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Good morning, and welcome to the Nederman Holding Q2 presentation for 2022. [Operator Instructions]. Today, I'm pleased to present CEO, Sven Kristensson; and CFO, Matthew Cusick. [Operator Instructions] Please note this event is being recorded.
And with that, I will hand over to the speakers.
Thank you very much, and good morning, everyone, and welcome to the presentation of Nederman Holdings Interim Report for Q2 2022. Second quarter, as we have had on the headline, we have had a strong momentum with, we would even say, excellent order intake in growth, and we also can see a significant demand for our digital and energy savings solutions. Coming back to that slightly later.
We have also had a strong sales growth. And we've got projects booked across a wide range of industries. And our focus on recyclability, recycling industries, et cetera, and energy sector has paid off. We have managed to increase profitability, and we have added a small acquisition in Australia, Ezi-Duct, in this quarter.
Having said that about a very strong momentum, there are continued concerns. There are tangible supply chain problems and that has impacted sales negatively. We see a clear cost inflation, it's energy, it's material, logistics and also salaries in some areas. There is also component availability challenges in -- it's something that we have to spend quite a lot of time to secure that we can supply to our customers.
And then, of course, the geopolitical concerns continue. We have a full fledge war in Europe which could have an impact. And again, what has had a major impact on second quarter, the COVID-related lockdowns in China that now have eased a little bit, but again, we've got it yesterday reported there were partial lockdowns in Shanghai again.
Moving on to Ezi-Duct. Ezi-Duct is a small company. We acquired it in April and we acquired the assets and operations, and we have here a company that manufactures and supplies ducting and some fume extract for the Australian market. They have 3 sites in this continent. But it's a small company, but it gives us a further base for Nordfab and also Nederman. The integration has completed and it's now trading under the Nordfab brand. A small company, approximately 30 employees in these 3 different sites in Australia.
If I move on to Slide #4, and summarize the orders and sales. Good order intake is the headline and the backlog continues to build, whether building backlog is good or bad, that's debatable. But we've had an extremely good order intake month -- sorry, quarter, quarter 2. So SEK 1.39 billion in sales -- in orders versus SEK 1.058 billion in the same quarter last year. Currency neutral, that's 23% up.
Sales in the quarter were 12% up versus the same quarter in 2021. SEK 1.172 billion was the figure there. For the period for January to June, order intake, currency neutral, is actually up by the same percentage, 23%, SEK 2.734 billion there. Sales almost SEK 0.5 billion lower, so we built significant backlog is what we can say there, SEK 2.266 billion for the first 6 months of the year, 15% up versus last year.
If you look -- if you see on the chart on the bottom of Slide 4, the orders on the left-hand side, you can see that we've actually, on a rolling 4 quarters basis, now actually topped the SEK 5 billion mark. We've had 3 very strong order intake quarters in a row now. On the right-hand chart, the sales, we see that we're not quite up to that SEK 5 billion level yet. And the conclusion is, of course, that we have built some backlog and have a backlog -- a solid backlog going into the second half of 2022.
Slide #5, profitability. In the second quarter, adjusted EBITA was SEK 125 million versus SEK 113 million in the same quarter last year. That gives a margin of 10.6% versus 11.6% in the last -- in the same quarter last year. Significant change in our mix is one thing that we -- of sales between the divisions is one thing to say there. And of course, challenges with the supply chain and slightly frustrating level of sales is the main contributor to the reduction there.
After adjusting for this Norwegian pension scheme, free ride, we got over roughly SEK 26 million on the profit after tax last year. Profit after tax increased by -- to SEK 75 million from SEK 56 million for the same quarter. Earnings per share SEK 2.13 versus SEK 1.61 for Q2 last year. EBITA for the year year-to-date -- adjusted EBITA for the year-to-date, SEK 240 million now versus SEK 214 million last year.
Margin currently 10.6% year-to-date and 11.6% last year, the same as for the quarter. Profit after tax, SEK 145 million is a clear increase in earnings per share, also significantly up to SEK 4.14. We see on a rolling 4 basis, we are clearly at the SEK 500 million on the adjusted EBITA as well.
The final slide, purely financial, #6, where we see cash flow and net debt. We had a good quarter again, and the cash flow from operations was SEK 148 million, slightly lower than the very strong quarter 2 last year. Remember, in 2021, we were seeing a significant recovery in cash flow from the Process Technology division where we had a very low level of order intake through the second half of the heaviest pandemic year of 2020. In 2021, we started receiving down payments on a significant number of larger orders. The progress has continued on order intake. But of course, there was not -- it wasn't -- we were not recovering from such a low level.
Cash flow year-to-date, SEK 140 million versus SEK 254 million last year. And on a rolling 4 quarters, the cash flow from operations is still above SEK 400 million. Net debt has reduced in the past 12 months from SEK 1.24 billion to SEK 1.13 billion. It must be remembered that in that period, we are also actually paid out approximately SEK 160 million in dividends as well. So a rather heavy dividend payout and a very good cash flow means reduced net debt.
On to Slide #7 and the Extraction & Filtration Technology, Sven.
Yes. The Extraction & Filtration Technology as you know, we are -- it's the largest division and it sells mainly to different engineering companies, it's like -- and its energy sector, it's wood, it's welding, et cetera. . The development during the quarter is that we have had a good order intake in all channels and in most markets here. We got 6 larger orders. It seems like some of the postponed orders from earlier years has now come in. We've seen that we have a good momentum in our chase for more service and aftermarket revenues. And we have had and we have a very strong order backlog which is, again, 2 side and so on, because we would have liked to deliver more. We have also, in this division, seen challenges mostly on transportation means in Europe, et cetera, et cetera.
In EMEA, we have had a positive trend in most markets and good growth, as I mentioned, in service and also selling solutions. We booked 4 major orders and it was defense industry, it was aerospace, window manufacturing, also wood. And we also had a big order for a solution for a Formula 1 motor sporting team, which we're not allowed to tell you who it is.
In Americas, we had very good order growth in all markets and channels, and we had also here a good growth in our aftermarket, and this is much linked to the digitalization. 2 very good orders in wood and a number of other small and midsize. We are enhancing our position as the absolute #1 in the serious wood market in Americas.
APAC, we had a small growth. The continuous disappointment is, of course, China because it's remained very weak. It's been locked down, virtually locked down, so not much has happened in that area and that has had a negative impact.
Again, we have some key activities. We have taken the decision to build a new facility in Helsingborg, Sweden, in order to optimize logistic flow in factories. We're currently in 2 locations. We should increase production capacity and efficiency. And we are also building test and innovation center where we can further test our products. It's not so that we will have all R&D centralized in no way, it will continue as it is. But we will increase our capability, especially for the EFT division and testing capabilities and working together with the Insight digitalization measurement, et cetera. But we will also be able to do long-term tests here. We expect to move in the first half of 2024.
We continue to work to counter freight problems, et cetera, and other problems that occurs. And as the distribution head says, we adapt, improvise and overcome the hurdles as best we can.
Briefly on the financials for Extraction & Filtration Technology. Order intake increased by 18%, up to SEK 595 million in quarter 2. Sales, as we mentioned, grew SEK 475 million. It's only 1.5% growth so we have a clear backlog build there. Adjusted EBITA was in line with last year at approximately SEK 80 million. If we take for the year-to-date, growth in order intake is 16% and sales is 6.5%. Again, a clear backlog build. We are SEK 16 million higher in adjusted EBITA for the year-to-date. And the EBITA margin. very much in line with where we were at this point last year, which is positive considering the challenges with inflation and other costs, for example. We will move on to Process Technology on Slide #8 now, Sven.
Yes. During the quarter, we continue to have a very strong orders received. We have increased sales as well and accelerated project execution. Still due to the lockdowns in China, we have had some difficulties. We have managed to move some to India and other places to get things out. But again, increased sales. And we have continued our effort to grow the service and aftermarket business, and so we did also this quarter. Thus giving better profitability, and we have a very strong order backlog. It's actually more than double that from a year ago. However, we work hard to get that and convert that into sales.
Textile and fiber, we have, again, good orders received in all markets with one exception, I'm getting -- boring you, but saying that China is a problem, but it is because of the lockdowns. Increased investment in markets such as Turkey, India and also parts of Latin America. And our Indian business here in textile and fiber are developing very well. We also received a significant non-woven order in U.S. in the hygiene sector. Non-woven is related very much to where we have a very strong position of the acquisition of Luwa in spinning, weaving mainly.
But the technology is quite similar. And we have, over the last 2 years, developed the technology and now are seeing some orders and further interest since we have launched the new lines, new technology with significant technical improvement compared to the traditional way of non-woven factories. Combining that with our digitalization, we have seen a growing interest.
If we go to a more traditional foundry and smelters [indiscernible] application, we have seen increased demand from recycling industries in Europe. Here, we have areas where we have historically been very successful in aluminum recycling, but also in some other nonferrous technologies. And several major orders were secured. And again, we made some invoice in Turkey and a big foundry customer in our other areas. And we are continuing trying to launch our standardized model into the U.S. market, which have been used to using other technologies.
In customized solutions, we have had a number of medium-sized orders, and we have a strong quotation pipeline that we hope will materialize later during the year. Key activities is trying to hang on to price adjustment and make sure that we can maintain profitability or grow profitability in the market, for this project also with the transportation, which has been an issue over this period.
We have continued challenges and they remain in China, as we said. We have had lockdowns in our 2 factories for 2 months. We have had shipping problems in like shutdown Shanghai port for a long period. This, in combination, you've seen that our order backlog has grown faster. And we will have to handle that and we are doing our outmost to convert the strong backlog into sales during the coming quarters.
Thank you, Sven. On the chart on the top right of Slide 8 demonstrates what Sven was just referring to quite clearly. We've got -- we've clearly got -- we've got order intake in the last -- each of the last 6 quarters Has clearly exceeded sales and the backlog has increased accordingly. . Financials on the bottom section of Slide 8, we can see that order intake in the quarter grew by 34% to SEK 461 million. Sales SEK 383 million is 23% up. Even if we're frustrated, it is a 23% growth, it must be pointed out. And adjusted EBITA in the quarter SEK 14.4 million, which is 3.8% versus just a very modest profit in the first -- in the second quarter last year. January to June, order intake growth, currency neutral, is 33%. Sales, 28%, up versus the first half of last year. And EBITA now SEK 25 million, is 3.4% versus SEK 8 million in the first half of 2021.
If we move on to Slide #9, it's Monitoring & Control Technology.
Yes, Monitoring & Control Technology second quarter. We had a good order intake, especially in Americas. The restructurings we're doing there, by adding more sales going more direct and combining the MCT and building from the strong position we've had with AFS in Boston here is paying off. However, the lockdowns and the problems of -- even if we are very successful so far, we are behind plan due to the earlier restrictions. But we are speeding up now when U.S. has opened up. We have severe challenging obtaining components within normal time frame, and that has a negative sales impact there. We are doing what we can and we are handling it. There are some easing in some areas regarding this. We have, on the positive side, an all-time high order backlog and that bodes well for the coming quarters.
Going into the different regions, EMEA, orders received and sales in line with Q2 2021. The activity slowed in some markets due to the war in Ukraine. And Gasmet had continued strong growth in Germany and the U.K., where we have added resources and are building the MCT sales organizations in these 2 important market. We are less and less dependent on distribution market and going more and more direct. And we see that, that pays off so far.
APAC, it was in line with Q2. NEO Monitors was doing relatively well, and that comes from a hydrogen new product. Gasmet orders received and sales declined, and that has to do with the lockdowns. We have a large operation in Hong Kong, our sales and service organization, but the lockdowns has prevented us from shipping and continue our work. Yes, negative order impact in China, disruption deliveries and so on.
Americas orders received and sales grew versus the same period last year, and we are seeing a growing activity in line with the customers. All 3 companies, so subcompanies, NEO Monitor, Auburn Filter Sense and Gasmet continued with a very positive trend.
Significant continued activity in managing supply chain issues. This is a division that is most hurt because it is the electronics side, the specialty electronics that cannot easily be shifted. We are trying hard to keep up with the price adjustment to counter cost inflation from components. And again, the integration of the small acquisition late last year of Energy Save System is proceeding according to plan. And we will have integrated that capability, the logos, and it will be shown in Germany and Akerman between IWS and the good fare in Atlanta late August on both this. So we are looking forward to good reviews on that way.
Financials for Monitoring & Control Technology. Order intake growth in the quarter was 6.1% versus a very strong -- must be pointed out, a strong Q2 in -- already in 2021. Sales up only 1.3% up. And we see this difference. If you look at the year-to-date, currency-neutral order intake growth is 9.3%, which is strong in a division that was not impacted as badly by COVID as the others.
However, the sales -- the frustration being it 1.1% or currency-neutral growth versus the same 6 months last year. Adjusted EBITA in the quarter, still SEK 26 million, is 17.7% that is lower than where we were last year on SEK 32 million and 23.5%. And year-to-date, we had -- we were on SEK 44 million in adjusted EBITA versus SEK 53 million at the same point last year. Moving on to Duct & Filter Technology on Slide #10, Sven.
Yes. Duct & Filter Technology Q2, we have had a positive development in both segments in, I would say, all regions, especially doing well on the filter side. Menardi. Order received and sales increased even versus a very strong first quarter in this year. Inflation and price pressures squeezing margins.
Nordfab, strong orders and sales versus Q2. Significantly rising cost for material, also personnel and maintenance, impacted profitability. Last year, we were able to ride the wave increasing prices and still postponing the incoming price adjustment for steel, and that impacted very positively in the period. Now we are more in line with the -- or actually a little bit overpaying. So this is the reason for the change in margin here.
We have had a very good increase in orders received, both on the European market and the U.K., in particular. And we are continuing to building the capacity here. We also saw a continuous good development of high factory for the Asian market, and especially the domestic Thai market.
For Menardi, the filter business, we had good growth and good orders received in both U.S. and also in Europe. The quarter was very good in U.S., and we have seen a clear increase in orders received towards the end of the quarter. Therefore, more broadly in April and more questions.
Again, the acquisition of Ezi-Duct and formation Nordfab Ltd in Australia, provides a small platform to grow in a very interesting high-priced market, which Australia is. We are currently investing and bringing them into our ERP system, making it a professional company. And from there on, early next year, we expect to start our growth journey there.
We have, as mentioned before, taken the decision to increase our capabilities in Thomasville for Nordfab, and they have now started to lay the foundation. And as mentioned, in first quarter next year, we will be ready. This will pave the way for Nordfab new concept on the aim of delivering to customers within 24 hours will be strengthening of an already very strong market position in that sense. We will also upgrade machinery as we go.
The new automated ducting line in Denmark, working at full capacity. That has, again, a positive impact. The interactive 3D tool that we bid less than a year ago, we won the award in innovative award is now also turning to metric and is launched -- started to be launched here in the European market. And again, we continue to monitor, adapting to the changes, the inflationary cost, material cost, et cetera.
The financials of Duct & Filter Technology then, incoming orders of SEK 174 million, it's a 36% currency-neutral growth versus Q2 last year. Total sales were SEK 190 million, which is 29% of currency neutral versus Q2 last year. Adjusted EBITA of SEK 28.2 million versus SEK 24.7 million in the same period last year. The margin down somewhat to 14.8% versus 18.8% in the Q2 last year.
January to June, currency-neutral growth in orders is 36%, sales 27%. Adjusted EBIT of SEK 60 million now versus SEK 50.6 million in the first 6 months of last year. So good SEK 10 million more coming from this division. The EBITA margin 16.5% for the first 6 months of 2022.
If we sum up on Slide 11, Sven.
We summarize this with the headline strong momentum. We continue to advance in the global market. We have orders and sales growth in all 4 divisions. Extraction & Filtration Technology had strong improvement in orders received, and it was both a solid base business and a number of larger orders. Process Technology continued to grow, with orders and sales increasing despite the negative impact of lockdowns in China. Profitability clearly improved and cash flow was very good.
Duct & Filter Technology continued a strong development. Higher material costs contributed to reduced EBITA margin, though EBITA and in SEK continued to increase. Ezi-Duct was acquired, and we are now fully involved in the integration. Monitoring & Control Technology delivered stable performance in challenging market situation. Orders and sales increased modestly even if component challenges hampered sales.
Some continued concerns. Tangible supply chain problems. It has had, as we mentioned, impacted sales negatively. There is a clear cost inflation on energy material, logistics, salaries, et cetera. And again, component availability. Geopolitical concerns continue and COVID-related lockdowns in China is still a challenge we have.
Moving forward to the outlook. In short term, the recovering demand continued during the second quarter. Our base business and strong digital offering enable us to assert ourselves well in the current market, and demand is growing for projects. We do see that supply chain problems and the high prices of energy materials, logistics are impacting customers' investment decisions. There is clear likelihood of continuous geopolitical uncertainty. And overall, we remain cautiously optimistic about future quarters in view of, among other things, our strong order received in recent quarters.
For long term, Nederman's long-term potential continues to strengthen. Insight into the damage that poor air does to people is increasing. Nederman has a leading offer within industrial air filtration, a key role to play and almost unlimited possibilities for growth. What is needed is even more political will throughout the world to use regulations and incentives to reduce risk for millions of people dying prematurely each year from breathing in dirty and hazardous air.
Financial calendar is the final slide here. The interim report for Q3 will be on -- released on the 24th of October this year, and our year-end report will be on the 16th of February 2023. . And with that, I think we can now open up for any questions that listeners may have.
[Operator Instructions]
If there are no questions, we'll be -- yes, sorry?
Yes, sir, we don't have anyone in the question queue.
Okay.
Would you like to give a closing comment?
Yes. No. We thank you for having listened to this presentation and wish you a continuous good day. Thank you very much, everybody.
Thank you very much. With this, we conclude today's conference call.