Vacon - Interim report (Q1 and Q3)

Vacon Plc Interim Report 1 January - 30 September 2012

Vacon Plc, Stock Exchange Release, 24 October 2012 at 9.30 am

In this stock exchange release Vacon is publishing information included in the
interim report that has a significant impact on the value of securities. The
full interim report is in the appendix to this release and can be downloaded
from the company's website in Finnish at www.vacon.fi and in English at
www.vacon.com.



July-September summary:

  * Order intake totalled MEUR 101.6 (MEUR 83.9), an increase of 21.1 % from the
    corresponding period in the previous year.
  * Revenues totalled MEUR 101.5 (MEUR 91.1), an increase of 11.4 %.
  * Operating profit was MEUR 10.2, or 10.1 % of revenues, (MEUR 8.2 and 9.1 %),
    growth of 23.6 %.
  * Net cash flow from operating activities was MEUR 17.4 (MEUR 19.8).
  * Earnings per share were EUR 0.45 (EUR 0.36), an increase of 25.8 %.



January-September summary:

  * Order intake totalled MEUR 307.4 (MEUR 288.4), an increase of 6.6 % from the
    corresponding period in the previous year.
  * Revenues totalled MEUR 285.2 (MEUR 293.2), a decline of 2.8 %.
  * Operating profit was MEUR 26.8, or 9.4 % of revenues (MEUR 28.6 and 9.8 %),
    a decline of 6.4 %.
  * Net cash flow from operating activities was MEUR 37.2 (MEUR 20.6).
  * Earnings per share were EUR 1.20 (EUR 1.29), down 7.1 %.



Key indicators

+-----------------------------------------+--------+--------+---------+
|MEUR                                     |7-9/2012|7-9/2011|Change, %|
+-----------------------------------------+--------+--------+---------+
|Order intake                             |   101.6|    83.9|   21.1 %|
+-----------------------------------------+--------+--------+---------+
|Revenues                                 |   101.5|    91.1|   11.4 %|
+-----------------------------------------+--------+--------+---------+
|Operating profit                         |    10.2|     8.2|   23.6 %|
+-----------------------------------------+--------+--------+---------+
|% of revenues                            |  10.1 %|   9.1 %|         |
+-----------------------------------------+--------+--------+---------+
|Operating profit excluding one-time items|        |        |         |
|                                         |    10.2|     8.2|   23.6 %|
+-----------------------------------------+--------+--------+---------+
|% of revenues                            |  10.1 %|   9.1 %|         |
+-----------------------------------------+--------+--------+---------+
|Profit before taxes                      |     9.9|     7.8|         |
+-----------------------------------------+--------+--------+---------+


+----------------------------------------+--------+--------+---------+---------+
|MEUR                                    |1-9/2012|1-9/2011|Change, %|1-12/2011|
+----------------------------------------+--------+--------+---------+---------+
|Order intake                            |   307.4|   288.4|    6.6 %|    365.3|
+----------------------------------------+--------+--------+---------+---------+
|Order book                              |    58.8|    47.3|   24.3 %|     36.6|
+----------------------------------------+--------+--------+---------+---------+
|Revenues                                |   285.2|   293.2|   -2.8 %|    380.9|
+----------------------------------------+--------+--------+---------+---------+
|Operating profit                        |    26.8|    28.6|   -6.4 %|     24.7|
+----------------------------------------+--------+--------+---------+---------+
|% of revenues                           |   9.4 %|   9.8 %|         |    6.5 %|
+----------------------------------------+--------+--------+---------+---------+
|Operating profit excluding one-time     |        |        |         |         |
|items                                   |    24.1|    29.1|         |     34.8|
+----------------------------------------+--------+--------+---------+---------+
|% of revenues                           |   8.4 %|   9.9 %|         |    9.1 %|
+----------------------------------------+--------+--------+---------+---------+
|Profit before taxes                     |    26.2|    28.4|         |     27.0|
+----------------------------------------+--------+--------+---------+---------+
|Net cash flow from operating activities |        |        |         |         |
|                                        |    37.2|    20.6|         |     26.8|
+----------------------------------------+--------+--------+---------+---------+
|Earnings per share, EUR                 |    1.20|    1.29|         |     1.10|
+----------------------------------------+--------+--------+---------+---------+
|Interest-bearing net liabilities        |    -1.7|    13.4|         |     12.4|
+----------------------------------------+--------+--------+---------+---------+
|Gearing, %                              |  -1.6 %|  10.8 %|         |   12.7 %|
+----------------------------------------+--------+--------+---------+---------+
|Gross capital expenditure               |     8.7|    13.7|  -36.7 %|     18.7|
+----------------------------------------+--------+--------+---------+---------+


General review

Vacon's business developed positively during the third quarter of 2012. Orders,
revenues and operating profit increased considerably from the corresponding
period in the previous year. The company's profitability, measured in terms of
the operating profit percentage, also improved. During the year, Vacon has
succeeded in increasing sales to several industrial sectors and consequently
succeeded in compensating the sharp fall in the sales of products for renewable
energy production.

Growth in Vacon's orders and revenues was strong in the third quarter and in the
January - September period especially in China and North America.

Orders received in July - September totalled EUR 101.6 (83.9) million. Orders in
the first nine months of the year totalled EUR 307.4 (288.4) million. The order
book rose by EUR 22.3 million from the beginning of the year, standing at EUR
58.8 (47.3) million at the end of the period.

Vacon had revenues in the July - September period of EUR 101.5 (91.1) million.
Revenues increased 11.4 % from the corresponding period in the previous year.
Revenues in January - September were EUR 285.2 (293.2) million, a decline of
2.8 % from the corresponding period in the previous year.

Vacon's revenues rose during the third quarter in line with expectations.
January - September revenues were lower than in the period for comparison, which
was due to weak demand for products designed for the generation of renewable
energy. During the year the company has however succeeded in raising its
revenues in other industrial sectors, such as building automation and the marine
industries.

Operating profit in July - September was EUR 10.2 million, or 10.1 % of revenues
(EUR 8.2 million and 9.1 %). Factors contributing to the improvement in
profitability were the increase in revenues in the third quarter, control of
costs and savings in material costs. Growth in profitability was restricted
however because sales focused on low power equipment.

The operating profit in January - September totalled EUR 26.8 million, or 9.4 %
of revenues (EUR 28.6 million and 9.8 %).

The company's balance sheet remained strong and the net cash flow from operating
activities was EUR 17.4 million in the third quarter, a decline of EUR 2.4
million from the corresponding period in the previous year. Net cash flow from
operating activities in the January - September period totalled EUR 37.2 (20.6)
million. Interest-bearing debt at the end of September totalled EUR 22.9
million, but the net debt was negative, EUR -1.7 million. Thanks to the strong
net cash flow from operating activities the company's gearing was -1.6 % (10.8
%).

Prospects for 2012

In Vacon's estimation, there are still uncertainties relating to general growth
prospects in the economy, and these may affect demand for AC drives in Europe
and possibly globally as well. However, Vacon expects demand for products to
control electric motors to remain at a good level in many industrial sectors in
the final quarter of 2012. Vacon estimates that orders for products for wind
power generation will improve slightly in the second half of 2012 from the first
half of the year, but order volumes for the whole year will be clearly below
their level in 2011.

Market guidelines for 2012

Vacon is retaining the market guidelines for 2012 that it published earlier.
Vacon estimates that its revenues will increase and the operating profit
percentage excluding one-time items will improve from 2011. In 2011 revenues
were EUR 380.9 million and the operating profit percentage excluding one-time
items was 9.1 %.

Vacon's target is to achieve revenues of EUR 500 million in 2014. The
profitability targets for 2014 are an operating profit of 14 % and a return on
equity of more than 30 %.

Formal statement

This release contains certain forward-looking statements that reflect the
current views of the company's management. Due to the nature of these
statements, they contain risks and uncertainties and are subject to changes in
the general economic situation and in the company's business sector.

Vacon in brief

Vacon is driven by a passion to develop, manufacture and sell the best AC drives
and inverters in the world - and to provide efficient life-cycle services for
its customers. Our AC drives offer optimum process control and energy efficiency
for electric motors. Vacon inverters are a key component in producing energy
from renewable sources. Vacon has R&D and production units in Europe, Asia and
North America, and sales companies in 27 countries. Vacon also has sales and
service representatives in almost 90 countries. In 2011, Vacon had revenues of
EUR 380.9 million and globally employed 1,500 people. The shares of Vacon Plc
(VAC1V) are quoted on the main list of the Helsinki stock exchange (NASDAQ OMX
Helsinki).

Driven by Drives, www.vacon.com

Vantaa, 24 October 2012

VACON PLC

Board of Directors



For more information please contact:

  * Mr Vesa Laisi, President and CEO, phone: +358 (0)40 8371 510
  * Ms Eriikka Söderström, CFO and Vice President, Finance & Control, phone:
    +358 (0)40 8371 445

Conference for media and analysts

Vacon will hold a briefing for analysts and the media at 11.30 am on 24 October
2012 at Pörssitalo (Stock Exchange building), Fabianinkatu 14 A, 2nd floor,
access through the reception for NASDAQ OMX Helsinki. The briefing will be in
Finnish.

Dial-in conference for investors and investment analysts

An international dial-in conference for investors and investment analysts will
be held at 3.00 pm (EET) on 24 October 2012. President and CEO Vesa Laisi and
Eriikka Söderström, 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 +358 (0)9 2310 1619 (Finland) or +44
(0)20 3106 7162 (UK). The conference ID code is 8112948. To hear a recording of
the conference, available for seven working days, call +358 (0)9 2310 1650
(Finland) or +44 (0)20 3427 0598 (UK). The ID code is 8112948.

  * Conference link: http://www.media-server.com/m/p/ne84bm2n

The presentation material will be available before the media briefing on Vacon's
website at: www.vacon.com > Investors.



DISTRIBUTION:

NASDAQ OMX Helsinki
Financial Supervisory Authority
Main Media


[HUG#1651787]

Attachments:

Vacon Plc Interim Report 1 January - 30 September 2012.pdf

Vacon Plc Q3 2012 Results Presentation.pdf