Wartsila
Introduction
Wartsila is listed on the NASDAQ OMX in Helsinki, Finland. The company has operations in nearly 170 locations in 70 countries around the world. In 2011, Wartsila’s net sales totaled EUR 4.2 billion with approximately 18,000 employees.
Business Portfolio
Marine Market o Operates in merchant, offshore, cruise & ferry, naval, and special vessel markets globally o Activities include
 Ship design
 Main and auxiliary engines
 Aauxiliary power systems and Electrical and automation packages
 Propulsors (such as water jets, thrusters, propellers and nozzles)
 Seals, bearings, gears, rudders, scrubbers, boilers and all related services, such as repair, configuration, upgrading, training, maintenance and environmental services o Customers comprise of both shipyards, and ship owners o Environmental services range from reduction of air emissions, such as NOx, SOx, CO and VOC's, to oily waste water treatment and other water solutions
Energy Market o Product portfolio consists of installations up to 500 MW, running on most fossil fuels, such as natural gas and LNG, fuel-oils, and renewable fuels like biogas and biofuel o Provides products and services for:
 grid stability management
 utilization of gas flares
 pumping applications (such as pump and compression drives),
 financial services
 project management services for projects concerning power generation
Services Market o Provides services, spare parts, maintenance, upgrades and fuel conversions solutions for:
 medium and low speed gas and diesel engines
 propulsion systems
 electrical & automation systems boilers
 selective catalytic reduction and oxidation catalysts
 ballast water treatment systems and oily-water systems

Engines o Wartsila engines are mainly used for marine propulsion and for electricity generation o Range from the 4L20, a four-stroke, medium-speed engine producing 720 kW (970 hp), to the Wartsila-Sulzer RT-flex96-C two-stroke diesel engine series o Produces a full line of four-stroke medium-speed engines which are
 multi-fuel
 ranging up to the 20V46F o Offers a full line of two-stroke, low-speed engines, ranging from approximately 3860 kW (5,180 hp) up to 130,520 kW (175,030 hp)
Current Market Position

Ship Power o Market Share(2011)
 medium-speed main engine market share was 46%
 low-speed engines market share was 22%
 auxiliary engine market share was 4% o Wartsila Ship Power’s order intake for January-December 2011 was EUR 1,000 million, a significant increase of 52% over 2010
Other
o During the period July 2010 - June 2011, the overall market for gas and liquid fuel based power plants grew to approximately 70.1 GW

Financial Position o Wartsila’s net sales for the fourth quarter decreased by 15% to EUR 1,238 million o Net sales for Ship Power totaled EUR 309 million (371), a decrease of 17% o Profit of €283 million in 2011

Quality Highlights (compiled from Internal Newsletters) o Inspection and maintenance of boilers is still an important element of marine services
 In most standard maintenance programmes developed for ships, boilers will be inspected by the crew when shut down for cleaning, or at least prior to a class inspection
 Wartsila Boiler service includes scheduled inspections, performance testing, and pre-docking inspections – as well as any repairs found necessary and recommendable
 New 0.1% sulphur limit: The MARPOL Annex VI relating to the use of low sulphur fuels in the SECA area, has been further strengthened, and only fuels with a sulphur level of 0.1% or lower will be permitted as from January 2010. o Tugging : The W TUG project is a Wartsila initiative aimed at developing a new concept for tugs.
 It brings together the company’s Ship Design and Ship Power expertise
 Several types of CFD (computational fluid dynamics) are used in parallel during the design process

o It follows
 Ambient Air Quality (AAQ) standards
 compliance with the IFC (International Finance Corporation) and World Bank EHS (Environmental, Health and Safety)
 IFC EHS Guidelines IPPC (Integrated Pollution Prevention and Control)
 Ground Level Concentration (GLC) Calculations
Major News Highlights – Marine Market
Expansion in Boiler Services and Maintenance offering in SouthEast Asia and the Pacific Region
March 5, 2012 – Wartsila has signed a contract to acquire the assets and business of MMI Boiler Management Pte Ltd., the Singapore-based company specializing in the service and maintenance of boilers for marine and industrial applications. MMI Boiler Management has its main operations in Singapore and coverage throughout Southeast Asia and the Pacific region.
The acquisition further strengthens Wartsila’s boiler services offering and enhances its leading position in the global marine services market. Furthermore, it supports Wartsila Services’ strategy of constantly developing the offering with value-enhancing services within existing customer segments.
Development of a new SCR system in conjunction with ABB and HUG for more Operational Flexibility
June 15, 2010 – In an extension of their existing cooperation in the development of 2-stage turbocharged medium speed diesel engines, Finnish power solutions provider Wartsila and Swiss turbocharging specialist ABB Turbo Systems intend to cooperate with a third partner, after-treatment specialist Hug Engineering, based in Elsau, Switzerland. The object of the new joint project is to develop an innovative compact selective catalytic reduction (SCR) system especially tailored to operation with two-stage turbocharging.
In this programme, Wartsila is focusing on developing advanced engine technology, which with the turbocharger, is able to reach the highest possible performance and become a cost-effective commercial solution for its customers.
Addition of water-lubricated bearings to Wartsila’s portfolio
May 18, 2007 – Wartsila signed an agreement to acquire the marine business of Railko Ltd. in the UK, a company specializing in synthetic stern tube bearing technology. By acquiring the marine business of Railko, Wartsila will improve its competitive position in oil-lubricated bearing systems. In addition, by adding water-lubricated bearings to its portfolio Wartsila obtains a unique position as the only global total solution provider in water-lubricated stern tube systems
Expansion in Environmental Solutions in Waste Management in Marine Sector
February 2, 2007 – Wartsila signed an agreement to acquire the Swedish company Senitec AB in Varberg. The company specializes in environmental technology products for separating waste such as oily water and sludge in power plants, harbours and ships.
This new business gives Wartsila the possibility to expand its offering of environmental solutions in waste management

Hercules-β, Cooperative Research Project between Wartsila and MAN Diesel
October 5, 2006 – The two world leading European marine engine manufacturer companies, MAN Diesel and Wartsila Corporation agreed to propose a large scale Cooperative Research Project – HERCULES-β.
The HERCULES-β is a large innovative research and development project aiming for technological breakthrough in the reduction of fuel consumption and emissions for the next generation marine diesel engines onboard ships, reaching beyond today’s limits set by the IMO and radically improving the environmental effect of Waterborne Transport.