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Good morning, ladies and gentlemen. This is Sven Kristensson here with Matthew Cusick. We are here to present the Q2 results that's been an interesting period in time.The summary is that we believe we had a very good profitability under very difficult circumstances. The lockdowns and travel restrictions around the world have had a major impact, locking, it's sort of a lockout from sites and abilities. But we have -- and that has obviously had a negative impact on order intake and sales and profitability.We can see that demand in the latter part of this quarter start to return. We see it in China, some other areas, and then we also have areas where they are closing down again. We have also, during the quarter, taken the decision for a program for Nederman's future stability. We have implemented a restructuring program, and we will have a cost of about 55...
SEK 75 million.
SEK 75 million and we will have about SEK 100 million annual savings. We will have half of the savings already in 2020. We are doing that in all divisions. Approximately 115 positions are impacted by these changes.
Okay. If I move on to Slide 3 and summarize some of the financials. Incoming orders for the quarter were SEK 740 million versus SEK 1.044 billion in Q2 last year. That's a currency-neutral decrease of 27.7%. Net sales were SEK 928 million for the quarter versus SEK 1.096 billion in Q2 2019. That's a currency-neutral decrease of 14% versus Q2 last year. Operating profit, including restructuring costs and some very minor acquisition costs, was negative SEK 2.3 million versus SEK 84.5 million. However, adjusted operating profit was SEK 73 million versus SEK 85 million in Q2 last year. That's an operating margin that increases to 7.9% from 7.7% last year. Net profit bottom line is negative SEK 10.4 million, gives us an earnings per share for the quarter of SEK 0.3 negative.If we look then at financials on Slide 4, on the year-to-date, the orders for the year-to-date are SEK 1.735 billion versus SEK 2.063 billion in the first 6 months of 2019. Currency neutral, that's a decrease of 16%. Net sales for the first 6 months, SEK 1.909 billion versus SEK 2.133 billion last year, a decrease of 10.4%.Operating profit, including these restructuring costs and acquisition costs, was SEK 62 million versus SEK 157 million last year. Perhaps more interesting to understand the operating -- is the operating profit. That was SEK 138 million versus SEK 158 million for the first 6 months last year. That's a margin year-to-date of 7.2% versus 7.4% last year.Net profit, SEK 23.8 million versus SEK 100 million last year, obviously, the restructuring costs having a big impact there. Earnings per share, SEK 0.68 versus SEK 2.87 last year. Again, the booking up of the full restructuring costs, which will mean cash flows outflows throughout the year, we haven't had the full cash impact of it yet, but that means -- that makes a significant impact there.We move on to Slide 5, and I'll let Sven talk a little bit about Extraction & Filtration Technology first.
Extraction & Filtration Technology has the global presence. We've seen that the lockdowns, travel restrictions have had a significant impact. Especially in the beginning of the quarter, we could see a notable retake in the market and reawakening in June.If we go into all Europe, all of the market in Europe has been negatively affected. We also have seen -- and it goes state-by-state in Americas, and there has been negative impact. While we see Asia that was closing down very early after Chinese New Year when they never came back, so to say, we've seen them opening up significantly earlier. We see some growth in that area.Large markets like Germany, we had a decline, but we could see improvements in June. Nordic region, we had declines, especially in Denmark and Sweden, while Norway was sort of flat.U.K. had an interesting pattern. We had all-time high in March, 0 in April, which is an over exaggeration, but still, you could see it sort of complete closedown. May was very bad. Then June came back fairly strong. So it varies. It's very unpredictable, and it varies.Netherlands, Belgium, in line with the last year. Southern parts, France and Spain, drastic reduction. You couldn't even go to site. Everything closed.Poland, we have seen a strong positive development, especially selling systems to wood industry and other related industries. Automotive has been strong historically for our distributor markets. The automotive closedown has, of course, had a negative impact there.And again, North America ended more positive than the beginning. Brazil is under a very slow -- with very slow activity and a very slow June. So you can see it's a very mixed picture. Where Asia is moving forward, we can see that some others are coming back a bit in June and doing better. We'll come back to the forecast going forward.The main activity has been, of course, meeting the demand by cutting costs using furloughs, different programs. Different authorities around the globe has granted. And by that, we have been able to manage our cost structure. Even more important that we are continuing to release new products. Unfortunately, we should have had planned to release them under a number of major exhibitions, both in metal fab and wood, et cetera. Unfortunately, for us, all of these has been closed down. So what we have -- we, in the end, had to say that we release anyway, and then we try via new digital media to have different seminars, which has had a positive receive -- been received by -- in a positive way by our customers. But of course, it's not like having the big bank on some of the exhibitions.This has been a clear work together with Monitoring & Control because it includes new smart control. It is what we call Insight Ready that you can if you want to have it hook to an IoT solution where you get also different kinds of service. We have also launched the myAir where you have to buy a subscription, get more information.So that's about Extraction & Filtration Technology.
If I just take a couple of minutes on numbers, I won't read out all of the numbers that you see on these slides. If we take the quarter in isolation, organic growth in order intake was negative 26%. In sales, we obviously aim to lift a bit of backlog. That was only 16.7% down. Adjusted EBITA, SEK 42.6 million for quarter 2 versus SEK 62.1 million in 2019 is -- we're rather satisfied with that level of EBITA, given the drop in volume that we have unfortunately seen in the wake of these lockdowns.If we then move on to Slide 6, Process Technology, Sven.
Yes. Again here, we have large installations and a lot of aftermarket. We have seen a significant decline in demand during the quarter. And that is purely a result of the lockdown. Many projects will most likely be completed. But there have been delays. There has been delays because you have traveling restrictions, you have not been able to visit sites and so on.Especially in the fiber and textile, a lot of spinning mills has been completely closed down during Q2, and that has also had a negative impact even on the aftermarket and service because you have not even been allowed at sites. We've also seen that the plant in India has been closed, completely closed due to authorities' restrictions. Lately, it's been opened, and then it was closed again, and then we -- it was opened because we are classified as an important industry since we help industries doing -- protecting nonwoven protective clothing and breathing masks. So again, just saying that it is a very volatile market to work under because we are under the spell of different authorities. We create the system when it comes to closing down or opening up and so on.So it's been a low demand, low activity. However, the positive side is that by latter part of Q2, China started to show significant increase in their activities.If we look at another large portion, which is foundries and smelters, there has been a recovery in Asia, especially in latter part of Q2. What we saw in Europe, the impact of restriction resulted in postponed orders and delays to project because, again, orders we had, targets that should be delivered, we were not allowed at site at the time. That has now started to bounce back, and we'll see how that goes.We have a good order backlog, mainly in Europe and partly in Americas in this segment. We have some project that has been postponed, but we expect them to be completed and/or go ahead but probably not until much later in the year.Yes, key activities. Improve productivity continued, and we have had that program over a lengthy period. We have fairly normal production capacity. We have managed to handle the difficulties in the logistic chains very well, apart from India where it's been a complete lockdown. Capacity and costs has been further adapted to address the safety trend, demand situation.So that's the situation in Process Technology.
Financials for Process Technology then, a very large drop in the quarter, as might be expected in a division that's highly reliant on large capital investments. So 51% down in incoming orders. Sales down 28% versus the same quarter last year. However, adjusted EBITA in percentage terms increased to 8.3%, and we have an adjusted EBITA of SEK 26 million versus SEK 33 million for quarter 2 2019. Again, not such a significant drop when we consider the overall sales volume impact.If we move on to third division, Duct & Filter Technology, Sven?
Yes. Again, it's like the power. Decline in sales due to COVID-19. So it has had, of course, an impact. Here, we are both for internal use and for external use, producing special piping or duct systems and suppression systems. And of course, if there are no installations or limited installations, then we have seen it. We saw a significant demand decrease in -- already in Q1 but also in Q2 in 2019. There's a strong decline, which we can't really say, but most lie in mid-sized orders sort of typically where you have the installers that are doing smaller or, say, mid-sized installation. However, the large orders have been because -- been performed, and they have made installation, most likely because that has no option. You have to do it in it. And then small orders for repairs and so on has been going very well. That's where we are. Our Thai plant continues to develop, but still it's a small portion of the division.Also, Menardi where we are doing back filters, it's been, yes, not too good. Again, there has been less manufacturing. And therefore, you do not necessarily need to make the change in filters.Of course, the key activities has been to protect profitability and cash flow, and we have also made more proactive things in finding new distribution in Sweden. And we have also increased the cooperation between our Danish main European factory in the U.K. plant. So in essence, most in the plant has been able to perform close to capacity.
On the financials of Duct & Filter Technology, in percentage terms, the order intake drop was very much in line with Extraction & Filtration Technology, actually 26% down in -- versus the corresponding quarter last year. Sales down 25% versus Q2 last year.Adjusted EBITA margin still at 11.4% despite the volume drop. So adjusted EBITA in SEK 13 million versus SEK 24 million in Q2 2019.If we move on to the least impacted division, Sven, Monitoring & Control Technology.
So far, the least impacted has been Monitoring & Control Technology where we have our measuring technology and our IT solutions. It's been continuously a largely positive development.APAC was the first region to display signs of recovery, and we have had a healthy growth in orders and sales in that region, especially in China, but also in other distribution countries like Japan and Korea.Europe sales and orders received declined somewhat. And again, we could see this as a result of the lockdown, lack of access to sites. And mainly Germany, U.K. was the main black sheep in this period. They were the ones that had the biggest decline somewhat.We had Americas where we have orders received rising, and we are in sales on par with Q2 2019, partly because we've been able to now further introduce our newly acquired NEO and Gasmet that has not been extreme. And we are piggybacking on our organization, the larger Nederman Group organization. So we -- if we can see a recovery in the economy, and so we have very positive ideas for what we can do in Americas with our activities.Key activities. One was restructuring. Nederman Insight has been disheveled. The IoT solutions has mainly been developed in Helsingborg. We have now moved the essence of that into Auburn FilterSense in Boston. So we -- instead of having 2 small organizations, we have slightly bigger organization in Boston area. And we can then capitalize on the industrial expertise that we have there. And we have moved some personnel and some in that. But mainly, we are focusing using the technical competence in Boston for that.We have also full NEO Monitors, established to use it on office where we have service, our own service, which is very important and been having, happening and hampering effect that we had to rely on external service partners. And the impossible ability to fly-in service technicians from Norway for a period, have shown that now we have our own office.We have managed to handle the supply of components. And we have been able to operate basically without any major disturbances. Luckily enough, we were very early on to try to find alternative as well as order surplus, which we normally don't do. But we beefed up our stock on special components because it's not so easy to change components in Monitoring & Control division because a lot of the products are under certain approval series, and that takes a very long time to make new ones, even if you make the tinniest change in components.
If we take the financials for Monitoring & Control Technology, organic growth, only 3.6% down despite the huge impact in Europe of the lockdowns. Currency neutral, we're obviously increasing significantly, 95.8% up. We've almost doubled the division. We now have Gasmet in this division, of course.In terms of sales, sales for the quarter increased by 143% to SEK 131 million. That -- organically, that's an increase of 11.3%. Adjusted EBITA is now at 21% versus 13.9% last year, and that's in krona, we're talking SEK 28 million in adjusted EBITA for the quarter for this division versus SEK 8 million in the quarter last year.Moving on to the Slide 9, we see some financials for the regions. What I want to say, I will not again go through all of the numbers here. It's just -- it's rather interesting to see the difference between the regions. Proportionally, APAC in the quarter 3 -- quarter 2, excuse me, was least impacted. It's obviously still our smallest region anyway. Whereas we can see quite a significant impact on order intake in both Americas and EMEA, and Sven has spoken about that.Cash flow from operations is a positive story. Compared to the same point last year, we're significantly ahead. We have a more stable cash flow from the Monitoring & Control Technology division, of course. And we've worked extremely hard on this. There's been an awful lot of focus on cash flow and operations and our working capital development, of course, as all investors would expect of us. So that has had a positive impact. And now -- right now, after 2 quarters of this year, we're -- our cash flow from operations is positive SEK 75 million versus a negative SEK 9 million, which is often the case in the first half of the year. We're not -- we're at best breakeven on cash flow from operations, just usually due to the nature of the business with the large projects.Moving on to Slide 11. Our net debt actually decreased a little bit following a good cash flow development. I'm not sure there's so much more that I should say about that, but we are still well inside our financing covenants right now.Yes, the summary for the quarter, Sven, you've been through it all, but if you give a few words on Slide 12.
Yes. If we take first division, Extraction & Filtration Technology, again, lockdowns have had a major impact, but we have seen a notable recovery during June. We'll see how that reads into the current quarter where we have a lot of vacation and other things going on, especially, Asia has been coming back.Process Technology, there has been a significant decline in demand, and especially, large investments has been postponed. Not all the decision has been postponed. And with the limited visibility, of course, people are more cautious when they take decision of multimillion-dollar investments. And a large portion of that is the new factories that -- where we are only a smaller part there. We believe that the projects will be completed, and they will continue, but it will take a couple of months before they start reopening these.Duct & Filter Technology, very similar in the market demand as Extraction & Filtration Technology. We've seen the decline. We've seen the recovery in June, and we'll see what happens during this quarter. Because what we have seen, especially in June, the number of requests and quotations has increased significantly over the very low level in the beginning of the quarter.Monitoring & Control Technology, largely positive development. As we mentioned before, we'll see if we can -- how much we can continue to grow that part.For the group, I would say, good profitability in very difficult circumstances. We have made a program with the restructuring program, and it will give us a stronger organization, a more efficient organization when the demand comes back. But what is also very important to note, we have launched new, call it, smart filters. We have had, of course, as I mentioned, hampered a little bit by the closedown of all large meeting points and exhibitions around the world. But still, we are there. We are introducing new products. We are continuing to develop and especially in the line of the new digitalization era, and we continue that program significantly. And I think that's a strength -- sign of strength. We will be even stronger when demand comes back in this.
Finally -- or not finally, on Slide 13, the outlook, which we've tried to break down a little bit for you here. It's -- we've got a restricted view. It's very difficult to make. We state long-term forecast for economic development, but I would also say, to some extent, the short-term forecasting is rather difficult. Q3 is going to be challenging. We don't anticipate a rapid economic recovery, but it will be a negative impact on the group sales in the third quarter of the year if we compare versus Q3 2019. We're not back up to the old levels of economic activity. It's very fair to say.If we take a more favorable view on things, the positive effect from the lockdowns is that they've shown what the world can look like when the air is not being polluted by industrial emissions. And this is what we are working to creating at Nederman is a world that's not impacted by industrial emissions by an effective industrial air filtration. We've demonstrated -- we demonstrate every day that this can be achieved, and every installation that we implement works towards this. And I think this awareness of it is definitely a good thing for Nederman and the industry in which we operate.We were also -- we've got a high level of readiness for the future. We've got a -- we've shown that we're prepared to act and address the development base through -- from the pandemic but also looking forward -- with a forward-looking approach to it with this development of -- into divisional development of -- with Monitoring & Control Technology together with the other divisions, giving us more modern, future-proof filters and filter systems. That will, we think, again, be a positive going forward.Slide 14, the financial calendar, as you know, the interim report for Q3 will be released on the 23rd of October. We will also release the Q4 2020 report on Friday, the 12th of February next year.We can now open up for any questions that people listening may have.
[Operator Instructions] Okay. There appears to be no registered questions, so I'll hand back to the speakers for any other remarks.
Thank you very much for spending the time listening, and we wish you a good day and hopefully, a good summer. Thank you very much.
Thank you. This now concludes our conference call. You may now disconnect your line.