Nolato B

Quarterly Report • Apr 27, 2009

Nolato AB (publ) three-month interim report 2009 Continued strong cash flow

■ First quarter 2009 in brief

• Sales fell by 12% to SEK 606 million (690)
• Operating income (EBITA) fell to SEK 16 million (59)
• Net income was SEK 4 million (41)
• Earnings per share were SEK 0.15 (1.56)
• Strong cash flow after investments: SEK 56 million (47)
• Continued strong growth for Nolato Medical
• Costs relating to staff cut-backs at Nolato Industrial will total SEK 15 million, being charged to the second quarter
• Payment of SEK 35 million from the BenQ bankruptcy will be reported during the second quarter of 2009

SEK millions unless otherwise specified	Q1 2009	Q1 2008	Rolling 12 months	Full year 2008
Net sales	606	690	2,740	2,824
Operating income (EBITDA) 1)	56	100	355	399
Operating income (EBITA) 2)	16	59	197	240
EBITA margin, %	2.6	8.6	7.2	8.5
Income after financial items	6	53	169	216
Net income	4	41	141	178
Earnings per share before and after dilution, SEK*	0.15	1.56	5.36	6.77
Adjusted earnings per share, SEK * 3)	0.23	1.63	5.59	6.99
Average number of shares, thousands*	26,307	26,307	26,307	26,307
Cash flow after investments, excl. acquisitions and disposals	56	47	305	296
Net investments affecting cash flow, excl. acquisitions and disposals	17	44	128	155
Return on capital employed, %	—	—	14.7	18.4
Return on shareholders' equity, %	—	—	14.2	18.4
Equity/assets ratio, %	54	46	—	50
Net debt	28	265	—	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.

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

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

■ Sales per quarter

■ Sales Q1 2007– 2009

■ Op. income (EBITA) Q1 2007– 2009

First quarter 2009

• Sales fell by 12% to SEK 606 million (690)
• Operating income (EBITA) was SEK 16 million (59)
• Strong growth for Nolato Medical

■ Sales

Group sales during the first quarter totalled SEK 606 million (690), corresponding to a reduction of 12%. Currency exchange rate differences had a positive impact on sales of around 7%.

Nolato Medical saw sales grow to SEK 178 million (147), corresponding to organic growth of 21% compared with the same period during the previous year including currency effects. Excluding currency conversion effects, sales rose by 18%. Volumes were good during the quarter for most of the business area's customer segments, and were not affected by the current economic conditions.

Nolato Telecom's sales dropped by 20% to SEK 226 million (284). Excluding currency conversion effects, sales fell by 36%. As announced in the ninemonth interim report for 2008 and in the year-end report, changes made by one of the business area's main customers to its product range had a negative impact on sales.

Nolato Industrial's sales dropped by 21% to SEK 206 million (260). All customer segments – particularly the automotive industry – experienced extremely low volumes during the quarter.

■ Income

The Group's operating income (EBITA) was SEK 16 million (59).

Nolato Medical's operating income (EBITA) was SEK 24 million (21), Nolato Telecom's was SEK 0 million (25) and Nolato Industrial's was SEK –1 million (19).

Nolato Medical's EBITA margin was 13.5% (14.3%).

Nolato Telecom's EBITA margin was 0% (8.8%). The margin was affected mainly by low levels of capacity utilisation.

Nolato Industrial's EBITA margin stood at –0.5% (7.3%). The margin was affected mainly by low levels of capacity utilisation.

Overall, the Group's EBITA margin fell to 2.6% (8.6%).

Currency effects, i.e. conversion effects and transaction effects, have had a negative impact on income of around SEK –5 million (–3) during the first quarter.

Operating income (EBIT) was SEK 14 million (57).

Income after financial items was SEK 6 million (53). Net financial items included SEK –6 million (0) in currency exchange rate difference effects during the first quarter, most of which related to unrealised translation differences for loans in foreign currencies for operations outside Sweden.

Net income was SEK 4 million (41). Earnings per share before and after dilution stood at SEK 0.15 (1.56). Adjusted earnings per share excluding

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

SEK millions	Sales Q1/2009	Sales Q1/2008	Operating income (EBITA) Q1/2009	Operating income (EBITA) Q1/2008*	EBITA margin Q1/2009	EBITA margin Q1/2008*
Nolato Medical	178	147	24	21	13.5%	14.3%
Nolato Telecom	226	284	0	25	0.0%	8.8%
Nolato Industrial	206	260	– 1	19	– 0.5%	7.3%
Group adjustments, Parent Co.	– 4	– 1	– 7	– 6	—	—
Group total	606	690	16	59	2.6%	8.6%

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

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

amortisation of intangible assets arising from acquisitions were SEK 0.23 (1.63). The effective tax rate for the period was 33% (23%), and was estimated to be around 25% for the year as a whole.

The return on capital employed was 14.7% for the last twelve months (18.4% for the 2008 calendar year). The return on operating capital was 16.5% for the last twelve months (19.7% for the 2008 calendar year).

■ Nolato Medical

Sales and earnings (SEK millions)
Three months		2009 2008
Sales	178	147
Operating income (EBITA)	24	21
EBITA margin (%)	13.5	14.3
Operating income (EBIT)	23	20

Nolato Medical saw sales rise to SEK 178 million (147). This corresponds to an increase of 21% compared with the same period during the previous year. Sales accounted for 29% (21%) of the Group's entire sales.

Operating income (EBITA) rose to SEK 24 million (21). The EBITA margin was 13.5% (14.3%).

Market trends remain positive, with more and more customers demanding larger, global partners, thus benefitting Nolato Medical.

■ Nolato Telecom

Sales and earnings (SEK millions)
Three months	2009	2008
Sales	226	284
Operating income (EBITA)	0	25
EBITA margin (%)	0.0	8.8
Operating income (EBIT)	0	25

Nolato Telecom's sales totalled SEK 226 million (284), a drop of 20 percent compared with the same period during the previous year. Sales accounted for 37% (41%) of the Group's entire sales.

Operating income (EBITA) was SEK 0 million (25). The EBITA margin was 0% (8.8%).

Nolato Telecom has a strong product portfolio, and new projects were received during the quarter.

Nolato's Board has decided to set up a small converting unit in Chennai, India, for the production of adhesive products for mobile phones. The investment is expected to total around SEK 10 million over a period of three years.

Outlook for Nolato Telecom

Nolato Telecom has a strong product portfolio. As announced in the ninemonth interim report for 2008, one of the business area's main customers has made changes to its future product range, leading to Nolato Telecom having to revise its production start-up times for these products. As a result, it is thought that the business area will record markedly lower sales for the first six months of 2009 compared with the corresponding period for 2008, resulting in an operating income of around zero for the first six months of 2009.

■ Nolato Industrial

Sales and earnings (SEK millions)
Three months	2009	2008
Sales	206	260
Operating income (EBITA)	– 1	19
EBITA margin (%)	– 0.5	7.3
Operating income (EBIT)	– 2	18

Nolato Industrial's sales dropped by 21% to SEK 206 million (260). Sales accounted for 34% (38%) of the Group's entire sales.

Operating income (EBITA) was SEK –1 million (19). The EBITA margin was –0.5% (7.3%).

Nolato Industrial has decided to implement further staff cut-backs in order to adapt its costs in line with the prevailing levels of demand (see "Events after the balance sheet date").

■ Cash flow

Cash flow before investments totalled SEK 73 million (91). The change in working capital was a positive SEK 49 million (5).

Cash flow after investments was SEK 56 million (47). Net investments affecting cash flow totalled SEK 17 million (44).

■ Financial position

Interest-bearing assets totalled SEK 189 million (78) and interest-bearing liabilities and provisions totalled SEK 217 million (352). The market value of derivatives for interest-bearing liabilities was SEK 0 million (+9). Net debt thus totalled SEK 28 million (265). Shareholders' equity was SEK 1,075 million (909). The equity/assets ratio was 54% (46%). Adjusted to take the proposed dividend of SEK 72 million into account, the equity/assets ratio was 52% (44%).

■ Personnel

The average number of employees

during the period was 3,370 (4,831). The number of employees has fallen significantly within Nolato Telecom in particular, but has also dropped within Nolato Industrial.

■ Events after the balance sheet date In order to adapt its operations further according to the current economic climate, Nolato has decided to reduce its workforce by around 60 people. These reductions will affect the Nolato Industrial business area, and will result in costs being cut by around SEK 25 million on a yearly basis, with effect from the second quarter of the year.

In connection with the insolvency

and subsequent bankruptcy of former customer BenQ, Nolato made a provision of SEK 125 million during the fourth quarter of 2006, corresponding to the total outstanding financial risk relating to BenQ. Nolato has now received a payment of SEK 35 million from the bankruptcy estate.

This means that Nolato will report a one-off income item of SEK 35 million during the second quarter. At the same time, there will be an impact of around SEK 15 million on operating income as a result of the abovementioned staff cutbacks. Overall, there will therefore be a positive impact of SEK 20 million on Nolato's operating income and SEK 15

■ Consolidated performance analysis

SEK millions	Q1 2009	Q1 2008	Full year 2008
Net sales	606	690	2,824
Gross income excl. depreciation/amortisation	113	146	595
As a percentage of net sales	18.6	21.1	21.1
Costs	– 57	– 46	– 196
As a percentage of net sales	9.4	6.7	6.9
Operating income (EBITDA)	56	100	399
As a percentage of net sales	9.2	14.5	14.1
Depreciation and amortisation	– 40	– 41	– 159
Operating income (EBITA)	16	59	240
As a percentage of net sales	2.6	8.6	8.5
Amortisation of intangible assets arising from acquisitions	– 2	– 2	– 8
Operating income (EBIT)	14	57	232
Financial items	– 8	– 4	– 16
Income after financial items	6	53	216
Tax	– 2	– 12	– 38
As a percentage of income after financial items	33.3	22.6	17.6
Net income	4	41	178

■ Financial position

SEK millions	31/03/2009	31/03/2008	31/12/2008
Interest-bearing liabilities, credit institutions	127	264	174
Interest-bearing pension liabilities	90	88	89
Market value of derivatives	—	– 9	—
Total borrowings	217	343	263
Cash and bank	– 189	– 78	– 168
Net debt	28	265	95
Working capital	82	188	103
As a percentage of sales (avg.) (%)	4.9	7.9	5.2
Capital employed	1,291	1,261	1,321
Return on capital employed (avg.) (%)	14.7	16.7	18.4
Shareholders' equity	1,075	909	1,058
Return on shareholders' equity (avg.) (%)	14.2	20.4	18.4

million on net income during the second quarter, corresponding to a positive net effect of SEK 0.57 per share.

■ Significant risks and uncertainty factors

The business risks and risk management of the Group and the Parent Company, along with the management of financial risks, are described in the 2008 Annual Report on pages 32–33, and in Note 4 on pages 50–51. No significant events have occurred during the period which would significantly affect or change these descriptions of the Group's 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 6,720 shareholders as at 31 March 2008. 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 31% of the capital, with Skandia Liv, Svolder and Lannebo Fonder being the largest. The ten largest shareholders hold 63% of the share capital and 81% of the votes.

■ The Parent Company

Sales totalled SEK 10 million (8). The increase in sales is a result of higher costs levied on subsidiaries. Income before tax totalled SEK –1 million (–4). The increase in income is due to a rise in sales and higher income from shares in Group companies.

■ 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 accordance with the provisions of RFR 2.2, Accounting for Legal Entities.

The new or revised IFRS standards or IFRIC interpretations which 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 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 information schedule

• Six-month interim report 2009: 21 July 2009
• Nine-month interim report 2009: 27 October 2009

Torekov, 27 April 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 April 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 statements (summary)

SEK millions	Q1 2009	Q1 2008	Rolling 12 months	Full year 2008
Net sales	606	690	2,740	2,824
Cost of goods sold	– 532	– 584	– 2,333	– 2,385
Gross profit	74	106	407	439
Selling expenses	– 20	– 16	– 71	– 67
Administrative expenses	– 34	– 33	– 141	– 140
Other operating expenses	– 6	0	– 6	0
	– 60	– 49	– 218	– 207
Operating income	14	57	189	232
Financial items	– 8	– 4	– 20	– 16
Income after financial items	6	53	169	216
Tax	– 2	– 12	– 28	– 38
Net income	4	41	141	178
All earnings are attributable to the Parent Company's shareholders
Depreciation/amortisation	42	43	166	167
Earnings per share before and after dilution (SEK)	0.15	1.56	5.36	6.77
Number of shares at the end of the period (thousands)	26,307	26,307	26,307	26,307
Average number of shares (thousands)	26,307	26,307	26,307	26,307

■ Comprehensive income

SEK millions	Q1 2009	Q1 2008	Rolling 12 months	Full year 2008
Net income	4	41	141	178
Other comprehensive income
Translation differences for the period	13	– 13	106	80
Cash flow hedges	0	0	– 3	– 3
Tax attributable to cash flow hedges	0	0	1	1
Other comprehensive income, net of tax	13	– 13	104	78
Total comprehensive inc. for the period attributable to the Parent Co.'s shareholders	17	28	245	256

■ Balance sheets (summary)

SEK millions	31/03/2009	31/03/2008	31/12/2008
Assets
Fixed assets
Intangible fixed assets	376	381	377
Tangible fixed assets	738	731	767
Other securities held as fixed assets	2	—	2
Deferred tax assets	19	16	20
Total fixed assets	1,135	1,128	1,166
Current assets
Inventories	201	225	238
Accounts receivable	414	488	513
Other current assets	65	48	41
Cash and bank	189	78	168
Total current assets	869	839	960
Total assets	2,004	1,967	2,126
Shareholders' equity	1,075	909	1,058
Long-term liabilities and provisions 1)	200	217	200
Short-term liabilities and provisions 1)	729	841	868
Total liabilities and provisions	929	1,058	1,068
Total shareholders' equity and liabilities	2,004	1,967	2,126
1) Interest-bearing/non-interest-bearing liabilities and provisions:
Interest-bearing liabilities and provisions	217	352	263
Non-interest-bearing liabilities and provisions	712	706	805
Total liabilities and provisions	929	1,058	1,068

■ Change in shareholders' equity

SEK millions	Q1 2009	Q1 2008	Full year 2008
Shareholders' equity at the beginning of the period	1,058	881	881
Total comprehensive income for the period	17	28	256
Dividends	—	—	– 79
Shareholders' equity at the end of the period attributable to the Parent Company's shareholders	1,075	909	1,058

During 2008, a dividend totalling SEK 79 million was paid to the Parent Company's shareholders, corresponding to SEK 3.00 per share. The proposed dividend to be decided on at the Annual Meeting on 27 April 2009 is SEK 2.75 per share.

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

■ Cash flow statements (summary)

Q1 2009	Q1 2008	Rolling 12 months	Full year 2008
24	86	303	365
49	5	130	86
73	91	433	451
– 17	– 44	– 116	– 143
56	47	317	308
– 42	– 29	– 228	– 215
14	18	89	93
168	62		62
7	– 2		13
189	78		168

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

■ Earnings per share

SEK millions	Q1 2009	Q1 2008	Rolling 12 months	Full year 2008
Net income	4	41	141	178
Adjusted earnings:
Amortisation of intangible assets arising from acquisitions	2	2	8	8
Tax on amortisation	0	0	– 2	– 2
Adjusted earnings	6	43	147	184
Average number of shares (thousands)*	26,307	26,307	26,307	26,307
Earnings per share before and after dilution (SEK)*	0.15	1.56	5.36	6.77
Adjusted earnings per share (SEK)*	0.23	1.63	5.59	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
	2008	690	694	693	747	2,824
Operating income (EBITDA) (SEK millions)	2009	56
	2008	100	103	101	95	399
Operating income (EBITA) (SEK millions)	2009 2008	16 59	61	64	56	240
EBITA margin (%)	2009	2.6
	2008	8.6	8.8	9.2	7.5	8.5
Operating income (EBIT) (SEK millions)	2009	14
	2008	57	59	62	54	232
Income after financial items (SEK millions)	2009	6
	2008	53	59	57	47	216
Net income (SEK millions)	2009 2008	4 41	46	45	46	178
Cash flow after inv., excl. acq. and disp. (SEK millions)	2009	56
	2008	47	19	78	152	296
Earnings per share before and after dilution (SEK)	2009	0.15
	2008	1.56	1.75	1.71	1.75	6.77
Adjusted earnings per share (SEK)	2009	0.23
	2008	1.63	1.79	1.75	1.82	6.99
Average number of shares (thousands)	2009	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
	2008	147	158	156	171	632
Nolato Telecom	2009 2008	226 284	277	318	364	1 243
Nolato Industrial	2009	206
	2008	260	259	219	212	950
Group adjustments, Parent Company	2009	– 4
	2008	– 1	0	0	0	– 1
Group total	2009	606
	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
EBITA margin (%)	2008	13.5 21	21	20	27	89
EBITA margin (%)		14.3	13.3	12.8	15.8	14.1
Nolato Telecom	2009	0
EBITA margin (%)		0.0
	2008	25	22	35	32	114
EBITA margin (%)		8.8	7.9	11.0	8.8	9.2
Nolato Industrial	2009	– 1
EBITA margin (%)		– 0.5
	2008	19	21	15	0	55
EBITA margin (%) Group adjustments, Parent Company	2009	7.3 – 7	8.1	6.8	0.0	5.8
	2008	– 6	– 3	– 6	– 3	– 18
Group total	2009	16
EBITA margin (%)		2.6
	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
	2008	10	10	10	11	41
Nolato Telecom	2009	18
Nolato Industrial	2008 2009	19 13	20	16	17	72
	2008	14	14	13	13	54
Group total	2009	42
	2008	43	44	39	41	167

■ Group financial highlights

	Q1 2009	Q1 2008	Rolling 12 months	Full year 2008
Net sales (SEK millions)	606	690	2,740	2,824
Sales growth (%)	– 12	26	7	17
Percentage of sales outside Sweden (%)	70	65	70	68
Operating income (EBITDA) (SEK millions)	56	100	355	399
Operating income (EBITA) (SEK millions)	16	59	197	240
EBITA margin (%)	2.6	8.6	7.2	8.5
Income after financial items (SEK millions)	6	53	169	216
Profit margin (%)	1.0	7.7	6.2	7.6
Net income (SEK millions)	4	41	141	178
Return on total capital (%)	—	—	9.4	11.8
Return on capital employed (%)	—	—	14.7	18.4
Return on operating capital (%)	—	—	16.5	19.7
Return on shareholders' equity (%)	—	—	14.2	18.4
Equity/assets ratio (%)	54	46	—	50
Debt/equity ratio (%)	20	39	—	25
Interest coverage ratio (times)	3	10	10	11
Investments affecting cash flow, excl. acquisitions and disposals (SEK millions)	17	44	128	155
Cash flow after investments, excl. acquisitions and disposals (SEK millions)	56	47	305	296
Net debt (SEK millions)	28	265	—	95
Earnings per share before and after dilution (SEK)	0.15	1.56	5.36	6.77
Adjusted earnings per share (SEK)	0.23	1.63	5.59	6.99
Cash flow per share (SEK)	2.13	1.79	12.05	11.71
Shareholders' equity per share (SEK)	41	35	—	40
Number of shares at the end of the period (thousands)	26,307	26,307	26,307	26,307
Average number of shares (thousands)	26,307	26,307	26,307	26,307
Average number of employees	3,370	4,831	—	4,531

Definitions

Adjusted earnings per share

Net income, excluding non-recurring items and 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, depreciation/amortisation and non-recurring items.

Operating income (EBITA)

Earnings before interest and taxes, excluding non-recurring items 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	Q1 2009	Q1 2008	Rolling 12 months	Full year 2008
Net sales	10	8	24	22
Selling expenses	– 3	– 2	– 10	– 9
Administrative expenses	– 9	– 9	– 39	– 39
Other operating income	1	—	1	—
Operating income	– 1	– 3	– 24	– 26
Result from shares in Group companies	4	—	– 87	– 91
Financial income	2	3	11	12
Financial expenses	– 6	– 4	– 19	– 17
Income after financial items	– 1	– 4	– 119	– 122
Appropriations	—	—	– 42	– 42
Tax	0	1	17	18
Net income	– 1	– 3	– 144	– 146
Depreciation/amortisation	0	0	0	0

■ Parent Company balance sheets (summary)

SEK millions	31/03/2009	31/03/2008	31/12/2008
Assets
Financial fixed assets	825	992	839
Deferred tax assets	3	2	2
Total fixed assets	828	994	841
Other current assets	227	177	245
Cash and bank	24	20	53
Total current assets	251	197	298
Total assets	1,079	1,191	1,139
Shareholders' equity	712	777	713
Untaxed reserves	72	30	72
Other provisions	2	2	2
Long-term liabilities	40	286	21
Current liabilities Total shareholders' equity and liabilities	253 1,079	96 1,191	331 1,139
Collateral pledged	—	—	—

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–Mar 2009	10	– 4	2	0	4	338	185
Subsidiary	Jan–Mar 2008	8	– 3	1	– 1	—	378	157

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