NOTE — Interim / Quarterly Report 2018

Apr 26, 2018

Interim Report January–March 2018

Interim Report Q1

Financial performance in January–March

• Sales increased by 11% to SEK 308.0 (277.1) million.
• Operating profit amounted to SEK 16.8 (30.4) million, and adjusted for non-recurring items in the first quarter of the previous year of SEK +15.7 million net, operating profit increased to SEK 16.8 (14.7) million.
• Operating margin was 5.5% (11.0%). Adjusted for non-recurring items in the first quarter of the previous year, operating margin expanded by 0.2 percentage points to 5.5% (5.3%).
• Profit after financial items was SEK 15.0 (29.1) million.
• Profit after tax of SEK 12.3 (26.9) million, corresponding to SEK 0.43 (0.93) per share.
• Cash flow after investments amounted to SEK 13.3 (77.8) million, or SEK 0.46 (2.70) per share. In the first quarter of the previous year cash flow had a positive impact of some SEK 40 million from the sales of the property in Lund.

Events in the period

NOTE–CellMark's new EMS partner

NOTE signed an agreement's with CellMark in January on the manufacture of a new sophisticated medtech product. Industrialisation and batch production will be conducted at NOTE's plant in Estonia.

CEO's comments

Focusing on profitable sales growth

NOTE is one of the most competitive electronics manufacturers in the Nordics, and a stable business partner for Swedish and international customers that need advanced EMS solutions. A clear focus on ensuring sector-leading quality and delivery precision are critical success factors, for ourselves and our customers.

Progress in the first quarter

NOTE endeavours to secure long-term customer relations and partnerships. I think that we now have the base to remain one of the highest-growth companies in our sector. We are already partnering with several leading corporations in the Nordics across a broad spectrum of industries. I see great potential in growing our business through new projects and deeper partnerships with our existing customers in the industrial and communication sectors, as well as in medtech and defence. Within segments where we already possess strong skills, we're working hard to keep broadening our customer base. Our focus is on customers and projects where we see yearly sales potential of at least SEK 10 million, and we already we have several exciting new projects in this class in defence and medtech. Our recently announced deal with CellMark is an example of the latter. Additionally, we're already part of new, high-growth application areas. The overall increasing digitalisation is driving the need for electronics, which is expanding our markets. Our skills in electronics production are a contributor here.

There is substantial interest in our broad-based industrial offering, and we continued our positive progress in the first quarter. Sales increased by 11% to SEK 308 million, and we saw growth on all domestic markets, especially Sweden. Our order books are continuing to grow, corroborating positive progress in the short term.

New in this interim report is that we are reporting sales per customer segment. The information can be found on page 10, among other things, it shows that the industrial segment is our largest with some 70% of total sales.

In terms of our earnings, the seasonally weak first quarter was consistent with our estimates. In the previous year, first quarter operating profit included positive non-recurring items of nearly SEK 16 million, mainly associated with the sale of our property in Lund, southern Sweden. Adjusted for these items, first-quarter operating profit increased by SEK 2.1 million (15%) to SEK 16.8 million. Calculated in the same way, our operating margin expanded by 0.2 percentage points to 5.5%. Viewed over the past 12 months, our return on operating capital was over 22%, just above our profitability target of 20%.

The combination of our continued growth with strained conditions on the global market for electronic components contributed to some inventory build-up in the quarter. Cash flow after investments was SEK 13.3 million, or SEK 0.46 per share.

Continued growth and improved profitability in the first quarter.

NOTE is very well prepared financially for its future. Our liquidity situation is good, and our Balance Sheet remains one of the sector's strongest with an equity to assets ratio of 46.8% and net debt of some SEK 10 million.

Future

We're working methodically from our long-term strategic plan, which includes us targeting minimum annual growth of 10%. Against this background, we have continued to invest in efficient machinery and processes in recent quarters, as well as in our skills. We recently reinforced our organisation, hiring more key individuals in several segments, such as technology, procurement and sales.

Our focus is on growth, customer satisfaction and profitability. Our order status and the activity of current customer dialogues remains high, and I think we have good potential to maintain our current positive momentum.

Per Ovrén

Sales and results of operations

Sales, January–March

NOTE sells to a large customer base, active in industrial, communication, medtech, defence and high end consumer electronics. Its customer base consists of global corporations active on the world market, as well as local enterprises whose main sales are in northern Europe. Usually, customers outsource all their electronics manufacture with one or several EMS partners. Another trend is for customers increasingly demanding manufacture of box build products.

The demand for NOTE's services continued to progress positively. Sales in the first quarter were up by 11% to SEK 308.0 (277.1) million. The effect of exchange rate fluctuations had a marginal impact. Increased sales consist of new products for established current business customers, and the progressive impact of increased volumes on new business accounts. In Western Europe, sales increased by over 14%—sales performed positively in Sweden and Finland as well as the UK. Demand was especially strong from customers in Sweden's industrial sector. Demand for electronics manufacture at the plant in Estonia, where capacity was expanded significantly last year, remained at a high level. We expect sales from our plant in China, which are to local and global customers, to increase during the year, but to date, are at approximately the same level as in the first quarter of the previous year.

NOTE endeavours to secure long-term customer relations and partnerships. NOTE entered deeper partnerships on new product generations with several customers.

NOTE has also been working intensively for some time on expanding its customer base. As a result of these marketing initiatives, NOTE secured many new customer relations. Most of these new customers are European and Asian SMEs. Several of these partnerships, which usually start with industrialisation services (service sales, prototyping and pilot series), have now resulted in batch production and higher volumes.

The above profit margin illustrates underlying protitability. The first quarter 2017 was adjusted downwards by SEK 15.7 million reflecting non-recurring items.

The 15 largest customers in sales terms represented 58% (60%) of group sales. Similar to the previous year, no single customer (group) generated more than about 10% of total sales.

At the end of the period, the group's order book, which consists of a combination of fixed orders and customer forecasts, corroborated continued positive sales performance

Results of operations, January–March

In order to keep sharpening competitiveness and create the potential for profitable sales growth, NOTE has been conducting methodical improvement work at all units for several years. This work is conducted locally at each plant and through a number of group-wide projects. Over and above initiatives to expand and develop its customer offering, NOTE's focus is on measures that improve delivery precision and quality performance, as well as cost and working capital rationalisation.

Gross margin amounted to 11.3% (11.3%) in the first quarter. Adjusted for non-recurring costs last year, gross margin was somewhat narrower than in the previous year, mainly as a result of start-up costs for new projects, and a minor change to the mix of customer assignments.

Sales and administration overheads for the period amounted to SEK 18.0 (19.9) million. Adjusted for non-recurring costs in the first quarter of last year, overheads were up by 8%, primarily as a result of additions to NOTE's organisation to lift growth. As a share of sales, overheads were 5.9% (7.2%).

Other operating expenses/income, which normally consist of revaluations of foreign currency assets and liabilities, were SEK 0.1 (19.0) million. In the first quarter of the previous year, other operating income was positively impacted by SEK 20.6 million from the property sale in Lund.

First-quarter operating profit was SEK 16.8 (30.4) million. Adjusted for the property sale and other non-recurring costs in the first quarter of the previous year, operating profit increased by SEK 2.1 million (15%) to SEK 16.8 (14.7) million. Computed in the same way, operating margin widened by 0.2 percentage points to 5.5% (5.3%).

Net financial income/expense in the period was SEK –1.8 (–1.3) million.

Profit after financial items was SEK 15.0 (29.1) million, corresponding to a profit margin of 4.9% (10.5%).

Profit after tax was SEK 12.3 (26.9) million, or SEK 0.43 (0.93) per share. The tax expense for the period corresponded to 18% (8%) of profit before tax.

Cash flow and financial position

Cash flow

Competing successfully in the high mix market segment sets demanding standards on flexibility in manufacture, the effective supply of materials and the capability to deliver custom logistics solutions. Accordingly, NOTE faces a major challenge in continuously improving its business methods and internal processes in these segments.

The combination of a strained component market with high expected continued sales growth were contributors to increased inventories. Capital tied-up in inventories, including supplier advances for materials, increased by 19% on year-end, and at the end of the period, were 25% higher than the corresponding point of the previous year.

NOTE works continuously to monitor credit risk and limit the number of outstanding days of credit. At the end of the first quarter, accounts receivable—trade, which have reduced since the previous year-end for seasonal reasons, were up by 9% on the corresponding point of the previous year. The implementation of improved procedures, especially in the Chinese operation, helped reduce the number of days of credit compared to the previous year.

Accounts payable—trade are mainly sourced electronic components and other production materials. NOTE is working actively to keep developing a partnership model for suppliers, which involves changes including concentrating sourcing on fewer, quality-assured suppliers. This simultaneously helps rationalise the utilisation of working capital. Accounts payable—trade increased by 23% in the quarter, and were 17% higher than the corresponding period of the previous year.

Equity to assets ratio

Cash flow after investments

SEK+13.3m

Cash flow after investments was SEK 13.3 (77.8) million for the period, or SEK 0.46 (2.70) per share. Cash flow in the first quarter of the previous year had a positive impact of some SEK 40 million from the sale of the property in Lund.

Equity to assets ratio

According to NOTE's externally communicated financial targets, the equity to assets ratio should not fall below 30%. At the end of the first quarter, the equity to assets ratio was 46.8% (45.2%). The proposed share dividend of SEK 1.00 per share, equivalent to SEK 28.9 million, would reduce the equity to assets ratio by some 4 percentage points.

Liquidity and investments

Liquidity and net debt

NOTE puts a sharp focus on measures that improve the group's liquidity and cash flow. Efficient management of working capital and well-considered logistics setups are a high priority. NOTE also sold its industrial premises in Lund in the first quarter of the previous year, and signed a multi-year lease contract with NOTE Lund as tenant.

The group's available cash and cash equivalents, including un-utilised overdraft facilities, were some SEK 159 (198) million at the end of the period. Factored accounts receivable—trade were approximately SEK 173 (118) million. Net debt was SEK 10 (–18) million at the end of the period.

Investments

Capital expenditure in fixed assets was SEK 4.6 (2.5) million, or 1.5% (0.9%) of sales. Investments primarily consisted of projects to increase efficiency and quality.

Plan depreciation and amortisation increased somewhat to SEK 4.0 (3.7) million.

Parent company

The parent company, NOTE AB (publ), is primarily focused on the management, coordination and development of the group. Revenue for the period was SEK 9.2 (10.1) million, and mainly related to intra-group services. Profit for the first quarter last year was positively impacted by the property sale in Lund. Net financial income/expense last year also included SEK 2.3 million of dividends received from subsidiaries. No dividend was received in the first quarter this year. Profit after tax was SEK 0.1 (32.8) million.

Transactions with related parties

There were no transactions with related parties in the first quarter.

Significant operational risks

NOTE is one of the leading northern European EMS partners. It has especially strong market positioning in the high mix market segment, i.e. for products that require high technology competence and flexibility. NOTE produces PCBAs, subassemblies and box build products. The customer offering covers complete product lifecycles, from design to after-sales.

NOTE's business model, which is designed to increase sales growth combined with limited overheads and investment costs in high-cost countries, is a way to reduce the risks of operations. For a more detailed review of the group's operational and financial risks, refer to the Risks section on page 13, the Report of the Directors on page 40, as well as note 24, Financial risks and finance policy, on page 57–58 of NOTE's Annual Report for 2017.

NOTE's operations set relatively high standards on working capital financing. Accordingly, it puts a sharp focus on managing its liquidity risk.

Accounting and valuation principles

NOTE observes International Financial Reporting Standards (IFRS) as endorsed by the European Union. Significant accounting and valuation principles are stated on pages 48–50 of the Annual Report for 2017. 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 RFR2.

NOTE started to apply IFRS 9 "Financial Instruments" and IFRS 15 "Revenue from Contracts with Customers" effective 1 January 2018.

IFRS 9 introduces a new method for measuring bad debt provision needs. As in previous years, NOTE has provisioned on the basis of a case-by-case assessment of credit risk for each customer. Based on measurement of historical data, the credit risk provision was increased by some SEK 6 million. This amount was taken against consolidated equity, as IFRS 9 was adopted on 1 January 2018. Otherwise, IFRS 9 has no material effect on the consolidated financial statements.

NOTE has conducted an analysis of the implementation of IFRS 15 and judges that the Standard has no material effect on the consolidated financial statements.

The IASB published a new standard on leases in January 2016, IFRS 16 Leases, which will replace IAS 17 Leases and the associated SIC and IFRIC interpretation statements. This standard requires that assets and liabilities attributable to all lease arrangements, with certain exceptions, are recognized in the

Balance Sheet. This standard applies to financial years beginning 1 January 2019. Prospective adoption is permitted.

A project to quantify the effects on the group of implementing IFRS 16 on its financial statements is ongoing. This process will continue in 2018. For a view of the scope of the group's lease commitments, see note 7 Operating leases on page 51 of the Annual Report for 2017.

Earnings per share are reported in line with IAS 33 Earnings per share. Reported numbers for 2017 have been adjusted for compliance with current reporting standard.

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.

Audit review

As in previous years, the Interim Report for the first quarter has not been subject to review by the company's auditor.

Per Ovrén CEO and President

Kista, Sweden, 25 April 2018

Consolidated six-year summary

SEK million	Rolling 12 mth.	2017	2016	2015	2014	2013
Net sales	1,206.6	1,175.7	1,098.1	1,121.5	964.0	907.0
Gross margin	11.9%	11.9%	12.0%	10.9%	10.6%	8.0%
Operating margin	6.6%	7.9%	5.5%	4.0%	3.3%	1.0%
Profit margin	6.2%	7.6%	5.0%	3.5%	3.0%	0.1%
Cash flow after investing activities	5.2	69.7	40.9	5.2	2.5	–2.0
Cash flow per share, SEK	0.18	2.41	1.42	0.18	0.09	–0.07
Equity per share, SEK	13.33	12.79	11.01	9.94	9.36	8.25
Return on operating capital	22.1%	24.2%	16.1%	12.9%	10.1%	3.1%
Return on equity	15.8%	21.0%	14.9%	12.4%	9.7%	0.3%
Equity to assets ratio	46.8%	48.8%	45.8%	43.3%	44.1%	44.0%
Average number of employees	927	912	987	940	893	847
Net sales per employee, SEK 000	1,302	1,289	1,113	1,193	1,080	1,071

Consolidated quarterly summary

SEK million	2018 Q1	2017 Q4	2017 Q3	2017 Q2	2017 Q1
Net sales	308.0	325.0	265.2	308.4	277.1
Gross margin	11.3%	12.3%	12.3%	11.8%	11.3%
Operating margin	5.5%	7.0%	7.6%	6.6%	11.0%
Profit margin	4.9%	6.6%	7.1%	6.3%	10.5%
Cash flow after investing activities	13.3	1.8	–11.2	1.3	77.8
Cash flow per share, SEK	0.46	0.06	–0.39	0.05	2.70
Equity per share, SEK	13.33	12.79	12.00	11.54	11.91
Equity to assets ratio	46.8%	48.8%	48.6%	46.4%	45.2%
Average number of employees	927	952	943	886	870
Net sales per employee, SEK 000	332	341	281	348	319

Financial definitions

Average number of employees	Average number of employees calculated on the basis of hours worked.
Cash flow per share	Cash flow after investments divided by the number of shares at end of the period (before dilution).
Equity per share	Equity divided by the number of shares at end of the period (before dilution).
Equity to assets ratio	Equity as a percentage of total assets.
Gross profit margin	Gross profit as a percentage of net sales.
Net debt	Interest-bearing liabilities and provisions less cash and cash equivalents.
Net sales per employee	Net sales divided by the average number of full-time employees.
Operating capital	Total assets less cash and cash equivalents, non-interest bearing liabilities and provisions.
Operating margin	Operating profit as a percentage of net sales.
Profit margin	Profit after financial items as a percentage of net sales.
Return on equity	Net profit as a percentage of the average equity for the most recent twelve-month period.
Return on operating capital	Operating profit as a percentage of the average operating capital for the most recent twelve-month period.

Consolidated Income Statement

SEK million	2018 Q1	2017 Q1	Rolling 12 mth.	2017 full year
Net sales	308.0	277.1	1,206.6	1,175.7
Cost of goods and services sold	–273.3	–245.8	–1,062.9	–1,035.4
Gross profit	34.7	31.3	143.7	140.3
Selling expenses	–10.5	–13.8	–41.2	–44.5
Administrative expenses	–7.5	–6.1	–30.0	–28.6
Other operating income/expenses	0.1	19.0	7.3	26.2
Operating profit	16.8	30.4	79.8	93.4
Net financial income/expenses	–1.8	–1.3	–5.1	–4.6
Profit after financial items	15.0	29.1	74.7	88.8
Income tax	–2.7	–2.2	–17.2	–16.7
Profit after tax	12.3	26.9	57.5	72.1

Consolidated Statement of Other Comprehensive Income

	2018	2017	Rolling	2017
SEK million	Q1	Q1	12 mth.	full year
Profit after tax	12.3	26.9	57.5	72.1
Other comprehensive income
Items that can be subsequently reversed in the income statement:
Exchange rate differences	8.1	–1.0	8.0	–1.1
Cash flow hedges	0.1	0.0	0.0	–0.1
Tax on hedges and exchange rate difference	–0.2	0.0	–0.2	0.0
Total other comprehensive income after tax	8.0	–1.0	7.8	–1.2
Comprehensive income after tax	20.3	25.9	65.3	70.9

Earnings per share

	2018	2017	Rolling	2017
	Q1	Q1	12 mth.	full year
Number of shares at end of period (000)	28,873	28,873	28,873	28,873
Weighted average number of shares (000)*	28,873	28,873	28,873	28,873
Weighted average number of shares (000)**	28,959	28,873	28,908	28,899
Earnings per share, SEK*	0.43	0.93	1.99	2.50
Earnings per share, SEK**	0.42	0.93	1.99	2.49

* Before dilution ** After dilution

Consolidated Balance Sheet

SEK million	2018 31 March	2017 31 March	2017 31 Dec.
Assets
Goodwill	70.5	70.3	70.2
Other intangible assets	9.2	10.0	9.6
Property, plant and equipment	67.5	53.4	64.4
Deferred tax assets	2.7	3.0	1.0
Other financial assets	1.1	1.6	1.1
Total non-current assets	151.0	138.3	146.3
Inventories	286.4	229.3	239.5
Accounts receivable—trade	256.0	234.3	261.8
Other current receivables	26.7	16.8	21.1
Cash and bank balances	102.3	142.5	87.2
Total current assets	671.4	622.9	609.6
TOTAL ASSETS	822.4	761.2	755.9
Equity and liabilities
Equity	384.8	343.9	369.2
Liabilities
Long-term interest-bearing liabilities	12.6	6.2	12.3
Deferred tax liabilities	1.8	1.4	1.7
Total non-current liabilities	14.4	7.6	14.0
Current interest-bearing liabilities	99.7	118.8	97.8
Accounts payable—trade	239.4	204.5	195.0
Other current liabilities	84.1	86.4	79.9
Total current liabilities	423.2	409.7	372.7
TOTAL EQUITY AND LIABILITIES	822.4	761.2	755.9

Consolidated Change in Equity

SEK million	2018 Q1	2017 Q1	Rolling 12 mth.	2017 full year
Opening equity	369.2	318.0	343.9	318.0
Effect of change in accounting principle	–4.7	–	–4.7	–
Total	364.5	318.0	339.2	318.0
Comprehensive income after tax	20.3	25.9	65.3	70.9
Payment warrants	–	–	0.5	0.5
Dividend	–	–	–20.2	–20.2
Closing equity	384.8	343.9	384.8	369.2

Consolidated Cash Flow Statement

SEK million	2018 Q1	2017 Q1	Rolling 12 mth.	2017 full year
Operating activities
Profit after financial items	15.0	29.1	74.7	88.8
Reversed depreciation and amortisation	4.0	3.7	16.4	16.1
Other non-cash items	0.3	–17.4	–2.5	–20.2
Tax paid	–5.5	–1.2	–16.9	–12.6
Change in working capital	3.2	22.2	–51.4	–32.4
Cash flow from operating activities	17.0	36.4	20.3	39.7
Cash flow from investing activities	–3.7	41.4	–15.1	30.0
Cash flow from financing activities	–0.7	–6.8	–47.7	–53.8
Change in cash and cash equivalents	12.6	71.0	–42.5	15.9
Cash and cash equivalents
At beginning of period	87.2	71.6	142.5	71.6
Cash flow after investing activities	13.3	77.8	5.2	69.7
Cash flow from financing activities	–0.7	–6.8	–47.7	–53.8
Exchange rate difference in cash and cash equivalents	2.5	–0.1	2.3	–0.3
Cash and cash equivalents at end of period	102.3	142.5	102.3	87.2
Un-utilised credits	56.3	55.5	56.3	51.8
Available cash and cash equivalents	158.6	198.0	158.6	139.0

Operating segments

NOTE's operating segment Western Europe consist of units located in geographical regions with high industrial activity and innovation standards in Sweden, Finland and the UK. These units provide advanced production technology services in close collaboration with customers, such as component selection, developing test equipment, prototyping and batch production.

traditions of production and high competence levels. In addition to development-oriented services, these units also offer costefficient volume production of PCBAs and box build products.

Intra-Group are group-wide business support functions in the parent company and for the sourcing operations in NOTE Components.

Operating segment Rest of World, located in Estonia and China, are close to large end markets and in regions with strong

SEK million	2018 Q1	2017 Q1	Rolling 12 mth.	2017 full year
WESTERN EUROPE
External net sales	184.7	161.5	694.5	671.3
Internal net sales	2.6	1.3	11.6	10.3
Operating profit	11.1	8.7	58.7	56.3
Operating margin	5.9%	5.3%	8.3%	8.3%
Inventories	147.9	120.7	147.9	129.4
External accounts receivable—trade	162.2	126.0	162.2	158.9
Average number of employees	307	275	292	287
REST OF WORLD
External net sales	123.3	115.6	512.1	504.4
Internal net sales	17.9	24.9	67.3	74.3
Operating profit	5.9	5.5	25.1	24.7
Operating margin	4.2%	3.9%	4.3%	4.3%
Inventories	138.5	108.6	138.5	110.1
External accounts receivable—trade	93.3	107.7	93.3	102.5
Average number of employees	600	576	616	606
INTRA-GROUP
Internal net sales	–20.5	–26.2	–78.9	–84.6
Operating profit	–0.2	16.2	–4.0	12.4
External accounts receivable—trade	0.5	0.6	0.5	0.4
Average number of employees	20	19	19	19

Sales per customer segment

SEK million	2018 Q1	2017 Q1	Rolling 12 mth.	2017 full year
WESTERN EUROPE
Industrial	133.1	100.3	476.7	443.9
Communication	16.5	21.5	72.2	77.2
Medtech	20.5	28.0	102.7	110.2
Defence	14.5	11.0	40.7	37.2
High end consumer	0.1	0.7	2.2	2.8
Total external sales	184.7	161.5	694.5	671.3
REST OF WORLD
Industrial	82.5	78.9	333.3	329.7
Communication	32.5	31.3	149.9	148.7
Medtech	0.4	0.4	1.1	1.1
Defence	0.0	0.0	0.0	0.0
High end consumer	7.9	5.0	27.8	24.9
Total external sales	123.3	115.6	512.1	504.4
TOTAL
Industrial	215.6	179.2	810.0	773.6
Communication	49.0	52.8	222.1	225.9
Medtech	20.9	28.4	103.8	111.3
Defence	14.5	11.0	40.7	37.2
High end consumer	8.0	5.7	30.0	27.7
Total external sales	308.0	277.1	1,206.6	1,175.7

Parent Company Income Statement

SEK million	2018 Q1	2017 Q1	Rolling 12 mth.	2017 full year
Net sales	9,2	10,1	33,9	34,8
Cost of services sold	–4,0	–5,0	–15,6	–16,6
Gross profit	5,2	5,1	18,3	18,2
Selling expenses	–2,6	–4,8	–14,8	–17,0
Administrative expenses	–2,7	–3,0	–11,5	–11,8
Other operating income/expenses	0,3	–2,4	2,4	–0,3
Operating profit	0,2	–5,1	–5,6	–10,9
Net financial income/expenses	–0,1	37,9	31,9	69,9
Profit after financial items	0,1	32,8	26,3	59,0
Appropriations	–	–	–	–
Profit before tax	0,1	32,8	26,3	59,0
Income tax	–	–	–4,7	–4,7
Profit after tax	0,1	32,8	21,6	54,3

Parent Company Statement of Other Comprehensive Income

SEK million	2018 Q1	2017 Q1	Rolling 12 mth.	2017 full year
Profit after tax	0,1	32,8	21,6	54,3
Other comprehensive income
Items that can be subsequently reversed in the income statement:	–	-	–	–
Total other comprehensive income	–	–	–	–
Comprehensive income after tax	0,1	32,8	21,6	54,3

Parent Company Balance Sheet

SEK million	2018 31 March	2017 31 March	2017 31 Dec.
Assets
Intangible assets	1.0	1.3	1.1
Property, plant and equipment	0.4	0.2	0.4
Long-term receivables from group companies	5.1	4.7	4.9
Financial non-current assets	221.4	221.4	221.4
Total non-current assets	227.9	227.6	227.8
Receivables from group companies	61.7	27.2	66.1
Other current receivables	8.4	1.9	3.3
Cash and bank balances	56.6	97.2	46.9
Total current assets	126.7	126.3	116.3
TOTAL ASSETS	354.6	353.9	344.1
Equity and liabilities
Equity	249.6	248.2	249.5
Liabilities
Liabilities to group companies	93.2	85.8	81.3
Other current liabilities and provisions	11.8	19.9	13.3
Total current liabilities	105.0	105.7	94.6
TOTAL EQUITY AND LIABILITIES	354.6	353.9	344.1

Parent Company Change in Equity

SEK million	2018 Q1	2017 Q1	Rolling 12 mth.	2017 full year
Opening equity	249.5	215.4	248.2	215.4
Comprehensive income after tax	0.1	32.8	21.6	54.3
Dividend	–	–	–20.2	–20.2
Closing equity	249.6	248.2	249.6	249.5

NOTE produces PCBAs, subassemblies, and increasingly box build products. The products are embedded in complex systems used in applications including electronic control, surveillance and security.

The customers are active in medtech, defence, industrial, communication and high end consumer electronics. Primarily, the customer base consists of large corporations operating on the global market, but also businesses whose main sales are in northern Europe.

The business model is based on delivering advanced manufacturing services, tailored logistics solutions as well as value-added consulting services for the best total cost. The customer offering covers complete product lifecycles from design to after-sales.

In Western Europe, NOTE has plants located in geographical regions with high industrial activity and innovation capabilities. At these plants, NOTE provides sophisticated production technology services in close partnership

with customers, such as component selection, developing test equipment, prototyping and batch production.

NOTE's plants in Estonia and China are close to major final markets, and in regions with strong traditions of production and high skills levels. Over and above development-oriented services, cost-efficient batch production of PCBAs and box build products are provided.

NOTE AB (publ) Corporate ID no. 556408-8770

Calendar

Interim Report, Jan—Jun 16 Jul 2018 Interim Report, Jan—Sep 18 Oct 2018

Ordering financial information

Financial and other relevant information can be ordered from NOTE. Out of consideration for the environment, a subscription service is readily available from NOTE's website. Website: www.note.eu E-mail: info@note.eu Tel: + 46 (0)8 568 99000

Investor Relations contact

Henrik Nygren Chief Financial Officer Tel: +46 (0)70 977 0686 E-mail: henrik.nygren@note.eu

NOTE AB (publ) Borgarfjordsgatan 7 164 40 Kista Sweden

NOTE Components AB Borgarfjordsgatan 7 164 40 Kista Sweden

NOTE Hyvinkää Oy Avainkierto 3 05840 Hyvinkää Finland

NOTE Lund AB Maskinvägen 3 227 30 Lund Sweden

NOTE Norrtelje AB Vilhelm Mobergs gata 18 761 46 Norrtälje Sweden

NOTE Pärnu OÜ

Laki 2 80010 Pärnu Estonia

NOTE Torsby AB Inova Park 685 29 Torsby Sweden

NOTE UK Ltd

Stroudwater Business Park Brunel Way Stonehouse GL10 3SX Gloucestershire UK

NOTE Electronics (Dongguan) Co Ltd No. 6 Lin Dong 3 Road Lincun Industrial Center Tangxia 523710 Dongguan Guangdong Province China

www.note.eu

info@note.eu