Wärtsilä (WRT1V) Investor presentation summary

Strategic direction and business structure

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

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

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

• Committed to 5% annual organic growth, 12% operating margin, and gearing below 0.50.

• 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, demand for green transport, and adoption of sustainable fuels.

• Energy sector supported by global net-zero targets, rapid growth in renewables, 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 targets.

Operational improvements and financial performance

• Achieved significant growth in services (+26%) and energy storage & optimisation (3x since 2021).

• Improved quality of order book margins and turned energy storage & optimisation to profit.

• Divested non-core businesses and optimised manufacturing footprint for cost savings.

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