Buisiness Briefing On Shipbuilding - Ship2012
Buisiness Briefing On Shipbuilding - Ship2012
Buisiness Briefing On Shipbuilding - Ship2012
Segment
Business Customers/ Shipbuilding & Machinery & General
Others (Air-
domain Markets Ocean
Power Steel Aerospace Machinery &
Conditioning/M
Systems Infrastructure Systems Special
Development achine Tool)
Systems Vehicles
• Power
companies • GTCC
• Gas • Large-scale • Environmental
Energy & companies thermal plants
Environment • Resource power plants • Chemical
companies • Nuclear plants
(oil, chemicals, power plants
steel)
• Core • Compressors
industries • Metals • Turbo- • Air-
Machinery, (steel, etc.) machinery chargers conditioning
• Stationary
Equipment • Automotive
engines
• Crane & • Forklift equipment
Systems industry material trucks • Machine
• Logistics, handling • Engines tools
etc. systems
• Airlines (air)
• Shipping
companies • Commercial • Transportation • Commercial
Transportation (sea) Ships system aircraft
• Railways
(land), etc.
1. Review of FY2011
(Review of 2010 Mid Term Business Plan)
2. Shipbuilding & Ocean Development
Business Environment
3. Business Policy for Achieving the 2012
Mid Term Business Plan
4. Domestic Shipbuilding
5. Engineering
6. Overseas Shipbuilding
7. Summary (Vision)
(Billion yen)
Up 88.8 billion yen Up 9.2 billion yen Down 9.5 billion yen
year on year year on year year on year
- Ships ordered: 12 ships - Ship deliveries: 25 ships Profits were reduced by
(-5 year on year) (+2 year on year) the stronger yen and
As a result of targeting orders (Breakdown of deliveries)
other factors, resulting
for high value-added vessels, Car carrier 7 ships
in an operating loss.
received orders for 12 ships,
including 2 cruise ships and 4 Container carrier 3 ships
new LNG carriers RO-RO 3 ships
(Breakdown of ships ordered) VLCC 3 ships
First half: 2 ships LPG carrier 2 ships
Second half: 10 ships Surveying vessel 1 ship
Escort ship 1 ship
Patrol vessel 5 ships
+88.8 +9.2
-9.5
1.8
262.0 302.4 311.6
-7.7
173.2
2010 2011
2010 2011 2010 2011
1) Market environment (Order backlog for newbuildings and forecast for newbuilding demand)
There remains the supply-demand gap attributed to the Lehman Brothers failure of 2008.
- A large volume of orders beyond actual demand had been placed due to strong increase in seaborne cargo before the Lehman’s fall.
- Medium-term demand is expected to be 52 million GT (base case).
- With enlarging newbuilding capacity in South Korea and China before the Lehman’s fall, supply capacity at 125 million GT is assumed.
- With regard to the supply-demand gap, the supply capacity has continued to be in excess of demand by slightly more than 2 times.
【Million GT】
Supply capacity:
Ships on order 125 million GT
120
Legends Construction completions (on completion basis) Forecast for demand
(~2012.4.30) (2012.5.01~ (2010~2020)
2014.12.31)
The backlog is declining,aiming at
100 a recovery in the supply and
demand balance.
Gap between supply
【Forecast】
and demand
80 Ships on order incorporating (Excess of 1/2 to 2/3)
orders placed after May
60
Bulk:16.8
Demand (base case)
40 approx. 52 million GT
Tanker:7.8
20 Container:14.7
Others
Dry Cargo
LPGC PCC
LNGC
0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
2012 2013 2014 2015 2016 2017 2018 2019 2020
Source: Order backlog for newbuildings, World Shipyard Monitor (Apr. 2012)
CLARKSON RESEARCH SERVICES LTD.
2001年1月
2002年1月
2003年1月
2004年1月
2005年1月
2006年1月
2007年1月
2008年1月
2009年1月
2010年1月
2011年1月
2012年1月
2013年1月
Jan. 2000
Jan. 2001
Jan. 2002
Jan. 2003
Jan. 2004
Jan. 2005
Jan. 2006
Jan. 2007
Jan. 2008
Jan. 2009
Jan. 2010
Jan. 2011
Jan. 2012
Jan. 2013
2000年1月
2001年1月
2002年1月
2003年1月
2004年1月
2005年1月
2006年1月
2007年1月
2008年1月
2009年1月
2010年1月
2011年1月
2012年1月
2013年1月
4 7 10 1 4 7 10 1 4 7 10 1 4 7 10 1 4 7 10 1
FY2007 FY2008 FY2009 FY2010 FY2011
3) Summary
The supply and demand gap remains due to the enlarged newbuilding capacity
in South Korea and China. Moreover, the state of excess of space has
continued due to building of excessive number of ships in anticipation of
demand.
Due to these circumstances, ship prices have been declining gradually. Now
they are approx. 30% lower compared with the period before Lehman’s fall.
On the other hand, there are also expectations for demand for newbuildings
due in part to the increase in demand for newbuildings of LNG carriers
reflecting demand for alternative energies, activation of oil and gas resources
development reflecting soaring crude oil prices, and the revival of alternative
demand for domestic vessels that had stopped newbuildings due to the
impact of the earthquake.
(Billion yen)
Orders received Net sales Operating profit
Aim to receive 270 billion yen in orders and achieve net Aim to achieve operating
sales of more than 250 billion yen under the 2012 Plan profit exceeding 8 billion yen
(FY2014), by securing orders for products based on under the 2012 Plan through
advanced technologies and high added value, including expansion of the engineering
cruise ships, LNG carriers, destroyers & submarines for the business, in addition to
Ministry of Defense, and government ships, and by profitability improvement
expanding the engineering business. through the production
system and saving purchasing
costs.
+20.0 +10.0
311.6 +50
262.0 270.0 250.0
250.0 240.0
8.0
3.0
-7.7
2011 2012 2014 2011(*) 2012 2014
Basic
Basic strategies
strategies
Change
Change the
the business
business model
model by
by making
making use
use of
of advanced
technical technologies
skills and the and
Change the
thestrength
strengthofbusiness
ofthe model
thebrand. by
brand.Build making
Establish use of technical
the business skills
foundations and the
and execute
strength of the brand. Build the
the foundations
foundations and
and execute
execute internal
internal reforms
reforms
internal
to reforms to compete effectively and achieve new development.
to compete
compete effectively
effectively and
and achieve
achieve new
new development.
development.
Reinforce
Reinforce domestic
domestic shipbuilding.
shipbuilding.
(1)
(1)Establish
Establish cruise
cruise shipbuilding
shipbuilding as
as aa core
core business
business byby successfully
successfully
completing the new cruise ships No.1 and
completing the new cruise ships No.1 and No. 2. No. 2.
(2)
(2)Differentiate
Differentiate ourselves
ourselves with
with products
products based
based onon advanced
advanced
technologies
technologies and high added value, such as the new LNG
and high added value, such as the new LNG carrier
carrier and
and
marine
marine resource
resource research
research vessels.
vessels.
(3)
(3)Strengthen
Strengthen leading
leading defense
defense ship
ship technology.
technology.
(4)
(4)Ensure
Ensure competitiveness
competitiveness by by saving
saving factory
factory costs
costs by
by accelerating
accelerating
construction
construction of of aa sustainable
sustainable system.
system.
Towards
Towards thethe future,
future, accelerate
accelerate efforts
efforts to
to go
go beyond
beyond organic
organic growth.
growth.
(5)
(5)Expand
Expand engineering
engineering business
business based
based on on high
high performance
performance hull
hull forms
forms
and high energy saving technologies.
and high energy saving technologies.
(6)
(6)Develop
Develop overseas
overseas business
business including
including possibility
possibility of
of establishing
establishing
Joint
Joint Venture.
Venture.
Basic
Basic strategies
strategies
Build engineering and overseas shipbuilding businesses in addition to
domestic shipbuilding that is differentiated with products based on
advanced technologies and high added value.
Domestic
Domestic shipbuilding
shipbuilding
(core Engineering
Engineering
(core business)
business)
• Differentiate ourselves with products
based on advanced technologies and • Expand engineering business based on
high added value (cruise ships, new LNG superior hull forms and energy saving
carriers, ocean surveying vessels, technologies.
research vessels, etc.)
次世代型LNG船
Nickname:
“Sayaendo”
Sayaendo”
(string bean) Overseas
Overseas shipbuilding
shipbuilding
Establish
Establish cruise
cruise shipbuilding
shipbuilding as
as aa core
core business
business by
by successfully
successfully completing
completing
the new cruise ships No.1 and No. 2.
the new cruise ships No.1 and No. 2.
Top
Top priorities
priorities for
for the
the newbuildings
newbuildings
(1) Total optimization on the initiative of Cruise Ship Project Dept.
- Pursuit of total optimization of quality, cost, and delivery
(2) Further optimization of design by thorough application of 3D design.
- Intensive advance verification of integration between design and construction by 3D models.
- Sophisticated logistics management by the upgraded shipbuilding BOM [*]
(3) Innovate construction method and optimized construction regime
- Wider utilization of “Unit Cabin” construction method, steel plate printing system and the 3D viewer.
- Purpose-driven investment for cruise shipbuilding facilities and establishment of construction regime utilizing
external resources such as general constructors.
Actions
Actions for for establishing
establishing
cruise
cruise shipbuilding
shipbuilding as as aa core
core business
business
(1) Innovative cruise ship business model
(For Intellectual-Property-oriended model)
- Development of an integrated on-board energy management system(EMS)
- Providing highly efficient, energy-saving equipment (Exert the
strength of a comprehensive manufacturer.)
(2) Fundamental development for continuous Diamond Princess built by MHI
construction of cruise ships
- Shorter work periods through continuous development of laser welding technology and wider application of MD[*]
- Building up the global supply chain including Asian suppliers.
[*] BOM: Bill Of Material
MD: Modular Design
Differentiate
Differentiate ourselves
ourselves with
with products
products based
based on
on advanced
advanced technologies
technologies and
and high
high
added value, such as new LNG carrier and marine resource research vessels.
added value, such as new LNG carrier and marine resource research vessels.
“Sayaendo”
“Sayaendo” next-generation
next-generation MOSS
MOSS LNG
LNG carrier
carrier (155km
(155km33 type)
type)
Design concept Improved economic efficiency, navigation performance, and
environmentally friendly performance
High- Weight reduction by Improved Wind force Reduced depth, so
efficiency continuous cover maintainability reduction that the hull fits a
propulsion wider array of
system terminals
High-
performance
hull form
Inside
Inside the
the Spherical
continuous
continuous cover
cover tank Conventional 25% reduction in CO2
UST
Hull form Wind force
(*)
UST plant 100
85 78 75
(*) UST, high-efficiency marine propulsion
Total fuel efficiency improved by 15%
Ultra Steam Turbine Plant (Reheat turbine plant)
Strengthen
Strengthen leading
leading defense
defense ship
ship technology
technology
Stealth
Stealth
technologies Combat
Combat system
system integration
integration Damage
Damage control
control
technologies
Low radar reflection Integrate state of the art combat system to verify Design for flood control
search, detect, track and engagement function & fire fighting
Survivability under
contaminated
Infrared
Low infrared emission search emission environment
radar
reflection
damage
noise
Design & engineering for
High
High density
density underwater underwater explosion
outfitting
outfitting explosion
high-strength
steel welding
Submarines UUV AUV
Expand
Expand engineering
engineering business
business based
based on
on superior
superior hull
hull forms
forms
and
and energy
energy saving
saving technologies.
technologies.
Increasingly fierce competition for
External orders, reflecting the excess of ships Soaring fuel price Introduction of EEDI(*)
environment and the supply and demand gap
(*) EEDI (Energy Efficiency Design Index) is regulating CO2 emissions from international seaborne shipping based on specified lower
limits of transport energy efficiency of ships. They were adopted at IMO last year and regulations will start from 2013.
MHI solution:
solution: 1)
1) Shipbuilding
Shipbuilding engineering
engineering
Providing a wide range of solutions, from initial response to
after-sales services, depending on the needs and capability of
each customer
Flow of newbuilding
Support for
Initial planning and contract documents construction, process
management,
Provision of drawings construction S/V Repair
and remodeling
Package deal
Domestic
Domestic Overseas
Overseas
Collaboration
Collaboration with
with Collaboration
Collaboration with
with Collaboration
Collaboration with
with Sinopacific
Sinopacific
Oshima
Oshima Shipbuilding
Shipbuilding Co.,
Co., Ltd.
Ltd. Imabari
Imabari Shipbuilding
Shipbuilding Co.,
Co., Ltd.
Ltd. Shipbuilding
Shipbuilding Group Co.,
Group Co., Ltd.
Ltd. of
of China
China
Provision of - Concluded a Provision of
concept design comprehensive technical concept design of
of high-
high- collaboration agreement high-
high-performance
performance on container ships bulk carriers
bulk carriers - Joint development of car Under negotiations
and Mitsubishi carriers with multiple
Air Lubrication shipyards are
System(MALS)
System(MALS) underway with
respect to
container ships and
other types of ships.
Yangzhou Dayang Shipbuilding,
a Sinopacific Shipbuilding Group company
MHI solution:
solution: 2) Marine solution provider
Providing as packages the energy saving, environmental products we have
developed
Mitsubishi Air Lubrication System (MALS*):
Significantly improves the performance of newly built ships and ships in service (adopted
for cruise ships and bulk carriers) [MHI’
MHI’s unique technology]
Engineering for installing the ballast water treatment system on ships in service:
Provided to shipping companies [Industry leader in the number of installation works
experienced]
Gas fuel supply system (MHI-GEMS*):
A key technology for ships which use LNG as fuel (received an order
order for a test bench for
Mitsui Engineering & Shipbuilding Co.,
Co., Ltd.) [MHI’
MHI’s unique technology]
Scrubber for removing SOx:
A device for cleaning emission gas to comply with tighter emissions
emissions controls [MHI’
MHI’s
unique technology]
LNG re-liquefaction plant and open rack vaporizer for re-gassification:
Key devices for building an LNG supply chain [MHI’
MHI’s unique technology]
Develop
Develop overseas
overseas business
business including
including possibility
possibility
of
of establishing Joint
establishing Joint Venture.
Venture.
Entering into market by tieing up with
local leading companies.
Working with possibility of
establishing a joint venture.
Collaboration work [Signing ceremony with LTSB]
[Support details]
(Consulting on shipbuilding Hazira
technology)
- End of May:
Consultant deployment
(Accommodating trainees)
- Middle of May: Chennai
Receiving trainees
[Guidance given at LTSB]
(*) L&T Shipbuilding Limited (LTSB)
Expand
Expand the
the business
business scale
scale with
with engineering
engineering
and
and overseas shipbuilding business.
overseas shipbuilding business.
Net sales:
Approx. 350 billion yen
2014 Plan
Before 2012 Plan
and Onward
© 2012 MITSUBISHI HEAVY INDUSTRIES, LTD. All Rights Reserved. 19
Forecasts regarding future performance in these materials are based on judgment made in accordance with information
available at the time this presentation was prepared. As such, those projections involve risks and insecurity. For this reason,
investors are recommended not to depend solely on these projections for making investment decision. It is possible that
actual results may change significantly from these projections for a number of factors. Such factors include, but are not
limited to, economic trends affecting the Company’s operating environment, currency movement of the yen value to the
U.S. dollar and other foreign currencies, and trends of stock markets in Japan. Also, the results projected here should not be
construed in any way as being guaranteed by the company.