News

Fortaco Group’s Annual Report 2023 has been published

Fortaco Group has published its Annual Report for 2023. The Annual Report includes the Report by the Board of Directors, the Financial Statements, the Auditor’s Report and the Corporate Governance Statement. The Annual Report is attached to this release and available to read and download on the company’s website:https://investors.fortacogroup.com/reports/.

Fortaco Group’s Financial Statements in accordance with European Single Electronic Format (ESEF) reporting requirements are published in Finnish. In line with the ESEF requirements, the primary statements and notes to the financial statements have been labelled with XBRL tags. The audit firm Ernst & Young Oy has provided an independent auditor’s reasonable assurance report on Fortaco Group Holdco Plc’s ESEF Financial Statements in Finnish in accordance with ISAE 3000 (Revised).

Further Information

Lars Hellberg, President & CEO
+358 40 572 9488
lars.hellberg@fortacogroup.com

Kimmo Raunio, Senior Executive Vice President & CFO
+358 40 593 6854
kimmo.raunio@fortacogroup.com

Distribution

Nasdaq Helsinki Oy
Financial Supervisory Authority
Main media
Web: investors.fortacogroup.com

Fortaco Group

Fortaco is the leading strategic partner in Europe to the heavy off-highway equipment and marine industries, providing premium offerings, like zero-emission solutions and technology, vehicle cabins, steel fabrications, and assemblies. Fortaco Group has operations in multiple European and Asian business sites and technology hubs, which support our global customers. www.fortacogroup.com.

Categories: Stock exchange releases

by Fortaco

Inside information: Fortaco Group successfully issues subsequent bonds in an amount of EUR 25.0 million

NOT FOR DISTRIBUTION IN OR INTO OR TO ANY PERSON LOCATED OR RESIDENT IN CANADA, AUSTRALIA, HONG KONG, ITALY, NEW ZEALAND, THE REPUBLIC OF SOUTH AFRICA, JAPAN, THE REPUBLIC OF CYPRUS, THE UNITED KINGDOM OR THE UNITED STATES (OR TO ANY U.S. PERSON), OR TO ANY OTHER JURISDICTION IN WHICH SUCH DISTRIBUTION WOULD BE UNLAWFUL, EXCEPT AS SET FORTH HEREIN AND PURSUANT TO APPROPRIATE EXEMPTIONS UNDER THE LAWS OF ANY SUCH JURISDICTION.

Fortaco Group Holdco Oyj (the “Group”) has, following a bookbuilding process, successfully placed a subsequent bond issue (the “Subsequent Bond Issue” or the “Subsequent Bonds”) in an amount of EUR 25.0 million under the Group’s existing senior secured floating rate bond loan 2022/2027 with ISIN NO0012547274 (the “Bonds”). Following the Subsequent Bond Issue, the outstanding amount under the Bonds will be EUR 127.5 million. The transaction was met with strong demand from primarily new and existing institutional investors based in the Nordics and continental Europe and was placed at a price of 100.25% of par.

With reference to the press release issued on 8 March 2024, proceeds from the Subsequent Bond Issue will be applied towards financing general corporate purposes (including acquisitions and capital expenditure). In connection with the Subsequent Bond Issue, the equity of the Group is planned to be strengthened with EUR 10.0 million, by way of either unconditional shareholders' contribution or shareholder loans.

Settlement of the Subsequent Bond Issue is expected to be on or about 26 March 2024. In accordance with the terms and conditions of the Bonds, an application will be made for the Subsequent Bonds to be admitted to trading on the corporate bonds list of Nasdaq Helsinki Ltd.

Pareto Securities AB acted as sole bookrunner and Roschier Advokatbyrå and Gernandt & Danielsson acted as legal advisors in connection with the Subsequent Bond Issue.

For further information about the Group:

Lars Hellberg

President & CEO, Fortaco Group

+358 40572 9488

lars.hellberg@fortacogroup.com

For further information about the bond issue:

Markus Wirenhammar

Head of Investment Banking, Pareto Securities AB

+46 70 892 51 86

markus.wirenhammar@paretosec.com

Disclaimer

General

This release is for information purposes only and is not to be construed as an offer to purchase or sell or a solicitation of an offer to purchase or sell with respect to any securities of the Group. The distribution of this release and the related material concerning the issuance of the Bonds may, in certain jurisdictions, be restricted by law. No actions have been taken to register or qualify the Bonds, or otherwise to permit a public offering of the Bonds, in any jurisdiction. Any offering material or documentation related to the Bonds may be received only in compliance with applicable exemptions or restrictions. Persons into whose possession this release or any such offering material or documentation may come are required to inform themselves of and observe all such restrictions. This release and any such offering material or documentation may not be distributed or published in any country or jurisdiction if to do so would constitute a violation of the relevant laws of such jurisdiction or would require actions under the laws of a state or jurisdiction. In particular, this release and any such offering material or documentation may not be distributed directly or indirectly, to or into Canada, Australia, Hong Kong, Italy, New Zealand, the Republic of South Africa, Japan, the Republic of Cyprus, the United Kingdom or the United States (or to any U.S. person (as defined below), or to any other jurisdiction in which such distribution would be unlawful, except as set forth herein and pursuant to appropriate exemptions under the laws of any such jurisdiction.

Neither the Group nor the sole bookrunner or any of their representatives have taken any actions to allow the distribution of this release in any jurisdiction where any action would be required for such purposes. The distribution of this release and any purchase of or application/subscription for Bonds or other securities of the Group may be restricted by law in certain jurisdictions, and persons into whose possession this release comes should inform themselves about, and observe, any such restriction. Any failure to comply with such restrictions may constitute a violation of the applicable securities laws of any such jurisdiction. Neither the Group nor the sole bookrunner has authorized any offer to the public of securities, or has undertaken or plans to undertake any action to make an offer of securities to the public requiring the publication of an offering prospectus, in any member state of the European Economic Area and this release is not a prospectus for purposes of Regulation (EU) 2017/1129, as amended.

United Kingdom

In the event that this release is distributed in the United Kingdom, it shall be directed only at persons who are either (a) "investment professionals" for the purposes of Article 19(5) of the UK Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "Order"), (b) high net worth companies, unincorporated associations and other persons to whom it may lawfully be communicated in accordance with Article 49(2)(a) to (d) of the Order, or (c) persons to whom an invitation or inducement to engage in investment activity (within the meaning of Section 21 of the Financial Services and Markets Act 2000) in connection with the issue or sale of any Bonds may otherwise lawfully be communicated or caused to be communicated (all such persons together being referred to as "Relevant Persons"). Any investment or investment activity to which this release relates will be available only to Relevant Persons and will be engaged in only with Relevant Persons. This release is not a prospectus for the purposes of Section 85(1) of the UK Financial Services and Markets Act 2000. Accordingly, this release has not been approved as a prospectus by the Financial Conduct Authority (the "FCA") under Section 87A of the Financial Services and Markets Act 2000 and has not been filed with the FCA pursuant to the UK Prospectus Rules nor has it been approved by a person authorized under the Financial Services and Markets Act 2000.

United States

This release does not constitute or form part of an offer or solicitation to purchase or subscribe for securities in the United States. In the event that this release is distributed in the United States, it shall be directed only at persons who are "qualified institutional buyers" ("QIBs") as defined in Rule 144A ("Rule 144A") promulgated under the U.S. Securities Act of 1933, as amended (the "Securities Act") in reliance upon Rule 144A under the Securities Act. The Bonds have not been and will not be registered under the Securities Act, or with any securities regulatory authority of any state or other jurisdiction in the United States. Accordingly, the Bonds may not be offered, sold (directly or indirectly), delivered or otherwise transferred within or into the United States or to, or for the account or benefit of, U.S. Persons, absent registration or under an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. The Bonds are being offered and sold only (i) outside the United States to persons other than U.S. persons (which shall include dealers or other professional fiduciaries in the United States acting on a discretionary basis for non-U.S. beneficial owners (other than an estate or trust)) in reliance upon Regulation S under the Securities Act ("Regulation S") and (ii) in the United States to QIBs in reliance upon Rule 144A under the Securities Act. As used herein, the terms "United States" and "U.S. person" have the meanings as given to them in Rule 902 of Regulation S under the Securities Act.

Categories: Stock exchange releases

by Fortaco

Inside information: Fortaco Group investigates the possibility to issue subsequent bonds under its existing bond framework

NOT FOR DISTRIBUTION IN OR INTO OR TO ANY PERSON LOCATED OR RESIDENT IN CANADA, AUSTRALIA, HONG KONG, ITALY, NEW ZEALAND, THE REPUBLIC OF SOUTH AFRICA, JAPAN, THE REPUBLIC OF CYPRUS, THE UNITED KINGDOM OR THE UNITED STATES (OR TO ANY U.S. PERSON), OR TO ANY OTHER JURISDICTION IN WHICH SUCH DISTRIBUTION WOULD BE UNLAWFUL, EXCEPT AS SET FORTH HEREIN AND PURSUANT TO APPROPRIATE EXEMPTIONS UNDER THE LAWS OF ANY SUCH JURISDICTION.

Fortaco Group Holdco Oyj (the “Group”) has mandated Pareto Securities AB as sole bookrunner (the “Sole Bookrunner“) to arrange a series of fixed income investor meetings commencing on 11 March 2024 to investigate the possibility to issue subsequent senior secured bonds of approximately EUR 20.0 million under the Group’s bond loan 2022/2027 with ISIN NO0012547274 (the “Bonds”). Subject to inter alia prevailing market conditions, a capital markets transaction may follow. The proceeds from a potential transaction will be used towards, among other things, financing general corporate purposes (including capital expenditure and acquisitions) of the Group.

For further information

Lars Hellberg

+358 40572 9488

lars.hellberg@fortacogroup.com

Disclaimer

General

This release is for information purposes only and is not to be construed as an offer to purchase or sell or a solicitation of an offer to purchase or sell with respect to any securities of the Group. The distribution of this release and the related material concerning the issuance of the Bonds may, in certain jurisdictions, be restricted by law. No actions have been taken to register or qualify the Bonds, or otherwise to permit a public offering of the Bonds, in any jurisdiction. If the Group decides to proceed with the issue of the Bonds, any offering material or documentation related to the Bonds may be received only in compliance with applicable exemptions or restrictions. Persons into whose possession this release or any such offering material or documentation may come are required to inform themselves of and observe all such restrictions. This release and any such offering material or documentation may not be distributed or published in any country or jurisdiction if to do so would constitute a violation of the relevant laws of such jurisdiction or would require actions under the laws of a state or jurisdiction. In particular, this release and any such offering material or documentation may not be distributed directly or indirectly, to or into Canada, Australia, Hong Kong, Italy, New Zealand, the Republic of South Africa, Japan, the Republic of Cyprus, the United Kingdom or the United States (or to any U.S. person (as defined below), or to any other jurisdiction in which such distribution would be unlawful, except as set forth herein and pursuant to appropriate exemptions under the laws of any such jurisdiction.

Neither the Group nor the Sole Bookrunner or any of their representatives have taken any actions to allow the distribution of this release in any jurisdiction where any action would be required for such purposes. The distribution of this release and any purchase of or application/subscription for Bonds or other securities of the Group may be restricted by law in certain jurisdictions, and persons into whose possession this release comes should inform themselves about, and observe, any such restriction. Any failure to comply with such restrictions may constitute a violation of the applicable securities laws of any such jurisdiction. Neither the Group nor the Sole Bookrunner has authorized any offer to the public of securities, or has undertaken or plans to undertake any action to make an offer of securities to the public requiring the publication of an offering prospectus, in any member state of the European Economic Area and this release is not a prospectus for purposes of Regulation (EU) 2017/1129, as amended.

United Kingdom

In the event that this release is distributed in the United Kingdom, it shall be directed only at persons who are either (a) “investment professionals” for the purposes of Article 19(5) of the UK Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the “Order“), (b) high net worth companies, unincorporated associations and other persons to whom it may lawfully be communicated in accordance with Article 49(2)(a) to (d) of the Order, or (c) persons to whom an invitation or inducement to engage in investment activity (within the meaning of Section 21 of the Financial Services and Markets Act 2000) in connection with the issue or sale of any Bonds may otherwise lawfully be communicated or caused to be communicated (all such persons together being referred to as “Relevant Persons“). Any investment or investment activity to which this release relates will be available only to Relevant Persons and will be engaged in only with Relevant Persons. This release is not a prospectus for the purposes of Section 85(1) of the UK Financial Services and Markets Act 2000. Accordingly, this release has not been approved as a prospectus by the Financial Conduct Authority (the “FCA“) under Section 87A of the Financial Services and Markets Act 2000 and has not been filed with the FCA pursuant to the UK Prospectus Rules nor has it been approved by a person authorized under the Financial Services and Markets Act 2000.

United States

This release does not constitute or form part of an offer or solicitation to purchase or subscribe for securities in the United States. In the event that this release is distributed in the United States, it shall be directed only at persons who are “qualified institutional buyers” (“QIBs“) as defined in Rule 144A (“Rule 144A“) promulgated under the U.S. Securities Act of 1933, as amended (the “Securities Act“) in reliance upon Rule 144A under the Securities Act. The Bonds have not been and will not be registered under the Securities Act, or with any securities regulatory authority of any state or other jurisdiction in the United States. Accordingly, if the Group decides to proceed with the issue of the Bonds, the Bonds may not be offered, sold (directly or indirectly), delivered or otherwise transferred within or into the United States or to, or for the account or benefit of, U.S. Persons, absent registration or under an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. If the Group decides to proceed with the issue of the Bonds, the Bonds are being offered and sold only (i) outside the United States to persons other than U.S. persons (which shall include dealers or other professional fiduciaries in the United States acting on a discretionary basis for non-U.S. beneficial owners (other than an estate or trust)) in reliance upon Regulation S under the Securities Act (“Regulation S“) and (ii) in the United States to QIBs in reliance upon Rule 144A under the Securities Act. As used herein, the terms “United States” and “U.S. person” have the meanings as given to them in Rule 902 of Regulation S under the Securities Act.

Categories: Stock exchange releases

by Fortaco

Correction release: Fortaco Group Holdco Plc’s Financial Statement Bulletin January–December 2023 (Unaudited, IFRS): Core businesses performed as planned

Fortaco Group Holdco Plc's Stock Exchange Release published earlier today at 14:00 had an incorrect release category. This correction release has been published in the release category Financial Statement Release. The content of the release has not been changed in other respects.

This release is a summary of Fortaco Group Holdco Plc’s Financial Statement Bulletin January–December 2023. The full release is attached and available on our website at https://investors.fortacogroup.com.

Note for the reader: Fortaco Group was acquired by One Equity Partners in September 2022, and the new Fortaco Group Holdco was established. In this report, figures in parentheses refer to the corresponding period from the previous fiscal year and are based on the financials of the acquired Fortaco Group thus diverging from the officially consolidated financial statements of Fortaco Group Holdco for the year 2022. The same goes for comments and comparisons on 2022 financials. See more information in the Key figures section of this report. Formulas for calculating alternative performance metrics, along with their respective reconciliations, are outlined at the end of this report.

Highlights: October–December 2023

• Net sales was EUR 101.9 million (EUR 94.9 million), comparable net sales growth 7.3 per cent.
• Recurring EBITDA was EUR 5.0 million (EUR 5.2 million) and 4.9 per cent of net sales, comparable decline in recurring EBITDA 2.6 per cent. EBITDA was EUR 2.5 million (EUR 4.3 million) and 2.5 per cent of net sales.
• Recurring EBITA was EUR 1.1 million (EUR 2.6 million) and 1.1 per cent of net sales. EBITA was EUR -1.4 milllion (EUR 1.8 million) and -1.4 per cent of net sales.
• Core businesses performed as planned, and strategic acquisitions strengthened the overall position of the Group. Fortaco also remains committed to its strategic agenda and continuously evaluates attractive add-on acquisitions to further strengthen its offering. Such acquisitions could materialize in the near term and may be financed with a combination of equity and bond, each in an approximately similar amount.

• Profitability was negatively impacted by the losses incurred in the marine, energy, and heavy project business which have now been placed under strategic review.
• Despite softening market environment during H2 2023, Fortaco reached its recurring EBITDA target in 2023 before considering the impact from acquisitions, excluding the marine, energy, and heavy project business.
• Non-recurring items amounted to EUR 2.5 million. The amount of non-recurring items is driven by M&A activities, and the extensive business development as well as the performance improvement agenda currently being executed.

Highlights: January–December 2023

• Net sales was EUR 373.8 million (EUR 332.4 million), comparable net sales increase 12.5 per cent.
• Recurring EBITDA was EUR 24.4 million (EUR 24.7 million) and 6.5 per cent of net sales, comparable decline in recurring EBITDA 0.9 per cent. EBITDA was EUR 17.3 million (EUR 22.8 million) and 4.6 per cent of net sales. Group’s recurring EBITDA is including a loss of EUR 5.6 million originating from the energy, marine, and heavy project business. Recurring EBITDA, excluding this loss and before considering the impact of acquisitions was at a budgeted level. Hence, the profitability of the core business remained healthy in 2023.
• Recurring EBITA was EUR 12.3 million (EUR 14.8 million) and 3.3 per cent of net sales. EBITA was EUR 5.1 milllion (EUR 13.0 million) and 1.4 per cent of net sales. Recurring EBITA includes a loss of EUR 7.5 million originating from the marine, energy, and heavy project business.
• Non-recurring items amounted to EUR 7.1 million. The amount of non-recurring items is driven by M&A activities, business development, and other performance improvement programmes currently undertaken.
• Figures above are including the impact from the acquisition of MauserCABS and Buisard since the closing of transactions.
• 2023 pro forma key financials, including the full-year impact of MauserCABS and Buisard acquisitions, as if they were acquired on 1 January 2023, and excluding the loss-making energy, marine, and heavy project business, is net sales of EUR 420.4 million and recurring EBITDA of EUR 37.3 million, respectively.
• Net debt at year end 2023 was EUR 91.2 million and net debt to comparable recurring EBITDA 3.7x, including only partially the full-year EBITDA impact from acquisitions carried out in September and October. The pro forma leverage ratio, including MauserCABS and Buisard full year impact, as well as excluding the losses generated in the marine, energy, and heavy project business, is 2.4x. Equity ratio, including subordinated shareholder loan was 24.8 per cent.

The most important events during the financial year 2023

• Trading on the Fortaco’s Senior Secured Bonds commenced on 25 May 2023 on the corporate bonds list of Nasdaq Helsinki Ltd.
• Connected to the bond tap issue the trading with the additional bonds commenced in August 2023. After the tap issue, the total bond principal outstanding amounts to EUR 102.5 million, of which EUR 3.6 million is held by Fortaco Group itself reducing the balance sheet value of the loan.
• Fortaco Group acquired the entire share capital of Walter Mauser GmbH on 6 September 2023.
• On24 October 2023, Fortaco closed the acquisition of the remaining shares of Buisard.
• On 23 November 2023, Fortaco received a EUR 5 million shareholder loan from the sole shareholder of the company, OEP 81 B.V. The loan is subordinated to the bond financing. The funds have been used to repay in full a temporary local financing facility in MauserCABS, which was related to the acquisition carried out in September 2023.
• In November 2023, took place the inauguration of TATA AutoComp’s manufacturing facility for vehicle cabins based on Fortaco’s cabin design and manufacturing technology, and the ground-breaking ceremony of Fortaco’s new business site located in the Gliwice region, Poland.
• The capacity expansion projects in Narva, Estonia and Holic, Slovakia continued according to the schedule.
• Fortaco continued to have good position in the market and additional new business was secured both from the existing and new customers.
• The energy, marine, and heavy project businesses have been placed under strategic review, and Fortaco is targetting to find a structural solution for these entities.

Key figures

Fortaco Group key financials

In this report, figures in parentheses refer to the corresponding period from the previous fiscal year and are based on the financials of acquired Fortaco Group thus diverging from the officially consolidated financial statements of Fortaco Group Holdco for the year 2022. Same goes for comments and comparisons on 2022 financials. See more information at Key figures section of this report. Formulas for calculating alternative performance metrics, along with their respective reconciliations, are outlined at the end of this report.

The terms 'comparable net sales', 'comparable EBITDA', 'comparable EBITA', 'comparable recurring EBITDA', and 'comparable recurring EBITA' are utilized specifically in relation to the financial performance of Fortaco Group, which was acquired by Fortaco Group Holdco in 2022. Consequently, these metrics diverge from the officially consolidated financial statements of Fortaco Group Holdco for the year 2022.

For the avoidance of doubt, no adjustments for comparability have been applied to the financial data presented for the year 2023.
 

*) Period 12.4.2022-31.12.2022 for reported figures.

Financials include MauserCABS since September 2023 and Buisard since 24 October 2023.

Guidance for 2024

Fortaco does not provide guidance for the financial year 2024.

President & CEO Lars Hellberg’s comments

Fortaco continued its path of a consistent strategy during the period H2 under review. We further strengthened our position as a leading brand-independent strategic partner for heavy off-highway machine manufacturers in Europe and globally.

Uncertainties in the global operating environment continued to be reflected in our businesses during the period as the market continued to soften. Inflation, which has been at a high level for a long time, is now on a downward trend in Europe averaging 2.9 per cent at the end of December 2023 compared to 9.3 per cent at the end of 2022. The inflation rate was 5.9 per cent at the end of August and 3.6 per cent at the end of October. The profitability of the marine, energy, and heavy project businesses continued to be negatively impacted during the period due to low order intake and current customer strategic re-structuring. The cumulative net sales and EBITDA of the segment for full year 2023 amounted to EUR 40 million and -6 million, respectively. As announced 28 February 2024, Fortaco has started a strategic evaluation of its marine, energy, and heavy project businesses while these businesses are not considered strategic anymore. The evaluation is expected to be completed during H1 2024.

The acquisition of MauserCABS was completed as planned in the second half of the year, and the company is reported as part of Fortaco Group from 6 September 2023 onwards. MauserCABS is an Austrian company that manufactures high-quality safety cabins and operates on an international market. On 24 October 2023, Fortaco acquired the remaining part of shares and reached 100 per cent ownership of Buisard Cabins in France and the company has been reported as part of Fortaco Group since the acquisition date mentioned above.

In addition, we announced the inauguration of the Tata AutoComp manufacturing facility for state-of-the-art vehicle cabins in Pune, India. Together we will provide safe and ergonomic vehicle cabins to the Indian and international markets. Safety cabin manufacturing is made by Tata AutoComp and it is based on Fortaco’s cabin design and manufacturing technology. The product offering will include cabins for Indian agriculture, construction equipment, and other off-highway applications, and also exports in all volume categories.

Together, our premium brands of Buisard, Fortaco, MauserCABS, and Tata AutoComp offer high-quality vehicle cabins and technology development to off-highway machine manufacturers worldwide. Fortaco’s vehicle cabin business sites are located in Austria, Finland, France, Slovakia, and India. After these acquisitions, Fortaco is one of the leading players in the vehicle cabin business in the European market, having more capacity to expand its vehicle cabin offerings, technology, and manufacturing.

The ongoing project in Gliwice, Poland, with its aim to increase production capacity of steel fabricated components, is progressing as planned, though real estate works have been somewhat delayed. The capacity investment in Holic, Slovakia, is proceeding as planned. The capacity investment in Narva, Estonia, is also proceeding as planned.

Net sales grew by 7 per cent in Q4 2023, compared to the corresponding period in the previous year, driven by acquisitions of MauserCABS and Buisard, and totalled to EUR 102 (95) million. Recurring EBITDA was basically flat in Q4 2023, compared to the corresponding period in the previous year, and was EUR 5.0 (5.2) million, which included MauserCABS and Buisard since the closing. The profitability was negatively impacted by EBITDA losses generated in the marine, energy, and heavy project businesses.

During Q4 2023 we saw declining order intake driven by softening market demand. Depending on the market and customer segment, retailers and OEMs continue to adapt their warehouses after extraordinary supply chain issues in 2021/2022, as the distribution situation in the supply chain normalizes after the Covid pandemic. Along with the normalization of inventories in various industries a general weakening of customer demand has also been seen in several industry segments, due to inflation and high interest rates compared to recent years.

We see growth in customer needs in the US market, and we have won business from US customers to be delivered from our European operations. As earlier communicated, we plan to expand our business in this market in the near future. In accordance with our strategy, we plan to offer the same business portfolio in the US and Europe in the future.

The development of our internal processes continued in Q4 2023. The SAP S4/Hana project is progressing with a slight delay and the first deployment for two business sites is expected at the end of Q2 2024. In the review period, we have moved forward with our sustainability development plan to set the right targets, engagement, and actions. Sustainability is a focus of our operations, and we develop solutions together with our clients to reduce global warming, among other things.

Fortaco is seen as an attractive partner resulting in increased market share, new customers, and the introduction of new products. We have a strong new business order book to be implemented in 2024 and 2025. We have good opportunities to win new customers and increase our market share. We have a solid and established market position, quality performance, and an excellent delivery performance that make us an interesting strategic partner for both current and new customers.

We closely follow global-, local-, and several other indices, as well as our listed customers’ quarterly reports, and keep a constant dialogue with customers to anticipate development of the market. Additionally, Fortaco is executing capacity adjustments warranted by the changing demand situation. In H2 2023, Fortaco reduced its workforce by 12 per cent. The outlook for the near future is coloured by uncertainties in the global economy. In the longer term, the outlook is good for Fortaco. Fortaco’s diversified industry exposure provides protection from cyclicality. We have a good cash position, which enables sustainable business development.

I would like to thank our customers and business partners for your trust. Also, I would like to thank our employees for their dedication to the path towards achieving our common goals.

Events after the review period

On 28 February 2024, Fortaco announced the strategic evaluation of Fortaco’s marine, energy and heavy project business. These businesses representing less than 10 per cent of the net sales of Fortaco Group, including MauserCABS and Buisard, have contributed significant losses to Fortaco Group in 2023. The recurring EBITDA loss incurred in these businesses during full year 2023 is amounting EUR 6 million and EUR 2 million during Q4 2024. The evaluation is expected to be completed during H1 2024.

Financial reporting in 2024

Fortaco plans to publish its Annual Report 2023, which includes the report by the Board of Directors and the audited Financial Statements, during week 12 2024.

The Interim Review for January–March 2024 will be published on Monday, 27 May 2024, the Half-Year Report for January–June will be published on Monday, 26 August 2024 and the Interim Review for January–September will be published on Thursday, 28 November 2024.

Fortaco Group Holdco Plc
Board of Directors

Further information

Lars Hellberg, President & CEO

+358 40 572 9488

lars.hellberg@fortacogroup.com

Kimmo Raunio, Senior Executive Vice President & CFO

+358 40 593 6854

kimmo.raunio@fortacogroup.com

Distribution

Nasdaq Helsinki Oy

Financial Supervisory Authority

Main media

Web: investors.fortacogroup.com

Categories: Stock exchange releases

by Fortaco