CEO's review

The net sales of the Vaisala Group grew over 8 percent in 2008 to EUR 242.5 million. The strongest growth was in Asia-Pacific where net sales grew nearly 28 percent. The company's result was burdened by ongoing development projects. The unfavorable exchange rates also had an impact on the result. Of the business areas, Vaisala Measurement Systems, Vaisala Instruments and Vaisala Solutions all increased their net sales, whereas the Services business was affected by personnel and infrastructure-related development costs.

Year of renewal and growth

We completed the new customer-driven strategy, and the organization and operating model aligned with it. The renewal was announced in November 2008 and the new organization became operational at the beginning of 2009. The most significant difference between the old and the new strategy is the change from a product-driven to a market-driven model.

I am extremely satisfied with the fact that despite the challenging economic situation and the unfavorable shifts of currency exchange rates, Vaisala has managed to maintain its strong market position and grow its net sales. Our strong order backlog will ensure a good start for 2009. The global economic recession has not yet affected us significantly, but we are monitoring the developments very closely.

Our customers, especially in the weather businesses, are mostly publicly funded which means slower and more moderate changes. This is why we expect the market situation to remain largely unchanged in 2009. We expect our growth to continue, but uncertainty regarding the end of the year has increased.

We continue to resolutely execute our new strategy, which will require significant investments. I am, however, confident that Vaisala will be able to further strengthen its position as the world leader in environmental measurement.

Thanks

I would like to express my warm thanks to Vaisala personnel for their excellent results. They have once again demonstrated their competence and commitment. I would also like to thank Vaisala’s customers and partners for their confidence in us.

Kjell Forsén
President and CEO