Vision, business concept, goals & strategies
An overview of our vision, business concept and long-term strategy to create sustainable value for customers, partners and shareholders.
“ OEM shall be a leading technology group within components and systems that enable sustainable development. ”
Our Vision
Business Concept
OEM creates sustainable and profitable growth through a decentralized model where entrepreneur-driven companies market components and systems within selected niches. By acquiring and developing companies, the Group generates stable cash flows and long-term growth. The business model is based on local responsibility and decision-making authority, combined with the Group’s economies of scale, network and long-term perspective.
Objectives
OEM’s overall objective is for each business to be leading within its respective niche in terms of both growth and profitability.
Financial Targets
OEM shall maintain sustainable profitable growth combined with a strong return on equity and limited financial risk.
- Sales growth of at least 10 percent per year over a business cycle.
- EBITA margin of at least 12 percent per year over a business cycle.
- Return on equity of at least 25 percent per year over a business cycle.
- OEM shall prioritize a strong financial position to ensure operational stability and enable acquisitions regardless of economic conditions.
- The equity ratio shall exceed 100 percent.
compared with the target of at least 10 %.
compared with the target of at least 12 %.
compared with the target of at least 25 %.
compared with the target of below 100 %.
Strategy
The Group has defined five strategic focus areas that are essential for continued successful development and achieving the financial targets.
Growth
OEM shall create growth through organic development, acquisitions and geographic expansion.
1) Organic Growth
Organic growth is prioritized and achieved by increasing market share and broadening the customer offering. In markets where OEM is established, growth shall exceed the underlying market growth. In markets where OEM is not yet among the five largest players, the ambition is for growth to be significantly higher.
2) Acquisitions
Acquisitions are a central part of OEM’s growth strategy and enable faster expansion. OEM acquires companies and product portfolios that strengthen positions within existing product areas and markets, as well as leading companies that add new products (including proprietary products) or open doors to new geographic markets.
3) Geographic Expansion
Expansion into new geographic markets takes place when conditions are favorable for OEM to become a significant player within the specific niche in which it intends to establish operations.
Customer Offering
OEM offers components and systems within selected niches, adapted to local market needs. Continuous product and portfolio development is central and takes place in close collaboration with both existing and new suppliers. Each local organization is responsible for identifying and developing new products that strengthen the customer offering and gradually increase competitiveness.
Market Approach
OEM shall maintain an efficient and modern market approach where personal sales are combined with digital solutions that act as a hub in the sales process. The personal meeting is crucial for understanding customer needs and translating them into the right technical solutions, while also providing the opportunity to communicate OEM’s experience and expertise.
Digital services complement personal sales and enhance the customer experience, together with digital and printed marketing communication.
Logistics
OEM shall offer logistics solutions that deliver high customer service, quality and cost efficiency. The Group has 15 logistics units, most of which are located in properties owned by OEM. Each unit adapts its assortment to the specific operations and actively coordinates inventory management with other units.
In connection with many logistics units, there are value-adding units that efficiently perform customer-specific adaptations and assembly.
Employees and Leadership
All operations shall be characterized by a family-oriented and business-driven culture. OEM shall provide employees with strong opportunities for development within the company, aligned with business goals and strategies as well as individual ambitions.
The recruitment and employee strategy shall ensure that a significant proportion of leadership positions are filled internally.
Link to Double Materiality Assessment
The double materiality assessment has identified material impacts, risks and opportunities related to, among other areas, resource and energy use, supplier governance and the Group’s own workforce. The results now form a basis for continued work to strengthen strategic priorities and decision-making processes.