Vacon Oyj : Vacon Plc Financial Statement Bulletin 1 January - 31 December 2012

  Vacon Oyj : Vacon Plc Financial Statement Bulletin 1 January - 31 December

Vacon Plc, Stock Exchange Release, 5 February 2013 at 9.30 pm (EET)

In this stock exchange release Vacon is publishing information that has a
significant impact on securities included in the financial statements. The
full financial statements are in the appendix to this release and can be
downloaded from the company's website in English at and in
Finnish at

October-December summary:

  oOrder intake totalled MEUR 94.4 (MEUR 76.9), an increase of 22.8 % from
    the corresponding period in the previous year.
  oRevenues totalled MEUR 103.2 (MEUR 87.6), growth of 17.8 %.
  oOperating profit was MEUR 10.9, or 10.6 % of revenues, (MEUR -3.9 and -4.4
  oOperating profit excluding one-time items was MEUR 12.1, or 11.7 % of
    revenues (MEUR 5.7 and 6.5 %).
  oNet cash flow from operating activities was MEUR 15.1 (MEUR 6.2).
  oEarnings per share were EUR 0.50 (EUR -0.18).

January-December summary:

  oOrder intake totalled MEUR 401.9 (MEUR 365.3), an increase of 10.0 % from
    the corresponding period in the previous year.
  oRevenues totalled MEUR 388.4 (MEUR 380.9), growth of 2.0 %.
  oOperating profit was MEUR 37.7, or 9.7 % of revenues (EUR 24.7 and 6.5 %),
    an increase of 52.3 %.
  oOperating profit excluding one-time items was MEUR 36.2, or 9.3 % of
    revenues (MEUR 34.8 and 9.1 %).
  oNet cash flow from operating activities was MEUR 52.3 (MEUR 26.8).
  oEarnings per share were EUR 1.70 (EUR 1.10), growth of 54.0 %.
  oThe Board of Directors proposes to the Annual General Meeting of
    Shareholders that a dividend of EUR 1.10 per share be paid from the profit
    for 2012.

Key indicators

October-December key indicators:

MEUR                                      10-12/2012 10-12/2011 Change, %
Order intake                                    94.4       76.9     22.8%
Revenues                                       103.2       87.6     17.8%
Operating profit                                10.9       -3.9
% of revenues                                  10.6%      -4.4%
Operating profit excluding one-time items       12.1        5.7    112.8%
% of revenues                                  11.7%       6.5%
Profit before taxes                             10.6       -1.4

January-December key indicators:

MEUR                                      1-12/2012 1-12/2011 Change, %
Order intake                                  401.9     365.3     10.0%
Order book                                     50.0      36.6     36.9%
Revenues                                      388.4     380.9      2.0%
Operating profit                               37.7      24.7     52.3%
% of revenues                                  9.7%      6.5%
Operating profit excluding one-time items      36.2      34.8      4.0%
% of revenues                                  9.3%      9.1%
Profit before taxes                            36.8      27.0     36.5%
Net cash flow from operating activities        52.3      26.8     95.0%
Earnings per share, EUR                        1.70      1.10     54.0%
Return on equity, %                           25.8%     18.7%
Interest-bearing net liabilities              -10.3      12.4
Gearing, %                                    -9.5%     12.7%
Gross capital expenditure                      14.0      18,7    -25.3%

Business environment and business development

According to initial market surveys and in Vacon's assessment, the AC drive
market did not grow significantly during 2012. The situation was most
difficult in Europe, where the market even declined from the previous year.
The markets in Asia and North America grew slightly from the previous year.

Vacon's revenues and orders increased in both the October-December quarter and
the January-December 2012 full year compared to the periods for comparison in
the previous year. The company's sales increased in 2012 especially in
building automation and the marine industry. In contrast sales for the
generation of solar energy and wind power fell sharply, accounting for only 3
% of the company's revenues in 2012, compared to 13 % in 2011. During 2012
Vacon succeeded in compensating for the fall in the sales of products for
renewable energy generation by increasing its sales to other industrial
sectors, at the same time raising its market share.

Vacon's revenues increased sharply in October-December and January-December
2012 in the Asia Pacific region (APAC). Sales in North and South America also
developed positively both in the October-December period and for the whole of
2012. Sales in the Europe, Middle East and Africa (EMEA) region rose in
October-December, but declined slightly for the whole of 2012 as the result of
weak demand for products for renewable energy generation and the general state
of the economy in the region. Full year revenues in the EMEA region grew
slightly from the previous year, if renewable energy is not included.

The company's profitability measured in terms of the operating profit
percentage improved both in October-December and in January-December 2012.
Profitability improved particularly in the second half of 2012. Vacon carried
out several measures in 2012 to improve profitability. The most important of
these was the transfer of material sourcing to low-cost countries. Last year
50 % of material sourcing came from low-cost countries (40 % in 2011).

During the final quarter of the year Vacon continued its release of new
products with the launch of the VACON^® 100 Flow product, which is the latest
AC drive in the VACON^® 100 product range. It offers a wide range of flow
control functions for water and waste water treatment and for building
automation applications.

Vacon continued to strengthen its global standing in the fourth quarter of
2012 by establishing a regional centre in Singapore and a representative
office in Kazakstan.

Dividend proposal

At the end of the financial year the distributable equity of the parent
company stands at EUR 69.7 million. The Board of Directors proposes to the
Annual General Meeting of Shareholders to be held on 26 March 2013 that a
dividend of EUR 1.10 per share be paid from the parent company's profit for
the 2012 financial year of EUR 20.5 million and the remainder of the profit
for the year be transferred to retained earnings. According to this proposal,
a total of EUR 16.7 million would be paid in dividend.

Prospects for 2013

Vacon estimates that the global AC drive market will grow considerably faster
than average growth in industrial production, by an estimated 5-10 % in 2013.
Investments to improve energy efficiency and economic growth in developing
countries will support growth in demand for AC drives.

Vacon is well placed to improve its profitability in 2013. Key factors in
improving profitability are the cost benefit from transferring material
sourcing to low-cost countries and the development of overall efficiency in

Market guidelines 2013

Vacon will continue the practice of announcing its market guidelines for the
whole year in its financial statement bulletin and repeating them in its
interim reports. The guidelines will be updated if the need arises.

Vacon estimates that its revenues will increase 5 - 15 % and that its
operating profit percentage excluding one-time items will be 10 - 12 % in

Revenues in 2012 totalled EUR 388.4 million and the operating profit
percentage excluding one-time items was 9.3 %.

Vacon's goal is to achieve revenues of EUR 500 million in 2014. Its
profitability target for 2014 is an operating profit of 14 %, and for return
on equity the target is more than 30 %.

Financial reports in 2013

Vacon is publishing three interim reports in 2013 as follows:

  *January-March: 23 April 2013
  *January-June: 1 August 2013
  *January-September: 22 October 2013

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 provide customers with efficient
product lifecycle services. Our AC drives offer optimum process control and
energy efficiency for electric motors. Vacon inverters play a key role when
energy is produced from renewable sources. Vacon has production and R&D
facilities in Europe, Asia and North America, and sales offices in 29
countries. Further, Vacon has sales representatives and service partners in
nearly 90 countries. In 2012, Vacon's revenues amounted to EUR 388.4 million,
and the company employed globally approximately 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,

Vaasa, 5 February 2013


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

A briefing for the financial analysts and media will be held on 5 February
2013 at Pörssitalo, Fabianinkatu 14 A, 2nd floor, Helsinki (entrance via
NASDAQ OMX Helsinki's reception) at 11:30 am Finnish time (EET).

Dial-in conference for investors and investment analysts

A dial-in conference in for investors and investment analysts will be held at
3.00 pm (EET) on 5 February 2013. President and CEO Vesa Laisi and Eriikka
Söderström, CFO will participate in the conference. Please call +358(0)9 2310
1620 (Finland Toll) or +44(0)20 3364 5381 (UK Toll) and request to be
connected to the Vacon call (Confirmation code 7253849). A recording of the
conference will be available for seven days at (0)9 2310 1650 (Finland Toll)
or (0)20 3427 0598 (UK Toll) or 347 366 9565 (US Toll) and access code

  *Conference link:

The presentation material will be available before the media briefing on
Vacon's website at: > Investors > Publications and releases.


Financial Supervisory Authority
Main Media

Vacon Financial Statement 2012 Results Presentation
Vacon Plc Financial Statement Bulletin January-December 2012


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(i) the releases contained herein are protected by copyright and other
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information contained therein.

Source: Vacon Oyj via Thomson Reuters ONE
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