Note Financial Performance Second Quarter 2022

Financial performance in April-June 

• Sales increased by 40% to SEK 898 (642) million. Adjusted for acquisitions and currency effects growth was 24%. 
• Operating profit was up by 39% to SEK 83 (60) million.
• Operating margin was 9.3% (9.3%).
• Profit after financial items was up by 22% to SEK 72 (58) million.
• Profit after tax increased by 24% to SEK 59 (47) million, corresponding to SEK 2.02 (1.66) per share.
• Cash flow after investments amounted to SEK -4 (-53) million, or SEK -0.14 (-1.85) per share. Cash flow was negatively affected by the continued challenges in the market for electronic components. Last year’s cash flow was also negatively impacted by the SEK -68 million payment for the acquisition of iPRO of the UK. 

Events in January-June • Major successes on the market

After several years of successful new business sales, NOTE is in a clear expansion phase. Viewed over the last three years, average yearly organic growth has been over 20%. In Q1, NOTE communicated that its partnership with a well-established international customer in its Industrial segment was performing significantly above estimates—sales of over SEK 130 million are already expected this year. Also in Industrial, NOTE communicated a new partnership in June with a world leader in cutting and welding. Serial production will begin in the autumn, and the current partnership is expected to result in an annualised level of some SEK 70 million. In Communication, which has been negatively impacted by the pandemic in recent years, high order intake is expected to generate record sales in 2022—growth year to date is 53%. Several new, high-potential projects in Medtech have recently entered serial production, in Sweden and internationally. Last year’s successful acquisition of iPRO of the UK has advanced positioning in Greentech as planned—NOTE has several expansive customers in the green technology transition in serial production, with products including charging points for electric vehicles. Interim Report January–June 2022