Vaisala Corporation Stock exchange release 19 February 2010 at 9.00 a.m.
Fourth quarter net sales at high level, full year net sales slightly lower than
in previous year. Order book remains strong and long term objectives unchanged.
* Net sales EUR 231.8 (242.5) million, decline 4.4%. In comparable currencies,
the decline would have been 6.9%.
* Operating profit EUR 12.0 (38.0) million, decline 68.5%.
* Earnings per share EUR 0.38 (1.56), decline 75.8%.
* Orders received: EUR 237.0 (247.9) million, decline 4.4%. Without QTT
acquisition EUR 230.2 (247.9) million, decline 7.1%
* Cash flow from business operations EUR -3.2 (32.2) million
* Consolidated liquid assets EUR 50.1 (103.4) million
The whole year numbers presented in the financial report have been audited.
1-12 1-12 Change 10-12 10-12 Change
2009 2008 (%) 2009 2008 (%)
(MEUR) (MEUR) (MEUR) (MEUR)
Group net sales 231.8 242.5 -4.4 80.4 77.6 3.6
Meteorology 80.8 64.9 24.6 27.5 21.2 29.7
Controlled Environment 49.2 54.3 -9.4 12.1 13.4 -9.6
Weather Critical Operations 101.8 123.3 -17.4 40.7 43.0 -5.3
Operating profit, Group 12.0 38.0 -68.5 7.3 14.0 -48.0
Meteorology 3.4 8.0 -57.0 3.0 2.9 0.2
Controlled Environment 3.4 8.4 -59.7 -1.5 1.0 -245.6
Weather Critical Operations 5.5 24.6 -77.6 6.1 11.2 -45.7
Eliminations and other -0.4 -3.0 -0.3 -1.2
Profit before taxes 10.1 38.9 -74.1 7.8 13.0 -40.2
Net profit 6.9 28.4 -75.8 5.1 10.4 -50.7
Orders received 237.0 247.9 -4.4 57.5 59.8 -3.8
Order book 95.5 90.3 95.5 90.3
Earnings per share 0.38 1.56 -75.8 0.28 0.57 -50.7
Return on equity (%) 3.7 15.5 3.7 15.5
Comments on the fourth quarter
Net sales in the fourth quarter were slightly higher year on year but the
operating profit was clearly lower than in 2008.
At the end of the year, Vaisala acquired Quixote Transportation Technologies
(QTT), a US based company specialized at roads business. The value of the deal
was USD 20 million. From QTT, the Vaisala 2009 financial report includes net
sales (EUR 0.4 million), operating profit (EUR 0.1 million), order book (EUR
6.8 million) and one-off extraordinary acquisition costs (EUR 0.7 million).
The order book remained strong, even though the number of orders received
declined year on year.
Overview of year 2009
Net sales and operating profit in 2009 declined year on year.
The result of the financial year was affected by lower gross profit, which was
due to declined net sales and tightened competition, some significantly higher
than anticipated project costs and some quality problems. The total one-off
impact of these was EUR 7.5 million. Additionally, costs incurred by the ongoing
development initiatives and the one-off costs of the QTT acquisition lowered the
result.
Net sales grew in the Americas region (+27%), whereas sales in the EMEA region
(-21.8%) and in APAC (-11.7%) declined. An exception was China, which grew by
14 percent.
Outlook
Instability of the global economy and shifts in the exchange rates are still
expected to affect Vaisala's business. Due to the structure of Vaisala's
customer base and the orders received, the company's market situation is
expected to remain mostly unchanged and the business stable in 2010.
Vaisala expects its net sales in 2010 to grow slightly from the preceding year.
Also profitability is expected to improve slightly. Strategic, growth oriented
efforts will continue and burden Group profitability also this year.
The QTT acquisition is not expected to have a significant impact on the
operating profit in 2010.
Seasonal fluctuation is typical of Vaisala's business, so the first quarter
appears to be moderate.
The long term business outlook has not changed and Vaisala is still committed to
continuing the implementation of its growth strategy.
President and CEO Kjell Forsén on Vaisala's result:
"The challenging global economic situation affected also Vaisala's business last
year. Even though net sales in the fourth quarter were record high, I cannot be
satisfied with the development of our sales nor with the profitability of our
business. At the end of the year, Vaisala's order book was thicker than the year
before, but order intake decreased toward the end of the year. Our efforts to
improve the delivery capability for higher volumes have been successful,
strengthening our position as the markets start to pick up.
As anticipated, Vaisala's profitability was affected by the large ongoing
development initiatives aiming at growth and improved quality and manufacturing
capability, and by the acquisition made at the end of the year. Our
profitability was also affected by increased price competition, costs of some
demanding delivery projects and quality problems.
To address the situation, we have initiated a quality assurance program. In
addition to that, we have launched a program to improve Vaisala's productivity.
The program will e.g. review the profitability of our offering, sourcing and
project activities.
I am especially pleased with the acquisition we made at the end of the year. We
acquired QTT, a US based company specialized in road weather and information.
The deal significantly strengthens our position in the global road weather
markets and provides us with new offering especially in the area of new
intelligent transportation systems.
We continue the execution of Vaisala's new strategy. This will require
significant investments. I believe that the timing for these investments is
right because they lay the foundation for future growth objectives and
strengthen our position as the leader in environmental measurement."
Market situation, net sales and order book
Instability of the global economy is now affecting Vaisala's business. In the
challenging economic situation Vaisala has nevertheless been able to retain its
market shares.
In the Controlled Environment business area, i.e. in the industrial segments,
the markets declined during 2009. The uncertain economic situation affects
purchasing decisions also in the Weather Critical Operations and Meteorology
business areas.
Vaisala Group's net sales declined by 4.4 percent year on year and totaled EUR
231.8 (242.5/2008; 224.1/2007) million. Net sales of the Meteorology business
area grew by 24.6 percent, whereas the net sales of Weather Critical Operations
declined by 17.4 percent and Controlled Environment by 9.4 percent. In
comparable currencies, Vaisala Group's net sales would have been down by 6.9
percent.
Operations outside Finland accounted for 97 (94) percent of net sales.
Net sales in euros increased by 27.0 percent in Americas, totaling EUR 94.3
(74.3) million. Net sales declined by 21.8 percent in the EMEA region to EUR
84.9 (108.5) million and in the APAC region by 11.7 percent to EUR 52.6 (59.6)
million. In comparable currencies, the changes in net sales would have been
Americas +20.9%, EMEA -20.9% and APAC -15.5%.
The value of orders received declined by 4.4 percent year on year and totaled
EUR 237.0 (247.9/2008; 228.5/2007) million. Orders received include the order
book from the acquired QTT company, in total EUR 6.8 million of new orders. The
comparable value of orders received declined by 7.1 percent to EUR 230.2
million. The order book stood at EUR 95.5 (90.3) million at the end of the
financial year. Of the order book, approximately EUR 16 million will be
delivered in 2011 or later.
Performance and balance sheet
Operating profit for the financial year was EUR 12.0 (38.0) million or 5.2
percent of net sales. Profit before taxes was EUR 10.1 (38.9) million or 4.3
percent of net sales, down by 74.1 percent. Net profit for the financial year
was EUR 6.9 (28.4) million or 3.0 percent of net sales, down by 75.8 percent.
Vaisala Group's solvency ratio and liquidity remained strong. On December
31, 2009, the balance sheet total was EUR 231.4 (241.7/2008; 225.6/2007)
million. The Group's solvency ratio at the end of the financial year was 81%
(82%/2008; 83%/2007).
Vaisala's consolidated liquid assets totaled EUR 50.1 (103.4/2008; 99.2/2007)
million.
Investments
Gross capital expenditure totaled EUR 27.7 (12.2/2008; 7.3/2007) million.
On January 1, 2009, Vaisala acquired all shares of Aviation System Maintenance
Inc (ASMI), a US-based airport service company. The company has 10 employees and
the net sales for 2009 were EUR 1.0 million and operating profit EUR 0.1
million. ASMI, which is located in Kansas, has a large customer base and over
25 years of experience in the installation and maintenance of airport weather
equipment. The acquisition will considerably strengthen Vaisala's position as a
supplier of maintenance services in the US airport weather business,
complementing the existing service contracts and expertise. These synergy
benefits have accrued to EUR 1.3 million goodwill. The deal price was EUR 2.2
million, which includes a conditional EUR 0.4 million deal price. This
conditional price will be paid at the end of 2010, provided that the agreed
performance expectations are met.
On 18 December 2009, Vaisala acquired Quixote Transportation Technologies, Inc
(QTT), a subsidiary of Nasdaq-listed Quixote Corporation with sales of USD 16.2
million and approximately 100 employees in 2009. Net sales of the acquired
business during 19 - 31 December 2009 were EUR 0.4 million and operating profit
EUR 0.1 million.
Had the acquisition taken place on January 1, 2009, Vaisala group's net sales in
the financial year would have been EUR 248 million and net profit EUR 7.9
million. QTT complements Vaisala's Roads segment offering and application
knowledge, enabling the delivery of more complete solutions and customer
service. QTT's offering of road and runway weather information, highway advisory
radio, and traffic monitoring systems will significantly strengthen Vaisala's
position in the Roads markets and open up new opportunities especially in the
ITS (intelligent transportation systems) markets. The acquired new customer base
together with the synergy benefits accrue to goodwill of EUR 2.8 million.
The gradual implementation of Vaisala's new ERP system continues according to
the plan during this and next year.
The project to build new office space in Vantaa, Finland, is progressing
according to plans. The old building was torn down during the second quarter of
2009, the excavation work started in the third quarter of the year and the
construction of the new building frame in the fourth quarter.
Changes in financial reporting
Vaisala published its new strategy in November 2008. Going forward, the Group
will focus on markets with the biggest growth potential in the environmental
measurement business. The Group will seek growth from the current and new market
segments. Vaisala also announced that it adopts a market segment based reporting
model. From the first interim report in 2009, Vaisala Group's business will be
reported in three segments, which are Meteorology, Weather Critical Operations
and Controlled Environment. From the beginning of 2009, the Group adopted the
amended IAS 1 Presentation of the Financial Statements standard and IFRS 8
Operating Segments standard. The amended standards have no significant impact on
the presentation of the interim and financial reports.
Meteorology
Meteorology consists of Emerging markets and Established markets. The
Meteorology business area serves national meteorological and hydrological
institutes, whose primary interest is to provide national weather information
and forecasts.
Net sales of Meteorology grew by 24.6 percent year on year to EUR 80.8 (64.9)
million. In comparable currencies, the net sales would have grown by 21.3
percent. Operating profit for the review period was EUR 3.4 (8.0) million.
Vaisala participated in a large windpofiler renewal project for the US National
Weather Service and delivered one wind profiler to the customer for pilot use in
the third phase of the project. Larger than expected project costs burdened the
operating profit of this business area in the financial year by approximately
EUR 3.0 million.
Disruptions in radiosonde production affected the operating profit by
approximately EUR 2.2 million during the financial year. These disruptions had
no impact on net sales. Implementation of corrective measures has already
started. Weather radar deliveries and other delivery projects burdened the
operating profit by approximately EUR 2.3 million.
The value of orders received for Meteorology was EUR 76.4 million and the order
book stood at EUR 36.6 million at the end of the review period.
In the second quarter, the modernization project for the Russian weather
observation network was completed.
Japan Meteorological Agency ordered 10 sounding stations for their national
upper air network. The order marked an important step in the Japanese markets;
after its delivery, the majority of Japanese sounding stations use Vaisala's
equipment.
Vaisala and the US National Oceanic and Atmospheric Administration (NOAA) signed
a five-year contract in the second quarter, according to which Vaisala will
deliver next generation GPS-dropsondes to the US National Hurricane Center to
enable hurricane reconnaissance, research and storm track forecasting. The
estimated value of the deal is USD 9.2 million
Deliveries of six new weather radars to the Turkish met office started in the
fourth quarter. Of these, the first two radars will be taken into use in early
2010. Additionally, a comprehensive weather radar update was provided for the
Malaysian met office in the fourth quarter.
Finnish Meteorological Institute took two new dual polarization weather radars
into use, one in Kaivoksela and another one in Anjalankoski.
In Germany, in addition to the three previous ones, a fourth wind profiler was
distributed to Deutscher Wetterdienst in the fourth quarter.
Controlled Environment
Controlled Environment consists of Cleanrooms and Chambers, Building Automation
and Targeted Industrial Applications segments. This business area includes
customers who operate in tightly controlled and demanding areas where the
measurement of precise environmental conditions is required to increase
operational quality, productivity and energy savings.
Net sales of Controlled Environment declined by 9.4 percent year on year to EUR
49.2 (54.3) million. In spite of declined net sales, Vaisala has been able to
maintain its market shares. In comparable currencies, the net sales would have
been down by 13.3 percent. Operating profit for the review period was EUR 3.4
(8.4) million.
The value of orders received for Controlled Environment was EUR 49.0 million the
order book stood at EUR 3.3 million at the end of the review period.
Weather Critical Operations
Weather Critical Operations consists of Airports, Roads, Defense, Wind Energy
and Targeted Business Development segments. This business area focuses on
customers whose operations or businesses are affected by the weather, like
aviation customers, road authorities, defense forces and wind parks.
Net sales of Weather Critical Operations declined by 17.4 percent year on year
to EUR 101.8 (123.3) million. In comparable currencies, the net sales would have
been down by 18.9 percent. Operating profit for the review period was EUR 5.5
(24.6) million.
The challenging economic situation affected the customers' purchasing decisions
in this business area. Also, lack of larger individual projects lowered the
sales.
The value of orders received for Weather Critical Operations was EUR 111.6
million and the order book stood at EUR 55.6 million at the end of the review
period.
Disruptions in radiosonde production in the third quarter and the related
scrapping costs burdened the operating profit of the Weather Critical Operations
business area by approximately EUR 0.2 million. The situation did not affect the
sales in 2009.
The deliveries of weather radar signal processors and weather observation
systems for airports that were pending from the first quarter were completed
during the second quarter.
In the first quarter, Vaisala signed a contract with a long standing customer
for upper-air sounding equipment. The contract was valued at USD 8.6 million
and the deliveries are expected to take place by the end of the first quarter in
2010.
Vaisala announced in the third quarter that it is, together with US National
Center for Atmospheric Research (NCAR) and Xcel Energy, piloting a new
observation and forecasting system for wind energy.
Vaisala's new runway visual range system was approved by FAA (Federal Aviation
Authority) for air traffic control use in the USA in the fourth quarter. The
availability of runway visual range information has a positive impact on flight
safety and airport capacity. FAA approval also increases the potential for
additional business and strengthens Vaisala's ability to respond to large scale
turn-key programs.
Other functions
Research and development
Expenditure in research and development totaled EUR 28.4 (24.6/2008; 23.5/2007)
million, representing 12.2% of the Group's net sales.
The share of research and development expenses of the Group's net sales will
remain high in 2010. This is due to some extraordinary efforts aiming at aligned
technology platforms and improved product modularity, usability and mass
customization capability.
Vaisala launched 17 new products, solutions or services in 2009, covering all
Vaisala product areas and market segments. The most significant were:
Vaisala Barometric Pressure Transfer Standard PTB330TS for reference measurement
in field inspection and laboratory use.
Vaisala OMT364 for oxygen measurement in hazardous industrial processes.
Vaisala Global Lightning Dataset GLD360, a service provided by Vaisala that
provides real-time lightning data anywhere in the world. The dataset provides
information over oceanic and data-sparse regions where there is a shortage of
real-time weather observations.
Vaisala Sigmet RVP900 signal processor. The RVP900 signal processing platform is
used in Vaisala's weather radars, wind profilers and lightning detection
equipment.
Vaisala Sounding equipment: RS92-D radiosonde for defense customers and the
related upgrade kits for the RT20 systems. Vaisala BUFR Generator for older
generation of Vaisala Ground Equipment.
Vaisala TLP, Total Lightning Processor, for lightning detection. TLP improves
location accuracy of precision lightning detection networks through the use of
Vaisala's patented location algorithm.
Vaisala FALLS (Fault Analysis and Lightning Location System), which provides
electric utility engineers the ability to quickly and easily perform fault
correlations with lightning events.
Reference radio sonde, which enables more accurate observations for climate
change monitoring. The project will be carried out in co-operation with the
international science community. The device will provide extremely accurate
climatological information from the upper atmosphere.
Services
Starting in 2009, Vaisala's service business has been reported as part of the
business areas. Services sales in the review period totaled EUR 28.1 (27.5)
million.
In January 2009, Vaisala acquired Aviation Systems Maintenance Inc. (ASMI) to
strengthen its airport weather service offering. The integration of ASMI's
operations to Vaisala was completed on July 1, 2009.
Personnel
The average number of people employed in the Vaisala Group in the financial year
was 1 302 (1 177/2008; 1 113/2007). 44 percent (39/2008; 39/2007) of the
personnel was based outside Finland. 22 percent (20/2008; 21/2007) of the
employees worked in research and development.
Salaries paid by the company are based on local collective and individual
agreements, individual performance and the demand level of each job. The base
salaries are supplemented by results-based bonus systems, which cover all
Vaisala personnel. The total sum of salaries and bonuses paid in 2009 was EUR
60.8 million (59.7/2008; 57.2/2007).
Vaisala has two incentive plans; one based on the development of sales and
profitability and covering all employees, and the other, three-year plan, based
on the development of profitability and covering key personnel.
Changes in the company's management
MSc Timo Raikaslehto was appointed Senior Vice President, Group Marketing and
Sales and a member of the strategic management group starting March 1, 2009. He
resigned from Vaisala in January 2010.
PhD John Jiang was appointed President of Vaisala China and a member of the
strategic management group starting January 1, 2010.
Vaisala's Chief Technology Officer (CTO) Ari Meskanen was appointed Senior Vice
President, Group Marketing and Sales starting January 1, 2010. He continues in
the role of CTO until a successor has been found.
Risk management
Organization of risk management
Vaisala has a risk management policy that has been approved by the Board of
Directors and that covers the company's strategic, operating and financing
risks. Vaisala's strategic management group regularly assesses risk management
policies, and the scope, adequacy and focus areas of related practices. The
policy aims at ensuring the safety of the company's personnel, operations and
products as well as the continuity of operations. The policy also covers
intellectual capital, corporate image and brand protection. An appropriate and
up-to-date risk concept is integrated into decision-making and included in the
business plan.
More detailed operational instructions are defined by the strategic management
group. These include approval, bidding and procurement authorizations and terms
of payments.
Usual risks related to international business affect Vaisala's operating
environment. The most significant of these are risks relating to changes in the
global economy, currency exchange rates (with particular respect to the U.S.
dollar), supply network management and production activities. Vaisala monitors
these risks and prepares for them in accordance with the company's risk
management policy.
Group-level insurance programs have been established to deal with manageable
operating risks. These programs cover risks relating to property damage,
business interruption, different liabilities, transport and business travel.
Vaisala's ability to tolerate risks is good and the company has a strong capital
structure, ensuring capital adequacy.
Vaisala's risks are described in more detail in the Board of Directors' report
2009 which will be published on week 10 in March 2010.
Near-term risks and uncertainties
The near term risks and uncertainties are estimated to relate to changes in the
global economy, shifts of currency exchange rates, interruptions in
manufacturing, project delivery capabilities, customers' financing capability,
changes in purchasing or investment behavior, and delays or cancellations of
orders and deliveries. The biggest risks in realization of net sales relate to
the industrial segments which are more sensitive to economic fluctuations and
where the demand has clearly slowed down. The share of these segments is
approximately 25 percent of Vaisala's net sales. Additionally, cancellations or
delays of project deliveries that have been planned to take place this year may
affect the net sales and operating profit.
Changes in subcontractor relations, their operations or operating environment
may have a negative impact on Vaisala's business. Vaisala monitors these risks
and prepares for them in accordance with the company's risk management policy.
Vaisala is currently implementing significant development projects and
organizational changes, which lay the foundation for the execution of Vaisala's
new strategy. A new Group-wide enterprise resource planning system is also under
development. These efforts constitute a short-term risk regarding Vaisala's net
sales and result.
Vaisala has made acquisitions and their impact on net sales and operating profit
depends essentially on the success of integration activities. In case the
assumptions about achievable synergies prove incorrect or the integration
activities fail, they constitute a short-term risk regarding Vaisala's net sales
and result.
Vaisala's shares
As at the end of the review period, the Group's Board of Directors had no valid
authorizations for increasing the share capital, granting special rights, or
issuing stock option rights.
On December 31, 2008, the price of Vaisala's A share in the NASDAQ OMX Helsinki
Oy was EUR 22.11, and at the end of the review period, the share price was EUR
25.10. The highest quotation during the review period was EUR 28.46 and the
lowest EUR 20.80. The number of shares traded in the stock exchange during the
review period was 1,729,224.
On December 31, 2009, Vaisala had 18,218,364 shares, of which 3,397,684 are
series K shares and 14,820,680 are series A shares. The shares have no counter
book value. The K shares and A shares are differentiated by the fact that each K
share entitles its owner to 20 votes at a General Meeting of Shareholders while
each A share entitles its owner to 1 vote. The A shares represent 81.4% of the
total number of shares and 17.9% of the total votes. The K shares represent
18.6% of the total number of shares and 82.1% of the total votes.
The market value of Vaisala's A shares on December 31, 2009 was EUR 371,8
million, excluding the Company's own shares. Valuing the K shares - which are
not traded on the stock market - at the rate of the A share's closing price on
the final day of the financial year, the total year-end market value of all the
A and K shares together was EUR 457.1 million, excluding the Company's own
shares.
Vaisala's main shareholders are listed on the Group website and in the Notes to
the Financial Statements.
The shares give equal rights to dividends. According to the company's Articles
of Association, the maximum number of shares is 68,490,017 and Vaisala's maximum
share capital is EUR 28.8 million. All issued shares have been fully paid for.
The shares have no consent or redemption clauses attached to them.
According to the Articles of Association, a K share can be converted into an A
share in the manner specified in the Articles.
The number of shares held and controlled by Vaisala Corporation's Board of
Directors on December 31, 2009 was 1,353,425; accounting for 15.6% of the total
votes (2008: 1,353,425 shares and 15.6% of the total votes). The company's
President and CEO owned 2720 shares.
Conversion of unlisted series K shares into series A
Vaisala Corporation's 500 unlisted shares (series K) were converted into listed
shares (series A). The conversion was registered in the Finnish Trade Register
on March 5, 2009. Listing of the new series A shares was applied for as of March
6, 2009.
Vaisala Corporation's 6000 unlisted shares (series K) were converted into listed
shares (series A). The conversion was registered in the Finnish Trade Register
on May 14, 2009. Listing of the new series A shares was applied for as of May
15, 2009.
Vaisala Corporation's 1400 unlisted shares (series K) were converted into listed
shares (series A). The conversion was registered in the Finnish Trade Register
on November 19, 2009. Listing of the new series A shares was applied for as of
November 20, 2009.
Treasury shares and parent company shares
At the end of the financial year, the Company held a total of 9,150 Vaisala A
shares, which represented 0.05% of the share capital and 0.01% of the votes. The
consideration paid for these shares was EUR 251,898.31.
Board of Directors
Members of the Board
In accordance with Vaisala Corporation's Articles of Association, the company's
Board of Directors comprises at least three (3) and at most six (6) members.
According to current practice, the Board comprises six members. All Board
members are appointed by a General Meeting of Shareholders. The Board elects a
Chairman and a Vice Chairman from among its members.
Term of office of members of the Board
In deviation from recommendation no. 10 of the Finnish Corporate Governance
Code, the term of office of members of the Board is not one year. Instead, the
term of office is 3 years, as stipulated in the Articles of Association. The
term of office begins after the General Meeting of Shareholders at which the
member is elected, and ends at the close of the third Annual General Meeting
that follows the member's election.
Independence of the Board members
Evaluated against the criteria given in Recommendation 15, all six members of
the Board of Directors are independent of the company. Evaluated against the
criteria given in Recommendation 15, Yrjö Neuvo, Stig Gustavson, Mikko
Niinivaara and Maija Torkko are independent of both the company and the
shareholders. Evaluated against the criteria given in Recommendation 15 Raimo
Voipio and Mikko Voipio are dependent of significant shareholders. The current
composition of the Board of Directors fulfills the independence requirements
stated in the Recommendation 14.
President and CEO
Vaisala's President and CEO is appointed by the Board. The President and CEO
manages the company in accordance with the instructions and orders given by the
Board, and informs the Board of the development of the company's business and
financial situation. The President and CEO is also responsible for arranging the
company's management.
Events relating to the permanent group of insiders
No loans were granted to any of the persons belonging to the permanent group of
insiders, and no contingent liabilities were made on their behalf.
Proposals to the Annual General Meeting
The Board of Directors' proposal for the distribution of profit
According to the financial statements for the year to December 31, 2009, the
parent company's distributable funds amount to EUR 130,537,792.12, of which the
profit for the financial year is EUR 6,617,173.40.
The Board of Directors propose to the Annual General Meeting that the
distributable funds be used as follows:
- A dividend of EUR 0.65 per share be paid, totaling EUR 11.841.936.60
- To be retained in shareholders' equity EUR 118,695,855.52
Total EUR 130,537,792.12
No material changes have occurred in the company's financial situation since the
end of the financial year. The company's liquidity remains good and, in the view
of the Board, is not threatened by the proposed profit distribution.
The record date for dividend payment has been set at March 30, 2010, and it is
proposed that the dividend be paid on April 8, 2010.
The terms of office of Board members Maija Torkko and Yrjö Neuvo will end at the
Annual General Meeting. Shareholders representing more than 10 percent of all
the votes in the company have announced their intention to propose to Vaisala's
Annual General Meeting, to be held on March 25, 2010, that the number of Board
members will be six. The Board proposes that Maija Torkko and Yrjö Neuvo be
re-elected.
The Board proposes that PricewaterhouseCoopers Oy, Authorized Public
Accountants, and Hannu Pellinen, APA, be re-elected as Vaisala's auditor.
The proposed persons and auditor have given their consent to their re-election.
The Board of Directors proposes that the General Meeting authorize donations of
maximum EUR 250,000 to one or more universities. The donations would be granted
in one or several payments. According to the proposal, the Board of Directors
are authorized to decide on the recipients and the payments they receive. The
authorization would be in force until the 2011 Annual General Meeting.
Events after the financial year
Petteri Naulapää was appointed Chief Information Officer (CIO) and a member of
the strategic management group starting February 16, 2010. Jussi Kallunki,
Vaisala's previous CIO, was appointed Chief Risk Officer.
Vantaa, February 19, 2010
Vaisala Corporation
Board of Directors
Publishing of Financial Statements
Printed Financial Statements for 2009, the online annual report and the
corporate governance statement will be published on week 10 in March 2010.
Annual General Meeting documentation
Documents relating to financial statements as well as the Annual General Meeting
documentation will be available on March 4, 2010 at the company's head office in
Vantaa, Vanha Nurmijärventie 21. On request, copies will be sent to
shareholders. The material will also be available on www.vaisala.com
<http://www.vaisala.com/>/investors on March 4, 2010 the latest.
The forward-looking statements in this release are based on the current
expectations, known factors, decisions and plans of Vaisala's management.
Although the management believes that the expectations reflected in these
forward-looking statements are reasonable, there is no assurance that these
expectations would prove to be correct. Therefore, the results could differ
materially from those implied in the forward-looking statements, due to for
example changes in the economic, market and competitive environments, regulatory
or other government-related changes, or shifts in exchange rates.
Financial indicators 1-12 1-12 10-12 10-12
2009 2008 2009 2008
Return on equity (ROE) 3.7% 15.5% 3.7% 15.5%
Number of shares (1000 pcs) 18,209 18,209 18,209 18,209
Number of chares (1000 pcs), weighted average 18,209 18,209 18,209 18,209
Adjusted number of shares (1000 pcs) 18,209 18,209 18,209 18,209
Earnings/share (EUR) 0.38 1.56 0.28 0.57
Earnings/share (EUR),fully diluted 0.38 1.56 0.28 0.57
Net cash flow from operating activities/share
(EUR) -0.17 1.77
Equity/share (EUR) 9.90 10.47 9.90 10.47
Solvency ratio 81 % 82 % 81 % 82 %
Gross capital expenditure (EUR Million) 27.7 12.2 14.9 4.4
Depreciation 9.6 8.2 2.5 2.2
Average personnel 1,302 1,177 1,341 1,205
Order book (EUR Million) 95.5 90.3 95.5 90.3
Liabilities from derivative contracts 15.8 14.8 15.8 14.8
The interim report has been prepared in accordance with the IAS 34 following the
same accounting principles as in the annual financial statements. The whole year
numbers presented in the financial report have been audited.
From the beginning of 2009, the Group adopted the amended IAS 1 Presentation of
the Financial Statements standard and IFRS 8 Operating Segments standard. The
amended standards have no significant impact on the presentation of the interim
report.
CONSOLIDATED INCOME STATEMENT (IFRS, EUR Million)
1-12 1-12 Change 10-12 10-12 Change
2009 2008 % 2009 2008 %
Net sales 231.8 242.5 -4.4 80.4 77.6 3.6
Cost of production and procurement -121.1 -105.1 15.3 -42.5 -33.6 26.8
Gross profit 110.7 137.4 -19.4 37.8 44.0 -14.1
Other operating income 0.1 0.1 56.3 0.0 0.0 1700.0
Cost of sales and marketing -48.6 -51.5 -5.7 -14.6 -15.8 -7.6
Development costs -28.4 -24.6 15.7 -9.3 -7.0 33.6
Other administrative costs -21.8 -23.4 -6.6 -6.6 -7.2 -8.0
Operating profit 12.0 38.0 -68.6 7.3 14.0 -48.0
Financial income and expenses -1.9 0.9 -315.6 0.5 -1.1 -145.9
Share of results of associated
companies 0.0 0.0 -100.0 0.0 0.0 -93.9
Profit before tax 10.1 38.9 -74.1 7.8 13.0 -40.2
Income taxes -3.2 -10.5 -69.5 -2.6 -2.6 1.7
Profit after tax 6.9 28.4 -75.8 5.1 10.4 -50.7
Attributable to Equity holders of
the parent 6.9 28.4 -75.8 5.1 10.4 -50.7
Taxes for the review period have been calculated
under taxes.
Earnings per share for profit attributable to the equity
holders of the parent
Basic earnings per share, € 0.38 1.56 -75.8 0.28 0.57 -50.7
Diluted earnigns per share,€ 0.38 1.56 -75.8 0.28 0.57 -50.7
STATEMENT OF COMPREHENSIVE INCOME
Profit for the year 6.9 28.4 -75.8 5.1 10.4 -50.7
Other comprehensive income
Exchange differences on translating
foreign operations -0.8 1.3 -160.9 0.5 0.5 15.9
Total comprehensive income 6.1 29.7 -79.6 5.7 10.9 -47.9
Total comprehensive income
attributable to:
Equity holders of the parent 6.1 29.7 -79.6 5.7 10.9 -47.9
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (EUR
million) 31.12.2009 31.12.2008 Change
%
ASSETS
NON-CURRENT ASSETS
Intangible assets 23.7 17.3 36.8
Tangible assets 49.8 39.1 27.5
Investments in associates 0.5 0.6 -18.5
Other financial assets 0.1 0.1 -28,9
Long-term receivables 0.3 0.1 198.9
Deferred tax assets 5.7 5.8 -1.7
CURRENT ASSETS
Inventories 27.3 22.8 20.1
Trade and other receivables 67.9 51.7 31.1
Accrued income tax receivables 6.2 0.8 628.5
Financial assets recognized at fair value through
profit and loss 0.0 25.3 -100.0
Cash and cash equivalents 50.1 78.1 -35.9
TOTAL ASSETS 231.4 241.7 -4.3
SHAREHOLDERS' EQUITY AND LIABILITIES
Equity attributable to equity holders of the
parent
Share capital 7.7 7.7 0.0
Share premium reserve 16.6 16.6 0.0
Reserve fund 0.2 0.2 -4.0
Translation differences -4.8 -4.1 17.3
Profit from previous years 154.0 142.1 8.4
Own shares -0.3 -0.3 0.0
Profit for the financial year 6.9 28.4 -75.8
Total equity 180.3 190.6 -5.4
Liabilities
Long-term liabilities
Retirement benefit obligations 1.2 1.4 -13.5
Interest-bearing liabilities 0.7 0.2 235.3
Provisions 0.1 0.5 -83.4
Deferred tax liabilities 0.3 0.4 -26.9
Current liabilities
Current interest-bearing liabilities 0.3 0.2 35.4
Advances received 10.2 10.3 -1.0
Accrued income tax payables 0.3 1.8 -82.4
Trade and other payables 38.0 36.2 4.9
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES 231.4 241.7 -4.3
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
December 31, 2009 (EUR million)
Share
Share Share premium Reserve Own Translation Retained Total
capital issue Resesrve fund shares differences earnings equity
Balance at 7.7 0.0 16.6 0.2 -0.3 -4.1 170.4 190.6
December 31,
2008
Total
comprehensive
income for
the year 0.0 -0.8 6.9 6.1
Dividend paid -16.4 -16.4
Balance at
December
31, 2009 7.7 0.0 16.6 0.2 -0.3 -4.9 160.9 180.3
Share
Share Share premium Reserve Own Translation Retained Total
capital issue Resesrve fund shares differences earnings equity
Balance at
December
31, 2007 7.7 0.0 16.6 0.1 -0.3 -5.4 157.6 176.3
Total
comprehensive
income for
the year 0.0 1.3 28.4 29.7
Other changes 0.1 -0.1 0.0
Dividend paid -15.5 -15.5
Balance at
December
31, 2008 7.7 0.0 16.6 0.2 -0.3 -4.1 170.4 190.6
CONSOLIDATED CASH FLOW STATEMENT (EUR million)
1-12 1-12 Change
2009 2008 %
Cash flows from operating activities
Cash receipts from customers 225.7 241.4 -6.5
Other income from business operations 0.0 0.1 -100.0
Cash paid to suppliers and employees -218.0 -197.6 10.3
Interest received 1.0 0.0 5020.4
Interest paid -0.1 -0.2 -41.7
Other financial items, net -1.4 0.9 -255.7
Direct tax paid -10.3 -12.5 -17.0
Cash flow from business operations (A) -3.2 32.2 -109.8
Cash flow from investing activities
Investments in intangible assets -1.3 -0.5 188.5
Investments in tangible assets -13.7 -12.0 14.5
Acquisition of subsidiary, net of cash acquired -16.7 0.0
Proceeds from sale of fixed assets 0.1 0.2 -57.6
Other investments -0.1 -0.2 -53.1
Financial assets recognised at
fair value through profit and loss 23.2 17.3 34.1
Cash flow from investing activities (B) -8.5 4.9 -275.0
Cash flow from financing activities
Repayment of short-term loans -0.1 0.0
Repayment of long-term loans 0.0 0.1 -100.0
Dividend paid and other distribution of profit -16.4 -15.5 5.9
Cash flow from financing activities (C) -16.5 -15.4 7.5
Change in liquid funds (A+B+C) increase (+) / decrease
(-) -28.2 21.7 -229.8
Liquid funds at beginning of period 78.1 56.7 37.8
Foreign exchange effect on cash 0.2 -0.3 -172.9
Net increase in cash and cash equivalents -28.2 21.7 -229.8
Liquid funds at end of period 50.1 78.1 -35.9
Segment Report
Business segments
1-12/2009 WCO * CEN * MET * Other operations Group
EUR Million
Net sales to external customers 101.8 49.2 80.8 0.0 231.8
Net sales 101.8 49.2 80.8 0.0 231.8
Operating profit 5.5 3.4 3.4 -0.4 12.0
Financial income and expenses -1.9
Share of associated companies' net
profit 0.0
Net profit before taxes 10.1
Income taxes -3.2
Net profit 6.9
Depreciation 0.8 0.1 1.4 7.3 9.6
* WCO= Weather critical operations
* CEN = Controlled environment
* MET= Meteorology
1-12/2008 WCO * CEN * MET * Other operations Group
EUR Million
Net sales to external customers 123.3 54.3 64.9 0.0 242.5
Net sales 123.3 54.3 64.9 0.0 242.5
Operating profit 24.6 8.4 8.0 -3.0 38.0
Financial income and expenses 0.9
Share of associated companies' net
profit 0.0
Net profit before taxes 38.9
Income taxes -10.5
Net profit 28.4
Depreciation 0.7 0.1 1.2 6.2 8.2
* WCO= Weather critical operations
* CEN = Controlled environment
* MET= Meteorology
10-12/2009 WCO * CEN * MET * Other operations Group
EUR Million
Net sales to external customers 40.7 12.1 27.5 0.0 80.4
Net sales 40.7 12.1 27.5 0.0 80.4
0.0 0.0 0.0 0.0 0.0
Operating profit 6.1 -1.5 3.0 -0.3 7.3
Financial income and expenses 0.5
Share of associated companies' net
profit 0.0
Net profit before taxes 7.8
Income taxes -2.6
Net profit 5.1
Depreciation 0.2 0.0 0.3 1.9 2.5
* WCO= Weather critical operations
* CEN = Controlled environment
* MET= Meteorology
10-12/2008 WCO * CEN * MET * Other operations Group
EUR Million
Net sales to external customers 43.0 13.4 21.2 0.0 77.6
Net sales 43.0 13.4 21.2 0.0 77.6
Operating profit 11.2 1.0 2.9 -1.2 14.0
Financial income and expenses -1.0
Share of associated companies' net
profit 0.0
Net profit before taxes 13.0
Income taxes -2.6
Net profit 10.4
Depreciation 0.2 0.0 0.3 1.7 2.2
* WCO= Weather critical operations
* CEN = Controlled environment
* MET= Meteorology
+----------------------------------------+----+----+
|Contingent liabilities and pledges given|2009|2008|
+----------------------------------------+----+----+
|EUR million | | |
+----------------------------------------+----+----+
|For own loans/commitments | | |
+----------------------------------------+----+----+
|Guarantees |13,5|13,0|
+----------------------------------------+----+----+
|Other own liabilities | | |
+----------------------------------------+----+----+
|Pledges given | 0,4| 0,1|
+----------------------------------------+----+----+
|Other leases | 6,9| 8,1|
+----------------------------------------+----+----+
|Contingent liabilities and pledges | | |
+----------------------------------------+----+----+
|given, total |20,8|21,2|
+----------------------------------------+----+----+
Other leases include long-term realestate rental agreements and operating lease
agreements. Lease- and rental agreements comply with the normal terms in each
country.
Calculation of financial indicators
Shareholders' equity plus minority
interest
Solvency ratio, (%) = --------------------------------------- x 100
Balance sheet total less advance payments
Profit before taxes less taxes
+/- minority interest
Earnings / share = ---------------------------------------
Average number of shares, adjusted
Cash flow from business operations
Cash flow from business = ---------------------------------------
operations / share Number of shares at balance sheet date
Shareholders' equity
Equity / share = ---------------------------------------
Number of shares at balance sheet date,
adjusted
Dividend
Dividend / share = ----------------------------------------
Number of shares at balance sheet date,
adjusted
Further information:
Jouni Lintunen, CFO
Tel +358 9 8949 2215, mobile +358 40 579 0181
www.vaisala.com
Vaisala Corporation
Distribution:
NASDAQ OMX Helsinki Oy
Finnish News Agency
Other key media
[HUG#1386367]
