VR-Group Plc to renew its business structure at the beginning of 2023
VR-Group Plc, stock exchange release, 30 November 2022 at 15:15
VR-Group Plc to renew its business structure at the beginning of 2023
VR Group is revising its strategy, and the company's core business will be passenger traffic in Finland and Sweden, and freight traffic in Finland. City traffic, which includes both rail and bus transport, is a new growth area for the passenger business. In city traffic, VR will focus on both the Finnish and Swedish markets.
“Net sales in city traffic have grown significantly since we expanded to Sweden with the acquisition. The logic of the contract-based city traffic business clearly differs from long-distance train traffic, where ticket revenues are part of the operating model", says Elisa Markula, CEO of VR-Group Plc, explaining the reform.
According to its new strategy, VR FleetCare's main task will continue to be the quality and cost-effective maintenance of VR's rolling stock, and FleetCare will play an important role in improving VR's customer experience. In addition, FleetCare will offer European customers component maintenance, fleet modernisation and wagon manufacturing, as well as digital products.
With the renewed strategy, VR will change its business structure. VR Passenger Services will be divided into two parts: VR Long-distance Traffic and VR City Traffic. VR Long-distance Traffic will be responsible for long-distance train traffic and related services. Correspondingly, VR City Traffic will comprise VR Sverige in Sweden, VR's commuter train services in Finland, Pohjolan Liikenne and Tampere tram traffic.
In the future, the business units will be VR Long-distance Traffic, VR City Traffic and VR Transpoint (logistics). VR FleetCare's primary task is to enable competitive passenger and freight traffic with efficient fleet maintenance.
On 1 January 2023, the management team of VR-Group Plc will consist of:
- Elisa Markula, President and CEO
- Laura Ansaharju, Senior Vice President, HR
- Ilkka Heiskanen, Senior Vice President, Train Operations and Safety
- Otso Ikonen, CEO, VR Fleetcare
- Eljas Koistinen, Senior Vice President, Logistics
- Erkka Repo, CFO
- Topi Simola, Senior Vice President, VR City Traffic
- Teemu Sipilä, Chief Legal Officer (since 23.1.2023)
- Tatu Tuominen, Senior Vice President, Communications
- Piia Tyynilä, Senior Vice President, VR Long-distance Traffic
From 1 January 2023, financial reporting will be drawn up in accordance with the new structure. From that date, the business units will be VR Long-distance Traffic, VR City Traffic and VR Transpoint (logistics). The financial statements for 2022 will be prepared according to the previous segment breakdown. Comparable figures for 2022 according to the new structure will be published separately before the publication of the first business review for 2023.
VR-Group Plc
Elisa Markula, President and CEO
Further information:
VR Group media desk, tel. +358 29 434 7123
About VR-Yhtymä Oyj
We are a responsible service company in the fields of travel, logistics and maintenance and a forerunner in creating the future of mobility in Finland and in the neighbouring markets of the Nordic countries. We take care of smooth daily travel and transport, with experience gained over 160 years. While keeping society moving, we are increasing the popularity of electronic rail and urban transport. In this way, we increase well-being and transport you towards a carbon-neutral tomorrow.
Our company is owned by the State of Finland. In 2021, our net sales were EUR 838.3 million and we employed over 5,620 top professionals. On board our trains and buses, 83.9 million journeys were made, and we transported 42.7 million metric tonnes of goods. In addition, we expanded our operations to Sweden on 1 July 2022. Our subsidiary VR Sverige’s net sales are over EUR 300 million and the number of journeys made is about 110 million each year. At the same time, we welcomed 3,200 new colleagues.
We are actively seeking growth and we aim for the top in all of our operations. The better we succeed, the more society around us benefits – we are getting there together for a better world. Further information: https://www.vrgroup.fi/en
