Slide 1: Q3 EBIT increased following improvement in gross margin
Q3 EBIT increased following improvement in gross margin Interim Report January–September 2023 Kai Öistämö, President and CEO
Slide 2: Q3 EBIT increased following improvement in gross margin
Q3 EBIT increased following improvement in gross margin ▪ Net sales decreased by 2% ▪ Order book EUR 166 million ▪ Operating result increased Y/Y ▪ Cash flow from operating activities EUR 18.5 (7.3) million Net sales EBIT 130.4 (133.3) MEUR 25.2 (22.0) MEUR -2% Subscription sales excluded from order
Slide 3: Q3/2023 orders received decreased by 8%
Q3/2023 orders received decreased by 8% MEUR Orders received 600 ▪ Orders received decreased in both business areas Y/Y 500 ▪ Orders decreased in most of the market 400 segments 119.7 300 129.5 200 100 0 2019 2020 2021 2022 Q3/23 Decrease 2% in constant currencies 2019-2021 include subscription sale
Slide 4: Q3/2023 order book EUR 166 million
Q3/2023 order book EUR 166 million MEUR Order book MEUR Order book delivery schedule 180 100 92.5 93.5 ▪ Order book decreased in 160 90 Industrial Measurements 140 80 business area 72.3 70.0 70 ▪ Increase in roads and 120 60 automotive and aviation market 100 segments in Weather and 50 Environment b
Slide 5: Q3/2023 net sales decreased by 2%
Q3/2023 net sales decreased by 2% MEUR Net sales 600 ▪ Net sales decreased in Industrial Measurements business area and were at 500 previous year’s level in Weather and Environment business area 400 ▪ Net sales growth in renewable energy, 300 133.3 130.4 roads and automotive, as well as in power and
Slide 6: Q3/2023 operating result increased Y/Y
Q3/2023 operating result increased Y/Y MEUR Operating result 70 ▪ Gross margin improved to 58.0 (54.7) % 60 ▪ Component spot purchases had a 0.7 (4.2) percentage point negative impact 50 ▪ Operating expenses at previous year’s 40 22.0 25.2 level 16.5% 19.3% 30 20 10 0 2019 2020 2021 2022 Q3/23 6 27-
Slide 7: Industrial Measurements: Q3/23 orders received decreased
INDUSTRIAL MEASUREMENTS Q3/23 orders received decreased by 14% Y/Y ▪ Orders received decreased in industrial instruments, life science, as well as in power and energy market segments ▪ Order book decreased to EUR 34.3 (39.1) million MEUR Orders received 250 200 150 58.8 50.4 100 50 0 2019 2020 2021
Slide 8: Q3/23 operating result margin improved despite decrease in net sales
INDUSTRIAL MEASUREMENTS Q3/23 operating result margin improved despite decrease in net sales MEUR Net sales ▪ Net sales decreased in life science and 250 industrial instruments market segments ▪ Gross margin improved to 64.0 (60.9) % 200 ▪ Additional material costs related to component spot purchase
Slide 9: Weather & Environment: Q3/23 orders received roughly at previous year's level
WEATHER & ENVIRONMENT Q3/23 orders received roughly at previous year’s level ▪ Orders received decreased in meteorology market segment, but grew very strongly in aviation ▪ Order book EUR 131.5 (123.4) million, +7% MEUR Orders received 300 250 200 69.3 70.7 150 100 50 0 2019 2020 2021 2022 Q3/23 Gro
Slide 10: Q3/23 operating result margin improved
WEATHER & ENVIRONMENT Q3/23 operating result margin improved MEUR Net sales ▪ Net sales grew very strongly in renewable 350 energy as well as in roads and 300 automotive but decreased strongly in aviation market segment 250 ▪ Gross margin improved to 53.7 (49.9) % 200 76.4 ▪ Additional material cost
Slide 11: 1-9/2023 financials
VAISALA 1-9/2023 financials
Slide 12: 1-9/2023 showed resilience in net sales and operating result
1-9/2023 showed resilience in net sales and operating result ▪ 1-9/2023 net sales growth 5% MEUR 1-9/2023 1-9/2022 1-12/2022 ▪ Growth in constant currencies 8% Net sales 393.0 372.6 514.2 ▪ Gross margin was at previous year’s Cost of goods sold -171.4 -166.4 -232.2 level 56.4 (55.3) % Gross profit 2
Slide 13: 1-9/2023 cash flow from operating activities increased
1-9/2023 cash flow from operating activities increased as a result of decrease in trade receivables MEUR 50 40 36.036.1 Cash and cash equivalents: 30.430.3 o End Q3/2023: 65.8 MEUR 30 o End Q4/2022: 55.5 MEUR 20 o End Q3/2022: 52.1 MEUR 10.6 10 0.4 o Net working capital flat 0 -1.4 -1.6 -1.7 -10 -11
Slide 14: Strong financial position
Strong financial position MEUR 1-9/2023 1-9/2022 1-12/2022 Equity per share 7.07 6.86 6.91 Return on equity % 19.0 20.1 18.7 Solvency ratio % 60.1 57.7 58.1 Capital expenditure 10.9 9.6 13.7 Cash and cash equivalents 65.8 52.1 55.5 Interest-bearing liabilities 62.8 76.0 63.4 Gearing % -1.2 9.6 3.2 1
Slide 15: Market development and business outlook
VAIHDA KUVA Market development and business outlook
Slide 16: Market development 2023
Market development 2023 Growth Power and energy Liquid measurements Renewable energy Roads and automotive Stable Meteorology Aviation Slow down High-end industrial instruments Life science 16 27-Oct-23 Interim Report January-September 2023
Slide 17: Business outlook for 2023 reiterated
Business outlook for 2023 reiterated Net sales Vaisala estimates that its full-year 2023 net sales will be in the range of EUR 530–560 million Operating result (EBIT) Vaisala estimates that its full-year 2023 operating result (EBIT) will be in the range of EUR 65–75 million 17 27-Oct-23 Interim Repo
Slide 18: Q3 EBIT increased following improvement in gross margin
Q3 EBIT increased following improvement in gross margin ▪ Net sales decreased by 2% ▪ Order book EUR 166 million ▪ Operating result increased Y/Y ▪ Cash flow from operating activities EUR 18.5 (7.3) million Net sales EBIT 130.4 (133.3) MEUR 25.2 (22.0) MEUR -2% Subscription sales excluded from order
Slide 19: VAISALA
VAISALA