2011_en_fv by OEM International

HISTORY

74 75 76 77 78 79 80 81

1982 Set up in Norway

82 83 84 85

1986 First acquisition Industri AB Reflex

1983 Launch into Stockholm Stock Exchange Set up in Denmark Sales total approximately SEK 30 million

87 89

1988 Sales exceed SEK 100 million for the first time

90 91 92

1993 A. Karlsongruppen is acquired

1981 The first overseas subsidiary is set up in Finland

86 88

1989 The first subsidiary outside Scandinavia is set up in the UK

1974 OEM Automatic AB is set up by the Franzén and Svenberg families

1991 OEM International is formed and becomes the parent company

93 94 95

1996 Sales exceed SEK 500 million for the first time

1998 Subsidiary set up in Poland 1999 Four acquisitions completed

2001 Telecom crisis and general economic slowdown were manifest in the second half of the year

CONTENTS 1997 OEM and Cyncrona merge Acquisition of Egevo and Internordic Bearings

Chief Executive’s Review

Vision, business concept, goals & strategy

Value-adding link

OEM is driving growth

OEM leading products

OEM International market

Sweden

Finland, Baltic States

2005 Acquisition of Telfa and sale of hydraulics operations

Denmark, Norway, the United Kingdom Central Eastern Europe

Skilled employees

2007 Acquisition of Crouzet, MPX Electra and Klitsö

Quality, the environment & ethics

Senior Executives

2009 Set up in China

The Board & shares

Key Performance Indicators

Addresses

99 00 02 03

06 08 10

2011 Acquisition of Svenska Batteripoolen, Echobeach, Scapro, Helag and Flexitron Set up in Hungary

11 12

2000 Jörgen Zahlin is appointed as Managing Director Acquisition of Ernström Hydraulik and Indoma 2002 Sales declined by 30%

2006 Presence established in the Czech Republic through acquisition of EIG 2008 Acquisition of Elektro Elco and the business in OK Kaapelit Set up in Slovakia 2010 New logistics centre and new e-commerce platform Acquisition of All Motion and sale of Cyncrona

OEM INTERNATIONAL OEM IS ONE OF EUROPE'S LEADING TECHNOLOGY TRADING GROUPS IN

INDUSTRIAL COMPONENTS AND SYSTEMS IN SELECTED MARKETS IN NORTHERN, CENTRAL AND EASTERN EUROPE AND WITH AN EXPANDING PRESENCE IN CHINA.

OEM is a link that creates value between customers and suppliers of industrial components and systems. The company brings high-tech expertise and an extensive range of products to more than 20 000 customers. Its range comprises more than 25 000 products from around 300 suppliers which are specialists and leaders in the fields of electrical components, flow technology, motors and transmissions, ball bearings and seals, appliance components and lighting. OEM markets and sells the products with a high degree of knowledge and service to its customers coupled with efficient logistics support.

OVERVIEW NET SALES

2011 (SEK million)

1 590

2010 1 430

(SEK million) 172

137

PROFIT FOR THE YEAR

(SEK million) 126

100

EARNINGS PER SHARE

(SEK) 5,42

4,32

PROFIT BEFORE TAX

EQUITY PER SHARE

(SEK)

27,95

AVERAGE NUMBER OF EMPLOYEES

570

504

(%) 63,3

63,7

(SEK) 55,00

54,50

(SEK) 3,50

3,00

EQUITY/ASSETS RATIO

SHARE PRICE AT YEAR-END PROPOSED DIVIDEND

25,63

The Group is divided into three market regions. Sweden is the largest. Finland and the Baltic States are the oldest outside of Sweden. Denmark, Norway, the United Kingdom and Central Eastern Europe have the greatest growth potential. The Group is made up of a total of 24 operating units in 14 countries. In 2011, OEM completed five acquisitions and established operations in Hungary. In addition, it strengthened its position in most of its markets. OEM has moved into 2012 with a wider range, extended geographic presence, more efficient logistics system and stronger organisation. OEM’s sales increased by 11% to SEK 1 590 million for the whole of 2011. As a result of improved efficiency and growth, profit before tax rose 26% to SEK 126 million.

3 OEM 2011

STRONG GROWTH RECORD YEAR Our sales in 2011 were up 11 % to SEK 1 590 million. As a result of our growth and improved efficiency, profit before tax rose 26 % to SEK 172 million. Excluding the impact of foreign currency, the sales growth rate was no less than 16 %. The majority of the companies reported record sales and earnings. EXPANDED PORTFOLIO Key to our success is our position as a link between customers and suppliers of industrial components and systems. A link that creates value across business relationships. Our main competitive resource is our knowledge, which enables us to help all our customers choose the right component from the right suppliers from our extensive range. We help sharpen our customers’ competitive edge by working to improve their products. We also drive the sales of our suppliers, often with the aim of helping them become leaders in their markets. In 2011, we further developed our partnerships with Scania, BT-Toyota, Sandvik, Atlas Copco, Tetra Laval and others. We have more than 20 000 customers in different sectors across a range of markets. This offers us insights into numerous industries, great breadth and lower risk. In many cases, we work closely alongside our customers in several markets. When Getinge and ABB established in China, we went along too. We were also busy developing our range this past year, by expanding our partnerships with existing suppliers, welcoming new ones and taking partnerships into new markets. GEOGRAPHICAL EXPANSION Asco Controls, one of our most important suppliers, invited us to partner with them in the Hungarian market. We consequently set up OEM Automatic in Hungary, with head offices in Budapest. We have taken over about 400 customers and have extended the range with many of our existing suppliers.

4 OEM 2011

We have also strengthened our organisation in Shanghai this year, with product specialists and sales staff. We considered this essential as many of our key customers have transferred their production to China. This enables us to continue providing high-quality service and create new business opportunities. FIVE ACQUISITIONS COMPLETED We have many years of experience of acquiring businesses to expand the product scope and reach into new markets. In 2011, we acquired Svenska Batteripoolen i Borlänge AB, Svenska Helag AB, Echobeach Ltd, Flexitron AB and the operations of Scapro AB. Their total annual turnover is in excess of SEK 100 million. Our acquisition strategy is to acquire businesses where we can be good owners and help drive their continued expansion. Our target is, each year, to acquire companies with a total annual turnover of at least SEK 100 million. ON-GOING DEVELOPMENT OF LOGISTICS As part of our logistics development process, we decided to extend and develop our logistics centre for Finland and the Baltic States in Turku last year. Our investment process in Tranås was a positive experience leading to an improved level of service and efficiency. Our strategy is to continue developing this method of working in specific areas of the Group. E-COMMERCE PLATFORM We have gathered all information about 25 000 products into our new e-commerce platform and put it into operation in ten companies in nine countries. This facilitates the process of launching products in new markets, updating the product range and driving cross sales. It is easier for customers to compare and purchase products, especially when it comes to frequent purchases and standard products.

“IN 2011 WE INCREASED SALES TURNOVER BY 11% AND PROFIT BEFORE TAX BY 26%. EVEN MORE IMPORTANTLY, WE IMPROVED OUR PORTFOLIO AND EXTENDED OUR REACH.”

STRONG BALANCE SHEET ENSURES CONTINUED PROGRESS Our strong performance in 2011 has improved our already strong balance sheet. Despite a 70 % dividend payout and a SEK 3.3 million repurchase of shares, the equity/assets ratio is 63 %. PLENTY STILL TO DO We can look back on 2010 and 2011 as successful years. All key performance indicators have developed in the right way and we have strengthened our positions in most of the markets. We are also continuing to see huge development potential in all markets where we have a presence and many new markets remain unexplored. The strong commitment displayed by our organisation has created a successful culture that makes it interesting and exciting to push ahead with our task of developing OEM. Much has already been accomplished, but there is plenty still to do.

Jörgen Zahlin Managing Director and CEO of OEM International

5 OEM 2011

VISION BUSINESS CONCEPT GOALS & STRATEGY

6 OEM 2011

VISION OEM shall be a leading technology trading Group in industrial components and systems in selected markets in Northern, Central and Eastern Europe.

from leading suppliers. The range of products grows through partnerships with existing and new suppliers. Each product area is tailored to the local markets. Development of the range is central for OEM and it is the task of each local marketing organisation to find new products to improve further the competitive advantage of our portfolio of offerings.

better than, that of the largest players in each respective market. STRATEGIES

GROWTH 1. Organic growth Organic growth takes place through increased market share and expansion of the product range. In areas where OEM is firmly established, its operations are expected to grow by 5 % above the underlying market growth. In markets where OEM has yet to achieve a position among the five largest players, our ambition is to achieve considerably higher growth.

BUSINESS CONCEPT OEM offers an extensive and detailed range of industrial components and systems from leading suppliers. A well-structured local market organisation and efficient logistics make OEM a better alternative than the suppliers’ own sales organisations. OEM provides a high level of expertise and service and markets the products according to the specific conditions of each respective market.

MARKETING ACTIVITIES Marketing is conducted primarily through face-to-face sales. Personal meetings are crucial to understanding customer applications and needs, and a practical way for OEM to offer its unique expertise. Face-to-face sales are supported by web-based and printed marketing communication materials.

2. Geographic expansion Geographic expansion will occur in markets where it is possible to become a prominent player by representing several of OEM’s suppliers. Geographic expansion will take place in Central Eastern Europe.

GOALS OEM’s goal is to sustain stable growth and have a good return on equity with minimal financial risk.

FINANCIAL TARGETS OVER ONE ECONOMIC CYCLE

LOGISTICS OEM is in the process of developing a world-class logistics platform by investing in Group-wide logistics solutions.

3. Acquisitions Acquisitions include companies and product ranges that strengthen OEM’s market position within current product areas in existing markets, as well as companies that introduce a brandnew product area or new geographic market.

• 15 % annual sales and earnings growth. • 20 % return on equity. • Equity/assets ratio must not fall below 35 %.

BUSINESS TARGETS OEM will be one of the largest technology trading companies in its chosen geographical markets. Profitability will be on par with, or

EMPLOYEES AND MANAGEMENT Employees shall be given the opportunity to develop within the company taking consideration to business goals and strategies as well as the employees' ambitions. Recruitment and employee strategies will lead to a significant number of managers being recruited internally.

PRODUCT RANGE OEM sells a product range consisting of industrial components and systems

PROFITABLE GROWTH WITH STRONG FINANCES 1600

175

1480

150

1360

125

1240

100

1120

Goal

1000

Turnover growth

(SEK M)

Profit growth

(EBIT, SEK M)

Goal

Return on equityl

(%)

Equity/asset ratio

(%)

7 OEM 2011

VALUE-ADDING LINK FOUR CENTRAL PROCESSES

OEM creates value by offering its customers technical expertise and an extensive range of industrial components and systems. As a technology trading group, the company brings together an understanding of the customers' situation and knowledge of the suppliers' products. OEM has around 20 000 customers in Northern and Central Europe and China. They look to OEM as a strategic supplier of components.

8 OEM 2011

They often coordinate an increasingly larger part of their purchases via OEM. OEM offers a broad and detailed range, along with a high level of expertise, supplementary products and efficient logistics and service. OEM often has strong, long-term partnerships with its customers. Its aim is to improve its customer's product through the right choice of component. OEM drives the sales of about 25 000 products for more than 300 specialised suppliers. You could

say that OEM is an alternative to the suppliers’ own local sales companies. OEM has the responsibility for marketing and sales in selected markets and accesses customer groups that the suppliers themselves have difficulty coming into contact with. OEM is a long-term, loyal partner to its suppliers and does not join with competing manufacturers. Its aim is often to help the supplier evolve into a leader in its market.

FOUR CENTRAL PROCESSES 1. OEM offers a unique and extensive range of products from leading manufacturers

2. OEM has an efficient logistics process with a high service level

2. LOGISTICS 1. PRODUCT RANGE DEVELOPMENT

SUPPLIERS

• Receive assistance with marketing on local markets. • Have their products marketed together with supplementary products. • Reach markets and customers that they would have difficulty reaching successfully on their own. • Receive assistance with tailoring products to customer-specific designs. • Receive assistance with creating logistic solutions that satisfy customer requirements.

3. OEM creates modern marketing communication that supports its sales

4. OEM runs an efficient sales process based on personal sales and profound product knowledge

3. MARKET COMMUNICATION 4. SALES PROCESS

CUSTOMERS

• Gain access to competence concerning the product and its use. • Gain access to a wide range of components from more than 300 suppliers. • Can reduce the number of subcontractors thanks to OEM delivering more components. • Obtain overall solutions with supplementary components. • Receive deliveries in the right place at the right time. • Ensure high product quality.

• Receive feedback on customer requirements for use in developing future components.

9 OEM 2011

OEM IS DRIVING GROWTH… GROWTH IS PART OF OEM’s CORPORATE CULTURE. OEM HAS AN ANNUAL GROWTH TARGET OF 15 % WHICH IT EXPECTS TO ACHIEVE THROUGH A BALANCED MIX OF ORGANIC GROWTH AND ACQUISITIONS. OEM REPORTED 16 % GROWTH FOR 2011 EXCLUDING THE IMPACT OF FOREIGN CURRENCY.

ORGANIC GROWTH AND GEOGRAPHIC EXPANSION OEM achieves organic growth by increasing its market share and extending its range. OEM also expands geographically into markets where there is the potential for the company to become a significant player. HIGHER MARKET SHARE

OEM builds long-term partnerships with its customers. Good relationships are the foundation of sales success and our company carried out no less than 30 000 visits to customers in 2011. At the same time, we launched our new online catalogue in nine countries. This complements our printed catalogues and provides additional support to the sales process. OEM currently has 20000 active customers. Sales among major customers are increasing noticeably in the Nordic markets where market share is relatively high. The increase in sales in the United Kingdom and Central Eastern Europe, where the market share is lower, is attributable to the continuous expansion of the customer base. The company considers that it improved its position in several markets in 2011. EXTENDED RANGE

OEM is constantly evolving its portfolio of products by developing its partnerships with existing suppliers. It does so by geographically extending its collaborative activities in more markets and also by launching new products. On-going development of our existing supplier relationships is a strategically important part of OEM’s business concept. One example of how it has geographically ex panded its supplier relationships is THK, the Japanese manufacturer of linear motion products, with an annual turnover in Sweden of approxi-

10 OEM 2011

mately SEK 20 million, which have been on sale in Finland, Norway and Denmark since 2011. It is the responsibility of every local company to locate new suppliers based on the needs of each market. One successful illustration of this is the launch of Ettore Cella in Norway. Ettore Cella supplies manometers to the offshore industry. OEM SETS UP IN HUNGARY

Asco Controls, one of OEM’s most important suppliers, invited us to partner with them in the Hungarian market. We subsequently set up OEM Automatic in Hungary in October 2011, with head offices in Budapest. The company has taken over about 400 customers and extended the range with a number of existing suppliers. The aim is to have established a significant presence in the Hungarian market within a few years.

GROWTH THROUGH ACQUISITIONS OEM acquires businesses that strengthen the company’s market position and extend its range and scope. OEM integrates these acquisitions wherever there are benefits to be gained from coordinating the entities. Otherwise, the acquired business is operated as before as a separate entity and OEM assumes ownership responsibilities.

ACQUISITION OF SCAPRO'S OPERATIONS

ACQUISITION OF ECHOBEACH

ACQUISITION OF SVENSKA BATTERIPOOLEN

OEM extends its range by taking its responsibility for selling its suppliers’ products in even more markets. Echobeach, agent for Conta-Clip in the UK, with an annual turnover of around SEK 12 million, was acquired in March 2011. OEM has long been marketing and selling Conta-Clip products in other markets and has comprehensive knowledge of the range. OEM is strengthening its portfolio of offerings in the United Kingdom with this acquisition.

OEM’s aim is to become one of the foremost companies in the battery business in Scandinavia. It extended its range in September 2011 with the acquisition of Svenska Batteripoolen AB which has an annual turnover of approximately SEK 17 million.

OEM took over the responsibility for sales of ContaClip's electrical components to more than 150 customers, 100 of whom were new for OEM. The strategy is to continue developing relationships with these customers to include other products too. The stocks of goods were moved to OEM’s premises and the business had been fully integrated with OEM Automatic in Leicester by April. ACQUISITION OF SVENSKA HELAG

In the spring of 2011, OEM acquired Svenska Helag AB which produces and markets connection technology components for electrical systems. The company’s annual turnover is approximately SEK 21 million. The strategy is to develop Svenska Helag’s strong brand name and the Swedish sales organisation, as well as to extend marketing activities to countries outside of Sweden through OEM’s companies.

Scapro AB’s electronic components sales business was acquired in April 2011 to take over a number of agents, including those for keyboards and capacitors. The business is now fully integrated into OEM Electronics and reports annual sales of approximately SEK 30 million.

Svenska Batteripoolen holds a strong position in starter batteries for the aftermarket with sales to workshops, depots and local dealers. This complements OEM’s range of industrial batteries which are primarily sold to uninterruptible power supply (UPS) systems and manufacturers of machinery and appliances. Svenska Batteripoolen and OEM Automatic benefit from each other’s knowledge, customer bases, purchasing volumes and cost synergies. ACQUISITION OF FLEXITRON

In November 2011, OEM acquired Flexitron AB in Täby. The company markets electronic and automation components. It reports annual sales of approximately SEK 26 million. Flexitron creates a solid platform in a number of areas, including transformers and coils, thus providing a strong complement to OEM’s existing range. The aim is to continue developing the operations in several ways, including coordination with OEM Electronics.

11 OEM 2011

OEM LEADING PRODUCTS ELECTRICAL COMPONENTS

12 OEM 2011

FLOW COMPONENTS

MOTION AND DRIVES

Multi-function button

Pressure gauge

Servo Motor

Lighting tower

Flow indicator

AC-motor

EXAMPLES OF PRODUCTS

Sensors Cable Safety components Battery

Valves Tubes Sensors Pumps

Drive Electronics Motors with gears Belt transmissions Linear products

AREAS OF APPLICATION

Machine constructors and fitters

Machine constructors

Customers

BT-Toyota Atlas Copco Sandvik

Bosch Thermoteknik Volvo Getinge

Tetra Pak Getinge GE Health Care

MARKETS

Sold in all markets

Sold in Sweden, Finland, Norway, Denmark, the UK and Poland

BEARINGS AND SEALS

APPLIANCE COMPONENTS

Lighting

Bushing

Fan

Downlight

Needle bearing

Keypad

Downlight

EXAMPLES OF PRODUCTS

Standard rolling, spherical plain and slide bearings Sealing Circlip

Displays Keyboards LED lighting

Hide-a-lite lighting using LED technology

AREAS OF APPLICATION

Machine constructors and automotive

Electronics and appliance manufacturers

Indoor and outdoor lighting

Customers

Kongsberg Husqvarna BT Products

Husqvarna Partnertech Amica

Elektroskandia Ahlsell Bauhaus

MARKETS

Sold in Sweden and Finland

Sold in Sweden, Finland, Denmark, Poland and the Baltic States

Sold in Sweden, Finland and Norway

13 OEM 2011

OEM INTERNATIONAL MARKET

Sweden is OEM’s oldest and largest region. In 2011, sales increased by 15 %. OEM’s entire range of products is marketed here. To continue driving growth, the company is working to introduce completely new product areas, for example, through acquisitions. Finland and the baltic states is OEM’s oldest region outside of sweden. In 2011, sales increased by 13 % in local currency. A large part of the group's products are marketed here. Expansion is taking place both through the roll-out of products that have proved successful in sweden and through the introduction of completely new products. Denmark, Norway, the United Kingdom and Central Eastern Europe are OEM’s second largest region. In 2011, sales increased by 12 % in local currency. The group’s products are launched here successively based on market need and business capacity. OEM is opening new operations in the region, the latest launch being in Hungary. OEM sells products to a great number of customers across a wide range of market segments in several geographic markets. This reduces the company’s dependence on economic and seasonal fluctuations. The company faces competition from a number of companies, including the manufacturers’ own subsidiaries. However, there are few competitors that come close to

14 OEM 2011

OEM’s extensive product range and geographic coverage. The company’s range embraces several types of products and caters to numerous industries. This also helps to reduce the company's operational risk. A key competitive factor is the company’s technical knowledge about the products and an understanding of the customers’ situation. The market is driven by the customers’ manufacturing volumes and sales trends. Many customers are also interested in limiting the number of subcontractors and search out companies like OEM for long-term strategic partnerships. A lot of customers are also keen to work with the same partner in several countries, including China. The market can be divided into geographic regions or product segments. The company has a higher market share in Sweden and Finland and is the market leader in some segments. In other countries, OEM still has a lower market share even if it has a prominent presence in certain product segments. EXPANDING PRESENCE IN CHINA

OEM is moving forwards its positions in China step by step. In 2011, the OEM organisation grew with several people and the ambition is to become a stronger local partner. OEM has followed a number of Swedish companies that have built up their manufacturing operations in China.

21 %

24 %

12 % 12 %

14 %

65 %

SALES Sweden 65 % Finland and the Baltic States 14 % Denmark, Norway, the UK and Central Eastern Europe 21 %

76 %

OPERATING PROFIT Sweden 76 % Finland and the Baltic States 12 % Denmark, Norway, the UK and Central Eastern Europe 12 %

13 %

63 %

NO. OF EMPLOYEES Sweden 63 % Finland and the Baltic States 13 % Denmark, Norway, the UK and Central Eastern Europe 24 %

15 OEM 2011

SWEDEN SWEDEN IS OEM INTERNATIONAL’S LARGEST MARKET REGION AND ACCOUNTS FOR 65 % OF SALES. SALES INCREASED BY 15 % TO SEK 1 037 MILLION OVER THE YEAR AND OPERATING PROFIT ROSE 23 % TO SEK 139 MILLION. MIKAEL THÖRNKVIST, MANAGING DIRECTOR OF OEM AUTOMATIC AB URBAN MALM, MANAGING DIRECTOR OF OEM ELECTRONICS AB

DEVELOPMENT DURING 2011 OEM’s development in Sweden was driven by the continued growth of the Swedish economy and a strong demand from Swedish export industry. In addition, OEM completed a number of acquisitions, broadened its product range and increased its market share. A key driving force was the growth in volume mainly among the largest customers, including Tetra Pak and BT-Toyota, and success in product areas such as batteries, cables, sensors, cooling fans and ball bearings. Elektro Elco, which offers lighting products, continues to experience rapid growth and posted a record year. MARKET OEM has long-standing relationships with many of the leading engineering companies in Sweden, including Atlas Copco, ABB, Alfa Laval, BT-Toyota, DeLaval and Tetra Pak, as well as a large number of wholesalers and other manufacturing companies. These include companies in heavy industry, machinery and equipment manufacturing industries, electric wholesalers and major end users. OEM drives sales of products to its customers from about 300 suppliers,

16 OEM 2011

all of whom are specialists and leaders within their respective product areas. OEM holds a leading position in several product areas. Competitors include the manufacturers’ own subsidiaries, trading companies such as Elektronikgruppen and companies within Indutrade and Addtech, local agency companies, such as Gycom, and international trading companies, such as Avnet. BUSINESS ACTIVITIES OEM’s whole range of industrial components and systems is marketed in Sweden. OEM works closely alongside its customers and has offices in nine locations across Sweden. It provides specialist knowledge by focusing on a number of product areas. Key account managers are responsible for major customers. The companies that were acquired in 2011 to broaden the product range were Svenska Batteripoolen, Svenska Helag, Flexitron and operations within Scapro. In addition, OEM strengthened its relationships with several existing suppliers and launched products from ten or so new suppliers, including Nippon Chemicon, Jauch,

Kingley Rubber, Optical filters, PIL Sensoren and Industrilås. One focus area is mechanical products, such as handles and locks from Industrilås. The company intends to enter into partnerships with more suppliers in this area next year. 2011 saw the launch of e-commerce, which accounts for a small but growing share of the company's incoming orders. OEM’s operations in China are part of this region’s responsibility, since they previously mainly sold products to Swedish customers. OEM has moved forwards its positions in China step by step. The business began as a quality and purchasing centre mainly for ball bearings and electronics. The portfolio quickly expanded to include motors and valves and OEM followed Swedish customers, such as Atlas Copco and Getinge, as they expanded into China. OEM has now recruited ten or so employees as part of its strategy to become a stronger local partner and to be able to manage more customers from countries that are extending their manufacturing operations in China.

STRONG GROWTH AND SEVERAL SUCCESSFUL ACQUISITIONS GOALS THE GOAL IS A GROWTH RATE AND AN OPERATING MARGIN WELL ABOVE 10 % A YEAR.

Mikael Thörnkvist

STRATEGY • To broaden the product range by intensifying relations with existing suppliers and initiating partnerships with new ones. • To drive sales with considerable market awareness and product know-how. • To acquire complementary businesses in new product areas.

Urban Malm

ACCOMPLISHED IN 2011 • 15 % increase in sales and 23 % increase in operating profit. • Enjoyed full advantage of the new logistics centre in Tranås and developed e-commerce activities. • Acquired Svenska Helag, Svenska Batteripoolen, Flexitron and operations within Scapro. FOCUS IN 2012 • To continue broadening the product range through closer cooperation with suppliers. • To improve the availability of products and coordinate more parts of the Group in Sweden and internationally. • To continue developing sales tools such as e-commerce.

OEM’s logistics centre in Tranås, which primarily supplies Sweden, Denmark and Norway.

1100

150

1000

Sales are conducted under the names of OEM Automatic, OEM Motor, OEM Electronics, Internordic Bearings, Telfa, Elektro Elco, Svenska Batteripoolen, Flexitron and Svenska Helag.

125

900 100 800

600

Number of employees: 345

700

Turnover

(SEK M)

Operating income

Consolidated sales 65% (63)

(SEK M)

17 OEM 2011

FINLAND BALTIC STATES FINLAND AND THE BALTIC STATES ARE OEM INTERNATIONAL’S OLDEST MARKET REGION OUTSIDE OF SWEDEN AND ACCOUNT FOR 14 % OF SALES. SALES IN 2011 INCREASED BY 13 % IN LOCAL CURRENCY BUT THE STRONG SWEDISH KRONA BOOSTED GROWTH BY 6 % AND SALES REACHED SEK 229 MILLION. OPERATING PROFIT ROSE 12 % TO SEK 22 MILLION. PATRICK NYSTRÖM, DIRECTOR FOR THE FINLAND AND BALTIC STATES REGION

DEVELOPMENT DURING 2011 OEM reported healthy growth in Finland and the Baltic States, driven largely by strong demand from the Finnish engineering industry. The company broadened its range of products across the region and now offers more or less the same products throughout the region. It also launched Electro Elco’s lighting products that are marketed under the Hide-a-Lite brand name. MARKET In Finland and the Baltic States, OEM offers industrial components and systems to the machinery and appliance manufacturing industries, electric wholesalers and major end users. Customers include many leading Finnish engineering companies and a large number of manufacturing companies. OEM has

18 OEM 2011

followed a large number of Nordic companies, which have established operations in the Baltic States in recent years. The company holds a leading position in the market in several product areas. Competitors include SKS, Omron, Juha Elektro, Arrow, Schneider Scanditron, Viru Electric and Tameo. BUSINESS ACTIVITIES In Finland and the Baltic States, OEM tailors products to the markets and sells products from about 250 suppliers, all of whom are specialists and leaders within their respective product areas. This is a large share of OEM’s entire range. OEM in Finland holds a particularly strong position in the market for cables and actively contributes to developing OEM’s entire portfolio in this area.

Throughout 2011, the product range was broadened and relationships with the suppliers were developed. The year marked the start of sales of motors from Bosch and linear motion products from THK. The partnership with Datalogic was successfully developed from safety light curtains to include its entire programme. A new business area for lighting was established in Finland with the launch of Hide-a-Lite. Extension work on the property in Turku will be completed in 2012 and the extra space this creates will allow for continued expansion and a logistics centre for Finland and the Baltic States. The positive experience that has been gained from the investment in Tranås plays a key role in this development process.

STRONG GROWTH IN EARNINGS AND INVESTMENT IN LOGISTICS GOALS THE GOAL IS AN ANNUAL GROWTH RATE OF 15% AND AN OPERATING MARGIN OF 10%.

Patrick Nyström

STRATEGY • To tailor and offer OEM’s product range to the markets of Finland and the Baltic States. • To broaden the product range and streamline the logistics from the offices in Turku, while the organisation in the Baltic States focuses on sales. • To acquire complementary businesses in new product areas. ACCOMPLISHED IN 2011 • Sales increased by 13 % in local currency. • S everal new products and the Hide-a-Lite lighting product area were launched. • Completion of a management development programme to ensure future growth opportunities. FOCUS IN 2012 • Create increased capacity, efficiency and service level of the logistics through the new centre in Turku. • Increase market share through active marketing efforts. • Broaden the portfolio of products by introducing new suppliers and through acquisitions.

OEM’s office in Turku, Finland.

250

Sales are conducted under the names of OEM Automatic, OEM Electronics, Hide-a-lite and Internordic Bearings.

225

Number of employees: 72

200 10 175

150

Consolidated sales 14 % (15)

Turnover

(SEK M)

Operating income

(SEK M)

19 OEM 2011

DENMARK NORWAY UNITED KINGDOM CENTRAL EASTERN EUROPE DENMARK, NORWAY, THE UNITED KINGDOM AND CENTRAL EAS ERN EUROPE ARE OEM INTERNATIONAL’S SECOND LARGEST MARKET REGION. SALES IN 2011 INCREASED BY 12 % IN LOCAL CURRENCY BUT THE STRONG SWEDISH KRONA BOOSTED GROWTH BY 4 % AND SALES REACHED SEK 324 MILLION. OPERATING PROFIT ROSE 22 % TO SEK 22 MILLION. JENS KJELLSSON, DIRECTOR FOR THE DENMARK, NORWAY, UK AND CENTRAL EASTERN EUROPE REGION

DEVELOPMENT DURING 2011 OEM delivered a very strong performance in the United Kingdom, the Czech Republic, Poland and Slovakia, which resulted in new record sales levels. Demand in Norway and Denmark showed slightly weaker growth. The new office in Hungary got off to a good start and sales began in the first quarter of 2012. This success is attributable to the strengthening of the market and OEM’s sharper competitive edge, achieved through the extension of its portfolio of products and dynamic marketing efforts. MARKET OEM’s customers in the region include leading engineering companies and manufacturing companies. Most of the more than 8500 customers are in the machinery and appliance manufacturing industry, electric wholesalers and end users. OEM has followed many British and Nordic customers, as they have moved their production to Eastern Europe. OEM has relationships at different levels and in several countries with many customers in order to support their production process. OEM’s market

20 OEM 2011

share is still low in the region and lies below 5 %. Competitors include the manufacturer’s own subsidiaries, companies in Indutrade and Addtech, and local agency companies such as Dacpol in Poland and IMO in the United Kingdom. BUSINESS ACTIVITIES The market region consists of seven companies in Denmark, Norway, the United Kingdom, Poland, the Czech Republic, Slovakia and Hungary that sell industrial components and systems. In all of the markets, OEM benefits greatly from its international coverage, logistics and economies of scale in product range development. At the same time, the companies have tremendous local market awareness and the portfolio and sales are tailored to the specific conditions of each market. The companies conduct more than 11 000 visits to customers each year and are working actively to develop and promote the new ecommerce platform. OEM Automatic in Hungary was set up in 2011 following an invitation by

Asco Controls, which is one of OEM’s key suppliers, to partner with it in the Hungarian market. The company has taken over about 400 customers and extended the range with a number of existing suppliers. The aim is to have established a significant presence in the Hungarian market within a few years. OEM is evolving its portfolio of products by building deeper relationships with more suppliers and offering a wider selection of OEM’s range in all markets. In 2011, OEM acquired Echobeach in the United Kingdom to enable it to take over agency operations for Conta-Clip and thereby extend its range of products. OEM offers products from more than 100 suppliers in this region. The central logistics hub in Tranås manages all logistics for Norway, approximately half of the logistics for Denmark and some for Poland, the Czech Republic and Slovakia. There are also local warehouses in the various markets for increased flexibility and to meet local delivery deadlines.

RECORD IN SEVERAL MARKETS AND LAUNCH IN HUNGARY GOALS THE GOAL IS AN ANNUAL GROWTH RATE OF MORE THAN 15 % AND AN OPERATING MARGIN OF MORE THAN OF 5 %. Jens Kjellsson

STRATEGY • To broaden the product range and eventually roll out OEM’s entire product range in all markets. • To develop sales by maintaining a high market presence. • To acquire complementary operations. ACCOMPLISHED IN 2011 • Sales increased by 12 % in local currency. • Acquired Echobeach in the United Kingdom. • Set up a new company in Hungary. FOCUS IN 2012 • To broaden the product range based on local market needs. • To continue developing logistics operations in order to provide a high level of service via logistic centres and local warehouses. • To develop sales by maintaining a high market presence and through e-commerce, and expansion in Hungary.

OEM Automatic UK’s office in Leicester.

350

Sales are conducted under the names of OEM Automatic, OEM Automatic Klitsø, OEM Electronics and Hide-a-lite.

300

Number of employees: 135

250 10 200

Consolidated sales 21 % (22)

150 07

Turnover

(SEK M)

-1

Operating income

(SEK M)

21 OEM 2011

SKILLED EMPLOYEES OEM’s COMPETITIVENESS DEPENDS ON THE EFFORTS AND DEVELOPMENT OF EVERY EMPLOYEE. OEM IS AN ATTRACTIVE WORKPLACE THAT RECRUITS AND DEVELOPS COMPETENT AND GOAL-ORIENTED INDIVIDUALS. IN 2011, THE COMPANY HAS TAKEN ON APPROXIMATELY 50 NEW EMPLOYEES.

CORPORATE CULTURE OEM is an international Group driven by technological knowledge, sales focus and business acumen. The catchwords in the Group-wide OEM spirit are positive attitude, dedication, goal focus, openness and modesty. SALES SCHOOL Sales reps at OEM work with an extensive range of products which they sell to leading industrial companies and a large number of small and medium-sized companies. OEM offers new sales reps a two-year training course in sales and marketing, divided into five parts. These consist of internal and external courses and are designed to equip the sales people with a sales methodology and improve their performance in a range of different situations. The initial years are followed by greater challenges where the sales rep runs strategic sales with a significant level of freedom. OEM is a learning organisation and provides sales reps with training throughout their career in, for example, negotiation techniques and IT tools for sales work.

22 OEM 2011

LEADERSHIP PROGRAMME OEM works actively to develop the company's provision of leadership in the short and long term. Internal and external development programmes for managers promote teamwork and introduce new knowledge. A comprehensive leadership programme for senior executive employees was carried out in Finland and the Baltic States in 2011. The programme objective is to train the next generation of managers in order to secure future growth opportunities. OEM’s leadership culture is based on strong teams and specific targets. Each manager has to build his or her own team and set clear individual goals for his or her employees.

“Our succesful integration of Echobeach shows the company’s strength along with a competent organisation.” RICHARD ARMSTRONG, MANAGING DIRECTOR OF OEM AUTOMATIC UK.

CAREER OPPORTUNITIES All employees at OEM are able to influence their own careers by being interested, creative and goal-oriented. Each employee at OEM has regular personnel appraisals with individual plans. The company encourages mobility between different operations and countries. The goal is to develop and recruit managers internally. Many employees start as sales reps or product specialists and subsequently develop into managers responsible for personnel and financial budgets. The next step is the position of product or product area manager and then business area manager. Most members of OEM’s executive management team have been part of the company for many years. RECRUITMENT OEM regularly recruits to ensure growth opportunities in all markets. In 2012, the company has increased its number of employees by 14 % to 587. The increase has mainly been among sales personnel and product specialists.

TRAINEE PROGRAMME In 2011, OEM again conducted its trainee programme which introduces young new employees with ambition and potential to managerial responsibility. The focus is on individuals who are interested in business and sales and often have a background in technical studies. The two-year programme includes an introduction

period, project work and hands-on sales experience. It involves work in both Sweden and other countries. STUDENT COOPERATION OEM collaborates with several different education institutions in order to develop the company’s skills and to get to know potential employees. To ensure a supply of future skills, OEM participates in the development of post-secondary school training courses in e-commerce, logistics and economics at Tranås Education Centre. The company also offers guidance in thesis research projects and work experience to establish relationships with students. EQUAL OPPORTUNITIES OEM’s industry has traditionally been dominated by men. OEM strives to improve equality in the organisation by seeking to employ more women to male-dominated positions. WELL-BEING OEM focuses on a good work environment and encourages a healthy lifestyle through physical exercise and preventive health care. The company is housed in attractive, spacious premises with ergonomically designed work areas.

“The trainee programme gave me a head start in my career. I was involved in strategic sales projects in Motors after just two years.” JENS LANDGREN, OEM AUTOMATIC KLITSÖ

225

2011 2010

150

175 100

AVERAGE NUMBER OF EMPLOYEES

570

504

EMPLOYEES AT YEAR-END

587

514

WOMEN

125

(%)

SICK LEAVE PERSON/YR

50 75

(days)

TRAINING COSTS/EMPLOYEE

FITNESS COSTS/EMPLOYEE

(TSEK)

– 12 1

1 8–

7 4–

3 1–

–1

– 56

– 46

– 36

– 26

–2

Age distribution

Years of experience in OEM

(no. of employees)

23 OEM 2011

QUALITY ENVIRONMENT & ETHICS OEM’s OPERATIONS ARE BASED ON HIGH QUALITY AND ENVIRONMENTAL AWARENESS OF THE COMPANY'S PRODUCTS AND DELIVERIES. THIS IS CREATED BY KNOWLEDGE, COMMITMENT, DOCUMENTED PROCEDURES AND STANDARDISED FOLLOW-UP.

THE ENVIRONMENT AS A COMPETITIVE ADVANTAGE OEM’s customers demand long-term sustainable technology. This involves creating the most appropriate solutions by, for example, using the right sensors and measuring instruments to control the end product, correctly designing motors to minimise energy consumption, balancing the flow of valves and pumps, using the right ball bearings and seals to reduce wear and loss of energy, optimising the interaction of other components and producing energy-efficient lighting. Our customers also want to reduce the number of suppliers and obviously benefit from efficient logistics without delays, additional costs or too much packaging. Our customers are driven by the need to increase sales, cut costs, minimise the impact on the environment and enhance their competitive edge in a world where their customers value environmentally-sound solutions. OEM therefore considers environmental concerns to be a competitive advantage. The company offers a well-thought-out range of products

24 OEM 2011

and provides the customer with the expertise required for selecting the right component to ensure the end product is of top quality, energy-efficient and has a long service life. All with the aim of minimising the impact on the environment. OEM sharpens this competitive edge by developing its product range, its expertise and its routines. FOCUS ON THE ENVIRONMENT OEM’s environmental work permeates the organisation. The most important work is conducted at the logistics centre in Tranås, which plays a central role in the company’s operations and is its largest facility. The company is now investing in a logistics centre in Finland with the same environmental focus. The environmental work is governed by the ambitions of the employees, customer requirements and legislation. The aim is to minimise the company’s short and long term negative environmental impacts. OEM’s focus on trade means that the greatest environmental impact comes from transportation, environmentally harmful substances, printed materials, packaging materials and heating.

The company is working assiduously to reduce its overall environmental footprint. Investment in logistics and improved routines lead to better coordination of transport resources, which reduces the negative impact on the environment. OEM also strives to use forwarding agents that have accredited environmental management systems and all company cars have the MK 2008 environmental classification. OEM handles many products that contain chemicals. The company works to ensure that products are handled correctly along the supplier chain, that contents are declared to customers and that options for recycling products are available. The aim of this process is to minimise adverse impacts on the environment and to comply with the European environmental requirements under the REACH Regulation and RoHS Directive. The company also satisfies requirements for manufacturing products in the most energy efficient way possible in compliance with the Ecodesign regulations. The subsidiaries that are certified conduct regular

OEM also assists the customer with finding the right component and contributes with knowledge so it can be efficiently implemented in end-to-end solutions. The customers’ perception of the quality is followed up carefully and the company works continuously on identifying and implementing improvements.

supplier assessments and have environmental coordinators. OEM used to print and distribute a huge amount of printed materials. Investment in digital marketing in recent years has succesfully reduced the need for printed catalogues. When purchasing printing services, we give priority to environmentally-certified suppliers and environmentally-approved paper. The company always strives to select the best environmental alternative. It chooses energy-efficient premises and environmentally-friendly solutions for heating, cooling and lighting. HIGH QUALITY PROCESSES AND PRODUCTS The foundation of OEM’s quality process is that all delivered products and services must live up to customer expectations. This means that our quality improvement activities apply to both products and processes. OEM works with its suppliers in close collaborative relationships to develop the quality of the range.

The customers demand quality by expecting the right product in the right place at the right time. The new logistics hub in Tranås has quickly met the targets for delivery reliability and has reduced the number of errors experienced by customers. The company is now expanding its logistics operations in Finland and the Baltic States. The continuous monitoring and development of delivery performance allows OEM to raise the bar to create world-class logistics capabilities. OEM is also actively involved in developing its own processes. It draws much of its inspiration from its customers, such as Toyota. Some areas of the company have implemented OEM Quality Development (OQD) which is based on Toyota’s Lean Production system for creating open processes without any waste of resources. For example, so-called whiteboard meetings are held every day at OEM Automatic in order to quickly solve any problems that may have arisen before they affect the customer. The company is also working in a structured manner with improvement meetings to identify streamlining opportunities. OEM strives to get rid of all long and laborious processes.

quality management system certification. Five of the companies in Sweden now have accredited systems. These are: • • • • •

OEM Automatic AB OEM Electronics AB Internordic Bearings AB Telfa AB OEM Motor AB

ETHICS OEM’s business activities are based on long-term employee, supplier and customer relationships. The values of the management and our employees contribute to cultivating these relationships. Common values involving respect for employees and business partners alike permeates our corporate culture and safeguards long-term stability both internally and to suppliers and customers. OEM uses a carefully designed methodology for placing requirements on the factories with which the company collaborates in China. This includes supplier assessments, checks and inspections in order to create clarity and ensure that the production complies with international guidelines.

MORE CERTIFIED COMPANIES In the past year, Telfa AB and OEM Motor AB have been awarded ISO 14001 environmental management system certification and ISO 9001

25 OEM 2011

SENIOR EXECUTIVES

26 OEM 2011

1. JAN CNATTINGIUS (born 1955) CFO. Group employee since 1985. Number of shares: 11 000 OEM Class B. 2. URBAN MALM (born 1962) Managing Director of OEM Electronics AB. Group employee since 1983. Number of shares: 2 800 OEM Class B. 3. SVEN RYDELL (born 1973) Marketing and Communications Director. Group employee since 2008. Number of shares: 959 OEM Class B 4. JENS KJELLSSON (born 1968) Director for the Denmark, Norway, UK and Central Eastern Europe region. Group employee since 1990. Number of shares: 11 000 OEM Class B. 5. JÖRGEN ZAHLIN (born 1964) Managing Director of OEM International AB since 1 March 2000. Managing Director and CEO. since 1 January 2002. Group employee since 1985. Number of shares: 102 000 OEM Class B. 6. PATRICK NYSTRÖM (born 1958) Director of Business Activities in Finland and the Baltic Countries. Group employee since 1982. Number of shares: 22 500 OEM Class B. 1

7. MIKAEL THÖRNKVIST (born 1968) Managing Director of OEM Automatic AB. Group employee since 1990. Number of shares: 5 000 OEM Class B.

27 OEM 2011

THE BOARD & SHARES

1. AGNE SVENBERG (born 1941) Board member since 1974. Managing Director until 29 February 2000. Engineer. Not employed by OEM. Other appointments: Chairman of the Board for EG’s El o Automation AB, Personality Gym AB and ISP AB. Number of shares: 665 400 OEM Class A and 226 530 OEM Class B.

of shares: 707 376 OEM Class A and 619 290 OEM Class B.

3. JERKER LÖFGREN (born 1950) Board member since 2010. LLM. Not employed by OEM. Senior Legal Counsel at Carnegie Private Banking. Other appointments: Chairman of the Board for Orvaus AB and Orvaus Nörvalen AB. Number of shares: 0.

2. HANS FRANZÉN (born 1940) Chairman of the Board 1992—2006. Board member since 1974. CEO until 31 Dec. 2001. Engineer. Not employed by OEM. Other appointments: Chairman of the Board for Tranås Rostfria AB, TR Equipment AB, Tranås Resebyrå AB, Opti Fresh AB, Linktech AB, Cendio AB and Handelsbanken’s local Board in Tranås. Board member of Ovacon AB and IB Medical AB. Number

28 OEM 2011

4. ULF BARKMAN (born 1957) Board member since 1997. MBA. Not employed by OEM. Number of shares: 42 000 OEM Class B. 5. LARS-ÅKE RYDH (born 1953) Board chairman since 2010 and Board member since 2004. M.Sc. Engineering. Not employed by OEM. Other appointments: Chairman of the Board for

Nefab AB, San Sac AB, Plastprint AB, Schuchardt Maskin AB and CombiQ AB. Board member of Nolato AB, HL Display AB, Olja economic association and Arla Plast AB. Number of shares: 12 000 OEM Class B. 6. PETTER STILLSTRÖM (born 1972) Board member since 2010. Master of Economics. Not employed by OEM. CEO and major shareholder in AB Traction. Other appointments: Chairman of the Board for Nilörngruppen AB and Softronic AB. Board member of PartnerTech AB, AB Traction and several unlisted companies in Traction’s sphere of influence. Number of shares: 0.

Financial information OEM aims to maintain a high level of quality in the information it provides to the market and media. The ambition is for the information to enable correct valuation and allow for liquid trade in the share. Financial information is published on the Group’s website, www.oem.se.

As a shareholder, you also have the opportunity to receive interim reports and other press releases by email as they are published on the market. Send an email to info@oem.se stating “Bolagsinformation” in the subject line and you will be included in our mailing list.

OWNERSHIP STRUCTURE OEM’s largest shareholders as at 30 December 2011 Class A shares

Class B shares

Percentage share capital

Percentage votes

Orvaus AB

1 627 320

2 802 360

19.2 %

28,9 %

Franzén Hans and family

1 280 376

1 347 990

11,4 %

21,4 %

Svenberg Agne and family

1 223 400

459 986

7,3 %

19,2 %

636 000

1 252 274

8,2 %

11,5 %

Lannebo equity Funds

2 373 263

10,3 %

3,6 %

Nordea Investment Funds

1 541 207

6,7 %

2,3 %

Ernström Finans AB

609 000

2,6 %

0,9 %

Skandinaviska Enskilda Banken S.A.,NQI

314 010

1,4 %

0,5 %

Didner & Gerge Aktiefond

310 200

1,3 %

0,5 %

Fjärde AP Fonden

305 329

1,3 %

0,5 %

11 315 619

69,6 %

89,4 %

7 024 747

30,4 %

10,6 %

4 767 096

18 340 366

100,0 %

AB Traction

Total 10 owners

4 767 096

Other Total Votes per share

SHARE TRENDS

OEM International B

OMX Stockholm All Share 70 60 50 40 30 20

2007

2008

2009

2010

2011

29 OEM 2011

KPIS FOR THE LAST FIVE YEARS OEM GROUP Net sales ** of which overseas **

2011

2010

2009

2008

2007

MSEK

1 590

1 430

1 240

1 438

1 294

35,3

37,2

37,0

38,5

35,4

Group's profit before tax from continuing operations **

MSEK

172,4

136,5

73,2

140,5

135,9

Consolidated profit for the year

MSEK

127,9

95,5

43,0

117,0

102,8

Return on **

18,3

15,5

8,6

16,4

15,3

Return on capital employed **

25,3

21,0

11,9

23,8

21,5

Return on shareholders' equity

20,6

16,5

7,4

20,9

17,6

Debt/equity ratio

ggr

0,13

0,14

0,21

0,17

0,16

Interest coverage ratio **

ggr

50,8

52,4

25,2

34,3

40,6

EBITDA/net sales **

12,7

11,6

8,2

11,0

11,4

Operating margin **

10,9

9,7

6,0

9,5

10,3

Profit margin **

10,8

9,5

5,9

9,8

10,7

Capital turnover rate

ggr/år

1,56

1,54

1,46

1,66

1,65

Net sales/employee**

MSEK

2,8

2,4

2,7

2,6

63,3

63,7

61,8

59,0

58,9

MSEK

108,1

115,6

103,5

161,7

44,3

153

136

128

131

Equity/assets ratio Cash flows from operating activities Quick ratio Average number of shares outstanding ***

tusental

23 164

23 169

Earnings per share ***

SEK

5,52

4,12

1,86

5,05

4,43

Earnings per share, continuing operations ** ***

SEK

5,42

4,32

2,19

4,56

4,26

tusental

23 169

Earnings per share ***

SEK

5,52

4,12

1,86

5,05

4,43

Earnings per share, continuing operations ** ***

SEK

5,42

4,32

2,19

4,56

4,26

Shareholders' equity per share* ***

SEK

27,95

25,63

24,37

25,51

22,88

Proposed dividends ***

SEK

3,50

3,00

2,00

3,00

Quoted price as per 31 December ***

SEK

55,00

54,50

41,30

35,00

42,90

P/E ratio

ggr

10,0

13,2

22,3

6,9

9,7

P/E ratio**

ggr

10,1

12,6

18,8

7,7

10,1

6,4

5,5

4,8

8,6

7,0

antal

570

504

516

572

520

MSEK

199

182

180

191

166

Total average shares ***

Direct return No. of employees ** Salaries and remuneration ** * Shareholders’ equity per share = visible equity per share. ** Continuing operations

*** The key performance indicators have been adjusted to reflect the 4:1 share split and an automatic redemption of every fourth share in Q2 2007. Earlier periods have been adjusted by a factor of 3, since the financial implication of the transaction is a 3:1 split combined with an extraordinary dividend.

30 OEM 2011

ADDRESSES OEM Automatic AB P.O. Box 1011, Dalagatan 4, SE-573 28 TRANÅS, Sweden Tel: +46-75-242 41 00 Fax: +46-75-242 41 10 E-mail: info@aut.oem.se Website: www.oemautomatic.se OEM Motor AB P.O. Box 1011, Fredriksbergsgatan 2 SE-573 28 Tranås, Sweden Tel: +46-75-242 44 00 Fax: +46-75-242 44 49 E-mail: info@motor.oem.se Website: www.oem-motor.se Telfa AB Telfa AB C/o: OEM Automatic AB, Dalagatan 4, SE-573 42 TRANÅS, Sweden Tel: +46-75-24 24 450 Fax: +46-75-24 24z495 E-mail: info@telfa.se Website: www.telfa.se Svenska Batteripoolen AB Faluvägen 21 SE-784 73 BORLÄNGE, Sweden Tel: +46-243-825 01 Fax: +46-243-682 23 E-mail: info@batteripoolen.se Website: www.batteripoolen.se

OEM Trading (Shanghai) Co., Ltd. Room 1117, Huaihai China Tower, 885 Renmin Road, Shanghai 200010 P.R. of China Tel: +86 (0)21 3307 0588 Fax: +86 (0)21 3307 0303 E-mail: info@oemtrading.com.cn Website: www.oemtrading.com.cn IBEC Aartsdijkweg 111, NL-2676 LE MAASDIJK, The Netherlands Tel: +31-174 52 51 00 Fax: +31-174 52 51 06 E-mail: info@ibec.biz Website: www.ibec.biz OEM Automatic OY P.O. Box 9 FI-20101 TURKU, Fiskarsinkatu 3, 20750 TURKU, Finland Tel: +35-8-207 499 499 Fax: +35-8-207 499 456 E-mail: asiakaspalvelu@oem.fi Website: www.oem.fi OEM Automatic OÜ Kanali tee 1-328, EE-10112 TALLINN, Estonia Tel: +37-2-6550 871 Fax: +37-2-6550 873 E-mail: info@oem.ee Website: www.oem.ee

OEM Automatic Klitsø A/S Engholm Parkvej 4, DK-3450 Allerød, Denmark Tel: +45-70 10 64 00 Fax: +45-70 10 64 10 E-mail: info@oemklitso.dk Website: www.oemklitso.dk OEM Automatic Ltd Whiteacres Cambridge Road, Whetstone LEICESTER LE8 6ZG, United Kingdom Tel: +44-116 284 99 00 Fax: +44-116 284 17 21 E-mail: information@uk.oem.se Website: www.oem.co.uk OEM Automatic Sp. z o. o. ul. Postepu 2, PL-02-676 WARSAW, Poland Tel: +48-22-863 27 22 Fax: +48-22-863 27 24 E-mail: info@pl.oem.se Website: www.oemautomatic.com.pl OEM Electronics PL ul. Postepu 2, PL-02-676 WARSAW, Poland Tel: +48-22-86 32 722 Fax: +48-22-86 32 724 E-mail: info@oemelectronics.pl Website: www.oemelectronics.pl OEM Automatic spol. s r.o. Baarova 3a, CZ-140 00 4 PRAGUE, Czech Republic Tel: +42-0-241 484 940 Fax: +42-0-241 484 941 E-mail: info@oem-automatic.cz Website: www.oem-automatic.cz

Elektro Elco AB Tallvägen 5, SE-564 35 BANKERYD, Sweden Tel: +46-36-290 60 00 Fax: +46-36-290 60 50 E-mail: elektro@elco.se Website: www.elco.se

OEM Automatic UAB Paliuniskio g. 1, LT-35113 PANEVEZYS, Lithuania Tel: +37-0-6550 0323 Fax: +37-0-4557 7987 E-mail: info@oem.lt Website: www.oem.lt

OEM Electronics AB P.O. Box 1025, Norrabyvägen 6B, SE-573 29 TRANÅS, Sweden Tel: +46-75-242 45 00 Fax: +46-75-242 45 09 E-mail: info@oemelectronics.se Website: www.oemelectronics.se

OEM Automatic SIA Vilandes 3-3, LV-1010 RIGA, Latvia Tel: +37-1-2919 9382 E-mail: info@oemautomatic.lv Website: www.oemautomatic.lv

OEM Automatic s.r.o. Bratislavska 8356, SK-917 01 TRNAVA, Slovakia Tel: +42-1-911 122 009 Fax: +42-1-335 331 567 E-mail: info@oem-automatic.sk Website: www.oem.sk

Internordic Bearings FI P.O. Box 9, FI-20101 TURKU, Fiskarsinkatu 3, 20750 TURKU, Finland Tel: +35-8-207 499 499 Fax: +35-8-207 499 456 E-mail: asiakaspalvelu@oem.fi Website: www.internordic.fi

OEM Automatic Kft. P.O. Box: 111 HU-2058 BUDAÖRS, Hungary Tel: +36-23-880 895 Fax: +36-23-880 897 E-mail: info@oemautomatic.hu Website: www.oemautomatic.hu

OEM Electronics OY P.O. Box 9, FI-20101 TURKU, Fiskarsinkatu 3, 20750 TURKU, Finland Tel: +358-207 499 300 Fax: +358-207 499 496 E-mail: info@oemelectronics.fi Website: www.oemelectronics.fi

OEM International AB P.O. Box 1009, Norrabyvägen 6B, SE-573 28 TRANÅS, Sweden Tel: +46-75-242 40 00 Fax: +46-75-242 40 29 E-mail: info@oem.se Website: www.oem.se

Internordic Bearings AB P.O. Box 105, Lerbacksgatan 3 SE-571 22, NÄSSJÖ, Sweden Tel: +46-75-242 49 40 Fax: +46-75-242 49 59 E-mail: info@internordic.biz Website: www.internordic.biz Svenska Helag AB P.O. Box 11091, Källbäcksrydsgatan 6 SE-507 11 BORÅS, Sweden Tel: +46-33-15 70 55 Fax: +46-33-15 09 51 E-mail: helag@helag.se Website: www.helag.se Flexitron AB P.O. Box 7117, Tumstocksvägen 11A SE-187 12 TÄBY. Sweden Tel: +46-8-732 85 60 Fax: +46-8-756 91 32 E-mail: sales@flexitron.se Website: www.flexitron.se

OEM Automatic AS Postboks 2144 STRØMSØ, Bjørnstjerne Bjørnsonsgate 110, NO-3003, DRAMMEN, Norway Tel: +47-32 21 05 00 Fax: +47-32 21 05 01 E-mail: info@no.oem.se Website: www.oem.no

31 OEM 2011