© Wärtsilä

WÄRTSILÄ CORPORATION BANK OF AMERICA MERRILL LYNCH GLOBAL INDUSTRIALS CONFERENCE 2014 18 MARCH 2014 Björn Rosengren, President & CEO

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Net sales by business 2013

Ship Power 28%

Power Plants 31%

Services 40%

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Profitability developed well

MEUR

Figures shown before nonrecurring restructuring items

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12.1%

10.7% 11.1% 10.9% 11.2%

12.8%

11.0% 11.5% 11.7% 11.9%

0%

2%

4%

6%

8%

10%

12%

14%

0

1000

2000

3000

4000

5000

6000

2009 2010 2011 2012 2013

Net sales EBIT % EBITA % before intangible asset amortisation related to acquisitions

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Order intake reflects market situation

0

1000

2000

3000

4000

5000

6000

2009 2010 2011 2012 2013

MEUR

4

Power Plants Ship Power Services

-15%

14%

-4%

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0

1000

2000

3000

4000

Delivery next year Delivery after next year

31.12.2012 31.12.2013

MEUR

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Order book distribution

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0

1

2

3

4

5

0

50

100

150

200

250

01.0

9 02

.09

03.0

9 04

.09

05.0

9 06

.09

07.0

9 08

.09

09.0

9 10

.09

11.0

9 12

.09

01.1

0 02

.10

03.1

0 04

.10

05.1

0 06

.10

07.1

0 08

.10

09.1

0 10

.10

11.1

0 12

.10

01.1

1 02

.11

03.1

1 04

.11

05.1

1 06

.11

07.1

1 08

.11

09.1

1 10

.11

11.1

1 12

.11

01.1

2 02

.12

03.1

2 04

.12

05.1

2 06

.12

07.1

2 08

.12

09.1

2 10

.12

11.1

2 12

.12

01.1

3 02

.13

03.1

3 04

.13

05.1

3 06

.13

07.1

3 08

.13

09.1

3 10

.13

11.1

3 12

.13

01.1

4 02

.14

Mill

ion

CG

T

# of

ves

sels

Merchant Offshore Cruise and Ferry Special vessels 3 months moving average in CGT

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Source: Clarkson Research Services

* CGT= gross tonnage compensated with workload

*

*

Vessel contracting remains active

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Growth in Ship Power order intake

MEUR

0

200

400

600

800

1000

1200

1400

1600

1800

2000

2009 2010 2011 2012 2013

34%

42%

6%

8%

7% 3%

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Cruise and ferry Merchant

Special vessels Offshore Navy

Other

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The most complete marine offering

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Ship Power focus areas

Efficiency Gas and dual-fuel solutions

Environmental solutions

Offshore market

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Continued interest in gas engines and systems

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Power generation markets challenging

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0

5 000 000

10 000 000

15 000 000

20 000 000

25 000 000

-2,00

-1,00

0,00

1,00

2,00

3,00

4,00

5,00

6,00

7,00

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012

Elec

tric

ity c

onsu

mpt

ion

GW

h

Gro

wth

%

Electricity consumption growth vs. GDP growth

GDP yearly growth rate Electricity production growth rate Electricity domestic consumption

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0

200

400

600

800

1000

1200

1400

1600

1800

2000

2009 2010 2011 2012 2013

Review period development Total EUR 1,292 million (1,515)

IPP’s*

Utilities

Industrials

Oil 18%

Gas 82%

Review period order intake by fuel in MW

x%

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Power Plants order intake by customer segment

46%

23%

31%

*IPP = Independent Power Producer

MEUR

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Power Plants installed base

Others

IPP:s Utilities

Industry

Europe: Output: 12.5 GW

Asia: Output: 19.8 GW

Africa & Middle East: Output: 12.5 GW

* December 2013

Americas: Output: 11.7 GW

Total: 56.2 GW Countries: 169 Plants: 4,700

Power Plants’ strategic focus

Energy Efficiency

Operational Flexibility

Fuel Flexibility

Smart Power

Generation

• Maintain market leader position in flexible baseload and industrial self-generation in the growing emerging markets

• Grow in the large utility gas power plant markets

• Actively influence the regulatory environment to enable capacity investments

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Developing medium-scale LNG infrastructure

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Service markets remain stable

MEUR

0

200

400

600

800

1000

1200

1400

1600

1800

2000

2009 2010 2011 2012 2013

23%

17%

8%

52%

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Projects Field service Spare parts

Contracts

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Development of installed engine base

0

20000

40000

60000

80000

100000

120000

140000

160000

180000

200000

2008 2009 2010 2011 2012 2013

Power Plants Ship Power

MW

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Wärtsilä’s service agreements around the world

Americas 5,140 MW

South Europe & Africa

4,930 MW

Middle East & Asia

5,390 MW

North Europe

2,900 MW

Power Marine

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Wärtsilä Services’ global network Widest range of offering and expertise

70 countries, 160 locations, 11,000 service professionals

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Installed base 182,000 MW

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Positioned for growth even in challenging markets

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Smart Power Generation

Gas as a fuel

Environmental solutions

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Solid financial standing

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0

100

200

300

400

500

600

700

2009 2010 2011 2012 2013

MEUR

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Strong development in cash flow from operating activities

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Working capital Total inventories Advances received Working capital / Net sales

MEUR

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Working capital Good development in advances received

267

486

118 235

465

313

5.8%

9.2%

3.7%

6.8%

9.8%

6.7%

0%

5%

10%

15%

20%

25%

0

200

400

600

800

1000

1200

1400

1600

1800

2000

2008 2009 2010 2011 2012 2013

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Solvency Gearing

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

2009 2010 2011 2012 2013 -0,10

0,00

0,10

0,20

0,30

0,40

0,50

2009 2010 2011 2012 2013

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Financial position

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An organisation based on divisions with end-to-end responsibility

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TRANSPARENCY ACCOUNTABILITY SPEED

Sales & marketing

Product delivery R&D Production Customer

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• Aim to secure future profitability and competitiveness

• Planned reductions of approx. 1,000 jobs globally

• Expected annual savings of EUR 60 million

• Non-recurring costs EUR 50 million, of which EUR 11 million recognised in 2013

Group-wide efficiency programme initiated

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Market outlook

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• Power Plants: Based on the forecasted GDP growth in 2014, the overall market for liquid and gas fuelled power generation is expected improve slightly. Ordering activity remains focused on emerging markets, which continue to invest in new power generation capacity.

• Ship Power: The main drivers supporting activity in shipping and offshore are in place. Overall contracting is expected to remain on improved levels, keeping in mind the prevailing overcapacity and the market’s limited capacity to absorb new tonnage.

• Services: The overall service market outlook remains stable.

NEW PIC

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Prospects for 2014

Wärtsilä expects its net sales for 2014 to grow by

0-10% and its operational profitability (EBIT% before non-recurring items) to be around 11%.

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WARTSILA.COM

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