Valmet Automotive’s Annual Review 2020: Good performance and solid strategy execution despite extraordinary circumstances

Net sales of EUR 494.0 million, operating profit 4.4% of net sales

Valmet Automotive’s net sales from continuing operations were EUR 494.0 (595.6 in 2019) million, which was 17% lower than in the previous year. Sales including all invoiced components were EUR 2.4 (2.9) billion. The operating profit from continuing operations was EUR 21.7 (27.0) million, or 4.4% of net sales (4.5%). The profitability decreased only slightly despite the substantially negative impact of the corona pandemic during the year and especially during the second and third quarters. Good profitability was maintained with efficient and swift corona countermeasures and a good overall performance in all business lines during the financial year. Vehicle Manufacturing profitability continued at a good level despite the pandemic impact and lower production volumes compared to the previous year. EV Systems full year net sales grew strongly, and profitability increased from the previous year while the operating profit exceeded the break-even level during the second half of the year. Roof & Kinematic Systems net sales decreased clearly but the operating profit remained positive.

Positive cash flow after investments maintained

Cash flow after investments was EUR 12.0 (40.9) million. Investments made according to plan consisted of replacement investments, development investments and investments into new production lines especially in EV Systems. Significant investments in battery production lines were continued at the Salo, Finland plant and started at the Uusikaupunki, Finland plant. Furthermore, investments in battery testing were continued in Germany.

Strong performance during an extraordinary year

The year 2020 was eventful due to the extraordinary external circumstances and the company internal developments. Despite the corona pandemic related disturbances to operations, Valmet Automotive’s good profitability and strategic transformation continued.

• Valmet Automotive’s year 2020 included investments into battery testing capacity, divestment of general automotive engineering services and expansions of battery system production facilities. Valmet Automotive has made the passenger car a leading Finnish export product and intends to elevate battery systems to the same position, says Jarkko Sairanen, Chairman of the Board, Valmet Automotive.

Positive long-term outlook strengthened

• In 2020, Valmet Automotive continued its operational improvements and strengthened its market position with several new program awards from our customers. Health and safety of our personnel is the number one priority for us, and we have been pro-active in measures against the corona virus. In concerted efforts the Group and every location prepared and implemented actions to ensure a safe workplace for all employees, and consequently, the virus has not caused chains of infection at our locations. Our most important asset is the highly skilled, agile and innovative personnel, who made the great achievements of 2020 possible, says Olaf Bongwald, CEO, Valmet Automotive.

Financial statements

The company prepares its financial statements in accordance with International Financial Reporting Standards (IFRS). During the report year, Valmet Automotive divested its general automotive engineering services business in Germany and Spain. These operations are classified as discontinued operations in the financial statements and previous year comparison data has been restated accordingly.

Valmet Automotive’s consolidated financial statements are available at the company website.