Nolato B

Annual Report • Feb 1, 2010

Nolato AB (publ) year-end report 2009

Good progress and a strong financial position

• Fourth quarter of 2009 in brief
• Sales rose by 5% to SEK 786 million (747)
• Operating income (EBITA) was up 12% to SEK 63 million (56)
• Previously announced non-recurring items had a negative impact of SEK 20 million on operating income
• Net income was SEK 57 million (46)
• Earnings per share increased to SEK 2.17 (1.75)
• Cash flow after investments was SEK 79 million (152, excluding disposals)
• Full-year 2009 in brief
• Sales fell by 8% to SEK 2,602 million (2,824)
• Operating income (EBITA) was SEK 166 million (240)
• Earnings per share were SEK 4.68 (6.77)
• The equity/assets ratio rose to 51% (50%)
• The Board proposes a dividend of SEK 3.00 per share (2.75)

SEK millions unless otherwise specified	Q4 2009	Q4 2008	Full year 2009	Full year 2008
Net sales	786	747	2,602	2,824
Operating income (EBITDA) 1)	126	95	343	399
Operating income (EBITA) 2)	63	56	166	240
EBITA margin, %	8.0	7.5	6.4	8.5
Income after financial items	58	47	148	216
Net income	57	46	123	178
Earnings per share before and after dilution, SEK*	2.17	1.75	4.68	6.77
Adjusted earnings per share, SEK* 3)	2.24	1.82	4.90	6.99
Average number of shares, thousands*	26,307	26,307	26,307	26,307
Cash flow after investments, excl. acquisitions and disposals	79	152	139	296
Net investments affecting cash flow, excl. acquisitions and disposals	38	28	118	155
Return on capital employed, %	—	—	12.1	18.4
Return on shareholders' equity, %	—	—	11.5	18.4
Equity/assets ratio, %	—	—	51	50
Net debt	—	—	40	95

■ Group highlights

* The company does not have any financial instrument programmes which involve any dilution in the number of shares.

This document is a translation from Swedish. In the event of any difference between this version and the Swedish original, the Swedish original shall govern.

¹⁾ Operating income (EBITDA): Earnings before interest, taxes, depreciation and amortisation.

²⁾ Operating income (EBITA): Earnings before interest, taxes and amortisation of intangible assets arising from acquisitions.

³⁾ Adjusted earnings per share: Net income, excluding amortisation of intangible assets arising from acquisitions, divided by the average number of shares.

■ Sales by quarter

Fourth quarter 2009

• lion (747)
• Operating income (EBITA) rose to SEK 63 million (56)
• Good progress for Nolato Telecom
• Previously announced non-recurring items had a negative impact of SEK 20 million on operating income

■ Sales

The Group's sales during the fourth quarter totalled SEK 786 million (747), representing an increase of 5% compared with the corresponding period during the previous year. Currency exchange rate differences had a positive impact on sales of around 1%.

Nolato Medical saw sales rise to SEK 178 million (171), corresponding to growth of 4%. Currency conversion effects had no impact on sales. Volumes remained stable for most of the business area's customer segments.

Nolato Telecom's sales rose by 2% to SEK 372 million (364). Excluding currency conversion effects, sales rose by 1%. Changes made by one of the business area's main customers to its product range had a negative impact during the first six months. Successful new product start-ups during the third quarter, combined with strong demand from a number of the business area's customers, resulted in high production volumes during the fourth quarter.

Nolato Industrial's sales rose by 11% to SEK 236 million (212). Volumes have stabilised at a low level in most customer segments, although planning is short-term. At the same time, growing market shares and new products have led to a rise in sales.

■ Income

The Group's operating income (EBITA) was SEK 63 million (56).

Nolato Medical's operating income (EBITA) was SEK 22 million (27), Nolato Telecom's was SEK 30 million (32) and Nolato Industrial's was SEK 18 million (0). It was announced in December that Nolato Telecom's network product manufacturing will be centralised in Asia. A non-recurring item of SEK 20 million was charged to expenses during the fourth quarter in relation to this, SEK 6 million of which is deemed to affect cash flow.

Nolato Medical's EBITA margin was 12.4% (15.8%). This margin was affected by continued investments in projects and technology.

Nolato Telecom's EBITA margin was 8.1% (8.8%). Excluding non-recurring items, this margin stood at a strong 13.4% (8.8%). A new product mix and high levels of capacity utilisation have had a positive impact on the margin compared with the corresponding period during the previous year.

Nolato Industrial's EBITA margin stood at 7.6% (0.0%). This margin was affected by SEK 8 million in costs relating to staff cut-backs during the previous year.

■ Sales, operating income (EBITA) and EBITA margin by business area

SEK M	Sales Q4/2009	Sales Q4/2008	Op. income (EBITA) Q4/2009	Op. income (EBITA) Q4/2008*	EBITA margin Q4/2009	EBITA margin Q4/2008*
Nolato Medical	178	171	22	27	12.4%	15.8%
Nolato Telecom	372	364	30	32	8.1%	8.8%
Nolato Industrial	236	212	18	0	7.6%	0.0%
Group adjustments, Parent Co.	0	0	– 7	– 3	—	—
Group total	786	747	63	56	8.0%	7.5%

Operating income (EBITA): Earnings before interest, taxes and amortisation of intangible assets arising from acquisitions.

* Comparison figures have been recalculated in accordance with the amended accounting principles of IFRS 8.

Overall, the Group's EBITA margin was 8.0% (7.5%).

Currency effects, i.e. conversion effects and transaction effects, have had a positive impact on income of around SEK 4 million (+6) during the fourth quarter.

Operating income (EBIT) was SEK 61 million (54).

Income after net financial items was SEK 58 million (47). Net financial items included SEK 0 million in currency exchange rate difference effects (–3, most of which related to unrealised translation differences for loans in foreign currencies for operations outside Sweden).

Net income was SEK 57 million (46). Earnings per share were SEK 2.17 (1.75). Adjusted earnings per share excluding amortisation of intangible assets arising from acquisitions were SEK 2.24 (1.82). The effective tax rate was 2% (2%). A change in tax rates and one-off tax incentives relating to foreign companies had, together with the other one-off effects, a positive effect of SEK 9 million on tax expenses.

Full year 2009

■ Sales and income

The Group's sales totalled SEK 2,602 million (2,824), which was 8% lower compared with 2008. Currency effects had a positive impact on sales of 6%.

The Group's operating income (EBITA) was SEK 166 million (240). The EBITA margin was 6.4% (8.5%). The bankruptcy payment from BenQ had a positive effect of SEK 35 million on income, while costs associated with efficiency improvement measures carried out had a negative impact of SEK 15 million during the second quarter and the cost of winding down operations had a negative impact of SEK 20 million during the fourth quarter. Overall, non-recurring items therefore had a net impact of SEK 0 million.

Operating income (EBIT) was SEK 158 million (232).

Income after net financial items was SEK 148 million (216). Net financial items included SEK 0 million in currency exchange rate difference effects (2, most of which related to translation differences for loans in foreign currencies for operations outside Sweden).

Net income was SEK 123 million (178). Earnings per share were SEK 4.68 (6.77). Adjusted earnings per share excluding amortisation of intangible assets arising from acquisitions were SEK 4.90 (6.99). The effective tax rate was 17% (18%).

The return on capital employed was 12.1% (18.4%). The return on operating capital was 13.9% (19.7%).

■ Nolato Medical

Sales and income (SEK millions)
Full year	2009 2008
Sales	692	632
Operating income (EBITA)	89	89
EBITA margin (%)	12.9	14.1
Operating income (EBIT)	84	84

Nolato Medical saw sales rise to SEK 692 million (632). This corresponds to an increase of 9% compared with the same period during the previous year. Excluding currency conversion effects, sales rose by 7%. Sales accounted for 27% (22%) of the Group's entire sales.

Operating income (EBITA) stood at SEK 89 million (89). The EBITA margin was 12.9% (14.1%). Nolato Medical is continuing to invest in being able to offer new and existing customers a wider range of project management and technical resources, as well as systems deliveries. These investments explain the slightly lower margin compared with the corresponding period during the previous year.

■ Nolato Telecom

Sales and income (SEK millions)
Full year	2009	2008
Sales		1,090 1,243
Operating income (EBITA)	86	114
EBITA margin (%)	7.9	9.2
Operating income (EBIT)	86	114

Nolato Telecom's sales totalled SEK 1,090 million (1,243), a drop of 12% compared with the same period during the previous year. Excluding currency conversion effects, sales fell by 24%. Sales accounted for 42% (44%) of the Group's entire sales. Changes made by one of the business area's main customers to its product range had a negative impact during the first six months. During the last six months of 2009 new products have been started up, and volumes for other products have been high.

Operating income (EBITA) was SEK 86 million (114). The EBITA margin was 7.9% (9.2%). Excluding the bankruptcy payment from BenQ and non-recurring items relating to centralising network product manufacturing in Asia, the EBITA margin was 6.5% (9.2%). The margin was affected mainly by low levels of capacity utilisation during the first six months.

As announced in the report for the first quarter, Nolato Telecom decided at the beginning of 2009 to set up a small converting unit in Chennai, India. Production began as planned during January 2010. The investment will total around SEK 10 million over a period of three years.

■ Nolato Industrial

Sales and income (SEK millions)
Full year	2009	2008
Sales	824	950
Operating income (EBITA)	19	55
EBITA margin (%)	2.3	5.8
Operating income (EBIT)	16	52

Nolato Industrial's sales dropped by 13% to SEK 824 million (950). Sales accounted for 31% (34%) of the Group's entire sales. Nolato Industrial has continued to win market shares, and new project start-ups have gone some way towards countering the generally weak levels of demand.

Operating income (EBITA) was SEK 19 million (55). The EBITA margin was 2.3% (5.8%). Non-recurring items connected with efficiency improvement measures totalling SEK 12 million were charged to income. Excluding these costs, the EBITA margin stood at 3.8% (5.8%). The measures in question have now been carried out, and had a positive effect from the second quarter onwards.

■ Cash flow

Cash flow before investments totalled SEK 257 million (451), affected mainly by lower earnings and a growing need for working capital. The change in working capital was a negative SEK –7 million (+86), as a result of higher levels of activity at Nolato Telecom during the second half of the year. Cash flow after investments totalled SEK 139 million (296 excluding disposals of operations). The bankruptcy payment from BenQ is included in the cash flow. Net investments affecting cash flow totalled SEK 118 million (155 excluding disposals of operations).

■ Financial position

Interest-bearing assets totalled SEK 172 million (168), and interest-bearing liabilities and provisions totalled SEK 212 million (263). Net debt thus totalled SEK 40 million (95). Shareholders' equity stood at SEK 1,086 million (1,058). The equity/assets ratio was 51% (50%). During the second quarter, dividends totalling SEK 72 million were

SEK millions	Q4 2009	Q4 2008	Full year 2009	Full year 2008
Net sales	786	747	2,602	2,824
Gross income excl. depreciation/amortisation	170	154	501	595
As a percentage of net sales	21.6	20.6	19.3	21.1
Costs	– 44	– 59	– 158	– 196
As a percentage of net sales	5.6	7.9	6.1	6.9
Operating income (EBITDA)	126	95	343	399
As a percentage of net sales	16.0	12.7	13.2	14.1
Depreciation and amortisation	– 63	– 39	– 177	– 159
Operating income (EBITA)	63	56	166	240
As a percentage of net sales	8.0	7.5	6.4	8.5
Amortisation of intang. assets arising from acquisitions	– 2	– 2	– 8	– 8
Operating income (EBIT)	61	54	158	232
Financial items	– 3	– 7	– 10	– 16
Income after financial items	58	47	148	216
Tax	– 1	– 1	– 25	– 38
As a percentage of income after financial items	1.7	2.1	16.9	17.6
Net income	57	46	123	178

■ Consolidated performance analysis

paid to shareholders. At the end of last year, Nolato extended loan agreements with credit institutions by SEK 350 million, with a three-year term.

Nolato therefore has total loan agreements of SEK 700 million, of which SEK 350 million has a three-year term and SEK 350 million runs until the end of 2010.

■ Personnel

The average number of employees during the period was 4,308 (4,531).

■ Significant risks

and uncertainty factors

The business risks and risk management of the Group and the Parent Company, along with the management of financial risks, are described in the 2008 Annual Report on pages 32–33, and in Note 4 on pages 50–51.

No significant events have occurred during the period that would significantly affect or change these descriptions of the Group and the Parent Company's risks or the management thereof.

■ Ownership and legal structure

Nolato AB (publ), Swedish corporate identity number 556080-4592, is the Parent Company of the Nolato Group.

Nolato's B shares are listed on the NASDAQ OMX Nordic Exchange in the Stockholm Small Cap segment, where they are included in the information technology sector.

Nolato had 6,611 shareholders as at 30 December 2009. The largest shareholders were the Paulsson family with 12% of the share capital, the Jorlén family with 11%, and the Boström family with 9%. The next largest shareholders were seven institutional investors, who together owned an additional 28% of the share capital, with Lannebo Fonder, Svolder and If Skadeförsäkring being the largest. The ten largest shareholders hold 60% of the share capital and 80% of the votes.

■ Dividend

At the Annual Meeting, the Board of Directors and the President and CEO will propose a dividend of SEK 3.00 per share (2.75). This represents a total dividend of SEK 79 million (72), and corresponds to 64% of the earnings per share.

■ The Parent Company

Sales totalled SEK 21 million (22). The drop in sales is a result of lower costs levied on subsidiaries. Income after financial items was SEK 26 million (–122). This increase is mainly due to higher dividends from subsidiaries.

■ Accounting and valuation principles

Nolato's consolidated accounts have been prepared in accordance with International Financial Reporting Standards (IFRS), as adopted by the EU.

The consolidated accounts have been prepared in accordance with the same principles as those applied to the Annual Report, which are described in the 2008 Annual Report on pages 45–49.

The consolidated year-end report has been prepared in accordance with IAS 34 (Interim Financial Reporting). The applicable provisions of the Swedish Annual Accounts Act and the Swedish Securities Market Act have also been applied. The Parent Company year-end report has been prepared in accordance with the Swedish Annual Accounts Act and the Swedish Securities Market Act, in line with the provisions of RFR 2.2, Accounting for Legal Entities.

The new or revised IFRS standards or IFRIC interpretations that entered into force on 1 January 2009 have not had any material effect on the consolidated income statements or balance sheets.

■ Financial position

SEK millions	31/12/2009	31/12/2008
Interest-bearing liabilities, credit institutions	120	174
Interest-bearing pension liabilities	92	89
Total borrowings	212	263
Cash and bank	– 172	– 168
Net debt	40	95
Working capital	133	103
As a percentage of sales (avg.) (%)	4.5	5.2
Capital employed	1,298	1,321
Return on capital employed (avg.) (%)	12.1	18.4
Shareholders' equity	1,086	1,058
Return on shareholders' equity (avg.) (%)	11.5	18.4

The EU has approved and amended certain IASB and IFRIC standards and statements for 2009 onwards. IFRS 8 Operating Segments affects Nolato primarily through a larger proportion of joint Group costs being distributed among the operating segments, i.e. Nolato's business areas. In accordance with this standard, corresponding comparison figures for 2008 have also been recalculated in line with the new principles.

■ Annual Meeting

The Annual Meeting of Nolato AB will be held on 28 April at 4 pm at Idrottsparken in Grevie.

Any shareholders who wish to submit proposals to the Nomination Committee can contact one of the Nomination Committee representatives by e-mail:

• henrik.jorlen@gmail.com
• gunbostrom@gmail.com
• erik.paulsson@hansan.se
• johan.lannebo@lannebofonder.se

• magnus.molin@svolder.se

• Financial information schedule

• Annual Report 2009:
• Nolato's Annual Report will be published on the company's website, www.nolato.se, during week 12. A copy of the Annual Report will also be sent to those Nolato shareholders who have specifically requested a copy.
• Three-month interim report 2010: 28 April 2010
• 2010 Annual Meeting: 28 April 2010
• Six-month interim report 2010: 21 July 2010
• Nine-month interim report 2010: 26 October 2010

Torekov, 1 February 2010 Nolato AB (publ) The Board of Directors The information contained in this interim report is the information which Nolato must make public in accordance with the Swedish Securities Market Act and/or the Swedish Financial Instruments Trading Act. This information was made public on 1 February 2010 at 2:30 pm.

This report has not been audited by the Company's auditors.

For further information please contact:

• Hans Porat, President and CEO, phone +46431 442294.
• Per-Ola Holmström, CFO, phone +46431 442293.

■ Income statement (summary)

SEK millions	Q4	Q4	Full year	Full year
	2009	2008	2009	2008
Net sales	786	747	2,602	2,824
Cost of goods sold	– 677	– 633	– 2,273	– 2,385
Gross profit	109	114	329	439
Selling expenses	– 17	– 20	– 71	– 67
Administrative expenses	– 39	– 40	– 132	– 140
Other operating income	5	0	41	0
Other operating expenses	3	0	– 9	0
	– 48	– 60	– 171	– 207
Operating income	61	54	158	232
Financial items	– 3	– 7	– 10	– 16
Income after financial items	58	47	148	216
Tax	– 1	– 1	– 25	– 38
Net income	57	46	123	178
All earnings are attributable to the Parent Co.'s shareholders
Depreciation/amortisation	65	41	185	167
Earnings per share before and after dilution (SEK)	2.17	1.75	4.68	6.77
Number of shares at the end of the period (thousands)	26,307	26,307	26,307	26,307
Average number of shares (thousands)	26,307	26,307	26,307	26,307

■ Comprehensive income

SEK millions	Q4 2009	Q4 2008	Full year 2009	Full year 2008
Net income	57	46	123	178
Other comprehensive income
Translation differences for the period	3	46	– 25	80
Cash flow hedges	– 1	– 3	3	– 3
Tax attributable to cash flow hedges	0	1	– 1	1
Other comprehensive income, net of tax	2	44	– 23	78
Total comprehensive income for the period attrib. to the Parent Co.'s shareholders	59	90	100	256

■ Balance sheets (summary)

SEK millions	31/12/2009	31/12/2008
Assets
Fixed assets
Intangible fixed assets	373	377
Tangible fixed assets	702	767
Other securities held as fixed assets Other long-term receivables	2 1	2 0
Deferred tax assets	25	20
Total fixed assets	1,103	1,166
Current assets
Inventories	215	238
Accounts receivable	573	513
Other current assets	50	41
Cash and bank	172	168
Total current assets	1,010	960
Total assets	2,113	2,126
Shareholders' equity and liabilities
Shareholders' equity	1,086	1,058
Long-term liabilities and provisions 1)	202	200
Short-term liabilities and provisions 1)	825	868
Total liabilities and provisions	1,027	1,068
Total shareholders' equity and liabilities	2,113	2,126
1) Interest-bearing/non-interest-bearing liabilities and provisions:
Interest-bearing liabilities and provisions	212	263
Non-interest-bearing liabilities and provisions	815	805
Total liabilities and provisions	1,027	1,068

■ Change in shareholders' equity

SEK millions	Full year 2009	Full year 2008
Shareholders' equity at the beginning of the period	1,058	881
		256
Dividends	– 72	– 79
Shareholders' equity at the end of the period attributable to the Parent Company's shareholders	1,086	1,058
Total comprehensive income for the period	100

During 2009, a dividend totalling SEK 72 million (79) was paid to the Parent Company's shareholders,

corresponding to SEK 2.75 per share (3.00).

The Group does not have any incentive programmes resulting in a dilutive effect.

■ Cash flow statements (summary)

SEK millions	Q4 2009	Q4 2008	Full year 2009	Full year 2008
Cash flow from operating activities before changes in working capital	113	94	264	365
Changes in working capital	4	86	– 7	86
Cash flow from operations	117	180	257	451
Cash flow from investment activities	– 38	– 16	– 118	– 143
Cash flow before financing activities	79	164	139	308
Cash flow from financing activities	6	– 143	– 130	– 215
Cash flow for the period	85	21	9	93
Liquid funds at the beginning of the period	83	140	168	62
Exchange rate difference in liquid funds	4	7	– 5	13
Liquid funds at the end of the period	172	168	172	168

Full-year 2008 and fourth quarter 2008 include the sale of property totalling SEK 12 million.

During the second quarter of 2009 a payment of SEK 35 million from the BenQ bankruptcy was received.

■ Earnings per share

SEK millions	Q4 2009	Q4 2008	Full year 2009	Full year 2008
Net income	57	46	123	178
Adjusted earnings:
Amortisation of intangible assets arising from acquisitions	2	2	8	8
Tax on amortisation	0	0	– 2	– 2
Adjusted earnings	59	48	129	184
Average number of shares (thousands)*	26,307	26,307	26,307	26,307
Earnings per share before and after dilution (SEK)*	2.17	1.75	4.68	6.77
Adjusted earnings per share (SEK)*	2.24	1.82	4.90	6.99

*The Company does not have any ongoing financial instrument programmes which involve any dilution in the number of shares.

■ Five-year overview

	2009	2008	2007	2006	2005
Net sales (SEK millions)	2,602	2,824	2,421	2,702	2,256
Operating income (EBITA) (SEK millions)	166	240	197	79	221
EBITA margin (%)	6.4	8.5	8.1	2.9	9.8
Operating income (EBIT) (SEK millions)	158	232	190	78	221
Income after financial items (SEK millions)	148	216	171	69	208
Net income (SEK millions)	123	178	150	48	181
Return on capital employed (%)	12.1	18.4	16.3	7.4	21.0
Return on shareholders' equity (%)	11.5	18.4	18.0	5.9	24.2
Equity/assets ratio (%)	51	50	46	46	50
Earnings per share (SEK)	4.68	6.77	5.70	1.82	6.88
Adjusted earnings per share (SEK)	4.90	6.99	5.32	6.08	6.31

■ Quarterly data

Consolidated financial results in brief			Q1	Q2	Q3	Q4	Full year
Net sales (SEK millions)		2009	606	557	653	786	2,602
		2008	690	694	693	747	2,824
Operating income (EBITDA) (SEK millions)		2009	56	77	84	126	343
		2008	100	103	101	95	399
Operating income (EBITA) (SEK millions)		2009	16	39	48	63	166
		2008	59	61	64	56	240
EBITA margin (%)		2009	2.6	7.0	7.4	8.0	6.4
		2008	8.6	8.8	9.2	7.5	8.5
Operating income (EBIT) (SEK millions)		2009	14	37	46	61	158
		2008	57	59	62	54	232
Income after financial items (SEK millions)		2009	6	42	42	58	148
		2008	53	59	57	47	216
Net income (SEK millions)		2009	4	29	33	57	123
		2008	41	46	45	46	178
Cash flow after inv., excl. acq. and disp. (SEK millions)		2009	56	35	– 31	79	139
		2008	47	19	78	152	296
Earnings per share before and after dilution (SEK)		2009	0.15	1.10	1.26	2.17	4.68
		2008	1.56	1.75	1.71	1.75	6.77
Adjusted earnings per share (SEK)		2009	0.23	1.14	1.29	2.24	4.90
		2008	1.63	1.79	1.75	1.82	6.99
Average number of shares (thousands)		2009	26,307	26,307	26,307	26,307	26,307
		2008	26,307	26,307	26,307	26,307	26,307
Net sales per business area (SEK millions)			Q1	Q2	Q3	Q4	Full year
Nolato Medical		2009	178	177	159	178	692
		2008	147	158	156	171	632
Nolato Telecom		2009	226	183	309	372	1,090
		2008	284	277	318	364	1,243
Nolato Industrial		2009	206	197	185	236	824
		2008	260	259	219	212	950
Group adjustments, Parent Company		2009	– 4	0	0	0	-4
		2008	– 1	0	0	0	-1
Group total		2009	606	557	653	786	2 602
		2008	690	694	693	747	2,824
Operating income (EBITA) per business area (SEK millions)			Q1	Q2	Q3	Q4	Full year
Nolato Medical		2009	24	23	20	22	89
	EBITA margin (%)		13.5	13.0	12.6	12.4	12.9
		2008	21	21	20	27	89
	EBITA margin (%)		14.3	13.3	12.8	15.8	14.1
Nolato Telecom		2009	0	32	24	30	86
	EBITA margin (%)		0.0	17.5	7.8	8.1	7.9
		2008	25	22	35	32	114
	EBITA margin (%)		8.8	7.9	11.0	8.8	9.2
Nolato Industrial		2009	– 1	– 7	9	18	19
	EBITA margin (%)		– 0.5	– 3.6	4.9	7.6	2.3
		2008	19	21	15	0	55
	EBITA margin (%)		7.3	8.1	6.8	0.0	5.8
Group adjustments, Parent Company		2009	– 7	– 9	– 5	– 7	– 28
		2008	– 6	– 3	– 6	– 3	– 18
Group total		2009	16	39	48	63	166
	EBITA margin (%)		2.6	7.0	7.4	8.0	6.4
		2008	59	61	64	56	240
	EBITA margin (%)		8.6	8.8	9.2	7.5	8.5
Depreciation/amortisation per business area (SEK millions)			Q1	Q2	Q3	Q4	Full year
Nolato Medical		2009	11	11	11	12	45
		2008	10	10	10	11	41
Nolato Telecom		2009	18	16	15	40	89
		2008	19	20	16	17	72
Nolato Industrial		2009	13	13	12	13	51
		2008	14	14	13	13	54
Group total		2009	42	40	38	65	185
		2008	43	44	39	41	167

■ Group financial highlights

	Q4 2009	Q4 2008	Full year 2009	Full year 2008
Net sales (SEK millions)	786	747	2,602	2,824
Sales growth (%)	5	18	– 8	17
Percentage of sales outside Sweden (%)	77	70	73	68
Operating income (EBITDA) (SEK millions)	126	95	343	399
Operating income (EBITA) (SEK millions)	63	56	166	240
EBITA margin (%)	8.0	7.5	6.4	8.5
Income after financial items (SEK millions)	58	47	148	216
Profit margin (%)	7.4	6.3	5.7	7.6
Net income (SEK millions)	57	46	123	178
Return on total capital (%)	—	—	7.5	11.8
Return on capital employed (%)	—	—	12.1	18.4
Return on operating capital (%)	—	—	13.9	19.7
Return on shareholders' equity (%)	—	—	11.5	18.4
Equity/assets ratio (%)	—	—	51	50
Debt/equity ratio (%)	—	—	20	25
Interest coverage ratio (times)	18	17	14	11
Net investments affecting cash flow, excl. acq. and disposals (SEK millions)	38	28	118	155
Cash flow after investments, excl. acq. and disposals (SEK millions)	79	152	139	296
Net debt (SEK millions)	—	—	40	95
Earnings per share before and after dilution (SEK)	2.17	1.75	4.68	6.77
Adjusted earnings per share (SEK)	2.24	1.82	4.90	6.99
Cash flow per share (SEK)	3.00	6.23	5.28	11.71
Shareholders' equity per share (SEK)	—	—	41	40
Number of shares at the end of the period (thousands)	26,307	26,307	26,307	26,307
Average number of shares (thousands)	26,307	26,307	26,307	26,307
Average number of employees	—	—	4,308	4,531

Definitions

Adjusted earnings per share

Net income, excluding amortisation of intangible assets arising from acquisitions, divided by the average number of shares.

Cash flow per share

Cash flow before financing activities, divided by average number of shares.

Debt/equity ratio

Interest-bearing liabilities and provisions divided by shareholders' equity.

EBITA margin

Operating income (EBITA) as a percentage of net sales.

Earnings per share

Net income, divided by average number of shares.

Equity/assets ratio

Shareholders' equity as a percentage of total capital in the balance sheet.

Interest coverage ratio

Income after financial items plus financial expenses, divided by financial expenses.

Net debt

Interest-bearing liabilities and provisions less interest-bearing assets.

Operating income (EBITDA)

Earnings before interest, taxes and depreciation/amortisation.

Operating income (EBITA)

Earnings before interest, taxes and amortisation of intangible assets arising from acquisitions.

Operating income (EBIT)

Income before tax, financial income and expenses.

Profit margin

Income after financial items as a percentage of net sales.

Return on total capital

Income after financial items plus financial expenses as a percentage of average total capital in the balance sheet.

Return on capital employed

Income after financial items plus financial expenses as a percentage of average capital employed. Capital employed consists of total capital less non-interest-bearing liabilities and provisions.

Return on operating capital

Operating income as a percentage of average operating capital. Operating capital consists of total capital less non-interest-bearing liabilities and provisions, less interest-bearing assets.

Return on shareholders' equity

Net income as a percentage of average shareholders' equity.

■ Parent Company income statements

SEK millions	Q4 2009	Q4 2008	Full year 2009	Full year 2008
Net sales	4	3	21	22
Selling expenses	– 3	– 4	– 11	– 9
Administrative expenses	– 16	– 8	– 42	– 39
Other operating expenses	– 19	0	– 24	0
Operating income	– 34	– 9	– 56	– 26
Result from shares in Group companies	—	– 91	79	– 91
Financial income	2	3	7	12
Financial expenses	0	– 3	– 4	– 17
Income after financial items	– 32	– 100	26	– 122
Appropriations	– 21	– 42	– 21	– 42
Tax	13	12	19	18
Net income	– 40	– 130	24	– 146
Depreciation/amortisation	0	0	0	0

■ Parent Company balance sheets (summary)

SEK millions	31/12/2009	31/12/2008
Assets
Financial fixed assets	949	839
Deferred tax assets	4	2
Total fixed assets	953	841
Other receivables	201	245
Cash and bank	74	53
Total current assets	275	298
Total assets	1,228	1,139
Shareholders' equity and liabilities
Shareholders' equity	759	713
Untaxed reserves	93	72
Other provisions	2	2
Long-term liabilities	18	21
Current liabilities	356	331
Total shareholders' equity and liabilities	1,228	1,139
Collateral pledged	—	—
Contingent liabilities	99	144

Transactions with related parties:

Related party	Period	Services sold	Services purchased	Interest income	Interest expenses	Result from shares in Group companies	Rec. from related parties on the bal. sheet date	Liab. to related parties on the bal. sheet date
Subsidiary	2009	21	– 15	7	– 1	79	444	235
Subsidiary	2008	22	– 13	11	– 5	– 91	378	181

None of the company's Board members or senior executives currently has, or has previously had, any direct or indirect involvement in any business transaction with the company which is, or was, of an unusual character in terms of its conditions. Nor has the Group issued any loans, pledged any guarantees or entered into any surety arrangements for any of the company's Board members or senior executives.

Nolato AB, SE-260 93 Torekov, Sweden • Tel. +46 431 442290 • Fax +46 431 442291 Corporate identity number 556080-4592 • E-mail info@nolato.se • Website www.nolato.com