Nederman Holding AB (publ)

Good morning and welcome to this conference call regarding Nerman Group Q4 2025. interesting year and what we can conclude in Q4 is that we had higher orders received and a stronger business. We have during this challenging period continued to strengthen our leading position and we are working with market leadership, technical leadership, commercial leadership and operational leadership that our focus during this period. If you look at Q4 we had good organic growth if you consider it on currency neutral basis. We also had a currency neutral growth in sales and we believe that is very positive given the market conditions. We have delivered good cash flow and we have continued to invest in operations and also in R&D and these investments have provided a very solid basis for the future. We will have higher margins and better efficiency when they regain some momentum in the market.

If I look at some of the key financials now, orders received grew currency neutral in both Q4 and the full year. It's very hard. And some of you who've listened to a number of these hearings already in this year end season might be tired of hearing about currency neutral and currency effects. But it's really very important to take this into account when analysing the numbers. We sales as orders received the Q4 1.38 billion versus 1.4 slightly over 1.4 billion last year. So on the face of it, that looks like a decrease. However, organic growth was 4.7% in the quarter, currency neutral, including some of the couple of acquisitions from Euro equipped that we acquired back in March of 2025 and some from last year. leaves us at 7.3 percent unfortunately currency effect on orders received and actually on sales in the quarter was over nine percent um for the full year 5.55 uh billion was the full order intake that's growth currency neutral of 1.5 percent slightly negative organically minus 1.3 and uh still obviously for the full year a clear currency impact On the sales side, again, currency neutral growth for both Q4 and the full year. Just over 1.4 billion in sales in the fourth quarter versus a very strong Q4 of 2024. It must be pointed out 1.62 billion was very high for the narrowing group. Currency neutral, that's 1.3% up in the quarter. For the full year, 5.78 billion kroner versus 5.9 billion kroner. last year, 2024, three and a half percent up currency neutral. So we see in these market conditions and the current investment appetite that three and a half percent currency neutral growth is rather strong. Profit wise, like Sven mentioned, these investments that we've done in our operations have improved the underlying profitability. releases of new products we has boosted sales in uh for example pro uh process technologies aftermarket um adjusted the beta for the quarter four 159 million versus 185 million for quarter four 2024 that's uh that's a drop of uh 26 million 22 million currency effect in the quarter please take that into account when analyzing this that The 159 million leaves a margin of 10.6%. Earnings per share is 186, therefore, versus 249 in Q4 last year. Full year, adjusted EBITDA, 627 million versus 708. EBITDA margin, 10.8 versus 12%. And the earnings per share, 7.8 versus 983. When looking at the full year results, we had a currency impact on a beta of approximately slightly under 70 million kroner. u.s tariffs were approaching 15 million for for the group as a whole and then we did have a couple of one-offs you remember in 2024 related to a property sale and a company sale in china the sum of those is just under 100 million so when comparing 708 to 627 million for the full year please take that into account cash flow good cash flow in the fourth quarter very very good cash flow actually in q4 of 2025 not quite as good as the cash flow in the the I think that was an all-time high for one quarter cash flow in an air demand group in Q4 2024. For the full year, £382 million. Again, rather strong. This is important that we maintain a good cash flow. This has funded a lot of the investments that we've been making in our operations. We can see that on the right-hand side of this slide, that net debt has decreased over the past two quarters, although it is higher than it was 12 months ago. We've made significant investments in our operations. We've also acquired a new company and paid out a dividend during the year, of course. If we go right, try and break things down on how the business is going division by division, then send and start with extraction and filtration technology.

Yes. Extraction filtration technology Q4. We had more. large orders both in Americas and EMEA and that gave an increased order intake versus last year. We grew sales in Q4, currency neutral, we definitely improved operational efficiency and that was driving profitability and the Fulia EBITDA was up 10 million and if you would consider it the currency neutral close to 50 million which is a strong performance in a very challenging market. For the regions EMEA we had increased order receive we had major solutions orders and we are growing our aftermarket business which has been on the strategic agenda for several years. we had two very big orders in belgium for welding and one in sweden operate the nuclear industry in america we had actually double digit growth in order and sales there were several larger orders several of them came from defense and aerospace industry where we have good solutions and our um concept of clean air optimized with the energy savings and logarithmic cetera has given us some success here. Then we have the orphan APAC. One major order was secured to aerospace, a strategic and prestige order. But overall, we are not doing a very strong performance in Asia. Both orders and sales dropped significantly. Key activities during POE has been preparation to modernize the facility in Charlotte. It will further strengthen US supply chain and operational capacity. It will shorten lead times, which is one of the biggest advances, but it will also take away over time some tariffs and other challenges. Continued investment in the new innovation center in Helsingborg is ongoing and we have a fully booked innovation center for the full year 2026 and we will also see new products and solutions coming out of that. Testing and validation of current and next generation products in the innovation center is ahead of new launches.