For Valmet Automotive, the year 2022 was eventful both due to the continuing extraordinary external circumstances and internal developments. Component shortages affected all business lines and led to unplanned production suspensions. Despite the challenges in the current business environment, the Group continued to strengthen its position as an industry leader for electromobility and sustainability.
Gross sales* of EUR 2.8 billion, net sales of EUR 604 million and operating profit 5.2% of net sales
During the financial year, the Group’s gross sales from continuing operations amounted to EUR 2,841.9 (2,977.5) million, a decrease of 4.6% compared to the year earlier. The net sales from continuing operations were EUR 603.5 (570.2) million, which was 5.8% higher than the year earlier. In Electric Vehicle Systems (EVS) and Roof & Kinematic Systems (RKS), gross and net sales increased significantly because of volume increases of existing products and new customer programs in production for the full year. In Vehicle Contract Manufacturing (VCM), gross and net sales decreased due to the planned ending of the Mercedes-Benz GLC production. The Group's operating profit amounted to EUR 31.3 (35.6) million, a decrease of 12.2% compared to the previous year, or 5.2% (6.2%) of net sales.
Growth investments focused on EVS
Investments made according to plan related mainly to growth in EVS and replacement, productivity, and flexibility in VCM and RKS. Investments in battery production continued at the Salo and Uusikaupunki, Finland plants as well as at the Kirchardt, Germany plant. Furthermore, investments in battery testing in Germany and in the company’s own Modular Battery Platform product family were continued.
The Group’s cash flow after investments was EUR -56.8 (-7.2) million, the decrease in cash flow being due to fluctuations in working capital and somewhat higher investments in continuing operations compared to the year earlier.
Valmet Automotive been committed to carbon neutrality since the beginning of 2022. Its commitment is validated by DNV granting the Group a PAS 2060 certificate.
The Group’s sustainability strategy is translated into concrete environmental actions through the True Green Initiative. This is a two-year, company-wide practical guide to integrate “green thinking” – considering environmental aspects across all operations and actions – into Valmet Automotive’s organizational culture at all levels.
Valmet Automotive has defined the activities for the upcoming EU Taxonomy climate mitigation and adaptation reporting regulations and is in the process of identifying the taxonomy eligibility and alignment of the activities, assessing impacts and consequences for the business.
The Group publishes annually a Sustainability Report based on GRI Standards.
Strategic transformation sustained
– 2022 was another year of accelerating expansion of electric mobility. Valmet Automotive proved its strategically optimal position in this change, with all our business lines involved in e-mobility and with no legacy business. Electrification is the driver of the company’s future growth, which was especially visible in the battery systems operations in 2022. The EVS business line was founded in 2019, and now Valmet Automotive is already a leading European manufacturer of electric vehicle battery systems, with an increasing focus on the system supplier role. Valmet Automotive will continue implementing its strategy and making its three business lines into three strong pillars to support the Group, each making further headways into solutions and services of electrification, says Jarkko Sairanen, Chairman of the Board, Valmet Automotive.
Strong performance despite various challenges
– The operating environment of Valmet Automotive continued turbulent throughout 2022, yet we performed strongly in all business lines and achieved a great result that is due to the commitment and skills of our personnel. The rapid growth of EVS, supported by consistent results of the other business lines, shows the considerable potential of the Group as an industry leader for electromobility. We predicted a challenging year, but the outcome provides a steady foothold for the plans we have for 2023, says Olaf Bongwald, CEO, Valmet Automotive.
As announced in October 2022, Juha Torniainen, the Group’s CFO, is leaving Valmet Automotive and his successor Petra Teräsaho has taken over as the new CFO as of March 1, 2023.
– I would like to thank Juha for the great work he has done for Valmet Automotive over the past years and his significant contributions to the transformation of the company and implementation of the EV growth strategy. I welcome Petra to the Group leadership team and wish her all the best as our CFO, says Olaf Bongwald.
The company prepares its financial statements in accordance with International Financial Reporting Standards (IFRS).
* Gross sales are presented as an alternative performance measure. It is defined as total (gross) sales including both net sales and sales of customer-directed materials and parts. Customer-directed materials and parts are materials that are purchased from the principal or from suppliers selected by the principal at prices negotiated by the principal.
Valmet Automotive’s consolidated financial statements are available on the Group’s website.