Wärtsilä Corporation Q2 2021 Result presentation

1. © Wärtsilä
WÄRTSILÄ CORPORATION
HALF YEAR REPORT
JANUARY – JUNE 2021
20 JULY 2021
HÅKAN AGNEVALL, PRESIDENT & CEO
ARJEN BERENDS, CFO
20 July 2021 HALF YEAR REPORT JANUARY-JUNE 2021
1

2. © Wärtsilä
STRONG CASH FLOW, BUT
BUSINESS STILL HAMPERED BY
COVID-19
2 20 July 2021 HALF YEAR REPORT JANUARY-JUNE 2021
• Order intake increased by 14%, growth in all businesses
• Good progress in services:
̶ Order intake increased by 24%
̶ Net sales increased by 16%
• Profitability improved despite lower net sales
• Strong cash flow from operating activities
• COVID-19 continued to have a significant impact on
Wärtsilä’s business

3. © Wärtsilä
GOOD DEVELOPMENT IN KEY FIGURES
3 20 July 2021 HALF YEAR REPORT JANUARY-JUNE 2021
MEUR 4–6/2021 4–6/2020 CHANGE 1–6/2021 1–6/2020 CHANGE
Order intake 1,154 1,011 14% 2,398 2,259 6%
of which services 604 486 24% 1,308 1,120 17%
Order book 5,238 5,401 -3%
of which current year deliveries 2,225 2,165 3%
Net sales 1,131 1,220 -7% 2,078 2,390 -13%
of which services 591 510 16% 1,141 1,103 3%
Book-to-bill 1.02 0.83 1.15 0.95
Operating result 58 49 18% 94 101 -7%
% of net sales 5.1 4.0 4.5 4.2
Comparable operating result 71 55 30% 112 111 1%
% of net sales 6.3 4.5 5.4 4.7

4. © Wärtsilä
113
55
71
11.1%
6.8%
6.4%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
0
50
100
150
200
250
Q219
Q319
Q419
Q120
Q220
Q320
Q420
Q121
Q221
Comparable operating result
1,217 1,220
1,131
0
1,000
2,000
3,000
4,000
5,000
6,000
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
Q219
Q319
Q419
Q120
Q220
Q320
Q420
Q121
Q221
Net sales
4 20 July 2021 HALF YEAR REPORT JANUARY-JUNE 2021
SECOND QUARTER
HIGHLIGHTS
Net sales EUR 1,131
million
• -7% due to lower
equipment deliveries
• Service net sales
increased by 16% on
the back of a weak
comparison period
Comparable operating
result EUR 71 million
• +30% despite lower
net sales
• More favourable
sales mix between
equipment and
services
MEUR, 12m rolling %, 12m rolling
MEUR MEUR
Net sales Comparable operating result
Net sales, 12m rolling MEUR 4,293 Comparable operating result, 12m rolling MEUR 276

5. © Wärtsilä
• The number of vessels ordered in the review
period increased to 829 (312 in the
corresponding period in 2020, excluding late
reporting of contracts).
• Activity in the cargo sector has continuously
improved from the lows seen in 2020, whereas
vessel contracting in the cruise and ferry
markets remains low.
• The fuelling transition is increasingly gaining
traction. There were 170 orders for alternative
fuel capable units in the first half of the year.
Total vessel contracting
MARINE MARKET RECOVERING
20 July 2021 HALF YEAR REPORT JANUARY-JUNE 2021
5
Number of vessels
UNEVEN PROGRESS ACROSS SEGMENTS – VESSEL CONTRACTING IN CRUISE AND FERRY MARKETS LOW
Specialised vessels
Source: Clarksons Research, contracting as per 7 July 2021 (+100 gt, excluding late reporting of contracts)
Specialised vessels include LNG carriers, LPG carriers, cruise & ferry, offshore, and special vessels.
200
400
600
800
1,000
1,200
12 months rolling (excluding late contracting)
0
100
200
300
400
500
12 months rolling (excluding late contracting)
Number of vessels

6. © Wärtsilä
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
Q218-Q119 Q418-Q319 Q219-Q120 Q419-Q320 Q220-Q121
• The COVID-19 pandemic and the resulting
weakening of the investment environment
continued to negatively impact the energy
market.
• Recovery will most likely take time in a large
part of our core markets.
• Activity in the energy storage markets has
continued at a good level.
• Wärtsilä’s market share decreased to 8%.
Market for gas and liquid fuel power plants <500 MW
RECOVERY EXPECTED TO TAKE TIME IN THE ENERGY MARKET
20 July 2021 HALF YEAR REPORT JANUARY-JUNE 2021
6
The total market, including also power plants with prime movers above 500 MW, declined by 13% to 40.5 GW during the twelve-
month period ending in March 2021 (46.4 at the end of December). The market data includes all Wärtsilä power plants and other
manufacturers’ gas and liquid fuelled gas turbine based power plants with prime movers below 500 MW, as well as the estimated
output of steam turbines for combined cycles. The data is gathered from the McCoy Power Report. The main gas turbine
competitors are GE, Siemens, Mitsubishi, and Ansaldo. Other combustion engines are not included.
MW, 12m rolling
GOOD ACTIVITY IN THE ENERGY STORAGE MARKET

7. © Wärtsilä
7 20 July 2021 HALF YEAR REPORT JANUARY-JUNE 2021
ORDER INTAKE
INCREASED BY 14%
• Order intake
increased across
businesses
• Equipment order
intake increased
by 4%
• Service order
intake increased
by 24%, reflecting
improved
economic activity
in general
754
526 549
0
500
1,000
1,500
2,000
2,500
3,000
3,500
0
100
200
300
400
500
600
700
800
900
1,000
Q219
Q319
Q419
Q120
Q220
Q320
Q420
Q121
Q221
Equipment order intake
MEUR MEUR
623
486
604
0
500
1,000
1,500
2,000
2,500
3,000
3,500
0
100
200
300
400
500
600
700
800
900
1,000
Q219
Q319
Q419
Q120
Q220
Q320
Q420
Q121
Q221
Service order intake
MEUR, 12m rolling MEUR, 12m rolling
Equipment Services
Equipment order intake, 12m rolling MEUR 2,043 Service order intake, 12m rolling MEUR 2,455

8. © Wärtsilä
0
500
1,000
1,500
2,000
2,500
3,000
Delivery current year Delivery next year Delivery after next year
30.6.2019* 30.6.2020 30.6.2021
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
30.6.2019* 31.12.2019 30.6.2020 31.12.2020 30.6.2021
Marine Power Marine Systems Voyage Energy Portfolio Business
Order book by business Order book delivery schedule
SLIGHT DECREASE IN ORDER BOOK DUE TO DIVESTMENTS
20 July 2021 HALF YEAR REPORT JANUARY-JUNE 2021
8
BOOK-TO-BILL IMPROVING
MEUR
* As published in the Interim report January-March 2020, order book figures for 2019 have been restated due to stricter requirements for booking new orders.
MEUR
Book-to-bill, 12m rolling 1.05

9. © Wärtsilä
9 20 July 2021 HALF YEAR REPORT JANUARY-JUNE 2021
NET SALES
DECREASED BY 7%
• Equipment net
sales decreased by
24%, mainly due to
fewer scrubber
deliveries and
delays in energy
equipment
deliveries
• Service net sales
increased by 16%
604
710
540
0
500
1,000
1,500
2,000
2,500
3,000
0
100
200
300
400
500
600
700
800
900
1,000
Q219
Q319
Q419
Q120
Q220
Q320
Q420
Q121
Q221
Equipment net sales
613
510
591
0
500
1,000
1,500
2,000
2,500
3,000
0
100
200
300
400
500
600
700
800
900
1,000
Q219
Q319
Q419
Q120
Q220
Q320
Q420
Q121
Q221
Service net sales
MEUR, 12m rolling MEUR, 12m rolling
MEUR MEUR
Equipment Services
Equipment net sales, 12m rolling MEUR 1,999 Service net sales, 12m rolling MEUR 2,293

10. © Wärtsilä
10
Testing hydrogen and ammonia
• An engine and plant concept for pure hydrogen ready by 2025
• An engine concept with pure ammonia ready in 2023
Autonomous, zero-emission barge with Port of
Rotterdam
• Collaborating to demonstrate a commercially viable autonomous
intra-port inter-terminal container shuttle
Power-to-Gas
• Pre-engineering and developing a Power-to-Gas plant that would
produce carbon-neutral, synthetic methane for Vantaa Energy
20 July 2021 HALF YEAR REPORT JANUARY-JUNE 2021
TECHNOLOGY AND PARTNERSHIP HIGHLIGHTS
ENABLING INDUSTRY DECARBONISATION

11. © Wärtsilä
© Wärtsilä 20 July 2021 HALF YEAR REPORT JANUARY-JUNE 2021
11

12. © Wärtsilä
+11%
SERVICE ORDERS INCREASED BY 30%
632
391
463
0
500
1,000
1,500
2,000
2,500
0
100
200
300
400
500
600
700
Q219 Q419 Q220 Q420 Q221
+18%
62
24
44
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
0
10
20
30
40
50
60
70
80
90
100
110
120
Q219 Q419 Q220 Q420 Q221
24
44
Q220 Q221
MARINE POWER: INCREASE IN ALL KEY FIGURES
20 July 2021 HALF YEAR REPORT JANUARY-JUNE 2021
12
Order intake Comparable operating result Comparable operating result
MEUR
12m rolling
MEUR 1,759 MEUR 12m rolling 9.1%
MEUR
447 420
466
0
500
1,000
1,500
2,000
2,500
0
100
200
300
400
500
600
700
Q219 Q419 Q220 Q420 Q221
Net sales
MEUR
+ Sales volumes
+ Equipment/service mix
+ Cost efficiency
actions
- Factory load
- Cost inflation
12m rolling
MEUR 1,763

13. © Wärtsilä
13
0
50
100
150
200
250
300
350
400
Second renewal of optimised maintenance
agreement with Rederi Ab Eckerö
• This latest 5-year agreement covers the main
and auxiliary engines in six vessels.
• The agreement will ensure the engines
operate safely and with optimal fuel efficiency,
while minimising downtime and unplanned
maintenance.
20 July 2021 HALF YEAR REPORT JANUARY-JUNE 2021
MARINE POWER SERVICE AGREEMENTS
MEUR, 12m rolling
NET SALES FROM INSTALLATIONS UNDER AGREEMENT STABILISED AFTER A COVID-19 RELATED DECLINE

14. © Wärtsilä
© Wärtsilä 20 July 2021 HALF YEAR REPORT JANUARY-JUNE 2021
14

15. © Wärtsilä
237 238
150
0
200
400
600
800
1,000
1,200
0
50
100
150
200
250
300
Q219 Q419 Q220 Q420 Q221
SERVICE ORDER INTAKE INCREASED BY 34%
198
119
183
0
200
400
600
800
1,000
1,200
0
50
100
150
200
250
300
Q219 Q419 Q220 Q420 Q221
+54%
23
27
13
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
0
10
20
30
40
50
60
Q219 Q419 Q220 Q420 Q221
27
13
Q220 Q221
+ Equipment/service mix
- Declining scrubber
volumes
- Cost inflation
MARINE SYSTEMS: STRONG ORDER INTAKE
20 July 2021 HALF YEAR REPORT JANUARY-JUNE 2021
15
Order intake Comparable operating result Comparable operating result
MEUR MEUR
MEUR
-37%
Net sales
MEUR
12m rolling
MEUR 643 12m rolling 9.3%
12m rolling
MEUR 627

16. © Wärtsilä
© Wärtsilä 20 July 2021 HALF YEAR REPORT JANUARY-JUNE 2021
16

17. © Wärtsilä
73
56
68
0
100
200
300
400
0
20
40
60
80
100
120
Q219 Q419 Q220 Q420 Q221
SERVICE ORDER INTAKE INCREASED BY 61%
72
56 60
0
100
200
300
400
0
20
40
60
80
100
120
Q219 Q419 Q220 Q420 Q221
+9%
-9
-12 -11
-30.0%
-25.0%
-20.0%
-15.0%
-10.0%
-5.0%
0.0%
-50
-40
-30
-20
-10
0
Q219 Q419 Q220 Q420 Q221
-12 -11
Q220 Q221
VOYAGE: HIGHER NET SALES
20 July 2021 HALF YEAR REPORT JANUARY-JUNE 2021
17
Order intake Comparable operating result Comparable operating result
MEUR MEUR
MEUR
+21%
Net sales
MEUR
+ Sales volumes
- Cost inflation
12m rolling
MEUR 245 12m rolling -16.4%
12m rolling
MEUR 250

18. © Wärtsilä
18
Wärtsilä and Tanger Med enabled the first
real-life digital port call
• The containership ‘Kobe Express’ docked
safely and on time at Tanger Med port in
Morocco using the Wärtsilä Navi-Port system
• Navi-Port is a digital platform that facilitates
the exchange of real-time data between ships
and their destination ports to allow accurate
arrival times, thereby saving fuel and costly
waiting time at anchor
20 July 2021 HALF YEAR REPORT JANUARY-JUNE 2021
VESSELS CONNECTED TO OUR CLOUD SOLUTIONS
INCREASED BY 78%
Connected,
cumulative
Order book
Number of connected vessels
Q2/21
Q2/19 Q4/19 Q1/20
Q3/19 Q2/20 Q3/20 Q4/20 Q1/21
+78%

19. © Wärtsilä
© Wärtsilä 20 July 2021 HALF YEAR REPORT JANUARY-JUNE 2021
19

20. © Wärtsilä
400
457
416
0
500
1,000
1,500
2,000
0
100
200
300
400
500
600
700
Q219 Q419 Q220 Q420 Q221
-9%
SERVICE ORDERS INCREASED BY 22%
435
390
433
0
500
1,000
1,500
2,000
0
100
200
300
400
500
600
700
Q219 Q419 Q220 Q420 Q221
+11%
38
19
24
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
-20
-10
0
10
20
30
40
50
60
70
80
90
100
110
120
Q219 Q419 Q220 Q420 Q221
19
24
Q220 Q221
ENERGY: ORDER INTAKE AND PROFITABILITY IMPROVED
20 July 2021 HALF YEAR REPORT JANUARY-JUNE 2021
20
Order intake Comparable operating result Comparable operating result
MEUR MEUR
MEUR
Net sales
MEUR
+ Equipment/service mix
- Sales volumes
- Factory load
- Cost inflation
12m rolling
MEUR 1,715 12m rolling 6.5%
12m rolling
MEUR 1,515

21. © Wärtsilä
21 20 July 2021 HALF YEAR REPORT JANUARY-JUNE 2021
Flexible thermal balancing power
gaining traction
• Wärtsilä received an order to supply equipment for a
156 MW multi-fuel balancing power plant to Omaha
Public Power District in Nebraska, the United
States. Wärtsilä’s technology will be used to balance
renewable power generation in the grid and ensure
system stability.
• Execution of a 380 MW project for Metaenergia in
Italy began in June. Wärtsilä will supply six power
plants operating on natural gas to provide flexible
system balancing, as Italy strives to incorporate
more renewable energy.

22. © Wärtsilä
22
0%
5%
10%
15%
20%
25%
30%
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
2016 2017 2018 2019 2020 30.6.2021
MW under agreement* % of Energy installed base
A long-term optimised maintenance
agreement signed for power plants in three
locations in Nigeria
• The plants covered by the five-year agreement
produce a combined total output of approx.
132 MW.
• The aim of the agreement is to ensure the
plants’ continued high levels of availability,
reliability and efficiency.
20 July 2021 HALF YEAR REPORT JANUARY-JUNE 2021
ENERGY SERVICE AGREEMENTS
MW
* Includes agreements covering both installed assets and assets to be installed in the future
INSTALLED BASE COVERED BY LONG-TERM SERVICE AGREEMENTS HAS BEEN STABLE DURING 2021

23. © Wärtsilä

24. © Wärtsilä
MEUR 4–6/2021 4-6/2020 1–6/2021 1–6/2020
Cash flow from operating activities 245 252 312 293
Working capital 73 492
Net interest-bearing debt 253 643
Gearing 0.12 0.31
Solvency, % 37.8 35.0
Basic earnings/share, EUR 0.06 0.04 0.10 0.09
24 HALF YEAR REPORT JANUARY-JUNE 2021
20 July 2021
OTHER KEY FINANCIALS – NET DEBT DECREASED

25. © Wärtsilä
-37
252 245
0
100
200
300
400
500
600
700
800
-100
-50
0
50
100
150
200
250
300
350
Q219 Q319 Q419 Q120 Q220 Q320 Q420 Q121 Q221
Cash flow from operating activities
Cash flow from operating activities, 12m rolling MEUR 700
Cash flow from operating activities Second quarter development
STRONG CASH FLOW FROM OPERATING ACTIVITIES
20 July 2021 HALF YEAR REPORT JANUARY-JUNE 2021
25
MEUR MEUR, 12m rolling MEUR
RECORD HIGH CASH FLOW IN THE FIRST HALF OF THE YEAR

26. © Wärtsilä
Wärtsilä expects the demand environment in
the third quarter to be better than that of the
corresponding period in the previous year.
However, the prevailing market conditions
make the outlook uncertain.

27. © Wärtsilä
SAVE THE DATE:
WÄRTSILÄ CAPITAL MARKETS DAY
18 NOVEMBER 2021
27 20 July 2021 HALF YEAR REPORT JANUARY-JUNE 2021

28. © Wärtsilä

29. © Wärtsilä
52%
48%
Services
Equipment
40%
16%
5%
38%
1%
Marine Power
Marine Systems
Voyage
Energy
Portfolio Business
ORDER INTAKE
29
Order intake
by business
Order intake
by business type
(5)
(5)
(39)
(12)
(52)
(48)
(39)
HALF YEAR REPORT JANUARY-JUNE 2021
20 July 2021
SECOND QUARTER DEVELOPMENT

30. © Wärtsilä
52%
48%
Services
Equipment
41%
13%
6%
37%
3%
Marine Power
Marine Systems
Voyage
Energy
Portfolio Business
NET SALES
30
Net sales
by business
Net sales
by business type
(4)
(5)
(37)
(20)
(58)
(42)
(34)
HALF YEAR REPORT JANUARY-JUNE 2021
20 July 2021
SECOND QUARTER DEVELOPMENT

31. © Wärtsilä
26%
14%
7%
8%
45%
Spare parts
Field service
Service agreements
Service projects
Equipment
18%
6%
16%
7%
53%
Order intake Net sales
SECOND QUARTER DEVELOPMENT BY BUSINESS TYPE
20 July 2021 HALF YEAR REPORT JANUARY-JUNE 2021
31
(48)
(4)
(18)
(28)
(2)
(57)
(20)
(5)
(18)
(0)
Marine
Businesses
EUR 706 million
(566)
Energy
EUR 433 million
(390)
26%
14%
7%
8%
45%
Spare parts
Field service
Service agreements
Service projects
Equipment
18%
5%
19%
5%
53%
(56)
(4)
(13)
(23)
(4)
(60)
(14)
(5)
(17)
(4)
Marine
Businesses
EUR 684 million
(715)
Energy
EUR 416 million
(457)

32. © Wärtsilä
32
Marine Businesses Gas carriers Cruise & ferry Offshore Navy
Special
vessels Merchant Other
Marine Power
Equipment 7% (6) 38% (32) 6% (7) 15% (11) 22% (24) 11% (19) 0% (0)
Services 20% (16) 19% (13) 14% (16) 7% (12) 14% (15) 25% (25) 1% (3)
Marine Systems
Equipment 71% (42) 8% (3) 0% (3) 3% (5) 1% (1) 16% (45) 0% (1)
Services 3% (5) 8% (9) 6% (6) 30% (35) 7% (7) 42% (38) 4% (0)
Voyage
Equipment 1% (1) 32% (32) 7% (6) 4% (3) 17% (18) 18% (20) 21% (21)
Services 4% (3) 22% (35) 6% (8) 2% (3) 7% (5) 56% (45) 3% (1)
20 July 2021 HALF YEAR REPORT JANUARY-JUNE 2021
JANUARY–JUNE ORDER INTAKE BY CUSTOMER SEGMENT
Energy Utilities
Independent Power
Producers Industrials Other
Equipment 31% (30) 57% (59) 12% (11) 0% (0)
Services 33% (33) 26% (24) 30% (30) 11% (14)

33. © Wärtsilä
ORDERS RECEIVED FOR ENERGY EQUIPMENT GLOBALLY
IPP’s
(Independent
Power Producers)
Utilities
Industrials
ORDER INTAKE 1-6/2021:
MEUR 461 (486)
Others
33
Americas
332 (380)
Africa and
Middle East
40 (29)
Europe
46 (11)
Asia
42 (65)
HALF YEAR REPORT JANUARY-JUNE 2021
20 July 2021