Nolato AB (publ)

Hello everyone, and welcome to today's presentation with Nolato. With us presenting today, we have the CEO, Christer Wahlqvist, 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 unmute yourself when you get the word. You can also submit written questions using the form to the right. And with that said, please go ahead with your presentation.

Good afternoon and welcome to the presentation of Nolato's third quarter 2025. This is Krister Walkie speaking. During the quarter we saw organic growth in both our two business areas, approximately 2% if we adjust for currency, and that in combination with a strong increase of our margins created a strong increase of our EBITDA. So the sales ended up at 2.3 billion and some, and the operating profit rose 20% to 281. That includes a non-recurring item of 7 million corresponding to an insurance claim. But as I mentioned, we saw strong improvements of margins in both business areas. We have maintained a very strong financial position with a debt ratio of 0.6 times EBITDA, giving us opportunity and possibility to expand together with the right business cases from existing and new customers, as well as executing on our acquisition strategies. The Nolato Group consists of two business areas, the medical solution being the largest part at approximately 56% of group sales and engineered a little bit less than 50% and the rest of the business. Starting out with medical solutions. Here we see sustainable growth and global expansions. And on this graph, you will see a 20-year show of our sales over the last 20 years. So we've seen good growth over the years. We have a very spread business with six focus product areas, and there are also well-spread sales across global leading customers, creating a strong foundation for continuous growth and focus on these six product areas. If we look in to the third quarter for medical solutions, we saw a sharp margin improvement The full 1.4 percentage point ending up at 12.1% in the quarter. That in combination with the increase of sales, 2%, created, of course, an improved operating profit ending up at 159 million. We are expanding our business. So we have expansions ongoing in Hungary, Poland, and Malaysia. And all of these are according to plan. And in our Hungarian facilities, we have, during the quarter, started validation deliveries during the third quarter. And we expect that these validation deliveries to continue on approximately the same level for the coming quarters, and then subsequently expected to increase somewhere in the late second quarter. Jumping into engineered solutions, here you also see a graph of the last 20 years. And we are now in a position where we have downsized our VHP business and are building a strong foundation in the focused product areas shown on this page. Here we have a well-spread business, different product areas with a little bit different If we specifically look into the materials, which is then of course based on our own recipes of raw materials. If we look into the third quarter for engineered solution, we saw very sharp margin improvements. a full 1.8 percentage points during this quarter. And it's coming from implemented cost savings and increased capacity utilization. And of course, some price adjustments. The business sales totaled 1.035 million during the quarter, which was a 2% currency adjusted organic growth. We saw sales to the automotive industry increased through higher product invoicing and more normal vacation shutdowns amongst our customers. We saw a continuous growth in our hygienic area thanks to investments in Mexico and also a positive performance for our consumer electronics, particularly in Asia.

Good afternoon. Per-Ola Holmström coming to you. on growth financial highlights. Net sales amounted to 2,342,000,000 in the quarter, representing a 2% growth adjusted for currency. Operating profit EBITDA increased by 20% to 281,000,000. And the EBITDA margin for the group improved by 2.2 percentage points. to 12.0%, including a non-recurring positive item of 7 million. The effective tax rate was 19%, which we expect it to be for the full year as well. Net investments were 183 millions in the quarter, a higher level of capex than last year as planned, mainly for the expansion in Hungary. We foresee around 850 million SEK in capex for the full year 2025. And by then, we expect to have paid almost 500 million SEK of the total expansion of 600 million SEK in Hungary. And hence, cash flow after investments was lower than last year, 180 millions compared to 191 millions. Earnings per share increased to 0.8 SEC. Return on capital employed improved again to 14.1%, mainly driven by the margin improvement.