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NACON Interim / Quarterly Report 2012
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Interim / Quarterly Report
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VAGON
DRIVEN BY DRIVES
INTERIM REPORT
JANUARY - JUNE 2012
VACON DRIVEN BY DRIVES
Vacon Plc, Stock Exchange Release, 1 August 2012 at 9.30 am
Vacon Plc Interim Report 1 January – 30 June 2012
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.
April-June summary:
- Order intake totalled MEUR 108.9 (MEUR 103.8), an increase of 4.9 % from the corresponding period in the previous year.
- Revenues totalled MEUR 99.5 (MEUR 107.2), a decline of 7.1 %.
- Operating profit was MEUR 10.2, or 10.3 % of revenues, a decline of 11.0 % (MEUR 11.5 and 10.7 %).
- Net cash flow from operating activities was MEUR 1.5 (MEUR 7.2).
- Earnings per share were EUR 0.46 (EUR 0.58), a decline of 20.1 %.
January-June summary:
- Order intake totalled MEUR 205.8 (MEUR 204.6), an increase of 0.6 % from the corresponding period in the previous year.
- Revenues totalled MEUR 183.7 (MEUR 202.2), a decline of 9.1 %.
- Operating profit was MEUR 16.6, or 9.0 % of revenues, a decline of 18.5 % (MEUR 20.4 and 10.1 %).
- Net cash flow from operating activities was MEUR 19.8 (MEUR 0.8).
- Earnings per share were EUR 0.74 (0.93), down 19.7 %.
VACON DRIVEN BY DRIVES
Key indicators
| MEUR | 4-6/2012 | 4-6/2011 | Change, % |
|---|---|---|---|
| Order intake | 108.9 | 103.8 | 4.9 % |
| Revenues | 99.5 | 107.2 | -7.1 % |
| Operating profit | 10.2 | 11.5 | -11.0 % |
| % of revenues | 10.3 % | 10.7 % | |
| Operating profit excluding one-time items | 9.0 | 12.0 | -25.1 % |
| % of revenues | 9.0 % | 11.2 % | |
| Profit before taxes | 10.2 | 12.0 | |
| MEUR | 1-6/2012 | 1-6/2011 | Change, % |
| --- | --- | --- | --- |
| Order intake | 205.8 | 204.6 | 0.6 % |
| Order book | 58.7 | 54.5 | 7.6 % |
| Revenues | 183.7 | 202.2 | -9.1 % |
| Operating profit | 16.6 | 20.4 | -18.5 % |
| % of revenues | 9.0 % | 10.1 % | |
| Operating profit excluding one-time items | 13.9 | 20.9 | |
| % of revenues | 7.6 % | 10.3 % | |
| Profit before taxes | 16.3 | 20.5 | |
| Net cash flow from operating activities | 19.8 | 0.8 | |
| Earnings per share, EUR | 0.74 | 0.93 | |
| Interest-bearing net liabilities | 12.9 | 31.5 | |
| Gearing, % | 13.5 % | 26.8 % | |
| Gross capital expenditure | 6.6 | 10.1 | -35.1 % |
General review
According to Vacon's assessment, the AC drive market grew also during the second quarter of the year. Demand for AC drives to control electric motors increased steadily in all geographical areas and industrial sectors.
Orders received by Vacon increased in the April-June period compared to the second quarter of 2011 and to the first quarter of 2012. Orders received in April-June totalled EUR 108.9 (103.8) million. Orders received in the second quarter include a EUR 7 million project order from a marine industry customer that will be delivered during the second half of 2012 and during 2013. Orders in the first half of the year totalled EUR 205.8 (204.6) million.
VACON DRIVEN BY DRIVES
Orders for AC drives to control electric motors increased sharply in all geographical areas and industrial sectors. Demand was strong especially for products for the marine industries and for elevators and escalators. Vacon also received orders in the second quarter for products for the wind power market in China, although the volume of orders was considerably lower than in the comparable period in the previous year.
Vacon had revenues in April-June of EUR 99.5 (107.2) million. Revenues declined 7.1% from the corresponding period in the previous year, but increased 18.2% from the first quarter of the year. January-June revenues were EUR 183.7 (202.2) million, down 9.1% from the corresponding period in the previous year. Low sales for the company's products for renewable energy generation and the low order intake in the final quarter of 2011 were factors in the decline in revenues in the second quarter and the first half of the year.
The operating profit in April-June was EUR 10.2 million, or 10.3% of revenues (EUR 11.5 million and 10.7%). The operating profit was boosted as the company reversed some of the provision it made in December 2011 in relation to a receivable from a solar energy customer. The company reversed EUR 1.2 million of the provision as it succeeded in obtaining part of the receivable during the second quarter of 2012. The company is continuing to take steps to safeguard and obtain the remainder of the receivable, but is still retaining part of the provision in case of a credit loss. 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%).
The operating profit in January-June totalled EUR 16.6 million, or 9.0% of revenues (EUR 20.4 million and 10.1%). Vacon has managed to obtain altogether EUR 2.7 million during the first half of the year in connection with a receivable from a solar energy customer. 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 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. The VACON 100 is one of the most significant new products in the history of the company. It is a multipurpose drive that can be adapted for hundreds of different applications, has extremely low life cycle costs, and offers outstanding usability.
Prospects for 2012
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 DRIVEN BY DRIVES
Market guidelines for 2012
Vacon is retaining the market guidelines for 2012 that it published earlier. 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 %.
Vacon's target is to achieve revenues of EUR 500 million in 2014. The profitability targets for 2014 are an operating profit of 14 % and a return on equity of more than 30 %.
Financial reports in 2012
Vacon is publishing its third interim report in 2012 as follows:
- January-September: 24 October 2012
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 is driven by a passion to develop, manufacture and sell the best AC drives and inverters in the world — and to provide efficient life-cycle services for its customers. Our AC drives offer optimum process control and energy efficiency for electric motors. Vacon inverters are a key component in producing energy from renewable sources. Vacon has R&D and production units in Europe, Asia and North America, and sales companies in 27 countries. Vacon also has sales and service representatives in almost 90 countries. In 2011, Vacon had revenues of EUR 380.9 million and globally employed 1,500 people. The shares of Vacon Plc (VAC1V) are quoted on the main list of the Helsinki stock exchange (NASDAQ OMX Helsinki).
Driven by Drives, www.vacon.com
Vantaa, 1 August 2012
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 1 August 2012 at Pörssitalo (Stock Exchange building), Fabianinkatu 14 A, 2nd floor, access through the reception for NASDAQ OMX Helsinki. The briefing will be in Finnish.
Dial-in conference for investors and investment analysts
An international dial-in conference for investors and investment analysts will be held at 3.00 pm on 1 August 2012.
President and CEO Vesa Laisi and Eriikka Söderström, CFO and Vice President, Finance and Control, will participate in the conference. Lines can be booked ten minutes before the conference by calling the service number +358 (0)9 6937 9590 (Finland) or +44 (0)20 7784 1036 (UK). The conference ID code is 9435939. To hear a recording of the conference, available for seven working days, call +358 (0)9 2310 1650 (Finland) or +44 (0)20 7111 1244 (UK), ID code 9435939.
- Conference link: http://www.media-server.com/m/p/deh7ryrj
The presentation material will be available before the media briefing on Vacon's website at: www.vacon.com > Investors
DISTRIBUTION:
NASDAQ OMX Helsinki
Financial Supervisory Authority
Main Media
VACON DRIVEN BY DRIVES
Vacon Plc, Interim Report 1 January – 30 June 2012
Business environment and business development
According to Vacon's assessment, the AC drive market grew also during the second quarter of the year. Demand for AC drives to control electric motors increased steadily in all geographical areas and industrial sectors.
During the second quarter of 2012 Vacon's business developed in line with expectations. The volume of orders rose strongly and 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.
Orders for and sales of AC drives to control electric motors increased in all geographical areas and in all key industrial sectors. In contrast, orders and sales of products for the generation of renewable energy remained at a low level compared to 2011.
During the first half of 2012 Vacon has launched several new products that have had a positive reception in the sales network.
Order intake and order book
Orders received by Vacon increased in the April-June period compared to the second quarter of 2011 and to the first quarter of 2012. Orders received in April-June totalled EUR 108.9 (103.8) million. Orders received in the second quarter include a EUR 7 million project order from a marine industry customer that will be delivered during the second half of 2012 and during 2013. Orders in the first half of the year totalled EUR 205.8 (204.6) million.
Orders for AC drives to control electric motors increased sharply in all geographical areas and industrial sectors. Demand was particularly strong for products for the marine industries and for elevators and escalators. Vacon also received orders in the second quarter for products for the wind power market in China, although the volume of orders was considerably lower than in the comparable period in the previous year.
Developments in orders received by Vacon during the second quarter of the year, compared to the corresponding period in the previous year, by market region were as follows: Asia and Pacific (APAC) growth of 26.6%, Europe, Middle East and Africa (EMEA) decline of 6.1%, and North and South America growth of 32.6%. The decline in the EMEA region was due to the poor volume of orders for renewable energy products. The order book rose by EUR 22.1 million from the beginning of the year and EUR 9.4 million from the end of March, standing at EUR 58.7 (54.5) million at the end of June.
VACON DRIVEN BY DRIVES
Revenues
During the April-June period Vacon's revenues totalled EUR 99.5 (107.2) million. This was a decline of 7.1 % from the corresponding period in the previous year but an increase of 18.2 % from the first quarter in 2012. January-June revenues totalled EUR 183.7 (202.2) million, down 9.1 % on the corresponding period in the previous year. Low sales for the company's products for renewable energy generation and the low order intake in the final quarter of 2011 were factors in the decline in revenues in the second quarter and in the first half of the year.
Operating profit and result
The operating profit in the April-June period was EUR 10.2 million, or 10.3 % of revenues (EUR 11.5 million and 10.7 %). The operating profit was boosted as the company reversed some of the provision it made in December 2011 in relation to a receivable from a solar energy customer. The company reversed EUR 1.2 million of the provision as it succeeded in obtaining part of the receivable during the second quarter of 2012. The company is continuing to take steps to safeguard and obtain the remainder of the receivable, but is still retaining part of the provision in case of a credit loss. 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 %).
The operating profit in January-June totalled EUR 16.6 million, or 9.0 % of revenues (EUR 20.4 million and 10.1 %). Vacon has managed to obtain altogether EUR 2.7 million during the first half of the year in connection with a receivable from a solar energy customer. 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 %).
Earnings per share in the second quarter were EUR 0.46 (0.58), down 20.1 %. Earnings per share for the January-June period were EUR 0.74, a decline of EUR 0.18 or 19.7 % on the previous year.
Balance sheet and cash flow
The balance sheet remained strong and the net cash flow from operating activities in the second quarter was EUR 1.5 million, down EUR 5.7 million on the corresponding period in the previous year.
In January-June the net cash flow from operating activities was EUR 19.8 million (EUR 0.8 million). The net cash flow from operating activities in the first half of the year was boosted by the decrease in the volume of trade receivables during the first quarter of 2012.
The balance sheet total stood at EUR 206.1 (253.8) million. The key elements in the reduction in the balance sheet total compared to the previous year were the change in the valuation of The Switch Engineering Oy shares in the company's balance sheet and the decrease in the volume of trade receivables. The equity ratio was 47.2 % (47.1 %). The Group's equity structure and liquidity remained strong. Interest-bearing net debt at the end of June totalled EUR 12.9 (31.5) million. Gearing was 13.5 % (26.8 %).
VACON DRIVEN BY DRIVES
Market position
Vacon Group revenues by market area were as follows:
| MEUR | 4-6/2012 | % | 4-6/2011 | % | 1-6/2012 | % | 1-6/2011 | % | 1-12/2011 | % |
|---|---|---|---|---|---|---|---|---|---|---|
| Europe, Middle East, Africa | 61.9 | 62.2 % | 75.3 | 70.2 % | 113.7 | 61.9 % | 141.3 | 69.9 % | 252.6 | 66.3 % |
| North and South America | 17.0 | 17.1 % | 14.6 | 13.6 % | 34.7 | 18.9 % | 32.3 | 16.0 % | 67.6 | 17.8 % |
| Asia and Pacific | 20.6 | 20.7 % | 17.3 | 16.2 % | 35.3 | 19.2 % | 28.5 | 14.1 % | 60.7 | 15.9 % |
| Total | 99.5 | 100.0 % | 107.2 | 100.0 % | 183.7 | 100.0 % | 202.2 | 100.0 % | 380.9 | 100.0 % |
Developments in Vacon's revenues during the January-June period, compared to the corresponding period in the previous year, by market region were as follows: in Europe, Middle East and Africa (EMEA) revenues declined 19.6%, in North and South America they increased 7.4% and in Asia and Pacific they increased 23.8%.
The cause of the decline in sales in the EMEA region was the poor demand for products for renewable energy generation. Demand for products for controlling electric motors, however, was strong in EMEA. Vacon reports its regional sales based on the invoicing addresses, not the final location of the products.
Vacon Group revenues by distribution channel:
| MEUR | 4-6/2012 | % | 4-6/2011 | % | 1-6/2012 | % | 1-6/2011 | % | 1-12/2011 | % |
|---|---|---|---|---|---|---|---|---|---|---|
| Direct sales | 7.6 | 7.6 % | 8.6 | 8.0 % | 14.1 | 7.7 % | 16.9 | 8.4 % | 36.9 | 9.7 % |
| Distributors | 13.7 | 13.8 % | 15.4 | 14.4 % | 27.8 | 15.1 % | 29.4 | 14.5 % | 57.8 | 15.2 % |
| OEM | 30.6 | 30.8 % | 23.7 | 22.1 % | 56.7 | 30.8 % | 47.2 | 23.4 % | 98.0 | 25.7 % |
| Brand label customers | 16.4 | 16.4 % | 18.1 | 16.9 % | 33.4 | 18.2 % | 36.9 | 18.3 % | 72.1 | 18.9 % |
| System integrators | 31.2 | 31.4 % | 41.4 | 38.6 % | 51.7 | 28.1 % | 71.7 | 35.5 % | 116.0 | 30.5 % |
| Total | 99.5 | 100.0 % | 107.2 | 100.0 % | 183.7 | 100.0 % | 202.2 | 100.0 % | 380.9 | 100.0 % |
Developments in Vacon's sales by distribution channel in the January-June period compared to the corresponding period in the previous year were as follows: direct sales, decline of 16.4%, OEM increase of 19.9%, distributors, decline of 5.4%, brand label customers down 9.5% and system integrators down 27.9%.
System integrators are the most important channel for selling products for renewable energy generation, which explains the decline in sales for this channel.
VACON DRIVEN BY DRIVES
Research and development
R&D expenditure in the January-June period totalled EUR 12.0 (12.4) million, and EUR 2.4 (3.6) million of this was capitalized as development costs. R&D costs accounted for 6.5 % of Group revenues (6.1 %).
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. The VACON 100 is one of the most significant new products in the history of the company. It is a multipurpose drive that can be adapted for hundreds of different applications, has extremely low life cycle costs, and offers outstanding usability.
Investments
Gross investments by the Group in the January-June period totalled EUR 6.6 (10.1) million. Expenditure focused particularly on projects for developing new products and on raising production capacity especially in China. The company has set limits for its investments in the first half of 2012 to save costs.
Organization and personnel
At the end of June the Group employed 1,468 (1,577) people, and 696 (854) of these were in Finland and 773 (723) in other countries.
Vacon announced in second quarter its new fine-tuned values. 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's renewed values are: Stronger together, Trust and Respect, Taking ownership and Passion for excellence.
The table below shows the average number of Vacon employees during the review period:
| 1-6/2012 | 1-6/2011 | 1-12/2011 | |
|---|---|---|---|
| Office personnel | 948 | 909 | 938 |
| Factory personnel | 505 | 531 | 532 |
| TOTAL | 1,452 | 1,440 | 1,470 |
VACON DRIVEN BY DRIVES
Shares and shareholders
Vacon had a market capitalization at the end of June of EUR 516.2 (661.5) million. The closing share price on 30 June 2012 was EUR 33.80. The lowest share price during the January-June period was EUR 31.11 and the highest EUR 42.00.
A total of 924,598 shares (6.1 % of the share stock) were traded on the stock exchange in the January-June period, in monetary terms EUR 34.2 million. According to the shareholder register updated on 30 June 2012, Vacon had 4,673 registered shareholders. Shares that were nominee registered and in foreign ownership amounted to 53.3 % (34.8 %) of the share stock.
Vacon's main shareholders on 30 June 2012:
| Number of shares | Holding, % | |
|---|---|---|
| AC Invest Three B.V. | 3,064,844 | 20.0 % |
| Ilmarinen Mutual Pension Insurance Company | 808,968 | 5.3 % |
| Tapiola Mutual Pension Insurance Company | 584,500 | 3.8 % |
| Koskinen Jari | 366,104 | 2.4 % |
| Vaasa Engineering Oy | 359,514 | 2.4 % |
| Ehrnrooth Martti | 325,070 | 2.1 % |
| Holma Mauri | 277,988 | 1.8 % |
| OP-Suomi Pienyhtiöt investment fund | 164,067 | 1.1 % |
| Tapiola Group companies | 164,180 | 1.1 % |
| Fondica Nordic Micro Cap | 145,000 | 0.9 % |
| Vacon Plc own shares | 23,227 | 0.2 % |
| Others | 9,011,538 | 58.9 % |
| Total | 15,295,000 | 100.0 % |
| Shares outstanding | 15,271,773 |
On 30 June 2012 members of Vacon's Board of Directors, the President and CEO, and the Deputy to the CEO held directly a total of 31,558 shares or 0.2 % of Vacon's share stock.
Own shares
On 30 June 2012 Vacon Plc held a total of 23,227 of its own shares, which it had acquired at an average price of EUR 24.33. This is 0.2 % of the share capital and voting rights, so it has no significant impact on the distribution of ownership or voting rights in the company.
Dividend
The AGM decided in March 2012 to pay a dividend of EUR 0.90 a share, in total EUR 13,733,992.80, in accordance with the proposal of the Board of Directors. The dividend was paid on 11 April 2012.
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.
Common risks and uncertainties affecting the company's business
Typical and common risks to which Vacon's business operations are exposed relate to uncertainty in demand and intensifying competition on price, to losing customers, credit losses, goodwill, the availability of raw materials and components, and to fluctuations in the values of foreign currencies.
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.
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 accounted for 13 % of Vacon's revenues in 2011. In the first half of 2012 these products accounted for a much smaller share 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. Sales of equipment for renewable energy generation is for Vacon based on projects, so it causes 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 also contains a political risk.
Vacon has thousands of customers worldwide. The ten largest customers currently account for some 40 % 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.
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VACON DRIVEN BY DRIVES
Vacon's balance sheet includes goodwill of EUR 9.4 million, most of which is related to the company acquisition at the beginning of 2008. The company tests goodwill for impairment annually.
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.
Prospects for 2012
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).
Market guidelines for 2012
Vacon is retaining the market guidelines for 2012 that it published earlier. 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%.
Vacon's target is to achieve revenues of EUR 500 million in 2014. The profitability target for 2014 is an operating profit of 14% and the target for return on equity is more than 30%.
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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 2011 consolidated financial statements. The interim report is unaudited.
Consolidated statement of income, IFRS, MEUR
| 4-6/2012 | 4-6/2011 | 1-6/2012 | 1-6/2011 | 1-12/2011 | |
|---|---|---|---|---|---|
| Revenues | 99.5 | 107.2 | 183.7 | 202.2 | 380.9 |
| Other operating income | 0.0 | 0.1 | 0.1 | 0.2 | 0.3 |
| Change in inventories of finished goods and work in progress | -1.3 | -1.6 | -0.7 | 2.3 | -2.2 |
| Materials and services | -52.0 | -55.9 | -95.8 | -110.1 | -202.8 |
| Employee benefit related expenses | -18.5 | -17.8 | -38.2 | -35.7 | -68.8 |
| Other operating expenses | -14.1 | -17.5 | -26.0 | -32.7 | -70.4 |
| Depreciation | -1.6 | -1.3 | -3.1 | -2.5 | -5.4 |
| Amortization | -1.8 | -1.7 | -3.5 | -3.3 | -6.8 |
| Operating profit | 10.2 | 11.5 | 16.6 | 20.4 | 24.7 |
| Financial income and expenses | 0.0 | 0.5 | -0.3 | 0.2 | 2.2 |
| Profit before taxes | 10.2 | 12.0 | 16.3 | 20.5 | 27.0 |
| Income taxes | -3.0 | -3.0 | -4.6 | -5.9 | -9.3 |
| Profit for the period | 7.2 | 9.0 | 11.7 | 14.6 | 17.7 |
| Attributable to: | |||||
| Equity holders of the parent | 7.0 | 8.8 | 11.4 | 14.1 | 16.8 |
| Non-controlling interests | 0.2 | 0.2 | 0.3 | 0.4 | 0.8 |
| Earnings per share, euro | 0.46 | 0.58 | 0.74 | 0.93 | 1.10 |
| Diluted earnings per share, euro | 0.46 | 0.58 | 0.74 | 0.93 | 1.10 |
Consolidated statement of comprehensive income, MEUR
| 4-6/2012 | 4-6/2011 | 1-6/2012 | 1-6/2011 | 1-12/2011 | |
|---|---|---|---|---|---|
| Profit for the period | 7.2 | 9.0 | 11.7 | 14.6 | 17.7 |
| Other comprehensive income | |||||
| Cash flow hedging | 0.0 | 0.0 | 0.0 | 0.2 | -0.1 |
| Available for sale financial assets | 0.0 | 0.1 | 0.0 | 27.1*) | 2.5*) |
| Translation differences | 0.5 | 0.0 | 0.3 | -0.6 | 1.0 |
| Total comprehensive income | 7.7 | 9.0 | 12.0 | 41.3 | 21.1 |
| Attributable to: | |||||
| Equity holders of the parent | 7.6 | 8.8 | 11.6 | 40.9 | 20.3 |
| Non-controlling interests | 0.2 | 0.2 | 0.3 | 0.4 | 0.8 |
*) Assessment at fair value relating to holding in The Switch.
VACON
DRIVEN BY DRIVES
Consolidated statement of financial position, IFRS, MEUR
| 30.6.2012 | 30.6.2011 | 31.12.2011 | |
|---|---|---|---|
| ASSETS | |||
| Goodwill | 9.4 | 8.8 | 9.2 |
| Development costs | 18.5 | 15.2 | 17.4 |
| Other intangible assets | 7.8 | 10.2 | 9.3 |
| Property, plant and equipment | 25.7 | 22.7 | 25.1 |
| Available-for-sale financial assets | 3.7 | 0.0 | 3.7 |
| Deferred tax assets | 6.0 | 5.4 | 5.7 |
| Other financial assets | 2.1 | 1.7 | 2.3 |
| Total non-current assets | 73.1 | 63.9 | 72.7 |
| Inventories | 28.3 | 33.3 | 28.2 |
| Trade and other receivables | 85.9 | 105.3 | 80.9 |
| Available-for-sale financial assets | 0.0 | 30.0*1 | 0.0 |
| Cash and cash equivalents | 18.8 | 21.3 | 16.3 |
| Total current assets | 133.0 | 189.9 | 125.4 |
| Total assets | 206.1 | 253.8 | 198.1 |
| 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 | 2.3 | 27.2*1 | 2.3 |
| Retained earnings | 86.4 | 83.3 | 88.0 |
| Non-controlling interests | 1.7 | 1.6 | 1.9 |
| Total equity | 95.9 | 117.6 | 97.7 |
| Deferred tax liabilities | 6.0 | 7.0 | 6.0 |
| Employee benefits | 1.8 | 1.8 | 1.7 |
| Interest-bearing liabilities | 20.2 | 8.6 | 20.2 |
| Other liabilities | 0.0 | 0.2 | 0.0 |
| Total non-current liabilities | 28.0 | 17.6 | 27.9 |
| Trade and other payables | 59.7 | 60.3 | 53.1 |
| Income tax liabilities | 0.9 | 5.6 | 1.7 |
| Provisions | 10.2 | 8.5 | 9.3 |
| Interest-bearing liabilities | 11.5 | 44.2 | 8.5 |
| Total current liabilities | 82.3 | 118.7 | 72.5 |
| Total equity and liabilities | 206.1 | 253.8 | 198.1 |
*1 Assessment at fair value relating to holding in The Switch 27 MEUR.
VACON
DRIVEN BY DRIVES
Q2 2012 Consolidated statement of changes in equity, IFRS (MEUR)
Attributable to equity holders of the parent
| Share capital | Share premium reserve | Other reserves | Own shares | Re-valuation reserve | Retained earnings | Total | Non-controlling interests | Total equity | |
|---|---|---|---|---|---|---|---|---|---|
| Equity Jan 1, 2012 | 3.1 | 5.0 | 0.1 | -2.6 | 2.3 | 88.0 | 95.8 | 1.9 | 97.7 |
| Profit for the period | 11.4 | 11.4 | 0.3 | 11.7 | |||||
| Other total comprehensive income: | |||||||||
| Translation differences | 0.3 | 0.3 | 0.3 | ||||||
| Total comprehensive income for the period | 11.6 | 11.6 | 0.3 | 12.0 | |||||
| Share bonuses | 0.7 | 0.7 | 0.7 | ||||||
| Dividends paid | -13.7 | -13.7 | -0.6 | -14.3 | |||||
| Acquisition of non-controlling interests | -0.2 | -0.2 | 0.0 | -0.2 | |||||
| Equity June 30, 2012 | 3.1 | 5.0 | 0.1 | -2.6 | 2.3 | 86.4 | 94.2 | 1.7 | 95.9 |
Q2 2011 Consolidated statement of changes in equity, IFRS (MEUR)
Attributable to equity holders of the parent
| Share capital | Share premium reserve | Other reserves | Own shares | Re-valuation 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 | 14.1 | 14.1 | 0.4 | 14.6 | |||||
| Other total comprehensive income: | |||||||||
| Cash flow hedging | 0.2 | 0.2 | 0.2 | ||||||
| Available-for-sale financial assets | 27.1 | 27.1 | 27.1 | ||||||
| Translation differences | -0.6 | -0.6 | -0.6 | ||||||
| Total comprehensive income for the period | 27.3 | 13.6 | 40.9 | 0.4 | 41.3 | ||||
| Share bonuses | 0.6 | 0.6 | 0.6 | ||||||
| Dividends paid | -15.2 | -15.2 | -0.4 | -15.6 | |||||
| Equity June 30, 2011 | 3.1 | 5.0 | 0.1 | -2.6 | 27.2 | 83.3 | 116.0 | 1.6 | 117.6 |
VACON
DRIVEN BY DRIVES
Consolidated statement of cash flow, IFRS, MEUR
| 4-6/2012 | 4-6/2011 | 1-6/2012 | 1-6/2011 | 1-12/2011 | |
|---|---|---|---|---|---|
| Profit for the period | 7.2 | 9.0 | 11.7 | 14.6 | 17.7 |
| Depreciation | 3.4 | 3.0 | 6.6 | 5.8 | 12.2 |
| Financial income and expenses | 0.0 | -1.2 | 0.3 | -0.9 | -2.2 |
| Taxes | 3.0 | 3.0 | 4.6 | 5.9 | 9.3 |
| Other adjustments | -1.4 | 0.3 | -2.4 | 0.8 | 12.3 |
| Change in working capital | -6.4 | -2.1 | 6.1 | -19.0 | -6.5 |
| Net cash flow from financial items and tax | -4.4 | -4.7 | -7.1 | -6.4 | -15.9 |
| Net cash flow from operating activities | 1.5 | 7.2 | 19.8 | 0.8 | 26.8 |
| Acquisition of subsidiary | -0.2 | 0.0 | -0.3 | 0.0 | 0.0 |
| Investments in tangible and intangible assets | -3.3 | -5.0 | -6.4 | -10.1 | -18.7 |
| Other investments | 0.0 | 2.2 | 0.3 | 2.3 | 0.3 |
| Repayment of loans receivables | 0.0 | 0.0 | 0.0 | 0.0 | 2.0 |
| Proceeds from disposal of other investments | 0.0 | 0.0 | 0.0 | 0.0 | 2.6 |
| Dividends received | 0.0 | 0.7 | 0.0 | 0.7 | 0.7 |
| Net cash flow from investing activities | -3.5 | -2.1 | -6.5 | -7.1 | -13.1 |
| Proceeds from long-term borrowings | -0.2 | 0.1 | 0.4 | 0.2 | 20.2 |
| Repayment of long-term loans | 0.0 | -1.1 | 0.0 | -1.1 | -10.7 |
| Proceeds from short-term borrowings | 6.0 | 12.2 | 13.0 | 27.7 | 27.7 |
| Repayment of short-term loans | 5.3 | -1.6 | -10.1 | -1.6 | -37.8 |
| Dividends paid | -13.9 | -15.5 | -14.4 | -15.6 | -15.7 |
| Net cash flow from financing activities | -2.8 | -5.8 | -11.0 | 9.6 | -16.2 |
| Change in cash and cash equivalents | -4.8 | -0.8 | 2.3 | 3.3 | -2.5 |
| Cash and cash equivalents at start of period | 23.3 | 22.1 | 16.3 | 18.4 | 18.4 |
| Translation differences for cash and cash equivalents | 0.4 | 0.0 | 0.2 | -0.4 | 0.4 |
| Cash and cash equivalents at end of period | 18.8 | 21.3 | 18.8 | 21.3 | 16.3 |
VACON DRIVEN BY DRIVES
Segment information
Vacon has focused on one product, AC drives, and this is also Vacon's only business segment.
The figures for the business segment are identical to the figures for the whole Group. Vacon's operations are organized in the following main functions: Market Operations, Product Operations and Support Functions. To ensure that the organization is customer-oriented, operations are controlled by sales channels: distributors, systems integrators, direct sales, OEM customers and brand label customers.
Key financial indicators
| Per share data | 30.6.2012 | 30.6.2011 | 31.12.2011 |
|---|---|---|---|
| Earnings per share, EUR | 0.74 | 0.93 | 1.10 |
| Equity per share, EUR | 6.17 | 7.60 | 6.28 |
| Lowest trading price, EUR | 31.11 | 37.65 | 27.21 |
| Highest trading price, EUR | 42.00 | 48.73 | 48.73 |
| Share price at end of period, EUR | 33.80 | 43.35 | 30.90 |
| Average trading price, EUR | 37.02 | 42.62 | 38.50 |
| Market capitalization, MEUR | 516.2 | 661.5 | 471.5 |
| Trading volume, no. of shares | 924,598 | 1,358,955 | 2,975,467 |
| Trading volume, % | 6.1 | 8.9 | 19.5 |
| Adjusted average number of shares during the period | 15,264,394 | 15,232,557 | 15,246,387 |
| Number of shares at end of period | 15,271,773 | 15,259,992 | 15,259,992 |
| Own shares | 23,227 | 35,008 | 35,008 |
VACON
DRIVEN BY DRIVES
Key indicators showing the Group's financial performance
| 30.6.2012 | 30.6.2011 | 31.12.2011 | |
|---|---|---|---|
| Revenues, MEUR | 183.7 | 202.2 | 380.9 |
| Change in revenues, % | -9.1 | 38.9 | 12.7 |
| Operating profit, MEUR | 16.6 | 20.4 | 24.7 |
| Change in operating profit, % | -18.5 | 81.5 | -13.4 |
| Operating profit, % of revenues | 9.0 | 10.1 | 6.5 |
| Profit before taxes, MEUR | 16.3 | 20.5 | 27.0 |
| Profit before taxes, % of revenues | 8.9 | 10.1 | 7.1 |
| Interest-bearing net liabilities, MEUR | 12.9 | 31.5 | 12.4 |
| Gearing, % | 13.5 | 26.8 | 12.7 |
| Working capital, MEUR | 43.4 | 64.1 | 45.1 |
| Equity ratio, % | 47.2 | 47.1 | 50.0 |
| Gross capital expenditure, MEUR | 6.6 | 10.1 | 18.7 |
| Gross capital expenditure, % of revenues | 3.6 | 5.0 | 4.9 |
| R & D expenditure, MEUR | 12.0 | 12.4 | 25.1 |
| R & D expenditure, % of revenues | 6.5 | 6.1 | 6.6 |
| Number of personnel at end of period | 1,468 | 1,577 | 1,468 |
| Order book, MEUR | 58.7 | 54.5 | 36.6 |
Commitments and contingencies, MEUR
| 30.6.2012 | 30.6.2011 | 31.12.2011 | |
|---|---|---|---|
| Commitments and contingencies | 11.8 | 6.8 | 17.2 |
| Financing commitments | 0.1 | 0.1 | 0.1 |
Group quarterly performance, MEUR
| 4-6/2012 | 1-3/2012 | 10-12/2011 | 7-9/2011 | 4-6/2011 | 1-3/2011 | |
|---|---|---|---|---|---|---|
| Revenues | 99.5 | 84.2 | 87.6 | 91.1 | 107.2 | 95.0 |
| Operating profit | 10.2 | 6.4 | -3.9 | 8.2 | 11.5 | 8.9 |
| Profit before tax | 10.2 | 6.1 | -1.4 | 7.8 | 12.0 | 8.5 |
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 | |
| Dividend per share = | Dividend for financial year |
| Adjusted 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 expenditure = | 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 year end x closing share price |
| Share turnover % = | Number of shares traded during the year x 100 |
| Adjusted average number of shares |