Mutares subsidiary Terranor Group with accelerated value creation lifecycle expects strong year 2022

• First optimization wave successfully completed
• IT infrastructure and architecture fully deployed in a modern cloud solution
• Clear margin improvements and revenue growth in all areas despite COVID-19 effect
• Second optimization wave starts December 2021

Munich, 8 October 2021 – Mutares SE & Co. KGaA (ISIN: DE000A2NB650) looks back on a successful first wave of optimization at Terranor Group (originally: Nordic Road Services AB, Nordic Road Services Oy) acquired on 4 November 2020. As a provider of road maintenance and road management, the companies of the Terranor Group generated revenues of approx. EUR 140 million in 2020 with around 400 employees.

With the help of the Mutares Consulting Team in close cooperation with the management and motivated employees of the Terranor Group, a comprehensive transformation program was set up within 100 days after acquisition and the first optimization wave was successfully completed. Core success areas are in particular improved tender management, comprehensive profitability improvements of current contracts, improved profitability of new contracts, and overhead optimization. The successes of Terranor AB and Terranor Oy have enabled an add-on acquisition – Terranor A/S in Denmark – successfully completed just 7 months after the launch of the platform.

Since October 2021, the Terranor Group has been operating independently in a modern cloud-based IT architecture. With this efficient solution, the Group was able to noticeably reduce IT costs and achieve a significantly better cost level. According to Mutares, the Group is thus prepared for stable and sustainable growth and meets the globally increasing complexity with state-of-the-art structures.

Contrary to the increasing uncertainties caused by COVID-19, the Terranor Group was able to survive the economic disruptions without any negative effects. As a result of government support programmes and a higher level of commitment in local markets, revenues have even developed above expectations. Ongoing innovations in quality and performance have had a positive impact on bidding due to the increasing demands of state and municipal customers, far from mere price advantages. The effort to further increase the already high competitiveness is underpinned by the recently acquired ESG compliance rating of “advanced”.