Financial
statements
and Board of
Directors’ report
Key figures
Board of Directors’ report
Financial statements 2021
Auditor’s report
87
88
102
166
87
Key figures
NET SALES BY
BUSINESS
AREA 2021
Industrial
Measurements
181.0 MEUR
Weather and
Environment
256.9 MEUR
59%
41%
NET SALES BY
BUSINESS
AREA 2021
Industrial
Measurements
181.0 MEUR
Weather and
Environment
256.9 MEUR
59%
41%
NET SALES BY
REGION
2021
Americas: North and South America
APAC: Asia Pacific
EMEA: Europe, Middle-East and Africa
34%
33%
33%
Americas
150 MEUR
APAC
145 MEUR
EMEA
143 MEUR
NET SALES BY
REGION
2021
Americas: North and South America
APAC: Asia Pacific
EMEA: Europe, Middle-East and Africa
34%
33%
33%
Americas
150 MEUR
APAC
145 MEUR
EMEA
143 MEUR
2017 2018
450
400
350
300
250
200
150
100
50
0
2019 2020 2021
NET SALES, MEUR
332.6
348.8
403.6
379.5
437.9
500
400
300
200
100
0
2017 2018 2019 2020 2021
ORDERS RECEIVED, MEUR
346.3
334.2
419.4
382.8
455.2
60
50
40
30
20
10
0
2017 2018 2019 2020 2021
OPERATING RESULT (EBIT), MEUR
40.9
38.9
41.1
44.8
50.1
160
140
120
100
80
60
40
20
0
2017 2018 2019 2020 2021
ORDER BOOK, MEUR
124.8
120.6
139.0
137.8
160.0
14
12
10
8
6
4
2
0
2017 2018 2019 2020 2021
RESEARCH & DEVELOPMENT COSTS
% OF NET SALES
11.9
13.0
13.1
14.0
12.6
2017 2018 2019 2020 2021
PERSONNEL AT YEAR-END
2,100
1,800
1,500
1,200
900
600
300
0
1,608
1,816
1,837
1,939*
1,979
*
Number of employees includes persons in
long-time absence as of January 1, 2021.
Comparison period 2020 has been adjusted
accordingly.
2017 2018
450
400
350
300
250
200
150
100
50
0
2019 2020 2021
NET SALES, MEUR
332.6
348.8
403.6
379.5
437.9
60
50
40
30
20
10
0
2017 2018 2019 2020 2021
OPERATING RESULT (EBIT), MEUR
40.9
38.9
41.1
44.8
50.1
Americas: North and South America
APAC: Asia Pacific
EMEA: Europe, Middle-East and Africa
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Key figures Board of Directors’ Report Financial statements 2021 Auditor’s report
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Board of Directors’ Report 2021
Key figures
Financial key figures
2021 2020 2019 2018 2017
Net sales, MEUR 437.9 379.5 403.6 348.8 332.6
Exports and international operations, % 98.0 97.0 98.0 98.0 97.0
Gross profit, % 55.2 56.1 54.8 53.1 52.3
Operating result, MEUR 50.1 44.8 41.1 38.9 40.9
% of net sales 11.5 11.8 10.2 11.1 12.3
Result before taxes, MEUR 48.3 41.3 40.2 37.5 38.1
% of net sales 11.0 10.9 10.0 10.8 11.5
Result for the financial year, MEUR 39.5 32.8 33.6 29.5 27.2
% of net sales 9.0 8.7 8.3 8.5 8.2
R&D expenditure, MEUR 55.3 53.2 52.8 45.4 39.6
% of net sales 12.6 14.0 13.1 13.0 11.9
Depreciation, amortization and impairment, MEUR 21.6 21.1 23.5 12.1 9.7
2021 2020 2019 2018 2017
Cash and cash equivalents, MEUR 77.9 45.4 56.4 72.7 91.3
Equity, MEUR 230.3 205.5 198.3 182.9 185.4
Statement of financial position total, MEUR 408.0 351.8 361.5 334.4 273.8
Return on equity, % 18.1 16.3 17.7 16.0 15.0
Solvency ratio, % 57. 2 59.0 55.7 55.6 68.9
Interest-bearing liabilities, MEUR 50.2 57.0 51.5 40.5 -
Gearing, % -12.0 5.7 -2.4 -17.6 -49.2
Capital expenditure, MEUR 19.2 31.0 26.8 14.5 8.5
% of net sales 4.4 8.2 6.6 4.2 2.5
Cash flow from operating activities, MEUR 80.0 41.0 40.8 48.3 49.2
Orders received, MEUR 455.2 382.8 419.4 334.2 346.3
Order book at the end of financial year, MEUR 160.0 137.8 139.0 120.6 124.8
Personnel expenses, MEUR 174.3 154.1 157.7 133.6 129.9
Average personnel 1,967 *1,929 1,829 1,678 1,592
Personnel at the end of financial year 1,979 *1,939 1,837 1,816 1,608
* Number of employees includes persons in long-time absence as of January 1, 2021. Comparison period 2020 has been adjusted accordingly.
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Key figures
Share key figures
2021 2020 2019 2018 2017
Earnings per share (EPS), EUR 1.08 0.91 0.94 0.82 0.76
Diluted earnings per share, EUR 1.07 0.91 0.93 0.81 0.75
Cash flow from operating activities
per share, EUR 2.21 1.14 1.14 1.35 1.38
Equity per share, EUR 6.36 5.70 5.52 5.11 5.20
Dividend per share, EUR *0.68 0.61 0.61 0.58 1.05
Dividend per earnings, % **62.9 66.9 65.2 70.7 138.2
Eective dividend yield, % **1.28 1.51 1.92 3.51 4.72
Price/earnings (P/E) 49.31 44.34 33.78 20.12 29.28
Series A share price development, EUR
highest price 55.80 42.50 32.80 23.90 24.45
lowest price 30.00 21.65 15.95 15.85 15.94
volume weighted average price 39.45 32.58 23.56 20.14 20.13
closing price 53.30 40.35 31.75 16.50 22.25
2021 2020 2019 2018 2017
Market capitalization at the end of
financial year***, MEUR 1,924.2 1 452.6 1 139.2 590.5 794.1
A shares traded
pieces 2,939,088 3,852,297 3,442,439 3,710,610 4,298,504
% of total series 9.9 13.0 11.6 12.5 14.5
Number of shares, pieces 36,436,728 36,436,728 36,436,728 36,436,728 36,436,728
A shares 29,705,636 29,705,636 29,685,330 29,658,066 29,658,066
K shares 6,731,092 6,731,092 6,751,398 6,778,662 6,778,662
Outstanding shares at the end of
financial year***, pieces 36,101,073 35 999 689 35 880 739 35 790 092 35 692 000
* Proposal by the Board of Directors
** Calculated according to the proposal by the Board of Directors
*** Including series A and K shares, excluding treasury shares. Series K shares are valued using the closing price for the series A share on the
last trading day of December.
The share issue without payment approved by Vaisala’s Annual General Meeting on April 10, 2018 doubled
the total number of series K and A shares. All share related figures in this Board of Directors’ Report have
been adjusted to reflect the increased number of shares.
Trading information is based on Nasdaq Helsinki Ltd. statistics.
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Calculation of key figures
Earnings/share, EUR = Result for the period +/- non-controlling interest
Average number of shares outstanding
Cash flow from business = Cash flow from business operations
operations/share, EUR Number of shares outstanding at the end of the period
Equity/share, EUR = Total equity attributable to owners of parent company
Number of shares outstanding at the end of the period
Dividend/share, EUR = Dividend
Number of shares outstanding at the end of the period
Dividend/earnings, % = Dividend
x 100
Result for the period +/- non-controlling interest
Eective dividend yield, % = Dividend / share
x 100
Closing price for the series A share at the end of the period
Price/earnings (P/E) = Closing price for the series A share at the end of the period
Earnings / share
Market capitalization, MEUR = Closing price for the series A share x
number of shares outstanding
Alternative performance measures
Vaisala presents in its financial reporting alternative performance measures, which describe businesses’
financial performance and its development as well as investments and return on equity. In addition
to accounting measures which are defined or specified in IFRS, alternative performance measures
complement and explain presented information. Vaisala presents in its financial reporting the following
alternative performance measures:
Net sales with comparable = Net sales converted to euros with exchange rates
exchange rates used during the comparison period
Gross margin, % = Net sales - Cost of sales
x 100
Net sales
Operating result = Result before income taxes, financial income and expenses,
and share of result in associated company as presented in
Consolidated Statement of Income. Operating result describes
profitability and development of business areas’ performance.
Result before taxes = Result before taxes as presented in Consolidated Statement of
Income.
Return on equity (ROE), % = Result for the period
x 100
Total equity (average)
Solvency ratio, % = Total equity
x 100
Statement of financial position total – advances received
Investmets = Gross investments in non-current intangible assets as well as
property, plant and equipment
Order book = Undelivered customer orders at the end of the period
Gearing, % = Interest-bearing liabilities – cash and cash equivalents
x 100
Total equity
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Orders received and order book
MEUR 2021 2020 Change FX*
Orders received 455.2 382.8 19% 20%
Order book, end of period 160.0 137.8 16%
* Change with comparable exchange rates
In 2021, orders received were strong with 19% increase compared to
previous year and totaled EUR 455.2 (382.8) million. Orders received
increased mostly in industrial instruments, life science, renewable
energy, and aviation market segments. Orders received increased
in both business areas. Second quarter orders received included
EUR13 million weather infrastructure project order with the National
Meteorology Agency in Ethiopia announced in October 2019.
At the end of December 2021, order book amounted to EUR 160.0
(137.8) million and increased by 16% compared to previous year. Order
book increased in both business areas. EUR 125.3 (100.1) million of the
order book is scheduled to be delivered in 2022.
Financial review 2021
Financial performance
MEUR 2021 2020 Change FX*
Net sales 437.9 379.5 15% 17%
Products 320.3 267.3 20%
Projects 63.6 59.3 7%
Services 51.8 52.9 -2%
Lease income 2.1 - -
Gross margin, % 55.2 56.1
Operating expenses 186.5 169.2 10%
R&D expenditure 55.3 53.2 4%
Amortization* 7.6 7.5
Operating result 50.1 44.8
% of net sales 11.5 11.8
* Amortization of intangible assets related to the acquired businesses
** Change with comparable exchange rates
In 2021, operating result increased from previous year to EUR 50.1
(44.8) million, 11.5 (11.8) % of net sales following growth in net sales.
Net sales increased by 15% compared to previous year and were
EUR 437.9 (379.5) million. In constant currencies, net sales increased
by 17%. Operations outside Finland accounted for 98 (97) % of
net sales. Net sales increased mostly in industrial instruments, life
science, renewable energy, and meteorology market segments. In
the comparison period, services net sales included discontinued
assessment services provided for renewable energy customers and
lease income.
Gross margin decreased compared to previous year and was 55.2
(56.1) %. Additional costs related to component spot purchases had a
one percentage point negative impact on gross margin.
Operating expenses increased to EUR 186.5 (169.2) million. The
increase was mainly due to higher incentive costs and headcount
increase during the year.
Operating result included expenses arising from valuation increase
of contingent considerations of acquired businesses based on
2021 financial results, as well as restructuring costs in Weather and
Environment business areas and a settlement payment to a business
partner, and related legal fees in the US. These expenses totaled EUR
6.9 million. Comparison period included EUR 1.8 million positive impact
of valuation of contingent considerations of acquired businesses.
In 2021, financial income and expenses were EUR -2.1 (-3.6) million.
This was mainly a result of valuation of USD denominated receivables
and interest expenses. Income taxes were EUR 8.9 (8.5) million and
eective tax rate 18.4 (20.6) %. Eective tax rate declined from previous
year as Vaisala expects to utilize tax losses carried forward from
acquired companies. Result before taxes was EUR 48.3 (41.3) million
and result for the period EUR 39.5 (32.8) million. Earnings per share was
EUR 1.08 (0.91).
Statement of financial position, cash flow and financing
Vaisala’s financial position remained strong in 2021. Cash and cash
equivalents increased to EUR 77.9 (45.4) million at the end of December
despite EUR 22 million dividend payment and EUR 5 million repayment
of revolving credit facility. At the end of December, statement of
financial position totaled EUR 408.0 (351.8) million.
In 2021, cash flow from operating activities increased to EUR 80.0
(41.0) million mainly as a result of increase in liabilities as well as
improved net result.
On December 31, 2021, Vaisala had interest-bearing borrowings
totaling EUR 50.2 (57.0) million. EUR 40.0 million of the interest-bearing
borrowings related to a term loan, which has a financial covenant
(gearing) tested semi-annually. On December 31, 2021, Vaisala was in
compliance with the covenant. For short term liquidity purposes, Vaisala
has a domestic commercial paper program and a committed revolving
credit facility, which were both unutilized on December 31, 2021 (EUR0
OUR BUSINESS SUSTAINABLE BUSINESS PRACTICESCREATING VALUE GOVERNANCE FINANCIALS
Key figures Board of Directors’ Report Financial statements 2021 Auditor’s report
92
million and EUR 5 million respectively). In addition, interest-bearing
lease liabilities totaled EUR 10.1 (11.9) million.
Capital expenditure
In 2021, capital expenditure in intangible assets and property, plant
and equipment totaled EUR 19.2 (31.0) million. Capital expenditure was
mainly related to investments in machinery and equipment to develop
and maintain Vaisala’s production and service operations as well as
equipment for the R&D laboratories.
Depreciation, amortization, and impairment were EUR 21.6 (21.1)
million. This included EUR 7.6 (7.5) million of amortization of identified
intangible assets related to the acquired businesses.
Personnel
The average number of personnel employed in 2021 was 1,967 (1,929*).
At the end of 2021, the number of employees was 1,979 (1,939*). 77
(77) % of employees were located in EMEA, 15 (14) % in Americas and 8
(9) % in APAC. 66 (65) % of employees were based in Finland.
Number of employees by region
Dec 31, 2021 Dec 31, 2020 Change
Americas 292 281 11
APAC 156 166 -10
EMEA (excluding Finland) 228 230 -2
Finland 1,303 1,262 41
Total 1,979 *1,939 40
Number of employees by function
Dec 31, 2021 Dec 31, 2020 Change
Sales and marketing 368 373 -5
R&D 573 547 26
Operations 491 478 13
Services 331 337 -6
Administration 216 204 12
Total 1,979 *1,939 40
* Number of employees includes persons in long-time absence as of January 1, 2021. Compari-
son period 2020 has been adjusted accordingly.
Number of employees increased in R&D as Vaisala continued
in-sourcing of software development and strengthen resourcing and
competences in order to secure future investments. Resource increase
in operations followed increased production volumes. Administration
prepared for ERP renewal project by increasing personnel.
In May 2021, Vaisala started co-operation negotiations in Finland
in its Project and Customer Services unit within Weather and
Environment business area following decrease in project orders. These
negotiations covered 57 employees. As a result of the negotiations,
nine positions were terminated. Redundancies were avoided as
impacted employees were employed in open positions within the
company.
In 2021, personnel expenses totaled EUR 174.3 (154.1) million.
Share-based incentive plans
The share issue without payment approved by Vaisala’s Annual General
Meeting on April 10, 2018, doubled the total number of series K and
A shares. All share related figures have been adjusted to reflect the
increased number of shares.
Share-based incentive plans are targeted to the Group key
employees. The performance criterion for 2017 and 2018 plans was
based on the group’s profitability in respective calendar year. From
2019 onwards the performance criteria of the plans are based on the
development of the total shareholder return (TSR) and the group’s
profitability during the three-year plan period. The rewards are paid
partly in Vaisala’s series A shares and partly in cash. The cash portion
covers taxes and tax-related costs arising from the reward to a key
employee. No reward is paid if a key employee’s employment or service
ends before the reward payment date. From the plan 2019–2021
onwards, Vaisala’s Board of Directors requires that the President and
CEO and each member of the Management Group retains his/her
ownership of shares received under this plan until the value of his/her
ownership in Vaisala corresponds to at least his/her annual gross base
salary.
On December 15, 2016, the Board of Directors resolved a share-
based incentive plan 2017. On March 3, 2020, the reward corresponding
to 237,900 series A shares, 65% of the maximum, was paid to 33 key
employees. On June 28, 2019, the reward corresponding to 3,467 series
A shares was paid to a key employee. Closing price of Vaisala’s series
A share was EUR 17.90 on the grant date of the incentive plan. A total
expense of this plan of EUR 4.2 million was recorded for 2017–2020.
On February 7, 2018, the Board of Directors resolved a share-based
incentive plan 2018. On March 10, 2021, the reward corresponding to
166,200 series A shares, 55% of the maximum, was paid to 27 key
employees. On June 28, 2019, the reward corresponding to 923 series
A shares was paid to a key employee. On March 10, 2021, the reward
corresponding to 8,000 series A shares was paid to Kai Öistämö,
President and CEO. Closing price of Vaisala’s series A share was
EUR22.10 on the grant date of the incentive plan. A total expense of
this plan of EUR 3.8 million was recorded for 2018–2021.
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93
On February 12, 2019, the Board of Directors resolved a share-based
incentive plan 2019-2021 for approximately 45 key employees. The
reward will be paid in spring 2022. The maximum amount of this plan
originally corresponded to 330,000 series A shares. The expenses of
this plan are accrued from April 2019 to March 2022. Closing price
of Vaisala’s series A share was EUR 19.06 on the grant date of the
incentive plan. On March 10, 2021, the reward corresponding to 23,040
series A shares was paid to former President and CEO, Kjell Forsén.
On February 12, 2020, the Board of Directors resolved for a share-
based incentive plan 2020–2022 for approximately 45 key employees.
The reward will be paid in spring 2023. The maximum amount of this
plan originally corresponded to 240,000 series A shares. The expenses
of this plan are accrued from May 2020 to March 2023. Closing price
of Vaisala’s series A share was EUR 28.65 on the grant date of the
incentive plan. On March 10, 2021, the reward corresponding to 5,529
series A shares was paid to former President and CEO, Kjell Forsén.
On December 17, 2020, the Board of Directors resolved for a share-
based incentive plan 2021-2023 for approximately 40 key employees.
The reward will be paid in spring 2024. The maximum amount of this
plan originally corresponded to 180,000 series A shares. The expenses
of this plan are accrued from April 2021 to March 2024. Closing price
of Vaisala’s series A share was EUR 32.10 on the grant date of the
incentive plan.
Expenses for share-based incentive plans
EUR million 2017 2018 2019 2020 2021
Share-based incentive plan 2017 1.1 1.3 1.5 0.3
Share-based incentive plan 2018 0.6 1.2 1.5 0.5
Share-based incentive plan 2019 0.6 1.6 1.8
Share-based incentive plan 2020 0.6 1.8
Share-based incentive plan 2021
1.0
2021 review by business area
Industrial Measurements business area
MEUR 2021 2020 Change FX**
Orders received 194.4 146.0 33% 35%
Order book, end of period 32.9 18.0 83%
Net sales 181.0 143.9 26% 27%
Products 165.9 129.9 28%
Services 15.1 14.1 7%
Gross margin, % 62.8 64.4
Operating expenses 69.8 61.5 14%
R&D expenditure 21.1 19.2 10%
Amortization* 1.7 1.7
Operating result 43.9 31.6
of net sales, % 24.3 21.9
* Amortization of intangible assets related to the acquired businesses
** Change with comparable exchange rates
Industrial Measurements business area’s 2021 orders received increased
strong 33% compared to previous year totaling to EUR 194.4 (146.0)
million. Increase in orders received was strong in industrial instruments,
life science, power industry, and liquid measurements market
segments.
At the end of December 2021, Industrial Measurements business
area’s order book amounted to EUR 32.9 (18.0) million and increased
by 83% compared to previous year. EUR 30.7 (16.6) million of the order
book is scheduled to be delivered in 2022. Order book increased in all
market segments.
Industrial Measurements business area’s 2021 operating result
increased compared to previous year and totaled EUR 43.9 (31.6)
million, 24.3 (21.9) % of net sales.
In 2021, net sales were EUR 181.0 (143.9) million and increased
by 26% compared to previous year. In constant currencies, net
sales increased by 27%. Net sales growth was strong in industrial
instruments, life science, and power industry market segments. Net
sales for liquid measurements market grew slightly from previous year.
Gross margin decreased to 62.8 (64.4) %. Additional costs related
to component spot purchases had a two percentage point negative
impact on gross margin.
Operating expenses increased to EUR 69.8 (61.5) million. The
increase was mainly due to higher incentive costs, continued
investments in R&D and headcount increase.
Weather and Environment business area
MEUR 2021 2020 Change FX**
Orders received 260.8 236.9 10% 11%
Order book, end of period 127.1 119.8 6%
Net sales 256.9 235.5 9% 10%
Products 154.4 137.4 12%
Projects 63.6 59.3 7%
Services 36.7 38.8 -5%
Lease income 2.1 - -
Gross margin, % 49.9 51.0
Operating expenses 115.2 106.3 8%
R&D expenditure 34.2 34.1 0%
Amortization* 5.9 5.8
Operating result 7.6 14.6
of net sales, % 3.0 6.2
* Amortization of intangible assets related to the acquired businesses
** Change with comparable exchange rates
Weather and Environment business area’s 2021 orders received
increased by 10% compared to previous year and totaled EUR 260.8
(236.9) million. Increase in orders received was strong in renewable
energy market segment and good in aviation market segment. Orders
OUR BUSINESS SUSTAINABLE BUSINESS PRACTICESCREATING VALUE GOVERNANCE FINANCIALS
Key figures Board of Directors’ Report Financial statements 2021 Auditor’s report
94
received in meteorology market segment were at previous year’s level
and decreased in ground transportation market segment. Second
quarter orders received included EUR 13 million weather infrastructure
project order with the National Meteorology Agency in Ethiopia
announced in October 2019.
At the end of December 2021, Weather and Environment business
area’s order book amounted to EUR 127.1 (119.8) million and increased
by 6% compared to previous year. EUR 94.6 (83.6) million of the order
book is scheduled to be delivered in 2022. Order book grew in ground
transportation and meteorology market segments, whereas order book
in aviation and renewable energy market segments decreased.
Weather and Environment business area’s 2021 operating result
decreased compared to previous year and totaled EUR 7.6 (14.6)
million, 3.0 (6.2) % of net sales.
In 2021, net sales were EUR 256.9 (235.5) million and increased
by 9% compared to previous year. In constant currencies, net sales
increased by 10%. Net sales growth was strong in renewable energy
and meteorology market segments, were at previous year’s level in
aviation market segment, and decreased in ground transportation.
In the comparison period, services net sales included discontinued
assessment services provided for renewable energy customers and
lease income.
Gross margin was decreased to 49.9 (51.0) %. Additional costs
related to component spot purchases had a one percentage point
negative impact on gross margin.
Operating expenses increased to EUR 115.2 (106.3) million. The
increase was mainly due to higher incentive costs and investments in
ITsystem renewal.
Operating result included expenses arising from valuation increase
of contingent considerations of acquired businesses based on 2021
financial results, as well as restructuring costs and a settlement
payment to a business partner in the US. These expenses totaled
EUR5.5 million. Comparison period included EUR 1.8 million positive
impact of valuation of contingent considerations of acquired
businesses.
Impact of the COVID-19 pandemic
The COVID-19 pandemic continued to impact operation through-
out the company during the whole year. However, global economy
recovered during the year, and in some market segments, the recovery
was stronger and faster than anticipated in the beginning of the year.
Picked up demand was reflected in increased demand especially in
Industrial Measurements business area. However, it is not possible to
quantify the impact of the pandemic on financial results.
Following decrease in project orders, Vaisala’s co-operation
negotiations in Finland in its Project and Customer Services unit within
Weather and Environment business area resulted to termination of nine
positions. Redundancies were avoided as other positions were found
within the company.
Shortage of components did not aect Vaisala’s delivery capability
in 2021. However, shortage of components generated additional
material costs and had a one percentage point negative impact on
Vaisala’s gross margin in 2021. Visibility to component availability
remains weak and component supply constraints are expected to
continue throughout 2022. Additional material costs related to spot
purchases are expected to remain at high level during 2022.
Vaisala’s financial position and cash flow remained strong. Gearing
was -12.0% at the end of December 2021. No material changes were
identified in customers’ payment behavior and credit loss allowance
did not materially change during 2021.
Strategy implementation in 2021
In 2021, Vaisala had strong momentum in its strategy execution and
delivered on the strategic promise for profitable growth. Vaisala
continued to build technology leadership and renew oering even
though the company had to refocus part of its R&D resources
to mitigate component shortages. Vaisala progressed in further
developing its scalability in high mix low volume operations.
Industrial Measurements business area drives profitable growth
through product leadership strategy. Goal is to exceed Vaisala’s
average growth target. In 2021, Industrial Measurements business area
succeeded in all market segments, exceeding expectations in high-end
humidity and high-end carbon dioxide, continuous monitoring systems
and power industry applications, and winning market share with
reliable delivery performance. Industrial Measurements business area
made good progress on channel management development and the
regional expansion continued well in focus areas.
Industrial Measurement business area’s product leadership strategy
is based on continuously creating new products. In 2021, business area
introduced a new instrument for o-gas methane and carbon dioxide
measurements in the biomethane production process. This robust,
reliable, and compact multigas instrument provides continuous and
accurate measurement data to help optimize and control the biogas
upgrading process for greater biomethane yield, process eciency,
and environmental benefits.
In addition, Industrial Measurements business area launched a new
next-generation humidity and temperature transmitter series to take
advantage of advancements in technology and to meet and exceed
current hazardous area regulations. The new transmitter series oers
improved user experience, better corrosion resistance, and the latest
Vaisala humidity measurement performance. Typical applications
for these transmitters include paint booths in automotive industry,
hydrogen cooled generators in electricity generation, chemical plants
and processes, baking industry, pharmaceuticals manufacturing, oil and
gas drilling platforms, and fuel storage tanks.
Industrial Measurements business area also launched an easy-
to-install wireless carbon dioxide measurement solution to simplify
incubator monitoring and enable cost savings for customers. This new
life science environmental measurement solution combines Vaisala’s
carbon dioxide probe GMP251 with Vaisala wireless RFL100 data
logger. The new configuration leverages the superior measurement
stability and accuracy and provides reliable carbon dioxide percentage
measurements for incubators used for example in cell culturing, gene
therapy, and vaccine research.
Moreover, Industrial Measurements business area expanded
its modular Indigo-family by introducing streamlined Indigo510
Transmitter. This new transmitter is compatible with all Indigo
measurement probes and its features include modular support for
one probe at a time, and a large touchscreen display for local data
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visualization. The Vaisala Indigo510 Transmitter is an ideal choice
for demanding industrial applications where precise and accurate
measurements are needed for a single parameter at a time. With
Indigo510 transmitter, customers benefit from regular platform and
software updates.
Weather and Environment business area’s strategy strives to oer
industry-leading products for weather observations, to excel in large
project deliveries, to grow in renewable energy market, to develop
digital solutions for selected weather critical operations, and to expand
into environmental measurements. In 2021, Weather and Environment
business area’s success in renewable energy market segment was
excellent and expansion to new market segments progressed well in
maritime, automotive, and urban weather segments. Large weather
infrastructure opportunities continued to suer from the exceptional
market situation. Digital services’ gross margin improved, although
net sales remained at previous year’s level. In January 2022, Vaisala
acquired US-based software company AerisWeather, to accelerate
growth of weather and environmental data business. AerisWeather
enables Vaisala to expand its oering and opens access for Vaisala’s
leading data oering to several new customer segments.
Weather and Environment business area’s strategic objective is to
build technology leadership and renew its product and service oering.
In 2021, business area launched an unprecedented lidar ceilometer that
improves standard ceilometer reporting by leveraging depolarization
technology, providing more refined and accurate data for greater
situational awareness. The depolarization measurement capabilities
enable accurate liquid/frozen dierentiation, detection of dust, sand,
and volcanic ash layers. This will enable nowcasting for safer air travel
and operations, improved air quality modelling, and the ability to make
short-term forecasts of precipitation.
Weather and Environment business area also launched world-class
air quality sensor to enhance quality of life, safety, eciency, and sus-
tainability in communities. By identifying pollutant gases and particles
in real time, the new sensor advances Vaisala’s oering to improve
decision-making and empower stakeholders in urban communities
around the world. This new sensor can be connected to customer’s
own system or to Vaisala’s innovative weather and environmental
intelligence platform. When paired with Vaisala Beacon Weather
Station and Wx Beacon UI for measurement data, stakeholders also
gain access to additional key weather parameters, plus connectivity to
transfer, manage, and visualize all of the data.
In addition, Weather and Environment business area launched
industry leading automatic weather station to empower communities
across the world to keep citizens safe and secure. This automatic
weather station is a comprehensive measurement, communication, and
data monitoring solution that makes modern observation networks
easy to create, manage, and maintain over a long lifespan.
Moreover, Weather and Environment business area introduced
a state-of-the-art sounding system that delivers industry-first
capabilities, including readiness to conduct simultaneous upper air
observations, to provide unprecedented visibility into rapidly changing
weather conditions and enhance forecasting accuracy. It enables
superior operational performance and dependability over a long life
cycle and its compact design is purpose built for operating in versatile
environments. The system is intuitive and easy to use with access to
real-time sounding status information and comprehensive diagnostics,
and its data security provides protection against data threats and
unauthorized access.
Weather and Environment business area also launched a new Strike
Damage Potential solution that quickly identifies and locates lightning
strikes with greater potential to cause damage or start a fire, allowing
preventative action to stop escalation of a problem. The user interface,
Lightning Exporter, was updated to make the information easy to
access and to be clearly presented on the map display. Customers
can incorporate the information in their own applications using the
Lightning Integrator API.
In addition, Weather and Environment business area upgraded its
solution for road asset management. This version provides better user
experience through new segment-based data model, whole network
wide map layer, and improved performance. Also trac sign classifica-
tion models for Australia and United States were added enabling trac
sign mapping in these countries. RoadAI API was updated allowing
more functionalities to be done over the interface including modifying
and deleting annotations and using dierent coordinate systems.
Vaisala Operations manufactures products for both business areas
and develops operational excellence in high mix low volume supply
chain through Vaisala Production System. Strategic programs are
productivity improvement, early involvement to product creation, as
well as scouting and deploying latest smart factory technologies.
In 2021, operations expanded its production space as well as
warehouse capacity through automation in order to respond to
strong increase in demand. Despite shortage of components and
capacity increases, delivery capability was solid through-out the year.
Operations also introduced several new measures and practices to
improve product quality. Operations participated in multiple product
development projects together with business areas in order to ensure
good producibility and timely production ramp-up.
Vaisala’s process development focused on customer facing proces-
ses. Implementation of CPQ (Configure Price and Quote) progressed
well in both business areas. Development project of new ERP
(Enterprise Resource Planning) solution was kicked-o, and project for
developing data and analytics solution was initiated.
Strategy update and long-term financial targets
In September, Vaisala's Board of Directors approved the company’s
strategy and updated long-term financial targets for the next three
years.
Vaisala’s strategy focuses on driving sustainable growth and global
leadership in weather, environmental, and industrial measurements.
Through its products and technologies, Vaisala enables business-criti-
cal decisions and operations for its customers. Thereby, the company
strongly contributes to solving global challenges related to climate
change, resource eciency, and well-being and health.
Vaisala aims to be market leader in the markets where it operates.
The company has identified four drivers for successful strategy
implementation:
• Product and technology leadership from sensors to digital
solutions
• Deep customer understanding and application knowhow
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• Scalability in high-mix, low-volume business
• Engaged and talented people
Following updated strategy and increased focus in sustainability, the
Board of Directors decided to revise the scope of the Remuneration
and HR Committee and consequently, the name was changed to
People and Sustainability Committee from the beginning of 2022.
This highlights importance of sustainability issues in Vaisala’s strategy
execution.
Long-term financial targets
Based on the revised strategic objectives with raised growth ambition
and focus on operational excellence, Vaisala updated its long-term
financial targets. Vaisala's long-term target is to achieve an average
annual net sales growth of 7% and an operating result margin (EBIT) of
15% during the strategy period.
Earlier Vaisala’s objective was profitable growth with an average
annual growth exceeding 5% and operating result margin (EBIT)
exceeding 12%.
Vaisala does not consider the long-term financial targets as market
guidance for any given year.
Group structure
Vaisala’s headquarters are located in Vantaa, Finland. On December
31, 2021, Vaisala had subsidiaries in Australia, Brazil, Canada, China,
Finland, France, Germany, India, Japan, Kenya, Malaysia, Mexico, United
Kingdom and United States. The parent company has branches in
Argentina and Colombia. Vaisala SAS was merged into Leosphere SAS
on July 30, 2021. The name of Leosphere SAS was changed to Vaisala
France SAS on October 1, 2021.
Board of Directors
The Annual General Meeting held on March 30, 2021, confirmed that
the number of the Board members is eight.
Members of the Board of Directors on December 31, 2021
• Ville Voipio, Chair
• Raimo Voipio, Vice Chair
• Petri Castrén
• Antti Jääskeläinen
• Petra Lundström
• Jukka Rinnevaara
• Kaarina Ståhlberg
• Tuomas Syrjänen
Management Group
In January, Olli Nastamo was appointed Executive Vice President,
Operational Excellence. He started in his position on March 1, 2021. In
July, Timo Leskinen was appointed as Executive Vice President, Human
Resources. He started in this position on October 1, 2021. Nastamo and
Leskinen are members of the Vaisala Management Group and report to
President and CEO Kai Öistämö.
On December 31, 2021, Vaisala’s Management Group members were
• Kai Öistämö, President and CEO, Chairman of the Management
Group
• Sampsa Lahtinen, EVP, Industrial Measurements Business Area
• Timo Leskinen, EVP, Human Resources
• Kaarina Muurinen, CFO
• Olli Nastamo, EVP, Operational Excellence
• Vesa Pylvänäinen, EVP, Operations
• Jarkko Sairanen, EVP, Weather and Environment Business Area
• Katriina Vainio, EVP, Group General Counsel
Risk management
The objective of Vaisala’s risk management is to identify and manage
material risks related to strategy implementation and business
operations. Vaisala’s Risk Management Policy, approved by the Board
of Directors, covers the company’s strategic, operational, hazard, and
financial risks. The policy aims to ensure the safety of the company’s
personnel, operations, and products as well as the continuity and
compliance of business operations.
The Board of Directors defines and approves risk management
principles and assesses the eectiveness of risk management.
The Audit Committee reviews compliance with Risk Management
Policy and processes. Vaisala’s Risk Management Steering Group is
responsible for the operational oversight of risk management and
assures that all significant risks are identified and reported and that
risks are acted upon in the appropriate manner.
Risk management is integrated into key business processes
and operations by incorporating risk identification, assessment,
management, and risk reporting actions into the core processes. The
most significant risks are reported to the Vaisala Management Group
quarterly and to the Audit Committee annually.
Financial risk management
Vaisala is exposed to a number of financial risks in its operations
of which key ones are currency risk, interest rate risk, refinancing
and liquidity risks as well as financial counterparty risk and trade
receivables credit risks. Vaisala’s objective is to limit the impact of
these risks on statement of income, statement of financial position and
cash flow statement. The management of financial risks is based on the
treasury and credit policies approved by the Board of Directors.
Currency risk
Currency risk refers to the uncertainty in statement of income,
statement of financial position and cash flow statement arising
from exchange rate fluctuations. Vaisala’s business is global and is
exposed to transaction and translation risks in multiple currencies. The
transaction risk is related to the currency flows of sales and expenses.
The translation risk arises from net investments in entities outside the
euro area.
Vaisala’s sales are denominated in various currencies. In 2021, 46%
of the group’s sales was in EUR, 31% in USD, 9% in CNY, 5% in JPY and
4% in GBP. Expenses and purchases occur mostly in EUR and USD. The
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group’s policy is to hedge foreign currency positions which consists
of the order book, purchase commitments, net receivables, cash and
cash equivalents and intercompany loans. Vaisala does not hedge
forecasted cash flows that are not in the order book. Vaisala does not
apply hedge accounting in accordance with IFRS and changes in fair
value are recognized in the statement of income.
Intercompany loans and deposits are mainly initiated in subsidiaries’
local currencies. Vaisala does not hedge equities of subsidiaries.
Translation of subsidiaries’ equities into euros caused translation
dierence of EUR 4.5 (-4.0) million. The most significant translation
risk exposures are in USD.
The IFRS 7 currency risk sensitivity analysis is based on the group
companies’ foreign currency receivables, cash and cash equivalents
and liabilities. The calculation does not include internal loans, order
book or forecasted cash flows, but includes foreign exchange forwards
in their nominal value. The eect of a 10% appreciation in all open net
currency positions on Vaisala’s result after taxes and equity would
have been EUR -0.4 (-0.1) million. Three largest foreign exchange net
exposures in euro and their sensitivity analysis based on a 10% change
(before taxes) are presented in the following table:
Foreign exchange net exposures against EUR
2021 2020
USD -8.3 HRK -3.0
PLN -3.1 USD -2.7
HRK -3.0 SEK -2.3
Interest rate risk
Interest rate risk refers to the uncertainty in statement of income,
statement of financial position and cash flow statement arising from
interest rate changes. The group is exposed to cash flow interest rate
risk, if it has floating rate liabilities. At the end of the financial year 2021
Vaisala’s interest-bearing liabilities and loans were at floating rates and
totaled to EUR 50.2 (57.0) million. EUR 10.1 (11.9) million of interest-
bearing liabilities and loans related to lease liabilities.
Refinancing and liquidity risks
Refinancing and liquidity risk refers to the uncertainty in the ability to
maintain liquidity. In order to ensure liquidity, cash and cash equivalents
and availability of credit facilities are maintained at a sucient level.
On December 31, 2021, Vaisala’s cash and cash equivalents
amounted to EUR 77.9 (45.4) million. Vaisala has a EUR 40.0 million
unsecured term loan which was signed on May 25, 2020. The loan
matures in three years from the signing date and has a financial
covenant (gearing), which is tested semi-annually. On December 31,
2021, Vaisala was in compliance with the covenant. This facility is used
for refinancing of existing indebtedness as well as for general corporate
and working capital purposes.
In addition, Vaisala has a EUR 50 million unsecured revolving credit
facility which was signed on October 5, 2018. The committed credit
facility agreement matures in 5 years from the signing, and it has
no financial covenants. On December 31, 2021, Vaisala had interest
bearing liabilities totaling EUR 50.2 (57.0) million. Group has no loans
that would mature after five years or more. In addition, Vaisala has a
domestic commercial paper program amounting to EUR 150 million
that was not utilized as of December 31, 2021.
Financial counterparty risk
Financial counterparty risk refers to the uncertainty about the
counterparty’s ability to assume the obligations related to the
financing. Vaisala is exposed to financial counterparty risk in respect
of cash and cash equivalents and derivative financial instruments.
Vaisala’s cash and cash equivalents amounted to EUR 77.9 (45.4)
million and the nominal value of derivative financial instruments to EUR
35.2 (31.4) million. Vaisala deposits its assets and concludes derivative
financial contracts with counterparties with good creditworthiness and
approved according to Vaisala’s treasury policy. The creditworthiness
of banks is constantly assessed.
Trade receivables credit risk
Trade receivables credit risk means the customer-related uncertainty
about the collectability of receivables. These trade receivables credit
risks are managed by using letter of credit, advance payments and
bank guarantees as payment terms. Additionally, trade receivables
credit risk is managed by utilizing credit risk insurance and by
monitoring customer liquidity. Management estimates that the group
does not have significant credit risk concentrations. No single customer
or a group of customers constitutes a significant risk due to globally
distributed customer base. During the financial year, credit losses and
related reversals for trade receivables recognized in the statement of
income amounted to EUR -0.1 (-0.3) million. Credit loss is recognized
once it has been ocially declared that the receivable will not be paid
as a result of liquidation or bankruptcy.
Further information about risk management and risks is available in the
Annual Report’s sections Governance/Risk Management and on the
company’s website at vaisala.com.
Annual General Meeting 2021
Vaisala Corporation’s Annual General Meeting was held on March 30,
2021. The meeting approved the financial statements and discharged
the members of the Board of Directors and the President and CEO
from liability for the financial period January 1–December 31, 2020.
Dividend
The Annual General Meeting decided a dividend of EUR 0.61 per share.
The record date for the dividend payment was April 1, 2021, and the
payment date was April 12, 2021.
Board of Directors
The Annual General Meeting confirmed that the number of Board
members is eight. Petri Castrén, Antti Jääskeläinen, Petra Lundström,
Jukka Rinnevaara, Kaarina Ståhlberg, Tuomas Syrjänen, Raimo Voipio
and Ville Voipio will continue as members of the Board of Directors.
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The Annual General Meeting confirmed that that the annual
remuneration payable to the Chair of the Board of Directors is
EUR55,000 and each Board member EUR 40,000 per year.
Approximately 40% of the annual remuneration will be paid in Vaisala
Corporation’s series A shares acquired from the market and the rest
in cash. In addition, the Annual General Meeting confirmed that the
meeting fee for the Chair of the Audit Committee will be EUR 1,500
per attended meeting and EUR 1,000 for each member of the Audit
Committee and Chair and each member of the Remuneration and
HR Committee and any other committee established by the Board of
Directors for a term until the close of the Annual General Meeting in
2022. The meeting fees are paid in cash. Possible travel expenses will
be reimbursed according to the travel policy of the company.
Auditor
The Annual General Meeting re-elected Deloitte Oy as the auditor of
the company and APA Reeta Virolainen will act as the auditor with
the principal responsibility. The Auditors are reimbursed according to
invoice presented to the company.
Authorization for the directed repurchase of own series A shares
The Annual General Meeting authorized the Board of Directors to
resolve on the directed repurchase of a maximum of 500,000 of the
company's own series A shares in one or more instalments by using
company's unrestricted equity. The authorization is valid until the
closing of the next Annual General Meeting, however, no longer than
September 30, 2022.
Authorization on the issuance of the company's own series A shares
The Annual General Meeting authorized the Board of Directors to
resolve on the issuance of a maximum of 835,794 company's own
series A shares. The issuance of own shares may be carried out in
deviation from the shareholders' pre-emptive rights (directed issue).
The authorization entitles the issuance of treasury series A shares as a
directed issue without payment as part of the company's share based
incentive plan. The subscription price of the shares can instead of cash
also be paid in full or in part as contribution in kind. The authorization
is valid until September 30, 2022. The authorization for the company's
incentive program shall however be valid until March 30, 2025.
The organizing meeting of the Board of Directors
At its organizing meeting held after the Annual General Meeting, the
Board elected Ville Voipio as the Chair of the Board of Directors and
Raimo Voipio as the Vice Chair.
Kaarina Ståhlberg was elected as the Chair and Petri Castrén, Antti
Jääskeläinen and Raimo Voipio as members of the Audit Committee.
Ville Voipio was elected as the Chair and Petra Lundström, Jukka
Rinnevaara and Tuomas Syrjänen as members of the Remuneration and
HR Committee. The Chair and all members of the Audit Committee as
well as the Remuneration and HR Committee are independent both of
the company and of significant shareholders.
Shares and shareholders
Share capital and shares
Vaisala’s share capital totaled EUR 7,660,808 on December 31, 2021.
Vaisala has 36,436,728 shares, of which 6,731,092 are series K shares
and 29,705,636 series A shares. The series K shares and series A shares
are dierentiated by the fact that each series K share entitles its owner
to 20 votes at a General Meeting of Shareholders while each series
Ashare entitles its owner to 1 vote. The series A shares represented
81.5% of the total number of shares and 18.1% of the total votes. The
series K shares represented 18.5% of the total number of shares and
81.9% of the total votes.
Trading and share price development
In 2021, a total of 2,939,088 series A shares with a value totaling
EUR115.8 million were traded on the Nasdaq Helsinki Ltd. During
the year, the share price increased by 32% while OMXHCAPPI index
increased by 21%. The closing price of the series A share on the Nasdaq
Helsinki stock exchange was EUR 53.30. Shares registered a high of
EUR 55.80 and a low of EUR 30.00. Volume-weighted average share
price was EUR 39.45.
The market value of series A shares on December 31, 2021 was
EUR1,565.4 million, excluding company’s treasury shares. Valuing the
series K shares – which are not traded on the stock market – at the
rate of the series A share’s closing price on the last trading day of
December, the total market value of all the series A and series K shares
together was EUR 1,924.2 million, excluding company’s treasury shares.
Treasury shares
In March 2021, a total of 87,100 of treasury shares were conveyed
without consideration to the 28 key employees who participated in
the Share-based incentive plan 2018 under the terms and conditions
of the plan. Of these shares, 4,000 were conveyed to the President
and CEO Kai Öistämö and 13,850 to the previous President and CEO
Kjell Forsén. In addition, 11,520 shares were conveyed to Kjell Forsén
related to the Share-based incentive plan 2019–2021 and 2,764 shares
related to the Share-based incentive plan 2020–2022 under the terms
and conditions of the plans. This directed share issue was based on
an authorization given by the Annual General Meeting held on June 3,
2020.
Following this directed share issue, the number of series A treasury
shares on December 31, 2021, was 335,655, which represents 1.1% of
series A shares and 0.9% of total shares.
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Major shareholders December 31, 2021
A shares K shares Total % of shares % of votes
Novametor Oy 2,778,000 998,358 3,776,358 10.36 13.84
Finnish Academy of Science and Letters 272,900 1,757,760 2,030,660 5.57 21.56
Nordea Nordic Small Cap Fund 1,750,710 0 1,750,710 4.80 1.07
Mandatum Life Insurance Company Ltd. 1,196,200 274,800 1,471,000 4.04 4.07
Weisell-säätiö 1,440,000 0 1,440,000 3.95 0.88
Voipio Mikko 666,000 602,312 1,268,312 3.48 7.74
Caspers Anja 406,560 562,936 969,496 2.66 7.10
Voipio Raimo* 514,992 454,296 969,288 2.66 5.84
Voipio Tauno 591,520 315,304 906,824 2.49 4.20
Ilmarinen Mutual Pension Insurance Company 903,275 0 903,275 2.48 0.55
Voipio Lauri 561,692 83,376 645,068 1.77 1.36
Voipio Riitta 561,692 83,376 645,068 1.77 1.36
Voipio Ville 397,136 96,712 493,848 1.36 1.42
Voipio Mari 391,486 96,712 488,198 1.34 1.42
Voipio Timo 391,484 96,712 488,196 1.34 1.42
Total 12,823,647 5,422,654 18,246,301 50.08 73.80
Nominee registered shares** 7,296,736 0 7,296,736 20.03 4.44
* In addition to direct share ownership, Raimo Voipio’s controlled organization Imar Oy owned 56,000 series A shares.
** Includes 1,063,260 series A shares owned by Lannebo Fonder, which represented 2.92% of all shares and 0.65% of all votes (according to Lannebo’s notification).
Ownership structure (series A and K shares)
December 31, 2021
Shares % of shares
Households 14,608,158 40.09
Nominee registered and outside
Finland 7,344,011 20.16
Private companies 4,819,887 13.23
Financial and insurance institutions 4,592,461 12.60
Non-profit organizations 3,845,273 10.55
Public sector organizations 1,226,938 3.37
Total 36,436,728 100.00
Ownership distribution (series A and K shares)
December 31, 2021
Share-
holders
% of share-
holders Shares
% of
shares
1–100 7,102 56.11 268,856 0.74
101–500 3,595 28.40 963,409 2.64
501–1,000 976 7.7 1 736,205 2.02
1,001–5,000 757 5.98 1,617,156 4.44
5,001–10,000 94 0.74 645,125 1.77
10,001–50,000 82 0.65 1,667,690 4.58
50,001–100,000 18 0.14 1,226,555 3.37
100,001–500,000 20 0.16 5,272,978 14.47
500,001– 14 0.11 24,038,754 65.97
Total 12,658 100.00 36,436,728 100.00
Nominee registered 9
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Shareholders’ agreements
The Board of Directors is not aware of any agreements concerning the
ownership of the company’s shares and the use of their voting rights.
Shareholding by the Board of Directors and the Management Group
On December 31, 2021, the Board of Directors held and controlled
989,565 (985,646) series A shares. These shares accounted for 3.3
(3.3) % of series A shares and 2.7 (2.7) % of total shares. The number
of series K shares held and controlled by the Board was 551,008
(551,008). Total votes attached to the series A and K shares held
and controlled by the Board were 12,009,725 (12,005,806), which
accounted for 7.3 (7.3) % of the total votes of all shares.
On December 31, 2021, Kai Öistämö, the President and CEO, held
and controlled 4,000 series A shares but no series K shares. Other
Management Group members held and controlled 118,018 (101,778)
series A shares but no series K shares.
Corporate Governance Statement includes more details on the
shareholdings of the Board of Directors and the Management Group.
More information about Vaisala’s shares and shareholders are
presented on the company’s website at vaisala.com/investors.
Donations
Vaisala collaborates with the Colorado State University (CSU) in the US
in the field of weather radars, among others. In 2020, Vaisala’s Board of
Directors renewed the annual donation of 25,000 USD to the university
for three years.
Non-financial information
Disclosure of non-financial information in accordance with Finnish
Accounting Act chapter 3 a is presented in the Sustainable business
practices section as well as in the chapters Business model in Our
business section, Dashboard in the Creating value section, and Risk
management in the Governance section. The Sustainable business
practices section includes information on environmental matters, social
and employee matters, respecting human rights, as well as anti-
corruption and anti-bribery compliance.
EU sustainable finance taxonomy
The indicators required by the EU Taxonomy Regulation are reported in
the chapter EU sustainable finance taxonomy, located in the Creating
value section of the Annual Report.
Corporate Governance Statement
Corporate Governance Statement will be published as a part of the
Annual Report as well as a separate report on the company’s website
at vaisala.com/investors.
Remuneration Report
Remuneration Report will be published as a separate report on the
company’s website at vaisala.com/investors.
Near-term risks and uncertainties
COVID-19 pandemic’s impact on Vaisala’s business is depending on the
duration of this exceptional situation and development of possible new
virus variants. Component shortage may cause delays or interruptions
in deliveries or generate additional material costs. Vaisala’s delivery
capability may deteriorate due to disruptions in suppliers’ operations,
Vaisala’s production or project delivery organization, or disruptions in
incoming and/or outgoing logistics. Demand may fluctuate materially
by country or market segment.
Uncertainties in geopolitical situation may reduce or delay demand
for Vaisala’s products and services or cause delays or interruptions
in deliveries. New and changing regulations impacting product
acceptance, operation’s capability to meet changing compliance
requirements, and changes in international trade policies may cause
delays or interruptions in supply chain. Cyber risk and downtime of IT
systems may impact operations and delivery capability.
Customers’ preference for local manufacturing may reduce demand
for Vaisala’s products and services. Customers’ budgetary constraints,
complex decision-making processes, and missing financing solutions
may postpone closing of infrastructure contracts in Weather and
Environment business area.
Measures taken to mitigate impacts of the COVID-19 pandemic
Employees
Ensuring employees’ wellbeing and their health and safety has been
the most important focus area during the COVID-19 pandemic. To
enforce containment actions and safe work environment for production
workers, access to factories has been limited. Post-COVID-19 pandemic
working practices were planned with implementations beginning in the
second half of 2021.
Customers
Remote customer meetings, electronic signatures, re-routing of
shipments, remote acceptance testing and cooperation with local field
service companies and their remote support are examples of measures,
which have been taken to fulfill customer expectations.
Supplier relationships and cooperation
Strategic suppliers, which are critical to ongoing business operations,
have been assessed for their business continuity and information
reliability. Impacts of component shortages have been mitigated by
close co-operation and delivery planning together with suppliers,
purchases from spot market, and using variant components.
Communications
Vaisala has communicated regularly with multiple stakeholders:
employees, customers, suppliers, and authorities to ensure continuity
of core operations, including support and services for customers.
Digital marketing eorts have been intensified to compensate for
absence of conventional marketing events.
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Liquidity
Vaisala’s financial position and liquidity have been assessed on regular
basis.
Scenario planning
Vaisala has done scenario planning and contingency planning in order
to make sound decisions in a highly volatile operating environment.
Vaisala has identified risks related to delivery capability and demand
outlook as well as diverse challenges emerging in the operating
environment. Scenario plans and related assumptions have been
continuously updated and followed up.
Further information about risk management and risks are available
in the Annual Report’s Corporate Governance/Risk management
section and on the company’s website at vaisala.com/investors.
Events after financial year
On January 27, 2022, Vaisala announced acquisition of US-based
Whether or Knot, LLC (dba AerisWeather), a subscription-based
software company providing weather and environmental information.
The purchase price (cash and debt free) was USD 26 million (EUR 23
million), and it was paid with cash. This acquisition supports execution
of Vaisala's Weather and Environment business area’s strategy to
drive growth in Data as a Service and Software as a Service recurring
revenue businesses.
AerisWeather’s unaudited net sales in 2021 amounted to USD 3.2
million (EUR 2.7 million), operating result (EBIT) was at break-even
level, and statement of financial position totaled USD 1.3 million (EUR
1.1 million). The company’s net sales are recurring with above 100% net
revenue retention and have reached strong double-digit growth during
the past years. Following this acquisition, 17 professionals, located in
the US, transferred to Vaisala. Vaisala will report AerisWeather’s results
as part of Weather and Environment business area’s financial results as
of February 2022.
Market development and business outlook for 2022
Markets for high-end industrial instruments, life science, power
industry, and liquid measurements are expected to grow.
Markets for meteorology and ground transportation are expected
to be stable. Aviation market is expected to recover towards pre-
pandemic level. Renewable energy market is expected to grow.
Visibility to component availability remains weak and component
supply constraints are expected to continue throughout 2022.
Additional material costs related to spot purchases are expected to
remain at high level during 2022. Vaisala estimates that its full-year
2022 net sales will be in the range of EUR 465–495 million and its
operating result (EBIT) will be in the range of EUR 55–70 million.
Board of Directors’ proposal for dividend
The parent company’s distributable earnings amount to EUR
166,440,852.21, of which the result for the period is EUR 14,983,135.68.
The Board of Directors proposes to the Annual General Meeting
that dividend of EUR 0.68 per share be paid out of distributable
earnings totaling approximately EUR 24.5 million and the rest to be
carried forward in the shareholders’ equity. No dividend will be paid for
treasury shares held by the company.
There have been no significant changes in the company’s financial
position since the close of the financial period. According to the Board
of Directors, the proposed dividend distribution does not endanger the
company’s financial standing.
Annual General Meeting 2022
Vaisala Corporation’s Annual General Meeting will be held on
Tuesday March 29, 2022. Board of Directors of Vaisala has resolved
on exceptional procedure for the meeting based on the temporary
legislative act approved by the Finnish Parliament on May 7, 2021. The
company has resolved to take actions enabled by the act in order to
hold the meeting in a predictable manner, taking into account the
health and safety of the company’s shareholders, personnel and other
stakeholders. Notice to the Annual General Meeting is available at the
company’s website vaisala.com/agm where the shareholders also can
follow the meeting via live webcast.
Vantaa, February 17, 2022
Vaisala Corporation
Board of Directors
The forward-looking statements in this Board of Directors’ Report are
based on the current expectations, known factors, decisions and plans
of Vaisala’s management. Although the management believes that
the expectations reflected in these forward-looking statements are
reasonable, there is no assurance that these expectations would prove
to be correct. Therefore, the results could dier materially from those
implied in the forward-looking statements, due to for example changes
in the economic, market and competitive environments, regulatory or
other government-related changes, or shifts in exchange rates.
OUR BUSINESS SUSTAINABLE BUSINESS PRACTICESCREATING VALUE GOVERNANCE FINANCIALS
Key figures Board of Directors’ Report Financial statements 2021 Auditor’s report
102
CONSOLIDATED FINANCIAL
STATEMENTS 103
Consolidated statement of income 103
Consolidated statement of
comprehensive income 103
Consolidated statement of
financial position 104
Consolidated cash flow statement 106
Consolidated statement of
changes in equity 107
The audited financial statements comprise the consolidated statement of income, consolidated
statement of comprehensive income, consolidated statement of financial position, consolidated cash
flow statement, consolidated statement of changes in equity and notes to the consolidated financial
statements, as well as the parent company income statement, parent company balance sheet, parent
company cash flow statement and notes to the parent company financial statements.
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS 108
Financial development
1. Reportable segments 110
2. Geographical segments 112
3. Revenue from contracts
with customers 112
4. Other operating income
and expenses 113
5. Personnel expenses and
number of personnel 114
6. Pension obligations 114
7. Share-based payments 116
8. Research and development
expenditure 117
9. Financial income and expenses 117
10. Income taxes 118
11. Earnings per share 122
Net working capital
12. Trade receivables and
other receivables 122
13. Inventories 123
14. Trade payables and
other liabilities 124
15. Provisions 124
Intangible and tangible assets
16. Intangible and tangible assets 125
17. Leases 131
Capital structure
18. Shareholders’ equity 133
19. Financial risk management 135
20. Non-current receivables 136
21. Financial assets and liabilities 136
22. Interest-bearing liabilities
and other adjustments in
cash flow statement 139
23. Cash and cash equivalents 139
24. Contingent liabilities and
pledges given 140
Consolidation
25. Business combinations 140
26. Subsidiaries 141
27. Associated company 141
Other notes
28. Related party transactions 142
29. Auditor’s fees 145
30. Application of new and revised
standards and interpretations in
issue but not yet eective 145
31. Events after financial year 148
PARENT COMPANY FINANCIAL
STATEMENTS 149
Parent company income statement 149
Parent company balance sheet 150
Parent company cash flow
statement 152
NOTES TO THE PARENT COMPANY
FINANCIAL STATEMENTS 153
1. Accounting principles 153
2. Net sales 154
3. Other operating income 155
4. Personnel expenses and
number of personnel 156
5. Depreciation, amortization and
impairment 157
6. Financial income and expenses 157
7. Direct taxes 157
8. Non-current assets 158
9. Other receivables 161
10. Deferred assets 161
11. Deferred tax assets and
liabilities 162
12. Provisions 162
13. Shareholders’ equity 162
Financial statements 2021
14. Other non-current and current
liabilities 163
15. Loans from financial
institutions 163
16. Accrued expenses and
deferred income 164
17. Receivables and liabilities
from other companies in
Vaisala group 164
18. Contingent liabilities and
pledges given 164
19. Auditor’s fees 164
SIGNING OF THE BOARD OF
DIRECTOR’S REPORT AND
FINANCIAL STATEMENTS 165
AUDITOR’S REPORT 166
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Consolidated statement of income
EUR million Note
Jan 1–Dec 31,
2021
Jan 1–Dec 31,
2020
Net sales 1, 2, 3 437.9 379.5
Cost of goods sold 5, 13, 16 -196.0 -166.6
Gross profit 241.8 212.9
Sales, marketing and administrative costs 5, 7, 16 -131.2 -116.0
Research and development costs 5, 7, 8, 16 -55.3 -53.2
Other operating income and expenses 4 -5.2 1.1
Operating result 50.1 44.8
Share of result in associated company 27 0.2 0.2
Financial income and expenses 9 -2.1 -3.6
Result before taxes 48.3 41.3
Income taxes 10 -8.9 -8.5
Result for the financial year 39.5 32.8
Attributable to
Owners of the parent company 39.0 32.8
Non-controlling interests 0.5 0.0
Result for the financial year 39.5 32.8
Earnings per share for result attributable to the equity holders
of the parent company 11
Earnings per share, EUR 1.08 0.91
Diluted earnings per share, EUR 1.07 0.91
Consolidated statement of comprehensive income
EUR million Note
Jan 1–Dec 31,
2021
Jan 1–Dec 31,
2020
Items that will not be reclassified to profit or loss (net of taxes)
Actuarial profit (loss) on post-employment benefits 6 -0.1 0.0
Total -0.1 0.0
Items that may be reclassified subsequently to profit or loss
Translation dierences 4.5 -4.0
Total 4.5 -4.0
Total other comprehensive income 4.3 -4.0
Comprehensive income for the financial year 43.8 28.9
Attributable to
Owners of the parent company 43.4 28.8
Non-controlling interests 0.5 0.0
Comprehensive income for the financial year 43.8 28.9
The notes are an essential part of the financial statements.
Consolidated financial statements
OUR BUSINESS
SUSTAINABLE BUSINESS PRACTICES
CREATING VALUE GOVERNANCE FINANCIALS
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Consolidated statement of financial position
EUR million Note Dec 31, 2021 Dec 31, 2020
Assets
Non-current assets
Intangible assets 16 56.9 63.6
Property, plant and equipment 16 94.1 83.9
Right-of-use assets 17 11.1 12.5
Investments in shares 0.1 0.1
Investment in associated company 27 1.3 1.1
Non-current receivables 20 0.9 0.9
Deferred tax assets 10 9.2 7.3
Total non-current assets 173.5 169.5
Current assets
Inventories 13 49.9 44.5
Trade and other receivables 12 73.5 64.0
Contract assets and other accrued revenue 3 28.1 24.2
Income tax receivables 5.1 4.3
Cash and cash equivalents 23 77.9 45.4
Total current assets 234.5 182.4
Total assets 408.0 351.8
EUR million Note Dec 31, 2021 Dec 31, 2020
Equity and liabilities
Equity 18
Share capital 7.7 7.7
Other reserves 7.0 5.6
Translation dierences 1.7 -2.8
Treasury shares -4.6 -6.3
Retained earnings 218.0 200.8
Total equity attributable to owners of parent company 229.6 205.1
Non-controlling interests 0.7 0.4
Total equity 230.3 205.5
Non-current liabilities
Interest-bearing borrowings 21 40.0 40.0
Interest-bearing lease liabilities 17 7.7 9.2
Post-employment benefits 6 2.7 2.3
Deferred tax liabilities 10 6.7 7.7
Provisions 15 0.3 0.1
Other non-current liabilities 21 1.3 2.6
Total non-current liabilities 58.6 62.0
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Key figures Board of Directors’ Report Financial statements 2021 Auditor’s report
105
EUR million Note Dec 31, 2021 Dec 31, 2020
Current liabilities
Interest-bearing borrowings 21 0.1 5.2
Interest-bearing lease liabilities 17 2.4 2.7
Trade and other payables 14 83.9 52.3
Contract liabilities and other deferred revenue 3 29.0 20.9
Income tax liabilities 1.8 1.5
Provisions 15 2.0 1.7
Total current liabilities 119.1 84.3
Total liabilities 177.7 146.2
Total equity and liabilities 408.0 351.8
The notes are an essential part of the financial statements.
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Consolidated cash flow statement
EUR million Note
Jan 1–Dec 31,
2021
Jan 1–Dec 31,
2020
Cash flow from operating activities
Result for the financial period 39.5 32.8
Depreciation, amortization and impairment 16 21.6 21.1
Financial income and expenses 9 2.1 3.6
Gains and losses on sale of intangible assets and property, plant
and equipment 4 0.0 -0.1
Share of result in associated company 27 -0.2 -0.2
Income taxes 10 8.9 8.5
Other adjustments 22 3.1 -5.6
Inventories, increase (-) / decrease (+) 13 -6.7 -1.8
Non-interest bearing receivables, increase (-) / decrease (+) 12 -11.5 12.6
Non-interest bearing liabilities, increase (+) / decrease (-) 14 34.7 -18.4
Changes in working capital 16.6 -7.5
Financial items paid/received 9 -0.2 -3.5
Income taxes paid 10 -11.2 -8.2
Cash flow from operating activities 80.0 41.0
Cash flow from investing activities
Acquisition of subsidiaries, net of cash acquired 25 - -0.2
Capital expenditure on intangible assets and property,
plant and equipment 16 -19.2 -31.0
Proceeds from sale of intangible assets and property,
plant and equipment
4 0.1 0.1
Proceeds from sale of shares - 0.1
Cash flow from investing activities -19.1 -31.0
Note
Jan 1–Dec 31,
2021
Jan 1–Dec 31,
2020
Cash flow from financing activities
Dividends paid 18 -22.0 -22.0
Change in loan receivables -0.0 0.1
Proceeds from borrowings 21 45.0 100.1
Repayment of borrowings 21 -49.9 -95.0
Principal payments of lease liabilities 17 -3.1 -3.3
Cash flow from financing activities -30.0 -20.0
Change in cash and cash equivalents, increase (+) / decrease (-) 30.8 -10.0
Cash and cash equivalents at the beginning of the financial year 45.4 56.4
Change in cash and cash equivalents 30.8 -10.0
Eect from changes in exchange rates 1.7 -1.0
Cash and cash equivalents at the end of the financial year 23 77.9 45.4
The notes are an essential part of the financial statements.
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Key figures Board of Directors’ Report Financial statements 2021 Auditor’s report
107
Consolidated statement of changes in equity
EUR million Note
Share
capital
Other
reserves
Translation
dierences
Treasury
shares
Retained
earnings
Equity
attributable to
owners of the
parent company
Non-
controlling
interests Total
Equity at Dec 31, 2019 7.7 7.0 1.3 -7.9 190.0 198.0 0.3 198.3
Result for the financial year 18 32.8 32.8 0.0 32.8
Other comprehensive income 18 -0.0 -4.0 0.0 -4.0 -4.0
Dividend distribution 18 -22.0 -22.0 -22.0
Share-based payments 7, 18 -1.4 1.6 0.2 0.2
Transfer between items 18 0.0 -0.0
Changes in non-controlling interests
that did not result in changes in control -0.0 -0.0 0.0
Equity at Dec 31, 2020 7.7 5.6 -2.8 -6.3 200.8 205.1 0.4 205.5
Result for the financial year 18 39.0 39.0 0.5 39.5
Other comprehensive income 18 0.0 4.4 -0.1 4.3 4.3
Dividend distribution 18 -22.0 -22.0 -22.0
Share-based payments 7, 18 1.3 1.7 2.9 2.9
Transfer between items 18 0.0 -0.0
Changes in non-controlling interests
that did not result in changes in control 0.2 0.2 -0.2
Equity at Dec 31, 2021 7.7 7.0 1.7 -4.6 218.0 229.6 0.7 230.3
OUR BUSINESS SUSTAINABLE BUSINESS PRACTICESCREATING VALUE GOVERNANCE FINANCIALS
Key figures Board of Directors’ Report Financial statements 2021 Auditor’s report
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Basic information
Vaisala is a global leader in weather, environmental and industrial measurement. With 85 years of expe-
rience, Vaisala provides measurement solutions and services for chosen weather-related and industrial
markets.
The parent company, Vaisala Corporation, is a Finnish public limited company, domiciled in Vantaa,
Finland. The registered address is Vanha Nurmijärventie 21, FI-01670 Vantaa, Finland (P.O. Box 26, FI-00421
Helsinki). The company’s Business ID is 0124416-2.
These financial statements have been approved for publication by the Board of Directors of Vaisala
Corporation on February 17, 2022. Under the Finnish Companies Act, shareholders have the right to
approve, reject or make changes to the financial statements in the Annual General Meeting to be held after
the publication. A copy of the consolidated financial statements is available on the company’s website
at vaisala.com/investors or at the parent company head oce at the address Vanha Nurmijärventie 21,
FI-01670 Vantaa, Finland (P.O. Box 26, FI-00421 Helsinki).
Accounting principles for the consolidated financial statements
The consolidated financial statements of Vaisala have been prepared in accordance with International
Financial Reporting Standards (IFRS) approved for adoption by the European Union, including
International Accounting Standards (IAS) and the SIC and IFRIC Interpretations valid on December 31,
2021. In the Finnish Accounting Act and ordinances based on the provisions of the Act, IFRS refer to the
standards and their interpretations adopted in accordance with the procedures laid down in regulation
(EC) No. 1606/2002 of the European Parliament and of the Council. The notes to the consolidated financial
statements are also in accordance with the Finnish accounting and corporate law.
The consolidated financial statements are presented in millions of euros, if not otherwise stated. All
presented figures have been rounded and consequently the sum of individual figures may deviate from
the presented sum. Financial statements are based on original acquisition costs, if not otherwise stated
in the accounting principles. In the text sections figures from previous years are presented in parenthesis.
Calculation of key figures and alternative performance measures are presented in the Board of Directors’
Report.
Consolidation principles
Subsidiaries
The consolidated financial statements include the parent company Vaisala Corporation and those
subsidiaries in which the group has control. The group has control of an entity when it is exposed, or has
rights, to variable returns from its involvement with the investee and has the ability to aect those returns
through its power over the investee. Subsidiaries, acquired or founded during the financial period, are
consolidated from the date on which control is transferred to the group and are no longer consolidated
from the date that control ceases.
Business combinations are accounted for using the acquisition method. The consideration transferred
is the fair value of transferred assets, issued equity interests and liabilities incurred to former owners. Any
contingent consideration is recognized at fair value at the acquisition date and classified as a liability or
equity. Contingent considerations classified as a liability are measured at fair value on each reporting
date with changes recognized in consolidated statement of income. Identifiable assets acquired as well
as assumed liabilities and contingent liabilities are measured initially at their fair values on the date of
acquisition without deducting non-controlling interest. The amount by which the consideration transferred,
the amount of any non-controlling interest in the acquiree and the acquisition date fair value of any
previous equity interest exceeds the fair value of identifiable net assets is recognized as goodwill. If the
consideration transferred is lower than the acquired net assets, the gain is recognized in the consolidated
statement of income on the acquisition date. All acquisition-related costs, except for the costs to issue
debt or equity securities, are expensed in the periods in which the costs are incurred and the services are
received.
The group’s intercompany transactions, unrealized margins on internal deliveries, receivables and
liabilities as well as dividends are eliminated. Unrealized losses on internal transactions are also eliminated
unless costs are not recoverable or the loss results from an impairment. The consolidated financial
statements are prepared applying consistent accounting principles to similar transactions and other events
under equal conditions.
Associated companies
The share of results of associated companies, i.e. companies of which Vaisala owns 20–50% or over which
it otherwise has significant influence, are included in the consolidated financial statements applying the
equity method. If Vaisala’s share of an associated company’s losses exceeds the carrying amount of
the investment, the investment is recognized in the consolidated statement of financial position at zero
Notes to the consolidated financial statements
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Key figures Board of Directors’ Report Financial statements 2021 Auditor’s report
109
value and further losses are not recognized unless the group has incurred obligations on behalf of the
associated company. Unrealized gains on transactions between the group and its associated companies
have been eliminated to the extent of the group’s interest in the associated companies. The group’s share
of associated companies’ results is presented in the consolidated statement of income as a separate item
before ’financial income and expenses’. Investments in associated companies are initially recognized at cost
and the carrying amount is increased or decreased by the share of post-acquisition results. Distribution of
profit received from an investment reduces the carrying amount of the results.
Non-controlling interests
The non-controlling interests’ share of the result and of the comprehensive income for the financial
year are presented in the consolidated statement of income and in the consolidated statement of
comprehensive income. The non-controlling interests’ share of the equity is presented as a separate item in
the consolidated statement of financial position.
Foreign currency translation
Items relating to the consolidated result and financial position are measured using the currency of the
primary economic environment in which the entity operates (“the functional currency”). The consolidated
financial statements have been presented in euros, which is the parent company’s functional and
presentation currency.
Transactions in foreign currencies are recorded in the functional currency using the exchange rate on
the date of transaction. Receivables and payables in foreign currency have been valued at the rates quoted
by European Central Bank on the last trading date of the financial year. Exchange rate dierences resulting
from the settlement of monetary items or from the presentation of items in the financial statements
at dierent exchange rates from which they were originally recognized during the financial period or
presented in the previous financial statements, are recognized as financial income or expenses in the
financial period in which they arise.
Statements of financial position of subsidiaries in other functional currency than euro have been
translated into euros using the rates quoted by European Central Bank on the last trading date of
the financial year. Translating statements of income monthly average exchange rates have been used.
Translating net income for the financial year using dierent exchange rates in the consolidated statements
of income and in the consolidated statement of financial position, results in a translation dierence,
which is recognized in other comprehensive income. Translation dierences arising from the elimination
of the acquisition cost of foreign subsidiaries and the translation of the accumulated equity items after
the acquisition are recognized in other comprehensive income. When a foreign subsidiary or associated
company is disposed of or partly disposed of, the translation dierence is recognized in the consolidated
statement of income as part of the gain or loss on the sale.
Goodwill or fair value adjustments arising from the acquisition of a foreign entity are treated as assets
and liabilities in the functional currency of the foreign entity and are translated at the rate of the last
trading date of the financial year.
Key exchange rates
Average rates Period end rates
2021 2020 Dec 31, 2021 Dec 31, 2020
USD 1.1894 1.1384 1.1326 1.2271
CNY 7.6758 7.8807 7.1947 8.0225
JPY 130.00 121.51 130.38 126.49
GBP 0.8633 0.8853 0.8403 0.8990
New and amended IFRS standards that are eective for the year 2021
Vaisala has adopted the following new or revised IFRSs from January 1, 2021 in these consolidated financial
statements. Their adoption has not had no impact on the disclosures or on the amounts reported in these
financial statements.
Interest rate benchmark reform amendments to IFRS 9, IFRS 7, IFRS 4 and IFRS 16
In the prior year, the group adopted the Phase 1 amendments of Interest Rate Benchmark Reform
(amendments to IFRS 9/IAS 39 and IFRS 7) and in the current year, the group adopted the Phase 2
amendments of Interest Rate Benchmark Reform (amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and
IFRS16). These amendments had no impact on these financial statements as the group does not apply
hedge accounting.
COVID-19-related rent concessions amendment to IFRS 16
In the prior financial year, COVID-19-related rent concessions (amendment to IFRS 16) and in the current
financial year, the extension of the amendment had no impact on these financial statements as Vaisala as a
lessee has not received any rent concessions occurring as a direct consequence of COVID-19.
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Key figures Board of Directors’ Report Financial statements 2021 Auditor’s report
110
Accounting principles requiring management judgment and the main uncertainty factors relating to
estimates
The preparation of financial statements in accordance with IFRS requires management to make estimates
and judgment in the application of the accounting policies. The financial statements are based on
estimates and assumptions concerning the future, the outcome of which may dier from the estimates and
assumptions made. The estimates and judgments made are based on past experience and other factors,
such as assumptions about future events that may reasonably be expected to occur in the circumstances.
Estimates and assumptions are reviewed on a regular basis.
Estimates and judgment have been used in particular in the following areas for which significant
accounting policies and accounting estimates and judgments have been described in the accompanying
notes:
• Revenue recognition (note 3) (judgment and estimate)
• Income taxes (note 10) (judgment and estimate)
• Allowances for excess and obsolete inventory (note 13) (estimate)
• Fair value allocation of purchase price in business combinations (notes 16 and 25) (estimate)
• Impairment testing (note 16) (estimate)
• Leases (note 17) from lessee’s perspective (judgment)
In addition, estimates, judgment and assumptions are related to the following areas:
• With regard to pension obligations (note 6) assumptions in actuarial calculations related to e.g.
discount interest rate, inflation and development of salary and pension indexes (assumption)
• With regard to share-based payments (note 7) estimate related to e.g. profitability forecasts and
attrition of participants benefiting from the share-based payment plans (estimate)
• With regard to warranty provision (note 15) estimate related to future costs (estimate)
• With regard to leases (note 17) from lessor's perspective estimate related to exercise of extension and
termination option (estimate)
• With regard to credit loss allowance for trade receivables and contract assets (note 21) estimate
related to expected credit loss risk for dierent groups of receivables (estimate)
Financial development
1. REPORTABLE SEGMENTS
Accounting principles
Vaisala has two operating and reportable segments, which are based on the type of business operations:
Weather and Environment Business Area and Industrial Measurements Business Area. Operating segments
have not been aggregated to build the reportable segments.
Operating segments are based on the management reports reviewed by Vaisala Management Group,
which is the chief operating decision-maker. Vaisala Management Group is responsible for allocating
resources and assessing performance of the operating segments. Vaisala Management Group assesses
the performance of the operating segment based on the operating result. The reporting provided to
Vaisala Management Group is prepared in consistency with the principles of IFRS consolidated financial
statements. Income and expenses related to discontinued businesses are not allocated to operating
segments and are presented in Other operations. Transfer pricing between segments is based on arm’s
length principle.
Weather and Environment Business Area serves selected weather-dependent customers where
accurate, real-time, uninterrupted, and reliable weather data is essential to run ecient operations. Main
markets are meteorology, aviation, ground transportation and renewable energy.
Industrial Measurements Business Area serves a wide range of industrial customers. It oers a broad
range of accurate and reliable measurement instruments, continuous monitoring systems, and services
that help the customers optimize processes, improve eciency, minimize energy consumption, and
ensure the high quality of the end-products. Main markets are high-end humidity and carbon dioxide
measurements, continuous monitoring systems, liquid measurements, and new markets.
Revenue recognition principles are presented in note 3, Revenue from contracts with customers and 17,
Leases.
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111
Reportable segments
2021
EUR million
Industrial
Measurements
Weather and
Environment
Other
operations Vaisala total
Products 165.9 154.4 320.3
Projects 63.6 63.6
Services 15.1 36.7 51.8
Lease income*
)
2.1 2.1
Net sales 181.0 256.9 437.9
Performance obligations satisfied
at a point in time 178.3 168.3 346.6
Performance obligations satisfied
over time 2.7 86.5 89.2
Lease income recognized
on a straight-line basis*
)
2.1 2.1
Net sales 181.0 256.9 437.9
Operating result 43.9 7.6 -1.4 50.1
Share of result in associated company 0.2
Financial income and expenses -2.1
Result before taxes 48.3
Income taxes -8.9
Result for the financial year 39.5
*
)
Changes in accounting principles are presented in note 17, Leases.
Reportable segments
2020
EUR million
Industrial
Measurements
Weather and
Environment
Other
operations Vaisala total
Products 129.9 137.4 267.3
Projects 59.3 59.3
Services 14.1 38.8 52.9
Net sales 143.9 235.5 379.5
Performance obligations satisfied
at a point in time 141.2 154.2 295.5
Performance obligations satisfied
over time 2.7 81.3 84.0
Net sales 143.9 235.5 379.5
Operating result 31.6 14.6 -1.4 44.8
Share of result in associated company 0.2
Financial income and expenses -3.6
Result before taxes 41.3
Income taxes -8.5
Result for the financial year 32.8
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2. GEOGRAPHICAL SEGMENTS
Vaisala’s reportable segments operate in geographical areas which are Americas, APAC and EMEA.
1)
Geographical segments
2021
EUR million
Net sales, by
destination
country
2)
Net sales,
by location
country
3)
Non-current
assets
3)
Americas 150.2 137.8 37.3
of which United States 116.6 128.2 37.1
APAC 144.7 83.3 3.6
EMEA 143.0 388.7 123.4
of which Finland 7.8 299.7 111.3
Eliminations -172.0
Total 437.9 437.9 164.4
Geographical segments
2020
EUR million
Net sales, by
destination
country
2)
Net sales,
by location
country
3)
Non-current
assets
3)
Americas 134.9 124.3 35.7
of which United States 109.9 117.5 35.4
APAC 110.4 67.1 4.8
EMEA 134.2 324.5 121.7
of which Finland 9.8 258.4 111.1
Eliminations -136.5
Total 379.5 379.5 162.2
1)
Americas: North and South America, APAC: Asia Pacific, EMEA: Europe, Middle East and Africa
2)
Sales to external customers have been presented as net sales by destination country
3)
Net sales and non-current assets have been presented according to the group’s and associated companies’ countries
3. REVENUE FROM CONTRACTS WITH CUSTOMERS
Accounting principles
Vaisala’s net sales consist of revenue recognized from contracts with customers and lease income. Net
sales from contracts with customers are divided into products, projects and services. Indirect taxes
and discounts have been deducted from sales revenue. Exchange rate dierences are recognized in the
financial income and expenses.
Product net sales include revenue from products, spare parts and system deliveries. A system delivery
contains a standard product delivery with limited amount of configuration. Each distinct product delivery
is a performance obligation under IFRS 15. Revenue from the sale of products is recognized at a point in
time when the control is transferred to the customer.
Projects are integrated projects, in which observation solutions, consisting of products, services
and software, are delivered. Solutions are integrated to customer systems according to customer
specifications. Therefore, one project is one performance obligation under IFRS 15. Revenue for all projects
is recognized over time using percentage of completion method. Progress is measured by cost-to-cost
method, comparing incurred costs and forecasted costs, as it best describes the satisfaction of a
performance obligation by transferring the promised asset to a customer. Projects meet the over-time
revenue recognition criteria mainly by creating an asset without an alternative use and Vaisala having an
enforceable right to payment for performance completed to date.
Services are divided into service contracts and one-o service deliverables. Services may include
maintenance, calibration and repair, modernization, extended warranties and data-based solutions
supporting decisions in weather-dependent operations. Service contracts are continuous services including
for example extended warranty, availability of customer support and availability of spare part delivery. One
service contract or one service deliverable is one performance obligation. Service contracts are recognized
over time or at a point of time depending on the nature of the service and content of a contract. In case of
one-o request services, the revenue is recognized at a point in time when the service has been rendered.
Standard warranty period for products is one year and 2, 5 or 10 years for selected products. Standard
warranty period for services is 6 or 12 months. Extended warranty is a separately sold and priced service
over a separately agreed period. Revenue for extended warranty is recognized over time starting at the
time of standard warranty expiration. Provision for warranty costs is recognized as described in Note 15,
Provisions.
Accounting principles requiring management judgment and the main uncertainty factors relating to
estimates
Revenue recognition over time under IFRS 15 requires management judgment related to cost throughout
the project delivery. When the outcome of a project cannot be estimated reliably, project costs are
recognized as expenses in the same period when they arise and project revenues only to the extent
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of project costs incurred where it is probable that those costs will be recoverable. When it is probable
that total costs necessary to complete the project will exceed total project revenue, the expected loss is
recognized as an expense immediately.
Additionally, judgment is exercised in defining the timing of revenue recognition, estimating the
probability of payments related to contracts with customers, defining performance obligations and
combining contracts. Judgment related to all of these factors may have an impact on timing and/or
amount of revenue recognized.
Disaggregation of revenue
Disaggregation of revenue is presented in Note 1, Reportable segments and Note 2, Geographical
segments.
Payment terms
Payment terms vary based on geographical areas. In product and service business, the standard payment
term is 30 days net, but in some areas prepayments are commonly used. Project invoicing is based on
milestones and typically follows the general project delivery terms (where 30% is advance payment,
60% against delivery documents and 10% after site acceptance test) or terms as per contract. In project
business the most common payment terms are letter of credit or as per contract.
Vaisala takes advantage of IFRS 15 practical expedient related to the significant financing component.
In those cases, in which Vaisala expects, at contract inception, that the period between when Vaisala
transfers a promised good or service to a customer and when the customer pays for that good or service
will be one year or less, Vaisala does not adjust the promised amount of consideration for the eects
of a significant financing component. Additionally, financing component is considered only if significant
prepayment is received over one year in advance before related delivery.
Contract balances
The following table provides information about receivables, contract assets and contract liabilities from
contracts with customers included in the statement of financial position.
Assets and liabilities related to contracts with customers
EUR million Dec 31, 2021 Dec 31, 2020
Trade receivables 59.2 52.2
Contract assets 28.1 24.2
Contract liabilities 28.4 20.9
Contract assets include the balance of project and service revenue recognized but not yet invoiced.
In general, most of project revenue is recognized after the product manufacturing as percentage of
completion increases and most of the performance obligation is satisfied. According to general project
delivery terms, majority of project is invoiced before the delivery. Therefore, the amount of contract assets
is typically at its highest between product manufacturing phase of the project and delivery of the product
to the customer. For services, which are satisfied over time, the customer is mainly invoiced in advance and
only in some cases in arrears after the customer has received or consumed the service. Arrears invoicing
generates contract asset balance as revenue is recognized before invoicing.
Contract liabilities include the balance of projects, services and products invoiced but revenue not yet
recognized as well as customer payments related to contracts not yet invoiced. Project-related contract
liabilities often arise in the early stages of a project, when the prepayment has been invoiced, but the
project is only at an early stage and there is none or little revenue recognized under percentage of
completion method. Services, which are recognized over time, are often invoiced in advance and therefore
contract liability is generated in the beginning of service period. For products and services, which are
recognized at a point in time, contract liability is generated when customer has been invoiced, but
performance obligation has not been satisfied and consequently revenue has not been recognized.
In 2021, Vaisala recognized EUR 13 (14) million revenue that was included in the contract liability balance
at the beginning of the financial year.
At the end of financial year 2021, the order book was EUR 160.0 (137.8) million, of which the
performance obligations that were unsatisfied or partially unsatisfied amounted to EUR 159.4 (137.8) million
and the amount related to lease income was EUR 0.6 (-) million. Of the performance obligations that were
unsatisfied or partially unsatisfied EUR 124.7 (100.1) million is estimated to be recognized as revenue in
2022 and EUR 34.7 (37.6) million is estimated to be recognized later. The whole order book related to lease
agreements is estimated to be recognized as revenue in 2022.
4. OTHER OPERATING INCOME AND EXPENSES
Other operating income
EUR million 2021 2020
Indemnities 0.1 0.0
Gain on the disposal of tangible assets - 0.1
Gain on items related to business combinations - 2.0
Income related to termination of a contract - 0.2
Other 0.2 0.2
Total 0.3 2.5
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Other operating expenses
EUR million 2021 2020
Loss on items related to business combinations 4.5 -
Restructuring expenses 0.4 1.4
Loss on the disposal of tangible assets 0.0 0.0
Other 0.6 -
Total 5.5 1.4
Other operating income and expenses, net -5.2 1.1
5. PERSONNEL EXPENSES AND NUMBER OF PERSONNEL
Personnel expenses
EUR million 2021 2020
Salaries 141.1 124.9
Share-based payments 5.0 4.0
Social costs 11.4 11.1
Pensions
Defined benefit plans 0.1 0.0
Defined contribution plans 16.6 14.1
Total 174.3 154.1
Personnel expenses by function
EUR million 2021 2020
Procurement and production 49.7 45.3
Sales, marketing and administration 74.3 64.7
Research and development 50.2 44.1
Total 174.3 154.1
Personnel, average by business area
Persons 2021 2020
Industrial Measurements 486 427
Weather and Environment 780 820
Other operations 701 682
Total 1,967 1,929
Personnel, average by geographical area
Persons 2021 2020
Americas 284 293
APAC 165 172
EMEA (excluding Finland) 231 234
Finland 1,287 1,230
Total 1,967 1,929
Information on share-based payments is disclosed in Note 7, Share-based payments.
Information on key management compensation is disclosed in Note 28, Related party transactions.
6. PENSION OBLIGATIONS
Accounting principles
The group has several pension plans around the world based on local practices. These pension schemes
are classified either as defined contribution or as defined benefit plans. In defined contribution plans
expenses are recognized in the statement of income on an accrual basis. TyEL pensions managed in
insurance companies are defined contribution plans.
In defined benefit pension plans, liability to be recognized is the net amount of the present value of the
defined benefit obligation in the end of the financial year and the fair value of the plan assets adjusted by
the unamortized portion of unrecognized past service cost. The defined benefit obligation is calculated
by actuaries independent of Vaisala and it is based on the projected unit credit method in which the
estimated future cash flows are discounted to their present value using the interest rates approximating
high quality corporate bonds. Pension costs are recognized in the statement of income on an accrual basis
over years of service. Actuarial gains and losses are recognized in statement of comprehensive income.
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Defined benefit plans
The defined benefit plans are in the parent company. The additional pension coverage of parent company
personnel was arranged by Vaisala Pension Fund that was closed on January 1, 1983. The pension fund
liability was transferred to a pension insurance company on December 31, 2005 and the fund was dissolved
in 2006. The company retains, however, an obligation under IAS 19 for future index and salary increases in
terms of individuals covered by the Pension Fund who are employed by the company.
Defined benefit pension liability
EUR million 2021 2020
Fair value of funded obligations 4.6 4.9
Fair value of assets -3.8 -4.4
Net liability in the statement of financial position at Dec 31 0.8 0.6
Amounts recognized in the statement of income and the statement of other comprehensive income
EUR million 2021 2020
Current service cost 0.0 0.0
Interest 0.0 0.0
Expense recognized in the statement of income 0.0 0.0
Net actuarial gain and loss 0.2 -0.0
Total recognized in the statement of income and
the statement of other comprehensive income
0.2 -0.0
Pension costs in the statement of income have been recognized in sales, marketing and administrative
costs.
Present value of obligation
EUR million 2021 2020
Changes in the present value of obligation
Present value of obligation Jan 1 4.9 4.9
Current service cost 0.0 0.0
Interest cost 0.0 0.0
Remeasurements
Actuarial gain (-) / loss (+) arising from changes in
financial assumptions 0.2 0.1
Experience adjustment -0.1 0.4
Benefits paid -0.4 -0.4
Present value of obligation Dec 31 4.6 4.9
Changes in the fair value of plan assets
EUR million 2021 2020
Fair value of plan assets Jan 1 4.4 4.3
Interest income on assets 0.0 0.0
Remeasurements
Net return on plan assets -0.1 0.5
Benefits paid -0.4 -0.4
Contributions -0.1 -0.0
Fair value of plan assets Dec 31 3.8 4.4
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Changes of liabilities presented in the statement of financial position
EUR million 2021 2020
Liabilities Jan 1 0.6 0.6
Expense (+) / income (-) recognized in statement of income 0.0 0.0
Total recognized in other comprehensive income 0.2 -0.0
Contributions paid 0.1 0.0
Liabilities Dec 31 0.8 0.6
Actuarial assumptions used
2021 2020
Discount rate, % 0.87 0.36
Rate of salary increase, % 2.90 2.01
Rate of inflation, % 1.94 1.05
Annual adjustments to pensions, % 2.18 1.29
Sensitivity of the net liability changes in the principal assumptions
Assumption
Change
in assumption
Increase
in assumption
Decrease
in assumption
Discount rate 0.25% 2.46% decrease 2.57% increase
Salary increase rate 0.25% 0.04% increase 0.04% decrease
Pension increase rate 0.25% 14.25% increase 13.90% decrease
Assumption Increase by one year Decrease by one year
Life expectancy at birth 5.67% increase 5,37% decrease
The sensitivity analyses presented above are based on the assumption that if one assumption changes, all
other assumptions remain unchanged. In practice, this is unlikely, and changes in some assumptions may
correlate with each other. The sensitivity of defined benefit obligation to changes in significant actuarial
assumptions has been calculated using the same method as that used to calculate the pension liability
recognized in the statement of financial position.
7. SHARE-BASED PAYMENTS
Accounting principles
Group’s share-based payments are related to share-based incentive plans. Share-based payments are
recognized as costs during the vesting period. The costs are based on an estimate of the number of shares
to be paid at the end of vesting period. Assumptions, on which estimates are based, are updated whenever
changes occur and the eect of changes in assumptions are recognized in the statement of income.
As of January 1, 2018, the cost of the share (equity-settled) part as well as the cash (cash-settled) part
of the share-based payments correspond to the value of share (Vaisala’s series A) closing price on the
grant date of the share-based incentive plan less expected dividends.
Until the end of 2017, the cost of the share part of the share-based payments corresponded to the value
of share (Vaisala’s series A) closing price on the grant date of the share-based incentive plan, and the cash
part of the share-based payments was valued at the closing price of the share in the end of the financial
year.
Expenses arising from share-based incentive plans
EUR million 2017 2018 2019 2020 2021 Total
Share-based incentive plan 2017 1.1 1.3 1.5 0.3 4.2
Share-based incentive plan 2018 0.6 1.2 1.5 0.5 3.8
Share-based incentive plan 2019 0.6 1.6 1.8 4.0
Share-based incentive plan 2020 0.6 1.8 2.4
Share-based incentive plan 2021 1.0 1.0
Total 1.1 1.9 3.3 4.0 5.0 15.3
Share-based incentive plans
The share issue without payment approved by Vaisala’s Annual General Meeting on April 10, 2018 doubled
the total number of series K and A shares. All share related figures have been adjusted to reflect the
increased number of shares.
Share-based incentive plans are targeted to the Group key employees. The performance criterion for
2017 and 2018 plans was based on the group’s profitability in respective calendar year. From 2019 onwards
the performance criteria of the plans are based on the development of the total shareholder return (TSR)
and the group’s profitability during the three-year plan period. The rewards are paid partly in Vaisala’s
series A shares and partly in cash. The cash portion covers taxes and tax-related costs arising from the
reward to a key employee. No reward is paid if a key employee’s employment or service ends before
the reward payment date. From the plan 2019-2021 onwards, Vaisala’s Board of Directors requires that
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the President and CEO and each member of the Management Group retains his/her ownership of shares
received under this plan until the value of his/her ownership in Vaisala corresponds to at least his/her annual
gross base salary.
On December 15, 2016, the Board of Directors resolved a share-based incentive plan 2017. On March
3, 2020 the reward corresponding to 237,900 series A shares, 65% of the maximum, was paid to 33
key employees. On June 28, 2019, the reward corresponding to 3,467 series A shares was paid to a key
employee. Closing price of Vaisala’s series A share was EUR 17.90 on the grant date of the incentive plan.
Atotal expense of this plan of EUR 4.2 million was recorded for 2017–2020.
On February 7, 2018, the Board of Directors resolved a share-based incentive plan 2018. On March
10, 2021 the reward corresponding to 166,200 series A shares, 55% of the maximum, was paid to 27 key
employees. On June 28, 2019, the reward corresponding to 923 series A shares was paid to a key employee.
On March 10, 2021, the reward corresponding to 8,000 series A shares was paid to Kai Öistämö, President
and CEO. Closing price of Vaisala’s series A share was EUR 22.10 on the grant date of the incentive plan.
Atotal expense of this plan of EUR 3.8 million was recorded for 2018–2021.
On February 12, 2019, the Board of Directors resolved a share-based incentive plan 2019–2021 for
approximately 45 key employees. The reward will be paid in spring 2022. The maximum amount of this plan
originally corresponded to 330,000 series A shares. The expenses of this plan are accrued from April 2019
to March 2022. Closing price of Vaisala’s series A share was EUR 19.06 on the grant date of the incentive
plan. On March 10, 2021, the reward corresponding to 23,040 series A shares was paid to former President
and CEO, Kjell Forsén.
On February 12, 2020, the Board of Directors resolved for a share-based incentive plan 2020–2022 for
approximately 45 key employees. The reward will be paid in spring 2023. The maximum amount of this plan
originally corresponded to 240,000 series A shares. The expenses of this plan are accrued from May 2020
to March 2023. Closing price of Vaisala’s series A share was EUR 28.65 on the grant date of the incentive
plan. On March 10, 2021, the reward corresponding to 5,529 series A shares was paid to former President
and CEO, Kjell Forsén.
On December 17, 2020, the Board of Directors resolved for a share-based incentive plan 2021–2023 for
approximately 40 key employees. The reward will be paid in spring 2024. The maximum amount of this plan
originally corresponded to 180,000 series A shares. The expenses of this plan are accrued from April 2021 to
March 2024. Closing price of Vaisala’s series A share was EUR 32.10 on the grant date of the incentive plan.
8. RESEARCH AND DEVELOPMENT EXPENDITURE
Accounting principles
Research and development expenditure is recognized as costs in the financial year in which they incur,
except for machinery and equipment acquired for research and development purposes, which are
capitalized and depreciated on a straight-line basis.
According to IAS 38, an intangible asset is recognized in the statement of financial position only when
it is probable that the expected future economic benefits will flow to the entity. Vaisala does not capitalize
costs related to the development of new products and processes as their future returns will not be realized
until the products enter the market. According to IAS 38 no intangible asset arising from research shall
be recognized and if an entity cannot distinguish the research phase from the development phase of an
internal project, the entity treats the expenditure as if it were incurred in research phase only. It is typical
for the industry, in which Vaisala operates, that it is not possible to distinguish the research phase of an
internal project that aims to create an asset from its development phase.
The statement of income includes research and development costs of EUR 55.3 (53.2) million in 2021.
9. FINANCIAL INCOME AND EXPENSES
Accounting principles
Exchange rate dierences resulting from settlement of monetary items or from presentation of items in
the financial statements at dierent exchange rates from which they were originally recognized during the
financial period or presented in the previous financial statements, are recognized as financial income or
expenses in the financial period in which they arise.
All derivative financial contracts are initially recognized at cost and subsequently remeasured at their
fair value. Derivative financial contracts are valued at their fair value using the market prices of derivative
financial contracts at the closing date of the financial year. Unrealized and realized gains and losses arising
from changes in the fair value are recognized in the statement of income in ’financial income and expenses’
in the period in which they arise.
Interest income and expenses related to financial assets and liabilities at amortized cost are recognized
over time. Principles related to interest expenses related to lease liabilities are presented in note 17, Leases.
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Financial income
EUR million 2021 2020
Interest and financial income 0.0 0.0
Gains arising from sale of shares - 0.1
Gains arising from changes in fair values of derivative financial contracts 1.1 2.3
Foreign exchange gains 4.0 2.5
Total 5.1 5.0
Financial expenses
EUR million 2021 2020
Interest expenses 0.6 0.6
Interest expenses on lease liabilities 0.4 0.4
Other financial expenses 0.4 0.3
Losses arising from changes in fair values of derivative financial contracts 3.5 1.3
Foreign exchange losses 2.4 5.9
Total 7.2 8.5
Financial income and expenses, net -2.1 -3.6
Foreign exchange gains and losses include gains and losses mainly from revaluation of cash and cash
equivalents, trade and other receivables, internal loans as well as trade and other payables.
10. INCOME TAXES
Accounting principles
The group tax expense includes taxes of group companies based on taxable profit for the financial year,
tax adjustments for previous years and changes in deferred taxes. Taxes are recognized in the consolidated
statement of income except when they are related with items recognized in other comprehensive income
or directly in shareholder’s equity. Current taxes are calculated on the taxable corporate income based on
the tax rates enacted or substantively enacted for each jurisdiction by the end of the financial year. Taxes
are adjusted for the taxes of previous financial periods, if applicable.
Deferred taxes are calculated for all temporary dierences between the carrying amount of an asset
or a liability and its tax base, and those are measured with enacted or substantively enacted tax rates for
each jurisdiction by the end of the financial year. Main temporary dierences arise from depreciation and
amortization, accruals for share-based incentive plans and tax losses carried forward. Other temporary
timing dierences consist mainly of provisions and accruals of operating expenses. Deferred tax assets are
recognized to the extent that it is probable that these can be utilized against future taxable profits.
Accounting principles requiring management judgment and the main uncertainty factors relating to
estimates
Defining income taxes and deferred tax assets and liabilities as well as to what extent deferred tax
assets may be recognized require management judgment. Group is subject to income taxation in several
jurisdictions, in which interpretation of tax legislation may require management judgment and uncertainty
may relate to the applied interpretations. Each uncertain tax treatment is considered separately or
together depending on which approach predicts the uncertainty the best way. All these eects of
uncertainties are reflected in the tax accounting when it is not probable that the tax authorities or appeal
courts will accept treatments. Group follows all tax legislation in its operating countries and has limited tax
exposure to transactions between group entities located in dierent jurisdictions.
Management assumptions and estimates are needed especially in recognizing deferred tax assets
related to tax losses carried forward. Key assumptions relate to the facts that recoverability periods for tax
losses carried forward will not change and enacted tax laws and rates remain unchanged in the near future.
When an entity has a history of recent losses the deferred tax asset arising from unused tax losses is
recognized only to the extent that there are sucient taxable temporary dierences or there is convincing
evidence that sucient future taxable profit will be generated. At each balance sheet date, the expected
utilization of deferred tax assets related to unused tax losses are assessed while considering the likelihood
of a) expected future taxable profits including availability of tax credits, b) identifiable causes to unused
tax losses to be unlikely recurred c) available tax planning opportunities.
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Income taxes
EUR million 2021 2020
Tax based on taxable income for the financial year 10.3 7.5
Taxes from previous financial years 0.2 -0.9
Change in deferred tax assets and liabilities -1.6 1.9
Total 8.9 8.5
Reconciliation statement between the statement of income tax item and taxes calculated at the tax rate
of the group country of domicile
EUR million 2021 2020
Result before taxes 48.3 41.4
Taxes calculated at the Finnish tax rate 9.7 8.3
Eect of foreign subsidiaries’ tax rates 2.2 1.0
Non-deductible expenses, tax-free revenue and tax incentives -0.5 -0.2
Taxes from previous financial years 0.2 -0.9
Other direct taxes 0.0 0.1
Reassessment of deferred tax assets -1.8 0.6
Other -1.0 -0.4
Total 8.9 8.5
Eective tax rate 18.4% 20.6%
Vaisala had not any carry forward tax losses for which deferred tax assets have not been recognized as of
December 31, 2021 (December 31, 2020 EUR 8.9 million).
Deferred taxes in the statement of financial position
EUR million 2021 2020
Deferred tax assets 9.2 7.3
Deferred tax liabilities -6.7 -7.7
Total 2.5 -0.4
Gross change in deferred taxes recognized in the statement of financial position
EUR million 2021 2020
Deferred taxes Jan 1 -0.4 1.7
Items recognized in the statement of income 1.7 -1.9
Eect of business combinations 0.0 0.0
Translation dierences -0.1 -0.2
Items recognized in the equity 0.0 0.0
Items recognized in the statement of comprehensive income -1.3 0.0
Deferred taxes Dec 31 2.5 -0.4
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Changes in deferred taxes during 2021
EUR million Jan 1, 2021 Reclassification
Recognized in the
statement of income
Translation
dierences
Recognized in the
statement of
comprehensive income Dec 31, 2021
Deferred tax assets
Internal margin of inventories, intangible assets and property,
plant and equipment 1.0 0.6 0.0 -0.1 0.0 1.4
Employee benefits and share-based payments 2.0 0.3 0.2 0.0 1.3 3.8
Unused tax losses 3.1 0.0 0.6 0.0 0.0 3.7
Timing dierence of amortization on intangible assets and
depreciation on property, plant and equipment 1.7 -0.9 0.0 0.0 0.0 0.7
Other temporary timing dierences 2.0 0.0 0.2 0.0 0.0 2.4
Netted against deferred tax liabilities -2.5 -0.3 -2.8
Total 7.3 0.0 0.7 -0.1 1.3 9.2
Deferred tax liabilities
Timing dierence of amortization on intangible assets and
depreciation on property, plant and equipment 9.8 0.0 -0.7 0.0 0.0 9.1
Other 0.5 0.0 0.0 0.0 0.0 0.3
Netted against deferred tax assets -2.5 -0.3 -2.8
Total 7.7 0.0 -1.0 0.0 0.0 6.7
Deferred tax assets, net -0.4 0.0 1.7 -0.1 1.3 2.5
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Changes in deferred taxes during 2020
EUR million Jan 1, 2020
Recognized in the
statement of income
Translation
dierences
Recognized in the
statement of
comprehensive income Dec 31, 2020
Deferred tax assets
Internal margin of inventories, intangible assets and property,
plant and equipment 0.8 0.2 0.0 1.0
Employee benefits and share-based payments 2.0 0.0 0.0 -0.0 2.0
Unused tax losses 4.0 -0.8 -0.1 3.1
Timing dierence of amortization on intangible assets and depreciation
on property, plant and equipment 2.3 -0.6 1.7
Other temporary timing dierences 3.4 -1.0 -0.2 2.0
Netted against deferred tax liabilities -2.7 0.2 -2.5
Total 9.8 -2.1 -0.4 -0.0 7.3
Deferred tax liabilities
Timing dierence of amortization on intangible assets and depreciation
on property, plant and equipment 10.4 -0.4 -0.2 9.8
Other 0.4 0.1 0.0 0.5
Netted against deferred tax assets -2.7 0.2 -2.6
Total 8.1 -0.1 -0.2 7.7
Deferred tax assets, net 1.7 -1.9 -0.2 -0.0 -0.4
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11. EARNINGS PER SHARE
Accounting principles
Earnings per share is calculated by dividing the result for the period attributable to the parent company’s
shareholders by weighted average number of issued shares during the financial year. Diluted earnings per
share is calculated by adjusting the weighted average number of shares outstanding during the financial
year with the diluted eect of potential shares from the share-based payments.
Earnings per share
2021 2020
Result attributable to the shareholders of the parent company, EUR million 39.0 32.8
Weighted average number of shares outstanding, 1,000 pcs 36,082 35,979
Eect of share-based incentive plans, 1,000 pcs 272 243
Weighted average diluted number of shares, 1,000 pcs 36,354 36,223
Earnings per share, EUR 1.08 0.91
Diluted earnings per share, EUR 1.07 0.91
Net working capital
12. TRADE RECEIVABLES AND OTHER RECEIVABLES
Accounting principles related to trade receivables and other receivables are presented in Note 21, Financial
assets and liabilities.
Trade receivables and other receivables
EUR million 2021 2020
Trade receivables*
)
59.2 52.2
Advances paid 1.6 0.7
Value-added tax receivables 4.3 3.4
Other receivables 2.2 1.1
Derivative financial contracts 0.0 1.2
Other prepaid expenses and accrued income 6.2 5.4
Total 73.5 64.0
*
)
In 2021, trade receivables included EUR 0.1 million lease receivables.
The fair value of trade and other receivables is, in all material respects, equivalent to their carrying amounts.
Expected credit losses of trade receivables
Dec 31, 2021
Trade receivables,
gross amount
Credit loss
allowance
Trade receivables,
net amount
Current 40.9 0.1 40.7
Due less than 90 days 10.8 0.0 10.8
Due 91-180 days 1.2 0.2 1.0
Due over 180 days 1.2 0.8 0.3
Credit loss allowance other than those based on
age analysis 6.6 0.3 6.4
Total 60.7 1.5 59.2
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Expected credit losses of trade receivables
Dec 31, 2020
Trade receivables,
gross amount
Credit loss
allowance
Trade receivables,
net amount
Current 34.5 0.1 34.3
Due less than 90 days 11.8 0.0 11.7
Due 91-180 days 0.8 0.1 0.7
Due over 180 days 1.0 0.4 0.6
Credit loss allowance other than those
based on age analysis 5.9 1.0 4.8
Total 53.9 1.7 52.2
Reconciliation of credit loss allowance of trade receivables
EUR million 2021 2020
Opening balance for credit loss allowance on Jan 1 1.7 2.0
Change in credit loss allowance recognized in profit or loss
during the financial year 0.1 0.2
Receivables recognized as final credit losses
during the financial year due to uncollectability -0.3 -0.5
Exchange rate dierences 0.1 -0.1
Total 1.5 1.7
Credit losses and related reversals arising from trade receivables recognized for the financial year
amounted to EUR -0.1 (-0.3) million.
Trade receivables by currency
EUR million 2021 2020
EUR 28.1 23.5
USD 17.1 17.4
GBP 3.1 2.6
JPY 4.1 4.7
AUD 0.9 0.8
CNY 2.8 1.7
CAD 1.5 1.0
SGD 0.7 -
Others 0.9 0.5
Total 59.2 52.2
13. INVENTORIES
Accounting principles
Inventories are stated at the lower of standard cost or net realizable value. Inventory cost includes the cost
of purchase (including mainly purchase price, import duties and transport), direct labor and a proportion
of production overhead. An allowance is recognized for excess inventory and obsolescence.
Accounting principles requiring management judgment and the main uncertainty factors relating to
estimates
Allowance for inventory is recognized for possible excess, obsolescence and decrease in net realizable
value below inventory cost. Estimates and judgment are required in determining the value of the allowance
for excess and obsolete inventory. Management analyses estimates of demand and determines allowance
for excess and obsolete inventory. Possible changes in the assumptions may cause revaluation of inventory
valuation in the future periods.
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Inventories
EUR million 2021 2020
Materials, supplies and finished goods 49.9 44.5
Total 49.9 44.5
At the beginning of financial year 2021 Vaisala amended its accounting principles related to leases from
lessor's perspective to include accounting by a lessor. Consequently, the leased assets, EUR 1.2 million,
were transferred from inventory to property, plant and equipment.
The cost of inventories recognized in the statement of income as an expense corresponding to net sales
was EUR 126.6 (108.2) million.
Write-os and excess and obsolescence allowances for slow moving and obsolete inventory recognized
during the financial year amounted to EUR 1.6 (1.2) million.
14. TRADE PAYABLES AND OTHER LIABILITIES
Accounting principles
Due to the short maturity of trade payables and other liabilities the carrying amount is considered to be
the fair value. Trade and other payables are classified as current liabilities if they are due within 12 months
from the balance sheet date or are to be settled within the normal operating business cycle. Accounting
principles for derivative financial contracts are presented in note 21, Financial assets and liabilities.
Trade payables and other liabilities
EUR million 2021 2020
Trade payables 21.4 13.8
Personnel cost accruals 38.1 27.0
Derivative financial contracts 1.3 0.1
Other accrued expenses and deferred income 7.4 5.0
Other current liabilities 15.6 6.4
Total 83.9 52.3
Trade payables arise from ordinary course of business, and they relate to purchases of inventories,
intangible and tangible assets and other goods and services. Personnel cost accruals are mainly related to
bonuses and unused vacations.
15. PROVISIONS
Accounting principles
A provision is recognized when group has a legal or constructive obligation as a result of a prior event, it
is probable that an outflow of resources will be required to settle the obligation, and a reliable estimate of
the amount can be made. The amount recognized as a provision is the best estimate of the expenditure
required to settle the present obligation at the end of reporting period. If the eect of the time value of
money is material, the amount of provision is the present value of the expenditure expected to be required
to settle the obligation. The discount factor used in calculating the present value is selected so that it
reflects the market view of the time value of money and the risks related to the obligations at the time of
examination.
Where some or all of the expenditure required to settle a provision is expected to be reimbursed by
a third party, the reimbursement is recognized as a separate asset but only when the reimbursement is
virtually certain. The amount of provisions is reviewed at end of each reporting period and the amount
is adjusted to reflect the current best estimate. A provision is reversed when the probability of financial
settlement has been removed. A change in provision is recognized in the same item of the statement of
income in which the provision was originally recognized.
Provisions can relate to restructuring of operations, loss-making contracts, warranties, legal disputes
and other commitments.
A restructuring provision is recognized when a detailed and appropriate plan for restructuring has been
prepared and the company has started to implement the plan or has announced it to those aected by it.
Restructuring provisions include mainly lease termination penalties and redundancy payments.
A provision for a loss-making contract is recognized when unavoidable costs of meeting the obligation
exceed the economic benefits expected to be received from the contract.
A warranty provision covers the cost of repairing or replacing the products. The warranty provision is
based on past experience and an estimate of future costs.
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Non-current provisions
EUR million 2021 2020
Provisions Jan 1 0.1 0.1
Increase in provisions 0.2 0.0
Provisions Dec 31 0.3 0.1
Current provisions
EUR million 2021 2020
Provisions Jan 1 1.7 3.2
Increase in provisions 0.3 0.1
Used provisions -0.1 -1.5
Provisions Dec 31 2.0 1.7
In 2021 provisions related to warranties and other contractual commitments. In 2020 provisions related to
warranties, restructuring, loss-making contracts and other contractual commitments.
Intangible and tangible assets
16. INTANGIBLE AND TANGIBLE ASSETS
Accounting principles
Goodwill
Goodwill represents the excess of the consideration transferred of an acquisition over the fair value of the
group’s share of the net assets of the acquired entity at the date of acquisition. Goodwill is calculated in
the currency of the operating environment of the acquired entity. If the consideration transferred is lower
than the net asset value of the acquired entity, the dierence is recognized in the statement of income.
Goodwill is not amortized but tested annually for possible impairment and whenever there is an indication
that the value may be impaired. For this purpose, goodwill has been allocated to cash-generating units.
Vaisala’s total goodwill is allocated to the cash-generating unit formed by the Weather and Environment
Business Area. Goodwill is valued at acquisition cost less impairment losses. Impairment losses are
recognized in the statement of income.
Technology-based and customer related intangible assets
Intangible assets identified in connection with acquisitions are measured at the fair value at the acquisition
date. In business combinations consideration transferred has been allocated to technology-based and
customer related intangible assets. Initial measurement of technology-based and customer related
intangible assets has been prepared by applying income and cost approach method. Intangible assets
identified in connection with acquisitions are amortized over their delivery times or estimated useful
lifetimes.
Other intangible assets
Other intangible assets include mainly patents, trademarks and licenses. Other intangible assets are
recognized initially at acquisition cost and amortized using the straight-line method over their useful
lifetime. Intangible assets that have an indefinite useful lifetime are not amortized, but are tested annually
for impairment. The carrying amount of these intangible assets is not material.
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Estimated useful lifetimes for intangible assets are:
Technology-based intangible assets 7–8 years
Customer related intangible assets 1–5 years
Intangible rights 3–20 years
Software licenses 3–5 years
Other intangible assets 3–5 years
Property, plant and equipment
Property, plant and equipment comprise mainly land and buildings as well as machinery and equipment.
The carrying amount of assets is based on original acquisition cost less accumulated depreciation as well
as possible impairment losses. The cost of self-constructed assets includes materials and direct labor as
well as a proportion of overhead costs attributable to construction labor. If a tangible asset consists of
several parts which have dierent useful lifetimes, these parts are treated as separate assets. Accordingly,
expenses relating to the renewal of a part are capitalized and the remaining part is recognized as an
expense. Otherwise, expenditures that incur later are included in the carrying amount of the tangible
assets only if it is probable that the future economic benefit connected with the asset is for the benefit of
group and that the acquisition cost can be reliably determined. Other repair and maintenance expenses are
recognized in the statement of income when realized.
Depreciation is calculated using the straight-line method and is based on the estimated useful lifetime
of the asset. Land is not depreciated. Estimated useful lifetimes for assets are:
Buildings and structures 5–40 years
Machinery and equipment 3–8 years
Other tangible assets 3–8 years
The estimated useful lifetime of leased assets is three years. However, the assets are not depreciated as the
residual value of the assets exceeds the carrying value.
The residual values, depreciation methods and useful lifetimes of the assets are reviewed, and adjusted
if necessary, in connection with each financial statement to reflect changes in the expectations of future
economic benefit. Gains and losses on disposals are determined by comparing the disposal proceeds with
the carrying amount of the asset and are included in the operating result.
Public grants received for investments are recognized as a reduction in the carrying amounts of tangible
assets. Thus, grants are recognized in the form of lower depreciation over the useful lifetime of the asset.
Impairment
In the end of each reporting period, the group reviews assets for any indication of impairment. The need
for impairment is reviewed at cash-generating unit level, i.e. at the lowest level of units which is mainly
independent of other units and whose cash flows are separate and highly independent from the cash flows
of other corresponding units. If there is an indication of impairment, the recoverable amount of the asset
is assessed. Additionally, the recoverable amount is assessed annually for the following assets irrespective
of whether there is indication of impairment: goodwill, intangible assets which have an indefinite useful
lifetime, as well as incomplete intangible assets.
The recoverable amount is the higher of the asset’s fair value less the cost arising from disposal and its
value in use. In determining value in use, the estimated future cash flows are discounted to their present
value using discount rates that reflect the average pre-tax cost of capital for the respective country and
industry (WACC = weighted average cost of capital). The special risks associated with these assets are
also taken into account in the discount rates. For an individual asset that does not independently generate
future cash flows, the recoverable amount is determined for the cash-generating unit to which the asset
belongs.
An impairment loss is recognized as an expense when the carrying amount of the asset is greater than
its recoverable amount. An impairment loss is reversed if there has been a change in the circumstances
that led to the estimates and the recoverable amount of the asset has changed since the impairment loss
was recognized. An impairment loss is not reversed more than the carrying amount of the asset (less
depreciation) without an impairment loss recognized. Impairment losses recognized for goodwill are not
reversed under any circumstances.
Accounting principles requiring management judgment and the main uncertainty factors relating to
estimates
In business combinations, IFRS 3 requires the acquirer to recognize an intangible asset separately from
goodwill, if the recognition criteria are met. Recognition of an intangible asset at fair value requires
management estimates of future cash flows. To the extent possible, management has used available
market values as the basis for allocating costs to determine fair values. When this is not possible, which
is typical especially for intangible assets, valuation is mainly based on the expectations on returns
of the asset and its intended use in the business. Valuations are based on discounted cash flows and
require management’s estimates and assumptions about the future use of the assets and their eect
on the financial position of the company. Changes in the focus and direction of the company’s business
operations may, in the future, result in changes in the original valuation. Group tests goodwill annually for
impairment and assesses indications of impairment of property, plant and equipment and intangible assets
as described above. The recoverable amounts of cash-generating units are determined using value in use
calculations. Although management believes that the assumptions used are appropriate, the estimated
recoverable amounts might dier materially from those realized in the future.
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Intangible assets
EUR million Goodwill
Technology-based
intangible assets
Customer related
intangible assets
Other
intangible assets
Advance payments and
construction in progress Total
Acquisition cost Jan 1, 2021 28.5 39.1 14.1 31.7 0.4 113.8
Translation dierence 1.2 0.0 0.5 0.0 1.7
Increases 0.2 0.1 0.3
Decreases -0.0 -0.2 -0.2
Transfers between items 0.2 -0.2 0.0
Acquisition cost Dec 31, 2021 29.6 39.1 14.1 32.4 0.3 115.6
Accumulated amortization and impairment Jan 1, 2021 12.1 8.2 30.0 50.2
Translation dierence 0.0 0.5 0.5
Accumulated amortization of decreases and transfers -0.0 -0.2 -0.2
Amortization for the financial year 5.5 1.9 0.8 8.2
Impairment for the financial year 0.0 0.0
Accumulated amortization and impairment Dec 31, 2021 17.5 10.1 31.0 58.7
Carrying amount Dec 31, 2021 29.6 21.6 4.0 1.4 0.3 56.9
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Intangible assets
EUR million Goodwill
Technology-based
intangible assets
Customer related
intangible assets
Other
intangible assets
Advance payments and
construction in progress Total
Acquisition cost Jan 1, 2020 29.8 39.1 14.1 32.9 0.4 116.3
Translation dierence -1.3 0.0 -0.6 0.0 -1.9
Increases 0.2 0.1 0.4
Decreases -0.0 -0.9 -0.9
Transfers between items 0.1 -0.1 0.0
Acquisition cost Dec 31, 2020 28.5 39.1 14.1 31.7 0.4 113.8
Accumulated amortization and impairment Jan 1, 2020 6.7 6.3 30.5 43.6
Translation dierence 0.0 -0.6 -0.6
Accumulated amortization of decreases and transfers -0.0 -0.9 -0.9
Amortization for the financial year 5.3 1.9 0.9 8.1
Impairment for the financial year 0.0 0.0
Accumulated amortization and impairment Dec 31, 2020 12.1 8.2 30.0 50.2
Carrying amount Dec 31, 2020 28.5 27.0 5.9 1.7 0.4 63.6
Impairment testing
Vaisala assesses the value of goodwill, intangible assets which have an indefinite useful lifetime, as well as
incomplete intangible assets for impairment annually and whenever there is an indication that the unit may
be impaired. The recoverable amount of the cash-generating unit is based on value in use calculations and
cash flows are based on three year forecasts approved by Vaisala management. Vaisala’s total goodwill is
allocated to the cash-generating unit formed by Weather and Environment Business Area.
In Weather and Environment Business Area cash-generating unit the recoverable amount exceeds the
carrying amount by EUR 482 million. Weather and Environment Business Area sales are expected to grow
in average 3.5% next three years. Terminal growth rate is 2% and Weighted Average Cost of Capital is 7.15%.
Key assumptions in impairment testing are net sales, profitability and discount rate. Vaisala’s management
has estimated it to be unlikely that any expected change in key assumptions would lead to carrying
amount of the cash-generating unit exceeding the recoverable amount.
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Property, plant and equipment
EUR million Land and waters
Buildings and
structures
Machinery and
equipment Leased assets*
)
Other tangible assets
Advance payments and
construction in progress Total
Acquisition cost Jan 1, 2021 4.5 92.9 74.9 0.1 8.0 180.4
Translation dierence 0.1 1.5 1.2 0.0 2.9
Increases 4.3 6.4 1.0 7.0 18.7
Decreases -0.4 -3.9 -0.5 -4.8
Transfers between items 0.7 5.1 1.2 -5.7 1.2
Acquisition cost Dec 31, 2021 4.7 99.1 83.6 1.7 0.1 9.3 198.3
Accumulated depreciation and impairment Jan 1, 2021 42.5 53.9 96.4
Translation dierence 0.4 1.0 1.4
Accumulated depreciation of decreases and transfers -0.4 -3.9 -0.0 -4.3
Depreciation for the financial year 3.9 6.6 10.5
Impairment for the financial year 0.1 0.1 0.2
Accumulated depreciation and impairment Dec 31, 2021 46.5 57.7 0.1 0.0 0.0 104.2
Carrying amount Dec 31, 2021 4.7 52.6 25.9 1.6 0.1 9.3 94.1
*
)
In the beginning of financial year 2021 Vaisala amended the accounting principles related to leases from lessor's perspective to include accounting by a lessor. Consequently, the leased assets, EUR 1.2 million, were transferred from inventory to property, plant and equipment.
On December 31, 2021, the carrying amount of machinery and equipment used in production was EUR 17.1 (13.3) million.
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Property, plant and equipment
EUR million Land and waters
Buildings
and structures
Machinery
and equipment Other tangible assets
Advance payments and
construction in progress Total
Acquisition cost Jan 1, 2020 4.7 57. 5 79.5 0.1 23.7 165.4
Translation dierence -0.2 -0.5 -1.3 -0.5 -2.6
Increases 21.5 4.1 5.0 30.6
Decreases -0.8 -12.2 -13.1
Transfers between items 15.2 4.9 -20.2 -0.1
Acquisition cost Dec 31, 2020 4.5 92.9 74.9 0.1 8.0 180.4
Accumulated depreciation and impairment Jan 1, 2020 40.8 61.2 102.0
Translation dierence -0.4 -1.2 -1.6
Accumulated depreciation of decreases and transfers -0.8 -12.2 -13.0
Depreciation for the financial year 3.0 6.0 9.0
Impairments for the financial year 0.1 0.1 0.1
Accumulated depreciation and impairment Dec 31, 2020 42.5 53.9 96.4
Carrying amount Dec 31, 2020 4.5 50.4 21.0 0.1 8.0 83.9
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Depreciation, amortization and impairment by function
EUR million 2021 2020
Procurement and production 4.0 3.8
Sales, marketing and administration 1.2 12.4
Research and development 13.7 1.1
Total 18.9 17.3
Depreciation, amortization and impairment by asset group 2021
EUR million
Depreciation and
amortization Impairment Total
Technology-based intangible assets 5.5 5.5
Customer related intangible assets 1.9 1.9
Other intangible assets 0.8 0.0 0.8
Buildings and structures 3.9 3.9
Machinery and equipment 6.6 0.1 6.7
Leased assets 0.1 0.1
Total 18.7 0.2 18.9
Depreciation, amortization and impairment by asset group 2020
EUR million
Depreciation and
amortization Impairment Total
Technology-based intangible assets 5.3 5.3
Customer related intangible assets 1.9 1.9
Other intangible assets 0.9 0.0 0.9
Buildings and structures 3.0 0.1 3.0
Machinery and equipment 6.0 0.1 6.1
Total 17.1 0.2 17.3
17. LEASES
Leases as lessee
Accounting principles
Vaisala acts as a lessee and its lease contracts consist mainly of oces, other premises, land area,
apartments and cars.
Majority of Vaisala’s lease contracts are fixed-term arrangements without one-sided extension or
termination options and thus the lease term is defined based on the duration of the contract. If an
arrangement includes extension, termination or purchase option management estimates the probable
lease term for each arrangement based on an understanding of the business needs.
A contract may include both a lease component and other components (such as a service fee), for
which the contract consideration is allocated on the basis of relative separate prices. Other components
are excluded from IFRS 16 calculation, except for service fees for car leases, which are included in the lease
component.
For leases, right-of-use asset and corresponding lease liability are recognized in the statement of
financial position.
The cost of initial measurement of the right-of-use asset comprises the following items:
• the amount of the initial measurement of the lease liability;
• any lease payments made at or before the commencement date, less any lease incentives received
(such as rent-free period);
• any initial direct costs incurred by the lessee; and
• the potential costs of restoring the underlying asset
Right-of-use assets are tested for impairment as described in Note 16, Intangible and tangible assets.
Subsequently right-of-use asset is measured at cost less accumulated depreciation and impairment
losses, adjusted for any remeasurement of the lease liability.
The lease liability is initially measured at the present value of the future lease payments discounted by
incremental borrowing rate. Incremental borrowing rate is the rate of interest that Vaisala would have to
pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of
a similar value to the right-of-use asset in a similar economic environment. Subsequently, in valuation of
lease liability eective interest rate method is applied, according to which lease liability is recognized at
amortized cost and interest expense is accrued over the lease term.
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Lease liabilities include the net fair value of the following payments:
• fixed payments (including in-substance fixed payments), less any lease incentives receivable;
• variable lease payments that depend on an index or a rate, initially measured using the index or rate as
at the commencement date;
• amounts expected to be payable by the lessee under residual value guarantees;
• the exercise price of a purchase option if the lessee is reasonably certain to exercise that option; and
• payments of penalties for terminating the lease, if the lease term reflects the lessee exercising an
option to terminate the lease.
Leases based on extension options that are reasonably certain to be exercised are also included in the
liability.
Subsequently, the amount of lease liability is aected by, among other things, the interest accrued by
the lease liability, the leases paid, the index increases in leases and the eects of changes in contract.
Depreciation and impairments of right-of-use assets, interest on lease liabilities and items arising from
contractual changes are recognized in the consolidated statement of income.
Accounting principles requiring management judgment and the main uncertainty factors relating to
estimates
The application of IFRS 16 in the situations, in which Vaisala acts as a lessee, requires management to
consider the duration of the lease term if there is an option for extension, termination or purchase. When
evaluating the likelihood of the option being exercised and, therefore, the duration of the lease term,
management takes into account all known facts and circumstances that create a financial incentive to
exercise, or not to exercise, the option on a contractual basis.
Management’s estimates of the business needs and hence the likelihood of the exercise of various
options are based on known short- and long-term strategies and action plans and on the possible
reorganization plans and investment decisions based on them. When evaluating the likelihood of the
exercise of options, the decision is also influenced by, among other things, the purpose of the use of the
premises and the extent of the investments made.
Amounts recognized in the statement of financial position related to leases
Carrying amounts of right-of-use assets
EUR million 2021 2020
Land and waters 1.3 1.3
Buildings and structures 9.2 10.7
Machinery and equipment 0.6 0.6
Total 11.1 12.5
Additions to the right-of-use assets during the financial year 2021 were EUR 1.1 (4.4) million.
Interest-bearing lease liabilities
EUR million 2021 2020
Non-current 7.7 9.2
Current 2.4 2.7
Total
10.1
11.9
Maturity of lease liabilities is presented in note 21, Financial assets and liabilities.
Amounts recognized in the statement of income related to leases
Depreciation of right-of-use assets
EUR million 2021 2020
Buildings and structures 2.4 2.9
Machinery and equipment 0.4 0.4
Total
2.8
3.3
Write-downs of right-of-use assets
EUR million 2021 2020
Buildings and structures -0.0 0.5
Total
-0.0
0.5
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Capital structure
18. SHAREHOLDERS’ EQUITY
Accounting principles
The group’s equity consists of share capital, reserve fund, fund of invested non-restricted equity, translation
dierences and retained earnings.
Shares issued by the parent company are presented as share capital. Expenses related to the share
issues or acquisition of own shares are presented as a reduction of equity. If the company acquires back its
own shares, the consideration paid including direct costs is deducted from the equity.
The Board of Directors’ proposal for dividend distribution is not recognized in the financial statements.
The dividends are recognized only after the Annual General Meetings’ approval.
Shares and share capital
On July 21, 2020 Vaisala Corporation’s Board of Directors decided to convert 20,306 K shares to series
A shares. This conversion was registered into the Trade Register on July 31, 2020. After this Vaisala
Corporation has 36,436,728 shares, of which 6,731,092 are series K shares and 29,705,636 series A shares.
The shares do not have nominal value. The series K shares and A shares are dierentiated by the fact that
each series K share entitles its owner to twenty (20) votes at General Meeting of Shareholders while each
series A share entitles its owner to one (1) vote. The shares have the same rights to dividend. Series K
shares can be converted to series A shares according to specific rules stated in the Articles of Association.
On December 31, 2021 and 2020, the fully paid and registered share capital of Vaisala Corporation
amounted to EUR 7,660,807.86.
Other items recognized in the statement of income
EUR million 2021 2020
Interest expense on lease liabilities 0.4 0.4
The total cash outflow for leases in 2021 was EUR 3.4 (3.7) million.
Leases as lessor
In the beginning of financial year 2021 Vaisala amended its accounting principles to include accounting
principles related to leases as a lessor due to the increase of lease arrangements, in which Vaisala acts as a
lessor. Due to the change an amount totaling EUR 1.2 million were transferred from inventory to property,
plant and equipment. The comparative information has not been restated due to the immateriality of the
transactions and balances during the comparison period.
Accounting principles
In Vaisala, all lease agreements, in which Vaisala acts as a lessor, are classified as operating leases as the
risks and rewards incidental to ownership of the underlying assets are not substantially transferred to
the lessee. The lease payments are recognized on straight-line basis as lease income. Lease income is
presented as part of net sales. Vaisala recognizes costs incurred in earning the lease income as an expense
in the cost of goods sold.
The lease term is determined as the non-cancellable period of a lease, together with both periods
covered by an option to extend the lease if the lessee is reasonably certain to exercise that option and
periods covered by an option to terminate the lease if the lessee is reasonably certain not to exercise that
option.
Leased assets are included in property plant and equipment. The estimated useful lifetime of the assets
is three years. However, the assets are not depreciated as the residual value of the assets is greater than
the carrying value, but the assets are tested for impairment in accordance with IAS 36 Impairment of
assets.
Vaisala as lessor
Vaisala leases wind lidars for wind measurements. The lease terms are usually short-term, but maximum
two years.
Lease income recognized in financial year 2021 was EUR 2.1 million.
At the end of the financial year 2021 the undiscounted lease payments to be received were EUR 0.4
million and Vaisala estimates that those will be received during the financial year 2022.
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Shareholders’ equity
EUR million
Number of
shares 1,000 Share capital Other reserves
Treasury
shares Total
Dec 31, 2019 35,881 7.7 7.0 -7. 9 6.8
Share-based
payments 119 -1.4 1.6 0.2
Transfers between
items 0.0 0.0
Translation dierence -0.0 -0.0
Dec 31, 2020 36,000 7.7 5.6 -6.3 7.0
Share-based
payments 101 1.3 1.7 2.9
Transfers between
items 0.0 0.0
Translation
dierences 0.0 0.0
Dec 31, 2021 36,101 7.7 7.0 -4.6 10.0
Own shares held by
the company 336
Total 36,437
Other reserves
Other reserves consist of reserve fund and invested non-restricted equity. Share-based payments are also
recognized in other reserves. The reserve fund, EUR 0.5 (0.5) million, includes items based on local rules of
subsidiaries. Eligibility of the reserve fund is subject to restrictions based on local regulations.
Invested non-restricted equity includes funds transferred from the share premium fund. On December
31, 2021 the amount of other reserves totaled to EUR 0.1 (0.1) million.
Own shares
Own shares (treasury shares) include the acquisition cost of own shares held by the group and are
presented as a deduction from retained earnings.
Number of
shares
Purchase price
EUR million
Treasury shares Dec 31, 2019 555,989 7.9
Distribution of treasury shares to key employees -118,950 -1.6
Treasury shares Dec 31, 2020 437,039 6.3
Distribution of treasury shares to key employees -101,384 -1.7
Treasury shares Dec 31, 2021 335,655 4.6
On December 31, 2021 the company held 335,655 (437,039) series A shares representing 0.9% (1.2) of the
total number of shares and 0.2% (0.3) of the voting rights. The consideration paid for the shares held by
the company was EUR 4.6 million.
Treasury shares can be used as consideration in possible acquisitions or in other business-related
arrangements, to finance investments, as part of the company’s incentive program, or be retained,
conveyed, or cancelled by the company.
Translation dierences
Translation dierences include the translation dierences arising from the elimination of the acquisition
cost of non-euro area group companies and from post-acquisition equity items, and the translation
dierences arising from translation of profit or loss for the period. The group has not hedged any equity
denominated in foreign currency.
The result for the financial year is recognized in retained earnings.
Dividend
For the financial year 2020 a dividend of EUR 0.61 per share was paid, totaling EUR 22.0 million.
The Board of Directors proposes to the Annual General Meeting to be held on March 29, 2022 that
a dividend of EUR 0.68 per share be paid for the financial year 2021, representing a total dividend of
approximately EUR 24.5 million. The proposed dividend has not been recognized as a dividend liability in
these financial statements.
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19. FINANCIAL RISK MANAGEMENT
Vaisala is exposed to a number of financial risks in its operations of which key ones are currency risk,
interest rate risk, refinancing and liquidity risks as well as financial counterparty risk and trade receivables
credit risks. Vaisala’s objective is to limit the impact of these risks on statement of income, statement of
financial position and cash flow statement. The management of financial risks is based on the treasury and
credit policies approved by the Board of Directors.
Currency risk
Currency risk refers to the uncertainty in statement of income, statement of financial position and cash
flow statement arising from exchange rate fluctuations. Vaisala’s business is global and is exposed to
transaction and translation risks in multiple currencies. The transaction risk is related to the currency flows
of sales and expenses. The translation risk arises from net investments in entities outside the euro area.
Vaisala’s sales are denominated in various currencies. In 2021, 46% of the group’s sales was in EUR,
31% in USD, 9% in CNY, 5% in JPY and 4% in GBP. Expenses and purchases occur mostly in EUR and USD.
The group’s policy is to hedge foreign currency positions which consists of the order book, purchase
commitments, net receivables, cash and cash equivalents and intercompany loans. Vaisala does not
hedge forecasted cash flows that are not in the order book. Vaisala does not apply hedge accounting in
accordance with IFRS and changes in fair value are recognized in the statement of income.
Intercompany loans and deposits are mainly initiated in subsidiaries’ local currencies. Vaisala does not
hedge equities of subsidiaries. Translation of subsidiaries’ equities into euros caused translation dierence
of EUR 4.5 (-4.0) million. The most significant translation risk exposures are in USD.
The IFRS 7 currency risk sensitivity analysis is based on the group companies’ foreign currency
receivables, cash and cash equivalents and liabilities. The calculation does not include internal loans, order
book or forecasted cash flows, but includes foreign exchange forward contracts in their nominal value. The
eect of a 10% appreciation in all open net currency positions on Vaisala’s result after taxes and equity
would have been EUR -0.4 (-0.1) million. Three largest foreign exchange net exposures in euro and their
sensitivity analysis based on a 10% change (before taxes) are presented in the following table:
Foreign exchange net exposures against EUR
EUR million
2021 2020
Net position Sensitivity EUR million Net position Sensitivity
USD -8.3 +/- 0.8 HRK -3.0 +/- 0.3
PLN -3.1 +/- 0.3 USD -2.7 +/- 0.2
HRK -3.0 +/- 0.3 SEK -2.3 +/- 0.2
Interest rate risk
Interest rate risk refers to the uncertainty in statement of income, statement of financial position and cash
flow statement arising from interest rate changes. The group is exposed to cash flow interest rate risk, if
it has floating rate liabilities. At the end of the financial year 2021 Vaisala’s interest-bearing liabilities and
loans were at floating rates and totaled EUR 50.2 (57.0) million. EUR 10.1 (11.9) million of interest-bearing
liabilities and loans related to lease liabilities.
Refinancing and liquidity risks
Refinancing and liquidity risk refers to the uncertainty in the ability to maintain liquidity. In order to ensure
liquidity, cash and cash equivalents and availability of credit facilities are maintained at a sucient level.
On December 31, 2021 Vaisala’s cash and cash equivalents amounted to EUR 77.9 (45.4) million. Vaisala
has a EUR 40.0 million unsecured term loan which was signed on May 25, 2020. The loan matures in
three years from the signing date and has a financial covenant (gearing), which is tested semi-annually.
On December 31, 2021, Vaisala was in compliance with the covenant. This facility is used for refinancing of
existing indebtedness as well as for general corporate and working capital purposes.
In addition, Vaisala has a EUR 50 million unsecured revolving credit facility which was signed on
October 5, 2018. The committed credit facility agreement matures in 5 years from the signing date and it
has no financial covenants. On December 31, 2021, Vaisala had interest bearing liabilities totaling EUR 50.2
(57.0) million. Group has no loans that would mature after five years or more. In addition, Vaisala has a
domestic commercial paper program amounting to EUR 150 million that was not utilized as of December
31, 2021.
Financial counterparty risk
Financial counterparty risk refers to the uncertainty about the counterparty’s ability to assume the
obligations related to the financing. Vaisala is exposed to financial counterparty risk in respect of cash and
cash equivalents and derivative financial instruments. Vaisala’s cash and cash equivalents amounted to
EUR 77.9 (45.4) million and the nominal value of derivative financial instruments to EUR 35.2 (31.4) million.
Vaisala deposits its assets and concludes derivative financial contracts with counterparties with good
creditworthiness and approved according to Vaisala’s treasury policy. The creditworthiness of banks is
constantly assessed.
Trade receivables credit risk
Trade receivables credit risk means the customer-related uncertainty about the collectability of receivables.
These trade receivables credit risks are managed by using letter of credit, advance payments and bank
guarantees as payment terms. Additionally, trade receivables credit risk is managed by utilizing credit
risk insurance and by monitoring customer liquidity. Management estimates that the group does not have
significant credit risk concentrations. No single customer or a group of customers constitutes a significant
risk due to globally distributed customer base. During the financial year, credit losses and related reversals
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for trade receivables recognized in the statement of income amounted to EUR -0.1 (-0.3) million. Credit
loss is recognized once it has been ocially declared that the receivable will not be paid as a result of
liquidation or bankruptcy.
20. NON-CURRENT RECEIVABLES
EUR million
2021 carrying
amounts Fair values
2020 carrying
amounts Fair values
Non-current deposits 0.7 0.7 0.7 0.7
Other non-current receivables 0.1 0.1 0.2 0.2
Total 0.9 0.9 0.9 0.9
21. FINANCIAL ASSETS AND LIABILITIES
Accounting principles
Financial assets
Financial assets are classified into following categories: at amortized cost and at fair value through profit
and loss. Financial assets are measured on the basis of the entity’s business model for managing the
financial assets and the contractual cash flow characteristics of the financial assets or by applying fair
value option in connection with the original acquisition. All purchases and sales of financial assets are
recognized on the clearance date.
Financial assets measured at amortized cost are held to maturity date within a business model to
collect contractual cash flows and these cash flows consist solely of payments of principal and interest
on the principal amount outstanding. Financial assets measured at amortized cost include mainly trade
receivables, prepaid income, accrued income and other receivables.
In initial recognition of financial asset classified as at amortized cost, the asset is measured at fair value
including transaction costs that are directly attributable to the acquisition. Due to their nature current
trade receivables’ and other receivables’ carrying amount approximate to its fair value. Interest income
related to these financial assets is measured with the eective interest rate method and is included in
the financial income. Financial assets are derecognized from the statement of financial position when the
contractual rights to the cash flows from the financial asset expire or the entity substantially transfers the
risks and rewards outside the group. Profit or loss related to the derecognition of financial assets from the
statement of financial position is recognized in the statement of income. Impairment losses are recognized
in the statement of income.
Financial assets recognized at fair value through profit and loss are financial assets that are held
for trading purposes such as derivative financial instruments for which Vaisala does not apply hedge
accounting according to IFRS 9. Realized and unrealized gains and losses arising from changes in fair
value are recognized in the statement of income in the period in which they arise. Financial assets held for
trading as well as those maturing within 12 months are included in current assets.
Impairment of financial assets
Credit loss allowance for trade receivables and contract assets is measured applying simplified approach
according to IFRS 9 as no significant financing component is included in those assets. Lifetime expected
credit losses are determined based on the provision matrix, utilizing dierent credit risk across dierent
receivable groups. The groupings are based on aging buckets, geographical regions, existence of
collaterals and insolvency proceedings or other evidence of an increased credit risk of the receivables.
Expected credit loss risks for dierent receivable groups are based on historical loss rates and
management estimates. Changes in the credit loss allowance based on lifetime expected credit losses as
well as final credit losses are recognized in the statement of income.
Cash and cash equivalents are recognized in the statement of financial position at original cost. Cash
and cash equivalents consist of cash on bank accounts and bank deposits.
Financial liabilities
Financial liabilities are classified into following categories: at amortized cost and at fair value through profit
and loss. Financial liabilities are initially measured at fair value based on the original consideration received.
Transaction costs are included in the original carrying amount of the financial liabilities. Subsequently all
financial liabilities, except for derivative financial instruments, are measured applying the eective interest
method at amortized cost. Financial liabilities are included both in current and non-current liabilities and
those may be both interest-bearing and non-interest-bearing. Liabilities maturing in less than 12 months
are presented in current liabilities. Financial liabilities are derecognized from statement of financial position
when the obligation specified in the contract is discharged, cancelled or expires.
Derivative financial instruments
The group’s all derivative financial contracts are foreign exchange forward contracts. The group has
sales in a number of currencies. All derivative financial contracts are classified at fair value through profit
and loss and are initially measured at fair value on the closing date of the derivative financial contract.
Derivative financial contracts are subsequently measured at fair value through profit and loss at the end of
each reporting date. The fair value of a foreign exchange forward contract is measured at the present value
of the future cash flows. Unrealized and realized gains and losses arising from changes in the fair value
are recognized in the statement of income in financial income and expenses in the period in which they
arise. Derivative financial contracts are included in the statement of financial position in other receivables
and payables. The group does not apply hedge accounting under IFRS 9 to foreign exchange forward
contracts.
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The fair value of the derivative financial contracts is based on information that is observable for the
asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). In addition to the
quoted prices, Vaisala prepares own assessment using commonly acceptable valuation techniques. Hence
Vaisala’s derivative financial contracts belong to the level 2 in fair value hierarchy. There were no transfers
between the hierarchy levels in 2020 or 2021.
The group has a number of investments in foreign subsidiaries whose net assets are exposed to
currency risk. The group does not hedge the currency risk related to subsidiaries’ net assets.
Classification of financial assets and liabilities as of December 31, 2021
EUR million
Fair value
through
profit and
loss
Amortized
cost
Carrying
amount of
statement
of financial
position items Fair value Note
Financial assets
Non-current receivables 0.0 0.9 0.9 0.9 20
Trade receivables and other receivables 0.0 73.5 73.5 73.5 12
Cash and cash equivalents 77.9 77.9 77.9 23
Total 0.1 152.2 152.2 152.2
Financial liabilities
Interest-bearing non-current loans from
financial institutions 40.0 40.0 40.0 21
Interest-bearing non-current lease
liabilities 7.7 7.7 7.7 17
Other non-current liabilities 1.3 1.3 1.3 21
Interest-bearing current loans from
financial institutions 21
Interest-bearing current lease liabilities 2.4 2.4 2.4 17
Interest-bearing current liabilities 0.1 0.1 0.1 21
Trade payables and other liabilities 1.3 82.6 83.9 83.9 14
Total 1.3 134.0 135.3 135.3
Classification of financial assets and liabilities as of December 31, 2020
EUR million
Fair value
through
profit and
loss
Amortized
cost
Carrying
amount of
statement
of financial
position items Fair value Note
Financial assets
Non-current receivables 0.0 0.9 0.9 0.9 20
Trade receivables and other receivables 1.2 62.9 64.0 64.0 12
Cash and cash equivalents 45.4 45.4 45.4 23
Total 1.2 109.0 110.2 110.2
Financial liabilities
Interest-bearing non-current loans
from financial institutions 40.0 40.0 40.0 21
Interest-bearing non-current lease
liabilities 9.2 9.2 9.2 17
Other non-current liabilities 0.1 2.5 2.6 2.6 21
Interest-bearing current loans from
financial institutions 5.0 5.0 5.0 21
Interest-bearing current lease liabilities 2.7 2.7 2.7 17
Interest-bearing current liabilities 0.2 0.2 0.2 21
Trade payables and other liabilities 0.1 52.2 52.3 52.3 14
Total 0.2 111.8 112.0 112.0
Vaisala has a EUR 40 million unsecured term loan which was signed on May 25, 2020. The loan matures
in three years from the signing date and has a financial covenant (gearing), which is tested semi-annually.
On December 31, 2021, Vaisala was in compliance with the covenant. This facility is used for refinancing
of existing indebtedness as well as for general corporate and working capital purposes. In addition,
Vaisala has a EUR 50 million unsecured revolving credit facility which was signed on October 5, 2018.
The committed credit facility agreement matures in 5 years from the signing date and it has no financial
covenants. In addition, Vaisala has a domestic commercial paper program amounting to EUR 150 million
that was not utilized as of December 31,2021.
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On December 31, 2021, Vaisala had interest-bearing liabilities totaling EUR 50.2 (57.0) million. Group has
no loans that would mature after five years or more.
Maturity and interest rates of interest-bearing liabilities 2021
EUR million 2022 2023–2026 2027–2031 2032–2033 Interest rates
Loans from financial
institutions 40.0 1.1%
Revolving credit facility 0.65%
Other interest-bearing
loans 0.1 1.0%
Lease liabilities 2.7 4.7 2.5 1.8 0.52–8.69%
Total 2.8 44.7 2.5 1.8
Maturity and interest rates of interest-bearing liabilities 2020
EUR million 2021 2022–2025 2026–2030 2031–2033 Interest rates
Loans from financial
institutions 40.0 1.1%
Revolving credit facility 5.0 0.65%
Other interest-bearing
loans 0.2 1.0%
Lease liabilities 3.0 5.9 2.7 2.2 0.5–8.69%
Total 8.2 45.9 2.7 2.2
Derivative financial contracts
EUR million 2021 2020
Nominal value of derivative financial contracts made to hedge against
exchange rate risk
Foreign exchange forward contracts 35.2 31.4
Nominal value, total 35.2 31.4
Nominal value of derivative financial contracts in currencies
2021 2020
Currency million EUR million Currency million EUR million
USD 22.0 18.5 19.0 16.5
CNH 30.0 3.9 40.0 5.0
GBP - - - -
HRK 22.5 3.0 22.5 3.0
JPY 300.0 2.3 250.0 2.0
PLN 18.0 3.9 - -
SEK 32.5 3.1 33.0 3.1
SGD 1.0 0.6 3.0 1.9
Total 35.2 31.4
Maturity of derivative financial contracts
EUR million 2021 2020
Less than 90 days 16.4 9.6
Over 90 days and less than 120 days 4.2 2.7
Over 120 days and less than 180 days 7.7 5.8
Over 180 days and less than 365 days 5.4 9.1
Over 365 days and less than 545 days 1.5 4.2
Total 35.2 31.4
Fair value of derivative financial contracts made to hedge against exchange rate risk
EUR million 2021 2020
Fair values of derivative financial contracts, assets 0.0 1.2
Fair values of derivative financial contracts, liabilities 1.3 0.2
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22. INTEREST-BEARING LIABILITIES AND OTHER ADJUSTMENTS
IN CASH FLOW STATEMENT
Reconciliation of movements of interest-bearing liabilities to cash flow arising from financing activities
EUR million Dec 31, 2020 Cash flow eect
Non-cash
changes Dec 31, 2021
Loans from financial
institutions 40.0 40.0
Credit facility 5.0 -5.0 0.0
Lease liabilities 11.9 -3.1 1.3 10.1
Other interest-bearing
liabilities 0.2 -0.1 0.1
Exchange rate dierences 0.1
Total 57.1 -8.1 1.3 50.2
Reconciliation of movements of interest-bearing liabilities to cash flow arising from financing activities
EUR million Dec 31, 2019 Cash flow eect
Non-cash
changes Dec 31, 2020
Loans from financial
institutions - 40.0 40.0
Credit facility 40.0 -35.0 5.0
Lease liabilities 11.3 -3.3 3.8 11.9
Other interest-bearing
liabilities 0.2 0.2
Exchange rate dierences 0.1
Total 51.5 1.8 3.8 57.1
Specification of other adjustments in the cash flow from operating activities
EUR million 2021 2020
Change in bad debt provision -0.2 -0.3
Change in excess and obsolete provision in inventory 0.7 -3.6
Change in provisions 0.2 -1.3
Adjustment related to share-based incentive plans 1.7 0.2
Other adjustments 0.5 -0.7
Total 3.1 -5.6
23. CASH AND CASH EQUIVALENTS
Accounting principles related to cash and cash equivalents are presented in Note 21, Financial Assets and
Liabilities.
Cash and cash equivalents
EUR million 2021 2020
Cash and cash equivalents 77.9 45.4
The fair values of cash and cash equivalents are equivalent to their carrying amounts.
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24. CONTINGENT LIABILITIES AND PLEDGES GIVEN
Contingent liabilities and pledges given
EUR million 2021 2020
Bank guarantees issued for obligations 15.0 17.4
Investment commitments
Group had commitments related to Vantaa building project in total of EUR (0.0) 0.3 million as of
December 31, 2021. In addition, Vaisala had other commitments related to intangible and tangible assets for
EUR 3 (4) million.
Purchase commitments
Group had purchase commitments totaling EUR 30 (12) million. Additionally, group had commitments
under the purchase agreements totaling a maximum of EUR 29 (18) million, if realized.
Consolidation
25. BUSINESS COMBINATIONS
On January 27, 2022, Vaisala acquired all membership units in US-based Whether or Knot, LLC (dba
AerisWeather), a subscription-based software company providing weather and environmental information.
The acquisition supports execution of Weather and Environment Business Area’s strategy to drive growth
in Data as a Service and Software as a Service recurring revenue businesses.
In 2021, AerisWeather’s (unaudited) net sales were EUR 2.7 million and the statement of financial
position totaled EUR 1.1 million on December 31, 2021.
The preliminary consideration transferred (paid in cash) was EUR 23 million.
Acquisition related costs are EUR 0.5 million, of which the majority will be recognized in the
consolidated statement of income for the financial year 2022.
As the acquisition was finished after the end of the reporting period, the initial accounting of the
business combination is incomplete at the time financial statements are authorised for issue and the assets
acquired, liabilities assumed and consideration transferred related to the business combination have not
been recognized in the consolidated statement of income and statement of financial position for 2021.
AerisWeather is consolidated as part of Vaisala Group’s consolidated statement of income and statement
of financial position as of February 2022.
There were no business combinations during financial year 2021 and 2020.
A contingent consideration liability relating to prior acquisitions totaling EUR 1.0 million was paid in
2021 (2020: no contingent consideration liability relating to prior acquisitions was paid). The remaining
contingent liability related to prior acquisitions was EUR 5.6 (2.2) million at the end of financial year 2021.
In the financial year 2021, contingent consideration liability amounting to EUR 4.5 million was recognized
as expense (2020: EUR 1.8 million was recognized as income) based on the financial performance after the
acquisition and based on the estimated future performance.
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26. SUBSIDIARIES
Name Country
Group
ownership %,
Dec 31, 2021
Group
ownership %,
Dec 31, 2020
Vaisala Holding Oy Finland 100 100
Vaisala Limited United Kingdom 100 100
Vaisala Pty. Ltd. Australia 100 100
Vaisala GmbH Germany 100 100
Vaisala KK Japan 100 100
Vaisala Inc. United States 100 100
Vaisala China Ltd. China 100 100
Vaisala Canada Inc. Canada 100 100
Vaisala SAS France - 100
Vaisala Sdn. Bhd. Malaysia 100 100
Vaisala Servicos De Marketing Ltda Brazil 100 100
3TIER R&D India Private Limited India 100 100
Vaisala East Africa Limited Kenya 100 100
Vaisala Mexico Limited, S. de R. L. de C.V. Mexico 100 100
Vaisala France SAS
(former Leosphere SAS) France 95.79 92.22
Upwind SAS France 100 100
SCI Septentrion France 100 100
K-Patents (Shanghai) Co.,Ltd. China 100 100
Vaisala Shanghai Sensors Ltd. China 100 100
Vaisala SAS was merged into Leosphere SAS on July 30, 2021. The name of Leosphere SAS was changed
to Vaisala France SAS on October 1, 2021.
On April 1, 2020 Vaisala Digital Oy was merged into Vaisala Corporation. On November 1, 2020
K-Patents Inc. was merged into Vaisala Inc.
27. ASSOCIATED COMPANY
Accounting principles related to associated companies are presented in Consolidation principles.
The group has one associated company, SAS Meteorage. SAS Meteorage is a French company, which
maintains lightning detection networks and sells information related to lightning strikes. Ownership in
Meteorage supports Vaisala’s role in the global lightning detection community.
Company name
Place of incorporation and
principal place of business Share of ownership Measurement method
SAS Meteorage France 35% Equity method
Summarized financial information of the associated company
EUR million 2021 2020
Non-current assets 3.5 3.3
Current assets 3.3 3.4
Liabilities 3.1 3.4
Net assets 3.7 3.2
Vaisala’s share of net assets 1.3 1.1
Net sales 4.6 4.0
Result for the financial year 0.7 0.5
The information presented in the table is based on the latest available financial information.
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Carrying amount of investments in associated company
EUR million 2021 2020
Carrying amount at Jan 1 1.1 1.1
Share of result 0.2 0.2
Dividend received -0.1 -0.1
Carrying amount at Dec 31 1.3 1.1
The carrying value of the associated company does not include goodwill.
Transactions with associated company and receivables and liabilities
EUR million 2021 2020
Sales 0.8 0.3
Receivables 0.0 0.1
Other notes
28. RELATED PARTY TRANSACTIONS
Related parties of Vaisala group are the parent company, subsidiaries, associated company, members of
Board of Directors and Vaisala Management Group. Related party transactions are based on market prices
of goods and services and on common market terms. Only transactions that are not eliminated in the
consolidated financial statements are disclosed as related party information.
The subsidiaries are presented in note 26, Subsidiaries and the associated company in note 27,
Associated company. Transactions with the associated company as well as receivables and liabilities are
presented in note 27, Associated company.
Kjell Forsén served as the President and CEO until September 30, 2020 and Kai Öistämö assumed the
position on October 1, 2020.
Employee benefits of management
EUR thousand 2021 2020
Salary and bonuses of the President and CEO (payment basis)
Öistämö Kai (from Oct 1, 2020 on)
Salary 481 114
Short term incentives 40 -
Share-based payment 263 -
Statutory pension 81 17
Supplementary pension 114 29
Total 979 159
Forsén Kjell (until Sep 30, 2020)
Salary - 394
Short term incentives - 363
Share-based payment - 1,221
Statutory pension - 121
Supplementary pension - 90
Total - 2,189
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EUR thousand 2021 2020
Remuneration of the members of Vaisala Management Group
(excl. the President and CEO) (payment basis)
Salaries 1,730 1,424
Short term incentives 357 805
Share-based payment 2,185 2,606
Statutory pension 324 351
Supplementary pension 272 245
Total 4,868 5,430
In 2020, Kjell Forsén was paid EUR 143 thousand salary and EUR 30 thousand supplementary pension
in addition to remuneration of President and CEO. In 2021, Kjell Forsén was paid EUR 185 thousand short
term incentive for 2020, as well as share-based payment for LTI 2018, LTI 2019–2021, and LTI 2020–2022
programs totaling EUR 1,864 thousand.
The President and CEO Kai Öistämö is entitled to participate in a supplementary defined contribution
pension plan with an annual fee corresponding to three month’s base salary. The President and CEO’s
retirement age is 62 years. The notice period for both parties is six months. If the company terminates the
agreement, there is an additional severance pay equaling six times the monthly salary.
Remuneration of the Board of Directors 2021 (payment basis)
EUR thousand Annual remuneration
Compensation,
Audit Committee
Compensation,
Remuneration and
Human Resources
Committee Total
Castrén Petri Member of the Board 40 5 45
Jääskeläinen Antti Member of the Board 40 5 45
Lundström Petra Member of the Board 40 5 45
Rinnevaara Jukka Member of the Board 40 5 45
Ståhlberg Kaarina Member of the Board 40 8 48
Syrjänen Tuomas Member of the Board 40 3 43
Voipio Raimo Vice Chair of the Board 40 4 44
Voipio Ville Chair of the Board 55 1 5 61
Total 335 23 18 376
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Remuneration of the Board of Directors 2020 (payment basis)
EUR thousand Annual remuneration
Compensation,
Audit Committee
Compensation,
Remuneration and
Human Resources
Committee
Compensation,
Nomination Committee Total
Castrén Petri Member of the Board 35 6 1 42
Jääskeläinen Antti Member of the Board (since June 3, 2020) 35 3 38
Lundström Petra Member of the Board 35 6 41
Rinnevaara Jukka Member of the Board 35 3 5 10 53
Ståhlberg Kaarina Member of the Board 35 8 10 53
Syrjänen Tuomas Member of the Board 35 35
Torstila Pertti Member of the Board (until June 3, 2020) - -
Voipio Raimo Chair of the Board 45 10 55
Voipio Ville Vice Chair of the Board 35 6 6 10 57
Total 290 26 18 40 374
To the President and CEO and the members of the Board have not been granted loans nor have guarantees or commitments been given on their behalf.
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29. AUDITOR’S FEES
Authorized Public Accountants Deloitte
EUR million 2021 2020
Audit 0.5 0.4
Tax advice 0.0 0.0
Statements 0.0 0.0
Other fees 0.0 0.1
Total 0.6 0.5
Other audit companies
EUR million 2021 2020
Audit - 0.0
Other fees - 0.0
Total - 0.0
Other work than audit services given by the principal auditor Deloitte Oy during the year 2021 were
EUR0.1 (0.1) million.
30. APPLICATION OF NEW AND REVISED STANDARDS AND INTERPRETATIONS IN
ISSUE BUT NOT YET EFFECTIVE
IASB published the following new or revised standards which the group has not yet adopted and which
may have an eect on the consolidated financial statements of the group. The group will adopt each
standard as from the eective date, or if the eective date is other than the first day of the financial year,
from the beginning of the next financial year after the eective date.
At the date of authorisation of these financial statements, the group has not applied the following new
and revised IFRS Standards that have been issued but are not yet eective and had not yet been adopted
by the EU (marked with *):
• IFRS 17 Insurance Contracts
• IFRS 10 and IAS 28 (amendments): Sale or Contribution of Assets between an Investor and its
Associate or Joint Venture
• Amendments to IAS 1 Classification of Liabilities as Current or Non-current *
• Amendments to IFRS 3 Reference to the Conceptual Framework
• Amendments to IAS 16 Proceeds before Intended Use
• Amendments to IAS 37 Onerous Contracts – Cost of Fulfilling a Contract
• Annual Improvements to IFRS Standards 2018-2020 Cycle Amendments to IFRS 1, IFRS 9, IFRS 16 and
IAS 41
• Amendments to IAS 1 and IFRS Practice Statement 2 Disclosure of Accounting Policies *
• Amendments to IAS 8 Definition of Accounting Estimates *
• Amendments to IAS 12 Deferred Tax related to Assets and Liabilities Arising from a Single Transaction *
• Amendments to IFRS 17 Initial Application of IFRS 17 and IFRS 9 – Comparative Information *
The management expects that the adoption of the standards will have no or not material impact on the
financial statements of the group in future periods.
IFRS 17 Insurance Contracts and Amendments to IFRS 4: Deferral of IFRS 9
IFRS 17 establishes the principles for the recognition, measurement, presentation and disclosure
of insurance contracts and supersedes IFRS 4 Insurance Contracts. In June 2020, the IASB issued
Amendments to IFRS 17 that defer the date of initial application of IFRS 17 (incorporating the
amendments) to annual reporting periods beginning on or after January 1, 2023. The application of the
new standard is not anticipated to have an impact on the group’s consolidated financial statements in
future periods as the group does not hold any insurance contracts.
Amendments to IFRS 10 and IAS 28: Sale or contribution of assets between an
investor and its associate or joint venture
The amendments to IFRS 10 and IAS 28 deal with situations where there is a sale or contribution of assets
between an investor and its associate or joint venture. Specifically, the amendments state that gains or
losses resulting from the loss of control of a subsidiary that does not contain a business in a transaction
with an associate or a joint venture that is accounted for using the equity method, are recognized in the
parent’s profit or loss only to the extent of the unrelated investors’ interests in that associate or joint
venture. Similarly, gains and losses resulting from the remeasurement of investments retained in any
former subsidiary (that has become an associate or a joint venture that is accounted for using the equity
method) to fair value are recognized in the former parent’s profit or loss only to the extent of the unrelated
investors’ interests in the new associate or joint venture.
The eective date of the amendments has yet to be set by the Board; however, earlier application of
the amendments is permitted. The application of these amendments may have an impact on the group’s
consolidated financial statements in future periods should such transactions arise.
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Amendments to IAS 1: Classification of liabilities as current or non-current
The amendments to IAS 1 aect only the presentation of liabilities as current or non-current in the
statement of financial position and not the amount or timing of recognition of any asset, liability, income or
expenses, or the information disclosed about those items. The amendments clarify that the classification
of liabilities as current or non-current is based on rights that are in existence at the end of the reporting
period, specify that classification is unaected by expectations about whether an entity will exercise its
right to defer settlement of a liability, explain that rights are in existence if covenants are complied with at
the end of the reporting period, and introduce a definition of ’settlement’ to make clear that settlement
refers to the transfer to the counterparty of cash, equity instruments, other assets or services.
The amendments are applied retrospectively for annual periods beginning on or after January 1, 2023,
with early application permitted. The adoption of the amendment is not expected to have an impact on
the consolidated financial statements in future periods.
Amendments to IFRS 3: Reference to the conceptual framework
The amendments update IFRS 3 so that it refers to the 2018 Conceptual Framework instead of the 1989
Framework. They also add to IFRS 3 a requirement that, for obligations within the scope of IAS 37, an
acquirer applies IAS 37 to determine whether at the acquisition date a present obligation exists as a result
of past events. For a levy that would be within the scope of IFRIC 21 Levies, the acquirer applies IFRIC 21
to determine whether the obligating event that gives rise to a liability to pay the levy has occurred by the
acquisition date. Finally, the amendments add an explicit statement that an acquirer does not recognize
contingent assets acquired in a business combination.
The amendments are eective for business combinations for which the date of acquisition is on or
after the beginning of the first annual period beginning on or after January 1, 2022. Early application is
permitted if an entity also applies all other updated references (published together with the updated
Conceptual Framework) at the same time or earlier. The application of this amendment may have an
impact on the group’s consolidated financial statements in future periods should such transactions arise.
Amendments to IAS 16: Proceeds before intended use
The amendments prohibit deducting from the cost of an item of property, plant and equipment any
proceeds from selling items produced before that asset is available for use, i.e. proceeds while bringing the
asset to the location and condition necessary for it to be capable of operating in the manner intended by
management. Consequently, an entity recognizes such sales proceeds and related costs in profit or loss.
The entity measures the cost of those items in accordance with IAS 2 Inventories.
The amendments also clarify the meaning of ’testing whether an asset is functioning properly’. IAS
16 now specifies this as assessing whether the technical and physical performance of the asset is such
that it is capable of being used in the production or supply of goods or services, for rental to others, or
for administrative purposes. If not presented separately in the statement of comprehensive income, the
financial statements shall disclose the amounts of proceeds and cost included in profit or loss that relate
to items produced that are not an output of the entity’s ordinary activities, and which line item(s) in the
statement of comprehensive income include(s) such proceeds and cost.
The amendments are applied retrospectively, but only to items of property, plant and equipment that
are brought to the location and condition necessary for them to be capable of operating in the manner
intended by management on or after the beginning of the earliest period presented in the financial
statements in which the entity first applies the amendments. The entity shall recognize the cumulative
eect of initially applying the amendments as an adjustment to the opening balance of retained earnings
(or other component of equity, as appropriate) at the beginning of that earliest period presented.
The amendments are eective for annual periods beginning on or after January 1, 2022, with early
application permitted. The application of this amendment may have an impact on the group’s consolidated
financial statements in future periods should such transactions arise.
Amendments to IAS 37: Onerous contracts – Cost of fulfilling a contract
The amendments specify that the ’cost of fulfilling’ a contract comprises the ’costs that relate directly
to the contract’. Costs that relate directly to a contract consist of both the incremental costs of fulfilling
that contract (examples would be direct labor or materials) and an allocation of other costs that relate
directly to fulfilling contracts (an example would be the allocation of the depreciation charge for an item of
property, plant and equipment used in fulfilling the contract).
The amendments apply to contracts for which the entity has not yet fulfilled all its obligations at the
beginning of the annual reporting period in which the entity first applies the amendments. Comparatives
are not restated. Instead, the entity shall recognize the cumulative eect of initially applying the
amendments as an adjustment to the opening balance of retained earnings or other component of equity,
as appropriate, at the date of initial application.
The amendments are eective for annual periods beginning on or after January 1, 2022, with early
application permitted. The application of these amendments may have an impact on the group’s
consolidated financial statements in future periods should such transactions arise.
Annual improvements to IFRS Standards 2018-2020 cycle:
Amendments to IFRS 1, IFRS 9 and IAS 41
The Annual Improvements include amendments to three Standards:
• IFRS 1 First-time Adoption of International Financial Reporting Standards and IAS 41 Agriculture:
The amendments are eective for annual periods beginning on or after January 1, 2022, with early
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application permitted. The amendments do not have an impact on the consolidated financial
statements in future periods.
• IFRS 9 Financial Instruments: The amendment clarifies that in applying the ’10 per cent’ test to assess
whether to derecognize a financial liability, an entity includes only fees paid or received between the
entity (the borrower) and the lender, including fees paid or received by either the entity or the lender
on the other’s behalf. The amendment is applied prospectively to modifications and exchanges that
occur on or after the date the entity first applies the amendment. The amendment is eective for
annual periods beginning on or after January 1, 2022, with early application permitted. The application
of this amendment may have an impact on the group’s consolidated financial statements in future
periods should such transactions arise.
Amendments to IAS 1 and IFRS Practice Statement 2: Disclosure of accounting
policies
The amendments change the requirements in IAS 1 with regard to disclosure of accounting policies. The
amendments replace all instances of the term ’significant accounting policies’ with ’material accounting
policy information’. Accounting policy information is material if, when considered together with other
information included in an entity’s financial statements, it can reasonably be expected to influence
decisions that the primary users of general purpose financial statements make on the basis of those
financial statements.
The supporting paragraphs in IAS 1 are also amended to clarify that accounting policy information that
relates to immaterial transactions, other events or conditions is immaterial and need not be disclosed.
Accounting policy information may be material because of the nature of the related transactions, other
events or conditions, even if the amounts are immaterial. However, not all accounting policy information
relating to material transactions, other events or conditions is itself material.
The Board has also developed guidance and examples to explain and demonstrate the application of
the ’four-step materiality process’ described in IFRS Practice Statement 2.
The amendments to IAS 1 are eective for annual periods beginning on or after January 1, 2023, with
earlier application permitted and are applied prospectively. The amendments to IFRS Practice Statement
2 do not contain an eective date or transition requirements. Vaisala will revise its materiality assessment
principles related to disclosure of accounting principles in the group’s consolidated financial statements to
reflect the amendments, but the adoption of the amendments is not expected to have an impact on the
consolidated financial statements in future periods.
Amendments to IAS 8: Definition of accounting estimates
The amendments replace the definition of a change in accounting estimates with a definition of accounting
estimates. Under the new definition, accounting estimates are “monetary amounts in financial statements
that are subject to measurement uncertainty”.
The definition of a change in accounting estimates was deleted. However, the Board retained the concept
of changes in accounting estimates in the Standard with the following clarifications:
• A change in accounting estimate that results from new information or new developments is not the
correction of an error
• The eects of a change in an input or a measurement technique used to develop an accounting
estimate are changes in accounting estimates if they do not result from the correction of prior period
errors
The Board added two examples (Examples 4-5) to the Guidance on implementing IAS 8, which
accompanies the Standard. The Board has deleted one example (Example 3) as it could cause confusion in
light of the amendments.
The amendments are eective for annual periods beginning on or after January 1, 2023 to changes
in accounting policies and changes in accounting estimates that occur on or after the beginning of that
period, with earlier application permitted. The adoption of the amendment is not expected to have an
impact on the consolidated financial statements in future periods.
Amendments to IAS 12: Deferred tax related to assets and liabilities arising from a
single transaction
The amendments introduce a further exception from the initial recognition exemption. Under the
amendments, an entity does not apply the initial recognition exemption for transactions that give rise to
equal taxable and deductible temporary dierences.
Depending on the applicable tax law, equal taxable and deductible temporary dierences may arise on
initial recognition of an asset and liability in a transaction that is not a business combination and aects
neither accounting nor taxable profit. For example, this may arise upon recognition of a lease liability and
the corresponding right-of-use asset applying IFRS 16 at the commencement date of a lease.
Following the amendments to IAS 12, an entity is required to recognise the related deferred tax asset
and liability, with the recognition of any deferred tax asset being subject to the recoverability criteria in
IAS12.
The Board also adds an illustrative example to IAS 12 that explains how the amendments are applied.
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The amendments apply to transactions that occur on or after the beginning of the earliest comparative
period presented. In addition, at the beginning of the earliest comparative period an entity recognises:
• A deferred tax asset (to the extent that it is probable that taxable profit will be available against which
the deductible temporary dierence can be utilised) and a deferred tax liability for all deductible and
taxable temporary dierences associated with:
• Right-of-use assets and lease liabilities
• Decommissioning, restoration and similar liabilities and the corresponding amounts recognised as
part of the cost of the related asset
• The cumulative eect of initially applying the amendments as an adjustment to the opening balance
of retained earnings (or other component of equity, as appropriate) at that date
The amendments are eective for annual reporting periods beginning on or after January 1, 2023, with
earlier application permitted. Vaisala will assess the impact of the adoption of the amendments to the
group’s consolidated financial statements in the future periods.
Amendments to IFRS 17 initial application of IFRS 17 and IFRS 9 – Comparative
information
The amendments introduce a narrow-scope amendment to the transition requirements of IFRS 17 for
entities that first apply IFRS 17 and IFRS 9 at the same time. An entity that elects to apply the amendment
applies it when it first applies IFRS 17. The adoption of the amendments is not anticipated to have an
impact on the group’s consolidated financial statements in future periods as the group does not hold any
insurance contracts.
31. EVENTS AFTER FINANCIAL YEAR
On January 27, 2022, Vaisala announced acquisition of US-based Whether or Knot, LLC (dba
AerisWeather), a subscription-based software company providing weather and environmental information.
The purchase price (cash and debt free) was USD 26 million (EUR 23 million), and it was paid with cash.
This acquisition supports execution of Vaisala’s Weather and Environment business area’s strategy to drive
growth in Data as a Service and Software as a Service recurring revenue businesses.
AerisWeather’s unaudited net sales in 2021 amounted to USD 3.2 million (EUR 2.7 million), operating
result (EBIT) was at break-even level, and statement of financial position totaled USD 1.3 million (EUR 1.1
million). The company’s net sales are recurring with above 100% net revenue retention and have reached
strong double-digit growth during the past years. Following this acquisition, 17 professionals, located in the
US, transferred to Vaisala. Vaisala will report AerisWeather’s results as part of Weather and Environment
Business Area’s financial results as of February 2022.
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Parent company income statement
EUR Note
Jan 1–Dec 31,
2021
Jan 1–Dec 31,
2020
Net sales 2 299,731,553.65 258,042,714.61
Cost of production and procurement 4, 5 -151,805,227.80 -125,568,131.61
Gross profit 147,926,325.85 132,474,663.00
Cost of sales and marketing 4, 5 -34,962,485.64 -28,955,777.72
Cost of administration
Research and development costs 4, 5 -45,754,708.11 -42,801,165.38
Other administrative costs 4, 5 -48,839,666.98 -34,679,430.27
Other operating income and expenses 3 85,723.75 2,111,678.44
Operating result 18,455,188.87 28,149,968.07
Financial income and expenses 6 1,600,673.53 518,595.19
Result before appropriations and taxes 20,055,862.40 28,668,563.26
Appropriations
Change in depreciation dierence -1,086,208.38 -
Result before taxes 18,969,654.02 28,668,563.26
Direct taxes 7 -3,986,518.34 -5,190,623.55
Result for the financial year 14,983,135.68 23,477,939.71
*
)
The parent company financial statements are prepared in accordance with the principles of Finnish Accounting Standards (FAS).
Parent company financial statements
*
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150
Parent company balance sheet
EUR Note Dec 31, 2021 Dec 31, 2020
Assets
Non-current assets
Intangible assets 8
Goodwill 52,913.86 72,756.55
Intangible rights 931,049.20 1,141,366.40
Other intangible assets 12,269,359.88 15,871,708.60
Advance payments and intangible assets in progress 252,718.15 321,193.74
Total intangible assets 13,506,041.09 17,407,025.29
Property, plant and equipment 8
Land and waters 2,904,868.22 2,904,868.22
Buildings 43,042,031.80 41,056,640.74
Machinery and equipment 21,475,340.43 16,519,872.93
Other tangible assets 74,417.51 74,417.51
Advance payments and construction in progress 8,354,294.35 7,320,714.03
Total property, plant and equipment 75,850,952.31 67,876,513.43
Investments 8
Holdings in group undertakings 74,480,891.87 74,217,965.75
Other shares and holdings 100,000.00 100,000.00
Total investments 74,580,891.87 74,317,965.75
Total non-current assets 163,937,885.27 159,601,504.47
EUR Note Dec 31, 2021 Dec 31, 2020
Current assets
Non-current receivables
Other receivables 49,586.20 83,286.67
Total long-term receivables 49,586.20 83,286.67
Inventories
Materials, consumables and finished goods 35,858,010.93 29,506,789.86
Total inventories 35,858,010.93 29,506,789.86
Current receivables
Trade receivables 17 40,072,940.68 39,211,970.89
Loan receivables 17 - 13,853,801.65
Other receivables 9, 17 5,048,548.29 3,172,581.17
Prepaid expenses and accrued income 10, 17 25,362,525.79 23,713,151.75
Total current receivables 70,484,014.76 79,951,505.46
Cash and cash equivalents 64,634,457.59 35,224,956.85
Total current assets 171,026,069.48 144,766,538.84
Total assets 334,963,954.75 304,368,043.31
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Parent company balance sheet
EUR Note Dec 31, 2021 Dec 31, 2020
Shareholders’ equity and liabilities
Shareholders’ equity 13
Share capital 7,660,807.86 7,660,807.86
Fund of invested non-restricted equity 422,034.34 422,034.34
Retained earnings 151,035,682.19 148,598,395.02
Result for the financial year 14,983,135.68 23,477,939.71
Total shareholders’ equity 174,101,660.07 180,159,176.93
Appropriations
Depreciation dierence 1,086,208.38 -
Provisions 12 97,119.25 97,119.25
EUR Note Dec 31, 2021 Dec 31, 2020
Liabilities
Non-current
Loans from financial institutions 15 40,000,000.00 40,000,000.00
Other non-current liabilities 14 12,857.19 1,789,283.31
Current
Advances received 2,068,348.53 1,350,808.01
Trade payables 17 19,209,492.93 12,334,971.34
Loans from financial institutions 15 - 5,000,000.00
Other current loans 17 35,257,332.86 16,840,917.35
Other current liabilities 14 11,842,938.50 3,865,264.19
Provisions 12 1,026,306.92 914,206.85
Accrued expenses and deferred income 16, 17 50,261,690.12 42,016,296.08
Current liabilities total 119,666,109.86 82,322,463.82
Total liabilities 160,862,294.68 124,208,866.38
Total shareholders’ equity and liabilities 334,963,954.75 304,368,043.31
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Parent company cash flow statement
EUR thousand Note
Jan 1–Dec 31,
2021
Jan 1–Dec 31,
2020
Result for the financial period 14,983 23,478
Depreciation, amortization and impairment 5 11,617 10,231
Financial income and expenses 6 -1,601 -519
Gains and losses on sale of intangible assets and property,
plant and equipment 3 29 -8
Depreciation dierence 1,086
Income taxes 7 3,987 5,191
Other adjustments 1,952 -3,145
Inventories, increase (-) / decrease (+) -6,410 -1,217
Non-interest bearing receivables, increase (-) / decrease (+) -5,138 -2,562
Non-interest bearing liabilities, increase (+) / decrease (-) 20,487 -11,608
Changes in working capital 8,939 -15,387
Paid financial items, net 6 1,292 -1,035
Dividend received from business operations 6 2,624 2,967
Income taxes paid 7 -4,458 -6,947
Cash flow from operating activities 40,450 14,825
Cash flow from investing activities
Investments in shares 8 -263 -164
Investments in intangible assets 8 -287 -324
Investments in property, plant and equipment 8 -15,841 -20,091
Divestments 8 101 8
Proceeds from sale of shares 8 - 122
Repayments on loan receivables 17 13,856 7,249
Cash flow from investing activities -2,434 -13,200
EUR thousand Note
Jan 1–Dec 31,
2021
Jan 1–Dec 31,
2020
Cash flow from financing activities
Proceeds from short-term borrowings 14 63,479 104,656
Repayment of short-term borrowings 14 -50,063 -95,000
Dividend paid 13 -22,022 -21,959
Cash flow from financing activities -8,606 -12,303
Change in cash and cash equivalents increase (+) / decrease (-) 29,410 -10,678
Cash and cash equivalents at Jan 1 35,225 45,526
Change in cash and cash equivalents increase (+) / decrease (-) 29,410 -10,678
Cash received in merger - 377
Cash and cash equivalents at Dec 31 64,634 35,225
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Notes to the parent company
financial statements
1. ACCOUNTING PRINCIPLES
The financial statements of the parent company Vaisala Corporation have been prepared according to the
Finnish Accounting Standards (FAS). Financial statement data are based on original acquisition costs or
nominal value, less possible impairment, if not otherwise stated in the accounting principles outlined below.
Net sales and revenue recognition principles
The parent company’s net sales consist of revenue recognized from contracts with customers. Net sales
are divided into products, projects and services. Indirect taxes and discounts have been deducted from
sales revenue. Exchange rate dierences are recognized in the financial income and expenses.
Product net sales include revenue from products, spare parts and system deliveries. A system delivery
contains a standard product delivery with limited amount of configuration. Revenue from the sale of
product is recognized at a point in time when the control is transferred to the customer.
Projects are integrated projects, in which observation solutions, consisting of products, services and
software, are delivered. Solutions are integrated to customer systems according to customer specifications.
Revenue for all projects is recognized over time using percentage of completion method. Progress is
measured by cost-to-cost method, comparing incurred costs and forecasted costs. Projects meet the over-
time revenue recognition criteria, mainly by creating an asset without an alternative use and Vaisala having
an enforceable right to payment for performance completed to date. The applied revenue recognition
principles fulfill the Finnish Accounting Standard requirement related to the predictability of project
margin.
Services are divided into service contracts and one-o service deliverables. Services may include
maintenance, calibration and repair, modernization, extended warranties and data-based solutions
supporting decisions in weather-dependent operations. Service contracts are continuous services including
for example extended warranty, availability of customer support and availability of spare part delivery.
Service contracts are recognized over time or at a point in time depending on the nature of the service and
content of a contract. In case of one-o request services, the revenue is recognized at a point in time when
the service has been rendered.
Standard warranty period for products is one year and 2, 5 or 10 years for selected products. Standard
warranty period for services is 6 or 12 months. Extended warranty is a separately sold and priced service
over a separately agreed period. Revenue for extended warranty is recognized over time starting at the
time of standard warranty expiration. Provision for warranty costs is recognized in the balance sheet.
Other operating income and expenses
Other operating income and expenses include income and expenses, which are not directly attributable to
operational activities.
Other operating income consists mainly of gains on the disposal of assets as well as income other
than revenue from contracts with customers, such as reversal of liabilities related to acquisitions and
indemnities. Other operating expenses consist mainly of losses on disposal of assets.
Research and development expenses
Research and development expenses are booked as cost in the financial period in which they occur.
Share-based incentive plans
Parent company’s share-based payments are related to share-based incentive plans. Share-based
payments are recognized as costs in the income statement and as accrued expenses in the balance sheet
during the vesting period. The cost of the share part of the share-based payments as well as the cash
part of the share-based payments correspond to the value of share closing price on the grant date of the
incentive plan. The costs are based on an estimate of the amount of shares to be paid at the end of the
vesting period. Assumptions, on which the estimates are based, are updated whenever changes occur and
the eects of changes in assumptions are recognized in the statement of income.
Pensions
The parent company’s statutory pension insurance and voluntary pension plans are managed by external
pension insurance companies. The pensions are all defined contribution plans and the contributions are
expensed to the statement of income as incurred.
The additional pension coverage of parent company personnel was arranged by Vaisala Pension Fund
that was closed on January 1, 1983. The pension fund liability was transferred to a pension insurance
company on December 31, 2005 and the fund was dissolved in 2006. The pension liability of the fund is
fully covered.
Income taxes
Tax expense includes taxes based on taxable profit for the financial year and tax adjustments for previous
years. Current taxes are calculated on the taxable income on the basis of the tax rates enacted by the end
of the financial year.
Non-current assets
Non-current assets consist of intangible assets, property, plant and equipment as well as investments.
Carrying amounts of non-current assets are measured at cost less accumulated depreciation, amortization
and impairment and plus revaluations. Depreciation and amortization according to plan is calculated on a
straight-line basis over the expected useful lifetime of the asset. Land and investments are not depreciated.
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The cost of assets produced for own use includes also overhead costs attributable to the production work.
No interest is capitalized in non-current assets. Estimated useful lifetimes for assets are:
Intangible rights 3–10 years
Buildings and structures 5–40 years
Machinery and equipment 3–8 years
Other tangible assets 3–8 years
Other intangible assets include assets that have an indefinite useful lifetime and are not amortized.
Additionally, merger losses have been allocated to other intangible assets and their useful lifetime is 5–6
years.
Inventories
Inventories are stated at the lower of standard cost and probable purchase or selling price. Inventory cost
includes the cost of purchase (including mainly purchase price, import duties and transport), direct labor
and a proportion of production overhead. An allowance is recorded for excess inventory and obsolescence.
Provisions
Provisions are future expenditure and losses arising from obligations, for which the company is committed
and for which it is not certain or likely that revenue will be generated in the future and which are likely
to occur. A change in the provision is recognized in the same item of the income statement in which the
provision was originally recognized.
Provisions can relate to restructuring of operations, loss-making contracts, warranties, legal disputes
and other commitments.
Derivative financial contracts
Vaisala applies in its accounting of financial instruments valuation according to Accounting Act 5.2§ and
follows Accounting Board’s opinion December 13, 2016 (“KILA 1963/2016”) on valuation of derivative
financial instruments in fair value. All parent company’s derivative financial contracts are foreign exchange
forward contracts. The parent company has sales in a number of foreign currencies, of which the most
significant in 2021 were USD, CNY and JPY. All derivative financial contracts are initially measured at
fair value on the closing date of the derivative financial contract. Derivative financial contracts are
subsequently measured at fair value through profit and loss at the end of the financial year. The fair
value of a foreign exchange forward contract is measured at the present value of the future cash flows.
Unrealized and realized gains and losses arising from changes in the fair value are recognized in the
income statement in financial income and expenses in the period in which they arise. Derivative financial
contracts are included in the balance sheet in prepaid and accrued expenses. The parent company does
not apply hedge accounting.
Foreign currency translation
Transactions in foreign currencies are recorded using the exchange rate on the date of transaction.
Receivables and payables in foreign currency have been valued at the rates quoted by European Central
Bank on the last trading date of the financial year. Foreign exchange gains and losses arising from
revaluation of cash and cash equivalents, trade and other receivables, loan receivables as well as trade and
other payables are recognized as financial income and expense in the income statement.
2. NET SALES
Disaggregation of revenue
Net sales by market area
EUR thousand 2021 2020
Americas 86,357 70,030
of which United States 58,046 49,345
APAC 98,953 80,236
EMEA 114,421 107,777
of which Finland 7,672 9,308
Total 299,732 258,043
Net sales by business area
EUR thousand 2021 2020
Weather and Environment
Products 61,791 56,621
Projects 40,798 37,077
Services 7,135 6,798
Total 109,724 100,497
Industrial Measurements
Products 42,312 34,185
Services 2,266 2,029
Total 44,579 36,213
Net sales from subsidiaries 145,428 121,333
Total 299,732 258,043
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Net sales by timing of revenue recognition
EUR thousand 2021 2020
Revenue recognized at a point in time 108,191 94,130
Revenue recognized over time 46,112 42,579
Net sales from subsidiaries 145,428 121,333
Total 299,732 258,043
Net sales from subsidiaries are mainly recognized at a point in time.
Payment terms
Payment terms vary based on geographical areas. In product and service business, the standard payment
term is 30 days net, but in some areas prepayments are commonly used. Project invoicing is based on
milestones and typically follows the general project delivery terms (where 30% is advance payment,
60% against delivery documents and 10% after site acceptance test) or terms as per contract. In project
business the most common payment terms are letter of credit or as per contract.
Assets and liabilities related to net sales
The following table provides information about receivables and liabilities from contracts with customers
included in the balance sheet.
Assets and liabilities related to net sales
EUR thousand Dec 31, 2021 Dec 31, 2020
Trade receivables 40,073 39,212
Accrued revenue 18,949 17,102
Advances received 2,068 1,351
Deferred revenue 10,345 12,436
Accrued revenue includes the balance of project and service revenue recognized but not yet invoiced.
In general, most of project revenue is recognized after the product manufacturing as percentage of
completion increases and most of the performance obligation is satisfied. According to general project
delivery terms, majority of a project is invoiced before the delivery. Therefore, the amount of accrued
revenue is typically at its highest between product manufacturing phase of the project and delivery of
the product to the customer. For services, which are satisfied over time, the customer is mainly invoiced
in advance and only in some cases in arrears after the customer has received or consumed the service.
Arrears invoicing generates accrued revenue as the revenue is recognized before invoicing.
Advances received are customer payments related to contracts not yet invoiced.
Deferred revenue includes the balance of projects, services and products invoiced but revenue not
yet recognized. Project-related contract liabilities often arise in the early stages of a project, when the
prepayment has been invoiced, but the project is only at an early stage and there is none or little revenue
recognized under percentage of completion method. Services, which are recognized over time, are often
invoiced in advance and therefore deferred revenue is generated in the beginning of the service period.
For products and services, which are recognized at a point in time, deferred revenue is generated when
customer has been invoiced, but performance obligation has not been satisfied and consequently revenue
has not been recognized.
In the financial year 2021, the parent company recognized EUR 6 (7) million revenue that was included
in the deferred revenue balance at the beginning of the period.
On December 31, 2021, the order book amounted to EUR 77.9 (67.0) million. Of the order book,
EUR60.7 (46.3) million is scheduled to be recognized as revenue in 2022 (2021) and EUR 17.2 (20.7) million
is scheduled to be recognized later.
3. OTHER OPERATING INCOME
Other operating income
EUR thousand 2021 2020
Gains on disposal of assets 1 8
Other operating income
Reversal of consideration related to investments in shares - 2,032
Indemnities and other 115 72
Total 117 2,112
Other operating expenses
EUR thousand 2021 2020
Loss on disposal of assets 30 -
Total 30 -
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4. PERSONNEL EXPENSES AND NUMBER OF PERSONNEL
Personnel expenses
EUR thousand 2021 2020
Wages and salaries 95,770 79,536
Pension costs 13,942 11,858
Other personnel costs 2,897 2,319
Total 112,610 93,712
Personnel average
Persons 2021 2020
In Finland 1,287 1,210
Outside Finland 9 8
Total 1,297 1,218
Personnel Dec 31
Persons 2021 2020
In Finland 1,303 1,242
Outside Finland 10 8
Total 1,313 1,250
Kjell Forsén served as the President and CEO until September 30, 2020 and Kai Öistämö assumed the
position on October 1, 2020.
Salary and remunerations of the President and CEO (payment basis)
EUR thousand 2021 2020
Öistämö Kai (from Oct 1, 2020 on)
Salary 481 114
Short term incentives 40 -
Share-based payment 263 -
Statutory pension 81 17
Supplementary pension 114 29
Total 979 159
EUR thousand 2021 2020
Forsén Kjell (until Sep 30, 2020)
Salary - 394
Short term incentives - 363
Share-based payment - 1,221
Statutory pension - 121
Supplementary pension - 90
Total - 2,189
In 2020, Kjell Forsén was paid EUR 143 thousand salary and EUR 30 thousand supplementary pension
in addition to remuneration of President and CEO. In 2021, Kjell Forsén was paid EUR 185 thousand short
term incentive for 2020, as well as share-based payment for LTI 2018, LTI 2019–2021, and LTI 2020–2022
programs totaling EUR 1,864 thousand.
The President and CEO Kai Öistämö is entitled to participate in a supplementary defined contribution
pension plan with an annual fee corresponding to three month’s base salary. The President and CEO’s
retirement age is 62 years. The notice period for both parties is six months. If the company terminates the
agreement, there is an additional severance pay equaling six times the monthly salary.
Remuneration of the Board of Directors 2021 (payment basis)
EUR thousand
Annual
remuneration
Compensation,
Audit
Committee
Compensation,
Remuneration
and Human
Resources
Committee Total
Castrén Petri Member of the Board 40 5 45
Jääskeläinen Antti Member of the Board 40 5 45
Lundström Petra Member of the Board 40 5 45
Rinnevaara Jukka Member of the Board 40 5 45
Ståhlberg Kaarina Member of the Board 40 8 48
Syrjänen Tuomas Member of the Board 40 3 43
Voipio Raimo Vice Chair of the Board 40 4 44
Voipio Ville Chair of the Board 55 1 5 61
Total 335 23 18 376
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Remuneration of the Board of Directors 2020 (payment basis)
EUR thousand
Annual
remu-
neration
Compen-
sation,
Audit
Committee
Compen-
sation,
Remuneration
and Human
Resources
Committee
Compen-
sation,
Nomination
Committee Total
Castrén Petri Member of the Board 35 6 1 42
Jääskeläinen Antti
Member of the Board
(since June 3, 2020) 35 3 38
Lundström Petra Member of the Board 35 6 41
Rinnevaara Jukka Member of the Board 35 3 5 10 53
Ståhlberg Kaarina Member of the Board 35 8 10 53
Syrjänen Tuomas Member of the Board 35 35
Torstila Pertti
Member of the Board
(until June 3, 2020) - -
Voipio Raimo Chair of the Board 45 10 55
Voipio Ville Vice Chair of the Board 35 6 6 10 57
Total 290 26 18 40 374
To the President and CEO and the members of the Board have not been granted loans nor have
guarantees or commitments been given on their behalf.
5. DEPRECIATION, AMORTIZATION AND IMPAIRMENT
EUR thousand 2021 2020
Amortization of intangible assets 4,176 3,963
Depreciation of property, plant and equipment 7,406 6,246
Impairment of intangible and tangible assets 34 22
Total 11,617 10,231
In the financial year 2021 amortization of intangible assets included amortization EUR 3.5 (3.3) million
related to merger losses included in other intangible assets.
6. FINANCIAL INCOME AND EXPENSES
EUR thousand 2021 2020
Dividend income
From group companies 2,624 2,967
Other interest and financial income
From group companies 58 456
From others 1,068 2,443
Interest and other financial expenses
To group companies -15 -62
To others -4,308 -2,010
Foreign exchange gains and losses 2,174 -3,276
Total 1,601 519
7. DIRECT TAXES
EUR thousand 2021 2020
Taxes from the financial year 4,014 5,277
Taxes from previous years -27 -87
Total 3,987 5,191
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8. NON-CURRENT ASSETS
Intangible assets 2021
EUR thousand Goodwill
Intangible
rights
Other
intangible
assets
Advance
payments and
intangible
assets in
progress Total
Acquisition cost Jan 1, 2021 88 29,406 20,361 321 50,175
Increases 205 83 287
Decreases -71 -71
Transfers between items 151 -151 -
Acquisition cost Dec 31, 2021 88 29,691 20,361 253 50,392
Accumulated amortization and write-
downs Jan 1, 2021 15 28,264 4,490 32,769
Accumulated amortization of
decreases and transfers -71 -71
Amortization and write-downs
for the financial year 20 566 3,602 4,188
Accumulated amortization
and write-downs Dec 31, 2021
35 28,760 8,092 36,886
Carrying value Dec 31, 2021 53 931 12,269 253 13,506
Intangible assets 2020
EUR thousand Goodwill
Intangible
rights
Other
intangible
assets
Advance
payments and
intangible
assets in
progress Total
Acquisition cost Jan 1, 2020 29,756 13,428 269 43,453
Increases 218 6,933 105 7,257
Transferred in merger 88 88
Decreases -619 -619
Transfers between items 50 -53 -3
Acquisition cost Dec 31, 2020 88 29,406 20,361 321 50,175
Accumulated amortization and write-
downs Jan 1, 2020 28,185 1,234 29,419
Accumulated amortization of
decreases and transfers -619 -619
Amortization and write-downs
for the financial year 15 698 3,256 3,968
Accumulated amortization
and write-downs Dec 31, 2020
15 28,264 4,490 32,769
Carrying value Dec 31, 2020 73 1,141 15,871 321 17,407
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Property, plant and equipment 2021
EUR thousand Land and waters Buildings
Machinery and
equipment
Other
tangible assets
Advance payments and
construction in progress Total
Acquisition cost Jan 1, 2021 2,820 73,006 57,766 74 7,321 140,987
Increases 4,104 5,043 6,460 15,607
Decreases -358 -2,797 -3,156
Transfers between items 625 4,628 -5,427 -174
Acquisition cost Dec 31, 2021 2,820 77,376 64,641 74 8,354 153,265
Accumulated depreciation and write-downs Jan 1, 2021 37,566 41,246 78,812
Accumulated depreciation of decreases and transfers -358 -2,766 -3,124
Depreciation for the financial year 2,743 4,663 7,406
Write-downs 22 22
Accumulated depreciation and write-downs Dec 31, 2021 39,951 43,165 83,116
Revaluation 84 5,618 5,702
Carrying value Dec 31, 2021 2,905 43,043 21,475 74 8,354 75,851
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Property, plant and equipment 2020
EUR thousand Land and waters Buildings
Machinery and
equipment
Other
tangible assets
Advance payments and
construction in progress Total
Acquisition cost Jan 1, 2020 2,820 49,497 59,663 74 16,816 128,872
Increases 13,641 2,111 4,714 20,466
Decreases -8,320 -8,320
Transfers between items 9,867 4,312 -14,209 -30
Acquisition cost Dec 31, 2020 2,820 73,006 57,766 74 7,321 140,987
Accumulated depreciation and write-downs Jan 1, 2020 35,489 45,381 80,870
Accumulated depreciation of decreases and transfers -8,320 -8,320
Depreciation for the financial year 2,077 4,169 6,246
Write-downs 16 16
Accumulated depreciation and write-downs Dec 31, 2020 37,566 41,246 78,812
Revaluation 84 5,618 5,702
Carrying value Dec 31, 2020 2,905 41,057 16,520 74 7,321 67,877
On December 31, 2021, the carrying amount of machinery and equipment used in production was EUR 14.7 (11.1) million.
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Investments 2021
EUR thousand
Holdings in group
undertakings
Other shares
and holdings Total
Acquisition cost Jan 1, 2021 74,218 100 74,318
Increases 263 - 263
Carrying value Dec 31, 2021 74,481 100 74,581
Investments 2020
EUR thousand
Holdings in group
undertakings
Other shares
and holdings Total
Acquisition cost Jan 1, 2020 81,330 112 81,442
Decreases -7,112 -12 -7,124
Carrying value Dec 31, 2020 74,218 100 74,318
In the financial year 2020, the decreases related to Vaisala Digital Oy’s merger into the parent company on
April 1, 2020 and sale of Elisa Oyj’s shares.
9. OTHER RECEIVABLES
EUR thousand 2021 2020
Advances paid 690 188
Value added tax receivables 2,519 2,221
Grants 1,817 660
Other 22 103
Total 5,049 3,173
10. DEFERRED ASSETS
EUR thousand 2021 2020
Tax receivables 1,881 1,445
Deferred revenue 18,949 17,102
Derivative financial contracts 44 1,177
Deferred interests - 89
Other deferred assets 4,489 3,900
Total 25,363 23,713
Derivative financial contracts
EUR million 2021 2020
Nominal value of derivative financial contracts made
to hedge against exchange rate risk
Foreign exchange forward contracts 35.2 31.4
Nominal value, total 35.2 31.4
Nominal value of derivative financial contracts in currencies
2021 2020
Currency million EUR million Currency million EUR million
USD 22.0 18.5 19.0 16.5
CNH 30.0 3.9 40.0 5.0
HRK 22.5 3.0 22.5 3.0
JPY 300.0 2.3 250.0 2.0
PLN 18.0 3.9 - -
SEK 32.5 3.1 33.0 3.1
SGD 1.0 0.6 3.0 1.9
Total 35.2 31.4
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Maturity of derivative financial contracts
EUR million 2021 2020
Less than 90 days 16.4 9.6
Over 90 days and less than 120 days 4.2 2.7
Over 120 days and less than 180 days 7.7 5.8
Over 180 days and less than 365 days 5.4 9.1
Over 366 days and less than 545 days 1.5 4.2
Total 35.2 31.4
Fair value of derivative financial contracts made to hedge against exchange rate risk
EUR million 2021 2020
Fair values of derivative financial contracts, assets 0.0 1.2
Fair values of derivative financial contracts, liabilities 1.3 0.2
11. DEFERRED TAX ASSETS AND LIABILITIES
Deferred tax assets
EUR thousand 2021 2020
Deferred depreciation and amortization - 26
Share-based payments 2,542 1,212
Provisions 225 202
Total 2,767 1,440
Deferred tax assets and liabilities have not been recognized in the parent company’s balance sheet.
Deferred tax liabilities arising from revaluation have not been taken into account. If realized, the tax eect
of revaluation would be EUR 1.1 million at the current tax rate of 20%. Other deferred tax liabilities were not
material.
12. PROVISIONS
Non-current provisions
EUR thousand 2021 2020
Provisions Jan 1 97 97
Provisions Dec 31 97 97
Current provisions
EUR thousand 2021 2020
Provisions Jan 1 914 1,731
Increases 158 125
Decreases -46 -942
Provisions Dec 31 1,026 914
The provisions in the financial years 2021 and 2020 include warranty provision, loss-making project
provisions and other contractual provisions.
13. SHAREHOLDERS’ EQUITY
The parent company’s shares are divided into series K shares and series A shares. On July 21, 2020 Vaisala
Corporation’s Board of Directors decided to convert 20,306 K shares to series A shares. This conversion
was registered into the Trade Register on July 31, 2020. After this Vaisala Corporation has 36,436,728
shares, of which 6,731,092 are series K shares and 29,705,636 series A shares. The shares do not have
nominal value. The series K shares and A shares are dierentiated by the fact that each series K share
entitles its owner to twenty (20) votes at General Meeting of Shareholders while each series A share
entitles its owner to one (1) vote. The shares have the same rights to dividend. Series K shares can be
converted to series A shares according to specific rules stated in the Articles of Association.
On December 31, 2021 and 2020, the fully paid and registered share capital of Vaisala Corporation
amounted to EUR 7,660,807.86.
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Shareholders’ equity
EUR thousand 2021 2020
Share capital Jan 1 7,661 7,661
Share capital Dec 31 7,661 7,661
Fund of invested non-restricted equity Jan 1 422 422
Fund of invested non-restricted equity Dec 31 422 422
Retained earnings Jan 1 172,076 170,099
Dividend paid -22,022 -21,960
Distribution of treasury shares 1,652 1,598
Loss on transfer of treasury shares -671 -1,139
Retained earnings Dec 31 151,036 148,598
Result for the financial year 14,983 23,478
Total equity 174,102 180,159
Distributable funds
EUR thousand 2021 2020
Retained earnings 151,036 148,598
Result for the financial year 14,983 23,478
Fund of invested non-restricted equity 422 422
Total 166,441 172,498
For the financial year 2020 a dividend of EUR 0.61 per share was paid, a total of EUR 22.0 million.
14. OTHER NON-CURRENT AND CURRENT LIABILITIES
On December 31, 2021, the parent company had other non-current non-interest-bearing liabilities in total of
EUR 0.0 (1.8) million. In 2020, non-current non-interest-bearing liability included contingent consideration
liabilities relating to prior acquisitions totaling EUR 1.2 million, which were transferred to other current
liabilities in 2021. At the end of the financial year, the parent company had no non-current liabilities that will
mature after five years.
On December 31, 2021, other current liabilities were EUR 11.8 (3.9) million. They included contingent
consideration relating to prior acquisitions in total of EUR 5.6 (1.0) million.
In the financial year 2021, contingent consideration liability amounting to EUR 4.5 million was recognized
as expense (2020: EUR 1.8 million was recognized as income) based on the financial performance after the
acquisition and based on the estimated future performance. A contingent consideration liability relating
to prior acquisitions totaling EUR 1.0 million was paid in 2021 (2020: no contingent consideration liability
relating to prior acquisitions was paid).
15. LOANS FROM FINANCIAL INSTITUTIONS
Vaisala has a EUR 40 million unsecured term loan which was signed on May 25, 2020. The loan matures in
three years from the signing date and has a financial covenant (gearing), which is tested semi-annually. On
December 31, 2021, Vaisala was in compliance with the covenant. This facility will be used for refinancing of
existing indebtedness as well as for general corporate and working capital purposes.
In addition, Vaisala has a EUR 50 million unsecured revolving credit facility which was signed on
October 5, 2018. The committed credit facility agreement matures in 5 years from the signing date and it
has no financial covenants. The facility will be used for working capital needs, for financing of acquisitions
and for general corporate purposes. On December 31, 2021, the parent company had interest-bearing
liabilities totaling EUR 40.1 (45.2) million. At the end of the financial period, Vaisala had no loans that would
mature after five years or more. In addition, Vaisala has a domestic commercial paper program amounting
to EUR150 million, that was not utilized as of December 31, 2021.
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16. ACCRUED EXPENSES AND DEFERRED INCOME
EUR thousand 2021 2020
Personnel expense accruals 32,179 24,586
Deferred revenue 10,345 12,436
Derivative financial contracts 1,289 111
Direct tax accruals - 39
Other accrued expenses and deferred income 6,449 4,844
Total 50,262 42,016
Notes related to derivative financial contracts are presented in the note to the financial statements 10,
Deferred assets.
17. RECEIVABLES AND LIABILITIES FROM OTHER COMPANIES IN VAISALA GROUP
EUR thousand 2021 2020
Reveivables
Current loan receivables - 13,854
Trade receivables 20,992 20,286
Other receivables 8 17
Prepaid expenses and accrued income 2,343 3,993
Total receivables 23,344 38,149
Liabilities
Current loans 35,165 16,675
Trade payables 1,447 704
Other liabilities 1 1
Accrued expenses and deferred income 1,921 5,372
Total liabilities 38,534 22,752
18. CONTINGENT LIABILITIES AND PLEDGES GIVEN
Contingent liabilities and pledges gives
EUR thousand 2021 2020
For own debt or liability
Bank guarantees issued for obligations 14,550 16,934
For group companies
Guarantees 211 194
Leasing commitments
Payable during the following financial year 192 224
Payable later 70 133
Total leasing liabilities 262 357
Total contingent liabilities and pledges given 15,023 17,485
Investment commitments
On December 31, 2021, the parent company had commitments related to intangible and tangible assets
for EUR 3 (4) million. In addition, the commitments related to Vantaa building project were EUR 0.0 (0.3)
million.
Purchase commitments
On December 31, 2021, the parent company had purchase commitments totaling EUR 24 (8) million.
19. AUDITOR’S FEES
EUR thousand 2021 2020
Audit 326 287
Statements 28 12
Tax advice - 17
Other fees 48 57
Total 402 373
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Signing of the Board of Directors’
report and financial statements
Vantaa, February 17, 2022
Petri Castrén Antti Jääskeläinen Petra Lundström
Jukka Rinnevaara Kaarina Ståhlberg Tuomas Syrjänen
Raimo Voipio Ville Voipio Kai Öistämö
Vice Chair of the Board Chair of the Board President and CEO
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Auditor’s report (Translation of the Finnish Original)
To the Annual General Meeting of Vaisala Oyj
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of Vaisala Oyj (business
identity code 0124416-2) for the year ended 31 December 2021. The
financial statements comprise the consolidated income statement,
statement of comprehensive income, balance sheet, statement of cash
flows, statement of changes in equity and notes, including a summary
of significant accounting policies, as well as the parent company’s
income statement, balance sheet, statement of cash flows and notes.
In our opinion
• the consolidated financial statements give a true and fair view of the
group’s financial position, financial performance and cash flows in
accordance with International Financial Reporting Standards (IFRS)
as adopted by the EU.
• the financial statements give a true and fair view of the parent
company’s financial performance and financial position in
accordance with the laws and regulations governing the preparation
of financial statements in Finland and comply with statutory
requirements.
Our opinion is consistent with the additional report submitted to the
Audit Committee.
Basis for Opinion
We conducted our audit in accordance with good auditing practice in
Finland. Our responsibilities under good auditing practice are further
described in the Auditor’s Responsibilities for the Audit of the Financial
Statements section of our report.
We are independent of the parent company and of the group
companies in accordance with the ethical requirements that are
applicable in Finland and are relevant to our audit, and we have
fulfilled our other ethical responsibilities in accordance with these
requirements.
In our best knowledge and understanding, the non-audit services
that we have provided to the parent company and group companies
are in compliance with laws and regulations applicable in Finland
regarding these services, and we have not provided any prohibited
non-audit services referred to in Article 5(1) of regulation (EU)
537/2014. The non-audit services that we have provided have been
disclosed in note 29 to the consolidated financial statements.
We believe that the audit evidence we have obtained is sucient
and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment,
were of most significance in our audit of the financial statements of
the current period. These matters were addressed in the context of our
audit of the financial statements as a whole, and in forming our opinion
thereon, and we do not provide a separate opinion on these matters.
We have also addressed the risk of management override of internal
controls. This includconsideration of whether there was evidence of
management bias that represented a risk of material misstatement due
to fraud.
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167
Key audit matter How our audit addressed the key audit matter
Revenue recognition of product and project sales
Refer to Notes 1,2 and 3
• Vaisala group net sales EUR 437,9 million consists of product, service and project sales. Product and
project sales account for EUR 384,0 million of the net sales.
• Revenue from the product sales is recognized at a point in time when the control is transferred to the
customer. Large number of sales contracts and dierent nature of terms of contracts increase the risk
of misstatement in timing of revenue recognition.
• Revenue for projects is recognized over time using percentage of completion method. Progress is
measured by cost-to-cost method, comparing incurred costs and forecasted costs.
• Revenue recognition over time under IFRS 15 requires management estimaterelated to cost throughout
the project delivery.
• This matter is a significant risk of material misstatement referred to in EU Regulation No 537/241, point
(c) of Article 10(2).
Inventory valuation
Refer to Note 13
• Vaisala consolidated balance sheet includes inventory amounting to EUR 49,9 million. Inventory
valuation is associated with the excess and obsolescence risk.
• As disclosed in the note 13 Vaisala has recognized write-os and excess and obsolescence allowances
for slow moving and obsolete inventory.
• Estimation and judgment are required in determining the value of the allowance for excess and obsolete
inventory. Management analyses estimates of demand and determines allowance for excess and
obsolete inventory.
• This matter is a significant risk of material misstatement referred to in EU Regulation No 537/241, point
(c) of Article 10(2).
• Our audit procedures included an assessment of revenue recognition process and assessment of
controls relating to timing of revenue recognition.
• We have reviewed Vaisala´s accounting manual and principles regarding dierent types of revenue
contracts to evaluate, whether they are in line with IFRS 15 accounting principles.
• We have audited the accurate timing and the amount of revenue arising from the sales of products and
from the projects.
• As a part of our audit procedures covering the revenue recognition principles of product sales, we have
compared the sales transactions recorded in accounting to the related sales agreements and delivery
documentation.
• Regarding to the projects we have compared the project calculations to the existing agreements and to
the possible amendments to the agreements.
• We have reviewed the project estimates prepared and reviewed by the management as well as the
realization of these estimates and assessed the level of completion based on the documentation
received.
• We have evaluated the appropriateness of the presentation in the financial statements.
• Our audit procedures included an assessment of inventory process and assessment of controls relating
inventory valuation.
• We have assessed the valuation principles used by the group and analyzed the slow moving inventory to
be able to assure the accuracy of obsolesce provision accounting.
• We have audited inventory valuation by comparing the accounting values to the acquisition and
manufacturing costs as well as to the net realizable values to evaluate that value of inventory do not
exceed the lower of the acquisition and manufacturing costs or net realizable value.
• We have assessed management judgements and estimates regarding the future life cycle and demand
of products.
• We have evaluated the appropriateness of the presentation in the financial statements.
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Responsibilities of the Board of Directors and
President and CEO for the Financial Statements
The Board of Directors and President and CEO are responsible for
the preparation of consolidated financial statements that give a true
and fair view in accordance with International Financial Reporting
Standards (IFRS) as adopted by the EU, and of financial statements
that give a true and fair view in accordance with the laws and
regulations governing the preparation of financial statements in Finland
and comply with statutory requirements. The Board of Directors and
President and CEO are also responsible for such internal control as
they determine is necessary to enable the preparation of financial
statements that are free from material misstatement, whether due to
fraud or error.
In preparing the financial statements, the Board of Directors
and President and CEO are responsible for assessing the parent
company’s and the group’s ability to continue as going concern,
disclosing, as applicable, matters relating to going concern and using
the going concern basis of accounting. The financial statements are
prepared using the going concern basis of accounting unless there is
an intention to liquidate the parent company or the group or cease
operations, or there is no realistic alternative but to do so.
Auditor’s Responsibilities for
the Audit of Financial Statements
Our objectives are to obtain reasonable assurance on whether the
financial statements as a whole are free from material misstatement,
whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance,
but is not a guarantee that an audit conducted in accordance with
good auditing practice will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and
are considered material if, individually or in aggregate, they could
reasonably be expected to influence the economic decisions of users
taken on the basis of the financial statements.
As part of an audit in accordance with good auditing practice, we
exercise professional judgment and maintain professional skepticism
throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial
statements, whether due to fraud or error, design and perform audit
procedures responsive to those risks, and obtain audit evidence that
is sucient and appropriate to provide a basis for our opinion. The
risk of not detecting a material misstatement resulting from fraud
is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.
• Obtain an understanding of internal control relevant to the audit
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on
the eectiveness of the parent company’s or the group’s internal
control.
• Evaluate the appropriateness of accounting policies used and the
reasonableness of accounting estimates and related disclosures
made by management.
• Conclude on the appropriateness of the Board of Directors’
and Chief Executive Ocer’s use of the going concern basis of
accounting and based on the audit evidence obtained, whether
a material uncertainty exists related to events or conditions that
may cast significant doubt on the parent company’s or the group’s
ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor’s
report to the related disclosures in the financial statements or, if such
disclosures are inadequate, to modify our opinion. Our conclusions
are based on the audit evidence obtained up to the date of our
auditor’s report. However, future events or conditions may cause
the parent company or the group to cease to continue as a going
concern.
• Evaluate the overall presentation, structure and content of the
financial statements, including the disclosures, and whether the
financial statements represent the underlying transactions and
events so that the financial statements give a true and fair view.
• Obtain sucient appropriate audit evidence regarding the financial
information of the entities or business activities within the group to
express an opinion on the consolidated financial statements. We are
responsible for the direction, supervision and performance of the
group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding,
among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in
internal control that we identify during our audit.
We also provide those charged with governance with a statement
that we have complied with relevant ethical requirements regarding
independence, and communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence,
and where applicable, related safeguards.
From the matters communicated with those charged with
governance, we determine those matters that were of most
significance in the audit of the financial statements of the current
period and are therefore the key audit matters. We describe these
matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances,
we determine that a matter should not be communicated in our report
because the adverse consequences of doing so would reasonably
be expected to outweigh the public interest benefits of such
communication.
OUR BUSINESS SUSTAINABLE BUSINESS PRACTICESCREATING VALUE GOVERNANCE FINANCIALS
Key figures Board of Directors’ Report Financial statements 2021 Auditor’s report
169
Other Reporting Requirements
Information on our audit engagement
We were first appointed as auditors by the Annual General Meeting
on March 26, 2014 and our appointment represents a total period of
uninterrupted engagement of 8 years.
Other Information
The Board of Directors and President and CEO are responsible for
the other information. The other information comprises the Board of
Directors’ Report and the information included in the Annual Report,
but does not include the financial statements and our auditor’s report
thereon.
Our opinion on the financial statements does not cover the other
information.
In connection with our audit of the financial statements, our
responsibility is to read the other information and, in doing so,
consider whether the other information is materially inconsistent with
the financial statements or our knowledge obtained in the audit, or
otherwise appears to be materially misstated. With respect to the
Board of Directors’ Report, our responsibility also includes considering
whether the Board of Directors’ Report has been prepared in
accordance with the applicable laws and regulations.
In our opinion, the information in the Board of Directors’ Report
is consistent with the information in the financial statements and the
Board of Directors’ Report has been prepared in accordance with the
applicable laws and regulations.
If, based on the work we have performed we conclude that there is
a material misstatement of the other information, we are required to
report that fact. We have nothing to report in this regard.
Other opinions
We support that the financial statements should be adopted.
The proposal by the Board of Directors regarding the treatment
of distributable funds is in compliance with the Limited Liability
Companies Act. We support that the Board of Directors of the parent
company and the President and CEO should be discharged from
liability for the financial period audited by us.
Vantaa, February 17, 2022
Deloitte Oy
Audit Firm
Reeta Virolainen
Authorised Public Accountant (KHT)
OUR BUSINESS SUSTAINABLE BUSINESS PRACTICESCREATING VALUE GOVERNANCE FINANCIALS
Key figures Board of Directors’ Report Financial statements 2021 Auditor’s report
170
Independent Auditor’s Report on the ESEF Consolidated
Financial Statements of Vaisala Oyj (Translation of the Finnish Original)
To the Board of Directors of Vaisala Oyj
We have performed a reasonable assurance engagement on whether
the iXBRL tagging of the consolidated financial statements in the ESEF
consolidated financial statements (743700RNDD7KU11HW873-2021-12-
31-fi.zip) of Vaisala Oyj (0124416-2) for the financial year 1.1.–31.12.2021
has been prepared in accordance with the requirements of Article 4 of
Commission Delegated Regulation (EU) 2018/815 (ESEF RTS).
Responsibilities of the Board of Directors and the
Managing Director
The Board of Directors and Managing Director are responsible for
the preparation of the report of the Board of Directors and financial
statements (ESEF financial statements) that comply with the
requirements of ESEF RTS. This responsibility includes:
• preparation of ESEF financial statements in XHTML format in
accordance with Article 3 of ESEF RTS
• tagging the consolidated financial statements in the ESEF financial
statements with iXBRL tags in accordance with Article 4 of ESEF
RTS, and
• ensuring consistency between ESEF financial statements and
audited financial statements.
The Board of Directors and the Managing Director are also responsible
for such internal control as they determine is necessary to enable
the preparation of ESEF financial statements in accordance with the
requirements of ESEF RTS.
Auditor’s Independence and Quality Control
We are independent of the company in accordance with the ethical
requirements that are applicable in Finland and are relevant to the
engagement we have performed, and we have fulfilled our other ethical
responsibilities in accordance with these requirements.
The auditor applies International Standard on Quality Control 1
and, accordingly, maintains a comprehensive system of quality control
including documented policies and procedures regarding compliance
with ethical requirements, professional standards, and applicable legal
and regulatory requirements.
Auditor’s Responsibilities
In accordance with the engagement letter, we express an opinion on
whether the tagging of the consolidated financial statements in the
ESEF financial statements has been prepared in all material respects
in accordance with the requirements of Article 4 of ESEF RTS. We
conducted a reasonable assurance engagement in accordance with
International Standard on Assurance Engagements ISAE 3000.
The engagement includes procedures to obtain evidence on:
• whether the tagging of the consolidated financial statements in the
ESEF financial statements has been prepared in all material respects
in accordance with the requirements of Article 4 of ESEF RTS, and
• whether the ESEF financial statements are consistent with the
audited financial statements.
The nature, timing and extent of the procedures selected depend on
the auditor’s judgment. This includes the assessment of risk of material
departures from the requirements set out in ESEF RTS, whether due to
fraud or error.
We believe that the evidence we have obtained is sucient and
appropriate to provide a basis for our opinion.
Opinion
In our opinion, the tagging of the consolidated financial statements in
the ESEF financial statements (743700RNDD7KU11HW873-2021-12-31-fi.
zip) of Vaisala Oyj for the financial year 1.1.–31.12.2021 has been prepared
in all material respects in accordance with the requirements of Article 4
of ESEF RTS.
Our audit opinion on the consolidated financial statements of
Vaisala Oyj for the financial year ended 31.12.2021 has been expressed
in our auditor’s report dated 17.2.2022. In this report, we do not express
an audit opinion or any other assurance conclusion on the consolidated
financial statements.
Vantaa, 17 February, 2022
Deloitte Oy
Audit Firm
Reeta Virolainen
Authorized Public Accountant (KHT)
OUR BUSINESS
SUSTAINABLE BUSINESS PRACTICES
CREATING VALUE GOVERNANCE FINANCIALS
Key figures Board of Directors’ Report Financial statements 2021 Auditor’s report
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