Nolato AB (publ)

Good morning and welcome to today's presentation with Nolato. With us presenting today, we have the CEO, Christer Walkvist, and CFO, Per-Olo 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 mute yourself when you get to work. You can also use the form located to the right. And with that said, please go ahead with your presentation.

Okay, good morning everybody and welcome to the presentation of the second quarter for Nolato Group. Turning to page two in the presentation and the summary of Nolato Group. We had during this quarter sales that amounted to just shy of 2.4 billions, which then gives a currency adjusted organic growth of 4%. We saw growth in both business area. We saw growth a sharp increase of our EBIT A margin, increasing 1.6 percentage points to 11.6, and creating an increase of our operating profit by 13% to 277 millions, despite a strong currency headwind. Turning to page three. summarizing up the Nalato group and the two business areas. So the group is built up based on two distinct business areas, with the medical solution being the largest portion, and then engineered just close by in size. If we turn to page four, focusing on our medical solutions business areas, here you can see a graph of 20 years consecutive growth. And of course, we are focusing on continuous growth and global expansion with this business area. Turning to page five, summarizing up our focus products areas within medical solution, starting in vitro diagnostics. It's a high volume market with good growth potential going forward. Then we have our cardiology part with lifetime implants and very high demand products. Third, pharma packaging, which is consistent of containers for solid and liquid drugs. We have our continence care part of the business. It's a very high volume market. Then we have endoscopy and general surgery, which is an area in some change with more focus on robotic surgery going forward. Good growth potential. Then drug delivery systems with strong growth potential with based on large molecules that needs to be injected into your body. Turning to page six, focusing on second quarter for medical solutions. So during this quarter, we are proud that we have increased our operating profit to 170 millions, which is a good growth of that, even though we have had strong currency headwinds. Within the business area, the sales amounted to 1.350 million Swedish. which is an increase of 5% if we adjust for currency. We are continuing our expansion and the expansion in Hungary linked to a significant customer contract is proceeding according to plan. And we have also recently decided to establish operations in Malaysia to enable our continued expansion in Asia. Turning to page seven, focusing on engineered solutions. This business area is focusing on advanced technology and high productivity manufacturing on a global scale. So you can see a graph of our sales during 20 years as well here. This business area corresponds to approximately 44% of group sales. Turning to page eight, focusing on the different product areas within engineered solutions, starting with consumer electronics, which is then, of course, different type of surveillance systems, connected Wi-Fi systems, and those kind of things for home use and professional use. Second is the automotive market. We are, as expected, seeing some weaker market conditions if we look on a little bit long period. The third one is then hygienic, which is in a good growth situation, focusing on a different type of hygienic products for the engineered solutions market. Then we have materials, which is a little bit different in the setup. And in this area, we see we have very premium margins corresponding to the rest of the business area. Turning to page nine. focusing on second quarter for engineered solutions. We had an increase of sales, approximately 1% if we adjust for currency, but we also had a strong increase of our operating profits, 8% increase still with the strong currency headwinds. Below the surface or continued positive performance for the hygienic market, we saw an increase in the consumer electronics, mainly through our investments in Asia. And as expected, volumes for the automotive are contracted. The EBITDA margin ended up at 11.2%, a strong increase with 1.2 percentage points. Turning to page 10.

Good morning, Per-Ulla Holmström, Commenting Group, Financial Highlights. Net sales amounted to almost 2.4 billion in the quarter, representing a 4% growth adjusted for currency, despite heavy headwinds from the currency situation. The EBITDA margin for the group improved by 1.6 percentage points to 11.6%. The margin improved strongly in both business areas. The effective tax rate decreased to 20.3% and we expect to be around 20% for the full year. Net investments was 188 millions Again, a quarter with high capex for the expansion in Hungary as planned. We expect around 850 millions for the full year. Cash flow after investments was 128 millions compared to 336 millions because of the high capex investments. Earnings per share increased to 0.79 sex compared to 0.63 last year. Return on capital employed increased this quarter following the trend in the recent quarters to 13.4%, mainly driven by the margin improvement. Strong net financial liabilities in relation to EVTA after paid out dividends of 404 millions in the quarter. and was 0.7 times, enabling expansion and acquisitions. Turning to page 11.