12 minute read
Employees
Expertise and commitment central elements of the portfolio
The employees' commitment and expertise are the guarantee that OEM will retain its position in the long-term and short-term as one of Europe's leading technology trading groups. In today's competitive market, where the products are becoming more and more similar, it is often the employees that make the difference.
The employees' skills are regularly upgraded and expanded. Individual development plans combine the business goals and individual goals and support the process of formulating plans for the professional development of the employees.
300
250
200
150
100
50
AGE SPLIT (No.l/age)
-25 26–35 36–45 46–55 56–
LENGTH OF EMPLOYMENT (No./years)
300
250
200
150
100
50
0
-1 1–3 4–7 8–11 12–2020 2019
Average no. of employees 894
Employees at year-end
Women (%) 885
20
Sick leave person/yr (DAYS) 7 887
897
20
8
Training costs/employee
(SEK 000)
Wellness costs/employee
(SEK 000)) 2
1 4
1
Employee expertise is based on top technical and applications know-how combined with a strong sales focus. Sales staff and product specialists are key people in the relationships with customers and manufacturers and build lasting and trusting relationships in line with oem's business model.
It is crucial to use the tools created by digitalisation in the business process with customers and suppliers and in the company's internal processes. The organisation's ability to adapt to and benefit from the opportunities offered by digitalisation are key to the company's competitive edge.
Strong culture
OEM's long-term approach has solidified the business into one coherent organisation that puts performance and well-being at its core. The corporate culture is based on the watchwords – positive attitude, commitment, modesty, tenacity and openness.
Creativity and inquiring minds are encouraged
oem's leadership culture is based on strong teams and specific targets. Each manager builds his or her team and sets clear goals for both the team and each individual. Employees are encouraged to contribute to the development of the company and shape their own careers by being interested, creative and goal-oriented. Most leaders are recruited internally and a great amount of energy and effort is channelled into identifying and developing individuals with leadership qualities who can become future leaders, both locally and centrally. Career progression is generally within the respective company. This is supplemented with Group-wide talent-development programmes and other central initiatives aimed at improving skills and building networks among the employees. Experience of sales work or work within the product organisation is highly valued in career progression and the company encourages employees to move to positions in different parts of the company and different countries too.
Young employees add dynamism and drive
An important part of steadily building a strong, competitive organisation is to continuously hire young employees. Young engineers who are interested in technology and sales add dynamism and drive. Induction programmes and individual development plans enable new employees to quickly learn their duties and are assigned progressively more responsible work. oem has a trainee programme for newly-graduated employees with degrees in engineering or economics and the potential to assume leadership responsibilities in the future. oem also works collaboratively with several educational institutions, offering internship opportunities, guidance in thesis research projects and other assistance. This is a means of attracting future personnel and reaching out with information about oem's business and operations.
Ambitious sales force
The sales professionals must work closely alongside the customers, assume considerable business responsibility and provide customers with the best service in the market. oem has high ambitions when it comes to the ability of the sales staff to identify and take maximum advantage of business opportunities. The sales personnel follow training programmes that run over several years to ensure they have the extensive knowledge of the products that is required. Newly-hired sales personnel attend internal and external courses aimed at promoting personal development and creating an efficient sales methodology. A solid background in sales also opens other career opportunities at oem, such as sales manager or product manager.
Personal development and long-term vision
oem continuously works to improve its attractiveness as an employer to current and future employees. oem's long-term competitiveness is built on a pipeline of young talent and a workforce of employees who grow and develop long-term with the company. The employees' know-how and expertise are regularly updated through training in sales, technology, finance, IT and other areas, as part of their personal development. oem encourages employees to continue developing their skills and abilities in different ways and the production of individual development plans is one of the activities. Business objectives are combined with individual goals to produce plans that facilitate the ongoing development of the skills of the employees. At annual performance appraisals, the contents of the personal development plans are discussed, completed activities are evaluated and plans for the coming year are established.
Well-being and health for performance
Well-being and health are essential for enabling employees to perform and develop as individuals and in a team, and oem has always made the well-being of its employees a central priority. Regular investments are made to create safe, healthy and attractive workplaces and the company encourages its employees to adopt a healthy lifestyle by offering physical activity opportunities and preventive care and wellness initiatives. Activities designed to create cohesion and group dynamics are often conducted in conjunction with conferences or workplace meetings.
Strives to improve equality
All employees shall have equal opportunities based on their qualifications for the job, without regard to religion, ethnicity, nationality, gender, age, disability or sexual orientation. oem's sector is traditionally male-dominated, but the company strives for a more equal gender balance by increasingly seeking to hire women for male-dominated positions.
Hiring employees
oem regularly recruits employees, largely in the area of sales and marketing, to strengthen existing organisations and hire replacements because of natural turnover of staff. In 2020, the headcount decreased from 897 employees to 885 as a result of the pandemic.
A sustainable future
OEM is certain that sustainability is a key competitive tool and essential for continued economic growth and strong profitability. It is an ongoing process in which a healthy business culture and a responsible sustainability programme also leverage OEM's competitive advantage and position as an attractive employer.
In 2013, oem established a Code of Conduct that provides a Group-wide platform for its CSR-related activities. The Code of Conduct is based on the UN Global Compact's ten principles in the areas of human rights, labour, the environment and anti-corruption. These areas encompass the essential components of the responsibility that it is natural to take for all of the Group's companies. The objective is to create effective and responsible work with relevant activities, and that development in environmental, ethical and social issues takes place harmoniously.
CODE OF CONDUCT
Human rights
1) oem supports and respects international human rights within the company's sphere of influence. 2) oem shall not be complicit in human rights abuses.
Working rights
3) oem upholds freedom of association and recognises the right to collective bargaining. 4) oem has a zero-tolerance policy towards any type of forced or compulsory labour. 5) oem has a zero-tolerance policy towards any type of child labour. 6) oem is against all discrimination with regard to recruitment and the performance of work.
The environment
7) oem supports the precautionary approach with regard to environmental hazards. 8) oem undertakes initiatives to promote greater environmental awareness. 9) oem encourages the development of environmentally-friendly technologies.
Anti-corruption
10) oem is committed to countering corruption in all forms, including extortion and bribery.
Key sustainability issues
oem's Board has the ultimate responsibility, through the Group management team, for the Group's sustainability activities. Of the key sustainability issues, the focal points and risk areas identified as being of the greatest importance for both oem and the Group's stakeholders are the following.
Environmental responsibility – The environmental impact from the Group's product and passenger transport, heating of premises and products and packaging materials.
Economic and ethical responsibility – Financial stability and strength is essential for investment in sustainable business development. Ensure responsible business practices that represent human rights and oppose corruption.
Social responsibility – As a responsible employer, be able to offer employees skills development, a positive working environment, good health and safety, and oppose and prevent all forms of discrimination and harassment in the workplace.
The operational responsibility lies in a decentralised corporate culture in the companies. The Group's companies perform at least three sustainability-related activities each year. One of the activities in 2020 was to measure and report emissions of greenhouse gases in accordance with the Greenhouse Gas Protocol (GHG Protocol).The activities are followed up by the boards and management teams. If necessary, the Parent Company can support these activities with tools and processes.
To improve its sustainability efforts, oem reported emissions of greenhouse gases in 2020 as defined by the ghg Protocol, which is one of the most widely used emissions reporting standards in the world. The ghg Protocol requires emissions to be broken down into 3 categories, or scopes. In 2020, oem focused on reporting in accordance with scopes 1 and 2, and kept to goods transport and business travel in scope 3.
Scope 1 Direct greenhouse gas emissions over which the business has control. Scope 2 Indirect greenhouse gas emissions from electricity, district heating, district cooling and steam. Scope 3 Other indirect greenhouse gas emissions arising in the value chain.
TYPE OF EMISSION SCOPE IMPACT
Direct emissions 1 1,040 tonnes of CO2
Indirect emissions 2 0.11 tonnes of CO2 3 2,642 tonnes of CO2
Primarily travel by company car.
Mainly electricity use.
Mainly goods transport. The transport of goods is responsible for the most emissions, followed by business travel by car. The impact of the pandemic on the company's travel is evident through reduced emissions from business travel.
Greater focus on sustainability
The results of the report also form a basis for future activities and the development of sustainability activities that began in 2020. In the future, the sustainability targets will be linked to the UN Global Goals, Agenda 2030, and some of its 17 goals. A sustainability board made up of individuals from a number of the Group's companies was also set up in 2020. The purpose of the board is to ensure there is an increased focus on sustainability throughout the Group. oem is committed to a culture of openness and high ethical standards. Employees play a key role in identifying any non-conformances and are able to report suspected wrongdoing via oem's whistleblowing system.
Committed to reducing its carbon footprint
The environment is part of oem's Code of Conduct and priority is given to activities that lead to greater environmental responsibility. Goods transport, travel, heating of premises and manufacturing and use of products have the greatest environmental impacts in oem's operations. There has been a strong focus on these areas for many years and oem strives to find good environmental solutions and supports development initiatives in these areas. oem's extensive knowledge of the products and applications also enables it to help customers make environmentally-sound and good-quality choices of components and solutions. In
combination with supplier assessments, which provide information on the suppliers' sustainable development practices, this is an integral part of its sustainability activities.
Warehouse management is another important part of oem's sustainability programme. The operations are continuously working to optimise inventory levels of different products so that the correct quantities are purchased while improving availability for the customers. The environmental impacts of freight transport operators are monitored to enable the best transport options to be selected. oem is also committed to reusing packaging materials as far as possible.
Energy savings produce results
One successful activity is an energy-saving project spanning several years that oem is conducting at its facilities in Tranås. Activities and investments that have been carried out include modernisation of the ventilation system, expansion of the heat pump system with geothermal cooling to replace an older electric boiler, and installation of automatic high-speed doors to reduce heating costs and improve the workplace environment. In December 2019, a solar panel array was installed at oem's logistics centre at Höganloft. It generated approximately 240 mwh in 2020. Lighting in most of the properties was replaced with led lighting and this will continue in 2021.
Thanks to the energy-saving measures, the amount of electricity used at the Höganloft logistics centre was the same in 2020 as in 2017, despite a 40% expansion of the facility's area. At other properties, energy consumption has fallen by between 25 and 50%, depending on the property.
Quality is critical to competitive advantage
Ensuring quality at every stage of the business process is critical to oem's competitive advantage. The companies have therefore long been working in a systematic manner to develop and improve quality and efficiency. The Group's own activity management system, “oqd” – oem Quality Development is based on Toyota's principles. The management system includes close monitoring of non-conformances, visualisation of results compared to objectives and improvement initiatives from employees. oem Automatic in Sweden has developed the system which is also used to varying extents in the rest of the Group.
Certified companies
In Sweden, oem Automatic, oem Electronics, Svenska Batteripoolen, Internordic Bearings, Telfa, Ernst Hj Rydahl Bromsbandfabrik, Svenska Helag, Agolux, ATC Tape Converting, oem Motor and Elektro Elco have been awarded iso 14001 environmental management system certification and iso 9001 quality management system certification. In Poland, oem Automatic has been awarded iso 9001 quality management system certification.
Sustainability report
oem's full Sustainability report is available for viewing at www. oem.se
The solar panel array on the new part of OEM's logistics centre at Höganloft generated some 240 MWh in 2020.
ANNUAL REPORT
2020
Five-year Group summary................. 29 KPIs for the last five years ................ 30
ANNUAL REPORT
Directors' Report including the Corporate Governance Report ......... 31
Board of Directors ............................ 38 Senior executives ............................ 39
Financial Statements
of the Group
Statement of Income ....................... 40 Statement of Comprehensive Income 41 Statement of Financial Position ........ 42 Statement of Changes in Equity ....... 44 Statement of Cash Flows ................. 45
Financial Statements of the Parent Company
Income Statement ........................... 46 Balance Sheet ................................. 47 Statement of Changes in Equity ....... 49
Accounting Policies and Notes
to the Financial Statements ........... 51
Signatures ....................................... 85 Auditor's Report .............................. 86
OTHER
OEM shares ..................................... 89 Definitions ....................................... 92 Annual General Meeting .................... 93
