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T
 
his
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
F
 
inancial
 
review
 
BOARD
 
OF
 
DIRECTORS'
 
REPORT
BUSINESS
 
MODEL
Wärtsilä
 
provides
 
the
 
marine
 
and
 
energy
 
markets
 
with
 
smart
technologies
 
and
 
optimised
 
lifecycle
 
services.
 
In
 
the
 
energy
industry,
 
Wärtsilä
 
offers
 
flexible
 
power
 
plants
 
as
 
well
 
as
energy
 
management
 
and
 
storage
 
systems
 
on
 
an
 
equipment
only
 
or
 
turnkey
 
delivery
 
basis.
 
The
 
marine
 
offering
 
includes
power
 
systems,
 
voyage
 
solutions,
 
as
 
well
 
as
 
exhaust
treatment
 
applications,
 
gas
 
solutions,
 
and
 
shaft
 
line
 
solutions.
Wärtsilä
 
has
 
the
 
capabilities
 
needed
 
to
 
combine
 
its
 
marine
products
 
into
 
larger
 
integrated
 
systems
 
and
 
solutions.
Wärtsilä’s
 
portfolio
 
of
 
services
 
ranges
 
from
 
spare
 
parts
 
and
technical
 
expertise,
 
to
 
lifecycle
 
solutions
 
ensuring
 
a
maximised
 
installation
 
lifetime,
 
increased
 
efficiency,
 
and
guaranteed
 
performance.
 
The
 
company
 
aims
 
at
 
maximising
environmental
 
and
 
economic
 
performance
 
by
 
emphasising
sustainable,
 
data
 
-driven
 
innovation
 
and
 
total
 
efficiency.
 
To
 
support
 
its
 
geographically
 
dispersed
 
customer
 
base,
Wärtsilä’s
 
sales
 
and
 
service
 
network
 
covers
 
258
 
locations
 
in
73
 
countries
 
around
 
the
 
world.
 
Wärtsilä
 
operates
 
primarily
through
 
its
 
subsidiaries
 
and
 
strategic
 
joint
 
ventures.
 
The
company’s
 
manufacturing
 
model
 
is
 
assembly
 
based,
 
thus
emphasising
 
the
 
importance
 
of
 
developing
 
long
 
-term
relationships
 
with
 
its
 
global
 
network
 
of
 
suppliers,
 
which
consists
 
of
 
appr
 
oximately
 
1,200
 
global
 
direct
 
suppliers.
Wärtsilä’s
 
personnel
 
is
 
made
 
up
 
of
 
approximately
 
18,000
employees
 
comprising
 
139
 
nationalities.
 
By
 
recruiting
 
and
retaining
 
the
 
best
 
talent,
 
Wärtsilä
 
is
 
able
 
to
 
be
 
the
 
most
valued
 
business
 
partner
 
to
 
its
 
customers,
 
and
 
the
 
employer
 
of
choice
 
for
 
current
 
and
 
future
 
employees.
 
Wärtsilä
 
is
committed
 
to
 
conducting
 
its
 
business
 
in
 
a
 
responsible
manner,
 
and
 
promotes
 
responsible
 
practices
 
throughout
 
its
value
 
chain.
 
CEO
 
APPOINTMENT
In
 
September,
 
Håkan
 
Agnevall
 
(b.
 
1966,
 
M.Sc.
 
(Tech),
 
MBA)
was
 
appointed
 
as
 
the
 
new
 
President
 
and
 
CEO
 
for
 
Wärtsilä
Corporation.
 
Mr
 
Agnevall
 
assumed
 
the
 
role
 
on
 
1
 
February
2021.
 
He
 
succeeds
 
Jaakko
 
Eskola,
 
who
 
will
 
continue
 
as
 
a
senior
 
advisor
 
to
 
the
 
Board
 
and
 
executive
 
team
 
until
 
he
retires
 
on
 
30
 
June
 
2021.
Mr
 
Agnevall
 
has
 
a
 
proven
 
record
 
of
 
developing
 
organisations
and
 
businesses
 
with
 
a
 
strong
 
focus
 
on
 
customers,
technology,
 
and
 
people.
 
His
 
experience
 
in
pioneering
 
electrification
 
and
 
autonomous
 
transportation
 
will
strengthen
 
Wärtsilä’s
 
activities
 
in
 
corresponding
 
areas.
STRATEGY
Strategy
 
implementation
 
in
 
2020
Despite
 
the
 
COVID
 
-19
 
related
 
disruptions
 
to
 
business
operations,
 
Wärtsilä’s
 
commitment
 
to
 
R&D
 
activities
 
has
remained
 
unchanged.
 
The
 
year
 
saw
 
progress
 
in
 
future-
proofing
 
engine
 
technology
 
in
 
line
 
with
 
the
 
global
 
trend
towards
 
the
 
decarbonisation
 
of
 
the
 
energy
 
and
 
marine
markets
 
.
 
This
 
was
 
demonstrated
 
by
 
the
 
initiation
 
of
 
full
 
-scale
testing
 
of
 
ammonia
 
as
 
a
 
fuel
 
in
 
Wärtsilä’s
 
four
 
-stroke
combustion
 
engine
 
,
 
as
 
well
 
as
 
with
 
the
 
announcement
 
of
efforts
 
to
 
develop
 
the
 
combustion
 
process
 
in
 
gas
 
engines
 
to
enabl
 
e
 
them
 
over
 
time
 
to
 
burn
 
100%
 
hydrogen
 
fuel.
 
Several
new
 
concepts
 
utilising
 
connectivity
 
and
 
digitalisation
 
to
enhance
 
efficiency,
 
sustainability
 
,
 
and
 
the
 
safety
 
of
 
customer
operations
 
were
 
also
 
introduced.
 
These
 
included
 
solutions
 
for
smart
 
navigation,
 
remote
 
support
 
services,
 
as
 
well
 
as
 
a
 
cloud
simulation
 
platform
 
enabling
 
remote
 
training.
 
For
 
the
 
energy
ma
 
rkets
 
,
 
Wärtsilä
 
launched
 
the
 
Energy
 
Transition
 
Lab,
 
an
open
 
-data
 
p
 
latform
 
for
 
the
 
energy
 
industry
 
to
 
understand
 
the
impact
 
of
 
greater
 
utilisation
 
of
 
renewable
 
energy
 
and
 
the
effects
 
of
 
COVID
 
-19,
 
and
 
help
 
accelerate
 
the
 
energy
transition
 
.
Wärtsilä’s
 
emphasis
 
on
 
developing
 
solutions
 
utilising
 
the
latest
 
technology,
 
in
 
line
 
with
 
its
 
Smart
 
Marine
 
and
 
Smart
Energy
 
strategies,
 
resulted
 
a
 
number
 
of
 
important
 
orders
during
 
the
 
year.
 
In
 
the
 
marine
 
markets,
 
Wärtsilä
 
received
several
 
orders
 
for
 
hybrid
 
solutions,
 
including
 
a
 
contract
 
to
supply
 
a
 
fully
 
integrated
 
Wärtsilä
 
hybrid
 
solution
 
for
 
Misje
Rederi’s
 
three
 
newbuild
 
eco
 
-friendly
 
5,000
 
DWT
 
bulk
 
carriers.
Moreover,
 
the
 
order
 
from
 
UltraShip
 
Denmark
 
to
 
install
 
the
cloud
 
-based
 
Wärtsilä
 
Fleet
 
Operations
 
Solution
 
(
 
FOS
 
)
 
across
their
 
entire
 
fleet
 
demonstrates
 
market
 
development
 
towards
dig
 
ital
 
solutions
 
to
 
improve
 
efficiency
 
and
 
lessen
environmental
 
impact.
 
In
 
the
 
energy
 
sector,
 
the
 
need
 
for
flexible
 
power
 
solutions
 
to
 
support
 
the
 
expansion
 
of
renewable
 
energy
 
and
 
secure
 
grid
 
reliability
 
was
 
illustrated
 
by
the
 
resilience
 
of
 
activity
 
in
 
the
 
energy
 
storage
 
markets.
Awarded
 
contracts
 
included
 
the
 
first
 
order
 
for
 
the
 
GridSolv
Quantum
 
energy
 
storage
 
system,
 
a
 
fully
 
integrated
 
modular
and
 
compact
 
solution
 
that
 
enables
 
the
 
rapid
 
deployment
 
of
cost
 
-effective
 
energy
 
storage.
 
Another
 
order
 
reflecting
 
the
benefits
 
of
 
flexibility
 
was
 
the
 
contract
 
received
 
in
 
Europe
 
to
deliver
 
four
 
natural
 
gas
 
driven
 
power
 
plants
 
with
 
a
 
combined
output
 
of
 
nearly
 
300
 
MW.
 
The
 
new
 
fast
 
-starting
 
plants
 
will
provide
 
flexible
 
system
 
balancing
 
as
 
more
 
renewable
 
power
is
 
incorpor
 
ated
 
into
 
the
 
power
 
system.
 
Collaboration
 
with
 
industry
 
stakeholders
 
is
 
an
 
essential
element
 
in
 
the
 
development
 
of
 
technologies
 
needed
 
to
 
meet
changing
 
market
 
requirements
 
.
 
Joint
 
efforts
 
includ
 
ed
agreements
 
aimed
 
at
 
accelerating
 
the
 
marine
 
industry’s
ongoing
 
digital
 
transformation,
 
developing
 
autonomous
shipping,
 
and
 
exploring
 
the
 
use
 
of
 
new
 
technologies
 
and
alternative
 
fuels
 
to
 
promote
 
decarbonisation
 
efforts.
 
 
 
 
 
 
 
 
 
T
 
his
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
F
 
inancial
 
review
 
While
 
the
 
health
 
and
 
safety
 
of
 
personnel
 
is
 
a
 
continuous
priority
 
for
 
Wärtsilä,
 
it
 
reached
 
a
 
new
 
level
 
of
 
importance
 
in
2020
 
with
 
the
 
onset
 
of
 
the
 
global
 
C
 
OVID
 
-19
 
pandemic.
Wärtsilä
 
maintains
 
a
 
diverse
 
global
 
workforce
 
with
 
thousands
of
 
employees
 
perform
 
ing
 
tasks
 
onsite,
 
either
 
in
 
the
 
field
 
or
 
at
customer
 
premises.
 
By
 
establishing
 
a
 
global
 
crisis
 
response
team
 
and
 
local
 
country
 
incident
 
management
 
teams,
 
it
 
was
possible
 
to
 
monitor
 
and
 
act
 
upon
 
the
 
rapidly
 
developing
situation.
 
Global
 
mobility
 
was
 
secured
 
whilst
 
observing
appropriate
 
safety
 
and
 
precautionary
 
measures.
 
Numerous
Wärtsilä
 
employees
 
resorted
 
to
 
performing
 
their
 
work
remotely.
 
In
 
order
 
to
 
accommodate
 
this
 
way
 
of
 
working,
 
and
to
 
ensure
 
that
 
the
 
change
 
of
 
routine
 
functioned
 
smoothly,
Wärtsilä
 
provided
 
employees
 
with
 
digital
 
collaboration
 
tools
and
 
methods.
 
Furthermore,
 
guidelines
 
and
 
devices
 
were
provided
 
to
 
secure
 
an
 
appropriate
 
working
 
environment
 
at
their
 
homes.
 
Zero
 
lost
 
-time
 
injuries
 
continues
 
to
 
be
 
the
company’s
 
global
 
target.
 
During
 
2020,
 
lost
 
-time
 
injury
frequency
 
was
 
2.03
 
(2.25),
 
which
 
represents
 
a
 
decrease
 
of
1
 
0
 
%
 
compared
 
to
 
the
 
previous
 
year.
 
 
Financial
 
targets
 
and
 
outcome
 
in
 
2020
Wärtsilä’s
 
long
 
-term
 
financial
 
target
 
is
 
to
 
grow
 
faster
 
than
global
 
GDP,
 
and
 
to
 
maintain
 
its
 
operating
 
profit
 
margin
between
 
14%
 
at
 
the
 
peak
 
of
 
the
 
cycle
 
and
 
10%
 
at
 
the
 
trough.
Furthermore,
 
the
 
target
 
is
 
to
 
maintain
 
gearing
 
below
 
0.50,
and
 
to
 
pay
 
a
 
dividend
 
of
 
at
 
least
 
50%
 
of
 
earnings
 
per
 
share
over
 
the
 
cycle.
 
Wärtsilä’s
 
financial
 
performance
 
in
 
2020
 
was
 
below
 
the
 
long-
term
 
target,
 
as
 
a
 
result
 
of
 
the
 
effects
 
of
 
the
 
COVID
 
-19
pandemic
 
on
 
the
 
company’s
 
demand
 
environment
 
and
business
 
operations.
 
Net
 
sales
 
for
 
2020
 
declined
 
by
 
11%,
bringing
 
Wärtsilä’s
 
five
 
-year
 
compound
 
annual
 
growth
 
rate
 
to
-2%.
 
The
 
five
 
-year
 
compound
 
annual
 
growth
 
rate
 
of
 
the
 
global
GDP
 
was
 
2.3
 
%
 
(source:
 
IMF
 
estimate
 
as
 
of
 
October
 
202
 
0
 
).
Wärtsilä’s
 
comparable
 
operating
 
result
 
amounted
 
to
 
EUR
 
275
million,
 
which
 
represents
 
6.0%
 
of
 
net
 
sales.
 
Gearing
decreased
 
to
 
0.18.
 
The
 
Board
 
of
 
Directors'
 
proposed
 
dividend
of
 
EUR
 
0.20
 
per
 
share
 
represents
 
88.2%
 
of
 
operational
earnings.
THE
 
YEAR
 
2020
Operating
 
environment
Marine
The
 
effects
 
of
 
the
 
COVID
 
-19
 
pandemic
 
significantly
 
affected
the
 
demand
 
for
 
equipment
 
and
 
services
 
in
 
the
 
shipping
 
and
shipbuilding
 
markets
 
throughout
 
2020.
 
The
 
decline
 
in
seaborne
 
trade
 
and
 
travel
 
restrictions
 
impacted
 
the
 
fleet
utili
 
s
 
ation
 
rate,
 
especially
 
in
 
the
 
passenger
 
sector,
 
and
 
limited
the
 
appetite
 
for
 
newbuild
 
investments.
 
As
 
a
 
result,
 
only
 
815
vessels
 
were
 
contracted
 
during
 
the
 
year
 
(1,153
 
in
 
2019,
excluding
 
late
 
contracting)
 
and
 
the
 
demand
 
for
 
spare
 
parts
and
 
maintenance
 
activities
 
softened.
 
The
 
news
 
released
 
in
Novembe
 
r
 
regarding
 
COVID
 
-19
 
vaccine
 
results
 
improved
confidence
 
in
 
a
 
recovery
 
in
 
both
 
newbuild
 
and
 
service
activit
 
ies
 
across
 
all
 
vessel
 
segments.
Cruise
 
operations
 
were
 
heavily
 
affected
 
by
 
the
 
travel
restrictions
 
and
 
no
 
-sail
 
orders.
 
Despite
 
a
 
marginal
 
uptick
 
in
cruise
 
activity
 
towards
 
the
 
end
 
of
 
the
 
year,
 
the
 
vast
 
majority
 
of
the
 
fleet
 
remains
 
idled.
 
After
 
the
 
initial
 
disruptions
 
following
the
 
first
 
virus
 
outbreak,
 
the
 
ferry
 
fleet
 
was
 
gradually
reactivated
 
over
 
the
 
summer,
 
but
 
was
 
increasingly
 
idled
 
again
in
 
the
 
fourth
 
quarter
 
as
 
,
 
on
 
top
 
of
 
the
 
typical
 
seasonal
unwinding
 
,
 
a
 
new
 
wave
 
of
 
COVID
 
-19
 
hit
 
the
 
European
markets.
 
The
 
offshore
 
sector
 
continued
 
to
 
be
 
under
 
severe
pressure
 
due
 
to
 
low
 
oil
 
demand.
 
Limited
 
exploration
 
activity
led
 
to
 
a
 
decline
 
in
 
utilisation
 
of
 
drilling
 
rigs
 
and
 
support
vessels
 
to
 
levels
 
similar
 
to
 
the
 
post
 
-2014
 
market
 
cycle.
Conversely,
 
the
 
expected
 
growth
 
in
 
offshore
 
wind
 
projects
generated
 
demand
 
for
 
speciali
 
sed
 
vessels,
 
providing
newbuild
 
and
 
service
 
opportunities
 
in
 
wind
 
farm
 
related
vessels.
 
In
 
the
 
LNG
 
shipping
 
sector,
 
a
 
positive
 
trend
 
in
 
spot
rates
 
began
 
in
 
the
 
third
 
quarter
 
as
 
a
 
result
 
of
 
the
 
rapid
increase
 
in
 
Asian
 
LNG
 
demand
 
.
 
This
 
was
 
due
 
to
 
seasonal
factors
 
as
 
well
 
as
 
constrained
 
supply
 
resulting
 
from
 
outages
at
 
several
 
liquefaction
 
terminals.
 
The
 
containership
 
market
recovered
 
rapidly
 
from
 
the
 
initial
 
shock
 
posed
 
by
 
COVID
 
-19.
This
 
recovery
 
was
 
supported
 
by
 
continuous
 
gains
 
in
 
freight
volumes
 
resulting
 
in
 
higher
 
freight
 
rates
 
and
 
less
 
idle
capacity.
 
Crude
 
oil
 
and
 
product
 
tanker
 
earnings
 
remained
under
 
significant
 
pressure
 
during
 
the
 
latter
 
part
 
of
 
the
 
year,
 
as
oil
 
supply
 
cuts
 
and
 
the
 
unwinding
 
of
 
floating
 
storage
 
lowered
the
 
demand
 
for
 
oil.
 
Although
 
earnings
 
for
 
bulk
 
carriers
increased
 
in
 
the
 
second
 
half
 
,
 
thanks
 
to
 
a
 
higher
 
demand
 
for
iron
 
ore
 
from
 
China,
 
the
 
number
 
of
 
idled
 
vessels
 
continues
 
to
be
 
above
 
normal
 
levels.
 
The
 
HSFO/VLSFO
 
price
 
differential
 
narrowed
 
significantly
 
as
a
 
result
 
of
 
both
 
the
 
sharp
 
decline
 
in
 
oil
 
prices
 
and
 
improved
VLSFO
 
availability,
 
thus
 
negatively
 
impacting
 
the
 
pace
 
of
scrubber
 
retrofits
 
and
 
installations
 
on
 
newbuilds.
 
After
 
the
positive
 
news
 
regarding
 
COVID
 
-19
 
vaccine
 
breakthroughs
 
in
November,
 
oil
 
prices
 
surged
 
and,
 
consequently,
 
the
 
price
spread
 
between
 
bunker
 
fuel
 
types
 
increased
 
to
 
around
 
80
USD
 
per
 
tonne.
 
Nevertheless,
 
the
 
market
 
for
 
scrubber
Target
Development
 
in
 
2020
Development
 
in
 
2019
Net
 
sales
 
growth
 
faster
 
than
 
global
 
GDP
-11%
0%
Comparable
 
operating
 
result
 
margin
 
between
 
10%
 
and
 
14%
6.0%
8.8%
Gearing
 
below
 
0.50
0.18
0.30
Dividend
 
payment
 
at
 
least
 
50%
 
of
 
earnings
 
per
 
share
 
over
 
the
 
cycle
88.2%*
130.8%
*Proposal
 
of
 
the
 
Board
 
of
 
Directors
 
 
T
 
his
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
F
 
inancial
 
review
 
contracting
 
is
 
still
 
characteri
 
sed
 
by
 
a
 
high
 
degree
 
of
uncertainty
 
,
 
mostly
 
due
 
to
 
the
 
limited
 
visibility
 
on
 
future
 
price
spreads.
 
While
 
the
 
pandemic
 
has
 
led
 
to
 
a
 
significant
 
contraction
 
in
trade
 
volumes,
 
it
 
has
 
also
 
accelerated
 
the
 
digital
transformation
 
through
 
new
 
technologies
 
and
 
digital
applications
 
being
 
adopted
 
as
 
a
 
matter
 
of
 
necessity.
 
The
 
use
of
 
cloud
 
-based
 
remote
 
solutions
 
h
 
as
 
also
 
accelerated
 
in
response
 
to
 
restrictions
 
on
 
physical
 
travel.
 
Ship
 
-to
 
-port
communications,
 
as
 
well
 
as
 
document
 
and
 
data
 
exchange
 
,
are
 
increasingly
 
being
 
handled
 
electronically
 
rather
 
than
 
via
personal
 
interaction,
 
both
 
on
 
ships
 
and
 
in
 
port.
 
Furthermore,
fleet
 
optimisation
 
and
 
performance
 
management
 
technologies
are
 
increasingly
 
being
 
accepted
 
as
 
central
 
in
 
order
 
to
 
secure
profitability
 
in
 
a
 
competitive
 
market.
Meanwhile,
 
the
 
path
 
towards
 
the
 
decarbonisation
 
of
 
the
shipping
 
industry
 
continued
 
to
 
gain
 
p
 
ace.
 
The
 
share
 
of
alternative
 
-fuel
 
capable
 
vessels
 
among
 
the
 
total
 
newbuild
contracting
 
increased
 
during
 
the
 
year.
 
LNG
 
has
 
cemented
 
its
position
 
as
 
the
 
most
 
widely
 
adopted
 
alternative
 
fuel,
 
as
 
it
enables
 
immediate
 
GHG
 
emission
 
reductions.
 
Moreover,
 
the
dua
 
l-fuel
 
engine
 
technology
 
used
 
to
 
burn
 
LNG
 
is
 
fuel
 
flexible,
thus
 
mitigating
 
business
 
risks
 
associated
 
with
 
future
 
fuel
related
 
uncertainties
 
.
 
Zero
 
-carbon
 
fuels
 
,
 
such
 
as
 
biofuels,
ammonia
 
and
 
hydrogen
 
,
 
are
 
also
 
gaining
 
interest
 
as
 
are
various
 
energy
 
saving
 
technologies.
 
The
 
IMO
 
released
 
a
 
plan
in
 
November
 
to
 
drive
 
the
 
shipping
 
industry
 
towards
 
its
ambitious
 
decarbonisation
 
targets,
 
with
 
a
 
set
 
of
 
policies
coming
 
into
 
force
 
from
 
2022
 
onwards.
 
At
 
the
 
same
 
time,
 
the
European
 
Parliament
 
approved
 
a
 
proposal
 
to
 
include
 
shipping
in
 
its
 
emissions
 
trading
 
scheme
 
(ETS).
 
With
 
new
 
rules
expected
 
in
 
the
 
coming
 
years
 
that
 
will
 
require
 
shipowners
 
to
reduce
 
their
 
emissions
 
through
 
technical
 
or
 
operational
measures,
 
there
 
is
 
a
 
growing
 
consensus
 
that
 
vessels
 
should
increasingly
 
adopt
 
interoperable
 
network
 
technology
 
to
 
link
onboard
 
machinery,
 
navigation,
 
cargo
 
handling
 
,
 
and
 
other
systems
 
.
 
Such
 
technology
 
will
 
reduce
 
fuel
 
consumption,
 
while
representing
 
an
 
important
 
step
 
towards
 
decarbonisation
 
and
increased
 
efficiency.
Energy
The
 
COVID
 
-19
 
pandemic
 
and
 
the
 
resulting
 
slowdown
 
of
economic
 
activity
 
had
 
a
 
negative
 
impact
 
on
 
the
 
global
 
liquid
and
 
gas
 
fuelled
 
power
 
plant
 
markets
 
throughout
 
2020.
 
While
the
 
market
 
situation
 
has
 
stabilised
 
and
 
is
 
showing
 
some
improvement,
 
the
 
prevailing
 
uncertainty
 
regarding
 
the
duration,
 
development
 
,
 
and
 
economic
 
impacts
 
of
 
the
pandemic
 
continues
 
to
 
result
 
in
 
customers
 
postpon
 
ing
investments
 
in
 
new
 
power
 
plant
 
capacity.
 
Additionally,
 
energy
policies
 
are
 
being
 
developed
 
to
 
drive
 
ambitious
decarboni
 
s
 
ation
 
ta
 
rgets
 
,
 
and
 
utilities
 
continue
 
to
 
update
 
their
investment
 
strategies,
 
which
 
is
 
causing
 
uncertainty
 
and
delays
 
in
 
decision
 
-
 
making.
 
However,
 
activity
 
in
 
energy
storage
 
was
 
at
 
a
 
good
 
level,
 
driven
 
by
 
the
 
increasing
 
need
 
for
short
 
-term
 
flexible
 
capacity
 
in
 
power
 
systems
 
with
 
a
 
high
share
 
of
 
renewables.
 
While
 
mobility
 
restrictions
 
affected
 
the
ability
 
to
 
perform
 
service
 
activities,
 
the
 
demand
 
for
 
services
held
 
up
 
reasonably
 
well
 
,
 
and
 
customers
 
continued
 
to
 
show
interest
 
in
 
long
 
-term
 
service
 
agreements.
 
Wärtsilä’s
 
market
 
share
 
in
 
the
 
up
 
to
 
500
 
MW
 
market
 
segment
was
 
stable
 
at
 
9%
 
(9),
 
while
 
global
 
orders
 
for
 
natural
 
gas
 
and
liquid
 
power
 
plants
 
increased
 
by
 
3%
 
to
 
16.6
 
GW
 
during
 
the
twelve
 
-month
 
period
 
ending
 
in
 
September
 
2020
 
(16.0
 
GW
 
at
the
 
end
 
of
 
June).
 
Global
 
orders
 
include
 
gas
 
turbine
 
and
Wärtsilä
 
orders
 
with
 
prime
 
movers
 
over
 
5
 
MW
 
in
 
size.
 
The
data
 
is
 
gathered
 
from
 
the
 
McCoy
 
Power
 
Report.
Order
 
intake
 
and
 
order
 
book
Wärtsilä’s
 
o
 
rder
 
intake
 
in
 
2020
 
decreased
 
by
 
18%
 
to
 
EUR
4,359
 
million
 
(5,327)
 
compared
 
to
 
the
 
previous
 
year
.
Uncertainty
 
related
 
to
 
the
 
COVID
 
-19
 
pandemic
 
and
 
its
 
long-
term
 
implications
 
weakened
 
demand
 
across
 
all
 
businesses.
Book
 
-to
 
-bill
 
was
 
0.95
 
(1.03).
 
Service
 
order
 
intake
 
decreased
by
 
16%
 
to
 
EUR
 
2,267
 
million
 
(2,683),
 
while
 
equipment
 
order
intake
 
decreased
 
by
 
21%
 
to
 
EUR
 
2,091
 
million
 
(2,644).
The
 
order
 
book
 
at
 
the
 
end
 
of
 
the
 
year
 
decreased
 
by
 
14%
 
to
EUR
 
5,057
 
million
 
(5,878).
 
Cancellations
 
during
 
the
 
year
 
were
largely
 
in
 
line
 
with
 
normal
 
low
 
levels.
 
Wärtsilä
 
has
implemented
 
stricter
 
requirements
 
for
 
the
 
inclusion
 
of
 
new
and
 
existing
 
projects
 
in
 
the
 
order
 
book.
 
This
 
resulted
 
in
 
orders
amounting
 
to
 
approximately
 
EUR
 
340
 
million
 
being
 
removed
from
 
the
 
order
 
book
 
during
 
the
 
year,
 
primarily
 
due
 
to
 
lack
 
of
progress
 
or
 
milestone
 
payments
 
not
 
being
 
received,
 
as
 
well
as
 
some
 
cancellations.
 
Wärtsilä’s
 
current
 
order
 
book
 
for
 
2021
deliveries
 
is
 
EUR
 
3,298
 
million
 
(
 
3,571
 
).
Net
 
sales
 
and
 
operating
 
result
Wärtsilä’s
 
n
 
et
 
sales
 
in
 
2020
 
decreased
 
by
 
11%
 
to
 
EUR
 
4,604
million
 
(5,170)
 
compared
 
to
 
the
 
previous
 
year.
 
Service
 
net
sales
 
decreased
 
by
 
10%
 
to
 
EUR
 
2,255
 
million
 
(2,505).
Equipment
 
net
 
sales
 
decreased
 
by
 
12%
 
to
 
EUR
 
2,349
 
million
(2,665).
 
Of
 
Wärtsilä’s
 
net
 
sales,
 
approximately
 
65%
 
was
 
EUR
denominated
 
and
 
20%
 
USD
 
denominated,
 
with
 
the
 
remainder
being
 
split
 
between
 
se
 
veral
 
currencies.
The
 
operating
 
result
 
amounted
 
to
 
EUR
 
234
 
million
 
(362)
 
or
5.1%
 
of
 
net
 
sales
 
(7.0).
The
 
result
 
was
 
burdened
 
by
 
a
 
decline
in
 
service
 
volumes,
 
COVID
 
-19
 
driven
 
cost
 
inflation,
 
and
weaker
 
fixed
 
cost
 
absorption.
The
 
comparable
 
operating
result
 
totalled
 
EUR
 
275
 
million
 
(457)
 
or
 
6.0%
 
of
 
net
 
sales
(8.8).
 
Items
 
affecting
 
comparability
 
comprised
costs
 
related
 
to
divestments
 
and
 
restructuring
 
programmes
of
 
EUR
 
41
 
million
(95).
 
The
 
comparable
 
adjusted
 
EBITA
 
amounted
 
to
 
EUR
 
308
million
 
(498)
 
or
 
6.7%
 
of
 
net
 
sales
 
(9.6).
 
Purchase
 
price
allocation
 
amortisation
 
amounted
 
to
 
EUR
 
33
 
million
 
(41).
Financial
 
items
 
amounted
 
to
 
EUR
 
-43
 
million
 
(-47).
 
Net
interest
 
totalled
 
EUR
 
-10
 
million
 
(
 
-
 
12).
 
Profit
 
before
 
taxes
amounted
 
to
 
EUR
 
191
 
million
 
(315).
 
Taxes
 
amounted
 
to
 
EUR
58
 
million
 
(97),
 
implying
 
an
 
effective
 
tax
 
rate
 
of
 
30.3%
 
(30.7).
Profit
 
for
 
the
 
financial
 
year
 
amounted
 
to
 
EUR
 
133
 
million
(218).
 
Earnings
 
per
 
share
 
totalled
 
0.23
 
euro
 
(0.37).
 
Return
 
on
investment
 
(ROI)
 
was
 
7.1%
 
(11.5),
 
while
 
return
 
on
 
equity
(ROE)
 
was
 
5.8%
 
(9.0).
wartsila-2020-12-31p4i4
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
wartsila-2020-12-31p4i3 wartsila-2020-12-31p4i2 wartsila-2020-12-31p4i1 wartsila-2020-12-31p4i0 wartsila-2020-12-31p4i5
T
 
his
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
F
 
inancial
 
review
 
0
150
300
450
600
750
2020
2021
2022
2023
2024
2025
2026
MEUR
0
50
100
150
200
250
300
21
22
23
24
25
26
27
28
29
30
31
31+
MEUR
Annual
 
repayments
 
of
 
long-term
 
loans
0,00
0,10
0,20
0,30
0,40
0,50
2016
2017
2018
2019
2020
 
Group
 
net
 
sales
 
development
 
 
Result
 
 
 
Megawatts
 
delivered
 
 
2020
 
2019
 
Change
 
Marine
 
Power
 
1,257
 
1,505
 
-
16%
 
Energy
 
1,172
 
2,072
 
-
43%
 
Wärtsilä
 
total
 
2,429
 
3,577
 
-
32%
 
By
joint
 
venture
 
274
 
432
 
-
37%
 
Deliveries
 
total
 
2,703
 
4,009
 
-
33%
 
 
 
*Restated
 
due
 
to
 
IFRS
 
15
*Restated
 
due
 
to
 
IFRS
 
15
 
Financing
 
and
 
cash
 
flow
Loans
Committed
 
revolving
 
credit
 
facilities
 
(end
 
of
 
period)
Wärtsilä’s
 
cash
 
flow
 
from
 
operating
 
activities
 
in
 
2020
increased
 
to
 
EUR
 
681
 
million
 
(232),
 
thanks
 
to
 
improved
working
 
capital.
 
Working
 
capital
 
decreased
 
to
 
EUR
 
257
million
 
at
 
the
 
end
 
of
 
the
 
year
 
(732),
 
driven
 
by
 
lower
inventories,
 
as
 
well
 
as
 
by
 
efforts
 
to
 
reduce
 
credit
 
risk
 
through
strengthening
 
the
 
collection
 
of
 
receivables.
Advances
received
 
totalled
 
EUR
 
452
 
million
 
(452).
 
Additionally,
 
EUR
 
38
million
 
of
 
advances
 
pertained
 
to
 
assets
 
held
 
for
 
sale.
 
Maturity
 
profiles
 
of
 
long
 
-
 
term
 
loans
Gearing
 
Wärtsilä
 
aims
 
to
 
ensure
 
sufficient
 
liquidity
 
at
 
all
 
times
 
through
efficient
 
cash
 
management
 
and
 
by
 
maintaining
 
the
 
availability
of
 
sufficient
 
committed
 
and
 
uncommitted
 
credit
 
lines.
Refinancing
 
risk
 
is
 
managed
 
by
 
having
 
a
 
balanced
 
and
sufficiently
 
long
 
loa
 
n
 
portfolio.
Wärtsilä
 
has
 
focused
 
on
 
further
strengthening
 
its
 
liquidity
 
reserves
 
during
 
the
 
year
 
in
response
 
to
 
the
 
COVID
 
-19
 
pandemic.
 
Measures
 
taken
include
 
the
 
extension
 
of
 
revolving
 
credit
 
facilities
 
and
 
the
negotiation
 
of
 
additional
 
loan
 
facilities.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
wartsila-2020-12-31p5i0
 
T
 
his
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
F
 
inancial
 
review
 
0
100
200
300
400
2016
2017
2018
2019
2020
MEUR
Related
 
to
 
acquisitions
Other
 
capital
 
expenditures
Depreciation,
 
amortisation,
 
and
 
impairment
 
Cash
 
and
 
cash
 
equivalents
 
amounted
 
to
 
EUR
 
919
 
million
 
at
the
 
end
 
of
 
the
 
year
 
(358).
 
Additionally,
 
EUR
 
14
 
million
 
of
 
cash
and
 
cash
 
equivalents
 
pertained
 
to
 
assets
 
held
 
for
 
sale
 
(
 
11
 
).
Unutilised
 
committed
 
credit
 
facilities
 
totalled
 
EUR
660
million
(640).
 
rtsilä
 
had
 
interest
 
-bearing
 
debt
 
totalling
 
EUR
 
1,327
 
million
at
 
the
 
end
 
of
 
the
 
year
 
(1,096).
 
The
 
total
 
amount
 
of
 
short
 
-term
debt
 
maturing
 
within
 
the
 
next
 
12
 
months
 
was
 
EUR
 
198
million.
 
Long
 
-
 
term
 
loans
 
amounted
 
to
 
EUR
 
1,129
 
million.
Net
 
interest
 
-bearing
 
debt
 
totalled
 
EUR
 
394
 
million
 
(726).
Gearing
 
was
 
0.18
 
(0.30),
 
while
 
the
 
solvency
 
ratio
 
was
 
38.1%
(40.8).
 
Equity
 
per
 
share
 
was
 
3.68
 
euro
 
(4.05).
Capital
 
expenditure
Capital
 
expenditure
 
related
 
to
 
intangible
 
assets
 
and
 
property,
plant,
 
and
 
equipment
 
amounted
 
to
 
EUR
 
115
 
million
 
(116)
 
in
2020.
 
Capital
 
expenditure
 
related
 
to
 
acquisitions
 
and
investments
 
in
 
securities
 
totalled
 
EUR
 
2
 
million
 
(6).
Depreciation,
 
amortisation,
 
and
 
impairment
 
amounted
 
to
 
EUR
174
 
million
 
(180).
In
 
2021,
 
capital
 
expenditure
 
related
 
to
 
intangible
 
assets
 
and
property,
 
plant,
 
and
 
equipment
 
is
 
expected
 
to
 
be
 
below
depreciation,
 
amortisation,
 
and
 
impairment.
 
Gross
 
capital
 
expenditure
Innovations,
 
research
 
and
 
development
Wärtsilä
 
is
 
committed
 
to
 
helping
 
minimise
 
the
 
environmental
footprint
 
of
 
the
 
maritime
 
and
 
energy
 
industries.
 
Investments
 
in
R&D
 
are
 
central
 
to
 
securing
 
Wärtsilä’s
 
future
 
positioning,
 
and
will
 
continue
 
despite
 
the
 
prevailing
 
market
 
uncertainty.
Developing
 
the
 
use
 
of
 
alternative,
 
commercially
 
viable,
 
and
environmentally
 
friendly
 
fuels
 
for
 
the
 
future
 
is
 
a
 
key
 
focus
area
 
of
 
research
 
and
 
development,
 
as
 
is
 
improving
 
the
connectivity,
 
efficiency,
 
sustainability,
 
and
 
safety
 
of
 
customer
operations
 
through
 
the
 
increased
 
use
 
of
 
digital
 
solutions.
 
With
its
 
lifecycle
 
solution
 
s
 
offering,
 
Wärtsilä
 
goes
 
beyond
 
mere
maintenance
 
and
 
operation
 
by
 
delivering
 
guaranteed
performance
 
based
 
on
 
mutually
 
agreed
 
target
 
levels.
Research
 
and
 
develo
 
pment
 
expenditure
 
totalled
 
EUR
 
153
million
 
(
 
164
 
)
 
in
 
2020
 
,
 
which
 
represents
 
3.3%
 
of
 
net
 
sales
(3.2
 
).
 
Marine
In
 
the
 
development
 
of
 
viable
 
future
 
fuels
 
Wärtsilä
 
,
 
in
 
close
cooperation
 
with
 
Knutsen
 
OAS
 
Shipping
 
AS,
 
Repsol,
 
and
Sustainable
 
Energy
 
Catapult
 
Centr
 
e
 
,
 
initiated
 
the
 
world’s
 
first
long
 
-term,
 
full
 
-scale
 
testing
 
of
 
ammonia
 
as
 
a
 
fuel
 
in
 
a
 
marine
4
 
-stroke
 
combustion
 
engine
 
in
 
2020.
 
The
 
testing
 
is
 
supported
by
 
a
 
NOK
 
20
 
million
 
grant
 
from
 
the
 
Norwegian
 
Research
Council
 
through
 
the
 
DEMO
 
2000
 
programme.
 
Key
 
developments
 
in
 
the
 
context
 
of
 
portfolio
 
enhancements
included
 
the
 
completion
 
of
 
full
 
-scale
 
testing
 
of
 
Wärtsilä’s
 
LPG
fuel
 
supply
 
system
 
with
 
a
 
full
 
-
 
sized
 
2
 
-stroke
 
marine
 
engine
burning
 
liquid
 
petroleum
 
gas
 
(LPG)
 
as
 
fuel.
 
The
 
tests
 
were
completed
 
by
 
retrofitting
 
the
 
system
 
on
 
four
 
very
 
large
 
gas
carriers
 
(VLGC)
 
owned
 
by
 
the
 
Norwegian
 
operator
 
BW
 
LPG.
In
 
addition,
 
Wärtsilä
 
launched
 
its
 
FuelFlex
 
Injection
 
Control
Unit
 
upgrade
 
solution
 
to
 
meet
 
the
 
requirements
 
of
 
operating
RT
 
-
 
flex
 
type
 
2
 
-
 
stroke
 
diesel
 
engines
 
with
 
both
 
residual
 
and
low
 
-viscosity
 
marine
 
fuels.
 
This
 
is
 
particularly
 
relevant
 
in
 
view
of
 
the
 
industry’s
 
increasing
 
use
 
of
 
low
 
-sulphur
 
-content
 
fuels
 
in
order
 
to
 
be
 
compliant
 
with
 
sulphur
 
emission
 
regulations.
Wärtsilä
 
also
 
introduced
 
its
 
Compact
 
Reliq
 
reliquefaction
plant,
 
designed
 
to
 
reliquefy
 
boil
 
-off
 
gas
 
(BOG)
 
onboard
 
gas
carriers
 
and
 
LNG
 
bunker
 
vessels
 
and
 
keep
 
the
 
cargo
 
cool
under
 
all
 
operational
 
conditions.
 
Thanks
 
to
 
its
 
compact
design,
 
the
 
system
 
can
 
be
 
installed
 
on
 
existing
 
vessels
without
 
extensive
 
modification
 
work.
 
During
 
the
 
year,
 
Wärtsilä
also
 
upgraded
 
the
 
power
 
output
 
of
 
the
 
Wärtsilä
 
31DF
 
dual-
fuel
 
engine,
 
further
 
heightening
 
the
 
engine’s
 
sustainability
factor
 
as
 
a
 
result
 
of
 
lower
 
greenhouse
 
gas
 
emissions,
 
while
allowing
 
a
 
reduction
 
in
 
both
 
installation
 
and
 
maintenance
costs.
As
 
the
 
shipping
 
industry
 
enters
 
a
 
new
 
era
 
of
 
innovation
 
and
unprecedented
 
efficiency,
 
Wärtsilä
 
is
 
using
 
high
 
levels
 
of
connectivity
 
and
 
digitalisation
 
to
 
bring
 
value
 
and
 
optimisation
to
 
all
 
marine
 
applications,
 
and
 
to
 
en
 
hance
 
the
 
efficiency,
sustainability
 
,
 
and
 
safety
 
of
 
customer
 
operations.
Achievements
 
in
 
the
 
field
 
of
 
smart
 
navigation
 
included
 
the
launch
 
of
 
Navi
 
-
 
Port,
 
a
 
new
 
solution
 
for
 
the
 
seamless
exchange
 
of
 
data
 
between
 
ship
 
and
 
shore
 
,
 
enabling
 
just
 
-in-
time
 
arrival
 
.
 
This
 
was
 
implemented
 
in
 
collaboration
 
with
Carnival
 
Maritime
 
and
 
the
 
Hamburg
 
Vessel
 
Coordination
Center
 
(HVCC).
 
Moreover,
 
Wärtsilä
 
Voyage
 
and
 
PSA
 
Marine
successfully
 
completed
 
initial
 
sea
 
trials
 
for
 
the
 
‘IntelliTug’
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
wartsila-2020-12-31p6i0
T
 
his
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
F
 
inancial
 
review
 
0,0
1,0
2,0
3,0
4,0
0
50
100
150
200
2016
2017
2018
2019
2020
%
MEUR
R&D
 
expenditure
Percentage
 
of
 
net
 
sales
project
 
in
 
Singapore,
 
thereby
 
proving
 
IntelliTug’s
 
capability
 
to
avoid
 
a
 
variety
 
of
 
obstacles,
 
including
 
virtual
 
and
 
real
 
-life
moving
 
vessels.
 
It
 
was
 
the
 
first
 
trial
 
to
 
use
 
the
 
Maritime
 
and
Port
 
Authority
 
of
 
Singapore
 
’s
 
(
 
MPA
 
)
 
Maritime
 
Autonomous
Surface
 
Ship
 
(
 
MASS
 
)
 
regulatory
 
sandbox,
 
which
 
was
established
 
to
 
facilitate
 
the
 
testing
 
of
 
MASS
 
and
 
other
autonomous
 
technologies
 
in
 
a
 
safe
 
and
 
controlled
environment
 
within
 
the
 
Port
 
of
 
Singapore.
 
Wärtsilä
 
also
successfully
 
trialled
 
the
 
Wärtsilä
 
SmartMove
 
Suite,
 
a
 
unique
pairing
 
of
 
sensor
 
tech
 
nology
 
with
 
navigation
 
systems
 
for
semi
 
-autonomous
 
ship
 
movement.
 
The
 
American
 
Steamship
Company
 
became
 
the
 
first
 
to
 
install
 
Wärtsilä
 
SmartMove
solutions
 
,
 
which
 
will
 
be
 
used
 
for
 
hands
 
-off
 
transit
 
along
 
the
Cuyahoga
 
River
 
in
 
Ohio,
 
US
 
A.
 
The
 
year
 
2020
 
also
 
saw
 
the
 
laun
 
ch
 
of
 
a
 
number
 
of
 
remote
support
 
services.
 
These
 
included
 
the
 
global
 
Smart
 
Support
Centre
 
service,
 
which
 
is
 
designed
 
to
 
deliver
 
operational
support
 
via
 
virtual
 
service
 
engineers
 
to
 
all
 
Wärtsilä
 
Voyage
equipment,
 
and
 
the
 
Assured
 
Operations
 
remote
 
support
se
 
rvice
 
for
 
Wärtsilä
 
4
 
-stroke
 
and
 
2
 
-stroke
 
engine
 
customers.
This
 
enables
 
technical
 
experts
 
to
 
assess
 
and
 
resolve
operational
 
issues
 
via
 
a
 
remote
 
connection
 
between
 
seagoing
vessels
 
and
 
Wärtsilä’s
 
Expertise
 
Centres.
 
During
 
the
 
year,
Wärtsilä
 
also
 
made
 
the
 
digital
 
predictive
 
maintenance
 
product
Expert
 
Insight
 
available
 
for
 
2
 
-stroke
 
engines
 
.
 
The
 
company
simultaneously
 
released
 
a
 
minimum
 
viable
 
product
 
for
 
remote
monitoring
 
of
 
scrubbers
 
to
 
provide
 
continuous
 
fleet
 
-wide
insight
 
into
 
vessel
 
compliance
 
and
 
scrubber
 
utilisation.
Moreover,
 
Wärtsilä
 
Voyage
 
expedited
 
the
 
launch
 
of
 
Wärtsilä’s
new
 
cloud
 
simulation
 
platform
 
to
 
enable
 
maritime
 
academies
and
 
seafarer
 
schools
 
to
 
continue
 
training
 
despite
 
the
lockdowns
 
and
 
distancing
 
imposed
 
by
 
the
 
COVID
 
-
 
19
outbreak.
 
The
 
solut
 
ion
 
was
 
selected
 
by
 
Anglo
 
-
 
Eastern
 
,
 
a
leading
 
ship
 
manage
 
ment
 
company,
 
to
 
provide
 
online
capacity
 
for
 
the
 
company’s
 
training
 
centres
 
in
 
India,
 
the
Philippines
 
,
 
and
 
Ukraine.
 
The
 
cloud
 
-based
 
simulators
 
are
being
 
used
 
for
 
navigation,
 
engineering,
 
and
 
liquid
 
cargo
handling
 
training.
Energy
In
 
line
 
with
 
its
 
aim
 
to
 
lead
 
the
 
transition
 
towards
 
a
 
100%
renewable
 
energy
 
future,
 
Wärtsilä
 
launched
 
the
 
Energy
Transition
 
Lab,
 
an
 
open
 
-data
 
platform
 
for
 
the
 
energy
 
industry
to
 
understand
 
the
 
impact
 
of
 
greater
 
utilisation
 
of
 
renewable
energy
 
and
 
the
 
effects
 
of
 
COVID
 
-19,
 
and
 
help
 
accelerate
 
the
energy
 
transition.
 
The
 
tool
 
provides
 
detailed
 
data
 
on
electricity
 
generation,
 
demand,
 
and
 
pricing
 
for
 
the
 
EU
countries
 
and
 
the
 
UK.
 
It
 
allows
 
users
 
to
 
model
 
how
 
systems
could
 
operate
 
in
 
the
 
future
 
with
 
more
 
renewables,
 
helping
 
to
pinpoint
 
problem
 
areas
 
and
 
highlighting
 
where
 
to
 
focus
policies
 
and
 
investments.
Key
 
achievements
 
in
 
the
 
advancement
 
of
 
engine
 
technology
included
 
Wärtsilä’s
 
highly
 
efficient
 
12
 
MWe
 
Wärtsilä
 
31SG
gas
 
-fuelled
 
generating
 
set
 
being
 
awarded
 
type
 
certification
 
by
the
 
classification
 
society
 
DNV
 
GL.
 
This
 
is
 
globally
 
the
 
largest
synchronous
 
generating
 
set
 
of
 
this
 
technology
 
to
 
have
 
been
awarded
 
the
 
unit
 
certificate
 
after
 
full
 
-scale
 
testing.
 
The
certification
 
verifies
 
the
 
design
 
and
 
engineering
 
standards
 
as
being
 
in
 
full
 
compliance
 
with
 
Germany’s
 
grid
 
code
requirements,
 
the
 
first
 
country
 
in
 
Europe
 
to
 
have
 
implemented
guidelines
 
for
 
grid
 
code
 
compliance,
 
although
 
other
 
countries
have
 
already
 
or
 
are
 
in
 
the
 
process
 
of
 
requiring
 
similar
compliance.
 
Wärtsilä
 
also
 
announced
 
during
 
the
 
year
 
that
 
it
 
is
developing
 
the
 
combustion
 
process
 
in
 
its
 
gas
 
engines
 
to
enable
 
them
 
over
 
time
 
to
 
burn
 
100%
 
hydrogen
 
fuel.
 
Wärtsilä
has
 
researched
 
hydrogen
 
as
 
a
 
fuel
 
for
 
20
 
years,
 
and
 
has
tested
 
its
 
engines
 
with
 
blends
 
of
 
up
 
to
 
60%
 
hydrogen
 
and
40%
 
natural
 
gas.
 
This
 
development
 
is
 
part
 
of
 
the
 
company’s
strategy
 
to
 
future
 
-proof
 
its
 
engine
 
technology
 
in
 
line
 
with
 
the
global
 
trend
 
towards
 
decarbonisation
 
of
 
the
 
energy
 
and
marine
 
markets.
 
In
 
addition
 
to
 
hydrogen,
 
other
 
potential
renewable
 
fuels
 
are
 
being
 
studied
 
for
 
future
 
applications.
Wärtsilä
 
engines
 
are
 
already
 
capable
 
of
 
combusting
 
100%
synthetic
 
carbon
 
-neutral
 
methane
 
and
 
methanol.
Developments
 
in
 
the
 
area
 
of
 
Power
 
-to
 
-
 
X
 
included
 
funding
granted
 
by
 
Business
 
Finland
 
for
 
the
 
X-Ahead
 
project,
 
as
 
well
as
 
an
 
agreement
 
with
 
Vantaa
 
Energy
 
Ltd.
 
regarding
 
a
 
joint
concept
 
feasibility
 
study
 
for
 
a
 
power
 
-to
 
-gas
 
facility
 
at
 
Vantaa
Energy’s
 
waste
 
-to
 
-energy
 
plant
 
in
 
the
 
city
 
of
 
Vantaa.
 
The
 
X-
Ahead
 
project
 
aims
 
at
 
developing
 
deep
 
expertise
 
in
 
both
 
the
technical
 
and
 
business
 
potential
 
of
 
Power
 
-to
 
-X,
 
which
 
will
 
be
used
 
to
 
promote
 
a
 
carbon
 
-neutral
 
economy
 
in
 
Finland.
 
It
 
will
also
 
act
 
as
 
a
 
base
 
for
 
defining
 
Wärtsilä’s
 
role
 
in
 
this
 
field
 
as
part
 
of
 
the
 
g
 
lobal
 
transition
 
to
 
carbon
 
-neutral
 
solutions.
Vantaa
 
Energy’s
 
power
 
-to
 
-
 
gas
 
facility
 
would
 
produce
 
carbon-
neutral
 
synthetic
 
biogas
 
using
 
carbon
 
dioxide
 
emissions
 
and
electricity
 
generated
 
at
 
the
 
waste
 
-to
 
-energy
 
plant.
 
The
purpose
 
of
 
the
 
joint
 
study
 
is
 
to
 
confirm
 
the
 
optimal
 
size
 
of
 
the
project
 
and
 
the
 
cost
 
of
 
synthetic
 
biogas
 
for
 
district
 
heating,
 
as
well
 
as
 
to
 
understand
 
the
 
boundary
 
conditions
 
for
 
project
feasibility.
Research
 
and
 
development
 
expenditure
 
Strategic
 
projects
In
 
February,
 
Wärtsilä
 
and
 
DNV
 
GL
 
agreed
 
to
 
work
 
together
 
to
contribute
 
to
 
the
 
marine
 
industry’s
 
ongoing
 
digital
transformation.
 
In
 
particular,
 
the
 
two
 
companies
 
wish
 
to
further
 
explore
 
the
 
potential
 
use
 
of
 
digital
 
technologies,
collaborative
 
data
 
sharing,
 
and
 
standardisation
 
to
 
enhance
the
 
performance
 
of
 
existing
 
products
 
and
 
services,
 
and
 
to
develop
 
new
 
ones.
 
The
 
project
 
will
 
examine
 
the
 
application
 
of
digital
 
technologies
 
in
 
areas
 
such
 
as
 
autonomous
 
ships,
T
 
his
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
F
 
inancial
 
review
 
advanced
 
remote
 
services,
 
new
 
bridge
 
technologies,
 
and
data
 
sharing.
 
Cyber
 
security
 
will
 
be
 
another
 
natural
 
area
 
of
co
 
-operation.
 
In
 
March,
 
Wärtsilä
 
together
 
with
 
a
 
consortium
 
of
 
six
 
other
industry
 
and
 
academic
 
partners,
 
was
 
awarded
 
EU
 
funding
 
for
a
 
major
 
project
 
named
 
SeaTech.
 
The
 
project
 
is
 
aimed
 
at
reducing
 
fuel
 
consumption
 
and
 
lowering
 
emission
 
levels
 
for
shipping
 
by
 
developing
 
ship
 
engine
 
and
 
propulsion
 
systems
to
 
enable
 
precise
 
control
 
of
 
the
 
engine
 
and
 
capturing
 
wave
energy
 
to
 
produce
 
extra
 
thrust.
 
Wärtsilä
 
also
 
signed
 
a
 
licence
and
 
co
 
-operation
 
agreement
 
covering
 
the
 
future
 
development,
sales,
 
and
 
servicing
 
of
 
gate
 
rudders
 
with
 
Kuribayashi
Steamship
 
in
 
Japan.
 
As
 
an
 
authorised
 
license
 
holder
 
and
partner,
 
Wärtsilä
 
intends
 
to
 
fully
 
integrate
 
gate
 
rudders
 
within
its
 
propulsion
 
product
 
designs
 
and
 
will
 
focus
 
on
 
global
markets
 
outside
 
Japan.
 
Gate
 
rudder
 
technology
 
lowers
 
fuel
consumption
 
and
 
reduces
 
emissions,
 
while
 
improving
manoeuvrability
 
and
 
course
 
stability
 
in
 
both
 
calm
 
and
 
rough
seas.
In
 
June,
 
Wärtsilä
 
joined
 
a
 
global
 
consortium
 
to
 
develop
 
the
Mayflower
 
Autonomous
 
ship
 
project,
 
which
 
will
 
enable
 
the
world’s
 
first
 
fully
 
autonomous,
 
unmanned
 
vessel
 
to
 
cross
 
the
Atlantic.
 
Wärtsilä
 
Voyage
 
will
 
equip
 
the
 
ship
 
with
 
the
 
Wärtsilä
RS24
 
system,
 
a
 
ground
 
-breaking
 
high
 
-speed,
 
high
 
-resolution
FMCW
 
K-
 
Band
 
radar
 
designed
 
to
 
provide
 
optimised
 
levels
 
of
situational
 
awareness,
 
especially
 
in
 
densely
 
populated
 
marine
environments.
 
Wärtsilä
 
also
 
joined
 
ING
 
Bank,
 
Engie,
 
and
 
the
Port
 
of
 
Rotterdam
 
Authority
 
to
 
form
 
Zero
 
Emission
 
Services
B.V.
 
(ZES),
 
an
 
enterprise
 
aimed
 
at
 
making
 
inland
 
waterway
shipping
 
more
 
sustainable.
 
The
 
concept
 
is
 
based
 
on
 
the
 
use
of
 
replaceable
 
battery
 
containers
 
charged
 
with
 
renewable
energy.
 
It
 
will
 
be
 
utilised
 
,
 
among
 
others,
 
by
 
the
 
Heineken
 
beer
company
 
and
 
is
 
supported
 
by
 
the
 
Dutch
 
Ministry
 
of
Infrastructure
 
and
 
Water
 
Managem
 
ent.
In
 
July,
 
Wärtsilä
 
joined
 
a
 
global
 
coalition
 
dedicated
 
to
accelerating
 
the
 
energy
 
transition
 
in
 
the
 
transport
 
and
logistics
 
industries,
 
together
 
with
 
a
 
cluster
 
of
 
market
 
-leading
companies
 
representing
 
a
 
broad
 
spectrum
 
of
 
industry
stakeholders.
 
The
 
aim
 
of
 
the
 
coalition
 
is
 
to
 
drive
 
the
development
 
of
 
energy
 
sources
 
and
 
technologies
 
in
 
order
 
to
curb
 
global
 
warming,
 
reduce
 
air
 
pollution,
 
and
 
protect
biodiversity.
 
The
 
members
 
will
 
pool
 
their
 
R&D
 
efforts
 
in
pursuit
 
of
 
three
 
key
 
goals:
 
unlocking
 
a
 
more
 
extensive
portfolio
 
of
 
clean
 
energy
 
sources,
 
lowering
 
energy
consumption
 
per
 
kilometre
 
-equivalent
 
for
 
transported
 
goods
 
,
and
 
eliminating
 
a
 
substantial
 
proportion
 
of
 
the
 
harmful
emissions
 
being
 
released
 
into
 
the
 
atmosphere.
In
 
October,
 
Wärtsilä
 
signed
 
a
 
Memorandum
 
of
 
Understanding
(MoU)
 
tied
 
to
 
a
 
license
 
and
 
c
 
o
 
-operation
 
agreement
 
with
 
the
UK
 
-based
 
Anemoi
 
Marine
 
Technologies
 
for
 
the
 
future
 
sales
and
 
servicing
 
of
 
rotor
 
sail
 
solutions
 
to
 
the
 
shipping
 
industry.
Rotor
 
s
 
ails
 
are
 
comprised
 
of
 
vertical
 
cylinders
 
which,
 
when
driven
 
to
 
rotate,
 
harness
 
the
 
renewable
 
power
 
of
 
the
 
wind
 
to
propel
 
ships.
 
These
 
highly
 
efficient
 
mechanical
 
sails
 
will
provide
 
additional
 
thrust
 
to
 
vessels
 
and
 
deliver
 
significant
 
fuel
and
 
emission
 
savings.
 
Wärtsilä
 
will
 
fully
 
integrate
 
Anemoi
Marine
 
Technologies’
 
rotor
 
s
 
ails
 
within
 
its
 
p
 
ropulsion
 
business
and
 
promote
 
the
 
solution
 
for
 
both
 
newbuild
 
projects
 
and
 
for
retrofitting
 
to
 
existing
 
ships.
In
 
December,
 
Wärtsilä
 
joined
 
the
 
CHEK
 
project
 
which
 
aims
 
to
achieve
 
zero
 
emission
 
s
 
shipping.
 
The
 
project
 
will
 
develop
 
and
demonstrate
 
a
 
wind
 
energy
 
optimised
 
bulk
 
carrier
 
,
 
and
 
a
hydrogen
 
powered
 
cruise
 
ship
 
equipped
 
with
 
a
 
combination
 
of
innovative
 
technologies
 
to
 
reduce
 
greenhouse
 
gas
 
emissions
by
 
99%,
 
achieve
 
at
 
least
 
50%
 
energy
 
savings
 
,
 
and
 
reduce
black
 
carbon
 
emissions
 
by
 
over
 
95%.
 
The
 
CHEK
 
partners
 
are
the
 
University
 
of
 
Vaasa
 
(coordinator),
 
Wärtsilä,
 
Cargill
International,
 
MSC
 
Cruises,
 
Lloyd’s
 
Register,
 
the
 
World
Maritime
 
University,
 
Silverstream
 
Technologies,
 
HASYTEC
Electronics,
 
Deltamarin,
 
Climeon
 
,
 
and
 
BAR
 
Technologies.
Capacity
 
adjustments
In
 
March,
 
Wärtsilä
 
announced
 
that
 
proactive
 
steps
 
would
 
be
taken
 
to
 
minimise
 
the
 
negative
 
business
 
impact
 
of
 
the
COVID
 
-19
 
pandemic
 
and
 
the
 
measures
 
initiated
 
to
 
contain
 
it.
These
 
include
 
d
 
reducing
 
working
 
hours
 
and
 
initiating
temporary
 
layoffs,
 
as
 
well
 
as
 
streamlining
 
hiring
 
and
minimising
 
the
 
use
 
of
 
external
 
personnel
 
and
 
consultants.
Discretionary
 
spending
 
was
 
also
 
reduced
 
and
 
non
 
-critical
development
 
projects
 
postponed.
 
Decisions
 
on
 
temporary
cost
 
reduction
 
actions
 
were
 
taken
 
in
 
key
 
countries
 
where
such
 
measures
 
were
 
deemed
 
necessary.
 
The
 
actions
 
taken
resulted
 
in
 
temporary
 
cost
 
savings
 
of
 
approximately
 
EUR
 
100
million
 
being
 
recognised
 
during
 
the
 
year,
 
which
 
was
 
in
 
line
with
 
initial
 
expectations
.
The
 
market
 
situation
 
is
 
continuously
monitored
 
,
 
and
 
further
 
actions
 
will
 
be
 
taken
 
as
 
needed.
 
Changes
 
in
 
organisational
 
structure
Wärtsilä’s
 
new
 
organisational
 
structure
 
became
 
operational
on
 
1
 
July
 
2020.
 
With
 
the
 
new
 
structure,
 
Wärtsilä
 
aims
 
to
accelerate
 
strategy
 
execution
 
and
 
drive
 
long
 
-term
performance.
 
Marine
 
Power,
 
Marine
 
Systems,
 
and
 
Energy
 
will
focus
 
on
 
delivering
 
profitable
 
growth
 
by
 
strengthening
 
their
offering
 
of
 
solutions
 
and
 
lifecycle
 
value
 
propositions.
Established
 
through
 
the
 
combination
 
of
 
acquisitions
 
during
the
 
past
 
few
 
years,
 
notably
 
Eniram
 
and
 
more
 
recently
Transas,
 
Voyage
 
positions
 
Wärtsilä
 
as
 
a
 
market
 
leader
 
in
digital
 
solutions
 
for
 
the
 
commercial
 
marine
 
industry.
 
Voyage’s
focus
 
will
 
be
 
on
 
scaling
 
and
 
developing
 
the
 
business,
 
with
 
the
support
 
of
 
continued
 
investments
 
in
 
R&D,
 
sales
 
and
marketing,
 
in
 
order
 
to
 
create
 
a
 
basis
 
for
 
sustainable,
profitable
 
growth
 
over
 
the
 
long
 
-term.
 
Portfolio
 
Business
 
is
 
run
as
 
an
 
independent
 
entity,
 
with
 
the
 
objective
 
of
 
unlocking
 
the
value
 
of
 
business
 
units
 
that
 
are
 
not
 
central
 
to
 
Wärtsilä’s
strategy.
 
Personnel
Wärtsilä
 
had
 
17,792
 
(18,795)
 
employees
 
at
 
the
 
end
 
of
 
the
year.
 
On
 
average,
 
the
 
number
 
of
 
personnel
 
totalled
 
18,307
(19,110)
 
in
 
the
 
year
 
of
 
2020
 
.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
wartsila-2020-12-31p8i0
T
 
his
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
F
 
inancial
 
review
 
0
5
 
000
10
 
000
15
 
000
20
 
000
2016
2017
2018
2019
2020
Personnel
 
at
 
the
 
end
 
of
 
the
 
financial
 
period
Personnel
 
on
 
average
Personnel
 
in
 
Finland
Of
 
Wärtsilä’s
 
total
 
number
 
of
 
employees,
 
21%
 
(20)
 
were
located
 
in
 
Finland
 
and
 
41%
 
(42)
 
elsewhere
 
in
 
Europe.
Personnel
 
employed
 
in
 
Asia
 
represented
 
22%
 
(23)
 
of
 
the
total,
 
personnel
 
in
 
the
 
Americas
 
11%
 
(11),
 
and
 
personnel
 
in
other
 
countries
 
5%
 
(4).
Personnel
Changes
 
in
 
management
 
In
 
addition
 
to
 
the
 
appointment
 
of
 
a
 
new
 
President
 
and
 
CEO,
the
 
below
 
changes
 
in
 
Wärtsilä’s
 
Board
 
of
 
Management
 
took
place
 
during
 
2020
 
:
Following
 
the
 
announcement
 
that
 
Wärtsilä’s
 
Marine
 
Business
would
 
be
 
reorganised
 
into
 
three
 
independent
 
businesses,
Roger
 
Holm
 
(b.
 
1972,
 
M.Sc.
 
Economics),
 
previously
 
the
President
 
of
 
Wärtsilä
 
Marine
 
Business
 
and
 
Executive
 
Vice
President,
 
was
 
appointed
 
President
 
of
 
Wärtsilä
 
Marine
 
Power
and
 
Executive
 
Vice
 
President
 
as
 
of
 
5
 
March
 
2020,
 
Tamara
 
de
Gruyter
 
(b.
 
1972,
 
B.Sc.
 
Shipbuilding
 
Engineering)
 
was
appointed
 
President
 
of
 
Wärtsilä
 
Marine
 
Systems
 
and
Executive
 
Vice
 
President
 
as
 
of
 
5
 
March
 
2020,
 
and
 
Sean
Fernback
 
(b.
 
1963,
 
Dipl.
 
Electronics
 
Engineering)
 
was
appointed
 
President
 
of
 
Wärtsilä
 
Voyage
 
and
 
Executive
 
Vice
President
 
as
 
of
 
4
 
May
 
2020.
In
 
July,
 
Sushil
 
Purohit
 
(b.
 
1972,
 
B.Sc.
 
(Eng.),
 
MBA)
 
was
appointed
 
President
 
of
 
Wärtsilä
 
Energy
 
and
 
Executive
 
Vice
President
 
as
 
of
 
3
 
August
 
2020.
 
He
 
replaced
 
Marco
 
Wirén,
who
 
left
 
Wärtsilä
 
on
 
31
 
August
 
2020
 
for
 
a
 
position
 
outside
 
the
Group.
 
Non
 
-
 
financial
 
report
 
Increasing
 
environmental
 
awareness
 
is
 
resulting
 
in
fundamental
 
changes
 
in
 
both
 
the
 
marine
 
and
 
energy
industries.
 
Thanks
 
to
 
its
 
various
 
technologies
 
and
 
specialised
services,
 
Wärtsilä
 
is
 
well
 
positioned
 
to
 
reduce
 
exhaust
emissions
 
and
 
the
 
use
 
of
 
natural
 
resources,
 
as
 
well
 
as
 
to
support
 
its
 
customers
 
in
 
preparing
 
for
 
new
 
regulatory
requirements.
 
Wärtsilä’s
 
R&D
 
efforts
 
continue
 
to
 
focus
 
on
 
the
development
 
of
 
advanced
 
environmental
 
technologies
 
and
solutions.
 
The
 
company
 
is
 
committed
 
to
 
supporting
 
the
 
UN
Global
 
Compact
 
and
 
its
 
principles
 
with
 
respect
 
to
 
human
rights,
 
labour,
 
the
 
environment,
 
and
 
anti
 
-corruption.
 
Wärtsilä
is
 
also
 
committed
 
to
 
supporting
 
the
 
UN
 
Sustainable
Development
 
Goals
 
that
 
deal
 
with
 
issues
 
to
 
which
 
Wärtsilä
contributes
 
in
 
a
 
positive
 
way.
 
Such
 
goals
 
include
 
those
relate
 
d
 
to
 
clean
 
energy,
 
a
 
low
 
-carbon
 
marine
 
ecosystem,
 
and
responsible
 
business
 
conduct.
 
Responsible
 
business
 
conduct
 
The
 
Wärtsilä
 
Code
 
of
 
Conduct
 
defines
 
common
 
rules
 
for
 
all
employees,
 
and
 
provides
 
guidance
 
on
 
Wärtsilä’s
 
approach
 
to
responsible
 
business
 
practices.
 
The
 
Code
 
of
 
Conduct
 
is
complemented
 
by
 
group
 
-wide
 
policies,
 
including
 
the
 
quality,
environmental,
 
health
 
and
 
safety
 
policy,
 
the
 
corporate
 
policy
on
 
equal
 
opportunities
 
and
 
fair
 
employment
 
practices,
 
as
 
well
as
 
policies
 
related
 
to
 
anti
 
-corruption,
 
compliance
 
reporting,
and
 
sourcing
 
and
 
purchasing.
 
Wärtsilä
 
takes
 
an
 
active
 
approach
 
to
 
the
 
application
 
of
 
the
Code
 
of
 
Conduct
 
and
 
promotes
 
its
 
implementation
 
through
the
 
effective
 
communication
 
of
 
its
 
contents
 
to
 
its
 
employees.
Wärtsilä
 
monitors
 
the
 
application
 
of
 
the
 
Code
 
internally
 
to
ensure
 
understanding
 
and
 
commitment
 
throughout
 
the
organisation.
 
At
 
the
 
end
 
of
 
2020,
 
17,039
 
employees,
 
covering
9
 
6
 
%
 
of
 
the
 
total
 
number
 
of
 
employees,
 
had
 
participated
 
in
 
the
Code
 
of
 
Conduct
 
training
 
programme.
 
Suppliers
 
and
 
business
 
partners
 
are
 
an
 
integral
 
part
 
of
 
the
total
 
value
 
chain
 
of
 
the
 
products
 
and
 
services
 
of
 
Wärtsilä.
They
 
are
 
expected
 
to
 
conduct
 
their
 
businesses
 
in
 
compliance
with
 
the
 
same
 
high
 
legal
 
and
 
ethical
 
standards
 
and
 
business
practices
 
as
 
Wärtsilä.
 
Information
 
on
 
Wärtsilä’s
 
requirements
is
 
included
 
in
 
supplier
 
agreement
 
templates.
Environmental
 
performance
 
Wärtsilä’s
 
main
 
contribution
 
to
 
improved
 
environmental
performance
 
lies
 
in
 
providing
 
its
 
customers
 
with
 
reliable
 
and
safe
 
technologies
 
and
 
services,
 
which,
 
in
 
addition
 
to
 
enabling
environmental
 
compliance,
 
support
 
the
 
sustainable
development
 
of
 
the
 
marine
 
and
 
energy
 
industries.
 
Wärtsilä’s
products
 
and
 
solutions
 
are
 
designed
 
to
 
operate
 
for
 
up
 
to
 
30
years.
 
Therefore,
 
focusing
 
R&D
 
efforts
 
on
 
improving
 
the
product
 
or
 
system
 
level
 
performance
 
is
 
crucial,
 
as
 
is
 
adopting
a
 
lifecycle
 
approach
 
to
 
performance
 
optimisation.
 
In
 
addition
to
 
improving
 
the
 
environmental
 
performance
 
of
 
its
 
product
 
s
and
 
solutions,
 
Wärtsilä
 
also
 
continuously
 
monitors
 
the
 
impact
caused
 
by
 
its
 
own
 
activities
 
and
 
targets
 
reduced
 
energy
consumption
 
in
 
its
 
facilities.
 
Wärtsilä's
 
quality,
 
environmental,
 
health
 
and
 
safety
 
policy
sets
 
principles
 
for
 
managing
 
the
 
environmental
 
impacts
 
of
Wärtsilä’s
 
products
 
and
 
services.
 
The
 
potential
 
risks
 
related
to
 
environmental
 
matters
 
and
 
climate
 
change
 
are
 
in
 
the
 
areas
of
 
regulatory
 
emission
 
restrictions
 
and
 
changes
 
in
 
customer
attitudes
 
to
 
using
 
combustion
 
engines
 
and
 
fossil
 
fuels.
 
Risks
are
 
managed
 
by
 
focusing
 
on
 
product
 
efficiency
 
improvement
and
 
emission
 
reduction
 
in
 
R&D
 
activities,
 
as
 
well
 
as
 
by
developing
 
a
 
wide
 
product
 
offering,
 
including
 
technologies
related
 
to
 
waste
 
reduction,
 
noise
 
abatement,
 
and
 
effluent
 
and
T
 
his
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
F
 
inancial
 
review
 
ballast
 
water
 
treatment
 
.
 
During
 
2020,
 
R&D
 
investments
totalled
 
EUR
 
153
 
million,
 
w
 
hich
 
represents
 
3.3%
 
of
 
net
 
sales.
The
 
majority
 
of
 
these
 
investments
 
targeted
 
improved
environmental
 
performance.
 
Significant
 
achievements
 
related
to
 
sustainable
 
innovation
 
included
 
the
 
progress
 
made
 
in
developing
 
engine
 
technology
 
to
 
burn
 
zero
 
-carbon
 
fuels.
 
For
the
 
marine
 
markets,
 
Wärtsilä
 
launched
 
several
 
solutions
 
in
support
 
of
 
its
 
Smart
 
Marine
 
Ecosystem
 
vision,
 
including
solutions
 
for
 
smart
 
navigation,
 
a
 
number
 
of
 
remote
 
support
services,
 
as
 
well
 
as
 
a
 
cloud
 
simulation
 
platform
 
enabling
remote
 
training.
 
In
 
the
 
energy
 
sector,
 
Wärtsilä
 
introduced
 
the
GridSolv
 
Quantum
 
energy
 
storage
 
system,
 
a
 
fully
 
integrated
modular
 
and
 
compact
 
solution
 
that
 
enables
 
the
 
rapid
deployment
 
of
 
cost
 
-effective
 
energy
 
storage,
 
as
 
well
 
as
 
data-
based
 
solutions
 
to
 
better
 
understand
 
the
 
impact
 
of
 
the
 
energy
transition.
Social
 
and
 
employee
 
matters
 
Wärtsilä
 
is
 
a
 
responsible
 
employer,
 
offering
 
employees
 
a
workplace
 
where
 
openness,
 
respect,
 
trust,
 
equal
opportunities,
 
and
 
scope
 
for
 
personal
 
development
 
prevail.
Wärtsilä
 
is
 
a
 
signatory
 
of
 
the
 
UN
 
Global
 
Compact
 
initiative
and
 
supports
 
the
 
work
 
-related
 
rights
 
defined
 
by
 
the
International
 
Labour
 
Organization
 
(ILO).
 
Wärtsilä's
 
corporate
policy
 
on
 
equal
 
opportunities
 
and
 
fair
 
employment
 
practices
creates
 
a
 
common
 
framework
 
for
 
employee
 
practices
 
in
 
all
Wärtsilä
 
companies.
 
People
 
management
 
processes,
 
tools,
and
 
ways
 
of
 
working
 
are
 
developed
 
to
 
ensure
 
consistency
across
 
national
 
and
 
organisational
 
boundaries.
 
Wärtsilä
 
has
 
a
global
 
job
 
grading
 
system
 
and
 
rewarding
 
principles
 
to
 
ensure
transparency
 
and
 
fairness
 
for
 
all
 
employees,
 
which
 
are
followed
 
by
 
all
 
the
 
entities
 
in
 
Wärtsilä
 
globally.
 
The
 
objective
 
of
 
Wärtsilä’s
 
people
 
management
 
strategy
 
is
 
to
ensure
 
that
 
the
 
businesses
 
have
 
the
 
required
 
resources,
 
and
skilled
 
and
 
motivated
 
people
 
at
 
their
 
disposal.
 
In
 
order
 
to
develop
 
their
 
competences,
 
employees
 
are
 
offered
 
a
 
wide
variety
 
of
 
internal
 
training
 
courses,
 
including
 
topics
 
like
technology,
 
health
 
and
 
safety,
 
language
 
and
 
culture,
 
project
management,
 
environment,
 
security,
 
and
 
leadership.
 
The
avera
 
ge
 
number
 
of
 
learning
 
days
 
was
 
1.1
 
per
 
employee
 
in
2020.
 
Wärtsilä
 
aims
 
at
 
offering
 
its
 
employees
 
and
 
contractors
 
a
hazard
 
-free
 
working
 
environment,
 
and
 
at
 
minimising
 
the
health
 
and
 
safety
 
risks
 
associated
 
with
 
the
 
use
 
of
 
its
 
products
and
 
services.
 
The
 
company’s
 
occupational
 
health
 
and
 
safety
principles
 
are
 
defined
 
in
 
the
 
Code
 
of
 
Conduct,
 
the
 
quality,
environmental,
 
health
 
and
 
safety
 
(QEHS)
 
policy,
 
and
 
in
 
the
directive
 
on
 
environment,
 
health,
 
and
 
safety
 
(EHS).
 
Wärtsilä's
units
 
are
 
required
 
to
 
have
 
a
 
management
 
system
 
in
 
place
 
that
conforms
 
to
 
the
 
QEHS
 
Policy
 
and
 
the
 
EHS
 
directive.
 
In
addition
 
to
 
the
 
management
 
system,
 
Wärtsilä
 
companies
apply
 
occupational
 
health
 
and
 
safety
 
programmes
 
as
 
required
by
 
local
 
legislation.
 
Wärtsilä’s
 
aim
 
is
 
to
 
reach
 
a
 
long
 
-term
 
goal
of
 
zero
 
injuries.
 
In
 
2020,
 
the
 
corporate
 
lost
 
-time
 
injury
frequency
 
rate
 
was
 
2.03
 
(2.25).
 
Respect
 
for
 
human
 
rights
Wärtsilä
 
supports
 
and
 
respects
 
basic
 
human
 
values
 
as
outlined
 
in
 
the
 
UN's
 
universal
 
declaration
 
of
 
human
 
rights.
Wärtsilä
 
is
 
also
 
a
 
signatory
 
of
 
the
 
UN
 
Global
 
Compact
 
and
 
is
thereby
 
committed
 
to
 
its
 
principles
 
with
 
respect
 
to
 
human
rights,
 
labour,
 
the
 
environment
 
,
 
and
 
anti
 
-corruption.
 
No
employee
 
is
 
allowed
 
to
 
take
 
any
 
action
 
that
 
violates
 
these
human
 
rights
 
principles,
 
either
 
directly
 
or
 
indirectly.
 
Wärtsilä
does
 
not
 
accept
 
the
 
use
 
of
 
forced
 
labour
 
or
 
child
 
labour
 
in
 
any
form.
 
Human
 
and
 
labour
 
rights
 
are
 
a
 
part
 
of
 
the
 
Code
 
of
Conduct
 
training
 
material,
 
and
 
are
 
included
 
in
 
Wärtsilä’s
policy
 
on
 
equal
 
opportunities
 
and
 
fair
 
employment
 
practices
as
 
well
 
as
 
in
 
the
 
company’s
 
supplier
 
handbook.
 
Anti
 
-
 
corruption
 
and
 
bribery
 
matters
Wärtsilä's
 
Code
 
of
 
Conduct,
 
anti
 
-corruption
 
policy,
 
and
 
broker
directive
 
expressly
 
prohibit
 
the
 
company
 
and
 
its
 
employees
from
 
offering
 
or
 
accepting
 
any
 
kind
 
of
 
benefit
 
considered
 
a
bribe
 
and
 
from
 
taking
 
actions
 
that
 
could
 
give
 
rise
 
to
 
a
 
conflict
of
 
interest
 
or
 
breach
 
of
 
loyalty.
 
The
 
instructions
 
make
 
it
compulsory
 
to
 
comply
 
with
 
anti
 
-corruption
 
laws
 
of
 
all
 
the
countries
 
in
 
which
 
Wärtsilä
 
does
 
or
 
intends
 
to
 
do
 
business
and
 
urge
 
the
 
reporting
 
of
 
any
 
cases
 
of
 
corruption
 
and
 
bribery.
 
Wärtsilä
 
is
 
aware
 
of
 
the
 
risk
 
of
 
being
 
subject
 
to
 
fraud
 
by
external
 
business
 
parties,
 
and
 
that
 
the
 
risk
 
of
 
corruption
 
and
fraud
 
is
 
heightened
 
in
 
many
 
markets
 
where
 
the
 
company
operates.
 
Therefore
 
,
 
full
 
compliance
 
with
 
a
 
stringent
 
anti-
corruption
 
regime
 
is
 
required
 
of
 
all
 
employees.
 
An
 
extensive
training
 
programme
 
is
 
in
 
place
 
for
 
personnel
 
on
 
anti-
corruption
 
principles
 
and
 
applicable
 
legislation
 
as
 
well
 
as
 
the
relevant
 
company
 
policies
 
and
 
procedur
 
es.
 
By
 
the
 
end
 
of
2020,
 
93%
 
of
 
Wärtsilä’s
 
employees
 
had
 
participated
 
in
 
anti-
corruption
 
trainings.
 
Employees
 
are
 
encouraged
 
to
 
provide
feedback
 
and
 
communicate
 
suspected
 
misconduct
 
to
 
line
management
 
or
 
directly
 
to
 
the
 
Compliance,
 
L
 
egal
 
A
 
ffairs
 
,
 
or
Interna
 
l
 
Audit
 
function.
 
Wärtsilä
 
also
 
has
 
a
 
dedicated
 
tool
through
 
which
 
employees
 
can
 
report
 
infringements.
Reporting
 
segments
Wärtsilä
 
Marine
 
Power
Marine
 
Power’s
 
o
 
rder
 
intake
 
in
 
2020
 
decreased
 
by
 
23%
 
to
EUR
 
1,737
 
million
 
(2,247)
 
compared
 
to
 
the
 
previous
 
year.
Book
 
-to
 
-bill
 
was
 
0.99
 
(1.17).
 
Service
 
order
 
intake
 
decreased
by
 
19%
 
to
 
EUR
 
1,070
 
million
 
(1,315),
 
with
 
the
 
largest
 
decline
seen
 
in
 
the
 
cruise
 
segment
 
where
 
vessel
 
utilisation
 
remained
low
 
throughout
 
the
 
year.
 
Equipment
 
order
 
intake
 
decreased
by
 
28%
 
to
 
EUR
 
667
 
million
 
(931).
 
Demand
 
was
 
the
 
highest
 
in
the
 
merchant
 
segment
 
which,
 
including
 
both
 
traditional
merchant
 
vessels
 
and
 
gas
 
carriers,
 
represented
 
35%
 
and
42%
 
of
 
the
 
order
 
intake
 
of
 
equipment
 
and
 
services,
respectively.
 
Orders
 
received
 
from
 
this
 
segment
 
included
 
a
sizeable
 
order
 
to
 
supply
 
dual
 
-fuel
 
engines
 
to
 
six
 
new
 
LNG
vessels
 
and
 
a
 
contract
 
to
 
supply
 
a
 
fully
 
integrated
 
Wärtsilä
hybrid
 
solution
 
for
 
Misje
 
Rederi’s
 
three
 
newbuild
 
eco
 
-friendly
5,000
 
DWT
 
bulk
 
carriers.
 
Other
 
noteworthy
 
orders
 
included
 
a
contract
 
to
 
supply
 
the
 
engines
 
and
 
a
 
range
 
of
 
electric
solutions
 
for
 
two
 
new
 
ferries
 
under
 
construction
 
for
 
Finnlines,
as
 
well
 
as
 
a
 
contract
 
to
 
supply
 
Wärtsilä
 
14
 
EUR
 
Stage
 
V
T
 
his
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
F
 
inancial
 
review
 
compliant
 
engines
 
and
 
related
 
emissions
 
control
 
after-
treatment
 
systems
 
for
 
two
 
new
 
passenger
 
ferries
 
being
 
built
for
 
operation
 
between
 
Switzerland
 
and
 
France.
 
The
 
order
book
 
at
 
the
 
end
 
of
 
the
 
year
 
decreased
 
by
 
9%
 
to
 
EUR
 
1,839
million
 
(2,019).
 
Net
 
sales
 
decreased
 
by
 
9%
 
to
 
EUR
 
1,748
 
million
 
(1,923)
compared
 
to
 
the
 
previous
 
year.
 
Service
 
net
 
sales
 
decreased
by
 
14%
 
to
 
EUR
 
1,096
 
million
 
(1,279),
 
while
 
equipment
 
net
sales
 
increased
 
by
 
1%
 
to
 
EUR
 
652
 
million
 
(643).
 
The
comparable
 
operating
 
result
 
amounted
 
to
 
EUR
 
137
 
million
(273)
 
or
 
7.8%
 
of
 
net
 
sales
 
(14.2).
The
 
result
 
was
 
burdened
 
by
the
 
COVID
 
-19
 
related
 
decline
 
in
 
the
 
service
 
business
 
,
 
as
 
well
as
 
by
 
weaker
 
absorption
 
of
 
fixed
 
costs
 
and
 
lower
 
utilisation.
 
Wärtsilä
 
Marine
 
Systems
Marine
 
Systems’
 
o
 
rder
 
intake
 
in
 
2020
 
decreased
 
by
 
28%
 
to
EUR
 
539
 
million
 
(754
 
)
 
compared
 
to
 
the
 
previous
 
year
,
 
as
reduced
 
fuel
 
spreads
 
scaled
 
back
 
scrubber
 
investments
.
Book
 
-to
 
-bill
 
was
 
0.67
 
(0.79).
 
Service
 
order
 
intake
 
decreased
by
 
11%
 
to
 
EUR
 
205
 
million
 
(230).
 
Equipment
 
order
 
intake
decreased
 
by
 
36%
 
to
 
EUR
 
334
 
million
 
(523).
 
Noteworthy
orders
 
received
 
during
 
the
 
year
 
included
 
the
 
first
 
order
 
for
 
the
Compact
 
Reliq
 
reliquefaction
 
plant,
 
a
 
system
 
designed
 
to
reliquefy
 
boil
 
-off
 
gas
 
(BOG)
 
onboard
 
gas
 
carriers
 
and
 
LNG
bunker
 
vessels
 
and
 
keep
 
the
 
cargo
 
cool
 
under
 
all
 
operational
conditions.
 
Wärtsilä
 
also
 
received
 
a
 
major
 
contract
 
to
 
supply
and
 
construct
 
a
 
plant
 
for
 
the
 
production
 
of
 
CO
2
-neutral
 
liquid
transport
 
fuels,
 
with
 
a
 
capacity
 
of
 
approximately
 
100,000
 
tons
per
 
year
 
to
 
be
 
located
 
in
 
Cologne,
 
Germany.
 
The
 
order
 
book
at
 
the
 
end
 
of
 
the
 
year
 
decreased
 
by
 
31%
 
to
 
EUR
 
857
 
million
(1,232
)
 
due
 
to
the
 
shortage
 
of
 
scrubber
 
orders.
Net
 
sales
 
decreased
 
by
 
15%
 
to
 
EUR
 
808
 
million
 
(952)
compared
 
to
 
the
 
previous
 
year.
 
Service
 
net
 
sales
 
increased
by
 
8%
 
to
 
EUR
 
219
 
million
 
(202),
 
while
 
equipment
 
net
 
sales
decreased
 
by
 
22%
 
to
 
EUR
 
588
 
million
 
(750).
 
The
 
comparable
operating
 
result
 
amounted
 
to
 
EUR
 
83
 
million
 
(60)
 
or
 
10.3%
 
of
net
 
sales
 
(6.3).
 
The
 
operating
 
result
 
for
 
the
 
comparison
period
 
was
 
weakened
 
by
 
charges
 
for
 
cost
 
overruns
 
in
 
certain
gas
 
solution
 
projects.
 
Wärtsilä
 
Voyage
Voyage’s
 
o
 
rder
 
intake
 
in
 
20
 
20
 
decreased
 
by
 
16%
 
to
 
EUR
 
262
million
 
(310)
 
compared
 
to
 
the
 
previous
 
year.
 
Book
 
-to
 
-bill
 
was
1.06
 
(1.11).
 
Service
 
order
 
intake
 
decreased
 
by
 
22%
 
to
 
EUR
92
 
million
 
(117),
 
while
 
equipment
 
order
 
intake
 
decreased
 
by
12%
 
to
 
EUR
 
170
 
million
 
(193).
While
 
COVID
 
-19
 
put
 
pressure
on
 
orders
 
received
 
from
 
the
 
cruise
 
industry,
 
order
 
intake
 
for
fleet
 
optimisation
 
solutions
 
developed
 
well
 
and
 
Wärtsilä
 
also
received
 
contracts
 
for
 
major
 
newbuild
 
projects
 
in
 
other
segments.
 
Highlights
 
of
 
the
 
year
 
included
 
a
 
contract
 
with
UltraShip
 
Denmark
 
to
 
install
the
 
cloud
 
-based
 
Wärtsilä
 
Fleet
Operations
 
Solution
 
(
FOS
 
)
 
across
 
their
 
entire
 
fleet
 
in
 
a
 
move
that
 
will
 
enable
 
direct
 
and
 
real
 
-time
 
connection
 
between
shore
 
and
 
vessel
 
systems
 
for
 
collaborative
 
voyage
 
planning
and
 
execution.
The
 
order
 
book
 
at
 
the
 
end
 
of
 
the
 
year
 
was
stable
 
at
 
EUR
 
275
 
million
 
(274).
Net
 
sales
 
decreased
 
by
 
12%
 
to
 
EUR
 
248
 
million
 
(280)
compared
 
to
 
the
 
previous
 
year.
The
 
decline
 
was
 
primarily
 
due
to
 
the
 
COVID
 
-19
 
pandemic,
 
which
 
has
 
resulted
 
in
 
project
postponements
 
and
 
lower
 
transactional
 
service
 
business.
Service
 
net
 
sales
 
decreased
 
by
 
18%
 
to
 
EUR
 
85
 
million
 
(103),
while
 
equipment
 
net
 
sales
 
decreased
 
by
 
8%
 
to
 
EUR
 
163
million
 
(177).
 
The
 
comparable
 
operating
 
result
 
amounted
 
to
EUR
 
-
 
41
 
million
 
(-31)
 
or
 
-16.5%
 
of
 
net
 
sales
 
(
 
-1
 
1.2).
 
The
result
 
was
 
negatively
 
impacted
 
by
 
lower
 
sales
 
volumes
 
and
 
a
less
 
favourable
 
service
 
mix.
 
In
 
addition,
 
investments
 
in
 
digital
competences
 
have
 
been
 
increased
 
to
 
further
 
accelerate
 
the
execution
 
of
 
Wärtsilä’s
 
Smart
 
Marine
 
strategy.
 
In
 
both
 
the
repo
 
rting
 
and
 
the
 
comparison
 
period,
 
the
 
operating
 
result
 
was
burdened
 
by
 
amortisation
 
resulting
 
from
 
various
 
acquisitions.
Wärtsilä
 
Energy
 
Energy’s
 
o
 
rder
 
intake
 
in
 
2020
 
decreased
 
by
 
7%
 
to
 
EUR
 
1,653
million
 
(1,769
 
)
 
compared
 
to
 
the
 
previous
 
year.
 
Book
 
-
 
to
 
-bill
was
 
1.02
 
(0.99).
 
Service
 
order
 
intake
 
decreased
 
by
 
9%
 
to
EUR
 
840
 
million
 
(920),
 
while
 
equipment
 
order
 
intake
decreased
 
by
 
4%
 
to
 
EUR
 
813
 
million
 
(849).
 
Demand
 
for
equipment
 
was
 
evenly
 
split
 
across
 
geographical
 
areas.
Noteworthy
 
equipment
 
orders
 
received
 
during
 
the
 
year
included
 
a
 
200
 
MW
 
flexible
 
baseload
 
plant
 
in
 
South
 
America
to
 
support
 
the
 
integration
 
of
 
renewables.
 
Activity
 
in
 
the
 
energy
storage
 
market
 
was
 
resilient,
 
with
 
orders
 
including
 
a
 
90
MW/90
 
MWh
 
storage
 
system
 
to
 
provide
 
flexibility
 
and
 
grid
stability
 
in
 
South
 
East
 
Asia,
 
an
 
order
 
for
 
a
 
123
 
MW/185
 
MWh
storage
 
system
 
to
 
support
 
a
 
major
 
renewable
 
project
 
in
 
the
USA,
 
as
 
well
 
as
 
the
 
first
 
-ever
 
GridSolv
 
Quantum
 
storage
system
 
in
 
the
 
USA.
 
Received
 
service
 
orde
 
rs
 
included
 
a
 
5-
year
 
maintenance
 
agreement
 
to
 
support
 
the
 
availability,
performance,
 
and
 
reliability
 
of
 
a
 
200
 
MW
 
power
 
plant
 
in
Cambodia,
 
as
 
well
 
as
 
a
 
gas
 
conversion
 
project
 
in
 
Brazil
 
along
with
 
a
 
related
 
10
 
-year
 
operations
 
and
 
maintenance
agreement
 
renewa
 
l.
 
The
 
order
 
book
 
at
 
the
 
end
 
of
 
the
 
year
decreased
 
by
 
9%
 
to
 
EUR
 
1,830
 
million
 
(2,014).
Net
 
sales
 
decreased
 
by
 
9%
 
to
 
EUR
 
1,620
 
million
 
(1,779)
compared
 
to
 
the
 
previous
 
year.
 
Service
 
net
 
sales
 
decreased
by
 
2%
 
to
 
EUR
 
782
 
million
 
(802),
 
while
 
equipment
 
net
 
sales
decreased
 
by
 
14%
 
to
 
EUR
 
838
 
million
 
(977).
 
The
 
comparable
operating
 
result
 
amounted
 
to
 
EUR
 
101
 
million
 
(155)
 
or
 
6.3%
of
 
net
 
sales
 
(8.7).
The
 
result
 
was
 
burdened
 
by
 
COVID
 
-19
impacts
 
in
 
the
 
form
 
of
 
delivery
 
delays,
 
weaker
 
absorption
 
of
fixed
 
costs,
 
and
 
increased
 
costs
 
for
 
project
 
execution,
 
as
 
well
as
 
by
 
the
 
delivery
 
of
 
projects
 
communicated
 
in
 
2019
 
to
 
be
affected
 
by
 
cost
 
overruns.
 
Other
 
business
 
activities
Wärtsilä
 
Portfolio
 
Business
Portfolio
 
Business’
 
o
 
rder
 
intake
 
in
 
2020
 
decreased
 
by
 
32%
 
to
EUR
 
168
 
mil
 
lion
 
(248)
 
compared
 
to
 
the
 
previous
 
year.
 
Activity
was
 
the
 
highest
 
in
 
American
 
Hydro,
 
where
 
orders
 
received
during
 
the
 
year
 
included
 
a
 
contract
 
to
 
perform
 
rehabilitation
services
 
and
 
to
 
complete
 
the
 
upgrade
 
and
 
refurbishment
 
of
two
 
units
 
at
 
the
 
Keokuk
 
hydroelectric
 
plant
 
in
 
Iowa,
 
USA.
T
 
his
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
F
 
inancial
 
review
 
Water
 
&
 
Waste
 
and
 
Entertainment
 
Systems
 
continued
 
to
 
work
closely
 
with
 
the
 
Italian
 
shipbuilder
 
Fincantieri
 
for
 
a
 
number
 
of
ships,
 
resulting
 
in
 
orders
 
for
 
complete
 
waste
 
treatment
systems
 
and
 
fresh
 
water
 
generators
 
for
 
two
 
vessels,
 
as
 
well
as
 
entertainment
 
systems
 
for
 
two
 
new
 
series
 
of
 
ships
comprising
 
eight
 
vessels.
 
The
 
order
 
book
 
at
 
the
 
end
 
of
 
the
year
 
decreased
 
by
 
24%
 
to
 
EUR
 
257
 
million
 
(338).
Net
 
sales
 
decreased
 
by
 
24%
 
to
 
EUR
 
181
 
million
 
(236)
compared
 
to
 
the
 
previous
 
year.
 
COVID
 
-19
 
lowered
 
activity,
particularly
 
in
 
the
 
Water
 
&
 
Waste
 
and
 
Entertainment
 
Systems
business
 
units,
 
where
 
especially
 
the
 
cruise
 
segment
 
was
heavily
 
affected.
 
The
 
comparable
 
operating
 
result
 
amounted
to
 
EUR
 
-6
 
million
 
(0)
 
or
 
-3.1%
 
of
 
net
 
sales
 
(0.1).
 
Items
affecting
 
comparability
 
amounting
 
to
 
EUR
 
24
 
million
 
were
recognised
 
during
 
the
 
year
 
largely
 
as
 
a
 
result
 
of
 
the
divestments
 
of
 
Wärtsilä
 
JOVYATLAS
 
GmbH
 
and
 
Wärtsilä
Valves
 
Ltd.
Divestments
In
 
September,
 
Wärtsilä
 
announced
 
the
 
divestment
 
of
 
100%
 
of
the
 
shares
 
in
 
Wärtsilä
 
JOVYATLAS
 
GmbH
 
to
 
Jacob
 
Waitz
Industrie
 
GmbH,
 
a
 
German
 
based
 
industry
 
holding.
 
The
Wärtsilä
 
JOVYATLAS
 
offering
 
consists
 
of
 
UPS
 
systems,
rectifiers,
 
power
 
inverters,
 
frequency
 
transformers
 
,
 
and
resistors
 
with
 
related
 
services.
 
The
 
company,
 
which
 
became
part
 
of
 
Wärtsilä
 
as
 
a
 
result
 
of
 
the
 
acquisition
 
of
 
L
 
-3
Communications
 
MSI
 
in
 
2015,
 
is
 
located
 
in
 
Jemgum
 
in
Germany
 
and
 
currently
 
has
 
some
 
125
 
employees.
 
In
 
2019,
 
its
annual
 
revenues
 
were
 
EUR
 
20
 
million.
 
The
 
divestment
 
is
driving
 
Wärtsilä’s
 
focus
 
on
 
creating
 
a
 
stronger
 
and
 
simpler
core
 
business.
In
 
October,
 
Wärtsilä
 
announced
 
the
 
divestment
 
of
 
100%
 
of
the
 
shares
 
in
 
Wärtsilä
 
Valves
 
Ltd
 
to
 
an
 
affiliate
 
of
 
Evergreen
Capital
 
L.P.,
 
based
 
in
 
New
 
York,
 
US
 
A.
 
Its
 
activities
 
include
engineering,
 
assembly,
 
testing,
 
sales
 
,
 
and
 
delivery
 
of
 
nickel
aluminium
 
bronze
 
(NAB)
 
and
 
duplex
 
valves
 
for
 
the
 
marine,
 
oil
and
 
gas
 
,
 
and
 
energy
 
markets.
 
Additionally,
 
it
 
offers
applications
 
for
 
Valves’
 
products,
 
including
 
FPSO,
petrochemical
 
facilities,
 
power
 
generation,
 
LNG,
 
naval
marine,
 
marine
 
services,
 
waste
 
water
 
treatment
 
plants
 
,
 
and
pipelines.
 
Wärtsilä
 
Valves
 
became
 
part
 
of
 
Wärtsilä
 
as
 
a
 
result
of
 
the
 
Hamworthy
 
acquisition
 
in
 
2012.
 
The
 
company
 
is
located
 
in
 
Brough,
 
UK
 
and
 
currently
 
has
 
approximately
 
65
e
 
mployees.
 
The
 
annual
 
revenues
 
were
 
approximately
 
EUR
15
 
million
 
in
 
2019.
In
 
December,
 
Wärtsilä
 
closed
 
the
 
divestment
 
of
 
Wärtsilä
ELAC
 
Nautik
 
GmbH
 
(ELAC
 
Nautik)
 
to
 
Cohort
 
plc,
 
a
 
UK
 
listed
company,
 
specialising
 
in
 
defence,
 
security
 
and
 
related
 
market
sectors.
 
ELAC
 
Nautik
 
became
 
part
 
of
 
Wärtsilä
 
as
 
a
 
result
 
of
the
 
acquisition
 
of
 
L
 
-3
 
Communications
 
MSI
 
in
 
2015.
 
Its
 
main
market
 
focus
 
is
 
on
 
hydroacoustic
 
products,
 
including
 
sonars,
underwater
 
communication
 
and
 
echo
 
systems
 
for
 
small
 
and
medium
 
sized
 
military
 
submarines.
 
The
 
company
 
is
 
located
 
in
Kiel,
 
Germany
 
and
 
employs
 
125
 
people.
 
The
 
annual
revenues
 
were
 
approximately
 
EUR
 
20
 
million
 
in
 
2019.
Risks
 
and
 
business
 
uncertainties
The
 
COVID
 
-19
 
pandemic
 
and
 
the
 
measures
 
taken
 
to
 
contain
its
 
spread
 
represent
 
the
 
main
 
sh
 
ort
 
-term
 
risk
 
to
 
business
operations
 
and
 
the
 
demand
 
environment,
 
impacting
 
global
energy
 
consumption,
 
seaborne
 
trade,
 
as
 
well
 
as
 
consumer
confidence
 
in
 
cruise
 
and
 
ferry
 
transportation.
 
Mobility
restrictions
 
continue
 
to
 
affect
 
business
 
activities,
 
project
delivery
 
schedules,
 
and
 
the
 
ability
 
to
 
perform
 
service
activities.
 
Disruptions
 
to
 
global
 
supply
 
chains
 
resulting
 
from
new
 
waves
 
of
 
COVID
 
-19
 
infections
 
are
 
a
 
risk
 
for
 
both
 
factory
activity
 
and
 
the
 
delivery
 
of
 
spare
 
parts
 
and
 
services.
 
Although
vaccinations
 
a
 
gainst
 
COVID
 
-19
 
have
 
started
 
in
 
many
countries,
 
there
 
is
 
still
 
significant
 
uncertainty
 
over
 
the
 
duration
of
 
the
 
pandemic
 
and
 
how
 
quickly
 
country
 
level
 
vaccination
program
 
mes
 
will
 
be
 
implemented
 
on
 
a
 
global
 
scale.
In
 
the
 
marine
 
markets,
 
the
 
risk
 
of
 
a
 
prolonged
 
period
 
of
 
weak
demand
 
affects
 
the
 
investment
 
decisions
 
of
 
shipowners
 
and
operators,
 
who
 
are
 
forced
 
to
 
re
 
-evaluate
 
their
 
strategies
related
 
to
 
both
 
vessel
 
newbuilding
 
and
 
existing
 
fleets,
 
and
 
to
cut
 
capital
 
and
 
operational
 
expenditures.
 
The
 
prevailing
market
 
conditions
 
may
 
result
 
in
 
continued
 
price
 
pressure
 
and
an
 
elevated
 
risk
 
of
 
order
 
cancellations
 
or
 
slippage.
 
Surplus
capacity
 
can
 
drive
 
further
 
consolidation
 
among
 
shipyards,
ship
 
owners,
 
and
 
operators
 
in
 
certain
 
segments,
 
which
 
may
result
 
in
 
lower
 
capture
 
rates
 
in
 
services
 
and
 
equipment
 
sales
due
 
to
 
changed
 
customer
 
relationships.
 
Extensions
 
of
 
no
 
-sail
orders,
 
the
 
limited
 
ability
 
or
 
desire
 
of
 
people
 
to
 
travel,
 
and
 
the
escalation
 
of
 
COVID
 
-19
 
cases
 
are
 
a
 
risk
 
for
 
recovery
 
in
 
the
cruise
 
and
 
ferry
 
markets.
 
In
 
the
 
offshore
 
industry,
 
crude
 
oil
price
 
volatility
 
is
 
pushing
 
the
 
oil
 
majors
 
to
 
reduce
 
their
spending,
 
exploration
 
activity,
 
and
 
operational
 
costs,
 
leading
to
 
an
 
increasing
 
number
 
of
 
laid
 
-up
 
drilling
 
units
 
and
 
support
vessels.
 
The
 
average
 
price
 
spread
 
b
 
etween
 
high
 
-
 
and
 
low-
sulphur
 
fuels
 
is
 
projected
 
to
 
remain
 
narrow
 
in
 
the
 
near
 
term,
negatively
 
impacting
 
the
 
scrubber
 
investment
 
case
 
for
 
both
the
 
existing
 
fleet
 
and
 
newbuilds.
 
At
 
the
 
same
 
time,
 
the
 
low
 
oil
price
 
is
 
widening
 
the
 
price
 
differential
 
between
 
existing
 
fuels
and
 
green
 
alternatives.
 
This
 
,
 
combined
 
with
 
the
 
market
challenges
 
shipowners
 
are
 
facing
 
,
 
further
 
raises
 
the
importance
 
of
 
a
 
clear
 
and
 
foreseeable
 
development
 
of
 
the
regulatory
 
environment
 
as
 
a
 
fundamental
 
condition
 
to
 
the
decarbonisation
 
of
 
shipping.
 
In
 
the
 
e
 
nergy
 
markets,
 
the
 
slowdown
 
in
 
economic
 
activity,
currency
 
fluctuations,
 
and
 
potential
 
financing
 
constraints
 
are
likely
 
to
 
postpone
 
investment
 
decisions
 
on
 
new
 
power
generation
 
capacity.
 
The
 
energy
 
transition
 
may
 
temporarily
slow
 
down,
 
as
 
the
 
focus
 
is
 
on
 
containing
 
the
 
virus
 
spread
 
and
mitigating
 
its
 
impacts.
 
Agreed
 
and
 
proposed
 
stimulus
packages
 
to
 
accelerate
 
renewable
 
energy
 
investments
 
still
include
 
uncertainties
 
about
 
the
 
allocation
 
of
 
funding.
However,
 
once
 
stimulus
 
measures
 
are
 
execut
 
ed,
 
the
 
need
 
for
flexibility
 
in
 
power
 
systems
 
will
 
be
 
emphasi
 
s
 
ed.
 
Changes
 
in
c
 
limate
 
polic
 
ies
 
and
 
regulation
 
s
 
cause
 
uncertainty
 
in
 
the
markets
 
,
 
as
 
they
 
may
 
impact
 
customers’
 
technology
 
choices.
Geopolitical
 
tensions
 
and
 
trade
 
barrier
 
implications
 
are
 
also
notable
 
challenges
 
to
 
the
 
demand
 
environment.
 
Price
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
T
 
his
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
F
 
inancial
 
review
 
pressure
 
resulting
 
from
 
the
 
prevailing
 
competitive
environment
 
remains
 
a
 
risk.
The
 
Group
 
is
 
a
 
defendant
 
in
 
a
 
number
 
of
 
legal
 
cases
 
that
have
 
arisen
 
out
 
of,
 
or
 
are
 
incidental
 
to,
 
the
 
ordinary
 
course
 
of
its
 
business.
 
These
 
lawsuits
 
mainly
 
concern
 
issues
 
such
 
as
contractual
 
and
 
other
 
liability,
 
labour
 
relations,
 
property
damage,
 
and
 
regulatory
 
matters.
 
From
 
time
 
to
 
time,
 
the
Group
 
receives
 
claims
 
of
 
different
 
amounts
 
and
 
with
 
varying
degrees
 
of
 
substantiation.
 
There
 
is
 
currently
 
one
 
unusually
sizeable
 
claim.
 
It
 
is
 
the
 
Group’s
 
policy
 
to
 
provide
 
for
 
amounts
related
 
to
 
the
 
claims
 
as
 
well
 
as
 
for
 
litigation
 
and
 
arbitration
matters
 
when
 
an
 
unfavourable
 
outcome
 
is
 
probable
 
and
 
the
amount
 
of
 
loss
 
can
 
be
 
reasonably
 
estimated.
The
 
Risks
 
and
 
risk
 
management
 
section
 
of
 
the
 
annual
 
report
contains
 
a
 
more
 
detailed
 
description
 
of
 
Wärtsilä’s
 
risks
 
and
risk
 
management.
Shares
 
and
 
shareholders
In
 
2020
 
,
 
the
 
number
 
of
 
shares
 
traded
 
on
 
Nasdaq
 
Helsinki
 
was
635,449,872
 
,
 
equivalent
 
to
 
a
 
turnover
 
of
 
EUR
 
4,865
 
million.
Wärtsilä's
 
shares
 
are
 
also
 
traded
 
on
 
alternative
 
exchanges,
such
 
as
 
Turquoise,
 
BATS
 
CXE,
 
and
 
BATS
 
BXE.
 
The
 
total
trading
 
volume
 
on
 
these
 
alternative
 
exchanges
 
was
199,394,959
 
shares.
Wärtsilä
 
shares
 
on
 
Nasdaq
 
Helsinki
31.12.2020
Number
 
of
 
shares
 
and
 
votes
Number
 
of
 
shares
 
traded
 
1-12/2020
WRT1V
591,723,390
635,449,872
1.1.-
 
31.12.2020
High
Low
Average*
Close
Share
 
price
 
12.00
5.01
7.66
8.15
*Trade
 
-weighted
 
average
 
price
Market
 
capitalisation
31.12.2020
31.12.2019
MEUR
4,823
5,828
Foreign
 
shareholders
31.12.2020
31.12.2019
%
50.7
52.8
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
T
 
his
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
F
 
inancial
 
review
 
 
Decisions
 
taken
 
by
 
the
 
Annual
 
General
 
Meeting
Wärtsilä’s
 
Annual
 
General
 
Meeting,
 
held
 
on
 
5
 
March
 
2020,
approved
 
the
 
financial
 
statements
 
and
 
discharged
 
the
members
 
of
 
the
 
Board
 
of
 
Directors
 
and
 
the
 
company’s
President
 
&
 
CEO
 
from
 
liability
 
for
 
the
 
financial
 
year
 
2019.
The
 
Annual
 
General
 
Meeting
 
decided
 
that
 
the
 
Board
 
of
Directors
 
shall
 
have
 
eight
 
members.
 
The
 
following
 
were
elected
 
to
 
the
 
Board:
 
Maarit
 
Aarni
 
-Sirviö,
 
Karen
 
Bomba,
 
Karin
Falk,
 
Johan
 
Forssell,
 
Tom
 
Johnstone,
 
Risto
 
Murto,
 
Mats
Rahmström
 
and
 
Markus
 
Rauramo.
The
 
audit
 
firm
 
PricewaterhouseCoopers
 
Oy
 
was
 
elected
 
as
the
 
company’s
 
auditor
 
for
 
the
 
year
 
2020.
Dividend
 
distribution
The
 
Annual
 
General
 
Meeting
 
approved
 
the
 
Board
 
of
Directors’
 
proposal
 
to
 
pay
 
a
 
dividend
 
of
 
EUR
 
0.48
 
per
 
share
in
 
two
 
instalments.
 
The
 
first
 
instalment
 
of
 
EUR
 
0.24
 
per
 
share
was
 
paid
 
on
 
16
 
March
 
2020
 
and
 
the
 
second
 
instalment
 
of
EUR
 
0.24
 
per
 
share
 
on
 
17
 
September
 
2020.
Shareholders’
 
Nomination
 
Board
The
 
Annual
 
General
 
Meeting
 
decided
 
to
 
establish
 
a
Shareholders’
 
Nomination
 
Board
 
to
 
prepare
 
matters
pertaining
 
to
 
the
 
appointment
 
and
 
remuneration
 
of
 
the
 
Board
of
 
Directors.
 
It
 
also
 
adopted
 
the
 
proposed
 
Charter
 
of
 
the
Shareholders’
 
Nomination
 
Board.
 
The
 
Charter
 
is
 
available
 
on
Wärtsilä
 
Corporation’s
 
website.
The
 
Nomination
 
Board
 
consists
 
of
 
five
 
members.
 
Four
representatives
 
are
 
nominated
 
by
 
the
 
company’s
 
four
 
largest
shareholders,
 
with
 
the
 
fifth
 
member
 
being
 
the
 
Chairman
 
of
Wärtsilä’s
 
Board
 
of
 
Directors.
 
The
 
four
 
largest
 
shareholders
are
 
determined
 
on
 
the
 
basis
 
of
 
the
 
shareholders’
 
register
maintained
 
by
 
Euroclear
 
Finland
 
Oy
 
as
 
of
 
1
 
June
 
preceding
the
 
Annual
 
General
 
Meeting
 
of
 
shareholders.
Flagging
 
notifications
Wärtsilä
 
was
 
informed
 
of
 
the
 
following
 
changes
 
in
 
ownership
 
during
 
2020
 
:
Transaction
 
date
Shareholder
Treshold
Direct
 
holding,
 
%
Total
 
holding,
 
%
24.3.2020
BlackRock,
 
Inc.
Above
 
5%
4.85
5.11
31.3.2020
BlackRock,
 
Inc.
Below
 
5%
4.30
4.82
1.4.2020
BlackRock,
 
Inc.
Above
 
5%
4.48
5.00
2.4.2020
BlackRock,
 
Inc.
Below
 
5%
4.37
4.94
25.5.2020
BlackRock,
 
Inc.
Above
 
5%
4.48
5.00
26.5.2020
BlackRock,
 
Inc.
Below
 
5%
Below
 
5%
Below
 
5%
18.6.2020
BlackRock,
 
Inc.
Above
 
5%
4.69
5.13
15.7.2020
BlackRock,
 
Inc.
Above
 
5%
5.02
5.80
23.7.2020
BlackRock,
 
Inc.
Below
 
5%
4.88
5.33
24.7.2020
BlackRock,
 
Inc.
Above
 
5%
5.12
5.54
27.7.2020
BlackRock,
 
Inc.
Below
 
5%
4.98
5.44
28.7.2020
BlackRock,
 
Inc.
Above
 
5%
5.01
5.47
29.7.2020
BlackRock,
 
Inc.
Below
 
5%
4.95
5.40
31.7.2020
BlackRock,
 
Inc.
Above
 
5%
5.04
5.48
5.8.2020
BlackRock,
 
Inc.
Below
 
5%
4.99
5.43
6.8.2020
BlackRock,
 
Inc.
Above
 
5%
5.08
5.47
11.8.2020
BlackRock,
 
Inc.
Below
 
5%
4.96
5.31
11.9.2020
BlackRock,
 
Inc.
Above
 
5%
5.03
5.58
18.9.2020
BlackRock,
 
Inc.
Below
 
5%
4.78
5.57
21.10.2020
BlackRock,
 
Inc.
Below
 
5%
Below
 
5%
Below
 
5%
14.12.2020
BlackRock,
 
Inc.
Above
 
5%
4.89
5.00
15.12.2020
BlackRock,
 
Inc.
Below
 
5%
Below
 
5%
Below
 
5%