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NACON Investor Presentation 2012
1539_rns_2012-08-01_c15b982d-a4e8-4ce6-b6ac-e1000833f490.pdf
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VACON
Vacon Interim Report Q2/2012
August 1, 2012
Vesa Laisi, President and CEO
Eriikka Söderström, CFO
Vacon Plc
VACON® DRIVEN BY DRIVES
Disclaimer
- The content of this presentation contains time-sensitive information that is accurate as of the time hereof.
- A number of forward-looking statements will be made during this presentation. Forward-looking statements are any statements that are not historical facts. These statements are based on current decisions and plans and currently known factors. They involve risks and uncertainties which may cause the actual results to materially differ from the results currently expected by Vacon.
- If any portion of this presentation is rebroadcast, retransmitted or redistributed at a later date, Vacon will not be reviewing or updating the material that is contained herein.
Vacon PPT 2
VACON® DRIVEN BY DRIVES
Outline
- Highlights in Q2/2012, Vesa Laisi, President and CEO
- Financial Report, Eriikka Söderström, CFO
- Outlook, Vesa Laisi, President and CEO
- Appendix
Vacon PPT 3
VACON® DRIVEN BY DRIVES
Highlights Q2/2012
- AC drive market grew also during the second quarter of the year.
- Demand for Vacon AC drives increased steadily in all geographical areas and industrial sectors.
- Volume of orders rose strongly.
- Revenues increased from the previous quarter while falling short of their level in the second quarter of 2011.
- Profitability also improved compared to the first quarter of 2012, but was down on the corresponding period in the previous year.
Vacon PPT 4
VACON® DRIVEN BY DRIVES
Results Q2/2012
| MEUR | Q2/2012 | Q2/2011 | Change |
|---|---|---|---|
| Order intake | 108.9 | 103.8 | 4.9 % |
| Revenues | 99.5 | 107.2 | -7.1 % |
| Operating profit | 10.2 | 11.5 | -11.0 % |
| Operating profit, % of revenues | 10.3 % | 10.7 % | |
| Net cash flow from operating activities | 1.5 | 7.2 | |
| EPS, eur | 0.46 | 0.58 | -20,1 % |
The operating profit excluding one-time items in the April-June period was EUR 9.0 million, or 9.0 % of revenues (EUR 12.0 million and 11.2 %).
Vacon PPT 5
VACON® DRIVEN BY DRIVES
Results H1/2012
| MEUR | H1/2012 | H1/2011 | Change |
|---|---|---|---|
| Order intake | 205.8 | 204.6 | 0.6 % |
| Revenues | 183.7 | 202.2 | -9.1 % |
| Operating profit | 16.6 | 20.4 | -18.5 % |
| Operating profit, % of revenues | 9.0 % | 10.1 % | |
| Net cash flow from operating activities | 19.8 | 0.8 | |
| EPS, eur | 0.74 | 0.93 | -19.7 % |
The operating profit excluding one-time items in the January-June period was EUR 13.9 million, or 7.6 % of revenues (EUR 20.9 million and 10.3 %).
Vacon PPT 6
VACON® DRIVEN BY DRIVES
Several new products to the market
- Vacon has launched several new products during the first half of 2012
- In March the company introduced upgraded versions of its VACON® NXP AC drives.
- In June Vacon launched three new products at its sales conference: the VACON® 100, VACON® 100 X and VACON® 20 X.
Vacon PPT 7
VACON® DRIVEN BY DRIVES
VACON 100 in a nutshell
- An AC drive for use in motor applications with power range from 0.75 kW to 160 kW
- Created with the sole ambition of improving every aspect of AC drive technology to give the best possible value to the customer
- Typical use is any application where efficient motor speed control is needed
- Common applications: Conveyors, Extruders, Compressors, Pumps, Fans
Vacon PPT 8
VACON® DRIVEN BY DRIVES
Vacon renewed its values
- Vacon's renewed values are: Stronger together, Trust and Respect, Taking ownership and Passion for excellence.
- The renewed values are a result of a one-year-long internal process in all Vacon companies, and they take into consideration the changing business environment.
Vacon PPT 9
VACON DRIVER
Financial Report
Eriikka Söderström,
Chief Financial Officer,
Vacon Plc
VACON® DRIVEN BY DRIVES
Revenues
Vacon PPT 11
VACON® DRIVEN BY DRIVES
Order intake and revenues 2010-Q2/2012
Vacon PPT 12
VACON® DRIVEN BY DRIVES
Order intake and order book 2010-Q2/2012
Vacon PPT 13
VACON® DRIVEN BY DRIVES
Order intake by region 2011-Q2/2012
Given percentage is actual quarter Q2 2012 compared to the corresponding period in the previous year.
Vacon PPT 14
VACON® DRIVEN BY DRIVES
Revenues by region 2011-Q2/2012
Given percentage is actual quarter Q2 2012 compared to the corresponding period in the previous year.
Vacon PPT 15
VACON® DRIVEN BY DRIVES
Revenues by sales channel 2011-Q2/2012
Given percentage is actual quarter Q2 2012 compared to the corresponding period in the previous year.
Vacon PPT 16
VACON® DRIVEN BY DRIVES
EBIT
Vacon PPT 17
VACON® DRIVEN BY DRIVES
EBIT excl. one-time items
Vacon PPT 18
VACON® DRIVEN BY DRIVES
Earnings per share
| 2008: 1,51 | 2009: 1,01 | 2010: 1,22 | 2011: 1,10 | 2012: 0,74 | |
|---|---|---|---|---|---|
| Q4 | 0,32 | 0,19 | 0,46 | -0,18 | |
| Q3 | 0,37 | 0,19 | 0,31 | 0,36 | |
| Q2 | 0,48 | 0,35 | 0,27 | 0,58 | 0,46 |
| Q1 | 0,34 | 0,29 | 0,17 | 0,35 | 0,28 |
Vacon PPT 19
VACON® DRIVEN BY DRIVES
Revenues and EBIT-%
Vacon PPT 20
VACON® DRIVEN BY DRIVES
Revenues and EBIT-% excl. one-time items
Vacon PPT 21
VACON® DRIVEN BY DRIVES
Research and development costs
| Q4 | 4,3 | 4,6 | 7,2 | 6,8 | |
|---|---|---|---|---|---|
| Q3 | 4,3 | 4,0 | 4,3 | 6,0 | |
| Q2 | 4,3 | 4,6 | 4,9 | 6,4 | 6,1 |
| Q1 | 4,1 | 4,4 | 4,5 | 5,9 | 5,9 |
| % of revenues | 5,8 % | 6,5 % | 6,2 % | 6,6 % | 6,5 % |
Vacon PPT
VACON® DRIVEN BY DRIVES
Net Cash Flow from operating activities
Vacon PPT 23
VACON® DRIVEN BY DRIVES
Working capital
| MEUR | 30.6.2012 | 31.12.2011 | 31.12.2010 |
|---|---|---|---|
| Inventories | 28.3 | 28.2 | 31.9 |
| Non-interest bearing receivables | 85.9 | 80.9 | 90.8 |
| Non-interest bearing liabilities | 70.8 | 64.0 | 76.7 |
| Working capital | 43.4 | 45.1 | 45.9 |
| Working capital of rolling revenues, % | 12.0 | 11.8 | 13.6 |
Vacon PPT
VACON® DRIVEN BY DRIVES
Working capital development
Inventories
Non-interest bearing liabilities
Non-interest bearing receivables
wc of rolling revenues, %
Vacon PPT 25
VACON® DRIVEN BY DRIVES
Key balance sheet ratios
Vacon PPT 26
VAGON
DRIVEN
Outlook
Vesa Laisi,
President and CEO,
Vacon Plc
VACON® DRIVEN BY DRIVES
Strategy
VACON®
DRIVEN BY DRIVES
The Goal 2014
| Profitable Growth | 500 MEUR | EBIT > 14 % | ROE > 30 % |
|---|---|---|---|
Strategic Choices
| 100 % focus on AC drives | Product leadership | Multi-channel sales | Global presence and transnational operations |
|---|---|---|---|
Strategic Competences
| AC drives know-how | Common product platform design & product portfolio management | Customer relationship management | Mass customization, demand flow technology and global sourcing | Global ICT infrastructure and applications |
|---|---|---|---|---|
Vacon PPT 28
VACON DRIVEN BY DRIVES
Market Outlook
- Vacon considers that there are still uncertainties relating to general growth prospects in the economy, and these may affect demand for AC drives in Europe and possibly globally as well.
- However, Vacon expects demand for products to control electric motors to remain at a good level in the second half of 2012.
- Vacon estimates that the order intake of products for wind power generation will improve slightly in the second half of 2012 but the share of renewable energy of Vacon's revenues will stay clearly below its level of 2011 (13 % of revenues in 2011).
Vacon PPT 29
VACON® DRIVEN BY DRIVES
Market Guidelines
- Vacon estimates that its revenues will increase and the operating profit percentage excluding one-time items will improve from 2011.
- In 2011 revenues were EUR 380.9 million and the operating profit percentage excluding one-time items was 9.1 %.
| ACT 2011 | FC 2012 | |
|---|---|---|
| Revenues, MEUR | 380.9 | >380.9 |
| EBIT margin, % | 9.1 % | > 9.1 % |
Vacon PPT 30
VACON® DRIVEN BY DRIVES
Risks and uncertainties in the near future
-
One of Vacon’s solar energy customers is still arranging financing to pay a substantial overdue debt. Vacon reversed EUR 2.7 million of the provision it had made for the trade receivable after it managed to obtain EUR 1.4 million of the receivable during the first quarter of 2012 and EUR 1.2 million in the second quarter. The company is continuing to take steps to safeguard and obtain the outstanding amount of the receivable, but is still retaining part of the provision in case of a credit loss.
-
The court proceedings relating to the customs procedures followed by Vacon’s subsidiary in China continue in the higher court, since two of the parties appealed against the ruling given by the lower court in December 2011. It is possible that the sentence imposed on Vacon may also change in the higher court, so some uncertainty still remains in this matter. Vacon made a provision in December 2011 against the current court proceedings.
-
The parent company has tax proceedings in progress relating to a tax inspection of its transfer pricing in 2006 – 2008.
Vacon PPT 31
VACON® DRIVEN BY DRIVES
Major shareholders June 30, 2012
Others 25.4 %
Nominee registered and in foreign ownership 33.3 % (incl. AC Invest Three B.V. 53.3 %)
AC Invest Three B.V. 20.0 %
Ilmarinen Mutual Pension Insurance Company 5.3 %
Tapiola Mutual Pension Insurance Company 3.8 %
Koskinen Jari 2.4 %
Vaasa Engineering 2.4 %
Ehrnrooth Martti 2.1 %
Holma Mauri 1.8 %
OP-Suomi Pienyhtiöt Investment Fund 1.1 %
Tapiola Group Companies 1.1 %
Fondica Nordic Micro Cap 0.9 %
Own shares 0.2 %
Vacon PPT
VACON DRIVEN BY DRIVES
Contacts
- Vesa Laisi, President and CEO
+358 40 8371 510, e-mail: [email protected] - Eriikka Söderström, CFO and Vice President, Finance & Control
+358 40 8371 445, e-mail: [email protected] - Sebastian Linko, Director, Corporate Communications and IR
+358 40 8371 634, e-mail: [email protected]
Vacon PPT 33
VAGON
DRIVEN