NOTE’s Year-end Report 2022

Financial performance in Q4 (October-December)
• Sales increased by 28% to SEK 1,038 (814) million. Adjusted for acquisitions and currency effects, organic growth was 8%. Re-invoicing of extraordinary
  cost increases on electronic components had no significant impact on growth as the corresponding re-invoicing also occurred during the fourth quarter of the
  previous year.
• Operating profit was SEK 129 (87) million and corresponded to an operating margin of 12.3% (10.6%). Adjusted for the SEK +15 million profit effect linked to reversal of 50% of
  the SEK 30 million doubtful debt reported in Q3, and for currency revaluations of operating assets and liabilities in foreign currencies as well as re-invoicing of extraordinary cost
  increases of electronic components essentially without margin, the underlying operating profit increased by 41% to SEK 111 (79) million. The corresponding underlying operating
  margin increased by 1.0 percentage points to 11.2% (10.2%).
• Profit after financial items was SEK 123 (82) million.
• Profit after tax amounted to SEK 99 (68) million, corresponding to SEK 3.44 (2.39) per share.
• Cash flow after investments amounted to SEK 23 (-44) million, or SEK 0.79 (-1.54) per share. The quarter’s cash flow includes a SEK -16 million payment of the contingent
  consideration for the acquisition of iPRO of the UK. Cash flow for the corresponding quarter of the previous year was impacted by a SEK -12 million payment for the acquisition of
  iPRO of the UK. Adjusted for acquisition-related payments, cash flow for the period was SEK +39 (-32) million.

Financial performance in January–December
• Sales increased by 39% to SEK 3,687 (2,643) million. Adjusted for acquisitions and currency effects, organic growth was 20%. Approximately 5% of sales consisted of re-
  invoicing of extraordinary cost increases on electronic components.
• Operating profit was SEK 345 (251) million which corresponded to an operating margin of 9.3% (9.5%). Adjusted for the doubtful debt of SEK -15 million net, and adjusted for
  currency revaluations of operating assets and liabilities in foreign currencies as well as re-invoicing of extraordinary cost increases of electronic components essentially without
  margin, the underlying operating profit increased by 49% to SEK 372 (249) million. The corresponding underlying operating margin increased by 1.0 percentage points to 10.6%
  (9.6%).
• Profit after financial items was SEK 311 (237) million.
• Profit after tax amounted to SEK 254 (194) million, corresponding to SEK 8.79 (6.82) per share.
• Cash flow after investments was SEK -31 (-142) million, or SEK -1.07 (-4.97) per share. The year’s cash flow includes the SEK -17 million payment for the acquisition of NOTE
  Herrljunga, and a SEK -16 million payment of a contingent consideration for the acquisition of iPRO of the UK in the previous year. Cash flow in the previous year was impacted
  by the SEK -80 million payment for the acquisition of iPRO of the UK. Adjusted for acquisition-related payments, cash flow for the year was SEK +2 (-62) million.

Dividend
To ensure maximum financial freedom to act during the sector’s current structural transformation, the Board of Directors is proposing that no dividend is paid for 2022.

CEO’s comment – Strong progress for NOTE in the year, with high growth and record operating profit despite challenges on the market.
“NOTE's operations developed at a record high level during the year. Sales growth for 2022 amounted to 39%. In Q4, we saw our strongest sales figure to date when we as a group for the first time reached over 1 billion in a single quarter. The fourth quarter's turnover of SEK 1,038 million represented a growth of 28%.

NOTE also developed strongly in terms of profitability during the year. The underlying operating profit for 2022 increased by 49% to SEK 372 million. The underlying operating margin increased to 10.6%, an increase of 1.0 percentage points. In Q4, the underlying operating profit amounted to MSEK 111 (79) and corresponded to an underlying operating margin of 11.2% (10.2%). The strong development comes despite a challenging market, linked, among other things, to a continued uncertain market for electronic components.

We have a strong order position with several exciting customers and projects in the start-up phase, and we see good opportunities to continue our positive development. Based on the current market situation, we see good opportunities to reach a turnover for Q1 of SEK 1 billion, which corresponds to a growth of 25%. For the full year 2023, we repeat our guidance for sales of at least SEK 4 billion. We’re well positioned to achieve our long-term targets for growth, profitability and sustainability”, says Johannes Lind-Widestam, CEO and President.

NOTE’s Year-end Report for 2022 is now available in PDF format at the web site, www.note-ems.com, and attached to this message. Today at 10:00 a.m. CET NOTE will arrange a presentation for analysts, media and investors where the report will be presented by NOTE’s CEO and President Johannes Lind-Widestam. The Interim Report for January–March will be published on 19 April.

For more information, please contact:
Johannes Lind-Widestam, CEO and President, tel. +46 (0)70 541 7222 
Frida Frykstrand, CFO, tel. +46 (0)70 462 0939

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 3,687 million; the group has approximately 1,400 employees. NOTE is listed on Nasdaq Stockholm. For more information, please go to www.note-ems.com.

This information is such information that NOTE AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of Johannes Lind-Widestam, at 8:30 a.m. CET on 30 January 2023.

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