NOTE’s Interim Report January–June 2020

Financial performance April–June
• Sales increased by 14% to SEK 500 (437) million.
• Operating profit was up by 36% to SEK 42 (31) million.
• Operating margin widened by 1.3 percentage points to 8.3% (7.0%).
• Profit after net financial items increased to SEK 42 (29) million.
• Profit after tax increased by 44% to SEK 34 (23) million, corresponding to SEK 1.20 (0.84) per share.
• Cash flow after investments amounted to SEK 64 (-24) million, or SEK 2.26 (-0.85) per share.

Financial performance January–June
• Sales increased by 16% to SEK 975 (843) million.
• Operating profit was up by 31% to SEK 75 (57) million.
• Operating margin widened by 0.9 percentage points to 7.7% (6.8%).
• Profit after net financial items increased to SEK 70 (53) million.
• Profit after tax increased by 29% to SEK 56 (44) million, corresponding to SEK 2.01 (1.56) per share.
• Cash flow after investments increased to SEK 127 (-22) million, or SEK 4.48 (-0.79) per share.

CEO’s comment Record-breaking development for NOTE
“NOTE continues to develop strongly. During the first half of the year, sales increased organically by 16% to SEK 975 million. It is very gratifying that we continue to grow our business, despite a weaker market situation as a result of the current pandemic. The main reason for this is that we have won new projects with our existing customers and had a strong influx of new customers. During Q2, we have won our two largest deals ever, where batch production will start during Q3.

In terms of earnings, our positive trend continued, mainly due to growth, good cost development as a result of implemented efficiency programmes and a strong development in Western Europe, operating profit increased by 31% to SEK 75 million.

It is also gratifying that cash flow continued to develop strongly during the first half of the year. In the last 12 months, it amounts to SEK 224 million, corresponding to SEK 7.89 per share.

It is very satisfying that, despite these turbulent times, we are delivering record levels in terms of sales, operating profit, operating margin and cash flow. NOTE has a strong operational momentum and our order backlog continues to grow. During the first half year, it was some 20% higher than last year, which gives continued optimism for the future", says Johannes Lind-Widestam, CEO and President.

NOTE’s Interim Report for January–June is now available in PDF format on the corporate web site, www.note.eu, and attached to this message. Today at 10.00 CET, NOTE organises a telephone conference for analysts, media and investors, where CEO and President Johannes Lind-Widestam presents the report. The Interim Report for January–September will be published on 19 October.

For more information, please contact:
Johannes Lind-Widestam, CEO and President, tel. +46 (0)70 541 7222
Henrik Nygren, CFO, tel. +46 (0)70 977 0686

About NOTE
NOTE is one of northern Europe’s leading EMS partners, producing PCBAs, subassemblies and box build products. NOTE’s offering covers the complete product lifecycle, from design to after-sales. NOTE has a presence in Sweden, Finland, the UK, Estonia and China. Net sales in the last 12 months were SEK 1,892 million; the group has approximately 1,100 employees. NOTE is listed on Nasdaq Stockholm. For more information, please go to www.note.eu.

This information is information that NOTE AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of Johannes Lind-Widestam, at 8:30 a.m. CET on 13 July 2020.

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About Us

NOTE is one of northern Europe's leading EMS partners, producing PCBAs, subassemblies and box build products. NOTE's offering covers the whole product lifecycle, from design to after-sales. NOTE has a presence in Sweden, Finland, the UK, Estonia and China. NOTE is listed on Nasdaq Stockholm. For more information, please go to www.note.eu.