Nederman Annual Report 2007
0 2005 100 200 300 400 500 600
2006 2007
511 528 568
0 20 40 60 80 100
%
2005 2006 2007 64%
44%
32%
MSEK
2005 2006 2007
808 878
1041
0 200 400 600 800 1000 1200
2005 2006 2007
684 743
866
123 135 175
0 200 400 600 800 1000
Extraction & Filter Systems Hose & Cable Reels
MSEK
2005 2006 2007
63 85
114
0 20 40 60 80 100 120
0 20 40 60 80 100
2005 2006 2007 58
MSEK
71 88
Contents
1 2007 in summary 2 CEO Sven Kristensson 4 Our business concept 5 Solutions for a cleaner environment and a more effective production 6 References 8 Market forces
10 Sustainable development 11 Internal environmental work 12 Personnel, ethics and training 13 Product development 14 Manufacturing and logistics 15 Customer segments 16 Sales channels 17 Total solutions 18 Business Area
Extraction & Filter Systems 19 Business Area
Hose & Cable Reels 20 Geographic markets 22 Nederman Aftermarket 23 References
24 Objectives Shares 2007
25 Financial information in summary
Financial
26 Directors’ report
28 Consolidated income statement 29 Consolidated balance sheet 30 Summary concerning changes in the consolidated equity
31 Consolidated cash flow statement
32 Income statement – Parent company 33 Balance sheet – Parent company
34 Changes to shareholders’ equity Parent company
35 Cash flow statement – Parent company 36 Notes
69 Proposed appropriation of profits 70 Auditors’ report
71 Corporate governance 73 Articles of association 74 Board of directors Senior executives 76 Notification to attend the Annual General Meeting 77 Financial definitions
Sales
Operating profit (EBIT)
Average number of employees Sales (by business area)
Important events during the year
• Nederman is listed on the OMX Nordic Exchange Stockholm (May 2007).
• Acquisition of LEDA, the Belgian installation and service company.
• Nederman gains base in South America through the acquisition of AtSource Exaustao Localizada, Brazil.
• EQT sells its shareholding and Latour acquires a major block of Nederman shares.
• Acquisition of Fumex Installations Ltd.
2007 in summary
*Net debt/equity ratio
Operational cash flow
*) Excl. IPO costs
SEK m SEK m
SEK m
SEK m
1
Nederman develops, produces and markets proprietary products and systems for the extrac- tion and filtration of dust, smoke, vehicle exhaust gases, as well as equipment for industrial cleaning. All these products and systems are based on vacuum technology that covers the entire spectrum of high, mid and low vacuum systems. The company also produce and sell an extensive range of hose- and cable reels for water, air, oil and other media.
Nederman’s systems help in many ways to create a clean working environment while providing efficient, safe workstations around the world.
We supply our customers with comprehensive solutions featuring everything from pre-studies and project work to installation, start-up and service.
One of the world’s leading
environmental technology companies
• Nederman was founded in 1944
• Manufacturing is ISO 9001 and ISO 14000 certified
• Production and assembly facilities in Sweden, Norway, Canada and China
• Own sales organisations in 24 countries
• Agents and distributors in around 30 countries
• The Group had around 600 employees by the end of the year
*) Excl. IPO costs 6694
**) Before dilution
***) Board’s proposal to the Annual General Meeting
Group*) SEK m 2007 2006 2005
Net sales 1 041 359 877 794 807 539
Gross profit 515 572 431 265 390 651
Gross margin % 49.5 49.1 48.4
EBITDA*) 131 864 104 384 82 082
EBITDA margin %*) 12.7 11.9 10.2
Operating profit*) 114 071 85 376 63 099
Operating margin 11.0 9.7 7.8
Profit before tax*) 105 338 75 609 51 134
Profit after tax*) 75 186 54 953 48 897
Earnings per share*) **) 6.42 4.73 4.25
Dividend per share, SEK***) 2.50
Operating cash flow*) 88 496 70 891 58 237
Return on shareholders’ equity % 18.2 15.7 16,6
Return on operating capital % *) 20.0 15.9 12.2
Net debt -145 625 -163 893 -207 661
Net debt/equity ratio % 32.2 43.5 63.8
Net debt/EBITDA, multiple *) 1.1 1.6 2.5
EBITDA/net financial items, multiple *) 15.1 10.7 6.9
Average no. of employees 568 528 511
Key figures
When EQT became the main owner the situation at Nederman was differ- ent than it is today. The product range was out of control. Manufacturing and distribution needed rationalising and streamlining and sales channels needed renewing. Profitability wasn’t reaching its set goals either. The company therefore introduced a project of change, divided into two steps. The first was a comprehensive restructuring of the business and the second dealt with securing the company’s continued growth. When we were ready with the first step the number of manufactur- ing units had dropped, stocks had been centralised and the number of suppliers drastically reduced. Nederman now has a modern, effective purchasing and logistics department. By outsourcing component manufacturing to a select few manufacturers in Western Europe and in low cost countries in Eastern Europe and Asia, we have also been able to cut the total manufacturing costs. Nederman invests in and owns the production tools that the contracted manufacturers use. In parallel, our own production is now aligned to mainly include assembly of end products and systems, meaning greater flexibility.
Increased awareness of environmental issues
Nederman is an environmental tech- nology company, which since it started in 1944, has developed environmen- tal solutions. It began with fans to improve ventilation in workshops and industries. Today Nederman provides a wide range of products and systems for capturing and filtering polluted air and harmful particles. The philosophy of the company has always been to create a clean, safe and effective working environment. In the 1990s, Nederman added, “Improving your workspace”, to its logo to highlight this philosophy.
Since the beginning interest in personal working environments and environ- mental issues has increased dramatical- ly. These are now important issues for countries, authorities, companies and individuals – on a global perspective.
We are becoming more aware of the importance of a clean, healthy environ- ment and we have the chance to impact on developments. In many countries this has meant the introduction of new laws and stricter regulations. This is a development that we can expect to see continuing.
Nederman’s focus
By 2003 we had come so far in restruc- turing the business that we could start step two of the changes – securing the company’s continued growth. Accord- ing to the strategy developed by the management and board at the time, Nederman was going to prioritise:
• Expanding into new customer segments
• Expanding the value chain through increased sales of systems directly to the end user and an increased share of aftermarket sales
• Geographic expansion, mainly on growth markets
Increased investment in com- plete solutions and system From previously concentrating on product sales the focus has moved over to systems supplied from our own sales companies.
We now have our own sales units in 24 countries that are fully competent at selling systems directly to end-users.
The share of direct sales in 2007 was around 44 per cent of total sales.
“I can without exaggerating say that 2007 has been one of the most interesting and exciting years in Nederman’s history.”
When EQT, which became Nederman’s main owner about seven years ago, decided to list our company on the OMX Nordic Exchange Stockholm, it was the beginning of a new phase in Nederman’s history.
It’s been almost a year since Nederman became NMAN on the Nordic Exchange.
This first year has been very intensive and has meant new, more detailed demands on reporting and information to investors, shareholders, authorities and other interested parties. Both smaller and larger investors followed Nederman’s listing with interest and shares was 10 times over-subscribed.
WORDS FROM THE PRESIDENT AND CEO
3
Increased product range in the segment
Our years of experience from different customers’ businesses has laid the foundation for developing complete solutions for different customer segments, such as, welding workshops, automotive workshops, composite manufacturing industries etc. While we have accumulated our skills within various customer segments, we simultaneously continue to expand our product range to these segments in line with our strategy.
New segments are increasing in significance
A relatively new segment for Nederman is the composite manu- facturing industry. More products are being made from these materials, such as cars, boats, aircraft, trains, wind turbine blades, cisterns etc. Composite materials have many different quali- ties and examples of materials include laminates, armoured plastics, carbon and fibreglass. The materials are easy to work with but the dust created when machining them can be harmful to health. Using our extensive experience of dealing with filtering dust and
particles we have produced a capture and filtration system specially designed for the composite manufacturing industry.
Greater use of composite materials
Expansion in the composite manufac- turing industry is growing at the same rate as the GDP on all continents. It’s mainly the wind power energy sector, with annual growth of 6 per cent, that’s pushing this forward. Asia is showing the highest rate of growth in this seg- ment, while Europe and North America remain at stable levels. Other areas like the automotive sector, pipe and cistern industry are showing signs of increased growth. Nederman received a number of orders from wind power manufactur- ing industries in the US, Europe and
countries in Asia, such as India and China in 2007. A number of the world’s largest manufacturers of wind genera- tors are located in India and China. To meet the greater demand from Asia Nederman established an assembly and logistics unit in the Shanghai area at the beginning of 2008.
New markets growing fastest Western Europe is traditionally Nederman’s largest and most important market but it’s on new markets that we’re growing fastest. At the end of the 1990s many Western European compa- nies moved their manufacturing units to former Eastern European countries and Asia. By establishing sales compa- nies in these markets we can continue providing services globally to these traditionally large companies. This strategy has proven very successful.
We are continuing to establish on these new markets. We have started very well in India and China, two markets where we expect to realise huge potential.
During 2006/2007 we opened our own sales companies in Brazil and Australia.
Markets outside Europe and North America are currently responsible for around eight per cent of total sales.
Development of customer seg- ments with specific requirements Parallel with this expansion onto new markets we have also met changes by aligning ourselves to new customer segments with specific requirements.
When one of Nederman’s core seg- ments, the metal engineering industry, moved from the traditional markets, we developed a series of products that met the strict demands of hygiene and explosive safety. These products allow Nederman to provide the food, chemi- cal and pharmaceutical industries with better and safer working environments.
Increased sales on Nederman’s aftermarket
We increased our aftermarket share from around three per cent of net sales to around 18 per cent between 2000 and 2007. Many of our markets have their own service teams but we also work very closely with externally authorised service companies.
Nederman also provides complete service packages including different levels of service. We acquired a major Belgian installation company, LEDA, at the beginning of 2007.
In late autumn 2007 we acquired Fumex Installations Ltd, one of the UK’s leading extraction and filtration installation and service companies.
The Nederman Maintenance Contract, a customerspecific contract for regular service and maintenance of facilities, was introduced in Sweden during 2007.
We will continue to strengthen our position on the aftermarket through both attractive acquisitions and a greater range of services.
Finally I would like to once again highlight that 2007 was an interest- ing, positive and a developing year for everyone at Nederman.
We saw good growth and are pleased that the continued profit trend is above the stated target.
Organic growth accounted for the main part of the total growth of 20 per cent.
As we will continue to work according to our set platform the situation looks positive in years to come.
Sven Kristensson President and CEO
WORDS FROM THE PRESIDENT AND CEO
Our business concept
“To help customers meet the demands of cleaner working environments and safer production”
Dust, smoke and particles are not just harmful to humans and the environment but also negatively affect the quality of the end product and increase wear and tear on machinery and equipment. Simi- larly, particles and oil mist can penetrate and damage sensitive electronics control- ling machinery and processes, causing unnecessary operational problems.
Complete solutions
Nederman has developed a compre- hensive range of products, systems and services, which combined with our application expertise, means we can help our customers achieve a cleaner working environment and safer production.
The Extraction & Filter Systems busi- ness area meets customer requirements for solutions for extraction and filtration of gas, smoke, aerosol, dust and larger particles.
The Hose & Cable Reels business area develops and manufactures hose- and cable reels. These products complement Nederman’s other products and are used in
many industrial applications – from auto- motive lubrication to high-pressure water hoses in food preparation.
Extensive experience and global expertise
Nederman has more than 60 years’ expe- rience of solutions within many industries including the engineering, automotive, food manufacturing and processing, pharmaceutical, chemical and composite manufacturing industries.
The global organisation gives a good insight into international and local envi- ronmental and health-related legislation.
A sharp focus on product development means the company can more than meet the market’s new demands and needs.
Nederman has on average spent approx.
2-3 per cent of its overall sales every year in developing new products and systems.
ATEX* is another area in which Neder- man is active. Nederman has also recently focussed on methods of dealing with dust and particles that occur when working with composite materials. This industry is undergoing rapid expansion because
composite materials are being more wi- dely used in manufacturing automotives, aircraft, boats, wind turbine blades, etc
Aftermarket Services
In order to safeguard the function of the equipment and systems provided by Nederman the company also provides a comprehensive aftermarket service and maintenance package. This activity is undergoing rapid expansion.
Nederman carried out corporate acqui- sitions in this sector in 2006 and 2007, including LEDA in Belgium and Fumex in the UK. Fumex is one of the UK’s big- gest installation firms within Nederman’s business area and mainly concentrates on the car repair workshop sector. The acquisition of LEDA and Fumex is part of Nederman’s strategy of getting closer to the end-customer, focusing more on direct sales and taking advantage of the opportu- nities available on the aftermarket.
Clean air is essential for health and the envi- ronment. Air pollution such as welding smoke and exhaust fumes, dust particles from grin- ding and polishing as well as oil mist from cutting fluids are harmful.
Exposure to these pollutants can cause al- lergies, asthma and chronic illnesses and diseases such as cancer. Uncontrolled emis- sions damage the environment both over the short and long term.
Nederman has conducted extensive studies of oil mist in engineering workshops and in the food industry.
These activities have led to the development of the Nederman Oil Mist (NOM) filter.
* ATEX comes from the French “Atmosphere Explo- sible”, meaning explosive atmosphere, and is an EU directive concerning safety when using equipment in explosive environments. The directive consists partly of a product directive (94/9/EC) and partly a user directive (1999/92/EC).
5
Extraction and filtration at source – effective and energy-efficient
Nederman’s basic concept is to capture dust, smoke, exhaust fumes and other particles at source. Extraction and filtration using low vacuum systems is facilitated by a low negative pressure and lots of air close to the source. Close proximity to the source of the emission stops air pollution spreading to the surroundings. The air is filtered and the harmful partic- les collected. This technique is very effective and reduces energy consumption compared to central ventilation systems.
Nederman’s control and regulation system with its patented automatic draught regulator also adapts extraction at the individual workstation with respect to the requirement for other workstations.
Nederman also develops and markets high vacuum systems. This involves highspeed extraction with a high negative pressure very close to or directly at source. Typical applications include point extraction with integrated hand-held tools for grinding, cutting, blasting or welding.
Nederman’s high vacuum system is also used for keeping machinery, floors and work surfaces clear of swarf and other coarse particles.
Safe and effective work
Loosely lying hoses and cables are a safety risk because people can trip over them. Hoses and cables also become damaged by vehicles driving over them. Over the past 30 years Nederman has developed and manufactured guide hoses and cable reels that make workplaces in various industries safer and more effective. Hoses for different media, such as electrical cables, are made easily accessible when needed while also being out of the way when not in use. Nederman introduced a new series of reels in 2007 for air, water and electricity.
Solutions for cleaner working environments and more effective production
Nederman’s products and systems add value for customers by
creating:
• a clean and safe working environment
• improved quality of the finished product with fewer operational stoppages
• more effective production
• improved energy utilisation
Nederman ServiceGate, launched in 2006, is an example of how Nederman makes service work on heavy goods vehicles safer and more efficient. Hose reels for air, water, oils, coolants and other liquids are collected together for ease of access. The floor is kept free of cables and hoses that people could easily fall over and vehicles would damage if they drove over them. Nederman ServiceGate can be equipped with various hose reels, for oil filling for example, that include analogue or digital readouts and an automatic refill function of pre-set volumes.
At this plant in India Nederman`s systems for capturing and filtering oil mist creates a more clean and more safe working area.
Composite materials are becoming more common when manufacturing cars, boats and aircraft components. Koenigsegg, the manufacturer of the world’s fastest super sports car, sets extreme demands on quality and finish. Nederman’s extraction system, with its integrated tools, ensures that the air is free from fibres, particles and dust produced when tooling the composite materials.
India
Koenigsegg, Sweden
Tools with high vacuum extraction are also used when working with wood, car spray painting workshops and when working with metal etc.
Oil mist is a health and safety risk.
Nederman’s NOM filters make it possible to meet new oil mist regulations and directives.
7 Volkswagen is Brazil’s biggest automotive manufacturer with 22,000 employees and five factories.
This factory installed a high vacuum system in 2007 for extracting welding smoke.
The Madrid Municipal Transport Company has built a service and maintenance facility for its 300 or so buses. The facility is equipped with many of Nederman’s systems. These include a central high vacuum system for cleaning the vehicles, track-based systems for extracting exhaust gases, point extraction for tools, and systems for extracting welding and exhaust gases.
Volkswagen, Brazil
Madrid Municipal Transport Company, Spain
Market forces
Increased awareness concerning the
environment and health
The cost of dust, gases, particles and other pollutants in the workplace has increased in recent years and is expec- ted to continue. Awareness is highest in Northern Europe and the northern US states, and lower in Southern and Eastern Europe, the southern US states and Asia. Nederman is seeing increased demand in Asia. In China and India, where industrial development is rapid, companies often invest immediately in the latest environmental technology instead of investing gradually through many technical generations.
It’s becoming an increasing trend around the world that companies and industries with inhumane working environments and unethical practices become the subject of scrutiny and sanc tions.
Consumers and environmental organi- sations on an increasingly more global market are becoming important driving forces.
Stricter directives and laws
As awareness grows about the environ- ment and health risks, laws and regu- lations are expected to become more stringent while also becoming more co-ordinated over greater geographical areas. Legislation harmonisation in the EU is increasing, even though local laws and regulations are still influen- tial.
Stricter laws and regulations are posi- tive for Nederman’s development, even if the introduction rate for new regula- tions and the extent to which they are observed differ between countries and regions. Nederman expects the Nordic region and Western Europe to lead the way in this area.
Increased focus on production efficiency
Growing demands are being placed on increased efficiency, which benefits Nederman’s development. A dusty, dirty and polluted indoor environment is tough on employees and wears down machinery and tools. Equipment that runs processes and operations can become damaged, causing unplanned, expensive stoppages.
Sharper focus on energy savings
Nederman expects rising energy prices to increase demand among manufactu- rers for energyefficient air treatment.
This will mean that extraction equip- ment will need to be energyefficient and not waste heated/cooled air. This is a clear trend in areas with cold clima- tes, but also in warmer countries where people depend on air-conditioning.
Nederman is active on an expanding market driven by heightened environmental awareness, energy use and productivity. Interest in sound, safe working environ- ments is a strong driving force, which is causing more countries to introduce stricter regulations concerning working environments. Nederman is well-equipped to grow on this globally enlarging market.
• increased awareness concerning the environment and health
• increased focus on effective production
• stricter regulations on environment and health risks
9
Environments with risk of explosion
Dust explosions can occur when handling dry materials (i.e. metal particles, flour, sugar and wood dust) within the food and pharmaceutical industries, for example.
Various kinds of gas, such as those used in the chemicals industry, can also cause explosions. Since mid 2006 a law has been in place stating that all equipment and components (both new and existing) in explosive environments must be appro- ved according to the ATEX directive*) issued by the EU.
*)ATEX comes from the French “At- mosphere Explosible” meaning explosive atmosphere.
Welding in stainless materials Exposure to welding smoke, especially when welding stainless steel, involves potential health risks. Welding smoke con- tains manganese and hexavalent chrome, Cr (VI), which is very harmful. Measures are now being implemented in many countries in order to cut the permitted limits for exposure to chrome and man- ganese. Stricter limits were introduced in the US and Sweden in 2007 for exposure to welding smoke containing hexavalent chrome and manganese.
Oil mist from machining Oil mist is made up of small airborne droplets that are produced when coolant fluids are used during machining. The droplets hang in the air and are then ea- sily inhaled. Toxic chemical compounds in the coolant fluids will be absorbed by the
lungs and enter the body. Depending on the chemical content, this exposure can lead to skin or eye irritation, pulmonary related illnesses and other internal injury. Oil mist can also damage sensitive electronic equipment that controls the machinery. Oil mist is also a serious safety risk when it settles as a thin film on floors, tools and equipment. Regulations and directives concerning the spread and limitation of oil mist have therefore existed in the EU and US for some years.
Working with composite materials
Composite materials are becoming more common when manufacturing boats, aircraft parts, car parts, sports equipment, tanks, cisterns and a wide range of other products such as wind turbine blades.
Dust, particles and fibres that appear when working can cause skin irritation and damage air passages. Working envi- ronment organisations in many countries have highlighted the risks. Regulations and directives have therefore been introduced that require grinding and cut- ting machines to be fitted with extraction devices to keep pollution within regulated levels
Exhaust gases in emergency callout stations
Another area where legislation around the world is being tightened is for handling exhaust gas from all kinds of vehicles – from cars to heavy military vehicles.
Very strict demands are placed on clean, healthy environments especially in fire stations where personnel work, live and sleep for long periods. Diesel exhaust gases from vehicles are a huge health risk because they contain lots of different carcinogenics.
Exposure to and risk from these substan- ces are greatest during callouts when the vehicles start their engines. Indirect, passive exposure to diesel exhaust gases can also damage and irritate skin, eyes and mucous membranes.
The problem was highlighted a few years ago in the US and personnel organisa- tions have actively campaigned for the introduction of stricter regulations for a safer, improved working environment.
Many other countries have followed suit and introduced similar regulations.
Increased awareness leads to stricter
restrictions and regulations
Sustainable development
Over the years Nederman has developed products and solutions that make it possible to protect people from harmful particles, fibres, dust, gas, smoke and oil mist etc., while reducing the burden on the environment. Many of these products and solutions have been groundbreaking in their field.
The need for environmentally protective solutions has increased in line with the rapid industrial expansion in developing countries. For the same reasons, the stricter laws and ordinances in areas concerning health and the environment in the western world are causing an increased need for environmental efforts. Nederman is contributing to this in a very real sense towards sustainable development.
Lifecycle perspective
Nederman develops its products and
systems from a lifecycle perspective.
This means that all environmental consequences throughout the entire life of the product are taken into considera- tion, from manufacturing, distribution and use, through to distruction.
The aim is to minimise all negative environmental side-effects.
Environmental policy
Nederman’s external environmental impact shall continuously be reduced, relative to supplied volumes. This also covers Nederman’s business with suppliers and retailers, who must also make continuous improvements according to the same environmental demands and criteria that Nederman sets for its business.
The environmental consequences shall always be considered for new business and processes. Nederman continuously monitors observance
of its environmental policy. The company works continuously to make improvements that go beyond current environmental demands. All employees are involved in environmental work and they are authorised to report non- conformance. Environmental surveys are carried out when necessary or in connection with the audit of control schedules every three years by external auditors authorised under the Environmental Protection Act.
For more than 60 years Nederman’s business concept has been to protect people’s working environment and their surrounding environment. Sustainable development has always therefore been of central significance.
Nederman is certified according to the SS-EN ISO 9001 quality assurance standard and the SS-EN ISO 14001 The blades of wind turbines are made from composite materials. The use of composite materials is increasing strongly. Unprotected machining involves the risk of harming lungs and air passages similar to the damage caused when handling asbestos. Nederman has developed solutions that minimise these risks.
11
ÅTERVINNINGSBARA MATERIAL
Nederman’s internal work for a sustainable development
Developing new products
A careful environmental analysis of materials is carried out when developing new products. Nederman’s aim is to only use materials that are recyclable according to a list of priori- ties. The materials in recently developed products, with a few exceptions, are completely recyclable. The few per cent that aren’t recyclable are used for energy recovery. To facilitate recycling we strictly demand that dismantling of our pro- ducts shall not take more than twice the assembly time.
Existing products
Material in existing products is continuously analysed and the chemical make-up is checked. Nederman fully observes EU directives including regulations concerning chemical substances such as flame retardants and chrome (VI). Our existing products also follow our demands for maximum dismantling and disassembly times.
Manufacturing
Nederman has no manufacturing in the traditional sense, but instead outsources manufacturing to selected suppliers.
Nederman is responsible for assembly that doesn’t generate any emissions. The suppliers are carefully chosen and Nederman continually checks that suppliers meet demands and follow relevant regulations.
Waste management
Nederman’s manufacturing generates very little waste material. Packaging is sorted for recycling or energy r ecovery with no material going to landfill sites.
Transport
Nederman’s aim is for 99 per cent of all outward transport to be handled by environmentally certified companies. This aim was met in 2007 for 99.3 per cent of transport. The aim for inward transport is set at 70 per cent. Nederman tries to persuade suppliers, as much as possible, to use environmen- tally certified companies.
Environmental organisations
Nederman is a member of the “Network for environmentally adapted product development”, run by the IVF (Institute for engineering research). Nederman is also involved in the environmental network managed by Helsingborg Municipality.
Nederman regularly holds training and information meetings for production and product personnel on environmental issues. All new employees are informed about the company’s environment scheme.
Employee consideration
Nederman cares about its employees’ working environment and health. Nederman also respects personal integrity as explained in the Code of Conduct. Nederman provides a corporate healthcare plan including emergency healthcare, preventative medicine and rehabilitation. A keepfit scheme is paid for in part by Nederman.
Accident prevention measures
Nederman continually educates its employees about the risks involved in production and assembly. Risk is assessed through regular safety and fire rounds and measures are implemented to eliminate the risk of accidents. Very few incidents have been reported and no serious accidents have occurred.
Norden 50%
Storbritannien 11%
Övriga Europa 27%
Nordamerika 11%
Övriga länder 1%
Kvinnor 20%
Män 80%
Nederman is active through its own sales organisations in 24 countries and through agents and distributors in a further 30 countries. Against a background of cultural and ethnic diversity, shared values and guidelines are required for human
interaction. Nederman formulated its Code of Conduct in 2007, which is now observed throughout the organisation.
The refurbished Nederman Training Center was re- opened in the autumn at the head office in Helsingborg.
Here, the company arranges courses and training for sales employees, service technicians and distributors, and new employees receive an introduction. Next to the training centre is a hall featuring Nederman systems and solutions for demonstrations and practical training. The Nederman Training Center also has access to reference facilities from various industries including the fire service, composite material manufacturing, welding and mechanical engineering.
There are also training centres for employees and customers in the UK and Canada.
Personnel, ethics and training
Nederman Training Center in Helsingborg
Nederman Training Center
Courses and training for employees, service technicians and distributors
Code of Conduct
Division of employees
The Code of Conduct is linked to the UN’s declaration on human rights and the OECD’s guidelines for multinational companies
Division by gender
Nordic region 50%
United Kingdom 11%
Rest of Europe 27%
North America 11%
Rest of the World 1%
Women 20%
Men 80%
13
8% 19%
38% 48% 58% 68%
72%
100 80 60 40 20
0 2001 2002 2003 2004 2005 2006 2007
%
Product development
Nederman is an internationally strong brand that can compete using other values than price. This is largely the result of consistent investment in product development over several years. An average of 2 – 3 per cent of net sales is set aside for product development every year.
Most of the Nederman’s products are developed inhouse.
Thirty or so specialists work on product development, technical support and product welfare.
The work concentrates on developing new solutions that reduce health risks and environmental impacts. Design, function and modularisation are central concepts.
Nederman develops and owns all moulds and tools, thereby minimising the risk for copyright theft.
72 per cent of the products sold in 2007 have been developed since 2001.
Development projects in recent years include:
• New series of capture arms for workshops and laboratories
• Filter unit for capturing/separating oil mist
• Stationary and mobile units for capturing/filtering welding smoke, dust and particles
• Stationary vacuum system for capturing/filtering larger particles
• A new series of stainless reels for applications requiring high levels of hygiene
• A new rail system for extracting vehicle exhaust gases while they’re moving
• A new system for extracting exhaust gases from emergency vehicles
• A new series of cable reels for water, air and electricity
Nederman developed a completely new range of extraction arms in 2006, mainly for laboratories and the electronics industry
Nederman’s new reel series for electricity, water and compressed air was launched in 2007.
Nederman PTS, which was developed in 2007, is an extraction system for emergency vehicles.
Nederman’s new arm series, developed in 2006, brings together modern design with good function.
Development of the proportion of newly developed products
New products Existing products
Komponenter Moduler Produkter/System
Mississauga Sandefjord
Shanghai Helsingborg
Jung*
Sandefjord
Helsingborg Jung*
Manufacturing and logistics
Nederman’s inhouse production concentrates mainly on assembly of end products and systems.
Component manufacture is out- sourced to producers in Western Europe and low-cost countries in Eastern Europe and Asia. Nederman owns and invests in many production tools that are used by the contracted manufacturers at their sites.
Nederman uses a modular platform concept, which reduces the complex- ity and cost of production. A number
of different products and systems can be created with specific functions and performance using the basic models as a template.
The company’s biggest assembly facility is situated in Helsingborg.
There is a smaller assembly facility in Mississauga, Canada, where products for the North American mar- ket are assembled. Nederman Nor- clean Line is developed and assembled in Sandefjord, Norway.
To meet the growing Asian demand, Nederman has built an assembly and logistics unit in Shanghai.
Effective logistics are one of Nederman’s success factors. Nederman works continuously to make stock control and logistics more effective with products and systems distributed more often straight from the central stores to the end user.
For the past few years warehousing has been concentrated at two sites, Helsingborg and Mississauga.
Nederman has operated a warehousing facility of its products in Shanghai since the beginning of 2008, which increases accessibility in South East Asia.
There are also warehousing facilities in Australia.
Centralised warehousing
Modules and platform concepts
The Asian market is expanding strongly. Nederman opened an assembly and logistics unit in Shanghai at the beginning of 2008.
* Nederman aquired Töredal Verkstad AB at the beginning of 2008
Components Modules Products/System
15 Metallbearbetning 40%
Fordonsservice 32%
Övrig Industri 28%
1) I och med att omkring hälften av bolagets försäljning sker indirekt är nedbrytningen per kundsegment en uppskattning av Nederman.
Uppskattningen inkluderar en bedömning av hur den indirekta försäljningen i slutänden fördelar sig mellan kundsegmenten.
Metallbearbetning 40%
Fordonsservice 32%
Övrig Industri 28%
1) I och med att omkring hälften av bolagets försäljning sker indirekt är nedbrytningen per kundsegment en uppskattning av Nederman.
Uppskattningen inkluderar en bedömning av hur den indirekta försäljningen i slutänden fördelar sig mellan kundsegmenten.
Customer segments
Nederman concentrates its marketing activities on three primary customer segments: Metal fabrication, Automotive service and Other industries. Metal fabrication accounts for an estimated 40 per cent of sales. Automotive service accounts for around 32 per cent and Other industries for 28 per cent.
The Metal fabrication and Automotive service segments are relatively mature in Western Europe, while the growth potential in Eastern Europe, the US and Asia in particular, are considered good.
Growth potential in the Other industry segment is favourable with many different industries undergoing strong growth, including the composite material manufacturing and fabrication industries. Composite materials are used in the manufacture of
boats, aircraft, cars and wind turbine blades. Nederman received many major orders from the international wind power industry in 2007 and the future demand continues to look positive.
Total solutions
Nederman has extensive experience of solutions that reduce the impact on the environment and health in various industries. Nederman provides products and systems and takes overall responsibility for project management.
Nederman’s services can include everything from planning and design to installation, preventative maintenance and service.
Estimated breakdown of net sales per customer category in 20071)
Metal fabrication industry
Engineering workshops Welding workshops Manufacture of light and heavy vehicles
Automotive service
Light and heavy vehicle workshops Emergency stations
MOT testing centres
Other industry
Composite manufacturing industries Chemicals industry
Pharmaceutical industry Oil and Offshore industry Laboratories
Food manufacturing industry
1) Because around half of sales are indirect, Nederman has estimated the breakdown per customer segment.
The estimate includes an assessment of how the indirect sales finally divide between the customer segments.
Metal fabrication industry 40%
Automative service 32%
Other industry 28%
55%
45%
2000 2006 2007
10%
39% 44%
Nederman operates via direct and indirect sales. Direct sales are made to end customers through Nederman’s sales organisation. The business mainly includes systems and solutions, often with total overall responsibility.
Indirect sales mainly include product sales and occur via wholesalers, retail- ers, installers and other external inter- mediaries. By working with a mixture of different sales channels, Nederman reaches customers that have different purchasing routines.
In recent years Nederman has increased the amount of direct sales via its own sales companies.
Parallel to this, Nederman has also aimed at boosting direct sales via wholesalers and retailers through a range of activities. This has resulted in both increased volumes and improved profitability.
Sales channels
Brand-building at every juncture
Nederman’s new generation H20/30 and C20/30 reels for electricity, air and water were launched in autumn 2007.
Modern product design, profiled packaging and compre- hensive advertising and SP material contributed towards a successful introduction. This example shows how
Nederman works through indirect sales, while also profiling the Nederman’s brand all the way to the end customer.
NEDERMAN Indir
ectDirect
Wholesalers/
Retailers End customers End customers sales companiesOwn
Direct sales have increased from about 10 per cent of net sales in 2000 to 44 per cent in 2007
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Selling total environmental technology solutions requires expertise. Nederman has developed solutions in close co
operation with customers from many different industries over the years, which now gives them this expertise. Nederman’s commitments can include every step from the design of the facilities, products and systems to installation, preventative maintenance and service.
NedQuote – Nederman software
Nederman has developed its own software, NedQuote, to help plan, build and cost projects. NedQuote provides customers with a complete background for a facility including systems and units. These are presented as detailed printed plans or as a 3D computer program.
Total solutions
This plant is an example of how Nederman´s solutions can create clean, safe and effective workshops Service workshops
• Systems for extracting exhaust gases
• Reels for electric cables, compressed air, water etc.
• PowerBox electricity, compressed air and vacuum terminals
• Mobile and stationary systems for extracting welding smoke
• Complete service units for handling oils and liquids
General workshops
• PowerBox central outlet for compressed air, vacuum and electricity
• Mobile and stationary systems for extracting welding smoke
Break-testing
• Systems for extracting exhaust gases Central high vacuum systems
• Including filters and hose systems
Sheet metal workshops
• Mobile and stationary systems for extracting welding smoke
• PowerBox central outlet for com
pressed air, vacuum and electricity
• High vacuum system for cleaning and extracting larger particles
Car wash
• Reels for various kinds of media
• High vacuum systems for both extracting larger particles and cleaning
Systems for handling oils and liquids
• Complete systems for handling, registration and administration
Extraction & Filter Systems
The business area, Extraction & Filter Systems, provides a complete range of products for extraction and filtration.
This allows the company to meet custo- mers’ entire needs for extraction of gas, aerosol gases, dust and large particles.
Using various vacuum technologies the business area divides its products and systems into three product areas:
High vacuum, Low vacuum and Ex- haust systems.
High vacuum
High vacuum involves the extraction and filtration using high speeds and high negative pressure very close to or directly at source. The technology is used for large particles (compared to low vacuum), for example in con- nection with extraction of sanding and grinding dust, cleaning machinery and workplaces, extraction of swarf, etc:
Nederman provides a range of high vacuum products that include everyth- ing from large stationary installations to smaller portable units.
This range also includes solutions for extraction integrated for use with a range of grinding and polishing tools and other hand-held tools.
Low vacuum
Low vacuum involves extraction and filtration using low negative pressure and large air volumes close to the source. Low vacuum products and systems are used where the air is polluted by small, slow-moving particles such as weld smoke or flour dust. Extraction is carried out with the help of extraction arms, vacuum hose attachments, casings and housings located close to the source of pollution.
Low vacuum is used in for example welding and the recycling of oil mist, and in pharmaceutical processes and food manufacturing that use ingredients or chemicals in powder form.
Nederman has also developed a range of extraction arms for laboratories, research institutes and schools. Bench- Top arms are also used in small-scale or smaller industrial applications like soldering and gluing or when working with solvents.
Exhaust systems
A specific low vacuum application would be for exhaust gas extraction for various
kinds of vehicles. These systems are designed for service workshops, vehicle inspection centres, emergency services vehicles and automotive manufacturers.
This application also includes a special range of products for emergency services vehicles where the vehicles need to be on 24-hour standby, while needing to prevent emissions of harmful exhaust fumes in the fire and ambulance stations.
The Extraction & Filter Systems business area´s net sales 2007 rose to SEK 866 million (743), an increase of 17 per cent compared to the previous year. The operating profit rose to SEK 96 (71), an operating margin of 11.1 per cent (9.6).
Extraction & Filter Systems 2007 2006 2005
Net sales, SEK m 866 743 684
Growth 16.5% 8.5% 9.6%
EBIT, SEK m 96 71 54
EBIT margin 11.1% 9.6% 7.9%
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Workshops and factories need effective, reliable supplies of media such as oil, air, water, gas and electricity. The Hose &
Cable Reels business area meets these needs by providing a wide range of hose- and cable reels.
Nederman’s reels make work more efficient by
ergonomically providing quick and easy access to different media. The workplace is made safer by reducing the risk of accidents caused by tripping over cables. Tidying up and cleaning become easier and you avoid mechanical damages and unnecessary wear and tear on hoses and cables. The business area’s products are used in many different industries – from lubricating vehicles to high-pressure water hoses in food preparation. Some models are made from stainless materials, such as stainless steel to withstand extremely exposed environments.
Nederman has also developed a range of EX-approved reels for environments with the risk of explosion.
The Hose & Cable Reels business area´s net sales 2007 amounted to SEK 175 million (135), an increase of 30 per cent compared to the previous year. The acquisition of the Belgian installation and service company LEDA was responsible for 11 per cent of this climb. The operating profit amounted to SEK 18 million (14), an operating margin of 10.4 percent (10.3).
Hose & Cable Reels
Hose & Cable Reels 2007 2006 2005
Net sales, SEK m 175 135 123
Growth 30.4% 9.8% 0.5%
EBIT, SEK m 18 14 9
EBIT margin 10.4% 10.3% 7.4%
