Annual General Meeting
The annual get-together of shareholders in a joint stock company. It is also attended by the company's executive and supervisory boards. The AGM gives the shareholders an opportunity to exercise their rights: They select members for the supervisory board, vote on the distribution of profits, on the stewardship of the executive and supervisory boards, and amendments to the company statutes (capital increases, the issue of convertible bonds etc.) At companies with bearer shares, shareholders are notified and invited to the AGM by their depositary bank. Cash flow
A measure of a company's financial and earnings potential. It is calculated as the difference between the inflow and outflow of cash and cash equivalents during the financial year. Corporate Governance
The term "corporate governance" denotes the responsible management and supervision of a company. Corporate governance standards were established to make the management structures of internationally active companies more transparent for investors. All listed Finnish companies which submit to the recommendations of the Finnish Corporate Governance Code are legally obliged to issue a compliance statement each year. Dividend
The share of a company's profit paid to a shareholder. The amount is decided by the Annual General Meeting on the basis of proposals put forward by the company's executive and supervisory boards. Dividend yield
Indicator for assessing the profitability of an investment in equities. It is determined by dividing the dividend by the adjusted share price at the end of the reporting year and then multiplying it by 100.
A financial indicator denoting earnings before interest and taxes. Equity ratio
A financial measure showing the share of equity or own capital and reserves as a proportion of total assets.
Listed companies have an obligation to publicly disclose a shareholder's notification of changes in its holdings. Changes in holdings are disclosed when the holding reaches, exceeds or falls below 5, 10, 15, 20, 25, 30, 50 or 90 percent or two thirds of the voting rights or the numbers of shares of the company. Gearing
A financial indicator expressing the ratio of net debt to shareholders' equity. IFRS/IAS
International Financial Reporting Standards / International Accounting Standards. They facilitate comparability of the financial statements of companies operating in different European countries. They are also designed to provide more comprehensive information for investors as anonymous participants in the organised capital markets. The IFRS standards were developed by the International Accounting Standards Committee (IASC) in London, which in 2001 was renamed IASB (International Accounting Standards Board) following a restructuring. The standards that had been adopted until then were gradually modified or replaced by new standards by the IASB. The new standards are called IFRS, while the earlier standards that continue to apply keep the name IAS. As of 2005 capital market-oriented companies must prepare their consolidated financial statements in accordance with IFRS. Wärtsilä adopted IFRS reporting standards on 1 January 2008. Insider register
A company is obliged to maintain both a public and a company-specific insider register. A public insider register includes personal information of insiders, i.e. persons subject to the disclosure obligation, and information on their holdings and trading in securities issued by their own company. Wärtsilä's permanent insiders comprise the statutory insiders, i.e. the Board of Directors, the President and CEO, the Executive Vice President and the Principal Auditor, as well as the members of the Board of Management.
Non-recurring items are related to restructuring measures and one-time charges for events or activities, which are not part of the normal business operations. Operating result
A profit term denoting the profit from operating activities less book profits (and losses), write-back (or allocation of provisions), currency losses on valuation at the balance sheet date of long-term financial liabilities, and other periodic expenses and income.
A company's stock currently held by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders. Retained earnings
Allocation of retained profits to shareholders' equity for the purpose of strengthening a company's financial base.
Return on equity (ROE)
A financial term indicating the ratio of net profit to shareholders' equity. Return on investment (ROI)
A financial term indicating the ratio of return of an investment to the cost of an investment.
A financial calculation that is equal to a company's current assets minus its current liabilities.
Calculation of financial ratios