Interim report January-September 2018

Quarter 3, 2018

• Incoming orders amounted to SEK 817.9m (761.0), which currency adjusted is an increase of 1.2 percent compared with the same period last year.
• Net sales amounted to SEK 835.2m (768.7), which currency adjusted is an increase of 2.5 percent compared with the same period last year.
• Operating profit was SEK 50.6m (69.3), giving an operating margin of 6.1 percent (9.0).
• Net profit was SEK 32.9m (42.9).
• Earnings per share were SEK 0.94 (1.22).*

January – September, 2018

• Incoming orders amounted to SEK 2,511.7m (2,341.5), which currency adjusted is an increase of 5.4 percent compared with the same period last year.
• Net sales amounted to SEK 2,484.9m (2,288.5), which currency adjusted is an increase of 6.6 percent compared with the same period last year.
• Adjusted operating profit was SEK 181.4m (179.0), giving an adjusted operating margin of 7.3 percent (7.8).
• Operating profit was SEK 177.6m (179.0), giving an operating margin of 7.1 percent (7.8).
• Net profit was SEK 113.5m (113.1).
• Earnings per share were SEK 3.23 (3.23).*

* As a consequence of the share split adopted by the annual general meeting, the earnings per share for the prior year has been adjusted.

CEO’s comments

” The third quarter of the year was a very challenging quarter for Nederman in several ways. In the USA, we were affected by production and distribution disruption at and around our production facilities which are all located in North and South Carolina where Tropical Storm Florence caused devastation.

In APAC, Nederman had problems of other kinds during the quarter. In China, the caution we could already see in the second quarter increased. Nederman's customers have had difficulty finding financing for larger projects, which has resulted in a weak order intake in the quarter. The economic situation in China has also meant that our customers are deferring their payments longer than before. Rapidly rising commodity prices have also put pressure on the Group's profitability in the region.

EMEA had stable development in the quarter with organic growth of the order intake of 3.5 percent and sales of SEK 410.5 million (376.1).

All in all, the many challenges during the quarter, together with challenging comparative figures from the very strong third quarter of 2017, meant that the order intake decreased organically by 5.6 percent. However, the acquisitions of NEO Monitors and Auburn Filter Sense have had a very positive impact on the Group's development, which means that total orders received increased by 7.5 percent to SEK 817.9 million (761.0).

Despite the challenges in the third quarter, there are several bright spots in our business operations. Nederman Insight, which was established in 2017, is developing faster than we originally anticipated, and both NEO Monitors and Auburn FilterSense are providing significant positive contributions to our business. It is clear that our customers have a great need to establish, with the help of Nederman Insight, a digital and online business with all the benefits this provides. Nederman Insight as a whole is now approaching an annualised order intake equivalent to SEK 250 million. Although Nederman Insight already forms a significant part of the Nederman Group, we are still only at the beginning of the journey aimed at establishing Nederman as the obvious digital partner for our customers.

On October 1, it was announced that the NAFTA Trade Agreement between the USA, Mexico and Canada is being replaced by a new trade agreement, USMCA. Hopefully, this new agreement will mean that some of the uncertainty that has characterised trade between the United States, Mexico and Canada will gradually decrease.

During the last quarter of the year, we will continue the work of managing our ambivalent world in the best possible way and building on the lessons learned in the third quarter.”

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 October 18, 2018.

Facts about Nederman

The Nederman Group is a world-leading supplier and developer of products and solutions within the environmental technology sector. We filter, clean and recycle in demanding industrial environments.
Clean air is a cornerstone for sustainable production and Nederman’s products and solutions improve production efficiency, reduce environmental impact and protect employees from harmful dust, smoke and fumes. The Nederman Group is listed on Nasdaq Stockholm. The Group has 1800 employees and is present 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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