Nolato AB (publ)

Hello, and welcome to today's presentation with Nolato, where CEO Casey Wahlquist and CFO Paolo Holmström will present a report for the first quarter of 2026. After the presentation, there will be a Q&A. So if you're calling in and want to ask a question, please press star nine to raise your hand, and then star six 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 Nolato's first quarter of 2026. Chris DeWalker speaking here and starting on page two. The first quarter, during the first quarter of 2026, we saw growth in both our business areas, despite a very volatile geopolitical situation. The total organic growth, if we adjust for currency, ended up at 3%. And it was a little bit stronger on the medical side with 5% and 1% on the engineer side. That summarizes to an EBIT A of 260. And of course, the EBIT A was strongly affected by currency headwinds as we calculated 7%. We kept our margins on 11% and sustaining them in a good way. And, of course, our strong financial position with very good possibilities to execute our acquisition agenda remains. Turning to page three, summarizing the Nolato group, the group consists of two business areas, the medical solution at 57% of the total and the engineered solution at 43%. Of course, it's two different markets, but behind the scenes, we are doing similar things, of course, with some different growth drivers and the different key needed things. But the two business areas create synergies by combining them to the customer interface. Then we jump to page four, summarizing the first of the medical solutions. And here we can see a 20-year graph of our development. And we are, of course, continuous sustainable growth with global expansion as a target. If we look in behind the scenes on page five, we summarize the different focus product areas. And, of course, then we can start with the in vitro diagnostics, which this quarter had good growth and ended up at 18% of the total business area. This therapeutical areas is a long-term growth market that we think has good potential for the continuous years going ahead. The second one is cardiology, ended up also growth. 7% of the total in this area. This is, of course, the area with the toughest quality demands. Then we have pharma packaging decreasing as a share of the total, 11%. And this is an area that we entered into because we wanted to build ourselves strongly into the drug delivery area. And then, of course, we see the drug delivery increasing from 16 to 70% of the total. This is long-term potential with delivery devices for the large molecules within pharma. Then we saw endoscopy and general surgery decreasing as a total of the total group, ending up at 20%. We saw some stock changes in that market. And then continence care is a high-volume market building for future. Jumping to page six, focusing on the performance first quarter of medical. As mentioned, we increased the sales with 5% adjusted for currency. And as I mentioned before, we saw growth in in vitro diagnostics, higher proportion of new products. We saw a continuous upbeat performance of the drug delivery. We saw, as mentioned before, surgery contracted due to inventory adjustments, and other markets had stable volumes. The margin ended up at 11.8 percentage points. We saw some negative impact in the quarter from growth in newer products that have not yet reached the planned volumes. And, of course, resources for starting up new projects have some negative impact on the margin. The expansion in Hungary linked to the large customer program within the drug delivery systems is proceeding according to plan, and the validation deliveries was during the quarter according to plan. And late in the second quarter, we expect to have our first commercial volumes in that program. Moving to page seven on the engineered solution side. And, of course, here we are advancing our high productivity manufacturing on a global scale, adjusting the customer base and growing in new areas. If we look on page eight, the focus different areas here, we saw consumer electronic grow as a share of the total, ending up at 11%. Here we are doing advanced products for smart homes, so strong growth in that area. The automotive was stable at 23% of the total. On the hygienic side, we saw some stock movements decreasing the share of the total to 13% from 15% before. Others also had some headwinds on the white goods side and also some on the forest equipment. Materials had very strong growth within the quarter. This is, as mentioned, a little bit premium margins, and as a share of the total, it was growing from 18 to 21%. Summarizing the business area's first quarter, we saw 1% adjusted growth, very strong growth for the materials, a full 15% adjusted for currency. We saw, as mentioned before, strong growth in the consumer electronic market where the smartphone products are growing, lower volumes within the hygiene affected by inventories, as mentioned, and stable volumes for automotive. So the margin ended up at 10.6%, and, of course, it was affected by the favorable mix with a higher proportion of materials.

Good afternoon, Per-Ola Armstrong, CFO, and group financial highlights on page 10. Net sales was in the quarter, the 3% growth ending up at 2,357,000,000. Currency headwinds of 7%. Operating profit amounted to 260 millions compared to 271 millions last year, again affected by currency. We had an unchanged EBITDA margin of 11%. Tax rate was within expected range of 22%. Cash flow from operating activities rose to 225 millions compared to 135. The change of working capital was lower than last year. Net investments affecting cash flow decreased to 193 millions compared to 271. mainly because last year included an operating property in Poland of 69 million. Return on capital employed for the last 12 months was 14%. Net financial liabilities in relation to EBITDA on a low level 0.5 times, securing flexibility for expansion.