2013-02-05 08:30:00 CET
2013-02-05 08:31:16 CET
REGULATED INFORMATION
Vacon - Financial Statement Release
Vacon Plc Financial Statement Bulletin 1 January - 31 December 2012
Vacon Plc, Stock Exchange Release, 5 February 2013 at 9.30 pm (EET)
In this stock exchange release Vacon is publishing information that has a
significant impact on securities included in the financial statements. The full
financial statements are in the appendix to this release and can be downloaded
from the company's website in English at www.vacon.com and in Finnish at
www.vacon.fi.
October-December summary:
* Order intake totalled MEUR 94.4 (MEUR 76.9), an increase of 22.8 % from the
corresponding period in the previous year.
* Revenues totalled MEUR 103.2 (MEUR 87.6), growth of 17.8 %.
* Operating profit was MEUR 10.9, or 10.6 % of revenues, (MEUR -3.9 and -4.4
%).
* Operating profit excluding one-time items was MEUR 12.1, or 11.7 % of
revenues (MEUR 5.7 and 6.5 %).
* Net cash flow from operating activities was MEUR 15.1 (MEUR 6.2).
* Earnings per share were EUR 0.50 (EUR -0.18).
January-December summary:
* Order intake totalled MEUR 401.9 (MEUR 365.3), an increase of 10.0 % from
the corresponding period in the previous year.
* Revenues totalled MEUR 388.4 (MEUR 380.9), growth of 2.0 %.
* Operating profit was MEUR 37.7, or 9.7 % of revenues (EUR 24.7 and 6.5 %),
an increase of 52.3 %.
* Operating profit excluding one-time items was MEUR 36.2, or 9.3 % of
revenues (MEUR 34.8 and 9.1 %).
* Net cash flow from operating activities was MEUR 52.3 (MEUR 26.8).
* Earnings per share were EUR 1.70 (EUR 1.10), growth of 54.0 %.
* The Board of Directors proposes to the Annual General Meeting of
Shareholders that a dividend of EUR 1.10 per share be paid from the profit
for 2012.
Key indicators
October-December key indicators:
+-----------------------------------------+----------+----------+---------+
|MEUR |10-12/2012|10-12/2011|Change, %|
+-----------------------------------------+----------+----------+---------+
|Order intake | 94.4| 76.9| 22.8%|
+-----------------------------------------+----------+----------+---------+
|Revenues | 103.2| 87.6| 17.8%|
+-----------------------------------------+----------+----------+---------+
|Operating profit | 10.9| -3.9| |
+-----------------------------------------+----------+----------+---------+
|% of revenues | 10.6%| -4.4%| |
+-----------------------------------------+----------+----------+---------+
|Operating profit excluding one-time items| 12.1| 5.7| 112.8%|
+-----------------------------------------+----------+----------+---------+
|% of revenues | 11.7%| 6.5%| |
+-----------------------------------------+----------+----------+---------+
|Profit before taxes | 10.6| -1.4| |
+-----------------------------------------+----------+----------+---------+
January-December key indicators:
+-----------------------------------------+---------+---------+---------+
|MEUR |1-12/2012|1-12/2011|Change, %|
+-----------------------------------------+---------+---------+---------+
|Order intake | 401.9| 365.3| 10.0%|
+-----------------------------------------+---------+---------+---------+
|Order book | 50.0| 36.6| 36.9%|
+-----------------------------------------+---------+---------+---------+
|Revenues | 388.4| 380.9| 2.0%|
+-----------------------------------------+---------+---------+---------+
|Operating profit | 37.7| 24.7| 52.3%|
+-----------------------------------------+---------+---------+---------+
|% of revenues | 9.7%| 6.5%| |
+-----------------------------------------+---------+---------+---------+
|Operating profit excluding one-time items| 36.2| 34.8| 4.0%|
+-----------------------------------------+---------+---------+---------+
|% of revenues | 9.3%| 9.1%| |
+-----------------------------------------+---------+---------+---------+
|Profit before taxes | 36.8| 27.0| 36.5%|
+-----------------------------------------+---------+---------+---------+
|Net cash flow from operating activities | 52.3| 26.8| 95.0%|
+-----------------------------------------+---------+---------+---------+
|Earnings per share, EUR | 1.70| 1.10| 54.0%|
+-----------------------------------------+---------+---------+---------+
|Return on equity, % | 25.8%| 18.7%| |
+-----------------------------------------+---------+---------+---------+
|Interest-bearing net liabilities | -10.3| 12.4| |
+-----------------------------------------+---------+---------+---------+
|Gearing, % | -9.5%| 12.7%| |
+-----------------------------------------+---------+---------+---------+
|Gross capital expenditure | 14.0| 18,7| -25.3%|
+-----------------------------------------+---------+---------+---------+
Business environment and business development
According to initial market surveys and in Vacon's assessment, the AC drive
market did not grow significantly during 2012. The situation was most difficult
in Europe, where the market even declined from the previous year. The markets in
Asia and North America grew slightly from the previous year.
Vacon's revenues and orders increased in both the October-December quarter and
the January-December 2012 full year compared to the periods for comparison in
the previous year. The company's sales increased in 2012 especially in building
automation and the marine industry. In contrast sales for the generation of
solar energy and wind power fell sharply, accounting for only 3 % of the
company's revenues in 2012, compared to 13 % in 2011. During 2012 Vacon
succeeded in compensating for the fall in the sales of products for renewable
energy generation by increasing its sales to other industrial sectors, at the
same time raising its market share.
Vacon's revenues increased sharply in October-December and January-December
2012 in the Asia Pacific region (APAC). Sales in North and South America also
developed positively both in the October-December period and for the whole of
2012. Sales in the Europe, Middle East and Africa (EMEA) region rose in October-
December, but declined slightly for the whole of 2012 as the result of weak
demand for products for renewable energy generation and the general state of the
economy in the region. Full year revenues in the EMEA region grew slightly from
the previous year, if renewable energy is not included.
The company's profitability measured in terms of the operating profit percentage
improved both in October-December and in January-December 2012. Profitability
improved particularly in the second half of 2012. Vacon carried out several
measures in 2012 to improve profitability. The most important of these was the
transfer of material sourcing to low-cost countries. Last year 50 % of material
sourcing came from low-cost countries (40 % in 2011).
During the final quarter of the year Vacon continued its release of new products
with the launch of the VACON(®) 100 Flow product, which is the latest AC drive
in the VACON(®) 100 product range. It offers a wide range of flow control
functions for water and waste water treatment and for building automation
applications.
Vacon continued to strengthen its global standing in the fourth quarter of 2012
by establishing a regional centre in Singapore and a representative office in
Kazakstan.
Dividend proposal
At the end of the financial year the distributable equity of the parent company
stands at EUR 69.7 million. The Board of Directors proposes to the Annual
General Meeting of Shareholders to be held on 26 March 2013 that a dividend of
EUR 1.10 per share be paid from the parent company's profit for the 2012
financial year of EUR 20.5 million and the remainder of the profit for the year
be transferred to retained earnings. According to this proposal, a total of EUR
16.7 million would be paid in dividend.
Prospects for 2013
Vacon estimates that the global AC drive market will grow considerably faster
than average growth in industrial production, by an estimated 5-10 % in 2013.
Investments to improve energy efficiency and economic growth in developing
countries will support growth in demand for AC drives.
Vacon is well placed to improve its profitability in 2013. Key factors in
improving profitability are the cost benefit from transferring material sourcing
to low-cost countries and the development of overall efficiency in operations.
Market guidelines 2013
Vacon will continue the practice of announcing its market guidelines for the
whole year in its financial statement bulletin and repeating them in its interim
reports. The guidelines will be updated if the need arises.
Vacon estimates that its revenues will increase 5 - 15 % and that its operating
profit percentage excluding one-time items will be 10 - 12 % in 2013.
Revenues in 2012 totalled EUR 388.4 million and the operating profit percentage
excluding one-time items was 9.3 %.
Vacon's goal is to achieve revenues of EUR 500 million in 2014. Its
profitability target for 2014 is an operating profit of 14 %, and for return on
equity the target is more than 30 %.
Financial reports in 2013
Vacon is publishing three interim reports in 2013 as follows:
* January-March: 23 April 2013
* January-June: 1 August 2013
* January-September: 22 October 2013
Formal statement
This release contains certain forward-looking statements that reflect the
current views of the company's management. Due to the nature of these
statements, they contain risks and uncertainties and are subject to changes in
the general economic situation and in the company's business sector.
Vacon in brief
Vacon is driven by a passion to develop, manufacture and sell the best AC drives
and inverters in the world - and provide customers with efficient product
lifecycle services. Our AC drives offer optimum process control and energy
efficiency for electric motors. Vacon inverters play a key role when energy is
produced from renewable sources. Vacon has production and R&D facilities in
Europe, Asia and North America, and sales offices in 29 countries. Further,
Vacon has sales representatives and service partners in nearly 90 countries. In
2012, Vacon's revenues amounted to EUR 388.4 million, and the company employed
globally approximately 1,500 people. The shares of Vacon Plc (VAC1V) are quoted
on the main list of the Helsinki stock exchange (NASDAQ OMX Helsinki).
Driven by Drives, www.vacon.com
Vaasa, 5 February 2013
VACON PLC
Board of Directors
For more information please contact:
* Mr Vesa Laisi, President and CEO, phone: +358 (0)40 8371 510
* Ms Eriikka Söderström, CFO and Vice President, Finance & Control, phone:
+358 (0)40 8371 445
Conference for media and analysts
A briefing for the financial analysts and media will be held on 5 February 2013
at Pörssitalo, Fabianinkatu 14 A, 2nd floor, Helsinki (entrance via NASDAQ OMX
Helsinki's reception) at 11:30 am Finnish time (EET).
Dial-in conference for investors and investment analysts
A dial-in conference in for investors and investment analysts will be held at
3.00 pm (EET) on 5 February 2013. President and CEO Vesa Laisi and Eriikka
Söderström, CFO will participate in the conference. Please call
+358(0)9 2310 1620 (Finland Toll) or +44(0)20 3364 5381 (UK Toll) and request to
be connected to the Vacon call (Confirmation code 7253849). A recording of the
conference will be available for seven days at (0)9 2310 1650 (Finland Toll) or
(0)20 3427 0598 (UK Toll) or 347 366 9565 (US Toll) and access code 7253849.
* Conference link: http://www.media-server.com/m/p/87nc3dqc
The presentation material will be available before the media briefing on Vacon's
website at: www.vacon.com > Investors > Publications and releases.
DISTRIBUTION:
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Financial Supervisory Authority
Main Media
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