NOTE's interim report Q1 2025

Financial performance in January-March
- Sales totalled SEK 1 003 (1 055) million. Organic growth was -5%.
- Operating profit totalled SEK 93 (91) million. Adjusted operating profit totalled SEK 100m (93), adjusted for revaluations of operating assets and liabilities in foreign currencies and for a provision of SEK 18m for the restructuring of the UK operations in the first quarter of this year.
- The operating margin totalled EUR 9.21 million (EUR 8.61 million). The adjusted operating margin was 10.01% (8.81%).
- Profit after net financial items totalled SEK 82 (78) million.
- Profit after tax totalled SEK 65 (64) million, corresponding to SEK 2.27 (2.20) per share.
- Adjusted for items affecting comparability, such as property investments in Torsby, operating cash flow totalled SEK 178 million (84). Total cash flow after investments totalled SEK 156 (84) million, corresponding to SEK 5.48 (2.90) per share.

CEO comment - NOTE is proud to continue to deliver sales in line with our expectations, a profitability that is higher than the industry and a very strong cash flow!

"Sales for the quarter totalled SEK 1,003 million and we are proud to deliver sales in line with our guidance even in uncertain times. We delivered growth of 23% in the Security & Defence segment, which we are reporting as a separate customer segment from this year in order to clarify our exposure and clarify the strategic focus we have on these customers. The Industrial segment was negatively affected by, among other things, a weak development in the UK market, which we have seen for some time. As part of this, we have initiated a restructuring programme where we are adjusting staffing and also consolidating our four factories in England to three.

Growth brings profitability, but we see that our continuous work on streamlining and adapting resources is resulting in stronger profitability, despite the market challenges temporarily holding back growth. We see it as a sign of strength that despite the challenges we have had in our UK operations, we delivered an underlying profitability for the quarter of 10.0%.

Operating cash flow for the quarter totalled SEK 178 million. Our continued high profitability and our hard work on rationalising tied-up working capital are the factors behind this. NOTE's financial situation remains very favourable.

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

NOTE's Interim Report for Q1 2025 is available from today in PDF format on its website, www.note-ems.com, and is attached to this press release. NOTE is organising a presentation for analysts, media and investors at 10:00 a.m. CET today, where President and CEO Johannes Lind-Widestam will present the report. The Interim Report for January-June will be presented on 14 July.

About NOTE
NOTE manufactures printed circuit boards (PCBA), sub-assemblies and complete products (box build). NOTE is a competitive electronics manufacturer and a stable business partner to customers with high standards. Its products are found in complex systems for electronic control, monitoring and security, for example.

The business model is based on offering advanced manufacturing, customised logistics solutions and advice at the best possible total cost through long-term customer relationships and partnerships. The customer offering covers the entire product life cycle, from design to aftermarket. Customers are primarily large companies operating on the global market, but also companies with their primary sales in northern Europe.

NOTE is established in Sweden, Finland, the UK, Estonia, Bulgaria and China. Sales in the last 12 months totalled SEK 3,849 million and the group has some 1,450 employees. NOTE is listed on Nasdaq Stockholm. For more information, please visit www.note-ems.com.

NOTE Interim report Q1 2025