Nolato Medical

Welcome to 

Nolato's Capital Market Day 

October 3, 2013 

Stockholm

Introduction 

Hans Porat 

President & CEO 

Kristoffer Glowacki 

VP Global Sales & Technology 

Per-Ola Holmström 

Executive Vice President 

& CFO 

Dan Wong 

Managing Director 

Nolato Lovepac Converting 

Christer Wahlquist 

Executive Director Nolato Group 

President Nolato Medical 

2

Overall trends and how to counteract 

Macro 

Our Customers 

Nolato 

• Globalization 

• Shorter product 

Life cycle 

• ”More for less” 

• Outsourcing 

• Time to market 

• Differentiation 

• Price pressure 

• Early involvement 

• Calculation/Simulation 

• Project Management 

• Multi site offering 

• Shorter lead times 

• Flexibility/adoptation 

• Design 

• Innovation 

• Technology 

• Productivity 

3

A G E N D A 

09:30 The Nolato Group 

Hans Porat/Per-Ola Holmström 

Welcome to Nolato's Capital Market Day 2013 

Purpose: 

The purpose of the Capital Market Day is to give an update 

on the operational and financial performance of the Group as 

well as a deepening of the operations within particular Nolato 

Medical and Nolato Telecom. 

Nolato represented by: 

• Hans Porat, President & CEO 

• Per-Ola Holmström, Executive Vice President & CFO 

• Christer Wahlquist, Executive Director Nolato Group, 


• Kristoffer Glowacki, VP Global Sales & Technology 

• Dan Wong, Managing Director, Nolato Lovepac 

Converting 

Nolato Medical 

”How we work” 

Christer Wahlquist/ 


Coffee break 

Nolato Telecom 

”Small part technologies” 

Hans Porat/Dan Wong 

Nolato Industrial 

Hans Porat 

Summing up 

Hans Porat 

Q & A 

All 

12:00 Lunch buffet + discussion 

4

The Nolato Group in brief 

As a partner to our customers, we offer flexible and effective 

development and production of polymer product systems 

History 

Key ratios R-12 

Business areas 

• Established in 1938 in Torekov, Sweden 

• Listed on the stock exchange in 1984 

• Net sales 

SEK 4,409 M 

• Operating profit (EBITA) SEK 398 M 

• ROCE 23,0 % 

• No. of employees 8,500 

• Nolato Medical 30% of net sales 

• Nolato Telecom 40% of net sales 

• Nolato Industrial 30% of net sales 

Position 

• Nolato Medical – “Champions League” 

• Nolato Telecom – “Small but excellent” 

• Nolato Industrial – “Market leader” 

5

Nolato – close to our customers 

Avg. no of employees 

2012: 8,500 

EU+US 

19% EU+US 

22% 

Asien 81% 

Asia 78% 

Production/Technology/Sales 

Technology/Sales 

6

One Group – three business areas 




7

Nolato Medical in brief 

“Leading developer and manufacturer 

of polymer products and product 

systems for medical technology and 

pharmaceutical customers.” 

Current position: 

• Strong market position in the 

Nordic countries 

• Growth with solid profit 

Customers: 

• Major pharmaceutical and medical 

technology companies, e.g. Novo 

Nordisk, Takeda, Thermo Fisher etc. 

Outlook: 

• Internationalisation through 

outsourcing and acquisitions in 

Europe and North America 

• Growth in Asia 



Acc. 6 

months 

Full year 

SEK million 2013 2012 2012 2011 2010 

Sales 651 561 1 159 917 808 

Operating income (EBITA) 85 67 133 110 100 

EBITA margin (%) 13.1 11.9 11.5 12.0 12.4 

8

Nolato Telecom in brief 

“Development partner, differentiation 

provider and supplier of mechanical 

modules with substantial cosmetic and 

haptic content, primarily towards 

the mobile phone sector.” 


• Strong position with selected customers 

• All mobile phone-related manufacturing 

in Asia 

• Focus on cosmetic aspects 

• Unique technical competence and 

project management 

Customers: 

• Ericsson, Huawei, Motorola, Nokia, 

Nokia Solutions, BlackBerry, Sony 

Mobile, Xiaomi etc. 

Outlook: 

• Organic growth with current and new 

customers through a broadened 

customer offering 



Acc. 6 months 

Full year 

SEK million 2013 2012 2012 2011 2010 

Sales 1 168 710 1 548 935 1 575 


EBITA margin (%) 8.6 3.9 6.2 1.2 7.7 

9

Nolato Industrial in brief 

“A leading developer and manufacturer of 

components and product systems in 

polymer materials for customers in the 

automotive, hygiene, packaging, gardening/ 

forestry, white goods and other selected 

industrial segments.” 


• Strong position in Scandinavia and 

Central Europe 

• Tracks the industrial cycle 

Customers: 

• Haldex, Ikea, Lindab, MCT Brattberg, 

Sanitec, Volvo etc. 

Outlook: 

• Focus on market shares, productivity 

and cash flow 


Acc. 6 months 

Full year 

SEK million 2013 2012 2012 2011 2010 

Sales 599 613 1 170 1 129 994 


EBITA margin (%) 9.8 9.3 9,0 9,0 7,9 

10

Group financial highlights 

Q2 

Acc. 6 months 

SEK million 2013 2012 2013 2012 

Net sales 1 164 1 046 2 418 1 883 

Operating income (EBITA) 111 81 233 138 

EBITA margin, % 9.5 7.7 9.6 7.3 

Profit after financial income and expense 105 74 218 125 

Profit after tax 78 54 163 91 

Cash flow after investments, excl. acquisitions and disposals 120 56 136 24 

Earnings per share, SEK 2.97 2.05 6.20 3.46 

Adjusted earnings per share, SEK 3.07 2.17 6.42 3.61 

Equity/assets ratio, % – – 42 41 

Net debt – – 128 406 

Return on capital employed, % (rolling 12 months) – – 23.0 15.9 

11

Financial targets 

EBITA margin Equity/assets ratio ROCE 

Target >8% Target >35% Target >15% 

% % % 

12 12

The Nolato share 

Listed on Nasdaq OMX Nordic, Stockholm Mid Cap 

Shareholder % of capital % of votes 

Jorlén family 9,8 24,4 

Boström family 9,5 19,6 

Paulsson family 6,2 17,6 

Svolder 5,1 2,6 

Nolato B + 55,6% 

Odin fonder 4,5 2,3 

Skandia fonder 4,2 2,2 

DnB-Carlson Fonder 2,6 1,3 

MPCS EQ SEC Client 2,3 1,2 

Handelsbanken 2,1 1,1 

Lannebo fonder 2,1 1,1 

Total for ten largest 

shareholders 

48 73 

Other shareholders 52 27 

OMX Mid Cap + 39,5% 

Total 100 100 

Share of foreign 

shareholders 

No. of shareholders 

29,9% 

8 212 st 

August 30, 2013. Source: Euroclear Sweden 

13

Nolato’s Basic Principles / CSR 

The values and business principles which we honour and which guides us 

in our daily work. 

OHSAS 18001/ 

UN Global Compact 

ISO 14001 

ISO 9001 

Whistleblowing 

•Conduct/ethics • Environment • Quality • Openness 

Nolato’s basic principles 

We are professional. We are well organised. We are responsible. 

14

Nolato’s Basic Principles / CSR 

VA’s sustainable portfolio 

November 2009 May 2010 November 2010 

November 2011 November 2012 

January 2013 

15

A G E N D A 




Purpose: 












Converting 





Coffee break 





Hans Porat 

Summing up 

Hans Porat 

Q & A 

All 


16

Nolato Medical in brief 

“Leading developer and manufacturer of polymer 

products and product systems for medical technology 

and pharmaceutical customers.” 

Short Facts: 

• Medical mentality and mindset based on more than 

50 years supplying pharma and medical sector 

• Broad technology base 

• 10 medical sites on 3 continents and all sites having 

relevant quality certifications. 

Capabilities: 

• Excellent engineering support for development 

enabling efficient and robust production 

• Injection moulding of Plastic/TPE incl 2K and insert 

moulding 

• World leading within injection moulding of Silicone 

• Experienced and dedicated teams for 

Transfer/Outsourcing 

Outlook: 

• Focus on long-term partner relationship 

• Further develop design capabilities 

• Continue Internationalization thorough acquisitions 

and LCC expansions 

MSEK 

Nolato Medical Production/Technology/Sales 

Nolato Medical Technology/Sales 

”From local to global” 

”market growth” 

18

SEK M 

SEK M 

Nolato Medical – ”Footprint” 

1400 

1200 

1000 

800 

600 

400 

200 

0 

Sales 

2007 2008 2009 2010 2011 2012 R-12 

Profitability ROC % 

EBITA % 

EBITA % ROC % 

20 

20 

18 

18 

16 

16 

14 

14 

12 

12 

10 

10 

8 

8 

6 

6 

4 

4 

2 

2 

0 

0 

2007 2008 2009 2010 2011 2012 R-12 

Investments and depreciation 

Geographical Sales 

80 

70 

60 

50 

40 

30 

20 

10 

0 

Investments excl. acq. and divestm. 

Depreciation 

2007 2008 2009 2010 2011 2012 

North 

America 

Asia 

Other 

Europe 

Other 

Sweden 

Other 

Nordic 

19

Two operational areas 

Medical Devices 

Pharma packaging 

20

Full support from Concept to delivery 

• Design for manufacturing – DFM 

• Design for assembly – DFA 

• Medical documentation practice (e.g. Design history file) 

• Risk analysis (e.g. FMEA) 

• Keeping timelines through excellent project management 

TDC Industrialization Full scale production 

Development 

Tooling 

Automatization 

Production 

Assembly 

21

Nolato Medical Technical Design Center – 

Turnkey Solution Service 

Product development: 

Concept analyses 

Robust design 

Verification / Validation 

Process Development: 

Tool design 

Injection Moulding 

Mould Flow Analyses 

Rapid prototyping 

Assembly Technologies 

Decoration 

Packaging 

Project Management: 

Effective Management of: 

- System Projects 

- Global Project 

Quality Assurance: 

Quality assurance starts early in project 

Right Documentation level 

Validation 

Tools: 

Pro Engineer, Solid Works 

Moldflow, Moldex3D, 3D printer, 

DFA DFM, Scanning, CT scanning 

Other CAE tools 

Manufacturing Architecture: 

Assembly Concepts 

Proof of Principle 

Manual 

Semiautomatic 

Fully automated 

Product costing 

Assembly Techniques 

Ultra Sonic welding 

Laser welding 

Heat staking 

Press fitting 

Gluing 

Adhesive 

22

NPD challenges in Medtech Industry 

• Highly regulated environment 

Product registrations according to local authorities 

Close to 1000 Regional and International Design Standards 

• Reliability of the design 

Acceptance of failure rates at ppm levels 

• Design intuitiveness 

Stress environment 

Conservative users 

Home care, old patience base 

• Product Verification and Validation 

Extensive documentation requirements 

Complex protocol for design validation and clinical trials 

23

24 

”NPD ranks among the riskiest 

and most confusing tasks for 

most Medtech companies”

New Product Development – the art of 

balance between difficult tradeoffs 

Patient 

Molding 

Assembly 

Etc. 

Regulatory 

Clinician 

Time to Market 

Time to Volume 

Time to Profit 

25

Safe and Simplified Approach is Welcomed 

How do we 

design “it” 

How do we 

test it 

How do we 

produce it 

What does the 

customer want 

Partnering with industry 

experts will shorten time to: 

market, volume & profit 

26

Outsourcing Forces Creation of Good Definitions 

of Product Requirements Values & Opportunities 

Stakeholder 

Pharmacy 

Technician 

Stakeholder 

Nursing 

Category 

Ease of Use 

User Feedback 

Needle Protection 

Category 

Ease of Use 

Accidental 

Disconnections 

Ease of Disinfection 

User Feedback 

Patient Comfort 

Leak Protection 

Needle Protection 

Requirement 1 

Clinical Evidence 

Requirement 2 

Ease of Use (Pharmacy) 

Requirement 3 

Vapor Protection 

Requirement 4 

DVO Studies/Claims 

Requirement 5 

Leakage Protection 

Requirement 6 

. 

. 

. 

Brand 

Drug Waste 

Components to Stock 

Nursing Acceptability 

Requirement n 

Price 

Stakeholder 

KDM 

0,00% 5,00% 10,00% 15,00% 20,00% 25,00% 

Current 

Concept 1 Concept 2 Concept 3 

27

In Summary Why 

• Partnering forces discipline on the customer 

and our end 

• Engineers from partnering companies are 

very well trained 

• Operations are very well trained on volume 

ramp-ups 

• Product prices are contracted 

• Simple solution 

28

Early Design Evaluations reduces risks 

Engineering Experience + Advanced Analytical Modeling 

29

Analytical modeling - first principles of physics 

Is there available 

design space for 

chosen design 

principles & selected 

materials 

F N = f(TS, t, a, B_init, w) 

30

Engineering Tools Development 

From Empirical 

Analytical 

31

Transfer Functions and Design Optimization 

• Transfer function development - Regression 

models 

• Virtual DOE 

• Sensitivity analysis 

• Assessment of variation 

• Optimization 

32

How to Prove Quality Performance 

Capability modeling 

Monte Carlo Analysis 

F N = f(TS, t, a, B_init, 

w) 

m 

noise 

F Withdrawal =m F N 

33

Functional performance prediction based on 

analytical and statistical modeling 

Out of 11 design parameters and 2 noise just 3 are critical to product function 

34

Model verification with experiments 

V-clip normalized normal force (N) 

2,5 

2 

FN_s (N) 

FN_e (N) 

1,5 

1 

0,5 

0 

A (0,10/18°/4,9/0%) 

C (0,10/26°/5,3/0%) 

B (0,10/18°/4,9/50%) 

D (0,10/26°/5,3/50%) 

E (0,12/18°/4,9/0%) 

G (0,12/26°/5,3/0%) 

design 

F (0,12/18°/4,9/50%) 

H (0,12/26°/5,3/50%) 

REF (0,127/18°/5,0/0%) 

Validating analytical models for use in design verification work 

35

Development of Product Specifications Document 

- detailed summary of design knowledge 

Improved communication, between R&D, Process Development and QA teams, 

allow focus on critical design parameters resulting in lead time reduction 

36

Design For Manufacturing 

Making work work 

37

Design Traceability Matrix 

Linking design specifications(tolerances) to requirements 

– every tolerance must have relevance to user or process requirements 

38

Verification testing based an analytical 

knowledge 

Design Output = Design Input 

MSA 

Instruments 

Process Capability of Medel Friktion (N) 

Process Data 

LSL 0,10000 

Target * 

USL 0,80000 

Sample Mean 0,36950 

Sample N 100 

StDev (Within) 0,03770 

StDev (O v erall) 0,03770 

LSL 

USL 

Within 

Overall 

Potential (Within) C apability 

Cp 3,09 

C PL 2,38 

C PU 3,81 

C pk 2,38 

C pk 3,09 

O v erall C apability 

Pp 3,09 

PPL 2,38 

PPU 3,81 

Ppk 2,38 

C pm * 

0,1 

0,2 

0,3 

0,4 

0,5 

0,6 

0,7 

0,8 

O bserv ed Performance 

PPM < LSL 0,00 

PPM > USL 0,00 

PPM Total 0,00 

Exp. Within Performance 




Exp. O v erall Performance 




Fixtures 

Analytical models verified by experimental testing 

reduces sample size for testing and eliminates need 

for max, min studies 

39

A G E N D A 




Purpose: 












Converting 





Coffee break 





Hans Porat 

Summing up 

Hans Porat 

Q & A 

All 


40

A G E N D A 




Purpose: 












Converting 





Coffee break 





Hans Porat 

Summing up 

Hans Porat 

Q & A 

All 


41

42 

Nolato Telecom

Nolato Telecom in brief 

“Development partner, differentiation provider and 

supplier of mechanical modules with substantial 

cosmetic and haptic content, primarily towards 

the mobile phone sector.” 

Short Facts: 

• More than 15 years experience from the mobile 

phone sector 

• World class provider of short lead times and 

outstanding project performance 

• More than 5000 employees, production in China and 

Malaysia and sales and engineering offices in 

Sweden, USA and India. 

Capabilities: 

• One stop shop for almost all technologies which are 

relevant for the mobile phone sector 

• Extreme focus on unique solutions combining 

mechanic performance with excellent cosmetic and 

haptic appearance 

• Technology power house for development and 

production of EMC solutions 

Outlook: 

• Organic growth with current and new customers 

through a broadened customer offering 

• Growth in EMC, also outside the telecom sector 

MSEK 



”Adaptation and flexibility” 

”projects” 

43

SEK M 

SEK M 

Nolato Telecom – ”Footprint” 

Sales 

EBITA % 

12 

Profitability 

EBITA % ROC % 

ROC % 

120 

10 

100 

8 

80 

6 

4 

2 

0 

2007 2008 2009 2010 2011 2012 R-12 

60 

40 

20 

0 

Investments & depreciations 


44


Mobile phones 

EMC shielding 

45

Lövepac 

Innovation

Lövepac in a nutshell 

• A Nolato telecom brand 

• Small cosmetics & mechanics 

• A Nolato competence window 

• Originate from converting 

• To more design orientation 

47

49 

Traditional Converting

50 

Enriched Offerings

51 

Design Evolution 

Acoustic Cosmetic Module (ACM)

Design Evolution - ACM 

2008 

2009 

2009 2010 

52

Design Evolution - ACM 

2011-12 

53

54 

Design Evolution - ACM

Phone’s Issues 

everywhere 

more antenna 

faster, thus hotter 

looks boring all the same 

55

Advanced Converting 

“…koka soppa på en…” 

56

Advanced Converting - Thermal 

Thermal 

Management 

Laboratory 

58

Lövepac Thermal 

Management Laboratory 

Lövepac Thermal Management Laboratory 

creates virtual models of electronic thermal 

environment, simulates and analyzes thermal 

natures, and test material or applications’ spec 

and parameters quickly also easily before any 

physical prototypes are built. 

Laboratory projects: 

• Material thermal performance analysis & database 

• Material composition’s thermal simulation 

• New thermal materials, e.g. heat absorbing material 

• Thermal material converting/lamination design 

• Thermal management solutions tailor-making 

59

Branding 

Decoration 

60

61 

Track Record of Branding Decoration

62 

LogoTech Innovation

Antenna 

Integrated 

Decoration 

63

Boring Design 

NFC Antenna 

Branding Logo 

64

Ceramic 

Development 

Center 

67

69 

Ceramic – A Try

Lövepac Ceramic Development Center 

• Focus on Zirconia injection molding 

• For volume manufacturing capability study 

• Full flow of manufacturing prototype in house 

70

A G E N D A 




Purpose: 












Converting 





Coffee break 





Hans Porat 

Summing up 

Hans Porat 

Q & A 

All 


71

Nolato Industrial

Nolato Industrial in brief 

“A leading developer and manufacturer of 

components and product systems in polymer 

materials for customers in the automotive, hygiene, 

packaging, gardening/forestry, white goods and 

other selected industrial segments.” 

Short Facts: 

• Nolato Industrial’s business concept is based on 

strong, specialist companies, which create 

business opportunities both individually and in 

cooperation with each other 

• Broad technology and customer base 

Capabilities: 

• Innovative with high degree of technological 

expertise 

• Strong project management 

• Highly efficient production 

Outlook: 

• Focus on market shares, productivity 

and cash flow 

• Selective geographic expansion alongside 

customers and/or through selective acquisitions 

that bring new customers or technologies 

MSEK 

Production/ 

Technology/ 

Sales 

”Innovative Technology and Productivity” 

”industrial cycle” 

73

SEK M 

SEK M 

Nolato Industrial – ”Footprint” 

Sales 

EBITA % 

30 

Profitability ROC % 

EBITA % ROC % 

30 

25 

25 

20 

20 

15 

15 

10 

10 

5 

5 

0 

2007 2008 2009 2010 2011 2012 R-12 

0 

Investments and depreciation 


74


Automotive 

General Industry 

75

A G E N D A 




Purpose: 












Converting 





Coffee break 





Hans Porat 

Summing up 

Hans Porat 

Q & A 

All 


76

One Group – three business areas 




77

Benefiting from a shared platform 

Medical 

• Market growth 

• Quality, documentation 

and traceability 

• Quality 

• Materials 


• Engineering 

• Design 

• Project 

• Purchase 

• Production 

• Logistics 

Telecom 

• Project-related market 

• Fast startups 

• Short product life 

cycles 

Industrial 

• Industry cycle 


• ”Lean manufacturing” 

Internal processes 

Customers/application segments 

78

Growth and stability 


”good growth” 

Nolato Medical Nolato Telecom Nolato Industrial 

”strong growth” ”projects” ” industrial cycle” 

79

Overall trends and how to counteract 

Macro 

Our Customers 


• Globalization 

• Shorter product 

• Life cycle 

• ”More for less” 

• Outsourcing 

• Time to market 

• Differentiation 

• Price pressure 

• Early involvement 

• Calculation/Simulation 

• Project Management 

• Multi site offering 

• Shorter lead times 

• Flexibility/adoptation 

• Design 

• Innovation 


• Productivity 

”Support our customers by managing trends” 

80

Vision 

Nolato shall be the customer’s 

first choice of partner! 

81

A G E N D A 




Purpose: 












Converting 





Coffee break 





Hans Porat 

Summing up 

Hans Porat 

Q & A 

All 


82

A G E N D A 




Purpose: 












Converting 





Coffee break 





Hans Porat 

Summing up 

Hans Porat 

Q & A 

All 


83

84 

An innovative partner

85 

High productivity

Nolato Medical

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