Stable finish to the year

• Incoming orders amounted to SEK 1,396m (1,352), equivalent to a currency neutral decrease of 6.7 percent compared with the same period last year.
• Net sales amounted to SEK 1,515m (1,152), equivalent to currency neutral growth of 20.4 percent compared with the same period last year.
• Adjusted EBITA was SEK 161.1m (143.9), giving an adjusted EBITA margin of 10.6 percent (12.5).
• Net profit was SEK 90.9m (84.4).
• Earnings per share were SEK 2.59 (2.41).
• Cash flow from operating activities amounted to SEK 87.8m (159.0).

• Incoming orders amounted to SEK 5,425m (4,623), equivalent to currency neutral growth of 9.1 percent compared with the last year.
• Net sales amounted to SEK 5,179m (4,042), equivalent to currency neutral growth of 18.5 percent compared with the last year.
• Adjusted EBITA was SEK 566.6m (494.6), giving an adjusted EBITA-margin of 10.9 percent (12.2).
• Net profit was SEK 328.7m (279.0*).
• Earnings per share were SEK 9.37 (7.95*).
• Cash flow from operating activities amounted to SEK 345.7m (519.8).
• The Board of Directors proposes a dividend of SEK3.75 (3.50) per share.

* The comparative figures shown exclude other operating income of SEK 26.3m, net after tax, which was recognised in the second quarter of 2021 and pertained to a Norwegian defined-benefit pension plan that was of a non-recurring nature. Including other operating income, net profit amounted to SEK 305.3m and earnings per share to SEK 8.70 for the full year 2021.

CEO's comments

"Nederman's positive performance also continued in the fourth quarter. Sales grew currency neutrally by 20 percent following the earlier very strong order intake with all divisions contributing, and adjusted EBITA reached the second highest level ever. To summarise the year, we delivered a record order backlog, advanced our market positions and successfully addressed challenges.

The final quarter of the year was also a positive one for Nederman, with sustained healthy demand for our leading industrial air filtration offering. Three of four divisions reported higher orders received and all divisions reported increased sales. For the group as a whole, sales rose to SEK 1,515m (1,152), which for the second consecutive quarter means a new record and that sales for full-year 2022 exceeded SEK 5 billion. However, continued challenges in the supply chain, inflationary pressure and bad debt losses primarily in China, dampened profitability. The adjusted EBITA margin amounted to 10.6 percent (12.5) in the fourth quarter and to 10.9 percent (12.2) for fullyear 2022. Our efforts to increase operational efficiency continued undiminished, and helped us to maintain profitability and cash flow at good levels despite all of the challenges.

In 2022, Nederman's order backlog reached record levels for the end of a financial year , which provides the opportunity for continued favourable development of sales in the coming quarters. In parallel, our customers remain concerned about matters such as the price and availability of energy. As a world-leading environmental technology company in advanced air filtration, we help to reduce energy consumption in production and thus to mitigate the impact of higher energy prices. During the fourth quarter, we launched Nederman SAVE, an intelligent digital system, that makes it possible for our customers to reduce energy consumption for air filtration by up to 70 percent. We also reinforced our focus on contributing towards faster and more sustainable development of important areas for the future, such as recycling, green energy and battery manufacturing. We develop special solutions for these industries and collaborate closely with customers.

Our strategy remains intact. We are optimising, increasing our presence and strengthening our digital offering, with the objective of creating profitable growth and becoming the leader in our prioritised markets. In the third quarter, we acquired the US company RoboVent, which helped us to achieve our now leading position also in the important welding segment in North America. We continued work to develop the new ducting systems operations in Australia. In the fourth quarter, we completed a minor acquisition of the Swiss distributor MBE AG, which will help to strengthen Gasmet's position in Europe. Acquisitions remain important to add new technology to operations and to strengthen market presence.

STABLE END TO THE YEAR IN OUR DIVISIONS
Despite the challenges, the performance of our divisions was generally favourable during the year's final quarter. Nederman Extraction & Filtration Technology secured several orders in prioritised growth industries and continued the successful integration of RoboVent. Nederman Process Technology delivered from its record order backlog and added several new orders, mainly in recycling. The division's high return on capital employed provides a significant contribution to achieving the group's objectives. Nederman Duct & Filter Technology secured new orders in battery manufacturing and continues to invest in more efficient production. Lastly, Nederman Monitoring & Control Technology noted an improvement in component supplies, which began to facilitate execution of the division's large order backlog . Moreover, initiatives in North America are starting to yield ever greater rewards.

HIGHER UNCERTAINTY BUT CONTINUED CAUTIOUS OPTIMISM
Even if the development in our divisions remains positive, we see a risk that challenges in our supply chain, high inflation and a weaker economic outlook can impact customers' investment decisions and possibility of conducting business. In addition, there is no indication that the geopolitical insecurity will ease. Nonetheless, we remain cautiously optimistic about future quarters in view of our strong order backlog, among other factors, and our ability to grow our share of sales in industries with good structural growth. I can also see that industry has increasingly begun to understand that digital, future-proof air filtration solutions should be standard."

Sven Kristensson, CEO

For further information, please contact:
Sven Kristensson, CEO
Telephone: +46 42 18 87 00
e-mail: sven.kristensson@nederman.com

Matthew Cusick, CFO
Telephone: +46 42 18 87 00
e-mail: matthew.cusick@nederman.com

This information is information that Nederman Holding AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 08:00 a.m. CET on February 16, 2023.

About Nederman
Nederman is an environmental technology company and a global leader in industrial air filtration dedicated to capturing, measuring, controlling and cleaning air to make industrial production more efficient, safe and sustainable. Based on industry leading products, solutions and services in combination with an innovative IoT platform we deliver knowledge and facts needed to optimise performance and guarantee emissions compliance to protect people, planet and production.  

The Nederman Group is listed on Nasdaq Stockholm. The Group has approximately 2 400 employees and presence in more than 50 countries. Learn more at nedermangroup.com (http://www.nedermangroup.com)

Nederman Holding AB (publ), P.O. Box 602, SE-251 06 Helsingborg, Sweden.
Corporate registration number: 556576-4205