2008-10-23 08:00:00 CEST
2008-10-23 08:01:58 CEST
REGULATED INFORMATION
Vacon - Interim report (Q1 and Q3)
Vacon Plc Interim Report 1 January - 30 September 2008
Vacon Plc, Stock Exchange Release, 23 October 2008 at 9.00 am EET:
Demand for Vacon's AC drives remained strong
July-September summary:
* Order intake totalled MEUR 77.8, growth of 33.2 % from the
corresponding period in the previous year (MEUR 58.4).
* Revenues totalled MEUR 74.2, increase of 26.4 % (MEUR 58.7).
* Operating profit was MEUR 9.1, growth of 16.7 % (MEUR 7.8).
* Cash flow from operations was MEUR 6.4 (MEUR 7.9).
* Earnings per share were EUR 0.37 (EUR 0.34), growth of 8.8 % from
the previous year.
January-September summary:
* Order intake totalled MEUR 239.3, growth of 37.1 % from the
corresponding period in the previous year (MEUR 174.5).
* Revenues totalled MEUR 218.1, growth of 27.7 % (MEUR 170.8).
* Operating profit was MEUR 27.1, increase of 24.9 % (MEUR 21.7).
* Cash flow from operations was MEUR 16.8 (MEUR 14.1).
* Earnings per share were EUR 1.19 (EUR 0.97), growth of 22.7 %
from the previous year.
The need to improve the energy efficiency of electric motor
applications and the large investments in power generation based on
renewable energy sources are expanding the AC drive market. Based on
market surveys, Vacon estimates that the AC drive market is growing
in the long term at an annual rate of about 10 %. Growth in North
America will be slightly lower than average market growth and in Asia
it will be higher, with China and India functioning as the engines of
growth. Vacon's market share is rising in all main market areas.
Vacon's investments in the growing markets in North America, Asia and
Russia will strengthen Vacon's position in the global market. The
purchase of the AC drives operations of TB Wood's boosts Vacon's
growth opportunities.
Sales of Vacon's products have developed well in 2008 in Europe,
North America and the Asia and Pacific region. All major application
areas for Vacon's products, in different industrial sectors as well
as in municipal engineering, have grown in the third quarter of 2008
compared to the corresponding period in the previous year. Growth in
revenues in the third quarter was proportionately strongest in the
Asia and Pacific region. Growth in Europe, the Middle East and Africa
region, and North and South America was as expected and clearly above
market growth.
The value of the orders received by Vacon in the third quarter rose
to EUR 77.8 million, and revenues totalled EUR 74.2 million.
Operating profit rose to EUR 9.1 million. Excluding the impact of the
purchase of the AC drives business of TB Wood's, Vacon's order intake
increased 25.9 %, revenues 17.5 % and operating profit 16.7 % from
the corresponding period in the previous year.
The operating profit margin in the third quarter was 12.3 %, compared
to 13.3 % in the corresponding period in 2007. The operating profit
margin before amortization of intangible rights (EBITA) was 13.6
(14.0 %). Amortization of the intangible rights generated by the
acquisition of the AC drives business of TB Wood's (EUR 0.4 million)
reduced the operating profit margin by 0.5 percentage points.
January - September result and equity structure
MEUR 7-9/ % 7-9/ % 1-9/ % 1-9/ % 1-12/ %
2008 2007 2008 2007 2007
Europe,
Middle
East,
Africa 52.3 70.5 43.9 74.8 156.6 71.8 129.6 75.9 172.6 74.3
North
and
South
America 14.9 20.1 10.6 18.1 41.9 19.2 29.0 17.0 42.1 18.1
Asia &
Pacific 7.0 9.4 4.2 7.1 19.6 9.0 12.2 7.1 17.5 7.6
Total 74.2 100 58.7 100 218.1 100 170.8 100 232.2 100
Orders received by the Group in January-September were 37.1 % higher
than in the previous year. The order book for the acquired AC drives
business of TB Wood's at the start of the year together with the
orders received during the first nine months of the year totalled EUR
19.7 million. Excluding the impact of the acquired business, the
volume of orders increased 25.9 %. The Group's order book stood at
EUR 56.0 (33.4) million at the end of September, an increase of EUR
21.2 million from the beginning of the year.
Revenues increased 27.7 % from the corresponding period in the
previous year. Growth in revenues excluding the acquisition of the TB
Wood's AC drives business was 17.6 %.
The operating profit for nine months was 24.9 % higher than one year
before. The operating profit for comparable figures was EUR 27.7
million, growth of 27.6 % from the previous year. The EBITA margin
was 13.7 %, which was better than in the previous year (13.5 %).
Amortization of intangible rights generated by the acquisition of the
TB Wood's AC drives business (EUR 1.1 million) reduced the operating
profit margin by 0.5 percentage points. The earnings per share rose
to EUR 1.19, an increase from the previous year of EUR 0.22.
No change occurred during the third quarter in the estimate of the
final price for the AC drives business of TB Wood's. Calculations for
allocating the goodwill and the acquisition price for the acquired
business are presented in the tables at the end of this report.
The balance sheet total was EUR 150.8 (97.8) million. The balance
sheet total shows the impact of the acquired business and the
increase in the Group's net working capital. Net working capital rose
EUR 12.7 million from the start of the year, and EUR 5.5 million of
this was due to the acquired business. The equity ratio was 48.0 %.
The Group's cash flow from operations for the January- September
period was EUR 16.8 (14.1) million.
The Group's equity structure and liquidity remained strong.
Interest-bearing net debt at the end of the period totalled EUR 11.3
(-8.0) million, and gearing was 15.8 % (-13.8 %). The debt comprises
long-term loans used to finance the purchase of the TB Wood's AC
drives business.
Market position
Vacon Group revenues by market area were as follows
MEUR 7-9/ % 7-9/ % 1-9/ % 1-9/ % 1-12/ %
2008 2007 2008 2007 2007
Europe,
Middle
East,
Africa 52.3 70.5 43.9 74.8 156.6 71.8 129.6 75.9 172.6 74.3
North
and
South
America 14.9 20.1 10.6 18.1 41.9 19.2 29.0 17.0 42.1 18.1
Asia &
Pacific 7.0 9.4 4.2 7.1 19.6 9.0 12.2 7.1 17.5 7.6
Total 74.2 100 58.7 100 218.1 100 170.8 100 232.2 100
During the first nine months of 2008 Vacon strengthened its position
in all main market areas.
Vacon's revenues by region increased during the first nine months of
the year as follows: Europe, Middle East and Africa in total 20.8 %,
North and South America 44.5 % and Asia and Pacific 60.7 %. Excluding
the impact of the AC drives business of TB Wood's, growth in revenues
in January-September was 16.9 % in North and South America and 14.0 %
in Europe. The corresponding figures for the third quarter were 11.3
% in North and South America and 14.8 % in Europe.
Breakdown of Vacon Group revenues by distribution channel
MEUR 7-9/ % 7-9/ % 1-9/ % 1-9/ % 1-12/ %
2008 2007 2008 2007 2007
Direct
sales 36.9 49.7 24.6 42.0 104.1 47.7 71.9 42.1 99.0 42.6
Distri-
bu-
tors 9.4 12.6 7.9 13.5 27.6 12.7 23.0 13.5 31.3 13.5
OEM 15.6 21.1 14.5 24.7 50.3 23.0 43.6 25.5 56.4 24.3
Brand
label 12.3 16.6 11.6 19.8 36.1 16.6 32.3 18.9 45.5 19.6
Total 74.2 100 58.7 100 218.1 100 170.8 100 232.2 100
Consolidated revenues by distribution channel compared to those of
the previous year increased during the first nine months as follows:
OEM 15.4 %, direct sales 44.8 %, distributors 20.0 % and brand label
customers 11.8 %.
On 25 September 2008 Vacon signed an agreement with Elo Serviços
Indústria e Comercio de Equipamentos Eletroeletrônicos Ltda (ELO),
one of the biggest distributors of AC drives in Brazil. Vacon is
expanding its operations in Brazil, since demand, particularly in the
renewable energy production sector, is creating growth opportunities
in Brazil and elsewhere in South America.
Vacon Group structure
No significant changes took place in the Group structure during the
third quarter.
Research and development
During the first part of the year Vacon has increased the number of
personnel at its R&D units in Finland and China. Following the
acquisition of the TB Wood's business, Vacon now has R&D in the USA
and Italy as well.
R&D expenditure during the first nine months of the year totalled EUR
12.6 (10.1) million, and EUR 1.3 (1.1) million of this was
capitalized as development costs. R&D costs accounted for 5.8 % (5.9
%) of Group revenues.
Vacon aims to renew its product offering during 2008-2010. Work on
developing the new products continued during the review period in
accordance with the company's plans. Next generation product will
further enhance company's product leadership strategy. The new
product generation is developed to make it more competitive in terms
of features and costs. The new generation Vacon 100 HVAC AC drive
designed for building automation will be launched in November 2008.
Investments
Gross investments by the Group during the first nine months of the
year, excluding the purchase of the TB Wood's AC drives business,
totalled EUR 7.0 (4.9) million. Expenditure focused on increasing and
maintaining production capacity, on tools needed in the manufacture
of new products, and on information systems.
The extension to Vacon's factory in Finland was completed in October
2008. The extension will help ensure the company has sufficient
production capacity in the next few years.
Organization and personnel
The number of Vacon personnel has increased by 294 since the start of
the year, including 149 new people that came with the acquisition of
the TB Wood's AC drives business. At the end of September the Group
employed 1,163 people (809), of whom 633 (515) were in Finland and
530 (294) in other countries. These figures do not include contract
personnel. The table below shows the average number of Vacon
employees during the review period:
+-----------------------------------------------------+
| | 1-9/2008 | 1-9/2007 | 1-12/2007 |
|-------------------+----------+----------+-----------|
| Office personnel | 672 | 504 | 512 |
|-------------------+----------+----------+-----------|
| Factory personnel | 439 | 241 | 260 |
|-------------------+----------+----------+-----------|
| TOTAL | 1,111 | 745 | 772 |
+-----------------------------------------------------+
Shares and shareholders
Vacon had a market capitalization at the end of September of EUR
411.8 million. The closing share price on 30 September 2008 was EUR
27.00. The lowest share price during the January-September period was
EUR 20.02 and the highest EUR 32.44. A total of 3,842,061 Vacon
shares (25 % of the share stock) were traded during the
January-September period, in monetary terms EUR 106.6 million.
Vacon's main shareholders on 30 September 2008:
Number of shares Holding, %
Ahlström Capital Oy 2,297,996 15.0
Tapiola Mutual Pension Insurance Company 584,500 3.8
Vaasa Engineering Oy 424,433 2.8
Koskinen Jari 360,670 2.4
Holma Mauri 347,171 2.3
Ehrnrooth Martti 331,000 2.2
Tapiola Group companies 325,300 2.1
Niemelä Harri 309,840 2.0
OP-Delta fund 265,607 1.7
Karppinen Veijo 209,349 1.4
Nominee registered and
in foreign ownership 5,066,802 33.1
Others 4,772,332 31.2
Total 15,295,000 100.0
Vacon Plc's own shares -43,312
Shares outstanding 15,251,688
On 30 September 2008 members of Vacon's Board of Directors, the
President and CEO, and the Deputy to the CEO held directly a total of
574,276 shares, or 3.8 % of Vacon's share stock.
Own shares
On 30 September 2008 Vacon Plc held a total of 43,312 of its own
shares, which it had acquired at an average price of EUR 12.45. The
shares have a nominal value of EUR 0.20. The shares held by the
company are 0.3 % of the share capital and voting rights so they have
no significant impact on the distribution of ownership or voting
rights in the company.
Risks and factors causing uncertainty in the near future
The financial crisis which began in the USA turned critical during
September and October and has increased the probability of a decline
in industrial investment. On the other hand, it is especially when
market conditions are difficult that companies have the need to
improve the cost-efficiency of their operations, which in turn
encourages them to invest in solutions that improve energy
efficiency, such as AC drives.
The most significant risks for Vacon in the near future are a
weakening in general demand and intensified competition on prices.
Other major risks relate to the availability of raw materials and
components and developments in their prices. Purchase agreements for
raw materials and components are mainly annual agreements that
contain price and exchange rate clauses relating to changes in the
global market prices for raw materials and other materials.
Another factor that affects the company's profitability is the value
of the euro against other invoicing currencies, of which the most
important are the US dollar and the Chinese RMB.
More information about risks and risk management at Vacon are given
in Vacon's 2007 annual report and consolidated financial statements.
Prospects
Concern about the sufficiency of energy supplies, environmental
warming and clean water in densely populated areas will increase the
market for AC drives in the long term. Market research indicates that
the AC drive market is expected to grow at an annual rate of about 10
%.
Vacon has started to renew its product offering. The new products
will be more competitive than the current products. This will also
give a competitive edge if the market becomes more strained in the
near future. This will further enhance company's product leadership
strategy. The new products will be more cost competitive and easier
to apply to customers' needs. Its global production and R&D network
on three continents will enable Vacon to serve the changing needs of
its customers more effectively.
The order intake in July-September was good. All major application
areas for Vacon's products, in different industrial sectors and in
municipal engineering, grew in the third quarter of 2008 compared to
the corresponding period in the previous year. As a product company,
Vacon's order book is short, however, and any slowdown in the order
intake towards the end of the year can still affect revenues and the
result for the final period.
In the current state of economic environment, making a forecast about
the prospects in the next few months is difficult and contains
factors causing uncertainty. Vacon is maintaining the forecast it
issued previously and estimates that revenues in 2008 will rise by
close to 30 % (by close to 20 % on comparable figures) and
profitability (EBIT-%) will remain at the same level as in 2007.
Earnings per share are forecast to be above EUR 1.6 in 2008.
Financial reports for 2008
Vacon will publish its financial statements for 2008 on Thursday, 5
February 2009 at 9.00 am.
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 or in the
company's business sector.
Vacon in brief
Vacon was established in 1993 from a passion to develop and produce
AC drives globally. It is a matter of honour for Vacon to offer
customers efficient, reliable and easy to use means for improving
process control and saving energy and costs. Vacon's solutions
represent clean technology. They can be used to control the speed of
electric motors used by industry and municipal engineering, and in
power generation using renewable energy. Vacon provides AC drives in
the power range 0.25 kW - 5 MW. Revenues in 2007 totalled EUR 232.2
million.
Vaasa, 23 October 2008
VACON PLC
Board of Directors
For more information please contact:
Mr Vesa Laisi, President and CEO, phone: +358 (0)40 8371 510
Mr Mika Leppänen, CFO and Vice President, Finance & Control, phone:
+358 (0)40 8371 235
Conference for media and analysys
Vacon will hold a briefing for analysts and the media at 11.30 am on
23 October 2008 at the Radisson SAS Plaza Hotel, Mikonkatu 23,
Helsinki
Dial-in conference for investors and investment analysts
A dial-in conference in English for investors and investment analysts
will be held at 3.00 pm on 23 October 2008. President and CEO Vesa
Laisi and Mika Leppänen, CFO and Vice President, Finance and Control,
will participate in the conference. Lines can be booked ten minutes
before the conference by calling the service number +44 207 162 0025.
The conference ID code is "Vacon Oyj". To hear a recording of the
conference, available for three working days, call +44 207 031 4064,
ID code 782084.
Conference link:
http://wcc.webeventservices.com/view/wl/r.htm?
e=103016&s=1&k=4601328257A3B8E646E354024DFF68F4&cb=genesys
Distribution
Helsinki Exchanges
Financial Supervision Authority
Main media
Summary of financial statements and notes
Accounting principles
This interim report has been prepared in accordance with IFRS
(International Financial Reporting Standards) standard IAS 34 on
Interim Financial Reporting.
Vacon has prepared this interim report applying the same accounting
principles as those decribed in detail in its 2007 consolidated
financial statements
The interim report is unaudited.
Consolidated income statement, IFRS, MEUR
+-------------------------------------------------------------+
| | 7-9/ | 7-9/ | 1-9/ | 1-9/ | 1-12/ |
|-------------------+-------+-------+--------+-------+--------|
| | 2008 | 2007 | 2008 | 2007 | 2007 |
|-------------------+-------+-------+--------+-------+--------|
| | | | | | |
|-------------------+-------+-------+--------+-------+--------|
| Revenues | 74.2 | 58.7 | 218.1 | 170.8 | 232.2 |
|-------------------+-------+-------+--------+-------+--------|
| Other operating | | | | | |
|-------------------+-------+-------+--------+-------+--------|
| income | 0.0 | 0.0 | 0.1 | 0.1 | 0.2 |
|-------------------+-------+-------+--------+-------+--------|
| Change in | | | | | |
|-------------------+-------+-------+--------+-------+--------|
| inventories of | | | | | |
|-------------------+-------+-------+--------+-------+--------|
| finished goods | | | | | |
|-------------------+-------+-------+--------+-------+--------|
| and work | | | | | |
|-------------------+-------+-------+--------+-------+--------|
| in progress | 1.7 | -0.2 | 4.0 | 1.1 | 1.4 |
|-------------------+-------+-------+--------+-------+--------|
| Materials and | | | | | |
|-------------------+-------+-------+--------+-------+--------|
| services | -39.6 | -30.7 | -115.9 | -91.3 | -123.0 |
|-------------------+-------+-------+--------+-------+--------|
| Employee | | | | | |
|-------------------+-------+-------+--------+-------+--------|
| benefit costs | -13.6 | -9.7 | -39.0 | -28.1 | -38.9 |
|-------------------+-------+-------+--------+-------+--------|
| Other operating | | | | | |
|-------------------+-------+-------+--------+-------+--------|
| expenses | -11.7 | -9.1 | -34.8 | -27.5 | -37.7 |
|-------------------+-------+-------+--------+-------+--------|
| Depreciation | -0.9 | -0.7 | -2.6 | -2.1 | -2.8 |
|-------------------+-------+-------+--------+-------+--------|
| EBITA | 10.1 | 8.2 | 29.8 | 23.1 | 31.2 |
|-------------------+-------+-------+--------+-------+--------|
| Amortization | -1.0 | -0.4 | -2.7 | -1.4 | -1.9 |
|-------------------+-------+-------+--------+-------+--------|
| Operating profit | 9.1 | 7.8 | 27.1 | 21.7 | 29.2 |
|-------------------+-------+-------+--------+-------+--------|
| Financial | | | | | |
|-------------------+-------+-------+--------+-------+--------|
| income and | | | | | |
|-------------------+-------+-------+--------+-------+--------|
| expenses | -0.9 | -0.3 | -1.0 | -0.5 | -0.4 |
|-------------------+-------+-------+--------+-------+--------|
| Profit | | | | | |
|-------------------+-------+-------+--------+-------+--------|
| before taxes | 8.2 | 7.5 | 26.2 | 21.2 | 28.8 |
|-------------------+-------+-------+--------+-------+--------|
| Income taxes | -2.3 | -2.1 | -7.4 | -6.0 | -7.4 |
|-------------------+-------+-------+--------+-------+--------|
| Profit for period | 5.9 | 5.4 | 18.8 | 15.2 | 21.4 |
|-------------------+-------+-------+--------+-------+--------|
| Attributable to: | | | | | |
|-------------------+-------+-------+--------+-------+--------|
| Equity | | | | | |
|-------------------+-------+-------+--------+-------+--------|
| holders of the | | | | | |
|-------------------+-------+-------+--------+-------+--------|
| parent | 5.7 | 5.3 | 18.2 | 14.8 | 20.9 |
|-------------------+-------+-------+--------+-------+--------|
| Minority | | | | | |
|-------------------+-------+-------+--------+-------+--------|
| interest | 0.2 | 0.1 | 0.6 | 0.4 | 0.5 |
|-------------------+-------+-------+--------+-------+--------|
| Earnings | | | | | |
|-------------------+-------+-------+--------+-------+--------|
| per share, | | | | | |
|-------------------+-------+-------+--------+-------+--------|
| euro | 0.37 | 0.34 | 1.19 | 0.97 | 1.37 |
|-------------------+-------+-------+--------+-------+--------|
| Earnings per | | | | | |
|-------------------+-------+-------+--------+-------+--------|
| share | | | | | |
|-------------------+-------+-------+--------+-------+--------|
| diluted, euro | 0.37 | 0.34 | 1.19 | 0.97 | 1.37 |
|-------------------+-------+-------+--------+-------+--------|
| | | | | | |
+-------------------------------------------------------------+
Consolidated balance sheet, IFRS, MEUR
+-------------------------------------------------------------------+
| | 30.9.2008 | 30.9.2007 | 31.12.2007 |
|------------------------------+-----------+-----------+------------|
| ASSETS | | | |
|------------------------------+-----------+-----------+------------|
| Intangible assets | 24.5 | 8.7 | 9.6 |
|------------------------------+-----------+-----------+------------|
| Tangible assets | 18.3 | 13.2 | 14.7 |
|------------------------------+-----------+-----------+------------|
| Investments | 2.2 | 1.8 | 1.9 |
|------------------------------+-----------+-----------+------------|
| | | | |
|------------------------------+-----------+-----------+------------|
| Loans receivable and | | | |
|------------------------------+-----------+-----------+------------|
| other receivables | 0.4 | 0.4 | 0.4 |
|------------------------------+-----------+-----------+------------|
| Deferred tax assets | 2.1 | 1.5 | 1.5 |
|------------------------------+-----------+-----------+------------|
| Total non-current assets | 47.5 | 25.6 | 28.2 |
|------------------------------+-----------+-----------+------------|
| | | | |
|------------------------------+-----------+-----------+------------|
| Inventories | 24.5 | 14.3 | 14.7 |
|------------------------------+-----------+-----------+------------|
| Trade and other receivables | 60.5 | 46.1 | 45.8 |
|------------------------------+-----------+-----------+------------|
| Cash and cash equivalents | 18.2 | 11.8 | 34.4 |
|------------------------------+-----------+-----------+------------|
| Total current assets | 103.3 | 72.2 | 94.9 |
|------------------------------+-----------+-----------+------------|
| | | | |
|------------------------------+-----------+-----------+------------|
| Total assets | 150.8 | 97.8 | 123.2 |
|------------------------------+-----------+-----------+------------|
| | | | |
|------------------------------+-----------+-----------+------------|
| EQUITY AND LIABILITIES | | | |
|------------------------------+-----------+-----------+------------|
| Equity attributable | | | |
|------------------------------+-----------+-----------+------------|
| to equity holders | | | |
|------------------------------+-----------+-----------+------------|
| of the parent company | 70.4 | 57.2 | 62.9 |
|------------------------------+-----------+-----------+------------|
| Minority interest | 1.2 | 1.0 | 1.1 |
|------------------------------+-----------+-----------+------------|
| Total equity | 71.6 | 58.2 | 64.0 |
|------------------------------+-----------+-----------+------------|
| | | | |
|------------------------------+-----------+-----------+------------|
| Deferred tax liabilities | 3.1 | 1.4 | 1.6 |
|------------------------------+-----------+-----------+------------|
| Employee benefits | 1.4 | 0.8 | 0.8 |
|------------------------------+-----------+-----------+------------|
| Interest-bearing liabilities | 17.4 | 1.6 | 19.1 |
|------------------------------+-----------+-----------+------------|
| Total non-current | | | |
| liabilities | 22.0 | 3.8 | 21.6 |
|------------------------------+-----------+-----------+------------|
| | | | |
|------------------------------+-----------+-----------+------------|
| Trade and other payables | 40.0 | 30.2 | 30.9 |
|------------------------------+-----------+-----------+------------|
| Income tax liabilities | 3.1 | 2.5 | 1.6 |
|------------------------------+-----------+-----------+------------|
| Provisions | 2.0 | 0.9 | 0.8 |
|------------------------------+-----------+-----------+------------|
| Interest-bearing liabilities | 12.1 | 2.1 | 4.3 |
|------------------------------+-----------+-----------+------------|
| Total current liabilities | 57.1 | 35.7 | 37.6 |
|------------------------------+-----------+-----------+------------|
| | | | |
|------------------------------+-----------+-----------+------------|
| Total equity and liabilities | 150.8 | 97.8 | 123.2 |
+-------------------------------------------------------------------+
Q3/2007 Calculation of changes in shareholders' equity, IFRS, MEUR
Minor- Total
Attributable to equity ity equity
holders of the parent inter-
est
Share Share Own Transla- Revalu Re- Total
capital pre- shares tion ation tained
mium differ- fund earn-
reserve rence ings
Shareholders'
Equity
31.12.2006 3.1 5.0 -1.2 -0.1 0.1 45.2 52.0 1.0 53.0
Cash flow
Hedging:
Hedging
result
allocated to
Equity 0.1 0.1 0.1
Transferred
as
adjustment to
revenues -0.1 -0.1 -0.1
Translation
difference 0.0 0.0 0.0
Other changes 0.1 0.2 0.2 0.2
Net income
recorded
Directly in
equity 0.0 0.0 0.0 0.1 0.0 0.2 0.2 0.0 0.3
Profit for
Period 14.8 14.8 0.4 15.2
Income and
expenses
recorded
during
period,
total 0.0 0.0 0.0 0.1 0.0 15.0 15.1 0.4 15.5
Dividend paid -9.9 -9.9 -0.3 -10.2
Shareholders'
equity
30.9.2007 3.1 5.0 -1.2 -0.1 0.1 50.3 57.2 1.0 58.2
Q3/2008 Calculation of changes in shareholders' equity, IFRS, MEUR
Attributable to equity Mino Total
-ity Equi-
ty
holders of the parent inter-
est
Share Share Own Transla- Revalu- Re- Total
capital Pre- shares tion ation tained
mium diffe- fund earn-
rence ings
Shareholders'
Equity
31.12.2007 3.1 5.0 -1.2 -0.5 0.0 56.5 62.9 1.1 64.0
Cash flow
Hedging:
Hedging
result
allocated to
equity 0.0 0.0 0.0
Transferred
as
adjustment to
revenues 0.0 0.0 0.0
Translation
difference 0.5 0.5 0.5
Other
changes 0.3 0.3 0.0 0.3
Net income
recorded
Directly in
equity 0.0 0.0 0.0 0.5 0.0 0.3 0.7 0.0 0.7
Profit for
Period 18.2 18.2 0.6 18.8
Income and
expenses
recorded
during
period,
total 0.5 0.0 18.4 18.9 0.6 19.5
Dividend paid -11.4 -11.4 -0.5 -11.9
Shareholders'
equity
30.9.2008 3.1 5.0 -1.2 0.0 0.0 63.5 70.4 1.2 71.6
Consolidated cash flow statement, IFRS, MEUR
+-------------------------------------------------------------------+
| | 30.9.2008 | 30.9.2007 | 31.12.2007 |
|------------------------------+-----------+-----------+------------|
| | | | |
|------------------------------+-----------+-----------+------------|
| Profit for the period | 18.8 | 15.2 | 21.4 |
|------------------------------+-----------+-----------+------------|
| Depreciation | 5.3 | 3.5 | 4.8 |
|------------------------------+-----------+-----------+------------|
| Financial income and | | | |
| expenses | 1.0 | 0.5 | 0.5 |
|------------------------------+-----------+-----------+------------|
| Taxes | 7.4 | 6.0 | 7.4 |
|------------------------------+-----------+-----------+------------|
| Other adjustments | 0.5 | 0.2 | 0.1 |
|------------------------------+-----------+-----------+------------|
| Change in working capital | -9.3 | -5.8 | -5.5 |
|------------------------------+-----------+-----------+------------|
| Cash flow from financial | | | |
|------------------------------+-----------+-----------+------------|
| items and tax | -6.8 | -5.5 | -7.5 |
|------------------------------+-----------+-----------+------------|
| | | | |
|------------------------------+-----------+-----------+------------|
| Cash flow from operating | | | |
|------------------------------+-----------+-----------+------------|
| activities | 16.8 | 14.1 | 21.1 |
|------------------------------+-----------+-----------+------------|
| | | | |
|------------------------------+-----------+-----------+------------|
| Investments in tangible and | | | |
|------------------------------+-----------+-----------+------------|
| intangible assets | -26.0 | -4.4 | -8.6 |
|------------------------------+-----------+-----------+------------|
| Proceeds from disposal of | | | |
|------------------------------+-----------+-----------+------------|
| tangible and intangible | | | |
| assets | | 0.1 | 0.4 |
|------------------------------+-----------+-----------+------------|
| Loans granted | | 0.0 | 0.0 |
|------------------------------+-----------+-----------+------------|
| Other investments | -0.4 | -0.5 | -0.6 |
|------------------------------+-----------+-----------+------------|
| Repayment of loan | | | |
| receivables | | 0.2 | 0.2 |
|------------------------------+-----------+-----------+------------|
| Proceeds from disposal of | | | |
| other | | | |
|------------------------------+-----------+-----------+------------|
| investments | | 0.0 | 0.0 |
|------------------------------+-----------+-----------+------------|
| | | | |
|------------------------------+-----------+-----------+------------|
| Cash flow from investing | | | |
|------------------------------+-----------+-----------+------------|
| activities | -26.4 | -4.7 | -8.6 |
|------------------------------+-----------+-----------+------------|
| | | | |
|------------------------------+-----------+-----------+------------|
| Share issue | 0.0 | 0.0 | 0.0 |
|------------------------------+-----------+-----------+------------|
| Proceeds from long-term | | | |
|------------------------------+-----------+-----------+------------|
| borrowings | 0.0 | 0.0 | 21.9 |
|------------------------------+-----------+-----------+------------|
| Repayment of long-term loans | -2.3 | -0.1 | -0.2 |
|------------------------------+-----------+-----------+------------|
| Proceeds from short-term | 7.8 | 2.0 | 1.0 |
|------------------------------+-----------+-----------+------------|
| borrowings | | | |
|------------------------------+-----------+-----------+------------|
| Repayment of short-term | | | |
| loans | 0.0 | -2.0 | -2.2 |
|------------------------------+-----------+-----------+------------|
| Financial leasing payments | 0.0 | -0.3 | -0.3 |
|------------------------------+-----------+-----------+------------|
| Dividends paid | -11.9 | -10.2 | -10.2 |
|------------------------------+-----------+-----------+------------|
| | | | |
|------------------------------+-----------+-----------+------------|
| Cash flow from financial | | | |
| activities | -6.4 | -10.6 | 10.0 |
|------------------------------+-----------+-----------+------------|
| | | | |
|------------------------------+-----------+-----------+------------|
| Change in liquid funds | -16.1 | -1.1 | 22.5 |
|------------------------------+-----------+-----------+------------|
| Liquid funds at start of | | | |
| period | 34.4 | 13.0 | 13.0 |
|------------------------------+-----------+-----------+------------|
| Translation differences for | | | |
| liquid | | | |
|------------------------------+-----------+-----------+------------|
| funds | -0.1 | -0.1 | -1.2 |
|------------------------------+-----------+-----------+------------|
| Liquid funds at end of | | | |
| period | 18.2 | 11.8 | 34.4 |
+-------------------------------------------------------------------+
Segment information
Reporting on Vacon Group's operations is firstly by business segment
and secondly by geographical segment.
Vacon has one business segment, AC drives. The figures for the
primary segment are identical with the figures for the whole Group.
Vacon's operations are organized in the following functions: Products
and Markets, Production, Research & Development, Finance and
Administration, Human Resources, IT and Process Development. To
ensure that the organisation is customer-oriented, operations are
controlled by customer segments that are called business areas. These
business areas are: Component Customers, Solutions Customers, OEM and
Brand Label Customers, and Service and After-Market Services.
The secondary, geographical segment is divided into three sales
areas: EMEA (Europe, Middle East and Africa), Americas (North and
South America) and APAC (Asia and Pacific).
Acquired business operations
On 1 January 2008 the Group acquired the AC drives business of TB
Wood's, part of US-based Altra Holdings Inc. The estimated final
price is USD 29.2 million. According to initial calculations, the
acquisition of TB Wood's generates goodwill of EUR 6.4 million, which
is based on the anticipated opportunities for expansion and synergy
benefits.
+-----------------------------------------------+
| MEUR | |
|---------------------------------------+-------|
| Acquisition cost | |
|---------------------------------------+-------|
| Cash price | 19.8 |
|---------------------------------------+-------|
| Direct costs relating to acquisition | 1.3 |
|---------------------------------------+-------|
| Total acquisition cost | 21.1 |
|---------------------------------------+-------|
| | |
|---------------------------------------+-------|
| Fair value of net assets acquired | 14.7 |
|---------------------------------------+-------|
| Goodwill | 6.4 |
|---------------------------------------+-------|
| | |
|---------------------------------------+-------|
| Allocation of goodwill: | |
|---------------------------------------+-------|
| Europe, Middle East and Africa | 2.7 |
|---------------------------------------+-------|
| North and South America | 3.7 |
|---------------------------------------+-------|
| Asia and Pacific | 0.0 |
|---------------------------------------+-------|
| | |
|---------------------------------------+-------|
| | |
|---------------------------------------+-------|
| Impact on cash flow was as follows: | |
|---------------------------------------+-------|
| Total acquisition cost | -21.1 |
|---------------------------------------+-------|
| Loans raised | 19.4 |
|---------------------------------------+-------|
| Cash funds received | 0.7 |
|---------------------------------------+-------|
| Net payment for acquisition from cash | |
|---------------------------------------+-------|
| funds | -1.0 |
+-----------------------------------------------+
+-------------------------------------------------------------------+
| | Carrying | Fair value | Useful life |
| | amount | | |
|-----------------------------+----------+------------+-------------|
| | | | commercial |
|-----------------------------+----------+------------+-------------|
| | | | in years |
|-----------------------------+----------+------------+-------------|
| Identified intangible | | | |
| assets | | | |
|-----------------------------+----------+------------+-------------|
| Customer relations | | 4.4 | 5 |
|-----------------------------+----------+------------+-------------|
| Technology developed | | 4.2 | 5 |
|-----------------------------+----------+------------+-------------|
| Tangible assets | 1.8 | 2.2 | |
|-----------------------------+----------+------------+-------------|
| Inventories | 5.4 | 5.5 | |
|-----------------------------+----------+------------+-------------|
| Receivables, total | 2.9 | 2.9 | |
|-----------------------------+----------+------------+-------------|
| Cash and bank balances | 0.7 | 0.7 | |
|-----------------------------+----------+------------+-------------|
| Assets, total | 10.9 | 19.9 | |
|-----------------------------+----------+------------+-------------|
| | | | |
|-----------------------------+----------+------------+-------------|
| Non-current liabilities | 0.3 | 0.3 | |
|-----------------------------+----------+------------+-------------|
| Current liabilities | 3.5 | 3.5 | |
|-----------------------------+----------+------------+-------------|
| Deferred tax liabilities | | 1.5 | |
|-----------------------------+----------+------------+-------------|
| Liabilities, total | 3.8 | 5.2 | |
|-----------------------------+----------+------------+-------------|
| | | | |
|-----------------------------+----------+------------+-------------|
| Net assets | | 14.7 | |
|-----------------------------+----------+------------+-------------|
| Acquisition cost | | 19.8 | |
|-----------------------------+----------+------------+-------------|
| Direct costs relating to | | | |
|-----------------------------+----------+------------+-------------|
| acquisition | | 1.3 | |
|-----------------------------+----------+------------+-------------|
| Goodwill | | 6.4 | |
+-------------------------------------------------------------------+
Key indicators
+-------------------------------------------------------------------+
| | 30.9.2008 | 30.9.2007 | 31.12.2007 |
|----------------------------+------------+------------+------------|
| Order intake, MEUR | 239.3 | 174.5 | 237.2 |
|----------------------------+------------+------------+------------|
| Increase in order intake, | | | |
|----------------------------+------------+------------+------------|
| % | 37.1 | 23.5 | 20.2 |
|----------------------------+------------+------------+------------|
| Revenues, MEUR | 218.1 | 170.8 | 232.2 |
|----------------------------+------------+------------+------------|
| Increase in revenues, % | 27.7 | 26.1 | 24.6 |
|----------------------------+------------+------------+------------|
| Operating profit, MEUR | 27.1 | 21.7 | 29.2 |
|----------------------------+------------+------------+------------|
| Increase in operating | | | |
|----------------------------+------------+------------+------------|
| profit, % | 24.9 | 26.9 | 26.4 |
|----------------------------+------------+------------+------------|
| Operating profit, % of | | | |
|----------------------------+------------+------------+------------|
| revenues | 12.4 | 12.7 | 12.6 |
|----------------------------+------------+------------+------------|
| Equity per share, EUR | 4.62 | 3.75 | 4.13 |
|----------------------------+------------+------------+------------|
| Equity ratio, % | 48.0 | 60.5 | 52.9 |
|----------------------------+------------+------------+------------|
| Gross capital expenditure | | | |
|----------------------------+------------+------------+------------|
| (excluding acquisition of | | | |
|----------------------------+------------+------------+------------|
| TB Wood's) MEUR | 7.0 | 4.9 | 9.1 |
|----------------------------+------------+------------+------------|
| Gross capital expenditure, | | | |
|----------------------------+------------+------------+------------|
| % of revenues | 3.2 | 2.9 | 3.9 |
|----------------------------+------------+------------+------------|
| Net interest-bearing | | | |
|----------------------------+------------+------------+------------|
| liabilities MEUR | 11.3 | -8.0 | -11.0 |
|----------------------------+------------+------------+------------|
| Net gearing, % | 15.8 | -13.8 | -17.1 |
|----------------------------+------------+------------+------------|
| Net working capital | 38.7 | 25.5 | 26.0 |
|----------------------------+------------+------------+------------|
| Order book, MEUR | 56.0 | 33.4 | 34.8 |
|----------------------------+------------+------------+------------|
| Adjusted average | | | |
|----------------------------+------------+------------+------------|
| number of shares | | | |
|----------------------------+------------+------------+------------|
| during the | | | |
|----------------------------+------------+------------+------------|
| period | 15 244 714 | 15 225 247 | 15 226 997 |
|----------------------------+------------+------------+------------|
| Number of shares | | | |
|----------------------------+------------+------------+------------|
| at end of | | | |
|----------------------------+------------+------------+------------|
| period | 15 251 688 | 15 232 188 | 15 232 188 |
|----------------------------+------------+------------+------------|
| Personnel | | | |
|----------------------------+------------+------------+------------|
| at end of | | | |
|----------------------------+------------+------------+------------|
| period | 1 163 | 809 | 869 |
+-------------------------------------------------------------------+
Commitments and contingencies, MEUR
+--------------------------------------------------------+
| | 30.9.2008 | 30.9.2007 | 31.12.2007 |
|-------------------+-----------+-----------+------------|
| | | | |
|-------------------+-----------+-----------+------------|
| Commitments | | | |
|-------------------+-----------+-----------+------------|
| and contingencies | 2.9 | 1.2 | 1.1 |
|-------------------+-----------+-----------+------------|
| Financing | | | |
|-------------------+-----------+-----------+------------|
| commitments | 0.8 | 1.0 | 1.0 |
|-------------------+-----------+-----------+------------|
| | | | |
+--------------------------------------------------------+
Calculation of financial ratios
+-------------------------------------------------------------------+
| | Profit for the financial year attributable to |
| | equity |
|-------------+-----------------------------------------------------|
| | holders of the parent company |
|-------------+-----------------------------------------------------|
| Earnings | ------------------------------------------------- |
| per share = | |
|-------------+-----------------------------------------------------|
| | Adjusted average number of shares |
|-------------+-----------------------------------------------------|
| | |
|-------------+-----------------------------------------------------|
| | Equity attributable to the equity holders |
|-------------+-----------------------------------------------------|
| | of the parent company |
|-------------+-----------------------------------------------------|
| Equity per | ------------------------------------------------- |
| share = | |
|-------------+-----------------------------------------------------|
| | Adjusted average number of shares at year end |
|-------------+-----------------------------------------------------|
| | |
|-------------+-----------------------------------------------------|
| Equity | Shareholders' equity (incl. minority interest) x |
| ratio = | 100 |
| | |
|-------------+-----------------------------------------------------|
| | ------------------------------------------------- |
|-------------+-----------------------------------------------------|
| | Balance sheet total - advances received |
|-------------+-----------------------------------------------------|
| | |
|-------------+-----------------------------------------------------|
| | (Interest-bearing liabilities - cash, bank balances |
|-------------+-----------------------------------------------------|
| Net gearing | and financial assets) x 100 |
| = | |
|-------------+-----------------------------------------------------|
| | ------------------------------------------------- |
|-------------+-----------------------------------------------------|
| | Shareholders' equity (incl. minority interest) |
|-------------+-----------------------------------------------------|
| | |
|-------------+-----------------------------------------------------|
| Net working | Stocks + non-interest-bearing current receivables - |
| capital = | |
|-------------+-----------------------------------------------------|
| | non-interest-bearing current liabilities |
|-------------+-----------------------------------------------------|
| | |
+-------------------------------------------------------------------+
© 2024 Nasdaq, Inc. All Rights Reserved |