Year 2021

CEO’s review:
Strong value creation through portfolio transformation

In 2021, important changes were made in our portfolio. Ahlstrom-Munksjö was taken private together with Bain Capital and Viknum. The acquisition of M&J Recycling reflects our ambition to drive sustainable businesses in our portfolio. Destia was divested to an industrial buyer Colas SA. We also increased our real estate portfolio through the acquisition of 25% in Avain Yhtiöt and announced two new real estate projects: new business premises in Tampere and the Green Chemistry Park in Espoo.

Developing Ahlstrom- Munksjö to its full potential

To accelerate the development of Ahlstrom-Munksjö to its full potential, we joined forces with Bain Capital and Viknum and initiated the steps for developing the company in a private setting. The ownership of the Ahlström family and Ahlström Capital in Ahlstrom-Munksjö was consolidated through a share exchange to Ahlström Invest. Through the take private project a significant amount of family capital was released to Ahlström Invest BV. Ahlström Invest recruited a new team and has successfully invested capital based on its financial investment strategy. Ahlstrom-Munksjö was delisted in June and the transformation related development programmes are in good progress. The demand for Ahlstrom-Munksjö’s products continued on a high level and both revenue and profitability increased during 2021.

Changes in our industrial portfolio

During 2021, we made two important changes in our portfolio. Through the acquisition of M&J, the former waste recycling business of Metso-Outotec, we will drive sustainable business in a growing market. M&J Recycling has a strong growth profile with a proven track record and Ahlström Capital can, as an owner, support the company as a standalone business. We also divested Destia to Colas SA. Destia has, during Ahlström Capital’s ownership, developed into a value-driven, leading infra company in Finland. With Colas as the new industrial owner, the company is in a good position for the next phase of its growth journey. Destia’s financial performance during 2021 was strong.

New investments in our real estate portfolio

We made a new opening in the residential sector as we invested in a 25% ownership of Avain Yhtiöt. This investment complements and diversifies our real estate portfolio. Avain Yhtiöt’s performance during 2021 was in line with expectations. A. Ahlström Real Estate also announced two new real estate investments: new office premises in Tampere city centre and a Green Chemistry Park concept in Espoo.

Strong EFV growth

Our EFV development was strong and the dividend adjusted EFV increase was 16.2%. The increase was driven by the Destia valuation and value growth in listed companies and Ahlstrom-Munksjö.

At Enics, demand was strong and order backlog was record high, but the company was strongly impacted by the global shortage of semiconductors. A manufacturing transformation programme is ongoing, and various alternatives to improve Enics’ competitiveness are being evaluated.

M&J Recycling had strong growth in orders especially in the project business, but revenue growth was impacted by supply chain constraints and customer project delays. The stand-alone business is being developed according to plan.

Detection Technology had strong growth in medical solutions and demand in industrial and security solutions picked up during the second half of the year. The growth pace was restricted by a shortage of components.

At Glaston, markets recovered during the second half of the year with high demand in all segments.The received orders were 41% above the previous year. The new strategy for 2021–2025 is targeting improved organic growth and profitability and also include sustainability targets

At Suominen, the situation in 2021 was twofold. During the first half of the year, both revenue and profitability continued at record high levels, while the volumes dropped in the second half of the year due to overstocking in the value chain. The near-term outlook is still very volatile. Suominen’s sustainability
strategy is developing well.

A new and unified Ahlström identity

During 2021, we worked together with Antti Ahlström Perilliset and all the stakeholders to update the Ahlström identity. The family values, ambition and responsibility, continue to guide everything we do. Our mission is to drive a better world for future generations through sustainable value creation.

ACI more than doubled the donations

Ahlström Collective Impact (ACI) joins together Ahlström network companies, Ahlström Foundations, Antti Ahlström Perilliset and the Ahlström Family to support UNICEF’s work for a better future for children. In 2021, ACI donated a total of EUR 600,000 to UNICEF’s Global Education Program. Ahlström Capital’s contribution was EUR 100,000.

Strong financial position in a volatile market

Ahlström Capital’s financial position is strong. The increased liquidity after the divestment of Destia is giving us a good capability to capture new opportunities in the turbulent market. I would like to thank all the employees for the hard work done as well as the shareholders and Board for the
continued trust and support.

Read more about our Annual Report 2021 here.

Read more about previous years’ overviews here.