Welcome to NOTE AB (publ) – Q1 presentation 2020-04-23

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Q1, 2020

Q1 – Strong organic growth, increased profitability and solid cash flow

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Sales +17% to 475 (405) MSEK. Corona impact appr. -20 MSEK (-5%).

Order backlog up ~22% vs LY.

OP +24% to 33 (27) MSEK. Corona impact net, appr. -3 MSEK

OP-margin +0.4%-points to 7.0% (6.6%).

Profit after financial items +13% to 28 (25) MSEK.

Profit after tax 22 (20) MSEK, or SEK 0.80 (0.73) per share.

Cash flow after capex +63 (2) MSEK, or +2.26 (0.07) SEK/share.

Equity ratio 41% (37%), well above target of 30%

NOTE MANUFACTURING UNIT

Western Europe Operating Margin 9.6%, Rest-of-World 3.8%

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Western Europe – sites in Sweden, Finland, and UK Rest-of-World – sites in Estonia and China

SwedenFinland

EstoniaUK

China

YTD Q1 (MSEK) Western Europe Rest-of-World2020 2019 Delta 2020 2019 Delta

Net sales - external 323 262 23% 152 143 6%Net sales - internal 1 2 8 19Net Sales 324 264 23% 160 162 -1%

Operating profit 31 25 6 6OP% 9,6% 9,3% 0,3% 3,8% 3,4% 0,4%

Inventory 256 253 1% 164 182 -10%

No of employees 511 434 18% 561 594 -6%

Strong sales growth in Medtech, Industrial & High-end consumer

30364

64

3014

Industrial

Communication

Medtech

Defence

High-endconsumer

2020

64%

13%

14%

6%

3%

100%

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258

74

35

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YTD 2019 YTD 2020

Industrial segment (growth +17%) still largest. Communication (-13%), Medtech (+83%), Defence (-6%) and High-end consumer (>100%)

Operational highlights Q1, 2020

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Quality and delivery performance, possibly “best-in-class” “Best Quality Award” received from large global customer in China

Continued strong organic growth (17%) Increased “share of wallet” existing customers, primarily within Industrial,

Medtech and High-end consumer Recent WINs now in serial production – DeLaval, Maven Wireless,

Micropower, Plejd, Charge Amps…

Record high wins of new customers in 2019 now in start-up phase >10% of Q1 sales from new customers

Continued strong order backlog (+22% vs LY) – good potential to stay on current positive growth curve despite global market uncertainties

Operational highlights in Q1, 2020 cont’d

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Continued Operating Margin strengthening to 7.0% Western Europe at record levels Efficiency projects in China and Estonia starting to pay off

Return on Operating Capital – ROOC >20%, in line with financial target

Capex plan ready to support further growth

Inventory levels in balance – continued strong cash flow in Q1 (+63 MSEK), or 2.26 SEK/share, however positive one-time effect from changed factoring

Strong balance sheet – Equity ratio ~41%, and very strong liquidity situation

Dividend proposal withdrawn, or rather postponed, awaiting future market development

Redemption of 1 million (~3%) treasury shares – suggestion for AGM approval

Q2 guidance

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China operations, one week prolonged production stop during Chinese New Year. Re-opened Feb 10 and fully up and running.

Windsor operations, about to re-open in late April. Expected Q2 sales drop ~20 MSEK.

High focus on maintaining current relatively good supply of electronic components.

Strong current order status, with a lot of new products in ramp-up. Good potential to achieve Q2 sales of ~500 MSEK, or growth >10%.

NOTE financially well-equipped to take advantage of growth opportunities likely to arise

Progress of the corona impact on NOTE, our customers and suppliers monitored closely with great humility.

Profitability improvement through sales growth and cost efficiency

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Sales 2013 – 2020 YTD (MSEK)

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Operating Margin 2013 – 2020 YTD*

Sales growth since Q4, 2013. CAGR ~12% Sales 2019: 1 760 MSEK. Growth 28%, whereof

organic 17% Sales Q1, 2020: 475 MSEK. Organic growth 17%

Continued Margin strengthening since 2013. Operating Margin 2019: 7.1%, +0.5%-points Operating Margin Q1, 2020: 7.0%, +0.4%-points

* OP (EBIT) adjusted -16 MSEK for non recurring profitin Q1, 2017, and +7 MSEK for EO cost in Q3, 2018

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NOTE – Growing with increased profitability since 2014…

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Thank you!