Nolato AB (publ)

Hello and welcome to today's presentation with Nolato. With us presenting today, we have the CEO, Christer Wallquist, and CFO, Per-Ola Holmström. If you have any questions and you're calling in, please press star nine to raise your hand and then star six to mute yourself when it's your turn to speak. You can also submit your written questions via the form located to the right. And with that said, please go ahead with your presentation.

Thank you and welcome to the presentation of Nolato's first quarter 2025. This is Chris DeWalkwist speaking. If we summarize the quarter, we had similar sales as comparison quarter, but with a very strong increase of our margins amounting to 11% as a total. creating an EBITDA on 271 million. We saw growth within the medical, but slightly lower sales for engineered solution due to the automotive sector. If we look on the margins, we strengthened the margins in both business areas, but particularly strong performance for medical solutions. Still, we have a very strong financial position with net financial liabilities in relation to adjusted operating profit of 0.5 times. Moving to page three in the presentation deck, looking at the two parts of our business, medical solution, now correspondent to 57% of our total sales, and engineered solution, 43% of the overall sales of the group. Jumping into medical solutions, starting with that, sales amounted to just below 1.4 billion in the quarter. And you can also see the continuous growth of the business area over the last 20 years on the graph. Moving to page five in the presentation deck, splitting up the medical sales in different focus product areas. During this quarter, we saw growth within the drug delivery part of the business. And other than that, minor changes around the different parts of the business. On page six, we summarized the medicals first quarter. We saw adjusted sales increase, if we adjust for currency, of 2%. And we saw stable volumes across all the different market areas. But of course, some growth within the drug delivery. Surgical has been stabilizing. And within the IBD, we saw some lower volumes during the quarter. But it's more volatility quarter to quarter than anything else. A strong margin improvement, a full 1.9 percentage points increase amounting to 12.2% for the quarter. We saw that coming mostly from our US operation with the cost adjustments and intensive work together with customers of the total supply chain in giving improvements both for the customer and ourselves. The expansion in Hungary linked to the big order that we announced a year ago is going according to plan and is progressing in a planned way. We have during the quarter also acquired a property in Poland that will enable us continued expansion in Europe. This is approximately 8,000 square meters of property. So the quarter ended up just below 1.4 billion, an operating profit of 171, creating the margin of 12.2 percentage points. Jumping into engineered solutions, and here you see some volatility, but over the last years we have stabilized and are now focusing on finding new business and continue the growth of the business area. If we split up the sales within engineered solutions, during this quarter, we saw a good growth with materials growing at 12% in the quarter. We saw slower sales within automotive. That was expected, but we've seen the volumes now on a lower level, and we expect that to continue on that level for the coming period of time. If we then look on page nine and summarize the business area, we saw adjusted currency sales decrease of 3%, and as expected, automotive industry declined, and stable volumes across the other sectors, except within materials, that we saw sharply increased volumes and growth at a strong 12%. The margin within the business area increased to 10.1 percentage points. It was, of course, favorable product needs, but also cost adjustments that we have made in the business. So sales amounted to 1,058,000,000 in the quarter, operating profits at 107.

Good afternoon. commenting group financial highlights on page 10. Net sales amounted to 2,453,000,000, similar as same period last year. Operating profit in EBITDA increased 14% to 271,000,000 by margin improvement in both business areas, but mainly within medical. And the EBITDA margin for the group improved by 1.3 percentage units to 11.0. The effective tax rate was 21%. And we expect between 21 and 22% for the full year. Cash flow from operating activities was similar to last year. boosted by improvements in profit, but somewhat higher working capital requirements having a negative effect. Increased activity and sales at the end of the quarter compared with the end of 2024 resulted in higher trade receivables. Net investments, as expected, came in higher. at 271 millions compared to 230 millions last year. Large effects of CapEx in Hungary for production of devices for treatment of overweight and diabetes. In addition, an operating property in Poland was acquired for 69 millions for future medical expansion. We expect 850 millions for the full year. Earnings per share increased to 0.74 SEC and return on capital employed improved to 12.7%, mainly by the margin improvement. Net financial liabilities in relation to EVTA at a low level, 0.5 times, enabling expansion and