Close

Economic

Wärtsilä's purpose is to create value for its various stakeholders. The focus is on profitability and raising shareholder value. Achieving this depends on our ability to satisfy the expectations of our other stakeholders as well. These include providing customers with high-quality and environmentally sound products, solutions and services, building long-term partnerships with suppliers, offering employees competitive compensation and working conditions, and contributing to the well-being of the local communities in which we operate. Good economic performance establishes a platform for the other aspects of sustainability – environmental and social responsibility.

Economic performance
Direct Economic Value Distributed (G4-EC1)
MEUR 2016 2015 2014 2013 2012
Customers
Net sales 4 801 5 029 4 779 4 654 4 725
Suppliers
Cost of goods, materials, and services purchased 2 969 3 136 3 066 2 901 3 007
Value added 1 831 1 893 1 713 1 753 1 717
Distribution of value added
Distributed to stakeholders 1 593 1 555 1 475 1 443 1 432
Employees
Wages and salaries 939 935 906 903 887
Public sector
Taxes and social dues 343 349 313 314 317
Creditors
Net financial items -53 -34 -28 -19 -30
Shareholder
Dividends 256 237 227 207 197
Communities
Donations given 2 1 1 1 1
For business development 238 338 239 310 285
2016 2015 2014 2013 2012
Customers
Net sales (MEUR) 4 801 5 029 4 779 4 654 4 725
Net sales by market area (MEUR)
Europe 1 581 1 566 1 402 1 329 1 202
Asia 1 774 2 051 1 989 1 759 2 009
Americas 1 039 1 006 840 1 068 994
Africa 313 329 398 405 398
Other 94 78 150 93 122
Suppliers
Cost of goods, materials, and services purchased (MEUR) 2 969 3 136 3 066 2 901 3 007
Employees
Salaries and wages (MEUR) 939 935 906 903 887
Salaries and wages by market area (MEUR)
Europe 650 632 637 649 631
Asia 153 163 144 138 145
Americas 110 112 99 91 91
Africa 19 21 18 14 12
Other 7 8 8 10 8
Net sales/employee (TEUR) 262 271 265 248 250
Public sector
Taxes and social dues (MEUR) 343 349 313 314 317
Taxes and social costs by market area (MEUR)
Europe 246 246 220 232 234
Asia 45 50 42 34 39
Americas 47 44 37 39 36
Africa 5 6 12 8 6
Other 0 2 2 2 2
Subsidies received (TEUR) 8 343 9 669 11 486 6 331 5 543
Net financial items (MEUR) -53 -34 -28 -19 -30
Community
Donations given, Board of Directors (TEUR) 1 365 110 110 111 104
Donations given, Wärtsilä companies (TEUR) 533 511 608 609 456
Financial implications and other risks and opportunities for the organisation's activities due to climate change (G4-EC2)
Wärtsilä Italia S.p.A is the only subsidiary that falls into the scope of the EU Emission Trading Scheme (ETS) because of the heating plant of the factory. The EU ETS has not had any impact on the company's profitability. Wärtsilä's response to climate change is to develop and provide products, solutions, and services that enable our customers to reduce their greenhouse gas emissions. More information about Wärtsilä's solutions for climate change can be found on our website: www.wartsila.com. The potential business risks related to climate change and Wärtsilä's products are presented under the sustainability and climate change risks in the Risk Management chapter of the Governance review.
Coverage of the organisation's defined benefit plan obligations (G4-EC3)
The pension cover is based on the legislation and agreements in force in each country. In Finland, most of the pension obligations are covered by the Employee Pensions system (TyEL). The largest defined benefit plans are used in Switzerland, Germany, the UK and Sweden. Most of these defined benefit pension plans are managed by pension funds, and their assets are not included in the Group's assets. Wärtsilä's subsidiaries make their payments to pension funds in accordance with the local legislation and practices in each country. Authorised actuaries in each country have performed the actuarial calculations required for the defined benefit plans. More information on the Group's pension obligations can be found in the Financial Review, Note 22. Pension obligations.
Financial assistance received from government (G4-EC4)
Subsidies received (TEUR) 2016 2015 2014 2013 2012
8 343 9 669 11 486 6 331 5 543
The value of the subsidies received in 2016 was EUR 8 343 thousand and they were among others related to R&D projects. The most contributing countries in 2016 were Finland, Spain, and Norway.
Market presence
Wage levels (G4-EC5)
Wärtsilä applies and follows the local employment legislation in all countries and respects the local collective labour agreements, which often define the minimum wage levels. In addition, entry level salaries are benchmarked against the market references by function and educational qualification. Laws and regulations give the minimum level, but often the actual salaries exceed these levels. A total compensation package is tailored for each country on the basis of corporate rewarding guidelines and local market practices. The base salary is set to meet market conditions, the demands of the job, and individual competence and performance.
Hiring principles (G4-EC6)
In principle, all open vacancies are published both externally and internally ensuring equal opportunity to apply for Wärtsilä positions. If there is no specific reason such as a competence transfer need from other countries to hire expatriates to the position, local residents are hired. This principle also applies to senior management. Senior management includes global business and corporate management and local company management positions. Globally, 76% of Wärtsilä’s senior management is locally hired, in other words from the same country as the Wärtsilä subsidiary they work for.

Note

Add a note?

Close

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