Vaisala Oyj Class A · OMXHEX:VAIAS

Vaisala Oyj Class A — Q3 2018 Earnings Presentation

33 slides from Vaisala Oyj Class A's earnings presentation, Oct 23, 2018

  1. Slide 1: Interim Report January–September 2018

    Interim Report January–September 2018 President and CEO Kjell Forsén October 23, 2018 © Vaisala

  2. Slide 2: Third quarter 2018 highlights

    Third quarter 2018 highlights  Orders received EUR 76.8 (100.1) million, -23%  Order book EUR 119.2 (145.0) million, -18%  Net sales EUR 84.1 (87.1) million, -3%  Gross margin 55.9 (52.8) %  Operating result EUR 14.5 (14.7) million, 17.3 (16.9) % of net sales  Earnings per share EUR 0.30 (0.30

  3. Slide 3: Leosphere acquisition biggest in Vaisala's history

    Leosphere acquisition biggest in Vaisala’s history  Leosphere’s 2017 net sales EUR 27 million with over 15% operating income margin  Purchase price (debt and cash free) EUR 38 million  Around 125 employees  Reported as part of Weather and Environment Business Area’s results as of October 11, 201

  4. Slide 4: No exchange rate impact on net sales in Q3

    No exchange rate impact on net sales in Q3 % Weather and Environment % Industrial Measurements % Vaisala 30 18 17 25 26 16 16 25 16 20 20 19 20 14 15 12 15 12 15 14 11 12 10 12 12 10 9 9 10 9 9 10 5 10 9 5 3 4 8 7 6 6 6 6 6 0 6 5 4 -5 -2 -3 4 3 0 -6 -6 2 2 2 0 -10 2 1 -10-11 -1 -1 0 -2 -15 0 -5 -3 -

  5. Slide 5: Vaisala Q3 orders received decreased 23% mainly due to low project orders

    Vaisala Q3 orders received decreased 23% mainly due to low project orders  Orders received EUR 76.8 (100.1) MEUR million, -23% 120  Weather and Environment Business Area 100.1 100  EUR 48.7 (72.5) million, -33% 27.6 76.8 – No large project orders in any region 80 30.9 29.5 28.2 28.1 28.1  Indust

  6. Slide 6: Vaisala order book decreased by 18%

    Vaisala order book decreased by 18%  Order book EUR 119.2 (145.0) million, -18% MEUR  Decrease in all geographical areas 160 145.0  EUR 59.5 (66.1) million of the order book 10.7 is scheduled to be delivered in 2018 120 10.0 12.2 10.7 13.4 14.3 119.2 13.0  Weather and Environment Business Area 

  7. Slide 7: Vaisala Q3 net sales decreased due to timing of project deliveries

    Vaisala Q3 net sales decreased due to timing of project deliveries % of net sales Q3/2018 MEUR 120 13% (11%) 87.1 12.8 84.1 80 9.8 11.3 16% 32.7 11.2 10.8 11.3 21.7 13.5 11.6 20.2 (25%) 13.5 17.2 8.5 40 71% 55.6 56.8 59.2 48.2 50.1 48.0 49.1 (64%) 0 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Products

  8. Slide 8: Americas share of net sales increased

    Americas share of net sales increased % of net sales Q3/2018 EUR million Q3/2018 Q3/2017 Change % 31% 29% EMEA 24.4 29.6 -18 (30%) (34%) Americas 33.6 31.7 6 APAC 26.0 25.8 1 40% (36%) Total 84.1 87.1 -3 EMEA Americas APAC Interim Report January-September 2018 2018-10-23 © Vaisala 8

  9. Slide 9: Vaisala Q3 operating result margin strong 17.3% despite decrease in net sales

    Vaisala Q3 operating result margin strong 17.3% despite decrease in net sales MEUR 120 Q3/2018 Q3/2017 102.3 Orders received, EUR million 76.8 100.1 100 87.1 84.1 76.4 80.1 80 74.8 Net sales, EUR million 84.1 87.1 68.4 60 Gross margin, % 55.9 52.8 40 Operating expenses, EUR million 32.5 30.5 18.5 20

  10. Slide 10: Weather and Environment Q3

    Weather and Environment Q3 © Vaisala

  11. Slide 11: Q3 net sales decreased due to timing of project deliveries

    Weather and Environment Q3 net sales decreased due to timing of project deliveries % of net sales Q3/2018 MEUR 80 16% 9.8 (12%) 60 58.3 54.6 6.9 32.7 8.0 8.5 8.4 8.3 40 21.7 13.5 25% 8.7 13.5 20.2 60% 17.2 (37%) 8.5 (51%) 20 27.4 29.7 31.9 32.5 23.0 22.7 23.8 0 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3

  12. Slide 12: Weather and Environment operating profit increased from previous year

    Weather and Environment operating profit increased from previous year following improvement in gross margin MEUR 80 74.4 Q3/2018 Q3/2017 Orders received, EUR million 48.7 72.5 58.3 60 52.0 54.6 49.3 48.1 Net sales, EUR million 54.6 58.3 40.3 40 Gross margin, % 52.2 47.1 20 14.0 Operating expenses, E

  13. Slide 13: Industrial Measurements Q3

    Industrial Measurements Q3 © Vaisala

  14. Slide 14: Industrial Measurements Q3 net sales grew by 2%

    Industrial Measurements Q3 net sales grew by 2% % of net sales Q3/2018 MEUR 28.8 29.5 30 9% 2.9 2.8 2.9 2.9 2.9 2.8 (10%) 25 2.9 20 15 25.2 25.9 25.0 25.3 25.3 26.7 22.6 10 (90%) 91% 5 0 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Products Services Products Services Interim Report January-September 20

  15. Slide 15: Industrial Measurements Q3 operating result 26.1% of net sales

    Industrial Measurements Q3 operating result 26.1% of net sales MEUR 40 Q3/2018 Q3/2017 Orders received, EUR million 28.1 27.6 28.8 28.2 29.5 30 28.1 27.9 28.1 25.5 Net sales, EUR million 29.5 28.8 20 Gross margin, % 63.0 64.2 Operating expenses, EUR million 10.9 10.1 10 8.3 7.7 6.4 5.9 3.7 4.4 4.7 O

  16. Slide 16: January–September 2018

    January–September 2018 © Vaisala

  17. Slide 17: January–September 2018 highlights

    January–September 2018 highlights  Orders received EUR 235.0 (262.9) million, -11%  With comparable rates -7%  Order book EUR 119.2 (145.0) million, -18%  Net sales EUR 240.5 (230.3) million, +4%  With comparable rates +8%  Gross margin 52.5 (52.2) %  Operating result EUR 24.9 (22.4) million,

  18. Slide 18: R&D expenditure continued to increase according to plan in both business areas

    R&D expenditure continued to increase according to plan in both business areas  R&D expenses EUR 32.1 (29.2) million or MEUR 13.4 (12.7) % of net sales 39.6 40  Weather and Environment 13.6 (13.6) % 32.1 of net sales 9.4 11.5 12.6 30 8.2  Industrial Measurements 12.9 (11.0) % of 6.5 11.1 net sale

  19. Slide 19: Cash flow from operating activities declined due to working capital development

    Cash flow from operating activities declined due to working capital development  Cash flow from operations decreased to EUR 18.9 (26.2) million due to working capital development MEUR  Low advance payments due to low project order 60 intake 50  Cash and cash equivalents EUR 62.6 (72.3) million, -

  20. Slide 20: Market and Business Outlook

    Market and Business Outlook © Vaisala

  21. Slide 21: Market Outlook 2018

    Market Outlook 2018 Weather and Environment Industrial Measurements  Market for traditional weather observation  Market for industrial measurement solutions solutions is expected to be flat. is expected to be healthy.  Demand is expected to improve in Americas.  Underlying demand is expected to

  22. Slide 22: Business Outlook 2018

    Business Outlook 2018  As published in October 4, 2018, Vaisala estimates its full year 2018 net sales to be in the range of EUR 340–360 million and its operating result (EBIT) to be in the range of EUR 30–36 million. MEUR Net sales MEUR Operating result 340 50 332.6 320 40 318.5 319.1 40.9 32.8**

  23. Slide 23: Questions Welcome!

    Questions Welcome! © Vaisala

  24. Slide 24: Appendix January–September 2018 financials

    Appendix January–September 2018 financials © Vaisala

  25. Slide 25: Vaisala January–September orders received decreased by 11%

    Vaisala January–September orders received decreased by 11%  Orders received EUR 235.0 (262.9) million, -11%  Orders increased in APAC in Industrial MEUR Measurements and decreased in all regions in 400.0 346.3 Weather and Environment  Weather and Environment Business Area 300.0 113.3 94.4 235.0 7

  26. Slide 26: Share of project sales has increased partly due to change in revenue recognition

    Share of project sales has increased partly due to change in revenue recognition % of net sales 1-9/18 EUR million 1-9/18 1-9/17 Change % 14% (14%) (14%) Products 156.4 153.9 2 Projects 50.9 43.7 16 21% (20%) (19%) Services 33.3 32.6 2 65% (65%) (67%) Net sales, total 240.5 230.3 4 At comparable 249

  27. Slide 27: January–September net sales increased in APAC and Americas

    January–September net sales increased in APAC and Americas % of net sales 1-9/18 EUR million 1-9/18 1-9/17 Change % 31% 29% EMEA 70.0 71.5 -2 (29%) (31%) Americas 96.7 91.1 6 (40%) APAC 73.9 67.7 9 40% Total 240.5 230.3 4 EMEA Americas APAC Interim Report January-September 2018 2018-10-23 © Vaisala

  28. Slide 28: January–September operating result 10.4% of net sales

    January–September operating result 10.4% of net sales  Operating result EUR 24.9 (22.4) MEUR million or 10.4 (9.7) of net sales  Net sales growth in both business 50 areas increased operating profit 40 12.3  Operating expenses EUR 101.9 (97.8) 30 9.3 million 8.8 10.4  Increase came mainly from R

  29. Slide 29: Weather and Environment January–September net sales increased by 5%

    Weather and Environment January–September net sales increased by 5% % of net sales 1-9/18 EUR million 1-9/18 1-9/17 Change % 16% (16%) Products 79.0 80.2 -1 Projects 50.9 43.7 16 51% Services 24.8 24.0 3 33% (54%) (30%) Net sales, total 154.7 147.9 5 At comparable 159.3 147.9 8 exchange rates Produc

  30. Slide 30: Weather and Environment January–September operating result margin improved to 4.6%

    Weather and Environment January–September operating result margin improved to 4.6% MEUR 1-9/18 1-9/17 74.4 70 Orders received, EUR million 147.3 177.6 58.3 52.0 54.6 Net sales, EUR million 154.7 147.9 49.3 48.1 50 40.3 Gross margin, % 47.3 46.4 30 Operating expenses, EUR million 66.1 64.7 14.0 10 7.

  31. Slide 31: Industrial Measurements January–September net sales increased by 4%

    Industrial Measurements January–September net sales increased by 4% % of net sales 1-9/18 10% EUR million 1-9/18 1-9/17 Change % (11%) Products 77.3 73.7 5 Services 8.5 8.7 -2 (89%) Net sales, total 85.8 82.4 4 90% At comparable 89.9 82.4 9 exchange rates Products Services Interim Report January-Sep

  32. Slide 32: Industrial Measurements January–September operating result margin 21.4%

    Industrial Measurements January–September operating result margin 21.4% MEUR 40 1-9/18 1-9/17 Orders received, EUR million 87.7 85.3 28.1 28.8 28.2 28.1 29.5 30 27.9 25.5 Net sales, EUR million 85.8 82.4 20 Gross margin, % 62.0 62.8 Operating expenses, EUR million 34.9 33.3 10 8.3 7.7 6.4 5.9 3.7 4.

  33. Slide 33: Observations for a Better World

    Observations for a Better World © Vaisala

Vaisala — Q3 2018 Earnings Presentation on 6ix