Wärtsilä Corporation reported its interim results for the second quarter of 2016. Order intake increased 3% to EUR 1,194 million while net sales declined 3% to EUR 1,196 million. The operating result was EUR 122 million, a 10.2% margin. Key highlights included solid order intake growth, stable net sales, improved cash flow, and a book-to-bill ratio of 1.00. The order book ended at EUR 5,083 million, down 5% year-on-year.

1. © Wärtsilä PUBLIC
WÄRTSILÄ CORPORATION
INTERIM REPORT JANUARY-JUNE 2016
20 July 2016
Jaakko Eskola, President & CEO
20 July 2016 Q2 Result presentation1

2. © Wärtsilä PUBLIC 20 July 2016 Q2 Result presentation2
Highlights Q2/2016
• Order intake EUR 1,194 million, +3%
• Net sales EUR 1,196 million, -3%
• Book-to-bill 1.00 (0.94)
• Comparable operating result EUR 122 million, 10.2%
of net sales (EUR 137 million or 11.1%)
• Earnings per share EUR 0.19 (0.54)*
• Cash flow from operating activities EUR 202 million (47)
• Order book at the end of the period EUR 5,083 million, -5%
*Write-downs of approx. EUR 42 million related to the divestment of the Winterthur Gas &
Diesel joint venture, realised exchange rate losses from Brazilian projects, and other
receivables were recognised in the results for the second quarter of 2016.

3. © Wärtsilä PUBLIC 20 July 2016 Q2 Result presentation3
Solid development in order intake
0
200
400
600
800
1 000
1 200
1 400
1 600
Q2/2015 Q2/2016
Second 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-Q2 Q3-Q4
3%
62%
1,159 1,194
-8%
-9%
Energy
Solutions
Marine
Solutions
Services

4. © Wärtsilä PUBLIC 20 July 2016 Q2 Result presentation4
Net sales on a stable level
0
200
400
600
800
1 000
1 200
1 400
Q2/2015 Q2/2016
1,230
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
-3%
-1%
23%
-33%
Second quarter development
Energy
Solutions
Marine
Solutions
Services
MEUR
Q1-Q2 Q3-Q4
MEUR
1,196

5. © Wärtsilä PUBLIC 20 July 2016 Q2 Result presentation5
Net sales by business 1-6/2016
Marine Solutions
36% (30)
Energy Solutions
16% (23)
Services
48% (47)

6. © Wärtsilä PUBLIC
1.05 1.05 1.06 0.98
1.14
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 1-6/2016
20 July 2016 Q2 Result presentation6
Book-to-bill ratio
MEUR
Order intake Net sales Book-to-bill

7. © Wärtsilä PUBLIC 20 July 2016 Q2 Result presentation7
Order book distribution
0
500
1 000
1 500
2 000
2 500
3 000
3 500
30.6.2015 30.6.2016
Delivery current year Delivery next year or later
MEUR

8. © Wärtsilä PUBLIC
0%
2%
4%
6%
8%
10%
12%
14%
0
40
80
120
160
200
240
1-6/2015 1-6/2016
20 July 2016 Q2 Result presentation8
Operating result affected by fewer power plant deliveries and
tight competition
10.9%
11.2%
11.9% 12.2%
0%
2%
4%
6%
8%
10%
12%
14%
0
100
200
300
400
500
600
700
2012 2013 2014 2015
MEUR
Items affecting comparability include restructuring costs of EUR 27 million for the review period January-June 2016.
Figures for 2012-2013 include both discontinued and continuing operations.
Comparable operating result % of net sales
Review period development
MEUR
10.7%
9.5%

9. © Wärtsilä PUBLIC 20 July 2016 Q2 Result presentation9
ENERGY SOLUTIONS

10. © Wärtsilä PUBLIC 20 July 2016 Q2 Result presentation10
Quotation activity on a good level
ENERGY SOLUTIONS
Liquid fuel
Gas
Multi-fuel
MW
0
2 000
4 000
6 000
8 000
10 000
12 000
14 000
16 000
18 000
Q1/2013
Q2/2013
Q3/2013
Q4/2013
Q1/2014
Q2/2014
Q3/2014
Q4/2014
Q1/2015
Q2/2015
Q3/2015
Q4/2015
Q1/2016
Q2/2016

11. © Wärtsilä PUBLIC 20 July 2016 Q2 Result presentation11
Power plant orders developed well
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 616 million (475)
Review period order intake
by fuel in MW
Gas
31%
Oil
69%
Q1-Q2 Q3-Q4
Independent
power producers
14%
57%
28%

12. © Wärtsilä PUBLIC 20 July 2016 Q2 Result presentation12
ENERGY SOLUTIONS
Americas 299 (239)
Asia 368 (111)
Africa and Middle East 299 (175)
Europe* 920 (698)
21547
199
903
Order intake 1-6/2016: 1,886 MW (1,222)
298
IPP’s
(Independent
Power Producers)
Utilities
Industrials
Order intake globally
*Turkish owners contributed to the high level of activity in Europe.
36
18
100
60
9

13. © Wärtsilä PUBLIC 20 July 2016 Q2 Result presentation13
Market for gas and liquid fuel power plants, <500 MW
ENERGY SOLUTIONS
1-3/2015 1-3/2016
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: 4.3 GW (4.7), -9%
Total market volume: 17.7 GW (9.7), +82%
GE
52.4%
Siemens
21.5%
Wärtsilä
15.0%
MHI
10.2%
Other GT’s
0.9%
MHI
34.6%
GE
33.3%
Siemens
10.9%
Wärtsilä
20.4%
Other GT’s
0.8%

14. © Wärtsilä PUBLIC 20 July 2016 Q2 Result presentation14
• EEQ contracts for three power plants,
with a combined output of 192 MW,
signed with Industrias J.F.Secco S.A.
• Two additional projects are expected
to be included in Wärtsilä’s Q3 order book
• The plants will support the development
of Argentina’s national grid
• Dual-fuel technology helps customers
cope with the varying supply
of natural gas
Wärtsilä awarded five major power
plant projects in Argentina

15. © Wärtsilä PUBLIC 20 July 2016 Q2 Result presentation15
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
MillionCGT
Numberofvessels
Merchant Offshore Cruise and Ferry Special vessels 3 months moving average in CGT
20 July 2016 Q2 Result presentation16
Limited contracting of new vessels
MARINE SOLUTIONS
Source: Clarkson Research Services, figures exclude late contracting
* CGT= gross tonnage compensated with workload
*
*
06.16

17. © Wärtsilä PUBLIC 20 July 2016 Q2 Result presentation17
Continued healthy demand in the cruise & ferry segment
MARINE SOLUTIONS
0
300
600
900
1 200
1 500
1 800
2012 2013 2014 2015 2016
Review period development
Total EUR 741 million (728)
Offshore
4%
Traditional
merchant
19%
Others
6%
Gas carriers
11%
Navy
8%
MEUR
Q1-Q2 Q3-Q4
Cruise &
ferry
43%
Special vessels
8%

18. © Wärtsilä PUBLIC 20 July 2016 Q2 Result presentation18
Joint venture ordering activity
MARINE SOLUTIONS
0
100
200
300
400
500
600
700
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
Q4/2014
Q1/2015
Q2/2015
Q3/2015
Q4/2015
Q1/2016
Q2/2016
Marine Solutions order intake
Joint venture order intake, includes figures from Wärtsilä Hyundai Engine Company Ltd,
Wärtsilä Qiyao Diesel Company Ltd and CSSC Wärtsilä Engine (Shanghai) Co. Ltd
MEUR

19. © Wärtsilä PUBLIC 20 July 2016 Q2 Result presentation19
Order received to supply turnkey
electrical solutions for four new RoRo
ferries.
The integrated systems include all
products and services available from
Wärtsilä SAM Electronics, a leading
supplier of complete electrical and
automation system packages.
Sound demand for electrical and
automation solutions
Kuva
pitää
vaihtaa,
bonny
kalvon
kuva voisi
sopia
tähän

20. © Wärtsilä PUBLIC 20 July 2016 Q2 Result presentation20
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
58% (60)
Others
14% (15)
MAN D&T
22% (20)
Caterpillar
6% (5)
Total market volume last 12 months:
2,090 MW (2,307)
Wärtsilä
13% (13)
Total market volume last 12 months:
4,498 MW (5,273)
Others
87% (87)

21. © Wärtsilä PUBLIC 20 July 2016 Q2 Result presentation21
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
20 July 2016 Q2 Result presentation22
Services net sales on a good level
SERVICES
0
100
200
300
400
500
600
700
Q2/2015 Q2/2016
MEUR
MEUR
548
-1%
542
Second quarter development
Q1-Q2 Q3-Q4

23. © Wärtsilä PUBLIC 20 July 2016 Q2 Result presentation23
Net sales distribution 1-6/2016
SERVICES
Spare parts
51% (51)
Field service
24% (24)
Projects
9% (7)
Agreements
15% (17)
Total EUR 1,042 million (1,034)

24. © Wärtsilä PUBLIC
0%
5%
10%
15%
20%
25%
30%
0
2 000
4 000
6 000
8 000
10 000
12 000
14 000
2009 2010 2011 2012 2013 2014 2015 1-6/2016
MW
20 July 2016 Q2 Result presentation24
Development of 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

25. © Wärtsilä PUBLIC 20 July 2016 Q2 Result presentation25
The acquisition of Eniram is a key step in
our digital development, enabling us to
strengthen our competences in data
analytics, modelling and performance
optimization.
American Hydro supports our expansion
in renewables, by enhancing our
existing hydro and industrial service
offering.
Acquisitions support Services’
growth strategy

26. © Wärtsilä PUBLIC 20 July 2016 Q2 Result presentation26
FINANCIALS

27. © Wärtsilä PUBLIC
0
20
40
60
80
100
120
140
160
180
200
1-6/2015 1-6/2016
20 July 2016 Q2 Result presentation27
Cash flow improved in the second quarter
FINANCIALS
0
100
200
300
400
500
600
700
2012 2013 2014 2015
MEUR
Review period development
MEUR

28. © Wärtsilä PUBLIC
404
6028.3%*
12.1%*
0%
5%
10%
15%
20%
25%
0
200
400
600
800
1 000
1 200
1 400
1 600
30.6.2015 30.6.2016
20 July 2016 Q2 Result presentation28
Working capital
FINANCIALS
465
313
251
543
9.8%
6.8%
5.2%
10.8%
0%
5%
10%
15%
20%
25%
0
200
400
600
800
1 000
1 200
1 400
1 600
2012 2013 2014 2015
MEUR
Working capital Total inventories Advances received Working capital / net sales
Review period development
MEUR
* Working capital / 12 months rolling net sales

29. © Wärtsilä PUBLIC
0,00
0,10
0,20
0,30
0,40
0,50
30.6.2015 30.6.2016
20 July 2016 Q2 Result presentation29
Gearing
FINANCIALS
0,00
0,10
0,20
0,30
0,40
0,50
2012 2013 2014 2015
Review period development

30. © Wärtsilä PUBLIC
Market outlook
20 July 2016 Q2 Result presentation30
Energy Solutions
The market for liquid and gas fuelled
power generation is expected to
remain challenging as economic
uncertainty continues. The megatrend
towards renewables is evident, with
investments expected to favour utility
scale solar PV installations.
Furthermore, distributed, flexible, gas-
fired power generation continues to
gain ground globally.
Marine Solutions
The outlook for the shipping and
shipbuilding markets remains
challenging. Overcapacity continues
to limit demand for new vessels in the
merchant segment, while low oil
prices are impacting investments in
offshore exploration and development
and gas carrier market is under
pressure. The outlook for cruise and
ferry segment remains positive.
Services
The service market outlook is positive
with growth opportunities in selected
regions and segments. Customers in
both the marine and power plant
markets continue to show healthy
interest in long-term service contracts,
as evidenced by the growth in the
installed engine base covered by
agreements.

31. © Wärtsilä PUBLIC 20 July 2016 Q2 Result presentation31
Wärtsilä expects its net sales for 2016 to
grow by 0-5% and its profitability
(comparable operating result as a
percent of net sales) to be 12.5-13.0%
Prospects for 2016 unchanged

32. © Wärtsilä PUBLIC 20 July 2016 Q2 Result presentation32
THANK YOU
Further information:
Natalia Valtasaari
Director, Investor & Media Relations
Tel. +358 (0) 10 709 5637
E-mail: natalia.valtasaari@wartsila.com