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T
 
his
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
F
 
inancial
 
review
 
BOARD
 
OF
 
DIRECTORS'
 
REPORT
BUSINESS
 
MODEL
Wärtsilä
 
provides
 
the
 
marine
 
and
 
energy
 
markets
 
with
 
smart
technologies
 
and
 
optimised
 
lifecycle
 
services.
 
In
 
the
 
energy
industry,
 
Wärtsilä
 
offers
 
flexible
 
power
 
plants
 
as
 
well
 
as
energy
 
management
 
and
 
storage
 
systems
 
on
 
an
 
equipment
only
 
or
 
turnkey
 
delivery
 
basis.
 
The
 
marine
 
offering
 
includes
power
 
systems,
 
voyage
 
solutions,
 
as
 
well
 
as
 
exhaust
treatment
 
applications,
 
gas
 
solutions,
 
and
 
shaft
 
line
 
solutions.
Wärtsilä
 
has
 
the
 
capabilities
 
needed
 
to
 
combine
 
its
 
marine
products
 
into
 
larger
 
integrated
 
systems
 
and
 
solutions.
Wärtsilä’s
 
portfolio
 
of
 
services
 
ranges
 
from
 
spare
 
parts
 
and
technical
 
expertise,
 
to
 
lifecycle
 
solutions
 
ensuring
 
a
maximised
 
installation
 
lifetime,
 
increased
 
efficiency,
 
and
guaranteed
 
performance.
 
The
 
company
 
aims
 
at
 
maximising
environmental
 
and
 
economic
 
performance
 
by
 
emphasising
sustainable,
 
data
 
-driven
 
innovation
 
and
 
total
 
efficiency.
 
To
 
support
 
its
 
geographically
 
dispersed
 
customer
 
base,
Wärtsilä’s
 
sales
 
and
 
service
 
network
 
covers
 
258
 
locations
 
in
73
 
countries
 
around
 
the
 
world.
 
Wärtsilä
 
operates
 
primarily
through
 
its
 
subsidiaries
 
and
 
strategic
 
joint
 
ventures.
 
The
company’s
 
manufacturing
 
model
 
is
 
assembly
 
based,
 
thus
emphasising
 
the
 
importance
 
of
 
developing
 
long
 
-term
relationships
 
with
 
its
 
global
 
network
 
of
 
suppliers,
 
which
consists
 
of
 
appr
 
oximately
 
1,200
 
global
 
direct
 
suppliers.
Wärtsilä’s
 
personnel
 
is
 
made
 
up
 
of
 
approximately
 
18,000
employees
 
comprising
 
139
 
nationalities.
 
By
 
recruiting
 
and
retaining
 
the
 
best
 
talent,
 
Wärtsilä
 
is
 
able
 
to
 
be
 
the
 
most
valued
 
business
 
partner
 
to
 
its
 
customers,
 
and
 
the
 
employer
 
of
choice
 
for
 
current
 
and
 
future
 
employees.
 
Wärtsilä
 
is
committed
 
to
 
conducting
 
its
 
business
 
in
 
a
 
responsible
manner,
 
and
 
promotes
 
responsible
 
practices
 
throughout
 
its
value
 
chain.
 
CEO
 
APPOINTMENT
In
 
September,
 
Håkan
 
Agnevall
 
(b.
 
1966,
 
M.Sc.
 
(Tech),
 
MBA)
was
 
appointed
 
as
 
the
 
new
 
President
 
and
 
CEO
 
for
 
Wärtsilä
Corporation.
 
Mr
 
Agnevall
 
assumed
 
the
 
role
 
on
 
1
 
February
2021.
 
He
 
succeeds
 
Jaakko
 
Eskola,
 
who
 
will
 
continue
 
as
 
a
senior
 
advisor
 
to
 
the
 
Board
 
and
 
executive
 
team
 
until
 
he
retires
 
on
 
30
 
June
 
2021.
Mr
 
Agnevall
 
has
 
a
 
proven
 
record
 
of
 
developing
 
organisations
and
 
businesses
 
with
 
a
 
strong
 
focus
 
on
 
customers,
technology,
 
and
 
people.
 
His
 
experience
 
in
pioneering
 
electrification
 
and
 
autonomous
 
transportation
 
will
strengthen
 
Wärtsilä’s
 
activities
 
in
 
corresponding
 
areas.
STRATEGY
Strategy
 
implementation
 
in
 
2020
Despite
 
the
 
COVID
 
-19
 
related
 
disruptions
 
to
 
business
operations,
 
Wärtsilä’s
 
commitment
 
to
 
R&D
 
activities
 
has
remained
 
unchanged.
 
The
 
year
 
saw
 
progress
 
in
 
future-
proofing
 
engine
 
technology
 
in
 
line
 
with
 
the
 
global
 
trend
towards
 
the
 
decarbonisation
 
of
 
the
 
energy
 
and
 
marine
markets
 
.
 
This
 
was
 
demonstrated
 
by
 
the
 
initiation
 
of
 
full
 
-scale
testing
 
of
 
ammonia
 
as
 
a
 
fuel
 
in
 
Wärtsilä’s
 
four
 
-stroke
combustion
 
engine
 
,
 
as
 
well
 
as
 
with
 
the
 
announcement
 
of
efforts
 
to
 
develop
 
the
 
combustion
 
process
 
in
 
gas
 
engines
 
to
enabl
 
e
 
them
 
over
 
time
 
to
 
burn
 
100%
 
hydrogen
 
fuel.
 
Several
new
 
concepts
 
utilising
 
connectivity
 
and
 
digitalisation
 
to
enhance
 
efficiency,
 
sustainability
 
,
 
and
 
the
 
safety
 
of
 
customer
operations
 
were
 
also
 
introduced.
 
These
 
included
 
solutions
 
for
smart
 
navigation,
 
remote
 
support
 
services,
 
as
 
well
 
as
 
a
 
cloud
simulation
 
platform
 
enabling
 
remote
 
training.
 
For
 
the
 
energy
ma
 
rkets
 
,
 
Wärtsilä
 
launched
 
the
 
Energy
 
Transition
 
Lab,
 
an
open
 
-data
 
p
 
latform
 
for
 
the
 
energy
 
industry
 
to
 
understand
 
the
impact
 
of
 
greater
 
utilisation
 
of
 
renewable
 
energy
 
and
 
the
effects
 
of
 
COVID
 
-19,
 
and
 
help
 
accelerate
 
the
 
energy
transition
 
.
Wärtsilä’s
 
emphasis
 
on
 
developing
 
solutions
 
utilising
 
the
latest
 
technology,
 
in
 
line
 
with
 
its
 
Smart
 
Marine
 
and
 
Smart
Energy
 
strategies,
 
resulted
 
a
 
number
 
of
 
important
 
orders
during
 
the
 
year.
 
In
 
the
 
marine
 
markets,
 
Wärtsilä
 
received
several
 
orders
 
for
 
hybrid
 
solutions,
 
including
 
a
 
contract
 
to
supply
 
a
 
fully
 
integrated
 
Wärtsilä
 
hybrid
 
solution
 
for
 
Misje
Rederi’s
 
three
 
newbuild
 
eco
 
-friendly
 
5,000
 
DWT
 
bulk
 
carriers.
Moreover,
 
the
 
order
 
from
 
UltraShip
 
Denmark
 
to
 
install
 
the
cloud
 
-based
 
Wärtsilä
 
Fleet
 
Operations
 
Solution
 
(
 
FOS
 
)
 
across
their
 
entire
 
fleet
 
demonstrates
 
market
 
development
 
towards
dig
 
ital
 
solutions
 
to
 
improve
 
efficiency
 
and
 
lessen
environmental
 
impact.
 
In
 
the
 
energy
 
sector,
 
the
 
need
 
for
flexible
 
power
 
solutions
 
to
 
support
 
the
 
expansion
 
of
renewable
 
energy
 
and
 
secure
 
grid
 
reliability
 
was
 
illustrated
 
by
the
 
resilience
 
of
 
activity
 
in
 
the
 
energy
 
storage
 
markets.
Awarded
 
contracts
 
included
 
the
 
first
 
order
 
for
 
the
 
GridSolv
Quantum
 
energy
 
storage
 
system,
 
a
 
fully
 
integrated
 
modular
and
 
compact
 
solution
 
that
 
enables
 
the
 
rapid
 
deployment
 
of
cost
 
-effective
 
energy
 
storage.
 
Another
 
order
 
reflecting
 
the
benefits
 
of
 
flexibility
 
was
 
the
 
contract
 
received
 
in
 
Europe
 
to
deliver
 
four
 
natural
 
gas
 
driven
 
power
 
plants
 
with
 
a
 
combined
output
 
of
 
nearly
 
300
 
MW.
 
The
 
new
 
fast
 
-starting
 
plants
 
will
provide
 
flexible
 
system
 
balancing
 
as
 
more
 
renewable
 
power
is
 
incorpor
 
ated
 
into
 
the
 
power
 
system.
 
Collaboration
 
with
 
industry
 
stakeholders
 
is
 
an
 
essential
element
 
in
 
the
 
development
 
of
 
technologies
 
needed
 
to
 
meet
changing
 
market
 
requirements
 
.
 
Joint
 
efforts
 
includ
 
ed
agreements
 
aimed
 
at
 
accelerating
 
the
 
marine
 
industry’s
ongoing
 
digital
 
transformation,
 
developing
 
autonomous
shipping,
 
and
 
exploring
 
the
 
use
 
of
 
new
 
technologies
 
and
alternative
 
fuels
 
to
 
promote
 
decarbonisation
 
efforts.
 
 
 
 
 
 
 
 
 
T
 
his
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
F
 
inancial
 
review
 
While
 
the
 
health
 
and
 
safety
 
of
 
personnel
 
is
 
a
 
continuous
priority
 
for
 
Wärtsilä,
 
it
 
reached
 
a
 
new
 
level
 
of
 
importance
 
in
2020
 
with
 
the
 
onset
 
of
 
the
 
global
 
C
 
OVID
 
-19
 
pandemic.
Wärtsilä
 
maintains
 
a
 
diverse
 
global
 
workforce
 
with
 
thousands
of
 
employees
 
perform
 
ing
 
tasks
 
onsite,
 
either
 
in
 
the
 
field
 
or
 
at
customer
 
premises.
 
By
 
establishing
 
a
 
global
 
crisis
 
response
team
 
and
 
local
 
country
 
incident
 
management
 
teams,
 
it
 
was
possible
 
to
 
monitor
 
and
 
act
 
upon
 
the
 
rapidly
 
developing
situation.
 
Global
 
mobility
 
was
 
secured
 
whilst
 
observing
appropriate
 
safety
 
and
 
precautionary
 
measures.
 
Numerous
Wärtsilä
 
employees
 
resorted
 
to
 
performing
 
their
 
work
remotely.
 
In
 
order
 
to
 
accommodate
 
this
 
way
 
of
 
working,
 
and
to
 
ensure
 
that
 
the
 
change
 
of
 
routine
 
functioned
 
smoothly,
Wärtsilä
 
provided
 
employees
 
with
 
digital
 
collaboration
 
tools
and
 
methods.
 
Furthermore,
 
guidelines
 
and
 
devices
 
were
provided
 
to
 
secure
 
an
 
appropriate
 
working
 
environment
 
at
their
 
homes.
 
Zero
 
lost
 
-time
 
injuries
 
continues
 
to
 
be
 
the
company’s
 
global
 
target.
 
During
 
2020,
 
lost
 
-time
 
injury
frequency
 
was
 
2.03
 
(2.25),
 
which
 
represents
 
a
 
decrease
 
of
1
 
0
 
%
 
compared
 
to
 
the
 
previous
 
year.
 
 
Financial
 
targets
 
and
 
outcome
 
in
 
2020
Wärtsilä’s
 
long
 
-term
 
financial
 
target
 
is
 
to
 
grow
 
faster
 
than
global
 
GDP,
 
and
 
to
 
maintain
 
its
 
operating
 
profit
 
margin
between
 
14%
 
at
 
the
 
peak
 
of
 
the
 
cycle
 
and
 
10%
 
at
 
the
 
trough.
Furthermore,
 
the
 
target
 
is
 
to
 
maintain
 
gearing
 
below
 
0.50,
and
 
to
 
pay
 
a
 
dividend
 
of
 
at
 
least
 
50%
 
of
 
earnings
 
per
 
share
over
 
the
 
cycle.
 
Wärtsilä’s
 
financial
 
performance
 
in
 
2020
 
was
 
below
 
the
 
long-
term
 
target,
 
as
 
a
 
result
 
of
 
the
 
effects
 
of
 
the
 
COVID
 
-19
pandemic
 
on
 
the
 
company’s
 
demand
 
environment
 
and
business
 
operations.
 
Net
 
sales
 
for
 
2020
 
declined
 
by
 
11%,
bringing
 
Wärtsilä’s
 
five
 
-year
 
compound
 
annual
 
growth
 
rate
 
to
-2%.
 
The
 
five
 
-year
 
compound
 
annual
 
growth
 
rate
 
of
 
the
 
global
GDP
 
was
 
2.3
 
%
 
(source:
 
IMF
 
estimate
 
as
 
of
 
October
 
202
 
0
 
).
Wärtsilä’s
 
comparable
 
operating
 
result
 
amounted
 
to
 
EUR
 
275
million,
 
which
 
represents
 
6.0%
 
of
 
net
 
sales.
 
Gearing
decreased
 
to
 
0.18.
 
The
 
Board
 
of
 
Directors'
 
proposed
 
dividend
of
 
EUR
 
0.20
 
per
 
share
 
represents
 
88.2%
 
of
 
operational
earnings.
THE
 
YEAR
 
2020
Operating
 
environment
Marine
The
 
effects
 
of
 
the
 
COVID
 
-19
 
pandemic
 
significantly
 
affected
the
 
demand
 
for
 
equipment
 
and
 
services
 
in
 
the
 
shipping
 
and
shipbuilding
 
markets
 
throughout
 
2020.
 
The
 
decline
 
in
seaborne
 
trade
 
and
 
travel
 
restrictions
 
impacted
 
the
 
fleet
utili
 
s
 
ation
 
rate,
 
especially
 
in
 
the
 
passenger
 
sector,
 
and
 
limited
the
 
appetite
 
for
 
newbuild
 
investments.
 
As
 
a
 
result,
 
only
 
815
vessels
 
were
 
contracted
 
during
 
the
 
year
 
(1,153
 
in
 
2019,
excluding
 
late
 
contracting)
 
and
 
the
 
demand
 
for
 
spare
 
parts
and
 
maintenance
 
activities
 
softened.
 
The
 
news
 
released
 
in
Novembe
 
r
 
regarding
 
COVID
 
-19
 
vaccine
 
results
 
improved
confidence
 
in
 
a
 
recovery
 
in
 
both
 
newbuild
 
and
 
service
activit
 
ies
 
across
 
all
 
vessel
 
segments.
Cruise
 
operations
 
were
 
heavily
 
affected
 
by
 
the
 
travel
restrictions
 
and
 
no
 
-sail
 
orders.
 
Despite
 
a
 
marginal
 
uptick
 
in
cruise
 
activity
 
towards
 
the
 
end
 
of
 
the
 
year,
 
the
 
vast
 
majority
 
of
the
 
fleet
 
remains
 
idled.
 
After
 
the
 
initial
 
disruptions
 
following
the
 
first
 
virus
 
outbreak,
 
the
 
ferry
 
fleet
 
was
 
gradually
reactivated
 
over
 
the
 
summer,
 
but
 
was
 
increasingly
 
idled
 
again
in
 
the
 
fourth
 
quarter
 
as
 
,
 
on
 
top
 
of
 
the
 
typical
 
seasonal
unwinding
 
,
 
a
 
new
 
wave
 
of
 
COVID
 
-19
 
hit
 
the
 
European
markets.
 
The
 
offshore
 
sector
 
continued
 
to
 
be
 
under
 
severe
pressure
 
due
 
to
 
low
 
oil
 
demand.
 
Limited
 
exploration
 
activity
led
 
to
 
a
 
decline
 
in
 
utilisation
 
of
 
drilling
 
rigs
 
and
 
support
vessels
 
to
 
levels
 
similar
 
to
 
the
 
post
 
-2014
 
market
 
cycle.
Conversely,
 
the
 
expected
 
growth
 
in
 
offshore
 
wind
 
projects
generated
 
demand
 
for
 
speciali
 
sed
 
vessels,
 
providing
newbuild
 
and
 
service
 
opportunities
 
in
 
wind
 
farm
 
related
vessels.
 
In
 
the
 
LNG
 
shipping
 
sector,
 
a
 
positive
 
trend
 
in
 
spot
rates
 
began
 
in
 
the
 
third
 
quarter
 
as
 
a
 
result
 
of
 
the
 
rapid
increase
 
in
 
Asian
 
LNG
 
demand
 
.
 
This
 
was
 
due
 
to
 
seasonal
factors
 
as
 
well
 
as
 
constrained
 
supply
 
resulting
 
from
 
outages
at
 
several
 
liquefaction
 
terminals.
 
The
 
containership
 
market
recovered
 
rapidly
 
from
 
the
 
initial
 
shock
 
posed
 
by
 
COVID
 
-19.
This
 
recovery
 
was
 
supported
 
by
 
continuous
 
gains
 
in
 
freight
volumes
 
resulting
 
in
 
higher
 
freight
 
rates
 
and
 
less
 
idle
capacity.
 
Crude
 
oil
 
and
 
product
 
tanker
 
earnings
 
remained
under
 
significant
 
pressure
 
during
 
the
 
latter
 
part
 
of
 
the
 
year,
 
as
oil
 
supply
 
cuts
 
and
 
the
 
unwinding
 
of
 
floating
 
storage
 
lowered
the
 
demand
 
for
 
oil.
 
Although
 
earnings
 
for
 
bulk
 
carriers
increased
 
in
 
the
 
second
 
half
 
,
 
thanks
 
to
 
a
 
higher
 
demand
 
for
iron
 
ore
 
from
 
China,
 
the
 
number
 
of
 
idled
 
vessels
 
continues
 
to
be
 
above
 
normal
 
levels.
 
The
 
HSFO/VLSFO
 
price
 
differential
 
narrowed
 
significantly
 
as
a
 
result
 
of
 
both
 
the
 
sharp
 
decline
 
in
 
oil
 
prices
 
and
 
improved
VLSFO
 
availability,
 
thus
 
negatively
 
impacting
 
the
 
pace
 
of
scrubber
 
retrofits
 
and
 
installations
 
on
 
newbuilds.
 
After
 
the
positive
 
news
 
regarding
 
COVID
 
-19
 
vaccine
 
breakthroughs
 
in
November,
 
oil
 
prices
 
surged
 
and,
 
consequently,
 
the
 
price
spread
 
between
 
bunker
 
fuel
 
types
 
increased
 
to
 
around
 
80
USD
 
per
 
tonne.
 
Nevertheless,
 
the
 
market
 
for
 
scrubber
Target
Development
 
in
 
2020
Development
 
in
 
2019
Net
 
sales
 
growth
 
faster
 
than
 
global
 
GDP
-11%
0%
Comparable
 
operating
 
result
 
margin
 
between
 
10%
 
and
 
14%
6.0%
8.8%
Gearing
 
below
 
0.50
0.18
0.30
Dividend
 
payment
 
at
 
least
 
50%
 
of
 
earnings
 
per
 
share
 
over
 
the
 
cycle
88.2%*
130.8%
*Proposal
 
of
 
the
 
Board
 
of
 
Directors
 
 
T
 
his
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
F
 
inancial
 
review
 
contracting
 
is
 
still
 
characteri
 
sed
 
by
 
a
 
high
 
degree
 
of
uncertainty
 
,
 
mostly
 
due
 
to
 
the
 
limited
 
visibility
 
on
 
future
 
price
spreads.
 
While
 
the
 
pandemic
 
has
 
led
 
to
 
a
 
significant
 
contraction
 
in
trade
 
volumes,
 
it
 
has
 
also
 
accelerated
 
the
 
digital
transformation
 
through
 
new
 
technologies
 
and
 
digital
applications
 
being
 
adopted
 
as
 
a
 
matter
 
of
 
necessity.
 
The
 
use
of
 
cloud
 
-based
 
remote
 
solutions
 
h
 
as
 
also
 
accelerated
 
in
response
 
to
 
restrictions
 
on
 
physical
 
travel.
 
Ship
 
-to
 
-port
communications,
 
as
 
well
 
as
 
document
 
and
 
data
 
exchange
 
,
are
 
increasingly
 
being
 
handled
 
electronically
 
rather
 
than
 
via
personal
 
interaction,
 
both
 
on
 
ships
 
and
 
in
 
port.
 
Furthermore,
fleet
 
optimisation
 
and
 
performance
 
management
 
technologies
are
 
increasingly
 
being
 
accepted
 
as
 
central
 
in
 
order
 
to
 
secure
profitability
 
in
 
a
 
competitive
 
market.
Meanwhile,
 
the
 
path
 
towards
 
the
 
decarbonisation
 
of
 
the
shipping
 
industry
 
continued
 
to
 
gain
 
p
 
ace.
 
The
 
share
 
of
alternative
 
-fuel
 
capable
 
vessels
 
among
 
the
 
total
 
newbuild
contracting
 
increased
 
during
 
the
 
year.
 
LNG
 
has
 
cemented
 
its
position
 
as
 
the
 
most
 
widely
 
adopted
 
alternative
 
fuel,
 
as
 
it
enables
 
immediate
 
GHG
 
emission
 
reductions.
 
Moreover,
 
the
dua
 
l-fuel
 
engine
 
technology
 
used
 
to
 
burn
 
LNG
 
is
 
fuel
 
flexible,
thus
 
mitigating
 
business
 
risks
 
associated
 
with
 
future
 
fuel
related
 
uncertainties
 
.
 
Zero
 
-carbon
 
fuels
 
,
 
such
 
as
 
biofuels,
ammonia
 
and
 
hydrogen
 
,
 
are
 
also
 
gaining
 
interest
 
as
 
are
various
 
energy
 
saving
 
technologies.
 
The
 
IMO
 
released
 
a
 
plan
in
 
November
 
to
 
drive
 
the
 
shipping
 
industry
 
towards
 
its
ambitious
 
decarbonisation
 
targets,
 
with
 
a
 
set
 
of
 
policies
coming
 
into
 
force
 
from
 
2022
 
onwards.
 
At
 
the
 
same
 
time,
 
the
European
 
Parliament
 
approved
 
a
 
proposal
 
to
 
include
 
shipping
in
 
its
 
emissions
 
trading
 
scheme
 
(ETS).
 
With
 
new
 
rules
expected
 
in
 
the
 
coming
 
years
 
that
 
will
 
require
 
shipowners
 
to
reduce
 
their
 
emissions
 
through
 
technical
 
or
 
operational
measures,
 
there
 
is
 
a
 
growing
 
consensus
 
that
 
vessels
 
should
increasingly
 
adopt
 
interoperable
 
network
 
technology
 
to
 
link
onboard
 
machinery,
 
navigation,
 
cargo
 
handling
 
,
 
and
 
other
systems
 
.
 
Such
 
technology
 
will
 
reduce
 
fuel
 
consumption,
 
while
representing
 
an
 
important
 
step
 
towards
 
decarbonisation
 
and
increased
 
efficiency.
Energy
The
 
COVID
 
-19
 
pandemic
 
and
 
the
 
resulting
 
slowdown
 
of
economic
 
activity
 
had
 
a
 
negative
 
impact
 
on
 
the
 
global
 
liquid
and
 
gas
 
fuelled
 
power
 
plant
 
markets
 
throughout
 
2020.
 
While
the
 
market
 
situation
 
has
 
stabilised
 
and
 
is
 
showing
 
some
improvement,
 
the
 
prevailing
 
uncertainty
 
regarding
 
the
duration,
 
development
 
,
 
and
 
economic
 
impacts
 
of
 
the
pandemic
 
continues
 
to
 
result
 
in
 
customers
 
postpon
 
ing
investments
 
in
 
new
 
power
 
plant
 
capacity.
 
Additionally,
 
energy
policies
 
are
 
being
 
developed
 
to
 
drive
 
ambitious
decarboni
 
s
 
ation
 
ta
 
rgets
 
,
 
and
 
utilities
 
continue
 
to
 
update
 
their
investment
 
strategies,
 
which
 
is
 
causing
 
uncertainty
 
and
delays
 
in
 
decision
 
-
 
making.
 
However,
 
activity
 
in
 
energy
storage
 
was
 
at
 
a
 
good
 
level,
 
driven
 
by
 
the
 
increasing
 
need
 
for
short
 
-term
 
flexible
 
capacity
 
in
 
power
 
systems
 
with
 
a
 
high
share
 
of
 
renewables.
 
While
 
mobility
 
restrictions
 
affected
 
the
ability
 
to
 
perform
 
service
 
activities,
 
the
 
demand
 
for
 
services
held
 
up
 
reasonably
 
well
 
,
 
and
 
customers
 
continued
 
to
 
show
interest
 
in
 
long
 
-term
 
service
 
agreements.
 
Wärtsilä’s
 
market
 
share
 
in
 
the
 
up
 
to
 
500
 
MW
 
market
 
segment
was
 
stable
 
at
 
9%
 
(9),
 
while
 
global
 
orders
 
for
 
natural
 
gas
 
and
liquid
 
power
 
plants
 
increased
 
by
 
3%
 
to
 
16.6
 
GW
 
during
 
the
twelve
 
-month
 
period
 
ending
 
in
 
September
 
2020
 
(16.0
 
GW
 
at
the
 
end
 
of
 
June).
 
Global
 
orders
 
include
 
gas
 
turbine
 
and
Wärtsilä
 
orders
 
with
 
prime
 
movers
 
over
 
5
 
MW
 
in
 
size.
 
The
data
 
is
 
gathered
 
from
 
the
 
McCoy
 
Power
 
Report.
Order
 
intake
 
and
 
order
 
book
Wärtsilä’s
 
o
 
rder
 
intake
 
in
 
2020
 
decreased
 
by
 
18%
 
to
 
EUR
4,359
 
million
 
(5,327)
 
compared
 
to
 
the
 
previous
 
year
.
Uncertainty
 
related
 
to
 
the
 
COVID
 
-19
 
pandemic
 
and
 
its
 
long-
term
 
implications
 
weakened
 
demand
 
across
 
all
 
businesses.
Book
 
-to
 
-bill
 
was
 
0.95
 
(1.03).
 
Service
 
order
 
intake
 
decreased
by
 
16%
 
to
 
EUR
 
2,267
 
million
 
(2,683),
 
while
 
equipment
 
order
intake
 
decreased
 
by
 
21%
 
to
 
EUR
 
2,091
 
million
 
(2,644).
The
 
order
 
book
 
at
 
the
 
end
 
of
 
the
 
year
 
decreased
 
by
 
14%
 
to
EUR
 
5,057
 
million
 
(5,878).
 
Cancellations
 
during
 
the
 
year
 
were
largely
 
in
 
line
 
with
 
normal
 
low
 
levels.
 
Wärtsilä
 
has
implemented
 
stricter
 
requirements
 
for
 
the
 
inclusion
 
of
 
new
and
 
existing
 
projects
 
in
 
the
 
order
 
book.
 
This
 
resulted
 
in
 
orders
amounting
 
to
 
approximately
 
EUR
 
340
 
million
 
being
 
removed
from
 
the
 
order
 
book
 
during
 
the
 
year,
 
primarily
 
due
 
to
 
lack
 
of
progress
 
or
 
milestone
 
payments
 
not
 
being
 
received,
 
as
 
well
as
 
some
 
cancellations.
 
Wärtsilä’s
 
current
 
order
 
book
 
for
 
2021
deliveries
 
is
 
EUR
 
3,298
 
million
 
(
 
3,571
 
).
Net
 
sales
 
and
 
operating
 
result
Wärtsilä’s
 
n
 
et
 
sales
 
in
 
2020
 
decreased
 
by
 
11%
 
to
 
EUR
 
4,604
million
 
(5,170)
 
compared
 
to
 
the
 
previous
 
year.
 
Service
 
net
sales
 
decreased
 
by
 
10%
 
to
 
EUR
 
2,255
 
million
 
(2,505).
Equipment
 
net
 
sales
 
decreased
 
by
 
12%
 
to
 
EUR
 
2,349
 
million
(2,665).
 
Of
 
Wärtsilä’s
 
net
 
sales,
 
approximately
 
65%
 
was
 
EUR
denominated
 
and
 
20%
 
USD
 
denominated,
 
with
 
the
 
remainder
being
 
split
 
between
 
se
 
veral
 
currencies.
The
 
operating
 
result
 
amounted
 
to
 
EUR
 
234
 
million
 
(362)
 
or
5.1%
 
of
 
net
 
sales
 
(7.0).
The
 
result
 
was
 
burdened
 
by
 
a
 
decline
in
 
service
 
volumes,
 
COVID
 
-19
 
driven
 
cost
 
inflation,
 
and
weaker
 
fixed
 
cost
 
absorption.
The
 
comparable
 
operating
result
 
totalled
 
EUR
 
275
 
million
 
(457)
 
or
 
6.0%
 
of
 
net
 
sales
(8.8).
 
Items
 
affecting
 
comparability
 
comprised
costs
 
related
 
to
divestments
 
and
 
restructuring
 
programmes
of
 
EUR
 
41
 
million
(95).
 
The
 
comparable
 
adjusted
 
EBITA
 
amounted
 
to
 
EUR
 
308
million
 
(498)
 
or
 
6.7%
 
of
 
net
 
sales
 
(9.6).
 
Purchase
 
price
allocation
 
amortisation
 
amounted
 
to
 
EUR
 
33
 
million
 
(41).
Financial
 
items
 
amounted
 
to
 
EUR
 
-43
 
million
 
(-47).
 
Net
interest
 
totalled
 
EUR
 
-10
 
million
 
(
 
-
 
12).
 
Profit
 
before
 
taxes
amounted
 
to
 
EUR
 
191
 
million
 
(315).
 
Taxes
 
amounted
 
to
 
EUR
58
 
million
 
(97),
 
implying
 
an
 
effective
 
tax
 
rate
 
of
 
30.3%
 
(30.7).
Profit
 
for
 
the
 
financial
 
year
 
amounted
 
to
 
EUR
 
133
 
million
(218).
 
Earnings
 
per
 
share
 
totalled
 
0.23
 
euro
 
(0.37).
 
Return
 
on
investment
 
(ROI)
 
was
 
7.1%
 
(11.5),
 
while
 
return
 
on
 
equity
(ROE)
 
was
 
5.8%
 
(9.0).
wartsila-2020-12-31p4i4
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
wartsila-2020-12-31p4i3 wartsila-2020-12-31p4i2 wartsila-2020-12-31p4i1 wartsila-2020-12-31p4i0 wartsila-2020-12-31p4i5
T
 
his
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
F
 
inancial
 
review
 
0
150
300
450
600
750
2020
2021
2022
2023
2024
2025
2026
MEUR
0
50
100
150
200
250
300
21
22
23
24
25
26
27
28
29
30
31
31+
MEUR
Annual
 
repayments
 
of
 
long-term
 
loans
0,00
0,10
0,20
0,30
0,40
0,50
2016
2017
2018
2019
2020
 
Group
 
net
 
sales
 
development
 
 
Result
 
 
 
Megawatts
 
delivered
 
 
2020
 
2019
 
Change
 
Marine
 
Power
 
1,257
 
1,505
 
-
16%
 
Energy
 
1,172
 
2,072
 
-
43%
 
Wärtsilä
 
total
 
2,429
 
3,577
 
-
32%
 
By
joint
 
venture
 
274
 
432
 
-
37%
 
Deliveries
 
total
 
2,703
 
4,009
 
-
33%
 
 
 
*Restated
 
due
 
to
 
IFRS
 
15
*Restated
 
due
 
to
 
IFRS
 
15
 
Financing
 
and
 
cash
 
flow
Loans
Committed
 
revolving
 
credit
 
facilities
 
(end
 
of
 
period)
Wärtsilä’s
 
cash
 
flow
 
from
 
operating
 
activities
 
in
 
2020
increased
 
to
 
EUR
 
681
 
million
 
(232),
 
thanks
 
to
 
improved
working
 
capital.
 
Working
 
capital
 
decreased
 
to
 
EUR
 
257
million
 
at
 
the
 
end
 
of
 
the
 
year
 
(732),
 
driven
 
by
 
lower
inventories,
 
as
 
well
 
as
 
by
 
efforts
 
to
 
reduce
 
credit
 
risk
 
through
strengthening
 
the
 
collection
 
of
 
receivables.
Advances
received
 
totalled
 
EUR
 
452
 
million
 
(452).
 
Additionally,
 
EUR
 
38
million
 
of
 
advances
 
pertained
 
to
 
assets
 
held
 
for
 
sale.
 
Maturity
 
profiles
 
of
 
long
 
-
 
term
 
loans
Gearing
 
Wärtsilä
 
aims
 
to
 
ensure
 
sufficient
 
liquidity
 
at
 
all
 
times
 
through
efficient
 
cash
 
management
 
and
 
by
 
maintaining
 
the
 
availability
of
 
sufficient
 
committed
 
and
 
uncommitted
 
credit
 
lines.
Refinancing
 
risk
 
is
 
managed
 
by
 
having
 
a
 
balanced
 
and
sufficiently
 
long
 
loa
 
n
 
portfolio.
Wärtsilä
 
has
 
focused
 
on
 
further
strengthening
 
its
 
liquidity
 
reserves
 
during
 
the
 
year
 
in
response
 
to
 
the
 
COVID
 
-19
 
pandemic.
 
Measures
 
taken
include
 
the
 
extension
 
of
 
revolving
 
credit
 
facilities
 
and
 
the
negotiation
 
of
 
additional
 
loan
 
facilities.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
wartsila-2020-12-31p5i0
 
T
 
his
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
F
 
inancial
 
review
 
0
100
200
300
400
2016
2017
2018
2019
2020
MEUR
Related
 
to
 
acquisitions
Other
 
capital
 
expenditures
Depreciation,
 
amortisation,
 
and
 
impairment
 
Cash
 
and
 
cash
 
equivalents
 
amounted
 
to
 
EUR
 
919
 
million
 
at
the
 
end
 
of
 
the
 
year
 
(358).
 
Additionally,
 
EUR
 
14
 
million
 
of
 
cash
and
 
cash
 
equivalents
 
pertained
 
to
 
assets
 
held
 
for
 
sale
 
(
 
11
 
).
Unutilised
 
committed
 
credit
 
facilities
 
totalled
 
EUR
660
million
(640).
 
rtsilä
 
had
 
interest
 
-bearing
 
debt
 
totalling
 
EUR
 
1,327
 
million
at
 
the
 
end
 
of
 
the
 
year
 
(1,096).
 
The
 
total
 
amount
 
of
 
short
 
-term
debt
 
maturing
 
within
 
the
 
next
 
12
 
months
 
was
 
EUR
 
198
million.
 
Long
 
-
 
term
 
loans
 
amounted
 
to
 
EUR
 
1,129
 
million.
Net
 
interest
 
-bearing
 
debt
 
totalled
 
EUR
 
394
 
million
 
(726).
Gearing
 
was
 
0.18
 
(0.30),
 
while
 
the
 
solvency
 
ratio
 
was
 
38.1%
(40.8).
 
Equity
 
per
 
share
 
was
 
3.68
 
euro
 
(4.05).
Capital
 
expenditure
Capital
 
expenditure
 
related
 
to
 
intangible
 
assets
 
and
 
property,
plant,
 
and
 
equipment
 
amounted
 
to
 
EUR
 
115
 
million
 
(116)
 
in
2020.
 
Capital
 
expenditure
 
related
 
to
 
acquisitions
 
and
investments
 
in
 
securities
 
totalled
 
EUR
 
2
 
million
 
(6).
Depreciation,
 
amortisation,
 
and
 
impairment
 
amounted
 
to
 
EUR
174
 
million
 
(180).
In
 
2021,
 
capital
 
expenditure
 
related
 
to
 
intangible
 
assets
 
and
property,
 
plant,
 
and
 
equipment
 
is
 
expected
 
to
 
be
 
below
depreciation,
 
amortisation,
 
and
 
impairment.
 
Gross
 
capital
 
expenditure
Innovations,
 
research
 
and
 
development
Wärtsilä
 
is
 
committed
 
to
 
helping
 
minimise
 
the
 
environmental
footprint
 
of
 
the
 
maritime
 
and
 
energy
 
industries.
 
Investments
 
in
R&D
 
are
 
central
 
to
 
securing
 
Wärtsilä’s
 
future
 
positioning,
 
and
will
 
continue
 
despite
 
the
 
prevailing
 
market
 
uncertainty.
Developing
 
the
 
use
 
of
 
alternative,
 
commercially
 
viable,
 
and
environmentally
 
friendly
 
fuels
 
for
 
the
 
future
 
is
 
a
 
key
 
focus
area
 
of
 
research
 
and
 
development,
 
as
 
is
 
improving
 
the
connectivity,
 
efficiency,
 
sustainability,
 
and
 
safety
 
of
 
customer
operations
 
through
 
the
 
increased
 
use
 
of
 
digital
 
solutions.
 
With
its
 
lifecycle
 
solution
 
s
 
offering,
 
Wärtsilä
 
goes
 
beyond
 
mere
maintenance
 
and
 
operation
 
by
 
delivering
 
guaranteed
performance
 
based
 
on
 
mutually
 
agreed
 
target
 
levels.
Research
 
and
 
develo
 
pment
 
expenditure
 
totalled
 
EUR
 
153
million
 
(
 
164
 
)
 
in
 
2020
 
,
 
which
 
represents
 
3.3%
 
of
 
net
 
sales
(3.2
 
).
 
Marine
In
 
the
 
development
 
of
 
viable
 
future
 
fuels
 
Wärtsilä
 
,
 
in
 
close
cooperation
 
with
 
Knutsen
 
OAS
 
Shipping
 
AS,
 
Repsol,
 
and
Sustainable
 
Energy
 
Catapult
 
Centr
 
e
 
,
 
initiated
 
the
 
world’s
 
first
long
 
-term,
 
full
 
-scale
 
testing
 
of
 
ammonia
 
as
 
a
 
fuel
 
in
 
a
 
marine
4
 
-stroke
 
combustion
 
engine
 
in
 
2020.
 
The
 
testing
 
is
 
supported
by
 
a
 
NOK
 
20
 
million
 
grant
 
from
 
the
 
Norwegian
 
Research
Council
 
through
 
the
 
DEMO
 
2000
 
programme.
 
Key
 
developments
 
in
 
the
 
context
 
of
 
portfolio
 
enhancements
included
 
the
 
completion
 
of
 
full
 
-scale
 
testing
 
of
 
Wärtsilä’s
 
LPG
fuel
 
supply
 
system
 
with
 
a
 
full
 
-
 
sized
 
2
 
-stroke
 
marine
 
engine
burning
 
liquid
 
petroleum
 
gas
 
(LPG)
 
as
 
fuel.
 
The
 
tests
 
were
completed
 
by
 
retrofitting
 
the
 
system
 
on
 
four
 
very
 
large
 
gas
carriers
 
(VLGC)
 
owned
 
by
 
the
 
Norwegian
 
operator
 
BW
 
LPG.
In
 
addition,
 
Wärtsilä
 
launched
 
its
 
FuelFlex
 
Injection
 
Control
Unit
 
upgrade
 
solution
 
to
 
meet
 
the
 
requirements
 
of
 
operating
RT
 
-
 
flex
 
type
 
2
 
-
 
stroke
 
diesel
 
engines
 
with
 
both
 
residual
 
and
low
 
-viscosity
 
marine
 
fuels.
 
This
 
is
 
particularly
 
relevant
 
in
 
view
of
 
the
 
industry’s
 
increasing
 
use
 
of
 
low
 
-sulphur
 
-content
 
fuels
 
in
order
 
to
 
be
 
compliant
 
with
 
sulphur
 
emission
 
regulations.
Wärtsilä
 
also
 
introduced
 
its
 
Compact
 
Reliq
 
reliquefaction
plant,
 
designed
 
to
 
reliquefy
 
boil
 
-off
 
gas
 
(BOG)
 
onboard
 
gas
carriers
 
and
 
LNG
 
bunker
 
vessels
 
and
 
keep
 
the
 
cargo
 
cool
under
 
all
 
operational
 
conditions.
 
Thanks
 
to
 
its
 
compact
design,
 
the
 
system
 
can
 
be
 
installed
 
on
 
existing
 
vessels
without
 
extensive
 
modification
 
work.
 
During
 
the
 
year,
 
Wärtsilä
also
 
upgraded
 
the
 
power
 
output
 
of
 
the
 
Wärtsilä
 
31DF
 
dual-
fuel
 
engine,
 
further
 
heightening
 
the
 
engine’s
 
sustainability
factor
 
as
 
a
 
result
 
of
 
lower
 
greenhouse
 
gas
 
emissions,
 
while
allowing
 
a
 
reduction
 
in
 
both
 
installation
 
and
 
maintenance
costs.
As
 
the
 
shipping
 
industry
 
enters
 
a
 
new
 
era
 
of
 
innovation
 
and
unprecedented
 
efficiency,
 
Wärtsilä
 
is
 
using
 
high
 
levels
 
of
connectivity
 
and
 
digitalisation
 
to
 
bring
 
value
 
and
 
optimisation
to
 
all
 
marine
 
applications,
 
and
 
to
 
en
 
hance
 
the
 
efficiency,
sustainability
 
,
 
and
 
safety
 
of
 
customer
 
operations.
Achievements
 
in
 
the
 
field
 
of
 
smart
 
navigation
 
included
 
the
launch
 
of
 
Navi
 
-
 
Port,
 
a
 
new
 
solution
 
for
 
the
 
seamless
exchange
 
of
 
data
 
between
 
ship
 
and
 
shore
 
,
 
enabling
 
just
 
-in-
time
 
arrival
 
.
 
This
 
was
 
implemented
 
in
 
collaboration
 
with
Carnival
 
Maritime
 
and
 
the
 
Hamburg
 
Vessel
 
Coordination
Center
 
(HVCC).
 
Moreover,
 
Wärtsilä
 
Voyage
 
and
 
PSA
 
Marine
successfully
 
completed
 
initial
 
sea
 
trials
 
for
 
the
 
‘IntelliTug’
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
wartsila-2020-12-31p6i0
T
 
his
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
F
 
inancial
 
review
 
0,0
1,0
2,0
3,0
4,0
0
50
100
150
200
2016
2017
2018
2019
2020
%
MEUR
R&D
 
expenditure
Percentage
 
of
 
net
 
sales
project
 
in
 
Singapore,
 
thereby
 
proving
 
IntelliTug’s
 
capability
 
to
avoid
 
a
 
variety
 
of
 
obstacles,
 
including
 
virtual
 
and
 
real
 
-life
moving
 
vessels.
 
It
 
was
 
the
 
first
 
trial
 
to
 
use
 
the
 
Maritime
 
and
Port
 
Authority
 
of
 
Singapore
 
’s
 
(
 
MPA
 
)
 
Maritime
 
Autonomous
Surface
 
Ship
 
(
 
MASS
 
)
 
regulatory
 
sandbox,
 
which
 
was
established
 
to
 
facilitate
 
the
 
testing
 
of
 
MASS
 
and
 
other
autonomous
 
technologies
 
in
 
a
 
safe
 
and
 
controlled
environment
 
within
 
the
 
Port
 
of
 
Singapore.
 
Wärtsilä
 
also
successfully
 
trialled
 
the
 
Wärtsilä
 
SmartMove
 
Suite,
 
a
 
unique
pairing
 
of
 
sensor
 
tech
 
nology
 
with
 
navigation
 
systems
 
for
semi
 
-autonomous
 
ship
 
movement.
 
The
 
American
 
Steamship
Company
 
became
 
the
 
first
 
to
 
install
 
Wärtsilä
 
SmartMove
solutions
 
,
 
which
 
will
 
be
 
used
 
for
 
hands
 
-off
 
transit
 
along
 
the
Cuyahoga
 
River
 
in
 
Ohio,
 
US
 
A.
 
The
 
year
 
2020
 
also
 
saw
 
the
 
laun
 
ch
 
of
 
a
 
number
 
of
 
remote
support
 
services.
 
These
 
included
 
the
 
global
 
Smart
 
Support
Centre
 
service,
 
which
 
is
 
designed
 
to
 
deliver
 
operational
support
 
via
 
virtual
 
service
 
engineers
 
to
 
all
 
Wärtsilä
 
Voyage
equipment,
 
and
 
the
 
Assured
 
Operations
 
remote
 
support
se
 
rvice
 
for
 
Wärtsilä
 
4
 
-stroke
 
and
 
2
 
-stroke
 
engine
 
customers.
This
 
enables
 
technical
 
experts
 
to
 
assess
 
and
 
resolve
operational
 
issues
 
via
 
a
 
remote
 
connection
 
between
 
seagoing
vessels
 
and
 
Wärtsilä’s
 
Expertise
 
Centres.
 
During
 
the
 
year,
Wärtsilä
 
also
 
made
 
the
 
digital
 
predictive
 
maintenance
 
product
Expert
 
Insight
 
available
 
for
 
2
 
-stroke
 
engines
 
.
 
The
 
company
simultaneously
 
released
 
a
 
minimum
 
viable
 
product
 
for
 
remote
monitoring
 
of
 
scrubbers
 
to
 
provide
 
continuous
 
fleet
 
-wide
insight
 
into
 
vessel
 
compliance
 
and
 
scrubber
 
utilisation.
Moreover,
 
Wärtsilä
 
Voyage
 
expedited
 
the
 
launch
 
of
 
Wärtsilä’s
new
 
cloud
 
simulation
 
platform
 
to
 
enable
 
maritime
 
academies
and
 
seafarer
 
schools
 
to
 
continue
 
training
 
despite
 
the
lockdowns
 
and
 
distancing
 
imposed
 
by
 
the
 
COVID
 
-
 
19
outbreak.
 
The
 
solut
 
ion
 
was
 
selected
 
by
 
Anglo
 
-
 
Eastern
 
,
 
a
leading
 
ship
 
manage
 
ment
 
company,
 
to
 
provide
 
online
capacity
 
for
 
the
 
company’s
 
training
 
centres
 
in
 
India,
 
the
Philippines
 
,
 
and
 
Ukraine.
 
The
 
cloud
 
-based
 
simulators
 
are
being
 
used
 
for
 
navigation,
 
engineering,
 
and
 
liquid
 
cargo
handling
 
training.
Energy
In
 
line
 
with
 
its
 
aim
 
to
 
lead
 
the
 
transition
 
towards
 
a
 
100%
renewable
 
energy
 
future,
 
Wärtsilä
 
launched
 
the
 
Energy
Transition
 
Lab,
 
an
 
open
 
-data
 
platform
 
for
 
the
 
energy
 
industry
to
 
understand
 
the
 
impact
 
of
 
greater
 
utilisation
 
of
 
renewable
energy
 
and
 
the
 
effects
 
of
 
COVID
 
-19,
 
and
 
help
 
accelerate
 
the
energy
 
transition.
 
The
 
tool
 
provides
 
detailed
 
data
 
on
electricity
 
generation,
 
demand,
 
and
 
pricing
 
for
 
the
 
EU
countries
 
and
 
the
 
UK.
 
It
 
allows
 
users
 
to
 
model
 
how
 
systems
could
 
operate
 
in
 
the
 
future
 
with
 
more
 
renewables,
 
helping
 
to
pinpoint
 
problem
 
areas
 
and
 
highlighting
 
where
 
to
 
focus
policies
 
and
 
investments.
Key
 
achievements
 
in
 
the
 
advancement
 
of
 
engine
 
technology
included
 
Wärtsilä’s
 
highly
 
efficient
 
12
 
MWe
 
Wärtsilä
 
31SG
gas
 
-fuelled
 
generating
 
set
 
being
 
awarded
 
type
 
certification
 
by
the
 
classification
 
society
 
DNV
 
GL.
 
This
 
is
 
globally
 
the
 
largest
synchronous
 
generating
 
set
 
of
 
this
 
technology
 
to
 
have
 
been
awarded
 
the
 
unit
 
certificate
 
after
 
full
 
-scale
 
testing.
 
The
certification
 
verifies
 
the
 
design
 
and
 
engineering
 
standards
 
as
being
 
in
 
full
 
compliance
 
with
 
Germany’s
 
grid
 
code
requirements,
 
the
 
first
 
country
 
in
 
Europe
 
to
 
have
 
implemented
guidelines
 
for
 
grid
 
code
 
compliance,
 
although
 
other
 
countries
have
 
already
 
or
 
are
 
in
 
the
 
process
 
of
 
requiring
 
similar
compliance.
 
Wärtsilä
 
also
 
announced
 
during
 
the
 
year
 
that
 
it
 
is
developing
 
the
 
combustion
 
process
 
in
 
its
 
gas
 
engines
 
to
enable
 
them
 
over
 
time
 
to
 
burn
 
100%
 
hydrogen
 
fuel.
 
Wärtsilä
has
 
researched
 
hydrogen
 
as
 
a
 
fuel
 
for
 
20
 
years,
 
and
 
has
tested
 
its
 
engines
 
with
 
blends
 
of
 
up
 
to
 
60%
 
hydrogen
 
and
40%
 
natural
 
gas.
 
This
 
development
 
is
 
part
 
of
 
the
 
company’s
strategy
 
to
 
future
 
-proof
 
its
 
engine
 
technology
 
in
 
line
 
with
 
the
global
 
trend
 
towards
 
decarbonisation
 
of
 
the
 
energy
 
and
marine
 
markets.
 
In
 
addition
 
to
 
hydrogen,
 
other
 
potential
renewable
 
fuels
 
are
 
being
 
studied
 
for
 
future
 
applications.
Wärtsilä
 
engines
 
are
 
already
 
capable
 
of
 
combusting
 
100%
synthetic
 
carbon
 
-neutral
 
methane
 
and
 
methanol.
Developments
 
in
 
the
 
area
 
of
 
Power
 
-to
 
-
 
X
 
included
 
funding
granted
 
by
 
Business
 
Finland
 
for
 
the
 
X-Ahead
 
project,
 
as
 
well
as
 
an
 
agreement
 
with
 
Vantaa
 
Energy
 
Ltd.
 
regarding
 
a
 
joint
concept
 
feasibility
 
study
 
for
 
a
 
power
 
-to
 
-gas
 
facility
 
at
 
Vantaa
Energy’s
 
waste
 
-to
 
-energy
 
plant
 
in
 
the
 
city
 
of
 
Vantaa.
 
The
 
X-
Ahead
 
project
 
aims
 
at
 
developing
 
deep
 
expertise
 
in
 
both
 
the
technical
 
and
 
business
 
potential
 
of
 
Power
 
-to
 
-X,
 
which
 
will
 
be
used
 
to
 
promote
 
a
 
carbon
 
-neutral
 
economy
 
in
 
Finland.
 
It
 
will
also
 
act
 
as
 
a
 
base
 
for
 
defining
 
Wärtsilä’s
 
role
 
in
 
this
 
field
 
as
part
 
of
 
the
 
g
 
lobal
 
transition
 
to
 
carbon
 
-neutral
 
solutions.
Vantaa
 
Energy’s
 
power
 
-to
 
-
 
gas
 
facility
 
would
 
produce
 
carbon-
neutral
 
synthetic
 
biogas
 
using
 
carbon
 
dioxide
 
emissions
 
and
electricity
 
generated
 
at
 
the
 
waste
 
-to
 
-energy
 
plant.
 
The
purpose
 
of
 
the
 
joint
 
study
 
is
 
to
 
confirm
 
the
 
optimal
 
size
 
of
 
the
project
 
and
 
the
 
cost
 
of
 
synthetic
 
biogas
 
for
 
district
 
heating,
 
as
well
 
as
 
to
 
understand
 
the
 
boundary
 
conditions
 
for
 
project
feasibility.
Research
 
and
 
development
 
expenditure
 
Strategic
 
projects
In
 
February,
 
Wärtsilä
 
and
 
DNV
 
GL
 
agreed
 
to
 
work
 
together
 
to
contribute
 
to
 
the
 
marine
 
industry’s
 
ongoing
 
digital
transformation.
 
In
 
particular,
 
the
 
two
 
companies
 
wish
 
to
further
 
explore
 
the
 
potential
 
use
 
of
 
digital
 
technologies,
collaborative
 
data
 
sharing,
 
and
 
standardisation
 
to
 
enhance
the
 
performance
 
of
 
existing
 
products
 
and
 
services,
 
and
 
to
develop
 
new
 
ones.
 
The
 
project
 
will
 
examine
 
the
 
application
 
of
digital
 
technologies
 
in
 
areas
 
such
 
as
 
autonomous
 
ships,
T
 
his
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
F
 
inancial
 
review
 
advanced
 
remote
 
services,
 
new
 
bridge
 
technologies,
 
and
data
 
sharing.
 
Cyber
 
security
 
will
 
be
 
another
 
natural
 
area
 
of
co
 
-operation.
 
In
 
March,
 
Wärtsilä
 
together
 
with
 
a
 
consortium
 
of
 
six
 
other
industry
 
and
 
academic
 
partners,
 
was
 
awarded
 
EU
 
funding
 
for
a
 
major
 
project
 
named
 
SeaTech.
 
The
 
project
 
is
 
aimed
 
at
reducing
 
fuel
 
consumption
 
and
 
lowering
 
emission
 
levels
 
for
shipping
 
by
 
developing
 
ship
 
engine
 
and
 
propulsion
 
systems
to
 
enable
 
precise
 
control
 
of
 
the
 
engine
 
and
 
capturing
 
wave
energy
 
to
 
produce
 
extra
 
thrust.
 
Wärtsilä
 
also
 
signed
 
a
 
licence
and
 
co
 
-operation
 
agreement
 
covering
 
the
 
future
 
development,
sales,
 
and
 
servicing
 
of
 
gate
 
rudders
 
with
 
Kuribayashi
Steamship
 
in
 
Japan.
 
As
 
an
 
authorised
 
license
 
holder
 
and
partner,
 
Wärtsilä
 
intends
 
to
 
fully
 
integrate
 
gate
 
rudders
 
within
its
 
propulsion
 
product
 
designs
 
and
 
will
 
focus
 
on
 
global
markets
 
outside
 
Japan.
 
Gate
 
rudder
 
technology
 
lowers
 
fuel
consumption
 
and
 
reduces
 
emissions,
 
while
 
improving
manoeuvrability
 
and
 
course
 
stability
 
in
 
both
 
calm
 
and
 
rough
seas.
In
 
June,
 
Wärtsilä
 
joined
 
a
 
global
 
consortium
 
to
 
develop
 
the
Mayflower
 
Autonomous
 
ship
 
project,
 
which
 
will
 
enable
 
the
world’s
 
first
 
fully
 
autonomous,
 
unmanned
 
vessel
 
to
 
cross
 
the
Atlantic.
 
Wärtsilä
 
Voyage
 
will
 
equip
 
the
 
ship
 
with
 
the
 
Wärtsilä
RS24
 
system,
 
a
 
ground
 
-breaking
 
high
 
-speed,
 
high
 
-resolution
FMCW
 
K-
 
Band
 
radar
 
designed
 
to
 
provide
 
optimised
 
levels
 
of
situational
 
awareness,
 
especially
 
in
 
densely
 
populated
 
marine
environments.
 
Wärtsilä
 
also
 
joined
 
ING
 
Bank,
 
Engie,
 
and
 
the
Port
 
of
 
Rotterdam
 
Authority
 
to
 
form
 
Zero
 
Emission
 
Services
B.V.
 
(ZES),
 
an
 
enterprise
 
aimed
 
at
 
making
 
inland
 
waterway
shipping
 
more
 
sustainable.
 
The
 
concept
 
is
 
based
 
on
 
the
 
use
of
 
replaceable
 
battery
 
containers
 
charged
 
with
 
renewable
energy.
 
It
 
will
 
be
 
utilised
 
,
 
among
 
others,
 
by
 
the
 
Heineken
 
beer
company
 
and
 
is
 
supported
 
by
 
the
 
Dutch
 
Ministry
 
of
Infrastructure
 
and
 
Water
 
Managem
 
ent.
In
 
July,
 
Wärtsilä
 
joined
 
a
 
global
 
coalition
 
dedicated
 
to
accelerating
 
the
 
energy
 
transition
 
in
 
the
 
transport
 
and
logistics
 
industries,
 
together
 
with
 
a
 
cluster
 
of
 
market
 
-leading
companies
 
representing
 
a
 
broad
 
spectrum
 
of
 
industry
stakeholders.
 
The
 
aim
 
of
 
the
 
coalition
 
is
 
to
 
drive
 
the
development
 
of
 
energy
 
sources
 
and
 
technologies
 
in
 
order
 
to
curb
 
global
 
warming,
 
reduce
 
air
 
pollution,
 
and
 
protect
biodiversity.
 
The
 
members
 
will
 
pool
 
their
 
R&D
 
efforts
 
in
pursuit
 
of
 
three
 
key
 
goals:
 
unlocking
 
a
 
more
 
extensive
portfolio
 
of
 
clean
 
energy
 
sources,
 
lowering
 
energy
consumption
 
per
 
kilometre
 
-equivalent
 
for
 
transported
 
goods
 
,
and
 
eliminating
 
a
 
substantial
 
proportion
 
of
 
the
 
harmful
emissions
 
being
 
released
 
into
 
the
 
atmosphere.
In
 
October,
 
Wärtsilä
 
signed
 
a
 
Memorandum
 
of
 
Understanding
(MoU)
 
tied
 
to
 
a
 
license
 
and
 
c
 
o
 
-operation
 
agreement
 
with
 
the
UK
 
-based
 
Anemoi
 
Marine
 
Technologies
 
for
 
the
 
future
 
sales
and
 
servicing
 
of
 
rotor
 
sail
 
solutions
 
to
 
the
 
shipping
 
industry.
Rotor
 
s
 
ails
 
are
 
comprised
 
of
 
vertical
 
cylinders
 
which,
 
when
driven
 
to
 
rotate,
 
harness
 
the
 
renewable
 
power
 
of
 
the
 
wind
 
to
propel
 
ships.
 
These
 
highly
 
efficient
 
mechanical
 
sails
 
will
provide
 
additional
 
thrust
 
to
 
vessels
 
and
 
deliver
 
significant
 
fuel
and
 
emission
 
savings.
 
Wärtsilä
 
will
 
fully
 
integrate
 
Anemoi
Marine
 
Technologies’
 
rotor
 
s
 
ails
 
within
 
its
 
p
 
ropulsion
 
business
and
 
promote
 
the
 
solution
 
for
 
both
 
newbuild
 
projects
 
and
 
for
retrofitting
 
to
 
existing
 
ships.
In
 
December,
 
Wärtsilä
 
joined
 
the
 
CHEK
 
project
 
which
 
aims
 
to
achieve
 
zero
 
emission
 
s
 
shipping.
 
The
 
project
 
will
 
develop
 
and
demonstrate
 
a
 
wind
 
energy
 
optimised
 
bulk
 
carrier
 
,
 
and
 
a
hydrogen
 
powered
 
cruise
 
ship
 
equipped
 
with
 
a
 
combination
 
of
innovative
 
technologies
 
to
 
reduce
 
greenhouse
 
gas
 
emissions
by
 
99%,
 
achieve
 
at
 
least
 
50%
 
energy
 
savings
 
,
 
and
 
reduce
black
 
carbon
 
emissions
 
by
 
over
 
95%.
 
The
 
CHEK
 
partners
 
are
the
 
University
 
of
 
Vaasa
 
(coordinator),
 
Wärtsilä,
 
Cargill
International,
 
MSC
 
Cruises,
 
Lloyd’s
 
Register,
 
the
 
World
Maritime
 
University,
 
Silverstream
 
Technologies,
 
HASYTEC
Electronics,
 
Deltamarin,
 
Climeon
 
,
 
and
 
BAR
 
Technologies.
Capacity
 
adjustments
In
 
March,
 
Wärtsilä
 
announced
 
that
 
proactive
 
steps
 
would
 
be
taken
 
to
 
minimise
 
the
 
negative
 
business
 
impact
 
of
 
the
COVID
 
-19
 
pandemic
 
and
 
the
 
measures
 
initiated
 
to
 
contain
 
it.
These
 
include
 
d
 
reducing
 
working
 
hours
 
and
 
initiating
temporary
 
layoffs,
 
as
 
well
 
as
 
streamlining
 
hiring
 
and
minimising
 
the
 
use
 
of
 
external
 
personnel
 
and
 
consultants.
Discretionary
 
spending
 
was
 
also
 
reduced
 
and
 
non
 
-critical
development
 
projects
 
postponed.
 
Decisions
 
on
 
temporary
cost
 
reduction
 
actions
 
were
 
taken
 
in
 
key
 
countries
 
where
such
 
measures
 
were
 
deemed
 
necessary.
 
The
 
actions
 
taken
resulted
 
in
 
temporary
 
cost
 
savings
 
of
 
approximately
 
EUR
 
100
million
 
being
 
recognised
 
during
 
the
 
year,
 
which
 
was
 
in
 
line
with
 
initial
 
expectations
.
The
 
market
 
situation
 
is
 
continuously
monitored
 
,
 
and
 
further
 
actions
 
will
 
be
 
taken
 
as
 
needed.
 
Changes
 
in
 
organisational
 
structure
Wärtsilä’s
 
new
 
organisational
 
structure
 
became
 
operational
on
 
1
 
July
 
2020.
 
With
 
the
 
new
 
structure,
 
Wärtsilä
 
aims
 
to
accelerate
 
strategy
 
execution
 
and
 
drive
 
long
 
-term
performance.
 
Marine
 
Power,
 
Marine
 
Systems,
 
and
 
Energy
 
will
focus
 
on
 
delivering
 
profitable
 
growth
 
by
 
strengthening
 
their
offering
 
of
 
solutions
 
and
 
lifecycle
 
value
 
propositions.
Established
 
through
 
the
 
combination
 
of
 
acquisitions
 
during
the
 
past
 
few
 
years,
 
notably
 
Eniram
 
and
 
more
 
recently
Transas,
 
Voyage
 
positions
 
Wärtsilä
 
as
 
a
 
market
 
leader
 
in
digital
 
solutions
 
for
 
the
 
commercial
 
marine
 
industry.
 
Voyage’s
focus
 
will
 
be
 
on
 
scaling
 
and
 
developing
 
the
 
business,
 
with
 
the
support
 
of
 
continued
 
investments
 
in
 
R&D,
 
sales
 
and
marketing,
 
in
 
order
 
to
 
create
 
a
 
basis
 
for
 
sustainable,
profitable
 
growth
 
over
 
the
 
long
 
-term.
 
Portfolio
 
Business
 
is
 
run
as
 
an
 
independent
 
entity,
 
with
 
the
 
objective
 
of
 
unlocking
 
the
value
 
of
 
business
 
units
 
that
 
are
 
not
 
central
 
to
 
Wärtsilä’s
strategy.
 
Personnel
Wärtsilä
 
had
 
17,792
 
(18,795)
 
employees
 
at
 
the
 
end
 
of
 
the
year.
 
On
 
average,
 
the
 
number
 
of
 
personnel
 
totalled
 
18,307
(19,110)
 
in
 
the
 
year
 
of
 
2020
 
.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
wartsila-2020-12-31p8i0
T
 
his
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
F
 
inancial
 
review
 
0
5
 
000
10
 
000
15
 
000
20
 
000
2016
2017
2018
2019
2020
Personnel
 
at
 
the
 
end
 
of
 
the
 
financial
 
period
Personnel
 
on
 
average
Personnel
 
in
 
Finland
Of
 
Wärtsilä’s
 
total
 
number
 
of
 
employees,
 
21%
 
(20)
 
were
located
 
in
 
Finland
 
and
 
41%
 
(42)
 
elsewhere
 
in
 
Europe.
Personnel
 
employed
 
in
 
Asia
 
represented
 
22%
 
(23)
 
of
 
the
total,
 
personnel
 
in
 
the
 
Americas
 
11%
 
(11),
 
and
 
personnel
 
in
other
 
countries
 
5%
 
(4).
Personnel
Changes
 
in
 
management
 
In
 
addition
 
to
 
the
 
appointment
 
of
 
a
 
new
 
President
 
and
 
CEO,
the
 
below
 
changes
 
in
 
Wärtsilä’s
 
Board
 
of
 
Management
 
took
place
 
during
 
2020
 
:
Following
 
the
 
announcement
 
that
 
Wärtsilä’s
 
Marine
 
Business
would
 
be
 
reorganised
 
into
 
three
 
independent
 
businesses,
Roger
 
Holm
 
(b.
 
1972,
 
M.Sc.
 
Economics),
 
previously
 
the
President
 
of
 
Wärtsilä
 
Marine
 
Business
 
and
 
Executive
 
Vice
President,
 
was
 
appointed
 
President
 
of
 
Wärtsilä
 
Marine
 
Power
and
 
Executive
 
Vice
 
President
 
as
 
of
 
5
 
March
 
2020,
 
Tamara
 
de
Gruyter
 
(b.
 
1972,
 
B.Sc.
 
Shipbuilding
 
Engineering)
 
was
appointed
 
President
 
of
 
Wärtsilä
 
Marine
 
Systems
 
and
Executive
 
Vice
 
President
 
as
 
of
 
5
 
March
 
2020,
 
and
 
Sean
Fernback
 
(b.
 
1963,
 
Dipl.
 
Electronics
 
Engineering)
 
was
appointed
 
President
 
of
 
Wärtsilä
 
Voyage
 
and
 
Executive
 
Vice
President
 
as
 
of
 
4
 
May
 
2020.
In
 
July,
 
Sushil
 
Purohit
 
(b.
 
1972,
 
B.Sc.
 
(Eng.),
 
MBA)
 
was
appointed
 
President
 
of
 
Wärtsilä
 
Energy
 
and
 
Executive
 
Vice
President
 
as
 
of
 
3
 
August
 
2020.
 
He
 
replaced
 
Marco
 
Wirén,
who
 
left
 
Wärtsilä
 
on
 
31
 
August
 
2020
 
for
 
a
 
position
 
outside
 
the
Group.
 
Non
 
-
 
financial
 
report
 
Increasing
 
environmental
 
awareness
 
is
 
resulting
 
in
fundamental
 
changes
 
in
 
both
 
the
 
marine
 
and
 
energy
industries.
 
Thanks
 
to
 
its
 
various
 
technologies
 
and
 
specialised
services,
 
Wärtsilä
 
is
 
well
 
positioned
 
to
 
reduce
 
exhaust
emissions
 
and
 
the
 
use
 
of
 
natural
 
resources,
 
as
 
well
 
as
 
to
support
 
its
 
customers
 
in
 
preparing
 
for
 
new
 
regulatory
requirements.
 
Wärtsilä’s
 
R&D
 
efforts
 
continue
 
to
 
focus
 
on
 
the
development
 
of
 
advanced
 
environmental
 
technologies
 
and
solutions.
 
The
 
company
 
is
 
committed
 
to
 
supporting
 
the
 
UN
Global
 
Compact
 
and
 
its
 
principles
 
with
 
respect
 
to
 
human
rights,
 
labour,
 
the
 
environment,
 
and
 
anti
 
-corruption.
 
Wärtsilä
is
 
also
 
committed
 
to
 
supporting
 
the
 
UN
 
Sustainable
Development
 
Goals
 
that
 
deal
 
with
 
issues
 
to
 
which
 
Wärtsilä
contributes
 
in
 
a
 
positive
 
way.
 
Such
 
goals
 
include
 
those
relate
 
d
 
to
 
clean
 
energy,
 
a
 
low
 
-carbon
 
marine
 
ecosystem,
 
and
responsible
 
business
 
conduct.
 
Responsible
 
business
 
conduct
 
The
 
Wärtsilä
 
Code
 
of
 
Conduct
 
defines
 
common
 
rules
 
for
 
all
employees,
 
and
 
provides
 
guidance
 
on
 
Wärtsilä’s
 
approach
 
to
responsible
 
business
 
practices.
 
The
 
Code
 
of
 
Conduct
 
is
complemented
 
by
 
group
 
-wide
 
policies,
 
including
 
the
 
quality,
environmental,
 
health
 
and
 
safety
 
policy,
 
the
 
corporate
 
policy
on
 
equal
 
opportunities
 
and
 
fair
 
employment
 
practices,
 
as
 
well
as
 
policies
 
related
 
to
 
anti
 
-corruption,
 
compliance
 
reporting,
and
 
sourcing
 
and
 
purchasing.
 
Wärtsilä
 
takes
 
an
 
active
 
approach
 
to
 
the
 
application
 
of
 
the
Code
 
of
 
Conduct
 
and
 
promotes
 
its
 
implementation
 
through
the
 
effective
 
communication
 
of
 
its
 
contents
 
to
 
its
 
employees.
Wärtsilä
 
monitors
 
the
 
application
 
of
 
the
 
Code
 
internally
 
to
ensure
 
understanding
 
and
 
commitment
 
throughout
 
the
organisation.
 
At
 
the
 
end
 
of
 
2020,
 
17,039
 
employees,
 
covering
9
 
6
 
%
 
of
 
the
 
total
 
number
 
of
 
employees,
 
had
 
participated
 
in
 
the
Code
 
of
 
Conduct
 
training
 
programme.
 
Suppliers
 
and
 
business
 
partners
 
are
 
an
 
integral
 
part
 
of
 
the
total
 
value
 
chain
 
of
 
the
 
products
 
and
 
services
 
of
 
Wärtsilä.
They
 
are
 
expected
 
to
 
conduct
 
their
 
businesses
 
in
 
compliance
with
 
the
 
same
 
high
 
legal
 
and
 
ethical
 
standards
 
and
 
business
practices
 
as
 
Wärtsilä.
 
Information
 
on
 
Wärtsilä’s
 
requirements
is
 
included
 
in
 
supplier
 
agreement
 
templates.
Environmental
 
performance
 
Wärtsilä’s
 
main
 
contribution
 
to
 
improved
 
environmental
performance
 
lies
 
in
 
providing
 
its
 
customers
 
with
 
reliable
 
and
safe
 
technologies
 
and
 
services,
 
which,
 
in
 
addition
 
to
 
enabling
environmental
 
compliance,
 
support
 
the
 
sustainable
development
 
of
 
the
 
marine
 
and
 
energy
 
industries.
 
Wärtsilä’s
products
 
and
 
solutions
 
are
 
designed
 
to
 
operate
 
for
 
up
 
to
 
30
years.
 
Therefore,
 
focusing
 
R&D
 
efforts
 
on
 
improving
 
the
product
 
or
 
system
 
level
 
performance
 
is
 
crucial,
 
as
 
is
 
adopting
a
 
lifecycle
 
approach
 
to
 
performance
 
optimisation.
 
In
 
addition
to
 
improving
 
the
 
environmental
 
performance
 
of
 
its
 
product
 
s
and
 
solutions,
 
Wärtsilä
 
also
 
continuously
 
monitors
 
the
 
impact
caused
 
by
 
its
 
own
 
activities
 
and
 
targets
 
reduced
 
energy
consumption
 
in
 
its
 
facilities.
 
Wärtsilä's
 
quality,
 
environmental,
 
health
 
and
 
safety
 
policy
sets
 
principles
 
for
 
managing
 
the
 
environmental
 
impacts
 
of
Wärtsilä’s
 
products
 
and
 
services.
 
The
 
potential
 
risks
 
related
to
 
environmental
 
matters
 
and
 
climate
 
change
 
are
 
in
 
the
 
areas
of
 
regulatory
 
emission
 
restrictions
 
and
 
changes
 
in
 
customer
attitudes
 
to
 
using
 
combustion
 
engines
 
and
 
fossil
 
fuels.
 
Risks
are
 
managed
 
by
 
focusing
 
on
 
product
 
efficiency
 
improvement
and
 
emission
 
reduction
 
in
 
R&D
 
activities,
 
as
 
well
 
as
 
by
developing
 
a
 
wide
 
product
 
offering,
 
including
 
technologies
related
 
to
 
waste
 
reduction,
 
noise
 
abatement,
 
and
 
effluent
 
and
T
 
his
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
F
 
inancial
 
review
 
ballast
 
water
 
treatment
 
.
 
During
 
2020,
 
R&D
 
investments
totalled
 
EUR
 
153
 
million,
 
w
 
hich
 
represents
 
3.3%
 
of
 
net
 
sales.
The
 
majority
 
of
 
these
 
investments
 
targeted
 
improved
environmental
 
performance.
 
Significant
 
achievements
 
related
to
 
sustainable
 
innovation
 
included
 
the
 
progress
 
made
 
in
developing
 
engine
 
technology
 
to
 
burn
 
zero
 
-carbon
 
fuels.
 
For
the
 
marine
 
markets,
 
Wärtsilä
 
launched
 
several
 
solutions
 
in
support
 
of
 
its
 
Smart
 
Marine
 
Ecosystem
 
vision,
 
including
solutions
 
for
 
smart
 
navigation,
 
a
 
number
 
of
 
remote
 
support
services,
 
as
 
well
 
as
 
a
 
cloud
 
simulation
 
platform
 
enabling
remote
 
training.
 
In
 
the
 
energy
 
sector,
 
Wärtsilä
 
introduced
 
the
GridSolv
 
Quantum
 
energy
 
storage
 
system,
 
a
 
fully
 
integrated
modular
 
and
 
compact
 
solution
 
that
 
enables
 
the
 
rapid
deployment
 
of
 
cost
 
-effective
 
energy
 
storage,
 
as
 
well
 
as
 
data-
based
 
solutions
 
to
 
better
 
understand
 
the
 
impact
 
of
 
the
 
energy
transition.
Social
 
and
 
employee
 
matters
 
Wärtsilä
 
is
 
a
 
responsible
 
employer,
 
offering
 
employees
 
a
workplace
 
where
 
openness,
 
respect,
 
trust,
 
equal
opportunities,
 
and
 
scope
 
for
 
personal
 
development
 
prevail.
Wärtsilä
 
is
 
a
 
signatory
 
of
 
the
 
UN
 
Global
 
Compact
 
initiative
and
 
supports
 
the
 
work
 
-related
 
rights
 
defined
 
by
 
the
International
 
Labour
 
Organization
 
(ILO).
 
Wärtsilä's
 
corporate
policy
 
on
 
equal
 
opportunities
 
and
 
fair
 
employment
 
practices
creates
 
a
 
common
 
framework
 
for
 
employee
 
practices
 
in
 
all
Wärtsilä
 
companies.
 
People
 
management
 
processes,
 
tools,
and
 
ways
 
of
 
working
 
are
 
developed
 
to
 
ensure
 
consistency
across
 
national
 
and
 
organisational
 
boundaries.
 
Wärtsilä
 
has
 
a
global
 
job
 
grading
 
system
 
and
 
rewarding
 
principles
 
to
 
ensure
transparency
 
and
 
fairness
 
for
 
all
 
employees,
 
which
 
are
followed
 
by
 
all
 
the
 
entities
 
in
 
Wärtsilä
 
globally.
 
The
 
objective
 
of
 
Wärtsilä’s
 
people
 
management
 
strategy
 
is
 
to
ensure
 
that
 
the
 
businesses
 
have
 
the
 
required
 
resources,
 
and
skilled
 
and
 
motivated
 
people
 
at
 
their
 
disposal.
 
In
 
order
 
to
develop
 
their
 
competences,
 
employees
 
are
 
offered
 
a
 
wide
variety
 
of
 
internal
 
training
 
courses,
 
including
 
topics
 
like
technology,
 
health
 
and
 
safety,
 
language
 
and
 
culture,
 
project
management,
 
environment,
 
security,
 
and
 
leadership.
 
The
avera
 
ge
 
number
 
of
 
learning
 
days
 
was
 
1.1
 
per
 
employee
 
in
2020.
 
Wärtsilä
 
aims
 
at
 
offering
 
its
 
employees
 
and
 
contractors
 
a
hazard
 
-free
 
working
 
environment,
 
and
 
at
 
minimising
 
the
health
 
and
 
safety
 
risks
 
associated
 
with
 
the
 
use
 
of
 
its
 
products
and
 
services.
 
The
 
company’s
 
occupational
 
health
 
and
 
safety
principles
 
are
 
defined
 
in
 
the
 
Code
 
of
 
Conduct,
 
the
 
quality,
environmental,
 
health
 
and
 
safety
 
(QEHS)
 
policy,
 
and
 
in
 
the
directive
 
on
 
environment,
 
health,
 
and
 
safety
 
(EHS).
 
Wärtsilä's
units
 
are
 
required
 
to
 
have
 
a
 
management
 
system
 
in
 
place
 
that
conforms
 
to
 
the
 
QEHS
 
Policy
 
and
 
the
 
EHS
 
directive.
 
In
addition
 
to
 
the
 
management
 
system,
 
Wärtsilä
 
companies
apply
 
occupational
 
health
 
and
 
safety
 
programmes
 
as
 
required
by
 
local
 
legislation.
 
Wärtsilä’s
 
aim
 
is
 
to
 
reach
 
a
 
long
 
-term
 
goal
of
 
zero
 
injuries.
 
In
 
2020,
 
the
 
corporate
 
lost
 
-time
 
injury
frequency
 
rate
 
was
 
2.03
 
(2.25).
 
Respect
 
for
 
human
 
rights
Wärtsilä
 
supports
 
and
 
respects
 
basic
 
human
 
values
 
as
outlined
 
in
 
the
 
UN's
 
universal
 
declaration
 
of
 
human
 
rights.
Wärtsilä
 
is
 
also
 
a
 
signatory
 
of
 
the
 
UN
 
Global
 
Compact
 
and
 
is
thereby
 
committed
 
to
 
its
 
principles
 
with
 
respect
 
to
 
human
rights,
 
labour,
 
the
 
environment
 
,
 
and
 
anti
 
-corruption.
 
No
employee
 
is
 
allowed
 
to
 
take
 
any
 
action
 
that
 
violates
 
these
human
 
rights
 
principles,
 
either
 
directly
 
or
 
indirectly.
 
Wärtsilä
does
 
not
 
accept
 
the
 
use
 
of
 
forced
 
labour
 
or
 
child
 
labour
 
in
 
any
form.
 
Human
 
and
 
labour
 
rights
 
are
 
a
 
part
 
of
 
the
 
Code
 
of
Conduct
 
training
 
material,
 
and
 
are
 
included
 
in
 
Wärtsilä’s
policy
 
on
 
equal
 
opportunities
 
and
 
fair
 
employment
 
practices
as
 
well
 
as
 
in
 
the
 
company’s
 
supplier
 
handbook.
 
Anti
 
-
 
corruption
 
and
 
bribery
 
matters
Wärtsilä's
 
Code
 
of
 
Conduct,
 
anti
 
-corruption
 
policy,
 
and
 
broker
directive
 
expressly
 
prohibit
 
the
 
company
 
and
 
its
 
employees
from
 
offering
 
or
 
accepting
 
any
 
kind
 
of
 
benefit
 
considered
 
a
bribe
 
and
 
from
 
taking
 
actions
 
that
 
could
 
give
 
rise
 
to
 
a
 
conflict
of
 
interest
 
or
 
breach
 
of
 
loyalty.
 
The
 
instructions
 
make
 
it
compulsory
 
to
 
comply
 
with
 
anti
 
-corruption
 
laws
 
of
 
all
 
the
countries
 
in
 
which
 
Wärtsilä
 
does
 
or
 
intends
 
to
 
do
 
business
and
 
urge
 
the
 
reporting
 
of
 
any
 
cases
 
of
 
corruption
 
and
 
bribery.
 
Wärtsilä
 
is
 
aware
 
of
 
the
 
risk
 
of
 
being
 
subject
 
to
 
fraud
 
by
external
 
business
 
parties,
 
and
 
that
 
the
 
risk
 
of
 
corruption
 
and
fraud
 
is
 
heightened
 
in
 
many
 
markets
 
where
 
the
 
company
operates.
 
Therefore
 
,
 
full
 
compliance
 
with
 
a
 
stringent
 
anti-
corruption
 
regime
 
is
 
required
 
of
 
all
 
employees.
 
An
 
extensive
training
 
programme
 
is
 
in
 
place
 
for
 
personnel
 
on
 
anti-
corruption
 
principles
 
and
 
applicable
 
legislation
 
as
 
well
 
as
 
the
relevant
 
company
 
policies
 
and
 
procedur
 
es.
 
By
 
the
 
end
 
of
2020,
 
93%
 
of
 
Wärtsilä’s
 
employees
 
had
 
participated
 
in
 
anti-
corruption
 
trainings.
 
Employees
 
are
 
encouraged
 
to
 
provide
feedback
 
and
 
communicate
 
suspected
 
misconduct
 
to
 
line
management
 
or
 
directly
 
to
 
the
 
Compliance,
 
L
 
egal
 
A
 
ffairs
 
,
 
or
Interna
 
l
 
Audit
 
function.
 
Wärtsilä
 
also
 
has
 
a
 
dedicated
 
tool
through
 
which
 
employees
 
can
 
report
 
infringements.
Reporting
 
segments
Wärtsilä
 
Marine
 
Power
Marine
 
Power’s
 
o
 
rder
 
intake
 
in
 
2020
 
decreased
 
by
 
23%
 
to
EUR
 
1,737
 
million
 
(2,247)
 
compared
 
to
 
the
 
previous
 
year.
Book
 
-to
 
-bill
 
was
 
0.99
 
(1.17).
 
Service
 
order
 
intake
 
decreased
by
 
19%
 
to
 
EUR
 
1,070
 
million
 
(1,315),
 
with
 
the
 
largest
 
decline
seen
 
in
 
the
 
cruise
 
segment
 
where
 
vessel
 
utilisation
 
remained
low
 
throughout
 
the
 
year.
 
Equipment
 
order
 
intake
 
decreased
by
 
28%
 
to
 
EUR
 
667
 
million
 
(931).
 
Demand
 
was
 
the
 
highest
 
in
the
 
merchant
 
segment
 
which,
 
including
 
both
 
traditional
merchant
 
vessels
 
and
 
gas
 
carriers,
 
represented
 
35%
 
and
42%
 
of
 
the
 
order
 
intake
 
of
 
equipment
 
and
 
services,
respectively.
 
Orders
 
received
 
from
 
this
 
segment
 
included
 
a
sizeable
 
order
 
to
 
supply
 
dual
 
-fuel
 
engines
 
to
 
six
 
new
 
LNG
vessels
 
and
 
a
 
contract
 
to
 
supply
 
a
 
fully
 
integrated
 
Wärtsilä
hybrid
 
solution
 
for
 
Misje
 
Rederi’s
 
three
 
newbuild
 
eco
 
-friendly
5,000
 
DWT
 
bulk
 
carriers.
 
Other
 
noteworthy
 
orders
 
included
 
a
contract
 
to
 
supply
 
the
 
engines
 
and
 
a
 
range
 
of
 
electric
solutions
 
for
 
two
 
new
 
ferries
 
under
 
construction
 
for
 
Finnlines,
as
 
well
 
as
 
a
 
contract
 
to
 
supply
 
Wärtsilä
 
14
 
EUR
 
Stage
 
V
T
 
his
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
F
 
inancial
 
review
 
compliant
 
engines
 
and
 
related
 
emissions
 
control
 
after-
treatment
 
systems
 
for
 
two
 
new
 
passenger
 
ferries
 
being
 
built
for
 
operation
 
between
 
Switzerland
 
and
 
France.
 
The
 
order
book
 
at
 
the
 
end
 
of
 
the
 
year
 
decreased
 
by
 
9%
 
to
 
EUR
 
1,839
million
 
(2,019).
 
Net
 
sales
 
decreased
 
by
 
9%
 
to
 
EUR
 
1,748
 
million
 
(1,923)
compared
 
to
 
the
 
previous
 
year.
 
Service
 
net
 
sales
 
decreased
by
 
14%
 
to
 
EUR
 
1,096
 
million
 
(1,279),
 
while
 
equipment
 
net
sales
 
increased
 
by
 
1%
 
to
 
EUR
 
652
 
million
 
(643).
 
The
comparable
 
operating
 
result
 
amounted
 
to
 
EUR
 
137
 
million
(273)
 
or
 
7.8%
 
of
 
net
 
sales
 
(14.2).
The
 
result
 
was
 
burdened
 
by
the
 
COVID
 
-19
 
related
 
decline
 
in
 
the
 
service
 
business
 
,
 
as
 
well
as
 
by
 
weaker
 
absorption
 
of
 
fixed
 
costs
 
and
 
lower
 
utilisation.
 
Wärtsilä
 
Marine
 
Systems
Marine
 
Systems’
 
o
 
rder
 
intake
 
in
 
2020
 
decreased
 
by
 
28%
 
to
EUR
 
539
 
million
 
(754
 
)
 
compared
 
to
 
the
 
previous
 
year
,
 
as
reduced
 
fuel
 
spreads
 
scaled
 
back
 
scrubber
 
investments
.
Book
 
-to
 
-bill
 
was
 
0.67
 
(0.79).
 
Service
 
order
 
intake
 
decreased
by
 
11%
 
to
 
EUR
 
205
 
million
 
(230).
 
Equipment
 
order
 
intake
decreased
 
by
 
36%
 
to
 
EUR
 
334
 
million
 
(523).
 
Noteworthy
orders
 
received
 
during
 
the
 
year
 
included
 
the
 
first
 
order
 
for
 
the
Compact
 
Reliq
 
reliquefaction
 
plant,
 
a
 
system
 
designed
 
to
reliquefy
 
boil
 
-off
 
gas
 
(BOG)
 
onboard
 
gas
 
carriers
 
and
 
LNG
bunker
 
vessels
 
and
 
keep
 
the
 
cargo
 
cool
 
under
 
all
 
operational
conditions.
 
Wärtsilä
 
also
 
received
 
a
 
major
 
contract
 
to
 
supply
and
 
construct
 
a
 
plant
 
for
 
the
 
production
 
of
 
CO
2
-neutral
 
liquid
transport
 
fuels,
 
with
 
a
 
capacity
 
of
 
approximately
 
100,000
 
tons
per
 
year
 
to
 
be
 
located
 
in
 
Cologne,
 
Germany.
 
The
 
order
 
book
at
 
the
 
end
 
of
 
the
 
year
 
decreased
 
by
 
31%
 
to
 
EUR
 
857
 
million
(1,232
)
 
due
 
to
the
 
shortage
 
of
 
scrubber
 
orders.
Net
 
sales
 
decreased
 
by
 
15%
 
to
 
EUR
 
808
 
million
 
(952)
compared
 
to
 
the
 
previous
 
year.
 
Service
 
net
 
sales
 
increased
by
 
8%
 
to
 
EUR
 
219
 
million
 
(202),
 
while
 
equipment
 
net
 
sales
decreased
 
by
 
22%
 
to
 
EUR
 
588
 
million
 
(750).
 
The
 
comparable
operating
 
result
 
amounted
 
to
 
EUR
 
83
 
million
 
(60)
 
or
 
10.3%
 
of
net
 
sales
 
(6.3).
 
The
 
operating
 
result
 
for
 
the
 
comparison
period
 
was
 
weakened
 
by
 
charges
 
for
 
cost
 
overruns
 
in
 
certain
gas
 
solution
 
projects.
 
Wärtsilä
 
Voyage
Voyage’s
 
o
 
rder
 
intake
 
in
 
20
 
20
 
decreased
 
by
 
16%
 
to
 
EUR
 
262
million
 
(310)
 
compared
 
to
 
the
 
previous
 
year.
 
Book
 
-to
 
-bill
 
was
1.06
 
(1.11).
 
Service
 
order
 
intake
 
decreased
 
by
 
22%
 
to
 
EUR
92
 
million
 
(117),
 
while
 
equipment
 
order
 
intake
 
decreased
 
by
12%
 
to
 
EUR
 
170
 
million
 
(193).
While
 
COVID
 
-19
 
put
 
pressure
on
 
orders
 
received
 
from
 
the
 
cruise
 
industry,
 
order
 
intake
 
for
fleet
 
optimisation
 
solutions
 
developed
 
well
 
and
 
Wärtsilä
 
also
received
 
contracts
 
for
 
major
 
newbuild
 
projects
 
in
 
other
segments.
 
Highlights
 
of
 
the
 
year
 
included
 
a
 
contract
 
with
UltraShip
 
Denmark
 
to
 
install
the
 
cloud
 
-based
 
Wärtsilä
 
Fleet
Operations
 
Solution
 
(
FOS
 
)
 
across
 
their
 
entire
 
fleet
 
in
 
a
 
move
that
 
will
 
enable
 
direct
 
and
 
real
 
-time
 
connection
 
between
shore
 
and
 
vessel
 
systems
 
for
 
collaborative
 
voyage
 
planning
and
 
execution.
The
 
order
 
book
 
at
 
the
 
end
 
of
 
the
 
year
 
was
stable
 
at
 
EUR
 
275
 
million
 
(274).
Net
 
sales
 
decreased
 
by
 
12%
 
to
 
EUR
 
248
 
million
 
(280)
compared
 
to
 
the
 
previous
 
year.
The
 
decline
 
was
 
primarily
 
due
to
 
the
 
COVID
 
-19
 
pandemic,
 
which
 
has
 
resulted
 
in
 
project
postponements
 
and
 
lower
 
transactional
 
service
 
business.
Service
 
net
 
sales
 
decreased
 
by
 
18%
 
to
 
EUR
 
85
 
million
 
(103),
while
 
equipment
 
net
 
sales
 
decreased
 
by
 
8%
 
to
 
EUR
 
163
million
 
(177).
 
The
 
comparable
 
operating
 
result
 
amounted
 
to
EUR
 
-
 
41
 
million
 
(-31)
 
or
 
-16.5%
 
of
 
net
 
sales
 
(
 
-1
 
1.2).
 
The
result
 
was
 
negatively
 
impacted
 
by
 
lower
 
sales
 
volumes
 
and
 
a
less
 
favourable
 
service
 
mix.
 
In
 
addition,
 
investments
 
in
 
digital
competences
 
have
 
been
 
increased
 
to
 
further
 
accelerate
 
the
execution
 
of
 
Wärtsilä’s
 
Smart
 
Marine
 
strategy.
 
In
 
both
 
the
repo
 
rting
 
and
 
the
 
comparison
 
period,
 
the
 
operating
 
result
 
was
burdened
 
by
 
amortisation
 
resulting
 
from
 
various
 
acquisitions.
Wärtsilä
 
Energy
 
Energy’s
 
o
 
rder
 
intake
 
in
 
2020
 
decreased
 
by
 
7%
 
to
 
EUR
 
1,653
million
 
(1,769
 
)
 
compared
 
to
 
the
 
previous
 
year.
 
Book
 
-
 
to
 
-bill
was
 
1.02
 
(0.99).
 
Service
 
order
 
intake
 
decreased
 
by
 
9%
 
to
EUR
 
840
 
million
 
(920),
 
while
 
equipment
 
order
 
intake
decreased
 
by
 
4%
 
to
 
EUR
 
813
 
million
 
(849).
 
Demand
 
for
equipment
 
was
 
evenly
 
split
 
across
 
geographical
 
areas.
Noteworthy
 
equipment
 
orders
 
received
 
during
 
the
 
year
included
 
a
 
200
 
MW
 
flexible
 
baseload
 
plant
 
in
 
South
 
America
to
 
support
 
the
 
integration
 
of
 
renewables.
 
Activity
 
in
 
the
 
energy
storage
 
market
 
was
 
resilient,
 
with
 
orders
 
including
 
a
 
90
MW/90
 
MWh
 
storage
 
system
 
to
 
provide
 
flexibility
 
and
 
grid
stability
 
in
 
South
 
East
 
Asia,
 
an
 
order
 
for
 
a
 
123
 
MW/185
 
MWh
storage
 
system
 
to
 
support
 
a
 
major
 
renewable
 
project
 
in
 
the
USA,
 
as
 
well
 
as
 
the
 
first
 
-ever
 
GridSolv
 
Quantum
 
storage
system
 
in
 
the
 
USA.
 
Received
 
service
 
orde
 
rs
 
included
 
a
 
5-
year
 
maintenance
 
agreement
 
to
 
support
 
the
 
availability,
performance,
 
and
 
reliability
 
of
 
a
 
200
 
MW
 
power
 
plant
 
in
Cambodia,
 
as
 
well
 
as
 
a
 
gas
 
conversion
 
project
 
in
 
Brazil
 
along
with
 
a
 
related
 
10
 
-year
 
operations
 
and
 
maintenance
agreement
 
renewa
 
l.
 
The
 
order
 
book
 
at
 
the
 
end
 
of
 
the
 
year
decreased
 
by
 
9%
 
to
 
EUR
 
1,830
 
million
 
(2,014).
Net
 
sales
 
decreased
 
by
 
9%
 
to
 
EUR
 
1,620
 
million
 
(1,779)
compared
 
to
 
the
 
previous
 
year.
 
Service
 
net
 
sales
 
decreased
by
 
2%
 
to
 
EUR
 
782
 
million
 
(802),
 
while
 
equipment
 
net
 
sales
decreased
 
by
 
14%
 
to
 
EUR
 
838
 
million
 
(977).
 
The
 
comparable
operating
 
result
 
amounted
 
to
 
EUR
 
101
 
million
 
(155)
 
or
 
6.3%
of
 
net
 
sales
 
(8.7).
The
 
result
 
was
 
burdened
 
by
 
COVID
 
-19
impacts
 
in
 
the
 
form
 
of
 
delivery
 
delays,
 
weaker
 
absorption
 
of
fixed
 
costs,
 
and
 
increased
 
costs
 
for
 
project
 
execution,
 
as
 
well
as
 
by
 
the
 
delivery
 
of
 
projects
 
communicated
 
in
 
2019
 
to
 
be
affected
 
by
 
cost
 
overruns.
 
Other
 
business
 
activities
Wärtsilä
 
Portfolio
 
Business
Portfolio
 
Business’
 
o
 
rder
 
intake
 
in
 
2020
 
decreased
 
by
 
32%
 
to
EUR
 
168
 
mil
 
lion
 
(248)
 
compared
 
to
 
the
 
previous
 
year.
 
Activity
was
 
the
 
highest
 
in
 
American
 
Hydro,
 
where
 
orders
 
received
during
 
the
 
year
 
included
 
a
 
contract
 
to
 
perform
 
rehabilitation
services
 
and
 
to
 
complete
 
the
 
upgrade
 
and
 
refurbishment
 
of
two
 
units
 
at
 
the
 
Keokuk
 
hydroelectric
 
plant
 
in
 
Iowa,
 
USA.
T
 
his
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
F
 
inancial
 
review
 
Water
 
&
 
Waste
 
and
 
Entertainment
 
Systems
 
continued
 
to
 
work
closely
 
with
 
the
 
Italian
 
shipbuilder
 
Fincantieri
 
for
 
a
 
number
 
of
ships,
 
resulting
 
in
 
orders
 
for
 
complete
 
waste
 
treatment
systems
 
and
 
fresh
 
water
 
generators
 
for
 
two
 
vessels,
 
as
 
well
as
 
entertainment
 
systems
 
for
 
two
 
new
 
series
 
of
 
ships
comprising
 
eight
 
vessels.
 
The
 
order
 
book
 
at
 
the
 
end
 
of
 
the
year
 
decreased
 
by
 
24%
 
to
 
EUR
 
257
 
million
 
(338).
Net
 
sales
 
decreased
 
by
 
24%
 
to
 
EUR
 
181
 
million
 
(236)
compared
 
to
 
the
 
previous
 
year.
 
COVID
 
-19
 
lowered
 
activity,
particularly
 
in
 
the
 
Water
 
&
 
Waste
 
and
 
Entertainment
 
Systems
business
 
units,
 
where
 
especially
 
the
 
cruise
 
segment
 
was
heavily
 
affected.
 
The
 
comparable
 
operating
 
result
 
amounted
to
 
EUR
 
-6
 
million
 
(0)
 
or
 
-3.1%
 
of
 
net
 
sales
 
(0.1).
 
Items
affecting
 
comparability
 
amounting
 
to
 
EUR
 
24
 
million
 
were
recognised
 
during
 
the
 
year
 
largely
 
as
 
a
 
result
 
of
 
the
divestments
 
of
 
Wärtsilä
 
JOVYATLAS
 
GmbH
 
and
 
Wärtsilä
Valves
 
Ltd.
Divestments
In
 
September,
 
Wärtsilä
 
announced
 
the
 
divestment
 
of
 
100%
 
of
the
 
shares
 
in
 
Wärtsilä
 
JOVYATLAS
 
GmbH
 
to
 
Jacob
 
Waitz
Industrie
 
GmbH,
 
a
 
German
 
based
 
industry
 
holding.
 
The
Wärtsilä
 
JOVYATLAS
 
offering
 
consists
 
of
 
UPS
 
systems,
rectifiers,
 
power
 
inverters,
 
frequency
 
transformers
 
,
 
and
resistors
 
with
 
related
 
services.
 
The
 
company,
 
which
 
became
part
 
of
 
Wärtsilä
 
as
 
a
 
result
 
of
 
the
 
acquisition
 
of
 
L
 
-3
Communications
 
MSI
 
in
 
2015,
 
is
 
located
 
in
 
Jemgum
 
in
Germany
 
and
 
currently
 
has
 
some
 
125
 
employees.
 
In
 
2019,
 
its
annual
 
revenues
 
were
 
EUR
 
20
 
million.
 
The
 
divestment
 
is
driving
 
Wärtsilä’s
 
focus
 
on
 
creating
 
a
 
stronger
 
and
 
simpler
core
 
business.
In
 
October,
 
Wärtsilä
 
announced
 
the
 
divestment
 
of
 
100%
 
of
the
 
shares
 
in
 
Wärtsilä
 
Valves
 
Ltd
 
to
 
an
 
affiliate
 
of
 
Evergreen
Capital
 
L.P.,
 
based
 
in
 
New
 
York,
 
US
 
A.
 
Its
 
activities
 
include
engineering,
 
assembly,
 
testing,
 
sales
 
,
 
and
 
delivery
 
of
 
nickel
aluminium
 
bronze
 
(NAB)
 
and
 
duplex
 
valves
 
for
 
the
 
marine,
 
oil
and
 
gas
 
,
 
and
 
energy
 
markets.
 
Additionally,
 
it
 
offers
applications
 
for
 
Valves’
 
products,
 
including
 
FPSO,
petrochemical
 
facilities,
 
power
 
generation,
 
LNG,
 
naval
marine,
 
marine
 
services,
 
waste
 
water
 
treatment
 
plants
 
,
 
and
pipelines.
 
Wärtsilä
 
Valves
 
became
 
part
 
of
 
Wärtsilä
 
as
 
a
 
result
of
 
the
 
Hamworthy
 
acquisition
 
in
 
2012.
 
The
 
company
 
is
located
 
in
 
Brough,
 
UK
 
and
 
currently
 
has
 
approximately
 
65
e
 
mployees.
 
The
 
annual
 
revenues
 
were
 
approximately
 
EUR
15
 
million
 
in
 
2019.
In
 
December,
 
Wärtsilä
 
closed
 
the
 
divestment
 
of
 
Wärtsilä
ELAC
 
Nautik
 
GmbH
 
(ELAC
 
Nautik)
 
to
 
Cohort
 
plc,
 
a
 
UK
 
listed
company,
 
specialising
 
in
 
defence,
 
security
 
and
 
related
 
market
sectors.
 
ELAC
 
Nautik
 
became
 
part
 
of
 
Wärtsilä
 
as
 
a
 
result
 
of
the
 
acquisition
 
of
 
L
 
-3
 
Communications
 
MSI
 
in
 
2015.
 
Its
 
main
market
 
focus
 
is
 
on
 
hydroacoustic
 
products,
 
including
 
sonars,
underwater
 
communication
 
and
 
echo
 
systems
 
for
 
small
 
and
medium
 
sized
 
military
 
submarines.
 
The
 
company
 
is
 
located
 
in
Kiel,
 
Germany
 
and
 
employs
 
125
 
people.
 
The
 
annual
revenues
 
were
 
approximately
 
EUR
 
20
 
million
 
in
 
2019.
Risks
 
and
 
business
 
uncertainties
The
 
COVID
 
-19
 
pandemic
 
and
 
the
 
measures
 
taken
 
to
 
contain
its
 
spread
 
represent
 
the
 
main
 
sh
 
ort
 
-term
 
risk
 
to
 
business
operations
 
and
 
the
 
demand
 
environment,
 
impacting
 
global
energy
 
consumption,
 
seaborne
 
trade,
 
as
 
well
 
as
 
consumer
confidence
 
in
 
cruise
 
and
 
ferry
 
transportation.
 
Mobility
restrictions
 
continue
 
to
 
affect
 
business
 
activities,
 
project
delivery
 
schedules,
 
and
 
the
 
ability
 
to
 
perform
 
service
activities.
 
Disruptions
 
to
 
global
 
supply
 
chains
 
resulting
 
from
new
 
waves
 
of
 
COVID
 
-19
 
infections
 
are
 
a
 
risk
 
for
 
both
 
factory
activity
 
and
 
the
 
delivery
 
of
 
spare
 
parts
 
and
 
services.
 
Although
vaccinations
 
a
 
gainst
 
COVID
 
-19
 
have
 
started
 
in
 
many
countries,
 
there
 
is
 
still
 
significant
 
uncertainty
 
over
 
the
 
duration
of
 
the
 
pandemic
 
and
 
how
 
quickly
 
country
 
level
 
vaccination
program
 
mes
 
will
 
be
 
implemented
 
on
 
a
 
global
 
scale.
In
 
the
 
marine
 
markets,
 
the
 
risk
 
of
 
a
 
prolonged
 
period
 
of
 
weak
demand
 
affects
 
the
 
investment
 
decisions
 
of
 
shipowners
 
and
operators,
 
who
 
are
 
forced
 
to
 
re
 
-evaluate
 
their
 
strategies
related
 
to
 
both
 
vessel
 
newbuilding
 
and
 
existing
 
fleets,
 
and
 
to
cut
 
capital
 
and
 
operational
 
expenditures.
 
The
 
prevailing
market
 
conditions
 
may
 
result
 
in
 
continued
 
price
 
pressure
 
and
an
 
elevated
 
risk
 
of
 
order
 
cancellations
 
or
 
slippage.
 
Surplus
capacity
 
can
 
drive
 
further
 
consolidation
 
among
 
shipyards,
ship
 
owners,
 
and
 
operators
 
in
 
certain
 
segments,
 
which
 
may
result
 
in
 
lower
 
capture
 
rates
 
in
 
services
 
and
 
equipment
 
sales
due
 
to
 
changed
 
customer
 
relationships.
 
Extensions
 
of
 
no
 
-sail
orders,
 
the
 
limited
 
ability
 
or
 
desire
 
of
 
people
 
to
 
travel,
 
and
 
the
escalation
 
of
 
COVID
 
-19
 
cases
 
are
 
a
 
risk
 
for
 
recovery
 
in
 
the
cruise
 
and
 
ferry
 
markets.
 
In
 
the
 
offshore
 
industry,
 
crude
 
oil
price
 
volatility
 
is
 
pushing
 
the
 
oil
 
majors
 
to
 
reduce
 
their
spending,
 
exploration
 
activity,
 
and
 
operational
 
costs,
 
leading
to
 
an
 
increasing
 
number
 
of
 
laid
 
-up
 
drilling
 
units
 
and
 
support
vessels.
 
The
 
average
 
price
 
spread
 
b
 
etween
 
high
 
-
 
and
 
low-
sulphur
 
fuels
 
is
 
projected
 
to
 
remain
 
narrow
 
in
 
the
 
near
 
term,
negatively
 
impacting
 
the
 
scrubber
 
investment
 
case
 
for
 
both
the
 
existing
 
fleet
 
and
 
newbuilds.
 
At
 
the
 
same
 
time,
 
the
 
low
 
oil
price
 
is
 
widening
 
the
 
price
 
differential
 
between
 
existing
 
fuels
and
 
green
 
alternatives.
 
This
 
,
 
combined
 
with
 
the
 
market
challenges
 
shipowners
 
are
 
facing
 
,
 
further
 
raises
 
the
importance
 
of
 
a
 
clear
 
and
 
foreseeable
 
development
 
of
 
the
regulatory
 
environment
 
as
 
a
 
fundamental
 
condition
 
to
 
the
decarbonisation
 
of
 
shipping.
 
In
 
the
 
e
 
nergy
 
markets,
 
the
 
slowdown
 
in
 
economic
 
activity,
currency
 
fluctuations,
 
and
 
potential
 
financing
 
constraints
 
are
likely
 
to
 
postpone
 
investment
 
decisions
 
on
 
new
 
power
generation
 
capacity.
 
The
 
energy
 
transition
 
may
 
temporarily
slow
 
down,
 
as
 
the
 
focus
 
is
 
on
 
containing
 
the
 
virus
 
spread
 
and
mitigating
 
its
 
impacts.
 
Agreed
 
and
 
proposed
 
stimulus
packages
 
to
 
accelerate
 
renewable
 
energy
 
investments
 
still
include
 
uncertainties
 
about
 
the
 
allocation
 
of
 
funding.
However,
 
once
 
stimulus
 
measures
 
are
 
execut
 
ed,
 
the
 
need
 
for
flexibility
 
in
 
power
 
systems
 
will
 
be
 
emphasi
 
s
 
ed.
 
Changes
 
in
c
 
limate
 
polic
 
ies
 
and
 
regulation
 
s
 
cause
 
uncertainty
 
in
 
the
markets
 
,
 
as
 
they
 
may
 
impact
 
customers’
 
technology
 
choices.
Geopolitical
 
tensions
 
and
 
trade
 
barrier
 
implications
 
are
 
also
notable
 
challenges
 
to
 
the
 
demand
 
environment.
 
Price
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
T
 
his
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
F
 
inancial
 
review
 
pressure
 
resulting
 
from
 
the
 
prevailing
 
competitive
environment
 
remains
 
a
 
risk.
The
 
Group
 
is
 
a
 
defendant
 
in
 
a
 
number
 
of
 
legal
 
cases
 
that
have
 
arisen
 
out
 
of,
 
or
 
are
 
incidental
 
to,
 
the
 
ordinary
 
course
 
of
its
 
business.
 
These
 
lawsuits
 
mainly
 
concern
 
issues
 
such
 
as
contractual
 
and
 
other
 
liability,
 
labour
 
relations,
 
property
damage,
 
and
 
regulatory
 
matters.
 
From
 
time
 
to
 
time,
 
the
Group
 
receives
 
claims
 
of
 
different
 
amounts
 
and
 
with
 
varying
degrees
 
of
 
substantiation.
 
There
 
is
 
currently
 
one
 
unusually
sizeable
 
claim.
 
It
 
is
 
the
 
Group’s
 
policy
 
to
 
provide
 
for
 
amounts
related
 
to
 
the
 
claims
 
as
 
well
 
as
 
for
 
litigation
 
and
 
arbitration
matters
 
when
 
an
 
unfavourable
 
outcome
 
is
 
probable
 
and
 
the
amount
 
of
 
loss
 
can
 
be
 
reasonably
 
estimated.
The
 
Risks
 
and
 
risk
 
management
 
section
 
of
 
the
 
annual
 
report
contains
 
a
 
more
 
detailed
 
description
 
of
 
Wärtsilä’s
 
risks
 
and
risk
 
management.
Shares
 
and
 
shareholders
In
 
2020
 
,
 
the
 
number
 
of
 
shares
 
traded
 
on
 
Nasdaq
 
Helsinki
 
was
635,449,872
 
,
 
equivalent
 
to
 
a
 
turnover
 
of
 
EUR
 
4,865
 
million.
Wärtsilä's
 
shares
 
are
 
also
 
traded
 
on
 
alternative
 
exchanges,
such
 
as
 
Turquoise,
 
BATS
 
CXE,
 
and
 
BATS
 
BXE.
 
The
 
total
trading
 
volume
 
on
 
these
 
alternative
 
exchanges
 
was
199,394,959
 
shares.
Wärtsilä
 
shares
 
on
 
Nasdaq
 
Helsinki
31.12.2020
Number
 
of
 
shares
 
and
 
votes
Number
 
of
 
shares
 
traded
 
1-12/2020
WRT1V
591,723,390
635,449,872
1.1.-
 
31.12.2020
High
Low
Average*
Close
Share
 
price
 
12.00
5.01
7.66
8.15
*Trade
 
-weighted
 
average
 
price
Market
 
capitalisation
31.12.2020
31.12.2019
MEUR
4,823
5,828
Foreign
 
shareholders
31.12.2020
31.12.2019
%
50.7
52.8
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
T
 
his
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
F
 
inancial
 
review
 
 
Decisions
 
taken
 
by
 
the
 
Annual
 
General
 
Meeting
Wärtsilä’s
 
Annual
 
General
 
Meeting,
 
held
 
on
 
5
 
March
 
2020,
approved
 
the
 
financial
 
statements
 
and
 
discharged
 
the
members
 
of
 
the
 
Board
 
of
 
Directors
 
and
 
the
 
company’s
President
 
&
 
CEO
 
from
 
liability
 
for
 
the
 
financial
 
year
 
2019.
The
 
Annual
 
General
 
Meeting
 
decided
 
that
 
the
 
Board
 
of
Directors
 
shall
 
have
 
eight
 
members.
 
The
 
following
 
were
elected
 
to
 
the
 
Board:
 
Maarit
 
Aarni
 
-Sirviö,
 
Karen
 
Bomba,
 
Karin
Falk,
 
Johan
 
Forssell,
 
Tom
 
Johnstone,
 
Risto
 
Murto,
 
Mats
Rahmström
 
and
 
Markus
 
Rauramo.
The
 
audit
 
firm
 
PricewaterhouseCoopers
 
Oy
 
was
 
elected
 
as
the
 
company’s
 
auditor
 
for
 
the
 
year
 
2020.
Dividend
 
distribution
The
 
Annual
 
General
 
Meeting
 
approved
 
the
 
Board
 
of
Directors’
 
proposal
 
to
 
pay
 
a
 
dividend
 
of
 
EUR
 
0.48
 
per
 
share
in
 
two
 
instalments.
 
The
 
first
 
instalment
 
of
 
EUR
 
0.24
 
per
 
share
was
 
paid
 
on
 
16
 
March
 
2020
 
and
 
the
 
second
 
instalment
 
of
EUR
 
0.24
 
per
 
share
 
on
 
17
 
September
 
2020.
Shareholders’
 
Nomination
 
Board
The
 
Annual
 
General
 
Meeting
 
decided
 
to
 
establish
 
a
Shareholders’
 
Nomination
 
Board
 
to
 
prepare
 
matters
pertaining
 
to
 
the
 
appointment
 
and
 
remuneration
 
of
 
the
 
Board
of
 
Directors.
 
It
 
also
 
adopted
 
the
 
proposed
 
Charter
 
of
 
the
Shareholders’
 
Nomination
 
Board.
 
The
 
Charter
 
is
 
available
 
on
Wärtsilä
 
Corporation’s
 
website.
The
 
Nomination
 
Board
 
consists
 
of
 
five
 
members.
 
Four
representatives
 
are
 
nominated
 
by
 
the
 
company’s
 
four
 
largest
shareholders,
 
with
 
the
 
fifth
 
member
 
being
 
the
 
Chairman
 
of
Wärtsilä’s
 
Board
 
of
 
Directors.
 
The
 
four
 
largest
 
shareholders
are
 
determined
 
on
 
the
 
basis
 
of
 
the
 
shareholders’
 
register
maintained
 
by
 
Euroclear
 
Finland
 
Oy
 
as
 
of
 
1
 
June
 
preceding
the
 
Annual
 
General
 
Meeting
 
of
 
shareholders.
Flagging
 
notifications
Wärtsilä
 
was
 
informed
 
of
 
the
 
following
 
changes
 
in
 
ownership
 
during
 
2020
 
:
Transaction
 
date
Shareholder
Treshold
Direct
 
holding,
 
%
Total
 
holding,
 
%
24.3.2020
BlackRock,
 
Inc.
Above
 
5%
4.85
5.11
31.3.2020
BlackRock,
 
Inc.
Below
 
5%
4.30
4.82
1.4.2020
BlackRock,
 
Inc.
Above
 
5%
4.48
5.00
2.4.2020
BlackRock,
 
Inc.
Below
 
5%
4.37
4.94
25.5.2020
BlackRock,
 
Inc.
Above
 
5%
4.48
5.00
26.5.2020
BlackRock,
 
Inc.
Below
 
5%
Below
 
5%
Below
 
5%
18.6.2020
BlackRock,
 
Inc.
Above
 
5%
4.69
5.13
15.7.2020
BlackRock,
 
Inc.
Above
 
5%
5.02
5.80
23.7.2020
BlackRock,
 
Inc.
Below
 
5%
4.88
5.33
24.7.2020
BlackRock,
 
Inc.
Above
 
5%
5.12
5.54
27.7.2020
BlackRock,
 
Inc.
Below
 
5%
4.98
5.44
28.7.2020
BlackRock,
 
Inc.
Above
 
5%
5.01
5.47
29.7.2020
BlackRock,
 
Inc.
Below
 
5%
4.95
5.40
31.7.2020
BlackRock,
 
Inc.
Above
 
5%
5.04
5.48
5.8.2020
BlackRock,
 
Inc.
Below
 
5%
4.99
5.43
6.8.2020
BlackRock,
 
Inc.
Above
 
5%
5.08
5.47
11.8.2020
BlackRock,
 
Inc.
Below
 
5%
4.96
5.31
11.9.2020
BlackRock,
 
Inc.
Above
 
5%
5.03
5.58
18.9.2020
BlackRock,
 
Inc.
Below
 
5%
4.78
5.57
21.10.2020
BlackRock,
 
Inc.
Below
 
5%
Below
 
5%
Below
 
5%
14.12.2020
BlackRock,
 
Inc.
Above
 
5%
4.89
5.00
15.12.2020
BlackRock,
 
Inc.
Below
 
5%
Below
 
5%
Below
 
5%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
wartsila-2020-12-31p14i0
 
T
 
his
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
F
 
inancial
 
review
 
0,30
0,33
0,35
0,38
0,40
0,43
0,46
0,48
0,48
0,20
0,00
0,25
0,50
0,75
1,00
11
12
13
14
15
16
17
18
19
20
EUR
Dividend
 
per
 
share
Earnings
 
per
 
share
The
 
following
 
members
 
were
 
appointed
 
to
 
Wärtsilä’s
Shareholders’
 
Nomination
 
Board:
 
Petra
 
Hedengran
 
(General
 
Counsel,
 
Investor
 
AB),
appointed
 
by
 
Invaw
 
Invest
 
AB
 
Reima
 
Rytsölä
(Deputy
 
CEO,
 
Investments,
 
Varma
Mutual
 
Pension
 
Insurance
 
Company),
 
appointed
 
by
Varma
 
Mutual
 
Pension
 
Insurance
 
Company
 
Mikko
 
Mursula
 
(Deputy
 
CEO,
 
Chief
 
Investment
Officer,
 
Ilmarinen
 
Mutual
 
Pension
 
Insurance
Company),
 
appointed
 
by
 
Ilmarinen
 
Mutual
 
Pension
Insurance
 
Company
 
Satu
 
Huber
 
(CEO,
 
Elo
 
Mutual
 
Pension
 
Insurance
Company),
 
appointed
 
by
 
Elo
 
Mutual
 
Pension
Insurance
 
Company
 
Tom
 
Johnstone
 
(Chairman
 
of
 
the
 
Board
 
of
 
Directors
of
 
Wärtsilä)
Authorisation
 
to
 
repurchase
 
the
 
company’s
 
own
 
shares
The
 
Board
 
of
 
Directors
 
was
 
authorised
 
to
 
resolve
 
to
repurchase
 
a
 
maximum
 
of
 
57,000,000
 
of
 
the
 
company’s
 
own
shares.
 
The
 
authorisation
 
to
 
repurchase
 
the
 
company’s
 
own
shares
 
shall
 
be
 
valid
 
until
 
the
 
close
 
of
 
the
 
next
 
Annual
General
 
Meeting,
 
however
 
no
 
longer
 
than
 
for
 
18
 
months
 
from
the
 
authorisation
 
of
 
the
 
shareholders’
 
meeting.
Authorisation
 
to
 
issue
 
shares
The
 
Board
 
of
 
Directors
 
was
 
authorised
 
to
 
resolve
 
to
 
issue
new
 
shares
 
or
 
transfer
 
shares
 
held
 
by
 
the
 
company.
 
The
maximum
 
amount
 
of
 
shares
 
to
 
be
 
so
 
issued
 
shall
 
not
 
exceed
57,000,000.
 
The
 
shares
 
can
 
be
 
issued
 
for
 
consideration
 
or
without
 
consideration.
 
They
 
can
 
also
 
be
 
issued
 
in
 
deviation
from
 
the
 
shareholders’
 
pre
 
-emptive
 
rights
 
by
 
way
 
of
 
a
directed
 
issue
 
if
 
there
 
is
 
a
 
weighty
 
financial
 
reason
 
for
 
the
company
 
to
 
do
 
so.
 
The
 
authorisation
 
for
 
the
 
Board
 
of
Directors
 
to
 
issue
 
shares
 
shall
 
be
 
valid
 
for
 
three
 
years
 
from
the
 
authorisation
 
of
 
the
 
shareholders’
 
meeting
 
and
 
it
 
cancels
the
 
authorisation
 
given
 
by
 
the
 
General
 
Meeting
 
on
 
7
 
March
2019
 
to
 
distribute
 
the
 
company’s
 
own
 
shar
 
es.
Organisation
 
of
 
the
 
Board
 
of
 
Directors
Convening
 
after
 
the
 
Annual
 
General
 
Meeting,
 
the
 
Board
 
of
Directors
 
elected
 
Tom
 
Johnstone
 
as
 
its
 
chairman
 
and
 
Markus
Rauramo
 
as
 
the
 
deputy
 
chairman.
 
The
 
Board
 
decided
 
to
establish
 
an
 
Audit
 
Committee
 
and
 
a
 
People
 
Committee.
 
The
Board
 
appointed
 
from
 
among
 
its
 
members
 
the
 
following
members
 
to
 
the
 
Committees:
Audit
 
Committee:
 
Chair
 
Markus
 
Rauramo,
 
Maarit
 
Aarni-
Sirviö,
 
Risto
 
Murto
People
 
Committee:
 
Chair
 
Maarit
 
Aarni
 
-Sirviö,
 
Johan
Forssell,
 
Tom
 
Johnstone
WÄRTSILÄ'S
 
PROSPECTS
 
FOR
 
2021
Wärtsilä
 
expects
 
the
 
near
 
-
 
term
 
demand
 
environment
 
to
 
be
similar
 
to
 
that
 
of
 
the
 
corresponding
 
period
 
in
 
the
 
previous
year.
 
However,
 
visibility
 
remains
 
limited,
 
and
 
the
 
prevailing
market
 
conditions
 
make
 
the
 
outlook
 
uncertain.
 
BOARD
 
OF
 
DIRECTORS’
 
DIVIDEND
 
PROPOSAL
The
 
Board
 
of
 
Directors
 
proposes
 
that
 
a
 
dividend
 
of
 
EUR
 
0.20
 
per
 
share
 
be
 
paid
 
for
 
the
 
financial
 
year
 
2020.
 
The
 
parent
company’s
 
distributable
 
funds
 
total
 
EUR
 
974,008,736.28,
which
 
includes
 
EUR
 
264,838,387.72
 
in
 
net
 
profit
 
for
 
the
 
year.
There
 
are
 
591,723,390
 
shares
 
with
 
dividend
 
rights.
 
The
dividend
 
shall
 
be
 
paid
 
in
 
two
 
instalments.
The
 
first
 
instalme
 
nt
 
of
 
EUR
 
0.10
 
per
 
share
 
shall
 
be
 
paid
 
to
 
the
shareholders
 
who
 
are
 
registered
 
in
 
the
 
list
 
of
 
shareholders
maintained
 
by
 
Euroclear
 
Finland
 
Oy
 
on
 
the
 
dividend
 
record
date
 
of
 
8
 
March
 
2021.
 
The
 
payment
 
day
 
proposed
 
by
 
the
Board
 
for
 
this
 
instalment
 
is
 
15
 
March
 
2021.
The
 
second
 
instalment
 
of
 
EUR
 
0.10
 
per
 
share
 
shall
 
be
 
paid
 
in
September
 
202
 
1.
 
The
 
second
 
instalment
 
of
 
the
 
dividend
 
shall
be
 
paid
 
to
 
shareholders
 
who
 
are
 
registered
 
in
 
the
 
list
 
of
shareholders
 
maintained
 
by
 
Euroclear
 
Finland
 
Oy
 
on
 
the
dividend
 
record
 
day,
 
which,
 
together
 
with
 
the
 
payment
 
day,
shall
 
be
 
decided
 
by
 
the
 
Board
 
of
 
Directors
 
in
 
its
 
meeting
scheduled
 
for
 
9
 
September
 
202
 
1.
 
The
 
dividend
 
record
 
day
 
for
the
 
second
 
instalment
 
as
 
per
 
the
 
current
 
rules
 
of
 
the
 
Finnish
book
 
-entry
 
system
 
would
 
be
 
13
 
September
 
2021
 
and
 
the
dividend
 
payment
 
day
 
20
 
September
 
202
 
1
 
.
 
EVENTS
 
AFTER
 
THE
 
REVIEW
 
PERIOD
In
 
January
 
2021,
 
Wärtsilä
 
announced
 
the
 
divestment
 
of
 
100%
of
 
the
 
shares
 
in
 
its
 
Entertainment
 
business,
 
Wärtsilä
 
Funa
GmbH,
 
to
 
Videlio
 
SA,
 
a
 
French
 
public
 
limited
 
company.
Wärtsilä
 
Entertainment
 
is
 
engaged
 
in
 
the
 
field
 
of
 
design,
fabrication,
 
engineering
 
and
 
integration
 
of
 
entertainment
systems,
 
illumination,
 
light
 
control,
 
cabin
 
control,
 
broadcast
Dividend
 
 
 
 
 
The
 
free
 
share
 
issue
 
approved
 
by
 
Wärtsilä
 
Corporation’s
 
Annual
 
General
Meeting
 
on
 
8
 
March
 
2018
 
increased
 
the
 
total
 
number
 
of
 
Wärtsilä
 
shares
 
to
591,723,390.
 
Figures
 
for
 
the
 
comparison
 
periods
 
201
 
1-2017
 
have
 
been
adjusted
 
to
 
reflect
 
the
 
increased
 
number
 
of
 
shares.
T
 
his
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
F
 
inancial
 
review
 
and
 
digital
 
audio
 
distribution
 
and
 
announcement
 
systems
 
for
cruise
 
vessels
 
and
 
entertainment
 
parks.
 
The
 
company
became
 
p
 
art
 
of
 
Wärtsilä
 
as
 
a
 
result
 
of
 
the
 
acquisition
 
of
 
L
 
-3
Communications
 
MSI
 
in
 
2015
 
and
 
has
 
172
 
employees
 
in
 
five
countries,
 
with
 
the
 
majority
 
being
 
based
 
in
 
Emden,
 
Germany.
The
 
annual
 
revenues
 
were
 
approximately
 
EUR
 
50
 
million
 
in
2020.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
 
 
FIVE
 
YEARS
 
IN
 
FIGURES
Wärtsilä
 
provides
 
certain
 
financial
 
performance
 
measures,
 
which
 
are
 
accounting
 
measures
 
that
 
are
 
not
 
defined
by
 
IFRS.
 
These
 
alternative
 
performance
 
measures,
 
such
 
as
 
comparable
 
operating
 
result,
 
comparable
 
adjusted
EBITA,
 
cash
 
flow
 
from
 
operating
 
activities,
 
and
 
gearing,
 
are
 
followed
 
and
 
used
 
by
 
management
 
to
 
measure
 
the
Group's
 
performance
 
and
 
financial
 
position.
 
In
 
addition,
 
Wärtsilä's
 
targets
 
of
 
financial
 
performance
 
are
 
linked
 
to
for
 
example
 
comparable
 
operating
 
result
 
and
 
gearing.
 
Thus,
 
these
 
alternative
 
performance
 
measures
 
provide
useful
 
information
 
to
 
the
 
capital
 
markets.
 
The
 
alternative
 
performance
 
measures
 
should
 
not
 
be
 
evaluated
 
in
 
isolation
 
from
 
the
 
corresponding
 
IFRS
measures.
 
The
 
alternative
 
performance
 
measure
 
calculation
 
definitions
 
are
 
disclosed
 
in
 
Calculations
 
of
financial
 
ratios.
 
Restated
MEUR
2020
2019
2018
2017*
2016
Net
 
sales
4,604
5,170
5,174
4,911
4,801
of
 
which
 
outside
 
Finland
%
97.9
98.5
98.9
97.7
97.5
Exports
 
from
 
Finland
1,702
1,933
2,145
1,953
1,804
Personnel
 
on
 
average
18,307
19,110
18,899
17,866
18,332
of
 
which
 
in
 
Finland
3,706
3,868
3,766
3,521
3,482
Order
 
book
5,057
5,878
6,166
5,100
4,696
From
 
the
 
consolidated
 
statement
 
of
 
income
Depreciation,
 
amortisation
 
and
 
impairment
174
180
130
134
138
Share
 
of
 
result
 
of
 
associates
 
and
 
joint
 
ventures
3
-9
13
13
14
Comparable
 
operating
 
result
275
457
577
576
583
as
 
a
 
percentage
 
of
 
net
 
sales
%
6.0
8.8
11.2
11.7
12.1
Operating
 
result
234
362
543
538
532
as
 
a
 
percentage
 
of
 
net
 
sales
%
5.1
7.0
10.5
11.0
11.1
Comparable
 
adjusted
 
EBITA
308
498
621
612
618
as
 
a
 
percentage
 
of
 
net
 
sales
%
6.7
9.6
12.0
12.5
12.9
Financial
 
income
 
and
 
expenses
-43
-47
-40
-47
-53
Profit
 
before
 
taxes
191
315
502
491
479
as
 
a
 
percentage
 
of
 
net
 
sales
%
4.2
6.1
9.7
10.0
10.0
Profit
 
for
 
the
 
financial
 
period
133
218
386
375
357
as
 
a
 
percentage
 
of
 
net
 
sales
%
2.9
4.2
7.5
7.6
7.4
From
 
the
 
consolidated
 
statement
 
of
 
financial
position
Non
 
-current
 
assets
2,427
2,518
2,369
2,285
2,116
Current
 
assets
3,706
3,797
3,690
3,363
3,275
Assets
 
held
 
for
 
sale
99
82
-
-
-
Total
 
equity
 
attributable
 
to
 
equity
 
holders
 
of
 
the
 
parent
company
2,177
2,396
2,418
2,352
2,288
Non
 
-controlling
 
interests
11
14
14
24
34
Interest
 
-bearing
 
debt
1,327
1,096
823
619
629
Non
 
-interest
 
-bearing
 
liabilities
2,648
2,824
2,804
2,653
2,441
Liabilities
 
directly
 
attributable
 
to
 
assets
 
held
 
for
 
sale
68
68
-
-
-
Total
 
equity
 
and
 
liabilities
6,232
6,398
6,059
5,648
5,391
From
 
the
 
consolidated
 
statement
 
of
 
cash
 
flows
Cash
 
flow
 
from
 
operating
 
activities
681
232
470
430
613
Cash
 
flow
 
from
 
investing
 
activities
-55
-95
-240
-235
-126
Cash
 
flow
 
from
 
financing
 
activities
-44
-256
-118
-278
-339
Gross
 
capital
 
expenditure
117
122
306
255
146
as
 
a
 
percentage
 
of
 
net
 
sales
%
2.5
2.4
5.9
5.2
3.0
Research
 
and
 
development
 
expenditure
153
164
165
141
131
as
 
a
 
percentage
 
of
 
net
 
sales
%
3.3
3.2
3.2
2.9
2.7
Dividends
 
paid
118**
284
284
272
256
Financial
 
ratios
Earnings
 
per
 
share
 
(EPS),
 
basic
 
and
 
diluted***
EUR
0.23
0.37
0.65
0.63
0.60
Dividend
 
per
 
share***
EUR
0.20**
0.48
0.48
0.46
0.43
Dividend
 
per
 
earnings
%
88.2**
130.8
73.7
70.8
72.8
Interest
 
coverage
7.1
7.7
10.8
11.8
18.6
Return
 
on
 
investment
 
(ROI)
%
7.1
11.5
18.1
18.5
17.1
Return
 
on
 
equity
 
(ROE)
%
5.8
9.0
16.1
16.0
15.6
Solvency
 
ratio
%
38.1
40.8
44.4
46.3
47.6
Gearing
0.18
0.30
0.14
0.10
0.07
Equity
 
per
 
share***
EUR
3.68
4.05
4.09
3.97
3.87
Working
 
capital
 
(WCAP)
EUR
257
732
581
563
490
 
The
 
financial
 
ratios
 
include
 
assets
 
and
 
liabilities
 
pertaining
 
to
 
assets
 
held
 
for
 
sale.
*
 
Figures
 
in
 
the
 
comparison
 
period
 
2017
 
have
 
been
 
restated
 
due
 
to
 
the
 
adoption
 
of
 
IFRS
 
15.
**
 
Proposal
 
of
 
the
 
Board
 
of
 
Directors.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
 
 
***
 
Share
 
issue
 
without
 
payment
 
(share
 
split)
 
approved
 
by
 
Wärtsilä
 
Corporation’s
 
Annual
 
General
 
Meeting
 
on
 
8
March
 
2018
 
increased
 
the
 
total
 
number
 
of
 
Wärtsilä
 
shares
 
to
 
591,723,390.
 
Figures
 
in
 
the
 
comparison
 
periods
have
 
been
 
restated
 
accordingly.
 
QUARTERLY
 
FIGURES
MEUR
10–12/2020
7–9/2020
4–6/2020
1–3/2020
10–12/2019
7–9/2019
4–6/2019
1–3/2019
10–12/2018
Order
 
intake
Marine
 
Power*
440
410
391
496
656
449
632
509
Marine
 
Systems*
133
174
119
113
147
150
198
258
Voyage*
55
44
56
107
93
69
72
76
Wärtsilä
 
Marine
 
Business*
1,031
Energy*
469
319
390
475
585
260
435
489
843
Portfolio
 
Business*
21
34
55
57
74
51
40
83
Total
1,118
981
1,011
1,247
1,555
979
1,377
1,416
1,874
Order
 
book
 
at
 
the
 
end
 
of
 
the
 
financial
 
period**
Marine
 
Power*
1,839
1,908
1,913
1,967
2,019
1,981
1,976
1,800
Marine
 
Systems*
857
872
902
1,051
1,232
1,377
1,471
1,516
Voyage*
275
289
305
304
274
265
252
257
Wärtsilä
 
Marine
 
Business*
3,651
Energy*
1,830
1,865
1,939
2,087
2,014
2,023
2,120
2,043
2,515
Portfolio
 
Business*
257
331
341
336
338
336
338
361
Total
5,057
5,265
5,401
5,745
5,878
5,982
6,157
5,977
6,166
Net
 
sales
Marine
 
Power*
489
382
420
457
603
430
447
443
Marine
 
Systems*
167
169
238
234
279
244
237
192
Voyage*
68
54
56
69
82
60
73
65
Wärtsilä
 
Marine
 
Business*
831
Energy*
465
347
457
351
648
328
400
403
701
Portfolio
 
Business*
30
43
48
59
71
56
60
49
Total
1,220
995
1,220
1,170
1,684
1,118
1,217
1,151
1,532
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
 
 
Share
 
of
 
result
 
of
 
associates
 
and
 
joint
 
ventures
0
1
1
-2
-6
-1
3
Comparable
 
adjusted
 
EBITA
111
69
63
65
213
49
123
113
237
as
 
a
 
percentage
 
of
 
net
 
sales
9.1
7.0
5.2
5.6
12.6
4.4
10.1
9.8
15.4
Depreciation,
 
amortisation
 
and
 
impairment
-49
-47
-38
-39
-39
-58
-42
-41
-37
Purchase
 
price
 
allocation
 
amortisation
-8
-8
-8
-9
-10
-10
-10
-11
-11
Comparable
 
operating
 
result
103
61
55
56
202
39
113
102
226
as
 
a
 
percentage
 
of
 
net
 
sales
8.4
6.1
4.5
4.8
12.0
3.5
9.3
8.9
14.7
Items
 
affecting
 
comparability,
 
total
-13
-18
-6
-4
-39
-28
-17
-11
-20
Operating
 
result
90
43
49
52
164
11
96
91
206
as
 
a
 
percentage
 
of
 
net
 
sales
7.4
4.3
4.0
4.5
9.7
1.0
7.9
7.9
13.4
Financial
 
income
 
and
 
expenses
-12
-9
-13
-9
-11
-11
-13
-13
-12
Profit
 
before
 
taxes
78
34
36
43
153
83
78
194
Income
 
taxes
-23
-9
-12
-14
-51
-5
-21
-19
-41
Profit
 
for
 
the
 
financial
 
period
55
25
23
29
102
-5
62
59
153
Earnings
 
per
 
share
 
(EPS),
 
basic
 
and
 
diluted,
 
EUR
0.10
0.04
0.04
0.05
0.17
-0.01
0.11
0.10
0.25
Gross
 
capital
 
expenditure
38
25
27
27
44
24
32
23
48
Investments
 
in
 
securities
 
and
 
acquisitions
1
1
2
4
-1
Cash
 
flow
 
from
 
operating
 
activities
274
114
252
42
295
-61
-37
35
349
Working
 
capital
 
(WCAP)
 
at
 
the
 
end
 
of
 
the
 
financial
 
period
257
431
492
660
732
870
784
656
581
Personnel
 
at
 
the
 
end
 
of
 
the
 
financial
 
period***
Marine
 
Power*
8,355
8,412
8,674
8,934
8,820
8,962
9,005
8,881
Marine
 
Systems*
1,897
1,891
1,846
1,862
1,870
1,828
1,887
1,882
Voyage*
1,915
1,946
1,917
1,939
1,889
1,875
1,849
1,852
Wärtsilä
 
Marine
 
Business*
13,582
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
 
 
Energy*
4,888
4,837
4,799
4,819
5,137
5,295
5,449
5,513
5,712
Portfolio
 
Business*
737
1,097
1,098
1,088
1,080
1,058
1,050
1,096
Total
17,792
18,183
18,334
18,642
18,795
19,018
19,239
19,225
19,294
 
*
 
The
 
segment
 
related
 
comparison
 
figures
 
for
 
2018
 
have
 
been
 
restated
 
to
 
reflect
 
the
 
organisational
 
structure,
 
which
 
was
 
in
 
place
 
during
 
2019.
 
The
 
segment
 
related
 
comparison
 
figures
 
for
 
2019
 
and
 
1
 
-3/2020
 
have
 
been
 
restated
 
to
reflect
 
the
 
new
 
organisational
 
structure
 
effective
 
as
 
of
 
1
 
July
 
2020.
**
 
During
 
2019,
 
Wärtsilä
 
implemented
 
stricter
 
requirements
 
for
 
the
 
booking
 
of
 
new
 
orders,
 
which
 
resulted
 
in
 
certain
 
projects
 
being
 
removed
 
from
 
the
 
Energy
 
business’
 
order
 
book.
 
The
 
order
 
book
 
for
 
the
 
first
 
three
 
quarters
 
of
 
2019
has
 
been
 
adjusted
 
to
 
reflect
 
this
 
change.
***
 
Comparison
 
figures
 
have
 
been
 
adjusted
 
to
 
reflect
 
the
 
business
 
unit
 
composition
 
of
 
the
 
Portfolio
 
Business
 
and
 
a
 
change
 
in
 
allocation
 
principles.
 
 
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
 
and
 
diluted
Profit
 
for
 
the
 
financial
 
period
 
attributable
 
to
 
equity
 
holders
 
of
 
the
 
parent
 
company
Adjusted
 
number
 
of
 
shares,
 
average
 
over
 
the
 
financial
 
period
 
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
Total
 
of
 
non-current
 
and
 
current
 
interest-bearing
 
debt
 
+
 
total
 
of
 
non-current
 
and
 
current
 
lease
 
liabilities
 
interest-bearing
 
receivables
 
 
cash
 
and
 
cash
 
equivalents
 
Equity
 
per
 
share
Equity
 
attributable
 
to
 
equity
 
holders
 
of
 
the
 
parent
 
company
Adjusted
 
number
 
of
 
shares
 
at
 
the
 
end
 
of
 
the
 
financial
 
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)
 
Profit
 
before
 
taxes
 
+
 
interest
 
and
 
other
 
financial
 
expenses
 
 
x
 
100
Total
 
equity
 
and
 
liabilities
 
 
non-interest
 
-bearing
 
liabilities
 
 
provisions,
 
average
 
over
 
financial
 
period
 
 
 
 
 
 
 
 
 
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
 
 
Return
 
on
 
equity
 
(ROE)
Profit
 
for
 
the
 
financial
 
period
 
x
 
100
Equity,
 
average
 
over
 
the
 
financial
 
period
 
Order
 
intake
Total
 
amount
 
of
 
orders
 
received
 
during
 
the
 
financial
 
period
 
to
 
be
 
delivered
 
either
 
during
 
the
 
current
 
financial
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
 
-be
 
aring
 
receivables)
 
(trade
 
payables
 
+
 
advances
 
received
 
+
 
pension
 
obligations
 
+
 
provisions
 
+
 
current
 
tax
 
liabilities
 
+
 
other
 
non-
interest
 
-bearing
 
liabilities
 
 
dividend
 
payable)
 
Interest
 
coverage
Profit
 
before
 
taxes
 
+
 
depreciation,
 
amortisation
 
and
 
impai
 
rment
 
+
 
interest
 
and
 
other
 
financial
 
expenses
Interest
 
and
 
other
 
financial
 
expenses
 
Dividend
 
per
 
share
Dividends
 
paid
 
for
 
the
 
financial
 
period
Adjusted
 
number
 
of
 
shares
 
at
 
the
 
end
 
of
 
the
 
financial
 
period
 
Dividend
 
per
 
earnings
Dividend
 
per
 
share
 
x
 
100
Earnings
 
per
 
share
 
(EPS),
 
basic
 
and
 
diluted
 
Effective
 
dividend
 
yield
Dividend
 
per
 
share
 
x
 
100
Adjusted
 
share
 
price
 
at
 
the
 
end
 
of
 
the
 
financial
 
period
 
Price/earnings
 
(P/E)
Adjusted
 
share
 
price
 
at
 
the
 
end
 
of
 
the
 
financial
 
period
Earnings
 
per
 
share
 
(EPS),
 
basic
 
and
 
diluted
 
Price/carrying
 
amount
 
per
 
share
 
(P/BV)
Adjusted
 
share
 
price
 
at
 
the
 
end
 
of
 
the
 
financial
 
period
Equity
 
per
 
share
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
 
 
 
 
FINANCIAL
 
STATEMENTS
CONSOLIDATED
 
FINANCIAL
STATEMENTS
CONSOLIDATED
 
STATEMENT
 
OF
 
INCOME
 
MEUR
2020
2019
Note
Net
 
sales
4,604
5,170
2.1.,
 
2.2.
Change
 
in
 
inventories
 
of
 
finished
 
goods
 
&
 
work
 
in
 
progress
-104
137
Work
 
performed
 
by
 
the
 
Group
 
and
 
capitalised
19
18
Other
 
operating
 
income
61
67
2.3.
Material
 
and
 
services
-2,551
-3,003
2.4.
Employee
 
benefit
 
expenses
-1,192
-1,260
2.5.
Result
 
from
 
net
 
position
 
hedges
-1
Depreciation,
 
amortisation
 
and
 
impairment
-174
-180
3.5.
Other
 
operating
 
expenses
-431
-578
2.3.
Share
 
of
 
result
 
of
 
associates
 
and
 
joint
 
ventures
3
-9
6.4.
Operating
 
result
234
362
as
 
a
 
percentage
 
of
 
net
 
sales
5.1
7.0
Financial
 
income
16
27
5.1.
Financial
 
expenses
-59
-74
5.1.
Profit
 
before
 
taxes
191
315
Income
 
taxes
-58
-97
2.6.
Profit
 
for
 
the
 
financial
 
period
133
218
Attributable
 
to:
equity
 
holders
 
of
 
the
 
parent
 
company
134
217
2.7.
non-controlling
 
interests
-1
1
133
218
Earnings
 
per
 
share
 
attributable
 
to
 
equity
 
holders
 
of
 
the
 
parent
company
 
(basic
 
and
 
diluted):
Earnings
 
per
 
share
 
(EPS),
 
basic
 
and
 
diluted,
 
EUR
0.23
0.37
2.7.
 
The
 
notes
 
are
 
an
 
integral
 
part
 
of
 
these
 
consolidated
 
financial
 
statements.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
 
 
 
CONSOLIDATED
 
STATEMENT
 
OF
COMPREHENSIVE
 
INCOME
 
 
MEUR
2020
2019
Note
Profit
 
for
 
the
 
financial
 
period
133
218
Other
 
comprehensive
 
income,
 
net
 
of
 
taxes:
Items
 
that
 
will
 
not
 
be
 
reclassified
 
to
 
the
 
statement
 
of
 
income
Remeasurements
 
of
 
defined
 
benefit
 
liabilities
6
-20
Tax
 
on
 
items
 
that
 
will
 
not
 
be
 
reclassified
 
to
 
the
 
statement
 
of
income
-1
5
Total
 
items
 
that
 
will
 
not
 
be
 
reclassified
 
to
 
the
 
statement
 
of
income
5
-16
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
-74
42
for
 
non-controlling
 
interests
 
-1
transferred
 
to
 
the
 
statement
 
of
 
income
-6
Associates
 
and
 
joint
 
ventures,
 
share
 
of
 
other
 
comprehensive
income
-2
-1
Cash
 
flow
 
hedges
measured
 
at
 
fair
 
value
-3
4
5.5.
transferred
 
to
 
the
 
statement
 
of
 
income
6
19
Tax
 
on
 
items
 
that
 
may
 
be
 
reclassified
 
to
 
the
 
statement
 
of
income
Cash
 
flow
 
hedges
transferred
 
to
 
the
 
statement
 
of
 
income
-1
-4
Total
 
items
 
that
 
may
 
be
 
reclassified
 
to
 
the
 
statement
 
of
income
-81
60
Other
 
comprehensive
 
income
 
for
 
the
 
financial
 
period,
 
net
 
of
taxes
-76
45
Total
 
comprehensive
 
income
 
for
 
the
 
financial
 
period
57
263
Total
 
comprehensive
 
income
 
attributable
 
to:
equity
 
holders
 
of
 
the
 
parent
 
company
59
262
non-controlling
 
interests
-1
1
57
263
 
The
 
notes
 
are
 
an
 
integral
 
part
 
of
 
these
 
consolidated
 
financial
 
statements.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
 
 
 
CONSOLIDATED
 
STATEMENT
 
OF
FINANCIAL
 
POSITION
 
 
MEUR
31.12.2020
31.12.2019
Note
Assets
Non
 
-current
 
assets
Goodwill
1,325
1,380
3.1.
Intangible
 
assets
391
397
3.2.
Property,
 
plant
 
and
 
equipment
282
307
3.3.
Right
 
-of
 
-use
 
assets
162
185
3.4.
Investments
 
in
 
associates
 
and
 
joint
 
ventures
23
42
6.4.
Other
 
investments
19
18
5.2.
Interest
 
-bearing
 
investments
1
1
5.2.
Deferred
 
tax
 
assets
183
155
4.6.
Trade
 
receivables
30
19
4.2.,
 
5.2.
Other
 
receivables
11
15
4.3.
Total
 
non
 
-current
 
assets
2,427
2,518
Current
 
assets
Inventories
1,192
1,365
4.1.
Trade
 
receivables
922
1,237
4.2.,
 
5.2.
Current
 
tax
 
receivables
27
42
Contract
 
assets
389
515
4.2.
Other
 
receivables
258
281
4.3.
Cash
 
and
 
cash
 
equivalents
919
358
5.3.,
 
5.4.
Total
 
current
 
assets
3,706
3,797
Assets
 
held
 
for
 
sale
99
82
6.3.
Total
 
assets
6,232
6,398
Equity
 
and
 
liabilities
Equity
Share
 
capital
336
336
5.5.
Share
 
premium
61
61
5.5.
Translation
 
differences
-197
-114
5.5.
Fair
 
value
 
reserve
-9
-11
5.5.
Remeasurements
 
of
 
defined
 
benefit
 
liabilities
-45
-55
4.7.
Retained
 
earnings
2,030
2,178
Total
 
equity
 
attributable
 
to
 
equity
 
holders
 
of
 
the
 
parent
company
2,177
2,396
Non
 
-controlling
 
interests
11
14
Total
 
equity
2,188
2,410
Liabilities
Non
 
-current
 
liabilities
Interest
 
-bearing
 
debt
1,129
997
5.2.,
 
5.4.,
 
5.6.
Deferred
 
tax
 
liabilities
76
83
4.6.
Pension
 
obligations
139
155
4.7.
Provisions
55
45
4.5.
Contract
 
liabilities
51
38
4.2.
Other
 
liabilities
1
1
3.4.,
 
4.4.
Total
 
non
 
-current
 
liabilities
1,451
1,317
Current
 
liabilities
Interest
 
-bearing
 
debt
198
99
5.2.,
 
5.4.,
 
5.6.
Provisions
269
278
4.5.
Trade
 
payables
411
624
4.4.,
 
5.2.,
 
5.6.
Current
 
tax
 
liabilities
56
100
Contract
 
liabilities
926
880
4.2.
Other
 
liabilities
664
622
3.4.,
 
4.4.
Total
 
current
 
liabilities
2,524
2,603
Total
 
liabilities
3,975
3,920
Liabilities
 
directly
 
attributable
 
to
 
assets
 
held
 
for
 
sale
68
68
6.3.
Total
 
equity
 
and
 
liabilities
6,232
6,398
 
The
 
notes
 
are
 
an
 
integral
 
part
 
of
 
these
 
consolidated
 
financial
 
statements.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
 
 
 
CONSOLIDATED
 
STATEMENT
 
OF
 
CASH
FLOWS
 
MEUR
2020
2019
Note
Cash
 
flow
 
from
 
operating
 
activities:
Profit
 
for
 
the
 
financial
 
period
133
218
Adjustments
 
for:
Depreciation,
 
amortisation
 
and
 
impairment
174
180
3.5.
Financial
 
income
 
and
 
expenses
43
47
5.1.
Gains
 
and
 
losses
 
on
 
sale
 
of
 
intangible
 
assets
 
and
 
property,
plant
 
and
 
equipment
 
and
 
other
 
changes
-9
-15
Share
 
of
 
result
 
of
 
associates
 
and
 
joint
 
ventures
-3
9
6.4.
Income
 
taxes
58
97
2.6.
Other
 
non-cash
 
flow
 
adjustments
7
3
Cash
 
flow
 
before
 
changes
 
in
 
working
 
capital
403
540
Changes
 
in
 
working
 
capital:
Receivables,
 
non-interest
 
-bearing,
 
increase
 
(-)
 
/
 
decrease
 
(+)
338
9
Inventories,
 
increase
 
(-)
 
/
 
decrease
 
(+)
122
-213
4.1.
Liabilities,
 
non-interest
 
-bearing,
 
increase
 
(+)
 
/
 
decrease
 
(-)
-32
74
Changes
 
in
 
working
 
capital
428
-130
Cash
 
flow
 
from
 
operating
 
activities
 
before
 
financial
 
items
 
and
taxes
832
410
Financial
 
items
 
and
 
taxes:
Interest
 
income
4
4
Interest
 
expenses
-14
-13
Other
 
financial
 
income
 
and
 
expenses
-19
-27
Income
 
taxes
 
paid
-122
-141
Financial
 
items
 
and
 
paid
 
taxes
-150
-178
Cash
 
flow
 
from
 
operating
 
activities
681
232
Cash
 
flow
 
from
 
investing
 
activities:
Acquisitions
-1
-4
6.1.
Other
 
investments
-1
-2
5.2.
Investments
 
in
 
property,
 
plant
 
and
 
equipment
 
and
 
intangible
assets
-115
-116
3.2.,
 
3.3.
Proceeds
 
from
 
sale
 
of
 
property,
 
plant
 
and
 
equipment
 
and
intangible
 
assets
13
25
3.2.,
 
3.3.
Proceeds
 
from
 
sale
 
of
 
shares
 
in
 
subsidiaries
22
1
6.2.
Proceeds
 
from
 
sale
 
of
 
shares
 
in
 
associates
 
and
 
joint
 
ventures
27
6.4.
Cash
 
flow
 
from
 
investing
 
activities
-55
-95
Cash
 
flow
 
after
 
investing
 
activities
627
137
Cash
 
flow
 
from
 
financing
 
activities:
Proceeds
 
from
 
non-current
 
debt
317
150
Repayments
 
and
 
other
 
changes
 
in
 
non-current
 
debt
-76
-105
5.6.
Loan
 
receivables,
 
increase
 
(-)
 
/
 
decrease
 
(+)
1
2
Current
 
loans,
 
increase
 
(+)
 
/
 
decrease
 
(-)
0
-18
Dividends
 
paid
-286
-284
Cash
 
flow
 
from
 
financing
 
activities
-44
-256
Change
 
in
 
cash
 
and
 
cash
 
equivalents,
 
increase
 
(+)
 
/
 
decrease
(-)
582
-119
Cash
 
and
 
cash
 
equivalents
 
at
 
the
 
beginning
 
of
 
the
 
financial
period*
369
487
Exchange
 
rate
 
changes
-19
Cash
 
and
 
cash
 
equivalents
 
at
 
the
 
end
 
of
 
the
 
financial
 
period*
932
369
 
*
 
Cash
 
and
 
cash
 
equivalents
 
on
 
31
 
December
 
2020
 
and
 
31
 
December
 
2019
 
include
 
the
 
cash
 
and
 
cash
equivalents
 
pertaining
 
to
 
assets
 
held
 
for
 
sale.
 
The
 
notes
 
are
 
an
 
integral
 
part
 
of
 
these
 
consolidated
 
financial
 
statements.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
 
 
CONSOLIDATED
 
STATEMENT
 
OF
 
CHANGES
 
IN
 
EQUITY
 
Total
 
equity
 
attributable
 
to
 
equity
 
holders
 
of
 
the
 
parent
 
company
Non
 
-
controlling
interests
Total
 
equity
MEUR
Share
 
capital
Share
 
premium
Translation
 
difference
Fair
 
value
 
reserve
Remeas
 
-
urements
of
 
defined
benefit
liabilities
Retained
 
earnings
Total
Equity
 
on
 
1
 
January
 
2019
336
61
-155
-31
-39
2,245
2,418
14
2,432
Translation
 
differences
41
41
41
Cash
 
flow
 
hedges
net
 
change
 
in
 
fair
 
value,
 
net
 
of
 
taxes
4
4
4
transferred
 
to
 
the
 
statement
 
of
 
income,
 
net
 
of
 
taxes
16
16
16
Defined
 
benefit
 
plans
-16
-16
-16
Other
 
comprehensive
 
income
41
20
-16
45
45
Profit
 
for
 
the
 
financial
 
period
217
217
1
218
Total
 
comprehensive
 
income
 
for
 
the
 
financial
 
period
41
20
-16
217
262
1
263
Dividends
 
paid
-284
-284
-1
-285
Equity
 
on
 
31
 
December
 
2019
336
61
-114
-11
-55
2,178
2,396
14
2,410
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
 
 
Total
 
equity
 
attributable
 
to
 
equity
 
holders
 
of
 
the
 
parent
 
company
Non
 
-
controlling
interests
Total
 
equity
MEUR
Share
 
capital
Share
 
premium
Translation
 
difference
Fair
 
value
 
reserve
Remeas
 
-
urements
of
 
defined
benefit
liabilities
Retained
 
earnings
Total
Equity
 
on
 
1
 
January
 
2020
336
61
-114
-11
-55
2,178
2,396
14
2,410
Translation
 
differences
-76
-76
-1
-77
Translation
 
differences,
 
transferred
 
to
 
statement
 
of
 
income
-6
-6
-6
Cash
 
flow
 
hedges
net
 
change
 
in
 
fair
 
value,
 
net
 
of
 
taxes
-3
-3
-3
transferred
 
to
 
the
 
statement
 
of
 
income,
 
net
 
of
 
taxes
5
5
5
Defined
 
benefit
 
plans
5
5
5
Other
 
changes
5
-5
Other
 
comprehensive
 
income
-82
2
10
-5
-75
-1
-76
Profit
 
for
 
the
 
financial
 
period
134
134
-1
133
Total
 
comprehensive
 
income
 
for
 
the
 
financial
 
period
-82
2
10
129
59
-1
57
Dividends
 
paid
-284
-284
-2
-286
Other
 
changes
7
7
7
Equity
 
on
 
31
 
December
 
2020
336
61
-197
-9
-45
2,030
2,177
11
2,188
 
Additional
 
information
 
on
 
share
 
capital,
 
share
 
premium,
 
translation
 
difference
 
and
 
fair
 
value
 
reserve
 
is
 
presented
 
in
 
Note
 
5.
 
5.
 
Equity.
 
The
 
notes
 
are
 
an
 
integral
 
part
 
of
 
these
 
consolidated
 
financial
 
statements.
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
 
 
 
 
NOTES
 
TO
 
THE
 
CONSOLIDATED
 
FINANCIAL
 
STATEMENTS
 
1.
 
ACCOUNTING
 
PRINCIPLES
 
FOR
 
THE
 
CONSOLIDATED
 
FINANCIAL
STATEMENTS
 
1.1.
 
BASIC
 
INFORMATION
Wärtsilä Corporation
 
is
 
a
 
Finnish
listed company
 
organised
 
under
 
the
 
laws
 
of
Finland
 
and
 
domiciled
 
in
Helsinki
.
The
 
address
 
of
 
its
 
registered
 
office
 
is
Hiililaiturinkuja 2, 00180 Helsinki
.
Wärtsilä Corporation
 
is
 
the
 
ultimate
parent
 
company
 
in
 
the
 
Wärtsilä
 
Group.
 
Wärtsilä is a global leader in smart technologies and complete lifecycle solutions for the marine and energy
markets. By emphasising sustainable innovation, total efficiency and data analytics, Wärtsilä maximises the
environmental and economic performance of the vessels and power plants of its customers.
 
In
 
2020,
Wärtsilä
’s
 
net
 
sales
 
totalled
 
EUR
 
4.6
 
billion
 
with
 
approximately
 
18,000
 
employees.
 
The
 
company
 
has
operations
 
in
 
over
 
200
 
locations
 
in
 
more
 
than
 
70
 
countries
 
around
 
the
 
world.
 
Wärtsilä
 
is
 
listed
 
on
 
Nasdaq
Helsinki.
 
These
 
consolidated
 
financial
 
statements
 
were
 
authorised
 
for
 
release
 
by
 
the
 
Board
 
of
 
Directors
 
of
Wärtsilä
Corporation
 
on
 
27
 
January
 
2021,
 
after
 
which,
 
in
 
accordance
 
with
 
the
 
Finnish
 
Corporate
 
Act,
 
the
 
shareholders
have
 
a
 
right
 
to
 
approve
 
or
 
reject
 
the
 
financial
 
statements
 
in
 
the
 
Annual
 
General
 
Meeting.
 
The
 
Annual
 
General
Meeting
 
also
 
has
 
the
 
possibility
 
to
 
decide
 
upon
 
changes
 
to
 
the
 
financial
 
statements.
 
1.2.
 
BASIS
 
OF
 
PREPARATION
The
 
consolidated
 
financial
 
statements
 
are
 
prepared
 
in
 
accordance
 
with
 
the
 
International
 
Financial
 
Reporting
Standards
 
(IFRS)
 
by
 
applying
 
IAS
 
and
 
IFRS
 
standards
 
and
 
their
 
SIC
 
and
 
IFRIC
 
interpretations,
 
which
 
were
 
in
force
 
on
 
31
 
December
 
2020.
 
International
 
Financial
 
Reporting
 
Standards
 
refer
 
to
 
the
 
standards,
 
and
 
their
interpretations,
 
approved
 
for
 
application
 
in
 
the
 
EU
 
in
 
accordance
 
with
 
the
 
procedures
 
stipulated
 
in
 
the
 
EU’s
regulation
 
(EC)
 
No.
 
1606/2002
 
and
 
embodied
 
in
 
Finnish
 
accounting
 
legislation
 
and
 
the
 
statutes
 
enacted
 
under
it.
 
The
 
notes
 
to
 
the
 
consolidated
 
financial
 
statements
 
also
 
comply
 
with
 
the
 
Finnish
 
accounting
 
and
 
corporate
legislation.
 
All
 
intragroup
 
transactions,
 
dividend
 
distributions,
 
receivables
 
and
 
liabilities,
 
as
 
well
 
as
 
unrealised
 
margins,
 
are
eliminated
 
in
 
the
 
consolidated
 
financial
 
statements.
 
In
 
the
 
consolidated
 
statements
 
of
 
income
 
and
comprehensive
 
income,
 
non-controlling
 
interests
 
have
 
been
 
separated
 
from
 
the
 
profit
 
and
 
the
 
total
comprehensive
 
income
 
for
 
the
 
financial
 
period.
 
In
 
t
 
he
 
consolidated
 
statement
 
of
 
financial
 
position,
 
non-
controlling
 
interests
 
are
 
shown
 
as
 
a
 
separate
 
item
 
under
 
equity.
 
Reporting
 
is
 
based
 
on
 
the
 
historical
 
cost
 
convention.
 
Exceptions
 
are
 
the
 
financial
 
assets
 
and
 
liabilities
 
at
 
fair
value
 
through
 
the
 
statement
 
of
 
income,
 
the
 
assets
 
and
 
liabilities
 
arising
 
from
 
pension
 
plans,
 
hedged
 
items
under
 
fair
 
value
 
hedging,
 
the
 
cash
 
-
 
and
 
share
 
-settled
 
share
 
-based
 
payment
 
transactions
 
which
 
are
 
measured
at
 
fair
 
value,
 
and
 
assets
 
held
 
for
 
sale
 
which
 
are
 
measured
 
at
 
the
 
lower
 
of
 
the
 
carrying
 
amount
 
and
 
the
 
fair
value
 
less
 
costs
 
to
 
sell.
 
The
 
figures
 
are
 
in
 
millions
 
of
 
euros
 
except
 
Note
 
7.2.
 
Related
 
party
 
disclosures,
 
which
 
is
presented
 
in
 
thousands
 
of
 
euros.
 
1.3.
 
NEW
 
AND
 
AMENDED
 
IFRS
 
STANDARDS
In
 
2020,
 
the
 
Group
 
has
 
adopt
 
ed
 
the
 
following
 
amended
 
standards
 
issued
 
by
 
the
 
IASB.
 
Amendments
 
to
 
IFRS
 
3
 
Business
 
Combinations
 
(effective
 
for
 
financial
 
periods
 
beginning
 
on
 
or
 
after
 
1
 
January
2020).
 
The
 
amendments
 
are
 
intended
 
to
 
assist
 
entities
 
to
 
determine
 
whether
 
a
 
transaction
 
should
 
be
accounted
 
for
 
as
 
a
 
business
 
combination
 
or
 
as
 
an
 
asset
 
acquisition.
 
The
 
amendments
 
clarify
 
the
 
minimum
requirements
 
for
 
a
 
business,
 
remove
 
the
 
assessment
 
of
 
whether
 
market
 
participants
 
are
 
capable
 
of
 
replacing
any
 
missing
 
elements,
 
add
 
guidance
 
to
 
help
 
entities
 
assess
 
whether
 
an
 
acquired
 
process
 
is
 
substantive,
narrow
 
the
 
definitions
 
of
 
a
 
business
 
and
 
of
 
outputs,
 
and
 
introduce
 
an
 
optional
 
fair
 
value
 
concentration
 
test.
 
The
amendments
 
have
 
no
 
impact
 
on
 
the
 
consolidated
 
financial
 
statements.
 
Amendments
 
to
 
IAS
 
1
 
Presentation
 
of
 
Financial
 
Statements
 
and
 
IAS
 
8
 
Accounting
 
Policies,
 
Changes
 
in
Accounting
 
Estimates
 
and
 
Errors
 
(effective
 
for
 
financial
 
periods
 
beginning
 
on
 
or
 
after
 
1
 
January
 
2020).
 
The
purpose
 
of
 
the
 
amendments
 
is
 
to
 
align
 
the
 
definition
 
of
 
‘material’
 
across
 
the
 
standards
 
and
 
to
 
clarify
 
certain
aspects
 
of
 
the
 
definition.
 
The
 
amendments
 
clarify
 
that
 
materiality
 
will
 
depend
 
on
 
the
 
nature
 
or
 
magnitude
 
of
information,
 
or
 
both.
 
The
 
amendments
 
have
 
no
 
impact
 
on
 
the
 
consolidated
 
financial
 
statements.
 
Amendments
 
to
 
IFRS
 
9
 
Financial
 
Instruments,
 
IAS
 
39
 
Financial
 
Instruments:
 
Recognition
 
and
 
Measurement,
and
 
IFRS
 
7
 
Financial
 
Instruments:
 
Disclosures
 
(effective
 
for
 
financial
 
periods
 
beginning
 
on
 
or
 
after
 
1
 
January
2020).
 
These
 
amendments
 
provide
 
certain
 
reliefs
 
in
 
connection
 
with
 
interest
 
rate
 
benchmark
 
reform.
 
The
reliefs
 
relate
 
to
 
hedge
 
accounting
 
and
 
have
 
the
 
effect
 
that
 
IBOR
 
reform
 
should
 
not
 
generally
 
cause
 
hedge
accounting
 
to
 
terminate.
 
Any
 
hedge
 
ineffectiveness
 
should
 
continue
 
to
 
be
 
recognised
 
in
 
the
 
statement
 
of
income.
 
The
 
amendments
 
do
 
not
 
have
 
a
 
significant
 
impact
 
on
 
the
 
consolidated
 
financial
 
statements.
 
Amendment
 
to
 
IFRS
 
16
 
Leases
 
Covid
 
-19
 
-Related
 
Rent
 
Concessions
 
(effective
 
for
 
financial
 
periods
 
beginning
on
 
or
 
after
 
1
 
June
 
2020).
 
The
 
amendment
 
introduces
 
an
 
optional
 
practical
 
expedient
 
that
 
simplifies
 
how
 
a
lessee
 
accounts
 
for
 
rent
 
concessions
 
that
 
are
 
a
 
direct
 
consequence
 
of
 
the
 
COVID-19
 
pandemic.
 
A
 
lessee
 
that
applies
 
the
 
practical
 
expedient
 
is
 
not
 
required
 
to
 
assess
 
whether
 
eligible
 
rent
 
concessions
 
are
 
lease
modifications
 
when
 
the
 
criteria
 
presented
 
in
 
the
 
amendment
 
are
 
met.
 
The
 
amendment
 
does
 
not
 
have
 
a
significant
 
impact
 
on
 
the
 
consolidated
 
financial
 
statements.
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
 
 
 
In
 
2021
 
or
 
later,
 
the
 
Group
 
will
 
adopt
 
the
 
following
 
new
 
or
 
amended
 
standar
 
ds
 
issued
 
by
 
the
 
IASB.
 
Amendments
 
to
 
IAS
 
1
 
Presentation
 
of
 
Financial
 
Statements*
 
(effective
 
for
 
financial
 
periods
 
beginning
 
on
 
or
after
 
1
 
January
 
2022).
 
The
 
amendments
 
clarify
 
that
 
liabilities
 
are
 
classified
 
as
 
either
 
current
 
or
 
non
 
-current,
depending
 
on
 
the
 
rights
 
that
 
exist
 
at
 
the
 
end
 
of
 
the
 
reporting
 
period.
 
Classification
 
is
 
unaffected
 
by
 
the
expectations
 
of
 
the
 
entity
 
or
 
events
 
after
 
the
 
reporting
 
date.
 
The
 
amendments
 
will
 
have
 
no
 
impact
 
on
 
the
consolidated
 
financial
 
statements.
 
Amendments
 
to
 
IAS
 
37:
 
Provisions,
 
Contingent
 
Liabilities
 
and
 
Contingent
 
Assets*
 
(effective
 
for
 
financial
periods
 
beginning
 
on
 
or
 
after
 
1
 
January
 
2022).
 
The
 
amendments
 
specify
 
which
 
costs
 
an
 
entity
 
needs
 
to
 
include
when
 
assessing
 
whether
 
a
 
contract
 
is
 
onerous
 
or
 
loss
 
-making.
 
The
 
amendments
 
are
 
intended
 
to
 
provide
 
clarity
and
 
help
 
to
 
ensure
 
consistent
 
application
 
of
 
the
 
standard.
 
The
 
amendments
 
apply
 
a
 
directly
 
related
 
cost
approach.
 
The
 
costs
 
that
 
relate
 
directly
 
to
 
a
 
contract
 
to
 
provide
 
goods
 
or
 
services
 
include
 
both
 
incremental
costs
 
and
 
an
 
allocation
 
of
 
costs
 
directly
 
related
 
to
 
contract
 
activities.
 
Judgement
 
will
 
be
 
required
 
in
 
determining
which
 
costs
 
are
 
directly
 
related
 
to
 
contract
 
activities.
 
The
 
amendments
 
are
 
not
 
expected
 
to
 
have
 
a
 
significant
impact
 
on
 
the
 
consolidated
 
financial
 
statements.
 
Amendments
 
to
 
IAS
 
16:
 
Property,
 
Plant
 
and
 
Equipment*
 
(effective
 
for
 
financial
 
periods
 
beginning
 
on
 
or
 
after
 
1
January
 
2022).
 
The
 
amendments
 
prohibit
 
entities
 
from
 
deducting
 
from
 
the
 
cost
 
of
 
an
 
item
 
of
 
property,
 
plant
 
and
equipment,
 
any
 
proceeds
 
of
 
the
 
sale
 
of
 
items
 
produced
 
while
 
bringing
 
that
 
asset
 
to
 
the
 
location
 
and
 
condition
necessary
 
for
 
it
 
to
 
be
 
capable
 
of
 
operating
 
in
 
the
 
manner
 
intended
 
by
 
the
 
management.
 
The
 
proceeds
 
from
selling
 
such
 
items
 
and
 
the
 
costs
 
of
 
producing
 
those
 
items
 
are
 
recognised
 
in
 
the
 
statement
 
of
 
income.
 
The
amendments
 
will
 
have
 
no
 
impact
 
on
 
the
 
consolidated
 
financial
 
statements.
 
IFRS
 
17
 
Insurance
 
Contracts*
 
(effective
 
for
 
financial
 
periods
 
beginning
 
on
 
or
 
after
 
1
 
January
 
2023).
 
IFRS
 
17
applies
 
to
 
all
 
types
 
of
 
insurance
 
contracts
 
(direct
 
insurance
 
and
 
re
 
-insurance)
 
regardless
 
of
 
the
 
type
 
of
 
entities
that
 
issue
 
them,
 
as
 
well
 
as
 
to
 
certain
 
guarantees
 
and
 
financial
 
instruments
 
with
 
discretionary
 
participation
features.
 
The
 
overall
 
objective
 
is
 
to
 
provide
 
a
 
consistent
 
accounting
 
model
 
for
 
insurance
 
contracts.
 
The
 
impact
is
 
under
 
review
 
within
 
the
 
Group.
 
*
 
Not
 
yet
 
endorsed
 
for
 
use
 
by
 
the
 
European
 
Union
 
as
 
of
 
31
 
December
 
2020
 
1.4.
 
MANAGEMENT
 
JUDGEMENT
 
AND
 
USE
 
OF
 
ESTIMATES
Preparation
 
of
 
the
 
financial
 
statements
 
in
 
accordance
 
with
 
the
 
IFRS
 
requires
 
management
 
to
 
make
judgements,
 
estimates
 
,
 
and
 
assumptions
 
that
 
affect
 
the
 
valuation
 
of
 
the
 
reported
 
assets
 
and
 
liabilities,
 
as
 
well
as
 
other
 
information,
 
such
 
as
 
contingent
 
assets
 
and
 
liabilities
 
and
 
the
 
recognition
 
of
 
income
 
and
 
expenses
 
in
the
 
statement
 
of
 
income.
 
Although
 
these
 
continuously
 
evaluated
 
judgements,
 
estimates
 
,
 
and
 
assumptions
 
are
based
 
on
 
management’s
 
past
 
experience
 
and
 
best
 
knowledge
 
of
 
current
 
events
 
and
 
actions
 
,
 
as
 
well
 
as
expectations
 
of
 
future
 
events,
 
actual
 
results
 
may
 
differ
 
from
 
the
 
estimates.
 
For
 
Wärtsilä,
 
the
 
most
 
significant
 
judgements,
 
estimates,
 
and
 
assumptions
 
made
 
by
 
the
 
management
 
relate
 
to
the
 
items
 
listed
 
below,
 
more
 
information
 
can
 
be
 
found
 
in
 
the
 
corresponding
 
note:
-
 
revenue
 
recognition,
 
especially
 
project
 
estimates
 
for
 
long
-
term
 
projects
 
and
 
agreements
 
(
N
ote
 
2.2.
Revenue
 
recognition),
-
 
uncertain
 
tax
 
positions
 
(Note
 
2.6.
 
Income
 
taxes),
 
-
 
impairment
 
testing
 
(
N
ote
 
3.1.
 
Goodwill),
 
-
 
estimating
 
useful
 
lives
 
and
 
assessing
 
indication
 
of
 
impairment
 
(
N
otes
 
3.2.
 
Other
 
intangible
 
assets
 
and
3.3.
 
Property,
 
plant
 
and
 
equi
 
pment)
 
,
-
 
determining
 
the
 
length
 
of
 
lease
 
terms
 
(Note
 
3.4.
 
Leases),
 
-
 
valuation
 
of
 
inventories
 
(Note
 
4.1.
 
Inventories),
 
-
 
valuation
 
of
 
trade
 
receivables
 
(
N
ote
 
4.2.
 
Trade
 
receivables
 
and
 
contract
 
assets
 
and
 
liabilities),
 
-
 
recognition
 
of
 
warranty
 
provisions
 
and
 
provisions
 
for
 
legal
 
cases
 
(
N
ote
 
4.5.
 
Provisions),
 
-
 
expected
 
results
 
on
 
tax
 
audits
 
and
deferred
 
tax
 
assets
 
from
 
tax
 
losses
 
(
N
ote
 
4.6.
 
Deferred
 
taxes)
,
 
and
 
-
 
defined
 
pension
 
benefit
 
obligations
 
(
Note
 
4.7.
 
Pension
 
obligations),
 
 
In
 
addition,
 
accounting
 
for
 
business
 
combinations
 
may
 
require
 
significant
 
management
 
judgement
 
(
 
Note
 
6.1.
Acquisitions).
 
The
 
COVID
 
-19
 
pandemic
 
has
 
caused
 
Wärtsilä
 
to
 
review
 
the
 
estimates
 
and
 
assumptions
 
used
 
in
 
the
preparation
 
of
 
the
 
consolidated
 
financial
 
statements.
 
The
 
possible
 
impact
 
of
 
the
 
situation
 
caused
 
by
 
the
coronavirus
 
pandemic
 
on
 
the
 
relevant
 
factors
 
in
 
each
 
estimate
 
have
 
been
 
considered.
 
The
 
impact
 
of
 
the
COVID-
 
19
 
pandemic
 
on
 
estimates
 
in
 
the
 
financial
 
reporting
 
rely
 
on
 
management’s
 
best
 
judgement.
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
 
 
 
2.
 
GROUP
 
FINANCIAL
 
PERFORMANCE
 
2.1.
 
SEGMENT
 
INFORMATION
From
 
1
 
January
 
to
 
30
 
June
 
2020,
 
Wärtsilä
 
was
 
organised
 
into
 
three
 
business
 
areas:
 
Wärtsilä
 
Marine
 
Business,
Wärtsilä
 
Energy
 
Business,
 
and
 
Portfolio
 
Business.
 
Wärtsilä
 
Marine
 
Business
 
and
 
Wärtsilä
 
Energy
 
Business
constituted
 
Wärtsilä’s
 
operating
 
and
 
reportable
 
segments,
 
while
 
Portfolio
 
Business
 
was
 
reported
 
as
 
other
business
 
activities.
 
Wärtsilä’s
 
new
 
organisational
 
structure
 
became
 
operational
 
on
 
1
 
July
 
2020.
 
In
 
the
 
new
 
organisational
 
structure,
Wärtsilä
 
Marine
 
Power,
 
Wärtsilä
 
Marine
 
Systems,
 
Wärtsilä
 
Voyage,
 
and
 
Wärtsilä
 
Energy
 
constitute
 
the
reportable
 
segments
 
of
 
the
 
Group,
 
while
 
Wärtsilä
 
Portfolio
 
Business
 
continues
 
to
 
be
 
reported
 
as
 
other
business
 
activities.
 
The
 
segments
 
and
 
other
 
business
 
activities
 
cover
 
both
 
equipment
 
sales
 
and
 
services
 
for
the
 
respective
 
business.
 
Wärtsilä's
 
highest
 
operative
 
decision
 
maker
 
(CODM,
 
Chief
 
Operating
 
Decision
 
Maker)
 
is
 
the
 
President
 
and
CEO,
 
with
 
the
 
support
 
of
 
the
 
Board
 
of
 
Management,
 
and
 
in
 
some
 
cases
 
the
 
Board
 
of
 
Directors.
 
Marine
 
Power,
 
Marine
 
Systems,
 
Voyage,
 
Energy,
 
and
 
Portfolio
 
Business
 
are
 
each
 
led
 
by
 
their
 
President.
Discrete
 
financial
 
information
 
for
 
each
 
business
 
is
 
provided
 
to
 
the
 
CODM
 
to
 
support
 
decision
 
-making.
 
The
segment
 
information
 
presented
 
by
 
Wärtsilä
 
reflects
 
internal
 
management
 
reporting.
 
Segment
 
information
 
is
reported
 
to
 
the
 
level
 
of
 
operating
 
result,
 
as
 
items
 
below
 
operating
 
result
 
are
 
not
 
allocated
 
to
 
the
 
business
 
es.
 
Internal
 
sales
 
between
 
segments
 
and
 
other
 
business
 
activities
 
are
 
not
 
reported
 
in
 
management
 
reporting,
 
but
revenue
 
and
 
costs
 
of
 
sales
 
are
 
booked
 
directly
 
to
 
the
 
respective
 
customer
 
projects
 
and
 
orders.
 
The
 
main
factors
 
affecting
 
the
 
allocation
 
of
 
indirect
 
and
 
administration
 
costs
 
to
 
the
 
segments
 
and
 
other
 
business
activities
 
are
 
net
 
sales
 
and
 
the
 
number
 
of
 
personnel.
 
Management
 
considers
 
these
 
allocation
 
principles
 
to
 
be
the
 
most
 
suitable
 
means
 
for
 
reflecting
 
the
 
costs
 
carried
 
by
 
each
 
segment
 
and
 
other
 
business
 
activities.
 
The
allocation
 
principles
 
are
 
reviewed
 
regularly.
 
The
 
aim
 
of
 
Wärtsilä
 
is
 
to
 
lead
 
the
 
industry’s
 
transformation
 
towards
 
a
 
Smart
 
Marine
 
Ecosystem.
 
Building
 
on
 
the
sound
 
foundation
 
of
 
being
 
a
 
leading
 
provider
 
of
 
innovative
 
products,
 
integrated
 
solutions,
 
and
 
lifecycle
 
services
to
 
the
 
marine
 
and
 
oil
 
&
 
gas
 
industries,
 
Wärtsilä
 
aims
 
to
 
unlock
 
new
 
customer
 
values
 
through
 
connectivity,
digitalisation,
 
and
 
smart
 
technology.
 
Wärtsilä’s
 
marine
 
customer
 
base
 
covers
 
all
 
the
 
main
 
vessel
 
segments,
 
including
 
traditional
 
merchant
 
vessels,
gas
 
carriers,
 
cruise
 
&
 
ferry,
 
navy,
 
and
 
special
 
vessels.
 
In
 
the
 
oil
 
&
 
gas
 
industry,
 
Wärtsilä
 
is
 
active
 
in
 
serving
offshore
 
installations
 
and
 
related
 
industry
 
vessels,
 
as
 
well
 
as
 
land-based
 
gas
 
installations.
 
Wärtsilä’s
customers
 
comprise
 
ship
 
owners,
 
shipyards,
 
and
 
ship
 
management
 
companies.
 
Energy
 
leads
 
the
 
transition
 
towards
 
a
 
100%
 
renewable
 
energy
 
future.
 
Wärtsilä
 
helps
 
its
 
customers
 
unlock
 
the
value
 
of
 
the
 
energy
 
transition
 
by
 
optimising
 
their
 
energy
 
systems
 
and
 
future-proofing
 
their
 
assets.
 
Wärtsilä
 
Marine
 
Power
Marine
 
Power
 
focuses
 
on
 
Wärtsilä’s
 
comprehensive
 
range
 
of
 
engine
 
and
 
propulsion
 
solutions.
 
Its
 
offering,
which
 
includes
 
engines,
 
generating
 
sets,
 
gearboxes,
 
propulsion
 
equipment,
 
as
 
well
 
as
 
LNG
 
fuel
 
handling,
power
 
management,
 
and
 
NOx
 
reduction
 
technologies
 
,
 
positions
 
Marine
 
Power
 
as
 
a
 
leading
 
partner
 
for
 
its
customers
 
in
 
the
 
decarbonisation
 
of
 
the
 
maritime
 
industry,
 
particularly
 
through
 
fuel
 
flexibility
 
and
 
hybrid
solutions.
 
Marine
 
Power
 
has
 
six
 
business
 
units:
 
Power
 
Supply,
 
Propulsion,
 
Parts,
 
Performance,
 
Projects,
 
and
 
Field
Services
 
&
 
Workshops.
 
The
 
Marine
 
Power
 
setup
 
has
 
been
 
specifically
 
designed
 
to
 
support
 
its
 
customers
throughout
 
the
 
entire
 
lifecycle
 
of
 
their
 
vessels:
 
from
 
designing,
 
developing,
 
and
 
delivering
 
high
 
quality
 
products
and
 
solutions
 
that
 
ensure
 
superior
 
performance
 
and
 
that
 
are
 
capable
 
of
 
meeting
 
evolving
 
environmental
requirements,
 
to
 
assisting
 
customers
 
with
 
a
 
wide
 
service
 
network
 
supplying
 
spare
 
parts,
 
competent
 
field
service
 
personnel,
 
and
 
product
 
and
 
solution
 
upgrades,
 
as
 
well
 
as
 
reducing
 
operational
 
risk.
 
Wärtsilä
 
Marine
 
Systems
Marine
 
Systems
 
consists
 
of
 
four
 
end-to-
 
end
 
business
 
units:
 
Exhaust
 
Treatment,
 
Gas
 
Solutions,
 
Marine
Electrical
 
Systems,
 
and
 
Shaft
 
Line
 
Solutions.
 
Exhaust
 
Treatment
 
focuses
 
on
 
developing
 
the
 
exhaust
 
gas
 
cleaning
 
business.
 
Wärtsilä’s
 
exhaust
 
gas
 
cleaning
technology
 
is
 
an
 
economical
 
and
 
environmentally
 
friendly
 
solution
 
for
 
addressing
 
all
 
existing
 
and
 
anticipated
rules
 
and
 
regulations.
 
Wärtsilä
 
scrubber
 
systems
 
are
 
designed
 
to
 
provide
 
flexibility
 
and
 
reliable
 
operations
wherever
 
custom
 
ers
 
operate.
 
Gas
 
Solutions
 
is
 
the
 
leading
 
technology
 
and
 
service
 
provider
 
for
 
the
 
gas
 
value
 
chain,
 
with
 
a
 
broad
 
range
 
of
products
 
covering
 
cargo
 
handling
 
systems
 
for
 
gas
 
carriers,
 
liquefaction
 
and
 
gasification
 
systems
 
for
 
various
applications,
 
fuel
 
systems
 
for
 
alternative
 
engine
 
configurations
 
and
 
fuels,
 
and
 
renewable
 
gas
 
systems
 
with
solutions
 
for
 
biogas
 
upgrading
 
and
 
liquefaction.
 
Marine
 
Electrical
 
Systems
 
offers
 
comprehensive
 
electrical
 
turnkey
 
solutions
 
to
 
selected
 
niche
 
segments
 
,
 
such
as
 
navy
 
and
 
super
 
yachts,
 
assuming
 
responsibility
 
for
 
the
 
entire
 
project
 
from
 
basic
 
design
 
to
 
commissioning.
 
Shaft
 
Line
 
Solutions
 
(formerly
 
Seals
 
&
 
Bearings)
 
comprises
 
all
 
capabilities
 
required
 
to
 
provide
 
complete
integrated
 
shaft
 
line
 
solutions
 
from
 
its
 
global
 
factories
 
and
 
service
 
locations
 
to
 
customers
 
in
 
its
 
core
 
market
segments,
 
namely
 
navy,
 
merchant,
 
and
 
cruise.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
 
 
 
Wärtsilä
 
Voyage
Voyage
 
helps
 
transform
 
the
 
way
 
vessels
 
perform
 
their
 
voyage
 
by
 
leveraging
 
the
 
latest
 
digital
 
technologies
 
to
deliver
 
a
 
step
 
-change
 
in
 
safety,
 
efficiency,
 
reliability,
 
and
 
emissions.
 
By
 
combining
 
bridge
 
systems,
 
cloud
 
data
management,
 
data
 
services,
 
decision
 
support
 
tools,
 
and
 
access
 
to
 
real-time
 
information,
 
Voyage
 
collaborates
in
 
creating
 
the
 
digital
 
ecosystem
 
of
 
the
 
future.
 
Voyage
 
has
 
one
 
of
 
the
 
largest
 
installed
 
bases
 
and
 
offerings
 
of
navigation,
 
automation,
 
simulation,
 
and
 
training
 
solutions,
 
and
 
ship
 
traffic
 
control
 
solutions.
 
Serving
 
the
 
key
 
market
 
segments
 
across
 
cruise,
 
ferry,
 
merchant,
 
navy,
 
and
 
non
 
-vessel
 
related
 
segments,
 
such
as
 
port
 
authorities
 
and
 
maritime
 
institutes,
 
Voyage
 
is
 
active
 
in
 
both
 
the
 
newbuild
 
and
 
existing
 
vessel
 
markets.
Voyage
 
executes
 
a
 
growth
 
strategy
 
based
 
on
 
innovative
 
product
 
development,
 
system
 
integration,
connectivity,
 
remote
 
operations,
 
and
 
cyber
 
security,
 
in
 
line
 
with
 
the
 
development
 
of
 
a
 
Smart
 
Marine
 
Ecosystem.
 
Wärtsilä
 
Energy
Wärtsilä’s
 
offering
 
comprises
 
flexible
 
power
 
plants,
 
energy
 
management
 
and
 
storage
 
systems,
 
as
 
well
 
as
lifecycle
 
services
 
that
 
enable
 
increased
 
efficiency
 
and
 
guaranteed
 
performance.
 
Wärtsilä’s
 
three
 
main
 
customer
 
segments
 
in
 
the
 
energy
 
markets
 
are
 
utilities,
 
independent
 
power
 
producers,
and
 
industrial
 
customers.
 
Wärtsilä’s
 
energy
 
solutions
 
are
 
used
 
for
 
a
 
wide
 
variety
 
of
 
applications.
 
These
 
include
baseload
 
generation,
 
capacity
 
for
 
grid
 
stability,
 
peaking
 
and
 
load
 
-following
 
generation,
 
and
 
for
 
the
 
integration
 
of
wind
 
and
 
solar
 
power.
 
Wärtsilä
 
provides
 
its
 
customers
 
with
 
a
 
comprehensive
 
understanding
 
of
 
energy
 
systems,
including
 
fully
 
integrated
 
assets
 
and
 
software,
 
complete
 
with
 
value
 
adding
 
lifecycle
 
services.
 
Wärtsilä
 
Portfolio
 
Business
Wärtsilä
 
reports
 
Portfolio
 
Business
 
as
 
other
 
business
 
activities.
 
Portfolio
 
Business
 
consists
 
of
 
multiple
 
business
 
units,
 
which
 
are
 
run
 
independently
 
with
 
the
 
aim
 
of
 
accelerating
performance
 
improvement
 
and
 
unlocking
 
value
 
through
 
divestments
 
or
 
other
 
strategic
 
alternatives.
 
The
business
 
units
 
included
 
in
 
Portfolio
 
Business
 
comprise
 
Entertainment
 
Systems,
 
Special
 
Products
 
covering
power
 
converter
 
products
 
and
 
UPS
 
systems,
 
Tank
 
Control
 
Systems,
 
Water
 
&
 
Waste,
 
as
 
well
 
as
 
American
Hydro,
 
the
 
hydropower
 
solutions
 
and
 
turbine
 
services
 
business
 
.
 
Until
 
30
 
September
 
2020,
 
Portfolio
 
Business
 
also
 
included
 
Wärtsilä
 
JOVYATLAS
 
GmbH
 
and
 
Wärtsilä
 
Valves
Ltd.
 
On
 
1
 
October,
 
Wärtsilä
 
divested
 
100%
 
of
 
the
 
shares
 
of
 
Wärtsilä
 
JOVYATLAS
 
and
 
100%
 
of
 
the
 
shares
 
of
Wärtsilä
 
Valves.
 
Portfolio
 
Business
 
also
 
included
 
Wärtsilä
 
ELAC
 
Nautik
 
GmbH
 
until
 
the
 
divestment
 
of
 
shares,
 
which
 
was
finalised
 
on
 
2
 
December
 
2020.
 
The
 
comparison
 
figures
 
for
 
the
 
segment
 
reporting
 
and
 
service
 
information
 
have
 
been
 
restated
 
to
 
reflect
 
the
new
 
reporting
 
structure.
 
MEUR
2020
2019
Net
 
sales
Marine
 
Power
1,748
1,923
Marine
 
Systems
808
952
Voyage
248
280
Energy
1,620
1,779
Portfolio
 
Business
181
236
Total
4,604
5,170
Depreciation,
 
amortisation
 
and
 
impairment
Marine
 
Power
-68
-88
Marine
 
Systems
-20
-23
Voyage
-27
-26
Energy
-32
-31
Portfolio
 
Business
-28
-11
Total
-174
-180
Share
 
of
 
result
 
of
 
associates
 
and
 
joint
 
ventures
Marine
 
Power
2
-9
Total
3
-9
Operating
 
result
Marine
 
Power
134
221
Marine
 
Systems
81
53
Voyage
-42
-37
Energy
91
131
Portfolio
 
Business
-29
-7
Total
234
362
Operating
 
result
 
as
 
a
 
percentage
 
of
 
net
 
sales
 
(%)
Marine
 
Power
7.7
11.5
Marine
 
Systems
10.0
5.6
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
 
 
Voyage
-17.0
-13.3
Energy
5.6
7.4
Portfolio
 
Business
-16.2
-2.8
Total
5.1
7.0
Comparable
 
operating
 
result
Marine
 
Power
137
273
Marine
 
Systems
83
60
Voyage
-41
-31
Energy
101
155
Portfolio
 
Business
-6
Total
275
457
Comparable
 
operating
 
result
 
as
 
a
 
percentage
 
of
 
net
 
sales
 
(%)
Marine
 
Power
7.8
14.2
Marine
 
Systems
10.3
6.3
Voyage
-16.5
-11.2
Energy
6.3
8.7
Portfolio
 
Business
-3.1
0.1
Total
6.0
8.8
 
Alternative
 
performance
 
measures
Wärtsilä
 
provides
 
certain
 
financial
 
performance
 
measures,
 
which
 
are
 
not
 
defined
 
by
 
IFRS.
 
These
 
alternative
performance
 
measures
 
are
 
followed
 
and
 
used
 
by
 
management
 
to
 
measure
 
the
 
Group's
 
performance
 
and
financial
 
position,
 
and
 
also
 
provide
 
useful
 
information
 
to
 
the
 
capital
 
markets.
 
The
 
alternative
 
performance
 
measures
 
should
 
not
 
be
 
evaluated
 
in
 
isolation
 
from
 
the
 
corresponding
 
IFRS
measures.
 
The
 
alternative
 
performance
 
measure
 
calculation
 
definitions
 
are
 
disclosed
 
in
 
Calculations
 
of
financial
 
ratios.
 
 
Wärtsilä
 
discloses
 
certain
 
comparable
 
performance
 
measures
 
to
 
enhance
 
comparability
 
between
 
periods.
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
 
discontinue
 
d
 
businesses.
 
The
 
reconciliation
 
of
 
the
 
comparable
 
operating
 
result
 
to
 
the
 
operating
 
result
 
is
 
presented
 
in
 
the
 
table
 
below.
 
Measures
 
of
 
profit
 
and
 
items
 
affecting
 
comparability
 
 
MEUR
2020
2019
Comparable
 
adjusted
 
EBITA
308
498
Purchase
 
price
 
allocation
 
amortisation
-33
-41
Comparable
 
operating
 
result
275
457
Items
 
affecting
 
comparability:
Social
 
plan
 
costs
-12
-31
Impairment
 
and
 
write
 
-downs
-22
-36
Profits
 
and
 
losses
 
from
 
disposals
6
Other
 
costs
-14
-27
Items
 
affecting
 
comparability,
 
total
-41
-95
Operating
 
result
234
362
 
Entity
 
wide
 
information
In
 
addition
 
to
 
segment
 
information,
 
Wärtsilä
 
reports
 
the
 
service
 
net
 
sales
 
for
 
all
 
segments
 
and
 
for
 
other
business
 
activities.
 
Wärtsilä
 
continues
 
to
 
report
 
information
 
for
 
the
 
geographical
 
areas
 
Finland,
 
other
 
Europe
 
an
 
countries,
 
Asia,
 
the
Americas,
 
and
 
other.
 
In
 
the
 
geographical
 
information
 
provided,
 
net
 
sales
 
are
 
split
 
by
 
customer
 
destination
 
and
non-current
 
assets
 
by
 
origin.
 
Non-current
 
assets
 
consi
 
st
 
of
 
goodwill,
 
intangible
 
assets,
 
property,
 
plant
 
and
equipment,
 
right-
 
of-use
 
assets,
 
and
 
investments
 
in
 
associates
 
and
 
joint
 
ventures.
 
Geographical
 
information
During
 
the
 
financial
 
period
 
1
 
January
 
-
 
31
 
December
 
2020
 
and
 
1
 
January
 
-
 
31
 
December
 
2019
 
Wärtsilä
 
did
 
not
have
 
any
 
individual
 
significant
 
customers
 
or
 
countries.
 
Of
 
the
 
total
 
net
 
sales,
 
sales
 
to
 
the
 
USA
 
represented
11%
 
(11)
 
and
 
sales
 
to
 
China
 
10%
 
(11).
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
 
 
 
MEUR
2020
2019
Net
 
sales
Finland
98
78
Other
 
European
 
countries
1,445
1,612
Asia
1,570
1,968
The
 
Americas
1,077
1,098
Other
415
414
Total
4,604
5,170
Non
 
-current
 
assets
Finland
329
324
Other
 
European
 
countries
1,515
1,595
Asia
97
114
The
 
Americas
235
271
Other
6
7
Total
2,183
2,310
 
Service
 
net
 
sales
 
MEUR
2020
2019
Net
 
sales
Marine
 
Power,
 
service
1,096
1,279
Marine
 
Systems,
 
service
219
202
Voyage,
 
service
85
103
Energy,
 
service
782
802
Portfolio
 
Business,
 
service
74
119
Total
2,255
2,505
 
2.2.
 
REVENUE
 
RECOGNITION
Accounting
 
principles
Revenue
 
is
 
presented
 
net
 
of
 
indirect
 
sales
 
taxes,
 
penalties
 
and
 
discounts.
 
Revenue
 
is
 
recognised
 
when
control
 
of
 
the
 
goods
 
or
 
services
 
is
 
transferred
 
to
 
the
 
customer
 
at
 
an
 
amount
 
that
 
reflects
 
the
 
consideration
to
 
which
 
the
 
Group
 
expects
 
to
 
be
 
entitled
 
in
 
exchange
 
for
 
those
 
goods
 
and
 
services.
 
The
 
transaction
 
price
may
 
include
 
variable
 
considerations,
 
such
 
as
 
penalties,
 
performance
 
bonuses
 
and
 
discounts.
 
Revenue
recognised
 
by
 
the
 
reporting
 
date
 
corresponds
 
to
 
the
 
benefit
 
of
 
the
 
service
 
provided
 
by
 
Wärtsilä
 
to
 
the
customer.
The
 
Group
 
recognises
 
revenue
 
when
 
it
 
satisfies
 
an
 
identified
 
performance
 
obligation
 
by
 
transferring
promised
 
goods
 
or
 
service
 
s
 
to
 
the
 
customer.
 
Goods
 
and
 
services
 
are
 
generally
 
considered
 
to
 
be
 
transferred
when
 
the
 
customer
 
obtains
 
control
 
of
 
them.
 
Such
 
control
 
is
 
transferred
 
either
 
at
 
a
 
point
 
in
 
time
 
or
 
over
 
time.
Revenue
 
from
 
contracts
 
with
 
customers
 
is
 
derived
 
from
 
four
 
revenue
 
types.
 
All
 
these
 
revenue
 
types
 
are
represented
 
within
 
all
 
reportable
 
segments
 
and
 
other
 
business
 
activities
 
:
 
Marine
 
Power,
 
Marine
 
Systems,
Voyage
 
,
 
Energy
 
and
 
Portfolio
 
Business.
Product
 
sales
 
consist
 
of
 
sales
 
of
 
spare
 
parts
 
and
 
standard
 
equipment
 
,
 
for
 
which
 
the
 
revenue
 
is
 
recognised
at
 
a
 
point
 
in
 
time
 
when
 
the
 
control
 
of
 
the
 
product
 
has
 
transferred
 
to
 
the
 
custom
 
er,
 
in
 
general
 
upon
 
delivery
of
 
the
 
goods.
 
Product
 
sale
 
contracts
 
generally
 
include
 
one
 
performance
 
obligation.
Goods
 
and
 
services
 
-type
 
of
 
revenue
 
involves
 
short-term
 
field
 
service
 
jobs,
 
including
 
the
 
delivery
 
of
 
a
combination
 
of
 
service
 
and
 
equipment.
 
The
 
revenue
 
is
 
recognised
 
at
 
a
 
point
 
in
 
time
 
when
 
the
 
service
 
is
rendered.
 
Goods
 
and
 
service
 
-type
 
contracts,
 
such
 
as
 
service
 
orders,
 
generally
 
include
 
one
 
performance
obligation.
Projects
 
are
 
of
 
both
 
short-
 
and
 
long-term
 
duration
 
.
 
Depending
 
on
 
the
 
contract
 
terms
 
and
 
the
 
duration
 
of
 
the
project,
 
the
 
revenue
 
is
 
recognised
 
at
 
a
 
point
 
in
 
time
 
or
 
over
 
time.
 
In
 
large-scale
 
system
 
or
 
equipment
deliveries
 
which
 
require
 
engineering,
 
for
 
example
 
power
 
plants
 
and
 
gas
 
solution
 
s
 
construction
 
contracts,
 
the
reven
 
ue
 
is
 
recognised
 
over
 
time
 
as
 
the
 
asset
 
produced
 
does
 
not
 
have
 
alternative
 
use
 
and
 
the
 
Group
 
has
 
an
enforceable
 
right
 
to
 
payment.
 
These
 
contracts
 
usually
 
contain
 
one
 
performance
 
obligation.
 
Revenue
 
from
tailor-made
 
equipment
 
delivery
 
projects
 
is
 
recognised
 
at
 
a
 
point
 
in
 
time
 
when
 
the
 
control
 
of
 
the
 
equipment
 
is
transferred,
 
in
 
general
 
upon
 
delivery.
 
These
 
contracts
 
generally
 
represent
 
one
 
performance
 
obligation,
 
but
under
 
certain
 
circumstances
 
they
 
can
 
contain
 
multiple
 
performance
 
obligations
 
when
 
a
 
contract
 
contains
multiple
 
units
 
of
 
delivery.
 
Revenue
 
from
 
service
 
related
 
projects
 
,
 
such
 
as
 
modernisation
 
and
 
upgrade
projects
 
is
 
recognised
 
over
 
time
 
because
 
the
 
customer
 
typically
 
controls
 
the
 
asset
 
that
 
is
 
enhanced.
 
Service
related
 
projects
 
usually
 
contain
 
one
 
performance
 
obligation.
Long-term
 
agreements
 
include
 
long-term
 
operating
 
and
 
maintenance
 
agreements
 
for
 
which
 
the
 
revenue
 
is
recognised
 
over
 
time
 
because
 
the
 
customer
 
simultaneously
 
receives
 
and
 
consumes
 
the
 
service
 
provided.
These
 
contracts
 
generally
 
c
 
ontain
 
one
 
performance
 
obligation
 
per
 
installation.
Contracts
 
with
 
customers
 
often
 
include
 
warranties
 
in
 
line
 
with
 
Wärtsilä’s
 
General
 
terms
 
and
 
conditions,
which
 
are
 
regarded
 
as
 
part
 
of
 
the
 
promise
 
to
 
the
 
customer.
 
Extended
 
warranties
 
or
 
warranties
 
purchased
 
as
an
 
option
 
are
 
identified
 
as
 
separate
 
performance
 
obligations
 
with
 
revenue
 
being
 
recognised
 
evenly
 
over
 
the
warranty
 
period.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
 
 
Revenue
 
recognised
 
over
 
time
 
is
 
measured
 
in
 
accordance
 
with
 
the
 
input
 
method
 
(progress
 
measured
based
 
on
 
costs
 
incurred)
 
when
 
the
 
outcome
 
of
 
the
 
contract
 
can
 
be
 
estimated
 
reliably.
 
When
 
the
 
outcome
cannot
 
be
 
reliably
 
determined,
 
the
 
costs
 
arising
 
are
 
expensed
 
in
 
the
 
same
 
reporting
 
period
 
in
 
which
 
they
occur,
 
but
 
the
 
revenue
 
is
 
recorded
 
only
 
to
 
the
 
extent
 
that
 
the
 
company
 
will
 
receive
 
an
 
amount
corresponding
 
to
 
actual
 
costs.
 
Any
 
losses
 
are
 
expensed
 
immediately.
 
If
 
revenue
 
for
 
goods
 
and
 
services
 
is
recognised
 
at
 
a
 
point
 
in
 
time,
 
it
 
is
 
when
 
control
 
is
 
transferred
 
to
 
the
 
customer.
 
The
 
transfer
 
of
 
control
 
is
based
 
mainly
 
on
 
transferring
 
risks
 
and
 
rewards
 
according
 
to
 
the
 
delivery
 
terms.
Should
 
there
 
be
 
multiple
 
contracts
 
entered
 
into
 
with
 
the
 
same
 
client
 
at
 
near
 
the
 
same
 
time,
 
the
 
combination
of
 
the
 
contracts
 
is
 
evaluated.
The
 
Group
 
applies
 
the
 
practical
 
expedient
 
according
 
to
 
IFRS
 
15.63
 
concerning
 
significant
 
financing
components
 
arising
 
from
 
contracts
 
with
 
customers.
 
In
 
case
 
the
 
lead
 
time
 
between
 
the
 
payments
 
specified
 
in
the
 
contract
 
and
 
the
 
corresponding
 
transferral
 
of
 
the
 
promised
 
good
 
or
 
service
 
to
 
the
 
customer
 
is
 
one
 
year
or
 
less,
 
no
 
adjustment
 
is
 
made
 
for
 
the
 
effect
 
of
 
a
 
possible
 
significant
 
financing
 
component.
The
 
Group
 
also
 
applies
 
the
 
practical
 
expedient
 
stated
 
in
 
IFRS
 
15.94
 
according
 
to
 
which
 
an
 
entity
 
can
recognise
 
the
 
incremental
 
costs
 
of
 
obtaining
 
a
 
contract
 
as
 
an
 
expense
 
when
 
incurred
 
if
 
the
 
amortisation
period
 
of
 
the
 
asset
 
that
 
the
 
entity
 
would
 
have
 
recognised
 
is
 
one
 
year
 
or
 
less.
 
Wärtsilä
 
has
 
not
 
incurred
 
any
costs
 
for
 
obtaining
 
a
 
contract
 
to
 
be
 
recognised
 
as
 
an
 
asset.
Accounting
 
estimates
 
and
 
judgemen
 
ts
Revenue
 
from
 
certain
 
projects
 
and
 
long
 
-term
 
agreements
 
is
 
recognised
 
over
 
time
 
according
 
to
 
the
 
input
method
 
when
 
the
 
profit
 
on
 
the
 
project
 
or
 
agreement
 
can
 
be
 
reliably
 
determined.
 
The
 
progress
 
and
 
the
profitability
 
are
 
based
 
on
 
the
 
management’s
 
estimates,
 
which
 
require
 
significant
 
judgement
 
concerning
 
the
stage
 
of
 
completion,
 
the
 
cost
 
to
 
complete,
 
and
 
the
 
time
 
of
 
completion.
 
These
 
estimates
 
are
 
reviewed
regularly.
 
Recognised
 
revenue
 
and
 
costs
 
recorded
 
are
 
adjusted
 
during
 
the
 
project
 
when
 
assumptions
concerning
 
the
 
outcome
 
of
 
the
 
entire
 
project
 
are
 
updated.
 
Changes
 
in
 
assumptions
 
relate
 
to
 
changes
 
in
 
the
project’s
 
or
 
agreement’s
 
schedule,
 
the
 
scope
 
of
 
supply,
 
technology,
 
costs,
 
and
 
any
 
other
 
relevant
 
factors.
Establishing
 
whether
 
distinct
 
goods
 
or
 
services
 
are
 
considered
 
as
 
separate
 
performance
 
obligations
requires
 
judgement
 
and
 
might
 
impact
 
the
 
timing
 
and
 
amount
 
of
 
revenue
 
recognition.
Project
 
business
 
contracts
 
usually
 
involve
 
elements
 
of
 
variable
 
consideration.
 
At
 
each
 
reporting
 
date,
management
 
reassesses
 
the
 
transaction
 
price,
 
which
 
requires
 
significant
 
judgement
 
as
 
it
 
affects
 
the
 
timing
of
 
the
 
revenue
 
recognition.
 
The
 
valuation
 
of
 
accounts
 
receivables
 
also
 
includes
 
estimates
 
mainly
concerning
 
the
 
recoverability
 
of
 
receivables.
Determining
 
whether
 
different
 
contracts
 
with
 
the
 
same
 
customer
 
are
 
accounted
 
for
 
as
 
one
 
contract
 
involves
the
 
use
 
of
 
judgement,
 
as
 
it
 
requires
 
an
 
assessment
 
of
 
whether
 
the
 
contracts
 
are
 
negotiated
 
together
 
or
linked
 
in
 
any
 
other
 
way.
 
The
 
timing
 
and
 
amount
 
of
 
revenue
 
recognition
 
can
 
vary
 
depending
 
on
 
whether
 
two
contracts
 
are
 
accounted
 
for
 
separately,
 
or
 
as
 
one
 
single
 
arrangement.
Warranty
 
provisions
 
are
 
recorded
 
on
 
the
 
recognition
 
of
 
revenue.
 
The
 
provision
 
is
 
based
 
on
 
the
 
accumulated
experience
 
of
 
the
 
level
 
of
 
warranty
 
needed
 
to
 
manage
 
future
 
and
 
current
 
cost
 
claims.
 
Products
 
can
 
contain
new
 
and
 
complex
 
technology
 
that
 
can
 
affect
 
warranty
 
estimates
 
,
 
with
 
the
 
result
 
that
 
earlier
 
recognised
provisions
 
are
 
not
 
always
 
sufficient.
 
Net
 
sales
 
by
 
revenue
 
type
 
MEUR
2020
2019
Products
Marine
 
Power
586
650
Marine
 
Systems
139
133
Voyage
21
24
Energy
319
337
Portfolio
 
Business
27
38
Total
1,091
1,184
Goods
 
and
 
services
Marine
 
Power
309
369
Marine
 
Systems
60
69
Voyage
47
63
Energy
88
92
Portfolio
 
Business
8
10
Total
511
603
Projects
Marine
 
Power
712
726
Marine
 
Systems
606
750
Voyage
173
185
Energy
919
1,053
Portfolio
 
Business
147
187
Total
2,557
2,899
Long
 
-term
 
agreements
Marine
 
Power
142
178
Marine
 
Systems
2
1
Voyage
7
8
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
 
 
Energy
293
296
Portfolio
 
Business
2
Total
445
484
Total
4,604
5,170
 
 
Timing
 
of
 
satisfying
 
performance
 
obligations
 
MEUR
2020
2019
At
 
a
 
point
 
in
 
time
Marine
 
Power
1,536
1,687
Marine
 
Systems
546
618
Voyage
169
195
Energy
809
1,102
Portfolio
 
Business
90
124
Total
3,150
3,728
Over
 
time
Marine
 
Power
213
236
Marine
 
Systems
261
334
Voyage
79
85
Energy
811
676
Portfolio
 
Business
92
113
Total
1,455
1,442
Total
4,604
5,170
 
2.3.
 
OTHER
 
OPERATING
 
INCOME
 
AND
 
EXPENSES
Accounting
 
principles
Other
 
operating
 
income
 
and
 
expenses
 
comprise
 
income
 
and
 
expenses
 
that
 
do
 
not
 
directly
 
relate
 
to
 
the
operating
 
activities.
Other
 
operating
 
income
 
includes
 
,
 
for
 
example,
 
gains
 
from
 
the
 
sale
 
of
 
assets
 
and
 
regular
 
incomes,
 
such
 
as
rental
 
income
 
,
 
and
 
gains
 
relating
 
to
 
business
 
combinations,
 
which
 
have
 
not
 
been
 
derived
 
from
 
primary
activities.
 
Other
 
operating
 
income
 
includes
 
also
 
grants.
 
Government
 
al
 
and
 
other
 
grants
 
are
 
recognised
 
in
the
 
statement
 
of
 
income
 
on
 
a
 
systematic
 
basis
 
in
 
the
 
same
 
periods
 
in
 
which
 
the
 
expenses
 
are
 
incurred.
Other
 
operating
 
expenses
 
include,
 
for
 
example
 
,
 
travel
 
costs,
 
legal
 
and
 
consultancy
 
costs,
 
rental
 
costs,
voluntary
 
personnel
 
related
 
costs,
 
and
 
administrative
 
costs.
 
Also
 
,
 
expenses
 
related
 
to
 
short
 
-term
 
lease
contracts
 
and
 
lease
 
contracts
 
of
 
low-value
 
assets
 
are
 
recognised
 
in
 
other
 
operating
 
expenses
 
.
 
In
 
addition,
losses
 
related
 
to
 
the
 
sale
 
of
 
assets
 
,
 
as
 
well
 
as
 
losses
 
arising
 
from
 
modifications
 
and
 
terminations
 
of
 
lease
agreements
 
,
 
are
 
recognised
 
in
 
other
 
operating
 
expenses.
 
Other
 
operating
 
income
 
MEUR
2020
2019
Capital
 
gains
11
15
Government
 
grants
17
8
Sale
 
of
 
scrapped
 
material
2
3
Sale
 
of
 
by-products
2
2
Rental
 
income
0
1
Income
 
related
 
to
 
cancelled
 
orders*
2
2
Insurance
 
indemnities
3
9
Other**
24
27
Total
61
67
 
*
 
Expenses
 
related
 
to
 
cancelled
 
orders
 
are
 
reco
 
gnised
 
on
 
respective
 
expense
 
accounts.
**
 
Other
 
does
 
not
 
include
 
any
 
significant
 
single
 
items.
 
Other
 
operating
 
expenses
 
MEUR
2020
2019
Travel
 
costs
75
134
Rental
 
costs
40
48
Legal
 
and
 
consultancy
 
costs
77
95
Information
 
technology
 
costs
59
65
Other
 
personnel
 
related
 
costs
48
59
Administrative
 
costs
39
49
Other*
93
128
Total
431
578
 
*
 
Other
 
does
 
not
 
include
 
any
 
significant
 
single
 
items.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
 
 
 
2.4.
 
MATERIAL
 
AND
 
SERVICES
Accounting
 
principles
Material
 
and
 
services
 
expenses
 
relate
 
to
 
purchases
 
of
 
goods
 
and
 
consumables
 
from
 
suppliers
 
for
manufacturing
 
less
 
discounts
 
and
 
tax
 
refunds
 
related
 
to
 
purchases.
 
Exchange
 
gains
 
or
 
losses
 
on
 
accounts
payable
 
are
 
included.
 
MEUR
2020
2019
Purchases
 
during
 
the
 
financial
 
period
-1,475
-1,723
Change
 
in
 
inventories
-50
7
External
 
services
-1,026
-1,287
Total
-2,551
-3,003
 
2.5.
 
EMPLOYEE
 
BENEFIT
 
EXPENSES
Accounting
 
principles
Employee
 
benefits
 
are
 
all
 
forms
 
of
 
consideration
 
given
 
in
 
exchange
 
for
 
service
 
s
 
rendered
 
by
 
employees
 
or
for
 
the
 
termination
 
of
 
employment.
 
In
 
addition,
 
the
 
Group
 
has
 
personnel
 
expenses
 
related
 
to
 
share
 
-based
payments
 
and
 
other
 
personnel
 
expenses.
The
 
company’s
 
incentive
 
scheme,
 
which
 
is
 
tied
 
to
 
the
 
price
 
development
 
of
 
the
 
company’s
 
share
 
during
 
a
pre-determined
 
timeframe,
 
is
 
measured
 
at
 
the
 
fair
 
value
 
of
 
the
 
share
 
on
 
the
 
reporting
 
date
 
and
 
reported
 
in
the
 
statement
 
of
 
income
 
for
 
the
 
term-to
 
-maturity
 
of
 
the
 
bonus
 
scheme.
 
An
 
upper
 
limit
 
is
 
set
 
for
 
the
 
bonus.
When
 
a
 
bonus
 
scheme
 
ends,
 
and
 
the
 
employment
 
requirement
 
is
 
fulfilled,
 
the
 
bonus
 
is
 
settled
 
in
 
cash
and/or
 
shares.
The
 
Group
 
companies
 
have
 
various
 
pension
 
and
 
other
 
post
 
-employment
 
benefit
 
plans
 
in
 
accordance
 
with
local
 
conditions
 
and
 
practices
 
worldwide.
 
These
 
plans
 
are
 
classified
 
either
 
as
 
defined
 
contribution
 
plans
 
or
defined
 
benefit
 
plans.
In
 
defined
 
contribution
 
plans,
 
the
 
Group
 
pay
 
s
 
fixed
 
contributions
 
into
 
a
 
separate
 
entity
 
,
 
such
 
as
 
an
insurance
 
company.
 
The
 
Group
 
has
 
no
 
legal
 
or
 
constructive
 
obligation
 
to
 
pay
 
further
 
contributions
 
if
 
the
fund
 
does
 
not
 
hold
 
sufficient
 
assets
 
to
 
pay
 
employee
 
benefits.
 
The
 
contributions
 
are
 
recognised
 
in
employee
 
benefit
 
expenses
 
in
 
the
 
statement
 
of
 
income
 
in
 
the
 
period
 
to
 
which
 
they
 
relate.
Accounting
 
principles
 
for
 
defined
 
benefit
 
plans
 
are
 
presented
 
in
 
Note
 
4.7.
 
Pension
 
obligations.
 
MEUR
2020
2019
Wages
 
and
 
salaries
984
1,028
Pension
 
costs
Defined
 
benefit
 
plans
12
12
Defined
 
contribution
 
plans
64
74
Other
 
compulsory
 
personnel
 
costs
132
146
Total
1,192
1,260
 
Management
 
remuneration
 
is
 
specified
 
in
 
Note
 
7.2.
 
Related
 
party
 
disclosures.
 
Long-term
 
incentive
 
schemes
Wages
 
and
 
salaries
 
include
 
EUR
 
7
 
million
 
(4)
 
in
 
expenses
 
arising
 
from
 
share
 
-based
 
long-term
 
incentive
schemes.
 
At
 
the
 
end
 
of
 
2020,
 
Wärtsilä
 
had
 
three
 
active
 
long-term
 
incentive
 
schemes.
 
These
 
schemes
 
are
 
tied
to
 
the
 
price
 
development
 
of
 
the
 
company’s
 
share
 
during
 
a
 
pre-determined
 
timeframe,
 
and
 
an
 
upper
 
limit
 
is
 
set
for
 
the
 
payable
 
incentive.
 
When
 
an
 
incentive
 
scheme
 
ends
 
and
 
the
 
employment
 
requirement
 
is
 
fulfilled,
 
the
incentive
 
is
 
settled
 
in
 
cash
 
(2018-2020
 
incentive
 
scheme)
 
or
 
in
 
company
 
shares
 
(2019-
 
2021
 
and
 
2020-2022
incentive
 
schemes).
 
The
 
Board
 
of
 
Management
 
members
 
shall
 
acquire
 
Wärtsilä
 
shares
 
with
 
50%
 
of
 
the
 
net
bonuses
 
received,
 
until
 
the
 
share
 
ownership
 
corresponding
 
to
 
the
 
individuals'
 
annual
 
gross
 
base
 
salary
 
level
has
 
been
 
achieved.
 
The
 
payment
 
for
 
incentive
 
schemes
 
is
 
based
 
on
 
the
 
share
 
price
 
development
 
during
 
a
 
three
 
-year
 
period.
 
The
2018-2020
 
incentive
 
scheme
 
comprises
 
3,150,000
 
rights,
 
the
 
2019-2021
 
incentive
 
scheme
 
4,585,000
 
rights
and
 
the
 
2020
 
-2022
 
incentive
 
scheme
 
8,400,000
 
rights.
 
For
 
the
 
incentive
 
scheme
 
2018-
 
2020
 
the
 
share
 
price
basis
 
is
 
EUR
 
22.58,
 
for
 
the
 
incentive
 
scheme
 
2019-
 
2021
 
EUR
 
16.76,
 
and
 
for
 
the
 
incentive
 
scheme
 
2020-2022
EUR
 
11.10.
 
The
 
incentive
 
schemes
 
take
 
into
 
account
 
100%
 
of
 
dividends
 
paid,
 
and
 
the
 
paid
 
bonus
 
cannot
exceed
 
EUR
 
8.47
 
per
 
incentive
 
right
 
in
 
the
 
2018-2020
 
scheme,
 
EUR
 
6.56
 
in
 
the
 
2019-2021
 
scheme
 
,
 
or
 
EUR
4.31
 
in
 
the
 
2020
 
-2022
 
scheme.
 
The
 
incentive
 
rights,
 
which
 
are
 
settled
 
in
 
cash,
 
are
 
valued
 
and
 
recognised
 
at
 
fair
 
value
 
on
 
the
 
balance
 
sheet
date
 
taking
 
into
 
account
 
the
 
proportion
 
of
 
vesting
 
period
 
passed.
 
The
 
incentive
 
rights,
 
which
 
are
 
settled
 
in
company
 
shares,
 
are
 
valued
 
at
 
fair
 
value
 
on
 
the
 
grant
 
date
 
of
 
the
 
scheme
 
and
 
are
 
expensed
 
evenly
 
during
 
the
vesting
 
period.
 
The
 
fair
 
value
 
determined
 
for
 
the
 
incentive
 
right
 
in
 
2019
 
-2021
 
scheme
 
is
 
EUR
 
2.69
 
and
 
in
 
2020-
2022
 
scheme
 
EUR
 
1.34
 
.
 
2020
2019
Personnel
 
on
 
average
18,307
19,110
Personnel
 
at
 
the
 
end
 
of
 
the
 
financial
 
period
17,792
18,795
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
 
 
 
2.6.
 
INCOME
 
TAXES
Accounting
 
principles
The
 
statement
 
of
 
income
 
includes
 
taxes
 
payable
 
based
 
on
 
the
 
Group’s
 
consolidated
 
taxable
 
income
 
for
 
the
financial
 
period
 
in
 
accordance
 
with
 
local
 
tax
 
regulations,
 
tax
 
adjustments
 
for
 
previous
 
financial
 
periods,
 
and
changes
 
in
 
deferred
 
taxes.
 
Tax
 
effects
 
related
 
to
 
transactions
 
recognised
 
through
 
the
 
statement
 
of
 
income
and
 
other
 
events
 
are
 
recognised
 
in
 
the
 
statement
 
of
 
income.
 
Tax
 
effects
 
related
 
to
 
transactions
 
or
 
other
events
 
to
 
be
 
presented
 
as
 
components
 
of
 
other
 
comprehensive
 
income
 
or
 
directly
 
in
 
equity
 
are
 
also
recognised,
 
respectively,
 
in
 
other
 
comprehensive
 
income
 
or
 
directly
 
in
 
equity.
The
 
current
 
income
 
tax
 
charge
 
is
 
calculated
 
according
 
to
 
tax
 
laws
 
enacted,
 
or
 
substantively
 
enacted,
 
on
 
the
balance
 
sheet
 
date
 
in
 
the
 
countries
 
where
 
the
 
company
 
and
 
its
 
subsidiaries
 
operate
 
and
 
generate
 
taxable
income.
Accounting
 
estimates
 
and
 
judgements
The
 
Group
 
is
 
subject
 
to
 
income
 
taxes
 
in
 
several
 
jurisdictions
 
and
 
the
 
computation
 
of
 
the
 
Group´s
 
income
 
tax
expense
 
and
 
income
 
tax
 
liabilities
 
require
 
judgement
 
and
 
estimation.
 
Income
 
tax
 
positions
 
are
 
regularly
evaluated
 
by
 
the
 
management
 
to
 
identify
 
situations
 
when
 
there
 
might
 
be
 
uncertainty
 
due
 
to
 
tax
 
regulation
being
 
subject
 
to
 
interpretation.
 
Provi
 
sions
 
for
 
these
 
uncertain
 
tax
 
positions
 
are
 
recognised
 
when
 
it
 
is
considered
 
more
 
likely
 
than
 
not
 
that
 
the
 
positions
 
will
 
be
 
challenged
 
by
 
the
 
tax
 
authorities.
 
The
 
provision
recognised
 
is
 
based
 
on
 
the
 
estimation
 
of
 
the
 
amount
 
of
 
the
 
final
 
taxes
 
to
 
be
 
paid
 
to
 
the
 
tax
 
authorities.
 
MEUR
2020
2019
Income
 
taxes
for
 
the
 
financial
 
period
-107
-130
for
 
prior
 
financial
 
periods
8
-8
Change
 
in
 
deferred
 
tax
origination
 
and
 
reversal
 
of
 
temporary
 
differences
40
43
changes
 
in
 
tax
 
rates
-2
Total
-58
-97
Reconciliation
 
of
 
effective
 
tax
 
rate:
Profit
 
before
 
taxes
191
315
Tax
 
calculated
 
at
 
the
 
domestic
 
corporate
 
tax
 
rate
 
20.0%
-38
-63
Effect
 
of
 
changed
 
tax
 
rates
-2
Effect
 
of
 
different
 
tax
 
rates
 
in
 
foreign
 
subsidiaries
15
15
Effect
 
of
 
income
 
not
 
subject
 
to
 
tax
 
and
 
non-deductible
 
expenses
-7
-1
Effect
 
of
 
share
 
of
 
result
 
of
 
associates
 
and
 
joint
 
ventures
1
-2
Utilisation
 
of
 
previously
 
unrecognised
 
tax
 
losses
 
carried
 
forward
2
1
Unrecognised
 
taxes
 
on
 
losses
 
carried
 
forward
-25
-13
Other
 
taxes*
-14
-10
Other
 
temporary
 
differences
-13
Income
 
taxes
 
for
 
prior
 
financial
 
periods
8
-8
Tax
 
charge
 
in
 
the
 
consolidated
 
statement
 
of
 
income
-58
-97
Effective
 
tax
 
rate
 
(%)
30.3
30.7
 
*
 
Other
 
taxes
 
consist
 
mainly
 
of
 
withholding
 
taxes
 
not
 
utilised
 
and
 
taxes
 
not
 
directly
 
based
 
on
 
taxable
 
income.
 
Income
 
taxes
 
related
 
to
 
other
 
comprehensive
 
income
 
are
 
presented
 
in
 
Consolidated
 
statement
 
of
comprehensive
 
income.
 
Changes
 
in
 
deferred
 
tax
 
assets
 
and
 
liabilities
 
are
 
presented
 
in
 
Note
 
4.6.
 
Deferred
taxes.
 
In
 
some
 
countries
 
Wärtsilä
 
is
 
subject
 
to
 
tax
 
audits,
 
which
 
can
 
result
 
in
 
tax
 
reassessment
 
decisions
 
and
obligations
 
to
 
pay
 
additional
 
taxes
 
and
 
related
 
payments.
 
2.7.
 
EARNINGS
 
PER
 
SHARE
Earnings
 
per
 
share
 
is
 
calculated
 
by
 
dividing
 
the
 
profit
 
for
 
the
 
financial
 
period
 
attributable
 
to
 
equity
 
holders
 
of
the
 
parent
 
company
 
by
 
the
 
adjusted
 
average
 
number
 
of
 
shares
 
outstanding.
 
During
 
the
 
financial
 
periods
 
there
were
 
no
 
programmes
 
with
 
dilutive
 
effect.
 
MEUR
2020
2019
Profit
 
for
 
the
 
financial
 
period
 
attributable
 
to
 
equity
 
holders
 
of
 
the
 
parent
company
134
217
Thousands
 
of
 
shares
adjusted
 
average
 
number
 
of
 
shares
 
outstanding*
591,723
591,723
Earnings
 
per
 
share
 
attributable
 
to
 
equity
 
holders
 
of
 
the
 
parent
 
company
(basic
 
and
 
diluted):
Earnings
 
per
 
share
 
(EPS),
 
basic
 
and
 
diluted,
 
EUR
0.23
0.37
 
*
 
Additional
 
information
 
on
 
the
 
number
 
of
 
shares
 
is
 
presented
 
in
 
Note
 
5.5.
 
Equity.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
 
 
 
3.
 
INTANGIBLE
 
AND
 
TANGIBLE
 
ASSETS
3.1.
 
GOODWILL
Accounting
 
principles
Goodwill
 
is
 
the
 
difference
 
between
 
the
 
aggregate
 
of
 
the
 
acquisition
 
-date
 
fair
 
value
 
of
 
the
 
consideration
transferred,
 
and
 
the
 
acquirer’s
 
share
 
of
 
the
 
company’s
 
net
 
identifiable
 
assets
 
and
 
liabilities
 
measured
 
at
 
fair
value
 
on
 
the
 
acquisition
 
date.
 
The
 
consideration
 
is
 
measured
 
at
 
fair
 
value,
 
including
 
also
 
the
 
acquirer’s
previously
 
held
 
equity
 
interest.
Impairment
 
of
 
goodwill
The
 
carrying
 
amount
 
of
 
goodwill
 
allocated
 
to
 
cash
 
generating
 
units
 
(CGU)
 
is
 
reviewed
 
annually
 
for
 
signs
 
of
possible
 
impairment
 
,
 
or
 
more
 
frequently
 
should
 
any
 
indication
 
of
 
impairment
 
arise.
 
If
 
any
 
such
 
indication
exists,
 
the
 
recoverable
 
amount
 
of
 
the
 
goodwill
 
is
 
estimated.
 
In
 
order
 
to
 
define
 
a
 
possible
 
impairment,
 
the
Group’s
 
assets
 
are
 
divided
 
into
 
the
 
smallest
 
possible
 
cash
 
generating
 
units,
 
which
 
are
 
mainly
 
independent
of
 
other
 
units
 
,
 
and
 
the
 
cash
 
flows
 
of
 
which
 
are
 
separately
 
identifiable
 
and
 
to
 
a
 
large
 
extent
 
independent
 
of
the
 
cash
 
flows
 
of
 
other
 
similar
 
units.
An
 
impairment
 
loss
 
is
 
recognised
 
when
 
the
 
carrying
 
amount
 
of
 
an
 
asset
 
is
 
greater
 
than
 
its
 
recoverable
amount.
 
The
 
recoverable
 
amount
 
is
 
the
 
higher
 
of
 
an
 
asset’s
 
fair
 
value
 
less
 
costs
 
to
 
sell
 
and
 
its
 
value
 
in
 
use.
The
 
value
 
in
 
use
 
for
 
goodwill
 
is
 
based
 
on
 
the
 
expected
 
discounted
 
future
 
net
 
cash
 
flows
 
resulting
 
from
 
the
asset
 
or
 
cash
 
generating
 
unit.
A
 
pre-tax
 
rate,
 
which
 
reflects
 
the
 
markets’
 
position
 
on
 
the
 
time
 
value
 
of
 
money
 
and
 
asset
 
-specific
 
risks,
 
is
used
 
as
 
the
 
discount
 
rate.
An
 
impairment
 
loss
 
is
 
recognised
 
immediately
 
as
 
depreciation,
 
amortisation
 
and
 
impairment
 
in
 
the
statement
 
of
 
income.
 
An
 
impairment
 
loss
 
recognised
 
for
 
goodwill
 
is
 
not
 
reversed
 
under
 
any
 
circumstances.
Accounting
 
estimates
 
and
 
judgement
 
s
The
 
recoverable
 
amounts
 
of
 
goodwill
 
are
 
determined
 
for
 
all
 
cash
 
generating
 
units
 
annually,
 
or
 
more
 
often
 
if
there
 
is
 
an
 
indication
 
of
 
an
 
impairment,
 
where
 
its
 
value
 
in
 
use
 
is
 
determined.
 
The
 
value
 
in
 
use
 
is
 
determined
using
 
estimates
 
of
 
future
 
market
 
development,
 
such
 
as
 
growth
 
and
 
profitability,
 
as
 
well
 
as
 
other
 
significant
factors.
 
The
 
most
 
important
 
factors
 
underlying
 
such
 
estimates
 
are
 
the
 
net
 
sales
 
growth
 
in
 
the
 
market
 
area,
the
 
operating
 
margin,
 
the
 
useful
 
life
 
of
 
the
 
assets,
 
future
 
investment
 
needs,
 
and
 
the
 
discount
 
rate.
 
Changes
in
 
these
 
ass
 
umptions
 
can
 
significantly
 
affect
 
the
 
expected
 
future
 
cash
 
flows.
Significant
 
judgement
 
has
 
been
 
used
 
when
 
Wärtsilä
 
management
 
has
 
evaluated
 
indications
 
of
 
impairment.
The
 
recoverable
 
amounts
 
of
 
the
 
operating
 
segments
 
have
 
been
 
evaluated
 
against
 
the
 
carrying
 
values.
 
The
full
 
financial
 
impact
 
of
 
the
 
coronavirus
 
(C
 
OVID-19)
 
outbreak
 
cannot
 
be
 
quantified
 
at
 
this
 
time,
 
as
 
it
 
will
depend
 
on
 
the
 
duration
 
and
 
severity
 
of
 
the
 
virus
 
in
 
different
 
geographies,
 
which
 
largely
 
depends
 
on
 
the
measures
 
taken
 
to
 
contain
 
the
 
virus,
 
which
 
in
 
turn
 
will
 
determine
 
the
 
pace
 
of
 
recovery
 
in
 
these
 
geographies.
Therefore,
 
estimates
 
for
 
market
 
development,
 
growth,
 
and
 
other
 
significant
 
factors
 
is
 
challenging
 
in
 
the
current
 
situation.
 
The
 
assumptions
 
used
 
in
 
the
 
evaluation
 
of
 
goodwill
 
recoverability
 
are
 
based
 
on
management’s
 
best
 
estimates
 
under
 
the
 
current
 
circumstances.
 
Goodwill
 
2020
 
MEUR
2020
Wärtsilä
 
Group
Wärtsilä
 
on
 
1
 
January
1,380
Changes
 
in
 
exchange
 
rates
-41
Wärtsilä
 
on
 
30
 
June
1,339
Changes
 
in
 
exchange
 
rates
-3
Disposals
 
and
 
impairments
-4
Reclassification
 
to
 
assets
 
held
 
for
 
sale
-7
Wärtsilä
 
on
 
31
 
December
1,325
 
Disposals
 
and
 
impairments
 
of
 
goodwill
 
relate
 
to
 
divested
 
businesses
 
in
 
Portfolio
 
Business.
 
These
 
businesses
were
 
first
 
classified
 
as
 
assets
 
held
 
for
 
sale
 
and
 
later
 
divested
 
.
 
The
 
total
 
impact
 
of
 
these
 
divestments
 
on
 
the
profit
 
for
 
the
 
financial
 
period
 
is
 
presented
 
in
 
Note
 
6.2.
 
Disposals.
 
 
All
 
businesses
 
currently
 
presented
 
as
 
assets
 
held
 
for
 
sale
 
belong
 
to
 
Portfolio
 
Business.
 
The
 
total
 
impact
 
on
 
the
profit
 
for
 
the
 
financial
 
period
 
is
 
presented
 
in
 
Note
 
6.3.
 
Assets
 
held
 
for
 
sale.
Goodwill
 
allocation
 
Goodwill
 
arising
 
from
 
business
 
acquisitions
 
has
 
been
 
allocated
 
to
 
the
 
new
 
operating
 
segments
 
and
 
other
business
 
activities,
 
which
 
are
 
also
 
the
 
Group’s
 
CGUs
 
in
 
impairment
 
testing
 
of
 
goodwill.
 
From
 
1
 
July
 
2020
onwards,
 
these
 
are
 
Marine
 
Power,
 
Marine
 
Systems,
 
Voyage,
 
Energy,
 
and
 
Portfolio
 
Business.
 
The
 
reallocation
 
has
 
been
 
performed
 
using
 
a
 
relative
 
value
 
approach
 
with
 
minor
 
exceptions.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
 
 
 
MEUR
1.7.2020
31.12.2020
Marine
 
Power
535
534
Marine
 
Systems
165
165
Voyage
98
98
Energy
502
502
Portfolio
 
Business
39
26
Total
1,339
1,325
 
Intermediate
 
impairment
 
testing
Due
 
to
 
the
 
COVID
 
-
 
19
 
outbreak
 
and
 
the
 
new
 
organisational
 
structure,
 
Wärtsilä
 
performed
 
an
 
intermediate
impairment
 
testing
 
of
 
goodwill
 
during
 
the
 
second
 
quarter
 
of
 
2020.
 
As
 
a
 
result
 
of
 
the
 
impairment
 
test,
 
no
impairment
 
loss
 
for
 
the
 
CGUs
 
was
 
recognised
 
for
 
the
 
reporting
 
period
 
ended
 
30
 
June
 
2020.
 
Annual
 
impairme
 
nt
 
testing
 
of
 
goodwill
The
 
Group
 
performed
 
its
 
annual
 
impairment
 
testing
 
of
 
goodwill
 
during
 
the
 
third
 
quarter
 
of
 
the
 
year.
 
Wärtsilä
compared
 
the
 
recoverable
 
amount
 
of
 
each
 
business
 
against
 
its
 
carrying
 
amount
 
to
 
define
 
whether
 
there
 
were
any
 
indications
 
of
 
goodwill
 
impairment.
 
For
 
Marine
 
Power,
 
Marine
 
Systems,
 
Voyage,
 
and
 
Energy,
 
the
 
recoverable
 
amounts
 
were
 
defined
 
based
 
on
 
the
discounted
 
cash
 
flow
 
method,
 
derived
 
from
 
the
 
order
 
book
 
and
 
four
 
-year
 
cash
 
flow
 
projections.
 
The
 
estimated
cash
 
flows
 
of
 
the
 
CGUs
 
were
 
based
 
on
 
the
 
utilisation
 
of
 
existing
 
property,
 
plant,
 
and
 
equipment
 
in
 
their
 
current
condition
 
with
 
normal
 
maintenance
 
capital
 
expenditure,
 
excluding
 
any
 
potential
 
future
 
acquisitions.
 
Cash
 
flows
beyond
 
the
 
four
 
-year
 
period
 
were
 
calcul
 
ated
 
using
 
the
 
terminal
 
value
 
method.
 
For
 
the
 
Portfolio
 
Business
 
units,
 
which
 
were
 
classified
 
as
 
assets
 
held
 
for
 
sale,
 
the
 
recoverable
 
amounts
 
were
defined
 
based
 
on
 
estimations
 
of
 
the
 
selling
 
price
 
on
 
cash
 
-free,
 
debt
 
-free
 
basis.
 
For
 
the
 
other
 
business
 
units,
the
 
recoverable
 
amounts
 
were
 
defined
 
based
 
on
 
either
 
the
 
discounted
 
cash
 
flow
 
method
 
or
 
estimations
 
of
 
the
selling
 
price
 
on
 
cash
 
-free,
 
debt
 
-free
 
basis,
 
whichever
 
was
 
higher
 
at
 
the
 
time.
 
The
 
terminal
 
growth
 
rate
 
used
 
in
 
projections
 
is
 
based
 
on
 
manageme
 
nt’s
 
assessment
 
on
 
conservative
 
long-term
growth.
 
The
 
terminal
 
growth
 
rate
 
used
 
in
 
the
 
calculation
 
were:
 
Terminal
 
growth
 
rate,
 
%
2020
Marine
 
Power
1.5
Marine
 
Systems
1.5
Voyage
2.5
Energy
2.0
Portfolio
 
Business
0.0
 
The
 
key
 
driver
 
for
 
the
 
valuation
 
is
 
growth
 
in
 
the
 
global
 
economy,
 
and
 
in
 
particular,
 
the
 
development
 
of
 
the
global
 
power
 
market,
 
the
 
global
 
shipbuilding
 
industry,
 
and
 
the
 
demand
 
for
 
any
 
related
 
services.
 
The
 
projected
development
 
of
 
total
 
costs
 
in
 
the
 
market
 
affects
 
the
 
profitability,
 
whereas
 
no
 
single
 
cost
 
item
 
is
 
considered
 
to
have
 
a
 
material
 
impact.
 
The
 
valuation
 
driver
 
for
 
new
 
equipment
 
sales
 
is
 
growth
 
in
 
the
 
global
 
economy,
whereas
 
for
 
after
 
sales
 
the
 
drivers
 
are
 
also
 
the
 
demand
 
for
 
related
 
services
 
and
 
the
 
projected
 
development
 
in
labour
 
costs.
 
The
 
applied
 
discount
 
rates
 
are
 
the
 
weighted
 
average
 
pre-tax
 
cost
 
of
 
capital
 
(WACC)
 
for
 
each
 
CGU
 
as
 
defined
by
 
Wärtsilä.
 
The
 
components
 
of
 
the
 
WACC
 
rates
 
are
 
risk
 
-free
 
rate,
 
market
 
risk
 
premium,
 
industry
 
specific
 
beta,
cost
 
of
 
debt
 
and
 
debt
 
equity
 
ratio.
 
Wärtsilä
 
has
 
used
 
the
 
following
 
WACC
 
rates
 
for
 
each
 
CGU:
 
WACC
 
rate,
 
%
2020
Marine
 
Power
9.2
Marine
 
Systems
9.5
Voyage
9.2
Energy
9.6
Portfolio
 
Business
10.1
 
As
 
a
 
result
 
of
 
the
 
impairment
 
test,
 
no
 
impairment
 
loss
 
for
 
the
 
CGUs
 
was
 
recognised
 
for
 
the
 
financial
 
period
ended
 
on
 
30
 
September
 
2020.
 
The
 
recoverable
 
amounts
 
of
 
Marine
 
Power,
 
Marine
 
Systems,
 
and
 
Energy
 
CGUs
exceeded
 
their
 
respective
 
carrying
 
values
 
subst
 
antially.
 
Also,
 
the
 
defined
 
recoverable
 
amount
 
of
 
Voyage
 
CGU
 
exceeded
 
the
 
carrying
 
amount
 
of
 
the
 
unit.
 
The
 
key
assumption
 
for
 
Voyage
 
CGU
 
is
 
that
 
Voyage
 
is
 
estimated
 
to
 
break
 
even
 
within
 
the
 
next
 
few
 
years
 
on
 
the
EBITDA
 
level
 
and
 
that
 
its
 
growth
 
rate
 
will
 
exceed
 
the
 
Group
 
average.
 
Any
 
future
 
negative
 
changes
 
in
 
these
assumptions
 
would
 
have
 
an
 
adverse
 
impact
 
on
 
the
 
valuation
 
of
 
the
 
business.
 
According
 
to
 
the
 
measuring
 
requirements
 
related
 
to
 
assets
 
held
 
for
 
sale,
 
Wärtsilä
 
has
 
written
 
down
 
certain
assets
 
in
 
Portfolio
 
Business
 
in
 
2020.
 
Part
 
of
 
these
 
write-downs
 
related
 
to
 
goodwill.
 
However,
 
based
 
on
 
the
testing
 
conducted
 
in
 
the
 
annual
 
impairment
 
test,
 
there
 
was
 
no
 
additional
 
impairment
 
noted
 
for
 
Portfolio
Business.
 
There
 
are
 
no
 
recent
 
indications
 
of
 
impairmen
 
t
 
of
 
goodwill
 
after
 
the
 
annual
 
impairment
 
testing
 
.
 
Sensitivity
 
analysis
The
 
management
 
has
 
assessed
 
that
 
no
 
reasonable
 
possible
 
changes
 
in
 
the
 
key
 
assumptions
 
would
 
cause
 
the
carrying
 
amount
 
of
 
any
 
CGU
 
to
 
exceed
 
its
 
recoverable
 
amount.
 
A
 
s
 
ensitivity
 
analysis
 
has
 
been
 
carried
 
out
 
for
the
 
valuation
 
of
 
the
 
recoverable
 
amount
 
for
 
each
 
CGU
 
by
 
changing
 
the
 
assumptions
 
used
 
in
 
the
 
calculation.
 
A
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
 
 
change
 
in
 
an
 
assumption
 
that
 
would
 
cause
 
the
 
recoverable
 
amount
 
to
 
equal
 
the
 
carrying
 
amount
 
is
 
presented
in
 
the
 
table
 
below
 
separately
 
for
 
each
 
CGU.
 
Change
Marine
 
Power
Pre-tax
 
discount
 
rate
increase
 
more
 
than
 
8
 
percentage
 
points
Terminal
 
growth
 
rate
decrease
 
more
 
than
 
8
 
percentage
 
points
Profitability
decrease
 
more
 
than
 
51
 
percentage
Marine
 
Systems
Pre-tax
 
discount
 
rate
increase
 
more
 
than
 
25
 
percentage
 
points
Terminal
 
growth
 
rate
decrease
 
more
 
than
 
34
 
percentage
 
points
Profitability
decrease
 
more
 
than
 
72
 
percentage
Voyage
Pre-tax
 
discount
 
rate
increase
 
more
 
than
 
4
 
percentage
 
points
Terminal
 
growth
 
rate
decrease
 
more
 
than
 
3
 
percentage
 
points
Profitability
decrease
 
more
 
than
 
37
 
percentage
Energy
Pre-tax
 
discount
 
rate
increase
 
more
 
than
 
12
 
percentage
 
points
Terminal
 
growth
 
rate
decrease
 
more
 
than
 
13
 
percentage
 
points
Profitability
decrease
 
more
 
than
 
61
 
percentage
 
For
 
Portfolio
 
Business,
 
the
 
recoverable
 
amount
 
of
 
the
 
CGU
 
was
 
mainly
 
defined
 
based
 
on
 
estimations
 
of
 
the
selling
 
price
 
on
 
a
 
cash
 
-free
 
debt
 
-free
 
basis
 
for
 
each
 
individual
 
business
 
unit.
 
Thus,
 
the
 
change
 
in
 
the
 
pre-tax
discount
 
rate
 
and
 
in
 
the
 
terminal
 
growth
 
rate
 
only
 
has
 
minimal
 
impact
 
on
 
the
 
valuation
 
of
 
the
 
CGU.
 
The
recoverable
 
amount
 
of
 
the
 
CGU
 
would
 
need
 
to
 
decrease
 
by
 
9
 
percentage
 
to
 
equal
 
the
 
carrying
 
amount
 
of
 
the
CGU.
 
In
 
management’s
 
opinion,
 
the
 
changes
 
in
 
the
 
basic
 
assumptions
 
shall
 
not
 
be
 
seen
 
as
 
an
 
indication
 
that
 
these
factors
 
are
 
likely
 
to
 
materialise.
 
The
 
sensitivity
 
analyses
 
are
 
hypothetical
 
and
 
should
 
therefore
 
be
 
treated
 
with
caution.
 
Goodwill
 
2019
 
MEUR
2019
Wärtsilä
 
Group
Wärtsilä
 
on
 
1
 
January
1,355
Acquisitions
-1
Changes
 
in
 
exchange
 
rates
26
Total
1,380
 
Goodwill
 
allocation
Goodwill
 
arising
 
from
 
business
 
acquisitions
 
is
 
allocated
 
to
 
the
 
Group
 
cash
 
generating
 
units
 
(CGU)
 
that
 
are
 
the
Group´s
 
operating
 
segments
 
Wärtsilä
 
Marine
 
Business
 
and
 
Wärtsilä
 
Energy
 
Business.
 
As
 
of
 
1
 
January
 
2019,
the
 
goodwill
 
formerly
 
allocated
 
to
 
the
 
Group
 
CGU
 
has
 
been
 
allocated
 
to
 
the
 
respective
 
CGUs
 
based
 
on
 
the
 
fair
value
 
of
 
the
 
operating
 
segments.
 
The
 
operating
 
segments
 
represent
 
the
 
lowest
 
level
 
within
 
the
 
Group
 
at
 
which
the
 
goodwill
 
is
 
monitored.
 
The
 
companies
 
acquired
 
during
 
the
 
financial
 
period
 
are
 
integrated
 
within
 
the
respective
 
CGU
 
at
 
the
 
acquisition
 
date.
 
The
 
goodwill
 
per
 
CGU
 
is
 
presented
 
in
 
the
 
table
 
below.
 
Goodwill
 
per
 
cash
 
generating
 
unit
 
MEUR
2019
Wärtsilä
 
Marine
 
Business
847
Wärtsilä
 
Energy
 
Business
533
Total
1,380
 
Impairment
 
testing
 
of
 
goodwill
The
 
Group
 
performs
 
its
 
annual
 
impairment
 
testing
 
of
 
goodwill
 
on
 
30
 
September.
 
Impairment
 
of
 
goodwill
 
is
 
also
carried
 
out
 
when
 
changes
 
in
 
circumstances
 
indicate
 
that
 
the
 
carrying
 
amount
 
may
 
not
 
be
 
recoverable.
 
The
 
recoverable
 
amounts
 
from
 
the
 
CGUs
 
are
 
determined
 
based
 
on
 
value
 
-
 
in-use
 
calculations.
 
The
 
calculations
are
 
made
 
on
 
a
 
discounted
 
cash
 
flow
 
method
 
basis,
 
derived
 
from
 
the
 
order
 
book
 
and
 
five
 
-year
 
cash
 
flow
projections
 
from
 
strategic
 
plans
 
approved
 
by
 
management.
 
The
 
estimated
 
cash
 
flows
 
of
 
the
 
CGUs
 
are
 
based
on
 
utilisation
 
of
 
the
 
existing
 
property,
 
plant
 
and
 
equipment
 
in
 
their
 
current
 
condition
 
with
 
normal
 
maintenance
capital
 
expenditure,
 
excluding
 
any
 
potential
 
future
 
acquisitions.
 
Cash
 
flows
 
beyond
 
the
 
five
 
-year
 
period
 
are
calculated
 
using
 
the
 
terminal
 
value
 
method.
 
The
 
terminal
 
growth
 
rate
 
used
 
in
 
projections
 
is
 
based
 
on
management’s
 
assessment
 
on
 
conservative
 
long-term
 
growth.
 
The
 
terminal
 
growth
 
rate
 
used
 
is
 
2%.
 
The
 
key
 
driver
 
for
 
the
 
valuation
 
is
 
growth
 
in
 
the
 
global
 
economy
 
and,
 
in
 
particular,
 
the
 
development
 
of
 
the
global
 
power
 
market,
 
the
 
global
 
shipbuilding
 
industry,
 
and
 
the
 
demand
 
for
 
related
 
services.
 
The
 
projected
 
 
 
 
 
 
 
 
 
 
 
 
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
 
 
development
 
of
 
total
 
costs
 
in
 
the
 
market
 
affects
 
the
 
profitability,
 
whereas
 
no
 
single
 
cost
 
item
 
is
 
considered
 
to
have
 
a
 
material
 
impact.
 
The
 
valuation
 
driver
 
for
 
the
 
new
 
equipment
 
sales
 
is
 
growth
 
in
 
the
 
global
 
economy,
whereas
 
for
 
after
 
sales
 
the
 
drivers
 
are
 
also
 
the
 
demand
 
for
 
related
 
services
 
and
 
the
 
projected
 
development
 
in
labour
 
costs.
 
The
 
appl
 
ied
 
discount
 
rates
 
are
 
the
 
weighted
 
average
 
pre-tax
 
cost
 
of
 
capital
 
(WACC)
 
for
 
each
 
CGU
 
as
 
defined
by
 
Wärtsilä.
 
The
 
components
 
of
 
the
 
WACC
 
rates
 
are
 
the
 
risk
 
-free
 
rate,
 
market
 
risk
 
premium,
 
industry
 
specific
beta,
 
cost
 
of
 
debt,
 
and
 
debt
 
equity
 
ratio.
 
Wärtsilä
 
has
 
used
 
a
 
WACC
 
rate
 
of
 
9.1%
 
in
 
the
 
calculations
 
for
Wärtsilä
 
Marine
 
Business
 
CGU
 
and
 
a
 
WACC
 
rate
 
of
 
9.4%
 
for
 
Wärtsilä
 
Energy
 
Business
 
CGU.
 
As
 
a
 
result
 
of
 
the
 
impairment
 
tests,
 
no
 
impairment
 
loss
 
for
 
the
 
CGUs
 
was
 
recognised
 
for
 
the
 
financial
 
period
ended
 
31
 
December
 
2019.
 
The
 
recoverable
 
amounts
 
of
 
both
 
CGUs
 
exceeded
 
their
 
respective
 
carrying
 
value
substantially.
 
Sensitivity
 
analysis
The
 
management
 
has
 
assessed
 
that
 
no
 
reasonable
 
possible
 
changes
 
in
 
the
 
key
 
assumptions
 
would
 
cause
 
the
carrying
 
amount
 
of
 
either
 
CGU
 
to
 
exceed
 
its
 
recoverable
 
amount.
 
A
 
sensitivity
 
analysis
 
has
 
been
 
carried
 
out
for
 
the
 
valuation
 
of
 
the
 
recoverable
 
amount
 
for
 
each
 
CGU
 
by
 
changing
 
the
 
assumptions
 
used
 
in
 
the
calculations.
 
A
 
change
 
in
 
an
 
assumption
 
that
 
would
 
cause
 
the
 
recoverable
 
amount
 
to
 
equal
 
the
 
carrying
amount
 
is
 
presented
 
in
 
the
 
table
 
below
 
separately
 
for
 
each
 
CGU.
 
Change
Wärtsilä
 
Marine
 
Business
Pre-tax
 
discount
 
rate
increase
 
more
 
than
 
15
 
percentage
 
points
Terminal
 
growth
 
rate
decrease
 
more
 
than
 
35
 
percentage
 
points
Profitability
decrease
 
more
 
than
 
66
 
percentage
Wärtsilä
 
Energy
 
Business
Pre-tax
 
discount
 
rate
increase
 
more
 
than
 
13
 
percentage
 
points
Terminal
 
growth
 
rate
decrease
 
more
 
than
 
28
 
percentage
 
points
Profitability
decrease
 
more
 
than
 
64
 
percentage
 
In
 
management’s
 
opinion,
 
the
 
changes
 
in
 
the
 
basic
 
assumptions
 
should
 
not
 
be
 
seen
 
as
 
an
 
indication
 
that
 
these
factors
 
are
 
likely
 
to
 
materialise.
 
The
 
sensitivity
 
analyses
 
are
 
hypothetical
 
and
 
should
 
therefore
 
be
 
treated
 
with
caution.
 
3.
 
2.
 
OTHER
 
INTANGIBLE
 
ASSETS
Accounting
 
principles
Research
 
and
 
development
 
costs
Research
 
costs
 
are
 
expensed
 
in
 
the
 
reporting
 
period
 
during
 
which
 
they
 
occur.
 
Development
 
costs
 
are
capitalised
 
when
 
it
 
is
 
probable
 
that
 
the
 
development
 
project
 
will
 
generate
 
future
 
economic
 
benefits
 
for
 
the
Group
 
and
 
when
 
the
 
related
 
criteria,
 
including
 
commercial
 
and
 
technological
 
feasibility,
 
have
 
been
 
met.
These
 
projects
 
involve
 
the
 
development
 
of
 
new
 
or
 
significantly
 
improved
 
products
 
or
 
production
 
processes.
Earlier
 
expensed
 
development
 
costs
 
are
 
not
 
capitalised.
 
Capitalised
 
development
 
costs
 
are
 
measured
 
at
 
cost
 
less
 
accumulated
 
amortisations
 
and
 
impairment.
Capitalised
 
development
 
costs
 
are
 
amortised
 
and
 
the
 
cost
 
of
 
buildings,
 
machinery,
 
and
 
facilities
 
for
development
 
depreciated
 
on
 
a
 
straight
 
-line
 
basis
 
over
 
their
 
expected
 
useful
 
lives
 
of
 
5-10
 
years.
Amortisations
 
are
 
started
 
when
 
the
 
asset
 
is
 
completed
 
and
 
can
 
be
 
taken
 
into
 
use.
 
Before
 
that,
 
the
 
asset
 
is
tested
 
annually
 
for
 
impairment.
 
Grants
 
received
 
for
 
research
 
and
 
development
 
are
 
reported
 
as
 
other
operating
 
income.
 
Grants
 
related
 
to
 
capitalised
 
development
 
costs
 
are
 
netted
 
with
 
the
 
costs
 
incurred
 
before
the
 
capitalisation.
Other
 
intangible
 
assets
Other
 
intangible
 
assets
 
are
 
recognised
 
at
 
cost
 
if
 
the
 
cost
 
is
 
reliably
 
measurable
 
and
 
the
 
future
 
economic
benefits
 
for
 
the
 
Group
 
are
 
probable.
 
Wärtsilä’s
 
other
 
intangible
 
assets
 
include
 
patents,
 
licenses,
 
software,
customer
 
relations
 
and
 
other
 
intellectual
 
property
 
rights
 
that
 
can
 
be
 
transferred
 
to
 
a
 
third
 
party.
 
These
 
are
measured
 
at
 
cost,
 
except
 
for
 
intangible
 
assets
 
identified
 
in
 
connection
 
with
 
acquisitions,
 
which
 
are
measured
 
at
 
the
 
fair
 
value
 
at
 
the
 
acquisition
 
date.
 
The
 
cost
 
of
 
intangible
 
assets
 
comprises
 
the
 
purchase
price
 
and
 
all
 
costs
 
that
 
can
 
be
 
directly
 
attributed
 
to
 
preparing
 
an
 
asset
 
for
 
its
 
intended
 
use.
Other
 
intangible
 
assets
 
are
 
amortised
 
on
 
a
 
straight
 
-line
 
basis
 
over
 
their
 
estimated
 
useful
 
lives.
 
Intangible
assets,
 
for
 
which
 
the
 
time
 
limit
 
for
 
the
 
right
 
of
 
use
 
is
 
agreed,
 
are
 
amortised
 
over
 
the
 
life
 
of
 
the
 
contract.
Intangible
 
assets
 
identified
 
in
 
connection
 
with
 
acquisitions
 
are
 
amortised
 
over
 
their
 
delivery
 
times
 
or
estimated
 
useful
 
lives.
The
 
general
 
guidelines
 
for
 
scheduled
 
amortisation
 
are:
 
Software
 
3-
 
7
 
years
 
Development
 
expenses
 
5-10
 
years
 
Other
 
intangible
 
assets
 
5-20
 
years
The
 
amortisation
 
of
 
intangible
 
assets
 
is
 
discontinued
 
when
 
an
 
item
 
is
 
classified
 
as
 
held
 
for
 
s
 
ale.
A
 
gain
 
or
 
loss
 
arising
 
from
 
the
 
sale
 
of
 
intangible
 
assets
 
is
 
recognised
 
as
 
other
 
operating
 
income
 
or
 
other
operating
 
expenses
 
in
 
the
 
statement
 
of
 
income.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
 
 
Impairment
 
of
 
assets
The
 
carrying
 
amounts
 
of
 
assets
 
are
 
reviewed
 
annually
 
for
 
signs
 
of
 
possible
 
impairment
 
or
 
more
 
frequently
should
 
any
 
indication
 
of
 
impairment
 
arise.
 
If
 
any
 
such
 
indication
 
exists,
 
the
 
recoverable
 
amount
 
of
 
the
 
asset
is
 
estimated
 
and
 
compared
 
to
 
the
 
carrying
 
amount
 
of
 
the
 
asset.
 
An
 
impairment
 
loss
 
is
 
recognised
 
when
 
the
carrying
 
amount
 
of
 
an
 
asset
 
is
 
greater
 
than
 
its
 
recoverable
 
amount.
 
The
 
recoverable
 
amount
 
is
 
the
 
higher
 
of
an
 
asset’s
 
fair
 
value
 
less
 
costs
 
to
 
sell
 
and
 
its
 
value
 
in
 
use.
An
 
impairment
 
loss
 
is
 
recognised
 
immediately
as
 
depreciation,
 
amortisation
 
and
 
impairment
in
 
the
statement
 
of
 
income.
 
In
 
connection
 
with
 
the
 
recognition
 
of
 
the
 
impairment
 
loss,
 
the
 
useful
 
life
 
of
 
the
amortisable
 
asset
 
is
 
reassessed.
 
An
 
earlier
 
impairment
 
loss
 
recognised
 
for
 
an
 
asset
 
is
 
reversed
 
if
 
the
estimates
 
used
 
to
 
determine
 
the
 
recoverable
 
amount
 
change.
 
However,
 
any
 
reversal
 
of
 
impairment
 
shall
not
 
exceed
 
the
 
asset’s
 
carrying
 
amount
 
less
 
impairment
 
loss.
Accounting
 
estimates
 
and
 
judgement
 
s
Assessing
 
the
 
probability
 
of
 
expected
 
future
 
economic
 
benefits
 
and
 
the
 
useful
 
lives
 
of
 
intangible
 
assets
require
 
management
 
judgement.
 
The
 
estimated
 
useful
 
lives
 
and
 
the
 
residual
 
values
 
are
 
reviewed
 
at
 
least
 
at
the
 
end
 
of
 
each
 
reporting
 
period,
 
and
 
if
 
they
 
differ
 
significantly
 
from
 
previous
 
estimates,
 
the
 
amortisation
periods
 
are
 
adjusted
 
accordingly.
 
Also
 
,
 
assessing
 
any
 
indication
 
of
 
impairment
 
requires
 
management
judgement.
 
2020
 
MEUR
Develop
 
-
ment
expenses
Construc
 
-
tion
 
in
progress
 
and
 
advances
paid
Other
 
intangible
 
assets
Total
 
Cost
 
on
 
1
 
January
 
2020
169
85
860
1,114
Changes
 
in
 
exchange
 
rates
0
0
-17
-18
Acquisitions
 
and
 
disposals
0
0
-1
-1
Additions
1
54
6
61
Decreases
 
and
 
other
 
changes
-2
1
-21
-22
Reclassifications
15
-17
1
0
Cost
 
on
 
31
 
December
 
2020
182
123
829
1,134
Accumulated
 
amortisation
 
and
 
impairment
 
on
 
1
 
January
2020
-104
-613
-717
Changes
 
in
 
exchange
 
rates
0
0
12
12
Accumulated
 
amortisation
 
on
 
decreases
 
and
 
other
 
changes
2
0
19
20
Amortisation
 
during
 
the
 
financial
 
period
-12
0
-43
-54
Impairments
-1
-1
-2
-4
Accumulated
 
amortisation
 
and
 
impairment
 
on
 
31
December
 
2020
-115
-1
-628
-743
Carrying
 
amount
 
on
 
31
 
December
 
2020
68
122
201
391
 
Development
 
costs
 
for
 
internally
 
generated
 
assets
 
capitalised
 
during
 
the
 
financial
 
period
 
amounted
 
to
 
EUR
 
52
million
 
(49).
 
The
 
carrying
 
amount
 
was
 
EUR
 
179
 
million
 
(135).
 
Purchase
 
price
 
allocation
 
amortisation
 
amounted
 
to
 
EUR
 
33
 
million
 
(41)
 
and
 
the
 
related
 
carrying
 
amount
 
was
EUR
 
171
 
million
 
(209).
 
2019
 
MEUR
Develop
 
-
ment
expenses
Construc
 
-
tion
 
in
progress
 
and
 
advances
paid
Other
 
intangible
 
assets
Total
 
Cost
 
on
 
1
 
January
 
2019
141
53
857
1,051
Changes
 
in
 
exchange
 
rates
11
11
Acquisitions
1
1
Additions
1
55
8
65
Decreases
 
and
 
other
 
changes
-1
-13
-14
Reclassifications
28
-24
-4
Cost
 
on
 
31
 
December
 
2019
169
85
860
1,114
Accumulated
 
amortisation
 
and
 
impairment
 
on
 
1
 
January
2019
-94
-565
-659
Changes
 
in
 
exchange
 
rates
-7
-7
Accumulated
 
amortisation
 
on
 
decreases
 
and
 
other
 
changes
11
11
Amortisation
 
during
 
the
 
financial
 
period
-11
-52
-62
Accumulated
 
amortisation
 
and
 
impairment
 
on
 
31
December
 
2019
-104
-613
-717
Carrying
 
amount
 
on
 
31
 
December
 
2019
65
85
247
397
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
 
 
 
3.3.
 
PROPERTY,
 
PLANT
 
AND
 
EQUIPMENT
Accounting
 
principles
Property,
 
plant
 
and
 
equipment
 
acquired
 
by
 
the
 
Group
 
are
 
measured
 
in
 
the
 
statement
 
of
 
financial
 
position
 
at
cost
 
less
 
accumulated
 
depreciation
 
and
 
impairment
 
losses.
 
The
 
cost
 
of
 
an
 
asset
 
includes
 
costs
 
directly
attributed
 
to
 
preparing
 
the
 
asset
 
for
 
its
 
intended
 
use.
 
Grants
 
received
 
are
 
reported
 
as
 
a
 
reduction
 
in
 
costs.
The
 
property,
 
plant
 
and
 
equipment
 
of
 
acquired
 
subsidiaries
 
are
 
measured
 
at
 
their
 
fair
 
value
 
at
 
the
acquisition
 
date.
 
The
 
borrowing
 
costs
 
that
 
are
 
directly
 
attributable
 
to
 
the
 
asset
 
acquisition,
 
construction
 
or
production,
 
and
 
to
 
the
 
completion
 
of
 
the
 
asset
 
for
 
its
 
intended
 
use
 
or
 
sale
 
requiring
 
necessarily
 
a
considerable
 
length
 
of
 
time,
 
will
 
be
 
capitalised
 
in
 
the
 
statement
 
of
 
financial
 
position
 
as
 
part
 
of
 
the
 
cost
 
of
 
the
asset.
 
Other
 
than
 
directly
 
attributable
 
borrowing,
 
costs
 
are
 
expensed
 
in
 
the
 
period
 
in
 
which
 
they
 
are
incurred.
Subsequent
 
expenditure
 
is
 
included
 
in
 
the
 
cost
 
of
 
an
 
asset
 
only
 
if
 
the
 
future
 
economic
 
benefits
 
are
 
probable
and
 
the
 
costs
 
are
 
reliably
 
measurable.
 
Expenditure
 
related
 
to
 
regular,
 
extensive
 
inspections
 
and
maintenance
 
is
 
treated
 
as
 
an
 
investment,
 
capitalised
 
and
 
depreciated
 
during
 
the
 
useful
 
life.
 
All
 
other
expenditure,
 
such
 
as
 
ordinary
 
maintenance
 
and
 
repairs,
 
is
 
recognised
 
in
 
the
 
statement
 
of
 
income
 
as
 
an
expense
 
as
 
incurred.
Depreciation
 
is
 
based
 
on
 
the
 
following
 
estimated
 
useful
 
lives:
 
Buildings
 
10-
 
40
 
years
 
Machinery
 
and
 
equipment
 
5
 
-20
 
years
 
Other
 
tangible
 
assets
 
3-10
 
years
Depreciation
 
is
 
expensed
 
on
 
a
 
straight
 
-line
 
basis
 
over
 
the
 
estimated
 
useful
 
lives
 
of
 
the
 
assets.
 
Land
 
is
 
not
depreciated,
 
as
 
its
 
useful
 
life
 
is
 
considered
 
as
 
infinite.
 
The
 
estimated
 
useful
 
lives
 
and
 
the
 
residual
 
values
 
are
reviewed
 
at
 
least
 
at
 
the
 
end
 
of
 
each
 
reporting
 
period,
 
and
 
if
 
they
 
differ
 
significantly
 
from
 
previous
 
estimates,
the
 
depreciation
 
periods
 
are
 
adjusted
 
accordingly.
 
Depreciation
 
of
 
property,
 
plant
 
and
 
equipment
 
is
discontinued
 
when
 
an
 
item
 
is
 
classified
 
as
 
held
 
for
 
sale.
A
 
gain
 
or
 
loss
 
arising
 
from
 
the
 
sale
 
of
 
property,
 
plant
 
and
 
equipment
 
is
 
recognised
 
as
 
other
 
operating
income
 
or
 
other
 
operating
 
expenses
 
in
 
the
 
statement
 
of
 
income.
Impairment
 
of
 
assets
The
 
carrying
 
amounts
 
of
 
assets
 
are
 
reviewed
 
annually
 
for
 
signs
 
of
 
possible
 
impairment
 
,
 
or
 
more
 
frequently
should
 
any
 
indication
 
of
 
impairment
 
arise.
 
If
 
any
 
such
 
indication
 
exists,
 
the
 
recoverable
 
amount
 
of
 
the
 
asset
is
 
estimated
 
and
 
compared
 
to
 
the
 
carrying
 
amount
 
of
 
the
 
asset.
 
An
 
impairment
 
loss
 
is
 
recognised
 
when
 
the
carrying
 
amount
 
of
 
an
 
asset
 
is
 
greater
 
than
 
its
 
recoverable
 
amount.
 
The
 
recoverable
 
amount
 
is
 
the
 
higher
 
of
an
 
asset’s
 
fair
 
value
 
less
 
costs
 
to
 
sell
 
and
 
its
 
value
 
in
 
use.
An
 
impairment
 
loss
 
is
 
recognised
 
immediately
 
as
depreciation,
 
amortisation
 
and
 
impairment
in
 
the
statement
 
of
 
income.
 
In
 
connection
 
with
 
the
 
recognition
 
of
 
the
 
impairment
 
loss,
 
the
 
useful
 
life
 
of
 
the
depreciable
 
asset
 
is
 
reassessed.
 
An
 
earlier
 
impairment
 
loss
 
recognised
 
for
 
an
 
asset
 
is
 
reversed
 
if
 
the
estimates
 
used
 
to
 
determine
 
the
 
recoverable
 
amount
 
change
 
.
 
However,
 
any
 
reversal
 
of
 
impairment
 
shall
not
 
exceed
 
the
 
asset’s
 
carrying
 
amount
 
less
 
impairment
 
loss
 
.
Accounting
 
estimates
 
and
 
judgement
 
s
Assessing
 
the
 
probability
 
of
 
expected
 
future
 
economic
 
benefits
 
and
 
useful
 
lives
 
of
 
property,
 
plant
 
and
equipment
 
require
 
management
 
judgement.
 
The
 
estimated
 
useful
 
lives
 
and
 
residual
 
values
 
are
 
reviewed
 
at
least
 
at
 
the
 
end
 
of
 
each
 
reporting
 
period,
 
and
 
if
 
they
 
differ
 
significantly
 
from
 
previous
 
estimates,
 
the
depreciation
 
periods
 
are
 
adjusted
 
accordingly.
 
Also
 
,
 
assessing
 
any
 
indication
 
of
 
impairment
 
requires
management
 
judgement.
 
2020
 
MEUR
Land
 
and
 
water
Build
 
-
ings
 
and
 
struc
 
-
tures
Machin
 
-
ery
 
and
 
equip
 
-
ment
Construc
 
-
tion
 
in
 
progress
 
and
 
ad-
vances
 
paid
Other
tangible
assets
Total
Cost
 
on
 
1
 
January
 
2020
30
283
798
32
25
1,167
Changes
 
in
 
exchange
 
rates
0
-7
-14
0
0
-22
Acquisitions
 
and
 
disposals
0
-1
-8
0
0
-10
Additions
0
4
26
22
2
54
Decreases
-5
-13
-35
0
0
-52
Reclassifications
0
4
16
-20
0
-1
Cost
 
on
 
31
 
December
 
2020
25
270
782
32
26
1,135
Accumulated
 
depreciation
 
and
impairment
 
on
 
1
 
January
 
2020
-1
-179
-659
0
-21
-860
Changes
 
in
 
exchange
 
rates
0
5
11
0
0
16
Accumulated
 
depreciation
 
on
decreases
 
and
 
disposals
0
11
37
0
0
49
Depreciation
 
during
 
the
 
financial
period
0
-12
-38
0
-1
-51
Impairments
0
-1
-5
0
0
-6
Accumulated
 
depreciation
 
and
impairment
 
on
 
31
 
December
2020
-1
-176
-654
0
-22
-853
Carrying
 
amount
 
on
 
31
December
 
2020
24
93
128
32
4
282
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
 
 
2019
 
MEUR
Land
 
and
 
water
Build
 
-
ings
 
and
 
struc
 
-
tures
Machin
 
-
ery
 
and
 
equip
 
-
ment
Construc
 
-
tion
 
in
 
progress
 
and
 
ad-
vances
 
paid
Other
tangible
assets
Total
Cost
 
on
 
1
 
January
 
2019
31
297
780
40
24
1,171
Transfer
 
to
 
right
 
-of
 
-use
 
assets
-1
-1
-2
Changes
 
in
 
exchange
 
rates
1
2
3
Additions
3
27
18
1
49
Decreases
-1
-18
-30
-50
Reclassifications
1
22
-25
-2
Cost
 
on
 
31
 
December
 
2019
30
283
798
32
25
1,167
Accumulated
 
depreciation
 
and
impairment
 
on
 
1
 
January
 
2019
-1
-177
-648
-21
-847
Changes
 
in
 
exchange
 
rates
-1
-1
Accumulated
 
depreciation
 
on
decreases
11
29
41
Depreciation
 
during
 
the
 
financial
period
-13
-40
-1
-54
Impairments
-1
-1
Accumulated
 
depreciation
 
and
impairment
 
on
 
31
 
December
2019
-1
-179
-659
-21
-860
Carrying
 
amount
 
on
 
31
December
 
2019
29
104
139
31
3
307
 
3.4.
 
LEASES
Accounting
 
principles
The
 
Group's
 
capitalised
 
lease
 
agreements
 
consist
 
mainly
 
of
 
office
 
premises,
 
vehicles
 
,
 
and
 
production
machinery
 
and
 
equipment.
 
The
 
average
 
lease
 
period
 
for
 
buildings
 
is
 
approximately
 
eight
 
years,
 
and
 
for
machinery
 
and
 
equipment
 
approximately
 
four
 
years.
 
The
 
Group
 
recognises
 
a
 
right-of-use
 
(ROU)
 
asset
 
and
a
 
lease
 
liability
 
at
 
the
 
commencement
 
of
 
the
 
lease.
 
Whether
 
a
 
contract
 
contains
 
a
 
lease
 
is
 
determined
based
 
on
 
whether
 
Wärtsilä
 
has
 
the
 
right
 
to
 
control
 
the
 
use
 
of
 
an
 
identified
 
asset
 
for
 
a
 
period
 
of
 
time.
At
 
the
 
commencement
 
date,
 
a
 
right
 
-of-
 
use
 
asset
 
as
 
defined
 
by
 
IFRS
 
16
 
is
 
measured
 
at
 
cost.
 
The
 
cost
 
of
 
the
right-
 
of-use
 
asset
 
shall
 
comprise
 
the
 
amount
 
of
 
the
 
initial
 
measurement
 
of
 
the
 
lease
 
liability,
 
any
 
lease
payments
 
made
 
at
 
or
 
before
 
the
 
commencement
 
date
 
(less
 
any
 
lease
 
incentives
 
received),
 
any
 
initial
 
direct
costs
 
incurred
 
by
 
the
 
lessee
 
and
 
an
 
estimate
 
of
 
costs
 
to
 
be
 
incurred
 
by
 
the
 
lessee
 
in
 
dismantling
 
and
removing
 
the
 
underlying
 
asset,
 
restoring
 
the
 
site
 
on
 
which
 
it
 
is
 
located
 
or
 
restoring
 
the
 
underlying
 
asset
 
to
the
 
condition
 
required
 
by
 
the
 
terms
 
and
 
conditions
 
of
 
the
 
lease,
 
unless
 
those
 
costs
 
are
 
incurred
 
to
 
produce
inventories.
The
 
nominal
 
lease
 
liability
 
is
 
initially
 
measured
 
at
 
the
 
present
 
value
 
of
 
the
 
lease
 
payments
 
over
 
the
 
lease
term.
 
The
 
lease
 
payments
 
include
 
fixed
 
payments,
 
amounts
 
to
 
be
 
expected
 
to
 
be
 
paid
 
under
 
residual
 
value
guarantees,
 
the
 
exercise
 
price
 
of
 
reasonably
 
certain
 
extension
 
options,
 
and
 
payments
 
of
 
penalties
 
for
terminating
 
a
 
lease
 
in
 
case
 
this
 
reflects
 
the
 
lease
 
term.
 
The
 
lease
 
payments
 
are
 
discounted
 
using
 
the
interest
 
rate
 
implicit
 
in
 
the
 
lease,
 
if
 
this
 
rate
 
can
 
be
 
readily
 
determined.
 
Otherwise
 
,
 
the
 
lessee´s
 
incremental
borrowing
 
rate
 
is
 
used.
 
The
 
incremental
 
borrowing
 
rates
 
used
 
are
 
the
 
sum
 
of
 
relevant
 
interbank
 
rates
 
and
the
 
average
 
margin
 
of
 
the
 
Group
 
loan
 
portfolio
 
,
 
and
 
are
 
currency
 
specific.
The
 
initial
 
measurement
 
of
 
the
 
lease
 
payments
 
does
 
not
 
include
 
possible
 
variable
 
elements.
 
Variable
 
lease
payments
 
not
 
included
 
in
 
the
 
initial
 
measurement
 
of
 
the
 
lease
 
liability
 
are
 
recognised
 
directly
 
in
 
the
statement
 
of
 
income
 
as
 
other
 
operating
 
expenses
 
.
The
 
lease
 
term
 
is
 
the
 
non-cancellable
 
period
 
of
 
the
 
lease
 
plus
 
the
 
period
 
covered
 
by
 
an
 
option
 
to
 
extend
 
or
terminate
 
if
 
the
 
lessee
 
is
 
reasonably
 
certain
 
to
 
exercise
 
the
 
option.
Subsequently,
 
the
 
right-of-
 
use
 
assets
 
are
 
measured
 
at
 
initial
 
measurement
 
less
 
accumulated
 
depreciation
and
 
impairment
 
losses.
 
The
 
right-of-use
 
assets
 
are
 
depreciated
 
and
 
interest
 
on
 
lease
 
liabilities
 
recognised
in
 
interest
 
expenses
 
in
 
the
 
statement
 
of
 
income
 
over
 
the
 
lease
 
term.
 
The
 
lease
 
liabilities
 
are
 
subsequently
measured
 
at
 
initial
 
recognition
 
less
 
occurring
 
lease
 
payments
 
that
 
are
 
allocated
 
to
 
the
 
principal.
Lease
 
payments
 
are
 
presented
 
as
 
repayments
 
of
 
liabilities
 
and
 
related
 
interest
 
expenses.
 
The
 
lease
payments
 
are
 
presented
 
in
 
the
 
cash
 
flow
 
from
 
financing
 
activities
 
,
 
and
 
the
 
interest
 
related
 
to
 
leases
 
are
presented
 
in
 
the
 
cash
 
flow
 
from
 
operating
 
activities.
 
Lease
 
payments
 
related
 
to
 
short-term
 
leases,
 
low-value
assets
 
,
 
and
 
variable
 
payments
 
are
 
presented
 
in
 
the
 
cash
 
flow
 
from
 
operating
 
activities.
Contracts
 
may
 
combine
 
different
 
kinds
 
of
 
obligations
 
to
 
the
 
supplier,
 
which
 
might
 
be
 
a
 
combination
 
of
 
lease
components
 
or
 
a
 
combination
 
of
 
lease
 
and
 
non
 
-lease
 
components.
 
These
 
lease
 
and
 
non-lease
 
components
are
 
accounted
 
for
 
separately
 
and
 
the
 
consideration
 
is
 
allocated
 
between
 
the
 
components
 
based
 
on
 
relative
stand-alone
 
selling
 
prices.
The
 
lease
 
and
 
non-lease
 
components
 
are
 
separated.
 
Should
 
separating
 
the
 
components
 
not
 
be
 
possible,
judgement
 
is
 
used
 
to
 
allocate
 
the
 
non-lease
 
component
 
in
 
the
 
accounting.
 
The
 
selection
 
of
 
separating
 
the
non-lease
 
component
 
or
 
not
 
from
 
the
 
lease
 
,
 
is
 
applied
 
to
 
the
 
whole
 
asset
 
class,
 
buildings,
 
and
 
machinery
and
 
equipment.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
 
 
Modifications
 
to
 
lease
 
agreements
 
may
 
result
 
in
 
adjustments
 
to
 
existing
 
right-of-use
 
assets
 
and
 
lease
liabilities.
 
A
 
gain
 
or
 
loss
 
arising
 
from
 
a
 
modification
 
or
 
a
 
termination
 
of
 
a
 
lease
 
agreement
 
is
 
recognised
 
as
other
 
operating
 
income
 
or
 
other
 
operating
 
expenses
 
in
 
the
 
statement
 
of
 
income.
The
 
Group
 
applies
 
the
 
two
 
available
 
exemptions,
 
which
 
relate
 
to
 
either
 
short-term
 
contracts,
 
in
 
which
 
the
lease
 
term
 
is
 
less
 
than
 
12
 
months,
 
or
 
low
 
-value
 
assets,
 
which
 
are
 
expensed
 
to
 
other
 
operating
 
expenses.
Accounting
 
estimates
 
and
 
judgements
Management
 
judgement
 
based
 
on
 
realistic
 
estimates
 
is
 
used
 
when
 
determining
 
the
 
lease
 
term,
 
especially
concerning
 
lease
 
agreements
 
for
 
buildings
 
containing
 
termination
 
or
 
extension
 
options
 
and
 
lease
agreements
 
with
 
an
 
indefinite
 
lease
 
term.
 
 
MEUR
2020
2019
Land
 
and
 
buildings,
 
right-of
 
-use
 
assets
Carrying
 
amount
 
on
 
1
 
January
 
2020
174
203
Changes
 
in
 
exchange
 
rates
-6
Acquisitions
 
and
 
disposals
-2
Additions
29
28
Depreciation
 
and
 
impairment
-40
-43
Decreases
 
and
 
reclassifications
-6
-14
Carrying
 
amount
 
on
 
31
 
December
 
2020
151
174
Machinery
 
and
 
equipment,
 
right-of
 
-use
 
assets
Carrying
 
amount
 
on
 
1
 
January
 
2020
11
12
Additions
8
6
Depreciation
 
and
 
impairment
-7
-6
Decreases
 
and
 
reclassifications
-1
-1
Carrying
 
amount
 
on
 
31
 
December
 
2020
11
11
Lease
 
liabilities
Carrying
 
amount
 
on
 
1
 
January
 
2020
188
215
Changes
 
in
 
exchange
 
rates
-6
Acquisitions
 
and
 
disposals
-1
Additions
37
33
Interest
 
expenses
2
Payments
-45
-49
Other
 
adjustments
-7
-13
Carrying
 
amount
 
on
 
31
 
December
 
2020
166
188
Total
 
lease
 
liabilities
Non
 
-current
124
146
Current
42
42
 
MEUR
2020
2019
Amounts
 
recognised
 
in
 
statement
 
of
 
income
Depreciation
 
and
 
impairment
 
of
 
right-of
 
-use
 
assets
-47
-49
Interest
 
expenses
-4
-5
Expense
 
-
 
short
 
-term
 
leases
-27
-32
Expense
 
-
 
leases
 
of
 
low
 
-value
 
assets
-4
-6
Expense
 
-
 
variable
 
lease
 
payments
-4
-4
 
3.5.
 
DEPRECIATION,
 
AMORTISATION
 
AND
 
IMPAIRMENT
 
MEUR
2020
2019
Development
 
expenses
12
11
Purchase
 
price
 
allocation
 
amortisation
33
41
Other
 
intangible
 
assets
9
10
Buildings
 
and
 
structures
12
13
Land
 
and
 
buildings,
 
right
 
-of
 
-use
 
assets
40
43
Machinery
 
and
 
equipment
38
40
Machinery
 
and
 
equipment,
 
right-of
 
-use
 
assets
7
6
Other
 
tangible
 
assets
1
1
Impairment
21
15
Total
174
180
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
 
 
 
 
 
4.
 
WORKING
 
CAPITAL
 
AND
 
OTHER
 
BALANCE
 
SHEET
 
ITEMS
4.1.
 
INVENTORIES
Accounting
 
principles
Inventories
 
are
 
valued
 
at
 
the
 
lower
 
of
 
cost
 
and
 
net
 
realisable
 
value.
 
Materials
 
and
 
consumables
 
are
 
valued
at
 
weighted
 
average
 
cost
 
or
 
at
 
moving
 
average
 
price.
 
Finished
 
products
 
are
 
valued
 
at
 
direct
 
purchasing
 
and
manufacturing
 
costs
 
plus
 
allocated
 
purchasing
 
and
 
manufacturing
 
overhead
 
costs.
 
Work
 
in
 
progress
includes
 
costs
 
for
 
direct
 
labour
 
and
 
material
 
costs
 
,
 
and
 
allocated
 
overhead
 
costs
 
related
 
to
 
manufacturing
and
 
purchasing
 
when
 
control
 
has
 
not
 
yet
 
been
 
transferred
 
to
 
the
 
customer
 
.
Accounting
 
estimates
 
and
 
judgements
Writing
 
down
 
inventories
 
to
 
net
 
realisable
 
value
 
due
 
to
 
obsolete
 
and
 
excess
 
stock,
 
is
 
performed
 
based
 
on
the
 
management’s
 
best
 
estimate
 
on
 
the
 
balance
 
sheet
 
date.
 
An
 
analysis
 
of
 
inventory
 
ageing,
 
turn-
 
over,
 
and
compos
 
ition
 
compared
 
to
 
anticipated
 
future
 
use,
 
is
 
the
 
basis
 
for
 
the
 
estimates.
 
MEUR
2020
2019
Materials
 
and
 
consumables
453
484
Work
 
in
 
progress
632
736
Finished
 
products
45
53
Advances
 
paid
 
62
93
Total
1,192
1,365
 
In
 
2020,
 
EUR
 
24
 
million
 
(4)
 
impairment
 
for
 
obsolete
 
inventories
 
has
 
been
 
recognised
 
in
 
the
 
consolidated
statement
 
of
 
income.
 
The
 
total
 
value
 
of
 
inventories
 
related
 
to
 
assets
 
held
 
for
 
sale
 
amounts
 
to
 
EUR
 
23
 
million
(18).
 
Although
 
COVID-
 
19
 
has
 
impacted
 
spare
 
part
 
sales
 
volumes
 
to
 
some
 
extent,
 
the
 
impact
 
is
 
not
 
so
 
significant
that
 
it
 
would
 
elevate
 
the
 
inherent
 
risk
 
of
 
valuation
 
relating
 
to
 
inventories.
 
Cancellations
 
of
 
orders
 
have
 
been
largely
 
in
 
line
 
with
 
normal
 
levels
 
in
 
Wärtsilä.
 
Also,
 
Wärtsilä
 
safeguards
 
the
 
recoverability
 
of
 
work
 
in
 
progress
with
 
advance
 
payments
 
collected
 
from
 
customers.
 
4.2.
 
TRADE
 
RECEIVABLES
 
AND
 
CONTRACT
 
ASSETS
 
AND
 
LIABILITIES
Accounting
 
principles
Trade
 
receivables
 
are
 
recognised
 
when
 
the
 
right
 
to
 
consideration
 
becomes
 
unconditional.
 
The
 
Group’s
trade
 
receivables
 
are
 
measured
 
at
 
amortised
 
cost,
 
which
 
is
 
the
 
original
 
invoiced
 
amount
 
less
 
an
 
estimated
valuation
 
allowance
 
for
 
impairment.
 
The
 
Group
 
assesses
 
any
 
possible
 
increase
 
in
 
the
 
credit
 
risk
 
for
financial
 
assets
 
measured
 
at
 
amortised
 
cost
 
at
 
the
 
end
 
of
 
each
 
reporting
 
period
 
individually.
 
The
methodology
 
applied
 
depends
 
on
 
whether
 
there
 
has
 
been
 
a
 
significant
 
increase
 
in
 
credit
 
risk.
 
If
 
there
 
has
not
 
been
 
a
 
significant
 
increase
 
in
 
credit
 
risk,
 
the
 
loss
 
allowance
 
is
 
estimated
 
at
 
an
 
amount
 
equal
 
to
 
lifetime
expected
 
credit
 
losses
 
at
 
the
 
current
 
reporting
 
date.
For
 
trade
 
receivables
 
and
 
contract
 
assets,
 
a
 
simplified
 
approach
 
is
 
used,
 
and
 
the
 
loss
 
allowance
 
is
measured
 
at
 
the
 
estimate
 
of
 
the
 
lifetime
 
expected
 
credit
 
losses.
 
The
 
Group
 
uses
 
a
 
provision
 
matrix
 
for
estimating
 
the
 
expected
 
credit
 
loss
 
where
 
receivables
 
are
 
segregated
 
depending
 
on
 
the
 
ag
 
eing
 
category
and
 
the
 
origin
 
of
 
the
 
receivable.
 
The
 
Group
 
has
 
an
 
effective
 
collection
 
process
 
in
 
place
 
which
 
decreases
 
the
possible
 
risk
 
of
 
credit
 
losses.
 
Also,
 
to
 
mitigate
 
the
 
credit
 
risk,
 
advance
 
payments
 
and
 
payment
 
guarantees
are
 
in
 
use.
 
In
 
calculating
 
the
 
expected
 
credit
 
loss
 
rates,
 
the
 
Group
 
considers
 
historical
 
loss
 
rates
 
for
 
each
category,
 
and
 
adjusts
 
for
 
forward
 
looking
 
macroeconomic
 
data.
 
Based
 
on
 
the
 
analysis,
 
for
 
trade
 
receivables
not
 
due,
 
or
 
a
 
maximum
 
of
 
359
 
days
 
overdue,
 
an
 
impairment
 
of
 
0.1%
 
-2.0%
 
is
 
made.
 
In
 
addition
 
to
 
that,
 
trade
receivables
 
more
 
than
 
360
 
days
 
old
 
are
 
assessed
 
individually
 
for
 
impairment.
 
Examples
 
of
 
events
 
giving
rise
 
to
 
impairment
 
include
 
a
 
debtor’s
 
serious
 
financial
 
problems,
 
and
 
a
 
debtor’s
 
probable
 
bankruptcy
 
or
other
 
financial
 
arrangement.
Trade
 
receivables
 
are
 
permanently
 
written
 
off
 
when
 
there
 
is
 
no
 
reasonable
 
expectation
 
of
 
recovery.
The
 
Group
 
may
 
sell
 
undivided
 
interests
 
in
 
trade
 
receivables
 
on
 
an
 
ongoing
 
and
 
one
 
-time
 
basis
 
to
 
lending
institutions.
 
Financial
 
assets
 
sold
 
under
 
these
 
arrangements
 
are
 
excluded
 
from
 
trade
 
receivables
 
in
 
the
statement
 
of
 
financial
 
position
 
at
 
the
 
time
 
of
 
payment
 
from
 
the
 
acquirer,
 
providing
 
that
 
substantially
 
all
 
risks
and
 
rewards
 
have
 
been
 
transferred.
 
If
 
the
 
acquirer
 
has
 
not
 
settled
 
payment
 
to
 
the
 
extent
 
that
 
the
 
ownership,
risk
 
,
 
and
 
control
 
over
 
the
 
receivable
 
have
 
been
 
substantially
 
transferred,
 
then
 
such
 
financial
 
assets
 
sold
 
are
re-
 
recognised
 
in
 
the
 
statement
 
of
 
financial
 
position
 
at
 
the
 
end
 
of
 
the
 
reporting
 
period.
Contract
 
assets
 
and
 
liabilities
 
are
 
related
 
to
 
contracts
 
with
 
customers.
When
 
control
 
over
 
goods
 
or
 
services
 
is
 
transferred
 
to
 
a
 
customer
 
before
 
the
 
customer
 
pays
 
the
consideration,
 
the
 
receivable
 
is
 
recognised
 
as
 
a
 
contract
 
asset.
 
The
 
contract
 
asset
 
represents
 
the
 
right
 
to
future
 
consideration.
 
Contract
 
assets
 
primarily
 
relate
 
to
 
the
 
Group’s
 
right
 
to
 
consideration
 
for
 
transferred
goods
 
or
 
services,
 
but
 
which
 
is
 
not
 
yet
 
billed
 
at
 
the
 
reporting
 
date.
 
The
 
contract
 
assets
 
are
 
transferred
 
to
trade
 
receivables
 
when
 
the
 
rights
 
become
 
unconditional.
When
 
the
 
customer
 
pays
 
consideration
 
in
 
advance,
 
or
 
when
 
the
 
consideration
 
is
 
due
 
before
 
transferring
 
the
contractual
 
performance
 
obligation,
 
the
 
amount
 
received
 
in
 
advance
 
is
 
presented
 
as
 
a
 
contract
 
liability.
Contract
 
liabilities
 
are
 
recognised
 
as
 
revenue
 
when
 
the
 
Group
 
performs
 
under
 
the
 
contract.
 
Advances
received
 
and
 
deferred
 
revenue
 
relate
 
to
 
payment
 
s
 
received,
 
or
 
invoicing
 
in
 
excess
 
of
 
revenue
 
recognised.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
 
 
Accounting
 
estimates
 
and
 
judgements
Estimated
 
expected
 
credit
 
loss
 
provisions
 
are
 
based
 
on
 
management’s
 
best
 
judgement.
 
Management
judgement
 
includes
 
past
 
years’
 
experience
 
and
 
a
 
forward
 
-looking
 
understanding
 
of
 
the
 
client
 
’s
 
payment
behaviour
 
and
 
economic
 
situation.
Assessing
 
whether
 
or
 
not
 
it
 
is
 
probable
 
that
 
the
 
consideration
 
from
 
contracts
 
with
 
customers
 
will
 
be
collected
 
requires
 
judgement,
 
and
 
might
 
impact
 
the
 
timing
 
and
 
amount
 
of
 
revenue
 
recognition.
 
Contract
 
assets
 
and
 
liabilities
 
MEUR
2020
2019
Trade
 
receivables
953
1,255
Contract
 
assets
389
515
Contract
 
liabilities
Advances
 
received
452
452
Deferred
 
income
524
465
Trade
 
receivables
 
and
 
contract
 
assets
Non
 
-current
30
19
Current
1,311
1,752
Contract
 
liabilities
Non
 
-current
51
38
Current
926
880
Revenue
 
recognised
 
in
 
the
 
financial
 
period
 
that
 
was
 
included
 
in
 
the
 
contract
 
liability
on
 
1
 
January
880
888
Unsatisfied
 
performance
 
obligations,
 
all
 
revenue
 
types
6,748
7,427
of
 
which
 
remaining
 
performance
 
obligations
 
from
 
projects
 
and
 
contracts
 
under
execution
3,898
3,959
 
The
 
contract
 
assets
 
and
 
liabilities
 
arise
 
from
 
long
 
-term
 
service
 
agreements
 
and
 
projects
 
recognised
 
over
 
time,
such
 
as
 
gas
 
solutions
 
construction
 
contracts,
 
integrated
 
solutions
 
projects,
 
ship
 
design,
 
and
 
energy
 
solutions
turnkey
 
contracts.
 
The
 
decrease
 
in
 
contract
 
assets
 
arises
 
from
 
usual
 
business
 
-related
 
project
 
variations
 
mainly
in
 
Energy
 
business.
 
Also
 
,
 
the
 
increase
 
in
 
contract
 
liabilities
 
arises
 
from
 
usual
 
business
 
-related
 
project
variations,
 
mainly
 
in
 
Marine
 
Systems
 
business.
 
Credit
 
risk
 
included
 
in
 
Wärtsilä’s
 
receivables
 
and
 
the
 
recoverability
 
of
 
contract
 
assets
 
has
 
been
 
evaluated
under
 
the
 
uncertain
 
ty
 
caused
 
by
 
the
 
COVID
 
-19
 
pandemic.
 
There
 
has
 
not
 
been
 
any
 
significant
 
indication
 
of
change
 
in
 
customer
 
payment
 
behavior,
 
and
 
therefore
 
same
 
principles
 
have
 
been
 
applied
 
for
 
expected
 
credit
loss
 
recognition
 
as
 
in
 
the
 
annual
 
report
 
2019.
 
The
 
collection
 
of
 
trade
 
receivables
 
has
 
been
 
emphasised.
 
The
risk
 
in
 
the
 
recoverability
 
of
 
the
 
contract
 
assets
 
is
 
not
 
seen
 
to
 
have
 
significantly
 
increased.
 
As
 
of
 
the
 
reporting
date,
 
Wärtsilä
 
has
 
not
 
received
 
any
 
significant
 
cancellations
 
for
 
projects
 
or
 
long
 
-term
 
agreements
 
under
execution.
 
Cancellations
 
and
 
postponements
 
of
 
orders
 
have
 
largely
 
been
 
in
 
line
 
with
 
the
 
normal
 
levels.
 
Ageing
 
of
 
trade
 
receivables
 
2020
2019
MEUR
Trade
 
receivables
of
 
which
 
impaired
Trade
 
receivables
of
 
which
 
impaired
Not
 
past
 
due
657
1
788
1
Past
 
due
 
1–30
 
days
112
0
149
0
Past
 
due
 
31–180
 
days
123
2
227
2
Past
 
due
 
181–360
 
days
29
3
73
1
Past
 
due
 
1
 
year
93
56
81
57
Total
1,014
61
1,317
61
 
In
 
2020,
 
the
 
result
 
impact
 
of
 
write-offs
 
was
 
EUR
 
-5
 
million
 
(-7).
 
Impairment
 
MEUR
2020
2019
Impairment,
 
beginning
 
of
 
period
61
62
Money
 
received
-27
-10
Impairment
 
during
 
the
 
period
34
17
Write
 
-off
 
during
 
the
 
period
-5
-7
Impairment,
 
end
 
of
 
period
61
61
 
The
 
Group
 
sells
 
trade
 
receivables
 
in
 
an
 
amount
 
that
 
is
 
currently
 
not
 
significant
 
compared
 
to
 
the
 
trade
receivables
 
as
 
a
 
whole.
 
Sold
 
receivables
 
have
 
been
 
de
 
-recognised
 
in
 
the
 
statement
 
of
 
financial
 
position.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
 
 
 
4.3.
 
OTHER
 
RECEIVABLES
Accounting
 
principles
Other
 
receivables
 
are
 
recognised
 
at
 
amortised
 
cost.
 
MEUR
2020
2019
Derivatives
37
24
Interest
 
and
 
other
 
financial
 
items
4
6
Insurance
 
receivables
3
6
Rental
 
accruals
2
3
Prepaid
 
expenses
6
14
Other
 
accruals
34
41
Loan
 
receivables
2
2
Defined
 
benefit
 
plans
1
1
VAT
 
receivables
124
111
Other*
56
88
Total
269
296
Non
 
-current
11
15
Current
258
281
 
*
 
Other
 
receivables
 
includes
 
payroll
 
related
 
tax
 
receivables
 
of
 
EUR
 
7
 
million
 
(9)
 
in
 
Brazil,
 
which
 
cannot
 
be
utilised
 
likely
 
within
 
a
 
year.
 
In
 
2019
 
current
 
other
 
receivables
 
also
 
included
 
a
 
receivable
 
of
 
EUR
 
21
 
million
relating
 
to
 
disposal
 
of
 
pump
 
business,
 
which
 
has
 
been
 
received
 
in
 
2020.
 
4.4.
 
TRADE
 
PAYABLES
 
AND
 
OTHER
 
LIABILITIES
Accounting
 
principles
Trade
 
payables
 
and
 
other
 
liabilities
 
are
 
initially
 
recognised
 
at
 
fair
 
value
 
and
 
subsequently
 
measured
 
at
amortised
 
cost.
 
MEUR
2020
2019
Trade
 
payables
411
624
Accrued
 
expenses
315
320
Personnel
 
costs
154
125
Derivatives
27
23
Interest
 
and
 
other
 
financial
 
items
4
4
Other
 
accruals
43
41
VAT
 
liabilities
40
39
Other
81
70
Total
1,076
1,247
Non
 
-current
1
1
Current
1,075
1,246
 
4.5.
 
PROVISIONS
Accounting
 
principles
Provisions
 
are
 
recognised
 
in
 
the
 
statement
 
of
 
financial
 
position
 
when
 
the
 
Group
 
has
 
a
 
present
 
legal
 
or
constructive
 
obligation
 
as
 
a
 
result
 
of
 
a
 
past
 
event,
 
and
 
it
 
is
 
probable
 
that
 
an
 
outflow
 
of
 
economic
 
benefits
 
will
be
 
required
 
to
 
settle
 
the
 
obligation
 
and
 
a
 
reliable
 
estimate
 
can
 
be
 
made
 
of
 
the
 
amount
 
of
 
the
 
obligation.
Provisions
 
can
 
arise,
 
for
 
example,
 
from
 
warranties,
 
environmental
 
risks,
 
litigation,
 
foreseeable
 
losses
 
on
projects,
 
and
 
restructuring
 
costs.
 
The
 
amount
 
to
 
be
 
recognised
 
as
 
provisions
 
corresponds
 
to
 
the
management’s
 
best
 
estimate
 
of
 
the
 
expenses
 
that
 
will
 
be
 
necessary
 
to
 
meet
 
the
 
existing
 
obligation
 
at
 
the
end
 
of
 
the
 
reporting
 
period.
Warranty
 
provisions
 
include
 
estimated
 
future
 
warranty
 
costs
 
relating
 
to
 
products
 
delivered.
 
The
 
amount
 
of
future
 
warranty
 
costs
 
is
 
based
 
on
 
accumulated
 
historical
 
experience.
 
Typically
 
the
 
standard
 
warranty
 
period
is
 
one
 
year
 
from
 
the
 
delivery
 
onwards.
Provisions
 
for
 
restructuring
 
costs
 
are
 
made
 
once
 
the
 
restructuring
 
plan
 
has
 
been
 
approved
 
and
 
the
implementation
 
started,
 
or
 
the
 
personnel
 
concerned
 
have
 
been
 
informed
 
of
 
the
 
terms.
 
The
 
plan
 
must
indicate
 
which
 
activities
 
and
 
personnel
 
will
 
be
 
affected
 
,
 
as
 
well
 
as
 
the
 
timing
 
and
 
cost
 
of
 
implementation.
The
 
Group
 
is
 
a
 
defendant
 
in
 
a
 
number
 
of
 
legal
 
cases
 
which
 
arise
 
out
 
of,
 
or
 
are
 
incidental
 
to,
 
the
 
ordinary
course
 
of
 
its
 
business.
 
These
 
lawsuits
 
concern
 
mainly
 
issues
 
,
 
such
 
as
 
contractual
 
and
 
other
 
liability,
 
labour
relations,
 
property
 
damage
 
and
 
regulatory
 
matters.
 
The
 
Group
 
receives
 
from
 
time
 
to
 
time
 
claims
 
of
 
different
amounts
 
and
 
with
 
varying
 
degrees
 
of
 
substantiation.
 
It
 
is
 
the
 
Group’s
 
policy
 
to
 
provide
 
for
 
amounts
 
related
to
 
the
 
claims
 
,
 
as
 
well
 
as
 
for
 
the
 
litigation
 
and
 
arbitration
 
matters
 
when
 
an
 
unfavourable
 
outcome
 
is
 
probable
and
 
the
 
amount
 
of
 
loss
 
can
 
be
 
reasonably
 
estimated.
Accounting
 
estimates
 
and
 
judgements
The
 
Group
 
is
 
a
 
defendant
 
in
 
a
 
number
 
of
 
legal
 
cases
 
arising
 
from
 
its
 
business
 
operations.
 
A
 
provision
 
for
 
a
court
 
case
 
is
 
recognised
 
when
 
an
 
unfavourable
 
result
 
is
 
probable,
 
and
 
the
 
loss
 
can
 
be
 
determined
 
with
reasonable
 
certainty.
 
The
 
final
 
result
 
can
 
differ
 
from
 
these
 
estimates.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
 
 
 
2020
 
MEUR
Litigation
Warranties
Onerous
 
contracts
Restruc
 
-
turing
Other
 
provisions
Total
Provisions
 
on
 
1
 
January
 
2020
10
174
89
13
38
323
Changes
 
in
 
exchange
 
rates
0
-2
-3
0
-1
-6
Disposals
0
-2
0
0
0
-2
Additions
2
49
87
12
21
170
Used
 
provisions
-1
-42
-87
-13
-5
-148
Released
 
provisions
0
-2
-6
-2
-2
-13
Provisions
 
on
 
31
 
December
 
2020
10
174
80
9
50
324
Non
 
-current
55
Current
269
 
There
 
is
 
currently
 
one
 
unusually
 
sizeable
 
claim,
 
but
 
it
 
is
 
highly
 
unlikely
 
that
 
the
 
outcome
 
of
 
it
 
will
 
be
unfavourable.
 
The
 
claim
 
is
 
treated
 
as
 
a
 
contingent
 
liability.
 
2019
 
MEUR
Litigation
Warranties
Onerous
 
contracts
Restruc
 
-
turing
Other
 
provisions
Total
Provisions
 
on
 
1
 
January
 
2019
21
172
67
7
38
305
Changes
 
in
 
exchange
 
rates
1
Additions
4
52
100
20
14
190
Used
 
provisions
-14
-51
-71
-13
-9
-159
Released
 
provisions
-1
-7
-2
-5
-14
Provisions
 
on
 
31
 
December
 
2019
10
174
89
13
38
323
Non
 
-current
45
Current
278
 
4.6.
 
DEFERRED
 
TAXES
Accounting
 
principles
Deferred
 
tax
 
liabilities
 
and
 
assets
 
are
 
calculated
 
on
 
temporary
 
differences
 
arising
 
from
 
the
 
difference
between
 
the
 
tax
 
basis
 
of
 
assets
 
and
 
liabilities
 
,
 
and
 
the
 
carrying
 
values
 
using
 
the
 
enacted
 
or
 
substantially
enacted
 
tax
 
rates
 
at
 
the
 
end
 
of
 
t
 
he
 
reporting
 
period.
 
The
 
statement
 
of
 
financial
 
position
 
includes
 
deferred
tax
 
liabilities
 
in
 
their
 
entirety
 
and
 
deferred
 
tax
 
assets
 
at
 
their
 
estimated
 
probable
 
amount.
Deferred
 
tax
 
assets
 
and
 
liabilities
 
are
 
offset
 
when
 
there
 
is
 
a
 
legally
 
enforceable
 
right
 
to
 
offset
 
current
 
tax
assets
 
against
 
current
 
tax
 
liabilities,
 
and
 
when
 
the
 
deferred
 
tax
 
assets
 
and
 
liabilities
 
relate
 
to
 
income
 
taxes
levied
 
by
 
the
 
same
 
taxation
 
authority
 
on
 
either
 
the
 
same
 
taxable
 
entity
 
,
 
or
 
different
 
taxable
 
entities
 
which
intend
 
to
 
settle
 
the
 
balances
 
on
 
a
 
net
 
basis.
Accounting
 
estimates
 
and
 
judgements
Estimates
 
of
 
tax
 
liabilities
 
and
 
receivables
 
relate
 
mainly
 
to
 
the
 
expected
 
result
 
of
 
ongoing
 
tax
 
audits,
 
and
 
to
the
 
recognition
 
of
 
deferred
 
tax
 
receivables
 
from
 
tax
 
losses.
 
Deferred
 
tax
 
assets
 
on
 
unutilised
 
tax
 
losses
 
and
other
 
temporary
 
differences
 
are
 
recognised
 
to
 
the
 
extent
 
it
 
is
 
highly
 
probable
 
that
 
taxable
 
profit
 
is
 
available.
No
 
deferred
 
tax
 
assets
 
are
 
recognised
 
from
 
tax
 
losses
 
when
 
there
 
is
 
uncertainty
 
of
 
their
 
utili
 
sation.
 
Changes
 
in
 
deferred
 
taxes
 
during
 
2020
MEUR
1
 
January
2020
Recog
 
-
nised
 
in
 
the
 
con-
solidated
statement
of
 
income
Other
 
compre
 
-
hensive
 
income
Transla
 
-
tion
 
dif-
ferences
Acquisi
 
-
tions
 
and
 
disposals
31
December
2020
Deferred
 
tax
 
assets
Tax
 
loss
 
carry
 
-forwards
34
27
0
-1
-1
58
Pension
 
obligations
27
-1
-1
0
0
25
Provisions
35
2
0
-1
0
36
Elimination
 
of
 
intragroup
 
margin
 
in
inventories
6
1
0
0
0
7
Fair
 
value
 
reserve
6
0
1
-1
0
6
Other
 
temporary
 
differences
55
10
0
-4
2
63
Reclassification
 
to
 
assets
 
held
 
for
sale
-8
-12
Total
155
39
0
-8
0
183
Deferred
 
tax
 
liabilities
Intangible
 
assets
 
and
 
property,
plant
 
and
 
equipment
59
-7
0
-2
0
50
Fair
 
value
 
reserve
1
0
1
0
0
2
Other
 
temporary
 
differences
32
5
-1
-1
1
36
Reclassification
 
to
 
assets
 
held
 
for
sale
-8
-12
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
 
 
Total
83
-1
0
-2
1
76
Net
 
deferred
 
tax
 
assets/liabilities
72
40
0
-6
-1
107
 
On
 
31
 
December
 
2020,
 
the
 
Group
 
had
 
temporary
 
differences
 
on
 
which
 
no
 
deferred
 
tax
 
assets
 
were
 
booked
 
,
totalling
 
EUR
 
68
 
million
 
(64),
 
as
 
it
 
is
 
uncertain
 
if
 
they
 
will
 
be
 
realised.
 
Most
 
of
 
the
 
unrecognised
 
deferred
 
tax
assets
 
are
 
related
 
to
 
cumulative
 
tax
 
losses.
 
Of
 
these,
 
EUR
 
19
 
million
 
(29)
 
will
 
expire
 
within
 
the
 
next
 
five
 
years
and
 
the
 
rest
 
will
 
expire
 
later
 
or
 
never.
 
Most
 
of
 
the
 
cumulative
 
tax
 
losses
 
on
 
which
 
deferred
 
tax
 
assets
 
have
been
 
booked
 
will
 
never
 
expire.
 
Changes
 
in
 
deferred
 
taxes
 
during
 
2019
MEUR
1
 
January
2019
Recog
 
-
nised
 
in
 
the
 
con-
solidated
statement
of
 
income
Other
 
compre
 
-
hensive
 
income
Transla
 
-
tion
 
dif-
ferences
Acquisi
 
-
tions
31
December
2019
Deferred
 
tax
 
assets
Tax
 
loss
 
carry
 
-forwards
18
17
-1
34
Pension
 
obligations
21
1
5
27
Provisions
28
7
35
Elimination
 
of
 
intragroup
 
margin
 
in
inventories
5
1
6
Fair
 
value
 
reserve
9
-3
6
Other
 
temporary
 
differences
49
6
-1
55
Reclassification
 
to
 
assets
 
held
 
for
sale
-8
Total
129
32
2
-2
155
Deferred
 
tax
 
liabilities
Intangible
 
assets
 
and
 
property,
plant
 
and
 
equipment
66
-10
2
59
Fair
 
value
 
reserve
1
1
Other
 
temporary
 
differences
32
32
Reclassification
 
to
 
assets
 
held
 
for
sale
-8
Total
99
-10
1
1
83
Net
 
deferred
 
tax
 
assets/liabilities
30
41
1
-1
-2
72
 
4.7.
 
PENSION
 
OBLIGATIONS
Accounting
 
principles
Group
 
companies
 
in
 
different
 
countries
 
have
 
various
 
pension
 
plans
 
in
 
accordance
 
with
 
local
 
conditions
 
and
practices.
 
These
 
pension
 
plans
 
are
 
classified
 
either
 
as
 
defined
 
contribution
 
or
 
defined
 
benefit
 
plans.
Defined
 
benefit
 
plans
 
are
 
funded
 
through
 
contributions
 
to
 
pension
 
funds
 
or
 
pension
 
insurance
 
companies.
Defined
 
benefit
 
plans
 
may
 
be
 
unfunded
 
or
 
wholly
 
or
 
partly
 
funded.
 
The
 
present
 
value
 
of
 
the
 
obligation
arising
 
from
 
the
 
defined
 
benefit
 
plans
 
is
 
determined
 
per
 
each
 
plan
 
using
 
actuarial
 
techniques,
 
the
 
projected
unit
 
credit
 
method.
 
The
 
Group
 
recognises
 
the
 
defined
 
benefit
 
obligation
 
,
 
net
 
of
 
fair
 
value
 
of
 
the
 
plan
 
assets
 
,
at
 
the
 
end
 
of
 
the
 
financial
 
period.
Actuarial
 
gains
 
and
 
losses
 
and
 
other
 
re
 
-measurements
 
of
 
the
 
net
 
defined
 
benefit
 
obligation
 
are
 
recognised
immediately
 
in
 
the
 
statement
 
of
 
other
 
comprehensive
 
income.
 
Current
 
service
 
cost
 
is
 
the
 
present
 
value
 
of
the
 
post-employment
 
benefit,
 
which
 
is
 
earned
 
by
 
the
 
employees
 
during
 
the
 
year.
 
The
 
Group
 
determines
 
the
net
 
interest
 
expense
 
on
 
the
 
net
 
defined
 
benefit
 
plan
 
by
 
applying
 
the
 
discount
 
rate
 
used
 
to
 
measure
 
the
defined
 
benefit
 
obligation.
 
Service
 
cost
 
is
 
recognised
 
in
 
employee
 
benefit
 
expenses
 
and
 
the
 
net
 
interest
 
in
financial
 
expenses.
 
The
 
defined
 
benefit
 
plans
 
are
 
calculated
 
by
 
qualified
 
actuaries.
In
 
addition
 
to
 
defined
 
benefit
 
plans,
 
Wärtsilä
 
has
 
other
 
long
 
-term
 
employee
 
benefits
 
,
 
which
 
are
 
presented
separately
 
from
 
the
 
defined
 
benefit
 
plans.
 
As
 
with
 
the
 
accounting
 
for
 
a
 
defined
 
benefit
 
plan,
 
for
 
any
 
other
long-term
 
benefit
 
the
 
Group
 
recognises
 
a
 
liability
 
for
 
the
 
obligation
 
,
 
net
 
of
 
the
 
fair
 
value
 
of
 
the
 
plan
 
assets,
 
if
any.
 
Changes
 
in
 
other
 
long
 
-term
 
employee
 
benefits
 
are
 
recognised
 
in
 
the
 
statement
 
of
 
income.
Accounting
 
principles
 
for
 
defined
 
contribution
 
plans
 
are
 
presented
 
in
 
Note
 
2.5.
 
Employee
 
benefit
 
expenses.
Accounting
 
estimates
 
and
 
judgements
Estimates
 
of
 
pension
 
obligations
 
regarding
 
each
 
defined
 
benefit
 
plan
 
are
 
based
 
on
 
actuarial
 
estimates
 
of
factors
 
,
 
including
 
future
 
salary
 
increases,
 
discount
 
rates,
 
and
 
return
 
on
 
plan
 
assets.
 
Changes
 
in
 
these
assumptions
 
can
 
significantly
 
affect
 
the
 
Group’s
 
pension
 
obligations
 
and
 
pension
 
costs.
 
MEUR
2020
2019
Net
 
defined
 
benefit
 
liabilities
 
on
 
31
 
December
139
155
Liability
 
for
 
other
 
long-term
 
employee
 
benefits
 
on
 
31
 
December
16
15
 
Wärtsilä
 
has
 
defined
 
benefit
 
plans
 
for
 
its
 
employees
 
mainly
 
in
 
Europe
 
and
 
Asia.
 
The
 
major
 
plans
 
are
 
located
 
in
Switzerland,
 
Germany,
 
United
 
Kingdom
 
and
 
Sweden.
 
The
 
Swiss
 
defined
 
benefit
 
plan
 
accounts
 
for
 
32%
 
of
 
the
Group's
 
total
 
defined
 
benefit
 
obligations
 
and
 
56%
 
of
 
the
 
plans'
 
assets.
 
Most
 
of
 
the
 
plans
 
provide
 
a
 
lifetime
pension
 
to
 
the
 
members
 
at
 
the
 
normal
 
retirement
 
age,
 
but
 
there
 
are
 
also
 
plans
 
that
 
provide
 
a
 
lump
 
sum
payment
 
at
 
the
 
retirement
 
date.
 
Most
 
of
 
these
 
defined
 
benefit
 
pension
 
plans
 
are
 
managed
 
by
 
pension
 
funds.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
 
 
Their
 
assets
 
are
 
not
 
included
 
in
 
the
 
Group's
 
assets.
 
The
 
plans'
 
assets
 
are
 
typically
 
invested
 
according
 
to
 
the
investment
 
strategies
 
approved
 
by
 
the
 
funds'
 
Board
 
of
 
Trustees,
 
or
 
in
 
some
 
cases
 
are
 
completely
 
administered
by
 
insurance
 
companies.
 
Wärtsilä
 
Group
 
companies
 
make
 
their
 
payments
 
to
 
pension
 
funds
 
in
 
accordance
 
with
local
 
legislation
 
and
 
practice.
 
Authorised
 
actuaries
 
in
 
each
 
country
 
have
 
performed
 
the
 
actuarial
 
calculations
required
 
for
 
the
 
defined
 
benefit
 
plans.
 
The
 
Swiss
 
plan
Wärtsilä
 
operates
 
a
 
defined
 
benefit
 
plan
 
in
 
Switzerland
 
in
 
accordance
 
with
 
the
 
local
 
pension
 
laws
 
and
regulations.
 
The
 
plan
 
provides
 
benefits
 
to
 
the
 
members
 
in
 
the
 
form
 
of
 
a
 
pension
 
payable
 
after
 
retirement.
 
The
level
 
of
 
benefits
 
provided
 
depends
 
on
 
the
 
accrued
 
retirement
 
savings
 
capital,
 
which
 
is
 
a
 
result
 
of
 
contributions
paid
 
up
 
to
 
retirement
 
plus
 
respective
 
interest.
 
The
 
plan
 
is
 
run
 
as
 
a
 
pension
 
fund
 
by
 
the
 
Board
 
of
 
Trustees
separately
 
from
 
the
 
company.
 
Contributions
 
to
 
the
 
plan
 
are
 
paid
 
both
 
by
 
the
 
employees
 
,
 
as
 
well
 
as
 
by
 
the
 
employers
 
based
 
on
 
a
 
percentage
of
 
the
 
insured
 
salary
 
as
 
defined
 
in
 
the
 
pension
 
fund
 
regulations.
 
Contributions
 
by
 
the
 
employers
 
vary
depending
 
on
 
the
 
age
 
of
 
the
 
emp
 
loyee,
 
and
 
cover
 
on
 
average
 
two
 
thirds
 
of
 
the
 
total
 
contributions.
 
The
 
investment
 
strategy
 
for
 
a
 
pension
 
fund's
 
asset
 
is
 
the
 
responsibility
 
of
 
the
 
Board
 
of
 
Trustees.
 
Assets
 
are
invested
 
in
 
accordance
 
with
 
the
 
strategy
 
and
 
the
 
corridors
 
for
 
different
 
investment
 
categories
 
as
 
defined
 
by
local
 
laws.
 
Other
 
risks
 
of
 
the
 
plan
 
are
 
the
 
longevity
 
of
 
plan
 
members,
 
as
 
well
 
as
 
the
 
death
 
or
 
disability
 
of
employees
 
before
 
their
 
retirement.
 
The
 
pension
 
plan
 
is
 
reinsured
 
for
 
the
 
risk
 
of
 
death
 
and
 
disability
 
until
 
31
December
 
2021.
 
Inflationary
 
increases
 
for
 
pensions
 
in
 
payment
 
are
 
at
 
the
 
discretion
 
of
 
the
 
Board
 
of
 
Trustees
when
 
benefits
 
paid
 
by
 
the
 
plan
 
are
 
exceeding
 
the
 
minimum
 
level
 
required
 
by
 
law.
 
The
 
German
 
plans
Wärtsilä
 
operates
 
defined
 
benefit
 
plans
 
in
 
Germany
 
in
 
accordance
 
with
 
local
 
pension
 
laws
 
and
 
regulations.
 
The
plans
 
provide
 
benefits
 
to
 
the
 
members
 
in
 
the
 
form
 
of
 
a
 
pension
 
payable
 
after
 
retirement.
 
The
 
level
 
of
 
benefits
provided
 
depends
 
on
 
the
 
accrued
 
retirement
 
savings
 
capital,
 
which
 
is
 
a
 
result
 
of
 
contributions
 
paid
 
up
 
to
retirement
 
plus
 
respective
 
interest.
 
The
 
plans
 
vary
 
from
 
unfunded
 
plans
 
,
 
to
 
a
 
plan
 
run
 
as
 
a
 
pension
 
fund.
 
In
 
some
 
of
 
the
 
plans,
 
contributions
 
are
 
paid
 
to
 
the
 
plan
 
,
 
both
 
by
 
the
 
employees
 
and
 
the
 
employers
 
based
 
on
 
a
percentage
 
of
 
the
 
insured
 
salary
 
as
 
defined
 
in
 
the
 
pension
 
fund
 
regulations.
 
However,
 
in
 
some
 
plans
 
only
 
the
employer
 
is
 
obliged
 
to
 
make
 
the
 
payments.
 
Contributions
 
by
 
the
 
employers
 
vary
 
depending
 
on
 
the
 
age
 
of
 
the
employee,
 
the
 
duration
 
of
 
the
 
employment
 
,
 
and
 
also
 
on
 
the
 
positi
 
on
 
of
 
the
 
employee.
 
The
 
main
 
risks
 
of
 
the
 
plans
 
are
 
the
 
longevity
 
of
 
plan
 
members
 
,
 
and
 
the
 
death
 
or
 
disability
 
of
 
employees
 
before
their
 
retirement.
 
In
 
a
 
funded
 
plan,
 
the
 
investment
 
strategy
 
chosen
 
also
 
includes
 
certain
 
risk.
 
Inflationary
increases
 
for
 
pensions
 
in
 
payment
 
are
 
valuated
 
on
 
a
 
yearly
 
basis.
 
MEUR
2020
2019
Present
 
value
 
of
 
unfunded
 
defined
 
benefit
 
obligations
111
119
Present
 
value
 
of
 
funded
 
defined
 
benefit
 
obligations
180
182
Fair
 
value
 
of
 
plan
 
assets
-151
-146
Net
 
liability
 
in
 
the
 
statement
 
of
 
financial
 
position
139
155
 
%
Present
value
 
of
defined
benefit
obligations
Fair
value
of
 
plan
assets
Switzerland
32
56
Germany
19
0
Other
 
Europe
39
32
Asia
9
12
Total
100
100
 
MEUR
Present
value
 
of
defined
benefit
obligation
Fair
value
of
 
plan
assets
Net
defined
benefit
liability
Balance
 
on
 
1
 
January
 
2019
282
-134
149
Changes
 
in
 
exchange
 
rates
5
-4
Recognised
 
in
 
the
 
statement
 
of
 
income:
Current
 
service
 
cost
13
13
Gains
 
(-)
 
/
 
losses
 
(+)
 
on
 
curtailments
 
and
 
settlements
-1
-1
Interest
 
cost
 
(+)
 
/
 
interest
 
income
 
(-)
5
-2
3
Remeasurements
 
recognised
 
in
 
other
 
comprehensive
 
income:
Return
 
on
 
plan
 
assets,
 
excluding
 
interest
 
income
-11
-11
Experience
 
adjustments
1
1
Changes
 
in
 
demographic
 
assumptions
-1
-1
Changes
 
in
 
financial
 
assumptions
30
30
Contribution
 
paid
 
by
 
the
 
plan
 
members
1
-1
Contribution
 
paid
 
by
 
the
 
employer
-10
-10
Benefits
 
paid
-21
10
-12
Reclassification
 
to
 
assets
 
held
 
for
 
sale
-15
7
-8
Balance
 
on
 
31
 
December
 
2019
299
-146
155
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
 
 
Balance
 
on
 
1
 
January
 
2020
299
-146
155
Changes
 
in
 
exchange
 
rates
-2
2
0
Recognised
 
in
 
the
 
statement
 
of
 
income:
Current
 
service
 
cost
10
10
Past
 
service
 
cost
 
(-
 
credit)
1
1
Gains
 
(-)
 
/
 
losses
 
(+)
 
on
 
curtailments
 
and
 
settlements
1
1
Interest
 
cost
 
(+)
 
/
 
interest
 
income
 
(-)
3
-2
2
Remeasurements
 
recognised
 
in
 
other
 
comprehensive
 
income:
Return
 
on
 
plan
 
assets,
 
excluding
 
interest
 
income
-6
-6
Experience
 
adjustments
-4
-4
Changes
 
in
 
financial
 
assumptions
5
5
Contribution
 
paid
 
by
 
the
 
plan
 
members
1
-1
0
Contribution
 
paid
 
by
 
the
 
employer
-8
-8
Benefits
 
paid
-22
9
-14
Reclassification
 
to
 
assets
 
held
 
for
 
sale
-2
-2
Balance
 
on
 
31
 
December
 
2020
290
-151
139
 
 
Plan
 
assets
 
invested
 
in:
%
2020
2019
Shares
 
and
 
other
 
equity
 
instruments
18
18
Bonds
 
and
 
other
 
debt
 
instruments
39
35
Property
17
17
Other
 
assets
26
30
 
 
The
 
main
 
actuarial
 
assumptions
 
at
 
the
 
end
 
of
 
the
 
financial
 
period
 
are
 
(expressed
 
as
 
weighted
averages):
%
2020
2019
Discount
 
rate
1.00
1.08
Future
 
salary
 
growth
2.01
2.03
Future
 
pension
 
growth
1.00
1.14
 
On
 
31
 
December
 
2020,
 
the
 
weighted
 
average
 
duration
 
of
 
the
 
defined
 
benefit
 
obligation
 
was
 
8
 
years
 
(12).
 
The
Group
 
expects
 
to
 
contribute
 
EUR
 
3
 
million
 
(7)
 
to
 
the
 
plans
 
during
 
the
 
next
 
financial
 
period.
 
Assumptions
 
regarding
 
future
 
mortality
 
are
 
set
 
based
 
on
 
actuarial
 
advice
 
in
 
accordance
 
with
 
the
 
published
statistics
 
and
 
experience
 
in
 
each
 
country.
 
These
 
assumptions
 
translate
 
into
 
a
 
weighted
 
average
 
life
expectancy
 
in
 
years
 
for
 
a
 
pensioner
 
at
 
the
 
retirement
 
age
 
as
 
follows:
 
2020
2019
Plan
 
participants
 
retiring
 
at
 
the
 
end
 
of
 
the
 
financial
 
period:
Male
17.3
17.4
Female
19.8
20.0
Plan
 
participants
 
retiring
 
20
 
years
 
after
 
the
 
end
 
of
 
the
 
financial
period:
Male
17.0
18.4
Female
19.1
20.4
 
The
 
following
 
table
 
presents
 
a
 
sensitivity
 
analysis
 
for
 
each
 
significant
 
actuarial
 
assumption
 
showing
 
how
 
the
defined
 
benefit
 
obligation
 
would
 
have
 
been
 
affected
 
by
 
changes
 
in
 
the
 
relevant
 
actuarial
 
assumption
 
that
 
were
reasonably
 
possible
 
at
 
the
 
end
 
of
 
the
 
financial
 
period.
 
This
 
sensitivity
 
analysis
 
applies
 
to
 
the
 
defined
 
benefit
obligation
 
only
 
and
 
not
 
to
 
the
 
net
 
defined
 
benefit
 
pension
 
liability
 
in
 
its
 
entirety.
 
Sensitivity
 
analysis
 
Effect
 
to
 
defined
benefit
 
obligation,
 
MEUR
Change
 
in
assumption
2020
2019
Discount
 
rate
increase
 
1%
-37
-41
Discount
 
rate
decrease
 
1%
48
51
Future
 
salary
 
growth
increase
 
1%
8
10
Future
 
salary
 
growth
decrease
 
1%
-7
-8
Future
 
pension
 
growth
increase
 
1%
29
30
Future
 
pension
 
growth
decrease
 
1%
-15
-16
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
 
 
 
5.
 
CAPITAL
 
STRUCTURE
 
AND
 
FINANCIAL
 
ITEMS
5.1.
 
FINANCIAL
 
INCOME
 
AND
 
EXPENSES
Accounting
 
principles
Service
 
cost
 
related
 
to
 
pension
 
plans
 
is
 
recognised
 
in
 
employee
 
benefit
 
expenses
 
and
 
the
 
net
 
interest
 
in
financial
 
expenses.
 
Also
 
,
 
gains
 
and
 
losses
 
from
 
fair
 
valuation
 
and
 
disposal
 
and
 
impairments
 
of
 
other
 
shares
are
 
included
 
in
 
financial
 
income
 
and
 
expenses.
 
Changes
 
in
 
the
 
fair
 
value
 
of
 
interest
 
rate
 
hedges
 
against
 
Wärtsilä
 
Group’s
 
loan
 
portfolio
 
are
 
immediately
recognised
 
in
 
financial
 
income
 
or
 
expenses
 
in
 
the
 
statement
 
of
 
income.
 
The
 
fair
 
value
 
of
 
interest
 
rate
 
swaps
 
is
calculated
 
by
 
discounting
 
the
 
future
 
cash
 
flows.
Exchange
 
rate
 
differences
 
related
 
to
 
financial
 
assets
 
and
 
financial
 
liabilities
 
are
 
reported
 
as
 
financial
 
items
 
in
the
 
statement
 
of
 
income,
 
except
 
exchange
 
rate
 
differences
 
related
 
to
 
non
 
-current
 
debt
 
that
 
is
 
part
 
of
 
the
Group's
 
net
 
investment
 
in
 
a
 
subsidiary.
 
MEUR
2020
2019
Interest
 
income
 
on
 
loans
 
and
 
receivables
3
1
Interest
 
income
 
on
 
financial
 
assets
 
at
 
fair
 
value
 
through
 
the
 
statement
 
of
 
income
12
23
Interest
 
income
 
on
 
investments
 
at
 
amortised
 
cost
1
2
Other
 
financial
 
income
0
1
Total
 
financial
 
income
16
27
Interest
 
expenses
 
on
 
financial
 
liabilities
 
recognised
 
at
 
amortised
 
cost
-9
-10
Interest
 
expenses
 
on
 
lease
 
liabilities
 
recognised
 
at
 
amortised
 
cost
-4
-5
Interest
 
expenses
 
on
 
financial
 
liabilities
 
at
 
fair
 
value
 
through
 
the
 
statement
 
of
income
-21
-36
Net
 
interest
 
from
 
defined
 
benefit
 
plans
-2
-3
Changes
 
in
 
fair
 
values
 
of
 
financial
 
assets/liabilities
 
at
 
fair
 
value
 
through
 
the
statement
 
of
 
income
0
-5
Exchange
 
rate
 
differences*
-16
-10
Fee
 
expenses
-2
-2
Other
 
financial
 
expenses
-4
-4
Total
 
financial
 
expenses
-59
-74
Total
-43
-47
 
*
 
In
 
2020,
 
the
 
result
 
from
 
the
 
ineffective
 
portion
 
of
 
cash
 
flow
 
hedges
 
related
 
to
 
cancelled
 
projects
 
,
 
EUR
 
-1
million
 
(-5),
 
and
 
exchange
 
rate
 
differences
 
from
 
unhedged
 
internal
 
loans,
 
EUR
 
-10
 
million
 
(
 
-8)
 
were
 
included
 
in
exchange
 
rate
 
differences.
 
5.2.
 
FINANCIAL
 
ASSETS
 
AND
 
LIABILITIES
 
BY
 
MEASUREMENT
 
CATEGORY
Accounting
 
principles
Financial
 
instruments
Financial
 
instruments
 
are
 
initially
 
recognised
 
at
 
fair
 
value.
 
Subsequently,
 
financial
 
assets
 
are
 
classified
 
and
measured
 
at
 
amortised
 
cost,
 
at
 
fair
 
value
 
through
 
statement
 
of
 
income,
 
or
 
at
 
fair
 
value
 
through
 
other
comprehensive
 
income.
 
The
 
classification
 
of
 
financial
 
assets
 
is
 
defined
 
by
 
the
 
business
 
model
 
and
 
the
 
cash
flow
 
characteristics
 
of
 
the
 
asset.
 
Financial
 
liabilities
 
are
 
subsequently
 
classified
 
and
 
measured
 
at
 
amortised
cost
 
or
 
at
 
fair
 
value
 
through
 
statement
 
of
 
income.
Financial
 
instruments
 
are
 
classified
 
as
 
current
 
financial
 
instruments
 
unless
 
the
 
maturity
 
of
 
the
 
financial
instrument
 
exceeds
 
12
 
months
 
from
 
the
 
reporting
 
date.
 
Financial
 
instruments
 
are
 
derecognised
 
only
 
when
the
 
financial
 
instrument
 
is
 
extinguished,
 
or
 
when
 
the
 
contractually
 
specified
 
right
 
or
 
obligation
 
is
 
discharged,
cancelled,
 
or
 
when
 
it
 
expires.
 
The
 
status
 
of
 
financial
 
instruments
 
is
 
evaluated
 
at
 
each
 
reporting
 
date.
Financial
 
instruments
 
at
 
amortised
 
cost
Financial
 
assets
Financial
 
assets
 
measured
 
at
 
amortised
 
cost
 
include
 
cash
 
and
 
cash
 
equivalents,
 
investments
 
in
 
debt
instruments,
 
commercial
 
papers,
 
trade
 
receivables
 
and
 
other
 
receivables.
 
The
 
assets
 
are
 
initially
recognised
 
at
 
fair
 
value
 
less
 
the
 
transaction
 
costs,
 
and
 
are
 
subsequently
 
measured
 
at
 
amortised
 
cost
 
by
using
 
the
 
effective
 
interest
 
rate
 
method.
 
These
 
assets
 
are
 
held
 
for
 
collecting
 
contractual
 
cash
 
flows,
 
which
are
 
solely
 
payments
 
of
 
principal
 
and
 
interest.
 
Interest
 
income
 
is
 
recognised
 
as
 
financial
 
income
 
in
 
the
statement
 
of
 
income.
The
 
Group
 
applies
 
the
 
simplified
 
method
 
in
 
IFRS
 
9
 
for
 
the
 
expected
 
credit
 
losses
 
from
 
its
 
trade
 
receivables.
This
 
requires
 
expected
 
lifetime
 
credit
 
losses
 
to
 
be
 
recognised
 
from
 
the
 
initial
 
recognition
 
of
 
the
 
receivables,
as
 
defined
 
in
 
Note
 
4.2.
 
Trade
 
receivables
 
and
 
contract
 
assets
 
and
 
liabilities.
Financial
 
Liabilities
Financial
 
liabilities
 
measured
 
at
 
amortised
 
cost
 
include
 
trade
 
and
 
other
 
payables,
 
loans,
 
and
 
borrowings.
These
 
liabilities
 
are
 
initially
 
recognised
 
at
 
fair
 
value
 
less
 
the
 
transaction
 
costs
 
related
 
to
 
the
 
acquisition
 
of
these
 
liabilities.
 
The
 
liabilities
 
are
 
subsequently
 
classified
 
and
 
measured
 
using
 
the
 
effective
 
interest
 
rate
method
 
by
 
amortising
 
the
 
discounted
 
interest
 
payments
 
over
 
the
 
maturity
 
of
 
the
 
liabilities.
 
Interest
 
expense
is
 
recognised
 
in
 
the
 
financial
 
expense
 
in
 
the
 
statement
 
of
 
income.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
 
 
Financial
 
in
 
struments
 
at
 
fair
 
value
 
through
 
the
 
statement
 
of
 
income
Financial
 
assets
Financial
 
assets
 
measured
 
at
 
fair
 
value
 
through
 
the
 
statement
 
of
 
income
 
include
 
other
 
financial
investments,
 
other
 
short-term
 
cash
 
investments
 
and
 
derivatives,
 
which
 
are
 
not
 
included
 
in
 
the
 
hedge
accounting.
 
These
 
financial
 
investments
 
include
 
Wärtsilä’s
 
investments
 
in
 
other
 
companies
 
(both
 
listed
 
and
unlisted
 
shares).
Changes
 
in
 
fair
 
value
 
and
 
gains
 
and
 
losses
 
at
 
derecognition
 
of
 
these
 
financial
 
assets
 
are
 
recognised
 
in
 
the
statement
 
of
 
income.
Gains
 
and
 
losses
 
from
 
fair
 
valuation
 
and
 
the
 
disposal
 
and
 
impairments
 
of
 
shares
 
that
 
are
 
attributable
 
to
operating
 
activities
 
are
 
included
 
in
 
operating
 
income,
 
while
 
gains
 
and
 
losses
 
from
 
fair
 
valuation
 
and
 
the
disposal
 
and
 
impairments
 
of
 
other
 
shares
 
are
 
included
 
in
 
financial
 
income
 
and
 
expenses.
Financial
 
liabilities
Financial
 
liabilities
 
recognised
 
at
 
fair
 
value
 
through
 
the
 
statement
 
of
 
income
 
include
 
derivatives
 
that
 
are
 
not
eligible
 
for
 
hedge
 
accounting.
Changes
 
in
 
fair
 
value
 
and
 
gains
 
and
 
losses
 
at
 
derecognition
 
of
 
these
 
financial
 
assets
 
are
 
recognised
 
in
 
the
statement
 
of
 
income.
Financial
 
Instruments
 
at
 
fair
 
value
 
through
 
other
 
comprehensive
 
income
Financial
 
assets
 
and
 
liabilities
 
recognised
 
at
 
fair
 
value
 
through
 
other
 
comprehensive
 
income
 
include
 
the
effective
 
portion
 
of
 
derivates
 
eligible
 
for
 
hedge
 
accounting.
Information
 
on
 
measurement
 
categories
 
of
 
derivatives
 
and
 
financial
 
instruments
 
in
 
hedge
 
accounting
 
are
presented
 
in
 
Note
 
5.7.
 
Derivative
 
financial
 
instruments.
 
2020
 
MEUR
Measured
at
 
amortised
cost
At
 
fair
 
value
 
through
 
the
 
statement
 
of
 
income
At
 
fair
value
through
other
compre
 
-
hensive
income
Carrying
 
amounts
 
of
 
the
 
statement
 
of
 
financial
 
position
 
items
Fair
 
value
Non
 
-current
 
financial
 
assets
Interest
 
-bearing
 
investments
1
1
1
Trade
 
receivables
30
30
30
Derivatives
1
1
1
Other
 
investments
19
19
19
Other
 
receivables
2
2
2
Current
 
financial
 
assets
Trade
 
receivables
920
920
920
Trade
 
receivables
 
for
 
sale
2
2
2
Derivatives
15
22
37
37
Other
 
financial
 
receivables
4
4
4
Cash
 
and
 
cash
 
equivalents
652*
265
919
919
Carrying
 
amount
 
by
 
measurement
category
1,608
302
22
1,934
1,934
Non
 
-current
 
financial
 
liabilities
Interest
 
-bearing
 
debt
1,129
1,129
1,139
Derivatives
19
6
25
25
Current
 
financial
 
liabilities
Interest
 
-bearing
 
debt
198
198
198
Trade
 
payables
411
411
411
Derivatives
1
2
3
3
Other
 
financial
 
liabilities
4
4
4
Carrying
 
amount
 
by
 
measurement
category
1,743
20
8
1,770
1,780
 
*
 
In
 
addition,
 
the
 
Group
 
has
 
cash
 
and
 
cash
 
equivalents
 
measured
 
at
 
amortised
 
cost
 
of
 
EUR
 
14
 
million
 
related
to
 
assets
 
held
 
for
 
sale.
 
2019
 
MEUR
Measured
at
 
amortised
cost
At
 
fair
 
value
 
through
 
the
 
statement
 
of
 
income
At
 
fair
value
through
other
compre
 
-
hensive
income
Carrying
 
amounts
 
of
 
the
 
statement
 
of
 
financial
 
position
 
items
Fair
 
value
Non
 
-current
 
financial
 
assets
Interest
 
-bearing
 
investments
1
1
1
Trade
 
receivables
19
19
19
Derivatives
5
5
5
Other
 
investments
18
18
18
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
 
 
Other
 
receivables
2
2
2
Current
 
financial
 
assets
Trade
 
receivables
1,232
1,232
1,232
Trade
 
receivables
 
for
 
sale
4
4
4
Derivatives
5
14
18
18
Other
 
financial
 
receivables
6
6
6
Cash
 
and
 
cash
 
equivalents
343*
15
358
358
Carrying
 
amount
 
by
 
measurement
category
1,600
48
14
1,662
1,662
Non
 
-current
 
financial
 
liabilities
Interest
 
-bearing
 
debt
997
997
1,005
Derivatives
14
2
16
16
Current
 
financial
 
liabilities
Interest
 
-bearing
 
debt
99
99
99
Trade
 
payables
624
624
624
Derivatives
1
6
7
7
Other
 
financial
 
liabilities
4
4
4
Carrying
 
amount
 
by
 
measurement
category
1,724
15
8
1,747
1,756
 
*
 
In
 
addition,
 
the
 
Group
 
has
 
cash
 
and
 
cash
 
equivalents
 
measured
 
at
 
amortised
 
cost
 
of
 
EUR
 
11
 
million
 
related
to
 
assets
 
held
 
for
 
sale.
 
Fair
 
value
 
hierarchy
Accounting
 
principles
Wärtsilä
 
uses
 
the
 
following
 
categorisation
 
for
 
determining
 
and
 
disclosing
 
the
 
fair
 
value
 
of
 
financial
 
instruments
by
 
valuation
 
technique:
Level
 
1:
 
The
 
quoted
 
prices
 
for
 
the
 
financial
 
instruments
 
are
 
directly
 
and
 
regularly
 
available
 
on
 
active
 
publicly
traded
 
markets
 
or
 
other
 
publicly
 
available
 
sources.
Level
 
2:
 
The
 
prices
 
for
 
the
 
financial
 
instruments
 
are
 
determined
 
by
 
using
 
a
 
valuation
 
method
 
for
 
which
 
the
 
input
data
 
is
 
directly
 
or
 
indirectly
 
available
 
on
 
a
 
publicly
 
traded
 
markets
 
or
 
other
 
publicly
 
available
 
sources.
Level
 
3:
 
The
 
financial
 
instruments
 
are
 
categorised
 
into
 
level
 
3
 
fair
 
value
 
if
 
the
 
prices
 
for
 
the
 
inputs
 
of
 
the
valuation
 
method
 
are
 
not
 
publicly
 
available,
 
and
 
when
 
the
 
financial
 
instruments
 
are
 
measured
 
using
 
an
independent
 
valuation
 
method.
 
 
Specific
 
valuation
 
techniques
 
used
 
to
 
value
 
financial
 
instruments
 
include:
 
the
 
fair
 
value
 
of
 
forward
 
foreign
 
exchange
 
contracts
 
is
 
determined
 
by
 
using
 
forward
 
rates
 
at
 
the
 
closing
 
date
 
the
 
fair
 
value
 
of
 
interest
 
rate
 
swaps
 
is
 
calculated
 
as
 
being
 
the
 
present
 
value
 
of
 
the
 
estimated
 
future
 
cash
 
flows
based
 
on
 
observable
 
yield
 
curves
 
the
 
use
 
of
 
quoted
 
market
 
prices
 
or
 
dealer
 
quotes
 
for
 
similar
 
instruments
 
2020
2019
MEUR
Level
 
2
Level
 
3
Level
 
2
Level
 
3
Financial
 
assets
Other
 
investments
19
18
Interest
 
-bearing
 
investments,
 
non-current
1
1
Other
 
receivables,
 
non-current
2
2
Derivatives
37
24
Financial
 
liabilities
Interest
 
-bearing
 
debt,
 
non-current*
1,139
1,005
Derivatives
27
23
 
*
 
Measured
 
at
 
amortised
 
cost
 
in
 
the
 
statement
 
of
 
financial
 
position.
 
Additional
 
information
 
on
 
financial
 
liabilities
 
is
 
presented
 
in
 
Note
 
5.6.
 
Maturity
 
analysis
 
of
 
financial
 
liabilities.
 
Other
 
investments
Other
 
investments
 
include
 
unlisted
 
shares
 
carried
 
at
 
fair
 
value.
 
These
 
investments
 
are
 
valued
 
using
 
certain
DCF
 
models
 
where
 
critical
 
assumptions
 
relate
 
to
 
WACC
 
level
 
and
 
expected
 
cash
 
flows
 
from
 
future
 
dividends.
However,
 
the
 
results
 
from
 
different
 
scenarios
 
vary
 
a
 
lot.
 
The
 
management
 
therefore
 
considers
 
that
 
the
valuation
 
at
 
amortised
 
cost
 
is
 
the
 
best
 
estimate
 
of
 
fair
 
value.
 
MEUR
2020
2019
Carrying
 
amount
 
on
 
1
 
January
18
16
Acquired
 
shares
1
2
Carrying
 
amount
 
on
 
31
 
December
19
18
 
In
 
2020,
 
the
 
cost
 
for
 
other
 
unlisted
 
shares
 
(level
 
3)
 
was
 
EUR
 
19
 
million
 
(18),
 
and
 
the
 
market
 
value
 
of
 
them
 
was
EUR
 
19
 
million
 
(18).
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
 
 
 
5.3.
 
CASH
 
AND
 
CASH
 
EQUIVALENTS
Accounting
 
principles
Cash
 
and
 
cash
 
equivalents
 
comprise
 
cash
 
in
 
hand,
 
deposits
 
held
 
at
 
cal
 
l
 
with
 
banks,
 
and
 
other
 
short
 
-term
cash
 
investments.
 
Other
 
short-term
 
cash
 
investments
 
are
 
highly
 
liquid
 
investments
 
that
 
are
 
subject
 
to
 
only
minor
 
fluctuations
 
in
 
value,
 
and
 
which
 
have
 
a
 
maturity
 
of
 
up
 
to
 
three
 
months
 
on
 
the
 
date
 
of
 
acquisition.
Cash
 
in
 
hand
 
and
 
deposits
 
held
 
at
 
call
 
are
 
presented
 
at
 
amortised
 
cost.
 
Other
 
cash
 
investments
 
are
 
mainly
measured
 
at
 
fair
 
value,
 
except
 
for
 
commercial
 
paper
 
investments
 
that
 
are
 
presented
 
at
 
amortised
 
cost.
Credit
 
accounts
 
related
 
to
 
Group
 
cash
 
pool
 
accounts
 
are
 
included
 
in
 
current
 
financial
 
liabilities.
 
MEUR
2020
2019
Cash
 
and
 
bank
 
balances*
628
343
Cash
 
equivalents
290
15
Total
919
358
 
*
 
EUR
 
175
 
million
 
(171)
 
of
 
cash
 
and
 
bank
 
balances
 
relate
 
to
 
cash
 
in
 
countries
 
where
 
repatriation
 
is
 
limited
 
due
to
 
local
 
regulation
 
and,
 
consequently
 
,
 
the
 
cash
 
is
 
not
 
immediately
 
available
 
to
 
the
 
parent
 
company.
 
In
 
addition,
 
the
 
Group
 
has
 
cash
 
and
 
cash
 
equivalents
 
of
 
EUR
 
14
 
million
 
(11)
 
related
 
to
 
assets
 
held
 
for
 
sale.
 
5.4.
 
NET
 
DEBT
 
RECONCILIATION
Net
 
interest
 
-bearing
 
debt
 
MEUR
2020
2019
Interest
 
-bearing
 
debt,
 
non-current
1,005
851
Lease
 
liabilities,
 
non-current
124
146
Interest
 
-bearing
 
debt,
 
current
156
58
Lease
 
liabilities,
 
current
42
42
Total
 
interest
 
-bearing
 
liabilities
1,327
1,096
Interest
 
-bearing
 
receivables
-1
-1
Cash
 
and
 
cash
 
equivalents
-919
-358
Cash
 
and
 
cash
 
equivalents
 
pertaining
 
to
 
assets
 
held
 
for
 
sale
-14
-11
Total
 
interest
 
-bearing
 
assets
-933
-370
Total
 
net
 
interest
 
-bearing
 
debt
394
726
 
Net
 
debt
 
reconciliation
 
2020
MEUR
Carrying
 
amount
 
on
 
1
 
January
2020
Cash
flows
Changes
in
exchange
rates
Other
non
 
-cash
movements
Acquistions
and
disposals
Carrying
 
amount
 
on
 
31
December
2020
Interest
 
-bearing
 
debt,
 
non-current
851
155
1,005
Interest
 
-bearing
 
debt,
 
current
58
121
-14
-8
156
Lease
 
liabilities
188
-49
-6
34
-1
166
Interest
 
-bearing
 
receivables
-1
1
-1
Cash
 
and
 
cash
 
equivalents*
-369
-601
22
16
-932
Net
 
debt
726
-374
3
34
8
394
 
*
 
Includes
 
cash
 
and
 
cash
 
equivalents
 
pertaining
 
to
 
assets
 
held
 
for
 
sale.
 
2019
MEUR
Carrying
 
amount
 
on
 
1
 
January
2019
Cash
flows
Changes
in
exchange
rates
Other
non
 
-cash
movements
Carrying
 
amount
 
on
 
31
December
2019
Interest
 
-bearing
 
debt,
 
non-current
746
104
851
Interest
 
-bearing
 
debt,
 
current
73
-11
-5
58
Lease
 
liabilities
215
-52
26
188
Interest
 
-bearing
 
receivables
-3
2
-1
Cash
 
and
 
cash
 
equivalents
-487
119
-369*
Net
 
debt
545
162
-5
26
726
 
*
 
Includes
 
cash
 
and
 
cash
 
equivalents
 
pertaining
 
to
 
assets
 
held
 
for
 
sale.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
 
 
 
5.5.
 
EQUITY
Equity
 
consists
 
of
 
share
 
capital,
 
share
 
premium,
 
translation
 
differences,
 
fair
 
value
 
reserve,
 
remeasurements
 
of
defined
 
benefit
 
liabilities
 
and
 
retained
 
earnings.
 
Share
 
capital
 
and
 
number
 
of
 
shares
 
MEUR
Share
 
capital
Number
 
of
 
shares
and
 
votes
Share
capital
Share
premium
Total
1
 
January
 
2019
591,723,390
336
61
397
31
 
December
 
2019
591,723,390
336
61
397
31
 
December
 
2020
591,723,390
336
61
397
 
Wärtsilä's
 
share
 
does
 
not
 
have
 
a
 
nominal
 
value.
 
Wärtsilä
 
has
 
one
 
series
 
of
 
shares.
 
Each
 
share
 
is
 
assigned
 
one
vote
 
in
 
the
 
Annual
 
General
 
Meeting
 
and
 
has
 
an
 
equal
 
right
 
to
 
dividend.
 
Share
 
Capital
The
 
subscription
 
price
 
of
 
a
 
share
 
received
 
by
 
the
 
company
 
in
 
connection
 
with
 
share
 
issues
 
is
 
credited
 
to
 
the
share
 
capital,
 
unless
 
it
 
is
 
provided
 
in
 
the
 
share
 
issue
 
decision
 
that
 
a
 
part
 
of
 
the
 
subscription
 
price
 
is
 
to
 
be
recorded
 
in
 
the
 
fund
 
for
 
invested
 
non-
 
restricted
 
equity.
 
Share
 
Premium
Share
 
premium
 
is
 
restricted
 
equity.
 
It
 
may
 
be
 
reduced
 
in
 
accordance
 
with
 
the
 
rules
 
applying
 
to
 
decreasing
share
 
capital
 
in
 
accordance
 
with
 
the
 
Finnish
 
Limited
 
Liability
 
Companies
 
Act.
 
It
 
can
 
also
 
be
 
used
 
to
 
increase
the
 
share
 
capital.
 
Translation
 
differences
Translating
 
foreign
 
subsidiaries'
 
financial
 
statements
 
by
 
using
 
different
 
exchange
 
rates
 
in
 
the
 
statement
 
of
comprehensive
 
income
 
and
 
in
 
the
 
statement
 
of
 
financial
 
position
 
causes
 
translation
 
differences,
 
which
 
are
recognised
 
in
 
equity.
 
Translation
 
differences
 
of
 
foreign
 
subsidiaries’
 
acquisition
 
cost
 
eliminations
 
and
 
pos
 
t-
acquisition
 
gains
 
and
 
losses
 
are
 
also
 
presented
 
in
 
equity.
 
Also
 
,
 
translation
 
differences
 
arising
 
from
 
subsidiary
net
 
investment
 
s
 
and
 
non-current
 
subsidiary
 
loans
 
without
 
agreed
 
settlement
 
dates
 
are
 
presented
 
in
 
equity.
 
The
change
 
in
 
translation
 
differences
 
is
 
recognised
 
in
 
other
 
comprehensive
 
income.
 
Fair
 
value
 
reserve
Fair
 
value
 
reserve
 
includes
 
the
 
changes
 
in
 
fair
 
value
 
of
 
derivative
 
financial
 
instruments,
 
if
 
the
 
hedging
 
is
effective
 
and
 
eligible
 
for
 
hedge
 
accounting.
 
The
 
changes
 
in
 
items
 
included
 
in
 
fair
 
value
 
reserve
 
are
 
recognised
in
 
other
 
comprehensive
 
income.
 
In
 
2020,
 
EUR
 
-4
 
million
 
(4)
 
of
 
fair
 
value
 
adjustments
 
related
 
to
 
cash
 
flow
 
hedges
 
was
 
recognised
 
in
 
equity.
EUR
 
6
 
million
 
(19)
 
of
 
the
 
fair
 
value
 
adjustments
 
was
 
transferred
 
from
 
equity
 
to
 
the
 
statement
 
of
 
income
 
as
 
net
sales
 
or
 
operating
 
expenses
 
during
 
2020.
 
MEUR
Ca
 
sh
 
flow
hedges
Fair
 
value
 
reserve
 
on
 
1
 
January
 
2019
-39
Taxes
 
related
 
to
 
fair
 
value
 
adjustments
8
Fair
 
value
 
reserve
 
on
 
1
 
January
 
2019
-31
Transferred
 
to
 
the
 
statement
 
of
 
income,
 
net
 
of
 
taxes
16
Fair
 
value
 
adjustments
4
Fair
 
value
 
reserve
 
on
 
31
 
December
 
2019
-11
Transferred
 
to
 
the
 
statement
 
of
 
income,
 
net
 
of
 
taxes
5
Fair
 
value
 
adjustments
-4
Taxes
 
related
 
to
 
fair
 
value
 
adjustments
1
Fair
 
value
 
reserve
 
on
 
31
 
December
 
2020
-9
 
Parent
 
company's
 
distributable
 
funds
Accounting
 
principles
The
 
dividend
 
proposed
 
by
 
the
 
Board
 
of
 
Directors
 
is
 
deducted
 
from
 
distributable
 
equity
 
when
 
approved
 
by
 
the
company’s
 
Annual
 
General
 
Meeting.
 
Unpaid
 
dividends
 
are
 
presented
 
as
 
liability
 
in
 
the
 
consolidated
 
financial
statements.
 
After
 
the
 
balance
 
sheet
 
date,
 
the
 
Board
 
of
 
Directors
 
proposed
 
that
 
a
 
dividend
 
of
 
EUR
 
0.20
 
per
 
share
 
be
 
paid
for
 
the
 
financial
 
period
 
2020,
 
the
 
total
 
dividend
 
payable
 
being
 
EUR
 
118
 
million.
 
The
 
remaining
 
part
 
of
 
the
retained
 
profits
 
will
 
be
 
carried
 
further
 
in
 
the
 
unrestricted
 
equity.
 
For
 
the
 
profit
 
for
 
the
 
financial
 
period
 
2019,
 
a
dividend
 
of
 
EUR
 
0.48
 
per
 
share
 
was
 
distributed,
 
totalling
 
EUR
 
284
 
million,
 
and
 
the
 
rest
 
of
 
the
 
retained
 
profits
were
 
carried
 
further
 
in
 
the
 
unrestricted
 
equity.
 
Additional
 
information
 
on
 
equity
 
is
 
presented
 
in
 
Notes
 
to
 
the
 
parent
 
company
 
financial
 
statements,
 
in
 
Note
 
10.
Shareholders'
 
equity.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
 
 
 
5.6.
 
MATURITY
 
ANALYSIS
 
OF
 
FINANCIAL
 
LIABILITIES
 
2020
Current
Non
 
-current
MEUR
<
 
1
 
year
1–3
 
years
3–5
 
years
>
 
5
 
years
Total
Loans
 
from
 
other
 
financial
 
institutions*
155
481
232
292
1,160
Lease
 
liabilities
45
59
35
51
190
Other
 
interest
 
-bearing
 
debt*
1
0
0
0
1
Trade
 
payables
411
411
Derivatives**
13
5
2
7
27
Other
 
liabilities
4
4
Total
629
545
270
350
1,794
*
 
Estimated
 
interest
 
expenses,
 
total
8
11
6
2
28
Estimated
 
contractual
 
cash
 
flows
637
557
276
353
1,822
 
2019
Current
Non
 
-current
MEUR
<
 
1
 
year
1–3
 
years
3–5
 
years
>
 
5
 
years
Total
Loans
 
from
 
other
 
financial
 
institutions*
56
263
258
328
906
Lease
 
liabilities
48
65
37
64
215
Other
 
interest
 
-bearing
 
debt*
2
2
Trade
 
payables
624
624
Derivatives**
7
10
5
2
23
Other
 
liabilities
4
4
Total
741
339
301
392
1,774
*
 
Estimated
 
interest
 
expenses,
 
total
8
12
8
3
31
Estimated
 
contractual
 
cash
 
flows
748
351
309
395
1,804
 
**
 
Valuation
 
for
 
derivatives
 
with
 
negative
 
market
 
value
 
by
 
maturity
 
date.
 
Nominal
 
contractual
 
amounts
 
are
presented
 
in
 
Note
 
5.7.
 
Derivative
 
financial
 
instruments.
 
Interest
 
expenses
 
for
 
long-term
 
loans
 
are
 
calculated
 
by
 
using
 
the
 
average
 
interest
 
rate
 
prevailing
 
on
 
31
December
 
2020.
 
Fair
 
values
 
of
 
financial
 
liabilities
 
are
 
presented
 
in
 
Note
 
5.2.
 
Financial
 
assets
 
and
 
liabilities
 
by
 
measurement
category.
 
Information
 
on
 
measurement
 
categories
 
of
 
financial
 
liabilities
 
in
 
Note
 
5.2.
 
Financial
 
assets
 
and
liabilities
 
by
 
measurement
 
category.
 
5.7.
 
DERIVATIVE
 
FINANCIAL
 
INSTRUMENTS
Accounting
 
principles
Derivatives
 
and
 
hedge
 
accounting
Derivatives
 
are
 
initially
 
recognised
 
on
 
the
 
statement
 
of
 
financial
 
position
at
 
fair
 
value
 
and
 
are
 
subsequently
classified
 
and
 
measured
 
at
 
their
 
fair
 
value
 
at
 
the
 
end
 
of
 
each
 
reporting
 
period.
 
Gains
 
and
 
losses
 
from
 
the
fair
 
value
 
measurement
 
are
 
recognised
 
in
 
the
 
statement
 
of
 
income
 
as
 
determined
 
by
 
the
 
purpose
 
of
 
the
derivatives.
Hedge
 
accounting
Wärtsilä
 
hedges
 
its
 
sales
 
and
 
purchases
 
in
 
foreign
 
currencies
 
with
 
foreign
 
exchange
 
forwards
 
or
 
currency
options,
 
and
 
Wärtsilä
 
applies
 
hedge
 
accounting
 
according
 
to
 
IFRS
 
9
 
to
 
the
 
majority
 
of
 
these
 
foreign
exchange
 
forwards.
 
Forward
 
points
 
are
 
excluded
 
from
 
the
 
hedge
 
relationship,
 
and
 
in
 
case
 
of
 
a
 
hedge
 
being
fully
 
or
 
partially
 
ineffective,
 
the
 
ineffective
 
portion
 
is
 
immediately
 
recognised
 
in
 
the
 
financial
 
items
 
for
 
the
reporting
 
period.
 
Wärtsilä
 
may
 
also
 
apply
 
c
 
ash
 
flow
 
hedging
 
to
 
some
 
of
 
its
 
interest
 
rate
 
derivatives.
The
 
Group
 
documents
 
the
 
relationship
 
between
 
each
 
hedging
 
instrument
 
and
 
the
 
hedged
 
item
 
upon
entering
 
into
 
a
 
hedging
 
arrangement,
 
along
 
with
 
the
 
risk
 
management
 
objective
 
and
 
the
 
strategy
 
applied.
Through
 
this
 
process,
 
the
 
hedging
 
instrument
 
is
 
linked
 
to
 
the
 
relevant
 
assets
 
and
 
liabilities,
 
projected
business
 
transactions
 
,
 
or
 
binding
 
contracts.
Wärtsilä
 
designates
 
its
 
hedge
 
relationships
 
of
 
foreign
 
exchange
 
hedges
 
as
 
either
 
hedges
 
of
 
highly
 
probable
forecast
 
transactions
 
or
 
firm
 
commitments.
The
 
Group
 
uses
 
a
 
hedge
 
designation
 
for
 
foreign
 
exchange
hedging,
 
where
 
critical
 
terms
 
match
 
or
 
are
closely
 
aligned
 
between
 
the
 
hedging
 
instrument
 
and
 
the
 
hedged
 
item.
 
The
 
hedge
 
ratio
 
is
 
typically
 
100%.
Since
 
underlying
 
risks
 
match,
 
hedging
 
instruments
 
are
 
considered
 
to
 
offset
 
any
 
changes
 
related
 
to
 
the
hedged
 
transactions.
 
Wärtsilä
 
recognises
 
that
 
potential
 
sources
 
of
 
ineffectiveness
 
arise
 
when
 
hedged
transactions
 
are
 
delayed
 
or
 
cancelled.
 
However,
 
Wärtsilä
 
applies
 
a
 
roll-forward
 
strategy
 
where
 
derivatives
are
 
roll
 
-forwarded
 
or
 
terminated
 
early
 
to
 
match
 
these
 
underlying
 
transactions.
 
Hedge
 
effectiveness
requirements
 
are
 
assessed
 
in
 
accordance
 
with
 
IFRS
 
9
 
requirements
 
,
 
including
 
requirements
 
for
 
economic
relationship,
 
credit
 
risk
 
and
 
hedge
 
ratio.
External
 
hedges
 
are
 
typically
 
made
 
for
 
short
 
maturities
 
(up
 
to
 
1
 
year)
 
and
 
only
 
high
 
credit
 
quality
 
(A-
minimum
 
rating
 
requirement)
 
counterparties
 
are
 
utilised
 
.
 
Counterparty
 
credit
 
risk
 
is
 
expected
 
to
 
have
minimal
 
effect
 
on
 
hedge
 
valuations.
 
Due
 
to
 
some
 
underlying
 
hedged
 
cash
 
flows
 
having
 
longer
 
maturities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
 
 
than
 
related
 
hedges,
 
the
 
changes
 
in
 
present
 
value
 
of
 
the
 
hedge
 
and
 
the
 
underlying
 
cash
 
flow
 
do
 
not
 
always
fully
 
offset
 
each
 
other
 
during
 
the
 
lifetime
 
of
 
a
 
hedge.
 
This
 
ineffectiveness
 
is
 
calculated
 
on
 
a
 
quarterly
 
basis
and
 
booked
 
in
 
financial
 
items
 
at
 
Group
 
level.
Cash
 
flow
 
hedge
Changes
 
in
 
the
 
fair
 
value
 
of
 
derivative
 
contracts
 
designated
 
and
 
qualifying
 
as
 
cash
 
flow
 
hedges
 
are
recognised
 
in
 
other
 
comprehensive
 
income
 
and
 
presented
 
in
 
the
 
fair
 
value
 
reserve
 
in
 
equity,
 
provided
 
that
the
 
hedging
 
is
 
effective.
In
 
the
 
case
 
of
 
foreign
 
exchange
 
forwards,
 
the
 
spot
 
element
 
is
 
included
 
for
 
the
hedging
 
relationship
 
where
 
forward
 
points
 
have
 
been
 
excluded
 
from
 
the
 
hedge
 
designation.
Any
 
gain
 
or
loss
 
in
 
the
 
fair
 
value
 
reserve
 
related
 
to
 
derivatives
 
accumulated
 
through
 
other
 
comprehensive
 
income
 
is
reported
 
in
 
the
 
statement
 
of
 
income
 
in
 
the
 
same
 
period
 
as
 
any
 
transactions
 
relating
 
to
 
the
 
hedged
obligations
 
or
 
estimates,
 
for
 
example
 
as
 
an
 
adjustment
 
to
 
net
 
sales
 
or
 
material
 
and
 
services.
 
The
 
ineffective
portion
 
is
 
immediately
 
recognised
 
in
 
the
 
financial
 
items
 
in
 
the
 
statement
 
of
 
income
 
for
 
the
 
reporting
 
period.
Changes
 
in
 
fair
 
value
 
of
 
foreign
 
exchange
 
derivatives
 
due
 
to
 
interest
 
rate
 
differences
 
are
 
recognised
 
in
 
the
statement
 
of
 
income.
More
 
information
 
on
 
fair
 
value
 
adjustments
 
related
 
to
 
cash
 
flow
 
hedges
 
is
 
presented
 
in
 
Note
 
5.5.
 
Equity,
and
 
more
 
information
 
on
 
the
 
ineffective
 
portion
 
of
 
cash
 
flow
 
hedges
 
is
 
presented
 
in
 
Note
 
5.1.
 
Financial
income
 
and
 
expenses.
 
The
 
Group
 
applies
 
hedge
 
accounting
 
to
 
the
 
majority
 
of
 
its
 
foreign
 
currency
 
forward
 
contracts.
 
The
 
open
 
operative
 
currency
 
positions
 
including
 
financing
 
are
 
hedged
 
by
 
using
 
derivative
 
financial
 
instruments
according
 
to
 
the
 
table
 
below.
 
Foreign
 
exchange
 
forwards
 
2020
2019
MEUR
Net
 
against
fixed
sales
and
purchase
contracts
Against
net
loans
Net
 
against
fixed
sales
and
purchase
contracts
Against
net
loans
Currency
 
forwards
USD
292
287
614
356
NOK
396
1
451
41
CHF
22
61
31
103
CNY
15
12
107
13
AUD
47
1
52
MXN
46
5
47
2
SGD
11
8
31
SEK
25
1
26
CAD
20
11
13
11
Other
 
currencies*
120
1
67
7
Total
 
net
 
amount
 
of
 
currency
 
derivatives
936
437
1,364
616
 
*
 
Other
 
currencies
 
do
 
not
 
include
 
any
 
material
 
single
 
currencies.
 
Net
 
loans
 
include
 
non-euro
 
intragroup
 
loans
 
and
 
deposits
 
given
 
by
 
the
 
parent
 
company.
 
IFRS
 
hedge
 
accounting
 
has
 
been
 
applied
 
to
 
EUR
 
1,861
 
million
 
(2,448)
 
currency
 
forwards.
 
A
 
5%
 
change
 
in
 
the
exchange
 
rates
 
would
 
cause
 
from
 
these
 
currency
 
forwards
 
an
 
approximately
 
EUR
 
45
 
million
 
(74)
 
impact
 
on
 
the
equity.
 
As
 
all
 
material
 
fixed
 
sales
 
and
 
purchase
 
contracts
 
are
 
hedged,
 
the
 
profit
 
and
 
loss
 
sensitivity
 
of
 
foreign
exchange
 
from
 
operations
 
(excluding
 
internal
 
financing)
 
is
 
considered
 
minimal.
 
2020
2019
MEUR
Gross
amount
Net
amount
Equity
impact
Gross
amount
Net
amount
Equity
impact
Both
 
legs
 
of
 
currency
 
forwards
under
 
hedge
 
accounting*
EUR
1,424
123
6
1,772
83
USD
1,077
295
15
1,332
640
32
NOK
803
248
12
1,202
509
25
GBP
79
57
3
128
34
2
MXN
128
46
2
132
47
2
CNY
50
40
2
110
104
5
JPY
26
2
50
31
2
CHF
18
8
38
28
1
Other
 
currencies
116
81
4
108
74
4
Total
 
(single
 
leg)
1,861
900
45
2,435
776
73
 
*
 
Intragroup
 
transactions,
 
on
 
which
 
the
 
actual
 
hedge
 
accounting
 
bookings
 
are
 
based.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
 
 
 
MEUR
2020
2019
External
 
currency
 
forwards
 
under
 
hedge
 
accounting
 
by
 
year
2020
-
1,769
2021
1,010
-
Hedged
 
highly
 
probable
 
forecasted
 
cash
 
flows
 
by
 
year
2020
-
1,977
2021
1,341
193
2022
233
71
2023
50
31
2024
45
176*
2025-
192
-
 
*
 
Includes
 
2024
 
and
 
later
 
for
 
comparison
 
period.
 
Derivatives
 
MEUR
2020
of
 
which
closed
2019
of
 
which
closed
Nominal
 
values
 
of
 
derivative
 
financial
 
instruments
(level
 
2)
Interest
 
rate
 
swaps
450
400
Cross
 
currency
 
swaps
237
246
Currency
 
forwards,
 
included
 
in
 
hedge
 
accounting
1,010
558
1,769
873
Currency
 
forwards,
 
no
 
hedge
 
accounting
650
245
597
213
Total
2,347
803
3,012
1,086
Fair
 
values
 
of
 
derivative
 
financial
 
instruments
 
(level
 
2)
Interest
 
rate
 
swaps
-12
-7
Cross
 
currency
 
swaps
-12
-4
Currency
 
forwards,
 
included
 
in
 
hedge
 
accounting
21
8
Currency
 
forwards,
 
no
 
hedge
 
accounting
14
4
Total
10
 
In
 
addition,
 
the
 
Group
 
had
 
copper
 
futures
 
and
 
swaps
 
amounting
 
to
 
113
 
tons
 
(173)
 
valued
 
at
 
EUR
 
1
 
million
 
(1).
 
Foreign
 
currency
 
forward
 
contracts
 
are
 
against
 
transactional
 
risks
 
and
 
fall
 
due
 
during
 
the
 
following
 
12
 
months
(12).
 
A
 
currency
 
forward
 
is
 
considered
 
closed
 
when
 
there
 
are
 
offsetting
 
cash
 
flows
 
in
 
the
 
same
 
currency
 
with
the
 
same
 
value
 
date.
 
Interest
 
rate
 
swaps
 
are
 
denominated
 
in
 
euros
 
and
 
their
 
average
 
maturity
 
is
 
59
 
months
(69).
 
The
 
average
 
maturity
 
for
 
cross
 
currency
 
swaps
 
is
 
30
 
months
 
(41).
 
Changes
 
in
 
the
 
market
 
value
 
of
 
interest
 
rate
 
derivatives
 
are
 
usually
 
immediately
 
recognised
 
in
 
the
 
statement
 
of
income.
 
However,
 
cash
 
flow
 
hedge
 
accounting
 
in
 
accordance
 
with
 
IFRS
 
9
 
is
 
applied
 
to
 
a
 
EUR
 
130
 
million
 
(130)
amortising
 
interest
 
rate
 
swap
 
maturing
 
in
 
2031.
 
The
 
interest
 
rate
 
hedge
 
swaps
 
variable
 
interest
 
payments
 
of
 
a
large
 
lease
 
agreement
 
,
 
to
 
fixed
 
interest
 
payments.
 
As
 
the
 
hedge
 
and
 
the
 
underlying
 
cash
 
flow
 
have
 
matching
critical
 
terms,
 
the
 
hedge
 
ratio
 
is
 
1:1
 
and
 
the
 
hedge
 
is
 
expected
 
to
 
be
 
100%
 
effective.
 
In
 
2020,
 
a
 
EUR
 
-6
 
million
(2)
 
fair
 
value
 
adjustment
 
related
 
to
 
cash
 
flow
 
hedge
 
was
 
recognised
 
in
 
equit
 
y
 
,
 
and
 
no
 
amounts
 
have
 
been
reclassified
 
to
 
profit
 
and
 
loss.
 
Wärtsilä
 
does
 
not
 
see
 
any
 
significant
 
increase
 
in
 
counterparty
 
credit
 
risk
 
to
 
outstanding
 
derivatives
 
due
 
to
COVID-
 
19
 
pandemic,
 
as
 
only
 
high
 
credit
 
quality
 
counterparties
 
have
 
been
 
used.
 
Derivatives
 
under
 
hedge
accounting
 
are
 
expected
 
to
 
remain
 
effective,
 
as
 
there
 
has
 
been
 
no
 
significant
 
increase
 
in
 
the
 
cancellations
 
of
orders.
 
The
 
hedged
 
cash
 
flows
 
are
 
still
 
considered
 
to
 
be
 
highly
 
probable.
 
Normally
 
all
 
of
 
the
 
Groups'
 
derivatives
 
are
 
carried
 
out
 
according
 
to
 
International
 
Swaps
 
and
 
Derivatives
Association's
 
Master
 
Agreements
 
(ISDA).
 
In
 
case
 
of
 
an
 
event
 
of
 
default
 
under
 
these
 
agreements,
 
the
 
non-
defaulting
 
party
 
may
 
request
 
early
 
termination
 
and
 
set
 
-off
 
of
 
all
 
outstanding
 
transactions.
 
These
 
agreements
 
do
not
 
meet
 
the
 
criteria
 
for
 
offsetting
 
in
 
the
 
statement
 
of
 
financial
 
position.
 
The
 
following
 
table
 
sets
 
out
 
the
 
carrying
amounts
 
of
 
recognised
 
financial
 
instruments
 
that
 
are
 
subject
 
to
 
the
 
above
 
agreements.
 
MEUR
2020
2019
Gross
 
fair
 
values
 
of
 
derivative
 
financial
 
instruments
 
subject
 
to
 
ISDAs
Assets
Cross
 
currency
 
swaps
1
5
Currency
 
forwards
37
18
Total
37
24
Liabilities
Interest
 
rate
 
swaps
-12
-7
Cross
 
currency
 
swaps
-13
-9
Currency
 
forwards
-3
-7
Total
-27
-23
Net
 
fair
 
values
 
of
 
derivative
 
financial
 
instruments
 
subject
 
to
 
ISDAs
Assets
25
8
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
 
 
Liabilities
-16
-8
Total
10
 
 
5.8.
 
FINANCIAL
 
RISKS
 
General
Wärtsilä
 
has
 
a
 
centralised
 
Group
 
Treasury,
 
which
 
has
 
two
 
main
 
objectives:
 
1)
 
to
 
arrange
 
adequate
 
funding
 
for
the
 
Group’s
 
underlying
 
operations
 
on
 
competitive
 
terms
 
and
 
2)
 
to
 
identify
 
and
 
evaluate
 
the
 
financial
 
risks
 
within
the
 
Group
 
and
 
implement
 
the
 
hedges
 
for
 
the
 
Group
 
companies.
 
The
 
objective
 
is
 
to
 
hedge
 
against
 
unfavourable
 
changes
 
in
 
the
 
financial
 
markets
 
and
 
to
 
minimise
 
the
 
impact
 
of
foreign
 
exchange,
 
interest
 
rate,
 
credit,
 
and
 
liquidity
 
risks
 
on
 
the
 
Group’s
 
cash
 
reserves,
 
profits
 
,
 
and
 
shareholder
equity.
 
The
 
Financial
 
Risk
 
Policy
 
is
 
approved
 
by
 
the
 
Board
 
of
 
Directors.
 
The
 
Group
 
Treasury
 
employs
 
only
 
such
instruments
 
whose
 
market
 
value
 
and
 
risk
 
profile
 
it
 
can
 
reliably
 
monitor.
 
Foreign
 
exchange
 
risk
Foreign
 
exchange
 
exposures
 
are
 
monitored
 
at
 
the
 
Business
 
level,
 
hedged
 
at
 
company
 
level
 
against
 
the
 
Group
Treasury
 
,
 
and
 
then
 
netted
 
and
 
covered
 
externally
 
at
 
Group
 
level
 
by
 
the
 
Group
 
Treasury.
 
All
 
material
 
fixed
 
sales
and
 
purchase
 
contracts,
 
including
 
both
 
future
 
cash
 
flows
 
and
 
related
 
accounts
 
receivable
 
and
 
payable,
 
are
hedged.
 
The
 
estimated
 
future
 
commercial
 
exposures
 
are
 
evaluated
 
by
 
the
 
Businesses,
 
and
 
the
 
level
 
of
hedging
 
is
 
decided
 
by
 
the
 
Board
 
of
 
Management.
 
Hedge
 
accounting
 
in
 
accordance
 
with
 
IFRS
 
9
 
is
 
applied
 
to
most
 
of
 
the
 
hedges
 
of
 
these
 
exposures.
 
The
 
hedges
 
cover
 
such
 
time
 
periods
 
that
 
both
 
the
 
prices
 
and
 
costs
can
 
be
 
adjusted
 
to
 
new
 
exchange
 
rates.
 
These
 
periods
 
vary
 
among
 
Group
 
companies
 
from
 
one
 
month
 
to
 
two
years.
 
The
 
Group
 
also
 
hedges
 
its
 
position
 
of
 
the
 
statement
 
of
 
financial
 
position,
 
which
 
includes
 
cash
 
balances,
loans/deposits
 
,
 
as
 
well
 
as
 
other
 
receivables
 
and
 
payables
 
denominated
 
in
 
foreign
 
currencies.
 
As
 
field
 
service
 
work
 
is
 
invoiced
 
in
 
local
 
currencies,
 
there
 
is
 
some
 
foreign
 
exchange
 
change
 
related
 
volatility
 
in
the
 
consolidated
 
net
 
sales
 
.
 
However,
 
the
 
effect
 
on
 
the
 
profitability
 
is
 
limited
 
as
 
the
 
related
 
costs
 
are
 
in
 
the
same
 
currency.
 
Spare
 
part
 
sal
 
es
 
are
 
based
 
on
 
a
 
euro
 
price
 
list
 
and
 
related
 
purchases
 
in
 
non-euro
 
currencies
are
 
hedged,
 
so
 
the
 
effect
 
from
 
foreign
 
currency
 
rate
 
changes
 
on
 
spare
 
part
 
sales
 
is
 
minimal.
 
As
project/hardware
 
sales/purchases
 
,
 
as
 
well
 
as
 
estimated
 
currency
 
exposures
 
from
 
long-term
 
agreements
 
,
 
are
hedged,
 
the
 
Group
 
does
 
not
 
expect
 
significant
 
gains/losses
 
from
 
foreign
 
exchange
 
rate
 
changes
 
in
 
2021
related
 
to
 
its
 
operations,
 
excluding
 
internal
 
financing.
 
The
 
instruments,
 
and
 
their
 
nominal
 
values,
 
used
 
to
 
hedge
 
the
 
Group’s
 
foreign
 
exchange
 
exposures
 
are
 
listed
in
 
Note
 
5.7.
 
Derivative
 
financial
 
instruments.
 
 
Since
 
Wärtsilä
 
has
 
subsidiaries
 
and
 
joint
 
ventures
 
outside
 
the
 
euro
 
zone,
 
the
 
Group’s
 
equity,
 
goodwill
 
and
purchase
 
price
 
allocations
 
are
 
sensitive
 
to
 
exchange
 
rate
 
fluctuations.
 
At
 
the
 
end
 
of
 
2020,
 
the
 
net
 
assets
 
of
Wärtsilä’s
 
foreign
 
subsidiaries
 
and
 
joint
 
ventures
 
outside
 
the
 
euro
 
zone
 
totalled
 
EUR
 
956
 
million
 
(1,041).
 
In
addition,
 
goodwill
 
and
 
purchase
 
price
 
allocations
 
from
 
acquisitions
 
nominated
 
in
 
foreign
 
currencies
 
amounted
to
 
EUR
 
865
 
million
 
(926).
 
In
 
2020,
 
the
 
translation
 
differences
 
recognised
 
in
 
other
 
comprehensive
 
income
mainly
 
come
 
from
 
changes
 
in
 
the
 
GBP
 
exchange
 
rate.
 
Approximately
 
65%
 
(67)
 
of
 
sales
 
and
 
61%
 
(59)
 
of
 
operating
 
costs
 
were
 
denominated
 
in
 
euros,
 
and
approximately
 
20%
 
(20)
 
of
 
sales
 
and
 
11%
 
(10)
 
of
 
operating
 
costs
 
were
 
denominated
 
in
 
US
 
dollars.
 
The
remainder
 
were
 
split
 
between
 
several
 
currencies.
 
The
 
Group’s
 
profits
 
and
 
competitiveness
 
are
 
also
 
indirectly
affected
 
by
 
the
 
home
 
currencies
 
(USD,
 
GBP,
 
JP
 
Y
 
and
 
KRW)
 
of
 
its
 
main
 
competitors.
 
As
Wärtsilä's operations are global
,
 
they
 
often
 
involve
 
currency
 
risks.
 
The
 
largest
 
operative
 
currency
 
positions
(excluding
 
financing)
 
open
 
as
 
of
 
31
 
December
 
2020
 
by
 
currency
 
pair
 
are
 
listed
 
below.
 
2020
Statement
 
of
 
financial
position
Estimated
 
cash
 
flows
MEUR
Base
currency
received
Base
currency
paid
Base
currency
received
Base
currency
paid
Net
EUR/USD
42
53
147
303
167
EUR/NOK
61
30
281
1
310
USD/NOK
30
231
3
259
EUR/CNY
13
20
65
4
63
EUR/GBP
18
20
89
88
EUR/SGD
16
11
20
26
EUR/JPY
13
6
18
3
22
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
 
 
 
2019
Statement
 
of
 
financial
position
Estimated
 
cash
 
flows
MEUR
Base
currency
received
Base
currency
paid
Base
currency
received
Base
currency
paid
Net
EUR/USD
77
152
338
512
249
EUR/NOK
119
48
304
17
358
USD/NOK
50
14
72
108
EUR/CNY
32
26
70
76
EUR/GBP
24
18
8
71
56
EUR/JPY
11
7
9
25
12
 
As
 
the
 
main
 
funding
 
currency
 
for
 
the
 
Group,
 
including
 
the
 
Group
 
Treasury,
 
is
 
the
 
euro
 
and
 
since
 
the
subsidiaries
 
are
 
normally
 
funded
 
in
 
their
 
home
 
currencies
 
by
 
the
 
Group
 
Treasury,
 
the
 
Group
 
Treasury
 
had
 
the
following
 
related
 
open
 
currency
 
positions
 
as
 
of
 
31
 
December
 
2020.
 
2020
2019
MEUR
Loans
Deposits
Net
Loans
Deposits
Net
Intragroup
 
loans/deposits
USD
15
282
266
35
391
356
GBP
68
60
9
48
93
46
CHF
61
61
103
103
AUD
49
49
52
52
NOK
1
1
41
41
SGD
19
19
1
32
31
CNY
12
12
13
13
CAD
11
11
11
11
Other
 
currencies*
6
1
7
2
5
7
External
 
loans/deposits
JPY
237**
237
246**
246
USD
20
20
Total
388
455
692
435
639
906
 
*
 
The
 
other
 
currencies
 
do
 
not
 
net
 
as
 
they
 
are
 
of
 
different
 
currencies.
**
 
External
 
JPY
 
loans
 
are
 
fully
 
hedged
 
with
 
cross
 
currency
 
swaps.
 
Some
 
Group
 
companies
 
in
 
countries
 
whose
 
currencies
 
are
 
not
 
fully
 
convertible,
 
such
 
as
 
Argentina,
 
Brazil,
 
and
Indonesia,
 
have
 
unhedged,
 
intercompany
 
loans
 
nominated
 
either
 
in
 
EUR
 
or
 
USD,
 
which
 
may
 
result
 
in
 
some
foreign
 
exchange
 
differences.
 
The
 
total
 
amount
 
of
 
these
 
loans
 
is
 
EUR
 
66
 
million
 
(192).
 
Wärtsilä
 
does
 
not
 
hedge
 
translation
 
risk.
 
The
 
most
 
significant
 
currencies
 
for
 
Wärtsilä
 
are
 
presented
 
in
 
Note
 
6.6.
Exchange
 
rates.
 
Interest
 
rate
 
risk
Wärtsilä
 
is
 
exposed
 
to
 
interest
 
rate
 
risk
 
primarily
 
through
 
market
 
value
 
changes
 
to
 
the
 
net
 
debt
 
portfolio
 
(price
risk)
 
,
 
as
 
well
 
as
 
through
 
changes
 
in
 
interest
 
rates
 
(re-fixing
 
on
 
rollovers).
 
Interest
 
rate
 
risk
 
is
 
managed
 
by
constantly
 
monitoring
 
the
 
market
 
value
 
of
 
the
 
financial
 
instruments
 
and
 
by
 
using
 
sensitivity
 
analysis.
 
Interest
 
-bearing
 
loan
 
capital
 
at
 
the
 
end
 
of
 
2020
 
totalled
 
EUR
 
1,161
 
million
 
(908).
 
The
 
average
 
interest
 
rate
 
was
0.8%
 
(0.9)
 
and
 
the
 
average
 
re
 
-fixing
 
time
 
13
 
months
 
(21).
 
Wärtsilä
 
spreads
 
its
 
interest
 
rate
 
risk
 
exposure
 
by
 
taking
 
both
 
fixed
 
and
 
floating
 
rate
 
loans.
 
The
 
share
 
of
 
fixed
rate
 
loans
 
as
 
a
 
proportion
 
of
 
the
 
total
 
debt
 
can
 
vary
 
between
 
30
 
and
 
70%.
 
The
 
Board
 
of
 
Directors
 
has
 
given
authorisation
 
to
 
temporarily
 
increase
 
the
 
share
 
of
 
fixed
 
loans
 
up
 
to
 
100%,
 
and
 
the
 
authorisation
 
is
 
valid
 
until
January
 
2022.
 
Wärtsilä
 
hedges
 
its
 
loan
 
portfolio
 
by
 
using
 
derivat
 
ive
 
instruments
 
,
 
such
 
as
 
interest
 
rate
 
swaps,
futures
 
and
 
options.
 
MEUR
2020
2019
Fixed
 
rate
 
loans
366
406
Floating
 
rate
 
loans
796
503
Derivatives
424
424
Share
 
of
 
fixed
 
rate
 
loans
 
of
 
total
 
loans
 
(including
 
derivatives),
 
%
68
91
 
At
 
the
 
end
 
of
 
2020,
 
a
 
one
 
percentage
 
point
 
parallel
 
decrease/increase
 
of
 
the
 
yield
 
curve
 
would
 
have
 
resulted
 
in
a
 
EUR
 
26
 
million
 
(28)
 
increase/decrease
 
in
 
the
 
value
 
of
 
the
 
net
 
debt
 
portfolio,
 
including
 
derivatives.
 
A
 
one
percentage
 
point
 
change
 
in
 
the
 
inte
 
rest
 
level
 
would
 
cause
 
a
 
EUR
 
4
 
million
 
(1)
 
change
 
in
 
the
 
following
 
year’s
interest
 
expenses
 
from
 
the
 
debt
 
portfolio,
 
including
 
derivatives.
 
Additional
 
information
 
related
 
to
 
loans
 
can
 
be
 
found
 
in
 
Note
 
5.2.
 
Financial
 
assets
 
and
 
liabilities
 
by
measurement
 
c
 
ategory
 
and
 
Note
 
5.6.
 
Maturity
 
analysis
 
of
 
financial
 
liabilities.
 
Information
 
on
 
interest
 
rate
derivatives
 
is
 
presented
 
in
 
Note
 
5.7.
 
Derivative
 
financial
 
instruments.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
 
 
 
Liquidity
 
and
 
refinancing
 
risk
Wärtsilä
 
ensures
 
sufficient
 
liquidity
 
at
 
all
 
times
 
by
 
efficient
 
cash
 
management
 
and
 
by
 
maintaining
 
sufficient
available
 
committed
 
and
 
uncommitted
 
credit
 
lines.
 
Refinancing
 
risk
 
is
 
managed
 
by
 
having
 
a
 
balanced
 
and
sufficiently
 
long
 
loan
 
portfolio.
 
Due
 
to
 
the
 
COVID
 
-
 
19
 
pandemic,
 
the
 
liquidity
 
reserves
 
of
 
the
 
Group
 
have
 
been
 
strengthened.
 
The
 
Revolving
Credit
 
Facilities
 
(RCF)
 
having
 
maturity
 
dates
 
in
 
2020
 
were
 
extended
 
until
 
the
 
end
 
of
 
2021,
 
and
 
their
 
total
amount
 
was
 
increased
 
by
 
EUR
 
20
 
million.
 
The
 
total
 
amount
 
of
 
available
 
RCFs,
 
EUR
 
660
 
million,
 
is
 
fully
 
un-
utili
 
sed.
 
Other
 
COVID
 
-19
 
related
 
funding
 
arrangements
 
resulted
 
in
 
disbursement
 
of
 
new
 
long
 
-term
 
loans
totalling
 
EUR
 
190
 
million.
 
As
 
of
 
31
 
December
 
2020,
 
the
 
Group’s
 
liquidity
 
reserves
 
were
 
at
 
high
 
level
 
and
 
the
liquidity
 
position
 
is
 
expected
 
to
 
remain
 
strong
 
du
 
ring
 
2021.
 
The
 
existing
 
loan
 
facilities
 
include:
 
Committed
 
Revolving
 
Credit
 
Facilities
 
totalling
 
EUR
 
660
 
million
 
(640).
 
Finnish
 
Commercial
 
Paper
 
programmes
 
totalling
 
EUR
 
850
 
million
 
(800).
 
The
 
average
 
maturity
 
of
 
the
 
non-current
 
debt
 
is
 
36
 
months
 
(4
 
6)
 
and
 
the
 
average
 
maturity
 
of
 
the
 
confirmed
credit
 
lines
 
is
 
21
 
months
 
(30).
 
Additional
 
information
 
in
 
Note
 
5.6.
 
Maturity
 
analysis
 
of
 
financial
 
liabilities.
 
At
 
year-end,
 
the
 
Group
 
had
 
cash
 
and
 
cash
 
equivalents
 
totalling
 
EUR
 
932
 
million
 
(369),
 
of
 
which
 
EUR
 
14
 
million
(11)
 
is
 
related
 
to
 
assets
 
held
 
for
 
sale,
 
as
 
well
 
as
 
EUR
 
660
 
million
 
(640)
 
of
 
non-utilised
 
committed
 
credit
facilities.
 
Commercial
 
Paper
 
Programmes
 
were
 
not
 
utilised
 
on
 
31
 
December
 
2020
 
nor
 
on
 
31
 
December
 
2019.
 
Committed
 
Revolving
 
Credit
 
Facilities
 
,
 
as
 
well
 
as
 
the
 
parent
 
company's
 
long-term
 
loans,
 
include
 
a
 
financial
covenant
 
(solvency
 
ratio).
 
The
 
s
 
olvency
 
ratio
 
is
 
expected
 
to
 
remain
 
clearly
 
over
 
the
 
covenant
 
level
 
for
 
the
foreseeable
 
future.
 
Revolving
 
credit
 
facilities
 
MEUR
2020
2019
Year
Maturing
Available
(end
 
of
period)
Maturing
Available
(end
 
of
period)
2019
-
-
640
2020
660
130
510
2021
280
380
130
380
2022
90
290
90
290
2023
160
130
160
130
2024
130
130
 
Credit
 
risk
Responsibility
 
for
 
managing
 
the
 
credit
 
risks
 
associated
 
with
 
ordinary
 
commercial
 
activities
 
lies
 
with
 
the
Businesses
 
and
 
the
 
Group
 
companies.
 
Major
 
trade
 
and
 
project
 
finance
 
credit
 
risks
 
are
 
minimised
 
by
transferring
 
risks
 
to
 
banks,
 
insurance
 
companies
 
,
 
and
 
export
 
credit
 
organisations.
 
The
 
credit
 
risks
 
related
 
to
 
the
 
placement
 
of
 
liquid
 
funds
 
and
 
to
 
trading
 
in
 
financial
 
instruments
 
are
 
minimised
 
by
setting
 
explicit
 
limits
 
for
 
the
 
counterparties,
 
and
 
by
 
making
 
agreements
 
only
 
with
 
the
 
most
 
reputable
 
domestic
and
 
international
 
banks
 
and
 
financial
 
institutions.
 
As
 
only
 
high
 
credit
 
quality
 
(A-
 
minimum
 
rating
 
requirement)
counterparties
 
are
 
utilised
 
for
 
derivative
 
financial
 
instruments
 
,
 
and
 
the
 
transactions
 
are
 
made
 
under
 
ISDA
Master
 
Agreements,
 
no
 
credit
 
losses
 
are
 
expected
 
from
 
these
 
instruments.
 
The
 
Group
 
companies
 
deposit
 
the
 
maximum
 
amount
 
of
 
their
 
liquid
 
financial
 
assets
 
with
 
the
 
centralised
 
treasury
when
 
local
 
laws
 
and
 
central
 
bank
 
regulations
 
allow
 
it.
 
The
 
Group’s
 
funds
 
are
 
placed
 
in
 
instruments
 
with
sufficient
 
liquidity
 
(current
 
bank
 
deposits
 
or
 
Finnish
 
Commercial
 
Papers)
 
and
 
rating
 
(at
 
least
 
single
 
-A
 
rated
instruments
 
or
 
other
 
instruments
 
approved
 
by
 
the
 
Group’s
 
CFO).
 
These
 
placements
 
are
 
constantly
 
monitored
by
 
the
 
Group
 
Treasury,
 
and
 
Wärtsilä
 
does
 
not
 
expect
 
any
 
future
 
defaults
 
from
 
the
 
placements.
 
The
 
expected
 
credit
 
losses
 
associated
 
with
 
investments
 
carried
 
at
 
amortised
 
cost
 
are
 
assessed
 
on
 
a
 
forward-
looking
 
basis
 
based
 
on
 
investment
 
maturity
 
dates,
 
and
 
counterparty
 
credit
 
risk
 
on
 
a
 
quarterly
 
basis.
 
As
 
of
 
31
December
 
2020,
 
the
 
expected
 
credit
 
loss
 
was
 
not
 
material.
 
The
 
expected
 
credit
 
losses
 
are
 
presented
 
in
 
Note
 
4.2.
 
Trade
 
receivables
 
and
 
contract
 
assets
 
and
 
liabilities
 
.
 
Equity
 
price
 
risk
Wärtsilä
 
has
 
equity
 
investments
 
totalling
 
EUR
 
12
 
million
 
(14)
 
in
 
power
 
plant
 
companies,
 
most
 
of
 
which
 
are
located
 
in
 
developing
 
countries
 
and
 
performing
 
well
 
according
 
to
 
expectations.
 
Additional
 
information
 
is
 
given
in
 
Note
 
5.2.
 
Financial
 
assets
 
and
 
liabilities
 
by
 
measurement
 
category.
 
Capital
 
risk
 
management
Wärtsilä’s
 
policy
 
is
 
to
 
secure
 
a
 
strong
 
capital
 
base,
 
both
 
to
 
maintain
 
the
 
confidence
 
of
 
investors
 
and
 
creditors
and
 
for
 
the
 
future
 
development
 
of
 
the
 
business.
 
The
 
capital
 
is
 
defined
 
as
 
total
 
equity,
 
including
 
non-controlling
interests
 
and
 
net
 
interest
 
-bearing
 
debt.
 
The
 
target
 
for
 
Wärtsilä
 
is
 
to
 
maintain
 
gearing
 
below
 
0.50
 
and
 
to
 
pay
 
a
dividend
 
of
 
at
 
least
 
50%
 
of
 
earnings
 
over
 
the
 
cycle.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
 
 
 
MEUR
2020
2019
Interest
 
-bearing
 
debt,
 
non-current
1,005
851
Lease
 
liabilities,
 
non-current
124
146
Interest
 
-bearing
 
debt,
 
current
156
58
Lease
 
liabilities,
 
current
42
42
Total
 
interest
 
-bearing
 
liabilities
1,327
1,096
Interest
 
-bearing
 
receivables
-1
-1
Cash
 
and
 
cash
 
equivalents
-919
-358
Cash
 
and
 
cash
 
equivalents
 
pertaining
 
to
 
assets
 
held
 
for
 
sale
-14
-11
Total
 
interest
 
-bearing
 
assets
-933
-370
Total
 
net
 
interest
 
-bearing
 
debt
394
726
Total
 
equity
2,188
2,410
Gearing
0.18
0.30
In
 
the
 
capital
 
management
 
Wärtsilä
 
also
 
follows
 
the
 
gearing
 
development:
Equity
 
and
 
liabilities
6,232
6,398
Advances
 
received
-452
-452
5,780
5,946
Solvency
 
ratio,
 
%
38.1
40.8
 
6.
 
GROUP
 
STRUCTURE
6.1.
 
ACQUISITIONS
Accounting
 
principles
Acquired
 
and
 
established
 
companies
 
are
 
accounted
 
for
 
using
 
the
 
acquisition
 
method.
 
Accordingly,
 
the
purchase
 
price
 
and
 
the
 
acquired
 
company’s
 
identifiable
 
assets,
 
liabilities
 
,
 
and
 
contingent
 
liabilities
 
are
measured
 
at
 
fair
 
value
 
on
 
the
 
date
 
of
 
acquisition.
 
In
 
the
 
acquisition
 
of
 
additional
 
interest,
 
where
 
the
 
Group
already
 
has
 
control,
 
the
 
non-controlling
 
interest
 
is
 
measured
 
either
 
at
 
fair
 
value
 
or
 
at
 
the
 
non
 
-controlling
interests’
 
proportionate
 
share
 
of
 
the
 
identifiable
 
net
 
assets.
 
The
 
difference
 
between
 
the
 
purchase
 
price,
possible
 
equity
 
belonging
 
to
 
the
 
non-controlling
 
interests
 
,
 
and
 
the
 
acquired
 
company’s
 
net
 
identifiable
 
assets,
liabilities
 
and
 
contingent
 
liabilities
 
measured
 
at
 
fair
 
value,
 
is
 
goodwill.
 
Goodwill
 
is
 
tested
 
for
 
impairment
 
at
 
least
annually.
 
The
 
purchase
 
price
 
includes
 
the
 
consideration
 
paid,
 
measured
 
at
 
fair
 
value.
 
The
 
consideration
 
does
not
 
include
 
transaction
 
costs,
 
which
 
are
 
recognised
 
in
 
the
 
statement
 
of
 
income.
 
The
 
transaction
 
costs
 
are
expensed
 
in
 
the
 
same
 
reporting
 
period
 
in
 
which
 
they
 
occur,
 
except
 
those
 
costs
 
resulting
 
from
 
issued
 
debt
 
or
equity
 
instruments.
In
 
significant
 
business
 
combinations,
 
the
 
Group
 
has
 
used
 
external
 
advis
 
ors
 
when
 
estimating
 
the
 
fair
 
values
 
of
property,
 
plant
 
and
 
equipment
 
and
 
intangible
 
assets.
 
For
 
property,
 
plant
 
and
 
equipment,
 
comparisons
 
have
been
 
made
 
of
 
the
 
market
 
prices
 
of
 
similar
 
assets,
 
and
 
the
 
depreciation
 
of
 
the
 
acquired
 
assets
 
due
 
to
 
ageing,
wear,
 
and
 
other
 
similar
 
factors
 
has
 
been
 
estimated.
 
The
 
fair
 
value
 
measurement
 
of
 
intangible
 
assets
 
is
 
based
on
 
estimates
 
of
 
the
 
future
 
cash
 
flows
 
associated
 
with
 
the
 
assets.
 
The
 
acquired
 
identifiable
 
intangible
 
assets
typically
 
include
 
technology,
 
customer
 
relationships,
 
and
 
trademarks.
Any
 
contingent
 
consideration
 
(additional
 
purchase
 
price)
 
related
 
to
 
the
 
combination
 
of
 
businesses
 
is
 
measured
at
 
fair
 
value
 
on
 
the
 
date
 
of
 
acquisition.
 
It
 
is
 
classified
 
either
 
as
 
a
 
liability
 
or
 
equity.
 
Contingent
 
consideration
classified
 
as
 
a
 
liability
 
is
 
measured
 
at
 
fair
 
value
 
on
 
the
 
last
 
day
 
of
 
each
 
reporting
 
period,
 
and
 
the
 
resulting
 
loss
or
 
gain
 
is
 
recognised
 
through
 
the
 
statement
 
of
 
income.
 
Contingent
 
consideration
 
classified
 
as
 
equity
 
is
 
not
 
re-
measured.
The
 
acquired
 
subsidiaries
 
are
 
included
 
in
 
the
 
consolidated
 
financial
 
statements
 
from
 
the
 
day
 
the
 
Group
 
has
control.
Accounting
 
estimates
 
and
 
judgements
Accounting
 
for
 
the
 
business
 
combinations
 
may
 
require
 
estimates
 
of
 
the
 
fair
 
value
 
of
 
acquired
 
assets
 
and
 
the
expected
 
amount
 
of
 
realised
 
contingent
 
consideration.
 
2020
In
 
2020,
 
there
 
were
 
no
 
acquisitions.
 
 
 
 
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
 
 
 
2019
Ships
 
Electronic
 
Services
 
Ltd
In
 
May,
 
Wärtsilä
 
acquired
 
100%
 
of
 
Ships
 
Electronic
 
Services
 
Ltd
 
(“SES”),
 
a
 
UK
 
based
 
company
 
specialising
 
in
navigation
 
and
 
communication
 
electronics,
 
installation,
 
maintenance
 
and
 
repair
 
services,
 
mainly
 
for
commercial
 
and
 
leisure
 
vessels.
 
SES’
 
turnover
 
was
 
approximately
 
GBP
 
10
 
million
 
and
 
the
 
company
 
employed
a
 
staff
 
of
 
47.
 
The
 
enterprise
 
value
 
of
 
the
 
transaction
 
was
 
GBP
 
3.2
 
million.
 
The
 
consideration
 
paid
 
and
 
the
 
impact
 
on
 
profit
 
for
 
the
 
fi
 
nancial
 
period
 
were
 
not
 
significant.
 
6.2.
 
DISPOSALS
Accounting
 
principles
The
 
disposed
 
subsidiaries
 
are
 
included
 
in
 
the
 
consolidated
 
financial
 
statements
 
until
 
the
 
control
 
ends.
 
2020
In
 
October
 
2020,
 
Wärtsilä
 
divested
 
the
 
shares
 
in
 
Wärtsilä
 
JOVYATLAS
 
GmbH
 
to
 
Jacob
 
Waitz
 
Industrie
 
GmbH.
Wärtsilä
 
JOVYATLAS
 
has
 
been
 
manufacturing
 
UPS
 
systems,
 
rectifiers,
 
power
 
inverters,
 
frequency
transformers
 
and
 
resistors
 
with
 
related
 
services
 
for
 
many
 
industries
 
already
 
for
 
seven
 
decades.
 
In
 
2019,
 
its
 
net
sales
 
were
 
EUR
 
20
 
million.
 
The
 
impact
 
of
 
the
 
divestment
 
on
 
the
 
profit
 
for
 
the
 
financial
 
period
 
is
 
approximately
EUR
 
-6
 
million.
 
Also
 
,
 
in
 
October
 
2020,
 
Wärtsilä
 
divested
 
the
 
shares
 
in
 
Wärtsilä
 
Valves
 
Ltd
 
to
 
an
 
affiliate
 
of
 
Evergreen
 
Capital
L.P.
 
Wärtsilä
 
Valves
 
 
activities
 
included
 
the
 
engineering,
 
assembly,
 
testing,
 
sales
 
,
 
and
 
delivery
 
of
 
nickel
aluminium
 
bronze
 
(NAB)
 
and
 
duplex
 
valves
 
for
 
marine,
 
oil
 
&
 
gas
 
and
 
energy
 
markets.
 
It
 
also
 
offers
 
applications
for
 
Valves’
 
products,
 
including,
 
for
 
example,
 
FPSO,
 
petrochemical
 
facilities,
 
power
 
generation,
 
LNG,
 
naval
marine,
 
marine
 
services,
 
waste
 
water
 
treatment
 
plants
 
and
 
pipelines.
 
The
 
annual
 
net
 
sales
 
were
 
approximately
EUR
 
15
 
million
 
in
 
2019.
 
The
 
impact
 
of
 
the
 
divestment
 
on
 
the
 
profit
 
for
 
the
 
financial
 
period
 
is
 
approximately
EUR
 
-10
 
million.
 
In
 
December
 
2020,
 
Wärtsilä
 
finali
 
sed
 
the
 
divestment
 
of
 
shares
 
in
 
Wärtsilä
 
ELAC
 
Nautik
 
GmbH
 
(ELAC
 
Nautik)
to
 
Cohort
 
plc.
 
The
 
divestment
 
was
 
originally
 
announced
 
in
 
December
 
2019.
 
ELAC
 
Nautik’s
 
main
 
market
 
focus
was
 
hydroacoustic
 
products,
 
including
 
sonars,
 
underwater
 
communication
 
systems,
 
and
 
echo
 
systems
 
for
small
 
and
 
medium
 
sized
 
military
 
submarines.
 
The
 
annual
 
net
 
sales
 
were
 
approximately
 
EUR
 
21
 
million
 
in
 
2019.
The
 
impact
 
of
 
the
 
divestment
 
on
 
the
 
profit
 
for
 
the
 
financial
 
period
 
is
 
not
 
significant.
 
All
 
businesses
 
disposed
 
belonged
 
to
 
Portfolio
 
Business.
 
2019
In
 
2019,
 
there
 
were
 
no
 
disposals.
6.3.
 
ASSETS
 
HELD
 
FOR
 
SALE
Accounting
 
principles
Non-current
 
assets
 
and
 
assets
 
and
 
liabilities
 
related
 
to
 
discontinued
 
operations
 
are
 
classified
 
as
 
held
 
for
sale
 
if
 
their
 
carrying
 
amounts
 
are
 
expected
 
to
 
be
 
recovered
 
primarily
 
through
 
sale
 
rather
 
than
 
through
continuing
 
use.
 
Classification
 
as
 
held
 
for
 
sale
 
requires
 
that
 
the
 
following
 
criteria
 
are
 
met;
 
the
 
sale
 
is
 
highly
probable,
 
the
 
asset
 
is
 
available
 
for
 
immediate
 
sale
 
in
 
its
 
present
 
condition
 
subject
 
to
 
usual
 
and
 
customary
terms,
 
the
 
management
 
is
 
committed
 
to
 
the
 
sale,
 
and
 
the
 
sale
 
is
 
expected
 
to
 
be
 
completed
 
within
 
one
 
year
from
 
the
 
date
 
of
 
classification.
Prior
 
to
 
classification
 
as
 
held
 
for
 
sale,
 
the
 
assets
 
or
 
assets
 
and
 
liabilities
 
related
 
to
 
a
 
disposal
 
group
 
in
question
 
are
 
measured
 
according
 
to
 
the
 
respective
 
IFRS
 
standards.
 
From
 
the
 
date
 
of
 
classification,
 
non-
current
 
assets
 
held
 
for
 
sale
 
are
 
measured
 
at
 
the
 
lower
 
of
 
the
 
carrying
 
amount
 
and
 
the
 
fair
 
value
 
less
 
costs
to
 
sell,
 
and
 
the
 
recognition
 
of
 
depreciation
 
and
 
amortisation
 
is
 
discontinued.
Non-current
 
assets
 
held
 
for
 
sale
 
are
 
presented
 
in
 
the
 
statement
 
of
 
financial
 
position
 
separately
 
from
 
other
items.
 
The
 
comparison
 
figures
 
for
 
the
 
statement
 
of
 
financial
 
position
 
are
 
not
 
restated.
 
2020
Wärtsilä
 
has
 
classified
 
Entertainment
 
and
 
Tank
 
Control
 
businesses
 
as
 
assets
 
held
 
for
 
sale.
 
Entertainment
business
 
has
 
been
 
classified
 
as
 
assets
 
held
 
for
 
sale
 
since
 
the
 
fourth
 
quarter
 
of
 
2019
 
and
 
Tank
 
Control
business
 
since
 
the
 
second
 
quarter
 
of
 
2020.
 
Completion
 
of
 
the
 
transactions
 
are
 
expected
 
in
 
the
 
first
 
half
 
of
2021.
 
Additionally,
 
Wärtsilä
 
has
 
started
 
preparations
 
to
 
divest
 
Wärtsilä
 
EUROATLAS
 
GmbH,
 
which
 
is
 
also
 
classified
as
 
assets
 
held
 
for
 
sale.
 
Completion
 
of
 
the
 
transaction
 
is
 
expected
 
during
 
the
 
second
 
half
 
of
 
2021.
 
The
 
impact
on
 
the
 
profit
 
for
 
the
 
financial
 
period
 
is
 
approximately
 
EUR
 
-
 
6
 
million.
 
All
 
assets
 
held
 
for
 
sale
 
belong
 
to
 
Portfolio
 
Business
 
and
 
they
 
are
 
valued
 
at
 
the
 
lower
 
of
 
book
 
value
 
or
 
fair
value.
 
2019
In
 
December,
 
Wärtsilä
 
announced
 
the
 
divestment
 
of
 
shares
 
in
 
Wärtsilä
 
ELAC
 
Nautik
 
GmbH
 
(ELAC
 
Nautik)
 
to
Cohort
 
plc.
 
ELAC
 
Nautik's
 
main
 
market
 
focus
 
is
 
on
 
hydroacoustic
 
products,
 
including
 
sonars,
 
underwater
communication
 
systems
 
and
 
echo
 
systems
 
for
 
small
 
and
 
medium
 
sized
 
military
 
submarines.
 
Wärtsilä,
 
through
 
its
 
Smart
 
Marine
 
Ecosystem
 
approach,
 
is
 
leading
 
the
 
marine
 
industry’s
 
transition
 
into
 
a
 
new
era
 
of
 
high
 
efficiency,
 
greater
 
safety,
 
and
 
outstanding
 
environmental
 
performance.
 
As
 
this
 
is
 
Wärtsilä's
 
core
strategy
 
for
 
Marine
 
Business,
 
and
 
ELAC
 
Nautik
 
’s
 
business
 
has
 
no
 
clear
 
synergistic
 
link
 
to
 
Wärtsilä’s
 
Smart
Marine
 
activities
 
in
 
transforming
 
the
 
marine
 
sector,
 
Wärtsilä’s
 
portfolio
 
is
 
being
 
aligned
 
to
 
those
 
growth
businesses
 
that
 
can
 
drive
 
this
 
transition.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
 
 
 
Additionally,
 
Wärtsilä
 
has
 
started
 
preparations
 
to
 
divest
 
its
 
Entertainment
 
business,
 
which
 
is
 
also
 
classified
 
as
assets
 
held
 
for
 
sale.
 
The
 
assets
 
held
 
for
 
sale
 
belong
 
to
 
the
 
Wärtsilä
 
Marine
 
Business
 
segment
 
and
 
they
 
are
 
valued
 
at
 
the
 
lower
 
of
book
 
value
 
or
 
fair
 
value.
 
Subject
 
to
 
approvals,
 
completion
 
of
 
these
 
transactions
 
is
 
expected
 
in
 
the
 
early
 
part
 
of
 
2020.
 
Items
 
on
 
statement
 
of
 
financial
 
positi
 
on
MEUR
31.12.2020
31.12.2019
Goodwill
7
Other
 
intangible
 
assets
1
Property,
 
plant
 
and
 
equipment
4
3
Right
 
-of
 
-use
 
assets
2
4
Deferred
 
tax
 
assets
12
8
Inventories
23
18
Other
 
receivables,
 
current
42
39
Cash
 
and
 
cash
 
equivalents
14
11
Assets
 
held
 
for
 
sale
105
82
Write
 
-down
 
of
 
assets
-6
Net
 
for
 
assets
 
held
 
for
 
sale
99
82
Interest
 
-bearing
 
debt,
 
non-current
4
Deferred
 
tax
 
liabilities
12
8
Other
 
liabilities,
 
non-current
3
8
Other
 
liabilities,
 
current
52
47
Liabilities
 
directly
 
attributable
 
to
 
assets
 
held
 
for
 
sale
68
68
Net
 
assets
31
14
 
In
 
2020,
 
the
 
write
 
-down
 
of
 
assets
 
EUR
 
-6
 
million,
 
relates
 
to
 
the
 
classification
 
of
 
Wärtsilä
 
EUROATLAS
 
GmbH
as
 
assets
 
held
 
for
 
sale.
 
The
 
expense
 
is
 
recognised
 
in
 
depreciation,
 
amorti
 
s
 
ation
 
and
 
impairment
 
in
 
the
statement
 
of
 
income.
 
6.4.
 
INVESTMENTS
 
IN
 
ASSOCIATES
 
AND
 
JOINT
 
VENTURES
Accounting
 
principles
Associated
 
companies
 
are
 
all
 
entities
 
over
 
which
 
the
 
Group
 
has
 
significant
 
influence
 
but
 
not
 
control
 
or
 
joint
control.
 
This
 
is
 
generally
 
the
 
case
 
where
 
the
 
Group
 
holds
 
between
 
20%
 
and
 
50%
 
of
 
the
 
voting
 
rights.
A
 
joint
 
venture
 
is
 
a
 
joint
 
arrangement
 
whereby
 
the
 
parties
 
that
 
have
 
joint
 
control
 
of
 
the
 
arrangement
 
have
rights
 
to
 
the
 
net
 
assets
 
of
 
the
 
joint
 
venture.
 
Joint
 
control
 
is
 
established
 
by
 
contractual
 
agreement.
Associated
 
companies
 
and
 
joint
 
ventures
 
are
 
included
 
in
 
the
 
consolidated
 
financial
 
statements
 
using
 
the
equity
 
method
 
from
 
the
 
date
 
the
 
Group’s
 
significant
 
influence
 
or
 
joint
 
control
 
commences
 
until
 
the
 
date
 
it
ceases.
 
Investments
 
in
 
associates
 
are
 
initially
 
recognised
 
at
 
cost,
 
and
 
the
 
carrying
 
amount
 
is
 
increased
 
or
decreased
 
according
 
to
 
the
 
Group´s
 
share
 
of
 
changes
 
in
 
the
 
net
 
assets
 
of
 
the
 
associate
 
after
 
the
 
date
 
of
 
the
acquisition.
 
The
 
Group’s
 
share
 
of
 
the
 
associated
 
company’s
 
or
 
joint
 
venture’s
 
profit
 
for
 
the
 
reporting
 
period
is
 
shown
 
as
 
a
 
separate
 
item
 
before
 
the
 
Group’s
 
operating
 
result,
 
on
 
the
 
line
 
Share
 
of
 
result
 
of
 
associates
and
 
joint
 
ventures.
 
The
 
Group’s
 
share
 
of
 
the
 
associated
 
company’s
 
or
 
joint
 
venture’s
 
changes
 
recognised
 
in
other
 
comprehensive
 
income
 
is
 
recognised
 
in
 
the
 
Group’s
 
other
 
comprehensive
 
income.
 
Wärtsilä’s
proportion
 
of
 
the
 
associated
 
company’s
 
or
 
joint
 
venture’s
 
post
 
-acquisition
 
accumulated
 
equity
 
is
 
included
 
in
the
 
Group’s
 
equity.
 
If
 
the
 
Group’s
 
share
 
of
 
the
 
associated
 
company's
 
or
 
joint
 
venture's
 
losses
 
exceeds
 
its
interest
 
in
 
the
 
company,
 
the
 
carrying
 
amount
 
is
 
written
 
down
 
to
 
zero.
 
After
 
this,
 
losses
 
are
 
only
 
recognised
 
if
the
 
Group
 
has
 
incurred
 
obligations
 
from
 
the
 
associated
 
company
 
or
 
joint
 
venture.
The
 
accumulated
 
exchange
 
rate
 
differences
 
arising
 
from
 
the
 
consolidation
 
of
 
associated
 
companies
 
and
joint
 
ventures,
 
which
 
are
 
recognised
 
in
 
equity,
 
are
 
recognised
 
in
 
the
 
statement
 
of
 
income
 
as
 
part
 
of
 
the
 
gain
or
 
loss
 
when
 
change
 
in
 
ownership
 
occurs.
 
MEUR
2020
2019
Carrying
 
amount
 
on
 
1
 
January
42
66
Share
 
of
 
result
3
-9
Dividends
-1
-1
Translation
 
differences
-2
-1
Reduction
 
of
 
share
 
capital
 
in
 
associates
 
and
 
joint
 
ventures
-28
Impairment
9
-13
Carrying
 
amount
 
on
 
31
 
December
23
42
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
 
 
 
 
Summary
 
of
 
financial
 
information
 
(100%):
 
2020
MEUR
Holding
 
%
Non
 
-current
 
assets
Current
assets
Equity
Non
 
-current
liabilities
Current
liabilities
Net
 
sales
Profit
 
for
 
the
 
financial
 
period
Joint
 
ventures
Wärtsilä
 
Qiyao
 
Diesel
 
Company
 
Ltd.
China
50.0
7
32
22
0
17
54
5
Wärtsilä
 
Hyundai
 
Engine
 
Co
 
Ltd.
South
 
Korea
0.0
-2
CSSC
 
Wärtsilä
 
Electrical
 
&
 
Automation
 
Co.,
 
Ltd.
China
49.0
0
4
2
0
2
19
0
CSSC
 
Wärtsilä
 
Engine
 
(Shanghai)
 
Co.,
 
Ltd.
China
49.0
21
73
20
0
74
66
1
Repropel
 
Sociedad
 
de
 
reparacao
 
de
 
helices
Portugal
50.0
2
1
1
1
 
CSSC
 
Wärtsilä
 
Engine
 
(Shanghai)
 
Co.,
 
Ltd.
 
manufactures
 
medium
 
and
 
large
 
bore
 
medium
 
speed
 
diesel
 
and
 
dual
 
-fuel
 
engines
 
at
 
its
 
factory
 
in
 
Lingang,
 
Shanghai,
 
China.
 
Wärtsilä
 
Hyundai
 
Engine
 
Co
 
Ltd.
 
manufactures
 
Wärtsilä
 
50DF
dual-fuel
 
engines
 
for
 
LNG
 
carriers
 
and
 
other
 
marine
 
applications
 
in
 
Mokpo,
 
South
 
Korea.
 
Wärtsilä
 
Qiyao
 
Diesel
 
Company
 
Ltd.
 
manufac
 
tures
 
marine
 
auxiliary
 
engines
 
in
 
Shanghai,
 
China.
 
CSSC
 
Wärtsilä
 
Electrical
 
&
 
Automation
 
Co.,
Ltd.
 
manufactures
 
advanced
 
electronical
 
and
 
automation
 
solutions
 
for
 
the
 
cruise
 
industry.
 
Wärtsilä
 
Hyundai
 
Engine
 
Co
 
Ltd.
 
was
 
disposed
 
on
 
31
 
December
 
2020.
 
During
 
the
 
financial
 
period,
 
Wärtsilä
 
Land
 
&
 
Sea
 
Academy,
 
Inc
 
.
 
was
 
liquidated,
 
and
 
the
 
shares
 
of
 
Neptun
 
Maritime
 
AS
 
were
 
sold.
 
2019
MEUR
Holding
 
%
Non
 
-current
 
assets
Current
assets
Equity
Non
 
-current
liabilities
Current
liabilities
Net
 
sales
Profit
 
for
 
the
 
financial
 
period
Joint
 
ventures
Wärtsilä
 
Qiyao
 
Diesel
 
Company
 
Ltd.
China
50.0
7
32
19
20
30
2
Wärtsilä
 
Hyundai
 
Engine
 
Co
 
Ltd.
South
 
Korea
50.0
14
57
68
1
2
19
-21
CSSC
 
Wärtsilä
 
Electrical
 
&
 
Automation
 
Co.,
 
Ltd.
China
49.0
10
2
8
9
CSSC
 
Wärtsilä
 
Engine
 
(Shanghai)
 
Co.,
 
Ltd.
China
49.0
19
77
20
76
78
1
Repropel
 
Sociedad
 
de
 
reparacao
 
de
 
helices
Portugal
50.0
1
1
1
Associated
 
companies
Wärtsilä
 
Land
 
&
 
Sea
 
Academy,
 
Inc.
Philippines
40.0
-2
2
Neptun
 
Maritime
 
AS
Norway
40.0
1
1
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
 
 
6.5.
 
SUBSIDIARIES
Accounting
 
principles
The
 
consolidated
 
financial
 
statements
 
include
 
the
 
parent
 
company
 
Wärtsilä
 
Corporation
 
and
 
all
 
subsidiaries
over
 
which
 
the
 
Group
 
has
 
control.
 
The
 
Group
 
controls
 
an
 
entity
 
when
 
the
 
Group
 
is
 
exposed
 
to,
 
or
 
has
 
rights
to,
 
variable
 
returns
 
from
 
its
 
involvement
 
with
 
the
 
entity
 
and
 
has
 
the
 
ability
 
to
 
affect
 
those
 
returns
 
through
 
its
power
 
to
 
direct
 
the
 
activities
 
of
 
the
 
entity.
 
When
 
the
 
Group
 
has
 
less
 
than
 
a
 
majority
 
of
 
voting
 
or
 
similar
 
rights
in
 
an
 
entity,
 
the
 
Group
 
considers
 
all
 
relevant
 
facts
 
and
 
circumstances
 
in
 
assessing
 
whether
 
it
 
has
 
power
over
 
an
 
entity,
 
including
 
the
 
contractual
 
arrangements,
 
voting
 
rights,
 
and
 
potential
 
voting
 
rights.
 
The
 
Group
reassesses
 
whether
 
or
 
not
 
it
 
controls
 
an
 
entity
 
if
 
facts
 
and
 
circumstances
 
indicate
 
that
 
there
 
are
 
changes
 
to
the
 
elements
 
of
 
control.
The
 
financial
 
information
 
from
 
subsidiaries
 
in
 
countries
 
with
 
hyperinflation
 
are
 
adjusted
 
according
 
to
 
IAS
 
29,
when
 
the
 
impact
 
of
 
the
 
hyperinflation
 
is
 
considered
 
material
 
for
 
the
 
consolidated
 
financial
 
statements.
 
Geo
 
-
graph
 
-
ical
 
area
Company
 
name
 
Location
Activities
Share
%
Europe
Wärtsilä
 
Cyprus
 
Limited
Cyprus
Sales
 
and
 
services
100.0
Wärtsilä
 
Danmark
 
A/S
Denmark
Sales
 
and
 
services
100.0
Wärtsilä
 
Lyngsø
 
Marine
 
A/S
Denmark
Sales
 
and
 
services
100.0
Wärtsilä
 
Puregas
 
Solutions
 
A/S
Denmark
Sales
 
and
 
services
100.0
Wärtsilä
 
BLRT
 
Estonia
 
Estonia
Sales
 
and
 
services
51.7
Eniram
 
Oy
Finland
Sales
 
and
 
services
100.0
Wärtsilä
 
Finland
 
Oy
Finland
Production,
 
sales
 
and
 
services
100.0
Wärtsilä
 
Projects
 
Oy
Finland
Sales
 
and
 
services
100.0
Wärtsilä
 
Solutions
 
Oy
Finland
Sales
 
and
 
services
100.0
Wärtsilä
 
Technology
 
Oy
 
Ab
Finland
Holding
100.0
Wärtsilä
 
France
 
S.A.S.
France
Sales
 
and
 
services
100.0
Wärtsilä
 
Voyage
 
Mediterranean
 
SAS
France
Sales
 
and
 
services
100.0
Wärtsilä
 
Deutschland
 
GmbH
Germany
Sales
 
and
 
services
100.0
Wärtsilä
 
Funa
 
International
 
GmbH
Germany
Sales
 
and
 
services
100.0
Wärtsilä
 
SAM
 
Electronics
 
GmbH
Germany
Sales
 
and
 
services
100.0
Wärtsilä
 
Voyage
 
Germany
 
GmbH
Germany
Sales
 
and
 
services
100.0
Wärtsilä
 
Serck
 
Como
 
GmbH
Germany
Sales
 
and
 
services
100.0
Wärtsilä
 
Guidance
 
Marine
 
Ltd
the
 
United
Kingdom
Sales
 
and
 
services
100.0
Wärtsilä
 
Puregas
 
Solutions
 
Ltd
the
 
United
Kingdom
Sales
 
and
 
services
100.0
Wärtsilä
 
UK
 
Ltd
the
 
United
Kingdom
Production,
 
sales
 
and
 
services
100.0
Wärtsilä
 
Voyage
 
UK
 
Limited
the
 
United
Kingdom
Sales
 
and
 
services
100.0
Ships
 
Electronic
 
Services
 
Ltd
the
 
United
Kingdom
Sales
 
and
 
services
100.0
Greenham
 
Regis
 
Ltd
the
 
United
Kingdom
Sales
 
and
 
services
100.0
Wärtsilä
 
Water
 
Systems
 
Ltd
the
 
United
Kingdom
Sales
 
and
 
services
100.0
Wärtsilä
 
Defence
 
Solutions
 
Ltd
the
 
United
Kingdom
Sales
 
and
 
services
100.0
Wärtsilä
 
Greece
 
S.A.
Greece
Sales
 
and
 
services
100.0
Wärtsilä
 
Hungary
 
Kft
Hungary
Sales
 
and
 
services
100.0
Wärtsilä
 
Voyage
 
Investments
 
Unlimited
 
Company
Ireland
Sales
 
and
 
services
100.0
Transas
 
New
 
Building
 
Limited
Ireland
Sales
 
and
 
services
100.0
Wärtsilä
 
Voyage
 
Limited
Ireland
Sales
 
and
 
services
100.0
Wärtsilä
 
APSS
 
Srl
Italy
Sales
 
and
 
services
100.0
Wärtsilä
 
Italia
 
S.p.A.
Italy
Production,
 
sales
 
and
 
services
100.0
Trident
 
Italia
 
Srl
Italy
Sales
 
and
 
services
100.0
Wärtsilä
 
Moss
 
AS
Norway
Production,
 
sales
 
and
 
services
100.0
Wärtsilä
 
Norway
 
AS
Norway
Production,
 
sales
 
and
 
services
100.0
Wärtsilä
 
Gas
 
Solutions
 
Norway
 
AS.
Norway
Sales
 
and
 
services
100.0
Wärtsilä
 
Valmarine
 
AS
Norway
Sales
 
and
 
services
100.0
Wärtsilä
 
Baltic
 
Design
 
Centre
 
Sp.z.o.o.
Poland
Sales
 
and
 
services
100.0
Wärtsilä
 
Polska
 
Sp.z.o.o.
Poland
Sales
 
and
 
services
100.0
Wärtsilä
 
Voyage
 
Poland
 
sp.
 
z.o.o.
Poland
Sales
 
and
 
services
100.0
Wärtsilä
 
Portugal
 
S.A.
Portugal
Sales
 
and
 
services
100.0
Wärtsilä
 
Vostok,
 
LLC
Russia
Sales
 
and
 
services
100.0
Transas
 
Navigator
 
Ltd.
 
Russia
Sales
 
and
 
services
100.0
Wärtsilä
 
Digital
 
Technologies,
 
JSC
Russia
Sales
 
and
 
services
100.0
Wärtsilä
 
Ibérica
 
S.A.
Spain
Production,
 
sales
 
and
 
services
100.0
Burriel
 
Navarro
 
S.L.
Spain
Sales
 
and
 
services
100.0
Trident
 
Las
 
Palmas
 
S.L.
Spain
Sales
 
and
 
services
100.0
Wärtsilä
 
Sweden
 
AB
Sweden
Production,
 
sales
 
and
 
services
100.0
Wärtsilä
 
Voyage
 
Sweden
 
AB
Sweden
Sales
 
and
 
services
100.0
Wärtsilä
 
Services
 
Switzerland
 
AG
Switzerland
Sales
 
and
 
services
100.0
Quantiparts
 
B.V.
The
 
Netherlands
Sales
 
and
 
services
100.0
Wärtsilä
 
Netherlands
 
B.V.
The
 
Netherlands
Production,
 
sales
 
and
 
services
100.0
Trident
 
B.V.
The
 
Netherlands
Sales
 
and
 
services
100.0
Wärtsilä
 
Voyage
 
Netherlands
 
BV
The
 
Netherlands
Sales
 
and
 
services
100.0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
 
 
The
Americas
Wärtsilä
 
Argentina
 
S.A.
Argentina
Sales
 
and
 
services
100.0
Wärtsilä
 
Brasil
 
Ltda.
Brazil
Production,
 
sales
 
and
 
services
100.0
Wärtsilä
 
Canada
 
Inc.
Canada
Sales
 
and
 
services
100.0
Wärtsilä
 
Chile
 
Ltda.
Chile
Sales
 
and
 
services
100.0
Wärtsilä
 
Colombia
 
S.A.
Colombia
Sales
 
and
 
services
100.0
Wärtsilä
 
Dominicana
 
Inc.
Dominican
Republic
Sales
 
and
 
services
100.0
Wärtsilä
 
Ecuador
 
S.A.
Ecuador
Sales
 
and
 
services
100.0
Wärtsilä
 
Guatemala
 
S.A.
Guatemala
Sales
 
and
 
services
100.0
Wärtsilä
 
Operations
 
Guyana
 
Inc.
Guyana
Sales
 
and
 
services
100.0
Wärtsilä
 
de
 
Mexico
 
S.A.
 
de
 
C.V.
Mexico
Sales
 
and
 
services
100.0
Wärtsilä
 
Panama
 
Services
 
S.A.
Panama
Sales
 
and
 
services
100.0
Wärtsilä
 
Peru
 
S.A.C.
Peru
Sales
 
and
 
services
100.0
Wärtsilä
 
Caribbean,
 
Inc.
Puerto
 
Rico
Sales
 
and
 
services
100.0
Wärtsilä
 
Uruguay
 
S.A.
Uruguay
Sales
 
and
 
services
100.0
American
 
Hydro
 
Corporation
USA
Sales
 
and
 
services
100.0
Guidance
 
Marine
 
LLC
USA
Sales
 
and
 
services
100.0
Wärtsilä
 
Defence
 
Inc.
USA
Sales
 
and
 
services
100.0
Wärtsilä
 
Dynamic
 
Positioning
 
Inc.
USA
Sales
 
and
 
services
100.0
Wärtsilä
 
North
 
America,
 
Inc.
USA
Sales
 
and
 
services
100.0
LOCK
 
-N
 
-STITCH
 
Inc.
USA
Sales
 
and
 
services
100.0
Wartsila
 
Voyage
 
Americas
 
Inc
USA
Sales
 
and
 
services
100.0
Asia
PT.
 
Wärtsilä
 
Indonesia
Indonesia
Sales
 
and
 
services
100.0
Wärtsilä
 
Azerbaijan
 
LLC
Azerbaijan
Sales
 
and
 
services
100.0
Wärtsilä
 
Bangladesh
 
Ltd.
Bangladesh
Sales
 
and
 
services
100.0
Wärtsilä
 
SAM
 
Electronics
 
(Taizhou)
 
Co.,
 
Ltd.
China
Sales
 
and
 
services
100.0
Wärtsilä
 
Propulsion
 
(Wuxi)
 
Co.
 
Ltd.
China
Production,
 
sales
 
and
 
services
100.0
Wärtsilä
 
Services
 
(Shanghai)
 
Co.
 
Ltd.
China
Sales
 
and
 
services
100.0
Wärtsilä
 
Ship
 
Design
 
(Shanghai)
 
Co.,
 
Ltd
China
Sales
 
and
 
services
100.0
Wärtsilä
 
Suzhou
 
Ltd.
China
Production,
 
sales
 
and
 
services
100.0
Wärtsilä
 
-CME
 
Zhenjiang
 
Propeller
 
Co.
 
Ltd.
China
Production,
 
sales
 
and
 
services
55.0
Wärtsilä
 
Voyage
 
(Shanghai)
 
Co.
 
Ltd.
Hong
 
Kong
Sales
 
and
 
services
100.0
Wärtsilä
 
China
 
Ltd.
Hong
 
Kong
Sales
 
and
 
services
100.0
Wärtsila
 
India
 
Private
 
Ltd.
India
Production,
 
sales
 
and
 
services
100.0
Wärtsilä
 
Japan
 
Ltd.
Japan
Production,
 
sales
 
and
 
services
100.0
Wärtsilä
 
Malaysia
 
Sdn.
 
Bhd.
Malaysia
Sales
 
and
 
services
100.0
Wärtsilä
 
Myanmar
Myanmar
Sales
 
and
 
services
100.0
Wärtsilä
 
Pakistan
 
(Pvt.)
 
Ltd.
Pakistan
Sales
 
and
 
services
100.0
Wärtsilä
 
Philippines
 
Inc.
Philippines
Sales
 
and
 
services
100.0
Wärtsilä
 
Doha
 
L.L.C.
Qatar
Sales
 
and
 
services
100.0
Wärtsilä
 
Power
 
Contracting
 
Company
 
Ltd.
Saudi
 
Arabia
Sales
 
and
 
services
60.0
Guidance
 
Marine
 
Pte
 
Ltd
Singapore
Sales
 
and
 
services
100.0
Wärtsilä
 
Singapore
 
Pte
 
Ltd
Singapore
Sales
 
and
 
services
100.0
Wärtsilä
 
Voyage
 
Pacific
 
Pte
 
Ltd
Singapore
Sales
 
and
 
services
100.0
Wärtsilä
 
Korea
 
Ltd.
South
 
Korea
Sales
 
and
 
services
100.0
Wärtsilä
 
Lanka
 
(PVT)
 
Ltd
Sri
 
Lanka
Sales
 
and
 
services
100.0
Wärtsilä
 
Taiwan
 
Ltd.
Taiwan
Sales
 
and
 
services
100.0
Wärtsilä
 
-Enpa
 
A.S.
Turkey
Sales
 
and
 
services
51.0
Wärtsilä
 
Gulf
 
FZE
United
 
Arab
Emirates
Sales
 
and
 
services
100.0
Wärtsilä
 
Hamworthy
 
Middle
 
East
 
(FZE)
United
 
Arab
Emirates
Sales
 
and
 
services
100.0
Wärtsilä
 
LLC
United
 
Arab
Emirates
Sales
 
and
 
services
100.0
Wärtsilä
 
Ships
 
Repairing
 
&
 
Maintenance
 
LLC
United
 
Arab
Emirates
Sales
 
and
 
services
100.0
Wärtsilä
 
Voyage
 
Middle
 
East
 
DMCEST
 
United
 
Arab
Emirates
Sales
 
and
 
services
100.0
Wärtsilä
 
(Vietnam)
 
Company
 
Limited
Vietnam
Sales
 
and
 
services
100.0
Other
Wärtsilä
 
Australia
 
Pty
 
Ltd.
Australia
Sales
 
and
 
services
100.0
Wärtsilä
 
Burkina
 
Faso
Burkina
 
Faso
Sales
 
and
 
services
100.0
Wärtsilä
 
Central
 
Africa
 
Plc
Cameroon
Sales
 
and
 
services
100.0
Wärtsilä
 
Egypt
 
Power
 
S.A.E
Egypt
Sales
 
and
 
services
100.0
Wärtsilä
 
Central
 
Africa
 
Gabon
Gabon
Sales
 
and
 
services
100.0
Wärtsilä
 
West
 
Africa
 
Guinea
 
S.A.
Guinea
Sales
 
and
 
services
100.0
Wärtsilä
 
Eastern
 
Africa
 
Limited
Kenya
Sales
 
and
 
services
100.0
Wärtsilä
 
Mauritanie
 
SA
Mauritania
Sales
 
and
 
services
100.0
Wärtsilä
 
Mocambique
 
LDA
Mozambique
Sales
 
and
 
services
100.0
Wärtsilä
 
Muscat
 
LLC
Oman
Sales
 
and
 
services
100.0
Wärtsilä
 
New
 
Zealand
 
Ltd
New
 
Zealand
Sales
 
and
 
services
100.0
Wärtsilä
 
Marine
 
&
 
Power
 
Services
 
Nigeria
 
Limited
Nigeria
Sales
 
and
 
services
100.0
Wärtsilä
 
PNG
 
Ltd
Papua
 
New
Guinea
Sales
 
and
 
services
100.0
Wärtsilä
 
West
 
Africa
 
S.A.
Senegal
Sales
 
and
 
services
100.0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
 
 
Wärtsilä
 
Southern
 
Africa
 
(Pty)
 
Ltd.
South
 
Africa
Sales
 
and
 
services
100.0
Wärtsilä
 
Tanzania
 
Ltd
Tanzania
Sales
 
and
 
services
100.0
Wärtsilä
 
Uganda
 
Ltd.
Uganda
Sales
 
and
 
services
100.0
 
Non-controlling
 
interests
 
are
 
not
 
significant
 
in
 
the
 
Group's
 
activities
 
and
 
cash
 
flows
 
in
 
individual
 
subsidiaries.
 
The
 
list
 
excludes
 
subsidiaries,
 
which
 
do
 
not
 
have
 
a
 
significant
 
impact
 
on
 
the
 
profit
 
or
 
assets
 
of
 
the
 
Group.
 
A
complete
 
list
 
of
 
shares
 
and
 
securities
 
in
 
accordance
 
with
 
the
 
Finnish
 
Accounting
 
Ordinance
 
is
 
included
 
in
 
the
official
 
financial
 
statements
 
of
 
the
 
parent
 
company
 
prepared
 
in
 
accordance
 
with
 
the
 
Finnish
 
Accounting
Standards
 
(FAS).
 
6.6.
 
EXCHANGE
 
RATES
Accounting
 
principles
Translating
 
the
 
transactions
 
in
 
foreign
 
currencies
The
 
items
 
included
 
in
 
the
 
financial
 
statements
 
are
 
initially
 
recognised
 
in
 
the
 
functional
 
currency,
 
which
 
is
defined
 
for
 
each
 
Group
 
company
 
based
 
on
 
its
 
primary
 
economic
 
environment.
 
The
 
presentation
 
currency
 
of
the
 
consolidated
 
financial
 
statements
 
is
 
the
 
euro,
 
which
 
is
 
also
 
the
 
functional
 
and
 
presentation
 
currency
 
of
Wärtsilä
 
Corporation.
Foreign
 
subsidiaries
The
 
income
 
and
 
expenses
 
for
 
statements
 
of
 
income
 
and
 
statements
 
of
 
comprehensive
 
income
 
of
 
foreign
subsidiaries
 
are
 
translated
 
into
 
euros
 
at
 
the
 
quarterly
 
average
 
exchange
 
rates.
 
Statements
 
of
 
financial
position
 
are
 
translated
 
into
 
euros
 
at
 
the
 
exchange
 
rates
 
prevailing
 
at
 
the
 
end
 
of
 
the
 
reporting
 
period.
 
The
translation
 
of
 
the
 
profit
 
for
 
the
 
reporting
 
period
 
and
 
other
 
comprehensive
 
income
 
using
 
different
 
exchange
rates
 
in
 
the
 
statement
 
of
 
comprehensive
 
income
 
and
 
the
 
statement
 
of
 
financial
 
position
 
causes
 
translation
differences,
 
which
 
are
 
recognised
 
in
 
equity
 
and
 
in
 
other
 
comprehensive
 
income
 
as
 
change.
 
Translation
differences
 
of
 
foreign
 
subsidiaries’
 
acquisition
 
cost
 
eliminations
 
and
 
post
 
-acquisition
 
profits
 
and
 
losses
 
are
recognised
 
in
 
other
 
comprehensive
 
income
 
and
 
are
 
presented
 
as
 
a
 
separate
 
item
 
in
 
equity.
 
The
 
goodwill
generated
 
in
 
the
 
acquisition
 
of
 
foreign
 
entities
 
and
 
their
 
fair
 
value
 
adjustments
 
of
 
assets
 
and
 
liabilities
 
are
considered
 
as
 
assets
 
and
 
liabilities
 
of
 
foreign
 
entities,
 
which
 
are
 
translated
 
into
 
euros
 
using
 
the
 
exchange
rates
 
prevailing
 
at
 
the
 
end
 
of
 
the
 
reporting
 
period.
 
When
 
a
 
foreign
 
subsidiary
 
is
 
sold,
 
the
 
accumulated
exchange
 
rate
 
differences
 
recognised
 
in
 
the
 
equity
 
related
 
to
 
the
 
subsidiary
 
are
 
recognised
 
in
 
the
 
statement
of
 
income
 
as
 
a
 
part
 
of
 
the
 
gain
 
or
 
loss
 
on
 
sale.
Transactions
 
and
 
balances
 
in
 
foreign
 
currencies
Transactions
 
denominated
 
in
 
a
 
foreign
 
currency
 
are
 
translated
 
into
 
the
 
functional
 
currency
 
using
 
the
exchange
 
rate
 
prevailing
 
at
 
the
 
dates
 
of
 
the
 
transactions.
 
Receivables
 
and
 
liabilities
 
are
 
translated
 
at
 
the
exchange
 
rate
 
prevailing
 
at
 
the
 
end
 
of
 
the
 
reporting
 
period.
 
Exchange
 
rate
 
gains
 
and
 
losses
 
related
 
to
 
trade
receivables
 
and
 
liabilities
 
are
 
reported
 
on
 
the
 
applicable
 
line
 
in
 
the
 
statement
 
of
 
income
 
and
 
are
 
included
 
in
the
 
operating
 
result.
 
Exchange
 
rate
 
differences
 
related
 
to
 
financial
 
assets
 
and
 
financial
 
liabilities
 
are
reported
 
as
 
financial
 
items
 
in
 
the
 
statement
 
of
 
income,
 
except
 
exchange
 
rate
 
differences
 
related
 
to
 
non-
current
 
debt
 
that
 
is
 
part
 
of
 
the
 
Group's
 
net
 
investment
 
in
 
a
 
subsidiary.
 
Those
 
are
 
recognised
 
in
 
other
comprehensive
 
income
 
and
 
reported
 
as
 
translation
 
differences
 
in
 
equity.
 
In
 
the
 
consolidated
 
financial
 
statements,
 
there
 
are
 
approximately
 
60
 
currencies
 
consolidated.
 
The
 
most
significant
 
currencies
 
are
 
presented
 
here.
 
Closing
 
rates
Average
 
rates
31
 
December
2020
31
 
December
2019
2020
2019
AED
UAE
 
Dirham
4.50689
4.12602
4.19169
4.11203
AUD
Australian
 
Dollar
1.58960
1.59950
1.65540
1.61059
BRL
Brazilian
 
Real
6.37350
4.51570
5.89001
4.41354
CHF
Swiss
 
Franc
1.08020
1.08540
1.07031
1.11683
CNY
Yuan
 
Renminbi
8.02250
7.82050
7.87084
7.73388
DKK
Danish
 
Krone
7.44090
7.47150
7.45440
7.46607
GBP
Pound
 
Sterling
0.89903
0.85080
0.88921
0.87731
IDR
Indonesian
 
Rupiah
17,240.76000
15,595.60000
16,619.78000
15,835.95000
INR
Indian
 
Rupee
89.66050
80.18700
84.57954
78.85014
JPY
Yen
126.49000
121.94000
121.77545
122.05637
NOK
Norwegian
 
Krone
10.47030
9.86380
10.72476
9.84967
RUB
Russian
 
Ruble
91.46710
69.95630
82.64545
72.45934
SAR
Saudi
 
Riyal
4.60347
4.21365
4.28208
4.19884
SEK
Swedish
 
Krona
10.03430
10.44680
10.48813
10.58666
SGD
Singapore
 
Dollar
1.62180
1.51110
1.57357
1.52721
USD
US
 
Dollar
1.22710
1.12340
1.14128
1.11960
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
 
 
 
7.
 
OTHER
 
NOTES
7.1.
 
COLLATERAL,
 
CONTINGENT
 
LIABILITIES,
 
AND
 
OTHER
 
COMMITMENTS
Accounting
 
principles
Contingent
 
liabilities
 
are
 
possible
 
obligations
 
resulting
 
from
 
previous
 
events,
 
the
 
existence
 
of
 
which
 
will
 
only
be
 
ascertained
 
once
 
the
 
uncertain
 
event
 
that
 
is
 
beyond
 
the
 
Group’s
 
control
 
materialises.
 
Existing
obligations
 
that
 
are
 
not
 
likely
 
to
 
require
 
the
 
fulfilment
 
of
 
a
 
payment
 
obligation,
 
or
 
the
 
amount
 
of
 
which
 
cannot
be
 
reliably
 
determined,
 
are
 
also
 
considered
 
contingent
 
liabilities.
 
2020
2019
MEUR
Debt
 
in
 
the
 
statement
 
of
 
financial
 
position
Collateral
Debt
 
in
 
the
 
statement
 
of
 
financial
 
position
Collateral
Mortgages
 
given
 
as
 
collateral
 
for
 
liabilities
 
and
commitments
Other
 
commitments
13
10
18
10
Total
13
10
18
10
 
Chattel
 
mortgages
 
and
 
other
 
pledges
 
and
 
securities
given
 
as
 
collateral
 
for
 
liabilities
 
and
 
commitments
Loans
 
from
 
credit
 
institutions
3
5
1
Other
 
commitments
17
21
Total
3
17
5
22
 
MEUR
 
2020
2019
Guarantees
 
and
 
contingent
 
liabilities
on
 
behalf
 
of
 
Group
 
companies
887
718
Total
887
718
Nominal
 
amounts
 
of
 
lease
 
liabilities
Low
 
-value
 
lease
 
liabilities
7
3
Short
 
-term
 
lease
 
liabilities
3
5
Leases
 
not
 
yet
 
commenced,
 
but
 
to
 
which
 
Wärtsilä
 
is
committed
191
143
Total
201
151
 
7.2.
 
RELATED
 
PARTY
 
DISCLOSURES
Related
 
parties
 
comprise
 
the
 
parent
 
company,
 
subsidiaries,
 
the
 
associated
 
companies
 
,
 
and
 
joint
 
ventures.
Related
 
parties
 
also
 
include
 
the
 
Board
 
of
 
Directors,
 
the
 
President
 
and
 
CEO,
 
the
 
Board
 
of
 
Management,
 
their
family
 
members,
 
and
 
entities
 
controlled
 
directly
 
or
 
indirectly
 
by
 
them.
 
Management
 
remuneration
 
Benefits
 
recognised
 
in
 
the
 
statement
of
 
income
TEUR
2020
2019
President
 
and
 
CEO
Salaries
 
and
 
other
 
short
 
-term
 
benefits
1,177
894
Statutory
 
pension
 
costs
184
123
Voluntary
 
pension
 
costs
179
179
Other
 
members
 
of
 
the
 
Board
 
of
 
Management
Salaries
 
and
 
other
 
short
 
-term
 
benefits
3,225
2,371
Statutory
 
pension
 
costs
267
305
Voluntary
 
pension
 
costs
247
342
Total
5,279
4,214
Board
 
of
 
Directors
 
on
 
31
 
December
 
2020
Tom
 
Johnstone,
 
Chairman
163
117
Markus
 
Rauramo,
 
Deputy
 
Chairman
135
97
Maarit
 
Aarni-Sirviö,
 
member
100
92
Karen
 
Bomba,
 
member
79
Karin
 
Falk,
 
member
80
77
Johan
 
Forssell,
 
member
85
81
Risto
 
Murto,
 
member
90
91
Mats
 
Rahmström,
 
member
79
Board
 
of
 
Directors,
 
until
 
5
 
March
 
2020
Kaj-Gustaf
 
Bergh,
 
member
2
81
Mikael
 
Lilius,
 
member
3
172
Total
814
806
Management
 
remuneration,
 
total
6,093
5,020
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
 
 
The
 
holdings
 
of
 
Wärtsilä
 
shares
 
of
 
the
 
President
 
and
 
CEO,
 
and
 
the
 
members
 
of
 
the
 
Board
 
of
 
Directors
 
and
Board
 
of
 
Management
 
at
 
year
 
-end
 
were
 
238,875
 
shares
 
(289,036).
 
The
 
President
 
and
 
CEO
 
is
 
entitled
 
to
 
retire
 
on
 
reaching
 
63
 
years
 
of
 
age.
 
The
 
members
 
of
 
the
 
Board
 
of
Management
 
are
 
entitled
 
to
 
retire
 
on
 
reaching
 
the
 
statutory
 
retirement
 
age.
 
One
 
member
 
of
 
the
 
Board
 
of
Management
 
is
 
entitled
 
to
 
retire
 
earlier,
 
on
 
reaching
 
60
 
years
 
of
 
age.
 
The
 
Group
 
has
 
no
 
loan
 
receivables
 
from
the
 
executive
 
management
 
or
 
the
 
Board
 
of
 
Directors.
 
No
 
pledges
 
or
 
other
 
commitments
 
have
 
been
 
given
 
on
behalf
 
of
 
management
 
or
 
shareholders.
 
Business
 
transactions
 
with
 
the
 
associated
 
companies
 
and
 
joint
 
ventures
 
MEUR
2020
2019
Sales
 
to
 
the
 
associates
 
and
 
joint
 
ventures
23
31
Purchases
 
from
 
the
 
associates
 
and
 
joint
 
ventures
67
35
Receivables
 
from
 
the
 
associates
 
and
 
joint
 
ventures
6
8
Advances
 
paid
 
to
 
the
 
associates
 
and
 
joint
 
ventures
4
2
Payables
 
to
 
the
 
associates
 
and
 
joint
 
ventures
3
5
 
Detailed
 
financial
 
information
 
on
 
the
 
associated
 
companies
 
and
 
joint
 
ventures
 
is
 
presented
 
in
 
Note
 
6.4.
Investments
 
in
 
associates
 
and
 
joint
 
ventures.
 
7.3.
 
AUDITORS’
 
FEES
 
AND
 
SERVICES
The
 
following
 
remuneration
 
was
 
paid
 
to
 
auditors
 
and
 
accounting
 
firms
 
for
 
audits
 
based
 
on
 
applicable
 
legislation
and
 
for
 
other
 
services.
 
In
 
2020,
 
the
 
AGM
 
appointed
 
the
 
audit
 
firm
 
PricewaterhouseCoopers
 
Oy
 
as
 
Wärtsilä
 
Corporation's
 
auditor.
PricewaterhouseCoopers
 
Oy
 
has
 
provided
 
non
 
-
 
audit
 
services
 
totalling
 
EUR
 
0.4
 
million
 
to
 
entities
 
of
 
Wärtsilä
Group.
 
These
 
services
 
included
 
tax
 
services
 
(EUR
 
0.3
 
million
 
)
 
and
 
other
 
services
 
(EUR
 
0.1
 
million
 
).
 
2020
2019
MEUR
PwC
Others
PwC
Others
Audit
4.2
0.4
4.3
0.5
Tax
 
advisory
0.3
0.2
0.2
0.3
Other
 
services
0.1
0.1
0.3
Total
4.6
0.7
4.8
0.8
 
 
 
7.4.
 
EVENTS
 
AFTER
 
THE
 
BALANCE
 
SHEET
 
DATE
In
 
January
 
2021,
 
Wärtsilä
 
announced
 
the
 
divestment
 
of
 
100%
 
of
 
the
 
shares
 
in
 
its
 
Entertainment
 
business,
Wärtsilä
 
Funa
 
GmbH,
 
to
 
Videlio
 
SA,
 
a
 
French
 
public
 
limited
 
company.
 
Entertainment
 
is
 
engaged
 
in
 
the
 
field
 
of
design,
 
fabrication,
 
engineering
 
and
 
integration
 
of
 
entertainment
 
systems,
 
illumination,
 
light
 
control,
 
cabin
control,
 
broadcast
 
and
 
digital
 
audio
 
distribution
 
and
 
announcement
 
systems
 
for
 
cruise
 
vessels
 
and
entertainment
 
parks.
 
The
 
annual
 
revenues
 
were
 
approximately
 
EUR
 
50
 
million
 
in
 
2020.
 
The
 
ev
ent
 
is
 
not
 
expected
 
to
 
have
 
a
 
material
 
impact
 
on
 
the
 
profit
 
for
 
the
 
financial
 
period
 
2021.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
 
 
 
 
PARENT
 
COMPANY
 
FINANCIAL
STATEMENTS
PARENT
 
COMPANY
 
INCOME
 
STATEMENT
MEUR
2020
2019
Note
Other
 
operating
 
income
93
89
1
Personnel
 
expenses
-38
-37
2
Depreciation,
 
amortisation
 
and
 
impairments
-5
-4
3
Other
 
operating
 
expenses
-89
-108
Operating
 
result
 
-39
-60
Financial
 
income
 
and
 
expenses
4
Income
 
from
 
financial
 
assets
301
304
Interest
 
income
 
and
 
other
 
financial
 
income
64
90
Exchange
 
gains
 
and
 
losses
-2
1
Interest
 
expenses
 
and
 
other
 
financial
 
expenses
-58
-91
305
304
Result
 
before
 
appropriations
 
and
 
taxes
266
243
Group
 
contribution
2
Result
 
before
 
taxes
268
243
Income
 
taxes
-3
-3
5
Result
 
for
 
the
 
financial
 
period
265
240
 
 
 
PARENT
 
COMPANY
 
BALANCE
 
SHEET
MEUR
2020
2019
Note
ASSETS
Fixed
 
assets
6
Intangible
 
assets
Other
 
long-term
 
expenditure
8
10
Intangable
 
assets
 
and
 
construction
 
in
 
progress
1
1
9
11
Tangible
 
assets
Land
 
and
 
water
2
7
Machinery,
 
equipment
 
and
 
other
 
tangible
 
assets
6
6
9
13
Financial
 
assets
Shares
 
in
 
Group
 
companies
950
950
Other
 
shares
 
and
 
securities
2
1
951
951
Total
 
fixed
 
assets
969
974
Non
 
-current
 
receivables
Receivables
 
from
 
Group
 
companies
90
100
7
Loan
 
receivables
1
1
91
101
Current
 
receivables
Trade
 
receivables
1
Receivables
 
from
 
Group
 
companies
1,846
2,193
8
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
 
 
Other
 
receivables
1
1
Prepaid
 
expenses
 
and
 
accrued
 
income
41
29
9
1,890
2,224
Cash
 
and
 
bank
 
balances
699
113
Total
 
current
 
assets
2,680
2,438
Assets
3,649
3,413
 
MEUR
2020
2019
Note
EQUITY
 
AND
 
LIABILITIES
Equity
10
Share
 
capital
336
336
Share
 
premium
 
reserve
61
61
Retained
 
earnings
709
754
Result
 
for
 
the
 
financial
 
period
265
240
Total
 
equity
1,371
1,391
Accumulated
 
appropriations
Depreciation
 
difference
1
1
Provisions
13
18
Liabilities
11
Non
 
-current
Loans
 
from
 
credit
 
institutions
953
847
953
847
Current
Loans
 
from
 
credit
 
institutions
130
51
Trade
 
payables
6
14
Liabilities
 
to
 
Group
 
companies
1,129
1,052
13
Other
 
current
 
liabilities
1
2
Accrued
 
expenses
 
and
 
deferred
 
income
44
36
12
1,310
1,155
Total
 
liabilities
2,263
2,003
Equity
 
and
 
liabilities
3,649
3,413
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
 
 
 
PARENT
 
COMPANY
 
CASH
 
FLOW
STATEMENT
MEUR
2020
2019
Cash
 
flow
 
from
 
operating
 
activities:
Result
 
before
 
appropriations
 
and
 
taxes
266
243
Adjustments
 
for:
Depreciation
 
and
 
amortisation
5
4
Gains
 
and
 
losses
 
on
 
sale
 
of
 
intangible
 
and
 
tangible
 
assets
-2
Financial
 
income
 
and
 
expenses
-305
-304
Cash
 
flow
 
before
 
changes
 
in
 
working
 
capital
-36
-56
Changes
 
in
 
working
 
capital:
Assets,
 
non-interest
 
-bearing,
 
increase
 
(-)
 
/
 
decrease
 
(+)
-14
11
Liabilities,
 
non-interest
 
-bearing,
 
increase
 
(+)
 
/
 
decrease
 
(-)
3
-45
-11
-34
Cash
 
flow
 
from
 
operating
 
activities
 
before
 
financial
 
items
 
and
taxes
-47
-90
Interest
 
and
 
other
 
financial
 
expenses
-60
-89
Dividends
 
received
 
from
 
operating
 
activities
301
304
Interest
 
and
 
other
 
financial
 
income
 
from
 
operating
 
activities
64
89
Income
 
taxes
 
paid
-3
-8
301
295
Cash
 
flow
 
from
 
operating
 
activities
254
205
Cash
 
flow
 
from
 
investing
 
activities:
Investments
 
in
 
tangible
 
and
 
intangible
 
assets
-3
-2
Proceeds
 
from
 
sale
 
of
 
tangible
 
and
 
intangible
 
assets
6
Cash
 
flow
 
from
 
investing
 
activities
3
-2
Cash
 
flow
 
after
 
investing
 
activities
257
203
Cash
 
flow
 
from
 
financing
 
activities:
Loans
 
receivables,
 
increase
 
(-)
 
/
 
decrease
 
(+)
355
18
Current
 
loans,
 
increase
 
(+)
 
/
 
decrease
 
(-)
63
-284
Proceeds
 
from
 
non-current
 
borrowing
245
150
Repayments
 
and
 
other
 
changes
 
of
 
non-current
 
loans
-51
-56
Group
 
contributions
76
Dividends
 
paid
-284
-284
Cash
 
flow
 
from
 
financing
 
activities
329
-381
Change
 
in
 
cash
 
and
 
bank
 
balances,
 
increase
 
(+)
 
/
 
decrease
 
(-)
586
-178
Cash
 
and
 
bank
 
at
 
beginning
 
of
 
period
113
291
Cash
 
and
 
bank
 
at
 
end
 
of
 
period
699
113
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
 
 
 
 
 
ACCOUNTING
 
PRINCIPLES
 
FOR
 
THE
PARENT
 
COMPANY
The
 
financial
 
statements
 
of
 
the
 
parent
 
company,
 
Wärtsilä
 
Corporation,
 
have
 
been
 
prepared
 
in
 
accordance
 
with
the
 
provisions
 
of
 
the
 
Finnish
 
Accounting
 
Standards
 
(FAS).
 
The
 
preparation
 
of
 
the
 
financial
 
statements
 
requires
 
management,
 
in
 
compliance
 
with
 
the
 
regulations
 
in
 
force
and
 
good
 
accounting
 
practice,
 
to
 
make
 
estimates
 
and
 
assumptions
 
that
 
affect
 
the
 
measurement
 
and
 
timing
 
of
the
 
reported
 
information.
 
Actual
 
results
 
may
 
differ
 
from
 
these
 
estimates.
 
Transactions
 
denominated
 
in
 
foreign
 
currencies
 
and
 
derivatives
Business
 
transactions
 
in
 
foreign
 
currencies
 
are
 
recorded
 
at
 
the
 
rates
 
of
 
exchange
 
prevailing
 
on
 
the
 
transaction
date.
 
Receivables
 
and
 
payables
 
on
 
the
 
balance
 
sheet
 
date
 
are
 
valued
 
at
 
the
 
exchange
 
rates
 
prevailing
 
on
 
that
date.
 
Exchange
 
gains
 
and
 
losses
 
related
 
to
 
business
 
operations
 
are
 
treated
 
as
 
adjustments
 
to
 
other
 
operating
income
 
and
 
operating
 
expenses.
 
Exchange
 
gains
 
and
 
losses
 
related
 
to
 
financing
 
operations
 
are
 
entered
 
under
financial
 
income
 
and
 
expenses.
 
Derivatives
 
are
 
measured
 
at
 
fair
 
value.
 
Open
 
currency
 
derivatives,
 
including
 
interest
 
components,
 
are
 
valued
at
 
the
 
balance
 
sheet
 
date.
 
The
 
fair
 
value
 
of
 
interest
 
rate
 
swaps
 
is
 
calculated
 
by
 
discounting
 
the
 
future
 
cash
flows.
 
Derivative
 
changes
 
in
 
fair
 
value
 
are
 
immediately
 
recognised
 
in
 
financial
 
income
 
or
 
expenses
 
in
 
the
statement
 
of
 
income.
 
Research
 
and
 
development
 
costs
Research
 
and
 
development
 
costs
 
are
 
expensed
 
in
 
the
 
financial
 
period
 
in
 
which
 
they
 
occur.
 
Receivables
Receivables
 
are
 
valued
 
to
 
acquisition
 
cost
 
or
 
to
 
a
 
lower
 
probable
 
value.
 
Fixed
 
assets
 
and
 
depreciation
 
and
 
amortisation
Fixed
 
assets
 
are
 
valued
 
in
 
the
 
balance
 
sheet
 
at
 
their
 
direct
 
acquisition
 
cost
 
less
 
accumulated
 
depreciation
 
and
amortisastion.
 
Certain
 
land
 
areas
 
also
 
include
 
revaluations.
 
Depreciation
 
and
 
amortisation
 
is
 
based
 
on
 
the
 
following
 
useful
 
lives:
Other
 
long
-
term
 
expenditure
 
3
-
10
 
years
 
Buildings
 
 
 
20
-
40
 
years
 
Machinery
 
and
 
equipment
 
5
-
20
 
years
 
 
Leasing
Lease
 
payments
 
are
 
treated
 
as
 
rentals.
 
Provisions
Provisions
 
in
 
the
 
balance
 
sheet
 
comprise
 
those
 
items
 
which
 
the
 
company
 
is
 
committed
 
to
 
covering
 
either
through
 
agreements
 
or
 
otherwise,
 
but
 
which
 
are
 
not
 
yet
 
realised.
 
Changes
 
to
 
provisions
 
are
 
included
 
in
 
the
income
 
statem
 
ent.
 
Income
 
taxes
Income
 
taxes
 
in
 
the
 
income
 
statement
 
include
 
taxes
 
calculated
 
for
 
the
 
financial
 
year
 
based
 
on
 
Finnish
 
tax
provisions,
 
as
 
well
 
as
 
adjustments
 
to
 
taxes
 
in
 
prior
 
years.
 
Taxes
 
allocated
 
to
 
extraordinary
 
items
 
are
 
shown
 
in
the
 
notes
 
to
 
the
 
financial
 
statements.
 
Dividends
Dividends
 
proposed
 
by
 
the
 
Board
 
of
 
Directors
 
are
 
not
 
recorded
 
in
 
the
 
financial
 
statements
 
until
 
they
 
have
 
been
approved
 
by
 
the
 
Annual
 
General
 
Meeting.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
 
 
 
NOTES
 
TO
 
THE
 
PARENT
 
COMPANY
 
FINANCIAL
 
STATEMENTS
1.
 
OTHER
 
OPERATING
 
INCOME
MEUR
2020
2019
Rental
 
income
3
3
Services
 
to
 
Group
 
companies
88
85
Profit
 
on
 
sales
 
of
 
fixed
 
assets
2
Other
1
Total
93
89
 
2.
 
PERSONNEL
 
EXPENSES
MEUR
2020
2019
Wages
 
and
 
salaries
-32
-30
Pension
 
costs
-5
-5
Other
 
compulsory
 
personnel
 
costs
-1
-1
Total
-38
-37
 
Salaries
 
and
 
remunerations
 
paid
 
to
 
senior
 
management
Salaries
 
and
 
remunerations
 
paid
 
to
 
the
 
President
 
and
 
CEO
 
and
 
members
 
of
 
the
 
Board
 
of
 
Directors
 
was
 
EUR
 
2
 
million
 
(2).
 
 
The
 
President
 
and
 
CEO
 
has
 
the
 
right
 
to
 
retire
 
at
 
the
 
age
 
of
 
63
 
years.
 
The
 
members
 
of
 
the
 
Board
 
of
Management
 
are
 
entitled
 
to
 
retire
 
on
 
reaching
 
the
 
statutory
 
retirement
 
age.
 
One
 
member
 
of
 
the
 
Board
 
of
Management
 
is
 
entitled
 
to
 
retire
 
earlier,
 
on
 
reaching
 
60
 
years
 
of
 
age.
 
The
 
company's
 
Board
 
of
 
Directors
 
decides
 
the
 
remunerations
 
of
 
the
 
President
 
and
 
CEO
 
and
 
his
 
immediate
subordinates.
 
Additional
 
information
 
about
 
Management
 
remuneration
 
can
 
be
 
found
 
in
 
Consolidated
 
Financial
 
Statements
Note
 
7.2.
 
Related
 
p
 
arty
 
disclosures.
 
Personnel
 
on
 
average
 
during
 
the
 
year
 
was
 
373
 
(392).
 
3.
 
DEPRECIATION
 
AND
 
AMORTISATION
MEUR
2020
2019
Depreciation
 
and
 
amortisation
 
according
 
to
 
plan
Other
 
long-term
 
expenditure
-2
-3
Machinery
 
and
 
equipment
-2
-1
Total
 
depreciation
 
according
 
to
 
plan
-5
-4
Tax
 
depreciations
-5
-4
Depreciation
 
difference
Depreciation
 
difference
 
on
 
1
 
January
1
1
Depreciation
 
difference
 
on
 
31
 
December
 
1
1
 
4.
 
FINANCIAL
 
INCOME
 
AND
 
EXPENSES
MEUR
2020
2019
Dividend
 
income
From
 
Group
 
companies
301
304
Total
301
304
Other
 
interest
 
income
 
From
 
Group
 
companies
27
34
From
 
other
 
companies
1
1
Total
29
35
Other
 
financial
 
income
From
 
Group
 
companies
23
32
From
 
other
 
companies
12
22
Total
35
55
Exchange
 
gains
 
and
 
losses
-2
1
Interest
 
expenses
To
 
Group
 
companies
-4
-6
To
 
other
 
companies
-8
-8
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
 
 
Total
-12
-14
Other
 
financial
 
expenses
To
 
Group
 
companies
-18
-32
To
 
other
 
companies
-28
-45
Total
-46
-77
Financial
 
income
 
and
 
expenses,
 
total
305
304
 
5.
 
INCOME
 
TAXES
MEUR
2020
2019
Income
 
taxes
For
 
the
 
financial
 
period
-3
-3
Total
-3
-3
 
6.
 
FIXED
 
ASSETS
Intangible
 
assets
MEUR
Other
long
 
-term
 
expenditur
es
Intangible
assets
 
and
 
constructio
n
 
in
 
progress
Total
2020
Total
2019
Acquisition
 
cost
 
at
 
1
 
January
 
123
1
124
125
Additions
1
1
2
Disposals
-6
-7
-3
Acquisition
 
cost
 
at
 
31
 
December
117
1
118
124
Accumulated
 
amortisation
 
at
 
1
 
January
 
-113
-113
-113
Accumulated
 
amortisation
 
on
 
disposals
and
 
other
 
changes
6
6
3
Amortisation
 
during
 
the
 
financial
 
period
-2
-2
-3
Accumulated
 
amortisation
 
at
 
31
December
-109
-109
-113
Carrying
 
amount
 
at
 
31
 
December
 
2020
8
1
9
Carrying
 
amount
 
at
 
31
 
December
 
2019
10
1
11
 
Tangible
 
assets
MEUR
Land
 
and
 
water
Buildings
 
and
 
structures
 
Machinery,
 
equipment
 
and
 
other
tangible
 
assets
Total
2020
Total
2019
Acquisition
 
cost
 
at
 
1
 
January
7
2
8
17
17
Additions
2
3
Disposals
-4
-4
Acquisition
 
cost
 
at
 
31
 
December
 
2
2
11
15
17
Accumulated
 
depreciation
 
at
 
1
 
January
 
-2
-3
-4
-3
Amortisation
 
during
 
the
 
financial
 
period
-2
-2
-1
Accumulated
 
depreciation
 
at
 
31
December
-1
-5
-6
-4
Carrying
 
amount
 
at
 
31
 
December
 
2020
2
6
9
Carrying
 
amount
 
at
 
31
 
December
 
2019
7
6
13
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
 
 
 
Shares
 
and
 
securities
MEUR
Shares
 
in
 
Group
 
companies
Shares
 
in
 
other
 
companies
Total
2020
Total
2019
Acquisition
 
cost
 
at
 
1
 
January
950
1
951
951
Acquisition
 
cost
 
at
 
31
 
December
950
2
951
951
Carrying
 
amount
 
at
 
31
 
December
 
2020
950
2
951
Carrying
 
amount
 
at
 
31
 
December
 
2019
950
1
951
 
7.
 
NON-CURRENT
 
RECEIVABLES
MEUR
2020
2019
Receivables
 
from
 
Group
 
companies
Loan
 
receivables
90
100
Total
90
100
 
8.
 
CURRENT
 
RECEIVABLES
 
FROM
 
GROUP
 
COMPANIES
MEUR
2020
2019
Trade
 
receivables
27
24
Loan
 
receivables
1,790
2,135
Derivatives
25
27
Other
 
receivables
2
Prepaid
 
expenses
 
and
 
accrued
 
income
3
7
Total
1,846
2,193
 
9.
 
PREPAID
 
EXPENSES
 
AND
 
ACCRUED
 
INCOME
MEUR
2020
2019
Derivatives
37
24
Other
4
5
Total
41
29
 
10.
 
SHAREHOLDERS’
 
EQUITY
MEUR
2020
2019
Share
 
capital
Share
 
capital
 
on
 
1
 
January
 
336
336
Share
 
capital
 
on
 
31
 
December
336
336
Share
 
premium
 
reserve
Share
 
premium
 
reserve
 
on
 
1
 
January
61
61
Share
 
premium
 
reserve
 
on
 
31
 
December
61
61
Retained
 
earnings
Retained
 
earnings
 
on
 
1
 
January
994
1038
Dividends
 
paid
-284
-284
Result
 
for
 
the
 
financial
 
period
265
240
Retained
 
earnings
 
on
 
31
 
December
974
994
Total
 
shareholders'
 
equity
1371
1391
Distributable
 
equity
974
994
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
 
 
 
11.
 
LIABILITIES
MEUR
2020
2019
Non
 
-current
Interest
 
-bearing
953
847
Total
953
847
Current
Non
 
-interest
 
-bearing
108
96
Interest
 
-bearing
1,202
1,060
Total
1,310
1,155
 
Debt
 
with
 
maturity
 
profile
 
MEUR
2020
2019
Loans
 
from
 
financial
 
institutions:
1,084
899
Current
<1
 
year
130
51
Long
 
-term
 
1-5
 
years
661
519
 
>5
 
years
292
328
Total
1,084
899
 
12.
 
ACCRUED
 
EXPENSES
 
AND
 
DEFERRED
 
INCOME
MEUR
2020
2019
Derivatives
27
23
Personnel
 
costs
9
6
Interest
 
and
 
other
 
financial
 
items
3
3
Other
4
4
Total
44
36
 
13.
 
LIABILITIES
 
TO
 
GROUP
 
COMPANIES
MEUR
2020
2019
Trade
 
payables
13
15
Other
 
current
 
liabilities
1,072
1,008
Derivatives
43
25
Accrued
 
expenses
 
and
 
deferred
 
income
1
4
Total
1,129
1,052
 
14.
 
FINANCIAL
 
ASSETS
 
AND
 
LIABILITIES
 
BY
 
MEASUREMENT
CATEGORY
2020
MEUR
Measured
at
 
amortised
cost
At
 
fair
 
value
 
through
 
the
 
statement
 
of
 
income
Carrying
 
amounts
 
of
 
the
 
statement
 
of
 
financial
 
position
 
items
Fair
 
value
Non
 
-current
 
financial
 
assets
Interest
 
-bearing
 
receivables
 
from
 
Group
 
companies
90
90
90
Other
 
receivables
Current
 
financial
 
assets
Interest
 
-bearing
 
receivables
 
from
 
Group
 
companies
1,790
1,790
1,790
Trade
 
receivables
1
1
1
Trade
 
receivables
 
from
 
Group
 
companies
27
27
27
Derivatives
37
37
37
Derivatives
 
from
 
Group
 
companies
25
25
25
Other
 
receivables
 
from
 
Group
 
companies
3
3
3
Cash
 
equivalents
332
332
332
Cash
 
and
 
bank
367
367
367
Carrying
 
amount
 
by
 
category
2,610
63
2,673
2,673
Non
 
-current
 
financial
 
liabilities
Interest
 
-bearing
 
debt
953
953
963
Current
 
financial
 
liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
 
 
Interest
 
-bearing
 
debt
130
130
130
Interest
 
-bearing
 
debt
 
to
 
Group
 
companies
1,072
1,072
1,072
Trade
 
payables
6
6
6
Trade
 
payables
 
to
 
Group
 
companies
13
13
13
Derivatives
27
27
27
Derivatives
 
to
 
Group
 
companies
43
43
43
Other
 
liabilities
3
3
3
Carrying
 
amount
 
by
 
category
2,177
70
2,247
2,257
 
2019
MEUR
Measured
at
 
amortised
cost
At
 
fair
 
value
 
through
 
the
 
statement
 
of
 
income
Carrying
 
amounts
 
of
 
the
 
statement
 
of
 
financial
 
position
 
items
Fair
 
value
Non
 
-current
 
financial
 
assets
Interest
 
-bearing
 
receivables
 
from
 
Group
 
companies
100
100
100
Other
 
receivables
1
1
1
Current
 
financial
 
assets
Interest
 
-bearing
 
receivables
 
from
 
Group
 
companies
2,135
2,135
2,135
Trade
 
receivables
 
from
 
Group
 
companies
24
24
24
Derivatives
24
24
24
Derivatives
 
from
 
Group
 
companies
27
27
27
Other
 
receivables
 
from
 
Group
 
companies
6
6
6
Cash
 
equivalents
Cash
 
and
 
bank
113
113
113
Carrying
 
amount
 
by
 
category
2,379
51
2,430
2,430
Non
 
-current
 
financial
 
liabilities
Interest
 
-bearing
 
debt
847
847
856
Current
 
financial
 
liabilities
Interest
 
-bearing
 
debt
52
52
52
Interest
 
-bearing
 
debt
 
to
 
Group
 
companies
1,008
1,008
1,008
Trade
 
payables
14
14
14
Trade
 
payables
 
to
 
Group
 
companies
15
15
15
Derivatives
23
23
23
Derivatives
 
to
 
Group
 
companies
25
25
25
Other
 
liabilities
3
3
3
Carrying
 
amount
 
by
 
category
1,940
49
1,988
1,996
 
Information
 
about
 
the
 
fair
 
value
 
hierarchy
 
and
 
valuation
 
principle
 
can
 
be
 
found
 
in
 
Consolidated
 
Financial
Statements
 
Note
 
5.2.
 
Financial
 
assets
 
and
 
liabilities
 
by
 
measurement
 
category.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
 
 
 
15.
 
DERIVATIVE
 
FINANCIAL
 
INSTRUMENTS
2020
MEUR
With
external
financial
institutions
With
 
Group
 
companies
Total
2020
Nominal
 
values
 
of
 
derivative
 
financial
 
instruments
 
Currency
 
forwards,
 
transaction
 
risk
1,649
1,861
3,509
Interest
 
rate
 
swaps
450
130
580
Cross
 
currency
 
swaps
237
237
Total
4,327
Fair
 
values
 
of
 
derivative
 
financial
 
instruments
 
(level
 
2)
Currency
 
forwards,
 
transaction
 
risk
34
-23
11
Interest
 
rate
 
swaps
-12
6
-6
Cross
 
currency
 
swaps
-12
-12
Total
-8
 
2019
MEUR
With
external
financial
institutions
With
 
Group
 
companies
Total
2019
Nominal
 
values
 
of
 
derivative
 
financial
 
instruments
 
Currency
 
forwards,
 
transaction
 
risk
2,358
2,448
4,806
Interest
 
rate
 
swaps
400
130
530
Cross
 
currency
 
swaps
246
246
Total
5,582
Fair
 
values
 
of
 
derivative
 
financial
 
instruments
 
(level
 
2)
Currency
 
forwards,
 
transaction
 
risk
11
11
Interest
 
rate
 
swaps
-7
2
-6
Cross
 
currency
 
swaps
-4
-4
Total
2
 
Foreign
 
currency
 
forward
 
contracts
 
are
 
against
 
transactional
 
risks
 
and
 
are
 
matched
 
against
 
the
 
hedged
cashflows.
 
Interest
 
rate
 
swaps
 
are
 
denominated
 
in
 
euros
 
and
 
the
 
average
 
interest
 
-bearing
 
period
 
for
 
external
contracts
 
is
 
59
 
(69)
 
months
 
and
 
125
 
(137)
 
months
 
for
 
intragroup
 
contracts.
 
The
 
average
 
maturity
 
for
 
cross
currency
 
swaps
 
is
 
30
 
(41)
 
months.
16.
 
FINANCIAL
 
RISKS
General
Wärtsilä
 
has
 
a
 
centralised
 
Group
 
Treasury
 
with
 
two
 
main
 
objectives:
 
1)
 
to
 
arrange
 
adequate
 
funding
 
for
 
the
Group’s
 
underlying
 
operations
 
on
 
competitive
 
terms
 
and
 
2)
 
to
 
identify
 
and
 
evaluate
 
the
 
financial
 
risks
 
within
 
the
Group
 
and
 
implement
 
the
 
hedges
 
for
 
the
 
Group
 
companies.
 
The
 
Group
 
Treasury
 
is
 
organisationally
 
within
 
the
Parent
 
Company.
 
The
 
details
 
about
 
the
 
management
 
of
 
the
 
Group's
 
financial
 
risks
 
are
 
in
 
Note
 
5.8.
 
of
 
the
 
Consolidated
 
Financial
statements.
 
As
 
the
 
Group's
 
liquidity
 
and
 
interest
 
rate
 
risks
 
are
 
managed
 
at
 
the
 
parent
 
company
 
level
 
the
 
group
reporting
 
applies
 
fully
 
to
 
the
 
Parent
 
Company.
 
Foreign
 
exchange
 
risk
Operative
 
foreign
 
currency
 
risks
 
are
 
followed
 
and
 
hedged
 
at
 
the
 
subsidiary
 
level.
 
The
 
Group
 
Treasury
 
acts
 
as
 
a
counterparty
 
to
 
these
 
hedges,
 
if
 
that
 
is
 
allowed
 
by
 
local
 
regulations.
 
To
 
enable
 
netting
 
of
 
intragroup
 
currency
flows
 
and
 
to
 
reduce
 
the
 
amount
 
of
 
external
 
transactions
 
the
 
Group
 
Treasury
 
is
 
allowed
 
to
 
have
 
minor
unhedged
 
exposures
 
in
 
different
 
currencies.
 
Any
 
gains/losses
 
from
 
the
 
Group
 
Treasury's
 
operations
 
are
booked
 
directly
 
into
 
the
 
financial
 
items
 
and
 
we
 
do
 
not
 
expect
 
any
 
material
 
foreign
 
exchange
 
gains/losses
 
from
the
 
Group
 
Treasury's
 
operations.
 
 
 
17.
 
COLLATERAL,
 
CONTINGENT
 
LIABILITIES
 
AND
 
OTHER
COMMITMENTS
MEUR
2020
2019
Guarantees
 
and
 
contingent
 
liabilities
On
 
behalf
 
of
 
Group
 
companies
2,889
2,773
Total
2,889
2,773
Future
 
nominal
 
lease
 
payments
Payable
 
within
 
one
 
year
4
4
Payable
 
after
 
one
 
year
26
29
Total
30
33
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
 
 
 
18.
 
RELATED
 
PARTY
 
LOANS
 
AND
 
OTHER
 
COMMITMENTS
There
 
are
 
no
 
loans
 
receivables
 
from
 
senior
 
management
 
and
 
the
 
members
 
of
 
the
 
Board
 
of
 
Directors.
 
No
pledges
 
or
 
other
 
commitments
 
were
 
given
 
on
 
behalf
 
of
 
senior
 
management
 
or
 
shareholders.
 
In
 
Note
 
7.2
 
in
Consolidated
 
Financial
 
Statements,
 
related
 
party
 
disclosures
 
are
 
specified.
 
Related
 
parties
 
comprise
 
the
 
Board
of
 
Directors,
 
the
 
President
 
and
 
CEO,
 
the
 
Board
 
of
 
Management
 
as
 
well
 
as
 
the
 
associated
 
companies
 
and
 
joint
ventures.
 
In
 
Notes
 
8
 
and
 
13
 
in
 
Parent
 
Company
 
financial
 
statement,
 
receivables
 
and
 
liabilities
 
from
 
Group
companies
 
are
 
specified.
 
19.
 
AUDITORS’
 
FEES
 
AND
 
SERVICES
The
 
following
 
fees
 
were
 
paid
 
to
 
auditors
 
and
 
accounting
 
firms
 
for
 
audits
 
and
 
other
 
services.
 
In
 
2020,
 
the
 
AGM
 
appointed
 
the
 
audit
 
firm
 
PricewaterhouseCoopers
 
Oy
 
as
 
Wärtsilä
 
Corporati
 
on's
 
auditor.
 
Auditors'
 
fees
 
TEUR
2020
2019
Audit
 
341
583
Tax
 
advisory
10
Other
 
services
14
111
Total
355
705
 
 
 
This
 
is
 
Wärtsilä
 
/
 
Sustainability
 
/
 
Governance
 
/
 
Financial
 
review
 
 
PROPOSAL
 
OF
 
THE
 
BOARD
 
The
 
parent
 
company’s
 
distributable
 
funds
 
total
 
EUR
 
974
 
,008,736.28,
 
which
 
includes
 
EUR
 
2
 
64,838,387.72
 
in
net
 
profit
 
for
 
the
 
year.
 
There
 
are
 
591,723,390
 
shares
 
with
 
dividend
 
rights.
 
The
 
Board
 
of
 
Directors
 
proposes
 
to
 
the
 
Annual
 
General
 
Meeting
 
that
 
the
 
company’s
 
distributable
 
earnings
 
be
disposed
 
of
 
in
 
the
 
following
 
way:
 
EUR
A
 
dividend
 
of
 
EUR
 
0.20
 
per
 
share
 
be
 
paid,
 
making
 
a
 
total
 
of
118
 
344
 
678.00
That
 
the
 
following
 
sum
 
be
 
retained
 
in
 
shareholders’
 
equity
855
 
664
 
058.28
Totalling
974
 
008
 
736.28
 
The
 
dividend
 
shall
 
be
 
paid
 
in
 
two
 
instalments.
 
The
 
first
 
instalment
 
of
 
EUR
 
0.10
 
per
 
share
 
shall
 
be
 
paid
 
to
 
the
shareholders
 
who
 
are
 
registered
 
in
 
the
 
list
 
of
 
shareholders
 
maintained
 
by
 
Euroclear
 
Finland
 
Ltd
 
on
 
the
 
dividend
record
 
date
 
of
 
8
 
March
 
2021.
 
The
 
payment
 
day
 
proposed
 
by
 
the
 
Board
 
for
 
this
 
instalment
 
is
 
15
 
March
 
2021.
 
The
 
second
 
instalment
 
of
 
EUR
 
0.10
 
per
 
share
 
shall
 
be
 
paid
 
in
 
September
 
2021.
 
The
 
second
 
instalment
 
of
 
the
dividend
 
shall
 
be
 
paid
 
to
 
shareholders
 
who
 
are
 
registered
 
in
 
the
 
list
 
of
 
shareholders
 
maintained
 
by
 
Euroclear
Finland
 
Ltd
 
on
 
the
 
dividend
 
record
 
day,
 
which,
 
together
 
with
 
the
 
payment
 
day,
 
shall
 
be
 
decided
 
by
 
the
 
Board
 
of
Directors
 
in
 
its
 
meeting
 
scheduled
 
for
 
9
 
September
 
2021.
 
The
 
dividend
 
record
 
day
 
for
 
the
 
second
 
instalment
 
as
per
 
the
 
curren
 
t
 
rules
 
of
 
the
 
Finnish
 
book
 
-entry
 
system
 
would
 
be
 
13
 
September
 
2021
 
and
 
the
 
dividend
 
payment
day
 
20
 
September
 
2021
 
No
 
significant
 
changes
 
have
 
taken
 
place
 
in
 
the
 
company’s
 
financial
 
position
 
since
 
the
 
end
 
of
 
the
 
financial
 
year.
The
 
company’s
 
liquidity
 
is
 
good
 
and
 
in
 
the
 
opinion
 
of
 
the
 
Board
 
of
 
Directors
 
the
 
proposed
 
dividend
 
will
 
not
 
put
the
 
company’s
 
solvency
 
at
 
risk.
 
 
 
Helsinki,
 
Finland,
 
27
 
January
 
2021
 
Tom
 
Johnstone
Markus
 
Rauramo
Maarit
 
Aarni
-
Sirviö
Karen
 
Bomba
Karin
 
Falk
Johan
 
Forssell
Risto
 
Murto
Mats
 
Rahmström
 
Jaakko
 
Eskola,
 
President
 
and
 
CEO
wartsila-2020-12-31p84i0
 
 
wartsila-2020-12-31p84i2 wartsila-2020-12-31p84i1
 
 
 
 
Auditor’s
 
Report
(Translation
 
of
 
the
Finnish
 
Original)
 
To
 
the
 
Annual
 
General
 
Meeting
 
of
 
Wärtsilä
 
Corporation
Report
 
on
 
the
 
Audit
 
of
 
the
 
Financial
 
S
 
tatements
 
Opinion
In
 
our
 
opinion
 
 
the
 
consolidated
 
financial
 
statements
 
give
 
a
 
true
 
and
 
fair
 
view
 
of
 
the
 
group’s
financial
 
position
 
and
 
financial
 
performance
 
and
 
cash
 
flows
 
in
 
accordance
 
with
International
 
Financial
 
Reporting
 
Standards
 
(IFRS)
 
as
 
adopted
 
by
 
the
 
EU
 
the
 
financial
 
statements
 
give
 
a
 
true
 
and
 
fair
 
view
 
of
 
the
 
parent
 
company’s
financial
 
performance
 
and
 
financial
 
position
 
in
 
accordance
 
with
 
the
 
laws
 
and
regulations
 
governing
 
the
 
preparation
 
of
 
the
 
financial
 
statements
 
in
 
Finland
and
 
comply
 
with
 
statutory
 
requirements.
Our
 
opinion
 
is
 
consistent
 
wit
 
h
 
the
 
additional
 
report
 
to
 
the
 
Audit
 
Committee.
What
 
we
 
have
 
audited
We
 
have
 
audited
 
the
 
financial
 
statements
 
of
 
Wärtsilä
 
Corporation
 
(business
identity
 
code
 
0128631-1)
 
for
 
the
 
year
 
ended
 
31
 
December
 
2020.
 
The
 
financial
statements
 
comprise:
 
the
 
consolidated
 
balance
 
sheet,
 
income
 
statement,
 
statement
 
of
 
comprehensive
income,
 
statement
 
of
 
changes
 
in
 
equity,
 
statement
 
of
 
cash
 
flows
 
and
 
notes,
including
 
a
 
summary
 
of
 
significant
 
accounting
 
policies
 
the
 
parent
 
company’s
 
balance
 
sheet,
 
income
 
statement,
 
statement
 
of
 
cash
 
flows
and
 
notes.
 
Basis
 
for
 
O
 
pinion
 
We
 
conducted
 
our
 
audit
 
in
 
accordance
 
with
 
good
 
auditing
 
practice
 
in
 
Finland.
 
Our
responsibilities
 
under
 
good
 
auditing
 
practice
 
are
 
further
 
described
 
in
 
the
 
Auditor’s
R
 
esponsibilities
 
for
 
the
 
Audit
 
of
 
the
 
Financial
 
Statements
 
section
 
of
 
our
 
report.
We
 
believe
 
that
 
the
 
audit
 
evidence
 
we
 
have
 
obtained
 
is
 
sufficient
 
and
 
appropriate
 
to
provide
 
a
 
basis
 
for
 
our
 
opinion.
 
Independence
We
 
are
 
independent
 
of
 
the
 
parent
 
company
 
and
 
of
 
the
 
group
 
companies
 
in
accordance
 
with
 
the
 
ethical
 
requirements
 
that
 
are
 
applicable
 
in
 
Finland
 
and
 
are
relevant
 
to
 
our
 
audit,
 
and
 
we
 
have
 
fulfilled
 
our
 
other
 
ethical
 
responsibilities
 
in
accordance
 
with
 
these
 
requirements.
To
 
the
 
best
 
of
 
our
 
knowledge
 
and
 
belief,
 
the
 
non-audit
 
services
 
that
 
we
 
have
provided
 
to
 
the
 
parent
 
company
 
and
 
to
 
the
 
group
 
companies
 
are
 
in
 
accordance
 
with
the
 
applicable
 
law
 
and
 
regulations
 
in
 
Finland
 
and
 
we
 
have
 
not
 
provided
 
non-audit
services
 
that
 
are
 
prohibited
 
under
 
Article
 
5(1)
 
of
 
Regulation
 
(EU)
 
No
 
537/2014.
 
The
non-audit
 
services
 
that
 
we
 
have
 
provided
 
are
 
disclosed
 
in
 
note
 
7.3
 
to
 
the
 
Financial
Statements.
wartsila-2020-12-31p84i0
 
 
 
 
 
 
 
 
 
 
wartsila-2020-12-31p85i1
 
 
 
 
 
Our
 
Audit
 
A
 
pproach
Overview
 
 
We
 
have
 
applied
 
an
 
overall
 
group
 
materiality
 
of
 
 
20
million.
 
The
 
group
 
audit
 
scope
 
included
 
Wärtsilä
 
Corporation
parent
 
company
 
and
 
all
 
significant
 
operating
companies,
 
as
 
well
 
as
 
a
 
large
 
number
 
of
 
smaller
companies,
 
covering
 
the
 
vast
 
majority
 
of
 
revenues,
assets
 
and
 
liabilities.
 
Revenue
 
recognition
 
of
 
long-term
 
contracts
 
Valuation
 
of
 
goodwill
 
Valuation
 
of
 
trade
 
receivables
 
As
 
part
 
of
 
designing
 
our
 
audit,
 
we
 
determined
 
materiality
 
and
 
assessed
 
the
 
risks
 
of
material
 
misstatement
 
in
 
the
 
financial
 
statements.
 
In
 
particular,
 
we
 
considered
where
 
management
 
made
 
subjective
 
judgements;
 
for
 
example,
 
in
 
respect
 
of
significant
 
accounting
 
estimates
 
that
 
involved
 
making
 
assumptions
 
and
considering
 
future
 
events
 
that
 
are
 
inherently
 
uncertain.
Materiality
The
 
scope
 
of
 
our
 
audit
 
was
 
influenced
 
by
 
our
 
application
 
of
 
materiality.
 
An
 
audit
 
is
designed
 
to
 
obtain
 
reasonable
 
assurance
 
whether
 
the
 
financial
 
statements
 
are
 
free
from
 
material
 
misstatement.
 
Misstatements
 
may
 
arise
 
due
 
to
 
fraud
 
or
 
error.
 
They
are
 
considered
 
material
 
if
 
individually
 
or
 
in
 
aggregate,
 
they
 
could
 
reasonably
 
be
expected
 
to
 
influence
 
the
 
economic
 
decisions
 
of
 
users
 
taken
 
on
 
the
 
basis
 
of
 
the
financial
 
statements.
Based
 
on
 
our
 
professional
 
judgement,
 
we
 
determined
 
certain
 
quantitative
thresholds
 
for
 
materiality,
 
including
 
the
 
overall
 
group
 
materiality
 
for
 
the
consolidated
 
financial
 
statements
 
as
 
set
 
out
 
in
 
the
 
table
 
below.
 
These,
 
together
 
with
qualitative
 
considerations,
 
helped
 
us
 
to
 
determine
 
the
 
scope
 
of
 
our
 
audit
 
and
 
the
nature,
 
timing
 
and
 
extent
 
of
 
our
 
audit
 
procedures
 
and
 
to
 
evaluate
 
the
 
effect
 
of
misstatements
 
on
 
the
 
financial
 
statements
 
as
 
a
 
whole.
 
Overall
 
group
 
materiality
 
2
 
0
 
million
 
(prior
 
year
 
 
24
 
million)
How
 
we
 
determined
 
it
5
 
%
 
of
 
profit
 
before
 
tax
 
(five-year
 
average)
Rationale
 
for
 
the
 
materiality
benchmark
 
applied
We
 
chose
 
profit
 
before
 
tax
 
as
 
the
 
benchmark
because,
 
in
 
our
 
view,
 
the
 
performance
 
of
 
the
Group
 
is
 
most
 
commonly
 
measured
 
by
 
using
this
 
criteria,
 
and
 
it
 
is
 
a
 
generally
 
accepted
benchmark.
 
We
 
chose
 
5
 
%
 
which
 
is
 
within
the
 
range
 
of
 
acceptable
 
quantitative
materiality
 
thresholds
 
in
 
auditing
 
standards.
How
 
we
 
tailored
 
our
 
group
 
audit
 
scope
The
 
group
 
audit
 
scope
 
was
 
tailored
 
to
 
take
 
into
 
account
 
the
 
structure
 
of
 
the
 
Group
and
 
the
 
size,
 
complexity
 
and
 
risk
 
of
 
individual
 
subsidiaries.
 
Using
 
this
 
criteria
 
we
selected
 
companies
 
and
 
accounts
 
into
 
our
 
audit
 
scope
 
and
 
at
 
the
 
same
 
time
 
ensured
that
 
we
 
get
 
sufficient
 
coverage
 
to
 
our
 
audit,
 
in
 
order
 
to
 
issue
 
an
 
audit
 
opinion
 
for
the
 
Group.
Key
 
Audit
 
Matters
 
Key
 
audit
 
matters
 
are
 
those
 
matters
 
that,
 
in
 
our
 
professional
 
judgment,
 
were
 
of
most
 
significance
 
in
 
our
 
audit
 
of
 
the
 
financial
 
statements
 
of
 
the
 
current
 
period.
These
 
matters
 
were
 
addressed
 
in
 
the
 
context
 
of
 
our
 
audit
 
of
 
the
 
financial
wartsila-2020-12-31p84i0
 
 
 
 
 
 
 
 
 
 
 
statements
 
as
 
a
 
whole,
 
and
 
in
 
forming
 
our
 
opinion
 
thereon,
 
and
 
we
 
do
 
not
 
provide
a
 
separate
 
opinion
 
on
 
these
 
matters.
As
 
in
 
all
 
of
 
our
 
audits,
 
we
 
also
 
addressed
 
the
 
risk
 
of
 
management
 
override
 
of
internal
 
controls,
 
including
 
among
 
other
 
matters
 
consideration
 
of
 
whether
 
there
was
 
evidence
 
of
 
bias
 
t
 
hat
 
represented
 
a
 
risk
 
of
 
material
 
misstatement
 
due
 
to
 
fraud.
Key
 
audit
 
matter
 
in
 
the
 
audit
 
of
the
 
group
 
How
 
our
 
audit
 
addressed
 
the
 
key
audit
 
matter
 
Revenue
 
recognition
 
of
 
long-term
contracts
Refer
 
to
 
the
 
consolidated
 
financial
statements
 
note
 
2.2
 
.
The
 
group
 
has
 
significant
 
revenue
from
 
construction
 
contracts
 
and
long-term
 
operating
 
and
maintenance
 
agreements.
 
These
long-term
 
contracts
 
are
 
often
complex
 
customised
 
solutions
 
and
meet
 
the
 
definition
 
for
 
revenue
recognition
 
over
 
time
 
in
 
accordance
with
 
IFRS
 
15.
Revenue
 
related
 
to
 
these
construction
 
contracts
 
and
 
long-
term
 
operating
 
and
 
maintenance
agreements
 
is
 
recognised
 
using
 
the
percentage
 
of
 
completion
 
method,
where
 
progress
 
is
 
determined
 
by
comparing
 
actual
 
costs
 
incurred
 
to
date,
 
with
 
the
 
total
 
estimated
 
costs
of
 
the
 
project.
 
Revenue
 
recognition
for
 
long-term
 
contracts
 
includes
 
Our
 
revenue
 
testing
 
included
 
both
 
testing
 
of
the
 
company’s
 
controls,
 
as
 
well
 
as
substantive
 
audit
 
procedures
 
targeted
 
at
selected
 
major
 
long-term
 
projects.
 
Our
substantive
 
testing
 
focused
 
on
 
estimates
applied
 
by
 
management
 
in
 
the
 
accounting.
 
Our
 
procedures
 
included,
 
among
 
others
things,
 
the
 
following:
-
 
Ensured
 
that
 
the
 
revenue
 
recognition
method
 
applied
 
was
 
appropriate
 
based
on
 
the
 
terms
 
of
 
the
 
arrangement;
-
 
Agreed
 
the
 
total
 
project
 
revenue
estimates
 
to
 
sales
 
agreements,
 
including
amendments
 
as
 
appropriate;
-
 
We
 
obtained
 
an
 
understanding
 
of
 
the
processes
 
and
 
tested
 
relevant
 
controls,
which
 
impact
 
the
 
revenue
 
recognition;
-
 
We
 
assessed
 
the
 
reliability
 
of
management’s
 
estimates
 
by
 
comparing
the
 
actual
 
results
 
of
 
delivered
 
projects
 
to
previous
 
estimates;
management
 
judgment
 
in
 
a
 
form
 
of
estimates,
 
which
 
are
 
subject
 
to
management
 
experience
 
and
expectations
 
of
 
future
 
events.
 
The
most
 
important
 
judgment
 
relates
 
to
the
 
estimated
 
total
 
costs
 
of
 
the
project.
Revenue
 
recognition
 
of
 
long-term
contracts
 
is
 
a
 
key
 
audit
 
matter
 
in
 
the
audit
 
due
 
to
 
the
 
high
 
level
 
of
management
 
judgement
 
involved
 
in
the
 
project
 
estimates.
 
-
 
We
 
challenged
 
the
 
management
estimates
 
and
 
assumptions
 
in
 
projects,
which
 
were
 
considered
 
to
 
include
specific
 
risk
 
factors;
 
and
-
 
Recalculated
 
the
 
revenue
 
based
 
on
 
the
stage
 
of
 
completion
 
of
 
the
 
projects.
Ensured
 
that
 
the
 
stage
 
of
 
completion
 
is
correct
 
by
 
comparing
 
actual
 
costs
 
per
the
 
company’s
 
accounting
 
records
 
to
 
the
estimated
 
total
 
costs
 
of
 
the
 
projects.
Valuation
 
of
 
goodwill
Refer
 
to
 
the
 
consolidated
 
financial
statements
 
note
 
3.1.
Goodwill
 
is
 
one
 
of
 
the
 
most
significant
 
balance
 
sheet
 
items
 
and
amounts
 
to
 
 
1
 
325
 
million.
 
The
determination
 
and
 
whether
 
an
impairment
 
charge
 
is
 
required
involves
 
significant
 
management
judgement,
 
including
 
identifying
 
on
which
 
cash
 
generating
 
unit
 
level
 
the
goodwill
 
is
 
tested
 
and
 
estimating
 
the
future
 
performance
 
of
 
the
 
business
and
 
the
 
discount
 
rate
 
applied
 
to
these
 
future
 
cash
 
flows.
 
Valuation
 
of
 
goodwill
 
is
 
a
 
key
 
audit
matter
 
in
 
the
 
audit
 
due
 
to
 
the
 
size
 
of
the
 
goodwill
 
balance
 
and
 
the
 
high
Our
 
audit
 
focused
 
on
 
assessing
 
the
reasonableness
 
of
 
the
 
determination
 
of
 
cash
generating
 
units,
 
which
 
forms
 
the
 
basis
 
for
the
 
goodwill
 
impairment
 
testing
 
and
assessing
 
the
 
appropriateness
 
of
management’s
 
judgments
 
and
 
estimates
used
 
in
 
the
 
goodwill
 
impairment
 
analysis.
Our
 
procedures
 
relating
 
to
 
the
 
impairment
analysis
 
included
 
the
 
following:
-
 
We
 
tested
 
the
 
methodology
 
applied
 
in
the
 
goodwill
 
impairment
 
analysis
 
as
compared
 
to
 
the
 
requirements
 
of
 
IAS
 
36,
Impairment
 
of
 
Assets;
-
 
We
 
evaluated
 
the
 
process
 
by
 
which
 
the
future
 
cash
 
flow
 
forecasts
 
were
 
drawn
up,
 
including
 
comparing
 
them
 
to
 
the
latest
 
Board
 
approved
 
targets
 
and
 
long
term
 
plans;
wartsila-2020-12-31p84i0
 
 
 
 
 
 
 
 
 
 
level
 
of
 
management
 
judgement
involved.
-
 
We
 
tested
 
the
 
key
 
underlying
assumptions
 
for
 
the
 
cash
 
flow
 
forecasts,
including
 
sales
 
and
 
profitability
forecasts,
 
discount
 
rate
 
used
 
and
 
the
implied
 
growth
 
rates
 
beyond
 
the
forecasted
 
period;
-
 
We
 
compared
 
the
 
current
 
year
 
actual
results
 
included
 
in
 
the
 
prior
 
year
impairment
 
model
 
to
 
consider
 
whether
forecasts
 
included
 
assumptions
 
that,
with
 
hindsight,
 
had
 
been
 
optimistic;
 
and
-
 
We
 
considered
 
whether
 
the
 
sensitivity
analysis
 
performed
 
by
 
the
 
management
around
 
key
 
assumptions
 
of
 
the
 
cash
 
flow
forecast
 
was
 
appropriate
 
by
 
considering
the
 
likelihood
 
of
 
the
 
movements
 
of
 
these
key
 
assumptions.
Valuation
 
of
 
trade
 
receivables
Refer
 
to
 
the
 
consolidated
 
financial
statements
 
note
 
4.2
 
.
Net
 
trade
 
receivables
 
amount
 
to
 
952
 
million,
 
including
 
an
impairment
 
provision
 
of
 
 
61
million.
 
The
 
trade
 
receivables
include
 
 
30
 
million
 
long-term
 
trade
receivables.
 
Trade
 
receivables
 
are
 
recognised
 
at
their
 
anticipated
 
realisable
 
value,
which
 
is
 
the
 
original
 
invoiced
For
 
trade
 
receivables
 
and
 
the
 
management’s
estimations
 
for
 
trade
 
receivables
impairment
 
provision,
 
our
 
key
 
audit
procedures
 
included
 
the
 
following:
 
-
 
We
 
obtained
 
trade
 
receivables
 
balance
confirmations;
-
 
We
 
analysed
 
the
 
aging
 
of
 
trade
receivables;
 
and
-
 
We
 
obtained
 
a
 
list
 
of
 
long
 
outstanding
receivables
 
and
 
assessed
 
the
recoverability
 
of
 
these
 
through
 
inquiry
with
 
management
 
and
 
by
 
obtaining
amount
 
less
 
an
 
estimated
 
valuation
allowance.
 
Valuation
 
of
 
trade
 
receivables
 
is
 
a
key
 
audit
 
matter
 
in
 
the
 
audit
 
due
 
to
the
 
size
 
of
 
the
 
trade
 
receivable
balance
 
and
 
the
 
high
 
level
 
of
management
 
judgement
 
used
 
in
determining
 
the
 
impairment
provision.
 
sufficient
 
corroborative
 
evidence
 
to
support
 
the
 
conclusions.
 
We
 
have
 
no
 
key
 
audit
 
matters
 
to
 
report
 
with
 
respect
 
to
 
our
 
audit
 
of
 
the
 
parent
company
 
financial
 
statements.
 
There
 
are
 
no
 
significant
 
risks
 
of
 
material
misstatement
 
referred
 
to
 
in
 
Article
 
10(2c)
 
of
 
Regulation
 
(EU)
 
No
 
537/2014
 
with
respect
 
to
 
the
 
consolidated
 
financial
 
statements
 
or
 
the
 
parent
 
company
 
financial
statements.
 
Responsibilities
 
of
 
the
 
Board
 
of
 
Directors
 
and
 
the
 
Managing
Director
 
for
 
the
 
Financial
 
Statements
The
 
Board
 
of
 
Directors
 
and
 
the
 
Managing
 
Director
 
are
 
responsible
 
for
 
the
preparation
 
of
 
consolidated
 
financial
 
statements
 
that
 
give
 
a
 
true
 
and
 
fair
 
view
 
in
accordance
 
with
 
International
 
Financial
 
Reporting
 
Standards
 
(IFRS)
 
as
 
adopted
 
by
the
 
EU,
 
and
 
of
 
financial
 
statements
 
that
 
give
 
a
 
true
 
and
 
fair
 
view
 
in
 
accordance
 
with
the
 
laws
 
and
 
regulations
 
governing
 
the
 
preparation
 
of
 
financial
 
statements
 
in
Finland
 
and
 
comply
 
with
 
statutory
 
requirements.
 
The
 
Board
 
of
 
Directors
 
and
 
the
Managing
 
Director
 
are
 
also
 
responsible
 
for
 
such
 
internal
 
control
 
as
 
they
 
determine
is
 
necessary
 
to
 
enable
 
the
 
preparation
 
of
 
financial
 
statements
 
that
 
are
 
free
 
from
material
 
misstatement,
 
whether
 
due
 
to
 
fraud
 
or
 
error.
 
In
 
preparing
 
the
 
financial
 
statements,
 
the
 
Board
 
of
 
Directors
 
and
 
the
 
Managing
Director
 
are
 
responsible
 
for
 
assessing
 
the
 
parent
 
company’s
 
and
 
the
 
group’s
 
ability
to
 
continue
 
as
 
a
 
going
 
concern,
 
disclosing,
 
as
 
applicable,
 
matters
 
relating
 
to
 
going
wartsila-2020-12-31p84i0
 
 
 
 
 
concern
 
and
 
using
 
the
 
going
 
concern
 
basis
 
of
 
accounting.
 
The
 
financial
 
statements
are
 
prepared
 
using
 
the
 
going
 
concern
 
basis
 
of
 
accounting
 
unless
 
there
 
is
 
an
intention
 
to
 
liquidate
 
the
 
parent
 
company
 
or
 
the
 
group
 
or
 
to
 
cease
 
operations,
 
or
there
 
is
 
no
 
realistic
 
alternative
 
but
 
to
 
do
 
so.
 
Auditor’s
 
Responsibilities
 
for
 
the
 
A
 
udit
 
of
 
the
 
Financial
 
Statements
Our
 
objectives
 
are
 
to
 
obtain
 
reasonable
 
assurance
 
about
 
whether
 
the
 
financial
statements
 
as
 
a
 
whole
 
are
 
free
 
from
 
material
 
misstatement,
 
whether
 
due
 
to
 
fraud
 
or
error,
 
and
 
to
 
issue
 
an
 
auditor’s
 
report
 
that
 
includes
 
our
 
opinion.
 
Reasonable
assurance
 
is
 
a
 
high
 
level
 
of
 
assurance,
 
but
 
is
 
not
 
a
 
guarantee
 
that
 
an
 
audit
conducted
 
in
 
accordance
 
with
 
good
 
auditing
 
practice
 
will
 
always
 
detect
 
a
 
material
misstatement
 
when
 
it
 
exists.
 
Misstatements
 
can
 
arise
 
from
 
fraud
 
or
 
error
 
and
 
are
considered
 
material
 
if,
 
individually
 
or
 
in
 
the
 
aggregate,
 
they
 
could
 
reasonably
 
be
expected
 
to
 
influence
 
the
 
economic
 
decisions
 
of
 
users
 
taken
 
on
 
the
 
basis
 
of
 
these
financial
 
statements.
As
 
part
 
of
 
an
 
audit
 
in
 
accordance
 
with
 
good
 
auditing
 
practice,
 
we
 
exercise
professional
 
judgment
 
and
 
maintain
 
professional
 
skepticism
 
throughout
 
the
 
audit.
We
 
also:
 
Identify
 
and
 
assess
 
the
 
risks
 
of
 
material
 
misstatement
 
of
 
the
 
financial
statements,
 
whether
 
due
 
to
 
fraud
 
or
 
error,
 
design
 
and
 
perform
 
audit
procedures
 
responsive
 
to
 
those
 
risks,
 
and
 
obtain
 
audit
 
evidence
 
that
 
is
sufficient
 
and
 
appropriate
 
to
 
provide
 
a
 
basis
 
for
 
our
 
opinion.
 
The
 
risk
 
of
 
not
detecting
 
a
 
material
 
misstatement
 
resulting
 
from
 
fraud
 
is
 
higher
 
than
 
for
 
one
resulting
 
from
 
error,
 
as
 
fraud
 
may
 
involve
 
collusion,
 
forgery,
 
intentional
omissions,
 
misrepresentations,
 
or
 
the
 
override
 
of
 
internal
 
control.
 
Obtain
 
an
 
understanding
 
of
 
internal
 
control
 
relevant
 
to
 
the
 
audit
 
in
 
order
 
to
design
 
audit
 
procedures
 
that
 
are
 
appropriate
 
in
 
the
 
circumstances,
 
but
 
not
 
for
the
 
purpose
 
of
 
expressing
 
an
 
opinion
 
on
 
the
 
effectiveness
 
of
 
the
 
parent
company’s
 
or
 
the
 
group’s
 
internal
 
control.
 
 
Evaluate
 
the
 
appropriateness
 
of
 
accounting
 
policies
 
used
 
and
 
the
reasonableness
 
of
 
accounting
 
estimates
 
and
 
related
 
disclosures
 
made
 
by
management.
 
Conclude
 
on
 
the
 
appropriateness
 
of
 
the
 
Board
 
of
 
Directors’
 
and
 
the
 
Managing
Director’s
 
use
 
of
 
the
 
going
 
concern
 
basis
 
of
 
accounting
 
and
 
based
 
on
 
the
 
audit
evidence
 
obtained,
 
whether
 
a
 
material
 
uncertainty
 
exists
 
related
 
to
 
events
 
or
conditions
 
that
 
may
 
cast
 
significant
 
doubt
 
on
 
the
 
parent
 
company’s
 
or
 
the
group’s
 
ability
 
to
 
continue
 
as
 
a
 
going
 
concern.
 
If
 
we
 
conclude
 
that
 
a
 
material
uncertainty
 
exists,
 
we
 
are
 
required
 
to
 
draw
 
attention
 
in
 
our
 
auditor’s
 
report
 
to
the
 
related
 
disclosures
 
in
 
the
 
financial
 
statements
 
or,
 
if
 
such
 
disclosures
 
are
inadequate,
 
to
 
modify
 
our
 
opinion.
 
Our
 
conclusions
 
are
 
based
 
on
 
the
 
audit
evidence
 
obtained
 
up
 
to
 
the
 
date
 
of
 
our
 
auditor’s
 
report.
 
However,
 
future
events
 
or
 
conditions
 
may
 
cause
 
the
 
parent
 
company
 
or
 
the
 
group
 
to
 
cease
 
to
continue
 
as
 
a
 
going
 
concern.
 
Evaluate
 
the
 
overall
 
presentation,
 
structure
 
and
 
content
 
of
 
the
 
financial
statements,
 
including
 
the
 
disclosures,
 
and
 
whether
 
the
 
financial
 
statements
represent
 
the
 
underlying
 
transactions
 
and
 
events
 
so
 
that
 
the
 
financial
statements
 
give
 
a
 
true
 
and
 
fair
 
view.
 
Obtain
 
sufficient
 
appropriate
 
audit
 
evidence
 
regarding
 
the
 
financial
information
 
of
 
the
 
entities
 
or
 
business
 
activities
 
within
 
the
 
group
 
to
 
express
 
an
opinion
 
on
 
the
 
consolidated
 
financial
 
statements.
 
We
 
are
 
responsible
 
for
 
the
direction,
 
supervision
 
and
 
performance
 
of
 
the
 
group
 
audit.
 
We
 
remain
 
solely
responsible
 
for
 
our
 
audit
 
opinion.
We
 
communicate
 
with
 
those
 
charged
 
with
 
governance
 
regarding,
 
among
 
other
matters,
 
the
 
planned
 
scope
 
and
 
timing
 
of
 
the
 
audit
 
and
 
significant
 
audit
 
findings,
including
 
any
 
significant
 
deficiencies
 
in
 
internal
 
control
 
that
 
we
 
identify
 
during
 
our
audit.
We
 
also
 
provide
 
those
 
charged
 
with
 
governance
 
with
 
a
 
statement
 
that
 
we
 
have
complied
 
with
 
relevant
 
ethical
 
requirements
 
regarding
 
independence,
 
and
 
to
wartsila-2020-12-31p84i0
 
 
 
 
 
 
 
communicate
 
with
 
them
 
all
 
relationships
 
and
 
other
 
matters
 
that
 
may
 
reasonably
 
be
thought
 
to
 
bear
 
on
 
our
 
independence,
 
and
 
where
 
applicable,
 
related
 
safeguards.
From
 
the
 
matters
 
communicated
 
with
 
those
 
charged
 
with
 
governance,
 
we
determine
 
those
 
matters
 
that
 
were
 
of
 
most
 
significance
 
in
 
the
 
audit
 
of
 
the
 
financial
statements
 
of
 
the
 
current
 
period
 
and
 
are
 
therefore
 
the
 
key
 
audit
 
matters.
 
We
describe
 
these
 
matters
 
in
 
our
 
auditor’s
 
report
 
unless
 
law
 
or
 
regulation
 
precludes
public
 
disclosure
 
about
 
the
 
matter
 
or
 
when,
 
in
 
extremely
 
rare
 
circumstances,
 
we
determine
 
that
 
a
 
matter
 
should
 
not
 
be
 
communicated
 
in
 
our
 
report
 
because
 
the
adverse
 
consequences
 
of
 
doing
 
so
 
would
 
reasonably
 
be
 
expected
 
to
 
outweigh
 
the
public
 
interest
 
benefits
 
of
 
such
 
communication.
Other
 
Reporting
 
R
 
equirements
 
Appointment
We
 
were
 
first
 
appointed
 
as
 
auditors
 
by
 
the
 
annual
 
general
 
meeting
 
on
 
2
 
March
2017
 
.
 
Our
 
appointment
 
represents
 
a
 
total
 
period
 
of
 
uninterrupted
 
engagement
 
of
four
 
years.
Other
 
I
 
nformation
 
The
 
Board
 
of
 
Directors
 
and
 
the
 
Managing
 
Director
 
are
 
responsible
 
for
 
the
 
other
information.
 
The
 
other
 
information
 
comprises
 
the
 
report
 
of
 
the
 
Board
 
of
 
Directors
and
 
the
 
information
 
included
 
in
 
the
 
Annual
 
Report,
 
but
 
does
 
not
 
include
 
the
financial
 
statements
 
and
 
our
 
auditor’s
 
report
 
thereon.
 
Our
 
opinion
 
on
 
the
 
financial
 
statements
 
does
 
not
 
cover
 
the
 
other
 
information.
In
 
connection
 
with
 
our
 
audit
 
of
 
the
 
financial
 
statements,
 
our
 
responsibility
 
is
 
to
read
 
the
 
other
 
information
 
and,
 
in
 
doing
 
so,
 
consider
 
whether
 
the
 
other
information
 
is
 
materially
 
inconsistent
 
with
 
the
 
financial
 
statements
 
or
 
our
knowledge
 
obtained
 
in
 
the
 
audit,
 
or
 
otherwise
 
appears
 
to
 
be
 
materially
 
misstated.
With
 
respect
 
to
 
the
 
report
 
of
 
the
 
Board
 
of
 
Directors,
 
our
 
responsibility
 
also
 
includes
considering
 
whether
 
the
 
report
 
of
 
the
 
Board
 
of
 
Directors
 
has
 
been
 
prepared
 
in
accordance
 
with
 
the
 
applicable
 
laws
 
and
 
regulations.
In
 
our
 
opinion
 
the
 
information
 
in
 
the
 
report
 
of
 
the
 
Board
 
of
 
Directors
 
is
 
consistent
 
with
 
the
information
 
in
 
the
 
financial
 
statements
 
the
 
report
 
of
 
the
 
Board
 
of
 
Directors
 
has
 
been
 
prepared
 
in
 
accordance
 
with
 
the
applicable
 
laws
 
and
 
regulations.
If,
 
based
 
on
 
the
 
work
 
we
 
have
 
performed,
 
we
 
conclude
 
that
 
there
 
is
 
a
 
material
misstatement
 
of
 
the
 
other
 
information,
 
we
 
are
 
required
 
to
 
report
 
that
 
fact.
 
We
 
have
nothing
 
to
 
report
 
in
 
this
 
regard.
Other
 
Statements
We
 
support
 
that
 
the
 
financial
 
statements
 
should
 
be
 
adopted.
 
The
 
proposal
 
by
 
the
Board
 
of
 
Directors
 
regarding
 
the
 
use
 
of
 
the
 
distributable
 
funds
 
is
 
in
 
compliance
with
 
the
 
Limited
 
Liability
 
Companies
 
Act.
 
We
 
support
 
that
 
the
 
Members
 
of
 
the
Board
 
of
 
Directors
 
and
 
the
 
President
 
and
 
CEO
 
should
 
be
 
discharged
 
from
 
liability
for
 
the
 
financial
 
period
 
audited
 
by
 
us.
 
Helsinki
 
5
 
February
 
202
 
1
PricewaterhouseCoopers
 
Oy
 
Authorised
 
Public
 
Accountants
 
Merja
 
Lindh
Authorised
 
Public
 
Accountant
 
(KHT)