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Wärtsilä's objective is to achieve profitable growth and create long-term value for our shareholders and society at large. Achieving this depends on our ability to satisfy the expectations of multiple stakeholders. 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, as well as contributing to the well-being of the local communities in which Wärtsilä operates. 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 2019 2018 2017* 2016 2015
Customers
Net sales 5 170 5 174 4 911 4 801 5 029
Suppliers
Cost of goods, materials, and services purchased 3 368 3 327 3 024 2 969 3 136
Value added 1 802 1 847 1 888 1 831 1 893
Distribution of value added
Distributed to stakeholders 1 404 1 615 1 651 1 593 1 555
Employees
Wages and salaries 1 028 954 1000 939 935
Public sector
Taxes and social dues 329 336 331 343 349
Creditors
Net financial items -47 -40 -47 -53 -34
Shareholder
Dividends 284 284 272 256 237
Communities
Donations given 1 1 1 2 1
For business development 114 232 237 238 338
*Restated due to IFRS 15
2019 2018 2017* 2016 2015
Customers
Net sales (MEUR) 5 170 5 174 4 911 4 801 5 029
Net sales by market area (MEUR)
Europe 1 690 1 485 1 526 1 581 1 566
Asia 1 968 1 867 1 933 1 774 2 051
Americas 1 098 1 245 1 132 1 039 1 006
Africa 222 283 221 313 329
Other 192 294 100 94 78
Suppliers
Cost of goods, materials, and services purchased (MEUR) 3 368 3 327 3 024 2 969 3 136
Employees
Salaries and wages (MEUR) 1 028 954 1000 939 935
Salaries and wages by market area (MEUR)
Europe 719 643 689 650 632
Asia 145 150 156 153 163
Americas 134 134 130 110 112
Africa 22 20 18 19 21
Other 8 7 7 7 8
Net sales/employee (TEUR) 271 274 275 262 271
Public sector
Taxes and social dues (MEUR) 329 336 331 343 349
Taxes and social costs by market area (MEUR)
Europe 223 252 236 246 246
Asia 47 38 44 45 50
Americas 43 33 38 47 44
Africa 19 10 12 5 6
Other -2 4 1 0 2
Subsidies received (TEUR) 8 101 7 085 9 891 8 343 9 669
Net financial items (MEUR) -47 -40 -47 -53 -34
Community
Donations given, Board of Directors (TEUR) 130 110 110 1365 110
Donations given, Wärtsilä companies (TEUR) 383 627 673 533 511
*Restated due to IFRS 15
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 chapter under the Risks and risk management section.
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, Great Britain 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 25. Pension obligations.
Financial assistance received from government (GRI 201-4)
Subsidies received (TEUR) 2019 2018 2017 2016 2015
8 101 7 085 9 891 8 343 9 669
The value of the subsidies received in 2019 was EUR 8 101 thousand and they were among others related to R&D projects. The most contributing countries in 2019 were Finland, Norway and Spain.
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, 90% 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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