Year-end report 2021

A strong finish to an excellent year

Quarter 4, 2021

• Incoming orders amounted to SEK 1,352m (918), equivalent to currency-neutral growth of 47.8 percent compared with the same period last year. Compared with the corresponding quarter in 2019, incoming orders increased currency-neutral by 23.5 percent.
• Net sales amounted to SEK 1,152m (940), equivalent to currency-neutral growth of 22.7 percent compared with the same period last year.
• Operating profit was SEK 126.1m (93.8), giving an operating margin of 11.0 percent (10.0).
• Adjusted operating profit was SEK 126.9m (94.0), giving an adjusted operating margin of 11.0 percent (10.0).
• Net profit was SEK 84.4m (55.1).
• Earnings per share were SEK 2.41 (1.57).

January – December, 2021

• Incoming orders amounted to SEK 4,623m (3,480), equivalent to currency-neutral growth of 38.9 percent compared with last year. Compared with 2019 incoming orders increased currency-neutral by 19.6 percent.
• Net sales amounted to SEK 4,042m (3,675), equivalent to currency-neutral growth of 14.9 percent compared with the same period last year.
• Operating profit was SEK 458.9m (219.0), giving an operating margin of 11.4 percent (6.0).
• Adjusted operating profit was SEK 431.2m (295.6), giving an adjusted operating margin of 10.7 percent (8.0).
• Net profit was SEK 305.3m (110.4).
• Earnings per share were SEK 8.70 (3.15).
• The Board of Directors proposes a dividend of SEK 3.50 (-) per share.

CEO’s comments

”Nederman finished the year on a strong note. During the fourth quarter, the Group’s adjusted  operating profit amounted to SEK 126.9m (94.0), corresponding to an adjusted operating margin of 11.0 percent (10.0), while orders received increased organically by a full 47.7 percent. In summary, a year in which we have grown with good profitability and advanced our position in a market that continues to have great potential.

I can say that it was another positive quarter for Nederman, with higher sales and orders received, as well as operating margin, compared with the corresponding period last year. This means that, for full-year 2021, we can report an adjusted operating margin of 10.7 percent and currency-neutral growth clearly in excess of 10 percent, and have thereby achieved our financial targets. We continued to generate healthy cash flow and strengthened our financial position. This provides scope for further investments in growth and a higher dividend. The Board of Directors proposes a dividend of SEK 3.50 per share for the 2021 financial year.

We ended the year with a record-level order backlog, which provides the possibility for continued strong development of sales in the coming quarters. At the same time, concern remains in the market regarding supply chains and high transport and material prices. We remained successful in managing factors within our control, but are aware that we may be affected to a greater degree in the long term. This applies especially if the problems persist over a long time. During the quarter, we saw major disruption in some of our customer segments, primarily the automotive industry, and an increasingly concerning geopolitical development.

At the same time, in such a challenging environment and market, we have opportunities to advance our position, particularly with our leading-edge digital offering. During the quarter, we secured new customers and business with the support of our new 3D design tool, Quick-Fit Visual®, we continued to increase our share of IoT ready systems, as well as our Insight subscriptions. Several customers signed long-term service agreements, which also include digital monitoring and control of equipment. This means that our revenue generation is successively shifting from the current focus on installed products to subscriptions and aftermarket, fully in line with our vision of being able to offer Clean Air as a Service. During the quarter, we also strengthe-ned our position through an acquisition. UK company Energy Save System Ltd may be small in size, but it will accelerate our digital offering, particularly in the area of energy savings.

STABILITY IN OUR DIVISIONS

All four divisions ended the year on a positive note. Nederman Extraction & Filtration Technology displayed a continued solid base of pro-duct sales, which raised sales during a quarter that had an absence of large orders. For Nederman Process Technology, there was no shortage of orders of all sizes and in all regions. Orders received increased organically by a full 168 percent during the quarter and the division increased its external order backlog by SEK 482m in 2021. Nederman Duct & Filter Technology had a stable end to the year, with higher orders received and sales, and continued good profitability. Nederman Monitoring & Control Technology achieved a new profitability record in the quarter, with an adjusted EBITA margin of a full 26.5 per-cent. Successful component sourcing, combined with strong sales, were the factors behind this development. At the same time, the division had even higher growth ambitions for 2021, but these were dampened due to difficulties in visiting customers and projects. 

CAUTIOUS OPTIMISM 

Although the development in our divisions remains positive, there is a risk that supply chain problems and high material and transport prices will impact customers’ investment decisions and the possibility of con-ducting business, as well as our own production and capacity to deliver. In addition, geopolitical concerns have grown in a world where many societies are still under restrictions related to the handling of covid-19. In general, however, we are cautiously optimistic about the next few quarters, but can see that uncertainty has increased in our markets.

Although this uncertainty is contributing to dampening the short-term outlook in our industry, Nederman’s long-term potential continues to strengthen. In a world in which the insight is increasing regarding the damage that poor air does to people, Nederman, with its leading offering within industrial air filtration, has a key role to play. As market leader, we have a responsibility to disseminate knowledge and advance developments. In November, we conducted the Green Awakening event for a broad audience in Stockholm. Together with external  speakers, we presented challenges and opportunities related to clean air, what the problems are, and what needs to be done.

The industry has begun to waken up to the fact that digitally future-proof air filtration solutions should be standard. This strengthens our leading position, and we will continue our development to offer clean air as a service.”

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 February 15, 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 2100 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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