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Wärtsilä's objective 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, as well as on 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 Wärtsilä operate. Good economic performance establishes a platform for the other aspects of sustainability – environmental and social responsibility.

Economic performance
Direct economic value generated and distributed (GRI 201-1)
MEUR 2017 2016 2015 2014 2013
Customers
Net sales 4 923 4 801 5 029 4 779 4 654
Suppliers
Cost of goods, materials, and services purchased 3 021 2 969 3 136 3 066 2 901
Value added 1 902 1 831 1 893 1 713 1 753
Distribution of value added
Distributed to stakeholders 1 656 1 593 1 555 1 475 1 443
Employees
Wages and salaries 1 000 939 935 906 903
Public sector
Taxes and social dues 336 343 349 313 314
Creditors
Net financial items -47 -53 -34 -28 -19
Shareholder
Dividends 272 256 237 227 207
Communities
Donations given 1 2 1 1 1
For business development 246 238 338 239 310
2017 2016 2015 2014 2013
Customers
Net sales (MEUR) 4 923 4 801 5 029 4 779 4 654
Net sales by market area (MEUR)
Europe 1 527 1 581 1 566 1 402 1 329
Asia 1 948 1 774 2 051 1 989 1 759
Americas 1 113 1 039 1 006 840 1 068
Africa 233 313 329 398 405
Other 102 94 78 150 93
Suppliers
Cost of goods, materials, and services purchased (MEUR) 3 021 2 969 3 136 3 066 2 901
Employees
Salaries and wages (MEUR) 1 000 939 935 906 903
Salaries and wages by market area (MEUR)
Europe 689 650 632 637 649
Asia 156 153 163 144 138
Americas 130 110 112 99 91
Africa 18 19 21 18 14
Other 7 7 8 8 10
Net sales/employee (TEUR) 276 262 271 265 248
Public sector
Taxes and social dues (MEUR) 336 343 349 313 314
Taxes and social costs by market area (MEUR)
Europe 235 246 246 220 232
Asia 45 45 50 42 34
Americas 42 47 44 37 39
Africa 13 5 6 12 8
Other 1 0 2 2 2
Subsidies received (TEUR) 9 891 8 343 9 669 11 486 6 331
Net financial items (MEUR) -47 -53 -34 -28 -19
Community
Donations given, Board of Directors (TEUR) 110 1 365 110 110 111
Donations given, Wärtsilä companies (TEUR) 673 533 511 608 609
Financial implications and other risks and opportunities due to climate change (GRI 201-2)
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.
Defined benefit plan obligations and other retirement plans (GRI 201-3)
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 21. Pension obligations.
Financial assistance received from government (GRI 201-4)
Subsidies received (TEUR) 2017 2016 2015 2014 2013
9 891 8 343 9 669 11 486 6 331
The value of the subsidies received in 2017 was EUR 9 891 thousand and they were among others related to R&D projects. The most contributing countries in 2017 were China, Finland, Spain, and Norway.
Market presence
Ratios of standard entry level wage by gender compared to local minimum wage (GRI 202-1)
Wärtsilä applies and follows local employment legislation in all countries, and respects 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. While laws and regulations determine the minimum level, the actual salaries often exceed these levels. A total compensation package for employees in each country is in line with the corporate rewarding guidelines, local market practices, and labour agreements. The base salary is set to meet market conditions, the demands of the job, and individual competence and performance.
Proportion of senior management hired from the local community (GRI 202-2)
Wärtsilä always publishes all open vacancies internally, thus ensuring an 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 positions. Senior management consists of global business and corporate management and local company management positions. Globally, 69% of Wärtsilä’s senior management is locally hired, in other words from the same country as the Wärtsilä subsidiary they work for.

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