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2014-04-23

Vacon Oyj: Vacon Plc Interim report 1 January - 31 March 2014

Vacon Plc, Stock Exchange Release,23 April 2014
at 9.30 am (EET)

In this stock exchange release Vacon is publishing information included in the
interim report that has a significant impact on the value of securities. The
full interim report is in the appendix to this release and can be downloaded
from the company's website in Finnish at www.vacon.fi and in English
atwww.vacon.com.

January-March highlights:

* Order intake totalled MEUR 104.8 (MEUR 100.2, an increase of 4.6% on the
corresponding period in the previous year.
* Revenues totalled MEUR 89.3 (MEUR 91.3), a decline of 2.3% from the
corresponding period in the previous year.
* Operating profit was MEUR 6.7, or 7.5% of revenues (MEUR 5.8 and 6.3%).
* Net cash flow from operating activities was MEUR -0.6 (MEUR 16.6).
* Earnings per share were EUR 0.16 (EUR 0.12).
* The Annual General Meeting resolved to increase the number of shares in the
Company by issuing new shares without payment to the shareholders in
proportion to their holdings, so that one (1) share is given for each
existing share. The figures presented in the interim report, apart from the
dividend, have been adjusted to bring them in line with the situation after
the issue of shares without payment (share split). The new shares
registered in connection with the share split did not entitle holders to
the dividend for the 2013 fiscal year decided on at the AGM.
* The AGM adopted the proposal of the Board of Directors to pay a dividend of
EUR 1.30 a share, in total MEUR 19.8. The dividend was paid on 8 April
2014.
* At its organizational meeting after the AGM, the Board of Directors elected
Panu Routila as Chairman and Jari Eklund as Vice Chairman of the Board.

January-March key indicators:

--------------------------------------------------------------------------------
|MEUR 1-3/2014 1-3/2013 Change, % 1-12/2013 |
|Order intake 104.8 100.2 4.6% 399.8 |
|Order book 62.4 58.9 5.9% 46.8 |
|Revenues 89.3 91.3 -2.3% 403.0 |
|Operating profit 6.7 5.8 16.0% 40.6 |
|% of revenues 7.5% 6.3% 10.1% |
|Profit before taxes 6.7 6.0 10.7% 39.7 |
|Net cash flow from operating activities -0.6 16.6 46.7 |
|Earnings per share, EUR 0.16 0.12 27.9% 0.92 |
|Interest-bearing net liabilities -10.0 -21.1 -52.4% -17.2 |
|Gearing, % -10.0% -22.2% -14.7% |
|Gross capital expenditure 4.8 4.2 14.2% 19.7 |
--------------------------------------------------------------------------------

President and CEO Vesa Laisi: Order intake increased in the first quarter

"I am particularly satisfied with the way Vacon personnel succeeded in getting
order intake back on a growth track during the first quarter. This places us
in a good position for increasing revenues in 2014.

The volume of orders received increased in the January-March 2014 period 4.6%
from the corresponding period in the previous year and 19.6% from the final
quarter in 2013. We cannot be satisfied with how revenues developed in the
first quarter. The main reason for the slight fall in revenues was the low
order intake in the final quarter of 2013. Profitability improved from the
corresponding period in the previous year. The low level of revenues did
however have a negative impact on profitability.

In January 2014 we launched the new VACON®NXP System Drive product range,
which expands our product offering for system integrators. The new product
range of standardized AC drives offers customers cost-efficiency, reliability
and uniform quality. Our strong, continuously upgraded product offering
creates outstanding potential for further raising our market share.

Early in 2014 we had the honour of welcoming special guests to Vacon, when
President Barack Obama and US Secretary of Energy Ernest Moniz visited our
R&D center in Research Triangle Park in North Carolina. The visit was part of
the president's tour of North Carolina. This brought Vacon excellent
visibility in North America.

Vacon's new vision, The Drives Family, was created together with personnel in
2013. We have started to introduce the new vision within our own organization
and stakeholders. Our unique corporate culture is one of our success factors
and nurturing this is one of our most important goals."

Prospects for 2014

Market research institute IHS estimates that the AC drive market is growing at
an average rate of 7% in the period 2012-2017. Global megatrends, such as
urbanisation, increase in industrial automation, energy efficiency,
developing markets and renewable energy, all support growth in the AC drive
market. Growth in the AC drive market varies from year to year, and even from
one quarter to another, but as a general rule it is estimated that the AC
drive market grows much faster than global average growth in gross national
product.

There are uncertainties relating to general developments in the market in
2014. Vacon estimates that the AC drive market will grow some 5-10% in 2014,
depending on general developments in the market. During the past few years
the Company has expanded and renewed its product offering, which places the
Company in a strong position to grow faster than the AC drive market in 2014.
The orders received in the January-March period support growth in the
Company's revenues during the remainder of the year.

Vacon's goal is to improve profitability in 2014. Key factors contributing to
an improvement in profitability are the cost benefits from transferring
material sourcing to lower cost countries and raising overall efficiency in
operations.

Market guidelines for 2014

Vacon is retaining the market guidelines it published earlier and estimates
that its revenues will increase 5-15% and its operating profit percentage
excluding one-time items will be 11-13% in 2014.

Revenues in 2013 totalled EUR 403.0 million and the operating profit
percentage excluding one-time items was 10.1%.

Vacon's financial targets for the period 2014-2020

Growth: The target is to achieve an average annual revenue growth of over 10%.
The growth target is based on growing the business organically in a market
environment where the AC drives market grows clearly faster than the average
Gross Domestic Product (GDP). Selective acquisitions can be used to further
accelerate the growth.

Profitability: The long-term profitability target is to achieve a sustainable
EBIT margin level of 14%. Vacon focuses on growth and on measures that
improve the company's efficiency in the long term and thus deliver a higher
absolute EBIT and shareholder value.

Vacon does not consider the long term financial targets as market guidance for
any given year during the period 2014-2020. It will issue separate market
guidance annually.

Financial reports in 2014

Vacon is publishing two interim reports in 2014 as follows:

* January-June: Wednesday, 30 July at 9.30 am
* January-September: Wednesday, 22 October at 9.30 am

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 30
countries. Further, Vacon has sales representatives and service partners in
nearly 90 countries. In 2013, Vacon's revenues amounted to EUR 403.0 million,
and the company employed globally approximately 1,600 people. The shares of
Vacon Plc (VAC1V) are quoted on the main list of the Helsinki stock exchange
(NASDAQ OMX Helsinki).

Driven by Drives, www.vacon.com

Vaasa, 23 April 2014

VACON PLC

Board of Directors

For more information please contact:

* Vesa Laisi, President and CEO, Vacon Plc, phone +358 (0)40 8371 510,
vesa.laisi(at)vacon.com
* Ann-Louise Brännback, CFO, Vacon Plc, phone +358 40 8371 376,
ann-louise.brannback(at)vacon.com
* Sebastian Linko, Director, Corporate Communications and Investor Relations,
Vacon Plc, phone +358 (0)40 8371 634, sebastian.linko(at)vacon.com

Conference for media and analysts

A briefing for the financial analysts and media will be held on 23 April 2014
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 for investors and investment analysts will be held at
3.00 pm on 23 April 2014. President and CEO Vesa Laisi, CFO Ann-Louise
Brännback and Director, Corporate Communications and Investor Relations
Sebastian Linko will participate in the conference. Please call (Finland Toll
+358(0)9 6937 9543) or (UK Toll +44(0)20 3427 1901) and request to be
connected to the Vacon call (Confirmation code 3132678). A recording of the
conference will be available for seven days at (Finland Toll +358 (0)9 2310
1650) or (UK Toll +44 (0)20 3427 0598) and access code 3132678#.

* Webcast URL:http://www.media-server.com/m/p/koxa3h3h

The presentation material will be available before the start of the briefing
at the Vacon's website www.vacon.com>Investors>Reports and presentations.

Distribution:

NASDAQ OMX Helsinki
Financial Supervisory Authority
Main media

ATTACHMENTS

Vacon Plc Interim Report January-March 2014 with tables
http://hugin.info/132524/R/1778884/607641.pdf
Vacon Interim Report Q1/2014 Results Presentation
http://hugin.info/132524/R/1778884/607653.pdf

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This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Vacon Oyj via Globenewswire

HUG#1778884

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