Annual Report • Apr 13, 2018
Annual Report
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Photo: Board and management: Klas Wiréhn. Form and production: Narva. Printing: Billes
We offer services at every level of the energy supply chain from production through distribution to consumption.
We work on a broad front within the infrastructure sector with the modernization and planning of e.g. roads, tunnels, railways, bridges, airports and harbours.
Based on well-tried methods and with innovative solutions, we have the ambition to create buildings that meet your specific requirements.
Rejlers Telecom is a technologyand partner-independent supplier that offers technical and legal consulting services in network infrastructure, communication and information security.
At Rejlers, we have a long history of completing industrial projects throughout the Nordic region. We also have experience in following our customers in their projects worldwide.
Together. Building by building. Unit by unit. Kilowatt by kilowatt. Megabyte by megabyte – we design your future. Today.
Innovation is our passion. Our team is our resource. Multifaceted is what we are. Accelerate the business for our customers is what we do. Greater value and profitability is what we offer. Long-term trust is our reward.
Rejlers is one of the Nordic region's major technical consulting firms. 2,000 experts who work on projects and IT solutions in Energy, Buildings, Industry, Infrastructure and Telecom. We currently have offices in 80 locations throughout Sweden, Finland and Norway. Rejlers had sales of SEK 2.5 billion in 2017 and its class B share is listed on Nasdaq Stockholm.
It is with a bright view of the future and positive memories that I thank you for my time as the CEO.
Peter Rejler
My journey together with Rejlers has been enormously developing and if I were to do it all again, I wouldn't want to change a thing. This is exactly how I want to summarize all of my 20 years at Rejlers. A time that has been educational, rewarding and extremely enjoyable!
In my time at rejlers, I had the privilege to meet and get to know many fantastic people and colleagues, all with an attitude and approach that I usually call the "Rejlers' spirit". Among other things, this means that we take care of each other, are involved in the business and have fun together. With this attitude, Rejlers will always have a major competitive advantage.
It is with great joy that I hand over the role as the President and CEO to Viktor Svensson.
For my own part, I am very much looking forward to taking on the role of Chairman of the Board and working with Rejlers' future from that perspective. The Chairman of the Board will be elected at the Annual General Meeting on 7 May.
I have a positive view of the future of Rejlers and it has been an eventful year that we are leaving behind us. 2017 offered major challenges, but we also achieved new successes. In February, Rejlers Accelerated was launched, a new portfolio of digital solutions in a number of industries and business areas. The effort means that we can remain on the forefront in terms of the digitalization of various services. One milestone during the year was also that we for the first time entered the retail market through Embriq and the Connected Store service, which offers a complete concept for connected stores.
During the year, we also continued the work on developing a digital network for partners. The partner platform "Perfect Match" is being launched in 2018 and means that we can streamline our resource and gain access to additional expertise and added sales through partners.
In 2017, we also managed to win several new customer assignments and underwent an educational process in connection with our largest tender
to-date. We see greater demand among our customers for our digital and sustainable solutions.
Altogether, 2017 was an intensive year when we made major investments to become better in prioritized areas. The year was also marked by extensive efforts in demanding assignments and a restructuring of the operations in Norway. Events that contributed to us making larger write-downs during the year than we had ever done. Despite these challenges that cost us a great deal, we managed to see a turnaround at the end of the year and a more positive development in profitability.
We are now in a situation where a continued transformation of the operations is necessary. We need to expand in successful business areas and reduce others. At the same time, we are continuing to be well-positioned for the future through a greater focus on digitalization and complete responsibility in the projects. During the year, the demand for Rejlers' services continued to increase, which creates new business opportunities for us.
It is therefore with a bright view of the future and positive memories that I thank you for my time as the President and CEO. I am also confident that Viktor will do an excellent job of taking on the CEO role to create profitability and success for Rejlers.
Peter Rejler, Withdrawing President and CEO
A WORD FROM THE CEO
I want to build a prouder and more attractive Rejlers that goes straight to the goal and has profitability in every assignment and project.
Viktor Svensson
It's with great energy and enthusiasm that I'm taking over as the President and CEO of Rejlers. Right now, we are in an exciting time where many trends occurring around the world are to be solved by engineers. Being able to be involved in and manage a Nordic technical consulting firm in such a time is incredibly stimulating.
In recent years, we have seen how the engineering profession has gained a new status, or perhaps rather a vindication. The engineer is to find the answers to everything from global warming to smart cities and self-driving cars. With its 75 years of experience and roughly 2,000 engineers, Rejlers has an excellent starting point to be involved and actively shape the future. My foremost task will be to seize this opportunity and create profitable growth in the company.
I am honoured to be chosen to be the President and CEO of Rejlers. I want to manage the trust placed in me in the best way possible by prioritising and carrying out the right efforts in the right order for the company. My first step will be to review operational efficiency. It is largely about improving the businessmanship in the company. In recent year, Rejlers has devoted a great deal of energy to acquisitions and growth, but has had less focus on profitability. I believe that Rejlers can become clearer and faster to the benefit of our customers, ourselves and our shareholders. Then, in step two, together with the company's managers, I will review the long-term strategy to build a more modern, visible and vital company and brand. Together with my colleagues, I want to jointly build a prouder and more attractive Rejlers that goes straight to the goal and has profitability in every assignment and project.
To succeed in these things, I believe that many answers can be found in the organization. Rejlers already has a strong position in the market today with a good service offering in the respective business areas. This provides good conditions to achieve greater success by improving internal processes and developing the whole of the company. I want to set my sights on the
operations to investigate what synergies exist, what we should focus on and what should possibly be cut. I also see great potential in a more cohesive organization where the company's managers have clear, measurable targets and a strong mandate to succeed.
The customers' trust in Rejlers is the most expensive asset we have. Rejlers also has an experience bank that few participants in the industry can match. I want to build further on these strengths to create a company that has a different future DNA than the major competitors.
With customers who are leaders in their business areas, I see many interesting opportunities for Rejlers in the future. One of these is as the future's "digital navigator" and independent meeting place. Rejlers has the potential to bring together both customers and technologies, which creates several exciting scenarios for the future. I believe we can take a completely unique position as a "digital navigator" in the long term.
My early vision is that Rejlers will find its very own expression and its own place in the industry through an even more pointed and attractive niche. I also want to see a profitable company that grows faster than the industry and attracts the market's best engineers and managers. It is somewhere there that it begins. With more than 15 years' experience from the industry, I have learned that the markets best engineers and leaders are always present in successful companies.
I simply want to create the industry's most exciting company and am looking forward to beginning to draw the map to succeed in this. Change takes time – but I am convinced that, together, we will be able to find the right course and achieve the goal.
Viktor Svensson, President and CEO
4
2.5
1.0%
SALES, SEK BILLION
25.1
OPERATING PROFIT, SEK MILLION
OPERATING MARGIN
SEK 0.71
EARNINGS PER SHARE
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Rejlers' domestic market comprises Sweden, Finland and Norway, with the rest of the Nordic region and the Baltic area as growth markets.
Every year, Rejlers carries out around 15,000 customer assignments. Our 10 biggest customers are: TeliaSonera, Telenor, Swedish Transport Administration, Skanova, Hafslund Nett AS, Agder Energi, Liikennevirasto, Vattenfall, Hålogaland Kraft AS and Caruna Oy.
2,000 EMPLOYEES
Rejlers has 2,000 employees at around 80 locations in Sweden, Finland and Norway.
Rejlers is a family-owned company founded by Gunnar Rejler in Småland, Sweden in 1942. The company has operated as a technology consultancy ever since.
The Rejlers Class B share is listed on Nasdaq Stockholm. The Rejler family holds 55 per cent of the votes. Other major shareholders are Lannebo fonder, Nordea Investment Funds and Didner & Gerge Fonder.
Customer satisfaction increased to 5.3 on a six-point scale.
Rejlers is a Nordic group offering technical consultancy services and IT solutions to customers in the areas of Energy, Buildings, Industry, Infrastructure and Telecom. Rejlers puts together teams of consultants with different skills who collaborate to carry out projects all the way from preliminary studies and planning to design, engineering design, project planning, project management and programming.
At Rejlers we love technology that truly creates value. With our expertise, curiosity and willingness to deliver the most value adding solutions for our customers, we strive to constantly add business value by being at the forefront of knowledge.
At Rejlers we have the courage and the power to make decisions. With personal responsibility, common sense and the constant ability to see the big picture, we create the conditions and innovations required to meet our client's needs.
At Rejlers we prioritise healthy existence in all aspects. Whether it is about creating business value for our customers, a healthy and health-promoting workplace and life situation for our employees or a financially prosperous business for our shareholders and ourselves.
We offer sustainable and digital solutions for the future.
We strive to exceed the customer's expectations to keep their trust. With our technical know-how and our expertise in digitalization, we constantly work to combine innovations with respect for the Earth's resources at the same time that we provide added value to our customers and their businesses. We handle challenging assignments thanks to our committed and skilled employees who always feel that there is a better alternative.
We deliver value by combining long experience, broad expertise and indepth market insights.
The overall goal for Rejlers is to create and realize added value for the customers, the employees and the shareholders.
One of Rejlers' financial targets from 2015 is to have an operating margin of at least 8 per cent over time. Another financial target is stable growth in which the company's equity/assets ratio exceeds 30 per cent.
Rejlers seeks growth in sales of around 15 per cent per year and 10 per cent in the number of employees, which will enable us to achieve the 2020 – 3030 – 4040 growth target, i.e. by the year 2020 we will have 3030 employees and sales of at least SEK 4040 million.
Rejlers regards the health of its employees as an important success factor. The target is to achieve a wellness ratio of at least 75 per cent. The definition of wellness is a maximum of three occurrences of illness and five sick days during the calendar year. Employee turnover should be around 10 per cent. The outcome of our employee survey must achieve a minimum of 80 per cent of the maximum possible.
Rejlers seeks to be the customer's natural choice for sustainable and digital solutions. We encourage health-promoting activities and create healthy workplaces and inspire young people to choose the engineering profession.
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Our strategy is profitable growth in the Nordic region. It will take place primarily in the big city regions through organic growth and continued strategic acquisitions. In developing and refining our business, we concentrate on a holistic perspective and high level of internal efficiency. Our growth markets are mainly Energy, Buildings and Telecom.
We strive for a balanced customer base with a differentiated business cycle. A strong local presence is Alpha and Omega in our ability to meet customer requirements.
Increased international cooperation between our skills areas and with our partners means we can offer the digital solutions that best advance our customers' projects.
A distinct company culture and shared values are part of our success. A uniform, strong brand and our proactive approach to our customers allow us to develop the company further in an increasingly digital world.
In 2017, we launched a new vision, mission, value offering and core values. This is to be perceived as an even more interesting, exciting and value-creating company for potential and existing customers and employees in the Nordic region. In parallel with the strategic work, we have updated our graphic profile to match our brand.
Rejlers will enjoy greater success if we contribute to the sustainable development of society. To achieve this, we work with three focus areas within the framework of our sustainability work.
1. Rejlers seeks to be the customer's natural choice for sustainable and digital solutions. We work with energy efficient solutions, renewable energy production and the development of sustainable infrastructure.
2. We are passionate about health at Rejlers. If our employees enjoy good health we will be more successful, and our ambition is for every employee to feel more alert after a day at work.
3. Because we need capable engineers to build tomorrow's sustainable communities, Rejlers works to ensure more people choose engineering as a profession
Rejlers' highest objective is adding sustainable value to its customers' businesses and processes. With our technical skill and expertise in digitalization, we continuously combine innovation with respect for the planet. We focus on renewable energy, long-term energy efficiency improvement, sustainable buildings and infrastructure with minimal environmental impact in our assignments. We transform experience, industry insight and expertise into sustainable and digital solutions that are in step with existing and future needs in society.
For Rejlers, the customer's business, market and operations are central to our offering. We choose our customers and partners with care and our business is permeated by our values and our Code of Conduct. Our goal is to add and create sustainable value and propose solutions that help our customers achieve both their business goals and their sustainability and environmental requirements.
Rejlers' multifaceted organization, experience and extensive expertise makes it possible for us to create optimal outcomes in the form of value creation and efficiency. Our committed and motivated employees take responsibility and show ownership for their deliveries with a focus on every aspect of sustainability. At the agreed time, with high quality and constant focus on long-term sustainability and environmental solutions, our ambition is to exceed the customers' and stakeholders' expectations.
For us at Rejlers, long-term relationships are important, as is developing together with our customers with the goal of making our customers more successful and helping them meet the surrounding world's sustainability requirements. The solutions, processes and offers that have been created and formulated together with our customers and partners are evidence of digital innovations and creation of value to society.
The world is changing, but it doesn't change by itself. It's changed by people who have the passion and power to do so.
Rejlers seeks to be your best business partner with sustainable solutions that provide financial improvements. We strive to be the best by proactively developing solutions that include a life cycle perspective including business value, technology, quality and delivery.
Rejlers' proprietary tool for project engineering of power lines creates new business opportunities. The new tool uses AR, Augmented Reality, for visualization and can handle a large amount of metadata that is adapted to various target groups' presentation needs with the push of a button. The grid owner and the contractors that ultimately build the power line gain access to both the kind of drawings they are accustomed to working with and visual information in the 3D model. Purchasing officers can easily calculate the materials needed for a projected solution. This results in a faster, less costly project engineering that maintains a higher quality than
In March, Rejlers was certified by Det Norske Veritas (DNV GL) according to the quality management standard NS EN ISO 9001, the environmental management standard ISO 14001 and the occupational health and safety standard OHSAS 18001. Every day, several hundred engineers work in the company with advice, project engineering, maintenance and operations of infrastructure critical to society.
"Rejlers has developed at breakneck speed in Norway. In a short time, a number of companies with different cultures and systems have been merged together and gained a shared management model with a focus on quality and sustainability," says Thomas Pettersen, CEO of Rejlers Norway.
Rejlers Embriq is a significant supplier of IT services to the retailing sector, and during the major sales day known as Black Friday the pressure is on. Nearly 1,800 physical stores in the Nordic region are dependent on IT services that Rejlers Embriq provides.
"Things heat up on Black Friday. The number of transactions in the system increases sharply and we have extra staff ready to resolve any possible kind of problem. For our customers, Black Friday is the starting shot for Christmas shopping. From that day René Eriksen, Operations Manager at Rejlers Embriq.
Rejlers turned 75! We celebrated this with various events for customers and employees under the motto Beyond 75. Since the beginning in 1942, Rejlers has developed into one of the Nordic region's major technical consulting firms with 2,000 experts who work with projects and IT solutions in Energy, Buildings, Industry, Infrastructure and Telecom. Our committed and creative employees have contributed to this growth. Beyond 75 gathered customers and employees where Rejlers has offices in Sweden, Norway and Finland.
The majority of Sweden's roughly 230 fibre networks are small or medium sized. Through the acquisition of Infrakonsult Syd and partial ownership in the application Fiberkollen, Rejlers can offer a documentation solution that is easy to use. Moreover, it suits small and medium-sized network owners' wallets. There is great potential in the aftermarket in an area that to-date has had limited possibilities to work with documentation of the network in a good way. Network owners who have been pilot users during software development are very satisfied.
Every year, the analyst firm Universum conducts a survey among professionally active university graduates, where more than 10,000 people in Norway, in more than 35 industries, rank companies according to how attractive they are. In the 2017 survey, Rejlers was named one of Norway's best employers in its industry for the first time.
"We are very proud of the results. Rejlers Norway has grown in recent years and can we use new digital technology to create sustainable solutions for society and the environment. These results show that it is an attractive area to work in for younger employees," says Thomas Pettersen, CEO of Rejlers Norway.
To meet the customers' growing needs for digitalization, Rejlers presented a portfolio of new digital solutions during the year. The launch took place at the Subcontracting Trade Fair in Tampere, Finland on 26–28 September.
Rejlers Accelerated introduces digital solutions in a number of different industries and business areas. The first tools – Accelerated Design, Performance, Operations and Fleet – build on new technologies, including digital models, advanced data analysis, IoT (Internet of Things) and AR (Augmented Reality), packaged in practical solutions for design, operations and maintenance in the industrial and energy sectors.
Digitalization is affecting and accelerating the modernization of the energy industry. Development is going quickly. At the SvD Energy Summit on 21 September, Rejlers' Business Manager Jenny Edfast spoke about the effects of digitalization and the industry's innovative capacity. Thomas Pettersen, CEO of Rejlers Embriq and Rejlers Norway held a talk on how the energy industry can increase innovative capacity and create change. Other speakers from Rejlers were Claes Böös, an expert on power lines and David Westerlund, an expert on pattern recognition.
Rejlers Embriq was the main sponsor of the 2017 Smartgrid Conference that was arranged in September in Trondheim. The conference is arranged by Energy Norway in cooperation with the Norwegian Smartgrid Centre, and this year's theme was "What digitalization trends we see in the next generation power system?".
"Every day, we help energy companies in the Nordic region with digitalization adaptations, and we have extensive focus on how to benefit from large amounts of data by buying the right services," says Espen Kåsin.
The Nordic market for technical consulting firms showed continued good growth in 2017. Architectural and industrial consulting firms have the strongest market with a rising order backlog index. For the technical consultants, a slowdown is reported, but order bookings are still at record levels. In total, the expectations are high in the industry with filled order books and a positive view of a continued strong development in 2018. The strong growth results in a large recruitment need with increasing employee turnover as a consequence.
Growth for architectural and technical consultants has mainly been noticed within the sectors of Buildings and Infrastructure. Housing construction continues to be strong even if falling home prices may lead to smaller volumes for the next few years. Cutbacks in the housing sector are compensated by public construction and infrastructure projects. Continued infrastructure investments in transport systems, power grids, broadband and telecom provide a stable market. An increasingly stronger economy also strengthens the market for the manufacturing industry with a strong domestic demand to-date and predictions of higher export demand. This in turn paves the way for investments in processes and products that directly benefit the industrial consultants.
The market for technology consulting continues to be affected by growing globalization, urbanization, automation, greater mobility and the Internet of Things Information management is now about both analysis and handling of large amounts of data, as well as control and optimization.
The traditional market for technical consultants is rapidly changing. With today's technical development and an increasing internationalization, technical consulting firms are meeting competition from global players active in a market with specialization driven by new technologies and innovations. The consolidation of the market is continuing with increasing numbers of acquisitions. The already large players are growing ever larger.
In large procurements in e.g. the infrastructure field, it is increasingly common for a number of technical consulting firms to join consortia where they contribute specialist expertise. Among the companies, networks for cooperation with smaller, specialized consulting firms are also increasingly being built.
The customers focus on their own core business leads to higher demand for qualified engineering and IT services. This also places higher requirements on understanding the customers' processes and businesses. Automation in society is increasing and driving development in most market segments. The on-going digitalization will thereby generate assignments for a long time to come in most industries with high expectations of efficiency improvement and profitability. It is important for the technical consulting firms to be attentive to this trend to identify early on technologies and processes that can be developed to competitive solutions in the best interest of the customers.
The price trend has been sluggish for several years even if some improvement has been noted in recent years. Strong contributing causes can be found in higher price pressure and costs in connection with increasing employee turnover. It will be crucial for consulting firms in the future to find solutions to raise the average rates. Figures show that the average rates among industrial consultants have dropped somewhat while the trend for architectural and technical consulting firms has been positive.
One way to increase the average rates can be sought in the development of new business models. Comprehensive undertakings with responsibility for final delivery or other creative arrangements with greater risk and responsibility may be examples of this.
The billing ratio among the companies continues to increase, from 74.7 per cent on average in 2013 to 79.1 per cent at the beginning of 2017.
The favourable economy for technical consulting firms creates extensive demand for employees, especially those with specialist expertise. Qualified engineering expertise is an item in short supply today and the number of students in technically related educational programmes is not increasing to an extent that matches demand. The shortage of relevant expertise creates problems for the companies that to a very large extent recruit from other technical consulting firms, which drives both employee turnover and wage drift.
Rejlers' Swedish operations are the Group's largest, with more than 1,100 employees distributed over some 40 offices from Malmö in the south to Kiruna in the north. Rejlers Sweden accounts for around half of the Group's total sales and offers the customers technical consulting services in the areas of Energy, Buildings, Industry, Infrastructure and Telecom. We continuously develop the service offering with particular focus on digitalization, the energy supply of the future and safety solutions.
The construction and property market remains strong and the strong market in electric power and power generation is continuing. Investments in energy production are also increasing as well as interest in, for example, wind and solar power. We see a recovery and higher investment rate in large parts of industry where focus is on digitalization and safety issues.
Digitalization is continuing and the efficiency enhancements that Rejlers' innovations can demonstrate have incited considerable interest among our customers. In 2017, we lifted 3D models into the VR and AR world and offered our customers new digital services, such as various applications with digital twins*. We also strengthened our positioning area of safety, and have a good reputation in the industry in electrical safety, machine safety, physical security and IT security.
* A digital twin is an exact reproduction of a certain machine in the form of software. The physical machine provides its digital twin information on its status. Inspection and troubleshooting can then be done on the digital twin in many cases. This way, the physical machine does not have to be stopped except when absolutely necessary.
Rejlers' Finnish operations have more than 600 employees at 18 locations and account for around 19 per cent of total sales.
We offer various engineering services to customers in Energy, Buildings, Industry, Infrastructure and Telecom. The customers have access to Rejlers' expertise in the form of consulting services, service products and project solutions.
In 2017, we acquired two technical consulting firms: Insinööritoimisto R.J.Virta Oy in heating, ventilation and sanitation project engineering and Sähkölinna Oy in electricity project engineering. We also acquired the electricity network project engineering operations of PKS Sähkönsiirto Oy in the construction industry.
The growth outlooks in the energy area are good thanks to the industry's investments in energy production and distribution. During the year, demand for Rejlers' services grew.
Industry achieved a very positive growth in 2017. The order bookings for Rejlers' services are extensive in both the area or equipment suppliers and production facilities. In the construction and property area, the market situation is very good and Rejlers won several new assignments during the year. In the infrastructure area, several long-term projects are under way. To meet the customers' growing needs for digitalization, Rejlers presented a portfolio of new digital solutions during the year, Rejlers Accelerated.
Rejlers' Norwegian operations have 215 employees at 22 locations and account for around 13 per cent of total sales. The company offers technical consulting services in electrical power, electrical safety, energy advice, electrical project engineering, documentation, safety and readiness, railway and telecom to customers within Energy, Buildings and Infrastructure.
The on-going digitalization of the energy supply creates extensive opportunities for Rejlers. In the next few years, major investments will be made in the electricity network. New housing areas, shopping centres and business parks being built need secure access to energy. In connection with this, two large framework agreements with Agder Energi were extended by another two years. The one agreement comprises technical consulting services for all of the companies in the Agder Energi Group. The other agreement concerns implementation of electrical inspections at the electricity customers of Agder Energi Net. Rejlers Elsikkerhet launched new IT cooperation or electricity inspections with Cubit AS to jointly offer a total solution for electrical inspection services in the entire Norwegian market. Rejlers began cooperation with Grid design and Mmv architects regarding the design of the future's hubs and cities. This cooperation strengthens Rejlers' position in the infrastructure area.
Thomas Pettersen, CEO of Rejlers Embriq, was appointed the CEO of the entire Norwegian operation, including Rejlers Norway, in April. This coordination creates both business and administrative synergies between Rejlers Norway and Rejlers Embriq, which is expected to contribute to lower costs and higher profitability.
(36%) Energy (7%) Buildings (6%) Industry (9%) Infrastructure (40%) Telecom
Rejlers' business operations in information technology lies within Rejlers Embriq's area and comprises services for energy, retailing and several other transaction-intensive industries. The operations have around 160 employees, are located in six locations in the Nordic region and account for around 21 per cent of Rejlers' total sales.
Rejlers Embriq supplies IT solutions to energy companies and customers in retailing throughout the Nordic region. The offering covers development and delivery of services through the central system Quant, which is a complete platform for Smart Grid, and a complete range of services in Smart Metering Operations.
Rejlers Embriq also supplies IT operations services to a number of customers in advanced and modern data centres, and IT consulting that offers very competent consultants in system development and testing/test management.
The market for energy metering services is expected to grow over the coming years, as many of the remote reading meters in the Nordic countries are replaced. The planned development of a central Swedish electrical hub over the next few years is very positive for Rejlers' initiative in this sector.
During the year, Rejlers introduced advanced digital solutions in the energy sector. We have also developed the Connected Store concept – digitalization of retailing – which contributes to minimal stock, optimal logistics and reduced emissions. During the year, we won new assignments for customers in retailing, a new market for Rejlers Embriq.
The Nordic energy market is facing significant technical shifts and major investments. Extensive investments are being made in distribution of renewable energy and in the security area. Digital solutions are a major trend in society and today we can resolve challenges in different ways from before with the help of smart IT systems and effective IT tools.
Rejlers offers services at every level of the energy supply chain from production through distribution to consumption. This involves modernising and streamlining existing installations for energy companies and existing power installations.
Among other things, Rejlers has developed an IT tool that improves the efficiency of new construction and renovations of facilities in the power system. Rejlers' digital solution is linked to visualization through AR (Augmented Reality) or VR (Virtual Reality) to facilitate understanding and provide extensive time gains. Decisions and investigations can be made from the office instead of out in the field, which provides considerable economic and environmental gains.
We have expertise and long experience of preparing solutions for new power sources, such as wind power, wave power and solar energy. These sources can be tied together into an efficient and smart electrical network, a so-called Smart Grid, for intelligent electrical grid systems that balance supply and demand for electricity in a sustainable, reliable and cost-effective way.
Rejlers delivers IT-based system solution to energy companies and the retail trade. In addition, we also support our customers through various kinds of measurement services in the energy area that will contribute to large energy savings and reduced emissions. Through our experience and breadth of knowledge, we have the possibility to, together with our customers, drive the work on energy efficiency improvements forward to take care of all, or selected parts of the process.
Examples of assignments during the year
Rejlers has pilot tested an entirely new way of using tools for augmented reality (AR) to locate Internet of Things (IoT) sensors in operations and maintenance of Fortum's hydroelectric power plant Oulunjoki. In 2017, Rejlers Accelerated Operations solution was implemented, which combines the facility's digital twin with sensor information and augmented reality (AR). The solution is controlled through a mobile app or a computer.
Rejlers coordinating geographic data management for the power grid Over the past year, Rejlers has won four contracts within the field of GIS – Geographic Information Systems – for Svenska kraftnät. GIS is a geographic computer-based system for collecting, storing, analysing and presenting geographic data. Rejlers collects and analyses information concerning geography, environment, culture and terrain, which provides an important decision-making input at Svenska kraftnät in their projects relating to stations and power lines. In the latest project we won, we are serving as coordinators in Programme North, where we have a key role for digital geographic information management for all projects in northern Sweden for Svenska kraftnät, says Jenny Edfast, Business Manager for Energy at Rejlers.
The building and civil engineering sector is running at full speed in the Nordic region, where public buildings are the driver of the development.
Comfort, energy savings, monitoring and profitability are just a few of the requirements set when new buildings are planned or existing buildings are renovated. Rejlers is very accustomed to working with these kinds of issues in extensive projects.
Our ambition is to create buildings that meet highly set standards by combining tried-and-tested methods with innovative solutions. Rejlers works on the entire life cycle, with both new building and renovation of retail premises, schools, offices, hospitals, hotels, sports facilities, homes and industries.
We are already involved in early stages when new areas are to be developed. Assignments include everything from architecture to building construction and project design to project management. In all phases, Rejlers is involved as a consultant and helps the customer with checks and inspection of finished properties. Modern analysis and visualization tools also provide the customer with the ability to stay abreast with developments in construction projects throughout the planning phase.
The services cover everything from electrical, telecommunications and heating, ventilation and sanitation project planning to control and communi-
cations technology. A growing area is building automation and various kinds of smart solutions for reducing energy consumption in properties. We also have assignments in power supply and lighting and creates alarm systems and fire prevention solutions.
Examples of assignments during the year
The City of Gothenburg will be 400 years old in 2021 and that same year, the Nordic region's tallest building, Karlatornet, will be completed. Rejlers has prepared a solution for the district's power supply on behalf of Karlastaden Utveckling. Karlatornet alone, which will be around 245 metres tall, will have nearly 600 apartments, a skybar, hotel, conference centre, spa, restaurants and stores.
Icon Kiinteistörahastot Oy has chosen Rejlers as the technical designer for heating, ventilation, automation and control (HVAC), as well as the electric system in the construction of the city centre in the Storåker city district. The gross area is 25,000 sq.m. and encompasses residential buildings, commercial premises, an apartment hotel and parking areas, as well as a 20-storey tall tower complex. Storåker is among the largest city district projects in the City of Espoo and in the entire capital city region of Helsinki.
Rejlers has extensive experience of conducting industry projects in the Nordic region from industries such as mining, paper and pulp, and the steel and engineering industry. We also have experience in following our customers in their projects worldwide. Rejlers works with customers in the manufacturing industry, in the sectors of food, medicines, automotive and offshore (operations at sea around fixed or mobile platforms). Based on the customer's needs, we either work as an integral part of the customer's organization or assume total responsibility for a delivery or function.
Rejlers offers technical solutions and systems for streamlining, automating and developing the processes of industry and their products for greater productivity, quality and profitability. We have broad expertise in the disciplines of automation, processes and mechanical engineering and address the entire flow, from planning, concept formulation and analysis to project management, design, implementation, deployment and maintenance. We also conduct innovation and development work to help customers develop new products and systems.
Since 2016, we also offer services in process design and security and digitization processes.
Examples of assignments during the year
Rejlers has developed an entirely new system to use information in intelligent maintenance for the industrial maintenance company Efora. The system is used at one of Efora's operating locations to transfer information so that it is available exactly where it is needed. Rejlers' solution Accelerated Operations combines digital twins and real-time information with augmented reality. The system delivered in 2017 is a pilot project and was brought into use by Efora's maintenance staff on the selected production line. Its use is planned to gradually expand to production employees.
Rejlers Embriq has provided IT services to Gresvig since 2003 and has now entered a new three-year agreement. The agreement comprises the delivery and operation of IT services including platforms, networks and support/customer centres (SPOC). Gresvig owns, develops and operates the chain concepts G-SPORT, G-MAX and INTERSPORT in Norway. "Retailing is definitely one of the areas we are investing in," says Thomas Pettersen, CEO of Rejlers Embriq and Rejlers Norway. "We are providers of IT services to the retail trade with around 1,800 stores in the Nordic region in total, in electronics, sports, textiles and opticians."
A well-functioning infrastructure is crucial for societal development, human mobility and commercial competitiveness.
Rejlers has broad expertise in the infrastructure area with regard to modernization and planning of, for example, roads, bridges, tunnels, railways, airports and ports. The largest share of the company's assignments re in the railway sector. These assignments comprise everything from total project undertakings with project management responsibility to preliminary studies for project planning of installations for railway, electrical, telecommunications, signalling and safety systems.
Road and tunnel projects in the metropolitan regions involve technically complex systems for the control and monitoring of e.g. traffic flows or ventilation systems in tunnels. Rejlers also plans and project engineers lighting in tunnels, on bridges and along roads. The plans, designs and offering also includes various kinds of environmental services in conjunction with planned civil engineering projects.
The telecom market is driven by changed user behaviour and a growing demand for higher capacity of large data volumes. The rapid technical development, continuous demand for modernization and optimization of the communication networks drive the operators to meet the constantly growing demand for availability. Rejlers has a broad range of technical and legal consulting services in network infrastructure, communication and information security. The offering includes, for example, net planning, net design, optimization and project engineering of both fibre and mobile networks.
In addition to this, we are also engaged for investigation and project management assignments, risk and vulnerability analyses, risk management, construction inspections, documentation, training, site acquisition and advice in large procurements. We handle the function undertakings with turnkey responsibility and large assignments from government authorities in the safety area. We also have assignments in power supply and lighting and creates alarm systems and fire prevention solutions.
Energy Buildings Industry Infrastructure (20%) Telecom
Examples of assignments during the year
10%
Rejlers has been chosen by the Swedish Transport Administration as one of several suppliers in framework agreements for specialists in traffic control systems. "Traffic control systems are very much about different technologies for signalling systems and traffic management. Rejlers has long experience in the area and extensive digital expertise that is important, for example, when the Swedish Transport Administration digitizes and centralizes Traffic Routing to fewer locations. We are looking forward to supporting the client in traffic control," says Soma Rostam, Tender Manager.
In pace with increasing alarms about data breaches, demand for solutions to improve IT and information security has increased. At the same time, growing numbers of authorities, municipalities and county councils demand that suppliers must be certified under ISO 27000. Rejlers offers the customers an arrangement that covers the needs from strategies for IT and information security for physical protection. During the year, several large transport companies have chosen Rejlers' arrangement.
20
Rejlers endeavours to act responsibly in everything we do. Our way of acting is based on our values: passionate, empowered and healthy. All employees must follow Rejlers' Code of Conduct, which is included in the employee handbook "How we work" and is signed by our employees when they are hired. The code contains business ethics principles, environmental responsibility and human rights, as well as rules for Rejlers' business conduct and the company's responsibility toward colleagues, customers, shareholders and other stakeholders. Rejlers respects the UN Global compact and its ten principles in regard to human rights, working conditions, consideration for the environment and anti-corruption. All employees at Rejlers shall be treated equally and given the same opportunities. This is reflected in our daily operations and during recruitment.
Rejlers' business operations are based on a high ethical standard. We do business within the scope of laws, ordinances and international conventions in every country in which we operate. At Rejlers, we do not tolerate abuse of power, nepotism or any form of corruption. Rejlers' employees shall not engage in activities that can lead to conflicts of interest or use relationships with customers for personal gain. In our dealings with customers, subcontractors, suppliers and other stakeholders, we therefore take great care when providing benefits or activities of various kinds to promote contacts or relationships. Rejlers' employees shall keep information and commercial secrets that concern Rejlers' current and future business operations strictly confidential.
Sustainable solutions must form a natural part of the assignments we carry out for our customers. The major environmental benefits from Rejlers' operations occur when we help our customers streamline, modernize and automate their infrastructure and processes. This covers everything from energy-efficient solutions and smart power grids to the development of renewable energy production and sustainable infrastructure. During 2017, customer demand for sustainable, digital and energy-efficient solutions rose, which created more business opportunities for Rejlers.
Over the years we've developed close, transparent relationships with our customers. Our customers have great confidence in us and our quality-assured services. Rejlers is qualified to ISO 9001 and ISO 14001 standards. This means our assignments – from concept to completion – are planned and controlled according to our quality and environmental standards. Our employees must have an insight into the importance of the environment and must work to comply with international and national environmental goals. Employees at Rejlers should also contribute their knowledge and, together with our customers, make choices that contribute to a sustainable development, such as when selecting materials and regarding energy savings. Rejlers also conducts efforts to minimize our own direct environmental impact in the office environments and in business travel.
Our goal is to have the market's most satisfied and loyal customers. We measure customer satisfaction once a year and for 2017, our average rating was 5.3 on a scale of 6. In connection with the close of all major assignments, we ask our customers to confirm if they perceive an environmentally positive impact through our solutions. We also ask our customers to do an estimate of the actual savings of energy, which we then follow up with the customer to have the estimated environmental effect validated.
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Rejlers has helped create tomorrow's communities since 1942. Our ambition is for Rejlers to make a significant contribution to the development of sustainable communities through the assignments we carry out for our customers. To achieve this, we work with three focus areas within the framework of our sustainability work: sustainable solutions, healthy workplaces and tomorrow's engineers.
Through our new vision and mission, together with the environmental policy, awareness of sustainability has increased in the organization. This together with growing numbers of customers requesting energy efficiency improvements and solutions that take into consideration a life cycle perspective means that we are now making progress towards taking the position in the market that our vision points out.
Energy production from solar cells is now the fastest growing form of renewable energy worldwide. In China and India, solar cell parks are being built with installed power on a scale of nuclear power reactors. Facilities are located in Sweden and Denmark today.
It is likely that growth will also take place in small and medium-sized solar cell facilities where solar panels are placed on roofs of single-family homes, large properties, industrial buildings and parking areas. For several years, Rejlers has conducted operations in the solar cell field and offers complete services from preliminary study to inspection. Here, the company can draw from the collective expertise in Energy, Buildings, Industry and Infrastructure. The cooperation goes hand in hand with Rejlers expressed strategies on energy efficiency improvements and sustainable energy production.
Rejlers infrastructure develop solutions and project engineers Sweden's railways. This work also entails extensive responsibility for the natural environment. In cooperation with the Swedish Transport Administration, Rejlers works in all of its projects to maintain the biodiversity along and around the railway tracks.
"In the contract phase, Rejlers is involved and follows up on the Swedish Transport Administration's requirements on the contractor so that consideration and regulations are followed in terms of the environment and nature. This involves everything from pollution in the soil (handling of railway ties and soil masses), works in waterways, biotope protection (preservation of avenues and dikes in agricultural land) and the right machines being used in land with sensitive flora and fauna," says Camilla Kylin, Environmental and Sustainability Consultant at Rejlers' Infrastructure business area.
For many years, Rejlers has focused on health issues and worked in various ways for employees to thrive physically and mentally. This is well rooted in the operations and in our values. For us, it is simply about feeling well and having motivation and a joy of life both at work and in free-time activities.
This presupposes that we create an environment that provides the possibility of working and developing in the way that best suits the individual employee. Leadership and the balance between work and free time are key factors in this. We are all different and the employee must be given the opportunity to choose how, where and when the work is done as much as the customer assignments allow and in consultation with his or her supervisor. We know that this is much appreciated and, in our annual employee survey, a very high percentage of the employees say that they have a good balance between work and free time.
A healthy workplace also means that we have guidelines and procedures that ensure that we act responsibly based on our Code of Conduct and our business ethics guidelines. In these, we describe our position by backing the ten principles on human rights that are in the UN Global Compact. All of these principles can be put into action in daily operations, whether they concern e.g. discrimination, the environment or combating various kinds of financial crime.
It is important that these rules are not only paper documents, but also a natural part of our culture, just like the health issues. To get more focus on these issues and achieve greater transparency, we have a system for whistle-blowing where employees can openly or anonymously report improprieties to an independent external party, which also helps us investigate and handle received reports. Examples of reports covered are serious cases of financial crime, environmental violations and security risks, as well as serious forms of discrimination and harassment. In 2017, we did not receive any reports that were classified as a serious impropriety or conflict of interest and which then fall within the system's area of use. Other cases of problems that normally arise in a business shall and have instead been handled within the scope of daily operations.
A part of the health work is also exercise activities in the form of the Rejlers Activity Challenge, the "Blodomloppet" race and, not least, the Grönklitt Relay Race on skis where teams from the entire Group meet over a weekend for a relaxed competition on skis and to socialize. Many local activities are also conducted with the aim of creating satisfaction and well-being, such as cooking courses, concerts, floorball and local exercise runs.
For many years, Rejlers has had sickness absence as an employee target. We still measure sickness absence as a key performance indicator, but have instead shifted to measuring healthy attendance as a target. A person who has sickness absence a maximum of three times for a total maximum of five days over the year is counted as healthy. Our ambitious target is to have a healthy attendance of at least 75 per cent. The outcome for 2017 was 73 per cent.
| Employee data | 2017 | 2016 | 2015 | 2014 | 2013 |
|---|---|---|---|---|---|
| Number of employees | 1,994 | 2,027 | 2,082 | 1,742 | 1,664 |
| Average age | 45 | 45 | 45 | 44 | 44 |
| Total sick leave % | 3.2 | 2.8 | 2.9 | 2.7 | 2.1 |
| Of which long-term* % | 1.8 | 1.4 | 1.2 | 1.3 | 1.1 |
| Employee turnover % | 13 | 12 | 10 | 10 | 8 |
* The definition of long-term illness has changed and the values for 2013-2015 have been adjusted.
Perhaps the most important reason for the employee satisfaction is good leadership. Rejlers continuously works to develop our managers and the culture that provides the conditions for good leadership. The manager's commitment is important especially in the introduction of new employees and we have clear procedures for what is expected of a manager in this process. It is pleasing that we in our annual employee survey repeatedly receive very good results in the index that shows how satisfied employees are with their managers, both in terms of general leadership and professionalism. In the survey, we also measure the scope and quality of our annual employee talks, which are largely aimed at skills development. Through exit surveys of those who choose to leave us, we can also see that there are very few who say that they are leaving due to their immediate manager.
Rejlers has a decentralized organization that creates closeness and freedom, which is appreciated by the employees. Simplicity and clarity are also important. It should be easy to work at Rejlers. Therefore, we have devoted extensive efforts to reviewing work tools and processes to enhance the efficiency of the work and simplify cooperation with different parts of the organization.
Finding the right balance between common and local solutions is crucial to meet the needs of both the company and the employee.
The revision done in 2017 of Rejlers' vision, business concept and core values also provides greater clarity that makes it easier for the employees to understand where Rejlers stands and what we are striving for.
Rejlers is constantly developing and the changes that take place all the time demand a flexibility of both company and employees. In most cases, the changes mean something positive and provide them possibilities for development that the employee wants. However, a continuous dialogue is always necessary between managers and employees to create understanding and engagement for the new situation. The interaction between the company's and the employees' interests and needs is important and to ensure the dialogue, a new concept for employee development talks has been developed. To go further, there is also an instrument with a life wheel where the employee can reflect on, and plan, his or her life situation in various areas to get a good balance in life.
An organization also has to continuously change in its composition to obtain vitality and novel thinking. Part of this is that we have a target of having an employee turnover of around 10 per cent. In 2017, voluntary mobility was 13 per cent. The high level is mainly attributable to a tough competitive situation in the Swedish market and extensive change activities in the Norwegian operations.
In addition to a controlled employee turnover, it is also important to increase diversity in terms of gender and ethnic background. We have always measured gender, but beginning in 2017 we also started measuring the percentage of our employees with a foreign background. This was 10 per cent for 2017, which was a small increase compared with 2016. The percentage of women was 18 per cent in 2017 compared with 17 per cent in 2016. The percentage of women managers increased from 10 to 12 per cent.
As one of the Nordic region's largest aid organizations with work in countries where there is not always functioning infrastructure, Norwegian Church Aid has an extensive need for basic, smooth cooperation between staff and offices around the world. Rejlers Embriq has provided IT services to Norwegian Church Aid for many years. The agreement is now being expanded with future-oriented IT tools that will contribute to improving the staff's collaboration and cooperation.
"Norwegian Church Aid works to build up safe and robust communities to be able to protect and save the lives of people who live in extreme poverty or disadvantage. In these situations, well-functioning communication between our different stations is important," says Norwegian Church Aid's IT Manager Bjørn Are Geithus.
Rejlers is participating in the EU research project Stepwise, which is testing a new method that will lead to reduced carbon dioxide emissions. The method purifies the gas better and is more cost-effective than existing methods for reducing carbon dioxide emissions from heavy industry. The separated furnace gases will in the next step, in a subsequent research project, be converted to fuel in the form of methanol intended for ship operations.
For the past eight years, Rejlers has sponsored a school in South Africa – Qhakaza High School – that has 1,200 pupils. Among the Star for Life programme's results are improved pupil health, a significant reduction in the number of teenage pregnancies, more youths with jobs, more students to universities and better future prospects. Rejlers finances scholarships for a number of graduating students so that they can begin university studies to become engineers.
Soma Rostam is a railway engineer. She did her degree project at Rejlers and went directly from studies to large infrastructure assignments at full speed. Today, just over two years after graduation, she is a tender coordinator and assignment manager.
"The atmosphere at Rejlers suits me perfectly. Anyone driven by an inner motivation who takes the initiative is encouraged. It's a perfect climate for passionate about the interaction that arises in the assignments when technology, people, business and our customers meet, I have developed a great deal in several different areas and there is still a lot to learn."
Eelis Hyypiä is a second-generation Rejlers employee. He previously worked as a process operator in the production at the paper mill. Then he studied to become an engineer. At first, he worked with temporary projects, and a year ago, he became a permanent employee at Rejlers' office in Kotka.
"I think Rejlers is a good workplace where I can work with paper mills from a different perspective. Right now, I am working at the mechanical engineering department and plan parts for the paper machine together with very experienced colleagues. For me, it's important that Rejlers really takes the employees' well-being into consideration. We have different health benefits, and we even take outings where all 600 employees in Finland are invited. Things like that are important for a good atmosphere."
Rejlers Embriq is a substantial provider of IT services to the retail trade and is now intensifying this effort. The goal is to become the market leader in the position as the systems integrator for the industry through the Connected Store concept. The concept creates security for the customer throughout the infrastructure, from the digital contact points in the store to the computer room being monitored and working. Svein Cato Winther is a business developer with a focus on development of the retailing concepts in Rejlers Embriq.
"I am looking forward to embrace this. There are a lot of incredibly exciting things happening in the industry right now. The future winners in retailing are those who are able to offer seamless and relevant customer experiences that are produced dynamically, cost-effectively and with low risk."
Line Aasen is an electrical power engineer with a Master's degree in renewable energy from the University of Agder. After graduation in 2013, she found a job as a consulting engineer at Rejlers Elkraft in Kristiansand. Here, she works to design the power supply for new residential areas. She makes facility descriptions, calculates how much materials are needed and prepares necessary agreements with land owners and authorities. She also helps electric companies with documentation regarding new infrastructure.
"I like new challenges and I work with skilled colleagues who I learn a great deal from. The dream is to be responsible for the project engineering of large high-voltage facilities in the power grid. At Rejlers, I have every opportunities to develop professionally and take on larger jobs over the coming years."
Rejlers needs many new engineers. Fortunately, more and more are working further into their senior years, which entails a higher average age and a greater need to employ younger engineers to achieve a good age balance. With the change taking place with growing numbers of turnkey assignments and a smaller share of resource sales, better conditions are also created to employ more new engineering graduates.
We are active in the work at universities with the aim of generating interest in working at Rejlers. We do so by participating in job fair days, guest lectures and targeted events like company evenings and by welcoming placement students and students doing degree projects. However, it is crucial that we as a company develop in a way that makes us attractive and that our employee offering provides added value in the competition for the talents. Here, our own employees are the best ambassadors and recruiters.
One way to generate interest in Rejlers is also to offer trainee programmes. We have various forms of such programmes in Embriq and the Energy operations. They have developed well and we are planning more similar programmes in other parts of Rejlers.
We are dependent on the employees' expertise and that it is continuously developed so that we can meet, and exceed, the customer's expectations. Complex and pioneering assignments mean that our employees constantly develop. The level of education and the theoretical expertise is continuously increasing, through new recruitment, acquisitions and educational efforts.
With talent programmes like Rejlers Next Generation, we also create a good career start for the younger employees who apply and are accepted to the programme. Being able to work closely and develop together with other younger employees is a good start to their careers.
In pace with Rejlers developing new operational areas, better conditions are created for the individual employee to develop in the direction planned together with his or her immediate manager. There are career path descriptors for advancement as technical specialists, team leaders and assignment managers and as managers with budget and personnel responsibility.
We offer many young engineers the possibility to get a flying start through Rejlers' talent programme.
The talent programme offers the possibility of education together with practical experience in projects at Rejlers at the beginning of one's career. Rejlers has 2,000 technical consultants with long and broad experience and, through the talent programme, can offer the chance of quickly entering the role of a consultant by sharing the knowledge, experience and networks that we have.
Rejlers' Next Generation talent programme takes place for 12 weeks and includes seminars in the entire project cycle interspersed with project work to create a thorough knowledge and understanding of the business and the consulting role.
Corp. ID no. 556349-8426, Box 30233, SE-104 25 Stockholm Tel +46-771-78 00 00, Fax +46-8-654 33 39 E-mail [email protected], www.rejlers.com
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