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Nilfisk Q1 2025 CONFERENCE CALL PRESENTATION May 13, 2025
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This presentation contains forward-looking statements. Any such statements are subject to risks and uncertainties, and several different factors, of which many are beyond the Group’s control, can mean that the actual development and the actual result will differ significantly from the expectations contained in the Interim Report and this presentation. Accordingly, forward-looking statements should not be relied on as a prediction of actual results. Forward-looking statements Q1 20252
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Q1 20253 Key highlights Q1 2025
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Q1 20254 New CFO: Welcome Carl Bandhold Carl Bandhold joined Nilfisk as Executive Vice President, CFO on March 24 Carl has extensive experience from senior roles, including: • Deputy CEO and CFO, Profoto • CFO, JM AB • CFO, Permobil • Principal, Boston Consulting Group Carl brings an owner-oriented mindset and a strong track record of creating shareholder value through disciplined capital allocation Carl’s appointment as CFO does not change Nilfisk’s financial guidance for 2025
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• Strong organic growth in EMEA and moderate growth in APAC offset by decline in the Americas • Lower capacity in the US high -pressure washer business led to a 4 mEUR revenue decline versus Q1 2024 • EBITDA margin of 12.2% as strong gross margin expansion was offset by increased overhead costs from investments into the commercial organization • Financial development in line with expectations, announced initiatives under the strategic roadmap for 2025 have been implemented Q1 2025: high activity and strong focus on execution Q1 20255 256.5 mEUR Revenue 31.3 mEUR EBITDA (bsi) -1.2 % Organic growth 12.2 % EBITDA margin (bsi)
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6 Supply chain and price adjustments to offset existing tariffs Q1 2025 * As of May 13, 2025. • Geopolitical uncertainties and tariffs have influenced overall market sentiment and company operations • Flexible and robust supply chain enables repositioning towards US market • Execution on plan to change product flows, which together with moderate price increases, offsets last week’s 145% tariffs on Chinese manufactured goos • In light of yesterday’s announcement, execution of plan will continue • Product sourcing into the US (FY2024) • ~30% China, ~50% North America, 20% European Union
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Q1 20257 Market outlook by region EMEA • Strong growth in Europe driven by effective commercial execution and expanded sales and service coverage in key markets. Positive momentum expected to continue Americas • Weak quarter driven by high backlog release in Q1 2024, lower revenue in US high - pressure washer business, continued soft demand • Outlook for the remainder of 2025 is uncertain due to tariffs. Improvements in order intake, new leadership and products, increased sales density, will support performance in H2 2025 APAC • Returned to growth after challenged 2024, driven by pockets of increased demand. Positive momentum is expected continue, with targeted opportunities for growth
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• Results in North America below expectations for 2024, continued uncertainty in 2025 • Key focus areas: – Increasing sales density – Refreshing core product portfolio – Strengthening product and parts delivery – Implementing organizational changes • Clear areas for improvement, turning around performance remains a key priority in 2025 Strategic roadmap for 2025 Organisational changes and enhanced operating model better position Nilfisk for long-term growth Full-year results 20248 • Responsibilities that should sit closer to customers currently reside in centralized functions • Enhanced operating model will better support customer-facing functions through increased accountability for local business leaders • Less centralized decision-making will allow for more attractive value propositions across customer verticals • Commercial functions shifted to respective regions during Q1 Improve competitive position in North America Enhance the operating model • Reduction in support functions executed and commercial coverage increased in Q1 Production and distribution optimization ongoing: • Consolidation of Hungarian production sites will be completed early in H2 2025 • Sales entity optimization in APAC ongoing • US high-pressure washer business presented as assets held for sale Overhead cost reduction program will start in Q2 2025 Execute structural efficiency improvements
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Q1 20259 Financial update
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Revenue (mEUR), organic revenue growth (%) High activity across regions and strong focus on execution Q1 202510 259.0 278.4 240.6 249.9 256.5 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 -17.7% 74.4 mEUR Americas region 7.9% 164.6 mEUR EMEA region 2.9% 17.5 mEUR APAC region3.7% 2.4% -0.8% -0.6% -1.2% -1.2% Organic revenue growth Q1 2025
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EBITDA bsi (mEUR), EBITDA margin bsi (%) Strong gross margin expansion offset by increased overhead costs Q1 202511 12.2% EBITDA margin bsi Q1 2025 13.2% 12.2% 2024 Q1 Pricing & mix Freight & distribution Volume and raw materials Overhead 2025 Q1 34.2 39.2 30.4 32.0 31.3 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 13.2% 14.1% 12.6% 12.8% 12.2%
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12 43.2% Gross margin Q1 2025 108.3 117.6 101.9 106.1 110.9 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 2024 Q1 Pricing & mix Freight & distribution Volume, labor & raw materials 2025 Q1 41.8% 3.2.%-points -0.8%-points -1.0%-points 43.2% Q1 2025 Gross profit (mEUR), gross margin (%) Strong gross margin expansion to quarterly record -high 41.8% 42.2% 42.4% 42.5% 43.2%
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Q1 202513 89 2024 Q1 Product development Freight & distribution Merit pay R&D & IT capitalisation 96 2025 Q1 34.5% 37.3% Higher overhead costs driven by sales, service & product investments Overhead cost (mEUR), overhead cost ratio (%) Sales and distribution Up 3.6 mEUR from Q1 2024, driven by increased last-mile freight in the US and volume effects in EMEA. Further investments in the sales force are driving additional cost R&D Increased by 2.0 mEUR from Q1 2024, driven by continued investments into new product innovation Administration Increased by 0.6 mEUR compared to Q1 2024, driven by strategic projects Other Increased by 0.2 mEUR compared to Q1 2024 driven by a favourable one-off effect last year 37.3% Overhead costs ratio Q1 2025 89.4 94.2 87.6 90.8 95.8 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 34.5% 33.8% 36.4% 36.3% 37.3%
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Q1 202514 -19.8 mEUR Free cash flow Q1 2025 Working capital CAPEX ratio Operating cash flow NIBD 162.4 171.1 167.4 179.0 189.4 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 5.2 19.7 16.3 10.7 -12.5 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 267.3 263.3 257.7 270.1 292.3 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 4.9% Q1 2024 4.1% Q2 2024 4.4% Q3 2024 4.5% Q4 2024 2.7% Q1 2025 2.2 x Gearing Q1 2025 Changes in working capital drove negative free cash flow in Q1 2025 Working capital (mEUR), CAPEX ratio (%), cash flow (mEUR), NIBD (mEUR) and gearing ratio
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The financial outlook for 2025, as communicated on February 20, 2025, remains unchanged. The financial outlook is based on several assumptions including: • Stable market conditions in EMEA • Neutral development in the US versus 2024 • The APAC region returning to moderate growth • Ability to offset tariffs through supply chain optimization and price increases • Trade wars do not intensify and/or lead to a recession in key markets Outlook for 2025 Q1 202515 13% to 14% EBITDA margin before special items 1% to 3% Organic revenue growth
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Q1 202516 Q&A