OEM International

Earnings Release • Feb 17, 2022

Financial Statement

Full year 2021

Interim report Q4 2021 OEM International

Fourth quarter 2021

• Incoming orders rose 29% to SEK 1,159 million (897)
• ● Net sales rose 16% to SEK 1,004 million (868)
• Operating profit rose 35% to SEK 141 million (104)
• EBITA rose 34% to SEK 143 million (107)
• Profit after tax rose 41% to SEK 111 million (79)
• Earnings per share were SEK 1.60 (1.14)

January – December 2021

• Incoming orders rose 24% to SEK 4,177 million (3,368)
• ● Net sales rose 15% to SEK 3,774 million (3,283)
• Operating profit rose 42% to SEK 578 million (408)
• EBITA rose 40% to SEK 590 million (422)
• Profit after tax rose 44% to SEK 457 million (317)
• Earnings per share were SEK 6.59 (4.58)
• ● The Board proposes an ordinary dividend of SEK 2.75 per share (2.50)

● The Board recommends that shareholders vote in favour of the resolution at the Annual General Meeting to transfer SEK 3.25 per share to the shareholders via an automatic redemption process

Post balance sheet events

OEM INTERNATIONAL AB (publ) org.nr. 556184-6691, Box 1009, 573 28 Tranås, tel. +46 75-242 40 00 1

● Acquisition of Demesne Electrical Sales Ltd, Ireland, with an annual turnover of SEK 205 million, was made in January 2022

A strong end to the year meant that fourth quarter sales and incoming orders reported the highest figures this year. This strong development can be attributed to generally good demand and the positive impact that price rises have had on performance. However, due to the ongoing challenges of obtaining certain supplies, the order book is larger than usual.

Incoming orders rose 29 per cent and net sales rose 16 per cent. Neither currencies nor acquisitions had any impact on net sales, which meant that fourth quarter organic growth was 16 per cent.

In the quarter, operating profit (EBITA) rose 34 per cent and the EBITA margin climbed to 14.3 per cent (12.4). This strong performance is attributable to an increase in both sales and gross margin.

Sales, incoming orders and earnings reached new record highs in the full 2021 fiscal year. Sales rose 15 per cent, with exchange rate movements having a 2 per cent negative impact which produced organic growth of 17 per cent. Incoming orders rose 24 per cent, resulting in the largest order book on record. Operating profit (EBITA) rose 40 per cent, delivering an operating margin of 15.6 per cent (12.9).

Demand remained strong in Region Sweden, which generated organic growth of 15 per cent during the quarter. Strongest sales growth was delivered in the quarter by Elektro Elco, Internordic, OEM Electronics and Svenska Batteripoolen.

Demand was also good in Region Finland, the Baltic states and China and organic growth reached 21 per cent in the quarter. The entities with the strongest growth performance were OEM Automatic, Akkupojat, RauHeat and the Baltic operations.

Region Denmark, Norway, UK and East Central Europe reported organic growth of 9 per cent in the quarter, which was down on previous quarters. The UK operations continue to report strong growth rates, as do the operations in the Czech Republic and Slovakia.

The companies have, despite a shortage of components and long delivery times, successfully minimised disruptions in the supply chains. In many cases, working in close contact with customers has resulted in more business, which has been a contributor to this positive performance.

At the beginning of January 2022, Demesne Electrical in Ireland was acquired. The company is a leading distributor of electrical control, energy-saving and installation products. In 2021, the company had an annual revenue of approximately SEK 205 million with operating profit of about SEK 26 million. Its business model aligns well with OEM's own and the acquisition gives us a strong position in a new and interesting market. Demesne is one of many companies analyzed in 2021.

The pandemic has presented a variety of challenges to the organisation, whose ability to adapt and be committed has once again been evident. The employees´ creative collaboration with customers and suppliers has made it possible to maintain the level of service and, in many cases, strengthened market positions and increased the market share.

Jörgen Zahlin Managing Director and CEO

Incoming orders increased by 29% to SEK 1,159 million

(897) in the fourth quarter of 2021. Incoming orders in the fourth quarter were 15% higher than net sales.

For the full 2021 year, incoming orders increased by

24% to SEK 4,177 million (3,368).

At SEK 926 million (514) on 31 December 2021, the order book was 80% up on the previous year.

Net sales in the fourth quarter of 2021 increased by 16% to SEK 1,004 million (868). Acquisitions and exchange rate fluctuations had no impact on net sales in the fourth quarter.

Net sales increased by 15% to SEK 3,774 million (3,283) in the full-year 2021. Excluding the negative 2% impact from movements in exchange rates, net sales showed a 17% increase. Acquisitions had no impact on net sales in the full-year 2021.

The Swedish operations of Internordic Bearings, Elektro Elco and Svenska Batteripoolen, the operations of Finnish OEM Automatic, RauHeat, Akkupojat, Components and Hide-a-lite and the operations in China, the UK, Slovakia and the Baltic states reported the highest percentage growth in net sales compared with last year.

There were marginal percentage shifts across the regions, with sales increasing by 1 percentage point in Region Sweden, while sales fell by 1 percentage point in Region Denmark, Norway, UK and East Central Europe. The market share of Region Finland, the Baltic states and China remained the same.

In the fourth quarter of 2021, EBITA, operating profit before amortisation and impairment of acquisition-related intangible fixed assets, rose 34% to SEK 143 million (107). The EBITA margin stood at 14.3% (12.4%) in the fourth quarter.

EBITA increased by 40% to SEK 590 million (422) in the full-year 2021. The EBITA margin stood at 15.6% (12.9%) in the same period.

In the fourth quarter of 2021, operating profit rose 35% to SEK 141 million (104). Operating profit was up 42% to SEK 578 million (408) cumulative for the full-year 2021. The fourth quarter operating margin was 14.0% (12.0%) and cumulative for the full-year 2021 was 15.3% (12.4%).

Profit after tax in the full-year 2021 rose 44% to SEK 457 million (317).

Earnings per share in the full-year 2021 were SEK 6.59 (4.58).

The return on equity in the fourth quarter of 2021 was 7.2% compared with 6.0% in the year-ago quarter.

For the full year of 2021, return on equity was 33.4%, which is well above the 20% target.

Shareholders' equity amounted to SEK 1,374 million (1,366) with an equity/assets ratio of 67% (69%) on 31 December 2021.

SEK million	2021 Q4	2020 Q4	2021 Full year	2020 Full year
Incoming orders	720	562	2,559	2,085
Net sales	635	551	2,325	2013
EBITA	89	85	398	303
EBITA margin	14%	15%	17%	15%

In 2021, net sales rose 16% to SEK 2,325 million (2,013). Foreign exchange movements affected net sales negatively by 2%, which resulted in organic growth of 18% in the region. The majority of operations have high rates of growth and improved profitability. The operations reporting strongest growth are Internordic Bearings, which increased sales by 36%, Elektro Elco by 28% and Svenska Batteripoolen by 24%. OEM Automatic, the Group's largest company, saw an 11% year-on-year increase in sales.

In 2021, incoming orders rose 23% to SEK 2,559 million (2,085). Incoming orders were 10% higher than net sales.

In 2021, EBITA rose 32% to SEK 398 million (303), due primarily to growth in sales with a higher contribution margin.

SEK million	2021 Q4	2020 Q4	2021 Full year	2020 Full year
Incoming orders	252	180	874	698
Net sales	211	174	791	695
EBITA	25	16	118	83
EBITA margin	12 %	9%	15%	12 %

In 2021, net sales rose 14% to SEK 791 million (695). Foreign exchange movements affected net sales negatively by 3%, which means that organic growth reached 17%. The operations that reported strongest growth are RauHeat, Akkupojat and Hide-a-lite, which increased sales by 25%, 24% and 22% respectively. The entity in China increased sales by 22% and the entities in the Baltic states by 20%. The largest entity in the region, OEM Automatic, increased sales by 13%.

In 2021, incoming orders for the region rose 25% to SEK 874 million (698). During 2021, incoming orders were 10% higher than net sales.

EBITA rose 42% to SEK 118 million (83), due primarily to growth in net sales with a higher contribution margin.

SEK million	2021 Q4	2020 Q4	2021 Full year	2020 Full year
Incoming orders	187	154	744	586
Net sales	156	142	655	575
EBITA	10	7	56	39
EBITA margin	6%	5%	9%	7%

In 2021, net sales rose 14% to SEK 655 million (575). Foreign exchange movements had an adverse 2% impact on net sales, while revenue from acquisitions boosted nets sales by 2%. This means that organic growth in the region reached 14%. Sales increased by 30% for the UK operations and by 25% for the operations in Slovakia.

In 2021, incoming orders rose 27% to SEK 744 million (586). Incoming orders were 14% higher than net sales.

EBITA rose 43% to SEK 56 million (39). This was mainly a result of higher net sales and a higher contribution margin.

Operating cash flow was SEK 319 million (469) in the full year. Cash flow totalled SEK -233 million (337) in 2021 and was affected by investment activities to an amount of SEK -54 million (-34). The cash flow was also affected by dividends to an amount of SEK -173 million (-) and redemption of shares to SEK -289 million (-).

Group investment in fixed assets in 2021 totalled SEK 54 million (23). Property, machinery and equipment accounted for SEK 51 million (8), and intangible assets for SEK 2.8 million (15), SEK 2.4 million (15) of which come from asset acquisitions that have been made. In July, real estate was purchased in Finland for EUR 4 million through a real estate company.

Cash and cash equivalents, comprising cash and bank balances, amounted to SEK 145 million (376) on 31 December 2021. Cash and cash equivalents, together with committed undrawn credit facilities, amounted to SEK 549 million (762) on 31 December 2021. The Group's interest-bearing financial liabilities totalled SEK 90 million (103), of which SEK 47 million (61) are liabilities recognised in accordance with IFRS 16 leasing.

Amortisation of intangible assets totalling SEK 15 million (19) has been charged to the income statement for the full-year 2021. On 31 December 2021, intangible assets amounted to SEK 177 million (187).

On 31 December 2021, the equity/assets ratio was 67% (69%).

The Group's average number of employees in 2021 was 886 (894). At the end of the period, the number of employees was 898 (885).

The company has not repurchased any shares during the period. On 31 December 2021, the company held a total of 185,541 treasury shares. This represents 0.3% of the total number of shares. The authorisation of the Annual General Meeting is for the repurchase of up to 10% of the shares, which is 6,950,792 shares.

On 1 October 2021, OEM acquired the customer base and inventory of the division of Norwegian Export Import AS in Norway that is engaged in the trading of jump starters. The division reports revenues of approximately SEK 5 million. Sales will be conducted through Svenska Batteripoolen AB which is part of Region Sweden. The consideration for the assets acquired was SEK 2.4 million, plus contingent considerations estimated at SEK 0.8 million, based on how the business develops between October 2021 and September 2022. As a result of the acquisition, other intangible fixed assets have increased by SEK 2.4 million and inventories by SEK 0.03 million. Other intangible fixed assets relate to customer relationships that will be amortised over a five-year period.

Contingent consideration recognised as a liability was remeasured based on the development of previously acquired businesses and was subsequently reduced by SEK -1.1 million (-5.2). This has been recognised in Other Operating Income and had a positive SEK 1.1 million (5.2) effect on the operating profit in 2021. Acquisition-related consideration liabilities (both absolute and contingent) on 31 December 2021 totalled SEK 4.1 million (5.4).

Denna delårsrapport i sammandrag för koncernen har upprättats i enlighet med IAS 34 Delårsrapportering samt tillämpliga bestämmelser i Årsredovisningslagen. The interim report for the Parent Company has been prepared in compliance with Chapter 9, Interim Reports, of the Swedish Annual Accounts Act. The Group and the Parent Company have applied the same accounting policies and basis of preparation as in the latest annual report. No International Financial Reporting Standards (IFRS) or International Financial Reporting Interpretations Committee (IFRIC) interpretations adopted in 2021 have had a significant effect on the reported results or financial position of the Group.

There are no separate disclosures of the fair values of financial assets and liabilities measured at amortised cost because the carrying amounts of financial assets and financial liabilities are considered to be reasonable approximations of their fair values. This is because the company management believes there have been no material fluctuations in market interest rates or credit spreads that would have a material impact on the fair value of the Group's interest-bearing liabilities. Furthermore, the fair value of trade and other current receivables and payables is assumed to approximate their carrying amount given their short-term nature.

Financial support received from the government for short-term work and sick pay in Sweden and government funding for temporary staff redundancies in Denmark, Norway and the UK are recognised as revenue in Other Operating Income in the condensed consolidated statement of income. Reduced social security contributions in Sweden, Poland and Finland are recognised as cost reductions under staff costs.

The OEM Group is exposed to both business-related risks and financial risks through its activities. Business-related risks include competition and operational risks, and financial risks include liquidity risk, interest rate risk and currency risk. The OEM Group's financial activities and management of financial risks is primarily performed in the Parent Company. For a complete report on the risks affecting the Group, please refer to the Annual Report for 2020, pages 32-33 and pages 78-81.

In addition to the risks and uncertainties set out in the 2020 Annual Report and the continuing uncertainty about the Covid-19 pandemic, the shortage of materials in certain sectors is expected to continue to impact the capacity of our supply chains, resulting in longer lead times. The imbalance in the transport sector has also led to a significant increase in freight costs, which is expected to continue to affect margins in the coming quarters.

No transactions between OEM and related parties have been entered into that materially affect the financial position and performance of the Group or the Parent Company during the period, with the exception of inter-company dividends, including dividends and automatic redemption procedure to Parent Company shareholders.

Net sales for the Parent Company in the full-year 2021 totalled SEK 83 million (57) and profit after financial items was SEK 106 million (55). Net sales relate entirely to inter-company transactions. SEK 173 million (-) was paid in dividends and shares totalling SEK 289 million (-) were redeemed. The foregoing risks and uncertainties specified for the Group also apply indirectly to the Parent Company.

On 13 January, OEM acquired Demesne Electrical Sales Limited in Ireland. The company generates annual sales of approximately SEK 205 million. Demesne is Ireland's leading independent importer and distributor of electrical control, switch-gear, energy-saving and installation products. The acquisition is expected to have a positive impact on OEM's profit for 2022.

Sales in 2021 have reached record levels, due in part to the industry's recovery from last year's slump in production. Restrictions and the spread of the virus meant that the Group limited its travel and marketing activities, which resulted in lower costs. Business-related travel was resumed during the latter part of the second quarter and increased gradually during the autumn. From the beginning of October, all Swedish entities returned to work at their respective offices and the companies in the other markets have followed local recommendations. Management continues to monitor developments related to the pandemic and adapts its operations accordingly.

The Nomination Committee for the Annual General Meeting on 26 April 2022 is composed of: Petter Stillström, AB Traction (Chair) Richard Pantzar, Orvaus AB Mattias Franzén Agne Svenberg The Nomination Committee can be contacted through Petter Stillström, tel. +46 (0)70-747 56 61 or via e-mail petter.stillstrom@traction.se

The Board proposes an ordinary dividend of SEK 2.75 per share (2.50). The proposed dividend amounts to

SEK 191 million (174).

Considering OEM International's strong financial position and as a step in the process of changing the company's

capital structure, the Board recommends that, in addition to an ordinary dividend, shareholders vote in favour of the resolution at the Annual General Meeting

to transfer the equivalent of SEK 3.25 per share to the shareholders. This corresponds to a transfer of SEK 226 million, which the Board proposes be implemented via an automatic redemption process. Details

of the redemption scheme will be given in a separate brochure and in the Annual Report.

The 2021 Annual Report will be available on 23 March 2022 at Head Office and on the company's website, where it can be downloaded as a pdf file. A copy can be ordered from the company by email: elin.carlback@oem.se or by calling +46 (0)75-242 40 14.

OEM will release financial information as follows:
26 April 2022
26 April 2022
13 July 2022
20 October 2022
16 February 2023

Definitions can be found on page 16.

Tranås, Sweden, 17 February 2022

Jörgen Zahlin Managing Director and Chief Executive Officer

This report has not been separately audited by the company's auditors.

For further information, please contact the Managing Director, Jörgen Zahlin, on +46 (0)75-242 40 22, or via email at jorgen.zahlin@oem.se or the CFO, Johan Broman, on +46 (0)75-242 40 02, or via email at johan.broman@oem.se.

This information is of such a nature that OEM International AB (publ) is required to publish it in compliance with the Market Abuse Regulation (MAR) EU Directive No. 596/2014. The information was provided for publication on 17 February 2022 at 14.00 CET by Johan Broman.

SALES & EARNINGS BY REGION

Net sales (SEK million)

SALES & EARNINGS BY REGION
Net sales (SEK million)
	Jan-	Jan
	dec	dec	Q 4	Q 3	Q2	Q 1	Q 4
	2021	2020	2021	2021	2021	2021	2020
Sweden, external income	2 325	2 013	635	525	593	572	551
Sweden, income from other segments	172	142	43	42	44	42	36
Finland, the Baltic States and China, external income	791	695	211	195	207	178	174
Finland, the Baltic States and China, income from other segments	13	7	4	2	4	4	2
Denmark, Norway, the United Kingdom and				0
East Central Europe, external income	655	575	156	173	168	157	142
Denmark, Norway, the United Kingdom and				0
East Central Europe, income from other segments	4	4	1	1	1	1	1
Elimination	-187	-153	-47	-44	-49	-47	-38
	3 774	3 283	1 004	895	968	907	868

EBITA (MSEK)

	3 774	3 283	1 004	895	968	907	868
EBITA (MSEK)
	Jan-	Jan
	dec	dec	Q 4	Q 3	Q2	Q 1	Q 4
	2021	2020	2021	2021	2021	2021	2020
Sweden	398	303	89	98	110	101	85
Finland, the Baltic States and China	118	83	25	34	32	27	16
Denmark, Norway, the United Kingdom and
East Central Europe	56	39	10	18	14	13	7
Group functions	18	-3	19	2	0	-3	-1
	590	422	143	152	156	138	107

Operating profit (SEK million)

	590	422	143	152	156	138	107
Operating profit (SEK million)
	Jan-	Jan
	dec	dec	Q 4	Q 3	Q2	Q 1	Q 4
	2021	2020	2021	2021	2021	2021	2020
EBITA	590	422	143	152	156	138	107
Amortisation and write-downs of acquisition-related
intangible fixed assets.
Sweden	-4	-4	-1	-1	-1	-1	-1
Finland, the Baltic States and China,	-6	-7	-1	-2	-2	-2	-2
Denmark, Norway, the United Kingdom and
East Central Europe	-3	-3	-1	-1	-1	-1	-1
Operating profit	578	408	141	149	153	135	104

Consolidated profit/loss (SEK million)

Operating profit	578	408	141	149	153	135	104
Consolidated profit/loss (SEK million)
	Jan-	Jan
	dec	dec	Q 4	Q 3	Q2	Q 1	Q 4
	2021	2020	2021	2021	2021	2021	2020
Operating profit	578	408	141	149	153	135	104
Net financial items	-2	-8	-1	0	-2	0	-4
Pre-tax profit/(loss)	576	401	140	149	151	136	101

Specification of external income by region and product area	Sweden		Finland, the Baltic States and China,		Denmark, Norway, the United Kingdom and East Central Europé		Total
	Jan-	Jan-	Jan-	Jan-	Jan-	Jan-	Jan-	Jan
	dec	dec	dec	dec	dec	dec	dec	dec
	2021	2020	2021	2020	2021	2020	2021	2020
Product Areas
Automation	808	731	464	418	638	560	1 909	1 708
Components	356	298	86	73	17	15	459	387
Lighting & Installation components	496	403	50	42	-	-	545	445
Other	666	580	192	162	-	-	858	743
	2 325	2 013	791	695	655	575	3 771	3 283

CONDENSED CONSOLIDATED STATEMENT OF INCOME (SEK MILLION)

CONDENSED CONSOLIDATED STATEMENT OF INCOME (SEK MILLION)
	Jan-	Jan
	dec	dec	Q 4	Q 3	Q2	Q 1	Q 4
	2021	2020	2021	2021	2021	2021	2020
Operating income
Net sales	3 774	3 283	1 004	895	968	907	868
Other operating income	4	15	0	2	2	0	2
Operating costs*
Commodities	-2 406	-2 139	-641	-571	-617	-577	-572
Staff costs	-594	-552	-163	-132	-151	-148	-145
Other expenses	-130	-125	-40	-29	-30	-30	-30
Depreciatione/amorisation of property, plant and
equipemnt and intangible fixed assets	-69	-74	-19	-16	-18	-17	-18
Operating profit	578	408	141	149	153	135	104
Net financial income/expense	-2	-8	-1	0	-2	0	-4
Pre-tax profit/(loss)	576	401	140	149	151	136	101
Tax	-119	-84	-29	-31	-32	-27	-22
Profit/loss for the period	457	317	111	119	119	108	79
Earnings per outstanding share, SEK**	6,59	4,58	1,60	1,71	1,72	1,56	1,14

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

** The key indicator are corrected for the 4:1 share split and automatic redemption of each fourth share carried out Q2 2021.

Prior periods have been adjusted with a factor of 3 since that finacial implication of the transaction is a 3:1 split combined with an extra dividend.

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (SEK MILLION)

EBITA	590	422	143	152	156	138	107
Comprehensive income for the period	470	299	115	111	116	118	62
Other comprehensive income for the period	13	-18	4	3	-3	9	-17
benefit pension plans	1	0	0	0	0	1	-
Revaluation of defined
net profit
Items that can not be recycled to
translation of overseas operations	12	-18	4	2	-3	9	-17
Exchange differences for the period on
recycled to net income
Items that have been transferred or may
Profit/loss for the period	457	317	111	119	119	108	79
Other comprehensive income

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (SEK MILLION)

	2021-12-31	2020-12-31
Fixed assets
Goodwill	147	146
Other intangible assets	30	41
Total intangible assets	177	187
Property, plant and equipment	344	324
Total property, plant and equipment	344	324
Deferred tax assets	7	8
Financial assets	0	0
Total financial assets	7	9
Total fixed assets	528	520

Current assets

Inventories	738	579
Current receivables	644	517
Cash and cash equivalents	145	376
Total current assets	1 526	1 472
Total assets	2 054	1 992
Equity	1 374	1 366
Non-current interest-bearing liabilities	30	42
Provisions for pensions	1	2
Other provisions	2	2
Non-current non-interest-bearing liabilities	-	4
Deferred tax liabilities	105	94
Total non-current liabilities	139	145
Current interest-bearing liabilities	60	61
Current non-interest-bearing liabilities	481	420
Total current liabilities	541	481
Total equity and liabilities	2 054	1 992

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (SEK MILLION)

	44 561	2020-12-31
At beginning of year	1 366	1 066
Comprehensive income for the period
Profit/loss for the period	457	317
Other comprehensive income for the period	13	-18
Comprehensive income for the period	470	299
Dividends paid	-173	-
Repurchase of shares	-289	-
At the end of the period	1 374	1 366

CONDENSED CONSOLIDATED CASH FLOW STATEMENT (SEK MILLION)

CONDENSED CONSOLIDATED CASH FLOW STATEMENT (SEK MILLION)
	Jan-	Jan
	dec	dec	Q 4	Q 3	Q2	Q 1	Q 4
	2021	2020	2021	2021	2021	2021	2020
Operating cash flows
before movements in working capital	530	403	138	141	125	126	107
Movements in working capital	-211	65	-57	-67	-9	-77	48
Operating cash flows	319	469	80	74	116	49	156
Acquisition of subsidiaries
net effet on cash and cash equivalents	-1	-26	-1	-	-	-	-1
Acquisition of intangible fixed assets	-3	0	-2	-	0	0	0
Acquisition of property, plant and equipment	-51	-9	-6	-42	-2	-1	-3
Sales of property, plant and equipment	1	0	0	0	0	0	0
Investing cash flows	-54	-34	-9	-42	-2	-1	-4
Financing cash flows
- Loan raised	1	3	-	-	0	1	0
- Loan amortisation	-6	-2	-2	-1	0	-3	-1
- Repayment of lease liabilities	-34	-35	-8	-9	-9	-8	-9
- Change in bank overdrafts	3	-63	-40	17	17	9	6
- Dividends paid	-173	-	-	-	-173	-	-
- Repurchase of shares	-289	-	-	-	-289	-	-
Financing cash flow	-498	-97	-50	7	-453	-2	-4
Cash flow for the period	-233	337	21	39	-339	46	148
Cash and cash equivalents at the beginning of the period	376	42	122	84	424	376	230
Exchange rate difference	2	-3	1	0	-1	2	-2
Cash and cash equivalents at the end of the period	145	376	145	122	84	424	376

KEY PERFORMANCE INDICATORS

145	376	145	122	84	424	376
						Q 4
						2020
						6,0
						7,5
29,2	22,7	6,5	7,2	8,8	6,7	5,4
66,9	68,6
6,59	4,58	1,60	1,71	1,72	1,56	1,14
6,58	4,56	1,60	1,71	1,71	1,56	1,13
						69 322
69 508	69 508	69 508	69 508	69 508	69 508	69 508
15,3	12,4	14,0	16,7	15,8	14,9	12,0
15,6	12,9	14,3	17,0	16,2	15,2	12,4
	Jan- dec 2021 33,4 41,1 19,77 69 322	Jan dec 2020 26,1 31,9 19,65 69 322	Q 4 2021 7,2 9,3 69 322	Q 3 2021 8,0 9,7 69 322	Q2 2021 10,6 12,8 69 322	Q 1 2021 7,6 9,3 69 322

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

** The key indicator are corrected for the 4:1 share split and automatic redemption of each fourth share carried out Q2 2021.

Prior periods have been adjusted with a factor of 3 since that finacial implication of the transaction is a 3:1 split combined with an extra dividend.

CONDENSED INCOME STATEMENT OF THE PARENT COMPANY (SEK MILLION)

CONDENSED INCOME STATEMENT OF THE PARENT COMPANY (SEK MILLION)
	Jan- dec 2021	Jan dec 2020	Q 4 2021	Q 3 2021	Q2 2021	Q 1 2021	Q 4 2020
Net sales	83	57	38	14	17	14	14
Other operating income	-	0	-	-	-	-	0
Operating costs	-62	-54	-16	-13	-17	-15	-15
Depreciation	-4	-7	-1	-1	-1	-1	-1
Operating profit	18	-3	20	0	-1	-2	-3
Income from investments
in Group companies	90	58	0	-	84	6	-2
Other financial income/expense, Net	-1	0	0	0	-1	0	0
Profit/loss after financial items	106	55	20	0	82	4	-4
Year-end appropriations	299	225	299	-	-	-	229
Pre-tax profit/(loss)	406	280	320	0	82	4	225
Tax	-66	-48	-67	0	1	0	-49
Profit/loss for the period	339	232	253	0	83	4	176

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

CONDENSED BALANCE SHEET OF THE PARENT COMPANY (SEK MILLION)

Assets	2021-12-31	2020-12-31
Intangible fixed assets	3	5
Property, plant and equipment	17	17
Financial assets	412	374
Total fixed assets	432	397
Current receivables	678	534
Cash on hand and demand deposits	15	260
Total current assets	693	795
Total assets	1 125	1 191
Equity and liabilities
Equity
Non-distributable equity	74	76
Distributable equity	519	640
Total shareholders' equity	593	716
Untaxed reserves	390	333
Deferred tax liabilities	2	2
Non-current non-interest-bearing liabilities	-	2
Total non-current liabilities	-	2
Current interest-bearing liabilities	-	-
Current non-interest-bearing liabilities	140	139
Total current liabilities	140	139
Total equity and liabilities	1 125	1 191

Segment reporting is presented on page 5, 6 and page 11, disclosures about fair value of financial instruments and accounting policies are presented on page 8.

In addition to the conventional financial performance measures established by IFRS, OEM uses the terms Organic growth and EBITA/EBITA margin, the definitions of which are given below. The reason is that OEM wants to provide clearer comparability of sales performance between periods, without the effects of currency movements or acquisitions, and be able to summarise the companies' operations with regard to profit and margins, excluding amortisation and depreciation that arose on acquisition.

Organic growth

The change in total revenue in the period, adjusted for acquisitions, sales and currency movements, measured against the total revenue in the comparative period.

EBITA Operating profit before amortisation of acquisition-related intangible fixed assets A reconciliation of the calculation of EBITA is presented on page 11.

EBITA margin EBITA divided by net sales

Return on capital employed

EBITA plus finance income as a percentage of average capital employed

Capital employed

Total assets less non-interest-bearing liabilities and provisions

Return on total capital

EBITA plus finance income as a percentage of average total capital

Return on Equity

Profit for the year divided by average shareholders' equity

One of Europe's leading technology trading companies with 37 operating entities in 15 countries

Interim report Q4 2021 OEM International

For 40 years, OEM's idea has been to serve as a link that creates value between customers and manufacturers of industrial components and systems. Over the years, the company has grown from a small, family-owned business in Tranås in southern Sweden into an international technology trading group operating in 14 countries in northern Europe, Central Eastern Europe, the UK and China. OEM has partnerships with more than 400 leading and specialist manufacturers and is responsible for their sales in selected markets. Its range comprises more than 60,000 products in the areas of electrical components, flow technology, motors, transmissions and brakes, ball bearings and seals, appliance components and installation components. The Group has a customer base of more than 30,000 businesses, primarily in the manufacturing sector. The company's high level of expertise enables it to help customers increase purchasing efficiency and choose the right components

OEM INTERNATIONAL AB (publ) org.nr. 556184-6691, Box 1009, 573 28 Tranås, tel. +46 75-242 40 00 17