Case example: Nordomatic

Creating an impact leader in smart buildings

From sourcing to lasting impact

Trill Impact's proprietary I.M.P.A.C.T. approach provides a robust approach integrating private equity and impact management throughout the investment life cycle. Below we have summarized our journey, from an impact perspective, with Nordomatic to date.

IDEATE

Trill Impact quickly identified Nordomatic as an attractive investment, from our perspective Nordomatic benefits from favorable market growth and regulatory trends, evidenced by increased demand from property owners and tenants for improved energy efficiency and indoor climate as well as stricter reporting requirements. We recognized distinct operational value creating areas, including strengthening of the service business. With several proprietary inroads to the company, industrial advisors and previous experience with similar businesses, Trill Impact was well connected and educated about the company and the sector.

Trill Impact analysed and concluded that Nordomatic's products and services directly contribute to the following SDG targets and goals:

Primary
#7.3 By 2030, double the global rate of improvement in energy efficiency

Supporting
#9.4 By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes

#13.3 Improve education, awareness-raising and human and institutional capacity on climate change mitigation, adaptation, impact reduction and early warning

Learn more about EU's emission targets

MATERIALIZE

To gain deeper knowledge into all commercial, operational, and financial aspects of Nordmatic - to understand risks and value creating levers - a due diligence process was conducted, including an in-depth analysis of Nordomatic's current and potential contribution to the SDGs in an EU context. In line with our standard approach, the analysis was based on the Impact Management Project's (IMP) five dimensions of impact. The assessment concluded how Trill Impact could support Nordomatic to achieve its full impact potential as part of the value creation plan. Industrial advisors and Trill Impact's dedicated impact experts at Nordea supported the process.

Summary of Nordomatic IMP assessment

PARTNER

For Trill Impact it's critical that the fund and the portfolio company's interests are aligned. Therefore, several collaborative workshops were conducted before signing to discuss how management's expertise and company culture, combined with Trill Impact's approach, can accelerate Nordomatic's value creating growth and impact plan to become the industry impact leader.

Key actions and related Impact and ESG KPIs were agreed in an Impact roadmap as part of the value creation plan. The KPIs were designed to demonstrate impact and benefit Nordomatic's stakeholders, including customers and employees. The intention was to ensure focus, progress, and quick wins in the implementation phase.

ACCELERATE

Post-closing, a clear governance structure and a strong board with relevant industry competencies were composed to support and guide management on their journey.

Nordomatic finalized the Impact roadmap, including annual and long-term targets with related actions. Trill Impact provided tools, expertise, and support as needed. The targets were integrated into Nordomatic's as well as Trill Impact's incentive programs. Successful impact performance was also linked to financing interest rebates.

The Acceleration phase was very interactive to build a strong relationship with management, get to know the customers, the wider team, and other key stakeholders in our ambition to bring out the best of the organization and address more challenging areas immediately.

Finalizing the Impact roadmap included validating the KPIs with industry experts and defining the baseline for each KPI, set up processes for measuring the relevant, but not always easy to measure, KPIs, and finally project very ambitious but still realistic targets. It wasn't always that easy, but in the end – as the CEO, Olov Schagerlund concluded the roadmap…

" Creates meaning for our employees, value for our climate smart customers and not least reduced funding costs for Nordomatic. Talk about win-win-win-win (the fourth is the win for our planet) "

COLLABORATE

We are now on our joint journey. Trill Impact has a collaborative approach, providing support, tools, and expertise to accelerate impact and value creation, even supporting the dialogue with Nordomatic's customers when valuable from Nordomatic's point of view.

We believe measuring financial and impact progress is critical for continuous improvement and success. Impact and ESG performance are reported quarterly and discussed frequently in the Board, as it is the core of the business and operational excellence.

Any deviations from targets are identified early and are acted on. For the most recent external update on Nordomatic's impact journey, see their Sustainability report.

Read Nordomatic's Sustainability Report

TRANSFER

When the time has come to part ways with Nordomatic, we will together with management, consider how the impact mission can be further developed and anchored in a new ownership setting, as Trill Impact's ambition is to create lasting positive impact.

The total actual impact generated will be assessed versus the Impact roadmap and targets with any deviations evaluated and learned from. The results will be communicated to Trill Impact investors and other stakeholders.

» Trill Impact's investment in Nordomatic

» Case example: First six months together with Nordomatic

» Deep-dive: Impact Management Project assessment of Nordomatic