2015-02-12 13:00:00 CET
2015-02-12 13:00:54 CET
REGULATED INFORMATION
Vaisala - Financial Statement Release
Vaisala Corporation Financial Statement Release 2014
Vaisala Corporation
Financial Statement Release
February 12, 2015 at 2.00 p.m. (EET)
Vaisala Corporation Financial Statement Release 2014
January-December 2014 net sales increased by 10% to EUR 299.7 million and
operating result increased by 46% to EUR 26.4 million.
October-December 2014 highlights
* Orders received EUR 87.1 (82.7) million, increase 5%
* Order book EUR 129.2 (122.0) million, increase 6%
* Net sales EUR 95.7 (80.5) million, increase 19%
* Gross margin 52.5% (48.7%)
* Operating result EUR 14.9 (3.1) million, increase 388%
* Earnings per share EUR 0.73 (0.10)
* Cash and cash equivalents EUR 47.6 (45.8) million
January-December 2014 highlights
* Orders received EUR 295.0 (282.9) million, increase 4%
* Net sales EUR 299.7 (273.2) million, increase 10%
* Gross margin 51.1% (49.2%)
* Operating result EUR 26.4 (18.1) million, increase 46%
* Earnings per share EUR 1.30 (0.60)
* Cash flow from operating activities EUR 23.8 (28.2) million
* Dividend paid EUR 16.2 (16.2) million
* Vaisala's Board of Directors is proposing a dividend of EUR 0.90 per share
(0.90 per share in 2013)
* Business outlook for 2015: Vaisala estimates its full year 2015 net sales to
be in the range of EUR 285-315 million and the operating result (EBIT) in
the range of EUR 20-30 million
Vaisala's President and CEO Kjell Forsén"In the fourth quarter of 2014, our net sales were record high EUR 95.7 million
and grew 19% year-on year. Excellent growth was achieved both in Controlled
Environment Business Area increasing 24% as well as in Weather Business Area
increasing 17%. Net sales increased in all geographical areas but the most in
APAC, 33%. Both business areas benefited from great delivery performance and
consistent quality. Also orders received increased by 5% to EUR 87.1 million. As
a result of high volumes the gross margin improved to 52.5%. Operating result
developed positively and was EUR 14.9 million or 15.6% of net sales.
After a slow start of the year, Vaisala performed well in 2014 despite
challenging market conditions. Our order intake was strong throughout the year
and order book at the end of the year achieved EUR 129.2 million. Net sales
growth was very strong during the second half of the year reaching highest ever
full year net sales of EUR 299.7 million. Vaisala net sales increased 10% from
2013 and the growth was equally good in both business areas. The integration of
the acquired businesses, 3TIER and Second Wind did progress well but the sales
performance did not yet meet our expectations. Controlled Environment Business
Area's net sales growth was strongest in the Life Science customer group. The
changes implemented in Controlled Environment Business Area's operating model a
year ago have proven to bring expected results and business has returned to
growth track.
Our net sales in 2014 grew in all geographical areas and especially in APAC and
EMEA. Our gross margin improved by almost two percent points to 51.1% as a
result of volume growth and related scale economies. The operating result was
EUR 26.4 million, increasing 46% which is quite an achievement taking into
account higher investments in R&D in both business areas as well as in the sales
force in Controlled Environment Business Area.
I want to thank all Vaisala employees for the excellent result which was
achieved by strong and competent teams, excellent co-operation and driving
continuous renewal.
The market conditions that Vaisala faces in different markets vary
significantly. Competition in weather observation market is expected to continue
intensifying. The market for industrial measurement and life science solutions
is expected to remain favorable in Americas and other markets to continue flat.
The Russian economy is expected to continue weakening. The Chinese market is
expected to be somewhat slow during 2015.
On January 27, 2015, we announced our plans to restructure our business in order
to strengthen the capability to implement our strategy and to increase agility.
An integral part of our strategy is to drive efficiency through simplification
both in the way we operate and develop our organization. By the planned
consolidation of Weather Business Area into three business units and by making
services an integral part of our Weather Business Area we can increase both our
efficiency and customer focus. Controlled Environment Business Area is planned
to be organized around three regions with full business responsibility. The aim
is to increase customer focus and agility in this fast moving business. This
will be further enhanced by accelerated portfolio renewal. The planned
restructuring is a vital part of our strategy implementation aiming to reach our
long-term financial targets.
We estimate our full year 2015 net sales to be in the range of EUR 285-315
million and the operating profit (EBIT) in the range of EUR 20-30 million.
Key Figures
10-12/ 10-12/ 1-12/ 1-12/
2014 2013 2014 2013
---------------------------------------------------------------------------
Orders received, EUR million 87.1 82.7 295.0 282.9
Order book, EUR million 129.2 122.0 129.2 122.0
Net sales, EUR million 95.7 80.5 299.7 273.2
Gross profit, EUR million 50.2 39.2 153.1 134.3
Gross margin, % 52.5 48.7 51.1 49.2
Operating expenses, EUR million 35.4 31.8 127.2 113.6
Operating result, EUR million 14.9 3.1 26.4 18.1
Operating result, % 15.6 3.8 8.8 6.6
Profit (loss) before taxes, EUR million 15.7 2.8 29.1 17.2
Profit (loss) for the period, EUR million 13.1 1.8 23.4 10.9
Earnings per share, EUR 0.73 0.10 1.30 0.60
Cash flow from operating activities, EUR million 15.0 12.0 23.8 28.2
Capital expenditure, EUR million 2.1 1.3 7.9 7.1
Depreciation, EUR million 4.0 3.7 15.2 14.8
Return on equity, % 14.3 6.3
Cash and cash equivalents, EUR million 47.6 45.8 47.6 45.8
---------------------------------------------------------------------------
Market situation in October-December 2014
Reasonably good weather observation market conditions continued. Market
conditions for industrial measurement and life science solutions developed
favorably. Depreciation of euro contributed positively on Vaisala's financial
performance.
In EMEA weather observation market conditions remained solid, although economic
weakness and currency depreciation in Russia and its neighboring countries
weakened demand in the area. Also conflicts in the Middle East had an
unfavorable impact on local weather observation market activity. Demand for
industrial measurement and life science solutions improved.
In Americas weather observation market remained active, driven by the U.S.
governmental customers. Market environment for industrial measurement and life
science solutions was favorable.
In APAC weather observation market remained stable, although development in
China expressed signs of moderation. Market environment for industrial
measurement and life science solutions improved slightly.
October-December 2014 performance
Orders received
EUR million 10-12/2014 10-12/2013 Change, % 2014 2013
-------------------------------------------------------------------
Weather 65.4 64.1 2 215.2 208.3
Controlled Environment 21.7 18.6 17 79.8 74.6
-------------------------------------------------------------------
Total 87.1 82.7 5 295.0 282.9
-------------------------------------------------------------------
Order book
EUR million 10-12/2014 10-12/2013 Change, % 2014 2013
-------------------------------------------------------------------
Weather 123.7 116.2 7 123.7 116.2
Controlled Environment 5.5 5.8 -5 5.5 5.8
-------------------------------------------------------------------
Total 129.2 122.0 6 129.2 122.0
-------------------------------------------------------------------
In October-December 2014, orders received were EUR 87.1 (82.7) million and
increased by 5% compared to the previous year. The growth came mainly from APAC
where we received one big order for six weather radars for the value of EUR 8.9
million. Weather Business Area's orders received were EUR 65.4 (64.1) million
and increased by 2%. The growth came from all customer groups except Meteorology
and New Weather Markets. During the fourth quarter of 2014, Vaisala signed a
contract to deliver six weather radars to its long-term customer in APAC. The
deliveries start in 2016 and will be completed by the end of 2018. The value of
the contract is EUR 8.9 million. Controlled Environment Business Area's orders
received were EUR 21.7 (18.6) million and increased by 17%. The growth came from
both customer groups.
The order book was EUR 129.2 (122.0) million at the end of December and
increased by 6% compared to end of December 2013. Of the order book EUR 55.1
(39.4) million will be delivered in 2016 or later. The order book includes also
a positive correction of EUR 11.9 million to opening order books of 3TIER Inc.
and Second Wind Systems Inc., which were acquired during the second half of
2013.
Net sales by business area
EUR million 10-12/2014 10-12/2013 Change, % 2014 2013
---------------------------------------------------------------------------
Weather 73.3 62.4 17 219.6 200.0
Controlled Environment 22.3 18.0 24 80.2 73.2
---------------------------------------------------------------------------
Total 95.7 80.5 19 299.7 273.2
---------------------------------------------------------------------------
Net sales by geographical area
EUR million 10-12/2014 10-12/2013 Change, % 2014 2013
---------------------------------------------------------------------------
EMEA 35.8 29.0 24 111.8 98.6
Americas 36.2 33.9 7 112.1 107.8
APAC 23.7 17.8 33 75.9 66.9
---------------------------------------------------------------------------
Total 95.7 80.5 19 299.7 273.2
---------------------------------------------------------------------------
In October-December 2014, Vaisala's net sales were EUR 95.7 (80.5) million and
increased by 19% compared to the previous year. Weather Business Area's net
sales were EUR 73.3 (62.4) million and increased by 17%. The growth came from
all customer groups except Airports. Weather Business Area's net sales increased
in all geographical areas except in Americas. Controlled Environment Business
Area's net sales were EUR 22.3 (18.0) million and increased by 24%. The growth
came from both customer groups, especially from Life Science customer group.
Controlled Environment Business Area improved its net sales in all geographical
areas.
In October-December 2014, net sales in EMEA were EUR 35.8 (29.0) million and
increased by 24% compared to the previous year, in the Americas EUR 36.2 (33.9)
million and increased by 7% and in APAC EUR 23.7 (17.8) million and increased by
33%.
At comparable exchange rates the net sales would have been EUR 92.5 (80.5)
million and increase would have been EUR 12.0 million or 15% from previous year.
The positive exchange rate effect was EUR 3.2 million, which was mainly caused
by USD exchange rate fluctuations.
Gross margin was 52.5% (48.7%). The increase was mainly due to increased net
sales and related decrease in unit costs due to improved scale economies.
Operating result
EUR million 10-12/2014 10-12/2013 Change, % 2014 2013
-----------------------------------------------------------------
Weather 12.7 7.6 66 17.0 14.5
Controlled Environment 3.9 -3.5 212 12.1 4.0
Eliminations and other -1.7 -1.1 -62 -2.8 -0.4
-----------------------------------------------------------------
Total 14.9 3.1 388 26.4 18.1
-----------------------------------------------------------------
In October-December 2014, operating result was EUR 14.9 (3.1) million. The
increase was mainly due to increased net sales and better gross margins in both
business areas, whereas operating result for the fourth quarter of 2013
decreased due to the impairment charge of EUR 4.3 million recognized in
Controlled Environment Business Area. The impairment charge was related to
goodwill and intangible assets originating from the acquisition of Veriteq
Instruments Inc. in 2010. Operating expenses were EUR 35.4 (31.8) million and
increased by 12% compared to the previous year. The increase was mainly due to
investments in R&D related to new offering development and renewing instrument
portfolio as well as higher bonuses as a result of good performance during the
fourth quarter.
Profit before taxes was EUR 15.7 (2.8) million for the period of October-
December 2014. Income taxes were EUR 2.5 (1.0) million. Net result was EUR 13.1
(1.8) million.
Earnings per share for October-December 2014 were EUR 0.73 (0.10).
Market situation in 2014
Macroeconomic conditions started to improve in the second half of 2013, and this
was gradually reflected in weather observation, industrial measurement and life
science solution markets during 2014. Both Vaisala's business areas increased
their net sales in all geographic areas during 2014.
In EMEA weather observation market conditions were solid, especially European
market performed well. Economic weakness and currency depreciation in Russia as
well as conflicts in the Middle East had an unfavorable impact on weather
observation market activity in these regions. Demand for industrial measurement
and life science solutions improved towards the end of the year.
In Americas weather observation market was still suffering from repercussions of
USA government budget sequestration measures during the first half of 2014.
However, market activity improved significantly during the second half of the
year. Also industrial measurement and life science solutions market started to
pick up in the end of first half of the year and business environment of second
half was favorable.
In APAC weather observation market remained active, although signs of cooling
off were registered in China in the second half of 2014. Demand for industrial
measurement and life science solutions improved towards the end of the year.
January-December 2014 performance
Orders received
EUR million 2014 2013 Change, %
---------------------------------------------
Weather 215.2 208.3 3
Controlled Environment 79.8 74.6 7
---------------------------------------------
Total 295.0 282.9 4
---------------------------------------------
Order book
EUR million 2014 2013 Change, %
---------------------------------------------
Weather 123.7 116.2 7
Controlled Environment 5.5 5.8 -5
---------------------------------------------
Total 129.2 122.0 6
---------------------------------------------
In January-December 2014, orders received were EUR 295.0 (282.9) million and
increased by 4% compared to the previous year. The growth came mainly from APAC
and Europe. Weather Business Area's orders received were EUR 215.2 (208.3)
million and increased by 3%. The growth came from all other customer groups
except Meteorology. Controlled Environment Business Area's orders received were
EUR 79.8 (74.6) million and increased by 7%. Orders received increased in both
customer groups.
The order book was EUR 129.2 (122.0) million at the end of December and
increased by 6% compared to end of December 2013. Of the order book EUR 55.1
(39.4) million will be delivered in 2016 or later. The order book includes also
a positive correction of EUR 11.9 million to opening order books of 3TIER Inc.
and Second Wind Systems Inc., which were acquired during the second half of
2013.
Net sales by business area
EUR million 2014 2013 Change, %
-----------------------------------------------------
Weather 219.6 200.0 10
Controlled Environment 80.2 73.2 9
-----------------------------------------------------
Total 299.7 273.2 10
-----------------------------------------------------
Net sales by geographical area
EUR million 2014 2013 Change, %
-----------------------------------------------------
EMEA 111.8 98.6 13
Americas 112.1 107.8 4
APAC 75.9 66.9 14
-----------------------------------------------------
Total 299.7 273.2 10
-----------------------------------------------------
In January-December 2014, Vaisala's net sales were EUR 299.7 (273.2) million and
increased by 10% compared to the previous year. Weather Business Area's net
sales were EUR 219.6 (200.0) million and increased by 10%. The growth came from
all customer groups except Airports. Weather Business Area improved its net
sales in project and services businesses and in all geographical areas.
Controlled Environment Business Area's net sales were EUR 80.2 (73.2) million
and increased by 9%. The growth came from both customer groups and from all
geographical areas.
In January-December 2014, net sales in EMEA were EUR 111.8 (98.6) million and
increased by 13% compared to the previous year, in the Americas EUR 112.1
(107.8) million and increased by 4% and in APAC EUR 75.9 (66.9) million and
increased by 14%.
At comparable exchange rates the net sales would have been EUR 300.7 (273.2)
million and increase would have been EUR 27.5 million or 10% from previous year.
The negative exchange rate effect was EUR 1.0 million, which was mainly caused
by JPY and AUD exchange rate fluctuations.
Operations outside Finland accounted for 97% (97%) of net sales.
Gross margin was 51.1% (49.2%). The increase was mainly due to decreased unit
costs, which is a result of increased net sales and related scale economies as
well as further optimized supply chain.
Operating result
EUR million 2014 2013 Change, %
-------------------------------------------
Weather 17.0 14.5 17
Controlled Environment 12.1 4.0 201
Eliminations and other -2.8 -0.4 -576
-------------------------------------------
Total 26.4 18.1 46
-------------------------------------------
In January-December 2014, operating result was EUR 26.4 (18.1) million. The
increase was mainly due to increased net sales and better gross margins in both
business areas, whereas operating result for 2013 decreased due to the
impairment charge of EUR 4.3 million recognized in Controlled Environment
Business Area. The impairment charge was related to goodwill and intangible
assets originating from the acquisition of Veriteq Instruments Inc. in 2010.
Operating expenses were EUR 127.2 (113.6) million and increased by 12% compared
to the previous year. The increase was mainly due to consolidation of operating
expenditures of 3TIER Inc. and Second Wind Systems Inc., which were acquired
during the second half of 2013 as well as investments in R&D related to new
offering development and renewing instrument portfolio.
Financial income and expenses were EUR 2.6 (-1.0) million for the period of
January-December 2014. The increase is mainly due to foreign exchange gains
related to valuation of USD denominated receivables.
Profit before taxes was EUR 29.1 (17.2) million for the period of January-
December 2014. Income taxes were EUR 5.7 (6.2) million. Effective tax rate of
19.5% (36.4%) is lower than in previous year because income tax rate in Finland
changed from 24.5% to 20% and reassessment of deferred tax assets. Effective tax
rate of 2013 was also high mainly due to non-tax deductibility of the impairment
charge of EUR 4.3 million recognized in Controlled Environment Business Area.
Net result was EUR 23.4 (10.9) million.
Earnings per share for January-December 2014 were EUR 1.30 (0.60).
Statement of financial position and cash flow
Vaisala's financial position remained strong at the end of the December 2014.
Cash and cash equivalents amounted to EUR 47.6 (45.8) million at the end of
December 2014 and Vaisala did not have any material interest bearing
liabilities.
The statement of financial position total was EUR 244.6 (225.6) million. The
solvency ratio at the end of the December 2014 was 71% (72%).
In January-December 2014, Vaisala's cash flow from operating activities was EUR
23.8 (28.2) million. The decrease was mainly due to cash tied in working
capital, as high net sales at the end of 2014 increased accounts receivable and
component purchases for long life cycle products increased the inventory.
Capital expenditure
Gross capital expenditure totaled EUR 7.9 (7.1) million for January-December
2014. Depreciation was EUR 15.2 (14.8) million.
Weather Business Area
EUR million 10-12/2014 10-12/2013 Change, % 2014 2013 Change, %
-----------------------------------------------------------------------
Orders received 65.4 64.1 2 215.2 208.3 3
Order book 123.7 116.2 7 123.7 116.2 7
Net sales, total 73.3 62.4 17 219.6 200.0 10
Products 30.3 27.4 10 92.1 97.3 -5
Projects 29.8 24.3 23 83.8 70.0 20
Services 13.3 10.7 24 43.7 32.7 34
Operating result 12.7 7.6 66 17.0 14.5 17
-----------------------------------------------------------------------
In January-December 2014, Weather Business Area's orders received were EUR
215.2 (208.3) million and increased by 3% compared to the previous year. Orders
increased in all other customer groups except in Meteorology. The order book was
EUR 123.7 (116.2) million at the end of December and increased by 7% compared to
end of December 2013. Of the order book EUR 53.7 (39.1) million will be
delivered in 2016 or later.
During the fourth quarter of 2014, Vaisala signed a contract to deliver six
weather radars to its long-term customer in APAC. The deliveries start in 2016
and will be completed by the end of 2018. The value of the contract is EUR 8.9
million.
In January-December 2014, Weather Business Area's net sales were EUR 219.6
(200.0) million and increased by 10% compared to the previous year. The growth
came from all customer groups except Airports. The highest growth came from New
Weather Markets customer group. Weather Business Area improved its net sales in
project and services businesses and in all geographical areas. At comparable
exchange rates the net sales would have been EUR 219.4 (200.0) million and
increase would have been EUR 19.4 million or 10% from previous year. The
positive exchange rate effect was EUR 0.2 million, which was mainly caused by
USD and GBP exchange rate fluctuations.
In January-December 2014, Weather Business Area's operating result was EUR 17.0
(14.5) million and increased by 17% compared to the previous year. The increase
was due to improved net sales and gross margins. Operating expenses increased
compared to the previous year mainly due to consolidation of operating
expenditures of 3TIER Inc. and Second Wind Systems Inc., which were acquired
during the second half of 2013 as well as investments in R&D related to new
offering development and renewing instrument portfolio.
Controlled Environment Business Area
EUR million 10-12/2014 10-12/2013 Change, % 2014 2013 Change, %
---------------------------------------------------------------------
Orders received 21.7 18.6 17 79.8 74.6 7
Order book 5.5 5.8 -5 5.5 5.8 -5
Net sales, total 22.3 18.0 24 80.2 73.2 9
Products 19.8 15.5 27 70.7 64.2 10
Services 2.6 2.5 3 9.4 9.0 5
Operating result 3.9 -3.5 212 12.1 4.0 201
---------------------------------------------------------------------
In January-December 2014, Controlled Environment Business Area's orders received
were EUR 79.8 (74.6) million and increased by 7% compared to the previous year.
Orders received increased in both customer groups. At the end of December 2014
the order book was EUR 5.5 (5.8) million and decreased by 5% compared to the
previous year. Of the order book EUR 1.4 (0.3) million will be delivered in
2016 or later.
In January-December 2014, Controlled Environment Business Area's net sales were
EUR 80.2 (73.2) million and increased by 9% compared to the previous year. Net
sales increased in both customer groups, mainly in Life Science. Net sales
increased in all geographical areas. At comparable exchange rates the net sales
would have been EUR 81.4 (73.2) million and increase would have been EUR 8.2
million or 11% from previous year. The negative exchange rate effect was EUR
1.2 million, which was mainly caused by JPY exchange rate fluctuations.In January-December 2014, Controlled Environment Business Area's operating
result was EUR 12.1 (4.0) million and increased by 201% compared to the previous
year. The increase was mainly due to improved net sales and gross margins,
whereas operating result for 2013 decreased due to the impairment charge of EUR
4.3 million. The impairment charge was related to goodwill and intangible assets
originating from the acquisition of Veriteq Instruments Inc. in 2010. Operating
expenses increased compared to the previous year mainly due to higher sales and
marketing expenses as well as investments in R&D related to new offering
development.
Research and development
In January-December 2014, research and development (R&D) expenses amounted to
EUR 34.0 (28.9) million, representing 11.3% (10.6%) of net sales. The increase
was mainly due to R&D expenses of the acquired companies, as well as investments
in new offering development and renewing instrument portfolio.
10-12/ 10-12/ Change, Change,
EUR million 2014 2013 % 2014 2013 %
---------------------------------------------------------------
Weather 7.3 6.0 20 25.7 22.4 15
Controlled Environment 2.1 1.9 9 8.2 6.5 27
---------------------------------------------------------------
Total 9.4 8.0 17 34.0 28.9 18
---------------------------------------------------------------
Weather Business Area R&D expenses were 11.7% (11.2%) of net sales. Controlled
Environment Business Area R&D expenses were 10.3% (8.9%) of net sales.
Key releases
Vaisala made several product and software releases in 2014 and the most
important ones are listed below. More details concerning the new products and
software can be found at www.vaisala.com.
Weather business continued the 4th generation soundings release program by
launching ozone sounding capability for RS41 radiosonde and a new model RS41-
SGP, which includes pressure sensor for direct atmospheric pressure measurement.
In Weather radars the new antenna mounted receiver AMR enables customers to
upgrade existing single polarization weather radar to dual polarization by
installing one compact unit. Vaisala launched also IRIS Vision, a new, easy to
use web display for weather radars. Other key software launches for Weather
business were Avicast, a decision support system for airports, Observation
Network Manager NM10, which enables customers to easily monitor their weather
observation network and a new version of RoadDSS, a decision support system for
road maintenance. RoadDSS was followed by first RWS200 launch. RWS200 is a new
flexible weather station for Vaisala road maintenance customers.
Controlled Environment business area launched a heat sterilization durable
instrument, the GMP231, with CARBOCAP® technology for measuring chamber and
incubator carbon dioxide levels. GMP231 can resist temperatures as high as 180
degrees of Celsius making it optimal for environments where heat sterilization
is needed. Also, HMM105 - a HUMICAP® powered digital humidity module for OEM
applications - was launched for the same application and can be integrated to
environmental chambers and incubators for measuring the humidity for example in
microbiological environments. For building automation market Vaisala launched
the Vaisala HUMICAP® HMDW110 Series Humidity and Temperature Transmitters. The
HMDW110 series transmitters feature high measurement accuracy and are intended
for demanding heating, ventilation and air conditioning systems and life
sciences cleanroom applications. For hand-held instrument market Vaisala
launched HM42/46 models for popular HM40 hand-held humidity and temperature
meter.
Personnel
Vaisala's competence development is steered by business strategies. Vaisala
continued to invest in digitalization capabilities and competencies to further
improve customer experience especially in Vaisala's online services and customer
communication activities. Customer and application knowledge has increasing
importance for Vaisala strategy implementation. To support the capability to
argument customer value of solutions we continued to execute Vaisala tailored
Value-selling training sessions. Renewable energy industry competence has been
mainly developed through acquisitions and recruitments.
Vaisala's approach to competence development combines internal and external
learning programs, co-operation with universities and researchers, job-rotation,
international assignments, mentoring and coaching processes. In 2014 Vaisala
launched a comprehensive e-learning platform to complement other learning
initiatives. Vaisala online eLearning environment hosts currently over 40
interactive modules.
LEAD program for managers and Expert Lead program for key experts focused on
further developing Vaisala's leadership and collaboration culture and
competences. The ninth global Vaisala Business Learning Program started in fall
2014 extending leadership skills especially in strategy, customer focus and
financial performance. Quality Lead training was launched for all Vaisala
managers in May 2014. Cross-functional Reliable Customer Experience workshops in
all Vaisala offices enhanced customer focused mindset and process thinking.
Aligned with 'Well-being at work' theme all Finland based managers participated
in an interactive training session. Occupational Health and Safety Awareness
training was renewed during the year 2014.
Global values dialogue process started after the strategy renewal was finalized
in May 2014. All Vaisala employees were invited to discuss Vaisala's values in
online and team sessions. Vaisala's values are Customer Focus, Innovation and
Renewal, Strong Together, and Integrity.
On December 31, 2014, the number of Group employees was 1,613 (December
31, 2013: 1,563). The average number of personnel employed in Vaisala in
January-December 2014 was 1,617 (1,485). The number of employees increased due
to strengthening the company's research and development as well as sales
activities.
On December 31, 2014, 64% (66%) of employees were located EMEA, 27% (25%) in the
Americas and 9% (9%) in APAC. 43% (41%) of employees were based outside Finland.
At the end of the year 22% (19%) of employees were employed in the company's
research and development activities.
December 31, 2014 December 31, 2013 Change, %
-----------------------------------------------------------------------
Finland 917 893 3
EMEA (excluding Finland) 123 120 3
Americas 438 428 2
APAC 135 122 11
-----------------------------------------------------------------------
Total 1,613 1,563 3
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Share-based incentive plans
On May 3, 2012 the Board of Directors resolved for the Group key employees a
share-based incentive plan that is based on the development of Group's
profitability in calendar year 2012 and it will be paid partly in the Company's
series A shares and partly in cash in spring 2015. The cash proportion will
cover taxes and tax-related costs arising from the reward to a key employee. No
reward will be paid, if a key employee's employment or service ends before the
reward payment date. Maximum amount corresponding to 142,200 shares will be paid
depending on the number of entitled persons in the company at the end of vesting
period. In 2014 EUR 0.7 million and in 2013 EUR 0.6 million was expensed for the
share-based incentive plan (EUR 0.4 million in 2012).
On February 6, 2013 the Board of Directors resolved for the Group key employees
a share-based incentive plan that is based on the development of Group's
profitability in calendar year 2013 and it will be paid partly in the Company's
series A shares and partly in cash in spring 2016. The cash proportion will
cover taxes and tax-related costs arising from the reward to a key employee. No
reward will be paid, if a key employee's employment or service ends before the
reward payment date. Maximum amount corresponding to 150,000 shares will be paid
depending on the number of entitled persons in the company at the end of vesting
period. In 2013 no expense was recognized as the criteria was not met.
On February 10, 2014 the Board of Directors resolved for the Group key employees
a share-based incentive plan that is based on the development of Group's
profitability in calendar year 2014 and it will be paid partly in the Company's
series A shares and partly in cash in spring 2017. The cash proportion will
cover taxes and tax-related costs arising from the reward to a key employee. No
reward will be paid, if a key employee's employment or service ends before the
reward payment date. Maximum amount corresponding to 147,000 shares will be paid
depending on the number of entitled persons in the company at the end of vesting
period. In 2014 EUR 0.2 million was expensed for the share-based incentive plan.
The total personnel expenses in 2014 were EUR 116.3 (104.7) million.
Changes in group structure
Vaisala's headquarters are located in Vantaa, Finland. On December 31, 2014, the
company has subsidiaries in Australia, Brazil, Canada, China, Germany, France,
India, Japan, Malaysia, United Kingdom and United States. Further, the company
has permanent establishments in Sweden and Kuwait, and regional offices in
India, South Korea and the United Arab Emirates. The subsidiary in Panama was
liquidated during 2014. Subsidiary in United Kingdom 3TIER (Europe) Limited was
merged to Vaisala Limited and subsidiaries in United States 3TIER Inc. and
Second Wind Systems Inc. were merged to Vaisala Inc.
Vaisala 2014-2018 strategy and long-term financial targets
Vaisala's Board of Directors confirmed the 2014-2018 strategy in May 12, 2014.
Vaisala's goal of profitable growth will be achieved through the implementation
of the strategic themes: creation of customer value, reliability, and
simplification.
In Weather Business Area additional customer value will be created by building
new business around decision support services that are offered to renewable
energy, aviation and roads customers. Controlled Environment Business Area will
focus on enhancing offering and developing the sales channel for life science
and industrial customers in order to create value for customers' operations.
Reliability will create customer satisfaction and loyalty. High quality of
products and services, well-functioning customer service and on-time actions
will deliver reliable customer experience.
Simplification will create operational efficiency. Optimized global networks,
streamlined supply chains, common capabilities and continual improvement in all
functions will ensure increased efficiency of Vaisala's operations.
Vaisala's long-term financial targets
Growth: Vaisala targets an average annual growth of 5%. In selected growth
businesses such as renewable energy and life science the target is to exceed
10% annual growth.
Profitability: Vaisala's objective is profitable growth and the target is to
achieve 15% operating profit (EBIT) margin towards the end of the period.
Vaisala does not consider the long-term financial targets as market guidance for
any given year.
Implementation of the strategy in 2014
Growth is driven through Creation of Customer Value
In 2014, Vaisala continued the investments in strategic growth areas in Weather
and Controlled Environment Business Areas according to the strategy. Vaisala
also increased the R&D spending by EUR 5 million to 11.3% of net sales to
support the growth initiatives, to renew the portfolio and to improve
competitiveness.
Weather Business Area continued to build new business around information
services to be offered to renewable energy, aviation, and roads customers.
In 2013, Vaisala acquired two companies, 3TIER Inc. and Second Wind Systems
Inc., to take a leap forward in Weather Business Area's renewable energy
strategy. Year 2014 focused on building a solid basis for the renewable energy
business by redefining unit's strategy and most importantly the integration and
alignment between the three organizations. Building new offering and gaining
industry acceptance of the existing product portfolio progressed well as Vaisala
continued to gain industry recognition. Vaisala had a good progress in
strengthening its presence in focused countries, however, the sales performance
did not yet meet the set expectations.
Other initiatives for the information service strategy implementation progressed
well and Vaisala signed first contracts for aircraft deicing optimization with
three airlines in Europe and USA.
In 2014, Vaisala launched several new advanced products and software for the
weather markets to enhance growth as well as to replace existing products. The
main launches were a completely renewed road weather station, RWS200, combined
with sophisticated decision support software. Another key launch was a new
antenna-mounted receiver for weather radars that allows customers to upgrade,
rather than completely replace, their existing single-polarization weather
radars into modern dual-polarization radars.
Controlled Environment Business Area continued to accelerate growth in the
industrial businesses; targeted industrial applications and life science by
enhancing the offering and developing the sales channel. Controlled Environment
Business Area invested in regional expansion by contracting new distributors in
over 10 countries with high industrial potential. Vaisala's instruments are now
available to current and new customers through the company's own sales channels,
local distributors as well as the online store which is currently available in
close to 100 countries around the world.
Vaisala built industrial business also by driving growth in life science
monitoring systems. Industrial instruments were provided to wide variety of
industries and new products were introduced e.g. for the building automation
industry amending the portfolio with new generation products incorporating the
new generation Vaisala CarboCap carbon dioxide sensing technology.
Reliability and Simplification drive improved customer satisfaction and
efficiency
In 2014, Vaisala continued its efforts to improve the quality and delivery
capabilities of products and services to fulfill the high customer expectations.
The main actions included development of the quality of product design,
manufacturing and service deliveries. Special attention was paid to corrective
and preventive actions to improve quality of subcontractor deliveries.
Vaisala continued its efforts also in on-time delivery accuracy and reduction of
lead times throughout a variety of products, projects and services. Good
progress was achieved by utilizing lean practices to improve the end-to-end
material flow and throughput time of deliveries. Delivery times are especially
important for Vaisala's many industrial customers.
Vaisala also continued its actions to improve and optimize ERP system, core
processes, global supply and delivery networks.
Sustainable development
Vaisala is in a unique position to promote sustainable development through the
technologies it offers to its customers. Through its weather solutions, Vaisala
safeguards lives and property and reduces environmental impacts. Industrial
instruments bring efficiencies and reduce energy and material consumption in
customer operations.
Vaisala pays special attention to the objectives of UN Global Compact in the
areas of human and labor rights, the environment, and anti-corruption. For
Vaisala sustainability is more than just reducing our own impacts. It is about
giving our customers tools to succeed in their sustainability actions. On a
grander scale Vaisala provides means for assessing the state of the environment
and climate. Based on this strategic approach Vaisala was awarded a position on
CDP's (formerly the Carbon Disclosure Project) prestigious A list of the Global
Climate Performance Leadership Index (Global CPLI) and on the Nordic Climate
Disclosure Leadership Index (CDLI). The performance score assesses the level of
action on climate change mitigation, adaptation and transparency. Vaisala was
assessed under Information technology sector, which is widely understood to be
one of the fundamental driving forces of change in the business and consumer
societies. Delivering innovation to meet product efficiency regulations is
another well-reported opportunity which Vaisala is demonstrating through its
technology, solution and product offering.
Further information about Vaisala's sustainability is available on the company
website at www.vaisala.com/sustainability.
Significant risks and uncertainties
Vaisala's business is exposed to changes in the global economy, politics,
conflicts, policies, regulations, Vaisala's supply chain and distribution
channels, and accidents as well as natural disasters and epidemics, which may
affect business e.g. through order cancellations, disturbance in logistics,
travel restrictions, and loss of market potential. Vaisala's capability to
successfully complete investments, acquisitions, divestments and restructurings
on a timely basis and to achieve related financial and operational targets
represent a risk which may impact revenue and profitability.
The most significant near-term risks and uncertainties that may affect both
revenue and profitability relate to the company's ability to maintain its
delivery capability, availability of critical components, interruptions in
manufacturing or IT systems, changes in the global economy, western sanctions
against Russia, spreading of epidemics, continuing conflicts in the Middle East
and Africa, currency exchange rates, customers' financing capability, changes in
customers' purchasing or investment behavior, and delays or cancellations of
orders. Changes in the competition may affect the volume and profitability of
business through introduction of new competitors and price erosion in areas
which traditionally have been strong for Vaisala. Changes in subcontractor
relations, their operations or operating environment as well as the quality of
the deliverables may have a negative impact on Vaisala's business.
A significant part of Vaisala's business is project business. Project business
performance and schedules have dependencies to third parties, which may impact
profitability and timing of revenue recognition. Assumptions regarding new
project and service business opportunities constitute a risk for both revenue
and profitability.
The importance of information services and decision support systems is
increasing in Vaisala's weather business. These Internet-based online services
are potential subjects to a variety of cyber risks.
Decisions by Vaisala Corporation's Annual General Meeting
Annual General Meeting was held on Wednesday, March 26, 2014 at Vaisala's head
office in Finland. The meeting approved the financial statements and discharged
the members of the Board of Directors and the President and CEO from liability
for the financial period January 1-December 31, 2013.
Dividend
The Annual General Meeting decided a dividend of EUR 0.90 per share,
corresponding to the total of EUR 16,253,292.60. The record date for the
dividend payment was March 31, 2014 and the payment date was April 7, 2014.
Remuneration of the members of the Board of Directors
The Annual General Meeting decided that the annual fee payable to the Board
members for the term until the close of the Annual General Meeting in 2015 is:
the Chairman of the Board of Directors EUR 45,000 and each Board member EUR
35,000. Approximately 40 percent of the annual remuneration will be paid in
Vaisala Corporation's A shares acquired from the market and the rest in cash.
In addition, the Annual General Meeting decided that the compensation per
attended meeting for the Chairman of the Audit Committee is EUR 1,500 and EUR
1,000 for each member of the Audit Committee for the term until the close of the
Annual General Meeting in 2015. The compensation per attended meeting for the
Chairman and each member of the Remuneration and HR Committee and any other
committee established by the Board of Directors is EUR 1,000 for the term until
the close of the Annual General Meeting in 2015.
Composition of the Board of Directors
The Annual General Meeting confirmed that the number of Board members is seven.
Mikko Niinivaara and Raimo Voipio were re-elected for the term until the close
of the Annual General Meeting in 2017. Petra Lundström and Pertti Torstila were
elected as new members of the Board of Directors. Due to stipulations of the
Articles of Association concerning the term of the members of the Board of
Directors Petra Lundström was elected for the term until the close of the Annual
General Meeting in 2015. Pertti Torstila was elected for the term until the
close of the Annual General Meeting in 2017.
Auditor and their remuneration
The Annual General Meeting elected Deloitte & Touche Oy, Authorized Public
Accountants, as auditor of the Company until the close of the Annual General
Meeting in 2015. Deloitte & Touche Oy has informed that APA Merja Itäniemi will
act as the auditor with the principal responsibility. The Auditor's fee is paid
according to their reasonable invoice presented to the company.
Authorization for directed acquisition of own A shares
The Annual General Meeting authorized the Board of Directors to decide on the
directed acquisition of a maximum of 160,000 of the Company's own A shares in
one or more instalments with funds belonging to the Company's unrestricted
equity. The new authorization replaces the previous one and is valid until the
closing of the Annual General Meeting in 2015, however, no longer than September
26, 2015.
Authorization to transfer Company's own shares
The Annual General Meeting authorized the Board of Directors to decide on the
transfer of a maximum of 319,150 own A shares. The transfer of own shares may be
carried out in deviation from the shareholders' pre-emptive rights and may be
transferred as a directed issue without payment as part of the Company's share
based incentive plan. The authorization can also be used to grant special rights
entitling subscription of own shares, and the subscription price of the shares
can instead of cash also be paid in full or in part as contribution in kind. The
new authorization replaces the previous one and is valid until March 26, 2019.
Donations
The Annual General Meeting authorized the Board of Directors to decide on
donations of maximum EUR 250,000. The authorization is valid until the close of
the Annual General Meeting in 2015.
The organizing meeting of the Board of Directors
At its organizing meeting held after the Annual General Meeting, the Board
elected Raimo Voipio to continue as the Chairman of the Board of Directors and
Yrjö Neuvo to continue as the Vice Chairman.
The composition of the Board committees was decided to be as follows:
Audit Committee
Maija Torkko was elected as the Chairman and Petra Lundström and Mikko
Niinivaara as members of the Audit Committee. The Chairman and all members of
the Audit Committee are independent both of the Company and of significant
shareholders.
Remuneration and Human Resources Committee
Raimo Voipio was elected as the Chairman and Yrjö Neuvo and Maija Torkko as
members of the Remuneration and Human Resources Committee. Raimo Voipio is
independent of the Company. Yrjö Neuvo and Maija Torkko are independent both of
the Company and of significant shareholders.
Vaisala's shares
Vaisala's share capital totaled EUR 7,660,808 on December 31, 2014. On December
31, 2014, Vaisala had 18,218,364 shares, of which 3,389,351 are series K shares
and 14,829,013 are series A shares. The K shares and A shares are differentiated
by the fact that each K share entitles its owner to 20 votes at a General
Meeting of Shareholders while each A share entitles its owner to 1 vote. The A
shares represent 81.4% of the total number of shares and 17.9% of the total
votes. The K shares represent 18.6% of the total number of shares and 82.1% of
the total votes.
Authorizations
The Annual General Meeting 2014 authorized the Board of Directors to decide on
the directed acquisition of a maximum of 160,000 of the Company's own A shares
in one or more instalments with funds belonging to the Company's unrestricted
equity. The new authorization replaces the previous one and is valid until the
closing of the Annual General Meeting in 2015, however, no longer than September
26, 2015. The Board of Directors did not use the authorization during 2014.
The Annual General Meeting authorized the Board of Directors to decide on the
transfer of a maximum of 319,150 own A-shares. The transfer of own shares may be
carried out in deviation from the shareholders' pre-emptive rights and may be
transferred as a directed issue without payment as part of the Company's share
based incentive plan. The authorization can also be used to grant special rights
entitling subscription of own shares, and the subscription price of the shares
can instead of cash also be paid in full or in part as contribution in kind. The
new authorization replaces the previous one and is valid until March 26, 2019.
The Board of Directors did not use the authorization during 2014.
Apart from the above, the Board of Directors has no other authorizations to
issue shares, convertible bonds or warrants programs.
The Annual General Meeting authorized the Board of Directors to decide on
donations of maximum EUR 250,000. The authorization is valid until the close of
the Annual General Meeting in 2015. The Board of Directors did use the
authorization during 2014. Vaisala will contribute humidity, temperature, and
carbon dioxide measurement instruments to the new children's hospital to be
constructed in Helsinki, Finland in 2017. The estimated value of this equipment
is 225,000 euros and it will be integrated into the hospital's building
automation solution.
Trading in shares on the NASDAQ OMX Helsinki Ltd
In 2014, a total of 1,110,337 (2,876,861) Vaisala shares with a value totaling
EUR 25.1 (56.5) million were traded on the NASDAQ OMX Helsinki Ltd.
The closing price of the Vaisala Corporation share on the NASDAQ OMX Helsinki
Ltd stock exchange in 2014 was EUR 21.89 (23.21). Vaisala's share price declined
by 6% (increase 46%) during the year while OMX Helsinki Cap index increased by
6% (26%). Shares registered a high of EUR 24.98 (23.47) and a low of EUR 19.40
(16.04). The average share price was EUR 22.60 (19.88).
The market value of Vaisala's A shares on December 31, 2014 was EUR 321.1
(344.2) million, excluding the Company's treasury shares. Valuing the K shares -
which are not traded on the stock market - at the rate of the A share's closing
price on the last day of December, the total market value of all the A and K
shares together was EUR 395.3 million (419.2), excluding the Company's treasury
shares.
At the end of December, Vaisala Corporation had 7,302 (7,708) registered
shareholders. Ownership outside of Finland and nominee registrations represented
16.3% (14.1%) of the company's shares. Households owned 45.7% (46.6%), private
companies 13.5% (14.3%), financial and insurance institutions 11.7% (11.6%),
non-profit organizations 8.2% (8.8%) and public sector organizations owned 4.6%
(4.6%).
Vaisala Corporation's Board of Directors held and controlled 657,470 A shares on
December 31, 2014 and 546,968 K shares. The Board of Directors' A and K shares
accounted for 14.0 % of the total votes.
The company's President and CEO held and controlled 2,720 A shares and no K
shares on December 31, 2014. Other Management Group members held and controlled
2,463 Vaisala A shares and no K shares.
Treasury shares and parent company shares
At the end of December, the Company held a total of 159,150 (159,150) Vaisala A
shares, which represented 0.9% (0.9%) of the share capital and 0.2% (0.2%) of
the votes. The consideration paid for these shares was EUR 2,527,160
(2,527,160).
More information about Vaisala's share and shareholders are presented on the
website, www.vaisala.com/investors.
Events after the review period
On January 27, 2015, Vaisala announced plans to restructure its business in
order to strengthen the capability to implement its strategy and to increase
agility. Vaisala continues to invest in its growth businesses and to develop
products and services which combine customers' business expertise and Vaisala's
technology leadership. The goal of the planned restructuring is to strengthen
customer focus across all functions and to ensure operational efficiency through
simplification. The proposed new organization is planned to be effective on
April 1, 2015.
During the restructuring Vaisala will adhere to the local legislation and
practices in each country. In Finland, Vaisala initiated co-operation
negotiations related to the restructuring on February 2, 2015. The planned
reorganization is expected to lead to a reduction in personnel. The reduction of
employees is estimated to total 60 full-time equivalents out of which about 25
are estimated to be in Finland.
Market outlook for 2015
In October-December 2014 several economic indicators trended slightly downwards.
However, supported by well-performing U.S. economy 2015 growth forecasts still
refer to moderate development and Vaisala is expecting demand for weather
observation, industrial measurement and life science solutions to remain at
current level. Differences in demand and business conditions between customer
groups and geographical areas are significant. Renewable energy and life science
markets and weather radars have the most promising outlook. In weather
observations market forecasting customers' timing for decision making and
acceptance of larger customer projects continues to be challenging and
competition is intensifying.
In EMEA demand for weather observation solutions is expected to be constrained
by economic weakness and currency depreciation in Russia and its neighboring
countries as well as conflicts in the Middle East. Weather observation market
outlook in Europe is solid. Market environment for industrial measurement and
life science solutions is expected to remain stable.
In Americas weather observation market outlook is stable. Market environment for
industrial measurement and life science solutions is expected to remain
favorable.
In APAC demand for weather observation solutions is expected to cool off
slightly in 2015, driven by the Chinese market. Market outlook for industrial
measurement and life science solutions in APAC is solid.
Business outlook for 2015
Vaisala estimates its full year 2015 net sales to be in the range of EUR
285-315 million and the operating result (EBIT) in the range of EUR 20-30
million.
In January-December 2014, Vaisala's net sales were EUR 299.7 million and
operating result (EBIT) was EUR 26.4 million.
Board of Directors' proposal for distribution of earnings
The parent company's distributable earnings amount to EUR 145,261,073.88, of
which the net result for the period is EUR 16,661,786.74.
The Board of Directors proposes to the Annual General Meeting that dividend of
EUR 0.90 per share be paid out of distributable earnings totaling approximately
EUR 16.4 million and the rest to be carried forward in the shareholders' equity.
No dividend will be paid for treasury shares held by the company.
There have been no significant changes to the company's financial position since
the close of the financial period. According to the Board of Directors, the
proposed dividend distribution does not endanger the company's financial
standing.
Financial statements 2014
Vaisala will publish a Financial Statements 2014 publication. This report will
be available in English and Finnish and can be downloaded as a pdf file and
ordered as a printed copy at www.vaisala.com the week starting March 2, 2015.
Annual General Meeting 2015
Vaisala's Annual General Meeting will be held on Tuesday, March 31, 2015 at 6
p.m. at Vaisala Corporation's head office, Vanha Nurmijärventie 21, 01670
Vantaa.
Vantaa, February 12, 2015
Vaisala Corporation
Board of Directors
The forward-looking statements in this release are based on the current
expectations, known factors, decisions and plans of Vaisala's management.
Although the management believes that the expectations reflected in these
forward-looking statements are reasonable, there is no assurance that these
expectations would prove to be correct. Therefore, the results could differ
materially from those implied in the forward-looking statements, due to for
example changes in the economic, market and competitive environments, regulatory
or other government-related changes, or shifts in exchange rates.
Financial information and changes in accounting policies
The financial statements have been prepared in accordance with the IAS 34
following the same accounting principles as in the annual financial statements.
The whole year numbers presented in the financial report have been audited. All
figures in the report are Group figures. All presented figures have been rounded
and consequently the sum of individual figures may deviate from the sum
presented.
The preparation of the financial statements in accordance with IFRS requires
Vaisala's management to make estimates and assumptions that affect the valuation
of the reported assets and liabilities and the recognition of income and
expenses in the statement of income. Although the estimates are based on the
management's best knowledge at the date of this report, actual results may
differ from the estimates.
Consolidated Statement of Income
10-12/ 10-12/ 1-12/ 1-12/
EUR million 2014 2013 2014 2013
-------------------------------------------------------------------------------
Net sales 95.7 80.5 299.7 273.2
Costs of sales -45.5 -41.3 -146.6 -138.9
-------------------------------------------------------------------------------
Gross profit 50.2 39.2 153.1 134.3
Sales, marketing and administrative
costs -26.1 -23.9 -93.2 -84.7
Research and development costs -9.4 -8.0 -34.0 -28.9
Other operating income and expense 0.1 -4.3 0.5 -2.6
-------------------------------------------------------------------------------
Operating profit (loss) 14.9 3.1 26.4 18.1
Share of result in associated
companies 0.1 0.1 0.1 0.1
Financial income and expenses, net 0.6 -0.2 2.6 -1.0
-------------------------------------------------------------------------------
Profit (loss) before taxes 15.7 2.8 29.1 17.2
Income taxes -2.5 -1.0 -5.7 -6.2
-------------------------------------------------------------------------------
Profit (loss) for the period 13.1 1.8 23.4 10.9
Earnings per share, EUR 0.73 0.10 1.30 0.60
Diluted earnings per share, EUR 0.72 0.10 1.29 0.60
Consolidated Statement of Comprehensive Income
10-12/ 10-12/ 1-12/ 1-12/
EUR million 2014 2013 2014 2013
-------------------------------------------------------------------------------
Items that will not be reclassified to profit or loss
Actuarial loss on post-employment
benefits -0.5 -0.1 -0.5 -0.1
-------------------------------------------------------------------------------
Total -0.5 -0.1 -0.5 -0.1
-------------------------------------------------------------------------------
Items that may be reclassified subsequently to profit or
loss
Currency translation differences 0.9 -2.2 3.5 -3.2
-------------------------------------------------------------------------------
Total 0.9 -2.2 3.5 -3.2
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Total other comprehensive income 0.5 -2.3 3.0 -3.3
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Total comprehensive income 13.6 -0.5 26.4 7.6
-------------------------------------------------------------------------------
Consolidated Statement of Financial Position
EUR million
-------------------------------------------------------------------------------
Assets December 31, 2014 December 31, 2013
-------------------------------------------------------------------------------
Non-current assets
Intangible assets 37.1 35.9
Property, plant and equipment 44.2 46.8
Investments 0.1 0.1
Investment in associated companies 0.8 0.7
Long-term receivables 0.3 0.9
Deferred tax assets 8.9 8.0
-------------------------------------------------------------------------------
Total non-current assets 91.5 92.5
Current assets
Inventories 33.9 28.6
Trade and other receivables 70.5 57.4
Income tax receivables 1.1 1.4
Cash and cash equivalents 47.6 45.8
-------------------------------------------------------------------------------
Total current assets 153.1 133.2
-------------------------------------------------------------------------------
Total assets 244.6 225.6
-------------------------------------------------------------------------------
Shareholders' equity
Share capital 7.7 7.7
Other reserves 2.5 1.5
Cumulative translation adjustment -0.2 -3.6
Treasury shares -2.5 -2.5
Retained earnings 162.6 155.9
-------------------------------------------------------------------------------
Total shareholders' equity 170.0 158.9
Non-current liabilities
Interest-bearing liabilities 0.0 0.0
Post-employment benefit obligations 1.3 0.7
Deferred tax liabilities 5.3 5.2
Provisions for other liabilities and
charges 0.2 -
Other long-term liabilities 2.9 2.1
-------------------------------------------------------------------------------
Total non-current liabilities 9.7 8.0
Current liabilities
Interest-bearing liabilities 0.0 0.0
Advances received 3.9 3.7
Income tax liabilities 1.5 0.3
Provisions for other liabilities and
charges 1.4 -
Trade and other payables 58.1 54.8
-------------------------------------------------------------------------------
Total current liabilities 64.9 58.7
-------------------------------------------------------------------------------
Total shareholders' equity and liabilities 244.6 225.6
-------------------------------------------------------------------------------
Consolidated Statement of Changes in Shareholders' Equity
Share Share Other Treasury Translation Retained
EUR million capital premium reserves shares adjustment earnings Total
-------------------------------------------------------------------------------
Balance at Jan
1, 2013 7.7 22.3 0.8 -2.5 -0.5 161.4 189.1
Profit (loss) for
the period 10.9 10.9
Other
comprehensive
income -0.0 -3.1 -0.1 -3.3
Dividend paid -16.2 -16.2
Reclassification -22.3 22.4 -0.1 -
Return of capital -22.2 -22.2
Share-based
payment 0.6 0.6
-------------------------------------------------------------------------------
Balance at
December 31,
2013 7.7 1.5 -2.5 -3.6 155.9 158.9
-------------------------------------------------------------------------------
Share Other Treasury Translation Retained
EUR million capital reserves shares adjustment earnings Total
-------------------------------------------------------------------------------
Balance at Jan
1, 2014 7.7 1.5 -2.5 -3.6 155.9 158.9
Profit (loss) for
the period 23.4 23.4
Other
comprehensive
income 0.0 3.5 -0.5 3.0
Dividend paid -16.3 -16.3
Reclassification -0.0 0.0 0.0
Correction 0.0 0.0
Share-based
payment 1.0 1.0
-------------------------------------------------------------------------------
Balance at
December 31,
2014 7.7 2.5 -2.5 -0.2 162.6 170.0
-------------------------------------------------------------------------------
Consolidated Cash Flow Statement
EUR million 1-12/2014 1-12/2013
-------------------------------------------------------------------------------
Cash flows from operating activities
Cash receipts from customers 287.0 282.8
Other income from business operations 0.4 0.2
Cash paid to suppliers and employees -260.3 -246.3
Financials paid, net 1.3 -0.8
Income taxes paid, net -4.5 -7.7
-------------------------------------------------------------------------------
Cash flow from operating activities 23.8 28.2
Cash flows from investing activities
Acquisition of subsidiary, net of cash acquired - -12.3
Capital expenditure on fixed assets -7.9 -7.1
Divestments 1.3 2.6
-------------------------------------------------------------------------------
Cash flow from investing activities -6.6 -16.8
Cash flows from financing activities
Return of capital - -22.2
Dividends paid -16.2 -16.2
Purchase of treasury shares - -
Change in loan receivables -0.1 -0.1
Change in leasing liabilities 0.0 -0.6
-------------------------------------------------------------------------------
Cash flow from financing activities -16.3 -39.1
Cash and cash equivalents at the beginning of period 45.8 74.8
Net increase (+) / decrease (-) in cash and cash
equivalents 0.9 -27.7
Effect from changes in exchange rates 0.9 -1.3
-------------------------------------------------------------------------------
Cash and cash equivalents at the end of period 47.6 45.8
-------------------------------------------------------------------------------
Notes for Report
Orders Received by Business Area
EUR million 10-12/2014 10-12/2013 1-12/2014 1-12/2013
-------------------------------------------------------------------------
Weather 65.4 64.1 215.2 208.3
Controlled environment 21.7 18.6 79.8 74.6
-------------------------------------------------------------------------
Total 87.1 82.7 295.0 282.9
-------------------------------------------------------------------------
Net Sales by Business Area
EUR million 10-12/2014 10-12/2013 1-12/2014 1-12/2013
-------------------------------------------------------------------------
Weather
Products 30.3 27.4 92.1 97.3
Projects 29.8 24.3 83.8 70.0
Services 13.3 10.7 43.7 32.7
-------------------------------------------------------------------------
Total 73.3 62.4 219.6 200.0
Controlled environment
Products 19.8 15.5 70.7 64.2
Services 2.6 2.5 9.4 9.0
-------------------------------------------------------------------------
Total 22.3 18.0 80.2 73.2
Sales, eliminations and others 0.0 0.0 0.0 0.1
-------------------------------------------------------------------------
Total Sales 95.7 80.5 299.7 273.2
-------------------------------------------------------------------------
Operating Result by Business Area
EUR million 10-12/2014 10-12/2013 1-12/2014 1-12/2013
-------------------------------------------------------------------------
Weather 12.7 7.6 17.0 14.5
Controlled environment 3.9 -3.5 12.1 4.0
Eliminations and other -1.7 -1.1 -2.8 -0.4
-------------------------------------------------------------------------
Total 14.9 3.1 26.4 18.1
-------------------------------------------------------------------------
Net Sales by Geographical Area
EUR million 10-12/2014 10-12/2013 1-12/2014 1-12/2013
-------------------------------------------------------------------------
EMEA 35.8 29.0 111.8 98.6
Americas 36.2 33.9 112.1 107.8
APAC 23.7 17.8 75.9 66.9
-------------------------------------------------------------------------
Total 95.7 80.5 299.7 273.2
-------------------------------------------------------------------------
Personnel 10-12/ 10-12/ 1-12/ 1-12/
2014 2013 2014 2013
-------------------------------------------------------------------------------
Average personnel 1,614 1,525 1,617 1,485
Personnel at the end of period 1,613 1,563 1,613 1,563
-------------------------------------------------------------------------------
Financial Instruments
10-12/ 10-12/ 1-12/ 1-12/
2014 2013 2014 2013
-------------------------------------------------------------------------------
Nominal value of financial derivatives, EUR million 20.0 19.7 20.0 19.7
Fair values of financial derivatives, assets, EUR
million 0.0 0.6 0.0 0.6
Fair values of financial derivatives, liabilities,
EUR million 1.4 0.0 1.4 0.0
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Financial derivatives consist solely of foreign currency forwards and they are
measured based on price information derived from active markets and commonly
used valuation methods (Fair value hierarchy 2). Financial contracts are
executed only with counterparties that have high credit ratings.
Share Information
10-12/ 10-12/ 1-12/ 1-12/
2014 2013 2014 2013
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Number of shares outstanding, thousand 18,059 18,059 18,059 18,059
Number of treasury shares, thousand 159 159 159 159
Number of shares, diluted, thousand 18,234 18,187 18,234 18,187
Number of shares, weighted average, thousand 18,059 18,059 18,059 18,059
Number of shares traded, thousand 359 794 1,110 2,877
Share price, highest, EUR 22.50 23.47 24.98 23.47
Share price, lowest, EUR 19.40 17.40 19.40 16.04
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Key Ratios
10-12/ 10-12/ 1-12/ 1-12/
2014 2013 2014 2013
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Earnings per share, EUR 0.73 0.10 1.30 0.60
Earnings per share, diluted, EUR 0.72 0.10 1.29 0.60
Equity per share, EUR 9.41 8.80 9.41 8.80
Cash flow from operating activities per share, EUR 0.83 0.66 1.32 1.55
Solvency ratio, % 70.6 71.6 70.6 71.6
Return on equity, % 14.3 6.3
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Further information
Kaarina Muurinen, CFO
Mobile +358 40 577 5066
Vaisala Corporation
Briefing and Audiocast
Briefing for analysts and media will be arranged in Hotel Kämp, Paavo Nurmi
meeting room, Pohjoisesplanadi 29, Helsinki starting at 4 p.m. (EEST) today. The
presentation of Kjell Forsén, President and CEO, at the briefing will be
audiocast live at www.vaisala.com/investors starting at 4 p.m. A recording of
the audiocast will be published at the same address at 6 p.m.
Distribution:
NASDAQ OMX Helsinki
Key media
www.vaisala.com
Vaisala is a global leader in environmental and industrial measurement. Building
on 78 years of experience, Vaisala contributes to a better quality of life by
providing a comprehensive range of innovative observation and measurement
products and services for chosen weather-related and industrial markets.
Headquartered in Finland, Vaisala employs approximately 1,600 professionals
worldwide and is listed on the NASDAQ OMX Helsinki stock exchange.
www.vaisala.com www.twitter.com/VaisalaGroup
[HUG#1894051]
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