NOTE

Financial performance in January-March
• Sales amounted to SEK 1,003 (1,055) million. Organic growth was -5%.
• Operating profit was SEK 93 (91) million. Adjusted operating profit was SEK 100 (93) million, adjusted for revaluations of operating assets and liabilities in foreign currencies, as well as an SEK 18 million provision for restructuring the UK operations in the first quarter of this year.
• The operating margin amounted to 9.2% (8.6%). The adjusted operating margin was 10.0% (8.8%).
• Profit after financial items was SEK 82 (78) million.
• Profit after tax amounted to SEK 65 (64) million, corresponding to SEK 2.27 (2.20) per share.
• Adjusted for items affecting comparability, such as property investments in Torsby, Sweden, operating cash flow amounted to SEK 178 (84) million. Total cash flow after investments amounted to SEK 156 (84) million, or SEK 5.48 (2.90) per share.

CEO’s Comment - NOTE is proud to continue reporting sales in line with our expectations, profitability above the sector and exceptionally strong cash flow!

”Quarterly sales were SEK 1,003 million, and we’re proud of being able to generate sales consistent with the guidance we issued in these uncertain times. We achieved growth of 23 % in the Security & Defence segment. To clarify the scale of our exposure to this segment and highlight strategic initiatives for these customers, we’re reporting this as a separate segment from this year. The industrial segment faced challenges, among other factors, due to slow progress on the UK market which we’ve seen for some time. As a result, we initiated a restructuring programme, adapting our staffing and consolidating four plants in the UK into three.

Growth generates profitability, but we’re seeing how our continuous efforts to rationalise and adapt our resources are paying off in higher profitability, despite the market challenges restricting growth temporarily. We think it’s a sign of strength that we achieved underlying profitability for the quarter of 10.0% despite the challenges we’ve had in our UK operations.

Operating cash flow for the quarter was SEK 178 million. Our continued high profitability and hard work on rationalising working capital tie-up are the factors underlying our strong cash flow. NOTE’s financial position remains very favourable.

We expect sales for the second quarter of 2025 to be in the SEK 950-1,050 million interval. For the full year 2025, we’re reiterating our guidance of sales in the SEK 3.9-4.3 billion interval and an operating margin in the 9.5-10.5 % interval”, says Johannes Lind-Widestam, President and CEO.

NOTEs Interim Report for Q1 2025 is now available in PDF format on the corporate web site, www.note-ems.com, and attached to this message. Today at 10.00 CET, NOTE organizes a presentation for analysts, media and investors, where CEO and President Johannes Lind-Widestam presents the report. The Interim Report for January-June will be published on 14 July.