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NACON Investor Presentation 2013
1539_rns_2013-10-22_46a5928b-9cea-447b-8063-5c7a3646c70a.pdf
Investor Presentation
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VAGON®
CUSTOM BY CHEVES
Vacon - Interim Report Q3/2013
October 22, 2013
Vesa Laisi, President and CEO
Pia Aaltonen-Forsell, CFO
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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.
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Outline
- Highlights in Q3 and Q1-Q3/2013
- Financial Report
- Outlook
- Appendix
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Vacon's business developed positively during the Q3 of 2013
- According to market surveys, the global AC drive market increased by some 3% in the first six months of 2013 year-on-year. All geographical regions showed growth.
- Vacon's revenues increased strongly in the July–September period. Revenues were so far the highest in the company's history.
- Operating profit percentage improved in Q3 because of the growth in revenues and the cost benefits obtained from transferring material sourcing to lower-cost countries. A change in the sales mix also made a slight improvement to profitability.
- Order intake declined in Q3 quarter–on-quarter and year-on-year due in particular to the decline in orders for renewable energy products.
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Regional development in Q3/2013 vs. Q3/2012
Americas
- Revenues declined 13.6%.
- Revenues declined in several industrial sectors. Revenues increased in the oil and gas and process industries.
- Order intake declined 3.4%.
EMEA
- Revenues increased 21.6%
- Growth took place in building automation, the chemical industry, marine and offshore and renewable energy.
- Order intake declined 8.5%. The fall in orders received was due to the decline in orders for renewable energy products.
APAC
- Revenues were similar to those in the same period in the previous year.
- Positive developments took place particularly in building automation.
- Order intake grew 7.7%.
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Results Q3/2013
| MEUR | Q3/2013 | restated * Q3/2012 | Change |
|---|---|---|---|
| Order intake | 97.9 | 101.6 | -3.6% |
| Revenues | 110.4 | 101.5 | 8.8% |
| Operating profit | 14.8 | 10.3 | 44.4% |
| Operating profit, % of revenues | 13.4% | 10.1% | |
| Net cash flow from operating activities | 9.5 | 17.4 | -45.2% |
| EPS, eur | 0.65 | 0.45 |
*) Figures adjusted in accordance with IAS 19. More details of changes in IFRS standards are given in the interim report.
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Results 1-9/2013
| MEUR | 1-9/2013 | restated *
1-9/2012 | Change |
| --- | --- | --- | --- |
| Order intake | 312.1 | 307.4 | 1.5% |
| Revenues | 305.1 | 285.2 | 7.0% |
| Operating profit without one-time items ** | 31.0 | 24.3 | 27.4% |
| Operating profit, % of revenues ** | 10.2% | 8.5% | |
| Net cash flow from operating activities | 32.0 | 37.2 | -13.9% |
| EPS, eur | 1.40 | 1.21 | |
) Figures adjusted in accordance with IAS 19. More details of changes in IFRS standards are given in the interim report.
*) One-time items totalling EUR 2.7 million boosted the January-September 2012 operating profit.
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Financial Report
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Order intake and revenues 2011-2013
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Order intake by region 2012-2013
Given percentage is actual quarter Q3 2013 compared to the corresponding period in the previous year.
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Revenues by sales channel 2012-2013
Given percentage is actual quarter Q3 2013 compared to the corresponding period in the previous year.
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EBIT without one-time items
| MEUR | 2009 | ||||
|---|---|---|---|---|---|
| 2010 | |||||
| 2011 | |||||
| 2012 | |||||
| 2013 | |||||
| 2014 | |||||
| 2015 | |||||
| 2009: 22,5 | 2010: 32,4 | 2011: 34,8 | * 2012: 36,5 | 2013: 31,0 | |
| --- | --- | --- | --- | --- | --- |
| Q4 | 4,3 | 12,6 | 5,7 | 12,2 | |
| Q3 | 3,4 | 8,6 | 8,2 | 10,3 | 14,8 |
| Q2 | 7,8 | 6,6 | 12,0 | 9,1 | 10,4 |
| Q1 | 7,1 | 4,6 | 8,9 | 5,0 | 5,8 |
*) 2012 restated
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Revenues and EBIT-% without one-time items
*) 2012 Ebit margin, % restated
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Earnings per share
*) 2012 restated
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Research and development costs
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Net Cash Flow from operating activities
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Working capital
| MEUR | 30.9.2013 | * 30.9.2012 | * 31.12.2012 |
|---|---|---|---|
| Inventories | 26.1 | 28.1 | 25.7 |
| Non-interest bearing receivables | 81.6 | 82.2 | 76.9 |
| Non-interest bearing liabilities | 72.2 | 73.8 | 69.6 |
| Working capital | 35.5 | 36.6 | 33.0 |
| Working capital of rolling revenues, % | 8.7 | 12.8 | 8.5 |
*) 2012 restated
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Working capital development
Inventories Non-interest bearing receivables Non-interest bearing liabilities wc of rolling revenues, %
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Key balance sheet ratios
- Equity ratio
- Net Debt and Gearing,%
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Outlook
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Global megatrends support the long term growth
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Prospects for 2013
- According to market surveys, the global AC drive market increased by some 3% in the first six months of 2013 year-on-year.
- Vacon has previously estimated, based on information from market research institutes, that the global AC drive market would grow faster than average growth in industrial production, at an estimated rate of 5-10% in 2013.
- Vacon considers now that there is greater uncertainty relating to the market growth estimate.
- Vacon’s estimate of the company’s performance in the final part of the year supports the market guidelines it has issued, even though the volume of orders received declined in July–September from the previous quarter.
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Market guidelines for 2013
| ACT 2012 | FC 2013 | |
|---|---|---|
| Revenues, MEUR | 388.4 | + 5-15% |
| EBIT margin, % (excluding one-time items) | 9.4% | 10-12% |
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Risks and uncertainties in the near future
- There are still uncertainties relating to developments in the global economy, and these may weaken demand for AC drives globally or in certain regions.
- 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 provisions in 2010 and 2011 relating to this risk.
- Vacon's 2012 annual report gives a detailed description of the risks and uncertainties relating to the company's business and of the principles for risk management.
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Major shareholders
Others 27.8%
Nominee registered and in foreign ownership 37.5% (incl. AC Invest Three B.V. 51.0%)
AC Invest Three B.V. 13.5%
Ilmarinen Mutual Pension
Insurance Company 5.6%
Tapiola Mutual Pension
Insurance Company 3.8%
Koskinen Jari 2.4%
Ehrnrooth Martti 2.1%
Vaasa Engineering Ltd 2.0%
Holma Mauri 1.4%
Special Fund Handelsbanken Nordic Selective 1.3%
Fondita Nordic Micro Cap 1.1%
OP-Finland Small Firms Fund 1.1%
Own shares 0.3%
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Vacon IR
Contacts:
- Vesa Laisi, President and CEO
+358 40 8371 510,
[email protected] - Pia Aaltonen-Forsell, CFO
+358 40 8371 910
[email protected] - Sebastian Linko, Director, Corporate Communications and IR,
+358 40 8371 634,
[email protected]
Calendar:
- Capital Markets Day on 28 November in Helsinki.
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www.vacon.com/2020
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Thank You!