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Nederman Holding AB, Sweden
COMPANY PROFILE
Nederman Holding AB, Sweden Profile
Nederman Holding AB produces a range of products and systems designed to maintain clean and safe working environments with a focus on air filtration. Its products provide solutions to manage dust, welding smoke, exhaust gases, oil mist, metal shavings and cutting fluids, as well as equipment for industrial cleaning. Since 2011 it has been organised into two operating segments, namely Europe, Middle East and Africa (EMEA), and International. Following its recent acquisition of Environmental Filtration Technologies (EFT), it will report in three segments from fiscal 2013 – EMEA, Asia-Pacific and Americas. It also recognises 22 business segments that it divides into four categories: metal fabrication, fibre-based industries, process industry & energy, and the automotive aftermarket. Analysis
Nederman saw its sales grow 13.6% in fiscal 2012 to SEK2272.6 million, although adjusted for currency effects, acquisitions and disposals the result translated to a 0.5% year-on-year decrease. Revenues from its EMEA segment were essentially flat at SEK1418.9 million, although there were major variations between individual markets. Nederman reported that Germany and the UK had performed well, but elsewhere sales were more challenging. In its International division revenues were up 10.2% on the year earlier at SEK643.7 million, equivalent to a 6.9% rise when adjusted. Again progress was mixed, with Chinese sales slower than expected, but more positive progress in South East Asia and Oceania. Nederman made three acquisitions during the year: Havak in Turkey, Lebon & Gimbrair in the Netherlands and EFT in the USA. The last of these was particularly significant and was reported as an operating segment for the year with a revenue contribution of SEK210 million following its acquisition in September. Nederman’s operating profit for the year was SEK175.6 million, up 25.0% on the year earlier, with the associated margin increasing from 7.0% to 7.7%. Excluding acquisition and restructuring costs, the operating profit was 14.9% up on the 2011 figure at SEK191.8 million, with the margin up slightly at 8.4%. Net profit for the year was up 35.2% at SEK117.1 million. New orders rose 10.2% to SEK2230.0 million, although this was a 2.1% fall when adjusted.
COMMENT Having successfully integrated Dantherm Filtration after its 2010 acquisition Nederman is now undertaking a similar exercise with EFT. The company believes its latest purchase fits neatly with a number of its strategic objectives. These include geographic expansion where EFT has significantly boosted Nederman’s presence in North America, as well as further strengthening it in other markets such as Australia, Germany and France. More widely, Nederman’s expansion efforts are targeted on growth markets such as China, India and Brazil, although as evidenced by its EFT acquisition it is also looking to expand elsewhere. EFT also helps with Nederman’s focus on developing new products and complete systems. For example, its range of consumable products such as replacement filters has strengthened Nederman’s position in the aftermarket. Another strategic aim Nederman believes will be aided by the EFT purchase is its efforts to improve its efficiency. The company believes the acquisition will boost its overall global purchasing power, while EFT will be boosted by being able to internally source products acquired from third parties. ■
Key Figures (SEK million) Nederman Holding AB
2009
2008
2272.6
2000.9
1694.1
1052.0
1272.3
1418.9 643.7 210.0
1416.8 584.1 n/a
1227.3 466.8 n/a
780.7 271.3 n/a
n/a n/a n/a
Cost of Goods Sold
1343.3
1170.8
996.3
545.6
654.5
929.3
830.1
697.8
506.4
617.8
19.6
25.4
19.7
16.7
17.2
R&D Expenses
2011
Year ended 31.12 2010
Net Sales Of Which: Europe, Middle East &Africa (EMEA) International Environmental Filtration Technologies Gross Profit
2012
Operating Profit Of Which: Europe, Middle East and Africa (EMEA) International Environmental Filtration Technologies
175.6
140.5
51.3
23.3
140.8
142.1 80.0 13.4
147.8 59.8 n/a
119.2 35.2 n/a
70.0 5.0 n/a
n/a n/a n/a
Profit before Taxes
152.8
107.8
26.9
17.2
125.6
Net Profit
117.1
86.8
21.1
14.6
92.6
Contact Details
Chair: President and CEO: Address:
88
Filtration Industry Analyst
Jan Svensson Sven Kristensson PO Box 602 SE-252 28 Helsingborg Sweden
Tel: +46 42 18 87 00 Web: www.nederman.com
April 2013
Nederman Holding AB, Sweden Profile
Nederman Holding AB produces a range of products and systems designed to maintain clean and safe working environments with a focus on air filtration. Its products provide solutions to manage dust, welding smoke, exhaust gases, oil mist, metal shavings and cutting fluids, as well as equipment for industrial cleaning. Since 2011 it has been organised into two operating segments, namely Europe, Middle East and Africa (EMEA), and International. Following its recent acquisition of Environmental Filtration Technologies (EFT), it will report in three segments from fiscal 2013 – EMEA, Asia-Pacific and Americas. It also recognises 22 business segments that it divides into four categories: metal fabrication, fibre-based industries, process industry & energy, and the automotive aftermarket. Analysis
Nederman saw its sales grow 13.6% in fiscal 2012 to SEK2272.6 million, although adjusted for currency effects, acquisitions and disposals the result translated to a 0.5% year-on-year decrease. Revenues from its EMEA segment were essentially flat at SEK1418.9 million, although there were major variations between individual markets. Nederman reported that Germany and the UK had performed well, but elsewhere sales were more challenging. In its International division revenues were up 10.2% on the year earlier at SEK643.7 million, equivalent to a 6.9% rise when adjusted. Again progress was mixed, with Chinese sales slower than expected, but more positive progress in South East Asia and Oceania. Nederman made three acquisitions during the year: Havak in Turkey, Lebon & Gimbrair in the Netherlands and EFT in the USA. The last of these was particularly significant and was reported as an operating segment for the year with a revenue contribution of SEK210 million following its acquisition in September. Nederman’s operating profit for the year was SEK175.6 million, up 25.0% on the year earlier, with the associated margin increasing from 7.0% to 7.7%. Excluding acquisition and restructuring costs, the operating profit was 14.9% up on the 2011 figure at SEK191.8 million, with the margin up slightly at 8.4%. Net profit for the year was up 35.2% at SEK117.1 million. New orders rose 10.2% to SEK2230.0 million, although this was a 2.1% fall when adjusted.
COMMENT Having successfully integrated Dantherm Filtration after its 2010 acquisition Nederman is now undertaking a similar exercise with EFT. The company believes its latest purchase fits neatly with a number of its strategic objectives. These include geographic expansion where EFT has significantly boosted Nederman’s presence in North America, as well as further strengthening it in other markets such as Australia, Germany and France. More widely, Nederman’s expansion efforts are targeted on growth markets such as China, India and Brazil, although as evidenced by its EFT acquisition it is also looking to expand elsewhere. EFT also helps with Nederman’s focus on developing new products and complete systems. For example, its range of consumable products such as replacement filters has strengthened Nederman’s position in the aftermarket. Another strategic aim Nederman believes will be aided by the EFT purchase is its efforts to improve its efficiency. The company believes the acquisition will boost its overall global purchasing power, while EFT will be boosted by being able to internally source products acquired from third parties. ■
Key Figures (SEK million) Nederman Holding AB
2009
2008
2272.6
2000.9
1694.1
1052.0
1272.3
1418.9 643.7 210.0
1416.8 584.1 n/a
1227.3 466.8 n/a
780.7 271.3 n/a
n/a n/a n/a
Cost of Goods Sold
1343.3
1170.8
996.3
545.6
654.5
929.3
830.1
697.8
506.4
617.8
19.6
25.4
19.7
16.7
17.2
R&D Expenses
2011
Year ended 31.12 2010
Net Sales Of Which: Europe, Middle East &Africa (EMEA) International Environmental Filtration Technologies Gross Profit
2012
Operating Profit Of Which: Europe, Middle East and Africa (EMEA) International Environmental Filtration Technologies
175.6
140.5
51.3
23.3
140.8
142.1 80.0 13.4
147.8 59.8 n/a
119.2 35.2 n/a
70.0 5.0 n/a
n/a n/a n/a
Profit before Taxes
152.8
107.8
26.9
17.2
125.6
Net Profit
117.1
86.8
21.1
14.6
92.6
Contact Details
Chair: President and CEO: Address:
88
Filtration Industry Analyst
Jan Svensson Sven Kristensson PO Box 602 SE-252 28 Helsingborg Sweden
Tel: +46 42 18 87 00 Web: www.nederman.com
April 2013