Nolato B

Report Publication Announcement • Oct 21, 2022

PRESS RELEASE 21 October 2022 08:10 CEST

New regulatory requirements in China affect Nolato' s Integrated Solutions business area

The Chinese authorities have introduced new regulatory requirements that include the manufacture of products in the Vaporiser Heating Products (VHP) area in China from October 2022. The processing of licenses has been ongoing since spring 2022. Like several other companies, Nolato has not yet received any such license. Nolato has consequently not produced any VHP products in China during the current month.

"Since the spring, we have been informed that a new form of licensing applies for VHP products, and we submitted the requested information. At the beginning of October, we were notified that Nolato was one of the companies that has not initially received this license. Since then, we have been working closely with the Chinese authorities to understand why and to put in place alternative solutions. Our overall assessment is that we are now at the stage where fourth-quarter sales and profit will be negatively affected, as we can no longer offset October's production loss in the current quarter," said Christer Wahlquist, Nolato President and CEO.

Nolato therefore estimates that total fourth-quarter sales for the Integrated Solutions business area will be in the region of half a billion kronor.

Nolato's full interim report for the third quarter will be published on October 27 at 1:45 p.m. CET.

Contact

For further information, please contact: Christer Wahlquist, President and CEO, +46 (0)705 804848 Per-Ola Holmström, CFO, +46 (0)705 763340, per-ola.holmstrom@nolato.com

About Us

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/IR

This information is information that Nolato is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2022-10-21 08:10 CEST.

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New regulatory requirements in China affect Nolato's Integrated Solutions business area