ABG SUNDAL COLLIER SPOTLIGHT ON FINLAND

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VESA RIIHIMÄKIGROUP VICE PRESIDENT, POWER PLANTS13 SEPTEMBER 2012

ABG SUNDAL COLLIER SPOTLIGHT ON FINLAND

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This is Wärtsilä

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SERVICES

POWER PLANTS

SHIP POWER

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5%

5%

9%4%

3%

9%

5%

5%

3%3%

ChinaTurkey

Norway

USADominicanRepublic

Brazil

Bangladesh

Singapore

South Korea

The Netherlands

Global net sales - top 10 countries

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Emerging markets

54%

Developedmarkets

46%

Strong presence in emerging markets

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Profitability

11.4%12.1%

10.7% 11.1%

10.3%

11.9%12.8%

11.0%11.5% 11.2%

0%

2%

4%

6%

8%

10%

12%

14%

16%

0

50

100

150

200

250

2008 2009 2010 2011 2012

EBIT% target:10-14%

MEUR

Q2Q1 Q3 Q4

EBIT% before non-recurring itemsEBITA% before non-recurring items and intangible asset amortisation related to acquisitions

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We provide superior value to our customers with our flexible, efficient and environmentally advanced energy solutions,

which enable a transition to a more sustainable and modern energy infrastructure.

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Target markets and solutions

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Flexible base-load powergeneration

Grid stabilityand peaking

Industrialself-generation

Solutions for oil and gasindustry

Liquid biofuel power plants

Flexible grid stability power plants

Oil, dual-fuel and gas fired power plants

Combined heat & power plants (CHP)

Pumping and compressionapplications

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Order intake by application

0

200

400

600

800

1000

1200

1400

1600

1800

2000

2008 2009 2010 2011 1-6/2012

MEUR Review period developmentTotal EUR 591 million (672)

Industrial self-generation

Flexible baseload

Oil 39% Gas

61%

Review period order intake by fuel in MW

67%

16%9%

8

9%

Oil & gas

Grid stability & peaking

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Global order intake

Order intake 1-6/2012: 1,401 MW (1,487)

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229110

58

Americas 425 (199)

Europe 19 (550) Asia 771 (298)

Africa and Middle East 186 (440)

19 59

602

110

59

127

Flexible baseloadIndustrial self-generation Grid stability & peakingOil & gas

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Market for gas and liquid based power plants

Market data includes all prime mover units over 5 MW and estimated output of steam turbines for combined cycles. The data is gathered from the McCoy Power Report. In engine technology, Wärtsilä has a leading position. * Other combustion engines figures based partly on Wärtsilä’s own estimate.

GE

Siemens

MHI

Wärtsilä

Alstom

Russian

10

3.3%

2011

29.3%

34.6%

4.3%

8.8%

14.4%

Total market 100.8 GW

3.3%

2.0%

Other combustion engines*

Other gas turbines

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Market trends and drivers

• GDP growth, electrification and increasing standard of living drive the growth of electricity demand

• Demand for sustainability and focus on climate change • Rapid growth of intermittent renewable generation• Increasing daily, weekly and seasonal demand fluctuation

increase the need for flexibility• Changing roles of fuels

– New coal power plants difficult to permit in the western countries

– Increasing role of gas, especially as a balancing fuel– The future of nuclear is uncertain

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The world needs affordable, clean, flexible and reliable power.

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Smart Power Generation optimises energy systems

In emerging markets, economic growth requires increasing investments in energy.

In developed countries, the transition to solar and wind power brings daily variations that need to be balanced.

Efficient and flexible Smart Power Generation enables power systems to deliver affordable, clean and reliable energy.

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Affordable

Reliable Sustainable

SmartPower

System

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Operational flexibility AND electrical efficiency

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FUTURE POWER PLANTS:

• Efficiency• Starting &

stopping times• Ramp rate• Part load

operation• Firm capacity

Flexibility

40%

50%

Medium High

Wärtsilä

OCGTAero

OCGTIndustrial

Coal

Nuclear30%

LowCombustion Engine Plants

Gas Turbine PlantsOpen Cycle (OC)Combined Cycle (CC)

Steam Power PlantsNuclear Power Plants

CCGT WärtsiläFlexicycle™

Electrical efficiency

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Benefits to power producers

• Operation in different generation modes• High efficiency• Fuel flexibility• Dependable and committable

– Multiple generating units• Operate on multiple markets

– Energy markets– Capacity markets – Ancillary services markets

• Optimum plant location close to consumers• Fast access to income through

fast-track project delivery• Competitive O&M costs

FuelFlexibility

OperationalFlexibility

EnergyEfficiency

Smart Power

Generation

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• Secures the supply of affordable and sustainable power– Enable highest penetration of wind and solar

power capacity– Maximising the use of wind power capacity by

minimising wind curtailment – Ensure system stability in wind variability and

contingency situations

• Ensures true optimisation of the total power system operation– Remove the abusive starts and stops, and

cyclic load from baseload plants that are not designed for it

– Improves the total system efficiency

Reliable Sustainable

Affordable

Smart Power

System

Benefits to power systems

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We are passionate about optimising lifecycle value by offering what our customers need. We deliver on this promise because we provide the only true total offering of marine products, integrated solutions and services in

the industry – worldwide. We help our customers find the shorter route to robust growth and bigger

profits by focusing on operational efficiency, environmental excellence, fuel flexibility and services.

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The only complete marine offering

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Power drivesPower

distribution

Communicationand control

Automation

Propulsion

Seals &bearings

Engines

Serviceagreements

Ship Design

Flow & GasSolutions

Environmental Solutions

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Vessel order development

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Source: Clarkson Research Services* CGT= gross tonnage compensated with workload

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0

1

2

3

4

0

20

40

60

80

100

120

14001

.09

02.0

903

.09

04.0

905

.09

06.0

907

.09

08.0

909

.09

10.0

911

.09

12.0

901

.10

02.1

003

.10

04.1

005

.10

06.1

007

.10

08.1

009

.10

10.1

011

.10

12.1

001

.11

02.1

103

.11

04.1

105

.11

06.1

107

.11

08.1

109

.11

10.1

111

.11

12.1

101

.12

02.1

203

.12

04.1

205

.12

06.1

2

Mill

ion

CG

T*

# of

ves

sels

Merchant Offshore Cruise and Ferry Special vessels 3 months moving average in CGT *

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Order intake increased by 51%

0

400

800

1200

1600

2000

2008 2009 2010 2011 1-6/2012

MEUR

Review period developmentTotal EUR 723 million (479)

Offshore43%

Merchant32%

Special vessels

7%

Other2%

Cruise & ferry

4%

Navy12%

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Key trends and drivers

• High oil prices represent a risk for global economic growth; however, they also stimulate investments in exploration and production for oil and gas

• Expansion of emerging economies continues to support growth of demand for transportation of raw materials and energy

• Ship owner base is shifting to Asia• Environmental regulations drive demand for

environmental solutions and gas as a marine fuel

• Increasing focus on energy efficiency and environmental performance

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The development of environmental solutions and gas technology will be our priority in meeting the evolving needs of our customers.

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Preventing the unexpected and optimising our customers operations is our shared passion. We serve you whenever, wherever.

We provide the broadest portfolio and best services in the industry for both shipping and power generation. We offer expertise, proximity and

responsiveness for all customers regardless of their equipment make in the most environmentally sound way.

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70 countries, 160 locations, 5000 field service experts

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Wärtsilä Services global networkWidest range of offering and expertise

Installedbase

180,000 MW

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Wide range of expertise

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Engine services Propulsion services Electrical & automation services Boiler services

Environmental services Service agreements Service projects Training services

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Net sales by quarter

0

100

200

300

400

500

600

2005 2006 2007 2008 2009 2010 2011 2012

Q1 Q2 Q3 Q4

MEUR

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Net sales distribution 1-6/2012

Spare parts 53%(54)

Field service 24%(23)

Contracts 14%(15)

Projects9%(8)

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Total EUR 942 million (890)

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Current key market drivers

• Growth of gas as a fuel in power generation and in shipping

• Stricter environmental regulations• Increased focus on total cost of

ownership • Accelerating technological

development• High demand for expertise

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Market outlook

• Power Plants: The power generation market is expected to remain active in 2012.

• Ship Power: Full year vessel contracting expected to be somewhat lower than in 2011. Robust contracting activity is expected for the offshore, gas carrier, and other specialised vessel markets.

• Services: The merchant marine segments are still expected to be under pressure, as overcapacity in the market continues to impact the potential for services in this area. The power plant service market is expected to develop steadily.

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Prospects for 2012 reiterated

Wärtsilä expects its net sales for 2012 to grow by 5-10% and its operational profitability (EBIT% before non-recurring items) to be 10-11%.

IR Contact:Pauliina TenniläDirector, Investor Relations Tel. +358 (0) 40 570 5530E-mail: [email protected]