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Nolato B
Quarterly Report • Jul 20, 2023
2950_ir_2023-07-20_52367b4f-5291-4572-810f-458e67127bc3.pdf
Quarterly Report
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Second quarter of 2023 in brief
- Sales totaled SEK 2,478 million (2,905)
- Operating profit (EBITA) was SEK 198 million (264)
- EBITA margin of 8.0% (9.1)
- Profit after tax was SEK 155 million (190)
- Earnings per share, basic and diluted, were SEK 0.58 (0.71)
- Cash flow after investments rose to SEK 224 million (71) excl. acquisitions
First six months of 2023 in brief
- Sales totaled SEK 4,954 million (5,784)
- Operating profit (EBITA) was SEK 391 million (531)
- EBITA margin of 7.9% (9.2)
- Profit after tax was SEK 291 million (391)
- Earnings per share, basic and diluted, were SEK 1.08 (1.45)
- Cash flow after investments rose to SEK 178 million (30) excl. acquisitions
- Sustained strong financial position
Comments from the President and CEO Diversified customer portfolio and strong cash flow
Adjusted for currency, the Group's net sales decreased by 20% in the second quarter to SEK 2,478 million, which was in line with the first quarter of the year. The decline in sales was entirely attributable to continued low volumes in the Integrated Solutions business area. The EBITA margin increased slightly compared with the first quarter, amounting to 8.0%. Cash flow after investments, adjusted for acquisitions, grew considerably and totaled SEK 224 million during the quarter, owing to reduced inventory and trade receivables.
Christer Wahlquist, President and CEO, Nolato AB
In Medical Solutions, where we are continuing to strengthen our position as a global strategic partner with local production, sales grew by 6%, adjusted for currency. Most of our market areas have demonstrated healthy growth, apart from in vitro diagnostics (IVD) due to persistent inventory adjustments. The EBITA margin increased to 10.1% and this business area accounted for twothirds of Group earnings.
The decline in Integrated Solutions sales was attributable to the geopolitical situation and a change in the sourcing strategy of a previously significant customer, which has decreased in scope considerably. At the same time, the majority of our consumer electronics customers have seen a drop in endcustomer demand due to weakening economic conditions. Significantly lower volumes have had a negative impact on the EBITA margin, which consequently amounted to 4.1%. Our EMC operations are continuing to expand, chiefly in the automotive area, while telecoms is being affected by a lower rate of 5G expansion.
Industrial Solutions sales increased by 1%, adjusted for currency. Supply chain disruptions, particularly at our automotive customers, had less of an impact than previously. In addition, the economic slowdown has led to more restrained consumer spending, resulting in reduced demand for consumer discretionary goods and lower production volumes for us. The EBITA margin rose to 7.7%.
The Group now has a more diversified customer base than previously, and we are forging ahead with efforts to further broaden this base, cut our total costs and increase our efficiency with the aim of boosting profitability. Although our operating environment is more challenging, we are continually enhancing our competitiveness and are well equipped to harness business opportunities and generate profitable, sustainable growth over time.
| Q2 | Q2 | Q1 Q2 | Q1 Q2 | Rolling | Full year | ||
|---|---|---|---|---|---|---|---|
| SEK million unless otherwise specified | Note | 2023 | 2022 | 2023 | 2022 | 12 months | 2022 |
| Net sales | 1 | 2,478 | 2,905 | 4,954 | 5,784 | 9,944 | 10,774 |
| Operating profit (EBITDA) | 333 | 386 | 659 | 772 | 1,298 | 1,411 | |
| Operating profit (EBITA) | 198 | 264 | 391 | 531 | 768 | 908 | |
| EBITA margin, % | 8.0 | 9.1 | 7.9 | 9.2 | 7.7 | 8.4 | |
| Operating profit (EBIT) | 2 | 186 | 252 | 369 | 510 | 726 | 867 |
| Profit after financial income and expense | 2 | 192 | 241 | 365 | 492 | 748 | 875 |
| Profit after tax | 155 | 190 | 291 | 391 | 597 | 697 | |
| Earnings per share, basic and diluted, SEK | 3 | 0.58 | 0.71 | 1.08 | 1.45 | 2.22 | 2.59 |
| Adjusted earnings per share, basic and diluted, SEK | 3 | 0.61 | 0.74 | 1.14 | 1.51 | 2.34 | 2.70 |
| Cash flow after investm., excl. acquis. and disposals | 224 | 71 | 178 | 30 | 156 | 8 | |
| Net investments affecting cash flow, excl. acquisitions and disposals |
106 | 113 | 227 | 243 | 435 | 451 | |
| Cash conversion, % | — | — | — | — | 21 | 1 | |
| Return on capital employed, % | — | — | 10.7 | 19.4 | 10.7 | 12.8 | |
| Return on shareholders' equity, % | — | — | 11.2 | 22.5 | 11.2 | 13.6 | |
| Equity/assets ratio, % | — | — | 52 | 49 | 52 | 54 | |
| Net financial liabilities, excluding pension & lease liabilities |
— | — | – 1,163 | – 640 | – 1,163 | – 708 |
Group highlights
See definitions of IFRS measures and alternative performance measures on page 23.
Including a nonrecurring 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.
Second quarter 2023
- Sales totaled SEK 2,478 million (2,905), which, adjusted for currency, was a decrease of 20%
- Positive performance by Medical and Industrial Solutions, while lower volumes had a negative impact on Integrated Solutions
- Operating profit (EBITA) was SEK 198 million (264)
- EBITA margin of 8.0% (9.1)
- • Sales Cash flow after investments, excluding acquisitions and disposals, rose to SEK 224 million (71)
Sales
Consolidated sales totaled SEK 2,478 million (2,905). Adjusted for currency, this was a decrease of 20%. Net sales were positively affected by healthy growth for Medical Solutions and increased sales in Industrial Solutions, while a sharp decline in volumes in Integrated Solutions had an adverse impact.
Medical Solutions sales amounted to SEK 1,364 million (1,214); adjusted for currency, sales increased by 6%. Most market areas experienced good growth, apart from in vitro diagnostics (IVD), which remained at an unchanged level compared with the same period last year due to continued inventory adjustments in the value chain.
Integrated Solutions sales totaled SEK 392 million (1,019). Adjusted for currency, this was a decrease of 63%. 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 a fall in endcustomer demand at most other consumer electronics customers. Sales in the EMC business increased to SEK 174 million (170). 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 724 million (676); adjusted for currency, sales increased by 1%. 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 2023 due to a weaker economy.
Very strong cash flow during the quarter
• Operating profit (EBITA)
• EBITA margin
The Group's operating profit (EBITA) was SEK 198 million (264).
Operating profit (EBITA) was SEK 138 million (121) for Medical Solutions, SEK 16 million (109) for Integrated Solutions and SEK 56 million (37) for Industrial Solutions.
The EBITA margin for Medical Solutions was 10.1% (10.0). For Integrated Solutions, the margin was 4.1% (10.7). Significantly lower volumes had a negative impact on the margin. The EBITA margin for Industrial Solutions increased to 7.7% (5.5). Less disruption in the automotive supply chain has boosted production efficiency, which has primarily had a positive impact on the margin. Overall, the Group's EBITA margin was 8.0% (9.1).
Operating profit (EBIT) was SEK 186 million (252).
Profit after net financial income/expense was SEK 192 million (241). In net financial income/expense, a positive effect of SEK 10 million has been recognized from the revaluation of a contingent consideration relating to a previous acquisition in connection with final payment during the quarter.
Profit after tax was SEK 155 million (190). Earnings per share, basic and diluted, stood at SEK 0.58 (0.71). Adjusted earnings per share, basic and diluted, but excluding amortization of intangible assets arising from acquisitions, amounted to SEK 0.61 (0.74).
Profit • Earnings per share
| Sales, operating profit (EBITA) and EBITA margin by business area | ||
|---|---|---|
| Sales Sales EBITA EBITA EBITA marg. EBITA marg. Q2/2023 Q2/2022 Q2/2023 Q2/2022 Q2/2023 Q2/2022 SEK million 1,364 1,214 138 121 10.1% 10.0% Medical Solutions 392 1,019 16 109 4.1% 10.7% Integrated Solutions 724 676 56 37 7.7% 5.5% Industrial Solutions – 2 – 4 – 12 – 3 — — IntraGroup adj., Parent Co 2,478 2,905 198 264 8.0% 9.1% Group total |
||||
|---|---|---|---|---|
Operating profit (EBITA): Earnings before financial income and expense, taxes and amortization of intangible assets arising from acquisitions.
First six months 2023
Consolidated sales totaled SEK 4,954 million (5,784) for the first six months of 2023. Adjusted for currency, this was a decrease of 20%.
Sales for Medical Solutions rose by a strong 9% to SEK 2,688 million (2,302), while for Integrated Solutions they decreased by some 65% to SEK 806 million (2,159) and increased for Industrial Solutions by 4% to SEK 1,464 million (1,329), all percentages adjusted for currency.
The Group's operating profit (EBITA) was SEK 391 million (531). Overall, the Group's EBITA margin was 7.9% (9.2).
Operating profit (EBIT) was SEK 369 million (510).
Profit after net financial income/expense was SEK 365 million (492). Profit after tax was SEK 291 million (391). Diluted earnings per share were SEK 1.08 (1.45). Adjusted earnings per share after dilution, but excluding amortization of intangible assets arising from acquisitions, amounted to SEK 1.14 (1.51). The effective tax rate was 20.3% (20.5).
Return on capital employed was 10.7% for the last 12 months (12.8% for the 2022 calendar year). Return on equity was 11.2% for the last 12 months (13.6% for the 2022 calendar year).
(13)
Europe 50% (56)
Medical Solutions •
| Sales and profit 6 months (SEK million) | 2023 | 2022 |
|---|---|---|
| Sales | 2,688 | 2,302 |
| Operating profit (EBITA) | 270 | 227 |
| EBITA margin (%) | 10.0 | 9.9 |
| Operating profit (EBIT) | 254 | 212 |
Medical Solutions sales amounted to SEK 2,688 million (2,302); adjusted for currency, sales increased by a strong 9%. Most market areas experienced good growth, apart from in vitro diagnostics (IVD), which remained at an unchanged level compared with the same period last year due to continued inventory adjustments in the value chain. The charging on of price increases in materials only had a marginally positive effect.
Operating profit (EBITA) for Medical Solutions rose to SEK 270 million (227).
The EBITA margin for Medical Solutions was 10.0% (9.9).
Medical Solutions sales
• Medical Solutions operating profit (EBITA) & EBITA margin %
2023 2022 Integrated Solutions sales
• Integrated Solutions operating profit (EBITA) & EBITA margin %
Integrated Solutions
| Sales and profit 6 months (SEK million) | • | ||
|---|---|---|---|
| Sales | 806 | 2,159 | |
| Operating profit (EBITA) | 38 | 232 | |
| EBITA margin (%) | 4.7 | 10.7 | |
| Operating profit (EBIT) | 37 | 231 |
Integrated Solutions sales amounted to SEK 806 million (2,159); adjusted for currency, sales decreased by some 65%. 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 segment is continuing to perform well, with sales increasing to SEK 345 million (323). The automotive area of EMC is continuing to increase significantly, while the telecom area experienced lower volumes. Increased market share in automotive made a positive contribution to growth, while sluggish activity and inventory adjustments in 5G rollout had an adverse impact on telecom. Nolato acquired UKbased P&P Technology in April. The company, which has annual sales equivalent to approximately SEK 25 million with good profitability, provides component and materialsbased 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 38 million (232).
The EBITA margin for Integrated Solutions was 4.7% (10.7). Significantly lower volumes had a negative impact on the margin.
Industrial Solutions •
| Sales and profit 6 months (SEK million) | 2023 | 2022 |
|---|---|---|
| Sales | 1,464 | 1,329 |
| Operating profit (EBITA) | 102 | 77 |
| EBITA margin (%) | 7.0 | 5.8 |
| Operating profit (EBIT) | 97 | 72 |
Industrial Solutions sales amounted to SEK 1,464 million (1,329); adjusted for currency, sales increased by 4%. Automotive volumes increased and 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 2023 due to a weaker economy and more restrained consumer spending.
Operating profit (EBITA) increased to SEK 102 million (77).
The EBITA margin for Industrial Solutions increased to 7.0% (5.8). 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 224 million (71) in the second quarter. Including acquisitions, cash flow amounted to SEK 122 million (18). 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 106 million (113).
Cash flow after investments, excluding acquisitions, was SEK 178 million (30) in the first half of the year. Including acquisitions, cash flow amounted to SEK 76 million (−23). 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 227 million (243). Cash conversion for the last 12 months was 21% (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 borrowings of SEK 228 million.
Interestbearing assets decreased to SEK 815 million (1,115), while interestbearing financial liabilities rose to SEK 1,978 million (1,755). Net financial liabilities consequently totaled SEK 1,163 million (640). Payment of dividends and an increase in working capital requirements have been the main contributors to increased net debt. There are also interestbearing pension liabilities of SEK 172 million (174) and interestbearing lease liabilities of SEK 326 million (293). Shareholders' equity rose to SEK 5,349 million (4,998). The equity/assets ratio was 52% (49).
Cash flow after investments
Financial position • Net financial liabilities & equity/assets ratio
Financial position
| SEK million | 30/06/2023 | 30/06/2022 | 31/12/2022 |
|---|---|---|---|
| Interestbearing liabilities, credit institutions | – 1,978 | – 1,755 | – 1,719 |
| Cash and bank | 815 | 1,115 | 1,011 |
| Net financial liabilities | – 1,163 | – 640 | – 708 |
| Interestbearing pension liabilities | – 172 | – 174 | – 173 |
| Net financial liabilities, incl. pension liabilities | – 1,335 | – 814 | – 881 |
| Lease liabilities | – 326 | – 293 | – 314 |
| Net financial liabilities, including pension & lease liabilities | – 1,661 | – 1,107 | – 1,195 |
| Working capital | 1,380 | 828 | 1,108 |
| As a percentage of sales (average) (%) | 11.1 | 4.5 | 7.4 |
| Capital employed | 7,826 | 7,220 | 7,597 |
| Return on capital employed (average) (%) | 10.7 | 19.4 | 12.8 |
| Shareholders' equity | 5,349 | 4,998 | 5,392 |
| Return on shareholders' equity (average) (%) | 11.2 | 22.5 | 13.6 |
Personnel • Contact:
The average number of employees during the period was 5,919 (7,279). The decrease in the number of employees was 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.
- Christer Wahlquist, President and CEO, tel. +46705 804848.
- PerOla Holmström, CFO, tel. +46705 763340.
• Webcast conference call on 20 July:
In connection with the interim report, Nolato will hold a webcast conference call in English at 1.45 p.m. CET. Nolato will be represented by President and CEO Christer Wahlquist and CFO PerOla Holmström, who will present the interim report and answer questions. Information regarding telephone numbers and website is available at
https://financialhearings.com/event/
- 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.
Prior to publication this information constituted inside information that Nolato AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact persons set out above, at 1:00 p.m. CET on 20 July 2023.
Ownership and legal structure
Nolato AB (publ), with Swedish corporate identity number 5560804592, 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 16,797 shareholders at 30 June. The largest shareholders are the Jorlén family, the Boström family, the Hamrin family and Första APfonden with 9% each, the Lannebo Funds and Nordea Funds with 5% each, and Andra APfonden with 4% of capital.
The Parent Company
For the parent company, which has no operating activities, sales amounted to SEK 39 million (37). Profit after financial income and expense amounted to SEK −28 million (63) and was mainly affected by lower profit from participations in Group companies.
Contingent liabilities amounted to SEK 273 million (328).
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.
Financial information schedule
- Ninemonth interim report 2023: October 26, 2023
- 2023 yearend report: February 6, 2024
- Threemonth interim report 2024: May 6, 2024
- 2024 Annual General Meeting: May 6, 2024
- Sixmonth interim report 2024: July 18, 2024
- Ninemonth interim report 2024: October 24, 2024
- 2024 yearend report: February 6, 2025
Nolato's business
Nolato is a global, advanced hightech cooperation partner and manufacturer of polymer products and systems for leading customers in welldefined market areas such as medical technology, pharmaceuticals, consumer electronics, telecom, automotive, hygiene and other selected industrial sectors.
With its many years of experience, indepth 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 decisionmaking and shared ambitions endeavour to fulfil our vision and financial targets.
The sharing of experience between our business areas, leadingedge technology, wideranging development and design knowhow, advanced project management and efficient production allow us to establish longterm, 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 longterm collaboration/Partnerships with our customers
- Innovative, integrated and hightech 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
The Board of Directors and the President give their assurance that this interim report provides a true and fair view of the operations, financial position and earnings of the company and the Group, and describe the significant risks and uncertainty factors faced by the company and the companies included in the Group.
Torekov 20 July 2023
Fredrik Arp Chairman of the Board
Carina van den Berg Tomas Blomquist Sven Boström Board member Board member Board member
Board member Board member Board member
Lovisa Hamrin Åsa Hedin Erik LyngeJorlén
LarsÅke Rydh Steven Gorial Björn Jacobsson Board member Board member Board member
Employee representative Employee representative
Christer Wahlquist President and CEO
Review report
Nolato AB, corporate identity number 5560804592
Introduction
We have reviewed the condensed interim report for Nolato AB as at June 30, 2023 and for the six months period then ended. The Board of Directors and the Managing Director are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.
Scope of review
We conducted our review in accordance with the International Standard on Review Engagements, ISRE 2410 Review of Interim Financial Statements Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and other generally accepted auditing standards in Sweden.
The procedures performed in a review do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act regarding the Group, and in accordance with the Swedish Annual Accounts Act regarding the Parent Company.
Torekov 20 July 2023
Ernst & Young AB Joakim Falck Authorized public accountant
Consolidated income statement (summary)
| Q2 | Q2 | Q1 Q2 | Q1 Q2 | Rolling | Full year | ||
|---|---|---|---|---|---|---|---|
| SEK million | Note | 2023 | 2022 | 2023 | 2022 | 12 months | 2022 |
| Net sales | 1 | 2,478 | 2,905 | 4,954 | 5,784 | 9,944 | 10,774 |
| Cost of goods sold | – 2,118 | – 2,534 | – 4,246 | – 5,005 | – 8,587 | – 9,346 | |
| Gross profit | 360 | 371 | 708 | 779 | 1,357 | 1,428 | |
| Other operating income | 6 | 25 | 9 | 26 | 24 | 41 | |
| Selling expenses | – 58 | – 54 | – 113 | – 104 | – 222 | – 213 | |
| Administrative expenses | – 122 | – 97 | – 233 | – 191 | – 431 | – 389 | |
| Other operating expenses | — | 7 | – 2 | — | – 2 | — | |
| – 174 | – 119 | – 339 | – 269 | – 631 | – 561 | ||
| Operating profit | 2 | 186 | 252 | 369 | 510 | 726 | 867 |
| Financial income and expense | 2 | 6 | – 11 | – 4 | – 18 | 22 | 8 |
| Profit after financial income and expense | 2 | 192 | 241 | 365 | 492 | 748 | 875 |
| Tax | – 37 | – 51 | – 74 | – 101 | – 151 | – 178 | |
| Profit after tax | 155 | 190 | 291 | 391 | 597 | 697 | |
| All earnings are attrib. to the Parent Co.'s shareh. | |||||||
| Depreciation/amortization reg. noncurrent assets | 147 | 134 | 290 | 262 | 572 | 544 | |
| Basic earnings per share, SEK | 3 | 0.58 | 0.71 | 1.08 | 1.45 | 2.22 | 2.59 |
| Diluted earnings per share, SEK | 3 | 0.58 | 0.71 | 1.08 | 1.45 | 2.22 | 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 17.
Consolidated comprehensive income
| Q2 | Q2 | Q1 Q2 | Q1 Q2 | Rolling | Full year | |
|---|---|---|---|---|---|---|
| SEK million | 2023 | 2022 | 2023 | 2022 | 12 months | 2022 |
| Profit after tax | 155 | 190 | 291 | 391 | 597 | 697 |
| Other comprehensive income | ||||||
| Items that cannot be transferred to profit for the period | ||||||
| Revaluations of defined benefit pension plans | – 1 | 87 | 5 | 87 | 20 | 102 |
| Tax attrib. to items that cannot be transf. to profit for the per. | — | – 14 | – 1 | – 14 | – 4 | – 17 |
| – 1 | 73 | 4 | 73 | 16 | 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 | 179 | 233 | 178 | 287 | 235 | 344 |
| Changes in the fair value of cash flow hedges for the period | – 8 | 5 | – 5 | – 11 | 9 | 3 |
| Tax attrib. to changes in the fair value of cash flow hedges | 2 | – 1 | 1 | 2 | – 2 | – 1 |
| 173 | 237 | 174 | 278 | 242 | 346 | |
| Other comprehensive income, net of tax | 172 | 310 | 178 | 351 | 258 | 431 |
| Total comp. inc. for the per. attrib. to the Parent Co.'s shareh. | 327 | 500 | 469 | 742 | 855 | 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 | 30/06/2023 | 30/06/2022 | 31/12/2022 |
|---|---|---|---|
| Assets | |||
| Noncurrent assets | |||
| Intangible noncurrent assets | 2,567 | 2,439 | 2,472 |
| Property, plant and equipment | 3,290 | 3,090 | 3,174 |
| Noncurrent financial assets | 2 | 2 | 2 |
| Other noncurrent receivables | 1 | 2 | 1 |
| Deferred tax assets | 127 | 74 | 87 |
| Total fixed assets | 5,987 | 5,607 | 5,736 |
| Current assets | |||
| Inventories | 1,252 | 1,245 | 1,283 |
| Accounts receivable | 1,704 | 1,665 | 1,522 |
| Other current assets2) | 453 | 587 | 455 |
| Cash and bank | 815 | 1,115 | 1,011 |
| Total current assets | 4,224 | 4,612 | 4,271 |
| Total assets | 10,211 | 10,219 | 10,007 |
| Shareholders' equity and liabilities | |||
| Shareholders' equity | 5,349 | 4,998 | 5,392 |
| Longterm liabilities and provisions1) | 2,014 | 2,027 | 1,945 |
| Deferred tax liabilities1) | 290 | 252 | 294 |
| Current liabilities and provisions1) 3) | 2,558 | 2,942 | 2,376 |
| Total liabilities and provisions | 4,862 | 5,221 | 4,615 |
| Total shareholders' equity and liabilities | 10,211 | 10,219 | 10,007 |
| 1) Interestbearing/noninterestbearing liabilities and provisions: | |||
| Interestbearing liabilities and provisions | 2,476 | 2,222 | 2,206 |
| Noninterestbearing liabilities and provisions | 2,386 | 2,999 | 2,409 |
| Total liabilities and provisions | 4,862 | 5,221 | 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 |
8 | — | 4 |
| 3) Derivative liabilities are included in current liabilities and provisions at | 41 | 75 | 10 |
3) Derivative liabilities are included in current liabilities and provisions at
Changes in consolidated shareholders' equity (summary)
| Q1 Q2 | Q1 Q2 | 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 | 469 | 742 | 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. | 5,349 | 4,998 | 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)
| Q2 | Q2 | Q1 Q2 | Q1 Q2 | Rolling | Full year | |
|---|---|---|---|---|---|---|
| SEK million | 2023 | 2022 | 2023 | 2022 | 12 months | 2022 |
| Cash fl. from oper. activities bef. changes in work. cap. | 256 | 248 | 535 | 553 | 1,003 | 1,021 |
| Changes in working capital | – 16 | – 117 | – 220 | – 333 | – 502 | – 615 |
| Cash flow from operating activities | 240 | 131 | 315 | 220 | 501 | 406 |
| Cash flow from investment activities | – 118 | – 113 | – 239 | – 243 | – 447 | – 451 |
| Cash flow before financing activities | 122 | 18 | 76 | – 23 | 54 | – 45 |
| Cash flow from financing activities | – 246 | – 366 | – 284 | – 408 | – 363 | – 487 |
| Cash flow for the period | – 124 | – 348 | – 208 | – 431 | – 309 | – 532 |
| Cash and cash equiv. at the beginning of the period | 932 | 1,408 | 1,011 | 1,448 | — | 1,448 |
| Exchange rate difference in liquid assets | 7 | 55 | 12 | 98 | — | 95 |
| Cash and cash equivalents at the end of the period | 815 | 1,115 | 815 | 1,115 | — | 1,011 |
Note 1 Revenue
| Q1 Q2 2023 | Q1 Q2 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 | 548 | 81 | 20 | 447 | 494 | 68 | 17 | 409 | 963 | 138 | 35 | 790 |
| Other Europe | 2,462 | 1,341 | 369 | 752 | 3,243 | 1,088 | 1,443 | 712 | 5,657 | 2,317 | 1,953 | 1,387 |
| North America | 1,411 | 1,100 | 92 | 219 | 1,239 | 983 | 89 | 167 | 2,622 | 2,085 | 178 | 359 |
| Asia | 446 | 85 | 322 | 39 | 729 | 89 | 605 | 35 | 1,371 | 166 | 1,137 | 68 |
| Rest of world | 91 | 81 | 3 | 7 | 85 | 74 | 5 | 6 | 175 | 153 | 8 | 14 |
| Elimination internal sales | – 4 | – 6 | – 14 | |||||||||
| Tot. revenues fr. customer contracts | 4,954 | 2,688 | 806 | 1,464 | 5,784 | 2,302 | 2,159 | 1,329 | 10,774 | 4,859 | 3,311 | 2,618 |
The above table essentially covers products transferred at a specific date.
For the first six months of the year, the Group recognised decreased provision of impaired trade receivables of SEK 2 million. Impairment losses are recognised in the cost of goods sold.
Note 2 Reconciliation of consolidated income before tax
| Q1 Q2 | Q1 Q2 | Rolling | Full year | |
|---|---|---|---|---|
| SEK million | 2023 | 2022 | 12 months | 2022 |
| Operating profit (EBIT) | ||||
| Medical Solutions | 254 | 212 | 469 | 427 |
| Integrated Solutions | 37 | 231 | 139 | 333 |
| Industrial Solutions | 97 | 72 | 143 | 118 |
| Group adjustments, Parent Company | – 19 | – 5 | – 25 | – 11 |
| Consolidated operating profit (EBIT) | 369 | 510 | 726 | 867 |
| Financial income and expense (not distributed by business areas) | – 4 | – 18 | 22 | 8 |
| Consolidated profit before tax | 365 | 492 | 748 | 875 |
Including a nonrecurring item of SEK 41 million in financial income and expense in rolling 12 months and full year 2022. The nonrecurring 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)
| Q2 | Q2 | Q1 Q2 | Q1 Q2 | Rolling | Full year | |
|---|---|---|---|---|---|---|
| SEK million | 2023 | 2022 | 2023 | 2022 | 12 months | 2022 |
| Profit after tax | 155 | 190 | 291 | 391 | 597 | 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) | 0.58 | 0.71 | 1.08 | 1.45 | 2.22 | 2.59 |
| Nonrecurring items | — | — | — | — | – 41 | – 41 |
| Profit after tax excl. nonrecurring items | 155 | 190 | 291 | 391 | 556 | 656 |
| Basic earnings per share excl. nonrecurring items (SEK) | 0.58 | 0.71 | 1.08 | 1.45 | 2.06 | 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) | 0.58 | 0.71 | 1.08 | 1.45 | 2.22 | 2.59 |
| Diluted earnings per share excl. nonrec. items (SEK) | 0.58 | 0.71 | 1.08 | 1.45 | 2.06 | 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)
| Q2 | Q2 | Q1 Q2 | Q1 Q2 | Rolling | Full year | |
|---|---|---|---|---|---|---|
| SEK million | 2023 | 2022 | 2023 | 2022 | 12 months | 2022 |
| Profit after tax | 155 | 190 | 291 | 391 | 597 | 697 |
| Adjusted earnings: | ||||||
| Amort. of intangible assets arising from acquisitions | 12 | 12 | 22 | 21 | 42 | 41 |
| Tax on amortization | – 3 | – 2 | – 5 | – 4 | – 10 | – 9 |
| Adjusted earnings | 164 | 200 | 308 | 408 | 629 | 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) | 0.61 | 0.74 | 1.14 | 1.51 | 2.34 | 2.70 |
| Nonrecurring items | — | — | — | — | – 41 | – 41 |
| Adjusted earnings after tax, excl. nonrecurring items | 164 | 200 | 308 | 408 | 588 | 688 |
| Adj. basic earnings per share excl. nonrec. items (SEK) | 0.61 | 0.74 | 1.14 | 1.51 | 2.18 | 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) | 0.61 | 0.74 | 1.14 | 1.51 | 2.34 | 2.70 |
| Adj. diluted earn. per share excl. nonrec. items (SEK) | 0.61 | 0.74 | 1.14 | 1.51 | 2.18 | 2.55 |
Fiveyear 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 nonrecurring items.
Quarterly data (summary)
| IFRS measures | Note | Q1 | Q2 | Q3 | Q4 | Full year | |
|---|---|---|---|---|---|---|---|
| Operating profit (EBIT) (SEK million) | 2 | 2023 | 183 | 186 | — | — | — |
| 2 | 2022 | 258 | 252 | 205 | 152 | 867 | |
| 2021 | 299 | 377 | 331 | 326 | 1,333 | ||
| Basic earnings per share (SEK) | 3 | 2023 | 0.50 | 0.58 | — | — | — |
| 3 | 2022 | 0.75 | 0.71 | 0.59 | 0.54 | 2.59 | |
| 2021 | 0.85 | 1.09 | 0.96 | 1.43 | 4.32 | ||
| Diluted earnings per share (SEK) | 3 | 2023 | 0.50 | 0.58 | — | — | — |
| 3 | 2022 | 0.75 | 0.71 | 0.59 | 0.54 | 2.59 | |
| 2021 | 0.84 | 1.08 | 0.95 | 1.43 | 4.32 | ||
| Alternative performance measures | Note | Q1 | Q2 | Q3 | Q4 | Full year | |
| Net sales (SEK million) | 1 | 2023 | 2,476 | 2,478 | — | — | — |
| 1 | 2022 | 2,879 | 2,905 | 2,626 | 2,364 | 10,774 | |
| 2021 | 2,645 | 2,786 | 3,033 | 3,146 | 11,610 | ||
| Operating profit (EBITDA) (SEK million) | 2023 | 326 | 333 | — | — | — | |
| 2022 | 386 | 386 | 343 | 296 | 1,411 | ||
| 2021 | 414 | 492 | 450 | 449 | 1,805 | ||
| Operating profit (EBITA) (SEK million) | 2023 | 193 | 198 | — | — | — | |
| 2022 | 267 | 264 | 214 | 163 | 908 | ||
| 2021 | 308 | 386 | 339 | 336 | 1,369 | ||
| EBITA margin (%) | 2023 | 7.8 | 8.0 | — | — | — | |
| 2022 | 9.3 | 9.1 | 8.1 | 6.9 | 8.4 | ||
| 2021 | 11.6 | 13.9 | 11.2 | 10.7 | 11.8 | ||
| Profit after financial income and exp. (SEK million) | 2 | 2023 | 173 | 192 | — | — | — |
| 2 | 2022 | 251 | 241 | 197 | 186 | 875 | |
| 2021 | 286 | 360 | 322 | 433 | 1,401 | ||
| Profit after tax (SEK million) | 2023 | 136 | 155 | — | — | — | |
| 2022 | 201 | 190 | 160 | 146 | 697 | ||
| 2021 | 226 | 291 | 257 | 386 | 1,160 | ||
| Cash flow from operating activities (SEK million) | 2023 | 75 | 240 | — | — | — | |
| 2022 | 89 | 131 | 275 | – 89 | 406 | ||
| 2021 | 249 | 500 | 361 | 118 | 1,228 | ||
| Cash fl. from operations per share bef. dilution (SEK) | 2023 | 0.28 | 0.89 | — | — | — | |
| 2022 | 0.33 | 0.49 | 1.02 | – 0.33 | 1.51 | ||
| 2021 | 0.93 | 1.86 | 1.34 | 0.44 | 4.58 | ||
| Cash flow after investments, excluding acquisitions | 2023 | – 46 | 224 | — | — | — | |
| and disposals (SEK million) | 2022 | – 41 | 71 | 166 | – 188 | 8 | |
| 2021 | 71 | 346 | 116 | – 87 | 446 | ||
| Cash flow after investments, excl. acquisitions and | 2023 | – 0.17 | 0.83 | — | — | — | |
| disposals per share before dilution (SEK) | 2022 | – 0.15 | 0.26 | 0.62 | – 0.70 | 0.03 | |
| 2021 | 0.27 | 1.29 | 0.43 | – 0.32 | 1.66 | ||
| Adjusted basic earnings per share (SEK) | 3 | 2023 | 0.53 | 0.61 | — | — | — |
| 3 | 2022 | 0.77 | 0.74 | 0.62 | 0.57 | 2.70 | |
| 2021 | 0.87 | 1.11 | 0.98 | 1.46 | 4.43 | ||
| Shareholders' equity per share, before dilution (SEK) | 2023 | 21 | 20 | — | — | — | |
| 2022 | 19 | 19 | 20 | 20 | 20 | ||
| 2021 | 15 | 15 | 16 | 18 | 18 | ||
| Return on total capital (%) | 2023 | 8.4 | 7.9 | — | — | — | |
| 2022 | 14.8 | 13.3 | 11.6 | 9.1 | 9.1 | ||
| 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 | — | — | — |
| 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 | — | — | — |
| 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 | — | — | — |
| 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 | — | — | — |
| 2022 | 70.00 | 55.00 | 50.85 | 54.65 | 54.65 | |
| 2021 | 77.80 | 84.20 | 104.70 | 107.90 | 107.90 |
Including a nonrecurring item of SEK 41 million in profit after financial income and expense and profit after tax in Q42022. Including a nonrecurring item of SEK 50 million in operating profit and profit after tax in Q22021 and SEK 115 million in profit after financial income and expense and profit after tax in Q42021.
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 | 2022 | 1,088 | 1,214 | 1,245 | 1,312 | 4,859 | |
| 2021 | 1,006 | 1,021 | 977 | 1,063 | 4,067 | ||
| Integrated Solutions | 1 | 2023 | 414 | 392 | — | — | — |
| 1 | 2022 | 1,140 | 1,019 | 745 | 407 | 3,311 | |
| 2021 | 1,045 | 1,186 | 1,519 | 1,476 | 5,226 | ||
| Industrial Solutions | 1 | 2023 | 740 | 724 | — | — | — |
| 1 | 2022 | 653 | 676 | 638 | 651 | 2,618 | |
| 2021 | 595 | 580 | 540 | 609 | 2,324 | ||
| Group adjustments, Parent Company | 1 | 2023 | – 2 | – 2 | — | — | — |
| 1 | 2022 | – 2 | – 4 | – 2 | – 6 | – 14 | |
| 2021 | – 1 | – 1 | – 3 | – 2 | – 7 | ||
| Group total | 1 | 2023 | 2,476 | 2,478 | — | — | — |
| 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 | — | — | — | |
| EBITA margin (%) | 10.0 | 10.1 | — | — | — | ||
| 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 | — | — | — | |
| EBITA margin (%) | 5.3 | 4.1 | — | — | — | ||
| 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 | — | — | — | |
| EBITA margin (%) | 6.2 | 7.7 | — | — | — | ||
| 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 | — | — | — | |
| 2022 | – 2 | – 3 | — | – 6 | – 11 | ||
| 2021 | – 4 | 46 | – 3 | – 6 | 33 | ||
| Group total | 2023 | 193 | 198 | — | — | — | |
| EBITA margin (%) | 7.8 | 8.0 | — | — | — | ||
| 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 nonrecurring item of SEK 50 million in operating profit in Q2 2021. The nonrecurring item has been recognized at Group level and has therefore not affected the earnings of the business areas.
| Depreciation/writedowns/amortization (SEK million) | Q1 | Q2 | Q3 | Q4 | Full year | |
|---|---|---|---|---|---|---|
| Medical Solutions | 2023 | 84 | 87 | — | — | — |
| 2022 | 69 | 74 | 79 | 86 | 308 | |
| 2021 | 61 | 61 | 63 | 64 | 249 | |
| Integrated Solutions | 2023 | 17 | 18 | — | — | — |
| 2022 | 15 | 17 | 16 | 14 | 62 | |
| 2021 | 15 | 16 | 15 | 16 | 62 | |
| Industrial Solutions | 2023 | 42 | 42 | — | — | — |
| 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 | — | — | — |
| 2022 | 128 | 134 | 138 | 144 | 544 | |
| 2021 | 115 | 115 | 119 | 123 | 472 |
Group financial highlights
| Q2 | Q2 | Q1 Q2 | Q1 Q2 | Rolling | Full year | ||
|---|---|---|---|---|---|---|---|
| IFRS measures Note |
2023 | 2022 | 2023 | 2022 | 12 months | 2022 | |
| Basic earnings per share (SEK) | 3 | 0.58 | 0.71 | 1.08 | 1.45 | 2.22 | 2.59 |
| Diluted earnings per share (SEK) | 3 | 0.58 | 0.71 | 1.08 | 1.45 | 2.22 | 2.59 |
| Alternative performance measures | |||||||
| Net sales (SEK million) | 1 | 2,478 | 2,905 | 4,954 | 5,784 | 9,944 | 10,774 |
| Sales growth (%) | – 15 | 4 | – 14 | 6 | – 17 | – 7 | |
| Percentage of sales outside Sweden (%) | 89 | 91 | 89 | 92 | 90 | 91 | |
| Operating profit (EBITDA) (SEK million) | 333 | 386 | 659 | 772 | 1,298 | 1,411 | |
| Operating profit (EBITA) (SEK million)1) | 198 | 264 | 391 | 531 | 768 | 908 | |
| EBITA margin (%)1) | 8.0 | 9.1 | 7.9 | 9.2 | 7.7 | 8.4 | |
| Profit after financial income and exp. (SEK million) | 2 | 192 | 241 | 365 | 492 | 748 | 875 |
| Profit margin (%)1) | 7.7 | 8.3 | 7.4 | 8.5 | 7.5 | 8.1 | |
| Profit after tax (SEK million) | 155 | 190 | 291 | 391 | 597 | 697 | |
| Return on total capital (%)1) | — | — | 7.9 | 13.3 | 7.9 | 9.1 | |
| Return on capital employed (%)1) | — | — | 10.7 | 19.4 | 10.7 | 12.8 | |
| Return on operating capital (%)1) | — | — | 11.0 | 21.8 | 11.0 | 14.4 | |
| Return on shareholders' equity (%)1) | — | — | 11.2 | 22.5 | 11.2 | 13.6 | |
| Equity/assets ratio (%) | — | — | 52 | 49 | 52 | 54 | |
| Debt/equity (%) | — | — | 46 | 44 | 46 | 41 | |
| Interest coverage ratio (times) | 11 | 18 | 12 | 20 | 13 | 17 | |
| Net investments affecting cash flow, excl. acquisitions | 106 | 113 | 227 | 243 | 435 | 451 | |
| and disposals (SEK million) | |||||||
| Cash flow after investments, excl. acquisitions and disposals (SEK million) |
224 | 71 | 178 | 30 | 156 | 8 | |
| Cash conversion (%)1) | — | — | — | — | 21 | 1 | |
| Net financial liabilities, excl. pension & lease liabilities (SEK million) |
— | — | – 1,163 | – 640 | – 1,163 | – 708 | |
| Adjusted earnings per share, basic and diluted, (SEK) | 3 | 0.61 | 0.74 | 1.14 | 1.51 | 2.34 | 2.70 |
| Cash flow from operations per share, before and after dilution, (SEK) |
0.89 | 0.49 | 1.17 | 0.82 | 1.86 | 1.51 | |
| Cash flow after investments excluding acquisitions and disposals, per share, before and after dilution, (SEK) |
0.83 | 0.26 | 0.66 | 0.11 | 0.20 | 0.03 | |
| Shareholders' equity per share, before and after dilution, (SEK) |
— | — | 20 | 19 | — | 20 | |
| Average number of employees | — | — | 5,919 | 7,279 | — | 6,627 |
See definitions of IFRS measures and alternative performance measures on page 23.
1) KPIs calculated as specified on pages 24 and 25.
Including a nonrecurring 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 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 inthemoney, 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 nonrecurring 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
Interestbearing liabilities and provisions divided by shareholders' equity.
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 (–)
Interestbearing liabilities from credit institutions less interestbearing assets.
Operating profit (EBITA)
Operating profit (EBITDA) Earnings before financial income and expense, taxes and amortization of intangible assets arising from acquisitions.
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 noninterestbearing liabilities and provisions.
Return on shareholders' equity Operating profit as a percentage of average operating capital. Operating capital consists of total capital less noninterestbearing liabilities and provisions, less interestbearing assets.
EBITA margin Return on total capital 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.
Forwardlooking 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
| Q2 | Q2 | Q1 Q2 | Q1 Q2 | Rolling | Full year | ||
|---|---|---|---|---|---|---|---|
| SEK million unless otherwise specified | Note | 2023 | 2022 | 2023 | 2022 | 12 months | 2022 |
| Operating profit (EBITDA) | 333 | 386 | 659 | 772 | 1,298 | 1,411 | |
| Nonrecurring items | — | — | — | — | — | — | |
| Adjusted operating profit (EBITDA) | 333 | 386 | 659 | 772 | 1,298 | 1,411 | |
| Operating profit (EBIT) | 2 | 186 | 252 | 369 | 510 | 726 | 867 |
| Reversal of amort. of intangible assets arising | |||||||
| in connection with acquisitions | 12 | 12 | 22 | 21 | 42 | 41 | |
| Operating profit (EBITA) | 198 | 264 | 391 | 531 | 768 | 908 | |
| Nonrecurring items | — | — | — | — | — | — | |
| Adjusted operating profit (EBITA) | 198 | 264 | 391 | 531 | 768 | 908 | |
| EBITA margin (%) | 8.0 | 9.1 | 7.9 | 9.2 | 7.7 | 8.4 | |
| Adjusted EBITA margin (%) | 8.0 | 9.1 | 7.9 | 9.2 | 7.7 | 8.4 | |
| Profit after financial income and expense | 2 | 192 | 241 | 365 | 492 | 748 | 875 |
| Nonrecurring items | — | — | — | — | – 41 | – 41 | |
| Adjusted profit after financial income and expense | 192 | 241 | 365 | 492 | 707 | 834 | |
| Profit margin (%) | 7.7 | 8.3 | 7.4 | 8.5 | 7.5 | 8.1 | |
| Adjusted profit margin (%) | 7.7 | 8.3 | 7.4 | 8.5 | 7.1 | 7.7 | |
| Profit after tax | 155 | 190 | 291 | 391 | 597 | 697 | |
| Nonrecurring items | — | — | — | — | – 41 | – 41 | |
| Tax on nonrecurring items | — | — | — | — | — | — | |
| Adjusted profit after tax | 155 | 190 | 291 | 391 | 556 | 656 | |
| Cash fl. after investm., excl. acquisitions and dispos. | — | — | — | — | 156 | 8 | |
| Operating profit (EBIT) | 2 | — | — | — | — | 726 | 867 |
| Cash conversion (%) | — | — | — | — | 21 | 1 |
Including a nonrecurring item of SEK 41 million in financial income and expense in rolling 12 months and full year 2022. The nonrecurring items have been recognised at Group level and has therefore not affected the earnings of the business areas.
| Alternative performance measures | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 |
|---|---|---|---|---|---|---|---|---|---|
| SEK million unless otherwise specified | 2023 | 2023 | 2022 | 2022 | 2022 | 2022 | 2021 | 2021 | 2021 |
| Profit after financial income and exp., rolling 12 months | 748 | 797 | 875 | 1,122 | 1,247 | ||||
| Financial expense, rolling 12 months | 64 | 59 | 56 | 51 | 46 | ||||
| Adj. profit after financial inc. and exp., rolling 12 months | 812 | 856 | 931 | 1,173 | 1,293 | ||||
| Total capital, at the end of period | 10,211 | 10,147 | 10,007 | 10,635 | 10,220 | 9,984 | 10,056 | 9,542 | 8,784 |
| Average total capital, last 5 quarters | 10,244 | 10,199 | 10,180 | 10,087 | 9,717 | ||||
| Return on total capital (%) | 7.9 | 8.4 | 9.1 | 11.6 | 13.3 | ||||
| Adj. profit after financial inc. and exp., rolling 12 months | 812 | 856 | 931 | 1,173 | 1,293 | ||||
| Capital employed, at the end of period | 7,826 | 7,726 | 7,597 | 7,659 | 7,220 | 7,074 | 6,809 | 6,318 | 5,984 |
| Average capital employed, last 5 quarters | 7,606 | 7,455 | 7,272 | 7,016 | 6,681 | ||||
| Return on capital employed (%) | 10.7 | 11.5 | 12.8 | 16.7 | 19.4 | ||||
| Operating profit (EBIT), rolling 12 months | 726 | 791 | 867 | 1,041 | 1,167 | ||||
| Capital employed, at the end of period | 7,826 | 7,726 | 7,597 | 7,659 | 7,220 | 7,074 | 6,809 | 6,318 | 5,984 |
| Cash and bank, at the end of period | – 815 | – 932 – 1,011 – 1,193 – 1,115 – 1,407 – 1,448 – 1,400 – 1,248 | |||||||
| Operating capital, at the end of period | 7,011 | 6,794 | 6,586 | 6,466 | 6,105 | 5,667 | 5,361 | 4,918 | 4,736 |
| Average operating capital, latest 5 quarters | 6,592 | 6,324 | 6,037 | 5,703 | 5,357 | ||||
| Return on operating capital (%) | 11.0 | 12.5 | 14.4 | 18.3 | 21.8 | ||||
| Profit after tax, rolling 12 months | 597 | 632 | 697 | 937 | 1,034 | ||||
| Shareholders' equity, at the end of period | 5,349 | 5,534 | 5,392 | 5,398 | 4,998 | 5,010 | 4,768 | 4,280 | 3,951 |
| Average shareholders' equity, latest 5 quarters | 5,334 | 5,266 | 5,113 | 4,891 | 4,601 | ||||
| Return on shareholders' equity (%) | 11.2 | 12.0 | 13.6 | 19.2 | 22.5 |
Acquisition of P&P Technology Ltd.
Description of P&P Technology Ltd.
Nolato has acquired UKbased P&P Technology. The company, which has annual sales equivalent to approximately SEK 25 million with good profitability, provides component and materialsbased 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 debtfree, 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 3 million to the Nolato Group's revenue in the second quarter of 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 taxdeductible according to UK tax rules.
Net assets
| Balance sheet at time of acquisition |
Adjustment to fair value |
Fair value |
|
|---|---|---|---|
| Noncurrent 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 noncurrent 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 |
Noncurrent intangible assets in the form of customer rela@onships are es@mat ed to amount to SEK 4 million an d will be amor@zed 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 | |
|---|---|
| Cash paid, acquisition value | 12 |
| Less acquired cash and cash equivalents | 0 |
| Net cash flow from acquisition | 12 |
Parent Company income statement (summary)
| Q2 | Q2 | Q1 Q2 | Q1 Q2 | Rolling | Full year | |
|---|---|---|---|---|---|---|
| SEK million | 2023 | 2022 | 2023 | 2022 | 12 months | 2022 |
| Net sales | 20 | 18 | 39 | 37 | 67 | 65 |
| Selling expenses | – 2 | – 2 | – 3 | – 4 | – 6 | – 7 |
| Administrative expenses | – 19 | – 16 | – 38 | – 30 | – 65 | – 57 |
| Other operating income | 2 | 1 | 4 | 2 | 7 | 5 |
| Other operating expenses | – 13 | – 15 | – 25 | – 32 | – 54 | – 61 |
| Operating profit | – 12 | – 14 | – 23 | – 27 | – 51 | – 55 |
| Profit from participations in Group companies | 33 | 115 | 33 | 115 | 200 | 282 |
| Financial income | 13 | 12 | 25 | 34 | 51 | 60 |
| Financial expenses | – 55 | – 40 | – 63 | – 59 | – 107 | – 103 |
| Profit after financial income and expense | – 21 | 73 | – 28 | 63 | 93 | 184 |
| Appropriations | — | — | — | — | 266 | 266 |
| Tax | 4 | 4 | 5 | 13 | – 50 | – 42 |
| Profit after tax | – 17 | 77 | – 23 | 76 | 309 | 408 |
| Depreciation/amortization | — | — | — | — | — | — |
Parent Company balance sheet (summary)
| SEK million | 30/06/2023 | 30/06/2022 | 31/12/2022 |
|---|---|---|---|
| Assets | |||
| Property, plant and equipment | 1 | 1 | 1 |
| Financial assets | 4,211 | 4,013 | 4,061 |
| Deferred tax assets | 10 | 19 | — |
| Total fixed assets | 4,222 | 4,033 | 4,062 |
| Other receivables | 526 | 598 | 890 |
| Cash and bank | 5 | 109 | 6 |
| Total current assets | 531 | 707 | 896 |
| Total assets | 4,753 | 4,740 | 4,958 |
| Shareholders' equity and liabilities | |||
| Shareholders' equity | 2,470 | 2,671 | 3,004 |
| Untaxed reserves | 247 | 285 | 247 |
| Deferred tax liabilities | — | — | 1 |
| Other provisions | 6 | 7 | 4 |
| Longterm liabilities | 1,574 | 1,461 | 1,511 |
| Current liabilities | 456 | 316 | 191 |
| Total shareholders' equity and liabilities | 4,753 | 4,740 | 4,958 |
| Transactions with related parties | Period | Services sold |
Services bought |
Interest income |
expenses | Interest Result from shares in |
Rec fr rel part on bal |
Liab to rel part on bal |
|---|---|---|---|---|---|---|---|---|
| SEK million | Group com | sheet date | sheet date | |||||
| Subsidiary | Q1 Q2 2023 | 39 | – 15 | 25 | — | 33 | 1,290 | 144 |
| Subsidiary | Q1 Q2 2022 | 37 | – 13 | 34 | — | 115 | 1,477 | 127 |
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, SE269 78 Torekov, Sweden
• Tel. +46 431 442290 • Fax +46 431 442291
• Corp. id. number 5560804592 • Email [email protected] • Website www.nolato.com