Nolato AB (publ)

Good morning and welcome to today's presentation with Nolato. With us presenting today, we have the CEO, Christer Wahlqvist, and CFO, Pera-Ola Holmström. If you're calling in and would like to ask a question, please press star nine to raise your hand and then star six to unmute yourself when it's your turn to speak. You can also submit written questions via the form located to the right of the broadcast and we'll take that up during the Q&A. And with that said, please go ahead with your presentation.

Okay, welcome everybody to the presentation of Nolato's fourth quarter of 2024. Starting on page two, we saw a quarter with the sales increase, we saw five percent If we adjust for currency across the board, organic growth for both business areas. Now we have been changing our product offering or product portfolio within the engineered solutions business area and started seeing growth in that area. The operating profit rose by 36% to 240 millions for the fourth quarter. The margin, of course, is a sharp increase across both business areas and ended up above 10%. We can also happily present that we have a very strong cash flow from operating, which rose to 480 millions during the quarter. And of course, that was fueled by improved profit and reduced working capital requirements during the quarter. Turning to page three. Looking at the full year of 2024, during 2024, we had a sales of just shy of 10 billion. So we saw an increase of 1% if we adjust for currency across the board. And during this year, we have, of course, introduced our new business area engineered solutions and changed the product mix within that area. And now starting seeing some growth from that. The margin ended up at 9.9%, so we saw improved margins across both business areas. Earnings per share, 2.44 Swedish kronas. And of course, very strong financial positions with net financial liabilities of 671 million. And the debt ratio compared to net financial liabilities of 0.4. The Board of Directors' proposal for dividend is unchanged at 1.5 Swedish kronor per share, and that is within the policy that says about 50% of net profits, and this is correspondent to 61%. So that strong balance sheet enables us to further grow and expand together with customers, as well as acquisitions going forward. Turning to page four, focusing on the two business areas within the group. So we have medical solutions as the major part of the group, close to 1.4 billion in the quarter. And then we have engineered solutions. That is the new formed business area that has been shaped up. And we see good improvements in that business areas as well. On page five, you can see a graph of our 20 last year's development of our sales. So we've seen continuous growth across over the last at least 20 years. If we look on page six, we will see the mix of different focus product areas. So we are focusing on in vitro diagnostics, which is a growth area with high volume manufacturing, very tight tolerances and interesting to be in for the future as well. Cardiology, which is an area high focus on very high demands from quality standpoints, implants and so on. pharma packaging, continence care, endoscopy and general surgery, and then, of course, drug delivery. Jumping to the focus on medical solutions for fourth quarter on page seven, we saw a 5% increase of sales, but if we adjust it for currency, it's a 4%. We saw within the different market areas that we saw drug delivery showed a strong growth, We saw IVD growing compared with the week quarter last year. We saw pharma packaging had lower volumes. We saw inventory adjustments and geopolitical effects on customers in that, and also some lower sales from surgical. The margin improved to 11.2%. We saw our continuous focus on improving margins are generating results. and we saw the strategic price revision and cost savings affecting us. If we jump to page eight, focusing on engineered solutions, here we have had some years of adjusting our product mix, and now that is finished and we start working with our future. Here we are focusing on consumer electronics, automotive, hygiene, materials, and other areas. Jumping to page 10, summarizing up the engineered solutions business area, we saw a good increase of sales, 8%, but currency adjusted ended up at 7%. We saw good growth or good development in all areas except the automotive business where we saw some decline. Consumer electronics saw increased growth from very low levels, and we are seeing that our investments in new areas are bearing fruit. Healthy growth within hygiene, Then, of course, the automotive displayed lower volumes as expected, but we also see that we expect a negative impact on the start of 2025 for the automotive. The materials business showed a sharp increase in volumes, and the growth was a full 20% currency adjusted through healthy growth for the telecom side of the materials business. Good growth of margin. Improvement to 9.2 percentage, of course, based on cost adjustments, but also a favorable product mix during the quarter.

Good morning. Per-Ola Holmström commenting Group Financial Highlights on page 11. Net sales increased to 2,382,000,000, a growth of 5%. Operating profit increased by 36% to 240 millions, and the EBITDA margin was 10.1% for the fourth quarter. The effective tax rate for 2024 was 22.4%. We expect a similar rate around 22% for 2025 as well. We do not foresee any material changes because of Pillar 2 rules. Cash flow from operating activities was very strong, amounting to 480 millions compared to 186 last year. The net investments increased to 172 millions compared to 106. Higher because of the new medical project, we have during 2024 invested 140 millions of the assessed 600 millions for that project. We expect to invest more 2025 between 800 and 850 millions for the total year. The strong cash flow has enabled us to decrease net financial liabilities to 671 millions or 0.4 times our EBITDA result. Return on capital employed increased to a 12.3%.