Risk management

The OEM Group's primary risks are connected to currencies, supplier relations, customer credits and customer guarantees. Through matching, however, the risks have almost been completely eliminated, through risk elimination that contributes to securing a relatively stable coverage ratio over time for the Group. In addition to the named risks, the Group has a limited interest risk in the form of a cash flow risk.

OEM collaborates with about 300 suppliers and is in charge of marketing and sales activities in selected markets. OEM reaches customer groups that the suppliers would have difficulty accessing themselves, while simultaneously marketing the suppliers' products on several markets. The relationships are built on a long-standing, close collaboration.

Customer guarantees have not been a cause of any risks of practical significance. There are often corresponding rights of recourse against the supplier for provided guarantees. This management has worked well in practice and has not been the cause of any significant losses. The OEM Group's financial activities and management of financial risks is primarily performed in the Parent Company. There are plans for risk management and how the risks are to be limited. The plans are distinguished by a low level of risk. The basis is a structured and effective management of the financial risks that arise in the business units.