Vacon - Interim report (Q1 and Q3)

Vacon Plc Interim Report 1 January - 31 March 2013

Vacon Plc, Stock Exchange Release, 23 April 2013 at 9.30 pm (EET)

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.

January-March summary:

  * Order intake totalled MEUR 100.2 (MEUR 96.9), an increase of 3.4 % from the
    corresponding period in the previous year.
  * Revenues totalled MEUR 91.3 (MEUR 84.2), growth of 8.5 % from the
    corresponding period in the previous year.
  * Operating profit was MEUR 5.8, or 6.3 % of revenues (MEUR 6.4 and 7.7 %).
    One-time items totalling MEUR 1.4 boosted the operating profit in the
    previous year. Comparable operating profit in January-March 2012 was MEUR
    5.0 and 5.9 % of revenues.
  * Net cash flow from operating activities was MEUR 16.6 (MEUR 18.3).
  * Earnings per share were EUR 0.25 (EUR 0.29).
  * The AGM adopted the proposal of the Board of Directors to pay a dividend of
    EUR 1.10 per share.
  * At its constitutory meeting after the AGM, the Board of Directors elected
    Panu Routila as its new chairman.

January-March key indicators:

+---------------------------------------+--------+---------+---------+---------+
|MEUR                                   |        |restated*|         |restated*|
|                                       |1-3/2013| 1-3/2012|Change, %|1-12/2012|
+---------------------------------------+--------+---------+---------+---------+
|Order intake                           |   100.2|     96.9|    3.4 %|    401.9|
+---------------------------------------+--------+---------+---------+---------+
|Order book                             |    58.9|     49.3|   19.6 %|     50.0|
+---------------------------------------+--------+---------+---------+---------+
|Revenues                               |    91.3|     84.2|    8.5 %|    388.4|
+---------------------------------------+--------+---------+---------+---------+
|Operating profit                       |     5.8|      6.4|  -10.1 %|     38.0|
+---------------------------------------+--------+---------+---------+---------+
|% of revenues                          |   6.3 %|    7.7 %|         |     9.8%|
+---------------------------------------+--------+---------+---------+---------+
|Operating profit excluding one-time    |        |         |         |         |
|items                                  |     5.8|      5.0|   16.0 %|     36.5|
+---------------------------------------+--------+---------+---------+---------+
|% of revenues                          |   6.3 %|    5.9 %|         |    9.4 %|
+---------------------------------------+--------+---------+---------+---------+
|Profit before taxes                    |     6.0|      6.2|   -2.3 %|     37.1|
+---------------------------------------+--------+---------+---------+---------+
|Net cash flow from operating activities|        |         |         |         |
|                                       |    16.6|     18.3|   -9.0 %|     52.2|
+---------------------------------------+--------+---------+---------+---------+
|Earnings per share, EUR                |    0.25|     0.29|  -14.4 %|     1.72|
+---------------------------------------+--------+---------+---------+---------+
|Interest-bearing net liabilities       |        |         |         |         |
|                                       |   -21.1|     -3.0|         |    -10.3|
+---------------------------------------+--------+---------+---------+---------+
|Gearing, %                             | -22.2 %|   -3.4 %|         |    -9.5%|
+---------------------------------------+--------+---------+---------+---------+
|Gross capital expenditure              |     4.2|      3.1|   35.2 %|     14.0|
+---------------------------------------+--------+---------+---------+---------+

*Figures adjusted in accordance with IAS 19.

Business environment and business development

According to assessments by market research institutions and by Vacon, the
global AC drive market declined slightly in 2012. No significant changes took
place in the state of the market in the January-March 2013 period compared to
2012. Vacon estimates that the market did not grow during the first quarter of
2013.

Taking market developments into account, Vacon's business developed positively
during the first quarter of 2013. The company's revenues and order intake
increased in the January-March period from the corresponding period in the
previous year. Sales increased in the first quarter especially in building
automation and the marine industry. In contrast, sales to distributors, brand
label customers and the general process industry declined from the period for
comparison.

Vacon's revenues increased in January-March in the Asia Pacific (APAC) region
and in the Europe, Middle East and Africa (EMEA) region. Sales in North and
South America fell from the period for comparison.

The company's comparable profitability, measured in terms of the operating
profit percentage, improved slightly in the January-March period. However,
slower growth in revenues than expected and the emphasis in sales on low power
drives with a smaller profit margin slowed down the improvement in the company's
profitability.

Prospects for 2013

There were no signs of growth in the AC drive market in January-March, but Vacon
expects the market to pick up towards the end of the year. The company still
estimates that the global AC drive market will grow much faster than average
growth in industrial production, at an estimated rate of 5-10 % in 2013.

Vacon's strong order intake in January-March supports growth in the company's
revenues and improving profitability towards the end of the year. Other key
factors contributing to an improvement in profitability, in addition to the
growth in revenues, are the cost benefits from transferring material sourcing to
low cost countries and raising overall efficiency in operations. Improving the
company's profitability does not require a change in the sales product
breakdown, the profitability targets set can also be achieved with the existing
product breakdown.

Market guidelines for 2013

Vacon is retaining the market guidelines it published earlier and estimates that
its revenues will increase 5 - 15 % and that its operating profit percentage
excluding one-time items will be 10 - 12 % in 2013.

Revenues in 2012 totalled EUR 388.4 million and the operating profit percentage
excluding one-time items was 9.4 %.

Vacon's goal is to achieve revenues of EUR 500 million in 2014. Its
profitability target for 2014 is an operating profit of 14 %, and for return on
equity the target is more than 30 %.

Financial reports in 2013

Vacon is publishing two interim reports in 2013 as follows:

  * January-June: 1 August 2013
  * January-September:  22 October 2013

Formal statement

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

Vacon in brief

Vacon is driven by a passion to develop, manufacture and sell the best AC drives
and inverters in the world - and provide customers with efficient product
lifecycle services. Our AC drives offer optimum process control and energy
efficiency for electric motors. Vacon inverters play a key role when energy is
produced from renewable sources. Vacon has production and R&D facilities in
Europe, Asia and North America, and sales offices in 29 countries. Further,
Vacon has sales representatives and service partners in nearly 90 countries. In
2012, Vacon's revenues amounted to EUR 388.4 million, and the company employed
globally approximately 1,500 people. The shares of Vacon Plc (VAC1V) are quoted
on the main list of the Helsinki stock exchange (NASDAQ OMX Helsinki).

Driven by Drives, www.vacon.com

Vantaa 23 April 2013

VACON PLC

Board of Directors

For more information please contact:

  * Mr Vesa Laisi, President and CEO, phone: +358 (0)40 8371 510, e-mail
    vesa.laisi(at)vacon.com


Conference for media and analysts

A briefing for the financial analysts and media will be held on the same day at
Pörssitalo, Fabianinkatu 14 A, 2nd floor, Helsinki (entrance via NASDAQ OMX
Helsinki's reception) at 11:30 am Finnish time (EET).

Dial-in conference for investors and investment analysts

A dial-in conference for investors and investment analysts will be held at 3.00
pm (EET) on 23 April 2013. President and CEO Vesa Laisi and Sebastian Linko,
Director, Corporate Communications and Investor Relations will participate in
the conference. Please call +358(0)9 6937 9590 (Finland Toll) or
+44(0)20 3364 5381 (UK Toll) and request to be connected to the Vacon call
(Confirmation code 9491493). A recording of the conference will be available for
seven days at +358 (0)9 2310 1650 (Finland Toll) or +44 (0)20 3427 0598 (UK
Toll) and access code 9491493#.

Conference link: Webcast URL: http://www.media-server.com/m/p/k9jnsrh7

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

DISTRIBUTION:

NASDAQ OMX Helsinki
Financial Supervisory Authority
Main Media


[HUG#1695206]

Attachments:

Vacon Plc Result Presentation Q1 2013.pdf

Vacon Plc Interim Report January-March 2013 with tables.pdf