AI assistant
NACON Investor Presentation 2011
1539_rns_2011-02-02_e33655c9-f471-4fab-a992-7b319d7512b7.pdf
Investor Presentation
Open in viewerOpens in your device viewer
VACON
NEW YORK DRIVES
Vacon Financial Report for 2010
February 2, 2011
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.
2/2/2011 | 2
VACON DRIVEN BY DRIVES
Outline
- Business environment and key events in 2010, Vesa Laisi, President and CEO
- Highlights Q4 and 2010, Vesa Laisi, President and CEO
- Financial Report, Eriikka Söderström, CFO
- Outlook, Vesa Laisi, President and CEO
- Appendix
2/2/2011 | 3
VACON
DRIVEN BY DRIVES
Business environment
- The global AC drive market picked up considerably in 2010 from its state in 2009. According to business research firm Frost & Sullivan, the AC drive market grew about 8 % in 2010. The AC drive market had a value of USD 9 billion in 2010.
- The construction industry, renewable energy production and machine building were the industrial sectors that picked up most strongly. Sectors that normally require major investment, such as ship building, were still growing slowly.
- During 2010 Vacon strengthened its global position and Vacon's market share is estimated at some 5 % and the company is one of the seven largest AC drive suppliers in the world.
- Frost & Sullivan 2010
2/2/2011 | 4
VACON
DRIVEN BY DRIVES
2010: Vacon back on the Growth Path
- Vacon has come through the economic downturn in good shape
- Orders went up across most segments and regions, short cycle businesses are booming
- Inverter orders to solar applications took off
- Revenues were growing fast but the growth was negatively impacted by industry-wide shortage of certain components.
- EBIT margin improvement was on track, sales growth was on low power side with lower margin than average
- The Board of Directors proposes to the Annual General Meeting of Shareholders that a dividend of EUR 1.00 per share be paid from the profit in 2010.
2/2/2011 | 5
VACON
DRIVEN BY DRIVES
Other Vacon's key events in 2010
- In the spring 2010 Vacon purchased a small company that specializes in solar energy technology
- Vacon signs supplier contract with KONE
- Vacon introduced new products
- Vacon and F-Secure join forces for industrial automation security research
- Vacon donates EUR 100,000 to Finnish universities
- The Chinese prosecuting authority demands compensation of EUR 3.2 million from Vacon, and a provision for this was recorded in the result for the fourth quarter.
2/2/2011 | 6
VACON
DRIVEN BY DRIVES
Highlights Q4/2010
| MEUR | Q4/2010 | Q4/2009 | Change |
|---|---|---|---|
| Order intake | 82.4 | 63.5 | +30 % |
| Revenues | 103.2 | 64.2 | +61 % |
| Operating profit | 9.1 | 4.3 | +112 % |
| Operating profit, % | 8.8 | 6.7 | |
| Operating cash flow | 1.6 | 12.1 | -86 % |
| EPS, euro | 0.46 | 0.19 | +146 % |
2/2/2011 | 7
VACON
DRIVEN BY DRIVES
Highlights 2010
| MEUR | 2010 | 2009 | Change |
|---|---|---|---|
| Order intake | 358.2 | 256.1 | +40 % |
| Revenues | 338.0 | 272.0 | +24 % |
| Operating profit | 28.6 | 22.5 | +27 % |
| Operating profit, % | 8.5 | 8.3 | |
| Operating cash flow | 15.9 | 37.1 | -57 % |
| EPS, euro | 1.22 | 1.01 | +20 % |
| Dividend, euro * | 1.00 | 0.70 | +43 % |
- The Board of Directors' proposition to the Annual General Meeting of Shareholders
2/2/2011 | 8
VACON
GREEN BY DRIVER
Financial Report
Eriikka Söderström,
Chief Financial Officer,
Vacon Plc
VACON
DRIVEN BY DRIVES
Revenues
2/2/2011 | 10
VACON
DRIVEN BY DRIVES
Orders and revenues 2008-2010
| Order intake | 78,2 | 83,3 | 77,8 | 67,2 | 69,0 | 66,4 | 57,1 | 63,5 | 72,8 | 92,1 | 110,9 | 82,4 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenues | 65,9 | 78,0 | 74,2 | 75,2 | 70,0 | 75,7 | 62,1 | 64,2 | 65,3 | 80,2 | 89,3 | 103,2 |
2/2/2011 | 11
VACON
DRIVEN BY DRIVES
Order intake and order book 2008-2010
| Order intake | 78,2 | 83,3 | 77,8 | 67,2 | 69,0 | 66,4 | 57,1 | 63,5 | 72,8 | 92,1 | 110,9 | 82,4 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Order book | 47,1 | 52,4 | 56,0 | 48,0 | 47,0 | 37,7 | 32,7 | 32,0 | 39,4 | 51,3 | 72,9 | 52,1 |
2/2/2011 | 12
VACON
DRIVEN BY DRIVES
Order intake by region Q4 2010
2/2/2011 | 13
VACON
DRIVEN BY DRIVES
Order intake by region
2/2/2011 | 14
VACON
DRIVEN BY DRIVES
Revenues by region Q4 2010
2/2/2011 | 15
VACON
DRIVEN BY DRIVES
Revenues by region
2/2/2011 | 16
VACON
DRIVEN BY DRIVES
Revenues by sales channel
2/2/2011 | 17
VACON
DRIVEN BY DRIVES
EBIT
Excl. China customs case
) 12,6 MEUR
*) 32,4 MEUR
2/2/2011 | 18
VACON
DRIVEN BY DRIVES
Revenues and EBIT-%
*) Excl. China customs case 12,2%
2/2/2011 | 19
VACON
DRIVEN BY DRIVES
Research and development costs
2/2/2011 | 20
VACON
DRIVEN BY DRIVES
Operating cash flow
2/2/2011 | 21
VACON
DRIVEN BY DRIVES
Working capital
| MEUR | 31.12.2010 | 31.12.2009 | 31.12.2008 |
|---|---|---|---|
| Inventories | 31.9 | 19.3 | 21.3 |
| Non-interest bearing receivables | 90.8 | 51.3 | 61.7 |
| Non-interest bearing liabilities | 76.7 | 39.3 | 40.6 |
| Working capital | 45.9 | 31.2 | 42.5 |
| Working capital of rolling revenues, % | 13.6 | 11.5 | 14.5 |
2/2/2011 | 22
VAGON
DRIVEN BY DRIVES
Return on equity ratio, %
Return on equity -% = $\frac{\text{Profit for the financial year} \times 100}{\text{Total equity, average of the beginning and end of the year}}$
2/2/2011 | 23
VACON
DRIVEN BY DRIVES
Personnel
Average personnel
| 2006 | 2007 | 2008 | 2009 | 2010 | |
|---|---|---|---|---|---|
| Total | 618 | 772 | 1131 | 1231 | 1301 |
| ■ Factory personnel | 194 | 260 | 444 | 468 | 493 |
| ■ Office personnel | 424 | 512 | 687 | 763 | 808 |
Personnel at end of period
| 2006 | 2007 | 2008 | 2009 | 2010 | |
|---|---|---|---|---|---|
| Total | 675 | 869 | 1197 | 1228 | 1339 |
| ■ in other countries | 228 | 314 | 558 | 601 | 652 |
| ■ in Finland | 447 | 555 | 639 | 627 | 687 |
2/2/2011 | 24
VACON
DRIVEN BY DRIVES
Key balance sheet ratios
- Equity ratio
- Net debt and gearing,%
2/2/2011 | 25
VACON
DRIVEN BY DRIVES
Earnings per share
2/2/2011 | 26
VACON®
SÖREVEN 60-80/90'S
Outlook
Vesa Laisi,
President and CEO,
Vacon Plc
VACON
DRIVEN BY DRIVES
Strategy
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 |
|---|---|---|---|---|
2/2/2011 | 28
VACON DRIVEN BY DRIVES
Market outlook
- 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 problems with the availability of raw material and components that affected the company’s deliveries in 2010 are forecast to continue during the first months of 2011, but Vacon expects an improvement in their availability by the middle of 2011.
2/2/2011 | 29
VACON
DRIVEN BY DRIVES
Market guidance 2011
| ACT 2010 | FC 2011 | |
|---|---|---|
| Revenues, MEUR | 338,0 | +10–20 % |
| EBIT margin, % | 8,5 % | > 8,5 % |
| EPS, EUR | 1.22 | > 1,22 |
- 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 from 2010.
2/2/2011 | 30
VACON
DRIVEN BY DRIVES
Risks and factors causing uncertainty
| The uncertainty in general demand | The availability and quality of raw materials and components |
|---|---|
| Foreign exchange risks | Price competition |
2/2/2011 | 31
VACON
DRIVEN BY DRIVES
Major shareholders December 31, 2010
Others 23.9 %
Nominee registered and
in foreign ownership 34.7%
Ahlström Capital Oy Group 20.0 %
Ilmarinen Mutual Pension
Insurance Company 4.6 %
Tapiola Mutual Pension
Insurance Company 3.8 %
Vaasa Engineering 2.5 %
Koskinen Jari 2.4 %
Ehrnrooth Martti 2.1 %
Holma Mauri 2.0 %
Tapiola Group Companies 1.6 %
Karppinen Veijo 0.9 %
Autio Heikki 0.9 %
Own shares 0.5 %
2/2/2011 | 32
VACON DRIVEN BY DRIVES
Contacts
- Vesa Laisi, CEO
- +358 40 8371 510, e-mail: [email protected]
- Eriikka Söderström, CFO
- +358 40 8371 445, e-mail: [email protected]
- Johanna Koskinen, IR
- +358 40 8371 528, e-mail: [email protected]
2/2/2011 | 33
VAGON
DRIVÉN BY DRIVES