2010-11-05 08:00:00 CET
2010-11-05 08:01:15 CET
SÄÄNNELTY TIETO
Vaisala - Interim report (Q1 and Q3)
Vaisala Group Interim Report January-September 2010
Vaisala Corporation Stock exchange
release 5 November 2010 at 09.00 a.m.
Good order intake and net sales, operating result year-on-year declined. Full
year estimate downgraded. Third quarter result clearly positive.
- Net sales EUR 168.7 (151.5) million, growth 11.3%. Organic growth
of net sales 0.7%.
- Operating result EUR -4.7 (4.7) million. Pro forma operating result
2009, including QTT and Veriteq figures, was EUR 4.3 million. Delivery delays at
the end of the third quarter and one-off costs from personnel reductions booked
in the second quarter together burdened Vaisala's operating result by
approximately EUR 7 million.
- Earnings per share EUR -0.11 (0.10).
- Orders received EUR 197.4 (179.5) million, growth 10.0%.
- Cash flow from business operations EUR 9.7 (-15.0) million.
- Liquid assets EUR 30.4 (57.6) million.
The information presented in this document is unaudited.
1-9 1-9 Change 7-9 7-9 Change 1-12
2010 2009 (%) 2010 2009 (%) 2009
(MEUR) (MEUR) (MEUR) (MEUR) (MEUR)
Group net sales 168.7 151.5 11.3 64.7 55.6 16.3 231.8
- Meteorology 49.6 53.3 -6.9 18.5 18.7 -1.2 80.8
- Controlled Environment 44.6 37.1 20.3 17.7 12.5 40.8 49.2
- Weather Critical
Operations 74.5 61.1 21.9 28.5 24.4 17.0 101.8
Group operating result -4.7 4.7 6.4 6.3 1.2 12.0
- Meteorology -2.9 0.5 1.0 1.3 -20.7 3.4
- Controlled Environment 5.9 4.9 21.9 3.9 2.2 78.1 3.4
- Weather Critical
Operations -6.6 -0.6 0.7 1.8 -62.5 5.5
- Eliminations and other -1.2 -0.1 0.8 1.0 -0.4
Profit before taxes -3.4 2.3 3.7 5.9 -37.6 10.1
Net profit -1.9 1.8 -209.5 2.8 4.0 -29.2 6.9
Orders received 197.4 179.5 10.0 65.5 60.3 8.7 237.0
Order book 124.2 118.3 124.2 118.3 95.5
Earnings per share -0.11 0.10 -209.5 0.16 0.22 -29.2 0.38
Return on equity (%) -1.46 1.28 3.71
Comments on the third quarter
Third quarter marked a return to clearly positive operating result. Net sales in
the third quarter were 16.3% higher than in the corresponding period last year.
Delivery delays caused by component shortages and capacity constraints in the
supply network affected revenue generation. Production operates at maximum
capacity, however, delays still exist. The negative impact of the delays on
third quarter net sales was approximately EUR 11 million, and on operating
result approximately EUR 5 million.
Orders received and the order book remained at a higher level compared to the
situation a year ago.
On September 30, 2010, Vaisala signed a contract to sell its oxygen measurement
technology and business to SICK Maihak GmbH. A profit of EUR 1.3 million was
entered for the transaction. The profit was booked in Eliminations and other.
In 2009 a one-off reversal of bonus accruals, made in the third quarter,
improved the result by EUR 2 million. The reversal was booked in Eliminations
and other.
Business outlook
Uncertainty in the global economy and shifts in exchange rates are still
expected to affect Vaisala's business. Based on the structure of Vaisala's
customer base and the orders received, the company's market situation is
expected to remain mostly unchanged in 2010.
Uncertainty relating to the order backlog and delayed deliveries is high. As a
result of this, Vaisala downgrades its estimate for 2010 for both net sales and
profitability.
Earlier estimate: Vaisala's net sales in 2010 will grow slightly compared to the
preceding year. However, uncertainty relating to the net sales and profitability
towards the rest of the year remains. The development programs will continue to
burden the result for the rest of the year. Hence Vaisala estimates, in line
with the preliminary information published on June 23, 2010, that the full year
profitability will be slightly lower than in the previous year.
Adjusted estimate: Vaisala estimates that its net sales will be approximately at
last year's level, depending on how fast the delivery capability will be
restored and the delivery delays caught up. Operating profit year-on-year is
expected to decline.
Vaisala's long term business outlook remains unchanged and the company is fully
committed to implementing its growth strategy
President and CEO Kjell Forsén on Vaisala's result:"In the third quarter, orders received and the order book were at a higher level
than a year ago. Despite the negative impact of the delivery problems, our net
sales developed favorably and we saw a positive operating profit.
Our profitability was still affected by the weakened delivery capability. The
delayed order backlog is partly due to a global shortage of components and
partly due to capacity constraints in the supply network, which affects the
whole company in a major way. Though the situation is currently being restored,
there is a risk that some deliveries will slip into the first quarter of 2011.
We have been glad to see the markets picking up in the Controlled Environment
business, which reports a high growth rate. The new offering from the Veriteq
acquisition, targeted especially to the life science customers, was successfully
introduced to the European market in September. Similar entries will follow in
China and Japan before the end of the first quarter of 2011.
In September, we divested our oxygen measurement business to SICK Maihak GmbH.
The move is a logical step in the implementation of the Controlled Environment
business strategy, according to which Vaisala will focus on selected market
segments and a product portfolio tailored for them.
Our Roads business, where we also made a significant acquisition at the end of
last year, has been slower than expected during the first nine months of the
year, largely due to customer funding limitations at local and federal levels in
the U.S. We expect the situation to improve towards the end of the year and in
2011.
The first nine months of the year have been challenging for us, mostly because
of the supply situation and the necessary efficiency program initiatives that we
are implementing to improve Vaisala's profitability and competitiveness in the
long term. However, I strongly believe that these efforts, together with
Vaisala's world-leading expertise, will help us, our shareholders and our
customers prosper in the future."
Market situation, net sales and order book
The review period was positive for the Controlled Environment business area.
Uncertainty of the global economy is still reflected in the Meteorology and
Weather Critical Operations businesses.
However, market shares remain unchanged.
Vaisala Group's net sales grew by 11.3 percent year-on-year and totaled EUR
168.7 (151.5) million. The organic growth of net sales, including the revenues
of QTT and Veriteq in 2009 figures growth was 0.7 percent.
Delivery delays caused by component shortages and capacity constraints in the
supply network still affected the revenue. Production is operating at maximum
capacity, however, delays still exist. The negative impact of delivery delays on
the third quarter net sales was approximately EUR 11 million.
Net sales of the Weather Critical Operations business area grew by 21.9 percent
(organic growth of combined Vaisala and QTT -0.4 percent) and Controlled
Environment by 20.3 percent (organic growth of combined Vaisala and Veriteq
13.5 percent). Net sales of the Meteorology business area declined by 6.9
percent.
Operations outside Finland accounted for 98 (97) percent of net sales.
Net sales in euros grew by 29.2 percent in the APAC region to EUR 44.1 (34.1)
million, in the EMEA region by 7.0 percent to EUR 57.1 (53.4) million and in the
Americas region by 5.4 percent to EUR 67.4 (64.0) million. Organic growth in
Americas of combined Vaisala, QTT, and Veriteq was -15.6 percent.
The value of orders received increased by 10.0 percent year-on-year and totaled
EUR 197.4 (179.5) million.
The order book at the end of the review period stood at EUR 124.2 (118.3)
million. Of the order book, approximately EUR 52 million will be delivered in
2011 or later.
Performance and balance sheet
Operating result for the review period was EUR -4.7 (4.7) million, or -2.8
percent of net sales. Pro forma operating result 2009, including QTT and Veriteq
figures, was EUR 4.3 million.
Net sales and result were affected by delivery delays in May-September. The
negative impact of these on the net sales was approximately EUR 11 million and
on the operating result approximately EUR 5 million. The result was additionally
burdened by EUR 2.4 million one-off costs from personnel reductions, booked in
the second quarter.
The operating result was also burdened by low sales margins especially relating
to weather businesses in the emerging markets. Additionally, research and
development costs, one-off acquisition and reorganization costs as well as costs
related to the ERP project lowered the result.
On September 30, 2010, Vaisala signed a contract to sell its oxygen measurement
technology and business to SICK Maihak GmbH. A profit of EUR 1.3 million was
entered for the transaction.
Profit before taxes was EUR -3.4 (2.3) million or -2.0 percent of net sales. Net
profit for the review period was EUR -1.9 (1.8) million, or -1.1 percent of net
sales.
Vaisala Group's solvency ratio and liquidity remained strong. On September
30, 2010, the balance sheet total was EUR 228.2 (209.6) million. The Group's
solvency ratio at the end of the review period was 79 (87) percent.
The cash flow from business operations was EUR 9.7 (-15.0) million. Vaisala's
consolidated liquid assets totaled EUR 30.4 (57.6) million.
Capital expenditure
Gross capital expenditure totaled EUR 23.6 (12.8) million.
On April 1, 2010 Vaisala acquired Veriteq Instruments Inc, a Canadian company
operating in the life science markets.
The value of the deal was EUR 8.1 million, including a conditional purchase
price of EUR 1.2 million. The deal significantly strengthens Vaisala's position
in the life science markets, complementing the current competences and product
offering. According to preliminary calculations, these synergy benefits have
accrued to EUR 3.4 million goodwill.
The gradual implementation of Vaisala's new ERP system is continuing during this
and next year.
The project to build new office space in Vantaa, Finland, is progressing
according to plan. The estimated date of accomplishment is at the end of 2010.
Meteorology
Net sales of the Meteorology business area declined by 6.9 percent year-on-year
to EUR 49.6 (53.3) million. Operating result for the review period was EUR -2.9
(0.5) million.
Net sales and result were affected by delivery delays in May-September. The
negative impact of these on the net sales was approximately EUR 2 million and on
the operating result approximately EUR 0.9 million. The result was additionally
burdened by EUR 0.9 million one-off costs from personnel reductions, booked in
the second quarter.
Lower net sales in Meteorology were due to the fact that there were no large
project deliveries in January-September. The subsequent decline in sales volumes
lowered the profitability of this business. The profitability of project
business is typically low in the emerging markets in a market-entry phase.
The value of orders received for Meteorology was EUR 55.7 (68.4) million and the
order book stood at EUR 42.7 million at the end of the review period.
Controlled Environment
On April 1, 2010 Vaisala acquired Veriteq Instruments Inc, a Canadian company
operating in the life science markets.
Veriteq is a leading provider of productized continuous monitoring systems and
data logger solutions for the life science industry comprising of
pharmaceutical, biotechnological and medical device companies. Veriteq
Instruments Inc. reached EUR 5 million net sales in 2009. The company is located
in Vancouver, Canada and employs approximately 40 people. The acquisition will
significantly strengthen Vaisala's position in the Life Science markets,
complementing the current competences and offering.
Net sales of the Controlled Environment business area grew by 20.3 percent year-
on-year to EUR 44.6 (37.1) million. Organic growth of combined Vaisala and
Veriteq was 13.1 percent. Operating profit for the review period was EUR 5.9
(4.9) million.
Net sales and result were affected by delivery delays in May-September. The
negative impact of these on the net sales was approximately EUR 1 million and on
the operating profit approximately EUR 0.6 million. The result was additionally
burdened by EUR 0.4 million one-off costs from personnel reductions, booked in
the second quarter.
Biggest growth was seen in the Life Science business.
The value of orders received for Controlled Environment was EUR 47.1 (36.3)
million and the order book stood at EUR 5.8 million at the end of the review
period.
Weather Critical Operations
Net sales of the Weather Critical Operations business area grew by 21.9 percent
year-on-year to EUR 74.5 (61.1) million. Organic growth of combined Vaisala and
QTT companies was -0.4 percent.
Operating result for the review period was EUR -6.6 (-0.6) million.
Net sales and result were affected by delivery delays in May-September. The
negative impact of these on the net sales was approximately EUR 7 million and on
the operating result approximately EUR 3.2 million. The result was additionally
burdened by EUR 1.1 million one-off costs from personnel reductions, booked in
the second quarter. The operating result includes EUR 0.8 million one-off
reorganization costs relating to QTT integration, booked in the first quarter.
The arrangements aim at EUR 3-4 million synergy savings annually, starting in
2011.
The value of orders received for Weather Critical Operations was EUR 94.5 (74.7)
million and the order book stood at EUR 75.7 million at the end of the review
period.
On August 5, 2010, Vaisala announced an agreement with the Port Authority of New
York and New Jersey for Road Weather Information Systems (RWIS) equipment,
lightning detection, weather forecasting, software and data services, and 10-
year maintenance services. The value of the agreement is USD 5 million and it
covers turnkey deliveries to all five airports operated by the Port Authority -
John F. Kennedy, LaGuardia, Newark, Teterboro and Stewart International.
Other functions
Research and development
Expenditure in research and development totaled EUR 24.0 (19.1) million,
representing 14.3 percent of the Group's net sales.
The share of research and development expenses of the Group's net sales will
remain high in 2010. This is due to additional efficiency measures aiming at the
alignment of technology platforms and improved product modularity, usability and
mass customization capability. However, relative share of R&D expenditure is
expected to decrease in 2011.
Vaisala launched nine new products in the first quarter. The most significant of
these were Vaisala Ceilometer CL51; Vaisala HUMICAP Humidity and Temperature
Probes HMP60 and HMP110 for humidity and temperature measurement; and Vaisala
MetMan Webview 2.0, a web based meteorological data visualization software.
Four new products were launched in the second quarter: Vaisala WINDCAP
Ultrasonic Wind Sensor WMT700 Series for demanding meteorological and aviation
applications, Vaisala Road Weather Advisor and the Vaisala Road Weather
Observer, web-based road weather data visualization applications enabling road
weather network monitoring, Vaisala MARWIN sounding system MW32 for defense use
and Vaisala Boundary Layer View (BL-VIEW) application software for Vaisala
ceilometers.
In the third quarter, two new products were launched: Vaisala CARBOCAP Carbon
Dioxide and Temperature Transmitter GMW116, a wall-mounted sensor designed for
heating, ventilating and air conditioning (HVAC) applications; and Vaisala Road
Weather Navigator 2.0 WID733, a web-based road weather data visualization
application that enables the customers to observe their road weather network and
effectively manage their operations.
Services
Vaisala's service business is reported as part of the business areas. Services
sales in the review period totaled EUR 22.2 (20.0) million.
Personnel
The average number of people employed in the Vaisala Group in the review period
was 1,423 (1,288). Some 44 (39) percent of the personnel was based outside
Finland. The number of employees at the end of the review period was 1,376
(1,307).
The consultation processes initiated in May 2010 ended in June 2010. In total,
the company reduced its personnel by 79 people, of which 49 in Finland.
Vaisala has two types of incentive plans; one based on the development of sales
and profitability and covering all employees, and the other, three-year plan,
based on the development of profitability and covering key personnel.
Changes in Vaisala Corporation's management
Ari Meskanen, the Chief Technology Officer (CTO) of Vaisala was appointed Senior
Vice President, Group Marketing and Sales starting January 1, 2010.
Petteri Naulapää was appointed Chief Information Officer (CIO) and a member of
the group's strategic management group starting February 16, 2010. Jussi
Kallunki, the former CIO was appointed Vaisala's Chief Risk Officer.
Kai Konola was appointed Executive Vice President of the Weather Critical
Operations Business Area and a member of the group's management group starting
July 1, 2010.
Near-term risks and uncertainties
The most significant near term risks and uncertainties are estimated to relate
to the company's ability to catch up with the delivery delays and restore its
project delivery capabilities, availability of critical components, changes in
the global economy, shifts of currency exchange rates, interruptions in
manufacturing, customers' financing capability, changes in purchasing or
investment behavior, and delays or cancellations of orders and deliveries
Market development and the realization of projects in the industrial segments
affect the net sales and operating result. The company has additionally expanded
its project activities into emerging markets where the profitability of the
projects is lower than normally, due to the market-making nature of the
business. The share of project business out of the total business volume is also
growing. Should the assumptions regarding the profitability and new business
opportunities in the project business prove wrong, this may constitute risks for
Vaisala's net sales and profit.
Changes in subcontractor relations, their operations or operating environment
may have a negative impact on Vaisala's business. Vaisala monitors these risks
and prepares for them in accordance with the company's risk management policy.
Vaisala is currently implementing significant development projects and
organizational changes, which are building the foundation for a successful
execution of Vaisala's new strategy. A new Group-wide ERP system is in the
implementation phase. These efforts together with the ongoing efficiency program
constitute a short-term risk regarding Vaisala's net sales and profit.
Vaisala has made acquisitions and their impact on net sales and operating result
depends essentially on the success of integration activities. In case the
assumptions about achievable synergies prove incorrect or the integration fails,
these constitute a short-term risk regarding Vaisala's net sales and result.
Vaisala's shares
As at the end of the review period, the Group's Board of Directors had no valid
authorizations for increasing the share capital, granting special rights, or
issuing stock option rights.
On December 31, 2009, the price of Vaisala's A share in the NASDAQ OMX Helsinki
was EUR 25.10, and at the end of the review period, the share price was EUR
20.58. The highest quotation during the review period was EUR 25.77 and the
lowest EUR 18.52. The number of shares traded in the stock exchange during the
review period was 2,033,232.
On September 30, 2010, Vaisala has 18,218,364 shares, of which 3,394,284 are
series K shares and 14,824,080 are series A shares. The shares have no counter
book value. The K shares and A shares are differentiated by the fact that each K
share entitles its owner to 20 votes at the 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.
The market value of Vaisala's A shares on September 30, 2010 was EUR 304.9
million, excluding the Company's own 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 final day of the financial year, the total year-end market value of all the
A and K shares together was EUR 374.7 million, excluding the Company's own
shares.
Vaisala's main shareholders are listed on the Group website and in the appendix
of the financial statements.
Conversion of unlisted series K shares into series A
Vaisala Corporation's 400 unlisted shares (series K) were converted into listed
shares (series A). The conversion was registered in the Finnish Trade Register
on April 14, 2010. Listing of the new series A shares was applied for as of
April 15, 2010.
Vaisala Corporation's 3000 unlisted shares (series K) were converted into listed
shares (series A). The conversion was registered in the Finnish Trade Register
on June 29, 2010. Listing of the new series A shares was applied for as of June
30, 2010.
Treasury shares and parent company shares
At the end of the review period, the Company held a total of 9,150 Vaisala A
shares, which represented 0.05% of the share capital and 0.01% of the votes. The
consideration paid for these shares was EUR 251,898.31.
Decisions made by the Annual General Meeting
Vaisala Oyj's Annual General Meeting was held on March 25, 2010 in Vantaa. The
Annual General Meeting confirmed the annual accounts for 2009 and granted the
Members of the Board of Directors and the Company's President and CEO discharge
from liability for the accounts between 1.1.-31.12.2009.
The Annual General Meeting confirmed, based on the proposal by the Board of
Directors, that a dividend of EUR 0.65 per share, corresponding to the total of
EUR 11,835,989.10, was to be distributed for the financial year 2009. Dividend
was not paid to the A-shares that are held by Vaisala Corporation. Dividend was
paid on April 8, 2010.
The Annual General Meeting decided that the Board of Directors continues to
comprise of six members. Yrjö Neuvo and Maija Torkko, who were to retire by
rotation were re-elected for three years. Other members in the Board of
Directors are Raimo Voipio, Mikko Niinivaara, Mikko Voipio and Stig Gustavson.
The Annual General Meeting decided on the annual remuneration of the Board of
Directors to be as follows: chairman EUR 35,000, and a member EUR 25,000.
The Annual General Meeting decided to authorize the Board of Directors to donate
a maximum of EUR 250,000 to the universities. The authorization is valid until
the Annual General Meeting in 2011.
Auditors
PricewaterhouseCoopers Oy and Mr. Hannu Pellinen APA were chosen as the
Company's Authorized Public Accountants.
Board of Directors' organizing meeting
Raimo Voipio will continue as the Chairman of the Board of Directors, and Yrjö
Neuvo as Vice Chairman. Maija Torkko, Mikko Niinivaara, Mikko Voipio and Stig
Gustavson are members of the Board.
Vantaa, Finland, November 4, 2010
Vaisala Corporation
Board of Directors
The forward-looking statements in this release are based on 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.
Further information about the risks and risk management in Vaisala is available
in the 2009 online Annual Report and on the internet at
http://www.vaisala.com/annualreport2009/riskmanagement.html
Financial indicators 1-9 1-9 7-9 7-9 1-12
2010 2009 2010 2009 2009
Return on equity (ROE) -1.5% 1.3% 3.7%
Number of shares (1000 pcs) 18,209 18,209 18,209 18,209 18,209
Number of shares (1000 pcs), weighted average 18,209 18,209 18,209 18,209 18,209
Adjusted number of shares (1000 pcs) 18,209 18,209 18,209 18,209 18,209
Earnings/share (EUR) -0.11 0.10 0.16 0.22 0.38
Earnings/share (EUR),fully diluted -0.11 0.10 0.16 0.22 0.38
Net cash flow from operating activities/share
(EUR) 0.53 -0.82 -0.17
Equity/share (EUR) 9.29 9.59 9.29 9.59 9.90
Solvency ratio 79 % 87 % 79 % 87 % 81 %
Gross capital expenditure (EUR Million) 23.6 12.8 4.7 3.4 27.7
Depreciation 10.0 7.2 3.5 2.4 9.6
Average personnel 1,423 1,288 1,418 1,330 1,302
Order book (EUR Million) 124.2 118.3 124.2 118.3 95.5
Liabilities from derivative contracts 20.0 16.3 20.0 16.3 15.8
The interim report has been prepared in accordance with the IAS 34 standard,
following the same accounting principles as in the annual financial statements
of 2009. The Group adopts the standards and amendments in effect on 1.1.2010.
Further information is available in the online Annual Report from 2009. The
information presented in the interim report is unaudited.
CONSOLIDATED INCOME STATEMENT (IFRS, EUR Million)
1-9 1-9 Change 7-9 7-9 Change 1-12
2010 2009 % 2010 2009 % 2009
Net sales 168.7 151.5 11.3 64.7 55.6 16.3 231.8
Cost of production and
procurement -86.5 -78.6 10.0 -31.6 -28.4 11.2 -121.1
Gross profit 82.2 72.9 12.8 33.1 27.2 21.5 110.7
Other operating income 1.4 0.1 1793.3 1.3 0.1 1956.9 0.1
Cost of sales and
marketing -43.9 -34.1 28.6 -14.8 -11.1 33.4 -49.0
Development costs -24.0 -19.1 25.8 -7.3 -6.4 12.6 -28.4
Other administrative
costs -20.4 -15.0 -235.7 -6.0 -3.5 73.4 -21.4
Operating result -4.7 4.7 -201.1 6.4 6.3 1.2 12.0
Financial income and
expenses 1.3 -2.4 -156.5 -2.7 -0.5 506.2 -1.9
Profit before tax -3.4 2.3 -246.4 3.7 5.9 -37.6 10.1
Income taxes 1.5 -0.6 -361.5 -0.8 -1.9 -55.9 -3.2
Profit after tax -1.9 1.8 -209.5 2.8 4.0 -29.2 6.9
Attributable to Equity
holders of the parent -1.9 1.8 -209.5 2.8 4.0 -29.2 6.9
Taxes for the review period have been calculated under taxes.
Earnings per share for profit attributable to the equity holders of the
parent
Basic earnings per share, € -0.11 0.10 -209.5 0.16 0.22 -29.1 0.38
Diluted earnigns per share,€ -0.11 0.10 -209.5 0.16 0.22 -29.1 0.38
STATEMENT OF COMPREHENSIVE INCOME
Profit for the year -1.9 1.8 -209.5 2.8 4.0 -29.2 6.9
Other comprehensive income
Exchange differences on translating
foreign operations 2,6 -1.3 -292.0 -8.2 -1.3 539.8 -0.8
---------------------------------------------
Total comprehensive income 0.7 0.4 -5.3 2.7 6.1
---------------------------------------------
Total comprehensive income
attributable to:
Equity holders of the parent 0.7 0.4 -65.1 -5.3 2.7 -295.2 6.1
CONSOLIDATED STATEMENT OF FINANCIAL
POSITION (EUR million) 30.9.2010 30.9.2009 Change 31.12.2009
%
ASSETS
NON-CURRENT ASSETS
Intangible assets 40.7 16.4 148.5 23.7
Tangible assets 48.3 44.2 9.2 49.8
Investments in associates 0.5 0.5 -7.2 0.5
Other financial assets 0.3 0.1 127.8 0.1
Long-term receivables 0.1 0.1 4.9 0.3
Deferred tax assets 6.4 6.5 -1.6 5.7
CURRENT ASSETS
Inventories 33.2 34.0 -2.2 27.3
Trade and other receivables 56.5 44.8 26.2 67.9
Accrued income tax receivables 11.7 5.3 120.1 6.2
Cash and cash equivalents 30.4 57.6 -47.2 50.1
TOTAL ASSETS 228.2 209.6 8.9 231.4
SHAREHOLDERS' EQUITY AND LIABILITIES
Equity attributable to equity holders of the parent
Share capital 7.7 7.7 0.0 7.7
Share premium reserve 16.6 16.6 0.0 16.6
Reserve fund 0.2 0.2 10.5 0.2
Translation differences -2.3 -5.4 -57.3 -4.8
Profit from previous years 149.1 154.1 -3.2 154.0
Own shares -0.3 -0.3 0.0 -0.3
Profit for the financial year -1.9 1.8 -209.5 6.9
Total equity 169.1 174.6 -3.2 180.3
Liabilities
Long-term liabilities
Retirement benefit obligations 1.6 0.4 334.4 1.2
Interest-bearing liabilities 1.0 0.1 882.0 0.7
Provisions 0.1 0.1 9.7 0.1
Deferred tax liabilities 0.4 0.0 0.3
Current liabilities
Current interest-bearing liabilities 5.2 0.2 3,101.2 0.3
Advances received 13.6 9.9 36.8 10.2
Accrued income tax payables 0.1 0.0 -643.8 0.3
Trade and other payables 37.3 24.4 53.0 38.0
TOTAL SHAREHOLDERS' EQUITY AND
LIABILITIES 228.2 209.6 8.9 231.4
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY September 30, 2010
(EUR million)
a* b* c* d* e* f* g* h*
--------------------------------------------------------------------------------
Balance at December
31, 2009 7.7 0.0 16.6 0.2 -0.3 -4.9 160.9 180.3
--------------------------------------------------------------------------------
Total comprehensive income for the
year 0.0 2.6 -1.9 0.7
Other changes 0.0
Dividend paid -11.8 -11.8
--------------------------------------------------------------------------------
Balance at September
30, 2010 7.7 0.0 16.6 0.2 -0.3 -2.3 147.2 169.1
--------------------------------------------------------------------------------
a* b* c* d* e* f* g* h*
--------------------------------------------------------------------------------
Balance at December
31, 2008 7.7 0.0 16.6 0.2 -0.3 -4.1 170.4 190.6
--------------------------------------------------------------------------------
Total comprehensive income for the
year 0.0 -1.3 1.8 0.4
Other changes 0.0
Dividend paid -16.4 -16.4
--------------------------------------------------------------------------------
Balance at September
30, 2009 7.7 0.0 16.6 0.2 -0.3 -5.4 155.8 174.6
--------------------------------------------------------------------------------
a*= Share capital
b*= Share issue
c*= Share premium Reserve
d*= Reserve fund
e*= Own shares
f*= Translation differences
g*= Retained earnings
h*= Total equity
CONSOLIDATED CASH FLOW STATEMENT (EUR million)
1-9 1-9 Change 1-12
2010 2009 % 2009
Cash flows from operating activities
Cash receipts from customers 189.9 162.5 16.8 225.7
Other income from business operations 0.0 0.0 0.0
Cash paid to suppliers and employees -176.0 -168.7 4.3 -218.0
Interest received 0.1 0.8 -84.8 1.0
Interest paid -0.1 -0.1 -11.7 -0.1
Other financial items, net 0.5 -1.4 -134.4 -1.4
Dividend received from business operations 0.0 0.0 -350.0 0.0
Direct tax paid -4.7 -8.1 -41.7 -10.3
Cash flow from business operations (A) 9.7 -15.0 -165.1 -3.2
Cash flow from investing activities
Investments in intangible assets -12.9 -0.7 1759.7 -1.3
Investments in tangible assets -4.2 -10.0 -58.0 -13.7
Acquisition of subsidiary, net of cash acquired -6.5 -1.7 276.1 -16.7
Proceeds from sale of fixed assets 1.0 0.1 1673.7 0.1
Other investments 0.1 0.0 -515.0 -0.1
Financial assets recognised at
fair value through profit and loss 0.0 23.2 -100.0 23.2
Cash flow from investing activities (B) -22.5 10.8 -308.2 -8.5
Cash flow from financing activities
Withdrawal of short-term loans 5.0 0.0 0.0
Repayment of short-term loans 0.0 -0.1 -100.0 -0.1
Withdrawal of long-term loans 0.0 0.0 0.0
Repayment of long-term loans 0.0 0.0 0.0
Dividend paid and other distribution of profit -11.8 -16.4 -27.8 -16.4
Cash flow from financing activities (C) -6.8 -16.5 -58.6 -16.5
Change in liquid funds (A+B+C) increase (+) /
decrease (-) -19.6 -20.7 -5.3 -28.2
Liquid funds at beginning of period 50.1 78.1 -35.9 78.1
Foreign exchange effect on cash -0.1 0.2 -142.4 0.2
Net increase in cash and cash equivalents -19.6 -20.7 -5.3 -28.2
Liquid funds at end of period 30.4 57.6 -47.1 50.1
Segment Report
Business segments
1-9/2010 WCO * CEN * MET * Other operations Group
EUR Million
Net sales to external customers 74.5 44.6 49.6 0.0 168.7
Net sales 74.5 44.6 49.6 0.0 168.7
Operating result -6.6 5.9 -2.9 -1.2 -4.7
Financial income and expenses 1.3
Share of associated companies' net profit 0.0
Net profit before taxes -3.4
Income taxes 1.5
Net profit -1.9
Depreciation 2.0 0.0 1.1 6.9 10.0
* WCO= Weather critical operations
* CEN = Controlled environment
* MET= Meteorology
1-9/2009 WCO * CEN * MET * Other operations Group
EUR Million
Net sales to external customers 61.1 37.1 53.3 0.0 151.5
Net sales 61.1 37.1 53.3 0.0 151.5
Operating result -0.6 4.9 0.5 -0.1 4.7
Financial income and expenses -2.4
Share of associated companies' net profit 0.0
Net profit before taxes 2.3
Income taxes -0.6
Net profit 1.8
Depreciation 0.6 0.1 1.1 5.4 7.2
* WCO= Weather critical operations
* CEN = Controlled environment
* MET= Meteorology
7-9/2010 WCO * CEN * MET * Other operations Group
EUR Million
Net sales to external customers 28.5 17.7 18.5 0.0 64.7
Net sales 28.5 17.7 18.5 0.0 64.7
Operating result 0.7 3.9 1.0 0.8 6.4
Financial income and expenses -2.7
Share of associated companies' net profit 0.0
Net profit before taxes 3.7
Income taxes -0.8
Net profit 2.8
Depreciation 0.6 0.0 0.4 2.5 3.5
* WCO= Weather critical operations
* CEN = Controlled environment
* MET= Meteorology
7-9/2009 WCO * CEN * MET * Other operations Group
EUR Million
Net sales to external customers 24.4 12.5 18.7 0.0 55.6
Net sales 24.4 12.5 18.7 0.0 55.6
Operating result 1.8 2.2 1.3 1.0 6.3
Financial income and expenses -0.5
Share of associated companies' net profit 0.0
Net profit before taxes 5.9
Income taxes -1.9
Net profit 4.0
Depreciation 0.2 0.0 0.3 1.8 2.4
* WCO= Weather critical operations
* CEN = Controlled environment
* MET= Meteorology
1-12/2009 WCO * CEN * MET * Other operations Group
EUR Million
Net sales to external customers 101.8 49.2 80.8 0.0 231.8
Net sales 101.8 49.2 80.8 0.0 231.8
Operating result 5.5 3.4 3.4 -0.4 12.0
Financial income and expenses -1.9
Share of associated companies' net profit 0.0
Net profit before taxes 10.1
Income taxes -3.2
Net profit 6.9
Depreciation 0.8 0.1 1.4 7.3 9.6
* WCO= Weather critical operations
* CEN = Controlled environment
* MET= Meteorology
Notes
Company acquisitions
Veriteq Instruments Inc.
On April 1, 2010 Vaisala acquired Veriteq Instruments Inc, a company located in
Vancouver, Canada. Veriteq is a leading provider of productized continuous
monitoring systems and data logger solutions for the life science industry,
comprising of pharmaceutical, biotechnological and medical device companies.
Veriteq Instruments Inc. reached EUR 5.0 million net sales in 2009. The company
employs approximately 40 persons. Vaisala's ownership of Veriteq after the
acquisition is 100%.
Net sales of the acquired company between April 1, 2010 and September 30, 2010
were EUR 2.4 million and operating result EUR -0.9 million. Had the acquisition
taken place on January 1, 2010, the group net sales would have been EUR 172.2
million and net profit EUR -2.9 million.
The acquisition will strengthen Vaisala's position in the life science market.
The global life science industry is strictly regulated by international and
national authorities. In order to protect their high value goods and to comply
with the regulations, the companies need to monitor and control the conditions
of their critical environments such as cleanrooms, laboratories and warehouses.
Life science is a focus area for Vaisala's Controlled Environments business, and
the acquisition of Veriteq, with its life science emphasis, aligns perfectly
with Vaisala's strategy. The life science industry represents an extensive
market with a steady growth rate and demanding customers who are used to working
with companies that provide the most reliable products and services. Vaisala is
currently known as an instrument provider in the global pharmaceutical market,
but the objective is to expand the offering both to pharmaceutical and other
life science customers. Through the acquisition of Veriteq, Vaisala gets access
to additional knowhow, customer base, products and services.
The acquired new knowledge, customer base, product base and services together
with the synergy benefits accrue to goodwill of EUR 3.4 million. Expenses
relating to the acquisition, EUR 45 thousand, have been booked to other
administration costs.
The purchase price, EUR 8.1 million, includes contingent purchase price, the
range of which is EUR 0 to EUR 1.6 million. The contingent purchase price is
divided into two categories, one that is dependent on the development of net
sales (0- EUR 0.7 million) and the other that is dependent on the retention of
key employees (0 - EUR 0.9 million).
The management estimates that the portion depending on the retention of the key
employees will realize in full and 50% of the net sales targets will realize. At
the time of the acquisition, the contingent purchase price of EUR 1.2 million
was booked.
Purchase consideration:
EUR million
Purchase price paid 6.8
Contingent purchase price 1.2
------
Total purchase cost 8.1
Fair value of the acquired net
identifiable assets -4.7
------
Goodwill 3.4
Assets and liabilities arising
from Fair value recognized Acquiree's carrying amount
the acquisition are as follows in combination before combination
Tangible assets 0.2 0.2
Intangible assets
Producton process
(Calibration algorithm) 0.1 0.0
Quality system 0.1 0.0
Patents 0.0 0.0
Products 2.8 0.0
Trademark 0.7 0.0
Customer value 0.1 0.0
Inventories 0.5 0.5
Receivables 1.3 1.4
Cash and cash equivalents 0.4 0.4
Non-interest-bearing
liabilities -0.4 -0.4
Interest-bearing liabilities -1.4 -1.4
------ ------
Net identifiable assets 4.7 0.6
Acquisition cost 8.1
------
Goodwill 3.4
Purchase consideration settled
in cash 6.8
Cash and cash equivalents in
subsidiary acquired -0.4
------
Cash outflow on acquisition 6.5
Reconciliation of the carrying amount of goodwill at the beginning and end of
the reporting period
EUR million
Goodwill at the beginning of
the reporting period 30 June,
2010 3.1
Foreign exchange effect -0.3
Reconciliation of the net
working capital -0.1
Increase in contingent purchase
price 0.7
------
Goodwill at the end of the
period 30 September, 2010 3.4
Calculation of financial indicators
Shareholders' equity plus minority
interest
Solvency ratio, (%) = --------------------------------------- x 100
Balance sheet total less advance payments
Profit before taxes less taxes
+/- minority interest
Earnings / share = ---------------------------------------
Average number of shares, adjusted
Cash flow from business operations
Cash flow from
business = ---------------------------------------
operations / share Number of shares at balance sheet date
Shareholders' equity
Equity / share = ---------------------------------------
Number of shares at balance sheet date,
adjusted
Dividend
Dividend / share = ----------------------------------------
Number of shares at balance sheet date,
adjusted
Profit before taxes less taxes
Return on equity,
(ROE) (%) = ------------------------------------------- x 100
Shareholders' equity + minority interest (average)
Further information:
Jouni Lintunen, CFO
Tel +358 9 8949 2215, mobile +358 40 579 0181
www.vaisala.com
Vaisala Corporation
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