Nederman Holding AB (publ)

Thank you and good morning everyone. We are here to present the Nedermann Group Q3 in 2024. And the headline we have had high level of activity and good orders received especially in three out of four divisions. If we look at some of the highlights we have continued investments in a more challenging market. We have a continuous strong focus on operational efficiency and the high rate of innovation that operational efficiency will see. We have now taken over the new manufacturing and logistics site in Helsingborg and they are moving in and it will take a few months more. We have also taking first part of the Thomasville with Northrup now in the duct and filter. And we are continuing to build further warehousing and manufacturing for the heavy duty side of it. And we had a very good inauguration ceremony in Chesterfield, US, close to Detroit for Robben, where we also now have the possibility to work in a more efficient way. We have also launched a number of new products and systems. So what we see is that we are advancing our position in a weaker market. We had good orders. We had organic and currency-neutral order intake growth in three out of four divisions. and we continue to get orders for near my new target industries. We consider, under the circumstances, having a solid profitability and we had a strong cash flow. And again, we made a smaller acquisition of dual wire technologies, and it gives us a complement with new solutions combining traditional airman robovent solutions to new sectors such as defense, aeronautics, etc.

If we go on to the key financials now and on to slide four, orders received, as Sven mentioned, three of our four divisions saw organic and currency neutral growth during quarter three. Orders for the quarter, 1.437 billion kronor versus 1.488 billion in quarter three last year. If you look at the charts, if you see the chart on slide four directly below that, you can see there's quite a large currency impact during negative during the quarter versus quarter three last year. The Swedish kronor, among other things, appreciated approximately 5% versus the US dollar last During quarter three this year, in the same quarter last year, it was actually sliding. So that makes quite a big impact. Organic growth in three or four divisions. The other three didn't quite compensate for the drop in process technology, which we'll come back to. Orders received now on a rolling four quarter basis on around six billion kroner. For the year to date, order intake is now 4.3%. 7 billion krona versus 4.538 at this point last year as currency neutral 2.9 down um again it's the process technology division with the large projects that is the main reason behind that if you look at sales um a couple of uh lower sales in the quarter versus q3 of last year that that must be said We had fewer major orders at the start of the quarter. We received quite a few towards the end. Those did not then materialize into sales in time to be booked in quarter three. And obviously, process technologies, we know, have fewer large projects in their backlog right now. We'll come back to backlog for that division. Sales for the quarter, 1.416 billion kroner versus 1.574, very strong comparative figures last year. Currency neutral growth minus 6.8%. Again, we see a currency impact of minus 52 million in the quarter versus the same quarter last year. Year-to-date sales, 4.28 billion. Corona versus 4.687 billion by the end of September 2023. Currency neutral at 7.8% down. Once more, that is largely processed technology division. We have some acquisition growth. It's a relatively small percentage of our overall sales, approximately 1% contribution from acquisitions this year. Profitability was solid and our margins improved, adjusted a bit to 161 million Swedish kronor versus 175 million in the quarter last year. That gave us an EBITDA margin of 11.4% versus up from 11.1% in Q3 2023. Profit after tax, 70 million Swedish kronor, which gives earnings per share of 2.00 kronor versus 2.43 in Q3 last year. For the year to date now, we're on 523 million Swedish kronor in adjusted EBITDA versus 543. at the year after nine months of last year. That's a margin of 12.2%, so that's up 0.6% versus the 11.6% last year. Profit after tax, 258 million, gives an earnings per share of 7.34 kroner, which is slightly below the 7.51 that we were at at this point last year as well. Cash flow, Sven already mentioned a strong cash flow. This is very important for us that we continue with this. It enables the investments in these growth enhancing activities that we have, the investments in the factories and the operations and the product development. Quarter three had cash flow from operations of 181 million kroner, which is up from 137 in quarter three last year. Year to date now, 351 million kroner in cash flow from operations is slightly down from the £364 million at this point last year. Net debt appears to have increased significantly. It must be pointed out in this £1.761 million that we now see in net debt that there's a significant increase in the IFRS 16 calculated debt. This is related to the new leases that we have entered into for both the for both the Helsingborg premises and the one in Chesterfield, Detroit, US for robovent, they impact the balance sheet significantly there. And if we look at net debt excluding RF-16, we're actually reduced clearly in the quarter. If we move on to the divisions and make a start with extraction and filtration technology, Sven.

Yep, extraction and filtration technology, Large customer bases, woodworking, metal industry, welding, etc. For those who do not remember. Some of the highlights is that we had the highest orders received for a single quarter currency adjusted, second only to Q3 2023. We have had strong growth in major orders, solid base business, and increased number of mid-size orders. The quarter ended with an all-time high order backlog, supporting good sales in the coming quarters. Something worth mentioning is that a lot of the orders came slightly later than we had expected. That means that we were not able to ship, not only because of storms, bushfires and other excuses, but also because some of the orders came in later in the quarter than may be expected. If you go a little bit for the division in the different regions, EMEA grew in orders received and in sales. There were a number of major orders secured through distributed channels, We had a better and a good level of mid-size order with something that has been a bit lacking over a period of time here where we've seen the hesitation of maybe smaller customers with activities maybe postponing some of the investment. We had the strongest ever quarterly order intake in America. We had six major orders. three of them in the welding and one in the woodworking. And as mentioned, we had some deliveries that were delayed because of Helene, but again, we will deliver them this quarter. So that's not a major issue, but it explains a little bit that we should have had a better sales figure APAC saw some recovering orders received. We had growth in Southeast Asia, Australia, but we do see remaining challenges in India and especially in China. We see weak sales in those regions. Another look at some of the key activities. We, as mentioned earlier, acquired Duerr. It's not a huge company. but it has active climate control, air filtration, and it's focused on US and Canada markets. It's a good complement to existing business where we are having the technology for on-tool extraction and at source. Here we have encapsulating climate control environment and this fits very well for especially the aerospace and for some of the defense industries. It's been integrated in the States organization mainly of Robovent and they have now started to quote and see at least one a week. So let's see how we can further develop that business. We did launch a new 8X mobile high vacuum series. It meets the latest standards on combustible dust environments. Again, we continue to launch with a steady pace new latest technology both for the hardware as well as we do with the digitalization. We did participate in the largest, I think it's the world's largest international woodworking fair. And that is, it was this year in Atlanta, and we had lots of success with our digital solution, our integrated particle measurement, integrating into our system. and we strengthen our position as the cleaner company also in the woodworking industry. We have taken access and we've got access to the new production and logistics facility in Helsingborg and they have started to move in and modernize the facility. What we will have is a continuous move during the coming month, and it should be ready in February next year. We have Robovent's new plant. It was an operation that had divided in, like in Helsingborg, in several old facilities. Now we have a fully operational new site with better efficiency for both logistics and manufacturing for the future.