Medical stable, cyclical risk in Engineered

Small Cap Miner – August 2024

Finally back to double-digit EBITA margin

A sizeable margin improvement in both segments. EBITA estimates left largely unchanged. Trading at 15.5x '25e EV/EBITA.

Lower sales, but higher margin

Yet more ground to gain on margins

Q2e: Slight margin improvements expected. Org. estimates mostly unchanged, EBITA down 2-3% on FX. More ground to gain on margins, 19-16x '24e-'25e EV/EBITA.

Small Cap Miner - May 2024

Clear margin improvement

21% EBITA beat vs. consensus mainly margin-driven. Lower costs and favourable mix to persist, EBITA up by 10-7%. Now trading at 17-15x '24e-'25e EV/EBITA.

EBITA 21% above consensus

Expect gradual improvements throughout '24e

Q1e: still some de-stocking weighing on Medical. Minor revisions, '25e-'26e EBITA up by 1% on FX. Strong recent performance, cons. f12m EV/EBITA 17x.

Nolato - Looking ahead at the ’23e margin recovery

Several factors weighed on Q3 margins We maintain our view on a ’23e margin recovery 11x ’22e EV/EBITA, fair value SEK 45-85 (50-90)

Nolato - Continued challenges

EBITA SEK 214m (-8% vs. cons. 232m) Consensus ’23e-’24e EBITA likely down by ~1-2% Trading at 11x ’23e EV/EBITA on pre-Q3 numbers

Nolato - Permit needed to play in China

Stricter regulation of VHP in China Q4 Integrated sales SEK 0.5bn (40% vs. ABGSCe) CEO expects permit within near future

Nolato - Making sense of oil, plastic and energy prices

Oil coming down, ~60% of material costs linked to oil Valuation now just 5% above 2020 trough levels Q3 preview: margin pressure and FX tailwinds

Nolato - VHP sales expected to bottom out in Q3

Weak guidance for Integrated Solutions in Q3… …but the worst should be behind us Clarity on dual sourcing lowers risk of more downgrades

Nolato - Guides for continued VHP decline in Q3

Adj. EBITA SEK 264m (+10% vs. Infront cons. 241m) Expect 4-6% cons. downgrades on weak guidance 15x ’22e EV/EBITA, conference call at 14:45 CET

Nolato - VHP continues to struggle in Q2

Q2 report due on Wednesday, 20 July Adj. EBITA lowered by 5-3% for ’22e-’24e Trading at 14-11x ’22e-’24e EV/EBITA (adj.)

Nolato - Take-aways from CMD

Main growth opportunities in Medical and EMC Not looking to sign new customers in VHP Financial targets reiterated, as expected

Nolato - Expectations ahead of CMD on 1 June

We expect focus on Medical Solutions and EMC Margin, cash conversion and leverage targets likely kept Look for news on dual-sourcing VHP and M&A agenda

Nolato - Headwinds in Integrated Solutions

Guiding for -20% q-o-q growth in Integrated Solutions… …and largest customer might switch to dual sourcing 14x ’22e EV/EBITA, fair value SEK 60-100 (80-120)

Nolato - Lower Q2 guidance for Integrated Solutions

Adj. EBITA SEK 267m (+10% vs. Infront cons. 242m) Guides for -20% q-o-q growth in Integrated Solutions 14-11x ’22e-’23e EV/EBITA on pre-Q1 numbers