Nederman Holding AB (publ)

Good morning everybody and thank you for coming and listening to us. We're here to present the first quarter of 2024. If we start with a small summary, we say that we have had a quite positive start of the 2024. We have had a good sales mix and that includes an increasing portion of service aftermarket business, and we have by that come to a slightly better result. The margins are increasing. For the rest quarter one, we have had a stable performance, and this is in an increasingly uncertain market, but we have been able to keep up the order intake. Healthy orders received. It's actually the second highest quarterly order intake ever. So we have good performance here. Margins are higher, solid cash flow, and we are continuing advancing with new product launches. And we do have a stronger presence in the growing industry. And we have also investment in increased capacity and efficiency in different areas.

If I move on to slide four and start my summary of the key financials, orders received currency neutrally, they increased 0.8% compared with Q1 2023, which is obviously a very strong quarter. Like Sven mentioned, it's our second highest quarterly order intake ever. Organic growth very slightly negative. We had the acquisition of Argard in 2023 that has contributed some of the growth here too. But the currency neutral plus 0.8% and over that 1.5 billion SEC mark. when it comes to sales sales were lower uh than orders orders received but just below 1.4 billion saying 1.397 million which is a decrease current both currency neutral and organically and the main uh reason behind that and this this shouldn't be a major surprise in in terms of the process technology division is that they have had a low they have had lower order in taking the back end in the last couple of quarters and Therefore, they are the biggest contributors to the decrease. Like I say, over 100 million less in sales than orders means that our backlog of orders has obviously increased. Profitability-wise, Sven mentioned the margins are improving. We've invested in production and logistics, which make a positive contribution to profitability. There's also a favourable sales mix, we could say, between the divisions in respect that the most profitable divisions are those that are contributing more of the overall portion of sales. The final part is that the service business continues to grow, which is a more profitable part of our business as well. For the first quarter, adjusted EBITDA was 174 million SEG versus 173 million last year, which gives an EBITDA margin of 12.5% versus 11.7%. Profit after tax, 90 million Swedish kronor versus 78 million in the same quarter last year and that led to earnings per share of 2.57 swedish krona versus 2.22 in q1 of 2023 when it comes to cash flow and net debt cash flow from operations in the quarter 95 million krona it was behind um the q1 of last of 2020 uh But it must be pointed out, this is the second best, again, the second best quarter one for cash flow from operations that Nerdemand Group has ever seen. This is rather pleasing, and some of that comes down to the order intake, where we have received some down payments on larger projects. Net debt is clearly significantly lower than it was at the same point 12 months ago.

we go into the divisions sven and we start with extraction and filtration technology yeah extraction and filtration technology a mid-size project focusing on composting wood welding other red dust general dust application etc just for its reiterating where they are coming from. The development during the quarter can say that we had better orders received and there has been several major orders, and that is including solutions in areas like green energy, transport, waste management, substituting some of the weaker demand in the other industrial segments like welding and some base industries that are not so eager to invest at this time. Base business has been in line with the 2023 first quarter then. And what is very satisfying is we continue to build our aftermarket business also in this division. And we had double-digit growth also this quarter. The backlog remains high and that is a good foundation for sales development in the coming quarters. It's probably not taking too long because they are having one to two quarters visibility here. First orders booked in Americas for the energy saving system SAVE, who is now getting more and more traction. And it differentiates us from other suppliers that we also have. Our digitalization becoming an increasing part of our offer. We have continued, of course, to book also in EMEA. For different reasons, we have not launched this in Asia and China since it's a key digitalization part of it. Radiance, EMEA. higher volume, positive seismic, efficient project delivers, and all this together has improved the profitability and shown a bounce back as to where we want to be. APEC orders generally weak. Solutions grew somewhat with the medium sized orders in China and in India. still not on a satisfactory level. America, as I hope, saw flat development in orders and sale versus Q1, but there is a solid order growth, including break for the Nerman SAVE system. Relocation of RoboVents, the company we acquired number one in welding in US, We are moving the whole operation, not a far distance. It's in the same vicinity of Detroit. And we expect this to be completing during this quarter. It will increase capacity and efficiency, definitely. But of course, there is a hard pressure on the staff doing this exercise during Q2. Other key activities has been the launch of the MCP air purification tower and it has generated a good interest from the market and we have already booked orders on that one. We have also started to get closer to the consultants by launching beam objects platform we have our pro quote system that helps us dimensioning the system and being more efficient another investment in digitalization and efficiency now we make it even easier for the consultants and architects to position our product in a facility by using beam objects. We believe that that will further strengthen our position as the preferred solution.