YEAR-END REPORT 2022 January - December

Challenging operating environment continues

Fourth quarter of 2022 in brief

Sales totaled SEK 2,364 million (3,146)
Operating profit (EBITA) was SEK 163 million (336)
EBITA margin of 6.9% (10.7)
Profit after tax was SEK 105 million (271), excl. non-recurring items*
Diluted earnings per share were SEK 0.39 (1.01), excl. non-recurring items
Cash flow after investments amounted to SEK −188 million (−87)

Full year 2022 in brief

Sales totaled SEK 10,774 million (11,610)
Operating profit (EBITA) was SEK 908 million (1,319 excl. non-recurring items)
Diluted earnings per share were SEK 2.44 (3.70), excl. non-recurring items
Cash flow after investments amounted to SEK 8 million (446)
were SEK 708 million (51) • The equity/assets ratio was 54% (47) and net financial liabilities
The Board proposes an unchanged dividend of SEK 1.90 (1.90) per share

^* Net financial income and expense include positive non-recurring items of SEK 41 million (115), which arose from the revaluation of contingent consideration concerning the acquisition of GW Plastics. See pages 4 and 5 for more details on non-recurring items.

Comments from the President and CEO - Intensified efforts

to cope with challenging operating environment

Adjusted for currency, net sales decreased by 34% in the fourth quarter to SEK 2,364 million, with an EBITA margin of 6.9%. The decrease in sales was due to Integrated Solutions, whose VHP production volumes gradually declined during the year as a result of Russia's invasion of Ukraine. It was also due to the customer's change in sourcing strategy. In addition, the VHP business had to halt production from the start of the fourth quarter until 5 December as a result of licensing in China.

Christer Wahlquist, President and CEO, Nolato AB

Challenging external factors and general cost inflation of materials, labor and energy resulted in lower margins for Nolato during the year. This was despite continual efforts to pass on cost increases to customers and to make internal processes more efficient. We have also seen a continued component shortage, particularly in automotive but in other areas too, which has impacted the demand our customers are experiencing. This is resulting in fluctuating production planning and consequent lower production efficiency for Nolato, which is adversely impacting the margin. We also expect weaker industrial activity in general going forward, which primarily affects our Industrial Solutions business area. Adjusted for currency, Medical Solutions sales increased by 9%, due in particular to the charging on of cost increases and healthy growth in the surgery segment.

Overall, we have a diversified customer portfolio and a good financial position, allowing us to continue to focus on advancing our position as a global strategic partner with production on three continents. We have begun intensified efforts to further reduce our total costs and boost our efficiency to improve our margins.

Group highlights

		Q4	Q4	Full year	Full year
SEK million unless otherwise specified	Note	2022	2021	2022	2021
Net sales	1	2,364	3,146	10,774	11,610
Operating profit (EBITDA)		296	449	1,411	1,805
Operating profit (EBITA)		163	336	908	1,369
EBITA margin, %		6.9	10.7	8.4	11.8
Operating profit (EBIT)	2	152	326	867	1,333
Profit after financial income and expense	2	186	433	875	1,401
Profit after tax		146	386	697	1,160
Diluted earnings per share, SEK	3	0.54	1.43	2.59	4.32
Diluted adjusted earnings per share, SEK	3	0.57	1.46	2.70	4.42
Cash flow after investments, excluding acquisitions and disposals		– 188	– 87	8	446
Net investments affecting cash flow, excluding acquisitions and disposals		99	205	451	782
Cash conversion, %		—	—	1	35
Return on capital employed, %		—	—	12.8	22.8
Return on shareholders' equity, %		—	—	13.6	28.0
Equity/assets ratio, %		—	—	54	47
Net financial liabilities, excluding pension- & lease liabilities		—	—	– 708	– 51

See definitions of IFRS measures and alternative performance measures on page 22.

Including a non-recurring item of SEK 41 million in profit after financial items in Q4-2022 and full year 2022, which also impacted the profit after tax.

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

Fourth quarter 2022

Sales totaled SEK 2,364 million (3,146), which, adjusted for currency, was a 34% decrease
Strong growth for Medical Solutions, while lower volumes had a negative impact on the other business areas
Operating profit (EBITA) was SEK 163 million (336)
• Sales EBITA margin of 6.9% (10.7), which was impacted by lower volumes and cost inflation
Cash flow after investments totaled SEK −188 million (−87) because of increased working capital requirements

Sales

Consolidated sales totaled SEK 2,364 million (3,146). Adjusted for currency, this was a decrease of 34%.

Medical Solutions sales amounted to SEK 1,312 million (1,063); adjusted for currency, sales increased by 9%. The surgery area saw good growth in the quarter, while in vitro diagnostics (IVD) volumes were lower due to pandemic-related inventory adjustments, which continued to affect the fourth quarter.

Integrated Solutions sales totaled SEK 407 million (1,476). Adjusted for currency, this was a decrease of some 78%. Licensing due to new regulatory requirements for Vaporiser Heating Products (VHP) in China resulted in sales being halted in the quarter until December 5 (see also relevant press releases). Demand in Eastern Europe has been adversely affected following Russia's invasion of Ukraine. Nolato believes that the VHP segment will continue to be impacted by the situation in Eastern Europe and the effects of dual sourcing. Volumes in the first quarter of 2023 are also consequently expected to remain at similar levels as in the fourth quarter. The EMC segment is continuing to perform well, with sales increasing to SEK 165 million (143).

Industrial Solutions sales amounted to SEK 651 million (609); adjusted for currency, sales decreased by 2%. Disruptions to the supply chain at the start of the quarter had an impact, leading to lower volumes, primarily in automotive, while the charging on of cost increases made a positive contribution to sales. Demand for products supplied to areas in the consumer discretionary sector was slightly lower, and this is expected to continue in 2023, due to worse economic conditions and more restrained consumer spending.

Strong growth in Medical Solutions, but lower volumes adversely impacted other business areas

• Operating profit (EBITA)

• EBITA margin

The Group's operating profit (EBITA) was SEK 163 million (336).

Operating profit (EBITA) increased to SEK 126 million (112) for Medical Solutions, while for Integrated Solutions it declined significantly to SEK 25 million (192), and for Industrial Solutions it decreased to SEK 18 million (38).

The EBITA margin for Medical Solutions was 9.6% (10.5). The combination of a change in the sales mix, with a greater proportion from the surgery area and a lower proportion from IVD, had a negative impact on the margin. Previous investments in capacity are still not being fully used and are consequently having a negative impact on the margin. For Integrated Solutions, the margin was 6.1% (13.0). Lower VHP volumes had an adverse effect. The EBITA margin for Industrial Solutions was 2.8% (6.2). A component shortage, primarily in automotive at the beginning of the quarter, has impacted customer demand and led to fluctuating production planning for Nolato. This has led to lower production efficiency, which, together with lower volumes and the inflationary effects of labor and energy costs, has had an adverse impact on the margin. Overall, the Group's EBITA margin was 6.9% (10.7).

Operating profit (EBIT) was SEK 152 million (326).

Operating profit after net financial income and expense decreased to SEK 145 million (318), excluding non-recurring items. Including non-recurring items, profit amounted to SEK 186 million (433). Net financial income and expense include positive non-recurring items of SEK 41 million (115), which arose from the revaluation of contingent consideration concerning the acquisition of GW Plastics.

Profit after tax was SEK 105 million (271), excluding non-recurring items. Including non-recurring items, profit amounted to SEK 146 million (386). Diluted earnings per share were SEK 0.39 (1.01), excluding non-recurring items. Including non-recurring items, earnings per share amounted to SEK 0.54 (1.43). Adjusted earnings per share after dilution but excluding amortization of intangible assets arising from acquisitions amounted to SEK 0.42 (1.04), excluding non-recurring items.

Profit • Adjusted diluted earnings per share

	Sales	Sales	EBITA	EBITA	EBITA marg.	EBITA marg.
SEK million	Q4/2022	Q4/2021	Q4/2022	Q4/2021	Q4/2022	Q4/2021
Medical Solutions	1,312	1,063	126	112	9.6%	10.5%
Integrated Solutions	407	1,476	25	192	6.1%	13.0%
Industrial Solutions	651	609	18	38	2.8%	6.2%
Intra-Group adj., Parent Co	– 6	– 2	– 6	– 6	—	—
Group total	2,364	3,146	163	336	6.9%	10.7%

Sales, operating profit (EBITA) and EBITA margin by business area

Operating profit (EBITA): Earnings before financial income and expense, taxes and amortization of intangible assets arising from acquisitions.

Full year 2022

Consolidated sales totaled SEK 10,774 million (11,610). Adjusted for currency, this was a decrease of 17%.

Sales for Medical Solutions rose by 19% to SEK 4,859 million (4,067), while for Integrated Solutions they decreased by 37% to SEK 3,311 million (5,226) and increased for Industrial Solutions by 13% to SEK 2,618 million (2,324).

The Group's operating profit (EBITA) was SEK 908 million (SEK 1,319 million excluding non-recurring items). The previous year included a positive nonrecurring item of SEK 50 million, which related to a remitted loan. Overall, the Group's EBITA margin was 8.4% (11.4% excluding non-recurring items).

Operating profit (EBIT) amounted to SEK 867 million (SEK 1,283 million excluding non-recurring items).

Profit after net financial income and expense was SEK 834 million (1,236), excluding non-recurring items. Including non-recurring items, profit amounted to SEK 875 million (1,401).

Profit after tax amounted to SEK 656 million (995), excluding non-recurring items. Including non-recurring items, profit amounted to SEK 697 million (1,160). Diluted earnings per share were SEK 2.44 (3.70), excluding nonrecurring items. Including non-recurring items, diluted earnings per share were SEK 2.59 (4.32). Adjusted earnings per share after dilution but excluding amortization of intangible assets arising from acquisitions amounted to SEK 2.55 (3.81), excluding non-recurring items. The effective tax rate was 20.3% (17.2). Excluding non-recurring items, the tax rate was 21.3% (19.5).

The return on capital employed was 12.8% (22.8). Return on equity was 13.6% (28.0). Cash conversion was 1% (35).

Asia 13%

Other Europe 52%

Medical Solutions •

Sales and profit full year (SEK million)	2022	2021
Sales	4,859	4,067
Operating profit (EBITA)	457	457
EBITA margin (%)	9.4	11.2
Operating profit (EBIT)	427	430

Medical Solutions sales amounted to SEK 4,859 million (4,067); adjusted for currency, sales increased by 8%. The charging on of higher costs contributed to the increase in sales. The surgery area saw good growth, while in vitro diagnostics (IVD) volumes were lower due to pandemic-related inventory adjustments, which have continued to have an impact.

Operating profit (EBITA) was unchanged at SEK 457 million (457).

The EBITA margin decreased to 9.4% (11.2). The combination of a change in the sales mix, with a greater proportion from the surgery area and a lower proportion from IVD, had a negative impact on the margin. A time lag in the charging on of cost increases also had an effect. Previous investments in capacity are still not being fully used and are consequently having a negative impact on the margin.

Medical Solutions sales

• Medical Solutions operating profit (EBITA) & EBITA margin %

Integrated Solutions

Sales and profit full year (SEK million)
Sales	3,311	5,226
Operating profit (EBITA)	334	671
EBITA margin (%)	10.1	12.8
Operating profit (EBIT)	333	670

Integrated Solutions sales totaled SEK 3,311 million (5,226). Adjusted for currency, sales decreased by some 46%. Demand for Vaporiser Heating Products (VHP) in Eastern Europe has been adversely affected following Russia's invasion of Ukraine. In addition, from the beginning of the fourth quarter until December 5 Nolato did not manufacture any VHP products in China because of new regulatory requirements relating to VHP products established by Chinese authorities. Nolato believes that the VHP segment will continue to be impacted by the situation in Eastern Europe and the effects of dual sourcing. Volumes in the first quarter of 2023 are also consequently expected to remain at similar levels as in the fourth quarter. The EMC business is continuing to perform well.

Operating profit (EBITA) was SEK 334 million (671).

The EBITA margin was 10.1% (12.8). Lower VHP volumes had an adverse effect.

2022 2021 Integrated Solutions sales

• Integrated Solutions operating profit (EBITA) & EBITA margin %

Industrial Solutions •

Sales and profit full year (SEK million)	2022	2021
Sales	2,618	2,324
Operating profit (EBITA)	128	208
EBITA margin (%)	4.9	9.0
Operating profit (EBIT)	118	200

Industrial Solutions sales amounted to SEK 2,618 million (2,324); adjusted for currency, sales increased by 6%. Volumes decreased somewhat compared with the same period last year, while the charging on of cost increases contributed positively to sales. Demand was stable in most market areas, but for products supplied to areas in the consumer discretionary sector it was slightly lower in the fourth quarter, and this is expected to continue in 2023, due to worse economic conditions and more restrained consumer spending.

Operating profit (EBITA) was SEK 128 million (208).

The EBITA margin decreased to 4.9% (9.0). A component shortage, particularly in automotive but in other areas too, has impacted customer demand and led to fluctuating production planning for Nolato. This has resulted in lower production efficiency, which, together with a time lag in the charging on of cost increases, has adversely affected the margin.

Industrial Solutions sales

• Industrial Solutions operating profit (EBITA) & EBITA margin %

Cash flow •

Cash flow after investments in the fourth quarter amounted to SEK −188 million (−87). Tied-up working capital increased by SEK 277 million (195) in the quarter. Net investments affecting cash flow decreased in the quarter to SEK 99 million (205).

For the full year 2022, cash flow after investments was SEK 8 million (446), excluding contingent consideration for acquisition. Cash flow from operating activities before changes in working capital decreased to SEK 1,021 million (1,402), mainly because of lower profit. Working capital requirements increased by SEK 615 million (174), which impacts cash flow for the year. Within this part, payment of contingent consideration for the acquisition of GW Plastics, Inc., had a negative impact of SEK 53 million, but in particular, the use of supplier finance for trade receivables has decreased. The low deliveries of VHP products towards the end of the year, which was unplanned, further increased tied-up capital. Net investments affecting cash flow decreased to SEK 451 million (782). Cash conversion for the last 12 months was 1% (35% for the 2021 calendar year). A dividend totaling SEK 512 million (428) was paid to shareholders in the second quarter.

Interest-bearing assets decreased to SEK 1,011 million (1,448), and interestbearing financial liabilities rose to SEK 1,719 million (1,499). Net financial liabilities consequently totaled SEK 708 million (51). The dividend payment and currency effects have increased net financial liabilities. There are also interest-bearing pension liabilities of SEK 173 million (247) and interestbearing lease liabilities of SEK 314 million (295). Shareholders' equity rose to SEK 5,392 million (4,768). The equity/assets ratio was 54% (47).

Cash flow after investments

Excluding acquisitions and disposals

Financial position • Net financial liabilities & equity/assets ratio %

Financial position

SEK million	31/12/2022	31/12/2021
Interest-bearing liabilities, credit institutions	– 1,719	– 1,499
Cash and bank	1,011	1,448
Net financial liabilities	– 708	– 51
Interest-bearing pension liabilities	– 173	– 247
Net financial liabilities, including pension liabilities	– 881	– 298
Lease liabilities	– 314	– 295
Net financial liabilities, including pension- & lease liabilities	– 1,195	– 593
Working capital	1,108	480
As a percentage of sales (average) (%)	7.4	3.7
Capital employed	7,597	6,809
Return on capital employed (average) (%)	12.8	22.8
Shareholders' equity	5,392	4,768
Return on shareholders' equity (average) (%)	13.6	28.0

Consolidated performance analysis

		Q4	Q4	Full year	Full year
SEK million	Note	2022	2021	2022	2021
Net sales	1	2,364	3,146	10,774	11,610
Gross profit excluding depreciation/amortization		439	582	1,924	2,250
As a percentage of net sales		18.6	18.5	17.9	19.4
Costs		– 143	– 133	– 513	– 445
As a percentage of net sales		6.0	4.2	4.8	3.8
Operating profit (EBITDA)		296	449	1,411	1,805
As a percentage of net sales		12.5	14.3	13.1	15.5
Depreciation and amortization		– 133	– 113	– 503	– 436
Operating profit (EBITA)		163	336	908	1,369
As a percentage of net sales		6.9	10.7	8.4	11.8
Amortization of intangible assets arising from acquisitions		– 11	– 10	– 41	– 36
Operating profit (EBIT)	2	152	326	867	1,333
Financial income and expense	2	34	107	8	68
Profit after financial income and expense	2	186	433	875	1,401
Tax		– 40	– 47	– 178	– 241
As a percent of profit after financial income and expense		21.5	10.9	20.3	17.2
Profit after tax		146	386	697	1,160

Personnel • Contact:

The average number of employees in 2022 was 6,627 people (8,669). The decrease in the number of employees is mainly attributable to Integrated Solutions' operations in China and, to a lesser extent, Industrial Solutions' operations in Europe.

Significant risks and uncertainty factors

The Group and parent company's business risks and risk management, as well as the management of financial risks, are described on pages 59–61 and in Note 30 on pages 89–92 of the 2021 annual accounts.

High inflation, geopolitical effects of the invasion of Ukraine and Covid-19 naturally also affect Nolato's operations and its customers. At present, it is not possible to predict the duration or scope and thus not quantify these effects for the Group.

No other events of material significance occurred in the period that materially affect or change these descriptions of the Group and parent company's risks and their management.

Seasonal effects

Nolato does not experience any significant seasonal variations. However, in the third quarter sales within Industrial Solutions, and to a certain degree Medical Solutions, can be negatively affected by the fact that the holiday period falls in this quarter both for Nolato and its customers.

Events after the balance sheet date

No significant events have occurred since the end of the period, but high inflation, geopolitical impact from the invasion of Ukraine and the Covid-19 pandemic are, of course, also affecting Nolato's business and its customers. It is not currently possible to foresee the extent of this or how long it is likely to continue, nor is it possible to quantify its effects on the Group.

Christer Wahlquist, President and CEO, tel. +46705 804848.
Per-Ola Holmström, CFO, tel. +46705 763340.

• Webcast conference call on 8 February:

In connection with the year-end report, Nolato will hold a webcast conference call in English at 2:45 p.m. CET. Nolato will be represented by President and CEO Christer Wahlquist and CFO Per-Ola Holmström, who will present the year-end report and answer questions. Information regarding telephone numbers and the website is available at

https://financialhearings.com/event/

The presentation will be available at www.nolato.com/ir after publication of the year-end report. The webcast will be available at the same address after the live broadcast.

Dividend

At the Annual General Meeting, the Board of Directors and the President and CEO will propose an unchanged dividend of SEK 1.90 per share (1.90), which corresponds to SEK 512 million (512). The pay-out ratio is 78% (51), excluding non-recurring items. The dividend yield was 3.5% on the share price as of December 31, 2022. Nolato's dividend policy is to propose a dividend that exceeds 50% of profit after tax, taking account of Nolato's longterm development opportunities, financial position and investment needs.

Ownership and legal structure

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

Nolato's Class B shares are listed on Nasdaq Stockholm in the Large Cap segment, where they are included in the Industrials sector.

There were 17,142 shareholders as of December 31. The largest shareholders are the Jorlén family, the Boström family and the Hamrin family with 9% each, Första AP-fonden and Lannebo Funds with 7% each, and Nordea Funds and Andra AP-fonden with 4% each of capital.

The Parent Company

For the parent company, which has no operating activities, sales amounted to SEK 65 million (69). Profit after financial income and expense was SEK 184 million (687) and was mainly affected by lower profit from participations in Group companies (dividends from subsidiaries) and higher financial costs.

Contingent liabilities totaled SEK 315 million (293).

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 interim report for the Group has been prepared in accordance with IAS 34 Interim Financial Reporting and applicable provisions of the Swedish Annual Accounts Act. Publication of this interim report is subject to the Swedish Securities Market Act.

The consolidated accounts have been prepared according to the same principles as in the most recent annual accounts, as set out in the Annual Report 2021.

IASB and the IFRS Interpretations Committee have issued new standards and statements that apply to financial years starting January 1, 2022, or later. There are no plans for the early application of new or amended standards for future application. None of the standards or interpretations published by IASB are expected to have a material impact on the Group or Parent Company's financial statements.

The interim report for the Parent Company has been prepared in accordance with Chapter 9 of the Swedish Annual Accounts Act.

Prior to publication this information constituted inside information that Nolato AB is obliged to publish pursuant to the EU Market Abuse Regulation. The information was issued for publication by the above contact persons on February 8, 2023 at 2 p.m. CET.

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

Annual General Meeting

The Annual General Meeting will be held on May 3, 2023. The Nomination Committee proposes the re-election of the Chairman of the Board and other Board members. Shareholders who would like to submit proposals to the Nomination Committee can contact the chairman of the Nomination Committee, Henrik Jorlén, by email at [email protected] or by mail at Kommendörsgatan 4, 269 77 Torekov, Sweden.

Financial information schedule

Three-month interim report 2023: 3 May 2023
2023 Annual General Meeting: 3 May 2023
Six-month interim report 2023: 20 July 2023
Nine-month interim report 2023: 26 October 2023
2023 year-end report: 6 February 2024

Torekov February 8, 2023 Nolato AB (publ) Nolato's Board of Directors

Nolato's business

Nolato is a global, advanced high-tech cooperation partner and manufacturer of polymer products and systems for leading customers in well-defined market areas such as medical technology, pharmaceuticals, consumer electronics, telecom, automotive, hygiene and other selected industrial sectors.

With its many years of experience, in-depth materials and processes expertise, early involvement in customer projects, advanced project management and detailed knowledge of each customer's specific requirements, Nolato is an effective and innovative partner.

Nolato's business model

Our business model is based on three decentralised business areas, which with their own decision-making and shared ambitions endeavour to fulfil our vision and financial targets.

The sharing of experience between our business areas, leading-edge technology, wide-ranging development and design know-how, advanced project management and efficient production allow us to establish long-term, innovative cooperation with our customers and partners and generate added value for both them and our shareholders.

Our shared values of being professional, well organised and responsible are reflected in everything we do.

Nolato's strategies

Early involvement in customers' development processes
Close and long-term collaboration/Partnerships with our customers
Innovative, integrated and high-tech solutions
High productivity/Lean manufacturing
Advancing up the value chain/Greater added value
Global presence
Responsible business practice

Nolato is a Swedish group with operations in Europe, Asia and North America.

We develop and manufacture products in polymer materials such as plastic, silicone and TPE for leading customers within medical technology, pharmaceuticals, consumer electronics, telecom, automotive, hygiene and other selected industrial sectors.

Nolato's shares are listed on Nasdaq Stockholm in the Large Cap segment, where they are included in the Industrials sector.

www.nolato.com

Consolidated income statement (summary)
-----------------------------------------	--

		Q4	Q4	Full year	Full year
SEK million	Note	2022	2021	2022	2021
Net sales	1	2,364	3,146	10,774	11,610
Cost of goods sold		– 2,056	– 2,678	– 9,346	– 9,793
Gross profit		308	468	1,428	1,817
Other operating income		—	15	41	70
Selling expenses		– 56	– 47	– 213	– 178
Administrative expenses		– 100	– 97	– 389	– 357
Other operating expenses		—	– 13	—	– 19
		– 156	– 142	– 561	– 484
Operating profit	2	152	326	867	1,333

Financial income and expense	2	34	107	8	68
Profit after financial income and expense	2	186	433	875	1,401
Tax		– 40	– 47	– 178	– 241
Profit after tax		146	386	697	1,160
All earnings are attributable to the Parent Co.'s shareholders
Depreciation/amortization reg. non-current assets		144	123	544	472
Basic earnings per share, SEK	3	0.54	1.43	2.58	4.32
Diluted earnings per share, SEK	3	0.54	1.43	2.59	4.32
Number of shares at the end of the period, before dilution		269,377,080	269,377,080	269,377,080	269,377,080
Number of shares at the end of the period, after dilution		269,377,080	269,379,505	269,377,080	269,379,505
Average number of shares, before dilution		269,377,080	269,329,580	269,377,080	268,491,580
Average number of shares, after dilution		269,377,080	269,383,190	269,377,080	268,779,516

At the end of the period, the Group had two incentive programmes: Incentive Programme 2019/2024 and Incentive Programme 2022/2028. For more information please see Note 3 Earnings per share on page 16.

Consolidated comprehensive income

	Q4	Q4	Full year	Full year
SEK million	2022	2021	2022	2021
Profit after tax	146	386	697	1,160

Other comprehensive income
Items that cannot be transferred to profit for the period
Revaluations of defined benefit pension plans	6	19	102	41
Tax attributable to items that cannot be transferred to profit for the period	– 2	– 3	– 17	– 6
	4	16	85	35
Items that have been converted or can be converted into profit for the period
Translation differences for the period on translation of foreign operations	– 172	78	344	195
Changes in the fair value of cash flow hedges for the period	12	—	3	9
Tax attributable to changes in the fair value of cash flow hedges	– 4	—	– 1	– 2
	– 164	78	346	202
Other comprehensive income, net of tax	– 160	94	431	237

Total comprehensive income for the period attributable to the Parent Co.'s shareh.	– 14	480	1,128	1,397

Financial instruments are measured at fair value in the statement of financial position, pursuant to measurement hierarchy Level 2.

Consolidated balance sheet (summary)

SEK million	31/12/2022	31/12/2021
Assets
Non-current assets
Intangible non-current assets	2,472	2,234
Property, plant and equipment	3,174	2,868
Non-current financial assets	2	2
Other non-current receivables	1	2
Deferred tax assets	87	69
Total fixed assets	5,736	5,175

Current assets
Inventories	1,283	1,340
Accounts receivable	1,522	1,574
Other current assets2)	455 1,011	518 1,448
Cash and bank	4,271	4,880
Total current assets
Total assets	10,007	10,055

Shareholders' equity and liabilities
Shareholders' equity	5,392	4,768
Long-term liabilities and provisions1)	1,945	1,921
Deferred tax liabilities1)	294	254
Current liabilities and provisions1) 3)	2,376	3,112
Total liabilities and provisions	4,615	5,287
Total shareholders' equity and liabilities	10,007	10,055
1) Interest-bearing/non-interest-bearing liabilities and provisions:
Interest-bearing liabilities and provisions	2,206	2,041
Non-interest-bearing liabilities and provisions	2,409	3,246
Total liabilities and provisions	4,615	5,287
Financial instruments are measured at fair value in the statement of financial position,

pursuant to measurement hierarchy Level 2. 2) Derivative assets are included in other current assets at

3) Derivative liabilities are included in current liabilities and provisions at 10 5

4	1

Changes in consolidated shareholders' equity (summary)

	Full year	Full year
SEK million	2022	2021
Shareholders' equity at the beginning of the period	4,768	3,699
Total comprehensive income for the period	1,128	1,397
Dividends	– 512	– 428
Share warrants included in incentive programmes	8	3
Exercise of warrants included in incentive programmes	—	97
Shareholders' equity at the end of period attributable to Parent Co's shareholders	5,392	4,768

At the end of the period, the Group had two incentive programmes: Incentive Programme 2019/2024 and Incentive Programme 2022/2028. In Incentive Programme 2019/2024, Series 2020/2023 has redemptions from 01/05/2023 to 15/12/2023 and Series 2021/2024 has redemptions from 01/05/2024 to 15/12/2024. The subscription price is SEK 92.88 for Series 2020/2023 and SEK 140.20 for Series 2021/2024. In Incentive Programme 2022/2028, Series 2022/2026 has redemptions from 15/12/2025 to 15/06/2026, Series 2023/2027 has redemptions from 15/12/2026 to 15/06/2027 and Series 2024/2028 has redemptions from 15/12/2027 to 15/06/2028. The subscription price is SEK 57.80 for Series 2022/2026. The programmes have been taken into account in calculating the number of shares after dilution. Upon full subscription, the programmes provide a maximum of 7,549,500 new class B shares.

Consolidated cash flow statement (summary)

	Q4	Q4	Full year	Full year
SEK million	2022	2021	2022	2021
Cash flow from operating activities before changes in working capital	188	313	1,021	1,402
Changes in working capital	– 277	– 195	– 615	– 174
Cash flow from operating activities	– 89	118	406	1,228

Cash flow from investment activities	– 99	– 205	– 451	– 782
Cash flow before financing activities	– 188	– 87	– 45	446

Cash flow from financing activities	52	77	– 487	– 634
Cash flow for the period	– 136	– 10	– 532	– 188

Cash and cash equivalents at the beginning of the period	1,193	1,400	1,448	1,487
Exchange rate difference in liquid assets	– 46	58	95	149
Cash and cash equivalents at the end of the period	1,011	1,448	1,011	1,448

Note 1 Revenue

	Full year - 2022				Full year - 2021
		Med.	Integr.	Indust.		Med.	Integr.	Indust.
SEK million	Sum	Sol.	Sol.	Sol.	Sum	Sol.	Sol.	Sol.
Sweden	963	138	35	790	914	117	29	768
Other Europe	5,657	2,317	1,953	1,387	5,839	1,998	2,638	1,203
North America	2,622	2,085	178	359	2,083	1,668	154	261
Asia	1,371	166	1,137	68	2,588	153	2,352	83
Rest of world	175	153	8	14	193	131	53	9
Elimination internal sales	– 14				– 7
Total revenues from customer contracts	10,774	4,859	3,311	2,618	11,610	4,067	5,226	2,324

The above table essentially covers products transferred at a specific date.

For the year 2022, the Group recognized decreased provision of impaired trade receivables of SEK 2 million. Impairment losses are recognized in the cost of goods sold.

Note 2 Reconciliation of consolidated income before tax

	Full year	Full year
SEK million	2022	2021
Operating profit (EBIT)
Medical Solutions	427	430
Integrated Solutions	333	670
Industrial Solutions	118	200
Group adjustments, Parent Company	– 11	33
Consolidated operating profit (EBIT)	867	1,333
Financial income and expense (not distributed by business areas)	8	68
Consolidated profit before tax	875	1,401

Including a non-recurring item of SEK 41 million in financial income and expense in Q4-2022 and full year 2022. The non-recurring items have been recognised at Group level and has therefore not affected the earnings of the business areas.

Including a non-recurring item of SEK 50 million in operating profit for the full year 2021 and SEK 115 million in financial income and expense in Q4-2021 and full year 2021. The non-recurring items have been recognised at Group level and has therefore not affected the earnings of the business areas.

	Q4	Q4	Full year	Full year
SEK million	2022	2021	2022	2021
Profit after tax	146	386	697	1,160
Average number of shares, before dilution	269,377,080	269,329,580	269,377,080	268,491,580
Basic earnings per share (SEK)	0.54	1.43	2.58	4.32
Non-recurring items	– 41	– 115	– 41	– 165
Profit after tax excluding non-recurring items	105	271	656	995
Basic earnings per share excluding non-recurring items (SEK)	0.39	1.01	2.44	3.71

Dilutive shares from Series 2018/2021 incentive programme with
exercise price SEK 50.20 per share; total 1,935,000 warrants	—	23,540	—	287,451
Dilutive shares from Series 2020/2023 incentive programme with
exercise price SEK 92.88 per share; total 287,500 warrants	—	30,070	—	485
Average number of shares, after dilution	269,377,080	269,383,190	269,377,080	268,779,516
Diluted earnings per share (SEK)	0.54	1.43	2.59	4.32
Diluted earnings per share excluding non-recurring items (SEK)	0.39	1.01	2.44	3.70

Number of shares at the end of the period, before dilution	269,377,080	269,377,080	269,377,080	269,377,080
Number of shares at the end of the period, after dilution	269,377,080	269,379,505	269,377,080	269,379,505

Note 3 Earnings per share (IFRS measures/alternative performance measures)

Adjusted earnings per share (alternative performance measures)

	Q4	Q4	Full year	Full year
SEK million	2022	2021	2022	2021
Profit after tax	146	386	697	1,160
Adjusted earnings:
Amortization of intangible assets arising from acquisitions	11	10	41	36
Tax on amortization	– 3	– 2	– 9	– 7
Adjusted earnings	154	394	729	1,189
Average number of shares, before dilution	269,377,080	269,329,580	269,377,080	268,491,580
Adjusted basic earnings per share (SEK)	0.57	1.46	2.70	4.43
Non-recurring items	– 41	– 115	– 41	– 165
Adjusted earnings after tax, excluding non-recurring items	113	279	688	1,024
Adjusted basic earnings per share excluding non-recurring items (SEK)	0.42	1.04	2.55	3.81

Average number of shares, after dilution	269,377,080	269,383,190	269,377,080	268,779,516
Adjusted diluted earnings per share (SEK)	0.57	1.46	2.70	4.42
Adjusted diluted earnings per share excluding non-recurring items (SEK)	0.42	1.04	2.55	3.81

Five-year overview

IFRS measures	2022	2021	2020	2019	2018
Operating profit (EBIT) (SEK million)	867	1,333	1,048	887	941
Basic earnings per share (SEK)	2.58	4.32	3.03	2.66	2.74
Diluted earnings per share (SEK)	2.59	4.32	3.02	2.66	2.74

Alternative performance measures
Net sales (SEK million)	10,774	11,610	9,359	7,919	8,102
Operating profit (EBITA) (SEK million)	908	1,369	1,066	895	949
EBITA margin (%)	8.4	11.8	11.4	11.3	11.7
Profit after financial income and expense (SEK million)	875	1,401	1,014	857	921
Profit after tax (SEK million)	697	1,160	806	703	722
Cash flow after investments, excl. acq. and disposals (SEK million)	8	446	905	800	593
Cash conversion (%)	1	35	87	88	60
Return on capital employed (%)	12.8	22.8	20.7	23.1	29.7
Return on shareholders' equity (%)	13.6	28.0	23.9	25.5	30.4
Net financial liabilities (–) / assets (+), excl. pension- & lease liabilities (SEK million)	– 708	– 51	– 298	666	341
Equity/assets ratio (%)	54	47	43	48	50
Adjusted basic earnings per share (SEK)	2.70	4.43	3.08	2.68	2.77
Adjusted diluted earnings per share (SEK)	2.70	4.42	3.08	2.68	2.76
Dividend per share (2022 proposal) (SEK)	1.90	1.90	1.60	—	1.40
Average number of employees	6,627	8,669	6,721	5,941	6,449

Including any non-recurring items.

Quarterly data (summary)

IFRS measures	Note		Q1	Q2	Q3	Q4	Full year
Operating profit (EBIT) (SEK million)	2	2022	258	252	205	152	867
	2	2021	299	377	331	326	1,333
		2020	225	267	282	274	1,048
Basic earnings per share (SEK)	3	2022	0.75	0.71	0.59	0.54	2.58
	3	2021	0.85	1.09	0.96	1.43	4.32
		2020	0.67	0.78	0.79	0.79	3.03
Diluted earnings per share (SEK)	3	2022	0.75	0.71	0.59	0.54	2.58
	3	2021	0.84	1.08	0.95	1.43	4.32
		2020	0.67	0.78	0.79	0.79	3.02
Alternative performance measures	Note		Q1	Q2	Q3	Q4	Full year
Net sales (SEK million)	1	2022	2,879	2,905	2,626	2,364	10,774
	1	2021	2,645	2,786	3,033	3,146	11,610
		2020	2,065	2,307	2,500	2,487	9,359
Operating profit (EBITDA) (SEK million)		2022	386	386	343	296	1,411
		2021	414	492	450	449	1,805
		2020	319	360	388	389	1,456
Operating profit (EBITA) (SEK million)		2022	267	264	214	163	908
		2021	308	386	339	336	1,369
		2020	227	269	287	283	1,066
EBITA margin (%)		2022	9.3	9.1	8.1	6.9	8.4
		2021	11.6	13.9	11.2	10.7	11.8
		2020	11.0	11.7	11.5	11.4	11.4
Profit after financial income and exp. (SEK million)	2	2022	251	241	197	186	875
	2	2021	286	360	322	433	1,401
		2020	221	257	267	269	1,014
Profit after tax (SEK million)		2022	201	190	160	146	697
		2021	226	291	257	386	1,160
		2020	177	207	211	211	806
Cash flow from operating activities (SEK million)		2022	89	131	275	– 89	406
		2021	249	500	361	118	1,228
		2020	– 3	748	76	343	1,164
Cash fl. from operations per share bef. dilution (SEK)		2022	0.33	0.49	1.02	– 0.33	1.51
		2021	0.93	1.86	1.34	0.44	4.58
		2020 2022	– 0.01 – 41	2.82 71	0.29 166	1.28 – 188	4.37 8
Cash flow after investments, excluding acquisitions and disposals (SEK million)		2021	71	346	116	– 87	446
		2020	– 73	685	82	211	905
Cash flow after investments, excl. acquisitions and		2022	– 0.15	0.26	0.62	– 0.70	0.03
disposals per share before dilution (SEK)		2021	0.27	1.29	0.43	– 0.32	1.66
		2020	– 0.27	2.58	0.31	0.79	3.40
Adjusted basic earnings per share (SEK)	3	2022	0.77	0.74	0.62	0.57	2.70
	3	2021	0.87	1.11	0.98	1.46	4.43
		2020	0.67	0.78	0.81	0.82	3.08
Shareholders' equity per share, before dilution (SEK)		2022	19	19	20	20	20
		2021	15	15	16	18	18
		2020	12	13	14	14	14
Return on total capital (%)		2022	14.8	13.3	11.6	9.1	9.1
		2021	14.0	14.6	14.3	15.7	15.7
		2020	15.7	15.8	14.8	14.3	14.3

Alternative performance measures		Q1	Q2	Q3	Q4	Full year
Return on capital employed (%)	2022	21.6	19.4	16.7	12.8	12.8
	2021	20.2	21.0	20.6	22.8	22.8
	2020	23.2	23.4	21.8	20.7	20.7
Return on operating capital (%)	2022	25.3	21.8	18.3	14.4	14.4
	2021	28.0	28.5	26.8	27.1	27.1
	2020	31.2	33.1	30.9	29.2	29.2
Return on shareholders' equity (%)	2022	25.8	22.5	19.2	13.6	13.6
	2021	23.8	25.1	25.1	28.0	28.0
	2020	26.0	25.9	25.0	23.9	23.9
Closing share price Nolato B (Nasdaq Stockholm)	2022	70.00	55.00	50.85	54.65	54.65
	2021	77.80	84.20	104.70	107.90	107.90
	2020	44.94	62.80	87.30	83.20	83.20

Including a non-recurring item of SEK 41 million in profit after financial income and expense and profit after tax in Q4-2022.

Including a non-recurring item of SEK 50 million in operating profit in Q2-2021 and SEK 115 million in profit after financial income and expense and profit after tax in Q4-2021, which in total impacted the profit after tax by SEK 165 million.

Including a non-recurring item of SEK −17 million in operaƟng profit in Q3 2020 and tax effects of SEK +3 million, which impacted profit aŌer tax by SEK −14 million.

Including a non-recurring item of SEK −14 million in operaƟng profit in Q1 2020 and tax effects of SEK +3 million, which impacted profit aŌer tax by SEK −11 million.

Quarterly data business areas

Alternative performance measures
Net sales (SEK million)	Note		Q1	Q2	Q3	Q4	Full year
Medical Solutions	1	2022	1,088	1,214	1,245	1,312	4,859
	1	2021	1,006	1,021	977	1,063	4,067
		2020	642	700	796	951	3,089
Integrated Solutions	1	2022	1,140	1,019	745	407	3,311
	1	2021	1,045	1,186	1,519	1,476	5,226
		2020	854	1,149	1,158	907	4,068
Industrial Solutions	1	2022	653	676	638	651	2,618
	1	2021	595	580	540	609	2,324
		2020	570	459	547	629	2,205
Group adjustments, Parent Company	1	2022	– 2	– 4	– 2	– 6	– 14
	1	2021	– 1	– 1	– 3	– 2	– 7
		2020	– 1	– 1	– 1	—	– 3
Group total	1	2022	2,879	2,905	2,626	2,364	10,774
	1	2021	2,645	2,786	3,033	3,146	11,610
		2020	2,065	2,307	2,500	2,487	9,359

Alternative performance measures
Operating profit (EBITA) (SEK million)			Q1	Q2	Q3	Q4	Full year
Medical Solutions		2022	106	121	104	126	457
	EBITA margin (%)		9.7	10.0	8.4	9.6	9.4
		2021	121	124	100	112	457
	EBITA margin (%)		12.0	12.1	10.2	10.5	11.2
		2020	87	100	103	112	402
	EBITA margin (%)		13.6	14.3	12.9	11.8	13.0
Integrated Solutions		2022	123	109	77	25	334
	EBITA margin (%)		10.8	10.7	10.3	6.1	10.1
		2021	125	154	200	192	671
	EBITA margin (%)		12.0	13.0	13.2	13.0	12.8
		2020	111	166	160	111	548
	EBITA margin (%)		13.0	14.4	13.8	12.2	13.5
Industrial Solutions		2022	40	37	33	18	128
	EBITA margin (%)		6.1	5.5	5.2	2.8	4.9
		2021	66	62	42	38	208
	EBITA margin (%)		11.1	10.7	7.8	6.2	9.0
		2020	47	11	48	62	168
	EBITA margin (%)		8.2	2.4	8.8	9.9	7.6
Group adjustments, Parent Company		2022	– 2	– 3	—	– 6	– 11
		2021	– 4	46	– 3	– 6	33
		2020	– 18	– 8	– 24	– 2	– 52
Group total		2022	267	264	214	163	908
	EBITA margin (%)		9.3	9.1	8.1	6.9	8.4
		2021	308	386	339	336	1,369
	EBITA margin (%)		11.6	13.9	11.2	10.7	11.8
		2020	227	269	287	283	1,066
	EBITA margin (%)		11.0	11.7	11.5	11.4	11.4

Including a non-recurring item of SEK 50 million in operating profit in Q2 2021. The non-recurring item has been recognized at Group level and has therefore not affected the earnings of the business areas.

Including a non-recurring item of SEK −17 million in operaƟng profit in Q3 2020. The non-recurring item has been recognized at Group level and has therefore not affected the earnings of the business areas.

Including a non-recurring item of SEK −14 million in operaƟng profit in Q1 2020. The non-recurring item has been recognized at Group level and has therefore not affected the earnings of the business areas.

Depreciation/write-downs/amortization (SEK million)		Q1	Q2	Q3	Q4	Full year
Medical Solutions	2022	69	74	79	86	308
	2021	61	61	63	64	249
	2020	41	41	48	63	193
Integrated Solutions	2022	15	17	16	14	62
	2021	15	16	15	16	62
	2020	17	16	15	15	63
Industrial Solutions	2022	43	43	43	44	173
	2021	39	38	41	42	160
	2020	36	36	43	36	151
Group adjustments, Parent Company	2022	1	—	—	—	1
	2021	—	—	—	1	1
	2020	—	—	—	1	1
Group total	2022	128	134	138	144	544
	2021	115	115	119	123	472
	2020	94	93	106	115	408

Group financial highlights

	Q4	Q4	Full year	Full year
IFRS measures Note	2022	2021	2022	2021
Basic earnings per share (SEK) 3	0.54	1.43	2.58	4.32
Diluted earnings per share (SEK) 3	0.54	1.43	2.59	4.32
Alternative performance measures
Net sales (SEK million) 1	2,364	3,146	10,774	11,610
Sales growth (%)	– 25	26	– 7	24
Percentage of sales outside Sweden (%)	89	93	91	92
Operating profit (EBITDA) (SEK million)	296	449	1,411	1,805
Operating profit (EBITA) (SEK million)1)	163	336	908	1,369
EBITA margin (%)1)	6.9	10.7	8.4	11.8
Profit after financial income and expense (SEK million) 2	186	433	875	1,401
Profit margin (%)1)	7.9	13.8	8.1	12.1
Profit after tax (SEK million)	146	386	697	1,160

Return on total capital (%)1)	—	—	9.1	15.7
Return on capital employed (%)1)	—	—	12.8	22.8
Return on operating capital (%)1)	—	—	14.4	27.1
Return on shareholders' equity (%)1)	—	—	13.6	28.0

Equity/assets ratio (%)	—	—	54	47
Debt/equity (%)	—	—	41	43
Interest coverage ratio (times)	14	49	17	34
Net investments affecting cash flow, excluding acquisitions and disposals	99	205	451	782
(SEK million)
Cash flow after investments, excluding acquisitions and disposals	– 188	– 87	8	446
(SEK million)
Cash conversion (%)1)	—	—	1	35
Net financial liabilities (–) / assets (+), excl. pension- & lease liab. (SEK million)	—	—	– 708	– 51

Adjusted basic earnings per share (SEK) 3	0.57	1.46	2.70	4.43
Adjusted diluted earnings per share (SEK) 3	0.57	1.46	2.70	4.42

Cash flow from operations per share, before dilution (SEK)	– 0.33	0.44	1.51	4.58
Cash flow from operations per share, after dilution (SEK)	– 0.33	0.44	1.51	4.57
Cash flow after investments excluding acquisitions and disposals, per share, before dilution (SEK)	– 0.70	– 0.32	0.03	1.66
Cash flow after investments excluding acquisitions and disposals, per share, after dilution (SEK)	– 0.70	– 0.32	0.03	1.66

Shareholders' equity per share, before dilution (SEK)	—	—	20	18
Shareholders' equity per share, after dilution (SEK)	—	—	20	18

Average number of employees	—	—	6,627	8,669

See definitions of IFRS measures and alternative performance measures on page 22.

1) KPIs calculated as specified on pages 23 and 24.

Including a non-recurring item of SEK 41 million in profit after financial items in Q4-2022 and full year 2022, which also impacted the profit after tax.

Definitions - IFRS measures

Earnings for the period that are attributable to the parent company's owners divided by the average number of outstanding shares.

Earnings per share Operating profit (EBIT)

Earnings before financial income and expense and taxes.

Definitions - Alternative performance measures

Nolato presents certain financial measures in this report that are not defined according to IFRS. Nolato considers that these measures provide valuable supplementary information for investors and company management, as they enable an assessment of trends and the company's performance. Since not all companies calculate financial measures in the same way, these are not always comparable to measures used by other companies. These financial measures should not therefore be regarded as substitutes for measures defined according to IFRS.

Adjusted earnings per share Interest coverage ratio

Profit after tax, excluding amortization of intangible assets arising from acquisitions, divided by the average number of shares.

Average number of shares

The average basic number of shares comprises the parent bearing assets. company's weighted average number of outstanding shares during the period. After dilution, a weighted average of the shares that may be issued under the ongoing share warrant programme is added, if they are in-the-money, but only insofar as the average listed share price for the period exceeds the subscription price of the warrants.

Cash conversion Profit margin

Cash flow after investments, excl. acquisitions and disposals, divided by operating profit (EBIT). Cash flow and operating profit have been adjusted by non-recurring items, if any.

Cash flow after investments, excl. acquisitions and disposals per share

Cash flow after investing activities excl. acquisitions and disposals, divided by the average number of shares.

Cash flow from operating activities per share Return on operating capital

Cash flow from operating activities, divided by the average number of shares.

Debt/equity ratio

Interest-bearing liabilities and provisions divided by

Equity/assets ratio

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

Profit after financial income and expense, plus financial expenses, divided by financial expenses.

Net financial liabilities (–) / financial assets (+)

Interest-bearing liabilities from credit institutions less interest-

Operating profit (EBITA)

Earnings before financial income and expense, taxes and amortization of intangible assets arising from acquisitions.

Operating profit (EBITDA)

Earnings before financial income and expense, taxes and depreciation/amortization.

Profit after financial income and expense as a percentage of net sales.

Return on capital employed

Profit after financial income and expense, plus financial expenses as a percentage of average capital employed. Capital employed consists of total capital less non-interest-bearing liabilities and provisions.

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

Return on shareholders' equity

EBITA margin Return on total capital shareholders' equity. Profit after tax as a percentage of average shareholders' equity.

Operating profit (EBITA) as a percentage of net sales. Profit after financial income and expense, plus financial expenses as a percentage of average total capital in the balance sheet.

Forward-looking information

Some of the items reported relate to future events and actual outcomes may differ materially. In addition to those factors explicitly commented on, other factors may also materially affect the actual outcome, such as economic conditions, exchange rates and interest rate levels, political risks, competition and pricing, product development, commercialisation and technical difficulties, supply problems and customer credit losses.

Alternative performance measures

		Q4	Q4	Full year	Full year
SEK million unless otherwise specified	Note	2022	2021	2022	2021
Operating profit (EBITDA)		296	449	1,411	1,805
Non-recurring items		—	—	—	– 50
Adjusted operating profit (EBITDA)		296	449	1,411	1,755

Operating profit (EBIT)	2	152	326	867	1,333
Reversal of amortization of intangible assets arising in
connection with acquisitions		11	10	41	36
Operating profit (EBITA)		163	336	908	1,369
Non-recurring items		—	—	—	– 50
Adjusted operating profit (EBITA)		163	336	908	1,319

EBITA margin (%)		6.9	10.7	8.4	11.8
Adjusted EBITA margin (%)		6.9	10.7	8.4	11.4

Profit after financial income and expense	2	186	433	875	1,401
Non-recurring items		– 41	– 115	– 41	– 165
Adjusted profit after financial income and expense		145	318	834	1,236

Profit margin (%)		7.9	13.8	8.1	12.1
Adjusted profit margin (%)		6.1	10.1	7.7	10.6

Profit after tax		146	386	697	1,160
Non-recurring items		– 41	– 115	– 41	– 165
Tax on non-recurring items		—	—	—	—
Adjusted profit after tax		105	271	656	995
Cash flow after investments, excluding acquisitions and disposals		—	—	8	446
Non-recurring items (affecting cash flow)		—	—	—	—
Adjusted cash flow after investments, excl. acquisitions and disposals		—	—	8	446
Operating profit (EBIT)	2	—	—	867	1,333
Non-recurring items		—	—	—	– 50
Adjusted operating profit (EBIT)		—	—	867	1,283

Cash conversion (%)		—	—	1	35

Including a non-recurring item of SEK 41 million in profit after financial items and profit after tax in Q4-2022 and full year 2022. The nonrecurring items have been recognised at Group level and has therefore not affected the earnings of the business areas.

Including a non-recurring item of SEK 50 million in operating profit for the full year 2021 and SEK 115 million in profit after financial items in Q4- 2021 and full year 2021, which in total impacted the profit after tax by SEK 165 million. The non-recurring items have been recognised at Group level and has therefore not affected the earnings of the business areas.

Alternative performance measures	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q1	Q4
SEK million unless otherwise specified	2022	2022	2022	2022	2021	2021	2021	2021	2020
Profit after financial income and exp., rolling 12 months	875	1,122	1,247	1,367	1,401
Financial expense, rolling 12 months	56	51	46	43	43
Adj. profit after financial inc. and exp., rolling 12 months	931	1,173	1,293	1,410	1,444
Total capital, at the end of period	10,007	10,635	10,220	9,984	10,056	9,542	8,784	9,191	8,482
Average total capital, last 5 quarters	10,180	10,087	9,717	9,511	9,211
Return on total capital (%)	9.1	11.6	13.3	14.8	15.7

Adj. profit after financial inc. and exp., rolling 12 months	931	1,173	1,293	1,410	1,444
Capital employed, at the end of period	7,597	7,659	7,220	7,074	6,809	6,318	5,984	6,479	6,116
Average capital employed, last 5 quarters	7,272	7,016	6,681	6,533	6,341
Return on capital employed (%)	12.8	16.7	19.4	21.6	22.8

Operating profit (EBIT), rolling 12 months	867	1,041	1,167	1,293	1,333
Capital employed, at the end of period	7,597	7,659	7,220	7,074	6,809	6,318	5,984	6,479	6,116
Cash and bank, at the end of period	– 1,011	– 1,193	– 1,115	– 1,408	– 1,448	– 1,400	– 1,248	– 1,563	– 1,487
Operating capital, at the end of period	6,586	6,466	6,105	5,666	5,361	4,918	4,736	4,916	4,629
Average operating capital, latest 5 quarters	6,037	5,703	5,357	5,119	4,912
Return on operating capital (%)	14.4	18.3	21.8	25.3	27.1

Profit after tax, rolling 12 months	696	937	1,034	1,135	1,160
Shareholders' equity, at the end of period	5,392	5,398	4,998	5,010	4,768	4,280	3,951	4,025	3,699
Average shareholders' equity, latest 5 quarters	5,113	4,891	4,601	4,407	4,145
Return on shareholders' equity (%)	13.6	19.2	22.5	25.8	28.0

Parent Company income statement (summary)

	Q4	Q4	Full year	Full year
SEK million	2022	2021	2022	2021
Net sales	12	16	65	69

Selling expenses	– 2	– 3	– 7	– 8
Administrative expenses	– 13	– 17	– 57	– 57
Other operating income	2	1	5	10
Other operating expenses	– 13	– 10	– 61	– 38

Operating profit	– 14	– 13	– 55	– 24

Profit from participations in Group companies	141	457	282	690
Financial income	14	20	60	74
Financial expenses	– 1	– 34	– 103	– 53
Profit after financial income and expense	140	430	184	687

Appropriations	266	255	266	256
Tax	– 57	– 89	– 42	– 80
Profit after tax	349	596	408	863

Depreciation/amortization	—	—	—	—

Parent Company balance sheet (summary)

SEK million	31/12/2022	31/12/2021
Assets
Property, plant and equipment	1	1
Financial assets	4,061	3,821
Total fixed assets	4,062	3,822

Other receivables	890	1,104
Cash and bank	6	60
Total current assets	896	1,164

Total assets	4,958	4,986

Shareholders' equity and liabilities
Shareholders' equity	3,004	3,108
Untaxed reserves	247	283
Deferred tax liabilities	1	17
Other provisions	4	6
Long-term liabilities	1,511	1,275
Current liabilities	191	297
Total shareholders' equity and liabilities	4,958	4,986

Transactions with related parties	Period	Services	Services	Interest		Interest Result from	Rec fr rel	Liab to rel
		sold	bought	income	expenses	shares in	part on bal	part on bal
SEK million						Group com	sheet date	sheet date
Subsidiary	Full year 2022	65	– 22	60	– 1	282	1,824	181
Subsidiary	Full year 2021	69	– 23	74	—	690	2,921	238

None of the company's Board members or senior executives currently have, or have 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 (publ), Nolatovägen 32, SE-269 78 Torekov, Sweden

• Tel. +46 431 442290 • Fax +46 431 442291 • Corp. id. number 556080-4592

• E-mail [email protected] • Website www.nolato.com

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Nolato B

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