Financial Information

Vaisala Group's business is reported in two business areas:

• Weather and Environment Business Area and
• Industrial Measurements Business Area.

The following geographical areas are the secondary reporting segments:

• Americas
• Europe, Middle East and Africa (EMEA)
• Asia Pacific (APAC)

Vaisala’s consolidated financial statements have been prepared according to the International Financial Reporting Standards (IFRS) and in their preparation all the obligatory IAS and IFRS standards as well as the SIC and IFRIC interpretations in effect on December 31, 2013 have been followed. By international financial statement standards is meant standards approved for application in the EU, and interpretations issued about them, according to the procedure prescribed in Finnish law and provisions enacted thereon in EU Regulation (EC) No. 1606/2002. The notes to the consolidated financial statements are also in accordance with Finnish accounting and corporate law.

Financial statement data are presented in millions of euros and they are based on original acquisition costs if not otherwise stated in the accounting principles outlined below.

The preparation of financial statements in accordance with IFRS standards requires Group management to make certain estimates and to exercise discretion in applying the accounting principles. Information about the discretion exercised by management in applying the accounting principles followed by the Group and that which has most impact on the figures presented in the financial statements has been presented in the item ‘Accounting principles that require management discretion and main uncertainty factors relating to estimates’.

ALTERNATIVE PERFORMANCE MEASURES

Vaisala presents in its financial reporting alternative performance measures, which describe businesses’ financial performance and its development as well as investments and return on equity. In addition to accounting measures which are defined or specified in IFRS, alternative performance measures complement and explain presented information. Vaisala presents in its financial reporting the following alternative performance measures: