Vaisala Oyj Class A · OMXHEX:VAIAS

Vaisala Oyj Class A — Q4 2018 Earnings Presentation

34 slides from Vaisala Oyj Class A's earnings presentation, Feb 12, 2019

  1. Slide 1: Financial Statement Release 2018

    Financial Statement Release 2018 President and CEO Kjell Forsén February 12, 2019 © Vaisala

  2. Slide 2: Fourth quarter 2018 highlights

    Fourth quarter 2018 highlights  Orders received EUR 99.1 (83.5) million, +19%  With comparable rates +18%  Order book EUR 120.6 (124.8) million, -3%  Net sales EUR 108.3 (102.3) million, +6%  With comparable rates +5%  Gross margin 54.3 (52.5) %  Operating result EUR 13.9 (18.5) million, 12.9

  3. Slide 3: K-Patents acquisition expanded Vaisala's offering to liquid measurements

    K-Patents acquisition expanded Vaisala’s offering to liquid measurements  Global market leader in in-line process refractometers for hundreds of applications i.e. in pulp and paper, food and beverage, pharmaceutical, and semiconductor industries  Net sales EUR 11.4 million in 2017  62 employees i

  4. Slide 4: Exchange rate impact on Q4 net sales slightly positive

    Exchange rate impact on Q4 net sales slightly positive % Weather and Environment % Industrial Measurements % Vaisala 30 18 25 26 16 25 16 20 19 20 14 20 12 15 15 12 12 10 10 10 9 9 9 9 10 9 10 6 8 7 7 5 5 6 6 5 4 4 4 6 6 5 5 3 6 5 4 0 4 3 2 0 -5 2 -6 -6 0 -10 0 -5 -3 -3 FY17 Q1/18 Q2/18 Q3/18 Q4/18

  5. Slide 5: Vaisala Q4 orders received increased 19%

    Vaisala Q4 orders received increased 19%  Orders received EUR 99.1 (83.5) million, MEUR +19% 120  Increase excluding Leosphere +10% 99.1 100  Weather and Environment Business Area 83.5 27.6 31.2  EUR 67.9 (55.4) million, +23% 80 30.9 29.5 28.2 28.1  Increase excluding Leosphere +10% 60 28.8 28.

  6. Slide 6: Vaisala order book decreased by 3% due to low order intake in Weather and Environment

    Vaisala order book decreased by 3% due to low order intake in Weather and Environment  Order book EUR 120.6 (124.8) million, -3%  Excluding Leosphere and K-Patents acquisitions MEUR decrease would have been 9% 160  EUR 91.0 (99.5) million of the order book is 10.7 scheduled to be delivered in 201

  7. Slide 7: Vaisala Q4 net sales increased by 6%

    Vaisala Q4 net sales increased by 6% % of net sales Q4/2018 MEUR 120 108.3 14% 102.3 (12%) 15.0 12.8 80 9.8 19.1 10.8 11.3 11.3 32.7 11.2 18% 21.7 13.5 11.6 20.2 (32%) 13.5 17.2 8.5 40 74.2 68% 56.8 59.2 48.2 50.1 55.6 48.0 49.1 (56%) 0 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Products Projec

  8. Slide 8: Americas biggest geographical area in Q4 net sales while APAC grew fastest

    Americas biggest geographical area in Q4 net sales while APAC grew fastest % of net sales Q4/2018 EUR million Q4/2018 Q4/2017 Change % 33% 30% EMEA 32.4 36.3 -11 (29%) (35%) Americas 40.2 36.3 11 APAC 35.8 29.8 20 37% (35%) Total 108.3 102.3 6 EMEA Americas APAC Financial Statement Release 2018 2019

  9. Slide 9: Vaisala Q4 operating result margin 12.9%

    Vaisala Q4 operating result margin 12.9% MEUR 120 Q4/2018 Q4/2017 108.3 102.3 Orders received, EUR million 99.1 83.5 100 87.1 84.1 80.1 80 74.8 76.4 Net sales, EUR million 108.3 102.3 68.4 60 Gross margin, % 54.3 52.5 40 Operating expenses, EUR million 46.4 35.5 18.5 14.5 20 14.7 13.9 Operating resu

  10. Slide 10: Weather and Environment Q4

    Weather and Environment Q4 © Vaisala

  11. Slide 11: Weather and Environment Q4 net sales growth driven by Leosphere

    Weather and Environment Q4 net sales growth driven by Leosphere % of net sales Q4/2018 MEUR 100 16% 77.6 (13%) 80 74.4 9.8 12.1 60 6.9 19.1 32.7 8.0 8.5 25% 8.4 8.3 60% 40 21.7 13.5 8.7 13.5 20.2 (44%) 8.5 17.2 (43%) 46.4 20 32.5 27.4 29.7 31.9 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 result was 13.5% of net sales

    Weather and Environment operating result was 13.5% of net sales MEUR 80 74.4 77.6 Q4/2018 Q4/2017 Orders received, EUR million 67.9 55.4 60 58.3 54.6 49.3 52.0 48.1 Net sales, EUR million 77.6 74.4 40.3 40 Gross margin, % 51.1 49.2 20 14.0 Operating expenses, EUR million 30.7 22.6 7.5 10.5 7.1 -4.0

  13. Slide 13: Industrial Measurements Q4

    Industrial Measurements Q4 © Vaisala

  14. Slide 14: Industrial Measurements Q4 net sales grew by 10% to all-time high level

    Industrial Measurements Q4 net sales grew by 10% to all-time high level % of net sales Q4/2018 MEUR 30.7 30 27.9 2.9 9% 2.9 2.8 2.9 2.9 2.9 2.8 (11%) 25 2.9 20 15 27.8 25.2 25.9 25.0 25.3 25.3 26.7 22.6 10 (89%) 91% 5 0 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Products Services Products Servi

  15. Slide 15: Industrial Measurements Q4 operating result 18.1% of net sales

    Industrial Measurements Q4 operating result 18.1% of net sales MEUR 40 Q4/2018 Q4/2017 Orders received, EUR million 31.2 28.1 29.5 30.7 30 28.1 28.8 28.2 28.1 27.9 25.5 Net sales, EUR million 30.7 27.9 20 Gross margin, % 62.5 61.2 Operating expenses, EUR million 13.6 12.7 10 8.3 7.7 6.4 5.9 5.6 3.7

  16. Slide 16: January–December 2018

    January–December 2018 © Vaisala

  17. Slide 17: January–December 2018 highlights

    January–December 2018 highlights  Orders received EUR 334.2 (346.3) million, -4%  With comparable rates -1%  Order book EUR 120.6 (124.8) million, -3%  Net sales EUR 348.8 (332.6) million, +5%  With comparable rates +7%  Gross margin 53.1 (52.3) %  Operating result EUR 38.9 (40.9) million, 11

  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 45.4 (39.6) million or MEUR 13.0 (11.9) % of net sales 50  Weather and Environment 13.1 (12.1) % 45.4 39.6 of net sales 40 14.9  Industrial Measurements 12.8 (11.4) % of 9.4 11.5 12.6 30 8.2 net sales

  19. Slide 19: Cash flow from operating activities stable

    Cash flow from operating activities stable  Cash flow from operations decreased to EUR 48.3 (49.2) million MEUR  Cash and cash equivalents EUR 72.7 (91.3) 60 million, -20% 50  Two acquisitions and interest-bearing debt  Dividend payment EUR 37.6 (17.8) million 40  Capital expenditure EUR 14.5 (

  20. Slide 20: Market and Business Outlook

    Market and Business Outlook © Vaisala

  21. Slide 21: Market Outlook 2019

    Market Outlook 2019 Weather and Environment Industrial Measurements  Market for traditional weather observation  Market for industrial measurement solutions solutions is expected to be flat. is expected to continue to grow in all regions.  Demand is expected to improve in Europe  Demand for cont

  22. Slide 22: Business Outlook 2019

    Business Outlook 2019  Vaisala estimates its full-year 2019 net sales to be in the range of EUR 380–400 million and its operating result (EBIT) to be in the range of EUR 25–35 million including EUR 10–12 million acquisition related amortization and one-off expenses related to a lease contract. MEUR

  23. Slide 23: Dividend development 2010–2018

    Dividend development 2010–2018 EUR 1.20 1.00 0.80 0.50 0.62 0.60 0.40 0.55 0.58 0.45 0.45 0.45 0.48 0.50 0.20 0.33 0.33 0.00 2010 2011 2012 2013 2014 2015 2016 2017 2018* Dividend Return of capital/Additional dividend * Boards’ proposal All dividends have been adjusted to reflect increase number of

  24. Slide 24: Questions Welcome!

    Questions Welcome! © Vaisala

  25. Slide 25: Appendix January–December 2018 financials

    Appendix January–December 2018 financials © Vaisala

  26. Slide 26: Vaisala January–December orders received decreased by 4%

    Vaisala January–December orders received decreased by 4%  Orders received EUR 334.2 (346.3) million, -4%  With comparable rates -1% MEUR  Orders increased in all regions in Industrial 400 346.3 Measurements Business Area 334.2  Weather and Environment Business Area 300 113.3 94.4 119.0 79.8 105.

  27. Slide 27: Share of product sales increased

    Share of product sales increased % of net sales 1-12/18 EUR million 1-12/18 1-12/17 Change % 14% (14%) (14%) Products 230.5 210.7 2 20% Projects 70.0 76.4 -8 (20%) (23%) Services 48.3 45.4 6 66% (65%) (63%) Net sales, total 348.8 332.6 5 At comparable 356.6 332.6 7 exchange rates Products Projects S

  28. Slide 28: January–December net sales increased in APAC and Americas

    January–December net sales increased in APAC and Americas % of net sales 1-12/18 EUR million 1-12/18 1-12/17 Change % 31% 29% EMEA 102.3 107.7 -5 (29%) (32%) Americas 136.8 127.3 7 (38%) APAC 109.6 97.5 12 39% Total 348.8 332.6 5 EMEA Americas APAC Financial Statement Release 2018 2019-02-12 © Vaisa

  29. Slide 29: January–December operating result 11.1% of net sales

    January–December operating result 11.1% of net sales  Operating result EUR 38.9 (40.9) million or 11.1 (12.3) of net sales MEUR  Operating expenses EUR 148.3 (133.3) 50 million, increase 11% 12.3 40  Increase came mainly from R&D 11.1 expenses according to plan and 30 9.3 Leosphere’s operating ex

  30. Slide 30: Weather and Environment January–December net sales increased by 5%

    Weather and Environment January–December net sales increased by 5% % of net sales 1-12/18 EUR million 1-12/18 1-12/17 Change % 16% (15%) Products 125.4 112.0 12 Projects 70.0 76.4 -8 54% Services 36.9 33.8 9 30% (50%) (34%) Net sales, total 232.3 222.2 5 At comparable 236.4 222.2 6 exchange rates Pr

  31. Slide 31: Weather and Environment January–December operating result 7.6% of net sales

    Weather and Environment January–December operating result 7.6% of net sales MEUR 80 74.4 77.6 1-12/18 1-12/17 Orders received, EUR million 215.2 233.0 58.3 60 52.0 54.6 49.3 48.1 Net sales, EUR million 232.3 222.2 40.3 40 Gross margin, % 48.6 47.3 Operating expenses, EUR million 96.7 87.3 20 14.0 10

  32. Slide 32: Industrial Measurements January–December net sales increased by 6%

    Industrial Measurements January–December net sales increased by 6% % of net sales 1-12/18 10% EUR million 1-12/18 1-12/17 Change % (11%) Products 105.1 98.7 6 Services 11.4 11.6 -2 (89%) Net sales, total 116.4 110.3 6 90% At comparable 120.2 110.3 9 exchange rates Products Services Financial Stateme

  33. Slide 33: Industrial Measurements January–December operating result margin 20.5%

    Industrial Measurements January–December operating result margin 20.5% MEUR 40 1-12/18 1-12/17 Orders received, EUR million 119.0 113.3 29.5 30.7 30 28.1 28.8 27.9 28.2 28.1 25.5 Net sales, EUR million 116.4 110.3 20 Gross margin, % 62.1 62.4 Operating expenses, EUR million 48.5 46.0 10 8.3 7.7 6.4

  34. Slide 34: Observations for a Better World

    Observations for a Better World © Vaisala

Vaisala — Q4 2018 Earnings Presentation on 6ix