Nederman Holding AB (publ)

Welcome to the Netterman Holding Q3 2026 report presentation. For the first part of the presentation, participants will be in listen-only mode. During the questions and answers session, participants are able to ask questions by dialing pound key 5 on their telephone keypad. Now, I will hand the conference over to speakers CEO Sven Kristensen and CFO Matthew Cusick.

Good morning everyone and thank you for joining us today. We are here to present the Q3 report and hopefully we can give you some meat to the bone of that report. The positive order momentum we saw in the second quarter continued and was even strengthened during Q3. Order intake increased by roughly 12%, currency neutral, supported by strong inflow of small and medium sized orders, as well as a few larger strategic projects across all four divisions. This development is particularly encouraging as it reflects the work we do to broaden our position in new industry and potential new growth segments. Process technology had a particularly strong quarter with order intake up almost 32% currency neutral. It's a big bounce back from a period with the low order intake. Duct and filter technology also continued its positive development with higher order intake, sales and profitability. In extraction and filtration technology, order intake increased, supported by a stronger base business and also several larger orders. We're also seeing results from the investment we have made to strengthen our operational platform. We have invested significantly in manufacturing logistics in recent years, and we have a strong platform for improved margin as volume increase. The ongoing expansion and modernization of facility in Charlotte further strengthen our position in the North American market. Sales and profitability remained below last year, reflecting the weaker order intake at the very beginning of the year. But both improved compared with previous quarter. At the same time, cash flow was strong. During the quarter, we saw clear results from our continued efforts to expand into new industries and markets. that comes from defense pharmaceuticals in Europe to metal recycling in the US and semiconductors in Asia. Strategic orders showing how we use proven and acquired competence and technologies to enter new markets and creating growth opportunities. Overall, Q3 strengthens my confidence in the direction of the company. With the order growth seen in recent quarters, a solid order backlog and a pipeline that continues to look promising, we see good prospects for volumes and consequently profitability to increase as the year draws to a close. With that, I hand over to Matthew.

Thank you, Sven. And if we go through now a few of the key financials, Orders received as Sven mentioned a strong order orders received quarter in quarter three 11.8% up organically currency neutral versus the same quarter last year um those of you that can see the slides that are being presented there's a chart in the middle of this current slide where you can see definitely enough with the upwards trend is there um nice organic growth 147 million in organic growth in in this quarter uh alone year to date now currency neutral positive 3.4 percent is is also pleasing And there definitely seems to be a momentum on the market after this very slow January and February we saw at the start of the year. We've had seven basically very good months of order intake now. Highest quarterly sales so far this year as well in Q3. 1.7% currency neutral behind the same quarter last year. And again, as I mentioned, that's a result of the order intake, largely a result of the order intake being slow in the first quarter of the year. But definitely an upwards tick. You can see Again, the chart in the middle, it's heading in the right direction. And given the order intake that we had in this current quarter three, we're rather confident that that will continue the upwards trend in the fourth quarter as well. Moving on to profitability. It's the most profitable quarter of the year so far. We're still 131 million EBITDA is behind a very strong Q3 last year of 166 million. And not yet where we want to be. It's 9.2%. Operating profit is 104 million and earnings per share 1.68 kroner in the quarter. Not where we want to be, but again, expectation for the fourth quarter is uh is for the sales and therefore profitability will clearly increase again um and with the momentum the order momentum that we have right now we we are reasonably confident going into next year that we're not although it's uh that that is less clear how the forecasting there is less clear Cash flow and net debt, extremely good cash flow from operations in this quarter three. We have a tendency in the net demand group, it's just with the nature of our business that the cash flow picks up throughout the year, and it's very pleasing to see that the cash flow from operations has gone up. At the same time, we don't see that quite so much on this slide, but the level of investments that we've seen in the last two years, two and a half years in fixed assets has reduced somewhat. We're still finishing off some investments in the Charlotte premises and the facility there. But there will be a it will be not at the same levels as we've seen in the last couple of years that we have fixed asset investments that will generate cash and reduce the net debt we see the net debt has ticked down a little bit in the in the third quarter already here which is a clearly positive but further cash generation should be or is a clear target of ours and with the volume growth that we anticipate that will clearly happen. We can go through the four divisions now, Sven, and start with extraction and filtration technology.