Wartsila Oyj Abp · OMXHEX:WRT1V

Wartsila Oyj Abp — Wärtsilä — Investor Day (March 2012)

17 slides from Wartsila Oyj Abp's investor day presentation, Mar 29, 2012

1. Slide 1: Technology with Excellence

   TECHNOLOGY WITH EXCELLENCE LARS HELLBERG Group Vice President, Industrial Operations 1 © Wärtsilä 29 March 2012 LARS HELLBERG

2. Slide 2: Our product portfolio 2012

   Our product portfolio 2012 4-stroke 2-stroke Gensets & Propellers Steerable Transverse Flue gas Energy engines engines Auxpacs FPP/CPP thrusters thrusters desulphurisation efficiency & scrubbers systems* Frequency Propulsion Automation, I/O I/Ocabinets cabinets Switchboards Gears Fuel cells Catalyst

3. Slide 3: Four themes in the WIO strategy

   Four themes in the WIO strategy We provide market leading products Leading Operational technology & FlexAgility* excellence products (QDC) Valued people in a performance culture *) FlexAgility = Flexibility + Agility Flexibility = Ability to deal with known and predictable variations (singular syste

4. Slide 4: Leading technology & products

   Leading technology & products Technology & product development Innovation with a focus on future market needs, know-how leadership Product Fundamental Technology Product management research development development (Modification and Market improvement) Supplier integration Competitive portfolio A str

5. Slide 5: Continued focus on R&D

   Continued focus on R&D Differentiators WÄRTSILÄ R&D EXPENSES Reliability % of net sales • High quality and reliability 4.5 Performance 4.0 • Environmental compliance 3.5 • Superior efficiency • Gas focus 3.0 • Multi-fuel capability and fuel flexibility 2.5 • Superior loading capability 2.0 Design 1.

6. Slide 6: Keeping the lead in engine products

   Keeping the lead in engine products 4-stroke portfolio program Current portfolio products New portfolio products Future upgrades/new products W20 locomotive Small bore W20 0.5-4.8 MW 0.6-5.4 MW W26 Time horizon for product planning Medium extended to 20 years bore W32/W34/W38 WXX 3.5-12 MW 2.6-11.6

7. Slide 7: New technology – improving efficiency

   New technology – improving efficiency Medium Voltage Power Drive § Power electronics for marine electric propulsion (fast growing market with increasing power) § Supports new and increased power concepts in the 10–25 MW range § Enables energy savings § Specific market segments: LNG, cruise and o

8. Slide 8: Increasing attention on IPR

   Increasing attention on IPR • Increased attention on Intellectual Property Rights (IPR) and Intellectual Asset Management (IAM) • Owning > 2,000 patents and patent applications*) • Filing annually over 500 new national applications Wärtsilä invention disclosures Priority patent applications filed [i

9. Slide 9: FlexAgility: Adjusting operations over time

   FlexAgility: Adjusting operations over time • Market • Clear • Market upturn market downturn upturn • Start of Wärtsilä Engineering • Establish JVs • Expansion Centre China WCEC & into Asia WTEC (WECC) • WQDC • Oil & water treatment in • WIO new Gothenburg operating model with • CPP factory • Wärtsi

10. Slide 10: Flexibility in capacity is essential

    Flexibility in capacity is essential 4-stroke MW delivered by Wärtsilä (incl. JVs) Capacity flexibility 9000 3000 MW 8000 7000 6000 5000 4000 3000 2000 1000 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 E2012 Flexibility is obtained from people, outsourcing, supply chain optimisation and streamlini

11. Slide 11: Manufacturing footprint: Ability to deliver in all markets

    Manufacturing footprint: Ability to deliver in all markets DCN (Rubbestadneset, Norway) Propulsion DCN (Stord, Norway) DCV (Vaasa, Finland) Automation 4-stroke engines QMD (Qingdao, China) 2-stroke engines WTEC (Penza, Russia ) WSE (Gothenburg, Sweden) 4-stroke engines WHEC (Mokpo, Oily water treatm

12. Slide 12: Joint ventures create value and profitability

    Joint ventures create value and profitability DRIVERS OF JOINT VENTURES WIO manufacturing locations (development over time; existing scope only) Local 16 market JV initiatives 1 access 14 JV BRICK Own BRICK 12 Own Europe 6 6 10 Brazil 4 4 4 4 8 3 Access 2 2 technology Capture 6 2 2 2 2 2 WCME WQDC W

13. Slide 13: Less costs – more efficiency

    Less costs – more efficiency Manufacturing Manufacturing Manufacturing capacity cost employees inventory [indexed 2009 = 100] [FTEs] [indexed 2009 = 100] 120 4500 120 Asia 4000 100 Europe 100 3500 80 3000 80 2500 60 60 2000 40 1500 40 1000 20 20 500 0 0 0 2009 2010 2011 E2012 2009 2010 2011 E2012 20

14. Slide 14: Operational excellence: lean examples

    Operational excellence: lean examples • KPIs & 12 cockpits deployed • SP/WIO joint Value Stream Management project • Toshulin machine change over time reduction 2hr à 30mins • SC21 fast track & bronze award (WIO & Services) • Voice of the Customer • Sealol ‘ case value stream >50 Improvements ident

15. Slide 15: Continuous control on quality and cost

    Continuous control on quality and cost • Global sourcing • Consistently controlling Quality, Delivery accuracy, Cost competitiveness, lead time and required capacity • Moving towards ‘Extended Enterprise approach’ (Lean) • Risk & continuity planning • Category concepts (economy of scale) • Control a

16. Slide 16: Valued people in a performance culture

    Valued people in a performance culture We grow when our people grow Competent people, leaders and experts, in a strong global performance culture are the foundation for being a trusted business partner Competence Active Performance management leadership culture • Managed core competences • Visionary

17. Slide 17: © Wärtsilä 29 March 2012 LARS HELLBERG

    17 © Wärtsilä 29 March 2012 LARS HELLBERG

Wärtsilä — Investor Day (March 2012) on 6ix