Nederman Holding

Interim / Quarterly Report • Oct 16, 2014

Interim report January–September 2014

Americas continue to show strength

Quarter 3

• Incoming orders amounted to SEK 701.1m (648.0), which after adjustments is an increase of 2.3%* compared with the same period last year.
• Net sales amounted to SEK 733.0m (645.0), which after adjustments is an increase of 7.9% * compared with the same period last year.
• Operating profit excluding acquisition costs and restructuring costs was SEK 61.4m (52.0). The adjusted operating margin was 8.4% (8.1).
• Operating profit was SEK 51.4m (31.0). The operating margin was 7.0% (4.8).
• Net profit was SEK 28.7m (15.6).
• Earnings per share were before dilution SEK 2.46 (1.33) and after dilution SEK 2.44 (1.33).

January-September

• Incoming orders amounted to SEK 2,025.7m (1,995.6), which after adjustments is a decrease of 1.1%* compared with the same period last year.
• Net sales amounted to SEK 2,020.0 (1,971.1), which after adjustments is a decrease of 0.1%* compared with the same period last year.
• Operating profit excluding acquisition costs and restructuring costs was SEK 118.1m (113.2). The adjusted operating margin was 5.8% (5.7).
• Operating profit was SEK 88.1m (71.6). The operating margin was 4.4% (3.6).
• Net profit was SEK 47.3m (38.4).
• Earnings per share were before dilution SEK 4.05 (3.28) and after dilution SEK 4.03 (3.27).

* adjusted for currency effects and acquisitions

CEO's comments

"In the third quarter Nederman continued to report positive development in the Group's incoming orders and operating margin. Incoming orders showed organic growth of 2.3% compared with the same period last year. It was primarily the Americas that contributed to this development where both North and South America showed good demand. Asia Pacific performed slightly weaker in the quarter, however, we believe that the good trend, especially in China will continue. The situation has not changed in EMEA, where we are meeting a tough market situation that is being intensified by concerns about Ukraine and the Middle East.

Sven Kristensson, CEO

Key figures, Group

Operating key figures, Group

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

		1 July-30 Sep		1 Jan-30 Sep		Oct-Sep
SEK m	2014	2013	2014	2013	2013	12 months
Net sales	733.0	645.0	2,020.0	1,971.1	2,659.2	2,708.1
EBITDA	73.3	64.2	153.0	149.9	219.4	222.6
EBITDA-margin, %	10.0	9.9	7.6	7.6	8.3	8.2
Operating profit	61.4	52.0	118.1	113.2	170.2	175.1
Operating margin, %	8.4	8.1	5.8	5.7	6.4	6.5
Operating cash flow	56.4	58.8	99.7	105.4	226.7	221.1
Return on operating capital, %	19.4	16.6	12.8	12.4	14.2	13.9
Net debt/EBITDA, multiple					2.6	2.8

Financial key figures, Group

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

1 July-30 Sep			1 Jan-30 Sep		Oct-Sep
2014	2013	2014	2013	2013	12 months
51.4 7.0 44.2 28.7 2.45 18.1	31.0 4.8 21.6 15.6 1.33 10.8	88.1 4.4 70.5 47.3 4.03 9.9	71.6 3.6 50.0 38.4 3.28 8.7	127.5 4.8 99.7 69.7 5.94 11.4 570.9 92.1	144.0 5.3 120.2 78.6 6.70 12.7 619.7 94.6 6.8
					Full year 5.8

Development per operating segment

EMEA

In EMEA we are facing a continued difficult market situation that has been reinforced by concerns about Ukraine and the Middle East. Weak demand continued during the quarter in the EMEA operating segment and incoming orders were lower compared with last year. Demand for system-related orders was weak while aftermarket business is the activity where development has been especially positive.

The performance in Germany continued to be weak with lower incoming orders compared with Q3 2013. There is a specific lack of major investment projects. Incoming orders for ongoing product sales and the aftermarket improved.

Demand remained weak in the Nordic region too, with significantly lower incoming orders as a result. In the Benelux countries, where there was a positive start to the year, incoming orders in Q3 were weak.

The positive trend in demand that was noted in Southern Europe in the first half of the year continued into the third quarter and incoming orders progressed favourably compared with the same period in the previous year. Sales of medium-sized system solutions in Spain were noteworthy.

In the UK incoming orders strengthened in Q3 and ended at a higher level compared with the same period last year. During the quarter, design and technology for the production of downdraught benches were acquired from Air Cleaning Systems Ltd (ACS). During the quarter production was successfully integrated in Nederman's production structure and sales of downdraught benches produced by Nederman have started.

Incoming orders in Poland were slightly higher than the same period last year.

Efforts initiated during the quarter aimed at improving the efficiency of our European organization have proceeded as planned. Results for the quarter were affected by restructuring costs of SEK 10m relating to the aforementioned efficiency measures. The total cost of restructuring for the year that has affected earnings is SEK 30m. As previously announced, total restructuring costs amounting to SEK 35m will be reported in 2014.

		1 July - 30 Sep	1 Jan - 30 Sep		Organic	Full year	Oct - Sep
SEK m	2014	2013	2014	2013	growth,%	2013	12 months
Incoming orders	317.4	320.5	986.4	1,101.3	-13.7	1,449.4	1,334.5
Net Sales	350.6	345.1	1,032.6	1,034.6	-3.8	1,409.5	1,407.5
Depreciation	-5.8	-6.0	-17.4	-17.9		-24.3	-23.8
Operating Profit *)	32.1	21.4	71.3	61.6		73.3	83.0
Operating margin, %*	9.2	6.2	6.9	6.0		5.2	5.9

*) excluding restructuring/integration costs and acquisition costs

Incoming orders for the period amounted to SEK 317.4m, which is a fall of 6.2 per cent adjusted for currency effects, compared to the same period last year.

Incoming orders for the January-September period fell by 13.7 per cent adjusted for currency effects compared to last year.

Net sales for the period amounted to SEK 350.6m, which is a decline of 3.3 per cent adjusted for currency effects compared to the same period last year.

Net sales for the January-September period fell by 3.8 per cent adjusted for currency effects compared to last year.

Asia Pacific

In the Asia Pacific operating segment, incoming orders were lower in Q3 compared with the same period last year. It does not change our positive view of the region where the strong performance, particularly in China, is expected to continue.

In China, which has developed very well over the year as a whole, incoming orders for larger systems were down, although smaller systems and product sales progressed well. However, incoming orders ended at a lower level than the corresponding quarter last year. China is an important market and we continue to focus on developing and strengthening our positions with local Chinese customers. We believe that the good trend in China will continue.

Incoming orders in South-East Asia were at the same level as the same quarter last year. We are receiving many inquiries in South-East Asia but decisions are taking time.

In Australia, which started the year with a weak first quarter but a more positive second quarter, incoming orders declined in Q3 and ended at slightly lower level than the corresponding period last year. Nederman's activities in Australia are dependent on the mining and raw materials industry where demand at present is weak.

	1 July - 30 Sep		1 Jan - 30 Sep		Organic	Full year	Oct - Sep
SEK m	2014	2013	2014	2013	growth,%	2013	12 months
Incoming orders	70.2	75.5	259.8	212.0	22.4	300.9	348.7
Net Sales	100.5	67.1	221.2	220.9	0.5	291.8	292.1
Depreciation	-1.9	-1.2	-4.4	-4.0		-5.4	-5.8
Operating Profit *)	0.8	2.2	-5.4	-5.0		13.6	13.2
Operating margin, %*	0.8	3.3	-2.4	-2.3		4.7	4.5

*) excluding restructuring/integration costs and acquisition costs

Incoming orders for the period amounted to SEK 70.2m, which is a fall of 14.2 per cent adjusted for currency effects, compared to the same period last year.

Incoming orders until September rose by 22.4 per cent adjusted for currency effects, compared to last year.

Net sales for the period amounted to SEK 100.5m, which is a rise of 44.1 per cent adjusted for currency effects, compared to the same period last year.

Net sales until September, rose by 0.5 per cent adjusted for currency effects, compared to last year.

Americas

Incoming orders in the Americas operating segment showed continued strength and progressed positively on all markets during the third quarter.

In the US incoming orders increased compared with the corresponding period last year. Several significant orders were signed during the quarter. Orders were received for a complete air filtration system for gas turbines, a recycling plant and for a filtration system for a power pant in South America. The joint value of these orders was SEK 91m.

We see a continued good willingness to invest with positive progress in both product and system sales in the US,

Both Canada and Brazil reported continued a positive trend in demand and incoming orders increased on both markets compared with Q3 last year. Development was especially good in Brazil as a result of our efforts aimed at enlarging our presence, with greater added value in local operations.

	1 July - 30 Sep		1 Jan - 30 Sep		Organic	Full year	Oct - Sep
SEK m	2014	2013	2014	2013	growth,%	2013	12 months
Incoming orders	313.5	252.0	779.5	682.3	12.1	1,005.1	1,102.3
Net Sales	281.9	232.8	766.2	715.6	5.0	957.9	1,008.5
Depreciation	-2.2	-2.3	-6.7	-6.9		-9.0	-8.8
Operating Profit *)	43.6	35.6	98.8	97.8		138.9	139.9
Operating margin, %*	15.5	15.3	12.9	13.7		14.5	13.9

*) excluding restructuring/integration costs and acquisition costs

Incoming orders for the period amounted to SEK 313.5m, which is a rise of 17.8 per cent adjusted for currency effects, compared to the same period last year.

Incoming orders until September rose by 12.1 per cent adjusted for currency effects, compared to last year.

Net sales for the period amounted to SEK 281.9m, which is a rise of 14.2 per cent adjusted for currency effects, compared to the same period last year.

Net sales until September, rose by 5.0 per cent adjusted for currency effects, compared to last year.

Outlook

Our assessment, which has been unchanged for a number of quarters, remains valid and means we see continued positive and stable development in the Americas and continued improvements in demand in Asia Pacific, especially China. In EMEA the markets and demand are expected to be weak.

Quarter 3

Sales and incoming orders

Incoming orders were SEK 701.1m (648.0), which adjusted for currency effects and acquisitions is an increase of 2.3 per cent compared to the same quarter last year.

Net sales amounted to SEK 733.0m (645.0), which adjusted for currency effects and acquisitions is an increase of 7.9 per cent compared to the same quarter last year.

Earnings

The Group's operating profit for the quarter was SEK 51.4m (31.0). Adjusted for acquisition costs and restructuring costs, the operating profit was SEK 61.4m (52.0), giving an operating margin of 8.4 per cent (8.1).

The profit before tax increased to SEK 44.2m (21.6). The net profit was SEK 28.7m (15.6), giving earnings per share of SEK 2.45 (1.33).

Operating cash flow and capital expenditure

The operating cash flow was SEK 56.4m (58.8). Capital expenditure during the quarter was SEK 9.1m (18.0).

January - September

Sales and incoming orders

Incoming orders was SEK 2,025.7m (1,995.6), which adjusted for currency effects and acquisitions is a decrease of 1.1 per cent.

Net sales amounted to SEK 2,020.0m (1,971.1), which adjusted for currency effects and acquisitions is a decrease of 0.1 per cent.

Earnings

The operating profit for the period was SEK 88.1m (71.6). Adjusted for acquisition costs and restructuring costs the operating profit was SEK 118.1m (113.2). The operating margin was 5.8 per cent (5.7). The restructuring costs during the period amounted to SEK 30.0m.

Return on operating capital increased to 12.8 per cent compared to 12.4 per cent last year.

The profit before tax increased to SEK 70.5 (50.0). The net profit was SEK 47.3m (38.4), giving earnings per share of SEK 4.03 (3.28).

Operating cash flow and capital expenditure

The operating cash flow was SEK 99.7m (105.4). Capital expenditure during the period was SEK 23.8m (38.4), of which capitalised development costs amounted to SEK 1.3m (3.3).

Other financial information

Liquidity: At the end of the period the Group had SEK 239.2m in cash and cash equivalents as well as SEK 75.6m in available but unutilised overdraft facilities. In addition there was a credit facility of SEK 259.9m, which is a part of Nederman's loan agreement with SEB.

The equity in the Group as of 30 September 2014 amounted to SEK 655.3m (579.8). 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 29.2 per cent as of 30 September 2014 (26.6). The net financial debt/equity ratio, calculated as net debt in relation to equity was 94.6 per cent (113.5).

Number of employees

The average number of employees during the quarter was 1,806 (1,878). The number of employees at the end of the period was 1,937 (1,927).

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 pages 38-39 and in note 24 of the 2013 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 2014. 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 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 reclassification

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 2013 Q3: SEK 6.5m

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, 16 October 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 July–30 Sep	1 Jan–30 Sep		Full year	Oct-Sep
SEK m	NOTE	2014	2013	2014	2013	2013	12months
Net sales		733.0	645.0	2,020.0	1,971.1	2,659.2	2,708.1
Cost of goods sold		-469.7	-404.6	-1,295.9	-1,254.0	-1,692.6	-1,734.5
Gross profit		263.3	240.4	724.1	717.1	966.6	973.6
Selling expenses		-152.0	-145.2	-456.3	-455.4	-600.1	-601.0
Administrative expenses		-42.5	-43.0	-137.6	-131.8	-171.9	-177.7
Research and development expenses		-2.4	-4.6	-7.5	-16.1	-21.6	-13.0
Acquisition expenses					-0.6	-1.7	-1.1
Restructuring/ integration expenses		-10.0	-21.0	-30.0	-41.0	-41.0	-30.0
Other operating income/expenses		-5.0	4.4	-4.6	-0.6	-2.8	-6.8
Operating profit		51.4	31.0	88.1	71.6	127.5	144.0
Financial income		-0.6	1.6	1.6	1.4	2.0	2.2
Financial expenses		-6.6	-11.0	-19.2	-23.0	-29.8	-26.0
Net financial income/expenses		-7.2	-9.4	-17.6	-21.6	-27.8	-23.8
Profit/loss before taxes		44.2	21.6	70.5	50.0	99.7	120.2
Taxes		-15.5	-6.0	-23.2	-11.6	-30.0	-41.6
Net profit/loss		28.7	15.6	47.3	38.4	69.7	78.6
Net profit/loss attributable to:
The parent company's shareholders		28.7	15.6	47.3	38.4	69.7	78.6
Earnings per share
before dilution (SEK)		2.46	1.33	4.05	3.28	5.95	6.73
after dilution (SEK)		2.44	1.33	4.03	3.27	5.93	6.69

Consolidated statement of comprehensive income

SEK m	NOTE	2014	1 July-30 Sep 2013	1 Jan-30 Sep 2013 2014		Full year 2013	Oct-Sep 12 months
Net profit/loss		28.7	15.6	47.3	38.4	69.7	78.6
Other comprehensive income
Items that will not be reclassified to the income statement
Revaluation of defined-benefit pension plans		-14.4	2.2	-14.4	2.2	1.6	-15.0
Income taxes		3.3	-0.3	3.3	-0.3	-0.5	3.1
		-11.1	1.9	-11.1	1.9	1.1	-11.9
Items that may be reclassified to the income statement
Exchange differences arising on translation of foreign operations		23.7	-14.5	51.3	-15.4	-6.4	60.3
		23.7	-14.5	51.3	-15.4	-6.4	60.3
Other comprehensive income for the period, net after tax		12.6	-12.6	40.2	-13.5	-5.3	48.4
Total comprehensive income for the period		41.3	3.0	87.5	24.9	64.4	127.0
Total comprehensive income attributable to:		41.3	3.0	87.5	24.9	64.4	127.0
The parent company's shareholders

Consolidated statement of financial position

		30 Sep	30 Sep	31 Dec
SEK m	NOTE	2014	2013	2013
Assets
Goodwill		634.4	598.9	605.4
Other intangible fixed assets		80.3	86.8	84.0
Tangible fixed assets		230.7	224.6	224.1
Long-term receivables		5.8	5.5	5.8
Deferred tax assets		91.6	87.6	79.1
Total fixed assets		1,042.8	1,003.4	998.4
Inventories		324.8	299.3	291.4
Accounts receivable		458.8	457.2	472.0
Other receivables	1	181.4	209.2	146.3
Cash and cash equivalents		239.2	211.5	270.0
Total current assets		1,204.2	1,177.2	1,179.7
Total assets		2,247.0	2,180.6	2,178.1
Equity		655.3	579.8	619.8
Liabilities
Long-term interest bearing liabilities		720.2	710.6	711.0
Other long-term liabilities		13.5	14.0	13.4
Provision for pensions		107.4	103.1	97.2
Deferred tax liabilities		20.4	29.8	26.9
Total long-term liabilities		861.5	857.5	848.5
Current interest bearing liabilities		31.3	55.8	32.7
Accounts payable		275.3	282.1	255.5
Other liabilities	1	423.6	405.4	421.6
Total current liabilities		730.2	743.3	709.8
Total liabilities		1,591.7	1,600.8	1,558.3
Total equity and liabilities		2,247.0	2,180.6	2,178.1

Consolidated statement of changes in equity in summary

SEK m	30 Sep 2014	30 Sep 2013	31 Dec 2013
	619.8	601.2	601.2
Opening balance on 1 January
Net profit	47.3	38.4	69.7
Other comprehensive income
Change in translation reserve	51.3	-15.4	-6.4
Revaluation of defined-benefit pension plans, net of tax	-11.1	1.9	1.1
Total other comprehensive income for the period	40.2	-13.5	-5.3
Total comprehensive income for the period	87.5	24.9	64.4
Transactions with owners
Dividend paid	-46.7	-46.9	-46.9
Share-based payments	1.4	0.6	1.1
Repurchase of own shares	-6.7
Closing balance at the end of period	655.3	579.8	619.8

Consolidated cash flow statement

			1 Jan–30 Sep	Full year	Oct-Sep
SEK m	NOTE	2014	2013	2013	12 months
Operating profit		88.1	71.6	months 127.5	144.0
Adjustment for:
Depreciation of fixed assets		34.9	36.7	49.2	47.4
Other adjustments		-3.8	4.7	-16.8	-25.3
Interest received and paid incl. other financial items		-9.4	-21.1	-33.6	-21.9
Taxes paid		-34.9	-56.0	-67.0	-45.9
Cash flow from operating activities before		74.9	35.9	59.3	98.3
changes in working capital
Cash flow from changes in working capital		-28.0	-15.8	50.1	37.9
Cash flow from operating activities		46.9	20.2	109.4	136.1
Net investment in fixed assets		-11.3	-25.2	-28.6	-14.7
Acquired/divested units	2		-8.5	-8.5
Cash flow before financing activities		35.6	-13.5	72.3	121.4
Dividend paid		-46.7	-46.9	-46.9	-46.7
Cash flow from other financing activities		-29.7	51.2	15.9	-65.0
Cash flow for the period		-40.8	-9.2	41.3	9.7
Cash and cash equivalents at the beginning of the period		270.0	224.6	224.6	270.0
Translation differences		10.0	-4.0	4.1	18.1
Cash and cash equivalents at the end of the period		239.2	211.5	270.0	297.7
Operating cash flow
Operating profit		88.1	71.6	127.5	144.0
Adjustment for:
Depreciation of fixed assets		34.9	36.7	49.2	47.4
Restructuring and integration costs		19.8	28.4	39.3	30.7
Acquisition costs			5.0	6.0	1.0
Other adjustments		-3.8	4.7	-16.8	-25.3
Cash flow from changes in working capital		-28.0	-15.8	50.1	37.9
Net investment in fixed assets		-11.3	-25.2	-28.6	-14.7
Operating cash flow		99.7	105.4	226.7	221.0

Income statement for the parent company in summary

	1 July-30 Sep		1 Jan-30 Sep		Full year	Oct-Sep
SEK m	2014	2013	2014	2013	2013	12 months
Operating loss	-6.4	-15.0	-22.7	-49.7	-69.9	-42.9
Result from investment in subsidiaries	48.5	-0.1	57.5	35.1	157.8	180.2
Other financial items	-3.8	-6.1	-7.0	-7.9	-5.6	-4.7
Profit/Loss after financial items	38.3	-21.1	27.8	-22.5	82.3	132.6
Appropriations					50.0	50.0
Profit/Loss before taxes	38.3	-21.1	27.8	-22.5	132.3	182.6
Taxes
Net Profit/Loss	38.3	-21.1	27.8	-22.5	132.3	182.6

Statement of comprehensive income for the parent company

		1 July-30 Sep		1 Jan-30 Sep	Full year	Oct-Sep
SEK m	2014	2013	2014	2013	2013	12 months
Net Profit/Loss	38.3	-21.1	27.8	-22.5	132.3	182.6
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	38.3	-21.1	27.8	-22.5	132.3	182.6

Balance sheet for the parent company in summary

	30 Sep	30 Sep	31 Dec
SEK m	2014	2013	2013
Assets
Total fixed assets	1,313.3	1,347.4	1,298.0
Total current assets	221.1	138.0	295.1
Total assets	1,534.4	1,485.4	1,593.1
Shareholder's equity	546.8	415.7	571.0
Liabilities
Total long-term liabilities	718.3	709.0	709.4
Total current liabilities	269.3	360.7	312.7
Total liabilities	987.6	1,069.7	1,022.1
Total shareholders' equity and liabilities	1,534.4	1,485.4	1,593.1

Statements of changes in shareholders' equity in summary

SEK m	30 Sep 2014	30 Sep 2013	31 Dec 2013
Opening balance on 1 January	571.0	484.5	484.5
Net profit/loss	27.8	-22.5	132.3
Other comprehensive income
Total other comprehensive income for the period
Total comprehensive income for the period	27.8	-22.5	132.3
Transactions with owners
Dividend paid	-46.7	-46.9	-46.9
Share-based payments	1.4	0.6	1.1
Repurchase of own shares	-6.7
Closing balance at the end of period	546.8	415.7	571.0

Related parties

SEK m	2014
Subsidiaries
Other operating income	41.5
Dividends received	57.5
Financial income and expenses	5.5
Receivables on 30 Sep	614.3
Liabilities on 30 Sep	220.5

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

		September 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 *)	0.2		0.2
Other receivables	-	181.2	181.2
Total other receivables	0.2	181.2	181.4
Other liabilities
Foreign exchange forward contracts entered *)	3.3		3.3
Other liabilities	-	420.3	420.3
Total other liabilities	3.3	420.3	423.6

*) 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 Sep		Full year	Oct - Sep
SEK m	2014	2013	2013	12 months
EMEA
Incoming orders	986.4	1,101.3	1,449.4	1,334.5
Net sales	1,032.6	1,034.6	1,409.5	1,407.5
Depreciation	-17.4	-17.9	-24.3	-23.8
Operating profit *	71.3	61.6	73.3	83.0
Operating margin, %*	6.9	6.0	5.2	5.9
Asia Pacific
Incoming orders	259.8	212.0	300.9	348.7
Net sales	221.2	220.9	291.8	292.1
Depreciation	-4.4	-4.0	-5.4	-5.8
Operating profit *	-5.4	-5.0	13.6	13.2
Operating margin, %*	-2.4	-2.3	4.7	4.5
Americas
Incoming orders	779.5	682.3	1,005.1	1,102.3
Net sales	766.2	715.6	957.9	1,008.5
Depreciation	-6.7	-6.9	-9.0	-8.8
Operating profit *	98.8	97.8	138.9	139.9
Operating margin, %*	12.9	13.7	14.5	13.9
Not allocated
Depreciation	-6.4	-7.9	-10.5	-9.0
Operating profit /loss*	-46.6	-41.2	-55.6	-61.0
Group
Incoming orders	2,025.7	1,995.6	2,755.4	2,785.5
Net sales	2,020.0	1,971.1	2,659.2	2,708.1
Depreciation	-34.9	-36.7	-49.2	-47.4
Operating profit *	118.1	113.2	170.2	175.1
Acquisition costs		-0.6	-1.7	-1.1
Restructuring and integration costs	-30.0	-41.0	-41.0	-30.0
Operating profit	88.1	71.6	127.5	144.0
Profit before tax	70.5	50.0	99.7	120.2
Net profit	47.3	38.4	69.7	78.6

* excluding restructuring/integration costs and acquisition costs

Invitation to telephone conference

A telephone conference in Swedish will be held to discuss this interim report at 2 p.m. on Thursday 16 October.

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

To participate call 08-51999350. The conference will also be transmitted on the internet.

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

Dates for the publication of financial information

Financial Statement 2014	11 February 2015
Q1 Report	22 April 2015
Annual General Meeting	22 April 2015

Report on Review of Interim Financial Information

Introduction

We have reviewed the accompanying interim report of Nederman Holding AB as of 30 September 2014 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 ISA and other generally accepted auditing standards. The measures used in the review consequently do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. The conclusion of the review does not therefore have the assurance that the conclusion of an audit has.

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, 16 October 2014

Dan Kjellqvist Authorized Public Accountant

KPMG AB

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 16 October 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.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 2.7 billion.