Wärtsilä (WRT1V) Investor presentation summary

Strategic focus and business structure

• Operating model simplified to two main businesses: Marine and Energy, each targeting decarbonisation through technology and services.

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

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

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

• Portfolio simplification and divestments continue to improve profitability and focus.

Decarbonisation and market drivers

• Regulatory pressure (IMO, EU, US, China) accelerates demand for green solutions in both marine and energy sectors.

• Marine decarbonisation driven by alternative fuels, hybrid solutions, and emission abatement technologies.

• Energy sector shift to renewables requires balancing solutions and energy storage, with renewables expected to become the largest electricity source by 2025.

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

Technology leadership and innovation

• Leading market share in medium-speed engines, hybrid solutions, and carbon capture for marine.

• Engines capable of running on biofuels, methanol, hydrogen, and ammonia; commercial ammonia and hydrogen engines launched.

• Energy storage and optimisation business has grown 3X since 2021 and is now profitable.

• R&D investment at 4% of net sales annually, supporting rapid product development and future fuel readiness.