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wartsila-2021-12-31p1i0
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
BOARD
 
OF
 
DIRECTORS'
 
REPORT
BUSINESS
 
MODEL
Wärtsilä
 
provides
 
the
 
marine
 
and
 
energy
 
markets
 
with
 
innovative
technologies
 
and
 
lifecycle
 
solutions.
 
In
 
the
 
energy
 
industry,
Wärtsilä
 
offers
 
power
 
system
 
optimisation
 
with
 
a
 
portfolio
 
of
 
future
fuel
 
enabled
 
thermal
 
balancing
 
power
 
solutions,
 
hybrid
 
solutions,
as
 
well
 
as
 
energy
 
management
 
and
 
storage
 
systems
 
on
 
an
equipment
 
only
 
or
 
turnkey
 
delivery
 
basis.
 
The
 
marine
 
offering
includes
 
power
 
and
 
propulsion
 
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
 
performance-based
 
agreements
 
that
 
ensure
a
 
maximised
 
installation
 
lifetime,
 
increased
 
efficiency,
 
and
guaranteed
 
performance.
 
The
 
company
 
aims
 
at
 
maximising
environmental
 
and
 
economic
 
performance
 
by
 
emphasising
innovation
 
in
 
sustainable
 
technology
 
and
 
services.
 
To
 
support
 
its
 
geographically
 
dispersed
 
customer
 
base,
 
Wärtsilä’s
sales
 
and
 
service
 
network
 
covers
 
more
 
than
 
200
 
locations
 
in
 
68
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
approximately
 
1,200
 
global
direct
 
material
 
suppliers.
 
Wärtsilä’s
 
personnel
 
is
 
made
 
up
 
of
approximately
 
17,000
 
employees
 
comprising
 
130
 
nationalities.
 
By
recruiting
 
and
 
retaining
 
the
 
best
 
talent,
 
Wärtsilä
 
can
 
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
 
requires
 
its
suppliers
 
and
 
business
 
partners
 
to
 
follow
 
the
 
same
 
high
 
legal
 
and
ethical
 
standards
 
and
 
business
 
practices.
STRATEGY
Strategy
 
implementation
 
in
 
2021
In
 
2021,
 
Wärtsilä
 
launched
 
a
 
new
 
phase
 
in
 
the
 
company’s
development,
 
with
 
the
 
company’s
 
value
 
creation
 
potential
 
going
forward
 
being
 
based
 
on
 
two
 
strategic
 
themes:
 
Transform
 
and
Perform.
 
The
 
Transform
 
theme
 
refers
 
to
 
decarbonisation,
 
creating
new
 
business
 
opportunities
 
by
 
leveraging
 
growth
 
in
 
electricity
generation,
 
balancing
 
power
 
and
 
green
 
marine
 
transport.
 
The
Perform
 
theme
 
centres
 
around
 
leveraging
 
market
 
recovery
 
and
growth,
 
supported
 
by
 
robust
 
execution,
 
continuous
 
improvement,
and
 
the
 
company’s
 
commitment
 
to
 
both
 
financial
 
and
 
sustainability
targets.
 
Wärtsilä’s
 
purpose
 
to
 
enable
 
sustainable
 
societies
 
through
innovation
 
in
 
technology
 
and
 
services
 
is
 
well
 
connected
 
to
 
the
Transform
 
and
 
Perform
 
themes.
 
The
 
company’s
 
five
 
strategic
priorities
 
emphasise
 
customer
 
value,
 
high-performing
 
teams,
decarbonisation,
 
service
 
growth,
 
and
 
continuous
 
improvement.
Despite
 
the
 
continued
 
Covid-19
 
related
 
disruptions
 
to
 
business
operations,
 
Wärtsilä
 
remains
 
committed
 
to
 
R&D
 
activities.
 
In
 
line
with
 
the
 
global
 
trend
 
towards
 
decarbonising
 
the
 
energy
 
and
 
marine
markets,
 
further
 
progress
 
in
 
future-proofing
 
engine
 
technology
 
was
demonstrated
 
in
 
2021
 
by
 
the
 
launch
 
of
 
a
 
major
 
test
 
programme
towards
 
carbon-free
 
fuel
 
solutions
 
with
 
hydrogen
 
and
 
ammonia.
Wärtsilä
 
expects
 
to
 
have
 
an
 
engine
 
concept
 
ready
 
for
 
operating
with
 
pure
 
ammonia
 
fuel
 
in
 
2023
 
and
 
with
 
pure
 
hydrogen
 
by
 
2025.
While
 
much
 
of
 
the
 
decarbonisation
 
work
 
is
 
still
 
ahead,
 
Wärtsilä
already
 
has
 
solutions
 
and
 
technologies
 
that
 
enable
 
100%
renewable
 
power
 
systems
 
and
 
fuel
 
flexibility,
 
thus
 
supporting
decarbonisation.
 
In
 
2021,
 
Wärtsilä
 
Energy
 
launched
 
34SG
Balancer,
 
the
 
optimal
 
solution
 
for
 
balancing
 
renewable
 
power
generation,
 
and
 
delivered
 
the
 
first
 
units
 
of
 
the
 
new
 
modular
Quantum
 
platform
 
for
 
energy
 
storage.
 
Wärtsilä
 
Marine
 
Power
upgraded
 
the
 
popular
 
20DF
 
dual-fuel
 
engine
 
to
 
deliver
 
more
 
power
with
 
less
 
energy
 
consumption,
 
while
 
its
 
methane
 
slip
 
is
 
lowered
 
by
as
 
much
 
as
 
40%.
 
Wärtsilä
 
Marine
 
Systems
 
is
 
driving
 
the
development
 
of
 
maritime
 
carbon
 
capture
 
and
 
storage
 
technologies
and
 
will
 
be
 
one
 
of
 
the
 
leading
 
partners
 
in
 
the
 
LINCCS
 
consortium,
strengthening
 
the
 
decarbonisation
 
pathway
 
for
 
shipping.
 
Wärtsilä
Voyage
 
initiated
 
partnerships
 
and
 
projects
 
globally
 
to
 
support
vessel
 
and
 
port
 
service
 
optimisation
 
to
 
enable
 
sustainable
 
shipping.
Their
 
digital
 
systems,
 
such
 
as
 
Navi-Port
 
and
 
Field
 
Operations
Solution,
 
optimise
 
the
 
vessel
 
journey
 
and
 
enable
 
just-in-time
 
arrival
for
 
ships,
 
thereby
 
saving
 
fuel
 
while
 
reducing
 
time
 
at
 
anchorage,
and
 
reducing
 
greenhouse
 
gas
 
emissions.
Wärtsilä
 
regards
 
collaboration
 
with
 
industry
 
stakeholders
 
as
 
an
essential
 
element
 
in
 
the
 
development
 
of
 
technologies
 
needed
 
to
meet
 
changing
 
market
 
requirements.
 
Joint
 
efforts
 
with
 
our
ecosystem
 
included
 
agreements
 
aimed
 
at
 
utilising
 
carbon-neutral
fuels
 
in
 
both
 
power
 
production
 
and
 
marine
 
applications,
 
and
enhancing
 
safety
 
and
 
efficiency
 
in
 
maritime
 
operations.
 
In
 
2021,
 
Wärtsilä
 
announced
 
its
 
commitment
 
to
 
ambitious
decarbonisation
 
targets.
 
The
 
company’s
 
goal
 
is
 
that
 
by
 
2030
 
it
 
will
become
 
carbon-neutral
 
in
 
its
 
own
 
operations,
 
and
 
be
 
able
 
to
provide
 
a
 
product
 
portfolio
 
ready
 
for
 
zero-carbon
 
fuels.
 
These
 
new
targets
 
demonstrate
 
Wärtsilä’s
 
commitment
 
to
 
a
 
sustainable
 
future.
The
 
company’s
 
aim
 
is
 
to
 
support
 
its
 
customers
 
on
 
their
decarbonisation
 
journey,
 
and
 
thus
 
shape
 
the
 
decarbonisation
 
of
 
the
marine
 
and
 
energy
 
sectors.
 
Wärtsilä’s
 
products
 
and
 
solutions
 
will
meet
 
the
 
most
 
stringent
 
environmental
 
requirements,
 
and
 
the
 
fuel
flexibility
 
of
 
the
 
engines
 
powering
 
these
 
sectors
 
is
 
key
 
to
 
enabling
the
 
transformation.
 
Naturally,
 
Wärtsilä
 
also
 
needs
 
to
 
do
 
its
 
part
 
as
an
 
organisation
 
and
 
minimise
 
its
 
own
 
environmental
 
footprint.
The
 
health
 
and
 
safety
 
of
 
personnel
 
is
 
a
 
continuous
 
priority
 
for
Wärtsilä,
 
and
 
all
 
the
 
more
 
important
 
during
 
the
 
global
 
Covid-19
pandemic.
 
Wärtsilä
 
maintains
 
a
 
diverse
 
global
 
workforce
 
with
thousands
 
of
 
employees
 
performing
 
tasks
 
onsite,
 
either
 
in
 
the
 
field
or
 
at
 
customer
 
premises.
 
A
 
global
 
crisis
 
response
 
team
 
and
 
local
country
 
incident
 
management
 
teams
 
continued
 
to
 
support
 
the
company
 
in
 
securing
 
global
 
mobility
 
whilst
 
observing
 
appropriate
safety
 
and
 
precautionary
 
measures.
 
In
 
addition,
 
Wärtsilä
established
 
a
 
global
 
Wellbeing
 
Committee,
 
with
 
the
 
goal
 
of
improving
 
the
 
health,
 
safety,
 
and
 
wellbeing
 
of
 
its
 
personnel
 
through
effective
 
leadership,
 
activities,
 
and
 
a
 
wellbeing-focused
 
culture.
Zero
 
lost-time
 
injuries
 
continues
 
to
 
be
 
the
 
company’s
 
global
 
target.
During
 
2021,
 
lost-time
 
injury
frequency
 
was
 
1.55
 
(2.03),
 
which
represents
 
a
 
decrease
 
of
 
24%
 
compared
 
to
 
the
 
previous
 
year
.
Financial
 
targets
 
and
 
outcome
 
in
 
2021
In
 
2021,
 
Wärtsilä
 
introduced
 
new
 
financial
 
targets.
 
Those
 
include
annual
 
organic
 
growth
 
of
 
5%
 
and
 
an
 
operating
 
margin
 
of
 
12%.
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.
 
wartsila-2021-12-31p1i0
 
 
 
 
 
 
 
 
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
Wärtsilä’s
 
net
 
sales
 
for
2021
 
increased
 
by
 
6%
 
organically.
Operating
result
 
amounted
 
to
EUR
 
314
 
million,
 
which
 
represents
6.6%
 
of
 
net
 
sales.
 
Gearing
 
was
 
0.00.
 
The
 
Board
 
of
 
Directors'
proposed
 
dividend
 
of
 
EUR
 
0.24
per
 
share
represents
 
73.2%
 
of
operational
 
earnings.
THE
 
YEAR
 
2021
Operating
 
environment
Marine
The
 
shipping
 
and
 
shipbuilding
 
markets
 
were
 
characterised
 
by
mixed
 
activity
 
levels
 
across
 
different
 
vessel
 
segments
 
during
 
2021.
Altogether
 
1,855
 
contracts
 
for
 
new
 
vessels
 
were
 
registered
 
in
 
the
review
 
period
 
January–December
 
(815
 
in
 
the
 
corresponding
 
period
last
 
year,
 
excluding
 
late
 
reporting
 
of
 
contracts),
 
largely
 
driven
 
by
containerships.
 
Growing
 
and
 
pent-up
 
demand,
 
along
 
with
 
logistical
disruptions,
 
has
 
resulted
 
in
 
a
 
shortage
 
of
 
available
 
tonnage
 
in
 
the
containership,
 
gas
 
carrier,
 
and
 
bulker
 
sectors,
 
and
 
has
 
pushed
earnings
 
and
 
newbuild
 
contracting
 
to
 
levels
 
exceeding
 
the
 
pre-
Covid
 
era.
 
The
 
surge
 
in
 
newbuild
 
ordering
 
has
 
supported
 
the
forward
 
cover
 
of
 
larger
 
shipyard
 
groups,
 
which
 
have
 
managed
 
to
mitigate
 
the
 
impact
 
of
 
a
 
rapid
 
increase
 
in
 
raw
 
material
 
costs
 
by
increasing
 
the
 
price
 
for
 
newbuild
 
vessels.
 
However,
 
high
 
earnings
and
 
tonnage
 
demand
 
have
 
led
 
to
 
postponements
 
of
 
activities
 
that
require
 
dry-docking,
 
such
 
as
 
scrubber
 
retrofits.
 
At
 
the
 
same
 
time,
the
 
progress
 
in
 
Covid-19
 
vaccination
 
programmes,
 
and
 
the
 
lifting
 
of
travel
 
restrictions
 
in
 
key
 
cruise
 
locations
 
have
 
resulted
 
in
 
further
reactivation
 
of
 
the
 
cruise
 
fleet.
 
However,
 
the
 
impact
 
of
 
the
 
Omicron
virus
 
variant
 
over
 
time
 
remains
 
an
 
uncertainty.
 
Newbuild
 
cruise
activity
 
is
 
still
 
limited,
 
and
 
utilisation
 
rates
 
remain
 
below
 
2019
levels.
The
 
most
 
attractive
 
vessel
 
segments
 
for
 
Wärtsilä,
 
namely
specialised
 
tonnage,
 
have
 
recovered
 
from
 
the
 
turmoil
 
caused
 
by
the
 
pandemic
 
to
 
a
 
varying
 
degree.
 
The
 
reactivation
 
of
 
cruise
vessels
 
significantly
 
improved
 
during
 
the
 
second
 
half
 
of
 
the
 
year,
as
 
operators
 
resumed
 
sailing.
 
As
 
at
 
the
 
end
 
of
 
December,
 
around
70%
 
of
 
the
 
cruise
 
fleet
 
capacity
 
was
 
active,
 
up
 
from
 
around
 
50%
 
at
the
 
end
 
of
 
September,
 
and
 
around
 
20%
 
at
 
the
 
end
 
of
 
June.
 
The
ferry
 
market
 
continues
 
on
 
a
 
positive
 
trend,
 
although
 
passenger
travelling
 
is
 
still
 
somewhat
 
limited
 
due
 
to
 
Covid-19
 
related
restrictions.
 
Activity
 
in
 
the
 
offshore
 
oil
 
and
 
gas
 
segment
 
marginally
improved,
 
supported
 
by
 
a
 
slight
 
rise
 
in
 
vessel
 
demand
 
and
 
elevated
demolition
 
activity.
 
The
 
demand
 
for
 
offshore
 
construction-related
vessels,
 
such
 
as
 
wind
 
turbine
 
installation
 
vessels
 
has
 
improved,
thanks
 
to
 
strong
 
growth
 
in
 
active
 
offshore
 
wind
 
farms.
 
The
 
LNG
(liquified
 
natural
 
gas)
 
carrier
 
sector
 
remains
 
healthy,
 
as
 
inventories
have
 
been
 
at
 
record-low
 
levels,
 
thus
 
supporting
 
LNG
 
trade
 
and
 
the
demand
 
for
 
tonnage,
 
regardless
 
of
 
a
 
strong
 
increase
 
in
 
gas
 
prices.
The
 
container
 
shipping
 
markets
 
have
 
continued
 
to
 
see
extraordinary
 
market
 
conditions.
 
Severe
 
port
 
congestion
 
and
widespread
 
logistical
 
disruption,
 
alongside
 
firm
 
demand,
 
have
 
led
to
 
further
 
new
 
records
 
in
 
freight
 
and
 
charter
 
rates,
 
as
 
well
 
as
newbuild
 
ordering.
 
The
 
tanker
 
market
 
continued
 
to
 
face
 
challenges
with
 
weak
 
demand,
 
especially
 
in
 
the
 
crude
 
sector.
 
The
 
acceleration
 
of
 
environmental
 
concerns
 
remains
 
the
 
main
underlying
 
trend,
 
as
 
the
 
regulatory
 
framework
 
and
 
wider
 
policy
announcements
 
are
 
being
 
ramped
 
up
 
from
 
political
 
regulators,
cargo
 
owners,
 
and
 
financiers,
 
all
 
of
 
whom
 
are
 
building
 
pressure
 
to
move
 
faster
 
than
 
the
 
current
 
targets
 
set
 
by
 
the
 
International
Maritime
 
Organisation
 
(IMO).
 
In
 
July,
 
the
 
European
 
Commission
adopted
 
a
 
package
 
of
 
proposals
 
(‘Fit
 
for
 
55’)
 
to
 
cut
 
greenhouse
 
gas
(GHG)
 
emissions
 
by
 
at
 
least
 
55%
 
from
 
1990
 
levels
 
by
 
2030.
 
One
 
of
the
 
many
 
proposals
 
is
 
to
 
include
 
shipping
 
in
 
the
 
EU
 
Emissions
Trading
 
System
 
from
 
2023.
 
Another
 
is
 
the
 
FuelEU
 
Maritime
Initiative,
 
which
 
aims
 
at
 
increasing
 
the
 
adoption
 
of
 
cleaner
technologies
 
and
 
sustainable
 
alternative
 
fuels
 
by
 
imposing
 
a
 
limit
on
 
the
 
GHG
 
intensity
 
of
 
energy
 
used
 
by
 
ships.
 
As
 
the
 
global
pressure
 
to
 
find
 
solutions
 
to
 
stop
 
climate
 
change
 
builds,
 
ship
owners
 
are
 
considering
 
a
 
number
 
of
 
options,
 
including
 
slow
steaming,
 
energy
 
saving
 
devices,
 
voyage
 
optimisation
 
solutions,
hybrid
 
and
 
full-electric
 
power
 
systems,
 
and
 
alternative
 
fuels.
 
The
transition
 
to
 
cleaner
 
fuels
 
has
 
already
 
started,
 
with
 
384
 
orders
placed
 
globally
 
for
 
alternative
 
fuel
 
capable
 
vessels,
 
representing
21%
 
(17%)
 
of
 
all
 
newbuild
 
contracting
 
in
 
the
 
review
 
period
January–December.
 
LNG
 
is
 
the
 
dominant
 
choice
 
and
 
is
 
gaining
further
 
traction,
 
although
 
other
 
alternative
 
fuels
 
are
 
slowly
emerging.
 
The
 
price
 
differential
 
between
 
high
 
and
 
low-sulphur
 
fuels
increased
 
throughout
 
the
 
year
 
to
 
USD
 
150
 
per
 
tonne.
 
The
 
interest
in
 
scrubber
 
installations
 
continues
 
to
 
be
 
mostly
 
driven
 
by
newbuilds,
 
with
 
orders
 
recorded
 
for
 
231
 
vessels
 
globally
 
in
 
2021.
Scrubber
 
retrofitting
 
activity
 
continued
 
to
 
be
 
muted.
Energy
The
 
global
 
liquid
 
and
 
gas
 
fuelled
 
power
 
plant
 
markets
 
were
recovering
 
towards
 
the
 
end
 
of
 
2021,
 
despite
 
the
 
pandemic
 
and
 
the
resulting
 
weakening
 
of
 
the
 
investment
 
environment.
 
While
 
the
market
 
situation
 
is
 
improving,
 
customers
 
still
 
continue
 
to
 
postpone
investments
 
due
 
to
 
the
 
prevailing
 
uncertainty
 
regarding
 
the
duration,
 
development,
 
and
 
economic
 
impacts
 
of
 
the
 
pandemic.
 
As
vaccination
 
programmes
 
in
 
a
 
large
 
part
 
of
 
our
 
core
 
markets
 
move
slowly,
 
full
 
recovery
 
will
 
most
 
likely
 
take
 
time.
 
Additionally,
 
energy
and
 
climate
 
policies
 
are
 
being
 
developed
 
and
 
reviewed
 
around
 
the
world
 
to
 
drive
 
more
 
ambitious
 
decarbonisation
 
targets,
 
and
 
utilities
continue
 
to
 
update
 
their
 
investment
 
strategies,
 
which
 
is
 
causing
uncertainty
 
and
 
delays
 
in
 
decision
 
making.
 
The
 
vast
 
majority
 
of
global
 
greenhouse
 
gas
 
emissions
 
is
 
targeted
 
by
 
national
 
pledges
and
 
net-zero
 
targets,
 
but
 
detailed
 
plans
 
and
 
strategies
 
to
 
cut
emissions
 
already
 
during
 
this
 
decade
 
are
 
still
 
in
 
the
 
making.
 
In
 
the
energy
 
storage
 
markets,
 
activity
 
has
 
continued
 
at
 
a
 
good
 
level,
driven
 
by
 
the
 
increasing
 
need
 
for
 
short-term
 
flexible
 
capacity
 
in
power
 
systems
 
with
 
a
 
high
 
share
 
of
 
renewables.
 
Going
 
forward,
 
the
increasing
 
amount
 
of
 
intermittent
 
renewable
 
energy
 
in
 
power
systems
 
is
 
expected
 
to
 
bring
 
forward
 
the
 
need
 
for
 
various
 
flexible
solutions,
 
such
 
as
 
energy
 
storage
 
and
 
balancing
 
power
 
plants.
Target
Development
 
in
 
2021
Development
 
in
 
2020
Organic
 
growth
 
in
 
net
 
sales
 
5%
6%
-9%
Operating
 
margin
 
12%
6.6%
5.1%
Gearing
 
below
 
0.50
0.00
0.18
Dividend
 
payment
 
at
 
least
 
50%
 
of
 
earnings
 
per
 
share
 
over
 
the
 
cycle
73.2%*
88.2%
*Proposal
 
of
 
the
 
Board
 
of
 
Directors
wartsila-2021-12-31p1i0 wartsila-2021-12-31p3i4 wartsila-2021-12-31p3i3 wartsila-2021-12-31p3i2
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
Group
 
net
 
sales
 
devel
pment
Result
 
Megawatts
 
delivered
2021
 
2020
 
Change
Marine
 
Power
1,315
1,257
 
5%
Energy
 
1,402
 
1,172
 
20%
Wärtsilä
 
total
 
2,717
 
2,429
 
12%
By
 
joint
 
venture
250
274
 
9%
Deliveries
 
total
2,967
2,703
10%
*Restated
 
due
 
to
 
IFRS
 
15
*Restated
 
due
 
to
 
IFRS
 
15
Financial
 
stimuli
 
by
 
governments
 
and
 
financial
 
institutions
 
to
 
the
energy
 
sector
 
are
 
intended
 
to
 
support
 
investments
 
in
 
green
 
energy,
but
 
the
 
execution
 
of
 
such
 
plans
 
on
 
a
 
wider
 
scale
 
is
 
still
 
pending.
Demand
 
for
 
services
 
was
 
at
 
a
 
good
 
level,
 
and
 
customers
 
continued
to
 
show
 
interest
 
in
 
long-term
 
agreements,
 
thus
 
providing
 
stability
 
to
the
 
business
 
that
 
is
 
lumpy
 
by
 
nature.
Wärtsilä’s
 
market
 
share
 
in
 
the
 
up
 
to
 
500
 
MW
 
market
 
segment
decreased
 
to
 
5%
 
(6),
 
while
 
global
 
orders
 
for
 
natural
 
gas
 
and
 
liquid
power
 
plants
 
increased
 
by
 
10%
 
to
 
19.2
 
GW
 
during
 
the
 
twelve-
month
 
period
 
ending
 
in
 
September
 
2021
 
(17.4
 
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
 
in
 
take
 
and
 
order
 
book
Wärtsilä’s
 
order
 
intake
 
in
 
2021
 
increased
 
by
 
32%
 
to
 
EUR
 
5,735
million
 
(4,359)
 
compared
 
to
 
the
 
low
 
ordering
 
levels
 
of
 
the
corresponding
 
period
 
in
 
the
 
previous
 
year.
 
Book-to-bill
 
was
 
1.20
(0.95).
 
Service
 
order
 
intake
 
increased
 
by
 
17%
 
to
 
EUR
 
2,656
 
million
(2,267),
 
reflecting
 
improved
 
market
 
sentiment
 
in
 
the
 
marine
markets.
 
Equipment
 
order
 
intake
 
increased
 
by
 
47%
 
to
 
EUR
 
3,079
million
 
(2,091),
 
driven
 
by
 
strong
 
demand
 
for
 
energy
 
storage
solutions
 
and
 
a
 
few
 
important
 
power
 
plant
 
orders.
The
 
order
 
book
 
at
 
the
 
end
 
of
 
the
 
year
 
increased
 
by
 
16%
 
to
 
EUR
5,859
 
million
 
(5,057)
 
despite
 
divestments
 
of
 
certain
 
business
 
units.
Wärtsilä’s
 
current
 
order
 
book
 
for
 
2022
 
deliveries
 
is
 
EUR
 
3,763
million
 
(3,298).
Net
 
sales
 
and
 
operating
 
result
Wärtsilä’s
net
 
sales
 
in
 
2021
 
increased
 
by
 
4%
 
to
 
EUR
 
4,778
 
million
(4,604)
 
compared
 
to
 
the
 
previous
 
year.
 
Service
 
net
 
sales
 
increased
by
 
11%
 
to
 
EUR
 
2,499
 
million
 
(2,255)
 
on
 
the
 
back
 
of
 
a
 
weak
comparison
 
year.
 
Equipment
 
net
 
sales
 
decreased
 
by
 
3%
 
to
 
EUR
2,279
 
million
 
(2,349).
 
Of
 
Wärtsilä’s
 
net
 
sales,
 
approximately
 
60%
was
 
EUR
 
denominated
 
and
 
25%
 
USD
 
denominated,
 
with
 
the
remainder
 
being
 
split
 
between
 
several
 
currencies.
The
 
operating
 
result
 
amounted
 
to
 
EUR
 
314
 
million
 
(234)
 
or
 
6.6%
 
of
net
 
sales
 
(5.1).
 
The
 
improvement
 
in
 
profitability
 
was
 
driven
 
by
 
a
more
 
favourable
 
sales
 
mix
 
between
 
equipment
 
and
 
services,
 
as
well
 
as
 
improved
 
service
 
capacity
 
utilisation.
 
However,
 
the
operating
 
result
 
continued
 
to
 
be
 
burdened
 
by
 
Covid-19
 
driven
 
cost
inflation
 
and
 
challenges
 
in
 
the
 
utilisation
 
of
 
personnel,
 
under-
absorption
 
of
 
factory
 
capacity
 
cost,
 
pressure
 
on
 
cost
 
of
 
supply
 
and
logistics,
 
as
 
well
 
as
 
by
 
approximately
 
EUR
 
20
 
million
 
net
 
provisions
arising
 
from
 
a
 
detailed
 
project
 
risk
 
review
 
conducted
 
in
 
the
 
first
quarter
 
in
 
Wärtsilä
 
Energy.
 
The
 
comparable
 
operating
 
result
totalled
 
EUR
 
357
 
million
 
(275)
 
or
 
7.5%
 
of
 
net
 
sales
 
(6.0).
 
Items
affecting
 
comparability
 
comprised
 
costs
 
of
 
EUR
 
43
 
million
 
(41)
related
 
primarily
 
to
 
divestments,
 
restructuring
 
programmes,
 
and
footprint
 
adjustments.
 
The
 
comparable
 
adjusted
 
EBITA
 
amounted
to
 
EUR
 
388
 
million
 
(308)
 
or
 
8.1%
 
of
 
net
 
sales
 
(6.7).
 
Purchase
 
price
allocation
 
amortisation
 
amounted
 
to
 
EUR
 
31
 
million
 
(33).
Financial
 
items
 
amounted
 
to
 
EUR
 
-18
 
million
 
(-43).
 
Net
 
interest
totalled
 
EUR
 
-11
 
million
 
(-10).
 
Profit
 
before
 
taxes
 
amounted
 
to
 
EUR
296
 
million
 
(191).
 
Taxes
 
amounted
 
to
 
EUR
 
103
 
million
 
(58),
implying
 
an
 
effective
 
tax
 
rate
 
of
 
34.7%
 
(30.3).
 
Profit
 
for
 
the
 
financial
year
 
amounted
 
to
 
EUR
 
193
 
million
 
(133).
 
Basic
 
earnings
 
per
 
share
totalled
 
0.33
 
euro
 
(0.23).
 
Return
 
on
 
investment
 
(ROI)
 
was
 
9.7%
(7.1),
 
while
 
return
 
on
 
equity
 
(ROE)
 
was
 
8.6%
 
(5.8).
Financing
 
and
 
cash
 
flow
Wärtsilä’s
 
cash
 
flow
 
from
 
operating
 
activities
 
in
 
2021
 
totalled
 
EUR
731
 
million
 
(681),
 
supported
 
by
 
favourable
 
working
 
capital
development.
 
Working
 
capital
 
totalled
 
EUR
 
-100
 
million
 
at
 
the
 
end
of
 
the
 
year
 
(257).
 
Advances
 
received
 
totalled
 
EUR
 
498
 
million
(452).
 
There
 
were
 
no
 
additional
 
advances
 
pertaining
 
to
 
assets
 
held
for
 
sale
 
(38).
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
 
loan
portfolio.
Cash
 
and
 
cash
 
equivalents
 
amounted
 
to
 
EUR
 
964
 
million
 
at
 
the
end
 
of
 
the
 
year
 
(919).
 
There
 
were
 
no
 
additional
 
cash
 
or
 
cash
equivalents
 
pertaining
 
to
 
assets
 
held
 
for
 
sale
 
(14).
 
Unutilised
committed
 
credit
 
facilities
 
totalled
 
EUR
 
650
 
million
 
(660).
wartsila-2021-12-31p1i0 wartsila-2021-12-31p4i3
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
wartsila-2021-12-31p4i0
 
 
 
 
 
 
 
 
 
 
 
 
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
150
300
450
600
750
2021
2022
2023
2024
2025
2026
2027
MEUR
20
40
60
80
100
120
140
160
180
200
22
23
24
25
26
27
28
29
30
31
32
32+
MEUR
Annual
 
repayments
 
of
 
long-term
 
loans
0,00
0,10
0,20
0,30
0,40
0,50
2017
2018
2019
2020
2021
0
100
200
300
400
2017
2018
2019
2020
2021
MEUR
Related
 
to
 
acquisitions
Other
 
capital
 
expenditure
Depreciation,
 
amortisation,
 
and
 
impairment
Maturity
 
profiles
 
of
 
long
 
-term
 
loans
Gearing
 
Wärtsilä
 
had
 
interest-bearing
 
debt
 
totalling
 
EUR
 
973
 
million
 
at
 
the
end
 
of
 
the
 
year
 
(1,327).
 
The
 
total
 
amount
 
of
 
short-term
 
debt
maturing
 
within
 
the
 
next
 
12
 
months
 
was
 
EUR
 
121
 
million.
 
Long-
term
 
loans
 
amounted
 
to
 
EUR
 
851
 
million.
Net
 
interest-bearing
 
debt
 
totalled
 
EUR
 
4
 
million
 
(394).
 
Gearing
 
was
0.00
 
(0.18),
 
while
 
the
 
solvency
 
ratio
 
was
 
38.6%
 
(38.1).
 
Equity
 
per
share
 
was
 
3.92
 
euro
 
(3.68).
Committed
 
revolving
 
credit
 
facilities
 
(end
 
of
 
period)
Capital
 
expenditure
Capital
 
expenditure
 
related
 
to
 
intangible
 
assets
 
and
 
property,
 
plant,
and
 
equipment
 
amounted
 
to
 
EUR
 
142
 
million
 
(115)
 
in
 
2021,
 
largely
driven
 
by
 
the
 
construction
 
of
 
Smart
 
Technology
 
Hub,
 
a
 
new
 
centre
of
 
research,
 
product
 
development,
 
and
 
manufacturing
 
in
 
Vaasa,
Finland.
 
Capital
 
expenditure
 
related
 
to
 
acquisitions
 
and
investments
 
in
 
securities
 
totalled
 
EUR
 
1
 
million
 
(2).
 
Depreciation,
amortisation,
 
and
 
impairment
 
amounted
 
to
 
EUR
 
162
 
million
 
(174),
including
 
depreciation
 
and
 
impairment
 
of
 
right
 
of
 
use
 
assets
 
of
 
EUR
47
 
million
 
(47).
Gross
 
capital
 
expenditure
In
 
2022,
 
capital
 
expenditure
 
related
 
to
 
intangible
 
assets
 
and
property,
 
plant,
 
and
 
equipment
 
is
 
expected
 
to
 
be
 
at
 
around
 
the
same
 
level
 
as
 
depreciation,
 
amortisation,
 
and
 
impairment.
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
 
clean
 
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
 
offering,
 
Wärtsilä
 
goes
 
beyond
 
the
 
mere
maintenance
 
and
 
operation
 
of
 
installations
 
by
 
delivering
guaranteed
 
performance
 
based
 
on
 
mutually
 
agreed
 
target
 
levels.
Research
 
and
 
development
 
expenditure
 
totalled
 
EUR
 
175
 
million
(153)
 
in
 
2021,
 
which
 
represents
 
3.7%
 
of
 
net
 
sales
 
(3.3).
In
 
March,
 
Wärtsilä
 
announced
 
that
 
it
 
has
 
conducted
 
extensive
research
 
and
 
development
 
work
 
in
 
exploring
 
ways
 
by
 
which
 
carbon
capture
 
and
 
storage
 
(CCS)
 
can
 
be
 
developed
 
and
 
scaled
 
in
 
the
maritime
 
industry.
 
To
 
further
 
accelerate
 
the
 
development,
 
Wärtsilä
is
 
in
 
the
 
process
 
of
 
carrying
 
out
 
commissioning
 
of
 
a
 
1
 
MW
 
pilot
plant
 
installation
 
at
 
its
 
test
 
facility
 
in
 
Moss,
 
Norway.
 
This
 
pilot
 
plant
wartsila-2021-12-31p1i0
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
will
 
allow
 
Wärtsilä
 
to
 
test
 
its
 
CCS
 
technologies
 
in
 
a
 
range
 
of
scenarios
 
and
 
conditions.
 
With
 
this
 
announcement,
 
Wärtsilä
highlights
 
the
 
potential
 
for
 
exhaust
 
gas
 
abatement
 
systems
 
to
directly
 
tackle
 
maritime
 
carbon
 
dioxide
 
(CO2)
 
emissions
 
in
 
the
 
near
future
 
as
 
the
 
technology
 
advances.
 
This
 
will
 
enable
 
manufacturers
to
 
design
 
and
 
upgrade
 
scrubbers
 
to
 
capture
 
carbon
 
at
 
the
 
point
 
of
exhaust.
 
Wärtsilä’s
 
continued
 
research
 
and
 
development
 
into
carbon
 
capture
 
at
 
the
 
point
 
of
 
exhaust
 
was
 
further
 
reinforced
 
in
October,
 
as
 
Wärtsilä
 
and
 
Solvang
 
ASA,
 
a
 
Norwegian
 
shipping
company,
 
agreed
 
on
 
a
 
full-scale
 
pilot
 
retrofit
 
installation
 
of
 
a
 
CCS
system
 
for
 
one
 
of
 
Solvang’s
 
ethylene
 
carriers,
 
the
 
21,000-cbm
Clipper
 
Eos.
In
 
March,
 
Wärtsilä
 
launched
 
grid
 
balancing
 
technology
 
as
 
part
 
of
 
a
portfolio
 
of
 
products
 
designed
 
to
 
cost
 
effectively
 
accelerate
 
the
energy
 
transition.
 
The
 
portfolio
 
consists
 
of
 
power
 
plants,
 
as
 
well
 
as
energy
 
storage
 
and
 
energy
 
management
 
systems.
 
The
 
first
 
power
plant
 
solution
 
in
 
the
 
portfolio
 
is
 
powered
 
by
 
the
 
upgraded
 
Wärtsilä
34SG
 
Balancer
 
engine,
 
optimised
 
for
 
renewable
 
baseload
 
markets.
The
 
engine
 
can
 
ramp
 
up
 
to
 
full
 
load
 
in
 
two
 
minutes,
 
and
 
can
currently
 
run
 
on
 
natural
 
gas,
 
biogas,
 
synthetic
 
methane,
 
or
hydrogen
 
blends.
In
 
June,
 
Wärtsilä
 
and
 
the
 
classification
 
society
 
RINA
 
announced
 
a
novel
 
ship
 
propulsion
 
arrangement
 
that
 
offers
 
full
 
redundancy,
 
less
machinery,
 
lower
 
capital
 
expenditure,
 
reduced
 
operational
complexity,
 
and
 
optimised
 
fuel
 
consumption
 
to
 
lower
 
costs
 
and
achieve
 
emissions
 
compliance.
 
The
 
conventional
 
approach
 
in
 
ship
design
 
has
 
been
 
to
 
use
 
2-stroke
 
engines
 
for
 
propulsion
 
and
 
4-
stroke
 
engines
 
for
 
electric
 
power
 
generation.
 
The
 
Wärtsilä
 
/
 
RINA
arrangement,
 
however,
 
requires
 
just
 
two
 
4-stroke
 
dual-fuel
 
(DF)
engines,
 
with
 
options
 
for
 
electric
 
power
 
back-up
 
from
 
batteries
 
or
 
a
small
 
DF
 
generator
 
when
 
the
 
ship
 
is
 
idle.
 
The
 
design,
 
featuring
Wärtsilä
 
31DF
 
engines
 
operating
 
with
 
LNG
 
fuel,
 
can
 
achieve
 
a
reduction
 
of
 
up
 
to
 
50%
 
from
 
the
 
Energy
 
Efficiency
 
Design
 
Index
(EEDI)
 
reference
 
level
 
value,
 
and
 
immediate
 
compliance
 
with
 
the
IMO’s
 
2030
 
targets.
In
 
June,
 
Wärtsilä
 
announced
 
that
 
it
 
would
 
showcase
 
its
 
Power-to-X
competence
 
at
 
the
 
World
 
Expo
 
in
 
Dubai
 
in
 
cooperation
 
with
Soletair
 
Power
 
and
 
Q
 
Power.
 
The
 
demonstration
 
unit
 
creates
synthetic
 
fuel
 
from
 
CO2
 
extracted
 
from
 
the
 
indoor
 
air.
 
Power-to-X
technology
 
can
 
be
 
seen
 
as
 
an
 
important
 
stepping
 
stone
 
along
 
the
path
 
towards
 
carbon-neutral
 
fuels
 
and
 
the
 
decarbonisation
 
of
various
 
industries.
In
 
June,
 
Wärtsilä
 
and
 
Schneider
 
Electric
 
announced
 
that
 
they
 
have
together
 
developed
 
a
 
unique,
 
end-to-end
 
power
 
system
 
reference
design.
 
It
 
is
 
aimed
 
specifically
 
at
 
lithium
 
mine
 
operations
 
where
there
 
is
 
no
 
access
 
to
 
a
 
grid
 
supply
 
of
 
electricity.
 
The
 
solution
contributes
 
to
 
sustainable
 
lithium
 
production
 
by
 
optimising
 
the
efficient
 
delivery
 
and
 
use
 
of
 
energy,
 
as
 
well
 
as
 
by
 
leveraging
microgrids
 
and
 
enabling
 
the
 
use
 
of
 
renewable
 
energy
 
sources.
In
 
July,
 
Wärtsilä
 
launched
 
a
 
major
 
test
 
programme
 
towards
 
carbon-
free
 
solutions
 
with
 
hydrogen
 
and
 
ammonia.
 
The
 
company
 
is
pioneering
 
the
 
adoption
 
of
 
hydrogen
 
and
 
ammonia
 
as
 
viable
 
engine
fuels
 
through
 
advanced
 
testing
 
in
 
Wärtsilä’s
 
fuel-flexible
combustion
 
engines.
 
Hydrogen
 
and
 
ammonia
 
contain
 
no
 
carbon,
meaning
 
the
 
combustion
 
releases
 
no
 
CO2
 
emissions.
 
The
 
full-
scale
 
engine
 
test
 
results
 
are
 
very
 
encouraging,
 
with
 
one
 
test
 
engine
performing
 
very
 
well
 
when
 
running
 
on
 
a
 
fuel
 
with
 
70%
 
ammonia
content
 
at
 
a
 
typical
 
marine
 
load
 
range.
 
Tests
 
were
 
also
 
completed
successfully
 
on
 
another
 
engine
 
operating
 
on
 
pure
 
hydrogen.
 
For
the
 
energy
 
market,
 
Wärtsilä
 
expects
 
to
 
have
 
an
 
engine
 
and
 
plant
concept
 
for
 
pure
 
hydrogen
 
operation
 
ready
 
by
 
2025.
 
For
 
the
 
marine
market,
 
Wärtsilä
 
continued
 
to
 
run
 
tests
 
with
 
an
 
engine
 
running
 
on
an
 
ammonia
 
blend,
 
and
 
anticipates
 
having
 
an
 
ammonia
 
engine
concept
 
ready
 
in
 
2023.
 
Wärtsilä
 
is
 
also
 
developing
 
ammonia
storage
 
and
 
supply
 
systems
 
as
 
part
 
of
 
the
 
EU’s
 
ShipFC
 
project.
 
In
addition,
 
Wärtsilä
 
will
 
begin
 
testing
 
ammonia
 
in
 
a
 
marine
 
4-stroke
combustion
 
engine
 
together
 
with
 
Knutsen
 
OAS,
 
Repsol
 
Norway
and
 
Equinor
 
at
 
the
 
Sustainable
 
Energy
 
Catapult
 
Centre
 
in
 
Stord,
Norway,
 
as
 
part
 
of
 
the
 
Demo2000
 
project.
 
In
 
July,
 
Wärtsilä
 
Voyage’s
 
NTPRO
 
(Navi-Trainer
 
Professional
5000)
 
navigational
 
simulator
 
was
 
awarded
 
certification
 
according
 
to
the
 
new
 
DNV
 
Class
 
D
 
standard
 
for
 
cloud-based
 
simulators
 
making
 
it
 
the
 
first
 
certified
 
cloud
 
solution
 
that
 
offers
 
both
 
interactive
instructor-led
 
and
 
student-led
 
training.
 
With
 
this,
 
the
 
navigational
simulator
 
now
 
has
 
full
 
compliance
 
(Class
 
A,
 
B,
 
C,
 
D)
 
with
 
DNV’s
ST-0033
 
Maritime
 
Simulator
 
Systems
 
standard.
 
The
 
maritime
industry
 
is
 
in
 
the
 
process
 
of
 
identifying
 
those
 
learning
 
events
 
that
can
 
effectively
 
be
 
conducted
 
remotely,
 
and
 
those
 
that
 
require
 
a
physical
 
presence
 
or
 
team
 
interactions
 
at
 
a
 
training
 
facility.
 
Wärtsilä
cloud
 
solutions,
 
however,
 
are
 
certified
 
to
 
provide
 
both
 
the
interactive
 
exercise
 
control
 
required
 
for
 
mandatory
 
training
 
and
examination,
 
as
 
well
 
as
 
self-directed
 
detached
 
exercise
 
and
assessment
 
to
 
enhance
 
or
 
supplement
 
instructor
 
controlled
simulations.
 
In
 
August,
 
Wärtsilä
 
introduced
 
an
 
upgraded
 
version
 
of
 
its
successful
 
Wärtsilä
 
20DF
 
dual-fuel
 
engine.
 
The
 
new
 
version
 
will
deliver
 
increased
 
power
 
output,
 
have
 
a
 
reduced
 
environmental
impact,
 
and
 
will
 
feature
 
lower
 
fuel
 
consumption.
 
It
 
will
 
also
 
further
increase
 
the
 
engine’s
 
fuel
 
flexibility
 
by
 
allowing
 
a
 
much
 
wider
 
gas
quality
 
span.
 
The
 
engine’s
 
power
 
per
 
cylinder
 
is
 
increased
 
from
185
 
to
 
195
 
kW,
 
while
 
methane
 
slip
 
is
 
lowered
 
by
 
as
 
much
 
as
 
40%,
thereby
 
drastically
 
reducing
 
CO2
 
emissions.
In
 
September,
 
the
 
first
 
vessel
 
fitted
 
with
 
Wärtsilä
 
battery
 
containers,
the
 
‘Alphenaar’,
 
commenced
 
operations
 
in
 
the
 
Netherlands.
 
The
vessel
 
transports
 
beer
 
for
 
Heineken,
 
the
 
first
 
customer
 
of
 
the
service.
 
Wärtsilä
 
has
 
developed
 
and
 
delivered
 
this
 
mobile
 
battery
container
 
solution
 
that
 
will
 
enable
 
inland
 
waterway
 
vessels
 
to
operate
 
with
 
zero
 
emissions.
 
The
 
104
 
TEU
 
inland
 
waterway
container
 
vessel
 
has
 
been
 
modified
 
to
 
allow
 
two
 
battery
 
container
units
 
to
 
be
 
mounted
 
onboard.
 
The
 
system
 
enables
 
the
 
vessel
 
to
operate
 
on
 
full
 
electric
 
power
 
alone,
 
with
 
no
 
carbon
 
emissions
being
 
generated.
 
When
 
discharged,
 
the
 
containers
 
can
 
be
exchanged
 
and
 
charged
 
onshore
 
using
 
energy
 
from
 
renewable
sources.
In
 
November,
 
Wärtsilä
 
announced
 
that
 
it
 
will
 
commercially
 
launch
its
 
2-stroke
 
future
 
fuels
 
conversion
 
platform
 
during
 
the
 
first
 
quarter
of
 
2022.
 
This
 
innovative
 
and
 
patented
 
engine
 
combustion
technology
 
platform
 
will
 
enable
 
the
 
fast
 
and
 
cost-effective
conversion
 
of
 
2-stroke
 
main
 
engines
 
to
 
operate
 
on
 
clean-burning
future
 
fuels.
 
This
 
is
 
seen
 
as
 
a
 
major
 
step
 
in
 
the
 
maritime
 
industry’s
efforts
 
to
 
achieve
 
decarbonised
 
shipping
 
operations,
 
while
 
the
 
easy
retrofitting
 
will
 
avoid
 
owners
 
having
 
to
 
face
 
long
 
off-hire
 
charter
time.
 
The
 
retrofit
 
conversion
 
will
 
initially
 
enable
 
operation
 
with
currently
 
available
 
LNG
 
fuel,
 
most
 
importantly
 
with
 
negligible
methane
 
slip
 
from
 
the
 
engine.
 
The
 
modular
 
design
 
of
 
this
 
concept
provides
 
a
 
platform
 
that
 
will
 
be
 
further
 
developed
 
to
 
allow
 
for
 
the
adoption
 
of
 
alternative
 
green
 
fuels
 
or
 
fuel
 
blends
 
when
 
they
become
 
commercially
 
available.
 
The
 
development
 
programme
 
has
recently
 
been
 
concluded
 
with
 
successful
 
initial
 
engine
 
tests
 
in
 
the
Wärtsilä
 
2-stroke
 
engine
 
laboratory
 
in
 
Trieste.
wartsila-2021-12-31p1i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
wartsila-2021-12-31p6i0
 
 
 
 
 
 
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
0,0
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50
100
150
200
2017
2018
2019
2020
2021
MEUR
R&D
 
expenditure
Percentage
 
of
 
net
 
sales
In
 
November,
 
Wärtsilä
 
launched
 
its
 
new
 
IQ
 
Series
 
exhaust
 
gas
treatment
 
system.
 
The
 
IQ
 
Series
 
is
 
the
 
latest
 
advancement
 
in
maritime
 
exhaust
 
gas
 
treatment
 
technologies,
 
featuring
 
several
improvements
 
that
 
make
 
the
 
technology
 
especially
 
well-suited
 
to
container
 
vessels,
 
where
 
it
 
meets
 
the
 
demand
 
for
 
scrubbers
 
as
 
a
compliance
 
option.
 
The
 
IQ
 
Series
 
scrubber
 
uses
 
an
 
innovative
design
 
that
 
allows
 
the
 
same
 
exhaust
 
gas
 
cleaning
 
results
 
to
 
be
achieved
 
with
 
a
 
smaller
 
footprint.
 
The
 
scrubber
 
takes
 
up
 
25%
 
less
space,
 
is
 
30%
 
lighter,
 
and
 
has
 
35%
 
less
 
volume,
 
which
 
minimises
the
 
impact
 
on
 
a
 
vessel’s
 
cargo-carrying
 
capacity,
 
and
 
therefore
 
its
profitability.
Research
 
and
 
development
 
expenditure
 
 
Strategic
 
projects
In
 
January,
 
Wärtsilä
 
signed
 
a
 
letter
 
of
 
intent
 
with
 
the
 
energy
companies
 
Vaasan
 
Sähkö
 
and
 
EPV
 
Energia
 
and
 
the
 
City
 
of
 
Vaasa
to
 
cooperate
 
in
 
a
 
project
 
aiming
 
at
 
utilising
 
emissions-free
hydrogen
 
in
 
power
 
production,
 
industry,
 
and
 
traffic
 
applications.
The
 
goal
 
is
 
to
 
jointly
 
build
 
a
 
Power-to-X-to-Power
 
system
 
in
 
Vaasa,
Finland
 
and
 
to
 
pilot
 
a
 
hydrogen-based
 
energy
 
generation
 
solution
suitable
 
for
 
export
 
markets.
 
In
 
March,
 
Wärtsilä
 
made
 
a
 
further
 
EUR
 
1
 
million
 
investment
 
in
Soletair
 
Power
 
Oy,
 
a
 
Finnish
 
company
 
developing
 
CO2
 
direct
 
air
capture
 
technology.
 
The
 
investment
 
enables
 
Soletair
 
Power
 
to
further
 
its
 
global
 
sales
 
efforts
 
and
 
to
 
scale
 
up
 
the
 
manufacturing
 
of
its
 
CO2
 
capture
 
solution
 
for
 
building
 
ventilation
 
applications.
Wärtsilä’s
 
original
 
investment
 
of
 
EUR
 
500,000
 
in
 
the
 
company
 
was
made
 
in
 
2019.
In
 
April,
 
Wärtsilä
 
partnered
 
with
 
Tanger
 
Med,
 
the
 
largest
Mediterranean
 
and
 
African
 
container
 
port,
 
to
 
take
 
a
 
new
 
step
forward
 
in
 
global
 
port
 
efficiency
 
by
 
co-developing
 
a
 
new
 
cutting-
edge
 
Port
 
Management
 
Information
 
System
 
(PMIS).
 
Both
organisations
 
sealed
 
their
 
long-term
 
commitment
 
to
 
deploy
 
modern
Smart
 
Port
 
tools
 
for
 
port
 
operations
 
and
 
digitalisation
 
 
including
implementing
 
Just-In-Time
 
(JIT)
 
solutions,
 
machine
 
learning
 
and
artificial
 
intelligence,
 
as
 
well
 
as
 
other
 
innovative
 
solutions.
 
The
 
new
PMIS
 
is
 
aimed
 
at
 
addressing
 
the
 
needs
 
of
 
the
 
leading
 
maritime
liners
 
and
 
alliances
 
calling
 
at
 
Tanger
 
Med
 
Port
 
Complex,
 
to
optimise
 
their
 
vessel
 
calls,
 
and
 
to
 
use
 
standardised
 
master
 
and
event
 
data.
 
In
 
June,
 
Wärtsilä
 
and
 
Vantaa
 
Energy
 
Ltd,
 
a
 
Finnish
 
utility,
 
signed
 
a
co-operation
 
agreement
 
for
 
the
 
pre-engineering
 
and
 
development
of
 
a
 
Power-to-Gas
 
plant
 
for
 
Vantaa
 
Energy.
 
The
 
plant,
 
planned
 
to
be
 
commissioned
 
in
 
2025,
 
would
 
produce
 
carbon-neutral,
 
synthetic
methane
 
on
 
a
 
commercial
 
scale
 
with
 
a
 
fuel
 
capacity
 
of
 
10
 
MW.
Synthetic
 
methane
 
is
 
produced
 
from
 
captured
 
carbon
 
dioxide
 
and
hydrogen
 
produced
 
with
 
renewable
 
energy.
In
 
July,
 
Wärtsilä
 
and
 
the
 
Korean
 
shipbuilding
 
company
 
Samsung
Heavy
 
Industries
 
(SHI)
 
signed
 
a
 
joint
 
development
 
programme
agreement
 
aimed
 
at
 
developing
 
ammonia-fuelled
 
vessels
 
with
 
4-
stroke
 
auxiliary
 
engines
 
for
 
future
 
newbuild
 
projects.
 
Wärtsilä
 
has
 
a
leading
 
role
 
in
 
developing
 
engines
 
for
 
operation
 
on
 
future
 
clean
fuels.
 
According
 
to
 
SHI,
 
the
 
most
 
likely
 
initial
 
newbuild
 
targets
 
for
ships
 
utilising
 
ammonia
 
fuel
 
will
 
be
 
container
 
vessels
 
and
 
very
large
 
crude
 
carriers,
 
operating
 
with
 
2-stroke
 
main
 
engines
 
and
 
4-
stroke
 
Wärtsilä
 
auxiliary
 
engines.
 
In
 
September,
 
Wärtsilä
 
advanced
 
its
 
carbon
 
capture
 
and
 
storage
(CCS)
 
capabilities
 
for
 
maritime
 
applications
 
as
 
part
 
of
 
the
 
LINCCS
(linking
 
carbon
 
capture
 
and
 
storage)
 
consortium.
 
The
 
LINCCS
project
 
is
 
focused
 
on
 
reducing
 
costs
 
for
 
new
 
carbon
 
storage
facilities
 
by
 
70%
 
and
 
advancing
 
the
 
development
 
of
 
carbon
 
capture
technologies
 
in
 
a
 
range
 
of
 
sectors.
 
It
 
was
 
also
 
announced
 
that
 
the
LINCCS
 
consortium
 
would
 
receive
 
NOK
 
111
 
million
 
from
 
the
Norwegian
 
government’s
 
Green
 
Platform
 
Initiative
 
over
 
the
 
next
three
 
years.
 
Carbon
 
capture
 
technology
 
can
 
be
 
a
 
significant
enabler
 
for
 
the
 
decarbonisation
 
of
 
the
 
maritime
 
industry,
 
and
 
one
 
of
the
 
major
 
workstreams
 
of
 
the
 
LINCCS
 
project
 
is
 
to
 
bring
 
to
 
market
a
 
maritime
 
CCS
 
solution.
 
Wärtsilä
 
will
 
lead
 
this
 
workstream
 
with
support
 
from
 
the
 
Sustainable
 
Energy
 
Catapult
 
Center
 
and
 
SINTEF
Energy.
In
 
October,
 
Wärtsilä
 
and
 
Eidesvik
 
Offshore
 
ASA
 
signed
 
a
 
landmark
cooperation
 
agreement
 
aimed
 
at
 
converting
 
an
 
offshore
 
supply
vessel
 
(OSV)
 
to
 
operate
 
with
 
an
 
ammonia-fuelled
 
combustion
engine,
 
and
 
with
 
the
 
required
 
fuel
 
supply
 
and
 
safety
 
system.
 
This
project
 
will
 
be
 
the
 
first
 
of
 
its
 
kind
 
ever
 
in
 
the
 
world
 
and
 
has
 
a
provisional
 
completion
 
target
 
by
 
the
 
end
 
of
 
2023.
 
The
 
OSV
considered
 
for
 
a
 
retrofit
 
currently
 
has
 
Wärtsilä
 
dual-fuel
 
engines
operating
 
primarily
 
with
 
LNG
 
fuel.
 
The
 
conversion
 
will
 
allow
 
the
vessel
 
to
 
operate
 
with
 
a
 
70%
 
ammonia
 
blend.
 
The
 
ultimate
 
goal
 
is
to
 
achieve
 
operation
 
with
 
100%
 
ammonia
 
and
 
with
 
a
 
minimum
ignition
 
fuel
 
requirement.
In
 
November,
 
Wärtsilä
 
Voyage
 
signed
 
a
 
landmark
 
agreement
 
with
the
 
Maritime
 
and
 
Port
 
Authority
 
of
 
Singapore
 
(MPA)
 
to
 
further
strengthen
 
their
 
collaboration
 
in
 
smart
 
port
 
innovation
 
and
digitalisation.
 
The
 
main
 
objectives
 
of
 
this
 
strategic
 
partnership
 
are
to
 
initiate,
 
develop,
 
and
 
promote
 
innovative
 
solutions
 
that
accelerate
 
digitalisation;
 
to
 
foster
 
interoperability
 
in
 
e-navigation
and
 
ship-to-shore
 
secure
 
data
 
communications
 
to
 
enable
 
port-to-
port
 
optimisation;
 
and
 
to
 
establish
 
reliable,
 
cyber
 
safe
 
and
 
cost-
effective
 
information
 
exchange
 
pathways
 
between
 
all
 
ecosystem
partners
 
to
 
increase
 
operational
 
efficacy.
Personnel
Wärtsilä
 
had
 
17,305
 
(17,792)
 
employees
 
at
 
the
 
end
 
of
 
the
 
year.
 
On
average,
 
the
 
number
 
of
 
personnel
 
totalled
 
17,461
 
(18,307)
 
in
 
the
year
 
of
 
2021.
 
Of
 
Wärtsilä’s
 
total
 
number
 
of
 
employees,
 
21%
 
(21)
 
were
 
located
 
in
Finland
 
and
 
40%
 
(41)
 
elsewhere
 
in
 
Europe.
 
Personnel
 
employed
 
in
Asia
 
represented
 
21%
 
(22)
 
of
 
the
 
total,
 
personnel
 
in
 
the
 
Americas
12%
 
(11),
 
and
 
personnel
 
in
 
other
 
countries
 
5%
 
(5).
wartsila-2021-12-31p7i2
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
wartsila-2021-12-31p7i0
 
 
 
 
 
 
 
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
5
 
000
10
 
000
15
 
000
20
 
000
2017
2018
2019
2020
2021
Personnel
 
at
 
the
 
end
 
of
 
the
 
financial
 
period
Personnel
 
on
 
average
Personnel
 
in
 
Finland
Personnel
Changes
 
in
 
management
 
Håkan
 
Agnevall
 
(b.
 
1966,
 
M.Sc.
 
(Tech),
 
MBA)
 
assumed
 
the
position
 
of
 
President
 
and
 
CEO
 
for
 
Wärtsilä
 
Corporation
 
on
 
1
February
 
2021.
 
He
 
succeeded
 
Jaakko
 
Eskola,
 
who
 
continued
 
as
 
a
senior
 
advisor
 
to
 
the
 
Board
 
and
 
executive
 
team
 
until
 
his
 
retirement
on
 
30
 
June
 
2021.
In
 
August,
 
Wärtsilä
 
appointed
 
Teija
 
Sarajärvi
 
(b.
 
1969,
 
MA)
 
as
Executive
 
Vice
 
President,
 
Human
 
Resources
 
and
 
member
 
of
 
the
Board
 
of
 
Management.
 
Ms
 
Sarajärvi
 
commenced
 
in
 
her
 
role
 
on
 
1
January
 
2022,
 
succeeding
 
Ms
 
Alid
 
Dettke.
Non
 
-financial
 
report
 
Increasing
 
environmental
 
awareness,
 
tightening
 
regulations,
customer
 
preferences,
 
and
 
the
 
need
 
to
 
decarbonise
 
operations
 
are
resulting
 
in
 
fundamental
 
changes
 
in
 
both
 
the
 
marine
 
and
 
energy
industries.
 
Wärtsilä
 
is
 
a
 
global
 
leader
 
in
 
innovative
 
technologies
and
 
lifecycle
 
solutions
 
for
 
the
 
marine
 
and
 
energy
 
markets.
 
Wärtsilä
emphasises
 
innovation
 
in
 
sustainable
 
technology
 
and
 
services
 
to
help
 
its
 
customers
 
continuously
 
improve
 
their
 
environmental
 
and
economic
 
performance.
 
Thanks
 
to
 
a
 
broad
 
range
 
of
 
technologies
and
 
specialised
 
services,
 
Wärtsilä
 
is
 
well
 
positioned
 
to
 
shape
decarbonisation
 
in
 
the
 
marine
 
and
 
energy
 
markets,
 
and
 
to
 
reduce
exhaust
 
emissions
 
and
 
the
 
use
 
of
 
natural
 
resources.
 
This
positioning
 
supports
 
customers
 
in
 
their
 
efforts
to
 
limit
 
their
 
carbon
footprint
and
 
achieve
 
regulatory
 
compliance.
 
Wärtsilä’s
 
R&D
 
efforts
continue
 
to
 
focus
 
on
 
the
 
development
 
of
 
advanced
 
environmental
technologies
 
and
 
solutions.
 
Wärtsilä
 
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
related
 
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
procurement.
Wärtsilä
 
takes
 
an
 
active
 
approach
 
to
 
the
 
application
 
of
 
the
 
Code
 
of
Conduct
 
and
 
promotes
 
its
 
implementation
 
through
 
effective
 
ly
communicating
 
its
 
contents
 
to
 
all
 
employees.
The
 
company
monitors
 
the
 
application
 
of
 
the
 
Code
 
internally
 
to
 
ensure
understanding
 
and
 
commitment
 
throughout
 
the
 
organisation.
 
As
 
at
the
 
end
 
of
 
2021,
 
16,712
 
employees,
 
covering
 
94%
 
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
Wärtsilä’s
products
 
and
 
services.
 
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
 
the
 
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.
 
In
 
addition
 
to
 
enabling
 
environmental
compliance,
this
 
also
supports
 
the
 
sustainable
 
development
 
of
 
the
marine
 
and
 
energy
 
industries.
 
Wärtsilä’s
 
products
 
and
 
solutions
 
are
designed
 
to
reliably
operate
 
for
 
up
 
to
 
30
 
years.
 
Therefore,
 
focusing
R&D
 
efforts
 
on
 
improving
 
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
 
products
 
and
 
solutions,
 
Wärtsilä
 
also
continuously
 
monitors
 
the
 
impact
 
caused
 
by
 
its
 
own
 
activities
 
and
targets
 
reduced
 
energy
 
consumption
 
in
 
all
 
its
 
facilities.
 
Wärtsilä’s
 
quality,
 
environmental,
 
health
 
and
 
safety
 
policy
 
sets
principles
 
for
 
managing
 
the
 
environmental
 
impacts
 
of
the
company’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
having
 
R&D
 
activities
focused
 
on
 
product
 
efficiency
improvements
 
and
 
emissions
 
reduction,
 
as
 
well
 
as
 
by
 
developing
 
a
broad
product
 
offering,
 
including
 
technologies
 
related
 
to
 
waste
reduction,
 
noise
 
abatement,
 
and
 
effluent
 
and
 
ballast
 
water
treatment.
 
During
 
2021,
 
R&D
 
expenditure
 
totalled
 
EUR
 
175
 
million,
which
 
represents
 
3.7%
 
of
 
net
 
sales.
 
The
 
majority
 
of
 
these
investments
 
targeted
 
improved
 
environmental
 
performance.
Significant
 
achievements
 
related
 
to
 
sustainable
 
innovation
 
included
progress
 
made
 
in
 
developing
 
engine
 
technology
 
to
 
run
 
on
 
zero-
carbon
 
fuels.
 
For
 
the
 
marine
 
markets,
 
Wärtsilä
 
continued
 
to
 
launch
 
solutions
 
that
support
 
its
 
purpose
 
to
 
enable
 
sustainable
 
societies
 
through
innovation
 
in
 
technology
 
and
 
services.
 
An
 
upgraded
 
version
 
of
 
the
20DF
 
dual-fuel
 
engine
 
was
 
introduced.
 
The
 
engine
 
can
 
now
 
deliver
more
 
power
 
with
 
less
 
energy
 
consumption,
 
while
 
its
 
methane
 
slip
 
is
lowered
 
by
 
40%.
 
In
 
the
 
energy
 
sector,
 
Wärtsilä
 
launched
 
grid
balancing
 
technology
 
as
 
part
 
of
 
a
 
portfolio
 
of
 
products
 
designed
 
to
cost
 
effectively
 
accelerate
 
the
 
energy
 
transition.
 
The
 
portfolio
consists
 
of
 
power
 
plants,
 
as
 
well
 
as
 
energy
 
storage
 
and
 
energy
management
 
systems.
 
Wärtsilä
 
announced
 
its
 
“Set
 
for
 
30”
 
commitment
 
to
 
achieve
ambitious
 
decarbonisation
 
targets.
 
Wärtsilä’s
 
goal
 
is
 
by
 
2030:
 
To
 
become
 
carbon-neutral
 
in
 
its
 
own
 
operations,
 
and
 
 
To
 
provide
 
a
 
product
 
portfolio
 
ready
 
for
 
zero-carbon
fuels.
wartsila-2021-12-31p7i2
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
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.
The
 
company
is
 
a
 
signatory
 
to
 
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
.
 
These
 
are
 
followed
 
by
 
all
Wärtsilä
entities
 
globally.
 
The
 
objective
 
of
 
Wärtsilä’s
 
people
 
strategy
 
is
 
to
 
ensure
 
that
 
the
businesses
 
have
 
the
 
required
 
skilled
 
and
 
motivated
 
resources
 
at
their
 
disposal.
 
In
 
order
 
to
 
develop
 
their
 
competences,
 
employees
are
 
offered
 
a
 
wide
 
variety
 
of
 
internal
 
training
 
courses,
 
including
topics
covering
technology,
 
health
 
and
 
safety,
 
language
 
and
culture,
 
project
 
management,
 
environment,
 
security,
 
and
leadership.
 
The
 
average
 
number
 
of
 
learning
 
days
 
was
 
1.1
 
per
employee
 
in
 
2021.
 
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
 
entities
 
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
 
2021,
 
the
 
corporate
 
lost-
time
 
injury
 
frequency
 
rate
 
was
 
1.55
 
(2.03).
 
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
 
to
 
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
policy
 
on
equal
 
opportunities
 
and
 
fair
 
employment
 
practices,
 
as
 
well
 
as
 
being
listed
 
in
 
the
 
company’s
 
supplier
 
handbook.
Anti
 
-corruption
 
and
 
bribery
 
ma
 
tters
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
 
the
 
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
 
high
 
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
 
on
 
the
 
relevant
 
company
 
policies
 
and
 
procedures.
 
By
 
the
end
 
of
 
2021,
 
88%
 
of
 
Wärtsilä’s
 
employees
 
had
 
participated
 
in
 
anti-
corruption
 
training
 
s
essions
.
 
Employees
 
are
 
encouraged
 
to
 
provide
feedback
 
and
 
communicate
 
suspected
 
misconduct
 
to
 
line
management
 
or
 
directly
 
to
 
the
 
Compliance,
 
Legal
 
Affairs,
 
or
Internal
 
Audit
 
functions.
 
Wärtsilä
 
also
 
has
 
a
 
dedicated
 
tool
 
through
which
 
employees
 
can
 
report
 
infringements.
EU
 
Sustainable
 
Finance
 
Taxonomy
 
disclosures
Wärtsilä’s
 
aim
 
is
 
to
 
shape
 
decarbonisation
 
in
 
the
 
marine
 
and
energy
 
markets.
 
Consequently,
 
decarbonisation
 
is
 
at
 
the
 
core
 
of
the
 
company’s
 
strategy.
 
Wärtsilä’s
 
strong
 
position,
 
competences,
and
 
capabilities
 
are
 
critical
 
enablers
 
to
 
successfully
 
achieving
 
these
ambitions,
 
and
 
enabling
 
its
 
customers
 
to
 
decarbonise
 
their
economic
 
activities.
 
Wärtsilä
 
has
 
a
 
key
 
role
 
to
 
play
 
in
 
decarbonising
 
vessels
 
and
 
the
overall
 
shipping
 
value
 
chain.
 
The
 
company’s
 
extensive
 
product
 
and
solution
 
portfolio,
 
including
 
engines,
 
propulsion
 
systems,
 
hybrid
solutions,
 
integrated
 
powertrain
 
systems,
 
emission
 
abatement
solutions,
 
and
 
voyage
 
optimisation
 
solutions
 
are
 
key
 
contributors
towards
 
zero-emissions
 
shipping.
 
The
 
energy
 
and
 
marine
 
sectors
 
still
 
largely
 
rely
 
on
 
the
 
use
 
of
 
fossil
fuels.
 
Wärtsilä’s
 
current
 
portfolio
 
already
 
enables
 
its
 
customers
 
to
switch
 
to
 
carbon-neutral
 
fuels,
 
such
 
as
 
biofuels
 
or
 
synthetic
methane.
Although
 
the
transition
 
from
 
fossil
 
fuels
 
to
 
carbon-neutral
or
 
carbon-free
 
fuels
 
will
 
happen
 
gradually,
 
Wärtsilä
is
 
already
positioned
 
to
 
assist
 
it
by
 
providing
 
technologies
 
that
 
allow
 
its
customers
 
to
 
use
 
more
 
sustainable
 
fuels
 
as
 
they
 
become
 
available.
In
 
energy,
 
Wärtsilä
 
technologies
 
enable
 
the
 
maximal
 
and
 
optimal
usage
 
of
 
renewable
 
energy
 
generation.
 
Flexible
 
engine
 
power
plants,
 
together
 
with
 
energy
 
storage
 
solutions,
 
improve
 
power
system
 
efficiency,
 
lower
 
greenhouse
 
gas
 
emissions,
 
and
 
safeguard
the
 
security
 
of
 
supply.
In
 
2021,
 
Wärtsilä
 
announced
 
its
 
goal
 
to
 
be
 
able
 
to
 
provide
 
a
product
 
portfolio
 
ready
 
for
 
zero-carbon
 
fuels.
 
The
 
company’s
 
aim
 
is
to
 
support
 
its
 
customers
 
on
 
their
 
decarbonisation
 
journey,
 
and
 
thus
shape
 
the
 
decarbonisation
 
of
 
the
 
marine
 
and
 
energy
 
sectors.
Wärtsilä’s
 
products
 
and
 
solutions
 
will
 
meet
 
the
 
most
 
stringent
environmental
 
requirements,
 
and
 
the
 
fuel
 
flexibility
 
of
 
the
 
engines
powering
 
these
 
sectors
 
is
 
key
 
to
 
enabling
 
the
 
transformation.
 
In
 
July
 
2021,
 
Wärtsilä
 
launched
 
a
 
major
 
test
 
programme
 
towards
carbon-free
 
solutions
 
with
 
hydrogen
 
and
 
ammonia
 
fuels.
 
Wärtsilä’s
fuel
 
agnostic
 
approach
 
enables
 
the
 
company
 
to
 
support
 
the
 
energy
and
 
marine
 
sectors
 
in
 
shaping
 
sustainable
 
and
 
efficient
 
future
 
fuel
strategies
 
in
 
several
 
cost-optimal
 
steps.
 
The
 
company
has
 
invested
continuously
 
and
 
systematically
 
in
 
R&D
 
and
 
has
 
made
 
a
 
long-term
effort
 
in
 
product
 
development
 
focusing
 
on
 
fuel
 
flexibility,
 
energy
efficiency,
 
and
 
emissions
 
reduction.
 
Already
 
today,
 
Wärtsilä
engines
 
can
 
run
 
on
 
biofuels,
 
methanol
 
and
 
hydrogen
 
blends.
 
For
the
 
energy
 
market,
 
Wärtsilä
 
expects
 
to
 
have
 
an
 
engine
 
and
 
plant
concept
 
for
 
pure
 
hydrogen
 
operation
 
ready
 
by
 
2025.
 
For
 
the
 
marine
market,
 
Wärtsilä
 
has
 
already
 
successfully
 
tested
 
an
 
engine
 
running
with
 
a
 
fuel
 
mix
 
containing
 
70%
 
ammonia.
 
Wärtsilä
 
anticipates
having
 
an
 
engine
 
concept
 
with
 
pure
 
ammonia
 
fuel
 
available
 
in
2023.
wartsila-2021-12-31p1i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
Wärtsilä
 
has
 
done
 
its
 
first
 
preliminary
 
assessment
 
regarding
 
its
economic
 
activities
 
against
 
the
 
EU
 
Sustainable
 
Finance
Taxonomy’s
 
first
 
Delegated
 
Act
 
on
 
Climate,
 
as
 
required
 
by
 
the
Delegated
 
Act
 
on
 
Article
 
8.
 
Based
 
on
 
the
 
preliminary
 
assessment,
Wärtsilä
 
Taxonomy
 
KPIs
 
are
 
as
 
follows
 
for
 
the
 
year
 
2021:
 
KPI
Total
 
,
 
MEUR
Eligible,
 
%
Non-eligible,
 
%
Turnover
4,778
8
92
CapEx
226
22
78
OpEx
176
8
92
Major
 
parts
 
of
 
Wärtsilä’s
 
economic
 
activities
 
are
 
currently
 
not
covered
 
in
 
the
 
first
 
Delegated
 
Act
 
on
 
Climate.
 
Services
 
in
 
Marine
and
 
Energy
 
accounted
 
for
 
52%
 
of
 
Wärtsilä’s
 
net
 
sales
 
in
 
2021.
Services
 
are
 
a
 
key
 
enabler
 
of
 
installation
 
uptime,
 
reliability,
 
reduced
fuel
 
consumption,
 
and
 
lower
 
emissions.
 
Services,
 
however,
 
are
 
not
included
 
in
 
the
 
Taxonomy.
Wärtsilä
 
has
 
a
 
key
 
role
 
to
 
play
 
in
 
decarbonising
 
vessels
 
and
 
the
overall
 
shipping
 
value
 
chain.
 
The
 
company’s
 
extensive
 
product
 
and
solution
 
portfolio,
 
including
 
engines,
 
propulsion
 
systems,
 
hybrid
solutions,
 
integrated
 
powertrain
 
systems,
 
and
 
emission
 
abatement
solutions
 
are
 
key
 
contributors
 
towards
 
zero-emissions
 
shipping.
However,
 
they
 
are
 
all
 
outside
 
the
 
taxonomy
 
scope
 
because
 
only
manufacturing
 
of
 
vessels
 
 
not
 
vessel
 
technologies
 
or
 
components
 
is
 
included.
 
In
 
Energy,
 
engines
 
ready
 
for
 
carbon-neutral
 
fuels,
 
running
 
on
 
natural
 
gas
 
or
 
other
 
fossil
 
fuels,
 
are
 
also
 
excluded.
In
 
total,
 
8%
 
of
 
Wärtsilä’s
 
turnover
 
was
 
estimated
 
to
 
be
 
eligible,
including
 
the
 
energy
 
storage
 
business,
 
biogas
 
solutions,
 
and
 
digital
voyage
 
optimisation
 
solutions.
To
 
be
 
able
 
to
 
report
 
these
 
figures,
 
Wärtsilä
 
has
 
assessed
 
its
economic
 
activities
 
against
 
the
 
economic
 
activities
 
included
 
in
 
the
Delegated
 
Act
 
on
 
Climate.
 
Eligible
 
economic
 
activities
 
have
 
been
identified
 
by
 
comparing
 
the
 
referred
 
NACE
 
codes
 
in
 
the
 
Delegated
Act
 
to
 
Wärtsilä’s
 
economic
 
activities.
 
In
 
addition,
 
the
 
relevant
thresholds
 
for
 
substantial
 
contribution
 
have
 
been
 
assessed
 
in
 
order
to
 
determine
 
the
 
economic
 
activities’
 
eligibility.
 
Revenues,
 
capital
expenditure,
 
and
 
operating
 
expenditure
 
for
 
eligible
 
economic
activities
 
were
 
collected
 
from
 
the
 
accounting
 
system.
 
KPI
Identified
 
eligible
 
economic
 
activities
Notes
Turnover
 
Energy
 
storage
 
business
 
Biogas
 
solutions
D
igital
 
voyage
 
optimisation
 
solutions
Wärtsilä
 
considers
 
its
 
energy
 
storage
 
business
 
as
 
a
 
Taxonomy
 
eligible
economic
 
activity.
 
Wärtsilä
 
energy
 
storage
 
solutions
 
and
 
energy
management
 
systems
 
enable
 
the
 
effective
 
storage
 
of
 
renewable
electricity.
 
Wärtsilä
 
biogas
 
solutions
 
are
 
considered
 
to
 
be
 
eligible
 
through
the
 
“manufacturing
 
of
 
other
 
low
 
carbon
 
technologies”
 
category.
 
Digital
voyage
 
optimisation
 
solutions
 
are
 
considered
 
to
 
be
 
eligible
 
through
 
the
“data
 
driven
 
solutions
 
for
 
GHG
 
reduction”
 
category.
 
Wärtsilä
 
did
 
not
consider
 
any
 
multifuel
 
engine
 
solutions
 
to
 
be
 
eligible
 
at
 
this
 
point.
CapEx
 
New
 
buildings
 
(lease)
 
Passenger
 
cars
 
and
 
light
 
commercial
 
vehicles
 
Capitalised
 
R&D
 
costs
 
related
 
to
 
voyage
optimisation
Any
 
capex
 
for
 
a
 
new
 
building
 
or
 
a
 
new
 
vehicle
 
is
 
eligible.
 
With
 
respect
 
to
the
 
capitalised
 
R&D,
 
eligibility
 
follows
 
the
 
same
 
logic
 
as
 
with
 
the
 
identified
turnover
 
KPI
 
eligible
 
activities.
 
No
 
CapEx
 
related
 
to
 
taxonomy
 
eligible
manufacturing
 
was
 
identified.
OpEx
 
Non-capitalised
 
R&D
 
costs
 
related
 
to
 
future
 
fuels
 
Non-capitalised
 
R&D
 
costs
 
related
 
to
 
data
solutions
With
 
respect
 
to
 
the
 
non-capitalised
 
R&D,
 
eligibility
 
follows
 
the
 
same
 
logic
as
 
with
 
the
 
identified
 
turnover
 
KPI
 
eligible
 
activities.
 
However,
 
OpEx
related
 
to
 
non-capitalised
 
R&D
 
for
 
our
 
engines’
 
capability
 
to
 
run
 
on
 
future
green
 
and
 
zero-carbon
 
fuels
 
was
 
considered
 
eligible
 
because
 
these
 
fuels
enable
 
our
 
customers
 
to
 
generate
 
electricity
 
from
 
renewable
 
non-fossil
gaseous
 
and
 
liquid
 
fuels
 
in
 
the
 
future.
 
No
 
OpEx
 
related
 
to
 
taxonomy
eligible
 
manufacturing
 
was
 
identified.
 
Reporting
 
segments
Wärtsilä
 
Marine
 
Power
Marine
 
Power’s
 
order
 
intake
 
in
 
2021
 
increased
 
by
 
16%
 
to
 
EUR
2,011
 
million
 
(1,737)
 
compared
 
to
 
the
 
previous
 
year.
 
Book-to-bill
was
 
1.08
 
(0.99).
 
Service
 
order
 
intake
 
increased
 
by
 
22%
 
to
 
EUR
1,305
 
million
 
(1,070).
 
Equipment
 
order
 
intake
 
increased
 
by
 
6%
 
to
EUR
 
706
 
million
 
(667).
 
The
 
key
 
segments
 
that
 
contributed
 
to
equipment
 
order
 
intake
 
were
 
merchant
 
at
 
40%,
 
cruise
 
at
 
12%,
 
ferry
at
 
11%,
 
and
 
special
 
vessels
 
at
 
16%.
 
The
 
market
 
conditions
 
and
price
 
competition
 
remained
 
challenging.
 
The
 
order
 
book
 
at
 
the
 
end
of
 
the
 
year
 
increased
 
by
 
8%
 
to
 
EUR
 
1,994
 
million
 
(1,839).
Net
 
sales
 
increased
 
by
 
7%
 
to
 
EUR
 
1,863
 
million
 
(1,748)
 
compared
to
 
the
 
previous
 
year.
 
Service
 
net
 
sales
 
increased
 
by
 
12%
 
to
 
EUR
1,226
 
million
 
(1,096),
 
reflecting
 
the
 
reactivation
 
of
 
cruise
 
vessels
during
 
the
 
second
 
half
 
of
 
the
 
year.
 
Equipment
 
net
 
sales
 
decreased
by
 
2%
 
to
 
EUR
 
637
 
million
 
(652),
 
due
 
to
 
a
 
low
 
order
 
intake
 
in
previous
 
periods.
 
The
 
comparable
 
operating
 
result
 
amounted
 
to
EUR
 
195
 
million
 
(137)
 
or
 
10.5%
 
of
 
net
 
sales
 
(7.8).
 
The
 
result
improvement
 
was
 
primarily
 
driven
 
by
 
a
 
favourable
 
sales
 
mix
between
 
equipment
 
and
 
services,
 
the
 
reactivation
 
of
 
cruise
 
vessels
and
 
increased
 
service
 
volumes
 
during
 
the
 
second
 
half
 
of
 
the
 
year,
and
 
efficiency
 
improvement
 
actions
 
taken.
 
Low
 
factory
 
load
 
and
cost
 
inflation
 
burdened
 
profitability.
 
Items
 
affecting
 
comparability
comprised
 
costs
 
of
 
EUR
 
15
 
million
 
primarily
 
related
 
to
 
the
 
closure
of
 
the
 
joint
 
venture
 
Wärtsilä
 
CME
 
in
 
Zhenjiang,
 
China
 
and
 
footprint
optimisations
 
concerning
 
the
 
new
 
Smart
 
Technology
 
Hub
 
in
 
Vaasa,
Finland.
wartsila-2021-12-31p7i2
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
Divestments
In
 
May,
 
Wärtsilä
 
announced
 
the
 
divestment
 
of
 
Delivery
 
Centre
Santander
 
to
 
Javier
 
Cavada
 
Corporación
 
Cantabria
 
(“JCCC”).
Delivery
 
Centre
 
Santander
 
is
 
a
 
state-of-the-art
 
foundry
 
able
 
to
 
cast
the
 
highest
 
grades
 
of
 
NiAlBronze
 
alloys.
 
The
 
facility
 
located
 
in
Santander,
 
Northern
 
Spain,
 
employs
 
45
 
professionals
 
and
 
has
 
an
annual
 
casting
 
capacity
 
of
 
700
 
tons.
 
As
 
part
 
of
 
the
 
divestment,
Wärtsilä
 
and
 
JCCC
 
signed
 
a
 
strategic
 
supply
 
agreement
 
whereby
JCCC
 
becomes
 
a
 
supplier
 
for
 
bronze
 
alloy
 
castings
 
parts
 
to
Wärtsilä
 
Marine
 
Power.
 
Subject
 
to
 
the
 
fulfilment
 
of
 
closing
conditions,
 
closing
 
of
 
the
 
transaction
 
is
 
expected
 
in
 
the
 
first
 
half
 
of
2022.
Also
 
in
 
May,
 
Wärtsilä
 
and
 
its
 
joint
 
venture
 
partner
 
Zhenjiang
 
CME
Co
 
Ltd
 
(CSSC
 
Marine
 
Power,
 
owned
 
by
 
the
 
CSSC
 
group)
announced
 
the
 
closure
 
of
 
the
 
Wärtsilä
 
CME
 
joint
 
venture
 
in
Zhenjiang,
 
China.
 
Some
 
parts
 
of
 
the
 
production
 
and
 
delivery
activities
 
of
 
the
 
joint
 
venture
 
have
 
been
 
moved
 
to
 
Propulsion
Delivery
 
Centre
 
Wuxi
 
(DCW)
 
in
 
China.
 
Wärtsilä
 
Marine
 
Systems
Marine
 
Systems’
 
order
 
intake
 
in
 
2021
 
increased
 
by
 
55%
 
to
 
EUR
835
 
million
 
(539)
 
compared
 
to
 
the
 
previous
 
year.
 
Book-to-bill
 
was
1.28
 
(0.67).
 
Service
 
order
 
intake
 
increased
 
by
 
14%
 
to
 
EUR
 
235
million
 
(205).
 
Equipment
 
order
 
intake
 
increased
 
by
 
80%
 
to
 
EUR
600
 
million
 
(334).
 
The
 
order
 
book
 
at
 
the
 
end
 
of
 
the
 
year
 
increased
by
 
22%
 
to
 
EUR
 
1,042
 
million
 
(857
),
 
with
 
growth
 
in
 
all
 
business
units
 
with
 
the
 
exception
 
of
 
Exhaust
 
Treatment.
Net
 
sales
 
decreased
 
by
 
19%
 
to
 
EUR
 
654
 
million
 
(808)
 
compared
 
to
the
 
previous
 
year.
 
Service
 
net
 
sales
 
decreased
 
by
 
4%
 
to
 
EUR
 
211
million
 
(219),
 
while
 
equipment
 
net
 
sales
 
decreased
 
by
 
25%
 
to
 
EUR
444
 
million
 
(588).
 
The
 
comparable
 
operating
 
result
 
amounted
 
to
EUR
 
52
 
million
 
(83)
 
or
 
7.9%
 
of
 
net
 
sales
 
(10.3),
 
as
 
a
 
consequence
of
 
decreased
 
scrubber
 
volumes
 
and
 
lower
 
newbuild
 
scrubber
margins.
 
Items
 
affecting
 
comparability
 
comprised
 
costs
 
of
 
EUR
 
4
million
 
related
 
to
 
footprint
 
adjustments
 
and
 
organisational
optimisation.
Wärtsilä
 
Voyage
Voyage’s
 
order
 
intake
 
in
 
2021
 
increased
 
by
 
12%
 
to
 
EUR
 
292
million
 
(262)
 
compared
 
to
 
the
 
previous
 
year.
 
Book-to-bill
 
was
 
1.05
(1.06).
 
Service
 
order
 
intake
 
increased
 
by
 
19%
 
to
 
EUR
 
109
 
million
(92),
 
while
 
equipment
 
order
 
intake
 
increased
 
by
 
8%
 
to
 
EUR
 
183
million
 
(170).
 
Most
 
of
 
the
 
pressure
 
on
 
orders
 
seen
 
in
 
2020
 
due
 
to
Covid-19
 
progressively
 
dissipated
 
throughout
 
the
 
year,
 
as
 
the
industry
 
adapted
 
to
 
the
 
pandemic
 
and
 
customers
 
got
 
closer
 
to
 
a
pre-pandemic
 
business
 
activity
 
level.
 
The
 
order
 
book
 
at
 
the
 
end
 
of
the
 
year
 
increased
 
by
 
5%
 
to
 
EUR
 
288
 
million
 
(275).
Net
 
sales
 
increased
 
by
 
13%
 
to
 
EUR
 
279
 
million
 
(248)
 
compared
 
to
the
 
previous
 
year.
 
The
 
increase
 
was
 
primarily
 
a
 
result
 
of
 
customer
activity
 
strengthening
 
towards
 
pre-pandemic
 
levels,
 
which
 
allowed
for
 
the
 
resumption
 
of
 
transactional
 
service
 
business
 
and
 
newbuild
activity.
 
Service
 
net
 
sales
 
increased
 
by
 
25%
 
to
 
EUR
 
105
 
million
(85),
 
while
 
equipment
 
net
 
sales
 
increased
 
by
 
6%
 
to
 
EUR
 
174
million
 
(163).
 
The
 
comparable
 
operating
 
result
 
amounted
 
to
 
EUR
 
-28
 
million
 
(-41)
 
or
 
-9.9%
 
of
 
net
 
sales
 
(-16.5).
 
The
 
result
 
was
positively
 
impacted
 
by
 
higher
 
sales
 
volumes,
 
a
 
more
 
favourable
sales
 
mix
 
between
 
equipment
 
and
 
services,
 
and
 
efficiency
improvement
 
actions
 
taken.
 
At
 
the
 
same
 
time,
 
investments
 
in
 
digital
competences
 
and
 
Covid-19
 
related
 
challenges
 
in
 
the
 
global
utilisation
 
of
 
personnel
 
burdened
 
the
 
operating
 
result.
 
Items
affecting
 
comparability
 
comprised
 
costs
 
of
 
EUR
 
12
 
million
 
related
to
 
efficiency
 
improvement
 
programmes.
Wärtsilä
 
Energy
 
Energy’s
 
order
 
intake
 
in
 
2021
 
increased
 
by
 
48%
 
to
 
EUR
 
2,444
million
 
(1,653)
 
compared
 
to
 
the
 
previous
 
year.
 
Book-to-bill
 
was
1.31
 
(1.02).
 
Service
 
order
 
intake
 
increased
 
by
 
9%
 
to
 
EUR
 
916
million
 
(840),
 
while
 
equipment
 
order
 
intake
 
increased
 
by
 
88%
 
to
EUR
 
1,529
 
million
 
(813).
 
Demand
 
for
 
equipment
 
was
 
highest
 
in
 
the
Americas.
 
Wärtsilä
 
was
 
awarded
 
important
 
thermal
 
power
 
plant
project
 
contracts
 
in
 
the
 
USA,
 
Mexico,
 
and
 
Brazil.
 
Activity
 
in
 
the
storage
 
market
 
was
 
strong
 
with
 
orders
 
of
 
over
 
3,000
 
MWh
received.
 
The
 
order
 
book
 
at
 
the
 
end
 
of
 
the
 
year
 
increased
 
by
 
31%
to
 
EUR
 
2,393
 
million
 
(1,830).
Net
 
sales
 
increased
 
by
 
15%
 
to
 
EUR
 
1,861
 
million
 
(1,620)
compared
 
to
 
the
 
previous
 
year.
 
Service
 
net
 
sales
 
increased
 
by
14%
 
to
 
EUR
 
891
 
million
 
(782),
 
while
 
equipment
 
net
 
sales
 
increased
by
 
16%
 
to
 
EUR
 
970
 
million
 
(838).
 
The
 
comparable
 
operating
 
result
amounted
 
to
 
EUR
 
136
 
million
 
(101)
 
or
 
7.3%
 
of
 
net
 
sales
 
(6.3).
Good
 
development
 
in
 
sales
 
volumes
 
and
 
improved
 
service
 
capacity
utilisation
 
contributed
 
to
 
a
 
positive
 
margin
 
development.
 
Profitability
was
 
burdened
 
by
 
approximately
 
EUR
 
20
 
million
 
in
 
net
 
provisions
arising
 
from
 
a
 
detailed
 
project
 
risk
 
review
 
in
 
the
 
first
 
quarter,
 
under-
absorption
 
of
 
factory
 
capacity
 
costs,
 
and
 
cost
 
inflation.
Other
 
business
 
activities
Wärtsilä
 
Portfolio
 
Business
Portfolio
 
Business’
 
order
 
intake
 
in
 
2021
 
decreased
 
by
 
9%
 
to
 
EUR
153
 
million
 
(168)
 
compared
 
to
 
the
 
previous
 
year,
 
with
 
growth
 
in
 
the
American
 
Hydro
 
business
 
unit,
 
but
 
a
 
negative
 
impact
 
resulting
 
from
the
 
divestments
 
of
 
certain
 
business
 
units
 
completed
 
in
 
2021.
 
The
order
 
book
 
at
 
the
 
end
 
of
 
the
 
year
 
decreased
 
by
 
45%
 
to
 
EUR
 
142
million
 
(257),
 
mainly
 
due
 
to
 
the
 
exclusion
 
of
 
the
 
divested
 
business
units’
 
order
 
books.
Net
 
sales
 
decreased
 
by
 
33%
 
to
 
EUR
 
121
 
million
 
(181)
 
compared
 
to
the
 
previous
 
year,
 
due
 
to
 
the
 
divestments
 
of
 
certain
 
business
 
units
completed
 
in
 
2021.
The
 
comparable
 
operating
 
result
 
amounted
 
to
EUR
 
2
 
million
 
(-6)
 
or
 
1.6%
 
of
 
net
 
sales
 
(-3.1),
 
primarily
 
thanks
 
to
improved
 
profitability
 
in
 
the
 
Water
 
&
 
Waste
 
business
 
unit.
 
Items
affecting
 
comparability
 
amounting
 
to
 
EUR
 
11
 
million
 
were
recognised
 
as
 
a
 
result
 
of
 
divestments.
Divestments
In
 
January,
 
Wärtsilä
 
announced
 
the
 
divestment
 
of
 
100%
 
of
 
its
shares
 
in
 
the
 
Entertainment
 
business,
 
Wärtsilä
 
Funa
 
GmbH,
 
to
Videlio
 
SA,
 
a
 
French
 
public
 
limited
 
company.
 
The
 
former
 
Wärtsilä
business
 
is
 
engaged
 
in
 
the
 
design,
 
fabrication,
 
engineering,
 
and
integration
 
of
 
entertainment
 
systems,
 
illumination,
 
light
 
control,
cabin
 
control,
 
and
 
broadcast
 
and
 
digital
 
audio
 
distribution
 
and
announcement
 
systems
 
for
 
cruise
 
vessels
 
and
 
entertainment
parks.
 
The
 
company
 
became
 
part
 
of
 
Wärtsilä
 
as
 
a
 
result
 
of
 
the
acquisition
 
of
 
L-3
 
Communications
 
MSI
 
in
 
2015
 
and
 
has
 
172
employees
 
in
 
five
 
countries,
 
with
 
the
 
majority
 
being
 
based
 
in
Emden,
 
Germany.
 
Its
 
annual
 
revenues
 
were
 
approximately
 
EUR
 
50
million
 
in
 
2020.
 
The
 
transaction
 
was
 
completed
 
in
 
April.
 
In
 
March,
 
Wärtsilä
 
announced
 
the
 
divestment
 
of
 
100%
 
of
 
its
 
shares
in Wärtsilä Euroatlas
 
GmbH to Mimir,
 
a
 
global
 
investment
 
firm
based
 
in
 
Sweden.
 
The
 
former
 
Wärtsilä
 
business
 
provides
 
its
 
global
customer
 
base
 
with
 
tailormade
 
solutions
 
for
 
high-performance
power
 
conversion
 
in
 
naval,
 
aviation,
 
and
 
mobile
 
land-based
applications
 
requiring
 
the
 
highest
 
reliability
 
and
 
power
 
density,
 
and
leading-edge
 
energy
 
efficiency
 
under
 
harsh
 
environmental
conditions.
 
The
 
company
 
became
 
part
 
of Wärtsilä as
 
a
 
result
 
of
 
the
acquisition
 
of
 
L-3
 
Communications
 
MSI
 
in
 
2015
 
and has
 
79
wartsila-2021-12-31p7i2
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
employees
 
based in
 
Bremen,
 
Germany.
 
The
 
transaction
 
was
completed
 
in
 
July.
In
 
September,
 
Wärtsilä
 
announced
 
the
 
divestment
 
of
 
its
 
Tank
Control
 
Systems
 
business
 
to
 
Svanehøj,
 
a
 
Danish
 
gas
 
pump
specialist
 
involved
 
in
 
the
 
design
 
and
 
manufacture
 
of
 
specialised
deep
 
well
 
pump
 
solutions.
 
Wärtsilä
 
Tank
 
Control
 
Systems
 
designs,
manufactures,
 
sells,
 
and
 
services
 
high-end
 
measurement
 
systems
for
 
gas
 
tanks
 
on
 
LNG
 
ships,
 
offshore
 
storage,
 
and
 
land-based
 
LNG
terminals.
 
Tank
 
Control
 
Systems
 
is
 
also
 
a
 
leading
 
supplier
 
of
 
safety
products
 
and
 
associated
 
systems
 
and
 
solutions
 
for
 
LPG
 
land-
based
 
storage
 
and
 
underground
 
cavern
 
storage.
 
The
 
business
became
 
part
 
of
 
Wärtsilä
 
as
 
a
 
result
 
of
 
the
 
acquisition
 
of
 
Total
Automation
 
in
 
2006
 
and
 
has
 
approximately
 
50
 
employees
 
based
 
in
the
 
UK,
 
France
 
and
 
Singapore
 
with
 
revenues
 
of
 
EUR
 
7.5
 
million
 
in
2020.
 
The
 
transaction
 
was
 
completed
 
in
 
January
 
2022.
Risks
 
and
 
business
 
uncertainties
New
 
variants
 
of
 
Covid-19
 
and
 
the
 
measures
 
taken
 
to
 
contain
 
its
spread
 
represent
 
the
 
main
 
short-
 
and
 
mid-term
 
risk
 
to
 
the
 
demand
for
 
equipment
 
and
 
services,
 
as
 
they
 
impact
 
global
 
energy
consumption,
 
seaborne
 
trade,
 
as
 
well
 
as
 
consumer
 
confidence
 
in
cruise
 
and
 
ferry
 
transportation.
 
Mobility
 
restrictions
 
continue
 
to
affect
 
business
 
operations,
 
project
 
delivery
 
schedules,
 
and
 
the
ability
 
to
 
perform
 
services.
 
Disruptions
 
to
 
global
 
supply
 
chains
 
and
Covid-19
 
related
 
quarantines
 
and
 
personnel
 
sick
 
leave
 
may
 
impact
factory
 
activities
 
and
 
the
 
delivery
 
of
 
spare
 
parts,
 
while
 
generating
risks
 
in
 
terms
 
of
 
raw
 
material
 
and
 
component
 
prices
 
and
availability,
 
as
 
well
 
as
 
transportation
 
costs.
 
Whilst
 
the
 
roll-out
 
of
vaccines
 
is
 
proceeding
 
well
 
overall,
 
there
 
is
 
still
 
uncertainty
 
over
the
 
duration
 
of
 
the
 
pandemic,
 
the
 
effectiveness
 
of
 
the
 
vaccines
 
on
new
 
variants
 
of
 
Covid-19,
 
and
 
how
 
quickly
 
country
 
level
 
vaccination
programmes
 
are
 
implemented
 
on
 
a
 
global
 
scale,
 
especially
 
in
developing
 
countries.
 
The
 
shipping
 
and
 
shipbuilding
 
markets
 
are
 
faced
 
with
 
increasing
regulatory,
 
financial,
 
and
 
end-customer
 
pressure
 
to
 
decarbonise
their
 
operations.
 
Uncertainties
 
around
 
the
 
development
 
and
deployment
 
of
 
suitable
 
future
 
technologies
 
may
 
affect
 
the
investment
 
appetite
 
of
 
ship
 
owners
 
and
 
operators,
 
concerning
 
both
newbuilding
 
programmes
 
and
 
the
 
management
 
of
 
existing
 
fleets.
 
At
the
 
same
 
time,
 
the
 
limited
 
development
 
of
 
alternative
 
fuel
infrastructures,
 
the
 
substantial
 
price
 
gap
 
between
 
conventional
 
and
alternative
 
fuels,
 
and
 
uncertainties
 
concerning
 
the
 
regulatory
environment
 
and
 
the
 
uptake
 
of
 
new
 
technology
 
may
 
raise
 
barriers
for
 
the
 
green
 
transition.
The
 
travel
 
bans
 
still
 
in
 
force,
 
the
 
limited
 
ability
 
or
 
desire
 
of
 
people
 
to
travel,
 
and
 
a
 
new
 
escalation
 
of
 
Covid-19
 
cases
 
pose
 
risks
 
to
 
the
recovery
 
of
 
the
 
cruise
 
and
 
ferry
 
markets.
 
In
 
the
 
offshore
 
oil
 
and
 
gas
industry,
 
the
 
uncertainty
 
around
 
future
 
demand
 
for
 
crude
 
oil
 
and
 
oil
price
 
volatility
 
are
 
pushing
 
oil
 
majors
 
to
 
re-evaluate
 
their
 
spending
on
 
exploration
 
activities
 
and
 
operational
 
costs,
 
which
 
might
 
lead
 
to
an
 
increasing
 
number
 
of
 
laid-up
 
drilling
 
units
 
and
 
support
 
vessels.
The
 
volatility
 
of
 
oil
 
prices
 
also
 
affects
 
the
 
price
 
spread
 
between
high-
 
and
 
low-sulphur
 
fuels.
 
A
 
narrower
 
price
 
differential,
 
or
 
weaker
future
 
availability
 
of
 
high-sulphur
 
fuel,
 
might
 
weaken
 
the
 
case
 
for
scrubber
 
investments.
 
The
 
prevailing
 
market
 
conditions
 
may
 
result
in
 
continued
 
price
 
pressure.
In
 
the
 
energy
 
markets,
 
despite
 
economic
 
activity
 
growing
 
globally,
the
 
prevailing
 
Covid-19
 
pandemic,
 
currency
 
fluctuations,
 
and
potential
 
financing
 
constraints
 
are
 
likely
 
to
 
postpone
 
investment
decisions
 
on
 
new
 
power
 
generation
 
capacity.
 
Many
 
countries
 
are
still
 
struggling
 
with
 
the
 
pandemic,
 
which
 
limits
 
their
 
ability
 
to
implement
 
new
 
infrastructure
 
projects.
 
Similarly,
 
the
 
energy
transition
 
may
 
temporarily
 
be
 
slowed,
 
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
 
and
implementation
 
timelines.
 
However,
 
once
 
stimulus
 
measures
 
are
executed,
 
the
 
need
 
for
 
flexibility
 
in
 
power
 
systems
 
will
 
be
emphasised.
 
Changes
 
in
 
climate
 
policies
 
and
 
regulations
 
cause
uncertainty
 
in
 
the
 
markets,
 
as
 
they
 
may
 
impact
 
technology
 
choices
for
 
customers.
 
Geopolitical
 
tensions
 
and
 
trade
 
barrier
 
implications
are
 
also
 
notable
 
challenges
 
to
 
the
 
demand
 
environment.
 
Price
pressure
 
resulting
 
from
 
the
 
prevailing
 
competitive
 
environment
remains
 
a
 
risk.
 
Gas
 
price
 
volatility
 
and
 
increasing
 
prices
 
may
impact
 
the
 
competitiveness
 
of
 
thermal
 
baseload
 
gas
 
plants,
 
but
 
are
not
 
expected
 
to
 
have
 
a
 
major
 
impact
 
on
 
thermal
 
balancing
 
power.
In
 
addition,
 
there
 
are
 
risks
 
related
 
to
 
the
 
efficient
 
and
 
fast
 
scaling
up
 
of
 
the
 
energy
 
storage
 
business
 
and
 
resources
 
to
 
meet
 
the
increasing
 
market
 
demand.
The
 
volatility
 
of
 
the
 
geopolitical
 
environment,
 
and
 
the
 
potential
enforcement
 
of
 
sanctions
 
or
 
embargos,
 
pose
 
a
 
potential
 
risk
 
to
 
the
customer
 
relations
 
and
 
international
 
business
 
activities
 
of
 
the
company.
 
With
 
the
 
rapidly
 
growing
 
use
 
of
 
data
 
in
 
shipping
 
and
shipbuilding,
 
as
 
well
 
as
 
in
 
the
 
energy
 
markets,
 
cyber
 
threats
 
can
potentially
 
result
 
in
 
various
 
forms
 
of
 
financial,
 
operational,
 
or
reputational
 
damage
 
to
 
the
 
business.
 
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.
wartsila-2021-12-31p7i2
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
Shares
 
and
 
shareholders
In
 
2021,
 
the
 
number
 
of
 
shares
 
traded
 
on
 
Nasdaq
 
Helsinki
 
was
433,886,295,
 
equivalent
 
to
 
a
 
turnover
 
of
 
EUR
 
4,561
 
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
 
32,692,101
 
shares.
Flagging
 
notifications
Wärtsilä
 
was
 
not
 
informed
 
of
 
any
 
changes
 
in
 
ownership
 
during
2021.
Decisions
 
taken
 
by
 
the
 
Annual
 
General
 
Meeting
Wärtsilä’s
 
Annual
 
General
 
Meeting,
 
held
 
on
 
4
 
March
 
2021,
approved
 
the
 
financial
 
statements,
 
reviewed
 
the
 
Remuneration
Policy
 
and
 
Remuneration
 
Report
 
2020
 
for
 
Governing
 
Bodies,
 
and
discharged
 
the
 
members
 
of
 
the
 
Board
 
of
 
Directors
 
and
 
the
company’s
 
President
 
&
 
CEO
 
from
 
liability
 
for
 
the
 
financial
 
year
2020.
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
 
Tiina
 
Tuomela
 
.
The
 
audit
 
firm
 
PricewaterhouseCoopers
 
Oy
 
was
 
elected
 
as
 
the
company’s
 
auditor
 
for
 
the
 
year
 
2021.
Dividend
 
distribution
The
 
Annual
 
General
 
Meeting
 
approved
 
the
 
Board
 
of
 
Directors’
proposal
 
to
 
pay
 
a
 
dividend
 
of
 
EUR
 
0.20
 
per
 
share
 
in
 
two
instalments.
 
The
 
first
 
instalment
 
of
 
EUR
 
0.10
 
per
 
share
 
was
 
paid
on
 
15
 
March
 
2021
 
and
 
the
 
second
 
instalment
 
of
 
EUR
 
0.10
 
per
share
 
on
 
20
 
September
 
2021.
Authorisation
 
to
 
repurchase
 
the
 
company’s
 
own
 
shares
The
 
Board
 
of
 
Directors
 
was
 
authorised
 
to
 
resolve
 
to
 
repurchase
 
a
maximum
 
of
 
57,000,000
 
shares
 
in
 
the
 
Company.
 
Shares
 
may
 
be
repurchased
 
also
 
otherwise
 
than
 
in
 
proportion
 
to
 
the
 
shareholders’
holding
 
in
 
the
 
Company.
 
The
 
authorisation
 
to
 
repurchase
 
the
Company’s
 
own
 
shares
 
shall
 
be
 
valid
 
until
 
the
 
close
 
of
 
the
 
next
Annual
 
General
 
Meeting,
 
however
 
no
 
longer
 
than
 
for
 
18
 
months
from
 
the
 
decision
 
by
 
the
 
Annual
 
General
 
Meeting.
Authorisation
 
to
 
issue
 
shares
The
 
Board
 
of
 
Directors
 
was
 
authorised
 
to
 
resolve
 
to
 
issue
 
a
maximum
 
of
 
57,000,000
 
shares
 
in
 
the
 
Company.
 
The
 
shares
 
can
be
 
issued
 
for
 
consideration
 
or
 
without
 
consideration.
 
They
 
can
 
also
be
 
issued
 
in
 
deviation
 
from
 
the
 
shareholders’
 
pre-emptive
 
rights
 
by
way
 
of
 
a
 
directed
 
issue
 
if
 
there
 
is
 
a
 
weighty
 
financial
 
reason
 
for
 
the
Company
 
to
 
do
 
so.
 
A
 
directed
 
issue
 
may
 
be
 
decided
 
upon
 
to
develop
 
the
 
capital
 
structure
 
of
 
the
 
Company
 
or
 
to
 
finance
 
or
 
carry
out
 
acquisitions
 
or
 
other
 
arrangements.
 
Additionally,
 
the
authorisation
 
can
 
also
 
be
 
used
 
as
 
part
 
of
 
the
 
Company’s
 
incentive
schemes
 
for
 
up
 
to
 
10,000,000
 
shares,
 
which
 
represents
 
1.69%
 
of
all
 
the
 
shares
 
in
 
the
 
Company.
 
The
 
authorisation
 
for
 
the
 
Board
 
of
Directors
 
to
 
issue
 
shares
 
shall
 
be
 
valid
 
for
 
18
 
months
 
from
 
the
decision
 
by
 
the
 
Annual
 
General
 
Meeting.
 
However,
 
the
authorisation
 
regarding
 
incentive
 
schemes
 
shall
 
be
 
valid
 
for
 
five
years
 
from
 
the
 
decision.
 
This
 
authorisation
 
revokes
 
the
authorisation
 
given
 
by
 
the
 
Annual
 
General
 
Meeting
 
on
 
5
 
March
2020
 
to
 
issue
 
shares.
Organisation
 
of
 
the
 
Board
 
of
 
Directors
Convening
 
after
 
the
 
Annual
 
General
 
Meeting,
 
the
 
Board
 
of
Directors
 
elected
 
Tom
 
Johnstone
 
as
 
its
 
Chair
 
and
 
Risto
 
Murto
 
as
the
 
Deputy
 
Chair.
 
The
 
Board
 
decided
 
to
 
establish
 
an
 
Audit
Committee
 
and
 
a
 
People
 
Committee.
 
The
 
Board
 
appointed
 
from
among
 
its
 
members
 
the
 
following
 
members
 
to
 
the
 
committees:
Audit
 
Committee:
 
Chair
 
Tiina
 
Tuomela
 
,
 
Maarit
 
Aarni-Sirviö,
 
Risto
Murto
People
 
Committee:
 
Chair
 
Maarit
 
Aarni-Sirviö,
 
Johan
 
Forssell,
 
Tom
Johnstone
WÄRTSILÄ'S
 
PROSPECTS
 
FOR
 
2022
Wärtsilä
 
expects
 
the
 
demand
 
environment
 
in
 
the
 
first
 
quarter
 
to
 
be
better
 
than
 
that
 
of
 
the
 
corresponding
 
period
 
in
 
the
 
previous
 
year.
However,
 
the
 
prevailing
 
market
 
conditions
 
make
 
the
 
outlook
uncertain.
BOARD
 
OF
 
DIRECTORS’
 
DIVIDEND
 
PROPOSAL
The
 
Board
 
of
 
Directors
 
proposes
 
that
 
a
 
dividend
 
of
 
EUR
 
0.24
per
share
 
be
 
paid
 
for
 
the
 
financial
 
year
 
2021.
 
The
 
parent
 
company’s
distributable
 
funds
 
total
 
EUR
 
1,025,711,618.25,
 
which
 
includes
EUR
 
188,242,150.86
 
in
 
net
 
profit
 
for
 
the
 
year.
 
There
 
are
590,023,390
 
shares
 
with
 
dividend
 
rights.
 
The
 
dividend
 
shall
 
be
 
paid
in
 
two
 
instalments.
Wärtsilä
 
shares
 
on
 
Nasdaq
 
Helsinki
31.12.2021
Number
 
of
 
shares
outstanding
Number
 
of
 
treasury
shares
Number
 
of
 
shares
 
and
votes
Number
 
of
 
shares
 
traded
1-12/2021
WRT1V
590,023,390
1,700,000
591,723,390
433,886,295
1.1.-31.12.2021
High
Low
Average*
Close
Share
 
price
 
13.87
7.78
10.51
12.36
*Trade
 
-weighted
 
average
 
price
Market
 
capitalisation
31.12.2021
31.12.2020
MEUR
7,314
4,823
Foreign
 
shareholders
31.12.2021
31.12.2020
%
52.7
50.7
wartsila-2021-12-31p7i2
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
wartsila-2021-12-31p13i0
 
 
 
 
 
 
 
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
0,33
0,35
0,38
0,40
0,43
0,46
0,48
0,48
0,20
0,24
0,00
0,25
0,50
0,75
1,00
12
13
14
15
16
17
18
19
20
21
EUR
Dividend
 
per
 
share
Basic
 
earnings
 
per
 
share
The
 
first
 
instalment
 
of
 
EUR
 
0.12
 
per
 
share
 
shall
 
be
 
paid
 
to
 
the
shareholders
 
who
 
are
 
registered
 
in
 
the
 
list
 
of
 
shareholders
maintained
 
by
 
Euroclear
 
Finland
 
Oy
 
on
 
the
 
dividend
 
record
 
date
 
of
7
 
March
 
2022.
 
The
 
payment
 
day
 
proposed
 
by
 
the
 
Board
 
for
 
this
instalment
 
is
 
14
 
March
 
2022.
The
 
second
 
instalment
 
of
 
EUR
 
0.12
per
 
share
 
shall
 
be
 
paid
 
in
October
 
2022.
 
The
 
second
 
instalment
 
of
 
the
 
dividend
 
shall
 
be
 
paid
to
 
shareholders
 
who
 
are
 
registered
 
in
 
the
 
list
 
of
 
shareholders
maintained
 
by
 
Euroclear
 
Finland
 
Oy
 
on
 
the
 
dividend
 
record
 
day,
which,
 
together
 
with
 
the
 
payment
 
day,
 
shall
 
be
 
decided
 
by
 
the
Board
 
of
 
Directors
 
in
 
its
 
meeting
 
scheduled
 
for
 
27
 
September
 
2022.
The
 
dividend
 
record
 
day
 
for
 
the
 
second
 
instalment
 
as
 
per
 
the
current
 
rules
 
of
 
the
 
Finnish
 
book-entry
 
system
 
would
 
be
 
29
September
 
2022
 
and
 
the
 
dividend
 
payment
 
day
 
6
 
October
 
2022.
Dividend
The
 
free
 
share
 
issue
 
approved
 
by
 
Wärtsilä
 
Corporation’s
 
Annual
 
General
Meeting
 
on
 
8
 
March
 
2018
 
increased
 
the
 
total
 
number
 
of
 
Wärtsilä
 
shares
 
to
591,723,390.
 
Figures
 
for
 
the
 
comparison
 
periods
 
2011-2017
 
have
 
been
adjusted
 
to
 
reflect
 
the
 
increased
 
number
 
of
 
shares.
wartsila-2021-12-31p7i2
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
FIVE
 
YEARS
 
IN
 
FIGURES
Wärtsilä
 
provides
 
certain
 
financial
 
performance
 
measures,
 
which
 
are
 
accounting
 
measures
 
that
 
are
 
not
 
defined
by
 
IFRS.
 
These
 
alternative
 
performance
 
measures,
 
such
 
as
 
comparable
 
operating
 
result,
 
comparable
 
adjusted
EBITA,
 
cash
 
flow
 
from
 
operating
 
activities,
 
and
 
gearing,
 
are
 
followed
 
and
 
used
 
by
 
management
 
to
 
measure
 
the
Group's
 
performance
 
and
 
financial
 
position.
 
In
 
addition,
 
Wärtsilä's
 
targets
 
of
 
financial
 
performance
 
are
 
linked
to,
 
for
 
example,
 
comparable
 
operating
 
result
 
and
 
gearing.
 
Thus,
 
these
 
alternative
 
performance
 
measures
provide
 
useful
 
information
 
to
 
the
 
capital
 
markets.
The
 
alternative
 
performance
 
measures
 
should
 
not
 
be
 
evaluated
 
in
 
isolation
 
from
 
the
 
corresponding
 
IFRS
measures.
 
The
 
alternative
 
performance
 
measure
 
calculation
 
definitions
 
are
 
disclosed
 
in
 
Calculations
 
of
financial
 
ratios.
Restated
MEUR
2021
2020
2019
2018
2017*
Net
 
sales
4,778
4,604
5,170
5,174
4,911
of
 
which
 
outside
 
Finland
%
98.5
97.9
98.5
98.9
97.7
Exports
 
from
 
Finland
1,845
1,702
1,933
2,145
1,953
Personnel
 
on
 
average
17,461
18,307
19,110
18,899
17,866
of
 
which
 
in
 
Finland
3,687
3,706
3,868
3,766
3,521
Order
 
book
5,859
5,057
5,878
6,166
5,100
From
 
the
 
consolidated
 
statement
 
of
 
income
Depreciation,
 
amortisation
 
and
 
impairment
162
174
180
130
134
Share
 
of
 
result
 
of
 
associates
 
and
 
joint
 
ventures
3
3
-9
13
13
Comparable
 
operating
 
result
357
275
457
577
576
as
 
a
 
percentage
 
of
 
net
 
sales
%
7.5
6.0
8.8
11.2
11.7
Operating
 
result
314
234
362
543
538
as
 
a
 
percentage
 
of
 
net
 
sales
%
6.6
5.1
7.0
10.5
11.0
Comparable
 
adjusted
 
EBITA
388
308
498
621
612
as
 
a
 
percentage
 
of
 
net
 
sales
%
8.1
6.7
9.6
12.0
12.5
Financial
 
income
 
and
 
expenses
-18
-43
-47
-40
-47
Profit
 
before
 
taxes
296
191
315
502
491
as
 
a
 
percentage
 
of
 
net
 
sales
%
6.2
4.2
6.1
9.7
10.0
Profit
 
for
 
the
 
financial
 
period
193
133
218
386
375
as
 
a
 
percentage
 
of
 
net
 
sales
%
4.0
2.9
4.2
7.5
7.6
From
 
the
 
consolidated
 
statement
 
of
 
financial
position
Non-current
 
assets
2,539
2,427
2,518
2,369
2,285
Current
 
assets
3,982
3,706
3,797
3,690
3,363
Assets
 
held
 
for
 
sale
2
99
82
-
-
Total
 
equity
 
attributable
 
to
 
equity
 
holders
 
of
 
the
 
parent
company
2,315
2,177
2,396
2,418
2,352
Non-controlling
 
interests
8
11
14
14
24
Interest-bearing
 
debt
973
1,327
1,096
823
619
Non-interest-bearing
 
liabilities
3,227
2,648
2,824
2,804
2,653
Liabilities
 
directly
 
attributable
 
to
 
assets
 
held
 
for
 
sale
0
68
68
-
-
Total
 
equity
 
and
 
liabilities
6,523
6,232
6,398
6,059
5,648
From
 
the
 
consolidated
 
statement
 
of
 
cash
 
flows
Cash
 
flow
 
from
 
operating
 
activities
731
681
232
470
430
Cash
 
flow
 
from
 
investing
 
activities
-128
-55
-95
-240
-235
Cash
 
flow
 
from
 
financing
 
activities
-580
-44
-256
-118
-278
Gross
 
capital
 
expenditure
143
117
122
306
255
as
 
a
 
percentage
 
of
 
net
 
sales
%
3.0
2.5
2.4
5.9
5.2
Research
 
and
 
development
 
expenditure
175
153
164
165
141
as
 
a
 
percentage
 
of
 
net
 
sales
%
3.7
3.3
3.2
3.2
2.9
Dividends
 
paid
142**
118
284
284
272
Financial
 
ratios
Earnings
 
per
 
share
 
(EPS),
 
basic***
EUR
0.33
0.23
0.37
0.65
0.63
Earnings
 
per
 
share
 
(EPS),
 
diluted***
EUR
0.33
-
-
-
-
Dividend
 
per
 
share***
EUR
0.24**
0.20
0.48
0.48
0.46
Dividend
 
per
 
earnings
%
73.2**
88.2
130.8
73.7
70.8
Interest
 
coverage
15.0
7.1
7.7
10.8
11.8
Return
 
on
 
investment
 
(ROI)
%
9.7
7.1
11.5
18.1
18.5
Return
 
on
 
equity
 
(ROE)
%
8.6
5.8
9.0
16.1
16.0
Solvency
 
ratio
%
38.6
38.1
40.8
44.4
46.3
Gearing
0.00
0.18
0.30
0.14
0.10
Equity
 
per
 
share***
EUR
3.92
3.68
4.05
4.09
3.97
Working
 
capital
 
(WCAP)
EUR
-100
257
732
581
563
The
 
financial
 
ratios
 
include
 
assets
 
and
 
liabilities
 
pertaining
 
to
 
assets
 
held
 
for
 
sale.
*
 
Figures
 
in
 
the
 
comparison
 
period
 
2017
 
have
 
been
 
restated
 
due
 
to
 
the
 
adoption
 
of
 
IFRS
 
15.
**
 
Proposal
 
of
 
the
 
Board
 
of
 
Directors.
***
 
Share
 
issue
 
without
 
payment
 
(share
 
split)
 
approved
 
by
 
Wärtsilä
 
Corporation’s
 
Annual
 
General
 
Meeting
 
on
 
8
March
 
2018
 
increased
 
the
 
total
 
number
 
of
 
Wärtsilä
 
shares
 
to
 
591,723,390.
 
Figures
 
in
 
the
 
comparison
 
periods
have
 
been
 
restated
 
accordingly.
wartsila-2021-12-31p7i2
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
 
QUARTERLY
 
FIGURES
MEUR
10–12/2021
7–9/2021
4–6/2021
1–3/2021
10–12/2020
7–9/2020
4–6/2020
1–3/2020
10–12/2019
Order
 
intake
Marine
 
Power*
659
443
463
446
440
410
391
496
656
Marine
 
Systems*
308
191
183
153
133
174
119
113
147
Voyage*
93
53
60
86
55
44
56
107
93
Energy*
1,031
486
433
493
469
319
390
475
585
Portfolio
 
Business*
59
14
14
66
21
34
55
57
74
Total
2,150
1,186
1,154
1,244
1,118
981
1,011
1,247
1,555
Order
 
book
 
at
 
the
 
end
 
of
 
the
 
financial
 
period
Marine
 
Power*
1,994
1,930
1,860
1,882
1,839
1,908
1,913
1,967
2,019
Marine
 
Systems*
1,042
944
912
887
857
872
902
1,051
1,232
Voyage*
288
280
295
305
275
289
305
304
274
Energy*
2,393
2,056
2,035
2,029
1,830
1,865
1,939
2,087
2,014
Portfolio
 
Business*
142
115
135
297
257
331
341
336
338
Total
5,859
5,325
5,238
5,399
5,057
5,265
5,401
5,745
5,878
Net
 
sales
Marine
 
Power*
589
382
466
426
489
382
420
457
603
Marine
 
Systems*
221
142
150
142
167
169
238
234
279
Voyage*
84
68
68
59
68
54
56
69
82
Energy*
670
487
416
288
465
347
457
351
648
Portfolio
 
Business*
32
25
31
33
30
43
48
59
71
Total
1,597
1,103
1,131
946
1,220
995
1,220
1,170
1,684
Share
 
of
 
result
 
of
 
associates
 
and
 
joint
 
ventures
1
1
1
1
1
1
-2
Comparable
 
adjusted
 
EBITA
165
95
79
49
111
69
63
65
213
as
 
a
 
percentage
 
of
 
net
 
sales
10.4
8.6
7.0
5.1
9.1
7.0
5.2
5.6
12.6
Depreciation,
 
amortisation
 
and
 
impairment
-40
-41
-42
-39
-49
-47
-38
-39
-39
Purchase
 
price
 
allocation
 
amortisation
-8
-8
-8
-8
-8
-8
-8
-9
-10
Comparable
 
operating
 
result
158
87
71
41
103
61
55
56
202
as
 
a
 
percentage
 
of
 
net
 
sales
9.9
7.9
6.3
4.3
8.4
6.1
4.5
4.8
12.0
wartsila-2021-12-31p7i2
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
Items
 
affecting
 
comparability,
 
total
-14
-12
-14
-4
-13
-18
-6
-4
-39
Operating
 
result
144
75
58
36
90
43
49
52
164
as
 
a
 
percentage
 
of
 
net
 
sales
9.0
6.8
5.1
3.8
7.4
4.3
4.0
4.5
9.7
Financial
 
income
 
and
 
expenses
-10
-1
-5
-1
-12
-9
-13
-9
-11
Profit
 
before
 
taxes
134
74
53
35
78
34
36
43
153
Income
 
taxes
-49
-25
-18
-11
-23
-9
-12
-14
-51
Profit
 
for
 
the
 
financial
 
period
85
50
35
24
55
25
23
29
102
Earnings
 
per
 
share
 
(EPS),
 
basic,
 
EUR
0.14
0.08
0.06
0.04
0.10
0.04
0.04
0.05
0.17
Earnings
 
per
 
share
 
(EPS),
 
diluted,
 
EUR
0.14
0.08
0.06
-
-
-
-
-
-
Gross
 
capital
 
expenditure
45
35
34
29
38
25
27
27
44
Investments
 
in
 
securities
 
and
 
acquisitions
1
1
1
2
Cash
 
flow
 
from
 
operating
 
activities
370
49
245
67
274
114
252
42
295
Working
 
capital
 
(WCAP)
 
at
 
the
 
end
 
of
 
the
 
financial
 
period
-100
107
73
243
257
431
492
660
732
Personnel
 
at
 
the
 
end
 
of
 
the
 
financial
 
period**
Marine
 
Power*
8,224
8,157
8,131
8,317
8,355
8,412
8,674
8,934
8,820
Marine
 
Systems*
1,894
1,891
1,882
1,864
1,897
1,891
1,846
1,862
1,870
Voyage*
1,725
1,799
1,865
1,925
1,915
1,946
1,917
1,939
1,889
Energy*
4,980
4,975
4,953
4,905
4,888
4,837
4,799
4,819
5,137
Portfolio
 
Business*
482
481
555
732
737
1,097
1,098
1,088
1,080
Total
17,305
17,303
17,386
17,742
17,792
18,183
18,334
18,642
18,795
*
 
The
 
segment
 
related
 
comparison
 
figures
 
for
 
2019
 
and
 
1-3/2020
 
have
 
been
 
restated
 
to
 
reflect
 
the
 
new
 
organisational
 
structure
 
effective
 
as
 
of
 
1
 
July
 
2020.
**
 
Comparison
 
figures
 
have
 
been
 
adjusted
 
to
 
reflect
 
the
 
business
 
unit
 
composition
 
of
 
the
 
Portfolio
 
Business
 
and
 
a
 
change
 
in
 
allocation
 
principles.
 
wartsila-2021-12-31p17i0
 
 
 
 
 
 
 
 
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
 
CALCULATIONS
 
OF
 
FINANCIAL
 
RATIOS
Operating
 
result
Net
 
sales
 
+
 
other
 
operating
 
income
 
 
expenses
 
 
depreciation,
 
amortisation
 
and
 
impairment
 
+/–
 
share
 
of
 
result
of
 
associates
 
and
 
joint
 
ventures
Earnings
 
per
 
share