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OEM International
Quarterly Report • Oct 19, 2023
3090_10-q_2023-10-19_aa41c9b5-9d01-4b7f-b48e-4f135982ad46.pdf
Quarterly Report
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Interim report Q3 2023
Third quarter 2023
- Incoming orders rose 3% to SEK 1,093 million (1,057)
- ● Net sales rose 3% to SEK 1,198 million (1,158)
- Operating profit rose 8% to SEK 185 million (172)
- EBITA rose 7% to SEK 192 million (180)
- Profit after tax rose 7% to SEK 145 million (135)
- Earnings per share were SEK 1.05 (0.98)
January - September 2023
- Incoming orders were down 1% to SEK 3,613 million (3,646)
- ● Net sales rose 11% to SEK 3,849 million (3,467)
- Operating profit rose 10% to SEK 608 million (554)
- EBITA rose 10% to SEK 630 million (575)
- Profit after tax rose 9% to SEK 477 million (436)
- Earnings per share were SEK 3.44 (2.50)
Sales increased in the third quarter by 3%, which represents a slowdown compared with relatively strong demand in the first six months of the year. The impact of currency movements added 6 percentage points to revenue growth, leading to 2% negative growth on an organic basis. The widespread slowdown in economic activity is now clearly having an impact on demand and it is the first time since 2013 that the company has experienced negative organic growth in a single quarter.
Incoming orders were down 9% on sales, which is due to generally weaker forecasts from customers and because lead times for orders have returned to normal. Relative to sales, there has been a gradual decline in the order book from the peak in 2021, but it is still at a high level.
Operating profit (EBITA) rose 7% and the EBITA margin stood at 16.1% (15.6%). The EBITA margin for the first 9 months of 2023 remains at an historically high level, albeit slightly lower than the corresponding period last year.
Most of the operations experienced a slowdown in demand and a number of companies report lower sales volumes this quarter than in the same quarter last year.
Region Sweden recorded a 2% increase in sales, with exchange rate movements having a 4 percentage-point impact, leading to negative growth of 2 percentage points on an organic basis. The strongest growth in the third quarter was delivered by Telfa and OEM Automatic, the Group's largest company.
Region Finland, the Baltic states and China also saw an increase in sales by 2%, with exchange rate movements having an 8-percentage-point impact, leading to negative growth of 6 percentage points on an organic basis. The strongest growth was posted by Motor & Bearings and OEM Electronics.
Region Denmark, Norway, the British Isles and East Central Europe reported a 9% rise in sales, boosted 8 percentage points by currency movements, giving growth of 1% on an organic basis. The operations in Automatic Hungary, Ireland and Slovakia showed the strongest growth.
The third quarter saw a drop-off in growth momentum for OEM and the economic situation in general has been subdued by the instability and unrest that the world economy is currently facing. The market dynamics have changed as a result of the uncertain economic environment and the expectation of a further downturn in 2024, and growth will depend entirely on strengthening relationships with existing customers and finding totally new business opportunities together with acquisitions of new businesses. OEM's organisation is fuelled by creativity and an innovative spirit and, because of this, I strongly believe that we will gain new market share and bolster our position in the market in spite of the challenging economic backdrop.
Jörgen Zahlin Managing Director and Chief Executive Officer
Incoming orders amounted to SEK 1,093 million
(1,057) in the third quarter of 2023, which is an increase of 3%. In the third quarter, incoming orders were 9% lower than net sales.
On 30 September 2023, the order book stood at SEK 925 million (1,147), down 19% on the same date last year.
Net sales increased by 3% to SEK 1,198 million (1,158) in the third quarter of 2023. The impact on sales from exchange rate movements was 6%, which results in a 3% decrease in organic revenue.
The highest percentage net sales growth year over year was reported by OEM Automatic Hungary, Telfa and OEM Automatic Sweden.
Region Sweden drops one percentage point to 55% of Group sales. Region Finland, the Baltic states and China drops two percentage points, and Region Denmark, Norway, the British Isles and East Central Europe increases by three percentage points.
Note: The return on equity for each quarter is listed by four to provide a better comparison with the trailing twelve months in the diagram.
In the third quarter of 2023, EBITA, operating profit before amortisation and impairment of acquisition-related intangible fixed assets, rose 7% to SEK 192 million (180).
The EBITA margin stood at 16.1% (15.6%) in the third quarter.
The EBITA margin for the trailing twelve months was 16.0%.
Operating profit rose 8% to SEK 185 million (172) in the third quarter of 2023, delivering an operating margin of 15.5% (14.9%).
In the third quarter of 2023, profit after tax stood at SEK 145 million (135).
Earnings per share for the third quarter of 2023 were SEK 1.05 (0.98).
The return on equity in the third quarter of 2023 was 7.7% compared with 8.4% in the year-ago quarter.
The trailing-twelve-month return on equity was 35.3%, which is well above the 25% target.
Shareholders' equity amounted to SEK 1,892 million (1,435) with an equity/assets ratio of 66% (54%) on 30 September 2023.
| SEK million | 2023 Q3 |
2022 Q3 |
2023 Q1 – Q3 |
2022 Q1 – Q3 |
2022 Full year |
Trailing 12 month |
|---|---|---|---|---|---|---|
| Incoming orders | 621 | 635 | 2,050 | 2,136 | 2,835 | 2,749 |
| Net sales | 657 | 646 | 2,171 | 1,982 | 2,745 | 2,934 |
| EBITA | 118 | 112 | 396 | 369 | 506 | 533 |
| EBITA margin | 18% | 17% | 18% | 19% | 18% | 18% |
Net sales rose 2% to SEK 657 million (646) in the third quarter of 2023. Foreign exchange movements boosted net sales by 4%, which represents a 2% decrease on an organic basis. The operations reporting strongest growth are Telfa and OEM Automatic, whose sales increased by 21% and 12% respectively.
Incoming orders were down 2% to SEK 621 million (635) in the third quarter of 2023. Incoming orders were 6% lower than net sales.
In the third quarter of 2023, EBITA rose 5% to SEK 118 million (112), due to the combination of increased net sales and a lower cost base.
| SEK million | 2023 Q3 |
2022 Q3 |
2023 Q1 – Q3 |
2022 Q1 – Q3 |
2022 Full year |
Trailing 12 month |
|---|---|---|---|---|---|---|
| Incoming orders | 215 | 209 | 722 | 724 | 963 | 961 |
| Net sales | 253 | 248 | 780 | 715 | 969 | 1,034 |
| EBITA | 37 | 39 | 107 | 110 | 137 | 133 |
| EBITA margin | 15% | 16% | 14% | 15% | 14% | 13% |
Net sales rose 2% to SEK 253 million (248) in the third quarter of 2023. Foreign exchange movements boosted net sales by 8%, which represents a 6% decrease on an organic basis. The operations reporting strongest growth are Motor & Bearings and OEM Electronics, whose sales increased by 5% and 4% respectively. The region's largest entity, OEM Automatic, posted a 3% decrease.
Incoming orders for the region rose 3% to SEK 215 million (209) in the third quarter of 2023. Incoming orders were 15% lower than net sales.
In the third quarter of 2023, EBITA fell 3% to SEK 37 million (39) due to increased costs.
| SEK million | 2023 Q3 |
2022 Q3 |
2023 Q1 – Q3 |
2022 Q1 – Q3 |
2022 Full year |
Trailing 12 month |
|---|---|---|---|---|---|---|
| Incoming orders | 257 | 214 | 841 | 785 | 1,034 | 1,089 |
| Net sales | 288 | 264 | 898 | 770 | 1,017 | 1,145 |
| EBITA | 36 | 27 | 121 | 91 | 118 | 148 |
| EBITA margin | 12% | 10% | 14% | 12% | 12% | 13% |
Net sales rose 9% to SEK 288 million (264) in the third quarter of 2023. Foreign exchange movements boosted net sales by 8%, which gives an increase of 1% on an organic basis. The operations reporting strongest year-over-year growth are OEM Automatic Hungary, OEM Automatic Slovakia and Demesne Electrical Sales, with an increase of 34%, 10% and 10% respectively.
Incoming orders rose 20% to SEK 257 million (214) in the third quarter of 2023. Incoming orders were 11% lower than net sales.
EBITA rose 31% to SEK 36 million (27), due to the combination of higher net sales and gross margin improvement.
Cash flow from operating activities in the third quarter of 2023 amounted to SEK 127 million (52). The total cash flow was SEK 62 million (-10). This was impacted by outflows of SEK -7 million (-30) and SEK -58 million (-32), related to investing and financing activities respectively.
The Group's investments in fixed assets in the third quarter of 2023 amounted to SEK 8 million (6) and are attributable to property, plant and equipment of SEK 7 million (4) and intangible assets of SEK 1 million (2).
Cash and cash equivalents, comprising cash and bank balances, amounted to SEK 112 million (60) on 30 September 2023. Cash and cash equivalents, together with committed and undrawn credit facilities, amounted to SEK 588 million (240) on 30 September 2023. The Group's interest-bearing financial liabilities totalled SEK 207 million (417), of which SEK 69 million (42) are liabilities recognised in accordance with IFRS 16 Leases.
Amortisation of intangible assets totalling SEK 8.0 million (8.9) has been charged to the income statement for the third quarter of 2023. On 30 September 2023, intangible assets amounted to SEK 333 million (339).
The equity/assets ratio was 66% (54%) on 30 September 2023.
The average number of employees in the Group during the period January to September 2023 was 1,010 (960). At the end of the period, the number of employees was 1,019 (989).
OEM did not repurchase any shares during the period. On 30 September 2023, the company held a total of 371,082 treasury shares. The holding represents 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 13,901,584 shares.
A total of 153,500 options have been subscribed for under the share-related incentive scheme, approved at the 2023 Annual General Meeting, which offers some 50 executives the option to purchase up to 200,000 bought-back shares. The call options have been transferred at a price of SEK 12.77 per option and the exercise price for the call options is SEK 122.00, corresponding to 120% of the average share price in the period 8 to 19 May 2023. Each call option entitles the holder to acquire one Class B share during the period 2 March to 15 June 2026.
After this, OEM's outstanding call option scheme includes a total of 306,000 options.
In 2022, the call options were transferred at a price of SEK 6.64 per option and the exercise price for the call options was SEK 86.60, corresponding to 120% of the average share price in the period 9 to
20 May 2022. Each call option entitles the holder to acquire one Class B share during the period 1 March to 15 June 2025.
Developments in previously implemented acquisitions have not resulted in a remeasurement of contingent consideration recognised as a liability. In the first quarter of 2023, a SEK 27 million payment was made relating to an additional consideration, recognised as a liability, in connection with the acquisition of Demesne Electrical Sales Ltd. Remaining considerations (both fixed and contingent) recognised as liabilities related to acquisitions as at 30 September 2023 amounted to SEK 60 million (83).
This condensed interim report for the Group has been prepared in accordance with the requirements of IAS 34 Interim Financial Reporting and the applicable provisions of the Swedish Annual Accounts Act. The interim report for the Parent Company has been prepared in accordance with the requirements of Chapter 9 of the Swedish Annual Accounts Act, Interim Report. 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 2023 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. A full description of risks to which the Group is exposed can be found on pages 32-33 and 78-81 of the 2022 Annual Report. Other than the risks and uncertainties set out in the 2022 Annual Report, no significant risks or uncertainties have been identified or removed.
Customer demand remains at a high level despite it slowing in some sectors. High inflation and interest rates are having an impact on the markets in which OEM operates and are increasing the risk of a further slowdown in the economy.
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 third quarter of 2023 amounted to SEK 27 million (20) and profit after financial items was SEK 78 million (32). Net sales relate entirely to inter-company transactions. The foregoing risks and uncertainties specified for the Group also apply indirectly to the Parent Company.
Lagermetall AB, with an annual turnover of approximately SEK 100 million, was acquired on 13 October. Lagermetall is a supplier of bronze alloys, slide bearings and slide elements and its offering complements OEM's existing range of products. The acquisition is expected to have a marginal impact on OEM's profit for 2023.
The Nomination Committee for the Annual General Meeting on 23 April 2024 is composed of: Petter Stillström, AB Traction (Chair) Richard Pantzar, Orvaus AB Mattias Franzén Agne Svenberg The Nomination Committee can be contacted through Petter Stillström, tel. +46 (0)70-747 56 61 or via e-mail [email protected]
The Financial Statement, Full Year 2023, will be published on 19 February 2024.
Definitions can be found on page 16.
Tranås, 19 October 2023
Jörgen Zahlin Managing Director and Chief Executive Officer
The report has been subject to a special review 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 19 October 2023 at 14.00 CET by Johan Broman.
SALES & EARNINGS BY REGION
Net sales (SEK million)
| Jan- | Jan | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| sept | sept | Q3 | Q2 | Q1 | Q4 | Q3 | Trailing | Full year | |
| 2023 | 2022 | 2023 | 2023 | 2022 | 2022 | 2022 | 12 mth | 2022 | |
| 2 171 | |||||||||
| Sweden, external income | 1 982 | 657 | 729 | 785 | 763 | 646 | 2 934 | 2 745 | |
| Sweden, income from other segments | 203 | 218 | 62 | 66 | 75 | 65 | 78 | 268 | 283 |
| Finland, the Baltic States and China, external income | 780 | 715 | 253 | 265 | 262 | 254 | 248 | 1 034 | 969 |
| Finland, the Baltic States and China, income from other segments | 65 | 61 | 18 | 22 | 24 | 20 | 22 | 85 | 81 |
| Denmark, Norway, the British Isles and | |||||||||
| East Central Europe, external income | 898 | 770 | 288 | 302 | 307 | 247 | 264 | 1 145 | 1 017 |
| Denmark, Norway, the British Isles and | |||||||||
| East Central Europe, income from other segments | 17 | 21 | 5 | 6 | 7 | 5 | 4 | 23 | 26 |
| Elimination | -286 | -300 | -86 | -94 | -106 | -90 | -104 | -376 | -390 |
| 3 849 | 3 467 | 1 198 | 1 296 | 1 355 | 1 264 | 1 158 | 5 113 | 4 731 | |
| EBITA (MSEK) | |||||||||
| Jan- | Jan | ||||||||
| sept | sept | Q3 | Q2 | Q1 | Q4 | Q3 | Trailing | Full year | |
| 2023 | 2022 | 2023 | 2023 | 2022 | 2022 | 2022 | 12 mth | 2022 | |
| Sweden | 396 | 369 | 118 | 128 | 150 | 136 | 112 | 533 | 506 |
| Finland, the Baltic States and China | 107 | 110 | 37 | 34 | 35 | 27 | 39 | 133 | 137 |
| Denmark, Norway,the British Isles and | |||||||||
| East Central Europe | 121 | 91 | 36 | 44 | 41 | 27 | 27 | 148 | 118 |
| Group functions | 6 | 5 | 1 | 4 | 0 | -2 | 3 | 4 | 3 |
| 630 | 575 | 192 | 210 | 227 | 188 | 180 | 817 | 763 | |
| Operating profit (SEK million) | |||||||||
| Jan- | Jan | ||||||||
| sept | sept | Q3 | Q2 | Q1 | Q4 | Q3 | Trailing | Full year | |
| 2023 | 2022 | 2023 | 2023 | 2022 | 2022 | 2022 | 12 mth | 2022 | |
| EBITA | 630 | 575 | 192 | 210 | 227 | 188 | 180 | 817 | 763 |
| Amortisation and write-downs of acquisition-related | |||||||||
| intangible fixed assets. Sweden |
-2 | -2 | -1 | -1 | -1 | -1 | -1 | -3 | -3 |
| 0 | -1 | 0 | 0 | 0 | 0 | 0 | 0 | -1 | |
| Finland, the Baltic States and China, | |||||||||
| Denmark, Norway, the British Isles and | |||||||||
| East Central Europe | -20 | -18 | -7 | -7 | -6 | -6 | -7 | -26 | -24 |
| Operating profit | 608 | 554 | 185 | 203 | 220 | 181 | 172 | 789 | 735 |
| Consolidated profit/loss (SEK million) | |||||||||
| Jan- | Jan | ||||||||
| sept | sept | Q3 | Q2 | Q1 | Q4 | Q3 | Trailing | Full year | |
| 2023 | 2022 | 2023 | 2023 | 2022 | 2022 | 2022 | 12 mth | 2022 | |
| Operating profit | 608 | 554 | 185 | 203 | 220 | 181 | 172 | 789 | 735 |
| Net financial items | -9 | -7 | -4 | -1 | -3 | -4 | -3 | -12 | -11 |
| Pre-tax profit/(loss) | 600 | 547 | 182 | 202 | 216 | 177 | 169 | 777 | 724 |
| Denmark, Norway, the | |||||||||
| Sweden | Finland, the Baltic | British Isles and East | Total | ||||||
| States and China, | Central Europe | ||||||||
| Specification of external income by region and product area | |||||||||
| Jan- | Jan- | Jan- | Jan- | Jan- | Jan- | Jan- | Jan | ||
| sept | sept | sept | sept | sept | sept | sept | sept | ||
| 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | ||
| Product Areas | |||||||||
| Automation | 835 | 708 | 479 | 431 | 640 | 569 | 1 954 | 1 709 | |
| Components | 335 | 307 | 94 | 79 | 18 | 15 | 446 | 402 |
Lighting & Installation components 387 386 50 41 238 186 674 613 Other 615 581 157 163 2 0 774 744
2 171 1 982 780 715 898 770 3 849 3 467
CONDENSED CONSOLIDATED STATEMENT OF INCOME (SEK MILLION)
| Jan- | Jan | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| sept | sept | Q3 | Q2 | Q1 | Q4 | Q3 | Trailing | Full year | |
| 2023 | 2022 | 2023 | 2023 | 2022 | 2022 | 2022 | 12 mth | 2022 | |
| Operating income | |||||||||
| Net sales | 3 849 | 3 467 | 1 198 | 1 296 | 1 355 | 1 264 | 1 158 | 5 114 | 4 731 |
| Other operating income | 0 | 2 | 0 | 0 | 0 | 0 | 0 | 0 | 2 |
| Operating costs* | |||||||||
| Commodities | -2 460 | -2 209 | -775 | -827 | -858 | -812 | -754 | -3 272 | -3 021 |
| Staff costs | -559 | -508 | -167 | -189 | -203 | -193 | -163 | -753 | -702 |
| Other expenses | -154 | -132 | -48 | -55 | -51 | -55 | -46 | -209 | -187 |
| Depreciatione/amorisation of property, plant and | |||||||||
| equipemnt and intangible fixed assets | -68 | -66 | -23 | -23 | -22 | -23 | -22 | -91 | -89 |
| Operating profit | 608 | 554 | 185 | 203 | 220 | 181 | 172 | 789 | 735 |
| Net financial income/expense | -9 | -7 | -4 | -1 | -3 | -4 | -4 | -12 | -11 |
| Pre-tax profit/(loss) | 600 | 547 | 182 | 202 | 216 | 177 | 169 | 777 | 724 |
| Tax | -123 | -111 | -37 | -45 | -41 | -37 | -34 | -160 | -148 |
| Profit/loss for the period | 477 | 436 | 145 | 157 | 175 | 140 | 135 | 617 | 576 |
| Earnings per outstanding share, SEK** | 3,44 | 3,14 | 1,05 | 1,13 | 1,26 | 1,01 | 0,98 | 4,45 | 4,15 |
* 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 | 477 | 436 | 145 | 157 | 175 | 140 | 135 | 617 | 576 |
| Items that have been transferred or may | |||||||||
| recycled to net income | |||||||||
| Exchange differences for the period on | |||||||||
| translation of overseas operations | 31 | 41 | -24 | 44 | 11 | 15 | 9 | 45 | 56 |
| Items that can not be recycled to | |||||||||
| net profit | |||||||||
| Revaluation of defined | |||||||||
| benefit pension plans | 0 | 1 | 0 | 0 | 0 | -2 | 0 | -2 | -1 |
| Other comprehensive income for the period | 31 | 42 | -24 | 44 | 11 | 13 | 10 | 44 | 55 |
| Comprehensive income for the period | 508 | 478 | 121 | 201 | 186 | 153 | 145 | 660 | 630 |
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (SEK MILLION)
| 2023-09-30 | 2022-09-30 | 2022-12-31 | ||
|---|---|---|---|---|
| Fixed assets | ||||
| Goodwill | 234 | 219 | 229 | |
| Other intangible assets | 99 | 120 | 115 | |
| Total intangible assets | 333 | 339 | 344 | |
| Property, plant and equipment | 396 | 342 | 356 | |
| Total property, plant and equipment | 396 | 342 | 356 | |
| Deferred tax assets | 7 | 6 | 7 | |
| Financial assets | 0 | 1 | 0 | |
| Total financial assets | 7 | 7 | 8 | |
| Total fixed assets | 737 | 688 | 707 |
| Current assets | ||
|---|---|---|
| Inventories | 1 137 | 1 046 | 1 183 |
|---|---|---|---|
| Current receivables | 896 | 851 | 805 |
| Cash and cash equivalents | 112 | 60 | 109 |
| Total current assets | 2 145 | 1 957 | 2 097 |
| Total assets | 2 882 | 2 645 | 2 804 |
| Equity | 1 892 | 1 435 | 1 590 |
| Non-current interest-bearing liabilities | 51 | 31 | 33 |
| Provisions for pensions | 1 | 1 | 2 |
| Other provisions | 2 | 2 | 2 |
| Non-current non-interest-bearing liabilities | 33 | 54 | 59 |
| Deferred tax liabilities | 133 | 117 | 134 |
| Total non-current liabilities | 220 | 206 | 229 |
| Current interest-bearing liabilities | 156 | 386 | 345 |
| Current non-interest-bearing liabilities | 614 | 618 | 640 |
| Total current liabilities | 770 | 1 004 | 985 |
| Total equity and liabilities | 2 882 | 2 645 | 2 804 |
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (SEK MILLION)
| 2023-09-30 | 2022-09-30 | 2022-12-31 | ||
|---|---|---|---|---|
| At beginning of year | 1 590 | 1 374 | 1 374 | |
| Comprehensive income for the period | ||||
| Profit/loss for the period | 477 | 436 | 576 | |
| Other comprehensive income for the period | 31 | 42 | 55 | |
| Comprehensive income for the period | 508 | 478 | 630 | |
| Dividends paid | -208 | -191 | -191 | |
| Repurchase of shares | - | -225 | -225 | |
| Call options | 2 | 1 | 1 | |
| At the end of the period | 1 892 | 1 435 | 1 590 |
CONDENSED CONSOLIDATED CASH FLOW STATEMENT (SEK MILLION)
| Jan- | Jan | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| sept | sept | Q3 | Q2 | Q1 | Q4 | Q3 | Trailing | Full year | |
| 2023 | 2022 | 2023 | 2023 | 2022 | 2022 | 2022 | 12 mth | 2022 | |
| Operating cash flows | |||||||||
| before movements in working capital | 570 | 519 | 177 | 192 | 201 | 172 | 172 | 743 | 690 |
| Movements in working capital | -72 | -358 | -51 | 5 | -27 | -69 | -119 | -142 | -428 |
| Operating cash flows | |||||||||
| 498 | 161 | 127 | 197 | 174 | 102 | 52 | 600 | 263 | |
| Acquisition of subsidiaries | |||||||||
| net effet on cash and cash equivalents | -28 | -131 | 0 | 0 | -27 | 0 | -24 | -28 | -132 |
| Acquisition of intangible fixed assets | -4 | -2 | -1 | -2 | -2 | -1 | -2 | -5 | -3 |
| Acquisition of property, plant and equipment | -33 | -10 | -7 | -9 | -17 | -8 | -4 | -41 | -19 |
| Sales of property, plant and equipment | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1 |
| Investing cash flows | -64 | -143 | -7 | -11 | -46 | -9 | -30 | -73 | -153 |
| Financing cash flows | |||||||||
| - Loan raised | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| - Loan amortisation | 0 | -7 | 0 | 0 | 0 | 0 | 0 | 0 | -7 |
| - Repayment of lease liabilities | -28 | -28 | -9 | -9 | -9 | -9 | -10 | -37 | -37 |
| - Change in bank overdrafts | -199 | 344 | -48 | -56 | -95 | -38 | -22 | -237 | 306 |
| - Call options | 2 | 1 | 0 | 2 | 0 | 0 | 0 | 2 | 1 |
| - Dividends paid | -208 | -191 | 0 | -208 | 0 | 0 | 0 | -208 | -191 |
| - Repurchase of shares | 0 | -225 | 0 | 0 | 0 | 0 | 0 | 0 | -225 |
| Financing cash flow | -433 | -106 | -58 | -271 | -104 | -47 | -32 | -480 | -152 |
| Cash flow for the period | 1 | -89 | 62 | -85 | 24 | 47 | -10 | 48 | -42 |
| Cash and cash equivalents at the beginning of the period | 109 | 145 | 53 | 133 | 109 | 60 | 69 | 169 | 145 |
| Exchange rate difference | 2 | 5 | -2 | 4 | 1 | 2 | 2 | 5 | 7 |
| Cash and cash equivalents at the end of the period | 112 | 60 | 49 | 53 | 133 | 109 | 60 | 221 | 109 |
KEY PERFORMANCE INDICATORS
| Jan- | Jan | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| sept | sept | Q3 | Q2 | Q1 | Q4 | Q3 | Trailing | Full year | |
| 2023 | 2022 | 2023 | 2023 | 2022 | 2022 | 2022 | 12 mth | 2022 | |
| Net sale growth, % | 11,0 | 25,2 | 3,5 | 8,8 | 21,2 | 26,0 | 29,4 | 14,4 | 25,4 |
| Operating margin, % | 15,8 | 16,0 | 15,5 | 15,7 | 16,2 | 14,3 | 14,9 | 15,4 | 15,5 |
| EBITA-margin, % | 16,4 | 16,6 | 16,1 | 16,2 | 16,7 | 14,9 | 15,6 | 16,0 | 16,1 |
| Return on equity, % | 27,4 | 31,0 | 7,7 | 9,3 | 10,4 | 7,9 | 8,4 | 35,3 | 38,9 |
| Return on capital employed, % | 32,1 | 34,4 | 9,7 | 11,0 | 11,4 | 10,7 | 9,8 | 42,8 | 45,1 |
| Return on total capital % | 22,6 | 24,0 | 7,0 | 7,6 | 8,0 | 7,5 | 7,0 | 30,1 | 31,5 |
| Debt/equity ratio, times | 0,08 | 0,29 | 0,08 | 0,14 | 0,16 | 0,24 | 0,29 | 0,16 | 0,24 |
| Equity/assets ratio, % | 65,6 | 54,3 | 56,7 | ||||||
| Earnings per outstanding share, SEK* | 3,44 | 3,14 | 1,05 | 1,13 | 1,26 | 1,01 | 0,98 | 4,45 | 4,15 |
| Earnings per total shares, SEK* | 3,43 | 3,13 | 1,04 | 1,13 | 1,26 | 1,01 | 0,97 | 4,44 | 4,14 |
| Equity per total shares, SEK | 13,61 | 10,33 | 11,44 | ||||||
| Average number of outstanding shares (thousands) | 138 644 | 138 735 | 138 644 | 138 644 | 138 644 | 138 644 | 138 644 | 138 644 | 138 644 |
| Average total shares (thousands) | 139 016 | 139 016 | 139 016 | 139 016 | 139 016 | 139 016 | 139 016 | 139 016 | 139 016 |
* Attributable to shareholders of the parent company. There are no dilution effects.
CONDENSED INCOME STATEMENT OF THE PARENT COMPANY (SEK MILLION)
| Jan- | Jan | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| sept | sept | Q3 | Q2 | Q1 | Q4 | Q3 | Trailing | Full year | |
| 2023 | 2022 | 2023 | 2023 | 2022 | 2022 | 2022 | 12 mth | 2022 | |
| Net sales | 71 | 64 | 27 | 28 | 17 | 28 | 20 | 99 | 91 |
| Other operating income | - | 0 | - | - | - | - | - | - | - |
| Operating costs | -58 | -53 | -21 | -19 | -18 | -19 | -16 | -76 | -72 |
| Depreciation | -3 | -3 | -1 | -1 | -1 | -1 | -1 | -3 | -4 |
| Operating profit | 11 | 7 | 4 | 8 | -2 | 8 | 3 | 19 | 16 |
| Income from investments | 0 | 0 | 0 | ||||||
| in Group companies | 168 | 132 | 69 | 93 | 7 | 15 | 32 | 184 | 147 |
| Other financial income/expense, Net | 6 | -8 | 4 | 1 | 0 | -2 | -3 | 3 | -10 |
| Profit/loss after financial items | 185 | 131 | 78 | 102 | 5 | 21 | 32 | 206 | 153 |
| Year-end appropriations | 0 | 0 | 0 | 0 | 0 | 367 | 0 | 367 | 367 |
| Pre-tax profit/(loss) | 185 | 131 | 78 | 102 | 5 | 389 | 32 | 573 | 520 |
| Tax | 0 | 0 | 0 | 0 | 0 | -78 | 0 | -78 | -78 |
| Profit/loss for the period | 185 | 131 | 78 | 102 | 5 | 311 | 32 | 495 | 442 |
Comprehensive income for the period corresponds with the profit/loss for the period.
CONDENSED BALANCE SHEET OF THE PARENT COMPANY (SEK MILLION)
| Assets | 2023-09-30 | 2022-09-30 | 2022-12-31 |
|---|---|---|---|
| Intangible fixed assets | 7 | 4 | 5 |
| Property, plant and equipment | 18 | 17 | 17 |
| Financial assets | 642 | 636 | 635 |
| Total fixed assets | 667 | 657 | 657 |
| Current receivables | 543 | 517 | 857 |
| Cash on hand and demand deposits | 3 | 1 | 1 |
| Total current assets | 546 | 518 | 858 |
| Total assets | 1 213 | 1 175 | 1 514 |
| Equity and liabilities | |||
| Equity | |||
| Non-distributable equity | 71 | 74 | 73 |
| Distributable equity | 528 | 236 | 547 |
| Total shareholders' equity | 599 | 309 | 620 |
| Untaxed reserves | 460 | 390 | 460 |
| Deferred tax liabilities | 2 | 2 | 2 |
| Non-current non-interest-bearing liabilities | 33 | 54 | 59 |
| Total non-current liabilities | 33 | 54 | 59 |
| Current interest-bearing liabilities | 0 | 318 | 236 |
| Current non-interest-bearing liabilities | 121 | 102 | 138 |
| Total current liabilities | 121 | 420 | 374 |
| Total equity and liabilities | 1 213 | 1 175 | 1 514 |
Segment reporting is presented on pages 5, 6 and 11. Disclosures about fair value of financial instruments and accounting policies are presented on pages 7 and 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.
Debt/equity ratio Interest-bearing liabilities divided by shareholders' equity
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 34 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.
