Result presentation Q3 2014

1. WÄRTSILÄ CORPORATION
INTERIM REPORT JANUARY-SEPTEMBER 2014
23 OCTOBER 2014
Björn Rosengren,
President & CEO
© Wärtsilä

2. • Order intake EUR 1,309 million, +21%
• Net sales EUR 1,117 million, -7%
• Book-to-bill 1.17
• EBIT EUR 142 million, 12.7% of net sales
(EUR 148 million or 12.3%)
• EPS EUR 0.43 (0.48)
• Efficiency programme proceeding according to
plan, EUR 10 million savings achieved in Q3
• Guidance for EBIT% before non-recurring items
revised to 11.5-12.0% (previously around 11.5%)
EBIT is shown excluding non-recurring items.
As of the third quarter of 2014, the two-stroke business is reported as discontinued
operations. Income statement related comparison figures for 2013 have been restated.
Highlights Q3/2014
2 © Wärtsilä

3. 5500
5000
4500
4000
3500
3000
2500
2000
1500
1000
500
© Wärtsilä
1400
1200
1000
800
600
400
200
0
21%
2%
24%
47%
1,086
Q3/2013 Q3/2014
MEUR
Third quarter development
MEUR
3
Strong development in third quarter order intake
0
2010 2011 2012 2013 1-9/2014
1,309
Q1-Q3 Q4
Services
Ship Power
Power Plants

4. 5000
4500
4000
3500
3000
2500
2000
1500
1000
500
© Wärtsilä
Net sales in line with our expectations
1400
1200
1000
800
600
400
200
0
Q3/2013 Q3/2014
0
2010 2011 2012 2013 1-9/2014
-7%
9%
6%
-33%
1,199
MEUR
Third quarter development
MEUR
1,117
4
Net sales developed according to expectations
Services
Ship Power
Power Plants
Q1-Q3 Q4

5. © Wärtsilä
Net sales by business 1-3/2012
Ship Power
36% (28)
Power Plants
22% (31)
Services
43% (42)
5
Net sales by business 1-9/2014

6. 5500
5000
4500
4000
3500
3000
2500
2000
1500
1000
500
© Wärtsilä
0.88
1.07 1.05 1.05
1.10
1,2
1,0
0,8
0,6
0,4
0,2
0,0
0
2010 2011 2012 2013 1-9/2014
Order intake Net sales Book-to-bill
MEUR
6
Book-to-bill ratio remains above one

7. 3500
3000
2500
2000
1500
1000
500
© Wärtsilä
Order book distribution
MEUR
7
Order book distribution
Delivery current year Delivery next year or later
0
30.9.2013 30.9.2014

8. 600
500
400
300
200
100
EBIT before non-recurring items
© Wärtsilä
12.3% 12.7%
14%
12%
10%
8%
6%
4%
2%
0%
160
140
120
100
80
60
40
20
0
Q3/2013 Q3/2014
10.7%
11.1% 10.9%
12.1%
14%
12%
10%
8%
6%
4%
2%
0%
0
2010 2011 2012 2013
MEUR
Third quarter development
MEUR
8
Profitability developed well
EBIT% before non-recurring items

9. 9 © Wärtsilä
Improved activity in
smaller power plant
orders

10. Power plant quotation activity on a high level
10 © Wärtsilä
Quotations remain focused on gas
18000
16000
14000
12000
10000
8000
6000
4000
2000
0
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
MW
Quoted MW per Fuel Type
Others
Natural gas
Heavy fuel oil

11. MEUR Review period development
2000
1800
1600
1400
1200
1000
800
600
400
200
0
© Wärtsilä
2010 2011 2012 2013 1-9/2014
Total EUR 792 million (884)
Utilities
Industrials
IPP’s*
Review period order intake by fuel in MW
Oil
46%
Gas
54%
x%
11
Power Plants order intake picked up in the third quarter
28%
21%
51%
Q1-Q3 Q4
*IPP = Independent Power Producer

12. © Wärtsilä
308
99
56
217
130 171
Americas 539 (324)
Order intake 1-9/2014: 1,716 MW (1,786)
Asia 326 (738)
Africa and Middle East 440 (424)
Utilities
IPP’s
Industrials
12
Power Plants’ order intake evenly spread globally
3
140
53
Europe 410 (300)
290
65
185

13. © Wärtsilä
• Wärtsilä to supply a 139 MW flexicycle power
plant for Energia del Caribe in Mexico
• Scope of supply: EPC contract based on seven
50SG gas engines and a combined cycle
• The capability to produce efficient, flexible and
reliable energy, and ensure firm capacity
without interruptions were key reasons for
being awarded the contract
• The project doubles Wärtsilä’s installed
generating capacity in Mexico to 280 MW
13
Significant power plant order from Mexico

14. Market for gas and liquid based power plants
4.2%
14
© Wärtsilä
Market <500MW
10.6 GW (12.7)
2.8%
9.4%
10.4%
62.3%
10.4%
2.8%
1-6/2014
0.9%
Total market
23.4 GW (18.8)
1.3% 0.4%
15.9%
9.0% 44.0%
24.8%
GE Siemens MHI Wärtsilä Alstom Ansaldo Other GTs
Includes all Wärtsilä power plants and other manufacturers’ gas and liquid fuelled turbine based power plants
with prime movers above 5 MW, as well as estimated output of steam turbines for combined cycles.
The data is gathered from the McCoy Power Report.
Other combustion engines not included. In engine technology Wärtsilä has a leading position.

15. 15 © Wärtsilä
Ship Power order
intake supported by
activity in gas carriers
and cruise vessels

16. Vessel contracting development
250
200
150
100
50
Source: Clarkson Research Services, figures exclude late contracting
* CGT= gross tonnage compensated with workload
16 © Wärtsilä
*
*
5
4
3
2
1
0
0
01.09
03.09
05.09
07.09
09.09
11.09
01.10
03.10
05.10
07.10
09.10
11.10
01.11
03.11
05.11
07.11
09.11
11.11
01.12
03.12
05.12
07.12
09.12
11.12
01.13
03.13
05.13
07.13
09.13
11.13
01.14
03.14
05.14
07.14
09.14
Million CGT
# of vessels
Merchant Offshore Cruise and Ferry Special vessels 3 months moving average in CGT

17. 1800
1500
1200
900
600
300
0
© Wärtsilä
2010 2011 2012 2013 1-9/2014
MEUR
Review period development
Total EUR 1,286 million (1,176)
Offshore
27%
Traditional
merchant
11%
Special
vessels
5%
17
Ship Power order intake developed well
Others
1%
Q1-Q3 Q4
Gas carriers
40%
Cruise
and ferry
11%
Navy
5%

18. © Wärtsilä
• Gas handling systems ordered for six new very
large ethane carriers (VLECs), being built for
the Reliance Group based in India
• Scope of supply: complete cargo handling
package for each ship, the solutions cover
everything from loading the gas at the terminal
to keeping it safe during freight and unloading it
at the final destination
• The transportation of ethane is a rapidly
growing segment of the marine gas carrying
business
18
Wärtsilä’s gas handling systems for world’s largest
ethane carriers

19. 600
550
500
450
400
350
300
250
200
150
100
50
© Wärtsilä
• Joint venture order intake totalled
EUR 126 million (143) during
January-September 2014
• Wärtsilä’s share of ownership in
these companies is 50%, and the
results are reported as a share of
result of associates and joint
ventures
MEUR
Joint venture order intake, includes figures from Wärtsilä Hyundai Engine Company Ltd.
and Wärtsilä Qiyao Diesel Company Ltd.
Ship Power order intake
19
Joint venture ordering continues active
0
Q1/2010
Q2/2010
Q3/2010
Q4/2010
Q1/2011
Q2/2011
Q3/2011
Q4/2011
Q1/2012
Q2/2012
Q3/2012
Q4/2012
Q1/2013
Q2/2013
Q3/2013
Q4/2013
Q1/2014
Q2/2014
Q3/2014

20. Medium-speed main engines
Caterpillar
11%(11)
Auxiliary engines
Others
98%(98)
Wärtsilä’s market shares are calculated on a 12 months rolling basis, numbers in brackets are from the end of the
previous quarter. The calculation is based on Wärtsilä’s own data portal.
© Wärtsilä
Wärtsilä
51%(52)
Others
21%(20)
MAN D&T
17%(17)
Total market volume last 12 months:
4,554 MW (4,139)
Wärtsilä
2%(2)
Total market volume last 12 months:
7,628 MW (7,860)
20
Ship Power market
Market position of Wärtsilä’s marine engines

21. 21 © Wärtsilä
Focus on growth in
Services is paying off

22. 2000
1800
1600
1400
1200
1000
800
600
400
200
© Wärtsilä
0
-3%
2010 2011 2012 2013 1-9/2014
600
500
400
300
200
100
0
Q3/2013 Q3/2014
MEUR
Third quarter development
MEUR
435
9% 472
0%
22
Growth in Services net sales
5%
Q1-Q3 Q4

23. Services net sales distribution 1-9/2014
© Wärtsilä
Spare parts
51%(53)
Field service
24%(23)
Contracts
17%(17)
Projects
8%(7)
23
Total EUR 1,375 million (1,334)

24. © Wärtsilä
• 5-year technical management agreement signed
with Harvey Gulf International Marine LLC
• Scope of supply: condition based maintenance
and dynamic maintenance planning for 8 new
offshore vessels
• The agreement ensures ideal running conditions
and reduced operating costs through optimised
timing of major overhauls and reduced
consumption of spare parts
24
Continued interest for marine service agreements

25. Development of Service agreements
14000
12000
10000
8000
6000
4000
2000
25 © Wärtsilä
30%
25%
20%
15%
10%
5%
0%
0
2009 2010 2011 2012 2013 Q3 2014
MW under agreement - Power MW under agreement - Marine
% of Total installed Base - Power % of Total installed Base - Marine
MW

26. © Wärtsilä
Fleet utilisation
Anchored Vessels & Fleet Development*
35%
30%
25%
20%
10,5
10,0
9,5
9,0
8,5
* Source Bloomberg. Sample of more than 25 000 vessels (>299 GT) covered by IHS AIS Live.
** Source Bloomberg
26
Fleet utilisation
Fleet Average Speed, knots**
22500
22000
21500
21000
20500
15%
03.12
06.12
09.12
12.12
03.13
06.13
09.13
12.13
03.14
06.14
09.14
Nr of Active Vessels
Percent Anchored
Anchored Active Fleet
8,0
03.12
06.12
09.12
12.12
03.13
06.13
09.13
12.13
03.14
06.14
09.14

27. 27 © Wärtsilä
Solid financial
standing

28. Cash flow from operating activities
MEUR
700
600
500
400
300
200
100
28 © Wärtsilä
Review period development
MEUR
300
250
200
150
100
50
0
1-9/2013 1-9/2014
0
2010 2011 2012 2013

29. 118
2000
1800
1600
1400
1200
1000
800
600
400
200
© Wärtsilä
235
465
313
2.6%
5.6%
9.8%
6.8%
25%
20%
15%
10%
5%
0%
0
Review period development
1600
1400
1200
1000
800
600
400
200
2010 2011 2012 2013
Working capital Total inventories Advances received Working capital / Net sales
MEUR
29
Focus on working capital development
488
379
10.3%*
8.2%*
12%
10%
8%
6%
4%
2%
0%
0
30.9.2013 30.9.2014
MEUR
* Working capital / 12 months rolling net sales

30. Gearing remains low
0,50
0,40
0,30
0,20
0,10
0,00
30 © Wärtsilä
0,50
0,40
0,30
0,20
0,10
0,00
30.9.2013 30.9.2014
-0,10
2010 2011 2012 2013
Review period development

31. © Wärtsilä
• Power Plants: Power generation markets closely follow
the global macroeconomic development. Based on the
difficult market situation seen during the three first
quarters of the year and the revised GDP forecasts for
2014, the overall market for liquid and gas fuelled power
generation is expected to continue to be challenging.
• Ship Power: Overcapacity continues to affect the
demand for traditional merchant vessels. In the offshore
segment, the contracting of drilling units and certain
support vessels is expected to continue on a lower
level. The outlook for gas carriers remains positive,
although the recent strong ordering volumes may affect
activity in the short term.
• Services: The overall service market outlook remains
stable, with positive developments in selected regions.
31
Market outlook

32. Prospects for 2014 revised
32 © Wärtsilä
Wärtsilä estimates its profitability for
2014 (EBIT% before non-recurring
items) to be 11.5-12.0%. Wärtsilä
reiterates its expectation that net
sales will grow by around 5%.

33. IR Contact:
Natalia Valtasaari
Director, Investor Relations
Tel. +358 (0) 40 187 7809
E-mail: natalia.valtasaari@wartsila.com