Wärtsilä (WRT1V) Investor presentation summary

Strategic focus and business structure

• Two main businesses: Marine (engines, propulsion, hybrid tech, services) and Energy (grid-balancing plants, storage, optimisation).

• Group structure simplified from January 2024, with divestments in non-core portfolio businesses.

• Strategic themes: Transform (growth via decarbonisation) and Perform (operational improvements, profitability).

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

Decarbonisation and market drivers

• Marine and energy sectors face rapid decarbonisation due to regulations (IMO, EU, US, China) and customer demand.

• Alternative fuels (LNG, methanol, ammonia, hydrogen) and hybrid/electric solutions are gaining traction.

• Carbon capture, emission abatement, and vessel efficiency upgrades are key pathways.

• By 2050, electricity generation must triple and renewables grow 8x to meet net zero targets.

Marine business highlights

• Market leader in 4-stroke medium speed engines and hybrid solutions; strong in alternative fuel engines.

• 50% of new vessel orderbook set to run on alternative fuels; LNG and methanol are leading options.

• Service agreements cover 29% of installed base, with >90% renewal rate.

• Decarbonisation-driven retrofits and carbon capture solutions expected to drive EUR 15-20bn investment over the next decade.

• Cruise and offshore segments show strong recovery and growth in newbuild orders.