Year-end report 2018

Quarter 4, 2018 

• Incoming orders amounted to SEK 967.8m (815.9), which currency adjusted is an increase of 13.4 percent compared with the same period last year.
• Net sales amounted to SEK 1,069.0m (860.0), which currency adjusted is an increase of 19.4 percent compared with the same period last year.
• Adjusted operating profit was SEK 126.7m (106.8), giving an adjusted operating margin of 11.9 percent (12.4).
• Operating profit was SEK 117.3m (99.1), giving an operating margin of 11.0 percent (11.5).
• Net profit was SEK 89.7m (73.2).
• Earnings per share were SEK 2.56 kr (2.09).*

January - December 2018 

• Incoming orders amounted to SEK 3,479.5m (3,157.3), which currency adjusted is an increase of 7.4 percent compared with last year.
• Net sales amounted to SEK 3,553.9m (3,148.5), which currency adjusted is an increase of 10.1 percent compared with last year.
• Adjusted operating profit was SEK 308.1m (285.8), giving an adjusted operating margin of 8.7 percent (9.1).
• Operating profit was SEK 294.9m (278.1), giving an operating margin of 8.3 percent (8.8).
• Net profit was SEK 203.2m (186.3).
• Earnings per share were SEK 5.79 (5.31).*
• The Board of Directors proposes a dividend of SEK 2.30 (2.00) per share.

* As a consequence of the share split adopted by the annual general meeting, the earnings per share and the Board of Directors' proposed dividend in the previous year has been adjusted. 

CEO’s comments

” After the challenging third quarter when our US operations were hit by production and distribution interruptions in the wake of Storm Florence and the caution in China increased further, it is very satisfying that the year's fourth quarter was strong. Incoming orders in the quarter grew to SEK 967.8m (815.9), equivalent to a currency-neutral growth of 13.4 percent. Sales saw an even stronger development and amounted to SEK 1,069.0m (860.0) during the quarter, corresponding to a currency-neutral growth of 19.4 percent. Adjusted operating profit increased to SEK 126.7m (106.8).

The positive development during the final quarter of the year also means that we see a strong development for the full year for 2018. Incoming orders totalled SEK 3,479.5m (3,157.3), equivalent to a currency-neutral growth of 7.4 percent. Sales amounted to SEK 3,553.9m (3,148.5), corresponding to a currency-neutral growth of 10.1 percent. The adjusted operating profit rose to SEK 308.1m (285.8), corresponding to an adjusted operating margin of 8.7 percent (9.1). The slightly lower margin is mainly explained by increasing investment in innovation and product development. Earnings per share rose to SEK 5.79 (5.31). A dividend per share of SEK 2.30 (2.00) is proposed.

Acquisition of Luwa
During the quarter, Nederman acquired the Swiss group Luwa. This has enabled us to strengthen our operations with a global market leader within the air filtration field for the fibre and textile industries. Luwa's significant market presence and its strong position in the fibre and textile market which is an important market for Nederman, linked with our global organisation, will make the Nederman Group a more complete and attractive partner for our customers, not least in APAC where Luwa has a strong position.

Positive development for Nederman Insight
Just as during the third quarter, Nederman Insight has continued to develop positively. 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. In 2018, Nederman Insight has taken the step from idea to the establishment of significant business operations.We have recently received orders for Insight solutions from customers in the wood industry, foundries and from medical technology companies among others. Nederman Insight as a whole is now approaching an annual turnover 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.

Outlook
Many of our markets are characterised by continued uncertainty. The risk of trade conflicts and financial uncertainty means that decisions about major investments are being delayed and that large projects are being postponed. Despite these geopolitical challenges, our basic view is one of cautious optimism. Environmental issues will continue to be important for our customers and in 2018, we have strengthened our positions in several central areas where we see that future growth will occur.”

Sven Kristensson, CEO

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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 February 19, 2019

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 2200 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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