Vision, Business Concept, Goals and Strategies
Vision
Addtech shall be the leading value adding tech provider.
Business concept
Addtech offers high-tech products and solutions to industrial companies and the public sector. Addtech creates both technological and economic value added by being a skilled and professional partner in its cooperation with customers and manufacturers.
Financial goals
Addtech's overarching goal is to achieve growth combined with profitability. The Group's objective is earnings growth of at least 15 percent per year over the course of a business cycle.
The profitability target for each subsidiary is a minimum of 45 percent, measured using the relationship between operating profit (P) and working capital (WC). This P/WC ratio encourages high operating profit and low levels of tied-up capital. When combined with the growth target of 15 percent, this creates the possibility of positive cash flow and conditions for profitable growth.
Operating goals
The Addtech Group is to be the leader in value-adding technology trading and be perceived by our customers, suppliers and employees as the most competent and long-term partner.
Strategies
Profitable growth is achieved through continuous business and
organisational development. Addtech has three core strategies for
reaching its goals:
Market-leading positions
Addtech sets out to be the market leader and to build
positions in selected and clearly defined niches with a high
knowledge and technology content and where customers demand
carefully selected products, solutions and subsystems - often in
small and medium-sized volumes. The market-leading position is a
significant factor for achieving stable growth and sustainable
profitability.
Operating mobility
Addtech is to be noted for its flexible organisational
structure with quick-thinking, innovative employees who recognise
new business opportunities. Addtech is to capitalise on the growth
potential of each of its subsidiaries and product areas by dividing
or merging operations, either in whole or in part. Operating
mobility also involves having effective processes for integrating
new operations into the Group.
Acquisitions
Addtech is to work at all times to strengthen its
operations through small bolt-on acquisitions as well as build and
expand positions in chosen niches. Business operations are also to
be acquired in new niches where the Group has the possibility of
becoming the market leader. The ability to apply the Group's
business model is a common success factor in all acquisitions.
Business model
The Addtech Group's business is based on its subsidiaries trading in technology and acting as a link between customers and suppliers. Addtech's customers need a partner that helps them find both the right supplier and the right technology. Customers' products are often technically complex, which means that Addtech needs to have both the technical expertise and an understanding of its customers' business in order to succeed. At the other end of the chain is Addtech's cooperation with suppliers, and the aim is for Addtech's subsidiaries to provide suppliers with the best possible way to sell their products on our markets.
Addtech strive to provide added technical and financial value for customers. This can only happen by customers' products being produced more efficiently or by becoming more competitive. Addtech aims to contribute to both of these elements.