Decarbonisation will transform the world and create new business opportunities, both in marine and energy. In marine, there will be an unprecedented rate of change in newbuild and existing fleets. Regulations and the demand for green transport will accelerate this change. In energy, electricity generation would need to grow by almost 3x, and renewables by 8x to reach Net Zero targets by 2050*. Until 2030, the balancing power market is expected to grow by more than 20% annually**.

As a technology leader in the decarbonisation transformation, Wärtsilä has significant value creation potential. The company is the frontrunner in developing engines that can run on carbon-neutral and zero-carbon fuels, such as biofuels, methanol, ammonia, and hydrogen. At the same time, Wärtsilä delivers flexible solutions that maximise energy efficiency while fossil fuels are still necessary, and solutions that enable increasing the share of renewables in the power system through efficient balancing power.

Wärtsilä has a leading position in power system optimisation, where both energy storage and flexible grid-balancing engine power plants play a key role. In marine, Wärtsilä is a market leader in ship electrification and a pioneer in onboard carbon capture solutions and digital offerings related to marine optimisation. The company is also partnering in offering complementary technologies for the decarbonisation transformation.

Sources: *IEA World Energy Outlook 2024, **Wärtsilä analysis

Wärtsilä is on a clear path for operational improvements and increased profitability. The growth is driven by opportunities in decarbonisation and services, complemented by potential partnerships and synergistic bolt-on acquisitions.

The existing installed base provides a strong foundation for service growth. Moving up the service value ladder has significant growth potential, both in marine and energy. This growth is supported by our strong offering in the transactional services business and lifecycle agreements. The green transformation provides notable opportunities for retrofits and conversions.

We focus on performance excellence and robust execution, and strive for transparency and accountability in our businesses. All businesses have a clear profit and loss responsibility, enabling decisions to be made close to where the customer value is created. To create sustainable long-term value, we foster high-performing teams with a focus on continuous improvement. We believe this also helps to attract and retain the best talent, which we further nurture and develop.

The strong balance sheet and financing structure support strategy execution. We have a clear path to reach our financial targets and have a strong commitment to realise them. With clear capital allocation principles and active portfolio and footprint management, we are set to deliver long-term shareholder value.