Nolato B

Quarterly Report • Oct 28, 2015

Nolato AB (publ) nine-month interim report 2015

Strong earnings and margin performance

Third quarter of 2015 in brief

• ‒ Sales totalled SEK 1,084 million (1,095)
• ‒ Operating profit (EBITA) rose by 27% to SEK 142 million (112)
• ‒ Strong EBITA margin of 13.1% (10.2)
• ‒ Profit after tax increased to SEK 105 million (83)
• ‒ Earnings per share were SEK 3.99 (3.15)
• ‒ Cash flow after investments was SEK 120 million (-13)

First nine months of 2015 in brief

• ‒ Sales increased to SEK 3,437 million (2,992)
• ‒ Operating profit (EBITA) was SEK 432 million (306)
• ‒ Earnings per share increased to SEK 12.28 (8.78)
• ‒ Cash flow after investments was SEK 172 million (37)
• ‒ Healthy financial position with net assets of SEK 16 million (-43)

	Q3	Q3	Q1 - Q3	Q1 - Q3	Rolling	Full year
SEK million unless otherwise specified	2015	2014	2015	2014	12 months	2014
Net sales	1,084	1,095	3,437	2,992	4,679	4,234
Operating profit (EBITDA) 1)	185	149	557	413	763	619
Operating profit (EBITA) 2)	142	112	432	306	596	470
EBITA margin, %	13.1	10.2	12.6	10.2	12.7	11.1
Operating profit (EBIT) 3)	139	108	421	294	581	454
Profit after financial income and expense	137	108	420	300	582	462
Profit after tax	105	83	323	231	456	364
Earnings per share, basic and diluted, SEK *	3.99	3.15	12.28	8.78	17.34	13.84
Adjusted earnings per share, SEK 4) *	4.07	3.27	12.58	9.12	17.75	14.29
Cash flow after investments, excl. acquisitions and disp.	120	– 13	172	37	262	127
Net investm. affecting cash flow, excl. acq. and disp.	33	52	207	155	255	203
Cash conversion, % 5)	—	—	—	—	45	28
Return on capital employed, %	32.0	24.6	32.0	24.6	32.0	28.4
Return on shareholders' equity, %	29.6	23.2	29.6	23.2	29.6	25.0
Equity/assets ratio, %	53	50	53	50	53	54
Net financial assets (+) / liabilities (-)	16	– 43	16	– 43	16	59

*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) Operating profit (EBIT): Earnings before interest and taxes.

4) Adjusted earnings per share: Profit after tax, excluding amortisation of intangible assets arising from acquisitions, divided by the average number of shares.

5) Cash conversion: Cash flow after investments, excl. acquisitions and disposals, divided by operating profit (EBIT). Cash flow and operating profit have been adjusted by non-recurring items.

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

Group highlights

Third quarter 2015

• Sales totalled SEK 1,084 million (1,095)
• Operating income (EBITA) increased by 27% to SEK 142 million (112)
• Continued healthy financial position with net assets of SEK 16 million (-43)

Sales

Consolidated sales totalled SEK 1,084 million (1,095). Adjusted for currency, sales decreased by 10%, which was fully attributable to Nolato Telecom.

Nolato Medical's sales increased to SEK 368 million (330); adjusted for currency, sales grew by 3%. Packaging volumes remained low in Eastern Europe. Most of the business area's other customer segments saw volumes grow.

Nolato Telecom's sales amounted to SEK 434 million (502); adjusted for currency, sales decreased by 27%. Product changeovers are continuing, but older products enjoyed higher than expected volumes. Activity in the EMC (electromagnetic compatibility) area is continuing to show positive development.

Nolato Industrial's sales amounted to SEK 282 million (264); adjusted for currency, sales increased by 5%. Volumes in the automotive and hygiene segments showed positive performance and were higher than the year-earlier period.

Profit

Consolidated operating profit (EBITA) rose to SEK 142 million (112), of which SEK 18 million net was attributable to positive currency effects, particularly in Nolato Telecom. In addition, a continued positive development of margins contributed to the improvement in earnings.

Nolato Medical's operating profit (EBITA) increased significantly to SEK 51 million (42), Nolato Telecom's to SEK 63 million (48) and Nolato Industrial's to SEK 30 million (28).

Nolato Medical's EBITA margin rose to a strong 13.9% (12.7). Performance in the quarter was helped by a good product mix. Nolato Telecom's EBITA margin rose to a strong 14.5% (9.6).

The improvement in the margin was supported by a beneficial product mix and a low material share, efficient adjustments to lower volumes and a continued focus on EMC. Nolato Industrial's EBITA margin was unchanged at 10.6% (10.6).

Overall, the Group's EBITA margin was a very strong 13.1% (10.2).

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

Q3 Q4 Q1 Q2 Q3

Operating profit (EBIT) increased to SEK 139 million (108).

Profit after net financial income/expense was SEK 137 million (108). Net financial income/expense included exchange rate fluctuations affecting earnings by SEK -1 million (+1).

Profit after tax rose to SEK 105 million (83). Earnings per share, basic and diluted, rose to SEK 3.99 (3.15). Adjusted earnings per share excluding amortisation of intangible assets arising from acquisitions were SEK 4.07 (3.27).

First nine months 2015

Sales and earnings

Consolidated sales rose to SEK 3,437 million (2,992) in the first nine months of 2015. Adjusted for currency, sales increased by 2%.

Nolato Medical's sales rose by 8% to SEK 1,077 million (999), Nolato Telecom's sales rose by 23% to SEK 1,436 million (1,166) and Nolato Industrial's sales rose by 12% to SEK 926 million (829).

Consolidated operating profit (EBITA) was SEK 432 million (306) and the EBITA margin rose to 12.6% (10.2). Operating profit (EBIT) was SEK 421 million (294).

Profit after net financial income/expense was SEK 420 million (300; net financial income/expense for the year-earlier period included a positive nonrecurring item of SEK 8 million).

Profit after tax rose to SEK 323 million (231). Earnings per share, basic and diluted, increased to SEK 12.28 (8.78; excluding the effect of the nonrecurring item earnings per share were SEK 8.48). Adjusted earnings per share excluding amortisation of intangible assets arising from acquisitions were SEK 12.58 (9.12). The effective tax rate was 23% (23).

The return on capital employed was 32.0% for the last twelve months (28.4% for the 2014 calendar year). Return on equity was 29.6% for the last twelve months (25.0% for the 2014 calendar year). Cash conversion for the last twelve months was 45% (28% for the 2014 calendar year).

Nolato Medical

Sales and profit Q1-Q3 (SEK million)	2015	2014
Sales	1,077	999
Operating profit (EBITA)	144	133
EBITA margin (%)	13.4	13.3
Operating profit (EBIT)	134	123

Nolato Medical's sales were SEK 1,077 million (999); adjusted for currency, sales decreased by 1%. Packaging volumes were lower in Eastern Europe. Other segments were stable.

Operating profit (EBITA) rose to SEK 144 million (133). The EBITA margin was a strong 13.4% (13.3).

High activity and healthy project activity are enabling future growth, for example via a breakthrough in robust design and computer-based modelling, in the development phase for new customer projects. Nolato Medical received the Swedish Lean Award 2015 at the Swedish Lean Forum. The prize was awarded for, among things, Nolato's long tradition of responsible business that combines efficient business operations with ethics, responsibility and environmental awareness through Nolato's Medical Excellence production system.

Nolato Telecom

Sales and profit Q1-Q3 (SEK million)	2015	2014
Sales	1,436	1,166
Operating profit (EBITA)	211	101
EBITA margin (%)	14.7	8.7
Operating profit (EBIT)	211	101

Nolato Telecom's sales totalled SEK 1,436 million (1,166); adjusted for currency, sales decreased by 1%. High volumes in the second quarter were a result of the success of customer handsets on the consumer market. Volumes are lower in the second half of the year, when product changeovers take place. Activity in the EMC area is continuing to show positive development.

Operating profit (EBITA) rose to SEK 211 million (101). The EBITA margin grew to a very strong 14.7% (8.7). A favourable product mix and high efficiency led to a higher margin. The product mix is expected to remain favourable in the fourth quarter.

Nolato Industrial

Sales and profit Q1-Q3 (SEK million)	2015	2014
Sales	926	829
Operating profit (EBITA)	98	89
EBITA margin (%)	10.6	10.7
Operating profit (EBIT)	97	87

Nolato Industrial's sales rose to SEK 926 million (829); adjusted for currency, sales increased by 9%. Volumes in the automotive segment were healthy and in the hygiene segment they were higher than the year-earlier period. Continued investments in technology and increased market share are having a positive effect. The significant project activity during the year relating to new products has generated higher sales.

Operating profit (EBITA) rose to SEK 98 million (89), with a strong EBITA margin of 10.6% (10.7).

Cash flow Cash flow after investments

Positive earnings performance and lower investments have contributed to strengthened cash flow after investments of SEK 120 million (-13) in the third quarter.

Accumulated after nine months, cash flow after investments was SEK 172 million (37). The strong earnings and lower working capital requirements had a positive impact on cash flow, while higher investments than the yearearlier period had a negative effect. The change in working capital for the first nine months was a negative SEK 44 million (-145). Investments affecting cash flow rose to SEK 207 million (155). Payments for expansion in China, Hungary and Malaysia, together with increased investments in machine capacity, have led to higher investments.

Interest-bearing assets totalled SEK 362 million (206), and interest-bearing liabilities and provisions totalled SEK 346 million (249). Net financial assets consequently totalled SEK 16 million (-43). Shareholders' equity was SEK 1,685 million (1,401). The equity/assets ratio was 53% (50). In the second quarter of the year, dividends totalling SEK 224 million (210) were paid out, corresponding to a dividend of SEK 8.50 per share.

Excluding acquisitions and disposals Financial position Net financial assets (+) liabilities (-) & assets/equity ratio 300 SEK million ‐100 ‐50 0 50 100 150 2014 2014 2015 2015 2015 Q3 Q4 Q1 Q2 Q3 SEK million

Consolidated performance analysis

	Q3	Q3	Q1 - Q3	Q1 - Q3	Rolling	Full year
SEK million	2015	2014	2015	2014	12 months	2014
Net sales	1,084	1,095	3,437	2,992	4,679	4,234
Gross profit excl. depreciation/amortisation	227	205	738	587	1,010	859
As a percentage of net sales	20.9	18.7	21.5	19.6	21.6	20.3
Costs	– 42	– 56	– 181	– 174	– 247	– 240
As a percentage of net sales	3.9	5.1	5.3	5.8	5.3	5.7
Operating profit (EBITDA)	185	149	557	413	763	619
As a percentage of net sales	17.1	13.6	16.2	13.8	16.3	14.6
Depreciation and amortisation	– 43	– 37	– 125	– 107	– 167	– 149
Operating profit (EBITA)	142	112	432	306	596	470
As a percentage of net sales	13.1	10.2	12.6	10.2	12.7	11.1
Amortisation of intangible assets arising from acquisitions	– 3	– 4	– 11	– 12	– 15	– 16
Operating profit (EBIT)	139	108	421	294	581	454
Financial income and expense	– 2	—	– 1	6	1	8
Profit after financial income and expense	137	108	420	300	582	462
Tax	– 32	– 25	– 97	– 69	– 126	– 98
As a percentage of profit after financial income and expense	23.4	23.1	23.1	23.0	21.6	21.2
Profit after tax	105	83	323	231	456	364

Financial position

SEK million	30/09/2015	30/09/2014	31/12/2014
Interest-bearing liabilities, credit institutions	– 218	– 130	– 69
Interest-bearing pension liabilities	– 128	– 119	– 128
Total borrowings	– 346	– 249	– 197
Cash and bank	362	206	256
Net financial assets (+) / liabilities (-)	16	– 43	59
Working capital	210	121	107
As a percentage of sales (avg.) (%)	3.5	3.3	1.6
Capital employed	2,029	1,650	1,764
Return on capital employed (avg.) (%)	32.0	24.6	28.4
Shareholders' equity	1,685	1,401	1,567
Return on shareholders' equity (avg.) (%)	29.6	23.2	25.0

Personnel

The average number of employees during the period was 7,590 (7,084). The increase in the number of employees is primarily attributable to Nolato Telecom in China.

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 2014 Annual Report on pages 14, 48 – 49, and in Note 4 on pages 59 – 60.

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

Events after the balance sheet date

Christer Wahlquist has been appointed as the new President and CEO of Nolato and will take up his post on 5 February 2016 (see separate press release). At his own request, Hans Porat will step down as President and CEO of Nolato when the 2015 year-end report is published on 4 February 2016. Christer Wahlquist has been Head of the Nolato Medical business area since 2005 and since then been a member of Nolato's Group management.

Ownership and legal structure

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

Nolato's Class B shares are listed on the NASDAQ Stockholm exchange in the Mid Cap segment, where they are included in the Industrials sector.

There were 10,120 shareholders at 30 September. The largest shareholders are the Jorlén family with 10%, the Boström family with 9%, Swedbank Robur Funds with 6%, and the Paulsson family, DnB Carlson Funds, MPCS EQ and Svolder with 3% of the capital each.

The Parent Company

For the Parent Company, which has no operational activities, sales amounted to SEK 24 million (22). Profit after financial income and expense decreased to SEK 15 million (36), owing mainly to negative currency effects and lower net financial income/expense during the period.

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 year-end report has been prepared in accordance with IAS 34 (Interim Financial Reporting) and the applicable provisions of the Swedish Annual Accounts Act. The Swedish Securities Market Act has been applied in relation to publication of this interim report.

The consolidated accounts have been prepared in accordance with the same principles as those applied in the most recent Annual Report, which are described in the 2014 Annual Report on pages 56 – 58.

The new or revised IFRS standards or IFRIC interpretations, which came into effect on 1 January 2015, have not had any material effect on the consolidated income statement or balance sheet.

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

Nomination Committee Contact:

At the end of September 2015, in accordance with a decision at Nolato's annual general meeting on 29 April 2015, the five largest shareholders in terms of votes appointed the following persons to be a part of Nolato's nomination committee ahead of the annual general meeting of 2016: Henrik Jorlén (Chairman), Gun Boström, Erik Paulsson and Bo Lundgren (Swedbank Robur Funds).

Shareholders who would like to submit proposals to the nomination committee can contact the Chairman of the nomination committee, Henrik Jorlén, e-mail henrik.jorlen@gmail.com or through regular post Kommendörsgatan 4, 269 77 Torekov.

Annual General Meeting

The Annual General Meeting will be held on 28 April 2016.

Financial calendar

• 2015 year-end report: 4 February 2016
• Three-month interim report 2016: 28 April 2016
• 2016 Annual General Meeting: 28 April 2016
• Six-month interim report 2016: 19 July 2016
• Nine-month interim report 2016: 25 October 2016

Torekov, 28 October 2015 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 28 October 2015 at 14:30.

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

Consolidated income statement (summary)

2015 2014 2015 2014 12 months SEK million Net sales 1,084 1,095 3,437 2,992 4,679 – 899 – 926 – 2,821 – 2,509 – 3,832 Cost of goods sold 185 169 616 483 847	2014 4,234 – 3,520 714
Gross profit
10 — 12 5 12 Other operating income	5
– 25 – 23 – 81 – 73 – 109 Selling expenses	– 101
Administrative expenses – 32 – 38 – 126 – 121 – 167	– 162
1 — — — – 2 Other operating expenses	– 2
– 46 – 61 – 195 – 189 – 266	– 260
139 108 421 294 581 Operating profit	454
Financial income and expense – 2 — – 1 6 1	8
137 108 420 300 582 Profit after financial income and expense	462
Tax – 32 – 25 – 97 – 69 – 126	– 98
105 83 323 231 456 Profit after tax	364
All earnings are attrib. to the Parent Co.'s shareholders
46 41 136 119 182 Depreciation/amortisation	165
3.99 3.15 12.28 8.78 17.34 Earnings per share, basic and diluted (SEK)	13.84
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
26,307,408 26,307,408 26,307,408 26,307,408 26,307,408 Average number of shares	26,307,408

Consolidated comprehensive income

2014 83	2015	2014	12 months
				2014
	323	231	456	364
– 9	—	– 9	– 11	– 20
2	—	2	2	4
– 7	—	– 7	– 9	– 16
25	17	41	60	84
– 2	3	– 3	2	– 4
1	– 1	1	– 1	1
24	19	39	61	81
17	19	32	52	65
100				429
				342 263 508

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

Reconciliation of consolidated profit before tax

	Q1 - Q3	Q1 - Q3	Rolling	Full year
SEK million	2015	2014	12 months	2014
Operating profit (EBIT)
Nolato Medical	134	123	174	163
Nolato Telecom	211	101	309	199
Nolato Industrial	97	87	125	115
Group adjustments, Parent Company	– 21	– 17	– 27	– 23
Consolidated operating profit (EBIT)	421	294	581	454
Financial income and expense (not distributed by business areas)	– 1	6	1	8
Consolidated profit before tax	420	300	582	462

Consolidated balance sheet (summary)

SEK million	30/09/2015	30/09/2014	31/12/2014
Assets
Non-current assets
Intangible non-current assets	549	544	549
Property, plant and equipment	945	829	894
Non-current financial assets	2	2	2
Other non-current receivables	1	2	1
Deferred tax assets	48	36	45
Total fixed assets	1,545	1,413	1,491
Current assets
Inventories	321	280	264
Accounts receivable	755	752	755
Other current assets 2)	179	141	148
Cash and bank	362	206	256
Total current assets	1,617	1,379	1,423
Total assets	3,162	2,792	2,914
Shareholders' equity and liabilities
Shareholders' equity	1,685	1,401	1,567
Long-term liabilities and provisions 1)	159	146	157
Deferred tax liabilities 1)	55	63	61
Current liabilities and provisions 1) 2)	1,263	1,182	1,129
Total liabilities and provisions	1,477	1,391	1,347
Total shareholders' equity and liabilities	3,162	2,792	2,914
1) Interest-bearing/non-interest-bearing liabilities and provisions:
Interest-bearing liabilities and provisions	346	249	197
Non-interest-bearing liabilities and provisions	1,131	1,142	1,150
Total liabilities and provisions	1,477	1,391	1,347
2) Financial instruments are measured at fair value in the statement of financial position, pursuant to measurement hierarchy Level 2.
2) Derivative assets are included in other current assets with	1	—	—
2) Derivative liabilities are included in current liabilities and provisions with	26	28	10

Changes in consolidated shareholders' equity (summary)

Q1 - Q3	Q1 - Q3	Full year
2015	2014	2014
1,567	1,348	1,348
342	263	429
– 224	– 210	– 210
1,685	1,401	1,567

In 2015, a dividend totalling SEK 224 million was paid to the Parent Company's shareholders, corresponding to a dividend of SEK 8.50 per share. The Group does not have any incentive programmes resulting in a dilutive effect in the number of shares.

Consolidated cash flow statement (summary)

Q3	Q3	Q1 - Q3	Q1 - Q3	Rolling	Full year
2015	2014	2015	2014	12 months	2014
150	122	423	337	624	538
3	– 83	– 44	– 145	– 107	– 208
153	39	379	192	517	330
– 33	– 52	– 207	– 155	– 255	– 203
120	– 13	172	37	262	127
– 72	– 8	– 74	– 165	– 136	– 227
48	– 21	98	– 128	126	– 100
317	212	256	318	—	318
– 3	15	8	16	—	38
362	206	362	206	—	256

Earnings per share

	Q3	Q3	Q1 - Q3	Q1 - Q3	Rolling	Full year
SEK million	2015	2014	2015	2014	12 months	2014
Profit after tax	105	83	323	231	456	364
Adjusted earnings:
Amortisation of intangible assets arising from acquis.	3	4	11	12	15	16
Tax on amortisation	– 1	– 1	– 3	– 3	– 4	– 4
Adjusted earnings	107	86	331	240	467	376
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) *	3.99	3.15	12.28	8.78	17.34	13.84
Adjusted earnings per share (SEK) *	4.07	3.27	12.58	9.12	17.75	14.29

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

Five-year overview

	2014	2013	2012	2011	2010
Net sales (SEK million)	4,234	4,522	3,874	2,977	3,375
Operating profit (EBITA) (SEK million)	470	427	303	199	262
EBITA margin (%)	11.1	9.4	7.8	6.7	7.8
Operating profit (EBIT) (SEK million)	454	411	287	190	253
Profit after financial income and expense (SEK million)	462	403	272	183	243
Profit after tax (SEK million)	364	314	202	132	187
Cash flow after investments, excl. acq. and disposals (SEK million)	127	362	317	112	230
Cash conversion (%)	28	82	111	45	91
Return on capital employed (%) *	28.4	26.7	19.4	13.9	18.4
Return on shareholders' equity (%) *	25.0	24.9	17.7	11.6	16.5
Net financial assets (+) liabilities (-) (SEK million) *	59	122	– 113	– 119	– 34
Equity/assets ratio (%) *	54	52	44	52	50
Earnings per share (SEK)	13.84	11.94	7.68	5.02	7.11
Adjusted earnings per share (SEK)	14.29	12.39	8.13	5.28	7.37
Dividend per share (SEK)	8.50	8.00	6.00	5.00	6.00
Average number of employees	8,020	9,357	8,421	5,496	7,563

* Year 2010 has 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.

Quarterly data (summary)

		Q1	Q2	Q3	Q4	Full year
Net sales (SEK million)	2015	1,073	1,280	1,084	—	—
	2014	932	965	1,095	1,242	4,234
	2013	1,254	1,164	1,119	985	4,522
Operating profit (EBITDA) (SEK million)	2015	164	208	185	—	—
	2014	129	135	149	206	619
	2013	157	147	136	128	568
Operating profit (EBITA) (SEK million)	2015	123	167	142	—	—
	2014	94	100	112	164	470
	2013	122	111	103	91	427
EBITA margin (%)	2015	11.5	13.0	13.1	—	—
	2014	10.1	10.4	10.2	13.2	11.1
	2013	9.7	9.5	9.2	9.2	9.4
Operating profit (EBIT) (SEK million)	2015	119	163	139	—	—
	2014	90	96	108	160	454
	2013	118	107	99	87	411
Profit after financial income and expense (SEK million)	2015	121	162	137	—	—
	2014	88	104	108	162	462
	2013	113	105	97	88	403
Profit after tax (SEK million)	2015	93	125	105	—	—
	2014	67	81	83	133	364
	2013	85	78	74	77	314
Cash flow from operating activities (SEK million)	2015	217	9	153	—	—
	2014	61	92	39	138	330
	2013	40	157	92	223	512
	2015	8.25	0.34	5.82	—	—
Cash flow from operating activities per share (SEK)
	2014	2.32	3.50	1.48	5.25	12.54
	2013	1.52	5.97	3.50	8.48	19.46
Cash flow after investments, excl. acq. and disp. (SEK million)	2015	104	– 52	120	—	—
	2014	17	33	– 13	90	127
	2013	16	120	61	165	362
Cash flow after investm., excl. acq. and disp. per share (SEK)	2015	3.95	– 1.98	4.56	—	—
	2014	0.65	1.25	– 0.49	3.42	4.83
	2013	0.61	4.56	2.32	6.27	13.76
Earnings per share, basic and diluted (SEK)	2015	3.54	4.75	3.99	—	—
	2014	2.55	3.08	3.15	5.06	13.84
	2013	3.23	2.97	2.81	2.93	11.94
Adjusted earnings per share (SEK)	2015	3.65	4.86	4.07	—	—
	2014	2.66	3.19	3.27	5.17	14.29
	2013	3.35	3.07	2.93	3.04	12.39
Shareholders' equity per share (SEK)	2015	65	60	64	—	—
	2014	53	49	53	60	60
	2013	47	45	48	51	51
Return on total capital (%)	2015	17.6	19.5	19.8	—	—
	2014	14.3	14.3	14.3	17.1	17.1
	2013	13.6	13.7	15.0	15.9	15.9
Return on capital employed (%)	2015	28.5	31.6	32.0	—	—
	2014	24.7	24.1	24.6	28.4	28.4
	2013	23.3	23.0	25.5	26.7	26.7
Return on operating capital (%)	2015	34.7	36.4	37.3	—	—
	2014	29.1	28.0	27.4	33.0	33.0
	2013	26.3	26.9	28.8	32.6	32.6
Return on shareholders' equity (%)	2015	25.1	30.1	29.6	—	—
	2014	22.3	24.0	23.2	25.0	25.0
	2013	20.9	24.2	25.2	24.9	24.9

Quarterly data business areas

Net sales (SEK million)			Q1	Q2	Q3	Q4	Full year
Nolato Medical		2015	344	365	368	—	—
		2014	326	343	330	334	1,333
		2013	328	323	310	313	1,274
Nolato Telecom		2015	418	584	434	—	—
		2014	320	344	502	633	1,799
		2013	627	541	516	395	2,079
Nolato Industrial		2015	312	332	282	—	—
		2014	286	279	264	277	1,106
		2013	299	300	293	278	1,170
Group adjustments, Parent Company		2015	– 1	– 1	—	—	—
		2014	—	– 1	– 1	– 2	– 4
		2013	—	—	—	– 1	– 1
Group total		2015	1,073	1,280	1,084	—	—
		2014	932	965	1,095	1,242	4,234
		2013	1,254	1,164	1,119	985	4,522
Operating profit (EBITA) (SEK million)			Q1	Q2	Q3	Q4	Full year
Nolato Medical		2015	46	47	51	—	—
	EBITA margin (%)		13.4	12.9	13.9	—	—
		2014	45	46	42	43	176
	EBITA margin (%)		13.8	13.4	12.7	12.9	13.2
		2013	43	42	41	39	165
	EBITA margin (%)		13.1	13.0	13.2	12.5	13.0
Nolato Telecom		2015	47	101	63	—	—
	EBITA margin (%)		11.2	17.3	14.5	—	—
		2014	23	30	48	98	199
	EBITA margin (%)		7.2	8.7	9.6	15.5	11.1
		2013	57	43	35	31	166
	EBITA margin (%)		9.1	7.9	6.8	7.8	8.0
Nolato Industrial		2015	34	34	30	—	—
	EBITA margin (%)		10.9	10.2	10.6	—	—
		2014	31	30	28	29	118
	EBITA margin (%)		10.8	10.8	10.6	10.5	10.7
		2013	29	30	33	27	119
	EBITA margin (%)		9.7	10.0	11.3	9.7	10.2
Group adjustments, Parent Company		2015	– 4	– 15	– 2	—	—
		2014	– 5	– 6	– 6	– 6	– 23
		2013	– 7	– 4	– 6	– 6	– 23
Group total		2015	123	167	142	—	—
	EBITA margin (%)		11.5	13.0	13.1	—	—
		2014	94	100	112	164	470
	EBITA margin (%)		10.1	10.4	10.2	13.2	11.1
		2013	122	111	103	91	427
	EBITA margin (%)		9.7	9.5	9.2	9.2	9.4
Depreciation/amortisation (SEK million)			Q1	Q2	Q3	Q4	Full year
Nolato Medical		2015	20	22	22	—	—
		2014	18	19	19	20	76
		2013	18	20	18	19	75
Nolato Telecom		2015	11	11	10	—	—
		2014	10	10	11	14	45
		2013	10	10	9	10	39
Nolato Industrial		2015	14	12	14	—	—
		2014	11	10	11	12	44
		2013	11	10	10	12	43
Group total		2015	45	45	46	—	—
		2014	39	39	41	46	165
		2013	39	40	37	41	157

Group financial highlights

	Q3	Q3	Q1 - Q3	Q1 - Q3	Rolling	Full year
	2015	2014	2015	2014	12 months	2014
Net sales (SEK million)	1,084	1,095	3,437	2,992	4,679	4,234
Sales growth (%)	– 1	– 2	15	– 15	18	– 6
Percentage of sales outside Sweden (%)	75	80	78	78	79	79
Operating profit (EBITDA) (SEK million)	185	149	557	413	763	619
Operating profit (EBITA) (SEK million)	142	112	432	306	596	470
EBITA margin (%)	13.1	10.2	12.6	10.2	12.7	11.1
Profit after financial income and expense (SEK million)	137	108	420	300	582	462
Profit margin (%)	12.6	9.9	12.2	10.0	12.4	10.9
Profit after tax (SEK million)	105	83	323	231	456	364
Return on total capital (%)	19.8	14.3	19.8	14.3	19.8	17.1
Return on capital employed (%)	32.0	24.6	32.0	24.6	32.0	28.4
Return on operating capital (%)	37.3	27.4	37.3	27.4	37.3	33.0
Return on shareholders' equity (%)	29.6	23.2	29.6	23.2	29.6	25.0
Equity/assets ratio (%)	53	50	53	50	53	54
Debt/equity (%)	21	18	21	18	21	13
Interest coverage ratio (times)	82	48	87	44	101	58
Net investments affecting cash flow, excl. acq. and disposals (SEK million)	33	52	207	155	255	203
Cash flow after inv., excl. acq. and disp. (SEK million)	120	– 13	172	37	262	127
Cash conversion (%)	—	—	—	—	45	28
Net financial assets (+) / liabilities (-) (SEK million)	16	– 43	16	– 43	16	59
Earnings per share, basic and diluted (SEK)	3.99	3.15	12.28	8.78	17.34	13.84
Adjusted earnings per share (SEK)	4.07	3.27	12.58	9.12	17.75	14.29
Cash flow from operating activities per share (SEK)	5.82	1.48	14.41	7.30	19.65	12.54
Cash flow per share, excl. acq. and disposals (SEK)	4.56	– 0.49	6.54	1.41	9.96	4.83
Shareholders' equity per share (SEK)	—	—	64	53	—	60
Average number of employees	—	—	7,590	7,084	—	8,020

Definitions

Return on total capital Net debt

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 average capital employed. Capital employed consists of total capital less non-interestbearing liabilities and provisions.

Return on operating capital Operating profit (EBITDA)

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

Cash flow from operating activities per share Profit margin

Cash flow from operating activities, divided by the average number of shares. Profit after financial income and expense as a percentage of net sales.

Cash flow per share, excl. acq. and disposals

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

Cash conversion

Cash flow after investments, excl. acquisitions and disposals, divided by operating profit (EBIT). Cash flow and operating profit have been adjusted by non-recurring items.

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

Earnings per share Profit after tax, divided by the average number of shares.

Interest coverage ratio

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

Earnings before interest, taxes and depreciation/amortisation.

Operating profit (EBITA)

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

Parent Company income statement (summary)

2014	12 months	2014
	31	29
1	– 1	—
– 9	– 11	– 11
– 36	– 47	– 50
—	– 19	– 4
– 22	– 47	– 36
17	92	91
44	22	34
– 3	– 3	– 4
36	64	85
—	291	291
1	– 65	– 66
37	290	310
—	—	—
	22

Parent Company balance sheet (summary)

Subsidiary Jan-Sep 2014

SEK million						30/09/2015	30/09/2014	31/12/2014
Assets
Property, plant and equipment						1	1	1
Financial assets						1,151	1,014	1,127
Deferred tax assets						11	10	6
Total fixed assets						1,163	1,025	1,134
Other receivables						233	201	428
Cash and bank						—	47	17
Total current assets						233	248	445
Total assets						1,396	1,273	1,579
	Shareholders' equity and liabilities
Shareholders' equity						827	763	1,033
Untaxed reserves						161	181	161
Other provisions						10	8	9
Long-term liabilities						55	—	—
Current liabilities						343	321	376
	Total shareholders' equity and liabilities					1,396	1,273	1,579
Pledged assets						—	—	—
Contingent liabilities						124	132	133
	Transactions with related parties:
SEK million	Period	Services	Services	Interest	Interest	Res. from shares	Rec. fr. rel. part.	Liab. to rel. part.
Related party		sold	bought	income	expenses	in Group comp.	on bal. sh. date	on bal. sh. date
Subsidiary	Jan-Sep 2015	24	– 3	15	—	18	614	178

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.

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