Strong earnings and high margin

In today’s quarterly report for the third quarter, Nolato reports operating
income (EBITA) of SEK 112 million (103), and an operating margin of an
impressive 10.2% (9.2). The strong margin is explained by a continued focus on
efficiency improvements, a renewed product portfolio and a flexible cost
structure, not least in Asia. The Group’s sales amounted to SEK 1,095 million
(1,119).
“Our streamlining work and profitability focus has been fruitful. Despite the
slightly lower sales, the Group’s operating margin is one whole percentage point
higher compared to last year. At the same time we have completed new production
capacity in China, Hungary and Malaysia for future growth,” 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.

“With a strong financial position, we have the prerequisites to invest in both
organic and acquired growth within Nolato Medical, while we will grow with large
selected customers in northern and central Europe within Nolato Industrial.
Within Nolato Telecom we are continuing to strengthen our niche position with
good profitability through technically advanced solutions and continued
investments in electromagnetic shielding, EMC,” says Hans Porat.

At the end of the third quarter, the equity/assets ratio amounted to 50% (45)
and the net financial debt to SEK 43 million (75).

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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 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 28 October 2014 at 2.30 pm.

www.nolato.com