Nolato AB (publ)

Hello and welcome to today's broadcast with Olato, who will be presenting their financial report for the second quarter of 2026. With us, we have the CEO, Christer Wallqvist, and CFO, Per-Ola Holmström. If you wish to ask questions, you can do so via the form found to the right of the broadcast, and if you're calling and would like to ask a question, press star 9 to raise your hand and star 6 to activate your audio once you've been given the word. With that said, I hand it over to you, Christian Perola. The floor is yours.

Thank you and welcome to the presentation of the second quarter for Nolato Group. Starting on page two, we saw a quarter with growth in both business areas with a total growth of 4% currency adjusted with the strongest growth in the medical business area. This was achieved in a difficult environment, I would say. So sales ended up at close to 2.5 billions in the quarter, and that was then 4% adjusted currency growth. The profit EBITDA ended up at 247 millions, creating a margin of 10.1%. The margin was affected by increased raw material prices and some startup costs for new programs. strong cash flow in the in the quarter ended up at 287 millions and as a total we have a very strong financial position enabling us to deliver on the intensified acquisition strategy as communicated previously turning to page three summing up the group so nolato consists of two business areas that create synergies across Both business areas are then working as a development and production partner for leading global customers. On page four, we see a summary of medical solutions development over the last 20 years. So we have seen a continuous sustainable growth and built a global expansion. On page 5, we see a summary of our focus product areas and as mentioned previously, we see growth opportunities across, of course, with some different driving forces, but we see good potentials across the board and we will continue to deliver on the long-term growth of the business area. On page 6, We summarize up the second quarter for medical solutions and the sales ended up close to 1.4 billion in sales. That is then of course a growth of 4% if we adjust for the currency. We saw good development for the in vitro diagnostic market segments. We saw also continuous growth in the drug delivery systems and across the other market areas we saw stable volumes. The EBITDA margin ended up at 11.7%. We saw some negative impact from both raw material price increase driven by oil prices and in that sense we have a time lag before we can adjust to our customers. So we will adjust that going forward. We saw a negative impact in the quarter from a startup of new programs or projects that have not reached the volumes. And that is, of course, a part of our, these projects are a part of our supporting our growth targets for the medical business area. The expansion in Hungary linked to the new customer contract is proceeding according to plan and we have started commercial volumes produced in the end of the second quarter and after the quarter we have started deliveries of commercial volumes. We will gradually increase our capacity according to previously announced schedule. Jumping into engineered solutions on page seven. Here we see also a summary of the last close to 20 years for the business area. And on page eight, we summarize up the focus product areas for engineered solutions. Here in this area we have four of these areas, consumer electronics, automotive, hygiene and others are sort of similar in the business scope. And then we have the materials part that is a little bit different where we have our own developed material solutions for shielding and thermal management. That area we saw a strong growth in the quarter. Jumping to page 9 summarizing the second quarter for engineered solutions. We ended up at the sales of close to 1.1 billion in the quarter and that was a 3% adjusted growth in the quarter. Supporting that was our strong growth for the materials which by itself reached a 19% organically growth in the quarter. We also saw sustained growth in consumer electronics with an increase in smart home products. In the quarter, we also had lower volumes in the hygiene area affected by inventory adjustment and lower market demands. Automotive contracted as expected. Summarizing this, it created a margin of 10.3% and we saw a negative impact from the price increases the raw material similar to the medical but also a favorable product mix with a higher proportion of materials sales in the quarter.

Good morning Per-Ola Holmström CFO and Group Financial Highlights on page 10. Net sales was 2 billion 454 millions in the quarter, a 4% growth. Less currency headwinds than recent quarters on group level 1.5%. Operating profit EBIT A amounted to 247 millions compared to 277. The EBITDA margin was 10.1% compared to 11.6%, and negatively affected mainly by price increases for raw materials driven by higher oil prices. The effect is estimated to almost 20 millions, most part within engineered. As planned during the first six months, We have had resources ahead of starting production and during ramp-up in a number of projects negatively affecting medical, estimated to almost 10 million SEK in the quarter. On group level, a one-off surveillance cost affected by six millions in the quarter. Net investments decreased to 133 millions compared to 188. As planned, most of the capex for the Hungarian expansion is paid, and as we have commented earlier, capex will be on a lower level going forward. 600 to 650 million SEK is expected for the full year. Cash flow after investments was then higher, 154 millions compared to 128. Net financial liabilities, excluding pension and lease liabilities, totaled 1,055,000,000, resulting in net financial liabilities in relation to EBTA of 0.7 times, giving flexibility. Return on capital employed decreased to 13.3% compared to 14.2% for the full year 2025. as the profitability was slightly lower and we now have a balance sheet loaded for higher speed.