Wartsila Oyj Abp · OMXHEX:WRT1V

Wartsila Oyj Abp — Wärtsilä — Q3 2009 Earnings Presentation

28 slides from Wartsila Oyj Abp's earnings presentation, Oct 22, 2009

1. Slide 1: Wärtsilä Corporation Interim Report January-September 2009

   WÄRTSILÄ CORPORATION INTERIM REPORT JANUARY-SEPTEMBER 2009 OLE JOHANSSON, PRESIDENT & CEO 22 OCTOBER 2009 1 © Wärtsilä

2. Slide 2: Q3/09 Highlights

   Q3/09 Highlights • Net sales EUR 1,167 million (+2%) • Operating result 133 million (+9%), 11.4% of net sales • EPS EUR 0.87 (0.97) • Order intake EUR 725 million (-48%) • Cash flow from operating activities EUR 214 million (49) 2 © Wärtsilä

3. Slide 3: Net sales on a good level

   Net sales on a good level MEUR 5000 4500 Third quarter development 4000 23% MEUR 1400 1 140 2% 1 167 3500 1200 18% -6% 1000 3000 27% 800 2500 600 10% 400 2000 3% 200 1500 0 Q3/2008 Q3/2009 1000 500 0 2005 2006 2007 2008 1-9/09 Net sales Power Plants Ship Power Services 3 © Wärtsilä

4. Slide 4: Net sales by business 1-9/09

   Net sales by business 1-9/09 Ship Power Power Plants 33% (31) 31% (26) Services 35% (43) Total EUR 3,741 million (3,082) 4 © Wärtsilä

5. Slide 5: Operating profit developed according to plan

   Operating profit developed according to plan MEUR 200 180 160 11.4% 140 120 100 80 60 40 20 0 Q1 Q2 *) Q3 Q4 2006 2007 2008 2009 *) Operating result before EUR 6 million nonrecurring restructuring items 5 © Wärtsilä

6. Slide 6: Order intake

   Order intake MEUR 6000 Third quarter development 5500 5000 1600 1 382 -48% 4500 1400 4000 1200 +11% 1000 3500 800 725 3000 600 -85% 2500 400 2000 -66% 200 1500 0 1000 Q3/2008 Q3/2009 500 0 2005 2006 2007 2008 1-9/2009 Order intake Power Plants Ship Power Services 6 © Wärtsilä

7. Slide 7: Order book

   Order book MEUR 8000 7 762 -31% 7000 +13% 6000 5 351 5000 4000 -36% 3000 2000 -31% 1000 0 2005 2006 2007 2008 30.9.2008 30.9.2009*) Order book Power Plants Ship Power Services *) Cancellations amounting to EUR 279 million have been deducted from the order book during the review period. Wärtsilä sees

8. Slide 8: Order book distribution

   Order book distribution MEUR 7000 6000 5000 4000 3000 2000 1000 0 30.9.2008 30.9.2009 Delivery current year Delivery next year + 8 © Wärtsilä

9. Slide 9: Ship Power market

   Ship Power market Market challenges continue Source: Clarkson Research Services Limited 9 © Wärtsilä

10. Slide 10: Ship Power quarterly order intake

    Ship Power quarterly order intake MEUR 900 800 700 600 500 400 300 200 100 0 2004 2005 2006 2007 2008 2009 Q1 Q2 Q3 Q4 10 © Wärtsilä

11. Slide 11: Ship Power market

    Ship Power market Market position of Wärtsilä’s marine engines Medium-speed main engines Low-speed main engines Auxiliary engines Mitsubishi Wärtsilä 5%(3) 4%(6) Wärtsilä Others 13%(11) 17%(12) Wärtsilä 31%(40) MAN Diesel 45%(30) MAN Diesel Others 82%(86) 96%(94) Caterpillar (MAK) 7%(18) Wärtsilä’s

12. Slide 12: Ship Power order book September 30, 2009

    Ship Power order book September 30, 2009 All vessel segments represented RoRo LNG 4% 7% Bulkers Merchant 11% Offshore 53% 28% Containers 8% Special vessels 7% Cruise & Ferry Tankers 6% 9% Navy Cargo 5% 14% Ship Design 1% Total EUR 3,230 million (5,010) 12 © Wärtsilä

13. Slide 13: Power Plant markets

    Power Plant markets Market development and market shares Target markets per fuel 2005 - 2009 MW 25000 20000 13% 15000 (8) 10000 3% (20) 5000 46% (49) 0 2005 2006 2007 2008 2009 Wärtsilä’s market share June 2008 - LFO HFO GAS May 2009 Note I: Wärtsilä’s gas power plant target markets have changed aft

14. Slide 14: Power Plants quarterly order intake

    Power Plants quarterly order intake MEUR 600 500 400 300 200 100 0 *) 2004 2005 2006 2007 2008 2009 Q1 Q2 Q3 Q4 *) 2004 Iraq-orders 14 © Wärtsilä

15. Slide 15: Power Plants order intake by application

    Power Plants order intake by application MEUR 2000 1800 Industrial self-generation 1600 Grid stability 29% 1400 & peaking 19% 1200 Oil & gas 1000 1% Flexible baseload 800 51% 600 Renewables 3% 400 200 Gas 0 34% Oil 64% 2005 2006 2007 2008 1-9/2009 15 © Wärtsilä

16. Slide 16: Power Plants order intake

    Power Plants order intake Africa and Middle East strongest region Order intake 1-9/2009: 1,382 MW (2,852) Asia 90 (209) Europe 400 (447) 321 90 Americas 280 (1,354) 52 27 71 209 Africa and Middle East 612 (842) 307 291 Flexible baseload 14 Industrial self-generation Oil & gas Grid stability & peakin

17. Slide 17: Services net sales

    Services net sales Activity on a good level MEUR 2000 1800 Third quarter development 18% MEUR 500 1600 452 424 -6% 1400 22% 400 16% 1200 300 1000 200 800 100 600 0 Q3/2008 Q3/2009 400 200 0 2005 2006 2007 2008 1-9/2009 17 © Wärtsilä

18. Slide 18: Services – Net sales per quarter

    Services – Net sales per quarter MEUR 600 500 400 300 200 100 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 Q1 Q2 Q3 Q4 18 © Wärtsilä

19. Slide 19: Services – Net sales distribution Q3/09

    Services – Net sales distribution Q3/09 Field service 28% Spare parts 56% Contracts 12% Projects 4% Total EUR 424 million (452) 19 © Wärtsilä

20. Slide 20: Services: Lay-ups have stabilised

    Services Lay-ups have stabilised 18% 16% 14% % of Fleet 12% 10% 8% 6% 4% 2% Oct.08 Dec.08 Feb.09 Apr.09 Jun.09 Aug.09 Anchored * Idle** * Anchored (reported navigation status at anchor). Source Bloomberg (AISLive). More than 25 000 vessels (>299 GT) covered. ** Idle (no movement for 19 days for cont

21. Slide 21: Wärtsilä Industrial Operations

    Wärtsilä Industrial Operations Evaluating alternatives for adjusting manufacturing capacity Finland China, 800 employees 1,450 employees Qingdao: J/V: QMD Norway, 400 employees Vaasa Wuxi: Transverse thrusters, Rubbestadneset: Propellers, gears, propulsion controls, R&D Engine manufacturing, R&D LCT

22. Slide 22: Cash flow

    Cash flow MEUR 7-9/09 7-9/08 1-9/09 1-9/08 2008 Cash flow from operating activities 214 49 142 255 278 Cash flow from investing activities -23 -143 -113 -219 -329 Cash flow from financing activities -45 102 36 -164 -26 Liquid funds at the end of period 262 158 262 158 197

23. Slide 23: Working capital decreased by EUR 80 million during the quarter

    Working capital decreased by EUR 80 million during the quarter MEUR 2000 25% 1800 30 September 2009 MEUR 2000 1600 20% 1800 1400 1600 1400 1200 15% 1200 10.2%* 1000 1000 800 511 9.5% 600 800 10% 8.4% 400 7.0% 600 5.8% 200 5.5% 0 400 2.7% 5% * Annualised Working 206 212 267 Capital / Net Sales 155 17

24. Slide 24: Committed loans September 30, 2009

    Committed loans September 30, 2009 MEUR 2000 1800 1600 1400 1200 530 1000 30 Total EUR 800 183 852 million 47 drawn 600 400 622 200 0 Drawn long- Current portion Drawn short- Undrawn long-term Undrawn revolving term loans of long-term term loans loans credits loans At the end of the reporting period

25. Slide 25: Financial position

    Financial position Solvency Gearing % 50 0,70 45 0,60 40 0,50 35 30 0,40 25 0,30 20 0,20 15 10 0,10 5 0,00 0 2005 2006 2007 2008 30.9.2009 2005 2006 2007 2008 30.9.2009 -0,10 25 © Wärtsilä

26. Slide 26: Business risks

    Business risks • Ship Power – Slippage of ship yard delivery schedules – Cancellation risk approximately EUR 650 million (EUR 800 million at end of Q2/09) • Power Plants – The impact from the financial crisis can mainly be seen in timing of bigger projects • Services – Possible reduction of maintena

27. Slide 27: Prospects for 2009 reiterated

    Prospects for 2009 reiterated • Despite the risk of cancellations and the nonrecurring restructuring items booked in the second quarter, the order book for 2009 should support a 10-20 percent growth in net sales for 2009, which would maintain profitability at last year’s good level. 27 © Wärtsilä

28. Slide 28: Presentation name / Author

    Presentation name / Author

Wärtsilä — Q3 2009 Earnings Presentation on 6ix