Nederman Holding

Quarterly Report • Jul 14, 2014

Interim report January–June 2014

Positive performance in Asia Pacific and the Americas

Quarter 2

• Incoming orders amounted to SEK 704.3m (659.0), which adjusted is an increase of 5.8%* compared with the same period last year.
• Net sales amounted to SEK 663.8m (706.2), which adjusted is a decrease of 7.5%* compared with the same period last year.
• Operating profit excluding acquisition costs and restructuring costs was SEK 38.1m (44.6). The adjusted operating margin was 5.7% (6.3).
• Operating profit was SEK 28.1m (44.5). The operating margin was 4.2% (6.3).
• Net profit was SEK 17.1m (31.1).
• Earnings per share were SEK 1.46 (2.65).

January-June

• Incoming orders amounted to SEK 1,324.6m (1,347.6), which adjusted is a decrease of 2.6 %* compared with the same period last year.
• Net sales amounted to SEK 1,287.0m (1,326.1), which adjusted is a decrease of 4.0 %* compared with the same period last year.
• Operating profit excluding acquisition costs and restructuring costs was SEK 56.7m (61.3). The adjusted operating margin was 4.4% (4.6).
• Operating profit was SEK 36.7m (40.7). The operating margin was 2.9% (3.1).
• Operating profit was affected by SEK 20.0m in restructuring costs (20.0). No acquisitions are made (0.6).
• Net profit was SEK 18.6m (22.9).
• Earnings per share were SEK 1.59 (1.95).

* adjusted for currency effects and acquisitions

CEO's comments

Incoming orders progressed positively in the quarter, with organic growth of 5.8%. Asia Pacific reported very strong incoming orders in the quarter, including a number of significant orders in China and South East Asia. Stable development continued in the Americas, with contributions from both North and South America. Demand remains weak in Europe and is, as previously announced, primarily related to sales of larger system solutions. This development is being driven by the fact that industrial investment in general in Europe is at a low level.

Profitability improved compared with Q1, mostly because of the higher sales volume. After the first six months of the year the operating margin is around the same level as last year.

The announced efficiency measures concerning business activities within EMEA are proceeding according to plan and earnings have been affected by a further SEK 10 million in the quarter, which means that SEK 20 million of the total non-recurring costs of SEK 35 million have now been spent.

Sven Kristensson, CEO

Key figures, Group

Operating key figures, Group

Excluding restructuring/integration costs, acquisition costs and capital gains on disposal of subsidiaries.

	1Apr-30 June		1 Jan-30 June		Full year	July-June
SEK m	2014	2013	2014	2013	2013	12 months
Net sales	663.8	706.2	1,287.0	1,326.1	2,659.2	2,620.1
EBITDA	49.5	57.0	79.7	85.8	219.4	213.3
EBITDA-margin, %	7.5	8.1	6.2	6.5	8.3	8.1
Operating profit	38.1	44.6	56.7	61.3	170.2	165.6
Operating margin, %	5.7	6.3	4.4	4.6	6.4	6.3
Operating cash flow	44.8	36.3	43.3	48.1	226.7	221.9
Return on operating capital, %	12.3	14.4	9.3	9.9	14.2	13.1
Net debt/EBITDA, multiple *)					2.6	3.0
Interest cover ratio					5.8	5.8

Financial key figures, Group

Including restructuring/integration costs, acquisition costs and capital gains on disposal of subsidiaries.

	1Apr-30 June			1 Jan-30 June		July-June
SEK m	2014	2013	2014	2013	2013	12 months
Operating profit	28.1	44.5	36.7	40.7	127.5	123.5
Operating margin, %	4.2	6.3	2.9	3.1	4.8	4.7
Profit/loss before tax	24.1	39.4	26.3	28.5	99.7	97.5
Net profit/loss	17.1	31.1	18.6	22.9	69.7	65.4
Earnings per share, SEK	1.46	2.65	1.59	1.95	5.94	5.58
Return on shareholders´ equity, %	11.1	21.6	6.0	7.8	11.4	11.0
Net debt					570.9	639.2
Net debt/equity ratio, %					92.1	104.2

Development per operating segment

EMEA

During Q2 demand on most markets in the EMEA operating segment has been weak with low incoming orders as a result. Incoming orders for systems were most negatively affected. Product sales were in line with last year and service sales progressed positively during the quarter.

In the Nordic region, incoming orders declined in Q2. There was positive progress in Sweden, where incoming orders climbed compared with Q2 last year. However in Denmark and Norway incoming orders were down.

Demand in Germany and Poland remained weak, with incoming orders for systems down. Product sales and service progressed positively. In the Benelux countries too, incoming orders fell after a positive first quarter and were below the level for the corresponding period last year.

The positive development that we saw in South Europe in Q1 has continued and incoming orders in the region were good. Development in Spain and Turkey were especially positive.

Incoming orders in the UK were at the same level as the corresponding period last year.

The efforts to strengthen efficiency in the European organization that were initiated in Q1, have continued to develop according to plan. As previously announced, these measures, when fully implemented by the end of 2015, will produce around SEK 40 million in annual savings. The efficiency measures will mean non-recurring costs of around SEK 35 million in 2014, of which SEK 20 million will affect earnings in the first half of the year.

		1 Apr - 30 June	1 Jan - 30 June		Organic	Full year	July -June
SEK m	2014	2013	2014	2013	growth,%	2013	12 months
Incoming orders	340.2	385.1	669.0	780.8	-16.8	1,449.4	1,337.6
Net Sales	354.7	348.0	682.0	689.5	-4.0	1,409.5	1,402.0
Depreciation	-5.8	-6.1	-11.6	-11.9		-24.3	-24.0
Operating Profit *)	23.5	30.8	39.2	40.3		73.3	72.2
Operating margin, %*	6.6	8.9	5.7	5.8		5.2	5.1

* excluding restructuring/integration costs and acquisition costs

Incoming orders for the quarter amounted to SEK 340.2m, which is a decrease of 14.9 per cent, adjusted for currency effects compared to the same quarter last year.

Incoming orders for the first six months, decreased 16.8 per cent adjusted for currency, compared to last year.

Net sales for the quarter amounted to SEK 354.7m, which is a decrease of 1.6 per cent adjusted for currency effects, compared to the same quarter last year.

Net sales for the first six months showed a decrease of 4.0 per cent adjusted for currency, compared to last year.

Asia Pacific

Developments in the Asia Pacific operating segment rebounded and all markets performed well during the quarter with both increased incoming orders and sales.

Orders in China during the period continued to perform strongly, with good performance in both product and system sales. In the second quarter, incoming orders worth SEK 22 million were booked relating to the agreement, announced in the first quarter, with Zhongwang Aluminium Group. Our position in relation to domestic Chinese companies continue to develop well.

In Australia, incoming orders increased slightly after a long period of declining demand and finished higher than the corresponding period last year. There is continuing uncertainty about the development of market demand.

Incoming orders in South East Asia have been good. This mainly explained by substantial orders for the forest industry in Vietnam, where a contract was signed with May Forestry JSC to supply air filtration systems to two new factories, a sawmill and a unit for the production of MDF boards. This order is worth SEK 22 million.

The Chinese market in general continued to make good progress and we are also seeing increased demand for system solutions throughout Asia.

	1 Apr - 30 June		1 Jan - 30 June		Organic	Full year	July -June
SEK m	2014	2013	2014	2013	growth,%	2013	12 months
Incoming orders	121.9	61.8	189.6	136.5	42.6	300.9	354.0
Net Sales	67.8	96.7	120.7	153.8	-18.5	291.8	258.7
Depreciation	-1.2	-1.4	-2.5	-2.8		-5.4	-5.1
Operating Profit *)	2.4	1.1	-6.2	-7.2		13.6	14.6
Operating margin, %*	3.5	1.1	-5.1	-4.7		4.7	5.6

* excluding restructuring/integration costs and acquisition costs

Incoming orders for the quarter amounted to SEK 121.9m, which is an increase of 103.4 per cent adjusted for currency effects, compared to the same quarter last year.

Incoming orders for the first six months increased by 42.6 per cent adjusted for currency, compared to last year.

Net sales for the quarter amounted to SEK 67.8m, which is a decrease of 27.5 per cent adjusted for currency effects, compared to the same quarter last year.

Net sales for the first six months, decreased by 18.5 per cent adjusted for currency effects, compared to last year.

Americas

Incoming orders as a whole in the Americas operating segment were very strong during the quarter. We have seen positive growth in product sales, while system sales were on par with last year.

In the US, demand continued to be strong and orders increased in comparison with the same quarter last year. During the quarter, we signed orders concerning two complete air filtration systems for gas turbines that will be installed at the air inlet at plants used for producing electricity. The order is worth SEK 22 million.

In Canada, the market continued to develop positively, with demand and orders strong during the second quarter.

The positive trend continued in Brazil with good orders and sales in the quarter as Nederman's goal-oriented efforts continue to produce good results.

		1 Apr - 30 June	1 Jan - 30 June		Organic	Full year	July -June
SEK m	2014	2013	2014	2013	growth,%	2013	12 months
Incoming orders	242.2	212.1	466.0	430.3	8.8	1,005.1	1,040.8
Net Sales	241.3	261.5	484.3	482.8	0.6	957.9	959.4
Depreciation	-2.3	-2.3	-4.5	-4.6		-9.0	-8.9
Operating Profit *)	26.3	36.1	55.2	62.2		138.9	131.9
Operating margin, %*	10.9	13.8	11.4	12.9		14.5	13.7

* excluding restructuring/integration costs and acquisition costs

Incoming orders for the quarter amounted to SEK 242.2m, which is an increase of 14.8 per cent adjusted for currency effects, compared to the same quarter last year.

Incoming orders for the first six months increased by 8.8 per cent adjusted for currency, compared to last year.

Net sales for the quarter amounted to SEK 241.3m, which is a decrease of 7.6 per cent adjusted for currency effects, compared to the same quarter last year.

Net sales for the first six months, increased by 0.6 per cent adjusted for currency effects, compared to last year.

Outlook

The assessment that has remained fixed for a number of quarters is still valid with the change that we are seeing some improvement in demand in the Asia Pacific region. Otherwise, it means that we are continuing to see positive and stable development in the AMERICAS region and demand in EMEA remains uncertain.

Quarter 2

Sales and incoming orders

Incoming orders were SEK 704.3m (659.0), which adjusted for currency effects and acquisitions is an increase of 5.8 per cent compared to the same quarter last year.

Net sales amounted to SEK 663.8m (706.2), which adjusted for currency effects and acquisitions is a decrease of 7.5 per cent compared to the same quarter last year.

Earnings

The operating profit for the second quarter was SEK 28.1m (44.5). Operating income in the quarter was affected by a gain of SEK 6.6m in connection with the sale of a property in Australia.

Operating profit was affected by SEK 20.0 m in restructuring costs, but no acquisition costs. The operating margin decreased compared to the same period last year, 4.2 % (6.3).

The profit before tax decreased to SEK 24.1m (39.4). The net profit was SEK 17.1m (31.1), giving earnings per share of SEK 1.46 (2.65).

Operating cash flow and capital expenditure

The operating cash flow was SEK 44.8m (36.3). Capital expenditure during the quarter was SEK 9.8m (8.0).

January - June

Sales and incoming orders

Incoming orders were SEK 1,324.6m (1,347.6), which adjusted for currency and acquisitions was a decrease of 2.6 per cent.

Net sales amounted to SEK 1,287.0m (1,326.1), which adjusted for currency effects and acquisitions is a decrease of 4.0 per cent.

Earnings

The operating profit for the period was SEK 36.7m (40.7). Operating income in the quarter was affected by a gain of SEK 6.6m in connection with the sale of a property in Australia. Adjusted for acquisition costs and restructuring costs the operating profit was SEK 56.7m (61.3). The operating profit was 2.9 per cent (3.1). The restructuring costs during the period amounted to SEK 20.0m (20.0).

Return on operating capital decreased to 9.3 per cent compared to 9.9 per cent last year.

The profit before tax decreased to SEK 26.3m (28.5). The net profit was SEK 18.6m (22.9), giving earnings per share of SEK 1.59 (1.95).

Operating cash flow and capital expenditure

The operating cash flow was SEK 43.3m (48.1). Capital expenditure during the period was SEK 14.7m (20.5), of which capitalised development costs amounted to SEK 0.8m (2.7).

Other financial information

Liquidity: At the end of the period the Group had SEK 207.5m in cash and cash equivalents as well as SEK 69.1m in available but unutilised overdraft facilities. In addition there was a credit facility of SEK 202.1m, which is a part of Nederman's loan agreement with SEB.

The equity in the Group as of 30 June 2014 amounted to SEK 613.5m (576.2). 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 was 11,681,340 at the end of the period.

The equity/assets ratio for the Group was 28.3 per cent as of 30 June 2014 (26.4). The net financial debt/equity ratio, calculated as net debt in relation to equity was 104.2 per cent (120.3).

Number of employees

The average number of employees during the quarter was 1,848 (1,932). The number of employees at the end of the period was 1,921 (1,963).

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 37 and in note 24 of the 2013 Annual Report. No circumstances have arisen to change the assessment of identified risks.

Nominations committee

In accordance with a decision in the Instructions for the Nominations committee, the chairman of the Board shall contact the three largest owners of the company in terms of votes based on ownership details in Euroclean Sweden's register as of the final banking day in August each year. Each of these three owners is entitled to appoint a representative to participate alongside the chairman of the Board in the Nominations committee until a new committee is appointed.

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 2013, pages 49-53 applies both to the Group and the parent company.

Changes being implemented from 1 January 2014

A number of new standards and amendments of interpretations and existing standards came into effect on 1 January 2014 and have been implemented in the preparation of the Group's financial reports. None of them are expected to have a significant impact on the Group's financial reporting.

Voluntary change of accounting principles

The Group has harmonized how it handles freight income. Reclassification was done as it gives a fairer view of the Group's income statement. Comparable figures attributable to this reclassification have been adjusted. This has meant that orders, net sales and cost of goods sold have increased, as shown below:

2013 Q1: SEK 5.4m 2013 Q2: SEK 6.0m

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.

Helsingborg, 14 July 2014

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 Apr–30 June 1 Jan–30 June			Full year	July-June
SEK m	2014	2013	2014	2013	2013	12months
Net sales	663.8	706.2	1,287.0	1,326.1	2,659.2	2,620.1
Cost of goods sold	-426.3	-447.5	-826.2	-849.4	-1,692.6	-1,669.4
Gross profit	237.5	258.7	460.8	476.7	966.6	950.7
Selling expenses	-158.2	-154.1	-304.3	-310.2	-600.1	-594.2
Administrative expenses	-45.4	-46.2	-95.1	-88.8	-171.9	-178.2
Research and development expenses	-0.2	-6.2	-5.1	-11.5	-21.6	-15.2
Acquisition expenses		-0.1		-0.6	-1.7	-1.1
Restructuring/ integration expenses	-10.0		-20.0	-20.0	-41.0	-41.0
Other operating income/expenses	4.4	-7.6	0.4	-4.9	-2.8	2.5
Operating profit	28.1	44.5	36.7	40.7	127.5	123.5
Financial income	1.7	0.5	2.2	1.0	2.0	3.2
Financial expenses	-5.7	-5.6	-12.6	-13.2	-29.8	-29.2
Net financial income/expenses	-4.0	-5.1	-10.4	-12.2	-27.8	-26.0
Profit/loss before taxes	24.1	39.4	26.3	28.5	99.7	97.5
Taxes	-7.0	-8.3	-7.7	-5.6	-30.0	-32.1
Net profit/loss	17.1	31.1	18.6	22.9	69.7	65.4
Net profit/loss attributable to:
The parent company's shareholders	17.1	31.1	18.6	22.9	69.7	65.4
Earnings per share
before dilution (SEK)	1.46	2.65	1.59	1.95	5.95	5.60
after dilution (SEK)	1.46	2.65	1.58	1.95	5.93	5.57

Consolidated statement of comprehensive income

SEK m	2014	1 Apr-30 June 2013	2014	1 Jan-30 June 2013	Full year 2013	July-June 12months
Net profit/loss	17.1	31.1	18.6	22.9	69.7	65.4
Other comprehensive income
Items that will not be reclassified to the income statement
Revaluation of defined-benefit pension plans Income taxes					1.6 -0.5	1.6 -0.5
					1.1	1.1
Items that may be reclassified to the income statement
Exchange differences arising on translation of foreign operations	25.5	18.1	27.7	-1.2	-6.4	22.5
	25.5	18.1	27.7	-1.2	-6.4	22.5
Other comprehensive income for the period, net after tax	25.5	18.1	27.7	-1.2	-5.3	23.6
Total comprehensive income for the period	42.6	49.2	46.3	21.7	64.4	89.0
Total comprehensive income attributable to:
The parent company's shareholders	42.6	49.2	46.3	21.7	64.4	89.0

Consolidated statement of financial position

	30 June	30 June	31 Dec
NOTE SEK m	2014	2013	2013
Assets
Goodwill	620.9	609.2	605.4
Other intangible fixed assets	80.2	91.8	84.0
Tangible fixed assets	222.2	222.9	224.1
Long-term receivables	6.2	5.6	5.8
Deferred tax assets	92.6	81.3	79.1
Total fixed assets	1,022.1	1,010.8	998.4
Inventories	310.4	339.1	291.4
Accounts receivable	459.9	435.4	472.0
1 Other receivables	169.5	214.2	146.3
Cash and cash equivalents	207.5	182.7	270.0
Total current assets	1,147.3	1,171.4	1,179.7
Total assets	2,169.4	2,182.2	2,178.1
Equity	613.5	576.2	619.8
Liabilities
Long-term interest bearing liabilities	709.9	730.5	711.0
Other long-term liabilities	13.3	14.8	13.4
Provision for pensions	97.5	105.8	97.2
Deferred tax liabilities	24.8	29.3	26.9
Total long-term liabilities	845.5	880.4	848.5
Current interest bearing liabilities	39.3	39.4	32.7
Accounts payable	282.0	288.7	255.5
1 Other liabilities	389.1	397.5	421.6
Total current liabilities	710.4	725.6	709.8
Total liabilities	1,555.9	1,606.0	1,558.3
Total equity and liabilities	2,169.4	2,182.2	2,178.1

Consolidated statement of changes in equity in summary

SEK m	30 June 2014	30 June 2013	31 Dec 2013
Opening balance on 1 January	619.8	601.2	601.2
Net profit	18.6	22.9	69.7
Other comprehensive income
Change in translation reserve	27.7	-1.2	-6.4
Revaluation of defined-benefit pension plans, net of tax			1.1
Total other comprehensive income for the period	27.7	-1.2	-5.3
Total comprehensive income for the period	46.3	21.7	64.4
Transactions with owners
Dividend paid	-46.7	-46.9	-46.9
Share-based payments	0.8	0.2	1.1
Repurchase of own shares	-6.7
Closing balance at the end of period	613.5	576.2	619.8

Consolidated cash flow statement

		1 Jan–30 June		Full year	July-June
SEK m	NOTE	2014	2013	2013	12months
				months
Operating profit		36.7	40.7	127.5	123.5
Adjustment for:
Depreciation of fixed assets		23.0	24.5	49.2	47.7
Other adjustments		-6.3	4.1	-16.8	-27.2
Interest received and paid incl. other financial items		-12.6	-11.5	-33.6	-34.7
Taxes paid		-27.0	-43.9	-67.0	-50.1
Cash flow from operating activities before		13.8	13.9	59.3	59.2
changes in working capital
Cash flow from changes in working capital		-21.5	-27.5	50.1	56.1
Cash flow from operating activities		-7.7	-13.6	109.4	115.3
Net investment in fixed assets		-1.8	-12.6	-28.6	-17.8
Acquired/divested units	2		-9.3	-8.5	0.8
Cash flow before financing activities		-9.5	-35.5	72.3	98.3
Dividend paid		-46.7	-46.9	-46.9	-46.7
Cash flow from other financing activities		-14.6	36.7	15.9	-35.4
Cash flow for the period		-70.8	-45.7	41.3	16.2
Cash and cash equivalents at the beginning of the period		270.0	224.6	224.6	270.0
Translation differences		8.3	3.8	4.1	8.6
Cash and cash equivalents at the end of the period		207.5	182.7	270.0	294.8
Operating cash flow
Operating profit		36.7	40.7	127.5	123.5
Adjustment for:
Depreciation of fixed assets		23.0	24.5	49.2	47.7
Restructuring and integration costs		13.2	13.9	39.3	38.6
Acquisition costs			5.0	6.0	1.0
Other adjustments		-6.3	4.1	-16.8	-27.2
Cash flow from changes in working capital		-21.5	-27.5	50.1	56.1
Net investment in fixed assets		-1.8	-12.6	-28.6	-17.8
Operating cash flow		43.3	48.1	226.7	221.9

Income statement for the parent company in summary

	1 Apr-30 June		1 Jan-30 June		Full year	July-June
SEK m	2014	2013	2014	2013	2013	12 months
Operating loss	-7.1	-21.0	-16.3	-34.8	-69.9	-51.4
Result from investment in subsidiaries	0.6	29.9	9.0	35.2	157.8	131.6
Other financial items	0.7	3.7	-3.2	-1.8	-5.6	-7.0
Result after financial items	-5.8	12.6	-10.5	-1.4	82.3	73.2
Appropriations					50.0	50.0
Result before taxes	-5.8	12.6	-10.5	-1.4	132.3	123.2
Taxes		0.0		0.0		0.0
Net Result	-5.8	12.6	-10.5	-1.4	132.3	123.2

Statement of comprehensive income for the parent company

	1 Apr-30 June			1 Jan-30 June	Full year	July-June
SEK m	2014	2013	2014	2013	2013	12 months
Net Result	-5.8	12.6	-10.5	-1.4	132.3	123.2
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	-5.8	12.6	-10.5	-1.4	132.3	123.2

Balance sheet for the parent company in summary

	31 June	31 June	31 Dec
SEK m	2014	2013	2013
Assets
Total fixed assets	1,343.9	1,382.2	1,298.0
Total current assets	129.6	101.4	295.1
Total assets	1,473.5	1,483.6	1,593.1
Shareholder's equity	507.9	436.4	571.0
Liabilities
Total long-term liabilities	707.9	728.2	709.4
Total current liabilities	257.7	319.0	312.7
Total liabilities	965.6	1,047.2	1,022.1
Total shareholders' equity and liabilities	1,473.5	1,483.6	1,593.1

Statements of changes in shareholders' equity in summary

SEK m	31 June 2014	31 June 2013	31 Dec 2013
	571.0	484.5	484.5
Opening balance on 1 January Net profit/loss	-10.5	-1.4	132.3
Other comprehensive income
Total other comprehensive income for the period
Total comprehensive income for the period	-10.5	-1.4	132.3
Transactions with owners
Dividend paid	-46.7	-46.9	-46.9
Share-based payments	0.8	0.2	1.1
Repurchase of own shares	-6.7
Closing balance at the end of period	507.9	436.4	571.0

Related parties

SEK m	2014
Subsidiaries
Other operating income	27.4
Dividend	9.0
Financial income and expenses	5.2
Receivables on 31 June	538.6
Liabilities on 31 June	199.0

Pledged assets and contingent liabilities for the parent company

SEK m	30 June 2014	30 June 2013	31 Dec 2013
Pledged assets	none	none	none
Contingent liabilities	137.4	127.7	135.7

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

			June 30, 2014
		Financial assets and liabilities not recorded at
SEK m	Fair value	fair value	Total book value
Other receivables
Foreign exchange forward contracts entered *)	0.5		0.5
Other receivables	-	169.0	169.0
Total other receivables	0.5	169.0	169.5
Other liabilities
Foreign exchange forward contracts entered *)	3.7		3.7
Other liabilities	-	385.4	385.4
Total other liabilities	3.7	385.4	389.1

*) The Group holds financial instruments in the form of currency exchange contracts that are recorded at fair value in the balance sheet. 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 to the 2013 Annual Report.

NOTE 2 Acquisition

2013 the Group acquired the Danish company, Industriventilation A/S at the purchase price of DKK 12.9 million. This acquisition is not considered to be significant for the Group's financial reporting and statements in accordance with IFRS 3 have not therefore been presented.

The acquisition statement for the 2012 acquisition of EFT has been adjusted by SEK 5.2 million mainly due to the adjustment of the purchase price following a final calculation of net working capital. This adjustment meant a corresponding reduction in goodwill. The acquisition statement for EFT is now concluded.

Operating segment reporting

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

	1 Jan - 30 June		Full year	July - June
SEK m	2014	2013	2013	12 months
EMEA
Incoming orders	669,0	780,8	1 449,4	1 337,6
Net sales	682,0	689,5	1 409,5	1 402,0
Depreciation	-11,6	-11,9	-24,3	-24,0
Operating profit *	39,2	40,3	73,3	72,2
Operating margin, %*	5,7	5,8	5,2	5,1
Asia Pacific
Incoming orders	189,6	136,5	300,9	354,0
Net sales	120,7	153,8	291,8	258,7
Depreciation	-2,5	-2,8	-5,4	-5,1
Operating profit *	-6,2	-7,2	13,6	14,6
Operating margin, %*	-5,1	-4,7	4,7	5,6
Americas
Incoming orders	466,0	430,3	1 005,1	1 040,8
Net sales	484,3	482,8	957,9	959,4
Depreciation	-4,5	-4,6	-9,0	-8,9
Operating profit *	55,2	62,2	138,9	131,9
Operating margin, %*	11,4	12,9	14,5	13,7
Not allocated
Depreciation	-4,4	-5,2	-10,5	-9,7
Operating profit /loss*	-31,5	-34,0	-55,6	-53,1
Group
Incoming orders	1 324,6	1 347,6	2 755,4	2 732,4
Net sales	1 287,0	1 326,1	2 659,2	2 620,1
Depreciation	-23,0	-24,5	-49,2	-47,7
Operating profit *	56,7	61,3	170,2	165,6
Acquisition costs		-0,6	-1,7	-1,1
Restructuring and integration costs	-20,0	-20,0	-41,0	-41,0
Operating profit	36,7	40,7	127,5	123,5
Result before tax	26,3	28,5	99,7	97,5
Net result	18,6	22,9	69,7	65,4

* excluding restructuring/integration costs and acquisition costs

Dates for the publication of financial information

Interim report Q3 16 October 2014 2013 Financial Statement February 2015

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 14 July 2014 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.com e-mail: stefan.fristedt@nederman.com

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 2.7 billion.