Nolato B

Quarterly Report • Jul 19, 2013

Nolato AB (publ) six-month interim report 2013

Strong earnings and high return on capital

Second quarter of 2013 in brief

• ‒ Sales rose by 11% to SEK 1,164 million (1,046)
• ‒ Operating profit (EBITA) rose by 37% to SEK 111 million (81)
• ‒ Net income stood at SEK 78 million (54)
• ‒ Earnings per share increased to SEK 2.97 (2.05)
• ‒ Cash flow after investments was SEK 120 million (56, excl. acquisitions)
• First six months of 2013 in brief
• ‒ Sales rose to SEK 2,418 million (1,883)
• ‒ Operating profit (EBITA) increased to SEK 233 million (138)
• ‒ Earnings per share were SEK 6.20 (3.46)
• ‒ Cash flow after investments was SEK 136 million (24, excl. acquisitions)

	Group highlights
--	-------------------	--	--

		Q2	Q2	Q1 - Q2	Q1 - Q2	Rolling	Full year
	Note
SEK million unless otherwise specified		2013	2012	2013	2012	12 months	2012
Net sales		1,164	1,046	2,418	1,883	4,409	3,874
Operating profit (EBITDA) 1)		147	117	304	208	540	444
Operating profit (EBITA) 2)		111	81	233	138	398	303
EBITA margin, %		9.5	7.7	9.6	7.3	9.0	7.8
Profit after financial income and expense		105	74	218	125	365	272
Profit after tax		78	54	163	91	274	202
Earnings per share, basic and diluted, SEK*		2.97	2.05	6.20	3.46	10.42	7.68
Adjusted earnings per share, SEK 3) *		3.07	2.17	6.42	3.61	10.94	8.13
Cash flow after investments, excl. acquisitions and disp.		120	56	136	24	431	317
Net investm. affecting cash flow, excl. acq. and disp.		37	39	61	87	131	159
Return on capital employed, %	1	23.0	15.9	23.0	15.9	23.0	19.4
Return on shareholders' equity, %	1	24.2	15.2	24.2	15.2	24.2	17.7
Equity/assets ratio, %	1	42	41	42	41	42	44
Net debt	1	128	406	128	406	128	114

*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.

Second quarter 2013

• Sales rose by 11% to SEK 1,164 million (1,046)
• High margins within all business areas
• Operating profit (EBITA) increased by 37% to SEK 111 million (81)
• High return on capital
• Strong cash flow and good financial position

Sales

The Group's sales totalled SEK 1,164 million (1,046), representing an increase of 11% compared with the corresponding period during the previous year. Adjusted for currency, sales increased by 15%.

Nolato Medical saw sales rise by 3% to SEK 323 million (315), adjusted for currency, sales increased by 8%, well in line with the market's growth.

Nolato Telecom's sales rose by 28% to SEK 541 million (423), adjusted for currency, sales increased by 32%. The demand has continued to remain high, especially during the first part of the quarter.

Nolato Industrial's sales decreased by 3% to SEK 300 million (309), adjusted for currency, sales decreased by 1%. Following the general slowdown which occurred at the end of the third quarter of the previous year, volumes have been stable.

The Group's operating income (EBITA) increased by 37% to SEK 111 million (81). The sales growth, together with the fact that all business areas have increased their margins during the quarter, has resulted in strong earnings growth for the Group.

Operating income (EBITA) for Nolato Medical increased to SEK 42 million (36), for Nolato Telecom earnings increased to SEK 43 million (21) and for Nolato Industrial earnings amounted to SEK 30 million (29).

The EBITA margin for Nolato Medical increased to 13.0% (11.4). The margin has been affected positively by a favourable product mix. The EBITA margin for Nolato Telecom amounted to 7.9% (5.0). The high capacity utilisation has had a positive effect on the margin. The EBITA margin for Nolato Industrial was a strong 10.0% (9.4). A reduced cost level and a favourable product mix have had a positive margin effect. All business areas increased their margins, which contributed to the Group's extremely strong EBITA margin of 9.5% (7.7).

Operating income (EBIT) increased to SEK 107 million (77).

Income after financial items amounted to SEK 105 million (74). Net financial items included SEK 1 million (1) in currency exchange rate difference effects during the second quarter.

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

	Sales	Sales	Op. Profit	Op. Profit	EBITA margin	EBITA margin
SEK million	Q2/2013	Q2/2012	EBITA Q2/2013	EBITA Q2/2012	Q2/2013	Q2/2012
Nolato Medical	323	315	42	36	13.0%	11.4%
Nolato Telecom	541	423	43	21	7.9%	5.0%
Nolato Industrial	300	309	30	29	10.0%	9.4%
Intra-Group adj., Parent Co	0	– 1	– 4	– 5	—	—
Group total	1,164	1,046	111	81	9.5%	7.7%

EBITA margin Profit Adjusted earnings per share Operating profit (EBITA) 0 200 400 600 800 1,000 1,200 1,400 2012 2012 2012 2013 2013 Q2 Q3 Q4 Q1 Q2 SEK million 0 50 100 150 2012 2012 2012 2013 2013 Q2 Q3 Q4 Q1 Q2 SEK million 0.0 2.0 4.0 6.0 8.0 10.0 12.0 2012 2012 2012 2013 2013 Q2 Q3 Q4 Q1 Q2 %

Sales

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

Net income increased by 44% to SEK 78 million (54). Earnings per share, before and after dilution, were SEK 2.97 (2.05). Adjusted earnings per share excluding amortisation of intangible assets arising from acquisitions were SEK 3.07 (2.17).

First six months 2013

Sales and earnings

The Group's sales increased by 28% to SEK 2,418 million (1,883) during the first half of 2013. Adjusted for currency and acquisitions, sales increased by 29%.

Nolato Medical's sales rose by 16% to SEK 651 million (561), of which SEK 68 million is attributable to acquisitions. Nolato Telecom's sales rose by 64% to SEK 1,168 million (710), and Nolato Industrial's sales decreased by 2% to SEK 599 million (613).

The Group's operating income (EBITA) increased to SEK 233 million (138) and the EBITA margin was 9.6% (7.3). Operating income (EBIT) amounted to SEK 225 million (132).

Income after financial items amounted to SEK 218 million (125).

Net income was SEK 163 million (91). Earnings per share, both before and after dilution, increased by 79% to SEK 6.20 (3.46). Adjusted earnings per share excluding amortisation of intangible assets arising from acquisitions were SEK 6.42 (3.61). The effective tax rate was 25% (27).

The return on capital employed was 23.0% for the most recent 12-month period (19.4% for the 2012 calendar year). The return on shareholders' equity was 24.2% for the most recent 12-month period (17.7% for the 2012 calendar year).

Business areas' share of operating profit (EBITA) Sales by geographic markets Nolato Medical operating profit (EBITA) & EBITA margin % Nolato Medical sales Business areas' share of sales Nolato Industrial 25% Nolato Telecom 48% Nolato Medical 27% Asia 1,138 Oth. Europe 571 Sweden 455 North Am. etc 171 Oth. Nordic 83 Nolato Industrial 24% Nolato Telecom 41% Nolato Medical 35% 0 100 200 300 400 2012 2012 2012 2013 2013 Q2 Q3 Q4 Q1 Q2 SEK million 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 0 10 20 30 40 50 % SEK million

2012 2012 2012 2013 2013 Q2 Q3 Q4 Q1 Q2

Nolato Medical

Sales and profit Q1-Q2 (SEK million)	2013	2012
Sales	651	561
Operating profit (EBITA)	85	67
EBITA margin (%)	13.1	11.9
Operating profit (EBIT)	78	62

Nolato Medical saw sales increase to SEK 651 million (561), which corresponds to a growth of 16%. Adjusted for currency and acquisitions, sales increased by 8%. The trend in volumes was good for most of the business area's customer segments.

Operating income (EBITA) rose to SEK 85 million (67). The EBITA margin amounted to 13.1% (11.9). The margin has been affected positively by a favourable product mix.

As communicated, Nolato Medical is expanding its Chinese production plant with a further 2,200 m2, of which approximately 800 m2 is cleanroom. China is the fastest growing market for pharmaceuticals and medical technology. The extension, which has space for approximately 30 injection moulds, is being conducted to fulfil the customers' future needs and to secure resources for growth in China.

Nolato Telecom

1,168	710
100	28
8.6	3.9
100	28

Nolato Telecom's sales increased by an entire 65% to SEK 1,168 million (710). Adjusted for currency, sales increased by 70%. Volumes have been very high, especially during the first quarter and second quarter's first part, where several products have had a very strong demand. The start-up of new customer projects has been carried out as planned and gradually replaces the existing product portfolio.

Operating income (EBITA) rose to SEK 100 million (28). The EBITA margin was 8.6% (3.9). The margin was affected positively by the high capacity utilisation and a favourable product mix with a significant share of new products.

Nolato Industrial

2013	2012
599	613
59	57
9.8	9.3
58	56

Nolato Industrial's sales decreased by 2% to SEK 599 million (613). Adjusted for currency, sales decreased by 1%. The economic anxiety that occurred during the end of the third quarter of last year has continued to affect demand. The volumes in the automotive segment has been reduced, while certain other segments such as hygiene has counteracted.

Operating profit (EBITA) amounted to SEK 59 million (57), with a strong EBITA margin of 9.8 percent (9.3). A reduced cost level and favourable product mix had a positive margin effect.

The positive earnings trend has entailed that the cash flow before investments increased to SEK 197 million (111). Working capital has increased as a result of the increased sales. The change in working capital was a negative SEK 21 million (-56). Cash flow after investments was SEK 136 million (-154 including acquisitions, 24 excluding acquisitions). Net investments affecting cash flow totalled SEK 61 million (265, of which the acquisition of Cope Allman Jaycare constituted SEK 178 million).

Financial position

Interest-bearing assets totalled SEK 346 million (140) and interest-bearing liabilities and provisions totalled SEK 474 million (546). Net debt thus totalled SEK 128 million (406). Net debt has declined compared to the corresponding period of last year, as there was a higher financing requirement for the acquisition of Cope Allman Jaycare. Equity amounted to SEK 1,188 million (1,074). The equity/assets ratio was 42% (41). During the second quarter, dividends totalling SEK 158 million (132) were paid.

Net debt & assets/equity ratio %

	Q2	Q2	Q1 - Q2	Q1 - Q2	Rolling	Full year
SEK million	2013	2012	2013	2012	12 months	2012
Net sales	1,164	1,046	2,418	1,883	4,409	3,874
Gross profit excl. depreciation/amortisation	201	173	415	318	755	658
As a percentage of net sales	17.3	16.5	17.2	16.9	17.1	17.0
Costs	– 54	– 56	– 111	– 110	– 215	– 214
As a percentage of net sales	4.6	5.4	4.6	5.8	4.9	5.5
Operating profit (EBITDA)	147	117	304	208	540	444
As a percentage of net sales	12.6	11.2	12.6	11.0	12.2	11.5
Depreciation and amortisation	– 36	– 36	– 71	– 70	– 142	– 141
Operating profit (EBITA)	111	81	233	138	398	303
As a percentage of net sales	9.5	7.7	9.6	7.3	9.0	7.8
Amortisation of intang. assets arising from acquisitions	– 4	– 4	– 8	– 6	– 18	– 16
Operating profit (EBIT)	107	77	225	132	380	287
Financial income and expense	– 2	– 3	– 7	– 7	– 15	– 15
Profit after financial income and expense	105	74	218	125	365	272
Tax	– 27	– 20	– 55	– 34	– 91	– 70
As a percentage of Profit after financial income and expense	25.7	27.0	25.2	27.2	24.9	25.7
Profit after tax	78	54	163	91	274	202

Consolidated performance analysis

Financial position

SEK million	Note	30/06/2013	30/06/2012	31/12/2012
Interest-bearing liabilities, credit institutions		343	415	255
Interest-bearing pension liabilities		131	131	131
Total borrowings		474	546	386
Cash and bank		– 346	– 140	– 272
Net debt	1	128	406	114
Working capital		125	263	93
As a percentage of sales (avg.) (%)		4.4	5.9	3.4
Capital employed	1	1,662	1,619	1,556
Return on capital employed (avg.) (%)	1	23.0	15.9	19.4
Shareholders' equity	1	1,188	1,074	1,170
Return on shareholders' equity (avg.) (%)	1	24.2	15.2	17.7

Personnel

The average number of employees during the period was 10,827 (8,237). The increase in the number of employees is primarily 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

No 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 have been listed on the NASDAQ OMX Nordic Exchange in the Stockholm Mid Cap segment, where they are included under the Industrials sector.

The number of shareholders totalled 8,307 as of 30 June. The largest shareholders were the Jorlén family with 10%, the Boström family with 9%, the Paulsson family with 8%, Svolder with 5% and Odin Fonder with 4% of the share capital.

The Parent Company

In the parent company, which is not trading, sales amounted to SEK 13 million (12). Income after financial items amounted to SEK 3 million (-3). The improved earnings are primarily the result of 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 interim report has been prepared in accordance with IAS 34 (Interim Financial Reporting) and applicable provisions of the Swedish Annual Accounts Act. The Swedish Securities Market Act has been applied for publishing this interim report.

The consolidated accounts have been 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 recognized in accordance with the amended IAS 19, as stated in note 1, while other comprehensive income is recognized 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 has been prepared in accordance with Chapter 9 of the Swedish Annual Accounts Act.

Financial information schedule Contact:

Nine-month interim report 2013: 24 October 2013 Hans Porat, President and

The Board of Directors and the President give their assurance that this interim report provides a true and fair view of the operations, financial position and earnings of the company and the Group, and describe the significant risks and uncertainty factors faced by the company and the companies included in the Group.

Torekov 19 July 2013

Fredrik Arp Chairman of the Board

Board member Board member Board member

Henrik Jorlén Erik Paulsson Sven Boström Svensson

Lars-Åke Rydh Anna Malm Bernsten Hans Porat Board member Board member Board member

President

Magnus Bergqvist Eva Norrman Björn Jacobsson Employee representative Employee representative Employee representative

Board member Board member Board member

• CEO, tel. +46431 442294.
• Per-Ola Holmström, CFO, tel. +46431 442293.

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 19 July 2013 at 15:00.

This report has been reviewed by the Company's auditors.

Review report

Introduction

I have reviewed the summary interim financial information (interim report) for Nolato AB (publ) as at 30 June 2013 and the six-month period ending on that date. It is the Board of Directors and the President who are responsible for the preparation and accurate presentation of this interim report in accordance with IAS 34 and the Swedish Annual Accounts Act. My responsibility is to express a conclusion on this interim report based on my review.

Focus and scope of review

I have conducted my review in accordance with the Standard on Review Engagements (SÖG) 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is different in focus and considerably less far-reaching in focus and scope than an audit conducted in accordance with the Standards on Auditing in Sweden (RS) and other generally accepted auditing practices. The procedures performed in a review do not enable me to obtain a level of assurance that would make me aware of all significant circumstances that might be identified in an audit. Therefore, the conclusion expressed based on a review does not give the same level of assurance as a conclusion expressed based on an audit.

Conclusion

Based on my review, nothing has come to my attention that causes me to believe that the attached interim financial report has not been prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act in terms of the Group, and in accordance with the Swedish Annual Accounts Act in terms of the Parent Company.

Torekov 19 July 2013

Alf Svensson Authorised public accountant

Consolidated income statement (summary)

	Q2	Q2	Q1 - Q2	Q1 - Q2	Rolling	Full year
SEK million	2013	2012	2013	2012	12 months	2012
Net sales	1,164	1,046	2,418	1,883	4,409	3,874
Cost of goods sold	– 996	– 905	– 2,072	– 1,628	– 3,797	– 3,353
Gross profit	168	141	346	255	612	521
Other operating income	3	1	5	1	15	11
Selling expenses	– 23	– 25	– 43	– 43	– 82	– 82
Administrative expenses	– 41	– 37	– 83	– 75	– 164	– 156
Other operating expenses	—	– 3	—	– 6	– 1	– 7
	– 61	– 64	– 121	– 123	– 232	– 234
Operating profit	107	77	225	132	380	287
Financial income and expense	– 2	– 3	– 7	– 7	– 15	– 15
Profit after financial income and expense	105	74	218	125	365	272
Tax	– 27	– 20	– 55	– 34	– 91	– 70
Profit after tax	78	54	163	91	274	202
All earnings are attrib. to the Parent Co.'s shareholders
Depreciation/amortisation	40	40	79	76	160	157
Earnings per share, basic and diluted (SEK)	2.97	2.05	6.20	3.46	10.42	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	Q2	Q2	Q1 - Q2	Q1 - Q2	Rolling	Full year
SEK million		2013	2012	2013	2012	12 months	2012
Profit after tax		78	54	163	91	274	202
Other comprehensive income
Items that can not be recycled to profit for the period
Revaluations of defined benefit pension plans	1	0	0	0	0	1	1
Tax attributable to items that can not be transfered to profit for the period	1	0	0	0	0	– 2	– 2
		0	0	0	0	– 1	– 1
Items that have been transferred or can be recycled
to profit for the period
Translation differences for the period		21	8	14	– 2	– 1	– 17
Cash flow hedges	2	0	0	– 1	0	0	1
Tax attributable to cash flow hedges	2	0	0	0	0	0	0
		21	8	13	– 2	– 1	– 16
Other comprehensive income, net of tax		21	8	13	– 2	– 2	– 17
Total comp. income for the period attributable to the Parent Co.'s shareholders		99	62	176	89	272	185

Reconciliation of consolidated income before tax

	Q1 - Q2	Q1 - Q2	Rolling	Full year
SEK million	2013	2012	12 months	2012
Operating profit (EBIT)
Nolato Medical	78	62	136	120
Nolato Telecom	100	28	168	96
Nolato Industrial	58	56	104	102
Group adjustments, Parent Company	– 11	– 14	– 28	– 31
Consolidated operating profit (EBIT)	225	132	380	287
Financial income and expense (not distributed by business areas)	– 7	– 7	– 15	– 15
Consolidated profit before tax	218	125	365	272

Consolidated balance sheet (summary)

Note	30/06/2013	30/06/2012	31/12/2012
	543	573	553
	721	751	735
	2	2	2
	2	1	2
	36	36	35
	1,304	1,363	1,327
			288
			682
2	93	91	65
	346	140	272
	1,554	1,267	1,307
			2,634
1, 2	1,188	1,074	1,170
1			164
1			104
			1,196
	1,670	1,556	1,464
	2,858	2,630	2,634
			386
			1,078
			1,464
	2	300 815 2,858 164 80 1,426 474 1,196 1,670	273 763 2,630 162 115 1,279 546 1,010 1,556

Changes in consolidated shareholders' equity (summary)

	Note	Q1 - Q2	Q1 - Q2	Full year
SEK million		2013	2012	2012
Shareholders' equity at the beginning of the period	1	1,170	1,117	1,117
Total comprehensive income for the period	1	176	89	185
Dividends		– 158	– 132	– 132
Shareholders' equity at the end of period attrib. to Parent Co's shareholders	1	1,188	1,074	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)

Q2	Q2	Q1 - Q2	Q1 - Q2	Rolling	Full year
2013	2012	2013	2012	12 months	2012
106	94	218	167	438	387
51	1	– 21	– 56	124	89
157	95	197	111	562	476
– 37	– 217	– 61	– 265	– 131	– 335
120	– 122	136	– 154	431	141
					12
99	44	67	16	204	153
238	94	272	124	—	124
9	2	7	0	—	– 5
346	140	346	140	—	272
	– 21	166	– 69	170	– 227

Earnings per share

	Q2	Q2	Q1 - Q2	Q1 - Q2	Rolling	Full year
SEK million	2013	2012	2013	2012	12 months	2012
Profit after tax	78	54	163	91	274	202
Adjusted earnings:
Amortisation of intangible assets arising from acquis.	4	4	8	6	18	16
Tax on amortisation	– 1	– 1	– 2	– 2	– 4	– 4
Adjusted earnings	81	57	169	95	288	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) *	2.97	2.05	6.20	3.46	10.42	7.68
Adjusted earnings per share (SEK) *	3.07	2.17	6.42	3.61	10.94	8.13

* The company does not have any ongoing financial instrument programmes which 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 apply (see note 1).

Quarterly data (summary)

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

* 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	—	—	—
		2012	246	315	288	310	1,159
		2011	232	235	220	230	917
Nolato Telecom		2013	627	541	—	—	—
		2012	287	423	444	394	1,548
		2011	259	249	220	207	935
Nolato Industrial		2013	299	300	—	—	—
		2012	304	309	268	289	1,170
		2011	268	283	279	299	1,129
Group adjustments, Parent Company		2013	0	0	—	—	—
		2012	0	– 1	– 1	– 1	– 3
		2011	—	– 1	– 1	– 2	– 4
Group total		2013	1,254	1,164	—	—	—
		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	—	—	—
	EBITA margin (%)		13.1	13.0	—	—	—
		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	—	—	—
	EBITA margin (%)		9.1	7.9	—	—	—
		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	—	—	—
	EBITA margin (%)		9.7	10.0	—	—	—
		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	—	—	—
		2012	– 9	– 5	– 7	– 10	– 31
		2011	– 5	– 7	– 4	– 8	– 24
Group total		2013	122	111	—	—	—
	EBITA margin (%)		9.7	9.5	—	—	—
		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 2012	18 15	20 18	— 19	— 20	— 72
		2011	14	16	14	15	59
		2013	10	10	—	—	—
Nolato Telecom		2012	10	10	10	11	41
		2011	13	10	35	10	68
Nolato Industrial		2013	11	10	—	—	—
		2012	11	12	10	11	44
		2011	10	11	11	11	43
Group total		2013	39	40	—	—	—
		2012	36	40	39	42	157
		2011	37	37	60	36	170

Group financial highlights

	Note	Q2	Q2	Q1 - Q2	Q1 - Q2	Rolling	Full year
		2013	2012	2013	2012	12 months	2012
Net sales (SEK million)		1,164	1,046	2,418	1,883	4,409	3,874
Sales growth (%)		11	37	28	23	32	30
Percentage of sales outside Sweden (%)		80	76	81	74	82	75
Operating profit (EBITDA) (SEK million)		147	117	304	208	540	444
Operating profit (EBITA) (SEK million)		111	81	233	138	398	303
EBITA margin (%)		9.5	7.7	9.6	7.3	9.0	7.8
Profit after financial income and expense (SEK million)		105	74	218	125	365	272
Profit margin (%)		9.0	7.1	9.0	6.6	8.3	7.0
Profit after tax (SEK million)		78	54	163	91	274	202
Return on total capital (%)		13.7	9.8	13.7	9.8	13.7	11.9
Return on capital employed (%)	1	23.0	15.9	23.0	15.9	23.0	19.4
Return on operating capital (%)	1	26.9	17.2	26.9	17.2	26.9	22.6
Return on shareholders' equity (%)	1	24.2	15.2	24.2	15.2	24.2	17.7
Equity/assets ratio (%)	1	42	41	42	41	42	44
Debt/equity (%)	1	40	51	40	51	40	33
Interest coverage ratio (times)		37	23	36	22	37	23
Net investments affecting cash flow, excl. acq. and disposals
(SEK million)		37	39	61	87	131	159
Cash flow after inv., excl. acq. and disp. (SEK million)		120	56	136	24	431	317
Net debt (SEK million)	1	128	406	128	406	128	114
Earnings per share, basic and diluted (SEK)		2.97	2.05	6.20	3.46	10.42	7.68
Adjusted earnings per share (SEK)		3.07	2.17	6.42	3.61	10.94	8.13
Cash flow per share, excl. acq. and disposals (SEK)		4.56	2.13	5.17	0.91	16.38	12.05
Shareholders' equity per share (SEK)	1	—	—	45	41	—	44
Average number of employees		—	—	10,827	8,237	—	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.

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

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

Equity/assets ratio

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

Profit margin

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

Parent Company income statement (summary)

	Q2	Q2	Q1 - Q2	Q1 - Q2	Rolling	Full year
SEK million	2013	2012	2013	2012	12 months	2012
Net sales	6	6	13	12	20	19
Other operating income	1	—	2	—	2	—
Selling expenses	– 2	– 2	– 4	– 4	– 7	– 7
Administrative expenses	– 11	– 11	– 23	– 20	– 45	– 42
Other operating expenses	—	0	—	– 1	– 2	– 3
Operating profit	– 6	– 7	– 12	– 13	– 32	– 33
Profit from participations in Group companies	6	4	7	4	54	51
Financial income	7	5	12	10	27	25
Financial expenses	2	2	– 4	– 4	– 36	– 36
Profit after financial income and expense	9	4	3	– 3	13	7
Appropriations	—	—	—	—	149	149
Tax	2	0	– 10	0	– 49	– 39
Profit after tax	11	4	– 7	– 3	113	117
Depreciation/amortisation	0	0	0	0	1	0

Parent Company balance sheet (summary)

SEK million	30/06/2013	30/06/2012	31/12/2012
Assets
Intangible fixed assets	1	1	1
Property, plant and equipment	0	0	0
Financial assets	991	1,005	994
Deferred tax assets	8	7	4
Total fixed assets	1,000	1,013	999
Other receivables	272	438	472
Cash and bank	120	0	42
Total current assets	392	438	514
Total assets	1,392	1,451	1,513
Shareholders' equity and liabilities
Shareholders' equity	733	779	899
Untaxed reserves	179	160	179
Other provisions	5	5	5
Long-term liabilities	0	17	17
Current liabilities	475	490	413
Total shareholders' equity and liabilities	1,392	1,451	1,513
Pledged assets	—	—	—
Contingent liabilities	107	202	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-Jun 2013	13	– 2	11	0	7	694	107
Subsidiary	Jan-Jun 2012	12	– 2	10	0	4	874	175

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	30/06/2013	30/06/2012	31/12/2012
Other receivables
Derivative assets	0	4	3
Other liabilities
Derivative liabilities	3	3	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.