OEM International

Quarterly Report • Apr 9, 2020

Interim report Q1 2020 First quarter 2020

• Incoming orders rose 16 % to SEK 1 010 million (870)
• ● Net sales rose 5 % to SEK 888 million (847)
• Operating profit rose 6 % to SEK 105 million (100)
• EBITA rose 5 % to SEK 109 million (103)
• Profit after tax rose 8 % to SEK 84 million (78)
• Earnings per share were SEK 3,65 (3,37)

Strong first quarter in troubled times

Sales and earnings both reached a new all-time high in the first quarter of 2020. The growth rate is on a par with the second half of the previous year and demand has been generally good.

Net sales rose 5% compared with the first quarter of 2019, with acquisitions and currency movements accounting for 1 and 2 percentage points respectively. This means that 2% organic growth was achieved in the period. Incoming orders were also strong, with an increase of 16%, of which 6 % relates to a large one-off business that extends over two years.

The operating margin (EBITA) stood at just over 12%, which is on a par with the previous year period. The gross margin expanded by 0.4 percentage points, due primarily to the weaker Swedish krona.

Growth across the regions

A breakdown of growth in our regions clearly shows that Sweden is maintaining its good performance with 3% growth. Elektro Elco and ATC Tape Converting achieved growth of just over 20%, while OEM Motor, Telfa and Batteripoolen delivered growth in excess of 10%.

All in all, the quarter has been strong for region Finland, the Baltic states and China which reported growth of 9%, largely due to a healthy performance by Rauheat and OEM Finland.

Our third region achieved growth of 6%, which is primarily growth via acquisition. The operations in Hungary, Norway, Denmark and Poland have reported good growth, while other markets have declined.

COVID-19 – impact on the OEM Group

We are all greatly affected by the Corona crisis and work is under way across all our entities to cut costs and prepare for a significant decline in demand. Although sales figures for March were good for most of the operations, it is obvious that we are heading into a period with a complete change in market conditions. We must make the health of our employees a top priority and we are following the directives and recommendations of the Public Health Agency of Sweden and of the governments of the respective countries to contain the spread of COVID-19 to the greatest extent possible.

Seize the opportunities that arise

How we get through this crisis depends greatly on how we enter the crisis. We aim to retain as much as possible of our organisation, our customers and our suppliers. We will have to expect changes. Our size and strong financial position mean we are well placed to cope with the current situation, and also seize business opportunities.

Jörgen Zahlin

Managing Director and Chief Executive Officer

Incoming orders

In the first quarter of 2020, incoming orders were SEK 1,010 million (870), which is an increase of 16 %. For comparable entities, including the impact of foreign currency exchange rate movements, incoming orders rose 15 % and the acquired incoming orders were 1 %.

Incoming orders in the first quarter of 2020 were 14 % higher than net sales.

At SEK 548 million (439) on 31 March 2020, the order book was 25% up on the previous year.

Net sales SEK million

Share by region 2020

Sales growth

In the first quarter of 2020, net sales were SEK 888 million (847), which is an increase of 5 %. For comparable entities, net sales rose 2 % and the acquired net sale were 1 %. Exchange rate fluctuations in the first quarter had a 2 % positive impact on net sales.

The Swedish operations of Elektro Elco, ATC Tape Converting, OEM Motor, Telfa and Svenska Batteripoolen and the operations in Hungary, Norway, Denmark and Poland reported the highest percentage growth in net sales compared with last year.

There are small percentage shifts between the regions, with sales rose by 1 percentage point compared to last year in both Region Sweden and Region Denmark, Norway, the UK and East Central Europe, while sales was reduced by 2 percentage points compared to last year in Region Finland, the Baltic states and China.

EBITA margin

Growth in earnings

In the first quarter of 2020, EBITA, operating profit before amortisation and impairment of acquisition-related intangible fixed assets, rose 5 % to SEK 109 million (103).

The EBITA margin stood at 12.2 % (12.2 %) in the first quarter of 2020. The EBITA margin for the trailing twelve months was 11.7 %.

Operating profit rose 6 % to SEK 105 million (100) in the first quarter of 2020.

The operating margin stood at 11.8 % (11.8 %) in the first quarter.

Profit after tax rose 8 % to SEK 84 million (78) in the first quarter of 2020.

Earnings per share stood at SEK 3.65 (3.37) in the first quarter of 2020.

Return

The return on equity in the first quarter of 2020 was 7.5 % compared with 8.1 % in the year-ago quarter.

The trailing twelve month-return on equity was 28.4 %, which is well above the 20 % target.

Shareholders' equity amounted to SEK 1,169 million (1,010) with an equity/assets ratio of 64 % (60 %) on 31 March 2020.

Sales growth by region for each quarter

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, AB Ernst Hj Rydahl Bromsbandfabrik and ATC Tape Converting AB.

SEK million	2020 Q1	2019 Q1	2019 Full year	Trailing 12 month
Incoming orders	640	527	1 986	2 100
Net sales	541	523	1 995	2 013
EBITA	81	78	286	290
EBITA margin	15 %	15 %	14 %	14 %

Net sales rose 3 % to SEK 541 million (523) in the first quarter. Foreign currency exchange rate movements had positive effects of 2 %, which means that organic growth in the region reached 1 %. Elektro Elco and ATC Tape Converting show a growth of 26 and 23 % respectively, while OEM Motor, Telfa och Batteripoolen have growth just over 10 %. The Group's largest company, OEM Automatic, has net sales in the first quarter that are in line with previous year.

Incoming orders in the first quarter reached SEK 640 million (527), an increase of 22 %. Incoming orders were 18 % higher than net sales in the period.

EBITA rose 5 % to SEK 81 million (78) in the first quarter, due primarily to increased net sales.

Finland, the Baltic states and China

OEM Automatic FI, Akkupojat Oy, OEM Electronics FI, Sitek-Palvelu OY, Rauheat OY, OEM Automatic OU, OEM Automatic UAB, OEM Automatic SIA and OEM Automatic (Shanghai) Co.Ltd.

SEK million	2020 Q1	2019 Q1	2019 Full year	Trailing 12 month
Incoming orders	192	175	711	729
Net sales	182	167	699	714
EBITA	19	14	71	76
EBITA margin	11 %	8 %	10 %	11 %

Net sales for the region rose 9 % to SEK 182 million (167) in the first quarter. Favourable foreign exchange movements boosted net sales by 3%, which means that organic growth in the region reached 6%.

The level of incoming orders has also been good, rising 10% to SEK 192 million (175). Incoming orders were 6 % higher than nets sales in the period.

Growth has continued across most of the operations in Finland in the first quarter, while China and the Baltic states have slightly lower levels than before. The operations in China and the Baltic states are small and their impact on total growth is marginal.

EBITA rose 40 % to SEK 19 million (14), due primarily to increased net sales.

Denmark, Norway, UK and East 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 s.r.o. and OEM Automatic Kft.

SEK million	2020 Q1	2019 Q1	2019 Full year	Trailing 12 month
Incoming orders	177	169	606	614
Net sales	165	157	604	613
EBITA	11	14	37	34
EBITA margin	2 %	9 %	6 %	5 %

Net sales rose in the first quarter by 6 % to SEK 165 million (157). Foreign currency exchange rate movements and acquisitions had positive effects of 2 % and 6 % respectively on net sales, which means that organic growth in the region was down 2 %. The operations reporting the strongest percentage growth are Hungary, Norway, Denmark and Poland.

Incoming orders in the first quarter reached SEK 177 million (169), an increase of 5 %. Incoming orders were 7% higher than net sales in the period.

EBITA stood at SEK 11 million (14), which is a decrease of 23 %, due primarily to increased cost base.

Other financial information

Cash flow

Operating cash flow was SEK 103 million (42) in the first quarter of 2020. Total cash flow amounted to SEK 26 million (10) in the first quarter of 2020 and was affected, in part, by investing activities of SEK -26 million (-17).

Investments

The Group's investments in fixed assets in the first quarter of 2020 amounted to SEK 18 million (12). Property, machinery and equipment accounted for SEK 3 million (12), and intangible assets for SEK 15 million (-), of which SEK 15 million (-) is related to business combinations.

Cash and cash equivalents

Cash and cash equivalents, comprising cash and bank balances, amounted to SEK 68 million (50). Cash and cash equivalents, together with committed undrawn credit facilities, amounted to SEK 438 million (378) on 31 March 2020.

Intangible assets

Amortisation of intangible assets totalling SEK 5.1 million (4.9) were charged to the income statement for the first quarter of 2020. On 31 March 2020, intangible assets amounted to SEK 208 million (189).

Equity/assets ratio

On 31 March 2020, the equity/assets ratio was 64% (60%).

Employees

The Group's average number of employees in the first quarter of 2020 was 904 (876). At the end of the period, the number of employees was 904 (874). 15 of them have 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 31 March 2020, which is equivalent to 0.3% of the aggregate number of shares. The mandate granted by the Annual General Meeting is for the repurchase of up to 10% of the number of shares, which is the equivalent of 2,316,930 shares.

Acquisitions

The shares of Zoedale Ltd in UK were acquired on 31 January 2020. The company, with head office located in Bedford, markets valves and actuators for various process and industrial applications. The company have annual sales of approximately SEK 37 million and 15 employees. The company became part of Region Denmark, Norway, UK and East Central Europe on 1 February 2020. The consideration for the business acquired was SEK 26,2 million, including contingent considerations estimated at SEK 6.1 million, based on how the business develops in the 2020-2021 period.

Preliminary acquisition analysis (SEK million)

	Group fair
The acquired company's net assets at the time of acquisition	value
Intangible fixed assets	7.3
Buildings and land	5.2
Other fixed assets	0.2
Inventories	5.0
Other current assets	4.4
Cash and cash equivalents	3.4
Deferred tax liability	-1.4
Other liabilities	-5.5
Net identifiable assets/liabilities	18.6
Goodwill	7.6
Consideration, including contingent consideration	26.2

As a result of the acquisition, other intangible fixed assets will increase by SEK 7.3 million. Other intangible fixed assets relate to customer relationships that will be amortised over a five-year period.

OEM normally uses an acquisition structure with a base consideration and contingent consideration. Contingent consideration is initially measured at the present value of the probable earn-out amount, which is SEK 6.1 million for this acquisition. The period for contingent consideration is two (2) years at most and the earn-out is capped at SEK 7.1 million. Both the base consideration and the contingent consideration are settled in cash.

External transaction expenses linked to the acquisitions amounts to SEK 0.4 million (-).

Remeasurement of contingent considerations

Developments in previously implemented acquisitions have not resulted in a remeasurement of continent consideration liability. Acquisition-related consideration liabilities (both absolute and contingent) on 31 March 2020 totalled SEK 14 million (11).

Accounting policies

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 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 2020 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 stated at 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.

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. For a complete report on the risks affecting the Group, please refer to page 35 and pages 77 to 79 of the 2019 Annual Report. Other than the risks and uncertainties described in the 2019 Annual Report, together with the uncertainty according to effects of the Corona virus, no significant risks or uncertainties have been identified or removed.

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.

Parent Company

Net sales for the Parent Company in the first quarter of 2020 totaled SEK 14 million (13) and profit after financial items was SEK 6.0 million (-1.4). 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

Events because of Covid-19 are described separately below. Part from this, there are no other significant events to report after the close of the reporting period.

The impact of COVID-19 on the OEM Group

Covid-19 has had limited impact on OEM to date and sales were good in March across most of its operations. The management team is in close dialogue with all subsidiaries to support them in the process of reducing costs and preparing for significantly lower demand. Each entity has a plan of action to enable it to deal with different levels of impact and most of the operations have initiated temporary layoffs and other cost-saving measures. The health of our employees, suppliers and customers is our main concern and we are following the directives and recommendations of the Public Health Agency of Sweden and of the governments of the respective countries to contain the spread of Covid-19 to the greatest extent possible.

The Annual General Meeting

The Annual General Meeting will be held at 4 p.m. on 22 April 2020, at Badhotellet's Conference Centre in Tranås.

Due to the prevailing situation of the spread risk of Covid -19, measures will be taken to ensure the health and safety of shareholders and employees, and therefore the meeting will be shortened and participation from the board and management limited. The CEO's speech will be published on the website.

The assessment is that the AGM can be conducted in a manner that follows the rules and recommendations that apply from the government and the public health authority.

Dividend

The Board of Directors of OEM has decided to withdraw the previously communicated proposal to the Annual General Meeting 2020 for a dividend of SEK 7.00 per share. The decision was made in the light of the prevailing global environment, due to the outbreak of Covid-19 and its effects on the outside world and markets, and the risk of the outbreak's potential financial impact on OEM's operations and result.

Definitions

Definitions can be found on page 16.

Tranås, Sweden, 9 april 2020

Jörgen Zahlin Managing Director and Chief Executive Officer

This report has not been subject to special auditing procedures by the company's auditors.

For further information, please contact the Managing Director, Jörgen Zahlin, on +46 (0)75-242 40 22 or the Finance Director, Johan Broman, on +46 (0)75-242 40 02.

This information is of such a nature that its disclosure by OEM is required under the EU Market Abuse Regulation no 596/2014. The information was provided for publication on April 9, 2020 at 10.00 CET by Johan Broman.

The regions' sales and earnings

SALES & EARNINGS BY REGION

Net sales (SEK million)

	Jan-	Jan
	mar	mar	Q4	Q3	Q2	Trailing	Full year
	2020	2019	2019	2019	2019	12 mth	2019
Sweden, external income	541	523	518	452	502	2 013	1 995
Sweden, income from other segments	42	37	37	38	34	151	147
Finland, the Baltic States and China, external income	182	167	169	176	187	714	699
Finland, the Baltic States and China, income from other segments 2		2	2	2	1	8	8
Denmark, Norway, the United Kingdom and
East Central Europe, external income	165	157	142	148	158	613	604
Denmark, Norway, the United Kingdom and
East Central Europe, income from other segments	2	1	1	1	1	4	3
Elimination	-45	-40	-41	-41	-36	-163	-158
	888	847	828	776	848	3 340	3 299

EBITA (SEK million)

	Jan-	Jan
	mar	mar	Q4	Q3	Q2	Trailing	Full year
	2020	2019	2019	2019	2019	12 mth	2019
Sweden	81	78	71	72	65	290	286
Finland, the Baltic States and China	19	14	15	23	19	76	71
Denmark, Norway, the United Kingdom and
East Central Europe	11	14	2	9	12	34	37
Group functions	-3	-2	-3	-1	-3	-9	-9
	109	103	85	104	93	391	385

Operating profit (SEK million)

	Jan-	Jan
	mar							mar	Q4	Q3	Q2	Trailing	Full year
	2020	2019	2019	2019	2019	12 mth	2019
EBITA	109	103	85	104	93	391	385
Amortisation and write-downs of acquisition-related
intangible fixed assets.
Sweden	-1	-1	-2	-1	-1	-6	-6
Finland, the Baltic States and China,	-2	-2	-2	-2	-2	-7	-7
Denmark, Norway, the United Kingdom and
East Central Europe	-1	0	0	0	0	-1	-1
Operating profit	105	100	82	100	90	377	371

Consolidated profit/loss (SEK million)

	Jan-	Jan
	mar	mar	Q4	Q3	Q2	Trailing	Full year
	2020	2019	2019	2019	2019	12 mth	2019
Operating profit	105	100	82	100	90	377	371
Net financial items	1	-1	-2	0	-2	-2	-4
Pre-tax profit/(loss)	106	99	80	100	88	374	367

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
	mar	mar	mar	mar	mar	mar	mar	mar
	2020	2019	2020	2019	2020	2019	2020	2019
Product Areas
Automation	203	203	116	103	161	149	480	455
Components	76	87	19	19	5	7	100	113
Lighting & Installation components	94	77	11	8	-	1	105	86
Other	167	156	36	36	-	-	203	192
	541	523	182	167	165	157	888	847

The Group's performance and financial position

CONDENSED CONSOLIDATED STATEMENT OF INCOME (SEK MILLION)

	Jan-	Jan
	mar	mar	Q4	Q3	Q2	Trailing	Full year
	2020	2019	2019	2019	2019	12 mth	2019
Net sales	888	847	828	776	848	3 340	3 299
Other operating income	-	-	0	-	-	0	0
Operating costs	-765	-730	-728	-657	-740	-2 890	-2 855
Depreciation and write-downs of fixed assets	-19	-17	-19	-18	-18	-74	-73
Operating profit	105	100	82	100	90	377	371
Net financial income/expense	1	-1	-2	0	-2	-2	-4
Pre-tax profit/(loss)	106	99	80	100	88	374	367
Tax	-22	-21	-15	-24	-18	-79	-78
Profit/loss for the period	84	78	65	76	69	295	289
Earnings per outstanding share, SEK*	3,65	3,37	2,82	3,30	3,01	12,78	12,50
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (SEK MILLION)
Other comprehensive income
Profit/loss for the period	84	78	65	76	69	295	289
Items that have been transferred or may
recycled to net income
Exchange differences for the period on
translation of overseas operations	18	8	-9	6	4	19	9
Items that can not be recycled to
net profit
Revaluation of defined
benefit pension plans	-	0	1	0	0	0	0
Other comprehensive income for the period	18	7	-8	6	4	20	9
Comprehensive income for the period	103	85	57	82	73	315	298

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

Current assets

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (SEK MILLION)

	2020-03-31	2019-03-31	2019-12-31
Fixed assets
Goodwill	152	137	141
Other intangible assets	56	52	54
Total intangible assets	208	189	195
Property, plant and equipment	356	307	342
Total property, plant and equipment	356	307	342
Deferred tax assets	5	4	4
Financial assets	0	0	0
Total financial assets	5	4	4
Total fixed assets	568	500	541

Inventories	583	584	629
Current receivables	612	558	512
Cash and cash equivalents	68	50	42
Total current assets	1 263	1 192	1 183
Total assets	1 831	1 692	1 725
Equity	1 169	1 010	1 066
Non-current interest-bearing liabilities	56	56	50
Provisions for pensions	2	2	2
Övriga avsättningar	2	-	2
Non-current non-interest-bearing liabilities	22	2	4
Deferred tax liabilities	88	92	87
Total non-current liabilities	171	152	144
Current interest-bearing liabilities	83	127	124
Current non-interest-bearing liabilities	409	403	390
Total current liabilities	492	530	514
Total equity and liabilities	1 831	1 692	1 725

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (SEK MILLION)

	2020-03-31	2019-03-31	2019-12-31
At beginning of year	1 066	926	926
Adjustment on transition to IFRS 16 (net)	-	-1	-1
Comprehensive income for the period
Profit/loss for the period	84	78	289
Other comprehensive income for the period	18	7	9
Comprehensive income for the period	103	85	298
Dividends paid	-	-	-156
At the end of the period	1 169	1 010	1 066

CONDENSED CONSOLIDATED CASH FLOW STATEMENT (SEK MILLION)

	Jan-	Jan
	mar	mar	Q4	Q3	Q2	Trailing	Full year
	2020	2019	2019	2019	2019	12 mth	2019
Operating cash flows
before movements in working capital	104	91	83	101	89	376	363
Movements in working capital	-1	-49	9	-30	-3	-24	-72
Operating cash flows	103	42	92	71	86	352	291
Acquisition of subsidiaries
net effet on cash and cash equivalents	-23	-6	-5	-	-	-28	-11
Acquisition of intangible fixed assets	0	0	-9	-1	-2	-13	-13
Acquisition of property, plant and equipment	-3	-12	-14	-15	-26	-57	-67
Sales of property, plant and equipment	0	1	0	0	0	0	1
Investing cash flows	-26	-17	-28	-16	-28	-98	-89
Financing cash flows
- Loan raised	1	1	1	0	0	1	2
- Loan amortisation	0	-3	0	1	0	1	-2
- Repayment of lease liabilities	-10	-8	-7	-12	-7	-36	-35
- Change in bank overdrafts	-42	-4	-57	-44	97	-46	-8
- Dividends paid	-	-	-	-	-156	-156	-156
Financing cash flow	-51	-15	-64	-55	-65	-235	-199
Cash flow for the period	26	10	0	0	-7	18	3
Cash and cash equivalents at the beginning of the period	42	38	42	42	50	50	38
Exchange rate difference	0	1	-1	0	0	0	1
Cash and cash equivalents at the end of the period	68	50	42	42	42	68	42

KEY PERFORMANCE INDICATORS

	Jan- mar 2020	Jan mar 2019	Q4 2019	Q3 2019	Q2 2019	Trailing 12 mth	Full year 2019
Return on equity, %	7,5	8,1	5,9	7,2	7,8	28,4	29,0
Return on capital employed, %	8,9	9,1	7,3	8,8	8,1	33,1	33,3
Return on total capital %	6,2	6,4	5,0	5,8	5,7	22,7	22,9
Equity/assets ratio, %	63,8	59,7					61,8
Earnings per outstanding share, SEK	3,65	3,37	2,82	3,30	3,01	12,78	12,50
Earnings per total shares, SEK	3,64	3,36	2,82	3,29	3,00	12,75	12,47
Equity per total shares, SEK	50,45	43,59					46,03
Average number of outstanding shares (thousands)	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
Operating margin, %	11,8	11,8	9,9	12,9	10,6	11,3	11,3
EBITA-margin, %	12,2	12,2	10,3	13,4	11,0	11,7	11,7

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

The Parent Company's performance and financial position

CONDENSED INCOME STATEMENT OF THE PARENT COMPANY (SEK MILLION)

	Jan-	Jan
	mar	mar	Q4	Q3	Q2	Trailing	Full year
	2020	2019	2019	2019	2019	12 mth	2019
Net sales	14	13	14	14	14	58	57
Operating costs	-15	-12	-14	-12	-14	-54	-51
Depreciation	-2	-2	-2	-2	-2	-8	-8
Operating profit	-2	-1	-2	1	-1	-4	-3
Income from investments
in Group companies	9	-	0	4	44	56	47
Other financial income/expense, Net	0	0	0	0	0	-1	-1
Profit/loss after financial items	6	-1	-3	3	43	50	44
Year-end appropriations	-	-	288	-	-	288	288
Pre-tax profit/(loss)	6	-1	286	4	42	339	331
Tax	1	0	-62	0	0	-61	-61
Profit/loss for the period	7	-1	225	4	42	278	270

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

CONDENSED BALANCE SHEET OF THE PARENT COMPANY (SEK MILLION)

Assets	2020-03-31	2019-03-31	2019-12-31
Intangible fixed assets	9	10	10
Property, plant and equipment	18	16	19
Financial assets	381	419	427
Total fixed assets	408	445	456
Current receivables	478	382	559
Cash on hand and demand deposits		-	-
Total current assets	478	382	559
Total assets	886	827	1 015
Equity and liabilities
Equity	490	369	484
Untaxed reserves	300	307	300
Deferred tax liabilities	2	2	2
Non-current non-interest-bearing liabilities	4	2	4
Total non-current liabilities	4	2	4
Current interest-bearing liabilities	7	34	61
Current non-interest-bearing liabilities	84	113	165
Total current liabilities	91	147	226
Total equity and liabilities	886	827	1 015

Notes

Segment reporting is presented on page 5, 6, 11 and page 12, disclosures about fair value of financial instruments and accounting policies are presented on page 8.

Definitions

In addition to the conventional financial performance measures established by IFRS, OEM uses the term EBITA/EBITA margin as defined below. The reason is that OEM Wishes to summarise the companies' operations with regard to profit and margins, adjusted for amortisations of Group-related amortisations arising in connection with acquisitions and thereby improve the comparability of financial information across different periods of time.

EBITA

Operating profit before amortisation of acquisition-related intangible fixed assets A reconciliation of the calculation of EBITA is presented on page 12.

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 34 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, 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 300 leading and specialist manufacturers and is responsible for their sales in selected markets. Its range comprises more than 50,000 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) CRN 556184-6691, Box 1009, 573 28 Tranås +46 75-242 40 00 17