NOTE’s Interim Report January–March 2010

New savings measures charged to profit in Q1

Financial Performance January–March
• Sales reduced by 17% to SEK 273.5 (329.1) million of which 14 percentage points relate to the discontinued Telecom operation. In like-for-like terms, sales fell by 3%.
• Operating loss of SEK -52.5 (-8.6) million, including structural and other non-recurring costs of SEK 44 million.
• The operating margin was -19.2% (-2.6%).
• The loss after financial items was SEK -55.1 (-11.1) million.
• The loss after tax was SEK -43.7 (-8.4) million, or SEK -4.54 (-0.88) per share.
• Cash flow after investments was SEK 14.3 (-15.3) million, or SEK 1.49 (-1.59) per share.

Significant events in the year
• New CEO and President of NOTE: On 24 January, Göran Jansson, Deputy Chairman of the Board, was appointed as acting CEO and President of NOTE.
• Previously decided structural modifications begin: The Skellefteå operation was divested as planned at year-end 2009. Closure of production at Skänninge, Sweden and Tauragé, Lithuania began in the period. Costs for these and all other measures decided in the year amount to some SEK 40 million, all of which was charged to profit/loss for the period. The objective is for savings and rationalization measures to have a minimum annualised positive profit effect of SEK 50 million.
• Rights issue, 2010: An EGM (Extraordinary General Meeting) on 7 April resolved on a guaranteed new share issue of gross some SEK 87 million with preferential rights for NOTE’s shareholders. This issue is being conducted for NOTE to be financially secure for the structural transformation decided upon, and to exploit growth opportunities on the market.
• Nearsourcing generates new customers: New collaboration agreements signed with customers including Axell Wireless of the UK and HERNIS of Norway.
• Changes to ownership: Significant changes to NOTE’s major shareholders occurred early in the year. The biggest single shareholder is Investment AB Öresund, which holds 10.6% of NOTE’s shares.

NOTE’s Interim Report for January–March 2010 is now available in PDF format on the corporate web site, www.note.eu, and attached to this message.
The Interim Report for January–June will be published on 16 July.
The Interim Report for January–September will be published on 21 October.

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