The Group’s strategy is to serve the professional market via AO in Denmark and Sweden and the EA brand and Vaga in Denmark, and to serve the private market in Denmark, Norway and Sweden via BilligVVS.dk, LavprisVVS.dk, LavprisEL.dk, LavprisVærktøj.dk, VVSochBAD.se, Greenline.dk, LampeGuru.dk, LampeGuru.no and CompletVVS.dk.
THE PROFESSIONAL MARKET
In the professional market, it is AO’s ambition to be tradesmen’s preferred supplier of technical installation materials to the market for repair, renovation and maintenance and one of the preferred suppliers to the market for new building projects.
Our main concept is one-stop shopping, digitally and at stores, where customers are offered a complete range of products in a collection and delivery system supported by advanced IT and online trading solutions. AO is engaged in international collaboration through WIM and FEGIME, networks of European wholesalers dealing in plumbing, heating and sanitary ware products and electrical equipment and components. The purpose of this collaboration is to exchange experience and purchase goods at competitive prices. Now, AO is also targeting the carpentry and joinery industry through the acquisition of EA Værktøj.
THE PRIVATE MARKET
In the private market, AO’s ambition is to be the leading online trading platform for the sale of technical installation materials in Denmark and one of the leading online trading platforms in Sweden and Norway.
AO is seeking to actively exploit digitisation in both B2B and B2C. Digitisation is helping to optimise customers’ various options for making their purchases.
Digital trade is defined as trade via websites and the digital selling methods where customers buy products via digital channels without coming into direct contact with sales staff.
AO wants to provide value-added services for its customers, partly by being a trendsetter with new services and digital concepts, and partly by developing the Group’s decentralised profile with stores that are close to the customers. This is supported by AO’s concepts and culture, where staff with their extensive product knowledge and reliable customer service are the key that makes all the difference.
OBJECTIVES
- Annual growth in excess of market growth. This growth must be a combination of investments in organic growth and acquired growth.
- A net profit ratio of 10%, as measured by EBITDA. The increase in the net profit ratio must primarily be achieved through continuous economies of scale due to increased revenue.
- Cash flow from operations at 7.5% of revenue.
- Robust capital resources, taking into account the capital resources policy adopted.