Panostaja Oyj Stock Exchange Bulletin February 2, 2022 10:00 a.m.
Panostaja’s financial strategy and objectives for 2022-2024: We are accelerating value creation by focusing on growing Finnish companies in the service and software sectors
Panostaja Oyj’s Board of Directors has approved the company’s updated strategy for 2022-2024 as well as long-term financial objectives.
Main objectives and strategic directions
- Panostaja will focus on investing in service and software companies. Panostaja will shift to a more networked operating model and establish a close network of advisors with the best accumulation of capital investment expertise in the Finnish services and software sectors.
- Thanks to the sector orientation, Panostaja will strive to build a balanced investment portfolio in which the total value creation is also supported by the synergies between the segments.
- Panostaja will make sustainability a key part of value creation and investment activities to enable sustainable growth and identify new business opportunities.
The clear focus on the service and software sectors enables Panostaja to produce even more added value and invest in the development of its segments. The achievement of growth strategies is ensured through the network of advisors that will be built through sector orientation. The strategy leverages the extensive experience provided by Panostaja’s operating history to implement successful value creation strategies in the chosen areas. The sector orientation also makes it possible to use skills synergies between the segments more widely than before and to increase the competitiveness and efficiency of investment activities. Development opportunities in the service and software sectors are supported by clear trends that foresee growing customer needs and new business opportunities. In addition to this, the large scale of the chosen domains guarantees sufficient opportunities to diversify the investment portfolio against the risks caused by economic and domain-specific trends, as well as a sufficient number of potential investment targets in our category. of desired size.
“Finland has many entrepreneurs with growth ideas who need a partner who can accelerate and manage their growth. We believe in Finnish growth entrepreneurship and our ability to create success. We also firmly believe that responsible and growth-oriented entrepreneurship will create sustainable well-being in Finland. During the history of Panostaja, we managed to create many success stories specifically in the service and software sectors. The experience and expertise we have accumulated through these efforts, combined with our vision that growth opportunities in these sectors are supported by clear and positive structural trends, provide a solid foundation to build Panostaja’s future success. . Over the past year, we have made determined efforts to update our investment portfolio, and I am very excited about our future opportunities to continue implementing our strategy with new sector investments that align our portfolio on upcoming trends in a balanced way. In our operations, we will also make the development of responsibility a more integral part of the value creation of our segments, as we believe that themes related to responsibility will create new business opportunities for our segments,” said CEO Tapio. Tommila.
During the strategic period, Panostaja aims to increase its investment portfolio with several new investments. Potential investment targets that fit Panostaja’s investment criteria are Finnish service and software companies with net sales between EUR 5 and 50 million. The investment targets present significant growth potential, a positive cash flow forecast, competent management and a responsible business model. To realize the potential for value creation, we choose the moment of the sale independently with our owner partners. Panostaja’s largest divestments in the services and software sectors are SokoPro, Kotisun, Flexim Security and Vindea.
Long-term financial goals
Panostaja’s long-term financial objectives describe the ability of our strategy to generate long-term value. Our financial objectives will remain unchanged and the determined execution of our updated strategy will allow us to consistently achieve them:
- The return on equity is at least 15%, with the internal rate of return objective being greater than 22% for each investment target.
- Consistent increase in shareholder and market value such that the overall stock return exceeds the long-term average return of the Nasdaq OMX Helsinki Small Cap Index.
- The equity ratio is at least 40% and, under normal circumstances, the financial structure of the parent company is debt-free. The parent company can only incur debt temporarily to finance business acquisitions between divestitures.
The distribution of Panostaja’s profits reflects the development of the Group’s result over the long term, and the main objective is to ensure the continuity of the Group’s investment activity, after which it will be possible to distribute at least the half of the consolidated annual profit targeted to the shareholders of the parent company, either in the form of dividends, return of capital or share buybacks.
Tapio Tommila, CEO, Panostaja Oyj, +358 (0)40 527 6311, [email protected]
Panostaja is an investment company developing Finnish companies in the service and software sectors as an active shareholder. The company aims to be the most sought-after partner for business owners who are divesting their business as well as top managers and investors. Together with its partners, Panostaja strives to increase shareholder value and create Finnish success stories. Panostaja has five segments. Panostaja shares (PNA1V) are listed on the Nasdaq Helsinki Stock Exchange. During the 2021 financial year, the Group’s turnover amounted to 133 MEUR. www.panostaja.fi