Nolato AB (publ)

Hello and welcome to today's webcast presentation where we have Nolato presenting the Q1 report for 2024. With us presenting we have the CEO Krister Wahlqvist and CFO Per-Ola Holmström. If you're calling in and would like to ask a question please press star 9 to raise your hand and star 6 to unmute yourself. We will then announce if it's your turn by saying the last four digits of your phone number. You can also use the form that is located to the right. And with that said, please go ahead with your presentation.

This is Christoph Wallquist, and I welcome you all to the presentation of Nolato's first quarter of 2024. Starting on page two in the presentation, it's a summary of the first quarter. And we have, of course, working as a global solution provider and established on the three important continents for the type of business we are in. During the quarter, our sales totaled 2.442 million, which is a decrease of 2% adjusted for currency acquisitions compared to the correspondent quarter 2023. We saw growth within the medical solutions business area, while the engineered solutions saw lower sales. The EBITDA ended up at 238 million in comparison to 193. So that is, of course, a margin increase to 9.7% compared to 7.8%. We saw the main effect of the improved margins within the business area engineered solutions. We have a strong financial position enabling us to further possibilities, both organic growth and inorganic growth. If we turn to page three in the presentation, showing the new group structure with two business areas, I will come back to that a little bit later. So Nolato has two business area, medical solution, which is the larger of the two, which is focused on the medtech and pharmaceutical market, working as a solution provider for large global pharma and medtech industry. The engineered solutions business area, is working as a design development industrialization and manufacturing partner to global companies within different sets of industries. If we then jump into the medical solutions on page four, we saw sales during the quarter close to 1.4 billion in sales, so it's continued growth. This business area is then the correspondent to 55% of group sales in the first quarter. The EBITDA ended up at 140 million during the quarter, giving a margin of 10.3%. So you can see also the graph of our continuous growth within our medical solutions business area of the last 20 years. On page five, there's a split up of the important product areas for us. Those product areas have been selected from different drivers, but overall, we see growth potential across. Some different dynamics. If we start with the in vitro diagnostic, of course, the diagnostic is more and more used within the health care system in order to get your feedback from blood analysis and so on. So it's a very high volume business with long term growth potential. Cardiology, it's more related to heart things and of course a high quality, very high demands on the products since they are implantable into your body. Pharma packaging is dry containers for liquid and solid drugs. Continence care, the high volume market with growth potential, more and more people are getting treatments for their continence difficulties and so on. Endoscopy and general surgery, it's related to, of course, different kinds of surgical procedures. We see in this market more and more robotics coming into the picture and creating opportunities for continuous growth. Then drug delivery systems is different systems to get large molecule of drugs into your body. It could be auto-injectors, it could be pump therapy and pen systems. If we then focus on the first quarter for medical solutions, we saw a stable volume situation across most markets. But we saw IBD grow compared with the week comparison quarter last year. We saw within our other category lower volumes, and we had in that sense a customer that were formed to do a recall of products. It's not related to us, but the effect is affecting us in that sense. We saw within the drug delivery and surgical a little bit lower volumes and it was supply chain adjustments at our customer sites. And as previously announced, we have signed a very interesting long-term cooperation with a significant existing customer. The potential for this within a maybe five year period is approximately 700 million in yearly sales. On this picture, you will also see the sales per customer, the sales split up into different categories. And if we take some of the highlights there, we can saw the growth within in vitro diagnostic. going from 14 to 18 percent of the total and of course the other sector then decreasing from 17 percent down to 15 percent. So the quarter sales was 1.355 million Swedish in sales and creating then the EBITDA of 140 million. Switching over to engineered solution, where we are working with advanced technology and high productivity manufacturing. The sales was a little bit shy of 1.1 billion during the quarter, corresponding to 45% of group sales. We created an EBITDA result of 103 during the quarter. If we then Jump to page eight. You will see the major areas, the most important product areas for us, starting on the left top corner, materials. That was previously named EMC and thermal management. But since we are adding more solutions within that, we are talking about materials instead. Then we have consumer electronics on the top where we see products like connected Wi-Fi system, security system and small handheld electronic devices. Then we have the automotive sector, mainly working with the Scandinavian manufacturers of large vehicles and personal vehicles. Hygiene sector and then another sector within this business area. On page nine, we can see the split up of the sales per these different areas. And specifically, we could see the consumer electronic going from 21% of the business area sales down to 6%. That is, of course, the large customer, important customer that we have been ramping down during some period, and that is affecting. The other sectors were then, of course, correspondent growth. We saw continued healthy growth within automotive, and we saw within the hygiene a strong growth compared to a weak comparison quarter. The sales, as I mentioned, ended up at just shy of 1.1 billion and 103 million in operating profit, creating then a margin of 9.5 percentage points.

Good afternoon, Per-Ola Holmström commenting on key performance indicators on page 10. Net sales totaled 2,442,000,000, which is a decrease of 2% adjusted for currency and acquisitions. Growth for medical solutions, while sales were lower for engineered solutions. Operating profit EBITDA increased 23% to 238 millions compared to 193 millions. The EBITDA margin increased to 9.7%. The tax rate was 22.5%. which we consider to be in line with the full year rate for 2025. Cash flow from operating activities amounted to 136 millions compared to 75, improved by higher profit and lower working capital requirements. Net investments of 230 millions includes the payment of 141 million for acquiring an operating property within Medical Solutions. We have mentioned this to CAM for quite some time and during the first quarter we did acquire the property. For the full year, we expect around 750 million SEK in capex, including the operating property and this year's capex for the newly announced medical project. Earnings per share increased to 0.60 SEK compared to 0.50. The net financial liabilities amounted to just above 1 billion. And the adjusted dip ratio was 0.8 times.