Wärtsilä

Shaping the decarbonisation of Marine and Energy

Roadshow presentation

November 2022

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MARKET FUNDAMENTALS

MARINE will move with unprecedented speed towards decarbonisation

Policies & regulations

  • IMO target
  • Access to capital
  • Cost of carbon
  • Demand for green sea transport

Technology

  • Carbon neutral and zero carbon fuels
  • Carbon fuels for many years, still
  • Abatement technologies
  • Battery systems, hybrids & energy saving devices
  • Fuel efficiency & flexibility

Connectivity & data

  • Vessels as data pools
  • Optimisation solutions
  • Performance-basedagreements
  • Cyber security
  • Autonomous operations

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ENERGY is moving towards a 100% renewables future

Policies & regulations

EU: Carbon neutral by 2050

USA: carbon free electricity production by 2035, net zero emissions by 2050

China: Carbon neutral by 2060

Technology

Wind and solar growing rapidly Intermittent sources requiring

balancing power

Sustainable fuels for thermal balancing

Digitalisation Cyber security

Growing ENERGY demand

By 2050, electricity generation expected to grow by 3X, renewables by 8X 1)

By 2030, balancing power market to grow by 10X 2)

Gradual replacement of coal

Power systems increasingly complex

1) IEA World Energy Outlook 2021 (Net Zero Emissions Scenario)

2) Bloomberg New Energy Outlook 2020, Wärtsilä estimates

OUR VALUE CREATION POTENTIAL IS BASED ON TWO STRATEGIC THEMES

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TRANSFORM

Decarbonisation creates new business opportunities

PERFORM

Leverage market recovery and growth

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TRANSFORM

Decarbonisation creates new business opportunities

  • Maritime is going through an unprecedented rate of change, which is accelerated by regulations and the demand for green transport.
  • Also, the energy sector is undergoing a massive transformation as decarbonisation and renewables are fundamentally going to change the way energy is generated.
  • We are set for performance and have significant value creation potential to drive this transformation as a technology leader.

1 Major test programme launched, 100% ammonia concept in 2023, 100% hydrogen in 2025

2 Extensive service network, positioned for growth both in transactional services and performance-based agreements

3 First Wärtsilä GridSolv Quantum

delivered in the USA

4 First real-life digital port call with Wärtsilä Navi-Port

5 Wärtsilä selected to supply world's largest bioLNG production plant

6 Hitting methanol milestone with first newbuild engine order

7 Ensuring optimal performance and minimal carbon footprint for world's most environmentally friendly ferry

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PERFORM

We are ready to leverage market recovery and growth

#1-3 in global markets

"SET FOR 30"

DECARBONISATION TARGETS:

FINANCIAL TARGETS:

carbon neutral in our own

5% annual organic growth

operations by 2030

12% operating margin

a product portfolio ready for

zero carbon fuels by 2030

Clear financial targets and strong commitment to realise them

Extensive service network, positioned for growth both in transactional services and performance-based agreements

Robust capital allocation

Notable opportunity

principles and active

in retrofits and

portfolio management

conversions

Focus on:

  • High performing teams
  • Performance excellence and robust execution
  • Continuous improvement
  • Cost structure - actions taken whenever and wherever necessary

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Wärtsilä Oyj published this content on 28 October 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 October 2022 07:52:05 UTC.