Strong Cabin Alliance
Fortaco Group has acquired MauserCABS to reinforce its position as one of the leading vehicle cabin technology and manufacturing business partners in Europe.
MauserCABS is a high-precision manufacturer of safety cabins operating in international markets. It employs more than 300 people at a modern factory located in Breitenau, Austria.
Acquisition will expand Fortaco’s geographical footprint and broaden our cabin offerings in Europe, India and the US. With Buisard, MauserCABS, and Tata AutoComp, we are one of the leading and most experienced operator cabin manufacturers in Europe and India. Together we offer high quality vehicle cabins, technology development, and a high degree of automated manufacturing to the off-highway equipment OEMs.
”MauserCABS is a highly recognized cabin manufacturer with spare parts aftermarket services and technical engineering support. I am excited to start working with the experienced MauserCABS team”, says Lars Hellberg, President & CEO for Fortaco Group.
Read the press release here
Correction: Fortaco Group Holdco Oyj’s Interim Review January-March 2023 (Unaudited, IFRS): Net sales and profitability developing positively during the period
Fortaco Group Holdco Oyj | 29.5.2023 16:30 EEST | Stock Exchange Release
Correction to the English translation of the Stock Exchange Release 29.5.2023 14:00 EEST where Fortaco Group Holdco Oyj released their Interim Review.
The sentence, where company announced it has signed an agreement on the acquisition of the entire share capital of Walter Mauser GmbH, has been corrected. Also, Kimmo Raunio’s title has been corrected. Attachment to Finnish version has been added.
The original release containing the corrections is presented below:
Fortaco Group Holdco Oyj Stock Exchange Release 29.5.2023 at 2.00 p.m.
This release is a summary of Fortaco Group Holdco Oyj’s Interim Review January-March 2023. The full release is attached and available on our website at http://investors.fortacogroup.com.
Figures in parentheses refer to the corresponding period of the previous year, unless otherwise stated.
Highlights: January-March 2023
- Net sales was EUR 96.1 million (comparable net sales growth 31.1%).
- Recurring EBITDA was EUR 8.2 million (8.5% of net sales, comparable growth in recurring EBITDA 55.9%). EBITDA was EUR 7.4 million (7.7% of net sales).
- Recurring EBITA was EUR 5.7 million (5.9% of net sales, comparable growth in recurring EBITA 98.3%). EBITA was EUR 4.9 milllion (5.1% of net sales).
- Net debt was EUR 51.3 million and net debt to comparable recurring EBITDA 1.9x.
- Order intake during the review was good, with the order book at the end of the review period growing moderately compared to the end of 2022.
- Profitability was supported by price increases corresponding to high cost inflation. The price increases were made effective during the review period.
- During the review period Fortaco established Zero Emission Solutions business, which offers new solutions and services to the customers.
- Capacity expansion investment in Holic, Slovakia was progressing as planned.
Key Figures
Fortaco Group key financials
| MEUR, IFRS | 1-3/23 | 1-3/22 | Change % | 1-12/22** | Last 12 months |
| Reported | |||||
| Net sales | 96.1 | N/A | N/A | 94.9 | N/A |
| EBITDA | 7.4 | N/A | N/A | 0.6 | N/A |
| % of net sales | 7.7% | N/A | N/A | 0.7% | N/A |
| EBITA | 4.9 | N/A | N/A | -2.0 | N/A |
| % of net sales | 5.1% | N/A | N/A | -2.1% | N/A |
| Non-recurring items | 0.8 | N/A | N/A | 4.5 | N/A |
| Recurring EBITDA | 8.2 | N/A | N/A | 5.1 | N/A |
| % of net sales | 8.5% | N/A | N/A | 5.4% | N/A |
| Recurring EBITA | 5.7 | N/A | N/A | 2.5 | N/A |
| % of net sales | 5.9% | N/A | N/A | 2.6% | N/A |
| Comparable* | |||||
| Comparable net sales | 96.1 | 73.3 | 31.1% | 332.4 | 355.3 |
| Comparable EBITDA | 7.4 | 4.9 | 50.3% | 22.8 | 25.3 |
| % of net sales | 7.7% | 6.7% | 6.9% | 7.1% | |
| Comparable EBITA | 4.9 | 2.5 | 92.9% | 13.0 | 15.3 |
| % of net sales | 5.1% | 3.4% | 3.9% | 4.3% | |
| Comparable non-recurring items | 0.8 | 0.3 | 138.6% | 1.8 | 2.3 |
| Comparable recurring EBITDA | 8.2 | 5.3 | 55.9% | 24.7 | 27.6 |
| % of net sales | 8.5% | 7.2% | 7.4% | 7.8% | |
| Recurring EBITA | 5.7 | 2.9 | 98.3% | 14.8 | 17.6 |
| % of net sales | 5.9% | 3.9% | 4.5% | 5.0% | |
| Balance sheet ratios | |||||
| Return on Capital Employed % (ROCE) | 15.4% | N/A | N/A | 10.1% | |
| Equity ratio, % | 24.4% | N/A | N/A | 24.3% | |
| Net debt | 51.3 | N/A | N/A | 52.0 | |
| Net gearing | 89.2% | N/A | N/A | 93.0% | |
| Net debt / comparable recurring EBITDA | 1.9x | N/A | N/A | 2.1x |
*) Figures are referring to the comparable financials of the Group,
which are based on the full year 2022 financials of the acquired Fortaco Group.
**) Period 12.4.2022-31.12.2022 for reported figures
Guidance for 2023
For 2023, net sales are expected to be higher than EUR 350 million (comparable net sales in 2022: EUR 332.4 million) and recurring EBITDA higher than comparable recurring EBITDA in 2022 (comparable recurring EBITDA in 2022: EUR 24.7 million).
Lars Hellberg, President & CEO comments
The first quarter of 2023 remained positive for us. Our customers’ good order intake was reflected in our business, which continued on a healthy level throughout the first quarter. Recently, we managed to win new customers and products in, for example, the defense industry. New businesses are now in the implementation phase, contributing to the increasing net sales outlook in 2023. Our net sales also increased by approximately 30 percent, compared to the same period in 2022.
At the end of the last year, we managed to transfer essentially all extraordinary cost increases related to energy and salary to our customer contracts. We also continued the geographical regionalization of our business. Our customers are increasingly focused on Europe, Asia, and the United States. Our strategic ambition is to actively increase offerings to the US market, and therefore we have assigned a specific business development team to explore our GoWest strategy.
Among our customer segments, the mining industry continued to be strong, but the marine, offshore and energy markets remained at a disappointingly low level. Demand in the container handling, forestry, and material handling segments was at a stable level. We see strong growth opportunities, especially in the defense sector.
Our new business area, Zero Emission Solutions, focuses, among other things, on the development of fossil-free steel applications and components for customers. It also offers solutions for integrated thermal management, both for the air conditioning of operator cabins and the charging of electric vehicle batteries. In addition, we are exploring opportunities for charging on-grid, as well as off-grid solutions, in close cooperation with professional OEMs (Original Equipment Manufacturers).
Our investment in additional capacity at Business Site Holic in Slovakia, is progressing at full speed. Our partnership with Buisard Cabins is maturing and more business opportunities are in the pipeline. The SAP S4/Hana -project is progressing as planned. The definition phase of “One Fortaco” business processes will be completed in the third quarter, and the first planned deployment will take place in January 2024.
We employ almost 2,500 people in eight different countries. The availability of skilled labor is currently challenging, and there is a shortage of welders and machine operators in particular. During the current year, we will strengthen our competence in terms of sustainable development in order to enhance measures to reduce global warming by 1.5 degrees.
Despite uncertainties in the global situation, we have a healthy business outlook for 2023. Our strategy is to grow both organically and inorganically and continue offering added value products and solutions to our customers internationally.
Events after the reporting period
Fortaco Group Holdco Oyj has on 22 July 2022 issued Senior Secured Bonds with a principal amount of EUR 75 million. In accordance with the Terms and Conditions of the Bonds, the Company has applied for the Bonds to be listed on the corporate bonds list of Nasdaq Helsinki Ltd. The Finnish Financial Supervisory Authority has on 23 May 2023 approved the Listing Prospectus of the Bonds and trading on the Bonds has commenced on 25 May 2023.
On 26 May 2023 Fortaco announced that a fully-owned affiliate of Fortaco Group Holdco Oyj has signed an agreement on the acquisition of the entire share capital of Walter Mauser GmbH, a high-precision manufacturer of safety cabins operating in international markets. The closing of the acquisition is estimated to take place during Q3 2023, provided that certain customary conditions for acquisition are met, including obtaining of the financing and necessary regulatory approvals. Mauser CABS will be reported as a part of Fortaco Group from the moment of closing.
Financial information
The company publishes the Half-Year Review for January-June 2023 on Monday 28 August 2023.
Fortaco Group Holdco Oyj
Board of Directors
Further information
Lars Hellberg, President & CEO, 358 40 572 9488, lars.hellbergfortacogroup.com
Kimmo Raunio, Senior Executive Vice President & CFO, +358 40 593 6854, kimmo.raunio@fortacogroup.com
Distribution
Nasdaq Helsinki Oy
Principal media
http://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 are supporting our global customers. www.fortacogroup.com
Categories: Stock exchange releases
Sails up for Nor-Shipping
Fortaco Team will be attending Nor-Shipping exhibition in Oslo on 6-9 June 2023.
It is an international event in the centre of oceans, where the maritime and ocean industries meet in every two years. An arena to connect and collaborate, to create deals. The ocean business needs to work together to tackle the big issues of our time - to transform challenges into opportunities.
The Fortaco team will present our growing footprint and services. We are a dedicated business partner to the leading OEMs within the marine industry, providing engineering, assemblies, steel fabricated components, and crane cabins for demanding end-user conditions. Our Business Site Gruza is specialized to provide manufacturing and assembly services for winches, davits, deck cranes, and A-cranes.
Fortaco is your choice for deck machinery when safety and high quality are the top priorities.
Meet our crew at Nor-Shipping and come to hear how we could serve your business. You can find us at booth D04-40.
Read more about the event: https://nor-shipping.com
Factory Extension Sneak Peek
Fortaco Holíč factory extension is on its way.
This exciting project contains an expansion of existing factory in Slovakia, enabling us to upgrade our services.
The sleek, modern, and functional hall will be equipped with the latest technology and equipment to ensure our manufacturing capabilities will meet the increased demands.
Sustainability and energy efficiency have been taken into the focus, and the building has an environmentally friendly design with a minimalistic aesthetics.
Our production capacity and efficiency in Holíč will be increased along with this expansion that is strengthening our dedication to offer high-quality products and services to our customers.
Beyond Tier 1: Assembly outsourcing in the off-highway industry
Outsourcing is a great choice when a customer has a big-picture strategic interest in their approach to production. As technology is developing and products offered with four or more types of engines (diesel, hydrogen, hybrid, electric), it rarely makes sense for an OEM to invest in the capability to manufacture all those types.
How can assembly outsourcing impact a capital requirement? How did Mercedes get better painting quality for their automobiles by Saab?
Find out by downloading our white paper.
Stronger than Steel
Women and their visions are needed in our industry. ????
The industry offers them great opportunities to build careers, develop skills and expertise, while using their strengths. There are many more women working in this business than usually assumed.
We interviewed some of the great ladies in our team and asked what are the most favorable and valued themes in their work. ????
Things like innovation, creativity, development, learning, support, flexibility, motivation, and engagement were brought up – all are words that can also be related to our dedicated team.
Fortaco wishes an excellent International Women’s Day to every woman working with us, reading this post, and trusting tomorrow and their visions. ???? ????
Fortaco’s preliminary financials for 2022 and outlook for 2023
Fortaco Group Holdco Plc[1] (“Fortaco”), the leading strategic partner to the heavy off-highway equipment and marine industries, announces preliminary financials for the fiscal year ended 31 December 2022 along with an outlook for 2023, including selected financial and operating results.
In 2022, Fortaco recorded net sales of EUR 332.4 million, recurring EBITDA of EUR 24.7 million and a net debt of EUR 52.0 million. This corresponds to more than 40% YoY growth in net sales.
Read the press release here.
[1] Fortaco Group Holdco Plc acquired 100% of the shares in Fortaco Group Oy on 30 September 2022, after which Fortaco Group Oy and its subsidiaries were consolidated under Fortaco Group Holdco Plc. Consequently, Fortaco Group Holdco Plc financials are not representative of the Group’s performance, and thus the figures in the press release are presented on a full pro forma basis. Figures are in accordance with IFRS standard, unless stated otherwise.
Fortaco Technology is now Zero Emission Solutions
"When starting my first job in Isuzu Motors in Japan as a diesel engine control system engineer, I was excited to develop solutions that reduce CO2 and other emissions.
Today, the ambition level is even higher - together with my colleagues in Fortaco we are developing zero emission solutions." - Rafal Sornek
Fortaco is active with the green environmental transformation and one of our strategic targets is to transform the off-highway equipment industry into emission free. To prioritize and focus on this transition, Fortaco’s Technology unit has been transformed into Zero Emission Solutions to highlight our strategic direction and develop future business offerings. The main focus areas are: fossil-free steel, lightweight structures, circular economy, and e-mobility.
Scope
Development of technologies is a focus area for Zero Emission Solutions, the main three areas being:
SystemTech: research and development of new systems related to operator cabins and thermal management.
ManuTech: research and development of new production technologies as well as design of highly efficient production lines.
SteelTech: research and development with a focus on lightweight structures.
In addition, Zero Emission Solutions explore newly emerging business areas related to the electrification of off-highway equipment industry.
Organization
The Zero Emission Solutions unit is led by Rafal Sornek.
- SystemTech is led by Aki Komulainen.
- ManuTech is led by Zbigniew Zych.
- SteelTech is led by Rafal Sornek (acting role).
CabTech organization is transferred to Business Site Kurikka and Holic:
- CabTech Kurikka is led by Markus Jouppila.
- CabTech Holic is led by Daniel Pseno.
Fortaco considers the transformation of off-highway equipment industry into emission free as one of its key future targets.
Rafal Sornek
Senior Vice President
Zero Emission Solutions
Season's Greetings
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Team Fortaco would like to express thanks to our customers, business partners and colleagues for the excellent cooperation throughout the year.
We wish you a Peaceful Christmas time with families and friends and a Successful Year 2023. ????
Instead of giving Christmas presents, Fortaco has made a donation to charity.
Fortaco expands vehicle cabin capacity in Holic factory Slovakia
Fortaco has started a capacity extension project at Business Site Holic in Slovakia.
The investment will consist of a 4.000 m2 factory extension, an increased manpower of 90+ people and new equipment. The construction work will be started in Q1-2023 and it is scheduled to be finalized in Q4-2024.
“I am happy to announce the start of factory extension after intensive preparations. It builds a critical cornerstone to the current and future growth of FORTACO BUISARD CABINS -business. The new factory is a critical platform to further support our customers by offering vehicle cabin assembly and production capacity based on a high degree of automation and strong operational excellence”, says Lars Hellberg, President & CEO of Fortaco Group.
Fortaco’s factory in Holic, Slovakia offers vehicle cabin manufacturing capabilities to the world’s leading OEM customers, including design and engineering, and aftermarket services. FORTACO BUISARD CABINS’ footprint comprises of three modern factories with the best-in-class equipment in Sablé-sur-Sarthe France, Kurikka Finland, and Holic Slovakia.
Fortaco Group and Buisard Cabins established a strategic alliance in December 2021.
Read the press release here