Nilfisk A/S

Ledelsesberetning

EUR million 20242023202220212020Income statement Revenue 513.2490.9566.5549.3420.3Operating profit/loss 19.30.88.529.6-13.0Financial items, net -14.2-3.3-9.8-15.5-25.5Profit/loss before income taxes 80.239.034.558.5-26.5Profit/loss for the year 73.638.234.956.4-25.1Balance sheet Total non-current assets 510.1515.0544.0550.3568.5Total assets 701.1665.5716.3729.9702.5Investments in tangible assets 3.37.53.21.714.3Equity 304.7230.7204.3163.9102.0Key ratios Operating profit margin % 3.80.21.55.4-3.1Return on equity % 24.216.617.134.4-21.9Solvency ratio % 43.534.728.522.514.5The ratios have been prepared in accordance with the recommendations and guidelines issued by the Danish Finance Society. Significant events in 2024 The performance of Nilfisk A/S is to a large extend following the performance of the Nilfisk Group due to Nilfisk A/S’ position in the Nilfisk Group structure, hence Nilfisk Group events are deemed relevant to describe in this section. The first half of 2024 began with good momentum, delivering results within the trajectory required for Nilfisk Group including Nilfisk A/S to meet its initial financial outlook for 2024. In third quarter, demand slowed down in the Americas, which had an adverse impact on results in the second half of the year. As a result of the thdemand slowdown in the Americas – as well as market headwinds in APAC – on October 24, 2024, Nilfisk Group revised its financial outlook downwards for organic revenue growth and the EBITDA margin. After the downwards adjustment the Board of Directors and the Executive Management Board ducted a thorough threview of the company’s financial targets for 2026; and on November 14, two of three financial targets for 2026 were removed. In connection with this decision, Nilfisk announced that it would be implementing structural efficiency improvements across the group, which commenced towards the end of 2024. Despite macroeconomic challenges, the company delivered results within its updated guidance range for 2024, expanded its gross margin and EBITDA margin. Since the beginning of 2021 Nilfisk A/S has increased its investments into Research and Development, which yielded several positive results in 2024. This included the VP 300 R, SC550, SC25, MC1C and MC2C, VBH 120, Mini IVS, and the Nilfisk Dryft. The company launched new products at key industry events – including Interclean in Amsterdam in May 2024 and at the ISSA in November 2024 in Las Vegas – where customer feedback was positive. New products were shipped in Q3 2024 and had a positive impact on Nilfisk Group performance in the second half of the year, particularly in the EMEA region and within the Consumer Business. In Q3 2024, Nilfisk A/S completed the rollout of its Global SAP Template in the US. The comprehensive SAP-based platform integrates Sales, Service, Operations, and Finance across the business; and marked a notable shift in how Nilfisk Group operates, bringing Mexico, US, and EMEA, into a single platform. The platform is designed to improve data management, enhance collaboration, and streamline operations, allowing Nilfisk Group to scale more effectively. Further investments into digitalization and improving Nilfisk Group’s ways of working were also implemented throughout 2024. In Q3 2024, Nilfisk A/S also successfully refinanced a term loan with its bank consortium through a debt capital market product called a Schuldschein loan. This Schuldschein loan of EUR 225 million provides Nilfisk A/S with diversity in debt maturity (3, 5, and 7 years), plus a higher grade of financing flexibility for future investment opportunities when they arise. The Schuldschein loan was taken out with the aim of supporting long-term growth in the business. In 2024, Nilfisk Group took another step forward on its sustainability journey. In May 2024, Nilfisk Group was listed among Europe’s Climate Leaders 2024, as presented by the Financial Times. Furthermore, Nilfisk Group was awarded an EcoVadis Gold Medal for a third consecutive year and upheld the strong carbon disclosure score from CDP for a fifth consecutive year of A-. Scope 1 and 2 greenhouse gas emissions were reduced by 22% in 2024 compared to a 2019 base year. Scope 3 greenhouse gas emissions intensity from the use of sold products was reduced by 39% in 2024 compared to a 2021 base year. Development in the year Nilfisk A/S revenue increased by 4.5% to 513.2 mEUR, gross profit increased by 16.4% to 148.1 mEUR and Result for the year increased by 92.7% to 73.6 mEUR. Result for the year was positively affected by the higher revenue, primarily driven by the EMEA region and by higher gross profit. It was also positively affected by increased dividend from the subsidiaries. Management considers the financial result for 2024 satisfactory. Key accounting estimates and judgments When preparing the financial statements, the use of reasonable estimates and judgments is an essential part. Given the uncertainties inherent in our business activities, the Executive Management Board makes a number of accounting estimates and judgments. The estimates and judgments are based on assumptions which form the basis for recognition and measurement of our assets, liabilities, cash flows and related disclosures. Estimates and judgments are regularly reassessed. Key accounting estimates are expectations of the future based on assumptions, that to the extent possible are supported by historical experience, customer demands, competitor actions and other reasonable expectations. Estimates, by their nature, are associated with uncertainty and unpredictability. The actual amounts may differ from the amounts estimated as more detailed information becomes available. The Executive Management Board believe that the estimates are reasonable, appropriate and the most likely outcome of future events under the given circumstances. Key accounting judgments are made when applying accounting policies. Key accounting judgments are judgments made, that can have a significant impact on recognition, classification and disclosures of amounts in the financial statements. Reference is made to note 20 for details on areas subject to significant accounting estimates and judgments. Nilfisk’s high-impact business risks Description of the five risk areas identified as high-impact risks and related risk mitigation. Risk Risk description Risk mitigation Commoditization If we fail to adapt to changes in customer behavior and We monitor customer behavior via segment trends and development of our products and services, our ability to purchasing loyalty. Nilfisk responds to changes in customer and competition execute on strategy will be impaired and the long-term behavior with a strategy focused on lifecycle services, financial results of the Group will be impacted. Customer customer-centric innovation, and our sustainability demand is changing towards low-price “good-enough” commitment. With our value proposition and strategic products. At the same time, competition is intense, and low-priority to lead with innovation and sustainable products, we cost competition might reach a level at which customers add value beyond the machine and deliver cleaning solutions would be reluctant to pay a premium for higher-quality that blend into operations while integrating digital services, products. The Nilfisk Group’s competitors include various collectively increasing the value of clean. We leverage large global and regional enterprises as well as smaller strengths from our quality-focused brand and our wide regional or local companies. Our operational results and product portfolio range with broad customer access. We financial position may be negatively impacted if Nilfisk scale benefits due to our size and geographical coverage. products do not satisfy customer demand. Economic and Adverse and unstable economic conditions including risks of We closely monitor activity in our markets and the global global geopolitical conflicts may negatively impact our economic situation to be able to respond in a timely manner political financial position by increasing cost and decreasing demand to any adverse developments. We also mitigate possible instability for Nilfisk products affecting sales negatively. Meanwhile, negative macroeconomic changes by hedging and major social and political instability and changes may disrupt maintaining variability in our cost base as well as establishing both the cleaning industry and our business.a certain degree of flexible production footprint.Cyber and IT Nilfisk’s information technology systems are subject to risk of We have implemented procedures and management damage or interruption from power outages, computer and processes to ensure the necessary availability of critical IT security telecommunications failures, malware, catastrophic events, systems and services. Furthermore, we have developed and and user errors. Errors made due to lack of user awareness actioned an IT security policy to prevent intentional damage or deliberate misuse, such as individual attempts to gain to our systems and limit access to critical data and systems. access to systems, are among the risks Nilfisk faces. Finally, initiatives have been planned and implemented to Inadequate management of changes to systems or secure the digital business, strengthen the infrastructure inadequate service together with ineffective measures to platform, enhance IT services, and ensure recovery business deter, prevent, detect and react to such attempts might continuity plans. expose Nilfisk to risks. In addition, Nilfisk is faced with the threat of security breaches (viruses, ransomware, etc.) such as attempts to hack our information technology systems.Failure to Technological developments and improvements are key to As a part of our strategy, we established a strong value remaining competitive in the markets. If one or more of the proposition linked to strategic priorities and optimization innovate Nilfisk competitors are able to develop and gain exclusive opportunities, among other things focused on customer-access to groundbreaking technologies, this could make it centric innovation and leading with sustainable products, difficult or increasingly costly for the Nilfisk Group to optimizing customer value while also ensuring technology compete effectively. enabled value creation. We consistently monitor customer trends against preferred technologies and cooperate with leading technology partners and universities.Data integrity, There is a risk of suboptimal decision-making, potential loss In addition to an ongoing assessment of our IT infrastructure of business, financial losses, or reputational damage due to a and systems, several initiatives have been launched. These quality and lack of accurate, reliable, timely and complete data. initiatives include a master data improvement project, privacy standardization of ERP systems (SAP), and standardization of processes. The initiatives are progressing well. Failure to protect data privacy and comply with legislation (GDPR) would also have a negative impact on our business including possible legal penalties, loss of vendor or customer To protect data privacy, a number of systems have been trust, and reputational damage. implemented, e.g. Workday, Salesforce.com, and Service Max. The data in the systems is audited on a regular basis and employees have received adequate training in data management. Outlook The range for Nilfisk Group organic revenue growth is expected to be 1% to 3%, driven by continued positive momentum in EMEA, supported by the launch of new products in the second half of 2024. A normalized order book in the Americas is expected to influence the Professional and Service Businesses, while the outlook for Consumer and Specialty remains strong. Potential trade barriers present additional uncertainty for the Nilfisk Group, hence also Nilfisk A/S. The range for the Nilfisk Group EBITDA margin before special items is expected to be 13.0% to 14.0%. The range for the operating profit/loss for Nilfisk A/S is expected to be between 10 mEUR and -10 mEUR. The financial outlook for 2025 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  Limited impact from tariffs Events after the balance sheet date Please refer to Note 18 Contingent liabilities, securities, and contractual obligations. On January 31, 2025, the Board of Directors appointed Elsie Yiu as the company’s new CEO replacing Hans Flemming Jensen. On March 24, 2025, the Board of Directors appointed Carl Frederik Wilhelm Bandhold as the company’s new Deputy Chair of the Board of Directors, replacing Reinhard Josef Mayer. Other than as set out above, we are not aware of events subsequent to December 31, 2024 that materially affect the assessment of the financial statements. Knowledge resources To ensure high productivity and competitiveness Nilfisk A/S use the latest technology in the production, which demand resources with a high competence level. Consequently, it is important for Nilfisk A/S’ to attract and maintain talented resources both from an internal workforce perspective and from external business partners, carrying a high level of engineering expertise within innovative cleaning products and solutions, and additional capabilities that supports our growth journey. Development activities In the financial year 2024 Nilfisk A/S spent 32.0 mEUR on development projects and software compared to 22.3 mEUR in 2023. The increase is in line with Business Plan 2026 where investments into modular platforms and software development is part of the strategic priority ‘Lead with innovation and sustainable products’.

Beskrivelse af virksomhedens væsentligste aktiviteter

Core activity, research and development and knowledge resources It was in 1906 that Peder Andersen Fisker established Nilfisk, inspired by his love of knowledge and ambition to build a company that made the best electrical engines. Since then, we have been committed to delivering innovative cleaning solutions and growing our business to lead the industry. Nilfisk A/S’ activities are unchanged compared to 2023.