OEM International

Quarterly Report • Apr 24, 2025

Interim report

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Q1 2025 – Stable demand and a new record quarter

Both new orders and sales increased in the first quarter of the year by 4 and 3 percent respectively, resulting in another record quarter. Currency trends had a positive impact of 0.4 percent on sales, and organic growth amounted to 2.7 percent, which is slightly higher than the previous quarter. New orders were 2 percent higher than sales, which resulted in the order book increasing by SEK 42 million in the quarter.

Operating profit (EBITA) was unchanged in comparison to the previous year, where a weaker gross margin was offsetting by increased net sales. The EBITA margin weakened to 14.9 percent (15.4).

Regional development

A positive quarter, with three quarters of the operations enjoying growth. All Swedish operations showed growth in the quarter, while there are variations in demand for the foreign operations.

The strong demand in Sweden of the previous year has continued into the first quarter, as the region's sales increased by 4 percent. Currency trends had an impact of just under 1 percent, and organic growth was just over 3 percent. New orders were in line with both sales in the quarter and new orders for the first quarter of the previous year. ATC Tape Converting, Ingemar Liljenberg, Agolux, and Telfa all enjoyed growth rates of over 20 percent in the quarter. The Group's largest company, OEM Automatic, increased sales marginally in the quarter.

The Finland region, the Baltic States and China, which have seen weaker demand for a long time, saw increased sales of 2 percent, of which organic growth made up 3 percent, and currency tgrends had a negative impact of 1 percent on growth. Particularly positive was the high level of new orders, which increased by 18 percent in comparison to the corresponding quarter last year, and was 4 percent higher than sales. OEM Electronics, Motor & Bearings and OEM Automatic enjoyed the strongest growth in the quarter.

The Denmark region, Norway, the British Isles and Eastarn Central Europe had a strong second half last year and increased sales by 1 percent. While currency trends had an impact of half a percentage point, and organic growth amounted to half a percent. Operations in Poland, Denmark and Hungary performed well in the quarter.

Acquisitions

On 23 April, Vierpool BV in The Netherlands was acquired. The company is a distributor of industrial automation and has several similarities with the OEM Automatic entities within the group. The company has an annual revenue of approximately SEK 120 million with operating profit of about SEK 11 million. Its business model aligns well with OEM's and by the acquisition OEM is established on a new and interesting market.

Market conditions

The turbulent market conditions and the strengthening of the Swedish currency are having a negative impact on the demand for Swedish export industries, but these factors are also likely to generate new business opportunities. Foreign markets are experiencing greater variations, meaning we can also expect a tougher business climate there, which is likely to generate opportunities for OEM's business model. A strong balance sheet and creative and innovative employees offer good conditions for gaining market share and making acquisitions.

New Board of Directors

Since a new Board of Directors is being elected today at the AGM, I would like to take this opportunity to thank the outgoing board members for their work. Both my management team and I have experienced an open and rewarding collaboration and we have appreciated the board's commitment and wise input.

l would also like to take this opportunity to welcome new board members and look forward to the next phase of development within OEM.

Jörgen Zahlin Managing Director and CEO

Net sales

MSEK

Share by region for 2024

Incoming orders

Incoming orders amounted to SEK 1,401 million (1 351) in the first quarter of 2025, which is an increase of 4%. In the first quarter, incoming orders were 2% higher than net sales.

As at 31 March 2025, order books amounted to SEK 895 million (891), which is marginally higher than the same time last year.

Net sales

In the first quarter of 2025, net sales totalled SEK 1,373 million (1,331), which is an increase of 3%. Organic growth was 2.7% and currency effects were a positive 0.4%.

Compared to the previous year, the highest percentual net sales growth was achieved by ATC Tape Converting, Agolux, OEM Electronics Poland, Ingemar Liljenberg and Telfa, all of which ehnjoyed growth above 20%.

Of the Group's net sales in the first quarter of 2025, Region Sweden accounts for 59%, Region Finland, the Baltics and China for 18% and Region Denmark, Norway, the British Isles and Eastern Central Europe for 23%, which is unchanged compared with the corresponding quarter last year.

EBITA margin

Trends in earnings

Earnings before interest, taxes and amortization (EBITA) was unchanged in the first quarter of 2025 and amounted to 205 (205).

The EBITA margin for the first quarter amounted to 14.9% (15.4).

On a rolling 12-month basis, the EBITA margin was 15.2%.

In the first quarter of 2025, operating profit grew by 1 percent to SEK 197 million (196), giving an operating margin of 14.3 percent (14.7).

In the first quarter of 2025, profits after tax decreased by 2% to SEK 153 million (157).

Profit per share for the first quarter amounted to SEK 1.10 (1.13).

Return

The return on equity in the first quarter of 2025 was 6.3%, compared to 7.5% in the corresponding quarter of the previous year.

On a rolling 12-month basis, the return on equity was 27%, compared to the target of 25%.

Equity amounted to SEK 2,493 million (2,185) and the liquidity was 74% (70) on 31 March 2025.

Regional sales trends per quarter MSEK

Sweden

OEM Automatic AB, OEM Motor AB, Telfa AB, Svenska Batteripoolen AB, Elektro Elco AB, Nexa Trading AB, OEM Electronics AB, Internordic Bearings AB, Agolux AB, AB Ernst Hj Rydahl Bromsbandfabrik, ATC Tape Converting AB, Lagermetall AB and Ingemar Liljenberg AB.

	2025	2024	2024	Rolling
MSEK	Q1	Q1	Full year	12 months
New orders	820	819	3 040	3 040
Net sales	817	783	3 074	3 107
EBITA	133	130	522	524
EBITA margin	16 %	17 %	17 %	17 %

In the first quarter of 2025, net sales increased by 4%, and amounted to SEK 817 million (783). Organic growth was 3.7% and currency fluctuations had a positive impact of 0.6% on net sales. The gross margin decreased by just over one percent, mainly due to the strengthening of the Swedish krona (SEK). The best performing companies are ATC Tape Converting, Agolux and Ingemar Liljenberg, which increased their sales by 31%, 26% and 25% respectively.

Incoming orders increased marginally in the first quarter of 2025 and amounted to SEK 820 million (819). Incoming orders were marginally higher than net sales.

EBITA increased by 2% to SEK 133 million (130) in the first quarter of 2025, due to increased net sales.

Finland, the Baltic States and China

OEM Automatic Fl, Akkupojat Oy, Hide-a-lite Fl, OEM Electronics Fl, Rauheat OY, OEM Automatic OU, OEM Automatic UAB, OEM Automatic SIA and OEM Automatic (Shanghai) Co. Ltd.

	2025	2024	2024	Rolling
MSEK	Q1	Q1	Full year	12 months
New orders	255	216	923	962
Net sales	246	240	955	961
EBITA	30	30	110	110
EBITA margin	12 %	12 %	12 %	12 %

In the first quarter of 2025, net sales increased by 2%, amounting to SEK 246 million (240). Organic growth amounted to 2.8%. Currency fluctuations had a negative impact on net sales of -0.4%. The best performing businesses are OEM Electronics, Rauheat and Hide-a-Lite, which increased sales by 16%, 15% and 10% respectively

Incoming orders intakes for the region increased by 18% in the first quarter of 2025, and totalled SEK 255 million (216). Incoming orders were 4% higher than net sales.

EBITA increased by 2% to SEK 30 million (30) in the first quarter of 2025, due to the higher sales.

Denmark, Norway, the British Isles and Eastern Central Europe

OEM Automatic Klitsö A/S, OEM Automatic AS, OEM Automatic Ltd, Zoedale Ltd, OEM Automatic Sp z o. o., OEM Electronics PL, OEM Automatic spol. s r.o., OEM Automatic Kft, Demesne Electrical Sales Ltd. and Demesne Electrical Sales UK Ltd.

	2025	2024	2024	Rolling
MSEK	Q1	Q1	Full year	12 months
New orders	326	315	1 203	1 214
Net sales	310	308	1 210	1 212
EBITA	38	45	173	166
EBITA margin	12 %	15 %	14 %	14 %

Net sales increased by 1% in the first quarter of 2025 to SEK 310 million (308). Organic growth amounted to 0.4%. Currency fluctuations had a positive impact on net sales of 0.4%. Compared to the previous year, the best performing businesses are OEM Automatic in Poland and OEM Automatic Klitsö in Denmark, which grew by 11% and 10% respectively.

Incoming orders in the first quarter of 2025 amounted to SEK 326 million (315), which is an increase of 3 %. Incoming orders were 5% higher than net sales.

EBITA decreased in the first quarter of 2025 by 15% to SEK 38 million (45), which is due to a lower gross margin which is, in turn, due to currency factors and customer mix.

Other financial information

Cash flow

In the first quarter of 2025, cash flow from operating activities totalled SEK 164 million (203). Total cash flow amounted to SEK 91 million (141) and was affected by investment activities of SEK -38 million (-32) and financing activities of SEK -35 million (-29).

Investments

In the first quarter of 2025, the Group's investments in fixed assets excluding acquisitions totalled SEK 7 million (3) and are attributable to property, plant and equipment of SEK 7 million (2) and intangible assets of SEK 0 million (1).

Cash and cash equivalents

As at 31 March 2025, cash and cash equivalents, consisting of cash and bank balances, amounted to SEK 635 million (379). Combined with granted and unutilised credit facilities, cash and cash equivalents amounted to SEK 1,237 million (842) as at 31 March 2025. The Group's financial, interest-bearing liabilities totalled SEK 103 million (122), of which IFRS 16 leasing liabilities amounted to SEK 86 million (72).

Intangible assets

The result for 2025 has been affected by the amortisation of intangible assets of SEK 9 million (10). As at 31 March 2025, intangible assets amounted to SEK 348 million (396).

Equity/asset ratio

As at 31 March 2025, equity/asset ratio was 74% (70).

Employees

In the first quarter of 2025, the average number of employees in the Group was 1,051 (1,058). At the end of the period, the number of employees was 1,056 (1,062).

Share repurchase

OEM has not repurchased any shares during the period. In the first quarter, the number of treasury shares held had decreased by 81,197, which is due to the utilisation to date of purchase options in the 2022 option programme. As at 31 March 2025, the company's total holding of treasury shares amounted to 289,885 shares. The holding represents 0.2% of the total number of shares. The AGM authorised a holding of up to 10% of the number of shares, which corresponds to 13,901,585.

Option programme

OEM's call option programme consists of a total of 270,500 options.

In the share-based incentive programme established by the 2024 AGM, which included approximately 60 executives and with a maximum of 200,000 call options on repurchased shares, a total of 102,000 options were subscribed. The call options were transferred at a price of SEK 13.40 per option and the purchase price for the call options amounts to SEK 135.10, which corresponds to 120 percent of the average share price during the period 6-17 May 2024. Each call option entitles the holder to acquire one Class B share during the period from 1 March to 15 June 2027.

The 2023 call options were transferred at a price of SEK 12.77 per option and the purchase price for the call options amounts to SEK 122.00, which corresponds to 120 percent of the average share price

during the period 8-19 May 2023. Each call option entitles the holder to acquire one Class B share during the period from 2 March to 15 June 2027.

The 2022 call options were transferred at a price of SEK 6.64 per option and the purchase price for the call options amounts to SEK 86.60, which corresponds to 120 percent of the average share price during the period 9-20 May 2023. Each call option entitles the holder to acquire one Class B share during the period from 1 March to 15 June 2027. In March 2025, 137,000 of 152,500 call options were redeemed. There are currenlty 15,000 outstanding call options.

Revaluation of conditional purchase considerations

The execution of previously completed acquisitions has not led to any revaluation of contingent purchase considerations recognised as liabilities. During the first quarter of 2025, SEK 31 million (30) was paid of the additional purchase price recognised as a liability for the acquisition of Demesne Electrical Sales Ltd. As at 31 March 2025, the remaining purchase considerations (both fixed and contingent) for completed acquisitions amounted to SEK 14 million (57).

Accounting policies

This summarised interim report for the Group has been prepared in accordance with the IAS 34 Interim Financial Reporting and the applicable provisions of the Swedish Annual Accounts Act. The interim report for the Parent Company has been prepared in accordance with Chapter 9 of the Swedish Annual Accounts Act, Interim Report. The same accounting principles and methods of calculation have been applied as in the last annual report to the Group and the Parent Company. There are no IFRS standards or IFRIC statements applicable from 2025 that have had a material impact on the Group's results or financial position.

Specific disclosures of the fair values of financial assets and liabilities recognised at amortised cost are not provided because the recognised values of financial assets and financial liabilities are considered to be reasonable approximations of their fair values. This is because management assessed that there has been no significant change in market interest rates or credit margins that would have a material impact on the fair value of the Group's interest-bearing liabilities. Furthermore, in the case of accounts receivable and other current assets and liabilities, the fair value is assessed to be consistent with the recognised amount due to the short-term maturity of these items.

Risks and uncertainties

The OEM Group's activities expose it to both operational and financial risks. Operational risks include competition and business risk, while financial risks include liquidity, interest rates and currency risk. The OEM Group's financial activities and financial risk management are mainly carried out by the Parent Company. For a full description of the risks affecting the Group, please refer to the 2024 Annual Report on pages 31-33 and pages 77-80. In addition to the risks and uncertainties described in the 2024 annual report, the risk of weaker global demand has been added due to the US administration's promises of increased tariffs, a generally aggressive tone towards former trading partners and allies, and not least variable proposals, which have negatively affected confidence in the US and American companies.

Transactions with affiliated parties

There were no transactions between OEM and affiliated parties that materially affected the Group's and the Parent Company's financial position and operational results during the period, except for intra-group share dividends.

Parent Company

In the first quarter of 2025, the Parent Company's net sales amounted to SEK 29 million (23), and profit after financial items totalled SEK 21 million (23). Net sales refers only to intra-group transactions. The risks and uncertainties described above for the Group also apply indirectly to the Parent Company.

Events after the end of the reporting period

On 23 April, Vierpool BV was acquired in the Netherlands, with annual sales of approximately SEK 120 million. Vierpool is a distributor of automation components and integrated solutions to machine and panel builders, installers and system integrators in the Dutch industrial and logistics sectors. This acquisition is expected to have a marginal impact on OEM's earnings in the current year.

Financial information

OEM provides financial information on the following occasions:

Interim report for the second quarter of 2025	14 July 2025
Interim report for the third quarter of 2025	16 October 2025
Year-end report for the full year of 2025	18 February 2026

Definitions

For definitions, see page 15.

Tranås, 24 April 2025

Jörgen Zahlin Managing Director and Group CEO

The report has not been subjected to a dedicated review by the company's auditors.

For further information, please contact CEO Jörgen Zahlin at 075-2424022, jorgen.zahlin@oem.se or CFO Rikard Tingvall at 075-2424015, rikard.tingvall@oem.se.

OEM International AB (publ) is obliged to make this information public in accordance with the EU Market Abuse Regulation (MAR) No. 596/2014. The information was submitted for publication through the agency of Rikard Tingvall, at 14.00 CET on 24 April 2025.

Sales and results of the regions

SALES & EARNINGS BY REGION

Net sales (SEK million)

	Jan- mar	Jan-	Q4	Q3			Full year
		mar			Q2	Trailing
	2025	2024	2024	2024	2024	12 măn	2024
Sweden, external income	817	783	823	686	782	3 107	3 074
Sweden, income from other segments	72	69	72	69	62	274	271
Finland, the Baltic States and China, external income	246	240	247	237	237	961	955
Finland, the Baltic States and China, income from other segn	27	23	22	19	19	87	83
Denmark, Norway, the British Isles and
East Central Europe, external income	310	308	290	299	312	1 212	1 210
Denmark, Norway, the British Isles and
East Central Europe, income from other segments	6	6	6	8	5	26	25
Elimination	-106	-98	-100	-96	-87	-387	-380
	1373	1331	1355	1222	1331	5 280	5 239

EBITA (SEK million)

	Jan-	Jan-
	mar	mar	Q4	03	Q2	Trailing	Full year
	2025	2024	2024	2024	2024	12 măn	2024
Sweden	133	130	151	119	121	524	522
Finland, the Baltic States and China	30	30	27	33	21	110	110
Denmark, Norway,the British Isles and
East Central Europe	38	45	37	47	44	166	173
Group functions	4	O	-9	6	-1	O	-4
EBITA	205	205	206	204	185	800	800

Operating profit (SEK million)

	Jan-	Jan-
	mar	mar	Q4	Q3	Q2	Trailing	Full year
	2025	2024	2024	2024	2024	12 măn	2024
EBITA	205	205	206	204	185	800	800
Amortisation and write-downs of acquisition-related
intangible fixed assets.
Sweden	-2	-2	-2	-2	-2	-7	-7
Finland, the Baltic States and China,
Denmark, Norway, the British Isles and
East Central Europe	-7	-7	-8	-8	-8	-30	-30
Operating profit	197	196	197	195	175	764	763

Consolidated profit/loss (SEK million)

	Jan-	Jan-
	mar	mar	Q4	03	Q2	Trailing	Full vear
	2025	2024	2024	2024	2024	12 măn	2024
Operating profit	197	196	197	195	175	764	763
Net financial items	-7	2	7	-4	0	-3	5
Pre-tax profit/(loss)	190	198	204	191	175	761	768

Specification of external income by region and product area	Sweden		Finland, the Baltic States and China,		Denmark, Norway, the British Isles and East Central Europe		Total
	Jan-	Jan-	Jan-	Jan-	Jan-	Jan-	Jan-	Jan-
	mar	mar	mar	mar	mar	mar	mar	mar
	2024	2024	2024	2024	2024	2024	2024	2024
Product Areas
Automation	329	326	147	144	222	220	698	690
Components	90	82	33	30	5	4	128	115
Lighting & Installation components	144	137	17	16	81	82	242	235
Other	254	239	49	50	2	2	305	291
	817	783	246	240	310	308	1373	1331

OEM INTERNATIONAL AB (publ) corp. no. 556184-6691, PO Box 1009, 573 28 Tranås, Tel. +46 75-2424000

Group performance and financial position

CONDENSED CONSOLIDATED STATEMENT OF INCOME (SEK MILLION)

	Jan-	Jan-
	mar	mar	Q4	Q3	Q2	Trailing	Full year
	2025	2024	2024	2024	2024	12 mån	2024
Operating income
Net sales	1373	1331	1355	1222	1331	5 280	5 239
Other operating income	0	0	O	5	1	5	5
Operating costs*
Commodities	-890	-850	-858	-789	-861	-3 398	-3 357
Staff costs	-210	-203	-202	-169	-210	-791	-784
Other expenses	-51	-57	-72	-45	-59	-227	-233
Depreciatione/amorisation of property, plant and
equipemnt and intangible fixed assets	-25	-26	-27	-28	-26	-106	-107
Operating profit	197	196	197	195	175	764	763
Net financial income/expense	-7	2	7	-4	O	-3	5
Pre-tax profit/(loss)	190	198	204	191	175	761	768
Tax	-37	-47	-46	-40	-36	-158	-162
Profit/loss for the period	153	157	158	152	139	602	606
Earnings per outstanding share, SEK **	1,10	1,13	1,14	1,09	1,01	4,34	4,37

* Attributable to shareholders of the parent company. There are no dilution effects.

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (SEK MILLION)

Other comprehensive income

Profit/loss for the period	153	157	158	152	139	602	606
Items that have been transferred or may
recycled to net income
Exchange differences for the period on
translation of overseas operations	-54	37	18	-8	-12	-56	35
ltems that can not be recycled to
net profit
Revaluation of defined-
benefit pension plans	O	O	O	-1	O	-1	-1
Other comprehensive income for the period	-54	37	18	-9	-12	-57	34
Comprehensive income for the period	gg	194	-18	336	128	545	640

Condensed consolidated statement of financial Position (sek million)

	2025-03-31	2024-03-31	2024-12-31
Fixed assets
Goodwill	251	261	260
Other intangible assets	97	135	108
Total intangible assets	348	396	369
Property, plant and equipment	420	408	435
Total property, plant and equipment	420	408	435
Deferred tax assets	3	8	4
Financial assets	1	2	2
Total financial assets	4	10	6
Total fixed assets	772	814	809
Current assets
Inventories	1021	1020	1 101
Current receivables	951	901	866
Cash and cash equivalents	635	379	557
Total current assets	2 606	2 300	2 523
Total assets	3 378	3 114	3 333
Equity	2493	2 185	2 390
Non-current interest-bearing liabilities	55	48	61
Provisions for pensions	0	2	0
Other provisions	2	2	2
Non-current non-interest-bearing liabilities	1	8	7
Deferred tax liabilities	167	162	172
Total non-current liabilities	224	222	241
Current interest-bearing liabilities	49	74	79
Current non-interest-bearing liabilities	612	633	622
Total current liabilities	661	706	701
Total equity and liabilities	3 378	3 114	3 333

Condensed consolidated statement of changes in equity (SEK million)

	2025-03-31	2024-03-31	2024-12-31
At beginning of year	2390	1991	1991
Comprehensive income for the period
Profit/loss for the period	153	157	606
Other comprehensive income for the period	-54	37	34
Comprehensive income for the period	99	194	640
Dividends paid			-243
Issued call options	4		1
At the end of the period	2493	2 185	2 390

CONDENSED CONSOLIDATED CASH FLOW STATEMENT (SEK MILLION)

	Jan- mar 2025	Jan-
		mar 2024	Q4	Q3	Q2	Trailing	Full year
			2024	2024	2024	12 mån	2024
Operating cash flows
before movements in working capital	163	177	194	194	157	708	722
Movements in working capital	1	25	-17	-86	46	-55	-31
Operating cash flows
	164	203	177	108	204	653	692
Acquisition of subsidiaries
net effet on cash and cash equivalents	-31	-30	-2	0	-3	-4	-34
Acquisition of intangible fixed assets	0	-1	-1	-1	-3	-4	-5
Acquisition of property, plant and equipment	-7	-2	-12	-9	-7	-34	-30
Sales of property, plant and equipment	1	0	O	0	0	1	1
Investing cash flows	-38	-32	-14	-9	-12	-73	-68
Financing cash flows
- Repayment of lease liabilities	-11	-10	-11	-11	-10	-43	-42
- Change in bank overdrafts	-28	-20	-8	11	-5	-31	-22
- Call options	4				O	4	O
- Dividends paid					-243	-243	-243
Financing cash flow	-35	-29	-19	-1	-257	-313	-307
Cash flow for the period	91	141	144	ರಿ8	-66	267	317
Cash and cash equivalents at the beginning of the period	557	233	413	311	379	1661	233
Exchange rate difference	-13	6	O	3	-2	-12	7
Cash and cash equivalents at the end of the period	635	379	557	413	311	1916	557

KEY PERFORMANCE INDICATORS

	Jan- Jan-			02 2024	Trailing 12 mån	Full year 2024
mar 2075	mar	Q4	03
	2024	2024	2024
3,1	-1,7	4,6	2,0	2,7	3,1	1,8
14,3	14,7	14,5	16,0	13,2	14,5	14,6
14,9	15,4	15,2	16,7	13,9	15,2	15,3
6,3	7,5	6,4	6,7	7,1	26,5	27,7
8,3	9,5	8,6	8,3	8,9	34,1	35,3
6,2	6,8	6,5	6,2	6,4	25,3	25,9
0,04	0,06					0,06
73,8	70,2					71,7
1,10	1,13	1,14	1,09	1,01	4,34	4,37
1,10	1,13	1,14	1,09	1,00	4,33	4,36
17,93	15,72					17,19
138 672	138 644	138 644	138 644	138 644	138 644	138 644
139 016	139 016	139 016	139 016	139 016	139 016	139 016

* Attributable to shareholders of the parent company. There are no dilution effects.

Parent company results and financial position

CONDENSED INCOME STATEMENT OF THE PARENT COMPANY (SEK MILLION)

	Jan-	Jan-
	mar	mar	Q4	Q3	Q2	Trailing	Full year
	2025	2024	2024	2024	2024	12 mån	2024
Net sales	29	23	28	24	29	110	104
Other operating income
Operating costs	-25	-20	-34	-18	-29	-106	-101
Depreciation	-1	-1	-	-1	-1	-4	-4
Operating profit	3	2	-7	5	-1	O	-1
Income from investments
in Group companies	17	22	95	119	8	239	243
Other financial income/expense, Net	2	0	7	4	2	15	13
Profit/loss after financial items	21	23	95	128	9	254	255
Year-end appropriations			382			382	382
Pre-tax profit/(loss)	21	23	477	128	9	636	637
Tax	-7	0	-85	0	0	-86	-85
Profit/loss for the period	20	23	392	128	ி	550	552

Comprehensive income for the period corresponds with the profit/loss for the period.

CONDENSED BALANCE SHEET OF THE PARENT COMPANY (SEK MILLION)

Assets	2025-03-31	2024-03-31	2024-12-31
Intangible fixed assets	14	12	14
Property, plant and equipment	18	18	18
Financial assets	738	741	736
Total fixed assets	769	770	768
Current receivables	730	748	830
Cash on hand and demand deposits	511	183	456
Total current assets	1241	930	1287
Total assets	2 011	1 701	2 054
Equity and liabilities
Equity
Non-distributable equity	71	71	71
Distributable equity	1166	853	1141
Total shareholders' equity	1237	924	1 212
Untaxed reserves	611	542	611
Deferred tax liabilities	2	2	2
Non-current interest-bearing liabilities	0	-	0
Non-current non-interest-bearing liabilities	1	8	7
Total non-current liabilities	1	8	7
Current interest-bearing liabilities	O	O	O
Current non-interest-bearing liabilities	160	225	222
Total current liabilities	161	225	222
Total equity and liabilities	2 011	1701	2 054

Notes

Segment reporting is presented on pages 5, 6 and 10, and disclosures on the fair value of financial instruments and accounting policies are presented on pages 7, 8 and 9.

Definitions

In addition to the conventional financial performance measurements established by IFRS, OEM uses the concepts of Organic Growth and EBITA/EBITA margin, the definitions of which are described below. The reason for this is that OEM wishes to increase the comparability of sales between different time periods without the impact of currency trends or acquisitions, and to be able to summarise the companies' operations in terms of profit and margins adjusted for depreciation arising from acquisitions.

Organic growth

The change in total revenue for the period, adjusted for acquisitions, disposals and foreign exchange, compared with total revenue for the comparative period.

Debt to equity ratio Interest-bearing liabilities divided by equity

EBITA

Operating result before amortisation and impairment of intangible assets arising from business acquisitions Reconciliation of EBITA calculation is presented on page 11.

EBITA margin EBITA divided by net sales

Return on capital employed EBITA plus financial income as a percentage of capital employed

Capital employed Balance sheet total minus non-interest-bearing liabilities and provisions

Return on total capital EBITA plus financial income as a percentage of average total capital

Return on equity Result for the year as a percentage of average equity

One of Europe's leading technology companies with 35 business operating units in 15 countries.

For 50 years, OEM has had the goal of being a value-creating link between customers and the manufacturers of industrial components and systems. In that time, the company has grown from a small family business in Tranås in southern Sweden to an international technology trading group with operations in 15 countries in northern Europe, eastern central Europe, the British Isles and China.

OEM works with more than 400 leading and specialised manufacturers, and manages their sales in selected markets. OEM's range consists of more than 60,000 products in the areas of electrical components, machine components & cables, pressurised & hydraulic components, motors, bearings & brakes, appliance components and installation components. The Group has more than 30,000 clients, mainly in the manufacturing industry. The company has a high level of expertise to help customers streamline their selection and purchasing of the

OEM INTERNATIONAL AB (publ) org.nr. 556184-6691. Box 1009, 573 28 Tranas +46 75-242 40 00