Wärtsilä - Financial Statement Release

WÄRTSILÄ'S FINANCIAL STATEMENTS BULLETIN JANUARY-DECEMBER 2012

Wärtsilä Corporation FINANCIAL STATEMENTS RELEASE 25 January 2013 at 8.30 local
time

NET SALES BACK TO GROWTH WITH STABLE PROFITABILITY

FOURTH QUARTER HIGHLIGHTS
-Order intake increased 9% to EUR 1,357 million (1,250)
-Net sales increased 24% to EUR 1,533 million (1,238)
-Book-to-bill 0.89 (1.01)
-Operating result (EBIT) EUR 186 million or 12.2% of net sales (EUR 145 million
or 11.7%)
-EBITA EUR 196 million or 12.8% of net sales (EUR 149 million or 12.1%)
-Earnings per share amounted to EUR 0.62 (0.45)
-Cash flow from operating activities EUR 187 million (-71)

HIGHLIGHTS OF THE REVIEW PERION JANUARY-DECEMBER 2012
-Order intake increased 9% to EUR 4,940 million (4,516)
-Net sales increased 12% to EUR 4,725 million (4,209)
-Book-to-bill 1.05 (1.07)
-Operating result (EBIT) EUR 515 million or 10.9% of net sales (EUR 469 million
or 11.1%)
-EBITA EUR 550 million or 11.6% of net sales (EUR 485 million or 11.5%)
-At the end of the period the order book increased 12% to EUR 4,492 million
(4,007)
-Earnings per share amounted to 1.72 euro (1.44)
-Cash flow from operating activities EUR 153 million (232)
-Dividend proposal 1.00 euro/share

BJÖRN ROSENGREN, PRESIDENT AND CEO:"I am pleased with our result for the year 2012, which was a year marked by
difficult conditions in the global economy. Supported by a very strong fourth
quarter, Wärtsilä's full year net sales grew by 12% with profitability at
10.9%. The order intake grew by 9%, with strong development in Ship Power
orders, especially in the offshore markets.
During 2012, we closed our largest ever acquisition with the purchase of
Hamworthy. This supports our growth strategy in the marine gas, offshore and
environmental solutions markets. Interest in marine gas solutions continued to
be strong and the orders received demonstrate our leading position in the dual-
fuel markets. As regards environmental solutions, market activity showed an
upward trend. In the growing offshore markets, our position is good, not least
in Brazil where we secured several important orders. Power Plants received two
of their largest orders ever, and Wärtsilä is today recognised as a serious
contender in the market for power plants above 500 MWs of capacity. I am also
very pleased that the Services net sales have returned to growth and that
important long-term service contracts are being secured in tough market
conditions.
Looking at 2013, the economic situation continues to be uncertain, however our
outlook for the markets remains stable. Supported by the solid order book, we
see some growth in net sales next year and believe we can maintain our
profitability on approximately the same level as in 2012."

PROSPECTS FOR 2013
Wärtsilä expects its net sales for 2013 to grow by 0-10% and its operational
profitability (EBIT% before non-recurring items) to be around 11%.

KEY FIGURES
MEUR                10-12/2012 10-12/2011 Change 1-12/2012 1-12/2011 Change
----------------------------------------------------------------------------
Order intake             1 357      1 250     9%     4 940     4 516     9%

Order book at the
end of the period                                    4 492     4 007    12%

Net sales                1 533      1 238    24%     4 725     4 209    12%

Operating result
(EBITA)(1)                 196        149    32%       550       485    13%

% of net sales           12.8%      12.1%            11.6%     11.5%

Operating result
(EBIT)(2)                  186        145    28%       515       469    10%

% of net sales           12.2%      11.7%            10.9%     11.1%Profit before taxes        161        131              452       429

Earnings/share, EUR       0.62       0.45             1.72      1.44

Cash flow from
operating
activities                 187        -71              153       232

Net interest-
bearing debt at the
end of the period                                      567        58

Gross capital
expenditure                                            513       187

Gearing                                               0.31      0.04
----------------------------------------------------------------------------
    EBITA is shown excluding non-recurring items of EUR 34 million (24) and
    intangible asset amortisation related to acquisitions of EUR 35 million (16)
  1 during the review period January-December 2012. During the fourth quarter,
    non-recurring items amounted to EUR 17 million (7) and intangible asset
    amortisation related to acquisitions to EUR 10 million (4).

  2 EBIT is shown excluding non-recurring items.


MARKET OUTLOOK
The general economic uncertainty and the slow global growth projections are
expected to continue to impact power generation markets. It is expected that the
overall market for natural gas and liquid fuel based power generation in 2013
will be similar to that of 2012. In 2013 ordering activity is expected to remain
centered on the emerging markets, which continue to invest in new power
generation capacity. In the OECD countries, there is still pent-up power sector
demand, mainly driven by CO(2) neutral generation and the ramp down of older,
mainly coal-based generation.

Our outlook for the shipping and shipbuilding market in 2013 is cautious,
although slightly better than in 2012. The contracting outlook remains
challenging for certain ship types, such as bulk carriers, due to the remaining
overcapacity. Overall, the contracting mix is expected to be in line with that
seen in 2012, favouring offshore and specialised vessel segments. Interesting
opportunities can be seen in environmental solutions and fuel efficient designs.

The overall service market outlook remains stable. The outlook for the Middle
East and Asia continues to be slightly more positive, while Southern Europe is
likely to present more challenging conditions in line with overall economic
development. An increase in the installed power plants base, compared to the
marine sector, provides a better outlook for services to the power segment. The
outlook for services to the marine sector remains, however, stable and is
supported by the continued positive outlook for the offshore sector.

BOARD OF DIRECTORS' DIVIDEND PROPOSAL
The Board of Directors proposes that a dividend of 1.00 euro per share be paid
for the financial year 2012. The parent company's distributable funds total
1,049,791,970.15 euro, which includes 252,563,755.88 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 12 March 2013. The
dividend payment date proposed by the Board is 19 March 2013. The Annual Report
2012, 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.

DISCLOSURE PROCEDURE
Wärtsilä Corporation follows the disclosure procedure enabled by Standard 5.2b
published by the Finnish Financial Supervision Authority. This stock exchange
release is a summary of Wärtsilä Corporation's Financial Statements Bulletin
January-December 2012. The complete report is attached to this release in pdf
format. The Financial Statements Bulletin January-December 2012 has been
published for the first time also in a web based report system at
www.wartsilareports.com. From now on the latest reports can always be found in
this system. The Financial Statements Bulletin is also available on Wärtsilä's
website at www.wartsila.com/investors.

ANALYST AND PRESS CONFERENCE
An analyst and press conference will be held on Friday 25 January 2012, 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 on the internet at the following address:
http://wcc.webeventservices.com/r.htm?e=564454&s=1&k=F8B497DF6C93F4AA6F8C841FCBD
564AB.
To participate in the teleconference please register at the following address;
http://emea.directeventreg.com/registration/88667448. You will receive dial-in
details by e-mail once you have registered. If problems occur, please press *0
for operator assistance. Please and use *6 to mute the sounds from 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:

Raimo Lind
Executive Vice President & CFO
Tel: +358 10 709 5640
raimo.lind@wartsila.com

Pauliina Tennilä
Director, Investor Relations
Tel: +358 40 570 5530
pauliina.tennila@wartsila.com

For press information, please contact:

Atte Palomäki
Group Vice President, Communications & Branding
Tel: +358 40 547 6390
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 maximises the environmental and economic performance of the
vessels and power plants of its customers. In 2012, Wärtsilä's net sales
totalled EUR 4.7 billion with approximately 18,900 employees. The company has
operations in nearly 170 locations in 70 countries around the world. Wärtsilä is
listed on the NASDAQ OMX Helsinki, Finland.
www.wartsila.com




[HUG#1673201]

Attachments:

Financial Statements Bulletin 2012.pdf