Nolato B

Quarterly Report • May 4, 2021

INTERIM REPORT 2021

January - March

All business areas achieve sales and profit growth

First quarter of 2021 in brief

• Sales increased to SEK 2,645 million (2,065)
• Operating profit (EBITA) rose to SEK 308 million (227)
• EBITA margin of 11.6% (11.0)
• Profit after tax was SEK 226 million (177)
• Diluted earnings per share increased to SEK 8.43 (6.67)
• Cash flow after investments amounted to SEK 71 million (−73)

Comments from the President and CEO - Best ever quarter and continued growth in Integrated Solutions volumes

Despite the prevailing conditions, all business areas achieved good performance in the first quarter, with very strong growth in Medical Solutions and Integrated Solutions. This resulted in Group sales increasing by a considerable 22%, adjusted for currency and acquisitions, and in EBITA exceeding SEK 300 million for the first time in a single quarter. This is once again a testament to our close customer relationships and our strong position as a global strategic partner for a raft of sector-leading companies. The strong performance has also led us to recently take decisions to further expand our production capacity.

Medical Solutions sales for the quarter totaled SEK 1,006 million (642), corresponding to organic growth of a notable 17%. Growth was good in most areas, but particularly in diagnostics, for which demand has increased partly because of the pandemic. The quarter also included a larger proportion of billing for development work and production equipment, which was around SEK 70 million higher than normal. Surgery continued to be adversely affected by the pandemic due to postponed operations, particularly in the US business, but the surgery segment ended the quarter slightly better. Operating profit (EBITA) rose by a remarkable 39% to SEK 121 million. The EBITA margin was 12.0% and, compared with last year, it was subject to a dilutive effect from the acquired US business.

Integrated Solutions sales totaled SEK 1,045 million (854), corresponding to organic growth of an impressive 40%, driven by strong growth in both Vaporiser Heating Products (VHP) and EMC. In line with our previous assessment, VHP volumes ramped up in the quarter, while EMC benefited from the 5G roll-out and our initiatives within Automotive. Nolato expects VHP volumes to grow and sees sales for this business area increasing by around 15% in the second quarter compared with the first quarter of the year. Operating profit (EBITA) rose by 13% to SEK 125 million. The EBITA margin was 12.0%, in line with the end of last year.

Industrial Solutions sales totaled SEK 595 million (570), corresponding to organic growth of 1%. There was a slightly negative impact from a components shortage in the automotive industry and effects of the pandemic in some areas. However, our efficiency improvement work has had the desired impact and operating profit measured as EBITA increased by a remarkable 40% to SEK 66 million. The EBITA margin was a strong 11.1%.

Christer Wahlquist, President and CEO, Nolato AB

"Nolato previously announced that the strong growth in Medical Solutions is resulting in this business area expanding production capacity in Switzerland, Hungary and Sweden. Expansion is proceeding according to plan and decisions have also recently been made to expand production capacity at existing plants in Poland and the US"

Group highlights

		Q1	Q1	Rolling	Full year
SEK million unless otherwise specified	Note	2021		2020 12 months	2020
Net sales	1	2,645	2,065	9,939	9,359
Operating profit (EBITDA)		414	319	1,551	1,456
Operating profit (EBITA)		308	227	1,147	1,066
EBITA margin, %		11.6	11.0	11.5	11.4
Operating profit (EBIT)	2	299	225	1,122	1,048
Profit after financial income and expense	2	286	221	1,079	1,014
Profit after tax		226	177	855	806
Basic earnings per share, SEK	3	8.45	6.67	32.06	30.27
Diluted earnings per share, SEK	3	8.43	6.67	32.01	30.24
Basic adjusted earnings per share, SEK	3	8.71	6.74	32.77	30.79
Diluted adjusted earnings per share, SEK	3	8.69	6.74	32.72	30.76
Cash flow after investments, excl. acquisitions and disposals		71	– 73	1,049	905
Net investments affecting cash flow, excl. acquisitions and disposals		178	70	455	347
Cash conversion, %		—	—	95	87
Return on capital employed, %		20.2	23.2	20.2	20.7
Return on shareholders' equity, %		23.8	26.0	23.8	23.9
Equity/assets ratio, %		43	49	43	43
Net financial liabilities (–) / assets (+), excluding pension- & lease liabilities		– 258	601	– 258	– 298

See definitions of IFRS measures and alternative performance measures on page 20.

Including a non-recurring item of SEK −14 million in operaƟng profit in Q1 2020 and tax effects of SEK +3 million, which impacted profit aŌer tax by SEK −11 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 2021

• Sales totaled SEK 2,645 million (2,065), adjusted for currency and acquisitions, which was a considerable 22% increase
• Good performance across all business areas, with very strong growth for Medical Solutions and Integrated Solutions
• Operating profit (EBITA) was SEK 308 million (227)
• EBITA margin of 11.6% (11.0) Sales
• Expansion with further production capacity, primarily in Medical Solutions

Sales

Consolidated sales totaled SEK 2,645 million (2,065). Adjusted for currency and acquisitions, this was a considerable 22% increase.

Medical Solutions sales totaled SEK 1,006 million (642); adjusted for currency and acquisitions, sales grew by a strong 17%. Growth was good in most areas, but particularly in diagnostics, which saw increased demand partly because of the pandemic. The quarter also saw a high level of billing for development work and production equipment. Surgery continued to be adversely affected by the pandemic due to postponed operations, particularly in the US business, although the surgery segment ended the quarter slightly better.

Integrated Solutions sales were SEK 1,045 million (854) on the back of growth in both Vaporiser Heating Products (VHP) and EMC. Adjusted for currency, sales increased by a remarkable 40%. Nolato expects VHP volumes to grow and sees sales for this business area increasing by around 15% in the second quarter compared with the first quarter of the year.

Industrial Solutions sales totaled SEK 595 million (570); adjusted for currency and acquisitions, sales grew by 1%. There was a slightly negative impact from a components shortage in the automotive industry and effects of the pandemic in some areas.

Profit •

Consolidated operating profit (EBITA) rose by an outstanding 36% to SEK 308 million (227) and all business areas increased their profit.

Operating profit (EBITA) increased to SEK 121 million (87) for Medical Solutions, to SEK 125 million (111) for Integrated Solutions and to SEK 66 million (47) for Industrial Solutions.

The EBITA margin for Medical Solutions was 12.0% (13.6). A lower operating margin in the acquired US business, consolidated since September 1, is having a dilutive effect, but the company's margin is stronger than in the fourth quarter of last year. For Integrated Solutions, the margin was 12.0% (13.0). The margin was consequently more in line with the situation at the end of last year. The EBITA margin for Industrial Solutions improved to a strong 11.1% (8.2). Increased efficiency in particular had a positive impact. Last year the halt in operations by the automotive industry negatively impacted the margin by around 1 percentage point. Overall, the Group's EBITA margin was 11.6% (11.0). Excluding non-recurring items, the margin last year was 11.7%.

Operating profit (EBIT) increased to SEK 299 million (225). Excluding nonrecurring items last year, profit amounted to SEK 299 million (239). SEK 14 million was expensed in the first quarter of last year as a non-recurring item for the closure of one of UK-based business unit Nolato Jaycare's production plants. This non-recurring item was recognized at Group level and did not impact the business areas' profit.

Profit after net financial income/expense rose to SEK 286 million (221). Profit after tax was SEK 226 million (177). Diluted earnings per share stood at SEK 8.43 (6.67). Adjusted earnings per share after dilution but excluding amortization of intangible assets arising from acquisitions amounted to SEK 8.69 (6.74). The effective tax rate was 21.0% (19.9).

Return on capital employed was 20.2% for the last 12-months (20.7% for the 2020 calendar year). Return on equity was 23.8% for the last 12 months (23.9% for the 2020 calendar year).

Operating profit (EBITA)

• EBITA margin

• Business areas' share of operating profit (EBITA)

• Adjusted diluted earnings per share

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

	Sales	Sales	EBITA		EBITA EBITA marg.	EBITA marg.
SEK million	Q1/2021	Q1/2020	Q1/2021	Q1/2020	Q1/2021	Q1/2020
Medical Solutions	1,006	642	121	87	12.0%	13.6%
Integrated Solutions	1,045	854	125	111	12.0%	13.0%
Industrial Solutions	595	570	66	47	11.1%	8.2%
Intra-Group adj., Parent Co	– 1	– 1	– 4	– 18	—	—
Group total	2,645	2,065	308	227	11.6%	11.0%

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)	2021	2020
Sales	1,006	642
Operating profit (EBITA)	121	87
EBITA margin (%)	12.0	13.6
Operating profit (EBIT)	114	86

Medical Solutions sales totaled SEK 1,006 million (642); adjusted for currency and acquisitions, sales grew by a strong 17%. Growth was good in most areas, but particularly in diagnostics, which saw increased demand partly because of the pandemic. The quarter also saw a high level of billing for development work and production equipment. Surgery continued to be adversely affected by the pandemic due to postponed operations, particularly in the US business, although the surgery segment ended the quarter slightly better. The integration of GW Plastics, which was acquired on September 1 last year, is proceeding to plan. Just over four-fifths of the business is reported within Medical Solutions. Nolato previously announced that the strong growth is resulting in this business area expanding its production capacity in Switzerland, Hungary and Sweden. This expansion is going according to plan and decisions have also recently been taken about expanding in Poland and the US.

Operating profit (EBITA) rose by a remarkable 39% to SEK 121 million (87). The EBITA margin for Medical Solutions was 12.0% (13.6). A lower operating margin in the acquired US business is having a dilutive effect, but the company's margin is stronger than in the fourth quarter of last year.

Medical Solutions sales

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

Integrated Solutions

Sales and profit Q1 (SEK million)
Sales	1,045	854
Operating profit (EBITA)	125	111
EBITA margin (%)	12.0	13.0
Operating profit (EBIT)	125	111

Integrated Solutions sales amounted to SEK 1,045 million (854), corresponding to a 22% increase in sales. Because the majority of the business area's billing takes place in foreign currency, the strengthening of the Swedish krona compared with the same period last year had a significant negative impact. Adjusted for currency, sales increased by an outstanding 40% on the back of strong growth in both Vaporiser Heating Products (VHP) and EMC. As Nolato had assessed previously, VHP volumes ramped up in the quarter. EMC saw an increase in Telecom volumes, driven by growth related to the roll-out of 5G. Nolato's EMC initiatives in Automotive have performed well, resulting in high growth. Nolato expects VHP volumes to grow and sees sales for this business area increasing by around 15% in the second quarter compared with the first quarter of the year.

Operating profit (EBITA) increased to SEK 125 million (111).

The EBITA margin was 12.0% (13.0). The margin was consequently in line with the situation at the end of last year.

2021 2020 Integrated Solutions sales

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

Industrial Solutions •

Sales and profit Q1 (SEK million)	2021	2020
Sales	595	570
Operating profit (EBITA)	66	47
EBITA margin (%)	11.1	8.2
Operating profit (EBIT)	64	46

Industrial Solutions sales totaled SEK 595 million (570); adjusted for currency and acquisitions, sales grew by 1%. There was a slightly negative impact from a components shortage in the automotive industry and effects of the pandemic in some areas. The integration of GW Plastics, which was acquired on September 1 last year, is proceeding to plan. Just under onefifth of the business is reported under Industrial Solutions.

Operating profit (EBITA) increased by a remarkable 40% to SEK 66 million (47).

The EBITA margin for Industrial Solutions rose to a strong 11.1% (8.2). Increased efficiency in particular had a positive impact. Last year the halt in operations by the automotive industry negatively impacted the margin by around 1 percentage point.

Industrial Solutions sales

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

Cash flow •

Cash flow after investments was SEK 71 million (−73) in the first quarter. The improvement in cash flow was due to increased profit and a smaller rise in working capital requirements compared with the same period last year, but was partly offset by increased investments.

Net investments affecting cash flow rose to SEK 178 million (70). Cash conversion for the last 12 months was 95% (87% for the 2020 calendar year).

Financial position

Interest-bearing assets increased to SEK 1,563 million (1,333), and interestbearing financial liabilities with credit institutions rose to SEK 1,821 million (732). Net financial liabilities consequently totaled SEK −258 million (+601). The positive cash flow over the past 12-month period has increased financial assets and no dividend has been paid, while the acquisition of GW Plastics Inc. in the third quarter increased financial liabilities. There are also interest-bearing pension liabilities of SEK 275 million (256) and interestbearing lease liabilities of SEK 357 million (271). Shareholders' equity rose to SEK 4,025 million (3,220). The equity/assets ratio was 43% (49). Adjusted for the proposed dividend of SEK 428 million, the equity/assets ratio is 40%.

Cash flow after investments

Excluding acquisitions and disposals

• Net financial liabilities/assets & equity/assets ratio %

Financial position

SEK million	31/03/2021	31/03/2020	31/12/2020
Interest-bearing liabilities, credit institutions	– 1,821	– 732	– 1,785
Cash and bank	1,563	1,333	1,487
Net financial liabilities (–) / assets (+)	– 258	601	– 298
Interest-bearing pension liabilities	– 275	– 256	– 274
Net financial liabilities (–) / assets (+), incl. pension liabilities	– 533	345	– 572
Lease liabilities	– 357	– 271	– 358
Net financial liabilities (–) / assets (+), including pension- & lease liabilities	– 890	74	– 930
Working capital	447	505	388
As a percentage of sales (average) (%)	4.8	5.3	3.6
Capital employed	6,479	4,480	6,116
Return on capital employed (average) (%)	20.2	23.2	20.7
Shareholders' equity	4,025	3,220	3,699
Return on shareholders' equity (average) (%)	23.8	26.0	23.9

Consolidated performance analysis

		Q1	Q1	Full year
SEK million	Note	2021	2020	2020
Net sales	1	2,645	2,065	9,359
Gross profit excl. depreciation/amortisation		529	406	1,893
As a percentage of net sales		20.0	19.7	20.2
Costs		– 115	– 87	– 437
As a percentage of net sales		4.3	4.2	4.7
Operating profit (EBITDA)		414	319	1,456
As a percentage of net sales		15.7	15.4	15.6
Depreciation and amortisation		– 106	– 92	– 390
Operating profit (EBITA)		308	227	1,066
As a percentage of net sales		11.6	11.0	11.4
Amortisation of intangible assets arising from acquisitions		– 9	– 2	– 18
Operating profit (EBIT)	2	299	225	1,048
Financial income and expense	2	– 13	– 4	– 34
Profit after financial income and expense	2	286	221	1,014
Tax		– 60	– 44	– 208
As a percentage of profit after financial income and expense		21.0	19.9	20.5
Profit after tax		226	177	806

Personnel • Contact:

The average number of employees during the period was 7,195 people (5,445). The increase in the number of employees is mainly attributable to Integrated Solutions' operations in China and the acquisition in the US.

Significant risks and uncertainty factors

The Group and parent company's business risks and risk management, as well as the management of financial risks, are described on pages 53–55 and in Note 30 on pages 83–86 of the 2020 annual accounts.

No events of material significance occurred in the period that materially affect or change these descriptions of the Group and parent company's risks and their management.

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 3.45 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/13231. 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

No significant events have occurred since the end of the period, but owing to Covid-19 Nolato is operating in an environment that at the time of this report's publication is affecting the Group in various ways.

Ownership and legal structure

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

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

There were 11,502 shareholders at 31 March. The largest shareholders are the Jorlén family and the Boström family with 9% each, the Hamrin family and Capital Group with 8% each, and Lannebo Funds with 7% of capital.

The Parent Company

For the parent company, which has no operating activities, sales amounted to SEK 20 million (18). Profit after financial income and expense amounted to SEK 42 million (–55), owing mainly to improved net financial items. Contingent liabilities totaled SEK 381 million (264).

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 2020.

IASB and the IFRS Interpretations Committee have issued new standards and statements that apply to financial years starting January 1, 2021, 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

• 2021 Annual General Meeting: 4 May 2021
• Six-month interim report 2021: 20 July 2021
• Nine-month interim report 2021: 28 October 2021
• 2021 year-end report: 7 February 2022

Torekov, 4 May 2021 Nolato AB (publ) Christer Wahlquist, President and CEO 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 3 p.m. CET on 4 May 2021.

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

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	2021		2020 12 months	2020
Net sales	1	2,645	2,065	9,939	9,359
Cost of goods sold		– 2,221	– 1,749	– 8,325	– 7,853
Gross profit		424	316	1,614	1,506
Other operating income		2	16	15	29
Selling expenses		– 42	– 35	– 145	– 138
Administrative expenses		– 85	– 72	– 306	– 293
Other operating expenses		—	—	– 56	– 56
		– 125	– 91	– 492	– 458
Operating profit	2	299	225	1,122	1,048
Financial income and expense	2	– 13	– 4	– 43	– 34
Profit after financial income and expense	2	286	221	1,079	1,014
Tax		– 60	– 44	– 224	– 208
Profit after tax		226	177	855	806
All earnings are attrib. to the Parent Co.'s shareholders
Depreciation/amortisation regarding non-current assets		115	94	429	408
Basic earnings per share, SEK	3	8.45	6.67	32.06	30.27
Diluted earnings per share, SEK	3	8.43	6.67	32.01	30.24
Number of shares at the end of the period, before dilution		26,744,208	26,548,008	26,744,208	26,744,208
Number of shares at the end of the period, after dilution		26,816,391	26,548,008	26,816,391	26,793,374
Average number of shares, before dilution		26,744,208	26,548,008	26,670,408	26,631,168
Average number of shares, after dilution		26,804,883	26,548,008	26,709,578	26,656,096

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 14.

Consolidated comprehensive income

	Q1	Q1	Rolling	Full year
SEK million	2021		2020 12 months	2020
Profit after tax	226	177	855	806
Other comprehensive income
Items that cannot be transferred to profit for the period
Revaluations of defined benefit pension plans	—	—	– 26	– 26
Tax attributable to items that cannot be transf. to profit for the period	—	—	4	4
	—	—	– 22	– 22
Items that have been converted or can be conv. into profit for the period
Translation diff. for the period on translation of foreign operations	106	78	– 111	– 139
Changes in the fair value of cash flow hedges for the period	– 8	– 1	– 18	– 11
Tax attributable to changes in the fair value of cash flow hedges	2	—	4	2
	100	77	– 125	– 148
Other comprehensive income, net of tax	100	77	– 147	– 170
Total comp. income for the period attrib. to the Parent Co.'s shareholders	326	254	708	636

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	31/03/2021	31/03/2020	31/12/2020
Assets
Non-current assets
Intangible non-current assets	2,185	892	2,093
Property, plant and equipment	2,528	1,887	2,402
Non-current financial assets	2	2	2
Other non-current receivables	2	2	1
Deferred tax assets	53	62	50
Total fixed assets	4,770	2,845	4,548
Current assets
Inventories	1,254	862	1,110
Accounts receivable	1,432	1,291	1,254
Other current assets2)	408	299	285
Cash and bank	1,563	1,333	1,487
Total current assets	4,657	3,785	4,136
Total assets	9,427	6,630	8,684
Shareholders' equity and liabilities
Shareholders' equity	4,025	3,220	3,699
Long-term liabilities and provisions1)	1,688	1,240	1,584
Deferred tax liabilities1)	216	101	223
Current liabilities and provisions1) 3)	3,498	2,069	3,178
Total liabilities and provisions	5,402	3,410	4,985
Total shareholders' equity and liabilities	9,427	6,630	8,684
1) Interest-bearing/non-interest-bearing liabilities and provisions:
Interest-bearing liabilities and provisions	2,453	1,259	2,417
Non-interest-bearing liabilities and provisions	2,949	2,151	2,568
Total liabilities and provisions	5,402	3,410	4,985
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	2	3	27

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

51 44 18

Changes in consolidated shareholders' equity (summary)

	Q1	Q1	Full year
SEK million	2021	2020	2020
Shareholders' equity at the beginning of the period	3,699	2,966	2,966
Total comprehensive income for the period	326	254	636
Share warrants included in incentive programmes	—	—	2
Exercise of warrants included in incentive programmes	—	—	95
Shareholders' equity at the end of period attrib. to Parent Co's shareholders	4,025	3,220	3,699

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 2018/2021 has redemptions from 01/05/2021 to 15/12/2021. The subscription price is SEK 502.00 for Series 2018/2021. In Incentive Programme 2019/2024, Series 2020/2023 has redemptions from 01/05/2023 to 15/12/2023. The subscription price is SEK 928.80 for Series 2020/2023.The programmes have been taken into account in calculating the number of shares after dilution. Upon full subscription, the programmes provide a maximum of 488,250 new class B shares.

Consolidated cash flow statement (summary)

	Q1	Q1	Rolling	Full year
SEK million	2021		2020 12 months	2020
Cash flow from operating activities before changes in working capital	380	299	1,138	1,057
Changes in working capital	– 131	– 302	278	107
Cash flow from operating activities	249	– 3	1,416	1,164
Cash flow from investment activities	– 178	– 70	– 1,803	– 1,695
Cash flow before financing activities	71	– 73	– 387	– 531
Cash flow from financing activities	– 61	– 36	705	730
Cash flow for the period	10	– 109	318	199
Cash and cash equivalents at the beginning of the period	1,487	1,362	—	1,362
Exchange rate difference in liquid assets	66	80	—	– 74
Cash and cash equivalents at the end of the period	1,563	1,333	—	1,487

Note 1 Revenue

			Q1 - 2021	Q1 - 2020				Full year - 2020
SEK million	Sum	Med. Sol.	Integr. Sol.	Indust. Sol.	Sum	Med. Sol.	Integr. Sol.	Indust. Sol.	Sum	Med. Sol.	Integr. Sol.	Indust. Sol.
Sweden	261	34		5 222	291	46	3	242	971	154	12	805
Other Europe	1,305	540	488	277	987	420	297	270		4,611 1,824 1,678 1,109
North America	465	361	37	67	201	118	40	43	1,225	853	152	220
Asia	564	39	500	25	545	21	511	13	2,390		122 2,204	64
Rest of world	51	32	15	4	42	37	3	2	165	136	22	7
Elimination internal sales	– 1				– 1				– 3
Tot. revenues fr. customer contracts		2,645 1,006 1,045			595 2,065	642	854			570 9,359 3,089 4,068 2,205

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

For the first three months of the year, the Group recognized increased provision of impaired trade receivables of SEK 7 million. Impairment losses are recognized in the cost of goods sold.

Note 2 Reconciliation of consolidated income before tax

	Q1	Q1	Rolling	Full year
SEK million	2021		2020 12 months	2020
Operating profit (EBIT)
Medical Solutions	114	86	419	391
Integrated Solutions	125	111	560	546
Industrial Solutions	64	46	181	163
Group adjustments, Parent Company	– 4	– 18	– 38	– 52
Consolidated operating profit (EBIT)	299	225	1,122	1,048
Financial income and expense (not distributed by business areas)	– 13	– 4	– 43	– 34
Consolidated profit before tax	286	221	1,079	1,014

Including a non-recurring item of SEK −14 million in operaƟng 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.

Note 3 Earnings per share (IFRS measures)

	Q1	Q1	Rolling	Full year
SEK million	2021		2020 12 months	2020
Profit after tax	226	177	855	806
Average number of shares, before dilution	26,744,208	26,548,008	26,670,408	26,631,168
Basic earnings per share (SEK)	8.45	6.67	32.06	30.27
Non-recurring items	—	11	14	25
Profit after tax excl. non-recurring items	226	188	869	831
Basic earnings per share excl. non-recurring items (SEK)	8.45	7.08	32.58	31.20
Dilutive shares from Series 2017/2020 incentive programme with
exercise price SEK 485.10 per share; total 196,200 warrants	—	—	4,027	4,222
Dilutive shares from Series 2018/2021 incentive programme with
exercise price SEK 502.00 per share; total 193,500 warrants	60,675	—	35,143	20,706
Average number of shares, after dilution	26,804,883	26,548,008	26,709,578	26,656,096
Diluted earnings per share (SEK)	8.43	6.67	32.01	30.24
Diluted earnings per share excl. non-recurring items (SEK)	8.43	7.08	32.54	31.17
Number of shares at the end of the period, before dilution	26,744,208	26,548,008	26,744,208	26,744,208
Number of shares at the end of the period, after dilution	26,816,391	26,548,008	26,816,391	26,793,374

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 2018/2021 has redemptions from 01/05/2021 to 15/12/2021. The subscription price is SEK 502.00 for Series 2018/2021. In Incentive Programme 2019/2024, Series 2020/2023 has redemptions from 01/05/2023 to 15/12/2023. The subscription price is SEK 928.80 for Series 2020/2023.The programmes have been taken into account in calculating the number of shares after dilution. Upon full subscription, the programmes provide a maximum of 488,250 new class B shares.

Adjusted earnings per share (alternative performance measures)

	Q1	Q1	Rolling	Full year
SEK million	2021		2020 12 months	2020
Profit after tax	226	177	855	806
Adjusted earnings:
Amortisation of intangible assets arising from acquisitions	9	2	25	18
Tax on amortisation	– 2	—	– 6	– 4
Adjusted earnings	233	179	874	820
Average number of shares, before dilution	26,744,208	26,548,008	26,670,408	26,631,168
Adjusted basic earnings per share (SEK)	8.71	6.74	32.77	30.79
Non-recurring items	—	11	14	25
Adjusted earnings after tax, excl. non-recurring items	233	190	888	845
Adjusted basic earnings per share excl. non-recurring items (SEK)	8.71	7.16	33.30	31.73
Average number of shares, after dilution	26,804,883	26,548,008	26,709,578	26,656,096
Adjusted diluted earnings per share (SEK)	8.69	6.74	32.72	30.76
Adjusted diluted earnings per share excl. non-recurring items (SEK)	8.69	7.16	33.25	31.70

Five-year overview

IFRS measures	2020	2019	2018	2017	2016
Operating profit (EBIT) (SEK million)	1,048	887	941	749	443
Basic earnings per share (SEK)	30.27	26.60	27.44	21.74	12.77
Diluted earnings per share (SEK)	30.24	26.60	27.37	21.74	12.77

Alternative performance measures
Net sales (SEK million)	9,359	7,919	8,102	6,720	4,447
Operating profit (EBITA) (SEK million)	1,066	895	949	763	457
EBITA margin (%)	11.4	11.3	11.7	11.4	10.3
Profit after financial income and expense (SEK million)	1,014	857	921	731	438
Profit after tax (SEK million)	806	703	722	572	336
Cash flow after investments, excl. acq. and disposals (SEK million)	905	800	593	496	245
Cash conversion (%)	87	88	60	66	55
Return on capital employed (%)	20.7	23.1	29.7	26.6	20.6
Return on shareholders' equity (%)	23.9	25.5	30.4	29.4	19.0
Net financial liabilities (–) / financial assets (+), excl. pension- & lease liabilities (SEK million)	– 298	666	341	31	– 206
Equity/assets ratio (%)	43	48	50	45	47
Adjusted basic earnings per share (SEK)	30.79	26.82	27.67	22.16	13.19
Adjusted diluted earnings per share (SEK)	30.76	26.82	27.59	22.15	13.19
Dividend per share (2020 proposal) (SEK)	16.00	—	14.00	12.50	10.50
Average number of employees	6,721	5,941	6,449	7,249	6,418

Including any non-recurring items.

Quarterly data (summary)

IFRS measures	Note		Q1	Q2	Q3		Q4 Full year
Operating profit (EBIT) (SEK million)	2	2021	299	—	—	—	—
	2	2020	225	267	282	274	1,048
		2019	173	232	236	246	887
Basic earnings per share (SEK)	3	2021	8.45	—	—	—	—
	3	2020	6.67	7.79	7.92	7.89	30.27
		2019	4.98	6.82	7.02	7.76	26.60
Diluted earnings per share (SEK)	3	2021	8.43	—	—	—	—
	3	2020	6.67	7.79	7.90	7.87	30.24
		2019	4.97	6.81	7.01	7.75	26.60
Alternative performance measures	Note		Q1	Q2	Q3		Q4 Full year
Net sales (SEK million)	1	2021	2,645	—	—	—	—
	1	2020	2,065	2,307	2,500	2,487	9,359
		2019	1,656	1,987	1,980	2,296	7,919
Operating profit (EBITDA) (SEK million)		2021	414	—	—	—	—
		2020	319	360	388	389	1,456
		2019	259	321	326	357	1,263
Operating profit (EBITA) (SEK million)		2021	308	—	—	—	—
		2020	227	269	287	283	1,066
		2019	175	233	238	249	895
EBITA margin (%)		2021	11.6	—	—	—	—
		2020	11.0	11.7	11.5	11.4	11.4
		2019	10.6	11.7	12.0	10.8	11.3
Profit after financial income and exp. (SEK million)	2	2021	286	—	—	—	—
	2	2020	221	257	267	269	1,014
		2019	166	223	232	236	857
Profit after tax (SEK million)		2021	226	—	—	—	—
		2020	177	207	211	211	806
		2019	131	180	186	206	703
Cash flow from operating activities (SEK million)		2021	249	—	—	—	—
		2020	– 3	748	76	343	1,164
		2019	130	265	83	682	1,160
Cash fl. from operations per share bef. dilution (SEK)		2021	9.31	—	—	—	—
		2020	– 0.11	28.16	2.85	12.83	43.72
		2019	4.94 71	10.04 —	3.13 —	25.69 —	43.81
Cash flow after investments, excluding acquisitions		2021	– 73	685	82	211	— 905
and disposals (SEK million)		2020 2019	25	178	– 4	601	800
Cash flow after investments, excl. acquisitions and		2021	2.65	—	—	—	—
disposals per share before dilution (SEK)		2020	– 2.75	25.79	3.08	7.89	34.00
		2019	0.95	6.75	– 0.15	22.64	30.19
Adjusted basic earnings per share (SEK)	3	2021	8.71	—	—	—	—
	3	2020	6.74	7.83	8.07	8.15	30.79
		2019	5.06	6.82	7.09	7.84	26.82
Shareholders' equity per share, before dilution (SEK)		2021	150	—	—	—	—
		2020	121	126	137	138	138
		2019	106	98	107	112	112
Return on total capital (%)		2021	13.8	—	—	—	—
		2020	15.7	15.8	14.7	14.1	14.1
		2019	16.1	15.2	15.5	15.6	15.6

Alternative performance measures		Q1	Q2	Q3		Q4 Full year
Return on capital employed (%)	2021	20.2	—	—	—	—
	2020	23.2	23.4	21.8	20.7	20.7
	2019	25.3	23.6	23.4	23.1	23.1
Return on operating capital (%)	2021	28.0	—	—	—	—
	2020	31.2	33.1	30.9	29.2	29.2
	2019	34.4	31.6	30.7	31.0	31.0
Return on shareholders' equity (%)	2021	23.8	—	—	—	—
	2020	26.0	25.9	25.0	23.9	23.9
	2019	25.9	24.5	24.7	25.5	25.5
Closing share price Nolato B (Nasdaq Stockholm)	2021	778.00	—	—	—	—
	2020	449.40	628.00	873.00	832.00	832.00
	2019	386.50	566.50	525.50	550.00	550.00

Including a non-recurring item of SEK −17 million in operaƟng profit in Q3 2020 and tax effects of SEK +3 million, which impacted profit aŌer tax by SEK −14 million.

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

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

Quarterly data business areas

Alternative performance measures
Net sales (SEK million)	Note		Q1	Q2	Q3		Q4 Full year
Medical Solutions	1	2021	1,006	—	—	—	—
	1	2020	642	700	796	951	3,089
		2019	611	634	612	627	2,484
Integrated Solutions	1	2021	1,045	—	—	—	—
	1	2020	854	1,149	1,158	907	4,068
		2019	512	821	862	1,097	3,292
Industrial Solutions	1	2021	595	—	—	—	—
	1	2020	570	459	547	629	2,205
		2019	533	541	512	573	2,159
Group adjustments, Parent Company	1	2021	– 1	—	—	—	—
	1	2020	– 1	– 1	– 1	—	– 3
		2019	—	– 9	– 6	– 1	– 16
Group total	1	2021	2,645	—	—	—	—
	1	2020	2,065	2,307	2,500	2,487	9,359
		2019	1,656	1,987	1,980	2,296	7,919

Alternative performance measures
Operating profit (EBITA) (SEK million)			Q1	Q2	Q3	Q4	Full year
Medical Solutions		2021	121	—	—	—	—
	EBITA margin (%)		12.0	—	—	—	—
		2020	87	100	103	112	402
	EBITA margin (%)		13.6	14.3	12.9	11.8	13.0
		2019	78	82	80	80	320
	EBITA margin (%)		12.8	12.9	13.1	12.8	12.9
Integrated Solutions		2021	125	—	—	—	—
	EBITA margin (%)		12.0	—	—	—	—
		2020	111	166	160	111	548
	EBITA margin (%)		13.0	14.4	13.8	12.2	13.5
		2019	57	107	116	147	427
	EBITA margin (%)		11.1	13.0	13.5	13.4	13.0
Industrial Solutions		2021	66	—	—	—	—
	EBITA margin (%)		11.1	—	—	—	—
		2020	47	11	48	62	168
	EBITA margin (%)		8.2	2.4	8.8	9.9	7.6
		2019	44	46	44	47	181
	EBITA margin (%)		8.3	8.5	8.6	8.2	8.4
Group adjustments, Parent Company		2021	– 4	—	—	—	—
		2020	– 18	– 8	– 24	– 2	– 52
		2019	– 4	– 2	– 2	– 25	– 33
Group total		2021	308	—	—	—	—
	EBITA margin (%)		11.6	—	—	—	—
		2020	227	269	287	283	1,066
	EBITA margin (%)		11.0	11.7	11.5	11.4	11.4
		2019	175	233	238	249	895
	EBITA margin (%)		10.6	11.7	12.0	10.8	11.3

Including a non-recurring item of SEK −17 million in operaƟng profit in Q3 2020. The non-recurring item has been recognized at Group level and has therefore not affected the earnings of the business areas.

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

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

Depreciation/write-downs/amortization (SEK million)		Q1	Q2	Q3		Q4 Full year
Medical Solutions	2021	61	—	—	—	—
	2020	41	41	48	63	193
	2019	39	40	40	41	160
Integrated Solutions	2021	15	—	—	—	—
	2020	17	16	15	15	63
	2019	17	17	16	16	66
Industrial Solutions	2021	39	—	—	—	—
	2020	36	36	43	36	151
	2019	30	32	34	35	131
Parent Company	2021	—	—	—	—	—
	2020	—	—	—	1	1
	2019	—	—	—	19	19
Group total	2021	115	—	—	—	—
	2020	94	93	106	115	408
	2019	86	89	90	111	376

Group financial highlights

		Q1	Q1	Rolling	Full year
IFRS measures	Note	2021		2020 12 months	2020
Basic earnings per share (SEK)	3	8.45	6.67	32.06	30.27
Diluted earnings per share (SEK)	3	8.43	6.67	32.01	30.24
Alternative performance measures
Net sales (SEK million)	1	2,645	2,065	9,939	9,359
Sales growth (%)		28	25	19	18
Percentage of sales outside Sweden (%)		90	86	91	90
Operating profit (EBITDA) (SEK million)		414	319	1,551	1,456
Operating profit (EBITA) (SEK million)1)		308	227	1,147	1,066
EBITA margin (%)1)		11.6	11.0	11.5	11.4
Profit after financial income and expense (SEK million)	2	286	221	1,079	1,014
Profit margin (%)1)		10.8	10.7	10.9	10.8
Profit after tax (SEK million)		226	177	855	806
Return on total capital (%)1)		13.8	15.7	13.8	14.1
Return on capital employed (%)1)		20.2	23.2	20.2	20.7
Return on operating capital (%)1)		28.0	31.2	28.0	29.2
Return on shareholders' equity (%)1)		23.8	26.0	23.8	23.9
Equity/assets ratio (%)		43	49	43	43
Debt/equity (%)		61	39	61	65
Interest coverage ratio (times)		27	30	27	28
Net investments affecting cash flow, excl. acq. and disposals (SEK million)		178	70	455	347
Cash flow after investments, excl. acq. and disposals (SEK million)		71	– 73	1,049	905
Cash conversion (%)1)		—	—	95	87
Net financial assets, excl. pension- & lease liabilities (SEK million)		– 258	601	– 258	– 298
Adjusted basic earnings per share (SEK)	3	8.71	6.74	32.77	30.79
Adjusted diluted earnings per share (SEK)	3	8.69	6.74	32.72	30.76
Cash flow from operations per share, before dilution (SEK)		9.31	– 0.11	53.15	43.72
Cash flow from operations per share, after dilution (SEK)		9.29	– 0.11	53.01	43.66
Cash flow after investments excluding acquisitions and disposals, per		2.65	– 2.75	39.33	34.00
share, before dilution (SEK)
Cash flow after investments excluding acquisitions and disposals, per		2.65	– 2.75	39.27	33.95
share, after dilution (SEK)
Shareholders' equity per share, before dilution (SEK)		150	121	150	138
Shareholders' equity per share, after dilution (SEK)		150	121	150	138
Average number of employees		7,195	5,445	—	6,721

1) KPIs calculated as specified on pages 21 and 22.

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

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

Equity/assets ratio

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

Profit after tax as a percentage of average shareholders' equity.

EBITA margin Return on total capital

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	2021		2020 12 months	2020
Operating profit (EBITDA)		414	319	1,551	1,456
Non-recurring items		—	14	17	31
Adjusted operating profit (EBITDA)		414	333	1,568	1,487
Operating profit (EBIT)	2	299	225	1,122	1,048
Reversal of amortisation of intangible assets arising
in connection with acquisitions		9	2	25	18
Operating profit (EBITA)		308	227	1,147	1,066
Non-recurring items		—	14	17	31
Adjusted operating profit (EBITA)		308	241	1,164	1,097
EBITA margin (%)		11.6	11.0	11.5	11.4
Adjusted EBITA margin (%)		11.6	11.7	11.7	11.7
Profit after financial income and expense	2	286	221	1,079	1,014
Non-recurring items		—	14	17	31
Adjusted profit after financial income and expense		286	235	1,096	1,045
Profit margin (%)		10.8	10.7	10.9	10.8
Adjusted profit margin (%)		10.8	11.4	11.0	11.2
Profit after tax		226	177	855	806
Non-recurring items		—	14	17	31
Tax on non-recurring items		—	– 3	– 3	– 6
Adjusted profit after tax		226	188	869	831
Cash flow after investments, excluding acquisitions and disposals		—	—	1,049	905
Non-recurring items (affecting cash flow)		—	—	36	36
Adjusted cash flow after investments, excluding acq. and disp.		—	—	1,085	941
Operating profit (EBIT)	2	—	—	1,122	1,048
Non-recurring items		—	—	17	31
Adjusted operating profit (EBIT)		—	—	1,139	1,079
Cash conversion (%)		—	—	95	87

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

Alternative performance measures	Q1	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q1
SEK million unless otherwise specified	2021	2020	2020	2020	2020	2019	2019	2019	2019
Profit after financial income and exp., rolling 12 months	1,078	1,015	980	945	912
Financial expense, rolling 12 months	41	38	38	35	36
Adj. profit after financial inc. and exp., rolling 12 months	1,119	1,053	1,018	980	948
Total capital, at the end of period	9,427	8,684	9,113	6,638	6,630	6,134	6,051	5,593	5,733
Average total capital, last 5 quarters	8,098	7,440	6,913	6,209	6,028
Return on total capital (%)	13.8	14.1	14.7	15.8	15.7
Adj. profit after financial inc. and exp., rolling 12 months	1,119	1,053	1,018	980	948
Capital employed, at the end of period	6,479	6,116	6,167	4,514	4,480	4,184	4,022	3,771	3,982
Average capital employed, last 5 quarters	5,551	5,092	4,673	4,194	4,088
Return on capital employed (%)	20.2	20.7	21.8	23.4	23.2
Operating profit (EBIT), rolling 12 months	1,122	1,048	1,019	974	939
Capital employed, at the end of period	6,479	6,116	6,167	4,514	4,480	4,184	4,022	3,771	3,982
Cash and bank, at the end of period	– 1,563	– 1,487	– 1,438	– 1,906	– 1,333	– 1,362	– 851	– 828	– 1,034
Operating capital, at the end of period	4,916	4,629	4,729	2,608	3,147	2,822	3,171	2,943	2,948
Average operating capital, latest 5 quarters	4,006	3,587	3,295	2,938	3,006
Return on operating capital (%)	28.0	29.2	30.9	33.1	31.2
Profit after tax, rolling 12 months	855	806	801	776	749
Shareholders' equity, at the end of period	4,025	3,699	3,653	3,353	3,220	2,966	2,833	2,604	2,783
Average shareholders' equity, latest 5 quarters	3,590	3,378	3,205	2,995	2,881
Return on shareholders' equity (%)	23.8	23.9	25.0	25.9	26.0

Parent Company income statement (summary)

	Q1	Q1	Rolling	Full year
SEK million	2021		2020 12 months	2020
Net sales	20	18	71	69
Selling expenses	– 2	– 1	– 7	– 6
Administrative expenses	– 13	– 15	– 55	– 57
Other operating income	5	2	17	14
Other operating expenses	– 11	– 12	– 39	– 40
Operating profit	– 1	– 8	– 13	– 20
Profit from participations in Group companies	—	—	516	516
Financial income	49	3	78	32
Financial expenses	– 6	– 50	24	– 20
Profit after financial income and expense	42	– 55	605	508
Appropriations	—	—	180	180
Tax	7	8	– 54	– 53
Profit after tax	49	– 47	731	635
Depreciation/amortisation	—	—	1	1

Parent Company balance sheet (summary)

Assets 1 1 — Intangible fixed assets 1 1 1 Property, plant and equipment 3,634 1,893 3,533 Financial assets — 3 — Deferred tax assets 3,636 1,898 3,534 Total fixed assets 742 896 721 Other receivables 375 326 477 Cash and bank 1,117 1,222 1,198 Total current assets 4,753 3,120 4,732 Total assets Shareholders' equity and liabilities 2,622 1,796 2,572 Shareholders' equity 269 229 269 Untaxed reserves 2 — 9 Deferred tax liabilities 7 11 7 Other provisions 709 726 669 Long-term liabilities 1,144 358 1,206 Current liabilities 4,753 3,120 4,732 Total shareholders' equity and liabilities	SEK million	31/03/2021	31/03/2020	31/12/2020

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 2021	20	– 6	18	—	—	2,370	364
Subsidiary	Q1 2020	18	– 6	3	—	—	1,321	340

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, Nolatovägen 32, SE-269 78 Torekov, Sweden • Tel. +46 431 442290 • Fax +46 431 442291 • Corp. id. number 556080-4592 • E-mail info@nolato.com • Website www.nolato.com