CFO focus
Automated workflows and integrated IT systems are key tools for Vaillant’s finance teams.
that is an opportunity, not just a risk, as we move to renewable energy.” On climate risk, another global threat affecting every industry, Vaillant is not only looking at risk mitigation strategies, but also working hard to be a part of the solution.
This is reflected in its products, its operations and the financing of the company. As an example, Borchers and his colleagues see green finance as a must-have, not a luxury.
“You must not be afraid of change. You must grasp it and make the most of it.”
2.5m Vaillant 44
The number of central heating units sold by the company in 2021.
The corporate ethos – taking care of a better climate – was introduced back in 2017. Even back then, the company had already been committed to its sustainability programme for six years. “It was very clear to us, when looking at financing, that it had to be ESG-linked,” says Borchers. “For example, at the end of 2020, we signed a €300m syndicated loan with the interest rate tied to four ESG criteria. Green finance like this is a prerequisite, as investors and banks are asking for it.” “We need green financing to have access to the whole finance pool,” he continues. “Also, many more green finance instruments are available. Previously, we did not need them, as we were cash-rich, but in the future we will see many more ESG-linked instruments, and we are having good discussions with banks on criteria and KPIs.” In keeping with its forward-looking approach to business, and its
willingness to change, Vaillant has also invested in modernising how its finance function operates. Automation and digitalisation are key factors in ensuring that the finance team has the tools to deliver on the organisation’s strategic goals. “Without digitalisation, finance today would not work anymore,” argues Borchers. “We have a shared service centre for accounting and reporting, and a payment factory for global payments. These would not work without automated workflows and integrated IT systems.”
The finance team is currently switching its reporting processes to SAP Analytics Cloud, and has set up automated micropayments for the company’s service department to enable it to handle very small payments. Modernising the finance function, enabling it to be a more effective partner for the rest of the business, and supporting it in its role as the economic conscience of the company, are all essential for the company to swim faster than the market currents and, above all, embrace change as the world moves towards electric heating. “We are lucky to be in an industry that is growing,” summarises Borchers. “But you have to make decisions early to have production capacity and the right products for this transformation. There has been a similar transformation as in the automotive industry, and you need the courage to invest in that transformation and seize the opportunity, not just the risk. We don’t look at it as a threat to our traditional business but growth into a new one.” “You must not be afraid of change,” he adds. “You must grasp it and make the most of it.” ●
Finance Director Europe /
www.ns-businesshub.com
Vaillant Group
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77
