OEM International

Quarterly Report • Apr 23, 2021

Interim report Q1 2021

First quarter 2021

• Incoming orders rose 1% to SEK 1,018 million (1,010)
• ● Net sales rose 2% to SEK 907 million (888)
• Operating profit rose 28% to SEK 135 million (105)
• EBITA rose 27% to SEK 138 million (109)
• Profit after tax rose 29% to SEK 108 million (84)
• Earnings per share were SEK 4.68 (3.65)

New record in earnings

Following a drop in the second and third quarters of last year, demand increased again and continued to do so in the first quarter of this year, resulting in an all-time-high in earnings.

Incoming orders rose 1% and net sales rose 2%. There was no impact on net sales from acquisitions. Exchange rate movements had a negative 5% on net sales. Overall, this resulted in 7% organic growth in the first quarter.

Operating profit (EBITA) rose 27% in the quarter and the EBITA margin expanded to 15.2% (12.2%). The strong performance was due to increased sales and an improved gross margin, along with reduced costs. The lower costs are primarily due to a reduction in marketing activities and travel costs brought about by the pandemic.

Growth across the regions

Region Sweden reported strong demand which resulted in 10% organic growth. The entities reporting strongest growth are Elektro Elco, Svenska Helag, ATC and Svenska Batteripoolen. OEM Motor, Internordic and Nexa have also posted positive sales growth for the quarter.

Region Finland, the Baltic states and China also had a strong quarterly performance, which led to organic growth of 4%. However, sales fell 2% due to the effects of currency movements. The Baltic operations, the operations in China and Akkupojat in Finland are the entities reporting strongest growth.

Region Denmark, Norway, UK and East Central Europe showed some recovery, which resulted in 2% organic growth. However, sales fell 5% due to the effects of currency movements. The operations in the UK, the Czech Republic and Slovakia have reported positive sales growth during the quarter.

The level of infections continued to increase throughout the first quarter. As a result, marketing activities remained at a low level and business travel has only been undertaken in exceptional cases. Each organisation has continued to operate with a high level of activity, where this has been possible, and has served our customers and developed our business in an efficient manner.

Market situation remains uncertain

Generally favourable demand, price increases from our suppliers based on raw material price increases, and higher transport costs from Asia have posed challenges in many cases. So far, the increases in prices have been commercially manageable and delivery capacities have been acceptable on the whole. However, the market situation remains uncertain and we need to keep in close contact with both our customers and suppliers, and review our plans on an ongoing basis. Our companies have shown impressive creativity and drive to date, and I am convinced that the Group will continue to gain new market share

Jörgen Zahlin Managing Director and Chief Executive Officer

Net sales SEK million

Incoming orders

Incoming orders rose 1% to SEK 1,018 million (1,010) in the first quarter of 2021. For comparable entities, including the impact of foreign currency exchange rate movements, incoming orders were unchanged and the acquired incoming orders were up 1%.

Incoming orders in the first quarter of 2021 were 12% higher than net sales.

At SEK 626 million (548) on 31 March 2021, the order book was 14% higher than on the corresponding date of the previous year.

Sales growth

Net sales in the first quarter of 2021 increased by 2% to SEK 907 million (888). Net sales rose 7% for comparable entities, with a negative 5% impact from foreign currency exchange rate fluctuations. There was no impact from acquisitions in the first quarter.

The Swedish operations of Elektro Elco, Svenska Helag, ATC Tape Converting, Svenska Batteripoolen, Internordic Bearings, OEM Motor, the operations of Finnish Akkupojat, the Baltic operations and the operations in China and the UK reported most growth in net sales compared with last year. Slovakia and the Czech Republic.

There were marginal percentage shifts across the regions. Region Sweden gained a market share of 2 percentage points while Region Denmark, Norway, the UK and East Central Europe lost 2 percentage points. The market share of Region Finland, the Baltic states and China remained the same.

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

Growth in earnings

In the first quarter of 2021, EBITA, operating profit before amortisation and impairment of acquisition-related intangible fixed assets, rose 27% to SEK 138 million (109).

The EBITA margin stood at 15.2% (12.2%) during the first quarter. In the trailing twelvemonth period the EBITA margin amounted to 13.7%

Operating profit rose 28% to SEK 135 million (105) in the first quarter of 2021.

The operating margin stood at 14.9% (11.8) during the first quarter of 2021.

Profit after tax for the first quarter of 2021 rose 29% to SEK 108 million (84).

Earnings per share for the first quarter of 2021 were SEK 4.68 (3.65).

Return

The return on equity in the first quarter of 2021 was 7.6% compared with 7.5% in the corresponding quarter of the previous year.

The trailing twelve-month return on equity was 26.2%, compared with the target of 20%.

Equity amounted to SEK 1,484 million (1,169) with an equity/assets ratio of 69% (64%) on 31 March 2021.

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

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	2021 Q1	2020 Q1	2020 Full year	Trailing 12 month
Incoming orders	636	640	2,085	2,081
Net sales	572	541	2,013	2,044
EBITA	101	81	303	323
EBITA margin	18 %	15%	15%	16%

Net sales rose 6% in the first quarter of 2021 to SEK 572 million (541). A 4% decrease in net sales due to foreign exchange movements resulted in positive organic growth of 10% in the region. The companies reporting strongest growth are Elektro Elco, whose sales rose 27%, while Svenska Helag and ATC Tape Converting increased sales by 26%, and Batteripoolen by 18%. OEM Automatic, the Group's largest company, reported a 4% fall in sales year-on-year.

Incomming orders fell by 1% in the first quarter of 2021 to SEK 636 million (640). Incomming orders were 11% higher than net sales.

EBITA rose 24% to SEK 101 million (81) in the first quarter of 2021, due primarily to the higher sales and lower costs, primarily as a result of lower travel costs and reduced sales activities as a result of the corona pandemic.

Finland, the Baltic states and China

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

SEK million	2021 Q1	2020 Q1	2020 Full year	Trailing 12 month
Incoming orders	202	192	698	707
Net sales	178	182	695	691
EBITA	27	19	83	90
EBITA margin	15%	11%	12%	13%

Net sales for the first quarter of 2021 fell by 2% to SEK 178 million (182). Net sales have been affected negatively by foreign exchange movements by 6%, which means that organic growth reached 4%.

Incoming orders for the region increased by 5% to SEK 202 million (192). Incomming orders were 13% higher than net sales in the first quarter of 2021.

The battery business Akkupojat had in the first quarter an increase in net sales of 33%, while other units in Finland on the whole had a decrease in net sales of 8%. The unit in China had an increase in net sales of 35%. The units in the Baltic States had an increase in sales of 21%. The operations in the Baltic States and China are small and have little impact on the development of the region.

EBITA rose 38% to SEK 27 million (19), due primarily to a higher contribution margin and lower costs, primarily as a result of lower travel costs and reduced sales activities.

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	2021 Q1	2020 Q1	2020 Full year	Trailing 12 month
Incoming orders	180	177	586	588
Net sales	157	165	575	567
EBITA	13	11	39	41
EBITA margin	8%	2%	7%	7%

Net sales decreased in the first quarter by 5% to SEK 157 million (165). Exchange rate movements had a negative 7% impact on net sales, and sales from acquired businesses boosted net sales by 1%. Organic growth in the region reached 2%. The operations in the UK reported a 25% increase in net sales and the operations in Slovakia and the Czech Republic reported an increase in net sales of 20% and 11% respectively.

Incoming orders increased by 1% to SEK 180 million (177). Incoming orders were 14% higher than net sales.

EBITA rose 23% to SEK 13 million (11). This was due primarily to a higher contribution margin and lower costs, primarily as a result of lower travel costs and reduced sales activities.

Other financial information

Cash flow

Operating cash flow in the first quarter of 2021 was SEK 49 million (103). Cash flow totalled SEK 46 million (26) in the first quarter and was affected by investing activities of SEK -1 million (-26).

Investments

The Group's investments in fixed assets in the first quarter of 2021 totalled SEK 1 million (18). Property, machinery and equipment accounted for SEK 1 million (3), and intangible assets for SEK million (15), SEK – million (15) of which is related to business combinations.

Cash and cash equivalents

Cash and cash equivalents, comprising cash and bank balances, amounted to SEK 424 million (68). Cash and cash equivalents, together with committed undrawn credit facilities, amounted to SEK 797 million (438) on 31 March 2021. The Group's interest-bearing financial liabilities totalled SEK 107 million (139), of which SEK 56 million (73) are liabilities recognised in accordance with IFRS 16 Leases, which means that the Group has a positive net cash balance.

Intangible assets

Amortisation of intangible assets totalling SEK 3.7 million (5.1) was charged to the income statement in the first quarter of 2021. On 31 March 2021, intangible assets amounted to SEK 185 million (208).

Equity/assets ratio

On 31 March 2021, the equity/assets ratio was 69% (64%).

Employees

The Group's average number of employees in the first quarter of 2021 was 878 (904). At the end of the period, the number of employees was 881 (904).

Share repurchase

The company did not repurchase any shares during the period. The company's total shareholding was 61,847 shares on 31 March 2021. The holding corresponds to 0.3% of the total 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.

Remeasurement of contingent consideration

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 2021 totalled SEK 5.4 million (14).

Accounting policies

Denna delårsrapport i sammandrag för koncernen har upprättats i enlighet med IAS 34 Delårsrapportering samt tillämpliga bestämmelser i Årsredovisningslagen. Delårsrapporten för moderbolaget har upprättats i enlighet med Årsredovisningslagens 9 kapitel, Delårsrapport. 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

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

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.

Unlike in previous interim reports, operating costs are presented on the following lines in the condensed consolidated statement of income: goods for resale, staff costs and other expenses. In previous reports, these have been presented on one line: operating costs. To allow for comparability, figures for previous periods have been broken down according to the same principle.

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.

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 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 pages 32 and 33 and pages 78 to 81 of the 2020 Annual Report. Other than the risks and uncertainties set out in the 2020 Annual Report, along with the general uncertainty about the effects of the Covid-19 pandemic, no significant risks or uncertainties have been identified or removed. Our specific assessment of the risks arising from Covid-19 is presented below. 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 have been recognised as revenue in Other Operating Income in the condensed consolidated statement of income. The government has not yet confirmed the support for short-term work in Sweden, but we assess that the companies in the OEM Group that have applied for and received government support for shortterm work are eligible for the funding.

Related party transactions

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.

Parent Company

Net sales for the Parent Company in the first quarter totalled SEK 14 million (14) and profit after financial items was SEK 4.2 million (6.0). 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 arising from Covid-19 are described separately below. Otherwise, there are no other significant events to report after the close of the reporting period.

The impact of COVID-19 on the OEM Group

The pandemic had a limited impact on sales in the first quarter of the year. Tighter restrictions and increased infection rates have meant that the Group has continued to limit travel and marketing activities, resulting in lower costs.

The management team continues to maintain close dialogues with the respective operations in order to support efforts to adapt business activities to the changing circumstances. The health of our employees, suppliers and customers is OEM's main concern and we continue to carefully monitor the pandemic.

We continue to implement physical distancing in the workplace, guidelines on the use of lunch rooms and conference rooms, remote meetings instead of face-to-face meetings, and clear information to employees with the aim of mitigating the spread of the virus both inside and outside the workplace. Working from home, either all or some of the time, will continue where this is possible.

Increased infection rates in the quarter have meant that the situation remains uncertain, and it is still not clear when the situation will stabilise. However, infection rates should start to fall as vaccination rates gradually improve.

Definitioner

Definitions can be found on page 15.

Tranås, 22 April 2021

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 22 April 2021 at 14.00 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
	2021	2020	2020	2020	2020	12 mth	2020
Sweden, external income	572	541	551	462	459	2 044	2 013
Sweden, income from other segments	42	42	36	31	33	142	142
Finland, the Baltic States and China, external income	178	182	174	166	173	691	695
Finland, the Baltic States and China, income from other segments 4		2	2	1	3	9	7
Denmark, Norway, the United Kingdom and
East Central Europe, external income	157	165	142	134	133	567	575
Denmark, Norway, the United Kingdom and
East Central Europe, income from other segments	1	2	1	1	1	4	4
Elimination	-47	-45	-38	-34	-37	-155	-153
	907	888	868	761	766	3 302	3 283

EBITA (MSEK)

	Jan-	Jan
	mar	mar	Q4	Q3	Q2	Trailing	Full year
	2021	2020	2020	2020	2020	12 mth	2020
Sweden	101	81	85	73	64	323	303
Finland, the Baltic States and China	27	19	16	24	24	90	83
Denmark, Norway, the United Kingdom and
East Central Europe	13	11	7	9	12	41	39
Group functions	-3	-3	-1	1	0	-3	-3
	138	109	107	107	99	451	422

Operating profit (SEK million)

	Jan-	Jan
	mar	mar	Q4	Q3	Q2	Trailing	Full year
	2021	2020	2020	2020	2020	12 mth	2020
EBITA	138	109	107	107	99	451	422
Amortisation and write-downs of acquisition-related
intangible fixed assets.
Sweden	-1	-1	-1	-1	-1	-4	-4
Finland, the Baltic States and China,	-2	-2	-2	-2	-2	-6	-7
Denmark, Norway, the United Kingdom and
East Central Europe	-1	-1	-1	-1	-1	-3	-3
Operating profit	135	105	104	103	96	438	408

Consolidated profit/loss (SEK million)

	Jan-	Jan
	mar	mar	Q4	Q3	Q2	Trailing	Full year
	2021	2020	2020	2020	2020	12 mth	2020
Operating profit	135	105	104	103	96	438	408
Net financial items	0	1	-4	-2	-3	-8	-8
Pre-tax profit/(loss)	136	106	101	101	92	430	401

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
	2021	2020	2021	2020	2021	2020	2021	2020
Product Areas
Automation	195	203	105	116	153	161	453	480
Components	84	76	19	19	4	5	107	100
Lighting & Installation components	117	94	13	11	-	-	129	105
Other	176	167	41	36	-	-	218	203
	572	541	178	182	157	165	907	888

The Group's performance and financial position

CONDENSED CONSOLIDATED STATEMENT OF INCOME (SEK MILLION)

	Jan-	Jan
	mar	mar	Q4	Q3	Q2	Trailing	Full year
	2021	2020	2020	2020	2020	12 mth	2020
Operating income
Net sales	907	888	868	761	766	3 302	3 283
Other operating income	0	-	2	3	11	15	15
Operating costs*
Commodities	-577	-571	-572	-495	-500	-2 145	-2 139
Staff costs	-148	-153	-145	-120	-134	-547	-552
Other expenses	-30	-40	-30	-27	-27	-115	-125
Depreciatione/amorisation of property, plant and						0
equipemnt and intangible fixed assets	-17	-19	-18	-18	-20	-72	-74
Operating profit	135	105	104	103	96	438	408
Net financial income/expense	0	1	-4	-2	-3	-8	-8
Pre-tax profit/(loss)	136	106	101	101	92	430	401
Tax	-27	-22	-22	-20	-19	-89	-84
Profit/loss for the period	108	84	79	81	73	341	317
Earnings per outstanding share, SEK**	4,68	3,65	3,41	3,51	3,16	14,76	13,73

*Unlike in previous interim reports, operating costs are presented on the following lines: goods for resale, staff costs and other expenses. In previous interim reports, the costs have only been presented on one line: operating costs. To allow for comparability, figures for previous periods have been broken down according to the same principle.

* 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	108	84	79	81	73	341	317
Items that have been transferred or may
recycled to net income
Exchange differences for the period on
translation of overseas operations	9	18	-17	3	-21	-27	-18
Items that can not be recycled to
net profit
Revaluation of defined
benefit pension plans	1	-	-	1	-1	0	0
Other comprehensive income for the period	9	18	-17	3	-22	-27	-18
Comprehensive income for the period	118	103	62	84	51	315	299
EBITA	138	109	107	107	99	451	422

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (SEK MILLION)

	2021-03-31	2020-03-31	2020-12-31
Fixed assets
Goodwill	147	152	146
Other intangible assets	38	56	41
Total intangible assets	185	208	187
Property, plant and equipment	317	356	324
Total property, plant and equipment	317	356	324
Deferred tax assets	8	5	8
Financial assets	0	0	0
Total financial assets	8	5	9
Total fixed assets	511	568	520
Current assets
Inventories	561	583	579
Current receivables	660	612	517
Cash and cash equivalents	424	68	376
Total current assets	1 644	1 263	1 472
Total assets	2 155	1 831	1 992
Equity	1 484	1 169	1 366
Non-current interest-bearing liabilities	39	56	42
Provisions for pensions	1	2	2
Övriga avsättningar	2	2	2
Non-current non-interest-bearing liabilities	4	22	4
Deferred tax liabilities	95	88	94
Total non-current liabilities	140	171	145
Current interest-bearing liabilities	68	83	61
Current non-interest-bearing liabilities	464	409	420
Total current liabilities	532	492	481
Total equity and liabilities	2 155	1 831	1 992

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (SEK MILLION)

	2021-03-31	2020-03-31	2020-12-31
At beginning of year	1 366	1 066	1 066
Comprehensive income for the period
Profit/loss for the period	108	84	317
Other comprehensive income for the period	9	18	-18
Comprehensive income for the period	118	103	299
Dividends paid	-	-	-
At the end of the period	1 484	1 169	1 366

CONDENSED CONSOLIDATED CASH FLOW STATEMENT (SEK MILLION)

	Jan-	Jan
	mar	mar	Q4	Q3	Q2	Trailing	Full year
	2021	2020	2020	2020	2020	12 mth	2020
Operating cash flows
before movements in working capital	126	104	107	101	91	426	403
Movements in working capital	-77	-1	48	-28	47	-11	65
Operating cash flows	49	103	156	73	137	415	469
Acquisition of subsidiaries
net effet on cash and cash equivalents	-	-23	-1	-1	0	-3	-26
Acquisition of intangible fixed assets	0	0	0	0	0	0	0
Acquisition of property, plant and equipment	-1	-3	-3	-2	-1	-7	-9
Sales of property, plant and equipment	0	0	0	0	0	1	0
Investing cash flows	-1	-26	-4	-3	-1	-9	-34
Financing cash flows
- Loan raised	1	1	0	0	2	3	3
- Loan amortisation	-3	0	-1	0	0	-5	-2
- Repayment of lease liabilities	-8	-10	-9	-9	-8	-34	-35
- Change in bank overdrafts	9	-42	6	-25	-2	-13	-63
- Dividends paid	-	-	-	-	-	-	-
Financing cash flow	-2	-51	-4	-34	-9	-49	-97
Cash flow for the period	46	26	148	35	128	357	337
Cash and cash equivalents at the beginning of the period	376	42	230	194	68	68	42
Exchange rate difference	2	0	-2	0	-1	-1	-3
Cash and cash equivalents at the end of the period	424	68	376	230	194	424	376

KEY PERFORMANCE INDICATORS

	Jan-	Jan
	mar	mar	Q4	Q3	Q2	Trailing	Full year
	2021	2020	2020	2020	2020	12 mth	2020
Return on equity, %	7,6	7,5	6,0	6,3	6,3	26,2	26,1
Return on capital employed, %	9,3	8,9	7,5	7,9	7,6	32,3	31,9
Return on total capital %	6,7	6,2	5,4	5,7	5,4	23,2	22,7
Equity/assets ratio, %	68,8	63,8					68,6
Earnings per outstanding share, SEK*	4,68	3,65	3,41	3,51	3,16	14,76	13,73
Earnings per total shares, SEK*	4,67	3,64	3,39	3,50	3,16	14,72	13,69
Equity per total shares, SEK	64,03	50,45					58,95
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, %	14,9	11,8	12,0	13,6	12,5	13,3	12,4
EBITA-margin, %	15,2	12,2	12,4	14,0	13,0	13,7	12,9

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

Income from investments One of Europe's leading technology trading companies with 36 operating entities in 14 countries

Equity and liabilities

Equity

2021 2020 2020 2020 2020 12 mth 2020 Net sales 14 14 14 14 15 57 57 Other operating income - - 0 0 0 0 0 Operating costs -15 -15 -15 -11 -12 -54 -54 Depreciation -1 -2 -1 -2 -2 -6 -7 Operating profit -2 -2 -3 2 1 -2 -3 in Group companies 6 9 -2 0 51 55 58 Other financial income/expense, Net 0 0 0 0 0 0 0 Profit/loss after financial items 4 6 -4 2 52 54 55 Year-end appropriations - - 229 0 -4 225 225 Pre-tax profit/(loss) 4 6 225 2 48 278 280 Tax 0 1 -49 0 1 -49 -48 Profit/loss for the period 4 7 176 1 49 229 232 Comprehensive income for the period corresponds with the profit/loss for the period. CONDENSED BALANCE SHEET OF THE PARENT COMPANY (SEK MILLION) Assets 2021-03-31 2020-03-31 2020-12-31 Intangible fixed assets 5 9 5 Property, plant and equipment 17 18 17 Financial assets 374 381 374 Total fixed assets 396 408 397 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

Current receivables 484 478 534 Cash on hand and demand deposits 292 260 Total current assets 776 478 795 Total assets 1 172 886 1 191

Non-distributable equity 76 77 76 Distributable equity 644 413 640 Total shareholders' equity 720 490 716

Untaxed reserves 333 300 333 Deferred tax liabilities 2 2 2 Non-current non-interest-bearing liabilities 2 4 2 Total non-current liabilities 2 4 2 Current interest-bearing liabilities - 7 - Current non-interest-bearing liabilities 115 84 139 Total current liabilities 115 91 139 Total equity and liabilities 1 172 886 1 191

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