Nolato B

Earnings Release • Feb 7, 2025

YEAR-END REPORT 2024

JANUARY-DECEMBER

Growth with sharply improved profit

FOURTH QUARTER OF 2024 IN BRIEF

• Sales increased to SEK 2,382 million (2,252)
• Operating profit (EBITA) increased to SEK 240 million (177)
• EBITA margin of 10.1% (7.9)
• Profit after tax was SEK 163 million (125, excl. non-recurring items in 2023)
• Basic and diluted earnings per share increased to SEK 0.61 (0.46, excl. non-recurring items in 2023)
• Cash flow from operating activities increased to SEK 480 million (186)

FULL YEAR 2024 IN BRIEF

• Sales increased to SEK 9,664 million (9,546)
• Operating profit (EBITA) rose to SEK 958 million (761, excl. non-recurring item in 2023)
• EBITA margin of 9.9% (8.0, excl. non-recurring item in 2023)
• Profit after tax was SEK 658 million (545, excl. non-recurring items in 2023)
• Basic and diluted earnings per share totaled SEK 2.44 (2.02, excl. non-recurring items in 2023)
• Cash flow from operating activities increased to SEK 1,377 million (781)
• The equity/assets ratio was 59% (56) and net financial liabilities were SEK 671 million (895)
• The Board proposes an unchanged dividend of SEK 1.50 per share (1.50)

Comments from the CEO - Stable foundation for growth and strengthened profitability

The Group's net sales, adjusted for currency, increased by 5% in the fourth quarter. We are thus maintaining our trend of organic growth quarter-on-quarter after having significantly changed our product mix over the past two years. At the same time, our EBITA margin rose to 10.1%, which is an improvement of 2.2 percentage points compared with last year. We thus see that our strategic price revisions and cost savings implemented to boost profitability are gradually bearing fruit.

In the Medical Solutions business area, sales increased by 4% in the quarter, adjusted for currency. The Drug Delivery market area had healthy volumes for most of its products, while In vitro diagnostics (IVD) also delivered growth compared with low volumes in the same quarter last year. These activities contributed to an improvement in the EBITA margin of 1.3 percentage points to 11.2%.

The Engineered Solutions business area, which we launched in January 2024, performed

positively during the year, and has established its envisaged form and structure. We have intensified our efforts to cultivate new segments in existing market areas with the ambition to diversify our revenues even further. All market areas, apart from automotive, displayed sales growth in the quarter. Sales, adjusted for currency, increased by 7%. Materials (formerly EMC) increased organic sales by as much as 20%, supported by a recovery for network equipment within telecom. The business area's EBITA margin strengthened by a full 3.8 percentage points to 9.2%, thanks to improved volumes and efficiency.

Cash flow from operating activities was very strong in the quarter, amounting to a full SEK 480 million. This further reinforced our already solid financial position, and gives net financial liabilities in relation to EBITDA of a low 0.4x.

Nolato's overall strategy is to be the customer's first choice of innovative partner in sustainable design and production. We achieve this by having in-depth knowledge about, and a close relationship with, our customers. Together with our flexibility and production capacity on three continents, this enables us to serve major global and strategic customers. The foundation has been laid for increasingly profitable growth over time.

Group highlights

		Q4 2024	Q4 2023	Full year 2024	Full year 2023
SEK million unless otherwise specified	Note
Net sales	1	2,382	2,252	9,664	9,546
Operating profit (EBITDA)		388	318	1,516	1,253
Operating profit (EBITA)		240	177	958	701
EBITA margin, %		10.1	7.9	9.9	7.3
Operating profit (EBIT)	2	228	165	913	657
Profit after financial income and expense	2	215	149	848	616
Profit after tax		163	75	658	435
Earnings per share, basic and diluted, SEK	3	0.61	0.28	2.44	1.61
Cash flow from operating activities		480	186	1,377	781
Net investm. affecting cash fl., excl. acq. and disposals		172	106	636	425
Cash conversion, %				86	65
Financial net debt in relation to adjusted EBITDA, times				0.4	0.7
Return on capital employed, %				12.3	9.0
Return on shareholders' equity, %				12.2	8.1
Equity/assets ratio, %				59	56
Net financial liabilities, excl. pension- & lease liabilities				671	895

See definitions of IFRS measures and alternative performance measures on page 18.

Including a non-recurring item of SEK -60 million in the operating profit for the full year 2023 and SEK -50 million in the profit after tax in Q4-2023 and for the full year 2023.

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

Christer Wahlquist, President and CEO, Nolato AB

Fourth quarter 2024

• Consolidated sales totaled SEK 2,382 million (2,252), which, adjusted for currency, was an increase of 5%
• Organic growth by both business areas in the quarter
• Operating profit (EBITA) rose by 36% to SEK 240 million (177)
• The EBITA margin rose to 10.1% (7.9) as a result of strengthened profitability by both business areas
• Very strong cash flow from operating activities, which rose to SEK 480 million (186)

Sales

Consolidated sales totaled SEK 2,382 million (2,252); an increase of 5% adjusted for currency.

Medical Solutions sales amounted to SEK 1,359 million (1,300); adjusted for currency, sales increased by 4%. The Drug Delivery market area displayed strong growth in the quarter, with higher volumes in deliveries of insulin pumps. In vitro diagnostics (IVD) also continued to display growth compared with low volumes last year. The Pharmaceutical Packaging market area had lower volumes because of inventory adjustments and geopolitical effects on customers following a strong 2023. Surgery had lower sales compared with the same quarter last year, but was adversely affected by inventory adjustments. The market for Surgery has been sluggish during the year, particularly in the second half of the year. Volumes within Other were at a low level with a continued negative effect from a previously communicated product recall at a customer.

Engineered Solutions sales totaled SEK 1,033 million (958); a sharp increase of 7%, adjusted for currency. All market areas except automotive industry showed increased sales. After an extended period of declining volumes, Consumer Electronics saw an increase in growth. Investments in new customer projects have started to bear fruit. Volumes within Hygiene showed healthy growth during the quarter. The automotive industry had lower volumes, as expected, and several of our customers shut down operations for longer than usual over the Christmas period. Reduced end-customer demand within automotive will likely also have a negative impact on the start of 2025.

Volumes in the Materials business (previously EMC) sharply increased year on year, with a full 20% rise in sales, adjusted for currency. Following an extended period of declining volumes for network equipment within Telecom, volumes grew during the quarter.

Profitable growth and strong cash flow

Profit

Operating profit (EBITA) for Medical Solutions rose to SEK 152 million (129), and to SEK 95 million (52) for Engineered Solutions. Overall, the Group's operating profit (EBITA) increased by 36% to SEK 240 million (177).

The EBITA margin for Medical Solutions increased to 11.2% (9.9). For Engineered Solutions, the margin rose to 9.2% (5.4). Strategic price revisions, cost savings and a favorable product mix have contributed to the Group's positive margin trend. Overall, the Group's EBITA margin increased by a full 2.2 percentage points to 10.1% (7.9).

Operating profit (EBIT) grew to SEK 228 million (165).

Profit after net financial income/expense was SEK 215 million (149).

Profit after tax was SEK 163 million (125, excl. non-recurring item in 2023). Basic and diluted earnings per share increased to SEK 0.61 (0.46, excl. non-recurring items in 2023).

Cash flow from operating activities was very strong, amounting to SEK 480 million (186) in the fourth quarter. The improvement in profit boosted cash flow before changes in working capital. Working capital requirements were lower, and the change for the period was positive, amounting to SEK 126 million (-68), which also had a positive impact. Net investments affecting cash flow rose to SEK 172 million (106). Cash flow after investments increased during the quarter, totaling SEK 308 million (80).

Operating profit (EBITA) SEKm

Business areas' share of operating profit (EBITA)

Earnings per share SEK

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

SEK million	Sales Q4/2024	Sales Q4/2023	EBITA Q4/2024	EBITA Q4/2023	EBITA marg. Q4/2024	EBITA marg. Q4/2023
Medical Solutions	1,359	1,300	152	129	11.2%	9.9%
Engineered Solutions	1,033	958	95	52	9.2%	5.4%
Intra-Gr. adjustm., Parent Co.	-10	-6	-7	-4
Group total	2,382	2,252	240	177	10.1%	7.9%

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

Full year 2024

Sales and earnings

Consolidated sales totaled SEK 9,664 million (9,546) for 2024. Adjusted for currency and acquisitions, this was a 1% increase.

Medical Solutions sales increased to SEK 5,434 million (5,308); adjusted for currency and acquisitions, this was an increase of 2%. Engineered Solutions sales were unchanged adjusted for currency and acquisitions, amounting to SEK 4,243 million (4,245).

The Group's operating profit (EBITA) rose sharply by 26% to SEK 958 million (761, excl. non-recurring item in 2023).

Overall, the Group's EBITA margin was 9.9% (8.0, excl. non-recurring item in 2023).

Operating profit (EBIT) amounted to SEK 913 million (717 excl. non-recurring item in 2023).

Profit after net financial income/expense was SEK 848 million (676, excl. non-recurring item in 2023).

Profit after tax was SEK 658 million (545, excl. non-recurring items in 2023). Basic and diluted earnings per share were SEK 2.44 (2.02, excl. non-recurring items in 2023). The effective tax rate was 22.4% (19.4%, excl. non-recurring items in 2023).

Return on capital employed was 12.3% (9.0). Return on equity was 12.2% (8.1). Cash conversion was 86% (65).

Medical Solutions - Sales and profit

SEK million	Q1 - Q4 2024	Q1 - Q4 2023
Sales	5,434	5,308
Operating profit (EBITA) EBITA margin (%)	586 10.8%	525 9.9%
Operating profit (EBIT)	553	494

Medical Solutions sales amounted to SEK 5,434 million (5,308); adjusted for currency and acquisitions, this was an increase of 2%. The In vitro diagnostics (IVD) market area grew compared with a weak last year. Drug Delivery has also increased its sales, with higher delivery volumes for insulin pumps. The Pharmaceutical Packaging market area has had lower volumes because of inventory adjustments and geopolitical effects on customers following a strong 2023. Volumes in Other have been lower. During the first quarter, it was reported that one of Nolato's customers in this area was affected by a product recall, which had a negative impact on Nolato. The product had annual sales of roughly SEK 50 million prior to the recall.

Operating profit (EBITA) for Medical Solutions rose to SEK 586 million (525).

The EBITA margin for Medical Solutions was 10.8% (9.9). Strategic price revisions and cost savings have contributed to the improvement in the margin.

As announced in a press release on April 2, Nolato has signed a new long-term cooperation agreement with a major existing customer to supply medical devices to administer medication, including to support weight loss and treat diabetes. The supply agreement will have no material impact on Nolato's sales and profit in the current year. At full-scale production, within a five-year period, it is estimated that this cooperation will generate annual sales in the region of SEK 700 million. The cooperation will result in Nolato investing, from the second quarter of 2024, a total of around SEK 600 million in new manufacturing capacity. Just over one fifth of the total amount was invested in the second half of 2024, while most of the remaining amount is expected to be invested in 2025.

Engineered Solutions - Sales and profit

SEK million	Q1 - Q4 2024	Q1 - Q4 2023
Sales	4,243	4,245
Operating profit (EBITA)	409	266
EBITA margin (%)	9.6%	6.3%
Operating profit (EBIT)	397	253

Engineered Solutions sales totaled SEK 4,243 million (4,245). Adjusted for currency and acquisitions, sales were unchanged. Volumes in the Consumer Electronics market area have declined, mainly due to the reduction by a previously significant VHP customer, leading to lower sales. Automotive displayed growth during the first half of the year, although volumes decreased significantly in the second half. Lower end-customer demand in the automotive industry is also expected to have a negative impact on the start of 2025. Volumes within Hygiene have shown healthy growth during the year. Other experienced good growth, with the consumer discretionary sector showing a recovery following an extended period of lower demand due to economic conditions.

Volumes in the Materials business (previously EMC) increased year on year, with a 10% rise in sales, adjusted for currency and acquisitions. Strong growth in new products and areas of technology is resulting in increased market share and growth. This was partly offset during the first half of the year by lower sales for network equipment within telecom. After an extended period of declining volumes in telecom, these increased from low levels in the second half of the year, which contributed to the strong growth in the third and fourth quarters.

Operating profit (EBITA) for Engineered Solutions increased significantly to SEK 409 million (266). A favorable product mix and cost savings, particularly in the Chinese business, had a positive impact on the profit.

The EBITA margin for Engineered Solutions rose by 3.3 percentage points to 9.6% (6.3).

14% (12)

Cash flow

Cash flow from operating activities was very strong, amounting to SEK 480 million (186) in the fourth quarter. The improvement in profit boosted cash flow before changes in working capital. Working capital requirements were lower, and the change for the period was positive, amounting to SEK 126 million (-68), chiefly thanks to an improved situation for trade receivables. Net investments affecting cash flow rose to SEK 172 million (106). Cash flow after investments increased during the quarter, totaling SEK 308 million (80).

For the full year, cash flow from operating activities was very strong, at SEK 1,377 million (781). Improved profit and lower working capital requirements had a positive effect. Cash flow after investments also rose during the period to SEK 743 million (446), excluding acquisitions. Net investments affecting cash flow increased and totaled SEK 636 million (425), excluding acquisitions. In the first quarter, an operating property in the Medical Solutions business area was acquired in Sweden for SEK 141 million. In the second half of the year, the rate of investment increased mainly due to the investments made within Medical Solutions for the new long-term cooperation agreement with a large existing customer.

Cash conversion for the last 12 months was 86% (65).

Financial position

Cash and bank balances decreased to SEK 672 million (688), and interest-bearing financial liabilities to credit institutions amounted to SEK 1,343 million (1,583). Net financial liabilities thus declined to SEK 671 million (895) and the debt ratio for this was 0.4 (0.7). There are also interest-bearing pension liabilities of SEK 241 million (228) and interest-bearing lease liabilities of SEK 188 million (293). Shareholders' equity was SEK 5,738 million (5,171). The equity/assets ratio increased to 59% (56).

Financial position

	Dec	Dec
SEK million	2024	2023
Interest-bearing liabilities, credit institutions	1,343	1,583
Cash and bank	672	688
Net financial liabilities	671	895
Interest-bearing pension liabilities	241	228
Net financial liabilities, incl. pension liabilities	912	1,123
Lease liabilities	188	293
Net financial liabilities, including pension- & lease liabilities	1,100	1,416
Working capital	1,292	1,381
As a percentage of sales (average) (%)	13.8	13.0
Capital employed	7,510	7,275
Return on capital employed (average) (%)	12.3	9.0
Shareholders' equity	5,738	5,171
Return on shareholders' equity (average) (%)	12.2	8.1

Personnel

The average number of employees during the period was 5,837 (5,732).

Dividend

At the Annual General Meeting, the Board of Directors and the President and CEO will propose an unchanged dividend of SEK 1.50 per share (1.50), which corresponds to SEK 404 million (404). The pay-out ratio is 61% (74, excluding non-recurring items in 2023). The dividend yield was 2.8% in relation to the listed share price at December 31, 2024. Nolato's dividend policy is to propose a dividend that exceeds 50% of profit after tax, taking account of Nolato's long-term development opportunities, financial position and investment needs.

Events after the balance sheet date

No significant events have occurred since the end of the period, but geopolitical tensions 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.

Significant risks and uncertainty factors

The Group's and parent company's business risks and risk management, as well as the management of financial risks, are described on pages 119–121 and in Note 30 on pages 149–151 of the 2023 annual report.

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

Seasonal effects

Nolato does not experience any significant seasonal variations. However, the third quarter can be negatively affected by the fact that the holiday period falls in this quarter both for Nolato and its customers.

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 14,888 shareholders at December 31. The largest owners are Nordea Fonder with 10%, the Jorlén family, the Boström family, the Hamrin family and the First Swedish National Pension Fund (AP1) with 9% each, as well as Handelsbanken Fonder with 5% of the capital.

The Parent Company

For the Parent Company, which has no operating activities, sales amounted to SEK 96 million (81). Profit/Loss after financial income and expense was SEK -37 million (-26).

Contingent liabilities totaled SEK 282 million (265).

Accounting and valuation principles

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 2023.

IASB and the IFRS Interpretations Committee have issued new standards and statements that apply to financial years starting on or after January 1, 2025. 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.

Following adopted Pillar II legislation, the Group has reported additional top-up tax of SEK 1 million in Switzerland. The Group's other jurisdictions come under the transitional safe harbor rules (relief rules).

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

Nomination Committee

In accordance with a decision at Nolato's AGM on May 6, 2024, the largest shareholders in terms of the number of votes at the end of September 2024 have appointed the following individuals as members of Nolato's Nomination Committee ahead of the 2025 AGM: Henrik Jorlén, chairman (Jorlén family), Gun Boström (Boström family), Lovisa Hamrin (Hamrin family), Anna Magnusson (First Swedish National Pension Fund) and Katarina Hammar (Nordea Fonder).

Shareholders who would like to submit proposals to the Nomination Committee can contact the chairman of the Nomination Committee, Henrik Jorlén, by e-mail at henrik.jorlen@gmail.com or by mail at Kommendörsgatan 4, 269 77 Torekov, Sweden.

Annual General Meeting

The Annual General Meeting will be held on May 6, 2025. The shareholders of Nolato AB (publ) are invited to attend at 3 pm CET at Grevieparken, Sports Hall, Hålarpsvägen 14, Grevie, Sweden. Entry from 2.15 pm CET.

Financial information schedule

• Capital Market Day: 13 March, 2025
• Three-month interim report 2025: 6 May, 2025
• 2025 Annual General Meeting: 6 May, 2025
• Six-month interim report 2025: 18 July, 2025
• Nine-month interim report 2025: 28 October, 2025
• Year-end report 2025: 5 February, 2026

Contact

Christer Wahlquist, President and CEO, telephone +46705 804848.

Per-Ola Holmström, Executive Vice President and CFO, telephone +46705 763340.

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 7, 2025 at 7.45 am CET.

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

Webcast conference call on February 7

In connection with the year-end report, Nolato will hold a webcast conference call in English at 8.45 am 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 website is available at: https://www.finwire.tv/webcast/nolato/yearend-report-2024/

The presentation will be available at: www.nolato.com/en/IR after publication of the year-end report.

The webcast will be available at the same address after the live broadcast.

Capital Markets Day 2025

Nolato will hold a Capital Markets Day on March 13, 2025 in central Stockholm. The Capital Markets Day will provide an opportunity for investors, analysts and the media to gain an update on the Company's position and operations as well as its strategy and goals. The event starts at 1 pm CET. Further information and a link for registration will be available at www.nolato.com/CMD

Consolidated income statement - condensed

SEK million unless otherwise specified	Note	Q4 2024	Q4 2023	Full year 2024	Full year 2023
Net sales Cost of goods sold Gross profit	1	2,382 -1,987 395	2,252 -1,910 342	9,664 -8,051 1,613	9,546 -8,210 1,336
Selling expenses Administrative expenses Other operating- income and expenses, net		-64 -131 28 -167	-56 -121 — -177	-242 -487 29 -700	-227 -462 10 -679
Operating profit	2	228	165	913	657
Financial income and expense Profit after financial income and expense	2 2	-13 215	-16 149	-65 848	-41 616
Tax Profit after tax		-52 163	-74 75	-190 658	-181 435
All earnings are attrib. to the Parent Co.'s shareh.
Depreciation/amortization reg. non-current assets		-160	-153	-603	-596
Earnings per share, basic and diluted, SEK	3	0.61	0.28	2.44	1.61
Number of shares at the end of the period, bef. dil. Number of shares at the end of the period, after dil. Average number of shares, before dilution Average number of shares, after dilution		269,377,080 269,377,080 269,377,080 269,377,080	269,377,080 269,377,080 269,377,080 269,377,080	269,377,080 269,377,080 269,377,080 269,377,080	269,377,080 269,377,080 269,377,080 269,377,080

At the end of the period, the Group had incentive programmes, see note 4.

Consolidated comprehensive income

SEK million	Q4 2024	Q4 2023	Full year 2024	Full year 2023
Profit after tax	163	75	658	435
Other comprehensive income
Items that cannot be transferred to profit for the period
Revaluations of defined benefit pension plans	-21	-62	-15	-57
Tax attrib. to items that cannot be transferred to profit	4	10	3	9
	-17	-52	-12	-48
Items that have been converted or can be converted into profit for the period
Translation differences on translation of foreign operations	275	-249	326	-109
Changes in the fair value of cash flow hedges	-6	9	-10	6
Tax attrib. to changes in the fair value of cash flow hedges	1	-2	2	-1
	270	-242	318	-104
Other comprehensive income, net of tax	253	-294	306	-152
Total comp. inc. for the period attrib. to the Parent Co.'s shareh.	416	-219	964	283

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

Consolidated balance sheet - condensed

	Dec	Dec
SEK million	2024	2023
Assets
Non-current assets
Non-current intangible assets	2,526	2,401
Property, plant and equipment	3,129	2,812
Rights of use	181	282
Non-current financial assets	2	2
Other non-current receivables	1	1
Deferred tax assets	13	14
Total non-current assets	5,852	5,512
Current assets
Inventories	1,183	1,196
Accounts receivable	1,558	1,525
2) Other current assets	423	379
Cash and bank	672	688
Total current assets	3,836	3,788
Total assets	9,688	9,300
Shareholders' equity and liabilities
Shareholders' equity	5,738	5,171
Liabilities and provisions
1) Long-term liabilities and provisions	1,793	2,056
Deferred tax liabilities	241	237
1) 3) Current liabilities and provisions	1,916	1,836
Total liabilities and provisions	3,950	4,129
Total shareholders' equity and liabilities	9,688	9,300
1) Interest-bearing/non-interest-bearing liabilities and provisions:
Interest-bearing liabilities and provisions	1,772	2,104
Non-interest-bearing liabilities and provisions	2,178	2,025
Total liabilities and provisions	3,950	4,129
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	13
3) Derivative liabilities are included in current liabilities and provisions at	4	5

Changes in consolidated shareholders' equity - condensed

	Dec	Dec
SEK million	2024	2023
Shareholders' equity at the beginning of the period	5,171	5,392
Total comprehensive income for the period	964	283
Dividends	-404	-512
Share warrants included in incentive programmes	7	8
Shareholders' equity at the end of period attrib. to Parent Co's shareholders	5,738	5,171

At the end of the period, the Group had incentive programmes, see note 4.

Consolidated cash flow statement - condensed

SEK million	Q4 2024	Q4 2023	Full year 2024	Full year 2023
Cash flow from oper. activities bef. changes in working cap. Changes in working capital	354 126	254 -68	1,279 98	1,009 -228
Cash flow from operating activities	480	186	1,377	781
Cash flow from investment activities	-172	-106	-636	-444
Cash flow before financing activities	308	80	741	337
Cash flow from financing activities	-388	-82	-798	-631
Cash flow for the period	-80	-2	-57	-294
Cash and cash equivalents at the beginning of the period	718	720	688	1,011
Exchange rate difference in liquid assets	34	-30	41	-29
Cash and cash equivalents at the end of the period	672	688	672	688

Note 1 - Revenue

	Full year - 2024			Full year - 2023
SEK million	Group	Elim.	Med. Sol.	Eng. Sol.	Group	Elim.	Med. Sol.	Eng. Sol.
Total	9,664	-13	5,434	4,243	9,546	-7	5,308	4,245
Europe	5,656	-6	2,905	2,757	5,613	-4	2,766	2,851
Sweden	1,122	-3	170	955	1,040	-4	152	892
Hungary	1,343	—	799	544	1,183	—	680	503
Other Europe	3,191	-3	1,936	1,258	3,390	—	1,934	1,456
North America	2,790	—	2,193	597	2,826	—	2,200	626
USA	2,533	—	2,048	485	2,596	—	2,085	511
Other North America	257	—	145	112	230	—	115	115
Asia	1,032	-7	176	863	915	-3	171	747
Rest of World	186	—	160	26	192	—	171	21

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

For the year 2024, the Group recognised decreased provision of impaired trade receivables of SEK 1 million. Impairment losses are recognised in the cost of goods sold.

Note 2 - Reconciliation of consolidated income before tax

	Full year	Full year
SEK million	2024	2023
Operating profit (EBIT)
Medical Solutions	553	494
Engineered Solutions	397	253
Group adjustments, Parent Company	-37	-90
Consolidated operating profit (EBIT)	913	657
Financial income and expense (not distrib. by business areas)	-65	-41
Consolidated profit before tax	848	616

Including a non-recurring item of SEK -60 million in operating profit for the full year 2023. The nonrecurring item have been recognised at Group level and has therefore not affected the earnings of the business areas.

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

	Q4	Q4	Full year	Full year
SEK million	2024	2023	2024	2023
Profit after tax	163	75	658	435
Average number of shares, before dilution	269,377,080	269,377,080	269,377,080	269,377,080
Basic earnings per share (SEK)	0.61	0.28	2.44	1.61
Non-recurring items	—	50	—	110
Profit after tax excl. non-recurring items	163	125	658	545
Basic earnings per share excl. non-rec. items (SEK)	0.61	0.46	2.44	2.02
Average number of shares, after dilution	269,377,080	269,377,080	269,377,080	269,377,080
Diluted earnings per share (SEK)	0.61	0.28	2.44	1.61
Diluted earnings per share excl. non-rec. items (SEK)	0.61	0.46	2.44	2.02
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	269,377,080	269,377,080	269,377,080

Note 4 - Incentive programmes

	Dec	Dec
	2024	2023
Incentive Programme 2019/2024
Series 2021/2024
Redemption 01/05/2024 - 15/12/2024 with subscription price SEK		140.20
Maximum new class B shares		257,000
Incentive Programme 2022/2028
Series 2022/2026
Redemption 15/12/2025 - 15/06/2026 with subscription price SEK	57.80	57.80
Maximum new class B shares	1,685,000	1,685,000
Series 2023/2027
Redemption 15/12/2026 - 15/06/2027 with subscription price SEK	59.20	59.20
Maximum new class B shares	1,750,000	1,750,000
Series 2024/2028
Redemption 15/12/2027 - 15/06/2028 with subscription price SEK	68.00
Maximum new class B shares	1,525,000	2,660,000
Maximum new class B shares in the programmes	4,960,000	6,352,000

Five-year overview

	2024	2023	2022	2021	2020
IFRS measures
Operating profit (EBIT) (SEK million)	913	657	867	1,333	1,048
Basic earnings per share (SEK)	2.44	1.61	2.59	4.32	3.03
Diluted earnings per share (SEK)	2.44	1.61	2.59	4.32	3.02
Alternative performance measures
Net sales (SEK million)	9,664	9,546	10,774	11,610	9,359
Operating profit (EBITA) (SEK million)	958	701	908	1,369	1,066
EBITA margin (%)	9.9	7.3	8.4	11.8	11.4
Profit after financial income and expense (SEK million)	848	616	875	1,401	1,014
Profit after tax (SEK million)	658	435	697	1,160	806
Cash flow after investments, excl. acq. and disposals (SEK million)	743	446	8	446	905
Cash conversion (%)	86	65	1	35	87
Return on capital employed (%)	12.3	9.0	12.8	22.8	20.7
Return on shareholders' equity (%)	12.2	8.1	13.6	28.0	23.9
Net financial liabilities, excl. pension- & liabilities (SEK million)	671	895	708	51	298
Equity/assets ratio (%)	59	56	54	47	43
Dividend per share (2024 proposal) (SEK)	1.50	1.50	1.90	1.90	1.60
Average number of employees	5,837	5,732	6,627	8,669	6,721
Including any non-recurring items.

Quarterly data (summary)

	Note	Year	Q1	Q2	Q3	Q4	Full year
IFRS measures
Operating profit (EBIT) (SEK million)	2	2024	227	234	224	228	913
	2	2023	183	186	123	165	657
		2022	258	252	205	152	867
Earnings per share, basic & diluted (SEK)	2	2024	0.60	0.63	0.61	0.61	2.44
	2	2023	0.50	0.58	0.26	0.28	1.61
		2022	0.75	0.71	0.59	0.54	2.59
Alternative performance measures
Net sales (SEK million)	1	2024	2,442	2,439	2,401	2,382	9,664
	1	2023	2,476	2,478	2,340	2,252	9,546
		2022	2,879	2,905	2,626	2,364	10,774
Operating profit (EBITDA) (SEK million)		2024	374	383	371	388	1,516
		2023	326	333	276	318	1,253
		2022	386	386	343	296	1,411
Operating profit (EBITA) (SEK million)		2024	238	245	235	240	958
		2023	193	198	133	177	701
		2022	267	264	214	163	908
EBITA margin (%)		2024	9.7	10.0	9.8	10.1	9.9
		2023	7.8	8.0	5.7	7.9	7.3
		2022	9.3	9.1	8.1	6.9	8.4
Profit after financial income and exp. (SEK million)		2024	209	215	209	215	848
		2023	173	192	102	149	616
		2022	251	241	197	186	875
Profit after tax (SEK million)		2024	162	169	164	163	658
		2023	136	155	69	75	435
		2022	201	190	160	146	697
Net financial liabilities, excluding pension-		2024	1,026	1,107	913	671	671
and lease liabilities (SEK million)		2023	763	1,163	1,003	895	895
		2022	101	640	580	708	708

Including a non-recurring item of SEK -60 million in operating profit in Q3-2023 and a non-recurring item of SEK -50 million in profit after tax in Q4-2023. Including a non-recurring item of SEK 41 million in profit after financial income and expense and profit after tax in Q4-2022.

Quarterly data (summary)
--------------------------	--

	Year	Q1	Q2	Q3	Q4	Full year
Alternative performance measures
Cash flow from operating activities (SEK million)	2024	136	434	327	480	1,377
	2023	75	240	280	186	781
	2022	89	131	275	-89	406
Cash flow from operations per share	2024	0.50	1.61	1.21	1.78	5.11
before dilution (SEK)	2023	0.28	0.89	1.04	0.69	2.90
	2022	0.33	0.49	1.02	-0.33	1.51
Net investments affecting cash flow, excluding	2024	-230	-98	-136	-172	-636
acquisitions and disposals (SEK million)	2023	-121	-106	-92	-106	-425
	2022	-130	-113	-109	-99	-451
Cash flow after investments, excluding acquisitions	2024	-92	336	191	308	743
and disposals (SEK million)	2023	-46	224	188	80	446
	2022	-41	71	166	-188	8
Cash flow after investments, excl. acquisitions and	2024	-0.34	1.25	0.71	1.14	2.76
disposals per share before dilution (SEK)	2023	-0.17	0.83	0.70	0.30	1.66
	2022	-0.15	0.26	0.62	-0.70	0.03
Cash conversion (%)	2024	57	70	68	86	86
	2023	0	21	25	65	65
	2022	27	1	5	1	1
Return on total capital (%)	2024	7.4	7.7	8.9	9.5	9.5
	2023	8.4	7.9	7.0	6.9	6.9
	2022	14.8	13.3	11.6	9.1	9.1
Return on capital employed (%)	2024	9.5	9.9	11.5	12.3	12.3
	2023	11.5	10.7	9.4	9.0	9.0
	2022	21.6	19.4	16.7	12.8	12.8
Return on operating capital (%)	2024	10.2	10.9	12.5	10.9	10.9
	2023	12.5	11.0	9.5	9.7	9.7
	2022	25.3	21.8	18.3	14.4	14.4
Return on shareholders' equity (%)	2024	8.5	8.9	10.7	12.2	12.2
	2023	12.0	11.2	9.4	8.1	8.1
	2022	25.8	22.5	19.2	13.6	13.6
Shareholders' equity per share, before	2024	21	20	20	21	21
dilution (SEK)	2023	21	20	20	19	19
	2022	19	19	20	20	20
Closing share price Nolato B (Nasdaq Stockholm)	2024	47.84	57.50	55.90	54.20	54.20
	2023	52.55	50.70	44.82	52.90	52.90
	2022	70.00	55.00	50.85	54.65	54.65
Average number of employees	2024	5,552	5,956	5,766	5,837	5,837
	2023	5,815	5,919	5,727	5,732	5,732
	2022	7,377	7,279	7,004	6,627	6,627

	Note	Year	Q1	Q2	Q3	Q4	Full year
Alternative performance measures
Net sales (SEK million)
Medical Solutions	1	2024	1,355	1,365	1,355	1,359	5,434
	1	2023	1,324	1,364	1,320	1,300	5,308
		2022	1,088	1,214	1,245	1,312	4,859
Engineered Solutions	1	2024	1,087	1,077	1,046	1,033	4,243
	1	2023	1,153	1,114	1,020	958	4,245
		2022	1,792	1,693	1,382	1,055	5,922
Group adjustments, Parent Company	1	2024	—	-3	—	-10	-13
	1	2023	-1	—	—	-6	-7
		2022	-1	-2	-1	-3	-7
Group total	1	2024	2,442	2,439	2,401	2,382	9,664
	1	2023	2,476	2,478	2,340	2,252	9,546
		2022	2,879	2,905	2,626	2,364	10,774
Operating profit (EBITA) (SEK million)
Medical Solutions		2024	140	149	145	152	586
		2023	132	138	126	129	525
		2022	106	121	104	126	457
Engineered Solutions		2024	103	108	103	95	409
		2023	68	72	74	52	266
		2022	163	146	110	43	462
Group adjustments, Parent Company		2024	-5	-12	-13	-7	-37
		2023	-7	-12	-67	-4	-90
		2022	-2	-3	—	-6	-11
Group total		2024	238	245	235	240	958
		2023	193	198	133	177	701
		2022	267	264	214	163	908
EBITA margin (%)
Medical Solutions		2024	10.3	10.9	10.7	11.2	10.8
		2023	10.0	10.1	9.5	9.9	9.9
		2022	9.7	10.0	8.4	9.6	9.4
Engineered Solutions		2024	9.5	10.0	9.8	9.2	9.6
		2023	5.9	6.5	7.3	5.4	6.3
		2022	9.1	8.6	8.0	4.1	7.8
Group total		2024	9.7	10.0	9.8	10.1	9.9
		2023	7.8	8.0	5.7	7.9	7.3
		2022	9.3	9.1	8.1	6.9	8.4
Depreciation/write-downs/amortization (SEK million)
Medical Solutions		2024	-90	-93	-91	-93	-367
		2023	-84	-87	-93	-92	-356
		2022	-69	-74	-79	-86	-308
Engineered Solutions		2024	-57	-56	-56	-67	-236
		2023	-59	-60	-60	-61	-240
		2022	-58	-60	-59	-58	-235
Group adjustments, Parent Company		2024	—	—	—	—	—
		2023	—	—	—	—	—
		2022	-1	—	—	—	-1
Group total		2024	-147	-149	-147	-160	-603
		2023	-143	-147	-153	-153	-596
		2022	-128	-134	-138	-144	-544

Including a non-recurring item of SEK -60 million in operating profit in Q3-2023. The non-recurring item has been recognized at Group level and has therefore not affected the earnings of the business areas.

Definitions - IFRS measures

Earnings per share

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

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.

Average number of shares

The average basic number of shares comprises the parent 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

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

Debt/equity ratio

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

EBITA margin

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

Equity/assets ratio

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

Financial net debt in relation to adjusted operating profit (EBITDA)

Interest-bearing short- and long-term liabilities, excl. net provisions for pensions and leasing, with a deduction for cash and cash equivalents, divided by R12M EBITDA adjusted for any non-recurring items.

Net financial assets/liabilities

Interest-bearing liabilities from credit institutions less interest-bearing assets.

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 margin

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.

Return on operating capital

Operating profit 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

Profit after tax as a percentage of average shareholders' equity.

Return on total capital

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.

Operating profit (EBIT) Earnings before financial income and expense and taxes.

Alternative performance measures

		Q4	Q4	Full year	Full year
SEK million unless otherwise specified	Note	2024	2023	2024	2023
Operating profit (EBITDA)		388	318	1,516	1,253
Non-recurring items		—	—	—	60
Adjusted operating profit (EBITDA)		388	318	1,516	1,313
Operating profit (EBIT)	2	228	165	913	657
Reversal of amortization of intangible assets arising
in connection with acquisitions		12	12	45	44
Operating profit (EBITA)		240	177	958	701
Non-recurring items		—	—	—	60
Adjusted operating profit (EBITA)		240	177	958	761
EBITA margin (%)		10.1	7.9	9.9	7.3
Adjusted EBITA margin (%)		10.1	7.9	9.9	8.0
Profit after financial income and expense	2	215	149	848	616
Non-recurring items		—	—	—	60
Adjusted profit after financial income and expense		215	149	848	676
Profit margin (%)		9.0	6.6	8.8	6.5
Adjusted profit margin (%)		9.0	6.6	8.8	7.1
Profit after tax		163	75	658	435
Non-recurring items		—	50	—	110
Tax on non-recurring items		—	—	—	—
Adjusted profit after tax		163	125	658	545
Cash flow after investm., excl. acquisitions and disposals				743	446
Non-recurring items (affecting cash flow)				41	18
Adjusted cash flow after investments, excl. acq. and disp.				784	464
Operating profit (EBIT)	2			913	657
Non-recurring items				—	60
Adjusted operating profit (EBIT)				913	717
Cash conversion (%)				86	65

Including a non-recurring item of SEK -60 million for the full year 2023 and SEK -50 million in the profit after tax in Q4-2023 and for the full year 2023. The non-recurring items have been recognized 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	2024	2024	2024	2024	2023	2023	2023	2023	2022
Profit after financial income and exp., roll. 12 months	848	782	675	652	616
Financial expense, rolling 12 months	69	77	77	74	70
Adj. profit after financial inc. and exp., roll. 12 months	917	859	752	726	686
Total capital, at the end of period	9,688	9,476	9,809	9,746	9,300	9,924	10,211		10,147 10,007
Average total capital, last 5 quarters	9,604	9,651	9,798	9,866	9,918
Return on total capital (%)	9.5	8.9	7.7	7.4	6.9
Adj. profit after financial inc. and exp., roll. 12 months	917	859	752	726	686
Capital employed, at the end of period	7,510	7,366	7,595	7,691	7,275	7,581	7,826	7,726	7,597
Average capital employed, last 5 quarters	7,487	7,502	7,594	7,620	7,601
Return on capital employed (%)	12.3	11.5	9.9	9.5	9.0
Operating profit (EBIT), rolling 12 months	913	850	749	701	657
Capital employed, at the end of period	7,510	7,366	7,595	7,691	7,275	7,581	7,826	7,726	7,597
Cash and bank, at the end of period	672	718	770	664	688	720	815	932	1,011
Operating capital, at the end of period	6,838	6,648	6,825	7,027	6,587	6,861	7,011	6,794	6,586
Average operating capital, latest 5 quarters	6,785	6,790	6,862	6,856	6,768
Return on operating capital (%)	13.5	12.5	10.9	10.2	9.7
Profit after tax, rolling 12 months	658	570	475	461	435
Shareholders' equity, at the end of period	5,738	5,315	5,280	5,540	5,171	5,382	5,349	5,534	5,392
Average shareholders' equity, latest 5 quarters	5,409	5,338	5,344	5,395	5,366
Return on shareholders' equity (%)	12.2	10.7	8.9	8.5	8.1

Parent Company income statement - condensed

	Q4	Q4	Full year	Full year
SEK million	2024	2023	2024	2023
Net sales	26	23	96	81
Selling expenses	-2	-2	-6	-6
Administrative expenses	-22	-19	-86	-74
Other operating income	2	2	10	6
Other operating expenses	-15	-12	-49	-50
Operating profit/loss	-11	-8	-35	-43
Profit/loss from participations in Group companies	-1	9	8	42
Financial income	13	15	52	54
Financial expenses	-24	-12	-62	-79
Profit/loss after financial income and expense	-23	4	-37	-26
Appropriations	346	390	346	390
Tax	-65	-72	-63	-68
Profit/loss after tax	258	322	246	296
Depreciation is included	—	—	—	—
Transactions with related parties
Services sold	26	23	96	81
Services bought	-10	-8	-36	-29
Interest income Interest expenses	12 -9	12 -6	49 -9	51 -6
Profit/loss from participations in Group companies	-1	9	8	42

Parent Company balance sheet - condensed

Dec Dec 2024 2023 SEK million Assets Intangible fixed assets 2 — Property, plant and equipment — 1 Financial assets 4,149 4,236 Deferred tax assets 6 5 Total non-current assets 4,157 4,242 Current assets Other receivables 650 690 Cash and bank 23 3 Total current assets 673 693 Total assets 4,830 4,935 Shareholders' equity and liabilities Shareholders' equity 2,630 2,788 Liabilities and provisions Untaxed reserves 351 296 Other provisions 8 7 Long-term liabilities 1,536 1,454 Current liabilities 305 390 Total liabilities and provisions 2,200 2,147 Total shareholders' equity and liabilities 4,830 4,935 Transactions with related parties Receivables from related parties on balance sheet day 1,338 1,471
	Payables to related parties on balance sheet day	481	365

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.

VISION

Nolato aims to be the customer's first choice of innovative partner in sustainable design and production.

Nolato's business model

Nolato's business model is based on two decentralized business areas, which with their own decision-making and shared ambitions endeavour to fulfil our vision and the financial and sustainable goals. In this way, secure workplaces are created for employees and value is generated for the owners. With solid experience and broad expertise, close, long-term, and innovative partnerships are established and developed with customers. With well-developed and leading technology, broad development and design expertise, qualified project management, and highly efficient production, added value is created with minimal climate impact for both customers and owners.

Nolato's shared core values - Professional, Well organized, Responsible - inform all aspect of our business and are central to the sustainable development strategy.

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 thermoplastic elastomers (TPE) for leading customers within medical technology, pharmaceuticals, consumer electronics, telecom, automotive, hygiene and other selected industrial fields. Our offering spans the entire value chain - from solutions-oriented development focused on sustainability to product delivery.

Nolato's shares are listed on Nasdaq Stockholm Exchange in the Industrials sector of the Large Cap segment.

www.nolato.com

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: info@nolato.com, www.nolato.com