Statement of the Board of Directors pursuant to Chapter 18, Section 4 of the Swedish Companies Act

Download Statement of the Board of Directors pursuant to Chapter 18, Section 4 of the Swedish Companies Act

 

Statement of the Board of Directors of OEM International AB (publ) pursuant to Chapter 18, Section 4 of the Swedish Companies Act

The nature, scope and risks of the business
The nature and scope of the business are described in the Articles of Association and published annual reports. The business carried on in the Company does not entail any risks other than those that arise, or can be expected to arise, in the industry, or risks associated with operating a business general. For information on significant events, see the year-end report; no other events have occurred that affect the Company’s ability to pay a dividend. The Company’s reliance on economic cycles does not differ from the industry in general.

Financial position of the Company and the Group
BThe financial position of the Company and the Group as at 31 December 2023 is presented in the year-end report for 2023. The year-end report also specifies the accounting policies used for valuation for assets, provisions and liabilities.

The Board of Directors is proposing that the Annual General Meeting on 23 April 2024 approve a dividend of SEK 1.75 per share. The proposed dividend corresponds to 18% of the equity of the Company and 12% of the equity of the Group.

According to the Annual Report, the Group’s equity/assets ratio is 68% (57% in the previous year). The equity/assets ratio of the Company and the Group is good and higher than for the industry in general. The Company’s equity/assets ratio is 82% (65% in the previous year).

The proposed dividend does not jeopardise the completion of the investments deemed necessary by the Group and the Company. Neither will the proposed dividend impact the Company’s ability to fulfil existing and anticipated payment obligations in a timely fashion. The Company’s liquidity forecast includes the ability to meet variations in current payment obligations.

The company’s financial position does not lead to an assessment other than that the Company is able to continue as a going concern and can be expected to satisfy its obligations in the short and long term.

It is the opinion of the Board of Directors that the amount of equity, as reported in the most recent year-end report for 2023 is reasonable relative to the size of the Company’s operations and the risks associated with operating the business and considering the proposed dividend.

Justification of the dividend
In reference to the above and to other information that has been brought to the attention of the Board of Directors, it is the Board’s opinion that a comprehensive assessment of the financial position of the Company and the Group leads to the conclusion that the proposed dividend is justified in view of the demands that the nature, scope and risks of the business place upon the size of the Company’s and the Group’s equity, and the consolidation requirements, liquidity and position otherwise of the Company and the Group.

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