OEM International

Quarterly Report • Jul 13, 2015

Interim report Q2 2015

Second quarter 2015

• Incoming orders rose 17 % till 545 MSEK (466)
• Net sales rose 20% to SEK 557 million (466)
• Operating profit (EBITA) rose 21% to SEK 56 million (46)
• Profit before tax rose 22% to SEK 49 million (40)
• Profit after tax rose 25% to SEK 38 million (31)
• Earnings per share were SEK 1.66 (1.33)
• Acquisition of Scannotec OY, Finland

January – June 2015

• Incoming orders rose 19% to SEK 1,131 million (952)
• Net sales rose 20% to SEK 1,120 million (932)
• Operating profit (EBITA) rose 28% to SEK 118 million (93)
• Profit before tax rose 29% to SEK 106 million (82)
• Profit after tax rose 31% to SEK 82 million (63)
• Earnings per share were SEK 3.56 (2.71)

Stable growth in the second quarter

OEM's growth continued at the same pace throughout the second quarter as at the beginning of the year. Incoming orders remain on an upward trajectory, having risen 17%, and we are seeing an even stronger increase in sales, which are up 20% over the year-ago quarter. Organic growth was 6%, excluding the impact of foreign currency and acquisitions, which means that we are continuously taking new business and increasing our market share. EBITA increased by 21% in the second quarter, which means we are seeing growth in the profit level too.

Growth across the regions

Growth remains strong in Region Sweden, particularly when bearing in mind that we are in a mature market which is characterised by some offshoring of business activities. A good example is OEM Automatic, the Group's oldest and largest company, which has reported 13% growth for the first six months of the year. Our businesses in the Region have clearly achieved positive growth across the board.

In relation to the current state of the economy, growth has remained strong in Region Finland/Baltic states. The Battery and Vision product areas are showing the strongest growth in Finland. We have lower margins in both of these product areas in relation to other operations, which has affected the region's key figures. Demand is good in the Baltic states where growth was 11% in the first six months. We have also continued our conscious focus on the Region by investing in both the organisation and marketing activities. Consequently, the Region's earnings growth is not keeping up with the sales growth. Nonetheless, we are convinced that these initiatives will lead to future growth, which is the focus for this Region at present.

The picture for our third region has altered slightly since our last report. Denmark is enjoying good growth again and Norway and the Czech Republic continue to perform strongly. On the other hand, the UK is continuing its negative trend, which pulls down the overall performance, and we are seeing relatively modest organic growth on a regional level. We are obviously addressing the matter to try to reverse this trend in the UK too.

One acquisition in the second quarter

We acquired Scannotec Oy in Finland in the second quarter. The company is a supplier of products and systems for information, surveillance and safety in public transport and industries. The company, which reports annual sales of EUR 1.5 million, has a strong market position in Finland and we see opportunities to achieve synergies with our existing operations.

Highly-efficient business model

OEM has a well-established and highly-efficient business model. We make unceasing efforts to improve our business operations and we have all the mechanisms in place to enable us to make acquisitions, achieve organic growth and deal with fluctuations in currency exchange rates. We take a proactive approach and solve issues as they arise – and it's those small daily efforts that contribute to the company's overall success. We have a sense of security and stability in our business – and always look to the future with a positive attitude.

Jörgen Zahlin

Managing Director and Chief Executive Officer

OEM INTERNATIONAL AB (publ) CRN 556184-6691, Box 1009, SE-573 28 Tranås, Sweden +46 (0)75-242 40 00

Incoming orders

Net sales SEK million

Share per region

Incoming orders

Incoming orders in the second quarter increased by 17% to SEK 545 million (466). Comparable entities reported a 9% increase in incoming orders.

Incoming orders in the first six months of 2015 increased by 19% to SEK 1,131 million (952). Comparable entities reported a 11% increase in incoming orders.

Incoming orders were 1% higher than net sales in the first six months.

At SEK 275 million, the order book was up by 16% over the corresponding period of the previous year.

The increase for comparable entities in the most recent quarters reflects a stronger business position in most of the markets.

Sales growth

Net sales in the second quarter increased by 20% to SEK 557 million (466). Comparable entities reported a 11% increase in net sales. Net sales in the first six months of 2015 increased by 20% to SEK 1,120 million (932). Comparable entities reported a 12% increase in net sales. Foreign currency exchange rate movements had a beneficial 6% effect on net sales.

OEM Electronics, Agolux, Svenska Helag, Telfa and Svenska Batteripoolen in Sweden and the operations in Slovakia, the Czech Republic, Finland and Denmark reported the largest positive growth in net sales compared to last year.

The percentages for the regions are the same as in the corresponding period of the previous year.

Return on equity

Earnings trend

Operating profit before amortisation of acquisition-related intangible fixed assets (EBITA) in the second quarter was SEK 56 million (46), which is an increase of 21%. The EBITA margin was at 10 % (9.9 %).

In the first six months of 2015, operating profit before amortisation of acquisition-related intangible fixed assets (EBITA) was SEK 118 million (93), which is an increase of 28%. The EBITA margin was at 10.6% (9.9%). During the first six months of the previous year, litigation costs amounted to SEK 4.9 million. When the percentage increase for this litigation is adjusted, the increase is 21%.

The increase in the operating profit is a consequence of a rise in net sales.

Profit after tax increased by 31% to SEK 82 million (63).

Earnings per share were SEK 3.56 (2.71).

Return

The return on equity was 7.4% compared to 6.2% for the year-ago quarter. The trailing-twelve-month return on equity was 26%, which exceeds the 20% target.

Shareholders' equity amounted to SEK 534 million (472) with an equity/assets ratio of 45% (44%) on 30 June 2015.

Sales growth by region per quarter

SEK million

There are small percentage changes across the regions over the period and all three regions are experiencing stable growth.

Sweden

OEM Automatic AB, OEM Motor AB, Telfa AB, Svenska Batteripoolen AB, Elektro Elco AB, Nexa Trading AB, OEM Electronics AB, Internordic Bearings AB, Svenska Helag AB, Flexitron AB, Agolux AB, Vanlid Transmission AB, Kübler Svenska AB and AB Ernst Hj Rydahl Bromsbandfabrik.

SEK million	2015 Q2	2014 Q2	2015 Q1 – Q2	2014 Q1 – Q2	2014 Full year	Trailing 12
Incoming orders	354	294	725	604	1,213	1,334
Net sales	359	293	721	591	1,193	1,323
EBITA	45	36	97	74	155	178
EBITA margin	13%	12%	14%	12%	13%	13%

Net sales rose 22% to SEK 721 million (591) in the first six months due to increasing demand on existing entities and the acquisition of AB Ernst Hj Rydahl Bromsbandfabrik. Comparable entities reported an 11% increase. Exchange rate fluctuations had a positive 6% impact on net sales. OEM Electronics, Agolux, Svenska Helag, Telfa, Svenska Batteripoolen and OEM Automatic account for the largest percentage growth in net sales in Sweden.

Incoming orders were also strong and increased by 20% to SEK 725 million (604).

Incoming orders were on par with the first six months of 2015, which is a positive sign.

EBITA rose 32% to SEK 97 million (74). During the first quarter of the previous year, litigation costs amounted to SEK 4.9 million. When the percentage increase for this litigation is adjusted, the increase is 24%.

Finland, the Baltic states and China

OEM Automatic FI, Akkupojat Oy, OEM Electronics FI, Scannotec Oy, OEM Automatic OU, OEM Automatic UAB, OEM Automatic SIA, OEM Automatic (Shanghai) Co.Ltd.

SEK million	2015 Q2	2014 Q2	2015 Q1 – Q2	2014 Q1 – Q2	2014 Full year	Trailing 12
Incoming orders	83	75	170	146	287	311
Net sales	86	74	171	143	284	312
EBITA	5	6	11	11	20	20
EBITA margin	6%	8%	7%	8%	7%	6%

Demand has generally been slow for Finnish industries. Yet despite this, net sales for the region rose 20% to SEK 171 million (143) in the first six months. The acquisition of Scannotec in June increased net sales by 1% and the movement in exchange rates had a beneficial 4% effect on net sales, which means the region reported 15% organic growth in the first six months.

Incoming orders were also strong and increased by 16% to SEK 170 million (146).

During the first six months, incoming orders were on a par with net sales. The Battery and Vision product areas are showing the strongest growth in Finland. Demand is good in the Baltic states where growth was 11% in the first six months.

EBITA rose 3% to SEK 11.3 million (10.9), due primarily to increased net sales. The EBITA margin has only risen slightly, despite the increase in sales. This is due to lower margins and ongoing market investments.

Denmark, Norway, UK and Central Eastern Europe

OEM Automatic Klitsö A/S, OEM Automatic AS, OEM Automatic Ltd, OEM Automatic Sp z o. o., OEM Electronics PL, OEM Automatic spol. s r.o., OEM Automatic s.r.o., OEM Automatic Kft.

SEK million	2015 Q2	2014 Q2	2015 Q1 – Q2	2014 Q1 – Q2	2014 Full year	Trailing 12
Incoming orders	108	97	237	202	416	451
Net sales	112	99	228	199	411	441
EBITA	9	7	19	16	32	36
EBITA margin	8%	7%	8%	8%	8%	8%

Net sales rose 15% to SEK 228 million (199) in the first six months due to increasing demand, particularly in Slovakia, the Czech Republic, Denmark and Norway. Acquisitions have increased net sales by 8% and the movement in exchange rates had a beneficial 6% effect on net sales, which means the region reported 2% organic growth in the first six months of 2015.

Incoming orders increased by 17% to SEK 237 million (202). Incoming orders were 4% higher than net sales in the first six months of 2015, which is a positive sign.

EBITA rose 24% to SEK 19 million (16), due primarily to increased sales.

Other financial information

Cash flow

Operating cash flow was SEK 94 million (77) in the first six months. The total cash flow for the first six months was SEK -24 million (-126). It was impacted by SEK -31 million (-34) from investing activities, SEK -98 million (-92) from dividends and SEK 0 million (-231) from redemption of shares.

Investments

The Group's investments in property, plant and equipment totalled SEK 32 million (42). Property, machinery and equipment accounted for SEK 14 million (7), intangible assets for SEK 18 million (35), of which SEK 17 million (34) are related to business combinations.

Cash and cash equivalents

Cash and cash equivalents, comprising cash and bank balances, amounted to SEK 57 million (49). Cash and cash equivalents, together with committed undrawn credit facilities, amounted to SEK 293 million (247) on 30 June 2015.

Intangible assets

Amortisation of intangible assets totalling SEK 13 million (11) has been charged to the income statement. The carrying amount in the Statement of Financial Position on 30 June 2015 was SEK 179 million (171).

Equity/assets ratio

On 30 June 2015, the equity/assets ratio was 45% (44%).

Employees

The Group's average number of employees for the period was 705 (643). At the end of the period, the number of employees was 715 (655). 59 of these employees come from acquired companies.

Share repurchase

The company has not repurchased any shares during the period. The company's total shareholding was 61,847 shares on 30 June 2015, which is equivalent to 0.3% of the aggregate number of shares. The Annual General Meeting is authorised to repurchase up to 10% of the shares, which is the equivalent of 2,316,930 shares.

Acquisitions

On 26 January 2015, the entire shareholding in AB Ernst Hj Rydahl Bromsbandfabrik, known as Rydahls, was acquired. The company has its head office in Karlstad and sales offices in five other locations in Sweden and is one of Scandinavia's leading suppliers of brake and friction components. The acquisition opens a whole new market segment for OEM. The company's sales in 2014 amounted to SEK 117 million. The company has 44 employees and became part of Region Sweden on 1 January 2015.

On 12 June 2015, the entire shareholding in Scannotec Oy in Finland was acquired. The company has its head office in the Finnish city of Espoo and is a supplier of technical products and systems for guidance, information, surveillance and safety that are used in public transport and industrial facilities. The acquisition opens a whole new market segment for OEM. It reports annual sales of approximately EUR 1.5 million. The company has 6 employees and became part of Region Finland, the Baltic states and China on 1 June 2015.

The total consideration for the businesses acquired was SEK 27.1 million, plus contingent considerations estimated at SEK 11 million, based on how the businesses develop in the 2015 - 2017 period. Following the acquisitions, OEM's consolidated net sales have increased by SEK 60 million and operating profit by SEK 2.1 million in 2015.

Preliminary acquisition analysis (SEK million)

	Companies
	' carrying	Fair value	Group
The acquired companies' net assets at the time of acquisition	amounts	adjustment	fair value
Intangible fixed assets	-	8.8	8.8
Other fixed assets	1.5	-	1.5
Other non-current receivables	0.1	-	0.1
Inventories	29.5	-	29.5
Other current assets	18.7	-	18.7
Cash and cash equivalents	5.3	-	5.3
Deferred tax liabilities	-	-2.6	-2.6
Other liabilities	-31.1	-	-31.1
Net identifiable assets/liabilities	24.0	6.2	30.3
Consolidated goodwill	-	7.8	7.8
Consideration, including contingent consideration			38.1

As a result of the acquisitions, other intangible assets have increased by SEK 8.8 million. The amount relates to customer relationships that will be amortised over a five-year period. Consolidated goodwill is not tax deductible.

OEM normally uses an acquisition structure with a base consideration and contingent consideration. Contingent consideration is initially valued at the present value of the probable earnings, which amounts to SEK 11 million for the acquisitions this year. The period for contingent consideration is three (3) years at most and the earnings may amount to a maximum of SEK 13 million. Acquisition-related transaction expenses for the period amount to SEK 0.3 million.

Remeasurement of contingent considerations

Developments in previously implemented acquisitions have not resulted in a remeasurement of continent consideration liability.

Accounting policies

OEM INTERNATIONAL AB (publ) CRN 556184-6691, Box 1009, SE-573 28 Tranås, Sweden +46 (0)75-242 40 00 This condensed consolidated interim report has been prepared in accordance with IAS 34, Interim Financial Reporting, and in compliance with relevant provisions from the Swedish Annual Accounts Act. The interim report for the Parent Company has been prepared in compliance with the Swedish Annual Accounts Act Chapter 9, Interim Report and the Securities Market 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 2015 have had a significant effect on the reported results or financial position of the Group.

Risks and uncertainties

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 financial operations of the OEM Group and management of financial risks are mainly handled by the Parent Company. Frameworks for risk management procedures and risk mitigation are in place. These frameworks are characterised by a low risk level. The basis is the structured and efficient management of the financial risks that arise in the business. For a complete report on the risks affecting the Group, please refer to pages 30 to 31 and pages 75 to 77 of the 2014 Annual Report.

Other than the risks and uncertainties described in the Annual Report for 2014, no significant risks or uncertainties have been identified or removed.

Litigation

At the beginning of April 2014, Lund District Court delivered judgement on a lawsuit in which the subsidiary Internordic Bearings AB (IBS) has been involved, regarding mutual creditor claims with a client and the client's insurance company for a breach of contract claim.

The judgement means that IBS has lost the case against the client. However, the client's insurance company has not been successful in its action against IBS, and the suit has been dismissed by the Court.

The judgement means that IBS must pay the client a net amount of SEK 4.9 million, including litigation costs, interest and net of the insurance payments that IBS receives via its own insurance company. The amount is included in the company's and the Group's income statement for the first quarter of 2014.

The client and its insurance company have appealed against the judgement to the Court of Appeal. IBS has also decided to appeal against the judgement. The Court has granted leave to appeal in all cases.

Related party transactions

No related party transactions have been entered into that materially affected the financial position or the performance of the Group and Parent Company during the period, except for inter-company dividend payments and dividends to shareholders of the Parent Company.

Parent company

Net sales were SEK 14 million (13) and profit after financial items was SEK 19 million (- 8.3). Net sales relate entirely to inter-company transactions. The foregoing risks and uncertainties specified for the Group also apply indirectly to the Parent Company.

Events after the close of the reporting period

There are no significant events to report after the close of the reporting period.

Date of next report

The interim report for the period January - September 2015 will be published on 20 October 2015.

Assurance

The Board of Directors and the Managing Director declare that the interim report gives a true and fair view of the Group's and the Parent Company's operations, position and income and describes the principal risks and uncertainties faced by the Parent Company and the Group's Companies.

Tranås, Sweden, 13 July 2015

Lars-Åke Rydh Ulf Barkman Hans Franzén Chairman of the Board Board member Board member

Board member Board member Board member

Jerker Löfgren Petter Stillström Åsa Söderström Jerring

Jörgen Zahlin Managing Director and Chief Executive Officer

The company's auditors have not conducted a special audit of this report.

For further information, please contact the Managing Director, Jörgen Zahlin, on +46 (0)75-242 40 22 or the Finance Director, Jan Cnattingius, on +46 (0)75-242 40 03.

The information in this report is of such a nature that its disclosure by OEM International AB (publ.) is required under the Swedish Securities Market Act. The information was released to the media for publication on 13 July 2015 at 11 a.m.

The regions' sales and earnings

SALES & EARNINGS BY REGION *

Net sales (SEK million) *

	Jan-	Jan
	June	June	Q2	Q1	Q4	Q3		Q2 Trailing	Full year
	2015	2014	2015	2015	2014	2014	2014	12 mth	2014
Sweden, external income	721	591	359	362	326	275	293	1 323	1 193
Sweden, income from other segments	48	44	24	23	20	20	21	88	84
Finland, the Baltic States and China, external income	171	143	86	85	72	69	74	312	284
Finland, the Baltic States and China, income from other segments 2		1	1	1	1	1	1		4 3
Denmark, Norway, the United Kingdom and
Central Eastern Europe, external income	228	199	112	116	109	104	99	441	411
Denmark, Norway, the United Kingdom and
Central Eastern Europe, income from other segments	1	0	1	0	0	0	0		1 1
Other operating segments/elimination	-50	-45	-26	-24	-21	-21	-22	-93	-88
	1 120	932	557	563	507	448	466	2 076	1 887

Operating profit (SEK million) *

	Jan-	Jan
	June	June	Q2	Q1	Q4	Q3		Q2 Trailing	Full year
	2015	2014	2015	2015	2014	2014	2014	12 mth	2014
Sweden	91	68	42	49	37	38	33	166	143
Finland, the Baltic States och China	11	10	5	6	3	5	6	19	18
Denmark, Norway, the United Kingdom and
Central Eastern Europe	16	13	7	9	5	9	6	29	27
Group functions	-10	-8	-4	-6	1	-3	-4	-12	-10
	108	84	50	58	46	49	41	203	179

Consolidated profit/loss (SEK million) *

	Jan-	Jan
	June	June	Q2	Q1	Q4	Q3		Q2 Trailing	Full year
	2015	2014	2015	2015	2014	2014	2014	12 mth	2014
Operating profit	108	84	50	58	46	49	41	203	179
Net financial items	-2	-2	-2	-1	-1	-1	-1	-3	-3
Pre-tax profit/(loss)	106	82	49	57	46	48	40	199	176

The Group's performance and financial position

CONDENSED CONSOLIDATED STATEMENT OF INCOME AND OTHER COMPREHENSIVE INCOME (SEK MILLION)

	Jan-	Jan
	June	June	Q2	Q1	Q4	Q3		Q2 Trailing	Full year
	2015	2014	2015	2015	2014	2014	2014	12 mth	2014
Net sales	1 120	932	557	563	507	448	466	2 076	1 887
Other operating income	0	-	-	0	0	1		- 1		1
Operating costs ***	-990	-827	-496	-494	-451	-389	-414	-1 830	-1 667
Depreciation of fixed assets	-23	-21	-11	-12	-11	-11	-11	-45	-43
Operating profit	108	84	50	58	46	49	41	203	179
Net financial income/expense	-2	-2	-2	-1	-1	-1	-1	-3	-3
Pre-tax profit/(loss)	106	82	49	57	46	48	40	199	176
Tax	-23	-19	-11	-13	-10	-10	-9	-43	-39
Profit/loss for the period	82	63	38	44	36	38	31	156	137
Other comprehensive income
Profit/loss for the period	82	63	38	44	36	38	31	156	137
Items that have been transferred or may
recycled to net income
Exchange differences for the period on
translation of overseas operations	-2	7	-1	-1	6	1	6		5 14
Items that can not be recycled to
net profit
Revaluation of defined
benefit pension plans	0	2	0	0	-1	0	2	-1	0
Other comprehensive income for the period	-2	8	-1	-1	5	1	8		4 14
Comprehensive income for the period	80	71	37	43	41	39	39	159	151
Earnings per outstanding share, SEK*	3,56	2,71	1,66	1,90	1,56	1,65	1,33	6,77	5,92
Earnings per total shares, SEK*	3,56	2,71	1,66	1,90	1,55	1,65	1,32	6,76	5,90
EBITA**	118	93	56	63	50	54	46	222	196

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

** Definition of EBITA; Operating profit before amortisation of acquisition-related intangible fixed assets.

*** Costs of SEK 4.9 million relating to a lawsuit judgement have been charged to operating expenses in the January to March 2014 period.

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (SEK MILLION)

	2015-06-30	2014-06-30	2014-12-31
Fixed assets
Goodwill	95	80	88
Other intangible assets	84	91	87
Total intangible assets	179	171	175
Property, plant and equipment	204	210	204
Total property, plant and equipment	204	210	204
Financial assets	0	1	0
Total financial assets	0	1	0
Total fixed assets	384	381	380
Deferred tax assets	2	2	2
Current assets
Inventories	360	299	337
Current receivables	382	339	325
Cash and cash equivalents	57	49	80
Total current assets	799	686	742
Total assets	1 185	1 069	1 123
Equity	534	472	552
Non-current interest-bearing liabilities	34	24	32
Provisions for pensions	3	2	3
Other provisions	-	-	-
Non-current non-interest-bearing liabilities	17	8	12
Deferred tax liabilities	70	69	70
Total non-current liabilities	124	103	117
Current interest-bearing liabilities	236	253	215
Current non-interest-bearing liabilities	291	241	239
Total current liabilities	527	494	455
Total equity and liabilities	1 185	1 069	1 123

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (SEK MILLION)

	2015-06-30	2014-06-30	2014-12-31
At beginning of year	552	725	725
Comprehensive income for the period
Profit/loss for the period	82	63	137
Other comprehensive income for the period	-2	8	14
Comprehensive income for the period	80	71	151
Dividends paid	-98	-92	-92
Redemption of shares	-	-231	-231
At the end of the period	534	472	552

CONDENSED CONSOLIDATED CASH FLOW STATEMENT (SEK MILLION)

	Jan-	Jan
	June	June	Q2	Q1	Q4	Q3		Q2 Trailing	Full year
	2015	2014	2015	2015	2014	2014	2014	12 mth	2014
Operating cash flows
before movements in working capital	99	78	42	57	59	45	33	203	182
Movements in working capital	-6	0	12	-17	5	-35		1 -36	-31
Operating cash flows	94	77	54	40	64	10	35	167	151
Cash flow from investing activities
Acquisition of subsidiaries
net effet on cash and cash equivalents	-21	-27	-5	-16	-4	-5	-5	-31	-36
Acquisition of intangible fixed assets	-1	-1	-1	0	0	0	-1		-1 -1
Acquisition of property, plant and equipment	-11	-7	-6	-5	-7	-5	-4	-23	-19
Sales of property, plant and equipment	2	1	1	1	1	12		1 15	14
Investing cash flows	-31	-34	-11	-20	-10	1	-9	-41	-43
Financing cash flows
- Change in financial liabilities	12	154	12	0	-32	-1	147	-21	121
- Dividends paid	-98	-92	-98	-	-	-	-92	-98	-92
- Redemption of shares	-	-231	-	-	-	-	-231		- -231
Financing cash flow	-86	-169	-86	0	-32	-1	-176	-119	-203
Cash flow for the period	-24	-126	-43	19	21	10	-150		8 -94
Cash and cash equivalents at the beginning of the period	80	173	99	80	59	49	198	49	173
Exchange rate difference	1	1	1	0	0	1		1	1 2
Cash and cash equivalents at the end of the
period	57	49	57	99	80	59	49	57	80

KEY PERFORMANCE INDICATORS

	Jan-	Jan
	June	June	Q2	Q1	Q4	Q3		Q2 Trailing	Full year
	2015	2014	2015	2015	2014	2014	2014	12 mth	2014
Return on equity, %	15,1	10,5	7,4	7,7	5,1	5,8	6,2	26,0	21,4
Return on capital employed, % **	14,8	11,7	7,2	7,6	6,0	6,4	6,2	27,2	24,1
Return on total capital % ***	10,3	8,6	4,9	5,4	4,7	4,5	4,5	19,5	17,8
Equity/assets ratio, %	45,0	44,2							49,1
Earnings per outstanding share, SEK	3,56	2,71	1,66	1,90	1,56	1,65	1,33	6,77	5,92
Earnings per total shares, SEK	3,55	2,71	1,65	1,90	1,55	1,65	1,32	6,75	5,90
Equity per total shares, SEK	23,03	20,39							23,82
Average number of outstanding shares (thousands)	23 107	23 107	23 107	23 107	23 107	23 107	23 107	23 107	23 107
Average total shares (thousands)	23 169	23 169	23 169	23 169	23 169	23 169	23 169	23 169	23 169
Operating margin, %	9,6	9,0	9,0	10,2	9,1	10,9	8,9	9,8	9,5
EBITA-margin, % *	10,6	9,9	10,0	11,1	9,9	11,9	9,9	10,7	10,4

* Definition of EBITA margin; EBITA divided by net sales.

EBITA = Operating profit before amortisation of acquisition-related intangible fixed assets.

**EBITA plus finance income as a percentage of average capital employed.

***EBITA plus finance income as a percentage of average total capital.

The Parent Company's performance and financial position

CONDENSED INCOME STATEMENT OF THE PARENT COMPANY (SEK MILLION)

	Jan-	Jan
	June	June	Q2	Q1	Q4	Q3		Q2 Trailing	Full year
	2015	2014	2015	2015	2014	2014	2014	12 mth	2014
Net sales	14	13	7	7	19	7		7 39	39
Operating costs	-23	-22	-12	-10	-10	-10	-11	-43	-42
Depreciation	-3	-3	-2	-2	-2	-2	-2	-7	-7
Operating profit	-12	-12	-7	-5	7	-5	-6	-10	-10
Income from investments
in Group companies	31	4	31	-	20	-		4 51	14
Net financial income/expense	0	0	0	0	-1	0		0 -1	-1
Profit/loss after
financial items	19	-8	25	-5	26	-5	-3	41	3
Year-end appropriations	-	-	-	-	129	-		- 129	129
Pre-tax profit/(loss)	19	-8	25	-5	126	15	-3	160	132
Tax	3	2	1	1	-30	1		1 -26	-27
Profit/loss for the period	22	-6	26	-4	96	16	-2	134	106

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

CONDENSED BALANCE SHEET OF THE PARENT COMPANY (SEK MILLION)

Assets	2015-06-30	2014-06-30	2014-12-31
Intangible fixed assets	19	22	20
Property, plant and equipment	19	20	19
Financial assets	381	362	371
Total fixed assets	419	404	410
Current receivables	167	147	257
Cash on hand and demand deposits	0	0	0
Total current assets	167	147	257
Total assets	586	551	667
Equity and liabilities
Equity	105	70	182
Untaxed reserves	191	177	191
Deferred tax liabilities	2	2	2
Non-current non-interest-bearing liabilities	7	8	10
Total non-current liabilities	7	8	10
Current interest-bearing liabilities	255	280	110
Current non-interest-bearing liabilities	25	15	171
Total current liabilities	280	294	282
Total equity and liabilities	586	551	667
Pledged assets	7,5	7,5	7,5
Contingent liabilities	219	213	221

One of Europe's leading technology trading companies with 31 operating entities in 14 countries

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, familyowned 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 300 leading and specialist manufacturers and is responsible for their sales in selected markets. Its range comprises more than 25,000 products in the areas of electrical components, flow components, motors and transmissions, ball bearings and seals, appliance components and lighting. The Group has a customer base of more than 20,000 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.

www.oem.se