Nederman Holding AB (publ)

Good morning and welcome to Neroma Group's Q2 2025 report. We start with some headlines and we can say that we have continued good orders received. We have growth and strengthened market leadership in a number of areas. Q2 in short We have a very uncertain world. We all know that. We continue to advance our positions. We have shown organic and currency neutral growth in orders received and sales. Particularly strong has the development been in extraction and filtration technology division. We have a focused investment in innovation and in operational efficiency, and we have also strengthened the position as a leading player in industrial air filtration. Over to some key financials.

Exactly. So if we look at orders received for the quarter, as Sven mentioned, currency neutral growth, organic growth as well in orders received in the quarter. Currency neutral 8.4% of which 3.7% was organically. That took us to 1.425 billion Swedish kronor in orders received for the quarter. The charts at the bottom of the slide that you can see right now do demonstrate there is obviously a significant negative currency impact from That's almost exclusively down to the depreciation in the value of the US dollar. Nevertheless, the growth that we've generated ourselves by our acquisitions and organically did compensate for that on an orders received perspective. Onto sales for the quarter, particularly strong development of the largest division extraction and filtration technology had the best development of the four divisions in the quarter. We were for the group as a whole. We were at one point four three nine billion kroner. That is slightly behind the one point four six seven billion that we saw in quarter two last year. That is in its entirety, that reduction is in down to currency. The currency neutral growth, we were 5.3% up and organically 0.7% up. Not much more to say on sales. It is a particularly pleasing with extraction and filtration technology, which we'll come back to their profitability. Adjusted EBITDA was 159 million kroner. That was down from an extremely high at 188 million kroner in the same quarter last year. That gave us a margin of 11% for the quarter this year, 12.8% last year. There are a couple of items that we need to highlight when trying to help you analyse that decrease. So if those of you who were following us last year will remember, we actually made a profit on the sale of a premises down in Germany of between six and seven million kroner. That was reported and included in the profit of 188 that you saw for Q2 last year. The second factor is the rapid depreciation in the value of the US dollar has impacted us negatively by 18 million on an EBITDA level in the quarter. That is rather extreme, particularly considering our flows into the US from abroad are relatively limited. Profit after tax was 69 million Krona, 97 million last year, and that means earnings per share 1.97 versus 2.77 last year. Adjusted a beta up a little bit from quarter one, as you can see in the chart at the bottom there. Moving on to the cash flow and net debt, we had a good cash flow from operations in the quarter. Q1 was relatively slow from a cash flow perspective. When looking at cash flow, you must always remember it depends on where the starting point is. Your cash flow in any year is based on the working capital position at the end of the previous year. So on a rolling four basis, we're still over 500 million kroner in cash flow, positive cash flow from operations. The quarter was 59 million positive. When we're looking at net debt, it looks like we can see there's quite an increase there. 1.589 billion was where we were at the end of Q2 last year. Now we're over 2 billion. The acquisition of EuroEquip, obviously, that was approximately 135 million kroner and we paid a dividend of 140 million plus in the quarter as well. Then the final element of the increase in net debt is our favourite international financial reporting standard IFRS 16 relating to leasing, which the growth in the turquoise bar on the bottom part of the bar on the bottom right of this slide, that's versus quarter quarter two last year. That's related to the new lease for the premises here in Helsingborg, where we are now sitting. But Nevertheless, net debt has increased somewhat. We'll come back to some of the investments that we have been making that obviously are connected to that debt. If we go division by division, Sven, then extraction and filtration technology.

yes extraction filtration technology we have some short comments on the development during the quarter it's the second consecutive quarter with the record order intake which is quite pleasing we are taking a good position in the market we had a strong base business um There were some larger orders roughly in line with the Q2 last year. There has been a significant growth of mid-size solutions orders and increased sales has of course followed by the good order intake in the first quarter of the year. We have had a good EBITDA despite the very negative currency effect we've seen. We have also seen growing order backlog and that support the sales for the coming quarter here. We start with the different regions. In Europe we saw orders received and sales grow. Highest orders mainly from a solid base business, not a lot of large orders. There was one in Holland, a major European defense order. America saw record high orders received. There was a number of major orders booked and a strong base business continued. What is interesting here is that we have been able to direct some of our sales sources and our activities to in call it new industries it's not completely new it's the same technology it's the same but we have entered more into food related energy etc with the same technology as we have thereby compensated for the very slow demand for instance in the automotive industry welding etc In Asia, we had a slight decrease, but Australia continued to develop well with all the secure info, for example, defense. But also here, we go outside the normal path, welding, wood, et cetera, and being able to use our knowledge as a cleaner company. The key activities has been partner royal event in Helsingborg. We are now using the facility here, showing the innovation center, showing the experience center. We had 90 global partners present here in Helsingborg in our own premises. And I would say it was a very good event voting well for the future and the enthusiasm that we could beat up with these some new but very many traditional old partners for us. We also launched the Fume Eliminator Go Max. It's a new highly effective welding fume extractor. And we also presented the flow of new products that are in the pipeline. Common for all of these is that it's a focus not only on efficiency, etc. It is very much better energy usage which is important in these states. We have also launched a streamlined modular hood system for containment capture of weld fumes and dust. We also participated in the Ligna trade fair in Hannover. We had a full range of dust collection systems and energy saving technology, and especially the digital system Nederman Save got appreciation and headlines for our ability to save energy in our systems.