Vaisala Oyj Class A · OMXHEX:VAIAS

Vaisala Oyj Class A — Q3 2017 Earnings Presentation

32 slides from Vaisala Oyj Class A's earnings presentation, Oct 23, 2017

  1. Slide 1: Interim Report January–September 2017

    Interim Report January–September 2017 Vaisala Corporation October 23, 2017

  2. Slide 2: Third Quarter 2017

    Third Quarter 2017 2017-10-23 2 Interim Report January-September 2017

  3. Slide 3: Third quarter 2017 highlights

    Third quarter 2017 highlights  Orders received EUR 100.1 (76.6) million, +31%  Order book EUR 145.0 (114.8) million, +26%  Net sales EUR 87.1 (81.8) million, +6%  Gross margin 52.8% (53.9%)  Operating result* EUR 14.7 (5.3) million, 16.9% (6.5%) of net sales  Earnings per share EUR 0.59 (0.21)

  4. Slide 4: Vaisala Q3 orders received increased 31%

    Vaisala Q3 orders received increased 31%  Orders received EUR 100.1 (76.6) million, +31% MEUR  The increase was strong in all geographical 120 100.1 areas 100  Weather and Environment Business Area 76.6 27.6 80 26.5  EUR 72.5 (48.5) million, +50% 26.8 29.5 28.2 60 28.1  The increase was strong

  5. Slide 5: Vaisala order book increased 26%

    Vaisala order book increased 26%  Order book EUR 145.0 (114.8) million, +26% MEUR 160 145.0  The order book increased in all geographical areas 10.7 114.8 10.0 12.2  EUR 66.1 (53.7) million of the order book is 120 6.8 8.7 8.3 8.6 scheduled to be delivered in 2017  Weather and Environment Busine

  6. Slide 6: Vaisala Q3 project deliveries increased 51% y-o-y

    Vaisala Q3 project deliveries increased 51% y-o-y % of net sales Q3/2017 MEUR 100 87.1 11% 81.8 11.3 (14%) 80 9.8 11.4 11.3 23.7 11.3 21.7 11.7 14.4 11.6 60 17.0 13.5 25% 9.9 8.5 (18%) 40 64% 58.0 56.0 55.6 47.1 47.3 48.2 50.1 (68%) 20 0 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Products Projects Se

  7. Slide 7: Balanced geographical split of net sales in Q3

    Balanced geographical split of net sales in Q3 % of net sales in Q3/2017 EUR million Q3/2017 Q3/2016 Change % 30% EMEA 29.6 23.1 28 34% (29%) (28%) Americas 31.7 35.4 -10 APAC 25.8 23.3 11 Total 87.1 81.8 6 (43%) 36% EMEA Americas APAC Page 7 © Vaisala 2017-10-23 Interim Report January-September 201

  8. Slide 8: Vaisala Q3 operating result 16.9% of net sales

    Vaisala Q3 operating result 16.9% of net sales MEUR Q3/2017 Q3/2016 100 93.0 Orders received, EUR million 100.1 76.6 87.1 81.8 80 75.6 74.8 Net sales, EUR million 87.1 81.8 68.7 68.4 60 Gross margin, % 52.8 53.9 40 Operating expenses, EUR million 30.5 40.1 20 14.6 14.7 Operating result, EUR million

  9. Slide 9: Weather and Environment

    Weather and Environment

  10. Slide 10: Weather and Environment Q3 net sales increased by 6%

    Weather and Environment Q3 net sales increased by 6% % of net sales in Q3/2017 MEUR 80 12% (16%) 8.7 58.3 60 53.4 6.9 8.7 8.6 23.7 8.4 40 8.9 14.4 21.7 51% 17.0 8.7 13.5 9.9 37% (57%) 8.5 (27%) 20 30.4 34.3 25.8 27.4 29.7 25.0 23.0 0 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Products Projects Servic

  11. Slide 11: Weather and Environment Q3 operating result 12.3% of net sales

    Weather and Environment Q3 operating result 12.3% of net sales MEUR Q3/2017 Q3/2016 66.7 70 Orders received, EUR million 72.5 48.5 58.3 53.4 50.6 49.3 Net sales, EUR million 58.3 53.4 50 44.7 40.3 Gross margin, % 47.1 50.7 30 Operating expenses, EUR million 20.4 30.3 Operating result, EUR million 7.

  12. Slide 12: Industrial Measurements

    Industrial Measurements

  13. Slide 13: Industrial Measurements Q3 net sales increased 2%

    Industrial Measurements Q3 net sales increased 2% % of net sales in Q3/2017 MEUR 35 10% 30 28.4 28.8 (10%) 2.7 2.9 2.9 25 2.6 2.9 2.7 2.7 20 15 25.7 25.2 25.9 22.3 23.7 22.6 10 21.3 90% 5 (90%) 0 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Products Services Products Services Page 13 © Vaisala 2017-10-

  14. Slide 14: Industrial Measurements Q3 operating result 29% of net sales

    Industrial Measurements Q3 operating result 29% of net sales MEUR Q3/2017 Q3/2016 40 Orders received, EUR million 27.6 28.1 28.4 28.1 28.8 Net sales, EUR million 28.8 28.4 30 26.4 25.0 25.5 24.0 Gross margin, % 64.2 60.3 20 Operating expenses, EUR million 10.1 9.7 10 7.4 8.3 Operating result, EUR mi

  15. Slide 15: January–September 2017

    January–September 2017 2017-10-23 15 Interim Report January-September 2017

  16. Slide 16: January–September 2017 highlights

    January–September 2017 highlights  Orders received EUR 262.9 (218.3) million, +20%  Net sales EUR 230.3 (226.0) million, +2%  Gross margin 52.2% (51.4%)  Operating result EUR 22.4 (7.7*) million  Earnings per share EUR 0.86 (0.26)  Cash flow from operating activities EUR 26.2 (17.1) million 

  17. Slide 17: Strong investment in R&D continued

    Strong investment in R&D continued  R&D expenses EUR 29.2 (27.9) million or 12.7% MEUR (12.3%) of net sales 40 38.0  Weather and Environment 13.6% (13.2%) of net 11.5 29.2 sales 30 8.2 9.4  Industrial Measurements 11.0% (10.6%) of net 6.5 9.0 sales 20 25.7 26.7 26.5 10 22.4 20.2 0 2013 2014 2015

  18. Slide 18: Cash flow from operating activities increased 53% y-o-y

    Cash flow from operating activities increased 53% y-o-y  Cash flow from operations increased to EUR 26.2 MEUR (17.1) million as a result of increased EBITDA and 50 positive working capital development  Cash and cash equivalents EUR 72.3 (49.9) 40 million, +45%  Capital expenditure EUR 6.6 (6.2) m

  19. Slide 19: Market and Business Outlook

    Market and Business Outlook 2017-10-23 19 Interim Report January-September 2017

  20. Slide 20: Market Outlook 2017

    Market Outlook 2017  Vaisala is expecting moderate improvement for weather observation market compared to previous year. Compared to previous year, growth in new orders and deliveries is expected in particular in Europe and Asia Pacific. Growth is driven by meteorology customer segment. Market deve

  21. Slide 21: Business Outlook 2017 unchanged

    Business Outlook 2017 unchanged  Vaisala estimates its full year 2017 net sales to be in the range of EUR 310–340 million and its operating result (EBIT) to be in the range of EUR 32–42 million. Net sales Operating result MEUR MEUR 320 40 318.5 319.1 32.8* 300 30 299.7 30.2 29.6 293.3 26.4 280 20 2

  22. Slide 22: Questions Welcome!

    = Questions Welcome!

  23. Slide 23: Appendix January–September 2017 financials

    Appendix January–September 2017 financials

  24. Slide 24: Vaisala January–September orders received increased 20%

    Vaisala January–September orders received increased 20%  Orders received EUR 262.9 (218.3) million, +20% MEUR  The increase came from all geographical areas 350  Weather and Environment Business Area 300 94.4 262.9  EUR 177.6 (139.5) million, +27% 250 79.8 105.3 74.6 85.3  The increase came fro

  25. Slide 25: January–September sales mix unchanged

    January–September sales mix unchanged % of net sales in 1-9/2017 EUR million 1-9/2017 1-9/2016 Change % 14% Products 153.9 150.3 2 (15%) Projects 43.7 41.4 6 19% Services 32.6 34.3 -5 (18%) Net sales, total 230.3 226.0 2 67% (66%) At comparable 213.4 226.0 2 exchange rates Products Projects Services

  26. Slide 26: Geographical split of Vaisala January–September net sales unchanged

    Geographical split of Vaisala January– September net sales unchanged % of net sales in 1-9/2017 EUR million 1-9/2017 1-9/2016 Change % 29% 31% EMEA 71.5 67.7 6 (28%) (30%) Americas 91.1 94.8 -4 APAC 67.7 63.5 7 (42%) Total 230.3 226.0 2 40% EMEA Americas APAC Page 26 © Vaisala 2017-10-23 Interim Rep

  27. Slide 27: January–September operating result 9.7% of net sales

    January–September operating result 9.7% of net sales  Operating result EUR 22.4 (7.7) million or 9.7% MEUR (3.4%) of net sales 35  Comparison period included EUR 10.5 30 million write-down of intangible assets 10.3 9.3 25  Operating expenses EUR 97.8 (107.3) million 8.8 20 9.7 7.0 15 6.6 10 5 30.

  28. Slide 28: Weather and Environment January–September net sales flat

    Weather and Environment January– September net sales flat % of net sales in 1-9/2017 EUR million 1-9/2017 1-9/2016 Change % 16% Products 80.2 81.2 -1 (18%) Projects 43.7 41.3 6 Services 24.0 26.2 -9 54% 30% Net sales, total 147.9 148.7 -1 (55%) (28%) At comparable 148.4 148.7 0 exchange rates Produc

  29. Slide 29: Weather and Environment January–September operating result 2.8% of net sales

    Weather and Environment January–September operating result 2.8% of net sales MEUR 70 66.7 1-9/2017 1-9/2016 58.3 Orders received, EUR million 177.6 139.5 53.4 50.6 49.3 50 44.7 Net sales, EUR million 147.9 148.7 40.3 Gross margin, % 46.4 46.9 30 Operating expenses, EUR million 64.7 75.8 9.5 10 7.1 O

  30. Slide 30: Industrial Measurements January–September net sales increased 7%

    Industrial Measurements January– September net sales increased 7% % of net sales in 1-9/2017 EUR million 1-9/2017 1-9/2016 Change % 11% (10%) Products 73.7 69.3 6 Services 8.7 8.1 7 Net sales, total 82.4 77.3 7 At comparable 89% 83.0 77.3 7 exchange rates (90%) Products Services Page 30 © Vaisala 20

  31. Slide 31: Industrial Measurements January–September operating result 22.4% of net sales

    Industrial Measurements January–September operating result 22.4% of net sales MEUR 1-9/2017 1-9/2016 40 Orders received, EUR million 85.3 78.8 28.4 28.1 28.8 Net sales, EUR million 82.4 77.3 30 26.4 25.0 25.5 24.0 Gross margin, % 62.8 60.4 20 Operating expenses, EUR million 33.3 30.0 10 7.4 8.3 Oper

  32. Slide 32: Observations for a Better World

    Observations for a Better World Page 32 © Vaisala 2017-10-23 Interim Report January-September 2017

Vaisala — Q3 2017 Earnings Presentation on 6ix