A board talk with Adrian Ineichen, CFO

Mr Ineichen, you have worked at V-ZUG since December 2005. What has been the best moment for you so far?

Well, of course, there have been many. However, a highlight for me was the opening of V-ZUG Studio in Shanghai in November 2014. I have great memories of that day. Another moment, that was also quite emotional, was when the company was listed on the stock exchange in June 2020 – a highly significant day for the future of the V-ZUG Group.

The IPO went very well, which is partly down to you. How would you like to contribute to V-ZUG’s further success as Chief Financial Officer?

I see finance as a service area that provides support to the whole company. This means that I see it as my responsibility to provide managers with transparent information needed for decision-making, to influence decisions with regard to commercial relevance, but also to analyse decisions retrospectively so that we can learn from any mistakes that might have been made. I think we need to continually re-evaluate whether our decisions and measures are taking us in the right direction. Many see the Financial Division as number crunchers, but I see it as much more than that: ultimately, the results of every single decision end up on our balance sheet. And that’s where it becomes explicitly clear whether we have made the right decisions or not.

You talk passionately about your job. Have you always loved numbers?

Yes, you could say that. My enthusiasm for numbers began when I was a child. My godfather was head of finance at a large company, something I found fascinating – and that was what triggered my interest in numbers. When I was a child, I compiled rankings and statistics for everything. At the age of 13, I was an guest on a radio programme about pocket money. I always knew that I’d gain qualifications of some kind in the field of finance. The fact that I’ve enjoyed working in this profession so much, and continue to do so, is something I feel truly grateful for.

How would your best friend describe you?

Reliable, honest, down-to-earth – someone who likes to have fun. I think it’s very important for us to be able to laugh every day. Whether we’re at home or at work, it’s great to have a good laugh with others.

The IPO in June 2020 was a big moment - did that also make you smile? 

Absolutely! On that day, we were there at the Swiss Stock Exchange in Zurich for the opening of trading. When the share price lit up on the board, it was a very special and memorable moment.

In your opinion, what are the challenges facing our company now and in the future? 

Our greatest challenges are also our greatest opportunities. We are in competition with much larger companies that have very different resources at their disposal. However, our modest size also works to our advantage: we are more streamlined and less complicated, which allows us to react more quickly. In order to remain successful in the long term, it is important for us to further increase the share of sales in our international markets, among other things.

What challenges are you focusing on most at the moment? 

I’m currently focusing on our company’s results and cash flow trend. The stop-and-go nature of the global economy in connection with the Covid pandemic was one factor that caused major difficulties for supply chains and substantially higher purchase costs. V-ZUG did not emerge unscathed, we have been battling for several months to restore our delivery quality to the level that our customers are used to. In order to improve our delivery capability we stocked up our inventories significantly, especially for components, semi-finished products and merchandise, which is tantamount to a pre-investment and has a negative advance effect on cash flow. The substantially higher purchase costs also impacted our result immediately. It usually takes around nine to twelve months before the sale price increases show the complete effect. The current situation is very challenging for us all, as there are always imponderables, and we are now more than ever called upon to be flexible. I’m convinced that we made the right decisions, and introduced and implemented measures. I can thus look confidently to the future despite the current challenges. 

What does the medium- to long-term trend for V-ZUG look like? 

V-ZUG will still be a gem even in 10 years’ time: the market leader in Switzerland with a relevant share of international sales. The new production processes have been introduced, and we are retaining or even expanding our workforce. For my own work, the greatest motivation is to contribute – today and in the future – to offering our employees secure jobs at a company with a strong focus on sustainability.

About Adrian Ineichen 

Adrian Ineichen is a Swiss federally certified expert in accounting and controlling, and holds a federal professional certificate in finance and accounting from the KV Business School in Zurich. Since 2015, Adrian Ineichen has been Head of the Finance Department (CFO) and a member of the Executive Committee and, since June 2020, has been in charge of the Real Estate segment. His career at V-ZUG started back in 2005 when he headed the Finance and Accounting Department. From 2014 to 2015, he was also Head of Finance & Controlling at V-ZUG (Shanghai) Domestic Appliance Co. Ltd in Shanghai. Before joining V-ZUG, Adrian Ineichen was employed in various positions as a controller at Panalpina in Basel and Hong Kong. Prior to that, he held various management and controller roles at Collano Adhesive in Sempach.