Wärtsilä reported financial results for the first quarter of 2014. Order intake declined 16% to EUR 1,142 million due to challenging power plant markets. Net sales increased 15% to EUR 1,012 million, in line with expectations. EBIT was EUR 90 million, representing an 8.9% margin. The company expects full year 2014 net sales growth of 0-10% and operational profitability of around 11%.

1. © Wärtsilä
WÄRTSILÄ CORPORATION
INTERIM REPORT JANUARY-MARCH 2014
24 APRIL 2014
Björn Rosengren,
President & CEO

2. • Order intake EUR 1,142 million, -16%
• Net sales EUR 1,012 million, +15%
• Book-to-bill 1.13
• EBIT EUR 90 million, 8.9% of net sales
(EUR 70 million or 8.0%)
• EPS EUR 0.31 (0.37)
• Cash flow from operating activities
EUR 111 million (84)
• Efficiency program proceeding
according to plan
EBIT is shown excluding non-recurring items.
Highlights Q1/2014
NEW
PIC

3. © Wärtsilä
0
200
400
600
800
1000
1200
1400
Q1/2013 Q1/2014
-16%
-59%
5%
1%
1,352
MEUR
First quarter development
MEUR
3
Order intake affected by challenging power plant markets
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
5500
2010 2011 2012 2013 1-3/2014
1,142
Q1 Q2-Q4
Power Plants
Ship Power
Services

4. © Wärtsilä
0
200
400
600
800
1000
1200
Q1/2013 Q1/2014
Net sales in line with our expectations
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
2010 2011 2012 2013 1-3/2014
-7.6% 12%
15%
0%
54%
-6%
882
MEUR
First quarter development
MEUR
1,012
4
Net sales increased by 15%
Power Plants
Ship Power
Services
Q1 Q2-Q4
-1%

5. © Wärtsilä
Net sales by business 1-3/2012
Ship Power
38% (28)
Power Plants
19% (23)
Services
43% (49)
5
Net sales by business 1-3/2014

6. © Wärtsilä
0.88
1.07 1.05 1.05
1.13
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 1-3/2014
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
31.03.2013 31.03.2014
Delivery current year Delivery next year or later

8. © Wärtsilä
8.0%
8.9%
0%
2%
4%
6%
8%
10%
0
20
40
60
80
100
Q1/2013 Q1/2014
10.7%
11.1% 10.9%
11.2%
0%
2%
4%
6%
8%
10%
12%
14%
0
100
200
300
400
500
600
2010 2011 2012 2013
MEUR
First quarter development
MEUR
8
Profitability in line with expectations
EBIT% before non-recurring items
EBIT before non-recurring items

9. © Wärtsilä9
Continued uncertainty
in the power
generation markets

10. Power Plants quotation activity remains on a good level
10 © Wärtsilä
The share of natural gas is consistently increasing.
0
2000
4000
6000
8000
10000
12000
14000
16000
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
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
MW
Quoted MW per Fuel Type
Others
Natural gas
Heavy fuel oil

11. © Wärtsilä
0
200
400
600
800
1000
1200
1400
1600
1800
2000
2010 2011 2012 2013 1-3/2014
MEUR
Review period development
Total EUR 165 million (406)
IPP’s*
Utilities
Industrials
Oil
41% Gas
59%
Review period order intake by fuel in MW
x%
11
Power Plants order intake by customer segment
25%
24%
51%
Q1 Q2-Q4
*IPP = Independent Power Producer

12. © Wärtsilä
Order intake 1-3/2014: 396 MW (760)
Power Plants global order intake
Africa and Middle East the most active region
Europe
91 (72)
Africa and
Middle East
202 (314)
Asia
37 (50)
Americas
67 (324)
12

13. © Wärtsilä
Siemens
GE
MHI
Wärtsilä
Alstom
13
19.8%
2013
48.2%
22.1%
2.9%
Total market 73.2 GW (75.4)
3.3%
2.6%
Other GTs
Ansaldo
13
Market for gas and liquid based power plants
Includes all Wärtsilä power plants and other manufacturers’ gas and liquid fuelled 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.
1.1%

14. © Wärtsilä14
Marine market
activity on a
healthy level

15. © Wärtsilä15
Good activity in vessel contracting
Source: Clarkson Research Services
* 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
MillionCGT
#ofvessels
Merchant Offshore Cruise and Ferry Special vessels 3 months moving average in CGT

16. © Wärtsilä
0
300
600
900
1200
1500
1800
2010 2011 2012 2013 1-3/2014
MEUR
Review period development
Total EUR 467 million (443)
Offshore
33%
Merchant
62%
Special
vessels
4%
16
Ship Power order intake by segment
Others
2%
Q1 Q2-Q4

17. © Wärtsilä
• Order received for Wärtsilä’s 2-stroke, dual-fuel
engine and gas valve unit
• The vessel will be built in China for the Chinese
ship owner and operator Zhejiang Huaxiang
Shipping Co. Ltd.
• Benefits of low-pressure, dual-fuel technology for
two stroke engines include:
– Reduced capital expenditure and gains in
operating expenditure
– Compliance with IMO Tier III emission
regulations without exhaust gas cleaning
systems when operating in gas mode
17
Wärtsilä’s 2-stroke, dual-fuel engine chosen to power a
new LNG carrier
NEW
PIC

18. © Wärtsilä
• Joint venture order intake totalled
EUR 25 million (25) during
January-March 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
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
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

19. © 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
51%(52)
Others
20%(19)
MAN D&T
23%(25)
Caterpillar
6%(4)
MAN D&T
90%(88)
Wärtsilä
9%(10)
Mitsubishi
1%(2)
Low-speed main engines
Total market volume last 12 months:
31,017 MW (22,935)
Total market volume last 12 months:
3,787 MW (4,137)
Medium-speed main engines
Wärtsilä
3%(4)
Auxiliary engines
Total market volume last 12 months:
6,895 MW (5,966)
Others
97%(96)
19
Ship Power market
Market position of Wärtsilä’s marine engines

20. © Wärtsilä20
Steady demand
in marine and
power plant
service markets

21. © Wärtsilä
0
200
400
600
800
1000
1200
1400
1600
1800
2000
2010 2011 2012 2013 1-3/2014
-3%
0
100
200
300
400
500
600
Q1/2013 Q1/2014
MEUR
First quarter development
MEUR
434
0%
435
0%
21
Services net sales development stable
5%
Q1 Q2-Q4

22. © Wärtsilä
Spare parts
53%(50)
Field service
24%(27)
Contracts
17%(16)
Projects
6%(6)
22
Total EUR 435 million (434)
Services net sales distribution 1-3/2014

23. © Wärtsilä
• Order for the technical design and installation of
a new fixed pitch propeller for an FPSO
conversion project
• The vessel is operated by Woodside Energy Ltd,
an independent Australian oil and gas company
• Fast-track project execution a key customer
requirement
• The major benefit of the new propeller is
increased vessel speed
23
Australian FPSO optimises propeller design
NEW
PIC

24. © Wärtsilä
O&M and maintenance agreements Power Plants deliveries % of delivered MWs
MW
24
Development of Power Plants service agreements
57% 58% 57%
51% 49%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
0
500
1000
1500
2000
2500
3000
3500
4000
2010 2011 2012 2013 Q1/2014
12m rolling

25. © Wärtsilä
Fleet utilisation
* Source Bloomberg. Sample of more than 25 000 vessels (>299 GT) covered by IHS AIS Live.
** Source Bloomberg
25
Fleet utilisation
Fleet Average Speed, knots**
Anchored Vessels & Fleet Development*
20500
21000
21500
22000
22500
15%
20%
25%
30%
35%
09.11
12.11
03.12
06.12
09.12
12.12
03.13
06.13
09.13
12.13
03.14
NrofActiveVessels
PercentAnchored
Anchored Active Fleet
8,0
8,5
9,0
9,5
10,0
10,5
09.11
12.11
03.12
06.12
09.12
12.12
03.13
06.13
09.13
12.13
03.14

26. © Wärtsilä26
Strong financial
position

27. © Wärtsilä27
MEUR
Favourable development in operating cash flow
0
25
50
75
100
125
150
Q1/2013 Q1/2014
First quarter development
MEUR
0
100
200
300
400
500
600
700
2010 2011 2012 2013

28. © Wärtsilä
Working capital Total inventories Advances received Working capital / Net sales
MEUR
28
Focus on working capital development
118
235
465
313 292
2.6%
5.6%
9.8%
6.7%
6.1%
0%
5%
10%
15%
20%
25%
0
200
400
600
800
1000
1200
1400
1600
1800
2000
2010 2011 2012 2013 31.3.2014

29. © Wärtsilä
Solvency Gearing
29
Financial position
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
2010 2011 2012 2013 31.3.2014 -0,10
0,00
0,10
0,20
0,30
0,40
0,50
2010 2011 2012 2013 31.3.2014

30. © Wärtsilä
• Power Plants: Although customers are still
delaying their decision-making, the forecasted
GDP growth in 2014 is expected to result in a
slightly improved overall market for liquid and gas
fuelled power generation. Ordering activity
remains focused on the emerging markets.
• Ship Power: The main drivers supporting activity
in the shipping and offshore sectors are in place.
Overall contracting is expected to be in line with
that seen in 2013, keeping in mind the prevailing
overcapacity and the market’s limited capacity to
absorb new tonnage.
• Services: The overall service market outlook
remains stable.
30
Market outlook
NEW
PIC

31. © Wärtsilä31
Wärtsilä expects its net sales
for 2014 to grow by 0-10% and
its operational profitability
(EBIT% before non-recurring
items) to be around 11%.
Prospects for 2014 unchanged

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