Wärtsilä Oyj : Roadshow presentation May 2026

About this update from Wartsila Oyj Abp

Wärtsilä Shaping the decarbonisation of marine and energy Roadshow presentation May 2026 1 © Wärtsilä - Shaping the decarbonisation of marine and energy Wärtsilä Marine Marine offers engines, propulsion systems, hybrid technologies and integrated power transmission systems and related services that support our customers in moving towards carbon neutrality. Wärtsilä Energy Energy offers flexible, efficient, and reliable power plants and services for balancing and baseload applications in the changing energy landscape - enabling 100% renewable energy systems. Wärtsilä Energy Storage Energy Storage offers hardware, software, and lifecycle solutions that unlock more efficient and optimised power systems. Portfolio Business is reported as other business activities. Net sales by business, 2025 10% 10% 50% 30% Marine Energy Storage Energy Portfolio Business Committed to financial targets Marine and Energy, combined financial targets 5% annual organic growth 14% operating margin Energy Storage, financial targets Low double-digit annual organic growth 3-5% operating margin Group, financial targets Gearing below 0.5 Distribute a dividend of at least 50% of earnings MEUR % 9 000 8 000 7 000 6 000 5 000 4 000 3 000 2 000 1 000 0 2020 2021 2022 2023 2024 2025 Net sales Order intake Comparable operating result, % of net sales 14% 12% 10% 8% 6% 4% 2% Strong track record in innovations - ~4% of net sales on R&D yearly 0% © Market fundamentals Decarbonisation is shaping the marine industry POLICIES AND REGULATIONS The IMO 1 ambition is to reach Net Zero greenhouse gas emissions from international shipping by or around 2050 Risk that the postponement of the global IMO framework for carbon pricing mechanisms leads to a fragmented regulatory landscape and increased complexity Cost of carbon: EU ETS, FuelEU Maritime, and local green policies Access to capital: EU taxonomy, Poseidon Principles, and ESG TECHNOLOGY Progressive transition to carbon-neutral and zero-carbon fuels Next steps in abatement technologies, e.g., onboard carbon capture Increase in battery systems, hybrid solutions, and energy-saving technologies Fuel flexibility and upgradability to increase overall efficiency CONNECTIVITY AND DATA Optimisation solutions based on a holistic view of the entire transport system Performance-based service agreements with a focus on uptime, reliability, and fuel efficiency Vessels as data pools, becoming increasingly complex and interconnected Cyber security growing in importance International Maritime Organization Energy is moving towards a 100% renewable energy future POLICIES AND REGULATIONS EU: Climate-neutral by 2050 US: solid economics shield growth of renewables from policy turbulence China: Carbon neutral by 2060 Countries with net zero targets cover 77% of global emissions TECHNOLOGY Renewables becoming the main source of electricity (Source: IEA Renewables 2025 report) Intermittent renewable energy sources requiring balancing solutions Sustainable fuels integrated into balancing power solutions Optimising energy use and costs through digitalisation Cyber security growing in importance GROWING ENERGY DEMAND The electrification of industry, transportation, heating and cooling, as well as the growing reliance on AI and the need for data centres is driving electricity demand Electricity generation must nearly triple, and renewables must increase 7x to reach Net-Zero targets by 2050 (Source: IEA World Energy Outlook 2025) 3 © Our value creation potential is based on two strategic themes Transform Attractive growth opportunities in the decarbonisation transformation Perform Clear path for operational improvements and increased profitability 4 © Marine and Energy continue to execute earlier communicated strategies with a clear path to reach the updated financial targets Transform Industry-leading technology portfolio Market leader in: 4-stroke medium speed main engines Engine power plants Technology leader in green fuels Pioneer in marine carbon capture & storage >30% growth in service net sales since 2022 All-time high order book at the end of 2025 (~€6.7bn) Perform Services >60% of net sales in 2025 , moving up the service value ladder with book-to-bill ratio well above one Strong focus on quality of revenues Improving newbuild order margins Energy's focus on equipment deliveries instead of EPC Improving capacity utilisation Addressing footprint and cost structure wherever and whenever needed Limited additional capex needed to facilitate profitable growth Focus on continuous improvement 5% Annual organic growth 14% Operating margin 5 © Energy Storage continues to focus on selective profitable growth Transform Selective commercial approach focusing on our strengths: Excellence in project execution Industry-leading solution performance and thermal safety GEMS 1 for optimised energy management of a single installation, fleets and microgrids Multisourcing implemented for key components, ability to provide a product not made in China Growth in recurring revenue through longterm service agreements, enabled by GEMS 1 Continuous improvement of modularised hardware & software to create customer value Perform Strong focus on quality of revenues Industry-leading project delivery & execution capabilities Strong risk management, focus on equipment delivery Selective market expansion to new geographies (related investments expected to burden short-term profitability) Diversified supplier base Addressing cost structure wherever and whenever needed Capital-light business with positive cash flow Project business with volatility in revenues and operating margin Low double-digit Annual organic growth 3-5% Operating margin 1) GEMS software platform 6 © Strong market fundamentals and the decarbonisation transformation will support profitable growth in Marine business Annual equipment contracting of 4-stroke medium speed main engine-powered units (GW) 1) , CAGR +5% 5,0 4,2 Contracting in Wärtsilä's key segments is expected to remain resilient, with latest forecast indicating contracting to remain clearly above the 10-year average level up to 2030 Growth phase in cruise is expected to continue, while activity in ferries, offshore and LNG carriers remains supportive The IMO target of reaching net-zero GHG emissions by 2050 remains intact, despite the decision to delay the vote on adoption of the Net-Zero Framework by one year The decarbonisation of shipping continues to progress, driven by local regulations e.g. in the EU and a wide range of customers' decarbonisation strategies In the EU , regulatory landscape will double fuel costs up to 2030 2) Switch to carbon neutral and zero carbon fuels will be progressive , 2025 2030 reaching net-zero emissions will require a fundamental shift towards sustainable fuels and abatement solutions Source: Clarksons Research March 2026 forecast "Protectionist Policy" scenario, Low-case forecast for offshore , excludes navy; 2) assuming 100% of fuel consumption subject to Fit for 55 regulations and VSLFO price at 550 EUR/ton, EU allowances price from EUR 65/ton in 2024 to EUR 129/ton in 2030 7 © Energy market: Increased demand drives energy transition investments Electricity demand growth and future projections have increased substantially, creating market opportunities for equipment providers Two key themes have stood out in recent energy-related macroeconomic development: load growth and increased tariff-related uncertainty. In engine power plants, market demand for equipment and services has been strong. The baseload segment remains a consistent source of demand for thermal power with further growth opportunities in data centres. The drivers for engine balancing power plants continue to develop favourably. In battery energy storage, the demand is closely linked to the increasing share of intermittent renewables in the energy system, which continues to progress strongly. The US market is facing headwinds from tariffs and regulatory changes, though several drivers remain solid, with data centres as a potential new opportunity. After significant growth driven by solar up to mid-2020s, renewable capacity additions are expected to decrease slightly in 2026. Growth prospects toward the end of the decade remain solid. Sources: IEA Global Energy Review 2025, Electricity 2025, Electricity 2026, and Renewables 2024 (IEA: International Energy Agency) 8 © Service has provided resilient sales and profits for Wärtsilä over decades Service Net Sales, MEUR 1) 4 000 702 3 500 3 000 2 500 2 000 1 500 1 000 500 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 Negative impact from COVID-19 3,575 >€3.5bn service net sales in 2025 with good future growth potential >30% of installed base covered by service agreement at the end of 2025 >90% LTM renewal rate of existing service contracts in 2025 Service net sales as reported in Annual Reports 2000-2024. 2000-2018 service was reported as its own division and from 2019 onwards as a part of the other reporting segments. Figures reflect the data as per the organisation structure at each point in time and is not adjusted for changes such as acquisitions 9 © We continue to execute our services strategy on all steps of the service value ladder Our installed base of medium speed engines is increasing >30% of installed base 2) is under service agreements with further growth potential Moving up the service value ladder - agreements and performance-based agreements have 2-5X spend ratio (EUR/kW) relative to transactional services Total investments in Marine retrofits, including Carbon Capture and Storage solutions (CCS), are estimated to increase significantly over the next decade 3) Customer spend ratio EUR/kW 2) 4-stroke engine MW 3) Source: Clarksons Source: CMD 2023 10 © Book-to-bill shows growth for service 12m rolling book-to-bill 1) 1,75 1,50 1,25 1,00 0,75 0,50 Q222 Q322 Q422 Q123 Q223 Q323 Q423 Q124 Q224 Q324 Q424 Q125 Q225 Q325 Q425 Q126 Service Spare parts Field service Service agreements Retrofits and upgrades 2023 data restated to reflect the redefined organisational structure as of 1 Jan 2024. Figures prior to 2023 reflect the data as per the organisation structure at each point in time and is not adjusted for changes such as acquisitions. 11 © Rolling 12-month book-to-bill for service above 1 in both Marine and Energy Marine , 12m rolling book-to-bill 1) Energy , 12m rolling book-to-bill 1,75 1,75 1,50 1,50 1,25 1,25 1,00 1,00 0,75 0,75 0,50 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 0,50 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2022202220222023202320232023202420242024202420252025202520252026 Marine, Total service Spare parts Field service Service agreements Retrofits and upgrades 2022202220222023202320232023202420242024202420252025202520252026 Energy, Total service Spare parts Field service Service agreements Retrofits and upgrades 2023 data restated to reflect the redefined organisational structure as of 1 Jan 2024. Figures prior to 2023 reflect the data as per the organisation structure at each point in time. 12 © All Portfolio Business unit divestments expected to be completed by Q3/2026 ✓ Automation, Navigation & Control Systems The transaction was completed on 1 July 2025. ✓ Marine Electrical Systems The transaction was completed on 31 October 2025. ✓ Gas Solutions Order book was adjusted approximately by EUR 900 million Annual revenue in 2025 was EUR ~225 million In December 2025, Wärtsilä announced that it had agreed to divest its Gas Solutions business to Mutares SE & Co. KGaA. Annual revenue in 2025 was EUR ~390 million ✓ Subject to approvals, the transaction is expected to be completed in the second quarter of 2026. Water & Waste In February 2026, Wärtsilä announced that it had agreed to divest its Water & Waste business to the Swedish investment company Solix Group AB. Annual revenue in 2025 was EUR ~50 million Subject to approvals, the transaction is expected to be completed in the third quarter of 2026. Following this, Wärtsilä will have completed the divestment of all business units included in its Portfolio Business and there are no units left Q4/26 onwards 13 © Agreed to be divested, and divestment completed ✓ Agreed to be divested, divestment not yet completed Solid progress towards financial targets in Marine and Energy combined Marine and Energy combined Net sales and operating margin %, last 12 months Energy Storage Net sales and operating margin %, last 12 months Marine and Energy Group Gearing Organic growth +13% 13.9% Group Dividend distribution Organic growth -20% 4.8% combined financial targets 5% annual organic growth 14% operating margin Energy Storage financial targets Low double-digit annual organic growth 3-5% operating margin Group financial targets Gearing below 0.5 Distribute a dividend of at least 50% of earnings Dividend per share, extraordinary, EUR *In 2022, dividend was paid despite negative EPS 14 © Wärtsilä will further expand its industrial capacity in Finland by 35% to meet a global increase in demand Wärtsilä will invest approximately 140 MEUR to further expand its production capacity by 35% at Sustainable Technology Hub (STH) in Vaasa, Finland and the associated global supply chain This expansion will increase Wärtsilä's industrial capacity and strengthen the capacity of the associated global supply chain, positioning Wärtsilä to meet growing market demand in energy and marine The expanded capacity will enable Wärtsilä to deliver a higher volume of engines, and better support customer needs and continued business growth long-term The new production capacity will be installed within the STH facility expansion announced in April 2025 and is expected to be commissioned in Q1/2028 15 © Profitability drivers + Supporting drivers + / - Uncertainties - Negative factors Continued decarbonisation in both the energy and marine markets Renewables is the cheapest way to generate electricity Growing service business Strong and long order book both in new equipment and services Improved operational leverage Improved capacity utilisation Continuous improvement Geopolitical tensions Tariffs and trade restrictions Recession risk Currency rates Negative mix impact from increasing equipment deliveries The low order intake continues to put significant pressure on Energy Storage profitability going forward. Unless short-term order intake improves significantly, the business starts incurring losses in the second half of the year 16 © Marine highlights 17 © Leading the path towards decarbonisation by developing state-of-the-art tech and enabling adoption of clean fuels Offering Multi-fuel 4-stroke engines Propulsion systems Wärtsilä Marine - Key figures 2025 Order intake 3,926 MEUR Net sales 3,494 MEUR Comparable operating result 443 MEUR Share of total net sales 2025 49% 51% Marine Other businesses Marine net sales split 2025 36% Services Catalyst systems Fuel gas supply systems Hybrid and electrification solutions Voyage and fleet optimisation Exhaust treatment Shaft line solutions Services Spare parts and maintenance services Performance based agreements Retrofits and upgrades Key customer segments Cruise & ferry 12.7% of net sales 64% Equipment Offshore Merchant Other segments: Special vessels Gas carriers Navy 18 © Decarbonisation can be reached through different pathways; net-zero targets will require a fundamental shift towards sustainable fuels Decarbonisation pathways Burn less fuel 1) Vessel efficiency Operational efficiency Clean up emissions 1) Emission abatement Use alternative energy sources Sustainable fuels Electrification Reduction of GHG emissions and fuel cost E.g., energy efficiency improvement of engine, propulsion, hull, other systems Reduction of GHG emissions and fuel cost E.g., speed reduction, route optimisation, onboard energy management Significant reduction of GHG emissions through onboard carbon capture, regardless of the fuel CO2 offloading infrastructure, onboard storage and value chain needed Significant / total reduction of GHG emissions Technology available; infrastructure and supply under development Zero GHG emissions through battery-electric propulsion Viable on short ranges due to low energy density Approximate greenhouse gas (GHG) emission reduction potential 25% 25% 70% 100% 100% 1) These pathways shall be combined with the utilisation of alternative fuels to support long term IMO targets 19 © A progressive switch to sustainable fuels is already under way Sustainable fuel uptake scenario for net-zero in 2050 1) Total energy consumption, EJ Reduced energy demand 10 5 Fossil fuels (HFO, LSFO, MGO, MDO, LNG) 2) Carbon-neutral and zero-carbon fuels (methanol, ammonia, bio- / electro- fuels) Electricity from grid 2025 2030 2035 2040 2045 2050 15 Fuel transition is under way : ~50% of tonnage on orderbook is set to use alternative fuels; long-term fuel mix is dependent on supply of different fuels LNG is still #1 alternative fuel. Methanol and ammonia will pick up in the longer run Hybrids, batteries, ESTs 3) are growing : - ~211 hybrid / full-electric 2 000+ GT vessels were ordered in 2025, with ~65% growth in ordered capacity compared to 2024 0 1) Source: DNV Maritime Forecast 2050; 2) HFO - Heavy Fuel Oil; LSFO - Low Sulphur Fuel Oil; MGO - Marine Gas Oil; MDO - Marine Diesel Oil; 3) Energy Saving Technology Source: CMD 2023 20 © ©

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