OEM International

Quarterly Report • Oct 15, 2024

Interim report

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Q3 2024 - Good growth and strong results

Demand remained relatively healthy during the third quarter, which saw an increase in turnover of 2%. Organic growth was marginal, while acquisitions affected growth positively by just over 3% and currency movements affected negatively by approximately 1.5%, respectively.

Incoming orders were also at a good level, with an increase of 8% on the previous year's quarter. However, incoming orders were 3% lower than turnover. This is normal for the third quarter and reflects the lull during the summer holiday season. Although the order book declined by SEK 37 million, it is bigger than in December 2023.

Operating profit (EBITA) was up 6% as a result of increased turnover and slightly lower costs. The EBITA margin grew to 16.7% (16.1%).

Growth across the regions

Significant variations continue to exist across the markets and industries. The lighting segment in both Sweden and Finland has performed particularly well this quarter.

Sales revenue for Region Sweden increased by 4%, boosted 1% by organic growth and just over 5% by acquisitions. Changes in currency exchange rates had a negative 2% impact on sales. Incoming orders were strong and rose 12%. ATC Tape Converting, Rydahls, Agolux and Elektro Elco experienced robust growth in the quarter.

Region Finland, the Baltic states and China has been contending with sluggish demand since autumn 2023, but the third quarter was on a par with the previous two quarters of the year, despite the summer holiday period. This shows an improvement in performance. Sales were down 6%, due to an organic decline of 4% and negative currency impacts of 2%. Rauheat, OEM Electronics and Hidealite reported good growth in the quarter.

Region Denmark, Norway, the British Isles and East Central Europe achieved a 4% increase in sales, resulting from 3% organic growth and 2% acquisition growth, and impacted by a negative currency effect of just over 1%. The operations in Denmark have delivered a positive performance all year and reported record quarter results for the third quarter.

Market situation

There are significant variations in economic performance across industries in different countries in Europe, where generally Sweden, Ireland and Czech Republic have had good demand. There are now indications that Sweden's industrial sector is losing momentum, while we can see some recovery in the Finnish market. As I mentioned in my report one year ago, growth in a declining economic environment depends greatly on establishing and cultivating strong relationships with existing customers and successfully finding new customers. In addition to this, the group's strong financial position enables the possibility to carry out additional acquisitions when the opportunity arises. In the past, the organization has performed well in times of tougher market situations and has shown a creative approach and an ability to seize the initiative. I am not expecting a sudden turnaround in the economic situation, but I am confident that the market position of our Group will continue to improve.

Jörgen Zahlin Managing Director and Chief Executive Officer Incoming orders

Net sales SEK MILLION

Share by region in 2024

Incoming orders

Incoming orders amounted to SEK 1,185 million

(1,093) in the third quarter of 2024, an increase of 8%. On a like-for-like basis, including the impact of currency movements, incoming orders rose 5% and acquired incoming orders were up 3%. Incoming orders were 3% lower than net sales in the third quarter.

On 30 September 2024, the order book stood at SEK 881 million (925), down 5% on the same date last year.

Sales growth

Net sales increased by 2% to SEK 1,222 million (1,198) in the third quarter of 2024. Organic growth was marginally stronger in the quarter, with a favourable 3% impact from acquisitions and an adverse 1.5% impact from currency movements. Revenue from acquisitions comes from Region Sweden and Region Denmark, Norway, the British Isles and East Central Europe.

The highest percentage net sales growth year over year was reported by OEM Automatic Klitsø in Denmark, Agolux and ATC Tape Converting in Sweden, and Hidealite in Finland.

Region Sweden improved by 3 percentage points and accounts for 58% of Group turnover. Region Finland, the Baltic states and China fell 3 percentage points to 18% of ■ Denmark, Norway, the British Isles - turnover and Region Denmark, Norway, the British Isles and East Central Europe remains unchanged with 24% of Group turnover.

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 third quarter of 2024, EBITA, operating profit before amortisation and impairment of acquisition-related intangible fixed assets, rose 6% to SEK 204 million (192).

The EBITA margin stood at 16.7% (16.1%) in the third quarter.

The EBITA margin for the trailing twelve months was 15.0%.

Operating profit rose 5% to SEK 195 million (185) in the third quarter of 2024, delivering an operating margin of 16.0% (15.5%).

In the third quarter of 2024, profit after tax rose 5% to SEK 152 million (145).

Earnings per share for the third quarter were SEK 1.09 (1.05).

Return

The return on equity in the third quarter of 2024 was 6.7% compared with 7.7% in the year-ago quarter.

The trailing-twelve-month return on equity was 28%, as against the target of 25%.

Shareholders' equity amounted to SEK 2,214 million (1,892) with an equity/assets ratio of 71% (66%) on 30 September 2024.

Sales growth by region for each quarter SEK Million

Sweden

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, ATC Tape Converting AB, Lagermetall AB and Ingemar Liljenberg AB.

SEK million	2024 Q3	2023 Q3	2024 Q1-Q3	2023 Q1-Q5	2023 Full year	I railing 12 month
Incoming orders	659	621	2,237	2,050	2,771	2.958
Net sales	686	657	2,251	2,171	2,958	3,038
EBITA	119	118	370	396	518	492
EBITA margin	17%	18%	16%	18%	18%	16%

Net sales rose 4% to SEK 686 million (657) in the third quarter of 2024. Organic growth had a favourable 1% impact on net sales, which were also boosted 5% by the acquisition of Lagermetall AB and Ingemar Liljenberg AB. Currency effects had a negative impact of 2% on sales in the quarter. The strongest performances in the quarter were delivered by ATC Tape Converting, Agolux and Rydahls, with respective increases of 29%, 21% and 17%. OEM Automatic, the Group's largest company, achieved a 5% increase in sales in the quarter.

In the third quarter of 2024, incoming orders rose 6% to SEK 659 million (621). Incoming orders were 4% lower than net sales.

In the third quarter of 2024, EBITA rose 1% to SEK 119 million (118) due to higher costs and a reduced gross margin.

Finland, the Baltic states and China

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

SEK million	2024 Q3	2023 Q3	2024 Q1-Q3	2023 Q1-Q3	20.23 Full year	Trailing 12 month
Incoming orders	215	215	686	722	941	905
Net sales	237	253	714	780	1,020	954
EBITA	33	37	83	107	131	108
EBITA margin	14%	15%	12%	14%	13%	11%

Net sales fell 6% to SEK 237 million (253) in the third quarter of 2024. The impacts on net sales from organic revenue decline and changes in currency exchange rates were 4% and a negative 2% respectively. The strongest performances were delivered by Hidealite, Rauheat and OEM Electronics, with respective increases of 14%, 13% and 11%.

lncoming orders for the region in the third quarter of 2024 stood at SEK 215 million (215), level with the same period a year ago. Incoming orders were 9% lower than net sales.

In the third quarter of 2024, EBITA was down 13% to SEK 33 million (37) due to lower sales.

Denmark, Norway, the British Isles and East Central Europe

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

	2024	2023	2024	2023	2023	I railing
SEK million	Q3	Q3	Q1-Q3	Q1-Q3	Full year	12 month
Incoming orders	312	257	936	841	1,092	1,187
Net sales	299	288	919	898	1,167	1,188
EBITA	47	36	136	121	153	168
EBITA margin	16%	12%	15%	13%	13%	14%

Net sales rose 4% to SEK 299 million (288) in the third quarter of 2024. Organic growth had a favorable 3% impact on net sales, which were also boosted by the acquisition of Unit-pump with 2%. Currency effects had a negative impact of 1% on sales in the quarter. The operations reporting strongest year-over-year growth are OEM Automatic Klitsø in Denmark and Demesne Electrical Sales, with an increase of 33% and 5% respectively.

Incoming orders in the third quarter of 2024 increased by 21% to SEK 312 million (257). Incoming orders were 4% higher than net sales.

In the third quarter of 2024, EBITA rose 31% to SEK 47 million (36).

Other financial information

Cash flow

Cash flow from operating activities in the third quarter of 2024 amounted to SEK 108 million (127). The total cash flow was SEK 98 million (62). This was impacted by outflows of SEK -9 million (-7) and SEK -1 million (-58), related to investing and financing activities respectively.

Investments

The Group's investments in fixed assets, excluding acquisitions, in the third quarter of 2024 amounted to just over SEK 9 million (8) and are attributable to property, plant and equipment of SEK 9 million (7) and intangible assets of SEK 1 million (1).

Cash and cash equivalents

Cash and cash equivalents, comprising cash and bank balances, amounted to SEK 407 million (112) on 30 September 2024. Cash and cash equivalents, together with committed and undrawn credit facilities, amounted to SEK 971 million (588) on 30 September 2024. The Group's interestbearing financial liabilities totalled SEK 127 million (207), of which SEK 70 million (69) are liabilities recognised in accordance with IFRS 16 Leases.

Intangible assets

Amortisation of intangible assets totalling SEK 10 million (8.0) was charged to the income statement in the third quarter of 2024. On 30 September 2024, intangible assets amounted to SEK 374 million (333).

Equity/assets ratio

On 30 September 2024, the equity/assets ratio was 71% (66%).

Employees

In the third quarter of 2024, the average number of employees in the Group was 1,053 (1,010). At the end of the period, the number of employees was 1,059 (1,019). The increase is due in part to the acquisition of businesses with 35 employees (-).

Share repurchase

OEM did not repurchase any shares during the period. On 30 September 2024, the company owned a total of 371,082 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 13,901,585 shares.

Option scheme

The total number of options in OEM's outstanding call option scheme is 408,000.

A total of 102,000 options have been subscribed for under the share-related incentive scheme, approved at the 2024 Annual General Meeting, which offers some 60 executives the option to purchase up to 200,000 bought-back shares. The call options have been transferred at a price of SEK 13.40 per option and the exercise price for the call options is SEK 135.10, corresponding to 120% of the average share price in the period 6 to 17 May 2024. Each call option entitles the holder to acquire one Class B share during the period 1 March to 15 June 2027.

In 2023, the call options were transferred at a price of SEK 12.77 per option and the exercise price for the call options was SEK 122.00, corresponding to 120% of the average share price in the OEM INTERNATIONAL AB (publ) CRN 556184-6691, Box 1009, 573 28 Tranås, Sweden. Tel. +46 75-242 40 00 7 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.

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.

Remeasurement of contingent consideration

Developments in previously completed acquisitions have resulted in remeasurement of contingent consideration liabilities, which have decreased by SEK 4.8 million. This has been recognised in Other Operating Income and had a positive SEK 4.8 million effect on the operating profit in 2024. In the first six months of 2024, a SEK 30 million (27) payment was made relating to an additional consideration, recognised as a liability, for the acquisition of Demesne Electrical Sales Ltd and SEK 2 million for the acquisition of Lagermetall AB. Remaining considerations (both fixed and contingent) recognised as liabilities related to completed acquisitions as at 30 September 2024 amounted to SEK 50 million (60).

Accounting policies

This condensed consolidated interim report has been prepared in accordance with the requirements of IAS 34, Interim Financial Reporting, and with 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. None of the IFRS or IFRIC interpretations that came into legal effect on 1 January 2024 have had any significant impact on the Group's financial statements or position.

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. A full description of risks to which the Group is exposed can be found on pages 33-35 and 79-82 of the 2023 Annual Report. Other than the risks and uncertainties set out in the 2023 Annual Report, no significant risks or uncertainties have been identified or removed.

Related party transactions

Other than intercompany dividends and dividends to Parent Company shareholders, OEM had no related party transactions during the period that materially affected the financial position or the performance of the Group and the Parent Company.

Parent Company

Net sales for the Parent Company in the third quarter of 2024 amounted to SEK 24 million (27) and profit after financial items was SEK 128 million (78). Net sales relate entirely to intercompany 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 Annual General Meeting and the Nomination Committee

The Nomination Committee for the Annual General Meeting on 24 April 2025 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 petter.stillstrom@traction.se

Next reporting period

The Financial Statement, Full Year 2024, will be published on 19 February 2025.

Definitions

Definitions can be found on page 16.

Tranås, 15 October 2024

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 75-242 40 22, or via email at jorgen.zahlin@oem.se, or the CFO, Rikard Tingvall, on +46 75-242 40 15, or via email at rikard.tingvall@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 15 October 2024 at 14.00 CET by Rikard Tingvall.

Auditor's report

OEM International AB (publ), reg. no. 556184-6691

Introduction

We have reviewed the condensed interim financial information (interim report) of OEM International AB (publ) as of 30 September 2024 and the nine-month period then ended. The board of directors and the CEO are responsible for the preparation and presentation of the interim financial information in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.

Scope of Review

We conducted our review in accordance with the International Standard on Review Engagements ISRE 2410, Review of Interim Report Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing, ISA, and other generally accepted auditing standards in Sweden. The procedures performed in a review do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act, regarding the Group, and with the Swedish Annual Accounts Act, regarding the Parent Company.

Jönköping, 15 October 2024

Öhrlings PricewaterhouseCoopers AB

Frida Wengbrand Authorized Public Accountant

The regions' sales and earnings

sales & Earnings by region

Net sales (SEK million)

	Jan-	Jan-
	sept	sept	Q3	Q2	Q1	Q4	Q3	Trailing	Full year
	2024	2023	2024	2024	2024	2023	2023	12 măn	2023
Sweden, external income	2 251	2 171	୧୫୧	782	783	787	657	3 038	2 958
Sweden, income from other segments	200	203	69	62	69	73	62	273	276
Finland, the Baltic States and China, external income	714	780	237	237	240	239	253	954	1020
Finland, the Baltic States and China, income from other segn	61	୧୮	19	19	23	20	18	81	85
Denmark, Norway, the British Isles and
East Central Europe, external income	919	898	299	312	308	269	288	1188	1 167
Denmark, Norway, the British Isles and
East Central Europe, income from other segments	19	17	8	5	6	5	5	25	24
Elimination	-280	-286	-96	-87	-98	-99	-86	-379	-385
	3884	3 849	1222	1 331	1331	1296	1198	5 180	5 145

ebita (msek)

	Jan-	Jan-
	sept	sept	Q3	Q2	Q1	Q4	Q3	Trailing	Full year
	2024	2023	2024	2024	2024	2023	2023	12 măn	2023
Sweden	370	396	119	121	130	122	118	492	518
Finland, the Baltic States and China	83	107	33	21	30	25	37	108	131
Denmark, Norway,the British Isles and								O
East Central Europe	136	121	47	44	45	32	36	168	153
Group functions	ട	6	6	-1	O				8
	594	630	204	185	205	181	192	775	811

Operating profit (SEK million)

	Jan-	Jan-
	sept	sept	Q3	Q2	Q1	Q4	Q3	Trailing	Full year
	2024	2023	2024	2024	2024	2023	2023	12 măn	2023
EBITA	594	630	204	185	205	181	192	775	811
Amortisation and write-downs of acquisition-related								0
intangible fixed assets.								0
Sweden	-5	-2	-2	-2	-2	-1	-1	-6	-3
Finland, the Baltic States and China,									-
Denmark, Norway, the British Isles and								0
East Central Europe	-23	-20	-8	-8	-7	-7	-7	-29	-27
Operating profit	566	608	195	175	196	173	185	740	782

Consolidated profit/loss (SEK million)

	Jan-	Jan-
	sept	sept	03	Q2	01	Q4	03	Trailing	Full year
	2024	2023	2024	2024	2024	2023	2023	12 man	2023
Operating profit	566	608	195 - 195	175		196	185	740 --------------------------------------------------------------------------------------------------------------------------------------------------------------------------	782
Net financial items	-2	-9	-4	0	2	-3	-4	-5 - - -	-12
Pre-tax profit/(loss)	564	600	389	175	198	170	182 -	735	770

Specification of external income by region and product area	Finland, the Baltic States Sweden and China,		Denmark, Norway, the British Isles and East Central Europe		Total
	Jan-	Jan-	Jan-	Jan-	Jan-	Jan-	Jan-	Jan-
	sept	sept	sept	sept	sept	sept	sept	sept
	2024	2023	2024	2023	2024	2023	2024	2023
Product Areas
Automation	921	835	418	479	649	640	1989	1954
Components	244	335	86	94	12	18	343	446
Lighting & Installation components	404	387	47	50	254	238	705	674
Other	682	615	163	157	3	2	848	774
	2 251	2 171	714	780	919	898	3884	3 849

The Group's performance and financial position

CONDENSED CONSOLIDATED STATEMENT OF INCOME (SEK MILLION)

	Jan-	Jan-
	sept 2024	sept	Q3 2024	Q2 2024	Q1 2024	Q4 2023	Q3 2023	Trailing 12 mån	Full year 2023
		2023
Operating income
Net sales	3884	3 849	1222	1331	1331	1296	1198	5 180	5 145
Other operating income	5	0	5		0	0	0	6	O
Operating costs*
Commodities	-2 500	-2 460	-789	-861	-850	-840	-775	-3 339	-3 300
Staff costs	-582	-559	-169	-210	-203	-195	-167	-777	-754
Other expenses	-162	-154	-45	-59	-57	-62	-48	-224	-216
Depreciatione/amorisation of property, plant and
equipemnt and intangible fixed assets	-80	-68	-28	-26	-26	-25	-23	-105	-93
Operating profit	566	608	195	175	196	173	185	740	782
Net financial income/expense	-2	-9	-4	0	2	-3	-4	-5	-12
Pre-tax profit/(loss)	564	600	191	175	198	170	182	735	770
Tax	-116	-123	-40	-36	-41	-40	-37	-156	-163
Profit/loss for the period	448	477	152	139	157	131	145	578	607
Earnings per outstanding share, SEK**	3,23	3,44	1,09	1,01	1,13	0,94	1,05	4,17	4,38

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

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (SEK MILLION)

Other comprehensive income

Comprehensive income for the period	464	508	336	128	194	100	121	564	608
Other comprehensive income for the period	16	31	28	-12	37	-31	-24	-15	0
benefit pension plans	-1	O	-1	0	O	O	0	-1	0
Revaluation of defined-
net profit
ltems that can not be recycled to
translation of overseas operations	17	31	-8	-12	37	-31	-74	-13	O
Exchange differences for the period on
recycled to net income
Items that have been transferred or may
Profit/loss for the period	448	477	152	139	157	131	145	578	607

Condensed consolidated statement of Financial Position (sek million)

	2024-09-30	2023-09-30	2023-12-31
Fixed assets
Goodwill	258	234	255
Other intangible assets	116	99	140
Total intangible assets	374	333	395
Property, plant and equipment	404	396	408
Total property, plant and equipment	404	396	408
Deferred tax assets	6	7	9
Financial assets	2	0	2
Total financial assets	9	7	11
Total fixed assets	787	737	814
Current assets
Inventories	1064	1137	1085
Current receivables	883	896	800
Cash and cash equivalents	407	112	233
Total current assets	2 354	2 145	2 118
Total assets	3 141	2 882	2 932
Equity	2 214	1892	1991
Non-current interest-bearing liabilities	45	51	51
Provisions for pensions	2	1	2
Other provisions	2	2	2
Non-current non-interest-bearing liabilities	8	33	44
Deferred tax liabilities	159	133	162
Total non-current liabilities	216	220	261

Total equity and liabilities	3 141	2 882	2 932
Total current liabilities	711	770	680
Current non-interest-bearing liabilities	630	614	583
Current interest-bearing liabilities	82	156	96
Total non-current liabilities	216	220	261

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (SEK MILLION)

	2024-09-30	2023-09-30	2023-12-31
At beginning of year	1991	1590	1590
Comprehensive income for the period
Profit/loss for the period	448	477	607
Other comprehensive income for the period	16	31	0
Comprehensive income for the period	464	508	608
Dividends paid	-243	-208	-208
Repurchase of shares			-
Issued call options	1	2	2
At the end of the period	2 214	1897	1991

CONDENSED CONSOLIDATED CASH FLOW STATEMENT (SEK MILLION)

	Jan-	Jan-	Q3		Q1 2024	Q4	Q3	Trailing 12 măn	Full year
	sept 2024	sept		Q2 2024
		2023	2024			2023	2023		2023
Operating cash flows
before movements in working capital	528	570	194	157	177	155	177	684	726
Movements in working capital	-14	-72	-86	46	25	137	-51	124	65
Operating cash flows
	514	498	108	204	203	293	127	807	791
Acquisition of subsidiaries
net effet on cash and cash equivalents	-32	-28	0	-3	-30	-67	0	-99	-95
Acquisition of intangible fixed assets	-4	-4	-1	-3	-1	-5	-1	-9	-9
Acquisition of property, plant and equipment	-18	-33	9	-7	-2	-13	7	-31	-46
Sales of property, plant and equipment	1	0	0	0	0	O	0	1	O
Investing cash flows	-54	-64	-9	-12	-32	-85	-7	-139	-149
Financing cash flows
- Repayment of lease liabilities	-31	-28	-11	-10	-10	-13	-9	-44	-47
- Change in bank overdrafts	-14	-199	11	-5	-20	-70	-48	-84	-269
- Call options	O	2		0				0	2
- Dividends paid	-243	-208		-243				-243	-208
Financing cash flow	-287	-433	-1	-257	-29	-83	-58	-370	-515
Cash flow for the period	173	1	98	-66	141	125	62	299	126
Cash and cash equivalents at the beginning of the period	233	109	311	379	233	49	53	112	109
Exchange rate difference	1	2	3	-2	6	-5	-2	-4	-3
Cash and cash equivalents at the end of the period	407	112	473	311	379	170	112	407	233

KEY PERFORMANCE INDICATORS

	Jan-	Jan-
	sept	sept	Q3	Q2	Q1	Q4	Q3	Trailing	Full year
	2024	2023	2024	2024	2024	2023	2023	12 man	2023
Net sales growth, %	0,9	11,0	2,0	2,7	-1,7	2,5	3,5	1,3	8,7
Operating margin, %	14,6	15,8	16,0	13,2	14,7	13,4	15,5	14,3	15,2
EBITA-margin, %	15,3	16,4	16,7	13,9	15,4	14,0	16,1	15,0	15,8
Return on equity, %	21,3	27,4	6,7	7,1	7,5	6,5	77	27,8	33,9
Return on capital employed, %	26,7	32,1	8,3	8,9	9,5	8,1	9,7	34,8	40,2
Return on total capital %	19,4	22,6	6,2	6,4	6,8	5,9	7,0	25,3	28,5
Debt/equity ratio, times	0,06	0,08							0,07
Equity/assets ratio, %	70,5	65,6							67,9
Earnings per outstanding share, SEK*	3,23	3,44	1,09	1,01	1,13	0,94	1,05	4,17	4,38
Earnings per total shares, SEK*	3,22	3,43	1,09	1,00	1,13	0,93	1,04	4,15	4,36
Equity per total shares, SEK	15,93	13,61							14,32
Average number of outstanding shares (thousands)	138 644	138 644	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

The Parent Company's performance and financial position

CONDENSED INCOME STATEMENT OF THE PARENT COMPANY (SEK MILLION)

	Jan-	Jan-
	sept 2024	sept	Q3 2024	Q2 2024	Q1 2024	Q4 2023	Q3 2023	Trailing 12 măn	Full year 2023
		2023
Net sales	76	71	24	29	23	24	27	100	તેરૂ
Other operating income
Operating costs	-67	-58	-18	-29	-20	-20	-21	-87	-78
Depreciation	-3	-3	-	-7	-	-1	-1	-4	-4
Operating profit	6	11	ട	-1	2	3	4	ி	13
Income from investments								0
in Group companies	149	168	119	8	22	4	ਦਰੇ	152	172
Other financial income/expense, Net	ട	6	4	2	0	3	4	9	ਰੇ
Profit/loss after financial items	160	185	128	9	23	10	78	170	194
Year-end appropriations	O	0	0	0	O	378	O	378	378
Pre-tax profit/(loss)	160	185	128	்	23	388	78	548	573
Tax	0	0	0	0	0	-85	O	-85	-85
Profit/loss for the period	160	185	128	ರಿ	23	303	78	463	487

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

condensed balance sheet of the parent company (sek million)

Assets	2024-09-30	2023-09-30	2023-12-31
Intangible fixed assets	14	7	11
Property, plant and equipment	18	18	18
Financial assets	736	642	741
Total fixed assets	768	667	770
Current receivables	523	543	846
Cash on hand and demand deposits	230	3	85
Total current assets	754	546	931
Total assets	1522	1213	1701
Equity and liabilities
Equity
Non-distributable equity	71	71	71
Distributable equity	749	528	830
Total shareholders' equity	820	ਟਰੇਰੇ	901
Untaxed reserves	542	460	542
Deferred tax liabilities	2	2	2
Non-current non-interest-bearing liabilities	8	33	44
Total non-current liabilities	8	33	44
Current interest-bearing liabilities	-	-	O
Current non-interest-bearing liabilities	150	121	213
Total current liabilities	150	121	213
Total equity and liabilities	1522	1 213	1 701

Notes

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, 8 and 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.

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 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