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OEM International
Quarterly Report • Apr 26, 2022
3090_10-q_2022-04-26_be4a4ccf-9ea2-4843-a929-07f3b458583e.pdf
Quarterly Report
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Interim report Q1 2022
First quarter 2022
- Incoming orders rose 27% to SEK 1,293 million (1,018)
- ● Net sales rose 23% to SEK 1,118 million (907)
- Operating profit rose 34% to SEK 181 million (135)
- EBITA rose 35% to SEK 187 million (138)
- Profit after tax rose 33% to SEK 144 million (108)
- Earnings per share were SEK 2.08 (1.56)
Demand was strong in the fourth quarter of 2021 and remained high in the first quarter of this year. In combination with good delivery capabilities, this resulted in a 23% increase in sales. The impact on net sales from acquisitions and exchange rate movements was 7 percentage points and 4 percentage points respectively, resulting in organic growth of 12%.
Incoming orders also remained strong and rose 27%, exceeding sales by 16%. As delivery times from manufacturers become increasingly longer, customers are placing longer orders than normal in order to secure supplies for the future.
Operating profit (EBITA) rose 35% in the quarter and the EBITA margin expanded to 16.7% (15.2%). The strong performance was due to increased sales and an improved gross margin.
The war in Ukraine has had limited impact on OEM to date. OEM has a few customers in the affected region with minimal sales activity. Deliveries to the customers that it had in Russia have been halted. A number of OEM's large customers, however, have customers of their own in the region and this will result in a decline in demand. Given OEM's total sales, this is not expected to impact its sales to any great extent.
The Irish company Demesne Electrical was acquired in early January 2022. It had a turnover of approximately SEK 205 million and an operating profit of around SEK 26 million in 2021. The company is a leading distributor of electrical components and uses several of the same suppliers as other OEM companies. The acquired business is an excellent complement to the Group and has grown well during the first quarter.
The combination of strong demand, price increases and positive currency movements has generally resulted in robust growth and improved gross margin. Growth was strongest in Region Denmark, Norway, the British Isles and East Central Europe, and in Region Finland, the Baltic states and China, with organic growth reaching 20% and 18% respectively. Organic growth in Region Sweden reached 8%.
Although OEM's operations have managed to maintain good delivery capabilities so far, they will continue to face issues with delivery capacity and this is reflected in the ever-growing order book.
The current geopolitical tensions, shortage of raw materials and significant price increases are causing uncertainty about the future. OEM has a history of strengthening market positions and market share during troubled times. The creativity and commitment of our employees are key to the positive performance of the Group which allows it grow stronger over time.
Jörgen Zahlin
Managing Director and Chief Executive Officer
Incoming orders rose 27% to SEK 1,293 million (1,018) in the first quarter of 2022. For comparable entities, including the impact from movements in exchange rates, incoming orders rose 21% and acquired incoming orders were up 6%. Incoming orders in the first quarter were 16% higher than net sales.
At SEK 1,105 million (626) on 31 March 2022, the order book was 77% higher than on the corresponding date of the previous year.
Net sales increased by 23% to SEK 1,118 million (907) in the first quarter of 2022. The impact on sales from exchange rate movements and acquisitions was 4% and 7% respectively, resulting in organic growth of 12%.
The Swedish operations of ATC Tape Converting, Nexa Trading and Svenska Batteripoolen reported the highest percentage growth in net sales compared with last year. Highest growth among the Finnish operations was posted by OEM Electronics, OEM Automatic and Rauheat. OEM Automatic Klitsø in Denmark and OEM Automatic in Norway also reported significant percentage growth in sales.
Region Sweden's share of sales fell by 4 percentage points, while Region Denmark, Norway, the British Isles and East Central Europe reported an increase of 2 percentage points. Region Finland, the Baltic states and China also reported a 2 percentage point increase.
Revenue from acquisitions in Region Denmark, Norway, the British Isles and East Central Europe increased the region's share of sales by 5 percentage points.
In the first quarter of 2022, EBITA, operating profit before amortisation and impairment of acquisition-related intangible fixed assets, rose 35% to SEK 187 million (138).
The EBITA margin stood at 16.7% (15.2%) in the first quarter.
The EBITA margin for the trailing twelve months was 16.1%.
Operating profit rose 34% to SEK 181 million (135) in the first quarter of 2022, delivering an operating margin of 16.2% (14.9%).
Profit after tax rose 33% to SEK 144 million (108) in the first quarter of 2022.
Earnings per share for the first quarter of 2022 were SEK 2.08 (1.56).
The return on equity in the first quarter of 2022 was 9.9% compared with 7.6% in the year-ago quarter.
The trailing-twelve-month return on equity was 35.7%, which is well above the 20% target.
Equity amounted to SEK 1,526 million (1,484) with an equity/assets ratio of 62% (69%) on 31 March 2022.
| SEK million | 2022 Q1 |
2021 Q1 |
2021 Full year |
Trailing 12 month |
|---|---|---|---|---|
| Incoming orders | 745 | 636 | 2,559 | 2,668 |
| Net sales | 644 | 572 | 2,325 | 2,398 |
| EBITA | 123 | 101 | 398 | 420 |
| EBITA margin | 19% | 18% | 17% | 18% |
Net sales rose 13% to SEK 644 million (572) in the first quarter of 2022. Foreign exchange movements boosted net sales by 4% and organic growth in the region reached 8%. The majority of operations have high rates of growth and improved profitability. The operations reporting strongest growth are ATC Tape Converting, which increased sales by 48%, Nexa Trading by 27% and Svenska Batteripoolen by 23%. OEM Automatic, the Group's largest company, recorded an 18% year-on-year increase in sales.
Incoming orders rose 17% to SEK 745 million (636) in the first quarter of 2022. Incoming orders were 16% higher than net sales.
EBITA rose 21% to SEK 123 million (101) in the first quarter of 2022, due primarily to increased sales with improved gross margin.
| SEK million | 2022 Q1 |
2021 Q1 |
2021 Full year |
Trailing 12 month |
|---|---|---|---|---|
| Incoming orders | 248 | 202 | 874 | 920 |
| Net sales | 215 | 178 | 791 | 829 |
| EBITA | 31 | 27 | 118 | 122 |
| EBITA margin | 14% | 15% | 15% | 15% |
Net sales rose 21% to SEK 215 million (178) in the first quarter of 2022. Favourable foreign exchange movements boosted net sales by 3%, which means that organic growth reached 18%. The operations reporting strongest growth are OEM Electronics Finland, the largest entity in the region OEM Automatic Finland and Rauheat, which increased sales by 37%, 29% and 26% respectively. Sales for the entity in China were down by 17% and for the entities in the Baltic states by 5%.
Incoming orders for the region rose 23% to SEK 248 million (202) in the first quarter of 2022. Incoming orders were 15% higher than net sales.
EBITA rose 16% till SEK 31 million (27) as a result of increased net sales.
| SEK million | 2022 Q1 |
2021 Q1 |
2021 Full year |
Trailing 12 month |
|---|---|---|---|---|
| Incoming orders | 300 | 180 | 744 | 864 |
| Net sales | 257 | 157 | 655 | 754 |
| EBITA | 33 | 13 | 56 | 76 |
| EBITA margin | 13% | 8% | 9% | 10% |
Net sales rose 63% to SEK 257 million (157) in the first quarter of 2022. Sales resulting from the acquisition of Demesne Electrical Sales in Ireland boosted net sales by 39%. Foreign exchange movements also had a positive 4% impact on net sales, resulting in organic growth of 20% in the region. The operations reporting strongest growth compared with the previous year are OEM Automatic Klitsø Denmark and OEM Automatic Norway, with an increase of 36% and 26% respectively. OEM Automatic in Hungary and Poland also experienced a strong quarter, with sales up 23% and 18% respectively.
Incoming orders rose 67% to SEK 300 million (180) in the first quarter of 2022. Incoming orders were 17% higher than net sales.
EBITA rose 153% to SEK 33 million (13). This was mainly a result of higher net sales and improved gross margin in comparable entities, plus the contribution from acquired business.
Operating cash flow was SEK 4 million (49) in the first quarter of 2022. Total cash flow was SEK -33 million (46) and was affected by investing activities amounting to SEK -111 million (-1).
The Group's investments in fixed assets in the first quarter of 2022 totalled SEK 187 million (1). Property, machinery and equipment accounted for SEK 5 million (1), and intangible assets for SEK 182 million (0), SEK 182 million (0) of which is related to business acquisitions.
Cash and cash equivalents, comprising cash and bank balances, amounted to SEK 114 million (424) on 31 March 2022. Cash and cash equivalents, together with committed and undrawn credit facilities, amounted to SEK 437 million (797) on 31 March 2022. The Group's interest-bearing financial liabilities totalled SEK 180 million (107), of which SEK 50 million (56) are liabilities recognised in accordance with IFRS 16 Leases.
Amortisation of intangible assets totalling SEK 6.6 million (3.7) was charged to the income statement in the first quarter of 2022. On 31 March 2022, intangible assets amounted to SEK 353 million (185).
On 31 March 2022, the equity/assets ratio was 62% (69%).
The Group's average number of employees in the first quarter of 2022 was 943 (878). The number of employees at the end of the period was 957 (881). The increase is due in part to the acquisition of a business with 46 employees (-).
OEM did not repurchase any shares during the period. On 31 March 2022, OEM held a total of 185,541 treasury shares. The holding corresponds to 0.3% of the total number of shares. The repurchase mandate granted by the General Meeting is for up to 10% of the shares, which is 6,950,792 shares.
On 13 January 2022, all of the shares in Demesne Electrical Sales Ltd were acquired. The company was acquired through the transfer of all shares in the parent company Balfe Securities Limited. Demesne Electrical Sales is Ireland's leading independent importer and distributor of electrical control, switch-gear, energy-saving and installation products. It has 52 employees and an annual turnover of approximately SEK 205 million. The company has its head office in Dublin. The company became part of Region Denmark, Norway, the British Isles and East Central Europe on 1 January 2022. The consideration for the business acquired was SEK 209.3 million, plus contingent considerations estimated at SEK 71.4 million, based on how the business develops in 2022 and 2023.
The analysis of acquisition that has been made is a preliminary analysis due to the short amount of time between the date of acquisition and the preparation of the interim report.
| The acquired company's net assets at the time of acquisition | Group fair value |
|---|---|
| Intangible fixed assets | 91.2 |
| Other fixed assets | 3.4 |
| Inventories | 22.8 |
| Trade and other receivables | 71.3 |
| Cash and cash equivalents | 20.2 |
| Deferred tax liability | -11.4 |
| Trade payables and other operating liabilities | -78.9 |
| Net identifiable assets/liabilities | 118.6 |
| Consolidated goodwill | 90.7 |
| Cash consideration | 209.3 |
Cash consideration comprises cash payment of a fixed purchase price of SEK 125.7 million, a withheld amount on the fixed purchase price of SEK 12.2 million and a contingent consideration of SEK 71.4 million.
As a result of the acquisition, other intangible fixed assets increase by SEK 181.9 million, relating to supplier relationships and goodwill. Supplier relationships will be amortised over a 5-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 71.4 million for the acquisitions this year. The period for contingent consideration is three (3) years at most and the earn-out is capped at SEK 79.5 million. Both the base consideration and the contingent consideration are settled in cash.
External transaction expenses linked to acquisitions amount to SEK 1.5 million (-) in the period.
Developments in previously implemented acquisitions have not resulted in a remeasurement of contingent consideration recognised as a liability. Acquisition-related consideration liabilities (both absolute and contingent) on 31 March 2022 totalled SEK 87 million (5.4).
This condensed consolidated interim report has been prepared in accordance with IAS 34, Interim Financial Reporting, and with relevant provisions in 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 2022 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 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, in the opinion of management, there have been no significant changes 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.
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 pages 32 and 33 and pages 78 to 81 of the 2021 Annual Report.
In addition to the risks and uncertainties set out in the 2021 Annual Report, along with the uncertainty surrounding the current geopolitical tensions, 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 have materially affected the financial position and performance of the Group or the Parent Company during the period, with the exception of inter-company dividends.
Net sales for the Parent Company in the first quarter of 2022 totalled SEK 20 million (14) and profit after financial items was SEK 16 million (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.
There are no other significant events to report after the close of the reporting period.
The escalating geopolitical tensions at the EU border with Ukraine are having an impact on world trade that is causing uncertainty about the economic outlook. Since the Group's sales to Ukraine and Russia are negligible, the direct impact of the situation on OEM is assessed as low. OEM has a few customers in the affected region with minimal sales activity. Deliveries to customers in Russia have been halted. A number of OEM's large customers, however, have customers of their own in the region and this will result in a decline in demand. Given OEM's total sales, this is not expected to impact its sales to any great extent. Group management and the management team of each company are monitoring developments closely and are adapting their strategies in order to best serve their customers.
Definitions can be found on page 16.
Tranås, Sweden, 26 April 2022
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 via email at [email protected]
or the CFO, Johan Broman, on +46 (0)75-242 40 02, or via email at [email protected].
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 26 April 2022 at 14.00 CET by Johan Broman.
SALES & EARNINGS BY REGION
Net sales (SEK million)
| Jan- mar |
Jan | ||||||
|---|---|---|---|---|---|---|---|
| mar | Q4 | Q3 | Q2 | Trailing | Full year | ||
| 2022 | 2021 | 2021 | 2021 | 2021 | 12 mån | 2021 | |
| Sweden, external income | 644 | 572 | 635 | 525 | 593 | 2 398 | 2 325 |
| Sweden, income from other segments | 53 | 42 | 43 | 42 | 44 | 183 | 172 |
| Finland, the Baltic States and China, external income | 215 | 178 | 211 | 195 | 207 | 829 | 791 |
| Finland, the Baltic States and China, income from other segments | 3 | 4 | 4 | 2 | 4 | 12 | 13 |
| Denmark, Norway, the British Isles and | |||||||
| East Central Europe, external income | 257 | 157 | 156 | 173 | 168 | 754 | 655 |
| Denmark, Norway, the British Isles and | |||||||
| East Central Europe, income from other segments | 1 | 1 | 1 | 1 | 1 | 4 | 4 |
| Elimination | -56 | -47 | -47 | -44 | -49 | -195 | -187 |
| 1 118 | 907 | 1 004 | 895 | 968 | 3 984 | 3 774 |
EBITA (MSEK)
| Jan- mar |
Jan | Q2 2021 |
Trailing 12 mån |
Full year 2021 |
|||
|---|---|---|---|---|---|---|---|
| mar | Q4 2021 |
Q3 | |||||
| 2022 | 2021 | 2021 | |||||
| Sweden | 123 | 101 | 89 | 98 | 110 | 420 | 398 |
| Finland, the Baltic States and China | 31 | 27 | 25 | 34 | 32 | 122 | 118 |
| Denmark, Norway,the British Isles and | |||||||
| East Central Europe | 33 | 13 | 10 | 18 | 14 | 76 | 56 |
| Group functions | 0 | -3 | 19 | 2 | 0 | 21 | 18 |
| 187 | 138 | 143 | 152 | 156 | 639 | 590 |
Operating profit (SEK million)
| Jan- mar |
Jan | Q3 | Q2 | Trailing | Full year | |
|---|---|---|---|---|---|---|
| mar | Q4 | |||||
| 2022 | 2021 | 2021 | 2021 | 2021 | 12 mån | 2021 |
| 187 | 138 | 143 | 152 | 156 | 639 | 590 |
| -1 | -1 | -1 | -1 | -1 | -3 | -4 |
| -1 | -2 | -1 | -2 | -2 | -5 | -6 |
| -4 | -1 | -1 | -1 | -1 | -6 | -3 |
| 181 | 135 | 141 | 149 | 153 | 624 | 578 |
Consolidated profit/loss (SEK million)
| Jan- | Jan | ||||||
|---|---|---|---|---|---|---|---|
| mar | mar | Q4 | Q3 | Q2 | Trailing | Full year | |
| 2022 | 2021 | 2021 | 2021 | 2021 | 12 mån | 2021 | |
| Operating profit | 181 | 135 | 141 | 149 | 153 | 624 | 578 |
| Net financial items | -2 | 0 | -1 | 0 | -2 | -5 | -2 |
| Pre-tax profit/(loss) | 179 | 136 | 140 | 149 | 151 | 619 | 576 |
| Specification of external income by region and product area | Sweden | Finland, the Baltic States and China, |
Denmark, Norway, the British Isles and East Central Europe |
Total | ||||
|---|---|---|---|---|---|---|---|---|
| Jan- | Jan- | Jan- | Jan- | Jan- | Jan- | Jan- | Jan | |
| mars | mars | mars | mars | mars | mars | mars | mars | |
| 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |
| Product Areas | ||||||||
| Automation | 257 | 195 | 134 | 105 | 192 | 153 | 582 | 453 |
| Components | 93 | 84 | 25 | 19 | 5 | 4 | 123 | 107 |
| Lighting & Installation components | 129 | 117 | 14 | 13 | 60 | - | 203 | 129 |
| Other | 165 | 176 | 42 | 41 | - | - | 208 | 218 |
| 644 | 572 | 215 | 178 | 257 | 157 | 1 116 | 907 |
CONDENSED CONSOLIDATED STATEMENT OF INCOME (SEK MILLION)
| Jan- mar 2022 |
Jan | Q3 | Q2 2021 |
Trailing 12 mån |
Full year 2021 |
||
|---|---|---|---|---|---|---|---|
| mar | Q4 | ||||||
| 2021 | 2021 | 2021 | |||||
| Operating income | |||||||
| Net sales | 1 118 | 907 | 1 004 | 895 | 968 | 3 984 | 3 774 |
| Other operating income | 2 | 0 | 0 | 2 | 2 | 6 | 4 |
| Operating costs* | |||||||
| Commodities | -703 | -577 | -641 | -571 | -617 | -2 532 | -2 406 |
| Staff costs | -175 | -148 | -163 | -132 | -151 | -620 | -594 |
| Other expenses | -40 | -30 | -40 | -29 | -30 | -140 | -130 |
| Depreciatione/amorisation of property, plant and | |||||||
| equipemnt and intangible fixed assets | -21 | -17 | -19 | -16 | -18 | -74 | -69 |
| Operating profit | 181 | 135 | 141 | 149 | 153 | 624 | 578 |
| Net financial income/expense | -2 | 0 | -1 | 0 | -2 | -5 | -2 |
| Pre-tax profit/(loss) | 179 | 136 | 140 | 149 | 151 | 620 | 576 |
| Tax | -35 | -27 | -29 | -31 | -32 | -127 | -119 |
| Profit/loss for the period | 144 | 108 | 111 | 119 | 119 | 493 | 457 |
| Earnings per outstanding share, SEK** | 2,08 | 1,56 | 1,60 | 1,71 | 1,72 | 7,11 | 6,59 |
* 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)
Other comprehensive income
| Profit/loss for the period | 144 | 108 | 111 | 119 | 119 | 493 | 457 |
|---|---|---|---|---|---|---|---|
| Items that have been transferred or may | |||||||
| recycled to net income | |||||||
| Exchange differences for the period on | |||||||
| translation of overseas operations | 7 | 9 | 4 | 2 | -3 | 11 | 12 |
| Items that can not be recycled to | |||||||
| net profit | |||||||
| Revaluation of defined | |||||||
| benefit pension plans | 0 | 1 | 0 | 0 | 0 | 1 | 1 |
| Other comprehensive income for the period | 8 | 9 | 4 | 3 | -3 | 12 | 13 |
| Comprehensive income for the period | 152 | 118 | 126 | 111 | 116 | 505 | 470 |
| EBITA | 187 | 138 | 143 | 152 | 156 | 639 | 590 |
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (SEK MILLION)
| 2022-03-31 | 2021-03-31 | 2021-12-31 | |
|---|---|---|---|
| Fixed assets | |||
| Goodwill | 253 | 147 | 147 |
| Other intangible assets | 100 | 38 | 30 |
| Total intangible assets | 353 | 185 | 177 |
| Property, plant and equipment | 351 | 317 | 344 |
| Total property, plant and equipment | 351 | 317 | 344 |
| Deferred tax assets | 8 | 8 | 7 |
| Financial assets | 0 | 0 | 0 |
| Total financial assets | 8 | 8 | 7 |
| Total fixed assets | 713 | 511 | 528 |
| Current assets |
|---|
| Inventories | 865 | 561 | 738 |
|---|---|---|---|
| Current receivables | 762 | 660 | 644 |
| Cash and cash equivalents | 114 | 424 | 145 |
| Total current assets | 1 741 | 1 644 | 1 526 |
| Total assets | 2 453 | 2 155 | 2 054 |
| Equity | 1 526 | 1 484 | 1 374 |
| Non-current interest-bearing liabilities | 35 | 39 | 30 |
| Provisions for pensions | 0 | 1 | 1 |
| Other provisions | 2 | 2 | 2 |
| Non-current non-interest-bearing liabilities | 51 | 4 | - |
| Deferred tax liabilities | 115 | 95 | 105 |
| Total non-current liabilities | 203 | 140 | 139 |
| Current interest-bearing liabilities | 145 | 68 | 60 |
| Current non-interest-bearing liabilities | 580 | 464 | 481 |
| Total current liabilities | 725 | 532 | 541 |
| Total equity and liabilities | 2 453 | 2 155 | 2 054 |
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (SEK MILLION)
| 2022-03-31 | 2021-03-31 | 2021-12-31 | |
|---|---|---|---|
| At beginning of year | 1 374 | 1 366 | 1 366 |
| Comprehensive income for the period | |||
| Profit/loss for the period | 144 | 108 | 457 |
| Other comprehensive income for the period | 8 | 9 | 13 |
| Comprehensive income for the period | 152 | 118 | 470 |
| Dividends paid | - | - | -173 |
| Repurchase of shares | - | - | -289 |
| At the end of the period | 1 526 | 1 484 | 1 374 |
CONDENSED CONSOLIDATED CASH FLOW STATEMENT (SEK MILLION)
| Jan- mar 2022 |
Jan mar 2021 |
Q2 2021 |
Trailing 12 mån |
Full year | |||
|---|---|---|---|---|---|---|---|
| Q4 2021 |
Q3 2021 |
||||||
| 2021 | |||||||
| Operating cash flows | |||||||
| before movements in working capital | 161 | 126 | 138 | 141 | 125 | 565 | 530 |
| Movements in working capital | -158 | -77 | -57 | -67 | -9 | -291 | -211 |
| Operating cash flows | |||||||
| 4 | 49 | 80 | 74 | 116 | 274 | 319 | |
| Acquisition of subsidiaries | |||||||
| net effet on cash and cash equivalents | -107 | 0 | -1 | 0 | 0 | -108 | -1 |
| Acquisition of intangible fixed assets | 0 | 0 | -2 | 0 | 0 | -3 | -3 |
| Acquisition of property, plant and equipment | -5 | -1 | -6 | -42 | -2 | -55 | -51 |
| Sales of property, plant and equipment | 1 | 0 | 0 | 0 | 0 | 1 | 1 |
| Investing cash flows | -111 | -1 | -9 | -42 | -2 | -165 | -54 |
| Financing cash flows | |||||||
| - Loan raised | 0 | 1 | 0 | 0 | 0 | 1 | 1 |
| - Loan amortisation | -4 | -3 | -2 | -1 | 0 | -7 | -6 |
| - Repayment of lease liabilities | -9 | -8 | -8 | -9 | -9 | -35 | -34 |
| - Change in bank overdrafts | 87 | 9 | -40 | 17 | 17 | 81 | 3 |
| - Dividends paid | 0 | 0 | 0 | 0 | -173 | -173 | -173 |
| - Repurchase of shares | 0 | 0 | 0 | 0 | -289 | -289 | -289 |
| Financing cash flow | 74 | -2 | -50 | 7 | -453 | -422 | -498 |
| Cash flow for the period | -33 | 46 | 21 | 39 | -339 | -312 | -233 |
| Cash and cash equivalents at the beginning of the period | 145 | 376 | -507 | 84 | 424 | 424 | 376 |
| Exchange rate difference | 3 | 2 | 1 | 0 | -1 | 3 | 2 |
| Cash and cash equivalents at the end of the period | 114 | 424 | -485 | 122 | 84 | 114 | 145 |
KEY PERFORMANCE INDICATORS
| Jan- mar |
Jan | Q3 2021 |
Q2 2021 |
Trailing 12 mån |
Full year 2021 |
||
|---|---|---|---|---|---|---|---|
| mar | Q4 | ||||||
| 2022 2021 |
2021 | ||||||
| Return on equity, % | 9,9 | 7,6 | 7,2 | 8,0 | 10,6 | 35,7 | 33,4 |
| Return on capital employed, % | 12,0 | 9,3 | 9,3 | 9,7 | 12,8 | 43,8 | 41,1 |
| Return on total capital % | 8,3 | 6,7 | 6,5 | 7,2 | 8,8 | 30,8 | 29,2 |
| Equity/assets ratio, % | 62,2 | 68,8 | 66,9 | ||||
| Earnings per outstanding share, SEK* | 2,08 | 1,56 | 1,60 | 1,71 | 1,72 | 7,11 | 6,59 |
| Earnings per total shares, SEK* | 2,07 | 1,56 | 1,60 | 1,71 | 1,71 | 7,09 | 6,58 |
| Equity per total shares, SEK | 21,95 | 19,77 | |||||
| Average number of outstanding shares (thousands) | 69 322 | 69 322 | 69 322 | 69 322 | 69 322 | 69 322 | 69 322 |
| Average total shares (thousands) | 69 508 | 69 508 | 69 508 | 69 508 | 69 508 | 69 508 | 69 508 |
| Operating margin, % | 16,2 | 14,9 | 14,0 | 16,7 | 15,8 | 15,7 | 15,3 |
| EBITA-margin, % | 16,7 | 15,2 | 14,3 | 17,0 | 16,2 | 16,1 | 15,6 |
* 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)
| Jan- | Jan | ||||||
|---|---|---|---|---|---|---|---|
| mar | mar | Q4 | Q3 | Q2 | Trailing | Full year | |
| 2022 | 2021 | 2021 | 2021 | 2021 | 12 mån | 2021 | |
| Net sales | 20 | 14 | 38 | 14 | 17 | 89 | 83 |
| Other operating income | - | - | - | - | - | - | - |
| Operating costs | -17 | -15 | -16 | -13 | -17 | -64 | -62 |
| Depreciation | -1 | -1 | -1 | -1 | -1 | -4 | -4 |
| Operating profit | 2 | -2 | 20 | 0 | -1 | 21 | 18 |
| Income from investments | 0 | ||||||
| in Group companies | 16 | 6 | 0 | 0 | 84 | 100 | 90 |
| Other financial income/expense, Net | -2 | 0 | 0 | 0 | -1 | -3 | -1 |
| Profit/loss after financial items | 16 | 4 | 20 | 0 | 82 | 118 | 106 |
| Year-end appropriations | 0 | - | 299 | 0 | 0 | 299 | 299 |
| Pre-tax profit/(loss) | 16 | 4 | 320 | 0 | 82 | 417 | 406 |
| Tax | 0 | 0 | -67 | 0 | 1 | -66 | -66 |
| Profit/loss for the period | 16 | 4 | 253 | 0 | 83 | 352 | 339 |
Comprehensive income for the period corresponds with the profit/loss for the period.
CONDENSED BALANCE SHEET OF THE PARENT COMPANY (SEK MILLION)
| Assets | 2022-03-31 | 2021-03-31 | 2021-12-31 |
|---|---|---|---|
| Intangible fixed assets | 3 | 5 | 3 |
| Property, plant and equipment | 17 | 17 | 17 |
| Financial assets | 622 | 374 | 412 |
| Total fixed assets | 643 | 396 | 432 |
| Current receivables | 584 | 484 | 678 |
| Cash on hand and demand deposits | 0 | 292 | 15 |
| Total current assets | 584 | 776 | 693 |
| Total assets | 1 227 | 1 172 | 1 125 |
| Equity and liabilities | |||
| Equity | |||
| Non-distributable equity | 71 | 76 | 74 |
| Distributable equity | 538 | 644 | 519 |
| Total shareholders' equity | 609 | 720 | 593 |
| Untaxed reserves | 390 | 333 | 390 |
| Deferred tax liabilities | 2 | 2 | 2 |
| Non-current non-interest-bearing liabilities | 51 | 2 | - |
| Total non-current liabilities | 51 | 2 | - |
| Current interest-bearing liabilities | 69 | - | - |
| Current non-interest-bearing liabilities | 106 | 115 | 140 |
| Total current liabilities | 175 | 115 | 140 |
| Total equity and liabilities | 1 227 | 1 172 | 1 125 |
Segment reporting is presented on pages 5, 6 and 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 and impairment 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 reduced by 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 business units in 15 countries
For almost 50 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 15 countries in northern Europe, East Central Europe, the British Isles 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, machinery components & cables, pressure & flow components, motors, ball bearings & brakes, 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.
