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NACON Interim / Quarterly Report 2011
1539_rns_2011-04-27_ef4f8cde-b13e-4c3a-bb06-9d35c892a83a.pdf
Interim / Quarterly Report
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VAGON
DRIVEN BY DRIVES
INTERIM REPORT
JANUARY - MARCH 2011
VACON DRIVEN BY DRIVES
Vacon Plc, Stock Exchange Release, 27 April 2011 at 9.30 am
Vacon Plc Interim Report 1 January – 31 March 2011
In this stock exchange release Vacon is publishing information included in the interim report that has a significant impact on the value of securities. The full interim report is in the appendix to this release and can be downloaded from the company's website in Finnish at www.vacon.fi and in English at www.vacon.com.
January-March summary:
- Order intake totalled MEUR 100.7, an increase of 38.4 % from the corresponding period in the previous year (MEUR 72.8).
- Revenues totalled MEUR 95.0, growth of 45.5 % (MEUR 65.3).
- Operating profit was MEUR 8.9, or 9.3 % of revenues, an increase of 91.0 % (MEUR 4.6 and 7.0 %).
- Operating cash flow was MEUR -6.4 (MEUR 1.9).
- Earnings per share were EUR 0.35 (0.17), growth of 106.0 %.
- Vacon Plc has agreed to sell The Switch Engineering Oy shares. The selling of the shares is expected to raise Vacon Plc's earnings per share by an estimated EUR 1.4 in 2011. The transaction requires the approval of competition authorities and, deviating from what was announced earlier, it is estimated that the sale will be completed in the third quarter.
January-March result
| MEUR | 1-3/2011 | 1-3/2010 | Change, % | 1-12/2010 |
|---|---|---|---|---|
| Revenues | 95.0 | 65.3 | 45.5 | 338.0 |
| EBITDA | 11.7 | 7.3 | 60.1 | 39.7 |
| Depreciation – tangibles | -1.2 | -1.2 | 0.8 | -5.0 |
| Amortization – intangibles | -1,6 | -1.5 | -10.9 | -6.1 |
| Operating profit | 8.9 | 4.6 | 91.0 | 28.6 |
| Operating profit – percentage of revenues | 9.3 | 7.0 | 8.5 | |
| Profit before tax | 8.5 | 4.4 | 94.1 | 27.5 |
| Profit for the period | 5.6 | 2.8 | 101.3 | 19.1 |
General review
Demand for AC drives remained strong in the first quarter of 2011 and Vacon raised its market share in all geographical regions. Vacon's revenues increased 45.5 %, to EUR 95.0 million (EUR 65.3 million). Demand for AC drives rose in all industrial sectors. The company's profitability also improved encouragingly. Operating profit rose to EUR 8.9 million, or 9.3 % of revenues (EUR 4.6 million and 7.0 %).
VACON DRIVEN BY DRIVES
The shortage of components that delayed deliveries in 2010 eased in the first quarter of the year and reduced the delivery times for Vacon's products. The devastating tsunami in Japan did not have an impact on the company's operations during the review period.
Vacon Plc and the other shareholders in The Switch Engineering Oy signed an agreement on 14 March 2011 with the American Superconductor Corporation, transferring all the shares in The Switch Engineering to American Superconductor Corporation. The transaction requires the approval of competition authorities and, deviating from what was announced earlier, it is estimated that the sale will be completed in the third quarter. The capital gains from selling The Switch shares are expected to raise Vacon Plc's earnings per share by an estimated EUR 1.4 in 2011.
Vacon estimates that the AC drive market will grow 6-10 % in 2011. Investments to improve energy efficiency and in renewable energy production will support strong growth in all market areas. Market growth is expected to be strongest in the Asia Pacific region. Steady growth is also forecast for EMEA and North America. Demand for Vacon's products is expected to rise in all industrial sectors. The financial problems experienced in certain European countries cause uncertainty about economic growth in the euro area. The impact of the devastating tsunami in Japan may also weaken the availability of electronic components for Vacon's business operation in 2011.
Market guidelines for 2011
Vacon estimates that its 2011 revenues will increase 10 % – 20 % and the operating profit margin is expected to rise from 2010. Earnings per share are expected to improve considerably from 2010.
Financial reports in 2011
Vacon is publishing two further interim reports in 2011 as follows:
- January-June: 3 August 2011
- January-September: 25 October 2011
Formal statement
This release contains certain forward-looking statements that reflect the current views of the company's management. Due to the nature of these statements, they contain risks and uncertainties and are subject to changes in the general economic situation and in the company's business sector.
Vacon in brief
Vacon's operations are driven by a passion to develop, manufacture and sell the best AC drives in the world — and nothing else. AC drives are used to control electric motors and in renewable energy generation. Vacon has R&D and production units in Finland, the USA, China and Italy, and sales offices in 27 countries. In 2010 Vacon had revenues of EUR 338.0 million and globally employed 1300 people. The shares of Vacon Plc (VAC1V) are quoted on the main list of the Helsinki stock exchange. Driven by Drives, www.vacon.fi
Vantaa, 27 March 2011
VACON PLC
Board of Directors
VACON DRIVEN BY DRIVES
For more information please contact:
Mr Vesa Laisi, President and CEO, phone: +358 (0)40 8371 510
Ms Eriikka Söderström, CFO and Vice President, Finance & Control, phone: +358 (0)40 8371 445
Conference for media and analysts
Vacon will hold a briefing for analysts and the media at 11.30 am on 27 April 2011 at the Scandic Simonkenttä Hotel, Simonkatu 9, 00100 Helsinki. The briefing will be in Finnish.
Dial-in conference for investors and investment analysts
A dial-in conference in English for investors and investment analysts will be held at 3.00 pm (EET) on 27 April 2011. President and CEO Vesa Laisi and Eriikka Söderström, CFO and Vice President, Finance and Control, will participate in the conference. Please call +44 (0)20 7136 2053 and request to be connected to the Vacon call (Confirmation code 6742315). A recording of the conference will be available for seven days at +44 (0)20 7111 1244 and access code 6742315#.
- Webcast URL: http://www.media-server.com/m/em/xcdd6e9s/r/1
VACON DRIVEN BY DRIVES
Vacon Plc, Interim Report 1 January – 31 March 2011
Business environment and business development
The positive upswing in the market that began in 2010 continued in the first quarter of 2011. Demand for AC drives has been boosted by the strong growth in the global economy and by investment in raising energy efficiency and in renewable energy generation. Rising energy prices around the world also play a part in bolstering demand for Vacon's products worldwide. Demand moved in a positive direction in all industrial sectors. At the same time, the first signs could be seen of demand picking up for high-power products, in the marine industry for example.
Market growth was still strongest in the Asia Pacific region. In North America and EMEA (Europe, Middle East and Africa) growth was more moderate. Germany experienced the strongest growth in Europe. Vacon raised its market share in all geographical regions. Revenues increased 45.5% to EUR 95.0 (65.3) million.
The company's profitability also developed positively. Operating profit rose to EUR 8.9 million, or 9.3% of revenues (EUR 4.6 million and 7.0%).
The shortage of components that slowed down deliveries in 2010 eased in the first quarter of the year and Vacon's delivery capability for its products improved. The destructive tsunami in Japan did not affect the company's business operations during the review period.
Vacon Plc and the other shareholders in The Switch Engineering Oy signed an agreement on 14 March 2011 with the American Superconductor Corporation, transferring all the shares in The Switch Engineering to American Superconductor Corporation. The transaction requires the approval of competition authorities and, deviating from what was announced earlier, it is estimated that the sale will be completed in the third quarter. The capital gains from selling The Switch shares are expected to raise Vacon Plc's earnings per share by an estimated EUR 1.4 in 2011. Vacon announced the sale of The Switch Engineering Oy shares in a stock exchange release on 14 March 2011.
Order intake and order book
Orders received increased 38.4% during the first quarter of 2011 from the corresponding period in the previous year. The order intake totalled EUR 100.7 (72.8) million. During the first quarter the volume of orders increased from the corresponding period in the previous year in all geographical regions: in Asia 89.0%, in Europe 30.2% and in North and South America 28.4%. The order book rose by EUR 5.7 million from the beginning of the year. The volume of orders increased in all industrial sectors.
Revenues
During the first quarter of 2011 revenues reached EUR 95.0 (65.3) million. Revenues rose 45.5% from the corresponding period in the previous year. This was a decline of 8.0% from the previous quarter. Fourth quarter revenues in 2010 were exceptionally high thanks to the excellent order intake in the third quarter.
VACON DRIVEN BY DRIVES
Operating profit and result
Operating profit in the January-March period was EUR 8.9 million, or 9.3 % of revenues, compared to EUR 4.6 million and 7.0 % of revenues in the corresponding period in the previous year. The operating profit percentage in the previous quarter was 8.8 %. The increase in the operating profit was boosted by the clear growth in revenues.
The company has continued to invest in growth by recruiting new personnel especially for sales organization. This has increased the company's fixed costs. Earnings per share were EUR 0.35, an increase of EUR 0.18 from the previous year.
Balance sheet and cash flow
The balance sheet remained strong but the operating cash flow decreased in the first quarter and was EUR -6.4 million, a decline of EUR 8.3 million from the corresponding period in the previous year.
Trade receivables increased in particular due to the first solar energy deliveries made towards the end of 2010, since these had long payment schedules. The company built up its stocks of raw materials early in the year to safeguard its delivery capabilities. The sales companies also had larger than normal stocks of finished products at the start of the year.
The balance sheet total stood at EUR 250.7 (155.1) million. The equity ratio was 44.2 % (48.4 %). The consolidated operating cash flow was EUR -6.4 (1.9) million. The decline in the cash flow is because of the increase in committed working capital. The Group's equity structure and liquidity remained strong. Interest-bearing net debt at the end of the period totalled EUR 20.7 (3.0) million, and gearing was 19.1 % (4.0 %).
VACON DRIVEN BY DRIVES
Market position
Vacon Group revenues by market area were as follows:
| MEUR | 1-3/2011 | % | 1-3/2010 | % | 1-12/2010 | % |
|---|---|---|---|---|---|---|
| Europe, Middle East, Africa | 66.1 | 69.6 | 44.9 | 68.8 | 227.3 | 67.2 |
| North and South America | 17.7 | 18.6 | 11.8 | 18.1 | 60.3 | 17.8 |
| Asia and Pacific | 11.2 | 11.8 | 8.6 | 13.2 | 50.5 | 14.9 |
| Total | 95.0 | 100.0 | 65.3 | 100.0 | 338.0 | 100.0 |
Developments in Vacon's revenues during the January-March period, compared to the corresponding period in the previous year, by market region were as follows: Europe, Middle East and Africa in total +47.1%, North and South America +49.8%, and Asia and Pacific +30.9%. Vacon reports its regional sales based on the invoicing addresses, not the final location of the products.
Breakdown of Vacon Group revenues by distribution channel:
| Milj. euroa | 1-3/ 2011 | % | 1-3/ 2010 | % | 1-12/ 2010 | % |
|---|---|---|---|---|---|---|
| Direct sales | 8.4 | 8.8 | 7.0 | 10.7 | 27.1 | 8.0 |
| Distributors | 13.9 | 14.7 | 9.1 | 13.9 | 50.4 | 14.9 |
| OEM | 23.6 | 24.8 | 17.9 | 27.5 | 87.7 | 26.0 |
| Brand label customers | 18.8 | 19.8 | 13.2 | 20.2 | 68.1 | 20.2 |
| System integrators | 30.3 | 31.9 | 18.1 | 27.7 | 104.7 | 31.0 |
| Total | 95.0 | 100.0 | 65.3 | 100.0 | 338.0 | 100.0 |
Vacon's sales by distribution channel rose in the January-March period from the previous year as follows: direct sales +19.6%, OEM +31.5%, distributors +52.9%, brand label customers +42.7% and system integrators +67.7%.
Research and development
R&D expenditure in the first quarter of 2011 totalled EUR 5.9 (4.5) million, and EUR 1.7 (1.0) million of this was capitalized as development costs. R&D costs accounted for 6.2% of Group revenues (6.8%).
Vacon continued to invest heavily in developing AC drive technology used to control electric motors and in wind and solar power plants. During the review period the company expanded its offering of new generation products on the market.
VACON DRIVEN BY DRIVES
Investments
Gross investments by the Group totalled EUR 5.1 (2.8) million. Expenditure focused mainly on increasing and maintaining production capacity and on standardizing and developing information systems.
Organization and personnel
Vacon's human resources policy is based on the company's values. Skills and expertise are managed in accordance with the company's strategy.
The number of Vacon personnel increased by 55 since the beginning of the year. At the end of March the Group employed 1,394 (1,339) people, of whom 708 (687) were in Finland and 686 (652) in other countries.
The table below shows the average number of Vacon employees during the year:
| 1-3/2011 | 1-3/2010 | 1-12/2010 | |
|---|---|---|---|
| Office personnel | 888 | 778 | 808 |
| Factory personnel | 491 | 454 | 493 |
| TOTAL | 1,379 | 1,232 | 1,301 |
VACON DRIVEN BY DRIVES
Shares and shareholders
Vacon had a market capitalization at the end of March of EUR 661.8 million (EUR 593.4 million at the end of December). The closing share price on 31 March 2011 was EUR 43.50. The lowest share price during the January-March period was EUR 37.65 and the highest EUR 44.58.
A total of 835,747 shares (5.5 % of the share stock) were traded on the stock exchange in the January-March period, in monetary terms EUR 34.4 million. According to the shareholder register updated on 31 March 2011, Vacon had 4,701 registered shareholders. Shares that were nominee registered and in foreign ownership amounted to 34.2 % (34.7 %) of the share stock.
Vacon's main shareholders on 31 March 2011:
| Number of shares | Holding, % | |
|---|---|---|
| Ahlström Capital Oy Group | 3,061,215 | 20.0 % |
| Ilmarinen Mutual Pension Insurance Company | 699,877 | 4.6 % |
| Tapiola Mutual Pension Insurance Company | 584,500 | 3.8 % |
| Vaasa Engineering Oy | 389,514 | 2.5 % |
| Koskinen Jari | 362,403 | 2.4 % |
| Ehrnrooth Martti | 325,070 | 2.1 % |
| Holma Mauri | 290,288 | 1.9 % |
| Tapiola Group companies | 245,300 | 1.6 % |
| Handelsbanken Nordic Selective Fund | 146,000 | 1.0 % |
| Autio Heikki | 137,060 | 0.9 % |
| Nominee registered and in foreign ownership | 5,236,633 | 34.2 % |
| Vacon Plc own shares | 80,565 | 0.5 % |
| Others | 3,736,575 | 24.4 % |
| Total | 15,295,000 | 100.0 % |
| Shares outstanding | 15,214,435 |
On 31 March 2011 members of Vacon's Board of Directors, the President and CEO, and the Deputy to the CEO held directly a total of 22,954 shares, or 0.2 % of Vacon's share stock.
Own shares
On 31 March 2011 Vacon Plc held a total of 80,565 of its own shares, which it had acquired at an average price of EUR 21.48. This is 0.5 % of the share capital and voting rights, so it has no significant impact on the distribution of ownership or voting rights in the company.
Annual General Meeting
Vacon Plc's Annual General Meeting of Vacon Plc was held in Vaasa on 22 March 2011. The AGM approved the 2010 financial statements and discharged the Board members and Managing Director from liability for the 2010 fiscal year. The AGM adopted the proposal of the Board of Directors to pay a dividend of EUR 1.00 per share. The AGM adopted the proposals by the Board of Directors to authorize the Board to decide on purchasing the company's own shares and on issuing shares.
VACON DRIVEN BY DRIVES
The AGM confirmed that the Board of Directors would have seven (7) members. Pekka Ahlqvist, Jari Eklund, Jan Inborr, Juha Kytölä, Panu Routila, Mika Vehviläinen and Riitta Viitala were re-elected as Board members. Jan Inborr was re-elected chairman and Mika Vehviläinen vice-chairman of the Board of Directors at the Board's constituency meeting.
The AGM decided that members of the Board of Directors would be paid a basic fee, which is EUR 1,250 a month, and a supplementary fee, which is a maximum of EUR 2,500 a month. The AGM decided that the chairman of the Board would be paid double the basic and supplementary fees paid to ordinary Board members.
The AGM confirmed that the company would have one (1) auditor. The AGM elected Pricewaterhouse-Coopers Oy as the company's auditor and this company has announced that Markku Katajisto, APA, will be the principal auditor.
The AGM adopted the Board proposal to authorize the Board to decide on purchasing the company's own shares. The Board's proposal is explained in the stock exchange release of 17 February 2011.
Risks and uncertainties in the near future
Typical risks to which Vacon's business operations are exposed relate to uncertainty in demand and intensifying competition on price, and to losing customers, to goodwill, the availability of raw material and components, and fluctuations in the currency values. In the short term the most acute risk concerns the availability of raw materials and components, which has posed challenges in the company's production and slowed down product deliveries.
Vacon has reviewed the impact of the destructive tsunami in Japan on the company's business. The natural disaster in Japan has had a major impact on the country's component production, but Vacon is not significantly dependent on components manufactured in Japan. However, Japan is a major supplier of electronic components and disruptions in its manufacturing will affect the global market for electronic components, for example by weakening availability and raising prices. For this reason the catastrophe in Japan may also have an impact on Vacon's business operations in 2011. At the moment it is difficult to estimate how big an impact it will have.
Vacon Plc and the other shareholders in The Switch Engineering Oy signed an agreement on 14 March 2011 with the American Superconductor Corporation, transferring all the shares in The Switch Engineering to American Superconductor Corporation. The transaction requires the approval of competition authorities and, deviating from what was announced earlier, it is estimated that the sale will be completed in the third quarter.
The order book for Vacon's AC drives used to control electric motors has always been short term in nature, so there are no major risks connected with the timing of deliveries or their cancellation. Products supplied for renewable power generation account for a constantly increasing proportion of Vacon's revenues. This business typically has longer delivery and payment schedules, which increases the risks relating to customer credit rating and of orders being cancelled.
10
VACON DRIVEN BY DRIVES
Sales of equipment for renewable energy generation is for Vacon based on projects, so it will cause greater seasonal fluctuations in business volumes than what the company is used to. Power generation using renewable energy sources depends largely on state funding, so this market segment contains a political risk.
Vacon has thousands of customers worldwide. The ten largest customers account for less than half of Vacon's revenues. Vacon is continuously assessing the creditworthiness of its customers and their ability to pay their debts.
Vacon is able to adjust its production capacity to market demand. The company estimates that its cash funds and available credit facilities are sufficient to ensure its liquidity.
Vacon's balance sheet includes goodwill of EUR 8.9 million, most of which is related to the company acquisition at the beginning of 2008. The company tests goodwill for impairment annually. The availability and quality of raw materials and components and changes in their prices can affect the profitability and scale of the company's business. Purchase agreements for raw materials and components are mainly annual agreements, which contain price and exchange rate clauses for changes in the global market prices of raw and other materials. Changes in the global economic situation may harm the business opportunities for some component suppliers.
Some of the most significant financial risks affecting the result are foreign exchange risks. Exchange rate fluctuations may have an impact on business, although the international expansion of business operations reduces the relative importance of individual currencies. The biggest exchange rate risks against the euro relate to the US dollar and the Chinese renminbi. The Group applies hedge accounting, in accordance with IAS 39, to hedge the operations currency position in its cash flow.
Legal proceedings are in progress at the subsidiary in China. The Chinese prosecuting authority is demanding EUR 3.2 million from Vacon as compensation for unpaid customs duties, and a provision for this was recorded in the result for the final quarter of 2010. The court case began in March 2011 and the court's decision is expected in the second quarter of the year.
Prospects for 2011
Vacon estimates that the AC drive market will grow 6-10 % in 2011. Investments to improve energy efficiency and in renewable energy production will support strong growth in all market areas. Market growth is expected to be strongest in the Asia Pacific region. Steady growth is also forecast for EMEA and North America. Demand for Vacon's products is expected to rise in all industrial sectors. The financial problems experienced in certain European countries cause uncertainty about economic growth in the euro area. The impact of the devastating tsunami in Japan may also weaken the availability of electronic components for Vacon's business operation in 2011.
Market guidelines for 2011
Vacon estimates that revenues in 2011 will increase 10 % – 20 % and the operating profit percentage will rise from the 2010 figures. Earnings per share are expected to improve considerably from 2010.
VACON DRIVEN BY DRIVES
Accounting principles
This interim report has been prepared in accordance with IFRS (International Financial Reporting Standards) standard IAS 34 on Interim Financial Reporting. Vacon has prepared this interim report applying the same accounting principles as those described in detail in its 2010 consolidated financial statements. The interim report is unaudited.
Consolidated income statement, IFRS, MEUR
| 1-3/2011 | 1-3/2010 | 1-12/2010 | |
|---|---|---|---|
| Revenues | 95.5 | 65.3 | 338.0 |
| Other operating income | 0.0 | 0.1 | 0.4 |
| Change in inventories of finished goods and work in progress | 3.9 | 0.3 | 6.6 |
| Materials and services | -54.2 | -33.1 | -186.7 |
| Employee benefit costs | -17.9 | -13.9 | -64.9 |
| Other operating costs | -15.2 | -11.5 | -53.9 |
| Depreciation | -1.2 | -1.2 | -5.0 |
| Amortization | -1.6 | -1.5 | -6.1 |
| Operating profit | 8.9 | 4.6 | 28.6 |
| Financial income and expenses | -0.3 | -0.3 | -1.1 |
| Profit before taxes | 8.5 | 4.4 | 27.5 |
| Income taxes | -3.0 | -1.6 | -8.5 |
| Profit for the period | 5.6 | 2.8 | 19.1 |
| Attributable to: | |||
| Equity holders of the parent | 5.4 | 2.6 | 18.5 |
| Non-controlling interests | 0.2 | 0.2 | 0.5 |
| Earnings per share, euro | 0.35 | 0.17 | 1.22 |
| Earnings per share diluted, euro | 0.35 | 0.17 | 1.22 |
Consolidated statement of comprehensive income, MEUR
| 1-3/2011 | 1-3/2010 | 1-12/2010 | |
|---|---|---|---|
| Profit for the period | 5.6 | 2.8 | 19.1 |
| Other comprehensive income | |||
| Cash flow hedging | 0.2 | 0.0 | 0.0 |
| Available for sale financial assets | 27.0*) | 0.0 | 0.0 |
| Translation differences | -0.5 | 0.8 | 1.5 |
| Total comprehensive income | 32.3 | 3.6 | 20.5 |
| Attributable to: | |||
| Shareholders of parent company | 32.0 | 3.4 | 19.9 |
| Non-controlling interest | 0.2 | 0.2 | 0.5 |
*) Holding of The Switch shares to fair value
VACON DRIVEN BY DRIVES
Consolidated balance sheet, MEUR
| 31.3.2011 | 31.3.2010 | 31.12.2010 | |
|---|---|---|---|
| ASSETS | |||
| Goodwill | 8.9 | 8.4 | 9.1 |
| Development costs | 13.8 | 9.9 | 12.6 |
| Other intangible assets | 11.1 | 13.5 | 11.1 |
| Tangible assets | 21.1 | 18.5 | 20.7 |
| Loans receivable and other receivables | 0.0 | 0.2 | 0.0 |
| Deferred tax assets | 5.3 | 3.5 | 4.8 |
| Other financial assets | 1.8 | 5.4 | 3.8 |
| Total non-current assets | 62.0 | 59.4 | 62.2 |
| Inventories | 35.2 | 21.8 | 31.9 |
| Trade and other receivables | 101.4 | 57.7 | 90.8 |
| Available for sale financial assets | 30.0*1 | 0.0 | 0.0 |
| Cash and cash equivalents | 22.1 | 16.3 | 18.4 |
| Total current assets | 188.8 | 95.8 | 141.1 |
| Total assets | 250.7 | 155.1 | 203.3 |
| EQUITY AND LIABILITIES | |||
| Share capital | 3.1 | 3.1 | 3.1 |
| Share premium reserve | 5.0 | 5.0 | 5.0 |
| Other reserves | 0.1 | 0.1 | 0.1 |
| Own shares | -2.6 | -2.6 | -2.6 |
| Revaluation reserve | 27.1*1 | 0.0 | -0.1 |
| Retained earnings | 74.3 | 67.3 | 84.4 |
| Non-controlling interests | 1.7 | 1.4 | 1.6 |
| Total equity | 108.5 | 74.1 | 91.3 |
| Deferred tax liabilities | 6.6 | 5.0 | 5.3 |
| Employee benefits | 1.7 | 1.5 | 1.6 |
| Interest-bearing liabilities | 9.3 | 12.2 | 9.9 |
| Other liabilities | 0.2 | 0.0 | 0.2 |
| Total non-current liabilities | 17.8 | 18.7 | 17.0 |
| Trade and other payables | 75.0 | 52.1 | 62.4 |
| Income tax liabilities | 8.3 | 1.2 | 6.5 |
| Provisions | 7.7 | 1.9 | 7.9 |
| Interest-bearing liabilities | 33.5 | 7.1 | 18.3 |
| Total current liabilities | 124.4 | 62.3 | 95.1 |
| Total equity and liabilities | 250.7 | 155.1 | 203.3 |
*1 Holding of The Switch shares to fair value, 27 MEUR
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DRIVEN BY DRIVES
Q1 2010 Consolidated statement of changes in equity, IFRS (MEUR)
Attributable to equity holders of the parent
| Share capital | Share premium reserve | Other reserves | Own shares | Revaluation reserve | Retained earnings | Total | Non-controlling interests | Total equity | |
|---|---|---|---|---|---|---|---|---|---|
| Equity Jan 1, 2010 | 3.1 | 5.0 | 0.1 | -2.6 | 0.0 | 74.4 | 79.8 | 1.5 | 81.3 |
| Other changes | 0.1 | 0.1 | 0.0 | 0.2 | |||||
| Profit for the period | 2.6 | 2.6 | 0.2 | 2.8 | |||||
| Other total comprehensive income: | |||||||||
| Cash flow hedging | 0.0 | 0.0 | 0.0 | ||||||
| Translation differences | 0.8 | 0.8 | 0.8 | ||||||
| Total comprehensive income for the period | 0.0 | 3.4 | 3.4 | 0.2 | 3.6 | ||||
| Dividends paid | -10.7 | -10.7 | -0.3 | -10.9 | |||||
| Equity Mar 31, 2010 | 3.1 | 5.0 | 0.1 | -2.6 | 0.0 | 67.3 | 72.7 | 1.4 | 74.1 |
Q1 2011 Consolidated statement of changes in equity, IFRS (MEUR)
Attributable to equity holders of the parent
| Share capital | Share premium reserve | Retained earnings | Own shares | Revaluation reserve | Retained earnings | Total | Non-controlling interests | Total equity | |
|---|---|---|---|---|---|---|---|---|---|
| Equity Jan 1, 2011 | 3.1 | 5.0 | 0.1 | -2.6 | -0.1 | 84.4 | 89.7 | 1.6 | 91.3 |
| Profit for the period | 5.4 | 5.4 | 0.2 | 5.6 | |||||
| Other total comprehensive income: | |||||||||
| Cash flow hedging | 0.2 | 0.2 | 0.2 | ||||||
| Available for sale financial assets | 27.0 | 27,0 | 27.0 | ||||||
| Translation differences | -0.5 | -0.5 | -0.5 | ||||||
| Total comprehensive income for the period | 27.2 | 4.8 | 32.0 | 0.2 | 32.3 | ||||
| Share bonuses | 0.3 | 0.3 | 0.3 | ||||||
| Dividends paid | -15.2 | -15.2 | -0.1 | -15.3 | |||||
| Equity Mar 31, 2011 | 3.1 | 5.0 | 0.1 | -2.6 | 27.1 | 74.3 | 106.8 | 1.7 | 108.5 |
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DRIVEN BY DRIVES
Consolidated cash flow statement, IFRS, MEUR
| 31.3.2011 | 31.3.2010 | 31.12.2010 | |
|---|---|---|---|
| Profit for the period | 5.6 | 2.8 | 19.1 |
| Depreciation | 2.8 | 2.6 | 11.1 |
| Financial income and expenses | 0.3 | 0.3 | 1.1 |
| Taxes | 3.0 | 1.6 | 8.5 |
| Other adjustments | 0.5 | -0.1 | -0.2 |
| Change in working capital | -16.8 | -3.2 | -17.2 |
| Cash flow from financial items and tax | -1.8 | -2.2 | -6.3 |
| Cash flow from operating activities | -6.4 | 1.9 | 15.9 |
| Purchase of subsidiary | 0.0 | 0.0 | -0.7 |
| Investments in tangible and intangible assets | -5.1 | -2.8 | -13.7 |
| Proceeds from disposal of tangible and intangible assets | 0.0 | 0.0 | 0.0 |
| Other investments | 0.1 | 0.2 | 0.0 |
| Payment of loans receivables | 0.0 | 0.0 | 0.8 |
| Proceeds from disposal of other investments | 0.0 | 0.0 | 0.3 |
| Cash flow from investing activities | -5.0 | -2.6 | -13.4 |
| Proceeds from long-term borrowings | 0.1 | 0.0 | 0.2 |
| Repayment of long-term loans | 0.0 | -0.8 | -3.0 |
| Proceeds from short-term borrowings | 15.5 | 0.5 | 12.1 |
| Repayment of short-term loans | 0.0 | 0.0 | -0.2 |
| Dividends paid | -0.1 | -0.3 | -11.2 |
| Cash flow from financing activities | 15.5 | -0.6 | -2.2 |
| Change in liquid funds | 4.1 | -1.3 | 0.4 |
| Liquid funds at start of period | 18.4 | 17.2 | 17.2 |
| Translation differences for liquid funds | -0.4 | 0.4 | 0.9 |
| Liquid funds at end of period | 22.1 | 16.3 | 18.4 |
VACON DRIVEN BY DRIVES
Segment information
Vacon has one business segment, AC drives. The figures for the business segment are identical to the figures for the whole Group. Vacon's operations are organized in the following functions: Products and Markets, Production, Research & Development, Finance and Administration, Human Resources, IT and Process Development. To ensure that the organisation is customer-oriented, operations are controlled by sales channels: distributors, systems integrators, direct sales, OEM customers and brand label customers.
Key financial indicators
Share-based indicators
| 31.3.2011 | 31.3.2010 | 31.12.2010 | |
|---|---|---|---|
| Earnings per share, EUR | 0.35 | 0.17 | 1.22 |
| Equity per share, EUR | 7.02 | 4.78 | 5.90 |
| Lowest share price, EUR | 37.65 | 24.90 | 24.90 |
| Highest share price, EUR | 44.58 | 30.20 | 39.75 |
| Share price at year end, EUR | 43.50 | 30.10 | 39.00 |
| Average trading price, EUR | 41.14 | 27.50 | 32.49 |
| Market capitalization, MEUR | 661.8 | 457.8 | 593.36 |
| Trading volume, no. of shares | 835,747 | 673,476 | 2,670,146 |
| Trading volume, % | 5.5 | 4.4 | 17.6 |
| Adjusted average number of shares during the period | 15,214,435 | 15,209,989 | 15,213,083 |
| Number of shares at end of period | 15,214,435 | 15,209,989 | 15,214,435 |
| Own shares | 80,565 | 85,011 | 80,565 |
VACON DRIVEN BY DRIVES
Key indicators showing the Group's financial performance
| 31.3.2011 | 31.3.2010 | 31.12.2010 | |
|---|---|---|---|
| Revenues, MEUR | 95.0 | 65.3 | 338.0 |
| Change in revenues, % | 45.5 | -6.7 | 24.3 |
| Operating profit, MEUR | 8.9 | 4.6 | 28.6 |
| Change in operating profit, % | 91.0 | -35.2 | 26.8 |
| Operating profit, % of revenues | 9.3 | 7.0 | 8.5 |
| Profit before tax, MEUR | 8.5 | 4.4 | 27.5 |
| Profit before tax, % of revenues | 9.0 | 6.7 | 8.1 |
| Interest-bearing net liabilities, MEUR | 20.7 | 3.0 | 9.8 |
| Gearing, % | 19.1 | 4.0 | 10.7 |
| Working capital, MEUR | 60.9 | 34.9 | 45.9 |
| Equity ratio, % | 44.2 | 48.4 | 46.0 |
| Gross capital expenditure, MEUR | 5.1 | 2.8 | 15.9 |
| Gross capital expenditure, % of revenues | 5.3 | 4.3 | 4.7 |
| R & D expenditure, MEUR | 5.9 | 4.5 | 20.8 |
| R & D expenditure, % of revenues | 6.2 | 6.8 | 6.2 |
| Number of personnel at end of period | 1,394 | 1,240 | 1 339 |
| Order book, MEUR | 57.8 | 39.4 | 52.1 |
Commitments and contingencies, MEUR
| 31.3.2011 | 31.3.2010 | 31.12.2010 | |
|---|---|---|---|
| Commitments and contingencies | 10.9 | 7.5 | 11.8 |
| Financing commitments | 0.1 | 0.2 | 0.1 |
Group quarterly performance, MEUR
| 1-3/2011 | 10-12/2010 | 7-9/2010 | 4-6/2010 | 1-3/2010 | |
|---|---|---|---|---|---|
| Revenues | 95.0 | 103.2 | 89.3 | 80.2 | 65.3 |
| Operating profit | 8.9 | 9.1 | 8.3 | 6.6 | 4.6 |
| Profit before tax | 8.5 | 9.5 | 7.3 | 6.4 | 4.4 |
VACON
DRIVEN BY DRIVES
Calculation of financial ratios
| Earnings per share = | Profit for the financial year attributable to equity holders of the parent company |
|---|---|
| Adjusted average number of shares | |
| Equity per share = | Total equity – non-controlling interests |
| Adjusted average number of shares at year end | |
| Equity ratio, % = | Total equity x 100 |
| Balance sheet total – advances received | |
| Gearing, % = | (Interest-bearing liabilities – cash, bank balances and financial assets) x 100 |
| Total equity | |
| Working capital = | Inventories + non-interest-bearing short-term receivables - Non-interest-bearing short-term liabilities |
| R & D costs = | Research and development costs recognized in income statement (incl. costs covered with subsidies) and capitalized development expenses |
| Market capitalization of share stock = | Number of shares outstanding at period end x closing share price |
| Share turnover % = | Number of shares traded during the period x 100 |
| Adjusted average number of shares |