Slide 1: Strong demand and delivery performance continued
Strong demand and delivery performance continued Half Year Financial Report January–June 2022 Kai Öistämö, President and CEO
Slide 2: Strong demand and delivery performance continued in Q2
Strong demand and delivery performance continued in Q2 ▪ Net sales growth continued strong in Industrial Measurements business ▪ Gross margin remained at 55.3% ▪ Operating result fell short from previous year ▪ Investments in renewal of IT-systems, sales and marketing as well as R&D ▪ Order book at
Slide 3: Highlights of Q2/2022: expanding the product offering and sustainability recognition
Highlights of Q2/2022: expanding the product offering and getting recognized for continuous sustainability work New weather radar Recognition for sustainability Acknowledgement in a design launch work competition New C-band weather radar for high- Vaisala received the Carnegie An honorary award for
Slide 4: Q2/2022 orders received grew by 10%
Q2/2022 orders received grew by 10% MEUR Orders received 500 ▪ Increase in orders received was very 450 strong in Industrial Measurements 400 business area and at previous year’s level in Weather and Environment 350 business area 300 +10% ▪ Orders increased strongly in industrial 250 131.9 instrumen
Slide 5: Q2/2022 order book reached new record level
Q2/2022 order book reached new record level MEUR Order book MEUR Order book delivery schedule 200 140 +11% 124.9 ▪ Increase in industrial 180 120 instruments and life science +30% market segments in Industrial 160 100 96.2 Measurements 140 ▪ Increase in ground 120 80 transportation, aviation and 69.
Slide 6: Q2/2022 net sales grew by 10%
Q2/2022 net sales grew by 10% MEUR Net sales 500 ▪ Very strong growth in Industrial 450 Measurement business area 400 ▪ Weather and Environment business area 350 at previous year’s level 300 ▪ Net sales grew strongly in industrial instruments, life science, and aviation 250 +10% 120.5 market segment
Slide 7: Q2/2022 gross margin remained at 55.3% but operating result decreased Y/Y
Q2/2022 gross margin remained at 55.3% but operating result decreased Y/Y MEUR Operating result 60 ▪ Gross margin remained at 55.3% despite a three percentage point negative impact 50 of component spot purchases 40 ▪ Negative impact offset by higher share of more profitable product business and pric
Slide 8: Industrial Measurements: Excellent performance continued
INDUSTRIAL MEASUREMENTS Excellent performance continued ▪ Orders received increased strongly in industrial instruments, life science and power industry market segments ▪ Order book EUR 37.2 (26.0) million, +43% MEUR Orders received 200 150 +24% 100 56.2 45.2 50 0 2018 2019 2020 2021 Q2/22 Increase 1
Slide 9: Industrial Measurements: Net sales growth of 24% increased operating result
INDUSTRIAL MEASUREMENTS Net sales growth of 24% increased operating result MEUR Net sales ▪ Net sales growth strong in industrial 200 instruments, life science, and power industry market segments ▪ Gross margin decreased slightly to 63.2 150 (63.7) % +24% ▪ Additional material costs related to 100 5
Slide 10: Weather & Environment: Order book all-time high
WEATHER & ENVIRONMENT Order book all-time high ▪ Orders received increased strongly in ground transportation and aviation market segments ▪ Order book EUR 145.6 (139.4) million MEUR Orders received 300 250 200 +1% 150 75.7 74.9 100 50 0 2018 2019 2020 2021 Q1/22 Decrease 3% in constant currencies 10
Slide 11: Weather & Environment: Net sales at previous year's level
WEATHER & ENVIRONMENT Net sales at previous year’s level MEUR Net sales ▪ Net sales grew in aviation market 300 segment 250 ▪ Gross margin decreased to 48.8 (49.6) % ▪ Additional material costs related to 200 component spot purchases had a three percentage point negative impact on 150 +1% gross marg
Slide 12: H1/2022 financials
VAISALA H1/2022 financials
Slide 13: H1/2022 gross margin and operating profit margin improved Y/Y
H1/2022 gross margin and operating profit margin improved Y/Y ▪ H1/2022 net sales growth 19% MEUR H1/2022 H1/2021 2021 ▪ Growth in constant currencies 14% Net sales 239.3 201.5 437.9 ▪ Gross margin improved from previous Cost of goods sold -106.0 -90.5 -196.0 year to 55.7 (55.1) % Gross profit 133.4
Slide 14: H1/2022 cash flow from operating activities decreased
H1/2022 cash flow from operating activities decreased due to increase in net working capital MEUR 30.0 20.0 Cash and cash equivalents: 20.0 15.7 16.9 o End Q2/2022: 48.4 MEUR 13.0 o End Q4/2021: 77.9 MEUR 10.0 6.3 o End Q2/2021: 52.3 MEUR 5.6 0.3 o Net working capital increased 0.0 -1.1 due to incre
Slide 15: Strong financial position
Strong financial position MEUR H1/2022 H1/2021 2021 Equity per share 6.26 5.51 6.36 Return on equity % 17.5 15.5 18.1 Solvency ratio % 55.3 54.3 57.2 Capital expenditure 6.3 9.3 19.2 Cash and cash equivalents 48.4 52.3 77.9 Interest-bearing liabilities 74.5 66.1 50.2 Gearing % 11.5 6.9 -12.0 15 22-J
Slide 16: Market development and business outlook
Market development and business outlook
Slide 17: Market development
Market development Growth High-end industrial instruments Life science Power industry Liquid measurements Renewable energy Recovery Aviation Stable Meteorology Ground transportation 17 22-Jul-22 Half Year Financial Report January-June 2022
Slide 18: Business outlook for 2022 unchanged
Business outlook for 2022 unchanged Net sales Vaisala estimates that its full-year 2022 net sales will be in the range of EUR 465–495 million Operating result (EBIT) Vaisala estimates that its full-year 2022 operating result (EBIT) will be in the range of EUR 55–70 million 18 22-Jul-22 Half Year Fin
Slide 19: Strong demand and delivery performance continued in Q2
Strong demand and delivery performance continued in Q2 ▪ Net sales growth continued strong in Industrial Measurements business ▪ Gross margin remained at 55.3% ▪ Operating result fell short from previous year ▪ Investments in renewal of IT-systems, sales and marketing as well as R&D ▪ Order book at
Slide 20: Vaisala
VAISALA