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Sustainable value creation

Ahlström Capital combines the best features of an industrial company, an investment company, and a family-owned company. We invest assets that the Ahlström family has accumulated for 170 years. We hold significant financial resources as one of the largest investment companies in Finland. Our mission is to create a better world for future generations through sustainable value creation. The values of the Ahlström family - ambition and responsibility - guide all our operations. We have a long history, and we want to continue that legacy and increase the company's value for future generations.

When screening for new holdings, we focus on selective deal and business characteristics and always want to be able to have an impact on the development of the possible portfolio company. We typically invest EUR 50-150 million and look for lead investor positions. We invest in both listed and privately held companies and prefer companies with Nordic origins. While we do not have strict sector limitations, we are most familiar with industrial companies with a Fibre and Industrial technologies background.

The target company should operate in a healthy megatrend-driven market, have a sustainable value creation model and a favourable value chain position. Relatively low cyclicality is a plus. We look for ompanies with a proven competitive edge, evidenced by market share gains and solid profitability. The companies should also have identified growth potential in area(s) where they have the right to win.

In real estate, we invest in properties in central locations in growing areas in Finland. We create value through active ownership and use our ability to execute real estate development and conversion projects. We look for commercial properties in established office areas in Helsinki, Espoo and Vantaa for our Core real estate portfolio. We target for asset size of EUR 10-75 million. Our Flexible real estate portfolio comprises a variety of property types: residential, office (secondary), hotel, logistics, light industrial and data centre. We look for these properties mainly in Helsinki, Espoo and Vantaa, but also in Tampere and Turku. To be more agile, the target equity stake of properties in our Flexible portfolio is EUR 5-35 million and we can also invest through joint venture -structures or real estate companies.

At Ahlström Capital, we always make a comprehensive analysis of the company during the investment process. It is important to have a thorough understanding of the company's markets, competitive strength, and leadership & organisation, as well as historic performance vs. peers, current momentum, and possible limitations to value maximisation. This sets the baseline for all value creation initiatives.

During Ahlström Capital's ownership, we support our portfolio companies' development mainly via active board work and support to management. Key value drivers include operational & commercial excellence programs, human capital development and ESG (environmental, social and governance) development. The main responsibility of these is with the portfolio company management and board. Also, mergers and acquisitions, divestments, and transformational investments to improve business profile are an integral part of our tool kit. In the value creation processes we also want to align interests towards a targeted end state. However, reaching the set goals does not necessarily means an end to our ownership, as we have flexible ownership periods for our assets and are not obliged to exit within predefined timeframe.