Good morning and welcome to this conference call regarding Nederman Group Q4 2025. It's been an interesting year and what we can conclude in Q4 is that we had higher orders received and a stronger business.

We have during these challenging period continued to strengthen our leading position and we are working with market leadership, technical leadership, commercial leadership, and operational leadership. That's 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 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 we 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 of hearings already in this year-end season might be tired of hearing about currency-neutral and currency effects, but it's it's really very important to take this into account when analyzing the numbers.

We sales orders received for Q4, 1.38 billion versus 1.4 slight straight slightly over 1.4 billion last year. 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 a couple of acquisitions from Euro-Equip that we acquired back in March of the 2025 and some from DU- DUO last year. That that leaves us at 7.3%.

Unfortunately, currency effect on orders received, and actually on sales in the quarter, was over 9%. For the full year, 5.55 billion was the full order intake.

That's growth, currency-neutral, of 1.5%, slightly negative organically, -1.3%, and 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.

One just over 1.4 billion in sales in the fourth quarter versus a very strong Q4 of 20 24, it must be pointed out, 1.62 billion was very high for the Nederman Group. Currency-neutral, that's 1.3% up in the year in the quarter, sorry.

For the full year, 5.78 billion kronor versus 5.9 billion last year 2024, 3.5% up currency-neutral. We see in the in these market with these market conditions and the current investment appetite that 3.5% currency-neutral growth is rather strong.

Profit-wise, like Sven mentioned, these investments that we've done in our operations have improved underlying profitability. The releases of new products has boosted sales in, for example, Process Technology's aftermarket.

Adjusted EBITA for the quarter four, 159 million versus 185 million for quarter four 2024. That's that's a drop of 26 million.

22 million currency effect in the quarter. Please take that into account when analyzing this.

The 159 million leaves a margin of 10.6%. Earnings per share is 1.86, therefore, versus 2.49 in Q4 last year.

Full year, adjusted EBITA 627 million versus 708. EBITA margin 10.8 versus 12%, and earnings per share 7.8 versus 9.83.

When looking at the full-year results, we had a currency impact on EBITA of approximately slightly under 70 million kronor. US tariffs were approaching 15 million for for the group as a whole.

Then we did have a couple of one-offs, you'll remember, in 2024 related to a property sale and a company sale in China. The sum of those is just under 100 million.

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 a 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 the Nederman Group in Q4 2024. For the full year, 382 million, again, rather strong.

This is important that we maintain a good cash flow. This is funded a lot of the investments that we've been making in in our operations.

We can see that on the second on the right-hand side of this slide that net debt has decreased for the 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 try and break things down on how the business is going division by division then, Sven, we'll start with Extraction & Filtration Technology.

Yes. Extraction & Filtration Technology, Q4, we had more large orders, both in Americas and EMEA, and that gave an increased ordering take versus last year.

We grew sales in Q4, currency-neutral. We definitely improved operational efficiency, and that was driving profitability.

The full-year EBITA was up 10 million and if you would consider it currency-neutral, close to 50 million, which is a strong performance in a very challenging market. For the regions, EMEA, we had increased orders received.

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 operating in nuclear industry.

In Americas, we had actually double-digit growth in order and sales. There was several larger orders.

Several of them came from defense and aerospace industry, where we have good solutions and our concept of clean air optimized with energy savings, logarithm, etc., 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.

Key activities during the period has been preparation to modernize the facility in Charlotte. It will further strengthen the US supply chain and operational capacity.

It will shorten lead times, which is one of the biggest advantages, but it will also take away over time some tariffs and other challenges. Continued investments in the new innovation center in Helsingborg is ongoing and we have a fully booked innovation center for the full year 2026.

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 in that.

When we look at the financials for E&FT division, orders received for the quarter, slightly irritatingly, 0.5 million below the same quarter last year, even at prevailing rates. Currency-neutral growth 7.9%, which is purely organic in the case of this division.

Sales, 686 million, left an adjusted EBITA of 96.4 million kronor, which is 14.1%. It's ahead of 20 Q4 2024 in both SEK and in percentages.

For the full year, EBITA up to 362 million kronor from 352, as Sven mentioned. Currency-neutral, that's 48 million up, the margin increasing 13.

up to 13.7%. Some more efficiency in the operations investments, for example, in the site in Helsingborg and in Marki have contributed to that.

If we move on to Process Technology then, Sven.

Yes. Process Technology, more dependent on larger projects and have had a challenging period, but the activity picked up towards the end of last quarter.

We had an currency-neutral order growth of 15%. We also had some sales increase versus Q4 '24.

We have had some positive contribution from Euro-Equip that we acquired end of first quarter last year, and they are integrated and doing a very good job working with the rest of the Nederman team. The service business continued to perform strong.

Customers are focused on maintaining compliance and ensuring efficiency of existing installations, and this is, of course, a result of the lower willingness to take large decision on larger investments. If we look at Textile & Fiber, there's still a very low investment appetite, and that goes for the global market as such.

There is still overcapacity globally in spinning mills and also in weaving mills, and that has a negative impact on our sales here. However, we're growing the service content.

The order intake did, however, increase slightly in Q4, meaning that we are taking market share, especially in India, where we have a very strong organization and some neighboring countries that we supply from there. When going to Foundry & Smelters, Euro-Equip supported an increased order intake.

It's very good addition to Spanish-speaking area. We had one large aluminum order in Australia, and some local production in India have enabled deliveries to several smaller foundry projects there.

That is something we have tried out to get inside the tariff barriers and also shorten lead times by using our strong capacity and capability in India and increase their scope by doing, under the supervision of our German expert team, doing FS filter, which of course is technical mumbo jumbo for you, but it's configured large for hot air application like foundries and smelters. This is something we will continue to further develop for the region to take a position in APAC.

Customized Solutions, orders received increased. It was boosted by large order in US from pharmaceutical industry.

Again, our service and aftermarket is developing well. Key activities has been the investments in upgrading test centers, upgrading buildings in Germany, including solar panels and energy-efficient heating.

We have continued positive trend for service and aftermarket business, and that includes our digital offerings, our continued strong demand for energy-efficient fan for textile. This is, again, the very large energy saving that you get from our newly developed high-tech fans for spinning, weaving industry.

We are soon selling our 1,000s new replacement fan for that.

Financials then for Process Technology: orders received, 384 million, is an increase from an albeit modest 368 million in Q4 last year, but nevertheless, currency-neutral growth 15%. Sales, a strong sales quarter for the division than the earlier quarters of the year, 456 million, resulted in an EBITA of 44 million kronor, 9.6%, which is quite good for this division.

It's below a very strong Q4 last year, 11.1%. That included concluding some very for this division high-margin projects then, but 9.6% is pleasing.

The mix with high levels of service business helps that. For the full year, adjusted EBITA 144.7 million is 8.8%.

It's down from 182% 182 million, which was 11. We move on to Duct & Filter Technology.

Yep. Duct & Filter, the development during the quarter, we had a declining ordering take.

There were significantly fewer major projects, particularly in the US. That has been very much linked to EV batteries, large investments that has flattened out.

We have also seen that there has been the same problem as PT for larger investments in smelters, foundries, etc., and we are dependent on getting those, wood industry, etc. Order activity, however, increased in EMEA.

Sales was impacted negatively by lower ordering earlier in Q3, but despite the low volumes, profit margin remained solid. If you look at Nordfab isolated, both orders received and sales decreased in the US, and that is a market that stands for almost 80% of division sales.

Work continued on two large projects in EV battery manufacturing, which generate further follow-up orders, but as mentioned earlier, it's drying up a little bit with the EV battery market in US. Nordfab Now is contributing to higher efficiency and profitability with a delivery reliability of 99.9% during the quarter.

We are the leading and first choice when they want to have secure deliveries, quick deliveries, and we have also now, which I will mention later, started with our hub in Texas in order to further strengthen our reach in the US market. If we go to Menardi, orders received in the US increased in Q4, and that was boosted by new major orders to US steel manufacturers that are facing a revival due to the tariff protection.

In EMEA, the trend remain stable. Again, the key activities have been new production and warehouse facility in Thomasville is completed and it's taken into operation.

Thailand and Australia have launched new stainless steel product for the food industry, and Nordfab EMEA launched improved high-vacuum bends and branch for easier installation. Warehouse center established in Dallas, Texas to strengthen Nordfab Now.

Nordfab Now is our concept of being able to have next-day deliveries. Amazon have spoiled people with a very quick deliveries, and we are now following that trend and we see good success in this new way of handling it, as mentioned, almost 100% delivery certainty.

Nordfab EU obtained EPD certification for galvanized and stainless steel product families.

Briefly on the financials for Duct & Filter Technology, orders received did drop 11% currency-neutral, as did sales. Sales at 179 million versus 229 million last year.

EBITA, 17.4%, up from 16.5% last year. It's down in absolute terms, but we see the efficiency from these investments we've made in the operations units around this division.

Able to maintain good levels of profitability. For the full year, 19.3% is the EBITA.

That's slightly down from 19.6% on, obviously, lower sales volumes. Monitoring & Control Technology then, Sven.

Yes. Monitoring & Control, the development during the quarter was that we had an increase in orders received and that was fueled by very strong performance by NEO Monitors in Asia.

It's a division that has most success in the Asian market. However, the weak orders received in Q3 led to a slightly lower sales in Q4.

We are focusing on the service business and we continue to perform well in growing that part of the business. We are also here linking our OLM, the reporting system, to our especially Gasmet projects and seen success when we can package these things.

Some segments, hydrogen, defense, are developing well. Geographically wise, we look at EMEA.

It was boringly straight. It was same basically as Q4.

First portable analyzers to defense customer in Germany and Switzerland has been delivered. We have also the certification process of Auburn's product line ongoing for European market, which, when that will be finalized, will give us access using also our Boston-manufactured products for especially particle emission measurement available for the European market.

In Asia, NEO Monitors saw strong ordering take. We have also come in a situation we have more direct sales to customers.

We are in more direct discussions with customers that strengthen our position. We have also increased the presence in APAC with small offices both in Korea and in Singapore.

In the Americas was the development rather weak, few orders to public sectors, that is customs duty and it's emergency service, educational institution, where Gasmet had had a very strong market with portable units. However, with the financial restrictions in the public sector, we've seen a decline here.

The exception is that the steel industry has been seen in Menardi is continuing to upgrade the old facilities, which has led to some new opportunities and orders. The key activities has been the launch of LG3 ICL.

That's a very prosaic name, only an engineer or a PhD in engineering can come up with that very market- friendly name, but it's there and it's an advanced laser gas analyzer for industrial application. The extension of Auburn's facility in Boston is completed.

It was inaugurated January 21, but it was taken into use slightly earlier than that. What it means is that we have straightened the product and logistic flow, we have now a test base and a more efficient operationally working in that factory as well.

We have also preparations underway to improve efficiency and increase production capacity at Gasmet, Finland, and we have attended some of the important shows in Asia to prove our willingness to be there and grow our market.

Financials for Monitoring & Control: 189 million in order intake was an increase of 10% currency-neutral. Sales, 205 million, is is below what was a very, very strong Q4 of 2024 at 241 million.

Currency-neutral, that's actually down 8%. Adjusted EBITA is 37 million kronor, which is 18%.

That's an improvement in margin versus the year the full-year average, we see we think or we are seeing some efficiency in the operations, these investments in NEO Monitors and Auburn starting to have an effect right away. For the full year, currency-neutral growth was 1% positive, sales 1% negative currency-neutral.

Then the adjusted EBITA 129 million versus 144 in 2024, that leaves a full-year margin of 16.7%. Sven, our outlook.

Yes. As for the last few years, and especially this year, the outlook is interesting, but the demand remains dampened in many industry.

There are some areas that are better than others. We have a growing service business and a very strong digital range enable us to assert ourselves well in the current turbulent market.

Following high activity in September, orders received continued to pick up in Q4, which, if it continues, would be very positive for development in the first half of 2026. At the same time, the market is dominated by considerable uncertainty, making it difficult to forecast a broader recovery in demand.

If it gains momentum, we are in a very good position to increase our margins. With a strong balance sheet, we are continuing to invest in operational efficiency, ongoing improvements to our offering, allowing us to continue to advance our position, irrespective of the market condition.

In the world with growing insight into the damage that poor air does to people, Nederman, with its leading industrial air filtration offering, has a key role to play and good possibility for continued growth.

Financial calendar: annual report will be released on the 17th of March this year, the interim report exactly a month later on the 17th of April for the Q1, Annual General Meeting on the 21st of April, where we expect the AGM to approve the proposed dividend of 4 kronor per share, that's unchanged versus 2024 level, Q2 report will be released on the 16th of July, and the Q3 report on the 21st of October this year. With that, we can open up, I think, for any questions that people listening may have for us.

Good morning, Sven. Good morning, Matthew.

Thank you for taking my questions. Good morning.

Firstly, I just want to dive into price and volume in the order book. Given that there are some tariff effects, how should we think about volume versus price in the organic growth that we see in the orders?

Let me think. That's a very good question.

If you're thinking in relation to tariffs, tariffs are not making a huge effect. The tariffs affect our costs by around 5 million SEK per quarter, right, give or take on current volume.

On sales prices, they don't affect things massively. Then when it comes to price, we're not seeing massive price movement in the market.

We're very careful not to get dragged into a race to the bottom. However, we're not increasing prices significantly.

I think when you look at this organic or currency-neutral growth, it is growth that you're looking at there is the simple answer.

Perfect. Thank you.

Just to continue a bit on the tariffs, have you experienced any shift in customers' willingness to pay this new set of prices? Have they sort of been more keen on evaluating local opportunities, or have they just sort of paused investment decisions?

What's your sense and your view?

This is, of course, not something that you can empirically prove, but the biggest effect during this year is that the uncertainty that has been generated is that a lot of American large project has been postponed. We are talking about several hundred million PT project that has been postponed, both in US and some also in Asia, due to the uncertainty of what are the rules here.

When it comes to other effects,

I could answer that maybe

to say.

When it comes to tariffs, we don't import an awful lot into the US. Certain parts of what we do has been impacted by this, but in the US, you have seen inflation, for example, in steel prices internally anyway, it's not that our costs are significantly different to any competitor.

In fact, we source approaching 90% of everything we sell in the US is sourced US anyway. We don't think that we're at a competitive disadvantage related to these tariffs.

Then, like you say, Sven, the investment appetite is the

Yeah. Then you have some awkward sort of more emotional feelings that some Canadian customers refuse to take the product from our US factory, we are now shipping directly from Europe

and

manufacturing in Europe. It has more to do with the emotional side of it than.

That is things that going on. It's more that you have an uncertain world and an animosity towards some.

EFT has more than 88, 5% local made in US, where we have some import is on MCT when it comes from our Norwegian and Helsinki, but that's where we see that. Otherwise, we have basically in all regions manufacturing for the local market.

Perfect. Very clear.

Thank you. Then I just want to go into the margin development in EFT.

Firstly, a bit curious on the improvement that we can see here. How much of this is an effect from the improvements made in, for example, the Helsingborg site?

There are clear improvements made. If we talk operational improvements, Sven, around 20, I think, we were talking.

We believe we've made operations improvements of around 20 million in total in E&FT division through. Then it's not exactly the same volumes that are going through, but we've definitely made clear operations improvements.

We've also seen a part of the profitability boost is that we have seen good growth in product sales or a higher proportion of product sales, which means we're filling our factory up even more with less, there's more Nederman content in everything we sell. Operations clearly helping, and 20 million is what we believe is the full-year effect for 2025.

We will continue to see effects of that. We are now also investing further in order to, as mentioned, in the Charlotte factory, insourcing more.

We will take less from our Polish factory, but the biggest advantage here will be that we are more competitive because we are shortening the lead time. This is actions we are going to use in other areas as well.

We're also looking how can we utilize our capabilities in, for instance, Thailand, because there are free trade agreements between Thailand, India, and some other areas. You have to play this game as well.

Generally speaking, and when you mention EFT, we will also say that the NEO Monitors efficiency program, where we have rebuilt and reorganized from a more prototype version of manufacturing to when we now have got some volumes, and we have also there significant improvements. Then we need some further volume.

We have also, for NEO and Gasmet, set up in Suzhou in China, where we now can service locally the equipment rather than shipping them across the globe to Norway and so on. That is also not saving so much of the cost saving, it's more attractiveness for the customers that we locally can handle their issues.

It was a long answer. It was slightly outside EFT, but I hope that it was okay.

Yes. Thank you, Sven.

Just a follow-up on sort of the short-term expectations, because I think you wrote something about the orders having quite a lot of solution and service in the order book for the division. Is that then perhaps a bit more of a negative effect for margins into Q1 if you just think short-term?

I I

probably not. I think that I think that the I think this My Our assessment is that the service will the service increase will continue to, or the service proportion will continue to be high, and that will counter any between the products and solutions there.

That's That's the

Then also remember, we are doing very well in our solutions with our superior We get better paid for our solutions because this clean air optimized, which include the energy-safe system, it include digital surveillance, it includes the good filters locally made, we have an attractive offer. The reason why we get larger orders and this special orders to defense and so on is that we have proven concepts.

We do not have to guess that it will work. We have done it.

We've been there. We've done it.

We got the winner's t-shirts before. That we see, especially in sensitive areas like aerospace, defense, where we have good, strong performance.

Great. That's a perfect segue into my next question because for several quarters, we've noticed that you've mentioned large orders from defense.

Do you have any sort of guestimate on how much of the order book or of sales that currently is towards the defense industry?

We don't have a completely accurate figure on that, I will do some research on that. I think we will note this because you're not the first person we've heard this question from.

I think in the Q1 report, we will try to have some level of estimation there. We should say about this defense, it's not in one particular region that we see this.

It's both Europe and the US, it's less so in APAC,

but

Europe and US is where we're seeing it, and it's different countries, some of the same customers, BAE, we've seen them in Europe, US, and US,

Northrop Grumman here. Yeah.

Big, and you can say that it's the same, it's aerospace, which we've been a long-term supplier to Airbus, etc., that now also goes into military aircraft. You have vehicles, where, for instance, our Robovent company in Detroit has been utterly dependent on the local regional automotive market, which has declined significantly, but we have exchanged that by using their American favorite technology in defense for welding applications, but also in food and other areas.

We have exchanged somewhat the customer base. You understand that what did they say, Ford Company, they had 130 billion in losses last year because they write off.

Their investment appetite is not enormous. We have changed the customer base.

Great. I have a follow-up question on this.

You're sort of answering it, but if you notice that you have sort of gained market share within this segment or having a sort of preferred supplier position, or if the growth that you're noting is mainly from the growing defense industry in general?

I think the preferred supplier one, you can say something. When you're with these customers, once you're in, you are kind of you are in.

It's not to say there's no competition whatsoever, but the likelihood of getting repeat orders is there, and we have seen that where, like I mentioned with BAE, for example, that it is happening in more than one country or on more than one project. This signals hopefully that there is some stickiness on this business going forwards.

Great. Then on the DFT division, expand also a bit on the organic order intake.

Is this mainly from it having larger US exposure, or what's your view of this?

They They They do have a large US exposure, it's around around it's around 80%, I think, US. Then And then they have, on top of that, they have a couple of they they were ver- very strong in EV battery investments, which were happening late last year, and actually in Q1 of of sorry, late 2024 and actually in Q1 of 2025, we were receiving orders there.

The The other part of the market, they do have quite a large chunk of exposure to to the wood industry still, which a lot

of

which is construction-related, which isn't super hot right now, but it it's obviously an very, very important industry and will continue to be. What we've seen in Duct & Filter, like we mentioned, is the the efficiency in the factory is clearly, clearly better, but they are they are they are lacking volume.

It cannot it cannot be denied.

As you say, the margin is positive, and it's mentioned that improved production and warehousing process in the US and Europe is a positive. Is this also a benefit from having a lower ratio of very large orders, or should this scale from current levels very well when also that activity of significant large orders comes back?

We have invested also in some more in the production for the larger ducting as well. Then you ought not to see a decline if we were to get more large orders, you ought not to see a decline.

In fact, with more volume, you'll have more absorption of overheads as well. We think this improvement is here to stay.

The improvement is definitely there to stay. The thing is, of course, we need to utilize the equipment and so on.

What you see is that we have been heavily impacted by EV batteries, where we had magnificent success over a years period when that market grew. Now we have to do the same as we did with Auburn, we need to find new attractive areas where we can supply.

We have to remember what we are doing is that We are efficient, and we are mostly used in combustible dust environment, because This is a specialty. It is very clean interior in the ductwork, and that is the importance here.

That's where we have. It's typically combustible dust in food, it is in EV batteries, it is in aluminum, wood, etc.

Great. I have just two more questions from my side.

The first one is on the Monitoring & Control Technology division that you mentioned, and you've mentioned that, I think, in the last quarter as well, that the conversion to new technologies amongst customers is taking a bit longer than expected and connecting this also to the geopolitical uncertainty. Could you maybe expand a bit on this?

Is it a type of customers that has shown this trend more clearly, or regions, as the US, or something else?

The main thing here and what has been that is the decline in the public sectors, that has had a strong impact. What we then have to do is, of course, focus a little bit more on other customers.

Again, like EFT has been doing, and so on. If our current customer base are reluctant to do the investments, we need to work harder with some other areas.

I think we are launching new products in US in Auburn, where we are cooperating between NEO and Auburn, and the combination here we can do better. We are working now with the Gasmet OLM on service and quick reporting response.

It been quite successful in this incineration business, where reporting is very important portion of it. We are building our sort of packaging it to be even more attractive, going slightly outside our current customer base in a controlled In

a high Yeah. Perfect.

Then my final question is on the capital expenditure, which is down year-over-year while you mention some initiatives in the report. What level of CapEx are you planning for during 2026, and is there differences in tangibles and intangibles?

For 2026, I think the rate of product development, which is the vast chunk of our intangibles, that will continue. We're not going to ease off on product development, digital or actually new filters, etc.

When it comes to fixed assets, what we can say on that, 2024 and 2025 were quite high years for fixed asset expenditure with a lot on a sort of longer-term investments in buildings in Helsingborg, the one in Robovent, the Nordfab ducting one in the USA as well. 2026, what are we doing on that front?

We're going to invest in the Charlotte plant to some extent. I think you can expect a drop in tangible fixed asset investments, although it will still be on a historically, if you went back five years, on a rather high level.

As things are now, we would expect this to drop in 2027 a little more because we believe we will have a manufacturing footprint that can handle significant growth without major further CapEx.

Great. Thank you for taking all of my questions.

I'll step back in line.

Thank you, Anna.

Thank you.

We thank you for taking your time listening on this first morning, and we'll be back for the Q1 report later in the year. Thank you very much, everyone.