Interim report January – March 2022

A good start to 2022

Quarter 1, 2022

• Incoming orders amounted to SEK 1,345m (1,035), equivalent to currency-neutral growth of 22.8 percent compared with the same period last year.
• Net sales amounted to SEK 1,094m (868), equivalent to currency neutral growth of 18.5 percent compared with the same period last year.
• Operating profit was SEK 98.2m (87.2), giving an operating margin of 9.0 percent (10.0).
• Adjusted operating profit was SEK 98.3m (87.4), giving an adjusted operating margin of 9.0 percent (10.1).
• Net profit was SEK 70.5m (57.2).
• Earnings per share were SEK 2.01 (1.63).
• Extended, sustainability-linked refinancing agreements were signed during the quarter.

CEO’s comments
 

” The high level of activity in our markets continues. During the first quarter, Nederman’s order intake increased by 23 percent organically, with all four divisions showing good growth. The adjusted operating profit amounted to SEK 98m (87), the highest ever for a first quarter. Despite increased uncertainty in the world around us, we continued to advance our market positions.

Our good momentum from 2021 continued into the new year. I can summarise the first quarter of 2022 as having very strong order intake, higher sales and an increase to nearly SEK 100m in adjusted operating profit, the best ever for a first quarter. Sales, and thus also our profit, would have been even better if customers' projects had been able to start as planned and the disruptions to the supply chain had not been as extensive. The challenges mainly affected two of our divisions. The Group’s adjusted operating margin amounted to 9.0 percent (10.1) for the quarter. A record-high order backlog provides good conditions for a continued positive development of sales during the remainder of 2022.

Concern has grown in the market relating to supply chains and high transport and materials prices. Naturally, Russia’s invasion of Ukraine is an important factor behind this, but new covid-19-related lockdowns in China are also having an impact. In addition, we see that inflation is beginning to gain a foothold in all areas of the economy in a way that we have not seen for decades. In this extremely uncertain macro environment, we are working intensively to successfully manage whatever is within our control. Prioritised areas include securing component supplies and the ability to deliver on time to customers, combined with ongoing price adjustments. I am satisfied with the work being conducted in our divisions, but the challenges remain and require a continued high level of readiness. We have puased our Russian operations and halted all new orders in the region. The Russian market comprises a very small part of the Group’s sales, less than 1 percent in 2021.

We continue to advance our positions in our regions and in prioritised customer segments, including rapidly expanding industrial segments, such as battery production, renewable energy and recycling. A key reason for our success is our cutting-edge digital offering, in line with our vision of being able to offer Clean Air as a Service. We continue to invest in production and logistics to increase our capacity and effectiveness, including in Friesenheim in Germany and Thomasville in the US. Major investments are also being made in solar cells to increase our degree of energy self-sufficiency. Nederman’s strong sustainability focus also provides the possibility for better financing terms.

STRONG ORDERS RECEIVED IN ALL DIVISIONS
The activity in our divisions was high during the quarter. Nederman Extraction & Filtration Technology displayed a continued solid base of product sales, while orders received gathered new momentum. Nederman Process Technology continues to receive new orders, primarily from the textile industry and the order backlog is now twice as large as it was a year ago. Nederman Duct & Filter Technology began 2022 as strongly as 2021 ended, with higher orders received and sales, and continued good profitability. Nederman Monitoring & Control Technology increased its orders received by high figures, but problems with component supplies impacted sales and thus profitability.

CAUTIOUS OPTIMISM DESPITE CONTINUED UNCERTAINTY
Although the development in our divisions remains positive, we see that the problems in our supply chain and the high prices of materials and logistics will impact customers’ investment decisions and the possibility of conducting business, as well as our own production and ability to deliver. The growing geopolitical uncertainty that we warned of previously has now become reality, with a risk that the situation will deteriorate further going forward, with increasingly negative implications for the global economy. Despite all of this heightened volatility and uncertainty, we remain positive about future quarters, due to such factors as the strong orders received in our divisions.

At the same time, the long-term potential for Nederman’s offering is continuing to grow. Recently, the WHO presented its updated database of global air quality, which showed that 99 percent of the population breathes air that often contains hazardous particles. In a world in which insight into the damage that poor air does to people is increasing, Nederman, with its leading offering within industrial air filtration, has a key role to play and nearly unlimited possibilities for growth.”

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 April 22, 2022.

About Nederman
Nederman is 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.  

The Nederman Group is listed on Nasdaq Stockholm. The Group has approximately 2200 employees and presence in more than 50 countries. Learn more at nedermangroup.com

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

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