Vision, business concept, goals and strategies

Vision

OEM shall be a leading technology trading group within components and systems for sustainable development.

Business Concept

OEM offers a broad and deep range of components and systems from leading suppliers in selected markets in Europe. With a well-developed local market organisation and efficient logistics, OEM is a better alternative to suppliers setting up their own sales companies. OEM provides a high level of expertise and service and markets the products according to the specific conditions of each respective market.

Goals

OEM's overall business goal is to be one of the leading technology trading companies in its chosen geographical markets. Profitability will be on par with, or better than, that of the largest players in each market.

Financial targets

OEM shall maintain sustainable profitable growth together with a good return on equity and with limited financial risk

• Minimum sales growth of 10 percent per annum through a business cycle.
• A minimum EBITA margin of 12 percent per annum through a business cycle.
• A minimum return on equity of 25 percent per annum through a business cycle.
• OEM will prioritise a strong financial position to ensure operational stability and enable acquisitions, regardless of the economic climate.
• The debt/equity ratio shall be below 100 percent

STRATEGY

OEM has defined five strategic areas that are important for the company to continue to develop successfully and achieve its financial targets.

OEM prioritises organic growth. OEM achieves organic growth by increasing its market shares and expanding the product range that the company offers to its customers. Where OEM is well established, the operations are expected to show growth above the underlying market growth. In markets where OEM has not yet reached a position among the top five players, the aim is to achieve significantly higher growth.

Business combinations are a priority in OEM’s growth strategy. OEM acquires companies and product ranges that strengthen its market position within existing product areas on existing markets, including companies that add a completely new product range or give OEM access to a new geographic market

Geographic expansion into new markets will take place when it is possible for OEM to become a prominent player by representing several of the company’s suppliers.

Product range

OEM shall offer a product range consisting of components and systems from leading suppliers. The range is adapted to the local markets in which OEM operates. Continuous development of the product range is of central importance for OEM – work that is carried out together with both existing and new suppliers. Each local marketing organisation is also tasked with finding new products that will further enhance the competitive edge of the portfolio of offerings.

Marketing activities

OEM shall have a strong marketing approach, which is mainly based on personal sales combined with the website as a hub in the sales process. Face-to-face meetings are essential to understand the customer's needs, while providing the opportunity to share OEM's experience and technical expertise. Face-to-face selling is supported by digital and printed marketing communication materials.

Logistics

OEM shall develop logistics solutions that deliver high levels of customer service and quality, as well as significant cost efficiencies. In total, there are 15 logistics units within the group, with the majority of the real estate owned by OEM. Each unit adapts its range to current operations and works towards greater coordination of the stockholding with other warehouses. Many of OEM’s logistics units also have processing units that provide efficient customised adjustment and assembly of products.

Employees and management

All activities should be permeated by an informal culture with the focus on entrepreneurship. OEM gives its staff opportunities to develop within the company, taking into account the targets and strategies of the business and the ambitions of the staff. Recruitment and employee strategies will lead to a significant number of leadership positions being filled internally