Vaisala Oyj Class A · OMXHEX:VAIAS
Vaisala Oyj Class A — Investor Day (May 2016)
45 slides from Vaisala Oyj Class A's investor day presentation, May 11, 2016
Slide 1: Observations for a Better World
May 11, 2016 Observations for a Better World Vaisala’s Capital Markets Day, May 11, 2016 May 11, 2016 Capital Markets Day 2016 Agenda 12:15 Vaisala in Brief 12:45 Weather Business Area 13:45 Break 14:00 Controlled Environment Business Area 14:45 Vaisala Production System 15:15 Vaisala Strategy 15:45
Slide 2: Vaisala is a Global Leader in Environmental and Industrial Measurement
May 11, 2016 Contents Vaisala in Brief Weather Business Area Break Controlled Environment Business Area Vaisala Production System Vaisala Strategy Page 3 © Vaisala May 11, 2016 Capital Markets Day 2016 Vaisala is a Global Leader in Environmental and Industrial Measurement May 11, 2016 Capital Market
Slide 3: Best-in-class Weather Observation Measurement; Leading Industrial Measurement Solutions
May 11, 2016 Best-in-class Weather Observation Measurement Serves weather impacted customers’ with comprehensive offering Soundings Weather instruments Weather systems Weather radar Lightning Information services Page 5 © Vaisala May 11, 2016 Capital Markets Day 2016 Leading Industrial M
Slide 4: Vaisala Performed Well in 2015 Despite Challenging Market Conditions
May 11, 2016 Vaisala Performed Well in 2015 Despite Challenging Market Conditions May 11, 2016 Capital Markets Day 2016 Strong Order Intake in 2015 350 +8% 100 300 94.5 80 24.0 250 69.7 74.6 79.8 23.2 75.7 23.6 200 60 23.6 23.9 150 40 100 209.1 208.3 215.2 224.0 61.0 64.3 189.0 54.9 20 45.3 40.9 50
Slide 5: Net Sales Records Were Set in 2015 and Q1/16
May 11, 2016 Net Sales Records Were Set in 2015 and Q1/16 350 +6% 120 300 100 80.2 93.0 24.5 250 75.3 71.7 73.2 80 200 23.7 23.4 60 24.0 150 21.5 218.0 219.6 225.5 40 76.6 100 201.8 200.0 53.3 58.4 50 20 37.2 44.7 0 0 2011 2012 2013 2014 2015 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Weather Controlled Environm
Slide 6: Consistent Investment in R&D; Strong Cash Flow from Operating Activities
May 11, 2016 Consistent Investment in R&D Enable World Class Products 40 +6% 15 30 8.2 9.4 5.8 6.2 6.5 10 2.5 2.8 2.8 20 2.2 2.0 5 10 22.2 21.8 22.4 25.7 26.7 6.3 6.8 6.1 7.5 6.7 0 0 2011 2012 2013 2014 2015 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Weather Controlled Environment Weather Controlled Environment
Slide 7: Stable Dividend Through Out Years
May 11, 2016 Stable Dividend Through Out Years 1.40 1.20 1.23 1.00 0.80 0.90 0.90 0.90 0.90 0.95 0.85 0.85 0.60 0.75 0.65 0.65 0.65 0.40 0.20 0.00 2005 2006 2007 2008 2009 2010 2011 2012 2013 *2013 2014 2015 * Return of capital to shareholders in 2013 Page 13 © Vaisala May 11, 2016 Capital Markets D
Slide 8: Contents
May 11, 2016 Page 15 © Vaisala May 11, 2016 Capital Markets Day 2016 Contents Vaisala in Brief Weather Business Area Break Controlled Environment Business Area Vaisala Production System Vaisala Strategy Page 16 © Vaisala May 11, 2016 Capital Markets Day 2016 8
Slide 9: Weather Business Area
May 11, 2016 Observations for a Better World Weather Business Area Vaisala’s Capital Markets Day, May 11, 2016 Contents Goals and Scope Strategy Conclusions Page 18 © Vaisala May 11, 2016 Capital Markets Day 2016 9
Slide 10: Weather Business: Our Markets, Mega Trends
May 11, 2016 Contents Goals and Scope Strategy Conclusions Page 19 © Vaisala May 11, 2016 Capital Markets Day 2016 Weather Business Our Markets Mega Trends Impacting the Markets Weather Observation Solutions Page 20 © Vaisala May 11, 2016 Capital Markets Day 2016 10
Slide 11: Weather Business Strategic Goals
May 11, 2016 Weather Business Strategic Goals Growth through industry leading offering and information services expansion We have strong expertise in applications, science and technologies Customers view us as the leader in reliability Page 21 © Vaisala May 11, 2016 Capital Markets Day 2016 We
Slide 12: Reliable Weather Technology
May 11, 2016 Contents Goals and Scope Strategy Conclusions Page 23 © Vaisala May 11, 2016 Capital Markets Day 2016 Reliable Weather Technology BUSINESS PARTNER PROVIDING OPERATIONAL VALUE Information Services ONE STOP SHOP PROJECT HOUSE Installation and integration RELIABLE WEATHER TECHNOLOGY PROVID
Slide 13: Global Leader Across the Offering; Truly Global Business and Presence
May 11, 2016 Global Leader Across the Offering Weather, Visibility, Road/Aviation Radiosonde Ceilometers Weather radars Multiweather Present weather Weather stations #1 #1 #1 #1 #1 #1-3 Page 25 © Vaisala May 11, 2016 Capital Markets Day 2016 Truly Global Business and Presence Countries where sold 20
Slide 14: Continuous Innovation to Sustain Leadership Position
May 11, 2016 Continuous Innovation to Sustain Leadership Position Weather Business R&D Personnel in 300 Research and Development of Vaisala personnel with University or 2/3 Doctoral degree Research and Technology Team 30 involved in applied science Page 27 © Vaisala May 11, 2016 Capital Markets Day
Slide 15: Software Product Examples; Dependable Project Delivery
May 11, 2016 Software Product Examples IRIS Weather Radar Software Network Manager Updates through releases One secure platform to manage small and large observation networks with high-quality data 24/7 Simple and easy-to-understand interface Affordable and easy to buy and maintain over the
Slide 16: Aviation Total Weather Solution
May 11, 2016 Aviation Total Weather Solution Page 31 © Vaisala May 11, 2016 Capital Markets Day 2016 Complete Meteorological Infrastructure Page 32 © Vaisala May 11, 2016 Capital Markets Day 2016 16
Slide 17: Cutting-edge Information Services; Weather Impacts Society, Business and People
May 11, 2016 Cutting-edge Information Services BUSINESS PARTNER PROVIDING OPERATIONAL VALUE Information Services ONE STOP SHOP PROJECT HOUSE Installation and integration RELIABLE WEATHER TECHNOLOGY PROVIDER Hardware, Software & Basic Services Page 33 © Vaisala May 11, 2016 Capital Markets Day 2016 W
Slide 18: Dynamic Traffic Signal in Colorado
May 11, 2016 Dynamic Traffic Signal in Colorado Issue Accumulation of snow in a blind curve Snow would melt during the day and refreeze later in the day Customer noticed crashes were occurring at this curve during otherwise good driving conditions Solution Use a non-intrusive fixed weather s
Slide 19: Observation Enhanced Decision Support
May 11, 2016 Observation Enhanced Decision Support Energy Pre-assessments supported by decade long global wind data and solar maps Investment due diligence services including measurement campaigns Short-term forecasts based on numerical weather models and learning systems Lightning Over 90%
Slide 20: Global Market Sizes and Growth 2016
May 11, 2016 Contents Goals and Scope Strategy Conclusions Page 39 © Vaisala May 11, 2016 Capital Markets Day 2016 Global Market Sizes and Growth 2016 Market share indication: Meteorology Infrastructure Transportation Energy Low <10% Mid 10–25% in MEUR High >25% Market size* 450-500 300 300-350 No
Slide 21: Questions Welcome!
May 11, 2016 Weather Business Area BUSINESS PARTNER Growth through industry leading PROVIDING OPERATIONAL VALUE offering and information services Information Services expansion ONE STOP SHOP PROJECT HOUSE We have strong expertise in applications, science and Installation and integration technolo
Slide 22: Controlled Environment
May 11, 2016 Contents Vaisala in Brief Weather Business Area Break Controlled Environment Business Area Vaisala Production System Vaisala Strategy Page 43 © Vaisala May 11, 2016 Capital Markets Day 2016 Observations for a Better World Controlled Environment Vaisala’s Capital Markets Day, May 11, 201
Slide 23: Contents
May 11, 2016 Contents Business Scope Strategy Conclusions Page 45 © Vaisala May 11, 2016 Capital Markets Day 2016 Contents Business Scope Strategy Conclusions Page 46 © Vaisala May 11, 2016 Capital Markets Day 2016 23
Slide 24: Controlled Environment: Markets and Customer Benefits
May 11, 2016 Controlled Environment Our Markets Industrial Measurement Solutions Mega Trends Page 47 © Vaisala May 11, 2016 Capital Markets Day 2016 We Help Our Customers to Improve Product quality Productivity Energy efficiency Maintenance activities Regulatory compliance Page 48 © Vaisal
Slide 25: Global Market Sizes and Growth 2016
May 11, 2016 Global Market Sizes and Growth 2016 Power Market share indication: Instruments Transmission Life Science Low <10% Mid 10–25% in MEUR High >25% Market size* 400-450 150-200 250-300 No major changes to market overviews Market growth or growth rates p.a. 5% 15% 10% Market sizes updated
Slide 26: Industry Cases
May 11, 2016 Industry Cases May 11, 2016 Examples of Industries We Serve Power Transmission Life Sciences Industrial Drying (e.g. paper) Electronics Building Automation, e.g demand controlled ventilation Automotive Industry Agriculture and Food Industry Page 52 © Vaisala May 11, 2016 C
Slide 27: Power Transmission; Life Sciences
May 11, 2016 Power Transmission Power Transmission We measure multiple gases in transformer oil. Early indication about the possible faults in high voltage transformers. Improves the efficiency of customers’ operations, generates cost savings. Page 53 © Vaisala May 11, 2016 Capital Markets Day 2016
Slide 28: Building Automation; Johnson Controls
May 11, 2016 Building Automation Our products are used to optimize ventilation e.g. in office buildings, hospitals, data centers or factories. Considerable cost savings through improved efficiency of heating, ventilation and air conditioning. Page 55 © Vaisala May 11, 2016 Capital Markets Day 2016 J
Slide 29: Growth through Product Leadership
May 11, 2016 Contents Business Scope Strategy Conclusions Page 57 © Vaisala May 11, 2016 Capital Markets Day 2016 Growth through Product Leadership Understanding our customers’ needs Achieving #1 position in selected markets Continuously creating winning products Page 58 © Vaisala May 11, 2016
Slide 30: Understanding Our Customers' Needs; Achieving #1 Position
May 11, 2016 Understanding Our Customers’ Needs Growth Markets Strong growth potential in Life Science and Power Transmission markets Investments in new offering addressing the specific market needs Identification of new attractive growth markets Flagship Markets Strong position with our hig
Slide 31: Focus on Channel Partner Management; Continuously Creating Winning Products
May 11, 2016 Focus on Channel Partner Management Partner selection Non-exclusive contracts Training Partner Management Model Active sales management Annual global distributor meeting in Vaisala head office Local distributor meetings in regions First-class support organization Regular perform
Slide 32: Growth Plan
May 11, 2016 Growth Plan Leverage new parameter capabilities in new markets Focus on organic growth with existing R&D roadmap Page 63 © Vaisala May 11, 2016 Capital Markets Day 2016 Contents Business Scope Strategy Conclusions Page 64 © Vaisala May 11, 2016 Capital Markets Day 2016 32
Slide 33: Questions Welcome!
May 11, 2016 Growth through Product Leadership Understanding our customers’ needs Achieving #1 position in selected markets Continuously creating winning products Page 65 © Vaisala May 11, 2016 Capital Markets Day 2016 Questions Welcome! 33
Slide 34: Vaisala Production System
May 11, 2016 Contents Vaisala in Brief Weather Business Area Break Controlled Environment Business Area Vaisala Production System Vaisala Strategy Page 67 © Vaisala May 11, 2016 Capital Markets Day 2016 Vaisala Production System Vaisala’s Capital Markets Day, May 11, 2016 34
Slide 35: Developments Correspond with Delivery Performance
May 11, 2016 Developments Correspond with Delivery Performance On-Time- 98% Delivery 93% Performance 90% 88% 62% 85% 2008 2009 2010 2011 2012 2013 2014 2015 2016 Global Lean Production Cells PDCA practices Daily Management Operations Founded Value Stream Kaizen Improvements via Kaizen Standard Work
Slide 36: Vaisala Production System – Way to Drive Operational Excellence
May 11, 2016 Vaisala Production System – Way to Drive Operational Excellence Operations Strategy Systematic Standard Way Improvement of Working Conscious choices between several Entire organization engaged in Agreed, standard ways of working alternatives with long-term improving our ways of working
Slide 37: Factory Footprint; Own Factories + Partners
May 11, 2016 Factory Footprint 2 Own Factories + 6 Partners Boulder USA, CO Helsinki Finland +500 Suppliers’ Network Processes Assembly & test Processes Sensor chip manuf. Sourcing strategy aims for: Integration Sensor assembly • Supplier base Products Lightning detection Final assembly consolidatio
Slide 38: Vaisala Strategy
May 11, 2016 Contents Vaisala in Brief Weather Business Area Break Controlled Environment Business Area Vaisala Production System Vaisala Strategy Page 75 © Vaisala May 11, 2016 Capital Markets Day 2016 Vaisala Strategy May 11, 2016 Capital Markets Day 2016 38
Slide 39: Weather Business Area
May 11, 2016 Page 77 © Vaisala May 11, 2016 Capital Markets Day 2016 Weather Business Area BUSINESS PARTNER Growth through industry leading PROVIDING OPERATIONAL VALUE offering and information services Information Services expansion ONE STOP SHOP PROJECT HOUSE We have strong expertise in applica
Slide 40: Controlled Environment Business Area; Sustainability
May 11, 2016 Controlled Environment Business Area Growth through Product Leadership Understanding our customers’ needs Achieving #1 position in selected markets Continuously creating winning products Page 79 © Vaisala May 11, 2016 Capital Markets Day 2016 Sustainability May 11, 2016 Capital Ma
Slide 41: Sustainability Metrics
May 11, 2016 Committed to use Emission reductions from 100% renewable electricity consumption were 87% -33% energy by 2020 Complete compared to 2014 Waste recovery rate of the manufacturing sites was 3 Vaisala sites send no waste to landfills at all Water consumption from manufacturing sites decreas
Slide 42: Vaisala Markets; Market Outlook 2016
May 11, 2016 Vaisala markets Global market sizes and growth in 2016 Meteorology Power Infrastructure Transportation Energy Instruments Transmission Life Science In MEUR Market size* 450–500 300 300–350 400–450 150–200 250–300 Market growth p.a. 0% 0–5% >10% 5% 15% 10% Vaisala market share 2016* High
Slide 43: Business Outlook 2016; Vaisala's Long-term Targets
May 11, 2016 Business outlook 2016 Vaisala updated its business outlook for 2016 to include restructuring expenses in the operating result estimate. Vaisala continues to estimate its full year 2016 net sales to be in the range of EUR 305–335 million. Vaisala estimates its operating result (EBIT)
Slide 44: Long-Term Financial Targets: EBIT %
May 11, 2016 Long-Term Financial Targets: EBIT % 20% 15% Investments in R&D 10% Power Transmission and new product Net sales growth with higher offering improving than average gross margin %: capacity utilization 5% Energy business, Information and bringing scale services, Transportation economies b
Slide 45: Observations for a Better World
May 11, 2016 Observations for a Better World 45