Presentation on theme: "Georg Brunstam President and CEO Per-Ola Holmström CFO Teleconference Wednesday February 2, 2004 at 4 P.M. Year-end report 2003."— Presentation transcript:
Georg Brunstam President and CEO Per-Ola Holmström CFO Teleconference Wednesday February 2, 2004 at 4 P.M. Year-end report 2003
** Mission The Nolato Group is a high-tech systems supplier of polymer components to leading global customers in mobile telephony and other telecommunications, white goods, the automotive industry, medical technology and other industrial sectors.
** Group structure Nolato Telecom Nolato Industrial Sweden Nolato Medical Nolato Industrial Central Europe Four business areas Three profit centers
** Sales rose by 18 percent to SEK 963 M Telecom rose 35 % Industrial unchanged Medical rose 26 % Operating income rose to 39 SEK M (28), excluding nonrecurring items The operating margin improved to 5.6 % (4.8) Sales growth and high capacity utilization mainly at Telecom Income after financial items rose to 28 SEK M (23) Goodwill writedown of SEK 38 M related to Hungary in the Q4 accounts Strong cash flow after investments, SEK 134 M (-3) Negative exchange rate effects of SEK -6 M (+4) Q4 in brief
** Sales: Operating income* Operating margin* Return on capital employed* Cash flow after investments Income after financial items* Net income* Earnings per share* Number of employees Equity/assets ratio * Excluding nonrecurring items Group highlights Q4 Q4 - 2003 SEK 693 M SEK 39 M 5.6 % 11.0 % SEK 134 M SEK 28 M SEK 15 M SEK 0.55 2,353 31% Q4 - 2002 SEK 589 M SEK 28 M 4.8 % 4.5 % SEK -3 M SEK 23 M SEK 28 M SEK 1.00 1,992 33%
** Sales and earnings by quarter Income after financial items excluding nonrecurring items Sales SEK M
** Sales rose by 33 percent to SEK 2,671 M (2,011) Telecom rose 62% Industrial rose 4% Medical rose 6% Operating income rose to SEK 57 M (42) Restructuring expenses and goodwill writedowns were charged: SEK 55 M + SEK 38 M = SEK 93 M Costs of electricity SEK 13 M higher than in 2002 Foreign exchange losses SEK -6 M (-2) Income after financial items, SEK 6 M (36) Exchange differences in net financial items SEK -16 M (0) Earnings per share were SEK -1.35 (2.45) including nonrecurring items. If nonrecurring items are excluded, earnings per share were SEK 2.20 (0.70). Full year 2003
** Strong sales increase Customer products with high purchased-component value Good volume growth High capacity utilization Volume and sales growth favorable for tapes and shielding components Operating income improved by SEK 114 M Sales higher and restructuring projects completed Nolato Beijing developing better than plan Successive transfer of technology and development of expertise Expansion of personnel and production capacity Personnel reductions at Nolato Alpha as planned Nolato Telecom
** Market trends Strong growth in mobile telephony Continued trend toward low-cost production Continued price pressure Certain indications of component shortages in Q4 Improved demand for infrastructure components Nolato Telecom, continued
** Increased sales Good volume and high capacity utilization in Sweden Lower volume in Hungary Operating income improved by SEK 6 M Stable profitability at Swedish operations Price pressure and negative earnings in Hungary Restructuring of Hungarian operations Low capacity utilization Restructuring expenses of SEK 55 M charged in Q3 Goodwill writedown of SEK 38 M charged in Q4 Nolato Jász operations moved to Nolato Protec Nolato Industrial
** Market trends Fragmented demand situation Stable vehicle production Stable household volume, except in Central Europe General excess capacity - price pressure Increased production in low-cost countries Nolato Industrial, continued
** Increased sales Project revenues during Q4 New customer projects with lower volume than expected Operating income declined by SEK 3 M Lower sales of new customer products High share of project revenues with low margins during Q4 Market trends Long-term growth area Wait-and-see market Weak earnings in the sector Nolato Medical
** Strong cash flow after investments, SEK 228 M (-68) Net liabilities declined to SEK 307 M (500) Shareholders' equity was SEK 569 M, compared to SEK 624 M at the end of 2002 The equity/assets ratio was 31 percent (33) Proposed dividend of SEK 0.80 (0.50) or SEK 21 M Financial position
** Strong sales growth and high capacity utilization High purchased-component value – over SEK 400 M in 2003 Nolato Beijing developing better than plan High capacity utilization and continued expansion Improved earnings at Nolato Industrial Lower expenses and better effectiveness in the Hungarian operations going forward, but continued price pressure and low volume Declining margins at Nolato Medical Sales at Telecom are expected to be lower in 2004 than in 2003. Other profit centers are expected to increase their sales somewhat. Summary
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