Georg Brunstam President and CEO Per-Ola Holmström CFO Teleconference Wednesday February 2, 2004 at 4 P.M. Year-end report 2003
Dec 14, 2015
Georg Brunstam President and CEO
Per-Ola Holmström CFO
Teleconference Wednesday February 2, 2004 at 4 P.M.
Year-end report 2003
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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.
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Group structure
Nolato Telecom
Nolato Industrial Sweden
Nolato Medical
Nolato Industrial Central Europe
Four business areas
Three profit centers
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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
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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%
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Sales and earnings by quarterIncome after financial items excluding nonrecurring items Sales
SE
K 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
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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
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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
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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
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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
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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 MedicalSales at Telecom are expected to be lower in 2004
than in 2003. Other profit centers are expected to
increase their sales somewhat.
Summary