Wärtsilä Corporation Template
Transcript of Wärtsilä Corporation Template
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WÄRTSILÄ CORPORATION BANK OF AMERICA MERRILL LYNCH GLOBAL INDUSTRIALS CONFERENCE 2014 18 MARCH 2014 Björn Rosengren, President & CEO
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Net sales by business 2013
Ship Power 28%
Power Plants 31%
Services 40%
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Profitability developed well
MEUR
Figures shown before nonrecurring restructuring items
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12.1%
10.7% 11.1% 10.9% 11.2%
12.8%
11.0% 11.5% 11.7% 11.9%
0%
2%
4%
6%
8%
10%
12%
14%
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2009 2010 2011 2012 2013
Net sales EBIT % EBITA % before intangible asset amortisation related to acquisitions
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Order intake reflects market situation
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2009 2010 2011 2012 2013
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Power Plants Ship Power Services
-15%
14%
-4%
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Delivery next year Delivery after next year
31.12.2012 31.12.2013
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Order book distribution
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Mill
ion
CG
T
# of
ves
sels
Merchant Offshore Cruise and Ferry Special vessels 3 months moving average in CGT
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Source: Clarkson Research Services
* CGT= gross tonnage compensated with workload
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Vessel contracting remains active
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Growth in Ship Power order intake
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34%
42%
6%
8%
7% 3%
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Cruise and ferry Merchant
Special vessels Offshore Navy
Other
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The most complete marine offering
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Ship Power focus areas
Efficiency Gas and dual-fuel solutions
Environmental solutions
Offshore market
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Continued interest in gas engines and systems
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Power generation markets challenging
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0
5 000 000
10 000 000
15 000 000
20 000 000
25 000 000
-2,00
-1,00
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1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012
Elec
tric
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onsu
mpt
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GW
h
Gro
wth
%
Electricity consumption growth vs. GDP growth
GDP yearly growth rate Electricity production growth rate Electricity domestic consumption
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2009 2010 2011 2012 2013
Review period development Total EUR 1,292 million (1,515)
IPP’s*
Utilities
Industrials
Oil 18%
Gas 82%
Review period order intake by fuel in MW
x%
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Power Plants order intake by customer segment
46%
23%
31%
*IPP = Independent Power Producer
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Power Plants installed base
Others
IPP:s Utilities
Industry
Europe: Output: 12.5 GW
Asia: Output: 19.8 GW
Africa & Middle East: Output: 12.5 GW
* December 2013
Americas: Output: 11.7 GW
Total: 56.2 GW Countries: 169 Plants: 4,700
Power Plants’ strategic focus
Energy Efficiency
Operational Flexibility
Fuel Flexibility
Smart Power
Generation
• Maintain market leader position in flexible baseload and industrial self-generation in the growing emerging markets
• Grow in the large utility gas power plant markets
• Actively influence the regulatory environment to enable capacity investments
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Developing medium-scale LNG infrastructure
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Service markets remain stable
MEUR
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23%
17%
8%
52%
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Projects Field service Spare parts
Contracts
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Development of installed engine base
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20000
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60000
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200000
2008 2009 2010 2011 2012 2013
Power Plants Ship Power
MW
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Wärtsilä’s service agreements around the world
Americas 5,140 MW
South Europe & Africa
4,930 MW
Middle East & Asia
5,390 MW
North Europe
2,900 MW
Power Marine
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Wärtsilä Services’ global network Widest range of offering and expertise
70 countries, 160 locations, 11,000 service professionals
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Installed base 182,000 MW
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Positioned for growth even in challenging markets
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Smart Power Generation
Gas as a fuel
Environmental solutions
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Solid financial standing
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2009 2010 2011 2012 2013
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Strong development in cash flow from operating activities
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Working capital Total inventories Advances received Working capital / Net sales
MEUR
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Working capital Good development in advances received
267
486
118 235
465
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5.8%
9.2%
3.7%
6.8%
9.8%
6.7%
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Solvency Gearing
0%
5%
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45%
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2009 2010 2011 2012 2013 -0,10
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Financial position
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An organisation based on divisions with end-to-end responsibility
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TRANSPARENCY ACCOUNTABILITY SPEED
Sales & marketing
Product delivery R&D Production Customer
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• Aim to secure future profitability and competitiveness
• Planned reductions of approx. 1,000 jobs globally
• Expected annual savings of EUR 60 million
• Non-recurring costs EUR 50 million, of which EUR 11 million recognised in 2013
Group-wide efficiency programme initiated
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Market outlook
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• Power Plants: Based on the forecasted GDP growth in 2014, the overall market for liquid and gas fuelled power generation is expected improve slightly. Ordering activity remains focused on emerging markets, which continue to invest in new power generation capacity.
• Ship Power: The main drivers supporting activity in shipping and offshore are in place. Overall contracting is expected to remain on improved levels, keeping in mind the prevailing overcapacity and the market’s limited capacity to absorb new tonnage.
• Services: The overall service market outlook remains stable.
NEW PIC
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Prospects for 2014
Wärtsilä expects its net sales for 2014 to grow by
0-10% and its operational profitability (EBIT% before non-recurring items) to be around 11%.
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WARTSILA.COM
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IR Contact: Natalia Valtasaari Director, Investor Relations Tel. +358 (0) 40 187 7809 E-mail: [email protected]