Interim Report
January–December 2014
Vaisala Corporation
February 12, 2015
Overview of Q4/2014
 Orders received EUR 87.1 (82.7) million, +5%
 Order book EUR 129.2 (122.0) million, +6%
 Net sales EUR 95.7 (80.5) million, +19%
 Gross margin 52.5% (48.7%)
 Operating result EUR 14.9 (3.1) million, +388%
 Earnings per share EUR 0.73 (0.10)
 Cash and cash equivalents EUR 47.6 (45.8) million
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© Vaisala
2015-02-12
Financial Statements 2014
Orders, Net Sales and Order Book (MEUR)
150.0
120.0
90.0
60.0
30.0
0.0
Q1
2012
Orders
55.7
Net sales
58.8
Order Book 131.1
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2015-02-12
Q2
2012
68.6
75.3
124.5
Q3
2012
74.3
69.5
129.2
Q4
2012
66.1
89.7
105.6
Q1
2013
58.7
65.6
98.6
Q2
2013
65.6
65.2
99.0
Financial Statements 2014
Q3
2013
76.0
61.9
115.1
Q4
2013
82.7
80.5
122.0
Q1
2014
68.6
57.5
144.7
Q2
2014
70.6
68.7
146.8
Q3
2014
68.8
77.9
137.7
Q4
2014
87.1
95.7
129.2
Net Sales by Business Area (MEUR)
100.0
90.0
80.0
18.0
70.0
20.8
18.1
18.1
17.7
40.0
18.9
19.0
56.8
41.0
48.9
18.3
73.3
71.3
30.0
20.0
20.6
18.5
60.0
50.0
22.3
18.3
62.4
47.5
47.1
42.9
49.8
57.3
39.1
10.0
0.0
Q1/2012 Q2/2012 Q3/2012 Q4/2012 Q1/2013 Q2/2013 Q3/2013 Q4/2013 Q1/2014 Q2/2014 Q3/2014 Q4/2014
Weather
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2015-02-12
Controlled Environment
Financial Statements 2014
Net Sales by Business Type (MEUR)
10-12/2014
10-12/2013
2014
2013
73.3
62.4
219.6
200.0
Products
30.3
27.4
92.1
97.3
Delivery projects
29.8
24.3
83.8
70.0
Services
13.3
10.7
43.7
32.7
22.3
18.0
80.2
73.2
Products
19.8
15.5
70.7
64.2
Services
2.6
2.5
9.4
9.0
0.0
0.0
0.0
0.1
95.7
80.5
299.7
273.2
Weather
Controlled Environment
Sales, elimination and others
TOTAL VAISALA NET SALES
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© Vaisala
2015-02-12
Financial Statements 2014
Net Sales by Regions
Americas
EMEA
APAC
Q4/2014
36.2
35.8
23.7
Change
Q4/2014
Q4/2013
+7%
+24%
+33%
Share of net sales
38%
37%
25%
112.1
111.8
75.9
Change
2014
2013
+4%
+13%
+14%
Share of net sales
37%
37%
25%
2014
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© Vaisala
2015-02-12
Financial Statements 2014
MEUR
MEUR
Foreign Exchange Rate Effect on
Net Sales (MEUR)
 Foreign exchange rate effect mainly from USD/EUR
 Comparable exchange rates: translation impact eliminated
Q4/2014
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Q4/2013
Q4/2014
Reported
Reported
At comparable
exchange rates
Currency
effect
Weather
73.3
62.4
70.9
+2.4
Controlled Environment
22.3
18.0
21.6
+0.8
Total
95.7
80.5
92.5
+3.2
© Vaisala
2015-02-12
Financial Statements 2014
Performance by Quarter
105
30%
95
85
20%
75
65
10%
55
45
0%
35
25
-10%
Q1/13
Q2/13
Q3/13
Q4/13
Q1/14
Net sales
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2015-02-12
Q2/14
Q3/14
Operating result %
Financial Statements 2014
Q4/14
Performance by Quarter
EUR million
Q1/13
Q2/13
Q3/13
Q4/13
Q1/14
Q2/14
Q3/14
Q4/14
Net sales
65.6
65.2
61.9
80.5
57.5
68.7
77.9
95.7
Costs of sales
33.6
32.1
31.9
41.3
29.8
34.5
36.8
45.5
Gross profit
32.0
33.1
30.0
39.2
27.6
34.2
41.1
50.2
49%
51%
48%
49%
48%
50%
53%
52%
20.8
21.0
19.0
23.9
22.5
23.7
20.8
26.1
Research and development costs
7.6
7.0
6.2
8.0
8.2
8.7
7.7
9.4
Other operating income and expense
1.6
0.0
0.1
-4.3
0.0
0.3
0.0
0.1
Operating result
5.1
5.1
4.9
3.1
-3.2
2.1
12.6
14.9
8%
8%
8%
4%
-6%
3%
16%
16%
Gross margin %
Sales, marketing and administrative costs
Operating result %
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© Vaisala
2015-02-12
Financial Statements 2014
Weather in Q4/2014
 Orders received EUR 65.4 (64.1) million, +2%
 Growth came from all customer groups except Meteorology and New
Weather Markets
 Order book EUR 123.7 (116.2) million, +7%
 Net sales EUR 73.3 (62.4) million, +17%
 At comparable exchange rates net sales would have increased by 14%
 Growth came from all customer groups except Airports
 Net sales increased in all geographical areas except in Americas
 Operating result EUR 12.7 (7.6) million, +66%
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© Vaisala
2015-02-12
Financial Statements 2014
Controlled Environment in Q4/2014
 Orders received EUR 21.7 (18.6) million, +17%
 Growth came from both customer groups
 Order book EUR 5.5 (5.8) million, -5%
 Net sales EUR 22.3 (18.0) million, +24%
 At comparable exchange rates net sales would have increased by 20%
 Growth came from both customer groups
 Net sales improved in all geographical areas
 Operating result EUR 3.9 (-3.5) million, +212%
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Financial Statements 2014
R&D Costs
36
 R&D expenses were EUR
34.0 (28.9) million, 11.3%
(10.6%) of net sales
32
28
 The increase was mainly due to
R&D expenses of the acquired
companies, as well as
investments in new offering
development and renewing
instrument portfolio
24
20
16
12
8
4
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
R&D costs (MEUR)
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© Vaisala
2015-02-12
% of net sales
Financial Statements 2014
 Weather 11.7% (11.2%) of
net sales
 Controlled Environment
10.3% (8.9%) of net sales
2015-02-12
13
Overview 1-12/2014
Financial Statements 2014
Overview of 1–12/2014
 Orders received EUR 295.0 (282.9) million, +4%
 Net sales EUR 299.7 (273.2) million, +10%
 Gross margin 51.1% (49.2%)
 Operating result EUR 26.4 (18.1) million, +46%
 Earning per share EUR 1.30 (0.60)
 Cash flow from operating activities EUR 23.8 (28.2) million
 Dividend paid EUR 16.2 (16.2) million
 Vaisala’s Board of Directors is proposing a dividend of EUR 0.90 per share
(0.90)
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© Vaisala
2015-02-12
Financial Statements 2014
Foreign Exchange Rate Effect on
Net Sales (MEUR)
 Foreign exchange rate effect mainly from JPY/EUR and AUD/EUR
 Comparable exchange rates: translation impact eliminated
2014
Weather
Controlled Environment
Total
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© Vaisala
2015-02-12
2013
2014
Reported
Reported
At comparable
exchange rates
Currency
effect
219.6
200.0
219.4
+0.2
80.2
73.2
81.4
-1.2
299.7
273.2
300.7
-1.0
Financial Statements 2014
Weather in 1-12/2014
 Orders received EUR 215.2 (208.3) million, +3%
 Orders increased in all other customer groups except in Meteorology
 Order book EUR 123.7 (116.2) million, +7%
 Net sales EUR 219.6 (200.0) million, +10%
 At comparable exchange rates net sales would have increased by 10%
 Growth came from all customer groups except Airports
 Net sales improved in project and services businesses and in all geographical
areas
 Operating result EUR 17.0 (14.5) million, +17%
 The increase was due to improved net sales and gross margins
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© Vaisala
2015-02-12
Financial Statements 2014
Controlled Environment in 1-12/2014
 Orders received EUR 79.8 (74.6) million, +7%
 Orders received increased in both customer groups
 Order book EUR 5.5 (5.8) million, -5%
 Net sales EUR 80.2 (73.2) million, +9%
 At comparable exchange rates net sales would have increased by 11%
 Net sales increased in both customer groups and in all geographical
areas
 Operating result EUR 12.1 (4.0) million, +201%
 The increase was mainly due to improved net sales and gross margins
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2015-02-12
Financial Statements 2014
Key Ratios in 2014
2014
2013
Earnings per share, EUR
1.30
0.60
Equity per share, EUR
9.41
8.80
Cash flow from operating activities per share, EUR
1.32
1.55
Solvency ratio
70.6%
71.6%
Return on equity
14.3%
6.3%
7.9
7.1
1,613
1,563
Capital expenditure, MEUR
Personnel at the end of period
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© Vaisala
2015-02-12
Financial Statements 2014
2015-02-12
19
Market and Business Outlook
Financial Statements 2014
Market Outlook 2015
 The market conditions that Vaisala faces in different markets vary significantly.
 Competition in weather observation market is expected to continue
intensifying.
 The market for industrial measurement and life science solutions is expected
to remain favorable in Americas and other markets to continue flat.
 The Russian economy is expected to continue weakening.
 The Chinese market is expected to be somewhat slow during 2015.
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© Vaisala
2015-02-12
Financial Statements 2014
Business Outlook 2015
 Vaisala estimates its full year 2015 net sales to be in the range of
EUR 285–315 million and the operating result (EBIT) in the range of
EUR 20–30 million.
Net sales
Operating result
300.0
35
299.7
293.3
273.6
250.0
30
30.2
25
273.2
26.4
20
253.2
15
10
18.1
16.1
11.8
5
200.0
0
2010
2011
2012
2013
2014
2010
2011
2012
2013*
2014
* Impairment charge of EUR 4.3 million
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© Vaisala
2015-02-12
Financial Statements 2014
Restructuring for Growth
Key Objectives for Planned Changes
Objective
Planned action
 Improved ability to execute growth
strategies.
 Optimize segment and regional structure to
best serve the needs of each business
area.
 Stronger alignment between business and
functions, including services creation and
delivery.
 Integrate Service into relevant BAs
business management.
 Improved operational efficiency enabling
long-term investments in growth.
 Simplify structure, reduce coordination
points, enhance decision making and
clarify roles.
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© Vaisala
2015-02-12
Financial Statements 2014
Planned Vaisala Structure
Weather
Controlled Environment
Meteorology
Regional sales
AMER
Sales
Transportation
Regional sales
EMEA
Sales
Energy
Regional sales
APAC
Sales
Project and Customer Services
Information Services
Calibration and Repair Services
WEA Offering
CEN Offering
Operations
The organizational changes
are planned to be effective
as of April 1, 2015.
Support units
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© Vaisala
2015-02-12
 Better support for
future growth of
business areas
 Improved
efficiency
 Simplified
operating model
Financial Statements 2014
Vaisala Values
 Customer focus
We strive for deep understanding of our customers'
needs and aim at meeting them in everything we do.​
 Innovation and Renewal
We embrace pioneering innovation and drive change
through continuous improvement and learning.
 Strong Together
We excel by sharing, learning and working together
with each other and our stakeholders.
 Integrity
We are honest, respectful and reliable. We promote
sustainable and ethical behavior.​
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© Vaisala
2015-02-12
Financial Statements 2014
Next Report
 January-March Interim Report
 Vaisala will publish its January–March Interim Report on Tuesday,
April 28, 2015 at approximately 2:00 p.m. Finnish time
 www.vaisala.com/investors
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2015-02-12
Financial Statements 2014
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