Quarterly Report • Apr 24, 2023
Quarterly Report
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Q1
Interim report
"All four divisions displayed a significant increase in sales in the first quarter, which resulted in sales for the Group as a whole of SEK 1,482m (1,094), corresponding to currency neutral growth of 27.6 percent"
Read more in Sven Kristensson's CEO's comments on page 2.
Nederman made a convincing start to 2023. During the first quarter, sales increased at a high rate, at the same time as we were able to match the strong orders received in 2022 and we improved profitability and cash flow. Our investments in more efficient production and logistics are beginning to generate increasingly clear results, while we are also continuing to advance our market positions globally.
The environmental technology company Nederman's positive momentum continues. All four divisions displayed a significant increase in sales in the first quarter, which resulted in sales for the Group as a whole of SEK 1,482m (1,094), corresponding to currency neutral growth of 27.6 percent. At the same time, orders received came in at the same high level as sales and, in absolute numbers, were higher than last year, which is strong and establishes a solid foundation for sales in the coming quarter. Our efforts to increase operational efficiency continued undiminished, and together with higher sales volumes, helped us to strengthen profitability and cash flow during the quarter. Despite that sales mix, inflationary pressure and some continued supply problems had a negative impact on margins, we reported the best first quarter in the history of Nederman in terms of sales and profit. We still have work to do to further raise our margins.
A part of this work relates to our operations in China. We are currently relocating our production and warehouse units there while reviewing the supply chain and our sales resources. In this way, we will reduce fixed costs and create a platform that will be able to focus more effectively on profitable business. The important Chinese market has been challenging in recent years, partly as a consequence of the comprehensive covid-19-related lockdowns. Although the situation has improved, the market is more complex than before covid. Quite simply, we need to take action to create a platform for long-term profitable growth. As a consequence of this, a restructuring programme is being conducted in China, where a nonrecurring cost of SEK 20m was charged to first-quarter earnings.
Continuously reviewing opportunities to strengthen our competitiveness is an important and natural activity for a global and market-leading company such as Nederman. At the end of the quarter, the expanded production and warehouse facility in Thomasville in the US was ready for use, meaning that the new Nordfab Now logistics concept can now be implemented. We have also commenced the installation of the 10,000 m2 of solar panels on the roof of the building that will generate energy corresponding to half of the facility's needs.
High priority is assigned to increasing sales within growing sectors in which investments are being made in new technology, and a great deal of work is being done in our divisions to ensure that we are always relevant. Renewable energy, metal recovery, food and ventures related to electrification are some of the areas in which we are advancing our positions with existing and completely new solutions. A key reason for these successes is our leading-edge digital offering, with the long-term objective of offering our customers completely digitally controlled airflow. We also offer digital and smart solutions that help our customers to reduce their high energy costs for industrial air filtration. Our new Nederman SAVE system is now in operation at customers in Europe and in certain cases, has led to more than 60 percent lower energy consumption. The next step is to launch SAVE in the US.
I can say that the year began well for all divisions, even if we saw a marginal decline in orders received, which is to be compared with the strong quarter in 2022. A strong base business, high order backlog and acquisitions gave Nederman Extraction & Filtration Technology a new boost in sales and income. New large orders were received in the welding segment in the US. Nederman Process Technology continued to deliver on its strong order backlog and added further orders in, for example, non-woven and recycling, and also delivered higher margins and continued high returns on capital employed. Nederman Duct & Filter Technology also improved its sales and profitability, and secured new orders beyond its traditional industries. Finally, Nederman Monitoring & Control Technology is beginning to generate increasingly healthy returns on its investments, with higher orders received, sales and profitability as a result.
Even if the performance of our divisions remains positive, the risk remains that challenges in our supply chain, high inflation and a weaker economic outlook will impact customers' investment decisions and possibility of conducting business. In addition, the geopolitical uncertainty remains. However, Nederman stands strong in this macro environment. In terms of our large order backlog and our ability to grow our share of sales in industries with good structural growth, we take a positive view for the next quarter, but are somewhat more uncertain regarding development during the second half of the year.
Watch the interview on Nederman's YouTube channel. Playlist: Financial reports
Nederman is organised in four operating segments, which are based on technology, customer structure and business logic with its starting point in the group's brands. This means that the operating segments are global. The organisation has four overriding priorities: strengthened profitability, improved efficiency, utilisation of all the possibilities offered by digitalisation and internal and external sustainability.
Nederman Extraction & Filtration Technology develops and sells a broad range of filters and monitoring services, capturing devices, fans, high-vacuum products and reels for the distribution of a variety of liquids and compressed air. Sales are conducted through a network of partners and through own sales companies. Customers operate in industries with various types of air emissions that must be dealt with in an efficient and safe manner.
Nederman Process Technology offers services and filter solutions that are often integrated into the customer companies' production processes, where they capture harmful particles and gases, and other process critical equipment. Sales activities are conducted through the division's own sales organisation that has direct contact with the customers. The number of orders is low, but the individual order value is high. The customers comprise large companies in a large number of industries.
Nederman Duct & Filter Technology sells different types of ducting systems, valves and filter elements to ensure good air quality in a number of industries. Sales are mainly conducted through distributors, but there are also internal sales to Nederman's other divisions. The customers are found in a long line of industries, such as woodworking, cement & concrete production, automotive, metalworking and recycling.
Nederman Monitoring & Control Technology offers advanced measuring technology for gases and particles, and an IoT platform that consists of hardware and software that communicate with the cloud and provide customers with information and insight into critical parameters and processes. Sales are conducted through own companies, their networks of distributors and other divisions within Nederman. The division works with a broad spectrum of industries that need to continuously monitor and control their production and their processes.
| Currency- | ||||||
|---|---|---|---|---|---|---|
| 1 Jan-31 Mar | neutral | Organic | Full year | Apr-Mar | ||
| Order intake - External, SEKm | 2023 | 2022 | growth | growth | 2022 | 12 months |
| Nederman Extraction & Filtration Technology | 597.4 | 512.7 | 11.7% | -8.2% | 2,238.4 | 2,323.1 |
| Nederman Process Technology | 523.9 | 522.4 | -5.4% | -5.4% | 1,824.6 | 1,826.1 |
| Nederman Duct & Filter Technology | 193.0 | 165.2 | 6.4% | -3.4% | 704.4 | 732.2 |
| Nederman Monitoring & Control Technology | 190.2 | 144.5 | 25.5% | 22.0% | 657.4 | 703.1 |
| Total Nederman group | 1,504.5 | 1,344.8 | 5.9% | -3.3% | 5,424.8 | 5,584.5 |
| Total sales, SEKm | 1 Jan-31 Mar | Organic | Full year | Apr-Mar | ||
|---|---|---|---|---|---|---|
| 2023 | 2022 | growth | growth | 2022 | 12 months | |
| Nederman Extraction & Filtration Technology | 614.4 | 466.7 | 26.4% | 4.7% | 2,165.4 | 2,313.1 |
| Nederman Process Technology | 512.8 | 342.6 | 39.0% | 39.0% | 1,721.9 | 1,892.1 |
| Nederman Duct & Filter Technology | 212.0 | 176.0 | 9.5% | 3.4% | 790.8 | 826.8 |
| Nederman Monitoring & Control Technology | 170.9 | 132.4 | 23.4% | 18.9% | 605.9 | 644.4 |
| Elimination | -28.1 | -23.5 | -105.1 | -109.7 | ||
| Total Nederman group | 1,482.0 | 1,094.2 | 27.6% | 16.8% | 5,178.9 | 5,566.7 |
| 1 Jan-31 Mar | Full year | Apr-Mar | ||
|---|---|---|---|---|
| Adjusted EBITA, SEKm | 2023 | 2022 | 2022 | 12 months |
| Nederman Extraction & Filtration Technology | 88.9 | 81.1 | 357.3 | 365.1 |
| Nederman Process Technology | 42.4 | 10.5 | 99.9 | 131.8 |
| Nederman Duct & Filter Technology | 41.6 | 32.2 | 127.4 | 136.8 |
| Nederman Monitoring & Control Technology | 32.9 | 17.5 | 96.6 | 112.0 |
| Other - non-allocated | -33.1 | -25.6 | -114.6 | -122.1 |
| Total Nederman group | 172.7 | 115.7 | 566.6 | 623.6 |
| 1 Jan-31 Mar | Full year | Apr-Mar | |||
|---|---|---|---|---|---|
| Adjusted EBITA margin | 2023 | 2022 | 2022 | 12 months | |
| Nederman Extraction & Filtration Technology | 14.5% | 17.4% | 16.5% | 15.8% | |
| Nederman Process Technology | 8.3% | 3.1% | 5.8% | 7.0% | |
| Nederman Duct & Filter Technology | 19.6% | 18.3% | 16.1% | 16.5% | |
| Nederman Monitoring & Control Technology | 19.3% | 13.2% | 15.9% | 17.4% | |
| Total Nederman group | 11.7% | 10.6% | 10.9% | 11.2% |
Nederman Extraction & Filtration Technology's develops and sells a broad range of filters and monitoring services, capturing devices, fans, highvacuum products and reels for the distribution of a variety of liquids and compressed air.
Brand: Nederman, RoboVent
The division delivered a stable start to the year. Compared with the corresponding quarter of 2022, sales increased currency neutrally by 26.4 percent. Orders received increased due to last year's acquisitions, but declined 8.2 percent organically. The adjusted EBITA margin was 14.5 percent (17.4).
Sales increased within all sales channels, driven by, among other things, a solid base business, earlier strong order intake received and the contribution by RoboVent, which was acquired in July 2022. Service again displayed a significant increase and EMEA performed strongest among the regions. During the quarter, a certain hesitancy was noted among customers, particularly regarding medium and large orders for solutions. Higher volumes and stable project deliveries had a positive impact on profitability and earnings, while profitability was dampened somewhat by the sales mix with lower margins.
Four major orders were registered during the quarter. Three of these pertained to the Americas region, and were received by RoboVent within welding applications for various segments. The fourth major order was secured in Belgium and involved a solution for flue gas separation in public transport. In addition, orders received continued to increase from industries, within solutions and globally, which according to the division, display long-term structural growth, such as food, transport, green energy and the defence industry.
The rollout of Nederman SAVE continued in the markets in EMEA. SAVE is a digital solution featuring software and a package of services that enables significant energy savings for air filtration systems. The division's first installation at a customer yielded a reduction in energy consumption of more than 60 percent. Preparations are now under way to be able to also launch the solution in Americas.
Development in the various regions was varied. EMEA recorded the strongest organic sales growth, to which Belgium, the Netherlands and France contributed in particular. However, orders received were negatively impacted since only one major order was received during the quarter, unlike the corresponding quarter last year when several major orders were secured. Americas displayed a varied picture, in which Mexico and Brazil had strong growth, while the trend in Canada and the US was more sluggish, with the exception of RoboVent, which had a strong quarter with several large orders. In APAC, the situation remained challenging. Although the covid-19-related lockdowns have ended, activity remained on a low level in the region, apart from India, which displayed favourable growth.
| SEKm | Note | 2023 | 1 Jan-31 Mar 2022 |
Currency neutral growth |
Organic growth |
Full year 2022 |
Apr-Mar 12 months |
|---|---|---|---|---|---|---|---|
| Incoming orders - External | 597.4 | 512.7 | 11.7% | -8.2% | 2,238.4 | 2,323.1 | |
| Total sales | 3 | 614.4 | 466.7 | 26.4% | 4.7% | 2,165.4 | 2,313.1 |
| Adjusted EBITA | 88.9 | 81.1 | 357.3 | 365.1 | |||
| Adjusted EBITA margin | 14.5% | 17.4% | 16.5% | 15.8% |
Nederman Process Technology offers services and advanced filter solutions that are integrated into the customers' production processes where they catch harmful particles and gases.
Brands: MikroPul, Luwa, Pneumafil and LCI
The division continued its strong performance. In the first quarter, sales increased currency neutrally by 39.0 percent, compared with the corresponding quarter in 2022 and orders received decreased marginally compared with a very strong preceding year. The adjusted EBITA margin strengthened to 8.3 percent (3.1).
The division is increasingly delivering on its large order backlog. The sales growth during the quarter was significant in all segments and in both equipment and service. Renewed strength in demand also contributed to higher orders received compared with the previous quarter. Lower orders received in the textile segment was offset by strong performance in other segments. Larger volumes, a better mix, and cost and price initiatives meant that the division recognised its most profitable first quarter ever. A better functioning supply chain contributed to the division being able to deliver on its projects in line with or above the budgeted margins. Strong orders received and a historically high order backlog have provided the conditions for stable development during the second quarter. However, a weaker economy is expected to possibly dampen demand during the second half of the current year.
The division's sales in the textile segment increased sharply during the quarter, driven by a record-level order backlog. However, lower orders received were noted, compared with a very strong first quarter in 2022. China continues to represent the greatest challenge, but more and more signals point to increased textile consumption, at the same time as yarn inventories are declining. India performed strongly during the quarter and contributed to the division's positive development. For the textile segment as a whole, the division forecasts sales in 2023 in line with last year, driven by the existing order backlog. However, demand for new equipment is being dampened by a low level of capacity usage in spinning mills and by uncertainty related to geopolitics, rising financing expenses and a weaker macroeconomic trend. At the same time, the division made progress in adjacent non-woven business with new orders registered.
In the foundry and smelter segment, a strong sustainability trend is contributing to an increase in demand for the division's solutions in, for example, aluminium recycling. The division has established a strong presence in EMEA and is also working to grow in Americas, and during the quarter, a major order in recycling was received in the US. The market for smelters displayed some growth, driven by higher demand for components for electric vehicles, industrial applications and the aerospace sector. This has not yet resulted in large-scale investments in the industry, but the division secured one major order during the quarter.
The operations in China remain a major challenge, but a restructuring programme, in collaboration with the Extraction & Filtration Technology division, was launched and is expected to improve the situation going forward.
The segment for customised solutions is the most cyclical and often comprises large and relatively complex projects. The division's performance was strong during the quarter, with several large orders registered, including for the mining and chemicals industries, and successful execution of the projects contributed to the improved profitability for the division as a whole.
| SEKm | Note | 2023 | 1 Jan-31 Mar 2022 |
Currency neutral growth |
Organic growth |
Full year 2022 |
Apr-Mar 12 months |
|---|---|---|---|---|---|---|---|
| Incoming orders - External | 523.9 | 522.4 | -5.4% | -5.4% | 1,824.6 | 1,826.1 | |
| Total sales | 3 | 512.8 | 342.6 | 39.0% | 39.0% | 1,721.9 | 1,892.1 |
| Adjusted EBITA | 42.4 | 10.5 | 99.9 | 131.8 | |||
| Adjusted EBITA margin | 8.3% | 3.1% | 5.8% | 7.0% |
Nederman Duct & Filter Technology sells different types of ducting systems, valves and filter elements to ensure good air quality in a number of industries.
Brands: Nordfab and Menardi
The division had a stable start to the new year. Compared with the corresponding quarter of 2022, sales increased currency neutrally by 9.5 percent and orders received increased currency neutrally by 6.4 percent. The adjusted EBITA margin was 19.6 percent (18.3).
Sales and orders received during the quarter were higher compared with the corresponding quarter last year as well as the previous quarter, and comprised both businesses within the division. The newly established unit in Australia, Nordfab Australia, made a significant contribution to this development. Profitability was positively impacted by higher sales volumes, price adjustments, more orders with better margins and improved production and inventory processes.
The division's ducting systems business, under the Nordfab brand, displayed continued healthy order growth. This included core segments as the wood products and machine industries, but also a number of significant orders in the aerospace industry, mining and agriculture.
In the US, sales increased from an already high level and price adjustments, combined with improved production performance, led to higher profitability. The new warehouse building in Thomasville was completed at the end of the quarter and will facilitate the Nordfab Now concept, with next-day deliveries of standardised ducting systems to customers. A certain decline in production efficiency is expected to occur during the second quarter of the year in conjunction with the move into the new premises and reorganisation of the layout. Part of this activity comprises the introduction of a new warehouse management system as preparation for comprehensive automation of the warehouse.
Despite lower orders received, the trend in EMEA was better than expected, with the UK as the driving market. During the corresponding quarter in 2022, a significant order was secured for a major UK kitchen manufacturer and, excluding this, the division captured market share there during the quarter. In Central Europe, there were some signs of a slowdown, including lower purchasing volumes per customer.
Thailand had a weak start to the year, primarily due to an absence of export orders. However, domestic sales had stable performance despite a challenging market situation. The new unit in Australia recorded a doubling in orders received compared with the preceding quarter, but profitability continued to be impacted by some bottlenecks and integration costs. During the quarter, the implementation was completed of a new business system that improves control of the operations.
The division's filter solutions operations under the Menardi brand displayed a stable trend in both orders received and sales during the quarter. The US accounts for the bulk of operations and the pipeline remains strong there. The establishment of a sales representative in California at the end of 2022 has already resulted in orders and an expanded pipeline. Operations in Europe mainly comprise an aftersales business, which continued its stable performance during the first quarter.
| 1 Jan-31 Mar | Currency neutral | Organic | Full year | Apr-Mar | |||
|---|---|---|---|---|---|---|---|
| SEKm | Note | 2023 | 2022 | growth | growth | 2022 | 12 months |
| Incoming orders - External | 193.0 | 165.2 | 6.4% | -3.4% | 704.4 | 732.2 | |
| Total sales | 3 | 212.0 | 176.0 | 9.5% | 3.4% | 790.8 | 826.8 |
| Adjusted EBITA | 41.6 | 32.2 | 127.4 | 136.8 | |||
| Adjusted EBITA margin | 19.6% | 18.3% | 16.1% | 16.5% |
Nederman Monitoring & Control Technology offers advanced measurement technology and an IoT platform that consists of hardware and software that provide customers with information and insight into critical parameters and processes.
Brands: Nederman Insight, NEO Monitors, Auburn FilterSense and Gasmet
The division displayed a significant improvement during the quarter. Compared with the corresponding quarter in 2022, orders received increased currency neutrally by 25.5 percent and sales grew by 23.4 percent. The adjusted EBITA margin strengthened to 19.3 percent (13.2).
The demand for digital monitoring and control of production processes gathered pace during the quarter, which had a positive impact on the division's orders received. All three brands contributed to the growth and Americas was the region that performed strongest. Profitability was strengthened, mainly due to higher sales volumes, but also as a result of better functioning component supplies, although delivery problems and high prices persist to a large extent. Increased interest in digitalising processes in a number of different industries, together with the division's strong order backlog, has provided favourable conditions for continued sales growth in the coming quarters.
In EMEA, orders received and sales increased compared with the corresponding quarter in 2022, driven by higher activity for both Gasmet and NEO Monitors. The UK displayed high sales growth based on a large order backlog, mainly comprising analysers for applications in safety, emissions and the environment. The recently acquired Swiss company MBE contributed to sales growth and Gasmet also secured its first order in Portugal for many years.
In APAC, orders received and sales increased, while Gasmet and NEO Monitors also recorded higher activity here. Above all, Gasmet displayed a significant improvement compared with the immediately preceding quarters and secured several major orders and its first ever order in the Philippines. The entire region has long been held back by the covid-19 measures in China and the growth challenges remain extensive in this country, which has led to a need to review the distribution and sales organisation to be able to utilise resources more efficiently.
In Americas, all three brands had a positive quarter, with a significant increase in sales compared with the corresponding quarter in 2022. For Gasmet, this is connected with an increased interest in portable products with a focus on industrial hygiene, stack testing and environmental research. For Auburn Filter Senses, the sales increase was driven by core products in particle and filter monitoring, with a new record for deliveries during March.
| SEKm | Note | 2023 | 1 Jan-31 Mar 2022 |
Currency neutral growth |
Organic growth |
Full year 2022 |
Apr-Mar 12 months |
|---|---|---|---|---|---|---|---|
| Incoming orders - External | 190.2 | 144.5 | 25.5% | 22.0% | 657.4 | 703.1 | |
| Total sales | 3 | 170.9 | 132.4 | 23.4% | 18.9% | 605.9 | 644.4 |
| Adjusted EBITA | 32.9 | 17.5 | 96.6 | 112.0 | |||
| Adjusted EBITA margin | 19.3% | 13.2% | 15.9% | 17.4% |
Incoming orders were SEK 1,505m (1,345), equivalent to currency neutral growth of 5.9 percent compared with the same period last year.
Sales amounted to SEK 1,482m (1,094), equivalent to currency neutral growth of 27.6 percent compared with the same period last year.
Adjusted EBITA amounted to SEK 172.7m (115.7). Adjusted EBITA margin was 11.7 percent (10.6).
Operating profit amounted to SEK 127.1m (98.2), which gave an operating margin of 8.6 percent (9.0). Operating profit included a restructuring cost of SEK 20m.
Profit before tax increased to SEK 104.2m (94.0). Net profit was SEK 77.8m (70.5), which gave earnings per share of SEK 2.22 (2.01).
Cash flow from operating activities amounted to SEK 128.7m (-7.9) and cash flow for the period amounted to SEK 17.5m (-56.1). It was a strong cash flow in the first quarter of the year. It was primarily cash flow from working capital that strengthened, both due to the fact that inventory was maintained at a good level and the favourable development of operating receivables and liabilities. In the corresponding quarter last year, there was a sharp increase in inventory, due to stock build-up and higher raw materials prices, which had a negative impact on cash flow.
Compared with the corresponding quarter in 2022, investments in fixed assets increased. During the quarter, repayments of SEK 41m were made on the Group's loans. Other non-cash adjustments pertained primarily to the restructuring programme during the quarter.
Capital expenditure in intangible and tangible assets amounted to SEK 47.2m (29.7), of which capitalised development expenses amounted to SEK 11.9m (11.5).
At the end of the period the group had SEK 740.8m in cash and cash equivalents as well as SEK 108.8m in available but unutilised overdraft facilities. In addition, there was a credit facility of SEK 617.9m within the framework of Nederman's loan agreement with SEB and SHB. In 2022, repayment amounted to SEK 41m.
The equity in the group as of 31 March 2023 amounted to SEK 2,253.2m (1,839.4). The total number of shares outstanding was 35,093,096 at the end of the period.
The equity ratio for the group was 35.9 percent (37.9) as of 31 March 2023. The net debt/equity ratio was 62.5 percent (60.1).
The average number of employees during the period was 2,328 (2,163). The number of employees at the end of the period was 2,419 (2,245).
The group´s parent company, Nederman Holding AB, does not run any operating activities but has central head office functions. The parent company owns and manages shares in subsidiaries. The parent company´s net sales for the period amounted to SEK 5.4m (7.7) and is related to service charges to subsidiaries. Net profit for the period amounted to SEK -38.0m (-28.3). The decrease compared with the corresponding period last year was mainly attributable to research and development costs and administrative expenses.
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Quarter
Rolling four quarters
| Full year | Apr-Mar | ||
|---|---|---|---|
| 2023 | 2022 | 2022 | 12 months |
| 1,504.5 | 1,344.8 | 5,424.8 | 5,584.5 |
| 1,482.0 | 1,094.2 | 5,178.9 | 5,566.7 |
| 172.7 | 115.7 | 566.6 | 623.6 |
| 11.7% | 10.6% | 10.9% | 11.2% |
| 210.0 | 144.5 | 690.4 | 755.9 |
| 14.2% | 13.2% | 13.3% | 13.6% |
| 127.1 | 98.2 | 480.2 | 509.1 |
| 8.6% | 9.0% | 9.3% | 9.1% |
| 147.5 | 98.3 | 488.6 | 537.8 |
| 10.0% | 9.0% | 9.4% | 9.7% |
| 104.2 | 94.0 | 438.8 | 449.0 |
| 77.8 | 70.5 | 328.7 | 336.0 |
| 2.22 | 2.01 | 9.37 | 9.58 |
| 14.0% | 15.9% | 16.8% | 16.4% |
| 16.1% | 13.7% | 15.2% | 16.3% |
| 1,477.1 | 1,408.3 | ||
| 67.6% | 62.5% | ||
| 2.1 | 1.9 | ||
| 7.9 | 6.7 | ||
| 1 Jan-31 Mar |
| 1 Jan-31 Mar | Full year | Apr-Mar | |||
|---|---|---|---|---|---|
| External order intake, SEKm | 2023 | 2022 | 2022 | 12 months | |
| Americas | 602.0 | 378.8 | 1,960.1 | 2,183.3 | |
| EMEA | 617.4 | 692.5 | 2,477.5 | 2,402.4 | |
| APAC | 285.1 | 273.5 | 987.2 | 998.8 | |
| Total Nederman group | 1,504.5 | 1,344.8 | 5,424.8 | 5,584.5 |
| 1 Jan-31 Mar | Full year | Apr-Mar | ||
|---|---|---|---|---|
| External net sales, SEKm | 2023 | 2022 | 2022 | 12 months |
| Americas | 567.4 | 348.2 | 1,781.6 | 2,000.8 |
| EMEA | 678.5 | 537.0 | 2,315.6 | 2,457.1 |
| APAC | 236.1 | 209.0 | 1,081.7 | 1,108.8 |
| Total Nederman group | 1,482.0 | 1,094.2 | 5,178.9 | 5,566.7 |
Demand and orders received in the first quarter were good, although organic growth declined somewhat. Our base business and strong digital offering enable us to assert ourselves well in the current market. Although the situation has improved, we foresee a risk that continued problems in the supply chain, high inflationary pressure and weaker economic prospects will impact customers' investment decisions and possibility to do business, as well as Nederman's own production and delivery capacity. In addition, the continued geopolitical uncertainty is having a negative effect. In terms of our large order backlog and our ability to grow our share of sales in industries with good structural growth, we take a positive view for the next quarter, but are somewhat more uncertain regarding development during the second half of the year.
Although various factors may temporarily contribute to a dampened outlook in our industry, Nederman's long-term potential continues to strengthen. In a world in which insight into the damage that poor air does to people is increasing, Nederman, with its leading industrial air filtration offering, has a key role to play and good possibilities for growth.
| 1 Jan-31 Mar | Full year | Apr-Mar 12 months |
|||
|---|---|---|---|---|---|
| SEK million | Note | 2023 | 2022 | 2022 | |
| Net sales | 2.3 | 1,482.0 | 1,094.2 | 5,178.9 | 5,566.7 |
| Cost of goods sold | -941.6 | -689.0 | -3,311.0 | -3,563.6 | |
| Gross profit | 540.4 | 405.2 | 1,867.9 | 2,003.1 | |
| Selling expenses | -256.9 | -196.8 | -877.8 | -937.9 | |
| Administrative expenses | -112.7 | -94.6 | -429.9 | -448.0 | |
| Research and development expenses | -23.9 | -19.0 | -72.5 | -77.4 | |
| Restructuring costs | -20.0 | - | - | -20.0 | |
| Other operating income/expenses | 0.2 | 3.4 | -7.5 | -10.7 | |
| Operating profit | 127.1 | 98.2 | 480.2 | 509.1 | |
| Financial income and expenses | 4 | -22.9 | -4.2 | -41.4 | -60.1 |
| Profit before tax | 104.2 | 94.0 | 438.8 | 449.0 | |
| Taxes | -26.4 | -23.5 | -110.1 | -113.0 | |
| Net profit | 77.8 | 70.5 | 328.7 | 336.0 | |
| Net profit attributable to: | |||||
| The parent company's shareholders | 77.8 | 70.5 | 328.7 | 336.0 | |
| Earnings per share | 2.22 | 2.01 | 9.37 | 9.58 |
| 1 Jan-31 Mar | Full year | Apr-Mar | ||
|---|---|---|---|---|
| SEK million | 2023 | 2022 | 2022 | 12 months |
| Net profit | 77.8 | 70.5 | 328.7 | 336.0 |
| Other comprehensive income | ||||
| Items that cannot be reclassified to net profit | ||||
| Revaluation of defined-benefit pension plans | - | - | 35.3 | 35.3 |
| Tax attributable to revaluation of defined-benefit pension plans | - | - | -8.0 | -8.0 |
| - | - | 27.3 | 27.3 | |
| Items that have been or can be reclassified to net profit | ||||
| Exchange differences arising on translation of foreign operations | -11.1 | 51.5 | 235.9 | 173.3 |
| -11.1 | 51.5 | 235.9 | 173.3 | |
| Other comprehensive income for the period, net of tax | -11.1 | 51.5 | 263.2 | 200.6 |
| Total comprehensive income for the period | 66.7 | 122.0 | 591.9 | 536.6 |
| Total comprehensive income attributable to: | ||||
| The parent company's shareholders | 66.7 | 122.0 | 591.9 | 536.6 |
| 31 March | 31 March | 31 Dec | ||
|---|---|---|---|---|
| SEK million | Note | 2023 | 2022 | 2022 |
| Assets | ||||
| Goodwill | 2,012.9 | 1,641.6 | 2,027.5 | |
| Other intangible assets | 639.2 | 461.7 | 646.8 | |
| Tangible assets | 403.3 | 320.6 | 390.1 | |
| Right-of-use assets | 184.0 | 186.5 | 186.2 | |
| Long-term receivables | 4.2 | 5.8 | 4.2 | |
| Deferred tax assets | 116.4 | 67.2 | 104.0 | |
| Total fixed assets | 3,360.0 | 2,683.4 | 3,358.8 | |
| Inventories | 909.4 | 703.4 | 890.8 | |
| Accounts receivable | 5 | 783.5 | 610.3 | 814.8 |
| Other current receivables | 5 | 487.6 | 365.3 | 434.5 |
| Cash and cash equivalents | 5 | 740.8 | 494.1 | 721.2 |
| Total current assets | 2,921.3 | 2,173.1 | 2,861.3 | |
| Total assets | 6,281.3 | 4,856.5 | 6,220.1 | |
| Equity | 2,253.2 | 1,839.4 | 2,186.5 | |
| Liabilities | ||||
| Long-term interest-bearing liabilities | 5 | 1,875.0 | 1,300.6 | 1,931.9 |
| Long-term lease liabilities | 5 | 120.9 | 128.1 | 122.0 |
| Other long-term liabilities | 5 | 28.0 | 13.8 | 28.0 |
| Pension liabilities | 70.1 | 102.5 | 70.5 | |
| Other provisions | 27.8 | 18.1 | 28.3 | |
| Deferred tax liabilities | 113.1 | 71.6 | 119.0 | |
| Total long-term liabilities | 2,234.9 | 1,634.7 | 2,299.7 | |
| Current interest-bearing liabilities | 5 | 10.6 | - | - |
| Current lease liabilities | 5 | 72.5 | 68.8 | 73.9 |
| Accounts payable | 5 | 495.8 | 367.1 | 498.2 |
| Other current liabilities | 5 | 1,152.5 | 902.9 | 1,118.7 |
| Provisions | 61.8 | 43.6 | 43.1 | |
| Total current liabilities | 1,793.2 | 1,382.4 | 1,733.9 | |
| Total liabilities | 4,028.1 | 3,017.1 | 4,033.6 | |
| Total equity and liabilities | 6,281.3 | 4,856.5 | 6,220.1 |
| 31 March | 31 March | 31 Dec | |
|---|---|---|---|
| SEK million | 2023 | 2022 | 2022 |
| Opening balance at beginning of period | 2,186.5 | 1,717.4 | 1,717.4 |
| Net profit | 77.8 | 70.5 | 328.7 |
| Other comprehensive income | |||
| Change in translation reserve for the period | -11.1 | 51.5 | 235.9 |
| Revaluation of defined-benefit pension plans, net of tax | - | - | 27.3 |
| Total other comprehensive income for the period | -11.1 | 51.5 | 263.2 |
| Total comprehensive income for the period | 66.7 | 122.0 | 591.9 |
| Transactions with group owners | |||
| Dividend paid | - | - | -122.8 |
| Closing balance at end of period | 2,253.2 | 1,839.4 | 2,186.5 |
| 1 Jan-31 Mar | Apr-Mar | |||
|---|---|---|---|---|
| SEK million | 2023 | 2022 | 2022 | 12 months |
| Operating profit | 127.1 | 98.2 | 480.2 | 509.1 |
| Adjustment for: | ||||
| Depreciation and amortisation of fixed assets | 62.5 | 46.2 | 201.8 | 218.1 |
| Other adjustments for non-cash items | 18.4 | 0.7 | 0.7 | 18.4 |
| Interest received and paid including other financial items | -11.9 | -14.0 | -53.1 | -51.0 |
| Taxes paid | -43.0 | -47.9 | -134.9 | -130.0 |
| Cash flow from operating activities before changes in working capital | 153.1 | 83.2 | 494.7 | 564.6 |
| Cash flow from changes in working capital | -24.4 | -91.1 | -149.0 | -82.3 |
| Cash flow from operating activities | 128.7 | -7.9 | 345.7 | 482.3 |
| Net investment in fixed assets | -47.3 | -29.4 | -170.0 | -187.9 |
| Acquisitions | - | - | -445.3 | -445.3 |
| Cash flow from investing activities | -47.3 | -29.4 | -615.3 | -633.2 |
| Dividend paid | - | - | -122.8 | -122.8 |
| Cash flow from other financing activities | -63.9 | -18.8 | 525.5 | 480.4 |
| Cash flow from financing activities | -63.9 | -18.8 | 402.7 | 357.6 |
| Cash flow for the period | 17.5 | -56.1 | 133.1 | 206.7 |
| Cash and cash equivalents at beginning of period | 721.2 | 541.6 | 541.6 | 494.1 |
| Translation differences | 2.1 | 8.6 | 46.5 | 40.0 |
| Cash and cash equivalents at end of period | 740.8 | 494.1 | 721.2 | 740.8 |
This interim report is prepared in accordance with IAS 34 Interim Financial Reporting and applicable provisions of the Swedish Annual Accounts Act. The report for the parent company has been prepared in accordance with Swedish Annual Accounts Act chapter 9 and RFR 2. The same accounting policies and valuation principles as described in the latest annual report, see also page 99 of the 2022 Annual Report, have been applied both to the group and the parent company. None of the new or revised standards, interpretations and improvements adopted by the EU have had any material impact on Nederman group.
Segment reporting is based on reports submitted to the group´s senior executives. Nederman group is divided into four operating segments; Nederman Extraction & Filtration Technology, Nederman Process Technology, Nederman Duct & Filter Technology and Nederman Monitoring & Control Technology, which are described further on pages 4-7. The division is based on technology, customers and business logic with the aim of increasing both growth and profitability through simple structures and clear focus. Non-allocated items refer mainly to costs relating to the parent company, Nederman Holding AB, which includes the central head office functions.
| 1 Jan-31 Mar | Apr-Mar | ||||
|---|---|---|---|---|---|
| Order intake - External, SEKm | 2023 | 2022 | 2022 | 12 months | |
| Nederman Extraction & Filtration Technology | 597.4 | 512.7 | 2,238.4 | 2,323.1 | |
| Nederman Process Technology | 523.9 | 522.4 | 1,824.6 | 1,826.1 | |
| Nederman Duct & Filter Technology | 193.0 | 165.2 | 704.4 | 732.2 | |
| Nederman Monitoring & Control Technology | 190.2 | 144.5 | 657.4 | 703.1 | |
| Total Nederman group | 1,504.5 | 1,344.8 | 5,424.8 | 5,584.5 |
| 1 Jan-31 Mar | Full year | Apr-Mar | |||
|---|---|---|---|---|---|
| Total sales, SEKm | 2023 | 2022 | 2022 | 12 months | |
| Nederman Extraction & Filtration Technology | 614.4 | 466.7 | 2,165.4 | 2,313.1 | |
| Nederman Process Technology | 512.8 | 342.6 | 1,721.9 | 1,892.1 | |
| Nederman Duct & Filter Technology | 212.0 | 176.0 | 790.8 | 826.8 | |
| Nederman Monitoring & Control Technology | 170.9 | 132.4 | 605.9 | 644.4 | |
| Elimination | -28.1 | -23.5 | -105.1 | -109.7 | |
| Total Nederman group | 1,482.0 | 1,094.2 | 5,178.9 | 5,566.7 |
| 1 Jan-31 Mar | Apr-Mar | |||
|---|---|---|---|---|
| Adjusted EBITA, SEKm | 2023 | 2022 | 2022 | 12 months |
| Nederman Extraction & Filtration Technology | 88.9 | 81.1 | 357.3 | 365.1 |
| Nederman Process Technology | 42.4 | 10.5 | 99.9 | 131.8 |
| Nederman Duct & Filter Technology | 41.6 | 32.2 | 127.4 | 136.8 |
| Nederman Monitoring & Control Technology | 32.9 | 17.5 | 96.6 | 112.0 |
| Other - non-allocated | -33.1 | -25.6 | -114.6 | -122.1 |
| Total Nederman group | 172.7 | 115.7 | 566.6 | 623.6 |
| 1 Jan-31 Mar | Apr-Mar | ||||
|---|---|---|---|---|---|
| Adjusted EBITA margin | 2023 | 2022 | 2022 | 12 months | |
| Nederman Extraction & Filtration Technology | 14.5% | 17.4% | 16.5% | 15.8% | |
| Nederman Process Technology | 8.3% | 3.1% | 5.8% | 7.0% | |
| Nederman Duct & Filter Technology | 19.6% | 18.3% | 16.1% | 16.5% | |
| Nederman Monitoring & Control Technology | 19.3% | 13.2% | 15.9% | 17.4% | |
| Total Nederman group | 11.7% | 10.6% | 10.9% | 11.2% |
| 1 Jan-31 Mar 2023 | ||||
|---|---|---|---|---|
| Total sales by segment and sales type, SEKm | Product sales | Solution sales | Service and aftermarket |
Total |
| Nederman Extraction & Filtration Technology | 226.1 | 263.5 | 124.8 | 614.4 |
| Nederman Process Technology | - | 392.9 | 119.9 | 512.8 |
| Nederman Duct & Filter Technology | 189.9 | 15.7 | 6.4 | 212.0 |
| Nederman Monitoring & Control Technology | 140.0 | 5.6 | 25.3 | 170.9 |
| Elimination | -9.0 | -13.7 | -5.4 | -28.1 |
| Total Nederman group | 547.0 | 664.0 | 271.0 | 1,482.0 |
| 1 Jan-31 Mar 2022 | ||||
|---|---|---|---|---|
| Total sales by segment and sales type, SEKm | Product sales | Solution sales | Service and aftermarket |
Total |
| Nederman Extraction & Filtration Technology | 201.8 | 179.9 | 85.0 | 466.7 |
| Nederman Process Technology | - | 241.8 | 100.8 | 342.6 |
| Nederman Duct & Filter Technology | 164.2 | 8.5 | 3.3 | 176.0 |
| Nederman Monitoring & Control Technology | 112.2 | 3.9 | 16.3 | 132.4 |
| Elimination | -10.0 | -8.8 | -4.7 | -23.5 |
| Total Nederman group | 468.2 | 425.3 | 200.7 | 1,094.2 |
| Full year 2022 | ||||
|---|---|---|---|---|
| Total sales by segment and sales type, SEKm | Product sales | Solution sales | Service and aftermarket |
Total |
| Nederman Extraction & Filtration Technology | 826.5 | 918.9 | 420.0 | 2,165.4 |
| Nederman Process Technology | - | 1,282.6 | 439.3 | 1,721.9 |
| Nederman Duct & Filter Technology | 722.1 | 53.9 | 14.8 | 790.8 |
| Nederman Monitoring & Control Technology | 512.2 | 19.5 | 74.2 | 605.9 |
| Elimination | -36.7 | -46.6 | -21.8 | -105.1 |
| Total Nederman group | 2,024.1 | 2,228.3 | 926.5 | 5,178.9 |
| Revenue recognition – Performance obligations | |
|---|---|
| Products | Sales are satisfied at the point in time. |
| Solution sales | Performance obligations are satisfied over time. Revenue is recognised according to the project's rate of progression towards completion. |
| Service and aftermarket | Sales are satisfied at the point in time. |
The Nederman group has subsidiaries in Turkey where the functional currency is Turkish Lira, which is classified as a hyperinflationary currency. This means that assets and liabilities, including goodwill and other consolidated surplus values and deficits, in Turkish Lira must be adjusted for inflation in order to reflect changes in purchasing power. Inflation and its effect on the group is monitored and assessed continually.
Pursuant to IAS 29, Nederman's subsidiary in Turkey was recognised after remeasurement for hyperinflation in the Group's financial statements. Assets and liabilities in Turkish Lira are based on cost. The index used for remeasurement of the financial statements is the consumer price index (CPI), which increased by 12.5 percent during the year. At the balance sheet date, the SEK-TRY exchange rate was 0.54.
Monetary net profit was recognised in net financial items in the consolidated income statement and amounted to SEK 0.4m for full year 2023.
| SEK million | Measured at fair value via income statement |
Derivatives that are used for hedge accounting |
Financial instruments not reported at fair value |
31 March 2023 Total carrying amount |
|---|---|---|---|---|
| Accounts receivable | - | - | 783.5 | 783.5 |
| Other current receivables | - | - | 264.4 | 264.4 |
| Cash and cash equivalents | - | - | 740.8 | 740.8 |
| Total | - | - | 1,788.7 | 1,788.7 |
| Bank loans | - | - | 1,885.6 | 1,885.6 |
| Other long-term liabilities | 4.5 | - | 23.5 | 28.0 |
| Leasing liabilities | - | - | 193.4 | 193.4 |
| Accounts payable | - | - | 495.8 | 495.8 |
| Other current liabilities | 23.9 | - | 982.9 | 1,006.8 |
| Total | 28.4 | - | 3,581.2 | 3,609.6 |
No member of the Board of Directors or senior executives have or have had any direct or indirect participation in any business transaction with Group companies which is or was of an exceptional character with regard to terms and conditions that occurred during the year or in any previous year. Further, no group company has provided any loan, given any guarantees or entered into any surety relationships for any of the members of the Board of Directors or senior executives.
In addition to information on our reported IFRS results, we provide certain information on an underlying business performance basis. We believe that our underlying business performance measures provide meaningful supplemental information to both management, investors and other stakeholders. These underlying business performance measures should not be viewed in isolation or as substitutes to the equivalent IFRS measures, but should be used in conjunction with the most directly comparable IFRS measures in the reported results. This is a consistent application compared to previous periods. See page 22 for definitions.
| 1 Jan-31 Mar | Apr-Mar | ||||
|---|---|---|---|---|---|
| SEK million | 2023 | 2022 | 2022 | 12 months | |
| Operating profit | 127.1 | 98.2 | 480.2 | 509.1 | |
| Acquisition cost | 0.4 | 0.1 | 8.4 | 8.7 | |
| Restructuring costs | 20.0 | - | - | 20.0 | |
| Adjusted operating profit | 147.5 | 98.3 | 488.6 | 537.8 | |
| Adjusted operating profit | 147.5 | 98.3 | 488.6 | 537.8 | |
| Net sales | 1,482.0 | 1,094.2 | 5,178.9 | 5,566.7 | |
| Adjusted operating margin | 10.0% | 9.0% | 9.4% | 9.7% | |
| Operating profit | 127.1 | 98.2 | 480.2 | 509.1 | |
| Amortisation intangible assets | 25.2 | 17.4 | 78.0 | 85.8 | |
| Acquisition cost | 0.4 | 0.1 | 8.4 | 8.7 | |
| Restructuring costs | 20.0 | - | - | 20.0 | |
| Adjusted EBITA | 172.7 | 115.7 | 566.6 | 623.6 | |
| Adjusted EBITA | 172.7 | 115.7 | 566.6 | 623.6 | |
| Net sales | 1,482.0 | 1,094.2 | 5,178.9 | 5,566.7 | |
| Adjusted EBITA margin | 11.7% | 10.6% | 10.9% | 11.2% |
| 1 Jan-31 Mar | Apr-Mar | ||||
|---|---|---|---|---|---|
| SEK million | 2023 | 2022 | 2022 | 12 months | |
| Operating profit | 127.1 | 98.2 | 480.2 | 509.1 | |
| Depreciation and amortisation | 62.5 | 46.2 | 201.8 | 218.1 | |
| EBITDA | 189.6 | 144.4 | 682.0 | 727.2 | |
| EBITDA | 189.6 | 144.4 | 682.0 | 727.2 | |
| Acquisition cost | 0.4 | 0.1 | 8.4 | 8.7 | |
| Restructuring costs | 20.0 | - | - | 20.0 | |
| Adjusted EBITDA | 210.0 | 144.5 | 690.4 | 755.9 | |
| Adjusted EBITDA | 210.0 | 144.5 | 690.4 | 755.9 | |
| Net sales | 1,482.0 | 1,094.2 | 5,178.9 | 5,566.7 | |
| Adjusted EBITDA margin | 14.2% | 13.2% | 13.3% | 13.6% | |
| Equity - Closing balance | 2,186.5 | 2,253.2 | |||
| Total assets (balance sheet total) | 6,220.1 | 6,281.3 | |||
| Equity/asset ratio | 35.2% | 35.9% | |||
| Cash and cash equivalents | 721.2 | 740.8 | |||
| Long-term interest-bearing liabilities | 1,931.9 | 1,875.0 | |||
| Long-term lease liabilities | 122.0 | 120.9 | |||
| Pension liabilities | 70.5 | 70.1 | |||
| Current interest-bearing liabilities | - | 10.6 | |||
| Current lease liabilities | 73.9 | 72.5 | |||
| Net debt | 1,477.1 | 1,408.3 | |||
| Net debt | 1,477.1 | 1,408.3 | |||
| Equity - Closing balance | 2,186.5 | 2,253.2 | |||
| Net debt/equity ratio | 67.6% | 62.5% | |||
| Equity - Opening balance | 2,186.5 | 1,717.4 | 1,717.4 | 1,839.4 | |
| Equity - Closing balance | 2,253.2 | 1,839.4 | 2,186.5 | 2,253.2 | |
| Equity - average | 2,219.9 | 1,778.4 | 1,952.0 | 2,046.3 | |
| Net profit | 77.8 | 70.5 | 328.7 | 336.0 | |
| Return on equity | 14.0% | 15.9% | 16.8% | 16.4% | |
| Equity - average | 2,219.9 | 1,778.4 | 1,952.0 | 2,046.3 | |
| Net Debt - opening balance | 1,477.1 | 1,067.8 | 1,067.8 | 1,105.9 | |
| Net Debt - closing balance | 1,408.3 | 1,105.9 | 1,477.1 | 1,408.3 | |
| Net Debt - average | 1,442.7 | 1,086.9 | 1,272.5 | 1,257.1 | |
| Operating capital - average | 3,662.6 | 2,865.3 | 3,224.5 | 3,303.4 | |
| Adjusted operating profit | 147.5 | 98.3 | 488.6 | 537.8 | |
| Return on operating capital | 16.1% | 13.7% | 15.2% | 16.3% | |
| Net debt | 1,477.1 | 1,408.3 | |||
| Adjusted EBITDA | 690.4 | 755.9 | |||
| Net debt/Adjusted EBITDA, multiple | 2.1 | 1.9 | |||
| Profit before tax | 438.8 | 449.0 | |||
| Financial expense | 64.4 | 83.7 | |||
| Acquisition cost | 8.4 | 8.7 | |||
| Restructuring costs EBT excluding financial expenses, acquisition costs and restructuring costs |
- | 20.0 | |||
| Financial expense | 511.6 64.4 |
561.4 83.7 |
|||
| Interest cover ratio, multiple | 7.9 | 6.7 |
| 1 Jan-31 Mar | |||
|---|---|---|---|
| SEK million | 2023 | 2022 | 2022 |
| Incoming orders, same period in previous year | 1,344.8 | 1,035.2 | 4,622.9 |
| Change in incoming orders, organic | -44.0 | 233.9 | 218.2 |
| Change in incoming orders, currency effects | 80.3 | 73.5 | 382.9 |
| Change in incoming orders, acquisitions | 123.4 | 2.2 | 200.8 |
| Incoming orders | 1,504.5 | 1,344.8 | 5,424.8 |
| Order growth, organic | -3.3% | 22.6% | 4.8% |
| Order growth, currency effects | 6.0% | 7.1% | 8.2% |
| Order growth, acquisitions | 9.2% | 0.2% | 4.3% |
| Order growth | 11.9% | 29.9% | 17.3% |
| Net sales, comparative period previous year | 1,094.2 | 868.0 | 4,041.8 |
| Change in net sales, organic | 184.1 | 159.7 | 555.0 |
| Change in net sales, currency effects | 85.7 | 65.3 | 388.2 |
| Change in net sales, acquisitions | 118.0 | 1.2 | 193.9 |
| Net sales | 1,482.0 | 1,094.2 | 5,178.9 |
| Sales growth, organic | 16.8% | 18.4% | 13.7% |
| Sales growth, currency effects | 7.8% | 7.6% | 9.6% |
| Sales growth, acquisitions | 10.8% | 0.1% | 4.8% |
| Sales growth | 35.4% | 26.1% | 28.1% |
Nederman is exposed to a number of risks that could significantly impact the group's operations, earnings and financial position. Nederman conducts continuous risk assessments that include identifying the risks that impact the group and taking measures to manage these risks. Nederman does not calculate the economic value of all risks because many of them are highly complex and interrelated. However, the practical management of these risks is facilitated in several different ways, including through group-wide policies, business processes, training, internal controls, and processes for the audit and approval of reports. Nederman group's risks are organised into four categories: Strategic risks, Operating risks, Compliance risks and Financial risks. For a more detailed description of these risks, refer to the Risk management section on pages 84-85 and in note 3 of the Nederman group's 2022 Annual and Sustainability Report.
| 1 Jan-31 Mar | Full year | Apr-Mar | ||
|---|---|---|---|---|
| SEK million | 2023 | 2022 | 2022 | 12 months |
| Net sales | 5.4 | 7.7 | 19.4 | 17.1 |
| Administrative expenses | -43.7 | -36.2 | -162.3 | -169.8 |
| Research and development expenses | -3.0 | - | -0.1 | -3.1 |
| Other operating revenue and expenses | -0.5 | 0.2 | 3.9 | 3.2 |
| Operating profit/loss | -41.8 | -28.3 | -139.1 | -152.6 |
| Result from investment in subsidiaries | - | - | 129.3 | 129.3 |
| Other financial items | 0.3 | 0.3 | -10.9 | -10.9 |
| Profit/loss after financial items | -41.5 | -28.0 | -20.7 | -34.2 |
| Appropriations | - | - | 131.1 | 131.1 |
| Profit/loss before tax | -41.5 | -28.0 | 110.4 | 96.9 |
| Taxes | 3.5 | -0.3 | -0.6 | 3.2 |
| Net profit/loss for the period | -38.0 | -28.3 | 109.8 | 100.1 |
| 1 Jan-31 Mar | Full year | Apr-Mar | ||
|---|---|---|---|---|
| SEK million | 2023 | 2022 | 2022 | 12 months |
| Net profit/loss | -38.0 | -28.3 | 109.8 | 100.1 |
| Other comprehensive income for the period, net of tax | - | - | - | - |
| Total comprehensive income for the period | -38.0 | -28.3 | 109.8 | 100.1 |
| 31 March | 31 March | 31 Dec | |
|---|---|---|---|
| SEK million | 2023 | 2022 | 2022 |
| Assets | |||
| Total fixed assets | 2,345.8 | 2,320.0 | 2,326.6 |
| Total current assets | 242.6 | 116.7 | 240.1 |
| Total assets | 2,588.4 | 2,436.7 | 2,566.7 |
| Shareholders' Equity | 984.8 | 1,007.5 | 1,022.8 |
| Liabilities | |||
| Total long-term liabilities | 1,104.7 | 1,113.1 | 1,104.5 |
| Total current liabilities | 498.9 | 316.1 | 439.4 |
| Total liabilities | 1,603.6 | 1,429.2 | 1,543.9 |
| Total equity and liabilities | 2,588.4 | 2,436.7 | 2,566.7 |
| 31 March | 31 March | 31 Dec | |
|---|---|---|---|
| SEK million | 2023 | 2022 | 2022 |
| Opening balance at beginning of period | 1,022.8 | 1,035.8 | 1,035.8 |
| Net profit/loss | -38.0 | -28.3 | 109.8 |
| Other comprehensive income | |||
| Total other comprehensive income for the period | - | - | - |
| Total comprehensive income for the period | -38.0 | -28.3 | 109.8 |
| Transactions with owners | |||
| Dividend paid | - | - | -122.8 |
| Closing balance at end of period | 984.8 | 1,007.5 | 1,022.8 |
| 31 March | 31 March | 31 Dec | |
|---|---|---|---|
| SEK million | 2023 | 2022 | 2022 |
| Contingent liabilities | 114.3 | 114.9 | 102.8 |
The Board and CEO confirm that the interim report provides a true and fair overview of the parent company and the group's operations, position and earnings and describes the material risks and uncertainty factors faced by the parent company and the group. The report has not been reviewed by the company's auditor.
The Board
| MEASURE | DEFINITION | PURPOSE |
|---|---|---|
| Return on equity |
Net profit for the year after tax divided by average equity. | Return on equity shows the return on owners' capital in accounting terms. This measure is primarily used to analyse owner profitability over time. |
| Return on operating capital |
Adjusted operating profit as a percentage of average operating capital. |
A profitability measure that shows the return on the capital used to operate the core busi ness. Return on operating capital is one of Nederman group's long-term financial targets. |
| EBITA | Operating profit before amortisation and impairment of intangible assets. |
EBITA is reported because this is a measure often monitored by investors, analysts and other stakeholders to measure the company's financial results. The measure excludes the amortisation and impairment of intangible assets. |
| EBITA margin | EBITA as a percentage of sales. | |
| EBITDA | Operating profit before depreciation, amortisation and impairment. |
EBITDA is reported because this is a measure often monitored by investors, analysts and other stakeholders to measure the company's financial results. The measure excludes depreciation, amortisation and impairment, thereby showing the business's capacity to generate resources for investments and payment to financiers. |
| EBITDA margin | EBITDA as a percentage of net sales. | |
| Equity per share |
Equity divided by the average number of shares outstanding. | This measure shows how much equity is represented by each share. |
| Adjusted EBITA | Operating profit before amortisation and impairment of intangible assets, excluding acquisition and restructuring costs. |
Adjusted EBITA is deemed to provide a fair view of the underlying operation's earnings, whereby earnings exclude amortisation and impairment of intangible assets and non recurring items. This is a primary performance measure within the Nederman group in the internal control of the group and the segments. |
| Adjusted EBITA margin |
Adjusted EBITA as a percentage of sales. | The adjusted EBITA margin is one of the Nederman group's long-term profitability targets. Adjusted EBITA margin is deemed to provide a fair view of the underlying operation's pro fitability, when this profitability excludes depreciation, amortisation and impairment, as well as income items that are non-recurring. This is a primary performance measure within the Nederman group in the internal control of the group and the segments. |
| Adjusted EBITDA | Operating profit before depreciation, amortisation and impairment, excluding acquisition and restructuring costs. |
Adjusted EBITDA is recognised because this is a measure often monitored by investors, analysts and other stakeholders to measure the company's financial results. The measure excludes depreciation, amortisation and impairment, as well as non-recurring items. The measure shows the business's capacity for investments and payment to financiers. |
| Adjusted EBITDA margin |
Adjusted EBITDA as percentage of sales. | |
| Adjusted EBITDA/ Net financial items |
Adjusted EBITDA divided by net financial items | The performance measure shows how many times current earnings (adjusted EBITDA) covers the company's net financial items. |
| Adjusted operating profit |
Operating profit excluding acquisition and restructuring cost. | Shows the result from operational activities excluding non-recurring items. |
| Adjusted operating margin |
Adjusted operating profit as a percentage of net sales. | |
| Capital turnover rate |
Net sales divided by average operating capital. | Shows the efficiency of the use of operating capital. |
| Net debt | Interest-bearing liabilities (including pensions) less cash and cash equivalents. |
The measurement shows debt and is used to monitor the debt trend and to identify the need for refinancing. This measure comprises a component of the debt ratio. |
| Net debt/ adjusted EBITDA |
Net debt divided by adjusted EBITDA. | The performance measure shows how many times greater net debt is in relation to adjusted EBITDA. This is a performance measure monitored by investors, analysts and other stakeholders. |
| Net debt /equity ratio |
Net debt divided by equity. | A measure that shows the loan-to-value ratio, which comprises the correlation between debt and equity. This makes it a measure of financial position and stability. A good level of net debt/equity ratio provides favourable conditions for growth opportunities, while the dividend policy can be upheld. |
| Operating capital | Equity plus net debt. | Operating capital shows how much capital there is in the operation. This measure is mainly used to calculate the return on operating capital. |
| Organic growth | Growth rate that does not come from acquisitions or currency effects, compared with the corresponding period in the preceding year. |
Organic growth enables a comparison over time for the companies that have been a part of the Nederman group for more than 12 months, excluding effects of changed exchange rates. The measure is used to show the ability to generate growth in existing operations. |
| Earnings per share (before dilution) |
Net profit for the year attributable to parent company shareholders in relation to the average number of shares outstanding. |
Earnings per share shows how much of the period's earnings that each share provides entitlement to. |
| Earnings per share (after dilution) |
Net profit for the year attributable to parent company shareholders in relation to the average number of shares outstanding plus the average number of convertibles and warrants, as calculated in accordance with IAS 33. |
|
| Interest-coverage ratio |
Profit before tax with a reversal of financial expenses and acquisition costs in relation to financial expenses. |
The performance measure shows the capacity to cover the financial expenses. The performance measure states how many times the group's earnings cover the financial expenses. |
| Operating profit | Operating profit after depreciation, amortisation and impairment. |
Shows the earnings from operational activities. |
| Operating margin | Operating profit as a percentage of net sales. | |
| Equity/assets ratio | Equity divided by total assets (balance sheet total). | This performance measure reflects the company's financial position and thus its long term payment capacity. A healthy equity/assets ratio, in other words, a strong financial position, provides the requirements to be able to manage weak economic periods and to capitalise on future growth opportunities. |
| Currency neutral growth |
Currency neutral growth is the growth rate that does not come from currency effects, compared with the correspon ding period in the preceding year. |
Currency neutral growth comprises organic growth plus growth from acquired subsidia ries, which are deemed to provide a fair view of the operations' development. Currency neutral growth is one of Nederman group's long-term financial targets. |
| Annual average | Average of the balance at the beginning and end of the year. |
A telephone conference regarding the report will be held, in English, today, Monday 24 April 2023 at 10.00. Nederman's President and CEO, Sven Kristensson and CFO, Matthew Cusick will present the report and answer questions
Please register on the link below if you wish to participate via teleconference. After registration you will be provided phone numbers and a conference ID to access the conference. You can ask questions verbally via the teleconference.
https://conference.financialhearings.com/teleconference/?id=5003156
If you wish to participate via webcast please use the link below. https://ir.financialhearings.com/nederman-q1-2023
This report contains forward-looking statements that are based on the current expectations of Nederman's management. Although management believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove correct. Accordingly, results could differ materially from those implied in the forward-looking statements as a result of, among other factors, changes in economic, market and competitive conditions, changes in the regulatory environment and other government actions, fluctuations in exchange rates and other factors.
Nederman is required to disclose the information provided herein according to the Swedish Securities Exchange and Clearing Operations Act and/or the Financial Instrument Trading Act. The information has been made public at 08.00 CET on 24 April 2023 kl 08.00.
Sven Kristensson, CEO Telephone: +46 (0)42-18 87 00 e-mail: [email protected]
Matthew Cusick, CFO Telephone: +46 (0)42-18 87 00 e-mail: [email protected]
www.nedermangroup.com
Nederman Holding AB (publ), Box 602, 251 06 Helsingborg, Sweden Telephone +46 (0)42-18 87 00 Swedish corporate identity no.: 556576-4205
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Nederman is a world-leading environmental technology company that develops products and systems for advanced air filtration. Our products and solutions protect people, planet and production from the harmful effects of industrial processes. Our offering comprises individual products, complete future-proof IIoT solutions, project design, installation, commissioning and service.
Our head office is located in Helsingborg and we currently have about 2,400 employees, with manufacturing in 13 countries and sales in more than 50 markets through our own sales organisation, agents or resellers.
All of Nederman's products are designed to promote health and safety, enhance production efficiency and minimise the customers' environmental impact. We lead the development of digital products and solutions that future-proof our customers' operations in terms of energy use, recycling and compliance with regulatory requirements. Sales of individual products, small and medium-sized systems, and major system solutions with a high degree of customisation comprise the majority of the Group's sales. The sale of products and solutions provides a broad customer base that drives our service sales.
A key feature of our offering is the ability to guarantee our customers the highest possible availability for their solutions. Our starting point is that we must be the alternative that offers the customer the lowest total cost over the life cycle of the solution. In addition to high-quality products, this means that we offer qualified service with a high level of availability to ensure continuous operation. The offering includes technical service, service contracts, spare parts and consumables.
Since the start, Nederman has developed a broad and competitive product programme. This programme, combined with a comprehensive sales network and significant investments in new technology, is the foundation for our leading position in a global market. Size and market breadth give us economies of scale in terms of product development, purchasing and production. Nederman is already the segment leader in EMEA, but is now also second-largest in the vital Americas market and in the top five in APAC. This provides a strong platform on which to build further.
Today, Nederman addresses its market with a strong portfolio of brands. Our strategy is that each individual brand is to bring cutting-edge competence to the Group in a specific product area or market segment. Accordingly, we have the possibility to meet many different customer needs and market segments, in both mature and emerging markets. The brand portfolio is continuously evaluated, while we simultaneously actively analyse potential acquisitions.
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