Viessmann with Strong Solidarity and Growth through the Corona Crisis
March 22, 2021
Total revenue increased by 6 percent to a new record of EUR 2.8 billion | Total number of employees in the Viessmann family increases by 450 to 12,750 | Creating living spaces for generations to come: Climate solutions based on renewable energies and digital services with highest growth | Successful crisis management guided by three principles: Health, social responsibility, and securing the future | Strong start to the new financial year 2021 | Further growth opportunities by expanding the Integrated Solutions offering and entering new markets in South Africa and Southeast Asia.
Allendorf (Eder) – The Viessmann Group successfully mastered the past year despite the global Corona pandemic. Following a global market slump at the beginning of the crisis, the family-owned company, together with its installation partners, quickly made a significant contribution to maintaining everyday life in society as a system-relevant industry and continued on its successful growth track. Total revenue in 2020 rose by 6 percent to a total of 2.8 billion euros (previous year: 2.65 billion euros) reaching a new record level.
Maximilian Viessmann, Co-CEO of the family business: "Thanks to a unique sense of solidarity among our installation partners and our 12,750 family members, we have successfully managed to continue to grow in a year of crisis. With a lot of positive energy and for a common purpose: To create living spaces for generations to come. A crisis shows clearly who you are, and not who you want to be. Together and united, we have shown who we are. I am extremely grateful for the team spirit, the solidarity and the sense of responsibility demonstrated by the entire team."
Successful crisis management guided by three principles
From the beginning of the pandemic, the company focused on three guiding principles: First, ensure the health of all family members worldwide. Second, assume social responsibility. Third, secure the future of the company.
Impressive facts prove that all three principles were successfully implemented: Despite the fact that our more than 20 production plants around the globe continued production almost without interruption, there was a below-average number of corona cases within the company thanks to an excellent hygiene, and contact and conduct concept as well as a far-reaching testing strategy.
The global Viessmann family has also impressively taken on new challenges in terms of social responsibility. Thanks to internal initiatives, in addition to the production of climate solutions, mobile ventilators and emergency stations, face masks and disinfectants were also manufactured. In addition, Viessmann engineers, in cooperation with medical experts and the RWTH Aachen University, developed new air purification solutions which permanently supply school classrooms with fresh air. By constantly purifying the air and supplying the rooms with fresh air, aerosols are removed and students and teachers are protected in the best possible way against viral infection. In addition, the family-owned company foundation, the Viessmann Foundation, has supported more than 80 schools during the crisis either with ventilation solutions, laptops, computers, monitors, disinfectants or masks so that they can continue to teach their pupils.
Dr. Markus Klausner, Chief Technology Officer of Viessmann Climate Solutions: "The technologically creative and extraordinary ideas for developing mobile ventilation equipment or ventilation solutions for schools all come from our own teams. There is a lot of engineering skill, attention to detail and a high level of reliability behind all our solutions. Because these are integral parts of our more than 100 year old Viessmann DNA. We are extremely proud of this creativity and co-creation from our family members."
At the same time, Viessmann has continued to invest in its own future despite the crisis. This includes the expansion of research and development activities in innovative technologies, such as hydrogen-ready heating systems and fuel cells, or holistic solutions for purely electricity powered houses, including digital energy management. The establishment of a new development centre for heat pumps in Dresden, Germany, is also part of these investments. In 2020, all investments made to ensure the company’s future totalled more than 120 million euros. Similarly, the company continued to invest in its own employees during the crisis and increased its total number of family members. At the end of the year, the Viessmann family numbered a total of 12,750 members worldwide (previous year 12,300).
Dr. Ulrich Hüllmann, CFO of the Viessmann Group: "We owe the fact that we were able to continue growing in 2020 despite the crisis to two things: Firstly, the extraordinary commitment of our partners and employees. Secondly, our profitable growth strategy, which we launched several years ago. On this strong basis, we are building the foundation for our future with full force."
Renewable energies and digital services with greatest growth
The 6 percent growth and the record turnover of 2.8 billion euros in 2020 were driven primarily by two areas: renewable energy-based climate solutions and digital services. Green climate solutions include hydrogen-ready wall-mounted gas boilers, fuel cells (+8 percent) and heat pumps (+35 percent) and batteries (+48 percent). Overall, around 50 percent of turnover today already results from business with "Green Energy Ready Solutions". This positive development is accompanied by dynamic growth in value added and digital services: Subsidy management program “Förderprofi” (+500 percent), Viessmann Wärme/Heating-as-a-Service (+450 percent), the company’s partner app VitoGuide (+67 percent) and its end customer app ViCare (+47 percent). The high level of online orderings increased by 16 percent.
The largest increase in sales in the Corona pandemic was recorded in the home market, Germany. Viessmann 2020 also recorded positive growth momentum in Poland, Austria, Belgium, Italy, Turkey and Switzerland.
Thomas Heim, Chief Sales and Marketing Officer of Viessmann Climate Solutions: "2020 has turned everything completely upside down. And unusual challenges require unusual solutions - whether in production, logistics, purchasing, marketing or in the daily exchange with our installation partners. The positive feedback on our digital offerings and record sales in Germany are an impressive testament to an extraordinary team performance. We owe a special thanks to our valued partners in particular.”
Strong start to the new business year with further growth opportunities
To open up new markets, the company acquired a stake in ThermoWise, a renowned South African heat pump specialist, in the past financial year. ThermoWise specialises in large-scale projects in hospitals, shopping centres, hotels and residential complexes. The partnership will lay the foundation for Viessmann's entry into fast-growing markets in Africa. Viessmann also expanded its product portfolio and improved its market access in Central and Eastern Europe through the acquisition of Kospel in Poland, a specialist manufacturer of electric instantaneous water heaters, electric boilers and domestic hot water cylinders. At the same time, further internationalisation progressed in the South-East Asian region with new locations, especially in Singapore.
The positive business development in 2020 continues in the current year. This is demonstrated by the double-digit percentage growth in sales in the first two months of 2021. It is particularly pleasing that the strongest growth rates result from solutions based on decentralised renewable energies. The company expects further positive momentum for the current year from the continuous expansion of its INTEGRATED SOLUTIONS offering including products, systems, platforms, digital services, value added services as well as from the further development of sustainable energy mixes such as the promising biogas business activities, following the successful consolidation of the Industrial Solutions business unit.
Frauke von Polier, Chief People Officer at Viessmann Climate Solutions: "Our positive economic development during the crisis is the strength of our culture, which is ultimately the greatest competitive advantage in a dynamically changing world. Behind every success there are people, and our cohesion in these times will unite us even more in the future to jointly co-create living spaces for generations to come."
The Executive Board of Viessmann Climate Solutions will announce further details on the 2020 business figures and on the new products and services in the Integrated Solutions Offering 2021 at a digital press conference on Monday, 22 March 2021, starting at 2:00 pm. Registration is possible via the website www.viessmann.live.
The complete press kit with all the information about the new products in the Integrated Viessmann Solutions Offering can be downloaded here.
Viessmann is the leading provider of climate solutions for all living spaces. The ‘Integrated Viessmann Solutions Offering’ enables users to connect products and systems seamlessly via digital platforms and services for climate (heating, cooling, air quality) and refrigeration solutions. All solutions are based on renewable energy and maximum efficiency. All activities of the family company, founded in 1917, are based on its purpose. “We create living spaces for generations to come” – that is the responsibility of the global Viessmann family with 12,300 members.
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