Vacon Plc Interim Report 1 January - 30 June 2012


Vacon Plc, Stock Exchange Release, 1 August 2012 at 9.30 am

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 %.

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, %|1-12/2011|
+----------------------------------------+--------+--------+---------+---------+
|Order intake                            |   205.8|   204.6|    0.6 %|    365.3|
+----------------------------------------+--------+--------+---------+---------+
|Order book                              |    58.7|    54.5|    7.6 %|     36.6|
+----------------------------------------+--------+--------+---------+---------+
|Revenues                                |   183.7|   202.2|   -9.1 %|    380.9|
+----------------------------------------+--------+--------+---------+---------+
|Operating profit                        |    16.6|    20.4|  -18.5 %|     24.7|
+----------------------------------------+--------+--------+---------+---------+
|% of revenues                           |   9.0 %|  10.1 %|         |    6.5 %|
+----------------------------------------+--------+--------+---------+---------+
|Operating profit excluding one-time     |        |        |         |         |
|items                                   |    13.9|    20.9|         |     34.8|
+----------------------------------------+--------+--------+---------+---------+
|% of revenues                           |   7.6 %|  10.3 %|         |    9.1 %|
+----------------------------------------+--------+--------+---------+---------+
|Profit before taxes                     |    16.3|    20.5|         |     27.0|
+----------------------------------------+--------+--------+---------+---------+
|                                        |        |        |         |         |
|Net cash flow from operating activities |    19.8|     0.8|         |     26.8|
+----------------------------------------+--------+--------+---------+---------+
|                                        |        |        |         |         |
|Earnings per share, EUR                 |    0.74|    0.93|         |     1.10|
+----------------------------------------+--------+--------+---------+---------+
|                                        |        |        |         |         |
|Interest-bearing net liabilities        |    12.9|    31.5|         |     12.4|
+----------------------------------------+--------+--------+---------+---------+
|Gearing, %                              |  13.5 %|  26.8 %|         |   12.7 %|
+----------------------------------------+--------+--------+---------+---------+
|Gross capital expenditure               |        |        |         |         |
|                                        |     6.6|    10.1|  -35.1 %|     18.7|
+----------------------------------------+--------+--------+---------+---------+


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.

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).

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



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


[HUG#1630996]

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