2016-07-21 13:00:52 CEST
2016-07-21 13:00:52 CEST
BIRTINGARSKYLDAR UPPLÝSNINGAR
Vaisala - Half Year financial report
Vaisala Corporation Half Year Financial Report 2016
Vaisala Corporation
Half Year Financial Report
July 21, 2016 at 2.00 p.m. (EET)
Vaisala Corporation Half Year Financial Report 2016
In the second quarter 2016, net sales decreased by 2% to EUR 75.6 million and
operating result was EUR 3.4 million.
April-June 2016 highlights
* Orders received EUR 77.0 (78.5) million, decrease 2%
* Order book EUR 123.5 (140.4) million, decrease 12%
* Net sales EUR 75.6 (77.0) million, decrease 2%
* Gross margin 49.2% (49.8%)
* Operating result EUR 3.4 (4.1) million
* Earnings per share EUR 0.17 (0.12)
* Cash flow from operating activities EUR 7.7 (-1.0) million
* The agreement to divest Transportation field service and AWOS business in
the U.S. was signed
* Business outlook for 2016: Vaisala continues to estimate its full year 2016
net sales to be in the range of EUR 305-335 million and its operating result
(EBIT) to be in the range of EUR 25-35 million.
First half of 2016 highlights
* Orders received EUR 141.7 (147.4) million, decrease 4%
* Net sales EUR 144.3 (135.6) million, increase 6%
* Gross margin 50.1% (47.6%)
* Operating result EUR 2.4 (-3.6) million
* Earnings per share EUR 0.05 (-0.03)
* Cash flow from operating activities EUR 7.2 (5.3) million, increase 36%
* Cash and cash equivalents EUR 43.2 (33.7) million, increase 28%
Vaisala's President and CEO Kjell Forsén comments on second quarter 2016
"Vaisala's second quarter net sales were EUR 75.6 million, increasing 10% from
the strong first quarter of this year but 2% down from previous year's second
quarter. Weather Business Area's net sales decreased by 5% to EUR 50.6 million
following modest project deliveries of Meteorology Infrastructure business unit
and weak market conditions in EMEA. Controlled Environment Business Area
continued its good performance in all regions. Its net sales increased by 6%
year-on-year to EUR 25.0 million and the growth was fastest in APAC. Also on
Vaisala level APAC net sales growth was strong 29% and now both APAC and EMEA
represent 30% of second quarter total net sales.
Vaisala's second quarter orders received decreased by 2% year-on-year to EUR
77.0 million. Weather Business Area's orders received decreased by 9% to EUR
50.1 million. Order intake was slow in Transportation and Meteorology
Infrastructure business units. Controlled Environment Business Area's orders
received increased significantly by 14% to EUR 26.8 million.
In the second quarter 2016, Vaisala's operating result was EUR 3.4 million and
it decreased by EUR 0.6 million. Controlled Environment Business Area continues
to deliver a good 60% gross margin and 17% operating profit.
The agreement to divest Transportation field service and AWOS business in the
U.S. was successfully signed in June. The business transfer is expected to be
completed in October and related annual cost savings are estimated to be EUR 6
million with a full impact from 2017 onwards.
Market outlook for Vaisala is generally stable but the result of UK European
Union membership referendum and related financial market volatility have
increased economic uncertainty and this is expected to delay customers' decision
making especially in Europe. Renewable energy market outlook is solid but
Vaisala's market penetration continues to be slower than expected. Market
outlook for industrial measurement solutions continues to be solid and Vaisala
is performing well in the market.
Our business outlook for the whole year remains unchanged. Vaisala continues to
estimate its full year 2016 net sales to be in the range of EUR 305-335 million
and its operating result (EBIT) to be in the range of EUR 25-35 million."
Key Figures
4-6/ 4-6/ 1-6/ 1-6/ 1-12/
2016 2015 2016 2015 2015
-------------------------------------------------------------------------------
Orders received, EUR million 77.0 78.5 141.7 147.4 320.0
Order book, EUR million 123.5 140.4 123.5 140.4 129.2
Net sales, EUR million 75.6 77.0 144.3 135.6 318.5
Gross profit, EUR million 37.2 38.3 72.2 64.6 162.8
Gross margin, % 49.2 49.8 50.1 47.6 51.1
Operating expenses, EUR million 34.1 34.5 67.1 66.7 131.9
Operating result, EUR million 3.4 4.1 2.4 -3.6 29.6
Operating result, % 4.5 5.3 1.6 -2.7 9.3
Profit (loss) before taxes, EUR million 3.9 2.9 1.2 -0.8 33.0
Profit (loss) for the period, EUR million 3.0 2.2 0.9 -0.6 27.5
Earnings per share, EUR 0.17 0.12 0.05 -0.03 1.52
Return on equity, % 1.1 -0.7 15.7
Capital expenditure, EUR million 2.9 2.3 4.0 3.3 8.3
Depreciation, EUR million 3.5 3.8 7.2 7.7 15.1
Cash flow from operating activities, EUR million 7.7 -1.0 7.2 5.3 38.8
Cash and cash equivalents, EUR million 43.2 33.7 59.2
-------------------------------------------------------------------------------
Market situation in April-June 2016
In the second quarter 2016, global economic growth continued to decelerate.
Business environment remained unfavorable especially in several commodity
intensive emerging economies, where low export prices have affected governmental
finances and weakened demand from public customers. In developed economies
business environment was overall moderate, even though economic growth
decelerated especially in Europe and Japan. Regional differences characterized
especially weather observation market, demand for industrial measurement
solutions was good overall.
In EMEA weather observation market was weak especially in CIS countries and
Europe. Vaisala's weather observation solution deliveries were modest. In Middle
East and Africa Vaisala's deliveries increased. Demand for industrial
measurement solutions remained favorable in EMEA.
In Americas solid weather observation market conditions continued in North
America. Governmental funding remained stable and demand for Vaisala's offering
was good. In Latin America weather observation market was weak in particular due
to difficult economic conditions in Brazil. Demand for industrial measurement
solutions in Americas remained stable.
In APAC demand for Vaisala's weather observation and industrial measurement
solutions was not affected by decelerated economic growth in China and Japan. In
weather observation market Vaisala's deliveries were good and customer activity
for orders remained solid. Favorable market conditions for industrial
measurement solutions continued in Japan as well as in China, in rest of APAC
demand was stable.
April-June 2016 performance
Orders received
EUR million 4-6/2016 4-6/2015 Change, % 2015
---------------------------------------------------------
Weather 50.1 54.9 -9 225.6
Controlled Environment 26.8 23.6 14 94.4
---------------------------------------------------------
Total 77.0 78.5 -2 320.0
---------------------------------------------------------
In the second quarter 2016, Vaisala's orders received were EUR 77.0 (78.5)
million and decreased by 2% compared to previous year. The decrease came from
EMEA.
In the second quarter 2016, Weather Business Area's orders received were EUR
50.1 (54.9) million and decreased by 9% compared to previous year. The decrease
came from Transportation and Meteorology Infrastructure business units.
In the second quarter 2016, Controlled Environment Business Area's orders
received were EUR 26.8 (23.6) million and increased by 14% compared to previous
year. The increase came from all regions.
Order book
June 30, June 30, December 31,
EUR million 2016 2015 Change, % 2015
----------------------------------------------------------------
Weather 114.8 132.3 -13 122.2
Controlled Environment 8.7 8.1 7 7.0
----------------------------------------------------------------
Total 123.5 140.4 -12 129.2
----------------------------------------------------------------
At the end of June 2016, Vaisala's order book was EUR 123.5 (140.4) million and
decreased by 12% compared to previous year. The order book decreased in EMEA and
APAC. Of the order book EUR 77.3 (81.9) million will be delivered in 2016.
At the end of June 2016, Weather Business Area's order book was EUR 114.8
(132.3) million and decreased by 13% compared to previous year. Order book
decreased in Meteorology Infrastructure and Transportation business units. Of
the order book EUR 69.6 (74.1) million will be delivered in 2016. The EUR 20
million contract with National Hydro-Meteorological Service of Vietnam is not
included in order book for the second quarter as the order will be added in
order book when the customer has given the final approval for the technical
design.
At the end of June 2016, Controlled Environment Business Area's order book was
EUR 8.7 (8.1) million and increased by 7% compared to previous year. Order book
increased in EMEA and APAC. Of the order book EUR 7.7 (7.8) million will be
delivered in 2016.
Net sales by business area
EUR million 4-6/2016 4-6/2015 Change, % 2015
----------------------------------------------------------
Weather 50.6 53.3 -5 225.5
Products 25.0 24.6 2 116.2
Projects 17.0 19.7 -14 71.0
Services 8.6 9.0 -4 38.3
Controlled Environment 25.0 23.7 6 93.0
Products 22.3 21.0 6 83.5
Services 2.7 2.6 1 9.5
----------------------------------------------------------
Total 75.6 77.0 -2 318.5
----------------------------------------------------------
Net sales by geographical area
EUR million 4-6/2016 4-6/2015 Change, % 2015
----------------------------------------------------------
EMEA 23.0 28.0 -18 105.1
Americas 29.9 31.4 -5 132.0
APAC 22.7 17.5 29 81.3
----------------------------------------------------------
Total 75.6 77.0 -2 318.5
----------------------------------------------------------
In the second quarter 2016, Vaisala's net sales were EUR 75.6 (77.0) million and
decreased by 2% compared to previous year. Vaisala's net sales in EMEA were EUR
23.0 (28.0) million and decreased by 18%, in the Americas EUR 29.9 (31.4)
million and decreased by 5% and in APAC EUR 22.7 (17.5) million and increased by
29%. At comparable exchange rates net sales would have been EUR 76.8 (77.0)
million and decrease would have been EUR 0.1 million or 0% from previous year.
The negative exchange rate effect was EUR 1.3 million, which was mainly caused
by USD exchange rate depreciation against EUR.
In the second quarter 2016, Weather Business Area's net sales were EUR 50.6
(53.3) million and decreased by 5% compared to previous year. The decrease came
mainly from Meteorology Infrastructure. Especially project business decreased.
At comparable exchange rates the net sales would have been EUR 51.4 (53.3)
million and decrease would have been EUR 1.9 million or 4% from previous year.
The negative exchange rate effect was EUR 0.9 million, which was mainly caused
by USD and AUD depreciation against EUR.
In the second quarter 2016, Controlled Environment Business Area's net sales
were EUR 25.0 (23.7) million and increased by 6% compared to previous year. The
growth came from all regions, mainly from APAC. At comparable exchange rates
the net sales would have been EUR 25.4 (23.7) million and increase would have
been EUR 1.8 million or 7% from previous year. The negative exchange rate effect
was EUR 0.4 million, which was mainly caused by USD and CNY depreciation against
EUR, whereas JPY had a positive exchange rate effect.
Gross margin and operating result
4-6/2016 4-6/2015 2015
------------------------------------------------------
Gross margin, % 49.2% 49.8% 51.1%
Weather 44.0% 45.4% 47.4%
Controlled Environment 60.0% 59.4% 60.4%
Operating result, EUR million 3.4 4.1 29.6
Weather -0.9 0.6 15.2
Controlled Environment 4.3 4.0 18.3
Other 0.0 -0.6 -4.0
------------------------------------------------------
In the second quarter 2016, Vaisala's operating result was EUR 3.4 (4.1) million
and weakened by EUR 0.6 million compared to previous year. Operating result
decrease was due to lower net sales and gross margin in Weather Business Area.
Gross margin was 49.2% (49.8%) and the decrease was mainly due to low volume of
project deliveries and related weakness of gross margin in Weather Business
Area. Operating expenses were EUR 34.1 (34.5) million and decreased by 1%. The
decrease came from lower sales and administration costs.
In the second quarter 2016, Weather Business Area's operating result was EUR
-0.9 (0.6) million and weakened by EUR 1.5 million compared to previous year.
Operating result decrease was mainly due to lower net sales and gross margin.
Gross margin was 44.0% (45.4%) and the decrease was mainly due to low volume of
project deliveries and related weakness of gross margin. Operating expenses were
EUR 23.1 (23.7) million and decreased by 3%. The decrease came from lower sales
and administration costs. Operating expenses decreased, even though EUR 0.4
million credit losses were booked as SunEdison Inc., a major solar power company
and Weather Business Area's customer, filed for Chapter 11 bankruptcy protection
in April.
In the second quarter 2016, Controlled Environment Business Area's operating
result was EUR 4.3 (4.0) million and improved by EUR 0.3 million compared to
previous year. Operating result increase was due to higher net sales and gross
margin. Gross margin was 60.0% (59.4%). Operating expenses were EUR 10.7 (10.0)
million and increased by 7%. The increase came mainly from continued
investments in research and development.
In the second quarter 2016, financial income and expenses were EUR 0.5 (-1.1)
million. Financial income and expenses are mainly related to the to the
valuation of USD denominated receivables.
In the second quarter 2016, profit/loss before taxes was EUR 3.9 (2.9) million.
Income taxes were EUR
-0.9 (-0.7) million. Net result was EUR 3.0 (2.2) million.
In the second quarter 2016, earnings per share were EUR 0.17 (0.12).
First half of 2016 performance
Orders received
EUR million 1-6/2016 1-6/2015 Change, % 2015
---------------------------------------------------------
Weather 91.1 100.2 -9 225.6
Controlled Environment 50.7 47.2 7 94.4
---------------------------------------------------------
Total 141.7 147.4 -4 320.0
---------------------------------------------------------
In the first half of 2016, Vaisala's orders received were EUR 141.7 (147.4)
million and decreased by 4% compared to previous year. The decrease came from
EMEA and Americas.
In the first half of 2016, Weather Business Area's orders received were EUR
91.1 (100.2) million and decreased by 9% compared to previous year. The decrease
came from Meteorology Infrastructure and Transportation business units.
In the first half of 2016, Controlled Environment Business Area's orders
received were EUR 50.7 (47.2) million and increased by 7% compared to previous
year. The increase came from all regions.
Order book
EUR million June 30, June 30, Change, % December 31,
2016 2015 2015
----------------------------------------------------------------
Weather 114.8 132.3 -13 122.2
Controlled Environment 8.7 8.1 7 7.0
----------------------------------------------------------------
Total 123.5 140.4 -12 129.2
----------------------------------------------------------------
At the end of June 2016, Vaisala's order book was EUR 123.5 (140.4) million and
decreased by 12%. The order book decreased in EMEA and APAC. Of the order book
EUR 77.3 (81.9) million will be delivered in 2016.
At the end of June 2016, Weather Business Area's order book was EUR 114.8
(132.3) million and decreased by 13% compared to previous year. Order book
decreased in Meteorology Infrastructure and Transportation business units. Of
the order book EUR 69.6 (74.1) million will be delivered in 2016. The EUR 20
million contract with National Hydro-Meteorological Service of Vietnam is not
included in order book for the second quarter as the order will be added in
order book when the customer has given the final approval for the technical
design.
At the end of June 2016, Controlled Environment Business Area's order book was
EUR 8.7 (8.1) million and increased by 7% compared to previous year. Order book
increased in EMEA and APAC. Of the order book EUR 7.7 (7.8) million will be
delivered in 2016.
Net sales by business area
EUR million 1-6/2016 1-6/2015 Change, % 2015
----------------------------------------------------------
Weather 95.3 90.5 5 225.5
Products 50.8 43.5 17 116.2
Projects 26.9 29.3 -8 71.0
Services 17.5 17.7 -1 38.3
Controlled Environment 49.0 45.1 9 93.0
Products 43.6 40.3 8 83.5
Services 5.4 4.8 12 9.5
----------------------------------------------------------
Total 144.3 135.6 6 318.5
----------------------------------------------------------
Net sales by geographical area
EUR million 1-6/2016 1-6/2015 Change, % 2015
----------------------------------------------------------
EMEA 44.6 47.4 -6 105.1
Americas 59.4 52.8 12 132.0
APAC 40.2 35.4 14 81.3
----------------------------------------------------------
Total 144.3 135.6 6 318.5
----------------------------------------------------------
In the first half of 2016, Vaisala's net sales were EUR 144.3 (135.6) million
and increased by 6% compared to previous year. Vaisala's net sales in EMEA were
EUR 44.6 (47.4) million and decreased by 6%, in the Americas EUR 59.4 (52.8)
million and increased by 12% and in APAC EUR 40.2 (35.4) million and increased
by 14%. Operations outside Finland accounted for 98% (98%) of net sales. At
comparable exchange rates net sales would have been EUR 144.0 (135.6) million
and increase would have been EUR 8.3 million or 6% from previous year. The
positive exchange rate effect was EUR 0.3 million, which was mainly caused by
USD and JPY exchange rate appreciation against EUR.
In the first half of 2016, Weather Business Area's net sales were EUR 95.3
(90.5) million and increased by 5% compared to previous year following growth in
product business. The increase came from all business units, mainly from
Transportation and Meteorology Infrastructure. At comparable exchange rates the
net sales would have been EUR 95.2 (90.5) million and increase would have been
EUR 4.8 million or 5% from previous year. The positive exchange rate effect was
EUR 0.0 million, which was mainly caused by USD appreciation against EUR.
In the first half of 2016, Controlled Environment Business Area's net sales were
EUR 49.0 (45.1) million and increased by 9% compared to previous year. The
growth came from all regions. At comparable exchange rates the net sales would
have been EUR 48.7 (45.1) million and increase would have been EUR 3.6 million
or 8% from previous year. The positive exchange rate effect was EUR 0.3 million,
which was mainly caused by JPY and USD appreciation against EUR.
Gross margin and operating result
1-6/2016 1-6/2015 2015
------------------------------------------------------
Gross margin, % 50.1% 47.6% 51.1%
Weather 44.8% 42.1% 47.4%
Controlled Environment 60.4% 58.7% 60.4%
Operating result, EUR million 2.4 -3.6 29.6
Weather -2.8 -8.1 15.2
Controlled Environment 9.3 7.4 18.3
Other -4.1 -2.9 -4.0
------------------------------------------------------
In the first half of 2016, Vaisala's operating result was EUR 2.4 (-3.6) million
and improved by EUR 6.0 million compared to previous year. Operating result
increase was due to higher net sales and gross margin in both Weather and
Controlled Environment Business Areas. Gross margin was 50.1% (47.6%) and the
increase was mainly due to higher sales volumes and related improvement in scale
economies and higher profitability in calibration and repair services. Operating
expenses were EUR 67.1 (66.7) million and increased by 1%. The increase came
mainly from continued investments in research and development. In addition,
operating result was decreased by EUR 2.8 million expenses related to the
restructuring of Transportation business unit.
In the first half of 2016, Weather Business Area's operating result was EUR -2.8
(-8.1) million and improved by EUR 5.3 million compared to previous year.
Operating result increase was mainly due to higher net sales and gross margin.
Gross margin was 44.8% (42.1%) and the increase was mainly due to higher sales
volumes and related improvement in scale economies as well as improved
profitability in product businesses and calibration and repair service.
Operating expenses were EUR 45.5 (46.4) million and decreased by 2%. The
decrease came mainly from lower administration expenses. Operating expenses
decreased, even though EUR 0.4 million credit losses were booked as SunEdison
Inc., a major solar power company and Weather Business Area's customer, filed
for Chapter 11 bankruptcy protection in April.
In the first half of 2016, Controlled Environment Business Area's operating
result was EUR 9.3 (7.4) million and improved by EUR 1.9 million compared to
previous year. Operating result increase was due to higher net sales and gross
margin. Gross margin was 60.4% (58.7%) and the increase was mainly due to
improved profitability in calibration and repair service as well as higher sales
volumes and related improvement in scale economies. Operating expenses were EUR
20.3 (19.1) million and increased by 6%. The increase came mainly from continued
investments in research and development.
In the first half of 2016, financial income and expenses were EUR -1.2 (2.8)
million. Financial income and expenses are mainly related to the to the
valuation of USD denominated receivables.
In the first half of 2016, profit/loss before taxes was EUR 1.2 (-0.8) million.
Income taxes were EUR
-0.3 (+0.2) million. Net result was EUR 0.9 (-0.6) million.
In the first half of 2016, earnings per share were EUR 0.05 (-0.03).
Statement of financial position and cash flow
Vaisala's financial position remained strong at the end of June 2016. Cash and
cash equivalents amounted to EUR 43.2 (33.7) million. At the end of June 2016
Vaisala did not have any material interest bearing liabilities.
The statement of financial position total was EUR 239.3 (235.9) million.
Compared to the end of June 2015 balance sheet total increased mainly due to
higher equity and cash and cash equivalents related to good profitability during
past twelve months. Fixed assets on the other hand have decreased as the
depreciation continues to be higher than new capital expenditures.
In the first half of 2016, Vaisala's cash flow from operating activities
increased to EUR 7.2 (5.3) million because of the profitability improvement
year-on-year. The working capital is close to the previous year level.
Capital expenditure
In the first half of 2016, gross capital expenditure totaled EUR 4.0 (3.3)
million. Capital expenditure was mainly related to investments in machinery and
equipment to develop and maintain Vaisala's production and service operations.
Depreciation and amortization was EUR 7.2 (7.7) million.
Research and development
In the first half of 2016, research and development expenses totaled EUR 19.4
(17.8) million, representing 13.5% (13.1%) of net sales.
R&D by business area
4-6/ 4-6/ Change, 1-6/ 1-6/ Change,
EUR million 2016 2015 % 2016 2015 % 2015
----------------------------------------------------------------
Weather 7.0 6.8 2 13.7 13.1 4 26.7
Controlled Environment 2.9 2.5 17 5.7 4.7 22 9.4
----------------------------------------------------------------
Total 9.9 9.3 6 19.4 17.8 9 36.1
----------------------------------------------------------------
In the first half of 2016, Weather Business Area R&D expenses were 14.4% (14.5%)
of net sales. Controlled Environment Business Area R&D expenses were 11.6%
(10.3%) of net sales, which is in line with continued investments in new product
development.
Personnel
The average number of personnel employed in Vaisala during the first half of
2016 was 1,597 (1,617). The number of employees at the end of June 2016 was
1,634 (1,650) and it includes 64 (67) summer trainees. At the end of 2015, the
number of employees was 1,588.
At the end of June 2016, 39% (43%) of employees were based outside Finland.
Vaisala to exit certain Transportation products and field services
Vaisala made the decision on February 10, 2016 to reshape its Transportation
business unit within Weather Business Area to simplify structure and improve
profitability. Going forward, Transportation business unit will focus on product
leadership, delivery capability and expansion of information services in order
to drive growth, profitability and customer focus.
Transportation business unit will exit the field service business in all
countries except the United Kingdom as Vaisala's field service offering is no
longer competitive in those countries due to increasing price pressure.
Transportation business unit will also exit the United States Automated Weather
Observing System (U.S. AWOS) business. The U.S. AWOS is based on unique
technology designed solely for the U.S. Federal Aviation Administration (FAA)
regulated small airport markets and it differs from Vaisala's common technology
platform.
Vaisala signed the agreement to sell related businesses in the U.S. in June,
2016. The business transfer is expected to take place in two phases in the
beginning of August and beginning of October. During the second quarter 2016
Vaisala has classified related assets and liabilities as held for sale.
When completed the changes lead to a reduction of approximately 60 employees.
23 persons have already left Vaisala and majority of the remaining employees in
the U.S. are expected to be employed by the buyer. Estimated annual cost savings
are EUR 6 million and they are expected to contribute fully to 2017
profitability. The already realized cost saving of EUR 0.5 million and
restructuring expenses of EUR 2.8 million are reported in this Half Year
Financial Report 2016.
Near-term risks and uncertainties
Uncertainties in world economic and political situation as well as changes in
customer behavior may cause demand slowdown or delays in customer projects.
Especially market situation in China, Brazil and continuing conflicts in Middle
East and Africa may cause interruptions in business. Also increasing
competition, changes in price levels and exchange rates may impact Vaisala's net
sales and profitability.
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.
The ongoing business expansion in renewable energy market may be delayed due to
long authorization and approval processes, evolving business models and
customers' postponing decision making. Delays in new product ramp-ups and market
acceptance of new offering may postpone the realization of Vaisala's growth
plans.
Suppliers' and subcontractors' delivery capability or operating environment as
well as product quality may impact Vaisala's net sales and profitability. Cyber
risk and availability of IT systems may impact operations, delivery of
information services or Internet-based services or cause financial loss.
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.
Decisions by Vaisala Corporation's Annual General Meeting
Vaisala Corporation's Annual General Meeting was held on April 5, 2016. 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, 2015.
Dividend
The Annual General Meeting decided a dividend of EUR 0.95 per share,
corresponding to the total of EUR 17.1 million. The record date for the dividend
payment was April 7, 2016 and the payment date was April 14, 2016.
Board of Directors
The Annual General Meeting confirmed that the number of Board members is seven.
Petra Lundström, Yrjö Neuvo, Mikko Niinivaara, Pertti Torstila, Raimo Voipio and
Ville Voipio will continue as members of the Board of Directors. Kaarina
Ståhlberg was elected as a new member of the Board of Directors.
The Annual General Meeting confirmed that 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 2017. 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.
The authorization is valid until the closing of the next Annual General Meeting,
however, no longer than October 5, 2017.
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 391,550 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. The authorization is valid
until April 5, 2021.
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 Petra Lundström 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 and Mikko Niinivaara as
members of the Remuneration and HR Committee. Raimo Voipio is independent of the
Company. Yrjö Neuvo and Mikko Niinivaara 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 June 30, 2016. On June
30, 2016, Vaisala had 18,218,364 shares, of which 3,389,351 are series K shares
and 14,829,013 are series A shares. The K shares and A shares are differentiated
by the fact that each K share entitles its owner to 20 votes at a 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.
Trading in shares on the Nasdaq Helsinki Ltd
In the first half of 2016, a total of 1,172,127 (1,564,467) Vaisala shares with
a value totaling EUR 30.1 (37.9) million were traded on the Nasdaq Helsinki Ltd.
The closing price of the Vaisala Corporation share on the Nasdaq Helsinki Ltd
stock exchange in June 2016 was EUR 28.35 (23.50). Shares registered a high of
EUR 29.83 (27.02) and a low of EUR 21.81 (21.55).
The market value of Vaisala's A shares on June 30, 2016 was EUR 412.7 (346.8)
million, excluding the Company's treasury 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 last day of June, the total market value of all the A and K shares
together was EUR 508.8 (426.5) million, excluding the Company's treasury shares.
At the end of June, 2016 Vaisala Corporation had 7,454 (7,242) registered
shareholders. Ownership outside of Finland and nominee registrations represented
14.32% (15.72%) of the company's shares. Households owned 40.85% (45.31%),
private companies 14.23% (13.43%), financial and insurance institutions 12.80%
(11.29%), non-profit organizations 11.80% (8.07%) and public sector
organizations owned 5.97% (6.16%).
Repurchases of company's treasury shares
Vaisala Corporation's Board of Directors resolved to commence repurchases of
shares under the authorization given by the Vaisala Annual General Meeting held
on April 5, 2016. The Board of Directors resolved to 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. The repurchases commenced
on May 2, 2016.
Transfer of company's treasury shares
The Board of Directors of Vaisala Corporation decided to transfer a total of
1,500 Company's series A treasury shares to a person participating in the share
based incentive plan. The transfer was done in June 2016 according to the terms
and conditions of the Performance Share Plan.
At the end of June 2016, the Company held a total of 270,333 Vaisala A shares,
which represented 1.8% of all A-shares in the Company and 1.5% of all shares in
the Company.
More information about Vaisala's share and shareholders are presented on the
website, www.vaisala.com/investors.
Market outlook 2016
Even though global economic outlook has recently slightly weakened, market
outlook for Vaisala is generally stable. However, the result of United Kingdom
European Union membership referendum and related financial market volatility
have increased economic uncertainty and this is expected to delay customers'
decision making especially in Europe.
Weather observation market outlook is solid overall, but regional differences
are expected to remain. Business opportunities in oil and gas related markets
are expected to remain weak throughout the year due to low crude oil prices.
Renewable energy market outlook is solid, although delays in customers' decision
making as well as in Vaisala's market penetration are expected in some regions.
Market outlook for industrial measurement solutions is solid.
In EMEA weather observation market is expected to stay modest due to ongoing
uncertainty in economic conditions. Economic challenges due to strong dependency
on crude oil continue to slow down customers' decision making in CIS countries.
Demand for industrial measurement solutions is expected to remain solid.
In North America demand for weather observation solutions is expected to
decrease slightly from 2015.
Vaisala's deliveries are estimated to be on similar level as in 2015, supported
by strong inflow of new orders from renewable energy and transportation markets
in late 2015. Weather observation market is expected to remain weak in Latin
America. Demand for industrial measurement solutions is expected to remain
stable in Americas.
In APAC demand for weather observation solutions is expected to increase from
2015. In China demand is expected to be stable, whereas in rest of APAC demand
is expected to grow from 2015 especially in transportation and renewable energy
businesses. Demand for industrial measurement solutions is expected to remain
solid.
Business outlook for 2016
Vaisala continues to estimate its full year 2016 net sales to be in the range of
EUR 305-335 million and its operating result (EBIT) to be in the range of EUR
25-35 million.
Vantaa, July 21, 2016
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
The Interim Report and Half Year Financial Report have been prepared in
accordance with IAS 34, Interim Financial Reporting, following the same
accounting policies and principles as in the annual financial statements for
2015. All reported figures 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. The Interim Report and Half Year Financial Report
are unaudited.
Consolidated Statement of Income
4-6/ 4-6/ 1-6/ 1-6/ 1-12/
EUR million 2016 2015 2016 2015 2015
-------------------------------------------------------------------------------
Net sales 75.6 77.0 144.3 135.6 318.5
Costs of sales -38.3 -38.6 -72.0 -71.0 -155.6
-------------------------------------------------------------------------------
Gross profit 37.2 38.3 72.2 64.6 162.8
Sales, marketing and administrative costs -24.2 -25.2 -47.7 -48.9 -95.8
Research and development costs -9.9 -9.3 -19.4 -17.8 -36.1
Other operating income and expense 0.3 0.2 -2.7 -1.6 -1.3
-------------------------------------------------------------------------------
Operating profit (loss) 3.4 4.1 2.4 -3.6 29.6
Share of result in associated companies - - - - -0.1
Financial income and expenses, net 0.5 -1.1 -1.2 2.8 3.5
-------------------------------------------------------------------------------
Profit (loss) before taxes 3.9 2.9 1.2 -0.8 33.0
Income taxes -0.9 -0.7 -0.3 0.2 -5.5
-------------------------------------------------------------------------------
Profit (loss) for the period 3.0 2.2 0.9 -0.6 27.5
Earnings per share, EUR 0.17 0.12 0.05 -0.03 1.52
Diluted earnings per share, EUR 0.17 0.12 0.05 -0.03 1.51
Consolidated Statement of Comprehensive Income
4-6/ 4-6/ 1-6/ 1-6/ 1-12/
EUR million 2016 2015 2016 2015 2015
-------------------------------------------------------------------------------
Items that will not be reclassified to profit or loss
Actuarial profit (loss) on post-employment
benefits 0.0 0.0 0.0 0.0 0.4
-------------------------------------------------------------------------------
Total 0.0 0.0 0.0 0.0 0.4
-------------------------------------------------------------------------------
Items that may be reclassified subsequently to profit
or loss
Currency translation differences 0.6 -0.8 -0.8 3.1 3.1
-------------------------------------------------------------------------------
Total 0.6 -0.8 -0.8 3.1 3.1
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Total other comprehensive income 0.6 -0.8 -0.8 3.1 3.5
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Total comprehensive income 3.6 1.4 0.2 2.5 31.0
-------------------------------------------------------------------------------
Consolidated Statement of Financial Position
EUR million
-------------------------------------------------------------------------------
June 30, June 30, December 31,
Assets 2016 2015 2015
-------------------------------------------------------------------------------
Non-current assets
Intangible assets 30.6 36.1 34.0
Property, plant and equipment 42.2 44.0 44.1
Investments 0.1 0.1 0.1
Investment in associated companies 0.8 0.8 0.8
Long-term receivables 0.8 0.3 0.8
Deferred tax assets 12.3 11.8 10.2
-------------------------------------------------------------------------------
Total non-current assets 86.9 93.2 90.0
Current assets
Inventories 39.1 41.2 39.0
Trade and other receivables 65.9 66.7 74.6
Income tax receivables 2.5 1.2 1.2
Cash and cash equivalents 43.2 33.7 59.2
-------------------------------------------------------------------------------
Total current assets 150.8 142.7 174.0
Assets classified as held for sale 1.7 0.0 0.0
-------------------------------------------------------------------------------
Total assets 239.3 235.9 264.0
-------------------------------------------------------------------------------
June 30, June 30, December 31,
Shareholders' equity and liabilities 2016 2015 2015
-------------------------------------------------------------------------------
Shareholders' equity
Share capital 7.7 7.7 7.7
Other reserves 1.5 0.8 1.1
Cumulative translation adjustment 2.1 2.8 2.9
Treasury shares -6.5 -1.4 -4.3
Retained earnings 157.7 145.5 173.9
-------------------------------------------------------------------------------
Total shareholders' equity 162.5 155.3 181.3
Non-current liabilities
Interest-bearing liabilities 0.0 0.0 0.0
Post-employment benefit obligations 2.4 2.4 2.1
Deferred tax liabilities 4.4 5.0 4.5
Provisions for other liabilities and charges 0.2 0.2 0.2
Other long-term liabilities 0.6 1.3 0.8
-------------------------------------------------------------------------------
Total non-current liabilities 7.6 9.0 7.6
Current liabilities
Interest-bearing liabilities 0.0 0.0 0.0
Advances received 3.6 5.5 3.9
Income tax liabilities 0.1 0.8 1.7
Provisions for other liabilities and charges 3.3 0.1 0.4
Trade and other payables 61.4 65.1 69.2
-------------------------------------------------------------------------------
Total current liabilities 68.4 71.6 75.1
Liabilities directly associated with assets
classified as held for sale 0.8 0.0 0.0
-------------------------------------------------------------------------------
Total shareholders' equity and liabilities 239.3 235.9 264.0
-------------------------------------------------------------------------------
Consolidated Statement of Changes in Shareholders' Equity
Share Other Treasury Translation Retained
EUR million capital reserves shares adjustment earnings Total
-------------------------------------------------------------------------------
Balance at Jan 1, 2015 7.7 2.5 -2.5 -0.2 162.6 170.0
Profit (loss) for the
period -0.6 -0.6
Other comprehensive
income 0.0 3.0 3.1
Dividend paid -16.4 -16.4
Purchase of treasury
shares -1.0 -1.0
Sale of treasury shares 2.1 -2.1 0.0
Share-based payment -1.7 1.9 0.2
-------------------------------------------------------------------------------
Balance at Jun 30, 2015 7.7 0.8 -1.4 2.8 145.5 155.3
-------------------------------------------------------------------------------
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 0.9 0.9
Other comprehensive
income -0.0 -0.8 -0.8
Dividend paid -17.1 -17.1
Purchase of treasury
shares -2.2 -2.2
Share-based payment 0.3 0.0 0.4
-------------------------------------------------------------------------------
Balance at Jun 30, 2016 7.7 1.5 -6.5 2.1 157.7 162.5
-------------------------------------------------------------------------------
Consolidated Cash Flow Statement
1-6/ 1-6/ 1-12/
EUR million 2016 2015 2015
-------------------------------------------------------------------------------
Cash flows from operating activities
Cash receipts from customers 159.8 159.2 325.4
Other income from business operations 0.0 -1.4 -1.4
Cash paid to suppliers and employees -146.2 -148.0 -277.1
Financials paid, net -1.1 -1.2 -1.0
Income taxes paid, net -5.3 -3.4 -7.2
-------------------------------------------------------------------------------
Cash flow from operating activities 7.2 5.3 38.8
Cash flows from investing activities
Capital expenditure on fixed assets -4.0 -3.3 -8.3
Divestments 0.0 0.0 0.2
-------------------------------------------------------------------------------
Cash flow from investing activities -3.9 -3.3 -8.1
Cash flows from financing activities
Dividends paid -17.1 -16.4 -16.4
Purchase of treasury shares -1.9 -1.0 -3.9
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 -19.1 -17.3 -20.2
Cash and cash equivalents at the beginning of period 59.2 47.6 47.6
Net increase (+) / decrease (-) in cash and cash
equivalents -15.9 -15.3 10.5
Effect from changes in exchange rates -0.1 1.4 1.0
-------------------------------------------------------------------------------
Cash and cash equivalents at the end of period 43.2 33.7 59.2
-------------------------------------------------------------------------------
Notes for Report
Orders Received by Business Area
4-6/ 4-6/ 1-6/ 1-6/ 1-12/
EUR million 2016 2015 2016 2015 2015
---------------------------------------------------------
Weather 50.1 54.9 91.1 100.2 225.6
Controlled Environment 26.8 23.6 50.7 47.2 94.4
---------------------------------------------------------
Total 77.0 78.5 141.7 147.4 320.0
---------------------------------------------------------
Net Sales by Business Area
4-6/ 4-6/ 1-6/ 1-6/ 1-12/
EUR million 2016 2015 2016 2015 2015
---------------------------------------------------------
Weather
Products 25.0 24.6 50.8 43.5 116.2
Projects 17.0 19.7 26.9 29.3 71.0
Services 8.6 9.0 17.5 17.7 38.3
---------------------------------------------------------
Total 50.6 53.3 95.3 90.5 225.5
Controlled Environment
Products 22.3 21.0 43.6 40.3 83.5
Services 2.7 2.6 5.4 4.8 9.5
---------------------------------------------------------
Total 25.0 23.7 49.0 45.1 93.0
Sales, other 0.0 0.0 0.0 0.0 0.0
---------------------------------------------------------
Total Sales 75.6 77.0 144.3 135.6 318.5
---------------------------------------------------------
Operating Result by Business Area
4-6/ 4-6/ 1-6/ 1-6/ 1-12/
EUR million 2016 2015 2016 2015 2015
---------------------------------------------------------
Weather -0.9 0.6 -2.8 -8.1 15.2
Controlled Environment 4.3 4.0 9.3 7.4 18.3
Other 0.0 -0.6 -4.1 -2.9 -4.0
---------------------------------------------------------
Total 3.4 4.1 2.4 -3.6 29.6
---------------------------------------------------------
Net Sales by Geographical Area
4-6/ 4-6/ 1-6/ 1-6/ 1-12/
EUR million 2016 2015 2016 2015 2015
---------------------------------------------------------
EMEA 23.0 28.0 44.6 47.4 105.1
Americas 29.9 31.4 59.4 52.8 132.0
APAC 22.7 17.5 40.2 35.4 81.3
---------------------------------------------------------
Total 75.6 77.0 144.3 135.6 318.5
---------------------------------------------------------
Personnel
4-6/ 4-6/ 1-6/ 1-6/ 1-12/
2016 2015 2016 2015 2015
-------------------------------------------------------------------------------
Average personnel 1,613 1,626 1,597 1,617 1,611
Personnel at the end of
period 1,634 1,650 1,634 1,650 1,588
-------------------------------------------------------------------------------
Financial Instruments
4-6/ 4-6/ 1-6/ 1-6/ 1-12/
2016 2015 2016 2015 2015
-------------------------------------------------------------------------------
Nominal value of financial derivatives, EUR
million 25.4 22.6 25.4 22.6 36.5
Fair values of financial derivatives, assets,
EUR million 0.1 0.3 0.1 0.3 0.1
Fair values of financial derivatives,
liabilities, EUR million 0.5 0.8 0.5 0.8 0.8
-------------------------------------------------------------------------------
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
4-6/ 4-6/ 1-6/ 1-6/ 1-12/
2016 2015 2016 2015 2015
-------------------------------------------------------------------------------
Number of shares outstanding, thousand 17,948 18,147 17,948 18,147 18,027
Number of treasury shares, thousand 270 72 270 72 192
Number of shares, diluted, thousand 18,257 18,287 18,016 18,287 18,259
Number of shares, weighted average,
thousand 18,005 18,172 18,016 18,129 18,103
Number of shares traded, thousand 626 889 1,172 1,564 2,508
Share price, highest, EUR 29.83 25.85 29.83 27.02 27.02
Share price, lowest, EUR 23.00 22.85 21.81 21.55 21.55
-------------------------------------------------------------------------------
Key Ratios
4-6/ 4-6/ 1-6/ 1-6/ 1-12/
2016 2015 2016 2015 2015
-------------------------------------------------------------------------------
Earnings per share, EUR 0.17 0.12 0.05 -0.03 1.52
Earnings per share, diluted, EUR 0.17 0.12 0.05 -0.03 1.51
Equity per share, EUR 9.05 8.56 9.05 8.56 10.06
Return on equity, % 1.1 -0.7 15.7
Cash flow from operating activities per
share, EUR 0.43 -0.06 0.40 0.29 2.15
Solvency ratio, % 68.9 67.4 69.7
-------------------------------------------------------------------------------
Further information
Kaarina Muurinen, CFO
Mobile +358 40 577 5066
Vaisala Corporation
Telephone conference and Audiocast
An English-language conference call for investors and analysts will be held
today, July 21, 2016 at 4:00 p.m. (Finnish time).
FI: +358 9 8171 0495
UK: +44 203 194 0552
SE: +46 8 5664 2702
US: +1 85 5716 1597
Live audiocast of the presentation by Kjell Forsén, President and CEO will start
at 4:00 p.m. and will be available at www.vaisala.com/investors. A recording
will be published at about 6:00 p.m.
Interim Report January-September 2016
Vaisala will publish its Interim Report January-September 2016 on Wednesday,
October 26, 2016 at approximately 2:00 p.m. Finnish time.
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
[HUG#2029920]
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