NOTE

Financial performance in July-September
• Sales amounted to SEK 809 (1,034) million. Adjusted for acquisitions and currency effects, organic growth was -20%.
• Operating profit was SEK 64 (94) million. Adjusted operating profit was SEK 67 (94) million, adjusted for revaluations of operating assets and liabilities in foreign currencies, as well as the year’s provision to the restructuring reserve.
• The operating margin amounted to 8.0% (9.1%). The adjusted operating margin was 8.3% (9.0%), adjusted for currency revaluations and the year’s provision to the restructuring reserve.
• Profit after financial items was SEK 55 (80) million.
• Profit after tax amounted to SEK 43 (65) million, corresponding to SEK 1.52 (2.24) per share.
• Adjusted for acquisition-related payments made in the quarter, operating cash flow after investments was SEK 157 (34) million. Total cash flow after investments, including acquisitions, amounted to SEK 120 (-57) million, or SEK 4.21 (-1.97) per share.

Financial performance in January-September
• Sales amounted to SEK 2,876 (3,163) million. Adjusted for acquisitions and currency effects, organic growth was -11%.
• Operating profit was SEK 254 (312) million. Adjusted operating profit was SEK 256 (308) million, adjusted for revaluations of operating assets and liabilities in foreign currencies, as well as the year’s provision to the restructuring reserve.
• The operating margin amounted to 8.8% (9.9%). The adjusted operating margin was 8.9% (9.7%), adjusted for currency revaluations and the year’s provision to the restructuring reserve.
• Profit after financial items was SEK 219 (280) million.
• Profit after tax amounted to SEK 175 (229) million, corresponding to SEK 6.06 (7.89) per share.
• Adjusted for acquisition-related payments made in the period, operating cash flow after investments was SEK 398 (135) million. Total cash flow after investments, including acquisitions, amounted to SEK 341 (-10) million, or SEK 11.97 (-0.35) per share.

CEO’s comment – We think achieving underlying profitability of 8.3% in the quarter is a sign of strength. We’re proud that we’ve succeeded in maintaining high profitability by continuously adapting our business, even when we’re not getting the volumes we planned for.

”Third-quarter sales did not progress as we anticipated and were significantly below our expectations. Sales in Q3 were SEK 809 million, equivalent to negative organic growth of 20%. We’re far from satisfied with this, and we know we have a stronger customer portfolio than it suggests.

We think achieving underlying profitability of 8.3% in the quarter is a sign of strength. Growth generates profitability, and when the growth our customers have been signalling and placed orders for is deferred, this obviously has an impact. Even if our ambitions for operating margin are higher, we’re proud that by continuously adapting our business, we succeeding in keeping our margin over 8% despite us not getting the volumes we planned for. We’re working continuously on rationalising, and still see potential here.

It’s gratifying that our operating cash flow was SEK 157 million in the third quarter, which is also in line with plan. The corresponding number for the first three quarters of the year was SEK 398 million. We expect our strong cash flows to continue going forward. NOTE’s financial situation remains really positive with an equity to assets ratio of 49% and net debt of SEK 203 million (adjusted for leased properties under IFRS 16).

We see a brisk finish to the year and reiterating our guidance of sales for the fourth quarter of SEK 975–1,025 million and a minimum operating margin of 9.5%.” says Johannes Lind-Widestam, CEO and president.

NOTEs Interim Report for Q3 2024 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 Year-end Report for January-December will be published on January 27, 2025.