Vaisala Oyj Class A · OMXHEX:VAIAS
Vaisala Oyj Class A — Investor Day (2024)
11 slides from Vaisala Oyj Class A's investor day presentation, 2024
Slide 1: Scalable business model enables growth and profitability
Scalable business model enables growth and profitability Heli Lindfors Chief Financial Officer
Slide 2: New long-term financial targets reflect our growth ambitions
New long-term financial targets reflect our growth ambitions Average sales Improving Strong EBITA % growth cash conversion 7% over time 2
Slide 3: Solid track record in growth
Solid track record MEUR 600 in growth 540.4 500 CAGR 7% 400 • Combined growth over last decade solid 7% 299.7 • Market drivers of the business areas are 300 different • 12% growth in Industrial Measurements 200 through breakthrough technologies, market growth and access to new markets (2014-2023) 10
Slide 4: Well-diversified businesses build resilience
Well-diversified businesses build resilience EMEA AMER APAC Meteorology, aviation & roads Renewable energy Subscriptions Life science Power Industrial Sales Sales by region by segment in 2023 in 2023 4
Slide 5: Vaisala operating result has improved steadily over the years
MEUR 80 % 14 Vaisala operating 70 result has improved 60 13 steadily over the years 12 50 • Structurally higher margins from change 40 11 of business mix • Topline growth in scaling business model 30 improves profitability 10 • Significant improvement in profitability 20 in weather systems 9 10 • Hi
Slide 6: Strong cash conversion generates value
Strong 2.0 cash conversion 1.8 generates value 1.6 1.4 • Strong capability to convert net sales 1.2 into cash 1.0 • Efficient management of net working 0.8 capital • Business model with low maintenance 0.6 CAPEX generated strong free cash flow 0.4 • Disciplined and cash generating M&A 0.2 0.0 14 15
Slide 7: Strong balance sheet
Strong balance sheet MEUR 2020 2021 2022 2023 1-9/ • Strong balance sheet provides flexibility 2024 and stability over the cycle Equity per share 5.70 6.36 6.91 7.39 7.73 • Deleveraged balance sheet enables both Return on equity, % 16.3 18.1 18.7 18.9 20.6 organic and inorganic growth Solvency ratio
Slide 8: Investments in growth and improving shareholder returns
Investments in growth and improving shareholder returns R&D investments M&A to speed up Current dividend to secure growth on top of policy maintained: technology and organic growth stable dividend market leadership increasing in line with net profit New markets, competences or development capabiliti
Slide 9: Attractive shareholder returns
Attractive shareholder MEUR 2,250 returns 2,000 390% 1,750 1,500 • Total shareholder return has been 390% 1,250 since 2014 (until Sep 2024), ~16% p.a. while OMXHGI index return has been 105%. 1,000 • Cumulative dividend payout EUR 250 750 million since 2014 including 2024 500 • Share price has incre
Slide 10: We have the keys to enable profitable growth with strong cash flow
We have the keys to enable profitable growth with strong cash flow • Growth with breakthrough technologies Average sales growth 7% • Market growth • Expand to new customer segments • Change in business mix Improving EBITA % • Scaling from growth • Continue to deliver profits in weather systems Stron
Slide 11: Vaisala
VAISALA