Good morning, ladies and gentlemen, and welcome to this presentation of Q1 for Nederman. Our headline has been resilience in a volatile market because it's been an eventful quarter again and what we can see is that we are still strengthening our position in the world, although it remains very turbulent.

The first quarter we continued to advance our position in a very volatile market. There's high activity across all divisions, they're all having good pipelines, less good order intake, because we had lower orders received, although the activity picked up at the latter part of Q1 and continued here in April.

We'll see what that means. We are strengthening our presence in structurally growing industry, and by that we mean we are entering new fields like food, pharma and life science-related, etc., and resulting in a lower sales and EBIT or profit margin.

If I move on to some of the key financials then, if we go on to On orders received, as Sven mentioned, for the quarter as a whole orders received were weaker than the a very strong Q1 last year, it must be mentioned. Three of four divisions in Q1 last year I'll leave it at two of four divisions in Q1 last year had their record quarters for order intake.

I don't want to get into debate on currency rates. Like Sven mentioned, order activity clearly picked up, particularly during the second half of March.

Negative currency impact, that's something that you'll you any analyst listening will have heard and will be hearing from lots of companies. It's around 9% quarter on quarter for for us in Q1 this year.

Orders ultimately were 1.267 billion versus just over 1.5 billion Swedish krona Q1 last year. That's 6.7% down currency neutral, 9.2% organic.

The charts that we see on on this on this slide for orders received, you can see that basically half of the drop in order intake is currency-related. On the next slide, sales.

Lower than Q1 2025, I put a comment in there, in line with Q3 2025's order intake, which gives a little indication on the sort of lead times. It's not the same lead times across all four divisions, but 1.257 billion was approximately in line with Q3.

Again, currency impact -9% also on sales. Currency-neutral sales were down 2%, less of a drop than in on the order intake when it's purely looking comparative-wise, organically -5.5.

Profitability, these lower sales volumes and are apparent. We did have very strong gross profit margins.

Something that's quite pleasing is the increased productivity in our factories. We had rather good utilization in the factories in the E&FT division during Q1, which Sven can come back to.

Unfortunately, currencies also affect profitability. Approximately 12% 12 million krona of the drop in EBITA is pure currency effects, largely due to the US dollar, which was down quarter on quarter nearly 15% compared to Q1 last year.

Ultimately, what that meant was that the EBITA for Q1 was 117 million versus 143 million last year, the EBITA margin 9.3% versus 10.1%, earnings per share 1.31 krona versus 1.69 in Q1 last year. Cash flow, cash flow from operations very slightly negative It was a typical Quarter 1, I would say, in in in in a Nederman world.

It's it's typically what we see in Quarter 1 is that we've received some orders just before the year end, and we've received down payments on those orders and we start executing on those, the the working capital development is usually less favorable in the first quarter. We are still lacking some larger orders which for which we receive down payments.

Once those start coming in, that will boost the cash flow from operations rather well. On the net debt front, very little movement, we could say, since since the year end.

Division by division, Sven, we start with E&FT.

Yeah. Extraction & Filtration Technology here.

During the quarter, we had a bit lower orders received, and that was mainly due to very few larger orders in Americas where we could see a new hesitation to sign. However, the base business, as we call it, the traditional, the small projects, the ones that do not have to go to the boardroom, actually grew in the division.

There was a significant order intake growth for service as well since we have over the last few years put much effort in growing in especially European and the North American organization to have a strong service, which also prolonged the relation with our customers. Profit margins increased versus Q1, and that is due to operational efficiency.

We have been talking about the investments we've been doing not only in Helsingborg, we have a new factory set up in for Robovent brand in Detroit area. We are continuously upgrading now, and we come back to that, in Charlotte factory as well.

We had a decent capacity utilization in the factories, although there's plenty of room to grow that. Increased operational efficiency maintain our margins.

If we go to European market, we had a increase in orders received, and again, this was strong base business, mid-sized, small, mid-sized solution orders. Then there were three major orders, and that was to commercial aircraft manufacturing, defense, actually naval area, and wood products.

That what we see. If we look at Americas, as you have noted, the orders received were significantly behind Q1, which, in all fairness, was a record year, or a record quarter.

We've seen the hesitancy in US market to put the pen to the paper. One major order was, however, secured, and that was wind turbine manufacturing.

Base business grew, and again, several small, mid-sized orders, and again, service where we have focused over the last few year, as mentioned before, also in the US market grew. Currency-neutral sales growth with strong service business.

In Asia, lower orders received and sales, base business also weaker, and it's a challenging market environment. Some cost cautiousness has been taken in some of the Asian part of it.

Key activities, we continue to launch new products, as you probably have seen. Last year, we spent almost 3% on R&D, and we see how that pays off.

GoMax, I will not go into the details, but it was again we were again awarded a technological award and the reason or the how they formulate it was smart technology with energy efficiency and sustainable design. Continue investment in operations in North America.

We have started the further insourcing project in Charlotte for this division, and that will further lead to efficiencies in our supply chain and in a further step also more or less even less, even if it's very little that comes from outside US, 80-85% is local content in this division in US. We have launched new versions of the partner web shops, we continue our also our digital journey when it comes to being up-to-date.

When it comes to financials for E&FT division, orders received 578 million krona in the quarter is 8.6% down currency neutral, albeit from, Sven mentioned, a record quarter at that time. Q2 actually exceeded that, but this was a record at the time.

Sales 592 million krona, and an EBITA adjusted EBITA very nearly in line with the same period last year despite lower sales. This is a little bit what we're talking about in terms of resilience.

We've managed to keep the margin up, actually increase the margin in this division to 12.2% from 11.6% in Q1 2025. Moving on then to Process Technology, Sven.

Yes, Process Technology here, we have significant larger orders and projects, and it's glad to say that we actually had a order intake growth in the quarter. There were a few major orders secured, and again, a very strong aftermarket development with strong growth.

Again, we see the result of a few years of focused activities. Again, we got order backlog that increase, and if you remember our acquisition of Euroquip, they are giving a positive contribution, both orders, sales, and profitability, we are very pleased with that addition.

The three parts, we start with textile and fiber. Here we see the continuous overcapacity, but also a slight pick-up, maybe the textile segment has bottomed out, but I will not promise that, but we'll see, but it's been a couple of years with very low demand.

Again, we have the energy saving fans for textile plants, orders have reached record levels. We passed 1,000 units here during the quarter, and again, we show the capability of technical leadership and new development and helping our customer to save energy in a world where energy prices are soaring.

Foundry and smelters, we actually also here had organic growth in order intake. There was a very large order for copper recycling in US.

We have over the few years specialized in our technology to be and are the technology commercial leading partner when it comes to recycling of metals and materials. Again, positive impact from Euroquip, continued strong activity within the recycling.

However, there is sign that they are a bit slow to take the decisions, but for a mid- to long-term, recycling of metal will continue. The need of copper, the need of aluminium, we cannot have it on landfill, which is the case in US, in Asia.

In Europe we're quite good, especially on aluminium, where we have 80 to 90% recycled materials. Customized Solutions, stable development, new order on US pharmaceutical industry.

We are sort of moving in, as mentioned, to little bit new territory. We have been doing it before, but we are more focused now on finding pockets of growth in this environment.

We secured two projects in India, and that is a geographical expansion. We are using our strong footprint in India for the textile and fiber, and from that bridgehead, we are now increasing our capabilities and also taking in other areas from the division.

Service business continued to grow. Again, key activities, sales of energy-efficient carbon-bladed fans for textile plants exceeded 1,000 units, good milestone.

We continue to invest in test center upgrades and ongoing improvement to existing product lines, again, where we show with our innovation capability and where you can save energy and make your choice. Again, we are far ahead of competition when it comes to technology and integration of digital solutions.

Financials for Process Technology, order intake was 346 million in the year, which was, even at prevailing rates, a growth, currency neutral nearly 14% up. Euroquip part of this currency-neutral growth, but even organically, Sven mentioned, we've gone up there 2.9%.

Sales very slightly down to 320 or slightly down to 321 million krona, but adjusted EBITA is increasing 29 million krona is 9.1%. You see there the boost from the growing service business, for example, which has stronger margins, 9.1% on rather modest sales figures is what we see from Process Technology in Q1.

Duct & Filter Technology then, Sven.

Yes, Duct & Filter, here we've seen, and it's very much based on the US side where the majority of the sales come from, the development in the quarter, we had a bit of a decrease versus the record Q1. The year started very slowly, but it picked up later in the quarter.

Again, of course, based on this, there's very limited backlog, the sales decrease versus Q1 2025. We do deliver solid profitability with very good factory efficiency.

As you remember, we have now invested in the two parts of and fulfilled two parts of the manufacturing in Thomasville. We have automated, we have invested in new technology in both standard sizes and also in now inaugurated the XD, which is larger dimensions.

We see how that, despite the fact that the volumes are a little bit slow, can maintain good gross margins. Again, of course, massive negative currency effects since most of the business is in US dollars.

Nordfab, which is the ducting, we saw increased activity in March, and that was actually giving us organic growth for the quarter as a whole. Project within battery manufacturing made a significant contribution to the order intake, and that was very much so that EV battery factory are now converted into battery factories for storage, etc.

We see maybe some of that business is rebounding and coming back. EMEA orders received and sales increased slightly compared to last year's Q1.

Menardi, which is filter bags, had a very slow order intake, but saw slight recovery in March. EMEA performed well, but it's a much smaller portion of that subdivision.

Launch of BIM toolbar, US and Europe, launch of high duct Australia, Thailand, solar panel installation in Thomasville is providing significant reduced environmental impact and also cost impact. The sun is shining in North Carolina, significantly more than here in Helsingborg.

Continued investments in tools and equipment to enhance product quality and streamline manufacturing, and as you've seen, we are seeing positive effect of the automation in and the significant investments we have made in manufacturing and logistics. It's not only the manufacturing, it's also the set up with Nordfab now, which is giving us capability of balance and have more efficient manufacturing.

We have started the project where we have sub as where we have possibility to have shorter lead time, we have started opening in Texas, Dallas warehouse, we are only shipping the emergency part directly, the rest we take from a warehouse, and again, we have been able to have 100% delivery accuracy despite the hike in orders in late March. Very positive for the market, and we are getting new distributors who want to work with us.

Financials for Duct & Filter Technology, external order intake was 180 million in the quarter, down from the record Q1 last year, 224, that's 7.4% down currency neutral. Obviously, as Sven mentioned, the currency impact on this division is very high.

Sales 194 million down from 241, adjusted EBITA 37 million krona is 18.9%, and we think again this is showing resilience. Last year Q1 was 22.1%, which is the highest quarter for this division in all of history, but 18.9% still rather pleasing on somewhat more modest volume levels.

If we then move on to final division, Sven, Monitoring & Control Technology.

Yes, Monitoring & Control, here for the quarter, we had real decrease in orders, revenue was also decreasing, but there were very big variations between the different business units. Of course, on the low sales volume, the profitability was reduced.

If we look at NEO Monitors, the total order intake was slightly reduced there, and that was due to Asia that halted a bit in the quarter. We have seen growth in the US, and we have over years have seen significant growth for NEO Monitors in the US market, where we were very small player a few years ago.

By the investment in Houston, our sales office and service organization, which is now consisting of up to, if I remember correctly, 12 persons, have given us direct access to the petrochemical industry in the area. We also see that it leads to major orders, and we are deepening our cooperation with the large ones since we now are located with strong service team in the neighborhood.

The European orders and sales grew organically and they had a stable demand. We have significantly increased the production efficiency, all of the manufacturing, real manufacturing is going on in Oslo, and we have restructured from a small almost call it startup manufacturing site to an electronic assembly site that is much more efficient, much more quality, and that work is continuing.

Gasmet, the order intake reduced, and it was partly on a non-repeat major order, but it's also punishing the large dependence of public sectors like customs, police, universities, that is base business, and that has impacted, especially in US and Asia where there has been reduced spending in these sectors. We have also received new orders from new customers in Singapore and South Africa.

Auburn, based in outside Boston in Beverly, saw organic order intake growth. We could definitely see that the order intake picked up in March.

What that means going forward we don't know. We had slightly sales slightly behind the very strong Q1 last year, but the orders are coming back.

We have reviewed and updated the product portfolio, and that continue, and we are hereby getting the permits, the etc., and strengthen our platform for expansion in India, China, but we're also having other activities to go outside the US market that is dominant for Auburn's product. We have added product like PM 1 laser to upgrade, and that has given a new boost in interest on the US market, where we have a very strong position, but we want to also grow that in Asia and in Europe.

Our activities in Asia were halted, but we are restarting them. They were halted due to the difficulty to sell from US to China with 100% custom tariffs, which was the case in a period, but we are now restarting those activities.

Again, key activities, launch of PM laser, new technology for new application, particle monitoring. We have established sales offices in Korea and Singapore.

We have continuous improvement to existing product. We're also increasing the integration between Insight and OLSUM, and also here an increased awareness for Gasmet customers, and we are linking these products together.

Ongoing new product certifications, and that's partly what's needed to bring in larger volumes of our Auburn products to Europe. We're also doing preparation for capacity and efficiency investment in Gasmet facility in Finland, and that is linked to and similar to what we've been doing in Auburn and in NEO.

Financials for Monitoring & Control Technology, orders received were 163 million in the quarter, down from the record 249 million in Q1 last year. Remember in Q1 last year we had two orders in this division that alone combined almost reached 50 million krona, but nevertheless 28.5% down currency neutral.

Sales 168 million versus 198, that's down 8.2%. The We see the impact of the margin on on the on the on the margin of the volume drop on this division, adjusted EBITA 20% 20 million krona is 12.1% versus 18% last year.

If we move on then, Sven, to the outlook.

Yes, demand remains subdued in many sectors, but the growing service segment and a very strong digital offering mean that we are performing very well in the current uncertain market. Following a very weak start, activity picked up towards the end of the first quarter, which, if continuous, will bode well for performance in the quarters ahead of the year.

The pipelines are strong, but order intake is low. At the same time, there's considerable uncertainty in the market, very difficult to forecast broader recovery in demand.

However, when that gains momentum, we are extremely well-placed to improve our profitability. With a strong balance sheet, we continue to invest in operational efficiency and in continuously improving our offering.

That means that we will be able to continue to strengthen our position regardless of the market situation. In a world where awareness of the damage that poor air quality does to people is growing, Nederman, with its leading offering in industrial air filtration, has an important role to play and a good opportunity to continue to grow.

Briefly on the financial calendar then, we've got our Annual General Meeting next Tuesday at 4:00 p.m. The interim report for Q2 is released on the 16th of July, and the Q3 is released on the 21st of October.

The year-end report will be released on the 12th of February next year. With that, I think we can open up for any questions that people listening may have for us.

Good morning, everyone. Two questions from my side, please.

To start off with, you mentioned that activity picked up towards the end of Q1. Could you give some more color on what drove that improvement in the final weeks of March and whether it was broad-based or more concentrated in terms of both divisions and regions?

I can say across the divisions it was rather widespread. Process Technology is more volatile, as August, their large orders come in when the board decision happens, the large projects come in, but we did see in Monitoring & Control Technology, in E&FT, and in Duct & Filter, we definitely saw a pick-up in So it was rather broad-ranged.

Regional-wise, not so much of a I there's no region that sticks out one way or the other in that APAC is still slower, and we think that is likely to do with what's going on in It can have something to do with what's going on in the Middle East right now.

Thank you very much. That's very clear.

On tariffs then, I know you guided to approximately 5 million Swedish krona in quarterly tariff costs going forward. Could you perhaps elaborate a little bit more on products or shipments that primarily relates to now given the fact we had an updated here Section 2 232 on steel-based products?

That may benefit us. We are also and this we're not doing this in order to So that first of all, that will likely benefit us somewhat, assuming we don't change anything in our production flows.

On the other hand, we're also investing in the production in the US in Charlotte, which will mean that slightly less is spent transatlantic. This is still rather small impact for us.

It's not we're not changing anything strategically based on the tariff.

No.

We will not do for foreseeable future either.

All right. Thank you very much.

Thank you, August.

Hi, good morning, and thank you for taking my questions as well. Firstly, I just want to ask because I know that the number of employees is down, could you maybe elaborate a bit on this?

Is it relating to cost savings, or an effect from something else?

Number of employees is largely related to production sites. It's not There are we have made some cost savings in APAC, but that's relatively small relative to the number of the relative to the number reduction.

There are We do have some temporary employees that are float that fluctuate over time, and at the moment, obviously with less volume, we are able to adjust the production capacity accordingly. It's not something a major restructuring that you're seeing there or a major focused reduction.

You also have the fact that with the automation in the different factories, here and there you have two less needed because you have it automated with AGVs, you have two less there and so on, so that's an ongoing process. It's not we have not seen the need for a larger restructuring.

Perfect. Thank you.

My second question is on how if you maybe could give some details on how we should view the Duct & Filtration Technology margin just given that we probably have a lot of FX effects, maybe some sort of guidance on how that specific margin would look if we didn't have the effect US dollar?

The Duct & the margin in itself in percentage terms isn't massively affected for that division, cuz the vast majority of what

they're So

there's not an awful lot that's going transatlantically. The Swedish krona is is when we translate is the main issue with that division.

We are margin-wise on that division, like I mentioned, we're rather pleased with the 18.9% they do, and that does show that, for example, these where we've introduced these AGVs into the factories and a little more automation, we have seen a reduction in the direct labor percentages for that division, which is making even on modest volumes, we're quite We've got rather good volume We've got rather good margins. Some volume increase ought to give even more leverage in that division.

Perfect. Then also a specific question for Gasmet, just thinking now when public spending seems to go down quite a lot, are there any specific customer segments that you would try to increase your sales efforts towards?

They have a handful they are but it's mainly to start more having broader geographical base for the existing, because that is something ongoing. They have a growing cooperation with OLSUM, and hereby also increase their aftermarket capabilities in that area, it's energy and it's APAC that we need to further grow.

It's also a problem, we don't know what will happen in the US spending, because that is a significant part of it. That has been universities, other school, it's been customs authorities, police and so on, and their spending has gone down dramatically over the last 6 months, I would say.

I think we will I can't give you a promise that it will be a boom within the couple of weeks, but we are working very strongly to find as we have been doing in other areas. If you look at EFT, for instance, when we acquired Robovent, 85% of their sales were auto-related, and the downturn in that market would have given us a significant downturn in other sales, but by using the knowledge in using this applications in food-related, other areas, we have now been able to maintain the volumes there, although both you and I would have liked it to be icing on the cake that we grew it and still had a significant auto part.

Now we see that maybe the auto industry is starting to reinvest again. We see that there's a lot of service orders coming in, and that's the first sign that they are reopening the lines.

Perfect. Just two more from my side.

Firstly, looking on the product mix that you have in the order intake, is there something that we should be aware of in terms of margin impact for the quarters ahead?

Not really. You could say if I take Process Technology, they're still doing very well on service, so that we expect their rather good margins will continue to be solid.

E&FT a little bit growing in the service business as well, so that's all that also helps. Monitoring & Control Technology, one of the issues we have there and well why we were a bit lower is some of this public spending is on these portables, these portable units, which do have extremely good margins, so that is less solid.

I would say Process Technology and E&FT have got healthier margin backlogs than they had 12 months ago, albeit lower in absolute numbers.

Perfect. My final one is Yeah,

go ahead.

If you could also

Duct & Filter has also very since we, as mentioned, we have very low portion of personnel costs, it's extremely low, and that is several percentage units down since we made the investments over the last few years, so that means that an increase in volume or a recovery in volumes will have also in that division very strong impact. Even a modest increase across the group in volumes will should increase the margin quite significantly, we think.

Perfect. Just the final one is if you could tell us a bit on if you've noticed any impact yet from the Middle Eastern conflict in either cost, but also perhaps activity from the oil and gas customer?

You mentioned one order, but that doesn't need to be related to this.

The impact is very hard, because the biggest impact is the hesitation and what we've seen, the hesitation to sign larger contracts, and it's the same as when we had what they call Liberation Day. It's not the tariffs as such, it's more the unsecurity among our customers, and that means that they are sort of holding back on doing the large investments.

Parts of the problems in or the overcapacity in textile and fiber is related to the uncertainty also how can you ship things over the ocean and what is happening and where should you invest? Should you invest in Carolinas, Guatemala, or should you continue to do in India and so on?

It's more the uncertainty that has an impact. Then there is, of course, potentially an issue, as we had during COVID period, on shipment capacity and so on if we get vessels stuck around in Hormuz Sound, Hormuz Strait, and or in Suez or wherever.

I wouldn't say

I'd try and pull out one positive out of the Iran conflict might be and we have and, like you say, we haven't seen this at all yet, and you may be hinting at this, Anna, if this drives investments in oil and gas, petrochemicals, or anything around the world, new investments if cuz if countries decide themselves they need to invest themselves more, that could mean a macro boost for those sort of industries, which would be good for, for example, for NEO Monitors, Gasmet in particular. We've not seen it yet, but that would be if I'm going to pull one positive out of it.

There are, like at the moment, this hesitation is the key issue for us though. As you say, Sven, it's the investment hesitation.

You've not you have yet to see actual cost increases for you that you need to offset towards customers, that hasn't

There has been some. There is some, of course, that will come on plastics and so on, and polymer.

Steel has gone up a little bit due to the energy cost and so on, and they are seeing some increase. That is so straightforward, so that you can handle and you can make and this is, if you go on a plane, you will see on your ticket we have added a surplus for energy cost and so on, and that's not a big issue to handle.

It's more the uncertainty and the lack of volumes that is problematic.

Perfect. Thank you so much.

Thank you, Anna.

Thank you for taking the time listening to us, and we will have the annual AGM meeting on Tuesday, and we will have short comments from that as well next week. After that, we will be back for the second quarter in July.

Thank you for taking the time. Ladies and gentlemen, the conference has now concluded and you may disconnect your telephone.

Thank you for joining and have a pleasant day.