Wartsila Oyj Abp · OMXHEX:WRT1V

Wartsila Oyj Abp — Wärtsilä — Q2 2009 Earnings Presentation

27 slides from Wartsila Oyj Abp's earnings presentation, Jul 22, 2009

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

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

2. Slide 2: Q2/09 Highlights

   Q2/09 Highlights • Net sales grew to EUR 1 333 million (+22%) • Operating result before nonrecurring restructuring items EUR 155 million (+25%), 11.7 % of net sales • EPS EUR 1.01 (0.96) • Order intake EUR 785 million (-45%) 2 © Wärtsilä

3. Slide 3: Order intake

   Order intake MEUR 6000 Second quarter development 5500 5000 1600 1432 -45% 4500 1400 4000 1200 14% 1000 3500 785 800 3000 600 -86% 2500 400 2000 -54% 200 1500 0 1000 Q2/2008 Q2/2009 500 0 2005 2006 2007 2008 1-6/2009 Order intake Power Plants Ship Power Services 3 © Wärtsilä

4. Slide 4: Order book remains substantial

   Order book remains substantial MEUR 8000 7 479 -22% 7000 -2% 6000 5 829 5000 -26% 4000 3000 2000 -19% 1000 0 2005 2006 2007 2008 30.6.2008 30.6.2009*) Order book Power Plants Ship Power Services *) Cancellations amounting to EUR 154 million have been deducted from the order book during the review pe

5. Slide 5: Order book distribution

   Order book distribution MEUR 5000 4000 3000 2000 1000 0 30.6.2008 30.6.2009 Delivery current year Delivery next year + 5 © Wärtsilä

6. Slide 6: Strong growth in net sales

   Strong growth in net sales MEUR 5000 4500 Second quarter development 4000 23% MEUR 1400 1 333 22% 3500 1200 18% 1 092 1000 3000 3% 27% 800 2500 600 31% 400 2000 39% 200 1500 0 Q2/2008 Q2/2009 1000 500 0 2005 2006 2007 2008 1-6/09 Net sales Power Plants Ship Power Services 6 © Wärtsilä

7. Slide 7: Net sales evenly spread between the businesses 1-6/2009

   Net sales evenly spread between the businesses 1-6/2009 Ship Power Power Plants 33% (31) 32% (23) Services 35% (45) 7 © Wärtsilä

8. Slide 8: Strong operating profit

   Strong operating profit MEUR 200 11.7% 180 160 140 120 100 80 60 40 20 0 Q1 Q2 *) Q3 Q4 2006 2007 2008 2009 *) Operating result before EUR 6 million nonrecurring restructuring items 8 © Wärtsilä

9. Slide 9: Ship Power market

   Ship Power market Standstill continues Source: Clarkson Research Services Limited 9 © Wärtsilä

10. Slide 10: Ship Power market

    Ship Power market Market position of Wärtsilä’s marine engines Medium-speed main engines Low-speed main engines Auxiliary engines Others Mitsubishi Wärtsilä 12%(21) 3%(5) 6%(6) Wärtsilä 11%(13) Wärtsilä 40%(35) MAN Diesel 30%(27) MAN Diesel Others Caterpillar 86%(82) 94%(94) (MAK) 18%(17) Wärtsilä’s

11. Slide 11: 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 11 © Wärtsilä

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

    Ship Power order book June 30, 2009 All vessel segments represented RoRo LNG 4% 8% Bulkers Merchant 11% Offshore 53% 28% Containers 9% Special vessels 7% Cruise & Ferry Tankers 6% 9% Navy Cargo 5% 12% Ship Design 1% 12 © Wärtsilä

13. Slide 13: 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 13 © Wärtsilä

14. Slide 14: Power Plants order intake by application

    Power Plants order intake by application MEUR 2000 1800 Industrial self-generation 1600 Grid stability 29% 1400 & peaking 20% 1200 1000 Flexible baseload 800 51% 600 400 200 Gas 0 23% Oil 77% 2005 2006 2007 2008 1-6/2009 14 © Wärtsilä

15. Slide 15: Power Plants order intake

    Power Plants order intake Africa and Middle East strongest region Order intake 1-6/2009: 1,064 MW (1,980) Asia 0 (171) Europe 320 (303) 286 Americas 262 (986) 34 53 209 Africa and Middle East 482 (520) 199 283 Flexible baseload Industrial self-generation Oil & gas Grid stability & peaking 15 © Wärts

16. Slide 16: Services net sales

    Services net sales Historically high level MEUR 2000 1800 Second quarter development 18% MEUR 1600 500 469 454 3% 1400 22% 400 16% 1200 300 1000 200 800 100 600 0 Q2/2008 Q2/2009 400 200 0 2005 2006 2007 2008 1-6/2009 16 © Wärtsilä

17. Slide 17: 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 17 © Wärtsilä

18. Slide 18: Services – Net sales distribution

    Services – Net sales distribution Field service 27% Spare parts 56% Contracts 12% Projects 5% 18 © Wärtsilä

19. Slide 19: Services potential

    Services potential Laid-up tonnage 18% 16% 14% 12% % of Fleet 10% 8% 6% 4% 2% Jul.08 Aug.08 Sep.08 Oct.08 Nov.08 Dec.08 Jan.09 Feb.09 Mar.09 Apr.09 May.09 Jun.09 Anchored * Idle** * Anchored (reported navigation status at anchor). Source Bloomberg (AISLive). More than 25 000 vessels (>299 GT) covere

20. Slide 20: Cash flow

    Cash flow MEUR 1-6/09 1-6/08 2008 Cash flow from operating activities -72 207 278 Cash flow from investing activities -90 -75 -329 Cash flow from financing activities 81 -266 -26 Liquid funds at the end of period 118 143 197 20 © Wärtsilä

21. Slide 21: Working capital

    Working capital MEUR 2000 25% 1800 June 30, 2009 2000 1600 20% 1800 1400 1600 1400 1200 15% 1200 1000 11.4%* 1000 800 591 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 155 176 200 102 0 0% 2003 2004 2005 2006 2007 2008 Working Cap

22. Slide 22: Financing

    Financing MEUR 2000 1800 1600 541 1400 1200 445 1000 30 Total EUR 890 800 154 million drawn 90 600 400 646 200 0 Drawn long- Drawn Drawn short- Undrawn Undrawn Undrawn short- term loans revolving term loans long-term revolving term loans credits loans credits (uncommitted) (committed) (committed) 22

23. Slide 23: 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 30.6.2009 2005 2006 2007 2008 30.6.2009 -0,10 23 © Wärtsilä

24. Slide 24: Business risks

    Business risks • Business risks mainly unchanged • Ship Power – Slippage of ship yard delivery schedules – Potential cancellation risk approximately EUR 800 million (earlier estimate EUR 1,000 million at end of Q1/09) • Power Plants – Timing of orders dependent on availability of financing • Service

25. Slide 25: Market outlook

    Market outlook • Ship Power: quick recovery unlikely, short term focus on specialised tonnage • Power Plants: demand remains at a good level, but timing of orders dependent on availability of financing • Stable development in Services continues, but visibility has become shorter 25 © Wärtsilä

26. Slide 26: Prospects for 2009 reiterated

    Prospects for 2009 reiterated • Despite the risk of cancellations and the nonrecurring restructuring items booked in the second quarter, the substantial order book should support a 10-20 percent growth in net sales for 2009, which would maintain the profitability at last year’s good level. 26 © Wärt

27. Slide 27: Presentation name / Author

    Presentation name / Author

Wärtsilä — Q2 2009 Earnings Presentation on 6ix