Nolato B

Quarterly Report • Oct 27, 2009

Nolato AB (publ) nine-month interim report 2009

Strong growth for Nolato Telecom Efficiency improvement measures produce intended results

• Third quarter of 2009 in brief
• Sales fell by 6% to SEK 653 million (693)
• Operating income (EBITA) was SEK 48 million (64)
• Net income was SEK 33 million (45)
• Earnings per share were SEK 1.26 (1.71)
• Cash flow after investments was SEK –31 million (78)
• First nine months of 2009 in brief
• Sales fell by 13% to SEK 1,816 million (2,077)
• Operating income (EBITA) was SEK 103 million (184)
• Earnings per share were SEK 2.51 (5.02)

SEK millions unless otherwise specified	Q3 2009	Q3 2008	Q1 – Q3 2009	Q1 – Q3 2008	Rolling 12 months	Full year 2008
Net sales	653	693	1,816	2,077	2,563	2,824
Operating income (EBITDA) 1)	84	101	217	304	312	399
Operating income (EBITA) 2)	48	64	103	184	159	240
EBITA margin, %	7.4	9.2	5.7	8.9	6.2	8.5
Income after financial items	42	57	90	169	137	216
Net income	33	45	66	132	112	178
Earnings per share before and after dilution, SEK*	1.26	1.71	2.51	5.02	4.26	6.77
Adjusted earnings per share, SEK* 3)	1.29	1.75	2.66	5.17	4.48	6.99
Average number of shares, thousands*	26,307	26,307	26,307	26,307	26,307	26,307
Cash flow after investments, excl. acquisitions and disposals	– 31	78	60	144	212	296
Net investments affecting cash flow, excl. acquisitions and disposals	49	46	80	127	108	155
Return on capital employed, %	—	—	—	—	11.3	18.4
Return on shareholders' equity, %	—	—	—	—	11.2	18.4
Equity/assets ratio, %	—	—	52	45	—	50
Net debt	—	—	120	250	—	95

■ Group highlights

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

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

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

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

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

■ Sales by quarter

Third quarter 2009

• ⁸⁰⁰ Sales fell by 6% to SEK 653 million (693)
• Operating income (EBITA) was SEK 48 million (64)
• Strong growth for Nolato Telecom
• Efficiency improvement measures at Nolato Industrial produced the intended results

■ Sales

The Group's sales during the third quarter totalled SEK 653 million (693), representing a 6% drop compared with the corresponding period during the previous year. Currency exchange rate differences had a positive impact on sales of around 8%.

Nolato Medical saw sales grow to SEK 159 million (156), corresponding to growth of 2% including currency effects. Excluding currency conversion effects, sales rose by 1%. Volumes were affected by significant summer holiday effects at the beginning of the quarter.

Nolato Telecom's sales dropped by 3% to SEK 309 million (318). Excluding currency conversion effects, sales fell by 20%. Although changes made by one of the business area's main customers to its product range had a negative impact during the first six months, production of new products began as planned during the third quarter. The project portfolio remains healthy.

Nolato Industrial's sales dropped by 16% to SEK 185 million (219). In most customer segments, volumes have stabilised at a low level. However, the time margin for planning remains short.

■ Income

The Group's operating income (EBITA) was SEK 48 million (64).

Nolato Medical's operating income (EBITA) was SEK 20 million (20), Nolato Telecom's was SEK 24 million (35) and Nolato Industrial's was SEK 9 million (15).

Nolato Medical's EBITA margin was 12.6% (12.8%), and Nolato Telecom's EBITA margin was 7.8% (11.0%).

Nolato Industrial's EBITA margin stood at 4.9% (6.8%), and was affected mainly by low levels of capacity utilisation.

Overall, the Group's EBITA margin was 7.4% (9.2%).

Currency effects, i.e. conversion effects and transaction effects, had a negative impact on income of around SEK – 4 million (6) during the third quarter.

Operating income (EBIT) was SEK 46 million (62).

Income after financial items was SEK 42 million (57). Net financial items included SEK 0 million (1) in currency exchange rate difference effects, most of which related to unrealised translation differences for loans in foreign currencies for operations outside Sweden.

Net income was SEK 33 million (45). Earnings per share before and after dilution stood at SEK 1.26 (1.71). Adjusted earnings per share excluding amortisation of intangible assets aris-

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

SEK M	Sales Q3/2009	Sales Q3/2008	Op. income (EBITA) Q3/2009	Op. income (EBITA) Q3/2008*	EBITA margin Q3/2009	EBITA margin Q3/2008*
Nolato Medical	159	156	20	20	12.6%	12.8%
Nolato Telecom	309	318	24	35	7.8%	11.0%
Nolato Industrial	185	219	9	15	4.9%	6.8%
Group adjustments, Parent Co.	0	0	– 5	– 6	—	—
Group total	653	693	48	64	7.4%	9.2%

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

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

ing from acquisitions were SEK 1.29 (1.75). The effective tax rate was 21% (21%).

The rate of investment was higher during the second half of the year compared with the first half. Increased levels

Nine months 2009

■ Sales and earnings

The Group's sales during the first nine months of 2009 totalled SEK 1,816 million (2,077), which was 13% lower than during the corresponding period in the previous year. Currency effects had a positive impact on sales of around 8%.

The Group's operating income (EBITA) was SEK 103 million (184). The EBITA margin was 5.7% (8.9%). The bankruptcy payment from BenQ had a positive effect of SEK 35 million on earnings, while costs connected with efficiency improvement measures carried out totalled SEK 15 million during the second quarter. Excluding both of these non-recurring items, the EBITA margin was 4.6% (8.9%).

Operating income (EBIT) was SEK 97 million (178).

Income after financial items was SEK 90 million (169). Net financial items included SEK 0 million (5) in currency exchange rate difference effects, most of which related to translation differences for loans in foreign currencies for operations outside Sweden.

Net income was SEK 66 million (132). Earnings per share were SEK 2.51 (5.02). Adjusted earnings per share excluding amortisation of intangible assets arising from acquisitions were SEK 2.66 (5.17). The effective tax rate was 27% (22%).

The return on capital employed was 11.3% for the last twelve months (18.4% for the 2008 calendar year). The return on operating capital was 12.7% for the last twelve months (19.7% for the 2008 calendar year).

of activity within Nolato Telecom have also led to a greater need for working capital. In addition, a one-off tax payment of SEK 16 million was made. This has had an impact on cash flow during the quarter.

■ Nolato Medical

Sales and income (SEK millions)
Nine months		2009 2008
Sales	514	461
Operating income (EBITA)	67	62
EBITA margin (%)	13.0	13.4
Operating income (EBIT)	63	58

Nolato Medical saw sales rise to SEK 514 million (461). This corresponds to an increase of 11% compared with the same period during the previous year. Excluding currency conversion effects, sales rose by 8%. Sales accounted for 28% (22%) of the Group's entire sales.

Operating income (EBITA) rose to SEK 67 million (62). The EBITA margin was 13.0% (13.4%). Nolato Medical is continuing to invest in being able to offer new and existing customers a wider range of project management and technical resources, as well as systems deliveries. Combined with a change in the product mix, these investments explain the slightly lower margin compared with the corresponding period in the previous year.

■ Nolato Telecom

Sales and income (SEK millions)
Nine months	2009	2008
Sales	718	879
Operating income (EBITA)	56	82
EBITA margin (%)	7.8	9.3
Operating income (EBIT)	56	82

Nolato Telecom's sales totalled SEK 718 million (879), a drop of 18% compared with the same period during the previous year. Excluding currency conversion effects, sales fell by 35%. Sales accounted for 40% (42%) of the Group's entire sales. Changes made by one of the business area's main customers to

its product range had a negative impact during the first six months. Production of new products began as planned during the third quarter. The production structure features a high degree of flexibility.

Operating income (EBITA) was SEK 56 million (82). The EBITA margin was 7.8% (9.3%). Excluding the bankruptcy payment from BenQ, the EBITA margin was 2.9% (9.3%). The margin was affected mainly by low levels of capacity utilisation during the first six months.

As announced in the report for the first quarter, Nolato Telecom has decided to set up a small converting unit in Chennai, India. Production is expected to begin towards the end of this year, and the investment will total SEK 10 million over a three-year period. This project is progressing according to plan.

■ Nolato Industrial

Sales and income (SEK millions)
Nine months	2009	2008
Sales	588	738
Operating income (EBITA)	1	55
EBITA margin (%)	0.2	7.5
Operating income (EBIT)	– 1	53

Nolato Industrial's sales dropped by 20% to SEK 588 million (738). Sales accounted for 32% (36%) of the Group's entire sales.

Nolato Industrial is continuing to win market shares, and new project start-ups have gone some way towards compensating for the generally weak levels of demand.

Operating income (EBITA) was SEK 1 million (55). The EBITA margin was 0.2% (7.5%). Costs connected with efficiency improvement measures totalling SEK 12 million were charged to income. Excluding these costs, the EBITA margin stood at 2.2% (7.5%). The measures in question have now been carried out, and had full effect during the second and third quarters.

■ Cash flow

Cash flow before investments totalled SEK 140 million (271), affected mainly by lower earnings. The change in working capital was a negative SEK –11 million (0), as a result of higher levels of activity at Nolato Telecom during the third quarter.

Cash flow after investments was SEK 60 million (144). The bankruptcy payment from BenQ is included in the cash flow. Net investments affecting cash flow totalled SEK 80 million (127).

■ Financial position

Interest-bearing assets totalled SEK 83 million (140) and interest-bearing liabilities and provisions totalled SEK 203 million (405). The market value of derivatives for interest-bearing liabilities was SEK 0 million (+15). Net debt thus totalled SEK 120 million (250). Shareholders' equity stood at SEK 1,027 million (968). The equity/assets ratio was 52% (45%).

During the second quarter, dividends totalling SEK 72 million were paid to shareholders.

■ Personnel

The average number of employees during the period was 4,478 (4,571).

■ Significant risks and uncertainty factors

The business risks and risk management of the Group and the Parent Company, along with the management of financial

SEK millions	Q3 2009	Q3 2008	Q1–Q3 2009	Q1–Q3 2008	Rolling 12 months	Full year 2008
Net sales	653	693	1,816	2,077	2,563	2,824
Gross income excl. depreciation/amortisation	126	146	331	441	485	595
As a percentage of net sales	19.3	21.1	18.2	21.2	18.9	21.1
Costs	– 42	– 45	– 114	– 137	– 173	– 196
As a percentage of net sales	6.4	6.5	6.3	6.6	6.7	6.9
Operating income (EBITDA)	84	101	217	304	312	399
As a percentage of net sales	12.9	14.6	11.9	14.6	12.2	14.1
Depreciation and amortisation	– 36	– 37	– 114	– 120	– 153	– 159
Operating income (EBITA)	48	64	103	184	159	240
As a percentage of net sales	7.4	9.2	5.7	8.9	6.2	8.5
Amortisation of intang. assets arising from acquisitions	– 2	– 2	– 6	– 6	– 8	– 8
Operating income (EBIT)	46	62	97	178	151	232
Financial items	– 4	– 5	– 7	– 9	– 14	– 16
Income after financial items	42	57	90	169	137	216
Tax	– 9	– 12	– 24	– 37	– 25	– 38
As a percentage of income after financial items	21.4	21.1	26.7	21.9	18.2	17.6
Net income	33	45	66	132	112	178

■ Consolidated performance analysis

risks, are described in the 2008 Annual Report on pages 32–33, and in Note 4 on pages 50–51.

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

■ Ownership and legal structure

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

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

Nolato had 6,588 shareholders as at 30 September 2009. The largest shareholders were the Paulsson family with 12% of the share capital, the Jorlén family with 11%, and the Boström family with 9%. The next largest shareholders were seven institutional investors, who together owned an additional 28% of the capital, with Lannebo Fonder, Svolder and If Skadeförsäkring being the largest. The ten largest shareholders hold 60% of the share capital and 80% of the votes.

■ The Parent Company

Sales totalled SEK 17 million (19). The drop in sales is a result of lower costs levied on subsidiaries. Income before tax totalled SEK 58 million (–22). This increase is mainly due to higher dividends from subsidiaries.

■ Accounting and valuation principles

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

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

The consolidated interim report has been prepared in accordance with IAS 34 (Interim Financial Reporting). The applicable provisions of the Swedish Annual Accounts Act and the Swedish Securities Market Act have also been applied.

The Parent Company interim report has been prepared in accordance with the Swedish Annual Accounts Act and the Swedish Securities Market Act, in line with the provisions of RFR 2.2, Accounting for Legal Entities.

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

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

■ Financial position

SEK millions	30/09/2009	30/09/2008	31/12/2008
Interest-bearing liabilities, credit institutions	113	315	174
Interest-bearing pension liabilities	90	90	89
Market value of derivatives	—	– 15	—
Total borrowings	203	390	263
Cash and bank	– 83	– 140	– 168
Net debt	120	250	95
Working capital	125	190	103
As a percentage of sales (avg.) (%)	6.1	7.3	5.2
Capital employed	1,230	1,373	1,321
Return on capital employed (avg.) (%)	11.3	18.7	18.4
Shareholders' equity	1,027	968	1,058
Return on shareholders' equity (avg.) (%)	11.2	22.0	18.4

■ The Nomination Committee

It was resolved at Nolato's Annual Meeting on 27 April 2009 that the Company should have a Nomination Committee consisting of one representative for each of the five largest shareholders in terms of number of votes as at the end of September.

Following discussions with the five largest shareholders, the following have been elected to Nolato's Nomination Committee ahead of the 2010 Annual Meeting:

• Henrik Jorlén, chairman,
• representing the Jorlén family – Gun Boström,
• representing the Boström family

– Erik Paulsson,

• representing the Paulsson family – Johan Lannebo,
• representation Lannebo Fonder

– Magnus Molin, representating Svolder.

■ Annual Meeting

The Annual Meeting will be held on 28 April 2010. Any shareholders who wish to submit proposals to the Nomination Committee can contact one of the Nomination Committee representatives by e-mail:

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

■ Financial information schedule

• 2009 year-end report: 1 February 2010
• Three-month interim report 2010: 28 April 2010
• 2010 Annual Meeting: 28 April 2010
• Six-month interim report 2010: 21 July 2010
• Nine-month interim report 2010: 26 October 2010

Torekov, 27 October 2009 Nolato AB (publ) Hans Porat President and CEO

The information contained in this interim report is the information which Nolato must make public in accordance with the Swedish Securities Market Act and/or the Swedish Financial Instruments Trading Act. This information was made public on 27 October 2009 at 2:00 pm.

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

For further information please contact:

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

■ Income statement (summary)

SEK millions	Q3 2009	Q3 2008	Q1–Q3 2009	Q1–Q3 2008	Rolling 12 months	Full year 2008
Net sales	653	693	1,816	2,077	2,563	2,824
Cost of goods sold	– 562	– 582	– 1,596	– 1,752	– 2,229	– 2,385
Gross profit	91	111	220	325	334	439
Selling expenses	– 13	– 15	– 54	– 47	– 74	– 67
Administrative expenses	– 28	– 34	– 93	– 100	– 133	– 140
Other operating income	0	—	36	—	36	—
Other operating expenses	– 4	—	– 12	—	– 12	—
	– 45	– 49	– 123	– 147	– 183	– 207
Operating income	46	62	97	178	151	232
Financial items	– 4	– 5	– 7	– 9	– 14	– 16
Income after financial items	42	57	90	169	137	216
Tax	– 9	– 12	– 24	– 37	– 25	– 38
Net income	33	45	66	132	112	178
All earnings are attributable to the Parent Co.'s shareholders
Depreciation/amortisation	38	39	120	126	161	167
Earnings per share before and after dilution (SEK)	1.26	1.71	2.51	5.02	4.26	6.77
Number of shares at the end of the period (thousands)	26,307	26,307	26,307	26,307	26,307	26,307
Average number of shares (thousands)	26,307	26,307	26,307	26,307	26,307	26,307

■ Comprehensive income

SEK millions	Q3 2009	Q3 2008	Q1–Q3 2009	Q1–Q3 2008	Rolling 12 months	Full year 2008
Net income	33	45	66	132	112	178
Other comprehensive income
Translation differences for the period	– 27	36	– 28	34	18	80
Cash flow hedges	3	0	4	0	1	– 3
Tax attributable to cash flow hedges	– 1	0	– 1	0	0	1
Other comprehensive income, net of tax	– 25	36	– 25	34	19	78
Total com. inc. for the period attrib. to the Parent Co.'s shareh.	8	81	41	166	131	256

■ Balance sheets (summary)

SEK millions	30/09/2009	30/09/2008	31/12/2008
Assets
Fixed assets
Intangible fixed assets	373	379	377
Tangible fixed assets	727	767	767
Other securities held as fixed assets	2	2	2
Other long-term receivables	1	0	0
Deferred tax assets	28	19	20
Total fixed assets	1,131	1,167	1,166
Current assets
Inventories	223	241	238
Accounts receivable	498	549	513
Other current assets	57	63	41
Cash and bank	83	140	168
Total current assets	861	993	960
Total assets	1,992	2,160	2,126
Shareholders' equity	1,027	968	1,058
Long-term liabilities and provisions 1)	201	210	200
Short-term liabilities and provisions 1)	764	982	868
Total liabilities and provisions	965	1,192	1,068
Total shareholders' equity and liabilities	1,992	2,160	2,126
1) Interest-bearing/non-interest-bearing liabilities and provisions:
Interest-bearing liabilities and provisions	203	405	263
Non-interest-bearing liabilities and provisions	762	787	805
Total liabilities and provisions	965	1,192	1,068

■ Change in shareholders' equity

SEK millions	Q1–Q3 2009	Q1–Q3 2008	Full year 2008
Shareholders' equity at the beginning of the period	1,058	881	881
Total comprehensive income for the period	41	166	256
Dividends	– 72	– 79	– 79
Shareholders' equity at the end of the period attributable to the Parent Company's shareholders	1,027	968	1,058

During 2009, a dividend totalling SEK 72 million (79) was paid to the Parent Company's shareholders, corresponding to SEK 2.75 per share (3.00). The Group does not have any incentive programmes resulting in a dilutive effect.

■ Cash flow statements (summary)

SEK millions	Q3 2009	Q3 2008	Q1–Q3 2009	Q1–Q3 2008	Rolling 12 months	Full year 2008
Cash flow from operating activities before changes in working capital	65	91	151	271	245	365
Changes in working capital	– 47	33	– 11	0	75	86
Cash flow from operations	18	124	140	271	320	451
Cash flow from investment activities	– 49	– 46	– 80	– 127	– 96	– 143
Cash flow before financing activities	– 31	78	60	144	224	308
Cash flow from financing activities	48	6	– 136	– 72	– 279	– 215
Cash flow for the period	17	84	– 76	72	– 55	93
Liquid funds at the beginning of the period	75	49	168	62	—	62
Exchange rate difference in liquid funds	– 9	7	– 9	6	—	13
Liquid funds at the end of the period	83	140	83	140	—	168

Full-year 2008 and rolling 12 months include the sale of property totalling SEK 12 million.

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

■ Earnings per share

SEK millions	Q3 2009	Q3 2008	Q1–Q3 2009	Q1–Q3 2008	Rolling 12 months	Full year 2008
Net income	33	45	66	132	112	178
Adjusted earnings:
Amortisation of intangible assets arising from acquisitions	2	2	6	6	8	8
Tax on amortisation	– 1	– 1	– 2	– 2	– 2	– 2
Adjusted earnings	34	46	70	136	118	184
Average number of shares (thousands)*	26,307	26,307	26,307	26,307	26,307	26,307
Earnings per share before and after dilution (SEK)*	1.26	1.71	2.51	5.02	4.26	6.77
Adjusted earnings per share (SEK)*	1.29	1.75	2.66	5.17	4.48	6.99

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

■ Five-year overview

	2008	2007	2006	2005	2004
Net sales (SEK millions)	2,824	2,421	2,702	2,256	2,401
Operating income (EBITA), excluding non-recurring items (SEK millions)	240	204	209	221	201
EBITA margin excluding non-recurring items (%)	8.5	8.4	7.7	9.8	8.4
Operating income (EBIT) (SEK millions)	232	190	78	221	201
Operating income (EBIT), excluding non-recurring items (SEK millions)	232	197	208	221	201
Income after financial items (SEK millions)	216	171	69	208	185
Net income (SEK millions)	178	150	48	181	136
Return on capital employed (%)	18.4	16.3	7.4	21.0	18.9
Return on capital employed excluding non-recurring items (%)	18.4	16.9	19.4	21.0	18.9
Return on shareholders' equity (%)	18.4	18.0	5.9	24.2	22.1
Equity/assets ratio (%)	50	46	46	50	41
Earnings per share (SEK)	6.77	5.70	1.82	6.88	5.15
Adjusted earnings per share (SEK)	6.99	5.32	6.08	6.31	5.15

■ Quarterly data

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

■ Group financial highlights

	Q3 2009	Q3 2008	Q1–Q3 2009	Q1–Q3 2008	Rolling 12 months	Full year 2008
Net sales (SEK millions)	653	693	1,816	2,077	2,563	2,824
Sales growth (%)	– 6	11	– 13	16	– 5	17
Percentage of sales outside Sweden (%)	77	71	72	67	72	68
Operating income (EBITDA) (SEK millions)	84	101	217	304	312	399
Operating income (EBITA) (SEK millions)	48	64	103	184	159	240
EBITA margin (%)	7.4	9.2	5.7	8.9	6.2	8.5
Income after financial items (SEK millions)	42	57	90	169	137	216
Profit margin (%)	6.4	8.2	5.0	8.1	5.3	7.6
Net income (SEK millions)	33	45	66	132	112	178
Return on total capital (%)	—	—	—	—	7.1	11.8
Return on capital employed (%)	—	—	—	—	11.3	18.4
Return on operating capital (%)	—	—	—	—	12.7	19.7
Return on shareholders' equity (%)	—	—	—	—	11.2	18.4
Equity/assets ratio (%)	—	—	52	45	—	50
Debt/equity ratio (%)	—	—	20	42	—	25
Interest coverage ratio (times)	12	8	13	10	15	11
Net investments affecting cash flow, excl. acq. and disposals (SEK millions)	49	46	80	127	108	155
Cash flow after investments, excl. acq. and disposals (SEK millions)	– 31	78	60	144	212	296
Net debt (SEK millions)	—	—	120	250	—	95
Earnings per share before and after dilution (SEK)	1.26	1.71	2.51	5.02	4.26	6.77
Adjusted earnings per share (SEK)	1.29	1.75	2.66	5.17	4.48	6.99
Cash flow per share (SEK)	– 1.18	2.96	2.28	5.47	8.52	11.71
Shareholders' equity per share (SEK)	—	—	39	37	—	40
Number of shares at the end of the period (thousands)	26,307	26,307	26,307	26,307	26,307	26,307
Average number of shares (thousands)	26,307	26,307	26,307	26,307	26,307	26,307
Average number of employees	—	—	4,478	4,571	—	4,531

Definitions

Adjusted earnings per share

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

Cash flow per share

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

Debt/equity ratio

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

EBITA margin

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

Earnings per share

Net income, divided by average number of shares.

Equity/assets ratio

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

Interest coverage ratio

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

Net debt

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

Operating income (EBITDA)

Earnings before interest, taxes and depreciation/amortisation.

Operating income (EBITA)

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

Operating income (EBIT)

Income before tax, financial income and expenses.

Profit margin

Income after financial items as a percentage of net sales.

Return on total capital

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

Return on capital employed

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

Return on operating capital

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

Return on shareholders' equity

Net income as a percentage of average shareholders' equity.

■ Parent Company income statements

SEK millions	Q3 2009	Q3 2008	Q1–Q3 2009	Q1–Q3 2008	Rolling 12 months	Full year 2008
Net sales	4	9	17	19	20	22
Selling expenses	– 2	– 2	– 8	– 5	– 12	– 9
Administrative expenses	– 8	– 12	– 26	– 31	– 34	– 39
Other operating expenses	– 1	—	– 5	—	– 5	—
Operating income	– 7	– 5	– 22	– 17	– 31	– 26
Result from shares in Group companies	13	—	79	—	– 12	– 91
Financial income	2	4	5	9	8	12
Financial expenses	– 2	– 4	– 4	– 14	– 7	– 17
Income after financial items	6	– 5	58	– 22	– 42	– 122
Appropriations	–	–	–	–	– 42	– 42
Tax	2	1	6	6	18	18
Net income	8	– 4	64	– 16	– 66	– 146
Depreciation/amortisation	0	0	0	0	0	0

■ Parent Company balance sheets (summary)

SEK millions	30/09/2009	30/09/2008	31/12/2008
Assets
Financial fixed assets	851	906	839
Deferred tax assets	3	2	2
Total fixed assets	854	908	841
Other receivables	42	136	245
Cash and bank	21	33	53
Total current assets	63	169	298
Total assets	917	1,077	1,139
Shareholders' equity	704	689	713
Untaxed reserves	72	30	72
Other provisions	2	2	2
Long-term liabilities	20	—	21
Current liabilities	119	356	331
Total shareholders' equity and liabilities	917	1,077	1,139
Collateral pledged	—	—	—
Contingent liabilities	96	137	144

Transactions with related parties:

Related party Period		Services sold	Services purchased	Interest income	Interest expenses	Result from shares in Group companies	Rec. from related parties on the bal. sheet date	Liab. to related parties on the bal. sheet date
Subsidiary	Jan–Sep 2009	17	– 11	5	0	79	173	70
Subsidiary	Jan–Sep 2008	19	– 8	5	– 4	—	238	88

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

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