Wärtsilä - Financial Statement Release

WÄRTSILÄ'S FINANCIAL STATEMENTS BULLETIN JANUARY-DECEMBER 2015

Wärtsilä Corporation FINANCIAL STATEMENTS BULLETIN 27 January 2016 at 8.30 local
time

WÄRTSILÄ'S FINANCIAL STATEMENTS BULLETIN JANUARY-DECEMBER 2015

SOLID DEVELOPMENT DESPITE CHALLENGING MARKET CONDITIONS

This release is a summary of Wärtsilä's financial statements bulletin 2015. The
complete report is attached to this release as a pdf-file. It is also available
at http://www.wartsilareports.com/en-US/2015/q4/frontpage/ and on the company
website at www.wartsila.com.

FOURTH QUARTER HIGHLIGHTS
- Order intake decreased 8% to EUR 1,403 million (1,522)
- Net sales increased 3% to EUR 1,590 million (1,549)
- Book-to-bill 0.88 (0.98)
- EBITA EUR 224 million, or 14.1% of net sales (EUR 202 million or 13.1%)
- Operating result before non-recurring items EUR 215 million, or 13.5% of net
sales (EUR 196 million or 12.7%)
- Earnings per share 0.79 euro (0.60)
- Cash flow from operating activities EUR 176 million (212)

HIGHLIGHTS OF THE REVIEW PERIOD JANUARY-DECEMBER 2015
- Order intake decreased 3% to EUR 4,932 million (5,084)
- Net sales increased 5% to EUR 5,029 million (4,779)
- Book-to-bill 0.98 (1.06)
- EBITA EUR 643 million, or 12.8% of net sales (EUR 594 million or 12.4%)
- Operating result before non-recurring items EUR 612 million, or 12.2% of net
sales (EUR 569 million or 11.9%)
- Earnings per share 2.25 euro (1.76)
- Cash flow from operating activities EUR 255 million (452)
- Order book at the end of the period increased 8% to EUR 4,882 million (4,530)
- Dividend proposal 1.20 euro per share

WÄRTSILÄ'S PROSPECTS FOR 2016
Wärtsilä expects its net sales for 2016 to grow by 0-5% and its operational
profitability (EBIT% before non-recurring items) to be 12.5-13.0%.

JAAKKO ESKOLA, PRESIDENT AND CEO
"A solid fourth quarter and continued growth in service volumes supported us in
reaching our targets for the year 2015. Net sales grew by 5% and profitability
reached 12.2%. Furthermore, the quarterly order intake in the equipment
businesses improved sequentially towards year end. Given the challenging
operating environment we can be pleased with our performance.

Services' development was clearly the highlight of the year, with double digit
growth in both orders and sales. Our success was driven by a focused sales
approach and an enhanced value proposition, as well as by the increasing
willingness of our customers to invest in performance optimising services. We
will work actively to ensure the continued development of our offering in 2016.
Another key focus area will be cash flow development, which this year was
negatively affected by the timing of power plant deliveries.

Looking into 2016, we expect the market situation to remain similar to that seen
during the previous year. The favourable development of service activity is
expected to continue, while conditions in energy markets will remain challenging
and the demand for new vessels limited due to overcapacity and low oil prices.
Despite our cautious market outlook, we remain well positioned to benefit from
the trends of increasing demand for efficiency and changing energy needs.
Digitalisation will increasingly drive our business, as we utilise data
analytics to further optimise our customers' operations, and our own internal
processes and performance. Based on our solid order book and project pipeline, a
growing Services business and our focus on continuous improvement, we expect to
see some growth in sales and operating margins in the coming year."


KEY FIGURES
 MEUR                10-12/2015 10-12/2014 Change 1-12/2015 1-12/2014    Change
-------------------------------------------------------------------------------
 Order intake             1 403      1 522    -8%     4 932     5 084       -3%

 Order book at the
 end of the period                                    4 882     4 530        8%

 Net sales                1 590      1 549     3%     5 029     4 779        5%

 Operating result
 (EBITA)(1)                 224        202    11%       643       594        8%

 % of net sales            14.1       13.1             12.8      12.4

 Operating result
 (EBIT)(2)                  215        196    10%       612       569        8%

 % of net sales            13.5       12.7             12.2      11.9

 Profit before taxes        199        157              553       494

 Earnings/share, EUR       0.79       0.60             2.25      1.76

 Cash flow from
 operating
 activities                 176        212              255       452

 Net interest-
 bearing debt at the
 end of the period                                      372        94

 Gross capital
 expenditure                                            346        94

 Gearing                                               0.17      0.05
-------------------------------------------------------------------------------
 (1) EBITA is shown excluding non-recurring items and purchase price allocation
 amortisation. Wärtsilä recognised non-recurring items amounting to EUR 13
 million (30) in the fourth quarter, of which EUR 11 million related to the
 restructuring programme announced in July and EUR 3 million to acquisitions
 and other costs. Purchase price allocation amortisation amounted to EUR 9
 million (6). During the review period January-December 2015, non-recurring
 items amounted to EUR 25 million (47), of which EUR 19 million related to the
 restructuring programme and EUR 6 million to acquisitions and other costs.
 Purchase price allocation amortisation amounted to EUR 32 million (26).

 (2) EBIT is shown excluding non-recurring items.



MARKET OUTLOOK
The market for liquid and gas fuelled power generation is expected to remain
challenging as economic uncertainty continues. Despite slower economic growth in
the emerging markets, growth in electricity demand and the availability of
international funding for infrastructure projects will continue to support power
plant investments. In the OECD countries, low economic growth continues to limit
demand for new power plants, and in Europe the unfinished new electricity market
design is delaying investments. Low gas prices and positive developments in
electricity market designs are driving the demand in North America. The
megatrend towards distributed, flexible, gas-fired power generation continues to
gain ground globally. The increasing deployment of intermittent renewable power,
such as wind and solar, requires investments in flexible solutions to balance
the power systems. Electricity markets are being developed to reward the
necessary flexibility, thereby enabling new profitable investments. Wärtsilä's
systematic market development work in these markets will continue to bring
forward the benefits of Smart Power Generation.

The outlook for the shipping and shipbuilding markets remains challenging, with
oversupply limiting demand for newbuild vessels and low oil prices continuing to
impact investments in offshore exploration and development. Gas carrier
contracting is expected to remain at a normalised level due to the continued
demand for LPG in Asia. The outlook for the cruise and ferry segment remains
positive thanks to economic recovery in Europe and the United States, as well as
increased interest for cruises in Asia. The importance of fuel efficiency and
environmental regulations are clearly visible. Increased environmental awareness
and the regulatory environment is driving interest in gas as a marine fuel in
the broader marine markets.

The service market outlook is positive with growth opportunities in selected
regions and segments. An increase in the installed base of medium-speed engines
and propulsion equipment, as well as the shift to gas based technology, offsets
the slower service demand for older installations and uncertainty regarding
short-term demand development in the merchant marine segment. The favourable
impact of low oil prices on operating costs is expected to continue to support
the demand for service work on installations operating on oil based fuels. In
the offshore segment, the growth in the installed base during recent years is
expected to partially compensate for the challenging outlook in certain regions.
The service outlook for gas fuelled vessels remains favourable. Service demand
in the power plant segment continues to be good with an especially positive
outlook in the Middle East and Africa. Customers in both the marine and power
plant markets continue to show healthy interest in long-term service agreements.


BOARD OF DIRECTORS' DIVIDEND PROPOSAL
The Board of Directors proposes that a dividend of 1.20 euro per share be paid
for the financial year 2015. The parent company's distributable funds total
1,052,581,243.14 euro, which includes 276,747,007.02 euro in net profit for the
year. There are 197,241,130 shares with dividend rights. The dividend will be
paid to shareholders who are registered in the list of shareholders maintained
by Euroclear Finland Ltd on the record date, which is 7 March 2016. The dividend
payment date proposed by the Board is 14 March 2016. The Annual Report 2015,
including the financial review and the review by the Board of Directors, will be
available on the company website www.wartsila.com and at www.wartsilareports.com
during week 6.

ANALYST AND PRESS CONFERENCE
An analyst and press conference will be held today, Wednesday 27 January 2016,
at 10.00 a.m. Finnish time (8.00 a.m. UK time), at the Wärtsilä headquarters in
Helsinki, Finland. The combined web- and teleconference will be held in English
and can be viewed at the following address:
http://wcc.webeventservices.com/r.htm?e=1112445&s=1&k=E0259297200D6F02A3BE049B70
1BF5F0.

To participate in the teleconference please register at the following address:
http://emea.directeventreg.com/registration/15439126. You will receive dial-in
details by e-mail once you have registered. If problems occur, please press *0
for operator assistance. Please use *6 to mute your phone during the
teleconference and the same code to unmute.

An on-demand version of the webcast will be available on the company website
later the same day.

For further information, please contact:

Marco Wirén
Executive Vice President & CFO
Tel: +358 10 709 5640
marco.wiren@wartsila.com

Natalia Valtasaari
Director, Investor & Media Relations
Tel: +358 40 187 7809
natalia.valtasaari@wartsila.com

For press information, please contact:

Atte Palomäki
Group Vice President, Communications & Branding
Tel: +358 10 709 5599
atte.palomaki@wartsila.com

Wärtsilä in brief:
Wärtsilä is a global leader in complete lifecycle power solutions for the marine
and energy markets. By emphasising technological innovation and total
efficiency, Wärtsilä maximizes the environmental and economic performance of the
vessels and power plants of its customers. In 2015, Wärtsilä's net sales
totalled EUR 5.0 billion with approximately 18,900 employees. The company has
operations in more than 200 locations in nearly 70 countries around the world.
Wärtsilä is listed on the Nasdaq Helsinki. www.wartsila.com


[HUG#1981347]

Attachments:

Financial Statements Bulletin 2015.pdf