IAS 10 paras 21, 22(e), restructuring announced post year end

Wärtsilä Corporation – Annual report – 31 December 2018

Industry: manufacturing

35. Events after the balance sheet date
On 30 January 2019, Wärtsilä announced plans to realign its operations and resources to secure future profitability and competitiveness. The Group-wide programme emphasises sustainable savings and actions that increase customer value. The planned actions include an increased focus on targeted sales activities, developing the agreements-based and “as-a-service” business, reviewing the cost structure, as well as optimising the business portfolio and organisation. The programme is expected to lead to a reduction of approximately 1,200 employees globally. The reductions will impact all businesses and support functions. With these actions Wärtsilä seeks annual savings of EUR 100 million. Savings are expected to materialise gradually during the second half of 2019, with full effect by the end of 2020. The costs related to the restructuring measures are expected to be EUR 75 million.