The Group's incoming orders increased further compared to the already very high level of the previous year. Sales increased noticeably, and both the operating result and the net profit for the year grew significantly. The company's broad sectoral and geographical diversification and its further strengthened market position in the three Group Divisions contributed to this development, as did its regional supply chains. Voith also benefits from its solid financial strength, which enables it to make substantial investments in the development of innovative technologies and in acquisitions to tap into strategic growth areas, even under difficult conditions.

Dr. Toralf Haag, President and CEO, commented on the 2021/22 fiscal year: "Voith has grown profitably under challenging conditions. We have not only shown that our clear strategic focus on sustainable technologies is paying off. We have also once again demonstrated the resilience of our business model. We are therefore well positioned to continue our sustainable growth course even in an economic environment that is likely to become even more difficult in the short term and to emerge stronger from this crisis-ridden period."

Key financial figures 2021/22: profitability improved

The Voith Group's key performance indicators improved in the 2021/22 fiscal year, boosted by recent acquisitions and currency effects. All three Group Divisions contributed to this development.

At 5.16 billion euros, incoming orders exceeded expectations and were up 3% on the previous year's very high figure. At 7.03 billion euros, the order backlog exceeded the 7 billion euro mark for the first time and was therefore a good 12% higher on the balance sheet date than a year earlier. Group sales also exceeded expectations with an increase of 15% to 4.88 billion euros. This was due in particular to the high level of incoming orders in previous years, which could be better processed again following the end of the coronavirus restrictions in many parts of the world. At plus 21%, the operating result (EBIT) rose faster than sales and reached 200 million euros - even though the earnings situation in Germany remains unsatisfactory. The return on sales increased slightly to 4.1% (previous year: 3.9%), while the return on capital employed (ROCE) was in double figures at 10.5% (previous year: 9.6%). The Voith Group's net profit for the year, which was just positive at €1 million in the previous year, rose to €30 million.

In the past fiscal year, Voith once again invested heavily in the future success of the company. Expenditure on research and development increased by 11% to €213 million. The Group is in a good financial position to maintain its R&D expenditure at a high level in the coming years. The equity ratio remained very solid at 24.1% as at the balance sheet date. Cash flow from operating activities was again clearly positive at 93 million euros. Net debt remains very low. Dr. Toralf Haag: "Even after the substantial acquisitions of the recent past, we have the necessary financial leeway to invest in growth in line with our strategic priorities."

Group strategy consistently driven forward

In the past year, Voith continued to systematically drive forward its Group strategy, which is geared towards the megatrends of decarbonization and digitalization. Both in the expansion of its core business and in the development of new business areas and markets, the particular focus is on sustainable technologies. Voith is thus positioning itself as a trailblazer for industry in the post-carbon age - itself net climate-neutral at all locations worldwide since this year.

An important goal for Voith is to utilize its expertise in the areas of hydropower, paper production, mobility and industrial applications beyond its current product portfolio. Voith has identified hydrogen technology, electric drive systems, cargo rail and energy storage as particular growth areas.

In the past year, Voith made progress in all areas on the path to market maturity for innovative solutions. For example, Voith is developing a complete hydrogen tank system across all Group Divisions that will allow easy integration into vehicles. Here, Voith can utilize the expertise it has built up over the years in the processing of carbon. The further development of electric drives for means of transportation such as buses, trucks and ships as well as for industrial applications is also of great importance. Voith has developed an automatic freight coupler, including digital solutions, to contribute to the automation of rail freight transportation. In the growth area of energy storage, Voith is currently focusing on the development of a redox flow battery that makes it possible to stabilize power peaks in solar farms or wind farms, for example.

Further targeted acquisitions also contributed to the expansion of the product portfolio in the past fiscal year. For example, Voith entered the promising off-highway market with the majority takeover of Argo-Hytos. Argo-Hytos develops and produces hydraulic components and system solutions, particularly for agricultural machinery, construction machinery and material handling vehicles.

In the year under review, Voith also signed an agreement to acquire IGW Rail, which took effect on October 4, 2022, after all official approvals had been granted. IGW Rail is a global high-tech company that focuses on customer-specific transmission and coupler solutions for the rail vehicle industry. The acquisition ideally complements Voith's existing activities in the market.

An important milestone in its strategy to strengthen its core business in the field of sustainable technologies was the acquisition of the remaining 35% of the shares in Voith Hydro Holding GmbH & Co. KG from the previous joint venture partner Siemens Energy, which was completed on March 1, 2022. As a result of the transaction, Voith has become the sole owner of the Group Division Hydro and thus of this important business for the energy transition.

Outlook for financial year 2022/23

The outlook for the current financial year 2022/23 is subject to major uncertainties. These include, in particular, the war in Ukraine and its consequences, the exceptionally high inflation rates worldwide - with possible further significant price increases for materials, personnel and energy - and the associated restrictive monetary policy of most central banks, the coronavirus pandemic, which has not yet been overcome, and ongoing disruptions in supply chains. Against this backdrop, the growth prospects for the global economy continue to deteriorate. All of the regions relevant to Voith are affected by at least some of the aforementioned growth-inhibiting factors.

Voith itself has proven its resilience in recent years. Even in times of crisis, Voith has consciously continued to invest in research and development, company acquisitions, training and the strategic and organizational development of the company. Voith has thus put itself in a position to continue to grow sustainably and profitably in the future.

For 2022/23, Voith expects Group orders received to be at a good level, but slightly below the high level of the reporting year. The high order backlog will gradually be reflected in rising sales in the coming years. Voith anticipates slight growth in Group sales in the 2022/23 fiscal year. The company aims to further improve its profitability despite the effects of inflation, with efficiency gains from structural measures implemented in previous years becoming increasingly visible. A further noticeable increase in EBIT is planned for 2022/23. All three Group divisions are expected to contribute to this. ROCE is also expected to increase in line with the operating earnings trend.