Wärtsilä's Financial Statements Bulletin January-December 2014

Wärtsilä Corporation FINANCIAL STATEMENTS BULLETIN 29 January 2015 at 8.30 local time

WÄRTSILÄ'S FINANCIAL STATEMENTS BULLETIN JANUARY-DECEMBER 2014

GOOD PERFORMANCE DESPITE CHALLENGING MARKET CONDITIONS

This release is a summary of Wärtsilä's financial statements bulletin 2014. The complete report is attached to this release as a pdf-file. It is also available at http://www.wartsilareports.com/en-US/2014/q4/frontpage/ and on the company website at www.wartsila.com.

FOURTH QUARTER HIGHLIGHTS
- Order intake increased 14% to EUR 1,522 million (1,334)
- Net sales increased 10% to EUR 1,549 million (1,403)
- Book-to-bill 0.98 (0.95)
- Operating result before non-recurring items EUR 196 million, or 12.7% of net sales (EUR 211 million
or 15.0%)
- Earnings per share EUR 0.60 (0.74)
- Cash flow from operating activities EUR 212 million (317)

HIGHLIGHTS OF THE REVIEW PERIOD JANUARY-DECEMBER 2014
- Order intake increased 5% to EUR 5,084 million (4,821)
- Net sales increased 4% to EUR 4,779 million (4,607)
- Book-to-bill 1.06 (1.05)
- Operating result before non-recurring items EUR 569 million, or 11.9% of net sales (EUR 557 million
or 12.1%)
- Earnings per share EUR 1.76 (1.98)
- Cash flow from operating activities EUR 452 million (578)
- Order book at the end of the period increased 5% to EUR 4,530 million (4,311)
- Dividend proposal 1.15 euro per share

BJÖRN ROSENGREN, PRESIDENT AND CEO
"Wärtsilä performed well in 2014, a year characterised by challenging market conditions. Net sales and profitability developed in line with our expectations. Net sales grew by 4% to EUR 4,779 million (4,607), largely due to a strong fourth quarter. Profitability reached 11.9% (12.1), with the development in Services and Ship Power performance and the restructuring measures introduced in January compensating for the effect of lower Power Plants' sales.

Although overall vessel contracting slowed during 2014, the robust ordering of gas carriers and the continued demand for specialised tonnage resulted in good ordering activity for Ship Power. In the power generation markets, activity among our customers increased significantly during the second half. Consequently, Power Plants' order intake picked up after a difficult first six months. I am especially pleased that we have achieved our ambition to grow the Services business. Supported by an all-time high fourth quarter, Services' full year net sales increased by 5%.