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  • 2019

  • Interim Report

    Q1

    (25.4.2019)

  • Half Year Financial Report

    2019

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    Q3

    2019

  • Financial Statements Bulletin

    2019

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Wärtsilä's aim is to provide the best value and service to its customers by continuously developing its competences and way of working. The strategic goal of Wärtsilä's social responsibility and people strategy is to bring the business strategy alive by developing Wärtsilä's organisation and competences to meet the evolving business needs.

The aim is to have energetic, competent, and motivated personnel with exciting and meaningful jobs and career opportunities led by excellent leaders. Good performance is recognised and diversity respected. By applying high standards of occupational health and safety, Wärtsilä strives to offer a hazard-free workplace to its employees, contractors, and others working in different parts of the corporation.

Good corporate citizenship is accomplished through active co-operation, open communication, and good relationships with stakeholders. Wärtsilä's operations and relations with its stakeholders are based on the company's Code of Conduct, with which each Wärtsilä company and individual is required to comply.

Significant changes to the organization and its supply chain in 2017 (GRI 102-10)
In July Wärtsilä completed the acquisition of Greensmith Energy Management Systems Inc., a market leader in intelligent energy storage technology and solutions. The acquisition will enable Wärtsilä to expand its footprint in the energy storage market and position itself as a leading global energy systems integrator. The US-based Greensmith employs over 40 people.

In October, Wärtsilä reached an agreement to acquire Puregas Solutions, a provider of turnkey biogas upgrading solutions. The acquisition provides Wärtsilä with added equipment and expertise in biogas upgrading, and will complement well the company’s existing position in the biogas liquefaction market. The Sweden based company currently has approximately 40 employees.

Also in October, Wärtsilä reached an agreement to acquire Guidance Marine Limited, a privately owned company with offices in the UK, Singapore and the USA. The acquisition enhances Wärtsilä’s capabilities in the area of situational awareness and near-field measurement, both essential for more intelligent vessel navigation. Guidance Marine employs more than 50 people worldwide.

In December 2017, Wärtsilä announced the opening of CSSC Wartsila Electrical & Automation Co Ltd (CWE&A), a joint venture between Wärtsilä and China State Shipbuilding Corporation (CSSC) that will focus on the growing Chinese electrical & automation market.

Also in December, Wärtsilä strengthened its service portfolio by acquiring Trident B.V., a Netherland based company specialised in providing underwater ship maintenance, inspection, and repair services. The acquisition supports Wärtsilä's goal to become the first operator with a global underwater services footprint. The acquisition is estimated to be closed in January 2018. Trident employs approximately 30 people.
Employment
Information on employees and other workers in 2017 (GRI 102-8, GRI 401-1)
In addition to direct employment, Wärtsilä employed also indirectly an external workforce totalling 3 234 man-years in subcontracting at its factories and units. The units located in Finland had a total personnel of 3 056 employees.

All in all, 1 634 employees left and 2 104 joined Wärtsilä globally during 2017 for different reasons. Wärtsilä had 18 065 employees at the end of 2017.
Personnel 2017 2016 2015 2014 2013
Number of employees at the end of the year 18 065 18 011 18 856 17 717 18 663
Personnel by business
Services 10 624 10 567 10 592 10 692 10 785
Marine Solutions 5 845 6 074 6 847 5 603 3 612
Energy Solutions 1 038 903 959 978 1 053
PowerTech * * * * 2 449
Other 559 467 459 444 764
Personnel by market area
Europe 10 463 10 399 10 893 9 633 10 507
Asia 4 890 4 992 5 297 5 477 5 628
Americas 1 960 1 919 1 917 1 840 1 876
Africa 665 612 656 676 563
Other 88 89 92 91 89
Average age of employees 41.5 41.0 41.0 40.2 39.7
Permanent employees (%) 92 89 89 88 88
Temporary employees (%) 8 11 11 12 12
Full-time employees (%) 98 98 98 98 97
Part-time employees (%) 2 2 2 2 3
Employee turnover (resigned) (%) 5.3 5.3 5.2 6.2 7.7
Net employment creation -213 -840 -755 -283 -477
* PowerTech was merged into Marine Solutions in 2014
Number of employees by employment contract and gender in 2017 Permanent Temporary
Total 16 566 1 498
Male 13 996 1 243
Female 2 570 255
Number of employees by employment contract and region in 2017 Permanent Temporary
Europe 10 100 363
Asia 4 020 872
America 1 919 40
Other 566 185
Permanent employees by employment contract type and gender in 2017 Full-time Part-time
Total 16 250 320
Male 13 886 216
Female 2 360 104
New employee hires in 2017 Employees Rate (%)
Total 2 104 11.6
Gender
Male 1 688 11.1
Female 416 14.4
Age group
< 30 years 798 31.7
30-50 1 120 9.9
> 50 years 186 4.4
Market area
Europe 1 070 10.2
Asia 569 11.6
Americas 346 17.7
Other 118 15.7
Employee turnover (resigned) in 2017 Employees Rate (%)
Total 879 5.3
Gender
Male 719 5.1
Female 160 6.2
Age group
< 30 years 163 10.7
30-50 521 5.0
> 50 years 195 4.8
Market area
Europe 484 4.8
Asia 254 6.3
Americas 106 5.5
Other 35 6.2
Benefits provided to full-time employees that are not provided to temporary or part-time employees (GRI 401-2)
In general, temporary and part time employees are offered the same benefits as permanent employees. In some countries, eligibility is linked to the number of months or years of service – such differences being typically based on collective agreements according to local legislation.
Labour / management relations
Minimum notice periods regarding operational changes (GRI 402-1)
Wärtsilä way of working concerning minimum notice periods is described in the Employee Practices section.
Occupational health and safety
Workers representation in formal joint management–worker health and safety committees (GRI 403-1)
Wärtsilä companies apply occupational health and safety programmes as required by local legislation. These are normally developed by occupational health and safety committees consisting of representatives from both management and personnel. Altogether 78% of Wärtsilä companies have an occupational health and safety committee covering in total 92% of Wärtsilä’s employees.
Type of injury and rates of injuries, occupational diseases, lost days and absenteeism, and total number of work-related fatalities (GRI 403-2)
The positive trend in reducing lost time injuries has continued, with a lost time injury frequency 4% below that of the previous year. There has been a continual reduction in the frequency of lost time injuries since 2008.

However, Wärtsilä regrets to report a contractor fatality at a power plant construction site in India. A contractor’s employee was walking ahead of a mobile crane holding a transported steel frame when he fell and was run over by the crane. The employee lost his life in this accident.
Injuries 2017 2016 2015 2014 2013
Total number of injuries 446 439 461 510 730
Number of lost time injuries resulting in at least
1 day absence, total 		138 147 157 168 199
Number of lost time injuries – work-related 88 95 104 130 162
Number of lost time injuries – commuting 50 52 53 38 37
Lost time injuries / million working hours 2.5 2.6 2.8 3.5 4.4
Absence rate
Absence due to illness (% of total working hours) 2.0 2.2 1.9 2.0 2.1
Absence due to lost time injury
(% of total working hours) 		0.1 0.1 0.1 0.1 0.1
Absence due to occupational diseases
(% of total working hours) 		0.0 0.0 0.0 0.0 0.0
Fatalities
Number of fatalities, total 1 1 1 5 1
Employees 0 0 1 3 1
Contractors 1 1 0 2 0
Workers with high incidence or high risk of diseases related to their occupation (GRI 403-3)
Wärtsilä employees constantly work close to running engines while conducting overhaul or testing activities, which exposes them to high levels of noise. Wärtsilä has occupational safety and health programmes in place to prevent hearing loss, including providing hearing protectors to those employees at risk of hearing loss or impairment. In 2017, there were in total 15 cases of occupational disease diagnosed, which is equivalent to 0.4 cases / million worked hours.
Training and education
Average hours of training per year per employee (GRI 404-1)
Wärtsilä's average number of training days in 2017 for male employees was 2.3 and for female employees 2.0.
Training days/employee 2017 2016 2015 2014 2013
All employees 2.2 3.0 3.0 4.2 4.1
Managers and superiors 3.5 3.7 3.5 5.1 4.6
Other white-collar employees 3.0 2.9 2.9 3.5 4.1
Blue-collar employees 2.0 3.0 3.1 4.4 3.6
Programs for upgrading employee skills and transition assistance programs (GRI 404-2)
Wärtsilä programmes for skills management is described in the People Management section. Wärtsilä offers a wide variety of internal training and learning opportunities for its employees, covering more than 20 training categories. These include topics such as engine technology, health and safety, language and culture, project management, environment, security, and leadership.
Percentage of employees receiving regular performance and career development reviews (GRI 404-3)
Development discussions held annually 2017 2016 2015 2014 2013
Coverage % 96 96 92 92 91
Diversity and Equal opportunity
Diversity of governance bodies and employees (GRI 405-1)
A diverse workforce generates higher profits, better complex problem-solving skills, and access to a larger talent pool. Wärtsilä’s Diversity Initiative began in 2012 and is aimed at driving an inclusive corporate culture at all levels to meet both global and local requirements. By investing in diversity and supporting employees of varied gender, age, personality, and educational background, Wärtsilä becomes an even more attractive employer and a more valued business partner for its customers.
Gender diversity 2017 2016 2015 2014 2013
Male/female ratio (%) 84/16 84/16 85/15 86/14 85/15
Executive positions globally: male/female ratio (%) 89/11 89/11 89/11 90/10 90/10
Regional diversity
Number of nationalities 136 134 131 122 120
Number of employees per age group in 2017 Employees Ratio (%)
< 30 years 2 517 13.90
30-50 11 340 63
> 50 years 4 209 23
Percentage of members of Board of Management (BoM) and Board of Directors (BoD) per age group in 2017 BoM (%) BoD (%)
< 30 years 0 0
30-50 22 25
> 50 years 78 75
Percentage of members of Board of Management (BoM) and Board of Directors (BoD) per gender in 2017 BoM (%) BoD (%)
Female 11 25
Male 89 75
Customer satisfaction
Results of surveys measuring customer satisfaction (GRI 102-43)
In order to put the needs of customers always first, Wärtsilä carefully listens and acts upon customer feedback, at both operative and management levels. Wärtsilä places great emphasis on earning long-term customer trust through keeping its promises. While challenges may arise at any time in this business, relationships are strengthened by focusing on customer satisfaction and loyalty.

Customer feedback on project deliveries and the operation of their installations, is welcomed. To know what works and where to improve, as well as understanding the customers’ operational environments, is critical in developing the company’s products and services. To ensure customer satisfaction, their feedback is systematically reviewed and the needed actions are taken. In addition, Wärtsilä collects feedback during different events, activities, and interactions with its customers.
Customer satisfaction 2017 2016 2015
Marine Solutions 76% 76% 75%
Services 87% 90% 89%
Energy Solutions 95% 97% 95%
Sample 4 875 4 899 4 312
Customer satisfaction percentage is based on one question: Are you satisfied with Wärtsilä overall performance? Answering options: Satisfied, Neutral or Dissatisfied. Percentage shows Satisfied as part of total answered.

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