This document summarizes Wärtsilä Corporation's half year financial report for January-June 2017. Some key highlights include: - Order intake increased 14% in Q2 2017 and book-to-bill was 1.05. - Net sales grew 8% in Q2 2017, supported by higher power plant deliveries. - Comparable operating result was €126 million, representing 9.7% of net sales. - Demand in Services is expected to grow solidly in 2017 while demand in Energy Solutions is anticipated to be good. Demand in Marine Solutions is expected to be solid, raised from the previous expectation of soft.

1. © Wärtsilä PUBLIC
WÄRTSILÄ CORPORATION
HALF YEAR FINANCIAL REPORT
JANUARY-JUNE 2017
20 July 2017
Jaakko Eskola, President & CEO
20 July 2017 Half year financial report 20171

2. © Wärtsilä PUBLIC 20 July 2017 Half year financial report 20172
Highlights Q2/2017
• Order intake EUR 1,363 million, +14%
• Net sales EUR 1,292 million, +8%
• Book-to-bill 1.05 (1.00)
• Comparable operating result EUR 126 million (122),
which represents 9.7% of net sales (10.2)
• Earnings per share EUR 0.38 (0.19)
• Cash flow from operating activities EUR 2 million (202)
• Order book at the end of the period EUR 5,065 million (5,083)

3. © Wärtsilä PUBLIC 20 July 2017 Half year financial report 20173
0
200
400
600
800
1 000
1 200
1 400
1 600
Q2/2016 Q2/2017
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
2013 2014 2015 2016 2017
MEUR
MEUR
Q1-Q2 Q3-Q4
14%
19%
1,194
1,363
11%
14%
Energy
Solutions
Marine
Solutions
Services
Order intake developed well in all business areas

4. © Wärtsilä PUBLIC 20 July 2017 Half year financial report 20174
0
200
400
600
800
1 000
1 200
1 400
1 600
Q2/2016 Q2/2017
1,196
0
500
1 000
1 500
2 000
2 500
3 000
3 500
4 000
4 500
5 000
5 500
2013 2014 2015 2016 2017
8%
1%
-23%
87%
Second quarter development
Energy
Solutions
Marine
Solutions
Services
MEUR
MEUR
1,292
Q1-Q2 Q3-Q4
Net sales supported by higher power plant deliveries

5. © Wärtsilä PUBLIC 20 July 2017 Half year financial report 20175
Net sales by business 1-6/2017
Marine Solutions
27% (36)
Energy Solutions
28% (16)
Services
45% (48)

6. © Wärtsilä PUBLIC
1.05 1.06
0.98
1.03
1.21
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
2013 2014 2015 2016 1-6/2017
20 July 2017 Half year financial report 20176
Book-to-bill
MEUR
Order intake Net sales Book-to-bill

7. © Wärtsilä PUBLIC 20 July 2017 Half year financial report 20177
Order book distribution
0
500
1 000
1 500
2 000
2 500
3 000
3 500
30.6.2016 30.6.2017
Delivery current year Delivery next year or later
MEUR

8. © Wärtsilä PUBLIC 20 July 2017 Half year financial report 20178
11.2%
11.9%
12.2% 12.1%
0%
2%
4%
6%
8%
10%
12%
14%
0
100
200
300
400
500
600
700
2013 2014 2015 2016
MEUR
Items affecting comparability included costs related to restructuring programmes of EUR 8 million (26) in the second quarter of 2017 and EUR 14 million (27) during the review period
January-June. Figures for 2013 include both discontinued and continuing operations.
Comparable operating result % of net sales
9.5% 9.2%
0%
2%
4%
6%
8%
10%
12%
14%
0
40
80
120
160
200
240
1-6/2016 1-6/2017
Review period development
MEUR
Operating result

9. © Wärtsilä PUBLIC 20 July 2017 Half year financial report 20179
SERVICES

10. © Wärtsilä PUBLIC
0
200
400
600
800
1 000
1 200
1 400
1 600
1 800
2 000
2 200
2 400
2013 2014 2015 2016 2017
20 July 2017 Half year financial report 201710
Stable development in Services’ net sales
SERVICES
MEUR
0
100
200
300
400
500
600
700
Q2/2016 Q2/2017
MEUR
542
1%
546
Second quarter development
Q1-Q2 Q3-Q4

11. © Wärtsilä PUBLIC 20 July 2017 Half year financial report 201711
Net sales distribution 1-6/2017
SERVICES
Total EUR 1,035 million (1,042)
By product area By segment
Spare parts
51% (51)
Field service
23% (24)
Projects
9% (9)
Agreements
17% (15)
Merchant
23% (25)
Power plants
38% (37)
Cruise & ferry
16% (13)
Navy
9% (8)
Special vessels
7% (8)
Offshore
7% (9)

12. © Wärtsilä PUBLIC 20 July 2017 Half year financial report 201712
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
0%
5%
10%
15%
20%
25%
30%
0
2 000
4 000
6 000
8 000
10 000
12 000
14 000
16 000
18 000
20 000
2009 2010 2011 2012 2013 2014 2015 2016 1-6/2017
MW

13. © Wärtsilä PUBLIC 20 July 2017 Half year financial report 201713
• The Viking Princess is the first offshore
supply vessel to replace a generator with
batteries
• The storage solution improves efficiency,
generating fuel savings and reducing
CO2 emissions
Wärtsilä to install a hybrid system
with batteries on board
Eidesvik Offshore’s vessel
Copyright: Eidesvik

14. © Wärtsilä PUBLIC 20 July 2017 Half year financial report 201714
ENERGY SOLUTIONS

15. © Wärtsilä PUBLIC
0
10 000
20 000
30 000
40 000
50 000
60 000
Q4/2014
Q1/2015
Q2/2015
Q3/2015
Q4/2015
Q1/2016
Q2/2016
Q3/2016
Q4/2016
Q1/2017
Q2/2017
20 July 2017 Half year financial report 201715
Quotation activity by fuel type
ENERGY SOLUTIONS
Liquid fuel
Multi-fuel
Gas
Calculated on a 12 months rolling basis
MW

16. © Wärtsilä PUBLIC 20 July 2017 Half year financial report 201716
Continued momentum in Energy Solutions’ order intake
ENERGY SOLUTIONS
0
200
400
600
800
1 000
1 200
1 400
1 600
1 800
2013 2014 2015 2016 2017
MEUR
Utilities
Industrials
Review period development
Total EUR 766 million (616)
Review period order intake
by fuel in MW
Gas
62%
Oil
38%
Independent
power producers
Q1-Q2 Q3-Q4
64%26%
10%

17. © Wärtsilä PUBLIC 20 July 2017 Half year financial report 201717
ENERGY SOLUTIONS
329
100
110
Order intake 1-6/2017: 1,806 MW (1,886)
545
IPP’s
(Independent
Power Producers)
Utilities
Industrials
Order intake globally
75
23
8
534
Africa and Middle East 173 (299)
Asia 1,087 (368)
Americas 348 (299)
Europe 198 (920)
13
18
50

18. © Wärtsilä PUBLIC 20 July 2017 Half year financial report 201718
• Greensmith’s GEMS software platform
selected when a sudden loss in peaker plant
capacity in Pomona, California was replaced
with energy storage
• By leveraging major OEM relationships,
North America’s largest and most complex
energy storage system was delivered safely,
reliably in a record less than 4 months
• The storage solution delivers 80 MWh of
electricity during peak periods of energy
demand to power around 15,000 homes
for 4 hours each day
Energy storage steps in to
solve peaker plant crisis

19. © Wärtsilä PUBLIC 20 July 2017 Half year financial report 201719
Market for gas and liquid fuel power plants, <500 MW
ENERGY SOLUTIONS
Market shares are calculated on a 12 months rolling basis, numbers in brackets are from the end of the previous quarter.
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 last 12 months: 28.4 GW (26.1)
Total market volume last 12 months: 58.0 GW (64.8)
GE
31% (31)
Siemens
24% (22)
Wärtsilä
12% (13)
MHI
15% (20)
Other GT’s
4% (4)
Ansaldo
15% (10)

20. © Wärtsilä PUBLIC 20 July 2017 Half year financial report 201720
MARINE SOLUTIONS

21. © 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
01.17
03.17
05.17
MillionCGT
Numberofvessels
Merchant Offshore Cruise and Ferry Special vessels 3 months moving average in CGT
20 July 2017 Half year financial report 201721
Marine market environment remains challenging
MARINE SOLUTIONS
Source: Clarkson Research Services, figures exclude late contracting
* CGT= gross tonnage compensated with workload
*
*
06.17

22. © Wärtsilä PUBLIC 20 July 2017 Half year financial report 201722
Marine Solutions’ order intake supported by favourable vessel mix
MARINE SOLUTIONS
0
300
600
900
1 200
1 500
1 800
2013 2014 2015 2016 2017
Review period development
Total EUR 725 million (741)
Offshore
2%
Traditional
merchant
18%
Others
3%
Gas carriers
29%
Navy
9%
MEUR
Cruise
31%
Special vessels
6%
Ferry
3%
Q1-Q2 Q3-Q4

23. © Wärtsilä PUBLIC 20 July 2017 Half year financial report 201723
• The hybrid power module combines
engines, energy storage, and power
electronics
• Benefits include reduced fuel
consumption and emissions, as well as
improved vessel performance and safety
• Rimorchiatori Riuniti’s new harbour tug
will be the first vessel to feature the
Wärtsilä HY innovation
Wärtsilä’s unique
HY hybrid power module
increases efficiency and flexibility
Kuva
pitää
vaihtaa,
bonny
kalvon
kuva voisi
sopia
tähän

24. © Wärtsilä PUBLIC 20 July 2017 Half year financial report 201724
Market position of Wärtsilä’s marine engines
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
40% (45)
Others
17% (11)
MAN D&T
30% (27)
Caterpillar
13% (17)
Total market volume last 12 months:
3,065 MW (2,235)
Wärtsilä
8% (20)
Total market volume last 12 months:
1,680 MW (1,340)
Others
92% (80)

25. © Wärtsilä PUBLIC 20 July 2017 Half year financial report 201725
FINANCIALS

26. © Wärtsilä PUBLIC 20 July 2017 Half year financial report 201726
Cash flow from operating activities affected by increased receivables
FINANCIALS
0
100
200
300
400
500
600
700
2013 2014 2015 2016
MEUR
0
20
40
60
80
100
120
140
160
180
200
1-6/2016 1-6/2017
Review period development
MEUR

27. © Wärtsilä PUBLIC
313
251
543
490
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
2013 2014 2015 2016
20 July 2017 Half year financial report 201727
Working capital
FINANCIALS
MEUR
Working capital Total inventories Advances received Working capital / Net sales
602
680
12.1%*
13.8%*
0%
5%
10%
15%
20%
25%
0
200
400
600
800
1 000
1 200
1 400
1 600
30.6.2016 30.6.2017
Review period development
*Working capital / 12 months rolling net sales
MEUR

28. © Wärtsilä PUBLIC
0,00
0,10
0,20
0,30
0,40
0,50
2013 2014 2015 2016
20 July 2017 Half year financial report 201728
Gearing
FINANCIALS
Review period development
0,00
0,10
0,20
0,30
0,40
0,50
30.6.2016 30.6.2017

29. © Wärtsilä PUBLIC 20 July 2017 Half year financial report 201729
Wärtsilä's overall development 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
• Good in Energy Solutions
• Solid in Marine Solutions
(raised from soft)
Prospects for 2017
Setti 1
Setti 1

30. © Wärtsilä PUBLIC 20 July 2017 Half year financial report 201730
THANK YOU
Further information:
Natalia Valtasaari
Director, Investor & Media Relations
Tel. +358 (0) 10 709 5637
E-mail: natalia.valtasaari@wartsila.com