Result presentation 2019

1. © Wärtsilä PUBLIC
WÄRTSILÄ CORPORATION
RESULT PRESENTATION 2019
30 January 2020
Jaakko Eskola, President & CEO
30 January 2020 RESULT PRESENTATION 20191

2. © Wärtsilä PUBLIC
Third quarter burdened by project
related challenges and low equipment
demand – services activity remains sound
2019 – A year marked by
difficult market conditions and
project related challenges

3. © Wärtsilä PUBLIC
KEY FIGURES 2019
Order intake EUR 5,327 million, -16%
Order book at the end of the period
EUR 5,878 million, -5%
Net sales EUR 5,170 million, -0%
Book-to-bill 1.03 (1.22)
Comparable operating result EUR 457 million
(577), or 8.8% of net sales (11.2)
Earnings per share EUR 0.37 (0.65)
Cash flow from operating activities
EUR 232 million (470)
Dividend proposal EUR 0.48
per share (0.48)

4. © Wärtsilä PUBLIC
61%
39%
Wärtsilä Marine
Wärtsilä Energy
RESULT PRESENTATION 20194
Order intake declined despite sequential improvement in Q4
Rolling 12m, MEUR
1,874 1,555
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
Q118-Q418 Q218-Q119 Q318-Q219 Q418-Q319 Q119-Q419
Q4
-17%
Fourth quarter 2019 and comparison 2018
30 January 2020
46%
54% Services
Equipment
Order intake
by business type
Order intake
by business area
Fourth quarter development
(45)
(55)
(63)
(37)

5. © Wärtsilä PUBLIC RESULT PRESENTATION 20195
Net sales growth in marine equipment and services offset the decline
in energy equipment
1,532 1,684
0
1,000
2,000
3,000
4,000
5,000
6,000
Q118-Q418 Q218-Q119 Q318-Q219 Q418-Q319 Q119-Q419
Rolling 12m, MEUR
Fourth quarter 2019 and comparison 2018
30 January 2020
Q4
+10%
61%
39%
Wärtsilä Marine
Wärtsilä Energy
44%56% Services
Equipment
Net sales
by business type
Net sales
by business area
Fourth quarter development
(46)
(54)
(52) (48)

6. © Wärtsilä PUBLIC RESULT PRESENTATION 20196
Book-to-bill
1.15 1.15
1.20
1.17
1.22
1.18 1.15 1.13
1.03
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
Q117-Q417 Q217-Q118 Q317-Q218 Q417-Q318 Q118-Q418 Q218-Q119 Q318-Q219 Q418-Q319 Q119-Q419
Order intake Net sales Book-to-bill
Rolling 12m, MEUR
30 January 2020

7. © Wärtsilä PUBLIC RESULT PRESENTATION 20197
Order book distribution
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
31.12.2018 31.12.2019
Delivery next year Delivery after next year
MEUR
30 January 2020

8. © Wärtsilä PUBLIC RESULT PRESENTATION 20198
Comparable operating result still burdened by project cost overruns
11.2% 11.3% 11.1%
9.6%
8.8%
0%
2%
4%
6%
8%
10%
12%
0
100
200
300
400
500
600
700
Q118-Q418 Q218-Q119 Q318-Q219 Q418-Q319* Q119-Q419*
Comparable operating result Comparable operating result, %
11.2%
8.8%
0%
2%
4%
6%
8%
10%
12%
14%
0
100
200
300
400
500
600
700
1-12/2018 1-12/2019*
Rolling 12m, MEUR Review period development
MEUR
◼ Wärtsilä
Energy
◼ Wärtsilä
Marine
◼ Wärtsilä Group,
% of sales
30 January 2020
* The operating result for 2019 includes a charge related to cost overruns in certain large and complex project deliveries in the Marine and Energy businesses:
• EUR 84 million in January-September, of which EUR 17 million recognised in Wärtsilä Marine and EUR 67 million in Wärtsilä Energy
• EUR 152 million in January-December, of which EUR 51 million recognised in Wärtsilä Marine and EUR 101 million in Wärtsilä Energy

9. © Wärtsilä PUBLIC
0
100
200
300
400
500
600
700
2015 2016 2017 2018 2019
RESULT PRESENTATION 20199
Cash flow from operating activities
MEUR
30 January 2020

10. © Wärtsilä PUBLIC RESULT PRESENTATION 201910
Working capital
543
490
563 581
732
10.8% 10.2%
11.5%
11.2%
14.2%
0%
5%
10%
15%
20%
0
250
500
750
1,000
1,250
1,500
2015 2016 2017 2018 2019
Working capital Total inventories Advances received Working capital / net sales
MEUR
30 January 2020

11. © Wärtsilä PUBLIC RESULT PRESENTATION 201911
Gearing
0.00
0.10
0.20
0.30
0.40
0.50
2015 2016 2017 2018 2019*
30 January 2020
* Excluding the impact of lease liabilities, gearing amounted to 0.22.

12. © Wärtsilä PUBLIC 30 January 2019 Full year result presentation 201812
Earnings and dividend per share
0.75
0.60
0.63 0.65
0.37
0.40
0.43
0.46 0.48 0.48
0.00
0.10
0.20
0.30
0.40
0.50
0.60
0.70
0.80
0.90
1.00
2015 2016 2017 2018 2019*
EPS Dividend
*Proposal of the Board
Figures for 2015-2017 have been restated to reflect the increased number of shares.
EUR

13. © Wärtsilä PUBLIC
Wärtsilä
Marine Business

14. © Wärtsilä PUBLIC14
Market sentiment still cautious – improvement in specialised vessels
Specialised tonnageTotal vessel contracting
Source: Clarksons Research, contracting as per January 8th, 2020
CGT= gross tonnage compensated with workload
WÄRTSILÄ MARINE BUSINESS
30 January 2020 RESULT PRESENTATION 2019
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
0
50
100
150
200
250
01/10
05/10
09/10
01/11
05/11
09/11
01/12
05/12
09/12
01/13
05/13
09/13
01/14
05/14
09/14
01/15
05/15
09/15
01/16
05/16
09/16
01/17
05/17
09/17
01/18
05/18
09/18
01/19
05/19
09/19
MillionCGT
Numberofvessels
Merchant Offshore
Cruise and Ferry Special vessels
3 months moving average in CGT
0
10
20
30
40
50
60
70
80
01/10
05/10
09/10
01/11
05/11
09/11
01/12
05/12
09/12
01/13
05/13
09/13
01/14
05/14
09/14
01/15
05/15
09/15
01/16
05/16
09/16
01/17
05/17
09/17
01/18
05/18
09/18
01/19
05/19
09/19
Numberofvessels
Offshore Cruise and Ferry Special vessels LNG carriers LPG carriers

15. © Wärtsilä PUBLIC RESULT PRESENTATION 201915
Order intake development
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
0
200
400
600
800
1,000
1,200
10-12/2018 1-3/2019 4-6/2019 7-9/2019 10-12/2019
Wärtsilä Marine, equipment
Wärtsilä Marine, services
Wärtsilä Marine total, rolling 12 months
WÄRTSILÄ MARINE BUSINESS
QTD, MEUR Rolling 12m, MEUR
53%
4%
21%
1%
13%
5% 3%
28%
15%
9%
11%
24%
11%
2%
Services
order intake
by segment
Equipment
order intake
by segment
◼ Offshore
◼ Navy
◼ Special Vessels
◼ Merchant
◼ Others
◼ Cruise & Ferry
◼ Gas carriers
30 January 2020
Fourth quarter development

16. © Wärtsilä PUBLIC 30 January 2020 RESULT PRESENTATION 201916
Marine installed base covered by long-term service agreements
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
0
5,000
10,000
15,000
20,000
25,000
2014 2015 2016 2017 2018 2019
MW under agreement % of Marine installed base
WÄRTSILÄ MARINE BUSINESS
MW

17. © Wärtsilä PUBLIC RESULT PRESENTATION 201917
Net sales development
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
0
200
400
600
800
1,000
1,200
10-12/2018 1-3/2019 4-6/2019 7-9/2019 10-12/2019
Wärtsilä Marine, equipment
Wärtsilä Marine, services
Wärtsilä Marine total, rolling 12 months
23%
13%
5%
6%
53%
Spare parts Field service
Service agreements Service projects
Wärtsilä Marine, equipment
WÄRTSILÄ MARINE BUSINESS
QTD, MEUR Rolling 12m, MEUR
Fourth quarter
development
EUR 1,020 million (831)
30 January 2020
(45)
(6)
(17)
(26)
(6)

18. © Wärtsilä PUBLIC
• Wärtsilä Fleet Operations Solution (FOS)
will be rolled out to Anglo-Eastern’s global
fleet of more than 600 vessels
• The solution integrates individual
processes to optimise voyage planning,
weather routing, fuel consumption, and
the speed of a vessel
ANGLO-EASTERN PARTNERS WITH WÄRTSILÄ TO DIGITALISE ITS FLEET OPERATIONS

19. © Wärtsilä PUBLIC
Wärtsilä
Energy Business

20. © Wärtsilä PUBLIC RESULT PRESENTATION 201920
Market for gas and liquid fuel power plants, <500 MW
19% 21% 17% 13% 14% 15% 14% 17%
0
5,000
10,000
15,000
20,000
25,000
Q117-Q417 Q217-Q118 Q317-Q218 Q417-Q318 Q118-Q418 Q218-Q119 Q318-Q219 Q418-Q319
Wärtsilä Others
WÄRTSILÄ ENERGY BUSINESS
Rolling 12m, MW
30 January 2020
The total market, including also power plants with prime movers above 500 MW, remained stable at 43.0 GW during the twelve-month period ending in September 2019 (42.8 at the end of June).
Market shares are calculated on a 12 months rolling basis. Market data includes all Wärtsilä power plants and other manufacturers’ gas and liquid fuelled gas turbine based power plants with prime movers below 500 MW, as well as the estimated output of steam turbines
for combined cycles. The data is gathered from the McCoy Power Report. The main gas turbine competitors are GE, Siemens, Mitsubishi, and Ansaldo. Other combustion engines are not included.

21. © Wärtsilä PUBLIC
11%
41%
23%
25%
32%
26%
26%
16%
Services
order intake
by segment
Equipment
order intake
by segment
◼ Independent Power Producers
◼ Industrials
◼ Others
◼ Utilities
RESULT PRESENTATION 201921
Order intake development
0
500
1,000
1,500
2,000
2,500
0
100
200
300
400
500
600
700
800
900
1,000
10-12/2018 1-3/2019 4-6/2019 7-9/2019 10-12/2019
Wärtsilä Energy, equipment
Wärtsilä Energy, services
Wärtsilä Energy total, rolling 12 months
WÄRTSILÄ ENERGY BUSINESS
QTD, MEUR Rolling 12m, MEUR
30 January 2020
Fourth quarter development

22. © Wärtsilä PUBLIC RESULT PRESENTATION 201922
Orders received for energy equipment globally
WÄRTSILÄ ENERGY BUSINESS
IPP’s
(Independent
Power Producers)
Utilities
Industrials
Order intake 1-12/2019:
1,980 MW (2,911)
Asia 986
(1,426)
Africa and
Middle East
344 (329)
Americas
410 (824)
Europe
240 (332)
30 January 2020
Others

23. © Wärtsilä PUBLIC23
Energy installed base covered by long-term service agreements
0%
5%
10%
15%
20%
25%
30%
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
2014 2015 2016 2017 2018 2019
MW under agreement* % of Wärtsilä Energy installed base
Wärtsilä signed a spare parts
supply agreement in the
Dominican Republic
• The service agreement covers
all three Wärtsilä power plants
owned and/or operated by EGE
Haina, which total approx. 400
MW in installed capacity
• The agreement will allow
accurate predictability of spare
part and maintenance costs
WÄRTSILÄ ENERGY BUSINESS
30 January 2020 RESULT PRESENTATION 2019
MW
*Includes agreements covering both installed assets and assets to be installed in the future

24. © Wärtsilä PUBLIC RESULT PRESENTATION 201924
Net sales development
0
500
1,000
1,500
2,000
2,500
0
200
400
600
800
1,000
10-12/2018 1-3/2019 4-6/2019 7-9/2019 10-12/2019
Wärtsilä Energy, equipment
Wärtsilä Energy, services
Wärtsilä Energy total, rolling 12 months
15%
5%
12%
7%
61%
Spare parts Field service
Service agreements Service projects
Wärtsilä Energy, equipment
WÄRTSILÄ ENERGY BUSINESS
QTD, MEUR Rolling 12m, MEUR
Fourth quarter
development
EUR 664 million (701)
30 January 2020
(61)
(4)
(12)
(17)
(5)

25. © Wärtsilä PUBLIC
COLLABORATING FOR LIFECYCLE INNOVATION
• Wärtsilä’s hybrid, dual-fuel solution
establishes the new Wasaline RoPax ferry
as a benchmark in efficiency and
sustainability
• Predictive maintenance lowers operating
costs and improves reliability
• Wärtsilä benefits in the form of a floating
technology demonstrator and R&D lab
in connection to the Smart Technology
Hub being built in Vaasa
MODULAR BLOCK TO MODERNISE POWER GENERATION IN MALI
• Wärtsilä secured the first order of the
innovative Modular Block solution, to be
delivered to an off-grid gold mine in Mali
• The solution will replace the existing diesel
generators, create substantial monthly
savings in fuel costs, and facilitate the
integration of renewables into the mine’s
energy system

26. © Wärtsilä PUBLIC
PROSPECTS
The demand for Wärtsilä’s services and
solutions in 2020 is expected to be
somewhat below that of 2019.
Demand by business area is anticipated
to be as follows:
• Soft in Wärtsilä Marine Business
• Soft in Wärtsilä Energy Business

27. THANK YOU
Further information:
Natalia Valtasaari
Vice President, Investor Relations
Tel. +358 (0) 10 709 5637
E-mail: natalia.valtasaari@wartsila.com