Interim ReportJanuary–September 2017Vaisala CorporationOctober 23, 2017

Third Quarter 2017

2017-10-23 Interim Report January-September 20172

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Third quarter 2017 highlights

Orders received EUR 100.1 (76.6) million, +31% Order book EUR 145.0 (114.8) million, +26% Net sales EUR 87.1 (81.8) million, +6% Gross margin 52.8% (53.9%) Operating result* EUR 14.7 (5.3) million, 16.9%

(6.5%) of net sales Earnings per share EUR 0.59 (0.21) Cash flow from operating activities EUR 14.9

(10.0) million

2017-10-23 Interim Report January-September 20173

* Third quater included EUR 0.8 million cost related to transformation in Digital Solutions business in Weather and Environment Business Area.Comparison period included EUR 10.5 million write-down of intangible assets.

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Vaisala Q3 orders received increased 31% Orders received EUR 100.1 (76.6) million, +31%

The increase was strong in all geographical areas

Weather and Environment Business Area EUR 72.5 (48.5) million, +50% The increase was strong in all regions Orders included several large project orders

Industrial Measurements Business Area EUR 27.6 (28.1) million, -2% The decrease came from Americas

2017-10-23 Interim Report January-September 20174

40.9 50.1 48.566.5

52.0 53.072.5

23.926.8 28.1

26.529.5 28.2

27.6

0

20

40

60

80

100

120

Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17

Industrial MeasurementsWeather and Environment

MEUR

100.1

76.6

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Vaisala order book increased 26%

Order book EUR 145.0 (114.8) million, +26% The order book increased in all

geographical areas EUR 66.1 (53.7) million of the order book is

scheduled to be delivered in 2017 Weather and Environment Business Area

EUR 134.3 (106.4) million, +26% EUR 57.7 (47.2) million of the order book is

scheduled to be delivered in 2017 Industrial Measurements Business Area

EUR 10.7 (8.3) million, +28% EUR 8.4 (6.6) million of the order book is

scheduled to be delivered in 2017

2017-10-23 Interim Report January-September 20175

115.2 114.8 106.4 109.4 120.4 121.4 134.3

6.8 8.78.3 8.6

10.0 12.210.7

0

40

80

120

160

Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17

Industrial MeasurementsWeather and Environment

MEUR

145.0

114.8

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Vaisala Q3 project deliveries increased 51% y-o-y

2017-10-23 Interim Report January-September 20176

47.1 47.356.0 58.0

48.2 50.1 55.6

9.9 17.014.4

23.7

8.513.5

21.711.711.3

11.4

11.3

11.611.3

9.8

0

20

40

60

80

100

Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17

Products Projects Services

MEUR

64%

25%

11%

Products Projects Services

% of net sales Q3/2017

(68%)

(18%)

(14%)

87.181.8

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Balanced geographical split of net sales in Q3

2017-10-23 Interim Report January-September 20177

EUR million Q3/2017 Q3/2016 Change %

EMEA 29.6 23.1 28

Americas 31.7 35.4 -10

APAC 25.8 23.3 11

Total 87.1 81.8 6

34%

36%

30%

EMEA Americas APAC

% of net sales in Q3/2017

(28%)(29%)

(43%)

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Vaisala Q3 operating result 16.9% of net sales

2017-10-23 Interim Report January-September 20178

68.775.6

81.893.0

68.474.8

87.1

-1.0 3.4 5.314.6

2.6 5.114.7

-20

0

20

40

60

80

100

Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17

Net sales Operating result

MEURQ3/2017 Q3/2016Orders received, EUR million 100.1 76.6

Net sales, EUR million 87.1 81.8

Gross margin, % 52.8 53.9

Operating expenses, EUR million 30.5 40.1

Operating result, EUR million 14.7 5.3

Operating result, % 16.9 6.5

Weather and Environment

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Weather and Environment Q3 net sales increased by 6%

25.8 25.0 30.4 34.323.0 27.4 29.7

9.9 17.014.4

23.7

8.513.5

21.78.98.6 8.7

8.7

8.7

8.4

6.9

0

20

40

60

80

Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17

Products Projects Services

2017-10-23 Interim Report January-September 201710

MEUR

51%37%

12%

Products Projects Services

% of net sales in Q3/2017

(57%)(27%)

(16%) 58.353.4

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Weather and Environment Q3 operating result 12.3% of net sales

2017-10-23 Interim Report January-September 201711

Q3/2017 Q3/2016

Orders received, EUR million 72.5 48.5

Net sales, EUR million 58.3 53.4

Gross margin, % 47.1 50.7

Operating expenses, EUR million 20.4 30.3

Operating result, EUR million 7.1 -3.3

Operating result, % 12.3 -6.1

44.750.6 53.4

66.7

40.3

49.3

58.3

-1.9 -0.9 -3.3

9.5

-4.0 1.17.1

-10

10

30

50

70

Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17

Net sales Operating result

MEUR

Industrial Measurements

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Industrial Measurements Q3 net salesincreased 2%

2017-10-23 Interim Report January-September 201713

21.3 22.325.7 23.7 25.2 22.6

25.9

2.7 2.72.7

2.62.9

2.92.9

0

5

10

15

20

25

30

35

Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17

Products Services

MEUR

90%

10%

Products Services

% of net sales in Q3/2017

(10%)

(90%)

28.828.4

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Industrial Measurements Q3 operating result 29% of net sales

2017-10-23 Interim Report January-September 201714

Q3/2017 Q3/2016

Orders received, EUR million 27.6 28.1

Net sales, EUR million 28.8 28.4

Gross margin, % 64.2 60.3

Operating expenses, EUR million 10.1 9.7

Operating result, EUR million 8.3 7.4

Operating result, % 29.0 26.2

24.0 25.028.4

26.4 28.125.5

28.8

4.9 4.37.4

4.9 6.43.7

8.3

0

10

20

30

40

Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17

Net sales Operating result

MEUR

January–September 2017

2017-10-23 Interim Report January-September 201715

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January–September 2017 highlights

Orders received EUR 262.9 (218.3) million, +20% Net sales EUR 230.3 (226.0) million, +2% Gross margin 52.2% (51.4%) Operating result EUR 22.4 (7.7*) million Earnings per share EUR 0.86 (0.26) Cash flow from operating activities EUR

26.2 (17.1) million Cash and cash equivalents EUR 72.3 (49.9)

million, +45%

2017-10-23 Interim Report January-September 201716

* Comparison period included EUR 10.5 million write-down of intangible assets.

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Strong investment in R&D continued

2017-10-23 Interim Report January-September 201717

22.4 25.7 26.7 26.520.2

6.58.2 9.4 11.5

9.0

0

10

20

30

40

2013 2014 2015 2016 1-9/17

Industrial MeasurementsWeather and Environment

R&D expenses EUR 29.2 (27.9) million or 12.7% (12.3%) of net sales Weather and Environment 13.6% (13.2%) of net

sales Industrial Measurements 11.0% (10.6%) of net

sales

MEUR

29.2

38.0

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Cash flow from operating activities increased 53% y-o-y Cash flow from operations increased to EUR 26.2

(17.1) million as a result of increased EBITDA and positive working capital development

Cash and cash equivalents EUR 72.3 (49.9) million, +45%

Capital expenditure EUR 6.6 (6.2) million Depreciation, amortization and write-downs EUR

7.5 (21.3) million Dividend paid EUR 17.8 million Purchases of treasury shares EUR 0.8 million

during Q1

2017-10-23 Interim Report January-September 201718

28.223.8

38.8 41.8

26.2

0

10

20

30

40

50

2013 2014 2015 2016 1-9/17

MEUR

Market and Business Outlook

2017-10-23 Interim Report January-September 201719

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Market Outlook 2017 Vaisala is expecting moderate improvement

for weather observation market compared to previous year. Compared to previous year, growth in new orders and deliveries is expected in particular in Europe and Asia Pacific. Growth is driven by meteorology customer segment. Market development with transportation customer segment looks overall stable and demand for digital solutions is expected to grow modestly compared to previous year.

Industrial measurement market outlook continues to be favorable

2017-10-23 Interim Report January-September 201720

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Business Outlook 2017 unchanged Vaisala estimates its full year 2017 net sales to be in the range of EUR 310–340 million

and its operating result (EBIT) to be in the range of EUR 32–42 million.

2017-10-23 Interim Report January-September 201721

273.6

293.3

273.2

299.7

318.5 319.1

240

260

280

300

320

2011 2012 2013 2014 2015 2016

16.1

30.2

18.1

26.429.6

22.3

0

10

20

30

40

2011 2012 2013 2014 2015 2016

MEUR MEURNet sales Operating result

32.8*

* Excl. EUR 10.5 million write down of intangible assets from the acquisitions of Second Wind Systems Inc. and 3TIER Inc. in 2013.

Questions Welcome!

AppendixJanuary–September 2017 financials

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Vaisala January–September orders received increased 20% Orders received EUR 262.9 (218.3) million, +20%

The increase came from all geographical areas Weather and Environment Business Area

EUR 177.6 (139.5) million, +27% The increase came from all regions

Industrial Measurements Business Area EUR 85.3 (78.8) million, +8% The increase came from all regions, strongest in

APAC

2017-10-23 Interim Report January-September 201724

208.3 215.2 225.6 206.0 177.6

74.6 79.894.4 105.3

85.3

0

50

100

150

200

250

300

350

2013 2014 2015 2016 1-9/17

Industrial MeasurementsWeather and Environment

MEUR

262.9

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January–September sales mix unchanged

2017-10-23 Interim Report January-September 201725

EUR million 1-9/2017 1-9/2016 Change %

Products 153.9 150.3 2

Projects 43.7 41.4 6

Services 32.6 34.3 -5

Net sales, total 230.3 226.0 2

At comparable exchange rates 213.4 226.0 2

67%

19%

14%

Products Projects Services

% of net sales in 1-9/2017

(66%)

(18%)

(15%)

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Geographical split of Vaisala January–September net sales unchanged

2017-10-23 Interim Report January-September 201726

EUR million 1-9/2017 1-9/2016 Change %

EMEA 71.5 67.7 6

Americas 91.1 94.8 -4

APAC 67.7 63.5 7

Total 230.3 226.0 2

31%

40%

29%

EMEA Americas APAC

% of net sales in 1-9/2017

(30%)

(42%)

(28%)

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January–September operating result 9.7% of net sales

2017-10-23 Interim Report January-September 201727

30.2 18.1 26.4 29.6 22.3 22.40

5

10

15

20

25

30

35

2012 2013 2014 2015 2016 1-9/17

Operating result

MEUR Operating result EUR 22.4 (7.7) million or 9.7% (3.4%) of net sales Comparison period included EUR 10.5

million write-down of intangible assets Operating expenses EUR 97.8 (107.3) million

9.77.0

9.38.8

6.6

10.3

Operating result %

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Weather and Environment January–September net sales flat

2017-10-23 Interim Report January-September 201728

EUR million 1-9/2017 1-9/2016 Change %

Products 80.2 81.2 -1

Projects 43.7 41.3 6

Services 24.0 26.2 -9

Net sales, total 147.9 148.7 -1

At comparable exchange rates 148.4 148.7 0

54%30%

16%

Products Projects Services

% of net sales in 1-9/2017

(18%)

(55%)(28%)

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Weather and Environment January–September operating result 2.8% of net sales

2017-10-23 Interim Report January-September 201729

1-9/2017 1-9/2016

Orders received, EUR million 177.6 139.5

Net sales, EUR million 147.9 148.7

Gross margin, % 46.4 46.9

Operating expenses, EUR million 64.7 75.8

Operating result, EUR million 4.2 -6.1

Operating result, % 2.8 -4.1

44.750.6 53.4

66.7

40.3

49.3

58.3

-1.9 -0.9 -3.3

9.5

-4.0 1.17.1

-10

10

30

50

70

Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17

Net sales Operating result

MEUR

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Industrial Measurements January–September net sales increased 7%

2017-10-23 Interim Report January-September 201730

EUR million 1-9/2017 1-9/2016 Change %

Products 73.7 69.3 6

Services 8.7 8.1 7

Net sales, total 82.4 77.3 7

At comparable exchange rates 83.0 77.3 7 89%

11%

Products Services

% of net sales in 1-9/2017

(90%)

(10%)

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Industrial Measurements January–September operating result 22.4% of net sales

2017-10-23 Interim Report January-September 201731

1-9/2017 1-9/2016

Orders received, EUR million 85.3 78.8

Net sales, EUR million 82.4 77.3

Gross margin, % 62.8 60.4

Operating expenses, EUR million 33.3 30.0

Operating result, EUR million 18.5 16.7

Operating result, % 22.4 21.6

24.0 25.028.4

26.4 28.125.5

28.8

4.9 4.37.4

4.9 6.43.7

8.3

0

10

20

30

40

Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17

Net sales Operating result

MEUR

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Observations for a Better World

32 2017-10-23 Interim Report January-September 2017