Sustainability is a key driver for the demand for Purmo Group’s solutions

• The European countries have requirements for long-term renovation strategies to achieve energy-efficient and decarbonised building stock by 2050.
  – Requirements are related to the cost-effective transformation of existing buildings, which have the biggest impact on global warming, into nearly zero-energy buildings.
  – Requirements are also linked to replacements of old high-temperature systems with low-temperature systems, such as underfloor heating or heat pump radiators.
  – In renovations, radiators are a competitive and cost-efficient option as a heat emitter.

Other trends in sustainability

• Energy efficiency for new and existing buildings.
• Governmental and local incentives and requirements.
  – The shift to renewable energy sources.
  – Energy efficiency through low-temperature systems and well-insulated housing.
  – Energy performance requirements for new and renovated buildings.
• Consumer preferences moving towards sustainable solutions and products.

How does Purmo Group address this

• The Group’s wide range of low-temperature emitters are fit for new build projects, such as underfloor heating, and renovation, such as low-temperature heat pump radiators.
• Purmo Group’s focus is also on delivering complete solutions that optimise energy use, supporting energy transition in European buildings.

Digitalisation is enabling development and driving the demand for smart products of Purmo Group

• Digitalisation is driving the building markets, offering better capabilities for smart controls, large data sets and Building Information Modelling1 (BIM).
• The availability of data and Artificial Intelligence (AI) capabilities in data control systems have improved operational efficiency and are also supporting decision-making online.

How does Purmo Group address this

• A key pillar of the Group’s strategy is offering smart products that enable energy optimisation through intelligent algorithms.
• In parallel, the company is focused on automating key steps along the value chain.

1) Building Information Modelling (BIM) is the process of managing information for a building. Based on an intelligent model and enabled by a cloud platform, BIM integrates structured, multi disciplinary data to produce a digital representation of an asset across its lifecycle, from planning and design to construction and operations.

The urbanisation trend is expected to continue globally and in Europe(2), driving the demand for the systems and solutions Group

• The number of people living in cities has more than doubled over the last 40 years and is projected to reach 5 billion by 2050.
• The growth of population in cities is not expected to reverse.
  – Cities today are responsible for over 60% of energy consumption, 70% of greenhouse gas emissions and 70% of global waste.
  – The continued need for renovations of the existing buildings exists.
  – The continued need for technologies that support the building, renovation, and maintenance of buildings in urban areas remains.

How does Purmo Group address this

• The Group collaborates with developers to design optimal heating systems.
• The company delivers energy-efficient solutions that enable the renovation of heating systems for the European residential sector.

2) Source: European Commission > Knowledge for policy > Continuing urbanisation, 1 December 2023.

Skilled labour shortage3 creates reverse opportunities for Purmo Group’s business

• The demographics are shifting with the ageing population, particularly in developed countries. As traditional construction methods face challenges in finding skilled labour, there is a growing interest in off-site construction, including prefabrication.
  – It is expected that by 2030, there will be a global human talent shortage of more than 85 million.
  – Europe is particularly expected to be impacted by a shortage in skilled labour.
  – Building and related trades are expected to see some of the highest labour shortages in the EU.
  – The shifting immigration patterns and restrictions in some markets are further limiting the availability of skilled workers.

How does Purmo Group address this

• The Group has a range of prefabricated products through our brands, such as Thermotech.
• Purmo Group’s solutions streamline the construction process by providing prefabricated products that are easy to install and integrate.
• The company’s commitment to efficiency translates into shortened project timelines, enabling builders to meet deadlines without compromising on quality.

3) Sources: Employment and Social Developments in Europe (ESDE) report 2023, European Commission. The global talent crunch, a study by Korn Ferry, 2020. Future of Jobs report, World Economic Forum, 2023 (Most common labour shortages by occupations in Europe).