Wartsila Oyj Abp · OMXHEX:WRT1V

Wartsila Oyj Abp — Wärtsilä — Q3 2008 Earnings Presentation

26 slides from Wartsila Oyj Abp's earnings presentation, Oct 24, 2008

1. Slide 1: Wärtsilä Corporation Interim Report January-September 2008

   WÄRTSILÄ CORPORATION INTERIM REPORT JANUARY-SEPTEMBER 2008 OLE JOHANSSON, PRESIDENT & CEO 24 OCTOBER 2008 1 © Wärtsilä

2. Slide 2: Q3/08 Highlights

   Q3/08 Highlights • Order intake -9% • Net sales +22% • Operating result (EBIT) +28%, 10.8% of net sales • EPS EUR 0.97 (0.71) 2 © Wärtsilä

3. Slide 3: Order intake still at good level in all businesses

   Order intake still at good level in all businesses MEUR 6000 Third quarter development 5500 5000 1600 1 514 -9% 1 382 4500 1400 33% 4000 1200 1000 3500 -41% 800 3000 600 2500 400 19% 2000 200 1500 0 1000 Q3/2007 Q3/2008 500 0 2004 2005 2006 2007 1-9/2008 Order intake Power Plants Ship Power Services

4. Slide 4: Order book at record level

   Order book at record level MEUR 8000 7 762 26% 7000 6 162 18% 6000 5000 4000 20% 3000 2000 45% 1000 0 2004 2005 2006 30.9.2007 30.9.2008 Order book Power Plants Ship Power Services 4 © Wärtsilä

5. Slide 5: Strong order book good basis for 2009 and beyond

   Strong order book good basis for 2009 and beyond MEUR 7000 6000 5000 4000 3000 2000 1000 0 30.9.2007 30.9.2008 Delivery current year Delivery next year + 5 © Wärtsilä

6. Slide 6: Delivered engine megawatts from own factories

   Delivered engine megawatts from own factories MW 7000 6000 5000 4000 3000 2000 1000 0 2001 2002 2003 2004 2005 2006 2007 1-9/2008 Ship Power Power Plants Full-year estimate 6 © Wärtsilä

7. Slide 7: Net sales growing according to plan

   Net sales growing according to plan Strongest growth in Power Plants MEUR 4000 3500 Third quarter development 18% MEUR 1200 1 140 3000 22% 1000 933 27% 2500 15% 800 13% 600 2000 11% 400 1500 53% 200 0 1000 Q3/2007 Q3/2008 500 0 2004 2005 2006 2007 1-9/2008 Net sales Power Plants Ship Power Services

8. Slide 8: Strong Services business brings stability in fluctuating markets

   Strong Services business brings stability in fluctuating markets Net sales by business 1-9/2008 Ship Power Power Plants 31% (35) 26% (20) Services 43% (45) 8 © Wärtsilä

9. Slide 9: Strong operating profit

   Strong operating profit Growth according to plan MEUR 160 140 120 100 80 60 40 20 0 Q1 Q2 Q3 Q4 2005 2006 2007 2008 9 © Wärtsilä

10. Slide 10: Ship Power market - vessel order development

    Ship Power market - vessel order development Merchant Cruise&Ferry Offshore & Special Vessels 3 months moving average in DWT Million DWT # vessels Source data: Clarkson Research Services 10 © Wärtsilä

11. Slide 11: Ship Power market - merchant vessel order development

    Ship Power market - merchant vessel order development # vessels Tankers Bulkers Containers LNG carriers LPG carriers Reefers Other dry cargo Source data: Clarkson Research Services 11 © Wärtsilä

12. Slide 12: Ship Power market

    Ship Power market Market position of Wärtsilä’s marine engines Q3/2008 Medium-speed main engines Low-speed main engines Auxiliary engines Others Mitsubishi Wärtsilä 15%(15) 2%(2) 9%(8) Wärtsilä 13%(16) Wärtsilä 34%(32) MAN Diesel 27%(24) Caterpillar MAN Diesel Others (MAK) 85%(82) 91%(92) 25%(29) Wä

13. Slide 13: Ship Power quarterly order intake

    Ship Power quarterly order intake Q3/08 at good level Order Intake Net Sales MEUR MEUR 900 900 800 800 700 700 600 600 500 500 400 400 300 300 200 200 100 100 0 0 Q1 Q2 Q3 Q4 2003 2004 2005 2006 2007 2008 Ship Power quarterly net sales 2008 13 © Wärtsilä

14. Slide 14: Ship Power order intake

    Ship Power order intake Offshore continued strong, slowdown in Merchant MEUR Third quarter development 2800 Merchant Offshore 2400 35% 36% 2000 1600 1200 800 400 Special Cruise vessels & Ferry 0 9% Navy 10% 2004 2005 2006 2007 1-9/2008 10% 14 © Wärtsilä

15. Slide 15: Ship Power order intake

    Ship Power order intake Merchant segment order distribution Third quarter development MEUR Merchant 2800 35% RoRo 5% 2400 Bulkers 17% 2000 Cargo 4% 1600 Container 2% 1200 Tankers 8% 800 400 0 2004 2005 2006 2007 1-9/2008 15 © Wärtsilä

16. Slide 16: Power Plant markets

    Power Plant markets Market development Target markets per fuel 2004 - 2008 MW 25000 20000 8% 15000 (12) 10000 20% (24) 5000 49% (38) 0 2004 2005 2006 2007 2008 Wärtsilä’s market share June 2007 - LFO HFO GAS May 2008 Note I: Wärtsilä’s gas power plant target markets have changed after the review per

17. Slide 17: Power Plants quarterly order intake

    Power Plants quarterly order intake Q3/08 activity continued strong Order Intake Net Sales MEUR MEUR 800 800 700 700 600 600 500 500 400 400 300 300 200 200 100 100 0 0 *) Q1 Q2 Q3 Q4 2003 2004 2005 2006 2007 2008 Power Plants quarterly net sales 2008 *) 2004 Iraq-orders 17 © Wärtsilä

18. Slide 18: Power Plants order intake by application

    Power Plants order intake by application Industrial self-generation MEUR 18% 1800 1600 1400 1200 Grid stability & peaking Flexible 1000 32% baseload 48% 800 600 Oil & gas Renewable 3% 400 2% 200 Gas 36% 0 Oil 61% 2004 2005 2006 2007 1-9/2008 18 © Wärtsilä

19. Slide 19: Power Plants order intake

    Power Plants order intake Americas strongest region Asia 209 (311) Order intake 1-9/2008: 2,852 MW (2,057) Europe 447 (854) 54 352 Americas 1,354 (151) 43 155 52 434 870 Africa and Middle East 842 (741) 50 530 50 Flexible baseload Industrial self-generation 263 Oil & gas Grid stability & peaking 19

20. Slide 20: Services Net Sales

    Services Net Sales Strong growth continued MEUR 1600 Third quarter development 1400 22% MEUR 19% 500 (YOY) 452 1200 394 15% 16% 400 1000 17% 300 800 200 100 600 0 400 Q3/2007 Q3/2008 200 0 2004 2005 2006 2007 1-9/2008 20 © Wärtsilä

21. Slide 21: Strong cash flow

    Strong cash flow MEUR 1-9/08 1-9/07 2007 Cash flow from operating activities 255 299 431 Cash flow from investing activities -219 -159 -214 Cash flow from financing activities -164 -115 -95 Liquid funds at the end of period 166 202 296 21 © Wärtsilä

22. Slide 22: Good financial position

    Good financial position Solvency Gearing 50 0,50 % 45 0,40 40 35 0,30 30 25 0,20 20 15 0,10 10 5 0,00 2004 2005 2006 2007 30.9.2008 0 2004 2005 2006 2007 30.9.2008 -0,10 22 © Wärtsilä

23. Slide 23: Impact of financial crisis hard to predict

    Impact of financial crisis hard to predict • Ship Power; shipping financing tighter or even completely frozen – Risk of cancellations and slippage increases – Impact on Wärtsilä so far limited – Effects of possible cancellations approx. 10% of Wärtsilä’s total order book • Power Plants; impacts of c

24. Slide 24: Market outlook

    Market outlook • Ship Power; demand slowing down during the nearest quarters • Power Plants; continued high ordering activity expected in all segments • Solid growth in Services continues 24 © Wärtsilä

25. Slide 25: Prospects for 2008 reiterated

    Prospects for 2008 reiterated • Based on the strong order book, Wärtsilä’s net sales are expected to grow by about 25% in 2008 • Full-year profitability will exceed 11% 25 © Wärtsilä

26. Slide 26: Presentation name / Author

    Presentation name / Author

Wärtsilä — Q3 2008 Earnings Presentation on 6ix