Earnings remain strong with solid return on capital

Nolato reports sustained strong earnings and a solid return on capital in its Q3
2013 interim report released today. Group sales rose by 12% to SEK 1,119 million
(999), with operating profit (EBITA) up 23% to SEK 103 million (84). Earnings
per share for the past 12-month period rose to SEK 11.25 (6.70).
“We’re very pleased indeed that our strong performance continued in the third
quarter,” says President and CEO of Nolato, Hans Porat.

Sales of the Nolato Medical business area rose 8% to SEK 310 million (288),
which was well in line with market growth. Operating profit (EBITA) increased to
SEK 41 million (32), and the EBITA margin rose to 13.2% (11.1).

“Most of the business area’s customer segments enjoyed solid volumes,” says Hans
Porat. “The margin was positively affected by a favourable product mix.”

Sales of the Nolato Telecom business area rose 16% to SEK 516 million (444).
Operating profit (EBITA) totalled SEK 35 million (35), with an EBITA margin of
6.8% (7.9).

“The gradual renewal of the product portfolio in the second half of the year,
with a slightly higher proportion of materials, affected the margin,” comments
Hans Porat.

Sales of the Nolato Industrial business area rose 9% to SEK 293 million (268).
Operating profit (EBITA) climbed to SEK 33 million (24), and the EBITA margin to
a very strong 11.3% (9.0).

“Volumes were stable and during the holiday period, there was higher demand this
year than in the same period last year. Combined with high productivity and a
favourable product mix, this gave a positive effect on the margin,” says Hans
Porat.

Nolato’s Board resolved at its meeting today on the extension of the Hungarian
factory by a further 3,700 square metres in order to enable further future
expansion.

Nolato’s financial position remains strong. Return on capital employed for the
past 12-month period was 25.5% (17.8). Net debt stood at SEK 75 million (323),
with an equity/assets ratio of 45% (43).

The year-end report for 2013 will be released on 4 February 2014.

The AGM will be held on 28 April 2014.

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For further information, please contact:
Hans Porat, President and CEO, +46 (0)705 517550
Per-Ola Holmström, CFO, +46 (0)705 763340

Nolato is a high-tech developer and manufacturer of polymer products for leading
customers in medical technology, telecommunications, hygiene, automotive and
other selected industrial sectors.

Its B shares are listed on the NASDAQ OMX Stockholm. Nolato is a Mid Cap company
in the Industrials sector.

www.nolato.com

The information is such which Nolato AB is obliged to disclose under the Swedish
Securities Market Act and/or the Swedish Financial Instruments Trading Act. This
information was made public on 24 October 2013 at 2.30 pm.