Interim Report January–September 2011

Q3—continued earnings improvement and positive cash flow

FINANCIAL PERFORMANCE, JANUARY-SEPTEMBER

Sales increased by 8% to SEK 911.2 (843.9) million.
The operating profit was SEK 49.3 (-60.4) million. The profit for the first three quarters of the previous year included structural and other non-recurring costs of approximately SEK -47 million.
The operating margin was 5.4% (-7.2%). Adjusted for the previous year's non-recurring costs of some SEK -47 million, this is an increase of 7.0 percentage points.
The profit after financial items was SEK 43.1 (-67.6) million.
The profit after tax was SEK 30.8 (-64.0) million, corresponding to SEK 1.07 (-2.80) per share.
Cash flow after investments improved by SEK 99.4 million to SEK 45.6 (-53.8) million, or SEK 1.58 (-2.36) per share.

SIGNIFICANT EVENTS IN THE PERIOD

Divestment of NOTE Tauragé An Extraordinary General Meeting (EGM) on 21 June 2011 approved the Board of Directors' proposal to divest all the shares in NOTE Tauragé UAB, Lithuania. As part of the restructuring measures in 2010, manufacturing ceased at NOTE Tauragé at year-end. This transaction was conducted to accelerate the liquidation of this legal entity cost-effectively.

FINANCIAL PERFORMANCE, JULY-SEPTEMBER

Sales amounted to SEK 272.5 (271.9) million.
The operating profit was SEK 13.5 (-4.1) million. Last year's profit for the third quarter included structural and other non-recurring costs of approximately SEK -3 million.
The operating margin was 4.9% (-1.5%).
The profit after financial items was SEK 12.6 (-6.6) million.
The profit after tax was SEK 9.4 (-8.9) million, corresponding to SEK 0.32 (-0.31) per share.
Cash flow after investments amounted to SEK 22.1 (-13.2) million, or SEK 0.77 (-0.46) per share.

Reinforcement of Industrial Plants During the autumn, NOTE has strengthened the commercial capacity of its Industrial Plants. Its ambition is to create the prospects for sales growth in new types of business where NOTE has not previously been competitive enough. Responsibility for this initiative rests with the former subsidiary Presidents in China and Estonia.

New Presidents of subsidiaries with sector experience have been hired, with the primary duty to manage the future development of NOTE's Chinese and Estonian businesses.

CEO's comment

CONTINUED EARNINGS IMPROVEMENT AND POSITIVE CASH FLOW

We have now achieved four consecutive quarters of positive earnings and cash flow. In the past 12-month period, our operating profit totals over SEK 61 million, equivalent to an operating margin of 4.8%. In the same period, cash flow after investments is some SEK 85 million. This progress is really positive, and for some time now, we are one of the most profitable companies in comparison with our listed Nordic competitors once again.

What is fundamental to this positive performance is the fairly extensive restructuring program completed last year. Then, we concentrated production to fewer units in Sweden and internationally. In this way, we increased capacity utilisation through the group simultaneous with a significant decrease in our costs —year to date, we have cut costs by some 16%.

Against the background of the challenges NOTE previously faced, we are putting a lot of energy into raising the confidence levels of existing and new customers. This takes time, and accordingly, it is pleasing that in the year, we have increased sales.

Another important factor for NOTE's positive progress is that with our restructuring program behind us, we have been able to intensify our methodical work on improvement. Everything we do now is intended to create the prospects for increased efficiency, improve delivery precision and quality levels, creating an even stronger customer offering. The positive trend of the group's key ratios for quality and delivery precision is a clear indication that we are heading in the right direction—we are at levels matching our high standards.

Additionally, we have strengthened the commercial capacity at our Industrial Plants during the autumn. I have got high expectations of this initiative. This will create the prospects for sales growth in new types of business where previously, we were not competitive enough. This work is being headed up by our former subsidiary Presidents in Estonia and China. In tandem, we have hired new, experienced operational executives whose primary duty is to continue to manage the development of our Industrial Plants.

PROGRESS IN THE YEAR

In the first half-year, the market for outsourced electronics manufacturing continued to progress positively. Our sales, which in the short term, are closely linked to volumes in current customer assignments, increased by 8% year to date to SEK 911.2 (843.9) million.

At the midpoint of the year, we raised a warning flag for some slowdown in demand. But sales in the third quarter were SEK 272.5 (271.9) million, which was somewhat better than expected.

Year to date, operating profit was SEK 49.3 million, equivalent to an operating margin of 5.4%. Adjusted for non-recurring items in the previous year, this means a SEK 62.9 million profit improvement. Calculated in the same way, our operating margin improved by 7.0 percentage points. To all intents and purposes, this strong progress is linked to decreased costs, partly from our structural actions and partly from ongoing improvement work. Even in the normally seasonally weak third quarter, progress remained brisk—our operating profit improved to SEK 13.5 (-1.3) million adjusted for non-recurring costs in the previous year.

Cash flow after investments remained positive in the third quarter, and for the full period, was SEK 45.6 (-53.8) million.

FUTURE

Our visibility of future manufacturing volumes is relatively short. However, we have proceeded from growing uncertainty in the global economy resulting in decreased demand. Accordingly, straight after the holiday period, we developed new savings plans for all units—which we have already launched in some units.

Our regular sales in the fourth quarter of last year were strong. However, some 5% of the sales were non-recurring, consisting of materials at zero margins to our former joint venture in Poland. Just like many of our customers, market conditions are hard to assess. Through our savings actions, we are prepared for decreased volumes as early as the fourth quarter of this year.

We put a big emphasis on continuously improving quality and delivery precision for our customers. We have sharpened our focus on improving our cash flow and our liquidity.

In the longer perspective, our goal is for NOTE to continue to grow, but profitability is our priority. The positive profit and cash flow progress we have made over the past four quarters strengthens our conviction that we are on the right track.

Peter Laveson President and CEO

Sales and results of operations

SALES, JANUARY-SEPTEMBER

Activity and demand from our customers has been positive since the second quarter last year. This has meant that volumes on current assignments have increased simultaneous with new business starting to gather pace. Sales in the period increased by 8% to SEK 911.2 (843.9) million.

NOTE sells to a large number of customers, who essentially, are active in the engineering and communication industries in the Nordics and UK. The 15 largest customers in sales terms represented 59% (53%) of consolidated sales.

Back at the midpoint of the year, NOTE raised a warning flag for some demand slowdown. But sales in the third quarter were somewhat higher than expected and at about the same level as in the corresponding period of the previous year. At the end of the period, the group's order book, which consists of a combination of firm orders and estimates, was down just over 10% on the corresponding point of the previous year.

For a longer period and on to the midpoint of the year, the global market for electronic components featured a severe shortage with long lead-times for materials. Against the background of a very significant share of the world's electronic components being produced by Japanese manufacturers, the massive earthquake catastrophe in the first quarter exacerbated uncertainty on the component market. This shortage required extra work input to keep deliveries as planned. But since the summer, the situation on the electronic components market has stabilised.

RESULTS OF OPERATIONS, JANUARY-SEPTEMBER

At the beginning of last year, NOTE decided to intensify its structural transformation.

Its objective was to implement savings and restructuring measures with a minimum annualized positive profit effect of SEK 50 million. As part of this program, NOTE's manufacturing units were further concentrated in Sweden and internationally. Operations with a poor fit were closed down or divested. Central resources were adapted to current market conditions. To all intents and purposes, the program was completed at year-end 2010.

The group's capacity utilisation has increased as a result of these measures. Competitiveness has been enhanced. Adjusted for restructuring and other nonrecurring costs in the previous year, costs were approximately 16% lower in the period compared to the previous year.

Largely as a result of higher volumes and cost reductions, gross margin increased by 3.0% to 10.9% (7.9%), adjusted for non-recurring items in the previous year.

Furthermore, as a result of the restructuring program, selling and administrative overheads decreased by approximately 30%, corresponding to 5.7% of sales for the period. Adjusted for nonrecurring items in the previous year, overheads were 8.8% of sales.

Adjusted for non-recurring items in the previous year, operating profit improved by SEK 62.9 million, and amounted to SEK 49.3 (-13.6) million, which corresponds to an operating margin of 5.4% (-1.6%). The sale of NOTE Tauragé in the second quarter, conducted to accelerate the liquidation of this legal entity, had only a limited positive impact on operating margin in the period.

Mainly as a result of decreased net debt, net financial income/expense for the period was SEK -6.2 (-7.2) million.

The profit after financial items was SEK 43.1 (-67.6) million.

SALES AND RESULTS OF OPERATIONS, JULY-SEPTEMBER

Sales in the third quarter, which normally are relatively weak in seasonal terms, amounted to SEK 272.5 (271.9) million. This progress was somewhat stronger than previously expected.

Despite sales being generally at unchanged levels, and mainly as a result of cost rationalizations implemented, gross margins expanded by 4.3 percentage points to 11.2% (6.9%).

Adjusted for the non-recurring costs of the previous year, sales and administration overheads decreased by some 30%. These overheads represented 5.5% (7.8%) of sales for the period.

Operating profit was SEK 13.5 (-4.1) million. Adjusted for non-recurring costs in the previous year, operating profit increased by SEK 14.8 million and operating margin increased to 4.9% (-0.5%).

The profit after financial items amounted to SEK 12.6 (-6.6) million.

Operating segments

NOTE is a local production partner with an international platform for manufacturing electronicsbased products that require high technology competence and flexibility across large parts of product lifecycles.

As part of the Nearsourcing business model, operations are conducted as an integrated process. The Nearsourcing centres provide development and production engineering services in close partnership with customers, such as selecting materials, production of prototypes, series production and testing. NOTE's Industrial Plants essentially provide cost-efficient volume production in both Europe and Asia. Development, management and coordination of operations are conducted in the parent company, and sourcing operations in NOTE Components.

Significant key ratios for NOTE's business segments are stated in the following table, pursuant to IFRS 8. Essentially, these consist of Nearsourcing centres and Industrial Plants. Nearsourcing centres include selling units in Sweden, Norway, Finland and the UK, where new and existing business is developed in close cooperation with the customer. Industrial Plants are the production units in Estonia and China. Other units are business support, group-wide operations.

	2011	2010	2011	2010	Rolling	2010
	Q3	Q3	Q1-Q3	Q1-Q3	12 mth.	full yr.
NEARSOURCING CENTRES
EXTERNAL SALES	250.4	250.1	851.7	794.2	1,195.2	1,137.7
INTERNAL SALES	4.7	13.7	17.5	46.2	30.2	58.9
MANUFACTURING, SELLING AND ADMINISTRATIVE EXPENSES	-69.2	-73.5	-229.2	-255.0	-308.3	-334.1
DEPRECIATION AND AMORTISATION	-2.7	-3.4	-8.8	-10.6	-10.9	-12.7
OPERATING PROFIT	12.7	6.1	55.2	11.7	91.7	48.2
PROPERTY, PLANT AND EQUIPMENT	32.5	26.9	32.5	26.9	32.5	29.2
STOCK	124.2	138.4	124.2	138.4	124.2	123.5
AVERAGE NUMBER OF EMPLOYEES	446	417	446	412	442	417

INDUSTRIAL PLANTS
EXTERNAL SALES	22.1	19.7	59.4	46.0	85.7	72.3
INTERNAL SALES	72.8	121.4	222.9	330.2	341.3	448.6
MANUFACTURING, SELLING AND ADMINISTRATIVE EXPENSES	-16.3	-31.7	-46.4	-119.4	-83.0	-156.0
DEPRECIATION AND AMORTISATION	-2.1	-3.9	-6.8	-12.6	-11.7	-17.5
OPERATING PROFIT	0.2	-3.4	1.4	-50.5	-19.0	-70.9
PROPERTY, PLANT AND EQUIPMENT	27.1	55.7	27.1	55.7	27.1	43.5
STOCK	82.6	97.8	82.6	97.8	82.6	69.1
AVERAGE NUMBER OF EMPLOYEES	486	579	488	575	508	573

OTHER UNITS AND ELIMINATIONS
EXTERNAL SALES	0.0	2.1	0.0	3.7	-2.9	0.8
INTERNAL SALES	-77.5	-135.1	-240.4	-376.4	-371.5	-507.5
MANUFACTURING, SELLING AND ADMINISTRATIVE EXPENSES	0.2	0.7	-6.1	-0.8	-4.3	1.0
DEPRECIATION AND AMORTISATION	0.0	-0.4	0.0	-1.3	-0.4	-1.7
OPERATING PROFIT	0.6	-6.8	-7.3	-21.6	-11.1	-25.5
PROPERTY, PLANT AND EQUIPMENT	0.0	1.6	0.0	1.6	0.0	0.1
STOCK	0.0	0.0	0.0	0.0	0.0	0.0
AVERAGE NUMBER OF EMPLOYEES	17	10	17	10	15	10

Financial position, cash flow and investments

CASH FLOW

Competing successfully in the high mix/low volume market segment means that NOTE faces a major challenge in continuously improving working methods in sourcing, inventory control and logistics. These challenges are especially apparent in rapid cyclical demand upturns and downturns, and relate mainly to the complexity of materials supply and changing leadtimes of electronic components.

The global market for electronic components still featured a shortage in the first half-year, with extended lead-times resulting for certain components. NOTE made the necessary major efforts alongside customers and suppliers to dimension inventory levels and attain good delivery precision. However, the situation on the component market stabilised in the third quarter.

Through focused efforts, inventories had decreased by 12% year on year at the end of the period, despite the sales increase.

Mainly as a result of the seasonal volume decrease in the third quarter, at the end of the period, accounts receivable—trade were down 8% on the previous year-end. Accounts receivable—trade were down by 1% on the corresponding point of the previous year. Accordingly, the number of outstanding days of credit were somewhat lower than in the previous year.

Accounts payable—trade, which mainly relate to sourcing electronic components and other production materials, were down 9% on the previous year-end and 2% lower than the corresponding point of the previous year.

Cash flow (after investments) improved by nearly SEK 100 million to SEK 45.6 (-53.8) million, corresponding to SEK 1.58 (-2.36) per share. Repayment of interest-bearing receivables associated with the sale of the 50% holding in NOTEFideltronik had a positive effect on investing activities of SEK 20.5 million.

Significant events in the period

EXTENSIVE RESTRUCTURING COMPLETED IN 2010

Restructuring measures decided in the first quarter last year including relocation and closure of production in Skänninge, Sweden, and Tauragé, Lithuania, were completed as planned in December 2010. The operations at Gdansk, Poland, were also EQUITY TO ASSETS RATIO

The equity to assets ratio was 38.5% (30.4%) at the end of the period, up 7.2 percentage points since year-end. The increase is largely due to the positive profit performance.

LIQUIDITY

The problematic situation on the global market for electronic components in combination with sales growth has increased demand for working capital since summer last year, placing a significant strain on group liquidity from time to time. NOTE is maintaining a sharp focus on measures that further improve group liquidity and cash flow.

Available cash and cash equivalents, including unutilised overdraft facilities, were SEK 80.1 (32.7) million at the end of the period. Factored accounts receivable – trade were some SEK 176 (139) million at the end of the period.

INVESTMENTS

Investments in property, plant and equipment in the first half-year, excluding sales, were SEK 5.1 (1.6) million, corresponding to 0.6% (0.2%) of sales. Depreciation and amortisation was SEK 15.6 (24.5) million.

Investments in the year are expected to be at a relatively low level looking ahead.

closed down and the 50% holding in the NOTEFideltronik electronics plant in Krakow, Poland, was divested. Some SEK -47 million of restructuring and other non-recurring costs were charged to operating profit for the full year.

DIVESTMENT OF NOTE TAURAGÉ

An Extraordinary General Meeting on 21 June 2011 approved the Board of Director's proposal to divest all the shares in NOTE Tauragé UAB, Lithuania. As part of the restructuring measures in 2010, manufacturing ceased at NOTE Tauragé at year-end. This transaction was conducted to accelerate the liquidation of this legal entity cost-effectively.

REINFORCEMENT OF INDUSTRIAL PLANTS

During the autumn, NOTE has strengthened the commercial capacity of its Industrial Plants. Its ambition is to create the prospects for sales growth in new types of business where NOTE has not previously been competitive enough. Responsibility for this initiative rests with the former subsidiary Presidents in China and Estonia.

New Presidents of subsidiaries with sector experience have been hired, with the primary duty to manage the future development of NOTE's Chinese and Estonian businesses.

Parent company

Parent company NOTE AB (publ) is primarily focused on the management, coordination and development of the group. In the period, revenue was SEK 25.9 (30.3) million and mainly related to intra-group services. The loss after tax was SEK -4.4 (-74.3) million. As a result of the sale of the CAD operation and the 50% holding in NOTEFideltronik last year, interest-bearing receivables in the parent company were approximately SEK 10 (-) million.

Significant operational risks

NOTE is a leading manufacturing partner for outsourced electronics production in the Nordics. It has especially strong market positioning in the high mix/low volume market segment, i.e. for products in small to medium-sized series that require high technology competence and flexibility. NOTE produces PCBs, sub-assemblies and box build products. NOTE's offering covers the whole product lifecycle, from design to after-sales. NOTE's role includes being a collaboration partner for its customers, but not a product owner.

The market for outsourced electronics production is relatively young and usually considered fairly cyclical. Of the somewhat larger traditional players on this market, there are few, if any, that have succeeded in retaining good profitability through a business cycle.

The Board of Directors of NOTE AB (publ)

Danderyd, Sweden, 19 October 2011

TRANSACTIONS WITH RELATED PARTIES

Transactions with related parties were mainly intragroup sales of services to joint ventures in the period until year-end 2010. These transactions have ceased after the divestment of the 50% holding in NOTEFideltronik in Krakow, Poland.

This fact played an important role in NOTE's choice of strategy for its future.

NOTE's focus on Nearsourcing, targeting increased sales growth in combination with reduced overheads and investment costs in high-cost countries, is a way of reducing the risks of operations.

For a more detailed review of the group's operational and financial risks, refer to the Risks section on page 17, the Report of the Directors on pages 38-39 and note 25 Financial risks and finance policy on page 55 of NOTE's Annual Report for 2010.

NOTE's operations set fairly high demands on working capital funding. Accordingly, it has a sharp focus on managing liquidity risk.

REVIEW REPORT

We have conducted a limited review of the Interim Report for NOTE AB (publ) for the period 1 January – 30 September 2011. The preparation and presentation of these interim financial statements pursuant to IAS 34 and the Swedish Annual Accounts Act are the responsibility of the Board of Directors and Chief Executive Officer. Our responsibility is to report our conclusions concerning these interim financial statements on the basis of our limited review.

We have conducted our limited review pursuant to the Standard for Limited Review (SÖG) 2410 "Limited review of interim financial information conducted by the company's appointed auditor." A limited review consists of making inquiries, primarily to individuals responsible for financial and accounting matters, as well as performing analytical procedures and taking other limited review measures. A limited review has a different focus and significantly less scope than an audit according to ISA and generally accepted auditing practice. The review procedures undertaken in a limited review do not enable us to obtain a level of assurance where we would be aware of all important circumstances that would have been identified had an audit been conducted. Therefore, a conclusion reported on the basis of a limited review does not have the level of certainty of a conclusion reported on the basis of an audit.

Based on our limited review, no circumstances have come to our attention that would give us reason to believe that the interim financial statements have not been prepared pursuant to IAS 34 and the Swedish Annual Accounts Act for the group, and pursuant to the Swedish Annual Accounts Act for the parent company, in all material respects.

Magnus Brändström Anders Magnussen Authorised Public Accountant Authorised Public Accountant Senior Auditor

Öhrlings PricewaterhouseCoopers

Stockholm, Sweden, 19 October 2011

FOR MORE INFORMATION, PLEASE CONTACT

Peter Laveson, President & CEO +46 (0)8 568 99006, +46 (0)70 433 9999 Henrik Nygren, CFO +46 (0)8 568 99003, +46 (0)70 977 0686

FORTHCOMING FINANCIAL REPORTS

10 February 2012 Year-end Report 2011 25 April 2012 Interim Report January-March

ACCOUNTING AND VALUATION PRINCIPLES

NOTE adopts International Financial Reporting Standards (IFRS) as endorsed by the European Union. Significant accounting and valuation principles are stated on pages 44-47 of the Annual Report for 2010. The group's Interim Report has been prepared in accordance with the Swedish Annual Accounts Act and IAS 34, Interim Financial Reporting. The parent company observes RFR 2, issued by the Swedish Financial Reporting Board.

All amounts are in millions of Swedish kronor (SEK million) unless otherwise stated.

DISCREPANCIES BETWEEN REPORTS

Swedish and English-language versions of this Report have been produced. In the event of any discrepancy between the two, the Swedish version shall apply.

Consolidated Income Statement

	2011 Q3	2010 Q3	2011 Q1-Q3	2010 Q1-Q3	Rolling 12 mth.	2010 Full yr.
REVENUES COST OF GOODS AND SERVICES SOLD	272.5 -242.0	271.9 -253.1	911.2 -811.8	843.9 -815.7	1,278.0 -1,146.3	1,210.7 -1,150.2
GROSS PROFIT	30.5	18.8	99.4	28.2	131.7	60.5
SALES COSTS ADMINISTRATIVE COSTS OTHER OPERATING INCOME/COSTS	-7.5 -6.9 -2.6	-11.7 -12.3 1.1	-26.9 -24.5 1.3	-41.8 -40.4 -6.4	-38.5 -33.9 2.3	-53.6 -49.8 -5.3
OPERATING PROFIT	13.5	-4.1	49.3	-60.4	61.6	-48.2
NET FINANCIAL INCOME/EXPENSE	-0.9	-2.5	-6.2	-7.2	-10.4	-11.2
PROFIT AFTER FINANCIAL ITEMS	12.6	-6.6	43.1	-67.6	51.2	-59.4
INCOME TAX	-3.2	-2.3	-12.3	3.6	-18.4	-2.6
PROFIT AFTER TAX FOR THE PERIOD	9.4	-8.9	30.8	-64.0	32.8	-62.0

Earnings per share

	2011	2010	2011	2010	Rolling	2010
	Q3	Q3	Q1-Q3	Q1-Q3	12 mth.	Full yr.
NUMBER OF OUTSTANDING SHARES AT END OF PERIOD (000)	28,873	28,873	28,873	28,873	28,873	28,873
WEIGHTED AVERAGE NO. OF SHARES (000)	28,873	28,873	28,873	22,815	28,873	24,342
EARNINGS PER SHARE, SEK	0.32	-0.31	1.07	-2.80	1.14	-2.55

Consolidated Statement of Comprehensive Income

	2011 Q3	2010 Q3	2011 Q1-Q3	2010 Q1-Q3	Rolling 12 mth.	2010 Full yr.
NET PROFIT	9.4	8.9	30.8	-64.0	32.8	-62.0
OTHER COMPREHENSIVE INCOME EXCHANGE RATE DIFFERENCES CASH FLOW HEDGES	4.0 0.1	-4.5 -	3.6 0.2	-9.4 -	2.9 0.0	-10.1 -0.2
OTHER COMPREHENSIVE INCOME FOR THE PERIOD	4.1	-4.5	3.8	-9.4	2.9	-10.3
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD	13.5	-13.4	34.6	-73.4	35.7	-72.3

Consolidated Balance Sheet

	2011 30 Sep	2010 30 Sep	2010 31 Dec
ASSETS GOODWILL OTHER INTANGIBLE ASSETS PROPERTY, PLANT AND EQUIPMENT DEFERRED TAX ASSETS OTHER FINANCIAL ASSETS	70.6 0.1 59.6 18.4 4.5	70.6 0.8 84.2 34.2 2.6	70.5 0.2 72.8 29.0 8.4
FIXED ASSETS	153.2	192.4	180.9
CURRENT INTEREST-BEARING RECEIVABLES STOCK ACCOUNTS RECEIVABLE—TRADE OTHER CURRENT RECEIVABLES CASH AND CASH EQUIVALENTS	6.0 206.8 216.6 31.9 38.9	- 236.2 219.2 41.3 21.1	24.5 192.6 234.4 27.4 33.7
CURRENT ASSETS	500.2	517.8	512.6
TOTAL ASSETS	653.4	710.2	693.5
EQUITY AND LIABILITIES EQUITY	251.6	215.9	217.0
NON-CURRENT INTEREST-BEARING LIABILITIES DEFERRED TAX LIABILITIES OTHER LONG-TERM PROVISIONS	4.6 2.5 -	5.5 2.8 0.1	4.7 2.4 -
NON-CURRENT LIABILITIES	7.1	8.4	7.1
CURRENT INTEREST-BEARING LIABILITIES ACCOUNTS PAYABLE—TRADE OTHER CURRENT LIABILITIES SHORT-TERM PROVISIONS	161.1 155.6 75.2 2.8	229.5 158.1 73.3 25.0	202.2 171.9 78.4 16.9
CURRENT LIABILITIES	394.7	485.9	469.4
TOTAL EQUITY AND LIABILITIES	653.4	710.2	693.5

Consolidated change in equity

	2011 Q3	2010 Q3	2011 Q1-Q3	2010 Q1-Q3	Rolling 12 mth.	2010 Full yr.
OPENING EQUITY	238.1	229.3	217.0	209.9	215.9	209.9
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD AFTER TAX	13.5	-13.4	34.6	-73.4	35.7	-72.3
NEW ISSUE	-	-	-	86.6	-	86.6
COST OF NEW ISSUE	-	-	-	-7.2	-	-7.2
CLOSING EQUITY	251.6	215.9	251.6	215.9	251.6	217.0

Consolidated Cash Flow Statement

	2011 Q3	2010 Q3	2011 Q1-Q3	2010 Q1-Q3	Rolling 12 mth.	2010 Full yr.
PROFIT AFTER FINANCIAL ITEMS REVERSED DEPRECIATION AND AMORTISATION OTHER NON-CASH ITEMS TAX PAID CHANGE IN WORKING CAPITAL	12.6 4.8 0.2 -1.1 0.6	-6.6 7.7 -2.6 -2.5 -8.6	43.1 15.6 4.0 -5.0 -28.4	--67.6 24.5 36.7 -6.2 -40.3	51.3 23.0 -39.3 -0.7 22.3	-59.4 31.9 -6.6 -1.9 10.4
CASH FLOW FROM OPERATING ACTIVITIES	17.1	-12.6	29.3	-52.9	56.6	-25.6
CASH FLOW FROM INVESTING ACTIVITIES	5.0	-0.6	16.3	-0.9	29.2	12.0
CASH FLOW FROM FINANCING ACTIVITIES	-18.4	14.0	-41.5	53.9	-70.0	25.4
CHANGE IN CASH AND CASH EQUIVALENTS	3.7	0.8	4.1	0.1	15.8	11.8
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD CASH FLOW AFTER INVESTING ACTIVITIES FINANCING ACTIVITIES EXCHANGE RATE DIFFERENCE IN CASH AND CASH EQUIVALENTS	34.3 22.1 -18.4 0.9	21.5 -13.2 14.0 -1.2	33.7 45.6 -41.5 1.1	24.4 -53.8 53.9 -3.4	21.1 85.8 -70.0 2.0	24.4 -13.6 25.4 -2.5
CASH AND CASH EQUIVALENTS AT END OF PERIOD	38.9	21.1	38.9	21.1	38.9	33.7
UN-UTILISED CREDITS	41.2	11.6	41.2	11.6	41.2	33.3
AVAILABLE CASH AND CASH EQUIVALENTS	80.1	32.7	80.1	32.7	80.1	67.0

Consolidated six-year summary

	Rolling 12 mth.	2010	2009	2008	2007	2006
SALES	1,278.0	1,210.7	1,200.0	1,709.5	1,743.8	1,741.5
GROSS MARGIN	10.3%	5.0%	2.2%	7.2%	12.9%	11.9%
OPERATING MARGIN	4.8%	-4.0%	-7.6%	-0.2%	6.4%	5.9%
PROFIT MARGIN	4.0%	-4.9%	-8.2%	-0.8%	6.0%	5.5%
CASH FLOW AFTER INVESTING ACTIVITIES	85.8	-13.6	23.9	25.1	-0.5	24.8
EQUITY PER SHARE, SEK	8.71	7.52	21.81	30.64	34.02	27.86
CASH FLOW PER SHARE, SEK	2.97	-0.56	1.52	1.59	-0.03	1.57
RETURN ON OPERATING CAPITAL	15.4%	-12.1%	-18.8%	-0.7%	21.4%	22.5%
RETURN ON EQUITY	14.0%	-29.1%	-32.1%	-4.2%	26.3%	29.0%
EQUITY TO ASSETS RATIO	38.5%	31.3%	27.9%	31.1%	34.5%	30.2%
AVERAGE NUMBER OF EMPLOYEES	965	1,000	977	1,201	1,171	1,127
SALES PER EMPLOYEE, SEK 000	1,324	1,211	1,228	1,423	1,489	1,545

Consolidated quarterly summary

	2011 Q3	2011 Q2	2011 Q1	2010 Q4	2010 Q3	2010 Q2	2010 Q1	2009 Q4
SALES	272.5	326.8	311.8	366.8	271.9	298.6	273.5	291.5
GROSS MARGIN	11.2%	11.6%	10.0%	8.8%	6.9%	9.9%	-7.4%	7.8%
OPERATING MARGIN	4.9%	7.2%	3.9%	3.3%	-1.5%	-1.3%	-19.2%	-0.9%
PROFIT MARGIN	4.6%	6.5%	3.0%	2.2%	-2.4%	-2.0%	-20.2%	-1.5%
CASH FLOW AFTER INVESTING ACTIVITIES	22.1	14.5	9.0	40.2	-13.2	-54.9	14.3	14.2
EQUITY PER SHARE, SEK	8.71	8.25	7.71	7.52	7.48	7.94	16.97	21.81
CASH FLOW PER SHARE, SEK	0.77	0.50	0.31	1.39	-0.46	-2.32	0.91	0.90
EQUITY TO ASSETS RATIO	38.5%	35.3%	32.7%	31.3%	30.4%	31.4%	22.4%	27.9%
AVERAGE NUMBER OF EMPLOYEES	949	966	938	1,008	1,006	987	997	956
SALES PER EMPLOYEE, SEK 000	287	338	332	364	270	303	274	305

NOTE AB (publ) • Corp. ID no. 556408-8770 • Box 711 • 182 17 Danderyd • Sweden • Tel. +46 (0)8 568 99000 • www.note.eu 10

Parent Company Income Statement

	2011 Q3	2010 Q3	2011 Q1-Q3	2010 Q1-Q3	Rolling 12 mth.	2010 Full yr.
NET SALES COST OF GOODS SOLD	10.0 -7.1	9.5 -7.6	25.9 -20.2	30.3 -25.7	36.1 -24.4	40.5 -29.9
GROSS PROFIT	2.9	1.9	5.7	4.6	11.7	10.6
SALES COSTS ADMINISTRATIVE COSTS OTHER OPERATING INCOME/COSTS	-1.0 -2.2 0.0	-0.2 -4.8 -0.4	-3.8 -8.6 0.0	-6.4 -11.5 0.0	-5.4 -11.1 0.1	-8.0 -14.0 0.1
OPERATING PROFIT	-0.3	-3.5	-6.7	-13.3	-4.7	-11.3
FINANCIAL INCOME/EXPENSE	2.5	-63.6	0.7	-66.7	-28.0	-95.4
PROFIT AFTER NET FINANCIAL ITEMS	2.2	-67.1	-6.0	-80.0	-32.7	-106.7
APPROPRIATIONS	-	-	-	-	-	-
PROFIT BEFORE TAX	2.2	-67.1	-6.0	-80.0	-32.7	-106.7
INCOME TAX	-0.5	2.4	1.6	5.7	1.9	6.0
PROFIT AFTER TAX	1.7	-64.7	-4.4	-74.3	-30.8	-100.7

Parent Company Balance Sheet

	2011 30 Sep	2010 30 Sep	2010 31 Dec
ASSETS INTANGIBLE ASSETS PROPERTY, PLANT AND EQUIPMENT DEFERRED TAX ASSETS FINANCIAL NON-CURRENT ASSETS NON-CURRENT ASSETS	- 0.0 9.5 340.0 349.5	0.6 1.6 8.2 350.1 360.5	- 0.1 7.9 322.9 330.9
CURRENT INTEREST-BEARING RECEIVABLES RECEIVABLES FROM GROUP COMPANIES & JOINT VENTURES OTHER CURRENT RECEIVABLES CASH AND CASH EQUIVALENTS	6.0 17.0 3.4 18.8	- 58.5 2.7 1.9	24.5 100.3 3.5 11.8
CURRENT ASSETS	45.2	63.1	140.1
TOTAL ASSETS	394.7	423.6	471.0

EQUITY AND LIABILITIES EQUITY	232.9	262.2	237.3
UNTAXED RESERVES	-	-	-
LIABILITIES TO GROUP COMPANIES & JOINT VENTURES NON-CURRENT LIABILITIES	- -	6.8 6.8	- -
LIABILITIES TO CREDIT INSTITUTIONS LIABILITIES TO GROUP COMPANIES & JOINT VENTURES OTHER CURRENT LIABILITIES & PROVISIONS	12.6 138.3 10.9	69.0 71.8 13.8	20.9 199.9 12.9
CURRENT LIABILITIES	161.8	154.6	233.7