Wärtsilä (WRT1V) Investor presentation summary

Strategic focus and business structure

• Operating model simplified to two main businesses: Marine and Energy, each targeting decarbonisation and profitable growth.

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

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

• Key growth drivers include energy storage, optimisation, sustainable fuels, and expanding service agreements.

• Portfolio Business divestments and operational improvements are ongoing to enhance profitability.

Market fundamentals and regulatory drivers

• Marine and energy sectors face accelerating decarbonisation due to global policies and regulations.

• IMO and EU regulations are driving rapid adoption of alternative fuels and emission reduction technologies.

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

• Cost of emissions and fuel regulations are closing the price gap between fossil and sustainable fuels.

• Tightening regulations are boosting demand for retrofits and alternative fuel conversions.

Decarbonisation technology and innovation

• Engines capable of running on biofuels, methanol, hydrogen, and ammonia are available or in development.

• Onboard carbon capture and storage (CCS) systems are being commercialised, with first full-scale deployment in 2024.

• Hybrid-electric propulsion is challenging traditional engines, offering higher efficiency and lower emissions.

• R&D investment is 4% of net sales, supporting a broad future fuel roadmap and digital optimisation solutions.

• Modular engine design enables cost-effective upgrades to new fuels.