Strong earnings and high return on capital

In today’s interim report, Nolato reports strong earnings and a high return on
capital for the second quarter. Sales increased by 11% to SEK 1,164 million
(1,046) and operating income (EBITA) increased by 37% to SEK 111 million (81).
Earnings per share increased to SEK 2.97 (2.05) and the cash flow after
investments amounted to SEK 120 million (56, excluding acquisitions).
“All our three business areas have increased the operating income and show high
margins, which feels very satisfying,” comments Nolato’s President and CEO Hans
Porat.

The Nolato Medical business area continued its growth and increased sales by 3%
to SEK 323 million (315). Adjusted for currency, the increase was 8%. The
operating income (EBITA) increased to SEK 42 million (36) and the EBITA margin
increased to 13.0% (11.4).

“The margin has been affected positively by a favourable product mix,” says Hans
Porat.

As communicated earlier in July, Nolato Medical is expanding its Chinese
production plant with a further 2,200 sqm. The extension is being conducted to
secure resources for growth in China.

The Nolato Telecom business area increased sales by 28% to SEK 541 million
(423). The operating income (EBITA) increased to SEK 43 million (21) and the
EBITA margin to 7.9% (5.0).

“The volumes have been very high, especially during the first part of the
quarter, where several products have had a very strong demand,” says Hans Porat.
The start-up of new customer projects has been carried out as planned and
gradually replaces the existing product portfolio.

The sales of the Nolato Industrial business area amounted to SEK 300 million
(309). The operating income (EBITA) amounted to SEK 30 million (29) and the
EBITA margin was a strong 10.0% (9.4).

“Volumes have been stable during the quarter,” comments Hans Porat. A reduced
cost level and a profitable product mix have had a positive margin effect.

Nolato’s financial position continues to be good. At the turn of the half-year,
net debt amounted to SEK 128 million (406) and the equity/assets ratio was 42%
(41). Return on capital employed was 23.0% (15.9) and return on shareholders’
equity was 24.2% (15.2).

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For further information, please contact:
Hans Porat, President and CEO, +46431 442294
Per-Ola Holmström, CFO, +46431 442293

The Nolato Group is a high-tech developer and manufacturer of polymer products
and product systems for leading customers in medical devices,
telecommunications, hygiene, automotive products and other selected industrial
sectors. Nolato’s shares are quoted on the Mid Cap list on NASDAQ OMX Stockholm,
where they are included in the Industrials sector. www.nolato.com

The information contained in this press release is information which Nolato must
make public in accordance with the Swedish Securities Market Act and/or the
Swedish Financial Instruments Trading Act. The information was submitted for
publication 19 July 2013, at 3 pm.