Financial sustainability
Our operations are mainly funded by service and project contract fees charged to customers. The aim is to ensure cost-effectiveness. We take financial sustainability into account in all our procurements.
At Valtori, we strive to reduce the negative financial impacts of our operations in different ways. In 2023, improvements in cost-effectiveness and the development of travel costs were at the centre. We also continued to systematically automate purchase and sales invoicing.
Improved cost efficiency
Valtori’s cost correlation for 2023 was an excellent 99.9%. The turnover increased by €35 million (8.1%) from the previous year. The productivity and economy of operations also developed positively.
Valtori’s productivity index measures the productivity of the work carried out in services that are mainly produced by our own workforce. Labour productivity in standardised services increased by about 7% from 2021 to 2023. Productivity improved especially in Tori operations. The share of indirect costs was 12.6% and increased slightly from the previous year, but still improving in Tori activities. In Tuve activities, the figures were slightly weakened by the large investments in competence development and the induction of new personnel (e.g. Valtori Akatemia).
Productivity calculation will be expanded to new functions and services in 2024, and it will also be included in the 2024 performance agreement.
Image: Productivity index 2021–2023 (%) (image source: Valtori)
The price development of the services describes the development of Valtori’s cost-effectiveness, as the principle of pricing is the cost-effectiveness of the services, i.e., equal income and expenses.
Valtori’s unit prices for standard services decreased by an average of 4.5% from 2019 to 2023. Taking into account inflation in 2022–2023, real prices decreased significantly more.
Image: Development of unit prices for services 2019–2023 (%) (image source: Valtori)
Development of travel costs
Travel increased considerably during the year as the COVID-19 pandemic eased. This growth is naturally explained by the need to meet colleagues, customers, ICT suppliers and other stakeholders face-to-face after a long period of time.
The increase in travel was obviously also reflected in costs, and the framework set for 2023 was exceeded. The 2024 travel budget has been set at the level actualised in 2023, and the actual costs are reported on a unit level.
Image: Travel expenses (€) divided by the number of person-years (source: Annual financial reporting, image source: Valtori)