Strengthened margins within all business areas


In today’s interim report for the first half of the year, Nolato reports
operating income (EBITA) of SEK 194 million (233), and an operating margin of an
impressive 10.2% (9.6). The strong margin is explained by a continued focus on
efficiency improvements, a favourable product mix as well as a flexible cost
structure, not least in Asia. The Group’s sales amounted to SEK 1,897 million
(2,418).
“Strong profitability has been and continues to be the highest priority, and
with a strong financial position we have the prerequisites for investing for the
future and continue developing together with our customers.” Nolato Medical has
completed a new factory in China and the expansion of the plant in Hungary is
running according to plan.” Furthermore, during the quarter we started a
production unit within Nolato Telecom in Malaysia for electromagnetic shielding,
EMC,” says CEO Hans Porat.

Nolato’s business model is based on a close, long-term and innovative
collaboration that creates added value for both customers and shareholders. The
strategic work of recent years has resulted in, among other things, market
positions moving forward.

“Within Nolato Medical we are continuing our investment in further profitable
growth, both organic and through acquisitions. Within Nolato Telecom we will
strengthen our niche position with technically advanced solutions and within the
area electromagnetic shielding, EMC, while we will move forward the positions
with larger selected customers in Northern and Central Europe within Nolato
Industrial,” says CEO Hans Porat.

At the end of the second quarter, the equity/assets ratio amounted to 51% (42)
and the net financial debt to SEK 37 million (128).

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

Nolato is a Swedish group operating in Europe, Asia and North America. Sales in
2013 amounted to SEK 4.5 billion. We develop and manufacture products made from
polymer materials such as plastic, silicone and TPE for leading customers in
medical technology, pharmaceuticals, telecoms, automotive, hygiene and other
selected industrial sectors. Nolato shares are listed on NASDAQ OMX Stockholm,
where Nolato is a Mid Cap company in the Industrials sector.

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 21 July 2014 at 2.30 pm.

www.nolato.com

Attachments

07216401.pdf nolato_140721-pm-en.pdf