Boreo Plc

Climate Impact & Sustainability Data (2022, 2024-01 to 2024-06, 2024-01-01 to 2024-09-30)

Personnel share issue where employees invested EUR 1.5 million in company shares.
Launch of Boreo Academy.

Long-term Goals:

Supply chain disruptions
Unsuccessful ramp-up of SANY operations in Finland and Sweden
General market risks linked to the crisis in Ukraine (demand, supply chains, delivery times, prices, inflation)
Growth through acquisitions (availability of targets, integration, personnel commitment)
Customer demand and cyclicality (short order books)
Principal relationships (dependence on principal portfolio)
Position in the value chain (defending sales margins)
Personnel turnover
Trade agreement risks
Financing risks (interest rate, currency, liquidity, credit risks)

Exit from Russian market
Exit from SANY excavator business in Finland and Sweden
Improved capital efficiency
Focus on instilling capital efficiency thinking, growing capital allocation opportunities, and developing the Boreo Way in 2023.
Acquisitions of 9 new companies with strong cash flow generation.
Improved decentralized operating structure with Boreo Clock and Game Plan concept.
Strengthened financial position and reduced net debt relative to operational EBITDA.

Long-term Goals:

Short-term Goals:

Challenging market conditions, low demand (especially in construction), decline in revenue from Putzmeister operations and electronic component distribution businesses in the Baltics.
General market and economic uncertainty caused by the crisis in Ukraine (affecting demand, supply chains, delivery times, and prices).
Inflationary pressures on personnel expenses and logistics costs.
Risks associated with acquisitions (availability of targets, timing, integration, personnel commitment, reaching targets).
Cyclical customer demand and short order books.
Dependence on principal relationships.
Difficulty defending sales margins due to downward pressure on end product prices and upward pressure on supply prices.
Personnel turnover.
Changes in trade agreements.
Financial risks (interest rate, currency, liquidity, credit, equity, and impairment).

Implemented cost-saving measures.
Focus on improving profitability of companies and reducing group indebtedness.
Organizational restructuring in Yleiselektroniikka and Baltic companies to react to weakened demand.
Organizational restructuring in Machinery's construction business and temporary personnel reductions in Muottikolmio.
Continued work to improve the efficiency of working capital.

Challenging market conditions due to the crisis in Ukraine and the general development of the Finnish economy.
High indebtedness.
Investment-driven demand and concentration of the company portfolio on the Finnish market.
Postponement of significant orders to 2025.