ABG SUNDAL COLLIER SPOTLIGHT ON FINLAND
Transcript of ABG SUNDAL COLLIER SPOTLIGHT ON FINLAND
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VESA RIIHIMÄKIGROUP VICE PRESIDENT, POWER PLANTS13 SEPTEMBER 2012
ABG SUNDAL COLLIER SPOTLIGHT ON FINLAND
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This is Wärtsilä
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SERVICES
POWER PLANTS
SHIP POWER
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5%
5%
9%4%
3%
9%
5%
5%
3%3%
ChinaTurkey
Norway
USADominicanRepublic
Brazil
Bangladesh
Singapore
South Korea
The Netherlands
Global net sales - top 10 countries
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Emerging markets
54%
Developedmarkets
46%
Strong presence in emerging markets
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Profitability
11.4%12.1%
10.7% 11.1%
10.3%
11.9%12.8%
11.0%11.5% 11.2%
0%
2%
4%
6%
8%
10%
12%
14%
16%
0
50
100
150
200
250
2008 2009 2010 2011 2012
EBIT% target:10-14%
MEUR
Q2Q1 Q3 Q4
EBIT% before non-recurring itemsEBITA% before non-recurring items and intangible asset amortisation related to acquisitions
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We provide superior value to our customers with our flexible, efficient and environmentally advanced energy solutions,
which enable a transition to a more sustainable and modern energy infrastructure.
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Target markets and solutions
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Flexible base-load powergeneration
Grid stabilityand peaking
Industrialself-generation
Solutions for oil and gasindustry
Liquid biofuel power plants
Flexible grid stability power plants
Oil, dual-fuel and gas fired power plants
Combined heat & power plants (CHP)
Pumping and compressionapplications
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Order intake by application
0
200
400
600
800
1000
1200
1400
1600
1800
2000
2008 2009 2010 2011 1-6/2012
MEUR Review period developmentTotal EUR 591 million (672)
Industrial self-generation
Flexible baseload
Oil 39% Gas
61%
Review period order intake by fuel in MW
67%
16%9%
8
9%
Oil & gas
Grid stability & peaking
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Global order intake
Order intake 1-6/2012: 1,401 MW (1,487)
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229110
58
Americas 425 (199)
Europe 19 (550) Asia 771 (298)
Africa and Middle East 186 (440)
19 59
602
110
59
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Flexible baseloadIndustrial self-generation Grid stability & peakingOil & gas
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Market for gas and liquid based power plants
Market data includes all prime mover units over 5 MW and estimated output of steam turbines for combined cycles. The data is gathered from the McCoy Power Report. In engine technology, Wärtsilä has a leading position. * Other combustion engines figures based partly on Wärtsilä’s own estimate.
GE
Siemens
MHI
Wärtsilä
Alstom
Russian
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3.3%
2011
29.3%
34.6%
4.3%
8.8%
14.4%
Total market 100.8 GW
3.3%
2.0%
Other combustion engines*
Other gas turbines
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Market trends and drivers
• GDP growth, electrification and increasing standard of living drive the growth of electricity demand
• Demand for sustainability and focus on climate change • Rapid growth of intermittent renewable generation• Increasing daily, weekly and seasonal demand fluctuation
increase the need for flexibility• Changing roles of fuels
– New coal power plants difficult to permit in the western countries
– Increasing role of gas, especially as a balancing fuel– The future of nuclear is uncertain
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The world needs affordable, clean, flexible and reliable power.
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Smart Power Generation optimises energy systems
In emerging markets, economic growth requires increasing investments in energy.
In developed countries, the transition to solar and wind power brings daily variations that need to be balanced.
Efficient and flexible Smart Power Generation enables power systems to deliver affordable, clean and reliable energy.
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Affordable
Reliable Sustainable
SmartPower
System
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Operational flexibility AND electrical efficiency
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FUTURE POWER PLANTS:
• Efficiency• Starting &
stopping times• Ramp rate• Part load
operation• Firm capacity
Flexibility
40%
50%
Medium High
Wärtsilä
OCGTAero
OCGTIndustrial
Coal
Nuclear30%
LowCombustion Engine Plants
Gas Turbine PlantsOpen Cycle (OC)Combined Cycle (CC)
Steam Power PlantsNuclear Power Plants
CCGT WärtsiläFlexicycle™
Electrical efficiency
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Benefits to power producers
• Operation in different generation modes• High efficiency• Fuel flexibility• Dependable and committable
– Multiple generating units• Operate on multiple markets
– Energy markets– Capacity markets – Ancillary services markets
• Optimum plant location close to consumers• Fast access to income through
fast-track project delivery• Competitive O&M costs
FuelFlexibility
OperationalFlexibility
EnergyEfficiency
Smart Power
Generation
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• Secures the supply of affordable and sustainable power– Enable highest penetration of wind and solar
power capacity– Maximising the use of wind power capacity by
minimising wind curtailment – Ensure system stability in wind variability and
contingency situations
• Ensures true optimisation of the total power system operation– Remove the abusive starts and stops, and
cyclic load from baseload plants that are not designed for it
– Improves the total system efficiency
Reliable Sustainable
Affordable
Smart Power
System
Benefits to power systems
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We are passionate about optimising lifecycle value by offering what our customers need. We deliver on this promise because we provide 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 growth and bigger
profits by focusing on operational efficiency, environmental excellence, fuel flexibility and services.
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The only complete marine offering
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Power drivesPower
distribution
Communicationand control
Automation
Propulsion
Seals &bearings
Engines
Serviceagreements
Ship Design
Flow & GasSolutions
Environmental Solutions
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Vessel order development
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Source: Clarkson Research Services* CGT= gross tonnage compensated with workload
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0
1
2
3
4
0
20
40
60
80
100
120
14001
.09
02.0
903
.09
04.0
905
.09
06.0
907
.09
08.0
909
.09
10.0
911
.09
12.0
901
.10
02.1
003
.10
04.1
005
.10
06.1
007
.10
08.1
009
.10
10.1
011
.10
12.1
001
.11
02.1
103
.11
04.1
105
.11
06.1
107
.11
08.1
109
.11
10.1
111
.11
12.1
101
.12
02.1
203
.12
04.1
205
.12
06.1
2
Mill
ion
CG
T*
# of
ves
sels
Merchant Offshore Cruise and Ferry Special vessels 3 months moving average in CGT *
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Order intake increased by 51%
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400
800
1200
1600
2000
2008 2009 2010 2011 1-6/2012
MEUR
Review period developmentTotal EUR 723 million (479)
Offshore43%
Merchant32%
Special vessels
7%
Other2%
Cruise & ferry
4%
Navy12%
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Key trends and drivers
• High oil prices represent a risk for global economic growth; however, they also stimulate investments in exploration and production for oil and gas
• Expansion of emerging economies continues to support growth of demand for transportation of raw materials and energy
• Ship owner base is shifting to Asia• Environmental regulations drive demand for
environmental solutions and gas as a marine fuel
• Increasing focus on energy efficiency and environmental performance
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The development of environmental solutions and gas technology will be our priority in meeting the evolving needs of our customers.
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Preventing the unexpected and optimising our customers operations is our shared passion. We serve you whenever, wherever.
We provide the broadest portfolio and best services in the industry for both shipping and power generation. We offer expertise, proximity and
responsiveness for all customers regardless of their equipment make in the most environmentally sound way.
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70 countries, 160 locations, 5000 field service experts
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Wärtsilä Services global networkWidest range of offering and expertise
Installedbase
180,000 MW
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Wide range of expertise
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Engine services Propulsion services Electrical & automation services Boiler services
Environmental services Service agreements Service projects Training services
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Net sales by quarter
0
100
200
300
400
500
600
2005 2006 2007 2008 2009 2010 2011 2012
Q1 Q2 Q3 Q4
MEUR
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Net sales distribution 1-6/2012
Spare parts 53%(54)
Field service 24%(23)
Contracts 14%(15)
Projects9%(8)
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Total EUR 942 million (890)
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Current key market drivers
• Growth of gas as a fuel in power generation and in shipping
• Stricter environmental regulations• Increased focus on total cost of
ownership • Accelerating technological
development• High demand for expertise
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Market outlook
• Power Plants: The power generation market is expected to remain active in 2012.
• Ship Power: Full year vessel contracting expected to be somewhat lower than in 2011. Robust contracting activity is expected for the offshore, gas carrier, and other specialised vessel markets.
• Services: The merchant marine segments are still expected to be under pressure, as overcapacity in the market continues to impact the potential for services in this area. The power plant service market is expected to develop steadily.
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Prospects for 2012 reiterated
Wärtsilä expects its net sales for 2012 to grow by 5-10% and its operational profitability (EBIT% before non-recurring items) to be 10-11%.
IR Contact:Pauliina TenniläDirector, Investor Relations Tel. +358 (0) 40 570 5530E-mail: [email protected]