Nolato AB (publ)

Hello and welcome to today's presentation with Nolato, who is going to present the report for the fourth quarter of 2025. With us here to present today is CEO Christoph Wahlquist and CFO Per-Ola Holmström. After the presentation, there will be a Q&A, so if you're calling in and want to ask a question, please press star 9 to raise your hand and then star 6 to unmute yourself when handed the word. You can also send in questions via the form to the right. And with that said, I hand over the word to you guys.

Thank you, and welcome to the presentation of Nonato's fourth quarter of 2025. Starting on page two, we had a sales that totaled just shy of 2.3 billions in the quarter, which gives a growth of approximately 2% adjusted for currency. We saw an increased growth rate for the medical solutions business area at 5%. We saw a decrease of approximately 1% for engineered solution adjusted for currency. We had some headwinds on the sales in the last part of the quarter due to Christmas holidays and during that time. Our operating profit ended up at $236 million in comparison to $240. This was strongly affected by currency headwinds of 6%. The margin rose to 10.4, so we saw improved margins in both areas, but sequentially lower due to somewhat weaker volumes during the Christmas break, and also some startup costs for the new programs in the United States. If we focus on the full year of 2025, we ended up at close to $9.5 billion in sales. That was correspondent to a 2% increase adjusted for currency. We saw an operating profit increase 11%, even though we had a strong currency headwind. The margin improved and ended up at 11.3%. in comparison to 9.9. So we saw a full 1.4 percentage points increase of margin. The earnings per share ended up at 2.88 SEC per share. And we have a very strong financial position enabling us to execute on our increased acquisition strategy. The dividend proposal is 1.7 in comparison to 1.5 krona per share, and that is the current payout ratio of 59 in comparison to 61 last year. If we jump to page five, starting with medical solutions, here we are on the growth and global expansion journey. And this business area now corresponds to 58% of group sales in the fourth quarter. On page six, we see our focused product areas. We feel that we are very well positioned with leading global customers and positioned in very interesting product areas. If we go through them a little quickly, we see the in vitro diagnostics with a long-term growth potential, and we have a very strong position in this therapeutical area. Cardiology, of course, high-end market. A lot of lifetime implants and very high demands on the products delivered. Drug delivery, growth market area where we have a very strong position and well positioned for continuously growth. Endoscopy and general surgery. It's a changing market. It's interesting with the new sort of more robotic surgery that are coming in. Continuous care, of course, high volume market with huge volumes. If we then jump into the fourth quarter for medical solutions, we ended up just about 1.3 billion in sales, which corresponds to 5% adjusted currency growth. We see that the drug delivery market continued to exhibit growth. within the out-injector and pen-injector systems. We saw a positive development for the in vitro diagnostic during the year with a slow start last year and then increasing volumes. If we look on the margin side, we ended up at 11.6% margin for the business area. That is an improvement of 0.4 percentage points compared to 2024. We had, during the quarter, negative impact due to a temporary high cost for the startups, as mentioned before, and also some volume headwinds during the Christmas breaks. Our expansions are going according to plan, both in Hungary, Poland, and Malaysia. Jumping into engineered solution, which is Sales level of close to a billion and 42% of group sales in fourth quarter. In this area, we are focusing on the different product areas, of course, the consumer electronics, where we see potentials, hygiene, good potentials, and automotive, of course, a little bit slow right now, as we explained in previous quarters. And then as a little bit different market, the materials, where we see strong growth, but also affected during this quarter by the increased cost of precious materials. Jumping to the next page and then summarizing engineered solutions for the fourth quarter. As mentioned, strong growth in materials, 10% increase if we adjust for the currency. We saw sustained performance for consumer electronics, particularly in Asia. After a positive performance during the year, volumes decreased for hygiene in the last quarter due to inventory adjustments ahead of year end. The total business area ended up at a margin of 9.9 in comparison to 9.2. We saw, of course, favorable product mix, but if we compare to the previous quarters of 2025, we had negative impact of the lower volumes and sharply increased precious metal prices, as mentioned.

Good afternoon. and group financial highlights on page 11. Net sales was 2,272,000,000 in the quarter, a 2% growth given currency headwinds of 7%. Operating profit EBTA amounted to 236,000,000, slightly below last year, but with currency headwinds of 6%. representing an accelerating negative effect of about 14 million sq in the fourth quarter. The EBITDA margin for the full year 2025 improved by 1.4 percentage points, driven by pricing, cost adjustments, and efforts in the entire supply chain. The quarter improved 0.3 percentage points to 10.4%. The declined margin compared to previous quarters, 2025, was negatively affected by 1. Temporarily higher costs for startup of the new products in the U.S., The medical margin was negatively affected by that by 0.5 percentage points. Two, slightly lower volumes within mainly engineered due to holidays at year end. Three, sharply increased prices for precious metals within materials in business area engineered. Summarizing these two effects for engineered, the total negative effect is 1.0 percentage point for the business area. Four, group cost was on the high side in Q4, and in comparison to Q3, that had one-offs of plus 7 million C in addition. Effects from M&A activities in Q4 giving a delta of 10 million C compared to Q3. Summarizing these four items, the temporary negative effect is in the range of 25 to 30 million C compared to Q3. Parts of these will influence the first quarter 2026 as well. Cash flow from operating activities was 310 millions. The good level in the quarter at last year was very positive from improved working capital. Net investments. We did see a shift in trends. CapEx declined compared to the comparative quarter last year to 146 million. The full year 2026 is expected to be between 650 to 700 millions, where 100 approximately still is left for the Hungarian project. Return on capital employed for the full year improved to 14.2%.