Wärtsilä q1 2024 Interim Report

Wärtsilä Corporation Interim Report January–March 2024
1
Double-digit comparable operating margin and continued

strong order intake
Unless otherwise stated, the comparison figures in brackets refer to the corresponding period of the previous year.
Highlights from January–March 2024

• Order intake increased by 11% to EUR 1,924 million (1,739), and the organic growth was 17%
• Service order intake increased by 7% to EUR 949 million (889)
• Order book at the end of the period increased by 19% to EUR 7,294 million (6,153)
• Net sales decreased by 10% to EUR 1,321 million (1,465), and the organic decrease was 6%
• Book-to-bill amounted to 1.46 (1.19)
• Comparable operating result increased by 50% to EUR 132 million (88), which represents 10.0% of net sales (6.0)
• Operating result increased by EUR 35 million to EUR 127 million (92), which represents 9.6% of net sales (6.3)
• Basic earnings per share increased to 0.14 euro (0.09)
• Cash flow from operating activities increased to EUR 258 million (145)
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 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.
2
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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Orders, net sales and profitability

MEUR 1–3/2024 1–3/2023 Change 2023
Order intake 1,924 1,739 11% 7,070
Net sales 1,321 1,465 -10% 6,015
% of net sales 10.0 6.0 8.3
% of net sales 9.6 6.3 6.7
Order intake bridge Net sales bridge

MEUR 1–3/2024 MEUR 1–3/2024
2023 1,739 2023 1,465
Organic 17% Organic -6%
Acquisitions and divestments* 0% Acquisitions and divestments* -1%
FX impact -7% FX impact -3%
2024 1,924 2024 1,321
*Related to American Hydro divestment and exit from Russia
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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Financing, cash flow and capital expenditure

MEUR 1–3/2024 1–3/2023 2023
Working capital -329 105 -169
Net interest-bearing debt, end of period -79 477 35
Gearing -0.04 0.24 0.02
Solvency, % 34.8 33.4 37.0
Equity/share, EUR 3.58 3.40 3.78
Development in January–March Capital expenditure

Cash flow from operating activities totalled EUR 258 million Capital expenditure related to intangible assets and property,
(145), the improvement being driven by a better operating plant, and equipment amounted to EUR 36 million (32) for the
result, good level of received customer payments, and strong period January–March. Capital expenditure related to
service sales. Working capital totalled EUR -329 million at the acquisitions and investments in securities totalled EUR 0
end of the period (-169 at the end of 2023). Advances received million (0). Depreciation, amortisation, and impairment
totalled EUR 852 million (774 at the end of 2023). amounted to EUR 35 million (33), including depreciation of
right-of-use assets of EUR 12 million (12).
Wärtsilä aims to ensure sufficient liquidity at all times through
efficient cash management, and by maintaining the availability In 2024, capital expenditure related to intangible assets and
of sufficient committed and uncommitted credit lines. property, plant, and equipment is expected to be at around the
Refinancing risk is managed by having a balanced and same level as depreciation, amortisation, and impairment.
sufficiently long loan portfolio.
Cash and cash equivalents amounted to EUR 872 million (819

at the end of 2023). Unutilised committed credit facilities
totalled EUR 644 million (644 at the end of 2023).
Wärtsilä’s net interest-bearing debt totalled EUR -79 million at

the end of the period (35 at the end of 2023). The total amount
of short-term debt maturing within the next 12 months is EUR
90 million. Long-term loans amounted to EUR 706 million.
5
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.
6
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.
The energy transition continues to advance, as shown by

another record year of investments in the deployment of clean
technologies in 2023, and a 25% increase in cumulative
installed wind and solar capacity in 2023. Wind and solar
capacity additions are expected to post another record year in
2024.
In engine power plants, demand was stable, with thermal

balancing playing an important role as a complement to
intermittent renewables in addition to continued demand for
traditional baseload power. Demand for services continued at
a good level.
Global orders for natural gas and liquid-fuelled power plants*

increased by 1% to 11.0 GW during the twelve-month period
ending in December 2023 (10.9 GW at the end of June 2023).
In the balancing segment, the pace of the renewable energy

transition continues to be an important driver of demand.
According to BNEF, global investment in the energy transition
reached USD 1.8 trillion in 2023, a new high that is up 17%
from 2022 and is largely due to increased investments in
renewable energy, electric vehicles, and hydrogen. Demand
for thermal balancing is expected to continue to be driven by
these investments and given the historical relationship
between installed renewables capacity and demand for
thermal balancing, market sentiment is positive. The baseload
segment continued to be a strong source of demand for
thermal power and represented about half of the addressable
market in 2023. Reciprocating engines remain an important
source of baseload generation, particularly in remote locations
and other locations where access to grid power is uncertain.
Baseload generation demand is expected to remain stable and
continue to complement the growing demand for renewable
balancing.
*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.
7
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:
Rating Scale Wärtsilä score Sector average Year

CDP D- to A Climate B- Climate C 2023
Water C Water C
Dow Jones* 0 to 100 63** 21 2023
FTSE Russell 1 to 5 3.5 2.2 2023
MSCI CCC to AAA AAA AA 2023
Sustainalytics 100 to 0 24*** 29 2024
*Wärtsilä is listed in DJSI Europe **Percentile ranking in the sector: among the best 3% ***ESG risk rating is scored on 0-100 range, with 0 being
the highest and 100 the lowest score
8
Reporting segment: Wärtsilä Marine

Key figures
MEUR 1–3/2024 1-3/2023* Change 2023*
Order intake 916 744 23% 3,261
Net sales 708 669 6% 2,800
of which equipment 209 237 -12% 938
% of net sales 11.4 9.8 11.2
% of net sales 10.8 10.3 9.9

MEUR 1–3/2024 MEUR 1–3/2024
2023* 744 2023* 669
Organic 29% Organic 8%
Acquisitions and divestments 0% Acquisitions and divestments 0%
2024 916 2024 708
*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)
Financial development in January–March

Order intake increased by 23%. Service order intake increased The comparable operating result amounted to EUR 81
by 16%, driven mainly by the cruise, ferry and navy segments. million (65) or 11.4% of net sales (9.8). The comparable
Equipment order intake increased by 38%, supported mainly operating result was supported by good performance in
by the special vessel, merchant and ferry segments. services, but negatively impacted by increased R&D costs to
support the development of decarbonisation technology, as
Net sales increased by 6%. Service net sales increased by 15%,
well as increased depreciation and amortisation. The
supported mainly by the cruise and offshore segments.
comparable operating margin was supported by a more
Equipment net sales decreased by 12% due to the
favourable business mix between equipment and services.
periodisation of deliveries between quarters.
Items affecting comparability totalled EUR -4 million (4) and
were mainly related to the restructuring of engine
manufacturing.
9
Reporting segment: Wärtsilä Energy

Key figures
MEUR 1–3/2024 1–3/2023 Change 2023
Order intake 774 744 4% 3,041
of which services 319 333 -4% 1,306
Order intake, power plants 538 487 11% 1,985
Order intake, energy storage 236 257 -8% 1,056
Net sales 452 645 -30% 2,610
of which equipment 161 387 -58% 1,515
Net sales, power plants 390 394 -1% 1,684
Net sales, energy storage 62 252 -75% 926
% of net sales 11.1 5.1 8.4
% of net sales, 12 months rolling, energy storage 1 -3 1
% of net sales 11.1 5.2 8.0
Order intake Energy

1-3/2024 1-3/2023 Change
Gas, MW 260 164 59%
Oil, MW - -
Storage**, MWh 995 888 12%
Other*, MW - -
*Includes biofuel power plants and solar installations
**Comparison period has been restated to nameplate MWh, indicating the actual scope instead of the contracted scope

MEUR 1–3/2024 MEUR 1–3/2024
2023 744 2023 645
Organic 13% Organic -26%
Acquisitions and divestments 0% Acquisitions and divestments 0%
2024 774 2024 452

Order intake increased by 4%. Service order intake decreased Net sales decreased by 30%. Services net sales increased by
by 4%, mainly due to the comparison period including a 13%, supported by high activity in transactional and long-term
sizeable upgrade project and several agreement renewals. agreement services. Equipment net sales decreased by 58%,
Equipment order intake increased by 11%, driven by higher due to the periodisation of deliveries between quarters. The
orders in engine power plants while orders in Energy Storage largest decrease was in Energy Storage & Optimisation. In
& Optimisation slightly decreased. 2024, deliveries and revenue recognition in Energy will be
tilted towards the second half of the year.
10
The comparable operating result amounted to EUR 50

million (33) or 11.1% of net sales (5.1) supported by good
performance in services and improved profitability in the
engine power plant business. The comparable operating result
in Energy Storage & Optimisation was impacted by low
volumes. The comparable operating margin in Energy was
supported by a more favourable mix between equipment and
services.
11
Other business activities: Wärtsilä Portfolio Business

Wärtsilä Portfolio Business consists of business units which are run independently with the aim of accelerating performance
improvement and unlocking value through divestments or other strategic alternatives. Currently Portfolio Business includes
Automation, Navigation & Control Systems (ANCS), Gas Solutions, Marine Electrical Systems and Water & Waste.
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
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

Order intake decreased by 7%, as a result of a lower order The comparable operating result amounted to EUR 1 million
intake in the Gas Solutions business unit compared to a strong (-10) or 0.6% of net sales (-6.9). The increase was the result of
comparison period. Services order intake declined by 6%, while good development in all business units.
equipment order intake decreased by 8%.
Net sales increased by 7% driven mainly by good development

in the Automation, Navigation & Control Systems business
unit. Services net sales decreased by 6%, while equipment net
sales increased by 13%.
12
Risks and business uncertainties

General macro environment assets, and can hinder newbuild investments due to concerns
regarding residual asset values.
The ongoing war in Ukraine and the conflict in the Middle East
have resulted in a range of risks to the demand and supply Energy markets
environment of various commodities globally. Deepening
geopolitical tensions have increased risks related to further The overarching trend in the energy markets is the transition
geopolitical fragmentation and resulted in higher uncertainty to renewable energy sources such as wind and solar. The pace
to the macroeconomic outlook. Business operations globally of this shift is the principal driver in the growth of battery
are being impacted by continued inflationary pressure, energy storage and thermal balancing technologies. New
changing trade flows and volumes, tighter monetary policies, technology innovations, as well as the price and availability of
concerns over the Chinese economy, rising protectionism, and fuels and raw materials, affect Wärtsilä’s business. High and
the sanctions in place and planned against Russia. These volatile gas prices directly impact the relative competitiveness
factors are all contributing to the uncertainty in projected of the portfolio against other generating technologies,
global economic growth. Further escalation of any of the especially in thermal baseload plants. Similarly, policies related
forementioned factors could result in increased uncertainty to the energy and electricity markets have direct and indirect
over future demand for the equipment and services provided impacts on future energy capacity and the generation mix. For
by Wärtsilä. Furthermore, the volatility of the geopolitical example, energy and climate policy may speed up or delay the
environment, and the enforcement of sanctions or embargos, energy transition. Recent years have highlighted the impact of
pose a risk to the company’s customer relations and geopolitical tensions in energy market policy and investment
international business activities. With the rapidly growing use decisions. Concentrated supply chains in some countries and
of data in shipping and shipbuilding, as well as in the energy the tight competitive situation impose direct risks on Energy.
markets, cyber threats can potentially result in various forms Energy commodities and supply chains have been at the heart
of financial, operational, or reputational damage to the of trade policy lately, presenting risks for all energy
business. technologies. Competition between and among energy
technologies presents price pressure. Finally, uncertainty
Marine markets related to any of the aforementioned factors tends to delay
investment decisions.
The shipping and shipbuilding markets are under increasing
pressure to reduce carbon emissions due to regional Legal cases
regulations such as EU Fit for 55, the revised and more
ambitious greenhouse gas strategy from the International The Group is a defendant in a number of legal cases that have
Maritime Organisation, green financing, and the individual arisen out of, or are incidental to, the ordinary course of its
sustainability goals of end-customers. This, coupled with business. These lawsuits mainly concern issues such as
longer trade distances resulting from increased geopolitical contractual and other liability, labour relations, property
tensions and disruptions at key waterways, may lead to damage, and regulatory matters. From time to time, the Group
increased costs for shipowners and operators that cannot be receives claims of different amounts and with varying degrees
fully passed on to end customers. of substantiation. There is currently one unusually sizeable
claim. It is the Group’s policy to provide for amounts related to
The development and deployment of suitable future the claims as well as for litigation and arbitration matters when
technologies, a lack of clarity at the global level around an unfavourable outcome is probable, and the amount of loss
decarbonisation-related financial incentives, and the need to can be reasonably estimated.
find the optimal timing of investments based on financial
feasibility and compliance with emission regulations may The annual report contains a more detailed description of
affect the investment appetite of ship owners and operators. Wärtsilä’s risks and risk management.
This concerns both newbuilding programmes and the
management of existing fleets.
Ship owners and operators face risks to their business

profitability due to the limited ability or desire of people to
travel, a lower demand for goods because of continued high
inflation or economic slowdown, as well as higher voyage,
operating and financing costs. Highly indebted shipowners or
operators may not withstand the potential risk of slower than
expected growth in demand, higher financing costs or a
lowered credit rating.
In the offshore oil and gas industry, uncertainty around the

longer-term demand for crude oil, oil price volatility and the
pressure to decarbonise are pushing oil majors to re-evaluate
their spending on exploration activities and operational costs.
This may lead to lower demand for offshore drilling or support
13
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.
Decisions taken by the Annual General Meeting can be seen

from Wärtsilä’s website.
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.
The number of Wärtsilä’s shares outstanding as at 31.3.2024

was 589,080,815, and the number of treasury shares was
2,642,575.
14
Wärtsilä’s Interim Report January‒March 2024

This interim report is prepared in accordance with IAS® amended IFRS® Accounting Standards stated below. All
Standard 34 (Interim Financial Reporting) using the same figures in the accounts have been rounded and consequently
accounting policies and methods of computation as in the the sum of individual figures can deviate from the presented
annual financial statements for 2023, except for the new and sum figure.
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.
Own shares and equity-settled share-based payments

At the beginning of 2024, the total amount of own shares held Wärtsilä has long-term incentive schemes, which can be settled
by the Company was 2,700,000. The shares are to be used for in company shares. These unvested shares are issuable when
pay-outs under the share-based incentive programmes of certain pre-defined conditions in the incentive programmes
Wärtsilä Corporation. During the year, 57,425 own shares were are met during a timeframe set in the incentive programmes’
used to settle share-based payments resulting in the total conditions. If the settlement were to happen at the reporting
amount of 2,642,575 at the end of the reporting period. date, it would result in issuing 302,228 shares. These shares
are considered as potential ordinary shares causing dilutive
effect on the EPS.
Number of shares outstanding on 1 January 2024 589,023,390

Share-based payments settled in company shares 57,425
Number of shares outstanding on 31 March 2024 589,080,815
Weighted average number of shares outstanding during the period 589,044,214
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
15
New and amended Accounting Standards

In 2024, the Group has adopted the following new and Lack of Exchangeability* amends IAS 21 The Effects of
amended Accounting Standards issued by the International Changes in Foreign Exchange Rates. The amendment specifies
Accounting Standards Board (IASB): how an entity should assess whether a currency is
exchangeable and how it should determine a spot exchange
Amendments to IAS 1 Presentation of Financial Statements rate when exchangeability is lacking. If a currency is not
clarify that liabilities are classified as either current or non- exchangeable into another currency, an entity is required to
current, depending on the rights that exist at the end of the estimate the spot exchange rate at the measurement date. The
reporting period. Classification is unaffected by the amendments will have no impact on the consolidated financial
expectations of the entity or events after the reporting date. statements.
The amendments will have no impact on the consolidated
financial statements. New Accounting Standard IFRS 18 Presentation and
Disclosure in Financial Statements* improves the quality of
Amendments to IFRS 16 Leases specify the requirements that a financial reporting by requiring defined subtotals in the
seller-lessee uses in measuring the lease liability arising in a statement of profit or loss and disclosure about management-
sale and leaseback transaction. The amendments will have no defined performance measures, as well as adding new
impact on the consolidated financial statements. principles for aggregation and disaggregation of information.
The standard merely changes the presentation of disclosed
Other new or amended Accounting Standards already effective
information and increases the amount of disclosed
do not have a significant impact on the consolidated financial
information.
statements or other disclosures.
Other new or amended Accounting Standards not yet effective
Later, the Group will adopt the following amended standards
are not expected to have a significant impact on the
issued by IASB:
consolidated financial statements or other disclosures.
Supplier Finance Arrangements* amends IAS 7 Statement of
* Not yet endorsed for adoption by the European Commission
Cash Flows and IFRS 7 Financial Instruments: Disclosures. The
as of 31 March 2024.
amendments increase the transparency of supplier finance
arrangements and their effects on liabilities, cash flows and This interim report is unaudited.
exposure to liquidity risk. The amendments merely increase
the amount of disclosed information.
16
Condensed statement of income
MEUR 1–3/2024 1–3/2023 2023

Net sales 1,321 1,465 6,015
Other operating income 11 27 96
Expenses -1,172 -1,363 -5,516
Result from net position hedges 0 -5 -9
Depreciation, amortisation and impairment -35 -33 -193
Share of result of associates and joint ventures 2 1 9
Operating result 127 92 402
Financial income and expenses -9 -8 -37
Result before taxes 118 84 364
Income taxes -32 -23 -95
Result for the reporting period 86 61 269
Attributable to:
equity holders of the parent company 85 55 258
non-controlling interests 1 6 12
86 61 269
Earnings per share attributable to equity holders of the parent company:

Earnings per share (EPS), basic, EUR 0.14 0.09 0.44
Earnings per share (EPS), diluted, EUR 0.14 0.09 0.44
Condensed statement of comprehensive income
MEUR 1–3/2024 1–3/2023 2023

Other comprehensive income, net of taxes:
Items that will not be reclassified to the statement of income

Remeasurements of defined benefit liabilities -1 1
Total items that will not be reclassified to the statement of income -1 1
Items that may be reclassified subsequently to the statement of income

Exchange rate differences on translating foreign operations
for equity holders of the parent company -2 -21 -25
for non-controlling interests -2
transferred to the statement of income -11 -11
Associates and joint ventures, share of other comprehensive income -2
Cash flow hedges -17 -4 24
Tax on items that may be reclassified to the statement of income 4 1 -2
Total items that may be reclassified to the statement of income -17 -36 -19
Other comprehensive income for the reporting period, net of taxes -18 -36 -17
Total comprehensive income for the reporting period 68 25 252
Total comprehensive income attributable to:

equity holders of the parent company 67 24 247
non-controlling interests 1 1 4
68 25 252
17
Condensed statement of financial position
MEUR 31.3.2024 31.3.2023 31.12.2023

Non-current assets
Intangible assets 1,689 1,680 1,675
Property, plant and equipment 309 302 307
Right-of-use assets 263 267 255
Investments in associates and joint ventures 35 29 33
Other investments 18 19 19
Deferred tax assets 216 193 212
Other receivables 50 80 51
Total non-current assets 2,581 2,571 2,551
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
Assets held for sale 5 52 5
Total assets 6,923 6,627 6,803
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
Total liabilities 4,808 4,593 4,571
Liabilities directly attributable to assets held for sale 0 20
Total equity and liabilities 6,923 6,627 6,803
18
Condensed statement of cash flows
MEUR 1–3/2024 1–3/2023 2023

Cash flow from operating activities:
Adjustments for:
depreciation, amortisation and impairment 35 33 193
financial income and expenses 9 8 37
gains and losses on sale of intangible assets and property, plant and equipment
and other changes -1 -1
share of result of associates and joint ventures -2 -1 -9
income taxes 32 23 95
other non-cash flow adjustments 3 -8 -4
Cash flow before changes in working capital 162 116 581
Changes in working capital 140 58 350
Cash flow from operating activities before financial items and taxes 302 173 931
Financial items and paid taxes -44 -28 -109
Cash flow from investing activities:

Investments in shares and acquisitions 0 -1
Net investments in property, plant and equipment and intangible assets -34 -31 -146
Proceeds from sale of shares in subsidiaries, associated companies and other
investments 0 8
Cash flow from investing activities -34 -31 -138
Cash flow from financing activities:

Repayments to non-controlling interests 0 -5 -5
Repurchase of own shares 0 -10
Proceeds from non-current debt 0 176
Repayments and other changes in non-current debt -87 -108 -321
Changes in current loans and other changes -3 47 8
Dividends paid -82 -68 -156
Cash flow from financing activities -171 -134 -308
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.
19
Condensed statement of changes in equity
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
20
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.
MEUR 1–3/2024 1–3/2023 2023

Net sales
Marine 708 669 2,800
Energy 452 645 2,610
Portfolio Business 162 151 604
Total 1,321 1,465 6,015
Depreciation, amortisation and impairment

Marine -24 -21 -100
Energy -8 -8 -33
Portfolio Business -3 -4 -60
Total -35 -33 -193
Share of result of associates and joint ventures

Marine 2 1 9
Total 2 1 9
Operating result
Marine 77 69 276
Energy 50 34 209
Portfolio Business 0 -10 -83
Total 127 92 402
Operating result as a percentage of net sales (%)

Marine 10.8 10.3 9.9
Energy 11.1 5.2 8.0
Portfolio Business 0.3 -6.8 -13.8
Total 9.6 6.3 6.7
Comparable operating result

Marine 81 65 312
Energy 50 33 219
Portfolio Business 1 -10 -34
Total 132 88 497
Comparable operating result as a percentage of net sales (%)

Marine 11.4 9.8 11.2
Energy 11.1 5.1 8.4
Portfolio Business 0.6 -6.9 -5.7
Total 10.0 6.0 8.3
Net sales by geographical areas
MEUR 1–3/2024 1–3/2023 2023

Europe 464 448 1,954
Asia 344 357 1,678
The Americas 386 505 1,757
Other 128 154 627
Total 1,321 1,465 6,015
21
Service net sales
MEUR 1–3/2024 1–3/2023 2023

Marine, service 498 432 1,862
Energy, service 291 258 1,095
Portfolio Business, service 43 46 191
Total 833 736 3,148
Measures of profit and items affecting comparability
MEUR 1–3/2024 1–3/2023 2023

Comparable adjusted EBITA 137 93 518
Purchase price allocation amortisation -5 -5 -20
Comparable operating result 132 88 497
Items affecting comparability:

Social plan costs 0 -42
Impairment and write-downs 0 -43
Gains and losses on disposal of assets 0 11 11
Other costs -5 -8 -21
Items affecting comparability, total -5 4 -95
Operating result 127 92 402
Items affecting comparability include EUR 3 million of costs

related to the restructuring of engine manufacturing in Europe
and EUR 2 million of other costs.
Assets held for sale

Wärtsilä has classified certain non-current assets relating to engine manufacturing in Europe to Vaasa, Finland. Engine
ending the 4-stroke engine manufacturing in Trieste, Italy as manufacturing in Trieste belongs to Marine.
assets held for sale.
All assets held for sale are valued at the lower of book value or
In July 2022, Wärtsilä announced its plan to ramp down fair value.
manufacturing in Trieste, Italy and to centralise its 4-stroke
Disaggregation of revenue
Revenue from contracts with customers is derived over time
and at a point in time from the following revenue types.
Net sales by revenue type and timing of satisfying performance obligations
MEUR 1–3/2024 1–3/2023 2023

At a point in time
Products 420 375 1,475
Goods and services 159 157 697
Projects 338 323 1,450
Total 916 855 3,622
22
Over time
Projects 224 455 1,688
Long-term agreements 181 155 705
Total 405 610 2,393
Total 1,321 1,465 6,015
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-
Intangible assets and property, plant and equipment
MEUR 1–3/2024 1–3/2023 2023

Intangible assets
Carrying amount on 1 January 1,675 1,680 1,680
Changes in exchange rates 4 -10 -3
Acquisitions and disposals 0 -25
Additions 21 20 95
Amortisation and impairment -12 -13 -97
Decreases and reclassifications 0 3 25
Carrying amount at the end of the reporting period 1,689 1,680 1,675
Property, plant and equipment

Carrying amount on 1 January 307 304 304
Acquisitions and disposals 0 -8
Additions 14 11 54
Depreciation and impairment -11 -10 -46
Decreases and reclassifications -1 -3 5
Carrying amount at the end of the reporting period 309 302 307
Additional impairment testing of cash generating unit Marine Systems
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
23
Leases
MEUR 1–3/2024 1–3/2023 2023

Land and buildings, right-of-use assets
Changes in exchange rates -1 -2 -3
Additions 22 22 50
Decreases and reclassifications -2 -5
Machinery and equipment, right-of-use assets

Additions 1 1 6
Decreases and reclassifications 0 -1
Lease liabilities
Additions 23 24 56
Interest expenses -1 2
Payments -13 -12 -48
Other adjustments -2 -6
Amounts recognised in statement of income

Interest expenses -2 -2 -8
Expense – short-term leases -7 -8 -31
Expense – leases of low-value assets -2 -2 -6
Expense – variable lease payments -3 -3 -9
Gross capital expenditure
MEUR 1–3/2024 1–3/2023 2023

Investments in securities and acquisitions 0 1
Investments in intangible assets and property, plant and equipment 36 32 148
Total 36 32 149
Net interest-bearing debt
MEUR 31.3.2024 31.3.2023 31.12.2023

Lease liabilities, non-current 230 232 224
Other interest-bearing debt, non-current 476 413 515
Lease liabilities, current 44 44 44
Other interest-bearing debt, current 46 233 76
Total interest-bearing liabilities 796 921 858
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
Total net interest-bearing debt -79 477 35
24
Financial ratios
1–3/2024 1–3/2023 2023

Earnings per share (EPS), basic, EUR 0.14 0.09 0.44
Earnings per share (EPS), diluted, EUR 0.14 0.09 0.44
Equity per share, EUR 3.58 3.40 3.78
Solvency ratio, % 34.8 33.4 37.0
Gearing -0.04 0.24 0.02
Return on investment (ROI), % 16.0 8.1 13.9
Return on equity (ROE), % 14.3 7.1 12.3
The financial ratios include assets and liabilities pertaining to assets held for sale.
Personnel
1–3/2024 1–3/2023 2023

On average 17,871 17,674 17,666
At the end of the reporting period 17,909 17,713 17,807
Contingent liabilities
MEUR 31.3.2024 31.3.2023 31.12.2023

Mortgages 10 10 10
Chattel mortgages and other pledges and securities 13 17 13
Total 23 27 23
Guarantees and contingent liabilities

on behalf of Group companies 1,204 1,013 997
Nominal amounts of lease liabilities
Low-value lease liabilities 12 11 12
Short-term lease liabilities 3 3 4
Leases not yet commenced, but to which Wärtsilä is committed 1 21 14
Residual value guarantee 90 90 90
Total 1,311 1,138 1,117
Nominal values of derivative instruments
MEUR Total amount of which closed

Non-deliverable forwards 4
Interest rate swaps 168
Cross currency swaps 153
Foreign exchange forward contracts 2,091 1,004
Total at the end of the reporting period 2,417 1,004
In addition, the Group had copper swaps amounting to 1,000 tons.
25
Fair values
Fair value measurements at the end of the reporting period:
Carrying amounts of the

statement of financial Fair
MEUR position items value
Financial assets
Other investments (level 3) 18 18
Interest-bearing investments, non-current (level 2) 4 4
Other receivables, non-current (level 2) 1 1
Derivatives (level 2) 23 23
Financial liabilities
Interest-bearing debt, non-current (level 2) 706 701
Derivatives (level 2) 43 43
Quarterly figures
1–3/ 10–12/ 7–9/ 4–6/ 1–3/ 10–12/ 7–9/ 4–6/ 1–3/

MEUR 2024 2023 2023 2023 2023 2022 2022 2022 2022
Order intake
Marine 916 844 902 771 744
Marine Power 693 627 575 620
Marine Systems 126 89 131 112
Energy 774 868 679 750 744 646 805 654 507
Portfolio Business 234 144 207 166 252 173 95 81 141
Total 1,924 1,856 1,787 1,687 1,739 1,638 1,616 1,440 1,380
Order book at the end of the reporting period

Marine 3,008 2,808 2,751 2,535 2,493
Marine Power 2,273 2,250 2,087 2,261
Energy 3,033 2,693 2,620 2,548 2,483 2,376 2,702 2,506 2,442
Portfolio Business 1,252 1,192 1,222 1,165 1,177 823 779 772 766
Total 7,294 6,694 6,594 6,249 6,153 5,906 6,229 5,936 6,107
Net sales
Marine 708 759 671 701 669
Marine Power 589 484 527 477
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
Share of result of associates and joint ventures 2 2 2 3 1 3 2

Comparable adjusted EBITA 137 182 130 113 93 99 87 91 72
as a percentage of net sales 10.4 11.1 8.9 7.8 6.4 5.6 6.1 6.4 5.9
Depreciation, amortisation and impairment -35 -45 -34 -81 -33 -56 -51 -34 -122
Purchase price allocation amortisation -5 -5 -5 -5 -5 -5 -6 -5 -7
Comparable operating result 132 177 125 108 88 93 82 85 65
as a percentage of net sales 10.0 10.8 8.6 7.4 6.0 5.3 5.7 6.1 5.3
Items affecting comparability, total -5 -49 -8 -42 4 -56 -72 -10 -212
Operating result 127 128 117 66 92 37 10 75 -147
as a percentage of net sales 9.6 7.8 8.0 4.5 6.3 2.1 0.7 5.3 -11.9
Financial income and expenses -9 -8 -9 -12 -8 -2 -2 -2
Result before taxes 118 120 107 53 84 35 7 72 -147
Income taxes -32 -24 -25 -24 -23 -7 -4 -20 5
Result for the reporting period 86 96 82 30 61 28 3 52 -142
Earnings per share (EPS), basic, EUR 0.14 0.16 0.14 0.05 0.09 0.05 0.00 0.09 -0.24
Earnings per share (EPS), diluted, EUR 0.14 0.16 0.14 0.05 0.09 0.05 0.00 0.09 -0.24
Gross capital expenditure 36 51 31 35 32 49 37 40 35
Investments in securities and acquisitions 0 1 4 1
26
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
Personnel at the end of the reporting period

Marine 10,657 10,602 10,530 10,441 10,369
Marine Power 9,157 9,200 9,158 9,065
Marine Systems 1,584 1,575 1,565 1,554
Energy 5,460 5,430 5,416 5,380 5,342 5,320 5,309 5,247 5,073
Portfolio Business 1,792 1,774 1,750 1,732 2,002 1,520 1,501 1,577 1,659
Total 17,909 17,807 17,696 17,553 17,713 17,581 17,585 17,547 17,351
The segment related comparison figures for 2023 have been restated to reflect the current organisational structure.
Calculations of financial ratios

Operating result
Net sales + other operating income – expenses – depreciation, amortisation and impairment +/– share of result of associates and joint ventures
Earnings per share (EPS), basic

Result for the reporting period attributable to equity holders of the parent company
Number of shares outstanding, average over the reporting period
Earnings per share (EPS), diluted

Result for the reporting period attributable to equity holders of the parent company
Number of shares outstanding, average over the reporting period + number of potential ordinary shares with dilutive effect
Items affecting comparability

Certain income and expenses are presented as items affecting comparability when they have significant impact on the consolidated statement
of income. Items affecting comparability consist of income and expenses, which result from restructuring activities aiming to adjust the capacity
of Wärtsilä’s operations. They may also include other income and expenses incurred outside Wärtsilä’s normal course of business, such as
impairment charges, acquisition related costs, settlements recorded as a result of legal proceedings with third parties or unforeseen obligations
from earlier discontinued businesses.
Comparable operating result

Operating result – items affecting comparability
Comparable adjusted EBITA

Operating result – items affecting comparability – purchase price allocation amortisation
Gross capital expenditure

Investments in securities and acquisitions + investments in intangible assets and property, plant and equipment
Net interest-bearing debt

Non-current and current lease liabilities + non-current and current other interest-bearing debt – interest-bearing receivables – cash and cash
equivalents
Equity per share

Equity attributable to equity holders of the parent company
Number of shares outstanding at the end of the reporting period
Solvency ratio
Equity
x 100
Total equity and liabilities – advances received
Gearing
Interest-bearing liabilities – cash and cash equivalents
Equity
Return on investment (ROI)

Result before taxes + interest and other financial expenses
Total equity and liabilities – non-interest-bearing liabilities – provisions, average over the reporting period
Return on equity (ROE)

Result for the reporting period
Equity, average over the reporting period
27
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.
Working capital (WCAP)

(Inventories + trade receivables + current tax receivables + other non-interest-bearing receivables)
– (trade payables + advances received + pension obligations + provisions + current tax liabilities + other non-interest-bearing liabilities – dividend
payable)
25 April 2024
Wärtsilä Corporation
Board of Directors
28

Wärtsilä q1 2024 Interim Report

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Wärtsilä Corporation Interim Report January–March 2024

Double-digit comparable operating margin and continued

Highlights from January–March 2024

Orders, net sales and profitability

Order intake bridge Net sales bridge

*Related to American Hydro divestment and exit from Russia

Financing, cash flow and capital expenditure

Development in January–March Capital expenditure

Cash and cash equivalents amounted to EUR 872 million (819

Wärtsilä’s net interest-bearing debt totalled EUR -79 million at

The energy transition continues to advance, as shown by

In engine power plants, demand was stable, with thermal

Global orders for natural gas and liquid-fuelled power plants*

In the balancing segment, the pace of the renewable energy

Rating Scale Wärtsilä score Sector average Year

Reporting segment: Wärtsilä Marine

Order intake bridge Net sales bridge

Financial development in January–March

Reporting segment: Wärtsilä Energy

Order intake Energy

Order intake bridge Net sales bridge

Financial development in January–March

The comparable operating result amounted to EUR 50

Other business activities: Wärtsilä Portfolio Business

Financial development in January–March

Net sales increased by 7% driven mainly by good development

Risks and business uncertainties

Ship owners and operators face risks to their business

In the offshore oil and gas industry, uncertainty around the

Decisions taken by the Annual General Meeting can be seen

The number of Wärtsilä’s shares outstanding as at 31.3.2024

Wärtsilä’s Interim Report January‒March 2024

Own shares and equity-settled share-based payments

Number of shares outstanding on 1 January 2024 589,023,390

Weighted average number of shares outstanding during the period 589,044,214

New and amended Accounting Standards

Condensed statement of income

MEUR 1–3/2024 1–3/2023 2023

Earnings per share attributable to equity holders of the parent company:

Condensed statement of comprehensive income

MEUR 1–3/2024 1–3/2023 2023

Other comprehensive income, net of taxes:

Items that will not be reclassified to the statement of income

Items that may be reclassified subsequently to the statement of income

Total comprehensive income for the reporting period 68 25 252

Total comprehensive income attributable to:

Condensed statement of financial position

MEUR 31.3.2024 31.3.2023 31.12.2023

Assets held for sale 5 52 5

Total assets 6,923 6,627 6,803

Total liabilities 4,808 4,593 4,571

Liabilities directly attributable to assets held for sale 0 20

Total equity and liabilities 6,923 6,627 6,803

Condensed statement of cash flows

MEUR 1–3/2024 1–3/2023 2023

Cash flow from investing activities:

Cash flow from financing activities:

Condensed statement of changes in equity

MEUR 1–3/2024 1–3/2023 2023

Depreciation, amortisation and impairment