Wärtsilä (WRT1V) Investor presentation summary

Strategic direction and segment structure

• Three reporting segments: Marine, Energy, and Energy Storage, with Portfolio Business as other activities.

• New segment structure effective from April 2025, with restated figures to be published in Q2 2025.

• Financial targets: Marine & Energy aim for 5% annual organic growth and 14% operating margin; Energy Storage targets low double-digit growth and 3-5% margin.

• Group targets include gearing below 0.5 and dividend payout of at least 50% of earnings.

Market fundamentals and decarbonisation trends

• Decarbonisation drives marine and energy sectors, with regulatory pressure from IMO, EU, USA, and China.

• Marine industry faces progressive switch to carbon-neutral and zero-carbon fuels, with increasing adoption of hybrid and battery systems.

• Energy sector sees renewables as main power source, requiring balancing solutions and digital optimisation.

• Regulatory changes are accelerating alternative fuel adoption; 50% of ship orderbook in 2024 is alternative fuel capable.

Financial and operational performance

• All-time high order book of €8.5bn; net sales up 18% to €1.56bn in Q1 2025.

• Comparable operating result increased by 29% to €171m, with margin at 11%.

• Service net sales reached over €3.4bn in 2024, with >90% renewal rate for service contracts.

• Book-to-bill ratios above 1 in all service categories for both Marine and Energy.