Slide 1: Continued improvement in results - Back to Growth Plan progressing well
Continued improvement in results - Back to Growth Plan progressing well Q125 Webcast | april 29, 2025
Slide 2: Agenda
AGENDA • q125 highlights • q125 review • Back to growth -plan • Q&A
Slide 3: Q125 highlights
Q125 | highlights Continued improvement in results, Back to Growth Plan is progressing well Sales 34m€ Operational Ebit 1.3m€ Order books grew Organic Growth +4% vs. q124 Increase of +128% vs. q124 Compared with q424 & New sizeable orders in putzmeister business in Q225 Gross margin 32% (29% in q124
Slide 4: Q125 trending in the right direction
Q125 | trending in the right direction Two consecutive quarters with growth - Modest performance compared with potential of the portfolio Operational ebit (€) & ebit%, r12 Roce% net debt/operational ebitda 3.3X 5.9 % 3.1X 5.6 % 5.5 % 5.5 % 5.4 % 5.7 % 5.6 % 5.7 % 5.2 % 5.5 % 5.2 % 5.1 % 5.6 % 2.8X 2
Slide 5: Q125 two consecutive quarters with sales growth
q125 | two consecutive quarters with sales growth Organic growth of 4% in q125 - market conditions improved somewhat Commentary 200 Sales, R12 Sales +4% or 1.4m€ vs. Q124 180 ▪ Market conditions improved toward 170 172 169 the end of the quarter 160 161 160 155 153 144 Acquisitions & exits 140 135 1
Slide 6: Q125 gross margins have improved by 5% in 2 years
q125 | gross margins have improved by 5% in 2-years Acquisitions & ‘stop & accelerate’ actions have improved gross margin profile significantly Commentary 35 % Gross Margin%, R12 EBIT%, R12 33 % 32 % 32 % Gross margins up from 29% in Q124 31 % 31 % 31 % to 32% in Q125 30 % 30 % 30 % 30 % 29 % ▪ Impa
Slide 7: Q125 moderate cash flow as expected
q125 | moderate cash flow as expected Operative net cash flow of 0.3m€ due to increase in working capital Commentary ▪ Trade Working Capital increased by 229 % c. 1m€ to 26.5m€ 180 % ▪ Target to maintain working capital 151 % 156 % close to current levels considering 129 % 17.6 growth opportunities
Slide 8: Q125 returns on the rise thanks to profit growth
Q125 | returns on the rise thanks to profit growth Profit growth and well-managed working capital resulting in upward trend in returns Commentary 70 % ROTWC%, R12 Electronics BA ▪ Improvement of Return on Trade 60 % 57 % Working Capital from 52% in Q424 to 57% in Q125 52 % 50 % 50 % ▪ Strong perform
Slide 9: Significant improvement potential as market conditions improve
Q125 | Significant improvement potential as market conditions improve Tensions in trade- and geopolitics create uncertainty 1 2 3 A well-functioning firm Potential of the portfolio order books grew significant improvement potential in a increase of order books from q424 – stronger demand environment
Slide 10: Agenda
AGENDA • q125 highlights • q125 review • Back to growth -plan • Q&A
Slide 11: Q125 growth of sales & profits
Q125 | growth of sales & profits Two consecutive quarters with growth – seasonally slow q1 Net sales * Operational ebit & ebit% * +4% +128% 6.9 % 7.1 % 7.0 % 5.8 % 6.2 % 5.6 % 5.6 % 5.3 % 4.9 % 5.1 % 3.6 % 3.9 % 1.8 % 43.3 45.0 40.4 41.0 42.3 41.0 39.2 3.0 2.9 37.1 32.6 33.8 34.0 31.7 2.4 2.4 2.4 28
Slide 12: Q125 Electronics
Q125 | Electronics Operational ebit doubled from 0.5m€ in q124 to 1.0m€ in q125 Comments – q1 2025 Net sales and operational ebit% ▪ Continued strong performance in Q1 with 10% Q-on-Q sales growth ▪ Operational EBIT improved significantly (+96%) to 1.0m€ ▪ Working capital management successful, ROTW
Slide 13: Q125 Technical trade
Q125 | Technical trade Decent profit growth in a challenging environment. Operational EBIT at 4.8% & rotwc at 25.0% Comments – q1 2025 Net sales and operational ebit% ▪ Sales flat vs. Q1/24, better margins and cost reductions leading to improved profitability ▪ Working capital management successful
Slide 14: Q125 debt facilities
q125 | debt facilities the old hybrid (c. 4m€) & first interests of the new hybrid paid in Q125 New acquisitions to be funded with M&A facility with limited impact on liquidity debt maturity structure, total facilities (incl. unused), m€ Total facilities of 69.0m€ of which 53.8m€ used (q125)*** * 4.
Slide 15: Agenda
AGENDA • q125 highlights • q125 review • Back to growth -plan • Q&A
Slide 16: How to return back to growth?
How to return back to growth? Well prepared for significant earnings improvement once market conditions improve Current state Strategic targets 4. Market conditions 20% Rebound of finland & Baltics 15% annual average operational minimum annual average EBIT growth (2020-2024) operational EBIT growth
Slide 17: YE RS: creation of a growth platform
Ye rs| creation of a growth platform Continuation of a 30-year partnership with RS Group Commentary Transaction overview Transaction ▪ Boreo to acquire Elfa Distrelec sales activities in Finland & Baltics from RS ▪ Upon completion, plan to create a high-performing, modern & agile ‘YE RS’ Deal signed
Slide 18: Spetselektroodi: great entrepreneurial firm
spetselektroodi| great entrepreneurial firm Add-on acquisition of a distributor of premium welding machine and automation products Company overview Transaction overview Transaction ▪ Boreo to acquire Spetselektroodi from Indrek Ranne ▪ Karl Laasik, current Head of the Company’s Technical Support, ap
Slide 19: Agenda
AGENDA • q125 highlights • q125 review • Back to growth -plan • Q&A
Slide 20: yy yj
We, yy yj Wa e “
Slide 21: Grow & prosper
BOREO GROW & PROSPER
Slide 22: A long-term owner of great entrepreneurial companies
A long-term owner of great entrepreneurial companies 134m€ 6.8m€ (5.1%) 325 NET SALES 2024 Operational ebit 2024 Employees 22 companies 7.9% 3.1x Return on capital employed Net debt / operational EbitDA 2024 Q1 2025 Map excluding USA 22
Slide 23: Diversified industrial portfolio in 7 countries
Diversified industrial portfolio in 7 countries Electronics Technical trade 58M€ 2024 Sales 126 Professionals 76M€ 194 2024 Sales Professionals 7 Markets 3 Markets Net sales adjusted for continued operations New organizational structure effective as of 1.1.2024 23
Slide 24: Capable & committed leadership in a decentralized structure
Capable & committed leadership in a decentralized structure Simon Hallqvist, Camilla Grönholm, Jouni grönroos, Ralf Holmlund, Noora neilimo- Jussi vanhanen, Chairman chair of Remco chair of audit board member kontio, board board member committee member Board of Directors 1,913,433 shares 1,277 share
Slide 25: Boreo's business model
Boreo’s business model We own and acquire Great entrepreneurial companies with strong profits and cash flows Ultimate objective is We enable earnings growth by Sustainable profit Supporting & generation coaching in the long-term our companies & developing people we Re-invest capital with attractive
Slide 26: Our acquisition & ownership criteria
Our acquisition & ownership CRITERIA asset light industrial businesses with strong cash generation, proven track record and a management fit with boreo culture Industrial characteristics financial characteristics organisational characteristics investment characteristics B2b high Cash conversion Stro
Slide 27: Our philosophy – Sustainable long-term profit generation
Our philosophy – Sustainable long-term profit generation Decentralization Capital allocation Culture of ownership and release of Focus on earnings and capital efficiency entrepreneurial energy Broad universe of investment Aligned interest of shareholders and opportunities – discipline in capital emp
Slide 28: What's in it for the companies?
What’s in it for the companies? A Long-term owner Leadership development • Stability • Best practice sharing • Continuation • Support from ’Coaches’ • • MD peer group • Credibility Access to funding boreo companies • Boreo Academy Balance P&L sheet Business development Personnel • Board of Directors
Slide 29: Focus on earnings growth and return on capital
Focus on earnings growth and return on capital Updated long-term strategic financial targets to better reflect shareholder value creation minimum annual minimum net debt / average operational ROCE operational EBITDA EBIT growth 15% 15% 2-3x Dividend policy Target to annually increase dividend per sh
Slide 30: Grow & prosper
BOREO GROW & PROSPER