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Nederman Holding

Interim / Quarterly Report Oct 22, 2010

3083_10-q_2010-10-22_81e70dd4-369d-48d7-923c-a6eda4dda29f.pdf

Interim / Quarterly Report

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Interim report, January – September 2010

Continued positive development of incoming orders and profitability

Quarter 3

  • Incoming orders amounted to SEK 470.9m (203.2), which adjusted is an increase by 17.4% *)
  • Net sales amounted to SEK 508.1m (239.8), which adjusted is an increase by 1.2%. *)
  • Operating profit was SEK 12.9m (8.6). The operating margin was 2.5% (3.6).
  • Operating profit excluding acquisition and restructuring costs was SEK 32.5m (11.3). The adjusted operating margin was 6.4% (4.7).
  • Net profit was SEK 2.2m (4.6).
  • Earnings per share were SEK 0.19 (0.40).
  • During the period it was decided to move the production at the plant at Arboga, Sweden to the plant at Marki, Poland. This will strengthen the competiveness and is part of the integration between Nederman and Dantherm Filtration.

January - September

  • Incoming orders amounted to SEK 1,170.5m (749.5), which adjusted is an increase by 4.1% *)
  • Net sales amounted to SEK 1,172.3m (792.7), which adjusted is a decline by 4.2%. *)
  • Operating profit was SEK 33.7m (11.6). The operating margin was 2.9% (1.5).
  • Operating profit excluding acquisition and restructuring costs was SEK 67.6m (21.6). The adjusted operating margin was 5.8% (2.7).
  • Net profit was SEK 10.8m (3.0)
  • Earnings per share were SEK 0.92 (0.26).

*) Adjusted for currency effects and acquisitions.

CEO'S comments

"Just as we did in the previous quarter, we are reporting good organic growth in orders in Q3. The profitability and net debt have improved further during the quarter and we began to implement concrete measures as part of the integration of Dantherm Filtration. The decision to move activities from Arboga to our plant in Poland will boost the Group's competitiveness."

Sven Kristensson, CEO.

Key figures, Group

Operating key figures, Group

Excluding restructuring/integration cost and acquisition cost

1 July - 30 Sep 1 Jan -30 Sep Full year Oct-Sep
SEKm 2010 2009 2010 2009 2009 12 months
Net sales 508.1 239.8 1,172.3 792.7 1,052.0 1,431.6
EBITDA 44.7 15.6 93.9 34.7 51.4 110.6
EBITDA margin, % 8.8 6.5 8.0 4.4 4.9 7.7
Operating result 32.5 11.3 67.6 21.6 33.3 79.3
Operating margin, % 6.4 4.7 5.8 2.7 3.2 5.5
Operating cash flow 59.2 32.1 86.3 55.0 121.7 153.0
Return on operating capital, % 13.4 6.6 11.6 4.3 5.1 9.9
EBITDA/net financial items, multiple 8.4 5.6
Net debt/EBITDA*) 2.1 3.5

Financial key figures, Group

1 July - 30 Sep 1 Jan -30 Sep Full year Oct-Sep
SEKm 2010 2009 2010 2009 2009 12 months
Operating result 12.9 8.6 33.7 11.6 23.3 45.4
Operating margin, % 2.5 3.6 2.9 1.5 2.2 3.2
Result before tax 1.9 7.0 14.8 6.5 17.2 25.5
Result after tax 2.2 4.6 10.8 3.0 14.6 22.4
Earnings per share, SEK 0.19 0.40 0.92 0.26 1.25 1.91
Return on shareholders' equity, % 1.7 3.7 2.9 0.8 2.8 4.5
Net debt 439.8 163.7 108.0 439.8
Net debt/equity ratio, % 88.9 32.9 21.0 88.9

*) Oct-Sept includes Dantherm Filtration pro forma October 2009-September 2010

Development per business area

Europe

Scandinavia

The market in Norway is recovering slowly after reaching historic lows. Nederman is noting increased demand for customised solutions for the Offshore and Shipping industries. In Sweden there is positive development for solutions that create a cleaner and safer working environment in welding-related industries and auto workshops. A significant factor here is growth among generic car service companies competing with brand workshops.

In Denmark there are signs of recovery for wind power, a key industry. The rest of the market remains weak.

UK

The UK (England and Ireland) market remains weak. However, Nederman´s strong market position has won a number of orders, including orders from the aircraft sector.

Other European countries

In Eastern Europe we are mainly seeing signs of recovery in Poland within the metal working industry and at auto workshops.

In Germany there is gradual recovery in welding-related industries. We are receiving more general inquiries about investments aimed at improving the working environment.

General trends in Southern Europe remain weak. Despite the weak market, however, Nederman has received several orders from the aircraft industry in Spain.

1 Jan- 30 Sep Full year Oct-Sep
SEK m 2010 2009 2009 12 months
Europe
Net sales, external 516.0 596.1 775.0 694.9
Net sales, total 516.0 596.1 775.0 694.9
Depreciations -4.2 -4.2 -5.7 -5.7
Operating profit 49.0 52.2 70.0 66.8

Incoming orders over the quarter amounted to SEK 152.5m, which is an increase by 8.9 per cent compared to the same quarter last year. Incoming orders fell by 6.6 per cent over January – September compared with the same period 2009.

Net sales over the quarter amounted to SEK 162.3m, which is a drop of 15.7 per cent compared to the same quarter last year. Net sales fell by 13.4 per cent compared to the same period 2009.

International

In China, Nederman is continuing to develop according to plan and the formation of a qualified and focused retailer network has the highest priority. We hope to attract a further 30 new distributors during the year, mainly in the manufacturing industry, within welding and composites processing for example, but also in the automotive industry. Most major European automotive manufacturers are planning extensive expansion of their service workshops in China in the next few years. Nederman has signed agreements with a number of these automotive manufacturers for customised equipment for the new workshops.

Nederman continues to develop positively in Brazil as the Brazilian economy delivers good growth. Welding-related industries remain the strongest application areas and we are also noting positive trends in composites processing.

North America

Investment in traditional manufacturing remains at a low level in the US.

The rules have been changed concerning federal aid for investment in emergency rescue vehicles, which has had a strong negative effect on demand for equipment for exhaust gas extraction.

The establishment of a specialised retail network in the US that we started at the end of 2009 is proceeding according to plan.

We are seeing recovery signs in some of the more industrial regions of Canada compared to 2009.

1 Jan – 30 Sep Oct-Sep
SEK m 2010 2009 2009 12-months
International
Net sales, external 209.9 192.3 271.3 288.9
Net sales, total 209.9 192.3 271.3 288.9
Depreciations -1.9 -1.5 -2.0 -2.4
Operating profit 12.5 2.8 5.0 14.7

Incoming orders over the quarter amounted to SEK 74.1m, which is an increase by 25.2 per cent compared to the same quarter last year. Over the period incoming orders for the business area rose by 17.6 per cent compared to the same period 2009.

Net sales over the quarter amounted to SEK 71.1m, which is an increase by 54.9 per cent compared to the same quarter last year. Invoicing for January – September increased by 9.2 per cent compared to the same period 2009.

Dantherm Filtration

Dantherm Filtration is reported as a separate business segment from 30 April 2010.

Scandinavia

Both product and system sales are showing signs of stabilisation. In Denmark the wind power industry is recovering. Also in Denmark we have received several orders for filter plants from crematoriums. In Sweden the recovery can mostly be seen in the wood and paper industry.

Service and aftermarket are progressing positively in Denmark, Sweden and Finland.

Other European countries

In Poland an order was received worth around SEK 15 m, as previously announced, for an air treatment system at a foundry. Also the wood and wood-processing industry shows signs of stability.

Investment remains at a low level in Germany, despite steadily increasing economic activity. During the period, as announced, an order worth around SEK 15m was received in cooperation with Siemens AG. The customer is one of Europe's leading paper and board producers. This project concerns recycling of waste materials and recovery of energy in hot gases.

In the UK we have won a series of orders for filter plants for crematoriums, and we have noted continued success concerning investments in larger systems within wood processing.

Overall the European market is showing signs of caution concerning investment decisions.

South East Asia

Dantherm Filtration is active in Thailand, Vietnam, Malaysia and Indonesia and in China. Interest in solutions that contribute to a better environment is growing, and Western companies have made announcements concerning large investments.

The markets in Thailand, Vietnam and Malaysia are progressing positively, with several new orders gained over the period. The Indonesian market has developed swiftly, with strong growth in the auto sector, several ongoing infrastructure projects and a trend of Chinese wood-processing firms opening up operations in the country.

Nederman expects to see positive effects concerning demand as the Chinese authorities take action against businesses that do not meet modern environmental requirements. Recently, over 2,500 companies were closed down due to their failures in the environmental area. The rate of investment in larger filter systems by domestic Chinese companies remains relatively low. The domestic companies are often dependent on state finance and there is major competition from local manufacturers.

North America

We have received inquiries for systems in which low-vacuum solutions from Dantherm Filtration are matched with high-vacuum solutions from Nederman – which is a good example of how the integration of Nederman and Dantherm Filtration is leading to boosted competitiveness with solutions and products complementing each other. In general, demand remains weak in the US.

1 Jan -30 Sep * Oct-Sep
SEK m 2010 2009 2009 12 months
Dantherm Filtration
External sales 441.4 441.4
Total net sales 441.4 442.4
Depreciations -13.2 -13.2
Operating profit 23.5 23.5

*) Dantherm Filtration is consolidated as from 30th of April 2010

Pro forma

1 Jan -30 Sep Full year
SEK m 2010 2009 2009
Total net sales 747.9 835.3 980.0
Operating profit 24.5 -8.3 -11.8

Integration of acquisition

Nederman announced on 30 September 2010 that it was closing its production plant at Arboga, Sweden, and moving activities to the Group's production plant in Marki, Poland. The aim is to strengthen the Group's competitiveness and the switch is part of the ongoing integration between Nederman and Dantherm Filtration. The closure will affect 16 employees. At the time of publication of this interim report, negotiations with trade union were concluded and, as a result, an estimated SEK 12.6m in one-off costs will be recognized in October. These one-off costs are part of the maximum of SEK 100m announced in the previous interim report.

Up to the end of September, integration analyses have been concluded in India, Brazil, Ukraine, Russia, Poland, the UK, North America, Finland and Sweden, and the reports have been submitted to the senior corporate executive team. These analyses are being used in the implementation of integration, which is proceeding according to plan.

Earnings up to September have been affected by SEK 23.3m in one-off costs relating to the acquisition of Dantherm Filtration. These costs relate mainly to the integration activities that have started in Sweden, Denmark and Germany. Most of this sum of SEK 23.3m will affect cash flow. Up to September the effect on cash flow has been SEK -6.9m.

Outlook

As reported in previous quarterly reports, demand trends are showing signs of stabilisation, and there is gradual recovery in some markets and segments. Development remains sluggish however. Customers continue to make decisions slowly and they remain cautious about investments.

Quarter 3

Sales and incoming orders

Incoming orders for the quarter amounted to SEK 470.9m (203.2), which is an increase of 131.7 per cent compared to the same quarter last year. Adjusted for currency effects and acquisitions the increase was 17.4 per cent.

Net sales for the quarter amounted to SEK 508.1m (239.8), which is an increase of 111.9 per cent compared to the same quarter last year. Adjusted for currency effects and acquisitions the increase was 1.2 per cent.

Earnings

The Group's operating profit for the quarter was SEK 12.9m (8.6). Excluding acquisition and restructuring costs the operating profit was SEK 32.5m (11.3), giving an operating margin of 6.4 per cent (4.7).

The profit before tax was SEK 1.9 m (7.0).

The net profit was SEK 2.2m (4.6), giving an earnings per share of SEK 0.19 (0.40).

Operating cash flow and capital expenditure

The operating cash flow amounted to SEK 59.2m (32.1). Capital expenditure during the quarter amounted to SEK 5.4m (11.2).

January – September

Sales and incoming orders

Incoming orders amounted to SEK 1,170.5m (749.5), which is an increase of 56.2 per cent compared to the same period last year. Adjusted for currency effects and acquisitions it was an increase of 4.1 per cent.

Net sales amounted to SEK 1,172.3m (792.7), which is an increase of 47.9 per cent compared to the same period 2009. Adjusted for currency effects and acquisitions it was a drop of 4.2 per cent.

Earnings

.

The Group's operating profit for the period was SEK 33.7m (11.6). Excluding acquisition and restructuring costs the operating profit was SEK 67.6m (21.6), giving an operating margin of 5.8 per cent (2.7).

The profit before tax was SEK 14.8m (6.5).

The net profit was SEK 10.8m (3.0), giving an earnings per share of SEK 0.92 (0.26)

Operating cash flow and capital expenditure

The operating cash flow January – September amounted to SEK 86.3m (55.0). Capital expenditure during the period amounted to SEK 10.5m (16.3).

Quarterly Invoicing SEKm

Other financial information

Liquidity: At the end of the period the Group had SEK 176.1m in cash and cash equivalents as well as SEK 78.3m in available but unutilized overdraft facilities.

The equity in the Group as of 30 September, 2010 amounted to SEK 494.9m (497.6). Total number of shares was 11,715,340 at the end of the period.

The equity/assets ratio for the Group was 31.2 per cent as of 30 September, 2010 (51.4). The net financial debt/equity ratio, calculated as net debt in relation to equity was 88.9 per cent (32.9).

Number of employees

The average number of employees during the period was 1,086 (665). The number of employees at the end of the period was 1,448 (649).

500 600

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 Directors´report on page 21, and in note 26 of 2009's 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 Jan Svensson (chairman), Fabian Hielte and Peter Rönström ahead of the AGM in 2010. For questions concerning the work of the nominations committee please contact [email protected].

Accounting policies

The consolidated financial statements are prepared in accordance with IAS 34. The report for the parent company has been prepared in accordance with Swedish Annual Accounts Act and RFR 2.3. The consolidated financial statements have been prepared in accordance with the International Financial Reporting Standards (IFRS), as approved by the EU commission. Nederman applies the same accounting policies and valuation principles as described in the annual report 2009, pages 30-35.

The following amendments valid from 1 January 2010 are considered to be valid for Nederman's accounting principles and presentation of this financial report:

IFRS 3, Business Combinations (revised): Transaction costs shall be expensed when they occur and not as previously included in the acquisition value. Stepwise acquisitions and divestments may impact the result.

IFRS 3, Business combinations (amendment). Transaction-related expenses shall be reported in profit/loss as they arise and not, as previously, be included in the acquisition value. Acquisitions and sales performed in phases can have assessment effects on earnings.

IFRS 8, Operating segment

As from Jan 2010 Nederman reports according to the operating segments Europe and International. Dantherm Filtration is reported as a separate operating segment from 30 April 2010.

In accordance with RFR 2.3, the parent company shall make a separate report for comprehensive income together with its income statement, i.e. a separate income statement and a separate report of comprehensive income. The parent company shall also present a report of changes in shareholders' equity.

Consolidated Income Statement

1 July - 30 Sep 1 Jan – 30 Sep Full year Oct-Sep
SEK m 2010 2009 2010 2009 2009 12 months
Net sales 508.1 239.8 1,172.3 792.7 1,052.0 1,431.6
Costs of goods sold -316.3 -128.6 -682.3 -414.6 -545.6 -813.3
Gross result 191.8 111.2 490.0 378.1 506.4 618.3
Selling expenses -110.6 -85.1 -317.6 -281.9 -369.4 -405.1
Administration expenses -43.8 -17.2 -92.8 -65.4 -86.5 -113.9
Research and development expenses -6.2 -3.2 -16.1 -12.2 -16.7 -20.6
Acquisition costs -0.5 -10.6 -10.6
Restructuring and integration costs -19.1 -2.7 -23.3 -10.0 -10.0 -23.3
Other operating income/expenses 1.3 5.6 4.1 3,0 -0.5 0.6
Operating result 12.9 8.6 33.7 11.6 23.3 45.4
Financial income 1.9 0.2 4.4 1.2 2.3 5.5
Financial expenses -12.9 -1.8 -23.3 -6.3 -8.4 -25.4
Net financial income/expenses -11,0 -1.6 -18.9 -5.1 -6.1 -19.9
Result before taxes 1.9 7.0 14.8 6.5 17.2 25.5
Taxes 0.3 -2.4 -4.0 -3.5 -2.6 -3.1
Net result 2.2 4.6 10.8 3.0 14.6 22.4
Net result attributable to
The parent company's shareholders 2.2 4.6 10.8 3.0 14.6 22.4
Earnings per share
before dilution (SEK) 0.19 0.40 0.92 0.26 1.25 1.92
after dilution (SEK) 0.19 0.40 0.92 0.26 1.25 1.92

*) For comparison historical data have been adjusted

concerning restructuring costs according to below:

1 July - 30 Sep 1Jan - 30 Sep Full year Oct-Sep
SEK m 2010 2009 2010 2009 2009 12 months
Costs of goods sold 1.0 2.6 2.6
Selling expenses 1.7 6.9 6.9
Other operating income/expenses 0.0 0.5 0.5
Restructuring and integration costs -2.7 -10.0 -10.0

Consolidated statement of comprehensive income

1 July - 30 Sep 1 Jan - 30 Sep Full year Oct-Sep
SEK m 2010 2009 2010 2009 2009 12 months
Net result 2.2 4.6 10.8 3.0 14.6 22.4
Other comprehensive income
Translation differences -31.1 -11.1 -30.6 -5.2 0.3 -25.1
Other comprehensive income -31.1 -11.1 -30.6 -5.2 0.3 -25.1
Total comprehensive income -28.9 -6.5 -19.8 -2.2 14.9 -2.7
Total comprehensive income
attributable to:
The parent company's shareholders -28.9 -6.5 -19.8 -2.2 14.9 -2.7

Consolidated statement of financial position

SEK m 30 Sep
2010
30 Sep
2009
31 Dec
2009
Assets
Goodwill 465.1 401.4 400.0
Other intangible fixed assets 57.0 28.6 28.8
Tangible fixed assets 199.9 39.4 40.2
Long-term receivables 0.9 0.2 0.8
Deferred tax assets 57.1 35.7 23.4
Total fixed assets 780.0 505.3 493.2
Inventories 208.3 135.0 126.0
Accounts receivables 318.7 175.5 178.3
Other current receivables 110.3 61.0 45.1
Cash and cash equivalents 176.1 91.2 90.9
Total current assets 813.4 462.7 440.3
Total assets 1,593.4 968.0 933.5
Equity 494.9 497.6 514.7
Liabilities
Long-term interest-bearing liabilities 560.9 206.8 151.3
Other long-term liabilities 4.8 0.3 0.4
Provision for pensions 41.8 32.3 34.0
Deferred tax liabilities 19.2 17.9 6.2
Total long-term liabilities 626.7 257.3 191.9
Current interest-bearing liabilities 13.2 15.8 13.6
Accounts payable 135.9 68.3 91.6
Other current liabilities 322.7 129.0 121.7
Total current liabilities 471.8 213.1 226.9
Total liabilities 1,098.5 470.4 418.8
Total equity and liabilities 1,593.4 968.0 933.5

Consolidated statement of changes in equity

30 Sep 30 Sep 31 Dec
SEK m 2010 2009 2009
Opening balance on 1 January 514.7 529.1 529.1
Dividend -29.3 -29.3
Total comprehensive income -19.8 -2.2 14.9
Closing balance at the end of period 494.9 497.6 514.7

Consolidated cash flow statement

1 Jan - 30 Sep Full year Oct-Sep
SEK m 2010 2009 2009 12 months
Operating profit 33.7 11.6 23.3 45.4
Adjustment for:
Depreciations of fixed assets 26.3 13.1 18.1 31.3
Other adjustments -5.4 -18.5 -6.4 6.7
Interest received and paid incl. other financial items -16.8 -4.7 -4.7 -16.8
Taxes paid -20.0 -31.2 -34.9 -23.7
Cash flow from operating activities before
changes in working capital 17.8 -29.7 -4.6 42.9
Cash flow from changes in working capital 24.3 57.8 98.3 64.8
Cash flow from operating activities 42.1 28.1 93.7 107.7
Net investment in fixed assets -10.1 -16.0 -20.5 -14.6
Acquired units*) -138.2 -1.9 -2.1 -138.4
Cash flow before financing activities -106.2 10.2 71.1 -45.3
Dividend -29.3 -29.3
Cash flow from other financing activities 199.5 19.5 -40.0 140.0
Cash flow for the period 93.3 0.4 1.8 94.7
Cash and cash equivalent at the beginning of the 90.9 90.8 90.8 91.2
Exchange rate differences -8.1 0.0 -1.7 -9.8
Cash and cash equivalent at the end of the period 176.1 91.2 90.9 176.1
Operating cash flow
Operating profit 33.7 11.6 23.3 45.4
Adjustment for:
Depreciations of fixed assets 26.3 13.1 18.1 31.3
Restructuring and integration costs 6.9 7.0 8.9 8.8
Acquisition costs 10.6 10.6
Other adjustments -5.4 -18.5 -6.4 6.7
Cash flow from changes in working capital 24.3 57.8 98.3 64.8
Net investment in fixed assets -10.1 -16.0 -20.5 -14.6
Operating cash flow 86.3 55.0 121.7 153.0

Specification of acquisitions

Acquisition price 137.2
Fair value of acquired net assets -62.3
Goodwill 74.9
Acquired assets and liabilities
Intangible fixed assets 33.9
Tangible fixed assets 181.5
Financial fixed assets 0.1
Inventories 113.5
Customer receivable and other receivables 221.9
Current tax receivables 2.4
Deferred tax assets 8.2
Liquid funds 59.1
Interest bearing liabilities -226.8
Accounts payable and other operating liabilities -262.7
Current tax liabilities -4.8
Deferred tax liabilities -4.9
Net assets 121.4
Of which liquid funds in acquired units -59.1
Fair value of acquired net assets 62.3
Net result during ownership period 4.5
Net sales January-September for acquired units 747.9
Net result January-September for acquired units -4.6
*) Acquisitions January-September 137.2
Payment for previous years acquisition 1.0
138.2

Income statement for the parent company

1 July - 30 Sep 1 Jan – 30 Sep Full year Oct-Sep
SEK m 2010 2009 2010 12 2009 12months
Operating result -8.6 -4.3 -21.9 -18.0 -23.8 -27.7
Write down book value shares in subsidiaries -54.7 -54.7
Other financial items -8.7 -0.9 -14.6 2.3 37.8 20.9
Result after financial items -17.3 -5.2 -36.5 -15.7 -40.7 -61.5
Changes in untaxed reserves 18.5 18.5
Result before tax -17.3 -5.2 -36.5 -15.7 -22.2 -43.0
Tax 4.5 1.4 9.5 5.5 5.2 9.2
Net result -12.8 -3.8 -27.0 -10.2 -17.0 -33.8

Statement of comprehensive income for the parent company

1 July - 30 Sep 1 Jan – 30 Sep Full year Oct-Sep
SEK m 2010 2009 2010 2009 2009 12 months
Result for the period -12.8 -3.8 -27.0 -10.2 -17.0 -33.8
Other comprehensive income 0.0 0.0 0.0 0.0 0.0 0.0
Total comprehensive income -12.8 -3.8 -27.0 -10.2 -17.0 -33.8
Balance sheet for the parent company
30 Sep 30 Sep 31 Dec
SEK m 2010 2009 2009
Assets
Total fixed assets 893.6 558.2 495.9
Total current assets 65.4 73.2 72.7
Total assets 959.0 631.4 568.6
Total shareholders' equity 344.1 370.9 371.1
Untaxed reserves 18.5
Liabilities
Total long-term liabilities 557.7 205.0 150.0
Total current liabilities 57.2 37.0 47.5
Total liabilities 614.9 242.0 197.5
Total shareholders' equity and liabilities 959.0 631.4 568.6

Statements of changes in Shareholders Equity

30 Sep 30 Sep 31 Dec
SEK m 2010 2009 2009
Opening balance on 1 jan 371.1 410.4 410.4
Dividend -29.3 -29.3
Total comprehensive income -27.0 -10.2 -10.0
Closing balance at the end of the period 344.1 370.9 371.1

Related parties

SEK m
Subsidiaries 2 010
Other operating income 7.2
Dividend received
Financial income and expenses 0.1
Receivable related parties 30 September 235.5
Liabilities related parties 30 September 43.0

Pledged assets and contingent liabilities for the parent company

SEK m 30 Sep
2010
30 Sep
2009
31 Dec
2009
Pledged assets 0.7
Contingent liabilities 76.0 34.9 39.0

Operating segments

1 Jan -30 Sep Full year Oct-Sep
SEK m 2010 2009 2009 12 months
Europe
External sales 516.0 596.1 775.0 694.9
Total net sales 516.0 596.1 775.0 694.9
Depreciations -4.2 -4.2 -5.7 -5.7
Operating profit*) 49.0 52.2 70.0 66.8
International
External sales 209.9 192.3 271.3 288.9
Total net sales 209.9 192.3 271.3 288.9
Depreciations -1.9 -1.5 -2.0 -2.4
Operating profit*) 12.5 2.8 5.0 14.7
Dantherm Filtration
External sales 441.4 441.4
Total net sales 441.4 441.4
Depreciations -13.2 -13.2
Operating profit*) 23.5 23.5
Other - not allocated
External sales 5.0 4.3 5.7 6.4
Total net sales 5.0 4.3 5.7 6.4
Depreciations -7.0 -7.5 -10.4 -9.9
Operating profit*) -17.4 -33.4 -41.7 -25.7
Group
Net sales 1,172.3 792.7 1,052.0 1,431.6
Depreciations -26.3 -13.2 -18.1 -31.2
Operating profit*) 67.6 21.6 33.3 79.3
Acquisition costs -10.6 -10.6
Restructuring and integration costs -23.3 -10.0 -10.0 -23.3
Operating profit 33.7 11.6 23.3 45.4
Profit before tax 14.8 6.5 17.2 25.5
Net profit 10.8 3.0 14.6 22.4

*) Excluding restructuring/integration costs and acquisition

Dates for the publication of financial information

Interim Report Q4 16 February, 2011 Q1 Report 26 April, 2011 Annual Meeting 26 April, 2011

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.

Helsingborg, 22 October 2010

Sven Kristensson President and CEO

Report on Review of Interim Financial Information

Introduction

We have reviewed the accompanying interim report of Nederman Holding AB as of 30 September 2010 and the nine-month period then ended. The Board of Directors and the CEO are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the 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 Standard on Review Engagements (SÖG) 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review of interim financial information 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 Swedish Standards on Auditing RS and other generally accepted auditing standards in Sweden and consequently does 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 accompanying interim report is not prepared, in all material respects, for the Group in accordance with IAS 34 and the Annual Accounts Act and for the Parent company in accordance with the Annual Accounts Act.

Helsingborg 22 October 2010

KPMG AB

Alf Svensson Chartered 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 factor.

Nederman may be required to disclose the information provided herein according to the Swedish Securities Exchange and Clearing Operations Act and/or the Financial Instruments Trading Act. The information was submitted for publication on 22 October 2010 at 8 a.m.

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: [email protected] e-mail: [email protected]

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 services in the environmental technology sector. The company's products and systems are contributing to the creation of clean and safe working environments focusing on clean air, recycling and environmentally friendly transport management.

Nederman's offering on the market encompasses everything from the design stage through to installation, commissioning and servicing. Sales and marketing are carried out via subsidiaries in 27 countries as well as agents and distributors in over 30 countries. Nederman develops and produces in its own manufacturing and assembly units in 8 countries.

In April 2010, Dantherm Filtration, with its primary focus on industrial air filtration, was acquired.

The Group was floated in 2007 on OMX Small Cap list; it has circa 1500 employees and a turnover of circa 2 billion SEK.

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