2017-04-25 13:00:35 CEST
2017-04-25 13:00:35 CEST
REGULATED INFORMATION
Vaisala - Interim report (Q1 and Q3)
Vaisala Corporation Interim Report January-March 2017
Vaisala Corporation Interim Report
April 25, 2017 at 2.00 p.m. (EEST)
Vaisala Corporation Interim Report January-March 2017
Orders received were strong and operating profit improved despite flat net sales
January-March 2017 highlights
* Orders received EUR 81.5 (64.8) million, increase 26%
* Order book EUR 130.3 (121.9) million, increase 7%
* Net sales EUR 68.4 (68.7) million, flat
* Gross margin 51.4% (51.0%)
* Operating result EUR 2.6 (-1.0) million. Comparison period included EUR
3.1. million restructuring expenses.
* Earnings per share EUR 0.09 (-0.12)
* Cash flow from operating activities EUR 2.9 (-0.6) million
* Cash and cash equivalents EUR 72.9 (57.0) million, increase 28%
* Business outlook for 2017 unchanged: Vaisala estimates its full-year 2017
net sales to be in the range of EUR 310-340 million and its operating result
(EBIT) to be in the range of EUR 32-42 million.
Vaisala's President and CEO Kjell Forsén comments on the first quarter 2017
"Vaisala's first quarter 2017 orders received was strong with 26% increase from
previous year and totaled EUR 81.5 million, which is all time high start for a
year. Weather Business Area's orders received were brisk at EUR 52.0 million
with 27% increase from previous year. Controlled Environment Business Area's
orders received growth continued and was 23% resulting in EUR 29.5 million.
Followed by good order intake in both business areas, Vaisala's order book
strengthened by 7%. Half of the growth in Controlled Environment Business Area's
order book came from service business and multi-year calibration contracts. This
reflects emerging business model change to offer service contracts together with
instrument orders.
Net sales were EUR 68.4 million, flat compared to previous year. However, this
was a good achievement considering low order book in the beginning of the year.
Controlled Environment Business Area's net sales were very strong at EUR 28.1
million with 17% increase from previous year. The increase came from all regions
and was strongest in Americas and APAC. Weather Business Area's net sales
decreased by 10% due to low opening order book in the beginning of the year.
Vaisala's first quarter operating result increased to EUR 2.6 million even
though net sales were flat. The main driver for operating result increase was
higher net sales in Controlled Environment Business Area.
Global economic growth improved in the first quarter 2017, and latest forecasts
refer to a moderate outlook. Increase in commodity prices, especially in crude
oil, is expected to improve outlook of several emerging economies. During the
first quarter, performance of global manufacturing industry also improved,
reflecting positively especially on Controlled Environment Business Area's
outlook. Weather observation market outlook for 2017 is slightly more favorable
than in 2016 and industrial measurement market outlook continues to be
favorable. We continue to estimate our full-year net sales to be in the range of
EUR 310-340 million and the operating profit (EBIT) in the range of EUR 32-42
million."
Key Figures
1-3/2017 1-3/2016 1-12/2016
-----------------------------------------------------------------------------
Orders received, EUR million 81.5 64.8 311.3
Order book, EUR million 130.3 121.9 118.0
Net sales, EUR million 68.4 68.7 319.1
Gross profit, EUR million 35.1 35.0 164.8
Gross margin, % 51.4 51.0 51.6
Operating expenses, EUR million 32.8 33.1 141.5
Operating result, EUR million 2.6 -1.0 22.3
Operating result, % 3.7 -1.5 7.0
Profit (loss) before taxes, EUR million 2.0 -2.7 22.1
Profit (loss) for the period, EUR million 1.6 -2.1 18.8
Earnings per share, EUR 0.09 -0.12 1.05
Return on equity, % 3.7 -4.7 10.5
Capital expenditure, EUR million 1.8 1.1 7.7
Depreciation, EUR million 2.9 3.7 24.1
Cash flow from operating activities, EUR million 2.9 -0.6 41.8
Cash and cash equivalents, EUR million 72.9 57.0 72.4
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Market situation in January-March 2017
During the first quarter 2017, orders received improved significantly compared
to previous year as Latin America, Europe and China had strong growth in order
intake. Vaisala closed several larger contracts in particular with meteorology
customers globally. Orders received also increased clearly among the
transportation customers with the exception of airports customers that was
stable compared to previous year. Overall order intake for information services
across customer segments increased clearly. However, order activity with
renewable energy customers remained stable compared to previous year.
Vaisala's industrial measurement solution orders received continued to increase
compared to previous year followed by good demand among continuous monitoring
systems and OEM customers. This was a result of favorable market conditions, and
Vaisala also grew faster than the addressable market. The growth was strongest
in Americas and APAC.
January-March 2017 performance
Orders received
EUR million 1-3/2017 1-3/2016 Change, % 2016
---------------------------------------------------------
Weather 52.0 40.9 27 206.0
Controlled Environment 29.5 23.9 23 105.3
---------------------------------------------------------
Total 81.5 64.8 26 311.3
---------------------------------------------------------
In the first quarter 2017, Vaisala's orders received were EUR 81.5 (64.8)
million. Orders received increased by 26% compared to previous year. The
increase came from all geographical areas.
In the first quarter 2017, Weather Business Area's orders received were EUR
52.0 (40.9) million and increased by 27% compared to previous year. The increase
came from Americas, Europe and China.
In the first quarter 2017, Controlled Environment Business Area's orders
received were EUR 29.5 (23.9) million and increased by 23% compared to previous
year. The increase came from all regions and was strongest in Americas and APAC.
Order book
EUR million Mar 31, 2017 Mar 31, 2016 Change, % Dec 31, 2016
------------------------------------------------------------------------
Weather 120.4 115.2 5 109.4
Controlled Environment 10.0 6.8 47 8.6
------------------------------------------------------------------------
Total 130.3 121.9 7 118.0
------------------------------------------------------------------------
At the end of March 2017, Vaisala's order book was EUR 130.3 (121.9) million and
increased by 7% compared to previous year. The order book increased in EMEA and
Americas. Of the order book EUR 89.3 (83.6) million is scheduled to be delivered
in 2017.
At the end of March 2017, Weather Business Area's order book was EUR 120.4
(115.2) million and increased by 5% compared to previous year. Order book
increased in Americas, Europe and China. Of the order book EUR 80.6 (77.1)
million is scheduled to be delivered in 2017.
At the end of March 2017, Controlled Environment Business Area's order book was
EUR 10.0 (6.8) million and increased by 47% compared to previous year. The
increase came from all regions and was strongest in APAC. Half of the increase
in order book came from service business and calibration contracts for multiple
years. Of the order book EUR 8.6 (6.4) million is scheduled to be delivered in
2017.
Net sales by business area
EUR million 1-3/2017 1-3/2016 Change, % 2016
----------------------------------------------------------
Weather 40.3 44.7 -10 215.4
Products 23.0 25.8 -11 115.5
Projects 8.5 9.9 -14 65.0
Services 8.7 8.9 -2 34.9
Controlled Environment 28.1 24.0 17 103.7
Products 25.2 21.3 19 93.0
Services 2.9 2.7 6 10.7
----------------------------------------------------------
Total 68.4 68.7 0 319.1
----------------------------------------------------------
Net sales by geographical area
EUR million 1-3/2017 1-3/2016 Change, % 2016
----------------------------------------------------------
EMEA 18.1 21.6 -16 92.0
Americas 28.7 29.5 -3 140.9
APAC 21.6 17.6 23 86.2
----------------------------------------------------------
Total 68.4 68.7 0 319.1
----------------------------------------------------------
In the first quarter 2017, Vaisala's net sales were flat compared to previous
year and totaled EUR 68.4 (68.7). Net sales in EMEA were EUR 18.1 (21.6) million
and decreased by 16%, in the Americas EUR 28.7 (29.5) million and decreased by
3%. In APAC, net sales increased by 23% and totaled EUR 21.6 (17.6) million. At
comparable exchange rates, the net sales would have been EUR 67.7 (68.7) million
and decrease would have been EUR 1.0 million or 1% from previous year. The
positive exchange rate effect was EUR 0.6 million, which was mainly caused by
USD exchange rate appreciation against EUR.
In the first quarter 2017, Weather Business Area's net sales were EUR 40.3
(44.7) million and decreased by 10% compared to previous year. Deliveries were
affected by normal seasonal weakness of the first quarter and low opening order
book in the beginning of the year. The decrease came from Americas, Europe and
APAC & MEA. At comparable exchange rates, the net sales would have been EUR
40.0 (44.7) million and decrease would have been EUR 4.7 million or 11% from
previous year. The positive exchange rate effect was EUR 0.3 million, which was
mainly caused by USD appreciation against EUR.
In the first quarter 2017, Controlled Environment Business Area's net sales were
EUR 28.1 (24.0) million and increased by 17% compared to previous year. The
increase came from all regions and was strongest in Americas and APAC. At
comparable exchange rates, the net sales would have been EUR 27.7 (24.0) million
and increase would have been EUR 3.7 million or 16% from previous year. The
positive exchange rate effect was EUR 0.4 million, which was mainly caused by
USD and JPY appreciation against EUR.
Gross margin and operating result
1-3/2017 1-3/2016 2016
-----------------------------------------------------
Gross margin, % 51.4 51.0 51.6
Weather 43.8 45.8 47.3
Controlled Environment 62.6 60.8 60.8
Operating result, EUR million 2.6 -1.0 22.3
Weather -4.0 -1.9 3.4
Controlled Environment 6.4 4.9 21.6
Other 0.2 -4.1 -2.7
-----------------------------------------------------
In the first quarter 2017, Vaisala's operating result was EUR 2.6 (-1.0) million
and increased by EUR 3.6 million compared to previous year. Previous year's
operating result included EUR 3.1 million expenses related to the restructuring
of Transportation business unit in Weather Business Area. Increased net sales
and gross margin in Controlled Environment Business Area improved operating
result. Gross margin was 51.4% (51.0%). Operating expenses were EUR 32.8 (33.1)
million and decreased by 1%.
In the first quarter 2017, Weather Business Area's operating result was EUR -4.0
(-1.9) million and decreased by EUR 2.1 million compared to previous year.
Operating result decreased mainly due to lower net sales. Gross margin was
43.8% (45.8%). Gross margin decrease was mainly due to lower sales volumes and
related weakening in scale economies. Operating expenses were EUR 21.7 (22.4)
million and decreased by 3%. The decrease came mainly from lower sales expenses.
In the first quarter 2017, Controlled Environment Business Area's operating
result was EUR 6.4 (4.9) million and increased by EUR 1.4 million compared to
previous year. Gross margin was 62.6% (60.8%). Gross margin increase was mainly
due to higher sales volumes and related improvement in scale economies.
Operating expenses were EUR 11.2 (9.6) million and increased by 16%. The
increase came mainly from sales expenses according to plan.
In the first quarter 2017, financial income and expenses were EUR -0.5 (-1.7)
million. This was a result of valuation of USD denominated receivables.
In the first quarter 2017, profit/loss before taxes was EUR 2.0 (-2.7) million.
Income taxes were EUR -0.4 (0.6) million. Net result was EUR 1.6 (-2.1) million.
In the first quarter 2017, earnings per share were EUR 0.09 (-0.12).
Statement of financial position and cash flow
Vaisala's financial position remained strong at the end of March 2017. Cash and
cash equivalents increased to EUR 72.9 (57.0) million. Vaisala did not have any
material interest bearing liabilities.
Despite increased cash balance, the statement of financial position total
decreased to EUR 253.0 (259.7) million. The decrease was due to EUR 10.5 million
write-down of intangible assets, booked in the third quarter of 2016, and
related decrease in deferred tax liabilities as well as decreased inventories
and receivables. On the other hand, current liabilities were higher at the end
of the quarter compared to previous year. This was mainly due to 2017 dividend
being recognized as liability after the Annual General Meeting.
In the first quarter 2017, Vaisala's cash flow from operating activities
increased to EUR 2.9 (-0.6) million mainly as a result of increased EBITDA
(earnings before interest, taxes, depreciation and amortization).
During the first quarter, Vaisala repurchased 23,173 Company's series A shares
with EUR 0.8 million.
Capital expenditure and divestments
In January-March 2017, gross capital expenditure totaled EUR 1.8 (1.1) million.
Capital expenditure was mainly related to investments in machinery and equipment
to develop and maintain Vaisala's production and service operations.
Depreciation, amortization and write-downs were EUR 2.9 (3.7) million. The
decrease in depreciation was mainly due to EUR 10.5 million write-down of
intangible assets, booked in the third quarter of 2016.
Research and development
R&D by business area
EUR million 1-3/2017 1-3/2016 Change, % 2016
--------------------------------------------------------
Weather 7.0 6.7 4 26.5
Controlled Environment 3.1 2.8 10 11.5
--------------------------------------------------------
Total 10.1 9.5 6 38.0
--------------------------------------------------------
Controlled Environment Business Area's R&D activity continued increasing
according to plan.
R&D expenditure % of net sales
1-3/2017 1-3/2016 2016
----------------------------------------------
Weather 17.4 15.1 12.3
Controlled Environment 10.9 11.6 11.1
----------------------------------------------
Total 14.7 13.9 11.9
----------------------------------------------
Weather Business Area's R&D expenditure % of net sales increased by 2.3
percentage points mainly due to lower net sales.
Personnel
The average number of personnel employed in Vaisala during January-March 2017
was 1,562 (1,582). At the end of March, the number of employees was 1,558
(1,579). 69% (66%) of employees were located EMEA, 22% (25%) in the Americas and
9% (8%) in APAC. 62% (59%) of employees were based in Finland.
Management Group
In February, Katriina Vainio was appointed as member of Vaisala Management Group
starting from March 1, 2017. As Executive Vice President, Group General Counsel
of Vaisala she reports to Kjell Forsén, President and CEO of Vaisala.
From March 1, 2017 onwards Vaisala's Management Group members are
* Kjell Forsén, President and CEO, Chairman of the Management Group
* Marja Happonen, Executive Vice President, Human Resources
* Sampsa Lahtinen, Executive Vice President, Controlled Environment Business
Area
* Kaarina Muurinen, Chief Financial Officer
* Vesa Pylvänäinen, Executive Vice President, Operations
* Jarkko Sairanen, Executive Vice President, Weather Business Area
* Katriina Vainio, Executive Vice President, Group General Counsel
Decisions by Vaisala Corporation's Annual General Meeting
Vaisala Corporation's Annual General Meeting was held on March 28, 2017. The
meeting approved the financial statements and discharged the members of the
Board of Directors and the President and CEO from liability for the financial
period January 1-December 31, 2016.
Dividend
The Annual General Meeting decided a dividend of EUR 1.00 per share,
corresponding to the total of EUR 17.9 million. The record date for the dividend
payment was March 30, 2017 and the payment date was April 6, 2017.
Board of Directors
The Annual General Meeting confirmed that the number of Board members is eight.
Petra Lundström, Yrjö Neuvo, Mikko Niinivaara, Kaarina Ståhlberg, Pertti
Torstila, Raimo Voipio and Ville Voipio will continue as members of the Board of
Directors. Petri Castrén was elected as a new member of the Board of Directors.
The Annual General Meeting confirmed that the annual fee payable to the Chairman
of the Board of Directors is EUR 45,000 and each Board member EUR 35,000 per
year. Approximately 40 percent of the annual remuneration will be paid in
Vaisala Corporation's A shares acquired from the market and the rest in cash. In
addition, the Annual General Meeting confirmed that the compensation for the
Chairman of the Audit Committee would be EUR 1,500 per attended meeting and EUR
1,000 for each member of the Audit Committee and Chairman and each member of the
Remuneration and HR Committee and any other committee established by the Board
of Directors for a term until the close of the Annual General Meeting in 2018.
The meeting compensation fees are paid in cash.
Auditor
The Annual General Meeting re-elected Deloitte & Touche Oy as the auditor of the
Company and APA Merja Itäniemi will act as the auditor with the principal
responsibility. The Auditors are reimbursed according to invoice presented to
the Company.
Authorization for the directed repurchase of own A shares
The Annual General Meeting authorized the Board of Directors to decide on the
directed repurchase of a maximum of 200,000 of the Company's own A shares in one
or more instalments with funds belonging to the Company's unrestricted equity.
This authorization is valid until the closing of the next Annual General
Meeting, however, no longer than September 28, 2018, and it replaced the
previous authorization for directed repurchase of own A shares.
Authorization on the issuance of the Company's own A shares
The Annual General Meeting authorized the Board of Directors to decide on the
issuance of a maximum of 568,344 Company's own A shares. The issuance of own
shares may be carried out in deviation from the shareholders' pre-emptive rights
(directed issue). The subscription price of the shares can instead of cash also
be paid in full or in part as contribution in kind. This authorization is valid
until March 28, 2022, and it replaced the previous authorization for issuance of
own A shares.
Resolution on the forfeiture of shares entered in the Vaisala Corporation joint
book-entry account and of the rights attached to such shares
The Annual General Meeting decided in accordance with the proposal by the Board
of Directors that, regarding the shares entered in the Vaisala joint book-entry
account, the right to shares incorporated in the book-entry system and the
rights such shares carry are forfeited, and authorized the Board of Directors to
take all actions required by said decision.
The forfeiture of shareholder rights concerns shares that are in the joint book-
entry account, i.e. 4,820 shares of which 4,800 are series A-shares and 20
series K-shares. The shares, whose registration of shareholder rights to the
shareholder's book-entry account were requested prior to the commencement of the
Annual General Meeting, and which will entered in the shareholder's book-entry
account by June 30, 2017, will not be subject to the forfeiture of rights
referred to above.
The organizing meeting of the Board of Directors
At its organizing meeting held after the Annual General Meeting, the Board
elected Raimo Voipio to continue as the Chairman of the Board of Directors and
Yrjö Neuvo to continue as the Vice Chairman.
The composition of the Board committees was decided to be as follows:
Kaarina Ståhlberg was elected as the Chairman and Petri Castrén and Mikko
Niinivaara as members of the Audit Committee. The Chairman and all members of
the Audit Committee are independent both of the Company and of significant
shareholders.
Raimo Voipio was elected as the Chairman and Yrjö Neuvo, Mikko Niinivaara and
Pertti Torstila as members of the Remuneration and HR Committee. The Chairman
and all members of the Remuneration and HR Committee are independent both of the
Company and of significant shareholders.
Vaisala's shares and shareholders
Vaisala's share capital totaled EUR 7,660,808 on March 31, 2017. Vaisala had
18,218,364 shares, of which 3,389,351 were series K shares and 14,829,013 were
series A shares. The series K shares and series A shares are differentiated by
the fact that each series K share entitles its owner to 20 votes at a General
Meeting of Shareholders while each series A share entitles its owner to 1 vote.
The series A shares represent 81.4% of the total number of shares and 17.9% of
the total votes. The series K shares represent 18.6% of the total number of
shares and 82.1% of the total votes.
Trading in shares on the Nasdaq Helsinki Ltd
In January-March 2017, a total of 498,573 (545,854) Vaisala series A shares with
a value totaling EUR 16.9 (13.0) million were traded on the Nasdaq Helsinki Ltd.
The closing price of the series A share on the Nasdaq Helsinki Ltd stock
exchange was EUR 35.02 (24.06). Shares registered a high of EUR 36.40 (25.00)
and a low of EUR 31.88 (21.81). The volume-weighted average share price was EUR
33.98 (23.74).
The market value of Vaisala's series A shares on March 31, 2017 was EUR 506.4
(352.2) million, excluding the Company's treasury shares. Valuing the series K
shares - which are not traded on the stock market - at the rate of the series A
share's closing price on the last trading day of March, the total market value
of all the series A and series K shares together was EUR 625.1 (433.7) million,
excluding the Company's treasury shares.
At the end of March, 2017 Vaisala Corporation had 7,794 (7,538) registered
shareholders. Ownership outside of Finland and nominee registrations represented
15.6% (14.8%) of the company's shares. Households owned 40.7% (41.1%), private
companies 14.3% (14.0%), financial and insurance institutions 12.8% (12.1%),
non-profit organizations 11.3% (11.9%) and public sector organizations owned
5.3% (6.1%).
Treasury shares and their authorizations
The Annual General Meeting held on April 5, 2016 authorized the Board of
Directors to decide on the directed repurchase of a maximum of 200,000 of the
Company's series A shares. This authorization was valid until the closing of the
Annual General Meeting held on March 28, 2017.
In April 2016, the Board of Directors resolved to commence repurchases of shares
under this authorization. During May 2-December 30, 2016 Vaisala acquired a
total of 176,827 Company's series A shares at an average price of EUR 29.96 and
the total cost of the acquired shares was EUR 5,297,463.80. During January 2-
February 24, 2017 Vaisala acquired a total of 23,173 Company's series A shares
at an average price of EUR 34.03 and the total cost of the acquired share was
EUR 788,522.13.
The Annual General Meeting held on April 5, 2016, authorized the Board of
Directors to decide on the issuance of a maximum of 391,550 Company's series A
shares. This authorization was valid until the closing of the Annual General
Meeting held on March 28, 2017.
In March 2017, the Board of Directors decided to transfer shares under this
authorization. A total of 22,506 Company's series A shares were transferred to
the 22 key employees participating on the Share-based incentive plan 2014 and
Restricted share-based incentive plan 2016 under the terms and conditions of the
plans.
At the end of March 2017, Vaisala held a total of 367,544 (191,550) Company's
series A shares, which represented 2.5% (1.3%) of all series A shares and 2.0%
(1.1%) of all shares.
More information about Vaisala's shares and shareholders are presented on the
website, www.vaisala.com/investors.
Near-term risks and uncertainties
Uncertainties in political situation and governmental customers' budgetary
constraints may reduce demand for Vaisala's products and services or slow down
customer projects.
Delay in developing applications for information services as well as acquiring
and building competences for information services sales and business operations
may slow down growth in Weather Business Area. Closing of infrastructure
projects in Weather Business Area may be postponed by budgetary constraints,
complex customer decision making processes, changes in scope, and financing.
Thus, Vaisala's financial performance may vary significantly over time.
Prolonged new product ramp-ups and market acceptance of new offering, such as
power transformer monitoring products, supplementary air quality network
sensors, and continuous monitoring systems, may postpone the realization of
Vaisala's growth plans. Weakness in introducing new technologies and
applications may result in erosion of price premium or loss of cost
competitiveness and market position.
Long interruption in production or test equipment or disruption in suppliers'
and subcontractors' delivery capability or product quality may impact
significantly Vaisala's net sales and profitability. Cyber risk and downtime of
IT systems may impact operations, delivery of information services or internet-
based services, or cause financial loss.
Vaisala's capability to successfully complete investments, acquisitions,
divestments and restructurings on a timely basis and to achieve related
financial and operational targets represent a risk, which may impact net sales
and profitability.
Further information about risk management and risks are available on the company
website at www.vaisala.com/investors, Corporate Governance and
www.vaisala.com/investors, Vaisala as an Investment.
Market outlook 2017
Global economic growth improved in the first quarter 2017, and latest forecasts
refer to a moderate outlook. Increase in commodity prices, especially in crude
oil, is expected to improve outlook of several emerging economies. During the
first quarter, also performance of global manufacturing industry improved,
reflecting positively especially on Controlled Environment Business Area's
outlook.
Weather observation market outlook for 2017 is slightly more favorable than in
2016. Improvements in weather observation and forecasting capabilities continue
to be important for customers although budgetary constraints restrict customers'
investments in many countries. Global demand and order activity for weather
observation solutions is expected to increase in 2017 especially among
meteorology customers. Market development with transportation customer
industries look overall stable whereas new order intake is expected to be
slightly lower than in the strong 2016 due to variations with large projects and
weak short-term visibility into Chinese aviation market development. Demand for
renewable energy solutions is expected to grow modestly.
Industrial measurement market outlook for 2017 continues to be favorable.
Especially, OEM business and continuous monitoring systems drive demand growth
for industrial measurement solutions.
Business outlook for 2017
Vaisala continues t0 estimate its full-year 2017 net sales to be in the range of
EUR 310-340 million and its operating result (EBIT) to be in the range of EUR
32-42 million.
Financial Calendar 2017
Half Year Financial Report for January-June 2017, July 20, 2017
Interim Report for January-September 2017, October 23, 2017
Vantaa, April 25, 2017
Vaisala Corporation
Board of Directors
The forward-looking statements in this release are based on the 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.
Financial information and changes in accounting policies
This interim financial report has been prepared in accordance with IAS 34,
Interim Financial Reporting, following the same accounting policies and
principles as in the annual financial statements for 2016. All figures in the
interim report are Group figures. All presented figures have been rounded and
consequently the sum of individual figures may deviate from the sum presented.
The preparation of the financial statements in accordance with IFRS requires
Vaisala's management to make estimates and assumptions that affect the valuation
of the reported assets and liabilities and the recognition of income and
expenses in the statement of income. Although the estimates are based on the
management's best knowledge at the date of the interim report, actual results
may differ from the estimates. This interim financial report is unaudited.
New and amended IFRS standards not yet adopted
IFRS 15 Revenue from Contracts with Customers (effective for financial periods
beginning on or after January 1, 2018) will supersede the current revenue
recognition guidance including IAS 18 Revenue and IAS 11 Construction Contracts.
By now, Vaisala has reviewed material portion of customer contracts in order to
verify the applicability of selected methods. Also, development of processes and
solutions in ERP system in order to comply with IFRS 15 requirements has
progressed according to plan. Vaisala will disclose further information
concerning adoption of IFRS 15 in Half Year Financial Report 2017 and Interim
Report for January-September 2017.
Consolidated Statement of Income
EUR million 1-3/2017 1-3/2016 1-12/2016
------------------------------------------------------------------------
Net sales 68.4 68.7 319.1
Cost of sales -33.2 -33.7 -154.3
------------------------------------------------------------------------
Gross profit 35.1 35.0 164.8
Sales, marketing and administrative costs -22.8 -23.5 -103.4
Research and development costs -10.1 -9.5 -38.0
Other operating income and expense 0.3 -3.0 -1.0
------------------------------------------------------------------------
Operating profit (loss) 2.6 -1.0 22.3
Share of result in associated company - - 0.1
Financial income and expenses, net -0.5 -1.7 -0.3
------------------------------------------------------------------------
Profit (loss) before taxes 2.0 -2.7 22.1
Income taxes -0.4 0.6 -3.3
------------------------------------------------------------------------
Profit (loss) for the period 1.6 -2.1 18.8
Earnings per share, EUR 0.09 -0.12 1.05
Diluted earnings per share, EUR 0.09 -0.12 1.03
Consolidated Statement of Comprehensive Income
EUR million 1-3/2017 1-3/2016 1-12/2016
-------------------------------------------------------------------------------
Items that will not be reclassified to profit or
loss
Actuarial profit (loss) on post-
employment benefits 0.0 0.0 -0.0
-------------------------------------------------------------------------------
Total 0.0 0.0 -0.0
-------------------------------------------------------------------------------
Items that may be reclassified subsequently to
profit or loss
Currency translation differences -0.2 -1.3 0.0
-------------------------------------------------------------------------------
Total -0.2 -1.3 0.0
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Total other comprehensive income -0.2 -1.3 0.0
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Total comprehensive income 1.4 -3.4 18.8
-------------------------------------------------------------------------------
Consolidated Statement of Financial Position
EUR million
----------------------------------------------------------------------------
Assets Mar 31, 2017 Mar 31, 2016 Dec 31, 2016
----------------------------------------------------------------------------
Non-current assets
Intangible assets 19.0 31.4 20.0
Property, plant and equipment 40.9 42.5 41.4
Investments 0.1 0.1 0.1
Investment in associated companies 0.8 0.8 0.8
Long-term receivables 0.7 0.8 0.7
Deferred tax assets 10.9 11.1 10.8
----------------------------------------------------------------------------
Total non-current assets 72.4 86.6 73.8
Current assets
Inventories 35.5 40.5 32.1
Trade and other receivables 69.2 73.3 75.4
Income tax receivables 2.9 2.3 1.4
Cash and cash equivalents 72.9 57.0 72.4
----------------------------------------------------------------------------
Total current assets 180.5 173.1 181.2
----------------------------------------------------------------------------
Total assets 253.0 259.7 255.0
----------------------------------------------------------------------------
Shareholders' equity and liabilities Mar 31, 2017 Mar 31, 2016 Dec 31, 2016
-------------------------------------------------------------------------------
Shareholders' equity
Share capital 7.7 7.7 7.7
Other reserves 1.8 1.2 2.0
Cumulative translation adjustment 2.7 1.6 2.9
Treasury shares -10.1 -4.3 -9.6
Retained earnings 159.4 171.8 175.6
-------------------------------------------------------------------------------
Total shareholders' equity 161.5 178.0 178.5
Non-current liabilities
Interest-bearing liabilities 0.0 0.0 0.0
Post-employment benefit obligations 2.5 2.1 2.4
Deferred tax liabilities 0.0 4.0 0.0
Provisions for other liabilities and
charges 0.0 0.2 0.0
Other long-term liabilities 1.4 0.7 1.3
-------------------------------------------------------------------------------
Total non-current liabilities 3.9 7.1 3.7
Current liabilities
Interest-bearing liabilities 0.0 0.0 0.0
Advances received 3.1 4.8 4.0
Income tax liabilities 0.6 1.2 0.4
Provisions for other liabilities and
charges 1.1 3.8 1.8
Trade and other payables 82.8 64.8 66.6
-------------------------------------------------------------------------------
Total current liabilities 87.6 74.6 72.8
-------------------------------------------------------------------------------
Total shareholders' equity and
liabilities 253.0 259.7 255.0
-------------------------------------------------------------------------------
Consolidated Statement of Changes in Shareholders' Equity
Share Other Treasury Translation Retained
EUR million capital reserves shares adjustment earnings Total
-------------------------------------------------------------------------------
Balance at Jan
1, 2016 7.7 1.1 -4.3 2.9 173.9 181.3
Profit (loss)
for the period -2.1 -2.1
Other
comprehensive
income 0.0 -1.3 -1.3
Share-based
payment 0.1 0.1
-------------------------------------------------------------------------------
Balance at Mar
31, 2016 7.7 1.2 -4.3 1.6 171.8 178.0
-------------------------------------------------------------------------------
Share Other Treasury Translation Retained
EUR million capital reserves shares adjustment earnings Total
-------------------------------------------------------------------------------
Balance at Jan
1, 2017 7.7 2.0 -9.6 2.9 175.6 178.5
Profit (loss)
for the period 1.6 1.6
Other
comprehensive
income 0.0 -0.2 -0.2
Dividend paid -17.8 -17.8
Return of
unpaid
dividends to
shareholders'
equity -0.1 -0.1
Purchase of
treasury shares -0.8 -0.8
Share-based
payment -0.1 0.3 0.2
-------------------------------------------------------------------------------
Balance at Mar
31, 2017 7.7 1.8 -10.1 2.7 159.4 161.5
-------------------------------------------------------------------------------
Consolidated Cash Flow Statement
EUR million 1-3/2017 1-3/2016 1-12/2016
-------------------------------------------------------------------------------
Cash flows from operating activities
Cash receipts from customers 82.4 84.7 320.1
Other income from business operations 0.0 -3.0 0.0
Cash paid to suppliers and employees -76.9 -78.2 -268.3
Financials paid, net -0.7 -1.5 -0.7
Income taxes paid, net -2.0 -2.6 -9.4
-------------------------------------------------------------------------------
Cash flow from operating activities 2.9 -0.6 41.8
Cash flows from investing activities
Capital expenditure on fixed assets -1.8 -1.1 -7.7
Divestments 0.0 0.0 1.4
-------------------------------------------------------------------------------
Cash flow from investing activities -1.8 -1.1 -6.4
Cash flows from financing activities
Dividends paid - - -17.1
Purchase of treasury shares -0.8 - -5.3
Change in loan receivables 0.0 0.0 0.0
Change in leasing liabilities 0.0 0.0 0.0
-------------------------------------------------------------------------------
Cash flow from financing activities -0.8 0.0 -22.4
Cash and cash equivalents at the beginning of
period 72.4 59.2 59.2
Net increase (+) / decrease (-) in cash and cash
equivalents 0.3 -1.6 13.0
Effect from changes in exchange rates 0.2 -0.5 0.2
-------------------------------------------------------------------------------
Cash and cash equivalents at the end of period 72.9 57.0 72.4
Notes for Report
Orders Received by Business Area
EUR million 1-3/2017 1-3/2016 1-12/2016
-------------------------------------------------------
Weather 52.0 40.9 206.0
Controlled Environment 29.5 23.9 105.3
-------------------------------------------------------
Total 81.5 64.8 311.3
-------------------------------------------------------
Net Sales by Business Area
EUR million 1-3/2017 1-3/2016 1-12/2016
-------------------------------------------------------
Weather
Products 23.0 25.8 115.5
Projects 8.5 9.9 65.0
Services 8.7 8.9 34.9
-------------------------------------------------------
Total 40.3 44.7 215.4
Controlled Environment
Products 25.2 21.3 93.0
Services 2.9 2.7 10.7
-------------------------------------------------------
Total 28.1 24.0 103.7
Sales, Other 0.0 0.0 0.0
-------------------------------------------------------
Total Sales 68.4 68.7 319.1
-------------------------------------------------------
Operating Result by Business Area
EUR million 1-3/2017 1-3/2016 1-12/2016
-------------------------------------------------------
Weather -4.0 -1.9 3.4
Controlled Environment 6.4 4.9 21.6
Other 0.2 -4.1 -2.7
-------------------------------------------------------
Total 2.6 -1.0 22.3
-------------------------------------------------------
Net Sales by Geographical Area
EUR million 1-3/2017 1-3/2016 1-12/2016
-------------------------------------------------------
EMEA 18.1 21.6 92.0
Americas 28.7 29.5 140.9
APAC 21.6 17.6 86.2
-------------------------------------------------------
Total 68.4 68.7 319.1
-------------------------------------------------------
Personnel
1-3/2017 1-3/2016 1-12/2016
-------------------------------------------------------------------------------
Average personnel 1,562 1,582 1,590
Personnel at the end of period 1,558 1,579 1,569
-------------------------------------------------------------------------------
Financial Instruments
Mar 31, 2017 Mar 31, 2016 Dec 31, 2016
-------------------------------------------------------------------------------
Nominal value of financial
derivatives, EUR million 47.3 24.7 50.2
Fair values of financial derivatives,
assets, EUR million 0.1 0.7 0.3
Fair values of financial derivatives,
liabilities, EUR million 0.8 0.1 1.5
-------------------------------------------------------------------------------
Financial derivatives consist solely of foreign currency forwards and they are
measured based on price
information derived from active markets and commonly used valuation methods
(Fair value hierarchy 2).
Financial contracts are executed only with counterparties that have high
credit ratings.
Share Information
1-3/2017 1-3/2016 1-12/2016
-------------------------------------------------------------------------------
Number of shares outstanding, thousand 17,851 18,027 17,851
Number of treasury shares, thousand 368 192 367
Number of shares, weighted average, diluted,
thousand 18,044 18,180 18,203
Number of shares, weighted average, thousand 17,843 18,027 17,955
Number of shares traded, thousand 499 546 2,031
Share price, highest, EUR 36.40 25.00 36.96
Share price, lowest, EUR 31.88 21.81 21.81
-------------------------------------------------------------------------------
Key Ratios
1-3/2017 1-3/2016 1-12/2016
-------------------------------------------------------------------------------
Earnings per share, EUR 0.09 -0.12 1.05
Earnings per share, diluted, EUR 0.09 -0.12 1.03
Equity per share, EUR 9.05 9.87 10.00
Return on equity, % 3.7 -4.7 10.5
Cash flow from operating activities per share, EUR 0.16 -0.03 2.34
Solvency ratio, % 64.6 69.8 71.1
-------------------------------------------------------------------------------
Further information
Kaarina Muurinen, CFO
Mobile +358 40 577 5066
Vaisala Corporation
Telephone Conference
An English-language conference call for analysts, investors and media will be
held today, April 25, 2017 at 4:00 p.m. (Finnish time). Numbers for conference
call, during which questions may be presented, are:
Finland: +358 9 8171 0495
UK: +44 20 3194 0552
Sweden: +46 8 5664 2702
US: +1 85 5716 1597
Audiocast
The presentation by Kjell Forsén, President and CEO, can also be followed
through a live audiocast at www.vaisala.com/investors starting at 4:00 p.m. A
recording will be published at the same address by 6:00 p.m.
Capital Markets Day
Vaisala will hold its Capital Markets Day 2017 at Vaisala's head office, Vanha
Nurmijärventie 21, Vantaa on Tuesday, June 13, 2017 from 11:30 a.m. until 4.00
p.m. At the event, Vaisala's top management will provide an update on the
company's business, development projects and near-term business priorities. A
more detailed program of the Capital Markets Day will be available on Vaisala's
website at www.vaisala.com/investors by June 1, 2017.
Distribution
Nasdaq Helsinki
Key media
www.vaisala.com
Vaisala is a global leader in environmental and industrial measurement. Building
on 80 years of experience, Vaisala contributes to a better quality of life by
providing a comprehensive range of innovative observation and measurement
products and services for chosen weather-related and industrial markets.
Headquartered in Finland, Vaisala employs approximately 1,600 professionals
worldwide and is listed on the Nasdaq Helsinki stock exchange.
www.vaisala.com www.twitter.com/VaisalaGroup
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