2014-02-06 08:30:00 CET
2014-02-06 08:31:07 CET
REGULATED INFORMATION
Vacon - Financial Statement Release
Vacon Plc Financial Statement Bulletin 1 January - 31 December 2013
Vacon Plc, Stock Exchange Release, 6 February 2014 at 9.30 am (EET)
In this stock exchange release Vacon is publishing information that has a
significant impact on securities included in the financial statements. The full
financial statements are in the appendix to this release and can be downloaded
from the company's website in English at www.vacon.com and in Finnish at
www.vacon.fi.
October-December summary:
* Order intake totalled MEUR 87.7 (MEUR 94.4), a decline of 7.1% from the
corresponding period in the previous year.
* Revenues totalled MEUR 97.8 (MEUR 103.2), a decline of 5.2% from the
corresponding period in the previous year.
* Operating profit excluding one-time items was MEUR 9.7, or 9.9 % of revenues
(MEUR 12.2 and 11.8 % of revenues).
* Operating profit was MEUR 9.7, or 9.9 % of revenues (MEUR 11.0 and 10.7% of
revenues).
* Net cash flow from operating activities was MEUR 14.7 (MEUR 15.1).
* Earnings per share were EUR 0.44 (EUR 0.51).
January-December summary:
* Order intake totalled MEUR 399.8 (MEUR 401.9), a decline of 0.5% from the
previous year.
* Revenues totalled MEUR 403.0 (MEUR 388.4), an increase of 3.8% from the
previous year.
* Operating profit excluding one-time items was MEUR 40.6, or 10.1 % of
revenues (MEUR 36.5 and 9.4 % of revenues).
* Operating profit was MEUR 40.6, or 10.1 % of revenues (MEUR 38.0 and 9.8 %
of revenues).
* Net cash flow from operating activities was MEUR 46.7 (MEUR 52.3).
* Earnings per share were EUR 1.84 (EUR 1.72).
* The Board of Directors proposes to the Annual General Meeting of
Shareholders that a dividend of EUR 1.30 per share be paid from the profit
for 2013.
October-December key indicators:
+-----------------------------------------+----------+----------+---------+
|MEUR | | restated*| |
| |10-12/2013|10-12/2012|Change, %|
+-----------------------------------------+----------+----------+---------+
|Order intake | 87.7| 94.4| -7.1%|
+-----------------------------------------+----------+----------+---------+
|Revenues | 97.8| 103.2| -5.2%|
+-----------------------------------------+----------+----------+---------+
| | | | |
|Operating profit excluding one-time items| 9.7| 12.2| -20.7%|
+-----------------------------------------+----------+----------+---------+
|% of revenues | 9.9%| 11.8%| |
+-----------------------------------------+----------+----------+---------+
|Operating profit | 9.7| 11.0| -12.1%|
+-----------------------------------------+----------+----------+---------+
|% of revenues | 9.9%| 10.7%| |
+-----------------------------------------+----------+----------+---------+
|Profit before taxes | 9.2| 10.7| -14.2%|
+-----------------------------------------+----------+----------+---------+
January-December key indicators:
+-----------------------------------------+---------+---------+---------+
|MEUR | |restated*| |
| |1-12/2013|1-12/2012|Change, %|
+-----------------------------------------+---------+---------+---------+
|Order intake | 399.8| 401.9| -0.5%|
+-----------------------------------------+---------+---------+---------+
|Order book | 46.8| 50.0| -6.4%|
+-----------------------------------------+---------+---------+---------+
|Revenues | 403.0| 388.4| 3.8%|
+-----------------------------------------+---------+---------+---------+
| | | | |
|Operating profit excluding one-time items| 40.6| 36.5| 11.3%|
+-----------------------------------------+---------+---------+---------+
|% of revenues | 10.1%| 9.4%| |
+-----------------------------------------+---------+---------+---------+
|Operating profit | 40.6| 38.0| 6.9%|
+-----------------------------------------+---------+---------+---------+
|% of revenues | 10.1%| 9.8 %| |
+-----------------------------------------+---------+---------+---------+
|Profit before taxes | 39.7| 37.1| 6.8%|
+-----------------------------------------+---------+---------+---------+
| | | | |
|Net cash flow from operating activities | 46.7| 52.3| -10.7%|
+-----------------------------------------+---------+---------+---------+
|Earnings per share, EUR | 1.84| 1.72| 7.2%|
+-----------------------------------------+---------+---------+---------+
|Return on equity, % | 25.4%| 26.1%| |
+-----------------------------------------+---------+---------+---------+
| | | | |
|Interest-bearing net liabilities | -17.2| -10.3| 66.8%|
+-----------------------------------------+---------+---------+---------+
|Gearing, % | -14.7%| -9.5%| |
+-----------------------------------------+---------+---------+---------+
|Gross capital expenditure | 19.7| 14.0| 41.2%|
+-----------------------------------------+---------+---------+---------+
*Figures adjusted in accordance with IAS 19. More details of changes in IFRS
standards are given in the final section of this interim report.
Business environment and business development
In 2013, Vacon increased its revenues and improved its profitability in the
challenging state of the market. In the company's assessment, the growth in the
AC drive market remained slow in 2013.
Orders declined in October-December 2013 from the period for comparison. In the
Europe, Middle East and Africa (EMEA) region, orders increased apart from the
products for the generation of renewable energy, where the volume of orders
fell. As a whole, orders in the EMEA region were on a lower level than during
the period for comparison. The decline in orders in the Asia Pacific (APAC)
region was due to seasonal fluctuation in orders from a few clients. The decline
in orders in the North and South America region was spread among several
industrial segments.
Vacon's order intake was in 2013 nearly on the same level as in the previous
year. Orders in the EMEA and APAC regions increased a little in 2013. Orders in
North and South America declined in January-December 2013.
Vacon's revenues declined in October-December 2013. Factors in this decline were
the postponement of certain customer deliveries to 2014 and the fall in sales of
products for the generation of renewable energy in the EMEA region. Regionally,
revenues increased in October-December in the APAC region, but fell in the EMEA
and North and South America regions.
In January-December 2013 Vacon's revenues increased from the period for
comparison. Revenues increased e.g. for products for building automation and
renewable energy production. In 2013 revenues rose in the EMEA and APAC regions,
but fell in North and South America. Vacon has taken additional measures to put
orders and revenues in North and South America on a growth track in 2014.
In 2013, the company's profitability clearly improved from the period for
comparison, but the profitability of the year's final quarter was weaker than
during the period for comparison due to the decline in revenues. A particular
factor in the improvement in the profitability in 2013 was the cost benefits
obtained from transferring material sourcing to lower-cost countries.
Vacon has decided to expand its product offering into the market for medium
voltage AC drives. In contrast to Vacon's current low voltage AC drives, medium
voltage AC drives typically operate on voltages of several kilovolts and at
power levels of several megawatts. The global market for medium voltage AC
drives is growing, and is currently estimated at USD 2.8 billion (IHS). The
first pilot deliveries of Vacon's medium voltage AC drives are scheduled to take
place in 2014.
In October 2013 Vacon launched the new VACON® NXP Grid Converter AC drive, which
represents the next step in energy optimization, ensuring that e.g. ship and
port owners can improve energy efficiency and productivity.
Dividend proposal
The parent company's profit for the 2013 financial year was EUR 23.7 million and
the distributable equity of the parent company at the end of the financial year
was at EUR 76.6 million. The Board of Directors proposes to the Annual General
Meeting of Shareholders, to be held on 27 March 2014, that a dividend of EUR
1.30 per share be paid from the parent company's profit for the 2013 financial
year and the remainder of the profit for the financial year be transferred to
retained earnings. Under this proposal, a total of EUR 19.8 million would be
paid in dividend.
The dividend will be paid to shareholders who are registered on 1 April 2014,
the record date for the dividend payment, in the list of shareholders maintained
by Euroclear Finland Oy. The dividend payment date is 8 April 2014.
Prospects for 2014
Market research institute IHS estimates that the AC drive market will grow at an
average rate of 7% in the period 2012-2017. Global megatrends, such as
urbanisation, growth in industrial automation, energy efficiency, developing
markets and renewable energy boost growth in the AC drive market. Growth in the
AC drive market varies from year to year, even from one quarter to another, but
as a general estimate, the AC drive market is growing faster than global average
growth in gross national product.
Overall market developments are exposed to various uncertainties in 2014. Vacon
estimates that the AC drive market will increase some 5-10 % in 2014, depending
on overall market developments. The company has expanded and renewed its product
offering in the past few years, which places the company in a strong position to
grow faster than the AC drive market in 2014.
Vacon's goal is to improve its profitability in 2014. Key factors in this will
be the cost benefits from transferring material sourcing to lower cost
countries, and raising overall efficiency in its operations.
Market guidelines for 2014
Vacon estimates that its revenues will increase 5 - 15% and its operating profit
percentage excluding one-time items will be 11 - 13% in 2014.
Revenues in 2013 totalled EUR 403.0 million and the operating profit percentage
excluding one-time items was 10.1%.
Vacon's financial targets for the years 2014-2020
Growth: The target is to achieve an average annual revenue growth of over 10%.
The growth target is based on growing the business organically in a market
environment where the AC drives market grows clearly faster than the average
Gross Domestic Product (GDP). Selective acquisitions can be used to further
accelerate the growth.
Profitability: The long-term profitability target is to achieve a sustainable
EBIT margin level of 14%. Vacon focuses on growth and on measures that improve
the company's efficiency in the long term and thus deliver a higher absolute
EBIT and shareholder value.
Financial reports in 2014
Vacon is publishing three interim reports in 2014 as follows:
* January-March: Wednesday, 23 April at 9.30 am
* January-June: Wednesday, 30 July at 9.30 am
* January-September: Wednesday, 22 October at 9.30 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 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 30 countries. Further,
Vacon has sales representatives and service partners in nearly 90 countries. In
2013, Vacon's revenues amounted to EUR 403.0 million, and the company employed
globally approximately 1,600 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
Vaasa, 6 February 2014
VACON PLC
Board of Directors
For more information please contact:
* Vesa Laisi, President and CEO, Vacon Plc, phone +358 (0)40 8371 510,
vesa.laisi(at)vacon.com
* Sebastian Linko, Director, Corporate Communications and Investor Relations,
Vacon Plc, phone +358 (0)40 8371 634, sebastian.linko(at)vacon.com
Conference for media and analysts
A briefing for the financial analysts and media will be held on 6 February 2014
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 6 February 2014. President and CEO Vesa Laisi, CFO Pia Aaltonen-
Forsell and Director, Corporate Communications and Investor Relations Sebastian
Linko will participate in the conference. Please call +358(0)9 2310 1619
(Finland Toll) or +44 (0)20 3427 0502 (UK Toll) and request to be connected to
the Vacon call (Confirmation code 3157833). 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 3157833#.
* Webcast URL: http://www.media-server.com/m/p/xpwtwipw
The presentation material will be available before the start of the briefing at
the Vacon's website www.vacon.com > Investors > Publications and releases.
Distribution:
NASDAQ OMX Helsinki
Financial Supervisory Authority
Main media
[HUG#1759680]
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