Wartsila Oyj Abp · OMXHEX:WRT1V

Wartsila Oyj Abp — Wärtsilä — FY2007 Earnings Presentation

32 slides from Wartsila Oyj Abp's earnings presentation, Feb 5, 2008

1. Slide 1: Wärtsilä Corporation 2007 Result Presentation

   WÄRTSILÄ CORPORATION 2007 RESULT PRESENTATION OLE JOHANSSON, PRESIDENT & CEO 5 FEBRUARY 2008 1 © Wärtsilä

2. Slide 2: Highlights

   Highlights – Strong growth in 2007 order intake. Solid demand continues through first part of 2008 – Net sales grew by 18 percent to EUR 3,763 million. Accelerating growth in 2008 – Operating profit up by 45% to EUR 379 million. Operating margin 10.1% (8.2). Profitability improving in 2008 2 © Wärts

3. Slide 3: Key figures

   Key figures MEUR Q4/07 Q4/06 2007 2006 Order intake 1 594 1 318 5 633 4 621 Order book 31.12. 6 308 4 439 Net sales 1 272 986 3 763 3 190 Operating result 146 99 379 262 % of net sales 11.5 10.1 10.1 8.2 Profit before taxes 145 92¹ 372 255² Earnings/share, EUR 1.05 0.61¹ 2.74 2.03² Cash flow from op

4. Slide 4: Net sales by market area

   Net sales by market area MEUR 4000 3500 3000 2500 2000 1500 1000 500 0 2003 2004 2005 2006 2007 Asia Europe Americas Other 4 © Wärtsilä

5. Slide 5: Personnel development

   Personnel development 18000 16000 14000 12000 10000 8000 6000 4000 2000 0 2003 2004 2005 2006 2007 Services Ship Power Power Plants Industrial Operations 5 © Wärtsilä

6. Slide 6: Order book distribution

   Order book distribution MEUR 4000 3500 3000 2500 2000 1500 1000 500 0 31.12.2006 31.12.2007 Delivery next year Delivery next year + 6 © Wärtsilä

7. Slide 7: Delivered engine megawatts from own factories

   Delivered engine megawatts from own factories MW 7000 6500 6000 5500 5000 4500 4000 3500 3000 2500 2000 1500 1000 500 0 2001 2002 2003 2004 2005 2006 2007 2008E Power Plants Ship Power Full-year estimate 7 © Wärtsilä

8. Slide 8: Order intake continued strong

   Order intake continued strong MEUR 6000 Fourth quarter development 5500 MEUR 5000 1 594 1600 21% 4500 1400 1 318 4000 1200 26% 3500 1000 3000 800 3% 600 2500 400 2000 49% 200 1500 0 1000 Q4/2006 Q4/2007 500 0 2003 2004 2005 2006 2007 Total order intake Power Plants Ship Power Services 8 © Wärtsilä

9. Slide 9: Order book growing

   Order book growing MEUR 6500 6 308 6000 5500 42% 5000 4 439 14% 4500 4000 3500 3000 42% 2500 2000 1500 1000 52% 500 0 2003 2004 2005 31.12.2006 31.12.2007 Total order book Power Plants Ship Power Services 9 © Wärtsilä

10. Slide 10: Strong development in net sales

    Strong development in net sales MEUR 4000 3500 18% Fourth quarter development MEUR 1400 3000 29% 1 272 27% 1200 7% 986 2500 5% 1000 23% 800 2000 600 11% 400 1500 72% 200 0 1000 Q4/2006 Q4/2007 500 0 2003 2004 2005 2006 2007 Total net sales Power Plants Ship Power Services 10 © Wärtsilä

11. Slide 11: Net sales by business 2007

    Net sales by business 2007 Ship Power Power Plants 35% (31) 24% (29) Services 41% (40) 11 © Wärtsilä

12. Slide 12: Improved profitability

    Improved profitability MEUR % 600 20% 500 15% 400 300 10% 200 5% 100 0 0% 2005 2006 2007 2008E EBIT EBIT % 12 © Wärtsilä

13. Slide 13: Ship Power market - vessel order development

    Ship Power market - vessel order development Merchant Cruise&Ferry Offshore & Special Vessels 3 months moving average in dwt 450 16 400 14 350 12 300 # vessels 10 250 DWT 8 200 6 150 4 100 50 2 0 0 01-03 04-03 07-03 10-03 01-04 04-04 07-04 10-04 01-05 04-05 07-05 10-05 01-06 04-06 07-06 10-06 01-07

14. Slide 14: Ship Power market - merchant vessel order development

    Ship Power market - merchant vessel order development Tankers Bulkers Containers LNG carriers LPG carriers Reefers Other dry cargo 450 400 350 300 # vessels 250 200 150 100 50 0 01-03 04-03 07-03 10-03 01-04 04-04 07-04 10-04 01-05 04-05 07-05 10-05 01-06 04-06 07-06 10-06 01-07 04-07 07-07 10-07 So

15. Slide 15: Ship Power 2007 order intake

    Liikevaihto Ship Power 2007 - order - Ship intake Power 2007 MEUR 2800 Merchant Offshore 2400 43% 36% 2000 1600 1200 800 Cruise 400 & Ferry Navy 7% 0 Special vessels 5% 2003 2004 2005 2006 2007 10% 15 © Wärtsilä

16. Slide 16: Ship Power - market development

    Ship Power - market development Market position of Wärtsilä’s marine engines Q4/2007 Medium-speed main engines Low-speed main engines Auxiliary engines Others Mitsubishi Wärtsilä 12%(12) 3%(3) 6%(5) Wärtsilä 16%(16) Wärtsilä 38%(42) MAN Diesel 27%(23) MAN Diesel Others Caterpillar (MAK) 81%(81) 94%(

17. Slide 17: Ship Power - market size & Wärtsilä's market share development

    Ship Power - market size & Wärtsilä’s market share development Market size, Wärtsilä’s MW market share, % 40000 80% 35000 70% 30000 60% 51% 25000 50% 45% 38% 20000 34% 40% 15000 30% 22% 24% 18% 10000 16% 16% 20% 20% 5000 10% 9% 9% 8% 6% 6% 0 0% 2003 2004 2005 2006 2007 Medium-speed Low-speed Auxilia

18. Slide 18: Ship Power net sales 2007

    Liikevaihto Net Shipsales Power2007 2007 - net - Ship -sales Ship Power 2007 Power MEUR 1400 Merchant Offshore 1200 46% 23% 1000 800 600 400 Cruise & Ferry 200 14% Navy 0 Special 6% 2003 2004 2005 2006 2007 vessels 10% 18 © Wärtsilä

19. Slide 19: Ship Power - net sales 2007

    Ship Power - net sales 2007 Merchant MEUR 46% Bulk carriers 1400 General cargo 2% 5% Offshore 1200 23% LNG 13% 1000 800 Tankers 13% 600 400 Cruise & Ferry Container 14% 200 ships 13% Navy 0 Special 6% 2003 2004 2005 2006 2007 vessels 10% 19 © Wärtsilä

20. Slide 20: Services - solid growth continued

    Services - solid growth continued MEUR 1600 Fourth quarter development 1400 22% MEUR 450 431 400 1200 350 16% 350 23% 1000 17% 300 250 6% 200 800 150 100 600 50 0 400 Q4/2006 Q4/2007 200 0 2003 2004 2005 2006 2007 20 © Wärtsilä

21. Slide 21: Wärtsilä Services

    Continuously expanding capabilities Wärtsilä Services Engine Services Automation Services Propulsion Services Operations & Management Reconditioning Services Training Services Ship Services 21 © Wärtsilä

22. Slide 22: Continuously expanding the own network

    Continuously expanding the own network Product Company „ 70 countries Network „ > 160 locations Workshop „ > 9 300 people Newest locations „ ~ 6 000 field service forces 22 © Wärtsilä February 5, 2008 Presentation name / Author

23. Slide 23: Power Plants - order intake 2007

    Power Plants - order intake 2007 Grid stability MEUR & peaking Oil & gas 2% 1600 11% 1400 Industrial self- 1200 generation 19% 1000 800 Flexible baseload 68% 600 400 Renewable 15% 200 Gas 36% 0 Oil 49% 2003 2004 2005 2006 2007 23 © Wärtsilä

24. Slide 24: Power Plants - order intake by region

    Power Plants - order intake by region Order intake 1-12/2007: 2,776 MW (2,158) Asia 433 (633) Europe 929 (408) 645 (245) 373 (396) Americas 434 (407) 147 (109) 120 (54) 61 (238) 204 (217) 18 (0) Africa and Middle East 979 (710) 85 (56) 78 (122) 66 (13) 687 (381) 14 (13) Flexible baseload Industrial

25. Slide 25: Power Plants - market size & Wärtsilä's market share development

    Power Plants - market size & Wärtsilä’s market share development Market size, Wärtsilä’s MW market share, % 11000 80% 10000 74% 70% 9000 60% 8000 7000 50% 53% 44% 6000 38% 34% 40% 5000 4000 24% 30% 23% 19% 20% 3000 20% 12% 2000 9% 8% 8% 10% 1000 1% 1% 0 0% 2003 2004 2005 2006 2007 LFO HFO GAS 25 © W

26. Slide 26: Power Plants - net sales 2007

    Power Plants - net sales 2007 MEUR Grid stability Oil & gas & peaking 4% 1000 7% 900 800 Industrial self- 700 generation 30% 600 500 Flexible baseload 60% 400 300 200 100 0 2003 2004 2005 2006 2007 26 © Wärtsilä

27. Slide 27: Cash flow

    Cash flow MEUR 2007 2006 Cash flow from operating activities 431 302 Cash flow from investing activities -214 148 Cash flow from financing activities -95 -387 Liquid funds at the end of period 296 179 27 © Wärtsilä

28. Slide 28: Financial position

    Financial position Solvency Gearing 50 0,5 % 45 0,4 40 35 0,3 30 25 0,2 20 15 0,1 10 5 0,0 2003 2004 2005 2006 2007 0 2003 2004 2005 2006 2007 -0,1 NOTE: 2003 according to FAS, 2004-> IFRS Convertible subordinated debentures treated as equity 28 © Wärtsilä

29. Slide 29: EPS and dividend/share

    EPS and dividend/share EUR 4,0 3,5 3,0 2,5 2,0 1,5 1,0 0,5 0,0 -0,5 -1,0 2003 2004² 2005 2006² 2007¹ EPS Dividend Extra dividend 1 Dividend 2007 - Proposal of the Board 2 Includes one-off capital gains; Assa Abloy & Ovako 29 © Wärtsilä

30. Slide 30: Market outlook

    Market outlook Market activity to continue solid during the first half of 2008 – In Ship Power some slowdown might be seen at the end of the spring – Activity in the Power Plant market to continue very strong – Wärtsilä continues to work at capacity 30 © Wärtsilä

31. Slide 31: Wärtsilä's prospects

    Wärtsilä’s prospects • Based on the strong order book, Wärtsilä’s net sales are expected to grow by about 25% in 2008 • Profitability will exceed 11% • Wärtsilä’s profitability varies considerably from one quarter to another. This pattern will repeat itself during the current year. The first quarter

32. Slide 32: Wärtsilä

    re, WARTSILA WARTSILA.COM

Wärtsilä — FY2007 Earnings Presentation on 6ix