Despite the continued extraordinary external circumstances with the corona pandemic and component shortages, 2021 was a year of growth for Valmet Automotive in all business lines with the strongest growth in EV Systems. The most significant events of the year included several new customer contracts in all business lines, new production facilities and products in the EV Systems and the continued focus on sustainability and development activities.
Gross sales* of EUR 3.0 billion, net sales of EUR 570 million and operating profit 6.2 % of net sales
During the financial year, the Group’s gross sales from continuing operations amounted to EUR 2,977.5 (2,443.7) million, an increase of 21.8 %. The net sales from continuing operations were EUR 570.2 (494.0) million, 15.4 % higher than in the previous year. Gross and net sales increased in all business lines, with the strongest growth in EV Systems. The Group’s operating profit from continuing operations increased by 64.2 % to EUR 35.6 (21.7) million, or 6.2 % of net sales (4.4 %).
Growth investments focused on EV Systems
The Group’s cash flow after investments was EUR -7.2 (12.0) million. The decrease originated from higher investment activities. Gross investments in fixed assets totaled EUR 62.1 (39.2) million, consisting of replacement investments, development investments and investments into new production facilities and production lines especially in EV Systems. Battery production investments continued at the Salo and Uusikaupunki, Finland plants and started at the Kirchardt, Germany plant. Furthermore, investments in battery testing in Germany and in Valmet Automotive’s own Modular Battery Platform product family were continued.
During 2021, the Group’s sustainability actions focused on the mid-term sustainability strategy and program for 2027. Sustainability strategy includes the holistic view on sustainability and focuses on material topics of Environment, Social and Governance. Valmet Automotive is increasingly focusing on identification of climate-related risks and opportunities as well as human rights compliance in its supply chain. In addition, the Group is preparing for the EU Taxonomy regulations and identifying the related impacts and consequences for its business. The Group publishes annually a Sustainability Report based on GRI Standards.
Strategic transformation continued according to plan
– Valmet Automotive’s strategic transformation into e-mobility is progressing according to plan. During 2021, this was demonstrated by signing of three battery manufacturing contracts with major automotive OEMs, continued manufacturing and testing investments in Finland and Germany, and nomination by Lightyear to produce the Lightyear One exclusive series, a uniquely designed electric vehicle with integrated solar cells. In addition, the Group introduced its own Modular Battery Platform product, an electrification solution to off-highway, truck & bus OEMs and integrators. Valmet Automotive has made the passenger car a leading Finnish export product and is elevating battery systems to the same position, says Jarkko Sairanen, Chairman of the Board, Valmet Automotive.
Record performance in volatile environment
– In 2021, Valmet Automotive achieved its all-time high financial result owing to the continuous improvements made in the recent years. This financial result was accomplished while maintaining personnel health and safety as the number one priority. We continued pro-active measures against the Covid-19 virus. With extensive preparations and continuous follow-up, the virus has not caused infection chains at Valmet Automotive locations. Our most valuable contributor in our achievements in 2021 is the highly skilled and committed personnel, says Olaf Bongwald, CEO, Valmet Automotive.
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 company website.