OEM International

Quarterly Report • Feb 20, 2023

Financial Statement Full year 2022

Fourth quarter 2022

• Incoming orders rose 2% to SEK 1,186 million (1,159)
• ● Net sales rose 26% to SEK 1,264 million (1,004)
• Operating profit rose 29% to SEK 181 million (141)
• EBITA rose 31% to SEK 188 million (143)
• Profit after tax rose 26% to SEK 140 million (111)
• Earnings per share were SEK 1.01 (0.80)

January - December 2022

• Incoming orders rose 16% to SEK 4,832 million (4,177)
• ● Net sales rose 25% to SEK 4,731 million (3,774)
• Operating profit rose 27% to SEK 735 million (578)
• EBITA rose 29% to SEK 763 million (590)
• Profit after tax rose 26% to SEK 576 million (457)
• Earnings per share were SEK 4.15 (3.30)
• The Board proposes a dividend of SEK 1.50 per share (1.38)

Strong fourth quarter and another year of record performance

The fourth quarter was the Group's best sales quarter ever, with a 26% increase on the previous year's fourth-quarter figure. The impact from acquisitions and exchange rate movements was 6 percentage points and 8 percentage points respectively, resulting in organic growth of 12 percentage points. Incoming orders rose 2% but were 6% lower than sales. Although an improvement in the delivery capacity of suppliers had a positive impact on sales, it resulted in a drop in order book value.

Operating profit (EBITA) rose 31% in the quarter and the EBITA margin expanded to 14.8% (14.3%), impacted positively by higher sales and negatively by a fall in gross margin.

Sales, incoming orders and earnings reached new record highs in the full 2022 financial year. Exchange rate movements had a positive 6 percentage point impact and the acquisition of Demesne in Ireland at the beginning of the year had a 7 percentage point impact. Total growth was 25%, giving organic growth of 12%. Incoming orders rose 16% and were 2% higher than sales. Operating profit (EBITA) rose 29% and the operating margin reached 16.1% (15.6%).

Growth across the regions

The combination of steady demand and improved availability has resulted in good growth figures across most of the operations.

Region Sweden reported total growth of 20% for the quarter, 12% of which was generated organically and 8% was due to the impact of exchange rate movements. Strongest sales growth was delivered by Agolux, OEM Motor, OEM Automatic and Svenska Batteripoolen.

Region Finland, the Baltic states and China reported total growth of 20% for the quarter, 13% of which was organic and 7% was due to the impact of exchange rate movements. The entities with the strongest growth performance are Hide-a-lite and OEM Automatic in Finland followed by the operations in China.

Region Denmark, Norway, the British Isles and East Central Europe reported total growth of 58% in the quarter. The impact from acquisitions and exchange rate movements was 41 percentage points and 7 percentage points respectively, resulting in organic growth of 10 percentage points in the quarter. The operations in Denmark and Slovakia, plus newly acquired Demesne in Ireland, achieved the highest rates of growth.

Market situation

Good demand, increasing prices and a weakened Swedish krona have all helped drive strong growth in sales figures. However, geopolitical tensions and high inflation are adding uncertainty to markets. But as we have said many times in the past, the role of a trading company, regardless of the market situation, is to work closely alongside customers and suppliers, and to adjust and refine strategies as circumstances change to ensure that customers are being served in the best way possible and, at the same time, explore and identify potential new business opportunities. In recent years, we have faced new kinds of challenges and have successfully managed high demand. I am proud to be part of an organisation that offers such impressive levels of expertise and service to the market and consistently delivers stable growth and good profitability.

Jörgen Zahlin

Managing Director and Chief Executive Officer

Net sales SEK million

Share by region in 2022

Incoming orders

Incoming orders amounted to SEK 1,186 million (1,159) in the fourth quarter of 2022, which is an increase of 2%. On a like-for-like basis, including the impact from exchange rate movements, incoming orders fell 4% and acquired incoming orders were up 6%. In the fourth quarter, incoming orders were 6% lower than net sales.

Full-year incoming orders for 2022 amounted to SEK 4,832 million (4,177), which is an increase of 16%.

At SEK 1,088 million (926) on 31 December 2022, the order book was 17% up on the previous year.

The companies have been building up stock levels to keep pace with growing order books. Rising exchange rates and increasing prices have also had an impact on inventory investment. The total value of inventory on 31 December was SEK 1,183 million (785), up 51% on the same date last year.

Sales growth

Net sales in the fourth quarter of 2022 increased by 26% to SEK 1,264 million (1,004). The impact on sales from exchange rate movements and acquisitions was 8% and 6% respectively, resulting in organic growth of 12%. Revenue from acquisitions comes from Region Denmark, Norway, the British Isles and East Central Europe.

Full-year sales for 2022 year rose 25% to SEK 4,731 million (3,774). Exchange rate movements have a positive 6% impact and acquired sales are 7% of the increase, resulting in organic growth of 12%.

The highest percentage net sales growth year over year was reported by the Swedish operations of Svenska Batteripoolen and ATC Tape Converting, and also OEM Automatic in Finland and the operations in Denmark and Ireland.

Region Sweden's share of sales was down 4 percentage points on the previous year, while Region Denmark, Norway, the British Isles and East Central Europe reported an increase of 5 percentage points. Region Finland, the Baltic states and China decreased by 1 percentage point compared with the full-year figure for 2021.

EBITA margin

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.

Growth in earnings

In the fourth quarter of 2022, EBITA, operating profit before amortisation and impairment of acquisition-related intangible fixed assets, rose 31% to SEK 188 million (143). The EBITA margin stood at 14.8% (14.3%) in the fourth quarter.

Full-year EBITA for 2022 grew 29% to SEK 763 million (590). The full-year EBITA margin expanded 0.5 percentage points to 16.1%.

In the fourth quarter of 2022, operating profit rose 29% to SEK 181 million (141). Full-year operating profit for 2022 increased to SEK 735 million (578) to give an operating margin of 15.5% (15.3%).

Full-year profit after tax for 2022 rose 26% to SEK 576 million (457).

Full-year earnings per share for 2022 were SEK 4.15 (3.30).

Return

The return on equity in the fourth quarter of 2022 was 7.9% compared with 7.2% in the year-ago quarter.

Full-year return on equity for 2022 was 39%, which is well above the 20% target.

Shareholders' equity amounted to SEK 1,590 million (1,374) with an equity/assets ratio of 57% (67%) on 31 December 2022.

Sales growth by region for each quarter

Sweden

SEK million

OEM Automatic AB, OEM Motor AB, Telfa AB, Svenska Batteripoolen AB, Elektro Elco AB, Nexa Trading AB, OEM Electronics AB, Internordic Bearings AB, Agolux AB, AB Ernst Hj Rydahl Bromsbandfabrik and ATC Tape Converting AB.

SEK million	2022 Q4	2021 Q4	2022 Full year	2021 Full year
Incoming orders	699	720	2,835	2,559
Net sales	763	635	2,745	2,325
EBITA	136	89	506	398
EBITA margin	18%	14%	18%	17%

In 2022, net sales rose 18% to SEK 2,745 million (2,325). Foreign exchange movements boosted net sales by 7% and organic growth in the region reached 11%. The majority of operations have high rates of growth. The operations that had the best sales performance are Svenska Batteripoolen with 28% growth, ATC Tape Converting with 23% growth, and Agolux with 22% growth. OEM Automatic, the Group's largest company, recorded a 20% year-on-year increase in sales.

In 2022, incoming orders rose 11% to SEK 2,835 million (2,559). Incoming orders were 3% higher than net sales.

In 2022, EBITA rose 27% to SEK 506 million (398), due primarily to growth in sales.

Finland, the Baltic states and China

OEM Automatic FI, Akkupojat Oy, Hide-a-lite FI, OEM Electronics FI, Motor/Bearings FI, Rauheat OY, OEM Automatic OU, OEM Automatic UAB, OEM Automatic SIA and OEM Automatic (Shanghai) Co. Ltd.

SEK million	2022 Q4	2021 Q4	2022 Full year	2021 Full year
Incoming orders	239	252	963	874
Net sales	254	211	969	791
EBITA	27	25	137	118
EBITA margin	11%	12%	14%	15%

In 2022, net sales rose 22% to SEK 969 million (791). Foreign exchange movements had a positive impact on net sales of 5%, which means the organic increase in the region was 17%. The best growth performance in the region was achieved by the Finnish operations OEM Automatic with 23% growth, and OEM Electronics with 21% growth.

In 2022, incoming orders for the region rose 10% to SEK 963 million (874). Incoming orders were on a par with net sales.

EBITA rose 16% to SEK 137 million (118), due primarily to growth in sales.

Denmark, Norway, the British Isles and East Central Europe

OEM Automatic Klitsø A/S, OEM Automatic AS, OEM Automatic Ltd, OEM Automatic Sp z o. o., OEM Electronics PL, OEM Automatic spol. s r.o., OEM Automatic s.r.o. OEM Automatic Kft and Demesne Electrical Sales Ltd.

SEK million	2022 Q4	2021 Q4	2022 Full year	2021 Full year
Incoming orders	248	187	1,034	744
Net sales	247	156	1,017	655
EBITA	27	10	118	56
EBITA margin	11%	6%	12%	9%

In 2022, net sales rose 55% to SEK 1,017 million (655). Sales resulting from the acquisition of Demesne Electrical Sales in Ireland boosted net sales by 38%. Foreign exchange movements also had a positive 5% impact on net sales, resulting in organic growth of 12% in the region. The operations reporting strongest growth compared with the previous year are OEM Automatic Klitsø in Denmark and Demesne Electrical in Ireland, with an increase of 24% and 22% respectively.

In 2022, incoming orders amounted to SEK 1,034 million (744), an increase of 39%, of which 6% comes from the above acquisitions. Incoming orders were 2% higher than net sales.

EBITA rose 111% to SEK 118 million (56). This is mainly due to an increase in net sales on a likefor-like basis, as well as an increase due to acquired sales.

Other financial information

Cash flow

Full-year operating cash flow for 2022 was SEK 264 million (319). Total cash flow was SEK -42 million (-233) and was affected by investing activities amounting to SEK -153 million (-54) and financing activities of SEK -153 million (-498).

Investments

In 2022, the Group's fixed asset investments, excluding acquisitions, totalled SEK 22 million (54), of which SEK 19 million (51) was invested in property, plant and equipment and SEK 3 million (3) in intangible assets.

Cash and cash equivalents

Cash and cash equivalents, comprising cash and bank balances, amounted to SEK 109 million (145) on 31 December 2022. Cash and cash equivalents, together with committed and undrawn credit facilities, amounted to SEK 474 million (549) on 31 December 2022. The Group's interest-bearing financial liabilities totalled SEK 380 million (92), of which SEK 50 million (47) are liabilities recognised as required by IFRS 16 Leases.

Intangible assets

Amortisation of intangible assets totalling SEK 31 million (15) has been charged to the income statement for the full-year 2022. On 31 December 2022, total intangible assets were SEK 344 million (177).

Equity/assets ratio

On 31 December 2022, the equity/assets ratio was 57% (67%).

Employees

The Group's average number of employees in 2022 was 968 (886). The number of employees at the end of the period was 998 (898). The increase is due in part to the acquisition of a business with 48 employees (-).

Share repurchase

OEM did not repurchase any shares during the period. On 31 December 2022, the company held a total of 371,082 treasury shares. This shareholding 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.

Option scheme

OEM's outstanding call option scheme includes a total of 152,500 options. The call options have been transferred at a price of SEK 6.64 per option and the exercise price for the call options is 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.

Acquisitions

On 13 January 2022, the entire shareholding of Demesne Electrical Sales Ltd was 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 48 employees and an annual turnover of approximately SEK 250 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 purchase price for the acquired business was SEK 229 million, including contingent consideration estimated at SEK 77.8 million, based on the performance of the business during 2022 to 2024.

Final acquisition analysis (SEK million)

The acquired company's net assets at the time of acquisition	Group fair value
Intangible fixed assets	104.6
Other fixed assets	3.5
Inventories	22.8
Trade and other receivables	71.3
Cash and cash equivalents	17.0
Deferred tax liability	-13.1
Trade payables and other operating liabilities	-47.2
Net identifiable assets/liabilities	159.1
Consolidated goodwill	70.0
Cash consideration	229.1

Cash consideration comprises cash payment of a fixed purchase price of SEK 139.1 million, a withheld amount on the fixed purchase price of SEK 12.2 million and a contingent consideration of SEK 77.8 million.

As a result of the acquisition, other intangible fixed assets increase by SEK 174.6 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 77.8 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.

Remeasurement of contingent consideration

The evolution of previously completed acquisitions has not led to any revaluation of the contingent consideration payable other than currency revaluation. Remaining purchase consideration (both fixed and contingent) for completed acquisitions as at 31 December 2022 amounted to SEK 91 million (1.4).

Accounting policies

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 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.

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 pages 32 and 33 and pages 78 to 81 of the 2021 Annual Report.

Covid-19 is no longer considered to pose a risk of impact on the OEM Group. Other than the risks and uncertainties presented in the 2021 Annual Report, it has been determined that no material risks or uncertainties have been added or removed.

The high cost of fuel and transport has resulted in a lack of balance in the transport sector and capacity issues among suppliers have stretched out lead times. All this continues to affect business although improvements have been made and the risks have thus lessened.

Customer demand remains at a high level, but rising inflation and interest rates are impacting the markets in which OEM operates, increasing the risk of an economic slowdown.

Related party transactions

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.

Parent Company

Full-year net sales for 2022 for the Parent Company totalled SEK 91 million (83) and profit after financial items was SEK 153 million (106). Net sales relate entirely to inter-company transactions. The foregoing risks and uncertainties specified for the Group also apply indirectly to the Parent Company.

Events after the close of the reporting period

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

The impact of the war in Ukraine on the OEM Group

Russia's invasion of Ukraine continues to affect world trade and is creating uncertainty about economic developments. Since the Group's sales volumes to Ukraine, Belarus and Russia have been negligible, the direct impact of the situation on OEM is low. However, some of OEM's customers have customers of their own in the region in question, which has reduced demand to some degree. However, total OEM turnover is expected to be marginally affected.

The Annual General Meeting and the Nomination Committee

The Nomination Committee for the Annual General Meeting on 18 April 2023 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 70-747 56 61 or via email petter.stillstrom@traction.se

Dividends

The Board proposes a dividend of SEK 1.50 per share (1.38). The proposed dividend amounts to SEK 209 million (191).

Annual Report

The 2022 Annual Report will be available on 17 March 2023 at Head Office and on the company's website, where it can be downloaded as a pdf file. A copy can be ordered from the company by email: ir@oem.se or by calling +46 75-242 40 15.

Financial information

OEM will release financial information as follows:

Annual General Meeting 2023 18 April 2023 Interim report, first quarter 2023 18 April 2023 Interim report, second quarter 2023 13 July 2023 Interim report, third quarter 2023 19 October 2023 Financial statement, Full Year 2023 19 February 2024

Definitions

Definitions can be found on page 16.

Tranås, Sweden, 20 February 2023

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 75-242 40 22, or via email at jorgen.zahlin@oem.se

or the CFO, Johan Broman, on +46 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 20 February 2023 at 14.00 CET by Johan Broman.

The regions' sales and earnings

SALES & EARNINGS BY REGION

Net sales (SEK million)

	Jan- dec 2022	Jan
		dec	Q4	Q3	Q2	Q1	Q4
		2021	2022	2022	2022	2022	2021
Sweden, external income	2 745	2 325	763	646	691	644	635
Sweden, income from other segments	283	172	65	78	87	53	43
Finland, the Baltic States and China, external income	969	791	254	248	250	217	211
Finland, the Baltic States and China, income from other segments 81		13	20	22	37	3	4
Denmark, Norway, the British Isles and
East Central Europe, external income	1 017	655	247	264	249	257	156
Denmark, Norway, the United Kingdom and
East Central Europe, income from other segments	26	4	5	4	16	1	1
Elimination	-390	-187	-90	-104	-139	-57	-47
	4 731	3 774	1 264	1 158	1 191	1 118	1 004

EBITA (MSEK)

	Jan- dec 2022	Jan	Q4	Q3	Q2	Q1	Q4
		dec
		2021	2022	2022	2022	2022	2021
Sweden	506	398	136	112	135	123	89
Finland, the Baltic States and China	137	118	27	39	40	31	25
Denmark, Norway, the British Isles and
East Central Europe	118	56	27	27	30	33	10
Group functions	3	18	-2	3	2	0	19
	763	590	188	180	208	187	143

Operating profit (SEK million)

	Jan-	Jan
	dec	dec	Q4	Q3	Q2	Q1	Q4
	2022	2021	2022	2022	2022	2022	2021
EBITA	763	590	188	180	208	187	143
Amortisation and write-downs of acquisition-related
intangible fixed assets.
Sweden	-3	-4	-1	-1	-1	-1	-1
Finland, the Baltic States and China,	-1	-6	0	0	0	-1	-1
Denmark, Norway, the British Isles and
East Central Europe	-24	-3	-6	-7	-6	-4	-1
Operating profit	735	578	181	172	201	181	141

Consolidated profit/loss (SEK million)

	Jan-	Jan
	dec	dec	Q4	Q3	Q2	Q1	Q4
	2022	2021	2022	2022	2022	2022	2021
Operating profit	735	578	181	172	201	181	141
Net financial items	-11	-2	-4	-3	-2	-2	-1
Pre-tax profit/(loss)	724	576	177	169	199	179	140

Specification of external income by region and product area	Sweden		Finland, the Baltic States and China,		Denmark, Norway, the British Isles and East Central Europé		Total
	Jan-	Jan-	Jan-	Jan-	Jan-	Jan-	Jan-	Jan
	dec	dec	dec	dec	dec	dec	dec	dec
	2022	2021	2022	2021	2022	2021	2022	2021
Product Areas
Automation	975	808	590	464	751	638	2 317	1 909
Components	423	356	107	86	20	17	550	459
Lighting & Installation components	559	496	57	50	247	-	862	545
Other	788	666	215	192	0	-	1 003	858
	2 745	2 325	969	791	1 017	655	4 731	3 774

The Group's performance and financial position

CONDENSED CONSOLIDATED STATEMENT OF INCOME (SEK MILLION)

	Jan-	Jan
	dec	dec	Q4	Q3	Q2	Q1	Q4
	2022	2021	2022	2022	2022	2022	2021
Operating income
Net sales	4 731	3 774	1 264	1 158	1 191	1 118	1 004
Other operating income	2	4	0	0	0	2	0
Operating costs*
Commodities	-3 021	-2 406	-812	-754	-752	-703	-641
Staff costs	-702	-594	-193	-163	-171	-174	-163
Other expenses	-187	-130	-55	-46	-45	-40	-40
Depreciatione/amorisation of property, plant and
equipemnt and intangible fixed assets	-89	-69	-23	-22	-23	-21	-19
Operating profit	735	578	181	172	200	181	141
Net financial income/expense	-11	-2	-4	-4	-2	-2	-1
Pre-tax profit/(loss)	724	576	177	169	199	179	140
Tax	-148	-119	-37	-34	-42	-35	-29
Profit/loss for the period	576	457	140	135	156	144	111
Earnings per outstanding share, SEK**	4,15	3,30	1,01	0,98	1,13	1,04	0,80

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

** The key indicator are corrected for the 3:1 share split and automatic redemption of each third share carried out Q2 2022.

Prior periods have been adjusted with a factor of 2 since that finacial implication of the transaction is a 2:1 split combined with an extra dividend.

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (SEK MILLION)

Other comprehensive income

Profit/loss for the period	576	457	140	135	156	144	111
Items that have been transferred or may
recycled to net income
Exchange differences for the period on
translation of overseas operations	56	12	15	9	24	7	4
Items that can not be recycled to
net profit
Revaluation of defined
benefit pension plans	-1	1	-2	0	0	0	0
Other comprehensive income for the period	55	13	13	10	24	8	4
Comprehensive income for the period	630	470	153	145	181	152	115

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (SEK MILLION)

	2022-12-31	2021-12-31
Fixed assets
Goodwill	229	147
Other intangible assets	115	30
Total intangible assets	344	177
Property, plant and equipment	356	344
Total property, plant and equipment	356	344
Deferred tax assets	7	7
Financial assets	0	0
Total financial assets	8	7
Total fixed assets	707	528

Current assets

Inventories	1183	785
Current receivables	805	596
Cash and cash equivalents	109	145
Total current assets	2 097	1 526
Total assets	2 804	2 054
Equity	1 590	1 374
Non-current interest-bearing liabilities	33	30
Provisions for pensions	2	1
Other provisions	2	2
Non-current non-interest-bearing liabilities	59	-
Deferred tax liabilities	134	105
Total non-current liabilities	229	139
Current interest-bearing liabilities	345	60
Current non-interest-bearing liabilities	640	481
Total current liabilities	985	541
Total equity and liabilities	2 804	2 054

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (SEK MILLION)

	2022-12-31	2021-12-31
At beginning of year	1 374	1 366
Comprehensive income for the period
Profit/loss for the period	576	457
Other comprehensive income for the period	55	13
Comprehensive income for the period	630	470
Dividends paid	-190	-173
Repurchase of shares	-225	-289
At the end of the period	1 590	1 374

CONDENSED CONSOLIDATED CASH FLOW STATEMENT (SEK MILLION)

	Jan-	Jan
	dec	dec	Q4	Q3	Q2	Q1	Q4
	2022	2021	2022	2022	2022	2022	2021
Operating cash flows
before movements in working capital	690	530	-54	172	411	161	138
Movements in working capital	-428	-211	-69	-119	-82	-158	-57
Operating cash flows
	263	319	102	52	104	4	80
Acquisition of subsidiaries
net effet on cash and cash equivalents	-132	-1	0	-24	0	-107	-1
Acquisition of intangible fixed assets	-3	-3	-1	-2	0	0	-2
Acquisition of property, plant and equipment	-19	-51	-8	-4	-2	-5	-6
Sales of property, plant and equipment	1	1	0	0	-1	1	0
Investing cash flows	-153	-54	-9	-30	-2	-111	-9
Financing cash flows
- Loan raised	0	1	0	0	0	0	0
- Loan amortisation	-7	-6	0	0	-3	-4	-2
- Repayment of lease liabilities	-37	-34	-9	-10	-9	-9	-8
- Change in bank overdrafts	306	3	-38	-22	280	87	-40
- Incentive program	1	-	-	-	1	-	-
- Dividends paid	-191	-173	0	0	-191	0	0
- Repurchase of shares	-225	-289	0	0	-225	0	0
Financing cash flow	-152	-498	-47	-32	-147	74	-50
Cash flow for the period	-42	-233	47	-10	-46	-33	21
Cash and cash equivalents at the beginning of the period	145	376	60	69	114	145	122
Exchange rate difference	7	2	2	2	0	3	1
Cash and cash equivalents at the end of the
period	109	145	109	60	69	114	145

KEY PERFORMANCE INDICATORS

	Jan-	Jan
	dec	dec	Q4	Q3	Q2	Q1	Q4
	2022	2021	2022	2022	2022	2022	2021
Return on equity, %	38,9	33,4	7,9	8,4	12,7	9,9	7,2
Return on capital employed, %	45,1	41,1	10,7	9,8	12,6	12,0	9,3
Return on total capital %	31,5	29,2	7,5	7,0	8,7	8,3	6,5
Equity/assets ratio, %	56,7	66,9
Earnings per outstanding share, SEK*	4,15	3,30	1,01	0,98	1,13	1,04	0,80
Earnings per total shares, SEK*	4,14	3,29	1,01	0,97	1,13	1,04	0,80
Equity per total shares, SEK	11,44	9,88
Average number of outstanding shares (thousands)	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
Operating margin, %	15,5	15,3	14,3	14,9	16,8	16,2	14,0
EBITA-margin, %	16,1	15,6	14,9	15,6	17,4	16,7	14,3

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

** The key indicator are corrected for the 3:1 share split and automatic redemption of each third share carried out Q2 2022. Prior periods have been adjusted with a factor of 2 since that finacial implication of the transaction is a 2:1 split combined with an extra dividend.

The Parent Company's performance and financial position

CONDENSED INCOME STATEMENT OF THE PARENT COMPANY (SEK MILLION)

	Jan- dec	Jan
		dec	Q4	Q3	Q2	Q1	Q4
	2022	2021	2022	2022	2022	2021	2021
Net sales	91	83	28	20	24	20	38
Other operating income	0	-	0	0	0	0	0
Operating costs	-72	-62	-19	-16	-20	-17	-16
Depreciation	-4	-4	-1	-1	-1	-1	-1
Operating profit	16	18	8	3	3	2	20
Income from investments			0	0
in Group companies	147	90	15	32	84	16	0
Other financial income/expense, Net	-10	-1	-2	-3	-3	-2	0
Profit/loss after financial items	153	106	21	32	83	16	20
Year-end appropriations	367	299	367	0	0	0	299
Pre-tax profit/(loss)	520	406	389	32	83	16	320
Tax	-78	-66	-78	0	0	0	-67
Profit/loss for the period	442	339	311	32	83	16	253

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

CONDENSED BALANCE SHEET OF THE PARENT COMPANY (SEK MILLION)

Assets	2022-12-31	2021-12-31
Intangible fixed assets	5	3
Property, plant and equipment	17	17
Financial assets	635	412
Total fixed assets	657	432
Current receivables	857	678
Cash on hand and demand deposits	1	15
Total current assets	858	693
Total assets	1 514	1 125
Equity and liabilities
Equity
Non-distributable equity	73	74
Distributable equity	547	519
Total shareholders' equity	620	593
Untaxed reserves	460	390
Deferred tax liabilities	2	2
Non-current non-interest-bearing liabilities	59	-
Total non-current liabilities	59	-
Current interest-bearing liabilities	236	-
Current non-interest-bearing liabilities	138	140
Total current liabilities	374	140
Total equity and liabilities	1 514	1 125

Notes

Segment reporting is presented on pages 5, 6 and 11, and disclosures about fair value of financial instruments and accounting policies are presented on pages 8-9.

Definitions

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 33 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.