Vacon presented its strategy and vision to become a leader in AC drives by 2020. It aims to grow faster than the market and maintain solid profitability through initiatives like expanding into system drives and medium voltage drives. Vacon will focus solely on low and medium voltage drives and leverage its expertise in AC drives applications. It will optimize sales channels and operations to efficiently capture growth while retaining strong margins and profitability through 2020 and beyond.

1. 1

2. Agenda

3. Create the future – Vacon
targets, strategy and vision
Vesa Laisi, CEO and President
Vacon 20/20 Capital Markets Day, 28 Nov 2013
1

4. 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.

5. Demand for AC drives is driven
by global megatrends
3

6. Total Market Outlook 2020

7. We have four fundamental
strategic choices
100% focus on low
and medium
voltage drives and
inverters
Multiple
customer
industries
Multi-channel
sales
5

8. Competitive advantage is based
on 100% focus on AC drives
6

9. We grow faster than the market
and with solid profitability

10. Our growth initiatives

11. Our drivers for profitability

12. The Vacon vision
We see that true value is created
together. That is why we will create The
Drives Family where the best people
work together to develop the best
products, applications and services for
our customers.
Vacon will be a company that brings
together personnel, customers,
partners, suppliers, shareholders,
scholars and students – all the people
who are Driven by Drives.
We grow faster than the market and
with solid profitability. This allows us to
invest in the future growth and to share
the value within The Drives Family.

13. Accelerated growth through
new initiatives
Heikki Hiltunen, EVP, Market Operations
Vacon 20/20 Capital Markets Day, 28 Nov 2013
1

14. 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.

15. Total Market Outlook 2020

16. Market outlook solid for motor
drives 2011–2017

17. Channel selection optimized
country by country
5

18. Underlying megatrends driving
the growth for Vacon AC Drives

19. Competitive landscape

20. Growth initiatives
8

21. Vacon growth initiatives market operations

22. 10

23. Vacon
11

27. Cloud based services – opening
up the opportunities for
application and SW sales
15

28. Vacon sales & marketing –
driving growth towards 2020

29. Focus on broad portfolio
and effective operations
Jukka Kasi, Executive Vice President,
Product Operations
Vacon 20/20 Capital Markets Day, 28 Nov 2013

30. 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.

33. Regional production is supported
by best cost country sourcing
5

34. Our current production capacity
enables growth to 700 MEUR

35. Mass-customization is crucial to
manage complexity
7

36. Broad offering based on
common technology
8

37. Suppliers – key players in
The Drives Family
9

38. PCBA, semiconductors and inductive
material – the main reasons for
success
10

39. Broad product portfolio to meet
diversified customer needs
11

40. Our growth initiatives

41. Entering system drives
business
●
With 20 years of experience
in the AC drives business,
Vacon has now developed a
Vacon System Drive, making
Vacon one of the key players
in the enclosed drives
●
Easy to use for System
Integrators, our products
allow them to bring more
value to customers

42. Our initial focus in system
drives
14

43. Entering the medium voltage drives
business
Dan Isaksson, Vice President,
Medium Voltage Drives
1

44. 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.

45. Entering medium voltage drives
business
In a good position to capture
MV drives growth
The medium voltage market
is growing
● Competitive advantage
through established
strategy
● Leverage know-how of AC
drives and applications
● Leverage existing offering
and technology
● Sales, marketing and
service globally for existing
and new customers
3

46. Initial market focus in medium
voltage drives

47. Growing faster than the
market with solid
profitability
Pia Aaltonen-Forsell, CFO
Vacon 20/20 Capital Markets Day, 28 Nov 2013
1

48. 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

49. Total Market Outlook 2020
3

50. Revenues and EBIT-%
without one-time items
*) 2012 Ebit margin, % restated
4

51. We will retain our sales margin
with cost efficiency and right
positioning in the market
5

52. We will retain strong profitability
and maintain our growth ability
6

53. R&D investments crucial for our
future growth
7

54. Capex has varied between
3.5%–6.5% of revenues
8

55. We have room to improve
9

56. Improved inventory turnover and
delivery capability
10

57. Working capital efficiency
target below 11%
11

58. Our strong balance sheet gives
us flexibility for the future
12

59. We develop our operating model to
ensure scalability and profitable
growth
13

60. IT to enable growth and
efficiency
14

61. Alliances and acquisitions can be
used to boost time-to-market and
growth
15

62. We grow faster than the market
and with solid profitability
16