This document summarizes the financial results of Wärtsilä Corporation for 2016. Key highlights include stable order intake, a decrease in net sales of 5%, an operating result of 12.1% of net sales, and a proposed dividend of EUR 1.30 per share. Order intake in Energy Solutions was strong, while newbuild vessel orders in Marine Solutions were exceptionally low in 2016. Services net sales developed steadily, and the installed base covered by service agreements continued to increase.

1. © Wärtsilä PUBLIC
WÄRTSILÄ CORPORATION
RESULT PRESENTATION 2016
27 January 2017
Jaakko Eskola, President & CEO
27 January 2017 Result presentation 20161

2. © Wärtsilä PUBLIC 27 January 2017 Result presentation 20162
Highlights 2016
• Order intake stable at EUR 4,927 million
• Net sales EUR 4,801 million, -5%
• Book-to-bill 1.03 (0.98)
• Comparable operating result EUR 583 million,
12.1% of net sales (EUR 612 million or 12.2%)
• Earnings per share EUR 1.79 (2.25)
• Cash flow from operating activities EUR 613 million (255)
• Order book at the end of the period EUR 4,696 million, -4%
• Dividend proposal EUR 1.30 per share, to be paid in two
equal instalments

3. © Wärtsilä PUBLIC 27 January 2017 Result presentation 20163
Improved sentiment in the energy markets supported order intake
0
200
400
600
800
1 000
1 200
1 400
1 600
Q4/2015 Q4/2016
Fourth quarter development
0
500
1 000
1 500
2 000
2 500
3 000
3 500
4 000
4 500
5 000
5 500
2012 2013 2014 2015 2016
MEUR
MEUR
Q1-Q3 Q4
-6%
37%
1,403 1,324
-45%
-1%
Energy
Solutions
Marine
Solutions
Services

4. © Wärtsilä PUBLIC 27 January 2017 Result presentation 20164
Net sales developed in line with guidance
0
200
400
600
800
1 000
1 200
1 400
1 600
1 800
Q4/2015 Q4/2016
1,590
0
500
1 000
1 500
2 000
2 500
3 000
3 500
4 000
4 500
5 000
5 500
2012 2013 2014 2015 2016
-2%
3%
-15%
11%
Fourth quarter development
Energy
Solutions
Marine
Solutions
Services
MEUR
Q1-Q3 Q4
MEUR
1,559

5. © Wärtsilä PUBLIC 27 January 2017 Result presentation 20165
Net sales by business 2016
Marine Solutions
35% (34)
Energy Solutions
20% (22)
Services
46% (43)

6. © Wärtsilä PUBLIC
1.05 1.05 1.06
0.98
1.03
0,0
0,2
0,4
0,6
0,8
1,0
1,2
1,4
0
500
1 000
1 500
2 000
2 500
3 000
3 500
4 000
4 500
5 000
5 500
2012 2013 2014 2015 2016
27 January 2017 Result presentation 20166
Book-to-bill
MEUR
Order intake Net sales Book-to-bill

7. © Wärtsilä PUBLIC 27 January 2017 Result presentation 20167
Order book distribution
0
500
1 000
1 500
2 000
2 500
3 000
3 500
31.12.2015 31.12.2016
Delivery next year Delivery after next year
MEUR

8. © Wärtsilä PUBLIC 27 January 2017 Result presentation 20168
Operating result supported by good fourth quarter
10.9%
11.2%
11.9%
12.2% 12.1%
0%
2%
4%
6%
8%
10%
12%
14%
0
100
200
300
400
500
600
700
2012 2013 2014 2015 2016
MEUR
Items affecting comparability include restructuring costs of EUR 48 million (19) and acquisition related & other costs of EUR 3 million (6) for the review period January-December 2016.
Figures for 2012-2013 include both discontinued and continuing operations.
Comparable operating result % of net sales

9. © Wärtsilä PUBLIC 27 January 2017 Result presentation 20169
ENERGY SOLUTIONS

10. © Wärtsilä PUBLIC 27 January 2017 Result presentation 201610
Quotation activity per fuel type
ENERGY SOLUTIONS
0
10 000
20 000
30 000
40 000
50 000
60 000
Q4/2013
Q1/2014
Q2/2014
Q3/2014
Q4/2014
Q1/2015
Q2/2015
Q3/2015
Q4/2015
Q1/2016
Q2/2016
Q3/2016
Q4/2016
MW
Liquid fuel
Multi-fuel
Gas
Calculated on a 12 months rolling basis

11. © Wärtsilä PUBLIC 27 January 2017 Result presentation 201611
Strong ordering activity in Energy Solutions
ENERGY SOLUTIONS
0
200
400
600
800
1 000
1 200
1 400
1 600
1 800
2012 2013 2014 2015 2016
MEUR
Utilities
Industrials
Review period development
Total EUR 1,448 million (1,009)
Review period order intake
by fuel in MW
Gas
45%
Oil
55%
Q1-Q3 Q4
Independent
power producers
27%
53%
19%

12. © Wärtsilä PUBLIC 27 January 2017 Result presentation 201612
ENERGY SOLUTIONS
575282
228
919
Order intake 2016: 3,513 MW (2,436)
632
IPP’s
(Independent
Power Producers)
Utilities
Industrials
Order intake globally
*Turkish owners contributed to the high level of activity in Europe.
64
118
257
94
234
55
Africa and Middle East 540 (457)
Asia 960 (299)
Americas 921 (638)
Europe* 1,093 (1,042)
56

13. © Wärtsilä PUBLIC 27 January 2017 Result presentation 201613
• As part of its climate action plan,
Germany has committed to increasing
the share of electricity produced by
CHP power plants to 25% of the total
electricity production by 2025.
• Unlike traditional CHP power plants,
Wärtsilä gas engines enable quick power
output adjustments to respond to the
fluctuations in power demand as signalled
by the electricity price.
Wärtsilä to deliver a 100 MW
combined heat and power (CHP)
plant to Germany

14. © Wärtsilä PUBLIC 27 January 2017 Result presentation 201614
Market for gas and liquid fuel power plants, <500 MW
ENERGY SOLUTIONS
1-9/2015 1-9/2016
Market data includes all Wärtsilä power plants and other manufacturers’ gas and liquid fuelled gas 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.
<500 MW market volume: 17.4 GW (17.0), +2%
Total market volume: 49.2 GW (43.9), +12%
GE
38.8%
Siemens
25.2%
Wärtsilä
9.9%
MHI
19.8%
Other GT’s
0.8%
GE
35.2%
Siemens
25.3%
Wärtsilä
14.7%
MHI
12.0%
Other GT’s
5.6%
Ansaldo
5.5% Ansaldo
7.2%

15. © Wärtsilä PUBLIC 27 January 2017 Result presentation 201615
MARINE SOLUTIONS

16. © Wärtsilä PUBLIC
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
01.09
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
11.11
01.13
03.13
05.13
07.13
09.13
11.13
01.14
03.14
05.14
07.14
09.14
11.14
01.15
03.15
05.15
07.15
09.15
11.15
01.16
03.16
05.16
07.16
09.16
11.16
MillionCGT
Numberofvessels
Merchant Offshore Cruise and Ferry Special vessels 3 months moving average in CGT
27 January 2017 Result presentation 201616
Exceptionally low newbuild vessel orders in 2016
MARINE SOLUTIONS
Source: Clarkson Research Services, figures exclude late contracting
* CGT= gross tonnage compensated with workload
*
*
12.16

17. © Wärtsilä PUBLIC 27 January 2017 Result presentation 201617
Cruise & ferry supported Marine Solutions’ order intake
MARINE SOLUTIONS
0
300
600
900
1 200
1 500
1 800
2012 2013 2014 2015 2016
Review period development
Total EUR 1,285 million (1,599)
Offshore
3%
Traditional
merchant
20%
Others
7%
Gas carriers
13%
Navy
10%
MEUR
Q1-Q3 Q4
Cruise &
ferry
38%
Special vessels
9%

18. © Wärtsilä PUBLIC 27 January 2017 Result presentation 201618
Marine Solutions’ order book 31 December 2016
MARINE SOLUTIONS
Offshore
12%
Cruise & Ferry
27%
Navy
13%
Special vessels
7%
Non-vessel
3%
Other vessel
1%
Gas carriers
21%
Tankers
4%
Other merchant
2%
Bulk carriers
1%
Containers
5%
Cargo
1%RoRo
3%

19. © Wärtsilä PUBLIC 27 January 2017 Result presentation 201619
• UK based Wightlink ordered a
comprehensive range of modern equipment
and systems to ensure a high level of
environmental efficiency for their new ferry.
This will be the first ferry to utilise Wärtsilä
hybrid battery technology.
• Construcciones Navales del Norte SL
ordered an LNG power and propulsion
installation for its new RoRo passenger
ferry. This eco-efficient ‘smartship’
will be the first gas-powered RoRo
passenger ferry operating in the
Mediterranean Sea.
Upcoming environmental
regulations support the demand
for Wärtsilä’s solutions
Kuva
pitää
vaihtaa,
bonny
kalvon
kuva voisi
sopia
tähän

20. © Wärtsilä PUBLIC 27 January 2017 Result presentation 201620
Strong position in marine engine market
MARINE SOLUTIONS
Medium-speed main engines Auxiliary engines
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
51% (50)
Others
10% (11)
MAN D&T
24% (24)
Caterpillar
15% (15)
Total market volume last 12 months:
2,392 MW (2,358)
Wärtsilä
18% (16)
Total market volume last 12 months:
2,029 MW (3,617)
Others
82% (84)

21. © Wärtsilä PUBLIC 27 January 2017 Result presentation 201621
SERVICES

22. © Wärtsilä PUBLIC
0
200
400
600
800
1 000
1 200
1 400
1 600
1 800
2 000
2 200
2 400
2012 2013 2014 2015 2016
27 January 2017 Result presentation 201622
Stable development in Services’ net sales
SERVICES
0
100
200
300
400
500
600
700
Q4/2015 Q4/2016
MEUR
MEUR
619
3%
636
Fourth quarter development
Q1-Q3 Q4

23. © Wärtsilä PUBLIC 27 January 2017 Result presentation 201623
Net sales distribution 2016
SERVICES
By product area By segment
Spare parts
49% (51)
Field service
23% (23)
Projects
13% (10)
Agreements
15% (16)
Merchant
24% (24)
Energy Solutions
39% (37)
Cruise & Ferry
13% (11)
Navy
8% (7)
Special Vessels
7% (8)
Offshore
9% (13)
Total EUR 2,190 million (2,184)

24. © Wärtsilä PUBLIC 27 January 2017 Result presentation 201624
Installed base totalling 180,000 MW
0
20 000
40 000
60 000
80 000
100 000
120 000
140 000
160 000
180 000
200 000
2012 2013 2014 2015 2016
SERVICES
MW
Energy Solutions Marine Solutions, 4-stroke Marine Solutions, 2-stroke

25. © Wärtsilä PUBLIC
0%
5%
10%
15%
20%
25%
30%
0
2 000
4 000
6 000
8 000
10 000
12 000
14 000
16 000
2009 2010 2011 2012 2013 2014 2015 2016
MW
27 January 2017 Result presentation 201625
Installed base covered by service agreements
SERVICES
MW under agreement – Energy Solutions MW under agreement – Marine Solutions
% of Marine Solutions’ installed base% of Energy Solutions’ installed base

26. © Wärtsilä PUBLIC 27 January 2017 Result presentation 201626
• 12-year agreement
• Ensuring safety and reliability of Carnival’s fleet
• Reducing operational costs
• Wärtsilä provides all engine maintenance and
monitoring for fleet of 79 vessels
• Continuous planning together with Carnival
• Performance-based revenue model
• Wärtsilä’s biggest service contract in history
• Digitising fleet operations
Wärtsilä and Carnival Corporation
announce strategic partnership

27. © Wärtsilä PUBLIC 27 January 2017 Result presentation 201627
FINANCIALS

28. © Wärtsilä PUBLIC 27 January 2017 Result presentation 201628
Operating cash flow development
FINANCIALS
0
100
200
300
400
500
600
700
2012 2013 2014 2015 2016
MEUR

29. © Wärtsilä PUBLIC
465
313
251
543
490
9.8%
6.8%
5.2%
10.8%
10.2%
0%
5%
10%
15%
20%
25%
0
200
400
600
800
1 000
1 200
1 400
1 600
2012 2013 2014 2015 2016
27 January 2017 Result presentation 201629
Working capital development
FINANCIALS
MEUR
Working capital Total inventories Advances received Working capital / Net sales

30. © Wärtsilä PUBLIC
0,00
0,10
0,20
0,30
0,40
0,50
2012 2013 2014 2015 2016
27 January 2017 Result presentation 201630
Gearing
FINANCIALS

31. © Wärtsilä PUBLIC
* Dividend 2016 - Proposal of the Board
0,0
0,5
1,0
1,5
2,0
2,5
2012 2013 2014 2015 2016*
27 January 2017 Result presentation 201631
EPS and dividend per share
FINANCIALS
EUR
EPS Dividend
1.79
1.30

32. © Wärtsilä PUBLIC 27 January 2017 Result presentation 201632
The overall demand for Wärtsilä’s services
and solutions in 2017 is expected to be
relatively unchanged from the previous
year. Demand by business area is
anticipated to develop as follows:
• Solid in Services with growth
opportunities
• Solid in Energy Solutions
• Soft in Marine Solutions
Prospects for 2017
Setti 1
Setti 1

33. © Wärtsilä PUBLIC 27 January 2017 Result presentation 201633
THANK YOU
Further information:
Natalia Valtasaari
Director, Investor & Media Relations
Tel. +358 (0) 10 709 5637
E-mail: natalia.valtasaari@wartsila.com