Wärtsilä Corporation's Result presentation Q1 2018

1. © Wärtsilä PUBLIC
WÄRTSILÄ CORPORATION
INTERIM REPORT JANUARY-MARCH 2018
24 April 2018
Jaakko Eskola, President & CEO
24 April 2018 Q1 Result presentation1

2. © Wärtsilä PUBLIC 24 April 2018 Q1 Result presentation2
ORDER INTAKE AND NET SALES DEVELOPED WELL IN THE EQUIPMENT BUSINESSES

3. © Wärtsilä PUBLIC 24 April 2018 Q1 Result presentation3
Highlights Q1/2018
• Order intake EUR 1,507 million, +7%
• Net sales EUR 1,066 million, +6%
• Book-to-bill 1.41 (1.41)
• Comparable operating result EUR 88 million (82),
which represents 8.3% of net sales (8.1)
• Earnings per share EUR 0.10 (0.09)
• Cash flow from operating activities EUR -42 million (2)
• Order book at the end of the period EUR 5,490 million (5,114)
Comparison figures have been restated due to the adoption of IFRS 15.

4. © Wärtsilä PUBLIC 24 April 2018 Q1 Result presentation4
0
200
400
600
800
1 000
1 200
1 400
1 600
1 800
Q1/2017 Q1/2018
First 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-Q4
7%
2%
1,413
1,507
31%
0%
Energy
Solutions
Marine
Solutions
Services
Good development in order intake
Comparison figures for 2017 have been restated due to the internal reorganisation of service activities.

5. © Wärtsilä PUBLIC 24 April 2018 Q1 Result presentation5
Net sales favoured equipment deliveries
0
200
400
600
800
1 000
1 200
Q1/2017 Q1/2018
1,005
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
6%
0%
13%
12%
First quarter development
Energy
Solutions
Marine
Solutions
Services
MEUR
Q1
MEUR
1,066
Q2-Q4
Comparison figures for 2017 have been restated due to the internal reorganisation of service activities and the adoption of IFRS 15.

6. © Wärtsilä PUBLIC 24 April 2018 Q1 Result presentation6
Net sales by business 1-3/2018
Marine Solutions
25% (23)
Energy Solutions
25% (24)
Services
50% (53)
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
1.41
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 1-3/2018
24 April 2018 Q1 Result presentation7
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 24 April 2018 Q1 Result presentation8
Order book distribution
0
500
1 000
1 500
2 000
2 500
3 000
3 500
31.3.2017 31.3.2018
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 24 April 2018 Q1 Result presentation9
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
8.1% 8.3%
0%
2%
4%
6%
8%
10%
12%
14%
0
20
40
60
80
100
120
Q1/2017 Q1/2018
First quarter development
MEUR
Operating result
Comparison figures for 2017 have been restated due to the adoption of IFRS 15.

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SERVICES

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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
24 April 2018 Q1 Result presentation11
Services’ net sales development stable
SERVICES
MEUR
Q1 Q2-Q4
0
100
200
300
400
500
600
Q1/2017 Q1/2018
MEUR
534
0%
535
First quarter development
Comparison figures for 2017 have been restated due to the internal reorganisation of service activities and the adoption of IFRS 15.

12. © Wärtsilä PUBLIC 24 April 2018 Q1 Result presentation12
Net sales distribution 1-3/2018
SERVICES
Total EUR 535 million (534)
By product area By segment
Spare parts
49% (54)
Field service
21% (22)
Projects
7% (8)
Agreements
23% (16)
Merchant
22% (25)
Power plants
34% (34)
Cruise & ferry
21% (18)
Navy
8% (9)
Special vessels
8% (7)
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)

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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 Q1/2018
MW
24 April 2018 Q1 Result presentation13
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 24 April 2018 Q1 Result presentation14
• The order scope consists of the design,
model testing, manufacturing and installation
of two 330 MW upgraded, reversible pump-
turbine runners and motor-generator rotors
• Modernising the facility enhances plant
efficiency and ensures reliable energy supply
when demand is needed the most
American Hydro is contracted to
increase the efficiency of Brookfield’s
Bear Swamp Pumped Storage
Generating Station

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ENERGY SOLUTIONS

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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
24 April 2018 Q1 Result presentation16
Quotation activity by fuel type
ENERGY SOLUTIONS
Liquid fuel
Multi-fuel
Gas
Calculated on a 12 months rolling basis
MW

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Energy Solutions’ order intake on a healthy level
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
First quarter development
Total EUR 414 million (405)
First quarter order intake
by fuel in MW
Gas
52%
Oil
48%
Q1
Independent
power producers
67%
33%
Q2-Q4

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ENERGY SOLUTIONS
135
132
Order intake 1-3/2018: 828 MW (832)
226
IPP’s
(Independent
Power Producers)
Utilities
Industrials
Order intake globally
60
215
Africa and Middle East 132 (51)
Asia 441 (457)
Americas 186 (126)
Europe 70 (198)
10
51

19. © Wärtsilä PUBLIC 24 April 2018 Q1 Result presentation19
• A new 211 MW power plant will enable
AGL Energy Limited to respond to
fluctuations that are inherent to
renewable generation
• The benefits of Wärtsilä’s smart power
generation solution include high
efficiency, fast response and flexible
capacity
• The value of the EPC delivery
is over €100 million
Improving the reliability and
security of the South Australian
power system

20. © Wärtsilä PUBLIC 24 April 2018 Q1 Result presentation20
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: 20.1 GW (25.2)
Total market volume: 46.8 GW (54.9)
GE
30%
Siemens
24%
Wärtsilä
19%
MHI
10%
Other GT’s
1%
Ansaldo
16%

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MARINE SOLUTIONS

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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
07.17
09.17
11.17
01.18
03.18
MillionCGT
Numberofvessels
Merchant Offshore Cruise and Ferry Special vessels 3 months moving average in CGT
24 April 2018 Q1 Result presentation22
Solid activity in the marine markets
MARINE SOLUTIONS
Source: Clarkson Research Services, figures exclude late contracting
* CGT= gross tonnage compensated with workload
*
*

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Strong growth in Marine Solutions’ order intake
MARINE SOLUTIONS
0
300
600
900
1 200
1 500
1 800
2014 2015 2016 2017 2018
First quarter development
Total EUR 357 million (273)
Offshore
2% (2)
Traditional
merchant
43% (17)
Gas carriers
5% (39)
Navy
6% (7)
MEUR
Q1
Cruise
38% (23)
Special vessels
5% (7)
Q2-Q4
Ferry
2% (3)
Comparison figures for 2017 have been restated due to the internal reorganisation of service activities.

24. © Wärtsilä PUBLIC 24 April 2018 Q1 Result presentation24
• Transas is a global market leader in
marine navigation solutions, professional
training and simulation services, and ship
traffic control
• The acquisition plays a key role in the
development of smart products and a
digital platform
• The transaction is valued at
MEUR 210 (enterprise value) and
is expected to be closed during
the second quarter of 2018
Wärtsilä acquires Transas to
accelerate its Smart Marine vision
Kuva
pitää
vaihtaa,
bonny
kalvon
kuva voisi
sopia
tähän

25. © Wärtsilä PUBLIC25
Market position of Wärtsilä Marine Solutions
MARINE SOLUTIONS
GAS CARRIERS
Challenger
• Auxiliary engines
• Main engines (FSRU)
• Gas systems
TRADITIONAL
MERCHANT
Challenger
• Auxiliary engines
• Propulsion
• Environmental
solutions
CRUISE & FERRY
Top player
• Main engines
• Navigaton &
automation
• Propulsion
• Environmental
solutions
NAVY
Top player
• Auxiliary engines
• Propulsion
• Navigation &
Automation
OFFSHORE
Mid-player
• Main engines
• Propulsion
• Ship design
SPECIAL
VESSELS
Mid-player
• Main engines
• Propulsion
• Automation &
Navigation
• Environmental
• Gas systems
• Auxiliary engines
• Main engines (FSRU)
• Auxiliary engines
• Propulsion
• Navigation &
automation
(containerships)
• Environmental
solutions
• Main engines
• Navigation &
automation
• Propulsion
• Environmental
solutions
• Auxiliary engines
• Propulsion
• Navigation &
Automation
• Main engines
• Propulsion
• Ship design
• Main engines
• Propulsion
• Navigation &
automation
• Environmental
solutions
Main offering
24 April 2018 Q1 Result presentation

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FINANCIALS

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Cash flow from operating activities
FINANCIALS
0
100
200
300
400
500
600
700
2014 2015 2016 2017
MEUR
-50
-40
-30
-20
-10
0
10
20
30
40
50
Q1/2017 Q1/2018
Review period development
MEUR

28. © 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
24 April 2018 Q1 Result presentation28
Working capital
FINANCIALS
MEUR
Working capital Total inventories Advances received Working capital / Net sales
561
726
11.6%*
14.6%*
0%
5%
10%
15%
20%
25%
0
200
400
600
800
1 000
1 200
1 400
1 600
31.3.2017 31.3.2018
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

29. © Wärtsilä PUBLIC
0,00
0,10
0,20
0,30
0,40
0,50
2014 2015 2016 2017
24 April 2018 Q1 Result presentation29
Gearing
FINANCIALS
Review period development
0,00
0,10
0,20
0,30
0,40
0,50
31.3.2017 31.3.2018

30. © Wärtsilä PUBLIC 24 April 2018 Q1 Result presentation30
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
• Solid in Marine Solutions
Prospects for 2018 unchanged
Setti 1
Setti 1

31. © Wärtsilä PUBLIC 24 April 2018 Q1 Result presentation31
THANK YOU
Further information:
Natalia Valtasaari
Director, Investor & Media Relations
Tel. +358 (0) 10 709 5637
E-mail: natalia.valtasaari@wartsila.com