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Targets

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Financial targets

 

Net sales

Target

Wärtsilä's target is to grow faster than global GDP.

Development

In 2018, net sales increased by 5% to EUR 5,174 million.

Profitability

Target

Wärtsilä's operating profit margin (EBIT%) target is 14% at the peak of the cycle. At the trough of the cycle, the target is to keep the operating profit margin above 10%.

Development

In 2018, the comparable operating result was EUR 577 million, which represents 11.2% of net sales.

Capital structure

Target

Wärtsilä's target is to maintain gearing below 0.50.

Development

In 2018, gearing was 0.14.

Dividend

Target

Wärtsilä's target is to pay a dividend of at least 50% of earnings over the cycle.

Development

The Board of Directors proposes that a dividend of EUR 0.48 per share be paid for the financial year 2018, which represents 73.7% of operational earnings.

Sustainability targets

Sustainable power systems

Target

Contribute to the development of an affordable, reliable, sustainable and modern power system worldwide.

Schedule: 2020

Development

In 2018, Wärtsilä announced its energy vision of leading the energy market’s transition towards a 100% renewable energy future. Some 2860 MWs of new modern, highly efficient, and flexible gas and liquid fired Smart Power Generation plants were sold during the year. Wärtsilä also released several innovative solutions, including the standardised energy storage solution GridSolv, Wärtsilä Hybrid Solar a hybrid solar PV and storage solution, and the latest generation of Wärtsilä’s advanced energy management software platform GEMS 6.

Small-medium scale LNG solutions

Target

Establish Wärtsilä solutions as an important link in the global LNG value chain. This develops opportunities, and builds the infrastructure for clean-burning LNG to replace liquid fuels.

Schedule: 2020

Development

In 2018, Wärtsilä had three LNG terminal projects in Finland. A ground-breaking ceremony for the new Hamina LNG terminal was held, and the tank slip forming and lifting of the roof were completed. At the Tornio Manga LNG Terminal, most of the performance tests were completed, and availability testing was started. At Raahe, the installation and commissioning work was completed, and the terminal was handed over to the customer.

Solar and hybrid solutions

Target

Solar and solar hybrid power plants to provide cleaner energy and fuel savings. Delivery of 200 MW solar power by the end of 2018.

Schedule: 2018

Development

During 2018, Wärtsilä delivered a 15 MWp solar hybrid power plant to Essakane Solar SAS in Burkina Faso, reducing annual CO2 emissions by 18,500 tons. In addition, under construction was a 52 MWp solar photovoltaic (PV) power plant at AM Solar BV/ Jordan. Altogether, 163 MWp worth of deals were announced during the review period 2017-2018.

Climate change

Target

By 2020, the aim is to reduce greenhouse gas (GHG) emissions from gas engines by 15% from 2015.

Schedule: 2020

Development

During 2018, Wärtsilä released its Wärtsilä 31SG gas engine to the market, and was able to reduce greenhouse gas emissions from gas engines by 8% from the baseline year.

Decarbonisation of transport

Target

Contribute to the development of more sustainable transportation through gas based and other technologies.

Schedule: 2020

Development

In 2018, Wärtsilä inaugurated the world’s first real-scale hybrid centre in Trieste (Italy), successfully tested the world’s first automated dock-to-dock solution, and launched important new solutions. These included the Skylight 3.0 for fleet performance monitoring, and the Wärtsilä 14, the first Wärtsilä-branded high-speed engine. In addition, Wärtsilä presented its end to end concept to optimise vessel speed and trim based on weather conditions, traffic, and berth availability at ports.

Climate change

Target

Reduce more than 300,000 tons of CO2 annually from vessels with the help of Eniram solutions.

Schedule: 2020

Development

The estimated reduction in CO2 emissions in 2018 was approximately 197,000 tons. This was a 13% increase in savings compared to the previous year.

Energy savings

Target

Reduce energy consumption by at least 7% in terms of absolute consumption (GWh) from 2015 levels by 2025.

Schedule: 2025

Development

By the end of 2018, energy savings of 2.9 GWh were achieved, representing 9.8% of the final target.

Ethical behavior

Target

Ensure commitment to the Code of Conduct throughout the organisation (Code of Conduct training coverage to be 100%).

Schedule: 2020

Development

Training records are continuously monitored. At the end of 2018, the Code of Conduct training programme coverage was 89.8% of all employees.

Occupational safety

Target

Reach the long-term goal of zero injuries.

Schedule: 2020

Development

In 2018, the corporate lost-time injury frequency rate was 2.50, which was 1% higher than in 2017 and above the internal target for the year (2.3.). However, Wärtsilä managed to increase the focus on proactive measures, and near miss/hazard reporting increased by 19% compared to 2017. By the end of the year, 3,200 Wärtsilä leaders had completed a “Leader in Safety, Leader in Business” safety workshop.

Climate change

Target

Prepare an analysis of the impact of the Paris Climate Change Agreement on Wärtsilä.

Schedule: 2018

Development

During 2018, Wärtsilä continuously monitored the proceedings of climate negotiations covering both the marine and energy sectors. In addition, the preparation of a technology strategy programme covering solutions for reducing greenhouse gas emissions was initiated.

Well being at work - careers

Target

Establish a balance between external and internal recruitments, with more than 50% of the open vacancies filled from the internal applicant pool, including promotions and lateral moves.

Schedule: 2020

Development

In 2018, 40% of all open vacancies were filled through internal selections for job levels 3 and up, and 60% through external selections.

Personnel development

Target

Complete 100% coverage for development discussions.

Schedule: 2020

Development

By the end of 2018, altogether 96.1% of the company’s employees had completed development discussions.

Diversity

Target

Increase the share of female employees to 20%.

Schedule: 2020

Development

In 2018, the share of female employees was 17%.

Supplier lifecycle management

Target

Risk-based supplier assessment and management process in use by 2018:

  • Phase I: new suppliers by 2017
  • Phase II: existing suppliers by 2018

Schedule: 2018

Development

The new risk-based Supply Relationship Management Tool was taken into use for new suppliers during 2018. The tool will be taken into use for existing suppliers in 2019. All existing suppliers are required to submit a self-assessment by the end of 2020.

Supplier monitoring

Target

Achieve the following rating coverage for suppliers:

  • 96% of direct global supplier spend rated
  • 70% of indirect supplier spend rated
  • 75% of local supplier spend rated

Schedule: 2020

Development

In 2018, Wärtsilä achieved its rating coverage targets. The rating coverage of direct global supplier spend was 97%, 77% of indirect supplier spend and 82% of local supplier spend. For the year 2018, the supplier rating target level for local suppliers was raised to 80% from the original 75%. Nevertheless, this target was also achieved.

Related pages

Wärtsilä's prospects

Five years in figures

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