Vaisala Oyj Class A · OMXHEX:VAIAS

Vaisala Oyj Class A — Investor Day (May 2014)

42 slides from Vaisala Oyj Class A's investor day presentation, May 26, 2014

  1. Slide 1: Vaisala Capital Markets Day

    Vaisala Capital Markets Day May 26, 2014 Agenda 12:00 Welcome and introductions 12:15 Weather 12:45 Renewable Energy 13:15 Break 13:30 Controlled Environment 14:15 Vaisala’s strategy and long-term financial targets 14:45 Questions and answers 15:00 Break 15:15 Factory tour 16:30 Light snack Page 2 ©

  2. Slide 2: Vaisala is a global leader in environmental and industrial measurement

    Vaisala Vaisala is a global leader in environmental and industrial measurement. We serve customers in weather and controlled environment markets. Page 3 © Vaisala 2014-05-26 Capital Markets Day Market Segments We Serve Page 4 © Vaisala 2014-05-26 Capital Markets Day 2

  3. Slide 3: Weather

    Weather Kai Konola Executive Vice President Contents Weather Opportunity Driving Growth through Business Model Evolution Based Strategy Conclusion Page 6 © Vaisala 2014-05-26 Capital Markets Day 3

  4. Slide 4: Weather Business Area - Overview; Weather Markets in 2014

    Weather Business Area - Overview Meteorology Roads & Rail 200M€ net sales 14.5.M€ profit (2013) 1.Customers’ primary interest is the safety and protection of lives and property, through effective operations and Airports decision-making support under any weather Energy conditions. 2.Our Brand is reco

  5. Slide 5: Opportunity Drivers for Vaisala in Weather

    Opportunity Drivers for Vaisala in Weather From isolated From  Increased Operational measurement delivering Value to customers points to “Atoms” to Networked deliver Bits objects  Emerging Decision support service From Data business opportunity collected to Information  Hosted services driving be

  6. Slide 6: Broad & Reliable Weather Offering

    Focus on Creating Increased Operational Value for Our Customers Reliable weather technology provider Products + Basic Services Page 11 © Vaisala 2014-05-26 Capital Markets Day Broad & Reliable Weather Offering High mix, low volume business Page 12 © Vaisala 2014-05-26 Capital Markets Day 6

  7. Slide 7: Unique Capability to Deliver Projects

    Focus on Creating Increased Operational Value for Our Customers One stop shop project house Installation and Integration Reliable weather technology provider Products + Basic Services Page 13 © Vaisala 2014-05-26 Capital Markets Day Unique Capability to Deliver Projects Everywhere on the Globe Norwa

  8. Slide 8: But – how much can you grow…?

    Bringing Network Manager for Efficient Operations & Maintenance Page 15 © Vaisala 2014-05-26 Capital Markets Day But – how much can you grow…? One stop shop project house Installation and Integration Reliable weather technology provider Products + Basic Services Page 16 © Vaisala 2014-05-26 Capital

  9. Slide 9: Unique Set of Capabilities that Drive Operational Value

    We have Unique Set of Capabilities that Drive Creation of Operational Value for Customers Decision support Unique models Observation data Page 17 © Vaisala 2014-05-26 Capital Markets Day What’s on his mind? Stephen Smyth, Engineering Inspector| Network Page 18 © Vaisala 2014-05-26 Capital Markets Da

  10. Slide 10: Need for Total Road Weather Information Management

    Page 19 © Vaisala 2014-05-26 Capital Markets Day Need for Total Road Weather Information Management Observations Data management Applications Services Page 20 © Vaisala 2014-05-26 Capital Markets Day 10

  11. Slide 11: Offer New Value to Road Customers

    Offer New Value to Road Customers Page 21 © Vaisala 2014-05-26 Capital Markets Day … Pulling through “The Old Value” Page 22 © Vaisala 2014-05-26 Capital Markets Day 11

  12. Slide 12: Roads Tweet Innovation; Increasing Operational Value

    And Bringing Opportunity for New Innovation - Roads ”Tweet”  Customers can easily authorize RoadDSS Manager to send tweets to a single twitter account  No need to separately log-in to Twitter  Enables customers to be more transparent to the road users by sharing information such as treatment plan

  13. Slide 13: Build New Business around Information Services

    Build New Business around Information Services Renewable Airport winter energy operations maintenance and Aircraft de-icing optimization, Lightning warnings Roads winter maintenance optimization Long and short term forecasts Assessment Consulting AviCast CheckTime RoadDSS Manager ALIS Traffic Weathe

  14. Slide 14: AviCast Supports Efficient Airport Operations

    AviCast Supports Efficient Airport Operations Page 27 © Vaisala 2014-05-26 Capital Markets Day Build New Business around Information Services Renewable Airport winter energy operations maintenance and Aircraft de-icing optimization, Lightning warnings Roads winter maintenance optimization Long and s

  15. Slide 15: Summary: Components of Weather Business Growth

    Contents Weather Opportunity Driving Growth through Business Model Evolution Based Strategy Conclusion Page 29 © Vaisala 2014-05-26 Capital Markets Day Summary: Components of Weather Business Growth  Deliver increased Operational value to customers with Information services  Continue delivering pr

  16. Slide 16: Growing in the Weather & Energy Connection

    Questions? Thank You Page 31 © Vaisala 2014-05-26 Capital Markets Day Growing in the Weather  Energy Connection Richard Pyle Segment Director, Energy 16

  17. Slide 17: Weather and Energy are Tightly Connected

    Contents Vaisala in Energy Business Market Overview Strategic Objectives Expected Value Page 33 © Vaisala 2014-05-26 Capital Markets Day Weather and Energy are Tightly Connected to Each Other Page 34 © Vaisala 2014-05-26 Capital Markets Day 17

  18. Slide 18: Current Focus and Offering

    Weather and Energy are Tightly Connected to Each Other WEATHER  ENERGY CONNECTION SEVERE TEMPE- CLIMATE WIND SOLAR HYDRO WEATHER RATURE IMPACT ENERGY ENERGY ENERGY IMPACT ON IMPACT ON ENERGY SYSTEMS ON DEMAND PORTFOLIO ON-SHORE UTILITIES INDUSTRIAL OFF-SHORE COMMERCIAL RESIDENTIAL Page 35 © Vaisala

  19. Slide 19: Wind and Solar Energy Production

    Wind and Solar Energy Production - Transition towards market driven dynamics ongoing  Fastest growth where cost is at/near parity with traditional energy sources  Renewable energy incentives/programs accelerate build activity  Resource availability defines the long-term potential Wind: global mea

  20. Slide 20: Growth in Wind, Positioning in Solar

    Growth in Wind, Positioning in Solar Market Wind – Priority for growth in 2014-18 Solar – Establishing strategic market position  Prudent risk assessments and forecasts  Database-assessment often ’good enough’ bring major value across energy chain  Sophistication level is increasing  Local obser

  21. Slide 21: Strategic Initiatives

    60% of New Build in China, USA and India  400 GW of new capacity Top countries in the expected new wind capacity build expected until 2020 2014-2020 (GW) Source: MAKE consulting  China’s build China is equal to the following 87 U.S. India 11 countries Germany 167 United Kingdom 6 Brazil 6 7 Canada

  22. Slide 22: Management of Risk

    DEVELOP EXPAND IN LEVERAGE Management of Risk NEW SERVICES FOCUSED COUNTRIES GLOBAL CHANNEL – The top need for all energy players involved with the renewables STRENGTHEN BRAND RENEWABLE RENEWABLE RENEWABLE RENEWABLE ENERGY TECHNOLOGY PROJECT ASSET ENERGY MARKETING SUPPLY BUILD OPERATION INTEGRATION

  23. Slide 23: Resource Assessment; Forecasting

    Resource Assessment Page 45 © Vaisala 2014-05-26 Capital Markets Day Forecasting Page 46 © Vaisala 2014-05-26 Capital Markets Day 23

  24. Slide 24: Observations; Lightning Sensors and Data

    Observations Page 47 © Vaisala 2014-05-26 Capital Markets Day Lightning Sensors and Data Page 48 © Vaisala 2014-05-26 Capital Markets Day 24

  25. Slide 25: Competitive Advantages Support Growth Ambitions

    DEVELOP EXPAND IN LEVERAGE Competitive Advantages NEW SERVICES FOCUSED COUNTRIES GLOBAL CHANNEL Support Growth Ambitions STRENGTHEN BRAND OEM / SYSTEM RENEWABLE RENEWABLE ENERGY ENERGY SUPPLIERS DEVELOPERS OPERATORS UTILITIES BROKERS Comprehensive service offering, including technology Accurate an

  26. Slide 26: Leverage Existing Channels to Grow

    DEVELOP EXPAND IN LEVERAGE Leverage Existing NEW SERVICES FOCUSED COUNTRIES GLOBAL CHANNEL Channels to Grow STRENGTHEN BRAND  Carefully selected go-to-market approaches  Capture opportunities in countries where strong channel can be leveraged Page 51 © Vaisala 2014-05-26 Capital Markets Day DEVELO

  27. Slide 27: Realizing Value

    Realizing Value – Through growth and rigorous execution  Broad Market addressed with deep value capture  Market offers opportunities, growth requires expansion of presence  New countries – New services – Leveraging our global channel  Our role as a key shaper of renewable energy  Competitive ad

  28. Slide 28: Controlled Environment

    Questions? Thank You Page 55 © Vaisala 2014-05-26 Capital Markets Day Controlled Environment Sampsa Lahtinen Executive Vice President 28

  29. Slide 29: Controlled Environment (CEN)

    Controlled Environment (CEN) Controlled Environment Business Area serves industrial customers whose primary interest is in operational quality, productivity and energy savings. The main markets are life science (LSC) and targeted industrial applications (TIA). Page 57 © Vaisala 2014-05-26 Capital Ma

  30. Slide 30: Life Science Customers

    Life Science Customers Life Science -Pharmaceuticals Nutraceuticals -Biologics - Medical Devices - Drug Wholesalers Healthcare Compounding Hospitals Pharmacies cold chain  Life Science End Customers affected by strict regulations  Manufacturers and system integrators who supply equipment for this

  31. Slide 31: Controlled Environment Markets

    Value for the Customers We help our customers to improve  product quality  productivity  energy efficiency  maintenance activities  regulatory compliance Measure Monitor Validate in Controlled Environments Page 61 © Vaisala 2014-05-26 Capital Markets Day Controlled Environment Markets Global ma

  32. Slide 32: Market Environment and Drivers

    Market Environment and Drivers Targeted industrial applications • Process control methods / automation continue to develop Growing markets • Energy efficiency requirements, e.g. in drying processes & HVAC, increase • Condition based maintenance practices increase • Urbanisation Life Science • The re

  33. Slide 33: Strategic Choices for Instrument and System Business

    Strategic Choices for Instrument Business (LSC+TIA) Sensing / Measurement technology Application of Wide the same audience basic technology on marketing different platforms Fast & reliable Global delivery, online store service and support Sales / Active use of technical / multiple sales application

  34. Slide 34: Growth through Regional Expansion

    Growth through Regional Expansion Russian Federation Norway Helsinki Ireland Denmark UK Germany Austria, Slovenia Spain North China Croatia Republic of Korea Italy Israel South China Taiwan India Mexico Singapore  Extended network of distributors in countries with high potential  Parallel sales ch

  35. Slide 35: Vaisala's Strategy Update and Financial Targets

    Questions? Thank You Page 69 © Vaisala 2014-05-26 Capital Markets Day Vaisala’s Strategy Update and Financial Targets 35

  36. Slide 36: External Trends

    Contents Market Environment Vaisala 2014–2018 Strategy Outlook 2014 and Long-Term Financial Targets Conclusion Page 71 © Vaisala 2014-05-26 Capital Markets Day External Trends  Climate change  Renewable energy  Smart grids  Energy Efficiency  Data integration  Digitalization  Emerging economi

  37. Slide 37: Vaisala Markets

    Vaisala Markets Global market sizes and growth in 2014 Targeted Industrial Life Meteorology Airports Defense Roads Energy Maritime Applications Science In MEUR Market size* 320 145 155 100 260 40 300 230 Market growth p.a. 0% 4% -2% 6% >10% >10% 5% 7% Vaisala market share 2014* Mid High Mid High Low

  38. Slide 38: Vision and Mission; Strategic Objectives

    Vision and Mission Mission We offer high reliability and added value with our products and services by bringing together customer business expertise and our technical expertise. Vision We focus on being the leading provider of operational value for our customers in targeted segments of weather and c

  39. Slide 39: RS41 Radiosonde; Sustainability

    RS41, Fourth Generation Radiosonde  Creation of customer value  Reliability  Simplification Page 77 © Vaisala 2014-05-26 Capital Markets Day Sustainability  Sustainability in Vaisala is integrated into strategy and ensures the company’s long-term success through minimizing risks, safeguarding re

  40. Slide 40: Outlook 2014 and Long-Term Financial Targets

    Outlook 2014 and Long-Term Financial Targets 2014-05-26 79 Capital Markets Day Market Outlook 2014  Vaisala expects that continued signs of economic recovery will gradually revive weather observation and industrial measurement solutions market, typically expressing post-cyclical behavior.  In EMEA

  41. Slide 41: Business Outlook 2014; Long-Term Financial Targets

    Business Outlook 2014  Vaisala estimates its full year 2014 net sales to be in the range of EUR 290–320 million and the operating profit (EBIT) in the range of EUR 20–30 million. Page 81 © Vaisala 2014-05-26 Capital Markets Day Long-Term Financial Targets  Growth  Vaisala targets an average annua

  42. Slide 42: Customer Promise; Questions? Thank You

    Customer Promise  We engage with our customers to better understand their needs, to create operational value with an innovative offering, leading performance and usability.  We are a reliable partner for our customers through long-term commitment and our high quality products and services.  We co

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