OEM International

Quarterly Report • Jul 12, 2024

Interim report

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Q2 2024 – Strong order intake but slight drop in turnover

Second-quarter turnover was up 3% and also at the same level as the first quarter, despite four fewer business days. Acquisitions affected growth positively by 4%, the currency had a marginal impact and organic growth was negative by 1%.

As in the prior quarter, incoming orders exceeded turnover and were up 8% on the year-ago second quarter. The order book increased by SEK 9 million and is 18% of the rolling 12 month turnover, which is lower than the highest level in 2021 but above pre-pandemic levels.

Operating profit (EBITA) fell by 12% due to a weaker gross margin and increased costs. The EBITA margin stood at 13.9% (16.2%).

Growth across the regions

There is considerable variation among the operations, where the majority of Swedish businesses had good development and the demand on the Finnish market is still weak.

Sales revenue for Region Sweden increased by 7%, boosted by just over 6 percentage points by acquisitions. Together with a slight adverse impact from currency, this meant that organic revenue growth was up by just over 1 percentage point. Incoming orders were strong and rose 12%. Nexa Trading, Elektro Elco and the Group's largest company OEM Automatic accounted for the strongest growth in the quarter.

Region Finland, the Baltic states and China experienced a decline in demand and sales growth was down 11%, which is primarily organic. The only entity to report growth in the quarter was OEM Automatic China.

Region Denmark, Norway, the British Isles and East Central Europe reported a 3% rise in sales, boosted slightly by currency movements and by just over 1 percentage point by acquisitions, resulting in organic growth just shy of 2%. The operations in Denmark, the Czech Republic and Ireland delivered the highest rates of growth.

Market situation

The higher demand compared to the second half of the previous year together with a strong order intake gives a good start to the year. Weaker gross margins and higher costs underscore the importance of focusing on creating added value for our customers and keeping operations efficient and agile. Our ability to gain market share and find more efficient and effective ways of working over the years is testament to the creativity and innovative spirit of our organisation and will lead to continued positive development.

Jörgen Zahlin Managing Director and Chief Executive Officer

Net sales SEK million

Incoming orders

Incoming orders amounted to SEK 1,322 million

(1,222) in the second quarter of 2024, an increase of 8%. On a like-for-like basis, including the impact of currency movements, incoming orders rose 4% and acquired incoming orders were up 4%. Incoming orders were 1% lower than net sales in the second quarter.

At 30 June 2024, the order book stood at SEK 903 million (1,015), down 11% on the same date last year.

Sales growth

In the second quarter of 2024, net sales increased by 3% to SEK 1,331 million (1,296). Currency movements had a negligible impact in the period, while acquisitions contributed 4%, which resulted in an organic decline of 1%. 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 Nexa Trading, OEM Automatic in China and OEM Automatic Klitsø in Denmark.

Region Sweden improved by 2 percentage points and accounts for 59% of Group turnover. Region Finland, the Baltic states and China fell 2 percentage points to 18% of turnover and Region Denmark, Norway, the British Isles and East Central Europe is unchanged at 23% 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 second quarter of 2024, EBITA, operating profit before amortisation and impairment of acquisition-related intangible fixed assets, fell 12% to SEK 185 million (210).

The EBITA margin stood at 13.9% (16.2%) in the second quarter.

The EBITA margin for the trailing twelve months was 14.8%.

In the second quarter of 2024, operating profit fell 14% to SEK 175 million (203), delivering an operating margin of 13.2% (15.7%).

In the second quarter of 2024, profit after tax was down 11% to SEK 139 million (157).

Earnings per share for the second quarter were SEK 1.01 (1.13).

Return

The return on equity in the second quarter of 2024 was 7.1% compared with 9.3% in the year-ago quarter.

The trailing-twelve-month return on equity was 29%, as against the target of 25%.

At 30 June 2024, shareholders' equity amounted to SEK 2,072 million (1,770) with an equity/assets ratio of 70% (62%).

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.

	2024	2023	2024	2023	2023	Trailing
SEK million	Q2	Q2	Q1-Q2	Q1-QZ	Full year	12 month
Incoming orders	759	680	1,578	1.430	2,111	2,920
Net sales	782	729	1,565	1,514	2,958	3,009
EBITA	121	128	251	278	518	491
EBITA margin	15%	18%	16%	18%	18%	16%

In the second quarter of 2024, net sales increased by 7% to SEK 782 million (729). The acquisition of Lagermetall AB and Ingemar Liljenberg AB boosted net sales by 6%. Net sales were marginally impacted by currency movements, resulting in growth of 1% on an organic basis. The operations reporting strongest growth are Nexa Trading, Elektro Elco and OEM Automatic, whose sales increased by 43%, 13% and 6% respectively.

Incoming orders rose 12% to SEK 759 million (680) in the second quarter of 2024. Incoming orders were 3% lower than net sales.

In the second quarter of 2024, EBITA fell 5% to SEK 121 million (128) due to increased 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 Q2	2023 Q2	2024 Q1-Q2	2023 Q1-Q2	2023 Full year	I railing 12 month
Incoming orders	254	263	471	507	941	905
Net sales	237	265	477	528	1,020	969
EBITA	21	34	50	69	131	113
EBITA margin	9%	13%	11%	13%	13%	12%

In the second quarter of 2024, net sales dropped by 11% to SEK 237 million (265). Net sales were down 1% due to unfavourable currency movements, resulting in an organic decline of 10%. OEM Automatic in China delivered the strongest performance with a 45% increase in sales. All other entities reported negative growth.

In the second quarter of 2024, incoming orders for the region fell 3% to SEK 254 million (263). Incoming orders were 7% higher than net sales.

In the second quarter of 2024, EBITA was down 39% to SEK 21 million (34) 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	Q2	Q2	Q1-Q2	Q1-Q2	Full year	12 month
Incoming orders	309	309	624	584	1,0992	1,132
Net sales	312	312	620	609	1,167	1,178
EBITA	44	44	89	85	153	157
EBITA margin	14%	14%	14%	14%	13%	13%

In the second quarter of 2024, net sales increased by 3% to SEK 312 million (302). At the acquisition date, Unit-Pump A/S in Denmark was merged into OEM Automatic Klitsø A/S. Nets sales were up by 1% as a result of the acquisition and were marginally impacted by currency movements, resulting in growth of 2% on an organic basis. The operations reporting strongest year-over-year growth are OEM Automatic Klitsø in Denmark, OEM Automatic in the Czech Republic and Demesne Electrical Sales, with an increase of 20%, 14% and 12% respectively.

In the second quarter of 2024, incoming orders increased by 11% to SEK 309 million (279). Incoming orders were 1% lower than net sales.

EBITA saw a marginal increase to SEK 44 million (44) in the second quarter of 2024.

Other financial information

Cash flow

Second-quarter operating cash flow for 2024 was SEK 204 million (197). The total cash flow was SEK -66 million (-85). This was impacted by outflows of SEK -12 million (-11) and SEK -257 million (-271), related to investing activities and financing activities respectively, of which SEK -243 million (-208) was dividends paid. Option schemes for 2024 have generated SEK 1.5 million, while bonus payments for the 2022 option scheme had a SEK -1.2 million impact on the cash flow.

Investments

ln the second quarter of 2024, the Group's investments in fixed assets totalled just over SEK 9 million (11) and are attributable to property, plant and equipment of SEK 7 million (9) and intangible assets of SEK 3 million (2).

Cash and cash equivalents

At 30 June 2024, cash and cash equivalents, consisting of cash and bank balances, amounted to SEK 311 million (52). At 30 June 2024, cash and cash equivalents, together with committed and undrawn credit facilities, amounted to SEK 889 million (479). The Group's interest-bearing financial liabilities totalled SEK 109 million (241), of which SEK 66 million (53) are liabilities recognised in accordance with IFRS 16 Leases.

Intangible assets

Amortisation of intangible assets totalling SEK 10 million (7.9) was charged to the income statement in the second quarter of 2024. At 30 June 2024, the value of the intangible assets was SEK 386 million (347).

Equity/assets ratio

At 30 June 2024, the equity/assets ratio was 70% (62%).

Employees

In the second quarter of 2024, the average number of employees in the Group was 1,050 (1,010). At the end of the period, the number of employees was 1,058 (1,023). 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. At 30 June 2024, the company held 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 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 implemented acquisitions have not resulted in a remeasurement of contingent consideration recognised as a liability. 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 acquisitions as at 30 June 2024 amounted to SEK 55 million (61).

Accounting policies

This condensed consolidated interim report has been prepared in accordance with IAS 34, Interim Financial Reporting, and with relevant provisions in the Swedish Annual Accounts Act. The interim report for the Parent Company has been prepared in 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 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 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

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 to Parent Company shareholders.

Parent Company

In the second quarter of 2024, net sales for the Parent Company totalled SEK 29 million (28) and profit after financial items was SEK 9 million (102). 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.

Financial information

OEM will release financial information as follows:

Interim report, third quarter 2024	15 October 2024
Financial statement, Full Year 2024	19 February 2025

Definitions

Definitions can be found on page 15.

Tranås, 12 July 2024

Petter Stillström Chairman of the Board Ulf Barkman Member of the Board Mattias Franzén Member of the Board

Richard Pantzar Member of the Board Jörgen Rosengren Member of the Board Per Svenberg Member of the Board

Åsa Söderström Winberg Member of the Board

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 and the Swedish Securities Market Act. The information was provided for publication on 12 July 2024 at 11.00 CET by Johan Broman.

The regions' sales and earnings

SALES & EARNINGS BY REGION

Net sales (SEK million)

	Jan- june	Jan-
		june	Q2	Q1	Q4	Q3	Q2	Trailing	Full year
	2024	2023	2023	2023	2023	2023	2023	12 măn	2023
Sweden, external income	1565	1514	782	783	787	657	729	3 009	2 958
Sweden, income from other segments	131	141	62	69	73	62	66	266	276
Finland, the Baltic States and China, external income	477	528	237	240	239	253	265	ರಿಕ್ಕಡ	1020
Finland, the Baltic States and China, income from other segments	42	47	19	23	20	18	22	81	85
Denmark, Norway, the British Isles and								0
East Central Europe, external income	620	609	312	308	269	288	302	1178	1167
Denmark, Norway, the British Isles and								0
East Central Europe, income from other segments	11	12	5	6	6	5	6	22	24
Elimination	-184	-200	-87	-98	-99	-86	-94	-369	-385
	2662	2 651	1 331	1 337	1296	1198	1296	5 156	5 145

ebita (Msek)

	Jan-	Jan-
	june	june	Q2	Q1	Q4	Q3	Q2	Trailing	Full year
	2024	2023	2023	2023	2023	2023	2023	12 măn	2023
Sweden	251	278	121	130	122	118	128	491	518
Finland, the Baltic States and China	50	69	21	30	25	37	34	113	131
Denmark, Norway,the British Isles and
East Central Europe	89	85	44	45	32	36	44	157	153
Group functions	-1	4	-1	0	2		4	3	00
	390	437	185	205	181	192	210	763	811

Operating profit (SEK million)

	Jan-	Jan-
	june	june	Q2	Q1	Q4	Q3	Q2	Trailing	Full year
	2024	2023	2023	2023	2023	2023	2023	12 măn	2023
EBITA	390	437	185	205	181	192	210	763	811
Amortisation and write-downs of acquisition-related
intangible fixed assets.
Sweden	-4	-1	-2	-2	-1	-1	-1	-5	-3
Finland, the Baltic States and China,	0	0	0	0	0	0	0	O	0
Denmark, Norway, the British Isles and
East Central Europe	-15	-13	-8	-7	-7	-7	-7	-29	-27
Operating profit	371	423	175	196	173	185	203	730	782

Consolidated profit/loss (SEK million)

	Jan-	Jan-
	june	june	Q2	Q1	Q4	Q3	Q2		Trailing
	2024	2023	2023	2023	2023	2023	2023	12 mån	2023
Operating profit	371	423	175	196	173	185 - 185	203	730 -	782
Net financial items	2	-5	o	2	-3 -3 - -	-4	- - - - - - -	-5	-12
Pre-tax profit/(loss)	373 373	418 418 - 418	175 - - -	198 198 198	170 - -	182 182 182	202 - -	725 725 - 12	770

Specification of external income by region and product area	Sweden		Finland, the Baltic States and China,		Denmark, Norway, the British Isles and East Central Europe			Total
	Jan-	Jan-	Jan-	Jan-	Jan-	Jan-	Jan-	Jan-
	june	june	june	june	june	june	june	june
	2024	2023	2024	2023	2024	2023	2024	2023
Product Areas
Automation	646	584	281	324	436	437	1365	1344
Components	168	233	57	67	9	12	234	311
Lighting & Installation components	274	262	30	35	173	160	476	456
Other	477	435	108	103	3		588	539
	1565	1514	477	528	620	609	2662	2 651

The Group's performance and financial position

condensed consolidated statement of income (sek million)

	Jan-	Jan-
	june	june	Q2	Q1	Q4	Q3	Q2	Trailing	Full year
	2024	2023	2023	2023	2023	2023	2023	12 mån	2023
Operating income
Net sales	2662	2 651	1331	1331	1296	1198	1296	5 156	5 145
Other operating income		0		0	0	0	0		0
Operating costs*
Commodities	-1 710	-1685	-861	-850	-840	-775	-827	-3 325	-3 300
Staff costs	-413	-392	-210	-203	-195	-167	-189	-776	-754
Other expenses	-116	-106	-59	-57	-62	-48	-55	-227	-216
Depreciatione/amorisation of property, plant and
equipemnt and intangible fixed assets	-52	-45	-26	-26	-25	-23	-23	-100	-93
Operating profit	371	423	175	196	173	185	203	730	782
Net financial income/expense	2	-5	0	2	-3	-4	-1	-5	-12
Pre-tax profit/(loss)	373	418	175	198	170	182	202	725	770
Tax	-77	-86	-36	-47	-40	-37	-45	-153	-163
Profit/loss for the period	296	332	139	157	131	145	157	572	607
			0
Earnings per outstanding share, SEK**	2,14	2,39	1,01	1,13	0,94	1,05	1,13	4,13	4,38

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

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (SEK MILLION)

0 55	0 -12	0 37	0 -31	0 -24	0 44	0 -29	0 0
55	-12	37	-31	-24	44	-30	0
332	139	157	137	145	157	572	607

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (SEK MILLION)

	2024-06-30	2023-06-30	2023-12-31
Fixed assets
Goodwill	259	238	255
Other intangible assets	127	109	140
Total intangible assets	386	347	395
Property, plant and equipment	402	384	408
Total property, plant and equipment	402	384	408
Deferred tax assets	8	6	9
Financial assets	2	0	2
Total financial assets	10	7	11
Total fixed assets	798	737	814
Current assets
Inventories	999	1158	1085
Current receivables	872	900	800
Cash and cash equivalents	311	52	233
Total current assets	2 182	2 110	2 118
Total assets	2 980	2 848	2 932
Equity	2 072	1770	1991
Non-current interest-bearing liabilities	43	37	51
Provisions for pensions	2	1	2
Other provisions	2	2	2
Non-current non-interest-bearing liabilities	7	ਤੇ ਤੇ	44
Deferred tax liabilities	161	134	162
Total non-current liabilities	215	207	261
Current interest-bearing liabilities	65	204	વેરિ
Current non-interest-bearing liabilities	628	667	583
Total current liabilities	693	871	680
Total equity and liabilities	2 980	2 848	2 932

Condensed consolidated statement of changes in equity (sek million)

	2024-06-30	2023-06-30	2023-12-31
At beginning of year	1991	1590	1590
Comprehensive income for the period
Profit/loss for the period	296	332	607
Other comprehensive income for the period	25	55	O
Comprehensive income for the period	322	387	608
Dividends paid Repurchase of shares	-243	-208	-208 -
Issued call options	1	2	2
At the end of the period	2072	1770	1991

CONDENSED CONSOLIDATED CASH FLOW STATEMENT (SEK MILLION)

	Jan-	Jan-
	june	june	Q2 2023	Q1	Q4	Q3	Q2	Trailing 12 măn	Full year 2023
	2024	2023		2023	2023	2023	2023
Operating cash flows
before movements in working capital	334	393	157	177	155	177	192	667	726
Movements in working capital	72	-22	46	25	137	-51	5	159	રક
Operating cash flows
	406	371	204	203	293	127	197	826	791
Acquisition of subsidiaries
net effet on cash and cash equivalents	-32	-28	-3	-30	-67	0	0	- да	-05
Acquisition of intangible fixed assets	-4	-3	-3	-1	-5	-1	-2	-9	-9
Acquisition of property, plant and equipment	-9	-26	-7	-2	-13	-7	-9	-29	-46
Sales of property, plant and equipment	0	0	0	0	0	0	0	1	0
Investing cash flows	-45	-57	-12	-32	-85	-7	-11	-137	-149
Financing cash flows
- Loan raised
- Loan amortisation
- Repayment of lease liabilities	-20	-18	-10	-10	-13	-9	-9	-42	-41
- Change in bank overdrafts	-25	-151	-5	-20	-70	-48	-56	-143	-269
- Call options	0	2	0				2		2
- Dividends paid	-243	-208	-243				-208	-243	-208
- Repurchase of shares
Financing cash flow	-287	-375	-257	-29	-83	-58	-271	-427	-515
Cash flow for the period	75	-61	-66	141	125	62	-85	262	126
Cash and cash equivalents at the beginning of the period	233	109	379	233	49	53	133	52	109
Exchange rate difference	4	4	-2	ട	-5	-2	4	-3	-3
Cash and cash equivalents at the end of the period	311	52	311	379	44	49	52	311	233

KEY PERFORMANCE INDICATORS

	Jan-	Jan-
	june	june	Q2	Q1	Q4	Q3	Q2	Trailing	Full year
	2024	2023	2023	2023	2023	2023	2023	12 măn	2023
Net sales growth, %	0,4	14,8	2,7	-1.7	2,5	3,5	8,8	1,6	8,7
Operating margin, %	13,9	16,0	13,2	14,7	13,4	15,5	15,7	14,3	15,2
EBITA-margin, %	14,6	16,5	13,9	15,4	14,0	16.	16,2	14,9	15,8
Return on equity, %	14,6	19,7	7,1	7,5	6,5	7,7	9,3	28,8	33,9
Return on capital employed, %	18,4	22,4	8,9	9,5	8,1	9,7	11,0	36,2	40,2
Return on total capital %	13,2	15,6	6,4	6,8	5,9	7,0	7,6	26,1	28,5
Debt/equity ratio, times	0,05	0,14	-0,01	0,06	0,07	0,08	0,14	0,20	0,07
Equity/assets ratio, %	69,5	62,2							67,9
Earnings per outstanding share, SEK*	2,14	2,39	1.01	1,13	0,94	1,05	1.13	4,13	4,38
Earnings per total shares, SEK*	2,13	2,39	1,00	1.13	0,93	1,04	1,13	4,10	4,36
Equity per total shares, SEK	14,90	12,73							14,32
Average number of outstanding shares (thousands)	138 644	138 644	138 644	138 644	138 644	138644	138644	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.

The Parent Company's performance and financial position

condensed income statement of the parent company (sek million)

	Jan-	Jan-
	june	june	Q2	Q1	Q4	Q3	Q2	Trailing	Full year
	2024	2023	2023	2023	2023	2023	2023	12 mån	2023
Net sales	52	44	29	23	24	27	28	102	95
Other operating income
Operating costs	-49	-37	-29	-20	-20	-21	-19	-90	-78
Depreciation	-2	-2	-1	-1	-1	-1	-1	-4	-4
Operating profit	1	6	-1	2	3	4	8	8	13
Income from investments								0
in Group companies	30	ਰੇਰੇ	8	22	4	ಲ್ಲೂ	ੇਤੇ	102	172
Other financial income/expense, Net	2		2	0	3	4		9	9
Profit/loss after financial items	32	107	்	23	10	78	102	119	194
Year-end appropriations	0	0	0	0	378	0	0	378	378
Pre-tax profit/(loss)	32	107	்	23	388	78	102	498	573
Tax	0	0	0	0	-85	0	0	-85	-85
Profit/loss for the period	32	107	ರಿ	23	303	78	102	412	487

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

Condensed Balance Sheet of The Parent Company (SEK Million)

Assets	2024-06-30	2023-06-30	2023-12-31
Intangible fixed assets	14	7	11
Property, plant and equipment	17	17	18
Financial assets	741	642	741
Total fixed assets	772	666	770
Current receivables	520	582	846
Cash on hand and demand deposits	110	3	85
Total current assets	631	585	931
Total assets	1403	1 251	1701
Equity and liabilities
Equity
Non-distributable equity	71	71	71
Distributable equity	621	450	830
Total shareholders' equity	692	521	901
Untaxed reserves	542	460	542
Deferred tax liabilities	2	2	2
Non-current non-interest-bearing liabilities	7	33	44
Total non-current liabilities	7	33	44
Current interest-bearing liabilities	0	119	0
Current non-interest-bearing liabilities	160	117	213
Total current liabilities	160	236	213
Total equity and liabilities	1403	1 251	1 701

Notes

Segment reporting is presented on pages 5, 6 and 10. 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 10.

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 efficiency and choose the right components.