Wartsila Oyj Abp · OMXHEX:WRT1V
Wartsila Oyj Abp — Wärtsilä — Investor Presentation (2014)
35 slides from Wartsila Oyj Abp's investor presentation, 2014
Slide 1: Wärtsilä Corporation Corporate Presentation 2014
WÄRTSILÄ CORPORATION CORPORATE PRESENTATION 2014 © Wärtsilä
Slide 2: Today we are much more than an engine company
Today we are much more than an engine company Passion for optimising lifecycle value for our customers with modern and sustainable power solutions. 2 © Wärtsilä Corporate presentation 2014
Slide 3: Our mission, vision, and values
Our mission, vision, and values MISSION We provide lifecycle power solutions to enhance our customers’ business, whilst creating better technologies that benefit both the customers and the environment. VISION We will be each of our customers’ most valued business partner. VALUES ENERGY EXCELLENCE EX
Slide 4: Our business areas
Our business areas POWER PLANTS SHIP POWER SERVICES 4 © Wärtsilä Corporate presentation 2014
Slide 5: This is what we bring to the market
This is what we bring to the market ENVIRONMENTAL FUEL EFFICIENCY SOLUTIONS FLEXIBILITY 5 © Wärtsilä Corporate presentation 2014
Slide 6: A comprehensive product portfolio
A comprehensive product portfolio Automation Ballast water Compressors Engines & Exhaust gas cleaning management generating sets Gas systems Gears Inert gas Oil separation Power electric systems Propulsors Pumps & valves Seals, bearings & Waste & fresh water Ship design services stern tubes manageme
Slide 7: Focus on research & development
Focus on research & development • Strong emphasis on technology leadership and innovation • Long-term co-operation with research institutes and partners • R&D investments in 2013 EUR 185 million, representing 4.0% of net sales Total efficiency, cost of ownership, fuel flexibility and versatility, mi
Slide 8: Production and R&D globally
Production and R&D globally Trondheim, Norway Frequency Vaasa, Finland converters 4-stroke engines, R&D Rubbestadneset, Gothenburg, Norway R&D Sweden Moss, Norway Turku, Finland Water treatment, Inert gas and exhaust R&D seals & bearings gas scrubber systems Stord, Norway Electrical & automation sys
Slide 9: Our personnel
Our personnel Approx. 18,700 professionals, 132 nationalities in nearly 70 countries, present in over 200 locations 9 © Wärtsilä Corporate presentation 2014
Slide 10: Positioned for growth even in challenging markets
Positioned for growth even in challenging markets Smart Power Gas as Environmental Generation a fuel solutions The transition to sustainable Economic and environmental Environmental regulation and and modern energy systems reasons increase the growth of increased focus on improved drives the demand
Slide 11: Financial highlights
Financial highlights MEUR 2013 2012 20112 20102 20092 Order intake 4 872 4 940 4 516 4 005 3 291 Order book at the end of the 4 426 4 492 4 007 3 795 4 491 period Net sales 4 654 4 725 4 209 4 553 5 260 Operating result 1 520 515 469 487 638 % of net sales 1 11.2 10.9 11.1 10.7 12.1 Earnings/share,
Slide 12: Solid profitability
Solid profitability MEUR 700 14% 600 12% 500 10% 400 8% 300 6% 200 4% 100 2% 0 0% 2009 2010 2011 2012 2013 EBIT EBIT % Figures shown before nonrecurring restructuring items 12 © Wärtsilä Corporate presentation 2014
Slide 13: Power Plants
Power Plants We provide superior value to our customers with our distributed, flexible, efficient and environmentally advanced energy solutions, which enable a transition to a more sustainable and modern energy infrastructure. 13 © Wärtsilä Corporate presentation 2014
Slide 14: Power Plants offering
Power Plants offering • We are a major supplier of flexible baseload power plants operating on various liquid and gaseous fuels • We provide unique, dynamic solutions for grid stability, reserve, peaking, load following and intermittent power generation • We also provide LNG terminals and distributi
Slide 15: Power Plants strategy
Power Plants strategy • Maintain our leading position in HFO & dual-fuel power plants by enhancing our value proposition • Grow strongly in large utility gas power plants by capturing market share from gas turbines • Grow in biofuel power plants by enabling a wide fuel range • Grow in special applic
Slide 16: Our customer segments
Our customer segments Utilities IPPs Industrial Customers Integrated utilities, power Financial investors investing in Industries such as mining, generation companies and power plants and selling power cement and oil & gas investing municipalities supplying to utilities in captive power plants elect
Slide 17: LNG enables the transition to gas infrastructure
LNG enables the transition to gas infrastructure • Wärtsilä is a one-stop shop EPC supplier for medium-sized LNG terminals and power plants • In 2014 Wärtsilä signed an EPC contract to supply the new LNG receiving terminal in Tornio, Finland Medium-sized LNG terminal • 50-1,000 MWth flow • 10,000-16
Slide 18: Market trends and drivers
Market trends and drivers • The growth of electricity demand is strongly connected to GDP development, electrification and increasing standard of living • Demand for sustainability and focus on climate change • Rapid growth of intermittent renewable generation, combined with escalating daily, weekly
Slide 19: Smart Power Generation optimises energy systems
Smart Power Generation optimises energy systems A unique all-in-one combination ...enables the transition to a modern of valuable features that.... and sustainable power system. Energy Efficiency Affordable Smart Smart Power Power Generation System Fuel Operational Flexibility Flexibility Reliable S
Slide 20: Ship Power
Ship Power We are passionate about optimising lifecycle value by offering what our customers need. We deliver on this promise through the only true total offering of marine products, integrated solutions and services in the industry – worldwide. We help our customers find the shorter route to robust
Slide 21: Market trends and drivers
Market trends and drivers • Development of the global economy drives marine trade and transportation growth • Development of oil & gas prices stimulates investments in exploration and production of offshore oil & gas • Environmental regulations drive demand for environmental solutions and gas as a m
Slide 22: Our offering covers all market segments
Our offering covers all market segments Oil & Gas Shipping Offshore Merchant Cruise & Ferry Navy Special vessels 22 © Wärtsilä Corporate presentation 2014
Slide 23: Ship Power's strategic goal
Ship Power’s strategic goal To be recognised as the leading provider of innovative products and integrated solutions in the marine and oil & gas industry. Leader in Efficiency Gas and dual-fuel solutions Environmental solutions Through • Lifecycle solutions for ship owners and operators offering • I
Slide 24: This is what we bring to the market
This is what we bring to the market • Environmental technologies • Engines and gensets • Propulsion equipment • Power electric systems • Automation & control • Water management systems Project services • Pumps and valves and support during Comprehensive • LNG handling, liquefaction project developme
Slide 25: The most complete marine offering on earth
The most complete marine offering on earth 25 © Wärtsilä Corporate presentation 2014
Slide 26: Increasing environmental regulation and alternatives for decreasing emissions
Increasing environmental regulation and alternatives for decreasing emissions NOx SOx Particulate matter Greenhouse gas Ballast water Acid rains Acid rains Impact on air quality Global warming Damage to local Ozone depletion eco-systems Tier II (2011) 3.5% (2012) Along with SOx Under evaluation Glob
Slide 27: Clear leadership in dual-fuel applications
Clear leadership in dual-fuel applications Power Plants Merchant Offshore Cruise & Ferry Navy Others DF Power plants LNGC OSV’s LNG cruise ferry Coastal patrol Tug • 83 installations • 145 vessels • 31 vessels • 1 vessel • DF-propulsion • 2 vessels • 375 engines • 585 engines • 96 engines • 4 engine
Slide 28: Services
Services Optimising customer operations whenever, wherever is our shared passion. We provide the broadest portfolio and the best services in the industry for both shipping and power generation. We offer expertise, proximity and responsiveness for all customers in the most environmentally sound way.
Slide 29: Market trends and drivers
Market trends and drivers • Focus on total cost of ownership • Development of installed base and installation utilisation • Growth of gas as a fuel in shipping and in power generation • Changes in environmental regulations and safety requirements • Outsourcing of operations and maintenance • Acceler
Slide 30: Improving lifecycle efficiency
Improving lifecycle efficiency Preventing the unexpected Reliable, continuous performance is essential. Planning operational reliability of installations through access to highest quality of technologies, services and competences ensures smooth operations and managing risk. Environmental efficiency
Slide 31: Wide range of expertise and services
Wide range of expertise and services Engine Propulsion Electrical and Boiler Seals and services services automation services services bearings services Environmental Service Service Training services agreements projects services 31 © Wärtsilä Corporate presentation 2014
Slide 32: Services strategic goals
Services strategic goals • Focus on customer needs in order to constantly develop our offering proposition with value-enhancing solutions • Support our customers locally through our qualified global field service network • Grow by providing more service agreements with new Ship Power and Power Plant
Slide 33: Wärtsilä Services' global network
70 countries, 160 locations, 11,000 service professionals Installed base Wärtsilä Services’ global network 182,000 MW Widest range of offering and expertise 33 © Wärtsilä Corporate presentation 2014
Slide 34: Passion for optimising lifecycle value with modern and sustainable power solutions
Passion for optimising lifecycle value with modern and sustainable power solutions. 34 © Wärtsilä Corporate presentation 2014
Slide 35: Appendix: abbreviations
Appendix: abbreviations • LNG = liquified natural gas • EPC = engineering, procurement and construction • HFO = heavy fuel oil • IPPs = independent power producers • ECA = emission control area • IMO = International Maritime Organization • MGO = marine gas oil • NOx = nitrogen oxdide • SOx = sulphur