Nederman Holding AB (publ)

Good morning and welcome to this session where we are presenting the Nerman interim report for Q1 2025. If we start with some summaries, we can say we had very strong orders received. Three or four divisions had solid order intake and two of them actually had record quarters in a very turbulent time. We continue to advance our positions in a number of areas. We have an extremely challenging macro environment. We have finalized and are still building on some further investment in operational efficiency. We do have very high level in the newly inaugurated innovation center in Helsingborg. And we do have much better presence in structurally growing industries, which has been important in order to get a good order intake. And we also, during last quarter, finalized the acquisition of EuroEquip in Spain. And a few words about Euroequip. Why did we do it? It strengthens Nerman's process technology vision in foundry, metal recycling market, and as we say, hot air applications. It's a strong market position. They are selling equipment to foundries, metal recycling, and especially aluminum smelting markets. Nederman and Eurochip has a very long working relation where we have cooperated for decades. It gives us a sales structure and a support structure in the Iberian Peninsula and parts of Latin America. They have a headquarter in Lesama, a north part of Spain, Basque country. And we paid about €50 million for a company that has a turnover of €22 million last year.

If I move on to some key financials for the Nehr Demand Group for the quarter then. As Sven mentioned already, orders received was rather strong, just over 1.5 billion Swedish kronor, a very small reduction versus a strong quarter one last year as well. It is the first quarter since Q1 last year where we've been over 1.5 billion in order intake for the group. So we're generally satisfied. And this is with obviously only three of the four divisions having a strong position. Currency neutral, we were down slightly, still 1.8% versus Q1 last year, organically minus 3%. Then if we move on to the sales, Currency neutral, I had to check my calculations to correct, but it was exactly 0.0% change versus last year. 1.4%. 0.06 billion Krone versus 1.397 billion in the same quarter last year. That's obviously lower as we were flagging already after Q4 that we were entering the year with a lower order backlog than we had 12 months previously. What is positive for us, of course, is we've built up a backlog of approximately 95 million Swedish kronor in the quarter. So that bodes slightly better looking forwards. When it comes to profitability, ultimately, EBITDA was down by 31 million kroner to 143 million versus 174 last year. There are some one-off effects that impact the result quite significantly that we ought to flag there. We mentioned already in Q1 last year, there was a comparative figure boost um q1 last year was boosted by 11 million which was a pure accounting booking relating to a subsidiary liquidation that we did uh um if we completed in quarter one last year the impact of uh swede strengthening swedish kroner as well and the rapid depreciation of the us dollar particularly at the end of the quarter also made a big impact so approximately 20 million of of impact that that hits comparability we also a little bit further down the the income statement have uh obviously some acquisition expenses we did a full thorough due diligence in relation to euro equip and that that's been expensed now so that there's nothing we apologize for although it does ultimately impact earnings per share earnings per share in the end ended up on 1.69 kroner versus 2.57 kroner per share in the very strong quarter one last year Moving on to the cash flow and net debt. EuroEquip, obviously, an acquisition for almost 150 million Swedish kronor has an impact on cash flow. We acquired them just prior to the end of the quarter. So we have the debt on the balance sheet, but very little income from them yet. That will obviously change going forwards. Cash flow from operations in the quarter was positive, 15 million, which is down significantly versus last year. The main reason behind that is the reduced order intake in process technology. Large orders in the process technology division on receipt of them, we typically see large down payments from customers as well. A lack of those has impacted the cash flow from operations somewhat. Other working capital has remained rather constant in terms of inventory and receivables and such. When we move on to net debt, I've given the figures including, you see the chart including and excluding IFRS 16. The impact of the leases on these two premises that we entered into last year is quite significant. You see the turquoise on the charts there. But net debt, nevertheless, excluding R4S16, has increased by approximately 130, 140 million kroner versus 12 months previously. During that time, we have acquired Euroequip, Duroair and Olli Semmel as well in Denmark. So three acquisitions there obviously making an impact. on the net debt um that's a brief summary of the financials for the group as a whole if we move then on to the divisions that Sven and start with extraction and filtration technology first yeah extraction and filtration technology um during the quarter we saw the strongest ever

orders received which is a good thing it was boosted by in major orders and it was particularly strong in america in contrary to what we will see in process technology We also have been working with highlighting that for a long time, the aftermarket and service and we have here in the quarter double TD growth also for the service segment, which is important. We did have a much lower order backlog moving into this year. And that means that sales are lagging behind the comparative quarter. eight out of ten major orders were in us as i mentioned before they are doing well in welding wood defense and green energy ev batteries etc we are now also further negotiating to exchange some asian filter supply to either batteries in u.s when they realize that they are not compliant and not working very well. We'll see how that comes out. EMEA saw stable order flow during the quarter and there was a solid base business. APEC noted a slight slowdown, but we grew a little bit versus last year's Q1. And if we talk about the attitudes, it's quite interesting. It seems like Germany are getting more, they're getting a backbone now and starting to talk about future instead of being over depressed. So we'll see what that will lead to during the rest of the year. The key activities relocation of production in Helsingborg was completing and we had February 11 full inauguration. We have also seen that when we look at the tariffs and so on, division has a very significant manufacturing presence in the US. The vast majority of materials are sourced in the US and we will of course continue to monitor the effect of the changing tariffs. roughly 85 percent of the content is america origin for this division in u.s of course for on the financials for extraction and filtration technology orders received obviously a strong increase 10.7 versus last year up to 684 million krona versus 615 616 sorry last year sales