1) About Wärtsilä
2) Wärtsilä shares
3) Financial information
4) Corporate Governance
1 About Wärtsilä
1.1 What is Wärtsilä’s vision and mission?
Mission
We provide lifecycle power solutions to enhance the business of our customers, whilst creating better technologies that benefit both the customer and the environment.
Vision
We will be the most valued business partner of all our customers.
1.2 What is Wärtsilä’s strategy?
Our course is profitable growth
We enhance the business of our customers by providing them with complete lifecycle power solutions. When creating better and environmentally compatible technologies, we focus on the marine and energy markets. We provide ship power solutions and flexible power plants with related services to our customers. Through innovative products and services, we set out to be the most valued business partner of all our customers. Our strategic aim is to strengthen our leading position in our markets and to ensure continued growth by offering our customers best lifecycle efficiency and reliability available. This is made possible by an integrated equipment and service portfolio that matches customers’ needs globally. Read more about Wärtsilä’s strategy.
1.3 What are Wärtsilä’s financial goals?
Wärtsilä’s target is to improve its financial performance and create added value for its stakeholders and society. Wärtsilä’s financial goal is to offer investors a competitive return on their investment through profitable growth.
The average growth target for corporate annual sales is 6–7%. The growth target of the Ship Power and Power Plants businesses is 4%, and for the Services business 10–15%. Wärtsilä’s operating profit target (EBIT) is 8-10% of net sales over the cycle, with a range of +/- 2%. Wärtsilä’s solvency ratio target is 35–40%.
1.4 What are Wärtsilä’s main geographical markets?
Wärtsilä’s customers are evenly spread around the world. For more information on Wärtsilä’s local presence please visit our local sites.
1.5 What are Wärtsilä’s main customer segments?
Wärtilä’s main customer segments in the Ship Power business are ship builders, ship owners and ship operators. In the Power Plants business the customer groups can be divided into: industries, utilities and independent power producers. In the Services-business the segment consists mainly of Wärtsilä’s installed engine base.
1.6 When was Wärtsilä founded?
Wärtsilä was founded in 1834. For more information on Wärtsilä’s history, please visit our About us-section.
1.7 How many people does Wärtsilä employ?
Wärtsilä currently employs over 17.000 people on over 70 countries around the world. Find out more about working at Wärtsilä on our Careers-section.
1.8 Where are Wärtsilä’s biggest production facilities?
Wärtsiläs biggest production facilities are situated in Vaasa, Finland and in Trieste, Italy. Both centres are designed to produce several engine types.
1.9 How much of Wärtsilä’s net sales are allocated to R&D?
In 2007 Research and Development in the Power Businesses totalled EUR 122 million or 3.2% of net sales.
1.10 What does Wärtsilä’s after market operations include?
Wärtsilä divides its services into seven categories: engine services, automation services, reconditioning services, propulsion services, training services, ship services and operation and management services. Wärtsilä is the only service provider able to offer such a large range of services to its industry. Read more about Wärtsiläs Services-solutions.
1.11 What are Wärtsilä’s most important raw materials?
Wärtsiläs most important raw materials are iron, steel, aluminium, metals, bronze, concrete, water and different oils.
1.12 How is Wärtsilä affected by changes in raw material prices?
The direct effect of oil price changes on production in Wärtsilä is quite limited. The indirect effects of oil price volatility on customers are outweighed in importance by the long economic life of the investments and the availability of alternative fuels.
The Propulsion Business hedges its exposures to different metal prices. These risks are small from the group’s perspective. Metal prices have an indirect effect on engine component costs. This exposure is not hedged but annual agreements are in place to balance the short-term fluctuations.
1.13 How do changes in currency exchange rates impact Wärtsilä?
Most of Wärtsilä’s business is conducted in euros, and the impact of changes in exchange rates is therefore limited. Foreign exchange exposures are monitored at the Business level and netted and hedged at Group level. The hedges cover such time periods that both the prices and costs can be adjusted to new exchange rates. The Group’s profits and competitiveness are indirectly affected by home currencies of its main competitors: USD, GDP, JPY and KRW. Since Wärtsilä has subsidiaries outside the euro zone, the Group’s shareholder’s equity is also sensitive to exchange rate fluctuations.
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Currency distribution 2007
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Net sales
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Operating cost
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Euro zone
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69%
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65%
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USD
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13%
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8%
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NOK
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3%
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6%
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CHF
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2%
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4%
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Other EU
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3%
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4%
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SGD
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2%
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2%
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Other
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9%
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10%
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100%
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100%
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2 Wärtsilä shares
2.1 Where are the Wärtsilä shares listed?
Wärtsilä’s shares are listed on the Helsinki Exchanges, which is part of the OMX Group.
2.2 How many share series does Wärtsilä have?
Wärtsilä has one share series. The series A and B were combined and tradig started on the 27th of March 2008.
2.3 How many outstanding shares does Wärtsilä have?
Information about the development of Wärtsilä’s share capital.
2.4 Who are Wärtsilä’s largest shareholders?
At the end of 2007 Wärtsilä’s biggest shareholders were Avlis AB, Varma Mutual Pension Insurance Company, Svenska Litteratursällskapet i Finland r.f. and Fiskars Corporation. Updated list of Wärtsilä’s biggest shareholders.
2.5 What is the current share price?
Please go to our Sharemonitor to find the most current share price (15 minutes delay), and to follow the development of the share.
2.6 Does Wärtsilä’s management hold any Wärtsilä shares?
Information on management holdings.
2.7 What is Wärtsilä’s dividend policy?
Wärtsilä's target is to pay a dividend equivalent to 50% of operational earnings per share. Information on historical dividends.
2.8 When is the dividend paid out?
The payout date varies from year to year. The dividend for 2007 was paid on 2 April 2008. Information on historical dividends.
Practical questions related to the combining of the share series and free share issue
2.9 I hold Wärtsilä’s A shares – what actions are required from me?
No action is required from the shareholders in relation to the combination of the share series and/or the directed free share issue.
2.10 I own A-shares but the amount can’t be divided with 9 – will I loose all my shares?
In combining the Company’s share series each Series A-share will be converted 1:1 into a share corresponding to the current Series B-share. For your 9 current A-shares (WRTAV) you would get 9 WRT1V shares. In addition holders of Series A-shares would receive one share free of charge for each nine Series A-shares. To the extent the number of Series A-shares held by the holder of Series A-shares is not divisible by nine (9), the shareholder is entitled to the monetary value of the fraction divisible by nine.
2.11 If I hold 15 A shares will the shares exceeding 9 be sold and I will not get any new shares for those?
No they will not be sold. Each Series A-share will be converted 1:1 into WRT1V-shares. In addition, these same 15 Series A-shares entitle the shareholder to additional shares so that 9 of these shares directly entitle the shareholder to one additional share. However, out of the original 15 Series A-shares, 6 shares are “left over” because they are not divisible by 9 and thus, 6/9 is the fraction of an additional share that will be sold on behalf of the shareholder and of which the shareholder receives monetary compensation. All in all, a shareholder of 15 Series A-shares receives 16 shares (15+1) and 6/9 of the value of one additional share in cash.
2.12 If I hold 8 A-shares – will they all be sold and I will not get any new shares?
No they will not be sold. You will receive 8 WRT1V- shares and 8/9 of the value of one additional share in cash.
2.13 When will I get the new shares?
The converted shares and the new shares issued in the directed share issue are on the shareholders’ book-entry accounts and tradable on the Helsinki Stock Exchange on the 27 of March 2008.
2.14 How much money will I get from the fraction of one A-share?
The fraction shares are sold in public trading on the Helsinki Stock Exchange the price of them being the prevailing trading price. The value of one fraction is defined by the total value of the trade, divided by the amount of fractions.
2.15 When will I receive the money from the sales of the fraction shares?
The amounts payable will be remitted to each shareholder approximately on 2 April 2008 in which case the money will arrive to the shareholder’s bank account attached to their book-entry accounts approximately on 7 April, 2008, at the latest.
2.16 How will the fraction shares be treated in taxation?
Taxation of the transfer of shares may vary according to the shareholder. However, as a rule, the capital gain resulting from the sale of the Fraction Shares is taxable income. Shareholders are advised to consult their tax advisor regarding their taxation in this respect.
2.17 Am I entitled to the extra shares if I buy A-shares after the AGM on 19 March 2008?
Any new Series A-shares acquired after 19 March 2008 will not entitle to new shares issued in the directed free share issue.
2.18 What does record date mean?
New shares are issued to the holders of Series A-shares in proportion to their ownership on the Record Date 26 March 2008.
2.19 What happens if I have A-shares in several different book-entry accounts?
Whether the number of the shareholder’s Series A-shares is divisible by nine is checked and taken into account only per each separate book-entry account. In other words, shareholdings divided into several separate book-entry accounts can’t be technically combined in connection with the directed free share issue. Please see below also.
2.20 What should I do so that my A-share holdings in different book-entry accounts would be treated as one holding?
In order to treat A-share holdings in different book-entry accounts as one holding the holder should himself see to it that all A-shares are registered in the same book-entry account at the record date 26 march 2008. In order to ensure this the shareholder should immediately contact his bank.
2.21 When can I trade with Wärtsilä’s new WRT1V-share?
The trading starts on the 27 March 2008. Until 26 March 2008 all “old” shares are tradable with old trading codes.
2.22 What is the share’s trading code?
The trading code for Wärtsilä’s shares will be WRT1V.
2.23 Which rights do the new shares carry?
From 26 March 2008 each share has one vote and equal rights to dividend. All shares carry equal rights.
3 Financial information
3.1 What is Wärtsilä’s financial year?
Wärtsilä’s financial year is the calendar year; 1.1-31.12.
3.2 When does Wärtsilä publish its financial results?
The publication date varies from year to year. Please refer to our IR calendar to find the exact date.
3.3 Where can I find additional financial information on Wärtsilä?
The financials section of our website is a good source of information as well as our annual report.
3.4 Where can I order Wärtsilä’s annual report?
You can order material here.
4 Corporate Governance
4.1 Who are the members of the Board of Directors?
In 2008 Wärtsilä has 6 members of the Board of Directors; Antti Lagerroos, Matti Vuoria, Maarit Aarni-Sirviö, Kaj-Gustaf Bergh, Kari Kauniskangas and Bertel Langenskiöld. Read more about the members.
4.2 What are Wärtsilä’s corporate governance principles?
Please read about our corporate governance.
4.3 Does Wärtsilä have any incentive schemes for management?
Find out more about management incentive schemes.
4.4 Who are Wärtsilä’s auditors?
In 2007 the Annual General Meeting appointed the firm of public accountants KPMG Oy Ab as Wärtsilä Corporation’s auditors.
4.5 Where can I find Wärtsilä’s Articles of Association?
Wärtsiläs articles of association can be found in the Governance-section.
Additional questions? Please contact us at investor.relations@wartsila.com.
