Investor Presentaiton

Chinese Economy and Market Update . • • China economy further slowed down with headwinds both externally and internally, despite 7% GDP expansion in H1. Export fell by 6.1% yoy in Aug and imports shrank by 13.6%. However exports to US and ASEAN increased by 6.1% and 5.6% respectively. PMI slipped to 49.7 in Aug from 50 for July, the lowest in 36 months since 8/2012. However, sub PMI for high tech manufacturing (52.2) and consumption sector (54.6) remain in expansion Medium and long term still look positive, as service sector now accounts for 50% of GDP and private consumption contributes more than 60% of GDP growth. Slowdown is necessary to make structural transition from export/investment to more sustainable consumption/service mode. Government has sufficient tools to stimulate economy to avoid hard landing. China shipbuilding industry facing huge challenges. First 8 months in 2015, new contract order dropped 68.3% yoy to 15 million DWT and order book decreased 12.1% to 135 million DWT. However total completion increased by 14.6% to 25.31 million DWT. In terms of order book, China still holds the largest market share (39.7 million CGT), followed by Korea (31.8 million CGT) and Japan (19.77 million CGT). Main challenges from weak demand, overcapacity, difficult for private yards to get financing, low oil price, etc. Power Market has great potential for gas and renewable energy. China's installed gas- fired power capacity reached 55.67 GW in 2014, accounting for 4.1% of total power mix, increased from 3.4% in 2013. Gas consumption in H1 increased bit slow by 3.3%, but the continued decline of imported gas price could boost consumption. 13th five year plan will focus on further expansion of renewable energy. By 2020, wind power would be tripled from current 75 GW to 200 GW and solar would jump from 15 to 100 GW. © Wärtsilä Investors visit Sep. 23 2015 WÄRTSILÄ

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