A WORD FROM THE CEO

In 2019 Ergofast was facing a challenging construction market in Sweden which resulted in declining demand in most product areas. At the same time the major rental customers were under ownership changes which caused further decline in the rental and service area. For many years the Swedish krona has been weakening and this continued in 2019 and has had considerable impact on the result as most products are purchased in Euro and USD.

The declining demand and weakening of the krona resulted in a drop in sales and profitability. To get back to growth in sales and improve profitability Ergofast has started to implement a new more efficient organisation. During 2019 Ergofast changed from the supplier Fischer to MEFA for the installation products and to MKT for the fastening products to gain competitiveness. Ergofast became distributor of Holz Technic, specialist in fastening products for wood construction, which is expected to grow rapidly in the coming years.

Ergofast is perceived as a professional supplier in the market for fastening solutions in the construction business. The business model is to provide the leading rental companies and distributors in the construction and infrastructure segments in Sweden and Norway. With industry leading suppliers as MAX, MEFA, Holz Technic, MKT and Ergofast own brand we offer top class premium products and systems for fastening and installation. Combined with the knowhow of Ergofast experienced sales engineers this makes us competitive and forms a solid foundation for future growth. With the continuation of the successful business plan implemented in the recent years, the implementation of the new efficient organisation combined with the new product areas, Ergofast expects to be successful in the market and grow its sales and profits.

/Kristian Henningsson, CEO.

IMPORTANT EVENTS IN 2019

FAIRFORD´S VIEW

Fairford has for many years had an exposure towards the construction industry and we believe that it makes sense to maintain this exposure in our portfolio. The construction industry is cyclical in its nature but it is a market which is here to stay for the long term and that makes Fairford and our investment horizon a suitable owner.

Ergofast’s business in specific is fundamentally based on making its clients’ operations more efficient, ergonomic and safe which are trends that are strengthening in the market and attributes that we easily can relate to as owners of the company. In Ergofast we see our platform to broaden our interests in specific niches of the construction industry.