Financial targets and achievements

Wärtsilä’s target is to improve its financial performance and create added value for its stakeholders and society. Wärtsilä’s financial goal is to offer investors a competitive return on their investment through profitable growth. Wärtsilä has not defined a time frame for the achievement of these financial targets.

Net sales

• TARGET:  Wärtsilä's target is to grow faster than global GDP.
• MEANS TO ACHIEVE THE TARGET: Focus on strengthening position in strategic growth markets.
• DEVELOPMENT:  In 2017, net sales increased by 3% to EUR 4,923 million. Wärtsilä's CAGR 2007-2017 was 2.7%.

Profitability

• TARGET:  Wärtsilä's operating profit margin (EBIT%) target is 14% at the peak of the cycle. At the trough of the cycle, the target is to keep the operating profit margin above 10%.
• MEANS TO ACHIEVE THE TARGET:  Enhanced performance through continuous improvement.
• DEVELOPMENT: In 2017, the comparable operating result was EUR 590 million, which represents 12.0% of net sales.

Capital structure

• TARGET:  Wärtsilä's target is to maintain gearing below 0.50.
• DEVELOPMENT:  In 2017, gearing was 0.10.

Dividend

• TARGET:  Wärtsilä's target is to pay a dividend of at least 50% of earnings over the cycle.
• DEVELOPMENT:  The Board of Directors proposed that a dividend of 1.38 euro per share be paid for the financial year 2017, which represents 70.8% of operational earnings.