Wärtsilä's Result presentation Q2 2018

1. © Wärtsilä PUBLIC
WÄRTSILÄ CORPORATION
HALF YEAR FINANCIAL REPORT 2018
19 July 2018
Jaakko Eskola, President & CEO
19 July 2018 Half year financial report 20181

2. © Wärtsilä PUBLIC 19 July 2018 Half year financial report 20182
GOOD DEVELOPMENT IN ORDERS RECEIVED

3. © Wärtsilä PUBLIC 19 July 2018 Half year financial report 20183
Highlights Q2/2018
• Order intake EUR 1,553 million, 14%
• Net sales EUR 1,246 million, -3%
• Book-to-bill 1.25 (1.06)
• Comparable operating result EUR 123 million (122),
which represents 9.8% of net sales (9.5)
• Earnings per share EUR 0.13 (0.12)
• Cash flow from operating activities EUR 41 million (2)
• Order book at the end of the period EUR 5,904 million (5,089)
Comparison figures have been restated due to the adoption of IFRS 15.

4. © Wärtsilä PUBLIC 19 July 2018 Half year financial report 20184
0
200
400
600
800
1 000
1 200
1 400
1 600
1 800
Q2/2017 Q2/2018
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
6 000
2014 2015 2016 2017 2018
MEUR
MEUR
Q1-Q2 Q3-Q4
14%
0%
1,363
1,553
13%
22%
Energy
Solutions
Marine
Solutions
Services
Positive momentum in ordering activity
Comparison figures for 2017 have been restated due to the internal reorganisation of service activities.

5. © Wärtsilä PUBLIC 19 July 2018 Half year financial report 20185
Net sales stable in the first half
0
200
400
600
800
1 000
1 200
1 400
Q2/2017 Q2/2018
1,290
0
500
1 000
1 500
2 000
2 500
3 000
3 500
4 000
4 500
5 000
5 500
2014 2015 2016 2017 2018
-3%
-2%
4%
-11%
Second quarter development
Energy
Solutions
Marine
Solutions
Services
MEUR
MEUR
1,246
Comparison figures for 2017 have been restated due to the internal reorganisation of service activities and the adoption of IFRS 15.
Q1-Q2 Q3-Q4

6. © Wärtsilä PUBLIC 19 July 2018 Half year financial report 20186
Net sales by business 1-6/2018
Marine Solutions
24% (23)
Energy Solutions
27% (28)
Services
48% (49)
Comparison figures for 2017 have been restated due to the internal reorganisation of service activities and the adoption of IFRS 15.

7. © Wärtsilä PUBLIC
1.06
0.98
1.03
1.15
1.32
0,0
0,2
0,4
0,6
0,8
1,0
1,2
1,4
1,6
0
500
1 000
1 500
2 000
2 500
3 000
3 500
4 000
4 500
5 000
5 500
6 000
2014 2015 2016 2017 1-6/2018
19 July 2018 Half year financial report 20187
Book-to-bill
MEUR
Order intake Net sales Book-to-bill
Comparison figures for 2017 have been restated due to the adoption of IFRS 15.

8. © Wärtsilä PUBLIC 19 July 2018 Half year financial report 20188
Order book distribution
0
500
1 000
1 500
2 000
2 500
3 000
3 500
4 000
30.6.2017 30.6.2018
Delivery current year Delivery next year or later
MEUR
Comparison figures for 2017 have been restated due to the adoption of IFRS 15.

9. © Wärtsilä PUBLIC 19 July 2018 Half year financial report 20189
11.9%
12.2% 12.1%
11.7%
0%
2%
4%
6%
8%
10%
12%
14%
0
100
200
300
400
500
600
700
2014 2015 2016 2017
MEUR
Comparable operating result % of net sales
8.9% 9.1%
0%
2%
4%
6%
8%
10%
12%
14%
0
20
40
60
80
100
120
140
160
180
200
220
1-6/2017 1-6/2018
Review period development
MEUR
Operating result
Comparison figures for 2017 have been restated due to the adoption of IFRS 15.

10. © Wärtsilä PUBLIC 19 July 2018 Half year financial report 201810
SERVICES

11. © Wärtsilä PUBLIC
0
200
400
600
800
1 000
1 200
1 400
1 600
1 800
2 000
2 200
2 400
2 600
2014 2015 2016 2017 2018
19 July 2018 Half year financial report 201811
Services’ sales on last year’s level
SERVICES
MEUR
0
100
200
300
400
500
600
700
800
Q2/2017 Q2/2018
MEUR
594
-2%
582
Second quarter development
Comparison figures for 2017 have been restated due to the internal reorganisation of service activities and the adoption of IFRS 15.
Q1-Q2 Q3-Q4

12. © Wärtsilä PUBLIC 19 July 2018 Half year financial report 201812
Net sales distribution 1-6/2018
SERVICES
Total EUR 1,117 million (1,127)
By product area By segment
Spare parts
48% (50)
Field service
22% (24)
Projects
8% (10)
Agreements
22% (17)
Merchant
23% (24)
Power plants
33% (34)
Cruise & ferry
20% (18)
Navy
7% (8)
Special vessels
8% (6)
Offshore
4% (4)
Comparison figures for 2017 have been restated due to the internal reorganisation of service activities and the adoption of IFRS 15.
Oil&Gas
4% (4)
Others
2% (2)

13. © 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
18 000
20 000
2009 2010 2011 2012 2013 2014 2015 2016 2017 1-6/2018
MW
19 July 2018 Half year financial report 201813
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

14. © Wärtsilä PUBLIC 19 July 2018 Half year financial report 201814
• Agreement to optimise the maintenance
of all Wärtsilä thrusters installed within
the Transocean fleet.
• Benefits include extended service
intervals and reduced dry-docking costs.
• The performance-based agreement
builds on the Wärtsilä Propulsion
Condition Monitoring Service,
that collects performance data
from the thrusters.
Wärtsilä strengthens cooperation
with Transocean

15. © Wärtsilä PUBLIC 19 July 2018 Half year financial report 201815
ENERGY SOLUTIONS

16. © Wärtsilä PUBLIC 19 July 2018 Half year financial report 201816
Quotation activity by fuel type
ENERGY SOLUTIONS
Liquid fuel
Multi-fuel
Gas
Calculated on a 12 months rolling basis
MW
0
10 000
20 000
30 000
40 000
50 000
60 000
Q1/2015
Q2/2015
Q3/2015
Q4/2015
Q1/2016
Q2/2016
Q3/2016
Q4/2016
Q1/2017
Q2/2017
Q3/2017
Q4/2017
Q1/2018
Q2/2018

17. © Wärtsilä PUBLIC 19 July 2018 Half year financial report 201817
Energy Solutions’ order intake stable
ENERGY SOLUTIONS
0
200
400
600
800
1 000
1 200
1 400
1 600
1 800
2014 2015 2016 2017 2018
MEUR
Utilities
Industrials
Review period development
Total EUR 773 million (766)
Review period order intake
by fuel in MW
Gas
56%
Oil
41%
Independent
power producers
46%53%
Q1-Q2 Q3-Q4
1%
Renewables
3%

18. © Wärtsilä PUBLIC 19 July 2018 Half year financial report 201818
ENERGY SOLUTIONS
246
60
Order intake 1-6/2018: 1,636 MW (1,815)
661
IPP’s
(Independent
Power Producers)
Utilities
Industrials
Highest activity in Asia
221
225
Africa and Middle East 212 (173)
Asia 896 (1,096)
Americas 297 (348)
Europe 231 (198)
10
51
21
132
10

19. © Wärtsilä PUBLIC 19 July 2018 Half year financial report 201819
• The 145 MW power plant will operate on
eight Wärtsilä 50SG gas-fuelled engines.
• The plant is scheduled to be operational
during the first quarter of 2019.
• Wärtsilä’s ability to meet the
demanding delivery requirements,
and the flexibility of its engines, were
key in the award of the contract.
Wärtsilä’s power plant will alleviate
electricity shortage in Myanmar
Copyright: Jayesh Devani

20. © Wärtsilä PUBLIC 19 July 2018 Half year financial report 201820
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 period.
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: 18.1 GW (20.1)
Total market volume: 49.8 GW (46.8)
GE
30%
Siemens
25%
Wärtsilä
21%
MHI
14%
Other GT’s
1%Ansaldo
9%

21. © Wärtsilä PUBLIC 19 July 2018 Half year financial report 201821
MARINE SOLUTIONS

22. © 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
1/2009
4/2009
7/2009
10/2009
1/2010
4/2010
7/2010
10/2010
1/2011
4/2011
7/2011
10/2011
1/2012
4/2012
7/2012
10/2012
1/2013
4/2013
7/2013
10/2013
1/2014
4/2014
7/2014
10/2014
1/2015
4/2015
7/2015
10/2015
1/2016
4/2016
7/2016
10/2016
1/2017
4/2017
7/2017
10/2017
1/2018
4/2018
MillionCGT
Numberofvessels
Merchant Offshore Cruise and Ferry Special vessels 3 months moving average in CGT
19 July 2018 Half year financial report 201822
Gradual recovery in vessel contracting
MARINE SOLUTIONS
Source: Clarkson Research Services, figures exclude late contracting
* CGT= gross tonnage compensated with workload
*
*
6/2018

23. © Wärtsilä PUBLIC 19 July 2018 Half year financial report 201823
Marine Solutions’ order intake supported by broad product offering
MARINE SOLUTIONS
0
300
600
900
1 200
1 500
1 800
2014 2015 2016 2017 2018
Review period development
Total EUR 766 million (634)
Offshore
7% (2)
Traditional
merchant
40% (15)
Gas carriers
14% (34)
Navy
4% (8)
MEUR
Cruise
25% (31)
Special vessels
3% (6)
Ferry
4% (2)
Comparison figures for 2017 have been restated due to the internal reorganisation of service activities.
Q1-Q2 Q3-Q4
Other
4% (1)

24. © Wärtsilä PUBLIC 19 July 2018 Half year financial report 201824
• The approaching global sulphur cap
is resulting in high demand for
scrubber solutions
• Activity increasing in both newbuild and
retrofit markets
• EUR 170 million order for hybrid exhaust
gas cleaning equipment and retrofit
service received from a major European
container shipping company
Improving the environmental impact
of shipping
Kuva
pitää
vaihtaa,
bonny
kalvon
kuva voisi
sopia
tähän

25. © Wärtsilä PUBLIC 19 July 2018 Half year financial report 201825
FINANCIALS

26. © Wärtsilä PUBLIC 19 July 2018 Half year financial report 201826
Cash flow from operating activities
FINANCIALS
0
100
200
300
400
500
600
700
2014 2015 2016 2017
MEUR
-10
0
10
20
30
40
50
1-6/2017 1-6/2018
Review period development
MEUR

27. © Wärtsilä PUBLIC
313
251
543
490
563
6.8%
5.2%
10.8%
10.2%
11.5%
0%
5%
10%
15%
20%
25%
0
200
400
600
800
1 000
1 200
1 400
1 600
2013 2014 2015 2016 2017
19 July 2018 Half year financial report 201827
Working capital
FINANCIALS
MEUR
Working capital Total inventories Advances received Working capital / Net sales
658
790
13.3%*
16.0%*
0%
5%
10%
15%
20%
25%
0
200
400
600
800
1 000
1 200
1 400
1 600
30.6.2017 30.6.2018
Review period development
*Working capital / 12 months rolling net sales
Comparison figures for 2017 have been restated due to the adoption of IFRS 15.
MEUR

28. © Wärtsilä PUBLIC
0,00
0,10
0,20
0,30
0,40
0,50
2014 2015 2016 2017
19 July 2018 Half year financial report 201828
Gearing
FINANCIALS
Review period development
0,00
0,10
0,20
0,30
0,40
0,50
30.6.2017 30.6.2018

29. © Wärtsilä PUBLIC 19 July 2018 Half year financial report 201829
The demand for Wärtsilä’s services and
solutions in 2018 is expected to improve
somewhat from the previous year.
Demand by business area is anticipated
to be as follows:
• Good in Services
• Good in Energy Solutions
• Good in Marine Solutions
(raised from solid)
Prospects for 2018
Setti 1
Setti 1

30. © Wärtsilä PUBLIC 19 July 2018 Half year financial report 201830
THANK YOU
Further information:
Natalia Valtasaari
Director, Investor & Media Relations
Tel. +358 (0) 10 709 5637
E-mail: natalia.valtasaari@wartsila.com