Nolato B

Quarterly Report • May 4, 2020

INTERIM REPORT 2020

January - March

Strong sales growth for the Group

First quarter of 2020 in brief

• Sales totalled SEK 2,065 million (1,656)
• Operating profit (EBITA) rose to SEK 241 million (175) excl. a non-recurring item of SEK –14 million
• EBITA margin of 11.7% (10.6%) excl. a non-recurring item
• Profit after tax was SEK 177 million (131)
• Diluted earnings per share increased to SEK 7.08 (4.97) excl. a non-recurring item
• Cash flow after investments amounted to SEK −73 million (25)
• Very strong financial position

Nolato AB (publ) three-month interim report 2020

Comments from the President and CEO

Performance in the quarter was positive for all business areas. Integrated Solutions in particular achieved very strong growth.

Medical Solutions sales amounted to SEK 642 million (611); adjusted for currency, sales increased by 2%. Operating profit increased to SEK 87 million (78) and the EBITA margin rose to a strong 13.6% (12.8).

Growth in production volumes was healthy, but project revenues decreased. Projects for new products that Nolato is involved in have been delayed as a result of the coronavirus situation, while production in some segments has been positively affected.

Integrated Solutions sales rose sharply to SEK 854 million (512); adjusted for currency and group structure, sales increased by a substantial 50%. Operating profit increased to SEK 111 million (57) and the EBITA margin was a strong 13.0% (11.1).

Vaporiser Heating Products (VHP) saw substantial growth. Inventory build-up by customers made a positive contribution and we believe this will also continue in the second quarter and then decrease. The EMC area, which mainly has production in China, was significantly affected by the coronavirus situation during parts of the quarter, but volumes have subsequently seen a gradual increase and the quarter ended strongly.

Industrial Solutions sales amounted to SEK 570 million (533); adjusted for currency, sales increased by 4%. Operating profit totalled SEK 47 million (44), with an EBITA margin of 8.2% (8.3).

Taking into account the slowdown in the automotive industry at the end of the quarter, Industrial Solutions experienced strong growth. New customer projects within general industry that started late last year have continued to make a positive contribution. The suspension of operations by the automotive industry because of coronavirus is estimated to have negatively impacted the margin by around 1 percentage point, and these will have a bigger impact in the second quarter.

Christer Wahlquist, President and CEO, Nolato AB

"Our combination of

responsible business and indepth know-how in polymer materials and alternatives based on fossil-free raw materials is right for today's world. It's one of the reasons why we are gaining an increasingly strong position among our customers, by being an important part of their transition towards more sustainable development."

Group highlights

		Q1	Q1	Rolling	Full year
SEK million unless otherwise specified	Note	2020	2019	12 months	2019
Net sales	1	2,065	1,656	8,328	7,919
Operating profit (EBITDA)		319	259	1,323	1,263
Operating profit (EBITA)		227	175	947	895
EBITA margin, %		11.0	10.6	11.4	11.3
Operating profit (EBIT)	2	225	173	939	887
Profit after financial income and expense	2	221	166	912	857
Profit after tax		177	131	749	703
Basic earnings per share, SEK	3	6.67	4.98	28.29	26.60
Diluted earnings per share, SEK	3	6.67	4.97	28.29	26.60
Basic adjusted earnings per share, SEK	3	6.74	5.06	28.51	26.82
Diluted adjusted earnings per share, SEK	3	6.74	5.04	28.51	26.82
Cash flow after investments, excl. acquisitions and disposals		– 73	25	702	800
Net investments affecting cash flow, excl. acquisitions and disposals		70	105	325	360
Cash conversion, %		—	—	72	88
Return on capital employed, %		23.2	25.3	23.2	23.1
Return on shareholders' equity, %		26.0	25.9	26.0	25.5
Equity/assets ratio, %		49	49	49	48
Net financial assets, excl. pension- & lease liabilities		601	373	601	666

See definitions of IFRS measures and alternative performance measures on page 21.

Including a non-recurring item of SEK −14 million in operating profit in Q1 2020 and tax effects of SEK +3 million, which impacted profit after tax by SEK −11 million.

Including a non-recurring item of SEK −22 million in operating profit in Q4 2019 and tax effects of SEK +6 million, which impacted profit after tax by SEK −16 million.

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

First quarter 2020

• Sales totalled SEK 2,065 million (1,656); adjusted for currency and Group structure, this was a sharp increase of 17%
• Good performance across all business areas, with very strong growth for Integrated Solutions
• Operating profit (EBITA) was SEK 241 million (175) excl. a non-recurring item of SEK −14 million
• EBITA margin of 11.7% (10.6) excl. a non-recurring item

Sales

Consolidated sales totalled SEK 2,065 million (1,656). Adjusted for currency and Group structure, this was a substantial increase of 17%.

Medical Solutions sales amounted to SEK 642 million (611); adjusted for currency, sales increased by 2%. Growth in production volumes was healthy, but project revenues decreased. Projects for new products that Nolato is involved in have been delayed as a result of the coronavirus situation, while production in some segments has been positively affected.

Integrated Solutions sales increased significantly to SEK 854 million (512), driven mainly by considerable growth in Vaporiser Heating Products (VHP). Adjusted for currency and Group structure, sales increased by a significant 50%. Nolato believes that inventory build-up by VHP customers made a positive contribution in the quarter. This took place as a contingency amid the coronavirus situation in connection with the roll-out of new product variants. Nolato believes the situation involving inventory build-up and high volumes will also continue in the second quarter and then decrease. The EMC area, which mainly has production in China, was significantly affected by the coronavirus situation during parts of the quarter, but volumes have subsequently increased gradually and the quarter ended strongly. Mobile phone volumes were very low in the quarter as a result of the coronavirus situation in Asia.

Industrial Solutions sales amounted to SEK 570 million (533); adjusted for currency, sales increased by 4%. New customer projects within general industry that started late last year have continued to make a positive contribution. The hygiene area, which saw low volumes in the first half of last year, has normalised. In addition, three production units were affected by the automotive industry suspending manufacturing because of coronavirus in the final week of the quarter, and these production suspensions will have a bigger impact in the second quarter.

Positive development for all business areas

• Business areas' share of sales

• Sales by geographic markets

Profit •

The Group's operating profit (EBITA) was SEK 241 million (175) excl. a nonrecurring item. All business areas increased profit. Including non-recurring items, profit amounted to SEK 227 million (175).

Operating profit (EBITA) increased to SEK 87 million (78) for Medical Solutions, to SEK 111 million (57) for Integrated Solutions and to SEK 47 million (44) for Industrial Solutions.

The EBITA margin for Medical Solutions rose to a strong 13.6% (12.8). The increase was due to a change in the sales mix. For Integrated Solutions the EBITA margin rose to a strong 13.0% (11.1). Higher volumes contributed to the increase in the margin. The EBITA margin for Industrial Solutions was 8.2% (8.3). The suspension of operations by the automotive industry negatively impacted the margin by around 1 percentage point in the quarter. Overall, the Group's EBITA margin was 11.7% (10.6%) excluding nonrecurring items. Including non-recurring items, the margin was 11.0% (10.6).

Operating profit (EBIT) amounted to SEK 239 million (173) excluding nonrecurring items. Including non-recurring items, profit amounted to SEK 225 million (173).

Profit after net financial income/expense was SEK 221 million (166).

In January Nolato announced that it plans to consolidate operations in UKbased Nolato Jaycare and that one of the company's production plants is to be closed by December 2020 at the latest. The cost of the closure is estimated at approximately SEK 36 million, of which around SEK 30 million affects cash flow. Non-recurring costs of SEK 22 million were expensed in the fourth quarter of 2019 and the remaining SEK 14 million was expensed in the first quarter of 2020. These non-recurring items were recognised at Group level and have consequently not affected the profit of the business areas.

Profit after tax was SEK 177 million (131). Basic earnings per share totalled SEK 6.67 (4.98). Excluding non-recurring items, basic earnings per share amounted to SEK 7.08 (4.98). Adjusted basic earnings per share excluding amortisation of intangible assets arising from acquisitions amounted to SEK 6.74 (5.06). The effective tax rate was 19.9% (21.1).

Return on capital employed was 23.2% for the last 12-month period (23.1% for the 2019 calendar year). Return on equity was 26.0% for the last 12 months (25.5% for the 2019 calendar year).

Operating profit (EBITA)

• EBITA margin

• Business areas' share of operating profit (EBITA)

• Adjusted basic earnings per share

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

	Sales	Sales	Oper. prof.	Oper. prof.	EBITA marg.	EBITA marg.
SEK million	Q1/2020	Q1/2019	Q1/2020	Q1/2019	Q1/2020	Q1/2019
Medical Solutions	642	611	87	78	13.6%	12.8%
Integrated Solutions	854	512	111	57	13.0%	11.1%
Industrial Solutions	570	533	47	44	8.2%	8.3%
Intra-Group adj., Parent Co	– 1	—	– 18	– 4	—	—
Group total	2,065	1,656	227	175	11.0%	10.6%

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

Medical Solutions •

Sales and profit Q1 (SEK million)	2020	2019
Sales	642	611
Operating profit (EBITA)	87	78
EBITA margin (%)	13.6	12.8
Operating profit (EBIT)	86	77

Medical Solutions sales amounted to SEK 642 million (611); adjusted for currency, sales increased by 2%. Growth in production volumes was healthy, but project revenues decreased. Projects for new products that Nolato is involved in have been delayed as a result of the coronavirus situation, while production in some segments has been positively affected.

Operating profit (EBITA) rose to SEK 87 million (78).

The EBITA margin grew to a strong 13.6% (12.8). The increase was due to a change in the sales mix.

Integrated Solutions

Sales and profit Q1 (SEK million)			•
Sales	854	512
Operating profit (EBITA)	111	57
EBITA margin (%)	13.0	11.1
Operating profit (EBIT)	111	57

Integrated Solutions sales increased significantly to SEK 854 million (512), driven mainly by considerable growth in Vaporiser Heating Products (VHP). Adjusted for currency and Group structure, sales increased by a significant 50%. Nolato believes that inventory build-up by VHP customers made a positive contribution in the quarter. This took place as a contingency amid the coronavirus situation in connection with the roll-out of new product variants. Nolato believes the situation involving inventory build-up and high volumes will also continue in the second quarter and then decrease. The EMC area, which mainly has production in China, was significantly affected by the coronavirus situation during parts of the quarter, but volumes have subsequently increased gradually and the quarter ended strongly. The acquisition of Jabar in the US has gone well and according to plan, and contributed SEK 43 million to sales. Mobile phone volumes were very low in the quarter as a result of the coronavirus situation in Asia.

Operating profit (EBITA) rose to SEK 111 million (57).

The EBITA margin grew to a strong 13.0% (11.1). Higher volumes contributed to the increase in the margin.

Medical Solutions sales

• Medical Solutions operating profit (EBITA) & EBITA margin %

2020 2019 Integrated Solutions sales

• Integrated Solutions operating profit (EBITA) & EBITA margin %

Industrial Solutions •

Sales and profit Q1 (SEK million)	2020	2019
Sales	570	533
Operating profit (EBITA)	47	44
EBITA margin (%)	8.2	8.3
Operating profit (EBIT)	46	43

Industrial Solutions sales amounted to SEK 570 million (533); adjusted for currency, sales increased by 4%. New customer projects within general industry that started late last year have continued to make a positive contribution. The hygiene area, which saw low volumes in the first half of last year, has normalised. In addition, three production units were affected by the automotive industry suspending manufacturing because of coronavirus in the final week of the quarter, and these production suspensions will have a bigger impact in the second quarter.

Operating profit (EBITA) rose to SEK 47 million (44).

The EBITA margin was 8.2% (8.3). The suspension of operations by the automotive industry negatively impacted the margin by around 1 percentage point in the quarter.

Industrial Solutions sales

• Industrial Solutions operating profit (EBITA) & EBITA margin %

Cash flow •

Cash flow after investments was SEK –73 million (25) in the first quarter. The change was due to increased working capital requirements as a result of strong sales growth. This has been partly offset, however, by improved earnings. In addition, the coronavirus situation has resulted in increased inventory of raw materials and components.

Net investments affecting cash flow decreased to SEK 70 million (105).

Financial position

Interest-bearing assets increased to SEK 1,333 million (1,034), and interestbearing financial liabilities rose to SEK 732 million (661). Net financial assets consequently totalled SEK 601 million (373). The positive cash flow over the past 12-month period has increased net financial assets, even taking account of a dividend payment totalling SEK 368 million. There are also interestbearing pension liabilities of SEK 256 million (185) and interest-bearing lease liabilities of SEK 271 million (353). Shareholders' equity rose to SEK 3,220 million (2,783). The equity/assets ratio was 49% (49).

Cash flow after investments

Excluding acquisitions and disposals

• ratio Net financial assets & equity/assets

Financial position

SEK million	31/03/2020	31/03/2019	31/12/2019
Interest-bearing liabilities, credit institutions	– 732	– 661	– 696
Cash and bank	1,333	1,034	1,362
Net financial assets	601	373	666
Interest-bearing pension liabilities	– 256	– 185	– 246
Net financial assets, incl. pension liabilities	345	188	420
Lease liabilities	– 271	– 353	– 277
Net financial assets (+) / liabilities (–), including pension- & lease liabilities	74	– 165	143
Working capital	505	374	280
As a percentage of sales (average) (%)	5.3	4.6	3.2
Capital employed	4,480	3,982	4,184
Return on capital employed (average) (%)	23.2	25.3	23.1
Shareholders' equity	3,220	2,783	2,966
Return on shareholders' equity (average) (%)	26.0	25.9	25.5

Consolidated performance analysis

		Q1	Q1	Full year
SEK million	Note	2020	2019	2019
Net sales	1	2,065	1,656	7,919
Gross profit excl. depreciation/amortisation		406	353	1,612
As a percentage of net sales		19.7	21.3	20.4
Costs		– 87	– 94	– 349
As a percentage of net sales		4.2	5.7	4.4
Operating profit (EBITDA)		319	259	1,263
As a percentage of net sales		15.4	15.6	15.9
Depreciation and amortisation		– 92	– 84	– 368
Operating profit (EBITA)		227	175	895
As a percentage of net sales		11.0	10.6	11.3
Amortisation of intangible assets arising from acquisitions		– 2	– 2	– 8
Operating profit (EBIT)	2	225	173	887
Financial income and expense	2	– 4	– 7	– 30
Profit after financial income and expense	2	221	166	857
Tax		– 44	– 35	– 154
As a percentage of profit after financial income and expense		19.9	21.1	18.0
Profit after tax		177	131	703

Personnel • Contact:

The average number of employees during the period was 5,445 people (4,945). The increase in the number of employees is especially attributable to Integrated Solutions 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 2019 Annual Report on pages 53 – 55, and in Note 30 on pages 79 – 82.

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.

Seasonal effects

Nolato does not experience any significant seasonal variations. However, in the third quarter sales within Industrial Solutions, and to a certain degree Medical Solutions, can be negatively affected by the fact that the holiday period falls in this quarter both for Nolato and its customers.

• Christer Wahlquist, President and CEO, tel. +46705 804848.
• Per-Ola Holmström, CFO, tel. +46705 763340.
• Webcast conference call on 4 May: In connection with the interim report, Nolato will hold a webcast conference call in English at 2.30 p.m. CET. Nolato will be represented by President and CEO Christer Wahlquist and CFO Per-Ola Holmström, who will present the interim report and answer questions. Information regarding telephone numbers and website is available at

https://financialhearings.com/ event/12325. The presentation will be available at www.nolato.com/ir after publication of the interim report. The webcast will be available at the same address after the live broadcast.

Events after the balance sheet date

Nolato AB's Board of Directors has taken the decision to withdraw the previously announced dividend proposal to the 2020 AGM of SEK 14.50 per share. The decision has been taken despite Nolato's healthy financial position, and does not signal a change in the company's dividend policy or future dividend targets. The decision comes in light of the considerable uncertainty resulting from the impact of the COVID-19 pandemic. The Board has chosen to withdraw its dividend proposal to the AGM as a precautionary measure and in order to gain a better overview of the consequences of the pandemic, as well as to ensure financial flexibility for the company. The Board has decided to propose to the AGM on 4 May that no dividend be paid. However, over the course of the year the Board will give consideration to a dividend payment for the 2019 financial year if and when the situation changes. The Nomination Committee also proposes unchanged fees for members of the Board. No other significant events have occurred since the end of the period, but Nolato is operating in an environment that at the time of this report's publication is particularly affecting the Industrial Solutions business area in various ways.

Ownership and legal structure

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

Its Class B shares are listed on the Nasdaq Stockholm exchange in the Large Cap segment, where they are included in the Industrials sector.

There were 11,517 shareholders at 31 March. The largest shareholders are the Jorlén family with 10%, the Boström family with 9%, the Hamrin family, Lannebo Funds and Capital Group with 8% each, Didner & Gerge Funds, Nordea Funds and Handelsbanken Funds with 2% each, of the capital.

The Parent Company

For the parent company, which has no operating activities, sales amounted to SEK 18 million (19). Profit after financial income and expense amounted to SEK −55 million (−18), owing mainly to higher financial expense (exchange rate effects).

Contingent liabilities amounted to SEK 264 million (125).

Prior to publication this information constituted inside information that Nolato AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the above contact persons, at 13:30 CET on 4 May 2020.

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

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 interim report for the Group has been prepared in accordance with IAS 34 Interim Financial Reporting and applicable provisions of the Swedish Annual Accounts Act. Publication of this interim report is subject to the Swedish Securities Market Act.

The consolidated accounts have been prepared according to the same principles as in the most recent annual accounts, as set out in the Annual Report 2019.

IASB and the IFRS Interpretations Committee have issued new standards and statements that apply to financial years starting 1 January 2020 or later. There are no plans for the early application of new or amended standards for future application. None of the standards or interpretations published by IASB are expected to have a material impact on the Group or Parent Company's financial statements.

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

Financial information schedule

• Six-month interim report 2020: 17 July 2020
• Nine-month interim report 2020: 23 October 2020
• 2020 year-end report: 10 February 2021

Torekov, 4 May 2020 Nolato AB (publ) Christer Wahlquist, President and CEO

Nolato's business

Nolato is a global, advanced high-tech cooperation partner and manufacturer of polymer products and systems for leading customers in well-defined market areas such as medical technology, pharmaceuticals, consumer electronics, telecom, automotive, hygiene and other selected industrial sectors.

With its many years of experience, in-depth materials and processes expertise, early involvement in customer projects, advanced project management and detailed knowledge of each customer's specific requirements, Nolato is an effective and innovative partner.

Nolato's business model

Our business model is based on three decentralised business areas, which with their own decision-making and shared ambitions endeavour to fulfil our vision and financial targets.

The sharing of experience between our business areas, leading-edge technology, wide-ranging development and design know-how, advanced project management and efficient production allow us to establish long-term, innovative cooperation with our customers and partners and generate added value for both them and our shareholders. Our shared values of being professional, well organised and responsible are reflected in everything we do.

Nolato's strategies

• Early involvement in customers' development processes
• Close and long-term collaboration/partnerships with our customers
• Innovative, integrated and high-tech solutions
• High productivity/Lean manufacturing
• Advancing up the value chain/Greater added value
• Global presence
• Responsible business practice

Nolato is a Swedish group with operations in Europe, Asia and North America.

We develop and manufacture products in polymer materials such as plastic, silicone and TPE for leading customers within medical technology, pharmaceuticals, consumer electronics, telecom, automotive, hygiene and other selected industrial sectors.

Nolato's shares are listed on Nasdaq Stockholm in the Large Cap segment, where they are included in the Industrials sector.

www.nolato.com

Consolidated income statement (summary)

		Q1	Q1	Rolling	Full year
SEK million	Note	2020	2019	12 months	2019
Net sales	1	2,065	1,656	8,328	7,919
Cost of goods sold		– 1,749	– 1,387	– 7,033	– 6,671
Gross profit		316	269	1,295	1,248
Other operating income		16	—	18	2
Selling expenses		– 35	– 31	– 130	– 126
Administrative expenses		– 72	– 60	– 243	– 231
Other operating expenses		—	– 5	– 1	– 6
		– 91	– 96	– 356	– 361
Operating profit	2	225	173	939	887
Financial income and expense	2	– 4	– 7	– 27	– 30
Profit after financial income and expense	2	221	166	912	857
Tax		– 44	– 35	– 163	– 154
Profit after tax		177	131	749	703
All earnings are attrib. to the Parent Co.'s shareholders
Depreciation/amortisation regarding non-current assets		94	86	384	376
Basic earnings per share, SEK	3	6.67	4.98	28.29	26.60
Diluted earnings per share, SEK	3	6.67	4.97	28.29	26.60
Number of shares at the end of the period, before dilution		26,548,008	26,307,408	26,548,008	26,548,008
Number of shares at the end of the period, after dilution		26,548,008	26,369,708	26,548,008	26,548,982
Average number of shares, before dilution		26,548,008	26,307,408	26,479,926	26,431,806
Average number of shares, after dilution		26,548,008	26,374,955	26,480,121	26,432,001

At the end of the period, the Group had two incentive programmes: Incentive Programme 2016/2021 and Incentive Programme 2019/2024. For more information please see Note 3 Earnings per share on page 15.

Consolidated comprehensive income

	Q1	Q1	Rolling	Full year
SEK million	2020	2019	12 months	2019
Profit after tax	177	131	749	703
Other comprehensive income
Items that cannot be transferred to profit for the period
Revaluations of defined benefit pension plans	—	—	– 66	– 66
Tax attributable to items that cannot be transf. to profit for the period	—	—	11	11
	—	—	– 55	– 55
Items that have been converted or can be conv. into profit for the period
Translation diff. for the period on translation of foreign operations	78	61	38	21
Changes in the fair value of cash flow hedges for the period	– 1	– 1	2	2
Tax attributable to changes in the fair value of cash flow hedges	—	—	—	—
	77	60	40	23
Other comprehensive income, net of tax	77	60	– 15	– 32
Total comp. income for the period attrib. to the Parent Co.'s shareholders	254	191	734	671

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

Consolidated balance sheet (summary)

SEK million	31/03/2020	31/03/2019	31/12/2019
Assets
Non-current assets
Intangible non-current assets	892	796	852
Property, plant and equipment	1,887	1,900	1,839
Non-current financial assets	2	2	2
Other non-current receivables	2	1	1
Deferred tax assets	62	77	58
Total fixed assets	2,845	2,776	2,752
Current assets
Inventories	862	600	667
Accounts receivable	1,291	1,007	1,051
Other current assets2)	299	316	302
Cash and bank	1,333	1,034	1,362
Total current assets	3,785	2,957	3,382
Total assets	6,630	5,733	6,134
Shareholders' equity and liabilities
Shareholders' equity	3,220	2,783	2,966
Long-term liabilities and provisions1)	1,240	1,095	1,179
Deferred tax liabilities1)	101	109	110
Current liabilities and provisions1) 3)	2,069	1,746	1,879
Total liabilities and provisions	3,410	2,950	3,168
Total shareholders' equity and liabilities	6,630	5,733	6,134
1) Interest-bearing/non-interest-bearing liabilities and provisions:
Interest-bearing liabilities and provisions	1,259	1,199	1,219
Non-interest-bearing liabilities and provisions	2,151	1,751	1,949
Total liabilities and provisions	3,410	2,950	3,168

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 at

3) Derivative liabilities are included in current liabilities and provisions at

3	1	5
44	36	1

Changes in consolidated shareholders' equity (summary)

	Q1	Q1	Full year
SEK million	2020	2019	2019
Shareholders' equity at the beginning of the period	2,966	2,592	2,592
Total comprehensive income for the period	254	191	671
Dividends	—	—	– 368
Exercise of warrants included in incentive programmes	—	—	71
Shareholders' equity at the end of period attrib. to Parent Co's shareholders	3,220	2,783	2,966

In 2019, a dividend totalling SEK 368 million was paid to the Parent Company's shareholders, corresponding to a dividend of SEK 14.00 per share. At the end of the period, the Group had two incentive programmes: Incentive Programme 2016/2021 and Incentive Programme 2019/2024. In Incentive Programme 2016/2021, Series 2017/2020 has redemptions from 01/05/2020 to 15/12/2020 and Series 2018/2021 from 01/05/2021 to 15/12/2021. The subscription price is SEK 485.10 for Series 2017/2020 and SEK 502.00 for Series 2018/2021. The programmes have been taken into account in calculating the number of shares after dilution. Upon full subscription, the programmes provide a maximum of 921,700 new class B shares.

Consolidated cash flow statement (summary)

	Q1	Q1	Rolling	Full year
SEK million	2020	2019	12 months	2019
Cash flow from operating activities before changes in working capital	299	194	1,110	1,005
Changes in working capital	– 302	– 64	– 83	155
Cash flow from operating activities	– 3	130	1,027	1,160
Cash flow from investment activities	– 70	– 105	– 418	– 453
Cash flow before financing activities	– 73	25	609	707
Cash flow from financing activities	– 36	10	– 361	– 315
Cash flow for the period	– 109	35	248	392
Cash and cash equivalents at the beginning of the period	1,362	953	—	953
Exchange rate difference in liquid assets	80	46	—	17
Cash and cash equivalents at the end of the period	1,333	1,034	—	1,362

Note 1 Revenue

		Q1 - 2020				Q1 - 2019				Full year - 2019
		Med.	Integr.	Indust.		Med.	Integr.	Indust.		Med.	Integr.	Indust.
SEK million	Sum	Sol.	Sol.	Sol.	Sum	Sol.	Sol.	Sol.	Sum	Sol.	Sol.	Sol.
Sweden	291	46	3	242	308	38	11	259	1,173	157	35	981
Other Europe	987	420	297	270	820	417	167	236	3,148	1,620	548	980
North America	201	118	40	43	123	98	3	22	608	464	14	130
Asia	545	21	511	13	364	23	327	14	2,852	105	2,683	64
Rest of world	42	37	3	2	41	35	4	2	154	138	12	4
Elimination internal sales	– 1				—				– 16
Tot. revenues fr. customer contracts	2,065	642	854	570	1,656	611	512	533	7,919	2,484	3,292	2,159

The above table essentially covers products transferred at a specific date.

For the first three months of the year, the Group recognised an unchanged provision for impaired trade receivables.

Note 2 Reconciliation of consolidated income before tax

	Q1	Q1	Rolling	Full year
SEK million	2020	2019	12 months	2019
Operating profit (EBIT)
Medical Solutions	86	77	326	317
Integrated Solutions	111	57	481	427
Industrial Solutions	46	43	179	176
Group adjustments, Parent Company	– 18	– 4	– 47	– 33
Consolidated operating profit (EBIT)	225	173	939	887
Financial income and expense (not distributed by business areas)	– 4	– 7	– 27	– 30
Consolidated profit before tax	221	166	912	857

Including a non-recurring item of SEK −14 million in operating profit in Q1 2020 and tax effects of SEK +3 million, which impacted profit after tax by SEK −11 million. The non-recurring item has been recognised at Group level and has therefore not affected the earnings of the business areas.

Including a non-recurring item of SEK −22 million in operating profit in Q4 2019 and tax effects of SEK +6 million, which impacted profit after tax by SEK −16 million. The non-recurring item has been recognised at Group level and has therefore not affected the earnings of the business areas.

Note 3 Earnings per share (IFRS measures)

	Q1	Q1	Rolling	Full year
SEK million	2020	2019	12 months	2019
Profit after tax	177	131	749	703
Average number of shares, before dilution	26,548,008	26,307,408	26,479,926	26,431,806
Basic earnings per share (SEK)	6.67	4.98	28.29	26.60
Non-recurring items	11	—	27	16
Profit after tax excl. non-recurring items	188	131	776	719
Basic earnings per share excl. non-recurring items (SEK)	7.08	4.98	29.31	27.20
Dilutive shares from Series 2016/2019 incentive programme with
exercise price SEK 296.30 per share; total 240,600 warrants	—	67,547	—	—
Dilutive shares from Series 2017/2020 incentive programme with
exercise price SEK 485.10 per share; total 196,200 warrants	—	—	195	195
Dilutive shares from Series 2018/2021 incentive programme with
exercise price SEK 502.00 per share; total 193,500 warrants	—	—	—	—
Average number of shares, after dilution	26,548,008	26,374,955	26,480,121	26,432,001
Diluted earnings per share (SEK)	6.67	4.97	28.29	26.60
Diluted earnings per share excl. non-recurring items (SEK)	7.08	4.97	29.31	27.20
Number of shares at the end of the period, before dilution	26,548,008	26,307,408	26,548,008	26,548,008
Number of shares at the end of the period, after dilution	26,548,008	26,369,708	26,548,008	26,548,982

At the end of the period, the Group had two incentive programmes: Incentive Programme 2016/2021 and Incentive Programme 2019/2024. In Incentive Programme 2016/2021, Series 2017/2020 has redemptions from 01/05/2020 to 15/12/2020 and Series 2018/2021 from 01/05/2021 to 15/12/2021. The subscription price is SEK 485.10 for Series 2017/2020 and SEK 502.00 for Series 2018/2021. The programmes have been taken into account in calculating the number of shares after dilution. Upon full subscription, the programmes provide a maximum of 921,700 new class B shares.

Adjusted earnings per share (alternative performance measures)

	Q1	Q1	Rolling	Full year
SEK million	2020	2019	12 months	2019
Profit after tax	177	131	749	703
Adjusted earnings:
Amortisation of intangible assets arising from acquisitions	2	2	8	8
Tax on amortisation	—	—	– 2	– 2
Adjusted earnings	179	133	755	709
Average number of shares, before dilution	26,548,008	26,307,408	26,479,926	26,431,806
Adjusted basic earnings per share (SEK)	6.74	5.06	28.51	26.82
Non-recurring items	11	—	27	16
Adjusted earnings after tax, excl. non-recurring items	190	133	782	725
Adjusted basic earnings per share excl. non-recurring items (SEK)	7.16	5.06	29.53	27.43
Average number of shares, after dilution	26,548,008	26,374,955	26,480,121	26,432,001
Adjusted diluted earnings per share (SEK)	6.74	5.04	28.51	26.82
Adjusted diluted earnings per share excl. non-recurring items (SEK)	7.16	5.04	29.53	27.43

Five-year overview

IFRS measures	2019	2018	2017	2016	2015
Operating profit (EBIT) (SEK million)	887	941	749	443	556
Basic earnings per share (SEK)	26.60	27.44	21.74	12.77	15.97
Diluted earnings per share (SEK)	26.60	27.37	21.74	12.77	15.97

Alternative performance measures
Net sales (SEK million)	7,919	8,102	6,720	4,447	4,726
Operating profit (EBITA) (SEK million)	895	949	763	457	570
EBITA margin (%)	11.3	11.7	11.4	10.3	12.1
Profit after financial income and expense (SEK million)	857	921	731	438	555
Profit after tax (SEK million)	703	722	572	336	420
Cash flow after investments, excl. acq. and disposals (SEK million)	800	593	496	245	288
Cash conversion (%)	88	60	66	55	52
Return on capital employed (%)	23.1	29.7	26.6	20.6	29.6
Return on shareholders' equity (%)	25.5	30.4	29.4	19.0	25.3
Net financial assets (+) liabilities (–), excl. pension- & lease liabilities (SEK million)	666	341	31	– 206	249
Equity/assets ratio (%)	48	50	45	47	54
Adjusted basic earnings per share (SEK)	26.82	27.67	22.16	13.19	16.35
Adjusted diluted earnings per share (SEK)	26.82	27.59	22.15	13.19	16.35
Dividend per share (2019 proposal) (SEK)	—	14.00	12.50	10.50	10.00
Average number of employees	5,941	6,449	7,249	6,418	7,759

Including any non-recurring items.

Quarterly data (summary)

IFRS measures	Note		Q1	Q2	Q3	Q4	Full year
Operating profit (EBIT) (SEK million)	2	2020	225	—	—	—	—
	2	2019	173	232	236	246	887
		2018	261	264	203	213	941
Basic earnings per share (SEK)	3	2020	6.67	—	—	—	—
	3	2019	4.98	6.82	7.02	7.76	26.60
		2018	7.83	7.75	5.85	6.01	27.44
Diluted earnings per share (SEK)	3	2020	6.67	—	—	—	—
	3	2019	4.97	6.81	7.01	7.75	26.60
		2018	7.80	7.70	5.81	5.98	27.37
Alternative performance measures	Note		Q1	Q2	Q3	Q4	Full year
Net sales (SEK million)	1	2020	2,065	—	—	—	—
	1	2019	1,656	1,987	1,980	2,296	7,919
		2018	2,039	2,302	1,980	1,781	8,102
Operating profit (EBITDA) (SEK million)		2020	319	—	—	—	—
		2019	259	321	326	357	1,263
		2018	322	325	267	275	1,189
Operating profit (EBITA) (SEK million)		2020	227	—	—	—	—
		2019	175	233	238	249	895
		2018	264	266	205	214	949
EBITA margin (%)		2020	11.0	—	—	—	—
		2019	10.6	11.7	12.0	10.8	11.3
		2018	12.9	11.6	10.4	12.0	11.7
Profit after financial income and exp. (SEK million)	2	2020	221	—	—	—	—
	2	2019 2018	166 256	223 257	232 198	236 210	857 921
Profit after tax (SEK million)		2020	177	—	—	—	—
		2019	131	180	186	206	703
		2018	206	204	154	158	722
Cash flow from operating activities (SEK million)		2020	– 3	—	—	—	—
		2019	130	265	83	682	1,160
		2018	296	472	39	238	1,045
Cash fl. from operations per share bef. dilution (SEK)		2020	– 0.11	—	—	—	—
		2019	4.94	10.04	3.13	25.69	43.81
		2018	11.25	17.94	1.48	9.05	39.72
Cash flow after investments, excluding acquisitions		2020	– 73	—	—	—	—
and disposals (SEK million)		2019	25	178	– 4	601	800
		2018	187	352	– 68	122	593
Cash flow after investments, excl. acquisitions and		2020	– 2.75	—	—	—	—
disposals per share before dilution (SEK)		2019	0.95	6.75	– 0.15	22.64	30.19
		2018	7.11	13.38	– 2.58	4.64	22.54
Adjusted basic earnings per share (SEK)	3	2020	6.74	—	—	—	—
	3	2019	5.06	6.82	7.09	7.84	26.82
		2018	7.91	7.83	5.93	6.01	27.67
Shareholders' equity per share, before dilution (SEK)		2020	121	—	—	—	—
		2019	106	98	107	112	112
		2018	92	87	92	99	99
Return on total capital (%)		2020	15.7	—	—	—	—
		2019	16.1	15.2	15.5	15.6	15.6
		2018	18.8	19.6	19.1	18.4	18.4

Alternative performance measures		Q1	Q2	Q3	Q4	Full year
Return on capital employed (%)	2020	23.2	—	—	—	—
	2019	25.3	23.6	23.4	23.1	23.1
	2018	29.8	32.0	31.2	29.7	29.7
Return on operating capital (%)	2020	31.2	—	—	—	—
	2019	34.4	31.6	30.7	31.0	31.0
	2018	36.8	41.1	41.1	40.0	40.0
Return on shareholders' equity (%)	2020	26.0	—	—	—	—
	2019	25.9	24.5	24.7	25.5	25.5
	2018	32.6	34.9	33.1	30.4	30.4
Closing share price Nolato B (Nasdaq Stockholm)	2020	449.40	—	—	—	—
	2019	386.50	566.50	525.50	550.00	550.00
	2018	609.00	723.00	548.00	366.50	366.50

Including a non-recurring item of SEK −14 million in operating profit in Q1 2020 and tax effects of SEK +3 million, which impacted profit after tax by SEK −11 million.

Including a non-recurring item of SEK −22 million in operating profit in Q4 2019 and tax effects of SEK +6 million, which impacted profit after tax by SEK −16 million.

Including non-recurring items of SEK +20 million in Q1 2018 and SEK –17 million in Q3 2018, which affected operating profit by a net amount of SEK +3 million.

Quarterly data business areas

Alternative performance measures
Net sales (SEK million)	Note		Q1	Q2	Q3	Q4	Full year
Medical Solutions	1	2020	642	—	—	—	—
	1	2019	611	634	612	627	2,484
		2018	532	562	596	580	2,270
Integrated Solutions	1	2020	854	—	—	—	—
	1	2019	512	821	862	1,097	3,292
		2018	939	1,186	892	703	3,720
Industrial Solutions	1	2020	570	—	—	—	—
	1	2019	533	541	512	573	2,159
		2018	568	554	492	505	2,119
Group adjustments, Parent Company	1	2020	– 1	—	—	—	—
	1	2019	—	– 9	– 6	– 1	– 16
		2018	—	—	—	– 7	– 7
Group total	1	2020	2,065	—	—	—	—
	1	2019	1,656	1,987	1,980	2,296	7,919
		2018	2,039	2,302	1,980	1,781	8,102

Alternative performance measures
Operating profit (EBITA) (SEK million)			Q1	Q2	Q3	Q4	Full year
Medical Solutions		2020	87	—	—	—	—
	EBITA margin (%)		13.6	—	—	—	—
		2019	78	82	80	80	320
	EBITA margin (%)		12.8	12.9	13.1	12.8	12.9
		2018	69	73	76	77	295
	EBITA margin (%)		13.0	13.0	12.8	13.3	13.0
Integrated Solutions		2020	111	—	—	—	—
	EBITA margin (%)		13.0	—	—	—	—
		2019	57	107	116	147	427
	EBITA margin (%)		11.1	13.0	13.5	13.4	13.0
		2018	120	140	114	99	473
	EBITA margin (%)		12.8	11.8	12.8	14.1	12.7
Industrial Solutions		2020	47	—	—	—	—
	EBITA margin (%)		8.2	—	—	—	—
		2019	44	46	44	47	181
	EBITA margin (%)		8.3	8.5	8.6	8.2	8.4
		2018	57	55	35	39	186
	EBITA margin (%)		10.0	9.9	7.1	7.7	8.8
Group adjustments, Parent Company		2020	– 18	—	—	—	—
		2019	– 4	– 2	– 2	– 25	– 33
		2018	18	– 2	– 20	– 1	– 5
Group total		2020	227	—	—	—	—
	EBITA margin (%)		11.0	—	—	—	—
		2019	175	233	238	249	895
	EBITA margin (%)		10.6	11.7	12.0	10.8	11.3
		2018	264	266	205	214	949
	EBITA margin (%)		12.9	11.6	10.4	12.0	11.7

Including a non-recurring item of SEK −14 million in operating profit in Q1 2020. The non-recurring item has been recognised at Group level and has therefore not affected the earnings of the business areas.

Including a non-recurring item of SEK −22 million in operating profit in Q4 2019. The non-recurring item has been recognised at Group level and has therefore not affected the earnings of the business areas.

Including non-recurring items of SEK +20 million in Q1 2018 and SEK –17 million in Q3 2018, which affected operating profit by a net amount of SEK +3 million. The non-recurring items has been recognised at Group level and has therefore not affected the earnings of the business areas.

Depreciation/write-downs/amortisation (SEK million)		Q1	Q2	Q3	Q4	Full year
Medical Solutions	2020	41	—	—	—	—
	2019	39	40	40	41	160
	2018	28	28	28	28	112
Integrated Solutions	2020	17	—	—	—	—
	2019	17	17	16	16	66
	2018	8	8	8	7	31
Industrial Solutions	2020	36	—	—	—	—
	2019	30	32	34	35	131
	2018	25	25	28	26	104
Parent Company	2020	—	—	—	—	—
	2019	—	—	—	19	19
	2018	—	—	—	1	1
Group total	2020	94	—	—	—	—
	2019	86	89	90	111	376
	2018	61	61	64	62	248

Group financial highlights

		Q1	Q1	Rolling	Full year
IFRS measures	Note	2020	2019	12 months	2019
Basic earnings per share (SEK)	3	6.67	4.98	28.29	26.60
Diluted earnings per share (SEK)	3	6.67	4.97	28.29	26.60
Alternative performance measures
Net sales (SEK million)	1	2,065	1,656	8,328	7,919
Sales growth (%)		25	– 19	8	– 2
Percentage of sales outside Sweden (%)		86	81	86	85
Operating profit (EBITDA) (SEK million)		319	259	1,323	1,263
Operating profit (EBITA) (SEK million)1)		227	175	947	895
EBITA margin (%)1)		11.0	10.6	11.4	11.3
Profit after financial income and expense (SEK million)	2	221	166	912	857
Profit margin (%)1)		10.7	10.0	11.0	10.8
Profit after tax (SEK million)		177	131	749	703
Return on total capital (%)1)		15.7	16.1	15.7	15.6
Return on capital employed (%)1)		23.2	25.3	23.2	23.1
Return on operating capital (%)1)		31.2	34.4	31.2	31.0
Return on shareholders' equity (%)1)		26.0	25.9	26.0	25.5
Equity/assets ratio (%)		49	49	49	48
Debt/equity (%)		39	43	39	41
Interest coverage ratio (times)		30	21	27	25
Net investments affecting cash flow, excl. acq. and disposals (SEK million)		70	105	325	360
Cash flow after investments, excl. acq. and disposals (SEK million)		– 73	25	702	800
Cash conversion (%)1)		—	—	72	88
Net financial assets, excl. pension- & lease liabilities (SEK million)		601	373	601	666
Adjusted basic earnings per share (SEK)	3	6.74	5.06	28.51	26.82
Adjusted diluted earnings per share (SEK)	3	6.74	5.04	28.51	26.82
Cash flow from operations per share, before dilution (SEK)		– 0.11	4.94	38.76	43.81
Cash flow from operations per share, after dilution (SEK)		– 0.11	4.93	38.78	43.75
Cash flow after investments excluding acquisitions and disposals, per		– 2.75	0.95	23.00	30.19
share, before dilution (SEK)
Cash flow after investments excluding acquisitions and disposals, per		– 2.75	0.95	23.00	30.15
share, after dilution (SEK)
Shareholders' equity per share, before dilution (SEK)		121	106	121	112
Shareholders' equity per share, after dilution (SEK)		121	106	121	112
Average number of employees		5,445	4,945	—	5,941

1) KPIs calculated as specified on pages 22 and 23.

Including a non-recurring item of SEK −14 million in operating profit in Q1 2020 and tax effects of SEK +3 million, which impacted profit after tax by SEK −11 million.

Including a non-recurring item of SEK −22 million in operating profit in Q4 2019 and tax effects of SEK +6 million, which impacted profit after tax by SEK −16 million.

Definitions - IFRS measures

Earnings for the period that are attributable to the parent company's owners divided by the average number of outstanding shares.

Earnings per share Operating profit (EBIT)

Earnings before financial income and expense and taxes.

Definitions - Alternative performance measures

Nolato presents certain financial measures in this report that are not defined according to IFRS. Nolato considers that these measures provide valuable supplementary information for investors and company management, as they enable an assessment of trends and the company's performance. Since not all companies calculate financial measures in the same way, these are not always comparable to measures used by other companies. These financial measures should not therefore be regarded as substitutes for measures defined according to IFRS.

Adjusted earnings per share Interest coverage ratio

Profit after tax, excluding amortisation of intangible assets arising from acquisitions, divided by the average number of shares.

Average number of shares

The average basic number of shares comprises the parent company's weighted average number of outstanding shares during the period. After dilution, a weighted average of the shares that may be issued under the ongoing share warrant programme is added, if they are in-the-money, but only insofar as the average listed share price for the period exceeds the subscription price of the warrants.

Cash conversion Profit margin

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, if any.

Cash flow after investments, excl. acquisitions and disposals per share

Cash flow after investing activities excl. acquisitions and disposals, divided by the average number of shares.

Cash flow from operating activities per share Return on operating capital

Cash flow from operating activities, divided by the average number of shares.

Debt/equity ratio

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

Equity/assets ratio Operating profit (EBITA) as a percentage of net sales.

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

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

Net financial assets (+) / liabilities (–)

Interest-bearing liabilities from credit institutions less interestbearing assets.

Operating profit (EBITA)

Earnings before financial income and expense, taxes and amortisation of intangible assets arising from acquisitions.

Operating profit (EBITDA)

Earnings before financial income and expense, taxes and depreciation/amortisation.

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

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-interest-bearing liabilities and provisions.

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

Return on shareholders' equity

EBITA margin Return on total capital Profit after tax as a percentage of average shareholders' equity.

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

Forward-looking information

Some of the items reported relate to future events and actual outcomes may differ materially. In addition to those factors explicitly commented on, other factors may also materially affect the actual outcome, such as economic conditions, exchange rates and interest rate levels, political risks, competition and pricing, product development, commercialisation and technical difficulties, supply problems and customer credit losses.

Alternative performance measures

		Q1	Q1	Rolling	Full year
SEK million unless otherwise specified	Note	2020	2019	12 months	2019
Operating profit (EBITDA)		319	259	1,323	1,263
Non-recurring items		14	—	18	4
Adjusted operating profit (EBITDA)		333	259	1,341	1,267
Operating profit (EBIT)	2	225	173	939	887
Reversal of amortisation of intangible assets arising
in connection with acquisitions		2	2	8	8
Operating profit (EBITA)		227	175	947	895
Non-recurring items		14	—	36	22
Adjusted operating profit (EBITA)		241	175	983	917
EBITA margin (%)		11.0	10.6	11.4	11.3
Adjusted EBITA margin (%)		11.7	10.6	11.8	11.6
Profit after financial income and expense	2	221	166	912	857
Non-recurring items		14	—	36	22
Adjusted profit after financial income and expense		235	166	948	879
Profit margin (%)		10.7	10.0	11.0	10.8
Adjusted profit margin (%)		11.4	10.0	11.4	11.1
Profit after tax		177	131	749	703
Non-recurring items		14	—	36	22
Tax on non-recurring items		– 3	—	– 9	– 6
Adjusted profit after tax		188	131	776	719
Cash flow after investments, excluding acquisitions and disposals		—	—	702	800
Non-recurring items (affecting cash flow)		—	—	—	—
Adjusted cash flow after investments, excluding acq. and disp.		—	—	702	800
Operating profit (EBIT)	2	—	—	939	887
Non-recurring items		—	—	36	22
Adjusted operating profit (EBIT)		—	—	975	909
Cash conversion (%)		—	—	72	88

Including a non-recurring item of SEK −14 million in operating profit in Q1 2020 and tax effects of SEK +3 million, which impacted profit after tax by SEK −11 million. The non-recurring item has been recognised at Group level and has therefore not affected the earnings of the business areas.

Including a non-recurring item of SEK −22 million in operating profit in Q4 2019 and tax effects of SEK +6 million, which impacted profit after tax by SEK −16 million. The non-recurring item has been recognised at Group level and has therefore not affected the earnings of the business areas.

Alternative performance measures	Q1	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q1
SEK million unless otherwise specified	2020	2019	2019	2019	2019	2018	2018	2018	2018
Profit after financial income and exp., rolling 12 months	912	856	831	797	831
Financial expense, rolling 12 months	36	36	30	29	26
Adj. profit after financial inc. and exp., rolling 12 months	948	892	861	826	857
Total capital, at the end of period	6,630	6,134	6,051	5,593	5,733	5,156	5,229	5,381	5,148
Average total capital, last 5 quarters	6,028	5,733	5,552	5,418	5,329
Return on total capital (%)	15.7	15.6	15.5	15.2	16.1
Adj. profit after financial inc. and exp., rolling 12 months	948	892	861	826	857
Capital employed, at the end of period	4,480	4,184	4,022	3,771	3,982	3,387	3,225	3,131	3,188
Average capital employed, last 5 quarters	4,088	3,869	3,677	3,499	3,383
Return on capital employed (%)	23.2	23.1	23.4	23.6	25.3
Operating profit (EBIT), rolling 12 months	939	887	855	821	853
Capital employed, at the end of period	4,480	4,184	4,022	3,771	3,982	3,387	3,225	3,131	3,188
Cash and bank, at the end of period	– 1,333	– 1,362	– 851	– 828	– 1,034	– 953	– 818	– 891	– 817
Operating capital, at the end of period	3,147	2,822	3,171	2,943	2,948	2,434	2,407	2,240	2,371
Average operating capital, latest 5 quarters	3,006	2,864	2,781	2,594	2,480
Return on operating capital (%)	31.2	31.0	30.7	31.6	34.4
Profit after tax, rolling 12 months	749	703	655	623	647
Shareholders' equity, at the end of period	3,220	2,966	2,833	2,604	2,783	2,592	2,422	2,301	2,412
Average shareholders' equity, latest 5 quarters	2,881	2,756	2,647	2,540	2,502
Return on shareholders' equity (%)	26.0	25.5	24.7	24.5	25.9

Parent Company income statement (summary)

	Q1	Q1	Rolling	Full year
SEK million	2020	2019	12 months	2019
Net sales	18	19	59	60
Selling expenses	– 1	– 2	– 6	– 7
Administrative expenses	– 15	– 12	– 51	– 48
Other operating income	2	2	3	3
Other operating expenses	– 12	– 14	– 46	– 48
Operating profit	– 8	– 7	– 41	– 40
Profit from participations in Group companies	—	—	468	468
Financial income	3	4	9	10
Financial expenses	– 50	– 15	– 77	– 42
Profit after financial income and expense	– 55	– 18	359	396
Appropriations	—	—	210	210
Tax	8	7	– 42	– 43
Profit after tax	– 47	– 11	527	563
Depreciation/amortisation	—	—	—	—

Parent Company balance sheet (summary)

SEK million					31/03/2020		31/03/2019	31/12/2019
Assets
Intangible fixed assets						1	1	1
Property, plant and equipment						1	1	1
Financial assets					1,893		1,709	1,854
Deferred tax assets						3	1	—
Total fixed assets					1,898		1,712	1,856
Other receivables					896		1,028	954
Cash and bank					326		—	218
Total current assets					1,222		1,028	1,172
Total assets					3,120		2,740	3,028
Shareholders' equity and liabilities
Shareholders' equity					1,796		1,566	1,842
Untaxed reserves					229		199	229
Deferred tax liabilities						—	—	5
Other provisions						11	13	11
Long-term liabilities					726		568	670
Current liabilities					358		394	271
Total shareholders' equity and liabilities					3,120		2,740	3,028
Transactions with related parties	Period	Services sold	Services bought	Interest income	expenses	Interest Result from	Rec. fr. rel. shares in part. on bal.	Liab. to rel. part. on bal.
SEK million						Group com.	sheet date	sheet date
Subsidiary	Q1 2020	18	– 2	3	—	—	1,321	340
Subsidiary	Q1 2019	19	– 2	4	—	—	1,453	358

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.com • Website www.nolato.com