Interim report January-June 2017

Quarter 2 

• Incoming orders amounted to SEK 849.4m (726.5), which organically is an increase of 13.6% compared with the same period last year.
• Net sales amounted to SEK 759.2m (770,5), which organically is a decrease of 4.9% compared with the same period last year.
• Operating profit was SEK 60.9m (65.4), giving an operating margin of 8.0% (8.5).
• Net profit was SEK 38.3m (43.1).
• Earnings per share were SEK 3.28 (3.69).

January-June

• Incoming orders amounted to SEK 1,580.5m (1,465.3), which organically is an increase of 4.4% compared with the same period last year.
• Net sales amounted to SEK 1,519.8m (1,495.2), which organically is a decrease of 2.0% compared with the same period last year.
• Operating profit was SEK 109.7m (96.2), giving an operating margin of 7.2% (6.4).
• Net profit was SEK 70.2m (63.2).
• Earnings per share were SEK 6.01 (5.41).

CEO’s comments
“Nederman saw a positive performance during the second quarter of the year. Incoming orders totalled SEK 849.4m (726.5), equivalent to an organic growth of 13.6 percent. Sales amounted to SEK 759.2m (770.5). The slightly lower sales resulted from the lower order intake in the previous quarter. Group operating profit for the quarter totalled SEK 60.9m, corresponding to an operating margin of 8.0 percent (8.5).

The positive trend in order intake was achieved through good growth in all divisions with a particularly strong development in the Americas, where incoming orders increased by just over 27 percent organically. The positive development in the Americas is primarily due to good development in the USA where demand for the Group's solutions grew following a number of weaker quarters.

The European market has strengthened further and is now characterised by stability and growing cautious optimism. In the Americas, the market situation continues to be characterized by uncertainty with prolonged decision-making processes, although there are more positive undertones in the USA.

In Canada and Mexico, uncertainty has increased about the US administration's intentions in regard to the NAFTA trade agreement. Despite the continuing uncertainty, we saw positive developments in both countries during the second quarter of the year.

Our biggest challenge continues to be the uncertainty around sales of major projects in the USA and China. Demand in the USA has been affected by a downturn in industrial production in 2016. The strong order intake in the second quarter was very pleasing, but it is too early to draw any definite conclusions for the forthcoming quarters. At the same time, there are indications that companies in the region are planning to increase investments. In China, we are working with a number of interesting projects, but the market is still characterised by clear funding constraints. In the longer-term, however, Nederman sees future business opportunities in China due to increased environmental awareness.

With the exception of China, the majority of markets in APAC developed positively in the quarter. Growth was particularly pronounced in India, which has seen a positive development over a longer period. The focus for our business operations in APAC in the recent period has been to improve profitability. It is therefore particularly pleasing to note that we are moving towards profitability and that we have a positive view of APAC for the full year.

Overall, the second quarter of the year was a good quarter for Nederman with good growth in order intake. The order backlog is now at a higher level than at mid-2016, which means that our basic outlook is positive for the remainder of 2017.

Nederman's commitment to taking a leading position in digitalization of our solutions continued during the second quarter, including the launch of Nederman Insight. As an important step on our way to achieving our ambitions, we have also recruited Aage Snorgaard to the position of SVP & Head of Digital Solutions.

Further strengthening of Group management has been made with Per Lind taking over a new role with responsibility for global key accounts. Tomas Hagström has been recruited to the position of SVP & Head of Division Americas."

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 and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 08:00 a.m. CET on July 12, 2017.

Facts about Nederman

Nederman is one of the world's leading companies supplying products and solutions in the environmental technology sector focusing on industrial air filtration. The company's products and solutions contribute to reducing the environmental impact, create safe and clean working environments and improve production efficiency. Nederman offers complete solutions, including engineering and design, commissioning, installation, training and aftermarket. Sales are managed through the Group’s own sales offices and distributors in over 50 countries. Production is performed in 11 countries on five continents. The Nederman Group is listed on Nasdaq Stockholm and has around 1,800 employees. Learn more at www.nedermangroup.com

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

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