What is your outlook for Wärtsilä’s end markets going into 2017?

The demand in our service markets is expected to be solid, and we continue to see growth opportunities in selected regions and segments. Our sizeable installed base and opportunities in new market areas, as well as the interest our customers express in long-term service agreements, support our long-term ambitions for the Services business.

Demand in the energy markets is expected to be solid. Our systematic market development efforts have positively impacted our position in the energy market. Therefore, we consider ourselves well positioned to capture opportunities related to the growth in electricity demand in the emerging markets, the global shift towards renewable energy sources, and the need for distributed, flexible power production.

We expect the marine markets to remain soft. Although the outlook for the cruise and ferry segment is positive, the merchant, gas carrier, and offshore segments continue to suffer from overcapacity, slow trade growth, and customer financial constraints. Our exposure to all the main marine segments and the breadth of our offering continues to position us relatively well in a challenging market.

Why is digitalisation important for Wärtsilä?

We have a clear appetite for development within the field of digitalisation. Not only does this provide enhanced value to our customers in the form of new, data-analytics driven solutions, it also enables us to develop our internal processes through, for instance, the increased use of robotics in our manufacturing, and mathematic modelling in our testing processes. During the year, we strengthened our digital foundation with the appointment of a Chief Digital Officer to the Board of Management, as well as with the acquisition of Eniram. We are also currently in the process of finalising a new digital organisation, with the aim of accelerating Wärtsilä’s digital transformation.

How far are you in terms of rolling out Operational Excellence?

Operational Excellence is one of the building blocks for reaching our 14% profitability target and its aim is to achieve gradual, continuous improvement. Although not fully rolled out, we have already seen certain benefits in terms of, for example, improved inventory management and optimised production flow.

Is there scope for acquisitions going forward?

At the end of 2016, our net debt was EUR 150 million and our gearing was 0.07. Our ambition is to find good investment opportunities for our owners and we have a number of potential acquisitions on our target list. We look for asset light companies with a high services content and strong technological capabilities.