Financial
Review
Governance and Financial Review 2024
This Board of Directors’ report and financial statements are not an xHTML document compliant with the
European Single Electronic Format (ESEF) regulation. Board of Directors’ report and financial statements
2024 in accordance with ESEF regulations are available at www.vaisala.com.
In 2024, the world continued to face complex
challenges, with increasing geopolitical tensions
and uncertainty in the business environment.
Regardless of the market challenges, Weather and
Environment business area’s net sales grew and
Industrial Measurements business area showed
resilience in the changeling market environment.
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.
Corporate Governance Statement
Key figure graphs
40%
Industrial Measurements
226.5 MEUR
60%
Weather and Environment
338.2 MEUR
NET SALES BY BUSINESS AREA 2024
40%
Industrial Measurements
226.5 MEUR
60%
Weather and Environment
338.2 MEUR
NET SALES BY BUSINESS AREA 2024
40%
Industrial Measurements
226.5 MEUR
60%
Weather and Environment
338.2 MEUR
NET SALES BY BUSINESS AREA 2024
Americas: North and South America
APAC: Asia Pacic
EMEA: Europe, Middle-East, and Africa
35%
Americas 198.0 MEUR
31%
APAC 173.2 MEUR
34%
EMEA 193.5 MEUR
NET SALES BY REGION 2024
Americas: North and South America
APAC: Asia Pacic
EMEA: Europe, Middle-East, and Africa
35%
Americas 198.0 MEUR
31%
APAC 173.2 MEUR
34%
EMEA 193.5 MEUR
NET SALES BY REGION 2024
Americas: North and South America
APAC: Asia Pacic
EMEA: Europe, Middle-East, and Africa
35%
Americas 198.0 MEUR
31%
APAC 173.2 MEUR
34%
EMEA 193.5 MEUR
NET SALES BY REGION 2024
600
500
400
300
200
100
0
2020 2021 2022 2023 2024
NET SALES, MEUR
379.5
437.9
514.2
540.4
564.6
600
500
400
300
200
100
0
2020 2021 2022 2023 2024
ORDERS RECEIVED, MEUR
382.8
455.2
500.8
528.1
565.6
100
80
60
40
20
0
2020 2021 2022 2023 2024
OPERATING RESULT (EBIT), MEUR
44.8
50.1
62.5
66.6
82.9
240
200
160
120
80
40
0
2020 2021 2022 2023 2024
ORDER BOOK, MEUR
137.8
160.0
154.6
172.5
215.0
14
12
10
8
6
4
2
0
2020 2021 2022 2023 2024
R&D COSTS % OF NET SALES
14.0
12.6
12.1
12.0
12.5
2020 2021 2022 2023 2024
EMPLOYEES AT YEAR-END
2,800
2,400
2,000
1,600
1,200
800
400
0
1,939*
1,979
2,235
2,314
2,439
* Number of employees includes persons in long-time
absence as of January 1, 2021. Comparison period 2020
has been adjusted accordingly.
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Board of Directors’ Report 2024
In 2024, the world continued to face complex challenges, with increasing
geopolitical tensions and uncertainty in the business environment.
Regardless of the market challenges, Weather and Environment
business area’s net sales grew and Industrial Measurements business
area showed resilience in the challenging market environment. In 2024,
Vaisala’s net sales grew by 4% and were EUR 564.6 (540.4) million.
In constant currencies, net sales increased by 5%. Operating result
increased to EUR 82.9 (66.6) million and was 14.7 (12.3) % of net sales.
Thus, the company reached the financial targets of average 7% net sales
growth and 15% operating result margin set for a three-year strategy
period. The company continued long-term investments in R&D as well
as in sales and marketing. In addition, the new group-wide ERP system
with related systems went live at the beginning of the year and it was
further developed during the year. Earnings per share was EUR 1.76 (1.35).
Financial position remained strong. The Board of Directors proposes to
the Annual General Meeting that a dividend of EUR 0.85 (0.75) per share
be paid out of distributable earnings totaling EUR 30.8 (27.2) million.
Main key figures
EUR million 2024 2023 2022
Net sales 564.6 540.4 514.2
Gross margin, % 56.3 55.8 54.8
EBITA 90.3 74.7 70.7
% of net sales 16.0 13.8 13.8
Operating result (EBIT) 82.9 66.6 62.5
% of net sales 14.7 12.3 12.2
Result for the financial year 63.7 48.9 45.1
Earnings per share, EUR 1.76 1.35 1.24
Order book at the end of the financial year 215.0 172.5 154.6
Return on equity, % 22.1 18.9 18.7
Solvency ratio, % 52.4 61.3 58.1
Net debt 40.6 -28.2 7.9
Gearing, % 13.2 -10.5 3.2
Net working capital 75.1 72.9 82.4
Capital expenditure* 19.1 13.9 13.7
Cash flow from operating activities 78.9 83.8 29.8
Cash conversion 1.0 1.3 0.5
Research and development costs 68.6 67.7 62.4
% of net sales 12.1 12.5 12.1
Average personnel 2,368 2,327 2,141
* Excluding the impact of acquired businesses
Orders received and order book
EUR million 2024 2023 Change FX*
Orders received 565.6 528.1 7% 8%
Order book, end of period 215.0 172.5 25%
* Change with comparable exchange rates
In 2024, orders received increased by 7% compared to previous year
and totaled EUR 565.6 (528.1) million. Orders received grew in both
business areas. Orders received grew very strongly in meteorology, as
well as in power and energy market segment, but on the other hand
decreased very strongly in aviation and liquid measurements market
segments. Liquid measurements market segment is less than 10% of
Industrial Measurements business area. Orders received excluded EUR
25 million award for a project of airport weather systems and equipment
to modernize 14 Indonesian airports announced in August 2024. It will be
included in orders received once customer’s financing arrangements have
been confirmed.
At the end of 2024, order book totaled EUR 215.0 (172.5) million and
increased by 25% compared to previous year. Order book increased in both
Financial review 2024
Calculation of key figures is presented after the Board of Directors’ Report.
As of the beginning of 2023, Weather and Environment business area’s subscription business has
been excluded from orders received and order book. Year 2022 has been reported accordingly.
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business areas. Order book scheduled to be delivered during the current
year was EUR 164.6 (127.7) million.
Financial performance
EUR million 2024 2023 Change FX**
Net sales 564.6 540.4 4% 5%
Product sales 397.3 397.7 0%
Project sales 77.7 69.5 12%
Service sales 48.5 38.9 25%
Subscription sales 39.0 32.5 20%
Lease income 2.2 1.8 22%
Gross margin, % 56.3 55.8
EBITA 90.3 74.7
of net sales, % 16.0 13.8
Operating result 82.9 66.6
of net sales, % 14.7 12.3
R&D costs 68.6 67.7 1%
Amortization* 7.5 8.1
* Amortization and impairment of intangible assets and income and expenses related to
(non-operative) earn-outs related to acquired businesses.
** Change with comparable exchange rates
In 2024, net sales increased by 4% compared to previous year and totaled
EUR 564.6 (540.4) million. In constant currencies, net sales increased
by 5%. Operations outside Finland accounted for 98 (98) % of net sales.
Excluding recent acquisitions, net sales increased by 13 % and subscription
sales by 17% compared to previous year. Net sales grew in Weather and
Environment business area. In Industrial Measurements business area, net
sales were flat compared to previous year yet improved during the year.
Service sales increased especially in Industrial Measurements business
area. In the first quarter, net sales were affected negatively by combined
impact of the industrial actions in Finland and ramp-up of the new ERP
(Enterprise Resource Planning) system. After that, similar disturbances
have not been present anymore.
Gross margin improved compared to previous year and was 56.3
(55.8) % mainly due to growth in net sales.
In 2024, operating result (EBIT) increased from previous year following
growth in net sales and improvement in gross margin and totaled EUR
82.9 (66.6) million, 14.7 (12.3) % of net sales. Operating expenses were at
previous year’s level.
In 2024, financial income and expenses were EUR -2.4 (-3.7) million. This
was mainly a result of valuation of foreign currency denominated items,
currency hedging and interest expenses. Income taxes were EUR 17.0 (14.2)
million and effective tax rate was 21.1 (22.5) %. Result before taxes was EUR
80.8 (63.1) million and result for the period EUR 63.7 (48.9) million. Earnings
per share was EUR 1.76 (1.35).
Statement of financial position and cash flow
Vaisala’s financial position remained strong in 2024. At the end of
December, statement of financial position totaled EUR 589.4 (442.8)
million. Net debt amounted to EUR 40.6 (-28.2) million. Cash and cash
equivalents totaled EUR 88.8 (90.3) million. Dividend payment, decided by
the Annual General Meeting on March 26, 2024, totaled EUR 27.2 million. On
December 31, 2024, Vaisala had interest-bearing borrowings totaling EUR
105.0 (50.0) million. In April 2024, Vaisala made a voluntary prepayment of
EUR 15.0 million regarding EUR 50.0 million unsecured term loan initially
signed on March 31, 2023. The loan is due in 2026. The loan has a financial
covenant (gearing) tested semi-annually. In December 2024, Vaisala signed
a EUR 70 million unsecured term loan agreement with one of its core banks
for general corporate and working capital purposes as well as to finance
the acquisition transaction in the United States. The loan was fully utilized.
The loan is due in 2027. The loan has a financial covenant (gearing) tested
semi-annually as of 2025. Vaisala had not issued any domestic commercial
papers on December 31, 2024, as at the end of 2023. Vaisala has also a
EUR 50 million committed revolving credit facility, which was undrawn on
December 31, 2024, as at the end of 2023. Vaisala exercised first of the two
one-year extension options of the facility in third quarter and hence the
revolving credit facility expires on October 5, 2027. In addition, interest-
bearing lease liabilities totaled EUR 24.5 (12.1) million. Interest-bearing
lease liabilities include lease liability related to new office facility in Boston
totaling to EUR 12.7 million.
In 2024, cash flow from operating activities decreased to EUR 78.9
(83.8) million despite increased net result. This was mainly a result of
increase in net working capital.
Capital expenditure and acquisitions
In 2024, capital expenditure in intangible assets and property, plant,
and equipment (excluding the impact from business combinations)
totaled EUR 19.1 (13.9) 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. In addition,
capital expenditure in intangible assets and property, plant and equipment
related to acquisition of WeatherDesk business totaled to EUR 65.7 million
and acquisition of subsidiaries (net of cash) totaled to EUR 20.9 million.
In 2024, Vaisala started building an automated logistics center in
Vantaa, Finland. The total estimated value of the investment is around EUR
10 million and it will be recognized in the statement of financial position
during 2024 and 2025.
Depreciation, amortization, and impairment were EUR 24.3 (24.3)
million. This included EUR 7.5 (8.1) million of amortization of identified
intangible assets related to the acquired businesses.
In December 2024, Vaisala acquired the assets of the US-based Maxar
Intelligence’s WeatherDesk business to expand its position in AI-led weather
forecasting and enhance its offering to the insurance, finance, and energy
segment. The purchase price was USD 70 million, and the acquisition was
financed mainly with interest-bearing debt. In 2023, the net sales of Maxar’s
WeatherDesk business amounted to USD 13 million, and the business has
strong profitability.
In October 2024, Vaisala acquired Speedwell Climate Ltd specializing
in climate and environmental risk transfer. With this acquisition, Vaisala
expands its subscription-based business and enters the insurance segment
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with tools for organizations to protect themselves from financial losses
caused by weather-related uncertainties. Speedwell Climate provides data
and software to structure, price, and settle index-based climate risk transfer
contracts. The company serves various industries, such as insurance,
investment funds, and renewable energy to protect their businesses from
weather-related risks. The company has been growing profitably, reaching
net sales of close to GBP 4 million in 2023.
In October 2024, Vaisala expanded its offering for renewable energy
customers by acquiring the UK-based software, weather monitoring
systems and services company Nevis Technology Limited. Nevis Technology
specializes in providing and maintaining helideck and environmental
monitoring systems and data portals for the offshore energy industry, with
offshore wind parks as a growing customer segment. The main applications
for its systems are offshore platforms and vessels.
Research and development
Product and technology leadership from sensors to digital solutions is
the very core of Vaisala. Vaisala’s measurement solutions are based on a
thorough understanding of its customers’ needs in diverse applications
from meteorology and renewable energy to industrial processes and
life science. Vaisala continuously collaborates with its customers and
partners to meet their measurement requirements and enable climate
action. In addition to its own research and development work, scientific
collaboration strengthens the company’s position as an industry pioneer
and an innovative technology leader. To develop its technology leadership
position, Vaisala invests strongly in its growth markets and makes
significant investments into research and development. In 2024, Vaisala’s
research and development costs were EUR 68.6 (67.7) million, 12.1 (12.5) %
of net sales. Research and development costs include both development of
new products as well as maintenance and further development of services
and existing products. During the past years, focus has shifted towards
development of new technologies and products.
Research and development costs are 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. More information on accounting
principles is available in Consolidated Financial Statements note 8.
Research and development expenditure.
Further information about major product launches in 2024 is presented
in the chapter Strategy and its implementation in 2024 in this Board of
Directors’ Report.
Personnel
The average number of personnel employed during January–December
2024 was 2,368 (2,327). At the end of December 2024, the number of
employees was 2,439 (2,314). 76 (77) % of employees were located in EMEA,
16 (16) % in Americas and 8 (7) % in APAC. 63 (66) % of employees were
based in Finland.
Number of employees by region
Dec 31, 2024 Dec 31, 2023 Change
Americas 402 360 42
APAC 185 167 18
EMEA (excluding Finland) 314 254 60
Finland 1,538 1,533 5
Total 2,439 2,314 125
Number of employees by function
Dec 31, 2024 Dec 31, 2023 Change
Sales and marketing 525 442 83
R&D 671 647 24
Operations 582 566 16
Services 386 390 -4
Administration 275 269 6
Total 2,439 2,314 125
Increase in number of employees reflects business growth. Recent
acquisitions increased the number of employees by 72 in Weather and
Environment business area.
In January–December 2024, personnel expenses totaled EUR 225.3
(210.9) million.
Vaisala has share-based incentive plans that are targeted to its key
employees. In 2024, expenses related to share-based incentive plans
totaled EUR 2.5 (3.4) million.
Further information about share-based incentive plans is available in
Consolidated Financial Statements note 7. Share-based payments.
2024 review by business area
Industrial Measurements business area
EUR million 2024 2023 Change FX**
Orders received 228.1 222.4 3% 3%
Order book, end of period 37.0 35.2 5%
Net sales 226.5 227.3 -0% 1%
Product sales 199.4 207.4 -4%
Service sales 27.1 19.9 36%
Gross margin, % 61.9 61.8
EBITA 48.9 46.8
of net sales, % 21.6 20.6
Operating result 47.9 45.2
of net sales, % 21.2 19.9
R&D costs 26.6 25.9 3%
Amortization* 1.0 1.7
* Amortization and impairment of intangible assets and income and expenses related to
(non-operative) earn-outs related to acquired businesses.
** Change with comparable exchange rates
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Industrial Measurements business area’s 2024 orders received increased
by 3% compared to previous year and totaled EUR 228.1 (222.4) million.
Orders received increased very strongly in power and energy market
segment and somewhat in industrial instrument market segment. Orders
received were at previous year’s level in life science market segment and
decreased very strongly in liquid measurements market segment.
At the end of 2024, Industrial Measurements business area’s order
book amounted to EUR 37.0 (35.2) million and increased by 5% compared
to previous year. Order book scheduled to be delivered during the current
year was EUR 32.9 (31.6) million. Order book increased in power and
energy as well as in life science market segment and decreased in liquid
measurements market segment. Order book in industrial instrument
market segment was at previous year’s level.
In 2024, net sales were at previous year’s level and totaled EUR 226.5
(227.3) million. In constant currencies, net sales increased by 1% compared
to previous year. Net sales increased very strongly in power and energy
market segment and decreased somewhat in life science and liquid
measurements market segments. Net sales in industrial instruments
market segment were at previous year’s level. Very strong growth of service
sales was a result of previous years’ sales levels and followed growth of
installed base as well as improved transparency.
Gross margin was at previous year’s level 61.9 (61.8) %.
Industrial Measurements business area’s 2024 operating result (EBIT)
increased compared to previous year following sales mix and totaled EUR
47.9 (45.2) million, 21.2 (19.9) % of net sales. Operating expenses decreased
somewhat compared to previous year.
Weather and Environment business area
EUR million 2024 2023 Change FX**
Orders received 337.6 305.8 10% 11%
Order book, end of period 178.0 137.3 30%
Net sales 338.2 313.1 8% 8%
Product sales 197.9 190.3 4%
Project sales 77.7 69.5 12%
Service sales 21.4 19.0 13%
Subscription sales 39.0 32.5 20%
Lease income 2.2 1.8 22%
Gross margin, % 52.6 51.5
EBITA 41.3 27.5
of net sales, % 12.2 8.8
Operating result 34.8 21.1
of net sales, % 10.3 6.7
R&D costs 42.0 41.8 1%
Amortization* 6.5 6.4
* Amortization and impairment of intangible assets and income and expenses related to
(non-operative) earn-outs related to acquired businesses
** Change with comparable exchange rates
Weather and Environment business area’s 2024 orders received increased
by 10% compared to previous year and totaled EUR 337.6 (305.8) million.
Orders received grew very strongly in meteorology market segment and
slightly in renewable energy market segment. Orders received decreased
very strongly in aviation market segment and were at previous year’s level
in roads market segment. Orders received excluded EUR 25 million award
for a project of airport weather systems and equipment to modernize
14 Indonesian airports announced in August 2024 and it will be included
in orders received once customer’s financing arrangements have been
confirmed.
At the end of 2024, Weather and Environment business area’s order
book amounted to EUR 178.0 (137.3) million and increased by 30%
compared to previous year. Order book scheduled to be delivered during
the current year was EUR 131.7 (96.1) million. Order book increased in
meteorology and roads market segments and decreased in renewable
energy and aviation market segments. Very strong growth of order book
was mainly driven by large project orders received during the year.
In 2024 net sales increased by 8% compared to previous year and were
EUR 338.2 (313.1) million. In constant currencies, net sales increased by 8%.
Excluding recent acquisitions, net sales increased by 8 % and subscription
sales by 17% compared to previous year. Net sales grew very strongly in
aviation market segment and slightly in renewable energy market segment
and were at previous year’s level in roads market segment. Net sales in
meteorology market segment decreased slightly compared to previous
year.
Gross margin increased to 52.6 (51.5) % mainly following growth in net
sales and sales mix.
Weather and Environment business area’s 2024 operating result (EBIT)
increased compared to previous year following growth in net sales and
improvement in gross margin and totaled EUR 34.8 (21.1) million, 10.3 (6.7)
% of net sales. Operating expenses increased somewhat compared to
previous year due to M&A and other one-off expenses.
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Strategy and its implementation in 2024
Vaisala’s strategy focuses on driving sustainable growth and global
leadership in measurement instruments and intelligence for climate
action. Through its products and technologies, the company enables
its customers to optimize processes, drive the energy transition, and
care for the safety and well-being of people and societies worldwide.
The company’s launched its new brand and updated purpose Taking
every measure for the planet in February. The new purpose emphasizes
the company’s active role in enabling data-driven climate action. This
communicates how our measurement technologies provide customers
with relevant data to improve their operations and create a positive climate
impact, and to show our full commitment to sustainability.
At the center of the strategy are four success drivers: deep customer
understanding and application know-how; product and technology
leadership from sensors to digital solutions; excellence in supply chain;
and purpose-driven culture and talent. To complement the success drivers
of its current strategy, the company identified four strategic priorities for
execution. Vaisala continues its growth in industrial measurements with
breakthrough technologies, grows by expanding in energy transition as
well as building recurring revenue in data business, drives profitability as a
global leader in weather systems, and simplifies and scales its operations
for greater impact and efficiency. The strategy is implemented by
managing different types of businesses in a different way by focusing on
profitability and/or growth.
In 2021, Vaisala set long-term targets of an average annual net sales
growth of 7% and an operating result margin (EBIT) of 15% by the end of
the period. As the strategy period ended, the company reached the targets.
Vaisala’s average net sales growth during the three-year period was 9% and
the year 2024 EBIT was 15%.
Vaisala’s work in enabling climate action and decreasing emissions
continued when the Science Based Targets initiative (SBTi) approved
Vaisala’s near-term science-based emission reduction targets in April
2024. In accordance with the targets, Vaisala commits to reduce absolute
scope 1 and 2 GHG emissions 52% by 2030 from a 2021 base year. Vaisala
also commits to reduce scope 3 GHG emissions from purchased goods
and services, upstream transportation and distribution, business travel,
employee commuting, and use of sold products 52% per million EUR value
added within the same period.
As part of Vaisala’s sustainability work and new purpose, the company’s
term loan and committed revolving credit facility were tied to sustainable
development in March 2024.
Vaisala took 38th place in the first edition of World’s Best Companies
– Sustainable Growth study by TIME Magazine. There were nine Finnish
companies on the list. The study was implemented together with Statista,
and the evaluation was based on revenue growth, financial stability, and
taking care of the environment.
Industrial Measurements business area
Industrial Measurements business area focuses on product leadership and
aims to grow profitably with breakthrough technologies and by expanding
in energy transition. In 2024, the business area showed resilience in a
challenging market environment, and its net sales were on the same
level as the previous year. Net sales growth in power and energy market
segment was very strong, while net sales in life science market segment
decreased somewhat compared to the previous year.
In 2024, Industrial Measurements business area announced a new
cloud-based monitoring software viewLinc Cloud to help life science
companies save resources.
The business area also launched a new solution for industrial indoor
and process measurements. Vaisala Echo is an intelligent measurement
infrastructure, which connects Vaisala’s measurement devices and
monitoring software. Newest data logger VDL200 provides secure
environmental monitoring for GxP compliance.
In addition, Industrial Measurements business area launched a new
measurement product, MGP241, that measures carbon dioxide and
humidity and is specifically designed to bring transparency to carbon
capture, storage, and utilization projects.
Weather and Environment business area
Weather and Environment business area’s strategy is to seek growth by
expanding in energy transition as well as in subscription-based data and
software business. In the more mature market of weather systems, such as
meteorology and aviation, the business area seeks to maintain its position
as a global market leader focusing also on driving profitability. In 2024,
the growth of the business area continued, and profitability improved
significantly. The growth of subscription sales continued very strong.
During the year, the business area announced two new large weather
system projects. Vaisala was selected to deliver 18 weather radars to the
State Meteorological Agency of Spain. The weather systems modernization
project for 14 airports in Indonesia was not included in the order book at
the end of 2024. In addition to solid organic growth, the business area
expanded future prospects through three acquisitions: Speedwell Climate,
Nevis Technology, and Maxar Intelligence’s WeatherDesk. With these
acquisitions, the business area accelerated play in energy transition and
subscription-based data business further.
Weather and Environment business area launched Vaisala WM80, a new
robust ultrasonic wind sensor for optimized wind turbine and maritime
performance.
The business area also launched a high-precision air quality sensor
AQT560 to combat urban air pollution.
Weather and Environment business area introduced Vaisala Compass,
a weather-based decision-making platform for the renewable energy
industry to mitigate challenges related to weather fluctuation and
uncertainty.
In addition, Weather and Environment business area announced multi-
GNSS support and industry-first message authentication. These features
help meteorological agencies defend against hybrid threats, such as GPS
interference and cyberattacks.
Vaisala Xweather announced that it delivers worldwide real-time
air quality data to drivers of BMW Group cars. Vaisala Xweather also
introduced a new data offering aimed at electric vehicle makers to help
eliminate weather surprises from range predictions.
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Production
Vaisala's Operations organization sources, manufactures, and ships all
Vaisala’s products for both business areas and develops Vaisala Production
System. In 2024, Operations prepared for future growth by scaling up the
production capabilities. The company started building a new automated
logistics center on our Vantaa campus, Finland. The company expects
the new facility to be fully operational by the end of 2025. It will combine
all various logistics functions currently dispersed across Vantaa campus
into one centralized location, streamlining operations. The investment will
double the logistics capacity and enable the conversion of current logistics
space into production use. Operations continued the cleanroom renewal
enabling the adoption of new production technologies and upgrading the
quality of the existing facilities.
Operations continued advancing the Smart Factory concept focusing
on scalability, increasing automation, and building new data capabilities.
Operations are also actively working to enhance the sustainability of our
supply chain. The Operations team also implemented emission reduction
measures by transitioning from air to road transport in Europe and
sourcing process gases with lower carbon footprint.
Process development
During a couple of past years, Vaisala has invested in the development
and implementation of new ERP system. The new ERP system with
related systems went live at the beginning of 2024 and its development
was continued during the year. The development work will continue in
2025. During 2024, the company also started preparations for corporate
sustainability reporting (CSRD, Corporate Sustainability Reporting
Directive), which is part of this Board of Directors’ Report.
Long-term financial targets
Vaisala published new long-term targets in November 2024. In line with the
strategic objectives, Vaisala’s new long-term financial targets are average
sales growth 7% (earlier 7%), systematically improving EBITA % (earlier
EBIT 15%), and to maintain strong cash conversion over time (new target).
Vaisala does not consider the long-term financial targets as market
guidance for any given year.
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, aims
to ensure the safety of the company’s employees, operations, and products
as well as the continuity and compliance of business activities.
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 material risks
are considered by the Vaisala Leadership Team per processes regularly
during the year and also reviewed by the Audit Committee on a regular
basis.
Vaisala is exposed in its operations to strategic, hazard, operational, and
financial risks, which may originate from the company’s own operations or
changes in the business environment. If risks materialize, they may have
negative impact on Vaisala’s business or financial position and thus, on
company’s value.
The most significant strategic risks for Vaisala are unstable geopolitical
escalation, prolonged slow economic growth, as well as change in market
dynamics and trends. Vaisala’s wide product portfolio and geographical
coverage decentralizes the impact of risks on one customer segment. To
maintain its competitiveness, Vaisala invests in R&D efforts to maintain the
product portfolio’s competitive advantage and focuses and develops the
business towards growing opportunities, monitors pricing on the markets
and manages costs in line with the development of the business. Through
scenario work, Vaisala prepares for different alternatives and actively
monitors changes in geopolitics and trade policies.
The most significant hazard risks for the company are long disruption
in sensor manufacturing and serious employee accident caused by
working conditions. A long disruption of sensor manufacturing would
have a major impact on the delivery capability of both business areas. The
company manages this risk with emergency stock of sensor components,
management of production equipment and spare parts, as well as safety of
facilities. Accidents caused by hazardous working conditions are prevented
with continuous development of occupational safety, job hazard analysis,
emergency procedures, improvements in accident tracking, safety policies,
and training. A disaster event at factory can cause a long disruption in
production, which can result in the loss of long-term customers. Vaisala
prepares for these kinds of situations by maintaining emergency buffers
and by proactive risk prevention actions, such as firewalls and leakage
sensors. Vaisala prepares for risks related to external events by geographic
diversity of business and by monitoring the business environment as well
as by risk assessment of business opportunities.
Vaisala is exposed to operational risks such as cyber risk and long
unavailability of IT systems. Cyberattack may interrupt operations or
digital services, cause financial loss or loss of trade secrets or personal
data. Vaisala maintains Information Security Management System. Long
downtime of IT solutions leads to interruptions in operations, especially in
order-to-delivery process. Vaisala has 24/7 support in case of any issues
with IT systems and maintains disaster recovery plans for all critical
platforms.
The most essential financial risks for Vaisala are currency risk, interest
rate risk, liquidity and refinancing risk as well as credit risk. Vaisala’s
objective is to limit the impact of these risks on statement of income,
statement of financial position and cash flow statement. Vaisala manages
these financial risks among other with currency hedging, by maintaining
sustainable capital structure and debt maturity profile, by securing
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committed credit facility, by requiring high credit rating of financial
counter parties and making low risk and limited investment maturities,
and by granting secured terms of payment as well as implementing credit
check for its diverse customer pool.
Further information about risk management and risks is available in
the section Governance/Risk Management of Governance and Financial
Review 2024, in Consolidated Financial Statements note 19. Financial risk
management, and on the company’s website at vaisala.com.
Group structure
Vaisala’s headquarters are located in Vantaa, Finland. On December 31,
2024, Vaisala had subsidiaries in Australia, Brazil, Canada, China, Finland,
France, Germany, India, Japan, Kenya, Korea, Malaysia, Mexico, Sweden,
United Kingdom, and United States. The parent company has branches in
Argentina and Colombia.
Board of Directors
The Annual General Meeting held on March 26, 2024, confirmed that the
number of the Board members is nine.
Members of the Board of Directors on December 31, 2024
• Ville Voipio, Chair
• Raimo Voipio, Vice Chair
• Annica Bresky
• Petri Castrén
• Antti Jääskeläinen
• Jukka Rinnevaara
• Lotte Rosenberg
• Kaarina Ståhlberg
• Tuomas Syrjänen
Leadership Team
In December 2024, Vaisala appointed Lorenzo Gulli as Executive Vice
President, Strategy and M&A. He joined Vaisala and the Vaisala Leadership
Team in January 2025 and reports to the President and CEO Kai Öistämö.
In October 2024, Vaisala announced changes in its leadership
team which were valid as of January 2025. Jarkko Sairanen, previously
EVP Weather and Environment, was appointed to lead the Industrial
Measurements business area. Sampsa Lahtinen, EVP Industrial
Measurements, had decided to retire at the end of 2024. The business
leadership for Vaisala’s Weather and Environment business area was
divided between Anne Jalkala and Samuli Hänninen. Anne Jalkala,
previously Chief Strategy and Sustainability Officer, was appointed to lead
the Weather, Energy and Environment business, which is the global leader
in meteorology, aviation and roads winter maintenance and driving growth
in renewable energy. Samuli Hänninen joined the Vaisala Leadership Team
and continues to lead the Xweather business. Vaisala’s financial reporting
structure remains unchanged and is based on its two reportable segments
Industrial Measurements and Weather and Environment. The Weather
and Environment reportable segment consists of the Weather, Energy and
Environment business and the Xweather business.
In February 2024, Vaisala appointed Girish Agarwal as Chief Digital and
Information Officer (CDIO) and member of the Vaisala Leadership Team.
He joined Vaisala in June 2024 and reports to the President and CEO Kai
Öistämö. Agarwal succeeded Olli Nastamo, EVP, Operational Excellence,
who retired in August 2024.
On December 31, 2024, Vaisala’s Leadership Team members were
• Kai Öistämö, President and CEO, Chair of the Leadership Team
• Girish Agarwal, Chief Digital and Information Officer
• Anne Jalkala, Chief Sustainability and Strategy Officer
• Sampsa Lahtinen, EVP, Industrial Measurements business area
• Timo Leskinen, EVP, Human Resources
• Heli Lindfors, Chief Financial Officer
• Vesa Pylvänäinen, EVP, Operations
• Jarkko Sairanen, EVP, Weather and Environment business area
• Katriina Vainio, EVP, Group General Counsel
Annual General Meeting 2024
Vaisala Corporation’s Annual General Meeting was held on March 26,
2024. 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, 2023.
Dividend
The Annual General Meeting decided a dividend of EUR 0.75 per share.
The record date for the dividend payment was March 28, 2024, and the
payment date was April 12, 2024.
Board of Directors
The Annual General Meeting confirmed that the number of Board
members is nine. Petri Castrén, Antti Jääskeläinen, Jukka Rinnevaara,
Kaarina Ståhlberg, Tuomas Syrjänen, Raimo Voipio, and Ville Voipio will
continue as members of the Board of Directors. Annica Bresky and Lotte
Rosenberg were elected as new members.
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 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, the Nomination Committee and any
other committee established by the Board of Directors for a term until
the close of the Annual General Meeting in 2025. In addition, members
of the Board residing outside Finland will be paid a meeting fee of EUR
1,000 per meeting attended in person. The meeting fees are paid in cash.
Possible travel expenses are reimbursed according to the travel policy of
the company.
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Auditor
The Annual General Meeting elected PricewaterhouseCoopers Oy as the
auditor of the company and APA Ylva Eriksson will act as the auditor with
the principal responsibility. The Auditors are reimbursed according to
invoice presented to the company.
Sustainability reporting assurer
The Annual General Meeting elected PricewaterhouseCoopers Oy as
the sustainability reporting assurer of the company and Ylva Eriksson,
Authorized Sustainability Auditor (KRT), as the assurer with principal
authority. The assurer is 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 26, 2025.
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 936,697 company's own series A shares.
The issuance of own shares may be carried out in deviation from the
shareholders' pre-emptive rights (directed issue). The authorization
entitles the issuance of treasury series A shares as a directed issue
without payment as part of the company's share-based incentive plan. The
subscription price of the shares can instead of cash also be paid in full or
in part as contribution in kind. The authorization is valid until September
26, 2025. The authorization for the company's incentive program shall
however be valid until March 26, 2028.
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, Lotte
Rosenberg, and Raimo Voipio as members of the Audit Committee. Antti
Jääskeläinen was elected as the Chair and Annica Bresky, Jukka Rinnevaara,
Tuomas Syrjänen, and Ville Voipio as members of the People and
Sustainability Committee. Ville Voipio was elected as the Chair and Annica
Bresky, Tuomas Syrjänen, and Raimo Voipio as members of the Nomination
Committee. The Chair and all members of the Audit Committee, People
and Sustainability Committee as well as Nomination Committee are
independent of the company. With the exception of Raimo Voipio and
Ville Voipio, all other members of the Committees are independent of
significant shareholders.
Shares and shareholders
Share capital and shares
Vaisala’s share capital totaled EUR 7,660,808 on December 31, 2024.
Vaisala has 36,436,728 shares, of which 3,626,853 are series K shares and
32,809,875 series A shares. During the year, number of series K shares
decreased by 3,104,239 and number of series A shares increased by
3,104,239 as the Board of Directors decided that 3,104,239 series K shares
were converted to series A shares. Series A shares are listed on the Nasdaq
Helsinki Ltd. 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 90.0% of the total number of shares
and 31.1% of the total votes. The series K shares represented 10.0% of the
total number of shares and 68.9% of the total votes.
Trading and share price development
In 2024, a total of 2,808,545 series A shares with a value totaling EUR 117.8
million were traded on the Nasdaq Helsinki Ltd. During the year, the share
price increased by 22% while OMXHCAPPI index decreased by 4%. The
closing price of the series A share on the Nasdaq Helsinki stock exchange
was EUR 48.40. Shares registered a high of EUR 50.00 and a low of EUR
32.60. Volume-weighted average share price was EUR 41.95.
The market value of series A shares on December 31, 2024, was EUR
1,580.6 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
1,756.2 million, excluding company’s treasury shares.
Treasury shares
In May 2024, the Board of Directors decided to exercise the authorization
of the 2024 Annual General Meeting to repurchase of company’s own
shares and to start repurchases of series A shares. The repurchases started
on May 23, 2024, and ended on September 30, 2024. During this period,
Vaisala repurchased a total of 18,855 own series A shares for an average
price of EUR 39.9093 per share. The shares were repurchased in public
trading on Nasdaq Helsinki Ltd. at the market price prevailing at the time
of purchase. The shares will be used as a reward payment for Vaisala’s
share-based incentive plans.
In August 2024, a total of 500 of Vaisala Corporation's treasury shares
were conveyed without consideration to a person participating in the
Restricted Share Unit Plan 2022–2026 under the terms and conditions of
the plan. The directed share issue was based on an authorization given by
the Annual General Meeting held on March 26, 2024.
In June 2024, a total of 1,750 of Vaisala Corporation's treasury shares
were conveyed without consideration to persons participating in the
Restricted Share Unit Plan 2022–2026 under the terms and conditions of
the plan. The directed share issue was based on an authorization given by
the Annual General Meeting held on March 26, 2024.
In March 2024, a total of 49,932 of Vaisala Corporation's treasury shares
were conveyed without consideration to the 43 key employees participating
in the Performance Share Plans 2021–2023 and 2022–2024 under the
terms and conditions of the plans. The directed share issue was based on an
authorization given by the Annual General Meeting held on March 28, 2023.
The total number of series A treasury shares on December 31, 2024,
was 152,149, which represents 0.46% of series A shares and 0.42% of total
shares.
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Major shareholders December 31, 2024
A shares K shares Total % of shares % of votes
Novametor Oy 2,778,000 998,358 3,776,358 10.36 21.59
Nordea Nordic Small Cap Fund 1,652,370 0 1,652,370 4.53 1.57
Weisell Foundation 1,440,000 0 1,440,000 3.95 1.37
Finnish Academy of Science and Letters 1,289,924 0 1,289,924 3.54 1.22
Voipio Mikko 1,100,798 167,514 1,268,312 3.48 4.23
Ilmarinen Mutual Pension Insurance Company 1,124,000 0 1,124,000 3.08 1.07
Voipio Raimo* 866,386 110,092 976,478 2.67 2.91
Caspers Anja 805,548 163,948 969,496 2.66 3.88
Voipio Tauno 772,186 65,638 837,824 2.30 1.98
Voipio Lauri 561,692 108,376 670,068 1.84 2.59
Voipio Riitta 561,692 108,376 670,068 1.84 2.59
Voipio Ville 398,772 119,712 518,484 1.42 2.65
Voipio Mari 414,486 96,712 511,198 1.40 2.23
Voipio Timo 391,484 119,712 511,196 1.40 2.64
Elo Mutual Pension Insurance Company 487,000 0 487,000 1.34 0.46
Total 14,644,338 2,058,438 16,702,776 45.84 52.98
Nominee registered shares** 8,659,342 0 8,659,342 23.77 8.22
* In addition to direct share ownership, Raimo Voipio’s controlled organization Imar Oy owned 56,000 series A shares.
** Includes 980,921 series A shares owned by Lannebo Fonder, which represented 2.69% of all shares and 0.93% of all votes (according to Lannebo’s notification).
Ownership structure (series A and K shares)
December 31, 2024
Shares % of shares
Households 14,671,794 40.27
Nominee registered and outside Finland 8,709,942 23.90
Private companies 4,952,351 13.59
Financial and insurance institutions 3,250,482 8.92
Non-profit organizations 3,064,223 8.41
Public sector organizations 1,787,936 4.91
Total 36,436,728 100.00
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Ownership distribution (series A and K shares) December 31, 2024
Share-
holders
% of share-
holders Shares
% of
shares
1–100 9,603 61.30 339,952 0.93
101–500 4,057 25.90 1,045,306 2.87
501–1,000 987 6.30 739,441 2.03
1,001–5,000 785 5.01 1,652,260 4.54
5,001–10,000 94 0.60 655,131 1.80
10,001–50,000 83 0.53 1,796,113 4.93
50,001–100,000 24 0.15 1,659,000 4.55
100,001–500,000 17 0.11 3,814,470 10.47
500,001– 16 0.10 24,735,055 67.89
Total 15,666 100.00 36,436,728 100.00
Nominee registered 8
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, 2024, the Board of Directors held and controlled
1,286,320 (995,971) series A shares. These shares accounted for 3.9 (3.4)
% of series A shares and 3.5 (2.7) % of total shares. The number of series

total number of series A shares held and controlled by the Board increased
and the total number of series K shares decreased accordingly, because
series K shares were converted to series A shares. Total votes attached to
the series A and K shares held and controlled by the Board were 5,882,400
(11,476,131), which accounted for 5.6 (7.0) % of the total votes of all shares.
The total votes attached to the shares held and controlled by the Board
decreased, because the total votes of all shares decreased during the year
following conversion of series K shares to series A shares.
On December 31, 2024, Kai Öistämö, the President and CEO, held and
controlled 21,701 (14,860) series A shares but no series K shares. Other
Leadership Team members held and controlled 150,476 (133,161) series

Corporate Governance Statement includes more details on the
shareholdings of the Board of Directors and the Leadership Team.
Share key figures are presented in Key figures section after Board of
Directors’ Report.
Further information about Vaisala’s shares and shareholders are
presented on the company’s website at vaisala.com/investors.
Donations
Vaisala continues its collaboration with the Colorado State University (CSU)
in the US in the field of weather radars, among others. In 2023, Vaisala’s
Board of Directors renewed the annual donation of USD 25,000 to the
university for 2023–2025.
EU sustainable finance taxonomy
The indicators required by the EU Taxonomy Regulation are reported in the
sustainability statement included in this Board of Directors’ Report.
Corporate Governance Statement
Corporate Governance Statement will be published as a part of this Board
of Directors’ 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 Governance and
Financial Report 2024 as well as a separate report on the company’s
website at vaisala.com/investors.
Near-term risks and uncertainties
Changes in geopolitical situation, interest rates and inflationary
environment may affect industrial investments and economic situation
and increase risk of achieving Vaisala’s financial targets. Possible tariffs
or trade war between the US and Europe may have an impact on Vaisala’s
financial performance.
Industrial actions in Finland may cause disruptions in Vaisala’s
operations and deteriorate Vaisala’s delivery capability. 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. Temporary component shortage may
cause delays or interruptions in deliveries or generate additional material
costs. Cyber risk and long disruptions in IT systems may impact operations
and delivery capability.
Vaisala’s capability to successfully complete investments, acquisitions,
divestments and restructurings on a timely basis and to achieve related
financial and operational targets includes uncertainties and risks, which
may negatively impact net sales and profitability.
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
in Corporate Governance/Risk management section of Governance and
Financial Review 2024 and on the company’s website at vaisala.com.
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Business outlook for 2025
Vaisala estimates, excluding potential significant changes in market
conditions, that its full-year 2025 net sales will be in the range of EUR
590–620 (2024: 565 million) million and its EBITA will be in the range of
EUR 90–105 (2024: EUR 90 million) million.
As of 2025, in its outlook, Vaisala has changed EBIT to EBITA to align with
its long-term targets.
Market outlook for 2025
Markets for industrial and life science market segments started to
gradually improve in H2/2024. Similar improvement is expected in 2025.
Power market segment is expected to grow.
Markets for the more mature markets, meteorology, aviation, and roads,
are expected to be stable. Market for renewable energy is expected to be
stable.
Board of Directors’ proposal for dividend
The parent company’s distributable earnings amount to EUR
221,935,585.08 of which the result for the period is EUR 58,240,409.02.
The Board of Directors proposes to the Annual General Meeting that
a dividend of EUR 0.85 per share be paid out of distributable earnings
totaling EUR 30.8 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 2025
Vaisala Corporation’s Annual General Meeting will be held on Tuesday
March 25, 2025, 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
20, 2025, 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 17, 2025
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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Vaisala’s general governance principles
Vaisala’s corporate governance is based on and complies with the laws
of Finland and Vaisala’s Articles of Association. Consolidated financial
statements and other financial reports are prepared according to the
International Financial Reporting Standards (IFRS), approved by the EU.
The company complies with the rules, regulations, and guidelines for
listed companies issued by Nasdaq Helsinki Ltd, Corporate Sustainability
Reporting Directive (CSRD) (Directive (EU) 2022/2464), and the Finnish
Supervisory Authority as well as the Finnish Corporate Governance Code
2025 published by the Securities Market Association (available at www.
cgfinland.fi/en/).
Vaisala Board of Directors has approved this Corporate Governance
Statement in its meeting on February 17, 2025. PricewaterhouseCoopers
Oy, audit firm, the company’s auditor, has verified that the statement has
been issued and that the general description of internal audit and risk
management systems associated with the financial reporting process
conforms to the same in financial statements.
Governing bodies
The General Meeting, the Board of Directors, and the President and CEO,
assisted by the Leadership Team, are responsible for the governance of
the Vaisala Corporation.
Leadership Team
President and CEO
Board of DirectorsExternal audit
Audit
Committee
People and
Sustainability
Committee
Nomination
Committee
Strategic
Planning
Committee
Financial
and internal
control
Risk
manage-
ment
Internal
audit
General Meeting
General meeting
The General Meeting is the supreme decision-making body of Vaisala,
in which all the shareholders of the company can participate in the
supervision and control of the company and exercise their right to vote,
speak, and ask questions. The Annual General Meeting is held once a year
before the end of June on a date determined by the Board of Directors.
It decides on the matters stipulated in the Finnish Limited Liability
Companies Act and the Articles of Association. The resolutions are mainly
made with simple majority of votes.
The Chair of the Board of Directors, members of the Board of Directors,
and the President and CEO are present at the Annual General Meeting.
The auditor is present at the Annual General Meeting. Board member
candidates are present at the Annual General Meeting where they are
elected. If the above-mentioned person or persons fail to attend the
Annual General Meeting, Vaisala notifies the General Meeting of such
non-attendance. The members of the Leadership Team participate in the
Annual General Meeting, if possible.
Participation in the General Meeting requires that the shareholder
is registered in Vaisala’s shareholder register, maintained by Euroclear
Finland Ltd, on the record date of the meeting and that they register for
the meeting by the date mentioned in the meeting notice.
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Shareholders are entitled to have an issue placed on the agenda of the
Annual General Meeting, provided that the issue can be decided upon by
the Annual General Meeting according to the Limited Liability Companies
Act. The request must be submitted in writing to the Board of Directors
early enough that the issue can be included in the meeting notice. On
its website, the company announces the date by which the shareholder
must notify the Board of Directors of an issue to be added to the agenda
of the Annual General Meeting. The date is available by the end of the
previous financial year.
Vaisala publishes a notice of the Annual General Meeting no more
than two months before the record date and no less than three weeks
before the meeting on the company’s website or in any other way
that may be decided by the Board of Directors, or Vaisala may deliver
it directly to shareholders when required by law. In addition, Vaisala
publishes a meeting notice as a stock exchange release after the
Board of Directors has decided on the convening of the Annual General
Meeting. The agenda of the Annual General Meeting, proposals on
decisions, and meeting documents are available on the company’s
website at least three weeks prior to the meeting. Documents of the
Annual General Meeting will be held on the company’s website for at
least five years from the time of the meeting. Minutes of the meeting
will be published on the company’s website within two weeks of the
meeting.
Board of Directors
Competence, composition, and election
The Board of Directors is responsible for the administration and the
proper organization of the operations of the company. The Board
acts in accordance with the Articles of Association and the applicable
legislation as well as the instructions and recommendations of the
Financial Supervisory Authority and Nasdaq Helsinki Ltd. In accordance
with the Articles of Association, Vaisala Corporation's Board of Directors
comprises at least six and maximum nine members. The Annual General
Meeting elects all Board members.
The Board of Directors elects a Chair and a Vice Chair from among
its members. Under the Articles of Association, the term of the Board
members is one year. The term begins at the close of the General Meeting
in which the member is elected and ends at the close of the subsequent
Annual General Meeting following the member’s election.
Selection criteria, diversity, and the independence of the members
The primary goal in Board member election is to gather a team where
the joint capabilities of the members enable the Board to support the
development of the company's current and future business, impact, and
sustainability. The Board should be considered as a whole that is capable
of managing its tasks and duties in the best possible way. In addition, the
Board should consist of members of different genders, educational and
professional backgrounds, and nationalities. Vaisala's Board of Directors in
2024 represented adequate expertise and experience as well as diversity
on all the established goals as a team. Board members have experience
in sustainability, different technologies, data and AI, as well as various
businesses such as renewable energy, digital transformation, and different
fields of industry. Their education and current positions are described in
detail in the attached chart. Board members represented Finnish, Swedish,
and Danish nationalities.
The Board of Directors and the Nomination Committee are taking measures
to make sure the company meets the requirement that at least 40% of the
underrepresented gender hold non-executive director positions by June
2026 as defined in the Finnish Corporate Governance Code 2025. Women
represented 33% of non-executive director positions in 2024.
Vaisala complies with the Finnish Corporate Governance Code 2025 in
evaluating the independence of the members of the Board. The majority
of the members of the Board must be independent of the company,
and at least two members in this majority must be independent of the
company’s major shareholders. The Board evaluates the independence
of the members annually based on an overall evaluation. This evaluation
of a member takes into account information and analysis provided by the
member themself. All members of the Board in 2024 were independent
of the company. With the exception of Raimo Voipio and Ville Voipio, all
other members of the Board in 2024 were independent of significant
shareholders.
Meetings, duties, and decision-making
The Board of Directors convenes at least eight times a year and if otherwise
needed. The President and CEO and the Chief Financial Officer also attend
Board meetings. The other members of the Leadership Team attend Board
meetings as required at the invitation of the Board of Directors. The Board
of Directors may, on the basis of the Chair’s decision, establish working
groups from among its members in individual cases to prepare the matters
allocated for it in order to ensure the effective organization of the Board of
Directors’ work.
The Board of Directors operates in accordance with an approved written
charter, published on the company’s website. Meetings may, if necessary,
be held as conference calls, video meetings, or e-mail meetings. Minutes
of the meetings are compiled in English, with annually running numbering.
The General Counsel acts as the Secretary of the Board of Directors.
A member of the Board of Directors is not allowed to participate if they
are biased in that issue between themself and the company or between the
company and a third party when there is a possibility to achieve essential
advantage to themself, which may conflict with the company’s interest.
The members of the Board of Directors are bound by obligations
related to commercial and trade secrets as well as by the restrictions and
requirements of the Market Abuse Regulation (EU) N:o 596/2014 (MAR)
and the restrictions and obligations of Vaisala’s Insider Policy. In their
decision-making and other activities, the Board and its members must act
in accordance with the interest of the company and all its shareholders as
well as in accordance with the principles of due care.
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The Board will have a quorum when more than half of the members are
present. Decisions are made on a simple majority basis, and when the votes
are even, the Chair has the casting vote. When the votes for the election of
the Chair are even, the Chair is elected by drawing lots.
The President and CEO is responsible for the execution of the Board
of Directors’ decisions, oversees their implementation, and reports to the
Board on deficiencies or problems observed during the execution.
Main responsibilities of the Board of Directors are
• to decide on the election and dismissal of the President and CEO
• to decide on the employment terms of the President and CEO
• to decide on the election and dismissal of the members of the
Leadership Team and their job descriptions, including employment
terms, as well as the same of other direct reports of the President and
CEO, based on the President and CEO’s proposition
• to ensure that the company has organized internal control of accounting
and financial management as well as to monitor the effectiveness of
supervision
• to ensure monitoring, managing and overseeing material impacts, risks
and opportunities related to sustainability matters,
• to approve the results of the double materiality assessment for
sustainability reporting
• to determine the company’s strategy and oversee its implementation
and to approve the strategic plans of the business areas
• to determine the company’s long-term targets and to monitor their
implementation and to accept business areas’ long-term targets
• to assess the company’s and its business areas’ annual action plans
• to approve the company and its business areas’ financial targets
• to make business decisions, the value of which exceeds the approval
limit of the President and CEO according to the Approval Policy, such as
business reorganizations, acquisitions and divestitures, major contracts
and liabilities, investments, and financing arrangements
Member Member since Born Education Nationality Gender Main occupation
Shareholding
Dec. 31, 2024
Ville Voipio
Chair
2015
Chair since 2021 1974 D.Sc. (Tech.) Finnish Male
Professor of Practice, Sustainable Global Business,
Turku School of Economics, University of Turku
398,772 (A share)
119,712 (K share)
Raimo Voipio
Vice Chair
1989
Chair in 1994–2021 1955 M.Sc. (Eng.) Finnish Male Board professional
866,386 (A share)
110,092 (K share)
Annica Bresky 2024 1975
M.Sc. (Aquatic and
Environmental
Engineering), MBA Swedish Female Board professional 425 (A share)
Petri Castrén 2017 1962 LL.M., MBA Finnish Male CFO, Kemira Oyj 4,465 (A share)
Antti Jääskeläinen 2020 1972
M.Sc. (Eng.), M.Sc.
(Econ.), MBA Finnish Male President and CEO, Posti Group Oyj 2,064 (A share)
Jukka Rinnevaara 2019 1961 M.Sc. (Econ.) Finnish Male Board professional 2,784 (A share)
Lotte Rosenberg 2024 1972 MM.L., MBA Danish Female CEO, Carbon Recycling International (CRI) 25 (A share)
Kaarina Ståhlberg 2016 1966 LL.M Finnish Female General Counsel and M&A, Posti Group Oyj 7,265 (A share)
Tuomas Syrjänen 2019 1976 M.Sc. (El. Eng.) Finnish Male Program Director – AI Renewal, Futurice Oy 4,134 (A share)
Total
1,286,720 (A share)
229,804 (K share)
1,516,524 (total)
Shareholdings include also shares held by the Board of Directors’ controlled organizations.
In accordance with the recommendation 10, all members of the Board in 2024 were independent of the company. With the exception of Raimo Voipio and Ville Voipio,
all other members of the Board in 2024 were independent of significant shareholders.
Composition of the Board of Directors Dec. 31, 2024
• to review and approve the company’s most important policies and
instructions, such as Approval Policy, Treasury Policy, Disclosure
Policy, Dividend Policy, Risk Management Policy, Insider Policy, Code of
Conduct, and Anti-Corruption Policy
• to review and approve a Financial Statement Release, financial
statements, sustainability statement, and the Board of Directors’ Report
as well as Corporate Governance Statement
• to make a dividend proposal to the General Meeting
• to review and approve Interim Reports and Half Year Financial Report
• to monitor the evaluation and management of risks related to the
company’s strategy and business operations, and
• to decide on Remuneration Policy and management remuneration and
incentive systems.
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Members of the Board of Directors in 2024
During January 1–March 26, 2024, the Board of Directors comprised
eight members. The Chair of the Board of Directors was Ville Voipio, the
Vice Chair was Raimo Voipio, and the members were Petri Castrén, Antti
Jääskeläinen, Petra Lundström, Jukka Rinnevaara, Kaarina Ståhlberg, and
Tuomas Syrjänen. The Board of Directors’ secretary was General Counsel
Katriina Vainio.
The Annual General Meeting held on March 26, 2024, confirmed that the
number of Board members is nine. With the exception of Petra Lundström,
all other members continue as members of the Board of Directors. Annica
Bresky and Lotte Rosenberg were elected as new members. Ville Voipio was
elected as Chair of the Board and Raimo Voipio as Vice Chair of the Board.
The Board of Directors’ secretary is General Counsel Katriina Vainio.
Attendance in Board meetings 2024
Member
Attendance/
Number of meetings
Attendance
%
Ville Voipio 14/14 100%
Raimo Voipio 14/14 100%
Annica Bresky* 10/11 91%
Petri Castrén 14/14 100%
Antti Jääskeläinen 14/14 100%
Petra Lundström** 3/3 100%
Jukka Rinnevaara 14/14 100%
Lotte Rosenberg* 10/11 91%
Kaarina Ståhlberg 14/14 100%
Tuomas Syrjänen 14/14 100%
* Member of the Board of Directors as of March 26, 2024
** Member of the Board of Directors until March 26, 2024
Board committees
The Board of Directors has three permanent committees: Audit
Committee, People and Sustainability Committee, and Nomination
Committee, as well as Strategic Planning Committee that was established
in 2023 for dealing with significant matters as needed. The members
and Chairs of the committees are appointed annually from among the
members of the Board of Directors in accordance with the charter of
the respective committee with the exception of the Strategic Planning
Committee, members of which are nominated among the members of the
Board of Directors as needed. The diversity of the know-how, experience,
and opinions of the committee members contributes to open discussion
and the committee’s ability to address the issues under its responsibility in
a comprehensive manner.
Audit Committee
The Audit Committee assists the Board of Directors in supervising the
company’s accounting and asset management, risk management, as well
as in organizing internal controls and external and internal audits. The Audit
Committee reviews Interim Reports, Half Year Financial Report, Financial
Statement Release and financial statements, sustainability statement,
as well as Board of Directors’ Report. The Audit Committee manages its
tasks in accordance with the charter approved by the Board of Directors,
the Securities Market Association’s Finnish Corporate Governance Code,
as well as the applicable laws and regulations. The Audit Committee’s
charter is published as part of the charter of the Board of Directors on
the company’s website. The Audit Committee reports regularly about its
meetings to the Board of Directors.
The Audit Committee comprises at least three members, appointed
annually by the Board of Directors from among its members. The members
of the committee must be independent of the company, and at least one
member must also be independent of significant shareholders of the
company. A member of the Audit Committee may not participate in the
company’s or its group company’s daily management. Members of the
Audit Committee have sufficient expertise and experience in matters
forming part of the Audit Committee’s duties and of the mandatory tasks
related to audit.
People and Sustainability Committee
The People and Sustainability Committee is responsible for preparing
people, sustainability, and ESG topics for the Board of Directors. The
committee reviews Vaisala's plans for employee development, talent
attraction and management, succession planning, and their progress.
The People and Sustainability Committee proposes the compensation
of the President and CEO as well as top management, evaluation of the
performance of the President and CEO and the Leadership Team, and the
company remuneration and incentive plans to the Board of Directors. The
People and Sustainability Committee’s charter is available as part of the
charter of the Board of Directors on the company’s website. The People
and Sustainability Committee reports regularly about its meetings to the
Board of Directors.
The People and Sustainability Committee comprises at least three
members, appointed annually by the Board of Directors from among its
members. The majority of the committee members must be independent
of the company.
Nomination Committee
The Nomination Committee is responsible for preparing proposals to the
Annual General Meeting, and, if necessary, to an Extraordinary General
Meeting, for the election and remuneration of the members of the Board
of Directors and for identifying potential Board member candidates. The
committee’s charter is published as part of the Board of Directors' charter
on the company’s website. The committee reports regularly about its
meetings to the Board of Directors.
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President and CEO
The Board of Directors appoints the President and CEO. The President
and CEO is responsible for the day-to-day management of the company
in accordance with the guidelines and instructions given by the Board of
Directors and informs the Board of Directors of the development of the
company’s business and financial situation. The President and CEO is
responsible for ensuring that the company’s accounting is legally compliant
and that its financial affairs have been arranged in a reliable manner.
Kai Öistämö has been the President and CEO of Vaisala as well as the
Chair of Vaisala Leadership Team since October 1, 2020. He was born in
1964 and holds a Ph.D. degree in computer science.
Leadership Team
The President and CEO is the Chair of the Leadership Team. The Leadership
Team comprised nine members in 2024 and ten members as of 2025. The
Leadership Team meets at least once a month to assist the President and
CEO in developing and implementing the strategy, managing operational
business, as well as preparing matters handled by the Board. The
Leadership Team draws up annual operational and financial plans as well as
targets related to these plans, monitors the implementation of the plans,
and prepares major investments and acquisitions. The President and CEO
is responsible for the decisions made by the Leadership Team.
Members of the Leadership Team are responsible for implementing the
decisions in their own areas of responsibility. Members of the Leadership
Team are the President and CEO, the Executive Vice Presidents of three
business areas, the Chief Financial Officer, the Executive Vice President of
Operations, the Chief Digital and Information Officer, the Executive Vice
President of Human Resources, the Executive Vice President of Strategy
and M&A, as well as the Group General Counsel. The General Counsel acts
as secretary to the Leadership Team.
The Nomination Committee comprises at least three members,
appointed annually by the Board of Directors among its members. The
members of the committee must be independent of the company. The
President and CEO or a member of the Leadership Team cannot be
appointed to the Nomination Committee.
Strategic Planning Committee
The Strategic Planning Committee is responsible for formulating, reviewing
and evaluating strategic initiatives and special projects, and provides
recommendations on such initiatives for Board. The Committee is merely
temporary in its nature to address topical matters arising. The committee’s
charter is published as part of the charter of the Board of Directors on
the company’s website. When operative, the committee reports about its
actions to the Board of Directors.
The Strategic Planning Committee comprises at least three members
and is appointed by the Board of Directors among its members as needed.
The majority of members of the committee must be independent of the
company.
Committee members and their attendance in committee
meetings in 2024
Committee Member
Attendance/
Number of meetings
Attendance
%
Audit
Committee
Kaarina Ståhlberg (Chair) 6/6 100%
Petri Castrén 6/6 100%
Antti Jääskeläinen** 1/1 100%
Lotte Rosenberg* 3/5 60%
Raimo Voipio 6/6 100%
People and
Sustainability
Committee
Antti Jääskeläinen (Chair)* 4/4 100%
Annica Bresky* 4/4 100%
Petra Lundström** 1/1 100%
Jukka Rinnevaara 5/5 100%
Tuomas Syrjänen 5/5 100%
Ville Voipio 5/5 100%
Nomination
Committee
Ville Voipio (Chair) 5/5 100%
Annica Bresky* 4/4 100%
Tuomas Syrjänen 4/4 100%
Petra Lundström** 1/1 100%
Kaarina Ståhlberg** 1/1 100%
Raimo Voipio 5/5 100%
* Member of the Committee as of March 26, 2024
** Member of the Committee until March 26, 2024
All members of the Audit Committee, the People and Sustainability Committee,
as well as the Nomination Committee are independent of the company. With the
exception of Raimo Voipio and Ville Voipio, all other members of the Committees are
independent of significant shareholders.
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Girish Agarwal was appointed Chief Digital & Information Officer and
member of the Vaisala Leadership Team as of June 5, 2024. Olli Nastamo,
Executive Vice President, Operational Excellence, retired in August 2024.
Jarkko Sairanen was appointed Executive Vice President, Industrial
Measurements business area, and Anne Jalkala Executive Vice President,
Weather, Energy and Environment business, as of January 2025. Samuli
Members of the Leadership Team Dec. 31, 2024
Director
Member
since Born Education Nationality Gender Position at Vaisala
Shareholding
Dec. 31, 2024
Kai Öistämö 2020 1964 D.Sc. (Tech.) Finnish Male President and CEO 21,701 (A share)
Girish Agarwal 2024 1981 PhD, Artificial
Intelligence &
Business Model
Innovation
Swedish Male Chief Digital & Information Officer - (A share)
Anne Jalkala 2023 1982 D.Sc. (Tech.) Finnish Female EVP, Sustainability and Strategy 1,000 (A share)
Sampsa Lahtinen 2013 1963 M.Sc. (El. Eng.) Finnish Male EVP, Industrial Measurements business area 52,407 (A share)
Timo Leskinen 2021 1970 M.Sc. (Psy.),
M.Sc. (BMR)
Finnish Male EVP, Human Resources 4,323 (A share)
Heli Lindfors 2023 1984 M.Sc. (Econ.) Finnish Female CFO 1,000 (A share)
Vesa Pylvänäinen 2011 1970 M.Sc. (Econ.) Finnish Male EVP, Operations 27,409 (A share)
Jarkko Sairanen 2016 1963 M.Sc. (Ind. Eng.),
MBA
Finnish Male EVP, Weather and Environment business area 49,477 (A share)
Katriina Vainio 2017 1967 LL.M. Finnish Female EVP, Group General Counsel 14,860 (A share)
Total 172,177 (A share)
Shareholdings include also shares held by the Leadership Team’s controlled organizations.
Hänninen joined the Vaisala Leadership Team as Executive Vice President,
Xweather, as of January 2025. Sampsa Lahtinen, previous Executive Vice
President, Industrial Measurements business area, retired after 2024.
Lorenzo Gulli was appointed Executive Vice President, Strategy and M&A.
He joined the Vaisala Leadership and began in his role in January 2025.
Controls
Main features of the internal control and risk management systems
pertaining to the financial reporting process
Internal control seeks to ensure the company’s compliance with applicable
laws, regulations, Code of Conduct, and other recommendations as well as
the reliability of financial and operational reporting. Furthermore, internal
control seeks to safeguard the assets of the company and to ensure overall
effectiveness and efficiency of operations to meet strategic, operational,
and financial targets. Internal control practices are aligned with the risk
management process. The goal of risk management is to support strategy
and achievement of targets by anticipating and reacting to potential
business threats and opportunities.
Vaisala’s operating model of internal control and risk management
related to financial reporting provides assurance regarding the reliability of
financial reporting and that the financial statements have been prepared in
accordance with the applicable laws and regulations, accepted accounting
principles (IFRS), and other requirements for listed companies. The
principal components of internal control are control environment, risk
assessment, control activities, communications, and monitoring. Further
information on risk management can be found in the Board of Directors’
Report on pages 24–25
Control environment
The Board of Directors has the overall responsibility for the internal
control of financial reporting. The Board of Directors has established a
written charter that clarifies its responsibilities and regulates the internal
distribution of work of the Board of Directors and its committees. The
Board of Directors has appointed the Audit Committee whose task
is to ensure that established principles for financial reporting, risk
management, and internal control are followed and to enable appropriate
external audit. The President and CEO is responsible for organizing an
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performance. They ensure that monthly and quarterly financial reporting
follows the company’s policies and instructions and that all financial
reporting is delivered on time. The management follows up on the
achievement of targets through monthly management reporting routines.
The Chief Financial Officer regularly reports the results of the internal
control work and the efficiency of the control activities to the Audit
Committee.
Communications
Vaisala seeks to ensure that the internal and external communication of
the company is open, transparent, accurate, and timely. The Disclosure
Policy defines how and when information should be given and by whom
it is given. It also defines the accuracy and comprehensiveness of the
information in order to fulfill the communication obligations. Code
of Conduct, Approval Policy, Treasury Policy, Credit Policy, accounting
policies, and reporting instructions as well as Disclosure Policy and Insider
Policy are available on the company’s intranet.
Monitoring
The Board of Directors, the Audit Committee, the President and CEO,
and the internal audit monitor the effectiveness of internal control
related to financial reporting. The monitoring includes follow-up of
monthly financial reports, review of the rolling forecasts and plans, as
well as reports from internal audit and auditors. Internal audit assesses
the effectiveness of operations and adequacy of risk management and
reports the risks and development areas related to the internal control
processes. Internal audit compiles an annual audit plan and reports the
status of the plan and findings regularly to the Audit Committee and the
Leadership Team. Furthermore, the Chief Financial Officer, the General
Counsel, the internal audit, and the auditor coordinate audit planning and
monitoring regularly.
effective control environment and ongoing work on internal control as
regards financial reporting. The internal audit reports all relevant issues to
the Audit Committee and the President and CEO.
Internal audit focuses on developing and enhancing controls related to
financial reporting by proactively and consistently assessing the internal
control environment and by monitoring the effectiveness of the control
design. The most important internal steering instruments for financial
reporting comprise the Code of Conduct, Approval Policy, Treasury Policy,
Credit Policy, Disclosure Policy, accounting policies, and other reporting
instructions.
Risk assessment
Risk assessment as regards financial reporting aims to identify and
systematically evaluate the most significant threats at the levels of
Vaisala, reporting segments, functions, and processes. As a result of risk
assessment, the company defines control targets through which it seeks
to ensure that the fundamental requirements placed on financial reporting
are fulfilled. Information on the development of essential risk areas as
well as reactions to the risks are communicated regularly to the Audit
Committee.
Control activities
The President and CEO is operationally responsible for internal controls.
Internal control related to financial activities as well as control of the
business and management has been integrated into Vaisala’s business
processes. The company has defined and documented significant internal
control activities related to its financial statements reporting process
as part of business processes. Approval mechanisms, access rights,
segregation of duties, authorizations, verifications, reconciliations, and
follow-up of financial reporting are essential internal controls.
All business units have their own defined controller function whose
representatives participate in planning and evaluating the unit’s
General development measures in internal control and risk
management in 2024
In 2024, the internal audit carried out site, function, and process audits.
Audits provided input to the continual improvement of processes and
internal controls.
Related party transactions
Vaisala’s Board of Directors has defined principles for monitoring and
assessing related party transactions as well as keeps a record of related
parties. The Board of Directors resolves on all related party transactions
that are not made in the ordinary course of business or implemented under
arms-length terms.
On top of its affiliates, related parties of Vaisala are members of
Vaisala's Board of Directors and Leadership Team including the President
and CEO, as well as their spouses, partners, and children and legal
entities where a member of the Board or a member of the Leadership
Team has control. The Board of Directors has approved guidelines that
stipulate the approval process and reporting concerning related party
transactions. In accordance with the guidelines, Finance and Control as
well as Legal follow related party transactions as part of regular reporting
and control procedures. The Board of Directors will resolve all related
party transactions that are not made in the ordinary course of business or
implemented under arms-length terms.
Vaisala reports related party transactions in a note to financial
statements. Currently, Vaisala has no related party transactions that would
be material and in conflict with the ordinary course of business or not
implemented under arms-length terms.
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Insiders
Vaisala maintains project or event-specific insider lists when needed.
30-day closed window applies to the managers defined by the company
before publishing Interim Reports, Half Year Financial Report, Financial
Statement Release, and financial statements. The closed window ends on
the day following the publication day. The closed window also applies to
the persons engaged in the preparation of those reports. The managers
subject to transaction notification obligations comprise the Board of
Directors, the President and CEO, as well as members of the Leadership
Team. The company’s legal department is responsible for insider
management, training, as well as the creation and maintenance of project
and event-specific insider lists and monitoring of the same.
The President and CEO, Chief Financial Officer, and/or the General
Counsel, two together, can decide, based on an evaluation of the conditions
set out in the Market Abuse Regulation being met, to delay the publication
of insider information. When the company makes the decision to delay
disclosure, a project or event-based insider list regarding the inside
information will be established. Persons, to whom project or event-specific
inside information is disclosed, are entered into the project or event-
specific insider list.
Auditing and auditor’s fees
According to the Articles of Association, the company has one auditor,
who must be a public accountant or an audit firm, authorized by the
Finland Chamber of Commerce. If an audit firm is not chosen to perform
the auditing, a deputy auditor must be elected as well. The auditor’s term
of office covers the current fiscal year and expires at the close of the
following Annual General Meeting. The Annual General Meeting elects the
auditor and decides on the compensation paid to them.
The Annual General Meeting held on March 26, 2024, elected
PricewaterhouseCoopers Oy, audit firm, as the Auditor for a term of one
year. APA Ylva Erikssonacts as the auditor with the principal responsibility.
Sustainability reporting assurer
The Annual General Meeting elected PricewaterhouseCoopers Oy as
the sustainability reporting assurer of the company and Ylva Eriksson,
Authorized Sustainability Auditor (KRT), as the assurer with principal
authority.
Auditor’s fees
EUR million 2024 2023
Audit 0.6 0.6
Tax advice 0.0 0.0
Statements 0.0 0.0
Other fees 0.2 0.1
Total 0.9 0.7
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statement
2024
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General
information
ESRS 2 General disclosures 40
General basis for preparation of
the sustainability statement (BP-1) 40
Disclosures in relation to specific
circumstances (BP-2) 40
Sustainability strategy and governance 40
Strategy, business model and value
chain (SBM-1) 40
The role of the administrative, management
and supervisory bodies (GOV-1) 41
Information provided to and sustainability
matters addressed by the administrative,
management and supervisory bodies (GOV-2) 42
Integration of sustainability-related
performance in incentive schemes (GOV-3) 43
Risk management and internal controls over
sustainability reporting (GOV-5) 43
Interests and views of stakeholders (SBM-2) 43
Material sustainability matters 44
The identification and assessment of material
impacts, risks, and opportunities (IRO-1) 44
Material impacts, risks, and opportunities
and their interaction with strategy and
business model (SBM-3) 46
Disclosure requirements in ESRS covered
by the sustainability statement (IRO-2) 50
Data points that derive from other EU
legislation (IRO-2) 53
Statement on due diligence (GOV-4) 56
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ESRS 2 General disclosures
Sustainability is embedded in Vaisala’s long-term strategy and company
purpose: Taking every measure for the planet. As a global leader in measurement
instruments and intelligence for climate action, Vaisala provides customers
with devices and data to improve resource efficiency, drive the energy
transition, and care for the safety and well-being of people and societies
worldwide. With almost 90 years of innovation and expertise, our team of
over 2,300 experts is committed to taking every measure for the planet.
General basis for preparation of the sustainability statement
(BP-1)
This sustainability statement has been prepared on a consolidated basis,
with the same scope of consolidation as the consolidated financial
statements. This sustainability statement has been prepared in accordance
with the European Sustainability Reporting Standards (ESRS) and Chapter
7 of the Finnish Accounting Act.
This sustainability statement describes the material impacts, risks, and
opportunities associated with Vaisala’s direct and indirect business
relationships throughout its upstream and downstream value chains.
The information reported includes only the relevant sections of the value
chains for which the matter is material. The reported matters in this
sustainability statement are based on a comprehensive double materiality
assessment. The scope of Vaisala's policies is explained in each relevant
section of this sustainability statement, including policies that are relevant
to stakeholders in the upstream and downstream value chains. Specific
metrics, such as Vaisala's scope 3 greenhouse gas emissions, also include
value chain data, with the extent of the inclusion explained alongside each
reported metric.
Vaisala has not used the option of omitting specific information
corresponding to intellectual property, know-how, or innovation results.
In addition, Vaisala has not used the exemption allowing non-disclosure of
impending developments or matters under negotiation, as permitted by
articles 19a(3) and 29a(3) of Directive 2013/34/EU.
Disclosures in relation to specific circumstances (BP-2)
Greenhouse gas emission metrics include upstream and downstream value
chain data estimated using indirect sources. These metrics, including their
basis of preparation, level of accuracy, and any planned actions to improve
their future accuracy, are presented in the Environmental information part.
Changes in the preparation and presentation of information on Vaisala's
emissions reduction targets are also reported alongside greenhouse gas
emissions in the Environmental information part.
Vaisala has assessed that the current financial effects of its material
opportunities could be subject to a high level of measurement uncertainty.
Both climate change mitigation and the entity specific sustainability
matter safety, health, and well-being in society are broad topics. It is
currently not possible to definitively assess their impact on the company’s
financial position, financial performance, or cash flows during the
reporting period. The disclosed monetary amounts for current financial
effects are estimates made by Vaisala’s internal experts, including
members of the Leadership Team.
Sustainability governance and strategy
Strategy, business model and value chain (SBM-1)
Vaisala offers a comprehensive and leading product portfolio built on
proprietary technologies and application expertise. The company’s main
products and services include measurement sensors, instruments,
systems, software, digital solutions, and services for measuring weather,
environmental, and industrial conditions and processes. The company
serves a broad customer base, covering customers in both public and
private sectors across more than 150 countries. Details on Vaisala's
employees, including the number of employees by geographical areas, are
disclosed in the Social information part.
Currently, Vaisala has no sustainability goals specific to significant product
or service groups, customer categories, geographical areas, or stakeholder
relationships. However, Vaisala has set other sustainability targets, as
disclosed in the sections Targets related to climate change mitigation
and adaptation (E1-4), Targets related to material impacts, risks, and
opportunities on own workforce (S1-5), Targets related to material impacts,
risks, and opportunities on value chain workers (S2-5), and Targets related to
conflict minerals.
Elements of strategy that relate to or impact sustainability matters
Vaisala is at the intersection of several global megatrends. This gives us
an excellent position in the market, drives our strategy work, and offers
opportunities for sustainable growth and innovation. We aim to reinforce
our positive impact on both our customers and the planet while driving
sustainable growth. Our purpose, Taking every measure for the planet,
showcases our total commitment to sustainability and communicates
how our measurement technologies provide customers with relevant
data to improve their operations and make a positive climate impact. We
continuously collaborate with our customers and partners to meet their
measurement requirements and enable climate action. Vaisala’s motivated
and talented employees drive our success. We aim to continuously
enhance well-being and personal growth while building a diverse and
inclusive community that supports our business and positively impacts the
planet.
Business model
Vaisala operates multiple business models across several markets,
developing and selling measurement instruments and systems, weather
infrastructure projects, software, and services. We create value for our
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customers, employees, investors, society, and the environment in constant
interaction with our stakeholders. Our business leaves a positive handprint
on society through our customers, as our measurement solutions empower
them to make informed decisions and optimize their productivity and
processes in weather, environment, and industrial measurements. By
doing so, we can positively contribute to multiple megatrends and the
UN Sustainable Development Goals by increasing awareness, resource
efficiency, and safety in societies.
Vaisala's main success drivers are customer understanding and application
know-how, product and technology leadership, excellence in supply chain,
and purpose-driven culture and talent.
Vaisala uses materials such as electronics and metal components, process
materials such as chemicals, and different packaging materials to manufacture
and ship its products. One of the key success drivers in Vaisala’s strategy
is excellence in supply chain. Given Vaisala's broad business and product
portfolio, managing complexity and securing key inputs require effective
coordination with hundreds of suppliers and selected strategic partners.
To deliver on our customer promise and meet stakeholder expectations,
we must have a reliable and responsible supply chain. We set strict
requirements for our suppliers and work closely with them over the long
term, enabling both parties to develop their operations further.
Our instruments and intelligent solutions help to safeguard life and
property, while enabling decision making that facilitates productive,
efficient, and high-quality operations. Accurate measurements enable our
customers to make more reliable decisions and ensure safer and more
sustainable operations. We are a stable, sustainable, and globally operating
company. As a technological leader in our field, we aim for long-term
growth as well as a globally leading position in weather, environmental,
and industrial measurements by responding to different megatrends
and investing in research and development. We aim to distribute a stable
dividend which will increase in line with net profit development. Vaisala
offers versatile opportunities for talented and motivated professionals
who value purpose-driven work and continuous learning. We support
the well-being of our people and provide them with various learning
opportunities to grow and develop. Learning is part of everything we do. At
Vaisala, we aim to make a positive impact on society and the environment
by enabling data-driven climate action. We bring value to society through
accurate and reliable measurements and data as well as decision-making
support for authorities and businesses. This way we help societies become
better-informed, more resource efficient, and safer. In addition, we create
value through significant investments in R&D and collaboration with the
scientific community.
Value chains
Vaisala's products contain electronics. The electronics upstream
value chain begins with extracting raw materials, like minerals. The
upstream value chain also includes smelters and refineries, component
manufacturers, sub-suppliers, direct material suppliers, and contract
manufacturers. Vaisala’s direct suppliers are typically located close to
its manufacturing and R&D sites. We mainly purchase subassemblies,
components, and mechanical parts from Finland, other European
countries, and the United States. In addition to the sensor factory in
Helsinki, Finland, which produces sensors for all product families,
Vaisala’s manufacturing involves assembly, configuration, and calibration
of electronic and mechanical equipment. In project-based work,
subcontractors are used for civil works related to the installation of
products. The downstream value chain includes distributors and recycling
at the end of a product’s lifecycle. End-users of Vaisala's products are
companies and public sector entities.
Vaisala Xweather’s Data as a Service (DaaS) and Software as a Service
(SaaS) businesses operate in a value chain that begins with data
acquisition from public, private, and proprietary sources, including
XCast sensors, weather stations, satellite feeds, and lightning detection
networks. This diverse data is processed to generate actionable insights,
such as lightning activity, renewable energy potential, road weather
conditions, and air quality. Vaisala Xweather primarily uses Amazon Web
Services (AWS) to host its data and services, operating carbon neutral
under AWS’s sustainability framework. In the downstream value chain,
data is distributed mainly via application programming interfaces (API)
that provide external clients and internal Xweather SaaS offerings with
real-time data and forecasts. These APIs integrate seamlessly into
customer systems for efficient data consumption. While DaaS serves a
broad range of industries, SaaS focuses on select sectors and delivers
precise, actionable insights through web and mobile interfaces. Key
customers include renewable energy companies, utility providers,
insurance companies, government agencies, transportation and logistics
firms, and emergency management organizations.
The role of the administrative, management, and supervisory
bodies (GOV-1)
Vaisala’s administrative, management, and supervisory bodies include the
Board of Directors and the President and CEO. The Annual General Meeting,
Board of Directors, and President and CEO, assisted by the Leadership
Team, are responsible for the governance of Vaisala Corporation. Vaisala
has nine non-executive Board members and ten executive Leadership
Team members, including the President and CEO. In 2024, the Leadership
Team comprised nine members.
78% of Vaisala’s Board members are independent.
Vaisala has no representation of employees or other workers on the Board
of Directors or the Leadership Team. However, Vaisala engages with its
workforce in multiple ways, as described in the section Processes for
engaging with own workers and workers’ representatives about impacts
(S1-2).
Vaisala’s corporate governance complies with Finnish law and the
company’s Articles of Association. The Board of Directors operates
according to an approved written charter published on the company’s
website that outlines among other things the management controls and
procedures of impacts, risks, and opportunities related to sustainability
matters.
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Board members do not receive a specific mandate from the Annual General
Meeting that elects them. The Board approves the company’s strategy,
annual plan, and targets, as well as the most important policies such as
the Code of Conduct, Anti-Corruption Policy, Insider Policy, Approval Policy,
and Whistleblowing Policy. The Board’s Audit Committee and People and
Sustainability Committee regularly review and monitor sustainability
matters as part of their work responsibilities.
The primary goal in electing Board members is to gather a team with
combined capabilities to support the development of the company's
current and future business, impact, and sustainability. The Board of
Directors should be considered a unified team capable of managing
its tasks and duties in the most effective and optimal way. In addition,
the Board of Directors should include members of different genders,
educational and professional backgrounds, and nationalities.
The Board's Nomination Committee is responsible for ensuring that Board
members maintain a high level of expertise, knowledge, competence, and
diversity among its members. The Board and its People and Sustainability
Committee oversee succession planning and competence development of
Vaisala’s management and employees.
The Board of Directors, President and CEO, and Leadership Team strive
to gain and maintain adequate sustainability-related expertise through
access to experts and up-to-date information. The Board of Directors is
responsible for the administration, oversight, and proper organization of
company operations, including monitoring, managing, and overseeing
material impacts, risks, and opportunities related to sustainability matters.
The President and CEO is responsible for arranging the administration,
oversight, and organization of the company’s operations under the
supervision of the Board of Directors. The Leadership Team’s role is to
support the President and CEO in the management and execution of the
company’s strategy and operations.
The Leadership Team meets at least once a month to assist the President
and CEO in developing and implementing the strategy, managing
operational businesses, and preparing matters handled by the Board of
Directors. The Leadership Team prepares Vaisala’s annual operational
and financial plans, sets related targets, monitors implementation, and
oversees major investments and acquisitions. In addition, it governs
and manages identified impacts, risks, and opportunities related to
sustainability matters. The President and CEO is responsible for the
decisions made by the Leadership Team. At the same time, each Leadership
Team member is responsible for implementing these decisions within their
respective areas of responsibility.
Vaisala’s target setting is based on the company’s strategy, as approved by
the Board of Directors. Yearly execution planning occurs within business
areas and functions, including setting new targets. The plans are then
approved by the administrative, management, and supervisory bodies,
along with Vaisala’s senior executive management. Performance against
key targets is reported monthly to the administrative, management, and
supervisory bodies.
In 2024, the average ratio of female to male board members, calculated
by dividing the number of female board members by the number of male
board members, was 42%.
Board of Directors age distribution as of December 31, 2024
Age group Percentage of Board members
Under 30 years old 0%
30–50 years old 33.3%
Over 50 years old 66.6%
Information provided to and sustainability matters addressed
by the administrative, management, and supervisory bodies
(GOV-2)
The President and CEO reports to the Board of Directors monthly and as
needed. All business areas and functions report regularly and as necessary
to the President and CEO or Leadership Team members. Reporting to the
administrative, management, and supervisory bodies includes matters
related to the implementation of sustainability due diligence. The President
and CEO and the Leadership Team review and resolve material impacts,
risks, and opportunities related to sustainability matters. The Audit
Committee reviews the double materiality assessment process prepared
by management and approves its result before the Board’s resolution. In
addition, internal audits and compliance reporting may provide information
to the Audit Committee on sustainability matters. Matters related to
climate, operational health and safety, employee development, diversity,
equity and inclusion, anti-corruption, and supply chain management
are regularly reported to the People and Sustainability Committee. All
Board members have access to the reports and materials provided to the
committees.
When overseeing Vaisala’s strategy, major transaction decisions, and risk
management process, the Board of Directors and its committees review
and monitor developments in these areas, including potential trade-offs
associated with impacts, risks, and opportunities. The Board of Directors
also regularly reviews and approves the company’s strategy when
adjustments to priorities are required.
During the reporting period, Vaisala’s administrative, management and
supervisory bodies addressed all identified material impacts, risks, and
opportunities as part of the double materiality assessment. In addition, the
administrative, management, and supervisory bodies addressed impacts,
risks, and opportunities throughout the year as needed.
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Integration of sustainability-related performance in incentive
schemes (GOV-3)
Vaisala is committed to offering fair and competitive remuneration while
maintaining transparency in its pay policies. The company continuously
reviews and enhances its compensation practices to align with market
trends. Vaisala has integrated social and environmental sustainability
targets into its incentive plans, reflecting its dedication to long-term
sustainability targets. These initiatives aim to foster financial growth,
support employee well-being, and cultivate shareholder value.
Sustainability targets are included for the President and CEO in the Short-
Term Incentive (STI) and Long-Term Incentive (LTI) schemes. For both STI
2024 and LTI 2024-2026, the sustainability target carries a weight of 10%.
The LTI target includes a climate-related sustainability goal to reduce scope
3 emissions in relation to gross profit by 2026, compared to the 2021 level.
For STI 2024, the sustainability target is the ratio of entry-level positions in
new hires relative to the total number of new hires.
The terms of the incentive schemes are approved and updated by the
Board of Directors.
Risk management and internal controls over sustainability
reporting (GOV-5)
Risk assessments for sustainability reporting aim to systematically identify
and evaluate the most significant threats in Vaisala’s reporting segments,
functions, and processes. Based on this process, Vaisala defines control
targets to fulfill fundamental sustainability reporting requirements. The
main risks identified are related to the accuracy of the data used in GHG
emissions calculations. To ensure accurate data, these risks are mitigated
through a data control, with several other controls in development.
At Vaisala, internal controls are set up to ensure compliance with applicable
laws, regulations, the Code of Conduct, and other recommendations,
as well as the reliability of financial and operational reporting. Internal
controls also safeguard company assets and aim to promote effectiveness
and efficiency to meet strategic, operational, and financial targets.
All annual sustainability reporting is within the scope of internal control
processes. The internal controls already in place have been documented
in a control catalog, describing each control, which part of the reporting
process they apply to, and their owner. The controls have been integrated
into the respective internal functions and processes, and the process
owners are responsible for ensuring that the necessary controls are
implemented and followed.
The work on implementing and documenting additional controls for
sustainability reporting is ongoing. Internal controls for sustainability
reporting are implemented to ensure accurate, complete, and reliable
sustainability reporting, including timely data from the value chains.
For financial reporting, the Chief Financial Officer regularly reports the
results of internal control activities and their effectiveness to the Audit
Committee. The Board of Directors, Audit Committee, President and
CEO, and internal audit monitor the effectiveness of internal controls
for financial reporting. Sustainability reporting will be adopted to these
processes later.
Interests and views of stakeholders (SBM-2)
Our stakeholders shape the future of our business, and we work with
them in an open and continuous interaction. We identify and evaluate
our stakeholders by defining how they impact Vaisala and analyzing
how our operations impact them. We maintain constant dialogue with
our key stakeholders and actively look for potential partnerships and
collaborations with customers, suppliers, academia, research companies,
organizations, and other parties.
Our key stakeholders are customers, employees, owners and investors,
universities and research collaborators, meteorological institutes and
agencies, manufacturing partners and suppliers, supply chain workers,
governments and regulators, local communities, non-governmental
organizations, media outlets, and the public. We engage with all key
stakeholders in many different ways. We continuously develop and manage
our customer relationships through online channels, meetings, events, and
exhibitions. We also conduct regular online surveys for customer training,
field services operations, and technical support and services.
With our employees, we strive for active two-way communication. Our
main engagement efforts include frequent collaboration with employee
representatives, initiatives to improve employee satisfaction, well-being
and inclusivity, as well as diverse remuneration models.
In addition to the Annual General Meeting, we engage with our owners
and investors by holding quarterly result presentations and Q&A sessions
for investors, analysts, and journalists. We also publish stock exchange
releases and organize roadshows, conference calls, and investor and
analyst meetings.
Engagement with other stakeholders includes partnerships, collaboration
with academic and scientific institutions, scholarships, and donations. We
work closely with our global supply chain and share expertise with external
organizations and decision-makers. In addition, we raise awareness of
environmental issues among experts and the public while continuously
improving our relations with media outlets through press releases and
social media activity.
As part of our sustainability management, stakeholder engagement
helps us identify, assess, manage, and develop action plans for actual
and potential impacts. We carefully assess stakeholder suggestions; for
example, they have influenced our decision to set science-based targets
for greenhouse gas emissions. We also identify and implement different
actions based on the improvement areas highlighted in our employee
interviews and surveys.
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Our purpose, Taking every measure for the planet, communicates how
our measurement technologies provide customers with relevant data
to improve their operations and create a positive climate impact. Deep
customer understanding and application know-how are a part of Vaisala's
four success drivers and are central to our strategy. Our measurement
solutions are based on thoroughly understanding our customers’ needs.
We continuously collaborate with our customers and partners to meet
their measurement requirements and enable climate action.
Vaisala’s administrative, management, and supervisory bodies are
informed of the views and interests of stakeholders affected by Vaisala's
sustainability-related impacts. Examples of information provided include
health and safety reports, employee survey results, and whistleblowing
reports.
Material sustainability matters
This section covers Vaisala’s material sustainability matters, including the
double materiality assessment process. Vaisala’s material sustainability
matters are presented in the accompanying table. Detailed descriptions
of the impacts, risks, and opportunities associated with each material
sustainability matter are presented in the Vaisala’s material impacts, risks,
and opportunities section. Topics closest to, but below, Vaisala’s materiality
thresholds were resource use and circular economy, health and safety of
end-users, training and skills development, and corporate culture.
Vaisala’s material sustainability matters
ESRS Standard Sustainability matter
ENVIRONMENTAL INFORMATION
E1 Climate change
• Climate change adaptation
• Climate change mitigation
• Energy
SOCIAL INFORMATION
S1 Own workforce
• Health and safety
• Gender equality and equal pay for work
of equal value
• Diversity
• Measures against violence and
harassment in the workplace
• Employment and inclusion of persons
with disabilities
S2 Workers in the value chain
• Health and safety
• Child labor
• Forced labor
GOVERNANCE INFORMATION
G1 Business conduct
• Protection of whistleblowers
• Management of relationships with
suppliers
• Prevention and detection of corruption
and bribery including training
• Incidents of corruption and bribery
ENTITY-SPECIFIC TOPICS
• Conflict minerals
• Safety, health, and well-being in society
The identification and assessment of material impacts, risks,
and opportunities (IRO-1)
Overview of the double materiality assessment process
Vaisala conducted a double materiality assessment in 2023-2024.
Workshops were held on different sustainability matters to evaluate the
company's impacts on people and the environment, as well as risks and
opportunities. Key Vaisala employees, including the Leadership Team
and Audit Committee, as well as external experts, participated in the
workshops. In each workshop, the participants identified and discussed
the actual and potential impacts, risks, and opportunities related to the
sustainability matters addressed. Each impact, risk, and opportunity
identified was scored according to the ESRS requirements. The results of
the double materiality assessment were presented to and approved by
both the Leadership Team and the Audit Committee.
The double materiality assessment also included an interview with the
Chair of the Board, two interviews with institutional investors, and guiding
the analysis and validating the results through external sources such as
scientific articles on the impacts of the electronics supply chain on people
and the environment. The interviews were conducted to get insight from
the users of sustainability reports. Guiding the analysis and validating
the results with input from external sources was done to enhance
understanding on the affected stakeholders, especially in the value chains.
The views of our employees on multiple sustainability matters are gathered
annually with employee surveys. In addition, an external expert carried out
a separate double materiality assessment using a mathematical impact
model. The results of this assessment were compared to those of the
double materiality assessment conducted by Vaisala and were used to
validate the identified material impacts, risks, and opportunities. In 2024,
Vaisala carried out a human rights risk assessment, which was also used
to further improve the descriptions of human rights-related impacts
identified in the double materiality assessment.
Vaisala has not yet conducted a climate scenario analysis; therefore,
the double materiality assessment did not consider different climate
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scenarios. Vaisala has screened its activities and plans according to the
Greenhouse Gas Protocol to identify actual and potential future GHG
emission sources. Vaisala has not identified assets and business activities
that are incompatible with a transition to a climate-neutral economy.
In the double materiality assessment, Vaisala used time horizons defined
by ESRS 1 section 6.4 Definition of short-, medium- and long-term for
reporting purposes. The definitions of time horizons are not linked to the
expected lifetime of Vaisala’s assets, strategic planning horizons, or capital
allocation plans.
When conducting the double materiality assessment, specific activities,
business relationships, geographies or other factors that could increase
the risk of adverse impacts were considered. This was a key part of the
process to identify material impacts, risks, and opportunities. For each
impact, risk, and opportunity, it was assessed whether Vaisala is involved
through its own operations or its business relationships.
In the double materiality assessment, the severity of negative human
rights or corruption-related impacts was prioritized over their likelihood
when determining material impacts and sustainability matters for Vaisala.
The same threshold to determine which impacts and sustainability matters
are material for Vaisala was used for human rights and corruption-related
impacts, as well as all other impacts.
When assessing risks and opportunities, consideration was given to
any that could arise from impacts and dependencies. The impacts were
assessed first so that any potential risks or opportunities arising from the
impacts could be identified and evaluated.
Climate related physical risks in own operations and along the upstream
and downstream value chains were assessed as part of the double
materiality assessment. This included the identification of potential
climate-related hazards and screening whether and the extent to which
Vaisala's assets and business activities may be exposed to or are sensitive
to these hazards. In the double materiality assessment, Vaisala identified a
climate-related hazard (extreme weather phenomena) in the long-term. In
the double materiality assessment, Vaisala also identified a climate-related
transition event related to changing customer behavior in the short,
medium, and long term and screened whether and the extent to which
the company’s assets and business activities may be exposed to or are
sensitive to this event.
As part of the double materiality assessment, Vaisala screened its assets,
site locations and business activities to identify actual and potential
impacts, risks, and opportunities in its own operations and its upstream
and downstream value chains related to pollution, water and marine
resources, as well as resource use and circular economy. No material
impacts, risks, or opportunities related to these were identified.
Vaisala has not identified any dependencies on biodiversity and
ecosystems and their services at its site locations or within its upstream
and downstream value chains, nor any transition or physical risks
and opportunities related to biodiversity and ecosystems. Systemic
biodiversity-related risks were considered as part of the assessment.
Vaisala does not have sites located in or near biodiversity-sensitive areas
and has not concluded it is necessary to implement biodiversity mitigation
measures.
Vaisala has not identified any communities that would be materially
affected by the company's operations, and therefore, affected
communities were not consulted as part of the double materiality
assessment.
Methodologies and assumptions applied in the double materiality
assessment
The scoring methodology for impacts, risks, and opportunities was
developed in accordance with ESRS requirements. Impacts were assessed
and scored according to scale, scope, irremediable character, and
likelihood of occurrence. Risks and opportunities were assessed and
scored based on their likelihood of occurrence and the potential magnitude
of the financial effect.
As part of the double materiality assessment, Vaisala determined a
quantitative threshold to determine the materiality of impacts, and
a quantitative threshold to determine the materiality of risks and
opportunities. The thresholds for impact materiality and financial
materiality were defined by a group of experts, including Vaisala Leadership
Team. Both thresholds were approved by the Leadership Team and Audit
Committee.
Risk management and internal controls related to the double
materiality assessment and its integration into other processes
Vaisala uses the same prioritization framework for all risks, including
sustainability-related risks. Different risk management tools are used,
depending on the type of risk. The double materiality assessment was
carried out for the first time in 2023–2024 and has not yet been integrated
into Vaisala's overall risk management process or used to evaluate the
company's overall risk profile and risk management process. The double
materiality assessment will be revised annually.
Key internal controls related to the double materiality assessment are
being developed and we aim to implement them by the next double
materiality assessment. For additional information on internal controls
over sustainability reporting, refer to the Risk management and internal
controls over sustainability reporting (GOV-5) section.
ESRS standards were adopted for the first time in the financial year 2024.
There have not yet been any changes to the double materiality assessment
process, as the assessment was conducted for the first time. However,
the process is continuously being refined based on insights gained from
the first assessment. Although it has not yet been integrated into Vaisala’s
overall management process, this integration may occur in the future.
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Material impacts, risks, and opportunities and their interaction
with strategy and business model (SBM-3)
This section contains information on the material impacts, risks, and
opportunities identified in Vaisala’s double materiality assessment and
how they interact with Vaisala’s strategy and business model.
Vaisala’s material impacts, risks, and opportunities
Everyone in Vaisala's own workforce and all value chain workers who are
likely to be materially impacted by the company are included in the scope
of disclosures under ESRS 2 General disclosures. In Vaisala’s own workforce,
both employees and non-employees, including self-employed people
and people provided by third-party undertakings primarily engaged in
employment activities can be subject to all material positive or negative
impacts.
Vaisala can materially impact multiple different types of value chain
workers. Examples include non-employees working on Vaisala’s sites,
upstream value chain workers involved in extracting metals or minerals,
and downstream value chain workers working for distributors.
The material positive impact on Vaisala’s own workforce is connected
to, and partly originates from, Vaisala’s strategy and can also inform or
contribute to adapting it. This impact is neither connected to nor originates
from Vaisala’s business model and does not inform or contribute to
adapting it. The potential material negative health and safety impact
on Vaisala’s own workforce neither originates from nor is connected to
Vaisala's strategy or business model and does not contribute to adapting
them.
The material negative impacts on value chain workers, the material
negative impacts related to climate change mitigation and energy, and
the material negative impact related to conflict minerals neither originate
from nor are connected to Vaisala's strategy or business model but are
connected to the electronics value chains in general. These impacts do not
materially inform or contribute to adapting Vaisala’s strategy and business
model.
The material positive impacts related to climate change adaptation, climate
change mitigation, and safety, health, and well-being in society originate
from Vaisala’s strategy and are strongly connected to it. These impacts do
not originate from Vaisala’s business model but are connected to it.
The potential material negative impacts related to corruption and
bribery, management of relationships with suppliers, and protection
of whistleblowers neither originate from nor are connected to Vaisala’s
strategy or business model.
NEGATIVE IMPACTS
Vaisala’s actual or potential material negative impacts are related to climate
change mitigation, energy, health and safety, child labor, forced labor,
protection of whistleblowers, prevention and detection of corruption and
bribery, management of relationships with suppliers, and conflict minerals.
Vaisala has a negative impact on climate change mitigation through its
scope 3 emissions, which are created in both upstream and downstream
value chains. Vaisala also has a negative impact on the environment
through energy consumption in both the upstream and downstream value
chains. These impacts are related to all value chain actors in the upstream
and downstream value chains.
Vaisala could potentially have a negative impact on its own workforce
through work-related accidents causing injury or fatality. Through its
human rights risk assessment, Vaisala has gained an understanding of how
people in its own workforce who undertake certain activities or who have
particular characteristics and work contexts may be at greater risk of harm.
The assessment identified that workers in higher-risk positions such as
manufacturing might be at a greater risk of harm.
In multiple parts of the electronics upstream value chain, inadequate
health and safety risk management could lead to accidents or health
impacts. Child labor or forced labor could potentially be used in the
electronics upstream value chain. While this is very unlikely in tier 1
suppliers, it remains a possibility further down the value chain, such as
in the mining industry. Conflict minerals extracted in the electronics
upstream value chain used in Vaisala's products could potentially
contribute to funding conflicts in Africa.
Through its human rights risk assessment, Vaisala has gained an
understanding of how value chain workers who undertake certain activities
or who have particular characteristics and work contexts may be at
greater risk of harm. Vaisala has not identified any specific geographies or
commodities for which there is a particularly significant risk of child labor
or forced labor among workers in the electronics value chain.
By failing to protect whistleblowers, Vaisala could have a negative impact
on them. It would also reduce trust in the whistleblowing channel,
hindering its usefulness in detecting serious risks, such as those related
to human rights or corruption. Vaisala could also have a negative impact
on society if Vaisala's employees use bribery as a means of advancing
business. Similarly, Vaisala could have a negative impact on society if
Vaisala's distributors use bribery as a means of advancing business in the
downstream value chains.
Vaisala would increase its risk of becoming directly linked to various
negative environmental or social impacts if social and environmental
criteria were not considered when selecting suppliers. This can include
severe human rights abuses through Vaisala’s own operations or the
electronics upstream value chain.
Vaisala assessed that all material negative impacts are applicable in the
short, medium, and long term.
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POSITIVE IMPACTS
Vaisala’s material positive impacts are related to climate change
adaptation, climate change mitigation, diversity, equity, and inclusion*, and
safety, health, and well-being in society.
* Diversity, equity, and inclusion include the following ESRS topics: gender equality and equal pay
for work of equal value, employment and inclusion of persons with disabilities, measures against
violence and harassment in the workplace, and diversity.
Vaisala's products and services positively impact the downstream value
chains by supporting climate change adaptation, enabling customers
and societies to better prepare for changing weather conditions. They
also contribute to climate change mitigation for example by enabling
energy savings in customers' processes, increasing renewable energy
production, and improving transportation sustainability. Vaisala's products
and services also positively impact safety, health, and well-being in society
by monitoring conditions in life sciences, providing data on indoor and
outdoor air quality, and improving public safety.
By fostering diversity, equity, and inclusion in the workplace, such as
providing equal possibilities for career development, Vaisala positively
impacts employee well-being.
Vaisala assessed that all material positive impacts are applicable in the
short, medium, and long term.
RISKS AND OPPORTUNITIES
Vaisala has identified a material risk related to climate change adaptation.
Extreme weather phenomena could stop or disrupt a supplier's production,
resulting in a financial effect to Vaisala through a cost increase or
production continuity risk. This risk is material in the long term and is
considered a climate-related physical risk.
Vaisala’s material opportunities are related to climate change adaptation,
climate change mitigation, and safety, health, and well-being in society.
The need for climate change adaptation increases demand for Vaisala's
weather-related products and services. This opportunity is material in the
medium and long term. The need for climate change mitigation increases
demand for Vaisala's products and services in use cases related to energy
transition and decarbonization. This opportunity is material in the short,
medium, and long term. Growing regulations and needs related to safety,
health, and well-being in society increase the demand for Vaisala's
products and services in areas such as life sciences, HVAC, ambient air
quality, and transportation. This opportunity is material in the short,
medium, and long term.
Effects of the material impacts, risks, and opportunities on Vaisala’s
strategy, business model, value chains and decision making
Vaisala’s material opportunities and positive impacts related to climate
change adaptation, climate change mitigation, and safety, health, and
well-being in society are strongly linked to and have affected our current
strategy and are expected to continue having an effect moving forward.
For example, we are continuously monitoring technologies that help
understand, mitigate, and adapt to climate change, and we are developing
measurement solutions that can enable the deployment of impactful
climate technologies.
In addition to our strategy, the material opportunities affect, and are
anticipated to continue affecting, our business model. Vaisala’s business
model is based on a wide and leading product portfolio of world-leading
measurement instruments and intelligence for decision-making, safety,
and efficiency. This model enables us to pursue our material opportunities
effectively.
The material opportunities and risks also affect, and are anticipated to
continue affecting, our value chains. Considering Vaisala’s comprehensive
product portfolio and customer base, pursuing our material opportunities
requires the effective coordination of hundreds of suppliers and selected
strategic partners. To deliver on our customer promise and meet
stakeholder expectations, we must have a reliable and responsible supply
chain.
Vaisala’s material opportunities, risks, and both positive and negative
impacts can also influence our decision-making now and in the future.
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Current financial effects of the material risks and opportunities
The current financial effects of Vaisala’s material opportunities on its financial position, financial performance,
and cash flows are related to climate change mitigation and safety, health, and well-being in society. Vaisala
has not identified any material risks that would have current financial effects. Current financial effects refer to
effects for the current reporting period that are recognized in the primary financial statements.
Description
Related sustainability
matter Risk / Opportunity Financial effect
Increasing regulations and needs related
to safety, health, and well-being increase
the demand for Vaisala's products and
services related to areas such as life
sciences, HVAC, ambient air quality, and
transportation.
Safety, health, and well-
being in society
Opportunity High positive financial
effect, at EUR 10–30
million (EBIT) for the
current reporting
period
The need for climate change mitigation
increases demand for Vaisala's products
and services in use cases related to energy
transition and decarbonization.
Climate change
mitigation
Opportunity High positive financial
effect, at EUR 10–30
million (EBIT) for the
current reporting
period
Anticipated financial effects of the material risks and opportunities
Anticipated financial effects refer to effects that do not meet the recognition criteria for inclusion in the financial
statement line items for the reporting period and are not captured by the current financial effects disclosed above.
The anticipated financial effects of Vaisala’s material opportunities on its financial position, financial performance,
and cash flows are related to climate change mitigation, climate change adaptation, and safety, health, and well-
being in society. The anticipated financial effects of a material risk identified by Vaisala are related to climate change
adaptation.
Description
Related sustainability
matter Risk / Opportunity Financial effect
The need for climate change adaptation
increases demand for Vaisala's weather-related
products and services. This opportunity is
assessed as material in the medium and long
term.
Climate change
adaptation
Opportunity Medium positive
financial effect
The need for climate change mitigation
increases demand for Vaisala's products and
services in use cases related to energy transition
and decarbonization. This opportunity is
assessed as material in the short, medium, and
long term.
Climate change
mitigation
Opportunity High positive financial
effect
Increasing regulations and needs related to
safety, health, and well-being increase the
demand for Vaisala's products and services
related to areas such as life sciences, HVAC,
ambient air quality, and transportation. This
opportunity is assessed as material in the short,
medium, and long term.
Safety, health, and well-
being in society
Opportunity High positive financial
effect
Extreme weather phenomena could stop or
disrupt a supplier’s production, resulting in
a financial effect to Vaisala through a cost
increase or production continuity risk. This risk
is assessed as material in the long term as the
magnitude and likelihood of climate-related
extreme weather phenomena increases.
Climate change
adaptation
Risk Medium negative
financial effect
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Resilience of Vaisala’s strategy and business model regarding the
material impacts, risks, and opportunities
Vaisala’s long-term strategy is to enable climate action with measurement
instruments and intelligence and to maximize positive impact. To execute
this long-term strategy, Vaisala has an annual strategy and execution
planning process with a three-year planning horizon. As part of this
process, key strategic risks and opportunities are analyzed at multiple
levels in the organization. Vaisala also conducts an analysis of relevant
megatrends and scenarios that can impact strategy and its resilience.
In general, Vaisala’s business and strategy can be considered relatively
resilient, given that the company serves multiple industries and regions
with an extensive range of products, technologies, and business models.
Significant investments in R&D and the continuous development of
innovation processes and practices also strengthen the resilience of
Vaisala’s strategy.
Vaisala has not yet conducted a comprehensive analysis of its strategy
and business model resilience relating to climate change. However, in the
double materiality assessment described in the Overview of the double
materiality assessment process section, both climate-related physical and
transition risks were considered to assess potential financial effects on
Vaisala’s business.
Material impacts, risks, and opportunities covered by ESRS disclosure
requirements and entity-specific disclosures
The material negative impact related to conflict minerals is covered by
entity-specific disclosures in the Social information part and by ESRS
disclosure requirements in the General information, Environmental
information, and Social information parts of this sustainability statement.
The material positive impact and opportunity related to safety, health,
and well-being in society are covered by ESRS disclosure requirements in
the General information, Environmental information, and Social information
parts of this sustainability statement , with no further entity-specific
disclosures. All other impacts, risks, and opportunities are covered by ESRS
disclosure requirements.
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Disclosure requirements in ESRS covered
by the sustainability statement (IRO-2)
Vaisala has followed the criteria in ESRS 1 section 3.2 Material matters
and materiality of information to determine the material information to
disclose regarding the impacts, risks, and opportunities identified in the
double materiality assessment. The applicable information prescribed
within a Disclosure Requirement, including its datapoints, or an entity-
specific disclosure, is disclosed if Vaisala assessed that the information is
either significant in relation to the matter it purports to depict or explain, or
relevant to meet the decision-making needs of users of the sustainability
statement. The accompanying table includes all disclosure requirements
complied with in preparing this sustainability statement, along with the
sections where each disclosure is located.
General information
ESRS 2 GENERAL DISCLOSURES
Disclosure requirement Section in the sustainability statement
BP-1 – General basis for preparation of sustainability
statements
General basis for preparation of the sustainability
statement (BP-1)
BP-2 – Disclosures in relation to specific circumstances Disclosures in relation to specific circumstances (BP-2)
GOV-1 – The role of the administrative, management and
supervisory bodies
The role of the administrative, management and
supervisory bodies (GOV-1)
GOV-2 – Information provided to and sustainability
matters addressed by the undertaking’s administrative,
management and supervisory bodies
Information provided to and sustainability matters
addressed by the administrative, management and
supervisory bodies (GOV-2)
GOV-3 – Integration of sustainability-related performance
in incentive schemes
Integration of sustainability-related performance in
incentive schemes (GOV-3)
GOV-4 – Statement on due diligence Statement on due diligence (GOV-4)
GOV-5 – Risk management and internal controls over
sustainability reporting
Risk management and internal controls over sustainability
reporting (GOV-5)
SBM-1 – Strategy, business model and value chain Strategy, business model and value chain (SBM-1)
SBM-2 – Interests and views of stakeholders Interests and views of stakeholders (SBM-2)
SBM-3 – Material impacts, risks and opportunities and
their interaction with strategy and business model
Material impacts, risks, and opportunities and their
interaction with strategy and business model (SBM-3)
IRO-1 – Description of the processes to identify and
assess material impacts, risks and opportunities
The identification and assessment of material impacts,
risks, and opportunities (IRO-1)
IRO-2 – Disclosure requirements in ESRS covered by the
undertaking’s sustainability statement
Disclosure requirements in ESRS covered by the
sustainability statement (IRO-2)
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Environmental information
ESRS E1 CLIMATE CHANGE
Disclosure requirement Section in the sustainability statement
ESRS 2 GOV-3 – Integration of sustainability-related
performance in incentive schemes
Integration of sustainability-related performance in
incentive schemes (GOV-3)
E1-1 – Transition plan for climate change mitigation Transition plan for climate change mitigation (E1-1)
ESRS 2 SBM-3 – Material impacts, risks and opportunities
and their interaction with strategy and business model
Material impacts, risks, and opportunities and their
interaction with strategy and business model (SBM-3)
ESRS 2 IRO-1 – Description of the processes to identify
and assess material climate-related impacts, risks and
opportunities
The identification and assessment of material impacts,
risks, and opportunities (IRO-1)
E1-2 – Policies related to climate change mitigation and
adaptation
Policies related to climate change mitigation and
adaptation (E1-2)
E1-3 – Actions and resources in relation to climate change
policies
Actions and resources in relation to climate change
policies (E1-3)
E1-4 – Targets related to climate change mitigation and
adaptation
Targets related to climate change mitigation and
adaptation (E1-4)
E1-6 – Gross scopes 1, 2, 3 and Total GHG emissions Greenhouse gas emissions (E1-6)
Social information
ESRS S1 OWN WORKFORCE
Disclosure requirement Section in the sustainability statement
ESRS 2 SBM-2 – Interests and views of stakeholders Interests and views of stakeholders (SBM-2)
ESRS 2 SBM-3 – Material impacts, risks and opportunities
and their interaction with strategy and business model
Material impacts, risks, and opportunities and their
interaction with strategy and business model (SBM-3)
S1-1 – Policies related to own workforce Policies related to own workforce (S1-1)
S1-2 – Processes for engaging with own workers and
workers’ representatives about impacts
Processes for engaging with own workers and workers’
representatives about impacts (S1-2)
S1-3 – Processes to remediate negative impacts and
channels for own workers to raise concerns
Processes to remediate negative impacts and channels for
own workforce to raise concerns (S1-3)
S1-4 – Taking action on material impacts on own workforce,
and approaches to mitigating material risks and pursuing
material opportunities related to own workforce, and
effectiveness of those actions
Actions related to material impacts, risks, and
opportunities on own workforce (S1-4)
S1-5 – Targets related to managing material negative
impacts, advancing positive impacts, and managing
material risks and opportunities
Targets related to material impacts, risks, and
opportunities on own workforce (S1-5)
S1-6 – Characteristics of the undertaking’s employees Characteristics of Vaisala’s employees (S1-6)
S1-7 – Characteristics of non-employee workers in the
undertaking’s own workforce
Characteristics of non-employee workers in Vaisala’s own
workforce (S1-7)
S1-9 – Diversity metrics Diversity metrics (S1-9)
S1-14 – Health and safety metrics Health and safety metrics (S1-14)
S1-16 – Remuneration metrics (pay gap and total
remuneration)
Remuneration metrics (S1-16)
S1-17 – Incidents, complaints and severe human rights
impacts
Incidents, complaints and severe human rights impacts
(S1-17)
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ESRS S2 WORKERS IN THE VALUE CHAIN
Disclosure requirement Section in the sustainability statement
ESRS 2 SBM-2 – Interests and views of stakeholders Interests and views of stakeholders (SBM-2)
ESRS 2 SBM-3 – Material impacts, risks and opportunities
and their interaction with strategy and business model
Material impacts, risks, and opportunities and their
interaction with strategy and business model (SBM-3)
S2-1 – Policies related to value chain workers Policies related to value chain workers (S2-1)
S2-2 – Processes for engaging with value chain workers
about impacts
Processes for engaging with value chain workers about
impacts (S2-2)
S2-3 – Processes to remediate negative impacts and
channels for value chain workers to raise concerns
Processes to remediate negative impacts and channels for
value chain workers to raise concerns (S2-3)
S2-4 – Taking action on material impacts on value chain
workers, and approaches to managing material risks and
pursuing material opportunities related to value chain
workers, and effectiveness of those actions
Actions related to material impacts, risks, and opportunities
on value chain workers (S2-4)
S2-5 – Targets related to managing material negative
impacts, advancing positive impacts, and managing
material risks and opportunities
Targets related to material impacts, risks, and opportunities
on value chain workers (S2-5)
Governance information
ESRS G1 BUSINESS CONDUCT
Disclosure requirement Section in the sustainability statement
ESRS 2 GOV-1 – The role of the administrative, management
and supervisory bodies
The role of the administrative, management, and
supervisory bodies (GOV-1)
ESRS 2 IRO-1 – Description of the processes to identify and
assess material impacts, risks and opportunities
The identification and assessment of material impacts,
risks, and opportunities (IRO-1)
G1-1 – Business conduct policies and corporate culture Business conduct policies (G1-1)
G1-2 – Management of relationships with suppliers Management of relationships with suppliers (G1-2)
G1-3 – Prevention and detection of corruption and bribery Prevention and detection of corruption and bribery (G1-3)
G1-4 – Confirmed incidents of corruption or bribery Incidents of corruption and bribery (G1-4)
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Data points that derive from other EU legislation (IRO-2)
Disclosure
requirement
Paragraph
in ESRS Data point
SFDR
reference
Pillar 3
reference
Benchmark
Regulation
reference
EU Climate
Law reference
Part of the sustainability
statement / Not material /
Not applicable
ESRS 2 GOV-1 21 (d) Board's gender diversity X X General information
ESRS 2 GOV-1 21 (e) Percentage of board members who are independent X General information
ESRS 2 GOV-4 30 Statement on due diligence X General information
ESRS 2 SBM-1 40 (d) i Involvement in activities related to fossil fuel activities X X X Not applicable
ESRS 2 SBM-1 40 (d) ii Involvement in activities related to chemical production X X Not applicable
ESRS 2 SBM-1 40 (d) iii Involvement in activities related to controversial weapons X X Not applicable
ESRS 2 SBM-1 40 (d) iv Involvement in activities related to cultivation and production of tobacco X Not applicable
ESRS E1-1 14 Transition plan to reach climate neutrality by 2050 X Environmental information
ESRS E1-1 16 (g) Undertakings excluded from Paris-aligned Benchmarks X X Environmental information
ESRS E1-4 34 GHG emission reduction targets X X X Environmental information
ESRS E1-5 38 Energy consumption from fossil sources disaggregated by sources (only high climate impact sectors) X Not material
ESRS E1-5 37 Energy consumption and mix X Not material
ESRS E1-5 40 to 43 Energy intensity associated with activities in high climate impact sectors X Not material
ESRS E1-6 44 Gross scope 1, 2, 3 and Total GHG emissions X X X Environmental information
ESRS E1-6 53 to 55 Gross GHG emissions intensity X X X Environmental information
ESRS E1-7 56 GHG removals and carbon credits X Not material
ESRS E1-9 66 Exposure of the benchmark portfolio to climate-related physical risks X Not material
ESRS E1-9 66 (a) Disaggregation of monetary amounts by acute and chronic physical risk paragraph X Not material
ESRS E1-9 66 (c) Location of significant assets at material physical risk X Not material
ESRS E1-9 67 (c) Breakdown of the carrying value of its real estate assets by energy-efficiency classes X Not material
ESRS E1-9 69 Degree of exposure of the portfolio to climate-related opportunities X Not material
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Disclosure
requirement
Paragraph
in ESRS Data point
SFDR
reference
Pillar 3
reference
Benchmark
Regulation
reference
EU Climate
Law reference
Part of the sustainability
statement / Not material /
Not applicable
ESRS E2-4 28 Amount of each pollutant listed in Annex II of the E-PRTR Regulation
(European Pollutant Release and Transfer Register) emitted to air, water and soil
X Not material
ESRS E3-1 9 Water and marine resources X Not material
ESRS E3-1 13 Dedicated policy X Not material
ESRS E3-1 14 Sustainable oceans and seas X Not material
ESRS E3-4 28 (c) Total water recycled and reused paragraph X Not material
ESRS E3-4 29 Total water consumption in m
3
per net revenue on own operations X Not material
ESRS 2 SBM-3 - E4 16 (a) i X Not material
ESRS 2 SBM-3 - E4 16 (b) X Not material
ESRS 2 SBM-3 - E4 16 (c) X Not material
ESRS E4-2 24 (b) Sustainable land / agriculture practices or policies X Not material
ESRS E4-2 24 (c) Sustainable oceans / seas practices or policies X Not material
ESRS E4-2 24 (d) Policies to address deforestation X Not material
ESRS E5-5 37 (d) Non-recycled waste X Not material
ESRS E5-5 39 Hazardous waste and radioactive waste X Not material
ESRS 2 SBM-3 - S1 14 (f) Risk of incidents of forced labour X Not material
ESRS 2 SBM-3 - S1 14 (g) Risk of incidents of child labour X Not material
ESRS S1-1 20 Human rights policy commitments X Social information
ESRS S1-1 21 Due diligence policies on issues addressed by the fundamental International Labor Organisation
Conventions 1 to 8
X Social information
ESRS S1-1 22 Processes and measures for preventing trafficking in human beings X Not material
ESRS S1-1 23 Workplace accident prevention policy or management system X Social information
ESRS S1-3 32 (c) Grievance/complaints handling mechanisms X Social information
ESRS S1-14 88 (b) and (c) Number of fatalities and number and rate of work-related accidents X X Social information
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Disclosure
requirement
Paragraph
in ESRS Data point
SFDR
reference
Pillar 3
reference
Benchmark
Regulation
reference
EU Climate
Law reference
Part of the sustainability
statement / Not material /
Not applicable
ESRS S1-16 97 (a) Unadjusted gender pay gap X X Social information
ESRS S1-16 97 (b) Excessive CEO pay ratio X Social information
ESRS S1-17 103 (a) Incidents of discrimination X Social information
ESRS S1-17 104 (a) Non-respect of UNGPs on Business and Human Rights and OECD Guidelines X X Not material
ESRS 2 SBM-3 – S2 11 (b) Significant risk of child labour or forced labour in the value chain X General information
ESRS S2-1 17 Human rights policy commitments X Social information
ESRS S2-1 18 Policies related to value chain workers X Social information
ESRS S2-1 19 Non-respect of UNGPs on Business and Human Rights principles and OECD guidelines X X Social information
ESRS S2-1 19 Due diligence policies on issues addressed by the fundamental International Labor Organisation
Conventions 1 to 8
X Social information
ESRS S2-4 36 Human rights issues and incidents connected to its upstream and downstream value chain X Social information
ESRS S3-1 16 Human rights policy commitments X Not material
ESRS S3-1 17 Non-respect of UNGPs on Business and Human Rights, ILO principles or and OECD guidelines X X Not material
ESRS S3-4 36 Human rights issues and incidents X Not material
ESRS S4-1 16 Policies related to consumers and end-users X Not material
ESRS S4-1 17 Non-respect of UNGPs on Business and Human Rights or OECD guidelines X X Not material
ESRS S4-4 35 Human rights issues and incidents X Not material
ESRS G1-1 10 (b) United Nations Convention against corruption X Not material
ESRS G1-1 10 (d) Protection of whistleblowers X Not material
ESRS G1-4 24 (a) Fines for violation of anti-corruption and anti-bribery laws X X Governance information
ESRS G1-4 24 (b) Standards of anti-corruption and anti-bribery X Governance information
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Statement on due diligence (GOV-4)
Core elements of
due diligence Sections in the sustainability statement
Embedding
due diligence in
governance, strategy
and business model
• The role of the administrative, management, and supervisory bodies (GOV-1)
• Information provided to and sustainability matters addressed by the administrative, management,
and supervisory bodies (GOV-2)
• Material impacts, risks, and opportunities and their interaction with strategy and business model
(SBM-3)
Engaging
with affected
stakeholders in all
key steps of the due
diligence
• Information provided to and sustainability matters addressed by the administrative, management,
and supervisory bodies (GOV-2)
• Interests and views of stakeholders (SBM-2)
• The identification and assessment of material impacts, risks, and opportunities (IRO-1)
• Policies related to climate change mitigation and adaptation (E1-2)
• Policies related to own workforce (S1-1)
• Processes for engaging with own workers and workers’ representatives about impacts (S1-2)
• Processes to remediate negative impacts and channels for own workforce to raise concerns (S1-3)
• Actions related to material impacts, risks, and opportunities on own workforce (S1-4)
• Targets related to material impacts, risks, and opportunities on own workforce (S1-5)
• Policies related to value chain workers (S2-1)
• Processes for engaging with value chain workers about impacts (S2-2)
• Processes to remediate negative impacts and channels for value chain workers to raise concerns
(S2-3)
• Actions related to material impacts, risks, and opportunities on value chain workers (S2-4)
• Targets related to material impacts, risks, and opportunities on value chain workers (S2-5)
• Conflict minerals
• Business conduct policies (G1-1)
• Management of relationships with suppliers (G1-2)
• Prevention and detection of corruption and bribery (G1-3)
Core elements of
due diligence Sections in the sustainability statement
Identifying and
assessing adverse
impacts
• The identification and assessment of material impacts, risks, and opportunities (IRO-1)
Taking actions
to address those
adverse impacts
• Transition plan for climate change mitigation (E1-1)
• Actions and resources in relation to climate change policies (E1-3)
• Actions related to material impacts, risks, and opportunities on own workforce (S1-4)
• Actions related to material impacts, risks, and opportunities on value chain workers (S2-4)
• Prevention and detection of corruption and bribery (G1-3)
Tracking the
effectiveness of
these efforts and
communicating
• Targets related to climate change mitigation and adaptation (E1-4)
• Greenhouse gas emissions (E1-6)
• Targets related to material impacts, risks, and opportunities on own workforce (S1-5)
• Characteristics of Vaisala’s employees (S1-6)
• Diversity metrics (S1-9)
• Incidents, complaints and severe human rights impacts (S1-17)
• Targets related to material impacts, risks, and opportunities on value chain workers (S2-5)
• Targets related to conflict minerals
• Incidents of corruption and bribery (G1-4)
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ESRS E1 Climate change 58
Policies related to climate change mitigation and adaptation (E1-2) 58
Targets related to climate change mitigation and adaptation (E1-4) 58
Greenhouse gas emissions (E1-6) 59
Transition plan for climate change mitigation (E1-1) 62
Actions and resources in relation to climate change policies (E1-3) 62
EU Taxonomy on Sustainable Finance 65
Environmental
information
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ESRS E1 Climate change
Policies related to climate change mitigation and adaptation (E1-2)
Vaisala's Code of Conduct serves as the foundation for how the company
operates, and it relates to all material impacts and opportunities.
Compliance with the Code of Conduct is continuously monitored by
regional and business unit heads, as well as immediate supervisors, while
also being subject to internal audits.
The Code of Conduct relates to Vaisala's positive impacts on climate
change mitigation and adaptation by stating that we design our products
to support our customers’ environmental initiatives. Furthermore, it also
states our purpose, Taking every measure for the planet, emphasizing our
critical role in enabling data-driven climate action. The Code of Conduct
also relates to Vaisala's negative impacts on climate change mitigation,
including our commitment to reduce our greenhouse gas emissions. The
Code of Conduct also addresses energy efficiency and renewable energy
deployment, stating that we use our best efforts to reduce our greenhouse
gas emissions and use natural resources more efficiently. This includes
assessing and measuring our environmental impact, setting improvement
targets, and meeting or surpassing those targets.
The Code of Conduct covers all Vaisala's activities in all geographies. Every
Vaisala employee must follow the Code of Conduct’s principles without
exception.
In addition to our employees, we hold our suppliers, subcontractors, and
business partners across the value chains to the same high standards
and require them to comply with our Partner Code of Conduct. Partners
are responsible for monitoring their compliance, providing Vaisala with
information on potential violations, supplying documentation upon
request, and permitting compliance monitoring by Vaisala or authorized
persons. All Vaisala suppliers, distributors, and representatives, as well as
their suppliers and sub-suppliers in the upstream and downstream value
chains, are included in the scope of the Partner Code of Conduct. The
Partner Code of Conduct may not cover independent third-party vendors
who do not have a direct contractual relationship with Vaisala. In certain
regions, local laws and regulations may overrule Vaisala’s policies. Vaisala
aims to sign the Partner Code of Conduct with all business partners.
The Partner Code of Conduct addresses, among other topics, climate
change mitigation, stating that partners must reduce their emissions.
Furthermore, it states that our partners must continuously work to lower
their environmental impact by improving energy efficiency, adopting
renewable energy sources, and implementing waste reduction strategies.
Vaisala's material risks, including those related to climate change, are
managed according to Vaisala’s risk management policy, which covers
all of Vaisala's activities in all geographies. The risk management policy
describes Vaisala’s general risk management principles, including
objectives, risk categories, appetite levels for different risk types, and the
risk management process.
The President and CEO is the most senior level in Vaisala's organization
accountable for implementing policies.
Vaisala makes all its policies available to potentially affected stakeholders,
and stakeholders who need to help implement them through training and
information sharing.
Targets related to climate change mitigation and adaptation (E1-4)
In line with our commitment to reduce greenhouse gas (GHG) emissions,
we have set science-based GHG emission reduction targets. They are
based on conclusive scientific evidence and are compatible with limiting
global warming to 1.5°C, as the Paris Agreement outlines. The targets
have been validated by the Science Based Targets initiative (SBTi) and
conform with the SBTi Criteria and Recommendations (Criteria version 5.1).
Stakeholders have not been involved in setting the targets.
Vaisala’s near-term science-based targets
Vaisala commits to reduce absolute scope 1 and 2 GHG emissions 52% by
2030 from a 2021 base year*. Vaisala also commits to reduce scope 3 GHG
emissions from purchased goods and services, upstream transportation
and distribution, business travel, employee commuting and use of sold
products 52% per million EUR value added within the same timeframe.
*The target boundary includes land-related emissions and removals from bioenergy feedstocks.
Methodologies and assumptions used to define the targets
Vaisala has considered future developments, such as net sales growth and
changes in business portfolio in the target setting. Net sales growth will
increase Vaisala's GHG emissions, while business portfolio development is
expected to lower the emissions.
Vaisala ensures the consistency of the targets with its GHG inventory
boundaries by using the same boundaries for scope 1 and 2 emissions, as
well as the scope 3 emission categories included in the target.
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The comparability between the base year and the comparative year
emissions is ensured by using the same boundaries and a consistent
methodology for the calculation. Vaisala adheres to the SBTi’s 5%
significance threshold as a guideline for recalculating base year emissions.
This means that any individual or cumulative change of 5% or more in
Vaisala’s total base year emissions will trigger a recalculation. This applies
to both increases and decreases in emissions due to reasons such as
structural changes or methodological updates.
Performance against targets
In 2024, Vaisala’s progress toward its emission reduction targets compared
to the base-year was as follows:
• Scope 1 and 2 emissions increased by 13.7%, which was mainly caused by
fugitive emissions related to refrigerants.
• Scope 3 emissions in relation to gross profit decreased by 12.7%, which
indicates that we are close to our estimated emissions reduction path
towards our goal.
The results are monitored annually.
Greenhouse gas emissions (E1-6)
None of the metrics presented in this section have been validated by an
external body other than the assurance provider.
Data collection and calculation methodologies
To calculate scope 1 emissions, we collect data from Vaisala-owned and
leased cars, and from the consumption of heating fuels and refrigerants.
For scope 2 emissions, we collect data from the energy consumption of
our sites. For scope 3 emissions, we collect data from various sources. For
use of sold products, purchased goods and services, capital goods, and
inbound logistics, we use data from our internal systems. For outgoing
logistics, we receive data from our logistics partners, and for business
travel from our travel agency. For commuting, we utilize data from our
commuting survey, which was renewed in 2024 to estimate the proportions
of different transportation modes and the share of remote work.
The 2024 emission data are primarily based on the most recent 12 months
of data available when the report was prepared, including data for the
first 9 to 11 months of the year as well as the previous year. In some cases,
the data for the missing months has been estimated based on actual
data for earlier months. There is no reason to assume that there could be
significant differences between the estimates and the actual figures.
New acquisitions in September-December 2024 have been included in
the emissions inventory for the entire year, in accordance with the GHG
Protocol Corporate Standard. Emissions have been estimated based
on revenue share of the acquired companies and Vaisala. For target
calculations we have adjusted revenue and gross profit accordingly.
In line with the GHG Protocol, the net revenue used as the denominator in
the calculation of the GHG emissions intensity includes the net revenue
of the acquired companies for the entire year. The net revenue (net sales)
disclosed in Vaisala Corporation Financial Statement Release January–
December 2024 includes the net revenue of the acquired companies since
the acquisition dates. Therefore, the net revenue used as the denominator
in the calculation of the GHG emissions intensity is slightly different than
the net revenue (net sales) disclosed in the financial statements.
In 2024, Vaisala implemented an external software to calculate emissions.
The new software improved the effectiveness of emissions calculation
and made it more systematic. This was due to enhanced data handling,
which enabled Vaisala to avoid previous data groupings, particularly with
the purchased goods and services as well as the use of sold products
categories. To maintain the comparability of data, we used the software to
recalculate also the emissions for the base year 2021.
The accompanying table describes our calculation methodology for each of
the scope 3 emission categories as defined in the GHG Protocol.
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SCOPE 3 EMISSIONS CATEGORIES
Scope 3 category Explanation
1. Purchased goods and services For direct purchases, we used our purchase order data from our internal system and combined it with the part weights from our product data management system, when available. We
calculated the emissions of purchased items based on their weight, material approximations, and matching emission factors. When the weight was not available, we used spend-based
calculations. For indirect purchasing, we used spend-based calculations covering the vendor subtypes assessed as relevant considering emissions and that are not included in other
emission categories.
2. Capital goods We used a spend-based approach based on financial data for fixed assets. Emissions in this category vary significantly from year to year based on purchasing needs.
3. Fuel and energy-related activities For this category, we considered the heating and vehicle fuels reported under scope 1 and the total energy consumption reported under scope 2. We used the emission factors available to
us to calculate the upstream emissions as well as transmission and distribution losses for our fuel and energy use.
4. Upstream transportation and distribution For inbound logistics, we used data from our internal systems concerning the geographic locations of our suppliers and the approximate weight of the incoming goods. The distance
traveled was estimated based on the country of origin and the destination country. For outbound logistics, we used emissions data received from our most important logistics service
providers. When the primary data was not available, we used spend data. We also used transportation method-specific WtW (Well-to-Wheel) emission factors.
5. Waste generated in operations The calculation was based on the waste streams at our manufacturing sites. According to our estimates, these cover more than 90% of the total waste generated at Vaisala sites. We have
extrapolated these emissions to cover our total waste generation globally.
6. Business travel We included air and rail travel, rental car kilometers, and kilometer reimbursements for employees using their own cars for business trips. For air and rail travel as well as rental cars, we
received data from our service providers.
7. Employee commuting In 2024, we conducted a commuting survey among all our global employees. The results provided a good representation of our different locations. We extrapolated the results to cover all
our employees. We have not included emissions from remote work.
8. Upstream leased assets This category does not apply to Vaisala. We have covered the emissions of our leased vehicles and facilities in our scope 1 and 2 emissions.
9. Downstream transportation and
distribution
We used data from our internal system on the transportation methods and the weight of customer-paid shipments. The distance traveled was estimated based on the country of origin and
the destination country. We used transportation method-specific WtW emission factors.
10. Processing of sold products This category does not apply to Vaisala.
11. Use of sold products 
of product x average power consumption x country-specific emission factor for electricity). Due to the long life cycles of our products, which can even reach 20 years, this category is our
largest emission category.
12. End-of-life treatment of sold products We used data from our internal systems on the total amount of products sold to different regions, as well as research data on the regional waste treatment methods for waste from
electrical and electronic equipment and packaging.
13. Downstream leased assets This category does not apply to Vaisala.
14. Franchises This category does not apply to Vaisala.
15. Investments This category does not apply to Vaisala.
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Vaisala’s scope 1, 2, and 3 GHG emissions
Vaisala’s GHG emissions are disclosed in the table below. Vaisala’s GHG
calculation timeframe follows the financial year.
Retrospective Milestones and target years
Base year Comparative N % N / N-1 2025 2030 (2050)
Annual % target
/ Base year
Scope 1 GHG emissions
Gross scope 1 GHG emissions (tCO
eq) 402 N/A 545 N/A N/A N/A N/A N/A
Percentage of scope 1 GHG emissions from regulated emission trading schemes (%) N/A N/A N/A N/A N/A N/A N/A N/A
Scope 2 GHG emissions
Gross location-based scope 2 GHG emissions (tCO
eq) 2146 N/A 1,767 N/A N/A N/A N/A N/A
Gross market-based scope 2 GHG emissions (tCO
eq) 93 N/A 18 N/A N/A N/A N/A N/A
Significant scope 3 GHG emissions
Total Gross indirect (scope 3) GHG emissions (tCO
eq) 95,189 N/A 110,361 N/A N/A N/A N/A N/A
1 Purchased goods and services 28,284 N/A 27,306 N/A N/A N/A N/A N/A
2 Capital goods 4,407 N/A 3,922 N/A N/A N/A N/A N/A
3 Fuel and energy-related Activities (not included in scope 1 or scope 2) 1,030 N/A 936 N/A N/A N/A N/A N/A
4 Upstream transportation and distribution 16,234 N/A 21,906 N/A N/A N/A N/A N/A
5 Waste generated in operations
14 N/A 18 N/A
N/A N/A N/A N/A
6 Business traveling 1,223 N/A 4,386 N/A N/A N/A N/A N/A
7 Employee commuting 872 N/A 2,166 N/A N/A N/A N/A N/A
9 Downstream transportation 211 N/A 356 N/A N/A N/A N/A N/A
11 Use of sold products 42,895 N/A 49,362 N/A N/A N/A N/A N/A
12 End-of-life treatment of sold products 19 N/A 4 N/A N/A N/A N/A N/A
Total GHG emissions
Total GHG emissions (location-based) (tCO
eq) 97,737 N/A 112,673 N/A N/A N/A N/A N/A
Total GHG emissions (market-based) (tCO
eq) 95,684 N/A 110,924 N/A N/A N/A N/A N/A
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GHG emissions intensity based on net revenue
In 2024, Vaisala’s GHG emissions intensity (total GHG emissions in tCO
2
eq
per million euros of net revenue) was 189 using the market-based method,
and 192 using the location-based method.
Emission factors
Greenhouse gas emissions are calculated using the best available emission
factors. The primary databases used as sources of emission factors are
Exiobase, DESNZ (UK Department for Energy Security and Net Zero),
Ecoinvent, Idemat and IEA Emissions Factors.
The service provider for our new calculation software has chosen the
emission factors used. Certain emission factors were received from other
sources, such as our logistics partners, local energy companies, and vehicle
manufacturers. To calculate our scope 2 emissions, we primarily used
the market-based calculation method, which accounts for the specific
emissions of our purchased energy. In addition, we reported our location-
based scope 2 emissions, calculated using average country-specific
emissions from energy production.
Transition plan for climate change mitigation (E1-1)
Vaisala has a transition plan for climate change mitigation approved
by Vaisala’s Board of Directors. The transition plan describes Vaisala’s
GHG emission reduction targets, the decarbonization levers, and key
actions Vaisala is taking to reach its climate targets. Vaisala has already
implemented many of the actions described in the transition plan during
the reporting year, as listed in the section Actions and resources in relation to
climate change policies (E1-3).
The transition plan is closely aligned with Vaisala's overall business
strategy, as the company aims to grow its share of products with a lower
carbon footprint as well as services in its business portfolio. The actions
described in the transition plan are also considered in Vaisala's financial
planning.
Alignment with EU Sustainable finance regulations
Vaisala has not set objectives or made plans to align its economic activities
with the criteria established in Commission Delegated Regulation
2021/2139 (Taxonomy regulation).
To evaluate the alignment of investment portfolios with the objectives of
the Paris Agreement on climate change, the European Commission has
laid down the minimum criteria that indices must meet to be labeled as
Paris-aligned Benchmark indices. These also include criteria to exclude
companies from Paris-aligned Benchmarks. Vaisala does not meet
these exclusion criteria; therefore, it is not excluded from Paris-aligned
Benchmarks.
Actions and resources in relation to climate change policies
(E1-3)
Vaisala’s key emission reduction actions listed in the tables cover the entire
value chains and all geographies. To determine decarbonization levers,
Vaisala only considered the climate scenario compatible with limiting
global warming to 1.5°C.
Vaisala’s ability to implement the actions does not depend on resource
availability and allocation, as implementing the transition plan does not
require additional significant investments or funding.
Due to the high uncertainty related to the magnitude of different
decarbonization levers, Vaisala is unable to report their quantitative
contributions toward achieving the GHG emission reduction targets.
Vaisala's Leadership Team has set the following vision:
• Vaisala will take GHG emissions into account in all its decision-making,
where relevant.
• The carbon footprint for all new products will be calculated and
minimized.
• New products shall have a smaller carbon footprint than the previous
comparable model.
• Vaisala will minimize GHG emissions related to business travel.
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Scope 1 and 2 decarbonization levers and actions
Lever Key actions in the reporting year and in the future
VEHICLE EMISSIONS REDUCTION
Most of Vaisala’s combined scope 1 and 2 emissions originate from using vehicles, primarily for field service operations. As
electrification is the most effective way to reduce vehicle emissions, it will be prioritized when feasible. However, electrification
of the field service vehicles is often not possible due to the long distances they cover and the challenging environments
they operate in, which usually lack charging infrastructure. As the range of electric vehicles and the availability of charging
infrastructure improve, Vaisala will continue to evaluate and test electrification opportunities. In addition, Vaisala will
experiment with emerging technologies once they become commercially available.
• Purchasing or leasing electric vehicles (2025–2030)
• Experimenting with new technologies (2025–2030)
RENEWABLE ENERGY USE
Vaisala already uses over 95% renewable energy. Most of the remaining energy-use-related emissions originate from the
natural gas used for heating some sites during the winter. To address these emissions, Vaisala will explore opportunities
to switch to alternative heating sources at these sites. Additionally, some small sales offices are situated in areas where
purchasing renewable electricity through green contracts or certificates is not currently possible. Vaisala plans to purchase
renewable electricity certificates for these sites as soon as they become available.
• Switching gas heating to alternative sources where feasible (2025–2030)
• Purchasing renewable energy certificates as they become available in new areas (2025–2030)
Scope 3 decarbonization levers and actions
Lever Key actions in the reporting year and in the future
PRODUCT AND SERVICE PORTFOLIO CHANGES
The share of services, as well as less material-intensive and energy-consuming products, is expected to grow in Vaisala’s
business portfolio, thereby reducing scope 3 emissions in relation to value added. The primary drivers of this growth are
the rapid expansion of Vaisala Xweather, which focuses on providing weather-related data, and the growth of the Industrial
Measurements business area, which has products that typically consume less energy than those in the Weather and
Environment business area.
• Growing the share of services and data as well as less material-intensive and energy-consuming products in Vaisala’s
portfolio (2024–2030)
PRODUCT CARBON FOOTPRINT REDUCTION
Vaisala will evaluate and aim to minimize the carbon footprint of all its new products. The scope 3 emissions in relation to value
added will be reduced by designing products with lower material carbon footprints and lower energy consumption.
• Making internal carbon footprint evaluation a part of every new product design (2024)
• Piloting an internal carbon footprint estimation tool in product design (2024)
• Rewarding employees’ ideas to reduce the carbon footprints of our products (2024)
• Implementing ideas to reduce the carbon footprints of our products (2025–2030)
SUPPLY CHAIN DECARBONIZATION
Supply chain emissions will be reduced by identifying and implementing emission reduction opportunities together with our
suppliers. Most of Vaisala’s supply chain emissions originate from electronics, with emission reduction actions anticipated towards
the end of the target period in 2030. In addition, Vaisala will take actions such as purchasing gases and metals with a lower carbon
footprint.
• Purchasing gases with a lower carbon footprint (2024–2030)
• Investigating sources, availability, and prices of metals with a lower carbon footprint (2024)
• Purchasing metals with a lower carbon footprint (2025–2030)
• Identifying and implementing other emission reduction opportunities with suppliers (2024–2030)
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Lever Key actions in the reporting year and in the future
LOGISTICS EMISSIONS REDUCTION
Logistics emissions in relation to value added will be reduced by changing transportation methods, reducing the weight of
deliveries, and collaborating with logistics partners.
• Shifting from air to road transport in European distribution (2024)
• Piloting the use of lighter freight pallets (2024)
• Starting a project to renew package designs (2024)
• Replacing paper manuals with digital documents (2024–2030)
• Identifying and implementing emission reduction opportunities with logistics partners (2025–2030)
BUSINESS TRAVEL AND COMMUTING EMISSIONS REDUCTION
Business travel emissions in relation to value added will be reduced by taking actions such as encouraging employees to avoid
non-essential business travel and choose greener ways of traveling when possible. Commuting emissions in relation to value
added will be reduced by promoting greener commuting methods among employees.
• Reducing business travel emissions, e.g., by encouraging employees to avoid non-essential business travel and
consider greener ways of traveling (2024–2030)
• Encouraging greener commuting, e.g., by offering a bicycle benefit and a city bike station in Vantaa (2024–2030)
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EU Taxonomy on
Sustainable Finance
The EU Taxonomy Regulation outlines the criteria for an economic activity
to be deemed environmentally sustainable. There are six key objectives set
out within the regulation: climate change mitigation and climate change
adaptation covered by the Climate Delegated Act, as well as sustainable
use and protection of water and marine resources, transition to a circular
economy, pollution prevention and control, and protection and restoration
of biodiversity and ecosystems covered by the Environmental Delegated
Act.
The taxonomy regulation requires companies to disclose the proportion
of their activities that are taxonomy-eligible and taxonomy-aligned.
This disclosure is made in terms of three KPIs: Turnover (Net sales in
Vaisala’s financial reporting), Capital expenditure (CapEx), and Operating
expenditure (OpEx).
Turnover
TAXONOMY-ELIGIBLE TURNOVER
We have evaluated the taxonomy-eligibility of our activities based on
the descriptions of economic activities in Annexes 1 and 2 of the Climate
Delegated Act, including the amendments to the annexes, as well as
Annexes 1–4 of the Environmental Delegated Act.
In the taxonomy-eligible turnover, we have included all our product and
project sales, as well as lease income, as they fall under the activity 1.2
Manufacture of electrical and electronic equipment within Annex 2
(transition to a circular economy) of the Environmental Delegated Act.
TAXONOMY-ALIGNED TURNOVER
We have assessed that our taxonomy-eligible activities under the circular
economy objective do not meet the technical screening criteria laid out in
Annex 2 of the Environmental Delegated Act. Therefore, we do not report
any taxonomy-aligned turnover.
Capital expenditure (CapEx)
TAXONOMY-ELIGIBLE CAPEX
In the context of taxonomy reporting, our total CapEx includes additions
to right-of-use assets, in addition to the tangible and intangible assets
detailed in note 16 to the consolidated financial statements.
In the taxonomy-eligible CapEx, we have included investments in tangible
and intangible assets related to Manufacture of electrical and electronic
equipment, which is Vaisala’s own taxonomy-eligible activity under the
circular economy objective. The CapEx related to the Manufacture of
electrical and electronic equipment activity is estimated using a multiplier.
This multiplier is calculated as the proportion of the turnover from the
Manufacture of electrical and electronic equipment activity to the total
turnover of the Vaisala Group. The Group’s total investments on tangible
and intangible assets are multiplied by this ratio to determine the CapEx
related to the Manufacture of electrical and electronic equipment activity.
In addition, we have identified taxonomy-eligible CapEx related to the
purchase of output from taxonomy-eligible activities. These include
additions to right-of-use assets related to leased buildings and leased cars,
as Acquisition and ownership of buildings and Transport by motorbikes,
passenger cars, and light commercial vehicles are taxonomy-eligible
activities under the climate change objectives.
TAXONOMY-ALIGNED CAPEX
We do not have any CapEx related to our own taxonomy-aligned activities.
Furthermore, we are unable to assess the taxonomy-alignment of the
CapEx related to the purchase of output from taxonomy-eligible activities.
Therefore, we do not report any taxonomy-aligned CapEx.
Operating expenditure (OpEx)
TAXONOMY-ELIGIBLE OPEX
In the context of taxonomy reporting, our total OpEx only includes research
and development expenses, excluding the cost of managing research and
development projects.
In the taxonomy-eligible OpEx, we have included research and
development expenses related to our taxonomy-eligible activity
Manufacture of electrical and electronic equipment.
TAXONOMY-ALIGNED OPEX
As Vaisala does not have any research and development expenses related
to taxonomy-aligned activities, we do not report any taxonomy-aligned
OpEx.
Avoidance of double counting
We have identified taxonomy-eligible activities also within Annexes 1
(climate change mitigation) and 2 (climate change adaptation) of the
Climate Delegated Act. However, to avoid double counting, these activities
are not included in the reporting, as these activities are covered by the
broader activity of Manufacture of electrical and electronic equipment.
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Financial year 2024 2024 Substantial Contribution Criteria
DNSH criteria
('Does Not Significantly Harm')
Economic activities (1)
Code (2)
Net sales (3)
Proportion of Net sales,
year 2024 (4)
Climate Change Mitigation (5)
Climate Change Adaptation (6)
Water (7)
Pollution (8)
Circular Economy (9)
Biodiversity (10)
Climate Change Mitigation (11)
Climate Change Adaptation (12)
Water (13)
Pollution (14)
Circular Economy (15)
Biodiversity (16)
Minimum Safeguards (17)
Proportion of Taxonomy aligned
(A.1) or eligible (A.2) net sales,
year 2023 (18)
Category enabling
activity (19)
Category transitional
activity (20)
MEUR %
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities (Taxonomy-aligned)
Net sales of environmentally sustainable activities (Taxonomy-aligned) (A.1) 0 0% 0%
Of which Enabling 0 0% 0%
Of which Transitional 0 0% 0%
A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL
Manufacture of electrical and electronic equipment CE 1.2 476.0 84% N/EL N/EL N/EL N/EL EL N/EL 86.5%
Net sales of Taxonomy-eligible but not environmentally sustainable activities
(not Taxonomy-aligned activities) (A.2)
476.0 84% 0% 0% 0% 0% 84% 0% 86.5%
A. Net sales of Taxonomy-eligible activities (A.1 + A.2) 476.0 84% 0% 0% 0% 0% 84% 0% 86.5%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Net sales of Taxonomy-non-eligible activities 88.6 16%
TOTAL 564.6 100%
Proportion of net sales from products or services associated
with Taxonomy-aligned economic activities – disclosure
covering year 2024
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Corporate Governance Statement
Proportion of CapEx from products or services associated
with Taxonomy-aligned economic activities – disclosure
covering year 2024
Financial year 2024 2024 Substantial Contribution Criteria
DNSH criteria
('Does Not Significantly Harm')
Economic activities (1)
Code (2)
CapEx (3)
Proportion of CapEx,
year 2024 (4)
Climate Change Mitigation (5)
Climate Change Adaptation (6)
Water (7)
Pollution (8)
Circular Economy (9)
Biodiversity (10)
Climate Change Mitigation (11)
Climate Change Adaptation (12)
Water (13)
Pollution (14)
Circular Economy (15)
Biodiversity (16)
Minimum Safeguards (17)
Proportion of Taxonomy aligned
(A.1) or eligible (A.2) CapEx,
year 2023 (18)
Category enabling
activity (19)
Category transitional
activity (20)
MEUR %
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities (Taxonomy-aligned)
CapEx of environmentally sustainable activities (Taxonomy-aligned) (A.1) 0 0% 0%
Of which Enabling 0 0% 0%
Of which Transitional 0 0% 0%
A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL
Manufacture of electrical and electronic equipment CE 1.2 19.6 56% N/EL N/EL N/EL N/EL EL N/EL 0%
Acquisition and ownership of buildings
CCM/
CCA 7.7
10.9 31% EL EL N/EL N/EL N/EL N/EL 22.7%
Transport by motorbikes, passenger cars and light commercial vehicles
CCM/
CCA 6.5
0.6 2% EL EL N/EL N/EL N/EL N/EL 1.8%
CapEx of Taxonomy-eligible but not environmentally sustainable activities
(not Taxonomy-aligned activities) (A.2)
31.0 90% 33% 33% 0% 0% 56% 0% 24.4%
A. CapEx of Taxonomy-eligible activities (A.1 + A.2) 31.0 90% 33% 33% 0% 0% 56% 0% 24.4%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
CapEx of Taxonomy-non-eligible activities 3.8 10%
TOTAL 34.8 100%
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Corporate Governance Statement
Proportion of OpEx from products or services associated
with Taxonomy-aligned economic activities – disclosure
covering year 2024
Financial year 2024 2024 Substantial Contribution Criteria
DNSH criteria
('Does Not Significantly Harm')
Economic activities (1)
Code (2)
OpEx (3)
Proportion of OpEx,
year 2024 (4)
Climate Change Mitigation (5)
Climate Change Adaptation (6)
Water (7)
Pollution (8)
Circular Economy (9)
Biodiversity (10)
Climate Change Mitigation (11)
Climate Change Adaptation (12)
Water (13)
Pollution (14)
Circular Economy (15)
Biodiversity (16)
Minimum Safeguards (17)
Proportion of Taxonomy aligned
(A.1) or eligible (A.2) OpEx,
year 2023 (18)
Category enabling
activity (19)
Category transitional
activity (20)
MEUR %
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities (Taxonomy-aligned)
OpEx of environmentally sustainable activities (Taxonomy-aligned) (A.1) 0 0% 0%
Of which Enabling 0 0% 0%
Of which Transitional 0 0% 0%
A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL
Manufacture of electrical and electronic equipment CE 1.2 47.4 73% N/EL N/EL N/EL N/EL EL N/EL 75.0%
OpEx of Taxonomy-eligible but not environmentally sustainable activities
(not Taxonomy-aligned activities) (A.2)
47.4 73% 0% 0% 0% 0% 73% 0% 75.0%
A. OpEx of Taxonomy-eligible activities (A.1 + A.2) 47.4 73% 0% 0% 0% 0% 73% 0% 75.0%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
OpEx of Taxonomy-non-eligible activities 17.6 27%
TOTAL 65.0 100%
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Nuclear and fossil gas related activities
Row NUCLEAR ENERGY RELATED ACTIVITIES Yes/no
1. The undertaking carries out, funds, or has exposures to research, development,
demonstration, and deployment of innovative electricity generation facilities that
produce energy from nuclear processes with minimal waste from the fuel cycle.
No
2. The undertaking carries out, funds, or has exposures to construction and safe
operation of new nuclear installations to produce electricity or process heat,
including for the purposes of district heating or industrial processes such as
hydrogen production, as well as their safety upgrades, using best available
technologies.
No
3. The undertaking carries out, funds, or has exposures to safe operation of existing
nuclear installations that produce electricity or process heat, including for the
purposes of district heating or industrial processes such as hydrogen production
from nuclear energy, as well as their safety upgrades.
No
FOSSIL GAS RELATED ACTIVITIES
4. The undertaking carries out, funds, or has exposures to construction or operation of
electricity generation facilities that produce electricity using fossil gaseous fuels.
No
5. The undertaking carries out, funds, or has exposures to construction,
refurbishment, and operation of combined heat/cool and power generation facilities
using fossil gaseous fuels.
No
6. The undertaking carries out, funds, or has exposures to construction,
refurbishment, and operation of heat generation facilities that produce heat/cool
using fossil gaseous fuels.
No
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ESRS S1 Own workforce 71
Policies related to own workforce (S1-1) 71
Processes for engaging with own workers and
workers’ representatives about impacts (S1-2) 72
Processes to remediate negative impacts and
channels for own workforce to raise concerns (S1-3) 72
Actions related to material impacts, risks, and
opportunities on own workforce (S1-4) 73
Targets related to material impacts, risks, and
opportunities on own workforce (S1-5) 74
Characteristics of Vaisala’s employees (S1-6) 76
Characteristics of non-employee workers in
Vaisala’s own workforce (S1-7) 77
Diversity metrics (S1-9) 77
Health and safety metrics (S1-14) 77
Remuneration metrics (S1-16) 77
Incidents, complaints and severe human rights
impacts (S1-17) 77
ESRS S2 Workers in the value chain 78
Policies related to value chain workers (S2-1) 78
Processes for engaging with value chain
workers about impacts (S2-2) 78
Processes to remediate negative impacts and
channels for value chain workers to raise concerns
(S2-3) 78
Actions related to material impacts, risks, and
opportunities on value chain workers (S2-4) 79
Targets related to material impacts, risks, and
opportunities on value chain workers (S2-5) 79
Conflict minerals 80
Social
information
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ESRS S1 Own workforce
Vaisala’s motivated and talented employees are a key factor behind our
success. Our people are driven by the opportunity to solve some of the
most pressing challenges of our time. We uphold sustainable and ethical
behavior as a core value for both Vaisala and our employees. Occupational
health and safety are also an important part of all our activities. We invest
in the health and safety training of our employees and ensure that they
have the necessary qualifications to perform their work.
Policies related to own workforce (S1-1)
Vaisala has a Code of Conduct and a Global Quality, Environment, and
Health and Safety (QEHS) Policy to manage material impacts on its
own workforce. Both policies cover Vaisala's entire own workforce. The
President and CEO is the most senior level in Vaisala's organization
accountable for implementing policies. Vaisala makes all its policies
available to potentially affected stakeholders, and stakeholders who need
to help implement them through training and information sharing.
Vaisala’s Code of Conduct serves as the foundation for the company’s
operations and relates to all material impacts and opportunities. For more
information on these impacts and opportunities, see the Vaisala’s material
impacts, risks, and opportunities section. Compliance with the Code of
Conduct is continuously monitored by regional and business unit heads
and immediate supervisors while also being subject to internal audits.
The general objective of the QEHS Policy is to maintain high standards of
quality, environmental stewardship, and workplace health and safety. This
is monitored by identifying and reporting incidents, hazards, and near
misses. The policy relates to Vaisala’s potential material negative health and
safety-related impact on its own workforce. For more information on this
impact, see the Vaisala’s material impacts, risks, and opportunities section.
Human rights policy commitments
Vaisala’s Code of Conduct states that Vaisala respects human rights and
upholds internationally recognized human and labor rights. These rights
are outlined in the International Bill of Human Rights and the eight core
conventions of the International Labor Organization (ILO) Declaration
on Fundamental Principles and Rights at Work, in accordance with the
United Nations Guiding Principles on Business and Human Rights. These
include preventing the trafficking in human beings, forced or compulsory
labor, child labor, respecting the freedom of association and the right to
collective bargaining, as well as safeguarding workers from discrimination
in employment and occupation. Vaisala is committed to valuing the
health and safety of its workers and adheres to the International Labor
Organization's conventions on labor standards for working hours.
In line with its sustainable practices, Vaisala endorses the United Nations
Global Compact initiative. This means that Vaisala upholds the Ten
Principles of the initiative, which cover areas such as human rights, labor
standards, environmental protection, and anti-corruption measures.
As a company, we always comply with the laws and regulations of the
countries where we operate. Where differences exist between regulatory
requirements and Vaisala’s Code of Conduct, we strive to apply whichever
sets the highest standard.
Vaisala’s commitment to ethical behavior extends beyond legal
compliance. Vaisala strives to be a good corporate citizen who actively
invests in sustainable business practices.
All Vaisala employees undergo a mandatory Code of Conduct training
biannually. This training covers equality and respect in the workplace, as
well as occupational health and safety, among other topics. Additionally,
all employees receive shorter mandatory reminder training between the
comprehensive sessions. In addition to general training, we provide our
employees with targeted training. These trainings are often offered in
smaller groups and conducted in person.
Policies to advance diversity, equity, and inclusion
Vaisala is committed to fostering an inclusive work environment through
clear policies that ensure equal opportunity and non-discrimination.
Our commitments include making employment decisions based on
qualifications and merit, without bias towards any protected characteristic.
Additionally, we offer maternity and parental leave policies aligned with
country-specific requirements to support pregnant employees and new
parents in balancing work and family responsibilities.
To ensure these efforts are effectively carried out, Vaisala has established
training, reporting mechanisms, inclusive practices, and continuous
improvements as part of our procedures. All employees receive regular
training on diversity, equity, inclusion, and anti-discrimination. Vaisala
has clear guidelines and processes for reporting discrimination, which is
promptly investigated by HR, with appropriate actions taken if required.
Vaisala promotes diversity, equity, and inclusion through initiatives like
Employee Resource Groups and mentoring programs, creating a supportive
environment for all employees.
We regularly review and refine our policies to ensure they meet the needs
of our workforce and maintain a high standard of inclusivity.
Vaisala’s Code of Conduct states that the company values a culture
where everyone feels respected, heard, and supported, enabling them
to collaborate and perform at their best. Discrimination, harassment, or
bullying in any form contradicts our values and often violates the law.
This includes discrimination based on ethnic origin, color, religion, gender
identity, age, sex, sexual orientation, political opinion, national extraction or
social origin, disability or marital status, and other forms of discrimination
covered by applicable regulations. Vaisala’s Code of Conduct requires
employees to always treat others with respect and dignity. This entails
listening, valuing diverse perspectives, and eliminating discriminatory
behaviors.
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Processes for engaging with own workers and workers’
representatives about impacts (S1-2)
Vaisala is committed to enhancing diversity, equity, inclusion, and
employee well-being by actively involving our workforce in decision-
making processes. We believe engaging our employees directly is
essential to understanding and addressing their needs. We regularly
gather employee feedback through surveys, focus group discussions, and
one-on-one meetings. This input is crucial in shaping our policies and
initiatives. Feedback from these engagements influences our strategies,
ensuring that our efforts to enhance diversity, equity, inclusion, and well-
being align with our workforce’s actual needs and concerns. Regarding
performance and career development reviews, managers conduct these
discussions directly with their employees. Engagement and discussions
about actions or next career moves are made and agreed together with the
employee. Vaisala also engages directly with its own workforce related to
the identification, assessment, and management of occupational health
and safety risks. To increase the collaboration between Vaisala and its
employees and to increase health and safety awareness and knowledge, we
have established Health and Safety Committees in several locations. Some
of the key tasks of the committees are making development suggestions
about occupational health and safety, monitoring the implementation of
health and safety action plans, and taking part in accident investigations.
Vaisala also encourages its own workforce to proactively report any health
and safety risks in the workplace and make suggestions for improvement.
Engagement at Vaisala occurs at various stages, including planning,
implementing, and reviewing policies and initiatives. This engagement is
carried out through methods such as surveys, focus group discussions,
and regular all-hands meetings. The frequency of these engagements
varies, with most occurring on a quarterly or annual basis, while ad hoc
engagements are conducted as needed when specific issues arise. The
Health and Safety Committees usually convene four times a year. For
performance discussions, engagement occurs once a year at the minimum.
Typically, managers and employees agree to have these reviews four times
a year and can have them more frequently if needed. According to our
annual plan, our employees have their career development discussion with
their managers at the beginning of the calendar year. In this discussion,
they plan and discuss the next possible development actions and any
career aspirations the employee may have.
The HR function, under the leadership of the EVP, Human Resources,
is responsible for ensuring workforce engagement and the integration
of feedback into our strategic approach to diversity, equity, inclusion,
employee well-being, health, and safety.
Vaisala does not currently have a global framework agreement related
specifically to the respect of human rights of its workforce. However, we
maintain open communication with workers' representatives to ensure
that employee perspectives, particularly regarding human rights and
well-being, are integrated into our practices.
We assess the effectiveness of our engagement efforts through employee
feedback and regularly reviewing survey results to measure employee
satisfaction and identify areas for improvement. We also evaluate the
success of implemented initiatives based on employee well-being metrics
and the participation rates in career development programs. Based on
these assessments, adjustments are made to ensure that engagement
remains meaningful and impactful. Regarding health and safety, our ISO
45001-based occupational health and safety management system provides
a foundation for continuous improvement and ensures active engagement
with our own workforce.
Vaisala has taken steps to ensure safe working conditions for individuals
who may be particularly vulnerable to negative impacts and strives for
continuous improvement in this area. These kinds of factors are considered
when developing processes and work instructions. Regarding impacts
related to diversity, equity, and inclusion, Vaisala does not currently
have specific processes to gain insight from particularly vulnerable
or marginalized groups. However, we are committed to enhancing our
engagement approach for these groups and aim to incorporate focused
feedback mechanisms within the next 12 months.
Processes to remediate negative impacts and channels for own
workforce to raise concerns (S1-3)
Vaisala’s HR function is the primary point of contact when concerns are
related to employment unless those concerns reflect breaches of law and
regulations that the employee feels cannot be reported through regular
channels. In these situations, the employee can make a report through the
whistleblowing channel.
The process and principles outlined in Vaisala’s Whistleblowing Policy serve
as a mechanism to raise concerns and provide and enable remedies for
human rights impacts. Currently, Vaisala does not systematically assess if
the human rights impact remedies provided are effective.
Whistleblowing reports can include matters such as breaches of Vaisala’s
Code of Conduct or human rights violations. The whistleblowing channel
is an external secure portal provided by a third party. Additionally, Vaisala
has a proactive health and safety reporting system. We encourage our own
workforce and contractors to proactively report any health and safety risks
in the workplace and make safety improvement suggestions concerning
working conditions and methods.
All Vaisala employees undergo a mandatory Code of Conduct training
biannually. The training includes guidance and instructions for reporting.
Additionally, the information is available on Vaisala’s intranet.
The Audit Committee is responsible for tracking and monitoring issues
raised and addressed, with the Compliance Officer providing quarterly
reports. Currently, the effectiveness of the whistleblowing channel and the
corrective actions have not been assessed.
Vaisala does not currently assess whether people in its workforce are aware
of or trust the whistleblowing channel and the related processes for raising
and addressing their concerns or needs. However, Vaisala’s Whistleblowing
Policy ensures steps are taken to protect those who act in good faith from
any type of retaliation.
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Actions related to material impacts, risks,
and opportunities on own workforce (S1-4)
Actions to prevent or mitigate material negative impacts on own
workforce
Vaisala could potentially have a material negative impact on its own
workforce through work-related accidents, including fatalities. Through the
systematic identification, assessment, and management of occupational
health and safety risks, Vaisala identifies the necessary actions to address
these negative impacts and ensures that its practices do not cause or
contribute to material negative impacts on its own workforce. This process
is carried out in cooperation with our employees and other stakeholders.
Occupational health care participates as an expert in identifying and
managing risks according to the practices of each country. During the
risk assessment process, we evaluate and determine the severity and
probability of risks to which employees may be exposed. Risk assessments
cover both routine and non-routine work. The most significant accident
risks occur in electrical work, working at heights, and when working
with chemicals. We apply a hierarchy of controls to minimize risks. If it is
assessed that an employee may be exposed to a non-negligible risk, we
plan measures to reduce the risk. Our primary goal is to eliminate hazards
or substitute them with less dangerous alternatives. If this is not possible,
we aim to further reduce residual risks by controlling them at the source
through engineering controls. If personal protective equipment is needed,
it is given to employees for free. The quality of the risk assessment and
management process is ensured as part of our system’s internal and
external audits. We also encourage everyone to proactively report any
health and safety risks in the workplace and suggest improvements
concerning the safety of working conditions and methods.
Vaisala’s health and safety team manages material impacts related to
health and safety. All the actions listed below contribute to achieving our
policy objective of decreasing the number of injuries.
Vaisala has not acted to provide or enable remedy in relation to an actual
material impact on its own workforce, as no such impacts occurred in
2024.
HEALTH AND SAFETY TRAINING
We invest in health and safety training for our own workforce to increase
safety awareness and knowledge and ensure that all employees have
the necessary qualifications to perform their work. Our occupational
health and safety practices are covered in a mandatory e-learning course.
In addition to a general orientation, we offer training for supervisors
and specialized training for employees exposed to specific workplace
risks. Occupational safety training is free for our employees and can be
conducted during working hours. Contractors working at our sites also
receive a health and safety orientation. The effectiveness of health and
safety training is tracked through internal health and safety management
system audits. Health and safety training is an ongoing action and there is
no defined time horizon for completing it.
HEALTH AND SAFETY COMMITTEES
To increase the collaboration between Vaisala and its employees and to
increase health and safety awareness and knowledge, we have established
Health and Safety Committees in several locations. Currently, active Health
and Safety Committees are operating in Finland, Canada, Germany, the
United States, the United Kingdom, Japan, France, and China. These local
committees cover all employee groups. The committees have an important
role in monitoring and developing occupational health and safety. Some
of the key tasks of the committees are making development suggestions
about occupational health and safety to the employer and monitoring the
implementation of health and safety action plans. Their tasks also include
making proposals for arranging occupational health and safety training,
on-the-job training and orientation, and participating in actions that
support the working capacity of employees. The committees also monitor
occupational safety issue reports and take part in accident investigations.
The effectiveness of the committees is tracked by monitoring the number
of committees and the number of committee meetings. The work of the
Health and Safety Committees is an ongoing action and there is no defined
time horizon for completing it.
NEW REPORTING TOOL
In 2024, we implemented a new reporting tool for health and safety
incidents and improvements, developed in collaboration with employee
representatives. This tool simplifies the reporting process for our own
workforce and enables more effective monitoring, driving actions more
efficiently. The effectiveness of the new reporting tool is tracked by
monitoring the number of reports.
Actions aimed at delivering positive impacts on own workforce
Various resources are allocated to manage and implement diversity,
equity and inclusion (DEI) initiatives. This includes financial, human, and
technological resources for training, Employee Resource Group (ERG)
activities, wage surveys, and tracking systems for monitoring progress.
Vaisala’s actions to foster an inclusive and supportive work environment
are presented in the accompanying table.
All the actions are ongoing, and there are no defined time horizons for
completing them. However, Vaisala does have time-bound targets, such
as closing the gender pay gap (see the section Targets related to diversity,
equity, and inclusion), and these actions contribute to achieving the targets.
The scope of all the actions includes employees at all locations and job
levels within Vaisala.
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Action Description Tracking and assessing effectiveness
DEI Training and Awareness Vaisala has introduced a DEI e-learning module to increase employee awareness and
understanding of DEI principles.
The effectiveness is tracked through participation rates and feedback from training
sessions.
Establishment of Employee
Resource Groups (ERGs)
The creation of the first ERG, Women@Vaisala & Allies, aims to enhance support
networks and foster a more inclusive workplace culture.
The effectiveness is monitored by tracking the ERG’s activities and its impact on
employee engagement and satisfaction.
Wage Equality Initiatives Regular wage surveys are conducted to identify and address pay gaps, aiming for
wage parity across all job levels and locations.
The effectiveness is tracked through annual surveys and progress reports.
Inclusive Work Environment Policies and practices are implemented to ensure equal treatment and opportunities
for all employees, creating a safe, caring, and accessible working environment.
The effectiveness is tracked through employee feedback, incident reports, and policy
reviews.
Targets related to material impacts, risks, and
opportunities on own workforce (S1-5)
Targets related to health and safety
Vaisala’s target for total recordable injury frequency (TRIF) in 2024 was

number of fatalities, lost time injuries, substitute work, and other injuries
requiring treatment by a medical professional per million hours worked.
The target for 2024 was achieved as Vaisala’s TRIF was 1.82. Performance
against the target is monitored and reviewed monthly. The level achieved in
2024 will be used as the baseline value from which progress is measured.
The target was defined based on our commitment to the International
Labour Organization’s goal of decreasing work-related accidents and
diseases. Occupational health and safety is an important part of all Vaisala
activities. Vaisala is committed to achieving zero work-related fatalities and
eliminating work-related injuries or illnesses. The TRIF target supports the
achievement of our policy objectives.
We have increased collaboration between Vaisala and its employees by
establishing Health and Safety Committees in several locations. These
committees have an important role in setting targets.
The target is monitored monthly by the Vaisala Leadership Team. Vaisala
does not engage directly with its own workforce or worker representatives
to track performance against the target.
Work-related injuries are investigated, and corrective and preventative
actions are defined case by case. Trends are also followed up on, and
annual improvement needs are considered in the annual execution
planning process.
Targets related to diversity, equity, and inclusion
Vaisala has set ambitious diversity, equity, and inclusion (DEI) targets for
2026 and 2030, focusing on various areas such as gender equality, equal
pay, gender balance in tech roles, management positions, and multicultural
representation within the workforce. Our DEI targets align with Vaisala's
mission and policy objectives to cultivate an inclusive, supportive, and
equitable work environment. These targets aim to address disparities and
enhance representation across multiple dimensions relating to diversity.
These targets apply to all employees across all locations and job levels
within Vaisala.
Our methods to define the targets include reviewing regular wage surveys,
DEI index measurements, and feedback from Employee Resource Groups
(ERGs). Significant assumptions to define targets involve alignment
with national, EU, and international policy goals, considering sustainable
development and local contexts. Data sources include internal surveys,
employee feedback, and automated reporting systems.
Various employee groups and representatives have been actively involved
in setting these targets. DEI initiatives are led by a Global Head of DEI with
input from ERGs and other employee groups.
Performance against the targets is monitored through participation rates
in DEI training, feedback from ERGs, and regular DEI index measurements.
We periodically review progress to ensure alignment with our initial
plans and analyze trends or significant changes to identify areas for
improvement.
The target-setting process includes directly engaging with employees and
representatives to set realistic and achievable targets. Regular monitoring
and performance reviews are done to track our progress against the
targets. We continuously collect feedback and conduct analysis to identify
lessons learned and areas for improvement.
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Vaisala’s DEI targets
ACHIEVED LEVEL
Target Description Target level and year Base year (2021)
1
2023 2024
Gender Pay Equality
2
We have maintained good wage equality between genders but want to
close the gap entirely.
Close any unexplained
gender pay gaps entirely by
2025.
On average, women’s wages were
97% of men’s wages for managers
and professionals and 101% for
production employees.
On average, women’s wages were
96% of men’s wages for managers
and professionals and 101% for
production employees.
On average, women’s wages were
94% of men’s wages for managers
and professionals and 99% for
production employees.
DEI Index The DEI Index measures overall inclusion by assessing employees’
feelings about diversity and inclusion at Vaisala.
Increase the DEI Index to 4.3
by 2026 and to 5 by 2030.
4.12 out of 5 4.0 out of 5 4.0 out of 5
DEI Index Gap DEI Index Gap measures the difference in feelings of inclusion between
those identifying as minorities and those not.
Reduce the gap to 0.15 by
2026 and eliminate it by
2030.
0.42 0.35 0.33
Gender Balance
in Tech Roles
This target focuses on achieving a more balanced gender distribution
in tech roles, including expert and manager positions in IT, product
management, and R&D.
Increase representation to
22% by 2026 and to 30%
by 2030.
17% 17% 18%
Gender Balance
in Management
The gender composition of the entire workforce should be reflected in
management.
Increase representation to
30% by 2026 and to 40%
by 2030.
26% 27% 28%
Gender Balance
in Top Management
The gender composition of the entire workforce should be reflected in
top management.
Increase representation to
34% by 2026 and to 40%
by 2030.
23% 28% 25%
Multicultural Talent
in Finland
With significant R&D in Finland and a global export focus, diverse
cultural expertise is essential. We aim to surpass the industry average for
multicultural representation in Finland.
Maintain at 10% by 2026
and increase to 15% by
2030.
7% 10% 10%
Multicultural Talent
in Top Management
As a global company, our top management should reflect our diverse
workforce and align with our growth ambitions.
Increase to 35% by 2026
and to 40% by 2030.
29% 28% 33%
DEI Training Completion We aim for a high completion rate for our DEI training. Increase completion rate
to 70% by 2026 and to 90%
by 2030.
N/A 38% 64.8%
1) The base year values represent the situation in April 2021 when the targets were set. The target for DEI training completion was set in 2023, so the base-year for this target is 2023.
2) Due to different calculation methodologies, these figures are not comparable to the gender pay gap reported in the section Remuneration metrics (S1-16).
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Key employee figures
None of the metrics presented in this section have been validated by an
external body other than the assurance provider.
Characteristics of Vaisala’s employees (S1-6)
Employee data is maintained in Vaisala’s employee information system,
and various reports can be automatically generated to meet all reporting
needs. All employee figures in this sustainability statement are reported in
headcount as of the end of the reporting period.
In 2024, the number of Vaisala’s own employee turnover was 165 and the
rate of own employee turnover was 7.3%.
Employee headcount by gender
Gender Number of employees
Male 1,688
Female 749
Other 0
Not reported 2
Total Employees
1
2,439
1) The most representative number in the financial statements, the total number of employees at
the end of December 2024, is disclosed in the section Personnel of Vaisala Corporation Financial
Statement Release January–December 2024.
Employee headcount in countries where Vaisala has at least 50
employees representing at least 10% of its total number of employees
Country Number of employees
Finland 1,538
United States 352
Employees by contract type and by gender
January 1, 2024 – December 31, 2024
Female Male Other*
Not
disclosed Total
Number of
employees 749 1,688 0 2 2,439
Number of
permanent
employees 685 1,576 0 2 2,263
Number of
temporary
employees 64 112 0 0 176
Number of
non-guaranteed
hours employees 28 50 0 0 78
Number of full-
time employees 692 1,598 0 2 2,292
Number of part-
time employees 29 40 0 0 69
* Gender as specified by the employees themselves.
Employees by contract type and by region
2
January 1, 2024 – December 31, 2024
Finland Americas EMEA APAC Total
Number of
employees 1,538 402 314 185 2,439
Number of
permanent
employees 1,420 401 304 138 2,263
Number of
temporary
employees 118 1 10 47 176
Number of
non-guaranteed
hours employees 76 0 2 0 78
Number of full-
time employees 1,417 398 295 182 2,292
Number of part-
time employees 45 4 17 3 69
2) Americas: North and South America; APAC: Asia Pacific; EMEA: Europe, Middle East and Africa
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Characteristics of non-employee workers in Vaisala’s own
workforce (S1-7)
At the end of the reporting period, there were 40 non-employees in
Vaisala's own workforce, reported in headcount.
The number of non-employee workers is available at any time from
Vaisala’s internal system, but the process includes manual counting of
the non-employees based on information available in the system. A more
automated reporting process is being developed and will be in place in
2025.
Non-employee workers are mostly people provided by undertakings
primarily engaged in employment activities, and some self-employed
people. The non-employee workers operate in multiple roles, such as in IT,
sales, and logistics.
Diversity metrics (S1-9)
Gender distribution at the top management level *
Gender Number of employees Percentage
Female 20 25%
Male 60 75%
Other 0 0%
* Vaisala has defined top management as employees in senior management positions with specific
internal job grades.
Distribution of employees by age group
Age group Number of employees Percentage
Under 30 years old 294 12%
30–50 years old 1,400 57%
Over 50 years old 745 31%
Health and safety metrics (S1-14)
Vaisala's ISO 45001-based occupational health and safety management
system covers 100% of our own workforce. 86% of Vaisala’s own workforce
work on sites where the management system has been audited by an
external party.
In 2024, the number of fatalities as a result of work-related injuries and
work-related ill health in Vaisala’s own workforce was 0. The number of
fatalities as a result of work-related injuries and work-related ill health
for other workers working on Vaisala’s sites was also 0. There were 8
recordable work-related accidents, and the rate of recordable work-related
accidents (TRIF) was 1.82.
The number of hours worked used in calculating the rate of recordable
work-related accidents is partly estimated based on standard hours of work.
Remuneration metrics (S1-16)
In 2024, the gender pay gap at Vaisala, defined as the difference in average
pay levels between female and male employees and expressed as a
percentage of the average pay level of male employees, was 14%.
The annual total remuneration ratio of the highest-paid individual to the
median annual total remuneration of all other employees was 19.3.
When calculating the gender pay gap, the pay level is defined as the gross
hourly pay level. The calculation includes only employees who are active
(including on paid leave, or on unpaid leave), and who self-identify as
female or male. For all employees except those paid hourly, the gross hourly
rate is calculated based on the full-time equivalent annual base salary
divided by yearly working hours. The full-time equivalent annual base
salary is calculated based on the actual base salary and full-time equivalent
working hours recorded in Vaisala's employee information system, and the
yearly working hours are provided by each country. For hourly employees,
the hourly rate recorded in Vaisala’s employee information system is used.
When calculating the annual total remuneration ratio, annual total
remuneration is defined as total taxable compensation paid to employees
in 2024. This information is collected from country-specific payroll.
Incidents, complaints and severe human rights impacts (S1-17)
The number of incidents of discrimination, including harassment, reported
in 2024 was 11.
The number of complaints filed in 2024, excluding incidents of
discrimination and harassment reported above, was 28. These include
complaints filed through channels for people in Vaisala's own workforce
to raise concerns and complaints filed to the National Contact Points
for OECD Multinational Enterprises related to working conditions, equal
treatment and opportunities for all, and other work-related rights, as
defined in paragraph 2 of ESRS S1 Own workforce. The number of incidents
of discrimination, including harassment, and the number of complaints
filed include cases reported to either the HR function or the Compliance
function.
The total amount of fines, penalties, and compensation for damages
resulting from the incidents and complaints disclosed above was EUR 0.
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ESRS S2 Workers in the
value chain
Policies related to value chain workers (S2-1)
Vaisala has a Partner Code of Conduct to manage material impacts on
value chain workers. The policy is aligned with internationally recognized
instruments relevant to value chain workers, including the United Nations
(UN) Guiding Principles on Business and Human Rights.
The Partner Code of Conduct relates to all three of Vaisala’s material
impacts on value chain workers associated with health and safety, child
labor, and forced labor. For more information on these material impacts,
see the section Vaisala’s material impacts, risks, and opportunities.
The scope and general objectives of the Partner Code of Conduct are
disclosed in the section Policies related to climate change mitigation and
adaptation (E1-2).
The President and CEO is the most senior level in Vaisala's organization
accountable for implementing policies.
Human rights policy commitments related to value chain workers
The Partner Code of Conduct requires that our partners share Vaisala’s
commitment to human rights. This includes treating people with respect
and dignity, encouraging diversity, remaining receptive to diverse opinions,
promoting equal opportunity for all, and fostering an inclusive and ethical
culture. All these commitments are in accordance with the Universal
Declaration of Human Rights, the International Bill of Human Rights, and
the core International Labor Organization (ILO) Conventions. Partners are
expected to conduct human rights due diligence to avoid and address
potential adverse impacts, in accordance with the UN Guiding Principles
on Business and Human Rights and the OECD Guidelines for Multinational
Enterprises on Responsible Business Conduct.
In relation to value chain workers, Vaisala’s supplier code of conduct
(Vaisala Partner Code of Conduct), addresses trafficking in human beings,
forced or compulsory labor, and child labor. We also expect our partners
to comply with all relevant labor laws, ensuring fair working conditions,
accurate employment records, and clear communication of employment
terms. Equal opportunity and non-discrimination in employment must be
upheld, along with a zero-tolerance policy on harassment. Additionally,
employees should have regular rest periods, and their rights to organize
and engage in collective bargaining must be respected. Systems should be
in place to monitor and fulfill these requirements.
Vaisala’s partners are required to have their own supplier code of conduct
or a similar policy for their own business partners that covers principles
and requirements equivalent to Vaisala’s Partner Code of Conduct. They
are also required to ensure that their business partners comply with
the principles and requirements and actively monitor their partners’
compliance.
Partners shall provide their employees with the means to raise concerns
about any of the compliance requirements outlined in the Partner Code
of Conduct, and any employee who makes such a report in good faith
shall be protected from retaliation. According to Vaisala’s Whistleblowing
Policy, all suspected human rights violations can be reported in Vaisala’s
whistleblowing channel, through which stakeholders can also seek
remedies.
In 2024, no cases of non-respect of the UN Guiding Principles on Business
and Human Rights, the ILO Declaration on Fundamental Principles and
Rights at Work, or the OECD Guidelines for Multinational Enterprises
that involve value chain workers were reported in Vaisala’s upstream and
downstream value chains.
Processes for engaging with value chain workers about
impacts (S2-2)
At Vaisala, no engagement occurs with value chain workers or their
legitimate representatives directly, or with credible proxies with insight
into their situation. We have assessed direct engagement with affected
stakeholders or their representatives to be challenging. However, we aim to
use non-governmental organizations as credible proxies representing the
views of affected value chain workers. In 2024, we tried contacting non-
governmental organizations for this purpose but received no response. We
will continue these efforts in 2025.
Processes to remediate negative impacts and channels for
value chain workers to raise concerns (S2-3)
The process and principles outlined in Vaisala’s Whistleblowing Policy serve
as a mechanism for value chain workers to raise their concerns and as a
mechanism to provide and enable remedies for human rights impacts.
The Whistleblowing Policy applies to anyone in Vaisala’s value chains who
wants to share a concern by submitting a whistleblowing report. Reported
matters can include, for example, violations of human rights. The following
principles apply to all investigations: reports are handled confidentially,
investigated by impartial individuals, follow-up questions are submitted
securely, and the identity of anonymous reporters is not sought or revealed
at any stage. The channel is an external secure portal provided by a third party.
The Compliance Officer maintains records of reported matters and
corrective actions to facilitate the tracking and monitoring of issues
raised and addressed. Vaisala has a Whistleblowing Team that reviews
these reports, consisting of members from the Legal department, Finance
& Control, Human Resources, and relevant business areas as required.
Concerns raised through the whistleblowing channel are reported to
the Audit Committee by the Compliance Officer. Vaisala currently has no
process in place to ensure the effectiveness of the channel.
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Vaisala does not currently track or assess if value chain workers are aware
of and trust these processes as a way to raise their concerns or needs
and have them addressed. Both Vaisala’s Partner Code of Conduct and
the Whistleblowing Policy address the protection against retaliation for
individuals who raise concerns.
Actions related to material impacts, risks, and opportunities on
value chain workers (S2-4)
Actions on material impacts on value chain workers
Impacts on value chain workers are managed by considering human
rights aspects in supplier and subcontractor selection and management
processes as well as requiring suppliers and subcontractors to adhere
to Vaisala’s Partner Code of Conduct. This is supported by supplier
assessments and audits. These are ongoing actions that will also continue
in future reporting years.
The key actions completed in the reporting year include updating Vaisala’s
Partner Code of Conduct, starting to use EcoVadis assessments to evaluate
supplier performance in human rights-related areas, and improving the
overall subcontracting process regarding human rights due diligence.
Vaisala has no additional actions or initiatives in place with the primary
purpose of delivering positive impacts for value chain workers.
During 2025 Vaisala aims to further improve the effective integration of
human rights due diligence in supplier and subcontractor selection and
management processes. This includes increasing employees’ and partners’
understanding of human rights due diligence in the value chains.
Suppliers and subcontractors in the scope of each of the actions are
selected based on risk assessments and spend.
All the actions are expected to enhance our ability to monitor and improve
human rights practices within our value chains, contributing to achieving
our policy objectives and targets. Vaisala does not currently track or assess
the effectiveness of the actions in delivering the intended outcomes for
affected stakeholders. However, Vaisala will monitor the improvements
in our suppliers' EcoVadis scores for the Labor & Human Rights and
Sustainable Procurement areas, which is expected to indirectly indicate the
actions’ effectiveness.
No severe human rights issues or incidents connected to Vaisala’s
upstream and downstream value chains were reported in 2024.
Vaisala has not taken action to provide or enable remedy in relation to an
actual material impact during the reporting period.
To manage the impacts, Vaisala has allocated part-time human resources
from several functions. In addition, financial resources are allocated to
supplier assessments and audits.
Processes for identifying appropriate actions in response to actual or
potential negative impacts on value chain workers
Vaisala carries out a human rights due diligence process that involves
identifying and addressing actual or potential negative impacts on value
chain workers. The current steps include:
• Risk assessment: analyzing the value chains to identify areas where
workers might be at risk.
• Impact analysis: evaluating the severity and likelihood of identified risks.
• Action planning: developing appropriate measures to prevent, mitigate,
or remediate negative impacts.
• Implementation: executing the action plan with clear responsibilities
and timelines.
• Monitoring and reporting: tracking the results of actions and making
necessary adjustments, while reporting progress to stakeholders.
Vaisala has not defined an approach to ensure that processes to provide or
enable remedies in the event of material negative impacts are available and
effective in their implementation and outcomes.
Targets related to material impacts, risks, and opportunities on
value chain workers (S2-5)
To monitor the progress against our policy objectives related to reducing
negative impacts on value chain workers, we have set targets for the
EcoVadis assessment coverage of our direct spend and the improvement
of EcoVadis scores for our direct suppliers.
The targets were set for direct suppliers, as the most severe human rights
risks are related to the direct supply chain, especially electronics.
The rating methodology of EcoVadis measures the quality of a company’s
sustainability management system through its policies, actions, and
reporting of KPIs across four categories: Environment, Labor & Human
Rights, Ethics, and Sustainable Procurement. Out of these categories, we
set score improvement targets for the categories that are most relevant
regarding the impacts on value chain workers: Labor & Human Rights and
Sustainable Procurement.
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The EcoVadis assessment results are shown on a scorecard that is valid
for one year at a time. EcoVadis scorecards that expired during the last six
months of the assessment period are included in the calculation.
Target
description
Performance 2024
(baseline) Target 2025
EcoVadis assessed direct spend 74% 75%
Average EcoVadis score
improvement in Labor and
human rights for our direct
suppliers
59.7/100 + 1.0 points from 2024
Average EcoVadis score
improvement in Sustainable
procurement for our direct
suppliers
54.2/100 + 1.0 points from 2024
Stakeholders have not been involved in setting the targets. Vaisala did not
engage directly with workers in the value chain, their representatives, or
proxies during the target-setting process, performance tracking, or when
identifying improvements.
Conflict minerals
Conflict minerals is an entity-specific sustainability matter for Vaisala, not
covered by the ESRS.
Policies related to conflict minerals
The management of our impacts related to conflict minerals is guided
by our Code of Conduct, which states our commitment to responsible
sourcing of minerals, and our Partner Code of Conduct, which requires our
suppliers to source minerals responsibly.
Actions related to conflict minerals
Our operating model to ensure the responsibility of the minerals supply
chain is guided by the OECD Due Diligence Guidance for Responsible
Supply Chains of Minerals from Conflict-Affected and High-Risk Areas.
We use the Responsible Minerals Initiative’s Conflict Minerals Reporting
Template (CMRT) to collect and transfer information about the source and
origin of tin, tantalum, tungsten, and gold (3TG) through the supply chain.
We also expect our suppliers to establish systems and processes for the
responsible sourcing of these minerals and to collaborate with Vaisala on
conflict minerals due diligence. Furthermore, we expect our suppliers to
require the same from their suppliers.
These are all ongoing actions, and they cover the entire supply chain of the
minerals.
Targets related to conflict minerals
We assess the progress related to our policy objective of responsibly
sourcing minerals by monitoring the level of supply chain transparency
achieved each year. Vaisala’s target for 2024 was for at least 90% of
suppliers in the conflict minerals data collection scope to deliver a CMRT
to Vaisala. The target scope includes active suppliers from whom Vaisala
purchases parts or products that contain or may contain 3TG metals. The
target was set based on Vaisala’s estimation of a realistic level to achieve.
Stakeholders have not been involved in setting the target.
Metrics related to conflict minerals
The progress against the target is monitored monthly through progress
reports provided by a third-party data collector. In 2024, the target was
exceeded, as 100% of suppliers in the conflict minerals data collection
scope delivered a CMRT to Vaisala. This metric has not been validated by an
external body other than the assurance provider.
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Governance
information
G1 Business conduct 82
Business conduct policies (G1-1) 82
Management of relationships with suppliers (G1-2) 82
Prevention and detection of corruption and bribery (G1-3) 83
Incidents of corruption and bribery (G1-4) 84
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G1 Business conduct
Business conduct policies (G1-1)
Vaisala has an International Anti-Corruption Policy and a Whistleblowing
Policy to manage material impacts related to business conduct matters.
The President and CEO is the most senior level in Vaisala's organization
accountable for implementing policies. Vaisala makes all its policies
available to potentially affected stakeholders, and stakeholders who need
to help implement them through training and information sharing.
The general objective of the International Anti-Corruption Policy is
to prevent corruption and ensure that all business is conducted in a
legitimate, ethical, and transparent manner. This is monitored with
regular audits and compliance checks to ensure adherence to anti-
corruption laws and regulations. The policy relates to the potential
material negative impacts associated with corruption and bribery. The
policy applies to Vaisala’s employees and all business partners across all
activities and geographies in both the upstream and downstream value
chains.
The general objective of the Whistleblowing Policy is to provide a safe and
confidential way for employees to report unethical or illegal activities.
The Compliance Officer regularly reports on the cases and the process to
the Vaisala Audit Committee. The policy relates to the potential material
negative impact associated with the protection of whistleblowers. The
policy is global in scope, applying to all regions where Vaisala operates,
and considers local laws and regulations. Certain geographical exclusions
may apply where local laws and regulations overrule Vaisala’s policies.
For more information on the impacts related to business conduct
matters, see the section Vaisala’s material impacts, risks, and
opportunities.
Vaisala’s whistleblowing channel serves as a mechanism for raising
concerns. All internal and external stakeholders can share concerns by
submitting a whistleblowing report. Reported matters can include, for
example, breaches of Vaisala’s Code of Conduct or human rights violations.
The investigation is conducted by the Compliance Officer with the support
of the General Counsel. The whistleblowing channel is provided by a third
party. Vaisala’s Code of Conduct and the Whistleblowing Policy guarantee
that any employee who makes a report in good faith shall be protected
from retaliation.
Employees are trained at least biannually to recognize and report any
behavior that may violate Vaisala’s Code of Conduct. The Compliance
Officer, who is the primary recipient of the reports, actively participates in
training related to whistleblowing reports.
The processes and principles outlined in the Whistleblowing Policy also
serve as mechanisms to investigate business conduct incidents, including
corruption and bribery. These principles also aim to ensure that incidents
are processed promptly, independently, and objectively.
Based on our internal assessments, the Sales and Marketing and
Procurement and Supply Chain Management functions are identified
as having the highest risk of exposure to corruption and bribery. Sales
and Marketing employees deal with third-party agents, customers, and
incentive-based compensation structures, while Procurement and Supply
Chain Management employees interact with external vendors, suppliers,
and large financial transactions.
Management of relationships with suppliers (G1-2)
Responsible supply chains
In its supply chain, Vaisala seeks to promote competitive advantages and
innovations responsibly through cooperation. Our business operations are
based on high mix and low volumes. Managing this complexity requires
effective coordination of hundreds of suppliers and selected strategic
partners. To deliver on our customer promise and meet stakeholder
expectations, we must have a reliable and responsible supply chain. We set
strict requirements for our suppliers and closely cooperate with them over
the long term, enabling both parties to develop their operations further.
Our direct suppliers are generally located close to our product development
operations and manufacturing sites. We purchase subassemblies,
components, and mechanical parts mainly from Finland, other European
countries, and the United States. Our upstream supply chains resemble
typical supply chains in the global electronics manufacturing industry.
Supplier management
Vaisala’s supplier management model has five supplier categories:
temporary, potential, approved, preferred, and strategic. In addition to
these categories, suppliers may be, for example, in phase-out when their
contracts are being discontinued gradually or on a watch list when they are
monitored closely due to serious issues experienced over the long term.
The classification defines the relationship between Vaisala and the supplier
and outlines the management model for each category.
All suppliers are expected to meet certain requirements before they can
be approved and categorized. The requirements for suppliers are based on
classification, risk assessments, and spend. Suppliers must also commit to
the Partner Code of Conduct.
We partner with EcoVadis to assess the sustainability of our suppliers and
encourage them to use the assessment results to continuously improve
their sustainability practices. For information on our targets related to
EcoVadis assessments, see the section Targets related to material impacts,
risks, and opportunities on value chain workers (S2-5). We also use a
Supplier Sustainability Self-Assessment Questionnaire (SAQ) for supplier
assessment and development. Should a supplier’s assessment not meet
Vaisala’s requirements, the supplier is expected to implement corrective
measures to improve their sustainability as part of their comprehensive
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development plan. The EcoVadis assessment and SAQ are also used to
assess the sustainability of new suppliers.
As part of our supplier management process, we conduct quality, supply
chain, and process audits. In these audits, we also check aspects related
to sustainability, such as a supplier’s adherence to Vaisala’s Partner Code
of Conduct, labor and human rights, occupational safety, environmental
management, product safety, and conflict mineral management.
Prevention and detection of corruption and bribery (G1-3)
Vaisala maintains a zero-tolerance policy toward all forms of corruption.
The company's International Anti-Corruption Policy strictly prohibits
offering, giving, soliciting, arranging, demanding, or accepting bribes,
whether directly or through third parties. The policy includes clear
guidelines on acceptable hospitality and entertainment. Periodic training
on the Code of Conduct for employees also addresses the prevention of
corruption and bribery. Additionally, specific Anti-Corruption Policy training
has been tailored for employees who, according to a risk analysis, might
encounter challenging situations in their work.
The prevention of corruption and bribery is also a priority within Vaisala’s
network of partners, through which the company serves customers
worldwide. This network includes distributors, agents, and resellers
in over 100 countries. Given that Vaisala's business operations span a
vast geographical area, including regions with challenging business
environments, special attention is paid to selecting business partners.
Vaisala’s agreements with partners typically include strict clauses for
immediate termination if a partner violates the Code of Conduct or the
Anti-Corruption Policy. Vaisala also offers e-training on the Code of
Conduct, specifically targeted at distribution partners. The completion of
this training is monitored via a training system. The training emphasizes
anti-corruption and bribery, ensuring that partners understand Vaisala’s
principles and can act accordingly in all situations.
Vaisala's investigation process is designed to ensure impartiality and
thoroughness, and the company has a structured process to report
the outcomes of investigations to its administrative, management, and
supervisory bodies. The Whistleblowing Team, responsible for handling
reports of suspected non-compliance with laws, regulations, and
Vaisala's internal rules, includes senior leaders not involved in day-to-day
management related to the reported matter. The team comprises the
Group General Counsel, the Chief Financial Officer, the Executive Vice
President of Human Resources, and, when necessary, the Executive
Vice Presidents of the business area involved. The Compliance Officer,
responsible for presenting the reported cases, also plays a crucial role in
maintaining objectivity. By structuring the investigation process this way,
Vaisala aims to prevent conflicts of interest and ensure that investigations
are conducted independently of those involved. Additionally, the
Compliance Officer reports concerns raised through the whistleblowing
channel to the Audit Committee.
Vaisala ensures that its policies, including the Anti-Corruption Policy
and the Code of Conduct, are communicated effectively to relevant
stakeholders. This communication is achieved through regular training
sessions tailored to different employee groups, depending on their roles
and the risks they might encounter.
All employees undergo mandatory Code of Conduct training biannually,
including topics related to business conduct matters and the prevention
and detection of corruption and bribery. The training covers 100% of
functions identified as having the highest risk of exposure to corruption
and bribery. For the Board of Directors, the training is voluntary.
Additionally, between the more comprehensive training sessions, all
employees receive a mandatory shorter reminder training. In addition to
general training, we provide our employees with targeted training. These
sessions are often offered in smaller groups and conducted in person. The
nature, scope, and depth of this training are tailored to meet the specific
needs and risk profiles of different employee groups.
Actions related to the prevention and detection of corruption and
bribery
Key actions related to the prevention and detection of corruption and
bribery taken in 2024 and their expected outcomes are disclosed below.
All the actions listed below contribute to achieving our policy objectives
disclosed in the section Business conduct policies (G1-1). Vaisala has no
actions planned for the future. Vaisala has not set sustainability targets
related to business conduct, as no relevant targets have been identified.
INTERNATIONAL ANTI-CORRUPTION POLICY UPDATE
The update was conducted to align with global best practices and ensure
the policy's relevance in the current business environment. The expected
outcome is enhanced awareness and stricter adherence to anti-corruption
guidelines across all levels of the organization.
WHISTLEBLOWING POLICY UPDATE
This update aimed to provide a more robust framework for reporting
unethical behavior and protecting whistleblowers. The expected outcome
is an increase in the number of reports and earlier detection of potential
issues, contributing to a more transparent and accountable organization.
ANTI-CORRUPTION AND BRIBERY RISK ASSESSMENT
The risk assessment focused on high-risk areas within the sales
organization and other relevant groups across all geographies. It covered
activities that could be exposed to corruption or bribery risks, including
interactions with customers, suppliers, and other third parties in both
upstream and downstream operations. The expected outcome is the
identification of potential risks and implementation of targeted mitigation
strategies, reducing the likelihood of corruption and bribery incidents.
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ANTI-CORRUPTION AND COMPLIANCE TRAINING
Training sessions were provided to parts of the sales organization and
other relevant groups, facilitated by the Compliance Officer. The expected
outcome is an increased awareness and understanding of anti-corruption
practices, leading to more effective prevention of unethical behavior and
enhanced compliance with the organization's policies.
Incidents of corruption and bribery (G1-4)
None of the metrics presented in this section have been validated by an
external body other than the assurance provider.
In 2024, there were no convictions for violation of anti-corruption and anti-
bribery laws, no identified breaches in the procedures and standards of
anti-corruption and anti-bribery, and no confirmed incidents of corruption
or bribery. Therefore, actions taken to address breaches in procedures and
standards of anti-corruption and anti-bribery have not been necessary. If
they did occur, disciplinary actions would be taken according to Vaisala’s
policies.
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Financial key figures
EUR million 2024 2023 2022 2021 2020
Net sales 564.6 540.4 514.2 437.9 379.5
exports and international operations, % 98.0 98.0 98.0 98.0 97.0
Gross margin, % 56.3 55.8 54.8 55.2 56.1
EBITA 90.3 74.7 70.7 61.0 52.1
% of net sales 16.0 13.8 13.8 13.9 13.7
Operating result 82.9 66.6 62.5 50.1 44.8
% of net sales 14.7 12.3 12.2 11.5 11.8
Result before taxes 80.8 63.1 59.6 48.3 41.3
% of net sales 14.3 11.7 11.6 11.0 10.9
Result for the financial year 63.7 48.9 45.1 39.5 32.8
% of net sales 11.3 9.1 8.8 9.0 8.7
R&D expenditure 68.6 67.7 62.4 55.3 53.2
% of net sales 12.1 12.5 12.1 12.6 14.0
Depreciation, amortization and impairment 24.3 24.3 23.6 21.6 21.1
EUR million 2024 2023 2022 2021 2020
Cash and cash equivalents 88.8 90.3 55.5 77.9 45.4
Equity 308.6 267.9 250.5 230.3 205.5
Statement of financial position total 589.4 442.8 439.2 408.0 351.8
Return on equity, % 22.1 18.9 18.7 18.1 16.3
Solvency ratio, % 52.4 61.3 58.1 57.2 59.0
Interest-bearing liabilities 129.5 62.1 63.4 50.2 57.0
Net debt 40.6 -28.2 7.9 -27.7 11.6
Gearing, % 13.2 -10.5 3.2 -12.0 5.7
Net working capital 75.1 72.9 82.4 44.5 61.5
Capital expenditure* 19.1 13.9 13.7 19.2 31.0
% of net sales 3.4 2.6 2.7 4.4 8.2
Cash flow from operating activities 78.9 83.8 29.8 80.0 41.0
Cash conversion 1.0 1.3 0.5 1.6 0.9
Orders received 565.6 528.1 500.8 455.2 382.8
Order book at the end of financial year 215.0 172.5 154.6 160.0 137.8
Personnel expenses 225.3 210.9 190.4 174.3 154.1
Average employees 2,368 2,327 2,141 1,967 1,929
Employees at the end of financial year 2,439 2,314 2,235 1,979 1,939
* Excluding the impact of acquired businesses
** As of the beginning of 2023, Weather and Environment business area’s subscription business has been excluded from orders received and order
book. Year 2022 has been reported accordingly.
*** Number of employees includes persons in long-time absence as of January 1, 2021. Year 2020 has been adjusted accordingly.
Key figures
***
**
***
**
Key figures are a part of the Board of Directors' Report
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Share key figures
EUR 2024 2023 2022 2021 2020
Earnings per share 1.76 1.35 1.24 1.08 0.91
Diluted earnings per share 1.75 1.35 1.24 1.07 0.91
Cash flow from operating activities per share 2.17 2.31 0.82 2.21 1.14
Equity per share 8.50 7.39 6.91 6.36 5.70
Dividend per share* 0.85 0.75 0.72 0.68 0.61
Dividend per earnings**, % 48.4 55.6 57.9 62.9 66.9
Effective dividend yield**, % 1.76 1.89 1.83 1.28 1.51
Price per earnings 27.57 29.51 31.71 49.31 44.34
Series A share price development
highest price 50.00 44.55 54.40 55.80 42.50
lowest price 32.60 30.30 36.15 30.00 21.65
volume-weighted average price 41.95 38.28 43.03 39.45 32.58
closing price 48.40 39.70 39.45 53.30 40.35
EUR 2024 2023 2022 2021 2020
Market capitalization of shares outstanding at
the end of financial year***, MEUR 1,756.2 1,439.2 1,429.2 1,924.2 1,452.6
Series A shares traded
pieces 2,808,545 3,089,946 2,384,806 2,939,088 3,852,297
% of entire series 8.6 10.4 8.0 9.9 13.0
Number of shares 36,436,728 36,436,728 36,436,728 36,436,728 36,436,728
A shares 32,809,875 29,705,636 29,705,636 29,705,636 29,705,636
K shares 3,626,853 6,731,092 6,731,092 6,731,092 6,731,092
Number of shares outstanding at the end of
financial year***, pieces 36,284,579 36,251,252 36,228,241 36,101,073 35,999,689
* Proposal by the Board of Directors
** Calculated according to the proposal by the Board of Directors
*** Including series A and K shares, excluding treasury shares. Series K shares are valued using the closing price for the series A share on the last
trading day of December.
Trading information is based on Nasdaq Helsinki Ltd. statistics.
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Calculation of key figures
Earnings/share, EUR = Result for the period +/- non-controlling interest
Average number of shares outstanding
Cash flow from business = Cash flow from business operations
operations/share, EUR Number of shares outstanding at the end of the period
Equity/share, EUR = Total equity attributable to owners of parent company
Number of shares outstanding at the end of the period
Dividend/share, EUR = Dividend
Number of shares outstanding at the end of the period
Dividend/earnings, % = Dividend
x 100
Result for the period +/- non-controlling interest
Effective dividend yield, % = Dividend / share
x 100
Closing price for the series A share at the end of the period
Price/earnings (P/E) = Closing price for the series A share at the end of the period
Earnings / share
Market capitalization, MEUR = Closing price for the series A share x number of shares outstanding
Alternative performance measures
Vaisala presents in its financial reporting alternative performance measures, which describe businesses’
financial performance and its development as well as investments and return on equity. In addition to
accounting measures which are defined or specified in IFRS, alternative performance measures complement
and explain presented information. Vaisala presents in its financial reporting the following alternative
performance measures:
Net sales with comparable = Net sales converted to euros with exchange rates used during the
exchange rates comparison period
Gross margin, % = Net sales - Cost of sales
x 100
Net sales
Operating expenses = Sales, marketing and administrative costs + research and development costs
EBITA = Result before income taxes, financial income, and expenses, share of result in
associated company, amortization and impairment of identified intangible assets
related to the business combinations, and income and expenses related to (non-
operative) earn-outs of business combinations as presented in Consolidated Statement
of Income. Operating result describes profitability and development of business areas’
performance.
Operating result = Result before income taxes, financial income and expenses, and share of result
in associated company as presented in Consolidated Statement of Income. Operating
result describes profitability and development of business areas’ performance.
Result before taxes = Result before taxes as presented in Consolidated Statement of Income.
Return on equity = Result for the period
x 100
(ROE), % Total equity (average)
Solvency ratio, % = Total equity
x 100
Statement of financial position total – advances received
Cash conversion = Cashflow from operating activities / Operating result
Investments = Gross investments in non-current intangible assets as well as property, plant and equipment
Order book = Performance obligations that were unsatisfied or partially unsatisfied and
undelivered part the lease agreements at the end of the period
Net debt = Interest-bearing liabilities - cash and cash equivalents
Gearing, % = Interest-bearing liabilities – cash and cash equivalents
x 100
Total equity
Net working capital = Inventories + non-interest-bearing receivables (trade receivables + contract assets and
other non-interest-bearing receivables) – non-interest-bearing liabilities (trade payables
+ contract liabilities and other accrued revenue + other non-interest-bearing liabilities)
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Consolidated financial statements 89
Consolidated statement of income 89
Consolidated statement of
comprehensive income 90
Consolidated statement of
financial position 91
Consolidated cash flow statement 93
Consolidated statement of
changes in equity 94
Notes to the consolidated
financial statements 95
Financial development
1. Reportable segments 99
2. Geographical segments 100
3. Revenue from contracts
with customers 101
4. Other operating income
and expenses 102
5. Personnel expenses and
number of personnel 103
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.
6. Pension obligations 103
7. Share-based payments 105
8. Research and development
expenditure 106
9. Financial income and expenses 106
10. Income taxes 107
11. Earnings per share 111
Net working capital
12. Trade receivables and
other receivables 111
13. Inventories 113
14. Trade payables and
other liabilities 113
15. Provisions 113
Intangible and tangible assets
16. Intangible and tangible assets 114
17. Leases 120
Capital structure
18. Shareholders’ equity 122
19. Financial risk management 124
20. Non-current receivables 125
21. Financial assets and liabilities 125
22. Interest-bearing liabilities
and other adjustments in
cash flow statement 129
23. Cash and cash equivalents 129
24. Contingent liabilities and
pledges given 130
Consolidation
25. Business combinations 131
26. Subsidiaries 134
27. Associated company 135
Other notes
28. Related party transactions 136
29. Auditor’s fees 138
30. Application of new and revised
IFRS accounting standards and
interpretations in issue but
not yet effective 138
Parent Company Financial Statements 140
Parent company income statement 140
Parent company balance sheet 141
Parent company cash flow statement 143
Notes to the Parent Company
Financial Statements 144
1. Accounting principles 144
2. Net sales 146
3. Other operating income
and expenses 147
4. Personnel expenses and
number of employees 148
5. Depreciation, amortization and
impairment 150
6. Financial income and expenses 150
7. Direct taxes 150
8. Non-current assets and
other long-term investments 151
9. Other receivables 154
Financial statements 2024
10. Deferred assets 154
11. Deferred tax assets and liabilities 155
12. Provisions 155
13. Shareholders’ equity 155
14. Other non-current and
current liabilities 156
15. Loans from financial
institutions 156
16. Non-current and current accrued
expenses and deferred income 157
17. Receivables and liabilities
from other companies in
Vaisala Group 157
18. Contingent liabilities and
pledges given 157
19. Auditor’s fees 157
Signing of the Board of Directors’ report
and financial statements 159
Auditor’s Report 160
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Consolidated statement of income
EUR million Note
Jan 1–Dec 31,
2024
Jan 1–Dec 31,
2023
Net sales 1, 2, 3 564.6 540.4
Cost of goods sold 5, 13, 16 -246.5 -238.8
Gross profit 318.1 301.7
Sales, marketing and administrative costs 5, 7, 16 -167.2 -168.2
Research and development costs 5, 7, 8, 16 -68.6 -67.7
Other operating income and expenses 4 0.6 0.9
Operating result 82.9 66.6
Share of result in associated company 27 0.2 0.2
Financial income 9 9.4 8.2
Financial expenses 9 -11.8 -11.9
Result before taxes 80.8 63.1
Income taxes 10 -17.0 -14.2
Result for the financial year 63.7 48.9
Consolidated financial statements
EUR million Note
Jan 1–Dec 31,
2024
Jan 1–Dec 31,
2023
Attributable to
Owners of the parent company 63.7 48.9
Earnings per share for result attributable to the equity holders of
the parent company 11
Earnings per share, EUR 1.76 1.35
Diluted earnings per share, EUR 1.75 1.35
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Consolidated statement of comprehensive income
EUR million Note
Jan 1–Dec 31,
2024
Jan 1–Dec 31,
2023
Items that will not be reclassified to profit or loss (net of taxes)
Actuarial profit (loss) on post-employment benefits 6 0.0 -0.0
Total 0.0 -0.0
Items that may be reclassified subsequently to profit or loss
Translation differences 4.3 -3.3
Total 4.3 -3.3
Total other comprehensive income 4.4 -3.3
Comprehensive income for the financial year 68.1 45.6
Attributable to
Owners of the parent company 68.1 45.6
The notes are an essential part of the financial statements.
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Consolidated statement of financial position
EUR million Note Dec 31, 2024 Dec 31, 2023
Assets
Non-current assets
Intangible assets 16 151.9 62.5
Property, plant and equipment 16 105.6 95.0
Right-of-use assets 17 21.4 13.1
Investments in shares 0.1 0.1
Investment in associated company 27 1.6 1.4
Non-current receivables 20 1.2 1.3
Deferred tax assets 10 12.7 7.8
Total non-current assets 294.5 181.1
Current assets
Inventories 13 57.8 58.8
Trade and other receivables 12 111.0 85.5
Contract assets and other accrued revenue 3 32.2 24.2
Income tax receivables 5.2 2.8
Cash and cash equivalents 23 88.8 90.3
Total current assets 295.0 261.7
Total assets 589.4 442.8
EUR million Note Dec 31, 2024 Dec 31, 2023
Equity and liabilities
Equity 18
Share capital 7.7 7.7
Other reserves 0.7 0.6
Translation differences 5.1 0.8
Treasury shares -4.1 -4.2
Retained earnings 299.2 263.0
Total equity attributable to owners of parent company 308.6 267.9
Total equity 308.6 267.9
Non-current liabilities
Interest-bearing borrowings 21 105.0 50.0
Interest-bearing lease liabilities 17 21.4 9.3
Post-employment benefits 6 2.1 2.3
Deferred tax liabilities 10 5.3 2.9
Provisions 15 0.6 0.4
Other non-current liabilities 21 6.7 4.2
Total non-current liabilities 141.2 69.0
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EUR million Note Dec 31, 2024 Dec 31, 2023
Current liabilities
Interest-bearing borrowings 21 - 0.0
Interest-bearing lease liabilities 17 3.1 2.8
Trade and other payables 14 95.7 66.5
Contract liabilities and other deferred revenue 3 28.4 30.7
Income tax liabilities 9.9 3.3
Provisions 15 2.7 2.5
Total current liabilities 139.7 105.9
Total liabilities 280.9 175.0
Total equity and liabilities 589.4 442.8
The notes are an essential part of the financial statements.
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Consolidated cash flow statement
EUR million Note
Jan 1-Dec 31,
2024
Jan 1-Dec 31,
2023
Cash flow from operating activities
Result for the financial period 63.7 48.9
Depreciation, amortization and impairment 16 24.3 24.3
Financial income and expenses 9 2.4 3.7
Gains and losses on sale of intangible assets and property, plant and equipment 4 -0.0 -0.2
Share of result in associated company 27 -0.2 -0.2
Income taxes 10 17.0 14.2
Other adjustments 22 -0.4 -0.7
Inventories, increase (-) / decrease (+) 13 0.2 3.0
Non-interest-bearing receivables, increase (-) / decrease (+) 12 -31.8 16.2
Non-interest-bearing liabilities, increase (+) / decrease (-) 14 20.9 -9.7
Changes in working capital -10.7 9.5
Interests and other financial items received 9 2.2 1.7
Interests and other financial items paid 9 -3.7 -4.4
Income taxes paid 10 -15.8 -12.9
Cash flow from operating activities 78.9 83.8
Cash flow from investing activities
Acquisition of subsidiaries, net of cash acquired 25 -20.9 -
Capital expenditure on intangible assets and property, plant and equipment* 16, 25 -84.8 -13.9
Proceeds from sale of intangible assets and property, plant and equipment 4 0.1 0.3
Cash flow from investing activities -105.6 -13.7
EUR million Note
Jan 1-Dec 31,
2024
Jan 1-Dec 31,
2023
Cash flow from financing activities
Dividends paid 18 -27.2 -26.1
Purchase of treasury shares 18 -0.8 -2.1
Change in loan receivables 0.1 -0.3
Proceeds from borrowings 21 70.0 77.4
Repayment of borrowings 21 -15.0 -79.9
Principal payments of lease liabilities 17 -2.8 -3.1
Cash flow from financing activities 24.2 -34.1
Change in cash and cash equivalents, increase (+) / decrease (-) -2.4 36.0
Cash and cash equivalents at the beginning of the financial year 90.3 55.5
Change in cash and cash equivalents -2.4 36.0
Effect from changes in exchange rates 1.0 -1.2
Cash and cash equivalents at the end of the financial year 23 88.8 90.3
The notes are an essential part of the financial statements.
*
)
Capital expenditure in intangible assets and property, plant and equipment related to business combinations (WeatherDesk business)
in the financial year 2024 totaled to EUR 65.7 million.
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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, 2022 7.7 3.5 4.1 -3.3 238.5 250.5 0.0 250.5
Change in share-based payments -2.9 2.9
Equity at Jan 1, 2023 7.7 0.6 4.1 -3.3 241.4 250.5 0.0 250.5
Result for the financial year 18 48.9 48.9 48.9
Other comprehensive income 18 -0.0 -3.3 0.0 -3.3 -3.3
Dividend distribution 18 -26.1 -26.1 -26.1
Purchase of treasury shares 18 -2.1 -2.1 -2.1
Share-based payments 7, 18 1.2 -1.2 -0.1 -0.1
Changes in non-controlling interests
that did not result in changes in control 0.0 0.0 -0.0
Equity at Dec 31, 2023 7.7 0.6 0.8 -4.2 263.0 267.9 267.9
Result for the financial year 18 63.7 63.7 63.7
Other comprehensive income 18 4.3 0.0 4.4 4.4
Dividend distribution 18 -27.2 -27.2 -27.2
Purchase of treasury shares 18 -0.8 -0.8 -0.8
Share-based payments 7, 18 0.8 -0.1 0.7 0.7
Transfers between items 0.1 -0.2 -0.1 -0.1
Equity at Dec 31, 2024 7.7 0.7 5.1 -4.1 299.2 308.6 308.6
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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 17, 2025. 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 the IFRS Accounting
Standards as adopted by the European Union, including International Accounting Standards (IAS) and the IFRIC
and SIC Interpretations valid on December 31, 2024. In the Finnish Accounting Act and ordinances based on
the provisions of the Act, IFRS Accounting Standards 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 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
Notes to the consolidated financial statements
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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
2024 2023 Dec 31, 2024 Dec 31, 2023
USD 1.0741 1.0797 1.0389 1.1050
CNY 7.5135 7.6429 7.5833 7.8509
JPY 151.65 151.87 163.06 156.33
GBP 0.8542 0.8703 0.8292 0.8691
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 climate change.
Vaisala's products and services support climate change adaptation by enabling customers and societies to
better prepare for changing weather conditions. Vaisala’s products also contribute to climate change mitigation
for example by enabling energy savings in customers' processes, increasing renewable energy production, and
improving transportation sustainability.
In 2024, the Science Based Targets initiative (SBTi) approved Vaisala’s near-term science-based emission
reduction targets. Vaisala commits to reduce absolute scope 1 and 2 GHG emissions 52% by 2030 from a 2021
base year. Vaisala also commits to reduce scope 3 GHG emissions from purchased goods and services, upstream
transportation, and distribution, business travel, employee commuting and use of sold products 52% per million
EUR value added within the same timeframe.
Climate change has been assessed to increase the likelihood of risks related to natural disasters, epidemics,
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 Accounting standards that are effective for the year 2024
Vaisala has adopted the following new or revised IFRS Accounting standards from January 1, 2024.
Supplier finance arrangements – Amendments to IAS 7 and IFRS 7
In 2024, the group has adopted the amendments to standards. The amendments add disclosure requirements
regarding supplier financing arrangements (SFAs). The objective of the new disclosures is to provide information
about the arrangements that enable investors and other users of the financial statements to assess the effects
of the arrangements on an entity’s liabilities, cash flows and the exposure to liquidity risk. In 2024, the group did
not have supplier finance arrangements and therefore the adoption of the amendments had no impact on the
disclosures in these financial statements.
Amendments to IAS 1: Classification of Liabilities as Current or Non-current and Non-Current Liabilities
with Covenants
In 2024, the group has adopted the amendments to standard. According to IAS 1, to classify a liability as non-
current, an entity must have the right to defer settlement of the liability for at least twelve months after the
reporting period. The amendments clarify that:
• covenants of loan arrangements which an entity must comply with only after the reporting date do
not affect the classification of a liability as current or non-current at the reporting date. However,
those covenants that an entity is required to comply with on or before the reporting date would affect
classification as current or non-current, even if the covenant is only assessed after the entity’s reporting
date.
• the classification of financial liabilities as current or non-current is unaffected by management intention or
expectations about whether an entity will exercise its right to defer settlement of a liability or settlement of
the liability between the end of the reporting period and the date the financial statements are authorised
for issue
• the settlement refers to a transfer to the counterparty that results in the extinguishment of the liability. The
transfer could be of cash or other economic resources or the entity’s own equity instruments
• terms of a liability that could, at the option of the counterparty, result in its settlement by the transfer of
the entity’s own equity instruments do not affect its classification as current or non-current if the entity
classifies the option as an equity instrument, recognising it separately from the liability as an equity
component of a compound financial instrument.
The amendments introduce additional disclosure requirements on loans which contain covenants including:
a) the carrying amount of the liability
b) information about the covenants, and
c) facts and circumstances, if any, that indicate that the entity may have difficulty complying with the
covenants.
The amendments had no impact on the amounts reported in these financial statements. In addition, Vaisala has
fulfilled the disclosure requirements related to the amendments.
Amendments to IFRS 16 Leases: Lease Liability in a Sale and Leaseback
In 2024, the group has adopted the amendments to standard. The narrow-scope amendments to requirements
for sale and leaseback transactions in IFRS 16 explain how an entity accounts for a sale and leaseback after the
date of the transaction.
The amendments specify that, in measuring the lease liability subsequent to the sale and leaseback, the
seller- lessee determines ‘lease payments’ and ‘revised lease payments’ in a way that does not result in the
seller-lessee recognising any amount of the gain or loss that relates to the right of use that it retains in the sale
and leaseback transaction.
The amendments could particularly impact sale and leaseback transactions where the lease payments
include variable payments that do not depend on an index or a rate. In 2024, the group did not have sale and
leaseback transactions and therefore the adoption of the amendments had no impact on the amounts reported
or the disclosures in these financial statements.
In addition, IFRIC has issued the following agenda decisions in 2024:
• Merger between a Parent and Its Subsidiary in Separate Financial Statements (IAS 27 Separate Financial
Statements)
• Payments Contingent on Continued Employment during Handover Periods (IFRS 3 Business Combinations)
• Climate-related Commitments (IAS 37 Provisions, Contingent Liabilities and Contingent Assets)
• Disclosure of Revenues and Expenses for Reportable Segments (IFRS 8 Operating Segments)
Except for the agenda decision related to IFRS 8 Operating segments, agenda decisions had no impact on the
amounts reported or the disclosures in these financial statements. As a result of IFRS 8 Operating segments
related agenda decision, the note to the consolidated financial statements “Reportable segments” has been
updated on the revenues and expenses disclosed on reportable segments. Comparative information has been
updated accordingly.
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Accounting principles requiring management judgment and the main uncertainty factors relating to
estimates
The preparation of financial statements in accordance with IFRS Accounting Standards 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)
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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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 Accounting Standards 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.
Reportable segments
2024
EUR million
Industrial
Measurements
Weather and
Environment
Other
operations Vaisala total
Product sales 199.4 197.9 397.3
Project sales 77.7 77.7
Service sales 27.1 21.4 48.5
Subscription sales 39.0 39.0
Lease income 2.2 2.2
Net sales 226.5 338.2 564.6
Performance obligations satisfied at a point in time 223.8 203.4 427.2
Performance obligations satisfied over time 2.7 132.5 135.2
Lease income recognized on a straight-line basis 2.2 2.2
Net sales 226.5 338.2 564.6
Gross margin, % 61.9 52.6 56.3
EBITA 48.9 41,3 0.1 90,3
% of net sales 21.6 12.2 16,0
Operating result 47.9 34.8 0.1 82.9
Share of result in associated company 0.2
Financial income and expenses -2.4
Result before taxes 80.8
Income taxes -17.0
Result for the financial year 63.7
Research and development costs 26.6 42.0 68.6
Amortization* 1.0 6.5 7.5
*
)
Amortization and impairment of intangible assets related to the business combinations and income and expenses related to (non-operative)
earn-outs of business combinations
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Reportable segments
2023
EUR million
Industrial
Measurements
Weather and
Environment
Other
operations Vaisala total
Product sales 207.4 190.3 397.7
Project sales 69.5 69.5
Service sales 19.9 19.0 38.9
Subscription sales 32.5 32.5
Lease income 1.8 1.8
Net sales 227.3 313.1 540.4
Performance obligations satisfied at a point in time 223.5 211.3 434.8
Performance obligations satisfied over time 3.8 100.2 104.0
Lease income recognized on a straight-line basis 1.7 1.7
Net sales 227.3 313.1 540.4
Gross margin, % 61.8 51.5 55.8
EBITA 46.8 27.5 0.3 74.7
% of net sales 20.6 8.8 13.8
Operating result 45.2 21.1 0.3 66.6
Share of result in associated company 0.2
Financial income and expenses -3.7
Result before taxes 63.1
Income taxes -14.2
Result for the financial year 48.9
Research and development costs 25.9 41.8 67.7
Amortization* 1.7 6.4 8.1
*
)
Amortization and impairment of intangible assets related to the business combinations and income and expenses related to (non-operative)
earn-outs of business combinations
2. GEOGRAPHICAL SEGMENTS
Vaisala’s reportable segments operate in geographical areas which are Americas, APAC and EMEA.
1)
Geographical segments
2024
EUR million
Net sales, by
destination
country
2)
Net sales,
by location
country
3)
Non-current
assets
3)
Americas 198.0 186.1 100.6
of which United States 156.3 168.8 96.4
APAC 173.2 105.3 6.3
EMEA 193.5 525.1 174.9
of which Finland 10.0 400.5 166.4
Eliminations -251.9
Total 564.6 564.6 281.8
2023
EUR million
Net sales, by
destination
country
2)
Net sales,
by location
country
3)
Non-current
assets
3)
Americas 200.4 179.8 36.0
of which United States 161.7 171.5 35.8
APAC 160.2 103.2 5.9
EMEA 179.8 468.0 131.5
of which Finland 9.1 358.8 119.7
Eliminations -210.6
Total 540.4 540.4 173.4
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
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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, services and subscription sales. 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 include among others
maintenance, calibration and repair, modernization and extended warranties. 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.
Subscription sales includes mainly data-based solutions supporting decisions in weather-dependent
operations. One subscription sales contract is one performance obligation. Revenue is recognized over time.
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 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, service and subscription sales 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, 2024 Dec 31, 2023
Trade receivables 86.2 69.9
Contract assets 31.7 24.2
Contract liabilities 27.9 30.6
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Contract assets include the balance of project, service and subscription sales related revenue recognized but not
yet invoiced.
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 and
subscription sales, 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, services and subscription sales 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 and subscription sales, 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 2024, Vaisala recognized EUR 15 (16) million revenue that was included in the contract liability balance at
the beginning of the financial year.
At the end of financial year 2024, the order book was EUR 215.0 (172.5) million, of which the performance
obligations that were unsatisfied or partially unsatisfied amounted to EUR 213.9 (171.9) 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 163.5 (127.1) million is estimated to be recognized as revenue in 2025 and EUR 50.4 (44.8)
million is estimated to be recognized later. The whole order book related to lease agreements is estimated to be
recognized as revenue in 2025.
4. OTHER OPERATING INCOME AND EXPENSES
Other operating income
EUR million 2024 2023
Indemnities 0.3 0.6
Gain on the disposal of tangible assets 0.0 0.2
Other 0.3 0.1
Total 0.6 0.9
Other operating expenses
EUR million 2024 2023
Loss on the disposal of tangible assets 0.0 -
Total 0.0 -
Other operating income and expenses, net 0.6 0.9
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5. PERSONNEL EXPENSES AND NUMBER OF EMPLOYEES
Personnel expenses
EUR million 2024 2023
Salaries 183.8 171.3
Share-based payments 2.5 3.4
Social costs 16.4 14.9
Pensions
Defined benefit plans 0.2 0.3
Defined contribution plans 22.3 21.0
Total 225.3 210.9
Personnel expenses by function
EUR million 2024 2023
Procurement and production 65.5 60.2
Sales, marketing and administration 96.2 88.0
Research and development 63.6 62.6
Total 225.3 210.9
Employees, average by business area
Persons 2024 2023
Industrial Measurements 636 606
Weather and Environment 871 870
Other operations 862 851
Total 2,368 2,327
Employees, average by geographical area
Persons 2024 2023
Americas 367 364
APAC 178 171
EMEA (excluding Finland) 280 252
Finland 1 544 1 540
Total 2,368 2,327
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. 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 an obligation under IAS 19 for the future index increases in terms of individuals covered by
the Pension Fund who have been previously employed by the company. On December 31, 2024, there were no
individuals covered by the Pension Fund employed by the company.
Defined benefit pension liability
EUR million 2024 2023
Fair value of funded obligations 3.2 3.4
Fair value of assets -2.7 -2.7
Net liability in the statement of financial position at Dec 31 0.5 0.8
Post-employment benefits totaled EUR 2.1 (2.3) million in the balance sheet as of December 31, 2024. The
amount includes the defined benefit plan recognized in the parent company amounting to EUR 0.5 (0.8) million
and pension obligations recognized in other group companies amounting to EUR 1.6 (1.5) million.
Amounts recognized in the statement of income and the statement of other comprehensive income
EUR million 2024 2023
Current service cost - -
Interest 0.0 0.0
Expense recognized in the statement of income 0.0 0.0
Net actuarial gain and loss 0,0 -0.0
Total recognized in the statement of income and the
statement of other comprehensive income
0.0 0.0
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 2024 2023
Changes in the present value of obligation
Present value of obligation Jan 1 3.4 3.9
Current service cost - -
Interest cost 0.1 0.1
Remeasurements
Actuarial gain (-) / loss (+) arising from changes in financial
assumptions 0.1 -0.2
Experience adjustment -0.2 -0.1
Benefits paid -0.3 -0.3
Present value of obligation Dec 31 3.2 3.4
Changes in the fair value of plan assets
EUR million 2024 2023
Fair value of plan assets Jan 1 2.7 2.9
Interest income on assets 0.1 0.1
Remeasurements
Net return on plan assets -0.1 -0.3
Benefits paid -0.3 -0.3
Contributions 0.2 0.3
Fair value of plan assets Dec 31 2.7 2.7
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Changes of liabilities presented in the statement of financial position
EUR million 2024 2023
Liabilities Jan 1 0.8 1.0
Expense (+) / income (-) recognized in statement of income 0.0 0.0
Total recognized in other comprehensive income -0.0 0.0
Contributions paid -0.2 -0.3
Liabilities Dec 31 0.5 0.8
Actuarial assumptions used
2024 2023
Discount rate, % 3.00 3.60
Rate of salary increase, % - 3.25
Rate of inflation, % 1.90 2.29
Annual adjustments to pensions, % 2.14 2.53
Sensitivity of the net liability changes in the principal assumptions
Assumption Change in assumption Increase in assumption Decrease in assumption
Discount rate 0.25% 2.00% decrease 2.08% increase
Pension increase rate 0.25% 12.82% increase 12.56% decrease
Assumption Increase by one year Decrease by one year
Life expectancy at birth 4.89% increase 4.66% 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. The related payment is net amount in
shares after taxes have been deducted from the amount paid in shares. Share-based incentive plan including a
net settlement feature, is treated in its entirety as an equity-settled share-based payment transaction.
Equity-settled share-based payment transactions are measured at fair value at the grant date, and those are
not remeasured. Fair value of the grant date is recognized as costs in the statement of income and as additions
to equity during the vesting period.
Other than market conditions are not taken into account when estimating the fair value at the grant date.
Instead, other than market conditions are taken into account by adjusting the expensed number of equity
instruments that are expected to vest. In terms of other than market conditions, cost is measured corresponding
to the value of share (Vaisala’s series A) closing price on the grant of the share-based incentive plan less
expected dividends. Satisfaction of these conditions are estimated at each reporting date and updated whenever
changes occur. The effect of changes is recognized in the statement of income.
Market conditions are taken into account when estimating the fair value of the equity-settled share-based
payment transaction at the grant date. Expense is recognized irrespective of whether that market condition is
satisfied, if service condition and other than market conditions are satisfied. In terms of market conditions (total
shareholder return, TSR) a model based the probability-weighted values (Monte Carlo simulation) is used to
estimate the fair value at the grant date.
As of January 1, 2024, Vaisala has amended the accounting policy related to the share-based payments and
recognizes equity related bookings in retained earnings instead of former policy recognizing those in other
reserves. This voluntary change in accounting principle based on market practice is applied retrospectively
and retained earnings and other reserves are adjusted for the earliest prior period presented. The change in
accounting policy does not have impact on consolidated statement of income or total equity.
Table below presents December 31, 2022 and 2023 comparative figures after amendments described above.
Dec 31, 2023
EUR million Earlier reported Restated
Other reserves 2.3 0.6
Retained earnings 261.3 263.0
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Share-based incentive plans
Share-based incentive plans are targeted to the Group key employees. 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. Vaisala’s Board
of Directors requires that the President and CEO and each member of the Management Group retains his/her
ownership of shares received under this plan until the value of his/her ownership in Vaisala corresponds to at
least his/her annual gross base salary.
On February 12, 2020, the Board of Directors resolved for a performance share-based incentive plan
2020–2022. On March 3, 2023 the reward corresponding to 145,022 series A shares, 83% of the maximum,
was paid to 43 key employees. 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. On March 1, 2024, the reward corresponding to 97 517 series A shares, 54% of the maximum, was
paid to 43 key employees. Closing price of Vaisala’s series A share was EUR 32.10 on the grant date of the
incentive plan.
On March 1, 2024, the reward corresponding to 2 465 series A shares was paid related to performance share-
based incentive plans 2022-2024 and 2023–2025.
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 to the vesting period. On August, 21, 2024, the reward corresponding to 1,000
series A shares and on June 3, 2024, the reward corresponding to 3,500 series A shares were paid to persons
participating in the restricted share unit plan 2022–2026 under the terms and conditions of the plan.
On February 15, 2023, the Board of Directors resolved for a performance share-based incentive plan 2023–
2025 for approximately 60 key employees. The reward will be paid in spring 2026. The maximum amount of this
plan originally corresponded to 222,100 series A shares. The expenses of this plan are accrued from May 2023 to
March 2026. Closing price of Vaisala’s series A share was EUR 38.15 on the grant date of the incentive plan.
On February 13, 2024, the Board of Directors resolved for a performance share-based incentive plan 2024–
2026 for approximately 65 key employees. The reward will be paid in spring 2027. The maximum amount of this
plan originally corresponded to 295,000 series A shares. The expenses of this plan are accrued from May 2024 to
March 2027. Closing price of Vaisala’s series A share was EUR 35.00 on the grant date of the incentive plan.
In 2024, expenses related to share-based incentive plans totaled EUR 2.5 (3.4) 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 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. 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 as it is not possible to
distinguish the research phase of an internal project that aims to create an asset from its development phase.
In addition, there is significant uncertainty in the amount and timing of future returns from the new products
before the products enter the market.
The statement of income includes research and development costs of EUR 68.6 (67.7) million in 2024.
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.
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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.
Financial income
EUR million 2024 2023
Interest income 2.2 1.7
Other financial income 0.0 0.0
Gains arising from changes in fair values of derivative financial contracts 1.1 3.2
Foreign exchange gains 6.1 3.3
Total 9.4 8.2
Financial expenses
EUR million 2024 2023
Interest expenses 2.1 2.2
Interest expenses on lease liabilities 0.6 0.4
Other financial expenses 0.2 0.5
Losses arising from changes in fair values of derivative financial contracts 4.1 2.4
Foreign exchange losses 4.8 6.3
Total 11.8 11.9
Financial income and expenses, net -2.4 -3.7
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 c) available
tax planning opportunities
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Income taxes
EUR million 2024 2023
Tax based on taxable income for the financial year 19.9 14.7
Taxes from previous financial years 0.2 -0.1
Change in deferred tax assets and liabilities -3.2 -0.4
Total 17.0 14.2
Reconciliation statement between the statement of income tax item
and taxes calculated at the tax rate of the group country of domicile
EUR million 2024 2023
Result before taxes 80.8 63.1
Taxes calculated at the Finnish tax rate 16.2 12.6
Effect of foreign subsidiaries' tax rates 1.8 2.2
Non-deductible expenses 1.1 1.0
Tax credits -0.8 -0.6
Deductible expenses not included in the accounting profit -1.0 -0.6
Adjustments for current tax of prior periods 0.2 -0.1
Other -0.4 -0.2
Total 17.0 14.2
Effective tax rate 21.1% 22.5%
Vaisala has not any carry forward tax losses for which deferred tax assets have not been recognized as of
December 31, 2024 and December 31, 2023.
Deferred taxes in the statement of financial position
EUR million 2024 2023
Deferred tax assets 12.7 7.8
Deferred tax liabilities -5.2 -2.9
Total 7.4 4.9
Gross change in deferred taxes recognized in the statement of financial position
EUR million 2024 2023
Deferred taxes Jan 1 4.9 5.2
Items recognized in the statement of income 3.1 0.4
Effect of business combinations -0.6 0.0
Translation differences 0.0 -0.2
Items recognized in the statement of comprehensive income 0.0 -0.5
Deferred taxes Dec 31 7.4 4.9
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Changes in deferred taxes during 2024
EUR million Jan 1, 2024 Reclassification
Recognized in
the statement of
income
Translation
differences
Recognized in
the statement of
comprehensive
income
Effect of business
combinations Dec 31, 2024
Deferred tax assets
Internal margin of inventories, intangible assets and property, plant and
equipment 1.3 - -0.3 - - - 0.9
Employee benefits and share-based payments 2.7 - -0.3 0.0 0.0 - 2.4
Unused tax losses 1.5 - -0.2 0.0 - - 1.3
Timing difference of amortization on intangible assets and depreciation on
property, plant and equipment 4.0 -0.3 4.8 0.0 - 3.3 11.9
Other temporary timing differences 2.5 0.0 0.3 0.0 - - 2.8
Netted against deferred tax liabilities -4.2 - -2.4 - - - -6.6
Total 7.8 -0.3 1.9 0.0 0.0 3.3 12.7
Deferred tax liabilities
Timing difference of amortization on intangible assets and depreciation on
property, plant and equipment 6.6 -0.3 1.1 0.0 - 3.9 11.4
Other 0.4 0.0 0.0 0.0 - 0.0 0.5
Netted against deferred tax assets -4.2 - -2.4 - - - -6.6
Total 2.9 -0.3 -1.2 0.0 0.0 3.9 5.2
Deferred tax assets, net 4.9 0.0 3.1 0.0 0.0 -0.6 7.4
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Changes in deferred taxes during 2023
EUR million Jan 1, 2023 Reclassification
Recognized in the
statement of income Translation differences
Recognized in the
statement of
comprehensive income Dec 31, 2023
Deferred tax assets
Internal margin of inventories, intangible assets and property, plant and
equipment 1.7 - -0.4 -0.1 - 1.3
Employee benefits and share-based payments 3.0 0.9 -0.8 0.1 -0.5 2.7
Unused tax losses 2.0 - -0.5 0.0 - 1.5
Timing difference of amortization on intangible assets and depreciation on
property, plant and equipment 2.7 0.9 0.4 0.0 - 4.0
Other temporary timing differences 4.4 -1.8 0.4 -0.4 - 2.5
Netted against deferred tax liabilities -4.2 - - - - -4.2
Total 9.5 0.0 -0.9 -0.3 -0.5 7.8
Deferred tax liabilities
Timing difference of amortization on intangible assets and depreciation on
property, plant and equipment 8.2 - 1.5 0.0 - 6.6
Other 0.3 - -0.2 0.0 - 0.4
Netted against deferred tax assets -4.2 - - - - -4.2
Total 4.3 0.0 1.3 0.0 0.0 2.9
Deferred tax assets, net 5.2 0.0 0.4 -0.3 -0.5 4.9
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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
2024 2023
Result attributable to the shareholders of the parent company, EUR million 63.7 48.9
Weighted average number of shares outstanding, 1,000 pcs 36,285 36 259
Effect of share-based incentive plans, 1,000 pcs 124 120
Weighted average diluted number of shares, 1,000 pcs 36,408 36 379
Earnings per share, EUR 1.76 1.35
Diluted earnings per share, EUR 1.75 1.35
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 2024 2023
Trade receivables* 86.7 70.2
Bank acceptance drafts 4.5
Advances paid 1.3 1.0
Value-added tax receivables 6.9 4.0
Other receivables** 2.4 2.1
Derivative financial contracts 0.1 0.4
Other prepaid expenses and accrued income** 9.0 7.8
Total 111.0 85.5
*
)
In 2024, trade receivables included EUR 0.5 (0.3) million lease receivables.
**
)
Other receivables and other prepaid expenses and accrued income include mainly grant related receivables as well as purchases and expenses
related accruals
The fair value of trade and other receivables is, in all material respects, equivalent to their carrying amounts.
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Expected credit losses of trade receivables, Dec 31, 2024
EUR million
Trade receivables,
gross amount
Credit loss
allowance
Trade receivables,
net amount
Current 63.4 0.2 63.2
Due less than 90 days 16.8 0.1 16.7
Due 91-180 days 1.5 0.3 1.1
Due over 180 days * -0.2 0.4 -0.6
Credit loss allowance other than those based on age analysis 7.4 1.1 6.3
Total 88.8 2.1 86.7
Expected credit losses of trade receivables, Dec 31, 2023
EUR million
Trade receivables,
gross amount
Credit loss
allowance
Trade receivables,
net amount
Current 49.8 0.2 49.6
Due less than 90 days 18.4 0.1 18.4
Due 91-180 days 1.0 0.1 0.8
Due over 180 days * 1.1 0.4 0.7
Credit loss allowance other than those based on age
analysis 1.1 0.4 0.7
Total 71.3 1.2 70.2
*
)
Due over 180 days contains unallocated payments and credit notes, which have not been included in calculation of the credit loss allowance.
Reconciliation of credit loss allowance of trade receivables
EUR million 2024 2023
Opening balance for credit loss allowance on Jan 1 1.2 2.0
Change in credit loss allowance recognized in profit or loss during the financial
year, net 1.1 0.2
Receivables recognized as final credit losses during the
financial year due to uncollectability -0.2 -1.0
Exchange rate differences 0.0 0.0
Total 2.1 1.2
Credit losses and related reversals arising from trade receivables recognized for the financial year amounted to
EUR -1.1 (-0.2) million.
Trade receivables by currency
EUR million 2024 2023
EUR 32.9 31.3
USD 27.5 21.7
GBP 5.3 3.5
JPY 5.4 6.0
AUD 0.6 0.9
CNY 3.9 3.4
CAD 2.6 3.0
KWD 8.3 0.0
Others 0.3 0.4
Total 86.7 70.2
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13. INVENTORIES
Accounting principles
Inventories are stated at the lower of costs incurred on procurement and conversion on standard cost basis
(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 2024 2023
Materials, supplies and finished goods 57.8 58.8
Total 57.8 58.8
The cost of inventories recognized in the statement of income as an expense corresponding to net sales was
EUR 125.1 (151.6) million.
Write-offs and excess and obsolescence allowances for slow moving and obsolete inventory recognized
during the financial year amounted to EUR 1.9 (1.1) million.
14. TRADE PAYABLES AND OTHER LIABILITIES
Accounting principles
Due to the short maturity of trade payables and other liabilities the carrying amount is considered to be the
fair value. Trade and other payables are classified as current liabilities if they are due within 12 months from the
balance sheet date or are to be settled within the normal operating business cycle. Accounting principles for
derivative financial contracts are presented in note 21, Financial assets and liabilities.
Trade payables and other liabilities
EUR million 2024 2023
Trade payables 26.9 13.8
Personnel cost accruals 48.2 39.4
Derivative financial contracts 1.5 0.4
Other accrued expenses and deferred income* 11.7 7.6
Other current liabilities* 7.4 5.4
Total 95.7 66.5
*
)
Other current liabilities and other accrued expenses and deferred income include mainly personnel expenses related liabilities, value added tax
liabilities, accrued interests as well as purchases and expenses related accruals.
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.
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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.
Non-current provisions
EUR million 2024 2023
Provisions Jan 1 0.4 0.3
Increase in provisions 0.3 0.1
Used provisions -0.1 -
Provisions Dec 31 0.6 0.4
Current provisions
EUR million 2024 2023
Provisions Jan 1 2.5 2.7
Increase in provisions 0.3 0.1
Used provisions -0.2 -0.2
Provisions Dec 31 2.7 2.5
In 2024 and 2023 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, marketing-related and customer-related intangible assets
Intangible assets identified in connection with business combinations are measured at the fair value at the
acquisition date. In business combinations consideration transferred has been allocated to technology-based,
marketing-related and customer related intangible assets. Initial measurement of technology-based, marketing-
related 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. Marketing-related intangible assets include mainly trademarks identified in
connection with business combinations.
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 5–10 years
Marketing-related intangible assets 3–10 years
Customer-related intangible assets 3–20 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 3–10 years
Other tangible assets 3–8 years
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
Marketing-related
intangible assets
Technology-based
intangible assets
Customer-related
intangible assets Other intangible assets
Advance payments and
construction in progress Total
Acquisition cost Jan 1, 2024 45.9 42.2 16.8 27.8 0.4 133.0
Translation difference 1.7 0.2 0.2 0.6 0.0 2.7
Increases 0.2 0.2 0.4
Business combinations 52.1 2.6 23.2 16.6 94.5
Decreases -14.7 -14.7
Transfers between items 0.2 -0.2 0.0
Acquisition cost Dec 31, 2024 99.7 2.6 65.6 33.6 14.0 0.4 215.9
Accumulated amortization and impairment Jan 1, 2024 29.5 14.3 26.8 70.6
Translation difference 0.1 0.0 0.5 0.6
Accumulated amortization of decreases and transfers -14.7 -14.7
Amortization for the financial year 0.0 6.3 0.7 0.5 7.6
Impairment for the financial year 0.0
Accumulated amortization and impairment Dec 31, 2024 0.0 35.9 15.1 13.0 64.0
Carrying amount Dec 31, 2024 99.7 2.6 29.7 18.6 1.0 0.4 151.9
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Intangible assets
EUR million Goodwill
Technology-based
intangible assets
Customer-related
intangible assets Other intangible assets
Advance payments and
construction in progress Total
Acquisition cost Jan 1, 2023 46.6 42.3 16.8 28.2 0.4 134.2
Translation difference -0.7 -0.2 -0.3 0.0 -1.2
Increases 0.2 0.3 0.2 0.7
Decreases -0.1 -0.6 -0.6
Transfers between items 0.1 -0.1 -0.0
Acquisition cost Dec 31, 2023 45.9 42.2 16.8 27.8 0.4 133.0
Accumulated amortization and impairment Jan 1, 2023 23.6 12.3 27.1 62.9
Translation difference -0.0 -0.2 -0.3
Accumulated amortization of decreases and transfers -0.1 -0.6 -0.6
Amortization for the financial year 6.1 2.0 0.5 8.6
Impairment for the financial year -0.0 0.0 0.0
Accumulated amortization and impairment Dec 31, 2023 29.5 14.3 26.8 70.6
Carrying amount Dec 31, 2023 45.9 12.7 2.5 1.0 0.4 62.5
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 322 (161) million. Weather and Environment business area sales are expected to grow
annually on average 7 (6)% next three years. Terminal growth rate is 2 (2)% and Weighted Average Cost of Capital
is 10.0 (12.2)%. 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, 2024 4.7 101.4 90.6 2.0 0.1 7.5 206.3
Translation difference 0.1 1.7 0.8 0.0 0.0 2.6
Increases 3.6 3.4 1.4 14.6 22.9
Business combinations 0.2 0.2
Decreases -1.2 -1.5 -0.1 -2.8
Transfers between items 4.6 4.7 0.0 -0.1 -9.2 0.0
Acquisition cost Dec 31, 2024 4.8 110.1 98.2 3.4 0.0 12.7 229.3
Accumulated depreciation and impairment Jan 1, 2024 52.0 58.8 0.5 111.4
Translation difference 0.5 0.7 0.0 1.1
Accumulated depreciation of decreases and transfers -1.2 -1.4 -2.6
Depreciation for the financial year 4.4 8.4 0.5 13.4
Impairment for the financial year 0.4 0.4
Transfers between items 0.0 0.0 0.0
Accumulated depreciation and impairment Dec 31, 2024 55.8 66.5 1.4 123.7
Carrying amount Dec 31, 2024 4.8 54.4 31.7 2.0 0.0 12.7 105.6
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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, 2023 4.8 99.2 85.0 2.0 0.1 8.7 199.7
Translation difference -0.1 -0.8 -0.7 -0.0 -1.5
Increases 2.0 6.3 0.4 4.5 13.2
Decreases 0.8 -5.2 -0.3 -4.8
Transfers between items 0.3 5.2 -5.7 -0.2
Acquisition cost Dec 31, 2023 4.7 101.4 90.6 2.0 0.1 7.5 206.3
Accumulated depreciation and impairment Jan 1, 2023 47.2 56.4 0.1 103.7
Translation difference -0.3 -0.6 0.0 -0.9
Accumulated depreciation of decreases and transfers 0.8 -5.1 0.0 -4.4
Depreciation for the financial year 4.3 8.1 12.5
Impairment for the financial year 0.0 0.1 0.3 0.4
Accumulated depreciation and impairment Dec 31, 2023 52.0 58.8 0.5 111.4
Carrying amount Dec 31, 2023 4.7 49.4 31.7 1.6 0.1 7.5 95.0
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Depreciation, amortization and impairment by function
EUR million 2024 2023
Procurement and production 6.1 5.0
Sales, marketing and administration 13.7 15.0
Research and development 1.4 1.5
Total 21.3 21.5
Depreciation, amortization and impairment by asset group 2024
EUR million Depreciation and amortization Impairment Total
Technology-based intangible assets 6.3 6.3
Customer-related intangible assets 0.7 0.7
Other intangible assets 0.5 0.5
Buildings and structures 4.4 4.4
Machinery and equipment 8.4 8.4
Leased assets 0.5 0.4 0.9
Total 20.9 0.4 21.3
Depreciation, amortization and impairment by asset group 2023
EUR million Depreciation and amortization Impairment Total
Technology-based intangible assets 6.1 6.1
Customer-related intangible assets 2.0 2.0
Other intangible assets 0.5 0.0 0.5
Buildings and structures 4.3 0.0 4.4
Machinery and equipment 8.1 0.1 8.2
Leased assets 0.3 0.3
Total 21.0 0.4 21.5
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 2024 2023
Land and waters 1.3 1.3
Buildings and structures 19.5 11.4
Machinery and equipment 0.7 0.5
Total 21.4 13.1
Additions to the right-of-use assets during the financial year 2024 were EUR 11.5 (4.5) million.
Interest-bearing lease liabilities
EUR million 2024 2023
Non-current 21.4 9.3
Current 3.1 2.8
Total 24.5 12.1
Maturity of lease liabilities is presented in note 21, Financial assets and liabilities. Cash outflow for lease contracts
not commenced on December 31, 2024 are presented in note 24. Contingent liabilities and pledges given.
Amounts recognized in the statement of income related to leases
Depreciation of right-of-use assets
EUR million 2024 2023
Buildings and structures 2.9 2.7
Machinery and equipment 0.4 0.3
Total 3.3 3.1
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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 3,626,853 are series K shares and 32,809,875 series A shares.
The shares do not have nominal value. Series A shares are listed on the Nasdaq Helsinki Ltd. 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. Vaisala Corporation’s Board of Directors decided in its meeting on May 2, 2024, that 3,089,416 Series
K shares will be converted into series A shares. This conversion was registered into the Trade Register on May 10,
2024. Vaisala Corporation’s Board of Directors decided in its meeting on October 23, 2024, that 14,823 series K
shares will be converted into series A shares. This conversion was registered into the Trade Register on November
1, 2024.
On December 31, 2024 and 2023, the fully paid and registered share capital of Vaisala Corporation amounted
to EUR 7,660,807.86.
Write-downs of right-of-use assets
EUR million 2024 2023
Buildings and structures 0.2 0.0
Total 0.2 0.0
Other items recognized in the statement of income
EUR million 2024 2023
Interest expense on lease liabilities 0.6 0.4
The total cash outflow for leases in 2024 was EUR 2.8 (3.5) million.
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.
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 2024 was EUR 2.2 (1.8) million.
At the end of the financial year 2024 the undiscounted lease payments to be received were EUR 1.4 (0.7)
million and will be received during the financial year 2025.
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Share capital and reserves
EUR million
Number of
shares 1,000 Share capital Other reserves Treasury shares Total
Dec 31, 2022 36,228 7.7 3.5 -3.3 7.9
Transfer of share-
based payments to
retained earnings -2.9 -2.9
Share-based
payments 73 1.2 1.2
Purchase of treasury
shares -50 -2.1 -2.1
Translation
differences 0.0 0.0
Dec 31, 2023 36,251 7.7 0.6 -4.2 4.1
Share-based
payments 52 0.8 0.8
Purchase of treasury
shares -19 -0.8 -0.8
Transfers between
items 0.1 0.1
Dec 31, 2024 36,285 7.7 0.7 -4.1 4.2
Own shares held by
the company 152
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 0.6 (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,
2024 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, 2022 208,487 3.3
Distribution of treasury shares to key employees -73,011 -1.2
Purchase of treasury shares 50,000 2.1
Treasury shares Dec 31, 2023 185,476 4.2
Distribution of treasury shares to key employees -52,182 -0.8
Purchase of treasury shares 18,855 0.8
Treasury shares Dec 31, 2024 152,149 4.1
In 2024, Vaisala purchased treasury shares totaling 18,855 shares. The purchase price was EUR 0.8 million. On
December 31, 2024 the company held 152,149 (185,476) series A shares representing 0.4% (0.5) of the total
number of shares and 0.1% (0.1) of the voting rights. The consideration paid for the shares held by the company
was EUR 4.1 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 2023 a dividend of EUR 0.75 per share was paid, totaling EUR 27.2 million.
The Board of Directors proposes to the Annual General Meeting to be held on March 25, 2025 that a dividend
of EUR 0.85 per share be paid for the financial year 2024, representing a total dividend of EUR 30.8 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 2024, 47% of the group’s sales was in EUR, 31% in
USD, 9% in CNY, 5% in JPY and 4% in GBP. Expenses and purchases occur mostly in EUR and USD. The group’s
policy is to hedge foreign currency positions which consists of the order book, purchase commitments, net
receivables, cash and cash equivalents and intercompany loans. Vaisala does not hedge forecasted cash flows
that are not in the order book. Vaisala does not apply hedge accounting in accordance with IFRS Accounting
Standards and changes in fair value are recognized in the statement of income. Accounting principles and
content related to derivative financial contracts are presented in the note 21. Financial assets and liabilities.
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 4.3
(-3.3) 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 on Vaisala’s result after taxes and equity would have been
EUR -3.7 (0.0) 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
2024 2023
Net position Sensitivity EUR million Net position Sensitivity
USD -32.3 +/- 3.1 USD -2.3 +/- 0.2
GBP -12.8 +/- 1.2 AUD 2.2 +/- 0.2
KWD -4.7 +/- 0.4 SEK -1.5 +/- 0.1
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 and/or cash and cash equivalents. At the end of the financial year 2024 Vaisala’s interest-
bearing liabilities and loans totaled EUR 129.5 (62.1) million, of which EUR 105.0 (50.0) million were at floating
rates. EUR 24.5 (12.1) million of interest-bearing liabilities and loans related to lease liabilities.
In addition, interest paid on cash and cash equivalents is tied to floating rate.
Vaisala had net debt of EUR 40.6 (-28.2) million. An interest rate increase of one percentage point would
have a negative impact on net result of EUR 0.2 (0.4 positive) million on the following year's net interest income
and expenses, assuming that group's floating rate liabilities and cash and cash equivalents do not change. The
calculation has taken into account liabilities with floating rates as well as cash and cash equivalents converted
into euros. Foreign exchange derivatives are not taken into account in the calculation. Interest income and
expenses are presented in the note 9. Financial income and expenses.
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, 2024 Vaisala’s cash and cash equivalents amounted to EUR 88.8 (90.3) million. In April 2024
Vaisala conducted voluntary prepayment of EUR 15.0 million regarding EUR 50.0 million unsecured term loan
initially signed on March 31, 2023. The loan is due in 2026 and has a financial covenant (gearing) tested semi-
annually. On December 31, 2024, Vaisala was in compliance with the covenant. In December 2024 Vaisala signed
a EUR 70 million unsecured term loan agreement with one of its core banks for general corporate and working
capital purposes as well as to finance the acquisition transaction in the United States. The loan was fully utilized.
The loan is due in 2027 and has a financial covenant (gearing) tested semi-annually as of 2025.
In addition, Vaisala has a domestic commercial paper program amounting to EUR 150 million. Vaisala had not
issued any domestic commercial papers on December 31, 2024, as year before at the end of 2023.
Vaisala has also a EUR 50 million committed revolving credit facility, which was undrawn on December 31,
2024, as at the end of 2023. Vaisala exercised first of the two one-year extension options of the facility in 2024
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and hence the revolving credit facility expires on October 5, 2027. The facility agreement includes a financial
covenant (gearing) tested semi-annually. On December 31, 2024, Vaisala was in compliance with the covenant.
The revolving credit facility was undrawn on December 31, 2024, as year before at the end of 2023.
Consequently, Vaisala had interest-bearing liabilities totaling EUR 129.5 (62.1) million on December 31, 2024.
Vaisala has no loans that would mature after five years or more.
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 88.8 (90.3) million
and the nominal value of derivative financial instruments to EUR 94.5 (43.7) 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 method. Additionally, trade receivables credit risk is managed by monitoring customer
liquidity and payment behavior. 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 -1.1 (-0.2) 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.
Trade receivables including expected credit losses are presented in the note 12. Trade receivables and other
receivables. Accounting principles related to trade receivables are presented in the note 21. Financial assets and
liabilities.
20. NON-CURRENT RECEIVABLES
EUR million
2024 carrying
amounts Fair values
2023 carrying
amounts Fair values
Non-current deposits 1.0 1.0 1.0 1.0
Other non-current receivables 0.2 0.2 0.2 0.2
Total 1.2 1.2 1.2 1.2
21. FINANCIAL ASSETS AND LIABILITIES
Accounting principles
Financial assets
Financial assets are classified into following categories: at amortized cost and at fair value through profit and
loss. Financial assets are measured on the basis of the entity’s business model for managing the financial
assets and the contractual cash flow characteristics of the financial assets or by applying fair value option
in connection with the original acquisition. All purchases and sales of financial assets are recognized on the
clearance date.
Financial assets measured at amortized cost are held to maturity date within a business model to collect
contractual cash flows and these cash flows consist solely of payments of principal and interest on the principal
amount outstanding. Financial assets measured at amortized cost include mainly trade receivables, prepaid
income, accrued income and other receivables.
In initial recognition of financial asset classified as at amortized cost, the asset is measured at fair value
including transaction costs that are directly attributable to the acquisition. Due to their nature current trade
receivables’ and other receivables’ carrying amount approximate to its fair value. Interest income related to these
financial assets is measured with the 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.
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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.
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 2023 or 2024.
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.
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 1.2 1.2 1.2 20
Trade receivables and forward contracts 0.1 86.7 86.7 86.7 12
Bank acceptance drafts *) 4.5 4.5 4.5 12
Cash and cash equivalents 88.8 88.8 88.8 23
Total 0.1 181.2 181.2 181.2
Financial liabilities
Interest-bearing non-current loans from
financial institutions 105.0 105.0 105.0 21
Interest-bearing non-current lease liabilities 21.4 21.4 21.4 17
Other non-current liabilities 6.7 6.7 6.7 21
Interest-bearing current lease liabilities 3.1 3.1 3.1 17
Interest-bearing current liabilities 0.0 0.0 0.0 21
Trade payables and forward contracts 1.5 26.9 26.9 26.9 14
Total 1.5 163.2 163.2 163.2
*
)
Bank acceptance drafts are used as an alternative form of payment in China. Bank acceptance drafts are issued at a discount from their par value
and are recognized at amortized cost. They can be held to maturity or redeemed prematurely at a discount.
Classification of financial assets and
liabilities as of December 31, 2024
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Classification of financial assets and liabilities as of December 31, 2023
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 1.2 1.2 1.2 20
Trade receivables and forward
contracts 0.4 70.2 70.2 70.2 12
Cash and cash equivalents 90.3 90.3 90.3 23
Total 0.4 161.8 161.8 161.8
Financial liabilities
Interest-bearing non-current loans
from financial institutions 50.0 50.0 50.0 21
Interest-bearing non-current lease
liabilities 9.3 9.3 9.3 17
Other non-current liabilities 4.2 4.2 4.2 21
Interest-bearing current lease liabilities 2.8 2.8 2.8 17
Interest-bearing current liabilities 0.0 0.0 0.0 21
Trade payables and forward contracts 0.4 13.8 13.8 13.8 14
Total 0.4 80.1 80.1 80.1
In April 2024 Vaisala conducted voluntary prepayment of EUR 15.0 million regarding EUR 50.0 million unsecured
term loan initially signed on March 31, 2023. The loan is due in 2026 and has a financial covenant (gearing) tested
semi-annually. On December 31, 2024, Vaisala was in compliance with the covenant. In December 2024 Vaisala
signed a EUR 70 million unsecured term loan agreement with one of its core banks for general corporate and
working capital purposes as well as to finance the acquisition transaction in the United States. The loan was fully
utilized. The loan is due in 2027 and has a financial covenant (gearing) tested semi-annually as of 2025.
In addition, Vaisala has a domestic commercial paper program amounting to EUR 150 million. Vaisala had not
issued any domestic commercial papers on December 31, 2024, as year before at the end of 2023. Vaisala has
also a EUR 50 million committed revolving credit facility, which was undrawn on December 31, 2024, as at the
end of 2023. Vaisala exercised first of the two one-year extension options of the facility in 2024 and hence the
revolving credit facility expires on October 5, 2027. The facility agreement includes a financial covenant (gearing)
tested semi-annually. On December 31, 2024, Vaisala was in compliance with the covenant.
On December 31, 2024, Vaisala had interest bearing liabilities totaling EUR 129.5 (62.1) million. Group has no
loans that would mature after five years or more.
Maturity of interest-bearing liabilities 2024
EUR million 2025 2026–2029 2030–2034 2035
Loans from financial institutions 105.0
Revolving credit facility
Other interest-bearing loans
Lease liabilities 4.1 11.3 9.7 7.8
Total 4.1 116.3 9.7 7.8
Maturity of interest-bearing liabilities 2023
EUR million 2024 2025–2028 2029–2033 2034
Loans from financial institutions 50.0
Revolving credit facility
Other interest-bearing loans 0.0
Lease liabilities 3.1 7.2 3.1
Total 3.2 57.2 3.1 0.0
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Derivative financial contracts
EUR million 2024 2023
Nominal value of derivative financial contracts
made to hedge against exchange rate risk
Foreign exchange forward contracts 94.5 43.7
Nominal value, total 94.5 43.7
Nominal value of derivative financial contracts in currencies
2024 2023
Currency million EUR million Currency million EUR million
USD 64.5 60.7 22.0 20.0
CNH 50.5 6.5 60.0 7.7
JPY 750.0 4.6 750.0 4.7
SEK 27.5 2.3
KWD 4.2 12.5
CAD 5.2 3.5 7.2 5.0
GBP 5.6 6.7 3.5 4.0
Total 94.5 43.7
Maturity of derivative financial contracts
EUR million 2024 2023
Less than 90 days 55.4 37.1
Over 90 days and less than 120 days - 2.0
Over 120 days and less than 180 days - 4.5
Over 180 days and less than 365 days 39.2 -
Total 94.5 43.7
Fair value of derivative financial contracts made to hedge against exchange rate risk
EUR million 2024 2023
Fair values of derivative financial contracts, assets 0.1 0.4
Fair values of derivative financial contracts, liabilities 1.5 0.4
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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, 2023 Cash flow effect
Non-cash
changes Dec 31, 2024
Loans from financial institutions 50.0 55.0 105.0
Credit facility 0.0 0.0 0.0
Lease liabilities 12.0 -2.8 15.3 24.5
Other interest-bearing liabilities 0.1 -0.0 0.0
Exchange rate differences 0.0 0.0 0.0
Total 62.1 52.1 15.3 129.5
Reconciliation of movements of interest-bearing liabilities to cash flow arising from financing
activities
EUR million Dec 31, 2022 Cash flow effect
Non-cash
changes Dec 31, 2023
Loans from financial institutions 40.0 10.0 50.0
Credit facility 0.0 0.0
Lease liabilities 10.9 -3.1 4.3 12.0
Other interest-bearing liabilities 12.6 -12.5 0.1
Exchange rate differences 0.0 0.0 0.0
Total 63.4 -5.6 4.3 62.1
Specification of other adjustments in the cash flow from operating activities
EUR million 2024 2023
Change in bad debt provision 0.9 -0.8
Change in excess and obsolete provision in inventory 1.2 -0.5
Change in provisions 0.3 -0.3
Adjustment related to share-based incentive plans 0.7 0.4
Adjustment relating to business combinations -3,3 -
Other adjustments -0.2 0.3
Total -0.4 -0.9
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 2024 2023
Cash and cash equivalents 88.8 90.3
The fair values of cash and cash equivalents are equivalent to their carrying amounts.
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24. CONTINGENT LIABILITIES AND PLEDGES GIVEN
Contingent liabilities and pledges given
EUR million 2024 2023
Bank guarantees issued for obligations 12.9 11.0
Investment commitments
On December 31, 2024, Vaisala had commitments related to intangible and tangible assets for EUR 12 (4) million.
Purchase commitments
On December 31, 2024, Vaisala had purchase commitments totaling EUR 28 (21) million. Additionally, the group
had commitments under the purchase agreements totaling a maximum of EUR 28 (31) million, if realized.
In addition, on December 31, 2024, Vaisala had committed to lease contracts, the lease period of which had
not yet commenced and related future cash outflows totaled to EUR 0.3 (13) million.
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The preliminary amounts of the assets acquired and liabilities assumed recognized and the cash flow from
the acquisition were as follows:
EUR 1,000 Fair value recognized on acquisition
Goodwill 38.5
Technology-based intangible assets 14.2
Customer related intangible assets 10.6
Marketing-relateds intangible assets 2.4
Trade receivables and other receivables 1.5
Deferred tax assets 3.3
Total assets 70.5
Trade and other payables 0.0
Contract liabilities and other deferred revenue 3.7
Total liabilities 3.8
Net assets 66.7
Purchase price paid in cash -66.7
Cash and cash equivalents acquired -
Total net cash outflow on acquisition -66.7
Consolidation
25. BUSINESS COMBINATIONS
On December 9, 2024, Vaisala acquired Maxar Intelligence’s US-based WeatherDesk business. Acquired
WeatherDesk business is related to AI-led weather forecasting and it provides rapid access to global weather
forecasts and observations. WeatherDesk serves customers focused on commodity and energy trading and
energy demand planning. Through the acquisition Vaisala expands its position in AI-led weather forecasting
and enhances its offering to the insurance, finance, and energy segment. The acquisition aligns with Vaisala’s
strategy to expand in energy transition and build recurring revenue in data.
In 2023, WeatherDesk’s (part of Maxar Technologies’ audited financial statements) net sales were USD 12.8
million and the net amount of the assets acquired and liabilities related to the acquired business totaled USD
-2.6 million on December 31, 2023.
Net sales of the acquired company between December 9, 2024, and December 31, 2024, were EUR 0.6 million
and operating result EUR 0.1 million. If the acquisition had occurred on January 1, 2024, management estimates
consolidated net sales during January–December 2024 would have been EUR 578 million and operating result
EUR 90 million excluding the impact of other business combinations during the financial year.
The preliminary consideration transferred (paid in cash) was EUR 67 million.
Goodwill was preliminarily recognized for EUR 38 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 WeatherDesk’s forecasting platform on Vaisala Xweather level as part of
Vaisala’s enhanced forecasting and analytics business
• Vaisala’s access to new customer segments and customers focusing especially on
trading and energy
The total amount of goodwill is expected to be deductible for tax purposes.
Acquisition related costs are EUR 0.7 million and those have been included in the consolidated statements of
income in 2024 as sales, marketing and administrative costs. WeatherDesk business is consolidated as part of
Vaisala Group’s statement of comprehensive income and statement of financial position as of December 9, 2024.
As the acquisition was finalized during the last quarter of the year, the assets acquired, liabilities assumed and
consideration transferred related to the business combination have been recognized provisionally.
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The preliminary amounts of the assets acquired and liabilities assumed recognized and the cash flow from
the acquisition were as follows:
EUR 1,000 Fair value recognized on acquisition
Goodwill 13.6
Technology-based intangible assets 7.1
Customer related intangible assets 5.3
Marketing-relateds intangible assets 0.2
Tangible assets 0.1
Trade receivables and other receivables 1.0
Cash and cash equivalents 2.6
Total assets 29.7
Trade and other payables 0.2
Contract liabilities and other deferred revenue 1.1
Deferred tax liabilities 3.3
Total liabilities 4.5
Net assets 25.2
Purchase price paid in cash -22.2
Cash and cash equivalents acquired 2.6
Total net cash outflow on acquisition -19.6
On October 29, 2024, Vaisala acquired all the shares in UK-based Speedwell Associates Ltd. Speedwell Climate
is specialized in climate and environmental risk transfer and provides data and software to structure, price, and
settle index-based climate risk transfer contracts.
Through the acquisition Vaisala expands its subscription-based business into insurance segment with tools
for organizations to protect themselves from financial losses caused by weather-related uncertainties. The
acquisition aligns with Vaisala’s strategy to build recurring revenue in data, creating opportunities to broaden
offerings and scale growth within existing and new customer segments.
In 2023, Speedwell group’s (audited) net sales were GBP 3.7 million and the statement of financial position
totaled GBP 3.2 million on December 31, 2023.
Net sales of the acquired group between October 29, 2024, and December 31, 2024, were EUR 0.6 million and
operating result EUR -0.2 million. If the acquisition had occurred on January 1, 2024, management estimates
consolidated net sales during January–December 2024 would have been EUR 568 million and operating result
EUR 83 million excluding the impact of other business combinations during the financial year.
The preliminary consideration transferred (paid in cash) was EUR 25 million. The preliminary consideration
transferred includes EUR 3 million contingent consideration (fair value) based on the financial development after
the consolidation date. The range of the outcome of the contingent consideration is from EUR 0 to 4.2 million.
Goodwill was preliminarily recognized for EUR 14 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 Speedwell Climate’s data asset on Vaisala Xweather level as part of
Vaisala’s data and forecast portfolio
• Vaisala’s access to new customer segments and customers focusing especially on
parametric insurance, insurance and renewable energy.
The total amount of goodwill is expected to be non-deductible for tax purposes.
Acquisition related costs are EUR 1.3 million and those have been included in the consolidated statements of
income in 2024 as sales, marketing and administrative costs. Speedwell is consolidated as part of Vaisala Group’s
statement of comprehensive income and statement of financial position as of October 29, 2024.
As the acquisition was finalized during the last quarter of the year, the assets acquired, liabilities assumed and
consideration transferred related to the business combination have been recognized provisionally.
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The preliminary amounts of the assets acquired and liabilities assumed recognized and the cash flow from
the acquisition were as follows:
EUR 1,000 Fair value recognized on acquisition
Goodwill -
Technology-based intangible assets 1.9
Customer related intangible assets 0.7
Marketing-relateds intangible assets 0.0
Tangible assets 0.0
Trade receivables and other receivables 0.7
Cash and cash equivalents 0.4
Total assets 3.8
Trade and other payables 0.3
Contract liabilities and other deferred revenue 0.0
Deferred tax liabilities 0.6
Total liabilities 1.0
Net assets 2.8
Purchase price paid in cash -1.7
Cash and cash equivalents acquired 0.4
Total net cash outflow on acquisition -1.3
There were no business combinations during financial year 2023.
No contingent consideration relating to prior acquisitions was paid in 2024 (2023: EUR 0.1 million). The group
had contingent liability related to acquisitions at the end of the financial year 2024 totaling EUR 3.9 million (on
December 31, 2023 no contingent liability). In the financial year 2023 and 2024, no contingent consideration
liability was recognized as income or expense based on the financial performance after the acquisition and
based on the estimated future performance.
On October 29, 2024, Vaisala acquired all the shares in UK-based Nevis Technology Ltd. Nevis Technology is
software, weather monitoring systems and services company specializing in providing and maintaining helideck
and environmental monitoring systems and data portals for the offshore energy industry, with offshore wind
parks as a growing customer segment. The acquisition enables Vaisala to further develop its business in the
offshore wind area with solutions for installation, crew transfer, and service operations. The acquisition streng-
thens Vaisala’s position as a weather systems and intelligence partner for the offshore wind market, in line with
the company’s strategic priority of expanding in energy transition.
In 2023, Nevis Technology’s (unaudited) net sales were GBP 1.5 million and the statement of financial position
totaled GBP 0.7 million on December 31, 2023.
Net sales of the acquired company between October 29, 2024, and December 31, 2024, were EUR 0.4 million
and operating result EUR 0.2 million. If the acquisition had occurred on January 1, 2024, management estimates
consolidated net sales during January–December 2024 would have been EUR 567 million and operating result
EUR 83 million excluding the impact of other business combinations during the financial year.
The preliminary consideration transferred (paid in cash) was EUR 3 million. The preliminary consideration
transferred includes EUR 0.9 million contingent consideration (fair value) based on the financial development
after the consolidation date. The range of the outcome of the contingent consideration is from EUR 0 to 2.6
million.
Acquisition related costs are EUR 0.2 million and those have been included in the consolidated statements of
income in 2024 as sales, marketing and administrative costs. Nevis Technology is consolidated as part of Vaisala
Group’s statement of comprehensive income and statement of financial position as of October 29, 2024.
As the acquisition was finalized during the last quarter of the year, the assets acquired, liabilities assumed and
consideration transferred related to the business combination have been recognized provisionally.
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26. SUBSIDIARIES
Name Country
Group ownership
%, Dec 31, 2024
Group ownership
%, Dec 31, 2023
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 SASU France 100 100
Name Country
Group ownership
%, Dec 31, 2024
Group ownership
%, Dec 31, 2023
Upwind SASU France 100 100
SCI Septentrion France 100 100
Vaisala Shanghai Sensors Ltd. China 100 100
Vaisala Korea Co. Ltd South-Korea 100 100
Vaisala Sweden AB Sweden 100 0
Vaisala India Private LTD India 100 0
Speedwell Settlement Services United Kingdom 100 0
weatherXchange Ltd United Kingdom 100 0
ClearWeather Ltd United Kingdom 100 0
Weather Risk Exchange Ltd United Kingdom 100 0
Speedwell Climate Ltd United Kingdom 100 0
Speedwell Associates Ltd United Kingdom 100 0
Nevis Technology Ltd United Kingdom 100 0
Speedwell Climate Corp United States 100 0
In October 29, 2024 Vaisala acquired all shares in UK-based company Speedwell Associates Ltd and its UK-based
subsidiaries Speedwell Settlement Services, weatherXchange Ltd, ClearWeather Ltd, Weather Risk Exchange
Ltd, Speedwell Climate Ltd and US-based subsidiary Speedwell Climate Corp.
In October 29, 2024 Vaisala acquired all shares in UK-based Nevis Technology Ltd.
In addition, Vaisala established subsidiary Vaisala Sweden Ab to Sweden on April 3, 2024 and Vaisala India
Private Limited to India on June 4, 2024.
On December 1, 2023 Whether or Knot LLC was merged into Vaisala Inc. K-Patents (Shanghai) Co., Ltd. was
liquidated in 2023.
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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 2024 2023
Non-current assets 3.2 2.8
Current assets 4.2 4.4
Liabilities 2.8 2.9
Net assets 4.6 4.3
Vaisala's share of net assets 1.6 1.5
Net sales 5.1 4.7
Result for the financial year 0.7 0.6
The information presented in the table is based on the latest available financial information.
Carrying amount of investments in associated company
EUR million 2024 2023
Carrying amount at Jan 1 1.5 1.4
Share of result 0.2 0.2
Dividend received -0.1 -0.1
Carrying amount at Dec 31 1.6 1.5
The carrying value of the associated company does not include goodwill.
Transactions with associated company and receivables and liabilities
EUR million 2024 2023
Sales 0.2 0.2
Receivables - 0.1
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Other notes
28. RELATED PARTY TRANSACTIONS
Related parties of Vaisala group are the parent company, subsidiaries, associated company, key management
employees of the group (members of Board of Directors, the President and CEO and Vaisala Leadership Team)
and their close members of family and their controlled entities. 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 2024 2023
Salary and bonuses of the President and CEO (payment basis)
Öistämö Kai
Salary 557 526
Short term incentives 120 288
Share-based payment 506 728
Statutory pension 113 134
Supplementary pension 85 122
Total 1,381 1,797
EUR thousand 2024 2023
Remuneration of the members of Vaisala Leadership Team
(excl. the President and CEO) (payment basis)
Salaries 2,045 1,935
Short term incentives 392 872
Share-based payment 1,371 2,527
Statutory pension 437 462
Supplementary pension 312 360
Total 4,557 6,156
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 2024 (payment basis)
EUR thousand Annual remuneration
Compensation,
Audit Committee
Compensation, People and
Sustainability Committee
Compensation,
Nomination Committee
Compensation,
Board of Director
residing outside Finland Total
Bresky Annica Member of the Board 40 4 4 5 53
Castrén Petri Member of the Board 40 6 46
Jääskeläinen Antti Member of the Board 40 1 4 45
Lundström Petra Member of the Board 0 1 1 2
Rinnevaara Jukka Member of the Board 40 5 45
Rosenberg Lotte Member of the Board 40 3 5 48
Ståhlberg Kaarina Member of the Board 40 9 1 50
Syrjänen Tuomas Member of the Board 40 5 4 49
Voipio Raimo Vice Chair of the Board 40 6 5 51
Voipio Ville Chair of the Board 55 5 5 65
Yhteensä 375 25 24 20 10 454
Remuneration of the Board of Directors 2023 (payment basis)
EUR thousand Annual remuneration
Compensation,
Audit Committee
Compensation, People and
Sustainability Committee
Compensation,
Nomination Committee
Compensation,
Strategic Planning
Committee Total
Castrén Petri Member of the Board 40 7 1 48
Jääskeläinen Antti Member of the Board 40 6 1 47
Lundström Petra Member of the Board 40 4 5 49
Rinnevaara Jukka Member of the Board 40 4 44
Ståhlberg Kaarina Member of the Board 40 9 5 1 55
Syrjänen Tuomas Member of the Board 40 5 45
Voipio Raimo Vice Chair of the Board 40 6 5 51
Voipio Ville Chair of the Board 55 5 5 1 66
Total 337 27 18 20 4 406
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29. AUDITOR’S FEES
Authorized Public Accountants PricewaterhouseCoopers Oy
EUR million 2024 2023
Audit 0.6 0.6
Tax advice 0.0 0.0
Statements 0.0 0.0
Other fees 0.2 0.1
Total 0.9 0.7
Other work than audit services given by the principal auditor PricewaterhouseCoopers Oy during the year 2024
were EUR 0.3 (0.1) million. Other work than audit services include among others assurance on sustainability
reporting (CSRD).
30. APPLICATION OF NEW AND REVISED IFRS ACCOUNTING STANDARDS AND INTERPRETATIONS IN
ISSUE BUT NOT YET EFFECTIVE
IASB published the following new or revised IFRS Accounting 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 IFRS
Accounting 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 Accounting Standards that have been issued but are not yet effective and had not yet in some cases
been adopted by the EU (marked with *):
• Amendments to IAS 21 – Lack of Exchangeability
• IFRS 18 Presentation and Disclosure in Financial Statements*
• IFRS 19 Subsidiaries without Public Accountability: Disclosures*
• Contracts Referencing Nature- dependent Electricity – Amendments to IFRS 9 and IFRS 7*
• Annual Improvements Volume 11*
• Targeted improvements to financial instruments standards – Amendments to IFRS 9 and IFRS 7*
Amendments to IAS 21 – Lack of Exchangeability
An entity is impacted by the amendments when it has a transaction or an operation in a foreign currency that is
not exchangeable into another currency at a measurement date for a specified purpose.
A currency is exchangeable when there is an ability to obtain the other currency (with a normal administrative
delay), and the transaction would take place through a market or exchange mechanism that creates enforceable
rights and obligations.
The amendments add application guidance on how to assess whether a currency is exchangeable or not.
When a currency is not exchangeable into another currency at a measurement date, an entity shall estimate
the spot exchange rate at that date. An entity’s objective in estimating the spot exchange rate is to reflect the
rate at which an orderly exchange transaction would take place at the measurement date between market
participants under prevailing economic conditions
The amendments are effective for annual reporting periods beginning on or after January 1, 2025. The
application of this amendment may have an impact on the group’s consolidated financial statements in future
periods should such transactions or operations arise.
The Board established Strategic Planning Committee at the end of the year 2023. Board established Nomination
Committee at the end of the year 2022 and the committee commenced its work in the beginning of 2023.
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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IFRS 18 Presentation and Disclosure in Financial Statements
The IASB has issued IFRS 18, the new standard on presentation and disclosure in financial statements, with a
focus on updates to the statement of profit or loss.
The key new concepts introduced in IFRS 18 relate to:
• the structure and mandatory subtotals of the statement of profit or loss;
• required disclosures in the financial statements for certain profit or loss performance measures that are
reported outside an entity’s financial statements (that is, management-defined performance measures);
and
• enhanced principles on aggregation and disaggregation which apply to the primary financial statements
and notes in general. IFRS 18 will replace IAS 1, many of the other existing principles in IAS 1 are retained
with limited changes. IFRS 18 will not impact the recognition or measurement of items in the financial
statements, but it might change what an entity reports as its ‘operating profit or loss’.
The standard is effective for annual reporting periods beginning on or after January 1, 2027 and is applied
retrospectively to comparative information.
IFRS 19 Subsidiaries without Public Accountability: Disclosures
IFRS 19 is a voluntary IFRS Accounting Standard that eligible subsidiaries can apply when preparing their
own consolidated, separate or individual financial statements. These subsidiaries will continue to apply the
recognition, measurement and presentation requirements in other IFRS Accounting Standards, but they can
replace the disclosure requirements in those standards with reduced disclosure requirements. The standard is
effective for annual reporting periods beginning on or after January 1, 2027.
Contracts Referencing Nature- dependent Electricity – Amendments to IFRS 9 and IFRS 7
Contracts for nature-dependent electricity sources, like wind or solar, are increasingly used in carbon mitigation
efforts. These often involve long-term power purchase agreements (PPAs) which may be both physical or virtual.
A key challenge is that electricity generation depends on nature, complicating accounting under some aspects of
IFRS 9.
The IASB has amended the 'own use' and hedge accounting requirements of IFRS 9, and it has added targeted
disclosure requirements to IFRS 7. These amendments apply only to contracts that expose an entity to variability
in the underlying amount of electricity because the source of its generation depends on uncontrollable natural
conditions, described as ‘contracts referencing nature-dependent electricity’.
The amendments are effective for annual reporting periods beginning on or after January 1, 2026. The
application of these amendments may have an impact on the group’s consolidated financial statements in future
periods should such transactions or operations arise.
Annual Improvements Volume 11
The 2024 amendments are to the following standards:
• IFRS 7 Financial Instruments: Disclosures and its accompanying Guidance on implementing IFRS 7;
• IFRS 9 Financial Instruments;
• IFRS 10 Consolidated Financial Statements;
• IAS 7 Statement of Cash Flows
The improvements are effective for annual reporting periods beginning on or after January 1, 2026. The
application of these improvements may have an impact on the group’s consolidated financial statements in
future periods should such transactions or operations arise.
Targeted improvements to financial instruments standards – Amendments to IFRS 9 and IFRS 7
The amendments to IFRS 9 and IFRS 7:
a) clarify the requirements for the timing of recognition and derecognition of some financial assets and
liabilities, with a new exception for some financial liabilities settled through an electronic cash transfer
system;
b) clarify and add further guidance for assessing whether a financial asset meets the solely payments of
principal and interest (SPPI) criterion;
c) add new disclosures for certain instruments with contractual terms that can change cash flows (such as
some instruments with features linked to the achievement of environment, social and governance (ESG)
targets); and
d) make updates to the disclosures for equity instruments designated at Fair Value through Other
Comprehensive Income (FVOCI).
The amendments are effective for annual reporting periods beginning on or after January 1, 2026. When an entity
first applies the amendments, it is not required to restate comparative information, and is only permitted to do
so if possible without the use of hindsight. The application of these improvements may have an impact on the
group’s consolidated financial statements in future periods should such transactions or operations arise.
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EUR Note
Jan 1–Dec 31,
2024
Jan 1–Dec 31,
2023
Net sales 2 400,420,636.92 369,376,171.60
Cost of production and procurement 4, 5 -177,878,918.64 -175,099,149.56
Gross profit 222,541,718.28 194,277,022.04
Cost of sales and marketing 4, 5 -43,699,663.40 -40,569,570.87
Cost of administration
Research and development costs 4, 5 -59,864,187.67 -53,177,534.57
Other administrative costs 4, 5 -55,621,511.60 -72,843,780.30
Other operating income and expenses 3 477,572.05 643,267.15
Operating result 63,833,927.66 28,329,403.45
Financial income 6 21,133,371.20 41,182,318.36
Financial expenses 6 -10,823,446.12 -12,318,687.27
Result before appropriations and taxes 74,143,852.74 57,193,034.54
Appropriations
Change in depreciation difference -3,894,294.66 -637,251.79
Result before taxes 70,249,558.08 56,555,782.75
Direct taxes 7 -12,009,149.06 -4,927,291.49
Result for the financial year 58,240,409.02 51,628,491.26
Parent company financial statements*
*
)
The parent company financial statements are prepared in accordance with the principles of Finnish Accounting Standards (FAS).
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Parent company balance sheet
EUR Note Dec 31, 2024 Dec 31, 2023
Assets
Non-current assets
Intangible assets 8
Goodwill 0.00 13,228.48
Intangible rights 50,795,713.98 11,530,686.79
Other intangible assets 3,244,564.30 5,236,779.94
Advance payments and intangible assets in progress 350,698.62 352,534.91
Total intangible assets 54,390,976.90 17,133,230.12
Property, plant and equipment 8
Land and waters 2,904,868.22 2,904,868.22
Buildings 39,332,935.15 41,048,425.61
Machinery and equipment 26,119,768.33 26,575,672.14
Other tangible assets 74,417.51 74,417.51
Advance payments and construction in progress 11,705,285.60 6,429,008.49
Total property, plant and equipment 80,137,274.81 77,032,391.97
Investments 8
Holdings in group undertakings 101,289,951.11 74,526,706.17
Other shares and holdings 101,000.00 101,000.00
Total investments 101,390,951.11 74,627,706.17
Total non-current assets 235,919,202.82 168,793,328.26
EUR Note Dec 31, 2024 Dec 31, 2023
Current assets
Non-current receivables
Other receivables 149,115.16 114,423.60
Total long-term receivables 149,115.16 114,423.60
Inventories
Materials, consumables and finished goods 42,230,539.66 42,979,758.91
Total inventories 42,230,539.66 42,979,758.91
Current receivables
Loan receivables from group undertakings 17 36,101,620.00 -
Trade receivables 35,701,726.78 25,789,932.16
Trade receivables from group undertakings 17 46,884,824.97 33,963,655.89
Other receivables 9 7,870,703.55 4,099,303.22
Prepaid expenses and accrued income 10 23,936,343.62 20,103,946.76
Prepaid expenses and accrued income from group undertakings 10, 17 2,254,796.63 2,156,379.27
Total current receivables 152,750,015.55 86,113,217.30
Cash and cash equivalents 46,168,053.45 66,172,382.95
Total current assets 241,297,723.82 195,379,782.76
Total assets 477,216,926.64 364,173,111.02
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Parent company balance sheet
EUR Note Dec 31, 2024 Dec 31, 2023
Shareholders' equity and liabilities
Shareholders' equity 13
Share capital 7,660,807.86 7,660,807.86
Fund of invested non-restricted equity 422,379.29 422,031.15
Retained earnings 163,272,796.77 137,839,656.64
Result for the financial year 58,240,409.02 51,628,491.26
Total shareholders' equity 229,596,392.94 197,550,986.91
Appropriations
Depreciation difference 8,352,381.67 4,458,087.01
EUR Note Dec 31, 2024 Dec 31, 2023
Liabilities
Non-current
Loans from financial institutions 15 105,000,000.00 50,000,000.00
Accrued expenses and deferred income 16 1,357,171.00 3,803,126.12
Other non-current liabilities 14 1,408,617.89 893.00
Non-current liabilities total 107,765,788.89 53,804,019.12
Current
Advances received - 1,388,253.03
Trade payables 22,068,954.03 11,310,080.70
Trade payables from group undertakings 17 12,836,024.66 1,681,655.85
Other current loans from group undertakings 17 23,644,337.84 40,914,549.80
Other current liabilities 14 8,883,174.09 1,983,002.78
Provisions 12 1,342,279.94 1,475,484.63
Accrued expenses and deferred income 16 56,084,761.14 44,883,567.51
Accrued expenses and deferred income from group undertakings 17 6,642,831.44 4,723,423.68
Current liabilities total 131,502,363.14 108,360,017.98
Total liabilities 247,620,533.70 166,622,124.11
Total shareholders' equity and liabilities 477,216,926.64 364,173,111.02
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Parent company cash flow statement
EUR thousand Note
Jan 1– Dec 31,
2024
Jan 1–Dec 31,
2023
Result for the financial period 58,240 51,628
Depreciation, amortization and impairment 5 14,719 14,316
Financial income and expenses 6 -10,310 -28,864
Gains and losses on sale of intangible assets and property,
plant and equipment 3 - -
Depreciation difference 3,894 637
Income taxes 7 12,009 4,927
Other adjustments 1,381 226
Inventories, increase (-) / decrease (+) -409 1,810
Non-interest bearing receivables, increase (-) / decrease (+) -31,763 -2,260
Non-interest bearing liabilities, increase (+) / decrease (-) 27,464 -7,328
Changes in working capital -4,708 -7,778
Financial items received 6 2,129 1,667
Financial items paid 6 -4,220 -5,518
Dividend received from business operations 6 12,524 33,555
Income taxes paid 7 -4,405 -4,630
Cash flow from operating activities 81,254 60,167
EUR thousand Note
Jan 1–Dec 31,
2024
Jan 1–Dec 31,
2023
Cash flow from investing activities
Investments in shares 8 -23,721 -
Investments in intangible assets 8 -39,483 -640
Investments in property, plant and equipment 8 -12,325 -9,167
Divestments 8 59 -
Loans granted 17 -35,532 -
Repayments on loan receivables 17 17 -
Cash flow from investing activities -110,985 -9,807
Cash flow from financing activities
Proceeds from short-term borrowings 14 80,000 107,383
Repayment of short-term borrowings 14 -42,297 -100,877
Dividend paid 13 -27,226 -26,105
Purchase of treasury shares 13 -752 -2,123
Cash flow from financing activities 9,725 -21,722
Change in cash and cash equivalents increase (+) / decrease (-) -20,005 28,638
Cash and cash equivalents at Jan 1 66,172 37,535
Change in cash and cash equivalents increase (+) / decrease (-) -20,005 28,638
Cash and cash equivalents at Dec 31 46,168 66,172
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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, services and subscription sales. 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 deliveries
contains a standard product delivery with limited amount of configuration. Revenue from the sale of product is
recognized at a point in time when the control is transferred to the customer.
Projects are integrated projects, in which observation solutions, consisting of products, services and software,
are delivered. Solutions are integrated to customer systems according to customer specifications. Revenue for
all projects is recognized over time using percentage of completion method. Progress is measured by cost-to-
cost method, comparing incurred costs and forecasted costs. Projects meet the over-time revenue recognition
criteria, mainly by creating an asset without an alternative use and Vaisala having an enforceable right to
payment for performance completed to date. The applied revenue recognition principles fulfill the Finnish
Accounting Standard requirement related to the predictability of project margin.
Services are divided into service contracts and one-off service deliverables. Services may include among
others maintenance, calibration and repair, modernization and extended warranties. 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.
Subscription sales includes mainly data-based solutions supporting decisions in weather-dependent
operations. Revenue is recognized over time.
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
relating to share-based incentive plans commenced in the financial year 2023 or earlier are recognized as
costs in the income statement and as accrued expenses in the balance sheet during the vesting period. Share-
based payments based on share-based incentive plans are paid as net amount in shares after taxes have been
deducted from the amount paid in shares.
Other than market conditions are not taken into account when estimating the fair value at the grant date.
Instead, other than market conditions are taken into account by adjusting the expensed number of equity
instruments that are expected to vest. In terms of other than market conditions, cost is measured corresponding
to the value of share (Vaisala’s series A) closing price on the grant of the share-based incentive plan less
expected dividends. Satisfaction of these conditions are estimated at each reporting date and updated whenever
changes occur. The effect of changes is recognized in the statement of income.
Market conditions are taken into account when estimating the fair value of the equity-settled share-based
payment transaction at the grant date. Expense is recognized irrespective of whether that market condition is
satisfied, if service condition and other than market conditions are satisfied. In terms of market conditions (total
shareholder return, TSR) a model based the probability-weighted values (Monte Carlo simulation) is used to
estimate the fair value at the grant date.
Share-based payments for share-based incentive plans, which relate to the transfer of shares, and that
commence in and after the financial year 2024 do not result in an event that is recognized in the income
statement or balance sheet. The shares related to the share-based incentive plans are transferred to the
participant free of charge and the right to the share’s vests irrevocably only at the end of the vesting period,
when the employment condition related to the incentive plans has been met. The value of the employment
Notes to the parent company financial statements
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condition cannot be allocated to the financial years during the vesting period, as the employee becomes
irrevocably entitled to the reward just at the end of the vesting period. The taxes paid on behalf of the participant
arising from share-based incentive plans are recognized as expenses in the financial year, when the obligation to
pay the incentive takes place.
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 employees 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. 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 3–10 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, 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 several foreign currencies, of which the most significant in 2024
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.
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2. NET SALES
Disaggregation of revenue
Net sales by market area
EUR thousand 2024 2023
Americas 124,015 116,850
of which United States 90,511 86,241
APAC 126,971 115,539
EMEA 149,434 136,987
of which Finland 9,937 8,888
Total 400,421 369,376
Net sales by business area
EUR thousand 2024 2023
Weather and Environment
Product sales 78,031 67,775
Project sales 51,854 42,129
Service sales 5,373 5,459
Subscription sales 6,694 3,181
Total 141,952 118,544
Industrial Measurements
Product sales 52,257 49,631
Service sales 3,541 2,924
Total 55,798 52,555
Net sales from subsidiaries 202,671 198,277
Total 400,421 369,376
Net sales by timing of revenue recognition
EUR thousand 2024 2023
Revenue recognized at a point in time 134,946 121,985
Revenue recognized over time 62,804 49,114
Net sales from subsidiaries 202,671 198,277
Total 400,421 369,376
Net sales from subsidiaries are mainly recognized at a point in time.
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In 2024, net sales includes EUR 12.1 million of cost recharges to group companies related to the implementation
of the enterprise resource planning system for the years 2021-2023. The enterprise resource planning system
was taken into use on January 1, 2024.
The previous year's net sales has been adjusted by the amount of internal cost recharges (EUR 10.6 million)
that were previously recorded as a reduction of costs but are included in internal revenue in 2024.
Payment terms
Payment terms vary based on geographical areas. In product, service and subscription sales 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, 2024 Dec 31, 2023
Trade receivables 46,885 59,595
Accrued revenue 16,247 14,483
Advances received 1,735 1,388
Deferred revenue 12,169 13,586
Accrued revenue includes the balance of project, service and subscription sales 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 2024, the parent company recognized EUR 7 (5) million revenue that was included in the
deferred revenue balance at the beginning of the period.
On December 31, 2024, the order book amounted to EUR 133.1 (97.8) million. Of the order book, EUR 98.4
(66.9) million is scheduled to be recognized as revenue in 2024 and EUR 34.7 (30.9) million is scheduled to be
recognized later.
3. OTHER OPERATING INCOME AND EXPENSES
Other operating income
EUR thousand 2024 2023
Indemnities and other 478 643
Total 478 643
The parent company did not have other operating expenses in 2024 and 2023.
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4. PERSONNEL EXPENSES AND NUMBER OF EMPLOYEES
Personnel expenses
EUR thousand 2024 2023
Wages and salaries 112,378 108,747
Pension costs 18,759 18,301
Other personnel costs 2,155 3,440
Total 133,292 130,488
Employees average
Persons 2024 2023
In Finland 1,544 1,540
Outside Finland 10 9
Total 1,554 1,549
Employees Dec 31
Persons 2024 2023
In Finland 1,538 1,533
Outside Finland 10 9
Total 1,548 1,542
Salary and remunerations of the President and CEO (payment basis)
EUR thousand 2024 2023
Öistämö Kai (from Oct 1, 2020 on)
Salary 557 526
Short term incentives 120 288
Share-based payment 506 728
Statutory pension 113 134
Supplementary pension 85 122
Total 1,381 1,797
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 2024 (payment basis)
EUR thousand
Annual
remuneration
Compensa-
tion, Audit
Committee
Compen-
sation,
People and
Sustainability
Committee
Compen-
sation,
Nomination
Committee
Compensa-
tion,
Board of
Director
residing
outside
Finland Total
Bresky Annica,
Member of the Board 40 4 4 5 53
Castrén Petri,
Member of the Board 40 6 46
Jääskeläinen Antti,
Member of the Board 40 1 4 45
Lundström Petra
(end of March 2024)
Member of the Board 1 1 2
Rinnevaara Jukka,
Member of the Board 40 5 45
Rosenberg Lotte,
Member of the Board 40 3 5 48
Ståhlberg Kaarina,
Member of the Board 40 9 1 50
Syrjänen Tuomas,
Member of the Board 40 5 4 49
Voipio Raimo,
Vice Chair of the Board 40 6 5 51
Voipio Ville,
Chair of the Board 55 5 5 65
Total 375 25 24 20 10 454
Remuneration of the Board of Directors 2023 (payment basis)
EUR thousand
Annual
remuneration
Compensa-
tion, Audit
Committee
Compen-
sation,
People and
Sustainability
Committee
Compen-
sation,
Nomination
Committee
Compen-
sation,
Strategic
Planning
Committee Total
Castrén Petri,
Member of the Board 40 7 1 48
Jääskeläinen Antti,
Member of the Board 40 6 1 47
Lundström Petra,
Member of the Board 40 4 5 49
Rinnevaara Jukka,
Member of the Board 40 4 44
Ståhlberg Kaarina,
Member of the Board 40 9 5 1 55
Syrjänen Tuomas,
Member of the Board 40 5 45
Voipio Raimo,
Vice Chair of the Board 40 6 5 51
Voipio Ville,
Chair of the Board 55 5 5 1 66
Total 337 27 18 20 4 406
The Board established Strategic Planning Committee at the end of the year 2023. Board established Nomination
Committee at the end of the year 2022 and the committee commenced its work in the beginning of 2023.
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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5. DEPRECIATION, AMORTIZATION AND IMPAIRMENT
EUR thousand 2024 2023
Amortization of intangible assets 5,515 5,277
Depreciation of property, plant and equipment 9,171 8,985
Impairment of intangible and tangible assets 33 54
Total 14,719 14,316
In the financial year 2024 amortization of intangible assets included amortization EUR 3.5 (3.6) million related to
merger losses included in other intangible assets.
6. FINANCIAL INCOME AND EXPENSES
EUR thousand 2024 2023
Financial income
Dividend income
From group companies 12,524 33,555
Interest income
From group companies 147 -
From others 1,982 1,667
Other financial income
From group companies - -
From others 1,111 3,158
Foreign exchange gains and losses 5,369 2,803
Total 21,133 41,182
EUR thousand 2024 2023
Financial expenses
Interest expenses
To group companies -966 -1,694
To others -1,990 -2,166
Other financial expenses
To group companies - -
To others -4,284 -2,788
Foreign exchange losses -3,583 -5,671
Total -10,823 -12,319
7. DIRECT TAXES
EUR thousand 2024 2023
Taxes from the financial year 11,969 4,931
Taxes from previous years 40 -4
Total 12,009 4,927
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8. NON-CURRENT ASSETS AND OTHER LONG-TERM INVESTMENTS
Intangible assets 2024
EUR thousand Goodwill
Intangible
rights
Other
intangible
assets
Advance
payments and
intangible assets
in progress Total
Acquisition cost Jan 1, 2024 88 33,558 20,568 353 59,327
Increases 45,842 1,557 145 42,783
Decreases -14,704 -14,704
Transfers between items 147 -147 0
Acquisition cost Dec 31, 2024 88 64,843 22,125 351 87,405
Accumulated amortization and
write-downs Jan 1, 2024 74 26,788 15,331 42,194
Accumulated amortization of
decreases and transfers -14,694 -14,694
Amortization and write-downs for
the financial year 13 1,952 3,549 5,515
Accumulated amortization and
write-downs Dec 31, 2024 88 14,047 18,880 33,015
Carrying value Dec 31, 2024 0 50,796 3,244 351 54,391
Intangible assets 2023
EUR thousand Goodwill
Intangible
rights
Other
intangible
assets
Advance
payments and
intangible assets
in progress Total
Acquisition cost Jan 1, 2023 88 33,720 20,361 340 59,269
Increases 282 207 151 640
Decreases -535 -535
Transfers between items 91 -139 -48
Acquisition cost Dec 31, 2023 88 33,558 20,568 353 59,327
Accumulated amortization and
write-downs Jan 1, 2023 55 25,693 11,694 37,442
Accumulated amortization of
decreases and transfers -535 -535
Amortization and write-downs for
the financial year 20 1,630 3,637 5,286
Accumulated amortization and
write-downs Dec 31, 2023 74 26,788 15,331 42,194
Carrying value Dec 31, 2023 13 11,531 5,236 353 17,133
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Property, plant and equipment 2024
EUR thousand Land and waters Buildings Machinery and equipment Other tangible assets
Advance payments and
construction in progress Total
Acquisition cost Jan 1, 2024 2,820 79,049 73,482 74 6,429 161,855
Increases 111 2,091 10,122 12,325
Decreases -485 -485
Transfers between items 1,154 3,692 -4,846 0
Acquisition cost Dec 31, 2024 2,820 80,314 78,780 74 11,705 173,694
Accumulated depreciation and write-downs Jan 1, 2024 43,618 46,907 90,525
Accumulated depreciation of decreases and transfers -436 -436
Depreciation for the financial year 2,980 6,190 9,171
Write-downs 0
Accumulated depreciation and write-downs Dec 31, 2024 46,599 52,660 99,259
Revaluation 84 5,618 5,702
Carrying value Dec 31, 2024 2,905 39,333 26,120 74 11,705 80,137
On December 31, 2024, the carrying amount of machinery and equipment used in production was EUR 22.9 (18.9) million.
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Property, plant and equipment 2023
EUR thousand Land and waters Buildings Machinery and equipment Other tangible assets
Advance payments and
construction in progress Total
Acquisition cost Jan 1, 2023 2,820 76,678 67,730 74 7,921 155,224
Increases 1,214 4,404 3,512 9,131
Decreases 817 -3,069 -2,252
Transfers between items 339 4,418 -5,005 -248
Acquisition cost Dec 31, 2023 2,820 79,049 73,482 74 6,429 161,855
Accumulated depreciation and write-downs Jan 1, 2023 39,760 43,987 83,747
Accumulated depreciation of decreases and transfers 817 -3,069 -2,252
Depreciation for the financial year 3,032 5,953 8,985
Write-downs 9 36 45
Accumulated depreciation and write-downs Dec 31, 2023 43,618 46,907 90,525
Revaluation 84 5,618 5,702
Carrying value Dec 31, 2023 2,905 41,048 26,576 74 6,429 77,032
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Investments 2024
EUR thousand
Holdings in group
undertakings
Other shares and
holdings Total
Acquisition cost Jan 1, 2024 74,527 101 74,628
Increases 26,763 26,763
Carrying value Dec 31, 2024 101,290 101 101,390
Investments 2023
EUR thousand
Holdings in group
undertakings
Other shares and
holdings Total
Acquisition cost Jan 1, 2023 74,651 101 74,752
Decreases -124 -124
Carrying value Dec 31, 2023 74,527 101 74,628
9. OTHER RECEIVABLES
EUR thousand 2024 2023
Advances paid 871 327
Value added tax receivables 4,780 2,132
Grants 2,219 1,621
Other - 20
Total 7,870 4,099
10. DEFERRED ASSETS
EUR thousand 2024 2023
Tax receivables 318 1,112
Deferred revenue 16,247 14,362
Derivative financial contracts 105 417
Other deferred assets 7,266 6,369
Total 23,936 22,260
Derivative financial contracts
EUR million 2024 2023
Nominal value of derivative financial contracts made to hedge against exchange
rate risk
Foreign exchange forward contracts 94.5 43.7
Nominal value, total 94.5 43.7
Nominal value of
derivative financial
contracts in currencies
2024 2023
Currency million EUR million Currency million EUR million
USD 64.5 60.7 22.0 20.0
CNH 50.5 6.5 60.0 7.7
JPY 750.0 4.6 750.0 4.7
SEK - - 27.5 2.3
KWD 4.2 12.5 - -
CAD 5.2 3.5 7.2 5.0
GBP 5.6 6.7 3.5 4.0
Total 94.5 43.7
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Maturity of derivative financial contracts
EUR million 2024 2023
Less than 90 days 55.4 37.1
Over 90 days and less than 120 days - 2.0
Over 120 days and less than 180 days - 4.5
Over 180 days and less than 365 days 39.2 -
Total 94.5 43.7
Fair value of derivative financial contracts made to hedge against exchange rate risk
EUR million 2024 2023
Fair values of derivative financial contracts, assets 0.1 0.4
Fair values of derivative financial contracts, liabilities 1.5 0.4
11. DEFERRED TAX ASSETS AND LIABILITIES
Deferred tax assets
EUR thousand 2024 2023
Share-based payments 780 943
Provisions 529 295
Total 1,309 1,238
Deferred tax assets and liabilities have not been recognized in the parent company’s balance sheet. Deferred tax
liabilities arising from revaluation and depreciation difference have not been taken into account. If realized, 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
No non-current provisions at the end of fiscal years 2023 and 2024.
Current provisions
EUR thousand 2024 2023
Provisions Jan 1 1,475 1,631
Increases 215 1,475
Decreases -349 -1,631
Provisions Dec 31 1,342 1,475
The provisions in the financial years 2024 and 2023 include mainly warranty provision 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 3,626,853 are series K shares and 32,809,875 series A shares. The shares do not
have nominal value. Series A shares are listed on the Nasdaq Helsinki Ltd. 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, 2024 and 2023, 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 2024 2023
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 1 189,468 165,122
Dividend paid -27,226 -26,137
Distribution of treasury shares 830 1,191
Gain/Loss on transfer of shares 953 -213
Purchase of treasury shares -752 -2,123
Retained earnings Dec 31 163,272 137,840
Result for the financial year 58,240 51,628
Total equity 229,596 197,551
Distributable funds
EUR thousand 2024 2023
Retained earnings 163,272 137,840
Result for the financial year 58,240 51,628
Fund of invested non-restricted equity 422 422
Total 221,935 189,890
From the financial year 2023 a dividend of EUR 0.75 per share was paid, a total of EUR 27.2 million.
Vaisala Corporation’s Board of Directors decided in its meeting on May 2, 2024, that 3,089,416 Series K shares
will be converted into series A shares. This conversion was registered into the Trade Register on May 10, 2024.
Vaisala Corporation’s Board of Directors decided in its meeting on October 23, 2024, that 14,823 series K
shares will be converted into series A shares. This conversion was registered into the Trade Register on November
1, 2024.
The parent company purchased treasury shares totaling 18,855 shares in 2024. The purchase price was EUR
0.75 million. After purchase, the number of treasury shares owned by the company totaled to 152,149 shares.
14. OTHER NON-CURRENT AND CURRENT LIABILITIES
Parent company had on December 31, 2024 long-term liabilities EUR 105.0 (50.0) 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, 2024, other current liabilities were EUR 8.9 (2.0) million. On December 31, 2024, other current
liabilities included contingent consideration liability EUR 3.0 million relating to acquisitions.
15. LOANS FROM FINANCIAL INSTITUTIONS
In April 2024 the parent company conducted voluntary prepayment of EUR 15.0 million regarding EUR 50.0
million unsecured term loan initially signed on March 31, 2023. The loan is due in 2026 and has a financial
covenant (gearing) tested semi-annually. On December 31, 2024, Vaisala was in compliance with the covenant.
In December 2024 the parent company signed a EUR 70 million unsecured term loan agreement with one of its
core banks for general corporate and working capital purposes as well as to finance the acquisition transaction
in the United States. The loan was fully utilized. The loan has a financial covenant (gearing) tested semi-annually
as of 2025.
In addition, the parent company has a domestic commercial paper program amounting to EUR 150 million.
The company had not issued any domestic commercial papers on December 31, 2024, as year before at the end
of 2023 .
The parent company has also a EUR 50 million committed revolving credit facility, which was undrawn on
December 31, 2024, as at the end of 2023. The parent company exercised first of the two one-year extension
options of the facility and hence the revolving credit facility expires on October 5, 2027. The facility agreement
includes a financial covenant (gearing) tested semi-annually. On December 31, 2024, the company was in
compliance with the covenant. The revolving credit facility was undrawn on December 31, 2024, as year before at
the end of 2023.
Consequently, the company had non-current interest-bearing liabilities totaling EUR 105.0 (50.0) million on
December 31, 2024. The company has no loans that would mature after five years or more.
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16. NON-CURRENT AND CURRENT ACCRUED EXPENSES AND DEFERRED INCOME
Short-term accrued expenses and deferred income
EUR thousand 2024 2023
Personnel expense accruals 32,408 28,516
Deferred revenue 12,169 13,586
Derivative financial contracts 1,513 380
Direct tax accruals 6,891 25
Other accrued expenses and deferred income 3,104 7,099
Total 56.085 49,607
Notes related to derivative financial contracts are presented in the note to the financial statements 10, Deferred
assets.
Non-current accrued expenses and deferred income include personnel expense accruals totaling to EUR 1.4
(2.4) million and deferred revenue EUR 1.4 (1.4) million.
17. RECEIVABLES AND LIABILITIES FROM OTHER COMPANIES IN VAISALA GROUP
EUR thousand 2024 2023
Reveivables
Loans receivables 36,102 -
Trade receivables 46,885 33,967
Prepaid expenses and accrued income 2,255 2,155
Total receivables 85,241 36,122
Liabilities
Current loans 23,644 40,882
Trade payables 12,836 1,682
Accrued expenses and deferred income 6,643 4,723
Total liabilities 43,123 47,287
18. CONTINGENT LIABILITIES AND PLEDGES GIVEN
Contingent liabilities and pledges gives
EUR thousand 2024 2023
For own debt or liability
Bank guarantees issued for obligations 11,865 10,297
For group companies
Guarantees 905 522
Leasing commitments
Payable during the following financial year 373 364
Payable later 459 751
Total leasing liabilities 832 1,115
Total contingent liabilities and pledges given 13,602 11,934
Investment commitments
On December 31, 2024, the parent company had commitments related to intangible and tangible assets for EUR
12 (3) million.
Purchase commitments
On December 31, 2024, the parent company had purchase commitments totaling to EUR 31 (16) million.
19. AUDITOR’S FEES
EUR thousand 2024 2023
Audit 421 444
Statements 13 8
Tax advice 8 -
Other fees 161 105
Total 603 557
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The financial statements of the parent company, Vaisala Corporation, prepared according to the Finnish
Accounting Standards and consolidated financial statements prepared according to IFRS Accounting Standards
give true and fair view of the parent company’s as well as companies’ included in its consolidated financial
statements assets, liabilities, financial position and profit or loss.
The Board of Directors’ Report includes an explanation that give true view on the development of the
operations and profitability of the parent company and companies included in its consolidated financial
statements, as well as a description of the most significant risks and uncertainties and other conditions of the
parent company.
Sustainability statement included in the Board of Directors’ Report has been prepared in accordance with the
reporting standards in the Accounting Act’s chapter 7 and in accordance with article 8 in the taxonomy regulation.
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Signing of the Board of Directors’
report and financial statements
Vantaa, February 17, 2025
Annica Bresky Petri Castrén Antti Jääskeläinen Jukka Rinnevaara
Lotte Rosenberg 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
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 IFRS Accounting Standards 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 to the Audit Committee.
What we have audited
We have audited the financial statements of Vaisala Oyj (business identity
code 0124416-2) for the year ended 31 December 2024. The financial
statements comprise:
• the consolidated balance sheet, income statement, statement of
comprehensive income, statement of changes in equity, statement
of cash flows and notes, which include material accounting policy
information and other explanatory information
• the parent company’s balance sheet, income statement, cash flow
statement and notes.
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 believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.
Independence
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.
To the best of our knowledge and belief, the non-audit services that
we have provided to the parent company and group companies are in
accordance with the applicable law and regulations in Finland and we have
not provided non-audit services that are prohibited under Article 5(1) of
Regulation (EU) No 537/2014. The non-audit services that we have provided
are disclosed in note 29 to the Financial Statements.
Our Audit Approach
Overview
• We have applied an overall group materiality of
€ 4 million which represents approximately 5% of
profit before taxes.
• The group audit scope included all significant
group companies in Europe, Asia and North
America, covering the vast majority of net sales,
assets and liabilities.
• Revenue recognition of product and project sales
• Inventory valuation
• Implementation of the new ERP- system
As part of designing our audit, we determined materiality and assessed the
risks of material misstatement in the financial statements. In particular, we
considered where management made subjective judgements; for example,
in respect of significant accounting estimates that involved making
assumptions and considering future events that are inherently uncertain.
Materiality
The scope of our audit was influenced by our application of materiality. An
audit is designed to obtain reasonable assurance whether the financial
statements are free from material misstatement. Misstatements may
arise due to fraud or error. They 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.
Based on our professional judgement, we determined certain
quantitative thresholds for materiality, including the overall group
materiality for the consolidated financial statements as set out in the
table below. These, together with qualitative considerations, helped us
to determine the scope of our audit and the nature, timing and extent of
our audit procedures and to evaluate the effect of misstatements on the
financial statements as a whole.
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Overall group materiality € 4 million
How we determined it The group's materiality is defined as approximately
5% of Vaisala Group's profit before taxes.
Rationale for the
materiality benchmark
applied
We chose profit before tax as the benchmark
for determining materiality because, in our
view, it is the most commonly measured by
users of the financial statements to assess the
performance of the Group. In addition, profit
before tax is a generally accepted benchmark. We
choose a percentage of approximately 5% as the
applicable percentage, which is within the range of
acceptable quantitative materiality thresholds in
auditing standards
How we tailored our group audit scope
We have determined our group audit scope to obtain sufficient audit
coverage of Vaisala Group’s consolidated financial statements. We
tailored the scope of our audit, taking into account the structure of the
group, the accounting processes and controls, and the industry in which
the group operates.
Audits were performed in group companies that we considered
significant due to risk or size. These audits covered the vast majority
of net sales, assets and liabilities. We performed mainly analytical
procedures in the remaining group companies.
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.
As in all of our audits, we also addressed the risk of management
override of internal controls, including among other matters
consideration of whether there was evidence of bias that represented a
risk of material misstatement due to fraud.
Key audit matter How our audit addressed the key audit matter
Revenue recognition of product and project sales
Note 1, 2 and 3 in the consolidated financial statements.
Note 1 and 2 in the financial statements of the parent company
Vaisala Group’s net sales amounted to € 564,6 million and the parent company’s
to € 400,4 million. Net sales consist of products, project, service and subscription
sales as presented in note 1.
Revenue from sale of products is recognized at a point in time when the control is
transferred to the customer. As product sales comprise a high volume of distinct
product deliveries under various sales contracts and terms, there is a risk that
revenue is recognised in the incorrect period.
Revenue from 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 requires management judgment
related to forecasted project revenues and costs throughout the project delivery.
Revenue recognition is considered a key audit matter in the audit of the
consolidated financial statements and the financial statements of the parent
company due to the management judgment related to revenue recognition of
product and project sales and due to the significance of net sales to the financial
statements.
Our audit procedures included, for example, the following:
• We obtained an understanding of different revenue streams and related
contractual terms used
• We assessed the accounting principles over revenue recognition
• We obtained an understanding of the revenue recognition process and
internal controls that the company uses to monitor the completeness,
accuracy and correct timing of revenue recognition
• We tested on a sample basis the revenue recognition of product sales
whether the revenue is recognized in the correct period
• We tested, on a sample basis, project accounting including estimated
project revenues, estimated project costs, incurred costs and percentage
of completion
• We reviewed the project cost estimates prepared by the management and
compared actual project outcomes to their related estimates
• We evaluated the presentation and disclosures in the financial statements.
Inventory valuation
Note 13 in the consolidated financial statements.
Note 1 in the financial statements of the parent company
Inventory in Vaisala Group’s balance sheet amounted to € 58.8 million and
in parent company to 42,2 million. In consolidated financial statement, the
Inventories are stated at the lower of standard cost or net realizable value and
in parent company financial statement the inventories are stated at the lower
of standard cost or the probable replacement cost or selling price of stocks.
Allowance for inventory is recognized for possible excess, obsolescence and
decrease in net realizable value below inventory cost.
Management estimates and judgment are required in determining the value of
the allowance for excess and obsolete inventory.
Inventory valuation is considered a key audit matter in the audit of the
consolidated financial statements and the financial statements of the parent
company due to the management judgment related to inventory valuation and
due to the significance of inventory to the financial statements
Our audit procedures included, for example, the following:
• We obtained an understanding of accounting processes and practices
related to inventory valuation
• We assessed the accounting principles over inventory valuation
• We tested internal controls related to inventory valuation
• We tested on a sample basis that inventories have been valued in
accordance with the accounting policies of the Group and the parent
company.
• We evaluated the allowance for excess and obsolete inventory and tested
that the allowance is accounted for in accordance with the company’s
accounting principles
• We reviewed the estimates of demand prepared by the management in
determining the value of the allowance for excess and obsolete inventory
• We evaluated the presentation and disclosures in the financial statements
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Responsibilities of the Board of Directors and the Managing Director
for the Financial Statements
The Board of Directors and the Managing Director are responsible for the
preparation of consolidated financial statements that give a true and fair
view in accordance with IFRS Accounting Standards 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 the Managing Director 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 the
Managing Director are responsible for assessing the parent company’s
and the group’s ability to continue as a 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 to cease operations, or there is no realistic
alternative but to do so.
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 the
Managing Director’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.
• Plan and perform the group audit to obtain sufficient appropriate audit
evidence regarding the financial information of the entities or business
units within the group as a basis for forming an opinion on the group
financial statements. We are responsible for the direction, supervision
and review of the audit work performed for purposes 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.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about 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 the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of these
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,
Key audit matter How our audit addressed the key audit matter
Implementation of the new Enterprise Resource Planning (ERP) system
Vaisala Group has implemented a new ERP system at the beginning of the
financial year 2024. The implementation of the new system involves inherent risks
related to the correctness and continuity of the transferred financial information.
The information produced by the ERP system has a wide-ranging impact on the
accuracy of financial information. As a result, we have identified the complete and
accurate migration of financial information from the legacy system environment
to the new ERP system as a key audit matter in the audit of the consolidated
financial statements and the financial statements of the parent company.
Our audit procedures included, for example, the following:
• We obtained an understanding of the ERP system implementation process
and related management controls
• We assessed and tested project management and data migration controls
related to the implementation
• We tested the transfers of balance sheet and profit and loss data from the
old system to the new system.
• We responded to the risks arising from the system environment by testing
the system's access, change management and business process controls.
There are no significant risks of material misstatement referred to in Article 10(2c) of Regulation (EU) No 537/2014 with respect to the consolidated financial statements or
the parent company financial statements
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We also provide those charged with governance with a statement
that we have complied with relevant ethical requirements regarding
independence, and to 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.
Other Reporting Requirements
Appointment
We were first appointed as auditors by the annual general meeting on 28
March 2023. Our appointment represents a total period of uninterrupted
engagement of 2 years. Authorised Public Accountant Ylva Eriksson has
acted as the principal auditor appointed by PricewaterhouseCoopers Oy
starting from the Annual General Meeting on 26 March 2024.
Other Information
The Board of Directors and the Managing Director are responsible for the
other information. The other information comprises the report of the Board
of Directors and the information included in the Governance and Financial
Review but does not include the financial statements or 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 identified above 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 report of
the Board of Directors, our responsibility also includes considering whether
the report of the Board of Directors has been prepared in compliance with
the applicable provisions, excluding the sustainability report information
on which there are provisions in Chapter 7 of the Accounting Act and in the
sustainability reporting standards.
In our opinion, the information in the report of the Board of Directors
is consistent with the information in the financial statements and the
report of the Board of Directors has been prepared in compliance with the
applicable provisions. Our opinion does not cover the sustainability report
information on which there are provisions in Chapter 7 of the Accounting
Act and in the sustainability reporting standards.
If, based on the work we have performed on the other information that
we obtained prior to the date of this auditor’s report, we conclude that
there is a material misstatement of this 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 Companies Act. We support that the members of
the Board of Directors and the Managing Director of the parent company
should be discharged from liability for the financial period audited by us.
Helsinki 17 February 2025
PricewaterhouseCoopers Oy
Authorised Public Accountants
Ylva Eriksson
Authorised Public Accountant (KHT)
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Corporate Governance Statement
Assurance Report on the Sustainability Report
(Translation of the Finnish Original)
To the Annual General Meeting of Vaisala Corporation
We have performed a limited assurance engagement on the group
sustainability report of Vaisala Corporation (business identity code
0124416-2) that is referred to in Chapter 7 of the Accounting Act and that
is included in the report of the Board of Directors for the reporting period
1.1.–31.12.2024.
Opinion
Based on the procedures we have performed and the evidence we have
obtained, nothing has come to our attention that causes us to believe that
the group sustainability report does not comply, in all material respects,
with
1) the requirements laid down in Chapter 7 of the Accounting Act and
the sustainability reporting standards (ESRS);
2) the requirements laid down in Article 8 of the Regulation (EU)
2020/852 of the European Parliament and of the Council on the
establishment of a framework to facilitate sustainable investment,
and amending Regulation (EU) 2019/2088 (EU Taxonomy).
Point 1 above also contains the process in which Vaisala Corporation
has identified the information for reporting in accordance with the
sustainability reporting standards (double materiality assessment).
Our opinion does not cover the tagging of the group sustainability
report in accordance with Chapter 7, Section 22, of the Accounting Act,
because sustainability reporting companies have not had the possibility
to comply with that requirement in the absence of the ESEF regulation or
other European Union legislation.
Basis for Opinion
We performed the assurance of the group sustainability report as a limited
assurance engagement in compliance with good assurance practice in
Finland and with the International Standard on Assurance Engagements
(ISAE) 3000 (Revised) Assurance Engagements Other than Audits or
Reviews of Historical Financial Information.
Our responsibilities under this standard are further described in the
Responsibilities of the Authorised Group Sustainability Auditor section of
our report.
We believe that the evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.
Other Matter
We draw attention to the fact that the group sustainability report of
Vaisala Corporation that is referred to in Chapter 7 of the Accounting
Act has been prepared and assurance has been provided for it for the
first time for the reporting period 1.1.–31.12.2024. Our opinion does not
cover the comparative information that has been presented in the group
sustainability report. Our opinion is not modified in respect of this matter.
Authorised Group Sustainability Auditor's Independence
and Quality Management
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 engagement, and we have fulfilled our other ethical
responsibilities in accordance with these requirements.
Our firm applies International Standard on Quality Management ISQM
1, which requires the firm to design, implement and operate a system
of quality management including policies or procedures regarding
compliance with ethical requirements, professional standards and
applicable legal and regulatory requirements.
Responsibilities of the Board of Directors and the Managing Director
The Board of Directors and the Managing Director of Vaisala Corporation
are responsible for:
• the group sustainability report and for its preparation and presentation
in accordance with the provisions of Chapter 7 of the Accounting
Act, including the process that has been defined in the sustainability
reporting standards and in which the information for reporting in
accordance with the sustainability reporting standards has been
identified
• the compliance of the group sustainability report with the requirements
laid down in Article 8 of the Regulation (EU) 2020/852 of the European
Parliament and of the Council on the establishment of a framework
to facilitate sustainable investment, and amending Regulation (EU)
2019/2088;
• such internal control as the Board of Directors and the Managing
Director determines is necessary to enable the preparation of a group
sustainability report that is free from material misstatement, whether
due to fraud or error.
Inherent Limitations in the Preparation of a Sustainability Report
In reporting forward-looking information in accordance with ESRS,
management of the Company is required to prepare the forward-looking
information on the basis of assumptions that have been disclosed in the
sustainability report about events that may occur in the future and possible
164
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Corporate Governance Statement
future actions by the Group. Actual outcomes are likely to be different since
anticipated events frequently do not occur as expected.
Responsibilities of the Authorised Group Sustainability Auditor
Our responsibility is to perform an assurance engagement to obtain limited
assurance about whether the group sustainability report is free from
material misstatement, whether due to fraud or error, and to issue a limited
assurance report that includes our opinion. Misstatements can arise
from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the decisions of
users taken on the basis of the group sustainability report.
Compliance with the International Standard on Assurance Engagements
(ISAE) 3000 (Revised) requires that we exercise professional judgment and
maintain professional skepticism throughout the engagement. We also:
• Identify and assess the risks of material misstatement of the group
sustainability report, whether due to fraud or error, and obtain an
understanding of internal control relevant to the engagement in order to
design assurance 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.
• Design and perform assurance procedures responsive to those risks to
obtain 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.
Description of the Procedures That Have Been Performed
The procedures performed in a limited assurance engagement vary in
nature and timing from, and are less in extent than for, a reasonable
assurance engagement. The nature, timing and extent of assurance
procedures selected depend on professional judgment, including the
assessment of risks of material misstatement, whether due to fraud or
error. Consequently, the level of assurance obtained in a limited assurance
engagement is substantially lower than the assurance that would have
been obtained had a reasonable assurance engagement been performed.
Our procedures included for example the following:
• We interviewed the company's management and the individuals
responsible for collecting and reporting the information contained in
the group sustainability report at the group level and in subsidiaries, as
well as at different levels and business areas of the organization to gain
an understanding of the sustainability reporting process and the related
internal controls and information systems.
• We familiarised ourselves with the background documentation and
records prepared by the company where applicable, and assessed
whether they support the information contained in the group
sustainability report.
• We performed site visits at the company’s head office in Finland and at
one site in France.
• We assessed the company's double materiality assessment process in
relation to the requirements of the ESRS standards, as well as whether
the information provided about the assessment process complies with
the ESRS standards.
• We assessed whether the sustainability information contained in the
group sustainability report complies with the ESRS standards.
• Regarding the EU taxonomy information, we gained an understanding of
the process by which the company has identified the group's taxonomy-
eligible and taxonomy-aligned economic activities, and we assessed the
compliance of the information provided with the regulations.
Helsinki 17 February 2025
PricewaterhouseCoopers Oy
Authorised Sustainability Auditors
Ylva Eriksson
Authorised Sustainability Auditor
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Sustainability statement
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Contacts
Heli Lindfors
Chief Financial Officer
heli.lindfors@vaisala.com
Paula Liimatta
Business Controller and Head of Investor Relations
paula.liimatta@vaisala.com
Katriina Vainio
Group General Counsel
katriina.vainio@vaisala.com
Marjo Hietapuro
Sustainability Manager
marjo.hietapuro@vaisala.com
Vaisala Corporation
Vanha Nurmijärventie 21
01670 Vantaa, Finland
vaisala.com
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Photos
Pages 3, 70, and 81: Ääri/ Kimmo Syväri;
pages 8, 39, and 57: Shutterstock; pages 12 and 14: Tomi Parkkonen
page 17 Stocksy, page 38 StockSnap
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Independent Auditor’s Reasonable
Assurance Report on Vaisala Oyj’s
ESEF Financial Statements (Translation of the Finnish Original)
To the Management of Vaisala Oyj
We have been engaged by the Management of Vaisala Oyj (business
identity code 0124416-2) (hereinafter also “the Company”) to perform a
reasonable assurance engagement on the Company’s consolidated IFRS
financial statements for the financial year 1.1.- 31.12.2024 in European
Single Electronic Format (“ESEF financial statements”).
Management’s Responsibility for the ESEF Financial Statements
The Management of Vaisala Oyj is responsible for preparing the ESEF
financial statements so that they comply with the requirements as
specified in the Commission Delegated Regulation (EU) 2019/815 of 17
December 2018 (“ESEF requirements”). This responsibility includes the
design, implementation and maintenance of internal control relevant to
the preparation of ESEF financial statements that are free from material
noncompliance with the ESEF requirements, whether due to fraud or error.
Our Independence and Quality Management
We have complied with the independence and other ethical requirements
of the International Code of Ethics for Professional Accountants (including
International Independence Standards) issued by the International Ethics
Standards Board for Accountants (IESBA Code), which is founded on
fundamental principles of integrity, objectivity, professional competence
and due care, confidentiality and professional behaviour.
Our firm applies International Standard on Quality Management 1,
which requires the firm to design, implement and operate a system
of quality management including policies or procedures regarding
compliance with ethical requirements, professional standards and
applicable legal and regulatory requirements.
Our Responsibility
Our responsibility is to express an opinion on the ESEF financial
statements based on the procedures we have performed and the evidence
we have obtained.
We conducted our reasonable assurance engagement in accordance
with the International Standard on Assurance Engagements (ISAE) 3000
(Revised) Assurance Engagements Other than Audits or Reviews of
Historical Financial Information. That standard requires that we plan and
perform this engagement to obtain reasonable assurance about whether
the ESEF financial statements are free from material noncompliance with
the ESEF requirements.
A reasonable assurance engagement in accordance with ISAE 3000
(Revised) involves performing procedures to obtain evidence about the
ESEF financial statements compliance with the ESEF requirements. The
procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material noncompliance of the ESEF financial
statements with the ESEF requirements, whether due to fraud or error. In
making those risk assessments, we considered internal control relevant to
the Company’s preparation of the ESEF financial statements.
We believe that the evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.
Opinion
In our opinion, Vaisala Oyj’s ESEF financial statements for the financial
year ended 31st December 2024 comply, in all material respects, with the
minimum requirements as set out in the ESEF requirements.
Our reasonable assurance report has been prepared in accordance with
the terms of our engagement. We do not accept, or assume responsibility
to anyone else, except for Vaisala Oyj for our work, for this report, or for the
opinion that we have formed.
Helsinki 17th February 2025
PricewaterhouseCoopers Oy
Authorised Public Accountants
Ylva Eriksson
Authorised Public Accountant (KHT)
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