Observations for a Better World - Vaisala€¦ · Observations for a Better World Vaisala Capital...
Transcript of Observations for a Better World - Vaisala€¦ · Observations for a Better World Vaisala Capital...
Observations for aBetter WorldVaisala Capital Markets Day, June 13, 2017Kjell Forsén
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CEO’s Reflections on Vaisala’s Ten Years Journey From garage to industrial approach Customer focus/outside-in view Increased ambition for growth Development of capabilities Management changes Importance of compliance Simplification in broad scale Drive development of services business
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Vaisala Net Sales Has Grown 4.5% Annually Over the Past Ten Years
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2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Vaisala Weather and Environment Industrial Measurements
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MEUR
+45%
+14%
+91%
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Operating Profit Margin Improving Towards the Target level
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2006 2007 2008 2009 2010 2011 2012 2013* 2014 2015 2016**
Operating profit Operating profit margin
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MEUR%
* Excl. EUR 4.3 million write-down of goodwill and intangible assets from the acquisition of Veriteq Instruments Inc. in 2010.** Excl. EUR 10.5 million write down of intangible assets from the acquisitions of Second Wind Systems Inc. And 3TIER Inc. in 2013.
+5 p.p.
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Vaisala Has Invested in R&D Continuosly
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2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Vaisala Weather and Environment Industrial Measurements
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+84%
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+98%
MEUR
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Strong Cash Flow Provides Flexibility
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2006 2007 2008 2009 2010 2011 2012 2013* 2014 2015 2016**
Cash flow from operations EBIT
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MEUR
* Excl. EUR 4.3 million write-down of goodwill and intangible assets from the acquisition of Veriteq Instruments Inc. in 2010.** Excl. EUR 10.5 million write down of intangible assets from the acquisitions of Second Wind Systems Inc. And 3TIER Inc. in 2013.
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Solid Dividend Over the YearsDividend policy: Vaisala aims to pay a stable dividend, which will increase in line with net profit development. Vaisala’s goal is to maintain high solvency and to take future investment plans into account.
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0.90 0.90 0.90 0.95 1.00
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2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
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EUR
In 2013, in addition to dividend, EUR 1.23 per share was distributed to the shareholders as a return of capital.
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Strong Foundation for Profitabile Growth
Strategy well in line with global mega trends Active innovation Expanding addressable market Strong brand Systems and processes in place High customer satisfaction Competent people High employee satisfaction Strong cash flow and financial position
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Weather and Environment Markets
METEOROLOGY
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TRANSPORTATION RENEWABLE ENERGY AMBIENT AIR QUALITY
MEGA TRENDS
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Industrial Measurements Markets
HIGH-END HUMIDITY
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HIGH-END CARBON DIOXIDE LIFE SCIENCE POWER TRANSMISSION
MEGA TRENDS
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Strategic Priorities
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Weather and Environment
Drive profitability and growth through expansion of industry-leading products and digital solutions
• Improve competitiveness by renewal of product offering
• Grow through meteorological infrastructure improvement projects in developing countries
• Expand digital solutions• Build new business in
environmental measurements
Industrial Measurements
Further acclerate growth through product leadership
• Achieve strong foothold in power transmission and life science markets
• Continuosly create new winning products by discovering customer needs
• Seek new business opportunities in industrial applications
Operations
Continue to develop excellence in high mix low volume supply chain
• Increase productivity• Develop core production
technologies• Develop sourcing and
product life cycle management processes
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Long-term Financial Targets 2017–2021: Profitable Growth
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Growth
Profitability
Growth >
Profitability >
Average annual growth
Operating profit margin (EBIT)
Growth
Profitability
In selected markets
5%
15%
Digital solutionsLife sciencePower transmission
>10%
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Long-Term Financial Targets: EBIT 15%
0%
5%
10%
15%
20%
EBIT % 2016 excl.write-down*
EBIT % Target
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Growth of digital solutions and environmental measurements
accelerate gross margin improvement
Life science, power transmission and new instruments bring high value add to customers
*EUR 10.5 million write-down of intangible assets in Weather and Environment Business Area. The intangible assets were from the acquisitions of Second Wind Systems Inc. and 3TIER Inc. in 2013.
Growth of weather instruments and solutions business driving
economies of scale Growth of high-end humidity and carbon
dioxide business driven by expansion to new
markets and solutions areas generate
economies of scale
Investments in R&D and Sales &
Marketing capabilities
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Highlights of Values Createdfor Society, Environment & Employees in 2016
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of energy consumedIn 2016 was fromRenewable sources
89% Carbon Emissions Reduced by
-81%comparedto 2014
Waste recovery rateof the manufacturingsites was
98%
The Vilho, Yrjö and KalleVäisälä fundgranted donations to75
Water efficiencyat manufacturingsites improved by
67% in last10 years
Committed to use 100% renewable energy by 2020
Employee engagementindex4.08/5
researchersin 2016
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Highlights of Values Created for Customers in 2016
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Installations of HUMICAP®
Humidity and Temperature Transmitter Series HMT330
100,000+Every flight around the world will at some point use weather observations by Vaisala equipment
of the world’s top 10 electric utility companies
rely on data from Vaisala manufactured lightning detection networks
8wind and solar energyproject assessments to date
1,800+
97.9%
Space-proofsensorsVaisala technology has a long history in space:from 1950’s to today’s missions to
of surveyed customers were satisfied or very satisfied with Vaisala’s products
/10
Mars
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Market Outlook 2017 Global economic growth improved in Q1 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 Q1, 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. Industrial measurement market outlook for 2017
continues to be favorable.
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Business Outlook 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.
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273.6
293.3
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318.5 319.1
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2011 2012 2013 2014 2015 2016
MEUR MEURNet sales Operating result
16.1
30.2
18.1
26.429.6
22.3
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2011 2012 2013 2014 2015 2016
32.8*
* Excl. EUR 10.5 million write down of intangible assets from the acquisitions of Second Wind Systems Inc. And 3TIER Inc. in 2013.
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Observations for a Better World
19 June 13, 2017 Capital Markets Day 2017