Wärtsilä (WRT1V) Investor presentation summary

Strategic direction and business structure

• Focuses on decarbonisation in marine and energy sectors, with two main business units: Marine and Energy.

• Marine offers engines, propulsion, hybrid technologies, and services supporting carbon neutrality.

• Energy provides grid-balancing power plants, hybrid solutions, energy storage, and optimisation technology for a 100% renewables future.

• Committed to 5% annual organic growth, 12% operating margin, and gearing below 0.5.

• Investing 4% of net sales in R&D annually, with innovations in biofuels, methanol, hydrogen, and ammonia engines.

Market fundamentals and growth drivers

• Marine sector driven by regulatory pressure (IMO, EU), demand for green transport, and technology shifts to sustainable fuels.

• Energy sector supported by global net-zero targets, rapid renewables growth, and need for balancing solutions.

• Both sectors benefit from digitalisation, data-driven optimisation, and performance-based agreements.

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

Operational performance and financials

• Net sales increased by 7% and order intake by 10% in Q2 2024; order book at all-time high of €7.6bn.

• Comparable operating result up 63% year-on-year, with double-digit margin.

• Services represent over 50% of net sales, with a 90% renewal rate on service agreements.

• Strong cash flow and balance sheet support strategic investments.