Financial
statements
and Board of
Directors’ Report
Key figure graphs
Board of Directors’ Report
Financial statements 2022
Auditor’s report
Key figures
Calculation of key figures
95
96
108
172
176
178
This Board of Directors’ report and financial statements are a non-official
and translated version from Vaisala’s official financial statements and
Board of Directors’ report in accordance with ESEF regulations.
95
Key figure graphs
NET SALES BY
BUSINESS
AREA 2022
Industrial
Measurements
225.6 MEUR
Weather and
Environment
288.6 MEUR
56%
44%
NET SALES BY
BUSINESS
AREA 2022
Industrial
Measurements
225.6 MEUR
Weather and
Environment
288.6 MEUR
56%
44%
NET SALES BY
REGION
2022
Americas: North and South America
APAC: Asia Pacific
EMEA: Europe, Middle-East and Africa
37%
31%
32%
Americas
191 MEUR
APAC
160 MEUR
EMEA
163 MEUR
NET SALES BY
REGION
2022
Americas: North and South America
APAC: Asia Pacific
EMEA: Europe, Middle-East and Africa
37%
31%
32%
Americas
191 MEUR
APAC
160 MEUR
EMEA
163 MEUR
2018 2019
600
500
400
300
200
100
0
2020 2021 2022
NET SALES, MEUR
348.8
403.6
379.5
437.9
514.2
600
500
400
300
200
100
0
2018 2019 2020 2021 2022
ORDERS RECEIVED, MEUR
334.2
419.4
382.8
455.2
533.7
70
60
50
40
30
20
10
0
2018 2019 2020 2021 2022
OPERATING RESULT (EBIT), MEUR
38.9
41.1
44.8
50.1
62.5
200
160
120
80
40
0
2018 2019 2020 2021 2022
ORDER BOOK, MEUR
120.6
139.0
137.8
160.0
181.5
14
12
10
8
6
4
2
0
2018 2019 2020 2021 2022
RESEARCH & DEVELOPMENT COSTS
% OF NET SALES
13.0
13.1
14.0
12.6
12.1
2018 2019 2020 2021 2022
EMPLOYEES AT YEAR-END
* Number of employees includes persons in long-time
absence as of January 1, 2021. Comparison period 2020
has been adjusted accordingly.
2,400
2,000
1,600
1,200
800
400
0
1,816
1,837
1,939*
1,979
2,235
2018 2019
600
500
400
300
200
100
0
2020 2021 2022
NET SALES, MEUR
348.8
403.6
379.5
437.9
514.2
70
60
50
40
30
20
10
0
2018 2019 2020 2021 2022
OPERATING RESULT (EBIT), MEUR
38.9
41.1
44.8
50.1
62.5
Americas: North and South America
APAC: Asia-Pacific
EMEA: Europe, Middle-East, and Africa
OUR BUSINESS SUSTAINABLE BUSINESS PRACTICESCREATING VALUE GOVERNANCE FINANCIALS
Key figure graphs Board of Directors’ report Financial statements 2022 Key figures Auditor’s report
96
Board of Directors’ Report 2022
In 2022, Vaisala’s net sales grew by 17% and were EUR 514.2 (437.9)
million. In constant currencies, net sales increased by 12%. Gross
margin remained close to previous year’s level at 54.8 (55.2) %
following pricing actions and economies of scale generated by volume
growth, although component spot purchased caused significant
additional costs. Operating result increased to EUR 62.5 (50.1) million
and was 12.2 (11.5) % of net sales. The company continued IT system
renewal and long-term investments in R&D as well as in sales and
marketing. Earnings per share was EUR 1.24 (1.08). Financial position
remained strong. The Board of Directors proposes to the Annual
General Meeting that a dividend of EUR 0.72 (0.68) per share be
paidout of distributable earnings totaling EUR 26.1 (24.6) million.
Main key figures
EUR million 2022 2021 2020
Net sales 514.2 437.9 379.5
Gross profit, % 54.8 55.2 56.1
Operating result 62.5 50.1 44.8
% of net sales 12.2 11.5 11.8
Result for the financial year 45.0 39.5 32.8
Earnings per share, EUR 1.24 1.08 0.91
Order book at the end of the financial
year 181.5 160.0 137.8
Return on equity, % 18.7 18.1 16.3
Solvency ratio, % 58.2 57.2 59.0
Gearing, % 3.2 -12.0 5.7
Net working capital 82.4 44.5 61.5
Capital expenditure 13.7 19.2 31.0
Cash flow from operating activities 29.8 80.0 41.0
Average personnel 2,141 1,967 1,929
Calculation of key figures is presented at the end of the Financial
statements and Board of Directors’ Report section of the Annual
Report.
Orders received and order book
EUR million 2022 2021 Change FX*
Orders received 533.7 455.2 17% 12%
Order book, end of period 181.5 160.0 13%
* Change with comparable exchange rates
In 2022, orders received increased by 17% compared to previous year
and totaled EUR 533.7 (455.2) million. Growth of orders received
was very strong in both business areas and orders received grew in
all market segments. Growth was strongest in industrial instruments,
life science, power industry, renewable energy, and aviation market
segments.
At the end of 2022, order book amounted EUR 181.5 (160.0) million
and increased by 13% compared to previous year. Order book increased
in both business areas. EUR 142.9 (125.3) million of the order book is
scheduled to be delivered in 2023.
Financial review 2022
OUR BUSINESS SUSTAINABLE BUSINESS PRACTICESCREATING VALUE GOVERNANCE FINANCIALS
Key figure graphs Board of Directors’ report Financial statements 2022 Key figures Auditor’s report
97
percentage point negative impact on gross margin. This was offset by
pricing and economies of scale generated by volume increase.
In 2022, operating result increased compared to previous year
following growth in net sales and was EUR 62.5 (50.1) million, 12.2
(11.5)% of net sales. Operating expenses increased due to IT system
renewal and investments in sales and marketing as well as in R&D.
In 2022, financial income and expenses were EUR -3.1 (-2.1) million.
This was mainly a result of valuation of USD denominated receivables,
USD currency hedging and interest expenses. Income taxes increased
to EUR 14.5 (8.9) million and effective tax rate was 24.4 (18.4) %. Due
to high amount of expected utilization of tax losses carried forward,
effective tax rate in comparison period was exceptionally low. Result
before taxes was EUR 59.6 (48.3) million and result for the period
EUR45.0 (39.5) million. Earnings per share was EUR 1.24 (1.08).
Statement of financial position, cash flow and financing
Vaisala’s financial position remained strong in 2022. At the end
of December, statement of financial position totaled EUR 439.2
(408.0) million. Cash and cash equivalents totaled EUR 55.5 (77.9)
million. In January 2022, Vaisala acquired Whether or Knot, LLC
(dba AerisWeather), which increased net assets by EUR 23.1 million.
Dividend payment, decided by the Annual General Meeting on
March29, 2022, totaled EUR 24.6 million.
In 2022, cash flow from operating activities decreased to EUR 29.8
(80.0) million. Net result increased cash flow, whereas increase in net
working capital had a negative impact on cash flow.
On December 31, 2022, Vaisala had interest-bearing borrowings
totaling EUR 52.5 (40.1) 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, 2022, Vaisala
was in compliance with the covenant. For short term liquidity purposes,
Vaisala had drawn financing from the domestic commercial paper
markets totaling EUR 12.5 (0.0) million on December 31, 2022. Vaisala
has also a EUR 50 million committed revolving credit facility, which was
undrawn on December 31, 2022, as year before. In addition, interest-
bearing lease liabilities totaled EUR 10.9 (10.1) million.
Capital expenditure and acquisitions
In 2022, capital expenditure in intangible assets and property, plant
and equipment totaled EUR 13.7 (19.2) million. Capital expenditure was
mainly related to investments in machinery and equipment to develop
and maintain Vaisala’s production, R&D, and service operations as well
as facilities.
Depreciation, amortization, and impairment were EUR 23.6 (21.6)
million. This included EUR 8.2 (7.6) million of amortization of identified
intangible assets related to the acquired businesses.
In January 2022, Vaisala acquired 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.
The acquisition was closed during the first quarter and following this
acquisition, 17 professionals, located in the US, transferred to Vaisala.
Vaisala has reported AerisWeather’s results as part of Weather and
Environment business area’s financial results as from February 2022.
Financial performance
EUR million 2022 2021 Change FX*
Net sales 514.2 437.9 17% 12%
Products 375.5 320.3 17%
Projects 73.5 63.6 16%
Services 63.5 51.8 22%
Lease income 1.7 2.1 -19%
Gross margin, % 54.8 55.2
Operating result 62.5 50.1
% of net sales 12.2 11.5
R&D costs 62.4 55.3 13%
Amortization* 8.2 7. 6
* Amortization of intangible assets related to the acquired businesses
** Change with comparable exchange rates
In 2022, net sales increased by 17% compared to previous year and
were EUR 514.2 (437.9) million. In constant currencies, net sales
increased by 12%. Operations outside Finland accounted for 98 (98)%
of net sales. Net sales grew in both business areas and in all market
segments. Net sales increased strongly in industrial instruments,
life science, aviation, renewable energy, and meteorology market
segments.
Gross margin was close to previous year’s level 54.8 (55.2) %.
Additional costs related to component spot purchases had a 2.7 (1.1)
OUR BUSINESS SUSTAINABLE BUSINESS PRACTICESCREATING VALUE GOVERNANCE FINANCIALS
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98
Personnel
The average number of personnel employed in 2022 was 2,141 (1,967).
At the end of 2022, the number of employees was 2,235 (1,979). 77
(77) % of employees were located in EMEA, 16 (15) % in Americas and
8(8) % in APAC. 66 (66) % of employees were based in Finland.
Number of employees by region
Dec 31,
2022
Dec 31,
2021 Change
Americas 350 292 58
APAC 173 156 20
EMEA (excluding Finland) 237 228 9
Finland 1,475 1,303 172
Total 2,235 1,979 256
Number of employees by function
Dec 31,
2022
Dec 31,
2021 Change
Sales and marketing 431 368 63
R&D 637 573 64
Operations 567 491 76
Services 350 331 19
Administration 250 216 34
Total 2,235 1,979 256
Increase in number of employees reflects business growth and
investments in product and technology development. Acquisition of
AerisWeather added 17 professionals in Americas organization.
In 2022, personnel expenses totaled EUR 190.4 (174.3) 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 2018 performance share
plan was based on the group’s profitability in respective calendar year.
From 2019 onwards the performance criteria of the performance share
plans are based on the development of the total shareholder return
(TSR) and the group’s profitability during the three-year plan period.
Matching share plan consists of matching periods as decided by the
Board of Directors and the participants are given an opportunity to
receive matching shares for the predetermined personal investment
in Vaisala’s series A shares. Restricted share plan consists of vesting
periods as decided by the Board of Directors and the participants are
given an opportunity to receive a pre-determined number of restricted
shares. 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
Leadership Team retains their ownership of shares received under this
plan until the value of their ownership in Vaisala corresponds to at least
their annual gross base salary.
On February 7, 2018, the Board of Directors resolved a performance
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 performance
share-based incentive plan 2019–2021. On March 3, 2022, the reward
corresponding to 251,900 series A shares, 100% of the maximum, was
paid to 42 key employees. Of these shares, 2,000 were conveyed to
the President and CEO Kai Öistämö. In addition, on March 3, 2022, a
total of 1,218 series A shares were conveyed without consideration to
an employee participating in the performance share-based incentive
plans 2020–2022 and 2021–2023. 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
performance 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
performance 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.
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On February 17, 2022, the Board of Directors resolved for three
share-based incentive plans.
Performance share-based incentive plan was resolved for the period
2022–2024 for approximately 40 key employees. The reward will
be paid in spring 2025. The maximum amount of this plan originally
corresponded to 161,000 series A shares. The expenses of this plan are
accrued from May 2022 to March 2025. Closing price of Vaisala’s series
A share was EUR 41.45 on the grant date of the incentive plan.
Matching share-based incentive plan was resolved for the period
2022–2026 and shares are earned in matching periods lasting for 12
to 36 months. Restricted share-based incentive plan was resolved for
the period 2022–2026 and shares are earned in vesting periods lasting
for 12 to 36 months. The maximum amount of matching and restricted
share-based incentive plans originally corresponded to 100,000 series
A shares. The expenses of the matching share plan are accrued from
May 2022 to March 2025. The expenses of the restricted share plan are
accrued depending on the timing and length of the vesting period(s).
In 2022, expenses related to share-based incentive plans totaled
EUR 4.0 (5.0) million.
2022 review by business area
Industrial Measurements business area
EUR million 2022 2021 Change FX**
Orders received 234.2 194.4 20% 14%
Order book, end of period 41.8 32.9 27%
Net sales 225.6 181.0 25% 17%
Products 208.1 165.9 25%
Services 17.5 15.1 16%
Gross margin, % 61.9 62.8
Operating result 51.5 43.9
% of net sales 22.8 24.3
R&D costs 25.3 21.1 20%
Amortization* 1.7 1.7
* Amortization of intangible assets related to the acquired businesses
** Change with comparable exchange rates
Industrial Measurements business area’s 2022 orders received
increased by 20% compared to previous year totaling EUR 234.2
(194.4) million. Orders received increased in all market segments and
growth was very strong in industrial instruments, life science, and
power industry markets segments.
At the end of 2022, Industrial Measurements business area’s order
book amounted to EUR 41.8 (32.9) million and increased by 27%
compared to previous year. EUR 39.0 (30.7) million of the order book
is scheduled to be delivered in 2023. Order book increased in industrial
instruments, life science, and power industry market segments and was
at previous year’s level in liquid measurements market segment.
In 2022, net sales were EUR 225.6 (181.0) million and increased
by 25% compared to previous year. In constant currencies, net sales
increased by 17%. Net sales growth was very strong in all market
segments.
Gross margin decreased compared to previous year’s level and was
61.9 (62.8) %. Additional costs related to component spot purchases
had a 3.6 (1.8) percentage point negative impact on gross margin. This
was offset by pricing, product mix, and economies of scale generated
by volume increase.
Industrial Measurements business area’s 2022 operating result
increased compared to previous year following growth in net sales and
totaled EUR 51.5 (43.9) million, 22.8 (24.3) % of net sales. Operating
expenses increased due to IT system renewal and investments in sales
and marketing as well as in R&D.
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Weather and Environment business area
EUR million 2022 2021 Change FX**
Orders received 299.5 260.8 15% 11%
Order book, end of period 139.6 127.1 10%
Net sales 288.6 256.9 12% 8%
Products 167.4 154.4 8%
Projects 73.5 63.6 16%
Services 46.0 36.7 25%
Lease income 1.7 2.1 -19%
Gross margin, % 49.3 49.9
Operating result 11.1 7.6
of net sales, % 3.8 3.0
R&D costs 37.2 34.2 9%
Amortization* 6.6 5.9
* Amortization of intangible assets related to the acquired businesses
** Change with comparable exchange rates
Weather and Environment business area’s 2022 orders received
increased by 15% compared to previous year and totaled EUR 299.5
(260.8) million. Orders received increased in all market segments, and
growth was very strong in renewable energy and aviation.
At the end of 2022, Weather and Environment business area’s
order book amounted to EUR 139.6 (127.1) million and increased by
10% compared to previous year. EUR 103.9 (94.6) million of the order
book is scheduled to be delivered in 2023. Order book increased in
renewable energy and ground transportation market segments, and
was at previous year’s level in aviation and meteorology.
In 2022, net sales were EUR 288.6 (256.9) million and increased
by 12% compared to previous year. In constant currencies, net sales
increased by 8%. Net sales grew in all market segments, and growth
was strong in aviation and renewable energy.
Gross margin was at previous year’s level 49.3 (49.9) %. Additional
costs related to component spot purchases had a 1.9 (0.7) percentage
point negative impact on gross margin. This was offset by improved
gross margin of product business, higher share of more profitable
digital services, and economies of scale generated by volume increase.
Weather and Environment business area’s 2022 operating result
increased compared to previous year and totaled EUR 11.1 (7.6) million,
3.8 (3.0) % of net sales. Operating expenses increased due to IT system
renewal and investments in sales and marketing as well as in R&D.
Strategy and its implementation in 2022
Vaisala’s strategy for 2022–2024 focuses on driving sustainable
growth and global leadership in weather, environmental, and
industrial measurements by managing three types of businesses:
flagship, growth, and emerging businesses. Through its products and
technologies, Vaisala enables business-critical decisions and operations
for its customers. Thereby, the company strongly contributes to solving
global challenges related to climate change, resource efficiency, and
well-being and health.
Industrial Measurements business area drives profitable growth
through product leadership strategy. Goal is to exceed Vaisala’s
average growth target. In 2022, Industrial Measurements business area
exceeded expectations both in flagship and growth businesses. Growth
of net sales in industrial instruments was excellent through-out the
year. Industrial instruments contributed significantly to business area’s
operating result even after additional costs related to component
spot purchases. Net sales in life science, power industry, and liquid
measurements market segments grew very strongly compared
to previous year. Regional expansion continued in APAC with
establishment of Korean subsidiary.
At the beginning of 2022, Industrial Measurements business area
launched TMI100 immersion temperature transmitter on the market,
which is designed for measuring the temperature of cooling/heating
water in HVAC automation systems, especially in data centers.
Accurate and stable measuring devices enable efficient control of
the data center's cooling system, while keeping the temperature and
relative humidity at the right levels in an energy-efficient manner.
Industrial Measurements business area continued development
of Indigo500 software by announcing new features, e.g. analog
input, which enables third-party sensors to be connected as part
of the measurement solution, as well as more comprehensive and
clearer data logging. Indigo500 brings unprecedented possibilities to
traditional industrial measurement, enabling the utilization of several
simultaneously monitored variables in an easy way.
Industrial Measurements business area completed the certification
work for the HMT370EX humidity and temperature transmitter
intended for hazardous areas up to zone 0 and 20 by adding national
approvals to Canada (CSA) and Great Britain (UKEX). In addition, the
business area launched the T-only version for customers who only
need temperature measurement.
Moreover, Industrial Measurements business area further developed
the user experience of the OPT100 multi-gas analyzer by introducing
new features for data transmission of measurements, as well as by
adding an alternative power supply to the device.
Weather and Environment business area’s strategy is to secure
leadership in flagship markets, to expand in growth and emerging
markets to become market leader in selected markets, and to grow
recurring revenue. In 2022, Weather and Environment business area’s
flagship business’ net sales grew in line with expectations, although
OUR BUSINESS SUSTAINABLE BUSINESS PRACTICESCREATING VALUE GOVERNANCE FINANCIALS
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101
it was lacking orders for new large weather infrastructure projects. In
addition, profitability improvement was delayed due to additional costs
from component spot purchases. Growth business exceeded clearly its
net sales growth target and succeeded especially in renewable energy
market segment. Volume growth also led to improved profitability.
Emerging business reached expected strong double-digit growth and
the business improved its gross margin significantly. Acquisition of
AerisWeather had an important role in achieving these results.
Weather and Environment business area launched C-band weather
radar with solid-state power amplifier technology to enable weather
detection across large areas with unprecedented longevity. Combined
with Vaisala’s industry-leading data processing, the new SSPA
C-band weather radar excels at delivering high-resolution weather
information that differentiates between snow, hail, sleet, graupel,
and rain. When paired with the Vaisala X-band radar, which provides
unparalleled short-range coverage, decision-makers receive the most
comprehensive intelligence in the industry.
Weather and Environment business area also launched WindCube
Scan with new features including a more robust exterior, new scanning
head, and enhanced laser design to allow for an operationally
consistent range of up to 10 kilometers and more. The new solution
has numerous benefits including enhanced atmospheric measurements
used in meteorological forecasting, windshear assessment to mitigate
wind hazards for airports, and simplicity, flexibility, and data accuracy
at any stage of a wind energy project including off-shore wind.
Weather and Environment business area renamed its weather
and environmental data offering to Vaisala Xweather. Xweather is a
suite of data and solution services offered as subscriptions providing
real-time and hyperlocal weather and environmental data. As part of
the Xweather service suite, Weather and Environment business area
launched several new solutions:
• Wx Horizon with Vaisala Cast Sensors. These solutions deliver
hyperlocal road weather forecasts that are automatically enhanced
using local observation.
• MapsGL, which visualizes global weather and geospatial data
as never before with new, enhanced and customizable mapping
features.
• Hyperlocal air quality forecast, which connects to local air quality
observations, for proactive air quality management in cities.
Vaisala Operations manufacturers products for both business areas
and develops operational excellence in high mix low volume supply
chain through Vaisala Production System. Strategic programs are
enabling Vaisala’s growth, early involvement to product creation, as
well as deploying automation through data-focused smart factory. In
2022, Operations maintained high on-time delivery despite challenging
component availability situation. Capacity expansion focused on
high-volume products and sensor factory. 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
processes and ERP (Enterprise Resource Planning). Implementation
of CPQ (Configure, Price and Quote) was finalized in both business
areas. Development of new ERP solution as well as data and analytics
solutions progressed well and the go-live is expected within a year.
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.
Vaisala does not consider the long-term financial targets as market
guidance for any given year.
Recognitions for sustainability work
Vaisala was ranked 5th on the Financial Times list of European climate
leaders. The list includes European companies that achieved the
greatest reduction in their greenhouse gas (GHG) emissions between
2015 and 2020. Vaisala increased its ranking from place 14 the previous
year. Vaisala was the best ranked out of the 20 Finnish companies on
the list.
Vaisala was granted with the Carnegie Sustainability Award 2022 in
the category for small cap companies. The award acknowledges both
Vaisala’s sustainable business practices and the positive handprint of
the business.
Vaisala received an ESG Risk Rating of 9.7 and was assessed
by Sustainalytics to be at negligible risk of experiencing material
financial impacts from ESG factors. This means that, when it comes to
environmental, social, and governance (ESG) risk factors, Vaisala is a
very low-risk investment thanks to its strong ESG risk management.
Vaisala’s ESG Risk Rating places it in the 2nd percentile in the
electronics equipment industry assessed by Sustainalytics.
Group structure
Vaisala’s headquarters are located in Vantaa, Finland. On December
31, 2022, Vaisala had subsidiaries in Australia, Brazil, Canada, China,
Finland, France, Germany, India, Japan, Kenya, Korea, Malaysia, Mexico,
United Kingdom, and United States. The parent company has branches
in Argentina and Colombia.
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Board of Directors
The Annual General Meeting held on March 29, 2022, confirmed that
the number of the Board members is eight.
Members of the Board of Directors on December 31, 2022
• Ville Voipio, Chair
• Raimo Voipio, Vice Chair
• Petri Castrén
• Antti Jääskeläinen
• Petra Lundström
• Jukka Rinnevaara
• Kaarina Ståhlberg
• Tuomas Syrjänen
Leadership Team
On November 3, 2022, Vaisala appointed Heli Lindfors as Chief
Financial Officer and a member of the Vaisala Leadership Team as
Kaarina Muurinen will be retiring. Lindfors will start in her position
latest May 1, 2023, and report to President and CEO Kai Öistämö.
On December 31, 2022, Vaisala’s Leadership Team members were
• Kai Öistämö, President and CEO, Chair of the Leadership Team
• 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
employees, 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 effectiveness of risk management. The
Audit Committee reviews compliance with Risk Management Policy
and processes.
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 Leadership Team
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 2022, 42%
of the group’s sales was in EUR, 34% in USD, 11% in CNY, 5% in JPY and
3% 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
difference of EUR 2.4 (4.5) 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 effect of a 10% appreciation in all open
net currency positions against EUR on Vaisala’s result after taxes and
equity would have been EUR 0.2 (-0.4) million. Three largest foreign
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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 2022 2021
Net position Sensitivity Net position Sensitivity
USD -10.2 +/-1.0 USD -8.3 +/-0.8
CNY 4.7 +/-0.4 PLN -3.1 +/-0.3
GBP 3.0 +/-0.3 HRK -3.0 +/-0.3
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
2022, Vaisala’s interest-bearing liabilities and loans totaled to EUR 63.4
(50.2) million, of which EUR 40.1 (40.1) million were at floating rates.
EUR 10.9 (10.1) 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
sufficient level.
On December 31, 2022, Vaisala’s cash and cash equivalents
amounted to EUR 55.5 (77.9) million. Vaisala has a EUR 40.0 million
unsecured term loan which was signed on May 25, 2020. The loan
matures on May 25, 2023, and has a financial covenant (gearing),
which is tested semi-annually. On December 31, 2022, 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. The management plans to refinance the term loan
with maturity date in 2023.
In addition, Vaisala has a domestic commercial paper program
amounting to EUR 150 million, of which EUR 12.5 (0.0) million has been
withdrawn at the end of reporting period. Consequently, Vaisala had
interest-bearing liabilities totaling EUR 63.4 (50.2) million on December
31, 2022. Vaisala has no loans that would mature after five years or
more. In addition, Vaisala has a EUR 50 million unsecured revolving
credit facility, which was signed on October 5, 2018, and which was
undrawn at the end of reporting period, as year before. The committed
credit facility agreement matures on October 5, 2023, and it has no
financial covenants. The management plans to refinance the revolving
credit facility with maturity date in 2023.
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 55.5 (77.9)
million and the nominal value of derivative financial instruments to
EUR38.3 (35.2) 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 -0.6 (-0.1) million. Credit loss is recognized
once it has been officially 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 2022
Vaisala Corporation’s Annual General Meeting was held on March 29,
2022. 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, 2021.
Dividend
The Annual General Meeting decided a dividend of EUR 0.68 per share.
The record date for the dividend payment was March 31, 2022, and the
payment date was April 11, 2022.
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.
The Annual General Meeting confirmed 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
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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 People and Sustainability Committee
and any other committee established by the Board of Directors for
a term until the close of the Annual General Meeting in 2023. The
meeting fees are paid in cash. Possible travel expenses are 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 800,000 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 29, 2023.
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 1,008,487 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 plans. 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 29, 2023. The authorization for
the company's incentive program shall however be valid until March 29,
2026.
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 People and
Sustainability Committee. The Chair and all members of the Audit
Committee as well as the People and Sustainability 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, 2022.
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 differentiated 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 2022, a total of 2,384,806 series A shares with a value totaling
EUR102.5 million were traded on the Nasdaq Helsinki Ltd. During
the year, the share price decreased by 26% while OMXHCAPPI index
decreased by 16%. The closing price of the series A share on the
Nasdaq Helsinki stock exchange was EUR 39.45. Shares registered a
high of EUR 54.40 and a low of EUR 36.15. Volume-weighted average
share price was EUR43.03.
The market value of series A shares on December 31, 2022, was
EUR1,163.7 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 1,429.2 million, excluding company’s treasury shares.
Treasury shares
In March 2022, a total of 125,950 of Vaisala’s treasury shares were
conveyed without consideration to the 42 key employees participating
in Share-based incentive plan 2019–2021 under the terms and
conditions of the plan. Of these shares, 2,000 were conveyed to the
President and CEO Kai Öistämö. In addition, a total of 1,218 of Vaisala’s
treasury shares were conveyed without consideration to an employee
participating in the Share-based incentive plans 2020–2022 and
2021–2023 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 March 30, 2021.
Following this directed share issue, the number of series A treasury
shares on December 31, 2022, was 208,487, which represents 0.7% of
series A shares and 0.6% of total shares.
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Major shareholders December 31, 2022
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 105,464 1,757,760 1,863,224 5.11 21.46
Nordea Nordic Small Cap Fund 1,700,710 0 1,700,710 4.67 1.03
Weisell-säätiö 1,440,000 0 1,440,000 3,95 0,88
Mandatum Life Insurance Company Ltd. 1,098,673 274,800 1,373,473 3.77 4.01
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* 515,360 404,296 919,656 2.52 5.23
Ilmarinen Mutual Pension Insurance Company 889,275 0 889,275 2.44 0.54
Voipio Tauno 568,520 269,304 837,824 2,30 3,62
Voipio Lauri 561,692 108,376 670,068 1.84 1.66
Voipio Riitta 561,692 108,376 670,068 1.84 1.66
Voipio Ville 397,642 119,712 517,354 1.42 1.70
Voipio Mari 414,486 96,712 511,198 1.40 1.43
Voipio Timo 391,484 119,712 511,196 1.40 1.70
Total 12,495,558 5,422,654 17,918,212 49.18 73.60
Nominee registered shares** 7,696,565 0 7,696,565 21.12 4.68
* In addition to direct share ownership, Raimo Voipio’s controlled organization Imar Oy owned 56,000 series A shares.
** Includes 1,180,376 series A shares owned by Lannebo Fonder, which represented 3.24% of all shares and 0.72% of all votes (according to Lannebo’s notification).
Ownership structure (series A and K shares)
December 31, 2022
Shares % of shares
Households 14,683,518 40.30
Nominee registered and outside
Finland 7,747,078 21.26
Private companies 4,696,386 12.89
Financial and insurance institutions 4,246,277 11.65
Non-profit organizations 3,680,756 10.10
Public sector organizations 1,382,713 3.80
Total 36,436,728 100.00
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Ownership distribution (series A and K shares)
December 31, 2022
Share-
holders
% of share
-
holders Shares
% of
shares
1–100 8,123 58.89 292,469 0.80
101–500 3,696 26.79 977,074 2.68
501–1,000 974 7.06 731,775 2.00
1,001–5,000 773 5.60 1,658,380 4.55
5,001–10,000 97 0.70 670,583 1.84
10,001–50,000 80 0.58 1,700,234 4.67
50,001–100,000 18 0.13 1,197,329 3.29
100,001–500,000 16 0.12 3,625,510 9.95
500,001– 17 0.12 25,583,374 70.21
Total 13,794 100.00 36,436,728 100.00
Nominee registered 9
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 Leadership Team
On December 31, 2022, the Board of Directors held and controlled
992,647 (989,565) 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 524,008
(551,008). Total votes attached to the series A and K shares held and
controlled by the Board were 11,427,807 (12,009,725), which accounted
for 7.0 (7.3) % of the total votes of all shares.
On December 31, 2022, Kai Öistämö, the President and CEO, held
and controlled 6,000 (4,000) series A shares but no series K shares.
Other Leadership Team members held and controlled 166,768 (118,018)
series A shares but no series K shares.
Corporate Governance Statement includes more details on the
shareholdings of the Board of Directors and the Leadership Team.
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 USD 25,000 to the university
for three years.
In January 2022, Vaisala donated USD 250,000 to the Community
Foundation of Boulder County Wildfire Fund to support the
community and assist those impacted in wildfires.
In March 2022, Vaisala donated EUR 100,000 to humanitarian aid in
Ukraine. The donation was made through Finnish Red Cross.
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 part of the Annual Report
as well as a separate report on the company’s website at vaisala.com/
investors.
Near-term risks and uncertainties
The war in Ukraine will affect economic situation especially in Europe
and increase risk of achieving Vaisala’s financial targets. COVID-19
pandemic’s impact on Vaisala’s business is depending on development
of possible new virus variants and regional outbreaks such as in China.
Vaisala’s delivery capability may deteriorate due to disruptions in
suppliers’ operations, Vaisala’s production or project delivery operation,
or disruptions in incoming and/or outgoing logistics. Industrial actions
in Finland may cause disruptions in Vaisala’s operations and deteriorate
Vaisala’s delivery capability. Component shortage may cause delays or
interruptions in deliveries or generate additional material costs. Cyber
risk and downtime of IT systems may impact operations and delivery
capability.
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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. 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.
Further information about risk management and risks are available
on Annual Report’s Corporate Governance/Risk management section
and on the company’s website at vaisala.com.
Market development and business outlook for 2023
Markets for high-end industrial instruments, life science, power and
energy, and liquid measurements are expected to grow.
Markets for renewable energy as well as roads and automotive are
expected to grow. Market for aviation is expected to be stable or to
grow. Market for meteorology is expected to be stable.
The war in Ukraine and sanctions against Russia are not expected to
have direct material impact on Vaisala’s operations, financial position
or cash flow. The uncertainty in the business environment is high due
to weak economic outlook and high inflation and continuing COVID-
19 pandemic especially in China. The availability of components is
expected to normalize during the first half of 2023. Vaisala estimates
that its full-year 2023 net sales will be in the range of EUR 530–570
million and its operating result (EBIT) will be in the range of EUR 70–85
million.
Board of Directors’ proposal for dividend
The parent company’s distributable earnings amount to EUR
167,443,963.45 of which the result for the period is EUR 26,965,941.48.
The Board of Directors proposes to the Annual General Meeting that
a dividend of EUR 0.72 per share be paid out of distributable earnings
totaling EUR 26.1 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 2023
Vaisala Corporation’s Annual General Meeting will be held on Tuesday
March 28, 2023, at 2:00 p.m. Finnish time at Vaisala Corporation’s head
office, Vanha Nurmijärventie 21, 01670 Vantaa, Finland. The reception
of persons who have registered for the meeting will commence at 1:00
p.m. Shareholders can follow the meeting via live webcast at Vaisala
website vaisala.com/agm. Shareholders following the webcast are
not deemed to attend the Annual General Meeting so they cannot ask
questions or vote online during the webcast. A shareholder, who wants
to participate in the General Meeting, shall register for the meeting
no later than on March 23, 2023, at 4.00 p.m. by giving prior notice of
participation. Such notice can be given on the company’s website at
vaisala.com/agm or by email to agm@vaisala.com.
Vantaa, February 15, 2023
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 differ 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.
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CONSOLIDATED FINANCIAL
STATEMENTS 109
Consolidated statement of income 109
Consolidated statement of
comprehensive income 109
Consolidated statement of
financial position 110
Consolidated cash flow statement 112
Consolidated statement of
changes in equity 113
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 114
Financial development
1. Reportable segments 117
2. Geographical segments 119
3. Revenue from contracts
with customers 119
4. Other operating income
and expenses 120
5. Personnel expenses and
number of personnel 121
6. Pension obligations 121
7. Share-based payments 123
8. Research and development
expenditure 124
9. Financial income and expenses 124
10. Income taxes 125
11. Earnings per share 129
Net working capital
12. Trade receivables and
other receivables 129
13. Inventories 130
14. Trade payables and
other liabilities 131
15. Provisions 131
Intangible and tangible assets
16. Intangible and tangible assets 132
17. Leases 138
Capital structure
18. Shareholders’ equity 140
19. Financial risk management 142
20. Non-current receivables 143
21. Financial assets and liabilities 143
22. Interest-bearing liabilities
and other adjustments in
cash flow statement 146
23. Cash and cash equivalents 146
24. Contingent liabilities and
pledges given 147
Consolidation
25. Business combinations 147
26. Subsidiaries 148
27. Associated company 149
Other notes
28. Related party transactions 150
29. Auditor’s fees 152
30. Application of new and revised
standards and interpretations in
issue but not yet effective 152
PARENT COMPANY FINANCIAL
STATEMENTS 155
Parent company income statement 155
Parent company balance sheet 156
Parent company cash flow
statement 158
NOTES TO THE PARENT COMPANY
FINANCIAL STATEMENTS 159
1. Accounting principles 159
2. Net sales 160
3. Other operating income 161
4. Personnel expenses and
number of personnel 162
5. Depreciation, amortization and
impairment 163
6. Financial income and expenses 163
7. Direct taxes 163
8. Non-current assets 164
9. Other receivables 167
10. Deferred assets 167
11. Deferred tax assets and
liabilities 168
12. Provisions 168
13. Shareholders’ equity 168
Financial statements 2022
14. Other non-current and current
liabilities 169
15. Loans from financial
institutions 169
16. Accrued expenses and
deferred income 170
17. Receivables and liabilities
from other companies in
Vaisala group 170
18. Contingent liabilities and
pledges given 170
19. Auditor’s fees 170
SIGNING OF THE BOARD OF
DIRECTOR’S REPORT AND
FINANCIAL STATEMENTS 171
AUDITOR’S REPORT 172
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Consolidated statement of income
EUR million Note
Jan 1–Dec 31,
2022
Jan 1–Dec 31,
2021
Net sales 1, 2, 3 514.2 437.9
Cost of goods sold 5, 13, 16 -232.2 -196.0
Gross profit 282.0 241.8
Sales, marketing and administrative costs 5, 7, 16 -157.3 -131.2
Research and development costs 5, 7, 8, 16 -62.4 -55.3
Other operating income and expenses 4 0.3 -5.2
Operating result 62.5 50.1
Share of result in associated company 27 0.2 0.2
Financial income and expenses 9 -3.1 -2.1
Result before taxes 59.6 48.3
Income taxes 10 -14.5 -8.9
Result for the financial year 45.0 39.5
Attributable to
Owners of the parent company 45.0 39.0
Non-controlling interests 0.0 0.5
Result for the financial year 45.0 39.5
Earnings per share for result attributable to the equity holders
of the parent company 11
Earnings per share, EUR 1.24 1.08
Diluted earnings per share, EUR 1.24 1.07
Consolidated statement of comprehensive income
EUR million Note
Jan 1–Dec 31,
2022
Jan 1–Dec 31,
2021
Items that will not be reclassified to profit or loss (net of taxes)
Actuarial profit (loss) on post-employment benefits 6 -0.2 -0.1
Total -0.2 -0.1
Items that may be reclassified subsequently to profit or loss
Translation differences 2.4 4.5
Total 2.4 4.5
Total other comprehensive income 2.2 4.3
Comprehensive income for the financial year 47.3 43.8
Attributable to
Owners of the parent company 47.3 43.4
Non-controlling interests 0.0 0.5
Comprehensive income for the financial year 47.3 43.8
The notes are an essential part of the financial statements.
Consolidated financial statements
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Consolidated statement of financial position
EUR million Note Dec 31, 2022 Dec 31, 2021
Assets
Non-current assets
Intangible assets 16 71.3 56.9
Property, plant and equipment 16 96.0 94.1
Right-of-use assets 17 11.9 11.1
Investments in shares 0.1 0.1
Investment in associated company 27 1.4 1.3
Non-current receivables 20 1.0 0.9
Deferred tax assets 10 9.5 9.2
Total non-current assets 191.1 173.5
Current assets
Inventories 13 61.6 49.9
Trade and other receivables 12 101.7 73.5
Contract assets and other accrued revenue 3 26.2 28.1
Income tax receivables 3.1 5.1
Cash and cash equivalents 23 55.5 77.9
Total current assets 248.1 234.5
Total assets 439.2 408.0
EUR million Note Dec 31, 2022 Dec 31, 2021
Equity and liabilities
Equity 18
Share capital 7.7 7.7
Other reserves 3.5 7.0
Translation differences 4.1 1.7
Treasury shares -3.3 -4.6
Retained earnings 238.7 218.0
Total equity attributable to owners of parent company 250.7 229.6
Non-controlling interests 0.0 0.7
Total equity 250.7 230.3
Non-current liabilities
Interest-bearing borrowings 21 0.0 40.0
Interest-bearing lease liabilities 17 8.3 7.7
Post-employment benefits 6 2.7 2.7
Deferred tax liabilities 10 4.3 6.7
Provisions 15 0.3 0.3
Other non-current liabilities 21 2.1 1.3
Total non-current liabilities 17.6 58.6
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EUR million Note Dec 31, 2022 Dec 31, 2021
Current liabilities
Interest-bearing borrowings 21 52.5 0.1
Interest-bearing lease liabilities 17 2.7 2.4
Trade and other payables 14 74.0 83.9
Contract liabilities and other deferred revenue 3 37.1 29.0
Income tax liabilities 1.8 1.8
Provisions 15 2.8 2.0
Total current liabilities 170.8 119.1
Total liabilities 188.5 177.7
Total equity and liabilities 439.2 408.0
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,
2022
Jan 1–Dec 31,
2021
Cash flow from operating activities
Result for the financial period 45.0 39.5
Depreciation, amortization and impairment 16 23.6 21.6
Financial income and expenses 9 3.1 2.1
Gains and losses on sale of intangible assets and property,
plant and equipment 4 0.0 0.0
Share of result in associated company 27 -0.2 -0.2
Income taxes 10 14.5 8.9
Other adjustments 22 0.3 3.1
Inventories, increase (-) / decrease (+) 13 -11.2 -6.7
Non-interest-bearing receivables, increase (-) / decrease (+) 12 -26.0 -11.5
Non-interest-bearing liabilities, increase (+) / decrease (-) 14 -0.8 34.7
Changes in working capital -38.0 16.6
Financial items paid/received 9 -4.9 -0.2
Income taxes paid 10 -13.6 -11.2
Cash flow from operating activities 29.8 80.0
Cash flow from investing activities
Acquisition of subsidiaries, net of cash acquired 25 -23.1 -
Capital expenditure on intangible assets and property,
plant and equipment
16 -13.7 -19.2
Proceeds from sale of intangible assets and property,
plant and equipment 4 0.0 0.1
Cash flow from investing activities -36.8 -19.1
EUR million Note
Jan 1–Dec 31,
2022
Jan 1–Dec 31,
2021
Cash flow from financing activities
Dividends paid 18 -24.6 -22.0
Change in loan receivables -0.1 -0.0
Proceeds from borrowings 21 114.9 45.0
Repayment of borrowings 21 -102.4 -49.9
Principal payments of lease liabilities 17 -2.9 -3.1
Cash flow from financing activities -15.1 -30.0
Change in cash and cash equivalents, increase (+) / decrease (-) -22.1 30.8
Cash and cash equivalents at the beginning of the financial year 77.9 45.4
Change in cash and cash equivalents -22.1 30.8
Effect from changes in exchange rates -0.3 1.7
Cash and cash equivalents at the end of the financial year 23 55.5 77.9
The notes are an essential part of the financial statements.
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Consolidated statement of changes in equity
EUR million Note Share capital Other reserves
Translation
differences Treasury shares
Retained
earnings
Equity
attributable to
owners of the
parent company
Non-controlling
interests Total
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
Result for the financial year 18 45.0 45.0 0.0 45.0
Other comprehensive income 18 -0.0 2.4 -0.2 2.2 2.2
Dividend distribution 18 -24.6 -24.6 -24.6
Share-based payments 7, 18 -3.4 1.4 -2.1 -2.1
Changes in non-controlling interests that did
not result in changes in control 0.7 0.7 -0.7
Equity at Dec 31, 2022 7.7 3.5 4.1 -3.3 238.7 250.7 0.0 250.7
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Basic information
Vaisala is a global leader in weather, environmental, and industrial measurement. With over 85 years of
experience, 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 15, 2023. 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 office 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, 2022.
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 affect 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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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 differences resulting
from the settlement of monetary items or from the presentation of items in the financial statements
at different 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 different exchange rates in the consolidated statements
of income and in the consolidated statement of financial position, results in a translation difference,
which is recognized in other comprehensive income. Translation differences 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 difference 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
2022 2021 Dec 31, 2022 Dec 31, 2021
USD 1.0555 1.1894 1.0666 1.1326
CNY 7.0607 7.6758 7.3582 7.1947
JPY 137.28 130.00 140.66 130.38
GBP 0.8509 0.8633 0.8869 0.8403
Climate-related matters
Climate-related matters have been considered from the point of view of both opportunities and risks.
Climate change provides Vaisala with business opportunities. Vaisala’s solutions help our customers to
adapt to, mitigate and increase understanding of the climate change. By utilizing the data provided by
Vaisala’s measurement instruments, our industrial customers can increase their resource efficiency and
optimize their processes in order to reduce energy consumption, emissions and loss. With environmental
observations, forecasting, and early warning systems, societies and institutions can better prepare for the
consequences of climate change. With solutions related to renewable energy Vaisala helps to mitigate
climate change.
In 2022, Vaisala committed to setting a near-term science-based target aligned with the requirements
of the Science-Based Targets initiative (SBTi). Vaisala will formulate the targets and an emissions reduction
roadmap during 2023 and apply for the official SBTi approval by 2024.
Climate change has been assessed to increase the likelihood of risks related to natural disasters,
epidemics (other than COVID-19), civil unrest and terrorism (hazard risks) and business continuity risks
related to suppliers (operational risks).
Above mentioned have been taken into account in the preparation of the financial statements. Identified
risks and targets do not have a material impact on the financial statement items requiring management
judgment and estimates. Vaisala has not yet identified significant investment needs related to risks and
targets of climate change.
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New and amended IFRS standards that are effective for the year 2022
Vaisala has adopted the following new or revised IFRS standards from January 1, 2022. Their adoption has
not had no material impact on the disclosures or on the amounts reported in these financial statements.
Amendments to IFRS 3 Reference to the Conceptual Framework
The group has adopted the amendments to IFRS 3 Business Combinations for the first time in the current
financial year. 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 Provisions, Contingent Liabilities and Contingent Assets, 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.
Amendments to IAS 16 Property, Plant and Equipment—Proceeds before Intended Use
The group has adopted the amendments to IAS 16 Property, Plant and Equipment for the first time in the
current financial year. 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 recognises 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.
Amendments to IAS 37 Onerous Contracts—Cost of Fulfilling a Contract
The group has adopted the amendments to IAS 37 for the first time in the current financial year. 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 labour 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).
Annual Improvements to IFRS Accounting Standards 2018–2020 Cycle: amendments to IFRS 1, IFRS 9,
IFRS 16 ja IAS 41
The group has adopted the amendments included in the Annual Improvements to IFRS Accounting
Standards 2018–2020 Cycle for the first time in the current financial year. The Annual Improvements
include amendments to four standards.
The amendments to IFRS 1 First-time Adoption of International Financial Reporting Standards and to
IAS 41 Agriculture has no impact to the consolidated financial statements.
IFRS 9 Financial Instruments
The amendment clarifies that in applying the "10 per cent" test to assess whether to derecognise 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.
IFRS 16 Leases
The amendment removes the illustration of the reimbursement of leasehold improvements.
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 differ 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)
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Financial development
1. REPORTABLE SEGMENTS
Accounting principles
Vaisala has two operating and reportable segments, which are based on the type of business operations:
Industrial Measurements business area and Weather and Environment business area. Operating segments
have not been aggregated to build the reportable segments.
Operating segments are based on the management reports reviewed by Vaisala Leadership Team,
which is the chief operating decision-maker. Vaisala Leadership Team is responsible for allocating
resources and assessing performance of the operating segments. Vaisala Leadership Team assesses the
performance of the operating segment based on the operating result. The reporting provided to Vaisala
Leadership Team 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.
Industrial Measurements business area serves a wide range of industrial customers. It offers a broad
range of accurate and reliable measurement instruments, continuous monitoring systems, and services
that help the customers optimize processes, improve efficiency, 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.
Weather and Environment business area serves selected weather-dependent customers where
accurate, real-time, uninterrupted, and reliable weather data is essential to run efficient operations. Main
markets are meteorology, aviation, ground transportation and renewable energy.
Revenue recognition principles are presented in note 3, Revenue from contracts with customers and 17,
Leases.
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 different groups of receivables (estimate)
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Reportable segments
2022
EUR million
Industrial
Measurements
Weather and
Environment
Other
operations Vaisala total
Products 208.1 167.4 375.5
Projects 73.5 73.5
Services 17.5 46.0 63.5
Lease income 1.7 1.7
Net sales 225.6 288.6 514.2
Performance obligations satisfied
at a point in time 222.2 185.9 408.1
Performance obligations satisfied
over time 3.3 101.1 104.4
Lease income recognized
on a straight-line basis 1.7 1.7
Net sales 225.6 288.6 514.2
Operating result 51.5 11.1 -0.1 62.5
Share of result in associated company 0.2
Financial income and expenses -3.1
Result before taxes 59.6
Income taxes -14.5
Result for the financial year 45.0
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
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2. GEOGRAPHICAL SEGMENTS
Vaisala’s reportable segments operate in geographical areas which are Americas, APAC and EMEA.
1)
Geographical segments
2022
EUR million
Net sales, by
destination
country
2)
Net sales,
by location
country
3)
Non-current
assets
3)
Americas 191.2 176.3 47.8
of which United States 155.3 167.3 47. 5
APAC 160.3 103.2 2.9
EMEA 162.8 435.5 130.9
of which Finland 9.1 343.3 118.3
Eliminations -200.8
Total 514.2 514.2 181.7
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
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 differences 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.
One project consists of one or multiple performance obligations 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-off 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-off 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 effects 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, 2022 Dec 31, 2021
Trade receivables 87.6 59.2
Contract assets 26.2 28.1
Contract liabilities 36.6 28.4
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, products and services 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 2022, Vaisala recognized EUR 15 (13) million revenue that was included in the contract liability balance
at the beginning of the financial year.
At the end of financial year 2022, the order book was EUR 181.5 (160.0) million, of which the
performance obligations that were unsatisfied or partially unsatisfied amounted to EUR 180.4 (159.4)
million and the amount related to lease income was EUR 1.1 (0.6) million. Of the performance obligations
that were unsatisfied or partially unsatisfied EUR 141.9 (124.7) million is estimated to be recognized as
revenue in 2023 and EUR 38.5 (34.7) million is estimated to be recognized later. The whole order book
related to lease agreements is estimated to be recognized as revenue in 2023.
4. OTHER OPERATING INCOME AND EXPENSES
Other operating income
EUR million 2022 2021
Indemnities 0.0 0.1
Gain on the disposal of tangible assets 0.0 -
Other 0.2 0.2
Total 0.3 0.3
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Other operating expenses
EUR million 2022 2021
Loss on items related to business combinations - 4.5
Restructuring expenses - 0.4
Loss on the disposal of tangible assets 0.0 0.0
Other - 0.6
Total 0.0 5.5
Other operating income and expenses, net 0.3 -5.2
5. PERSONNEL EXPENSES AND NUMBER OF PERSONNEL
Personnel expenses
EUR million 2022 2021
Salaries 154.3 141.1
Share-based payments 4.0 5.0
Social costs 13.0 11.4
Pensions
Defined benefit plans 0.1 0.1
Defined contribution plans 19.0 16.6
Total 190.4 174.3
Personnel expenses by function
EUR million 2022 2021
Procurement and production 52.0 49.7
Sales, marketing and administration 82.0 74.3
Research and development 56.5 50.2
Total 190.4 174.3
Personnel, average by business area
Persons 2022 2021
Industrial Measurements 548 486
Weather and Environment 821 780
Other operations 772 701
Total 2,141 1,967
Personnel, average by geographical area
Persons 2022 2021
Americas 332 284
APAC 168 165
EMEA (excluding Finland) 240 231
Finland 1,401 1,287
Total 2,141 1,967
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 2022 2021
Fair value of funded obligations 3.9 4.6
Fair value of assets -2.9 -3.8
Net liability in the statement of financial position at Dec 31 1.0 0.8
Post-employment benefits totaled EUR 2.7 million in the balance sheet as of December 31, 2022. The
amount includes the defined benefit plan recognized in the parent company (EUR 1.0 million) and pension
obligations recognized in other group companies (EUR 1.8 million).
Amounts recognized in the statement of income and the statement of other comprehensive income
EUR million 2022 2021
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 0.3 0.2
Total recognized in the statement of income and
the statement of other comprehensive income
0.3 0.2
The actuarial gains and losses in the above table are excluding the impact of deferred taxes. In the
consolidated statement of comprehensive income, the actuarial gains and losses include the impact of
deferred taxes.
Pension costs in the statement of income have been recognized in sales, marketing and administrative
costs.
Present value of obligation
EUR million 2022 2021
Changes in the present value of obligation
Present value of obligation Jan 1 4.6 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 -0.7 0.2
Experience adjustment 0.3 -0.1
Benefits paid -0.4 -0.4
Present value of obligation Dec 31 3.9 4.6
Changes in the fair value of plan assets
EUR million 2022 2021
Fair value of plan assets Jan 1 3.8 4.4
Interest income on assets 0.0 0.0
Remeasurements
Net return on plan assets -0.6 -0.1
Benefits paid -0.4 -0.4
Contributions 0.1 -0.1
Fair value of plan assets Dec 31 2.9 3.8
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Changes of liabilities presented in the statement of financial position
EUR million 2022 2021
Liabilities Jan 1 0.8 0.6
Expense (+) / income (-) recognized in statement of income 0.0 0.0
Total recognized in other comprehensive income 0.3 0.2
Contributions paid -0.1 0.1
Liabilities Dec 31 1.0 0.8
Actuarial assumptions used
2022 2021
Discount rate, % 3.16 0.87
Rate of salary increase, % 3.51 2.90
Rate of inflation, % 2.55 1.94
Annual adjustments to pensions, % 2.79 2.18
Sensitivity of the net liability changes in the principal assumptions
Assumption
Change in
assumption
Increase in
assumption
Decrease in
assumption
Discount rate 0.25% 2.14% decrease 2.22% increase
Salary increase rate 0.25% 0.00% increase 0.00% decrease
Pension increase rate 0.25% 8.91% increase 8.72% decrease
Assumption Increase by one year Decrease by one year
Life expectancy at birth 4.96% increase 4.72% 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 and additions to equity during the vesting period. The costs are based in regards to
market conditions and other than market conditions on an estimate of the number of shares to be paid
at the end of vesting period. Other than market conditions, on which estimates are based, are updated
whenever changes occur and the effect of changes in assumptions are recognized in the statement of
income. 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.
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
2018 performance share plan was based on the group’s profitability in respective calendar year. From 2019
onwards the performance criteria of the performance share plans are based on the development of the
total shareholder return (TSR) and the group’s profitability during the three-year plan period. Matching
share plan consists of matching periods as decided by the Boards of Directors and the participants are
given an opportunity to receive matching shares for the predetermined personal investment in Vaisala’s
series A shares. Restricted share plan consists of vesting periods as decided by the Board of Directors
and the participants are given an opportunity to receive a pre-determined number of restricted shares.
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 Leadership Team retains
their ownership of shares received under this plan until the value of their ownership in Vaisala corresponds
to at least their annual gross base salary.
On February 7, 2018, the Board of Directors resolved a performance 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 performance share-based incentive plan
2019–2021. On March 3, 2022 the reward corresponding to 251,900 series A shares, 100% of the maximum,
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was paid to 42 key employees. Of these shares, 2,000 were conveyed to the President and CEO Kai
Öistämö. In addition, on March 3, 2022, a total of 1,218 series A shares were conveyed without consideration
to an employee participating in the performance share-based incentive plans 2020–2022 and 2021–2023.
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 performance 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 performance 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.
On February 17, 2022, the Board of Directors resolved for three share-based incentive plans.
Performance share-based incentive plan was resolved for the period 2022–2024 for approximately
40 key employees. The reward will be paid in spring 2025. The maximum amount of this plan originally
corresponded to 161,000 series A shares. The expenses of this plan are accrued from May 2022 to March
2025. Closing price of Vaisala’s series A share was EUR 41.45 on the grant date of the incentive plan.
Matching share-based incentive plan was resolved for the period 2022–2026 and shares are earned in
matching periods lasting for 12 to 36 months. Restricted share-based incentive plan was resolved for the
period 2022–2026 and shares are earned in vesting periods lasting for 12 to 36 months. The maximum
amount of matching and restricted share-based incentive plans originally corresponded to 100,000
series A shares. The expenses of the matching share plan are accrued from May 2022 to March 2025.
The expenses of the restricted share plan are accrued depending on the timing and length of the vesting
period(s).
In 2022, expenses related to share-based incentive plans totaled EUR 4.0 (5.0) million.
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 62.4 (55.3) million in 2022.
9. FINANCIAL INCOME AND EXPENSES
Accounting principles
Exchange rate differences resulting from settlement of monetary items or from presentation of items in
the financial statements at different 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 2022 2021
Interest and financial income 0.3 0.0
Gains arising from changes in fair values of derivative financial contracts 2.6 1.1
Foreign exchange gains 4.8 4.0
Total 7.7 5.1
Financial expenses
EUR million 2022 2021
Interest expenses 0.7 0.6
Interest expenses on lease liabilities 0.3 0.4
Other financial expenses 0.4 0.4
Losses arising from changes in fair values of derivative financial contracts 3.8 3.5
Foreign exchange losses 5.5 2.4
Total 10.8 7.2
Financial income and expenses, net -3.1 -2.1
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 differences 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 differences arise from depreciation and
amortization, accruals for share-based incentive plans and tax losses carried forward. Other temporary
timing differences 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 effects 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 different 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 sufficient taxable temporary differences or there is convincing
evidence that sufficient 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 and c) available tax planning opportunities.
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Income taxes
EUR million 2022 2021
Tax based on taxable income for the financial year 14.2 10.3
Taxes from previous financial years 1.7 0.2
Change in deferred tax assets and liabilities -1.5 -1.6
Total 14.5 8.9
Reconciliation statement between the statement of income tax item and taxes calculated at the tax rate
of the group country of domicile
EUR million 2022 2021
Result before taxes 59.6 48.3
Taxes calculated at the Finnish tax rate 11.9 9.7
Effect of foreign subsidiaries’ tax rates 2.1 2.2
Non-deductible expenses 1.2 1.0
Tax free income and tax incentives -0.9 -1.5
Taxes from previous financial years 1.7 0.2
Other direct taxes 0.0 0.0
Reassessment of deferred tax assets 0.0 -1.8
Other -1.5 -1.0
Total 14.5 8.9
Effective tax rate 24.4% 18.4%
Vaisala has not any carry forward tax losses for which deferred tax assets have not been recognized as of
December 31, 2022 and December 31, 2021.
Deferred taxes in the statement of financial position
EUR million 2022 2021
Deferred tax assets 9.5 9.2
Deferred tax liabilities -4.3 -6.7
Total 5.2 2.5
Gross change in deferred taxes recognized in the statement of financial position
EUR million 2022 2021
Deferred taxes Jan 1 2.5 -0.4
Items recognized in the statement of income 1.5 1.7
Effect of business combinations 2.1 -
Translation differences -0.2 -0.1
Items recognized in the statement of comprehensive income -0.7 1.3
Deferred taxes Dec 31 5.2 2.5
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Changes in deferred taxes during 2022
EUR million Jan 1, 2022
Recognized in the
statement of income
Translation
differences
Recognized in
the statement of
comprehensive income
Effect
of business
combinations Dec 31, 2022
Deferred tax assets
Internal margin of inventories, intangible assets and
property, plant and equipment 1.4 0.3 0.0 0.0 1.7
Employee benefits and share-based payments 3.8 0.0 -0.1 -0.7 3.0
Unused tax losses 3.7 -1.6 -0.1 0.0 2.0
Timing difference of amortization on intangible assets
and depreciation on property, plant and equipment 0.7 -0.1 0.0 0.0 2.1 2.7
Other temporary timing differences 2.4 1.9 0.1 0.0 4.4
Netted against deferred tax liabilities -2.8 -1.4 -4.2
Total 9.2 -0.9 -0.2 -0.7 2.1 9.5
Deferred tax liabilities
Timing difference of amortization on intangible assets
and depreciation on property, plant and equipment 9.1 -1.0 0.1 0.0 8.2
Other 0.3 0.0 0.0 0.0 0.3
Netted against deferred tax assets -2.8 -1.4 -4.2
Total 6.7 -2.4 0.1 0.0 4.3
Deferred tax assets, net 2.5 1.5 -0.2 -0.7 2.1 5.2
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Changes in deferred taxes during 2021
EUR million Jan 1, 2021 Reclassification
Recognized in the
statement of income
Translation
differences
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 difference 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 differences 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 difference 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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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 effect of potential shares from the share-based payments.
Earnings per share
2022 2021
Result attributable to the shareholders of the parent company, EUR million 45.0 39.0
Weighted average number of shares outstanding, 1,000 pcs 36,207 36,082
Effect of share-based incentive plans, 1,000 pcs 160 272
Weighted average diluted number of shares, 1,000 pcs 36,367 36,354
Earnings per share, EUR 1.24 1.08
Diluted earnings per share, EUR 1.24 1.07
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 2022 2021
Trade receivables*
)
88.1 59.2
Advances paid 1.3 1.6
Value-added tax receivables 3.3 4.3
Other receivables 2.2 2.2
Derivative financial contracts 0.9 0.0
Other prepaid expenses and accrued income 5.7 6.2
Total 101.7 73.5
*
)
In 2022, trade receivables included EUR 0.6 (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, 2022
EUR million
Trade receivables,
gross amount
Credit loss
allowance
Trade receivables,
net amount
Current 58.4 0.2 58.3
Due less than 90 days 21.5 0.1 21.4
Due 91–180 days 2.2 0.3 1.9
Due over 180 days 1.4 0.9 0.5
Credit loss allowance other than
those based on age analysis 6.6 0.6 6.0
Total 90.1 2.0 88.1
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Expected credit losses of trade receivables, Dec 31, 2021
EUR million
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
Reconciliation of credit loss allowance of trade receivables
EUR million 2022 2021
Opening balance for credit loss allowance on Jan 1 1.5 1.7
Change in credit loss allowance recognized in
profit or loss during the financial year, net 0.6 0.1
Receivables recognized as final credit losses during the
financial year due to uncollectability -0.2 -0.3
Exchange rate differences 0.0 0.1
Total 2.0 1.5
Credit losses and related reversals arising from trade receivables recognized for the financial year
amounted to EUR -0.6 (-0.1) million.
Trade receivables by currency
EUR million 2022 2021
EUR 34.7 28.1
USD 30.1 17.1
GBP 5.1 3.1
JPY 5.0 4.1
AUD 0.9 0.9
CNY 6.5 2.8
CAD 2.3 1.5
PLN 2.8 0.3
Others 0.8 1.3
Total 88.1 59.2
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 raw materials, 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.
Inventories
EUR million 2022 2021
Materials, supplies and finished goods 61.6 49.9
Total 61.6 49.9
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The cost of inventories recognized in the statement of income as an expense corresponding to net sales
was EUR 143.6 (126.6) million.
Write-offs and excess and obsolescence allowances for slow moving and obsolete inventory recognized
during the financial year amounted to EUR 1.6 (1.6) million.
At the beginning of financial year 2021 Vaisala amended the accounting principles on leases to include
accounting by a lessor. Consequently, the leased assets, EUR 1.2 million, were transferred from inventory to
property, plant and equipment.
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 2022 2021
Trade payables 25.2 21.4
Personnel cost accruals 36.4 38.1
Derivative financial contracts 0.5 1.3
Other accrued expenses and deferred income 6.0 7.4
Other current liabilities 5.9 15.6
Total 74.0 83.9
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 effect 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 affected 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 2022 2021
Provisions Jan 1 0.3 0.1
Increase in provisions 0.1 0.2
Used provisions -0.1 -
Provisions Dec 31 0.3 0.3
Current provisions
EUR million 2022 2021
Provisions Jan 1 2.0 1.7
Increase in provisions 0.7 0.3
Used provisions - -0.1
Provisions Dec 31 2.8 2.0
In 2022 and 2021 provisions related to warranties 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 difference 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 5–8 years
Customer-related intangible assets 1–10 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 different 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 effect
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 differ 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, 2022 29.6 39.1 14.1 32.4 0.3 115.6
Translation difference 1.1 0.1 0.1 0.4 0.0 1.8
Increases 0.2 0.2 0.4
Business combinations 15.9 3.0 2.5 21.4
Decreases -0.0 -5.0 -5.0
Transfers between items 0.1 -0.1 -0.0
Acquisition cost Dec 31, 2022 46.6 42.3 16.8 28.2 0.4 134.2
Accumulated amortization and impairment Jan 1, 2022 17.5 10.1 31.0 58.7
Translation difference -0.0 0.4 0.4
Accumulated amortization of decreases and transfers -0.0 -5.0 -5.0
Amortization for the financial year 6.0 2.2 0.5 8.7
Impairment for the financial year 0.1 0.1
Accumulated amortization and impairment Dec 31, 2022 23.6 12.3 27.1 62.9
Carrying amount Dec 31, 2022 46.6 18.7 4.5 1.1 0.4 71.3
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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 difference 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 difference 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
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 203 million. Weather and Environment business area sales are expected to grow
in average 4% next three years. Terminal growth rate is 2% and Weighted Average Cost of Capital is 10.9%.
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, 2022 4.7 99.1 83.6 1.7 0.1 9.3 198.3
Translation difference 0.1 1.1 0.6 0.0 1.9
Increases 1.1 5.5 0.6 5.9 13.0
Business combinations 0.0 0.0
Decreases -3.2 -9.9 -0.3 -13.4
Transfers between items 1.1 5.2 0.0 -6.4 -0.1
Acquisition cost Dec 31, 2022 4.8 99.2 85.0 2.0 0.1 8.7 199.7
Accumulated depreciation and impairment Jan 1, 2022 46.5 57.7 0.1 104.2
Translation difference 0.2 0.5 -0.0 0.7
Accumulated depreciation of decreases and transfers -3.7 -9.4 -13.1
Business combinations 0.0 0.0
Depreciation for the financial year 4.2 7.5 11.7
Impairment for the financial year 0.0 0.1 0.0 0.2
Accumulated depreciation and impairment
Dec 31, 2022
47. 2 56.4 0.1 0.0 0.0 103.7
Carrying amount Dec 31, 2022 4.8 51.9 28.7 1.8 0.1 8.7 96.0
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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 difference 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 difference 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 0.1 104.2
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 on leases to include accounting by a lessor. Consequently, the leased assets, EUR 1.2 million, were transferred from inventory to property, plant and equipment.
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Depreciation, amortization and impairment by function
EUR million 2022 2021
Procurement and production 4.6 4.0
Sales, marketing and administration 14.7 13.7
Research and development 1.5 1.2
Total 20.7 18.9
Depreciation, amortization and impairment by asset group 2022
EUR million
Depreciation and
amortization Impairment Total
Technology-based intangible assets 6.0 6.0
Customer related intangible assets 2.2 2.2
Other intangible assets 0.5 0.1 0.6
Buildings and structures 4.2 0.0 4.2
Machinery and equipment 7.5 0.1 7. 6
Leased assets 0.0 0.0
Total 20.4 0.3 20.7
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
17. LEASES
Leases as lessee
Accounting principles
Vaisala acts as a lessee and its lease contracts consist mainly of offices, 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 effective 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 affected by, among other things, the interest accrued by
the lease liability, the leases paid, the index increases in leases and the effects 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 2022 2021
Land and waters 1.3 1.3
Buildings and structures 10.1 9.2
Machinery and equipment 0.5 0.6
Total 11.9 11.1
Additions to the right-of-use assets during the financial year 2022 were EUR 3.9 (1.1) million.
Interest-bearing lease liabilities
EUR million 2022 2021
Non-current 8.3 7.7
Current 2.7 2.4
Total
10.9
10.1
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 2022 2021
Buildings and structures 2.5 2.4
Machinery and equipment 0.4 0.4
Total
2.9
2.8
Write-downs of right-of-use assets
EUR million 2022 2021
Buildings and structures 0.1 -0.0
Total
0.1
-0.0
Other items recognized in the statement of income
EUR million 2022 2021
Interest expense on lease liabilities 0.3 0.4
The total cash outflow for leases in 2022 was EUR 3.2 (3.4) million.
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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
differences 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
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 differentiated 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, 2022 and 2021, the fully paid and registered share capital of Vaisala Corporation
amounted to EUR 7,660,807.86.
Leases as lessor
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 2022 was EUR 1.7 (2.1) million.
At the end of the financial year 2022 the undiscounted lease payments to be received were EUR 1.2
(0.4) million and will be received during the financial year 2023.
In the beginning of financial year 2021 Vaisala amended the accounting principles to include accounting
by a lessor due to the increase of lease arrangements, where Vaisala is acting as a lessor. Due to the
change an amount totaling EUR 1.2 million was transferred on January 1, 2021 from inventory to property,
plant and equipment.
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Share capital and reserves
EUR million
Number of
shares 1,000 Share capital Other reserves
Treasury
shares Total
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 difference 0.0 0.0
Dec 31, 2021 36,101 7.7 7.0 -4.6 10.0
Share-based
payments 127 -3.4 1.4 2.9
Translation
differences -0.0 -0.0
Dec 31, 2022 36,228 7.7 3.5 -3.3 13.0
Own shares held by
the company 208
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, 2022 the amount of other reserves totaled 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, 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
Distribution of treasury shares to key employees -127,168 -1.4
Treasury shares Dec 31, 2022 208,487 3.3
On December 31, 2022 the company held 208,487 (335,655) series A shares representing 0.6% (0.9) of the
total number of shares and 0.1% (0.2) of the voting rights. The consideration paid for the shares held by the
company was EUR 3.3 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 differences
Translation differences include the translation differences arising from the elimination of the acquisition
cost of non-euro area group companies and from post-acquisition equity items, and the translation
differences 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 2021 a dividend of EUR 0.68 per share was paid, totaling EUR 24.6 million.
The Board of Directors proposes to the Annual General Meeting to be held on March 28, 2023 that
a dividend of EUR 0.72 per share be paid for the financial year 2022, representing a total dividend of
EUR 26.1 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 2022, 42% of the group’s sales was in EUR,
34% in USD, 11% in CNY, 5% in JPY and 3% 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 difference
of EUR 2.4 (4.5) 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
effect of a 10% appreciation in all open net currency positions against EUR on Vaisala’s result after taxes
and equity would have been EUR 0.2 (-0.4) 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
2022 2021
Net position Sensitivity EUR million Net position Sensitivity
USD -10.2 +/- 1.0 USD -8.3 +/- 0.8
CNY 4.7 +/- 0.4 PLN -3.1 +/- 0.3
GBP 3.0 +/- 0.3 HRK -3.0 +/- 0.3
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 2022, Vaisala’s interest-bearing liabilities and
loans totaled EUR 63.4 (50.2) million, of which EUR 40.1 (40.1) million were at floating rates. EUR 10.9 (10.1)
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 sufficient level.
On December 31, 2022, Vaisala’s cash and cash equivalents amounted to EUR 55.5 (77.9) million. Vaisala
has a EUR 40.0 million unsecured term loan which was signed on May 25, 2020. The loan matures on May
25, 2023, and has a financial covenant (gearing), which is tested semi-annually. On December 31, 2022,
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. The management plans to refinance the
term loan with maturity date in 2023.
In addition, Vaisala has a domestic commercial paper program amounting to EUR 150 million, of which
EUR 12.5 (0.0) million has been withdrawn at the end of reporting period. Consequently, Vaisala had interest-
bearing liabilities totaling EUR 63.4 (50.2) million on December 31, 2022. Vaisala has no loans that would
mature after five years or more. In addition, Vaisala has a EUR 50 million unsecured revolving credit facility,
which was signed on October 5, 2018, and which was undrawn at the end of reporting period, as year before.
The committed credit facility agreement matures on October 5, 2023, and it has no financial covenants.
The management plans to refinance the revolving credit facility with maturity date in 2023.
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 55.5 (77.9) million and the nominal value of derivative financial instruments to EUR 38.3 (35.2) 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
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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 -0.6 (-0.1) million. Credit
loss is recognized once it has been officially declared that the receivable will not be paid as a result of
liquidation or bankruptcy.
20. NON-CURRENT RECEIVABLES
EUR million
2022 carrying
amounts Fair values
2021 carrying
amounts Fair values
Non-current deposits 0.8 0.8 0.7 0.7
Other non-current receivables 0.2 0.2 0.1 0.1
Total 1.0 1.0 0.9 0.9
21. FINANCIAL ASSETS AND LIABILITIES
Financial assets and liabilities
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 effective 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 different credit risk
across different 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 different 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 effective 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 2021 or 2022.
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, 2022
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 1.0 1.0 1.0 20
Trade receivables and other
receivables 0.9 101.7 101.7 101.7 12
Cash and cash equivalents 55.5 55.5 55.5 23
Total 1.0 158.2 158.2 158.2
Financial liabilities
Interest-bearing non-current loans
from financial institutions
Interest-bearing non-current lease
liabilities 8.3 8.3 8.3 17
Other non-current liabilities 2.1 2.1 2.1 21
Interest-bearing current loans from
financial institutions 40.0 40.0 40.0 21
Interest-bearing current lease
liabilities 2.7 2.7 2.7 17
Interest-bearing current liabilities 12.5 12.5 12.5 21
Trade payables and other liabilities 0.5 74.0 74.0 74.0 14
Total 0.5 139.5 139.5 139.5
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
Vaisala has a EUR 40.0 million unsecured term loan which was signed on May 25, 2020. The loan matures
on May 25, 2023, and has a financial covenant (gearing), which is tested semi-annually. On December31,
2022, 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. The management plans to
refinance the term loan with maturity date in 2023.
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In addition, Vaisala has a domestic commercial paper program amounting to EUR 150 million, of which
EUR 12.5 (0.0) million has been withdrawn at the end of reporting period. Furthermore, Vaisala has a
EUR50 million unsecured revolving credit facility which was signed on October 5, 2018 and which was
undrawn at the end of reporting period, as year before. The committed credit facility agreement matures
on October 5, 2023, and it has no financial covenants. The management plans to refinance the revolving
credit facility with maturity date in 2023.
On December 31, 2022, Vaisala had interest-bearing liabilities totaling EUR 63.4 (50.2) million. Group has
no loans that would mature after five years or more.
Maturity and interest rates of interest-bearing liabilities 2022
EUR million 2023 2024–2027 2028–2032 2033 Interest rates
Loans from financial institutions 40.0 3.54%
Revolving credit facility 0.65%
Other interest-bearing loans 12.5 1.00–2.20%
Lease liabilities 3.0 5.6 2.4 1.4 0.41–8.69%
Total 55.5 5.6 2.4 1.4
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 1.10%
Revolving credit facility 0.65%
Other interest-bearing loans 0.1 1.00%
Lease liabilities 2.7 4.7 2.5 1.8 0.52–8.69%
Total 2.8 44.7 2.5 1.8
Derivative financial contracts
EUR million 2022 2021
Nominal value of derivative financial contracts
made to hedge against exchange rate risk
Foreign exchange forward contracts 38.3 35.2
Nominal value, total 38.3 35.2
Nominal value of derivative financial contracts in currencies
2022 2021
Currency million EUR million Currency million EUR million
USD 27.0 25.1 22.0 18.5
CNH 30.0 4.2 30.0 3.9
HRK - - 22.5 3.0
JPY 350.0 2.5 300.0 2.3
PLN 9.0 1.9 18.0 3.9
SEK 25.0 2.4 32.5 3.1
CAD 3.0 2.2 - -
SGD - - 1.0 0.6
Total 38.3 35.2
Maturity of derivative financial contracts
EUR million 2022 2021
Less than 90 days 11.7 16.4
Over 90 days and less than 120 days 5.4 4.2
Over 120 days and less than 180 days 9.5 7.7
Over 180 days and less than 365 days 10.6 5.4
Over 365 days and less than 545 days 1.1 1.5
Total 38.3 35.2
Fair value of derivative financial contracts made to hedge against exchange rate risk
EUR million 2022 2021
Fair values of derivative financial contracts, assets 1.0 0.0
Fair values of derivative financial contracts, liabilities 0.5 1.3
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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, 2021 Cash flow effect
Non-cash
changes Dec 31, 2022
Loans from financial institutions 40.0 40.0
Credit facility
Lease liabilities 10.1 -2.9 3.7 10.9
Other interest-bearing liabilities 0.1 12.5 12.5
Exchange rate differences 0.0
Total 50.2 9.6 3.7 63.4
Reconciliation of movements of interest-bearing liabilities to cash flow arising from financing activities
EUR million Dec 31, 2020 Cash flow effect
Non-cash
changes Dec 31, 2021
Loans from financial institutions 40.0 40.0
Credit facility 5.0 -5.0
Lease liabilities 11.9 -3.1 1.3 10.1
Other interest-bearing liabilities 0.2 -0.1 0.1
Exchange rate differences 0.1
Total 57.1 -8.1 1.3 50.2
Specification of other adjustments in the cash flow from operating activities
EUR million 2022 2021
Change in bad debt provision 0.5 -0.2
Change in excess and obsolete provision in inventory -0.3 0.7
Change in provisions 0.7 0.2
Adjustment related to share-based incentive plans -1.4 1.7
Other adjustments 0.7 0.5
Total 0.3 3.1
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 2022 2021
Cash and cash equivalents 55.5 77.9
The fair values of cash and cash equivalents are equivalent to their carrying amounts.
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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.
Net sales of the acquired company between January 27, 2022, and December 31, 2022, were EUR
3.7 million and operating result EUR -2.1 million. If the acquisition had occurred on January 1, 2022,
management estimates consolidated net sales during January–December 2022 would have been EUR 514
million and operating result EUR 63 million.
The consideration transferred (paid in cash) was EUR 23 million.
Goodwill was recognized for EUR 16,0 million and allocated to Weather and Environment business area
cash-generating unit. Goodwill of this acquisition reflects synergies that Vaisala expects to be realized
especially from the following areas:
• Utilization of AerisWeather’s integration platform for third-party data as part of
Vaisala’s enhanced forecasting and analytics business
• Large scale utilization of AerisWeather’s developer tools and data sales platform as
channel for Vaisala’s forecasting and analytics products, and
• Vaisala’s access to new markets focusing especially on software developers
The total amount of goodwill is expected to be deductible for tax purposes.
During the measurement period, provisionally recognized liabilities have been adjusted to reduce
the amount of deferred tax liabilities by EUR 0.8 million in the purchase price allocation. As a result, the
amount of goodwill increased by EUR 0.8 million from the provisionally recognized amount.
Acquisition related costs are EUR 0.4 million, of which the majority has been recognized in the
consolidated statement of income for the financial year 2022 as sales, marketing and administrative costs.
The amounts of the assets acquired and liabilities recognized, and the cash flow from the acquisition
were as follows:
24. CONTINGENT LIABILITIES AND PLEDGES GIVEN
Contingent liabilities and pledges given
EUR million 2022 2021
Bank guarantees issued for obligations 12.8 15.0
Investment commitments
On December 31, 2022, Vaisala had other commitments related to intangible and tangible assets for EUR 3
(3) million.
Purchase commitments
On December 31, 2022, Vaisala had purchase commitments totaling EUR 31 (30) million. Additionally, the
group had commitments under the purchase agreements totaling a maximum of EUR 32 (29) million, if
realized.
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Business combinations
EUR thousand Fair value recognized on acquisition
Goodwill 15,853
Technology-based intangible assets 3,017
Customer related intangible assets 2,544
Tangible assets 9
Trade receivables and other receivables 177
Deferred tax assets 2,057
Cash and cash equivalents 1
Total assets 23,659
Trade and other payables 96
Contract liabilities and other deferred revenue 445
Total liabilities 541
Net assets 23,118
Purchase price paid in cash -23,119
Cash and cash equivalents acquired 1
Total net cash outflow on acquisition -23,118
There were no business combinations during financial year 2021.
A contingent consideration liability relating to prior acquisitions totaling EUR 5.6 (1.0) million was paid in
2022. The remaining contingent liability related to prior acquisitions was EUR 0.1 (5.6) million at the end
of financial year 2022. In the financial year 2022, no contingent consideration liability was recognized as
income or expense (2021: EUR 4.5 million was recognized as expense) based on the financial performance
after the acquisition and based on the estimated future performance.
26. SUBSIDIARIES
Name Country
Group
ownership %,
Dec 31, 2022
Group
ownership %,
Dec 31, 2021
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 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 99.95 95.79
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
Whether or Knot LLC United States 100 -
Vaisala Korea Co. Ltd South-Korea 100 -
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.
In addition, Vaisala established a subsidiary Vaisala Korea Co. Ltd to South-Korea on April 22, 2022.
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.
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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 2022 2021
Non-current assets 3.2 3.5
Current assets 3.5 3.3
Liabilities 2.8 3.1
Net assets 3.9 3.7
Vaisala’s share of net assets 1.4 1.3
Net sales 4.6 4.6
Result for the financial year 0.5 0.7
The information presented in the table is based on the latest available financial information.
Carrying amount of investments in associated company
EUR million 2022 2021
Carrying amount at Jan 1 1.3 1.1
Share of result 0.2 0.2
Dividend received -0.1 -0.1
Carrying amount at Dec 31 1.4 1.3
The carrying value of the associated company does not include goodwill.
Transactions with associated company and receivables and liabilities
EUR million 2022 2021
Sales 0.3 0.8
Receivables - 0.0
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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 Leadership Team. 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.
Employee benefits of management
EUR thousand 2022 2021
Salary and bonuses of the President and CEO (payment basis)
Öistämö Kai
Salary 491 481
Short term incentives 345 40
Share-based payment 169 263
Statutory pension 138 81
Supplementary pension 114 114
Total 1,256 979
EUR thousand 2022 2021
Remuneration of the members of Vaisala Leadership Team
(excl. the President and CEO) (payment basis)
Salaries 1,694 1,730
Short term incentives 839 357
Share-based payment 5,041 2,185
Statutory pension 418 324
Supplementary pension 285 272
Total 8,277 4,868
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.
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Remuneration of the Board of Directors 2022 (payment basis)
EUR thousand Annual remuneration
Compensation,
Audit Committee
Compensation,
People and Sustainability
Committee Total
Castrén Petri Member of the Board 40 8 48
Jääskeläinen Antti Member of the Board 40 8 48
Lundström Petra Member of the Board 40 7 47
Rinnevaara Jukka Member of the Board 40 7 47
Ståhlberg Kaarina Member of the Board 40 12 52
Syrjänen Tuomas Member of the Board 40 7 47
Voipio Raimo Vice Chair of the Board 40 8 48
Voipio Ville Chair of the Board 55 7 62
Total 335 36 28 399
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
The name of the Remuneration and HR Committee was changed to People and Sustainability Committee as of January 1, 2022.
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 2022 2021
Audit 0.5 0.5
Tax advice 0.0 0.0
Statements 0.0 0.0
Other fees 0.1 0.0
Total 0.7 0.6
Other work than audit services given by the principal auditor Deloitte Oy during the year 2022 were
EUR0.2 (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 effect on the consolidated financial statements of the group. The group will adopt each
standard as from the effective date, or if the effective date is other than the first day of the financial year,
from the beginning of the next financial year after the effective 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 effective and had not yet in some cases
been adopted by the EU (marked with *):
• IFRS 17 Insurance Contracts (including the June 2020 and December 2021 amendments to IFRS 17)
• Amendments to IFRS 10 and IAS 28 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 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 16 Lease Liability in a Sale and Leaseback*
The management expects that the adoption of the standards will have no material impact on the financial
statements of the group in future periods.
IFRS 17 Insurance Contracts
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 and related 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.
Amendments to IFRS 10 Consolidated Financial Statements and IAS 28 Investments
in Associates and Joint Ventures—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 recognised 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 recognised 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 effective date of the amendments has yet to be set by the IASB; 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.
Amendments to IAS 1 Presentation of Financial Statements—Classification of
Liabilities as Current or Non-current
The amendments to IAS 1 published in January 2020 affect 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 unaffected 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.
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The amendments are applied retrospectively for annual periods beginning on or after January 1,
2023, with early application permitted. The IASB is currently considering further amendments to the
requirements in IAS 1 on classification of liabilities as current or non-current, including deferring the
application of the January 2020 amendments. The adoption of the amendment is not expected to have an
impact on the consolidated financial statements in future periods.
Amendments to IAS 1 Presentation of Financial Statements and IFRS Practice
Statement 2 Making Materiality Judgements—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 IASB 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 effective 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 effective 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 Accounting Policies, Changes in Accounting Estimates and
Errors—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 IASB 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 effects 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 IASB added two examples (Examples 4–5) to the Guidance on implementing IAS 8, which
accompanies the Standard. The IASB has deleted one example (Example 3) as it could cause confusion in
light of the amendments.
The amendments are effective 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 Income Taxes—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 differences.
Depending on the applicable tax law, equal taxable and deductible temporary differences may arise on
initial recognition of an asset and liability in a transaction that is not a business combination and affects
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 IASB also adds an illustrative example to IAS 12 that explains how the amendments are applied.
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 difference can be utilised) and a deferred tax liability for all deductible and
taxable temporary differences 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 effect 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
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The amendments are effective for annual reporting periods beginning on or after January 1, 2023, with
earlier application permitted.
Vaisala will apply the amendment in accordance with transition rule with the effect of initial application
recognized as of January 1, 2022. Based on the preliminary assessment, on December 31, 2022, the group
recognizes deferred tax assets related to right-of-use assets amounting to EUR 2 million and deferred tax
liability related to lease liabilities amounting to EUR 2 million.
Amendments to IFRS 16 Leases—Lease Liability in a Sale and Leaseback
The amendments clarify how a seller-lessee subsequently measures sale and leaseback transactions
that satisfy the requirements to be accounted for as a sale. These amendments require a seller-lessee to
subsequently measure lease liabilities arising from a leaseback in a way that it does not recognise any
amount of the gain or loss that relates to the right of use it retains. The new requirements do not prevent a
seller-lessee from recognising in profit or loss any gain or loss relating to the partial or full termination of a
lease.
The amendments are effective for annual reporting periods beginning on or after January 1, 2024.
Earlier application is permitted. The application of this amendment may have an impact on the group’s
consolidated financial statements in future periods should such transactions arise.
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Parent company income statement
EUR Note
Jan 1–Dec 31,
2022
Jan 1–Dec 31,
2021
Net sales 2 343,315,466.88 299,731,553.65
Cost of production and procurement 4, 5 -174,206,561.33 -151,805,227.80
Gross profit 169,108,905.55 147,926,325.85
Cost of sales and marketing 4, 5 -40,087,775.66 -34,962,485.64
Cost of administration
Research and development costs 4, 5 -49,867,740.47 -45,754,708.11
Other administrative costs 4, 5 -55,686,503.70 -48,839,666.98
Other operating income and expenses 3 72,112.36 85,723.75
Operating result 23,538,998.08 18,455,188.87
Financial income and expenses 6 10,276,507.00 1,600,673.53
Result before appropriations and taxes 33,815,505.08 20,055,862.40
Appropriations
Change in depreciation difference -834,605.39 -1,086,208.38
Result before taxes 32,980,899.69 18,969,654.02
Direct taxes 7 -6,014,958.21 -3,986,518.34
Result for the financial year 26,965,941.48 14,983,135.68
*
)
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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Parent company balance sheet
EUR Note Dec 31, 2022 Dec 31, 2021
Assets
Non-current assets
Intangible assets 8
Goodwill 33,071.17 52,913.86
Intangible rights 12,787,059.77 931,049.20
Other intangible assets 8,667,011.16 12,269,359.88
Advance payments and intangible assets in progress 339,779.44 252,718.15
Total intangible assets 21,826,921.54 13,506,041.09
Property, plant and equipment 8
Land and waters 2,904,868.22 2,904,868.22
Buildings 42,536,262.57 43,042,031.80
Machinery and equipment 23,742,698.09 21,475,340.43
Other tangible assets 74,417.51 74,417.51
Advance payments and construction in progress 7,921,239.84 8,354,294.35
Total property, plant and equipment 77,179,486.23 75,850,952.31
Investments 8
Holdings in group undertakings 74,650,890.57 74,480,891.87
Other shares and holdings 101,000.00 100,000.00
Total investments 74,751,890.57 74,580,891.87
Total non-current assets 173,758,298.34 163,937,885.27
EUR Note Dec 31, 2022 Dec 31, 2021
Current assets
Non-current receivables
Other receivables 143,369.22 49,586.20
Total long-term receivables 143,369.22 49,586.20
Inventories
Materials, consumables and finished goods 44,788,097.25 35,858,010.93
Total inventories 44,788,097.25 35,858,010.93
Current receivables
Trade receivables 17 59,989,414.71 40,072,940.68
Other receivables 9, 17 5,300,801.72 5,048,548.29
Prepaid expenses and accrued income 10, 17 18,869,190.54 25,362,525.79
Total current receivables 84,159,406.97 70,484,014.76
Cash and cash equivalents 37,534,733.55 64,634,457.59
Total current assets 166,625,606.99 171,026,069.48
Total assets 340,383,905.33 334,963,954.75
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Parent company balance sheet
EUR Note Dec 31, 2022 Dec 31, 2021
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 140,055,987.63 151,035,682.19
Result for the financial year 26,965,941.48 14,983,135.68
Total shareholders’ equity 175,104,771.31 174,101,660.07
Appropriations
Depreciation difference 1,920,813.77 1,086,208.38
Provisions 12 0.00 97,119.25
EUR Note Dec 31, 2022 Dec 31, 2021
Liabilities
Non-current
Loans from financial institutions 15 - 40,000,000.00
Other non-current liabilities 14 893.00 12,857.19
Current
Advances received 2,191,679.39 2,068,348.53
Trade payables 17 22,847,352.95 19,209,492.93
Loans from financial institutions 15 40,000,000.00 -
Other current loans 17 44,378,233.23 35,257,332.86
Other current liabilities 14 2,688,754.88 11,842,938.50
Provisions 12 1,630,503.51 1,026,306.92
Accrued expenses and deferred income 16, 17 49,620,903.29 50,261,690.12
Current liabilities total 163,357,427.25 119,666,109.86
Total liabilities 165,279,134.02 160,862,294.68
Total shareholders’ equity and liabilities 340,383,905.33 334,963,954.75
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Parent company cash flow statement
EUR thousand Note
Jan 1–Dec 31,
2022
Jan 1–Dec 31,
2021
Result for the financial period 26,966 14,983
Depreciation, amortization and impairment 5 13,603 11,617
Financial income and expenses 6 -10,277 -1,601
Gains and losses on sale of intangible assets and property,
plant and equipment 3 -27 29
Depreciation difference 835 1,086
Income taxes 7 6,015 3,987
Other adjustments -207 1,952
Inventories, increase (-) / decrease (+) -9,231 -6,410
Non-interest-bearing receivables, increase (-) / decrease (+) -13,543 -5,138
Non-interest-bearing liabilities, increase (+) / decrease (-) -5,413 20,487
Changes in working capital -28,187 8,939
Paid financial items, net 6 -4,740 1,292
Dividend received from business operations 6 12,994 2,624
Income taxes paid 7 -5,460 -4,458
Cash flow from operating activities 11,516 40,450
Cash flow from investing activities
Investments in shares 8 -171 -263
Investments in intangible assets 8 -13,693 -287
Investments in property, plant and equipment 8 -9,761 -15,841
Divestments 8 98 101
Proceeds from sale of shares 8 -4,456 -
Repayments on loan receivables 17 4,885 13,856
Cash flow from investing activities -23,098 -2,434
EUR thousand Note
Jan 1–Dec 31,
2022
Jan 1–Dec 31,
2021
Cash flow from financing activities
Proceeds from short-term borrowings 14 114,888 63,479
Repayment of short-term borrowings 14 -105,770 -50,063
Dividend paid 13 -24,635 -22,022
Cash flow from financing activities -15,517 -8,606
Change in cash and cash equivalents increase (+) / decrease (-) -27,099 29,410
Cash and cash equivalents at Jan 1 64,634 35,225
Change in cash and cash equivalents increase (+) / decrease (-) -27,099 29,410
Cash and cash equivalents at Dec 31 37,535 64,634
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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 differences are recognized in the financial income and expenses.
Product net sales include revenue from products, spare parts and system deliveries. System deliveries
contain 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-off 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-off 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 effects of changes in assumptions are recognized in the income statement.
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 income statement 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 2022 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 2022 2021
Americas 102,998 86,357
of which United States 75,077 58,046
APAC 114,045 98,953
EMEA 126,273 114,421
of which Finland 8,699 7,672
Total 343,315 299,732
Net sales by business area
EUR thousand 2022 2021
Weather and Environment
Products 63,008 61,791
Projects 39,730 40,798
Services 7,604 7,135
Total 110,343 109,724
Industrial Measurements
Products 51,402 42,312
Services 2,520 2,266
Total 53,922 44,579
Net sales from subsidiaries 179,051 145,428
Total 343,315 299,732
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Net sales by timing of revenue recognition
EUR thousand 2022 2021
Revenue recognized at a point in time 117,754 108,191
Revenue recognized over time 46,510 46,112
Net sales from subsidiaries 179,051 145,428
Total 343,315 299,732
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, 2022 Dec 31, 2021
Trade receivables 59,989 40,073
Accrued revenue 11,684 18,949
Advances received 2,192 2,068
Deferred revenue 12,822 10,345
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 2022, the parent company recognized EUR 6 (6) million revenue that was included
in the deferred revenue balance at the beginning of the period.
On December 31, 2022, the order book amounted to EUR 73.4 (77.9) million. Of the order book,
EUR58.3 (60.7) million is scheduled to be recognized as revenue in 2023 (2022) and EUR 15.1 (17.2) million
is scheduled to be recognized later.
3. OTHER OPERATING INCOME
Other operating income
EUR thousand 2022 2021
Gains on disposal of assets 27 1
Other operating income
Indemnities and other 46 115
Total 72 117
Other operating expenses
EUR thousand 2022 2021
Loss on disposal of assets - 30
Total - 30
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4. PERSONNEL EXPENSES AND NUMBER OF PERSONNEL
Personnel expenses
EUR thousand 2022 2021
Wages and salaries 96,537 95,770
Pension costs 15,861 13,942
Other personnel costs 3,050 2,897
Total 115,448 112,610
Personnel average
Persons 2022 2021
In Finland 1,401 1,287
Outside Finland 10 9
Total 1,411 1,297
Personnel Dec 31
Persons 2022 2021
In Finland 1,475 1,303
Outside Finland 9 10
Total 1,484 1,313
Salary and remunerations of the President and CEO (payment basis)
EUR thousand 2022 2021
Öistämö Kai
Salary 491 481
Short term incentives 345 40
Share-based payment 169 263
Statutory pension 138 81
Supplementary pension 114 114
Total 1,256 979
In 2021, Kjell Forsén, Vaisala’s former President and CEO, 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 2022 (payment basis)
EUR thousand
Annual
remuneration
Compensation,
Audit
Committee
Compensation,
People and
Sustainability
Committee Total
Castrén Petri Member of the Board 40 8 48
Jääskeläinen Antti Member of the Board 40 8 48
Lundström Petra Member of the Board 40 7 47
Rinnevaara Jukka Member of the Board 40 7 47
Ståhlberg Kaarina Member of the Board 40 12 52
Syrjänen Tuomas Member of the Board 40 7 47
Voipio Raimo Vice Chair of the Board 40 8 48
Voipio Ville Chair of the Board 55 7 62
Total 335 36 28 399
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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
The name of the Remuneration and HR Committee was changed to People and Sustainability Committee
as of January 1, 2022.
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 2022 2021
Amortization of intangible assets 5,301 4,176
Depreciation of property, plant and equipment 8,198 7,406
Impairment of intangible and tangible assets 104 34
Total 13,603 11,617
In the financial year 2022 amortization of intangible assets included amortization EUR 3.6 (3.5) million
related to merger losses included in other intangible assets.
6. FINANCIAL INCOME AND EXPENSES
EUR thousand 2022 2021
Dividend income
From group companies 12,994 2,624
Other interest and financial income
From group companies 30 58
From others 2,811 1,068
Interest and other financial expenses
To group companies -281 -15
To others -4,761 -4,308
Foreign exchange gains and losses -517 2,174
Total 10,277 1,601
7. DIRECT TAXES
EUR thousand 2022 2021
Taxes from the financial year 4,279 4,014
Taxes from previous years 1,736 -27
Total 6,015 3,987
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8. NON-CURRENT ASSETS AND OTHER LONG-TERM INVESTMENTS
Intangible assets 2022
EUR thousand Goodwill
Intangible
rights
Other
intangible
assets
Advance
payments and
intangible
assets in
progress Total
Acquisition cost Jan 1, 2022 88 29,691 20,361 253 50,392
Increases 13,496 197 13,693
Decreases -4,808 -4,808
Transfers between items 102 -110 -8
Acquisition cost Dec 31, 2022 88 38,481 20,361 340 59,269
Accumulated amortization
and write-downs Jan 1, 2022 35 28,760 8,092 36,886
Accumulated amortization of
decreases and transfers -4,808 -4,808
Amortization and write-downs
for the financial year 20 1,742 3,602 5,364
Accumulated amortization
and write-downs Dec 31, 2022 55 25,693 11,694 37,442
Carrying value Dec 31, 2022 33 12,787 8,667 340 21,827
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
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Property, plant and equipment 2022
EUR thousand Land and waters Buildings
Machinery and
equipment Other tangible assets
Advance payments and
construction in progress Total
Acquisition cost Jan 1, 2022 2,820 77,376 64,641 74 8,354 153,265
Increases 791 3,496 5,425 9,712
Decreases -2,590 -5,019 -7,609
Transfers between items 1,102 4,612 -5,858 -144
Acquisition cost Dec 31, 2022 2,820 76,678 67,730 74 7,921 155,224
Accumulated depreciation and write-downs Jan 1, 2022 39,951 43,165 83,116
Accumulated depreciation of decreases and transfers -3,085 -4,523 -7,608
Depreciation for the financial year 2,878 5,319 8,198
Write-downs 16 25 41
Accumulated depreciation and write-downs Dec 31, 2022 39,760 43,987 83,747
Revaluation 84 5,618 5,702
Carrying value Dec 31, 2022 2,905 42,536 23,743 74 7,921 77,179
On December 31, 2022, the carrying amount of machinery and equipment used in production was EUR 15.9 (14.7) million.
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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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Investments 2022
EUR thousand
Holdings in group
undertakings
Other shares
and holdings Total
Acquisition cost Jan 1, 2022 74,481 100 74,581
Increases 170 1 171
Carrying value Dec 31, 2022 74,651 101 74,752
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
9. OTHER RECEIVABLES
EUR thousand 2022 2021
Advances paid 422 690
Value added tax receivables 3,008 2,519
Grants 1,787 1,817
Other 84 22
Total 5,301 5,049
10. DEFERRED ASSETS
EUR thousand 2022 2021
Tax receivables 1,385 1,881
Deferred revenue 11,684 18,949
Derivative financial contracts 948 44
Other deferred assets 4,853 4,489
Total 18,869 25,363
Derivative financial contracts
EUR million 2022 2021
Nominal value of derivative financial contracts made to hedge against
exchange rate risk
Foreign exchange forward contracts 38.3 35.2
Nominal value, total 38.3 35.2
Nominal value of
derivative financial
contracts in currencies
2022 2021
Currency million EUR million Currency million EUR million
USD 27.0 25.1 22.0 18.5
CNH 30.0 4.2 30.0 3.9
HRK - - 22.5 3.0
JPY 350.0 2.5 300.0 2.3
PLN 9.0 1.9 18.0 3.9
SEK 25.0 2.4 32.5 3.1
CAD 3.0 2.2 - -
SGD - - 1.0 0.6
Total 38.3 35.2
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Maturity of derivative financial contracts
EUR million 2022 2021
Less than 90 days 11.7 16.4
Over 90 days and less than 120 days 5.4 4.2
Over 120 days and less than 180 days 9.5 7.7
Over 180 days and less than 365 days 10.6 5.4
Over 365 days and less than 545 days 1.1 1.5
Total 38.3 35.2
Fair value of derivative financial contracts made to hedge against exchange rate risk
EUR million 2022 2021
Fair values of derivative financial contracts, assets 1.0 0.0
Fair values of derivative financial contracts, liabilities 0.5 1.3
11. DEFERRED TAX ASSETS AND LIABILITIES
Deferred tax assets
EUR thousand 2022 2021
Share-based payments 1,661 2,542
Provisions 326 225
Credit loss allowance 18 -
Total 2,006 2,767
Deferred tax assets and liabilities have not been recognized in the parent company’s balance sheet.
Deferred tax liabilities arising from revaluation and deprecation difference have not been taken into
account. If realized, the tax effect of depreciation difference would be EUR 0.4 million and from revaluation
the tax effect 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 2022 2021
Provisions Jan 1 97 97
Decreases -97 -
Provisions Dec 31 - 97
Current provisions
EUR thousand 2022 2021
Provisions Jan 1 1,026 914
Increases 694 158
Decreases -90 -46
Provisions Dec 31 1,631 1,026
In 2022 and 2021 provisions related to warranties and other contractual provisions.
13. SHAREHOLDERS’ EQUITY
The parent company’s shares are divided into series K shares and series A shares. 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 differentiated 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, 2022 and 2021, 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 2022 2021
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 1 166,019 172,076
Dividend paid -24,635 -22,022
Distribution of treasury shares 1,368 1,652
Loss on transfer of treasury shares -2,695 -671
Retained earnings Dec 31 140,056 151,036
Result for the financial year 26,966 14,983
Total equity 175,105 174,102
Distributable funds
EUR thousand 2022 2021
Retained earnings 140,056 151,036
Result for the financial year 26,966 14,983
Fund of invested non-restricted equity 422 422
Total 167,444 166,441
For the financial year 2021 a dividend of EUR 0.68 per share was paid, a total of EUR 24.6 million.
14. OTHER NON-CURRENT AND CURRENT LIABILITIES
On December 31, 2022, the parent company had other non-current non-interest-bearing liabilities in total
of EUR 0.0 (0.0) million. At the end of the financial year, the parent company had no non-current liabilities
that will mature after five years.
On December 31, 2022, other current liabilities were EUR 2.7 (11.8) million. They included contingent
consideration relating to prior acquisitions in total of EUR 0.1 (5.6) million. In the financial year 2022,
no contingent consideration liability was recognized as income or expense (2021: EUR 4.5 million was
recognized as expense) 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 5.6 (1.0) million was paid in 2022.
15. LOANS FROM FINANCIAL INSTITUTIONS
Vaisala has a EUR 40.0 million unsecured term loan which was signed on May 25, 2020. The loan matures
on May 25, 2023, and has a financial covenant (gearing), which is tested semi-annually. On December 31,
2022, 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. The management plans to
refinance the term loan with maturity date in 2023.
In addition, Vaisala has a domestic commercial paper program amounting to EUR 150 million, of which
EUR 12.5 (0.0) million has been withdrawn at the end of reporting period. Consequently, the parent
company had interest-bearing liabilities totaling EUR 52.5 (40.1) million on December 31, 2022. Vaisala has
no loans that would mature after five years or more. In addition, Vaisala has a EUR 50 million unsecured
revolving credit facility, which was signed on October 5, 2018, and which was undrawn at the end of
reporting period, as year before. The committed credit facility agreement matures on October 5, 2023, and
it has no financial covenants. The management plans to refinance the revolving credit facility with maturity
date in 2023.
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16. ACCRUED EXPENSES AND DEFERRED INCOME
EUR thousand 2022 2021
Personnel expense accruals 30,192 32,179
Deferred revenue 12,822 10,345
Derivative financial contracts 538 1,289
Direct tax accruals 62 -
Other accrued expenses and deferred income 6,008 6,449
Total 49,621 50,262
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 2022 2021
Reveivables
Trade receivables 27,080 20,992
Other receivables 32 8
Prepaid expenses and accrued income 1,850 2,343
Total receivables 28,962 23,344
Liabilities
Current loans 31,837 35,165
Trade payables 1,553 1,447
Other liabilities - 1
Accrued expenses and deferred income 3,583 1,921
Total liabilities 36,972 38,534
18. CONTINGENT LIABILITIES AND PLEDGES GIVEN
Contingent liabilities and pledges gives
EUR thousand 2022 2021
For own debt or liability
Bank guarantees issued for obligations 11,980 14,550
For group companies
Guarantees 540 211
Leasing commitments
Payable during the following financial year 398 192
Payable later 1,095 70
Total leasing liabilities 1,493 262
Total contingent liabilities and pledges given 14,013 15,023
Investment commitments
On December 31, 2022, the parent company had commitments related to intangible and tangible assets for
EUR 3 (3) million.
Purchase commitments
On December 31, 2022, the parent company had purchase commitments totaling EUR 25 (24) million.
19. AUDITOR’S FEES
EUR thousand 2022 2021
Audit 332 326
Statements 46 28
Tax advice 28 -
Other fees 113 48
Total 520 402
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Signing of the Board of Directors’
report and financial statements
Vantaa, February 15, 2023
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 2022. 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 sufficient
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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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 514,2 million consists of product, service and project sales. Product and
project sales account for EUR 449,0 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 different 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 estimate related 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 61,6 million. Inventory valuation
is associated with the excess and obsolescence risk.
• As disclosed in the note 13 Vaisala has recognized write-offs and excess and obsolescence allowances
for slow moving and obsolete inventory.
• 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.
• 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 different 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 sufficient 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 effectiveness 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 Officer’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 sufficient 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.
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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 9 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 15, 2023
Deloitte Oy
Audit Firm
Reeta Virolainen
Authorised Public Accountant (KHT)
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Financial key figures
EUR million 2022 2021 2020 2019 2018
Net sales 514.2 437.9 379.5 403.6 348.8
Exports and international operations, % 98.0 98.0 97.0 98.0 98.0
Gross profit, % 54.8 55.2 56.1 54.8 53.1
Operating result 62.5 50.1 44.8 41.1 38.9
% of net sales 12.2 11.5 11.8 10.2 11.1
Result before taxes 59.6 48.3 41.3 40.2 37.5
% of net sales 11.6 11.0 10.9 10.0 10.8
Result for the financial year 45.0 39.5 32.8 33.6 29.5
% of net sales 8.8 9.0 8.7 8.3 8.5
R&D expenditure 62.4 55.3 53.2 52.8 45.4
% of net sales 12.1 12.6 14.0 13.1 13.0
Depreciation, amortization and impairment 23.6 21.6 21.1 23.5 12.1
EUR million 2022 2021 2020 2019 2018
Cash and cash equivalents 55.5 77.9 45.4 56.4 72.7
Equity 250.7 230.3 205.5 198.3 182.9
Statement of financial position total 439.2 408.0 351.8 361.5 334.4
Return on equity, % 18.7 18.1 16.3 17.7 16.0
Solvency ratio, % 58.2 57.2 59.0 55.7 55.6
Interest-bearing liabilities 63.4 50.2 57.0 51.5 40.5
Gearing, % 3.2 -12.0 5.7 -2.4 -17.6
Net working capital 82.4 44.5 61.5 40.4 25.9
Capital expenditure 13.7 19.2 31.0 26.8 14.5
% of net sales 2.7 4.4 8.2 6.6 4.2
Cash flow from operating activities 29.8 80.0 41.0 40.8 48.3
Orders received 533.7 455.2 382.8 419.4 334.2
Order book at the end of the financial year 181.5 160.0 137.8 139.0 120.6
Personnel expenses 190.4 174.3 154.1 157.7 133.6
Average personnel 2,141 1,967 *1,929 1,829 1,678
Personnel at the end of financial year 2,235 1,979 *1,939 1,837 1,816
* Number of employees includes persons in long-time absence as of January 1, 2021. Year 2020 has been adjusted accordingly.
Key figures
OUR BUSINESS
SUSTAINABLE BUSINESS PRACTICES
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Key figure graphs Board of Directors’ report Financial statements 2022 Key figures Auditor’s report
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 (743700RNDD7KU11HW873-2022-12-
31-en.zip) of Vaisala Oyj (0124416-2) for the financial year 1.1.–31.12.2022
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, disclosures and
identifying information 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 Management 1
(ISQM 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,
• whether the disclosures of the consolidated financial statements
included in the ESEF financial statements of Vaisala Oyj and the
identifying information are marked up using the XBRL mark-ups
and iXBRL technology, in all material respects, in accordance with
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 sufficient and
appropriate to provide a basis for our opinion.
Opinion
In our opinion, the tagging of the consolidated financial statements,
disclosures and identifying information in the ESEF financial
statements (743700RNDD7KU11HW873-2022-12-31-en.zip) of Vaisala
Oyj for the financial year 1.1.–31.12.2022 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 31.12.2022 has been expressed
in our auditor’s report dated 15.2.2023. In this report, we do not express
an audit opinion or any other assurance conclusion on the consolidated
financial statements.
Vantaa, 15 February, 2023
Deloitte Oy
Audit Firm
Reeta Virolainen
APA
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