NOTE — Interim / Quarterly Report 2019

Apr 25, 2019

Interim Report January–March 2019

Interim Report Q1

Financial performance January–March

• Sales increased with 32% to SEK 405 (308) million.
• Operating profit increased with 58% to SEK 27 (17) million.
• Operating margin expanded by 1.1 percentage points to 6.6% (5.5%).
• Profit after financial items increased by 64% to SEK 25 (15) million.
• Profit after tax improved with 64% to SEK 20 (12) million, corresponding to SEK 0.70 (0.43) per share.
• Cash flow after investments amounted to SEK 2 (13) million, or SEK 0.06 (0.46) per share.

Events in the period

Increased partnership with Sievers IMA

The Swedish company Sievers IMA, who develops and launches advanced equipment in the telecom sector, has chosen NOTE as manufacturing partner also for batch production for their 5Gproducts. NOTE has been supplying industrialisation services in Sweden and the batch production is planned to be conducted at NOTE's plant in China.

EGM–new composition of the Board

At the EGM in January, Anna Belfrage, Kaj Falkenlund, Claes Mellgren and Charlotte Stjerngren were elected new members of the Board. At the same time, Johannes Lind-Widestam left the board, which subsequently consists of seven members elected by the general meeting with Johan Hagberg as chairman. Furthermore, a decision was made on a three-year incentive program based on 400,000 warrants directed to the company's President and CEO.

Events after the end of the period

Extensive cooperation initiated with DeLaval

NOTE and DeLaval have established a complete supply chain for electronics manufacturing. In Sweden, industrialisation services are supplied by NOTE Norrtelje. NOTE's plants in Pärnu, Estonia and Tangxia, China will supply both industrialisation services and PCBA batch production. The batch production is currently ramping up. The prerequisites for DeLaval developing into one of NOTE's most important customers are good.

New cooperation established with Micropower Group

NOTE has started a cooperation with the Swedish company Micropower, who manufactures products for electric power supply. The company is active on a growing market with high quality demands. Batch production has started at NOTE's plants in Lund, Sweden and Pärnu, Estonia. The expected annual sales is estimated to about SEK 20 million.

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. Every day, we take responsibility for manufacturing functioncritical products that are usually part of larger systems within the customer's core business. Our focus is on ensuring sectorleading quality, and delivery precision is a critical success factor, for ourselves and our customers.

We've been pursuing a clear growth agenda for several years now, with the express goal of increasing our market shares and achieving minimum stable growth of 10% per year. To succeed, we're working methodically from a secure and industrially diverse offering to expand our business with existing customers and actively attract new business customers in technology and market segments where we're already strong.

We also have the ambition of executing carefully selected acquisitions and production takeovers. We consolidated our positioning on the UK market in the fourth quarter last year by acquiring Speedboard Assembly Services of Windsor.

Progress in the first quarter

We started the year really well—our progress in the first quarter set new records. Sales were up by 32% to SEK 405 million. Recent acquisition Speedboard Assembly Services provided nearly half of the growth. Accordingly, underlying organic growth in our other plants was around 16%, however the impact of exchange rate fluctuations were positive and just below 4%. We experienced continued healthy demand on all domestic markets, especially in Western Europe. Adjusted for Speedboard, our growth in Western Europe was 17%. Sales also progressed strongly at our other plants, not least in China.

Our business model is founded on long-term customer relationships and partnerships. Our customer base is diverse, and we already partner with several of the Nordic leaders across a broad spectrum of sectors. Our organic sales growth should be viewed against a background of successfully intensifying our partnerships with several established major customers within industry, communication, defence and medtech. We have also been winning a large number of new accounts over an extended period, in traditional industries and new, high-growth application segments. Batch production has now started to gather momentum on several of these partnerships, for example with Plejd in smart lighting and Charge Amps, which develops charging solutions for electric vehicles.

Overall, sales in the first quarter were in line with our estimates. However, we had previously expected to begin large-scale batch shipments in the defence segment as early as the first quarter. But we now think these shipments will gather pace later this year.

We also performed strongly in earnings terms. Mainly because of growth, continued stable progress of costs and the robust performance of our Western European plants, operating profit was up by 58% to SEK 27 million. We expanded our operating margin by 1.1 percentage points to 6.6%, which is pleasing because the

The year has started well, with 32% growth and operating profit up by 58%.

first quarter is normally seasonally weaker than others. Within our improvement work, based on the experiences of the recently successfully completed restructuring programme at our Swedish plants, we launched similar programmes at two of our international plants in the year.

Centring on the customer, the aim is to streamline internal processes and working methods, and utilise best practice that sharpens our competitiveness further.

The combination of our high growth with a still-strained position on the global market for electronic components obviously caused some inventory build-up in the quarter. Accordingly, cash flow after investments for the period was limited to SEK 2 million.

Financially, NOTE is very well prepared for its future. Our liquidity position is good, and our Balance Sheet remains one of the sector's strongest with an equity to assets ratio of some 37%, restated to conform with the recently adopted IFRS 16 Standard.

Future

Our focus is on growth, customer satisfaction and profitability. Alongside our customers, we're monitoring market progress closely. Even if global economic uncertainty has increased in several contexts, the dialogue at the customer level remains positive. We have several major and exciting customer projects in ramp-up, and for comparable entities our order book expanded to a record level just above 20% higher than last year. Accordingly, we see good potential to maintain our positive progress.

Johannes Lind-Widestam

Sales and results of operations

Sales, January–March

NOTE sells to a large customer base, essentially active across industry, 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 primary sales are in northern Europe. Usually, customers outsource all their electronics manufacture to one or several EMS partners. Another clear trend is customers increasingly demanding box build.

The demand for NOTE's services continued to make positive progress in the first quarter. Sales rose by 32% to SEK 405 (308) million. The impact of exchange rate fluctuations was positive at just below 4%. Approximately half of growth (16%) was from extra sales from UK company Speedboard Assembly Services, which was acquired in the fourth quarter of the previous year.

Demand progressed positively on all domestic markets. Adjusted for Speedboard's sales, sales in Western Europe increased by 17%. Our plants in Finland and Sweden had especially high demand, mainly from customers within industry, medtech and communication. Sales from our plant in China, which are to local and global customers, progress robustly, with growth of 26%.

The demand for electronics production at our plant in Estonia, whose customers are mainly in northern Europe, also progressed positively, with growth of 8%.

NOTE endeavours to secure long-term customer relationships and partnerships. Sales growth in the period consisted partly of intensified partnerships on new product generations in NOTE's already-strong customer base, and partly of batch production that has commenced for several new business customers secured recently.

Most of these new customers are SMEs in Europe and Asia. 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 operating margin above illustrates underlying profitability for 2018- 2019. Operating profit for the third-quarter has been restated by SEK +7 million due to non-recurring costs.

NOTE's customer base is diverse, and the 15 largest customers in sales terms represented 49% (58) of group sales. No single customer (group) represented more than about 7% of total sales.

The group's order book, which consists of a combination of fixed orders and customer forecasts, indicated continued positive sales performance at the end of the period.

Results of operations, January–March

In order to keep improving competitiveness and create the potential for profitable sales growth, NOTE has been conducting methodical improvement work at all plants 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, and on cost and working capital rationalisation.

Mainly as a consequence of increased sales and stable margins on current customer assignments, gross margin expanded by 0.8 percentage points to 12.1% (11.3).

Sales and administration overheads for the period increased, mainly as a result of the acquisition of Speedboard, and were SEK 21 (18) million. As a share of sales, overheads were 5.2% (5.9)

Other operating expenses/income, which normally consist of the revaluation of assets and liabilities denominated in foreign currencies, were SEK -1 (0) million.

Operating profit in the first quarter increased by 58% to SEK 27 (17) million, and NOTE's operating margin widened by 1.1 percentage points to 6.6% (5.5).

Net financial income/expense for the period was largely unchanged at SEK -2 (-2) million.

Profit after financial items increased by 64% to SEK 25 (15) million, corresponding to a profit margin of 6.1% (4.9).

Profit after tax increased by 64% to SEK 20 (12) million, or SEK 0.70 (0.43) per share. The tax expense for the period corresponded to 18% (18) 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 manufacturing and logistics solutions. Accordingly, NOTE puts a sharp focus on continuously improving its business methods and internal processes in these segments.

The global market for electronic components is often considered cyclical. In recent years, the component market has been under strain in terms of availability and lead-times. In combination with the healthy sales growth still expected, this contributed to increasing inventories. Capital tied-up in inventories, including advance payments for materials, increased by 18% on year-end. The increase on the corresponding point of the previous year was 52%, with the acquisition of Speedboard representing some 21%.

NOTE continuously monitors credit risks and limiting the outstanding number of days of credit. Accounts receivable—trade were 32% higher at the end of the first quarter than at the corresponding point of the previous year. Accordingly, the number of outstanding days of credit were comparable to the previous year.

Accounts payable—trade mainly consist of sourcing of electronic components and other production materials. NOTE is working actively to keep developing a partnership model for suppliers, which involves concentrating sourcing on fewer, quality-assured suppliers. This simultaneously contributes positively to rationalising the utilisation of working capital. Accounts payable increased by 17% in the quarter, and were 34% higher than at the corresponding point of the previous year.

Equity to assets ratio

Cash flow after investments

An increased need for working capital, the result of NOTE's growth, was a contributor to limiting first-quarter cash flow after investments to SEK 2 (13) million, or SEK 0.06 (0.46) per share.

Equity to assets ratio

According to NOTE's externally communicated financial targets, the minimum equity to assets ratio is 30 percent. The equity to assets ratio at the end of the first quarter was 36.8 percent (46.8). IFRS 16, adopted at year-end, negatively impacted the equity to assets ratio by just over two percentage points. The proposed dividend of SEK 0.70 per share, or SEK 20.2 million, would reduce the equity to assets ratio by some 2 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. The efficient management of working capital and well-considered logistics setups are high priorities.

The group's available cash and cash equivalents, including un-utilised overdraft facilities, were some SEK 126 (159) million at the end of the period. Factored accounts receivable—trade were approximately SEK 180 (173) million. Excluding financial liabilities resulting from the adoption of IFRS 16, net debt was approximately SEK 165 (10) million at the end of the period.

Investments

Capital expenditure on fixed assets was SEK 9 (5) million, corresponding to 2.1% (1.5) of sales. These investments primarily consisted of projects to increase efficiency and capacity.

Plan depreciation and amortisation in the period increased to SEK 11 (4) million, of which SEK 4 million consisted of additional amortisation, mainly of leased premises, after the adoption of IFRS 16.

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 10 (9) million, and mainly related to intra-group services. Profit after tax was SEK 5 (0) million.

Transactions with related parties

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

EGM 2019

At the EGM in January, Anna Belfrage, Kaj Falkenlund, Claes Mellgren and Charlotte Stjerngren were elected new members of the Board. At the same time, Johannes Lind-Widestam left the board, which subsequently consists of seven members elected by the general meeting with Johan Hagberg as chairman. Furthermore, a decision was made on a three-year incentive program based on 400,000 warrants directed to the company's President and CEO.

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 2018.

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 2018. 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.

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 recognised in the Balance Sheet. This standard applies to financial years beginning 1 January 2019.

NOTE has chosen the simplified transition method to IFRS 16, meaning that no adjustment will be done to the financial reporting for 2018. The property rental contracts for the group are included in the base for the calculation, while other leased equipment is excluded since the value of this equipment is regarded as non-material. For the calculation of interest on leasing debt, an interest of 1.6% per annum has been used.

Actual leasing obligations per 31 Dec 2018 amounted to approximately SEK 68 million. In line with IFRS 16, the consolidated opening balances 2019 have been adjusted, meaning that non-current assets (right of use assets) have been increased with some SEK 66 million. The financial debts have been increased with the same amount.

Earnings per share are reported in line with IAS 33 Earnings per share.

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.

Johannes Lind-Widestam CEO and President

Kista, Sweden, 24 April 2019

Consolidated six-year summary

SEK million	Rolling 12 months	2018	2017	2016	2015	2014
Net sales	1,476	1,379	1,176	1,098	1,122	964
Gross margin	12.6%	12.5%	11.9%	12.0%	10.9%	10.6%
Operating margin	6.3%	6.1%	7.9%	5.5%	4.0%	3.3%
Profit margin	6.0%	5.7%	7.6%	5.0%	3.5%	3.0%
Cash flow after investing activities	-88	-76	70	41	5	3
Cash flow per share, SEK	-3,04	-2.63	2.41	1.42	0.18	0.09
Equity per share, SEK	14.3	13.3	12.8	11.0	9.9	9.4
Return on operating capital	17.9%	17.8%	24.2%	16.1%	12.9%	10.1%
Return on equity	18.1%	17.1%	21.0%	14.9%	12.4%	9.7%
Equity to assets ratio	36.8%	39.8%	48.8%	45.8%	43.3%	44.1%
Average number of employees	1,009	980	912	987	940	893
Net sales per employee, SEK 000	1,463	1,407	1,289	1,113	1,193	1,080

Consolidated quarterly summary

SEK million	2019 Q1	2018 Q4	2018 Q3	2018 Q2	2018 Q1
Net sales	405	397	324	351	308
Gross margin	12.1%	13.2%	12.4%	12.8%	11.3%
Operating margin	6.6%	7.1%	4.8%	6.7%	5.5%
Profit margin	6.1%	6.8%	4.6%	6.2%	4.9%
Cash flow after investing activities	2	-81	9	-18	13
Cash flow per share, SEK	0.06	-2.80	0.33	-0.62	0.46
Equity per share, SEK	14.3	13.3	13,2	13.0	13.3
Equity to assets ratio	36.8%	39.8%	46.2%	44.9%	46.8%
Average number of employees	1,045	1,058	983	951	927
Net sales per employee, SEK 000	388	375	329	369	332

Financial definitions

Gross profit margin Gross profit as a percentage of net sales. Equity per share Equity divided by the number of shares at end of the period (before dilution). 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). Net sales per employee Net sales divided by the average number of full-time employees. Net debt Interest-bearing liabilities and provisions less cash and cash equivalents. Operating capital Total assets less cash and cash equivalents, non-interest bearing liabilities and provisions. 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. Operating margin Operating profit as a percentage of net sales. Equity to assets ratio Equity as a percentage of total assets. Profit margin Profit after financial items as a percentage of net sales.

Consolidated Income Statement

SEK million	2019 Q1	2018 Q1	Rolling 12 months	2018 Full year
Net sales	405	308	1,476	1,379
Cost of goods and services sold	-356	-274	-1,290	-1,207
Gross profit	49	34	186	172
Selling expenses	-12	-10	-53	-51
Administrative expenses	-9	-7	-34	-32
Other operating income/expenses	-1	-	-6	-5
Operating profit	27	17	93	84
Net financial income/expenses	-2	-2	-5	-5
Profit after financial items	25	15	88	79
Income tax	-5	-3	-16	-15
Profit after tax	20	12	72	64

Consolidated Statement of Other Comprehensive Income

	2019	2018	Rolling	2018
SEK million	Q1	Q1	12 months	Full year
Profit after tax	20	12	72	64
Other comprehensive income
Items that can be subsequently reversed in the income statement:		-		-
Exchange rate differences	10	8	7	5
Cash flow hedges	0	-	0	-
Tax on hedges and exchange rate difference	0	-	0	-
Total other comprehensive income after tax	10	8	7	5
Comprehensive income after tax	30	20	79	69

Earnings per share

	2019 Q1	2018 Q1	Rolling 12 months	2018 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)**	29,473	28,959	29,473	28,873
Earnings per share, SEK*	0.70	0.43	2.51	2.22
Earnings per share, SEK**	0.69	0.42	2.45	2.22

* Before dilution ** After dilution

Consolidated Balance Sheet

SEK million	2019 31 Mar	2018 31 Mar	2018 31 Dec
Assets
Goodwill	110	70	107
Intangible assets—customer relationships	16	-	15
Other intangible assets	13	9	13
Right of use assets	62	-	-
Property, plant and equipment	84	68	80
Deferred tax assets	2	3	2
Other financial assets	1	1	1
Total non-current assets	288	151	218
Inventories	435	286	370
Accounts receivable—trade	339	256	327
Other current receivables	19	27	19
Cash and bank balances	44	102	31
Total current asset	836	671	747
TOTAL ASSETS	1,124	822	965
Equity and liabilities
Equity	414	385	384
Liabilities
Long-term interest-bearing liabilities	15	12	12
Long-term liabilities, right of use asset	47	-	-
Deferred tax liabilities	8	2	8
Other long term liabilities	9	0	9
Total non-current liabilities	79	14	29
Current interest-bearing liabilities	194	100	176
Short-term liabilities, right of use asset	15	-	-
Accounts payable—trade	321	239	273
Other current liabilities	101	84	103
Total current liabilities	631	423	552
TOTAL EQUITY AND LIABILITIES	1,124	822	965

Consolidated Change in Equity

SEK million	2019 Q1	2018 Q1	Rolling 12 months	2018 Full year
Opening equity	384	369	385	369
Effect of change in accounting principle	0	-4	0	-4
Total	384	365	385	365
Comprehensive income after tax	30	20	79	70
Payment warrants	-	-	0	0
Repurchase of shares	-	-	-22	-22
Dividend	-	-	-29	-29
Closing equity	414	385	414	384

Consolidated Cash Flow Statement

SEK million	2019 Q1	2018 Q1	Rolling 12 months	2018 Full year
Operating activities
Profit after financial items	25	15	88	79
Reversed depreciation and amortisation	10	4	26	19
Other non-cash items	-5	0	-9	-3
Tax paid	-7	-6	-12	-11
Change in working capital	-18	3	-78	-57
Cash flow from operating activities	5	17	15	27
Cash flow from investing activities	-3	-3	-103	-103
Cash flow from financing activities	10	-1	28	18
Change in cash and cash equivalents	12	13	-59	-58
Cash and cash equivalents
At beginning of period	31	87	102	87
Cash flow after investing activities	2	13	-88	-76
Cash flow from financing activities	10	-1	28	18
Exchange rate difference in cash and cash equivalents	1	3	1	2
Cash and cash equivalents at end of period	44	102	44	31
Un-utilised credits	82	56	82	97
Available cash and cash equivalents	126	158	126	128

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	2019 Q1	2018 Q1	Rolling 12 months	2018 Full year
WESTERN EUROPE
External net sales	262	185	901	824
Internal net sales	2	3	10	11
Operating profit	22	11	69	59
Operating margin	8.2%	5.9%	7.6%	7.0%
Inventories	253	148	253	217
External accounts receivable—trade	223	162	223	219
Average number of employees	434	307	367	339
REST OF WORLD
External net sales	143	123	575	555
Internal net sales	19	18	82	80
Operating profit	7	6	39	39
Operating margin	4.0%	4.2%	6.0%	6.1%
Inventories	182	139	182	152
External accounts receivable—trade	115	93	115	108
Average number of employees	594	600	621	620
INTRA-GROUP
Internal net sales	-21	-21	-92	-91
Operating profit	-2	0	-15	-14
External accounts receivable—trade	0	1	0	-
Average number of employees	17	20	21	21

Sales per customer segment

SEK million	2019 Q1	2018 Q1	Roliing 12 months	2018 Full year
WESTERN EUROPE
Industrial	166	133	578	545
Communication	27	17	97	87
Medtech	35	21	126	112
Defence	32	15	94	77
High end consumer	1	0	5	4
Total external sales	262	185	901	824
REST OF WORLD
Industrial	92	83	356	347
Communication	47	32	189	174
Medtech	0	0	4	4
Defence	0	-	0	-
High end consumer	4	8	26	30
Total external sales	143	123	575	555
TOTAL
Industrial	258	216	934	891
Communication	74	49	286	261
Medtech	35	21	130	116
Defence	32	15	94	77
High end consumer	5	8	32	34
Total external sales	405	308	1,476	1,379

Parent Company Income Statement

SEK million	2019 Q1	2018 Q1	Rolling 12 months	2018 Full year
Net sales	10	9	38	37
Cost of services sold	-4	-4	-16	-16
Gross profit	6	5	21	21
Selling expenses	-5	-2	-23	-21
Administrative expenses	-3	-3	-12	-12
Other operating income/expenses	6	-	5	-1
Operating profit	4	0	-9	-13
Net financial income/expenses	1	-	42	41
Profit after financial items	5	0	33	28
Appropriations	0		-7	-7
Profit before tax	5	0	26	21
Income tax	0		-4	-4
Profit after tax	5	0	22	17

Parent Company Statement of Other Comprehensive Income

SEK million	2019 Q1	2018 Q1	Rolling 12 months	2018 Full year
Profit after tax	5	0	22	17
Other comprehensive income
Items that can be subsequently reversed in the income statement:	-	-	-	-
Total other comprehensive income	-	-	-	-
Comprehensive income after tax	5	0	22	17

Parent Company Balance Sheet

SEK million	2019 31 Mar	2018 31 Mar	2018 31 Dec
Assets
Intangible assets	4	1	4
Property, plant and equipment	0	1	1
Long-term receivables from group companies	90	5	80
Financial non-current assets	222	221	221
Total non-current assets	316	228	306
Receivables from group companies	65	62	67
Other current receivables	10	8	7
Cash and bank balances	-6	57	-6
Total current assets	69	127	68
TOTAL ASSETS	385	355	374
Equity and liabilities
Equity	221	250	216
Untaxed reserves	7	-	7
Liabilities
Liabilities to group companies	139	93	129
Other current liabilities and provisions	18	12	22
Total current liabilities	157	105	151
TOTAL EQUITY AND LIABILITIES	385	355	374

Parent Company Change in Equity

SEK million	2019 Q1	2018 Q1	Rolling 12 months	2018 Full year
Opening equity	216	250	250	250
Comprehensive income after tax	5	-	22	17
Repurchase of shares	-	-	-22	-22
Dividend	-	-	-29	-29
Closing equity	221	250	221	216

This is NOTE

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.

Financial information

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

Calendar

Interim report Q2 15 Jul 2019 Interim report Q3 22 Oct 2019

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)8-568 990 00

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

Speedboard Assembly Services Ltd 1a Alma Road Windsor SL4 3HU UK

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