• Articles of association
• General meeting of shareholders
• Election committee
• Board of Directors
• Committees of the board of directors
• Management
• Auditors
• Internal control
• Review by auditors
• Ethical guidelines
• Risk analysis
  • Strategic risks associated with market and industry
  • Operational risks
  • Financial risks

Strategic risks associated with market and industry

Market development/Economic situation

B&B TOOLS’ customers consist mainly of industrial companies in Sweden, Norway and Finland. Based on the Group’s partnerships with construction material resellers, construction companies are also an important customer group. As a result, economic trends in industry and construction in the Nordic region affect the Group’s development. B&B TOOLS’ sales largely comprise industrial consumables and related services, which makes the dependency on industry’s short-term willingness to invest low.

Competitive situation

As the structural transformation and consolidation in the industry progresses, the competitive situation also changes. Customers are increasingly striving to reduce the number of suppliers, and instead to initiate closer cooperation with a few suppliers in the interest of jointly developing the value chain, thereby reducing the total cost (purchasing, stocking, administration and tied-up capital). There is a risk that new players with financial strength grow stronger in the ongoing consolidation process. B&B TOOLS has chosen to take a proactive role in this consolidation and acts, both in the form of a clear acquisition strategy and focus on internal efficiency throughout the entire value chain, which in the future will be crucial factors for success.

Consolidation among customers

Within the area of tools and consumables, the Group’s customers consist of resellers and end customers in the industrial sector, as well as the construction sector and, to a certain extent, to the DIY (Do-It-Yourself)/private market. Restructuring is in progress among resellers, whereby chain constellations are growing stronger in relation to manufacturers and distributors. Competition among resellers has increased as a result of the entry of international players on the Swedish market, especially in the DIY sector. This trend indicates continued consolidation in all sectors among resellers (Industry/Construction/DIY). B&B TOOLS is actively participating in the consolidation process among industrial resellers via TOOLS and cultivates the construction and DIY market through partnerships.