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doc1p1i0
Financial
 
review
Translated,
 
non-
official
 
version
 
of
 
Wärtsilä
 
Corporation’s
 
Annual
Financial
 
Reports
 
202
3
presented
 
in
 
the
 
ESEF
 
format
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial
 
review
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
 
preferably
 
on
an
 
equipment
 
only
 
basis.
 
The
 
marine
 
offering
 
includes
 
power
 
and
propulsion
 
systems,
 
voyage
 
optimisation
 
solutions,
 
as
 
well
 
as
exhaust
 
treatment
 
applications
 
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
 
to
 
maximise
 
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
 
80
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
includes
 
approximately
 
9,000
 
global
direct
 
material
 
suppliers.
 
Wärtsilä’s
 
personnel
 
is
 
made
 
up
 
of
approximately
 
17,800
 
employees
 
comprising
 
128
 
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
 
2023
Our
 
strategy,
 
the
 
Wärtsilä
 
Way,
 
remains
 
intact.
 
The
 
company’s
value
 
creation
 
potential
 
is
 
based
 
on
 
two
 
strategic
 
themes:
Transform
 
and
 
Perform.
 
Transform
 
refers
 
to
 
attractive
 
growth
opportunities
 
at
 
the
 
centre
 
of
 
the
 
decarbonisation
 
transformation
 
by
leveraging
 
growth
 
in
 
electricity
 
generation,
 
balancing
 
power,
 
green
marine
 
transport
 
and
 
related
 
service
 
businesses.
 
The
 
Perform
theme
 
centres
 
around
 
a
 
clear
 
path
 
for
 
operational
 
improvements
and
 
increased
 
profitability,
 
leveraging
 
market
 
growth
 
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.
Targets
Development
 
in
 
2023
Development
 
in
 
2022
Organic
 
growth
 
in
 
net
 
sales
 
5%
7%
18%
Operating
 
margin
 
12%
6,7%
-0.4%
Gearing
 
below
 
0.50
0,02
0.23
Dividend
 
payment
 
at
 
least
 
50%
 
of
 
earnings
 
per
 
share
 
over
 
the
 
cycle
73.2%*
-234.9%
*Proposal
 
of
 
the
 
Board
 
of
 
Directors
Wärtsilä
 
remains
 
committed
 
to
 
R&D
 
activities.
 
To
 
accelerate
 
the
development
 
of
 
decarbonisation
 
technology,
 
Wärtsilä
 
has
increased
 
its
 
R&D
 
investments
 
from
 
its
 
historical
 
~3%
 
of
 
net
 
sales
to
 
~4%.
In
 
2023,
 
the
 
company
 
continued
 
to
 
respond
 
to
 
the
 
interest
in
 
methanol
 
as
 
a
 
fuel
 
to
 
support
 
decarbonisation
 
by
 
introducing
 
four
new
 
methanol
 
engines
 
to
 
its
 
portfolio,
 
thus
 
setting
 
a
 
new
 
industry
benchmark
 
with
 
the
 
broadest
 
methanol
 
engine
 
portfolio
 
currently
 
on
the
 
market.
 
In
 
addition
 
to
 
the
 
Wärtsilä
 
32
 
methanol
 
engine
launched
 
in
 
2022,
 
Wärtsilä
 
will
 
add
 
the
 
Wärtsilä
 
20,
 
Wärtsilä
 
31,
Wärtsilä
 
46F
 
and
 
Wärtsilä
 
46TS
 
to
 
its
 
portfolio
 
of
 
engines
 
capable
of
 
operating
 
with
 
methanol
 
fuel.
 
In
 
addition,
 
Wärtsilä
 
introduced
 
the
marine
 
sector’s
 
first
 
commercially
 
available
 
4-stroke
 
engine-based
solution
 
for
 
ammonia
 
fuel.
 
The
 
new
 
solution
 
enables
 
a
 
significant
advance
 
in
 
sustainable
 
shipping
 
operations
 
 
during
 
a
 
time
 
in
which
 
ship
 
owners
 
are
 
seeking
 
viable
 
options
 
among
 
green
 
fuels.
The
 
ammonia
 
solution
 
is
 
now
 
commercially
 
available
 
as
 
part
 
of
 
the
Wärtsilä
 
25
 
engine
 
platform,
 
which
 
was
 
launched
 
in
 
September
2022.
 
Viridis
 
Bulk
 
Carriers,
 
the
 
world’s
 
first
 
zero
 
emission
 
shipping
company,
 
is
 
intended
 
to
 
be
 
the
 
first
 
shipowner
 
to
 
benefit
 
from
 
the
new
 
ammonia
 
solution.
While
 
much
 
of
 
the
 
decarbonisation
 
work
 
is
 
still
 
ahead,
 
Wärtsilä
already
 
has
 
solutions
 
and
 
technologies
 
that
 
enable
 
100%
renewable
power
 
systems
 
and
 
fuel
 
flexibility,
 
which
 
support
decarbonisation.
 
Wärtsilä
 
Energy’s
 
support
 
for
 
efforts
 
towards
 
net-
zero
 
carbon
 
emissions
 
in
 
the
 
USA
 
is
 
shown
 
with
 
the
 
signing
 
of
 
a
ten-year
 
Guaranteed
 
Asset
 
Performance
 
agreement,
 
covering
 
a
150
 
MW
 
plant
 
for
 
Omaha
 
Public
 
Power
 
District
 
to
 
provide
 
balancing
power
 
as
 
part
 
of
 
the
 
utility’s
 
Power
 
with
 
Purpose
 
project.
 
The
 
aim
 
of
the
 
utility
 
is
 
to
 
reach
 
net-zero
 
carbon
 
emissions
 
by
 
2050.
 
By
ensuring
 
operational
 
reliability
 
for
 
the
 
plant,
 
the
 
agreement
supports
 
these
 
efforts
 
with
 
fast-starting
 
balancing
 
power
 
to
 
rapidly
compensate
 
for
 
fluctuations
 
in
 
the
 
supply
 
of
 
renewables.
 
Wärtsilä
Marine
 
Power
 
introduced
 
the
 
new
 
ultra-low
 
emissions
 
version
 
of
the
 
already
 
efficient
 
31DF
 
engine,
 
to
 
further
 
advance
 
the
decarbonisation
 
of
 
the
 
marine
 
industry.
 
The
 
improved
 
engine
 
can
reduce
 
methane
 
emissions
 
by
 
41
 
percent
 
more
 
than
 
the
 
standard
W31DF
 
engine,
 
which
 
already
 
had
 
the
 
lowest
 
emission
 
levels
 
on
the
 
market.
 
Wärtsilä
 
Marine
 
Systems
 
is
 
driving
 
the
 
development
 
of
maritime
 
carbon
 
capture
 
by
 
delivering
 
its
 
first
 
CCS-Ready
 
scrubber
system.
 
Four
 
8,200
 
TEU
 
container
 
vessels,
 
being
 
built
 
at
 
an
undisclosed
 
Asian-based
 
yard,
 
will
 
be
 
fitted
 
with
 
Wärtsilä’s
 
CCS-
Ready
 
35MW
 
scrubber
 
systems
 
in
 
an
 
open
 
loop
 
configuration.
 
By
BOARD
 
OF
 
DIRECTORS'
 
REPORT
 
Financial
 
review
installing
 
scrubbers
 
designed
 
with
 
the
 
space
 
and
 
capabilities
needed
 
to
 
have
 
a
 
CCS
 
unit
 
added,
 
Wärtsilä
 
is
 
enabling
 
ship
owners
 
to
 
futureproof
 
their
 
existing
 
assets,
 
while
 
remaining
competitive
 
and
 
compliant.
 
Wärtsilä
 
regards
 
collaboration
 
with
 
industry
 
stakeholders
 
as
 
an
essential
 
element
 
in
 
the
development
 
of
 
technologies
 
needed
 
to
meet
 
changing
 
market
 
requirements.
 
Wärtsilä
 
is
 
committed
 
to
supporting
 
the
 
maritime
 
industry
 
in
 
offering
 
advanced
 
technology
and
 
training
 
solutions
 
for
 
education.
 
Wärtsilä
 
has
 
ambitious
 
climate
 
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.
Among
 
the
 
concrete
 
actions
 
that
 
have
 
already
 
been
 
taken
 
to
minimise
 
Wärtsilä’s
 
environmental
 
footprint,
 
are
 
the
 
decision
 
to
purchase
 
fully
 
green
 
electricity
 
and
 
finding
 
ways
 
to
 
reduce
 
engine
testing
 
time.
 
In
 
addition,
 
while
 
the
 
fuel
 
flexibility
 
of
 
engines
powering
 
the
 
marine
 
and
 
energy
 
sectors
 
is
 
key
 
to
 
enabling
 
the
transformation,
 
Wärtsilä’s
 
products
 
and
 
solutions
 
will
 
meet
 
the
 
most
stringent
 
environmental
 
requirements.
 
The
 
health
 
and
 
safety
 
of
 
personnel
 
is
 
a
 
priority
 
for
 
Wärtsilä,
 
and
zero
 
lost-time
 
injuries
 
continues
 
to
 
be
 
the
 
company’s
global
 
target.
In
 
2023,
 
the
 
corporate
 
total
 
recordable
 
injury
 
frequency
 
rate
 
(TRIF)
was
 
2.62
 
(2.57).
Proactive
 
measures
 
to
 
further
 
strengthen
 
the
safety
 
culture
 
within
 
Wärtsilä
 
continued
 
throughout
 
the
 
year.
 
In
September,
 
Wärtsilä
 
organised
 
its
 
ninth
 
annual
 
Safety
 
Day
 
with
 
the
objective
 
to
increase
 
the
 
awareness
 
of
 
safety
 
risks
 
and
 
their
potential
 
consequences,
 
promote
 
necessary
 
safety
 
measures,
strengthen
 
the
 
safety
 
culture,
 
and
 
celebrate
 
success
 
in
 
safety.
 
In
2023
 
the
 
theme
 
of
 
the
 
day
 
was
 
“mind
 
your
 
posture”,
 
focusing
 
on
workplace
 
ergonomics.
Financial
 
targets
 
and
 
outcome
 
in
 
2023
Wärtsilä
 
introduced
 
its
 
financial
 
targets
 
in
 
2021
 
and
 
reconfirmed
them
 
in
 
2023.
 
The
 
targets
 
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.
 
Wärtsilä’s
 
organic
 
growth
 
target
 
was
 
met
 
in
 
2023.
 
Wärtsilä’s
operating
 
profit
 
amounted
 
to
 
EUR
 
402
 
million,
 
which
 
represents
6.7%
 
of
 
net
 
sales.
 
The
 
gearing
 
resulted
 
to
 
0.02.
 
The
 
Board
 
of
Directors
 
proposed
 
a
 
dividend
 
of
 
EUR
 
0.32
 
per
 
share.
THE
 
YEAR
 
2023
Operating
 
environment
Marine
 
In
 
2023,
 
the
 
world
 
economy
 
faced
 
the
 
continued
 
challenges
 
of
 
high
inflation
 
and
 
lower
 
growth
 
prospects.
 
GDP
 
growth
 
slowed
 
down
 
as
a
 
result
 
of
 
stricter
 
financial
 
policies
 
and
 
weaker
 
confidence
 
among
businesses
 
and
 
consumers.
 
The
 
demand
 
for
 
ship
 
capacity,
however,
 
was
 
supported
 
by
 
an
 
increase
 
in
 
seaborne
 
trade
 
volumes
while
 
being
 
further
 
amplified
 
by
 
the
 
longer
 
shipping
 
distances
resulting
 
from
 
political
 
conflicts
 
and
 
disruptions
 
at
 
key
 
waterways.
The
 
recovery
 
in
 
passenger
 
traffic
 
volumes
 
continued,
 
and
 
the
demand
 
particularly
 
for
 
cruise
 
vacations
 
remained
 
strong.
 
Despite
 
capacity
 
limitations
 
at
 
the
 
main
 
shipyards
 
in
 
South
 
Korea
and
 
China
 
and
 
further
 
increases
 
in
 
newbuild
 
prices,
 
the
 
investment
appetite
 
for
 
new
 
ships
 
remained
 
healthy.
 
Investments
 
were
 
mostly
driven
 
by
 
increasing
 
demand
 
for
 
ship
 
capacity,
 
decarbonisation
 
and
a
 
low
 
orderbook,
 
especially
 
in
 
the
 
bulk
 
carrier
 
and
 
tanker
segments.
 
Investments
 
in
 
new
 
ships
 
increased
 
with
 
1,977
 
contracts
registered
 
in
 
the
 
review
 
period
 
January-December,
 
compared
 
to
the
 
1,538
 
contracts
 
recorded
 
in
 
January-December
 
of
 
2022.
The
 
uptake
 
of
 
alternative
 
fuels
 
remained
 
more
 
limited
 
with
 
450
orders
 
reported
 
in
 
2023,
 
representing
 
23%
 
(30%)
 
of
 
all
 
contracted
vessels
 
and
 
43%
 
(60%)
 
of
 
vessel
 
capacity,
 
mostly
 
because
 
of
 
the
changed
 
mix
 
of
 
contracted
 
vessels.
The
 
continued
 
increase
 
in
 
yard
 
capacity
 
especially
 
in
 
China
 
and
South
 
Korea
 
helps
 
to
 
remove
 
constraints
 
from
 
newbuild
 
ordering
across
 
vessel
 
segments
 
as
 
availability
 
of
 
slots
 
improves
 
and
increases
 
in
 
newbuild
 
prices
 
likely
 
will
 
decelerate.
The
 
shipping
 
industry
 
continued
 
to
 
call
 
for
 
more
 
clarity
 
and
 
action
on
 
how
 
to
 
reduce
 
the
 
industry’s
 
carbon
 
footprint.
 
In
 
response,
 
the
International
 
Maritime
 
Organisation
 
(IMO)
 
in
 
July
 
updated
 
its
strategy
 
on
 
cutting
 
greenhouse
 
gas
 
emissions
 
from
 
ships,
 
with
 
the
more
 
stringent
 
goal
 
of
 
reaching
 
net
 
zero
 
emissions
 
by
 
or
 
around
2050.
 
As
 
a
 
result,
 
stakeholders
 
are
 
more
 
aligned
 
globally
 
on
 
the
requirements
 
and
 
investments
 
needed
 
to
 
decarbonise
 
the
 
industry.
 
In
 
the
 
cruise
 
sector,
 
the
 
market
 
sentiment
 
remained
 
positive
 
due
 
to
the
 
continued
 
solid
 
growth
 
in
 
demand
 
for
 
cruises.
 
However,
 
the
demand
 
for
 
new
 
vessel
 
capacity
 
remained
 
limited
 
as
 
cruise
 
lines
focused
 
on
 
managing
 
the
 
current
 
order
 
book
 
and
 
deleveraging
 
their
business.
 
The
 
demand
 
for
 
service
 
was
 
supported
 
by
 
the
 
continued
growth
 
in
 
active
 
fleet
 
capacity,
 
as
 
well
 
as
 
interest
 
in
 
efficiency
improvements
 
to
 
comply
 
with
 
regulations
 
and
 
to
 
mitigate
 
cost
inflation.
In
 
the
 
ferry
 
sector,
 
despite
 
positive
 
developments,
 
notably
 
in
passenger
 
traffic
 
volumes,
 
newbuild
 
activity
 
remained
 
limited
 
and
was
 
driven
 
by
 
fleet
 
replacement.
 
This
 
resulted
 
from
 
the
 
financial
challenges
 
faced
 
by
 
operators
 
during
 
recent
 
years,
 
and
 
excess
capacity
 
in
 
certain
 
markets.
 
The
 
demand
 
for
 
service
 
was
 
supported
by
 
more
 
vessel
 
capacity
 
being
 
activated
 
to
 
cater
 
for
 
the
 
increased
passenger
 
and
 
cargo
 
traffic
 
volumes.
In
 
the
 
offshore
 
sector,
 
the
 
supportive
 
energy
 
prices
 
continued
 
to
increase
 
demand
 
for
 
drilling
 
unit
 
and
 
support
 
vessel
 
capacity,
resulting
 
in
 
further
 
fleet
 
reactivations
 
and
 
interest
 
in
 
newbuild
 
units.
However,
 
the
 
contracting
 
of
 
more
 
complex
 
and
 
expensive
 
drilling
units
 
remained
 
limited
 
due
 
to
 
high
 
prices,
 
the
 
cost
 
of
 
finance,
 
the
lack
 
of
 
yard
 
capacity,
 
and
 
limited
 
interest
 
in
 
building
 
offshore
assets.
 
The
 
demand
 
for
 
offshore
 
wind
 
vessel
 
capacity
 
was
supported
 
by
 
the
 
continued
 
growth
 
in
 
wind
 
farm
 
capacity.
 
Despite
inflationary
 
pressure,
 
the
 
long-term
 
outlook
 
remains
 
positive
 
with
the
 
final
 
investment
 
decisions
 
(FID)
 
for
 
offshore
 
wind
 
projects
 
for
the
 
full
 
year
 
2023
 
being
 
clearly
 
above
 
last
 
year's
 
levels.
 
The
demand
 
for
 
service
 
across
 
offshore
 
subsegments
 
was
 
driven
 
by
increases
 
in
 
utilisation
 
and
 
day
 
rates
 
throughout
 
the
 
offshore
 
fleet.
In
 
the
 
LNG
 
carrier
 
sector,
 
the
 
demand
 
for
 
newbuild
 
capacity
 
has
continued
 
to
 
be
 
driven
 
by
 
further
 
investments
 
in
 
expanding
 
LNG
liquefaction
 
capacity,
 
despite
 
the
 
demand
 
for
 
carriers
 
easing
 
off
from
 
the
 
record-levels
 
seen
 
in
 
2022.
 
The
 
demand
 
for
 
service
continued
 
to
 
be
 
driven
 
by
 
the
 
existing
 
fleet
 
operating
 
at
 
full
 
pace.
In
 
the
 
containership
 
sector,
 
the
 
contracting
 
of
 
new
 
ships
 
declined
from
 
the
 
previous
 
years’
 
record
 
levels
 
as
 
the
 
demand
 
for
 
ship
capacity
 
was
 
clearly
 
outpaced
 
by
 
the
 
record
 
volumes
 
of
 
new
capacity
 
entering
 
the
 
market.
 
Many
 
owners
 
continued
 
their
 
longer-
term
 
fleet
 
renewal
 
programmes.
 
The
 
demand
 
for
 
service
 
was
 
Financial
 
review
burdened
 
by
 
the
 
weaker
 
market
 
sentiment,
 
offsetting
 
the
 
growth
 
in
active
 
fleet
 
capacity.
Across
 
all
 
the
 
above
 
sectors,
 
the
 
growing
 
pressure
 
to
 
decarbonise
operations
 
supported
 
the
 
demand
 
for
 
both
 
newbuilds
 
and
 
service.
This
 
has
 
resulted
 
in
 
investments
 
in
 
additional
 
fleet
 
capacity,
 
direct
fleet
 
replacements,
 
efficiency
 
upgrades
 
or
 
fuel
 
conversions,
 
and
maintenance
 
activities
 
to
 
keep
 
the
 
existing
 
fleet
 
compliant
 
and
competitive.
Energy
In
 
2023,
 
high
 
inflation
 
and
 
interest
 
rates
 
continued
 
to
 
impact
 
the
global
 
economy.
 
While
 
price
 
volatility,
 
inflation,
 
and
 
interest
 
rates
have
 
moderated,
 
global
 
GDP
 
growth
 
is
 
estimated
 
to
 
remain
restrained.
 
Constraints
 
in
 
global
 
and
 
energy-related
 
supply
 
chains
have
 
eased
 
considerably
 
over
 
the
 
course
 
of
 
the
 
year.
 
The
macroeconomic
 
development
 
caused
 
uncertainty
 
within
 
the
 
overall
investment
 
environment,
 
delaying
 
decision-making
 
especially
 
in
 
the
engine
 
power
 
plants
 
business.
 
On
 
the
 
other
 
hand,
 
easing
 
supply
chain
 
constraints
 
have
 
had
 
a
 
positive
 
effect,
 
notably
 
in
 
battery
energy
 
storage.
Global
 
natural
 
gas
 
prices
 
have
 
decreased
 
from
 
the
 
previous
 
year’s
extreme
 
highs
 
but
 
remain
 
above
 
pre-2021
 
levels.
 
The
 
year
witnessed
 
significant
 
gas
 
price
 
volatility,
 
showcasing
 
the
 
market’s
continued
 
sensitivity
 
to
 
disruptions
 
in
 
supply
 
and
 
demand.
Commodity
 
prices
 
have
 
eased
 
for
 
most
 
materials.
 
Energy
 
and
climate
 
policies
 
around
 
the
 
world
 
continue
 
to
 
evolve
 
towards
decarbonisation
 
targets,
 
and
 
the
 
mid-term
 
energy
 
transition
 
outlook
remains
 
strong.
 
Climate
 
policy
 
reached
 
new
 
milestones
 
in
 
Q4
 
as
more
 
than
 
120
 
countries
 
pledged
 
to
 
triple
 
global
 
renewable
 
energy
capacity
 
by
 
2030.
 
The
 
COP28
 
final
 
declaration
 
also
 
called
 
for
transitioning
 
away
 
from
 
fossil
 
fuels,
 
in
 
line
 
with
 
Wärtsilä’s
 
vision
 
of
 
a
100%
 
renewable
 
energy
 
future
 
and
 
readiness
 
to
 
enable
 
engines
 
to
run
 
on
 
future
 
fuels.
Wärtsilä’s
 
market
 
share
 
during
 
the
 
last
 
twelve
 
months
 
remained
 
at
13%
 
(13%),
 
as
 
global
 
orders
 
for
 
natural
 
gas
 
and
 
liquid-fuelled
power
 
plants
 
decreased
 
by
 
22%
 
to
 
10.0
 
GW
 
during
 
the
 
twelve-
month
 
period
 
ending
 
in
 
June
 
2023
 
(12.9
 
GW
 
at
 
the
 
end
 
of
December
 
2022).
 
Global
 
orders
 
include
 
prime
 
movers
 
over
 
5
 
MW
in
 
size
 
in
 
up
 
to
 
400
 
MW
 
gas
 
turbine
 
plants
 
and
 
engine
 
plants
 
of
 
all
sizes.
 
The
 
gas
 
turbine
 
data
 
is
 
gathered
 
from
 
the
 
McCoy
 
Power
Report
 
and
 
is
 
reported
 
with
 
a
 
one
 
quarter
 
delay
 
due
 
to
 
data
availability.
 
Engine
 
data
 
is
 
collected
 
from
 
press
 
releases
 
and
Wärtsilä
 
sales
 
teams.
 
Power
 
plant
 
market
 
share
 
reporting
 
was
updated
 
in
 
the
 
third
 
quarter
 
to
 
reflect
 
our
 
most
 
relevant
 
markets
more
 
accurately.
 
Previously,
 
market
 
shares
 
included
 
gas
 
turbine
plants
 
up
 
to
 
500
 
MW
 
but
 
did
 
not
 
include
 
non-Wärtsilä
 
engine
plants.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
doc1p5i0
 
 
 
 
 
 
 
 
Financial
 
review
0
1 000
2 000
3 000
4 000
5 000
6 000
7 000
2019
2020
2021
2022
2023
MEUR
-2
0
2
4
6
8
-100
0
100
200
300
400
500
600
700
2019
2020
2021
2022
2023
%
MEUR
Comparable
 
operating
 
result
Operating
 
result
Result
 
before
 
taxes
Operating
 
result,
 
%
Order
 
intake
 
and
 
order
 
book
Wärtsilä’s
 
order
 
intake
 
in
 
2023
 
increased
 
by
 
16%
 
to
 
EUR
 
7
 
070
million
 
(6
 
074)
 
compared
 
to
 
2022.
 
Book-to-bill
 
was
 
1,18
 
(1,04).
Service
 
order
 
intake
 
increased
 
by
 
15%
 
to
 
EUR
 
3
 
519
 
million
(3
 
066),
 
driven
 
by
 
growth
 
in
 
Marine
 
Power
 
and
 
Energy.
 
Equipment
order
 
intake
 
increased
 
by
 
18%
 
to
 
EUR
 
3
 
550
 
million
 
(3
 
008)
 
driven
by
 
growth
 
in
 
Marine
 
Power,
 
Marine
 
Systems
 
and
 
Energy
 
Storage
 
&
Optimisation.
The
 
order
 
book
 
at
 
the
 
end
 
of
 
the
 
year
 
increased
 
by
 
13%
 
to
 
EUR
6
 
694
 
million
 
(5
 
906).
 
Net
 
sales
 
and
 
operating
 
result
Wärtsilä’s
net
 
sales
 
in
 
2023
 
increased
 
by
 
3%
 
to
 
EUR
 
6
 
015
 
million
(5
 
842)
 
compared
 
to
 
2022.
 
Service
 
net
 
sales
 
increased
 
by
 
13%
 
to
EUR
 
3
 
148
 
million
 
(2
 
775),
 
driven
 
especially
 
by
 
growth
 
in
 
Marine
Power.
 
Equipment
 
net
 
sales
 
decreased
 
by
 
7%
 
to
 
EUR
 
2
 
867
 
million
(3
 
067),
 
with
 
growth
 
in
 
Energy
 
Storage
 
&
 
Optimisation
 
and
 
Marine
Power
 
and
 
lower
 
sales
 
in
 
engine
 
power
 
plants
 
and
 
Marine
Systems.
 
Of
 
Wärtsilä’s
 
net
 
sales,
 
approximately
 
57%
 
was
 
EUR
denominated
 
and
 
28%
 
USD
 
denominated,
 
with
 
the
 
remainder
being
 
split
 
between
 
several
 
currencies.
The
 
operating
 
result
 
amounted
 
to
 
EUR
 
402
 
million
 
(-26)
 
or
 
6,7%
 
of
net
 
sales
 
(-0,4).
 
The
 
comparable
 
operating
 
result
 
totalled
 
EUR
 
497
million
 
(325)
 
or
 
8,3%
 
of
 
net
 
sales
 
(5,6).
 
Comparable
 
operating
result
 
growth
 
was
 
supported
 
in
 
particular
 
by
 
an
 
increase
 
in
 
Energy
and
 
Marine
 
Power
 
but
 
was
 
burdened
 
by
 
a
 
decrease
 
in
 
Marine
Systems.
 
Items
 
affecting
 
comparability
 
comprised
 
costs
 
of
 
EUR
 
-95
million
 
(-351)
 
of
 
which
 
the
 
largest
 
item
 
was
 
EUR
 
-45
 
million
 
related
to
 
the
 
impairment
 
of
 
goodwill
 
and
 
other
 
non-current
 
assets
 
in
 
the
Portfolio
 
Business.
 
The
 
comparable
 
adjusted
 
EBITA
 
amounted
 
to
EUR
 
518
 
million
 
(349)
 
or
 
8,6%
 
of
 
net
 
sales
 
(6,0).
 
Purchase
 
price
allocation
 
amortisation
 
amounted
 
to
 
EUR
 
20
 
million
 
(23).
Financial
 
items
 
amounted
 
to
 
EUR
 
-37
 
million
 
(-6).
 
Net
 
interest
totalled
 
EUR
 
-14
 
million
 
(-10).
 
The
 
result
 
before
 
taxes
 
amounted
 
to
EUR
 
364
 
million
 
(-32).
 
Taxes
 
amounted
 
to
 
EUR
 
-95
 
million
 
(-26),
implying
 
an
 
effective
 
tax
 
rate
 
of
 
26,1%
 
(-81,5).
 
The
 
result
 
for
 
the
financial
 
year
 
amounted
 
to
 
EUR
 
269
 
million
 
(-58).
 
Basic
 
earnings
per
 
share
 
totalled
 
EUR
 
0,44
 
(-0,11).
 
The
 
return
 
on
 
investment
(ROI)
 
was
 
13,9%
 
(0,1),
 
while
 
the
 
return
 
on
 
equity
 
(ROE)
 
was
12,3%
 
(-2,6).
Group
 
net
 
sales
 
devel
o
pment
Result
 
Engine
 
megawatts
 
delivered
 
2023
2022
Change
Marine
 
Power
1
 
223
970
26%
Energy
727
1
 
467
-50%
Wärtsilä
 
total
1
 
950
2
 
437
-20%
By
 
joint
 
venture
597
316
89%
Deliveries
 
total
2
 
547
2
 
753
-7%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial
 
review
Financing
 
and
 
cash
 
flow
Wärtsilä’s
 
cash
 
flow
 
from
 
operating
 
activities
 
in
 
2023
 
totalled
 
EUR
822
 
million
 
(-62),
 
the
 
improvement
 
being
 
driven
 
by
 
a
 
better
operating
 
result
 
and
 
a
 
good
 
level
 
of
 
received
 
customer
 
payments.
Working
 
capital
 
totalled
 
EUR
 
-169
 
million
 
at
 
the
 
end
 
of
 
the
 
year
(179).
 
Advances
 
received
 
totalled
 
EUR
 
774
 
million
 
(527).
 
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
 
819
 
million
 
at
 
the
end
 
of
 
the
 
year
 
(461).
 
Unutilised
 
committed
 
credit
 
facilities
 
totalled
EUR
 
644
 
million
 
(650).
Wärtsilä
 
had
 
interest-bearing
 
debt
 
totalling
 
EUR
 
858
 
million
 
at
 
the
end
 
of
 
the
 
year
 
(949).
 
The
 
total
 
amount
 
of
 
short-term
 
debt
 
maturing
within
 
the
 
next
 
12
 
months
 
was
 
EUR
 
119
 
million.
 
Long-term
 
loans
amounted
 
to
 
EUR
 
739
 
million.
Net
 
interest-bearing
 
debt
 
totalled
 
EUR
 
35
 
million
 
(481).
 
Gearing
Maturity
 
profiles
 
of
 
long-term
 
loans
Committed
 
revolving
 
credit
 
facilities
 
(end
 
of
 
period)
was
 
0,02
 
(0,23),
 
while
 
the
 
solvency
 
ratio
 
was
 
37.0%
 
(35.3%).
Equity
 
per
 
share
 
was
 
EUR
 
3,78
 
(3,62).
Loans
Gearing
 
69%
67%
79%
84%
66%
66%
66%
61%
65%
48%
48%
40%
0
300
600
900
1 200
1 500
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
2021
2022
2023
MEUR
%
 
=
 
Fixed
 
portion
 
of
 
loans
 
(incl.
 
derivatives)
Floating
 
rate
 
loans
Fixed
 
rate
 
loans
0,00
0,10
0,20
0,30
0,40
0,50
2019
2020
2021
2022
2023
0
20
40
60
80
100
120
140
160
24
25
26
27
28
29
30
31
32
33
34
35+
MEUR
Annual
 
repayments
 
of
 
long-term
 
loans
0
150
300
450
600
750
2023
2024
2025
2026
2027
2028
2029
MEUR
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
doc1p7i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
doc1p7i1
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial
 
review
0,0
1,0
2,0
3,0
4,0
5,0
0
50
100
150
200
250
300
2019
2020
2021*
2022
2023
%
MEUR
R&D
 
expenditure
Percentage
 
of
 
net
 
sales
0
100
200
300
400
2019
2020
2021
2022
2023
MEUR
Related
 
to
 
acquisitions
Other
 
capital
 
expenditure
Depreciation,
 
amortisation,
 
and
 
impairment
Capital
 
expenditure
Capital
 
expenditure
 
related
 
to
 
intangible
 
assets
 
and
 
property,
 
plant,
and
 
equipment
 
amounted
 
to
 
EUR
 
148
 
million
 
(156)
 
in
 
2023.
 
Capital
expenditure
 
related
 
to
 
acquisitions
 
and
 
investments
 
in
 
securities
totalled
 
EUR
 
1
 
million
 
(5).
 
Depreciation,
 
amortisation,
 
and
impairment
 
amounted
 
to
 
EUR
 
193
 
million
 
(263),
 
including
depreciation
 
of
 
right
 
of
 
use
 
assets
 
of
 
EUR
 
49
 
million
 
(49).
Gross
 
capital
 
expenditure
In
 
2024,
 
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
 
marine
 
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.
 
Research
 
and
 
development
 
expenditure
 
totalled
 
EUR
 
258
 
million
(241)
 
in
 
2023,
 
which
 
represents
 
4.3%
 
of
 
net
 
sales
 
(4.1).
In
 
March,
 
Wärtsilä
 
received
 
its
 
first
 
order
 
for
 
carbon
 
capture
 
and
storage-ready
 
scrubber
 
systems
 
-
 
CCS-Ready
 
scrubbers.
 
Four
8,200
 
TEU
 
container
 
vessels,
 
being
 
built
 
at
 
an
 
undisclosed
 
Asian-
based
 
yard,
 
will
 
be
 
fitted
 
with
 
Wärtsilä’s
 
CCS-Ready
 
35MW
scrubber
 
systems
 
in
 
an
 
open
 
loop
 
configuration.
 
The
 
scrubbers
 
are
termed
 
CCS-Ready
 
because,
 
as
 
part
 
of
 
their
 
installation,
 
Wärtsilä
will
 
perform
 
additional
 
design
 
and
 
engineering
 
work
 
to
 
ensure
 
that
future
 
retrofits
 
for
 
a
 
full
 
CCS
 
system
 
on
 
the
 
vessels
 
have
 
already
been
 
accounted
 
for
 
during
 
the
 
newbuilding
 
construction
 
stage.
 
By
installing
 
scrubbers
 
that
 
have
 
been
 
designed
 
with
 
the
 
space
 
and
capabilities
 
to
 
have
 
a
 
CCS
 
unit
 
added,
 
Wärtsilä
 
enables
 
ship
owners
 
to
 
futureproof
 
their
 
existing
 
assets,
 
while
 
remaining
competitive
 
and
 
compliant.
 
Also
 
in
 
March,
 
Wärtsilä
 
and
 
WEC
 
Energy
 
Group
 
successfully
tested
 
the
 
capabilities
 
of
 
a
 
Wärtsilä
 
engine
 
running
 
on
 
25
 
vol%
hydrogen-blended
 
fuel.
 
The
 
tests
 
were
 
conducted
 
at
 
WEC
 
Energy
Group’s
 
55
 
MW
 
A.J.
 
Mihm
 
power
 
plant
 
in
 
Michigan,
 
USA
 
using
 
an
unmodified
 
Wärtsilä
 
50SG
 
engine.
 
Throughout
 
the
 
testing
 
period,
the
 
Wärtsilä
 
engine
 
continued
 
to
 
supply
 
power
 
to
 
the
 
grid.
 
This
 
is
the
 
largest
 
commercially
 
operated
 
flexible
 
balancing
 
engine
 
ever
 
to
run
 
on
 
a
 
hydrogen
 
fuel
 
blend,
 
representing
 
therefore
 
a
 
world-first
achievement.
In
 
June,
 
Wärtsilä’s
 
new
 
patented
 
and
 
proprietary
 
technology
Wärtsilä
 
Ammonia
 
Release
 
Mitigation
 
Systems
 
(WARMS)
 
received
Approval
 
in
 
Principle
 
from
 
the
 
DNV
 
classification
 
society.
 
The
approval
 
covers
 
the
 
use
 
on
 
ships
 
fuelled
 
by
 
ammonia
 
with
 
the
 
DNV
Class
 
notation
 
gas
 
fuelled
 
ammonia
 
or
 
on
 
gas
 
tankers
 
fuelled
 
by
ammonia
 
with
 
the
 
DNV
 
Class
 
notation
 
GF
 
NH3.
 
This
 
innovative
system
 
mitigates
 
the
 
risks
 
associated
 
with
 
future
 
fuels,
 
such
 
as
ammonia,
 
which
 
can
 
be
 
hazardous
 
to
 
both
 
health
 
and
 
the
environment
 
unless
 
handled
 
and
 
stored
 
with
 
great
 
care.
In
 
August,
 
Wärtsilä
 
announced
 
that
 
it
 
will
 
power
 
the
 
biggest
 
battery
electric
 
ship
 
ever
 
built
 
with
 
its
 
battery
 
electric
 
propulsion
 
system
and
 
waterjets.
 
The
 
vessel
 
is
 
a
 
new
 
ferry
 
being
 
built
 
by
 
Incat
Tasmania
 
and
 
has
 
been
 
ordered
 
by
 
Incat’s
 
long-term
 
South
American
 
customer,
 
Buquebús.
 
With
 
an
 
overall
 
length
 
of
 
130
metres,
 
the
 
ferry
 
will
 
be
 
the
 
largest
 
ever
 
vessel
 
of
 
its
 
type.
 
It
 
will
also
 
be
 
the
 
world’s
 
first
 
zero
 
emissions,
 
lightweight
 
catamaran.
In
 
September
 
Wärtsilä
 
announced
 
that
 
it
 
will
 
supply
 
an
 
integrated
hybrid
 
propulsion
 
system
 
for
 
the
 
world’s
 
first
 
methanol
 
fuelled
hybrid
 
RoRo
 
vessels.
 
The
 
ships
 
are
 
being
 
built
 
at
 
the
 
China
Merchants
 
Jinling
 
shipyard
 
(Weihai)
 
Co.,
 
Ltd
 
for
 
the
 
Swedish
shipping
 
company
 
Stena
 
RoRo
 
and
 
will
 
operate
 
in
 
the
 
Stena
 
Line
Irish
 
Sea
 
system.
 
The
 
combination
 
of
 
new
 
sustainable
 
fuels
 
and
electrification
 
is
 
in
 
line
 
with
 
the
 
company’s
 
sustainable
 
operations
target.
In
 
November
 
Wärtsilä
 
introduced
 
the
 
marine
 
sector’s
 
first
commercially
 
available
 
4-stroke
 
engine-based
 
solution
 
for
 
ammonia
fuel.
 
The
 
new
 
solution
 
enables
 
a
 
significant
 
advance
 
in
 
sustainable
shipping
 
operations
 
 
during
 
a
 
time
 
in
 
which
 
ship
 
owners
 
are
seeking
 
viable
 
options
 
among
 
green
 
fuels.
 
The
 
ammonia
 
solution
 
is
now
 
commercially
 
available
 
as
 
part
 
of
 
the
 
Wärtsilä
 
25
 
engine
platform,
 
which
 
was
 
launched
 
in
 
September
 
2022.
 
Viridis
 
Bulk
Carriers,
 
the
 
world’s
 
first
 
zero
 
emission
 
shipping
 
company,
 
is
intended
 
to
 
be
 
the
 
first
 
shipowner
 
to
 
benefit
 
from
 
the
 
new
 
ammonia
solution.
Research
 
and
 
development
 
expenditure
 
*
 
Figure
 
in
 
the
 
comparison
 
period
 
2021
 
has
 
been
 
restated
 
to
 
reflect
 
a
 
change
in
 
the
 
definition
 
of
 
research
 
and
 
development
 
expenditure.
 
Strategic
 
projects
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
doc1p8i0
 
 
 
 
 
 
 
 
 
 
 
Financial
 
review
0
5 000
10 000
15 000
20 000
2019
2020
2021
2022
2023
Personnel
 
at
 
the
 
end
 
of
 
the
 
financial
 
period
Personnel
 
on
 
average
Personnel
 
in
 
Finland
Wärtsilä
 
actively
 
manages
 
its
 
business
 
portfolio
 
to
 
support
 
the
strategy
 
and
 
financial
 
targets.
 
In
 
January,
 
the
 
integration
 
of
 
the
 
Voyage
 
business
 
with
 
Marine
Power
 
became
 
effective.
 
The
 
offering
 
was
 
streamlined
 
to
 
focus
 
on
fleet
 
and
 
port
 
optimisation
 
and
 
related
 
simulation
 
and
 
training
services.
 
The
 
other
 
parts
 
of
 
Voyage,
 
namely
 
NACOS
 
Navigation,
NACOS
 
Automation,
 
Dynamic
 
Positioning
 
and
 
sensors
 
were
merged
 
into
 
a
 
new
 
business
 
unit
 
and
 
moved
 
to
 
Wärtsilä
 
Portfolio
Business.
 
Additionally,
 
the
 
Marine
 
Electrical
 
Systems
 
business
 
unit
was
 
moved
 
from
 
Marine
 
Systems
 
to
 
Portfolio
 
Business
 
due
 
to
 
its
limited
 
strategic
 
fit
 
with
 
the
 
rest
 
of
 
the
 
group.
 
The
 
Portfolio
 
Business
consists
 
of
 
business
 
units
 
which
 
are
 
run
 
independently,
 
the
 
aim
being
 
to
 
accelerate
 
performance
 
improvement
 
and
 
unlock
 
value
through
 
divestments
 
or
 
other
 
strategic
 
alternatives.
 
With
 
this
offering,
 
Wärtsilä
 
further
 
optimises
 
marine
 
operations
 
for
 
lower
costs
 
and
 
reduced
 
emissions.
 
Customers
 
benefit
 
from
 
Wärtsilä’s
unique
 
set
 
of
 
capabilities,
 
combining
 
the
 
optimisation
 
of
 
vessel
operations
 
with
 
ports
 
traffic
 
management
 
and
 
performance-based
services
 
for
 
port-to-port
 
operations.
 
In
 
October,
 
Wärtsilä
 
announced
 
the
 
commencement
 
of
 
a
 
strategic
review
 
of
 
the
 
Energy
 
Storage
 
and
 
Optimisation
 
business.
 
The
strategic
 
review
 
aims
 
to
 
assess
 
options
 
to
 
accelerate
 
the
 
profitable
growth
 
of
 
the
 
ES&O
 
business
 
in
 
a
 
way
 
that
 
benefits
 
its
 
customers,
employees,
 
and
 
the
 
value
 
creation
 
for
 
Wärtsilä
 
shareholders.
Wärtsilä
 
has
 
not
 
set
 
a
 
timetable
 
for
 
the
 
completion
 
of
 
the
 
strategic
review.
 
In
 
November,
 
Wärtsilä
 
announced
 
a
 
plan
 
to
 
simplify
 
its
 
organisation
and
 
reporting
 
structure,
 
by
 
discontinuing
 
Marine
 
Systems
 
as
 
a
reporting
 
segment.
 
The
 
Gas
 
Solutions
 
business
 
unit
 
would
 
be
moved
 
to
 
Portfolio
 
Business
 
in
 
preparation
 
for
 
a
 
divestment.
 
In
connection
 
with
 
this,
 
the
 
Exhaust
 
Treatment
 
and
 
Shaft
 
Line
Solutions
 
business
 
units
 
would
 
be
 
moved
 
from
 
Wärtsilä
 
Marine
Systems
 
to
 
Wärtsilä
 
Marine
 
Power
 
as
 
of
 
January
 
1,
 
2024,
 
to
simplify
 
the
 
organisational
 
structure.
 
Consequently,
 
Wärtsilä
 
Marine
Systems
 
would
 
no
 
longer
 
constitute
 
an
 
organisational
 
unit
 
nor
 
a
reporting
 
segment.
Personnel
Wärtsilä
 
had
 
17,807
 
(17,581)
 
employees
 
at
 
the
 
end
 
of
 
the
 
year.
 
On
average,
 
the
 
number
 
of
 
personnel
 
totalled
 
17
 
666
 
(17
 
482)
 
in
 
the
year
 
2023.
 
Of
 
Wärtsilä’s
 
total
 
number
 
of
 
employees,
 
23%
 
(22)
 
were
 
located
 
in
Finland
 
and
 
37%
 
(37)
 
elsewhere
 
in
 
Europe.
 
Personnel
 
employed
 
in
Asia
 
represented
 
22%
 
(22)
 
of
 
the
 
total,
 
personnel
 
in
 
the
 
Americas
13%
 
(14),
 
and
 
personnel
 
in
 
other
 
countries
 
5%
 
(5).
Personne
l
Changes
 
in
 
management
 
In
 
June,
 
Saara
 
Tahvanainen
 
(b.
 
1974,
 
M.S.S.)
 
assumed
 
the
position
 
of
 
Executive
 
Vice
 
President,
 
Marketing
 
and
Communications
 
and
 
member
 
of
 
the
 
Board
 
of
 
Management.
 
Ms
Tahvanainen
 
succeeded
 
Mr
 
Atte
 
Palomäki.
 
Also
 
in
 
June,
 
Anders
 
Lindberg
 
(b.
 
1965,
 
MBA,
 
M.Sc.
 
Eng.)
assumed
 
the
 
position
 
of
 
President,
 
Energy,
 
Executive
 
Vice
President,
 
and
 
member
 
of
 
Board
 
of
 
Management.
 
Mr
 
Lindberg
succeeded
 
Mr
 
Sushil
 
Purohit.
In
 
November,
 
Wärtsilä
 
announced
 
its
 
plan
 
to
 
simplify
 
the
organisation
 
and
 
reporting
 
structure
 
by
 
discontinuing
 
Marine
Systems
 
as
 
an
 
organisational
 
unit
 
and
 
a
 
reporting
 
segment
 
as
 
of
 
1
January
 
2024.
 
Consequently,
 
Wärtsilä
 
Marine
 
Power
 
will
 
change
 
its
name
 
to
 
Wärtsilä
 
Marine
 
as
 
of
 
January
 
1,
 
2024.
 
It
 
will
 
be
 
led
 
by
Roger
 
Holm,
 
current
 
President,
 
Marine
 
Power
 
and
 
Executive
 
Vice
President.
 
Tamara
 
de
 
Gruyter,
 
current
 
President,
 
Marine
 
Systems,
will
 
continue
 
as
 
President,
 
Portfolio
 
Business,
 
and
 
Executive
 
Vice
President
 
and
 
member
 
of
 
the
 
Wärtsilä
 
Board
 
of
 
Management.
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
 
to
 
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
 
applying
 
the
 
Code
 
of
 
Conduct
and
 
promotes
 
its
 
implementation
 
through
 
effectively
 
communicating
its
 
contents
 
to
 
all
 
employees.
 
The
 
company
 
monitors
 
the
 
Financial
 
review
application
 
of
 
the
 
Code
 
internally
 
to
 
ensure
 
understanding
 
and
commitment
 
throughout
 
the
 
organisation.
 
As
 
at
 
the
 
end
 
of
 
2023,
16,983
 
employees,
 
covering
 
93%
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,
 
the
focusing
 
of
 
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
 
lay
 
in
 
the
 
areas
 
of
regulatory
 
emission
 
restrictions,
 
and
 
changes
 
in
 
customer
 
attitudes
to
 
using
 
combustion
 
engines
 
and
 
fossil
 
fuels.
 
These
 
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
 
2023,
 
R&D
 
expenditure
 
totalled
 
EUR
258
 
million,
which
 
represents
 
4.3%
of
 
net
 
sales.
 
The
 
majority
 
of
 
these
investments
 
targeted
 
improved
 
environmental
 
performance.
 
According
 
to
 
Wärtsilä’s
 
“Set
 
for
 
30”
 
decarbonisation
 
commitment,
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.
During
 
2023,
 
Wärtsilä’s
 
“Set
 
for
 
30”
 
programme
 
proceeded
 
as
planned.
 
The
 
company
 
set
 
GHG
 
emission
 
reduction
 
targets
 
and
defined
 
action
 
plans
 
for
 
the
 
period
 
of
 
2022-2024.
 
Green
 
electricity
was
 
used
 
in
 
Finland,
 
Norway,
 
Italy
 
and
 
the
 
Netherlands.
 
Wärtsilä
also
 
continued
 
its
 
internal
 
energy
 
saving
 
campaign
 
globally.
During
 
2023,
 
Wärtsilä
 
introduced
 
the
 
marine
 
sector’s
 
first
commercially
 
available
 
4-stroke
 
engine-based
 
solution
 
for
 
ammonia
fuel.
 
The
 
new
 
solution
 
enables
 
a
 
significant
 
advance
 
in
 
sustainable
shipping
 
operations
 
 
during
 
a
 
time
 
in
 
which
 
ship
 
owners
 
are
seeking
 
viable
 
options
 
among
 
green
 
fuels.
 
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
 
1.3
 
per
employee
 
in
 
2023.
Wärtsilä
 
aims
 
at
 
offering
 
its
 
employees
 
and
 
contractors
 
a
 
hazard-
free
 
working
 
environment,
 
and
 
to
 
minimise
 
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
 
2023,
 
the
 
corporate
 
total
recordable
 
injury
 
frequency
 
rate
 
(TRIF)
 
was
 
2.62
 
(2.57).
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
human
 
rights,
 
equal
 
opportunities
 
and
 
fair
 
employment
 
practices,
as
 
well
 
as
 
being
 
listed
 
in
 
the
 
company’s
 
supplier
 
handbook.
Anti-corruption
 
and
 
bribery
 
matters
Wärtsilä’s
 
Code
 
of
 
Conduct,
 
anti-corruption
 
policy,
 
and
 
broker
directive
 
expressly
 
prohibits
 
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
 
2023,
88
%
 
of
 
Wärtsilä’s
 
employees
 
had
 
participated
 
in
 
anti-
corruption
 
training
 
sessions.
 
Employees
 
are
 
encouraged
 
to
 
provide
feedback
 
and
 
communicate
 
suspected
 
misconduct
 
to
 
line
management
 
or
 
directly
 
to
 
the
 
Compliance,
 
Legal
 
Affairs,
 
or
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial
 
review
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
 
for
 
successfully
 
achieving
these
 
ambitions
 
and
 
enabling
 
its
 
customers
 
to
 
decarbonise
 
their
economic
 
activities.
 
Wärtsilä
 
has
 
a
 
key
 
role
 
to
 
play
 
in
 
decarbonising
 
vessel
 
operations
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.
Wärtsilä’s
 
goal
 
is
 
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.
 
Wärtsilä
 
has
 
a
 
major
 
programme
 
for
 
testing
 
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
 
carried
 
out
 
long-
term
 
product
 
development
 
activities
 
focusing
 
on
 
fuel
 
flexibility,
energy
 
efficiency,
 
and
 
emissions
 
reduction.
 
Already
 
today,
 
Wärtsilä
engines
 
can
 
run
 
on
 
biofuels,
 
ammonia,
 
and
 
methanol
 
as
 
well
 
as
 
on
hydrogen
 
blends.
 
In
 
2023,
 
the
 
development
 
of
 
concepts
 
for
 
pure
hydrogen
 
continued
 
throughout
 
the
 
year.
 
A
 
concept
 
will
 
be
 
selected
for
 
further
 
industrialisation
 
in
 
2024,
 
aligned
 
with
 
requirements
 
from
the
 
Energy
 
Business.
 
Also,
 
during
 
2023,
 
the
 
development
 
and
validation
 
of
 
ammonia
 
concepts
 
continued.
 
One
 
of
 
these
 
concepts
was
 
industrialised
 
for
 
the
 
Wärtsilä
 
25
 
Ammonia
 
marine
 
engine,
which
 
was
 
released
 
for
 
sales
 
at
 
the
 
end
 
of
 
2023.
 
Moreover,
Wärtsilä
 
launched
 
four
 
additional
 
methanol
 
marine
 
engines.
Wärtsilä
 
has
 
carried
 
out
 
an
 
assessment
 
regarding
 
its
 
economic
activities
 
against
 
the
 
EU
 
Sustainable
 
Finance
 
Taxonomy’s
Delegated
 
Acts,
 
as
 
required
 
by
 
the
 
Delegated
 
Act
 
on
 
Article
 
8.
Wärtsilä
 
Taxonomy
 
KPIs
 
for
 
the
 
year
 
2023
 
are
 
presented
 
in
 
the
tables
 
on
 
the
 
following
 
pages.
Major
 
parts
 
of
 
Wärtsilä’s
 
economic
 
activities,
 
such
 
as
 
services,
 
are
currently
 
not
 
covered
 
in
 
the
 
Delegated
 
Acts.
 
Services
 
accounted
 
for
52%
 
of
 
Wärtsilä’s
 
net
 
sales
 
in
 
2023.
 
Services
 
are
 
a
 
key
 
enabler
 
of
installation
 
uptime,
 
reliability,
 
reduced
 
fuel
 
consumption,
 
and
 
lower
emissions.
 
Wärtsilä
 
has
 
a
 
key
 
role
 
to
 
play
 
in
 
decarbonising
 
vessel
 
operations
and
 
the
 
overall
 
shipping
 
value
 
chain.
 
The
 
company’s
 
extensive
product
 
and
 
solutions
 
portfolio,
 
including
 
engines,
 
digital
technologies,
 
propulsion
 
systems,
 
hybrid
 
solutions,
 
integrated
powertrain
 
systems,
 
and
 
emission
 
abatement
 
solutions
 
are
 
key
contributors
 
to
 
making
 
zero-emissions
 
shipping
 
possible.
 
However,
they
 
are
 
all
 
outside
 
the
 
taxonomy
 
scope
 
since
 
only
 
the
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,
17
%
 
of
 
Wärtsilä’s
 
turnover
 
was
 
estimated
 
to
 
be
 
eligible,
including
 
the
 
energy
 
storage
 
business,
 
biogas
 
solutions,
 
and
 
digital
voyage
 
optimisation
 
solutions.
 
Turnover
CapEx
OpEx
Non-eligible
83%
77%
88%
Eligible
17%
23%
12%
Aligned
0%
0%
0%
In
 
order
 
to
 
report
 
this
 
information,
 
Wärtsilä
 
has
 
assessed
 
its
economic
 
activities
 
against
 
the
 
economic
 
activities
 
included
 
in
 
the
Delegated
 
Acts.
 
Eligible
 
economic
 
activities
 
have
 
been
 
identified
 
by
comparing
 
the
 
referred
 
NACE
 
codes
 
in
 
the
 
Delegated
 
Acts
 
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.
 
As
 
the
 
next
step,
 
Wärtsilä
 
compared
 
the
 
economic
 
activities
 
against
 
the
technical
 
screening
 
criteria,
 
including
 
the
 
‘do
 
no
 
significant
 
harm’
criteria
 
and
 
minimum
 
social
 
safeguards,
 
and
 
have
 
searched
 
for
supporting
 
proof
 
points.
 
With
 
the
 
approach
 
being
 
a
 
stringent
interpretation
 
of
 
the
 
alignment
 
criteria
 
provided
 
by
 
the
 
European
Union
 
regulation
 
on
 
taxonomy,
 
Wärtsilä
 
cannot
 
claim
 
any
 
of
 
the
taxonomy-eligible
 
revenue
 
streams
 
in
 
2023
 
as
 
being
 
also
taxonomy-aligned.
 
The
 
same
 
applies
 
to
 
both
 
capital
 
and
operational
 
expenditures
 
in
 
2023.
 
Despite
 
the
 
low
 
taxonomy
coverage
 
Wärtsilä’s
 
products
 
and
 
services
 
play
 
a
 
key
 
role
 
in
decarbonising
 
the
 
energy
 
and
 
marine
 
sectors
 
and
 
Wärtsilä
 
invests
significant
 
R&D
 
funds
 
to
 
support
 
and
 
enable
 
the
 
transition.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial
 
review
KPI
Identified
 
eligible
 
economic
 
activities
Notes
Turnover
 
Energy
 
storage
 
business
 
Biogas
 
solutions
 
Digital
 
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
 
Passenger
 
cars
 
and
 
light
 
commercial
 
vehicles
 
Capitalised
 
R&D
 
costs
 
related
 
to
 
energy
 
storage
 
Capitalised
 
R&D
 
costs
 
related
 
to
 
voyage
optimisation
 
Capitalised
 
R&D
 
costs
 
related
 
to
 
future
 
fuels
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.
 
However,
 
capitalised
 
R&D
 
costs
 
related
 
to
the
 
engines’
 
capability
 
to
 
run
 
on
 
future
 
green
 
and
 
zero-carbon
 
fuels
 
was
considered
 
eligible
 
because
 
these
 
fuels
 
enable
 
Wärtsilä’s
 
customers
 
to
generate
 
electricity
 
from
 
renewable
 
non-fossil
 
gaseous
 
and
 
liquid
 
fuels
 
in
the
 
future.
 
No
 
CapEx
 
related
 
to
 
taxonomy
 
eligible
 
manufacturing
 
was
identified.
OpEx
 
Non-capitalised
 
R&D
 
costs
 
related
 
to
 
energy
storage
 
Non-capitalised
 
R&D
 
costs
 
related
 
to
 
biogas
solutions
 
Non-capitalised
 
R&D
 
costs
 
related
 
to
 
voyage
optimisation
 
Non-capitalised
 
R&D
 
costs
 
related
 
to
 
future
 
fuels
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
 
the
 
engines’
 
capability
 
to
 
run
 
on
 
future
green
 
and
 
zero-carbon
 
fuels
 
was
 
considered
 
eligible
 
because
 
these
 
fuels
enable
 
Wärsilä’s
 
customers
 
to
 
generate
 
electricity
 
from
 
renewable
 
non-
fossil
 
gaseous
 
and
 
liquid
 
fuels
 
in
 
the
 
future.
 
No
 
OpEx
 
related
 
to
 
taxonomy
eligible
 
manufacturing
 
was
 
identified.