Wartsila Oyj Abp · OMXHEX:WRT1V
Wartsila Oyj Abp — Wärtsilä — Investor Day (June 2006)
28 slides from Wartsila Oyj Abp's investor day presentation, Jun 16, 2006
Slide 1: Strategic road map
Strategic road map President & CEO Ole Johansson Capital Markets Day, 16 June 2006 Wärtsilä’s Capital Markets Day 2006
Slide 2: Order intake growth continued, April - May 2006
Order intake growth continued, April - May 2006 Order intake up by 39% to MEUR 647 (464) Ship Power MEUR 381 (218) Power Plants MEUR 144 (50) Services MEUR 122 (196) Orderbook end of May MEUR 3,541 (2,099) Forecast for the full year 2006 unchanged Net sales for 2007 estimated to grow by 10-15% Furth
Slide 3: Mission
Mission We provide lifecycle power solutions to enhance the business of our customers, whilst creating better technologies that benefit both the customer and the environment. SHIP POWER POWER PLANTS SERVICES Wärtsilä’s Capital Markets Day 2006 3
Slide 4: Wärtsilä Ship Power
Wärtsilä Ship Power Wärtsilä’s Capital Markets Day 2006 4
Slide 5: Growth areas
Growth areas Safety Navigation & Machinery Life saving Communication Main engines Cargo appliances Navigation aids Power Handling Survival craft External transmission Cranes Emergency communication Lube oil Hatches equipment IT Systems Cargo gear Structural fire Emergency Electrical Fuel supply prot
Slide 6: Ship Power market and related services
Ship Power market and related services ESTIMATES New sales Services* EUR billions EUR billions Total = EUR 25 - 35 billion Total = EUR 10 - 15 billion Other 2-stroke main eng Other 2-stroke main eng 5-7 2-4 6-8 3-4 Cargo handling, dry 1-2 Cargo handling, 2-3 Cargo handling, 1 2 - 3 Propulsion & dry
Slide 7: The market position of Wärtsilä's marine engines Q1/2006
The market position of Wärtsilä’s marine engines Q1/2006 Own production Production by licensees Own production Medium-speed main engines Low-speed main engines Medium-speed auxiliary engines Wärtsilä 46% (45) Wärtsilä 27% (24) Wärtsilä 10% (8) Comp. 2 2% Others Comp. 1 13% 25% Comp. 1 Others Comp. 2
Slide 8: The market position of Wärtsilä's propulsor products
The market position of Wärtsilä’s propulsor products Controllable pitch propellers Fixed pitch propellers Gears includes JV Non-reversible only Wärtsilä 17%(15) Wärtsilä 34%(32) Wärtsilä 17%(16) Others 66%(68) Others 83%(85) Others 83% (84) Wärtsilä’s own calculation based on: Lloyd’s Register – Fai
Slide 9: The market position of Wärtsilä's propulsor and seals products
The market position of Wärtsilä’s propulsor and seals products Transverse thrusters Steerable thrusters Seals Wärtsilä 14%(16) Wärtsilä 19%(19) Wärtsilä 28% Others 86%(84) Others 81%(81) Others 72% Wärtsilä’s own calculation based on: Lloyd’s Register – Fairplay & Wärtsilä Ship Power Market shares b
Slide 10: A European battlefield – still!
Medium-speed main engines What’s up? Medium-speed main engines LNG Wärtsilä 46% (45) Higher output demand Environmental requirements Offshore Others Comp. 1 13% 25% A European battlefield – still! Comp. 2 16% Wärtsilä’s Capital Markets Day 2006 10
Slide 11: Corporate supply management
Corporate supply management CSM Ship Power Engine Suppliers Division Power Plants Customers Services Wärtsilä’s Capital Markets Day 2006 11
Slide 12: Medium-speed main engines: staying competitive in the long run
Medium-speed main engines Staying competitive in the long run Medium-speed main engines Concentrate on core competencies Wärtsilä 46% (45) (production architecture) Develop subcontractor network Corporate supply management Automation and control Others Comp. 1 13% 25% Comp. 2 16% Wärtsilä’s Capital
Slide 13: Auxiliary engines
Auxiliary engines Medium-speed auxiliary engines Preparing for China Wärtsilä 10% (8) Develop designs for competitiveness Others 90% Wärtsilä’s Capital Markets Day 2006 13
Slide 14: Wärtsilä Qiyao Diesel Company Ltd.
Wärtsilä Qiyao Diesel Company Ltd. 2005 2006 Letter of Business Ground JV contract Site Inauguration íntent license breaking 21.4.2005 June 5, 2006 June 2006 3.2.2005 3.8.2005 23.9.2005 Wärtsilä’s Capital Markets Day 2006 14
Slide 15: Low-speed main engines
Low-speed main engines What’s up? Low-speed main engines Licensee network Wärtsilä 27% (24) Mitsubishi strategic alliance Comp. 2 Joint development with Hyundai 2% Comp. 1 71% Develop market shares Wärtsilä’s Capital Markets Day 2006 15
Slide 16: Licensing
Licensing Dalian Marine Diesel Works, Dalian, China Hudong Heavy Machinery Co.,Ltd., Shanghai, China Yichang Marine Diesel Engine Plant, Yichang, China China Steel Machinery Corporation, Taiwan NKK Corporation, Tokyo, Japan Diesel United Ltd., H. Cegielski-Poznan S.A. Aioi, Japan Poznan, Poland Mits
Slide 17: Propulsors
Propulsors What’s up? Add capacity Develop competitiveness Innovative designs Navy relations Wärtsilä’s Capital Markets Day 2006 17
Slide 18: Propulsors: Move with the markets
Propulsors ”Move with the markets” Foundry in China Thruster factory in China Gearboxes from India Seals in Japan, UK… Wärtsilä’s Capital Markets Day 2006 18
Slide 19: Wärtsilä-CME Zhenjiang Propeller Co., Ltd.
Wärtsilä-CME Zhenjiang Propeller Co., Ltd. Zhenjiang, China g Wärtsilä-CME Zhenjiang Propeller Co., Ltd. g Joint venture with CME (China Marine Equipment /CSSC) g FPP (Fixed pitch propellers) g Foundry and factory Wärtsilä’s Capital Markets Day 2006 19
Slide 20: Wärtsilä Propulsion (Wuxi) Co., Ltd.
Wärtsilä Propulsion (Wuxi) Co., Ltd. Wuxi, China (inauguration 29th of June 2005) g Wärtsilä Propulsion (Wuxi) Co. Ltd. g Transverse thrusters g Factory Wärtsilä’s Capital Markets Day 2006 20
Slide 21: Wärtsilä India Ltd.
Wärtsilä India Ltd. Khopoli, India Manufacturing facility at Khopoli, Maharashtra Marine reduction gearboxes Components for propeller systems Nozzels Wärtsilä’s Capital Markets Day 2006 21
Slide 22: Wärtsilä Power Plants
Wärtsilä Power Plants Wärtsilä’s Capital Markets Day 2006 22
Slide 23: Power Plants: It's all about energy
Power Plants ”It’s all about energy” High energy prices Emission regulations Reallocation of funds Transportation Fuel availability Wärtsilä’s Capital Markets Day 2006 23
Slide 24: Power Plants: Our offering
Power Plants Our offering: Fuel flexibility High efficiency Load following capability Wärtsilä’s Capital Markets Day 2006 24
Slide 25: Wärtsilä Services
Wärtsilä Services Training CBM O&M support Spare parts Wärtsilä’s Capital Markets Day 2006 25
Slide 26: Services - accelerating growth
Services - accelerating growth % Se rvices grow th per Q Se rvice s sha re of sa le s % 30 60 25 50 20 40 15 30 10 20 5 10 0 0 Q1/03 Q2/03 Q3/03 Q4/03 Q1/04 Q2/04 Q3/04 Q4/04 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Wärtsilä’s Capital Markets Day 2006 26
Slide 27: Services: Redefinition of markets for continuous growth
Services Redefinition of markets for continuous growth Automation Multi-brand capabilities Broader presence Wärtsilä’s Capital Markets Day 2006 27
Slide 28: Thank you!
Thank you! Wärtsilä’s Capital Markets Day 2006 28