Wärtsilä (WRT1V) Investor presentation summary

Strategic focus and business structure

• Operating with two main businesses: Marine and Energy, both driving decarbonisation through technology and services.

• Marine focuses on engines, propulsion, hybrid systems, and services to support carbon neutrality.

• Energy targets 100% renewable electricity with grid-balancing plants, storage, and optimisation tech.

• Group structure simplified in 2024, with divestments in non-core portfolio businesses.

• Strong innovation track record, investing 4% of net sales in R&D annually.

Market fundamentals and growth drivers

• Marine and energy sectors are rapidly transitioning due to regulations, technology, and demand for green solutions.

• IMO and EU regulations are accelerating decarbonisation, with fuel costs expected to double by 2030.

• By 2050, electricity generation must triple and renewables grow eightfold to meet net zero targets.

• Thermal balancing and energy storage markets are forecast to grow 19% and 17% CAGR to 2030, respectively.

• Marine newbuild and retrofits driven by alternative fuels and emission reduction technologies.

Financial performance and targets

• 2023 net sales reached €6.0bn, with 52% from services and 48% from equipment.

• Operating margin target set at 12%, with 5% annual organic growth and gearing below 0.5.

• Dividend policy aims to distribute at least 50% of earnings.

• Q1 2024 saw an 11% increase in order intake and a 50% rise in comparable operating result.

• Strong cash flow and balance sheet support strategic investments.