Vaillant Group scores growth with heat pumps and digital solutions

Remscheid, 7 May 2018

• Sales revenues and EBIT in financial year 2017 tops previous year’s level – positive development in international markets

• Successful expansion of heat pumps business and digital solutions

• Good start in 2018: higher demand in all product segments

The heating, ventilation and air conditioning specialist Vaillant Group had a successful financial year 2017. Both in sales revenues and the operating earnings (EBIT), the Remscheid-based family-owned company topped the level of the previous year. During the course of the year the Vaillant Group sales revenues increased to € 2,360 million and thus by about 4 per cent compared to the previous year. Adjusted for currency exchange effects, the sales increase was 8 per cent. The operating earnings amounted to €232 million, corresponding to a plus of about 8 per cent. The positive business development was also contributed to by the successful expansion of the heat pumps business, the growth with digital products and services, and the company’s dynamic development in non-European growth markets. The start in the current financial year was also positive, with a distinct sales and earnings plus in the first quarter of 2018.

“In all, we can look back on an operationally and strategically successful financial year 2017,” commented Dr.-Ing. Norbert Schiedeck, Chairman of the Vaillant Group Management Board, on the company’s development. “We succeeded in realising our growth targets in a partly challenging business environment.“

Positive development in the international markets

Business in the growth market China, where the Vaillant Group achieved a clear increase in its sales revenues in the two-digit percentage area, was once again very positive. To this dynamic development contributed in particular the sales of high-quality gas-fired heating appliances, ventilation systems and accessories. The company also recorded a significant sales increase in Turkey, the Vaillant Group’s third-largest market. Thus, also in 2017 the major non-European markets of the Vaillant Group made an important contribution to its altogether positive business development. In Central Europe, the sales increase amounted to 3 per cent.

Successful expansion of the heat pumps business

Besides further internationalisation, the Vaillant Group also pushed ahead its market presence in the product segment of heat pumps and with systems based on renewable energies. “During the year, we gained additional market shares in the heat pumps business, doubled our production capacity and strengthened our sales activities,” said Dr.-Ing. Norbert Schiedeck. “In addition, we will further expand our product portfolio in the next two years in order to serve the growing customer demand in various market segments. Our aim is in the long term to take a market position with heat pumps that’s just as strong as our business with efficient gas technologies.”

Environmentally-friendly gas technologies an important pillar of the Vaillant Group

The important pillar of the Vaillant Group remains environmentally-friendly gas condensing technology. Condensing technology exploits the gas that is used as fuel optimally and it will also in future be an important part of the energy transition. Combined with smart controls, even further energy-saving potential can be realised with gas condensing technologies.

On a growth path with digital products and services

Extending the business with digital products and services had high priority. During the year the Vaillant Group significantly increased its sales of networkable products and further intensified its activities in the area of data-driven service and business models. Among other things, the sales growth of smart control technologies was more than 40 per cent above the previous year’s level. Another growth area is sales via digital channels. In Germany, more than 200 installers already use the Internet platform HeatingOnline. Also in other markets in Europe and China the relevance of digital sales channels for the Vaillant Group is continually increasing. In addition, at the beginning of 2018 the company introduced further digital service offers. They include mobile applications for service technicians for the fast capture and evaluation of heating appliance data as well as for the direct ordering and checking of the availability of spare parts.

Good start in 2018

At the beginning of financial year 2018 the positive development of 2017 continued. In the first quarter the sales and earnings were clearly above those of the same period in the previous year. This is to be attributed to the higher demand in all product segments.