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  • This is Wärtsilä OpenClose subpages
    • CEO review
    • Wärtsilä in brief OpenClose subpages
      • Corporate strategy
      • Our targets OpenClose subpages
        • Financial targets
        • Sustainability targets
      • The value of sustainable innovations
      • Sustainability highlights
    • Energy solutions OpenClose subpages
      • Operating environment
      • Strategy
      • Energy Solutions and sustainability
      • Energy Solutions' development in 2015
    • Marine Solutions OpenClose subpages
      • Operating environment
      • Strategy
      • Marine Solutions and sustainability
      • Marine Solutions' development in 2015
    • Services OpenClose subpages
      • Operating environment
      • Strategy
      • Services and sustainability
      • Services' development in 2015
    • Manufacturing review
    • Research and development
  • Sustainability OpenClose subpages
    • Wärtsilä's sustainability approach
    • Stakeholder relations
    • Sustainability management OpenClose subpages
      • Guiding principles OpenClose subpages
        • Code of Conduct
        • QEHS Policy
        • Employee practices
      • Management approach OpenClose subpages
        • People management
        • Environmental management
        • Occupational health and safety
        • Responsible business conduct
        • Product design principles
        • Supply chain management
    • Sustainability data OpenClose subpages
      • Economic OpenClose subpages
        • Economic performance
        • Market presence
      • Environment OpenClose subpages
        • Materials
        • Energy
        • Water
        • Emissions
        • Effluents and waste
        • Products and services
        • Expenditures
      • Social OpenClose subpages
        • Structural changes
        • Employment
        • Labour / management relations
        • Occupational health and safety
        • Training and education
        • Diversity and Equal opportunity
        • Product and Service Labelling
      • Compliance
    • Report profile OpenClose subpages
      • Materiality assessment
      • Reporting principles
      • Independent Assurance Report
    • GRI and UNGC index
  • Governance OpenClose subpages
    • Corporate governance OpenClose subpages
      • Annual General Meeting
    • Board of Directors OpenClose subpages
      • Operations of the Board of Directors
      • Responsibilities
      • Board committees
    • Board of Management OpenClose subpages
      • The President & CEO and the Deputy CEO
      • Operations of the Board of Management
    • Other management OpenClose subpages
      • Business management teams
      • Managing Directors of the subsidiaries
    • Internal control OpenClose subpages
      • Values and the control environment
      • Business processes
      • Guidelines and communication
      • Monitoring
    • Audit
    • Related party transactions
    • Insider management
    • Salary and remuneration report 2015
    • Risks and risk management OpenClose subpages
      • Strategic risks
      • Operational risks
      • Hazard risks
      • Financial risks
      • Risk profiles and responsibilities
  • Investors OpenClose subpages
    • Shares and shareholders OpenClose subpages
      • The Wärtsilä share on Nasdaq Helsinki
      • Shareholders
    • Wärtsilä on the capital markets
    • Analysts
    • Information for shareholders OpenClose subpages
      • Financial information 2016
    • Annual summary of stock exchange releases
  • Board of Directors' report OpenClose subpages
    • Highlights 2015
    • Strategy
    • The year 2015 OpenClose subpages
      • Market development
      • Order intake and order book
      • Net sales and profitability
      • Balance sheet, financing and cash flow
      • Capital expenditure
      • Strategic projects, acquisitions joint ventures and expansion of the network
      • Research and development, product launches
      • Personnel
      • Restructuring programmes
      • Changes in management
      • Sustainable development
      • Shares and shareholders
      • Decisions by the AGM
      • Risk and uncertainties
    • Market outlook
    • Prospects for 2016
    • Dividend proposal
  • Financials OpenClose subpages
    • Five years in figures
    • Calculations of financial ratios
    • Consolidated financial statements OpenClose subpages
      • Consolidated statement of income
      • Consolidated statement of comprehensive income
      • Consolidated statement of financial position
      • Consolidated statement of cash flows
      • Consolidated statement of changes in equity
      • Accounting principles for the consolidated financial statements
      • Notes to the consolidated financial statements OpenClose subpages
        • 1. Segment information
        • 2. Acquisitions
        • 3. Disposals
        • 4. Long-term construction contracts and operating and maintenance agreements
        • 5. Other operating income
        • 6. Material and services
        • 7. Employee benefit expenses
        • 8. Depreciation, amortisation and impairment
        • 9. Measures of profit and non-recurring items
        • 10. Financial income and expenses
        • 11. Income taxes
        • 12. Earnings per share
        • 13. Intangible assets
        • 14. Property, plant & equipment
        • 15. Investments in associates and joint ventures
        • 16. Available-for-sale financial assets
        • 17. Inventories
        • 18. Financial assets and liabilities by measurement category
        • 19. Other receivables
        • 20. Cash and cash equivalents
        • 21. Deferred taxes
        • 22. Pension obligations
        • 23. Equity
        • 24. Provisions
        • 25. Financial liabilities
        • 26. Other liabilities
        • 27. Derivative financial instruments
        • 28. Collateral, contingent liabilities and other commitments
        • 29. Related party disclosures
        • 30. Auditors' fees and services
        • 31. Exchange rates
        • 32. Subsidiaries
        • 33. Financial risks
    • Parent Company financial statements OpenClose subpages
      • Parent company income statement
      • Parent company balance sheet
      • Parent company cash flow statement
      • Accounting principles for the parent company
      • Notes to the parent company financial statements OpenClose subpages
        • 1. Other operating income
        • 2. Personnel expenses
        • 3. Depreciation and amortisation
        • 4. Financial income and expenses
        • 5. Extraordinary income and expenses
        • 6. Income taxes
        • 7. Fixed assets
        • 8. Non-current receivables
        • 9. Current receivables from Group companies
        • 10. Prepaid expenses and accrued income
        • 11. Shareholders' equity
        • 12. Liabilities
        • 13. Accrued expenses and deferred income
        • 14. Liabilities to Group companies
        • 15. Collateral, contingent liabilities and other commitments
        • 16. Related party loans and other commitments
        • 17. Auditor's fees and services
    • Proposal of the Board
    • Auditor´s report
    • Quarterly figures 2014-2015

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Annual Report 2013

q4 2013

q3 2013

q2 2013

q1 2013

Annual Report 2014

q4 2014

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q1 2014

Annual Report 2015

q4 2015

q3 2015

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q1 2015

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Annual Report 2016


Wärtsilä aims at profitable growth by providing advanced technologies and lifecycle solutions to its marine and energy market customers.

Increasing environmental awareness and changing energy needs are affecting the way that our customers operate. With our integrated products and services, we are well positioned today to respond to the need for energy efficient and flexible solutions. We will meet the increasing demand for gas based technologies with our industry leading multiple fuel products and LNG solutions. We will leverage our project management and engineering competences to achieve growth by offering our customers new and innovative solutions. Our growth ambitions are supported by our superior global service network.

With our production and supply chain management, we constantly seek ways to provide high quality and maintain cost efficiency – often in co-operation with leading industrial partners in our key growth markets. Our market driven investments in R&D and our focus on digitalisation create a strong foundation for securing and strengthening our position at the forefront of technological innovation. This innovative culture, together with our constant emphasis on safety, diversity, and high ethical standards, attract skilled and committed people and lead to a high performing organisation. Our entrepreneurial drive, customer focus, and passion for doing right not only create new opportunities and environmentally sustainable solutions, but also bring value to all our stakeholders.


Strategy implementation in 2015

The importance of fuel efficiency is increasing in both the marine and energy markets. Wärtsilä’s launch of the new generation Wärtsilä 31 engine was a milestone achievement in product efficiency improvement. The Wärtsilä 31 has been recognised by Guinness World Records as being the world’s most efficient 4-stroke diesel engine; its diesel fuel consumption being as low as 165 g/kWh. Within the Services business, customer emphasis on optimising efficiency drove the demand for propulsion system upgrades, as well as for long-term service agreements.

The transition to natural gas fuelled applications in the power generation market is evident, with gas and multi-fuel applications accounting for 71% of Energy Solutions' quotation activity and 46% of its order intake. Gas based contracts included several orders for peaking and renewable support power plants from the USA. Furthermore, Wärtsilä Services received orders to convert power plants to operate on natural gas, among the more significant of these being the Maltese Delimara Power Station. Gas is of interest also in the marine markets. Gas carriers continued to be the largest segment in terms of Marine Solutions’ order intake, partly due to the increasing use of Wärtsilä 34DF engines for auxiliary applications in the LNG carrier segment. Wärtsilä maintained its position as a leading supplier of gas handling systems to the marine markets, and received orders to deliver similar equipment to land-based installations as well.

The development of Wärtsilä’s digital presence was a key theme during 2015. A new digital service portfolio, Wärtsilä Genius services, was launched, and Wärtsilä’s digitalisation competences were further strengthened by the acquisition of L-3 Marine Systems International.

Wärtsilä continued to invest in technology development in order to maintain the competitiveness of its product portfolio, and to secure a leading position in sustainable innovation. The R&D related expenditure totalled EUR 132 million or 2.6% of net sales, with the areas of emphasis being efficiency improvement, fuel flexibility, and the reduction of environmental impact.

To promote a high performance culture, Wärtsilä arranged leadership development programmes, as well as learning solutions for core competence areas in sales, project management, and technology. Wärtsilä employees attended a total of 55,620 training days, which represents on average 3.0 training days per employee. Diversity continued to be a focus area during 2015, the emphasis being on local diversity action planning and implementation. Additionally, Wärtsilä participated in the Dialogi 2015 programme with the aim of developing and promoting female leadership and careers in business. Wärtsilä was also one of the main sponsors of the bi-annual Women in Tech event. Personnel safety is a priority for Wärtsilä and during the year the company moved steadily closer to its on-going target of zero lost-time injuries. Wärtsilä also introduced a WeCare mobile application with the aim of increasing near miss and hazard reporting.

Financial targets and guidance realisation

Wärtsilä’s long-term financial target is to grow faster than global GDP and to maintain its operating profit margin between 14% at the peak of the cycle and 10% at the trough. Furthermore, the target is to maintain gearing below 0.50, and to pay a dividend of at least 50% of earnings per share over the cycle.

Wärtsilä’s performance in 2015 was in line with the Company’s long-term targets and with the guidance set for the year. On 29 January 2015, Wärtsilä estimated its net sales for 2015 to grow by 0-10% and operational profitability to be 12.0-12.5%. The expectations were revised on 17 July to include the impact of the L-3 Marine Systems International (MSI) acquisition, whereby net sales were expected to grow by 5-10% and profitability was estimated to be around 12.0-12.5%. MSI was expected to contribute approximately EUR 250 million to sales and EUR 9 million to the operating result during 2015. Excluding purchase price allocation amortisation, MSI’s operating result was estimated to reach EUR 16 million.

Net sales for 2015 increased by 5%, while the IMF estimates global real GDP to have increased by 3.1%. Profitability improved to 12.2%. Gearing was 0.17 and the Board of Directors' proposed dividend of EUR 1.20 per share represents 53% of operational earnings.

Long-term financial targets
Target Development in 2015 Development in 2014
Net sales growth faster than global GDP 5% growth 4% growth
Operating profit margin between 10% and 14% 12.2% 11.9%
Gearing below 0.50 0.17 0.05
Dividend payment at least 50% of earnings per share over the cycle 53%1 65%
1 Proposal of the Board of Directors.


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