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 tough market conditions, Wärtsilä has performed well. Profitability remained resilient and totalled EUR 469 million, 11.1% of net sales. Wärtsilä’s net sales totalled EUR 4,209 million, decreasing by 7.6% compared to the previous year. Europe’s share of net sales was 30%, Asia’s 38%, the Americas’ 20% and others’ 12%. Our long-term target is to grow faster than global GDP, and 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
             
MEUR   2011 2010 2009 2008 2007
Customers Net sales 4 209 4 553 5 260 4 612 3 763
Suppliers Cost of goods, materials and services purchased -2 694 -2 927 -3 593 -3 134 -2 576
  Value added 1 514 1 626 1 667 1 479 1 187
Distribution of value added Distributed to stakeholders          
Employees Wages and salaries 770 773 735 693 592
Public sector Taxes and social dues 322 326 337 288 242
Creditors Net financial items 16 13 34 9 8
Shareholder Dividends 178 271 173 148 408
Communities Donations given 1 1 1 1 1
For business development   228 242 388 340 -64
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