Vaisala's strategy and long-term financial targets

May 17th 2017
Stock Exchange Releases

Vaisala Corporation
Stock Exchange Release
May 17, 2017 at 9:00 a.m.

Vaisala's strategy and long-term financial targets

Vaisala's Board of Directors has confirmed strategy for 2017-2021. Vaisala continues to drive profitable growth through implementation of strategic priorities. Consequently, Vaisala has decided to rename its business areas to better describe their current and future business focus. Controlled Environment Business Area is renamed to Industrial Measurements Business Area and Weather Business Area is renamed to Weather and Environment Business Area.

Industrial Measurements Business Area continues to further accelerate growth through product leadership strategy. Business Area's strategic priorities are to achieve strong foothold in power transmission and life science markets, to continuously create new winning products by discovering customers' needs, and to seek new business opportunities in industrial applications.

Weather and Environment Business Area drives profitability and growth through expansion of industry-leading products and digital solutions. Business Area's strategic priorities are: to systematically improve competitiveness by renewal of product offering; to grow through meteorological infrastructure improvement projects in developing countries; to expand digital solutions, which support decision-making in weather critical operations; as well as to build new business in environmental measurements with air quality as a spearhead.

Vaisala Operations continues to develop excellence in high mix low volume supply chain through further development of Vaisala Production System. Foundation of the Production System is creation of a culture, which engages everyone to systematic improvement. Operations has also strategic development priorities to increase productivity, to develop core production technologies, as well as sourcing and product life cycle management processes.

Vaisala's long-term financial targets
Vaisala's objective is profitable growth with an average annual growth of 5%, and to achieve 15% operating profit margin (EBIT). In selected growth businesses, such as digital solutions, life science and power transmission, the target is to exceed 10% annual growth.

Vaisala does not consider the long-term financial targets as market guidance for any given year.

Vaisala's Capital Markets Day
Vaisala will host Capital Markets Day 2017 at Vaisala's head office on June 13, 2017. At the event, Vaisala's top management will provide an update on the company's strategic direction, development projects and near-term business priorities. Further information about the Capital Markets Day is available at www.vaisala.com/investors.

For more information, please contact
Kjell Forsén, President and CEO
Tel. +358 9 8949 2202

Kaarina Muurinen, CFO
Tel. +358 40 577 5066

Distribution
Nasdaq Helsinki
Key media
www.vaisala.com

Vaisala is a global leader in environmental and industrial measurement. Building on 80 years of experience, Vaisala contributes to a better quality of life by providing a comprehensive range of innovative observation and measurement products and services for chosen weather-related and industrial markets. Headquartered in Finland, Vaisala employs approximately 1,600 professionals worldwide and is listed on the Nasdaq Helsinki stock exchange. www.vaisala.com      www.twitter.com/VaisalaGroup