Wärtsilä aims to meet shareholder expectations and contribute towards the well-being of society. This requires efficient, profitable and competitive company operations. Good economic performance establishes a platform for the other aspects of sustainability - environmental and social responsibility.
Creating economic added value
Wärtsilä's purpose is to create value for its various stakeholders. The focus is on profitability and raising shareholder value. Achieving this depends on our ability to satisfy the expectations of our other stakeholders as well. These include providing customers with high-quality and environmentally sound products, solutions and services, building long-term partnerships with suppliers, offering employees competitive compensation and working conditions, and contributing to the well-being of the local communities in which we operate. Despite the uncertain market conditions, our success supported our strategy of profitable growth. Our target has been to grow 6-7% over the cycle and our profitability target (EBIT%) has been 8-10% of net sales over the cycle with a range of +/- 2%. In 2010, Wärtsilä's net sales fell 13% and totalled EUR 4,553 million. Europe's share of net sales was 28%, Asia's 39%, Americas' 23% and others' 11%. Profitability remained at a good level and totalled EUR 487 million (10.7%). After the review period Wärtsilä redefined its financial targets. Our target is to grow faster than global GDP. Our operating profit margin (EBIT%) target is 14% at the peak of the cycle. Even at the trough of the cycle, our target is to keep the operating profit margin above 10%.
|Added value to Wärtsilä's stakeholders|
|Customers||Net sales||4 553||5 260||4 612||3 763||3 190|
|Suppliers||Cost of goods, materials and services purchased||-2 927||-3 593||-3 134||-2 576||-2 034|
|Value added||1 626||1 667||1 479||1 187||1 156|
|Distribution of value added||Distributed to stakeholders|
|Employees||Wages and salaries||773||735||693||592||511|
|Public sector||Taxes and social dues||326||337||288||242||213|
|Creditors||Net financial items||13||34||9||8||7|
|For business development||242||388||340||-64||257|