WÄRTSILÄ CORPORATION JP MORGAN CAZENOVE EUROPEAN CAPITAL GOODS CEO CONFERENCE

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1 WÄRTSILÄ CORPORATION JP MORGAN CAZENOVE EUROPEAN CAPITAL GOODS CEO CONFERENCE Jaakko Eskola President & CEO 1 Wärtsilä PUBLIC 16 June 2017 Jaakko Eskola

2 Wärtsilä s net sales by business Q1/2017 SERVICES, 49% ENERGY SOLUTIONS, 24% MARINE SOLUTIONS, 28% 2

3 Net sales and profitability MEUR % ,9 % 11,2 % 11,9 % 12,2 % 12,1 % 12% 10% 1200 First quarter development 14% % 6% 4% 2% % 8.5% 12% 10% 8% 6% 4% 2% % 0 Q1/2016 Q1/2017 0% Net sales Comparable operating result, % of net sales Figures for include both discontinued and continuing operations. 3 Wärtsilä PUBLIC 16 June 2017 Jaakko Eskola

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5 SERVICES We are where our customers need us to be 11,000 service professionals in 70 countries, 160 locations Marine installed base by operating country Power installed base by operating country Service locations 5

6 SERVICES Services net sales development MEUR First quarter development EUR 490 million (500) Special vessels 7% (7) Offshore 7% (9) Navy 9% (9) Power plants 37% (35) Q1 Q2-Q4 Merchant 24% (26) Cruise & ferry 16% (14) 6 Wärtsilä PUBLIC 16 June 2017 Jaakko Eskola

7 SERVICES Strategic focus areas CUSTOMER FIRST GO DIGITAL ASSET & LIFECYCLE NEW CUSTOMER MANAGEMENT ACCESS Growth in existing business by improving customer loyalty Growth through optimising customer performance Growth through value-adding lifecycle services & projects Growth beyond the traditional Wärtsilä installed base 7

Wärtsilä and Carnival Corporation announce strategic partnership 12-year agreement Ensuring safety and reliability of Carnival s fleet Reducing operational costs Wärtsilä provides all engine

8 Wärtsilä and Carnival Corporation announce strategic partnership 12-year agreement Ensuring safety and reliability of Carnival s fleet Reducing operational costs Wärtsilä provides all engine maintenance and monitoring for fleet of 79 vessels Continuous planning together with Carnival Performance-based revenue model Wärtsilä s biggest service contract in history Digitising fleet operations 8

electrification and improving standard of living Ageing installed capacity driving investments in new

9 ENERGY SOLUTIONS Market trends & drivers Growth in sustainable energy, reducing carbon emissions Rapid growth of intermittent renewable generation and escalating demand fluctuation Economic growth, electrification and improving standard of living Ageing installed capacity driving investments in new technologies Natural gas replacing other fossil fuels Storage systems needed in order to support renewable intermittent energies 9

10 ENERGY SOLUTIONS MEUR Strong ordering activity in Energy Solutions First quarter development Total EUR 405 million (312) 19% 8% 73% Utilities Independent power producers Industrials First quarter order intake by fuel in MW Oil 24% Gas 76% Q1 Q2-Q4 10

11 ENERGY SOLUTIONS LNG INFRASTRUCTURE CAPTURING GROWTH THROUGH GLOBAL ENERGY SYSTEMS INTEGRATION ENGINE POWER PLANTS Wärtsilä PUBLIC ENERGY STORAGE INTEGRATION SOLAR PV AND ENGINE-SOLAR HYBRID POWER PLANTS

The acquisition of Greensmith will enable Wärtsilä to become a global systems integrator A US-based leader in intelligent energy storage technology and solutions Specialised in energy storage

12 The acquisition of Greensmith will enable Wärtsilä to become a global systems integrator A US-based leader in intelligent energy storage technology and solutions Specialised in energy storage optimization and integration software Through the acquisition Wärtsilä expands its footprint in the energy storage market with solutions that combine and optimise different forms of power generation, energy storage and demand side management 12

13 MARINE SOLUTIONS THE MOST COMPLETE MARINE OFFERING ON EARTH 13

MARINE SOLUTIONS Market trends & drivers Urbanisation, globalisation and population growth support seaborne trade development Technological developments and new

14 MARINE SOLUTIONS Market trends & drivers Urbanisation, globalisation and population growth support seaborne trade development Technological developments and new breakthroughs create a need for new business models Increasing consumption and growing middle class population support demand for cruise sector Gas remains an important fuel 14

15 MARINE SOLUTIONS Marine market environment continues to be soft Merchant Offshore Cruise and Ferry Special vessels 3 months moving average in CGT* 5,0 4,5 4,0 3,5 Number of vessels ,0 2,5 2,0 1,5 * Million CGT 50 1,0 0,5 0 0, Source: Clarkson Research Services, figures exclude late contracting * CGT= gross tonnage compensated with workload 15 Wärtsilä PUBLIC 16 June 2017 Jaakko Eskola

16 MARINE SOLUTIONS Marine Solutions order intake satisfactory MEUR First quarter development Total EUR 322 million (379) Offshore 3% Special vessels 6% Gas carriers 33% Cruise 23% 300 Ferry 4% Q1 Q2-Q4 Traditional merchant 19% Others 4% Navy 8% 16

portfolio enabling big data analytics and a full-blown automation, navigation and control system offering Wärtsilä s

17 MARINE SOLUTIONS Opportunities through our broad product portfolio and connectivity WÄRTSILÄ KNOWS GAS PORTFOLIO PROVIDES ROBUST SUPPORT FOR DIGITALISATION MARINE HYBRID SOLUTIONS Wärtsilä is involved in the whole gas value chain Data generation across the portfolio enabling big data analytics and a full-blown automation, navigation and control system offering Wärtsilä s battery/hybrid systems include energy management control, power electronics and battery integrations 17 Wärtsilä PUBLIC 16 June 2017 Jaakko Eskola

Demand by business area is anticipated to develop as follows: Solid in Services with

18 Prospects for 2017 Setti 1 Setti 1 The overall demand for Wärtsilä s services and solutions in 2017 is expected to be relatively unchanged from the previous year. Demand by business area is anticipated to develop as follows: Solid in Services with growth opportunities Good in Energy Solutions (upgraded from solid) Soft in Marine Solutions 18

markets Enhanced performance through continuous improvement Unleveraged balance sheet supports growth

19 OUR LONG-TERM FINANCIAL TARGETS Grow faster than global GDP Reach 14% profitability Maintain gearing below 50% Dividend 50% of EPS over the cycle Focus on strengthening our position in strategic growth markets Enhanced performance through continuous improvement Unleveraged balance sheet supports growth through acquisitions Committed to providing solid shareholder returns 19 Wärtsilä PUBLIC 16 June 2017 Jaakko Eskola

20 THANK YOU IR Contact: Natalia Valtasaari Director, Investor & Media Relations Tel (0) Wärtsilä PUBLIC 16 June 2017 Jaakko Eskola

WÄRTSILÄ CORPORATION HANDELSBANKEN NORDIC LARGE CAP SEMINAR

WÄRTSILÄ CORPORATION HANDELSBANKEN NORDIC LARGE CAP SEMINAR Jaakko Eskola President & CEO 1 Wärtsilä PUBLIC 2 September 217 Jaakko Eskola Wärtsilä s net sales by business 1-6/217 SERVICES, 45% ENERGY SOLUTIONS,