NOTE's interim report Q2 2025

Financial performance in April-June
- Sales totalled SEK 980 (1 012) million. Organic growth was 0% adjusted for currency.
- Operating profit totalled SEK 101 (99) million. Adjusted operating profit totalled SEK 94 (97) million, adjusted for revaluations of operating assets and liabilities in foreign currencies.
- The operating margin totalled EUR 10.31 million (EUR 9.81 million). The adjusted operating margin was 9.61% (9.61%).
- Profit after net financial items totalled SEK 94 (86) million.
- Profit after tax totalled SEK 76 (68) million, corresponding to SEK 2.65 (2.34) per share.
- Adjusted for items affecting comparability, such as investments in the property in Torsby and acquisition-related payments in the comparative period, operating cash flow totalled SEK 82 (157) million. Total cash flow after investments totalled SEK 58 (137) million, corresponding to SEK 2.04 (4.73) per share.

Financial performance in January-June
- Sales totalled SEK 1,983 (2,067) million. Organic growth was -2% adjusted for currency.
- Operating profit totalled SEK 194 (190) million. Adjusted operating profit totalled SEK 194m (189), adjusted for revaluations of operating assets and liabilities in foreign currencies and for a provision of SEK 18m for restructuring of the UK operations in the first quarter of this year.
- The operating margin totalled EUR 9.71 million (EUR 9.21 million). The adjusted operating margin was 9.81% (9.21%).
- Profit after net financial items totalled SEK 176 (164) million.
- Profit after tax totalled SEK 141 (132) million, corresponding to SEK 4.93 (4.54) per share.
- Adjusted for items affecting comparability, such as investments in the property in Torsby and acquisition-related payments in the comparative period, operating cash flow totalled SEK 260 million (241). Total cash flow after investments totalled SEK 214 (221) million, corresponding to SEK 7.51 (7.63) per share.

CEO comment - NOTE continues to invest for growth and profitability. We're well positioned to capitalise on the opportunities available on the market.

" The first half of 2025 has been characterised by a changing world. With a clear strategy, strong customer relationships and an organisation with a proven ability to deliver in all situations, we continue to build for the future. We invest, expand and develop - even when the world around us is uncertain. Our customers are placing ever higher demands on quality, flexibility and efficiency - and we are meeting their requirements by continuing to strengthen our technology, our expertise and our production flows. The fact that sales per NOTE employee are continuously increasing is clear evidence that our initiatives are having an effect.

In the second quarter, we delivered sales of SEK 980 million, which is in line with our guidance, despite a continued weak market. This is a sign of strength and we are seeing growth in virtually all our markets except the UK.

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. In the second quarter, we delivered an underlying operating margin of 9.6%.

We are seeing continued strong cash flows from operations, and operating cash flow for the quarter was SEK 82 million, and accumulated for the year, it was SEK 260 million. NOTE's financial position remains very good, and we have both stability and room for manoeuvre to take advantage of the opportunities available on the market.

Year over year, we expect a gradual strengthening of sales in the second half of the year, but we have reduced the range of our full-year sales estimate to SEK3.9-4.1bn, from SEK3.9-4.3bn previously. We reiterate our estimate of an operating margin in the range of 9.5-10.5%. We see the second half of this year as a step in our continued growth journey and we continue to invest to meet our customers” expansion in the coming years.", says Johannes Lind-Widestam, President and CEO.

NOTE's Interim Report for Q2 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 conference call 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-September will be presented on 16 October.

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.

Interim report Q2 2025