Nederman Holding

Quarterly Report • Oct 20, 2015

Interim report January–September 2015

Growth in all segments in Q3

Quarter 3

• Incoming orders amounted to SEK 846.7m (701.1), which after adjustments is an increase of 10.7%* compared with the same period last year.
• Net sales amounted to SEK 796.7m (733.0), which after adjustments is a decrease of 1.6% * compared with the same period last year.
• Operating profit excluding acquisition costs and restructuring costs was SEK 71.6m (61.4). The adjusted operating margin was 9.0% (8.4).
• Restructuring costs in the period amounted to SEK 20.0m (10.0).
• Operating profit was SEK 51.4m (51.4). The operating margin was 6.5% (7.0).
• Net profit was SEK 28.7m (28.7).
• Earnings per share were SEK 2.45 (2.44).

January-September

• Incoming orders amounted to SEK 2,439.6m (2,025.7), which after adjustments is an increase of 8.1%* compared with the same period last year.
• Net sales amounted to SEK 2,299.4 (2,020.0), which after adjustments is an increase of 1.3%* compared with the same period last year.
• Operating profit excluding acquisition costs and restructuring costs was SEK 174.0m (118.1). The adjusted operating margin was 7.6% (5.8).
• Restructuring costs in the period amounted to SEK 20.0m (30.0).
• Operating profit was SEK 153.8m (88.1). The operating margin was 6.7% (4.4).
• Net profit was SEK 91.5m (47.3).
• Earnings per share were SEK 7.83 (4.03).

* ) adjusted for currency effects and acquisitions

CEO's comments

"In the third quarter of 2015 Nederman saw organic growth in incoming orders within all of its operating segments. In the EMEA segment, the core business of product sales, small systems and aftermarket continues to develop well. Development in the APAC region was strong in Q3 as some of the larger projects that we have been awaiting in China and South East Asia were implemented. The market in the APAC segment remains uncertain. Meanwhile, incoming orders in the Americas remain strong and reached a very good level of growth in Q3.

Profitability in general continued to progress positively in the quarter. The EMEA segment continues to improve its profitability, thanks to good volumes, a favourable mix and improvements in efficiency. The Americas reported a weaker quarter due to an unfavourable mix of larger projects. Profitability in the Americas is expected to return to earlier level in the coming quarters.

In order to achieve the best possible efficiency, a decision was made in Q3 to implement additional measures in the EMEA and APAC segments, which meant that a reserve was made for a further SEK 20m in restructuring costs.

In the EMEA segment, as part of the latest efficiency programme, it has emerged that

further parts of the sales and support organization can be optimised and this work will now take place. In the APAC segment the aim is to adapt parts of the organization to the current market situation. These adjustments will not include China and will not affect our view of the long-term potential in APAC. The agreed measures are expected to generate annual savings of around SEK 15m starting from the middle of next year."

Sven Kristensson, CEO

Key figures, Group

Operating key figures, Group

Excluding restructuring costs and acquisition costs

	1 July-30 Sep		1 Jan-30 Sep		Full year	Oct-Sep
SEK m	2015	2014	2015	2014	2014	12 months
Net sales EBITDA	796.7 83.4	733.0 73.3	2,299.4 210.3	2,020.0 153.0	2,826.9 247.9	3,106.3 305.1
EBITDA-margin, %	10.5	10.0	9.1	7.6	8.8	9.8
Operating profit	71.6	61.4	174.0	118.1	200.7	256.6
Operating margin, %	9.0	8.4	7.6	5.8	7.1	8.3
Return on operating capital, %	20.3	19.4	17.0	12.8	16.2	18.9
Net debt/EBITDA, multiple					2.2	2.2

Financial key figures, Group

Including restructuring costs and acquisition costs

1 July-30 Sep		1 Jan-30 Sep		Full year	Oct-Sep
2015	2014	2015	2014	2014	12 months
796.7 51.4 6.5 41.3 28.7 2.45 14.8	733.0 51.4 7.0 44.2 28.7 2.44 18.1	2,299.4 153.8 6.7 132.7 91.5 7.83 16.1	2,020.0 88.1 4.4 70.5 47.3 4.03 9.9	2,826.9 165.7 5.9 139.0 94.3 8.05 13.9	3,106.3 231.4 7.4 201.2 138.5 11.86 19.3 657.3
				75.9	84.0 7.9
					556.6 7.0

Development per operating segment

EMEA

The EMEA segment reported yet another quarter of growth driven by core business in product sales and the aftermarket. Profitability continued to progress positively primarily due to improved margins and lower costs. The efficiency programme announced in Q1 2014 is proceeding according to plan and will be completed by the end of 2015. As part of the implementation of this programme it has emerged that further parts of the sales and support organization can be optimised and this work will now take place.

The structural growth during the quarter and the effect on the full-year figures is related to the acquisition of Filtac AB from 1 September. We expect that this unit will contribute to the growth of the operating segment going forward.

The Nordic region reported positive development in Q3 compared with the same period last year, mainly because of a large order from a leading kitchens manufacturer in Sweden. Invoicing also progressed well during the quarter.

The Benelux countries continued to show good progress with increased incoming orders. During the quarter a large order was booked from the state-owned transport sector in Belgium. Performance overall in the Netherlands was weaker although product sales and the aftermarket performed positively.

Incoming orders in the Czech Republic and Slovakia developed positively thanks to continued good sales to suppliers in the transport sector.

The UK and Ireland, which have reported positive development for a considerable time, received fewer orders compared with the same period last year.

Germany reported lower incoming orders in the quarter as a result of not receiving any larger project orders.

Incoming orders in Southern Europe climbed compared with last year mainly due to a stronger performance in France compared with Q3 in 2014.

		1 July - 30 Sep	1 Jan - 30 Sep		Organic	Full year	Oct - Sep
SEK m	2015	) 2014**	2015	) 2014**	growth,%	) 2014**	12 months
Incoming orders	332.2	317.4	1,076.9	986.4	5.3%	1,345.6	1,436.1
Net Sales	359.7	350.6	1,049.3	1,032.6	-2.2%	1,413.7	1,430.4
Depreciation	-5.2	-5.8	-16.1	-17.4		-23.4	-22.1
Operating Profit *)	54.1	31.6	117.1	69.3		110.4	158.2
Operating margin, %*)	15.0	9.0	11.2	6.7		7.8	11.1

* ) excluding restructuring costs and acquisition costs.

**) comparable figures for 2014 have been adjusted in accordance with minor structural changes in the organization.

Incoming orders for the period amounted to SEK 332.2m, which is a rise of 2.0 per cent adjusted for currency effects and acquisitions, compared to the same period last year.

Incoming orders for the January-September period increased by 5.3 per cent adjusted for currency effects and acquisitions compared to last year.

Net sales for the period amounted to SEK 359.7m, which is a decrease of 0.8 per cent adjusted for currency effects and acquisitions compared to the same period last year.

Net sales for the January-September period decreased by 2.2 per cent adjusted for currency effects and acquisitions compared to last year.

Asia Pacific

In the Asia Pacific (APAC) operating segment, there was good development in Q3, with several large orders received in China and South-East Asia. Incoming orders rose on all markets.

In China, incoming orders increased compared with the corresponding quarter last year. Primarily sales of large systems progressed well as the drawn-out decision-making we had seen earlier in the year finally resulted in orders for various projects. A breakthrough was achieved in the market for flue gas treatment within district heating.

Incoming orders in South-East Asia were better than the same quarter last year, especially in Thailand and Vietnam, although sales in Malaysia and Indonesia also developed positively.

India showed very positive development in the quarter compared with last year. Our strategy of building our business with local purchasing of components and assembly of selected parts of the product range has started to have an impact, with higher orders in the chemicals and foundry segments, among others.

In Australia development was slightly positive in the quarter compared with the same period last year. The market continues to be affected by low demand in the raw materials sector and no significant change is expected in coming quarters.

		1 July - 30 Sep	1 Jan - 30 Sep		Organic	Full year	Oct - Sep
SEK m	2015	) 2014**	2015	) 2014**	growth,%	) 2014**	12 months
Incoming orders	113.4	70.2	269.4	259.8	-13.5%	362.4	372.0
Net Sales	101.2	100.5	256.7	221.2	-1.3%	336.3	371.8
Depreciation	-1.2	-1.9	-4.2	-4.4		-6.4	-6.2
Operating Profit *)	-1.0	1.3	-13.9	-4.4		4.1	-5.4
Operating margin, %*)	-1.0	1.3	-5.4	-2.0		1.2	-1.5

* ) excluding restructuring costs and acquisition costs.

**) comparable figures for 2014 have been adjusted in accordance with minor structural changes in the organization.

Incoming orders for the period amounted to SEK 113.4m, which is an increase of 48.3 per cent adjusted for currency effects and acquisitions, compared to the same period last year.

Incoming orders until September fell by 13.5 per cent adjusted for currency effects and acquisitions, compared to last year.

Net sales for the period amounted to SEK 101.2m, which is a decrease of 12.8 per cent adjusted for currency effects and acquisitions, compared to the same period last year.

Net sales until September, fell by 1.3 per cent adjusted for currency effects and acquisitions, compared to last year.

Americas

Incoming orders in the Americas operating segment developed positively in Q3. Demand remains high in this segment and has resulted in a high number of inquiries. However, profitability showed a negative trend, mainly due to an unfavourable mix of sales between business areas and markets in this segment. Profitability in the Americas is expected to return to previous levels in the coming quarters.

In the US incoming orders increased in Q3 compared with the corresponding period last year. Development was positive within most business areas. During the period it was primarily the metals recycling industry that distinguished itself with several large orders received within Engineered Solutions.

Incoming orders in Canada were lower in Q3 compared with the same period last year. The main reason was the continued fall of raw material prices, which negatively affected investment enthusiasm.

Incoming orders in Brazil progressed very positively in Q3. Despite the ongoing weak economic situation in the country, Nederman continued to win market share. The positive development is the result of several years of investment in a larger market presence, competence build-up and local assembly. Stricter control by the authorities on compliance with working environment conditions and emissions reduction also had a positive impact.

The establishment of a stronger sales structure in Mexico progressed according to plan.

		1 July - 30 Sep	1 Jan - 30 Sep		Organic	Full year	Oct - Sep
SEK m	2015	) 2014**	2015	) 2014**	growth,%	) 2014**	12 months
Incoming orders	401.1	313.5	1,093.3	779.5	19.3%	1,056.8	1,370.6
Net Sales	335.8	281.9	993.4	766.2	7.5%	1,076.9	1,304.1
Depreciation	-3.3	-2.2	-9.5	-6.7		-9.0	-11.8
Operating Profit *)	33.7	43.6	118.5	98.7		144.9	164.7
Operating margin, %*)	10.0	15.5	11.9	12.9		13.5	12.6

* ) excluding restructuring costs and acquisition costs.

**) comparable figures for 2014 have been adjusted in accordance with minor structural changes in the organization.

Incoming orders for the period amounted to SEK 401.1m, which is an increase of 11.9 per cent adjusted for currency effects and acquisitions, compared to the same period last year.

Incoming orders until September rose by 19.3 per cent adjusted for currency effects and acquisitions, compared to last year.

Net sales for the period amounted to SEK 335.8m, which is a rise of 1.3 per cent adjusted for currency effects and acquisitions, compared to the same period last year.

Net sales until September, rose by 7.5 per cent adjusted for currency effects and acquisitions, compared to last year.

Acquisition

During Q3 Nederman acquired 100% of the shares in the Swedish company, Filtac AB.

Filtac has an estimated sales of around SEK 50m and has its registered office in Kinna, Västergötland. The company has 15 employees.

The acquisition of Filtac gives Nederman access to world-leading technology and indepth expertise about the capture and filtration of the oil mist that occurs in metal processing. When combined with Nederman's global sales network, we gain a strong position on a very interesting market.

The integration of Filtac has already started and should be completed by the end of the year.

Restructuring

During the quarter Nederman decided to implement additional measures aimed at improving efficiency. These activities will cover the EMEA and APAC operating segments. In the EMEA segment, as part of the latest efficiency programme decided in the spring of 2014, it has emerged that further parts of the sales and support organization can be optimised. In the APAC segment the aim is to adapt parts of the organization to current market demand. These adjustments will not include China and will not affect our view of the long-term potential in APAC. The total restructuring costs relating to the above measures amount to SEK 20m and have impacted on results for Q3. The related annual savings are expected to amount to around SEK 15m and should be realised starting from the middle of next year.

Outlook

The outlook reported in our previous interim report remains unchanged. Good demand in the Americas is expected to continue, as is the underlying cautiously positive trend in the EMEA segment. The APAC segment will continue to be exposed to volatility in demand with ongoing drawn-out decision-making regarding investment projects.

Quarter 3

Sales and incoming orders

Incoming orders were SEK 846.7m (701.1), which adjusted for currency effects and acquisitions is an increase of 10.7 per cent compared to the same quarter last year.

Net sales amounted to SEK 796.7m (733.0), which adjusted for currency effects and acquisitions is a decrease of 1.6 per cent compared to the same quarter last year.

Earnings

The Group's operating profit for the quarter was SEK 51.4m (51.4). Adjusted for acquisition costs and restructuring costs, the operating profit was SEK 71.6m (61.4), giving an operating margin of 9.0 per cent (8.4).

Restructuring costs during the period amounted to SEK 20.0m (10.0).

The profit before tax decreased to SEK 41.3m (44.2). The net profit was SEK 28.7m (28.7), giving earnings per share of SEK 2.45 (2.44).

Operating cash flow and capital expenditure

Capital expenditure during the quarter was SEK 13.6m (9.1).

January - September

Sales and incoming orders

Incoming orders was SEK 2,439.6m (2,025.7), which adjusted for currency effects and acquisitions is an increase of 8.1 per cent.

Net sales amounted to SEK 2,299.4m (2,020.0), which adjusted for currency effects and acquisitions is an increase of 1.3 per cent.

Earnings

The operating profit for the period was SEK 153.8m (88.1). Adjusted for acquisition costs and restructuring costs the operating profit was SEK 174.0m (118.1). The operating margin was 7.6 per cent (5.8). The restructuring costs during the period amounted to SEK 20.0m (30,0).

Return on operating capital increased to 17.0 per cent compared to 12.8 per cent last year.

The profit before tax increased to SEK 132.7 (70.5). The net profit was SEK 91.5m (47.3), giving earnings per share of SEK 7.83 (4.03).

Capital expenditure

Capital expenditure during the period was SEK 51.0m (23.8), of which capitalised development costs amounted to SEK 6.3m (1.3). The higher investment level was due to the Group's investment in buildings and machinery in the Americas, the development of the IT system and investment in machinery in the EMEA segment.

Other financial information

Liquidity: At the end of the period the Group had SEK 248.6m in cash and cash equivalents as well as SEK 75.6m in available but unutilised overdraft facilities. In addition there is a loan facility of SEK 137.8m within Nederman's loan agreement with SEB and a further loan facility of SEK 268.2m within Nederman's loan agreement with SHB.

The equity in the Group as of 30 September 2015 amounted to SEK 782.9m (655.3). An ordinary dividend of 4.00 SEK per share was paid to shareholders in the second quarter, amounting in total to SEK 46.7m. The total number of shares outstanding was 11,681,340 at the end of the period.

The equity/assets ratio for the Group was 31.9 per cent as of 30 September 2015 (29.2). The net financial debt/equity ratio, calculated as net debt in relation to equity was 83.9 per cent (94.6).

Number of employees

The average number of employees during the quarter was 1,802 (1,806). The number of employees at the end of the period was 1,906 (1,937).

Risks and uncertainties

The Nederman Group and the parent company are exposed to a number of risks, mainly due to purchasing and selling of products in foreign currencies. The risks and uncertainties are described in detail in the Directors' Report on page 41 and in note 24 of the 2014 Annual Report. No circumstances have arisen to change the assessment of identified risks.

Nominations committee

According to guidelines adopted by the AGM, a nominations committee has been appointed comprising Göran Espelund (chairman), Lannebo Fonder, Anders Mörck, Investment AB Latour, Sophia Pettersson, Ernström & Co and the Chairman of the board Jan Svensson ahead of the AGM in 2016. For questions concerning the work of the nominations committee, please contact: goran.espelund@lannebofonder.se

Accounting policies

The consolidated financial statements are 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, except for amendments mentioned below, as described in the annual report 2014, pages 48-52 applies both to the Group and the parent company. From 1 June 2015 financial instruments will be reported in accordance with hedge accounting rules in IAS 39.

Changes being implemented from 1 January 2015

A number of new standards and amendments of interpretations and existing standards that will come into effect in current and future fiscal years have not been applied when preparing the consolidated reports. None of these changes are expected to have any significant effect on the consolidated financial reports.

IFRS 15, with application for the fiscal year beginning 1 January 2017 at the earliest, will not have any significant effect on reporting of consolidated income.

Financial instruments

Reporting of derivatives used for hedging purposes (cash flow hedge)

All derivatives are initially recognized and subsequently measured at fair value in the balance sheet. When applying hedge accounting, the relationship between the hedging instrument and the hedged item, as well as the assessment of hedge effectiveness, are documented both at the beginning of the transaction and ongoing. Effectiveness is the degree to which the hedging instrument offsets changes in value of the hedged item's fair value or cash flow.

If the hedge accounting criteria are met, the effective portion of changes in fair value on revaluation of derivatives intended for cash flow hedges are reported in other comprehensive income and accumulated in the hedging reserve in equity. The cumulative gain or loss recognized in the hedging reserve is reversed to profit or loss in the same period as the hedged cash flow affects the result. Any ineffective portion of the change in value is recognized directly to profit or loss.

If the hedging relationship is interrupted and cash flow is still expected to occur, the accumulated value change in the hedging reserve is reported until the cash flows attributable to the hedged item affect profit or loss. In cases where the forecast cash flow that forms the basis of the hedging transaction is no longer expected to occur, the cumulative change in value recognized in the hedging reserve is transferred directly to profit or loss.

Voluntary reclassification

The Group has 2014 chosen to reclassify depreciation of research and development projects, to the extent to which they relate to product development, as costs for sold goods. Comparable figures relating to the reclassification have been adjusted. This has meant that research and development costs in 2014 have been reduced by SEK 1.5m and costs for sold goods have increased by the same amount.

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.

This interim report has been given a general review by the company's auditors.

Helsingborg, 20 October 2015

Jan Svensson Chairman

Fabian Hielte Ylva Hammargren Gunnar Gremlin

Member of the board Member of the board Member of the board

Per Borgvall Susanne Pahlén Åklundh Sven Kristensson Member of the board Member of the board Chief Executive Officer

Jonas Svensson Employee representative

Consolidated income statement

			1 July–30 Sep	1 Jan–30 Sep		Full year	Oct-Sep
SEK m	NOTE	2015	2014	2015	2014	2014	12months
Net sales		796.7	733.0	2,299.4	2,020.0	2,826.9	3,106.3
Cost of goods sold		-515.3	-469.7	-1,485.3	-1,295.9	-1,812.7	-2,002.1
Gross profit		281.4	263.3	814.1	724.1	1,014.2	1,104.2
Selling expenses		-154.5	-152.0	-474.2	-456.3	-614.9	-632.8
Administrative expenses		-53.6	-42.5	-161.3	-137.6	-183.9	-207.6
Research and development expenses		-1.2	-2.4	-3.7	-7.5	-10.3	-6.5
Acquisition expenses		-0.2		-0.2			-0.2
Restructuring expenses		-20.0	-10.0	-20.0	-30.0	-35.0	-25.0
Other operating income/expenses		-0.5	-5.0	-0.9	-4.6	-4.4	-0.7
Operating profit		51.4	51.4	153.8	88.1	165.7	231.4
Financial income		0.1	-0.6	2.0	1.6	2.3	2.7
Financial expenses		-10.2	-6.6	-23.1	-19.2	-29.0	-32.9
Net financial income/expenses		-10.1	-7.2	-21.1	-17.6	-26.7	-30.2
Profit/loss before taxes		41.3	44.2	132.7	70.5	139.0	201.2
Taxes		-12.6	-15.5	-41.2	-23.2	-44.7	-62.7
Net profit/loss		28.7	28.7	91.5	47.3	94.3	138.5
Net profit/loss attributable to:
The parent company's shareholders		28.7	28.7	91.5	47.3	94.3	138.5
Earnings per share
before dilution (SEK)		2.45	2.46	7.83	4.05	8.07	11.86
after dilution (SEK)		2.44	2.44	7.80	4.03	8.04	11.83

Consolidated statement of comprehensive income

			1 July-30 Sep	1 Jan-30 Sep		Full year	Oct-Sep
SEK m	NOTE	2015	2014	2015	2014	2014	12 months
Net profit/loss		28.7	28.7	91.5	47.3	94.3	138.5
Other comprehensive income
Items that will not be reclassified to the income statement
Revaluation of defined-benefit pension plans		-0.6	-14.4	-0.2	-14.4	-17.2	-3.0
Income taxes			3.3		3.3	5.2	1.9
		-0.6	-11.1	-0.2	-11.1	-12.0	-1.1
Items that may be reclassified to the income statement
Exchange differences arising on translation of foreign operations		-7.2	23.7	4.7	51.3	84.7	38.1
Cash flow hedge		-0.2		-0.2			-0.2
Income taxes		0.0		0.0			0.0
		-7.4	23.7	4.5	51.3	84.7	37.9
Other comprehensive income for the period, net after tax		-8.0	12.6	4.3	40.2	72.7	36.8
Total comprehensive income for the period		20.7	41.3	95.8	87.5	167.0	175.3
Total comprehensive income attributable to:
The parent company's shareholders		20.7	41.3	95.8	87.5	167.0	175.3

Consolidated statement of financial position

	NOTE	30 Sep	30 Sep	31 Dec
SEK m Assets		2015	2014	2014
Goodwill		680.0	634.4	655.1
Other intangible fixed assets		94.3	80.3	82.4
Tangible fixed assets		262.4	230.7	246.2
Long-term receivables		5.4	5.8	6.1
Deferred tax assets		108.8	91.6	81.7
Total fixed assets		1,150.9	1,042.8	1,071.5
Inventories		354.2	324.8	308.1
Accounts receivable	1	485.4	458.8	496.9
Other receivables	1	218.4	181.4	171.6
Cash and cash equivalents	1	248.6	239.2	325.0
Total current assets		1,306.6	1,204.2	1,301.6
Total assets		2,457.5	2,247.0	2,373.1
Equity		782.9	655.3	733.3
Liabilities
Long-term interest bearing liabilities	1	765.4	720.2	739.7
Other long-term liabilities		1.2	1.7	1.5
Provision for pensions		110.5	107.4	110.8
Other provisions		12.0	11.8	12.0
Deferred tax liabilities		17.3	20.4	17.0
Total long-term liabilities		906.4	861.5	881.0
	1	30.0	31.3	31.1
Current interest bearing liabilities	1	300.2	275.3	327.7
Accounts payable	1	388.8	372.1	359.3
Other current liabilities Provisions		49.2	51.5	40.7
Total current liabilities		768.2	730.2	758.8
Total liabilities		1,674.6	1,591.7	1,639.8
Total equity and liabilities		2,457.5	2,247.0	2,373.1

Consolidated statement of changes in equity in summary

SEK m	30 Sep 2015	30 Sep 2014	31 Dec 2014
Opening balance on 1 January	733.3	619.8	619.8
Net profit	91.5	47.3	94.3
Other comprehensive income
Change in translation reserve	4.7	51.3	84.7
Cash flow hedges, net of tax	-0.2
Revaluation of defined-benefit pension plans, net of tax	-0.2	-11.1	-12.0
Total other comprehensive income for the period	4.3	40.2	72.7
Total comprehensive income for the period	95.8	87.5	167.0
Transactions with owners
Dividend paid	-46.7	-46.7	-46.7
Share-based payments	0.5	1.4	-0.1
Repurchase of own shares		-6.7	-6.7
Closing balance at the end of period	782.9	655.3	733.3

Consolidated cash flow statement

		1 Jan–30 Sep		Full year	Oct-Sep
SEK m	NOTE	2015	2014	2014	12 months
Operating profit		153.8	88.1	months 165.7	231.4
Adjustment for:
Depreciation of fixed assets		36.3	34.9	47.2	48.6
Other adjustments		7.7	-3.8	-15.9	-4.4
Interest received and paid incl. other financial items		-17.6	-9.4	-17.1	-25.3
Taxes paid		-50.6	-34.9	-46.1	-61.8
Cash flow from operating activities before		129.6	74.9	133.8	188.5
changes in working capital
Cash flow from changes in working capital		-100.1	-28.0	10.2	-61.9
Cash flow from operating activities		29.5	46.9	144.0	126.6
Net investment in fixed assets		-47.8	-11.3	-26.2	-62.7
Acquired/divested units	2	-22.4			-22.4
Cash flow before financing activities		-40.7	35.6	117.8	41.5
Dividend paid		-46.7	-46.7	-46.7	-46.7
Cash flow from other financing activities		3.5	-29.7	-31.8	1.4
Cash flow for the period		-83.9	-40.8	39.3	-3.8
Cash and cash equivalents at the beginning of the		325.0	270.0	270.0	325.0
period Translation differences		7.5	10.0	15.7	13.2
Cash and cash equivalents at the end of the period		248.6	239.2	325.0	334.4

Income statement for the parent company in summary

	1 July-30 Sep		1 Jan-30 Sep		Full year	Oct-Sep
SEK m	2015	2014	2015	2014	2014	12 months
Operating loss	-10.6	-6.4	-42.4	-22.7	-57.9	-77.6
Result from investment in subsidiaries	54.9	48.5	163.2	57.5	82.4	188.1
Other financial items	-6.1	-3.8	-7.2	-7.0	-5.7	-5.9
Profit/Loss after financial items	38.1	38.3	113.6	27.8	18.8	104.6
Appropriations					21.5	21.5
Profit/Loss before taxes	38.1	38.3	113.6	27.8	40.3	126.1
Taxes					6.9	6.9
Net Profit/Loss	38.1	38.3	113.6	27.8	47.2	133.0

Statement of comprehensive income for the parent company

	1 July-30 Sep		1 Jan-30 Sep		Full year	Oct-Sep
SEK m	2015	2014	2015	2014	2014	12 months
Net Profit/Loss	38.1	38.3	113.6	27.8	47.2	133.0
Other comprehensive income Items that will not be reclassified to the income statement
Items that may be reclassified to the income statement
Other comprehensive income for the period, net after tax
Total comprehensive income for the period	38.1	38.3	113.6	27.8	47.2	133.0

Balance sheet for the parent company in summary

	30 Sep	30 Sep	31 Dec
SEK m	2015	2014	2014
Assets
Total fixed assets	1,464.5	1,313.3	1,368.9
Total current assets	247.7	221.1	283.6
Total assets	1,712.2	1,534.4	1,652.5
Shareholder's equity	632.1	546.8	564.7
Liabilities
Total long-term liabilities	764.0	718.3	738.2
Total current liabilities	316.1	269.3	349.6
Total liabilities	1,080.1	987.6	1,087.8
Total shareholders' equity and liabilities	1,712.2	1,534.4	1,652.5

Statements of changes in shareholders' equity in summary

SEK m	30 Sep 2015	30 Sep 2014	31 Dec 2014
Opening balance on 1 January	564.7	571.0	571.0
Net profit/loss	113.6	27.8	47.2
Other comprehensive income
Total other comprehensive income for the period
Total comprehensive income for the period	113.6	27.8	47.2
Transactions with owners
Dividend paid	-46.7	-46.7	-46.7
Share-based payments	0.5	1.4	-0.1
Repurchase of own shares		-6.7	-6.7
Closing balance at the end of period	632.1	546.8	564.7

Related parties

SEK m	2015
Subsidiaries
Other operating income	24.7
Dividends received	163.5
Financial income and expenses	7.1
Receivables on 30 Sep	746.6
Liabilities on 30 Sep	262.3

NOTE 1 Fair value and reported value in the statement of financial position

			September 30, 2015
SEK m	Measured at fair value through profit and loss	Derivatives used for hedge accounting	Financial assets and liabilities not recorded at fair value	Total book value
Trade receivables			485.4	485.4
Foreign exchange forward contracts entered *)	0.1	0.3		0.4
Other current receivables			170.1	170.1
Liquid assets			248.6	248.6
Total other receivables	0.1	0.3	904.1	904.5
Financial leasing liabilities			1.1	1.1
Bank loans			794.3	794.3
Accounts payable			300.2	300.2
) Foreign exchange forward contracts entered *	0,5	0.5		1.0
Other current liabilities			341.5	341.5
Total other liabilities	0,5	0.5	1,437.1	1,438.1

*) The Group holds financial instruments in the form of currency futures that are recorded at fair value in the balance sheet. The fair value of currency futures is determined by discounting the difference between the contracted forward rate and the forward rate that can be subscribed on the closing date for the remaining contracted period. Discounting is made using market rates. The fair value for all contracts has been determined from directly or indirectly observable market data, i.e. level 2 according to IFRS 7. For other financial instruments, the fair value and the book value are materially consistent. For further information, refer to note 24 in the 2014 Annual Report.

NOTE 2 Acquisition

On 1 September 2015 the Group acquired the Swedish company, Filtac AB, for a purchase price of SEK 22.9m. The acquisition resulted in an increase in goodwill of SEK 14.9m. The purchase price allocation is preliminary.

Operating segment reporting

Undistributed items primarily constitute costs relating to Nederman Holding AB, which include the central main office departments.

	1 Jan - 30 Sep		Full year	Oct - Sep
SEK m	2015	) 2014**	) 2014**	12 months
EMEA
Incoming orders	1,076.9	986.4	1,345.6	1,436.1
Net sales	1,049.3	1,032.6	1,413.7	1,430.4
Depreciation	-16.1	-17.4	-23.4	-22.1
Operating profit *)	117.1	69.3	110.4	158.2
Operating margin, %*)	11.2	6.7	7.8	11.1
Asia Pacific
Incoming orders	269.4	259.8	362.4	372.0
Net sales	256.7	221.2	336.3	371.8
Depreciation	-4.2	-4.4	-6.4	-6.2
Operating profit *)	-13.9	-4.4	4.1	-5.4
Operating margin, %*)	-5.4	-2.0	1.2	-1.5
Americas
Incoming orders	1,093.3	779.5	1,056.8	1,370.6
Net sales	993.4	766.2	1,076.9	1,304.1
Depreciation	-9.5	-6.7	-9.0	-11.8
Operating profit *)	118.5	98.7	144.9	164.7
Operating margin, %*)	11.9	12.9	13.5	12.6
Not allocated
Depreciation	-6.5	-6.4	-8.4	-8.5
Operating profit /loss*)	-47.7	-45.5	-58.7	-60.9
Group
Incoming orders	2,439.6	2,025.7	2,764.8	3,178.7
Net sales	2,299.4	2,020.0	2,826.9	3,106.3
Depreciation	-36.3	-34.9	-47.2	-48.6
Operating profit *)	174.0	118.1	200.7	256.6
Acquisition costs	-0.2			-0.2
Restructuring and integration costs	-20.0	-30.0	-35.0	-25.0
Operating profit	153.8	88.1	165.7	231.4
Profit before tax	132.7	70.5	139.0	201.2
Net profit	91.5	47.3	94.3	138.5

* ) excluding restructuring costs and acquisition costs.

**) comparable figures for 2014 have been adjusted in accordance with minor structural changes in the organization.

Invitation to telephone conference

A telephone conference in English will be held to discuss this interim report at 2 p.m. on Tuesday 20 October.

Nederman's CEO and Group President Sven Kristensson and CFO Stefan Fristedt will present the report and answer questions.

To participate call 08-566 42 663 In Sweden, or +44 203 428 1434 in the UK. The conference will also be transmitted on the internet.

Visit our website www.nederman.se/telekonf to see the presentation and find the link.

Dates for the publication of financial information

Financial Statement 2015 10 February 2016 Q1 Report 20 April 2016 Annual General Meeting 20 April 2016

Review report

Nederman Holding AB, corporate identity number 556576-4205

Introduction

We have reviewed the condensed interim report for Nederman Holding AB as at September 30, 2015 and for the nine months period then ended. The Board of Directors and the Managing Director are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.

Scope-of-review

We conducted our review in accordance with the International Standard on Review Engagements, ISRE 2410 Review of Interim Financial Statements Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and other generally accepted auditing standards in Sweden. The procedures performed in a review do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act regarding the Group, and in accordance with the Swedish Annual Accounts Act regarding the Parent Company.

Other-matters

The review of the condensed interim report for September 30, 2014 was performed by another auditor who submitted a review report dated 16 October, 2014 with unmodified conclusion.

Helsingborg, October 20, 2015

Ernst & Young AB

Staffan Landén Authorized Public Accountant

This report contains forward-looking statements that are based on the current expectations of the management of Nederman. 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 was submitted for publication on 20 October 2015 at 12 noon.

Further information can be obtained from

Sven Kristensson. CEO Stefan Fristedt. CFO Telephone +46 (0)42-18 87 00 Telephone +46 (0)42-18 87 00 e-mail: sven.kristensson@nederman.se e-mail: stefan.fristedt@nederman.se

For further information. see Nederman's website www.nederman.com

Nederman Holding AB (publ). Box 602. SE-251 06 Helsingborg. Sweden Telephone +46 (0)42-18 87 00. Telefax +46 (0)42-18 77 11 Co. Reg. No. 556576-4205

Facts about Nederman

Nederman is one of the world's leading companies supplying products and systems in the environmental technology sector focusing on industrial air filtration and recycling. The company's solutions are contributing to reducing the environmental effects from industrial production, to creating safe and clean working environments and to boosting production efficiency.

Nederman's offering encompasses everything from the design stage through to installation, commissioning and servicing. Sales are carried out via subsidiaries in 25 countries and agents and distributors in over 30 countries. Nederman develops and produces in its own manufacturing and assembly units in Europe, North America and Asia.

The Group is listed on the Nasdaq OMX, Stockholm Mid Cap list; it has about 1,900 employees and a turnover of about SEK 3.0 billion.