Wärtsilä (WRT1V) Investor presentation summary

Strategic focus and business structure

• Operating with two main businesses: Marine and Energy, each targeting decarbonisation through advanced technologies and services.

• Marine offers engines, propulsion, hybrid systems, and services to support carbon neutrality in shipping.

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

• Group structure was 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 decarbonisation is accelerating due to regulations, carbon costs, and demand for green transport.

• Energy sector is shifting to renewables, with global electricity generation needing to triple and renewables to grow 8x by 2050.

• Key growth areas: energy storage, optimisation, sustainable fuels, and service agreements.

• Regulatory changes are driving alternative fuel adoption; 50% of ship orderbook is alternative fuel-capable.

Financial performance and targets

• Net sales increased by 18% in Q3 2024, with a strong order book of €7.6bn.

• Comparable operating result rose by 41%, with service net sales up 6%.

• Financial targets: 5% annual organic growth, 12% operating margin, gearing below 0.5, and dividend payout of at least 50% of earnings.

• Strong cash flow and balance sheet support strategic investments.