Preliminary Report on 2000 Operations

Preliminary Report on 2000 Operations * Invoiced sales rose 34% to SEK 1,121 M (837). * Profit after net financial items amounted to SEK 123 M (36). * Earnings per share after full tax totalled SEK 13.29 (2.67). * It is proposed a doubling of the dividend to SEK 2.80 (1.40). * Continued successes in telecom equipment industry. Invoiced sales rose 53%. The segment accounted for 48% of the year's sales. * Valuable co-operation agreements signed with Ericsson, Flextronics and Alcatel. * Expansion of capacity in China, the UK and North America, and a new establishment in Estonia. Fourth quarter of 2000 The positive trend during the first nine months continued during the fourth quarter. Invoiced sales rose 37% to SEK 321 M, compared with the corresponding period in the preceding year (234). Order bookings totalled SEK 312 M (228), an increase of 37%. The increase in invoicing is attributable to favourable demand in largely all markets. The increasing volumes for networks in the telecom equipment industry continue to have a positive affect on Nefab. Nefab's invoicing to the telecom equipment industry during the quarter amounted to SEK 156 M (101), a 55% increase compared with the same period in 1999, with this segment thus accounting for almost half of sales. Other market segments were up during the quarter by about 23%. Profit, after net financial items, for the fourth quarter amounted to SEK 32 M (12). Full year 2000 Invoiced sales in the full year 2000 amounted to SEK 1,121 M (837), a 34% increase. Order bookings amounted to SEK 1,126 M (842), an increase of 34%. All geographic markets report growth exceeding 20%. Telecom equipment industry Nefab is strengthening its position as a world market leader for deliveries of packaging to the telecom equipment industry. Sales increased by 53% to SEK 534 M (349) and thus accounted for about 48% of Group sales. A co-operation agreement was signed in the beginning of the year with Ericsson. In addition to deliveries of complete packaging solutions, Nefab will assist Ericsson by providing consulting services in technical packaging matters. The agreement took effect on January 1, 2001. At the close of December, a co-operation agreement was reached with Flextronics International pursuant to deliveries of complete packaging solutions to Flextronics' industrial park in Gdansk, Poland. After year-end, a global agreement was signed with Alcatel. The agreement stipulates that Nefab, as first tier supplier, will provide Alcatel with know-how in the packaging area, and deliver complete packaging solutions. Nefab's deliveries to the telecom equipment industry pertain particularly to packaging of equipment for fixed and mobile networks. Less than 10% of the packaging is for telephones. The automotive industry and other market segments For the automotive industry segment, invoiced sales totalled SEK 95 M (75), an increase of 28%, corresponding to 8% of Group sales. During the year, important agreements were signed with two major cable assembly suppliers for delivery of packaging solutions. Both agreements pertain to return systems for deliveries between subcontractors and vehicle assembly plants in Europe. Invoiced sales to other market segments increased by 19% to SEK 492 M (413). Complete packaging solutions Increasingly, Nefab's product line is being converted from delivering a single packaging to offering the customer a total solution. The product thus becomes a combination of analysis, consultation and delivery of both in-house produced and purchased products. In line with this development, the operations of MK Specialemballage have been acquired. The company, which is located in Bålsta outside Stockholm in Sweden, produces and sells packaging materials to Swedish industry. Annual sales amount to about SEK 40 M. The products consist of customized cushioning and securing packaging assemblies produced from plastic foam. Earnings Profit after net financial items for the year amounted to SEK 123 M (36), of which SEK 7 M was the discounted current value of the surplus funds from SPP. The earnings improvement is attributable to higher sales volumes and the resulting increase in capacity utilization, with overhead costs remaining relatively stable. Improvements were noted in virtually all markets. Tax costs for the year have been reduced by SEK 3.6 M as a result of a ruling from the Administrative Court of Appeal regarding a case involving Nefab's income tax returns for 1989. The tax reduction corresponds to SEK 0.52 per share. Earnings per share amounted to SEK 13.29 (2.67). The surplus funds from SPP account for SEK 0.71 per share. The return on capital employed was 29.9% (12.4). Capacity and investments Group investments amounted to SEK 86 M (37). Of the investments, SEK 41 M pertained to machinery and SEK 45 M to buildings. Capacity utilization during the year was high in virtually all production units. To increase the capacity and ensure a high delivery precision, decisions were made to proceed with a number of investment projects. During October, the operations in China were moved to new premises. Consequently, capacity for the Asia market is doubled. A new plant is being constructed in Canada and will be in operation by February this year. The operations in the UK were moved in February to a more appropriate property. It was also decided to establish a new production unit in Estonia. It is projected that production can start up during autumn this year. In total, these four projects involve investments totalling upwards of SEK 100 M during a 12-month period. Financial position The equity/assets ratio on December 31 was 44.8% (44.1). Shareholders' equity per share amounted to SEK 47.82 (34.65). The Group's liquid assets on the same date amounted to SEK 121 M (91), including unutilized credit facilities. Outlook for 2001 It is expected that demand from customers in the telecom equipment industry will continue to increase during 2001, despite the nervousness that characterized the market at the beginning of the current year. Other market segments are more difficult to judge considering the overall trend in the economy. As a whole, continued strong growth is anticipated for 2001. Proposed dividend The Board is recommending to the Annual General Meeting a doubling of the per share dividend to SEK 2.80 (1.40). The total dividend will amount to SEK 19.3 M (9.7). [REMOVED GRAPHICS] Annual General Meeting The Annual General Meeting will be held in Alfta on Saturday, May 19, 2001 at 2:00 p.m. Information concerning the notification procedure prior to the Meeting is provided in the Annual Report, which will be mailed to the shareholders in early April. Financial reports Annual Report for 2000 April 2001 Interim Report, January-March 2001 May 4, 2001 Annual General Meeting May 19, 2001 Interim Report, January-June 2001 August 15, 2001 Interim Report, January-September 2001 October 31, 2001 For additional information, contact Lars-Åke Rydh, President and CEO, tel. +46-70-592 45 70, e-mail lars-ake.rydh@nefab.se, or Anna Stålenbring, CFO, tel. +46-70-814 23 44, e-mail anna.stalenbring@nefab.se Kettering, England, February 14, 2001 Lars-Åke Rydh President and CEO Information about Nefab Nefab delivers complete packaging solutions to international industrial groups, in mainly the telecom equipment and automotive industries. Nefab companies are located in Europe, North and South America and Asia. Annual sales amount to approximately SEK 1.1 billion. The Nefab share is listed on the OM Stockholm Exchange. Nefab AB (publ) Östra Storgatan 20 . P O Box 2184 . SE-550 02 Jönköping . Sweden Telephone +46(0)36-345050 . Telefax +46(0)36-150444 . Organization No. 556226-8143 Homepage: www.nefab.com . E-mail: info@nefab.se The registered office of the board of directors is in Ovanåker, Sweden [REMOVED GRAPHICS] [REMOVED GRAPHICS] ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2001/02/14/20010214BIT00830/bit0001.doc http://www.bit.se/bitonline/2001/02/14/20010214BIT00830/bit0001.pdf