Capital Market Day. Stockholm, 29/05/2009. Welcome!

Transcription

1 Capital Market Day Stockholm, 29/05/2009 Welcome!

2 Nolato s overall positioning

3 The Nolato Group in brief Flexible and effective solutions for the development and production of polymer product systems History Financial highlights 2008 Business areas Founded in 1938 in Torekov, Sweden Listed in 1984 Sales SEK 2,824 million Operating income (EBITA) SEK 240 million ROCE 18.4% Employees (year average) 4,531 Nolato Medical 22% of sales Nolato Telecom 44% of sales Nolato Industrial 34% of sales The future Nolato Medical Global expansion and acquisitions Nolato Telecom Broadened customer offering Nolato Industrial Greater market share

4 Business mission Nolato is a high-tech developer and manufacturer of polymer product systems for leading customers in specific market areas. With in-depth expertise in materials and processes, early involvement in customer projects, advanced project management and detailed knowledge of each customer s specific requirements, Nolato is a long-term, experienced and innovative partner.

5 A business concept which adds value Customers Developed solution Nolato Market Application Specification Function Cost-effectiveness Flexibility Development Project management Construction/design Production Logistics

6 Nolato close to its customers Employees 31/03/2009 (year average) 3,370 Asia 69% Europe 31% Production/Technology/Sales Technology/Sales

7 One Group three business areas Nolato Medical Nolato Industrial Nolato Telecom

8 Nolato Medical in brief Sales 29% A leading development and production partner for medical technology and pharmaceuticals customers. The current situation: Strong market position in the Nordic region Growth, with excellent profitability Customers: Astra Tech, Boston Scientific, Coloplast, Gambro, Novo Nordisk, Nycomed, etc. The future: Internationalisation via outsourcing and acquisitions in Europe and North America Production/Technology/Sales Technology/Sales SEK millions Q Q Sales Operating income (EBITA) EBITA margin, %

9 Nolato Telecom in brief Sales 37% A global developer and manufacturer of system products for mobile phone and telecom base station customers. The current situation: Strong position with selected customers All mobile phone-related production in Asia Unique expertise within project management Customers: Ericsson, Huawei, Motorola, Nokia, Nokia Siemens, RIM and Sony Ericsson, etc. The future: Organic growth with existing and new customers through a broader offering Production/Technology/Sales SEK millions Q Q Sales ,243 Operating income (EBITA) EBITA margin, %

10 Four operational areas EMI shielding Mobile phones Converting Base stations

11 Nolato Industrial in brief Sales 34% A leading developer and manufacturer of products and product systems for customers in the automotive industry, white goods, gardening/forestry, furniture and other selected industrial segments. The current situation: Strong position in Scandinavia and Central Europe Following industry market trends Customers: Electrolux, Haldex, IKEA, Ifö, Lear, Lindab, MCT Brattberg, Volvo, etc. The future: Focus on market shares, efficiency and cash flow Production/ Technology/ Sales SEK millions Q Q Sales Operating income (EBITA) EBITA margin, %

12 Advanced industrial applications

13 Cutting-edge technology and flexible production

14 Stable set of values Nolato s Basic Principles Code of Conduct Environmental Policy Information Policy Quality Policy

15 Corporate responsibility People Ethics The environment The rights of individuals Respecting human rights Respecting our employees Not discriminating Good working environment Honest business deals Complying with laws No bribes No illegal collaboration Sustainable development Efficient use of natural resources Limiting waste Constant improvements Open information

16 Nolato s strengths create success Advanced, leading technology in three customer segments - Expertise in polymers since 1938 Expertise in development and design Flexible and effective production capacity Skilled project management Expertise in applications adds value Effective adaptation in a changing world Strong financial position The customer s first choice

17 Financial trends and position

18 Financial trends EBITA margin* Equity/assets ratio ROCE* Cash flow after inv** Target 7% Target 35% Target 15% % 10 % % SEK millions R R R R12 *Excluding non-recurring items **Excluding acquisitions and disposals

19 Group financial highlights Q1 12 months R Net sales, SEK millions ,740 2,824 Operating income (EBITA), SEK millions EBITA margin, % Income after financial items, SEK millions Net income, SEK millions Cash flow after investments, excl. acquisitions and disposals, SEK millions Earnings per share, SEK Adjusted earnings per share, SEK Equity/assets ratio, % Net debt, SEK millions Return on capital employed (rolling 12 months), %

20 Sales and earnings per quarter SEK millions SEK millions Sales Operating income (EBITA) excluding non-recurring items

21 Strong financial position Equity/assets ratio 54% Net debt SEK 28 million Credit agreements entered into 2009: SEK 750 million 2010: SEK 350 million All covenants met Net debt

22 Nolato Medical Partner for Life

23 Nolato Medical in brief 22% 440 Leading development and production partner for customers within the fields of medical technology and pharmaceuticals. Current position: Strong market position in the Nordic countries Stable growth and profitability Customers: Astra Tech, Boston Scientific, Coloplast, Gambro, Novo Nordisk, Nycomed, etc. Outlook: Internationalisation through outsourcing and acquisitions in Europe and North America More advanced product systems and more customer product development Production/Technology/Sales Technology/Sales SEK millions Net sales Total growth 20% 116% 33% 34% 34% Organic growth 15% 23% 23% 25% 26% EBITA

24 70 years of experience History in brief 1938 Nolato was founded in Torekov, Sweden 1957 First Medical customer 1997 Formation of Medical organisation (Torekov) 1999 Medical site Lomma Technology 2004 Acquisition of Kaltoplast Technology 2004 Medical site Hungary Geographic 2006 Acquisition of Medical Rubber Technology 2007 Acquisition of Cerbo Group Technology 2007 Medical site Kristianstad Technology 2008 Medical site China Geographic

25 Two businesses Pharmaceutical packaging Medical devices Medical devices Customer-specific products Long-term customer relationships Long product lifecycles Simple to complex products/systems Increased focus on product design Pharmaceutical packaging Large global players and contract packagers Off-the-shelf products/customer specific Increased product polarisation Standard low cost High end Bulky products (geographical limitations) 25

26 Outsourcing Disposal products for diabetics Condition: The product is aimed largely at older people with limited fine motor skills and impaired vision. Our task: We are an outsourcing partner for a customer. We injection-mould, pad-print and deliver products on trays in large volumes.

27 Development Urisheath Condition: Urisheaths are used as an aid for incontinence. Normally they are made of latex and the packaging announces sickness. Our task: To find the right material and develop a method for producing the urisheaths in order to fulfil the high requirements and to be able to use a more attractive packaging.

28 Complete product AstraZenecaNebunette inhaler Condition: The product is used by children and older people to allow them to inhale asthma medication in more than one breath. Our task: Injection moulding of components in plastic, TPE and silicone. Overall responsibility for assembly, packaging and final check of the finished product. Face mask in TPE, inhalation valve made of polysulphone, inhalation/exhalation membrane made of silicone, fish made of TPE.

29 New packaging solution Ergonomic design Condition: New patented packaging solution developed by Nolato in close cooperation with patient organisations. Our task: Approximately 10% of all people have decreased hand functionality, and therefore have problems opening child-safe packaging. We have developed a packaging optimised for easy opening.

30 New design

31 Market trends Growth Increased volume dependent on ageing population combined with lifestyle diseases Cost pressure in healthcare systems Increased cost for healthcare in combination with fewer blockbuster patents creates cost pressure, leading to generic drugs and home care Increased internationalisation Higher development and registration costs lead to greater need for global sales and increased interest in LCC production More design and shorter product lifecycles The products approach the patients, which increases the need for design and product updates 31

32 Customer trends Earlier and greater involvement in customer development Demands for more and faster product launches increases the need for intensified partnership with strong suppliers Increased need for global production Our customers would like to have suppliers who can support them with production on different continents More system supplies Our customers demand more assemblies and system supplies in order to allocate more resources to their core competence More professional procurement Increased outsourcing and cost pressure increases focus on professional procurement. Reduction of supplier base, global suppliers, etc.

33 Customer projects Idea Development Project Full-scale production Volume supply R & D Product development early involvement for optimisation of production process Mechanical design/ Design for Assembly Materials laboratory Project engineers (product, moulds, process, quality) Sourcing/ purchasing Global supplier network (e.g. components/ products and moulds) In-house tool shop with the Nolato patented Rapid Tooling technology Moulding of plastics and technical rubber (1, 2 and 3k) Extrusion, injection blow moulding, Dipping Punching and rotary die cutting Decoration (printing, painting, plating, IMD, IML, IMF, DD) Assembly processes Testing Logistics

34 Unique combination of technologies Injection moulding plastic and rubber Specialists in polymer materials: Plastics, TPE, silicone 2K and 3K. Extrusion Medical hoses and tubing manufactured in clean rooms Plastics, TPE, silicone Dipping Highly-automated process Extensive knowledge of materials Extremely high precision in dipping of catheter balloons Pharmaceutical packaging Primary packaging, standard and customer range Added value Automation, assembly, box building Decoration (DD-hard coating, IMD) Mould design, F1 Suitable logistics solutions

35 Nolato Medical Strategy Organic growth Offer a complete polymer solution Establish new customers in Europe and US with focus on a limited number of customers Participate in and contribute to customer development projects Outsourcing Being experts in outsourcing Forward integration Acquisitions Global footprint Focus on Europe/Americas

36 Nolato Medical s strengths 50+ years of experience in Medical Customer focus the will to understand High-tech development and leading technology in three market segments Efficient and flexible production capacity Competent project management putting high demands on our customers Dealing effectively with adaptation changes in the market place Cutting-edge medical quality and mentality Financial ability to support customer growth

37 Positioned for profitable growth

38 One Group three business areas Nolato Industrial Nolato Medical Nolato Telecom

39 Business areas for balanced operations Nolato Medical Nolato Telecom Nolato Industrial Basic Technology technology Polymer materials Polymer materials Polymer materials Market Products Continental/global Global National/cont./global Market characteristics Product cycle Market Customer growth potential Driving Success forces factors Number of customers Safety Attractive Functional Demography, quality of life, home care GDP, communication Just right Few Many Automotive and industrial production Product cycle Long Short Long/medium Market Market Product growth Driving forces Our success factors Components, systems and consumables Medical understanding Quality & safety technology Components and systems Customer preferences Technology/project mgmt. Production flexibility Cost-effectiveness Components and systems Productivity Cost-effectiveness

40 An evolving group 2009 Nolato Medical is growing rapidly and is on the brink of globalisation With the acquisition of the Kristianstad factory, Nolato became an established supplier of telecommunications products. Listing. For fifty years, exclusively Swedish industrial customers.

41 Nolato Medical The current situation Strong growth Strong market position in the Nordic region Broad technology base Trends Consolidation begun Premier League : None Global/continental presence Additional outsourcing User-friendliness/design Strategy Profitable growth Organic Outsourcing Acquisitions Expertise in project management and design

42 Nolato Telecom The current situation Excellent customer relationships Competitive production structure Develops advanced subsystems Trends Design and cosmetic effects Combining multiple materials The delivery route: Volume suppliers Benchmarking suppliers Development and technology suppliers Environmental aspects Strategy Organic growth Best in class Vertical integration Nolato ImageTech

43 Nolato Industrial The current situation Strong position in the Nordic region and with selected customers in Europe Highly-automated lean production Strong customer relationships Healthy cash flow Strategy Win market shares Lead the way in terms of technology Acquisition of: New customer segment New technology No geographic expansion Trends Sharper focus on: weight and environment smart, cost-effective solutions Further price pressure Growing difference between the automotive industry and other industries

44 Are the conditions right? Market conditions! Financial resources! Staff expertise! And the desire is also there!!!