Vaisala Oyj Class A · OMXHEX:VAIAS

Vaisala Oyj Class A — Q2 2018 Earnings Presentation

33 slides from Vaisala Oyj Class A's earnings presentation, Jul 20, 2018

  1. Slide 1: Half Year Financial Report 2018

    Half Year Financial Report 2018 President and CEO Kjell Forsén July 20, 2018 © Vaisala

  2. Slide 2: Second quarter 2018 highlights

    Second quarter 2018 highlights  Orders received EUR 71.1 (81.3) million, -12%  With comparable rates -9%  Order book EUR 126.5 (133.6) million, -5%  Net sales EUR 80.1 (74.8) million, +7%  With comparable rates +12%  Gross margin 50.1 (52.4) %  Operating result EUR 4.7 (5.1) million, 5.9 (6.8

  3. Slide 3: Exchange rate impact on net sales growth

    Exchange rate impact on net sales growth % 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 0 2 2 0 -10 2 1 -10-11 -1 -1 0 -2 -15 0 -5 Q1/17 Q2/17 Q3/1

  4. Slide 4: Vaisala Q2 orders received decreased 12% mainly due to low project orders

    Vaisala Q2 orders received decreased 12% mainly due to low project orders  Orders received EUR 71.1 (81.3) million, MEUR -12% 120  With comparable rates -9% 100  Weather and Environment Business Area 81.3 27.6  EUR 42.4 (53.0) million, -20% 80 71.1 28.1 30.9 29.5 28.2 – With comparable rates -17

  5. Slide 5: Vaisala order book decreased 5%

    Vaisala order book decreased 5%  Order book EUR 126.5 (133.6) million, -5% MEUR  Decrease in EMEA and Americas 160  EUR 80.2 (79.9) million of the order book 133.6 10.7 126.5 is scheduled to be delivered in 2018 120 10.0 12.2 10.7 13.4 14.3  Weather and Environment Business Area  EUR 112.2 (121

  6. Slide 6: Vaisala Q2 net sales growth came from project business

    Vaisala Q2 net sales growth came from project business % of net sales Q2/2018 MEUR 120 15% (17%) 12.8 80.1 80 74.9 9.8 32.7 11.2 10.8 11.3 21.7 11.6 23% 13.5 17.2 20.2 8.5 (12%) 63% 40 (71%) 50.1 55.6 56.8 49.1 48.2 48.0 0 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Products Projects Services Products Proje

  7. Slide 7: APAC and Americas net sales increased due to strong project business and industrial instrument deliveries

    APAC and Americas net sales increased due to strong project business and industrial instrument deliveries % of net sales Q2/2018 EUR million Q2/2018 Q2/2017 Change % 29% 29% EMEA 23.3 23.8 -2 (27%) (32%) Americas 33.6 30.6 10 APAC 23.2 20.4 14 42% (41%) Total 80.1 74.8 7 EMEA Americas APAC Half Year

  8. Slide 8: Vaisala Q2 operating result decreased mainly due to declined gross margin

    Vaisala Q2 operating result decreased mainly due to declined gross margin MEUR 120 Q2/2018 Q2/2017 102.3 Orders received, EUR million 71.1 81.3 100 87.1 76.4 80.1 80 74.8 Net sales, EUR million 80.1 74.8 68.4 60 Gross margin, % 50.1 52.4 40 Operating expenses, EUR million 35.9 34.5 18.5 20 14.7 Oper

  9. Slide 9: Weather and Environment Q2

    Weather and Environment Q2 © Vaisala

  10. Slide 10: Weather and Environment Q2 net sales growth came from project business

    Weather and Environment Q2 net sales growth came from project business % of net sales Q2/2018 MEUR 80 15% 9.8 (17%) 60 49.3 52.0 6.9 46% 32.7 8.0 8.4 8.3 (56%) 40 21.7 8.7 13.5 20.2 17.2 8.5 39% 20 27.4 29.7 31.9 (27%) 23.0 22.7 23.8 0 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Products Projects Services P

  11. Slide 11: Weather and Environment operating profit slightly negative due to decline in gross margin

    Weather and Environment operating profit slightly negative due to decline in gross margin MEUR 80 74.4 Q2/2018 Q2/2017 Orders received, EUR million 42.4 53.0 58.3 60 52.0 49.3 48.1 Net sales, EUR million 52.0 49.3 40.3 40 Gross margin, % 44.1 47.7 20 14.0 Operating expenses, EUR million 23.3 22.6 7.

  12. Slide 12: Industrial Measurements Q2

    Industrial Measurements Q2 © Vaisala

  13. Slide 13: Industrial Measurements Q2 net sales grew by 10%

    Industrial Measurements Q2 net sales grew by 10% % of net sales Q2/2018 MEUR 30 28.1 10% 25.5 2.9 2.9 2.9 2.9 2.8 (11%) 25 2.9 20 15 25.2 25.9 25.0 25.3 25.3 22.6 10 (89%) 90% 5 0 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Products Services Products Services Half Year Financial Report 2018 2018-07-20 © Vai

  14. Slide 14: Industrial Measurements Q2 operating result margin improved to 16.7%

    Industrial Measurements Q2 operating result margin improved to 16.7% MEUR 40 Q2/2018 Q2/2017 Orders received, EUR million 28.8 28.2 28.1 28.8 27.9 28.2 28.1 30 25.5 Net sales, EUR million 28.1 25.5 20 Gross margin, % 61.3 61.4 Operating expenses, EUR million 12.5 11.9 10 8.3 6.4 5.9 3.7 4.4 4.7 Oper

  15. Slide 15: January–June 2018

    January–June 2018 © Vaisala

  16. Slide 16: January–June 2018 highlights

    January–June 2018 highlights  Orders received EUR 158.3 (162.8) million, -3%  With comparable rates +2%  Order book EUR 126.5 (133.6) million, -5%  Net sales EUR 156.4 (143.2) million, +9%  With comparable rates +15%  Gross margin 50.7 (51.9) %  Operating result EUR 10.4 (7.7) million, 6.7 (5

  17. Slide 17: R&D expenditure continued to increase

    R&D expenditure continued to increase  R&D expenses EUR 22.1 (20.6) million or MEUR 14.1 (14.4) % of net sales 39.6 40  Weather and Environment 14.3 (16.0) % of net sales 9.4 11.5 12.6 30 8.2  Industrial Measurements 13.9 (11.8) % of 6.5 22.1 net sales 20 7.8 25.7 26.7 26.5 27.0 10 22.4 14.3 0 20

  18. Slide 18: 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 8.3 (11.3) million due to working capital development MEUR  Cash and cash equivalents EUR 56.7 (60.6) 60 million, -7% 50  Dividend payment EUR 37.6 (17.8) million  Capital

  19. Slide 19: Market and Business Outlook

    Market and Business Outlook © Vaisala

  20. Slide 20: 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, growth is is expected to be healthy. expected to originate from digital solutions as  Underlying demand is

  21. Slide 21: Business Outlook 2018 unchanged

    Business Outlook 2018 unchanged  Vaisala continues to estimate its full year 2018 net sales to be in the range of EUR 330–350 million and its operating result (EBIT) to be in the range of EUR 35–45 million. MEUR Net sales MEUR Operating result 340 50 332.6 320 40 318.5 319.1 32.8* 40.9 300 30 299.7

  22. Slide 22: Questions Welcome!

    Questions Welcome! © Vaisala

  23. Slide 23: Appendix January–June 2018 financials

    Appendix January–June 2018 financials © Vaisala

  24. Slide 24: Vaisala January–June orders received decreased by 3%

    Vaisala January–June orders received decreased by 3%  Orders received EUR 158.3 (162.8) million, -3%  Orders increased in APAC but decreased in MEUR Americas and EMEA 400.0 346.3  Weather and Environment Business Area  EUR 98.6 (105.1) million, -6% 300.0 113.3 94.4 79.8 105.3  Orders low for we

  25. Slide 25: 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 1-6/18 EUR million 1-6/18 1-6/17 Change % 14% (14%) (16%) Products 97.1 98.3 -1 Projects 37.4 22.0 70 24% (20%) (15%) 62% Services 22.0 (65%) 22.9 -4 (69%) Net sales, total 156.4 143.2 9 At comparable 164

  26. Slide 26: January–June net sales increased in all geographical areas, geographical split stable

    January–June net sales increased in all geographical areas, geographical split stable % of net sales 1-6/18 EUR million 1-6/18 1-6/17 Change % 31% 29% EMEA 45.6 41.8 9 (29%) (29%) Americas 63.0 59.4 6 (41%) APAC 47.8 42.0 14 40% Total 156.4 143.2 9 EMEA Americas APAC Half Year Financial Report 2018

  27. Slide 27: January–June operating result 6.7% of net sales

    January–June operating result 6.7% of net sales  Operating result EUR 10.4 (7.7) MEUR million or 6.7 (5.3) of net sales  Net sales growth in both business 50 areas increased operating profit 40 12.3  Operating expenses EUR 69.3 (67.3) 30 9.3 million 8.8  Increase came mainly from R&D 20 7.0 6.6

  28. Slide 28: Weather and Environment January–June net sales increased by 12%

    Weather and Environment January–June net sales increased by 12% % of net sales 1-6/18 EUR million 1-6/18 1-6/17 Change % 16% (19%) Products 46.5 50.4 -8 47% Projects 37.4 22.0 70 (56%) Services 16.3 17.1 -5 37% (25%) Net sales, total 100.1 89.6 12 At comparable 104.5 89.6 17 exchange rates Products

  29. Slide 29: Weather and Environment January–June operating result margin slightly negative

    Weather and Environment January–June operating result margin slightly negative MEUR 1-6/18 1-6/17 74.4 70 Orders received, EUR million 98.6 105.1 58.3 52.0 Net sales, EUR million 100.1 89.6 49.3 48.1 50 40.3 Gross margin, % 44.7 46.0 30 Operating expenses, EUR million 45.1 44.3 14.0 10 7.1 Operating

  30. Slide 30: Industrial Measurements January–June net sales increased by 5%

    Industrial Measurements January–June net sales increased by 5% % of net sales 1-6/18 10% EUR million 1-6/18 1-6/17 Change % (10%) Products 50.6 47.9 6 Services 5.7 5.7 -1 (90%) Net sales, total 56.3 53.6 5 90% At comparable 60.3 53.6 12 exchange rates Products Services Half Year Financial Report 201

  31. Slide 31: Industrial Measurements January–June operating result 18.9% of net sales

    Industrial Measurements January–June operating result 18.9% of net sales MEUR 40 1-6/18 1-6/17 Orders received, EUR million 59.7 57.7 28.1 28.8 28.2 28.1 30 27.9 25.5 Net sales, EUR million 56.3 53.6 20 Gross margin, % 61.5 62.1 Operating expenses, EUR million 24.0 23.2 10 8.3 6.4 5.9 3.7 4.4 4.7 Op

  32. Slide 32: Share issue without payment (split)

    Share issue without payment (split)  Decided by the Annual General Meeting on April 10, 2018  One new share was issued for each share  New shares were issued April 13  Following the share split, Vaisala has 36,436,728 shares of which  6,778,662 series K shares  29,658,066 series A shares  On

  33. Slide 33: Observations for a Better World

    Observations for a Better World © Vaisala

Vaisala — Q2 2018 Earnings Presentation on 6ix