Annual Future Report 2016
TABLE OF CONTENTS
Electrification and automation solutions for power plants
POWER GENERATION
CEO’s Review
03
Diesel and Gas Engine Power Plants
04
Marine Power
06
Thermal Power
08
Industry
10
Chairman’s Greetings
12
The Figures
14
Corporate Responsibility
16
Substations
18
Wind Power
20
Hydropower
22
Expert Services
24
VEO Around the World
26
Substations and switchgears for transmission and distribution networks
POWER DISTRIBUTION
EXPERT SERVICES
Industrial electrification and automation
POWER UTILISATION
CEO’s Review I
think back on 2016 with a smile. I remember a day in May when we gathered all VEO employees and shared a moment of genuine pride and joy, knowing that, together, we had accomplished something great. Our entire personnel had coffee and cake, accompanied by s pontaneous applause. Almost a year from that moment I still have the same feeling – 2016 was a year of growth on many levels. I’m glad that VEO has remained a wanted workplace. In 2016, we employed 24 new professionals and introduced a new mentoring programme to enhance knowledge sharing. This year we’ll keep working for a flat organisation that encourages individual growth. We’ll also continue our comprehensive ERP system update, initiated in 2016, and reap the fruits of the investments we’ve made regarding international project management, product development, and seamless production and planning cooperation. In recent times VEO has experienced significant turnover and export growth. The first half of 2016 continued that trend by bringing us two far-reaching contracts: a Norwegian hydropower framework agreement and the largest marine order in VEO history, Meyer Werft. These projects will certainly fill our order book with many new entries. VEO also experienced great growth in Sweden and the UK. Our production, logistics and engineering investments are starting to pay off. We’re certainly creating enough added value to keep production in Finland. It’s also clear that big contracts like Meyer Werft immediately take VEO’s media publicity to a whole new level.
VEO Annual Report 2016
Sales-wise I was particularly pleased with the latter half of 2016. Overall our sales grew by 30 %, which is a very remarkable result. Combined with our turnover, the growth was 15 % compared to previous years. In other words, 2017 begins with a big backlog, which in turn promises a substantial turnover growth for this year. I’m also pleased to announce that a successful working capital improvement campaign brought our operational cash flow to an all-time high. I salute the entire project and sales team – great job! VEO is now in a strong financial position. Our equity ratio is around 60 %, and we are a debt free corporation with sufficient monetary resources to grow our business. I believe in the energy industry and the growth potential this international market can offer. Megatrends – e.g. delivery reliability, energy storage solutions, waste-to-energy, circular economy and digitalisation – are quickly altering the industry. As an International Integrator, VEO has every possibility to embrace the change. Through our knowledge in project management, electrification and automation we can always connect the right technologies with the right knowledge and thus create a tailor-made customer experience. However, we need to stay awake and grab opportunities as they arise. VEO must always be ready to take a new direction. But we also need an inspiring intention that has our entire organisation aiming for the same destination. That way, 2017 will also be a year of growth.
Marko Ekman, CEO
3
Diesel and Gas Engine Power Plants Decades of experience guarantee the best solutions for our customers’ power plants – regardless of fuel type.
VEO Annual Report 2016
4
IN
our business segment, 2016 brought about a boost. Global investments developed in a positive direction, our turnover increased, and we could all feel the market moving. I would also say that we experienced some growth on a professional level. I especially remember a technically demanding LNG project that marked new territory for our client and us. It was rewarding to enter a new business area and take on a new kind of challenge.
So, what’s our next destination? It could be anywhere. Our extensive experience of global teamwork and universal standards keep us in motion. Recently we’ve been supervising power plant commissioning in Japan, Argentina and Florida. Let’s see where our work takes us in 2017 – there are still so many projects just waiting to be integrated by VEO. Johan Ågren, Vice President, Diesel and Gas Engine Plants
In general, the power generation business has reached a turning point. Conventional power production must now adapt to a new environment consisting of wind power, solar power and energy storage solutions. Anyone who wants to be a part of the c hanging world must manage these new technologies and systems. At VEO we are very focused on this part. The change is already happening and will be even stronger in the future. We want to be prepared and preferably one step ahead.
Right now, the energy business is dependent on courageous companies.
Although renewables are becoming a real option, nature will always be a powerful, yet unpredictable energy source. That’s where we come in – I don’t think our solutions are going anywhere for a very long time. Also, I’m very pleased that the entire industry has regained the courage to make significant investments again. Although different economic support models are still creating challenges in some markets, this is a positive wave that we all should ride on. Right now, the energy business is dependent on courageous companies that are ready to embrace new technologies that move us all forward.
VEO Annual Report 2016
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Marine Power VEO offers wide arrayguarantees of reliable Decades of aexperience and marine approved products and the best solutions for our customers’ solutions. power plants – regardless of fuel type.
VEO Annual Report 2016
6
A
word that sums up 2016: Busy. I moved to a new department within VEO to find new challenges, and the marine segment at the Industry business unit gave me just that. Last year a large order from the German shipyard Meyer Werft instantly took VEO’s marine business to a whole new level.
owner also appreciated the possibility to see our demo boards in advance. We reached a point where all parties, as much as possible, agreed on the solutions and implementation – before the project had begun. As a bonus, VEO could also create a new low voltage cassette solution that we can utilise in other switchgear deliveries as well.
The agreement with Meyer includes the electrification of 4 cruise liners and an option for further vessels. Half of the ships will be built at Meyer Werft’s shipyard in Papenburg, Germany, and the other half at the company’s shipyard in Turku, Finland. Around the time this annual report is being printed, we are starting our first Meyer equipment deliveries. Before the second week of 2018, our last deliveries for that first ship will be done. Deliveries for Meyer’s second vessel are scheduled to begin in late 2017. Our initial plan was to deliver 1 ship per year, but, if needed, I believe we can tighten the schedule. After completing a very extensive and demanding design process and a successful productising project – including comprehensive pre-design, modelling, testing and fine tuning – everything should be easier for further vessels. We build all switchgears and panels at VEO’s factory in Vaasa, so we have every possibility to be fast and flexible.
Although many balls still need to be kept in the air, it’s been a great experience to reach the same wavelength with a new customer. The Meyer Werft order will have our hands full for several years to come, but our cooperation with other shipyards and valuable local partners will, of course, proceed as usual. VEO’s focus will continue to be on cruise liners and specialised vessels, which are currently in very good demand. I believe we’re on a growth path right now and – as VEO’s professionals keep walking that extra mile – this route will give us godspeed in 2017 as well.
The marine business operates under strict safety norms, emphasising product usability and reliability. Our customer has high demands, and it was a pleasure to witness VEO’s ability to tailor products according to customer requirements. The yard and the ship-
VEO Annual Report 2016
Ilari Kiljala, Project Manager, Industry
It’s been a great experience to reach the same wavelength with a new customer, Meyer Werft.
7
Thermal Power Extensive experience and proven Âtechnology ensure the best productivity.
VEO Annual Report 2016
8
2016
was a historic year. We finished VEO’s largest thermal power project ever in Skövde, Sweden – completely on schedule – in cooperation with our customer Valmet. We also began a renewable energy electrification project in Denmark together with our customer Andritz. It feels good that VEO has arrived to yet another country. Congratulations, Denmark – you will hear much more from us in the future!
VEO is what I would call an International Integrator. When the world is your worksite, you need to roll up your sleeves with a genuine will to cooperate. Global projects don’t have complimentary seats. You must be on top of things all the time. Our projects combine VEO’s expertise with the know-how of our trusted partner network, and that’s what makes them great. If you get the chance, I recommend visiting a VEO worksite. The level of cooperation is a pleasure to witness.
I enjoy working with thermal power projects, because they combine VEO’s entire knowledge potential – from the first automation and electrification concept plan to programming, production, installation, testing, excitation and training to the last handshake with a pleased end user. In between, we need to consider various demands, compete with costs, work with partner companies and supervise subcontractors. Yes, these are massive projects – probably the most comprehensive ones at VEO – but that’s part of their charm. Project management and clear work phases, thoroughly planned by our professionals, ensure that we stay on schedule.
So, what can we expect from 2017? That remains to be seen. In Q2 we probably know how the Finnish government plans to implement Finland’s new energy and climate strategy, approved on 24 November 2016. One of the strategy’s main goals is to replace imported energy, e.g. oil and coal, with domestic fuels by supporting CHP production facilities. The thing is, a bit under half of Finland’s CHP capacity will be technically outdated in 2030. If you ask me, CHP production investments can only be encouraged through the right incentives. I also hope these incentives will kick-start renewable biofuel power plant investments. However, while Finland’s primary focus is on heat production, there are several European CHP and electricity generation projects that use various energy waste products as well as biomass, e.g. wood chips and bark, and industry branch currents. I certainly see growth potential for VEO’s CHP and Waste to Energy projects, particularly on the UK and Nordic markets.
When the world is your worksite, you need to roll up your sleeves with a genuine will to cooperate. VEO Annual Report 2016
Rami Luoma, Key Account Manager, CHP Plants
9
Industry Our strong process know-how guarantees optimal solutions.
VEO Annual Report 2016
10
VEO
’s Industry business unit is experiencing strong growth on many levels. In fact, all segments – Industry, Marine and Thermal Power – did well last year. We also took part in many interesting negotiations, e.g. in UK, Germany and Singapore, resulting in major contracts. They also strategically enabled to lift the UK as VEO’s new main export country. An interesting year, to say the least. I’m especially pleased with how well our marine side developed. The major contract with German shipyard company Meyer Werft gave us never before seen publicity and boosted VEO’s profile and visibility. The mega deal includes the electrification of 4 cruise liners and is expandable with many other options. It’s set to continue until 2023, and the total employment effect is maximum 100 working years. We’ve already been recruiting new experts and will continue doing so. What also excites me is, that the productization part of the Meyer case has been s uccessful, already leading to big improvements, which can be adapted for the whole VEDA low voltage switchgear platform – especially the new withdrawable solution.
The UK has a lot of potential, and I’m very pleased that 2016 opened important doors to this new VEO market. VEO Annual Report 2016
Moreover, 2016 set some notable milestones. For example, we received a big and important deal in Scotland – our first full turnkey delivery for electrification in the UK industry sector. Around the same time, we successfully completed the largest CHP plant turnkey project in VEO history in Skövde, Sweden. Continuing the same theme, Andritz placed an order on their very first CHP project with VEO. The power plant will be located in Denmark, which marks new ground for us. New country, new thermal power customer – what more can you ask for? There’s a lot to do, but that’s the way we like it. Strong positive signals of a growth conjuncture are everywhere. Especially renewable and energy efficient solutions will be even more sought after in the future, as environmental agreements demand the decrease of CO2 emissions. For example, the UK currently has the highest waste-to-energy power plant investments in Europe. One by one dumps become smart power plants that turn waste into thermal power, electricity and district heating. In other words, the UK has a lot of potential, and I’m very pleased that 2016 opened important doors to this new VEO market. Good outlooks, growth and lots of potential – that’s how we’re entering 2017. It’ll take a lot of work to keep up with this pace, but, as I said, these are positive challenges. VEO is becoming more and more international, but it wouldn’t be possible without our customers and trusted partners. Global networks, technical cooperation and strong project entireties – that’s what international integration is all about. Jarkko Aro, Vice President, Industry
11
It’s
been a pleasure to see how things are progressing at VEO. A relentlessly stubborn will to move forward clearly creates results. Thank you, everyone, great job! It’s very rewarding to reap the fruits of the past decade. VEO is now a known and renowned company with the excellent reputation the company deserves. Especially the big a greements of late have given us a lot of publicity. Receiving the Ostrobothnian entrepreneurship award was also an important act of recognition. The energy sector has been a good business choice since the beginning. A successful strategy day in September 2016 showed that both board and management agree that VEO is still on the right path. In 2016, we experienced growth on many levels and successfully entered new areas of business, e.g. ship electrification. Furthermore, our general agreement with I.C. Electrical in the UK marks the beginning of what I hope will be a steady foothold in a new market. It was also good to see sales flourishing in familiar markets. For example, the frame agreement with Norwegian hydropower giant Eidsiva was a real victory. I’d also like to point out our advancements on the challenging Swedish market. I hope that our partial ownership of Svea Power will function as a stepping stone for future operations in Sweden. In Finland, cooperation with WE Tech Solutions and Danfoss are getting tighter and stronger.
It’s important to remember that people, not machines, make results.
Different markets need different solutions, and thus VEO should enter with the right kind of knowledge. We should plant seeds where there are lucrative growth possibilities. There’s a lot of potential. At the same time, we must also make sure that we finish all the internal development projects we launch. Rather than being stuck in long-lasting internal development, we should find more partners that can make us stronger. For example, our UK partnership is the kind of cooperation that I wish would exist in every business area. When we combine our core competence with the know-how of c ompanies like I.C. Electrical, the alliance is quite unbeatable. The future is certainly an interesting thing. New energy production sources such as solar power, wave power and grid management are
showing us where the energy business is heading. Although we have most of the expertise, we need to be present when the business possibilities arise. We need to ask ourselves what kind of knowledge will solve tomorrow’s challenges and how we can make maximal use of new technology. However, it’s important to remember that people, not machines, make results. Thus, VEO must remain a great workplace for future experts. To me, VEO is more than an international integrator. We solve global energy challenges by offering know-how and products superior to our competition. We lead the change. Upward and forward – that’s the direction for increased competitiveness. That’s the mindset we must take with us into 2017 and beyond. Mauri Holma, Chairman of the Board
BOARD OF DIRECTORS 2016 Henrik Skytte, Stefan Storholm, Mauri Holma (Chairman of the Board), Marko Ekman (CEO), Jan-Christer Eriksson, Jarmo Saaranen and Pasi Tuominen.
VEO Annual Report 2016
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THE FIGURES
INCOME STATEMENT VEO GROUP
1.1.–31.12.2016
1.1.–31.12.2015
TURNOVER
75 643
74 334
-119
54
Other operating income
117
243
Variable and fixed costs
-73 273
-71 364
OPERATING MARGIN
2 368
3 267
Depreciations and write-downs
-1 285
-1 367
OPERATING PROFIT
1 083
1 900
295
231
-362
-532
1 016
1 599
-266
-386
750
1 212
Change on inventories of finished goods and work in progress
Share of result of associated company Financing income and expences
PROFIT BEFORE EXTRAORDINARY ITEMS AND TAXES Income taxes
PROFIT FOR THE FINANCIAL YEAR
BALANCE SHEET 2016
2015
9 697
9 226
30 857
27 425
40 554
36 651
Invested Capital
2 804
2 795
Available Capital
16 552
16 676
Long-term liabilities
763
693
Short-term liabilities
20 435
16 487
LIABILITIES IN TOTAL
40 554
36 651
VEO GROUP ASSETS Fixed Assets and other long-term investments Current Assets
ASSETS IN TOTAL
SHAREHOLDERS' EQUITY AND LIABILITIES
LIABILITIES
FINANCIAL RESPONSIBILITY Our mission is to create growth and well-being through our energy sector expertise and responsible operations. Our goal is to create added value for our shareholders, customers, suppliers, employees and the local community. A solid economic basis secures the continuity of our business and enables us to meet our social and environmental responsibilities. We recognise our shareholders’ goal of return on their long-term investments and create added value for our customers by delivering solutions that meet their expectations. Our objective is to provide our key suppliers with favourable conditions for long-term and mutually beneficial cooperation. We fulfil our tax obligations in all the countries in which we operate and condemn all forms of corruption or fraudulent practice.
ENVIRONMENTAL RESPONSIBILITY Our objective is to offer energy and material efficient solutions and processes. We strive to minimise the amount of waste generated by our activities and to maximise waste recycling. In addition to waste management, energy consumption and carbon footprint management are the most significant environmental aspects related to our operations. Our environmental management system has been certified to ISO 14001:2004. We are committed to identifying and implementing all legal and other requirements related to our operations. We monitor the environmental impact of our activities, and have implemented programmes for achieving our environmental objectives and targets.
SOCIAL RESPONSIBILITY To make our working environment healthy and safe, we follow international, national and local legislation, regulations and agreements, and minimise any potential adverse effects of our operations or products. Our occupational health and safety management system has been certified to OHSAS 18001:2007. We are a member of Zero Accident Forum and have committed to the Zero Accident Vision. In 2016 we were thrilled to reach LEVEL 1, which means that our safety is world class! In our work community, agreements are made for the common good. Equality is a natural part of our organisational culture. We believe that great management is the foundation of an enjoyable and safe working environment. We also want to provide our employees with competitive pay, flexible ways of working and opportunities for self-development. The employees of VEO are the company’s most valuable resource. Therefore, we encourage healthy lifestyles and promote the physical, mental and social welfare of our staff. We do this through preventive health care and measures aimed at maintaining the ability to work. Based on the measurement results, VEO’s management sets annual goals, and secures adequate resources to achieve them.
According to our employee survey, 98 % of the respondents would recommend VEO as a workplace. That means we’ve done things right.
F
rom a resource perspective, 2016 was a year of growth. We recruited a lot of new professionals and felt an overall positive buzz throughout the company. We were also able to negotiate good local agreements to increase flexibility – both from an employer and employee point of view. Growth and positive business development are, after all, a steadfast starting point for all kinds of development. Overall, VEO continued to be an active and visible player – especially in our hometown Vaasa. We sponsored sports clubs and other activities that benefit children and youngsters. I’m also happy about how our cooperation with different local schools has evolved, e.g. through the significant number of internships we can offer. An internship at VEO is a memorable experience and a very valuable addition to a vocational education. 2016 was also a year of wellbeing. At VEO, we value people development and wellbeing at work and want to emphasise these things in our leadership and organisation. We also want to be an example when it comes to social responsibility and safety management. We want to create a workplace where everyone can complete his or her workday – at the office, in our factory, at one of our worksites – in a safe way and get home safely once the work is done.
VEO Annual Report 2016
In the future, ‘together’ will be a keyword. Cooperation is the key to success. The employer and the employee should together think about how the company could develop. It’s becoming increasingly important to understand people and in an open and humane way. The entire organisation ideology has changed, and we’re changing with it. We want our Managers to encourage and coach people to achieve their goals, to develop and access their full knowledge potential. We want people to be open and share their tacit knowledge so that the entire organisation can, in turn, access its full potential. To my delight, VEO’s management and staff have already embraced this idea very well. According to our employee survey, 98 % of the respondents would recommend VEO as a workplace. That means we’ve done things right. VEO already has the skill to find the best possible solutions – inside and outside of our o rganisation. The secret to success is to keep an open mind, because potential can be hidden anywhere in the organisation. Hanna Myllymäki, HR Director
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Substations VEO’s power distribution solutions improve reliability, safety and efficiency.
VEO Annual Report 2016
18
AT
VEO Substations, we have left a record-breaking year behind us. Our overall sales improved by 27 %. We sold some 50 projects. We doubled our sales in Norway and quadrupled our sales in Sweden. Our team grew with 7 full-time and 5 part-time experts. I’m also glad that our sales in Finland remained on the same good level as in 2015 despite fierce competition. Growth is challenging in this economic climate, so we can be very proud of our excellent results. We’ve had large projects in the past now and then, but as 2016 made these projects more regular, we also experienced another kind of growth. We grew our knowledge, and we grew as an organisation. Some projects worth mentioning are Fingrid’s green field Vuoksi station (110 kV) and 9 substations we are building for Caruna and Elenia. The way I see it, it’s vital that we grow into these big, challenging projects, proving our competitiveness and earning the trust of our customers. Last year was also important image-wise. We took part in several interesting discussions with some of our major customers and were invited to several key supplier meetings to give our opinion regarding future investments. VEO also received lots of visitors who were very interested in our modular solutions. The important thing for us now is to keep going in this direction. One step in the right direction was to open an office in Västerås. It marks a good starting point for a long-term, profitable growth in Sweden.
Recent years have proved that new investments are being prioritised instead of repairs and maintenance. My guess is that the investment pace will be high for the following 5 years – especially among big distribution network companies and national grid companies. Let’s see what Finland’s new renewable energy strategy brings to the table to boost the investments in that segment. Despite many question marks on the market, I feel that our substation unit is equipped to take on whatever comes next. As an EPC contractor, we are used to working with all aspects in turnkey deliveries – from civil works to high voltage and advanced protection and control solutions, all held together through strong engineering and project management knowledge. Sometimes we are faced with very demanding sites – e.g. building a substation in central Stockholm with the space confinements that means – but at VEO we welcome the challenge. Because that’s what international integrators do. Fredrik Grankull, Vice President, Substations
New investments are now being prioritised instead of maintenance. My guess is that the investment pace will be high for the following 5 years.
VEO Annual Report 2016
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Wind Power VEO helps to harness the power of the wind into clean energy.
VEO Annual Report 2016
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A WORD FROM OUR VP
IN
Norway, 2016 was a record-breaking year. We experienced an all-time high in all areas, including hydropower and substations. I’m particularly excited about our wind power projects. Last year an increase of 140 % Norwegian wind power capacity was under construction, and VEO was involved in that growth. Although the electricity certificate programme run by Sweden and Norway creates uncertainty in the renewable energy market, we landed, among others, two of the largest construction projects in 2016: Egersund and Hamnefjell. We were also chosen as preferred supplier for three upcoming new wind farms. Moreover, several interest groups have plans to build significant wind power capacity throughout the country in the future. Let’s hope for some good political decisions which turn these ideas into profitable projects. However, wind power doesn’t necessarily have to be entirely dependent on politics. As advancements in technology and lower production costs will increase profitability, wind power investments can become stand-alone without financial support schemes. Others look for alternative financing models. For example, Google decided to supply their European data centres with 100 % of renewable energy sources and signed a 12-year contract for power supply from a wind farm in Norway. I think the years leading up to 2030 will be very interesting indeed.
electricity is widely available, most households have electrical heating. Also, every sixth new registered car in 2016 was powered by electricity. Moreover, the Norwegian national grid operator, Statnett, is expanding from North to South, with the aim of connecting all wind farms and hydropower plants in the country to the grid. New high voltage cable links are planned from Norway to Germany and the UK, making Norwegian wind power attractive. The result? Norway will triple its power capacity by exporting renewable energy equalling 5 nuclear power plants. Once the infrastructure is in place, Norway will become a European battery.
VEO is known as the guy who isn’t afraid to take on challenges – not because he’s stupid enough to do it, but because he can handle the risks professionally.
Personally, I believe in a fully electric future. Not surprisingly, Norway will be a forerunner when it comes to electrical development. Because
I’ve learnt that the wind power business requires a fearless attitude and courage to take on things that others shy away from. VEO is known as the guy who isn’t afraid to build the internal grid and substation for above 70 windmills and deal with 80 km of high voltage cables. Not because he’s stupid enough to do it, but because he can handle the risks professionally. At VEO, we just make things work. Our job is to stitch together large, complex projects by integrating different kinds of knowledge and products supplied by our global sales network. That calls for an innovative spirit and the will to be solution oriented. Our big projects prove that we can do it. But we won’t stop here – our easily scalable and thoroughly tested solutions enable us to work without being restricted by the size of the wind farm. So, once the political game takes a new turn, we’ll be there, we’ll be ready. We’ve already spread our wings to catch this gust of wind. Viktor Forss, Managing Director, VEO AS, Norway
VEO Annual Report 2016
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Hydropower VEO changes rivering waters into pure energy.
VEO Annual Report 2016
22
A
new year, a new product – that’s a pretty good start. Generator Commander, developed together with Arcteq, is unlike anything the energy business has ever seen before. In other words, we’re currently in the middle of a revolution. And that’s a good place to be. Generator Commander does the job that previously required 5 different devices. When our first Generator Commanders were commissioned, we, together with Arcteq and Svea Power, made global history by gathering all generator auxiliaries to one device. This year we will focus on general improvements and on expanding excitation power functionality to a whole new level. Several Generator Commanders have already been sold and the enthusiasm in the market is vast! In close cooperation with Arcteq, I honestly believe that we have every opportunity to launch this product to the world market. Project-wise 2016 was also a remarkable year. We handed over Harjavalta G3, a new unit for the existing power plant. The existing and refurbished G1 and G2 units will be delivered at the end of this year. Finland hasn’t seen an entirely new turbine generator investment of this magnitude in a few decades, so I’m proud that we were a part of that story. Another highlight is the frame agreement with one of Norway’s
big energy producers, Eidsiva Vannkraft AS. The frame agreement, extending to the end of 2020, gives us a great base load for the coming years. We also signed our hydropower department’s biggest contract ever, Nedre Otta. The project will continue until fall 2020 and keep us busy especially in 2018–2019 in the office and 2019–2020 at the site. We are part of this NOK 1,2 billion investment as Eidsiva is building one of the largest new hydropower plants in the Nordic countries. I’m looking forward to this cooperation. Renewable energy, including hydropower, is one of the global megatrends. Hydropower can meet the need for reserve power production. It has the advantage of fast power system disturbance support unlike wind power or solar power. Especially in Finland and in Sweden, the trend in the hydropower sector is to focus on rehabilitations instead of building new hydropower. VEO can increase the usability and reliability of old power plants through system upgrades. As a project integrator, we’re ready for the new way of thinking that renewable solutions require. VEO’s philosophy is to combine a broad range of products and solutions with local expertise and keep things flowing smoothly throughout the entire project. Thus, I feel confident enough to say that whatever new currents 2017 has in store, our customers can sit back and focus on energy production – we got this.
We’re currently in the middle of a revolution. And that’s a good place to be.
VEO Annual Report 2016
Kim Råholm, Vice President, Hydropower
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Expert Services Expert and life cycle services at your service 24/7.
VEO Annual Report 2016
24
I’m
proud to say that quick renewal project deliveries were a central part of 2016. The first project that comes to mind is a production outage at Stora Enso’s Veitsiluoto factory. We changed 7 medium voltage switchgear cubicles in 50 hours and – at the same time – dealt with a parallel renewal project in 10 hours in the same factory. Once again, this proved our ability to work fast in critical situations. We also worked on a notable renewal project that required more planning and preparation than usual. Despite this, each work phase was very swift – from planning to installations and c ommissioning.
Our customers clearly ask for our advice and want us to be p resent throughout the entire project – from e xecution to education and life cycle management.
Workwise 2016 was quite a typical year with 200 completed projects. We had a steady flow of orders, with a focus on medium and high voltage electrifications and automation. Last year our technical experts were also asked to investigate a lot of sites in need of renewal. I think this proves how valued VEO’s expertise really is. Our customers clearly ask for our advice and want us to be present throughout the entire project – from execution to education and life cycle management.
We cooperate with many of the major manufacturers in the energy field and can always offer our customers the best possible solutions. VEO’s international integrator ideology invites us to keep our eyes open for cooperation at all times. I think this mindset will lead to many new possibilities where we can spread our expertise around Europe in 2017. It takes will, and it takes skill, but luckily we have them both right here at VEO.
While on the subject, the importance of sufficient life cycle management cannot be stressed enough. I feel that a maintenance debt has been building up these past years, as many such investments have seemed to be put off. I wish that companies would realise the importance of regular updates. Right now, we’re talking with our customers a lot about cyber security. As everything is connected online, power plants become more vulnerable to potential cyber threats. We have seen that the energy sector is already under attack. This year we’ll focus even more on combining IT and automation to improve our customers’ cyber security.
Esa Ala-Honkola, Vice President, Expert Services
VEO Annual Report 2016
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CUTTING−EDGE AUTOMATION AND ELECTRIFICATION SOLUTIONS IN OUR HOME MARKET “VEO have delivered a redundant high voltage power supply to N01 Campus. We are very satisfied with VEO as a turnkey supplier.” - Rune Bang, Project Manager, Bulk Infrastructure AS – N01 Campus datacenter
“I like a working model where subcontractors take responsibility for larger entities. I am very pleased with VEO and our co-operation.” - Sammy Tanhua, CEO, Skövde Värmeverk AB
“VEO is a partner with experience and expertise.” - Stephan Schmees, Director of Project Management, Meyer Werft
“VEO meets all the requirements for Fingrid’s A-class substation supplier.” - Daniel Kuosa, Construction Manager, Fingrid Oyj
Our estimate of VEO’s 2017 worldwide sales
Other countries
21 %
Finland
33 %
Germany 4 % Great Britain
8%
VEO Annual Report 2016
Sweden
Norway
13 %
21 %
26
Fingrid Oyj
Meyer Werft
Bulk Infrastructure AS – N01 Campus datacenter
VEO Annual Report 2016
Skövde Värmeverk AB
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veo.fi
VEO is an energy expert offering electrification and automation solutions for power generation, transmission, distribution and utilisation. Half of the company’s revenue comes from renewable energy solutions. VEO’s headquarter is located in Vaasa, Finland and the company also has subsidiaries in Sweden and Norway.