NOTE's report for the second quarter 2024

Financial performance in April-June
- Sales totalled SEK 1 012 (1 078) million. Adjusted for acquisitions and currency effects, organic growth was -10%.
- Operating profit totalled SEK 99 (106) million. Adjusted operating profit totalled SEK 97 (107) million, adjusted for revaluations of operating assets and liabilities in foreign currencies.
- The operating margin totalled 9.81% (9.81%). The adjusted operating margin, adjusted for currency revaluations, amounted to 9.61% (10.01%).
- Profit after net financial items totalled SEK 86 (96) million.
- Profit after tax totalled SEK 68 (79) million, corresponding to SEK 2.34 (2.73) per share.
- Adjusted for acquisition-related payments during the quarter, operating cash flow after investments was SEK 154 (28) million. Total cash flow after investments, including acquisitions, amounted to SEK 137 (-2) million, corresponding to SEK 4.73 (-0.07) per share.

Financial performance in January-June
- Sales totalled SEK 2,067 (2,129) million. Adjusted for acquisitions and currency effects, organic growth was -7%.
- Operating profit totalled SEK 190 (218) million. Adjusted operating profit totalled SEK 189m (214), adjusted for revaluations of operating assets and liabilities in foreign currencies.
- The operating margin was EUR 9.21 million (EUR 10.21 million). The adjusted operating margin, adjusted for currency revaluations, amounted to 9.21 CGT (10.11 CGT).
- Profit after net financial items totalled SEK 164 (200) million.
- Profit after tax totalled SEK 132 (164) million, corresponding to SEK 4.54 (5.65) per share.
- Adjusted for acquisition-related payments during the period, operating cash flow after investments was SEK 238 million (100). Total cash flow after investments, including acquisitions, amounted to SEK 221 (47) million, corresponding to SEK 7.63 (1.62) per share.

CEO comment -We see continued strong growth ahead even if this has been delayed somewhat against what our customers have signalled. Our long-term plan remains firm and we continue to expand for the growth we see ahead.

"The second quarter developed in line with the first quarter of the year. We achieved sales of SEK 1,012 million for Q2, which was below our expectations and slightly lower than we had guided for. Demand continues to be affected both by the weaker economy, which has meant temporary postponements of projects from our customers, and inventory adjustments at the customer level. We see continued strong growth ahead, although this has been delayed somewhat compared to what our customers expected and signalled. Our long-term plan remains firm and we continue to expand for the growth we see ahead.

In the second quarter, an underlying operating margin of 9.6% was achieved. Although we have higher ambitions for our operating margin, we see it as a strength that we continue to strengthen our operating margin from the last few quarters and despite not getting the volume we planned for. Growth generates profitability and when the growth that our customers have signalled and placed orders for is postponed, it naturally has an impact on profitability as our factories are staffed and resourced based on a different volume. We are continuously working on efficiency improvements and see that there is still potential. When volumes from our customers increase again, this will also have an effect in terms of stronger profitability.

The strong cash flow continued in Q2 and operating cash flow totalled SEK 154 million. This was in line with our plans and is a result of good profitability and a reduction of overstocks built up during the shortage situation.

We expect a gradual strengthening towards the end of the year and estimate that sales for the full year 2024 will be in the range of SEK 4.1-4.4bn with an operating margin in the range of 9.5-10.5%.” 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 2024