Year 2022

Transformation of the portfolio 

We acquired 60% of Ahlstrom-Munksjö’s Décor business with Ahlstrom and Nidoco as the minority owners. The standalone business continues under the Munksjö brand, and the remaining Ahlstrom-Munksjö businesses continues under the Ahlstrom brand. The Munksjö business is a leading global player with an extensive range of décor paper solutions and is a key investment in our Forest & Fiber focus area. We see good long-term value creation opportunities in the business, while the shortterm performance is being negatively impacted by the weaker economic cycle.

The merger of two strong Europe-based electronics manufacturing service providers, Enics and GPV, was made. We believe this merger creates a more competitive business with a broad service offering and a strong global presence. Ahlström Capital holds 20% of the new company, which continues under the GPV brand. The cash proceeds of Enics exit financed the Munksjö investment.

We invested in 20% of Bast Fibre Technologies, a manufacturer of 100% plant based, intact natural fibers. We seek to invest in companies focused on solutions that help drive sustainable development.

Resilient EFV performance 

The year-to-date development of the adjusted EFV was -2.2%, ending up at EUR 1,087 million. The turbulent market had a negative impact on the investment portfolio of Ahlström Invest B.V. and the share prices of our listed companies, while Ahlstrom, the forest business and Enics transaction value impacted EFV positively. 

At Ahlström Invest B.V., the investment portfolio value has deteriorated with the market. Ahlstrom has performed strongly throughout the year, while there are signs of weakening demand in some of the businesses. 

M&J Recycling had a strong performance during its first year as a standalone company. Orders received were up 33% with an all-time highest single order from a new customer in India. The company is performing well according to our value plan.

At Munksjö, the demand situation was challenging towards the end of the year. Building up capabilities as a standalone business is ongoing. We have brought in external and internal resources to support carve out, financing and business development. 

At GPV, demand was strong throughout the year, but profitability was negatively impacted by the availability of components. At Detection Technology, the financial performance improved towards the end of the year. New investments for the Oulu factory were announced. 

Glaston had a successful year. Demand was strong, both sales and profitability improved, and strategy implementation is progressing well. 

Suominen had a difficult year due to raw material inflation, higher energy costs and US demand challenges. Several actions to improve profitability, based on a full potential study, are ongoing.

The real estate and forest businesses performed well. A new real estate development project in the Helsinki University area in Helsinki was announced and the real estate projects in Tampere and Espoo are proceeding well.

Sustainable value development 

Our Sustainability Policy was updated with Biodiversity and Diversity & Inclusion as new focus areas. Other focus areas are Business ethics & Nordic governance model, Climate & Resource efficiency and Employee well-being. Our focus area KPIs measure the development in each portfolio company. 

Our corporate social responsibility initiative, Ahlström Collective Impact (ACI), now includes all our portfolio companies. ACI made investments, totalling EUR 1.1 million, in UNICEF’s Global Education Program and to support children in Ukraine.

A new family company – A. Ahlström Oy 

The Extraordinary General Meeting on 25 November decided on the merger of Antti Ahlström Perilliset into Ahlström Capital. The role of A. Ahlström Oy is to grow the financial, intellectual and social capital of the Ahlström family and sphere. The merger was completed on 1 March, 2023. 

Our financial position is solid, while there are short-term headwinds in parts of the Forest & Fiber sector. Also, availability and the increased price of financing is impacting our portfolio and new investment opportunities. 

I would like to thank all Ahlström colleagues for the hard work done and the shareholders and the Board for the continued trust and support during the year. 

Lasse Heinonen 
President and CEO