Vaillant Group increases sales and earnings again in 2012

Düsseldorf/Remscheid, 13 May 2013

• Stable growth in Eastern Europe and China

• Positive developments in efficient technologies and service business

• Increased market share in core areas of business and future technologies

Remscheid-based heating, ventilation and air-conditioning technology specialist Vaillant Group grew further in the financial year 2012. In an economic environment affected by the euro crisis, sales revenues rose by around two per cent to €2.33 billion (2011: €2.27 billion). In Germany, the Vaillant Group’s largest market in terms of overall turnover, sales grew by around four per cent. Operating earnings amounted to €186 million. The result of operations before exceptional items was €225 million, corresponding to an increase of 10 per cent compared to the previous year (2011: €204 million). “While the heating technology market in Europe shrank, the Vaillant Group achieved continued growth in 2012 and has improved its strong market position,” noted Dr Carsten Voigtländer, Chief Executive Officer of the Vaillant Group, at the company’s annual press conference in Düsseldorf. “This once again proved that our international market presence with a diversified brand and product portfolio and a wide range of services create a decisive competitive advantage for us. We were able to offset falling regional demand by our own strength and by intensifying sales activities in our future markets.”

Growth in Europe and Asia

In Northern Europe, sales increased to €629 million (2011: €609 million). This growth can be attributed to positive development in the business with renewable energies and system components.

In Central Europe, total turnover amounted to €573 million (2011: €564 million). In the German market, condensing technology, combined heat and power stations, and system components developed positively. Sales improved even more markedly in the Austrian market, which saw growth of around nine per cent. In addition to condensing appliances, there was also greater demand for heat pumps from the Vaillant Group.

Despite an increase in sales of around two per cent in France, the company’s business in Southern Europe was strongly affected by the recession and financial crisis, particularly in Italy and Spain. Total sales amounted to €546 million (2011: €570 million).

The whole of the Eastern Europe region saw very positive development with sales rising by around seven per cent to €493 million (2011: €462 million). In Russia, the most important market in the region, and also in Ukraine, the Vaillant Group achieved double-digit growth. Conventional heating technologies continue to account for the majority of market demand in Eastern Europe.

In China, sales went up to €70 million, from €51 million in the same period in the previous year. This represents an increase of 37 per cent. The country again showed itself to be a stable driver of growth.

Efficient gas technologies and energy-efficient systems support growth

In 2012 the Vaillant Group reinforced its position as the world market leader in wall-hung heating appliances. The international launch of a new generation of condensing appliances under the premium Vaillant brand contributed to this. The product segment represents over 30 per cent of the company’s overall turnover, with more than 750,000 units sold each year. It is the Vaillant Group’s strongest area of business, both in terms of sales and of distributed units.

Growth was also generated by highly efficient combined heat and power stations. The Vaillant Group was among the first to establish a comprehensive product portfolio in this technology segment and benefitted in 2012, as in the previous year, from increased demand in Germany. Turnover grew by 25 per cent. Around 2,000 systems were sold in the market. By acquiring Hamburg-based manufacturer Cogenon at the beginning of May 2012, the Vaillant Group once again extended its product portfolio and now also offers an output class for large buildings and commercial applications.

The proportion of product sales attributable to technologies based on renewable energies was slightly below the previous year’s level at 7.9 per cent (2011: 8.5 per cent). However, the Vaillant Group was able to moderately increase its market share in the solar system and heat pump technology segments at the European level. Heat pumps in particular saw very positive growth in sales of around eight per cent.

Against a backdrop of falling demand for heating technology caused by unfavourable economic conditions in several major European markets, the service and spare parts business proved to be a stabilising factor and a driver of sustainable growth. Its share of overall sales increased to over 20 per cent. In order to achieve further gains in this field, the number of service companies was increased in 2012 and investments were made in the development of service activities.

Employee numbers remain constant

As at 31 December 2012, the Vaillant Group had 12,106 employees (2011: 12,166); the vast majority of personnel is based in Europe (9,575). The number of staff in Germany remained constant at 3,448. After Germany, the countries in which the Group has the largest number of employees are Turkey, France, Spain and Slovakia. The Vaillant Group’s product and technology development team, which has 680 members, is one of the largest in the industry.

About Vaillant

The Vaillant Group is an internationally active company based in Remscheid, Germany, which operates in the fields of heating, ventilation and air-conditioning technology. As one of the global market and technology leaders, the Vaillant Group develops and manufactures customised products, systems and services to provide a comfortable living environment. Its product portfolio ranges from efficient heating devices based on conventional energy sources to system solutions for using renewable energy. In the financial year 2020, the company, which has been family-owned since its foundation in 1874, generated sales of more than €2.7 billion with its workforce of about 15,000.