Continued investment and solid financial position

Today’s report by Nolato for the third quarter of 2016 shows continued
investment in acquisitions and capacity.

  · Sales totalled SEK 1,036 million (1,084)
  · Operating profit (EBITA) was SEK 104 million (142)
  · The EBITA margin was 10.0% (13.1)
  · Profit after tax was SEK 79 million (105)
  · Earnings per share were SEK 3.00 (3.99)
  · Swiss company Treff AG acquired after end of period

 Nolato Medical’s sales increased to SEK 395 million (368), which when adjusted
for currency represents an increase of 11%. Operating profit (EBITA) totalled
SEK 52 million (51), with an EBITA margin of 13.2% (13.9).

 “Sales have increased primarily within Medical Devices as a result of strong
volume growth and ramp-ups of new products,” commented Christer Wahlquist.

 Nolato Telecom’s sales amounted to SEK 343 million (434), which when adjusted
for currency is a drop of 21%. Operating profit (EBITA) totalled SEK 29 million
(63), with an EBITA margin of 8.5% (14.5).

 “Last year volumes were very strong for Nolato Telecom owing to high demand for
customers’ mobile phone models. Combined with a favourable product mix, this led
to an exceptionally strong operating margin in the third quarter of 2015,” said
Christer Wahlquist. “Sales have increased compared with the second quarter
2016.”

 Nolato Industrial’s sales amounted to SEK 301 million (282); adjusted for
currency, sales increased by 6%. Operating profit totalled SEK 30 million (30),
with an EBITA margin of 10.0% (10.6).

 “Volumes in the automotive and hygiene segments showed positive performance,”
noted Christer Wahlquist. “However, higher costs linked to new project start-ups
have had a negative impact on the margin.”

 Cash flow declined during the third quarter to SEK 19 million (120), excluding
acquisitions. The fall is primarily due to increased working capital
requirements and higher investments compared with the year-earlier period. The
Group’s financial position remains strong, with net debt of SEK 51 million (+16)
and an equity/assets ratio of 58% (53).

 In the third quarter, Nolato acquired Polish Grizzly Medical Sp. z o.o. and
after the end of the period, Swiss company Treff AG, which has been previously
announced. Grizzly Medical has annual sales of SEK 25 million, with healthy
profitability. The purchase price was SEK 14 million. Treff has sales of just
over SEK 450 million, with an EBITDA margin of around 11.5%. The purchase price
was SEK 418 million. Further details of these acquisitions can be found at
nolato.se.

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For further information, please contact:
Christer Wahlquist, President and CEO, +46 (0)705 804848
Per-Ola Holmström, CFO, +46 (0)705 763340

Nolato is a Swedish group with operations in Europe, Asia and North America. We
develop and manufacture products in polymer materials such as plastic, silicone
and TPE for leading customers within medical technology, pharmaceuticals,
telecom, automotive, hygiene and other selected industrial sectors. Nolato’s
shares are listed on Nasdaq Stockholm in the Mid Cap segment, where they are
included in the Industrials sector.

This information is information that Nolato AB is obliged to make public
pursuant to the EU Market Abuse Regulation. The information was submitted for
publication, through the agency of the contact person set out above, at 2.30 pm
CET on 25 October, 2016.

www.nolato.com