Nolato B

Quarterly Report • Oct 24, 2013

Nolato AB (publ) nine-month interim report 2013

Earnings remain strong with solid return on capital

Third quarter of 2013 in brief

• ‒ Sales rose by 12% to SEK 1,119 million (999)
• ‒ Operating profit (EBITA) rose by 23% to SEK 103 million (84)
• ‒ Profit after tax was SEK 74 million (52)
• ‒ Earnings per share increased to SEK 2.81 (1.98)
• ‒ Cash flow after investments was SEK 61 million (83)
• ‒ Decision to expand in Hungary
• First nine months of 2013 in brief
• ‒ Sales increased to SEK 3,537 million (2,882)
• ‒ Operating profit (EBITA) increased to SEK 336 million (222)
• ‒ Earnings per share were SEK 9.01 (5.44)
• ‒ Cash flow after investments was SEK 197 million (107), excluding acquisitions
• ‒ Reduced net debt was SEK 75 million (323)

Group highlights

					Full year
2013	2012	2013	2012	12 months	2012
1,119	999	3,537	2,882	4,529	3,874
136	118	440	326	558	444
103	84	336	222	417	303
9.2	8.4	9.5	7.7	9.2	7.8
97	74	315	199	388	272
74	52	237	143	296	202
2.81	1.98	9.01	5.44	11.25	7.68
2.93	2.13	9.35	5.74	11.74	8.13
61	83	197	107	409	317
31	38	92	125	125	159
25.5	17.8	25.5	17.8	25.5	19.4
25.2	15.9	25.2	15.9	25.2	17.7
45	43	45	43	45	44
75	323	75	323	75	114
	Q3 Note 1 1 1 1	Q3	Q1 - Q3	Q1 - Q3	Rolling

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

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

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

3) Adjusted earnings per share: Profit after tax, 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 latter shall prevail.

Third quarter 2013

• High margin and solid return on capital
• Sales increased 12% to SEK 1,119 million (999)
• Operating profit (EBITA) increased by 23% to SEK 103 million (84)
• Stable cash flow and solid financial position

Sales

Group sales totalled SEK 1,119 million (999), representing an increase of 12% compared with the corresponding period of the previous year. Even adjusted for currency, sales increased by 12%.

Nolato Medical's sales rose 8% to SEK 310 million (288); adjusted for currency sales increased 8%, which was well in line with market growth.

Nolato Telecom's sales rose 16% to SEK 516 million (444); adjusted for currency, sales increased 16%. In the second half of the year, gradual product changeovers to the new product portfolio are in progress, with a slightly higher proportion of materials.

Nolato Industrial's sales rose 9% to SEK 293 million (268); adjusted for currency, sales increased 9%. Volumes were stable and during the holiday period, there was higher demand this year than in the same period last year.

Nolato's Board has resolved on the extension of the Hungarian factory by a further 3,700 square metres in order to enable further future expansion in medical and industrial.

Profit

Consolidated operating profit (EBITA) rose 23% to SEK 103 million (84). The increase in sales, combined with a positive margin increase for the Medical and Industrial business areas, generated profit growth for the Group.

Nolato Medical's operating profit (EBITA) rose to SEK 41 million (32), Nolato Telecom's earnings amounted to SEK 35 million (35) and Nolato Industrial's rose to SEK 33 million (24).

Nolato Medical's EBITA margin rose to 13.2% (11.1). The margin was positively affected by a favourable product mix. Nolato Telecom's EBITA margin was 6.8% (7.9). A gradually new product portfolio with a slightly higher proportion of materials had a negative effect on the margin. Nolato Industrial's EBITA margin was a very strong 11.3% (9.0). High productivity and a favourable product mix had a positive effect on the margin. Overall, the Group's EBITA margin was a strong 9.2% (8.4). Margin increases for Nolato Medical and Nolato Industrial in particular affected the margin.

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

	Sales	Sales	Op. profit	Op. profit	EBITA margin	EBITA margin
SEK million	Q3/2013	Q3/2012	EBITA Q3/2013	EBITA Q3/2012	Q3/2013	Q3/2012
Nolato Medical	310	288	41	32	13.2%	11.1%
Nolato Telecom	516	444	35	35	6.8%	7.9%
Nolato Industrial	293	268	33	24	11.3%	9.0%
Intra-Group adj., Parent Co	0	– 1	– 6	– 7	—	—
Group total	1,119	999	103	84	9.2%	8.4%

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

Operating profit (EBIT) rose to SEK 99 million (79).

Profit after net financial income/expense was SEK 97 million (74). Net financial income/expense included exchange rate fluctuations affecting earnings by SEK 0 million (-1).

Profit after tax increased to SEK 74 million (52). Earnings per share, basic and diluted, stood at SEK 2.81 (1.98). Adjusted earnings per share excluding amortisation of intangible assets arising from acquisitions were SEK 2.93 (2.13).

First nine months 2013

Sales and earnings

Consolidated sales rose 23% to SEK 3,537 million (2,882) in the first nine months of 2013. Even adjusted for currency and acquisitions, sales rose by 23%.

Nolato Medical's sales rose by 13% to SEK 961 million (849), of which SEK 68 million is attributable to acquisitions. Nolato Telecom's sales rose by 46% to SEK 1,684 million (1,154) and Nolato Industrial's by 1% to SEK 892 million (881).

Consolidated operating profit (EBITA) increased to SEK 336 million (222) and the EBITA margin was 9.5% (7.7) Operating profit (EBIT) was SEK 324 million (211).

Profit after net financial income/expense was SEK 315 million (199).

Profit after tax was SEK 237 million (143). Earnings per share, basic and diluted, rose 66% to SEK 9.01 (5.44). Adjusted earnings per share excluding amortisation of intangible assets arising from acquisitions were SEK 9.35 (5.74). The effective tax rate was 25% (28).

The return on capital employed was 25.5% for the last twelve months (19.4% for the 2012 calendar year). Return on equity was 25.2% for the last twelve months (17.7% for the 2012 calendar year).

Nolato Medical

Sales and profit Q1-Q3 (SEK million)	2013	2012
Sales	961	849
Operating profit (EBITA)	126	99
EBITA margin (%)	13.1	11.7
Operating profit (EBIT)	116	90

Nolato Medical saw sales rise to SEK 961 million (849), corresponding to growth of 13%. Adjusted for currency and acquisitions, sales rose by 9%. Most of the business area's customer segments enjoyed solid volumes.

Operating profit (EBITA) rose to SEK 126 million (99). The EBITA margin was 13.1% (11.7). The margin was positively affected by a favourable product mix.

The extension of the Chinese factory is proceeding according to plan.

Nolato Telecom

Sales and profit Q1-Q3 (SEK million)	2013	2012
Sales	1,684	1,154
Operating profit (EBITA)	135	63
EBITA margin (%)	8.0	5.5
Operating profit (EBIT)	135	63

Nolato Telecom's sales rose by a full 46% to SEK 1,684 million (1,154). Adjusted for currency, sales increased by 49%. Volumes were very high, particularly in the first quarter and in the first part of the second quarter, with several products enjoying very strong demand. Start-ups of new customer projects were implemented as planned and are gradually increasingly replacing the product portfolio.

Operating profit (EBITA) rose to SEK 135 million (63). The EBITA margin was 8.0% (5.5). The high capacity utilisation level and a favourable product mix had a positive impact on the margin.

Nolato Industrial

Sales and profit Q1-Q3 (SEK million)	2013	2012
Sales	892	881
Operating profit (EBITA)	92	81
EBITA margin (%)	10.3	9.2
Operating profit (EBIT)	90	79

Nolato Industrial's sales rose by 1% to SEK 892 million (881). Adjusted for currency, sales increased by 2%. The economic unease that emerged at the end of the third quarter of the previous year continued to affect demand in the first half of the year. Volumes in the automotive segment were lower, while certain other segments such as hygiene have contributed positively. In the holiday period, demand was higher than in the same period of the previous year.

Operating profit (EBITA) totalled SEK 92 million (81), with a strong EBITA margin of 10.3% (9.2). High productivity and a favourable product mix had a positive effect on the margin.

The positive earnings trend led cash flow before investments to rise to SEK 289 million (231). Working capital rose as a consequence of the increased sales. The change in working capital was a negative SEK 42 million (-34).

Cash flow after investment activities totalled SEK 197 million (-71 including acquisitions, 107 excluding acquisitions). Net investments affecting cash flow totalled SEK 92 million (302, of which the acquisition of Cope Allman Jaycare accounted for SEK 178 million).

Interest-bearing assets totalled SEK 256 million (115), and interest-bearing liabilities and provisions totalled SEK 331 million (438). Net debt thus totalled SEK 75 million (323). Net debt fell from the same period of the previous year, when there was a financing requirement for the acquisition of Cope Allman Jaycare. Shareholders' equity was SEK 1,250 million (1,108). The equity/assets ratio was 45% (43). In the second quarter of the year, dividends totalling SEK 158 million (132) were paid out.

Excluding acquisitions and disposals

	Q3	Q3	Q1 - Q3	Q1 - Q3	Rolling	Full year
SEK million	2013	2012	2013	2012	12 months	2012
Net sales	1,119	999	3,537	2,882	4,529	3,874
Gross profit excl. depreciation/amortisation	193	171	608	489	777	658
As a percentage of net sales	17.2	17.1	17.2	17.0	17.2	17.0
Costs	– 57	– 53	– 168	– 163	– 219	– 214
As a percentage of net sales	5.1	5.3	4.8	5.7	4.8	5.5
Operating profit (EBITDA)	136	118	440	326	558	444
As a percentage of net sales	12.2	11.8	12.4	11.3	12.3	11.5
Depreciation and amortisation	– 33	– 34	– 104	– 104	– 141	– 141
Operating profit (EBITA)	103	84	336	222	417	303
As a percentage of net sales	9.2	8.4	9.5	7.7	9.2	7.8
Amortisation of intang. assets arising from acquisitions	– 4	– 5	– 12	– 11	– 17	– 16
Operating profit (EBIT)	99	79	324	211	400	287
Financial income and expense	– 2	– 5	– 9	– 12	– 12	– 15
Profit after financial income and expense	97	74	315	199	388	272
Tax	– 23	– 22	– 78	– 56	– 92	– 70
As a percentage of Profit after financial income and expense	23.7	29.7	24.8	28.1	23.7	25.7
Profit after tax	74	52	237	143	296	202

Consolidated performance analysis

Financial position

SEK million	Note	30/09/2013	30/09/2012	31/12/2012
Interest-bearing liabilities, credit institutions		200	307	255
Interest-bearing pension liabilities		131	131	131
Total borrowings		331	438	386
Cash and bank		– 256	– 115	– 272
Net debt	1	75	323	114
Working capital		145	250	93
As a percentage of sales (avg.) (%)		4.4	5.2	3.4
Capital employed	1	1,581	1,546	1,556
Return on capital employed (avg.) (%)	1	25.5	17.8	19.4
Shareholders' equity	1	1,250	1,108	1,170
Return on shareholders' equity (avg.) (%)	1	25.2	15.9	17.7

Personnel

The average number of employees during the period was 10,085 (8,354). The increase in the number of employees is attributable to Nolato Telecom in China and arose as a result of higher volumes.

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 2012 Annual Report on pages 35 – 37 and in Note 4 on pages 49 – 50.

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

Events after the balance sheet date

Nolato's Board has resolved on the extension of the Hungarian factory by a further 3,700 square metres in order to enable further future expansion. No other significant events have occurred since the end of the period.

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 is listed on the NASDAQ OMX Nordic Exchange in the Stockholm Mid Cap segment and are included under the Industrials sector.

The number of shareholders was 8,301 as of 30 September. The largest shareholders were the Jorlén family with 10%, the Boström family with 9%, Svolder with 5%, Odin Fonder with 4%, the Paulsson family with 4% and Skandia Fonder with 4% of the share capital.

The Parent Company

For the Parent Company, which has no operational activities, sales amounted to SEK 20 million (18). Profit after financial income and expense amounted to SEK 6 million (0). The improved earnings are primarily the result of lower financial expenses.

Accounting and valuation principles

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

The consolidated interim report was prepared in accordance with IAS 34 (Interim Financial Reporting) and applicable provisions of the Swedish Annual Accounts Act. The Swedish Securities Market Act was applied for publishing this interim report.

The consolidated accounts were prepared in accordance with the same principles as the latest annual report, except for the change concerning the reporting of pension obligations and other comprehensive income. Pension obligations are recognised in accordance with the amended IAS 19, as stated in note 1, while other comprehensive income is recognised in accordance with the change of IAS 1 Presentation of financial statements.

The new or revised IFRS standards or IFRIC interpretations that entered into force on 1 January 2013 have not, with the exception concerning reporting of pension obligations, had any material effect on the Group's income statements or balance sheets.

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

Nomination Committee Contact:

In accordance with a decision at Nolato's AGM on 25 April 2013, the five largest shareholders in terms of the number of votes at the end of September 2013 have appointed the following individuals to be included in Nolato's Nomination Committee ahead of the 2014 AGM: Henrik Jorlén (chairman), Gun Boström, Erik Paulsson and Ulf Hedlundh (Svolder).

Any shareholders who wish to submit proposals to the Nomination Committee may contact the chairman Henrik Jorlén by e-mail, henrik.jorlen@gmail.com, or regular mail addressed to Kommendörsgatan 4, 269 77 Torekov, Sweden.

Annual General Meeting

The Annual General Meeting will be held on 28 April 2014.

Financial calendar

• 2013 year-end report: 4 February 2014
• Three-month interim report 2014: 28 April 2014
• 2014 Annual General Meeting: 28 April 2014
• Six-month interim report 2014: 21 July 2014
• Nine-month interim report 2014: 28 October 2014

Torekov, 24 October 2013 Nolato AB (publ) Hans Porat, President and CEO

• Hans Porat, President and CEO, tel. +4670 5517550.
• Per-Ola Holmström, CFO, tel. +4670 5763340.

The information contained in this interim report is the information which Nolato is obliged to make public in accordance with the Swedish Securities Market Act and/or the Swedish Financial Instruments Trading Act. This information was made public on 24 October 2013 at 2:30 PM.

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

Consolidated income statement (summary)

	Q3	Q3	Q1 - Q3	Q1 - Q3	Rolling	Full year
SEK million	2013	2012	2013	2012	12 months	2012
Net sales	1,119	999	3,537	2,882	4,529	3,874
Cost of goods sold	– 958	– 866	– 3,030	– 2,494	– 3,889	– 3,353
Gross profit	161	133	507	388	640	521
Other operating income	– 1	1	4	2	13	11
Selling expenses	– 23	– 14	– 66	– 57	– 91	– 82
Administrative expenses	– 38	– 37	– 121	– 112	– 165	– 156
Other operating expenses	—	– 4	—	– 10	3	– 7
	– 62	– 54	– 183	– 177	– 240	– 234
Operating profit	99	79	324	211	400	287
Financial income and expense	– 2	– 5	– 9	– 12	– 12	– 15
Profit after financial income and expense	97	74	315	199	388	272
Tax	– 23	– 22	– 78	– 56	– 92	– 70
Profit after tax	74	52	237	143	296	202
All earnings are attrib. to the Parent Co.'s shareholders
Depreciation/amortisation	37	39	116	115	158	157
Earnings per share, basic and diluted (SEK)	2.81	1.98	9.01	5.44	11.25	7.68
Number of shares at the end of the period	26,307,408	26,307,408	26,307,408	26,307,408	26,307,408	26,307,408
Average number of shares	26,307,408	26,307,408	26,307,408	26,307,408	26,307,408	26,307,408

Consolidated comprehensive income

	Note	Q3	Q3	Q1 - Q3	Q1 - Q3	Rolling	Full year
SEK million		2013	2012	2013	2012	12 months	2012
Profit after tax		74	52	237	143	296	202
Other comprehensive income
Items that cannot be transferred to profit for the period
Revaluations of defined benefit pension plans	1	0	0	0	0	1	1
Tax attributable to items that cannot be transfered to profit for the period	1	0	0	0	0	– 2	– 2
		0	0	0	0	– 1	– 1
Items that have been converted or can be converted into
profit for the period
Translation differences for the period		– 14	– 19	0	– 21	4	– 17
Cash flow hedges	2	2	1	1	1	1	1
Tax attributable to cash flow hedges	2	0	0	0	0	0	0
		– 12	– 18	1	– 20	5	– 16
Other comprehensive income, net of tax		– 12	– 18	1	– 20	4	– 17
Total comp. income for the period attributable to the Parent Co.'s shareholders		62	34	238	123	300	185

Reconciliation of consolidated profit before tax

	Q1 - Q3	Q1 - Q3	Rolling	Full year
SEK million	2013	2012	12 months	2012
Operating profit (EBIT)
Nolato Medical	116	90	146	120
Nolato Telecom	135	63	168	96
Nolato Industrial	90	79	113	102
Group adjustments, Parent Company	– 17	– 21	– 27	– 31
Consolidated operating profit (EBIT)	324	211	400	287
Financial income and expense (not distributed by business areas)	– 9	– 12	– 12	– 15
Consolidated profit before tax	315	199	388	272

Consolidated balance sheet (summary)

SEK million	Note	30/09/2013	30/09/2012	31/12/2012
Assets
Fixed assets
Intangible fixed assets		537	562	553
Property, plant and equipment		718	728	735
Other securities held as non-current assets		2	2	2
Other long-term receivables		2	2	2
Deferred tax assets		35	34	35
Total fixed assets		1,294	1,328	1,327
Current assets
Inventories		277	270	288
Accounts receivable		850	754	682
Other current assets	2	91	93	65
Cash and bank		256	115	272
Total current assets		1,474	1,232	1,307
Total assets		2,768	2,560	2,634
Shareholders' equity and liabilities
Shareholders' equity	1, 2	1,250	1,108	1,170
Long-term liabilities and provisions 1)	1	164	163	164
Deferred tax liabilities 1)	1	81	116	104
Current liabilities and provisions 1)	2	1,273	1,173	1,196
Total liabilities and provisions		1,518	1,452	1,464
Total shareholders' equity and liabilities		2,768	2,560	2,634
1) Interest-bearing/non-interest-bearing liabilities and provisions:
Interest-bearing liabilities and provisions		331	438	386
Non-interest-bearing liabilities and provisions		1,187	1,014	1,078
Total liabilities and provisions		1,518	1,452	1,464

Changes in consolidated shareholders' equity (summary)

Q1 - Q3	Q1 - Q3	Full year
2013	2012	2012
1,170	1,117	1,117
238	123	185
– 158	– 132	– 132
1,250	1,108	1,170

In 2013, a dividend totalling SEK 158 million was paid to the Parent Company's shareholders, corresponding to an ordinary dividend of SEK 3.50 and extraordinary dividend of SEK 2.50, totalling SEK 6.00 per share. The Group does not have any incentive programmes resulting in a dilutive effect.

Consolidated cash flow statement (summary)

	Q3	Q3	Q1 - Q3	Q1 - Q3	Rolling	Full year
SEK million	2013	2012	2013	2012	12 months	2012
Cash flow from op. activities bef. changes in work. cap.	113	98	331	265	453	387
Changes in working capital	– 21	22	– 42	– 34	81	89
Cash flow from operating activities	92	120	289	231	534	476
Cash flow from investment activities	– 31	– 37	– 92	– 302	– 125	– 335
Cash flow before financing activities	61	83	197	– 71	409	141
Cash flow from financing activities	– 143	– 104	– 212	66	– 266	12
Cash flow for the period	– 82	– 21	– 15	– 5	143	153
Liquid assets at the beginning of the period	346	140	272	124	—	124
Exchange rate difference in liquid assets	– 8	– 4	– 1	– 4	—	– 5
Liquid assets at the end of the period	256	115	256	115	—	272

Earnings per share

	Q3	Q3	Q1 - Q3	Q1 - Q3	Rolling	Full year
SEK million	2013	2012	2013	2012	12 months	2012
Profit after tax	74	52	237	143	296	202
Adjusted earnings:
Amortisation of intangible assets arising from acquis.	4	5	12	11	17	16
Tax on amortisation	– 1	– 1	– 3	– 3	– 4	– 4
Adjusted earnings	77	56	246	151	309	214
Average number of shares *	26,307,408	26,307,408	26,307,408	26,307,408	26,307,408	26,307,408
Earnings per share, basic and diluted (SEK) *	2.81	1.98	9.01	5.44	11.25	7.68
Adjusted earnings per share (SEK) *	2.93	2.13	9.35	5.74	11.74	8.13

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

Five-year overview

	Note	2012	2011	2010	2009	2008
Net sales (SEK million)		3,874	2,977	3,375	2,602	2,824
Operating profit (EBITA) (SEK million)		303	199	262	166	240
EBITA margin (%)		7.8	6.7	7.8	6.4	8.5
Operating profit (EBIT) (SEK million)		287	190	253	158	232
Profit after financial income and expense (SEK million)		272	183	243	148	216
Profit after tax (SEK million)		202	132	187	123	178
Cash flow after investments, excl. acq. and disposals (SEK million)		317	112	230	139	296
Return on capital employed (%) *	1	19.4	13.9	18.4	12.1	18.4
Return on shareholders' equity (%) *	1	17.7	11.6	16.5	11.5	18.4
Net debt (SEK million) *	1	114	119	34	40	95
Equity/assets ratio (%) *	1	44	52	50	51	50
Earnings per share (SEK)		7.68	5.02	7.11	4.68	6.77
Adjusted earnings per share (SEK)		8.13	5.28	7.37	4.90	6.99
Dividend per share (SEK)		6.00	5.00	6.00	3.00	2.75
Average number of employees		8,421	5,496	7,563	4,308	4,531

* The years 2008 - 2010 have not been restated for the amendment of pension provisions in IAS 19, which means that the corridor method to even out actuarial gains / losses no longer applies (see note 1).

Quarterly data (summary)

	Note		Q1	Q2	Q3	Q4	Full year
Net sales (SEK million)		2013	1,254	1,164	1,119	—	—
		2012	837	1,046	999	992	3,874
		2011	759	766	718	734	2,977
Operating profit (EBITDA) (SEK million)		2013	157	147	136	—	—
		2012	91	117	118	118	444
		2011	79	88	111	82	360
Operating profit (EBITA) (SEK million)		2013	122	111	103	—	—
		2012	57	81	84	81	303
		2011	44	53	54	48	199
EBITA margin (%)		2013	9.7	9.5	9.2	—	—
		2012	6.8	7.7	8.4	8.2	7.8
		2011	5.8	6.9	7.5	6.5	6.7
Operating profit (EBIT) (SEK million)		2013	118	107	99	—	—
		2012	55	77	79	76	287
		2011	42	51	51	46	190
Profit after financial income and expense (SEK million)		2013	113	105	97	—	—
		2012	51	74	74	73	272
		2011	38	50	50	45	183
Profit after tax (SEK million)		2013	85	78	74	—	—
		2012	37	54	52	59	202
		2011	28	35	36	33	132
Cash flow after inv., excl. acq. and disp. (SEK million)		2013	16	120	61	—	—
		2012	– 32	56	83	210	317
		2011	111	– 36	48	– 11	112
Earnings per share, basic and diluted (SEK)		2013	3.23	2.97	2.81	—	—
		2012	1.41	2.05	1.98	2.24	7.68
		2011	1.06	1.33	1.37	1.25	5.02
Adjusted earnings per share (SEK)		2013	3.35	3.07	2.93	—	—
		2012	1.44	2.17	2.13	2.39	8.13
		2011	1.10	1.41	1.44	1.33	5.28
Shareholders' equity per share (SEK)	1	2013	47	45	48	—	—
		2012	43	41	42	44	44
		2011	44	39	41	42	42
Return on total capital (%)		2013	13.6	13.7	15.0	—	—
		2012	9.4	9.8	10.9	11.9	11.9
		2011	10.9	10.0	9.4	8.7	8.7
Return on capital employed (%) *	1	2013	23.3	23.0	25.5	—	—
		2012	15.2	15.9	17.8	19.4	19.4
		2011	17.6	16.4	15.0	13.9	13.9
Return on operating capital (%) *	1	2013	26.3	26.9	28.8	—	—
		2012	16.9	17.2	19.6	22.6	22.6
		2011	20.6	18.6	16.2	15.5	15.5
Return on shareholders' equity (%) *	1	2013	20.9	24.2	25.2	—	—
		2012	12.3	15.2	15.9	17.7	17.7
		2011	14.6	14.0	12.7	11.6	11.6

* Q1 - Q3 for 2011 have not been restated for the amendment of pension provisions in IAS 19, which means that the corridor method to even out actuarial gains / losses no longer applies (see note 1).

Quarterly data business areas

Net sales (SEK million)			Q1	Q2	Q3	Q4	Full year
Nolato Medical		2013	328	323	310	—	—
		2012	246	315	288	310	1,159
		2011	232	235	220	230	917
Nolato Telecom		2013	627	541	516	—	—
		2012	287	423	444	394	1,548
		2011	259	249	220	207	935
Nolato Industrial		2013	299	300	293	—	—
		2012	304	309	268	289	1,170
Group adjustments, Parent Company		2011 2013	268 0	283 0	279 0	299 —	1,129 —
		2012	0	– 1	– 1	– 1	– 3
		2011	—	– 1	– 1	– 2	– 4
Group total		2013	1,254	1,164	1,119	—	—
		2012	837	1,046	999	992	3,874
		2011	759	766	718	734	2,977
Operating profit (EBITA) (SEK million)			Q1	Q2	Q3	Q4	Full year
Nolato Medical		2013	43	42	41	—	—
	EBITA margin (%)		13.1	13.0	13.2	—	—
		2012	31	36	32	34	133
	EBITA margin (%)		12.6	11.4	11.1	11.0	11.5
		2011	28	29	25	28	110
	EBITA margin (%)		12.1	12.3	11.4	12.2	12.0
Nolato Telecom		2013	57	43	35	—	—
	EBITA margin (%)		9.1	7.9	6.8	—	—
		2012	7	21	35	33	96
	EBITA margin (%)		2.4	5.0	7.9	8.4	6.2
		2011	– 4	4	7	4	11
	EBITA margin (%)		– 1.5	1.6	3.2	1.9	1.2
Nolato Industrial		2013	29	30	33	—	—
	EBITA margin (%)		9.7	10.0	11.3	—	—
		2012	28	29	24	24	105
	EBITA margin (%)		9.2	9.4	9.0	8.3	9.0
		2011	25	27	26	24	102
	EBITA margin (%)		9.3	9.5	9.3	8.0	9.0
Group adjustments, Parent Company		2013	– 7	– 4	– 6	—	—
		2012	– 9	– 5	– 7	– 10	– 31
		2011	– 5	– 7	– 4	– 8	– 24
Group total		2013	122	111	103	—	—
	EBITA margin (%)		9.7	9.5	9.2	—	—
		2012	57	81	84	81	303
	EBITA margin (%)		6.8	7.7	8.4	8.2	7.8
		2011	44	53	54	48	199
	EBITA margin (%)		5.8	6.9	7.5	6.5	6.7
Depreciation/amortisation (SEK million)			Q1	Q2	Q3	Q4	Full year
Nolato Medical		2013	18	20	18	—	—
		2012	15	18	19	20	72
		2011	14	16	14	15	59
Nolato Telecom		2013	10	10	9	—	—
		2012	10	10	10	11	41
		2011	13	10	35	10	68
Nolato Industrial		2013	11	10	10	—	—
		2012	11	12	10	11	44
		2011	10	11	11	11	43
Group total		2013 2012	39 36	40 40	37 39	— 42	— 157
		2011	37	37	60	36	170

Group financial highlights

	Note	Q3	Q3	Q1 - Q3	Q1 - Q3	Rolling	Full year
		2013	2012	2013	2012	12 months	2012
Net sales (SEK million)		1,119	999	3,537	2,882	4,529	3,874
Sales growth (%)		12	39	23	28	25	30
Percentage of sales outside Sweden (%)		81	79	81	74	82	75
Operating profit (EBITDA) (SEK million)		136	118	440	326	558	444
Operating profit (EBITA) (SEK million)		103	84	336	222	417	303
EBITA margin (%)		9.2	8.4	9.5	7.7	9.2	7.8
Profit after financial income and expense (SEKm)		97	74	315	199	388	272
Profit margin (%)		8.7	7.4	8.9	6.9	8.6	7.0
Profit after tax (SEK million)		74	52	237	143	296	202
Return on total capital (%)		15.0	10.9	15.0	10.9	15.0	11.9
Return on capital employed (%)	1	25.5	17.8	25.5	17.8	25.5	19.4
Return on operating capital (%)	1	28.8	19.6	28.8	19.6	28.8	22.6
Return on shareholders' equity (%)	1	25.2	15.9	25.2	15.9	25.2	17.7
Equity/assets ratio (%)	1	45	43	45	43	45	44
Debt/equity (%)	1	26	40	26	40	26	33
Interest coverage ratio (times)		41	22	37	22	38	23
Net investments affecting cash flow, excl. acq. and disposals		31	38	92	125	125	159
(SEK million)
Cash flow after inv., excl. acq. and disp. (SEKm)		61	83	197	107	409	317
Net debt (SEK million)	1	75	323	75	323	75	114
Earnings per share, basic and diluted (SEK)		2.81	1.98	9.01	5.44	11.25	7.68
Adjusted earnings per share (SEK)		2.93	2.13	9.35	5.74	11.74	8.13
Cash flow per share, excl. acq. and disposals (SEK)		2.32	3.16	7.49	4.07	15.55	12.05
Shareholders' equity per share (SEK)	1	—	—	48	42	—	44
Average number of employees		—	—	10,085	8,354	—	8,421

Definitions

Return on total capital Earnings per share

Profit after financial income and expense, plus financial expenses as a percentage of average total capital in the balance sheet.

Return on capital employed

Profit after financial income and expense, plus financial expenses as a percentage of financial expenses. average capital employed. Capital employed consists of total capital less non-interestbearing liabilities and provisions. Earnings before interest, taxes and depreciation/amortisation.

Return on operating capital Operating profit (EBITA)

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.

EBITA margin

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

Adjusted earnings per share

Profit after tax, excluding amortisation of intangible assets arising from acquisitions, divided by the average number of shares. Profit after financial income and expense as a percentage of net sales.

Cash flow per share

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

Net debt

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

Profit after tax, divided by average number of shares.

Interest coverage ratio

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

Operating profit (EBITDA)

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

Operating profit (EBIT)

Earnings before interest and taxes.

Debt/equity ratio

Equity/assets ratio Interest-bearing liabilities and provisions divided by shareholders' equity.

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

Profit margin

Parent Company income statement (summary)

	Q3	Q3	Q1 - Q3	Q1 - Q3	Rolling	Full year
SEK million	2013	2012	2013	2012	12 months	2012
Net sales	7	6	20	18	21	19
Other operating income	0	—	2	—	2	—
Selling expenses	– 2	– 1	– 6	– 5	– 8	– 7
Administrative expenses	– 10	– 7	– 33	– 27	– 48	– 42
Other operating expenses	—	– 1	—	– 2	– 1	– 3
Operating profit	– 5	– 3	– 17	– 16	– 34	– 33
Profit from participations in Group companies	6	12	13	16	48	51
Financial income	4	9	16	19	22	25
Financial expenses	– 2	– 15	– 6	– 19	– 23	– 36
Profit after financial income and expense	3	3	6	0	13	7
Appropriations	—	—	—	—	149	149
Tax	0	0	– 10	0	– 49	– 39
Profit after tax	3	3	– 4	0	113	117
Depreciation/amortisation	0	0	0	0	0	0

Parent Company balance sheet (summary)

SEK million	30/09/2013	30/09/2012	31/12/2012
Assets
Intangible fixed assets	1	1	1
Property, plant and equipment	0	0	0
Financial assets	966	990	994
Deferred tax assets	8	7	4
Total fixed assets	975	998	999
Other receivables	236	313	472
Cash and bank	60	4	42
Total current assets	296	317	514
Total assets	1,271	1,315	1,513
Shareholders' equity and liabilities
Shareholders' equity	736	783	899
Untaxed reserves	179	160	179
Other provisions	6	5	5
Long-term liabilities	—	17	17
Current liabilities	350	350	413
Total shareholders' equity and liabilities	1,271	1,315	1,513
Pledged assets	—	—	—
Contingent liabilities	107	196	110

Transactions with related parties:

Related party	Period	Services	Services	Interest	Interest	Res. from shares	Rec. fr. rel. part.	Liab. to rel. part.
		sold	bought	income	expenses	in Group comp.	on bal. sh. date	on bal. sh. date
Subsidiary	Jan-Sep 2013	20	– 3	17	0	13	623	126
Subsidiary	Jan-Sep 2012	18	– 3	19	– 1	16	727	106

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

Nolato AB, SE-269 04 Torekov, Sweden • Tel. +46 431 442290 • Fax +46 431 442291 Corp. id. number 556080-4592 • E-mail info@nolato.se • Website www.nolato.com

NOTES

Note 1 Change in provisions for pensions in IAS 19 regarding defined benefit pension plans

The amendment to IAS 19 regarding defined benefit pension plans applies to fiscal years starting on 1 January 2013 with retroactive application, and the previous application of the corridor method as an equalisation mechanism for actuarial gains/losses has thus been removed.

Effect of change in accounting principle	Adjusted opening	Adjusted profit	Adjusted closing
SEK million	bal. 01/01/2012	2012	bal. 31/12/2012
Impact on balance sheet
Provisions for pensions and similar obligations	37	– 1	36
Deferred tax liabilities	– 12	2	– 10
Other provisions	9	0	9
Shareholders' equity	– 34	– 1	– 35
Impact on income statement
Profit for the year		—
Other comprehensive income		1
Tax on other comprehensive income		– 2
Total other comprehensive income		– 1

For Nolato, this has involved the recognised pension liability for PRI increasing by SEK 37 million at 31/12/2011 and by SEK 36 million at 31/12/2012.

Net debt has thus increased by the above amounts and the change is recognised retroactively in this report as of 31/12/2011.

Adding to the change in the pension liability itself is also a special employer's contribution liability, which is recognised under other provisions in the consolidated balance sheet. Furthermore, deferred tax is calculated on the change in pension liability, including the special employer's contribution recognised among deferred tax liabilities.

The total effect of the above is then recognised in other comprehensive income (equity) and has, at 31/12/2011, involved a reduction in equity of SEK 34 million and, at 31/12/2012, of SEK 35 million.

The change in closing balances between the years has been distributed linearly over the quarters.

Return on equity, the equity/assets ratio, debt/equity ratio and equity per share have been affected by the reduction in equity. Return on capital employed and operating capital have also been affected, but not materially.

All key ratios above have been retroactively restated in this report as of 31/12/2011.

Note 2 Financial instruments

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

SEK million	30/09/2013	30/09/2012	31/12/2012
Other receivables
Derivative assets	3	16	3
Other liabilities
Derivative liabilities	1	2	1

No instruments have been offset in the statement of financial position, but have been recognised gross.

For a description of the valuation techniques and input data for the fair value measurement of financial instruments, please see Note 33 of the 2012 Annual Report. For other financial assets and liabilities in the Group, the carrying amounts are a reasonable approximation of their fair values. For a specification of such financial assets and liabilities, please see note 34 in the 2012 Annual Report.