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Nolato B
Quarterly Report • Oct 26, 2023
2950_10-q_2023-10-26_d48a3d98-0ba4-43ba-98c7-4dc216b4dc0d.pdf
Quarterly Report
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INTERIM REPORT 2023
January - September
Continued adaptation of total costs and concentration of the Chinese business
Third quarter of 2023 in brief
- Sales totaled SEK 2,340 million (2,626)
- of SEK 60 million (0) • Operating profit (EBITA) was SEK 193 million (214), excluding a non-recurring item
- EBITA margin of 8.2% (8.1), excl. a non-recurring item
- Profit after tax amounted to SEK 129 million (160), excl. a non-recurring item
- Diluted earnings per share were SEK 0.48 (0.59), excl. a non-recurring item
- Cash flow after investments rose to SEK 188 million (166), excl. acquisitions
First nine months of 2023 in brief
- Sales totaled SEK 7,294 million (8,410)
- Operating profit (EBITA) was SEK 584 million (745), excl. a non-recurring item
- EBITA margin of 8.0% (8.9) excl. a non-recurring item
- Profit after tax was SEK 420 million (551), excl. a non-recurring item
- Diluted earnings per share totaled SEK 1.56 (2.05), excl. a non-recurring item
- Cash flow after investments rose to SEK 366 million (196), excl. acquisitions
- Sustained strong financial position
Comments from the President and CEO - Adaptation of
total costs and strategic price increases
Adjusted for currency, the Group's net sales decreased by 15% in the third quarter to SEK 2,340 million, which was somewhat lower than in the second quarter of this year due to the vacation period. The decline in sales relative to last year is entirely attributable to markedly lower volumes in Integrated Solutions, and means that VHP products now account for less than 5% of the Group's total sales. The adjusted EBITA margin increased slightly compared with the second quarter of this year, amounting to 8.2%, and we are continuing to adapt total costs to boost profitability in all our units. One of the measures we are taking is to concentrate our Chinese
Christer Wahlquist, President and CEO, Nolato AB
business, which resulted in the third quarter being impacted by a non-recurring cost of SEK 60 million at Group level. We are also looking at how we can achieve sales synergies between Integrated and Industrial Solutions by working together to market our offering to a broader section of the value chain, thus taking on even larger contracts. Cash flow after investments, excluding acquisitions, grew to SEK 188 million, owing to reduced inventory and lower trade receivables.
Medical Solutions sales increased by 1%, adjusted for currency. Most of our market areas are continuing to expand, while sales in the surgery area and particularly in vitro diagnostics (IVD) declined. The latter was due to ongoing inventory adjustments and a slight change in the customer mix compared with last year. The EBITA margin was 9.5% and this business area now accounts for two-thirds of Group earnings.
The decline in Integrated Solutions sales compared with last year was mainly attributable to a change in the sourcing strategy of a previously significant customer in the VHP area. At the same time, several of our consumer electronics customers have seen reduced end-customer demand due to the economic slowdown. The significantly lower volumes resulted in the EBITA margin falling to 3.0%. Our EMC business continues to perform well in a number of areas, particularly within automotive, which is offset by the telecom area due to a markedly slower 5G roll-out.
Industrial Solutions sales increased by 2%, adjusted for currency. Supply chain disruptions, particularly at our automotive customers, are now having less of an impact than previously. However, we saw a decline in demand for consumer discretionary goods owing to weaker economic conditions, which we believe will impact the fourth quarter as well. The EBITA margin rose to 9.3%.
In the near future, our focus is on improving our margins by adapting total costs in each unit and introducing strategic price increases, which will lay the ground for profitable and sustainable growth over time. Our in-depth production expertise, strong customer relationships and a presence on three continents allow us to harness business opportunities, expand our customer base and continually advance our market positions.
| Q3 | Q3 | Q1 - Q3 | Q1 - Q3 | Rolling | Full year | ||
|---|---|---|---|---|---|---|---|
| SEK million unless otherwise specified | Note | 2023 | 2022 | 2023 | 2022 12 months | 2022 | |
| Net sales | 1 | 2,340 | 2,626 | 7,294 | 8,410 | 9,658 | 10,774 |
| Operating profit (EBITDA) | 276 | 343 | 935 | 1,115 | 1,231 | 1,411 | |
| Operating profit (EBITA) | 133 | 214 | 524 | 745 | 687 | 908 | |
| EBITA margin, % | 5.7 | 8.1 | 7.2 | 8.9 | 7.1 | 8.4 | |
| Operating profit (EBIT) | 2 | 123 | 205 | 492 | 715 | 644 | 867 |
| Profit after financial income and expense | 2 | 102 | 197 | 467 | 689 | 653 | 875 |
| Profit after tax | 69 | 160 | 360 | 551 | 506 | 697 | |
| Earnings per share, basic and diluted, SEK | 3 | 0.26 | 0.59 | 1.34 | 2.05 | 1.88 | 2.59 |
| Adjusted earnings per share, basic and diluted, SEK | 3 | 0.29 | 0.62 | 1.43 | 2.13 | 2.00 | 2.70 |
| Cash flow after investm., excl. acquis. and disposals | 188 | 166 | 366 | 196 | 178 | 8 | |
| Net investm. affecting cash flow, excl. acq. and disp. | 92 | 109 | 319 | 352 | 418 | 451 | |
| Cash conversion, % | — | — | — | — | 25 | 1 | |
| Return on capital employed, % | — | — | 9.4 | 16.7 | 9.4 | 12.8 | |
| Return on shareholders' equity, % | — | — | 9.4 | 19.2 | 9.4 | 13.6 | |
| Equity/assets ratio, % | — | — | 54 | 51 | 54 | 54 | |
| Net financial liabilities (−), excluding pension- & lease | |||||||
| liabilities | — | — | – 1,003 | – 580 | – 1,003 | – 708 |
Group highlights
See definitions of IFRS measures and alternative performance measures on page 22.
Including a non-recurring item of SEK −60 million in operaƟng profit and profit aŌer tax in Q3 2023. Including a non-recurring item of SEK 41 million in profit after financial items in rolling 12 months and full year 2022, which also impacted the profit after tax.
This document is a translation from Swedish. In the event of any difference between this version and the Swedish original, the latter shall prevail.
Third quarter 2023
- Sales totaled SEK 2,340 million (2,626), which, adjusted for currency, was a decrease of 15%
- Concentration of the Chinese business and a non-recurring item of SEK 60 million expensed in the quarter
- Operating profit (EBITA) was SEK 193 million (214), excluding a nonrecurring item of SEK 60 million (0)
- SEK 20 million in electricity subsidies from Swedish authorities included in earnings
- EBITA margin of 8.2% (8.1), excluding a non-recurring item
- Cash flow after investments rose to SEK 188 million (166), excluding acquisitions
Sales
Consolidated sales totaled SEK 2,340 million (2,626). Adjusted for currency, this was a decrease of 15%. Medical Solutions and Industrial Solutions contributed to net sales performance, while a sharp decline in volumes in Integrated Solutions had an adverse impact.
Medical Solutions sales amounted to SEK 1,320 million (1,245); adjusted for currency, sales increased by 1%. In vitro diagnostics (IVD) volumes declined further in the quarter due to continued inventory adjustments and a change in the customer mix. The surgery area also saw slightly lower volumes in the quarter, while other areas experienced healthy growth.
Integrated Solutions sales totaled SEK 330 million (745). This was a decrease of some 57%, adjusted for currency and acquisitions. Low volumes and a change in sourcing strategy at a previously significant customer were the main reasons for the lower sales in the quarter. Furthermore, sales were impacted by reduced end-customer demand at most other consumer electronics customers. Sales in the EMC business totaled SEK 170 million (185). The automotive area increased significantly, while the telecom area experienced lower volumes. There is hesitancy over investments in the telecom equipment market, which is having a negative impact, while Nolato is continuing to win market share in other segments.
Industrial Solutions sales amounted to SEK 691 million (638); adjusted for currency, sales increased by 2%. Automotive volumes increased and supply chain disruptions had less of an impact than previously. Demand for products supplied in the consumer discretionary sector was slightly lower, and this is expected to continue in the fourth quarter due to weaker economic conditions.
Continued adaptation of total
• Operating profit (EBITA)
• EBITA margin
The Group's operating profit (EBITA) was SEK 193 million (214), excluding a non-recurring item of SEK 60 million. The non-recurring item relates to costs in connection with the concentration of the Chinese business, as detailed in the press release of August 24. These costs have been charged at Group level in the quarter and are not included in the business areas' earnings.
Operating profit (EBITA) increased to SEK 126 million (104) for Medical Solutions, while for Integrated Solutions it declined to SEK 10 million (77), and for Industrial Solutions it rose to SEK 64 million (33). Nolato received SEK 20 million in electricity subsidies from Swedish authorities, half of which is included in Medical Solutions earnings and half in Industrial Solutions.
The EBITA margin for Medical Solutions rose to 9.5% (8.4), with a positive impact from electricity subsidies. For Integrated Solutions, the margin was 3.0% (10.3). Significantly lower volumes had a negative impact on the margin. The EBITA margin for Industrial Solutions increased to 9.3% (5.2). Less disruption in the automotive supply chain has boosted production efficiency, which combined with electricity subsidies had a positive impact on the margin. Overall, the Group's EBITA margin was 8.2% (8.1), excluding a non-recurring item.
Operating profit (EBIT) amounted to SEK 183 million (205), excluding a non-recurring item.
Operating profit after net financial income/expense was SEK 162 million (197), excluding a non-recurring item.
Profit after tax was SEK 129 million (160), excluding a non-recurring item. Basic and diluted earnings per share amounted to SEK 0.48 (0.59), excluding a non-recurring item. Adjusted basic and diluted earnings per share, excluding amortization of intangible assets arising from acquisitions, amounted to SEK 0.51 (0.62), excluding a non-recurring item.
Sales, operating profit (EBITA) and EBITA margin by business area
| Sales | Sales | EBITA | EBITA EBITA marg. | EBITA marg. | ||
|---|---|---|---|---|---|---|
| SEK million | Q3/2023 | Q3/2022 | Q3/2023 | Q3/2022 | Q3/2023 | Q3/2022 |
| Medical Solutions | 1,320 | 1,245 | 126 | 104 | 9.5% | 8.4% |
| Integrated Solutions | 330 | 745 | 10 | 77 | 3.0% | 10.3% |
| Industrial Solutions | 691 | 638 | 64 | 33 | 9.3% | 5.2% |
| Intra-Group adj., Parent Co | – 1 | – 2 | – 67 | — | — | — |
| Group total | 2,340 | 2,626 | 133 | 214 | 5.7% | 8.1% |
Operating profit (EBITA): Earnings before financial income and expense, taxes and amortization of intangible assets arising from acquisitions. Including a non-recurring item of SEK −60 million in operaƟng profit (EBITA) in Q3 2023.
Profit • Earnings per share
First nine months 2023
Consolidated sales totaled SEK 7,294 million (8,410); a decrease of 18% adjusted for currency and acquisitions.
Sales for Medical Solutions rose by 6% to SEK 4,008 million (3,547), while for Integrated Solutions they decreased by 63% to SEK 1,136 million (2,904) and increased for Industrial Solutions by 3% to SEK 2,155 million (1,967), all percentages adjusted for currency and acquisitions.
The Group's operating profit (EBITA) was SEK 584 million (745), excluding a non-recurring item. Including the non-recurring item, operating profit (EBITA) amounted to SEK 524 million (745). Overall, the Group's EBITA margin was 8.0% (8.9) excluding a non-recurring item.
Operating profit (EBIT) amounted to SEK 552 million (715), excluding a non-recurring item.
Profit after net financial income/expense was SEK 527 million (689) excluding a non-recurring item.
Profit after tax amounted to SEK 420 million (551), excluding a nonrecurring item. Diluted earnings per share were SEK 1.56 (2.05), excluding a non-recurring item. Including the non-recurring item, earnings per share amounted to SEK 1.34 (2.05). Adjusted earnings per share after dilution but excluding amortization of intangible assets arising from acquisitions amounted to SEK 1.65 (2.13), excluding a non-recurring item. The effective tax rate was 20.3% (20.0), excluding a non-recurring item.
Return on capital employed was 9.4% for the last 12 months (12.8% for the 2022 calendar year). Return on equity was 9.4% for the last 12 months (13.6% for the 2022 calendar year).
Medical Solutions •
| Sales and profit 9 months (SEK million) | 2023 | 2022 |
|---|---|---|
| Sales | 4,008 | 3,547 |
| Operating profit (EBITA) | 396 | 331 |
| EBITA margin (%) | 9.9 | 9.3 |
| Operating profit (EBIT) | 372 | 309 |
Medical Solutions sales amounted to SEK 4,008 million (3,547); adjusted for currency, sales increased by 6%. Most market areas experienced good growth, apart from in vitro diagnostics (IVD), which was at a lower level compared with the same period last year due to continued inventory adjustments in the value chain and a change in the customer mix at the end of the period. The charging on of price increases in materials only had a marginally positive effect.
Operating profit (EBITA) for Medical Solutions rose to SEK 396 million (331).
The EBITA margin for Medical Solutions was 9.9% (9.3).
Integrated Solutions
| Sales and profit 9 months (SEK million) | ||
|---|---|---|
| Sales | 1,136 | 2,904 |
| Operating profit (EBITA) | 48 | 309 |
| EBITA margin (%) | 4.2 | 10.6 |
| Operating profit (EBIT) | 47 | 308 |
Integrated Solutions sales amounted to SEK 1,136 million (2,904); adjusted for currency and acquisitions, sales decreased by some 63%. Most consumer electronics customers were affected by reduced demand from end-customers, but it was a change in the sourcing strategy of a previously significant customer that primarily resulted in lower volumes. The EMC business increased sales to SEK 515 million (508), SEK 11 million of which was attributable to acquisitions. Increased market share in automotive made a positive contribution to growth, while sluggish activity and inventory adjustments in 5G roll-out had an adverse impact on telecom. Nolato acquired UK-based P&P Technology in April. The company, which has annual sales equivalent to approximately SEK 25 million with good profitability, provides component- and materials-based electronics shielding solutions. The acquisition provides Nolato with complementary production technologies, an expanded customer base and a stronger presence in the UK.
Operating profit (EBITA) for Integrated Solutions was SEK 48 million (309). The EBITA margin for Integrated Solutions was 4.2% (10.6). Significantly lower volumes had a negative impact on the margin.
Medical Solutions sales
2023 2022 Integrated Solutions sales
• Integrated Solutions operating profit (EBITA) & EBITA margin %
Industrial Solutions •
| Sales and profit 9 months (SEK million) | 2023 | 2022 |
|---|---|---|
| Sales | 2,155 | 1,967 |
| Operating profit (EBITA) | 166 | 110 |
| EBITA margin (%) | 7.7 | 5.6 |
| Operating profit (EBIT) |
Industrial Solutions sales amounted to SEK 2,155 million (1,967); adjusted for currency, sales increased by 3%. Automotive volumes increased, while supply chain disruptions had less of an impact than previously. The charging on of cost increases has gradually contributed less to the increase in sales. Demand for products supplied in the consumer discretionary sector was slightly lower, and this is expected to continue in the fourth quarter due to weaker economic conditions and more restrained consumer spending.
Operating profit (EBITA) increased to SEK 166 million (110).
The EBITA margin for Industrial Solutions increased to 7.7% (5.6). Less disruption in the supply chain for automotive has meant more efficient production, which has primarily had a positive impact on the margin.
Industrial Solutions sales
• Industrial Solutions operating profit (EBITA) & EBITA margin %
Cash flow •
Cash flow after investments, excluding acquisitions, was SEK 188 million (166) in the third quarter. The improvement in cash flow was primarily due to a more favorable change in working capital via reduced inventory and trade receivables.
Net investments affecting cash flow, excluding acquisitions, decreased to SEK 92 million (109).
Accumulated after nine months, cash flow after investments, excluding acquisitions, was SEK 366 million (143). Including acquisitions, cash flow amounted to SEK 257 million (143). The improvement in cash flow is primarily due to a more favorable change in working capital. On an accumulated basis, net investments affecting cash flow, excluding acquisitions, declined to SEK 319 million (352). Cash conversion for the last 12 months was 25% (1% for the 2022 calendar year). A dividend totaling SEK 512 million (512) was paid to shareholders in the second quarter. Other items in financing activities include amortization of loans of SEK 37 million.
Cash flow after investments
Financial position • Net financial liabilities & equity/assets ratio
Interest-bearing assets decreased to SEK 720 million (1,193), and interestbearing financial liabilities declined to SEK 1,723 million (1,773). Net financial liabilities consequently totaled SEK 1,003 million (580). Payment of dividends and an increase in working capital requirements have been the main contributors to increased net debt. There are also interest-bearing pension liabilities of SEK 172 million (170) and interest-bearing lease liabilities of SEK 305 million (317). Shareholders' equity decreased to SEK 5,382 million (5,398). The equity/assets ratio was 54% (51).
Financial position
| SEK million | 30/09/2023 | 30/09/2022 | 31/12/2022 |
|---|---|---|---|
| Interest-bearing liabilities, credit institutions | – 1,723 | – 1,773 | – 1,719 |
| Cash and bank | 720 | 1,193 | 1,011 |
| Net financial liabilities (–) | – 1,003 | – 580 | – 708 |
| Interest-bearing pension liabilities | – 172 | – 170 | – 173 |
| Net financial liabilities (–), incl. pension liabilities | – 1,175 | – 750 | – 881 |
| Lease liabilities | – 305 | – 317 | – 314 |
| Net financial liabilities (–), including pension- & lease liabilities | – 1,480 | – 1,067 | – 1,195 |
| Working capital | 1,359 | 899 | 1,108 |
| As a percentage of sales (average) (%) | 11.7 | 4.9 | 7.4 |
| Capital employed | 7,581 | 7,659 | 7,597 |
| Return on capital employed (average) (%) | 9.4 | 16.7 | 12.8 |
| Shareholders' equity | 5,382 | 5,398 | 5,392 |
| Return on shareholders' equity (average) (%) | 9.4 | 19.2 | 13.6 |
Personnel • Contact:
The average number of employees during the period was 5,727 people (7,004). The decrease in the number of employees is mainly attributable to Integrated Solutions' operations in China.
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 71–73 and in Note 30 on pages 101–104 of the 2022 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.
Events after the balance sheet date
No significant events have occurred since the end of the period, but high inflation and the geopolitical impact from the invasion of Ukraine are, of course, also affecting Nolato's business and its customers. It is not currently possible to foresee the extent of this or how long it is likely to continue, nor is it possible to quantify its effects on the Group.
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 16,800 shareholders at 30 September. The largest shareholders are the Jorlén family, the Boström family, the Hamrin family and Första AP-fonden with 9% each, the Nordea Funds and Lannebo Funds with 6% each, and Andra AP-fonden with 4% of capital.
The Parent Company
For the parent company, which has no operating activities, sales amounted to SEK 58 million (53). Profit after financial income and expense amounted to SEK −30 million (44) and was mainly affected by lower profit from participations in Group companies.
Contingent liabilities amounted to SEK 275 million (322).
- Christer Wahlquist, President and CEO, tel. +46705 804848
- Per-Ola Holmström, CFO, tel. +46705 763340
• Webcast conference call on 26 October:
In connection with the interim report, Nolato will hold a webcast conference call in English at 2.45 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://www.finwire.tv/webcast/nolato/q 3-2023/
The presentation will be available at:
after publication of the interim report. The webcast will be available at the same address after the live broadcast.
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 2:00 p.m. CET on 26 October 2023.
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 2022.
IASB and the IFRS Interpretations Committee have issued new standards and statements that apply to financial years starting January 1, 2023, or later. There are no plans for early adoption 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.
Nomination Committee
In accordance with a decision at Nolato's AGM on May 3, 2023, the largest shareholders in terms of the number of votes at the end of September 2023 have appointed the following individuals as members of Nolato's Nomination Committee ahead of the 2024 AGM: Henrik Jorlén, chairman (Jorlén family), Gun Boström (Boström family), Lovisa Hamrin (Hamrin family), Anna Magnusson (First AP Fund AP1) and Katarina Hammar (Nordea Funds).
Shareholders who would like to submit proposals to the Nomination Committee can contact the chairman of the Nomination Committee, Henrik Jorlén, by email at [email protected] or by mail at Kommendörsgatan 4, 269 77 Torekov, Sweden.
Annual General Meeting
The Annual General Meeting will be held on May 6, 2024.
Financial information schedule
- 2023 year-end report: February 6, 2024
- Three-month interim report 2024: May 6, 2024
- 2024 Annual General Meeting: May 6, 2024
- Six-month interim report 2024: July 18, 2024
- Nine-month interim report 2024: October 24, 2024
- 2024 year-end report: February 6, 2025
Torekov, 26 October 2023 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) |
|---|
| ----------------------------------------- |
| Q3 | Q3 | Q1 - Q3 | Q1 - Q3 | Rolling | Full year | ||
|---|---|---|---|---|---|---|---|
| SEK million | Note | 2023 | 2022 | 2023 | 2022 12 months | 2022 | |
| Net sales | 1 | 2,340 | 2,626 | 7,294 | 8,410 | 9,658 | 10,774 |
| Cost of goods sold | – 2,054 | – 2,285 | – 6,300 | – 7,290 | – 8,356 | – 9,346 | |
| Gross profit | 286 | 341 | 994 | 1,120 | 1,302 | 1,428 | |
| Selling expenses | – 58 | – 53 | – 171 | – 157 | – 227 | – 213 | |
| Administrative expenses | – 108 | – 98 | – 341 | – 289 | – 441 | – 389 | |
| Other operating income and operating expenses, net | 3 | 15 | 10 | 41 | 10 | 41 | |
| – 163 | – 136 | – 502 | – 405 | – 658 | – 561 | ||
| Operating profit | 2 | 123 | 205 | 492 | 715 | 644 | 867 |
| Financial income and expense | 2 | – 21 | – 8 | – 25 | – 26 | 9 | 8 |
| Profit after financial income and expense | 2 | 102 | 197 | 467 | 689 | 653 | 875 |
| Tax | – 33 | – 37 | – 107 | – 138 | – 147 | – 178 | |
| Profit after tax | 69 | 160 | 360 | 551 | 506 | 697 | |
| All earnings are attrib. to the Parent Co.'s shareh. | |||||||
| Depreciation/amortization reg. non-current assets | 153 | 138 | 443 | 400 | 587 | 544 | |
| Basic earnings per share, SEK | 3 | 0.26 | 0.59 | 1.34 | 2.05 | 1.88 | 2.59 |
| Diluted earnings per share, SEK | 3 | 0.26 | 0.59 | 1.34 | 2.05 | 1.88 | 2.59 |
| Number of shares at the end of the period, bef. dil. | 269,377,080 | 269,377,080 | 269,377,080 | 269,377,080 | 269,377,080 | 269,377,080 | |
| Number of shares at the end of the period, after dil. | 269,377,080 | 269,377,080 | 269,377,080 | 269,377,080 | 269,377,080 | 269,377,080 | |
| Average number of shares, before dilution | 269,377,080 | 269,377,080 | 269,377,080 | 269,377,080 | 269,377,080 | 269,377,080 | |
| Average number of shares, after dilution | 269,377,080 | 269,377,080 | 269,377,080 | 269,377,080 | 269,377,080 | 269,377,080 |
At the end of the period, the Group had two incentive programmes: Incentive Programme 2019/2024 and Incentive Programme 2022/2028. For more information please see Note 3 Earnings per share on page 16.
Consolidated comprehensive income
| Q3 | Q3 | Q1 - Q3 | Q1 - Q3 | Rolling | Full year | |
|---|---|---|---|---|---|---|
| SEK million | 2023 | 2022 | 2023 | 2022 12 months | 2022 | |
| Profit after tax | 69 | 160 | 360 | 551 | 506 | 697 |
| Other comprehensive income | ||||||
| Items that cannot be transferred to profit for the period | ||||||
| Revaluations of defined benefit pension plans | — | 9 | 5 | 96 | 11 | 102 |
| Tax attrib. to items that cannot be transf. to profit for the per. | — | – 1 | – 1 | – 15 | – 3 | – 17 |
| — | 8 | 4 | 81 | 8 | 85 | |
| Items that have been conv. or can be conv. into prof. for the per. | ||||||
| Transl. diff. for the period on transl. of foreign operations | – 38 | 229 | 140 | 516 | – 32 | 344 |
| Changes in the fair value of cash flow hedges for the period | 2 | 2 | – 3 | – 9 | 9 | 3 |
| Tax attrib. to changes in the fair value of cash flow hedges | — | 1 | 1 | 3 | – 3 | – 1 |
| – 36 | 232 | 138 | 510 | – 26 | 346 | |
| Other comprehensive income, net of tax | – 36 | 240 | 142 | 591 | – 18 | 431 |
| Total comp. inc. for the per. attrib. to the Parent Co.'s shareh. | 33 | 400 | 502 | 1,142 | 488 | 1,128 |
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 | 30/09/2023 | 30/09/2022 | 31/12/2022 |
|---|---|---|---|
| Assets | |||
| Non-current assets | |||
| Non-current intangible assets | 2,544 | 2,598 | 2,472 |
| Property, plant and equipment | 2,927 | 2,926 | 2,869 |
| Rights of use | 295 | 309 | 305 |
| Non-current financial assets | 2 | 2 | 2 |
| Other non-current receivables | 1 | 1 | 1 |
| Deferred tax assets | 126 | 76 | 87 |
| Total non-current assets | 5,895 | 5,912 | 5,736 |
| Current assets | |||
| Inventories | 1,238 | 1,266 | 1,283 |
| Accounts receivable | 1,595 | 1,658 | 1,522 |
| Other current assets2) | 476 | 606 | 455 |
| Cash and bank | 720 | 1,193 | 1,011 |
| Total current assets | 4,029 | 4,723 | 4,271 |
| Total assets | 9,924 | 10,635 | 10,007 |
| Shareholders' equity and liabilities | |||
| Shareholders' equity | 5,382 | 5,398 | 5,392 |
| Long-term liabilities and provisions1) | 1,980 | 2,173 | 1,945 |
| Deferred tax liabilities1) | 325 | 264 | 294 |
| Current liabilities and provisions1) 3) | 2,237 | 2,800 | 2,376 |
| Total liabilities and provisions | 4,542 | 5,237 | 4,615 |
| Total shareholders' equity and liabilities | 9,924 | 10,635 | 10,007 |
| 1) Interest-bearing/non-interest-bearing liabilities and provisions: | |||
| Interest-bearing liabilities and provisions | 2,200 | 2,260 | 2,206 |
| Non-interest-bearing liabilities and provisions | 2,342 | 2,977 | 2,409 |
| Total liabilities and provisions | 4,542 | 5,237 | 4,615 |
| 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 29 83 10
10 1 4
Changes in consolidated shareholders' equity (summary)
| Q1 - Q3 | Q1 - Q3 | Full year | |
|---|---|---|---|
| SEK million | 2023 | 2022 | 2022 |
| Shareholders' equity at the beginning of the period | 5,392 | 4,768 | 4,768 |
| Total comprehensive income for the period | 502 | 1,142 | 1,128 |
| Dividends | – 512 | – 512 | – 512 |
| Share warrants included in incentive programmes | — | — | 8 |
| Shareholders' equity at the end of period attrib. to Parent Co's shareh. | 5,382 | 5,398 | 5,392 |
At the end of the period, the Group had two incentive programmes: Incentive Programme 2019/2024 and Incentive Programme 2022/2028. In Incentive Programme 2019/2024, Series 2020/2023 has redemptions from 01/05/2023 to 15/12/2023 and Series 2021/2024 has redemptions from 01/05/2024 to 15/12/2024. The subscription price is SEK 92.88 for Series 2020/2023 and SEK 140.20 for Series 2021/2024. In Incentive Programme 2022/2028, Series 2022/2026 has redemptions from 15/12/2025 to 15/06/2026, Series 2023/2027 has redemptions from 15/12/2026 to 15/06/2027 and Series 2024/2028 has redemptions from 15/12/2027 to 15/06/2028. The subscription price is SEK 57.80 for Series 2022/2026. The programmes have been taken into account in calculating the number of shares after dilution. Upon full subscription, the programmes provide a maximum of 7,549,500 new class B shares.
Consolidated cash flow statement (summary)
| Q3 | Q3 | Q1 - Q3 | Q1 - Q3 | Rolling | Full year | |
|---|---|---|---|---|---|---|
| SEK million | 2023 | 2022 | 2023 | 2022 12 months | 2022 | |
| Cash fl. from oper. activities bef. changes in work. cap. | 220 | 280 | 755 | 833 | 943 | 1,021 |
| Changes in working capital | 60 | – 5 | – 160 | – 338 | – 437 | – 615 |
| Cash flow from operating activities | 280 | 275 | 595 | 495 | 506 | 406 |
| Cash flow from investment activities | – 99 | – 109 | – 338 | – 352 | – 437 | – 451 |
| Cash flow before financing activities | 181 | 166 | 257 | 143 | 69 | – 45 |
| Cash flow from financing activities | – 265 | – 131 | – 549 | – 539 | – 497 | – 487 |
| Cash flow for the period | – 84 | 35 | – 292 | – 396 | – 428 | – 532 |
| Cash and cash equiv. at the beginning of the period | 815 | 1,115 | 1,011 | 1,448 | — | 1,448 |
| Exchange rate difference in liquid assets | – 11 | 43 | 1 | 141 | — | 95 |
| Cash and cash equivalents at the end of the period | 720 | 1,193 | 720 | 1,193 | — | 1,011 |
Note 1 Revenue
| Q1 - Q3 - 2023 Q1 - Q3 - 2022 |
Full year - 2022 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Med. | Integr. | Indust. | Med. | Integr. | Indust. | Med. | Integr. | Indust. | ||||
| SEK million | Sum | Sol. | Sol. | Sol. | Sum | Sol. | Sol. | Sol. | Sum | Sol. | Sol. | Sol. |
| Sweden | 766 | 113 | 26 | 627 | 711 | 103 | 26 | 582 | 963 | 138 | 35 | 790 |
| Other Europe | 3,540 | 1,971 | 447 | 1,122 | 4,558 | 1,688 | 1,808 | 1,062 | 5,657 | 2,317 | 1,953 | 1,387 |
| North America | 2,144 | 1,671 | 137 | 336 | 1,918 | 1,517 | 139 | 262 | 2,622 | 2,085 | 178 | 359 |
| Asia | 713 | 131 | 522 | 60 | 1,103 | 127 | 924 | 52 | 1,371 | 166 | 1,137 | 68 |
| Rest of world | 136 | 122 | 4 | 10 | 128 | 112 | 7 | 9 | 175 | 153 | 8 | 14 |
| Elimination internal sales | – 5 | – 8 | – 14 | |||||||||
| Tot. revenues fr. customer contracts | 7,294 | 4,008 | 1,136 | 2,155 | 8,410 | 3,547 | 2,904 | 1,967 | 10,774 | 4,859 | 3,311 | 2,618 |
The above table essentially covers products transferred at a specific date.
For the first nine months of the year, the Group recognised decreased provision of impaired trade receivables of SEK 4 million. Impairment losses are recognised in the cost of goods sold.
Note 2 Reconciliation of consolidated income before tax
| Q1 - Q3 | Q1 - Q3 | Rolling | Full year | |
|---|---|---|---|---|
| SEK million | 2023 | 2022 12 months | 2022 | |
| Operating profit (EBIT) | ||||
| Medical Solutions | 372 | 309 | 490 | 427 |
| Integrated Solutions | 47 | 308 | 72 | 333 |
| Industrial Solutions | 159 | 103 | 174 | 118 |
| Group adjustments, Parent Company | – 86 | – 5 | – 92 | – 11 |
| Consolidated operating profit (EBIT) | 492 | 715 | 644 | 867 |
| Financial income and expense (not distributed by business areas) | – 25 | – 26 | 9 | 8 |
| Consolidated profit before tax | 467 | 689 | 653 | 875 |
Including a non-recurring item of SEK −60 million in operaƟng profit in Q3 2023. The non-recurring items have been recognised at Group level and has therefore not affected the earnings of the business areas.
Including a non-recurring item of SEK 41 million in financial income and expense in rolling 12 months and full year 2022. The non-recurring items have been recognised at Group level and has therefore not affected the earnings of the business areas.
Note 3 Earnings per share (IFRS measures/alternative performance measures)
| Q3 | Q3 | Q1 - Q3 | Q1 - Q3 | Rolling | Full year | |
|---|---|---|---|---|---|---|
| SEK million | 2023 | 2022 | 2023 | 2022 12 months | 2022 | |
| Profit after tax | 69 | 160 | 360 | 551 | 506 | 697 |
| Average number of shares, before dilution | 269,377,080 | 269,377,080 | 269,377,080 | 269,377,080 | 269,377,080 | 269,377,080 |
| Basic earnings per share (SEK) | 0.26 | 0.59 | 1.34 | 2.05 | 1.88 | 2.59 |
| Non-recurring items | 60 | — | 60 | — | 19 | – 41 |
| Profit after tax excl. non-recurring items | 129 | 160 | 420 | 551 | 525 | 656 |
| Basic earnings per share excl. non-recurring items (SEK) | 0.48 | 0.59 | 1.56 | 2.05 | 1.95 | 2.44 |
| Average number of shares, after dilution | 269,377,080 | 269,377,080 | 269,377,080 | 269,377,080 | 269,377,080 | 269,377,080 |
| Diluted earnings per share (SEK) | 0.26 | 0.59 | 1.34 | 2.05 | 1.88 | 2.59 |
| Diluted earnings per share excl. non-rec. items (SEK) | 0.48 | 0.59 | 1.56 | 2.05 | 1.95 | 2.44 |
| Numb. of shares at the end of the per., before dilution | 269,377,080 | 269,377,080 | 269,377,080 | 269,377,080 | 269,377,080 | 269,377,080 |
| Numb. of shares at the end of the period, after dilution | 269,377,080 | 269,377,080 | 269,377,080 | 269,377,080 | 269,377,080 | 269,377,080 |
At the end of the period, the Group had two incentive programmes: Incentive Programme 2019/2024 and Incentive Programme 2022/2028. In Incentive Programme 2019/2024, Series 2020/2023 has redemptions from 01/05/2023 to 15/12/2023 and Series 2021/2024 has redemptions from 01/05/2024 to 15/12/2024. The subscription price is SEK 92.88 for Series 2020/2023 and SEK 140.20 for Series 2021/2024. In Incentive Programme 2022/2028, Series 2022/2026 has redemptions from 15/12/2025 to 15/06/2026, Series 2023/2027 has redemptions from 15/12/2026 to 15/06/2027 and Series 2024/2028 has redemptions from 15/12/2027 to 15/06/2028. The subscription price is SEK 57.80 for Series 2022/2026. The programmes have been taken into account in calculating the number of shares after dilution. Upon full subscription, the programmes provide a maximum of 7,549,500 new class B shares.
Adjusted earnings per share (alternative performance measures)
| Q3 | Q3 | Q1 - Q3 | Q1 - Q3 | Rolling | Full year | |
|---|---|---|---|---|---|---|
| SEK million | 2023 | 2022 | 2023 | 2022 12 months | 2022 | |
| Profit after tax | 69 | 160 | 360 | 551 | 506 | 697 |
| Adjusted earnings: | ||||||
| Amort. of intangible assets arising from acquisitions | 10 | 9 | 32 | 30 | 43 | 41 |
| Tax on amortization | – 2 | – 2 | – 7 | – 6 | – 10 | – 9 |
| Adjusted earnings | 77 | 167 | 385 | 575 | 539 | 729 |
| Average number of shares, before dilution | 269,377,080 | 269,377,080 | 269,377,080 | 269,377,080 | 269,377,080 | 269,377,080 |
| Adjusted basic earnings per share (SEK) | 0.29 | 0.62 | 1.43 | 2.13 | 2.00 | 2.70 |
| Non-recurring items | 60 | — | 60 | — | 19 | – 41 |
| Adjusted earnings after tax, excl. non-recurring items | 137 | 167 | 445 | 575 | 558 | 688 |
| Adj. basic earnings per share excl. non-rec. items (SEK) | 0.51 | 0.62 | 1.65 | 2.13 | 2.07 | 2.55 |
| Average number of shares, after dilution | 269,377,080 | 269,377,080 | 269,377,080 | 269,377,080 | 269,377,080 | 269,377,080 |
| Adjusted diluted earnings per share (SEK) | 0.29 | 0.62 | 1.43 | 2.13 | 2.00 | 2.70 |
| Adj. diluted earn. per share excl. non-rec. items (SEK) | 0.51 | 0.62 | 1.65 | 2.13 | 2.07 | 2.55 |
Five-year overview
| IFRS measures | 2022 | 2021 | 2020 | 2019 | 2018 |
|---|---|---|---|---|---|
| Operating profit (EBIT) (SEK million) | 867 | 1,333 | 1,048 | 887 | 941 |
| Basic earnings per share (SEK) | 2.59 | 4.32 | 3.03 | 2.66 | 2.74 |
| Diluted earnings per share (SEK) | 2.59 | 4.32 | 3.02 | 2.66 | 2.74 |
| Alternative performance measures | |||||
|---|---|---|---|---|---|
| Net sales (SEK million) | 10,774 | 11,610 | 9,359 | 7,919 | 8,102 |
| Operating profit (EBITA) (SEK million) | 908 | 1,369 | 1,066 | 895 | 949 |
| EBITA margin (%) | 8.4 | 11.8 | 11.4 | 11.3 | 11.7 |
| Profit after financial income and expense (SEK million) | 875 | 1,401 | 1,014 | 857 | 921 |
| Profit after tax (SEK million) | 697 | 1,160 | 806 | 703 | 722 |
| Cash flow after investments, excl. acq. and disposals (SEK million) | 8 | 446 | 905 | 800 | 593 |
| Cash conversion (%) | 1 | 35 | 87 | 88 | 60 |
| Return on capital employed (%) | 12.8 | 22.8 | 20.7 | 23.1 | 29.7 |
| Return on shareholders' equity (%) | 13.6 | 28.0 | 23.9 | 25.5 | 30.4 |
| Net financial liabilities (–) / assets (+), excl. pension- & lease liabilities (SEK million) |
– 708 | – 51 | – 298 | 666 | 341 |
| Equity/assets ratio (%) | 54 | 47 | 43 | 48 | 50 |
| Adjusted basic earnings per share (SEK) | 2.70 | 4.43 | 3.08 | 2.68 | 2.77 |
| Adjusted diluted earnings per share (SEK) | 2.70 | 4.42 | 3.08 | 2.68 | 2.76 |
| Dividend per share (SEK) | 1.90 | 1.90 | 1.60 | — | 1.40 |
| Average number of employees | 6,627 | 8,669 | 6,721 | 5,941 | 6,449 |
Including any non-recurring items.
IFRS measures Note Operating profit (EBIT) (SEK million) 2 2 Basic earnings per share (SEK) 3 3 Diluted earnings per share (SEK) 3 3 Alternative performance measures Note Net sales (SEK million) 1 1 Operating profit (EBITDA) (SEK million) Operating profit (EBITA) (SEK million) EBITA margin (%) Profit after financial income and exp. (SEK million) 2 2 Profit after tax (SEK million) Cash flow from operating activities (SEK million) Cash fl. from operations per share bef. dilution (SEK) Cash flow after investments, excluding acquisitions and disposals (SEK million) Cash flow after investments, excl. acquisitions and disposals per share before dilution (SEK) Adjusted basic earnings per share (SEK) 3 3 Shareholders' equity per share, before dilution (SEK) Return on total capital (%) 2022 14.8 13.3 11.6 9.1 9.1 2023 8.4 7.9 7.0 — — 2021 15 15 16 18 18 2022 19 19 20 20 20 2023 21 20 20 — — 2021 0.87 1.11 0.98 1.46 4.43 2022 0.77 0.74 0.62 0.57 2.70 2023 0.53 0.61 0.29 — — 2021 0.27 1.29 0.43 – 0.32 1.66 2022 – 0.15 0.26 0.62 – 0.70 0.03 2023 – 0.17 0.83 0.70 — — 2021 71 346 116 – 87 446 2022 – 41 71 166 – 188 8 2023 – 46 224 188 — — 2021 0.93 1.86 1.34 0.44 4.58 2022 0.33 0.49 1.02 – 0.33 1.51 2023 0.28 0.89 1.04 — — 2021 249 500 361 118 1,228 2022 89 131 275 – 89 406 2023 75 240 280 — — 2021 226 291 257 386 1,160 2022 201 190 160 146 697 2023 136 155 69 — — 2021 286 360 322 433 1,401 2022 251 241 197 186 875 2023 173 192 102 — — 2021 11.6 13.9 11.2 10.7 11.8 2022 9.3 9.1 8.1 6.9 8.4 2023 7.8 8.0 5.7 — — 2021 308 386 339 336 1,369 2022 267 264 214 163 908 2023 193 198 133 — — 2021 414 492 450 449 1,805 2022 386 386 343 296 1,411 2023 326 333 276 — — Full year 4.32 2021 2,645 2,786 3,033 3,146 11,610 2022 0.75 0.71 0.59 0.54 2.59 2022 2,879 2,905 2,626 2,364 10,774 2023 2,476 2,478 2,340 — — Q1 Q2 Q3 Q4 2023 0.50 0.58 0.26 — — 4.32 2021 0.84 1.08 0.95 1.43 2021 0.85 1.09 0.96 1.43 2022 0.75 0.71 0.59 0.54 2.59 2023 0.50 0.58 0.26 — — 2021 299 377 331 326 1,333 2022 258 252 205 152 867 2023 183 186 123 — — Q1 Q2 Q3 Q4 Full year
Quarterly data (summary)
2021 14.0 14.6 14.3 15.7 15.7
| Alternative performance measures | Q1 | Q2 | Q3 | Q4 Full year | ||
|---|---|---|---|---|---|---|
| Return on capital employed (%) | 2023 | 11.5 | 10.7 | 9.4 | — | — |
| 2022 | 21.6 | 19.4 | 16.7 | 12.8 | 12.8 | |
| 2021 | 20.2 | 21.0 | 20.6 | 22.8 | 22.8 | |
| Return on operating capital (%) | 2023 | 12.5 | 11.0 | 9.5 | — | — |
| 2022 | 25.3 | 21.8 | 18.3 | 14.4 | 14.4 | |
| 2021 | 28.0 | 28.5 | 26.8 | 27.1 | 27.1 | |
| Return on shareholders' equity (%) | 2023 | 12.0 | 11.2 | 9.4 | — | — |
| 2022 | 25.8 | 22.5 | 19.2 | 13.6 | 13.6 | |
| 2021 | 23.8 | 25.1 | 25.1 | 28.0 | 28.0 | |
| Closing share price Nolato B (Nasdaq Stockholm) | 2023 | 52.55 | 50.70 | 44.82 | — | — |
| 2022 | 70.00 | 55.00 | 50.85 | 54.65 | 54.65 | |
| 2021 | 77.80 | 84.20 | 104.70 | 107.90 | 107.90 |
Including a non-recurring item of SEK −60 million in operaƟng profit and profit aŌer tax in Q3 2023.
Including a non-recurring item of SEK 41 million in profit after financial income and expense and profit after tax in Q4 2022.
Including a non-recurring item of SEK 50 million in operating profit and profit after tax in Q2 2021 and SEK 115 million in profit after financial income and expense and profit after tax in Q4 2021.
Quarterly data business areas
| Alternative performance measures | |||||||
|---|---|---|---|---|---|---|---|
| Net sales (SEK million) | Note | Q1 | Q2 | Q3 | Q4 Full year | ||
| Medical Solutions | 1 | 2023 | 1,324 | 1,364 | 1,320 | — | — |
| 1 | 2022 | 4,859 | |||||
| 2021 | 4,067 | ||||||
| Integrated Solutions | 1,088 1,214 1,245 1,312 1,006 1,021 977 1,063 414 392 330 — 2023 1 1,140 1,019 745 407 2022 1 1,045 1,186 1,519 1,476 2021 740 724 691 — 2023 1 653 676 638 651 2022 1 595 580 540 609 2021 – 2 – 2 – 1 — 2023 1 |
— | |||||
| 3,311 | |||||||
| 5,226 | |||||||
| Industrial Solutions | — | ||||||
| 2,618 | |||||||
| 2,324 | |||||||
| Group adjustments, Parent Company | — | ||||||
| 1 | 2022 | – 2 | – 4 | – 2 | – 6 | – 14 | |
| 2021 | – 1 | – 1 | – 3 | – 2 | – 7 | ||
| Group total | 1 | 2023 | 2,476 | 2,478 | 2,340 | — | — |
| 1 | 2022 | 2,879 | 2,905 | 2,626 | 2,364 | 10,774 | |
| 2021 | 2,645 | 2,786 | 3,033 | 3,146 | 11,610 |
| Alternative performance measures | |||||||
|---|---|---|---|---|---|---|---|
| Operating profit (EBITA) (SEK million) | Q1 | Q2 | Q3 | Q4 | Full year | ||
| Medical Solutions | 2023 | 132 | 138 | 126 | — | — | |
| EBITA margin (%) | 10.0 | 10.1 | 9.5 | — | — | ||
| 2022 | 106 | 121 | 104 | 126 | 457 | ||
| EBITA margin (%) | 9.7 | 10.0 | 8.4 | 9.6 | 9.4 | ||
| 2021 | 121 | 124 | 100 | 112 | 457 | ||
| EBITA margin (%) | 12.0 | 12.1 | 10.2 | 10.5 | 11.2 | ||
| Integrated Solutions | 2023 | 22 | 16 | 10 | — | — | |
| EBITA margin (%) | 5.3 | 4.1 | 3.0 | — | — | ||
| 2022 | 123 | 109 | 77 | 25 | 334 | ||
| EBITA margin (%) | 10.8 | 10.7 | 10.3 | 6.1 | 10.1 | ||
| 2021 | 125 | 154 | 200 | 192 | 671 | ||
| EBITA margin (%) | 12.0 | 13.0 | 13.2 | 13.0 | 12.8 | ||
| Industrial Solutions | 2023 | 46 | 56 | 64 | — | — | |
| EBITA margin (%) | 6.2 | 7.7 | 9.3 | — | — | ||
| 2022 | 40 | 37 | 33 | 18 | 128 | ||
| EBITA margin (%) | 6.1 | 5.5 | 5.2 | 2.8 | 4.9 | ||
| 2021 | 66 | 62 | 42 | 38 | 208 | ||
| EBITA margin (%) | 11.1 | 10.7 | 7.8 | 6.2 | 9.0 | ||
| Group adjustments, Parent Company | 2023 | – 7 | – 12 | – 67 | — | — | |
| 2022 | – 2 | – 3 | — | – 6 | – 11 | ||
| 2021 | – 4 | 46 | – 3 | – 6 | 33 | ||
| Group total | 2023 | 193 | 198 | 133 | — | — | |
| EBITA margin (%) | 7.8 | 8.0 | 5.7 | — | — | ||
| 2022 | 267 | 264 | 214 | 163 | 908 | ||
| EBITA margin (%) | 9.3 | 9.1 | 8.1 | 6.9 | 8.4 | ||
| 2021 | 308 | 386 | 339 | 336 | 1,369 | ||
| EBITA margin (%) | 11.6 | 13.9 | 11.2 | 10.7 | 11.8 |
Including a non-recurring item of SEK −60 million in operaƟng profit in Q3 2023. 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 50 million in operating profit in Q2 2021. 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 | 2023 | 84 | 87 | 93 | — | — |
| 2022 | 69 | 74 | 79 | 86 | 308 | |
| 2021 | 61 | 61 | 63 | 64 | 249 | |
| Integrated Solutions | 2023 | 17 | 18 | 17 | — | — |
| 2022 | 15 | 17 | 16 | 14 | 62 | |
| 2021 | 15 | 16 | 15 | 16 | 62 | |
| Industrial Solutions | 2023 | 42 | 42 | 43 | — | — |
| 2022 | 43 | 43 | 43 | 44 | 173 | |
| 2021 | 39 | 38 | 41 | 42 | 160 | |
| Group adjustments, Parent Company | 2023 | — | — | — | — | — |
| 2022 | 1 | — | — | — | 1 | |
| 2021 | — | — | — | 1 | 1 | |
| Group total | 2023 | 143 | 147 | 153 | — | — |
| 2022 | 128 | 134 | 138 | 144 | 544 | |
| 2021 | 115 | 115 | 119 | 123 | 472 |
Group financial highlights
| IFRS measures | Note | Q3 2023 |
Q3 2022 |
Q1 - Q3 2023 |
Q1 - Q3 | Rolling 2022 12 months |
Full year 2022 |
|---|---|---|---|---|---|---|---|
| 0.59 | 1.34 | 2.05 | 1.88 | 2.59 | |||
| Basic earnings per share (SEK) | 3 | 0.26 | 0.59 | 1.34 | 2.05 | 1.88 | 2.59 |
| Diluted earnings per share (SEK) | 3 | 0.26 | |||||
| Alternative performance measures | |||||||
| Net sales (SEK million) | 1 | 2,340 | 2,626 | 7,294 | 8,410 | 9,658 | 10,774 |
| Sales growth (%) | – 11 | – 13 | – 13 | – 1 | – 16 | – 7 | |
| Percentage of sales outside Sweden (%) | 91 | 92 | 90 | 92 | 90 | 91 | |
| Operating profit (EBITDA) (SEK million) | 276 | 343 | 935 | 1,115 | 1,231 | 1,411 | |
| Operating profit (EBITA) (SEK million)1) | 133 | 214 | 524 | 745 | 687 | 908 | |
| EBITA margin (%)1) | 5.7 | 8.1 | 7.2 | 8.9 | 7.1 | 8.4 | |
| Profit after financial income and exp. (SEK million) | 2 | 102 | 197 | 467 | 689 | 653 | 875 |
| Profit margin (%)1) | 4.4 | 7.5 | 6.4 | 8.2 | 6.8 | 8.1 | |
| Profit after tax (SEK million) | 69 | 160 | 360 | 551 | 506 | 697 | |
| Return on total capital (%)1) | — | — | 7.0 | 11.6 | 7.0 | 9.1 | |
| Return on capital employed (%)1) | — | — | 9.4 | 16.7 | 9.4 | 12.8 | |
| Return on operating capital (%)1) | — | — | 9.5 | 18.3 | 9.5 | 14.4 | |
| Return on shareholders' equity (%)1) | — | — | 9.4 | 19.2 | 9.4 | 13.6 | |
| Equity/assets ratio (%) | — | — | 54 | 51 | 54 | 54 | |
| Debt/equity (%) | — | — | 41 | 42 | 41 | 41 | |
| Interest coverage ratio (times) | 7 | 13 | 10 | 17 | 11 | 17 | |
| Net investments affecting cash flow, excl. acquisitions and disposals (SEK million) |
92 | 109 | 319 | 352 | 418 | 451 | |
| Cash flow after investments, excl. acquisitions and disposals (SEK million) |
188 | 166 | 366 | 196 | 178 | 8 | |
| Cash conversion (%)1) | — | — | — | — | 25 | 1 | |
| Net financial liabilities, excl. pension- & lease liabilities (SEK million) |
— | — | – 1,003 | – 580 | – 1,003 | – 708 | |
| Adjusted earnings per share, basic and diluted, (SEK) | 3 | 0.29 | 0.62 | 1.43 | 2.13 | 2.00 | 2.70 |
| Cash flow from operations per share, before and after dilution, (SEK) |
1.04 | 1.02 | 2.21 | 1.84 | 1.88 | 1.51 | |
| Cash flow after investments excluding acquisitions and disposals, per share, before and after dilution, (SEK) |
0.70 | 0.62 | 1.36 | 0.73 | 0.26 | 0.03 | |
| Shareholders' equity per share, before and after dilution, (SEK) |
— | — | 20 | 20 | — | 20 | |
| Average number of employees | — | — | 5,727 | 7,004 | — | 6,627 |
See definitions of IFRS measures and alternative performance measures on page 22.
1) KPIs calculated as specified on pages 23 and 24.
Including a non-recurring item of SEK −60 million in operaƟng profit and profit aŌer tax in Q3 2023. Including a non-recurring item of SEK 41 million in profit after financial items in rolling 12 months and full year 2022, which also impacted the profit after tax.
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 amortization 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 bearing assets. 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
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 liabilities (–) / financial assets (+)
Interest-bearing liabilities from credit institutions less interest-
Operating profit (EBITA)
Earnings before financial income and expense, taxes and amortization of intangible assets arising from acquisitions.
Operating profit (EBITDA)
Earnings before financial income and expense, taxes and depreciation/amortization.
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 shareholders' equity. Profit after tax as a percentage of average shareholders' equity.
Operating profit (EBITA) as a percentage of net sales. 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
| Q3 | Q3 | Q1 - Q3 | Q1 - Q3 | Rolling | Full year | ||
|---|---|---|---|---|---|---|---|
| SEK million unless otherwise specified | Note | 2023 | 2022 | 2023 | 2022 12 months | 2022 | |
| Operating profit (EBITDA) | 276 | 343 | 935 | 1,115 | 1,231 | 1,411 | |
| Non-recurring items | 60 | — | 60 | — | 60 | — | |
| Adjusted operating profit (EBITDA) | 336 | 343 | 995 | 1,115 | 1,291 | 1,411 | |
| Operating profit (EBIT) | 2 | 123 | 205 | 492 | 715 | 644 | 867 |
| Reversal of amort. of intangible assets arising | |||||||
| in connection with acquisitions | 10 | 9 | 32 | 30 | 43 | 41 | |
| Operating profit (EBITA) | 133 | 214 | 524 | 745 | 687 | 908 | |
| Non-recurring items | 60 | — | 60 | — | 60 | — | |
| Adjusted operating profit (EBITA) | 193 | 214 | 584 | 745 | 747 | 908 | |
| EBITA margin (%) | 5.7 | 8.1 | 7.2 | 8.9 | 7.1 | 8.4 | |
| Adjusted EBITA margin (%) | 8.2 | 8.1 | 8.0 | 8.9 | 7.7 | 8.4 | |
| Profit after financial income and expense | 2 | 102 | 197 | 467 | 689 | 653 | 875 |
| Non-recurring items | 60 | — | 60 | — | 19 | – 41 | |
| Adjusted profit after financial income and expense | 162 | 197 | 527 | 689 | 672 | 834 | |
| Profit margin (%) | 4.4 | 7.5 | 6.4 | 8.2 | 6.8 | 8.1 | |
| Adjusted profit margin (%) | 6.9 | 7.5 | 7.2 | 8.2 | 7.0 | 7.7 | |
| Profit after tax | 69 | 160 | 360 | 551 | 506 | 697 | |
| Non-recurring items | 60 | — | 60 | — | 19 | – 41 | |
| Tax on non-recurring items | — | — | — | — | — | — | |
| Adjusted profit after tax | 129 | 160 | 420 | 551 | 525 | 656 | |
| Cash fl. after investm., excl. acquisitions and dispos. | — | — | — | — | 178 | 8 | |
| Operating profit (EBIT) | 2 | — | — | — | — | 644 | 867 |
| Non-recurring items | — | — | — | — | 60 | — | |
| Adjusted operating profit (EBIT) | — | — | — | — | 704 | 867 | |
| Cash conversion (%) | — | — | — | — | 25 | 1 |
Including a non-recurring item of SEK −60 million in operaƟng profit and profit aŌer tax in Q3 2023. Including a non-recurring item of SEK 41 million in profit after financial items in rolling 12 months and full year 2022, which also impacted the profit after tax. The non-recurring items have been recognised at Group level and have therefore not affected the earnings of the business areas.
| Alternative performance measures | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 |
|---|---|---|---|---|---|---|---|---|---|
| SEK million unless otherwise specified | 2023 | 2023 | 2023 | 2022 | 2022 | 2022 | 2022 | 2021 | 2021 |
| Profit after financial income and exp., rolling 12 months | 652 | 748 | 797 | 875 | 1,122 | ||||
| Financial expense, rolling 12 months | 66 | 64 | 59 | 56 | 51 | ||||
| Adj. profit after financial inc. and exp., rolling 12 months | 718 | 812 | 856 | 931 | 1,173 | ||||
| Total capital, at the end of period | 9,924 | 10,211 | 10,147 | 10,007 | 10,635 | 10,220 | 9,984 | 10,056 | 9,542 |
| Average total capital, last 5 quarters | 10,185 | 10,244 | 10,199 | 10,180 | 10,087 | ||||
| Return on total capital (%) | 7.0 | 7.9 | 8.4 | 9.1 | 11.6 | ||||
| Adj. profit after financial inc. and exp., rolling 12 months | 718 | 812 | 856 | 931 | 1,173 | ||||
| Capital employed, at the end of period | 7,581 | 7,826 | 7,726 | 7,597 | 7,659 | 7,220 | 7,074 | 6,809 | 6,318 |
| Average capital employed, last 5 quarters | 7,678 | 7,606 | 7,455 | 7,272 | 7,016 | ||||
| Return on capital employed (%) | 9.4 | 10.7 | 11.5 | 12.8 | 16.7 | ||||
| Operating profit (EBIT), rolling 12 months | 643 | 726 | 791 | 867 | 1,041 | ||||
| Capital employed, at the end of period | 7,581 | 7,826 | 7,726 | 7,597 | 7,659 | 7,220 | 7,074 | 6,809 | 6,318 |
| Cash and bank, at the end of period | – 720 | – 815 | – 932 – 1,011 – 1,193 – 1,115 – 1,408 – 1,448 | – 1,400 | |||||
| Operating capital, at the end of period | 6,861 | 7,011 | 6,794 | 6,586 | 6,466 | 6,105 | 5,666 | 5,361 | 4,918 |
| Average operating capital, latest 5 quarters | 6,744 | 6,592 | 6,323 | 6,037 | 5,703 | ||||
| Return on operating capital (%) | 9.5 | 11.0 | 12.5 | 14.4 | 18.3 | ||||
| Profit after tax, rolling 12 months | 506 | 597 | 632 | 697 | 937 | ||||
| Shareholders' equity, at the end of period | 5,382 | 5,349 | 5,534 | 5,392 | 5,398 | 4,998 | 5,010 | 4,768 | 4,280 |
| Average shareholders' equity, latest 5 quarters | 5,411 | 5,334 | 5,266 | 5,113 | 4,891 | ||||
| Return on shareholders' equity (%) | 9.4 | 11.2 | 12.0 | 13.6 | 19.2 |
Acquisitions
Acquisition of P&P Technology Ltd.
Description of the company
Nolato has acquired UK-based P&P Technology. The company, which has annual sales equivalent to approximately SEK 25 million with good profitability, provides component- and materials-based electronics shielding solutions for electromagnetic compatibility (EMC). The acquisition provides Nolato with complementary production technologies, an expanded customer base and a stronger presence in the UK.
P&P Technology, which was established in 2014, employs around 20 people at its facility northeast of London, and has a diversified customer base within the aviation, automotive and other industries.
Description of the acquisition
Nolato has acquired 100% of the shares in P&P Technology Ltd, and obtained controlling influence. The company was acquired on April 27 and subsequently consolidated into Nolato. The acquisition was reported using the acquisition method, with the total purchase price being allocated among the assets acquired and liabilities assumed based on their fair values. Fair value was determined using generally accepted principles and methods. The acquisition price for the company, which is debt-free, amounts to approximately SEK 18 million, including a contingent consideration estimated by Nolato at SEK 6 million. The contingent consideration is based on actual earnings for the 2023–2025 period. The purchase price comprises a cash payment. The acquisition contributed SEK 11 million to the Nolato Group's revenue during 2023 and has not had any significant impact on the Group's earnings per share. The acquisition analysis of the company is still preliminary and may be amended according to IFRS regulations, as the final purchase price and the value of the assets and liabilities assumed from the acquisition have not been finally established.
Acquisition value, goodwill and cash flow effects (preliminary)
| Acquisition value | |
|---|---|
| Acquisition value | 18 |
| Less fair value of acquired net assets (according to specification below) | – 9 |
| Goodwill | 9 |
Goodwill arising in connection with the transaction consists of synergies that are expected to be achieved primarily as a result of increased sales volumes for the Nolato Group to customers in the EMC business unit, which is part of Integrated Solutions. The goodwill is not tax-deductible according to UK tax rules.
Net assets
| Balance sheet at | Adjustment to | Fair | ||
|---|---|---|---|---|
| time of acquisition | fair value | value | ||
| Non-current intangible assets | 0 | 4 | 4 | |
| Property, plant and equipment | 3 | — | 3 | |
| Rights of use | 2 | — | 2 | |
| Current assets | 6 | — | 6 | |
| Cash and cash equivalents | 0 | — | 0 | |
| Other non-current financial liabilities | – 1 | — | – 1 | |
| Deferred tax liabilities | – 1 | – 1 | – 2 | |
| Other current financial liabilities | – 1 | — | – 1 | |
| Other current liabilities | – 2 | — | – 2 | |
| Net assets acquired | 6 | 3 | 9 |
Non-current intangible assets in the form of customer relaƟonships are esƟmat ed to amount to SEK 4 million and will be amor Ɵzed for accounting purposes over a period of 10 years. Gross value, fair value and the value expected to be settled for the balance sheet item 'Accounts receivable' are all SEK 3 million. Acquisition expenses of SEK 1 million were expensed as other operating expenses.
| Cash flow effects | ||
|---|---|---|
| -- | -- | ------------------- |
| Net cash flow from acquisition | 12 |
|---|---|
| Less acquired cash and cash equivalents | 0 |
| Cash paid, acquisition value | 12 |
Acquisition of Be-Må Tools AB
Nolato has acquired Be-Må Tools AB, a small company based in Sweden. The acquisition boosts our capacity in manufacturing and servicing molds for polymer production. A newly formed company has carried out an asset acquisition of Be-Må AB's net assets. The acquisition was completed on August 7 and consolidated as of the same date. The purchase price for the asset acquisition, excluding cash and cash equivalents, amounts to SEK 7 million. No goodwill or customer relationships have been assigned. Had the acquisition taken place on January 1, 2023, it would have contributed SEK 7 million to Group revenue; full-year sales are estimated at approximately SEK 10 million. The acquisition has no material impact on consolidated earnings per share, and acquisition costs are also not material. The acquisition analysis of the company is preliminary and may be subject to changes.
Parent Company income statement (summary)
| Q3 | Q3 | Q1 - Q3 | Q1 - Q3 | Rolling | Full year | |
|---|---|---|---|---|---|---|
| SEK million | 2023 | 2022 | 2023 | 2022 12 months | 2022 | |
| Net sales | 19 | 16 | 58 | 53 | 70 | 65 |
| Selling expenses | – 1 | – 1 | – 4 | – 5 | – 6 | – 7 |
| Administrative expenses | – 17 | – 14 | – 55 | – 44 | – 68 | – 57 |
| Other operating income | — | 1 | 4 | 3 | 6 | 5 |
| Other operating expenses | – 13 | – 16 | – 38 | – 48 | – 51 | – 61 |
| Operating profit | – 12 | – 14 | – 35 | – 41 | – 49 | – 55 |
| Profit from participations in Group companies | — | 26 | 33 | 141 | 174 | 282 |
| Financial income | 14 | 12 | 39 | 46 | 53 | 60 |
| Financial expenses | – 4 | – 43 | – 67 | – 102 | – 68 | – 103 |
| Profit after financial income and expense | – 2 | – 19 | – 30 | 44 | 110 | 184 |
| Appropriations | — | — | — | — | 266 | 266 |
| Tax | – 1 | 2 | 4 | 15 | – 53 | – 42 |
| Profit after tax | – 3 | – 17 | – 26 | 59 | 323 | 408 |
| Depreciation/amortization | — | — | — | — | — | — |
Parent Company balance sheet (summary)
| SEK million | 30/09/2023 | 30/09/2022 | 31/12/2022 |
|---|---|---|---|
| Assets | |||
| Property, plant and equipment | 1 | 1 | 1 |
| Financial assets | 4,213 | 4,096 | 4,061 |
| Deferred tax assets | 9 | 21 | — |
| Total fixed assets | 4,223 | 4,118 | 4,062 |
| Other receivables | 358 | 608 | 890 |
| Cash and bank | 17 | — | 6 |
| Total current assets | 375 | 608 | 896 |
| Total assets | 4,598 | 4,726 | 4,958 |
| Shareholders' equity and liabilities | |||
| Shareholders' equity | 2,467 | 2,654 | 3,004 |
| Untaxed reserves | 247 | 285 | 247 |
| Deferred tax liabilities | — | — | 1 |
| Other provisions | 7 | 7 | 4 |
| Long-term liabilities | 1,564 | 1,571 | 1,511 |
| Current liabilities | 313 | 209 | 191 |
| Total shareholders' equity and liabilities | 4,598 | 4,726 | 4,958 |
| 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 - Q3 2023 | 58 | – 21 | 39 | — | 33 | 1,109 | 250 |
| Subsidiary | Q1 - Q3 2022 | 53 | – 17 | 46 | — | 141 | 1,563 | 140 |
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 (publ), Nolatovägen 32, SE-269 78 Torekov, Sweden
• Tel. +46 431 442290 • Fax +46 431 442291
• Corp. id. number 556080-4592
• E-mail [email protected] • Website www.nolato.com