Result presentation Q4 and full year 2014

1. © Wärtsilä
WÄRTSILÄ CORPORATION
RESULT PRESENTATION 2014
29 JANUARY 2015
Björn Rosengren,
President & CEO

2. • Order intake EUR 5,084 million, +5%
• Net sales EUR 4,779 million, +4%
• Book-to-bill 1.06 (1.05)
• EBIT EUR 569 million, 11.9% of net sales
(EUR 557 million or 12.1%)
• EPS EUR 1.76 (1.98)
• DPS proposal EUR 1.15
• Acquisition of L-3 Marine Systems International
announced in December 2014
• Joint venture for 2-stroke engine business
finalised in January 2015
EBIT is shown excluding non-recurring items.
As of the third quarter of 2014, the two-stroke business is reported as discontinued
operations. Income statement related comparison figures for 2013 have been restated.
Highlights 2014 – good performance in challenging markets
2 © Wärtsilä

3. © Wärtsilä
0
200
400
600
800
1000
1200
1400
1600
Q4/2013 Q4/2014
14%
23%
23%
-2%
1,334
MEUR
Fourth quarter developmentMEUR
3
Order intake growth supported by Ship Power & Services
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
5500
2010 2011 2012 2013 2014
1,522
Q1-Q3 Q4
Power Plants
Ship Power
Services

4. © Wärtsilä
0
200
400
600
800
1000
1200
1400
1600
Q4/2013 Q4/2014
Net sales in line with our expectations
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
2010 2011 2012 2013 2014
10%
11%
30%
-8%
1,403
MEUR
Fourth quarter developmentMEUR
1,549
4
Net sales in line with expectations
Power Plants
Ship Power
Services
Q1-Q3 Q4

5. © Wärtsilä
Net sales by business 1-3/2012
Ship Power
36% (28)
Power Plants
24% (32)
Services
41% (40)
5
Net sales by business 2014

6. © Wärtsilä
0.88
1.07 1.05 1.05
1.06
0,0
0,2
0,4
0,6
0,8
1,0
1,2
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
5500
2010 2011 2012 2013 2014
Order intake Net sales Book-to-bill
MEUR
6
Book-to-bill ratio remains above one

7. © Wärtsilä
Order book distribution
MEUR
7
Order book distribution
0
500
1000
1500
2000
2500
3000
3500
31.12.2013 31.12.2014
Delivery next year Delivery after next year

8. © Wärtsilä
MEUR
8
Profitability at upper end of guidance range
EBIT% before non-recurring itemsEBIT before non-recurring items
10.7%
11.1% 10.9%
11.2%
11.9%
0%
2%
4%
6%
8%
10%
12%
14%
0
100
200
300
400
500
600
2010 2011 2012 2013 2014
2014 EBIT and EBIT% include continuing operations. Figures for 2010-2013 include both discontinued and continuing operations.

9. © Wärtsilä9
Power plant market
activity improved in the
second half

10. © Wärtsilä10
Power Plants quotations strong in 2014
0
2000
4000
6000
8000
10000
12000
14000
16000
18000 Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
MW
Quoted MW per Fuel Type
Others
Natural gas
Heavy fuel oil
70% of quotations for gas based installations

11. © Wärtsilä
0
200
400
600
800
1000
1200
1400
1600
1800
2010 2011 2012 2013 2014
MEUR
Review period development
Total EUR 1,293 million (1,292)
IPP’s*
Utilities
Industrials
Oil
39%
Gas
61%
Review period order intake by fuel in MW
x%
11
Power Plants order intake stable despite challenges
33%
32%
35%
Q1-Q3 Q4
*IPP = Independent Power Producer

12. © Wärtsilä
308
38
217
124
171130
Order intake 2014: 2,489 MW (2,401)
Americas 686 (418)
Asia 394 (1,083)
Africa and Middle East 639 (581)
Utilities
IPP’s
Industrials
12
Power Plants orders well distributed globally
423
339
53
Europe 769 (320)
340
72
274

13. © Wärtsilä
• Order placed by EUROCEMENT group
• Scope of supply: 36 natural gas-fired Wärtsilä
34SG engines with a combined capacity of
314 MW
• The plants will produce electricity for cement
factories and work in parallel with the grid
• Wärtsilä’s total installed power generation
capacity in Russia is approximately 1,000 MW
13
Orders for 11 industrial power plants from Russia

14. © Wärtsilä1414
12.7%
55.2%
14.5%
1.8%
Market <500MW
16.5 GW (27)
10.5%
3.6%
14
Market data includes all Wärtsilä power plants and other manufacturers’ gas and liquid fuelled 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.
1.8%
Total market
37.7 GW (38)
GE Siemens MHI WärtsiläAlstom Ansaldo Other GTs
26.3%
48.0%
9.8%
5.0%
9.0%
1.6%
0.8%
Market for gas and liquid fuel based power plants 1-9/2014

15. © Wärtsilä15
Ship Power order
intake supported by
activity in gas carriers
and cruise vessels

16. © Wärtsilä16
Slowdown in vessel contracting
Source: Clarkson Research Services, figures exclude late contracting
* CGT= gross tonnage compensated with workload
*
*
0
1
2
3
4
5
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
11.12
01.13
03.13
05.13
07.13
09.13
11.13
01.14
03.14
05.14
07.14
09.14
11.14
MillionCGT
#ofvessels
Merchant Offshore Cruise and Ferry Special vessels 3 months moving average in CGT

17. © Wärtsilä
0
300
600
900
1200
1500
1800
2010 2011 2012 2013 2014
MEUR
Review period development
Total EUR 1,746 million (1,644)
Offshore
28%
Traditional
merchant
10%
Special
vessels
6%
17
6% growth in Ship Power order intake
Others
2%
Q1-Q3 Q4
Gas carriers
34%
Cruise &
Ferry
16%
Navy
4%

18. © Wärtsilä
• Joint venture order intake totalled
EUR 306 million (222) during
January-December 2014
• In November Wärtsilä Hyundai
Engine Company Ltd. received a
major order to supply 54 dual-fuel
engines for arctic LNG carriers for
the Yamal project in Russia
MEUR
Ship Power order intake
Joint venture order intake, includes figures from Wärtsilä Hyundai
Engine Company Ltd. and Wärtsilä Qiyao Diesel Company Ltd.
18
Joint venture ordering activity
0
50
100
150
200
250
300
350
400
450
500
550
600
650
700
Q1/2010
Q2/2010
Q3/2010
Q4/2010
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
Wärtsilä’s share of ownership in these companies is 50%, and the results are reported as a share of result of associates
and joint ventures

19. © Wärtsilä
• Order received for 6 integrated solutions to
Anchor Handling Tug Supply vessels, being
built for Maersk Supply Service A/S
• Scope of supply: complete power generation
solution, electrical distribution and drives,
vessel automation and propulsion
• The fully integrated systems will provide
optimal power, efficiency, versatility and
redundancy, with the lowest operating
expenditures and a minimal environmental
impact
19
Orders for integrated solutions increasing

20. © Wärtsilä
Ship Power order book 31 December 2014
Offshore
35%
Special
vessels
4%
Navy
8%
Cruise & Ferry
12%
Gas carriers
24%
Non-vessel
4%
Tankers
4%
RoRo
4%
Other merchant
2%
Cargo
1%
20

21. © Wärtsilä
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
52%(51)
Others
5%(21)
MAN D&T
25%(17)
Caterpillar
17%(11)
Total market volume last 12 months:
4,484 MW (4,554)
Medium-speed main engines
Wärtsilä
3%(2)
Auxiliary engines
Total market volume last 12 months:
6,682 MW (7,628)
Others
97%(98)
21
Strong position in marine engine market

22. © Wärtsilä22
Wärtsilä strengthens its position in automation and
electrical systems
• L-3 MSI is a global supplier of automation,
navigation and electrical systems to the
marine, naval and offshore markets
• Transaction value EUR 285 million (enterprise
value), subject to customary adjustments
• Financing for the deal will be from existing cash
resources and credit facilities
• The acquisition is subject to clearance from the
regulatory authorities, and is expected to be
closed during the second quarter of 2015
• The acquisition is expected to be EPS accretive
as of 2015

23. © Wärtsilä23
Growth in service
demand

24. © Wärtsilä
0
200
400
600
800
1000
1200
1400
1600
1800
2000
2010 2011 2012 2013 2014
-3%
0
100
200
300
400
500
600
Q4/2013 Q4/2014
MEUR
Fourth quarter development
MEUR
507
11%
564
0%
24
All-time high fourth quarter supported Services sales
growth
5%
Q1-Q3 Q4
5%

25. © Wärtsilä
Spare parts
51%(49)
Field service
25%(26)
Contracts
16%(16)
Projects
9%(8)
25
Total EUR 1,939 million (1,842)
Services net sales distribution 2014

26. © Wärtsilä26
Services distribution per business 2014
Net sales
Total EUR 1,939 million
Ship
Power
Installed base
Total 181,000 MW
Power
Plants
Power
Plants
Ship Power
2-stroke
Ship Power
4-stroke

27. © Wärtsilä
• Service contracts bring flexibility to
operations through optimised
maintenance planning
• Several agreements signed during 2014
in various vessel segments, including:
– 10-year maintenance and technical support
agreement with Royal Caribbean Cruises
Ltd covering 36 vessels
– 3-year service agreement with Dutch
dredging and marine contractor Van Oord
– 5-year technical maintenance agreement
with three Greek LNG carrier owners for a
total of 15 vessels
– 6-year maintenance agreement for 15 of
Wagenborg’s dry cargo carriers
27
Growing interest in marine service agreements

28. © Wärtsilä28
Development of service agreements
MW
0%
5%
10%
15%
20%
25%
30%
0
2000
4000
6000
8000
10000
12000
14000
2009 2010 2011 2012 2013 2014
MW under agreement – Power Plants MW under agreement – Ship Power
% of Ship Power installed base% of Power Plants installed base

29. © Wärtsilä
Fleet utilisation
* Source Bloomberg. Sample of more than 25 000 vessels (>299 GT) covered by IHS AIS Live.
** Source Bloomberg
29
Fleet utilisation
Fleet Average Speed, knots**
Anchored Vessels & Fleet Development*
8,0
8,5
9,0
9,5
10,0
10,5
07.12
10.12
01.13
04.13
07.13
10.13
01.14
04.14
07.14
10.14
01.15
20500
21000
21500
22000
22500
23000
15%
20%
25%
30%
35%
07.12
10.12
01.13
04.13
07.13
10.13
01.14
04.14
07.14
10.14
01.15
NrofActiveVessels
PercentAnchored
Anchored Active Fleet

30. © Wärtsilä30
Solid financial
standing

31. © Wärtsilä31
Cash flow from operating activities
0
100
200
300
400
500
600
700
2010 2011 2012 2013 2014
MEUR

32. © Wärtsilä
118
235
465
313
251
2.6%
5.6%
9.8%
6.8%
5.2%
0%
5%
10%
15%
20%
25%
0
200
400
600
800
1000
1200
1400
1600
2010 2011 2012 2013 2014
Working capital Total inventories Advances received Working capital / Net sales
MEUR
32
Working capital developed well

33. © Wärtsilä33
Gearing remains low
-0,10
0,00
0,10
0,20
0,30
0,40
0,50
2010 2011 2012 2013 2014

34. © Wärtsilä34
0,00
0,50
1,00
1,50
2,00
2,50
EPS Dividend Extra dividend
EUR
2010 2011 2012
*Dividend 2014 - Proposal of the Board
2013 2014*
EPS and dividend per share
1.76
1.15

35. © Wärtsilä
• Power Plants: The overall market for liquid and gas fuelled
power generation is expected to continue to be challenging.
Ordering activity remains focused on emerging markets and
countries benefiting from a stronger US dollar.
• Ship Power: The outlook for shipping and shipbuilding is
cautious, due to the current uncertainties in the market. Low oil
prices are expected to limit the demand for offshore vessels.
The outlook for gas carriers continues to be positive. The
importance of fuel efficiency and environmental regulations are
clearly visible, driving interest in environmental solutions and
gas as a marine fuel for the broader marine markets.
• Services: The overall service market outlook remains stable.
The service outlook for offshore and gas fuelled vessels remains
favourable. Demand for services in the power plant segment
continues to be good. Marine and power plant customers show
healthy interest in long-term service agreements.
35
Market outlook

36. © Wärtsilä36
Wärtsilä expects its net sales for
2015 to grow by 0-10% and its
operational profitability (EBIT%
before non-recurring items) to be
between 12.0-12.5%.
Prospects for 2015

37. IR Contact:
Natalia Valtasaari
Director, Investor Relations
Tel. +358 (0) 40 187 7809
E-mail: natalia.valtasaari@wartsila.com