Wärtsilä q1 2024 Interim Report
Wärtsilä q1 2024 Interim Report
Wärtsilä q1 2024 Interim Report
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Wärtsilä Corporation Interim Report January–March 2024
Key figures
MEUR 1–3/2024 1–3/2023 Change 2023
Order intake 1,924 1,739 11% 7,070
of which services 949 889 7% 3,519
of which equipment 975 850 15% 3,550
Order book, end of period 7,294 6,153 19% 6,694
Net sales 1,321 1,465 -10% 6,015
of which services 833 736 13% 3,148
of which equipment 489 729 -33% 2,867
Book-to-bill 1.46 1.19 1.18
Comparable adjusted EBITA* 137 93 47% 518
% of net sales 10.4 6.4 8.6
Comparable operating result 132 88 50% 497
% of net sales 10.0 6.0 8.3
Operating result 127 92 38% 402
% of net sales 9.6 6.3 6.7
Result before taxes 118 84 41% 364
Basic earnings/share, EUR 0.14 0.09 0.44
Cash flow from operating activities 258 145 822
Net interest-bearing debt, end of period -79 477 35
Gearing -0.04 0.24 0.02
Solvency, % 34.8 33.4 37.0
*Comparable adjusted EBITA excludes items affecting comparability and purchase price allocation amortisation.
Wärtsilä presents certain alternative performance measures in accordance with the guidance issued by the European Securities and Markets
Authority (ESMA). The definitions of these alternative performance measures are presented in the Calculations of financial ratios section.
Wärtsilä's prospects
Marine Energy
Wärtsilä expects the demand environment for the next 12 Wärtsilä expects the demand environment for the next 12
months (Q2/2024-Q1/2025) to be better than that of the months (Q2/2024-Q1/2025) to be better than that of the
comparison period. comparison period.
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Wärtsilä Corporation Interim Report January–March 2024
Håkan Agnevall, President & CEO: Becoming a more focused and profitable company
“Wärtsilä continued to make good progress during the first decreased in both Energy and Marine, with the largest
quarter of 2024. Our profitability improved, cash flow from decrease in Energy Storage & Optimisation (ES&O).
operations increased and our order book ended up at a new
all-time high driven by a continued strong order intake. We As we have communicated before, the Energy equipment
also made good progress in services, with service net sales business is lumpy by nature, which means that order intake,
growing by double-digits in both Marine and Energy. but also revenue recognition, can vary significantly from one
quarter to another. In 2024, equipment deliveries and revenue
The headwinds for the global economy continued during the recognition in Energy will be tilted towards the second half of
quarter. In the energy market, the current macroeconomic the year, both in engine power plants and ES&O. In Marine,
situation caused uncertainty and delayed decision-making. On the lead times from equipment order intake to net sales are
the positive side, the global energy transition advances currently slightly longer, due to remaining constraints in
steadily. The move to renewables, combined with significant shipyard capacity.
volumes of traditional inflexible assets nearing retirement, has
resulted in a need for more flexibility in energy systems The comparable operating result increased by 50% to EUR 132
around the world. This creates ample growth opportunities for million with a comparable operating margin of 10.0%. The
Wärtsilä in the mid to long term. In March, we signed a improved margin was supported by a more favourable mix
contract continuing our successful collaboration with our between equipment and services, but negatively impacted by
customer Lower Colorado River Authority (LCRA) in Texas, USA. lower operating leverage during the quarter. The financial
We will provide another ten Wärtsilä 50SG engines to LCRA, performance also improved in our businesses to be divested
generating an output of approximately 190 MW. The fast- reported under Portfolio Business. Cash flow from operating
starting Wärtsilä engines will provide dispatchable power to activities significantly improved to EUR 258 million. The
balance the increasing amount of intermittent renewables improvement was driven by a better operating result, but also
introduced into the system. by the very good level of received customer payments related
to the strong order intake, and strong service sales generating
In the marine market, trade flows around the world have been a good inflow of cash.
impacted by the conflicts in the Middle East, the attacks on
ships in the Red Sea, and the drought affecting the Panama In October of 2023, we announced a strategic review of ES&O
Canal, which have led to longer average shipping distances, to accelerate its profitable growth in a way that benefits
increased transportation costs, and delays to global supply customers, employees, and value creation for Wärtsilä
chains. Driven by the increasing demand for ship capacity and shareholders. This review is still ongoing.
decarbonisation-related ship renewal, investments in new
We have continued our significant investments in R&D to
ships were clearly higher than in the first quarter of 2023.
develop sustainable and future-proof technologies. During the
Higher capacity utilisation and a continued increase in
quarter, we launched Quantum2, a fully integrated high-
shipyard capacity supported the growth in ship delivery
capacity battery energy-storage system designed and
volumes. The market sentiment continued to develop
optimised for global large-scale deployment. The high energy
favourably for Wärtsilä’s key segments, especially on the
density of Quantum2 means fewer units are needed onsite. In
passenger side, with good development in passenger volumes
February, it was announced that Wärtsilä will be leading a five-
creating demand for new vessels in both cruise and ferry. The
year collaboration of more than 200 Finnish companies,
uptake of alternative fuels remained at a healthy level. From
industrial organisations, research institutes, and universities.
January 1st, shipping has been included in the EU ETS, an
The partners in this “Wide & Intelligent Sustainable Energy”
emissions trading system that obliges shipping companies
(WISE) project will together develop autonomous zero-
operating in the EU to purchase and use emission allowances
emission balancing solutions for the energy transition by
based on their CO2 or CO2-equivalent emissions. This
utilising data analytics and artificial intelligence, strengthening
incentivises shipping companies to reduce emissions and
the Finnish energy sector to become a world-leader in energy
modernise fleets, either through renewals or retrofits. As an
innovation.
established technology leader, and with a wide range of
technologies and specialised services Wärtsilä is well We expect the demand environment for the coming 12 months
positioned to support customers on their decarbonisation to be better than the comparison period in both Marine and
journeys. Energy. We are on a clear path to reach our financial targets,
and we remain very well positioned for the future. We will
From the beginning of 2024, we simplified our organisation
continue to execute our strategy to make Wärtsilä a stronger,
and reporting structure to two segments, Marine and Energy,
more focused, and more profitable company. 2024 is a special
both focused on decarbonising their respective industries.
year for Wärtsilä, as it marks our 190th anniversary. Our two
Portfolio Business will continue to be reported as other
centuries have been characterised by continually transforming
business activities. In the first quarter, Wärtsilä’s order intake
ourselves and the industries we have operated in, supported
grew organically at 17% supported by good equipment order
by the innovative spirit of our people. The transformation that
intake in Marine and engine power plants, as well as continued
we are driving today, towards carbon-neutral shipping and to a
growth in service. Net sales decreased organically by 6%. While
100% renewable energy future, is probably the most critical we
we saw growth in service net sales, equipment net sales
have faced in our long history, as it is vital for ensuring the
sustainable societies of tomorrow.”
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Wärtsilä Corporation Interim Report January–March 2024
Development in January–March
Order intake increased by 11%. Service order intake increased The comparable operating result totalled EUR 132 million
by 7%, driven by growth in Marine. Service order intake in (88) or 10.0% of net sales (6.0). Comparable operating result
Energy decreased, mainly due to the comparison period was supported by increases in Marine, Energy and Portfolio
including a sizeable upgrade project. Equipment order intake Business. The operating result amounted to EUR 127 million
increased by 15% driven by growth in Marine and engine (92) or 9.6% of net sales (6.3). Items affecting comparability
power plants. amounted to EUR -5 million (4) and were mostly related to the
restructuring of engine manufacturing.
The order book at the end of the period increased by 19%.
Wärtsilä’s current order book for 2024 deliveries is EUR 3,864 Financial items amounted to EUR -9 million (-8). Net interest
million (3,325). totalled EUR 0 million (-4). The result before taxes amounted to
EUR 118 million (84). Taxes amounted to EUR -32 million,
Net sales decreased by 10%. Service net sales increased by implying an effective tax rate of 27.4%. The result for the
13%, driven by growth in Marine and Energy. Equipment net financial period amounted to EUR 86 million (61). Basic
sales decreased by 33%, with lower equipment net sales in earnings per share totalled 0.14 euro (0.09). Return on
Energy and Marine, mainly related to the periodisation of investments (ROI) was 16.0% (8.1), while the return on equity
deliveries between quarters. The largest decrease was in (ROE) was 14.3% (7.1).
Energy Storage & Optimisation. Of Wärtsilä’s net sales, 52%
was EUR denominated and 31% USD denominated, with the
remainder being split between several currencies.
Quarterly development
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Wärtsilä Corporation Interim Report January–March 2024
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Wärtsilä Corporation Interim Report January–March 2024
Operating environment
General macro environment demand for service was supported by the continued growth in
active fleet capacity, as well as interest in efficiency
Global GDP growth estimated to be restrained improvements to comply with regulations and to mitigate cost
While interest rates appear to have plateaued ahead of a inflation.
potential moderate decline, inflation and higher interest rates
continue to impact the global economy. During the first In the ferry sector, the interest for new ship capacity rose
quarter of 2024, the global economy showed some signs of significantly compared to Q1/2023, as ferry operators
modest improvement, attributable to the economic progressed with their fleet modernisation programmes. The
performance of the USA and some emerging and developing higher activity was supported by the aging fleet, a gradual
economies, plus the ongoing fiscal stimulus in China. continued recovery in traffic volumes and operator earnings.
The demand for service was helped seasonally by the need to
Marine have vessels in good operating condition for the coming high
season.
Appetite for new ships increased
The trade flows around the world have been impacted by the In the offshore sector, there is growing market optimism, as
conflicts in the Middle East, the attacks on ships in the Red Sea, high energy prices encourage more investments in offshore
and the drought affecting the Panama Canal, which have led to exploration activity. This has increased the demand for drilling
increased transportation costs and caused delays to global units and support vessels, resulting in further asset
supply chains. This impact on trade flows has resulted in reactivations and interest in newbuild units. However,
longer average shipping distances, which has supported the newbuild contracting remains limited due to high prices, the
demand for shipping capacity. The recovery in passenger cost and availability of finance, and the lack of yard capacity.
traffic volumes continued, and demand, particularly in cruise The demand for new offshore wind vessel capacity was
vacations, remained strong. supported by the continued growth in wind farm capacity
investments, although high inflation has hindered final
Driven by the increasing demand for ship capacity, the solid
investment decisions for some projects. The utilisation of
average earnings across cargo segments, the low orderbook
existing vessels remained strong, especially outside China, due
mainly in bulk carrier and tanker segments, and continued
to the high level of turbine installations. The demand for
fleet renewal, investments in new ships were clearly higher
service across offshore subsegments was driven by increases
than in Q1/2023. In total, 411 new ship contracts were signed
in utilisation and day rates throughout the offshore fleet.
in the first quarter of the year, compared to the 255 contracts
signed in Q1/2023. In the LNG carrier sector, the demand for newbuild capacity
continued to be driven by further investments in expanding
Continued increase in shipyard capacity especially in China and
LNG liquefaction capacity, especially for projects linked to
South Korea supported the growth in ship delivery volumes
Qatar. However, the demand for LNG was negatively affected
compared to Q1/2023. Newbuild ship prices continued to
by milder weather and higher storage levels, leading to lower
increase, indicating a continued shortage of yard capacity.
charter rates for the LNG carriers compared to Q1/2023 but
The uptake of alternative fuels remained at a healthy level with overall the LNG carrier market remains fairly balanced. The
118 orders reported in Q1/2024, accounting for 29% (29%) of demand for services continued to be driven by growth in the
all contracted vessels and 45% (45%) of vessel capacity. existing operational fleet.
Liquified natural gas (LNG) and methanol are still the two most
In the containership sector, the contracting of new ships
preferred alternative fuel options.
remained more limited following the record ordering cycle
From January 1st, shipping has been included in the EU ETS, an over the past years and the challenging earnings outlook due
emissions trading system that obliges shipping companies to a worsening supply-demand balance. The attacks on ships
operating in the EU to purchase and use emission allowances in the Red Sea region have resulted in major rerouting activity,
based on their CO2- or CO2-equivalent emissions. This adds providing temporary support to the sector supply-demand
costs to shipping companies operating in the region or calling balance. The growth in active fleet capacity, and the impact of
at EU ports, and incentivises fleet modernisation either the Red Sea conflict on earnings, supported the demand for
through fleet renewals or retrofits. service.
Market sentiment turns more positive for Wärtsilä’s key Across all the above sectors, the growing pressure to
segments decarbonise operations supported the demand for both
In the cruise sector, market sentiment was increasingly newbuilds and service. This has resulted in investments in
positive due to the strong demand for cruises across regions. additional fleet capacity, direct fleet replacements, efficiency
The outlook for newbuilds is encouraging, with the first orders upgrades or fuel conversions, and maintenance activities to
for large cruise ships announced after a slow four years. The keep the existing fleet compliant and competitive.
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Wärtsilä Corporation Interim Report January–March 2024
Energy While the size of the thermal power market is stable, increased
competition in the market has led to pressure on new build
The uncertain energy market environment continued prices. The macroeconomic environment has made project
despite some relief during the quarter financing more difficult, with inflation and higher interest rates
Constraints in global and energy-related supply chains have delaying decision-making.
continued to ease. However, the macroeconomic development
caused uncertainty within the overall investment environment, In battery energy storage, the demand is closely linked to
delaying decision-making. the increasing share of intermittent renewables in the energy
system, which has continued fast progress. According to S&P
In the first quarter of 2024, global natural gas prices continued Global, demand for utility-scale battery storage was 79 GWh in
to decline towards pre-2021 levels, rendered possible by a 2023, more than double the amount in 2022. Lithium prices
warm winter season, muted demand growth and increased were relatively stable in Q1/2024, after decreasing significantly
renewable generation. Commodity pricing overall has in the preceding 12 months. The IEA estimates 400 to 500 GWh
stabilized, although geopolitical uncertainty presents price and of stationary battery storage demand, including utility and
availability risks for some materials and products. small-scale applications, in 2030.
*Global orders include prime movers over 5 MW in size in up to 400 MW gas turbine plants and engine plants of all sizes. The gas turbine data is
gathered from the McCoy Power Report and is reported with a one quarter delay due to data availability. Engine data is collected from press
releases and Wärtsilä sales teams.
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Wärtsilä Corporation Interim Report January–March 2024
Sustainability
Sustainability at the core of Wärtsilä’s strategy Wärtsilä is conducting R&D and factory engine testing related
With a broad range of technologies and specialised services, to alternative fuels. The second test period with synthetic fuel
Wärtsilä is well positioned to support customers on their (eHFO) in Wärtsilä’s engine laboratory was completed
decarbonisation journey, as well as in preparing for new according to plan, the aim being to test the characteristics of
regulatory requirements. Wärtsilä’s R&D efforts continue to the eFuel and its potential impacts on, for example, engine
focus on the development of advanced environmental performance. To produce synthetic fuels, renewable hydrogen
technologies and solutions. Wärtsilä’s aim is to be able to and CO₂ are used. In addition, Wärtsilä is running weekly
provide a product portfolio ready for zero-carbon fuels by customer factory acceptance tests with methanol. An ethanol
2030, and the company is well on track towards the target. In
test run as a proof case that the needed technology is ready
addition to promoting the transition to carbon neutrality for its
and available, was also completed during the quarter.
customers, the company’s goal is to become carbon neutral in
its own operations by 2030. Wärtsilä is continuing preparations for the EU Corporate
Sustainability Reporting Directive (CSRD). Following the
Enhancing safety, diversity and wellbeing is also one of
materiality assessment conducted in 2023, the reporting
Wärtsilä’s long-term sustainability focus themes. Safety is a
content based on the European Sustainability Reporting
high priority for Wärtsilä, and the company is committed to
Standards (ESRS) was defined. As a next step, the sustainability
creating and maintaining a safe and healthy workplace for its
employees and partners. Creating an inclusive culture that reporting process and its alignment with the financial
drives engagement and performance is one of the priorities of reporting procedures will be reviewed.
the People Strategy. The company is committed to supporting Safety performance is closely monitored at Wärtsilä and the
the UN Global Compact and its ten principles with respect to
long-term goal is to reach zero injuries. In 2023, Wärtsilä
human rights, labour, the environment, and anti-corruption.
initiated a 4-year health and safety programme ‘Success
Sustainability performance and highlights from Q1/2024 Through Safety’. One of the focus areas of the programme is to
enhance employee safety. In the first quarter, Wärtsilä
As part of the future fuel R&D programme and developing
released an improved digital tool, Job Safety Analysis, for Field
concepts for utilising ammonia as an engine fuel, Wärtsilä
Service to support risk assessment when working at customer
introduced an Ammonia Fuel Supply System (AFSS) for ships
sites and on vessels. The goal is to enable more thorough risk
able to operate with ammonia fuel. In line with shipping’s
assessment in a simplified manner and utilise the latest
transition to decarbonised fuels, ammonia is widely seen as
Wärtsilä safety guidelines. In Q1, the corporate total
one of the most promising new fuel alternatives offering a
recordable injury frequency rate (TRIF) was 1.74 (2.53).
significant reduction in CO2 emissions and other air pollutants.
Wärtsilä above sector average in all relevant ESG indices and rankings
Wärtsilä’s ratings in the most relevant sustainable development indices and rankings:
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Wärtsilä Corporation Interim Report January–March 2024
Quarterly development
*Restated to reflect the redefined organisational structure as of 1 January 2024, as Exhaust Treatment and Shaft Line Solutions business units were moved
from Marine Systems to Marine Power, and Marine Power changed its name to Marine.
**Restated to reflect the redefined organisational change considering the integration of Voyage into Marine Power and moving part of the Voyage business
to the Portfolio Business (after the integration into a new business unit)
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Wärtsilä Corporation Interim Report January–March 2024
Quarterly development
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Wärtsilä Corporation Interim Report January–March 2024
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Wärtsilä Corporation Interim Report January–March 2024
Key figures
MEUR 1–3/2024 1-3/2023* Change 2023*
Order intake 234 252 -7% 768
of which services 61 65 -6% 209
of which equipment 173 187 -8% 559
Order book, end of period 1,252 1,177 6% 1,192
Net sales 162 151 7% 604
of which services 43 46 -6% 191
of which equipment 118 104 13% 413
Comparable operating result 1 -10 110% -34
% of net sales 0.6 -6.9 -5.7
Operating result 0 -10 104% -83
% of net sales 0.3 -6.8 -13.8
*Restated due to organisational changes
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Wärtsilä Corporation Interim Report January–March 2024
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Wärtsilä Corporation Interim Report January–March 2024
Additional information
Decisions taken by the Annual General Meeting
Wärtsilä’s Annual General Meeting was held on 7 March 2024
at Messukeskus, Helsinki. The Meeting approved the financial
statements for the year 2023, reviewed the Remuneration
Report 2023 for Governing Bodies, and discharged the
members of the Board of Directors and the company’s
President & CEO from liability for the financial year 2023.
Dividend distribution
The Annual General Meeting approved the Board of Directors’
proposal to pay a dividend of EUR 0.32 per share. The dividend
shall be paid in two instalments. The first instalment of EUR
0.16 per share was paid on 18 March 2024. The second
instalment of EUR 0.16 per share shall be paid on 18
September 2024.
Shares
In January–March, the number of shares traded on Nasdaq
Helsinki was 56,197,596 shares, equivalent to a turnover of
EUR 776 million. Wärtsilä’s shares are also traded on
alternative exchanges, including Turquoise, BATS, Chi-X and
CBOE DXE. The total trading volume on these alternative
exchanges amounted to 21,774,578 shares.
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Wärtsilä Corporation Interim Report January–March 2024
Use of estimates
Preparation of the financial statements in accordance with the For Wärtsilä, the most significant judgements, estimates, and
IFRS Accounting Standards requires management to make assumptions made by the management relate to, for example,
judgements, estimates, and assumptions that affect the revenue recognition, especially project estimates for long-term
valuation of the reported assets and liabilities, as well as other projects and agreements, impairment testing, valuation of
information, such as contingent assets and liabilities and the trade receivables, contract assets and inventories, determining
recognition of income and expenses in the statement of the length of lease terms, defined benefit pension obligations,
income. Although these continuously evaluated judgements, recognition of warranty provisions and provisions for litigation,
estimates, and assumptions are based on management’s past and uncertain tax positions. In addition, valuation of assets
experience and best knowledge of current events and actions, held for sale requires the use of estimates.
as well as expectations of future events, actual results may
differ from the estimates.
Organisational changes
As of 1 January 2024, business units Exhaust Treatment and The segment-related comparison figures for 2023 have been
Shaft Line Solutions have been transferred from Wärtsilä restated to reflect the current organisational structure. The
Marine Systems to Wärtsilä Marine Power, and business unit segment-related comparison figures for 2022 (available in
Gas Solutions has been transferred from Marine Systems to Quarterly figures) have not been restated accordingly, they
Wärtsilä Portfolio Business. Consequently, Wärtsilä Marine represent the organisational structure as it was at the end of
Systems no longer constitutes an organisational unit or a 2023.
reporting segment, and the name of Marine Power has been
changed to Marine.
Weighted average number of dilutive potential ordinary shares during the period
Unvested shares 302,228
Weighted average number of shares outstanding during the period to be used in the calculation of
diluted EPS 589,346,442
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Wärtsilä Corporation Interim Report January–March 2024
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Wärtsilä Corporation Interim Report January–March 2024
Attributable to:
equity holders of the parent company 85 55 258
non-controlling interests 1 6 12
86 61 269
Other comprehensive income for the reporting period, net of taxes -18 -36 -17
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Wärtsilä Corporation Interim Report January–March 2024
Current assets
Inventories 1,538 1,421 1,485
Other receivables 1,928 2,144 1,943
Cash and cash equivalents 872 439 819
Total current assets 4,337 4,004 4,247
Equity
Share capital 336 336 336
Other equity 1,770 1,672 1,888
Total equity attributable to equity holders of the parent company 2,106 2,008 2,225
Non-controlling interests 9 7 8
Total equity 2,115 2,014 2,232
Non-current liabilities
Lease liabilities 230 232 224
Other interest-bearing debt 476 413 515
Deferred tax liabilities 64 48 69
Other liabilities 323 251 318
Total non-current liabilities 1,093 943 1,126
Current liabilities
Lease liabilities 44 44 44
Other interest-bearing debt 46 233 76
Other liabilities 3,625 3,372 3,326
Total current liabilities 3,715 3,649 3,445
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Wärtsilä Corporation Interim Report January–March 2024
Change in cash and cash equivalents, increase (+)/decrease (-) 53 -20 375
Cash and cash equivalents at the beginning of the reporting period* 819 464 464
Exchange rate changes -1 -4 -19
Cash and cash equivalents at the end of the reporting period* 872 440 819
* Cash and cash equivalents include the cash and cash equivalents pertaining to assets held for sale.
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Wärtsilä Corporation Interim Report January–March 2024
Non-
controlling Total
Total equity attributable to equity holders of the parent company interests equity
Remea-
sure-
ments of
Transla- Fair defined
Share Share tion dif- value benefit Retained
MEUR capital premium ference reserve liabilities earnings
Equity on 1 January 2024 336 61 -188 31 -4 1,989 8 2,232
Total comprehensive income for
the reporting period -3 -14 -1 85 1 68
Transactions with equity
holders of the parent company
and non-controlling interests
Dividends paid -188 -188
Share-based payments 3 3
Equity on 31 March 2024 336 61 -191 17 -6 1,888 9 2,115
Non-
controlling Total
Total equity attributable to equity holders of the parent company interests equity
Remea-
sure-
ments of
Transla- Fair defined
Share Share tion dif- value benefit Retained
MEUR capital premium ference reserve liabilities earnings
Equity on 31 December 2022 336 61 -156 9 -5 1,889 12 2,146
Restatement due to IAS 12 1 1
Equity on 1 January 2023 336 61 -156 9 -5 1,891 12 2,148
Total comprehensive income for
the reporting period -28 -3 55 1 25
Other changes -5 -5
Transactions with equity
holders of the parent company
and non-controlling interests
Dividends paid -153 -154
Share-based payments 1 1
Equity on 31 March 2023 336 61 -183 6 -5 1,793 7 2,014
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Wärtsilä Corporation Interim Report January–March 2024
Segment information
Wärtsilä’s reportable segments are Marine and Energy. The segment related comparison figures for 2023 have been
Furthermore, Wärtsilä reports Portfolio Business as other restated to reflect the current organisational structure.
business activities.
Operating result
Marine 77 69 276
Energy 50 34 209
Portfolio Business 0 -10 -83
Total 127 92 402
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Wärtsilä Corporation Interim Report January–March 2024
Disaggregation of revenue
Revenue from contracts with customers is derived over time
and at a point in time from the following revenue types.
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Wärtsilä Corporation Interim Report January–March 2024
Over time
Projects 224 455 1,688
Long-term agreements 181 155 705
Total 405 610 2,393
Product sales consist of sales of spare parts and standard scale system or equipment deliveries which require
equipment, for which the revenue is recognised at a point in engineering, for example power plants and gas solutions
time when the control of the product has transferred to the construction contracts, the revenue is recognised over time.
customer, in general upon delivery of the goods. Revenue from tailor-made equipment delivery projects is
recognised at a point in time when the control of the
Goods and services -type of revenue involves short-term field equipment is transferred, in general upon delivery, and
service jobs, including the delivery of a combination of service revenue from service related projects, such as modernisation
and equipment. The revenue is recognised at a point in time and upgrade projects is recognised over time.
when the service is rendered.
Long-term agreements include long-term operating and
Projects are of both short- and long-term duration. Depending maintenance agreements for which the revenue is recognised
on the contract terms and the duration of the project, the over time.
revenue is recognised at a point in time or over time. In large-
Due to the new organisational structure, Wärtsilä performed ended 31 March 2024. Going forward, impairment testing of
an intermediate impairment testing of goodwill during the first goodwill is only conducted on Marine, Energy and Portfolio
quarter of 2024 for cash generating unit (CGU) Marine Business level, as Marine Systems no longer constitutes an
Systems. As a result of the impairment test, no impairment organisational unit nor a reportable segment.
loss for the CGU was recognised for the reporting period
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Wärtsilä Corporation Interim Report January–March 2024
Leases
Lease liabilities
Carrying amount on 1 January 268 266 266
Changes in exchange rates 0 -2 -2
Additions 23 24 56
Interest expenses -1 2
Payments -13 -12 -48
Other adjustments -2 -6
Carrying amount at the end of the reporting period 275 276 268
Interest-bearing receivables -4 -4 -4
Cash and cash equivalents -872 -439 -819
Cash and cash equivalents pertaining to assets held for sale 0 -1
Total interest-bearing assets -876 -444 -823
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Wärtsilä Corporation Interim Report January–March 2024
Financial ratios
The financial ratios include assets and liabilities pertaining to assets held for sale.
Personnel
Contingent liabilities
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Wärtsilä Corporation Interim Report January–March 2024
Fair values
Fair value measurements at the end of the reporting period:
Financial liabilities
Interest-bearing debt, non-current (level 2) 706 701
Derivatives (level 2) 43 43
Quarterly figures
Net sales
Marine 708 759 671 701 669
Marine Power 589 484 527 477
Marine Systems 207 159 166 148
Energy 452 720 613 633 645 856 696 633 535
Portfolio Business 162 165 168 120 151 118 94 81 71
Total 1,321 1,644 1,452 1,454 1,465 1,770 1,433 1,407 1,231
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Wärtsilä Corporation Interim Report January–March 2024
Cash flow from operating activities 258 389 213 75 145 51 100 -90 -122
Working capital (WCAP) at the end of the reporting period -329 -169 43 134 105 179 108 168 -18
The segment related comparison figures for 2023 have been restated to reflect the current organisational structure.
Solvency ratio
Equity
x 100
Total equity and liabilities – advances received
Gearing
Interest-bearing liabilities – cash and cash equivalents
Equity
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Wärtsilä Corporation Interim Report January–March 2024
Order intake
Total amount of orders received during the reporting period to be delivered either during the current reporting period or thereafter.
Order book
The presentation in value of orders that are placed by customers but not yet delivered. For service agreements, only the expected net sales for
the next 24 months are included in the order book.
25 April 2024
Wärtsilä Corporation
Board of Directors
28