070910 cmd diesel engines

Diesel Engines

September 10/11, 2007

1

11.09.2007 < 2 >© MAN Diesel SEDr. Georg Pachta-Reyhofen

MAN Diesel Cradle of Diesel Engine (1893 - 1897)


Business Areas of the MAN Group

IndustrialServices

▪ Contracting ▪ Logistics ▪ Service

Platform

▪ Trucks ▪ Buses▪ Engines ▪ Service

Commercial Vehicles

Diesel Engines▪ 2-Stroke ▪ 4-Stroke▪ Turbocharger ▪ Service

▪ Compressors ▪ Turbines ▪ Reactors ▪ Service

Turbomachinery

2


Neue Europäische Gesellschaft MAN Diesel SE (Societas Europaea)New European CompanyMAN Diesel SE (Societas Europaea)

Internationalisation and Strengthening of Competitiveness

One face to the customer

Groupwide integration of activities

International composition of committees, e.g. European Works Council

International, down-sized Supervisory Board

In force since September 1st 2006


Executive Board of MAN Diesel SE

Dr.-Ing Georg Pachta-Reyhofen

Chairman

Dr.-Ing Peter Sunn Pedersen

2-Stroke-Engines

Dr.-Ing Stefan Spindler

4-Stroke-Engines

Tage Reinert

Finance / Controlling

Dr.-Ing Stephan Timmermann

Production / After Sales

3


“We want to be the leading power systems supplier for marine and stationary applications and the preferred after-sales business partner

of our customers.“

Vision of MAN Diesel


Group Functions (GF)

Worldwide Sales- and After-Sales-Organisation

Business Units (BU)

After-Sales (A)

Dr. Pedersen

Executive BoardDr. Pachta Dr. Spindler Dr. Pedersen Dr. TimmermannReinert

Marine Low Speed (L)

MarineMedium Speed (M) Power Plant (P)

Turbocharger (T) Production (W)

Organisation

4


Brand Hierarchy

Corporate Logo

Company Brand

Product Brand

Service Brand

*

* expiring


Main Production Sites

St. Nazaire

Augsburg

Frederikshavn

Copenhagen

Velká Bíteš

5


MAN Diesel I PrimeServ Worldwide Network

Authorised Partners (172)PrimeServ (51)


Business Segments

Two-Stroke Diesel Engines formarine propulsion and stationaryapplications

Exhaust Gas Turbochargers

After-Sales-Services

Four-stroke Diesel, Gas and Dual-FuelEngines for marine propulsion, auxiliary, stationary- and offshore-applications

6


Car Engine, Displacement 0,5 l / cyl. Truck Engine, Displacement 2 l / cyl.

Car Engine: Displacement 0,5 l / cyl.

Truck Engine: Displacement 2 l / cyl.

Diesel Engines Compared (I)

Four-Stroke Medium Speed Engine L32/44 Common Rail, Displacement 35 l / cyl.


Car Engine, Displacement 0,5 l / cyl.

Truck Engine, Displacement 2 l / cyl.



Diesel Engines Compared (II)

Four-Stroke Medium Speed Engine L48/60, Displacement 108 l / cyl.

7




Diesel Engines Compared (III)



Two-Stroke Low Speed Engine K98ME, Displacement 2005 l / cyl.


Two-Stroke Low Speed Engine 12K98ME

Bore: 980 mm

Stroke: 2660 mm

Power Output: 74,760 kW

Torque: 7,360,392 Nm

Weight: 2,017 t

Length: ~ 25 m

Height: ~ 15 m

8


Two-Stroke Low Speed Engine 10K98MC-C


Fields of Application

Stationary Power Generation

Power Stations and Standby Generators

Marine

Main and Auxiliary Engines aboard Ships

9


Power Station, Dominican RepublicHeavy Fuel Oil


Interior View of a Power StationHeavy Fuel Oil, Natural Gas, Oil/Gas (Dual Fuel)

10


MAN Diesel Technology32/40 PGI Gas Engine

World‘s first Combination of Diesel and Otto Processes in a Gas Engine

Patented High-Pressure GasInjection in a Pre-Chamber with Glow-Plug

High-PressureGas Injection

Glow-Plug

Pre-Chamber


MAN Diesel Technology51/60 DF Dual-Fuel Engine

Largest and Most Powerful 4-StrokeDual-Fuel Engine

Fuel Flexibility (HFO, MDO, Gaswith Seamless Changeover)

Low-Pressure Gas Injection

Diesel Injector

Common Rail Pilot Fuel Injector

11


Four-Stroke Medium Speed Engine for Marine Applications – Genset for Power Generation


Four-stroke Medium Speed Engine for Marine Applications – Propulsion System with CPP

12


High Speed Multi-Hull Ferry ‘Milenium Tres’4 Four-Stroke Engines - 39,157 HP


Cruise Liner ’Norwegian Sun’6 Four-Stroke Engines - 68,932 HP

13


Interior View of an Engine RoomHeavy Fuel Oil, Oil/Gas (Dual Fuel)


LNG-tanker (Bowl Tank System)51/60 Dual Fuel, Natural Gas / Heavy Fuel Oil

14


Two-Stroke Low Speed Engines for Marine Applications


Container Vessel ‘Cosco Guangzhou’1 Two-Stroke Engine - 101,640 HP

15


Market Shares


Source: Diesel and Gas Turbine Worldwide, orders from June 2005 to May 2006; Wärtsilä Interim Report

Market Shares in Order Intake Stationary Applications (Diesel and Gas)

Medium Speed EnginesDiesel and Gas Gensets (> 0.5 MW)

49%

32% 19%

Medium Speed Engines Diesel and Gas Gensets (> 3.5 MW)

79%21%

MAN DieselWärtsiläOthers

MAN DieselOthers (incl. Wärtsilä)

16


Low Speed Propulsion

Source: - Low-speed based on Lloyds Fairplay Ltd.Q3/2006- Medium-speed based on Diesel & Gas Turbine June 2005 to May 2006; Lloyds Fairplay Ltd and own calculations

Market Shares in Order Intake Marine Engines

84%

12%4%

Medium Speed Propulsion

(> 0.5 MW)

40%

34% 26%

Medium SpeedAuxiliary

(>0.5 MW)

9%

44%

47%

MAN DieselWärtsiläOthers


MAN Diesel Engines in World Trade

50% of World Trade is Powered by MAN Diesel Engines!

17


Worldwide Contracting of Ships (> 2,000 DWT/GT)

Year-to-Date (as at June 2007) Fiscal YearID: JSA.Fairplay; Source: Fairplay

0

5

10

15

20

25

30

35

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 (preliminary)

GW

40

45


Source: Lloyd’s Register-Fairplay

0

10

20

30

40

50

60

70

80

90

2000 2001 2002 2003 2004 2005 2006 2007

MAN Diesel

MitsubishiWärtsilä

% GW

Low Speed Engines Marine PropulsionMarket Shares in Order Intake

18


MAN Diesel Wärtsilä MitsubishiSource: Lloyd’s Register-Fairplay

05

101520253035404550556065707580

2003 2004 2005

GW

2006 2007

83%

14%3%

Low Speed Engines Marine PropulsionMarket Volume and Shares in Order Backlog


0

5

10

15

20

25

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

GW

Source: Lloyd’s Register-Fairplay and MAN Diesel

Low Speed Engines Marine PropulsionMarket Volume and Share in Deliveries

MAN Diesel

19


Key Figures 2006 / 2007


1.363 1.460

1.872

2.619

2.203

0

500

1.000

1.500

2.000

2.500

3.000

3.500

2002 2003 2004 2005 2006 2007 est.

In M

ill. €

Order Intake

1.363 1.460

1.872

2.619

2.203

0

500

1.000

1.500

2.000

2.500

3.000

3.500

2002 2003 2004 2005 2006 2007 est.

In M

ill. €

+ 19 %

20


1.666

1.802

1.4211.312

1.408

0

500

1.000

1.500

2.000

2.500

2002 2003 2004 2005 2006 2007 est.

In M

ill. €

Sales

1.666

1.802

1.4211.312

1.408

0

500

1.000

1.500

2.000

2.500

2002 2003 2004 2005 2006 2007 est.

In M

ill. €

+ 8 %


870 1.003

1.449

1.991

2.800

0

500

1.000

1.500

2.000

2.500

3.000

3.500

4.000

2002 2003 2004 2005 2006 2007est.

In M

ill. €

Order Backlog

870 1.003

1.449

1.991

2.800

0

500

1.000

1.500

2.000

2.500

3.000

3.500

4.000

2002 2003 2004 2005 2006 2007est.

In M

ill. €

+ 41 %

21


Operating Profit (EBIT)

270

82

58 55

117

229

0

50

100

150

200

250

300

2002 2003 2004 2005 2006 2007 est.

In M

ill. €

82

58 55

117

229

0

50

100

150

200

250

300

2002 2003 2004 2005 2006 2007 est.

In M

ill. €

+ 95 %


Return on Sales (RoS)

5,9

4,43,9

12,7

7,1

0

5

10

15

2002 2003 2004 2005 2006 2007 est.

In %

5,9

4,43,9

12,7

7,1

0

5

10

15

2002 2003 2004 2005 2006 2007 est.

In %

+ 79 %

22


Benchmarking Wärtsilä vs. MAN Diesel

Source : MAN Diesel/GC, Wärtsilä Interim Report Q2/2007 and Financial Securities

0

50

100

150

200

250

300

350

2005 2006 2007est.

2005 2006 2007est.

EBIT [Mill. €]

0%

2%

4%

6%

8%

10%

12%

14%

2005 2006 2007est.

2005 2006 2007est.

ROS [%]

Wärtsilä

MAN Diesel

Sales [Mill. €]

0

500

1000

1500

2000

2500

3000

3500

4000

2005 2006 2007est.

2005 2006 2007est.


Summary of Business Review

Outstanding order intake, turnover, order backlog and profit!

Consolidate and further improve future prosperity!

23


Strategic Focuses 2007


Sustainable Increase in Efficiency by

Concentrated implementation of new organisational structure with group-wide process alignment

Streamlining of product portfolio and focusing on core components in production

Extension of global sourcing (in particular in Korea, China and India)

Selective offshoring, e.g. Design Office in Aurangabad, India

Strategic Focuses (I)Structural Improvements

24


Extension of Worldwide After-Sales-Network of MAN Diesel I PrimeServ by

Extension of network (5 - 10 new hubs p.a.)

Increase of Market Share for Medium Speed in the Segments:

LNG-tankers

Offshore and Navy

Turnkey Power Plants

Strategic Focuses (II)Growth Strategy


Focus on Environment-Friendly Technologies

Market introduction of Common Rail injection system for all heavy fuel oil engines

Further adaptation of existing engine types for Bio-Fuel applications

Further development of significant new NOx reduction technologies such as Fuel Water Emulsion, Humid Air and SCR technologies

Accelerated development of retrofit packages for engines in the field

Strategic Focuses (III)Innovation Leadership

25


Outlook


Operational excellence with a continuous focus on profit quality

Outstanding participation in market growth in profitable business segments

Expansion of innovation leadership

Outlook for MAN Diesel

“We want to be the leading power systems supplier for marine and stationary applications and the preferred after-sales business

partner of our customers.“

26


070910 cmd diesel engines

Documents

man diesel se

pressure gas injection

diesel engines compared

man diesel engines

sales business partner

man diesel

speed based

marine propulsion