Boreo Plc     Stock exchange release     14 December 2023 at 16:00 EET

Boreo announces changes in organizational structure and Management Team 

Boreo simplifies its organizational structure and combines the existing Technical Trade and Heavy Machines business areas to one new Technical Trade business area effective as of 1 January 2024.

‘The new organizational structure better aligns with our business model that is based on the acquisition and ownership of companies with ability to generate sustainable long-term earnings growth and strong cash flows. Our businesses within the current Heavy Machines business area are technical trade in nature and they possess the capability to generate good returns on capital. The opportunities for growth with high returns on capital, however, are limited in the industries the companies operate in. One combined Technical Trade business area improves our organization’s capability to grow and broadens our capital allocation opportunities in Finland, Sweden and in Estonia’, says Boreo CEO Kari Nerg.

In connection with this change, the number of members in the Group Management Team reduces from seven to six. Boreo has agreed with Janne Silvennoinen - SVP, Head of Technical Trade and member of the Group’s Management Team - of the termination of his employment. Jesse Petäjä, SVP M&A, and Richard Karlsson, SVP, Head of Heavy Machines, have been appointed as Co-Heads of the new Technical Trade business area. Mr. Petäjä continues to be responsible for the firm’s M&A function.

‘With the announced changes to the Management Team, we support the Group’s profit generation and further simplify our decentralized organizational structure. Janne has had a significant role in the early stages of Boreo and before that as the CEO of Yleiselektroniikka. I would like to express my gratitude for his years of service and wish him all the best for the future. I am convinced that the new business area will Grow & Prosper under Jesse’s and Richard’s command’, complements Boreo CEO Kari Nerg.

The new Technical Trade business area and organizational structure

The current Technical Trade and Heavy Machines business areas will be combined to one Technical Trade business area. Etelä-Suomen Kuriiripalvelu and Vesterbacka Transport, currently reported under Other operations, will also be combined into the new Technical Trade business area. As a result, the current Other operations -segment will in the future comprise only the parent company Boreo’s group functions and the segment will be renamed as ‘Group functions’. The changes become effective as of 1 January 2024 and the financial reporting will reflect the new organizational structure from the first quarter of 2024 onwards.

As of 1 January 2024, Boreo’s organizational structure is as follows:

• Electronics business area including: Yleiselektroniikka, YE International Estonia, YE International Latvia, YE International Lithuania, Noretron Components, Milcon, Infradex, Signal Solutions Nordic and Delfin Technologies, and
• Technical Trade business area including: Machinery, Muottikolmio, Pronius, J-Matic, Filterit, Tornokone, PM Nordic, HM Nordic, Floby Nya Bilverkstad, Lackmästarn, Etelä-Suomen Kuriiripalvelu and Vesterbacka Transport.

Parent company Boreo’s functions will in the future be reported in a segment named ‘Group functions’.

New composition of the Group Management Team

As of 14 December 2023, Boreo’s Management Team will consist of:

• Kari Nerg, CEO
• Aku Rumpunen, CFO
• Mari Katara, SVP People & Sustainability
• Tomi Sundberg, SVP, Head of Electronics 
• Jesse Petäjä, SVP, M&A and Co-Head of Technical Trade
• Richard Karlsson, SVP, Co-Head of Technical Trade

Vantaa, 14 December 2023

Boreo Plc

Kari Nerg

CEO

Distribution:
NASDAQ Helsinki Ltd
Principal media

www.boreo.com

For more information:

CEO Kari Nerg

+358 44 341 8514

Boreo in brief

Boreo is a company listed on Nasdaq Helsinki that creates value by owning, acquiring and developing small and medium-sized companies in the long-term. Boreo's business operations are organized into three business areas: Electronics, Technical Trade and Heavy Machines.

Boreo's primary objective is sustainable long-term profit generation. This is achieved with a business model that is based on the acquisition and ownership of great entrepreneurial companies with ability to generate sustainable long-term earnings growth and strong cash flows. The profits generated by the portfolio of companies are re-invested back to operations or to acquisitions with attractive expected returns on capital. The decentralized operating structure promoting culture of ownership and release of entrepreneurial energy is a core pillar of the firm’s business concept and sustainable earnings growth is ensured through the support and coaching of companies and the personnel.

The Group's net sales in 2022 were EUR 160 million and it employs over 300 people in seven countries. The company’s headquarter is in Vantaa.