Close

You have selected 0 articles to be compiled in your PDF. Please select any other articles you like to add or remove from the list below. Click on the Download button to download your compiled PDF.

  • 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

Generating PDF file... 0%

Your PDF report is being generated. Handling and creating the file may take a while depending on amount of content.

Abort

Ready

PDF is ready

Error

PDF generation failed. Please try again later.

Close

Emailed report includes selected content and your notes. Changes made to the content and to the notes of the report by both the sender and the receiver will also be always shown in the future when arriving to the report via the sent link.

Cancel

Annual Report 2013

q4 2013

q3 2013

q2 2013

q1 2013

Annual Report 2014

q4 2014

q3 2014

q2 2014

q1 2014

Annual Report 2015

q4 2015

q3 2015

q2 2015

q1 2015

q1 2016

q2 2016

q1 2016

q2 2016

q3 2016

q4 2016

Annual Report 2016

CEO review

2015 was in many ways a successful year for Wärtsilä. Net sales and profitability grew steadily from the previous year as a result of the Company’s well-positioned offering, its growing Services business, and the focus on continuous improvement. Given the developments in our market environment, we can be pleased with our performance.

Conditions in the power generation markets were challenging. The decline in our Energy Solutions order intake reflected hesitancy on the part of our customers to commit to investment decisions in the wake of continued macro-economic uncertainty. Nevertheless, industrialisation and changing demographics continue to drive growth in electricity consumption in the emerging markets, and the increasing share of renewables within the energy mix raises the need for dynamic balancing power. The flexibility and efficiency of our power plant offering positions us well to benefit from the trend towards decentralised, sustainable power production.

In the marine markets, contracting activity remained under pressure. Low oil prices reduced exploration and development activities, which resulted in a sharp decline in demand for offshore vessels. At the same time, the shipping industry continues to suffer from overcapacity and low freight rates. While our broad market exposure and extensive offering has enabled us to navigate the current shipbuilding cycle relatively well, we need the flexibility to adapt to changes in market dynamics. Therefore, during the summer, we announced measures to realign our Marine Solutions organisation. The decision to adjust capacity is never made lightly, but it became necessary in order to maintain our competitive position in the global market.

Services' net sales reached an all-time high level of EUR 2,184 million.

The Services business was a key contributor to our improved financial performance. We have worked actively to develop a more targeted sales approach, and to enhance our value proposition, in order to achieve our growth ambition for this business area. The 13% growth in Services' net sales clearly demonstrates that our efforts have paid off.

Environmental awareness and changing energy needs are increasingly influencing investments in the markets in which we operate. During the summer, we revised our strategy and mission to reflect these changing industry dynamics. Our aim is to shape the marine and energy markets with advanced technologies and focus on lifecycle performance to enhance our customers’ businesses and benefit the environment. We seek growth by offering innovative and energy efficient lifecycle solutions, as well as by leveraging our leading position in gas based technology. Digitalisation will support our growth ambition, as we utilise the increasing amount of data available to optimise our customers’ operations and equipment, as well as our own internal processes and performance.

During 2015, our digital presence was expanded by the launch of a new digital service portfolio as well as by the acquisition of L-3 Marine Systems International.

The emphasis we place on sustainable innovations becomes increasingly important as the regulatory environment intensifies. The agreement reached during the Paris Climate Conference last fall was a clear milestone in the universal effort to limit global warming. In the marine industry, the ratification of the Ballast Water Convention is close at hand, and the sulphur directive has been implemented in environmentally controlled areas as of the beginning of 2015. Our R&D activities, which represent 2.6% of net sales, are focused on developing clean technologies to support our customers in improving the environmental performance and efficiency of their installations.

Attracting and retaining skilled and committed people is central to our success.

Our aim is to foster an inclusive corporate culture, emphasising diversity and high ethical standards. In this context, we are committed to supporting the UN Global Compact and its principles with respect to human rights, labour, the environment, and anti-corruption. Ensuring the safety of our personnel is our priority and I am pleased that we have continued to move steadily closer to our on-going target of zero lost-time injuries.

We expect the market environment to remain more or less unchanged in 2016.  Nevertheless, we anticipate modest growth in sales and profitability based on our solid order book and pipeline.

I would like to take this opportunity to thank our shareholders for your confidence in our future development, our customers for your trust in our products and services, and last but not least, the entire staff of Wärtsilä for your commitment towards reaching our common goals.

jaakko-autograph.png

Jaakko Eskola
President & CEO

Key figures
Restated*
MEUR 2015 10-12/2015 7-9/2015 4-6/2015 1-3/2015 2014 2013
Net sales 5 029 1 590 1 222 1 230 988 4 779 4 607
Energy Solutions 1 126 374 243 327 182 1 138 1 459
Marine Solutions 1 720 598 448 354 321 1 702 1 309
Services 2 184 619 531 548 485 1 939 1 842
Depreciation, amortisation and impairment -124 -33 -32 -30 -29 -115 -120
Operating result1 612 215 160 137 100 569 557
Operating result1, % 12.2 13.5 13.1 11.1 10.1 11.9 12.1
Profit before taxes 553 199 132 140 82 494 544
Earnings per share, EUR 2.25 0.79 0.49 0.54 0.43 1.76 1.98
Order intake 4 932 1 403 1 086 1 159 1 285 5 084 4 821
MEUR 2015 31.12.2015 30.9.2015 30.6.2015 31.3.2015 2014 2013
Balance sheet total 5 589 5 589 5 609 5 622 5 271 5 280 5 209
Interest-bearing liabilities, gross 724 724 778 779 648 666 665
Cash and cash equivalents 334 334 250 269 382 571 388
ROI, continuing operations, % 21.0 21.0 20.3 20.8 22.0 20.3 22.6
Gearing 0.17 0.17 0.26 0.25 0.14 0.05 0.15
Order book, end of period 4 882 4 882 5 112 5 325 4 931 4 530 4 311
Year-end market capitalisation 8 314 - - - - 7 315 7 055
Personnel, number at end of period 18 856 18 856 19 237 19 427 17 707 17 717 18 315
1 Figures exclude non-recurring items.
* Figures related to the statement of income have been restated due to the two-stroke business being classified as discontinued operations.
Close

For the best experience of our Annual Report, please update your browser to a newer version.