ANNUAL REPORT 2021
Committed
to clean
Nilfisk Holding A/S
Kornmarksvej 1
DK-2605 Brøndby, Denmark
Company reg. No. 38 99 88 70
9%
6%
85%
9%
61%
30%
100 +
Countries
Our products and services are sold in more
than 100 countries across the globe.
40+
Sales companies
We have sales companies in more than 40
countries around the world.
10
Manufacturing sites
Asset-light assembly-focused production.
Main manufacturing facilities located in the US,
Mexico, Hungary, Italy, and China.
presence
We are
a world-
leading global
provider of
professional
cleaning
products and
services
AT A GLANCE
Share of revenue 2021 Share of revenue 2021 Share of revenue 2021
Our sales Our geographies Our key markets
Branded professional
Consumer
Private label and other
Europe region
Americas region
APAC, Middle East and Africa region
4,900
Employees
Sales & Service Operations
Business
Support
42% 42% 16%
25%
12%
11%
5%
5%
Founded in
1906
It was his love of knowledge, paired with
the ambition to build a company driven by
technology, that inspired Peder Andersen Fisker
to establish Nilfisk in 1906. Since then, we have
been committed to delivering innovative cleaning
solutions to market, and growing our business to
lead the industry.
USA
Germany
France
United
Kingdom
Denmark
approximately
994.9 mEUR
Total revenue in 2021
In line with the preliminary numbers
announced on January 13, 2022
NILFISK ANNUAL REPORT 20212
Financial StatementsManagement Review
34% 22% 14% 30%
Clean is
changing
The COVID-19 pandemic has altered many
aspects of our lives, making us more focused
on cleanliness and hygiene. Cleanliness is
now business-critical for all industries, and
the process of cleaning is moving from
backstage to center stage. This is not a
small adjustment, it is a paradigm shift that
will require many companies to completely
rethink how they approach the concept of
cleaning.
AT A GLANCE
59%
Of respondents in a comprehensive Nilfisk
customer study state that the business-
criticalness of cleaning has increased
significantly.
79%
Of the respondents believe their business
will maintain higher standards of cleanliness
beyond the COVID-19 pandemic.
Our solutions
With a product portfolio spanning from
advanced industrial vacuum solutions to high-
pressure washers and floorcare equipment,
Nilfisk has a unique range in terms of breadth
and depth.
The industries
we serve
The need for cleaning is universal, and the effect
of clean is valuable to our customers everywhere.
Nilfisk serves customers across the world
targeting strategic customer segments and key
applications:
• Agriculture
• Automotive
• Building & Construction
• Contract cleaners
• Education
• Food & Beverage
• Healthcare
• Hospitality
• Iron & Metal
• Manufacturing
• Offices & Public buildings
• Pharma
• Retail
• Warehousing & Logistics
Floorcare
Vacuum cleaners
High-
pressure
washers
Aftermarket
Scrubber dryers, sweepers, combination machines, carpet
extractors, burnishers.
Commercial vacuum cleaners, wet
& dry vacuum cleaners, industrial
solutions, vacuum cleaner for
domestic use.
Professional mobile
pressure washers hot/cold
water, stationary pressure
washers, petrol/diesel-
driven pressure washers,
high-pressure washers for
domestic use.
Service, parts and accessories
Revenue
by products and services
NILFISK ANNUAL REPORT 20213
Financial StatementsManagement Review
Nilfisk at a glance
2021 in brief
Letter from the Chair
Letter from the CEO
Financial highlights
5-year consolidated financial highlights
CSR highlights
Our strategy
Markets and trends
Business plan 2026
Outlook for 2022
Financial targets for 2026
2
5
5
6
7
8
9
10
12
13
17
17
18
18
19
20
22
23
24
25
26
27
28
29
30
30
31
33
34
36
37
41
43
45
47
Consolidated financial statements
Income statement and statement of
comprehensive income
Statement of financial position
Cash flow statement
Statement of changes in equity
Notes to the consolidated financial statements
Parent company financial
statements
Management’s statement
Independent auditor’s report
49
50
Management
Review
Financial
Statements
Capital allocation
Sustainability targets
Our business
Solutions
Channels
Markets and segments
Operations
Our results
Business performance
Europe
Americas
APAC
Consumer
Private label and other
Financial review
Q4 Performance
ESG performance
Our governance
Corporate governance
Board of Directors
Nilfisk Leadership Team
Risk management
Shareholder information
Page 17
We expect demand to continue
growing in 2022
Page 34
Our ESG data overview provides transparency
for all stakeholders into our CSR work
Page 12
The pandemic created increased awareness
of the value of clean among our customers
51
52
53
54
98
104
105
NILFISK ANNUAL REPORT 20214
Financial StatementsManagement Review
Preparing for
long-term,
sustainable
growth
We are confident that
Nilfisk can build on its
strong 2021 performance.
The solid implementation
plans substantiating the
company’s growth targets
and the introduction of
a meticulous execution
focus, will ensure that we
achieve substantial long-
term value creation.
In 2021, Nilfisk returned to growth. This growth was
broad-based, across regions and business segments.
Organic revenue increased by 20.7%, delivering total
revenue of 995 mEUR, and an EBITDA increase of
44% generated 144 mEUR. This led to an EBITDA
margin before special items of 14.5%, a record level
since the IPO in 2017.
The year 2021 marked a fundamental recovery in our
markets following the downturn in 2020. Beyond this
market recovery, our initiatives to gain market share
in the US and to grow with large strategic accounts
yielded above market growth for Nilfisk. We are
pleased to see the company achieved 2021 sales
above the 2019 level. Driven by rising labor costs and
a worsening labor shortage, the global market for
professional cleaning equipment is a growth industry.
The COVID pandemic has further enhanced the
value of clean and accelerated the industry’s growth
momentum. New technologies and service offerings
allow for higher customer value creation.
As a global market leader in the professional
cleaning equipment industry, Nilfisk is well positioned
to benefit from these macro trends. We see a
fundamental opportunity for long-term sustainable
growth and value creation.
Change in leadership and solid new five-year
business plan in place
In May 2021, the Nilfisk Board of Directors
announced an important change in the company’s
leadership with the arrival of Torsten Türling as
CEO and Reinhard Mayer as CFO. Both leaders have
substantial prior experience in successfully executing
performance improvement programs.
This new Nilfisk leadership team is committed to
improving underlying performance and generating
the organic growth needed to become the recognized
leader in the professional cleaning equipment
industry. During the second half of 2021, the Nilfisk
Leadership Team conducted a rigorous strategy
review to decide on future strategic priorities. The
process helped to identify untapped profitable growth
opportunities, but also to reflect upon past execution
shortcomings.
The conclusions of the strategy review have been
captured in a solid five-year business plan focused
on enabling long-term sustainable growth as well as
detailing the roadmap for successful implementation.
At the same time, Nilfisk believes it is our
fundamental responsibility to lead the way on
environmental, social, and governance related
matters (ESG). We have enhanced our commitment
to ambitious carbon emission reductions by 2030. In
addition, we have committed to wider sustainability
targets on important social parameters.
In this Annual Report, we are pleased to share an
outline of our enhanced sustainability targets as well
as the key value creation levers and the related mid-
term financial targets of the new five-year business
plan. The Board has made clear that strengthening
the company’s capability to execute its plans is
fundamental and key to success. We know this
won’t happen overnight. We are, however, confident
that based on the solid implementation plans
substantiating the company’s growth targets and
with the introduction of a meticulous execution focus,
Nilfisk can build on its strong 2021 performance and
achieve substantial long-term value creation.
I would like to thank our shareholders for their
continued support. Your feedback was instrumental
in setting the right ambitions for Nilfisk’s future. I
would like to thank our customers for their continued
loyalty, and I would like to thank our employees at
Nilfisk for sustaining a high level of performance
and flexibility throughout 2021, which displayed the
dedication to serving our customers despite the
challenges of these times.
On behalf of the Board of Directors,
Jens Due Olsen
Chair
NILFISK ANNUAL REPORT 20215
Our governance
Financial StatementsManagement Review Our resultsOur businessOur strategy2021 in brief
5-year consolidated financial highlights CSR highlightsFinancial highlightsLetter from the CEOLetter from the Chair
Strengthening
execution
capability
Nilfisk demonstrated a
remarkable recovery in
2021, the result of an
amazing performance by
our Nilfisk team members.
They remained dedicated
to serving our customers
and to finding solutions
at a time of supply chain
constraints, and through
the ups and downs of the
pandemic.
Nilfisk demonstrated a remarkable recovery in
2021, the result of a dedicated performance by our
Nilfisk team members at every level. They remained
dedicated to serving our customers and to finding
solutions at a time of supply chain constraints, and
through the ups and downs of the COVID pandemic.
Nilfisk’s organic revenue growth of 20.7% outpaced
the growth in the general market. It represents an
actual gain in market share, most significantly in the
Americas region, where our revenue grew organically
by 23.8%.
The year 2021 also saw Nilfisk display its
technological skills. With our first large-scale rollout
of a fleet of autonomous cleaning machines to a
leading European retailer, we went beyond proof of
concept and demonstrated that we mastered the
technology and its software-related services.
Securing supplies to our customers
Overall sales growth in 2021 was constrained by
the global supply chain challenges affecting many
companies.
Our reaction to these supply chain challenges was
twofold. First, we increased production volume by
ramping up internal capacity, broadening our supplier
network, and expanding our inventory of material and
components. Second, we announced an extraordinary
mid-year price increase to mitigate the margin impact
of the jump in material and freight costs.
Order intake in the year far surpassed sales growth,
so we ended 2021 with a record order backlog.
Ensuring our ability to deliver continued growth and
profitability by mitigating supply chain constraints
and their margin implications remains our top short-
term priority moving into 2022.
Strategic roadmap for long-term growth
The COVID pandemic created increased awareness
of the value of clean among our customers. Clean
has become even more business critical, since it
provides the foundation for a hygienic and safe
environment. This comes on top of the fundamental
growth drivers of the global professional cleaning
equipment industry.
Despite the strong recovery in 2021, Nilfisk has
fallen short of its growth ambitions in the past.
Therefore, we spent a significant amount of time in
2021 reviewing our strategic priorities as well as the
prerequisites for successful execution. We identified
underutilized growth opportunities as well as how to
overcome prior execution shortcomings. Our service
business, as an example, lacked the investment
necessary to compete at the level of benchmarks
from other industries, while our market share, in the
very large-scale and growing US market, remains
underrepresented. Here we did not fully leverage our
substantial local manufacturing presence and our
sizable R&D competence center located in the US.
On that basis, we have formulated a five-year
business plan focused on enabling long-term
sustainable growth. We are building a powerful
execution engine that will translate strategic priorities
into impactful implementation with clear metrics to
track and commitments to ambitious sustainability
targets. Over time this will create a strong execution
culture and build new ways of working.
Our broad-based strategy review process, our
commitment to investing in well-defined strategic
priorities, and our launch of new ways of working
has brought a lot of energizing teamwork and has
created a feeling of commitment and confidence
across the entire organization. Sustaining this culture
of teamwork and cultivating a growth mindset will be
key to success in 2022 and beyond.
Torsten Türling
CEO
NILFISK ANNUAL REPORT 20216
Our governance
Financial StatementsManagement Review Our resultsOur businessOur strategy2021 in brief
5-year consolidated financial highlights CSR highlightsFinancial highlightsLetter from the CEOLetter from the Chair
117.7
mEUR
mEUR
mEUR
100.5
144.3
Growth
-14.6%
Growth
+43.6%
Financial
highlights
2021
994.9 mEUR 20.7% 43.6%
14.5%
51.0
mEUR 338.5 mEUR58.5 mEUR
Revenue Organic revenue growth
EBITDA before special
items (bsi) growth
EBITDA margin before
special items (bsi)
Profit for the year
Net interest-bearing debt (NIBD)
Free cash flow
Driven by increased demand for our products and
services in combination with solid execution in our
markets.
A broad-based market recovery benefitting from
high demand across all regions and segments
and the successful activation of several business
initiatives resulted in strong organic growth.
EBITDA bsi increased by 43.8 mEUR to 144.3
mEUR, corresponding to a growth of 43.6%
EBITDA bsi of 144.3 mEUR, corresponded to an
EBITDA margin bsi of 14.5%. The margin was
negatively impacted by a lower gross margin
driven by higher freight rates and raw material
costs, while price increases and a lower overhead
cost ratio had a positive impact.
Net profit increased by 53.6 mEUR from 2020,
driven primarily by the increase in operating profit
and to a lesser extent impacted by lower net
financial expenses and higher tax for the year
compared to 2020.
NIBD reduced by 43.5 mEUR from 2020 driven
by higher operating profit partly offset by higher
working capital. Lower NIBD in combination with
higher EBITDA led to a 1.5x reduction in gearing to
2.3x.
Free cash flow decreased by 15.0 mEUR compared
to 2020. Cash flow was negatively affected by
the working capital with intended increase of
inventory levels in connection of securing supply
capability. This effect was not fully offset by the
positive effects from lower financial expenses and
increased cash flow from higher operating profit.
832.9
12.1%
2020
14.5%
2021
8.7 mEUR
2019
414.1mEUR
2019
35.3 mEUR
2019
966.5
mEUR
2020
mEUR
2019
-2.6 mEUR
2020
51.0 mEUR
2021
382.0 mEUR
2020
338.5 mEUR
2021
73.5 mEUR
2020
58.5 mEUR
2021
994.9
12.2%
2019
mEUR
2021
2021 2021
25
5
10
-5
-10
0
-15
15
20
2020 20202019 2019
20.7%
-11.5%
-4.1%
Organic revenue growth and EBITDA margin
before special items was in line with the
preliminary numbers announced on January 13,
2022.
NILFISK ANNUAL REPORT 20217
Our governance
Financial StatementsManagement Review Our resultsOur businessOur strategy2021 in brief
5-year consolidated financial highlights CSR highlightsFinancial highlightsLetter from the CEOLetter from the Chair
5-year
consolidated
financial
highlights
EUR million 2021 2020 2019 2018¹ 2017¹
Income statement
Revenue 994.9 832.9 966.5 1,054.3 1,081.9
EBITDA before special items³ 144.3 100.5 117.7 125.5 120.1
EBITDA³ 139.9 90.6 95.0 69.8 99.5
Operating profit (EBIT) before special items³ 84.1 32.9 49.8 87.4 81.5
Operating profit (EBIT)³ 79.7 22.1 25.9 18.9 60.9
Special items, net -4.4 -10.8 -23.9 -68.5 -20.6
Financial items, net -11.6 -14.7 -14.0 -11.3 -8.9
Profit (loss) for the year 51.0 -2.6 8.7 10.0 40.3
Cash flow
Cash flow from operating activities 74.7 89.5 76.1 33.1 41.4
Cash flow from investing activities -16.2 -16.0 -40.8 -38.6 -35.3
– hereof investments in property, plant, and equipment -5.8 -5.4 -10.4 -18.6 -15.3
Free cash flow excluding acquisitions and divestments 58.5 73.5 35.3 -8.6 6.1
Statement of financial position
Total assets 841.2 763.5 840.1 794.4 827.2
Group equity 207.7 134.8 158.0 147.5 137.5
Working capital 175.7 131.6 157.9 170.4 163.5
Net interest-bearing debt 338.5 382.0 414.1 369.6 359.7
Capital employed 546.2 516.8 572.1 516.8 497.2
Financial ratios and employees
Organic growth 20.7% -11.5% -4.1% 2.0% 3.7%
Organic growth Nilfisk branded professional business² 20.1% -13.7% -2.6% 2.8% -
Gross margin³ 40.5% 41.6% 42.1% 42.0% 42.2%
EBITDA margin before special items³ 14.5% 12.1% 12.2% 11.9% 11.1%
EBITDA margin³ 14.1% 10.9% 9.8% 6.6% 9.2%
Operating profit (EBIT) margin before special items³ 8.5% 4.0% 5.2% 8.3% 7.5%
Operating profit (EBIT) margin³ 8.0% 2.7% 2.7% 1.8% 5.6%
Financial gearing³ 2.3 3.8 3.5 2.9 3.0
Overhead cost ratio³ 32.0% 37.7% 37.0% 33.1% 34.1%
Working capital ratio³ 15.4% 18.8% 20.6% 18.5% 16.2%
Return on Capital Employed (RoCE)³ 15.8% 5.9% 8.5% 16.7% 16.0%
Basic earnings per share (EUR) 1.88 -0.10 0.32 0.37 1.49
Diluted earnings per share (EUR) 1.88 -0.10 0.32 0.37 1.49
Number of full-time employees, end of period 4,887 4,339 4,886 5,482 5,769
1
Comparative figures have not been restated with the effect of IFRS 16.
2
In 2019, the reportable segments were changed, and the Nilfisk branded professional business was established. The related key figures from 2017-2018 have not been calculated.
3
In 2020, amortization/impairment of acquisition-related intangibles were no longer presented in a separate line in the income statement. In addition, share of profit from associates was presented on a separate line under
operating profit in the income statement. 2019 key figures have been restated, however the related key figures from 2017-2018 have not been calculated
Please find definitions in note 7.7.
NILFISK ANNUAL REPORT 20218
Our governance
Financial StatementsManagement Review Our resultsOur businessOur strategy2021 in brief
5-year consolidated financial highlights CSR highlightsFinancial highlightsLetter from the CEOLetter from the Chair
Scope 1
Scope 1 emissions are directly created by owned or controlled
sources, including facilities and car fleet
Scope 3
Scope 3 emissions are all other indirect upstream and
downstream emissions that occur in the value chain
Scope 2
Scope 2 emissions are from purchased sources such as
electricity, steam, heating, and cooling
Nilfisk issues a separate CSR Report 2021, which
contains our Statutory Statement for Corporate Social
Responsibility per section 99a, 99b, 99d, and 107d of
the Danish Financial Statements Act. The report can
be found at Nilfisk's website: https://www.nilfisk.com/
global/about-nilfisk/corporate-social-responsibility/
CSR highlights
Nilfisk has committed to the Science Based Targets
initiative and set near-term targets to reduce carbon
emissions.
Reducing greenhouse gas emissions
from direct and purchased energy sources
(Scope 1 and 2)
Absolute reduction of
35%
by 2030 from a 2019 base year
Reducing greenhouse gas emissions
from the use of sold products (Scope 3)
Reduction of
48%
per unit of gross profit by 2030 from a
2021 base year
Low-emitting products are
essential to drive sustainable
growth. We are proud to be
leading the industry with a 48%
reduction target per unit of
gross profit related to the use
of our products.
Torsten Türling
CEO of Nilfisk
A-
CDP 2021 rating
Nilfisk received a 2021 A- score with CDP, an
international nonprofit organization that administers
a global sustainability disclosure system, thereby
maintaining the score achieved in 2020. The A- score
keeps Nilfisk in the leadership category ranking
among the top 19% of all companies within our peer
group.
Silver rating
EcoVadis 2021 score
91
st
percentile
In 2021, Nilfisk was awarded a
silver medal for corporate social
responsibility and business
sustainability from EcoVadis, the
world’s most trusted provider
of business sustainability
ratings. Nilfisk ranked in the top range of the silver
rating criteria and in the 91st percentile across all
industries, meaning that Nilfisk’s score is higher than
or equal to the score of 91 percent of all companies
rated by EcoVadis.
NILFISK ANNUAL REPORT 20219
Our governance
Financial StatementsManagement Review Our resultsOur businessOur strategy2021 in brief
5-year consolidated financial highlights CSR highlightsFinancial highlightsLetter from the CEOLetter from the Chair
Our strategy
Our strategy is focused on long-term
sustainable growth. We have formulated a
business plan that will allow us to achieve
our financial targets by 2026. The Business
plan positions the company for growth on the
basis of clear strategic priorities and a detailed
implementation plan.
NILFISK ANNUAL REPORT 202110
Financial StatementsManagement Review Our governanceOur resultsOur businessOur strategy2021 in brief
Outlook for 2022 Capital allocationFinancial targets for 2026Market and trends Sustainability targetsBusiness Plan 2026
Solid fact base for the
Business Plan 2026
During the second half of 2021, the leadership team
at Nilfisk undertook a rigorous strategy review. The
purpose was to assess the value creation potential of
different strategic levers and decide on future strategic
priorities. Additionally, this process helped us reflect
upon past execution shortcomings and define on
how to overcome them with a more robust execution
engine.
As a starting point, Nilfisk compiled a strong fact base
that provides a solid understanding of which markets
and product segments drive revenue and profitability,
and how to unlock underutilized growth opportunities.
This knowledge was built into a comprehensive
financial model for assessing value-creation potential
and identifying future strategic levers.
This process resulted in a robust, fact-based, and
growth-focused Business Plan 2026, with clear
priorities underpinned by a detailed implementation
plan.
NILFISK ANNUAL REPORT 202111
Financial StatementsManagement Review Our governanceOur resultsOur businessOur strategy2021 in brief
Outlook for 2022 Capital allocationFinancial targets for 2026Business Plan 2026 Market and trends Sustainability targets
59%
Of respondents in a comprehensive Nilfisk
customer study state that the business-
criticalness of cleaning has increased
significantly.
79%
Of the respondents believe their business
will maintain higher standards of cleanliness
beyond the COVID-19 pandemic.
Market and trends
The demand for cleaning is driven by a fundamental
human need for hygiene to preserve health, safety,
and overall wellbeing.
The market for professional cleaning equipment
and services is on a path towards long-term growth.
There is a clear correlation between the average
hourly wage and the market size of professional
cleaning equipment in the country as a percentage
of GDP. In other words, rising wage levels drive
demand for equipment and services that enable labor
productivity.
The COVID pandemic created increased awareness
of the value of clean among our customers, and
further accelerated the growth of demand for
professional cleaning solutions. Health and safety
concerns have become even more business critical,
and labor shortages have added to the challenge of
rising labor costs. Specific application segments,
such as Warehousing and Healthcare, stand out with
above-average growth in demand for professional
cleaning solutions.
In the longer term, we see the following macro trends
driving the evolution of the professional cleaning
equipment industry:
• Increasing labor shortages and continuously rising
cost of cleaning personnel
• Tighter regulatory requirements when it comes to
health and safety standards, and a sharp increase
in sustainability requirements
• Digital transformation allowing for performance
transparency and optimization as part of a wider
ecosystem
In conclusion, the market conditions are favorable
for Nilfisk as a global market leader for professional
cleaning solutions, with a broad range of products,
technologies and services.
NILFISK ANNUAL REPORT 202112
Financial StatementsManagement Review Our governanceOur resultsOur businessOur strategy2021 in brief
Outlook for 2022 Capital allocationFinancial targets for 2026Market and trends Sustainability targetsBusiness Plan 2026
Business Plan 2026
Develop
service-as-a-business
Grow in
large-scale markets
Optimize European leadership position
Lifecycle
services
NILFISK VALUE
PROPOSITION
STRATEGIC
PRIORITIES
OPTIMIZATION
OPPORTUNITIES
WAYS OF
WORKING (WOW)
Digitally enabled Empowered peopleExecution culture
Customer centric
innovation
Sustainability
commitment
Enhance Supply Chain robustness
Lead with
sustainable products
Optimizing customer value creation
• IT backbone
• Digital applications and
customer interface
• Mobilizing the organization
• Growth mindset
• Nilfisk Operating System
• Strategy deployment and
managing projects
Ensuring technology-enabled value creation Creating value for all stakeholders
NILFISK ANNUAL REPORT 202113
Financial StatementsManagement Review Our governanceOur resultsOur businessOur strategy2021 in brief
Outlook for 2022 Capital allocationFinancial targets for 2026Business Plan 2026 Market and trends Sustainability targets
Focusing on long-term
sustainable growth
We expect the global professional cleaning
equipment market to grow over the next five
years, by around 3% per year influenced by the
market trends, we have mentioned. In addition,
we see opportunities to create value for our
customers, our people, our shareholders, and for
our communities.
Our strategy is focused on long-term sustainable
growth, and our value creation proposition is
based on three fundamental pillars.
Nilfisk value proposition
Lifecycle services
Optimizing customer value
creation
Customer centric innovation
Ensuring technology-enabled
value creation
Sustainability commitment
Creating value for all
stakeholders
NILFISK ANNUAL REPORT 202114
Financial StatementsManagement Review Our governanceOur resultsOur businessOur strategy2021 in brief
Outlook for 2022 Capital allocationFinancial targets for 2026Market and trends Sustainability targetsBusiness Plan 2026
Growth platforms for
value creation
Business Plan 2026 is centered around three
strategic initiatives and two optimization
opportunities identified as key to ensure long-
term sustainable growth.
Optimization opportunities
Our core business has been performing well
in 2021. We can build on our strong market
position in Europe and our growth momentum in
the US. As part of Business Plan 2026, we have
formulated a set of initiatives targeted towards
growing sales and profitability in Europe and
improving the robustness of our Supply Chain.
Europe is currently our largest and most
profitable region. For this region, our strategic
review identified optimization opportunities by
implementing a more segmented go-to-market
approach. This approach will enable us to achieve
a broader and more efficient market coverage.
As a result, we expect Europe to contribute
significantly to our profitable growth towards
2026.
In 2021, the global supply chain challenges
stress tested the robustness of our supply
chain organization. The review of our current
setup has shed light on important optimization
opportunities, allowing us to cater for the targeted
volume growth with moderate investments.
Additionally, Business Plan 2026 incorporates
key optimization levers that will positively impact
the cost competitiveness as well as the overall
robustness of our supply chain.
Develop
service-as-a-business
Grow in
large-scale markets
Lead with
sustainable products
Strategic priorities
We have opportunities to strengthen our position
in several large-scale markets. The US market is of
particular importance and our first priority. The US
market currently represents approximately 40% of
the global professional cleaning equipment market.
We have a substantial and growing market presence
in the US, and our market share is increasing, but
we are still underrepresented. We can build on a
strong manufacturing base and also leverage our
highly competent US based R&D center. We have
formulated a plan targeting long-term revenue and
profitability growth in this strategically important
region.
We aim to lead the industry with sustainable
products and solutions. To reach this target, we will
provide upgrades to our current offer of products and
services. Those upgrades will help reduce carbon
footprint and will be enhancing digital functionalities.
We have fundamentally reviewed our product &
technology development roadmap. Any new product
platform will be designed to set a new benchmark
for sustainability and improved scalability. This
will allow for resource-efficient, scalable growth
that contributes to our enhanced sustainability
commitments.
Service, Parts, and Accessories represented 30% of
Nilfisk’s revenue in 2021. However, the proportion
of service contract-related revenue is rather low
compared to other industries. Service-as-Business
means migration from a reactive repair model to
proactively focusing on providing a comprehensive
solution. It is about complementing the product offer
with a range of services throughout the utilization
lifecycle and thereby delivering a customer-needs
oriented outcome. This lifecycle customer value
creation will generate stable incremental revenue and
enhanced profitability, and it will also contribute to
customer satisfaction and loyalty overall.
Individually and combined, these growth platforms
enable long-term sustainable growth. Business
Plan 2026 not only makes clear choices about
strategic priorities but is also backed up by detailed
implementation plans.
Reliable execution is key to our success. Business
Plan 2026 is explicit about building a powerful
execution engine to translate strategic priorities into
impactful implementation with clear metrics to track.
Over time, this will build a strong execution culture
and craft new ways of working.
Our strategy review process has clearly identified three growth platforms that offer significant potential for
value creation across all stakeholders. Therefore, our Business Plan 2026 focuses on the following three
strategic priorities.
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Execution culture Digitally enabled Empowered people
Ways of Working (WoW)
Building Execution culture with Nilfisk Operating
System
We will build a stronger execution culture by
implementing the Nilfisk Operating System (NOS).
The NOS is based on a proven methodology already
successfully practiced in execution-savvy companies.
NOS ensures that value drivers and initiatives are
systematically tracked and managed. Strategy
deployment is anchored into specific projects, while
measuring implementation along clear targets-
to-improve KPIs. Over time, it will change how
we manage even daily business. The disciplined
application of tools and review processes will over
time build a strong execution culture.
Digitally enabled helping quality and speed of
decision making
Strong execution requires real-time transparency on
facts, progress, and deviation root-cause analysis to
enable initiation of counter measures and quality of
decision making. As part of Business Plan 2026, we
have planned for investments into our digital systems
infrastructure. This will strengthen our IT systems
backbone and digital applications.
This infrastructure investment will yield multiple
benefits, including enabling us to
Empowered people as a prerequisite for an
execution-focused organization
People are the most essential part in successful
execution. Business Plan 2026 provides clarity on
strategic priorities and performance targets. Our
strategic priorities are reflected in the design of
our adjusted leadership organization to ensure that
each priority is adequately represented in Nilfisk’s
Executive Leadership Team.
To foster customer-centricity, execution agility, and
results ownership, we are empowering our people
in the business by delegating responsibility. This will
mobilize the entire organization and instill a culture
that supports execution.
Ensuring consistency and synergies across our global
activities will require us to strengthen our company-
wide processes and invest in our IT infrastructure
towards a digitally enabled organization.
New Ways of Working
will form a powerful
execution engine
Successful execution is key to capturing the
value creation potential of any strategic plan,
and it requires rigorous discipline. Our strategy
review process clearly identified root causes of
prior execution shortcomings and detailed the
pre-requisites ensuring successful execution of
Business Plan 2026.
Successful execution starts with focus. Business
Plan 2026 provides clear strategic priorities.
With those priorities in place, we must mobilize
our people and the entire organization so that
everyone can contribute to the successful
implementation. Finally, disciplined follow-up
along clearly defined value drivers, performance
metrics, and milestones sets the pace for
execution progress.
On that basis, three elements make up our Ways
of Working (WoW) and in combination will form a
powerful execution engine.
Our Ways of Working will unfold its power over
time as we are steadily growing our organizational
capabilities around NOS, being digitally enabled and
empowering our people.
Finally, we encourage our people to embrace a
growth mindset. This is the fundamental belief that
capabilities can grow over time and that any setback
is an opportunity to learn, adapt, and grow.
• efficiently scale our growth
• provide real-time data and analytics for daily
business management
• enhance our digital customer interface for higher
value creation
As an essential part of our new Ways of Working, a
digitally-enabled organization will provide the basis
for fact-based, real-time and consistent decision
making by everyone in the organization.
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Financial targets for 2026
Market conditions
The demand for cleaning is on a path towards
long-term growth, driven by a fundamental need
for hygiene to preserve health, safety, and overall
wellbeing. Rising wage levels are driving the
demand for equipment and services that enable
labor productivity, and this demand is further fueled
by labor shortages. In addition, we foresee tighter
regulatory requirements for health and safety
standards and a sharp increase in sustainability
requirements. We expect the digital transformation
will enhancing our value proposition to customers
and drive demand for Nilfisk products and services in
the longer term.
Organic growth
We expect our business to generate long term
sustainable growth and to organically reach revenue
between 1.2 bnEUR and 1.3 bnEUR in 2026. This
assumes the continuation of the outlined positive
market trends based on global economic growth and
implementation of Business Plan 2026 initiatives.
Acquisitions may become relevant medium-term, but
they are not included in this revenue target.
EBITDA margin before special items
We expect EBITDA margin before special items to
be above 16% no later than 2026, benefitting from
targeted revenue growth and the implementation of
Business Plan 2026 initiatives.
Outlook for 2022
Market conditions
During 2021, demand for Nilfisk products and
services rebounded and improved quarter over
quarter across all markets and regions. As order
intake surpassed sales growth, we ended 2021 with
a solid order book for 2022. We expect demand
to continue growing in 2022, although at a much
slower pace. For 2022, we expect the continuation
of the historically high freight costs and supply
chain bottlenecks as well as further material costs
increases resulting in above-normal uncertainty
around the outlook for 2022.
Organic growth
We expect our business in 2022 to generate an
organic revenue growth in the range of 4% to 7%
compared to 2021. We assume continued solid
market demand, driven by the underlying mega
trends for cleaning solutions. Revenue will also be
supported by our recent price increases. The growth
range is influenced by the continued supply chain
uncertainties.
EBITDA margin before special items
In 2022, we plan to invest in our growth initiatives in
line with revenue growth, while maintaining a prudent
cost management principle. The gross margin is
expected to be influenced by remaining high freight
and raw material cost and the overall supply chain
uncertainty. We expect an EBITDA margin before
special items in the range of 13.5% to 15.5%.
4% to 7%
Organic revenue growth
13.5% to 15.5%
EBITDA margin before special items
1.2 bnEUR to 1.3 bnEUR
Revenue in 2026
Above 16%
EBITDA margin before special items in 2026
1.5x to 2.0x
Gearing measured as net interest-bearing debt to
EBITDA before special items in 2026
Forward-looking statements
Statements made about the future in this report
reflect the Executive Management Board’s current
expectations with regard to future events and
financial results. Statements about the future
are by their nature subject to uncertainty, and
the results achieved may therefore differ from
the expectations, due to economic and financial
market developments, legislative and regulatory
changes in markets that the Nilfisk Group operates
in, development in product demand, competitive
conditions, energy and raw material prices, and
other risk factors.
Nilfisk Holding A/S disclaims any liability to update
or adjust statements about the future or the
possible reasons for differences between actual
and anticipated results except where required by
legislation or other regulations.
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As a global market leader for professional cleaning
solutions, we acknowledge the importance of making
a serious effort to reduce our climate footprint. Our
strengthened focus on reducing the company’s
carbon footprint includes commitments to define our
efforts on climate action and reach very ambitious
sustainability targets, lowering Nilfisk’s total carbon
emissions.
During 2021, we further detailed our efforts on
climate action. Nilfisk has committed to the Science
Based Targets initiative (SBTi), the only global
initiative that directly links a company’s carbon
emission targets to the Paris Agreement and
associated global efforts. Our commitment was
reinforced during 2021 with a third-party validation
of our Scope 1 and Scope 2 targets, and the
assessment and identification of targets on Scope 3.
All targets have been approved by SBTi, marking a
significant milestone in our climate action efforts.
Based on the most recent data collection and third-
party validation, Nilfisk commits to reducing absolute
Scope 1 and 2 GHG emissions by 35% by 2030 from
a 2019 base year.
Following the materiality assessment of our Scope 3,
we have identified the main Scope 3 contributors and
will focus our continued assessment on the detailed
emissions of the Category 11 – Use of Sold Products
that represent more than 80% of our total Scope 3
emissions. This approach has allowed us to optimize
the data structure currently available to monitor
progress.
Based on these assumptions, Nilfisk commits to
reduce Scope 3 GHG emissions from use of sold
products by 48% per unit of gross profit by 2030 from
a 2021 base year.
Sustainability targets
towards 2030
Capital allocation
principles towards 2026
Our capital structure is constructed to always ensure
the required financial flexibility to execute on our
strategy.
The implementation of Business Plan 2026 initiatives
is linked to investments, primarily in three areas.
We will invest in R&D to ensure New Product &
Technology development, in IT systems, and in
increasing our productivity and supply capacity to
accommodate for the expected volume growth. As a
result, CAPEX spend is expected in the range of 3%
to 4% of revenue. After an initial investment phase
in the first years, CAPEX will trend down towards the
long-term sustainable level of 3% of sales. Cash flow
is expected to improve substantially.
Gearing, measured as net interest-bearing debt to
EBITDA before special items, will be targeted in the
range between 1.5x and 2.0x. This excludes financing
of any potential M&A.
When the gearing is sustainably within the target
range, distributions by way of dividends are expected
at around one third of adjusted profit after tax.
Additional capital will be distributed via share buy
backs.
Scope 1
Scope 1 emissions are directly created
by owned or controlled sources, including
facilities and car fleet.
Scope 2
Scope 2 emissions are from purchased sources
such as electricity, steam, heating, and cooling.
Scope 3
Scope 3 emissions are all other indirect
upstream and downstream emissions that
occur in the value chain.
35% reduction
of direct and indirect carbon emissions linked to
Scope 1 and 2 in 2030
48% reduction
per unit gross profit of carbon emissions linked to
Use of Sold Products (Scope 3, category 11) in 2030
Diversity and inclusion
At Nilfisk, our diversity and inclusion focus means
fostering a culture where individuals from all
backgrounds experience equal opportunities to
perform, learn, and grow, both personally and
professionally. We see a diverse employee base as a
prerequisite for engaging, understanding, and serving
our equally diverse portfolio of customers and
communities.
We have launched a new diversity and inclusion
dashboard based on existing data from the global
HRIS system in Nilfisk and benchmark data from
external sources. The tool is the first step to help
identify and analyze how Nilfisk can become even
better at creating and maintaining equal career
opportunities for all employees in the future.
In addition, the Nilfisk Leadership team has
committed to increase the number of women in
senior leadership positions and has set a target of
25% in 2026.
25% women
in senior leadership positions in 2026
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Our business
Nilfisk is a global supplier of cleaning
solutions and services, and we are among
the market leaders in the professional
cleaning equipment industry. Through a
combination of direct and indirect sales,
we service contract cleaners, retailers,
industrial customers, healthcare facilities,
and many more types of customers across
more than 100 markets.
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Solutions Markets and segmentsChannels Operations
34%
22%
14%
30%
Solutions
Nilfisk develops, manufactures, and sells a
comprehensive portfolio of cleaning solutions and
services targeting the premium and value market for
professional cleaning, complemented by cleaning
solutions tailored to households. At Nilfisk, innovation
and product development begin with customer
insights. These insights are the guiding principle for
the development of products and services via close
cross-functional collaboration between R&D, Product
Management, external technology partners, and
customers.
Product development is managed centrally and
based at four competence centers located in
Denmark, Italy, the US, and China. Our engineers and
product specialists work globally with an internally-
developed product development model. In 2021,
2.6% of the total revenue was spent on research and
development.
With a product portfolio that spans from advanced
industrial vacuum solutions to high-pressure washers
and floorcare equipment, Nilfisk has a unique range
in terms of breadth and depth. Our products and
services are designed to increase customer value
through value-adding features, high durability, and
lower total cost of ownership. Our offering includes:
Floorcare
Our largest product line is Floorcare, including a wide
range of scrubber dryers, from small walk-behinds
to large engine-powered ride-ons and autonomous
solutions. This product line also includes sweepers
for both indoor and outdoor tasks, combination
machines for diverse heavy-duty cleaning tasks, as
well as carpet extractors and burnishers.
Vacuum cleaners
We offer a wide range of commercial vacuum
cleaners, providing cleaning professionals with
solutions for any application. Our range of vacuum
cleaners spans from dry canister vacs and uprights
to portable backpacks, as well as battery-driven
and wet & dry vacs. In addition, the vacuum cleaner
range includes a large portfolio of industrial vacuum
cleaners for cleaning in confined areas and for the
removal of hazardous dust and fumes.
Pressure washers
Our selection of pressure washers includes
professional mobile pressure washers with hot/cold
water as well as stationary pressure washers for
fixed cleaning applications. Our range of pressure
washers includes petrol/diesel-driven pressure
washers, as well as an extensive range of high-
pressure washers for domestic use.
Aftermarket
Having easy and quick access to professional
service is a key factor for our customers in running
their operations smoothly, predictably, and with
T
he Nilfisk SC5000 scrubber dryer,
launched in 2021, combines the
performance of a large-scale solution with a
compact design and the small turning radius
needed for complicated and high-traffic
spaces. Such solutions are in high demand for
the Warehouse & Logistics segment as well as
in light and heavy industries.
The rapid development of e-commerce
businesses, fueled by the global pandemic in
which online shopping became second nature
to many consumers, means we expect the
need for storage space to increase further.
Many warehouse and logistics operations
work with very narrow aisle floor plans and
demand agile and smart solutions like this.
Enhancing
agility and
flexibility in
floorcare
PRODUCT LAUNCH
Share of revenue 2021
Our solutions
Floorcare
Vacuum cleaners
High-pressure washers
Aftermarket
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The next
generation of
high-pressure
washers
PRODUCT LAUNCH
T
he Nilfisk Core series, launched in 2021,
is the next generation of high-pressure
washers. It introduces innovative features
and designs that set new standards for user
experience in this category. Key features include
an internal hose reel that allows for easy storage
of the high-pressure hose and an in-hand power
control that enables full control over both water
and power consumption.
The Nilfisk Core series won three of the most
respected awards within product design: the Red
Dot Design Award, the IF Design Award, and the
German Design Award.
The jury of the German Design Award noted:
“Clean lines and minimal angles meld with
simple controls to complete this modern Nordic
masterpiece". All three recognitions aided us
in getting listed with several new retail chains,
providing access to more than 500 new stores.
We can be proud of our
ability to work efficiently
across functions. It’s
an acknowledgment of
Nilfisk's ambition to be
innovative and to be true
to our consumer slogan
‘Cleaning made simple’.
Andreas Hagbart
Group Product Manager Nilfisk
maximum uptime. With the help of our technicians,
customers can maximize the long-term viability of
their cleaning operation across the entire equipment
lifecycle. In addition to a range of service solutions,
we offer spare parts for all product groups. From the
overall range of parts, more than 8,000 spare parts
have been identified as critical spare parts. A variety
of accessories are marketed covering all product
groups, such as brushes, brooms, pads, and blades
for floorcare machines as well as batteries and
chargers.
Share of revenue 2021
Our sales
9%
6%
85%
Branded professional
Consumer
Private label and other
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One of our
biggest
partnerships
to date
CUSTOMER CASE
Channels
With a global sales force and proven sales channels,
we have established strong and valuable customer
relations and partnerships across the world,
supporting us in a targeted go-to-market approach.
Our key channels include:
Strategic accounts
We serve our largest customers as a dedicated,
global partner. We co-create and offer dedicated,
internationally-coordinated key account management
plus tailored value bundles for our strategic accounts,
such as global contract cleaners and large fleet-
buying enterprises. We offer specially-selected
packages of equipment and autonomous solutions,
digital services, financial solutions, as well as
dedicated customer success management including
installation and training.
Direct sales
We have more than 1,500 full-time employees
working in Nilfisk sales force and sales support
functions across more than 40 countries in Europe,
the Americas, and APAC. Building relationships while
offering personal attention and quality service are key
parameters for all our national sales teams. Through
a dedicated national key account management
set-up, our sales force can provide their customers
with the most relevant information and offers of
standardized packages of machines, solutions, and
digital services.
Distributors
Through an extensive network of dealers and
distributors worldwide, Nilfisk’s products and
solutions are sold in more than 100 countries. While
our distributors range from large national exclusive
dealers to smaller vendors selling a variety of
cleaning products and brands, they each contribute
with their market access, a wide customer base, and
intimate understanding of the local market, in many
cases building on existing relationships with specific
businesses and segments.
Service
Professional customers are looking for solutions to
increase productivity, so maintenance and service are
key parameters for success. With a comprehensive
service and aftermarket offering, we aim to ensure
maximum uptime for our cleaning equipment used
by customers around the world. A total of 500
Nilfisk Field Service Engineers and an additional
300 authorized third-party technicians work within
Nilfisk Service Solutions. Third-party technicians
are certified by Nilfisk to ensure consistent service
quality across our entire global network.
E-commerce
Our web-based platform gives our professional
customers the ability to do business in a convenient
way, allowing for a faster buying process and
enhanced flexibility. In 2021, we continued the
global roll-out of a new global e-commerce platform
to simplify and globalize digital sales processes
and create a seamless and improved customer
experience online.
D
uring 2021, Nilfisk entered a year-long
partnership with United Rentals, the
largest equipment rental company in the
world. As of October 2021, United Rentals
had a store network of 1,278 rental locations
in North America (including branches in
49 states and 10 Canadian provinces), 11
in Europe, 28 in Australia, and 18 in New
Zealand.
United Rentals serves construction and
industrial customers, utilities, municipalities,
homeowners, and others. As of October
2021, it offered approximately 4,300 classes
of equipment for rent with a total original
cost of 15.72 bnUSD. United Rentals
provides cleaning equipment to the facilities
maintenance and construction industry,
so Nilfisk is a strong match with our
diverse portfolio of solutions targeting the
Industrial segment as well as the Building
& Construction segment. During 2021 we
supplied United Rentals with solutions for
floorcare cleaning and facility maintenance
from throughout our range, from the MA10-
12E Upright Floor Scrubber to the large 7765
Industrial Rider Sweeper-Scrubber.
Both Nilfisk and United Rentals are leaders in
their respective markets and both maintain
a strong customer focus, so the partnership
is an asset and a competitive advantage
for both companies. We support the same
large global customer accounts as well as
larger national US customer accounts. The
partnership also creates visible branding for
Nilfisk in vertical categories such as storm
restoration and disaster clean-up, categories
in which some of United Rentals’ customers
do significant business.
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Markets and segments
The need for cleaning is universal, and the effect
of clean is valuable to our customers everywhere.
Nilfisk serves customers across the world targeting
strategic customer segments.
Our customer base operates in a wide range of
sectors and industries, and customers range from
large global contract cleaners that buy fleets of
machines across the product range to smaller
businesses buying a single machine.
Our geographies
Based on in-depth customer insights, our product
development, marketing, and sales activities are
targeted specific segments across industries.
Industrial customers in Warehouse & Logistics, Food
& Beverage, Pharma and Manufacturing for whom
cleaning is business critical for product quality, and
an integrated part of the ongoing optimization and
automation of facilities and production.
O
ur autonomous cleaning solutions
found solid commercial ground
during 2021 among both existing and new
customers. One partnership in particular
marked a breakthrough of autonomous into
the retail store segment, when we became
the partner of contract cleaners selected
through a floor cleaning tender from
Carrefour in France.
The deal was put in place through a
partnership between M2H S.A. and contract
cleaners, based on our ability to deploy a
large scale autonomous fleet, train cleaning
staff, and support an autonomous project
over the long term. During 2021, a total
of 160 Nilfisk Liberty SC50 and Nilfisk
Liberty SC60 autonomous scrubbers were
put into action. This is the largest fleet of
autonomous solutions ever for a single
customer in Europe, and it is accompanied
by several hundred conventional scrubber-
dryers, sweepers, and vacuum cleaners.
This multi-year partnership positions
Nilfisk as a leading provider of autonomous
cleaning solutions. The Nilfisk Liberty
autonomous range works alongside
cleaning staff to provide consistent
productivity and frees up resources for
other more value-adding cleaning tasks,
which is particularly important during the
pandemic.
Autonomous
breakthrough
into the Retail
segment
CUSTOMER CASE
This deal has great
perspectives. We’ll
continue to provide
contract cleaners
with our expertise
and to meet cleaning
expectations in Retail,
today and tomorrow.
Christopher Riau
Senior General Manager Nilfisk
61%
Europe
region
30%
Americas
region
9%
APAC,
Middle
East and
Africa
region
Share of total revenue 2021
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Commercial customers where cleaning creates a
safe and positive customer experience for customers
and employees working in Retail, Hospitality,
Healthcare, Education and Offices.
Our customers in Agriculture, Building and
Construction and Automobile where cleaning enables
safe working conditions and ensures equipment is
maintained.
While 2021 in general benefitted from a pickup in
demand across sectors, customer segments like
Pharma, Food & Beverage, Retail, and Healthcare
in particular experienced a solid rebound in market
activity. The hospitality segment, which includes
hotels, restaurants, and casinos, continued to be
impacted during 2021 by continued lockdowns and
restrictions brought on by the pandemic.
Operations
Nilfisk’s manufacturing set-up is to a large extent
based on assembling components purchased
from external suppliers. Cost-effective sourcing
of components as well as efficient distribution
are critical for our operations. The year 2021 was
characterized by a strong focus on mitigating the
effect of global supply chain constraints in order
to secure delivery of products and services to our
customers in the best possible way. The high demand
for Nilfisk products throughout the year required us
to significantly increase our global material supply,
manufacturing, and distribution capacity.
Limitations in material and component supply,
as well as in transportation capacity, created an
unprecedented situation. We took decisive action to
mitigate the constraints and keep our manufacturing
and distribution sites operational. As a result, we
were able to significantly increase output from our
manufacturing sites, although not enough to fully
satisfy the high order intake. We managed to keep
manufacturing and distribution sites open and
operational due to strict COVID-19 guidelines and
measures.
To mitigate supply constraints, we invested
significantly in tool and assembly capacity as well
as raw material inventory to relieve bottlenecks
at suppliers. We have supported our suppliers
with sourcing of raw materials and have secured
transportation capacity as needed. In addition,
we implemented alternative supply sources for
components to enhance our supplier network and
worked across functions to re-engineer products to
tackle the component shortage situation.
During 2021, we continued the digitalization of
our operations and completed the rollout a new
Manufacturing Execution System (MES) across
manufacturing sites in China, Hungary, Mexico,
and the US. To further support innovation in Nilfisk,
we have put in place a new global manufacturing
engineering organization covering all manufacturing
sites and suppliers. With this organization, we will
enhance our efforts to support a higher degree
of modularity, automation, serviceability, and
sustainability in the design and manufacturing of our
products.
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Our results
In 2021, Nilfisk returned to a growth
trajectory with a set of strong results driven
by increased demand for our products
and services and solid execution across
our markets. For the year, we realized
total revenue of 994.9 mEUR and organic
growth of 20.7%, positively impacted by all
markets and product groups, with Europe
and Americas outperforming pre-pandemic
levels, delivering above their 2019
performance. EBITDA before special items
amounted to 144.3 mEUR corresponding to
an EBITDA margin before special items of
14.5%.
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2021 in brief
• Total revenue of 994.9 mEUR, corresponding
to reported growth of 19.5%
• Organic growth for the total business was
20.7% supported by all segments
• Organic growth in the branded professional
business was 20.1% with strong demand and
solid execution being driven across all regions
• EBITDA before special items amounted to
144.3 mEUR, corresponding to an EBITDA
margin before special items of 14.5%
• Special items amounted to 4.4 mEUR, mainly
related to costs associated with the change in
executive management
• Operating profit amounted to 79.7 mEUR,
corresponding to an operating profit margin
of 8.0%
• Working capital amounted to 175.7 mEUR,
corresponding to a working capital ratio of
15.4%, a reduction of 3.4 percentage points
from 2020
• Free cash flow decreased by 15.0 mEUR
compared to 2020 and came to 58.5 mEUR
Business performance
Revenue
9% 5%
9%
Con-
sumer
6%
Private
label &
other
48%
47%
Europe
8%
8%
APAC
30%
30%
Americas
EUR million Revenue 2021 Revenue 2020
Organic
growth 2021 Impact of other
Impact of foreign
exchange rates Total growth
Europe 466.0 396.6 17.8% - -0.3% 17.5%
Americas 296.3 247.6 23.8% - -4.1% 19.7%
APAC 79.2 65.8 19.7% - 0.7% 20.4%
Nilfisk branded
professional business 841.5 710.0 20.1% - -1.6% 18.5%
Consumer 86.0 76.0 12.8% -0.1% 0.5% 13.2%
Private label and other 67.4 46.9 43.9% - -0.2% 43.7%
Total 994.9 832.9 20.7% 0.0% -1.2% 19.5%
Revenue and organic growth by operating segments
2020
2021
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Europe
All markets in the Europe region saw a strong
recovery from the COVID-19 pandemic. A significant
increase in demand for our products and services,
alongside strong execution of our initiatives
supported by the sales and service functions,
delivered solid growth in 2021.
Europe realized revenue of 466.0 mEUR compared
to 396.6 mEUR in 2020 corresponding to reported
growth of 17.5%. The effect from foreign exchange
rates was -0.3%, implying an underlying organic
growth for the full year of 17.8%. The Europe South
region saw the largest growth year over year, partly
due to a large order from a leading retailer, which
included significant deliveries of autonomous
cleaning solutions. Other markets in Europe South
also saw good growth, including Italy and the
Netherlands. Europe North and Europe Central
regions saw strong demand through the year, with
key markets such as Denmark, Germany, and the UK
recovering well from the COVID-19 pandemic.
Sales by product – Europe
11%
37%
Aftermarket
40%
33%
Floorcare
19%
11%
High-
pressure
washers
30%
19%
Vacuum
cleaners
466.0
47.0%
125.4
17.8%
45.2%
26.9%
Revenue
Share of total revenue
EBITDA
margin before
special items
EBITDA before
special items
Organic growth
Gross margin
mEUR
mEUR
Key markets: Germany, France, UK, Denmark, Sweden
Gross profit for Europe amounted to 210.5 mEUR
in 2021, an increase of 27.4 mEUR from 2020. This
corresponds to a gross margin of 45.2% compared
to 46.2% in 2020. The gross margin was negatively
impacted by significantly higher freight costs, and
to a lesser extent from customer mix. The negative
impact from freight and mix changes on gross profit
was partly mitigated through an extraordinary price
increase at the beginning of July 2021 and improved
manufacturing costs by higher factory utilization.
Overhead cost growth in the year was driven by
activity-related costs, sales incentives and increased
travel. However, the overhead cost to sales ratio
improved by 2.9 percentage points to 21.6%. As a
result, EBITDA before special items came to 125.4
mEUR, 23.0 mEUR higher than 2020, and the EBITDA
margin before special items was 26.9% compared to
25.8% in 2020.
2020
2021
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Americas
Nilfisk saw its strongest recovery from the COVID-19
pandemic in the Americas, where all markets saw
robust performance and delivered 2021 results above
2019 levels. The US remains a strategic growth
market, where ongoing execution of sales initiatives
and the continued focus on strategic accounts
contributed to the strong performance in 2021.
Total revenue in Americas amounted to 296.3
mEUR in 2021 compared to 247.6 mEUR in 2020
corresponding to reported growth of 19.7%. The
effect from foreign exchange rates was 4.1%,
implying an underlying organic growth for the full year
of 23.8%. Canada delivered a robust performance,
primarily driven by the continued development of
our dealer business. In the Latin American markets
encouraging growth was seen across all markets as
restrictions from COVID-19 were lifted.
14%
26%
Aftermarket
28%
52%
Floorcare
11%
12%
High-
pressure
washers
47%
10%
Vacuum
cleaners
296.3
30.0%
56.1
23.8%
39.0%
18.9%
Revenue
Share of total revenue
EBITDA
margin before
special items
EBITDA before
special items
Organic growth
Gross margin
Key markets: US, Canada
Gross profit for Americas amounted to 115.6 mEUR
in 2021, up from 100.5 mEUR in 2020. The gross
margin was 39.0%, a decrease of 1.6 percentage
points from 40.6% in 2020. The negative impact of
rising freight costs and raw material prices were
partly offset by increased capacity utilization and
an extraordinary price increase from July 2021. The
increase of revenue with large strategic accounts
contributed to an absolute gross profit growth but
impacted the gross profit margin negatively.
Overhead cost growth remained below revenue
growth, also as a consequence of continued strong
cost control. EBITDA before special items came to
56.1 mEUR, 9.7 mEUR higher than in 2020, with the
EBITDA margin before special items at 18.9%, slightly
above the level of 18.7% in 2020.
2020
2021
Sales by product – Americas
mEUR
mEUR
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APAC
Across APAC there has been a strong organic
growth in revenue of 19.7% although we have seen
a somewhat slower recovery from the COVID-19
pandemic in countries such as in India, Vietnam and
China, where lockdowns were more prevalent.
Total revenue amounted to 79.2 mEUR for the full
year, 13.4 mEUR higher than 2020 corresponding to
reported growth of 20.4%. Foreign exchange rates
positively impacted the result by 0.7%, mainly due
to the AUD, leading to an underlying organic growth
of 19.7%. China and the southeast Asian markets
delivered strong organic growth, but remained
below pre-pandemic activity levels, mainly due
to their exposure to the hospitality segment and
aforementioned longer lockdowns. The Pacific
region saw a strong recovery coming out of the strict
11%
32%
Aftermarket
35%
34%
Floorcare
22%
10%
High-
pressure
washers
32%
24%
Vacuum
cleaners
79.2
8.0%
10.1
19.7%
41.2%
12.8%
Revenue
Share of total revenue
EBITDA
margin before
special items
EBITDA before
special items
Organic growth
Gross margin
Key markets: Australia, China, Singapore, Thailand
lockdowns with increased demand in the industry
sector and new customers.
Gross profit amounted to 32.6 mEUR in 2021, up
from 25.5 mEUR in 2020. The gross margin was
41.2% compared to 38.8% in 2020. The gross margin
was positively impacted by increased capacity
utilization and an extraordinary price increase in July.
EBITDA before special items came to 10.1 mEUR
compared to 3.5 mEUR the year before, driven by
the positive development in gross profit and limited
overhead costs increase. The EBITDA margin before
special items was 12.8% compared to 5.3% in 2020.
2020
2021
Sales by product – APAC
mEUR
mEUR
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Consumer
The Consumer business continued to execute well
in 2021, benefitting from our renewed focus on this
business and the successful launch of the Core
series, an innovative high-pressure washer range.
In addition, the business continued to see high
demand with the general increased interest in home
improvement from consumers.
The Consumer business posted revenue of 86.0
mEUR, compared to 76.0 mEUR the year before,
resulting in reported growth of 13.2%. Underlying
organic growth amounted to 12.8% and was driven
by strong growth in larger markets such as UK,
Sweden, and France. On the product side, growth was
primarily driven by high-pressure washers following
the launch of the new Core range.
Gross profit increased by 3.6 mEUR to 29.2 mEUR in
2021, while the gross margin rose by 0.3 percentage
point to 34.0%. The driver of the margin increase was
the launch of new products and optimization of the
product mix. These effects were overcompensating
for the increase in freight costs.
Private label and other
Revenue in the Private label business amounted
to 67.4 mEUR compared to 46.9 mEUR in 2020,
resulting in reported growth of 43.7%. Foreign
exchange effect was -0.2% and, consequently,
organic growth reached 43.9%. The increase in
revenue throughout the year was due to an uplift in
demand from key customers.
Gross profit increased by 2.8 mEUR and came to
14.8 mEUR. The gross margin decreased by 3.6
percentage points to 22.0% driven by customer mix
in 2021.
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Total growth
19.5%
Financial review for the total business
Organic growth in Nilfisk’s branded professional
business was 20.1%, positively impacted by
performance in all the regions.
The Consumer and Private label businesses delivered
organic growth of 12.8% and 43.9%, respectively.
Organic growth for the total business stood at 20.7%.
Gross profit
Gross profit for the total business amounted to 402.7
mEUR in 2021 compared to 346.7 mEUR in 2020. The
gross margin was 40.5%, 1.1 percentage points lower
than in 2020 primarily due to the significant increase
in freight rates during the year, and to a lesser extent
the increase in raw material costs. These effects
were to some extent offset by an extraordinary price
increase from July 2021 and increased capacity
utilization at our manufacturing facilities.
Overhead costs and ratio
Overhead costs increased by 4.8 mEUR compared to
2020 and came to 318.6 mEUR. Activity-related costs
rose as a consequence of higher demand and were
the key contributor to the increase in overhead costs
year over year. As COVID-19 restrictions were mostly
eased during 2021, sales activities rose and related
costs such as travel increased in 2021. Other activity-
related costs including marketing and distribution
also saw an activity increase. During 2020, Nilfisk
received government support of 4.3 mEUR compared
to 0.3 mEUR in 2021. Finally, foreign exchange
positively impacted overhead costs by 1.8 mEUR.
The overhead cost ratio came to 32.0% compared to
37.7% in 2020, reflecting continued focus on strict
cost control relative to the increased activity.
Total R&D spend increased by 2.5 mEUR compared
to 2020 and amounted to 25.6 mEUR, equivalent
to 2.6% of total revenue in 2021. The increase was
driven by increased activities for software platform
development as well as core product portfolio
development. Out of the total spend of 25.6 mEUR,
15.9 mEUR was recognized as an expense in the
income statement (2020: 15.0 mEUR) while 9.7
mEUR was capitalized (2020: 8.1 mEUR). In addition
to expensed costs, total reported R&D costs for
2021 of 29.1 mEUR (2020: 31.7 mEUR) also includes
amortization, depreciation and impairment of 13.2
mEUR, compared to 16.7 mEUR in 2020, driven by
both lower amortizations and impairment.
Sales and distribution costs increased by 6.8 mEUR
and amounted to 227.6 mEUR. The increase was
primarily driven by activity-related costs including
staff costs, freight to customers, and travel costs.
Administration costs were kept flat year over year at
63.8 mEUR compared to 64.6 mEUR in 2020.
Other operating income/expenses was net 1.9
mEUR compared to net 3.3 mEUR in 2020. The
decrease was due to government support received
in 2020 related to COVID-19 especially in several
European countries with Denmark as one of the large
contributors. This has been phased out in 2021 with
0.3 mEUR received in 2021 compared to 4.3 mEUR
in 2020.
EBITDA before special items and EBITDA
EBITDA before special items increased by 43.8
mEUR to 144.3 mEUR for the full year 2021,
corresponding to an EBITDA margin before special
items of 14.5% compared to 12.1% in 2020. The
EBITDA margin before special items was within the
guidance provided in November 2021. The negative
impact of higher freight rates and raw material costs
were overcompensated by the improved overhead
cost ratio, leaving a positive impact on the EBITDA
margin of 2.4 percentage points. 2020 was positively
impacted by government support of 4.3 mEUR
compared to 0.3 mEUR in 2021. Adjusting this, the
cost ratio improved even further.
EBITDA amounted to 139.9 mEUR, up from 90.6
mEUR in 2020. The EBITDA margin improved by 3.2
percentage points to 14.1%, driven by the lower cost
ratio and lower special items.
Operating profit before special items and operating
profit
Operating profit before special items amounted to
84.1 mEUR compared to 32.9 mEUR in 2020. This
corresponds to an operating profit margin before
special items of 8.5% compared to 4.0% in 2020.
Operating profit came to 79.7 mEUR compared to
22.1 mEUR in 2020. As a consequence, the operating
profit margin improved to 8.0% up from 2.7% the year
before, driven by the increase in operating profit as
well as lower special items compared to 2020.
Special items
Special items for the full year amounted to 4.4 mEUR
compared to 10.8 mEUR in 2020. Special items for
2021 were mainly related to the leadership changes
announced on May 6, 2021, while special items in
EUR million 2021 2020
Total R&D spend 25.6 23.1
Capitalized 9.7 8.1
Expensed in the P&L 15.9 15.0
R&D ratio (% of revenue) 2.6% 2.8%
Expensed R&D spend 15.9 15.0
Amortization. depreciation and
impairment 13.2 16.7
Total R&D expenses 29.1 31.7
EUR million 2021 2020
Revenue 994.9 832.9
Gross Profit 402.7 346.7
Overhead costs 318.6 313.8
EBITDA before special items 144.3 100.5
Operating profit (EBIT) before
special items 84.1 32.9
EBITDA 139.9 90.6
Operating profit (EBIT) 79.7 22.1
Financial ratios:
Organic growth 20.7% -11.5%
Gross margin 40.5% 41.6%
EBITDA margin before special
items 14.5% 12.1%
Operating profit (EBIT) margin
before special items 8.5% 4.0%
Overhead cost ratio 32.0% 37.7%
Revenue
In 2021, total revenue for Nilfisk amounted to
994.9 mEUR compared with 832.9 mEUR in 2020,
corresponding to a reported growth of 19.5%. Foreign
exchange rates had a negative impact of 1.2%, with
USD as the main driver. Consequently, organic growth
was 20.7%, thus exceeding the guidance for organic
growth in the range of 17% to 18% given in November
2021.
Revenue growth
832.9
mEUR
2020 Organic
growth
2021
20.7% -1.2% 0.0%
994.9
mEUR
Other
Foreign
exchange rates
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2020 were impacted by redundancy costs associated
with the global restructuring plan carried out in 2020.
Details on special items are described in Note 2.4.
Share of profit from associates
Share of profit from associates amounted to 0.6
mEUR compared to 0.1 mEUR in 2020. The increase
was driven primarily by higher earnings in the
company M2H S.A.
Financial items
Financial items, net amounted to a cost of 11.6
mEUR in 2021 and improved by 3.1 mEUR compared
to 2020.
Financial income increased by 1.0 mEUR, while
financial expenses decreased by 2.1 mEUR compared
to 2020. Interest expenses decreased due to lower
net interest-bearing debt.
Tax on profit for the year
Tax on profit for the year was a cost of 17.7 mEUR
compared to 10.1 mEUR in 2020. Tax on profit for
the year 2021 was related primarily to current tax
on profit of 13.9 mEUR and adjustment of deferred
tax of 3.5 mEUR. In 2020, tax on profit for the year
related was mainly current tax on profit of 6.4 mEUR
and adjustment of deferred tax of 3.6 mEUR.
Profit (loss) for the year
Profit for the year amounted to 51.0 mEUR compared
to a loss of 2.6 mEUR in 2020.
Working capital
At the end of 2021, working capital was 175.7 mEUR,
up by 44.1 mEUR compared to 2020, where working
capital was at the lowest level seen for several years
due to a large decline in demand and lowering of
production activity as a consequence of the COVID-
19 pandemic. The increase in working capital in 2021
was due to a reversal of these effects, increasing
operating working capital and securing critical parts
and components, leading to an increased inventory
level.
At the end of 2021, inventories were 70.8 mEUR
higher than at the end of 2020, driven by substantially
higher business activity and by a management
decision to ensure stock availability of critical
components and most used parts where possible.
Inventory days increased compared to 2020 because
of supply chain restraints throughout 2021, as
sourcing of certain components was increasingly
difficult leading to longer lead times in production.
Trade receivables were 19.7 mEUR higher than same
time last year and amounted to 173.9 mEUR at the
end of 2021. The increase was driven by higher sales
activity, especially in Europe and Americas. Days
sales outstanding was notably reduced compared to
2020 across several markets.
Trade payables increased by 36.0 mEUR and came to
135.9 mEUR because of higher activity compared to
2020 in correlation to the inventory development as
described above.
The 12-month average working capital ratio was
reduced by 3.4 percentage points compared to 2020
and came to 15.4%.
Capital employed and RoCE
As of December 31, 2021, capital employed
amounted to 546.2 mEUR, an increase of 29.4 mEUR
compared to 2020. The increase in capital employed
was to a significant extent driven by higher working
capital.
The return on capital employed was 15.8%, 9.9
percentage points higher than 2020 driven by the
increase in operating profit.
Cash flow
Cash flow from operating activities before financial
items and income taxes amounted to 91.3 mEUR,
which is 22.2 mEUR lower than in 2020. The
development was driven by the increase in working
capital. Net financial expenses and income tax paid
amounted to a net outflow of 16.6 mEUR, 7.4 mEUR
lower than 2020, mainly influenced by lower financial
expenses. Overall, total cash flow from operating
activities in 2021 was 14.8 mEUR lower than in 2020
and came to 74.7 mEUR.
Cash flow from investing activities for 2021
amounted to a net cash outflow of 16.2 mEUR,
basically on the same level of 2020.
Free cash flow decreased by 15.0 mEUR compared
to 2020 and amounted to 58.5 mEUR. Cash flow
was negatively affected by the working capital with
intended increase of inventory levels in connection
with securing supply capability. This effect was not
fully offset by the positive effects from lower financial
expenses and increased cash flow from higher
operating profit.
Equity
Equity was 207.7 mEUR at the end of 2021 against
134.8 mEUR at the end of 2020. The increase came
primarily from profit for the year. Foreign exchange
rate effects also had a positive impact.
Net interest-bearing debt
At the end of 2021, total net interest-bearing debt
was 338.5 mEUR, down by 43.5 mEUR compared
to year-end 2020. The reduction was a result of the
positive operating profit, partly offset by increased
working capital.
The financial gearing at the end of the year was 2.3
compared to 3.8 at the end of 2020.
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Consumer Private label and other Financial review Q4 Performance ESG performanceAPACAmericasEuropeBusiness performance
In Q4 2021, revenue amounted to 260.6 mEUR
corresponding to reported growth of 18.3% compared
to revenue in Q4 2020 of 220.2 mEUR. Organic
growth was 16.7%, with a positive foreign exchange
effect of 1.6%, of which two thirds were due to
a lower USD. The high demand seen in previous
quarters continued through to the year-end.
In Europe, organic growth was 13.3% driven by
continued demand across all regions, with Europe
South finishing the year strongly. In Americas, organic
growth was 23.9% driven by growth in the US and
a strong finish in Canada. In APAC, organic growth
for the quarter was 11.9%, positively impacted by
continued performance improvement in the Pacific
region.
The branded professional business posted organic
growth of 16.6% compared to Q4 2020, led by growth
in the floorcare product segment.
Performance in Q4 2021
The Consumer business recorded organic growth
of -0.3% coming from a very strong growth from
Q4 2020. The Private label business posted organic
growth of 33.8% following strong demand from key
customers.
Gross profit was 101.2 mEUR in 2021, an increase of
7.9 mEUR from 2020. The gross margin was 38.8%,
which is 3.6 percentage points lower than in Q4 2020,
- mainly due to increased freight rates, increased raw
materials prices, and the regional mix, with greater
growth in the US.
Overhead costs grew by 4.5 mEUR compared to Q4
2020 and amounted to 85.7 mEUR corresponding
to an overhead cost ratio of 32.9%, which is 4.0
percentage points lower than Q4 2020. The cost
increase was primarily driven by higher personnel
costs directly related to the revenue increase, as well
as higher activity-related costs such as travel.
EBITDA before special items came to 31.5 mEUR,
which was 0.6 mEUR higher than Q4 2020 due to
increased revenue. As a result, the EBITDA margin
before special items was 12.1%.
EUR million Q4 2021 Q4 2020
Revenue 260.6 220.2
Gross profit 101.2 93.3
Overhead costs 85.7 81.2
EBITDA before special items 31.5 30.9
Operating profit (EBIT) before special
items 15.5 12.1
EBITDA 31.5 30.4
Operating profit (EBIT) 15.5 11.3
Free cash flow excl. acquisitions and
divestments 15.5 35.4
Financial ratios:
Organic growth 16.7% -2.1%
Gross margin 38.8% 42.4%
EBITDA margin before special items 12.1% 14.0%
Operating profit (EBIT) margin before
special items 5.9% 5.5%
Overhead cost ratio 32.9% 36.9%
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Climate and
Environment
ESG performance
We continuously seek to improve our data registration, collection,
and reporting of relevant ESG indicators, and provide data that can be
measured year over year. The ESG data collection and reporting support
the business to drive action plans, and it provides transparency for all
stakeholders into our CSR work.
Data indicator Unit 2021 2020 2019 SDG (Target) alignment GRI alignment
UNGC
Principles
alignment
Environmental data
GHG emissions
1
Scope 1 GHG emissions
2
MtCO
2
eq 15,510 11,653 15,402 SDG 13 GRI 305
Emissions
Environment
Principles
7, 8, 9
Fleet MtCO
2
eq 10,021 7,438 10,397
Natural gas MtCO
2
eq 4,941 3,863 4,399
Others MtCO
2
eq 548 352 606
Scope 2 GHG emissions MtCO
2
eq 7,116 6,696 8,679
Electric power MtCO
2
eq 6,518 6,411 7,778
District heating MtCO
2
eq 598 285 901
Scope 3 GHG emissions - Use of sold products MtCO
2
eq/
EUR gross profit
4.4 N/A N/A
Waste
3
Total waste generated Mt 1,217,982 N/A N/A SDG 12
12-5: Substantially reduce waste generation
GRI 306
Waste
Total non-hazardous waste
4
Mt 1,211,467 N/A N/A
Total hazardous waste Mt 6,515 N/A N/A
Water
5
Water consumption m
3
106,400 108,465 122,909 SDG 12
12-2: Sustainable management and use of natural
GRI 303
Water and Effluents
Water recycled m
3
12,235 17,995 36,575
ISO certifications
Number ISO 14001-certified sites number 7 7 7 SDG 12
12-2: Sustainable management and use of natural resources
12-5: Substantially reduce waste generation
Number ISO 9001-certified sites number 11 11 12 SDG 3
3-9: Reduce illnesses and death from hazardous chemicals and pollution
1
After publication of Nilfisk's 2020 CSR report, our 2019 and 2020 emission-data has been audited, which resulted in adjustments
of the calculation for those years. Therefore, values have been updated with the most recent and accurate data. We are constantly
improving our data quality and collection process, which results in improvement of accuracy when reporting emissions. Our 2021 data
will be audited in 2022, which may result in updates in reported emissions. Emissions from our fleet in 2021 are provisional and still
being consolidated
2
The category Total emissions for testing the machines in our 2020 report has been replaced by the category Others to better reflect
the broader activities it covers.
3
Due to the publication of new GRI guidelines on waste, effective from January 1, 2022, we have updated the fields reporting on waste
generation. Details on waste destination per treatment technology are available on page 13. This data covers our production sites in
Italy, Hungary, China, and Mexico, comprising 98% of our production volume, and is excluding municipal waste.
4
Due to limited data availability, data from China on non-hazardous waste includes only waste sent to reuse/recycling, and not inciner-
ation and landfilling.
5
Data covers alone our production sites.
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Workplace
Data indicator Unit 2021 2020 2019 SDG (Target) alignment GRI alignment
UNGC
Principles
alignment
Social data
Total full-time employees, end of period number 4,887 4,339 4,886 Labor
3, 4, 5, 6
Blue collar workers % of total FTEs 30% 28% 29%
White collar workers % of total FTEs 70% 72% 71%
Employee turnover
6
% 20.5% 20% 24%
% of women in the company % 29% 27% 27% GRI 404
Diversity and Equal
Opportunity
% of women in senior leadership positions
7
% 14% N/A N/A
% of women in the Nilfisk Leadership Team % 12.5% 25% 17%
% of women on the Board of Directors % 14% 12% 14%
Engagement survey participation % 90% 92% 92%
Employee engagement score (10-point-scale) 8.1 8.0 7.8
Fatalities number 0 0 0 SDG 3
3-9: Reduce illness and death from hazardous chemicals and pollution
GRI 403
OHS
Injury frequency rate number 43 51 68
Data indicator Unit 2021 2020 2019 SDG (Target) alignment GRI alignment
UNGC
Principles
alignment
Governance data
Number of suppliers signed UNGC 10 principles % 86%
5
93% 93% GRI 412-1
Operations that
have been subject
to human-rights
review or impact
assessment
Human
rights
1, 2
Number of supplier audits number 34 63 10
Number of supplier CSR assessments number 153 18 N/A
Number of suppliers covered by the Code of
Conduct
8
number 82 11 N/A
Number of whistleblower cases submitted number 2 6 9 GRI 102-17
Mechanisms for
advice and concerns
about ethics
Anti-
corruption
10
Whistleblower cases admissible number 2 2 1
Whistleblower cases resolved number 2 6 9
6
Numbers have been adjusted to exclude turnover related to divestments in 2019.
7
Senior Leadership positions defined as leadership level Vice President and above.
8
In 2021, we changed our way of assessing this KPI, as we considered that signing our Code of Conduct was not enough to state that
suppliers apply its principles. Therefore, this number now represents suppliers that have had both our CSR and Legal assessment
questionnaires approved, which cover the principles of our Code of Conduct. These questionnaires allow understanding in details how
suppliers deal with CSR and legal topics, which better reflects their compliance with our Code of Conduct principles.
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Society
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NILFISK ANNUAL REPORT 202136
Our governance
The duties and responsibilities of Nilfisk’s
various governing bodies are determined
by Danish law and Nilfisk’s corporate
governance principles, which aim to
ensure active and accountable business
management across the Group.
Shareholder information
Risk managementNilfisk Leadership TeamBoard of Directors Corporate governance
Our governanceOur resultsOur businessOur strategy2021 in brief
Financial StatementsManagement Review
Nilfisk Board of Directors
Chair Committee
• Jens Due Olsen (Chair)
• René Svendsen-Tune (Deputy
Chair)
Audit Committee
• Jutta af Rosenborg (Chair)
• Are Dragesund
Nomination Committee
• René Svendsen-Tune (Chair)
• Franck Falezan
Remuneration
Committee
• Jutta af Rosenborg (Chair)
• Thomas Lau Schleicher
Project Management
Office Committee¹
• Are Dragesund
• Franck Falezan
US Committee¹
• Jens Due Olsen (Chair)
• René Svendsen-Tune
• Richard Bisson
¹ These committees were dissolved as of June 1, 2021, as the Board of
Directors no longer deemed these committees necessary.
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Financial StatementsManagement Review
Shareholder information
Risk managementNilfisk Leadership TeamBoard of Directors Corporate governance
NILFISK ANNUAL REPORT 202138
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Risk managementNilfisk Leadership TeamBoard of Directors Corporate governance
global/about-nilfisk/corporate-social-responsibility/
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Risk managementNilfisk Leadership TeamBoard of Directors Corporate governance
Board of Directors - meeting attendance 2021
Board of Directors meetings
1
Chair Committee Audit Committee Remuneration Committee Nomination Committee
Project Management Office
Committee
2
US Committee
2
Number of meetings
10
7
5
4 4 1 2
Jens Due Olsen
René Svendsen-Tune
Richard Bisson
Are Dragesund
Franck Falezan
Jutta af Rosenborg
Anders Runevad
3
Thomas Lau Schleicher
Gerner Raj Andersen
Søren Gissing Kristensen
4
Yvonne Markussen
¹ In addition to the listed board meetings, informal ad hoc board calls have been conducted throughout the year as and when needed.
² US and Project Management Office Committees were dissolved in June, 2021.
³ Member and Deputy Chair of the Board of Directors until the Annual General Meeting in March 2021. Did not pursue re-election.
4 Has left Nilfisk as of December 31, 2021.
NILFISK ANNUAL REPORT 202140
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Risk managementNilfisk Leadership TeamBoard of Directors Corporate governance
Board of Directors
Jens Due Olsen
Chair, Born 1963
Independent
René Svendsen-Tune
Deputy Chair, Born 1955
Independent
Richard Bisson
Member, Born 1959
Independent
Are Dragesund
Member, Born 1975
Non-independent
Franck Falezan
Member, Born 1971
Non-independent
Jutta af Rosenborg
Member, Born 1958
Independent
First elected in October 2017 October 2017 March 2019 June 2020 June 2020 October 2017
Expiry of current term March 2022 March 2022 March 2022 March 2022 March 2022 March 2022
Core capabilities • Industrial management
• Management of listed companies
• Economic and financial matters
• International management
• Management of listed companies
• Service businesses
• Large account sales
• Strategy Development and
Implementation
• Branded Product Management
and Innovation
• Global Manufacturing
• Supply Chain
• M&A and capital markets,
restructuring and profit
improvement, strategy and
organization
• Strategy, restructuring and finance • International management
• Management of listed companies
• Finance and business optimization
Committees • Chair Committee
US Committee¹
• Chair Committee
Nomination Committee
• US Committee¹ • Audit Committee
• Project Management Office¹
• Nomination Committee
• Project Management Office¹
• Audit Committee
• Remuneration Committee
Selected positions and directorships • Chairman of the board of directors
of NKT A/S, Børnebasketfonden,
Advantage Investment Partners
A/S, NIL Technology A/S
• Deputy Chairman of KMD A/S
• CEO of GN Store Nord A/S and GN
Audio A/S
• Deputy chairman of the board of
directors of NKT A/S
• Chairman of the board of directors
of Stokke A/S
• CEO of K&N Filtration
• CEO of Alpha Guardian
• CEO of Water Pik, Inc.
• Member of the board of directors
at K&N Filtration and Super Stroke
Inc
• Co-Head Ferd Capital, Ferd AS
• Member of the board of directors
of Mestergruppen AS and Norkart
AS
• Founder and Managing Partner at
PrimeStone
• Member of the board of directors
of NKT A/S, Abrdn PLC, JPMorgan
European Investment Trust plc,
BBGI SICAV S.A.
Education • MSc in Economics • BSc Eng. (hon.) • BSc in Industrial Technology • MsC Economics and Business
Administration
• Master in Business Administration • MSc in Business Economics and
Auditing
Nilfisk shares end of 2021
(end of 2020 in brackets)
21,732 (21,732) 4,.000 (4,000) 0 (0) 0 (0) 0 (0) 0 (0)
¹ US and Project Management Office Committees were dissolved in June, 2021.
NILFISK ANNUAL REPORT 202141
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Risk managementNilfisk Leadership TeamBoard of Directors Corporate governance
Board of Directors
Thomas Lau Schleicher
Member, Born 1973
Non-independent
Gerner Raj Andersen
Employee representative,
Born 1966
Søren Giessing Kristensen
Employee representative,
Born 1986
Yvonne Markussen
Employee representative,
Born 1959
Thorkil Vinum
Employee representative,
Born 1974
First elected in March 2019 First elected in March 2018 March 2018 February 2019 January 2022
Expiry of current term March 2022 Expiry of current term March 2022 March 2022
1
March 2022 March 2022
Core capabilities • Executive management. financial
reporting, risk
• Management, capital markets
expertise, strategy and M&A
Position at Nilfisk
• Sales assistant
• Joined Nilfisk in 1990
• R&D Engineer
• Joined Nilfisk in 2015
• Assistant Payroll department
• Joined Nilfisk in 2006
• Senior Category Manager
Strategic Sourcing
• Joined Nilfisk in 2008
Committees • Remuneration Committee Committees N/A N/A N/A N/A
Selected positions and directorships • Chairman, Välinge Group AB.
Member of the board of directors
of Adapture Renewables Inc, Falck
A/S, Topsøe Holding A/S, Boston
Holding A/S and KIRKBI
• Burbo Extension Holding (UK)
Limited (a fully-owned subsidiary of
KIRKBI A/S)
Selected positions
and directorships
• Owner of Mågaard I/S
• Member of the board of Sem
Vandværk
N/A N/A N/A
Education • MSc in Finance and Accounting Education • Secondary program • M.Sc. Electro Mechanical
Engineering
• Vocational training as clerk with
emphasis on accounting
• MSc. Economics and Business
Administration (Cand.Merc)
Nilfisk shares end of 2021
(end of 2020 in brackets)
2,600 (2,600) Nilfisk shares end of 2021
(end of 2020 in brackets)
210 (210) 0 (0) 6 (6) 6 (6)
1
Has left Nilfisk as of December 31, 2021
NILFISK ANNUAL REPORT 202142
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Nilfisk Leadership Team
Torsten Türling
CEO
Member of the Executive Management Board
Reinhard Mayer
CFO
Member of the Executive Management Board
Jacob Blom
Executive Vice President
HR
Hans Flemming Jensen
Executive Vice President
Specialty Business & Corporate Affairs
Joined Nilfisk 2021 2021 2016 2017
Core Competencies • International CEO experience in
both B2B and B2C markets
• International Finance
• IT
• Legal and Compliance
• Supply Chain
• M&A
• HR management
• Implementation of group processes and HR
systems
• Global HR transformation
• M&A, partnerships & ventures
• Global corporate & commercial legal matters
• Capital markets
• Negotiation and international commercial
relationships
Positions and directorships N/A N/A Officer (reservist), Danish Army N/A
Previous positions • Linde Group
• Carrier Corporation
• Franke Group
• Frigoglass
• Ideal Standard
• Getinge AB
• Hansgrohe SE
• NCC AB
• TDC A/S
• Merk, Sharp & Dohme
• Kromann Reumert
• NKT Holding A/S
Education • Master’s degree in Business Administration
& Management from the University of
Saarbrücken and from EM Lyon Business School
• B.Sc. degree in Business Engineering from
Karlsruhe University of Applied Sciences
• Graduate Diploma in Organization & Leadership
• Officer, Danish Army
• Master of Laws, University
of Copenhagen
Nilfisk Shares End of 2021
(end of 2020 in Brackets)
16,980 (0) 13,869 (0) 200 (200) 735 (735)
NILFISK ANNUAL REPORT 202143
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Steen Lindbo
Executive Vice President
Sales
Søren Pap-Tolstrup
Senior Vice President
Interim, Operations
1
Pierre Mikaelsson
Executive Vice President
R&D
Camilla Ramby
Executive Vice President
Marketing
Joined Nilfisk 2018 2013 2019 2018
Core Competencies
• International B2B sales
• Commercial development
• Channel strategy
• Product/pricing strategies
• Operations
• Strategy
• Restructuring
• R&D
• Product Development
• Technology
• Management
• Product Management
• International Finance
• Marketing & Communication
• Commercial Excellence & Product
Management
• E-commerce
• Data and advanced analytics
Positions and directorships N/A N/A N/A N/A
Previous positions • Stanley Black & Decker, Inc. • TDC A/S
• Brødrene Hartmann A/S
• ABB Robotics
• KUKA Robotics
• Danske Bank A/S
• TDC A/S
• Codan A/S
Education • Diploma Business Finance • Cand.oecon • M.Sc. Chalmers University of Technology • MSc in International marketing & Management
Nilfisk Shares End of 2021 (end of
2020 in Brackets)
0 (0) 0 (0) 15 (15) 1,155 (0)
Nilfisk Leadership Team
1
Joined the Nilfisk Leadership Team on February 11, 2022, as Interim Head of Operations.
NILFISK ANNUAL REPORT 202144
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Risk managementNilfisk Leadership TeamBoard of Directors Corporate governance
Risk management
Risk is a natural part of doing business. At Nilfisk
we have a structured, consistent, and continuous
approach to ensure that our risk exposure is
assessed and managed.
The overall objective of risk management is to
support the realization of Nilfisk’s strategy and
support our operational and financial objectives,
ensuring that risks are properly identified and
mitigated. We use an integrated risk management
framework to identify, assess, manage, monitor and
communicate risks across the company.
The Board of Directors has oversight responsibility
for risk management. One of the Board’s
responsibilities is overseeing and interacting with the
Nilfisk Leadership Team with respect to key aspects
of Nilfisk’s business, including risk assessment and
mitigation of key risks. Evaluation of key risks is
carried out by the Board and risks are monitored on
an ongoing basis.
The Nilfisk Leadership Team is responsible for
the identification, assessment, prioritization, and
mitigation of strategic, financial, operating, CSR.
compliance, safety, and reputational risks as well as
risks related to other areas.
Risks are assessed according to a two-dimensional
heat map rating system estimating the likelihood and
business impact.
Risk areas
The following four risk areas are identified as high-
impact risks that could have a material, adverse
effect on our business, financial condition and/or
operating results:
Please refer to the overview on the following page.
Commoditization
Political and economic
instability including trade
conflicts
Operational interruptions
(production and distribution)
Interruptions to IT services or
systems
NILFISK ANNUAL REPORT 202145
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Risk managementNilfisk Leadership TeamBoard of Directors Corporate governance
For further information of risks related to currency, interest rate, credit and liquidity, please refer to Note 6.3.
Description of the four risk areas identified as high-impact risks and related risk mitigation
Commoditization
Political and
economic
instability
including trade
conflicts
Operational
interruptions
(production and
distribution)
Interruptions
to information
technology
service or
systems
Risks Risk description Risk mitigation
Customer demand is changing towards low-price “good-enough” products. At the same
time, competition is intense, and low-cost competition might reach a level at which
customers would be hesitant to pay a premium for higher-quality products. The Nilfisk
Group’s competitors include various large global and regional enterprises as well as
smaller regional or local companies. Our operational results and financial position may be
negatively impacted if Nilfisk products do not satisfy customer demand.
We monitor customer behavior via segment trends and purchasing loyalty. Nilfisk responds
to changes in customer behavior with a strategy focused on product innovation and
uniquely positioned customer offerings. With these offerings we add value beyond the
machine to deliver cleaning solutions that blend into operations and integrate digital
services, collectively increasing the value of clean. We leverage our strengths within brands,
product portfolio range, product quality, and customer access, and we scale benefits due to
our size and geographical coverage.
Adverse economic conditions including a risk of economic conflicts may negatively
impact our financial position and decrease demand for Nilfisk products and affect
sales in a downward direction. At the same time, major social or political changes
may disrupt sales and operations.
Failures or delays may occur through the entire supply chain including sourcing of
components, manufacturing, and distribution of products. In daily operations we are
dependent on information technology systems, production companies and distribution
centers. If functionality is interrupted in any of these for a substantial period, our business
continuity planning might be insufficient to continue daily operations. In addition, our
global operations are subject to various local legislation, creating a legal risk of not being
compliant with such laws and regulations.
Nilfisk’s information technology systems are subject to damage or interruption from
power outages, computer and telecommunications failures, malware, catastrophic events,
and user errors. Errors made due to lack of user awareness or deliberate misuse, such
as individual attempts to gain access to systems, are among the risks Nilfisk faces.
Inadequate management of changes to systems or service together with ineffective
measures to deter, prevent, detect, and react to such attempts might expose Nilfisk to risks.
Furthermore, Nilfisk is faced with the threat of security breaches (viruses, ransomware,
etc.) such as attempts at hacking our information technology systems.
We closely monitor developments in our markets and the global economic situation to be
able to respond in a timely manner to any adverse developments. We also mitigate possible
negative macroeconomic changes by hedging and maintaining variability in our cost
base as well as well as establishing a certain degree of flexible “plant-in-plant” production
footprint.
We focus on optimal production and distribution footprint including diversification
between several production facilities and distribution centers, dual sourcing initiatives,
and optimization of supply chain processes. Several of these measures were used to
mitigate the effects from the material shortages and significant challenges in the supply
chain experienced in 2021. Additionally, a modularization strategy aims at increasing scale
advantages and reduction of production complexity. We continuously monitor functionality
of utilities and compliance with applicable regulations.
We have implemented procedures and management processes to ensure necessary
availability for critical IT systems and services. Furthermore, we have developed and
actioned an IT security policy to prevent intentional damage to our systems and limit
access to critical data and systems. Finally, initiatives have been planned and implemented
to secure the digital business, strengthen the infrastructure platform, and enhance IT
service and recovery business continuity plans.
Nilfisk’s high-impact risk areas
NILFISK ANNUAL REPORT 202146
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Shareholder information
Nilfisk is listed on Nasdaq Nordic and is included in
the Copenhagen Mid Cap index.
Share capital 27,126,369 shares
Nominal value per share 20 DKK
Closing price at December 30, 2020 131.60 DKK
Closing price at December 30, 2021 215.00 DKK
Change during the financial year 63.4%
Ownership structure
The company has approximately 12,650 registered
shareholders, who together hold 95.9% of the total
share capital. The company has one share class and
the number of shares and voting rights are equal.
The breakdown of shareholders is set out in the table
below:
Shareholders at
December 31, 2021
Number
of shares
Share
capital
KIRKBI Invest A/S, Billund, Denmark 5,493,200 20.3%
Ferd AS, Oslo, Norway 5,409,277 19.9%
PrimeStone Capital LLP, London,
United Kingdom 4,614,817 17.0%
Institutional investors, Denmark 3,336,178 12.3%
Institutional investors. International 4,671,309 17.2%
Private investors 2,507,320 9.2%
Non-registered 1,094,268 4.1%
Dividend policy and dividend for 2021
The Board of Directors have adopted a dividend
policy with a target pay-out ratio of approximately
one third of the reported, consolidated profit for the
year.
The payment of dividends, if any, will in general
be determined with a view to balancing the pay-
out ratio mentioned above and the target for the
Group’s leverage ratio. It will further depend on a
number of factors, including future revenue, profits,
financial conditions, general economic and business
conditions, future prospects, strategic initiatives such
as acquisition activities or large-scale investments
decided upon by the Board of Directors, or other
factors the Board of Directors may deem relevant, as
well as applicable legal and regulatory requirements.
At the Annual General Meeting to be held on March
25, 2022, the Board of Directors will propose not to
distribute dividends for the financial year of 2021 as
the leverage target in the capital allocation policy has
not been met.
Investor relations website
Information about the Nilfisk Group and its shares,
share price, financial data, in addition to company
announcements, annual and interim reports, investor
presentations, transcripts, financial calendar, analyst
coverage etc. are provided via
https://investor.nilfisk.com.
Investor relations
We work to maintain a high and consistent level of
information for investors, and we aim to be proactive
and open when communicating with shareholder-
related stakeholders within the boundaries of current
regulation.
We place great emphasis on providing consistent
and high-quality information to the financial markets
as well as to new investors, analysts, and other
stakeholders through road shows, conferences,
company announcements, and via our investor
relations website. For further details on our investor
relations policy, please visit
https://investor.nilfisk.com.
At year-end 2021, Nilfisk Holding A/S is covered by
five equity analysts. For a full list of analysts, please
visit https://investor.nilfisk.com.
Financial calendar 2022
February 25 Annual Report 2021
March 25 Annual General Meeting
May 17 Q1 Interim Report 2022
August 18 Q2 Interim Report 2022
November 17 Q3 Interim Report 2022
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Consolidated financial statements 2021
Key accounting judgments made by the Executive Management
Board are included in the notes to which they relate in order to
increase clarity.
Key accounting judgments
Sensitivity analysis often accompanies key accounting estimates
and is included in the notes to which it relates in order to
increase clarity.
Sensitivity
Key accounting estimates made by the Executive Management
Board are included in the notes to which they relate in order to
increase clarity.
Key accounting estimates
Accounting policies are included in the notes to which they
relate in order to facilitate understanding of the contents and the
accounting treatment applied. Accounting policies not relating
directly to individual notes are stated in Note 1.1.
Accounting policy
1
1.1
1.2
1.3
1.4
2
2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8
3
3.1
3.2
3.3
Basis for reporting 54
Basis for preparation 54
Key accounting estimates and judgments 55
Implementation of new or changed accounting standards and 56
interpretations
Implementation of new regulations 56
Prot (loss) for the year 57
Segment information 59
Revenue 60
Research and development costs 62
Special items 62
Amortization, depreciation, and impairment 63
Other operating income 63
Financial items 63
Tax 64
Remuneration 66
Staff costs 66
Remuneration to the Board of Directors and the 66
Nilsk Leadership Team
Long-term incentive programs 67
Capital employed 69
Capital employed 69
Impairment test 70
Intangible assets 72
Property, plant, and equipment 74
Right-of-use assets 76
Pension liabilities 78
Provisions 80
Working capital 81
Inventories 82
Trade receivables 83
Capital structure 84
Net interest-bearing debt 84
Investments in associates 85
Financial risks and nancial instruments 86
Share capital 93
Other notes 94
Fees to auditors elected at the annual general meeting 94
Events after the balance sheet date 94
Related parties 94
Other non-cash adjustments 94
Contingent liabilities, securities, and contractual 94
obligations 94
Group companies 95
Denitions 96
4
4.1
4.2
4.3
4.4
4.5
4.6
4.7
5
5.1
5.2
6
6.1
6.2
6.3
6.4
7
7.1
7.2
7.3
7.4
7.5
7.6
7.7
Income statement 50
Statement of comprehensive income 50
Statement of nancial position 51
Cash ow statement 52
Statement of changes in equity 53
Financial Statements
Independent auditor’s report
NILFISK ANNUAL REPORT 202149
Consolidated financial statements Parent financial statements Management’s statement
Management Review
Income
statement
for the years ended December 31
Statement of
comprehensive income
for the years ended December 31
EUR million Note 2021 2020
Revenue
2.1, 2.2 994.9 832.9
Cost of sales
2.5, 3 -592.2 -486.2
Gross prot 402.7 346.7
Research and development costs
2.3, 2.5, 3 -29.1 -31.7
Sales and distribution costs
2.5, 3 -227.6 -220.8
Administrative costs
2.5, 3 -63.8 -64.6
Other operating income
2.6 3.4 5.5
Other operating expenses -1.5 -2.2
Operating prot before special items 84.1 32.9
Special items, net
2.4, 2.5 -4.4 -10.8
Operating prot 79.7 22.1
Share of prot from associates
6.2 0.6 0.1
Financial income
2.7 1.6 0.6
Financial expenses
2.7 -13.2 -15.3
Prot before income taxes 68.7 7.5
Tax on prot for the year
2.8 -17.7 -10.1
Prot (loss) for the year 51.0 -2.6
To be distributed as follows:
Prot (loss) attributable to shareholders of Nilsk Holding A/S 51.0 -2.6
Total 51.0 -2.6
Earnings per share (based on 27,126,369 shares issued)
Basic earnings per share (EUR)
6.4 1.88 -0.10
Diluted earnings per share (EUR) 1.88 -0.10
EUR million Note 2021 2020
Prot (loss) for the year 51.0 -2.6
Other comprehensive income
Items that may be reclassied to the income statement:
Exchange rate adjustments of subsidiaries 14.2 -19.2
Value adjustment of hedging instruments:
Value adjustment for the year 5.6 0.2
Transferred to cost of sales 0.7 -
Transferred to nancial income and expenses - -0.6
Tax on value adjustment of hedging instruments
2.8 -1.4 -0.1
Items that may not be reclassied to the income statement:
Actuarial gains (losses) on dened benet plans 1.9 -1.5
Tax on actuarial gains (losses) on dened benet plans
2.8 -0.3 0.4
Total comprehensive income for the year 71.7 -23.4
To be distributed as follows:
Comprehensive income attributable to shareholders of Nilsk Holding A/S 71.7 -23.4
Total 71.7 -23.4
Financial Statements
Independent auditor’s report
NILFISK ANNUAL REPORT 202150
Consolidated financial statements Parent financial statements Management’s statement
Management Review
Notes to the consolidated financial statementsStatement of financial positionIncome statement and statement of comprehensive income Cash flow statement Statement of changes in equity
Statement of financial position
as of December 31
EUR million Note 2021 2020
Assets
Goodwill 169.1 166.0
Trademarks 7.3 7.8
Customer related assets 5.2 6.1
Development projects completed 25.8 24.8
Software, know-how, patents, and competition clauses 23.5 30.6
Development projects, and software in progress 18.6 21.4
Total intangible assets
4.2, 4.3 249.5 256.7
Land and buildings 8.3 7.9
Plant and machinery 4.0 3.4
Tools and equipment 28.5 29.4
Assets under construction incl. prepayments 3.1 3.1
Right-of-use assets
4.5 56.2 65.2
Total property, plant, and equipment
4.2, 4.4 100.1 109.0
Investments in associates
6.2 29.0 29.3
Interest-bearing receivables
6.1 2.0 1.2
Other investments and receivables 3.3 3.1
Deferred tax
2.8 15.7 20.5
Total other non-current assets
Total non-current assets
4.1 399.6 419.8
Inventories
5, 5.1 220.1 149.3
Trade receivables
5, 5.2, 6.3 173.9 154.2
Interest-bearing receivables
6.1, 6.3 0.6 3.0
Income tax receivable
5 4.6 5.0
Other receivables
5, 6.3 27.4 19.1
Cash at bank and in hand 15.0 13.1
Total current assets
Total assets
EUR million Note 2021 2020
Equity and liabilities
Share capital
6.4 72.9 72.9
Reserves 3.3 -15.8
Retained earnings 131.5 77.7
Total equity
Deferred tax
2.8, 4.1 5.9 6.9
Pension liabilities
4.1, 4.6 5.1 7.1
Provisions
4.1, 4.7 2.3 2.0
Interest-bearing loans and borrowings
6.1, 6.3 292.7 227.3
Lease liabilities
6.1, 6.3 35.3 44.3
Other liabilities
6.3 5.4 1.3
Total non-current liabilities 346.7 288.9
Interest-bearing loans and borrowings
6.1, 6.3 5.8 105.2
Lease liabilities
6.1, 6.3 22.3 22.5
Trade payables
5, 6.3 135.9 99.9
Income tax payable
5 7.5 1.2
Other liabilities
5, 6.3 101.5 93.6
Provisions
4.1, 4.7 13.8 17.4
Total current liabilities 286.8 339.8
Total liabilities 633.5 628.7
Total equity and liabilities 841.2 763.5
Financial Statements
Independent auditor’s report
NILFISK ANNUAL REPORT 202151
Consolidated financial statements Parent financial statements Management’s statement
Management Review
Notes to the consolidated financial statementsStatement of financial positionIncome statement and statement of comprehensive income Cash flow statement Statement of changes in equity
Cash ow statement
for the years ended December 31
EUR million Note 2021 2020
Operating prot 79.7 22.1
Depreciation, amortization, and impairment
2.5 60.2 68.5
Other non-cash adjustments
7.4 -6.0 7.5
Changes in working capital -42.6 15.4
Cash ow from operations before nancial items and income taxes 91.3 113.5
Financial income received 2.3 0.9
Financial expenses paid -10.0 -15.7
Income tax paid -8.9 -9.2
Cash ow from operating activities 74.7 89.5
Purchase of property, plant, and equipment
4.4 -5.8 -5.4
Sale/disposal of property, plant, and equipment 0.1 0.8
Purchase of intangible assets
4.3 -11.7 -11.6
Purchase of nancial assets -0.1 -1.3
Disposal of nancial assets - 0.2
Dividends received from associates
6.2 1.3 1.3
Cash ow from investing activities -16.2 -16.0
Free cash ow 58.5 73.5
Changes in current interest-bearing receivables 1.0 1.5
Changes in current interest-bearing loans and borrowings -102.1 100.3
Changes in non-current interest-bearing loans and borrowings 69.1 -153.5
Payment of lease liabilities -24.4 -26.4
Cash ow from nancing activities
6.1 -56.4 -78.1
Net cash ow for the year 2.1 -4.6
Cash at bank and in hand, January 1 13.1 19.3
Exchange rate adjustments -0.2 -1.6
Net cash ow for the year 2.1 -4.6
Cash at bank and in hand, December 31 15.0 13.1
Financial Statements
Independent auditor’s report
NILFISK ANNUAL REPORT 202152
Consolidated financial statements Parent financial statements Management’s statement
Management Review
Notes to the consolidated financial statementsStatement of financial positionIncome statement and statement of comprehensive income Cash flow statement Statement of changes in equity
2021 2020
EUR million Share capital
Foreign
exchange reserve Hedging reserve Retained earnings Total equity Share capital
Foreign
exchange reserve Hedging reserve Retained earnings Total equity
Equity, January 1 72.9 -14.9 -0.9 77.7 134.8 72.9 4.3 -0.4 81.2 158.0
Other comprehensive income
Exchange rate adjustments - 14.2 - - 14.2 - -19.2 - - -19.2
Value adjustment of hedging instruments:
Value adjustment for the year - - 5.6 - 5.6 - - 0.2 - 0.2
Transferred to cost of sales - - 0.7 - 0.7 - - - - -
Transferred to nancial income and expenses - - - - - - - -0.6 - -0.6
Actuarial gains (losses) on dened benet plans - - - 1.9 1.9 - - - -1.5 -1.5
Tax on actuarial gains (losses) on dened benet plans - - - -0.3 -0.3 - - - 0.4 0.4
Tax on value adjustment of hedging instruments - - -1.4 - -1.4 - - -0.1 - -0.1
Total other comprehensive income - 14.2 4.9 1.6 20.7 - -19.2 -0.5 -1.1 -20.8
Prot (loss) for the year - - - 51.0 51.0 - - - -2.6 -2.6
Comprehensive income for the year - 14.2 4.9 52.6 71.7 - -19.2 -0.5 -3.7 -23.4
Share option program - - - 1.2 1.2 - - - 0.2 0.2
Total changes in equity - 14.2 4.9 53.8 72.9 - -19.2 -0.5 -3.5 -23.2
Equity, December 31 72.9 -0.7 4.0 131.5 207.7 72.9 -14.9 -0.9 77.7 134.8
Statement of changes in equity
for the years ended December 31
Financial Statements
Independent auditor’s report
NILFISK ANNUAL REPORT 202153
Consolidated financial statements Parent financial statements Management’s statement
Management Review
Notes to the consolidated financial statementsStatement of financial positionIncome statement and statement of comprehensive income Cash flow statement Statement of changes in equity
This section describes the applied
reporting framework, including a
denition of materiality for disclosures
as well as any changes in the accounting
policies for the consolidated nancial
statements.
1.1 Basis for preparation
Nilsk Holding A/S is a public limited company domiciled
in Denmark.
The consolidated nancial statements included in this Annual
Report for the year 2021 are prepared in accordance with
International Financial Reporting Standards, IFRS, as adopted
by the EU and additional requirements under the Danish
Financial Statements Act. The parent nancial statements are
prepared in accordance with the Danish Financial Statements
Act.
Basis for preparation
The consolidated nancial statements included in this Annual
Report are presented in EUR million rounded with one decimal.
The consolidated nancial statements included in this Annual
Report are prepared according to the historical cost principle.
The only exceptions are derivatives and nancial instruments in
a trading portfolio, which are measured at fair value.
Except for that stated in note 1.3, the accounting policies
described in the individual notes are applied consistently during
the nancial year and for the comparative gures.
Applying materiality
The provisions in IFRS contain extensive disclosure
requirements. The specic disclosures required according
Note 1 Basis for reporting
to IFRS are stated in the consolidated nancial statements
included in this Annual Report unless the disclosures
concerned are considered irrelevant or immaterial for nancial
decisions made by the nancial statement users.
The Group has operations in Argentina and is therefore subject
to Hyperination accounting (IAS 29). Based on an assessment
of materiality, IAS 29 has not been applied to our Argentinian
business as it is immaterial to the Nilsk Group.
Going concern
The Executive Management Board is required to decide whether
the consolidated nancial statements can be presented on a
‘going concern’ basis. Based on estimated future prospects,
expectations of future cash ows, existence of credit facilities,
etc., the Executive Management Board is of the opinion that
there are no factors giving reason to doubt whether Nilsk
Holding A/S can continue operating for at least 12 months from
the balance sheet date.
Principles of consolidation
The consolidated nancial statements incorporate the nancial
statements of Nilsk Holding A/S and entities controlled by
Nilsk Holding A/S. Control exists when Nilsk Group has
effective power over the entity and has the right to variable
returns from the entity.
Where necessary, adjustments have been made to the nancial
statements of subsidiaries to bring their accounting policies
in line with Nilsk Group policies. All intragroup transactions,
balances, income, and expenses are eliminated in full when
consolidated.
Translation of foreign currencies
Functional and presentation currency
Items included in the nancial statements of each of Nilsk
Group’s entities are measured using the currency of the primary
economic environment in which the entity operates (functional
currency). The consolidated nancial statements are presented
in Euro (EUR). The functional currency of Nilsk Holding A/S is
DKK. The presentation currency is EUR as the Nilsk Group’s
main business activities are EUR denominated and the internal
reporting is presented in EUR.
Translation of transactions and balances
Foreign currency transactions are translated into the functional
currency using the exchange rates prevailing at the transaction
dates. Foreign exchange gains and losses resulting from the
settlement of such transactions and from the translation at
year-end exchange rates of monetary assets and liabilities
denominated in foreign currencies are recognized in the income
statement.
Translation of Nilsk Group companies
Financial statements of foreign subsidiaries are translated into
EUR at the exchange rates prevailing at the end of the reporting
period for items in the statement of nancial position, and at
average exchange rates for income statement items.
All effects of exchange rate translations are recognized in
the income statement, with the exception of exchange rate
adjustments of investments in subsidiaries arising from:
• the translation of foreign subsidiaries’ net assets at the
beginning of the year to the exchange rates at the end
of the reporting period
• the translation of foreign subsidiaries’ statements of
comprehensive income from average exchange rates to
the exchange rates at the end of the reporting period
• the translation of non-current intragroup receivables
that are considered to be an addition to net investments
in subsidiaries
These specic exchange rate adjustments are recognized in
other comprehensive income.
NILFISK ANNUAL REPORT 202154
Financial Statements
Consolidated financial statements Parent financial statements Management’s statement
Management Review
Independent auditor’s report
Notes to the consolidated financial statementsStatement of financial positionIncome statement and statement of comprehensive income Cash flow statement Statement of changes in equity
1. Basis for reporting
2. Profit (loss) for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Other notes
Note Key accounting estimates and judgments
Estimate/
judgment
Impact of accounting
estimates and
judgments
2.4 Special items Determine the classication of special items Judgment Medium
2.8 Tax Estimate the value of the deferred tax assets and recognition of income taxes Estimate High
4.2 Impairment test Estimate of the value-in-use for intangible assets based on assumptions used
when impairment testing
Estimate High
4.5 Right-of-use assets Estimate of the lease period and discount rate when the underlying contract
can be prolonged or terminated early
Estimate Low
4.6 Pension liabilities Estimate the value of dened benet plans based on actuarial assumptions Estimate Low
4.7 Provisions Estimate the value of provisions Estimate Low
5.1 Inventories Determine the allocation of production overhead costs Judgment Low
Inventories Estimate the value of expected write-down Estimate Low
5.2 Trade receivables Estimate the value of expected credit losses Estimate Low
Key accounting estimates and judgments
When preparing the consolidated nancial 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 ows 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 signicant impact on recognition, classication, and
disclosures of amounts in the nancial statements.
Please refer to the specic notes for further information
on the key accounting estimates and judgments as well as
assumptions applied.
Particular risks referred to in the ‘Risk management’ section of
the Management Review and in Note 6.3 may have substantial
inuence on the nancial statements.
COVID-19
Compared to what was disclosed in the Annual Report
2020, the COVID-19 outbreak is considered to impose less
uncertainty on the nancial statements. With vaccine programs
progressing worldwide the future market situation is expected
to be less affected by COVID-19 compared to the situation at
year-end 2020. The nancial impacts of COVID-19 still require
signicant judgment and are included in the estimates of the
activity of the Group, the valuation of our asset base and the
liquidity situation.
As for any other signicant uncertainties we will, given the
evolving nature of the pandemic and the uncertainties involved,
monitor the situation and implication on the Group’s nancial
position, activities and cash ows and seek the appropriate
mitigating measures. As of December 31, 2021, we have
included updated estimates to assess the recoverability of
our asset base, including goodwill, development projects,
deferred tax assets and trade receivables. We have realized no
specic impairments of assets and no additional obligations or
liabilities have been recognized as a direct result of COVID-19.
Depending on the situation with COVID-19 in the future and
thereby the long-term impact for Nilsk, there is an inherent risk
that the estimates and judgments made in 2021 could change.
Future changes in estimates and judgment may have an impact
on the Group’s result and nancial position.
1.2 Key accounting estimates and judgments
NILFISK ANNUAL REPORT 202155
Financial Statements
Consolidated financial statements Parent financial statements Management’s statement
Management Review
Independent auditor’s report
Notes to the consolidated financial statementsStatement of financial positionIncome statement and statement of comprehensive income Cash flow statement Statement of changes in equity
1. Basis for reporting
2. Profit (loss) for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Other notes
Amendments to accounting standards that are
mandatorily effective for the current reporting period
The Nilsk Group has adopted the following new and revised
standards issued by IASB, which are effective for the current
reporting period that starts on January 1, 2021:
• Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 –
IBOR reform phase 2
The new and revised standards have not had a material impact
on accounting policies or disclosures for the period and are not
expected to have an impact on the Nilsk Group.
New and amended IFRS standards and interpretations
not yet adopted by the EU
IASB have issued a number of new standards, amendments
and new interpretations which could be relevant to Nilsk
Group, but which have not yet been adopted by the EU.
The new standards are not mandatory for the nancial
reporting for 2021. Nilsk Group expects to implement these
new standards, amendments, and interpretations when they
take effect. It is expected that none of the new standards,
amendments and interpretations that are not yet in effect will
have a material impact on recognition and measurement.
1.4 Implementation of new
regulations
ESEF regulation
The Commission Delegated Regulation (EU) 2019/815 on the
European Single Electronic Format Reporting (ESEF Regulation)
requires the use of a specic digital reporting format for
Annual Reports of listed companies. More precisely, the ESEF
Regulation contains requirements for the preparation of the
Annual Report in XHTML format with iXBRL marking of the
consolidated nancial statements in the form of income
statement, statement of comprehensive income, statement
of nancial position, cash ow statement and statement of
changes in equity.
The iXBRL marking of Nilsk Holding A/S has been made
against the ESEF taxonomy included in the annexes to the ESEF
Regulation and developed on the basis of the IFRS taxonomy
published by the IFRS Foundation. The 2020 version of the
ESEF taxonomy has been used in the annual report for 2021.
The accounting items in the consolidated nancial statements
are XBRL-marked for the elements of the ESEF taxonomy
that are assessed to correspond to the content of the
accounting items. For accounting items that are not assessed
to be covered by accounting items dened in the taxonomy,
company-specic extensions to the taxonomy (extensions)
have been incorporated. These extensions are – apart from
subtotals – anchored in elements of the ESEF taxonomy.
The annual report approved by management consists, in
accordance with the requirements of the ESEF Regulation, of a
zip le identied as “529900FSU45YYVLKB451-2021-12-31-
en.zip” containing an XHTML le that can be opened with
standard web browsers, and a series of technical XBRL les
that allow mechanical extraction of the incorporated XBRL data.
1.3 Implementation of new
or changed accounting standards
and interpretations
NILFISK ANNUAL REPORT 202156
Financial Statements
Consolidated financial statements Parent financial statements Management’s statement
Management Review
Independent auditor’s report
Notes to the consolidated financial statementsStatement of financial positionIncome statement and statement of comprehensive income Cash flow statement Statement of changes in equity
1. Basis for reporting
2. Profit (loss) for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Other notes
Revenue by operating segment Gross prot by operating segment
47%48% 53% 52%
8%
8%
8%
7%
9%
9%
7%
7%
30%
30%
29%
29%
2021 2021
Europe
Americas
APAC
Consumer
Private label & other
2020 2020
5%
6% 4%
4%
This note relates to prot (loss) for
the year, including revenue, segment
information, research and development
costs, special items, amortization,
depreciation, and impairment, nancial
items, and income tax.
Key developments 2021
Revenue by operating segments is split between ve segments:
Europe, Americas, APAC, Consumer, and Private Label and
other.
Revenue increased from 832.9 mEUR to 994.9 mEUR in 2021,
corresponding to a 19.5% increase compared to 2020. This was
mainly due to positive organic growth across all markets and
customer segments.
Gross prot was 402.7 mEUR, up by 56.0 mEUR compared to
last year. Gross margin was 40.5%, down by 1.1 percentage
points compared to last year. The decrease was to a large
extent driven by higher freight and raw material costs.
Note 2 Prot (loss) for the year
NILFISK ANNUAL REPORT 202157
Financial Statements
Consolidated financial statements Parent financial statements Management’s statement
Management Review
Independent auditor’s report
Notes to the consolidated financial statementsStatement of financial positionIncome statement and statement of comprehensive income Cash flow statement Statement of changes in equity
1. Basis for reporting
2. Profit (loss) for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Other notes
Segment information
The segment information is based on internal management
reporting and is presented in accordance with the Nilsk
Group’s accounting policies.
Segment income and expenses include those items that
are directly attributable to the individual segment and those
items that can be reliably allocated to it.
Operating segments
The reportable segments are generally referred to as
operating segments. The operating segments consist of
Europe, Americas, APAC, Consumer and Private Label and
other.
Europe, Americas, and APAC cover sales of professional
products to markets globally, excluding sales in the
carved out segments Consumer and Private Label and
other. Consumer covers domestic vacuum cleaners and
high-pressure washers for the consumer markets. Private
Label and other covers high-pressure washers and vacuum
cleaners in both the consumer and professional business,
sold in their own brands.
A further description of the operating segments is included in
the Management review.
The Executive Management Board assesses the revenue,
gross prot and EBITDA before special items of the operating
segments separately to enable decisions concerning
allocation of resources and measurement of performance.
Revenue in the operating segments
No single customer accounts for more than 10% of revenue.
The reportable segments are identied without aggregation
of operating segments.
Cost of sales in the operating segments
Cost of sales consists of costs incurred in generating the
revenue for the year. The cost of raw materials, consumables,
inbound freight, production staff and a proportion of
production overheads, including maintenance, amortization,
depreciation and impairment of intangible and tangible
assets used in production as well as operation, administration
and management of the production facilities are recognized
as cost of sales.
Cost of sales also include shrinkage, waste production and
any write-downs on inventory for obsolescence.
Sales and distribution costs
Sales and distribution costs include costs incurred for
distribution of goods and services sold and costs for
sales and distribution personnel, advertising costs, and
amortization, depreciation and impairment of intangible and
tangible assets used in the sales and distribution process.
Administrative costs
Administrative costs include costs of staff functions,
administrative personnel, oce costs, rent, lease payments,
amortization, depreciation, and impairment of intangible
and tangible assets not relating specically to cost of sales,
research and development, and sales and distribution
activities.
Assets in the operating segments
Because the production units deliver products to several
operational segments and because the operating segments
in some cases use the same assets, it is not possible to
attribute assets reliably to the individual segments.
Geographical information
The revenue is allocated to geographical regions according to
the country to which the products and services are sold.
The non-current assets are allocated to the country in which
the individual entity is based and are comprised of the non-
current assets used in the operations of the geographical
segment, including intangible assets, property, plant and
equipment, investments in associates and other investments
and receivables.
2. Prot (loss) for the year – continued
Accounting policy
NILFISK ANNUAL REPORT 202158
Financial Statements
Consolidated financial statements Parent financial statements Management’s statement
Management Review
Independent auditor’s report
Notes to the consolidated financial statementsStatement of financial positionIncome statement and statement of comprehensive income Cash flow statement Statement of changes in equity
1. Basis for reporting
2. Profit (loss) for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Other notes
EUR million Europe Americas APAC
Non-
allocated
Total branded
professional Consumer
Private Label
and other Group
2021
Revenue 466.0 296.3 79.2 - 841.5 86.0 67.4 994.9
Gross prot 210.5 115.6 32.6 - 358.7 29.2 14.8 402.7
EBITDA before special items 125.4 56.1 10.1 -49.3 142.3 9.4 -7.4 144.3
Reconciliation to prot before income taxes:
Special items -4.4
Amortization, depreciation, and impairment -60.2
Share of prot from associates 0.6
Financial income 1.6
Financial expenses -13.2
Prot before income taxes 68.7
Gross margin 45.2% 39.0% 41.2% - 42.6% 34.0% 22.0% 40.5%
EBITDA margin before special items 26.9% 18.9% 12.8% - 16.9% 10.9% -11.0% 14.5%
2020
Revenue 396.6 247.6 65.8 - 710.0 76.0 46.9 832.9
Gross prot 183.1 100.5 25.5 - 309.1 25.6 12.0 346.7
EBITDA before special items 102.4 46.4 3.5 -52.5 99.8 7.3 -6.6 100.5
Reconciliation to prot before income taxes:
Special items -10.8
Amortization, depreciation, and impairment -67.6
Share of prot from associates 0.1
Financial income 0.6
Financial expenses -15.3
Prot before income taxes 7.5
Gross margin 46.2% 40.6% 38.8% - 43.5% 33.7% 25.6% 41.6%
EBITDA margin before special items 25.8% 18.7% 5.3% - 14.1% 9.6% -14.1% 12.1%
Nilsk reportable segments are based on a geographical split
of our branded professional business.
Non-allocated within the branded business contains costs
allocated to the branded business which cannot be directly
attributed to the individual geographical segments. The costs
cover shared distribution centers, shared marketing, IT and
research and development.
The Consumer business is reported separately. The Private
Label business area is reported under “Private Label and other”
including the remaining other business areas and corporate
costs that are not directly associated with any of the operating
segments.
“Private label and other” includes non-allocated costs.
Please see Management review for further information on
revenue development in the reportable segments.
2.1 Segment information
NILFISK ANNUAL REPORT 202159
Financial Statements
Consolidated financial statements Parent financial statements Management’s statement
Management Review
Independent auditor’s report
Notes to the consolidated financial statementsStatement of financial positionIncome statement and statement of comprehensive income Cash flow statement Statement of changes in equity
1. Basis for reporting
2. Profit (loss) for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Other notes
Revenue by geography
Revenue by geography Revenue by product line and service offering
Revenue by product line and service offering
Europe region
Americas region
Floorcare
Vacuum cleaners
APAC, Middle East
and Africa region
High-pressure washers
Aftermarket
34%
14%
30%
22%
2021
2020
61%
9%
30%
30%
2021
2020
62%
30%
8%
15%
22%
33%
30%
2.2 Revenue
Geographical information
Nilsk is present in more than 40 countries with own sales
companies reaching approximately 100 countries through
direct sales and dealers.
The table below shows a split of revenue based on the
geographical regions in which the customers are located.
Non-current assets are allocated based on the location of the
assets. The corporate headquarters located in Denmark is
included in the Europe region.
Revenue by country
The table below shows a split of revenue based on the
countries in which the customers are located.
EUR million 2021 2020
USA 253.4 25% 214.7 26%
Germany 115.9 12% 100.3 12%
France 113.0 11% 84.6 10%
UK 48.6 5% 42.5 5%
Denmark 44.8 5% 42.4 5%
Sweden 37.6 4% 28.4 3%
Canada 31.2 3% 22.9 3%
Netherlands 26.9 3% 23.6 3%
Italy 26.3 3% 21.0 3%
Spain 22.7 2% 20.9 3%
Other 274.5 27% 231.6 27%
Total 994.9 100% 832.9 100%
2021 2020
EUR million Revenue
Non-current
assets
1
Revenue
Non-current
assets
1
Europe region 602.8 276.0 511.9 290.9
Americas region 303.4 69.7 253.7 72.2
APAC, Middle East and
Africa region 88.7 38.2 67.3 36.2
Total 994.9 383.9 832.9 399.3
1
Non-current assets less deferred tax asset.
EUR million 2021 2020
Organic
growth
Floorcare 338.1 254.4 35.3%
Vacuum cleaners 217.9 182.5 20.2%
High-pressure washers 144.4 124.5 16.6%
Aftermarket 294.5 271.5 9.3%
Total 994.9 832.9 20.7%
NILFISK ANNUAL REPORT 202160
Financial Statements
Consolidated financial statements Parent financial statements Management’s statement
Management Review
Independent auditor’s report
Notes to the consolidated financial statementsStatement of financial positionIncome statement and statement of comprehensive income Cash flow statement Statement of changes in equity
1. Basis for reporting
2. Profit (loss) for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Other notes
2.2 Revenue – continued
Contract assets and liabilities
Generally, trade receivables are recognized at the same point
in time as revenue recognition and invoicing. Payment terms
vary within the different customer segments due to local and
specic agreements but are generally due within 30 to 90 days.
In some cases the Group receives upfront payments which
results in contract liabilities. Nilsk does not have contract
assets.
The Group splits contract liabilities into either deferred revenue
or prepayments from customers depending on the nature
of the payment and activity. Prepayments from customers
are primarily upfront payments for machines and services
that have not yet been delivered. Deferred revenue covers
unsatised performance obligations that have not yet been
recognized as revenue. These are mostly services but can also
be goods which have not yet been delivered or orders not yet
fullled.
EUR million 2021 2020
Prepayments from customers 1.6 2.8
Deferred revenue (non-current) 2.0 1.1
Deferred revenue (current) 7.6 5.9
Total contract liabilities 11.2 9.8
Set out below is the amount of revenue recognized from:
EUR million 2021 2020
Amounts included in contract liabilities
at the beginning of the year 8.7 6.8
Revenue from sale of goods for resale, nished goods
and service is recognized in the income statement when
transfer of control of products or services to a customer
has taken place. Sales are recognized when control of
the goods has transferred, meaning when the goods
are delivered to the customer, and there is no unfullled
obligation that could affect the customer’s acceptance
of the products.
Revenue from Aftermarket sales which include service
packages relating to products and contracts as well
as sale of parts, consumables and accessories is
recognized concurrently with the supply of those
services. Depending on the type of contract, service
revenue is recognized over time or at a point in time.
Some contracts include multiple deliverables, such as
the sale of machines and related installation services.
However, the installation is simple and does not include
an integration service and could be performed by
another party. Installation is not accounted for as a
separate performance obligation.
Where the contracts include multiple performance
obligations, the transaction price is allocated to each
performance obligation based on the stand-alone selling
prices. Where these are not directly observable, they are
estimated based on expected cost plus margin.
Revenue is measured at the agreed consideration
excluding VAT and taxes charged on behalf of third
parties. All discounts granted are recognized in the
revenue.
Please refer to note 4.7, “Provisions” regarding the
accounting policies for warranties.
Accounting policy
2.3 Research and development costs
The research and development spend increased by 2.5 mEUR
compared to the same period last year and total research and
development spend as a percentage of revenue decreased by
0.2 percentage point.
For further information see the research and development
comments in the Management review.
Research and development costs specication
EUR million 2021 2020
Staff costs 17.7 17.2
Other costs 7.9 5.9
Total research and development spend 25.6 23.1
Recognized as follows:
Expensed in the income statement 15.9 15.0
Capitalized 9.7 8.1
Total 25.6 23.1
R&D ratio (% of revenue) 2.6% 2.8%
Presented in the income statement:
Expensed in the income statement,
cf. above 15.9 15.0
Amortization, depreciation and impairment 13.2 16.7
Research and development costs
excluding special items 29.1 31.7
Special items - 1.3
Total 29.1 33.0
NILFISK ANNUAL REPORT 202161
Financial Statements
Consolidated financial statements Parent financial statements Management’s statement
Management Review
Independent auditor’s report
Notes to the consolidated financial statementsStatement of financial positionIncome statement and statement of comprehensive income Cash flow statement Statement of changes in equity
1. Basis for reporting
2. Profit (loss) for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Other notes
Development projects are recognized as intangible
assets when the projects are clearly dened and
identiable for which the technical feasibility, adequacy
of resources and a potential future market or internal
utilization can be demonstrated, and where it is
intended to manufacture or utilize the asset. This
assumes that the costs can be reliably determined,
and that there is also adequate certainty that the future
earnings or net selling prices can cover the carrying
amount as well as the development costs necessary for
nalizing the project.
Capitalized development projects are measured at cost
less accumulated amortization and impairment losses.
The costs include wages, amortization and other costs
relating to the Nilsk Group’s development activities.
On completion of the development work, the cost of
development projects is amortized on a straight-line
basis over their estimated useful life from the date the
asset is available for use. The amortization period is
3-8 years. The amortization base is reduced by any
impairment losses.
Accounting policy
2.4 Special items
EUR million 2021 2020
Business restructuring¹ 5.1 10.4
Divestment -0.7 0.4
Total 4.4 10.8
¹Cost saving program has been merged into business restructuring in 2021
Special items relating to business restructuring mainly consist
of redundancy and minor costs for write-downs and market
exits. For 2021, this related mainly to the leadership changes
announced on May 6, 2021. For 2020, this related to the
restructuring plan announced on May 15, 2020, the Consumer
exit costs and start-up costs for the new distribution center in
Ghent (Belgium).
Divestment income in 2021 and divestments costs in 2020
related to the divestments initiated in 2018.
No COVID-19 government support programs are included in
special items, as they relate to government support to cover
salary costs for employees still on payroll that were temporarily
sent home during the pandemic and hence recognized as
ordinary overhead costs. See note 2.6.
Special items are disclosed separately in the income statement,
due to the extraordinary nature of the items. Special items have
been reconciled to the income statement line items as specied
in the table below.
EUR million 2021 Special items 2021 adjusted 2020 Special items 2020 adjusted
Revenue 994.9 - 994.9 832.9 - 832.9
Cost of sales -592.2 - -592.2 -486.2 -3.2 -489.4
Gross prot 402.7 - 402.7 346.7 -3.2 343.5
Research and development costs -29.1 - -29.1 -31.7 -1.3 -33.0
Sales and distribution costs -227.6 -0.2 -227.8 -220.8 -4.0 -224.8
Administrative costs -63.8 -4.3 -68.1 -64.6 -2.3 -66.9
Other operating income 3.4 0.1 3.5 5.5 - 5.5
Other operating expenses -1.5 - -1.5 -2.2 - -2.2
Special items, net -4.4 4.4 - -10.8 10.8 -
Operating prot 79.7 - 79.7 22.1 - 22.1
Identication and classication of income and expenses
as special items is based on management’s judgment
of the individual income and expenses as being non-
recurring by nature.
Key accounting judgments
Special items consist of non-recurring income and
expenses that the Nilsk Group does not consider to be
a part of its ordinary operations such as restructuring
projects and gains and losses on divestments, including
impairment write-downs which are not presented as
discontinued operations.
Accounting policy
2.3 Research and development costs
– continued
NILFISK ANNUAL REPORT 202162
Financial Statements
Consolidated financial statements Parent financial statements Management’s statement
Management Review
Independent auditor’s report
Notes to the consolidated financial statementsStatement of financial positionIncome statement and statement of comprehensive income Cash flow statement Statement of changes in equity
1. Basis for reporting
2. Profit (loss) for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Other notes
2.6 Other operating Income
This note shows the split of amortization, depreciation, and
impairment for the Nilsk Group in the income statement.
Other operating income and expenses
Other operating income includes items of a secondary
nature relative to the operations of the enterprise,
including grant schemes, reimbursements and gains or
losses on sale of non-current assets. Gains or losses on
disposal of tangible or intangible assets are determined
as the selling price less the carrying amount at the time
of sale. Allowance for expected credit losses is also
included.
Government grants
Government grants are comprised of grants for
compensation for costs or losses already incurred and
recognized. Government grants are recognized when
there is reasonable assurance that the grants will be
received.
Government grants for compensation for costs or
losses incurred and recognized without resulting in
further future costs or losses are recognized in the
income statement as other operating income in the
period where the compensation is granted.
EUR million 2021 2020
Government grants 0.3 4.3
Other 3.1 1.2
Total 3.4 5.5
Accounting policy
2.5 Amortization, depreciation, and
impairment
Government grants amounted to 0.3 mEUR in 2021 (2020: 4.3
mEUR). The grants related to COVID-19 government support
programs to cover salary costs for employees still on payroll
that were temporarily sent home during the pandemic.
Amortization of acquisition-related intangibles was 3.0 mEUR
in 2021 (2020: 4.3 mEUR), hereof 0.1 mEUR included in cost
of sales (2020: 1.2 mEUR) and 2.9 mEUR included in sales and
distribution costs (2020: 3.1 mEUR).
Intangible
assets
Property, plant
and equipment Total
EUR million 2021 2020 2021 2020 2021 2020
Amortization
and depreciation:
Cost of sales 0.1 1.2 17.1 18.6 17.2 19.8
Research and
development costs 11.1 13.2 0.6 0.7 11.7 13.9
Sales and
distribution costs 3.1 3.4 9.9 9.4 13.0 12.8
Administrative costs 7.5 7.2 9.3 11.1 16.8 18.3
Total amortization
and depreciation 21.8 25.0 36.9 39.8 58.7 64.8
Impairment:
Research and
development costs 1.5 2.8 - - 1.5 2.8
Special items - 0.7 - 0.2 - 0.9
Total impairment 1.5 3.5 - 0.2 1.5 3.7
Total amortization,
depreciation, and
impairment 23.3 28.5 36.9 40.0 60.2 68.5
Specication of nancial items
Financial
income
Financial
expenses
EUR million 2021 2020 2021 2020
Interest on nancial assets measured
at amortized costs 0.6 0.5 7.7 10.9
Foreign exchange gains (losses) - - 1.0 0.5
Interest, lease liabilities - - 1.4 1.5
Other nancial items 1.0 0.1 3.1 2.4
Total 1.6 0.6 13.2 15.3
Financial items, net represented -11.6 mEUR in 2021 compared
to -14.7 mEUR in 2020.
Financial income increased by 1.0 mEUR, while nancial
expenses decreased by 2.1 mEUR compared to 2020. Interest
expenses decreased mainly due to lower net interest-bearing
debt.
2.7 Financial items
Financial income includes interest, dividends, gains
on receivables and transactions denominated in
foreign currencies, amortization of nancial assets etc.
Positive changes in the fair value of derivative nancial
instruments not designated as hedging arrangements
are also included.
Financial expenses include interest, losses on and
impairment of securities, payables and transactions
denominated in foreign currencies, amortization of
nancial liabilities, including lease commitments etc.
Negative changes in the fair value of derivative nancial
instruments not designated as hedging arrangements
are also included.
Accounting policy
NILFISK ANNUAL REPORT 202163
Financial Statements
Consolidated financial statements Parent financial statements Management’s statement
Management Review
Independent auditor’s report
Notes to the consolidated financial statementsStatement of financial positionIncome statement and statement of comprehensive income Cash flow statement Statement of changes in equity
1. Basis for reporting
2. Profit (loss) for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Other notes
2.8 Tax
The effective tax rate in 2021 of 25.8% was mainly impacted
by a protable year, moving the effective tax rate closer to the
weighted corporate income tax rate compared to 2020.
The effective tax rate in 2020 of 134.7% was mainly impacted
by the valuation of the tax assets of 7.2 mEUR.
Tax recognized in the income statement
EUR million 2021 2020
Tax for the year is specied as follows:
Tax on prot for the year 17.7 10.1
Tax on other comprehensive income 1.7 -0.3
Total tax for the year 19.4 9.8
Tax on prot for the year is specied as follows:
Current tax on prot for the year 13.9 6.4
Deferred tax 3.5 3.6
Prior year adjustment, current and deferred tax 0.3 0.1
Total tax on prot for the year 17.7 10.1
Tax on other comprehensive
income is specied as follows:
Value adjustment of hedging instruments 1.4 0.1
Actuarial gains (losses) on dened benet plans 0.3 -0.4
Total tax on other comprehensive income 1.7 -0.3
Tax rate
EUR million 2021 2020
Reconciliation of the effective tax rate for the year:
Calculated tax on prot before income taxes 15.1 22.0% 1.7 22.0%
Adjustment of calculated tax in foreign subsidiaries relative to 22% 1.7 2.6% 1.1 15.6%
Tax effect of:
Non-deductible expenses/non-taxable income -0.2 -0.3% 0.6 8.0%
Tax assets valuation allowances 0.7 1.0% 7.2 95.8%
Change in tax rate - - 0.3 4.0%
Non-recoverable withholding taxes - - 0.3 4.0%
Other taxes and adjustments 0.1 0.1% -1.2 -16.0%
Prior year adjustment 0.3 0.4% 0.1 1.3%
Effective tax rate 17.7 25.8% 10.1 134.7%
The Group recognizes deferred tax assets, including the
expected value of tax losses carryforwards, based on an
assessment of the recoverability of the deferred tax assets.
The assessment of the recoverability of the defer red tax
assets involve estimates by the Executive Management
Board as to the likelihood of the realization of the deferred
tax assets within a foreseeable future. This depends on a
number of factors including whether there will be sucient
taxable prots available in future periods, against which the
tax losses carryforwards can be utilized.
The Executive Management Board’s assessment of the
recoverability of the deferred tax assets is based on taxable
income projections which contain estimates of and tax
strategies for the future taxable income for the next 5 years
taking into account the general market conditions and the
Nilsk Group’s future development outlook. The projections
are based on the Group’s budget and mid-term targets, and
are inherently subject to uncertainty, as the realization of the
projections are dependent on the outcome of future events.
In the event that actual future taxable prots generated are
less than expected, and depending on the tax strate gies that
the Nilsk Group may be able to implement, impairment of
the deferred tax assets may be required.
It is the Executive Management Board’s assessment that
the budgets and mid-term targets are achievable and
supports the recognized deferred tax assets.
Nilsk operates in a large number of tax jurisdictions where
tax legislation is complex and subject to interpretation.
Management makes judgments on uncertain tax positions
to ensure recognition and measurement of tax assets and
liabilities.
Key accounting estimates
NILFISK ANNUAL REPORT 202164
Financial Statements
Consolidated financial statements Parent financial statements Management’s statement
Management Review
Independent auditor’s report
Notes to the consolidated financial statementsStatement of financial positionIncome statement and statement of comprehensive income Cash flow statement Statement of changes in equity
1. Basis for reporting
2. Profit (loss) for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Other notes
2.8 Tax – continued
Current tax payable and receivable is recognized in the
statement of nancial position as tax computed on the
taxable income for the year, adjusted for tax on taxable
income for prior years and for prepaid tax.
Tax for the year is comprised of current and deferred tax on
prot for the year, including adjustments to previous years
and changes due to change in tax rates. Tax for the year is
recognized in the income statement, unless the tax expense
relates directly to items included in other comprehensive
income or equity.
Deferred tax is measured according to the balance sheet
liability method on all temporary differences between the
carrying amount and the tax base of assets and liabilities.
Deferred tax is, however, not recognized with respect to
temporary differences on initial recognition of goodwill
and other items, apart from business combinations, where
temporary differences have arisen at the time of acquisition
without affecting the prot for the year or the taxable
income.
In cases where the computation of the tax base may
be made according to different tax rules, deferred tax is
measured on the basis of management’s intended use of
the asset and settlement of the liability, respectively.
Deferred tax assets, including the tax base of tax losses
allowed for carry-forward, are recognized under Other non-
current assets at their expected utilization value, either as
set-off against tax on future income, or as a set-off against
deferred tax liabilities in the same legal tax entity and
jurisdiction.
Deferred tax assets and tax liabilities are offset if the
company has a legal right to offset current tax assets and
tax liabilities and intends to settle current tax assets and tax
liabilities on a net basis or to realize the assets and settle
the liabilities simultaneously.
Deferred tax is adjusted for elimination of unrealized
intragroup prots and losses.
Deferred tax is measured according to the tax rules and the
tax rates of the relevant countries at the reporting date and
when the deferred tax is expected to materialize as current
tax. The change in deferred tax as a result of changes in tax
rates is recognized in the income statement. Changes to
deferred tax on items recognized in other comprehensive
income are however recognized on other comprehensive
income.
Accounting policy
Deferred tax assets and liabilities
EUR million 2021 2020
Specication of deferred tax assets and
liabilities:
Intangible assets -14.9 -21.2
Property, plant, and equipment 1.3 5.8
Current assets 4.9 5.8
Other non-current liabilities 6.5 7.3
Current liabilities 6.7 7.3
Tax base of tax loss carryforwards and credits 13.1 16.4
Valuation allowances -7.8 -7.8
Deferred tax assets/liabilities 9.8 13.6
Presentation of deferred tax:
Deferred tax assets 15.7 20.5
Deferred tax liabilities -5.9 -6.9
Deferred tax assets/liabilities 9.8 13.6
EUR million 2021 2020
Deferred tax assets, January 1 20.5 25.1
Deferred tax liabilities, January 1 -6.9 -7.0
Foreign exchange adjustment 0.4 0.2
Tax recognized in other comprehensive income -1.7 0.3
Deferred tax recognized in the income statement -2.5 -5.0
Deferred tax, December 31 9.8 13.6
NILFISK ANNUAL REPORT 202165
Financial Statements
Consolidated financial statements Parent financial statements Management’s statement
Management Review
Independent auditor’s report
Notes to the consolidated financial statementsStatement of financial positionIncome statement and statement of comprehensive income Cash flow statement Statement of changes in equity
1. Basis for reporting
2. Profit (loss) for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Other notes
Note 3 Remuneration
This note relates to remuneration to the
Board of Directors, Nilsk Leadership
Team and employees, including long-
term incentive programs.
3.1 Staff costs
Staff costs specication
EUR million 2021 2020
Wages and salaries 223.2 217.6
Long-term incentive programs 0.8 -0.2
Social security costs 28.2 25.8
Dened contribution plans 10.7 10.3
Dened benet plans 0.5 0.5
Total 263.4 254.0
Number of full-time employees, average 4,696 4,460
Staff costs per full-time employee (EUR thousand) 56.1 57.0
Staff costs increased by 4% and the average number of
employees increased by 5%. Average number of employees in
2021 was materially inuenced by increased activity level in the
production facilities compared to 2020.
Staff costs is comprised of wages and salaries,
remuneration, expenses under long-term incentive
programs, pensions, etc.
Remuneration to the Nilsk Leadership Team
2021 2020
EUR thousand
Executive
Management Board¹
Nilsk
Leadership Team Total
Executive
Management Board
Nilsk
Leadership Team Total
Salary and pension 5,798.5 2,330.8 8,129.3 1,925.7 3,212.0 5,137.7
Annual bonus 1,324.9 848.1 2,173.0 461.5 284.5 746.0
Long-term incentive programs 576.5 341.4 917.9 -62.3 14.4 -47.9
Other benets 174.3 117.6 291.9 42.6 163.4 206.0
Total 7,874.2 3,637.9 11,512.1 2,367.5 3,674.3 6,041.8
In 2021, the Board of Directors received a total remuneration of
0.6 mEUR (2020: 0.6 mEUR). The remuneration to the Executive
Management Board and the Nilsk Leadership Team has
increased from 6.0 mEUR in 2020 to 11.5 mEUR in 2021. The
remuneration includes salary and redundancy costs for the
former Executive Management Board of 5.5 mEUR.
Remuneration policy
Nilsk’s remuneration policy contains guidelines for setting and
approving the remuneration to the Board of Directors and the
salaries of the Nilsk Leadership Team.
The Board of Directors receive a xed remuneration, while
members of the Nilsk Leadership Team receive a xed
salary, a short-term cash-based incentive, and a long-term
share-based incentive. This structure ensures commonality of
interest between Management and shareholders of Nilsk and
maintains Management’s motivation to achieve both short- and
long-term strategic goals.
Composition of remuneration
The Executive Management Board’s remuneration consists of a
xed salary base, including pension and other customary non-
monetary benets such as a company car. The remuneration
further includes a short-term cash-based bonus program and a
long-term incentive program (see Note 3.3).
Remuneration to the Board of Directors
EUR thousand 2021 2020
Board of Directors 492.6 526.9
Audit Committee 26.8 33.0
Remuneration Committee 20.1 20.1
Nomination Committee 20.1 13.9
Total remuneration to the Board of Directors 559.6 593.9
The remuneration covers 10 board members in 2021 (2020: 11
board members) where of one of the members is not receiving
remuneration.
Accounting policy
¹Includes salary and redundancy costs for the former Executive Management Board, partly included in special items
3.2 Remuneration to the Board of Directors and the Nilsk Leadership Team
NILFISK ANNUAL REPORT 202166
Financial Statements
Consolidated financial statements Parent financial statements Management’s statement
Management Review
Independent auditor’s report
Notes to the consolidated financial statementsStatement of financial positionIncome statement and statement of comprehensive income Cash flow statement Statement of changes in equity
1. Basis for reporting
2. Profit (loss) for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Other notes
Phantom share program
In the period 2014 to 2016 a phantom share program granted
a number of employees the right to a potential payment. The
phantom share program was an alternative approach to be
part of the short-term bonus program. For the purpose of
calculating the outcome under the phantom share program,
the participants are treated as if they earn phantom shares
on a monthly basis in Nilsk Holding A/S up to the relevant
maximum number of phantom shares during the period
beginning April 1 in the year the phantom shares are granted
and the subsequent four years (the vesting period).
The participants are only entitled to the maximum number of
phantom shares if they remain employed during the vesting
period. Upon termination of the employment prior to the expiry
of the vesting period, the number of phantom shares earned
shall be calculated pro rata corresponding to the relevant part
of the vesting period in which the participant was employed.
The phantom shares can be exercised by the participants in
May following the four-year vesting period or the subsequent
two years in May. Remaining phantom shares were granted in
2016 and can be exercised in May 2022.
Phantom shares
Number of phantom shares
Avg. exercise price per
phantom share (DKK)
Avg. exercise price per
phantom share (EUR)
2021 2020 2021 2020 2021 2020
Outstanding, January 1 52,896 108,958 89 97 12 13
Exercised during the period -21,701 -56,062 98 127 13 17
Outstanding, December 31 31,195 52,896 83 89 11 12
Weighted average share price at the exercise date during the period 189 89 25 12
Number of phantom shares fully vested at the balance sheet date 31,195 52,896
Weighted average remaining contractual life (months) 0 0
The value of the phantom shares is based on the market
value of the Nilsk Holding A/S shares traded on Nasdaq.
When participants exercise phantom shares the value of the
phantom shares are based on the average share price for the
month prior to the exercise. In 2021, 21,701 phantom shares
were exercised, which leaves the total number of outstanding
phantom shares on December 31, 2021 at 31,195.
Nilsk has entered hedge contracts to match the exposure on
the long-term incentive programs. Accordingly, the ongoing
value adjustments related to the outstanding phantom share
program will be offset by a similar hedge (see Note 6.3). The
development in outstanding phantom shares in 2021 and 2020
is reected below.
The Black & Scholes model has been applied for calculation of
the fair value of the phantom shares. The expected volatility
is based on the historical share price volatility for the Nilsk
Holding share from the date of listing. It is expected that the
phantom shares on average will be exercised between the
vesting date and the expiry date.
The expense for all long-term incentive programs is calculated
under the provision for share-based payments in accordance
with IFRS 2.
The phantom share program is recognized under other
liabilities with the amount of 0.6 mEUR compared to 0.3
mEUR at the end of 2020. The performance share program
is recognized under equity with an amount of 2.2 mEUR
compared to 1.0 mEUR end of 2020.
Recognition of share-based payments in the income statement
is a net cost in 2021. The cost was 0.3 mEUR for the 2021
program and 0.7 mEUR for the 2020 program, which was
adjusted in 2021 to a higher expected achievement of targets.
The costs for 2021 and 2020 were partly offset by a net income
of 0.2 mEUR due to a reversal of the 2019 program. Hence total
costs came to 0.8 mEUR compared to an income of 0.2 mEUR
in 2020.
In addition, 0.4 mEUR related to performance share costs for
the former Executive Management Board was recognized as
special items.
Recognition of share-based payments
EUR million 2021 2020
Performance share program 0.8 -0.2
Total 0.8 -0.2
3.3 Long-term incentive programs
NILFISK ANNUAL REPORT 202167
Financial Statements
Consolidated financial statements Parent financial statements Management’s statement
Management Review
Independent auditor’s report
Notes to the consolidated financial statementsStatement of financial positionIncome statement and statement of comprehensive income Cash flow statement Statement of changes in equity
1. Basis for reporting
2. Profit (loss) for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Other notes
The Nilsk Group’s long-term incentive programs
include a performance share program and a phantom
share program for Nilsk Leadership Team and selected
key employees.
The performance share program is accounted for as
an equity-settled share-based payment to employees
and measured at the fair value of the option. The Total
Shareholder Return (TSR vesting condition) is measured
at grant date, whereas estimated EBITDA (vesting
condition) will be updated based on the plans approved
by the board.
The fair value is expensed on a straight-line basis over
a period of three years. At the end of the period the
participants will be awarded shares corresponding to
the achieved targets.
The phantom share program is accounted for as
cash-settled share-based payments. An expense and
a liability are recognized for the service acquired on
a straight-line basis over the vesting period for the
individual portion of the program that vests in the
specic month, measured initially at the fair value of
the liability. At the end of each reporting period until the
liability is settled, and at the date of settlement, the fair
value of the liability is re-measured with any changes in
fair value recognized in the income statement for the
year.
Please see Note 6.3 for hedge accounting policy.
Performance share program
In line with the remuneration policy approved by the Annual
General Meeting in March 2021, the Nilsk Leadership
Team and selected key employees have been awarded
performance shares with a three-year cliff vesting depending
on performance measures on EBITDA and Total Shareholder
Return (TSR).
In 2021, 29 employees were offered participation in the 2021
program with a total of 87,020 performance shares equal to
0.33% of the total number of shares in Nilsk Holding A/S. The
selected key employees outside the Nilsk Leadership Team
have been offered the opportunity to participate in return for a
reduction in their annual bonus. Nilsk has expensed 0.3 mEUR
relating to the 2021 performance share program. The number
of outstanding shares were 87,020 on December 31, 2021.
Based on the performance in the vesting period, the awarded
performance shares in 2019 have been fully reversed in
2021 as the performance conditions were not met. For the
performance share program awarded in 2020 the number of
outstanding shares were 133,924 on December 31, 2021.
Nilsk has recorded an expense of 0.5 mEUR in 2021 relating to
the awarded performance shares in 2019 and 2020.
Upon exercise of the performance shares awarded, Nilsk
Holding A/S is entitled to settle in cash. As Nilsk Holding A/S
does not currently have an intention to settle the shares in
cash upon exercise the program is accounted for as an equity-
settled program.
The performance share program measures have been divided
into two separate categories:
1. EBITDA is dened as a non-market condition and is based on
the company’s expectations for future nancial results.
2. TSR is dened as a market condition which is based on a
Monte Carlo simulation to determine the expected increase
in share price over the period. Since the TSR is dened as a
market condition the valuation is xed at grant date.
Performance shares
Number of performance shares
Avg. exercise price per
performance share (DKK)
Avg. exercise price per
performance share (EUR)
2021 2020 2021 2020 2021 2020
Outstanding, January 1 191,714 100,043 171 291 23 39
Granted during the period 87,020 144,103 178 134 24 18
Forfeited during the period -57,790 -52,432 - - - -
Outstanding, December 31 220,944 191,714 150 171 20 23
Weighted average remaining contractual life (months) 17 21
Accounting policy
3.3 Long-term incentive programs – continued
NILFISK ANNUAL REPORT 202168
Financial Statements
Consolidated financial statements Parent financial statements Management’s statement
Management Review
Independent auditor’s report
Notes to the consolidated financial statementsStatement of financial positionIncome statement and statement of comprehensive income Cash flow statement Statement of changes in equity
1. Basis for reporting
2. Profit (loss) for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Other notes
46%
47%
10%
9%
8%
8%
13%
13%
Denmark
USA
China
Hungary
Other
23%
23%
2021
2020
Note 4 Capital employed
Property, plant and equipment and intangible assets
by country excluding goodwill
EUR million 2021 2020
Denmark 81.8 95.6
USA 22.5 25.2
China 18.8 17.1
Hungary 15.0 16.9
Other 42.4 44.8
Total 180.5 199.7
This note covers Nilsk Group’s
investments in non-current assets
that form the basis for the Group’s
operations, and non-current liabilities
arising as a result thereof.
The non-current liabilities in this section are regarded as
non-interest-bearing and are comprised of employee pension
benets and provisions. Interest-bearing receivables and
liabilities are covered in Note 6.
The Nilsk Group mainly invests in production equipment to
ensure satisfactory delivery ow to customers. Investments in
intangible assets are driven by development projects focusing
on renewing and optimizing the product portfolio and on
software in relation to front-end applications and ERP systems.
Production sites in Nilsk are mostly assembly lines and they
are therefore not capital-intensive in terms of xed assets.
4.1 Capital employed
EUR million 2021 2020
Non-current assets less interest-bearing receivables 397.6 418.6
Provisions, pension, and deferred tax liabilities -27.1 -33.4
Working capital 175.7 131.6
Capital employed 546.2 516.8
Capital employed increased by 29.4 mEUR compared to 2020.
The development in capital employed was largely driven by an
increase in working capital.
In 2021, Nilsk’s return on capital employed (RoCE) increased
by 9.9 percentage points to 15.8% from 5.9% in 2020. The
decrease was mainly driven by an increase in operating prot
before special items.
Property, plant and equipment and intangible assets
by country excluding goodwill
NILFISK ANNUAL REPORT 202169
Financial Statements
Consolidated financial statements Parent financial statements Management’s statement
Management Review
Independent auditor’s report
Notes to the consolidated financial statementsStatement of financial positionIncome statement and statement of comprehensive income Cash flow statement Statement of changes in equity
1. Basis for reporting
2. Profit (loss) for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Other notes
4.2 Impairment test
Impairment test on goodwill allocated to cash-generating
units as of December 31, 2021
Impairment tests are performed for each cash-generating
unit based on budget for 2022 and forecasts for 2023-2026.
The impairment tests performed for the cash-generating
units (CGU) show a comfortable headroom as of December
31, 2021 and no indication of impairment exists in any of the
CGUs.
Assumptions applied in the impairment test
The future cash ows are based on budgets and
Management’s estimates of the Nilsk Group’s development
in the next ve years. The assumptions for the impairment
tests are:
Revenue growth:
Projections in the forecasting period for the individual CGUs
are estimated on the basis of expected market development
including strategic initiatives, autonomous machines, and the
macroeconomic environment in general. Past experience is
taken into consideration as well as the expected impact from
growth initiatives.
Gross margin development:
When estimating the CGUs’ margin development in
the forecasting period, past experience and the impact
from expected eciency improvements are taken into
consideration. The expected impact of initiatives such as
component standardization through value engineering and
platforming and other initiatives is taken into consideration
for the relevant CGUs.
Net working capital:
The development is linked to the current level, budgets, and
revenue growth.
Terminal growth:
The terminal growth rate does not exceed the expected long-
term average growth rate including ination for the segments
and countries in which we operate. The applied terminal
growth rate for all cash generating units was 1.0% compared
to 2.0% in 2020.
Capital expenditure:
The development is linked to the budgets and expected
future activity level, including only reinvestments.
Discount rate:
A pre-tax discount rate of 9.7% and a post-tax discount rate
of 7.9% compared to 10.3% and 8.4% respectively in 2020
has been applied in the performed impairment tests. The
discount rate has been applied to all CGUs, assuming our
targeted ratio between the market value of our debt and
equity value.
Development projects
Development projects/products completed and development
projects/products in progress includes capitalized
development costs for projects that support the Nilsk Next
strategy to become a global leading cleaning provider with
focus on digitalization and development of new products
within autonomous cleaning.
The value of the development projects is dependent on
a number of factors, including the timely and successful
completion of in-progress development projects as well as
the Group’s ability to successfully commercialize completed
development projects/products.
Since the products are under development or in the early
stages of the product life cycle, any assessment of market
potential, product performance and viability, customer
demand, potential impact from technological innovations
and competitor actions, marketing and services cost, the
ability to scale production and reduce productions costs
etc. is inherently subject to uncertainty. These uncertainties
are assessed though out the maturity of the projects and as
such, the risk is reduced the closer the projects gets to the
completion stage. Where possible, the estimates are based
on past experience, but also dependent on the outcome of
future events, which will be highly project dependant.
It is Management’s assessment that a signicant market
potential exists, and that the value-in-use of development
projects completed and development projects in progress
exceed the carrying amounts, under the assumptions
mentioned above.
Key accounting estimates
NILFISK ANNUAL REPORT 202170
Financial Statements
Consolidated financial statements Parent financial statements Management’s statement
Management Review
Independent auditor’s report
Notes to the consolidated financial statementsStatement of financial positionIncome statement and statement of comprehensive income Cash flow statement Statement of changes in equity
1. Basis for reporting
2. Profit (loss) for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Other notes
4.2 Impairment test – continued
Goodwill and intangible assets with indenite useful lives
are tested annually for impairment. Development and
software projects in progress are also tested annually for
impairment.
The carrying amount of goodwill is tested for impairment
together with the other non-current assets in the cash-
generating unit to which goodwill is allocated and written
down to the recoverable amount over the income statement
if the carrying amount is higher. The recoverable amount is
generally computed as the present value of the expected
future net cash ows (value in use) from the business or
activity (cash-generating unit) to which goodwill is allocated.
Other non-current assets
The carrying amount of other non-current assets is
reviewed annually for indication of impairment. If such an
indication exists, the recoverable amount of the asset is
determined. The recoverable amount is the fair value of the
asset less anticipated costs of disposal, or its value in use,
whichever is the higher. The value in use is calculated as the
present value of expected future cash ows from the asset
or the cash-generating unit of which the asset is part.
Impairment loss
Impairment is recognized if the carrying amount of an
asset or a cash-generating unit exceeds the respective
recoverable amount thereof. The impairment is recognized
in the income statement under the functions it relates to.
Gain or loss of divestment of businesses is recognized as
special items.
Impairment of goodwill is not reversed. Impairment of
other assets is reversed in the event of changes having
taken place in the conditions and estimates on which the
impairment calculation was based. Impairment is only
reversed if the new carrying amount of the asset does not
exceed the carrying amount that would have applied after
amortization if the asset had not been impaired.
The Group has conducted an analysis of the
sensitivity of the impairment test to changes in the key
assumptions used to determine the recoverable amount
for each of the segments (CGUs) to which goodwill is
allocated. Management believes that any reasonably
possible change in the key assumptions on which the
recoverable amount is based would not cause the
carrying amount to exceed the recoverable amount of
the related segments (CGUs).
Allocation of goodwill on cash-generating units
Goodwill is allocated to the reportable segments.
The calculation of EBITDA for each cash-generating unit
is based on certain judgment relating to allocation of
future EBITDA which is allocated to the cash-generating
units.
The carrying amount of goodwill per cash-generating
unit as of December 31, is as follows:
EUR million 2021 2020
Europe 121.8 119.5
Americas 32.2 31.7
APAC 14.0 13.7
Consumer 1.1 1.1
Total 169.1 166.0
The change in the goodwill balances from January 1,
2021 to December 31, 2021 relates to exchange rate
adjustments during the year.
Key accounting judgments Accounting policy
Sensitivity
NILFISK ANNUAL REPORT 202171
Financial Statements
Consolidated financial statements Parent financial statements Management’s statement
Management Review
Independent auditor’s report
Notes to the consolidated financial statementsStatement of financial positionIncome statement and statement of comprehensive income Cash flow statement Statement of changes in equity
1. Basis for reporting
2. Profit (loss) for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Other notes
4.3 Intangible assets
2021 2020
EUR million Goodwill
Trade-
marks
1
Customer
related
assets
Development
projects
completed
Software,
Know-how,
Patents and
Competition
Clauses
Development
projects and
software in
progress Total Goodwill
Trade-
marks
1
Customer
related
assets
Development
projects
completed
Software,
Know-how,
Patents and
Competition
Clauses
Development
projects and
software in
progress Total
Costs, January 1 166.0 23.0 29.2 146.5 94.2 23.2 482.1 168.5 24.3 31.2 152.0 86.7 35.9 498.6
Exchange rate adjustments 3.1 1.1 1.9 0.5 1.7 0.1 8.4 -2.5 -1.1 -1.8 0.5 -1.5 0.1 -6.3
Additions - - - 1.3 0.8 9.6 11.7 - - - 0.8 3.2 7.6 11.6
Disposals - - - - -1.8 -1.9 -3.7 - -0.2 -0.2 -14.3 -4.2 -2.9 -21.8
Transferred between classes of assets - - - 10.7 0.2 -10.9 - - - - 7.5 10.0 -17.5 -
Costs, December 31 169.1 24.1 31.1 159.0 95.1 20.1 498.5 166.0 23.0 29.2 146.5 94.2 23.2 482.1
Amortization and impairment,
January 1 - -15.2 -23.1 -121.7 -63.6 -1.8 -225.4 - -14.7 -22.7 -112.9 -59.3 -1.9 -211.5
Exchange rate adjustments - -0.4 -1.1 -0.6 -1.8 -0.1 -4.0 - 0.4 1.1 -0.2 1.4 0.1 2.8
Amortization for the year - -1.2 -1.7 -10.9 -8.0 - -21.8 - -1.1 -1.6 -13.3 -9.0 - -25.0
Impairment - - - - - -1.5 -1.5 - - - -0.7 - -2.8 -3.5
Disposals - - - - 1.8 1.9 3.7 - 0.2 0.1 5.4 3.3 2.8 11.8
Amortization and impairment,
December 31 - -16.8 -25.9 -133.2 -71.6 -1.5 -249.0 - -15.2 -23.1 -121.7 -63.6 -1.8 -225.4
Carrying amount, December 31 169.1 7.3 5.2 25.8 23.5 18.6 249.5 166.0 7.8 6.1 24.8 30.6 21.4 256.7
Investment ratio (% of amortizations) - - - 110% 13% - 104% - - - 62% 147% - 116%
1
Trademarks with a carrying amount of 2.7 mEUR (2020: 2.7 mEUR) are not amortized, as they are regarded as having an indenite useful life.
Impairment losses
In 2021, impairment losses of 1.5 mEUR were included in
research and development costs. The impairment losses were
a result of changed priorities in the R&D roadmap.
Impairment losses of 2.8 mEUR included in research and
development costs in 2020 were a result of simplication of the
product portfolio.
NILFISK ANNUAL REPORT 202172
Financial Statements
Consolidated financial statements Parent financial statements Management’s statement
Management Review
Independent auditor’s report
Notes to the consolidated financial statementsStatement of financial positionIncome statement and statement of comprehensive income Cash flow statement Statement of changes in equity
1. Basis for reporting
2. Profit (loss) for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Other notes
4.3 Intangible assets – continued
Goodwill
Goodwill is initially recognized in the statement of
nancial position at cost. Subsequently, goodwill is
measured at cost less accumulated impairment losses.
Goodwill is not amortized.
The carrying amount of goodwill is allocated to the Nilsk
Group’s cash-generating units at the acquisition date. The
identication of cash-generating units is based on the
managerial structure and internal nancial control. As
a result of the integration of acquisitions in the existing
Nilsk Group, and identication of operating segments
based on the presence of segment managers, the
Executive Management Board has assessed that the
smallest cash-generating units to which the carrying
amount of goodwill can be allocated during testing for
impairment are the reportable segments. The reportable
segments are comprised of the Nilsk Group’s operating
segments without aggregation (Note 2.1 Segment
information).
Other intangible assets
Other intangible assets are clearly identiable
development projects for which the technical feasibility,
adequacy of resources and a potential market or internal
utilization can be demonstrated, provided the costs can
be reliably determined and it is probable it will generate
future earnings.
Capitalized development projects are measured at cost
less accumulated amortization and impairment losses.
The costs include wages, amortization and other direct
costs relating to the individual development projects.
Intangible assets are amortized on a straight-line basis
over the expected useful life which is:
Trademarks, etc. Indenite or 3-10 years
Customer related assets 3-15 years
Development projects 3-8 years
Software, know-how, patents
and competition clauses 2-15 years
On completion of the development work, development
projects are amortized on a straight-line basis over
their estimated useful life from the date the asset is
available for use. The basis of amortization is reduced by
impairment losses.
Patents and licenses are measured at cost less
accumulated amortization and impairment losses.
Patents and licenses are amortized on a straight-line
basis over the remaining patent or contract period or the
useful life, whichever is the shorter.
Intangible assets with an indenite useful life are not
amortized but are tested annually for impairment.
Accounting policy
NILFISK ANNUAL REPORT 202173
Financial Statements
Consolidated financial statements Parent financial statements Management’s statement
Management Review
Independent auditor’s report
Notes to the consolidated financial statementsStatement of financial positionIncome statement and statement of comprehensive income Cash flow statement Statement of changes in equity
1. Basis for reporting
2. Profit (loss) for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Other notes
4.4 Property, plant, and equipment
2021 2020
EUR million
Land and
buildings
Plant and
machinery
Tools and
equipment
Assets under
construction
incl. prepayment Total
Land and
buildings
Plant and
machinery
Tools and
equipment
Assets under
construction
incl. prepayment Total
Costs, January 1 19.4 14.2 133.2 3.1 169.9 19.7 16.1 135.4 3.7 174.9
Exchange rate adjustments 1.5 0.7 3.9 - 6.1 -0.4 -0.7 -4.3 -0.1 -5.5
Additions - 0.1 6.5 5.1 11.7 0.1 0.1 5.7 3.5 9.4
Disposals - -0.3 -7.9 - -8.2 - -1.8 -6.6 -0.5 -8.9
Transferred between classes of assets - 1.2 3.9 -5.1 - - 0.5 3.0 -3.5 -
Costs, December 31 20.9 15.9 139.6 3.1 179.5 19.4 14.2 133.2 3.1 169.9
Depreciation and impairment, January 1 -11.5 -10.8 -103.8 - -126.1 -11.2 -12.1 -100.4 - -123.7
Exchange rate adjustments -0.7 -0.5 -3.0 - -4.2 0.2 0.6 3.0 - 3.8
Depreciation for the year -0.4 -0.9 -11.6 - -12.9 -0.5 -0.9 -11.8 - -13.2
Impairment - - - - - - -0.2 - - -0.2
Disposals - 0.3 7.3 - 7.6 - 1.8 5.4 - 7.2
Depreciation and impairment,
December 31 -12.6 -11.9 -111.1 - -135.6 -11.5 -10.8 -103.8 - -126.1
Carrying amount, December 31 8.3 4.0 28.5 3.1 43.9 7.9 3.4 29.4 3.1 43.8
Investment ratio (% of depreciation) - 144% 90% - 130% 20% 67% 74% - 97%
Impairment losses
No impairment losses were recognized in 2021.
In 2020, impairment losses of 0.2 mEUR were included in
special items. The impairment loss was related to closedown
of the warehouse in Denmark.
NILFISK ANNUAL REPORT 202174
Financial Statements
Consolidated financial statements Parent financial statements Management’s statement
Management Review
Independent auditor’s report
Notes to the consolidated financial statementsStatement of financial positionIncome statement and statement of comprehensive income Cash flow statement Statement of changes in equity
1. Basis for reporting
2. Profit (loss) for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Other notes
4.4 Property, plant, and equipment – continued
Land and buildings, plant and machinery, tools and
equipment, and other property, plant, and equipment, are
measured at cost less accumulated depreciation and
impairment losses.
The costs are comprised of the purchase price and any
costs directly attributable to the acquisition until the
asset is ready for use. The costs of self-constructed
assets are comprised of costs of materials, components,
subcontractors, and wages. The costs are supplemented
by the present value of estimated liabilities related to
dismantling and removing the asset and restoring the site
on which the asset was utilized.
Subsequent costs, e.g. relating to replacement of parts of
an item of property, plant, and equipment, are recognized in
the carrying amount of the asset if it is likely that the costs
will result in future economic benets for the Nilsk Group.
The carrying amount of the replaced parts is derecognized
in the statement of nancial position and recognized in the
income statement. All other costs relating to ordinary repair
and maintenance are recognized in the income statement
as incurred.
If individual parts of an item of property, plant and
equipment have different useful lives, they are depreciated
separately.
Property, plant, and equipment are depreciated on a
straight-line basis over the expected useful lives which is:
Buildings 8-50 years
Plant and machinery 3-20 years
Tools and equipment 3-15 years
Land is not depreciated
The basis of depreciation is calculated according to
the residual value less impairment losses. The residual
value is determined at the acquisition date and reviewed
annually. If the residual value exceeds the carrying amount,
depreciation is discontinued.
When changing the depreciation period or the residual value,
the effect on the depreciation is recognized prospectively as
a change in accounting estimates.
Property, plant and equipment under construction and
prepayments are measured at cost. When ready for use,
the asset is transferred to the relevant category and
depreciated.
Accounting policy
NILFISK ANNUAL REPORT 202175
Financial Statements
Consolidated financial statements Parent financial statements Management’s statement
Management Review
Independent auditor’s report
Notes to the consolidated financial statementsStatement of financial positionIncome statement and statement of comprehensive income Cash flow statement Statement of changes in equity
1. Basis for reporting
2. Profit (loss) for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Other notes
4.5 Right-of-use assets
2021 2020
EUR million
Land and
buildings
Plant and
machinery
Tools and
equipment Total
Land and
buildings
Plant and
machinery
Tools and
equipment Total
Costs, January 1 76.7 3.5 30.2 110.4 49.7 2.9 27.0 79.6
Exchange rate adjustments 1.9 - 0.4 2.3 -1.8 - -0.9 -2.7
Additions 7.4 1.6 7.2 16.2 30.1 1.1 7.6 38.8
Disposals -4.7 -0.4 -4.8 -9.9 -1.3 -0.5 -3.5 -5.3
Costs, December 31 81.3 4.7 33.0 119.0 76.7 3.5 30.2 110.4
Depreciation and impairment, January 1 -28.7 -1.9 -14.6 -45.2 -14.7 -1.0 -9.4 -25.1
Exchange rate adjustments -2.1 - -0.7 -2.8 0.5 - 1.3 1.8
Depreciation for the year -14.8 -0.9 -8.3 -24.0 -15.4 -1.2 -10.0 -26.6
Disposals 4.4 0.3 4.5 9.2 0.9 0.3 3.5 4.7
Depreciation and impairment, December 31 -41.2 -2.5 -19.1 -62.8 -28.7 -1.9 -14.6 -45.2
Carrying amount, December 31 40.1 2.2 13.9 56.2 48.0 1.6 15.6 65.2
Not recognized right-of-use assets and liabilities
The Group has signed lease contracts in which the assets
were not available for use by the Group at year-end. The value
of these right-of-use assets and corresponding liabilities are
not included in the statement of nancial position but will be
included when the assets are available for use by the Group.
Total minimum payments for signed but not recognized
contracts are 5.2 mEUR (2020: 2.2 mEUR)
Lease contracts recognized as overhead costs
Short-term and low value lease contracts are expensed directly
as overhead costs. For 2021, the overhead costs amounted to
0.7 mEUR (2020: 1.5 mEUR).
The expected overhead costs relating to short-term and low
value lease contracts are 1.5 mEUR for 2022.
Payments relating to lease arrangements
Total cash-out for right-of-use assets recognized in the
statement of nancial position in the year was 25.8 mEUR
(2020: 27.9 mEUR). The amount is made up from repayment
of lease liabilities of 24.4 mEUR (2020: 26.4 mEUR) and interest
of 1.4 mEUR (2020: 1.5 mEUR).
See note 6.1 for development of the lease liabilities.
See note 6.3 for maturity analysis of the lease liabilities.
NILFISK ANNUAL REPORT 202176
Financial Statements
Consolidated financial statements Parent financial statements Management’s statement
Management Review
Independent auditor’s report
Notes to the consolidated financial statementsStatement of financial positionIncome statement and statement of comprehensive income Cash flow statement Statement of changes in equity
1. Basis for reporting
2. Profit (loss) for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Other notes
Leases are recognized as right-of-use assets with the
corresponding liability at the time the asset is available
for use by the Group. Assets and liabilities arising from
a lease are measured on a present value basis.
Lease liabilities are comprised of expected xed
payments throughout the expected lease period
(including options to extend the lease when exercise is
reasonably certain), less any lease incentives. The lease
payments are discounted using the contract’s internal
discount rate or the Group’s incremental borrowing rate.
The costs of right-of-use assets are comprised of the
calculated lease liabilities, payments made prior to
entering the lease, initial direct costs, and expected
restoration costs.
Right-of-use assets and lease liabilities are re-measured
when a factual or contractual change is executed or if a
signicant event or change affects the expected use of
the assets. The impact is discounted to a present value
basis.
Right-of-use assets are measured at cost, less
accumulated depreciation, and impairment losses.
When changing the value of right-of-use assets through
remeasurement or when changing the depreciation
period, the effect on the depreciation is recognized
prospectively as a change in accounting estimates.
Right-of-use assets are depreciated on a straight-line
basis of the expected length of the contract or the
expected useful lives of the assets, whichever is the
shorter.
Lease costs for low value assets and short-term leases
are included as overhead costs throughout the period
based on a straight-line basis.
4.5 Right-of-use assets – continued
The individual right-of-use assets and the corresponding
liabilities are highly impacted by the estimated lease
period and the discount rate, where the underlying
contracts can be prolonged or terminated early. As of
December 31, 2021 the estimated useful life can be
summarized as follows:
Leased buildings: 1-9 years, with a remaining average
of 2.2 years (2020: 1-9 years with
average of 2.4 years)
Other leases: 1-6 years with a remaining average
of 1.7 years (2020: 1-6 years with
average of 1.7 years)
Average discount rate for active contracts as of
December 31, 2021 was 2.8% (2020: 2.2%).
Key accounting estimates Accounting policy
NILFISK ANNUAL REPORT 202177
Financial Statements
Consolidated financial statements Parent financial statements Management’s statement
Management Review
Independent auditor’s report
Notes to the consolidated financial statementsStatement of financial positionIncome statement and statement of comprehensive income Cash flow statement Statement of changes in equity
1. Basis for reporting
2. Profit (loss) for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Other notes
4.6 Pension liabilities
Net liabilities recognized in the statement of nancial position
2021 2020
EUR million
Present value
of obligations
Fair value of
plan assets Net obligation
Present value
of obligations
Fair value of
plan assets Net obligation
Obligations and assets, January 1 31.7 24.6 7.1 30.8 24.9 5.9
Recognized under staff costs in the income statement:
Current service cost 0.5 - 0.5 0.5 - 0.5
Calculated interest expenses/income 0.3 0.3 - 0.4 0.4 -
Total 0.8 0.3 0.5 0.9 0.4 0.5
Recognized in other comprehensive income:
Actuarial gains (losses) from changes in
demographic assumptions - - - 0.1 - 0.1
Actuarial gains (losses) from changes in nancial
assumptions -2.0 - -2.0 2.1 - 2.1
Other return on plan assets - -0.1 0.1 - 0.7 0.7
Total -2.0 -0.1 -1.9 2.2 0.7 1.5
Other changes:
Contributions to plans 0.1 0.8 -0.7 0.2 0.8 -0.6
Benets paid/received 0.3 0.4 -0.1 -1.3 -1.2 -0.1
Exchange rate adjustments 1.8 1.6 0.2 -1.3 -1.0 -0.3
Total 2.2 2.8 -0.6 -2.4 -1.4 -1.0
Net recognized plan obligations and assets,
December 31 32.7 27.6 5.1 31.5 24.6 6.9
Other long-term employee benets - - - 0.2 - 0.2
Recognized, December 31 32.7 27.6 5.1 31.7 24.6 7.1
EUR million 2021 2020
Plan assets recognized as follows:
Securities with quoted market price 19.0 19.3
Cash 1.9 0.2
Other 6.7 5.1
Total 27.6 24.6
Most employees in the Nilsk Group are covered by pension
schemes, primarily in the form of dened contribution-based
plans or alternatively by dened benet plans.
The Nilsk Group companies contribute to these plans either
directly or by contributing to pension funds administered
independently. The nature of such schemes varies according to
legislative and regulatory regimes, rules regarding tax and the
economic conditions in the countries in which the employees
work. The contributions are usually based on employee salary
and seniority. The liability relates to pensions for already retired
staff as well as for employees retiring in the future.
The Nilsk Group’s dened benet plans primarily relate to the
UK, Germany, and Switzerland.
The present value of dened benet plans are based
on actuarial assumptions, and an increase/decrease in
these assumptions may lead to an increase/decrease in
the present value of the dened benet plans.
Principal actuarial assumptions at the
balance sheet date (as weighted average) 2021 2020
Discount rate 0.6% 0.6%
Future salary increases 1.0% 0.4%
Future pension increases 0.4% 1.3%
The anticipated duration of the plan liability, expressed
as a weighted average, was 14 years at December 31,
2021 (2020: 16 years). The Nilsk Group’s expected
contribution to dened benet plans in 2022 amounts to
0.4 mEUR (2020: 0.5 mEUR)
Key accounting estimates
NILFISK ANNUAL REPORT 202178
Financial Statements
Consolidated financial statements Parent financial statements Management’s statement
Management Review
Independent auditor’s report
Notes to the consolidated financial statementsStatement of financial positionIncome statement and statement of comprehensive income Cash flow statement Statement of changes in equity
1. Basis for reporting
2. Profit (loss) for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Other notes
The table below shows the sensitivity of the pension
liability to changes in the key assumptions
EUR million 2021 2020
0.5% point increase in the discount rate -2.5 -2.4
0.5% point decrease in the discount rate 2.8 2.7
0.5% point increase in the future salary
increases 0.3 0.3
0.5% point decrease in the future salary
increases -0.2 -0.3
4.6 Pension liabilities – continued
The Nilsk Group has contracted pension plans and
similar arrangements with the majority of its employees.
Liabilities with respect to dened contribution-based
pension plans, where the Nilsk Group makes xed
regular payments to independent pension companies,
are recognized in the income statement in the period
to which they relate. Any contributions outstanding are
recognized in the statement of nancial position under
other payables.
In the case of dened benet plans, an annual actuarial
calculation (the Projected Unit Credit Method) is made
of the present value of future benets payable under
the plan. The present value is determined based on
assumptions about the future development in variables
such as salary levels, interest rates, ination and
mortality. The present value is determined only for
benets earned by employees from their employment
with the Nilsk Group. The actuarial present value less
the fair value of any plan assets is recognized in the
statement of nancial position under employee benets.
Pension expenses for the year are recognized in the
income statement based on actuarial estimates and
nancial expectations at the start of the year. The
differences between calculated return and realized
return on plan assets and liabilities are designated
actuarial gains or losses and recognized in other
comprehensive income.
If a pension plan constitutes a net asset, the asset is
only recognized if it offsets cumulative actuarial losses
or future refunds from the plan, or if it will lead to
reduced future payments to the plan.
Accounting policySensitivity
NILFISK ANNUAL REPORT 202179
Financial Statements
Consolidated financial statements Parent financial statements Management’s statement
Management Review
Independent auditor’s report
Notes to the consolidated financial statementsStatement of financial positionIncome statement and statement of comprehensive income Cash flow statement Statement of changes in equity
1. Basis for reporting
2. Profit (loss) for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Other notes
4.7 Provisions
Development in provisions
EUR million Warranties Other Total
2021
Provisions, January 1 12.7 6.7 19.4
Exchange rate adjustments 0.3 0.3 0.6
Provisions made during the year 9.0 1.6 10.6
Used during the year -10.5 -4.0 -14.5
Provisions, December 31 11.5 4.6 16.1
Provisions are presented as:
Non-current liabilities - 2.3 2.3
Current liabilities 11.5 2.3 13.8
Total 11.5 4.6 16.1
2020
Provisions, January 1 11.4 3.7 15.1
Exchange rate adjustments 0.2 -0.2 -
Provisions made during the year 12.0 4.7 16.7
Used during the year -10.3 -1.5 -11.8
Reversed during the year -0.6 - -0.6
Provisions, December 31 12.7 6.7 19.4
Provisions are presented as:
Non-current liabilities - 2.0 2.0
Current liabilities 12.7 4.7 17.4
Total 12.7 6.7 19.4
Provisions are recognized when, as a result of events arising
before or at the balance sheet date, the Nilsk Group has a
legal or a constructive obligation, and it is more likely than
not, that the settlement is expected to result in an outow of
resources.
When measuring provisions, the costs required to settle
the obligation are discounted if this signicantly affects
the measurement of the liability. A pre-tax discount rate is
applied that reects the current market interest rate and the
specic risks relating to the obligation. Changes in present
values during the year are recognized under nancial
expenses.
Warranty commitments are recognized in step with sale of
goods and services based on the level of warranty expenses
incurred in previous years. Serial fault is included as a
warranty provision. Serial faults only become a warranty at
the time the items have left the factory and are up for sale.
Until then, handling faults are part of the quality review and
are recognized as such cost under cost of sales.
Provisions for restoring rented facilities when vacated are
measured at the present value of the expected clearance
and closure obligation at the balance sheet date. The
provision is based on existing encumbrances and estimated
costs discounted to present value. Specic risks considered
to attach to the obligation are included in the estimated
costs. A discount rate is applied which reects the current
market interest rate. The obligations are included as they
occur and are continuously adjusted to reect changed
requirements and price levels, etc. The present value of the
costs is included in the costs of the relevant tangible assets
and depreciated accordingly. The increase in the present
value over time is recognized in the income statement under
nancial expenses.
Other provisions include the restoration of rented facilities,
provisions related to restructuring, legal cases, etc.
The amount recognized as a provision is the Executive
Management Board’s best estimate of the amount
required to settle the obligation.
The warranty provision represents management’s
best estimate of the Group’s liability under 12-month
warranties granted on products, based on past
experience.
Key accounting estimates
Accounting policy
NILFISK ANNUAL REPORT 202180
Financial Statements
Consolidated financial statements Parent financial statements Management’s statement
Management Review
Independent auditor’s report
Notes to the consolidated financial statementsStatement of financial positionIncome statement and statement of comprehensive income Cash flow statement Statement of changes in equity
1. Basis for reporting
2. Profit (loss) for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Other notes
Working capital
175.7
mEUR
131.6
mEUR
2020 2021
Note 5 Working capital
Breakdown of working capital
EUR million 2021 2020
Inventories 220.1 149.3
Trade receivables 173.9 154.2
Other receivables 27.4 19.1
Income tax receivable 4.6 5.0
Other non-current liabilities -5.4 -1.3
Trade payables -135.9 -99.9
Other liabilities -101.5 -93.6
Income tax payable -7.5 -1.2
Working capital 175.7 131.6
Working capital ratio (LTM) 15.4% 18.8%
This note covers the
Nilsk Group’s working capital.
The working capital represents the assets and liabilities
necessary to support the day-to-day operations. Working
capital is dened as current assets less current and other
non-current liabilities, excluding interest-bearing items and
provisions, but including derivatives.
Composition and drivers
The Nilsk Group manufactures products and operates in
different markets. The Group’s operating model, with several
assembly locations and a number of distribution hubs for
nished products, leads to a relatively high level of inventory.
Key developments in 2021
The Nilsk Group working capital increased by 44.1 mEUR
from 131.6 mEUR at December 31, 2020 to 175.7 mEUR at
December 31, 2021. The increase in working capital was
primarily related to an increase in operating working capital and
inventory in particular.
Inventories increased from 149.3 mEUR at December 31, 2020
to 220.1 mEUR at December 31, 2021. This was driven by
substantially higher business activity and by a management
decision to ensure stock availability of critical components and
most used parts where possible.
Trade receivables amounted to 173.9 mEUR at December 31,
2021 and have increased by 19.7 mEUR since December 31,
2020. The increase in trade receivables was driven by higher
sales activity. Days sales outstanding was notably reduced
compared to 2020.
The working capital ratio measured in percentage of revenue on
a 12-month average was 15.4% at the end of 2021. This was a
decrease of 3.4 percentage points compared to 2020.
NILFISK ANNUAL REPORT 202181
Financial Statements
Consolidated financial statements Parent financial statements Management’s statement
Management Review
Independent auditor’s report
Notes to the consolidated financial statementsStatement of financial positionIncome statement and statement of comprehensive income Cash flow statement Statement of changes in equity
1. Basis for reporting
2. Profit (loss) for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Other notes
Inventories are measured at cost in accordance with
the FIFO method or at a weighted average. If the net
realizable value is lower than cost, inventories are
written down to this lower value.
Raw materials, consumables and goods for resale are
measured at cost, comprised of purchase price plus
delivery costs.
Finished goods and work in progress are measured
at cost, which includes the costs of raw materials,
consumables, direct wages/ salaries and production
overheads. Production overheads include indirect
materials and wages/salaries, as well as maintenance
and depreciation of production machinery, buildings
and equipment, along with costs for production
administration and management.
The net realizable value of inventories is calculated
as the sales amount less costs of completion and
costs incurred in effecting the sale, and is determined
taking into account marketability, obsolescence and
development in expected sales price.
Accounting policy
Allocation of production overheads, such as indirect
materials, wages/salaries and maintenance and
depreciation of production machinery, buildings
and equipment, along with costs for production
administration and management are based on relevant
assumptions related to capacity utilization, production
time and other relevant factors.
Key accounting judgments
Changes in assumptions may affect gross prot
margins as well as the valuation of the inventories.
The write-down in inventories is based on the expected
sales forecast and slow moving items.
Key accounting estimates
The Nilsk Group’s entities carry inventory to support their
operations. Inventory days increased from 127 to 144 by the
end of December 2021.
Specication of inventories
EUR million 2021 2020
Raw materials, consumables, and goods for
resale 73.9 39.5
Work in progress 0.4 1.2
Finished goods 145.8 108.6
Total 220.1 149.3
Write-down on inventories, January 1 11.0 9.2
Exchange rate adjustments 0.2 -0.3
Write-down on inventories for the year expensed
in the income statement 1.6 2.3
Reversal/disposal of write-downs -3.0 -0.2
Write-down on inventories, December 31 9.8 11.0
5.1 Inventories
NILFISK ANNUAL REPORT 202182
Financial Statements
Consolidated financial statements Parent financial statements Management’s statement
Management Review
Independent auditor’s report
Notes to the consolidated financial statementsStatement of financial positionIncome statement and statement of comprehensive income Cash flow statement Statement of changes in equity
1. Basis for reporting
2. Profit (loss) for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Other notes
Trade receivables increased in absolute terms from December
31, 2020, to December 31, 2021. The outstanding balances are
being monitored closely with a continuing focus on collecting
receivables. The days sales outstanding was 53.8 and
decreased compared to the same period last year (2020: 56.0).
Movements in allowance for expected credit losses
EUR million 2021 2020
Allowance, January 1 6.1 5.9
Exchange rate adjustments 0.2 -0.3
Allowance losses recognized 0.9 2.1
Reversal of allowance losses -1.0 -0.9
Realized allowance losses -0.2 -0.7
Allowance, December 31 6.0 6.1
Allowance for expected credit losses amounted to 6.0 mEUR
compared to 6.1 mEUR as of December 31, 2020. A total of 3.2
mEUR was attributable to individual impairments unchanged
from December 31, 2020.
The following table details the risk prole of trade receivables
based on the Group’s provision matrix. The Group’s historical
credit losses do not show different patterns for different
customer segments.
Specication of trade receivables
EUR million 2021 2020
Trade receivables, gross incl. VAT 179.9 160.3
Allowance for expected credit losses -6.0 -6.1
Total 173.9 154.2
Specication of expected credit losses
2021 2020
EUR million
Trade
receivables
Lifetime expected
credit losses
Expected
weighted average
credit loss rate
Trade
receivables
Lifetime expected
credit losses
Expected
weighted average
credit loss rate
Not past due 147.2 0.3 0.2% 129.8 0.4 0.3%
Overdue < 1 months 16.0 0.1 0.7% 14.0 0.1 0.9%
Overdue 1-2 months 4.9 0.2 3.0% 4.0 0.2 4.3%
Overdue 2-4 months 3.7 0.2 5.8% 3.8 0.4 10.2%
Overdue > 4 months 8.1 5.2 60.1% 8.7 5.0 64.3%
Total 179.9 6.0 160.3 6.1
Receivables are recognized initially at their transaction
price and subsequently measured at amortized cost,
which usually corresponds to the nominal value less
lifetime expected credit losses. The expected credit
losses on trade receivables are estimated using
a provision matrix with reference to past default
experience of the debtor and an analysis of the debtor’s
current nancial position, adjusted for general economic
conditions of the market in which the debtor operates.
The Group recognizes a loss allowance for expected
credit losses and writes off trade receivables when there
is information indicating that the debtor is in severe
nancial diculty and there is no realistic prospect of
recovery.
The amount of write-downs is recognized in the income
statement under other operating expenses. Subsequent
recoveries of amounts previously written down are
credited against other operating expenses.
Prepaid expenses are measured at cost.
The allowance for expected credit losses for trade
receivables is based on historical credit loss experience
combined with forward-looking information on
macroeconomic factors affecting the credit risk. The
expected loss rates are updated at every reporting date.
5.2 Trade receivables
Key accounting estimates Accounting policy
NILFISK ANNUAL REPORT 202183
Financial Statements
Consolidated financial statements Parent financial statements Management’s statement
Management Review
Independent auditor’s report
Notes to the consolidated financial statementsStatement of financial positionIncome statement and statement of comprehensive income Cash flow statement Statement of changes in equity
1. Basis for reporting
2. Profit (loss) for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Other notes
Note 6 Capital structure
This note covers the Nilsk Group’s
capital structure and nancial risks.
The Group’s objective is to have capital resources to meet
operating needs as well as capital for potential acquisitions. To
achieve and maintain an ecient capital structure, the Group’s
leverage target is to ensure that the net interest-bearing debt
should be between 1.5 – 2.0 x EBITDA before special items.
Total committed credit facilities available to Nilsk are 450
mEUR (2020: 550 mEUR), provided by Nordea Danmark, a
branch of Nordea Bank Abp, Finland and Danske Bank A/S.
The long-term committed loans includes a nancial covenant
with reference to the ratio between net interest-bearing debt
and EBITDA. The facilities are available for general funding
purposes.
Payables to credit institutions, etc. are recognized at the
amount of proceeds received at the date of borrowing,
net of transaction costs paid. In subsequent periods
the nancial liabilities are measured at amortized costs
using ‘the effective interest method’, the difference
between the proceeds and the nominal value therefore
being recognized in the income statement under
nancial expenses over the term of the loan.
The carrying amount of payables to credit institutions
and other payables corresponds in all material respects
to fair value and nominal value.
Specication of net interest-bearing debt 2021 2020
Non-cash changes Non-cash changes
EUR million January 1 Cash ows
Foreign
exchange
movement Leases December 31 January 1 Cash ows
Foreign
exchange
movement Leases December 31
Non-current interest-bearing loans and borrowings 227.3 69.1 -3.7 - 292.7 376.9 -153.5 3.9 - 227.3
Non-current lease liabilities 44.3 - -0.2 -8.8 35.3 32.2 - -0.7 12.8 44.3
Current interest-bearing loans and borrowings 105.2 -102.1 2.7 - 5.8 5.0 100.3 -0.1 - 105.2
Current lease liabilities 22.5 -24.4 -0.1 24.3 22.3 24.0 -26.4 -0.5 25.4 22.5
Interest-bearing liabilities 399.3 -57.4 -1.3 15.5 356.1 438.1 -79.6 2.6 38.2 399.3
Current interest-bearing receivables -3.0 1.0 1.4 - -0.6 -4.7 1.5 0.2 - -3.0
Interest-bearing receivables -3.0 1.0 1.4 - -0.6 -4.7 1.5 0.2 - -3.0
Net liabilities from nancing activities 396.3 -56.4 0.1 15.5 355.5 433.4 -78.1 2.8 38.2 396.3
Non-current interest-bearing receivables -1.2 -0.1 -0.7 - -2.0 - -1.3 0.1 - -1.2
Non-current interest-bearing receivables -1.2 -0.1 -0.7 - -2.0 - -1.3 0.1 - -1.2
Net liabilities from investing activities -1.2 -0.1 -0.7 - -2.0 - -1.3 0.1 - -1.2
Cash and cash equivalents 13.1 2.1 -0.2 - 15.0 19.3 -4.6 -1.6 - 13.1
Net interest-bearing debt 382.0 -58.6 -0.4 15.5 338.5 414.1 -74.8 4.5 38.2 382.0
Accounting policy
6.1 Net interest-bearing debt
Net interest-bearing debt at December 31, 2021 was
338.5 mEUR and hence decreased by 44.7 mEUR compared
to December 31, 2020.
As of December 31, 2021 the net interest-bearing debt primarily
consisted of short- and long-term credit facilities and cash and
cash equivalents. The interest-bearing debt was denominated
primarily in EUR.
NILFISK ANNUAL REPORT 202184
Financial Statements
Consolidated financial statements Parent financial statements Management’s statement
Management Review
Independent auditor’s report
Notes to the consolidated financial statementsStatement of financial positionIncome statement and statement of comprehensive income Cash flow statement Statement of changes in equity
1. Basis for reporting
2. Profit (loss) for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Other notes
Details of associated companies 2021 2020
M2H
CFM
Lombardia Thoro M2H
CFM
Lombardia Thoro
EUR million France Italy US France Italy US
Revenue 68.7 1.6 0.1 71.7 1.9 -
Prot (loss) after tax 6.4 - -4.4 4.2 - -3.6
Non-current assets 12.6 0.1 10.9 13.0 0.1 16.8
Current assets 62.7 1.2 - 60.2 1.0 -
Total assets 75.3 1.3 10.9 73.2 1.1 16.8
Equity 51.3 0.4 10.9 47.8 0.3 14.3
Non-current liabilities 15.1 0.2 - 15.3 0.1 -
Current liabilities 8.9 0.7 - 10.1 0.7 2.5
Equity and liabilities 75.3 1.3 10.9 73.2 1.1 16.8
Ownership in % 44% 33% 50% 44% 33% 50%
Share of prot after tax 2.8 - -2.2 1.9 - -1.8
Share of equity 22.5 0.1 5.5 21.1 0.1 7.2
Goodwill recognized 0.9 - - 0.9 - -
Carrying amount 23.4 0.1 5.5 22.0 0.1 7.2
Goods sold to associated companies 27.4 1.1 - 14.0 0.7 -
Goods purchased from associated companies - - 0.1 - - -
Goods purchased from associated companies 1.3 - - - - -
Receivables from associated companies 7.4 0.6 - 6.7 0.3 -
Associated companies include M2H, CFM Lombardia and
Thoro.
The primary activity of M2H is the sale of industrial equipment
and associated services to cleaning companies. Since 2000,
M2H has been the “Cleaning Division” of Nilsk in France.
The primary activity for CFM Lombardia is the design and sale
of industrial vacuum cleaners for dusts, solids, and liquids in
Italy. CFM Lombardia is a historical distributor for Nilsk Italy
and was created to promote Nilsk IVS products (and Outdoor
at the time) in the north of Italy.
Thoro is a joint venture with Carnegie Robotics LLC established
in 2020. The primary activity of Thoro LLC is the development
and sale of autonomous technology software and services.
Carrying amount of associated companies
EUR million 2021 2020
Carrying amount, January 1 29.3 21.5
Exchange rate adjustments 0.4 -0.6
Share of prot recognized
in the income statement 0.6 0.1
Contribution - 9.6
Dividends -1.3 -1.3
Carrying amount, December 31 29.0 29.3
An associated company is an entity in which the Nilsk
Group has signicant inuence, but not control, which
in general will be when holding 20% to 50% of the voting
rights. Such investments are accounted for using the
equity method of accounting. The investment is adjusted
by the Nilsk Group’s share of the results after tax of the
associated company. The Nilsk Group’s share of the results
is recognized in a separate line in the income statement.
The share of results will be recognized based on the
associated company’s full-year outlook, with adjustment for
the actual full-year result in the following year.
Accounting policy
6.2 Investments in associates
NILFISK ANNUAL REPORT 202185
Financial Statements
Consolidated financial statements Parent financial statements Management’s statement
Management Review
Independent auditor’s report
Notes to the consolidated financial statementsStatement of financial positionIncome statement and statement of comprehensive income Cash flow statement Statement of changes in equity
1. Basis for reporting
2. Profit (loss) for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Other notes
Risk management policy
The Nilsk Group is exposed to and manages different nancial
risks through its operations, investments, and nancing
activities. As a matter of policy, the Nilsk Group does not
actively speculate in nancial risks.
The overall objectives and policies for the Nilsk Group’s
nancial risk management are outlined in an internal Treasury
Policy, which is approved by the Board of Directors. The general
principle is that only nancial risk exceeding a dened risk
threshold is hedged. The risk thresholds are dened to provide
the Nilsk Group with sucient risk protection while taking
hedging costs into consideration.
The Nilsk Group uses nancial instruments to hedge expo-
sures relating to currency, interest rate and remuneration risks.
The nancial risks are divided into:
• Interest rate risks
• Remuneration risks
• Credit risks
• Liquidity risks
• Currency risks
6.3 Financial risks and nancial instruments
Interest rate risks
Interest rate risks refer to the inuence of changes in market
interest rates on future cash ows concerning the Nilsk
Group’s net interest-bearing debt.
Nilsk Group has entered into interest rate cap agreements and
is hedging 42% of gross debt at December 31, 2021 compared
to 35% in 2020.
Interest caps
Effective date Maturity date
Notional
value
(mEUR) Cap strike
Carrying
amount
(mEUR)
2021
June 30, 2021 June 30, 2023 150 0.50% p.a. -
June 30, 2023 June 30, 2025 150 0.00% p.a. 0.6
Total 0.6
2020
September 29,
2017 June 30, 2021 140 0.00% p.a. -0.1
June 30, 2021 June 30, 2023 150 0.50% p.a. -0.1
Total -0.2
Remuneration risks
Nilsk has an exposure on its share-based incentive schemes
(LTI programs) – cash-settled phantom share programs and
equity-settled performance share programs. The exposure is
the development in the price of the Nilsk share that impacts
the costs of the cash-settled scheme and liquidity required to
settle the equity-settled schemes by own shares.
To mitigate the risk, Nilsk has entered into a Total Return
Swap (TRS). For 2021, the interest expense amounted to 0.1
mEUR (2020: 0.0 mEUR). Nilsk is obligated to exercise all
shares within the TRS at the date of expiration. Dividends from
the shares are fully compensated to Nilsk.
It is estimated that a 1% rise in the market interest
rate for the Nilsk Group’s interest-bearing liabilities
at December 31, 2021 would impact pre-tax earnings
negatively on an annual basis by approximately 0.8
mEUR p.a. compared to 1.1 mEUR in 2020.
Sensitivity
Total Return Swap
Shares Maturity date
Strike
price
(DKK)
Notional
value
(mDKK)
Interest
rate
Carrying
amount
(mEUR)
2021
177,500 March 2, 2022 229.42 40.7 2.45% -0.4
Total -0.4
2020
124,896 March 4, 2021 125.80 15.7 2.35% 0.1
Total 0.1
NILFISK ANNUAL REPORT 202186
Financial Statements
Consolidated financial statements Parent financial statements Management’s statement
Management Review
Independent auditor’s report
Notes to the consolidated financial statementsStatement of financial positionIncome statement and statement of comprehensive income Cash flow statement Statement of changes in equity
1. Basis for reporting
2. Profit (loss) for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Other notes
6.3 Financial risks and nancial instruments – continued
Credit risks
The Nilsk Group’s credit risks relate partly to receivables and
cash at bank and in hand, and partly to derivative nancial
instruments with positive fair values. The maximum credit
risk attached to nancial assets corresponds to the values
recognized in the statement of nancial position.
The Nilsk Group has no material risks relating to a single
customer or partner. The Nilsk Group’s policy for acceptance
of credit risks entails ongoing credit rating of important
customers and other partners.
Insurance cover and similar measures to hedge receivables are
rarely applied as this is not deemed necessary.
Liquidity risks
It is the Nilsk Group’s policy to maintain adequate cash
resources for implementing planned operating activities and
to be able to operate effectively in the event of unforeseen
uctuations in liquidity. The Nilsk Group’s cash resources
consist of cash, cash equivalents and undrawn credit facilities.
The below items do not include interest. The forward contracts
are recognized at fair value and the discount element is
considered insignicant due to short maturity.
Payables to credit institutions are consequently recognized in
the statement of nancial position at the amounts stated in
the table below.
Maturity of the Nilsk Group’s liabilities
EUR million Within 1 year 1-2 years 2-3 years 3-4 years 4-5 years > 5 years Total
2021
Forward contracts 2.0 - - - - - 2.0
Interest-bearing loans and borrowings 5.8 0.1 287.3 0.3 0.4 4.6 298.5
Lease liabilities 22.3 14.8 10.8 6.3 2.5 0.9 57.6
Trade payables 135.9 - - - - - 135.9
Other nancial liabilities 99.5 4.8 0.6 - - - 104.9
Total 265.5 19.7 298.7 6.6 2.9 5.5 598.9
2020
Forward contracts 2.3 - - - - - 2.3
Other hedging instruments 0.1 - 0.1 - - - 0.2
Interest-bearing loans and borrowings 105.2 222.1 - 0.1 0.5 4.6 332.5
Lease liabilities 22.5 17.7 11.6 6.7 5.3 3.0 66.8
Trade payables 99.9 - - - - - 99.9
Other nancial liabilities 91.2 0.8 0.4 - - - 92.4
Total 321.2 240.6 12.1 6.8 5.8 7.6 594.1
NILFISK ANNUAL REPORT 202187
Financial Statements
Consolidated financial statements Parent financial statements Management’s statement
Management Review
Independent auditor’s report
Notes to the consolidated financial statementsStatement of financial positionIncome statement and statement of comprehensive income Cash flow statement Statement of changes in equity
1. Basis for reporting
2. Profit (loss) for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Other notes
Outstanding FX hedging contracts
2021 2020
EUR million
Notional
value¹
Recog -
nized
in OCI
Notional
value¹
Recog -
nized
in OCI
CNH/DKK
2
75.9 4.3 50.6 -0.6
GBP/DKK -18.2 -0.4 -18.1 -
NOK/DKK -7.2 -0.1 -2.9 -
SEK/DKK -4.7 - -8.8 -0.2
TRY/DKK -2.1 0.5 - -
USD/DKK - - -8.4 0.4
CAD/USD -13.3 0.2 -12.1 -0.5
Other - - -0.7 -
Total 30.4 4.5 -0.4 -0.9
1
Forward exchange contracts with positive notional values are purchases of the
relevant currency; negative notional values are sales.
2
The Chinese yuan traded offshore (CNH) is used as a proxy when hedging the CNY
currency exposure for the Group.
Currency risks
With sales to approximately 100 countries, the Nilsk Group is
exposed to currency risks that could have considerable impact
on the income statement and statement of nancial position.
Currency risks refer to the risks of losses (or opportunities
for gains) resulting from changes in currency rates. Currency
risks arise through transactions, nancial assets, and liabilities
denominated in currencies other than the functional currency
of the individual Group businesses.
Translation risks relating to net investments in subsidiaries
As a basic principle, the hedging of currency risks is not
performed for net assets (equity) in foreign subsidiaries.
Gains and losses relating to unhedged net assets in foreign
subsidiaries are accounted for directly in other comprehensive
income. Currency risks relating to other investments in foreign
entities are not deemed signicant.
6.3 Financial risks and nancial instruments – continued
Net nancing
Signicant currency risks relating to receivables and payables
that inuence the Nilsk Group’s net income are hedged.
Balances with credit institutions are denominated in the
functional currency of the businesses concerned.
Future cash ows
The Nilsk Group’s principal currency exposure relates to sales
and purchases in currencies other than the functional currency
of the individual Nilsk Group businesses. Hedging of these
currency risks is based on assessments of the likelihood of the
future transaction being performed and whether the associated
currency risk is signicant.
Expected cash ows with signicant currency risk are hedged
on a 14 month rolling basis. The fair value of the effective part
of the hedge is recognized in other comprehensive income on a
continuous basis.
The table to the right shows net outstanding forward exchange
hedging contracts at December 31, 2021 for the Nilsk
Group which are used for and fulll the conditions for hedge
accounting of future transactions. Forward exchange contracts
relate to hedging of product sales/purchase.
The table below shows the sensitivity of the Nilsk
Group’s equity, if the exchange rate decreased by
10% for the most signicant investments, excluding
EUR/DKK.
EUR million 2021 2020
USD -11.8 -9.8
CNY -4.0 -3.4
GBP -2.4 -2.0
Total -18.2 -15.2
Sensitivity
NILFISK ANNUAL REPORT 202188
Financial Statements
Consolidated financial statements Parent financial statements Management’s statement
Management Review
Independent auditor’s report
Notes to the consolidated financial statementsStatement of financial positionIncome statement and statement of comprehensive income Cash flow statement Statement of changes in equity
1. Basis for reporting
2. Profit (loss) for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Other notes
The following table details the foreign currency forward
contracts outstanding at the end of the reporting period,
as well as information regarding their related hedged items.
Foreign currency forward contract assets and liabilities
are presented in the line “Receivables/other liabilities” in
the statement of nancial position. During the year, no
ineffectiveness on hedge contracts has been recognized, and
the change in value used for the calculated ineffectiveness is
therefore equal to carrying amount.
6.3 Financial risks and nancial instruments – continued
Cash ow hedges 2021 2020
Average
exchange rate
Notional value:
Foreign currency
Notional value:
Local currency
Carrying amount of
cash ow hedges, net
Average
exchange rate
Notional value:
Foreign currency
Notional value:
Local currency
Carrying amount
of hedges, net
(tFCY) (tLCY) EUR thousand (tFCY) (tLCY) EUR thousand
Buy CNH
0-6 months 0.9799 CNH/DKK 338,930 CNH 332,127 DKK 3,130.4 0.9568 CNH/DKK 218,500 CNH 209,061 DKK -534.1
7-14 months 1.0048 CNH/DKK 209,041 CNH 210,045 DKK 1,124.2 0.9320 CNH/DKK 187,300 CNH 174,558 DKK -59.7
Sell GBP
0-6 months 8.6238 GBP/DKK -8,745 GBP -75,415 DKK -317.8 8.4317 GBP/DKK -9,750 GBP -82,209 DKK 106.2
7-14 months 8.7718 GBP/DKK -6,574 GBP -57,666 DKK -108.0 8.1653 GBP/DKK -6,600 GBP -53,891 DKK -153.6
Sell NOK
0-6 months 0.7270 NOK/DKK -41,287 NOK -30,017 DKK -110.9 0.7041 NOK/DKK -24,700 NOK -17,391 DKK -31.2
7-14 months 0.7442 NOK/DKK -30,909 NOK -23,002 DKK -15.8 0.7041 NOK/DKK -6,300 NOK -4,436 DKK -8.9
Sell SEK
0-6 months 0.7304 SEK/DKK -41,068 SEK -29,998 DKK 7.0 0.7250 SEK/DKK -51,300 SEK -37,192 DKK -127.9
7-14 months 0.7294 SEK/DKK -6,601 SEK -4,815 DKK 0.7 0.7258 SEK/DKK -36,900 SEK -26,780 DKK -100.0
Sell TRY
0-6 months 0.7239 TRY/DKK -17,300 TRY -12,524 DKK 390.5 - - - -
7-14 months 0.6480 TRY/DKK -13,400 TRY -8,683 DKK 143.8 - - - -
Sell USD
0-6 months - - - - 6.5128 USD/DKK -5,650 USD -36,797 DKK 292.0
7-14 months - - - - 6.3361 USD/DKK -4,700 USD -29,780 DKK 143.9
Sell CAD
0-6 months 0.7975 CAD/USD -10,595 CAD -8,449 USD 118.8 0.7482 CAD/USD -10,750 CAD -8,044 USD -315.2
7-14 months 0.7952 CAD/USD -8,734 CAD -6,945 USD 96.1 0.7692 CAD/USD -8,200 CAD -6,307 USD -101.0
Other - -23.2
Total 4,459.0 -912.7
NILFISK ANNUAL REPORT 202189
Financial Statements
Consolidated financial statements Parent financial statements Management’s statement
Management Review
Independent auditor’s report
Notes to the consolidated financial statementsStatement of financial positionIncome statement and statement of comprehensive income Cash flow statement Statement of changes in equity
1. Basis for reporting
2. Profit (loss) for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Other notes
6.3 Financial risks and nancial instruments – continued
The following table details the effectiveness of the hedging
relationships and value adjustments reclassied from hedging
reserve to the income statement:
Hedging reserve 2021 2020
EUR million Currency risk Interest rate risk
Remuneration
risk Total Currency risk Interest rate risk
Remuneration
risk Total
Hedging reserve, January 1 -0.8 -0.2 0.1 -0.9 -0.8 -0.4 0.8 -0.4
Value adjustment for the year 4.8 0.9 -0.1 5.6 - 0.2 - 0.2
Value adjustment reclassied to cost of sales 0.7 - - 0.7 - - - -
Value adjustment reclassied to nancial income and expenses - - - - - - -0.6 -0.6
Tax on value adjustment of hedging instruments -1.2 -0.2 - -1.4 - - -0.1 -0.1
Hedging reserve, December 31 3.5 0.5 - 4.0 -0.8 -0.2 0.1 -0.9
The sensitivity analysis demonstrates currency rate changes
equal to the individual currency’s historic volatility, with all
other variables held constant. The impact on the income
statement is due to changes in the fair value of monetary
assets and liabilities including fair value hedges. The impact
on other comprehensive income is due to changes in the fair
value of forward exchange contracts designated as cash ow
hedges. The Group’s exposure to foreign currency changes
for all other currencies is not material. The analysis shows
that for instance a 4% increase in the CNH/DKK rate will
impact other comprehensive income by 3.3 mEUR.
2021 2020
EUR million Historic volatility
Change
recognized in OCI
Change
recognized in P&L Historic volatility
Change
recognized in OCI
Change
recognized in P&L
CNH/DKK 4% 3.3 -0.6 6% 3.3 -0.1
GBP/DKK 6% -1.1 0.1 6% -1.1 -0.2
NOK/DKK 9% -0.7 - 9% 0.3 -
SEK/DKK 6% -0.3 0.1 8% -0.7 -0.1
TRY/DKK 40% -0.8 0.1 40% - -0.1
USD/DKK 5% - - 7% -0.6 -0.3
CAD/USD 7% -1.2 - 8% -1.0 -0.1
Sensitivity
NILFISK ANNUAL REPORT 202190
Financial Statements
Consolidated financial statements Parent financial statements Management’s statement
Management Review
Independent auditor’s report
Notes to the consolidated financial statementsStatement of financial positionIncome statement and statement of comprehensive income Cash flow statement Statement of changes in equity
1. Basis for reporting
2. Profit (loss) for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Other notes
Fair values
Financial instruments measured at fair value in the statement
of nancial position are designated as belonging to one of the
following three categories (the ‘fair value hierarchy’):
Level 1: Listed prices (unadjusted) in active markets for
identical assets and liabilities
Level 2: Input, other than listed prices on Level 1, which is
observable for the asset or liability either directly (as
prices) or indirectly (derived from prices)
Level 3: Input for the asset or liability which is not based on
observable market data (non-observable input)
Financial instruments measured at fair value consist of
derivative nancial instruments. The fair value of the Nilsk
Group’s forward transactions is measured in accordance with
Level 2 as the fair value is based on ocial exchange rates and
forward rates at the balance sheet date. The fair value of the
TRS is measured in accordance with Level 2 as the fair value
is based on inputs of which most are observable including
the share price of Nilsk. There are no nancial instruments
measured at Level 1 and 3.
6.3 Financial risks and nancial instruments – continued
Financial assets and liabilities by category
EUR million 2021 2020
Financial assets:
Trade receivables 173.9 154.2
Interest-bearing receivables 0.6 3.0
Other nancial receivables 19.4 17.6
Financial assets at amortized cost 193.9 174.8
Derivative nancial instruments 5.8 0.9
Fair value through other comprehensive income 5.8 0.9
Derivative nancial instruments 2.2 0.6
Fair value through prot and loss 2.2 0.6
Total 201.9 176.3
Financial liabilities:
Interest-bearing loans and borrowings 298.5 332.5
Trade payables 135.9 99.9
Lease liabilities 57.6 66.8
Other nancial liabilities 104.9 92.4
Financial liabilities at amortized cost 596.9 591.6
Derivative nancial instruments 0.7 1.9
Fair value through other comprehensive income 0.7 1.9
Derivative nancial instruments 1.3 0.6
Fair value through prot and loss 1.3 0.6
Total 598.9 594.1
Financial instruments, net 6.0 -1.0
NILFISK ANNUAL REPORT 202191
Financial Statements
Consolidated financial statements Parent financial statements Management’s statement
Management Review
Independent auditor’s report
Notes to the consolidated financial statementsStatement of financial positionIncome statement and statement of comprehensive income Cash flow statement Statement of changes in equity
1. Basis for reporting
2. Profit (loss) for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Other notes
Derivative nancial instruments
Derivative nancial instruments are recognized from the trade
date and measured in the statement of nancial position
at fair value. Positive and negative fair values of derivative
nancial instruments are included in other receivables and
liabilities, respectively. Fair values of derivative nancial
instruments are computed on the basis of current market
data and generally accepted valuation methods.
Fair value hedges
Changes in the effective portion of the fair value of derivative
nancial instruments designated and qualifying as a fair
value hedge of a recognized asset or a recognized liability are
recognized in the income statement together with changes in
the value of the hedged asset or hedged liability.
Apart from foreign currency hedging, hedge of future cash
ows according to a rm commitment is treated as a fair
value hedge.
The ineffective portion of the change in the fair value of
a derivative nancial instrument is presented under
nancial items.
Cash ow hedges
Changes in the effective portion of the fair value of derivative
nancial instruments designated and qualifying as hedges
of future cash ows are recognized in other comprehensive
income and accumulated in a separate hedging reserve under
equity until the hedged item inuences the income statement.
Gains or losses relating to such hedging transactions are
then transferred through other comprehensive income
and recognized in the income statement in the same item
as the hedged item. However, when the hedged forecast
transaction results in the recognition of a non-nancial asset
or a non-nancial liability, the gains and losses previously
recognized in other comprehensive income and accumulated
in equity are removed from equity and included in the initial
measurement of the cost of the non-nancial asset or
non-nancial liability. This transfer does not affect other
comprehensive income.
If the hedging instrument no longer meets the criteria for
hedge accounting, the hedging relationship is discontinued
prospectively. The accumulated reserve in equity remains
in equity if it is still probable that the hedged cash ows
will occur and is transferred through other comprehensive
income to the income statement when the hedged cash ows
inuence the income statement.
If the hedged cash ows are no longer expected to be
realized, the accumulated reserve in equity is immediately
transferred to the income statement.
The ineffective portion of the change in the fair value of a
derivative nancial instrument is recognized immediately in
the income statement and presented under nancial items.
LTI program hedges
Cash-settled program
Changes in the effective portion of the fair value of derivative
nancial instruments designated and qualifying as hedges
of the impact from development in the price of the Nilsk
share on cash-settled programs are recognized in other
comprehensive income and accumulated in a separate
hedging reserve under equity. The accumulated reserve in
equity is transferred through other comprehensive income
and recognized in the income statement under staff costs
when the expenses are recognized in the income statement.
The hedge of subsequent changes to recognized expenses
are accounted for as a fair value hedge.
If the hedging instrument no longer meets the criteria for
hedge accounting, the hedging relationship is discontinued
prospectively. The accumulated reserve in equity is
immediately transferred through other comprehensive
income to the income statement.
Equity-based programs
Hedge accounting cannot be applied on equity-based
programs as uctuations in the price of the Nilsk share do
not affect the income statement. Thus, changes in the fair
value of derivative nancial instruments hedging the liquidity
risk related to the settlement of equity-settled programs are
recognized in the income statement under nancial items.
Other derivative nancial instruments
Changes in the fair value of derivative nancial instruments
that do not qualify for hedge accounting are recognized under
nancial items as they arise.
6.3 Financial risks and nancial instruments – continued
Accounting policy
NILFISK ANNUAL REPORT 202192
Financial Statements
Consolidated financial statements Parent financial statements Management’s statement
Management Review
Independent auditor’s report
Notes to the consolidated financial statementsStatement of financial positionIncome statement and statement of comprehensive income Cash flow statement Statement of changes in equity
1. Basis for reporting
2. Profit (loss) for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Other notes
6.4 Share capital
The total number of shares is 27,126,369 with a nominal value
of 20 DKK each. The share capital is unchanged from 2020.
All shares have been fully paid up and no shares carry special
rights. Nilsk Holding A/S’ Articles of Association species
no limits in respect of ownership or voting rights, and the
Executive Management Board is unaware of any agreements
in this regard.
Earnings per share
Earnings per share of 1.88 EUR is based on prot attributable
to shareholders of Nilsk Holding A/S of 51.0 mEUR and an
average number of shares of 27,126,369.
EUR 2021 2020
Basic earnings per share 1.88 -0.10
Diluted earnings per share 1.88 -0.10
Dividends
At the Annual General Meeting to be held on March 25, 2022,
the Board of Directors will propose not to distribute dividends
for the nancial year of 2021 (2020: 0.0 mEUR).
Dividends are recognized as a liability at the date of
adoption at the Annual General Meeting (declaration
date). Proposed dividend payments for the year are
disclosed as a separate item under equity.
Interim dividends are recognized as a liability at the date
when the decision to pay such dividends are made.
Foreign exchange reserve
The foreign exchange reserve includes exchange rate
adjustments arising on translation of the nancial
statements of foreign entities with a currency that is
not the Group’s functional currency
Hedging reserve
Hedging reserve covers:
• cash ow hedging of interest payments
• hedging of currency risk of cash ows
• hedging of LTI program
Accounting policy
NILFISK ANNUAL REPORT 202193
Financial Statements
Consolidated financial statements Parent financial statements Management’s statement
Management Review
Independent auditor’s report
Notes to the consolidated financial statementsStatement of financial positionIncome statement and statement of comprehensive income Cash flow statement Statement of changes in equity
1. Basis for reporting
2. Profit (loss) for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Other notes
Note 7 Other notes
7.1 Fees to auditors elected at the
annual general meeting
EUR million 2021 2020
Deloitte:
Statutory audit 0.9 0.9
Other assurance service 0.3 0.2
Total 1.2 1.1
The fee for other assurance services provided to the Group by
Deloitte Statsautoriseret Revisionsselskab Denmark, amounted
to 0.1 mEUR in 2021 (2020: 0.2 mEUR).
This note contains other statutory notes
and notes considered less essential to
the understanding of the Nilsk Group’s
nancial development.
Contingent assets and liabilities
Disclosure concerning contingent assets and liabilities
and when they must be recognized takes place against
the background of evaluations of the expected outcome
of the individual issues. These evaluations are based on
legal opinions of the agreements contracted, which in
signicant issues also include opinions obtained from
external advisors, including lawyers.
Assets are recognized when it is virtually certain that
the issue will have a positive outcome for the company.
A liability is recognized when it is likely that, at the
balance sheet date, there will be an outow from the
Nilsk Group’s nancial resources and when the liability
can be reliably stated. If this is not the case, the matter
is disclosed in the notes to the nancial statements.
Decisions relating to such situations may in future
accounting periods lead to realized gains or losses that
may differ signicantly from the recognized amounts or
disclosures.
Accounting policy
7.2 Events after the balance sheet date
No events have occurred in the period from the balance sheet
date until the presentation of the nancial statements that
materially affect the assessment of the consolidated nancial
statements.
7.5 Contingent liabilities, securities,
and contractual obligations
EUR million 2021 2020
Guarantees to support local bank facilities 12.6 11.8
Rental guarantees 6.8 7.4
Other guarantees 4.3 3.3
Total issued guarantees 23.7 22.5
Nilsk Holding A/S is liable for obligations attributable to
the activities, assets, and liabilities of NKT A/S that existed
at the demerger September 11, 2017. The joint and several
liabilities of Nilsk Holding A/S and NKT A/S respectively
cannot exceed an amount corresponding to the net value of
the assets and liabilities. Nilsk Holding A/S has entered into
an indemnication agreement with NKT A/S, under which
each party has a dened right of recourse with respect to any
liabilities a party may incur in respect of the other party under
the joint and several liability.
The Nilsk Group is engaged in certain disputes, legal
proceedings, and inquiries from authorities, including tax
authorities, the outcome of which is not expected to materially
impact the Group’s nancial position.
7.3 Related parties
The Nilsk Group has had the following transactions and
balances with related parties:
EUR million 2021 2020
Goods sold to associated companies 28.5 14.7
Goods purchased from associated companies 0.1 -
Dividends received from associated companies 1.3 1.3
Receivables from associated companies 8.0 7.0
Please refer to Note 3.2 and Note 3.3 for remuneration to the
Executive Management Board and Note 6.2 for investments in
associates.
7.4 Other non-cash adjustments
EUR million 2021 2020
Change in provisions -5.3 7.3
Other non-cash items -0.7 0.2
Total -6.0 7.5
NILFISK ANNUAL REPORT 202194
Financial Statements
Consolidated financial statements Parent financial statements Management’s statement
Management Review
Independent auditor’s report
Notes to the consolidated financial statementsStatement of financial positionIncome statement and statement of comprehensive income Cash flow statement Statement of changes in equity
1. Basis for reporting
2. Profit (loss) for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Other notes
Denmark
Nilsk Holding A/S Denmark
Nilsk A/S Denmark
Nippon Investment Corporation ApS Denmark
Europe
Nilsk GmbH Austria
Nilsk N.V./S.A. Belgium
Nilsk s.r.o. Czech Rep.
Nilsk Oy Finland
Nilsk S.A.S. France
Nilsk-Advance Eppingen GmbH Germany
Nilsk GmbH Germany
Nilsk Hellas S.A. Greece
Nilsk Production Kft. Hungary
Nilsk Commercial Kft. Hungary
Nilsk Ltd Ireland
Nilsk S.p.A. Italy
Nilsk B.V. Netherlands
Nilsk AS Norway
Nilsk Polska Sp.z.o.o. Poland
Nilsk Lda Portugal
Nilsk-Advance S.R.L. Romania
Nilsk LLC Russia
Nilsk s.r.o. Slovakia
Nilsk S.A. Spain
Nilsk AB Sweden
Nilsk AG Switzerland
Nilsk Profesyonel Temizlik Ekipmanlari Ticaret. A.S. Turkey
Nilsk Ltd. United Kingdom
Floor Cleaning Machines United Kingdom
North and Central America
Nilsk Canada Company Canada
Nilsk de Mexico S. de R.L. de C.V. Mexico
Nilsk de Mexico Manufacturing S. de R.L. de C.V. Mexico
Nilsk U.S Holding Inc. US
Nilsk Inc. US
Nilsk Robotics, Inc. US
Hathaway North America Inc. US
Hydro Tek Systems, Inc. US
Nilsk Pressure-Pro, LLC. US
South America
Nilsk S.R.L. Argentina
Nilsk Equipamentos de Limpeza Ltda. Brazil
Nilsk S.A. Chile
Nilsk S.A.C. Peru
Asia/Pacic
Nilsk Pty. Ltd. Australia
Dongguan Viper Cleaning Equipment Co. Ltd. China
Nilsk Cleaning Equipment (Shanghai) Co. Ltd China
Nilsk Professional Cleaning Equipment (Suzhou) Co.
Ltd. China
Suzhou Nilsk Research and Development Co. Ltd. China
Nilsk Ltd. Hong Kong
Nilsk India Private Ltd. India
Nilsk Inc. Japan
Nilsk Korea Co. Ltd. Korea
Nilsk Sdn Bhd Malaysia
Nilsk Ltd. New Zealand
Nilsk Pte. Ltd. Singapore
Nilsk Ltd. (Branch) Taiwan
Nilsk Co. Ltd. Thailand
Nilsk Trading LLC (49%)¹ UAE
Nilsk Company Ltd. Vietnam
Nilsk Ltd. (Branch) Macau
Associates
M2H S.A. (44%) France
CFM Lombardia S.r.l. (33%) Italy
Thoro LLC (50%) US
Ownership below 100% is disclosed in brackets.
¹Majority of voting rights
7.6 Group companies
NILFISK ANNUAL REPORT 202195
Financial Statements
Consolidated financial statements Parent financial statements Management’s statement
Management Review
Independent auditor’s report
Notes to the consolidated financial statementsStatement of financial positionIncome statement and statement of comprehensive income Cash flow statement Statement of changes in equity
1. Basis for reporting
2. Profit (loss) for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Other notes
7.7 Denitions
Item Key gures and ratios Denition
1 Cash conversion Cash ow from operations before nancial items and income taxes as a percentage of EBITDA
2 Capital employed Non-current assets less interest-bearing receivables, provisions, pensions, and deferred tax liabilities and working capital specied in note 4.1
3 CAPEX Capital expenditure
4 Days sales outstanding Accounts receivables (excluding. VAT) minus bad debt provision divided with latest three months net sales accumulated up to twelve months and multiplied by 365
5 Diluted earnings per share Prot (loss) attributable to shareholders of Nilsk Holding A/S as a percentage of diluted average number of outstanding shares
6 EBITDA before special items Earnings (prot) before interest, tax, depreciation, amortization, impairment, and special items
7 EBITDA Earnings (prot) before interest, tax, depreciation, amortization, and impairment
8 EBITDA margin before special items EBITDA before special items as a percentage of revenue
9 EBITDA margin EBITDA as a percentage of revenue
10 EBIT before special items Earnings before interest, tax, and special items (operating prot before special items)
11 EBIT Earnings before interest and tax (operating prot)
12 EBIT margin before special items EBIT before special items as a percentage of revenue
13 EBIT margin EBIT as a percentage of revenue
14 Earnings per outstanding share (EPS) Prot (loss) attributable to shareholders of Nilsk Holding A/S relative to average number of outstanding shares
15 Equity value per outstanding share Equity attributable to shareholders of Nilsk Holding A/S per outstanding share at December 31
16 Financial gearing Net interest-bearing debt divided by EBITDA before special items
17 Free cash ow Cash ow from operating activities less cash ow from investing activities
18 Free cash ow excluding acquisitions and divestments Free cash ow plus cash ow from acquisition of businesses and less cash ow from divestment of businesses
19 Gross margin Gross prot as a percentage of revenue
20 Inventory days Gross inventory divided by latest three months cost of sales excluding amortizations and service department costs accumulated up to twelve months and multiplied by 365
21 Investment ratio Additions as a percentage of depreciations/amortizations
22 Net interest-bearing debt Current and non-current interest-bearing loans and borrowings less interest-bearing receivables and cash specied in Note 6.1
23 OCI Other comprehensive income
24 Organic growth Organic growth in local currency excluding acquisitions and divestments and foreign exchange rates
25 Overhead cost ratio Overhead costs as a percentage of revenue
26 R&D ratio Research and development spend as a percentage of revenue
27 Return on capital employed (RoCE) EBIT before special items as a percentage of average capital employed, calculated by taking the capital employed at December 31 and at the end of the preceding four quarters
28 Working capital Current assets minus current and non-current liabilities (excluding interest-bearing items and provisions) specied in note 5
29 Working capital ratio Average working capital LTM (latest twelve months) as a percentage of revenue
NILFISK ANNUAL REPORT 202196
Financial Statements
Consolidated financial statements Parent financial statements Management’s statement
Management Review
Independent auditor’s report
Notes to the consolidated financial statementsStatement of financial positionIncome statement and statement of comprehensive income Cash flow statement Statement of changes in equity
1. Basis for reporting
2. Profit (loss) for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Other notes
Alternative performance measures
The Group assesses its performance using a variety of
alternative performance measures which are not dened under
IFRS. A reconciliation from these alternative performance
measures to the nearest IFRS measure is presented below.
Organic growth
Organic growth is a measure that reects the underlying
performance of the Group. As such, this excludes the impact of
acquisitions or divestments and foreign exchange movements.
Below is a reconciliation from the movement in reported
revenue according to IFRS to organic growth.
2021 2020
Revenue growth (according to income statement) 19.5% -13.8%
Foreign exchange 1.2% 1.5%
Other - 0.8%
Organic growth 20.7% -11.5%
EBITDA and EBITDA before special items
In addition to measuring nancial performance of the Group
based on operating prot, EBITDA and adjusted EBITDA gures
are also used. We consider EBITDA to be a useful measure
because it approximates the underlying performance by
eliminating depreciations and amortizations.
EUR million 2021 2020
Operating prot (EBIT) 79.7 22.1
Amortization, depreciation, and impairment 60.2 68.5
EBITDA 139.9 90.6
Special items (excluding impairment) 4.4 9.9
EBITDA before special items 144.3 100.5
Overhead costs
Below is a breakdown of overhead costs, as presented in
the income statement. Overhead costs consist of operating
expenses, depreciations, amortizations, and impairment as well
as other operating income and expenses.
EUR million 2021 2020
Research and development costs -29.1 -31.7
Sales and distribution costs -227.6 -220.8
Administrative costs -63.8 -64.6
Other operating income 3.4 5.5
Other operating expenses -1.5 -2.2
Total overhead costs -318.6 -313.8
7.7 Denitions – continued
NILFISK ANNUAL REPORT 202197
Financial Statements
Consolidated financial statements Parent financial statements Management’s statement
Management Review
Independent auditor’s report
Notes to the consolidated financial statementsStatement of financial positionIncome statement and statement of comprehensive income Cash flow statement Statement of changes in equity
1. Basis for reporting
2. Profit (loss) for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Other notes
Parent company financial
statements 2021
1
2
3
4
5
6
7
8
9
10
11
Administrative costs 101
Fees to auditors elected at the annual general meeting 101
Financial items 101
Tax 101
Proposed distribution of loss for the year 101
Investments in subsidiaries 101
Prepayments 101
Related parties 102
Major shareholders 102
Contingent liabilities, securities, and contractual obligations 102
Events after the balance sheet date 102
Income statement 99
Balance sheet 99
Statement of changes in equity 100
Notes
Accounting policies 103
NILFISK ANNUAL REPORT 202198
Financial Statements
Consolidated financial statements Parent financial statements Management’s statement
Management Review
Independent auditor’s report
Notes to the parent financial statementsIncome statement Balance sheet Statement of changes in equity
Income statement
for the period January 1 to December 31
Balance sheet
as of December 31
EUR million Note 2021 2020
Other income
1 3.4 2.6
Administrative costs
1, 2 -9.0 -3.9
Operating loss -5.6 -1.3
Financial expenses
3 -1.1 -0.7
Loss before income taxes -6.7 -2.0
Income taxes
4 1.5 -1.2
Loss for the year -5.2 -3.2
To be distributed as follows:
Loss attributable to shareholders of Nilsk Holding A/S
5 -5.2 -3.2
Total -5.2 -3.2
EUR million Note 2021 2020
Assets
Investments in subsidiaries
6 216.5 216.4
Deferred tax
4 1.5 0.1
Total non-current assets
218.0 216.5
Prepayments
7 1.0 -
Income tax receivable 0.4 0.4
Receivables from Group companies
8 11.9 6.2
Total current assets
13.3 6.6
Total assets 231.3 223.1
Equity and liabilities
Share capital 72.9 72.9
Retained earnings 14.4 19.0
Total equity 87.3 91.9
Interest-bearing loans and borrowings 20.3 11.7
Loans from Group companies
8 117.3 117.3
Other liabilities 0.4 -
Total non-current liabilities 138.0 129.0
Trade payables and other liabilities 6.0 1.8
Income tax payable - 0.4
Total current liabilities 6.0 2.2
Total liabilities 144.0 131.2
Total equity and liabilities 231.3 223.1
NILFISK ANNUAL REPORT 202199
Financial Statements
Consolidated financial statements Parent financial statements Management’s statement
Management Review
Independent auditor’s report
Notes to the parent financial statementsIncome statement Balance sheet Statement of changes in equity
Statement of changes in equity
for the years ended at December 31
EUR million Share capital Retained earnings Total equity
2021
Equity, January 1 72.9 19.0 91.9
Loss for the year - -5.2 -5.2
Share option program - 0.6 0.6
Total changes in equity - -4.6 -4.6
Equity, December 31 72.9 14.4 87.3
2020
Equity, January 1 72.9 21.7 94.6
Exchange rate adjustments - 0.4 0.4
Loss for the year - -3.2 -3.2
Share option program - 0.1 0.1
Total changes in equity - -2.7 -2.7
Equity, December 31 72.9 19.0 91.9
The total number of shares is 27,126,369 with a nominal value of 20 DKK each. The share capital is unchanged
from 2020. All shares have been fully paid up and no shares carry special rights. Nilsk Holding A/S’ Articles of
Association species no limits in respect of ownership or voting rights, and the Executive Management Board
is unaware of any agreements in this regard.
See Note 3.2 to the consolidated nancial statements for a description of the share option program to the
Executive Management Board. Changes in equity in 2021 are comprised of loss for the year. No dividends are
proposed for 2021.
NILFISK ANNUAL REPORT 2021100
Financial Statements
Consolidated financial statements Parent financial statements Management’s statement
Management Review
Independent auditor’s report
Notes to the parent financial statementsIncome statement Balance sheet Statement of changes in equity
Note 1-7
Nilsk Holding A/S is the parent company of the Nilsk Group.
The parent company holds transactions related to holding of the
subsidiaries, please refer to the Management review.
1. Administrative costs
EUR million 2021 2020
Wages and salaries 6.6 2.4
Bonus 1.3 0.5
Long-term incentive programs 0.6 0.1
Total staff costs 8.5 3.0
Number of full-time employees, average 2 2
Number of full time employees, year-end 2 2
Remuneration to Board of Directors 0.6 0.6
Remuneration to the Executive Management Board 2.4 2.4
Remuneration to former members
of the Executive Management Board 5.5 -
Other administrative costs 0.5 0.9
Total administrative costs 9.0 3.9
The Executive Management Board are granted short-term bonus
agreements contingent upon the fulllment of the prerequisites, goals
and conditions dened in a bonus agreement and long-term incentive
programs. See Note 3.2 and Note 3.3 of the consolidated nancial
statements. Management fee of 3.4 mEUR (2020: 2.6 mEUR) was
received by Nilsk Holding A/S and recognized in the income statement
as other income.
2. Fees to auditors elected
at the annual general meeting
EUR million 2021 2020
Deloitte:
Statutory audit 0.1 0.1
Total 0.1 0.1
3. Financial items
EUR million 2021 2020
Foreign exchange gains - 0.4
Interest to Group companies -1.1 -1.1
Total -1.1 -0.7
4. Tax
Tax recognized in the income statement
EUR million 2021 2020
Deferred tax -1.5 1.2
Total -1.5 1.2
Reported tax rate 22.0% -64.1%
Reconciliation of tax:
Calculated tax of 22.0% (2020: 22.0%)
on loss before income taxes -1.5 -0.4
Tax effect of:
Non-taxable income/non-deductible expenses - 0.1
Tax assets valuation allowances - 1.5
Total -1.5 1.2
Deferred tax assets
EUR million 2021 2020
Deferred tax assets, January 1 0.1 1.4
Exchange rate adjustments -0.1 -0.1
Deferred tax recognized in the income statement 1.5 -1.2
Deferred tax assets, December 31 1.5 0.1
5. Proposed distribution of loss for the year
EUR million 2021 2020
Suggested distribution of loss for the year:
Loss attributable to shareholders of Nilsk Holding A/S -5.2 -3.2
Total -5.2 -3.2
6. Investments in subsidiaries
EUR million 2021 2020
Carrying amount, January 1 216.4 215.5
Exchange rate adjustments 0.1 0.9
Carrying amount, December 31 216.5 216.4
7. Prepayments
EUR million 2021 2020
Prepayments 1.0 -
Total 1.0 -
NILFISK ANNUAL REPORT 2021101
Financial Statements
Consolidated financial statements Parent financial statements Management’s statement
Management Review
Independent auditor’s report
Notes to the parent financial statementsIncome statement Balance sheet Statement of changes in equity
8. Related parties
Transactions with aliated undertakings comprise the following:
EUR million 2021 2020
Non-current interest-bearing loan from Nilsk A/S 117.3 117.3
Receivables from Group companies 11.9 6.2
Management fee of 3.4 mEUR is included in the 11.9 mEUR as a net
receivable (2020: 2.6 mEUR).
Other matters of interest in relation to related parties are disclosed in the
notes to the consolidated nancial statements.
9. Major shareholders
The following shareholders holds an excess of 5% of the share capital:
EUR million
Number
of shares
Share
capital
KIRKBI INVEST A/S, Billund Denmark 5,493,200 20.3%
Ferd AS, Oslo, Norway 5,409,277 19.9%
PrimeStone Capital LLP, London, United Kingdom 4,614,817 17.0%
10. Contingent liabilities, securities,
and contractual obligations
EUR million 2021 2020
Rental guarantees 6.7 7.4
Nilsk Holding A/S has issued rental guarantees relating to rental
contracts in subsidiaries.
Nilsk Holding A/S and all its Danish subsidiaries are subject to
mandatory joint taxation. As the ultimate parent company in the Nilsk
Group, Nilsk Holding A/S acts as the administration company of the
joint taxation scheme and consequently settles all payments of tax with
the tax authorities. Joint taxation contributions to/from subsidiaries are
Note 8-11
recognized under income tax related to net prot. Tax payable and tax
receivable are stated under current assets/liabilities.
Nilsk Holding A/S is liable for obligations attributable to the activities,
assets, and liabilities of NKT A/S that existed at the demerger
September 11, 2017. The joint and several liabilities of Nilsk Holding
A/S and NKT A/S respectively cannot exceed an amount corresponding
to the net value of the assets and liabilities. Nilsk Holding A/S has
entered into an indemnication agreement with NKT A/S, under which
each party has a dened right of recourse with respect to any liabilities a
party may incur in respect of the other party under the joint and several
liability.
11. Events after the balance sheet date
No events have occurred in the period from the balance sheet date until
the presentation of the nancial statements that materially affect the
assessment of the nancial statements of Nilsk Holding A/S.
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Management Review
Independent auditor’s report
Notes to the parent financial statementsIncome statement Balance sheet Statement of changes in equity
Accounting policies
The nancial statements for the parent company are included in
this Annual Report in pursuance of the requirements of the Danish
Financial Statements Act.
The nancial statements for the parent company are prepared in
accordance with the Danish Financial Statements Act for accounting
class D companies.
The nancial statement for the parent company covers the period
from January 1 to December 31
The Annual Report is presented in EUR million rounded with one
decimal. The presentation currency is EUR as the Nilsk Group’s
main business activities are EUR denominated
Description of accounting policies
In relation to the accounting policies described for the nancial
statements of the Nilsk Group (see Note 1.1 to the consolidated
nancial statements), the accounting policies of the parent company
differ in the following:
Income from investments in subsidiaries
Dividends from investments in subsidiaries companies are
recognized in the income statement of the parent company in the
year the dividends are declared.
Investments in subsidiaries
Investments in subsidiaries are measured at cost. If there is
indication of impairment, impairment testing is carried out. Where
the carrying amount exceeds the recoverable amount it is written
down to the recoverable amount.
Tax
Nilsk Holding A/S and all its Danish subsidiaries are subject
to mandatory joint taxation. As the ultimate parent company in
the Nilsk Group, Nilsk Holding A/S acts as the administration
company of the joint taxation scheme and consequently settles all
payments of tax with the tax authorities. Joint taxation contributions
to/from subsidiaries are recognized under income tax related to
net prot. Tax payable and tax receivable are stated under current
assets/ liabilities. Companies that use tax losses in other companies
pay joint taxation contributions to the parent company equivalent to
the tax base of the tax losses utilized. Companies whose tax losses
are used by other companies receive joint taxation contributions
from the parent company equivalent to the tax base of the tax losses
utilized (full absorption).
Cash ow statement
The parent company has in accordance with the Danish Financial
Statements Act, Section 86 (4) not prepared separate cash ow
statements. Please refer to the consolidated cash ow statements.
For the following notes, see information in the consolidated nancial
statements:
• Remuneration – see Note 3 Remuneration
• Share capital – see Note 6.4 Share Capital
Accounting policy
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Consolidated financial statements Parent financial statements Management’s statement
Management Review
Independent auditor’s report
Notes to the parent financial statementsIncome statement Balance sheet Statement of changes in equity
Management’s statement
Executive Management Board
Board of Directors
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Consolidated financial statements Parent financial statements Management’s statement
Management Review
Independent auditor’s report
Independent auditor’s report
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Financial Statements
Consolidated financial statements Parent financial statements Management’s statement
Management Review
Independent auditor’s report
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Consolidated financial statements Parent financial statements Management’s statement
Management Review
Independent auditor’s report
Business Registration No 33 96 35 56
Identication No mne21358
Identication No mne34490
NILFISK ANNUAL REPORT 202160
Financial Statements
Consolidated financial statements Parent financial statements Management’s statement
Management Review
Independent auditor’s report
Nilsk’s Annual Report 2021 was published on February 25, 2022.
The report is also available at www .nilsk.com.
Company reg. No. 38 99 88 70
Investor Relations contact IR@nilsk.com