Five strategic focus areas

Beijer Ref has a clear goal – to strengthen our position as a world-leading player. To achieve this goal, Beijer Ref needs to grow faster than the market.

We therefore work according to a strategy that is divided into five focus areas – acquisitions, OEM, supply chain, digitalisation and sustainability.

Acquisitions

Digitalisation

Original Equipment Manufacturing (OEM)

Beijer Ref also works on designing and assembling complete refrigeration systems, refrigeration units and heat pumps with a significantly more environmentally friendly profile; this is known as OEM. To date, we have established such activities in Europe, Asia Pacific and Africa. The goal is to continue to develop modern, environmentally adapted technology to replace products that use refrigerants with a high GWP (Global Warming Potential).

Sustainability

Beijer Ref works strategically on sustainability and has selected focus areas where the group believes that the company can make the most difference. Based on the UN sustainable development goals in Agenda 2030, the group has created a framework for issues relating to the environment and CSR that is implemented at local level by the group’s subsidiaries.

Supply Chain

For a trading group, purchasing is an important strategic cornerstone. Over the years, Beijer Ref has created an effective procurement structure at both central and local level that provides synergies and a competetive price level. The logistics and supply chain is constantly evolving in order for Beijer Ref to achieve maximum efficiency and delivery reliability. Today, the group has more than 40 local logistics centres and approximately >500 branches. This provides rapid access to spare parts for service, maintenance and repairs.

Goals

In accordance with the company's strategy, Beijer Ref has set the following long-term financial and non-financial goals.

Financial goals

Growth

Sales growth of 10-15% annually

Profitability

EBITA margin of 10-12%

Capital efficiency

Return on Operating Capital (ROOC*) shall amount to at least 12%. *R12 EBITA excluding items comparability in relation to average operating capital over the last four quarters.

Capital structure

Net debt shall not exceed 3 x EBITDA over time, excluding the impact of IFRS 16 and pension debt

Dividend policy

Aim to distribute at least 30% of net profit after tax

Non-financial goals

Green products

Sales of self-manufactured products will increase

The goal is to increase sales of self-manufactured products suitable for refrigerants with low GWP below 150 to more than 50% of total OEM sales by the end of 2023. Today, the proportion is 32% (27). The company expects to gradually increase this proportion as demand for refrigeration systems with environmentally-friendly refrigerants increases.

Sharing green knowledge

A total of six academies are established in 2023

Beijer Ref Academy is a good concept for spreading knowledge about green technology to the group’s customers and suppliers and the ambition is to open more academies in the coming years. The goal is to have a total of six academies established by 2023. In 2020, the Group had three academies, the largest of which are located in Padua, Italy and Lyon, France.

Responsible supply chain

Clear agreements with suppliers

The goal is to have a signed code of conduct for the 100 largest suppliers and to have an ongoing process and dialogue to follow up the code. The goal has been achieved, but the process of following up remains to be implemented.

Business ethics and anti-corruption

All employees will undergo training in 2023

The goal is for all employees to undergo training in business ethics and anti-corruption by the end of 2023. So far, more than 90% of employees have completed the training.

Equal work place

Higher proportion of women in all positions in the company

The goal is a more equal group with a higher proportion of women in all positions. Today, about 24% (20) of the company’s employees are women. In the management teams in the group, 17% are women.

Safe and healthy workplace

Sick leave must be below 5%

In order to meet the goal of a healthy and safe workplace, the goal is to have sickness absences below 5%. In 2022, sickness absences amounted to 3.1% (2.4). The company will also offer all white collar workers development interviews and that this shall be fully implemented by 2022.