ANNUAL REPORT 2022
Towards long-term
sustainable growth
9%
56%
35%
Countries
Our products and services
are sold in more than 100
countries.
Sales companies
We have sales companies in
more than 40 countries.
EBITDA margin before special items
Manufacturing sites
Asset-light assembly-
focused production. Main
manufacturing facilities are
located in the US, Mexico,
Hungary, Italy, and China.
R&D sites
Product development for
most products is managed
from three competence
centers, one in each region.
Distribution centers
Our distribution centers are
located in Americas, Europe
and Asia. We also provide
direct shipment from selected
manufacturing sites.
presence
Share of revenue 2022 Share of revenue 2022 Share of revenue 2022
Revenue Geographies Key markets
Branded professional
Consumer
Private label and other
Europe region
Americas region
APAC & MEA region
Employees, FTEs
30%
5%
4%
USA
10%
Germany
11%
France
United
Kingdom
Denmark
approximately
mEUR
Total revenue in 2022
We are a
leading global
provider of
professional
cleaning
equipment
and services
7%
5%
88%
EBITDA margin before special items was in line with
the revised outlook announced on October 26, 2022
AT A GLANCE
NILFISK ANNUAL REPORT 20222
Financial StatementsManagement Review
37% 20% 13% 30%
AT A GLANCE
of respondents report an increase in
the expected standard of cleaning
compared with before 2020.
of respondents expect this change
to be long-term.
Over
Nearly
In a new study Nilfisk asked 400 decision
makers representing key customer segments
how COVID-19 has impacted their cleaning
habits. The study showed an increased
perception of the value of clean combined
with changed cleaning behaviors. Almost all
of the organizations expecting this change to
be long-lasting.
A wide range of solutions
With a product portfolio spanning from professional
floorcare equipment to advanced industrial vacuum
solutions to high-pressure washers, Nilfisk has the
widest breadth of product solutions in the industry.
We have an unparalleled capacity to provide
comprehensive product and service solutions to our
customers.
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.
Revenue
by products and services
The industries we serve
Increased
focus on
cleaning
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 cleaners for
domestic use.
Professional mobile
pressure washers
that use hot/cold
water, stationary
pressure washers,
petrol/diesel driven
pressure washers,
high-pressure washers
for domestic use.
Service, parts and accessories.
Automotive HealthcareEducationAgriculture
Manufacturing
Contract cleaners
Pharma Warehousing &
Logistics
Offices & Public
buildings
Iron & Metal
Building &
Construction
Retail Hospitality
Food & Beverage
NILFISK ANNUAL REPORT 20223
Financial StatementsManagement Review
Management
Review
Financial
Statements
At a glance
2022 in brief
Letter from the Chair and the CEO
Financial highlights 2022
5-year consolidated financial highlights
Sustainability highlights
Our strategy
Year one of Business Plan 2026
Nilfisk value proposition
Business Plan 2026
Growth platforms
Strategic priorities
Optimization opportunities
Ways of Working
Outlook for 2023
Financial targets for 2026
Capital allocation principles towards 2026
Sustainability progress in 2022
Sustainability targets towards 2030
Our business
Our customers
Solutions
Channels
Operations
Structural changes in cleaning-trends
Our results
Business performance
Europe
Americas
APAC
Consumer
Private label and other
Financial review
Performance in Q4 2022
Quarterly financial highlights
ESG Performance
Our governance
Corporate governance
Board of Directors
Nilfisk Leadership Team
Risk management
Shareholder information
Consolidated financial statements
Income statement
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
2
5
5
7
8
9
10
11
11
12
13
13
16
19
20
20
21
21
21
22
23
24
25
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28
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41
42
46
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50
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53
55
55
56
57
58
59
108
114
115
Page 9
EcoVadis Gold Medal confirmed our sustainability
effort is on track towards delivering on targets.
Page 13
The growth platforms in Business Plan 2026
delivered progress already in 2022.
Page 27
A tornado destroyed Nilfisk’s only distribution
center in the US, but a dedicated employee
effort mitigated the repercussions.
NILFISK ANNUAL REPORT 20224
Financial StatementsManagement Review
Our Business Plan 2026
has served us well in
2022, helping us to
weather the challenges
the year brought
We entered 2022 with strong sales growth
momentum that continued from our record year
2021. Additionally, in early 2022 we launched
our new strategy, our 5-year Business Plan 2026
focused on value creation and long-term sustainable
growth. To achieve this, we have anchored Nilfisk
in a distinct customer-value proposition. We
have started building growth platforms focused
on carefully-selected strategic priorities and
optimization opportunities. And fundamentally, we
have implemented new Ways of Working as a key
enabler for successful strategy execution.
As a result, we achieved revenue of 1,069.5 mEUR,
an increase of 7.5% from 2021 and equivalent to
organic revenue growth of 4.9%. The growth was
driven by our Branded Professional business, which
grew 8.6% organically with all regions contributing.
As in 2021, the strongest growth was achieved in
our Americas region, which grew 12.5%. On the
other hand, our Consumer business declined by
15.5% and our Private Label business declined by
15.7%, in line with market developments. EBITDA
before special items reached 140.8 mEUR, just
around 2% below the record in 2021, representing an
EBITDA margin before special items of 13.2%.
Business Plan as a guiding principle
Our Business Plan 2026 has served us well in
2022, helping us to weather the challenges the year
brought. The invasion of Ukraine by Russia fueled
not only a humanitarian catastrophe but also had
severe economic implications. In early March 2022,
we decided to cease business in Russia, which
represented around 1% of our 2021 revenue. The
war also contributed to accelerating cost inflation,
which central banks countered by raising interest
Resilient strategy execution
fostering revenue growth in 2022
NILFISK ANNUAL REPORT 20225
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5-year consolidated financial highlights Sustainability highlightsFinancial highlightsLetter from the Chair and the CEO
way towards our ambition to lead the professional
cleaning industry with sustainable products.
New Ways-of-Working enabling Business Plan
2026 off to a strong start
We have been impressed again with our people in
Nilfisk in 2022. Teams came together around the
initiatives of Business Plan 2026. As part of our new
Ways of Working multiple training sessions were
held in the methodology of the Nilfisk Operating
System (NOS). Organizationally, we empowered
our people by allocating more decision-making
authority closer to markets and business units, in
order to promote agility and customer-focus. All
of this was instrumental to enable our results in
2022. Our people gave an impressive demonstration
Our sustainability
commitment is an
integral part of our
Nilfisk value proposition
and core to our strategy.
In 2022, we continued
pushing the boundaries
of our industry when it
comes to sustainability.
rates. Consequently, the overall geo-political and
economic climate deteriorated over the course of
the year.
A significant internal challenge in 2022 was caused
by a tornado wiping out our US distribution center
end-March 2022. Fortunately, no employees were
injured. This disruptive incident caused shipment
delays to our customers, non-availability of parts
for months, as well as temporarily higher costs
while resuming operations in a new distribution
center. Even by year-end, process stability and
efficiency were not yet fully restored. Nevertheless,
we achieved 10% organic revenue growth in the US,
which puts us well on the way in terms of delivering
on our strategic priority to grow in the large-scale
US market as outlined in Business Plan 2026. A
great result made possible by the cross-functional
collaboration and determination of our people.
2022 marked a rapidly increasing level of cost
inflation unprecedented in the last 30 years.
Next to cost inflation across most material
categories, concerns about energy supply led to
substantially higher energy costs. We countered
those inflationary pressures with disciplined
pricing actions. Our pricing practice and diligent
implementation contributed increasingly to preserve
margins over the course of the year. At the same
time, global supply chain challenges and availability
of critical parts continued to constrain our growth.
As set out in our Business Plan 2026, we invested
into enhancing supply chain robustness. Short term
this led to higher levels of inventory. Longer term
this is building towards reliable, cost optimized
supply supporting our long-term sustainable growth
targets.
A core element of our strategy is to develop Service-
as-a-business. We made good progress in building
a dedicated service organization who will be driving
this initiative. This is allowing us to gain traction
in the implementation of a new business model
substantially contributing to future value creation.
New Chair leading Board of Directors
On 25 March 2022, Peter Nilsson was elected as
new Chair of the Board of Directors of Nilfisk. Peter
brings a wealth of relevant business experience
into the board. As CEO, Board Member or Board
Chair, Peter was involved in numerous successful
implementations of value creation strategies. Under
his leadership, the Board of Directors have been
working closely with the Nilfisk Leadership Team
to ensure the successful execution of Business
Plan 2026 throughout 2022. The progress in the
implementation of the strategy is visible in the
resilient execution of its key initiatives enabling to
achieve another year of organic revenue growth
while overcoming the challenges.
Milestone towards our Sustainability commitment:
EcoVadis Gold achieved in 2022
Our sustainability commitment is an integral part
of our Nilfisk value proposition and core to our
strategy. Our customers are looking more and
more for a reliable partner supporting them in their
own sustainability targets. In 2022, we continued
pushing the boundaries of our industry when it
comes to sustainability. We were awarded a Gold
Medal by EcoVadis, the world’s largest provider of
business sustainability ratings. This makes Nilfisk
part of the top 5% companies globally rated by
EcoVadis. This achievement is a firm step on the
of a growth mindset. Our employee survey also
demonstrated the dedication of our people when we
by the end of the year got an overall engagement
score of 8.1, which is significantly above benchmark
for our industry. We would like to thank all our
employees for their great work in 2022 and for their
exceptional commitment to serve our customers.
We would also like to thank our customers for
their continued loyalty and belief in Nilfisk. We are
committed to overcome the ongoing global supply
chain challenges, and we feel encouraged by your
feedback in the customer value creation potential of
our lifecyle services solution approach.
Finally, we would like to extend a thank you to our
shareholders for their continued support. We highly
appreciated any feedback during 2022. Your support
of Business Plan 2026 unlocks its significant value
creation potential enabling long-term sustainable
growth.
On behalf of Nilfisk
Peter Nilsson
Chair
Torsten Türling
CEO
NILFISK ANNUAL REPORT 20226
Our governance
Financial StatementsManagement Review Our resultsOur businessOur strategy2022 in brief
5-year consolidated financial highlights Sustainability highlightsFinancial highlightsLetter from the Chair and the CEO
Organic revenue
growth and EBITDA
margin before special
items were in line with
the revised outlook
announced on
October 26, 2022.
13.2% 54.5 mEUR
12.1%
2020
-2.6 mEUR
2020
832.9
mEUR
2020
100.5
mEUR
73.5 mEUR
2020
382.0 mEUR
2020
14.5%
2021
51.0 mEUR
2021
994.9
mEUR
2021
144.3
mEUR
58.5 mEUR
2021
338.5 mEUR
2021
13.2%
2022
40.6 mEUR
2022
1,069.5
mEUR
2022
140.8
mEUR
54.5 mEUR
2022
324.7 mEUR
2022
40.6 mEUR
1,069.5 mEUR 140.8 mEUR
4.9%
324.7
mEUR
EBITDA margin
before special items (bsi)
The EBITDA margin before special items came to
13.2%. The combined impact from lower gross
margin and an unchanged overhead cost ratio had
a negative impact on the EBITDA margin before
special items of 1.3 percentage points compared to
2021, where Nilfisk reported an all-time high EBITDA
bsi.
Free cash flow
Free cash flow amounted to 54.5 mEUR. Operating
cash flow grew during 2022, but increased
investments into the US Distribution Center rebuild
and strategic R&D investments consumed an
additional 9 mEUR in cash compared to 2021. In
addition, Nilfisk acquired an additional 5% share
position in M2H S.A., increasing ownership to 49%.
Cash flow benefitted from changes in working
capital, which was positively impacted by the
non-recourse factoring program initiated in autumn
2022.
Profit for the year
Profit for the year amounted to 40.6 mEUR
compared to 51.0 mEUR in 2021. A lower operating
profit in combination with higher special items and
higher financial costs drove the decline.
Revenue
Total revenue grew 7.5%, driven by continued
demand for our branded professional products
and services across regions as well as determined
pricing actions.
Organic revenue growth
Organic growth (OG) for the total business
was 4.9%, driven by OG of 8.6% within branded
professional across all regions. Consumer and
Private label declined in line with their respective
markets, negatively impacting overall OG.
EBITDA before special items (bsi)
EBITDA bsi came to 140.8 mEUR, a decline of
3.5 mEUR. The solid performance of branded
professional and determined pricing actions during
2022 helped deliver the second best year in Nilfisk
history as a listed company. The lower gross margin,
driven by higher freight rates and raw material
costs as well as lower capacity utilization, adversely
impacted EBITDA bsi. The overhead cost ratio was
unchanged, despite a high inflation environment.
Net interest-bearing debt (NIBD)
The improvement was the result of the solid
operating profit and the non-recourse factoring
program, partly offset by increased working capital.
The gearing remained unchanged at 2.3x.
2022
25
20
15
10
5
0
-5
-10
-15
20212020
4.9%
20.7%
-11.5%
202220212020
Financial
highlights
2022
NILFISK ANNUAL REPORT 20227
Our governance
Financial StatementsManagement Review Our resultsOur businessOur strategy2022 in brief
5-year consolidated financial highlights Sustainability highlightsLetter from the Chair and the CEO Financial highlights
5-year
consolidated
financial
highlights
EUR million 2022 2021 2020 2019 2018
1
Income statement
Revenue
1,069.5 994.9 832.9 966.5 1,054.3
EBITDA before special items³
140.8 144.3 100.5 117.7 125.5
EBITDA³
133.3 139.9 90.6 95.0 69.8
Operating profit before special items³
79.5 84.1 32.9 49.8 87.4
Operating profit³
69.6 79.7 22.1 25.9 18.9
Special items, net
-9.9 -4.4 -10.8 -23.9 -68.5
Financial items, net
-17.0 -11.6 -14.7 -14.0 -11.3
Profit (loss) for the year
40.6 51.0 -2.6 8.7 10.0
Cash flow
Cash flow from operating activities
82.0 74.7 89.5 76.1 33.1
Cash flow from investing activities
-27.5 -16.2 -16.0 -40.8 -38.6
— hereof investments in property, plant and equipment
-10.5 -5.8 -5.4 -10.4 -18.6
— hereof investments in intangible assets
-15.9 -11.7 -11.6 -33.0 -33.8
Free cash flow excluding acquisitions and divestments
54.5 58.5 73.5 35.3 -8.6
Statement of financial position
Total assets
863.4 841.2 763.5 840.1 794.4
Group equity
260.7 207.7 134.8 158.0 147.5
Working capital
202.1 175.7 131.6 157.9 170.4
Net interest-bearing debt
324.7 338.5 382.0 414.1 369.6
Capital employed
585.4 546.2 516.8 572.1 516.8
Financial ratios and employees
Organic growth 4.9% 20.7% -11.5% -4.1% 2.0%
Organic growth Nilfisk branded professional business²
8.6% 20.1% -13.7% -2.6% 2.8%
Gross margin³
39.5% 40.5% 41.6% 42.1% 42.0%
EBITDA margin before special items³
13.2% 14.5% 12.1% 12.2% 11.9%
EBITDA margin³
12.5% 14.1% 10.9% 9.8% 6.6%
Operating profit margin before special items³
7.4% 8.5% 4.0% 5.2% 8.3%
Operating profit margin³
6.5% 8.0% 2.7% 2.7% 1.8%
Financial gearing³
2.3 2.3 3.8 3.5 2.9
Overhead costs ratio³
32.0% 32.0% 37.7% 37.0% 33.1%
CAPEX ratio
2.5% 1.8% 2.0% 4.5% 5.0%
Working capital ratio³
21.6% 15.4% 18.8% 20.6% 18.5%
Return on Capital Employed (RoCE)³
13.4% 15.8% 5.9% 8.5% 16.7%
Basic earnings per share (EUR)
1.50 1.88 -0.10 0.32 0.37
Diluted earnings per share (EUR)
1.50 1.88 -0.10 0.32 0.37
Number of full-time equivalents, end of period
4,655 4,887 4,339 4,886 5,482
1
Comparative figures are not 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 2018 have not been calculated.
3
In 2020, amortization/impairment of acquisition-related intangibles
is no longer presented in a separate line in the income statement. In
addition share of profit from associates is presented in a separate
line under operating profit in the income statement. 2019 key figures
have been restated, however the related key figures from 2018
have not been calculated.
Please find definitions in note 8.6
NILFISK ANNUAL REPORT 20228
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Sustainability highlightsFinancial highlightsLetter from the Chair and the CEO 5-year consolidated financial highlights
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
Sustainability highlights
Scope 1, 2 and 3
Nilfisk 2030 Science Based Targets for scope 1, 2
and 3 have been verified and approved by SBTi. In
2022, Nilfisk made solid progress towards these
targets.
Absolute scope 1 and 2 greenhouse gas emissions
Reduction in 2022 of 10% compared to the base
year 2019. Target reduction of 35% by 2030 from
2019.
Scope 3 greenhouse gas emission intensity
Reduction in 2022 of 11% compared to the base
year 2021. Target reduction of 48% per gross profit
unit by 2030 from the use of sold products, from
2021.
Diversity and inclusion
Nilfisk is committed to achieving equal
representation in senior management. Therefore, we
have set a gender diversity milestone target of 25%
women in senior management in 2026.
In base year 2021, Nilfisk had 14% women in senior
management.
In 2022, Nilfisk achieved an increase to
19% women in senior management.
Upholds strong CDP score
Nilfisk in CDP’s leadership category for the 3rd
consecutive year.
Nilfisk received a 2022 A- score from CDP, an
international nonprofit organization, reflecting
how Nilfisk upholds high standards in climate and
environmental actions and continues to implement
best practices.
Sustainability Report 2022
Nilfisk published a separate Sustainability Report
2022, which contains our Statutory Statement for
Corporate Social Responsibility per section 99a, 99b,
99d, and 107d of the Danish Financial Statements
Acts. The Sustainability Report 2022 also contains
Nilfisk’s report in accordance with Regulation (EU)
2020/852 (Taxonomy), Delegated Regulation.
Nilfisk has industry-leading ambitions for
sustainability and in 2022 our efforts were awarded
with the EcoVadis Gold Medal. This means Nilfisk
is among the top 5 % of global companies rated by
EcoVadis and in top 4 % of our industry.
Gold Medal
EcoVadis 2022
93rd percentile
(EU) 2021/2139 on climate change mitigation
and climate change adaptation, and Delegated
Regulation (EU) 2021/2178 on the presentation
of this information. The report can be found at:
NILFISK ANNUAL REPORT 20229
Our governance
Financial StatementsManagement Review Our resultsOur businessOur strategy2022 in brief
5-year consolidated financial highlightsFinancial highlightsLetter from the Chair and the CEO Sustainability highlights
Financial StatementsManagement Review
NILFISK ANNUAL REPORT 202210
Our governanceOur resultsOur business2022 in brief Our strategy
Our strategy
At the beginning of 2022, Nilfisk launched
the growth-focused Business Plan 2026.
The plan has clear priorities underpinned
by a detailed implementation plan that
will allow us to achieve our financial
targets by 2026. The goal is to position
Nilfisk for long-term sustainable growth.
Year one of Business
Plan 2026
At the beginning of 2022, Nilfisk launched Business
Plan 2026. That makes 2022 year one of building
platforms for long-term sustainable growth.
The strategic framework of Business Plan 2026
has been turned into a roadmap for delivering on
our long-term growth targets. The starting point is
Nilfisk’s distinct customer-value proposition.
Our focus is on building and developing growth
platforms focusing on three carefully-selected
strategic priorities and three optimization
opportunities. Each identified as key to ensuring
long-term sustainable growth.
Finally, with the implementation of new Ways of
Working, we are building a powerful execution
engine by mobilizing our people throughout the
organization. On the following pages, we present the
elements in Business Plan 2026 and follow up on
the progress made during 2022.
Nilfisk value proposition
We see opportunities to create value for our
customers, our people, our shareholders, and our
communities. Our strategy is focused on long-
term sustainable growth, and our value creation
proposition is based on three fundamental pillars:
Lifecycle services, Customer-centric innovation, and
our Sustainability commitment. These pillars act
as guideposts for each element within the rest of
Business Plan 2026.
Lifecycle services
Optimizing customer value creation
Customer-centric innovation
Ensuring technology-enabled value
creation
Sustainability commitment
Creating value for all stakeholders
NILFISK ANNUAL REPORT 202211
Ways of WorkingOptimization opportunitiesStrategic priorities Financial targets for 2026Outlook for 2023 Sustainability 2022Capital allocation Sustainability targets 2030
Our governanceFinancial Statements
Management Review Our resultsOur businessOur strategy2022 in brief
Nilfisk value propositionBusiness Plan 2026
NILFISK VALUE
PROPOSITION
STRATEGIC
PRIORITIES
OPTIMIZATION
OPPORTUNITIES
WAYS OF WORKING
(WOW)
Lifecycle
services
Customer centric
innovation
Sustainability
commitment
Execution culture Digitally enabled Empowered people
Develop
service-as-a-business
Grow in
large-scale markets
Lead with
sustainable products
Optimize
European leadership position
Enhance
supply chain robustness
Unleash growth of
specialty business
Optimizing customer
value creation
Ensuring technology-enabled
value creation
Creating value for all
stakeholders
• Nilfisk Operating System
• Strategy deployment and
managing projects
• IT backbone
• Digital applications and
customer interface
• Mobilizing the organization
• Growth mindset
Business Plan 2026
Focus on long-term sustainable growth
NILFISK ANNUAL REPORT 202212
Financial targets for 2026Outlook for 2023 Sustainability 2022Capital allocation Sustainability targets 2030
Our governanceFinancial Statements
Management Review Our resultsOur businessOur strategy2022 in brief
Ways of WorkingOptimization opportunitiesStrategic prioritiesNilfisk value propositionBusiness Plan 2026
Strategic priorities
The strategy review process in 2021 clearly
identified three growth platforms that offer
significant potential for value creation across all
stakeholders. These are our strategic priorities in
Business Plan 2026.
Develop Service-as-a-business
Service-as-a-business is a key strategic priority
for Nilfisk. For us, this means a shift from the
product-centric traditional model with a reactive
repair offering to a proactively managed business
providing a lifecycle solution combining a range of
services around the products to provide maximum
customer value. This entails a move towards
complementing the product offering with a range of
services throughout the lifecycle of our professional
cleaning equipment. The return is expected in the
form of increased customer satisfaction and loyalty
as well as an improved ability to generate stable
recurring revenues and enhance profitability.
Progress report
Develop Service-as-a-business
The year 2022 was formative for the service
organization. In August, several functions came
together in the new Service Business under one
leadership working towards a dedicated profit
and loss responsibility with reporting from 2023.
Anupam Bhargava was appointed EVP, Head
of Global Service and member of the Nilfisk
Leadership Team.
Together with 900 colleagues in the service
organization as well as colleagues across Nilfisk,
Anupam initiated the strategically important
work of integrating Service-as-a-business into
our offerings.
One key goal is to ensure professionalization
of the service offering and scaling of service
contracts across our markets and customers.
This is a fundamental evolution: from a
traditional and reactive model of selling repair
services and spare parts towards a company
that proactively delivers total solutions for
maximum customer value across the lifecycle of
equipment ownership and use.
As we increase our focus on customer-centric
innovation and life-cycle services, Service-as-
a-business will help maximize the customer
value proposition. We will help our customers
to optimize productivity and sustainability of
their own processes. This will be done through
a focus on ensuring cleaning performance,
reducing total operating costs, while improving
sustainability. These efforts, combined with an
ambition to deliver a best-in-class customer
experience, will help Nilfisk to become the
professional cleaning partner of choice for our
customers.
The objectives for the service organization are
clear and backed with actions to ensure tangible
results. We are applying our Nilfisk Operating
System methodology for consistent strategy
deployment to ensure progress and follow up.
As from 2023, the Service Business will be fully
established in the internal reporting and will be
reported as an operating segment in the external
reporting.
Revenue from Service Business, mEUR
In 2023 Service-as-a-business will focus on
further developing an improved and seamless
end-to-end customer experience that includes
preventive maintenance and repairs, as well
as parts, accessories and consumables. With
a premium contract, Nilfisk tends to all the
customer’s needs to ensure maximum uptime,
ensuring that the customer always have their
machines up and running.
295
2021
1
2022
1
2026
2
320
375-415
1
For 2021 and 2022, Aftermarket has been used as an
estimate for Service Business revenue.
2
Target for Service-as-a-business in Business Plan 2026.
Growth platforms for value creation
Business Plan 2026 is centered around three
strategic priorities and three optimization
opportunities identified as key to ensuring long-term
sustainable growth.
Strategic priorities are growth platforms that we will
strengthen to harvest substantial long-term growth
and value creation potential.
Optimization opportunities are existing growth
platforms that offer significant additional value
creation opportunities.
Estimated global service market size, 2021
2021 McKinsey Study
NILFISK ANNUAL REPORT 202213
Ways of WorkingOptimization opportunitiesNilfisk value propositionBusiness Plan 2026 Financial targets for 2026Outlook for 2023 Sustainability 2022Capital allocation Sustainability targets 2030
Our governanceFinancial Statements
Management Review Our resultsOur businessOur strategy2022 in brief
Strategic priorities
Grow in large-scale markets – first step US
We have opportunities to strengthen our position in
several large-scale markets. The US market is by far
the largest single market for professional cleaning
equipment, and it represents approximately 35%
of the global market. We have a substantial and
growing market presence in the US, and while our
market position was strengthened significantly in
2021 and 2022, we see further opportunities for
above-market growth. That means the US market
is of particular importance and a clear priority. We
are building on a strong manufacturing base while
further leveraging the highly-skilled team at our US
R&D center. In 2022, we primarily directed our focus
to two distinct areas for value creation. We used
our strong ability to generate leads to support our
distribution partners and we leveraged our targeted
approach to large customers to drive growth in this
strategically important region. As a result, revenue
in US grew 10% organically in 2022 and increased
its share from 25% of the total business in 2021 to
30% in 2022.
Building a strong organization
In 2022, we introduced an Americas region
empowered to make decisions close to
the customers. In June, Jamie O’Neill was
appointed EVP, General Manager Americas
Region, and member of the Nilfisk Leadership
Team. With this appointment, a new region
covering USA, Canada and Latin America,
responsible for coordinating the day-to-day
activities across all functions was created. This
entailed developing leadership closer to the
front line, with oversight across all functional
areas, enabling responsiveness and customer
focus. The collaboration around mitigating the
severe business interruption when a tornado
wiped out Nilfisk US based distribution center
end-March 2022, was a good example of the
importance of leadership at the front line.
During 2022, our new ways of working were
implemented across the Americas region.
Investments in people and competencies
were made and we took steps to empower
our people and unleash the potential in the
organization. This in turn contributed to
creating a growth mindset and collaboration
culture.
Additionally, three key areas to drive growth in
the large-scale US market were identified:
• focus on strategic accounts
• transforming customer perception of Nilfisk
from being a vendor to becoming a preferred
partner and
• focus on sustainability, diversity, and
Corporate Social Responsibility (CSR)
Winning with strategic accounts
A customer-centric approach was the basis of
the quality and profitability review of more than
hundred strategic accounts over the last years.
The goal was to ensure close ties to each
customer and that they were being serviced in
the right setup. This approach led to the 2021
win of a substantial agreement with United
Rentals, the largest equipment rental company
in the world. This collaboration was expanded
in 2022. The partnership with the major US
retail chain Walmart was also enhanced and
extended.
The strongest 2022 growth, however, came
from two strategic accounts. Menards, an
American home improvement retail company
has been a long a time partner. In 2022 that
partnership strengthened when they named
Nilfisk as their exclusive autonomous partner
for more than 300 stores. In addition, Envoy
Solutions, a nationwide distributor of cleaning
equipment became a Nilfisk strategic partner.
253
2021 2022 2026
1
316
340-380
Revenue in the US, mEUR
1
Target in Business Plan 2026.
Strategic priorities – continued
Progress report
Growth in large-scale US market
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Our governanceFinancial Statements
Management Review Our resultsOur businessOur strategy2022 in brief
Strategic priorities
Progress report
Lead with sustainable products
During 2022, we made important progress on
our modularity initiatives, as well as with our
technology projects.
Furthermore our focus was on reducing the
energy consumption and resource usage
in our product lines. This strongly supports
our ambition for scope 3 and will reduce the
carbon footprint of our products.
As part of our initiatives in Business Plan 2026,
we will upgrade existing product ranges. In
2022, four Lithium-Ion battery driven products
were launched within floorcare and IVS. Further
product launches based on this technology are
in the pipeline to come to market in 2023.
In addition to the upgrade of existing products,
Business Plan 2026 is also focused on new
product offerings. In 2022, we expanded the
line of safety vacuums with the new Aero
series launched in October. A technical upgrade
of Nilfisk performance and filtration system
enabled us to accommodate our customers’
need for a compact safety vacuum in the
building and construction segment.
To ensure sustainable and profitable growth,
a cost of goods sold optimization program
in close collaboration between R&D, sourcing
and operations was initiated in 2022. The first
tangible effects were achieved within floorcare
and vacuum cleaners. The results came from
assembly optimizations and from the use of
batteries and metal parts sourced through this
program.
Lead with sustainable products
We aim to lead the industry when it comes to
sustainable products and solutions. To reach this
target, we will provide upgrades to our current
offering of products and services in the years ahead.
The upgrades will introduce new technologies,
features, and digital functionalities. We have
fundamentally reviewed our product and technology
development roadmap to focus on delivering
Strategic priorities – continued
sustainable technologies, products, and solutions.
Any new product or platform will be designed to
be significantly more energy and resource efficient
than previous versions, and through modularity, will
be able to broaden our offering while controlling
costs, improving serviceability, and reducing
complexity. This will allow for resource-optimized,
scalable growth that contributes to our enhanced
sustainability commitments.
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Our governanceFinancial Statements
Management Review Our resultsOur businessOur strategy2022 in brief
Strategic priorities
Optimization opportunities
Our strategy review process in 2021 clearly
identified three optimization opportunities of
existing growth platforms. For each of these
growth platforms, we can optimize and strengthen
our leading position in the professional cleaning
equipment industry to ensure higher value creation.
These are our optimization opportunities in
Business Plan 2026.
Our work to optimize Europe is focused on our
branded professional business. Here, our work
to regain momentum and further develop the
segmented go-to-market approach continued
during 2022. Smaller customers were to a
larger extent served via inside sales support
function and through the Nilfisk e-commerce
platform. More resources were deployed
towards our growth platforms, enabling the
development of lifecycle service relationships
and an increased focus on offering IVS
solutions.
Additionally, in 2022 we aimed our attention
at Nilfisk focus segments: Contract Cleaners,
Warehouse & Logistics, Manufacturing,
Healthcare, Education and Retail. The ability to
attract large strategic accounts within these
segments and across the European countries
benefited revenue. Our broad product range,
solid service offering, and an improved supply
situation on most product lines also drove
revenue.
Finally, our pricing excellence was an
important revenue driver. During 2022, we
significantly stepped up our pricing actions
and professionalized our processes. This
resulted in an improved stick ratio on our
pricing actions, which was a key contributing
factor to offset the margin dilution impact of
the cost inflation. Summing up, we achieved a
modest revenue development in 2022 within
our European branded professional business.
Growth was strongest in countries, where the
integrated service-business model has been
developed and matured. We will continue
the roll-out of the integrated business model
throughout Europe.
Revenue in Europe, mEUR
2021 2022 2026
1
700-750
Consumer
Branded professional incl. Private label & other
517
86
603
520
73
593
1
Target in Business Plan 2026.
Progress report
Optimize European leadership position
Optimize European leadership position
Europe remains our largest and most profitable
region. The implementation of a segmented go-to-
market approach will enable us to achieve broader
and more efficient market coverage. The goal is to
optimize customer value creation while increasing
sales efficiency, including for our Service and
Industrial Vacuum Solutions (IVS).
NILFISK ANNUAL REPORT 202216
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Our governanceFinancial Statements
Management Review Our resultsOur businessOur strategy2022 in brief
Optimization opportunities
Enhance supply chain robustness
Global supply chain challenges over the past
two years have stress tested the robustness of
our supply chain. We have identified important
optimization opportunities that allow us to cater for
targeted volume growth with moderate investments.
In addition, Business Plan 2026 incorporates key
optimization levers that will positively impact cost
competitiveness as well as the overall robustness of
our supply chain.
A key operational focus in 2022 was managing
the business interruption from the tornado
destruction of the US distribution center end-
March 2022.
However, our strategic focus during the year
was on four key topics to enhance supply
robustness and manage the accelerating
increase in both material and energy costs:
• Restoring our delivery performance while
catching up with back orders
• Ensuring capacity for growth. This led to
investments into a line expansion at Brooklyn
Park to expand production
• Enhancing robustness of materials supply
and mitigating the effects of global supply
chain issues by reconfiguration the supply
base, expanding our sourcing capabilities,
optimizing transport capacity, and reducing
lead times
• Driving cost competitiveness of materials to
secure margins
The aim is longer-term benefits. However, we
did see slight improvements within logistics,
sourcing, and lead times in the second half of
2022. Looking ahead, we expect global supply
chain constraints to ease further in 2023.
Finally, as a part of our new Ways of Working,
we created regional operations for better
synchronization with market needs and faster
response times.
Optimization opportunities – continued
Progress report
Enhance supply chain robustness
NILFISK ANNUAL REPORT 202217
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Our governanceFinancial Statements
Management Review Our resultsOur businessOur strategy2022 in brief
Optimization opportunities
1
Target in Business Plan 2026.
Unleash growth of specialty business
Industrial Vacuum Solutions (IVS) is a specialized
niche within professional cleaning equipment.
Products are often customized and used in highly
regulated workplaces exposed to dangerous or
combustible dust. In this environment, Nilfisk
stands out as a world-leading manufacturer and
service supplier with deep insights and know-how
from decades-long experience with products and
application.
During 2022, IVS strengthened its market
position and expanded its market share
through double-digit revenue growth. This
was done by using a range of strategic levers
laid out in Business Plan 2026. Each of the
initiatives has a detailed implementation
plan and concrete targets for business
improvements. Nilfisk is targeting 40% growth
in the IVS business from 2021 to 2026,
equivalent to a revenue increase of between 20
and 30 mEUR.
IVS revenue development, mEUR
Creating an entrepreneurial IVS business
During 2022, Nilfisk recreated IVS as a separate
business with its own value chain while
leveraging the strength of the global Nilfisk
sales force. An organizational structure with
site leadership, an IVS General Manager, and
a dedicated IVS Specialty Business Sponsor
anchored in the Nilfisk Leadership Team was
put in place to drive focused leadership of
this business. The organizational changes
were made in line with our Ways of Working
to create an organization with end-to-end
responsibility across functions that can act and
adapt close to the customers.
A key component in the new business set-up
was to strengthen the IVS Center of Excellence
in Zocca, Italy to drive a value-chain centered
around IVS specialist capabilities and know-
how. Since its inception, the IVS business has
evolved into a culture of entrepreneurship,
collaboration, and community-feeling. The
results include more business opportunities
and in turn strong revenue growth, higher
customer satisfaction, and increased retention
of IVS employees.
64
84-94
2021 2022 2026
1
Double digit
growth
Optimization opportunities – continued
Key customer segments for IVS include
manufacturing environments within pharma and
food as well as iron, metal and construction. By
leveraging a broad product offering with deep
customer understanding and application know-how,
Nilfisk can take advantage of the growth potential
in IVS. As a first step, Business Plan 2026 initiated a
new organizational structure with IVS as a separate
business to drive a new culture and entrepreneurial
spirit, unleashing the potential in IVS.
Progress report
Industrial Vacuum Solutions (IVS)
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Management Review Our resultsOur businessOur strategy2022 in brief
Optimization opportunities
T
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l
s
C
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l
t
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r
e
I
m
p
a
c
t
Nilfisk
Operating
System
Strategy
deployment
Projects
and resources
Business
improvement
Daily
business
The inner core of the NOS is based on 3 building blocks: Culture, Tools and Impact
New Ways of Working are creating a powerful execution engine
Successful strategy implementation is rooted in
clear priorities and focus but it also depends on
disciplined execution and structured follow up.
Ways of Working is comprised of three distinct
areas: strategy deployment in the form of our Nilfisk
Operating System (NOS), creating a digitally-enabled
organization and empowered people. Collectively
the Ways of Working will enable the organization to
deploy business levers through an enhanced focus
on problem solving, process improvement, end-to-
end responsibility and digital support. Separately
and together, these new Ways of Working form a
powerful execution engine that is instrumental in
implementing our strategy.
Building execution culture with Nilfisk Operating
System
During 2022, we took large strides towards a
broad-based implementation of NOS. NOS involves
strategy deployment and a common methodology
for problem solving and continuous process
improvement. For all strategic priorities, we have
established specific action plans with concrete
targets. A total of 600 managers and project
participants were trained in NOS during 2022.
NOS consists of 4 elements
Strategy deployment into strategic
priorities and optimization opportunities,
each with clearly defined targets.
Project and resources, including how
to best manage projects and allocate
resources towards our strategic priorities
and optimization opportunities.
Business improvement, including
structures, tools, and data points
to manage progress and navigate
opportunities and risks proactively.
Daily business, including structures, tools,
and data points to manage everyday
activities to achieve operational targets.
Digitally enabled is centered
around 4 initiatives
Global SAP rollout to reach more than
90% revenue coverage with a standardized
SAP solution. At the beginning of 2022,
we kicked off the project in Mexico for a
roll-out to our factory as well as sales and
service units.
Expansion of Nilfisk’s own business sys-
tems, including CRM, eCommerce solu-
tions, and Global Service System.
Harmonization of Master Data to stan-
dardize data and process it. In the first
half of 2022, we put a dedicated organiza-
tion in place.
Build-up of Nilfisk Business Intelligence
Systems to provide fast and standardized
decision support and allow for predictive
analytics to support decision making.
2022 progress
During 2022, we worked towards creating
clear accountability for each area in
Business Plan 2026.
Early 2022, IVS was carved out as a
separate business and the Service
organization was announced. In June
2022, the Americas Region was created.
Finally, in early 2023, we announced
Europe and APAC as separate regions
going forward. This created a more
empowered organization. At the same
time, we are fostering a culture based on
growth mindset, the belief that capabilities
can grow over time, and that any setback
is an opportunity to learn, adapt, and grow.
From Q2 2022, we initiated the process
of mobilizing the entire organization to
ensure that everyone contributes to the
successful implementation of Business
Plan 2026.
Creating a digitally-enabled organization
Strong execution requires real time data and
transparency. For Nilfisk, digital enablement
means providing all relevant information digitally
in real-time at the fingertips of decision makers,
and driving efficiency and value with a digitized
customer interface. Together with NOS, digital
enablement creates successful execution. As part
of our Business Plan 2026, we have put strong
investment plans in place for creating a digitally-
enabled organization.
Empowered people as a prerequisite for an
execution-focused organization
People are the most essential part of a successful
strategy execution. In Nilfisk, empowerment is
based on our strategy deployment methodology
(NOS). This means being digitally enabled and
empowered decision makers. It requires a
broadened end-to-end responsibility for more agile
and closer to customers accountability and decision
making. To foster customer-centricity, execution
agility, and results ownership, we are empowering
our people in the business by delegating
responsibility. This will instill a culture that supports
execution.
NILFISK ANNUAL REPORT 202219
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Management Review Our resultsOur businessOur strategy2022 in brief
Ways of Working
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.
For our outlook, we expect that the current macro-
economic uncertainty will continue into 2023,
leading to some volume decline, particularly in the
European market.
The range for organic revenue growth is expected
to be -2% to 2%. This is supported by full-year
effects of pricing actions completed in 2022 and
by a substantial order book at end-2022. Negative
organic growth would require a worsening of current
trading conditions.
The range for the EBITDA margin bsi is expected to
be 12% to 14%.
Given our ongoing initiatives and investments in
structurally improving the business, our financial
targets for 2026 are confirmed.
-2 to
Organic revenue development
12% to 14%
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
Outlook for 2023 Financial targets for 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.
NILFISK ANNUAL REPORT 202220
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Management Review Our resultsOur businessOur strategy2022 in brief
Financial targets for 2026Outlook for 2023
From commitments to action on a science-based
pathway
As a global market leader for professional cleaning
solutions, we acknowledge the importance of
reducing our climate footprint and have chosen to
follow a science-based approach in doing so.
Nilfisk has committed to decarbonizing the
business across scope 1, 2 and 3 as verified by
the Science Based Target initiative (SBTi). Having
science-based targets provide Nilfisk with a clearly
defined path to reduce emissions in line with the
Paris Agreement goals.
This commitment aligns to a decarbonization
trajectory curbing the global temperature rise to
well-below 2°C above pre-industrial levels. In 2030,
it will be delivered by achieving a 48% reduction of
greenhouse gas (GHG) emissions intensity from the
use of our products compared to 2021 in addition
to a 35% absolute reduction of scope 1 and 2
emissions compared to 2019.
In June 2022, Nilfisk’s GHG emissions of 2021 were
verified by the external inspection and certification
company, SGS. In addition, for 2022 data, limited
assurance was provided on selected ESG data as
disclosed in Nilfisk's Sustainability Report 2022.
In 2022, absolute scope 1 and 2 emissions
decreased by 10% compared to base year 2019
and scope 3 emission intensity decreased by 11%
compared to base year 2021.
Sustainability progress in 2022
35% reduction
of absolute scope 1 and 2 GHG emissions by 2030
from a 2019 base year
48% reduction
of scope 3 GHG emissions from use of sold products
per unit of gross profit by 2030 from a 2021 base year
25% women
in senior management by 2026
Diversity and inclusion
Nilfisk is committed to providing an inclusive and
equal experience for all employees, regardless of
race, ethnicity, religion, physical or mental ability,
gender, gender-identity or expression, sexual
orientation, and age. In Business Plan 2026, Nilfisk
set a near-term target, as a first step, to increase
the equal representation of the under-represented
gender in senior management positions from 14%
in 2021 to 25% by 2026. In 2022, the representation
of women in senior management was 19%, which is
5 percentage points more than in 2021. Progress on
this target, as well as the other sustainability targets,
is reported quarterly to the Nilfisk Leadership Team.
Diversity drives belonging
The culture of empowering diversity across the
company was verified in Nilfisk’s engagement
survey from November 2022. When asked if people
from all backgrounds are treated fairly at Nilfisk the
average score given from all employees was 8.7 (on
a 10 scale). Breaking down this number by gender
it was 8.7 for men, 8.6 for women. With a response
rate of 88%, the survey results give a good indication
on Nilfisk as an inclusive workplace.
Sustainability targets
towards 2030
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.
Capital allocation
principles towards 2026
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Our governanceFinancial Statements
Management Review Our resultsOur businessOur strategy2022 in brief
Sustainability targets 2030Sustainability 2022Capital allocation
Financial StatementsManagement Review
NILFISK ANNUAL REPORT 202222
Our governanceOur resultsOur strategy2022 in brief Our business
Our business
Education
Our customers range from large global contract
cleaners buying fleets of machines across the
product range to smaller businesses that buy
a single machine. We work with our customer
segments in three business verticals: CCI, Industry,
and ABCA.
CCI
The CCI segment is made up of Contract Cleaners
and Institutions, including customers in
Optimizing cleaning task efficiency is key for these
customers, since they are facing severe labor
shortages alongside increasing requirements
for high-quality cleaning results in public-facing
environments.
Industry
Industry covers areas like
For these customers, cleaning is a key element in
ensuring efficient and safe production workflows,
proper maintenance of production equipment, and
compliance with quality standards and regulations.
From fleet to single machine customers
ABCA
ABCA refers to
Robust and high-performing cleaning solutions play
an important role in securing safe work conditions
in dirty, dusty, and harsh environments, as well as
ensuring that key equipment is regularly maintained
for optimal efficiency.
As part of Business Plan 2026, six application
segments were identified as focus segments with
above-market growth and where Nilfisk is well
positioned to gain share. The segments are
These focus segments cover about two-thirds of the
global market for professional cleaning equipment.
Consumer
In addition to our professional customer base,
Nilfisk also offers consumers a range of high-
pressure washers and vacuum cleaners.
Automotive
Healthcare
Healthcare
Education
Agriculture
Manufacturing
ManufacturingContract
cleaners
Pharma
Warehousing
& Logistics
Warehousing
& Logistics
Offices & Public
buildings
Iron & Metal
Building &
Construction
Retail
Retail
Hospitality
Food &
Beverage
NILFISK ANNUAL REPORT 202223
Structural changes in cleaning-trendsOperationsChannelsSolutions
Our governanceFinancial StatementsManagement Review Our resultsOur businessOur strategy2022 in brief
Our customers
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 our value proposition that anchors
our efforts to provide lifecycle services, ensure
customer centric innovation and fulfill our
sustainability commitment. In combination with
deep customer insights, this value proposition is 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 for most of our products is
managed from three competence centers, one in
each of our regions (Europe, Americas and APAC
& MEA). R&D is spread across a total of eight
locations in Denmark, Italy, Hungary, US, Mexico,
and China. In 2022, 2.9% of total revenue was spent
on Research & Development, an increase from the
average level of 2.7% for the years 2020 to 2021.
Nilfisk has a unique product range in terms of
breadth and depth versus peers in the industry.
Our product portfolio spans from advanced
industrial vacuum solutions to pressure washers
and floorcare equipment to simpler yet effective
household vacuum solutions. These products and
our services are designed to ensure customer value
through high durability, enhanced productivity, and
a strong focus on sustainability and safety. Our
product and service offerings are described below.
Floorcare
Our largest product line is floorcare, spanning a wide
range of scrubber dryers from small walk-behinds
Providing a wide range of customer-centric solutions
to large ride-ons and autonomous solutions. It also
includes sweepers, combination machines, carpet
extractors and burnishers. Our products enable our
users to deliver a great customer experience and to
provide good working conditions for employees and
students, as well as a safe environment for workers,
customers, and patients in compliance with health
and safety regulations.
Vacuum cleaners
Nilfisk offers a wide range of vacuum cleaners
for households and commercial customers. Our
products range from small commercial canisters,
upright and backpack vacs to professional wet &
dry, and safety vacs to large industrial systems.
Each product is designed to ensure clean,
attractive spaces in homes, hospitality, offices,
and transportation as well as safe and clean
working conditions in building and construction,
manufacturing, and food production by removing
hazardous and explosive dust and fumes.
Pressure washers
Our wide selection of pressure washers spans
an extensive range of domestic use products to
professional cold or hot water pressure washer
products, both stationary and mobile. The range is
tailored to ensure that home and gardening needs
are easily handled, and that farming, building,
transportation and industrial equipment is always
in great condition, ready for use. Our products are
known for their compliance with strict health and
safety regulations common in farming and food
production.
Aftermarket
Easy and quick access to professional service
is a key value proposition for our customers.
They know Nilfisk products can help them run
their day-to-day operations smoothly, predictably,
and with maximum uptime. With the help of our
service technicians, customers can maximize
the efficiency of their cleaning operation across
the entire equipment lifecycle. In addition to our
range of service solutions, Nilfisk offers spare
parts, accessories, and consumables for all
product groups. Nilfisk service contracts provide
a combination of preventive maintenance, needed
repairs including parts and labor, and consumables
to ensure optimal performance.
2022 developments
In 2022, organic revenue growth was driven by
floorcare and aftermarket.
Within branded professional, revenue from floorcare
and vacuum cleaners grew organically across the
three regions, with Americas growing the fastest.
Organic revenue from pressure washers saw a
small decline within branded professional compared
to 2021. This was caused by a pullback in Europe
driven by lower revenue from ABCA customers.
Revenue from Consumer and Private label & other
declined organically in line with their respective
markets.
Finally, aftermarket grew revenue organically
in 2022, driven by growth from the branded
professional segment across regions, with Europe
being the strongest growth driver. Aftermarket as a
share of total revenue increased slightly from 29.6%
in 2021 to 29.9% in 2022.
NILFISK ANNUAL REPORT 202224
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Solutions
With a global sales force and well-established sales
channels, we have developed valuable customer
relationships and partnerships all over the world,
supporting our targeted go-to-market approach.
More than 1,500 full-time employees work in our
Nilfisk sales force and sales support function across
more than 40 countries in our three regions: Europe,
Americas, and APAC & MEA. These employees
support both direct sales to customers and indirect
sales via distributors.
Direct sales
Building relationships with customers while offering
personal attention and quality service are key
parameters for our national sales teams. Dedicated
national key account management means our sales
force can provide customers with the most relevant
information along with offers for standardized
packages of machines and cleaning solutions.
Direct sales to customers predominate in our
Europe region, where they account for more than
50% of sales.
Distributors
Some geographies and customer types are served
by handpicked and validated distributors. Through
an extensive network of dealers and distributors,
Nilfisk’s products and solutions are sold in more
than 100 countries. Our distributors range from
large national exclusive dealers to smaller vendors
selling a variety of cleaning products and brands.
These distributors help us achieve solid market
access, a wide customer base, and an intimate
understanding of the local market, in many cases
building on existing relationships with specific
businesses and customer segments. Indirect sales
to customers are predominant in our Americas
region, where they account for more than 75% of
sales.
Channels to serve our customers
Strategic accounts
We serve our largest customers as a dedicated
and, where needed, global partner. We offer
internationally coordinated key account
management for our strategic accounts, such as
global contract cleaners and large fleet buying
enterprises. We offer individually-selected packages
of equipment and autonomous solutions, financial
solutions, as well as installation and training.
Service
Professional customers are constantly looking
for productivity gains. For these customers,
professional cleaning equipment, maintenance,
service and access to parts, accessories, and
consumables (PAC) are key parameters for
success. Nilfisk offers comprehensive service and
aftermarket attention, with the goal of optimizing
customer value creation through maximum
uptime on cleaning equipment throughout the
utilization lifecycle. With our increased focus on
building Service-as-a-business, both existing and
new customers are offered service contracts with
their equipment. About 500 Nilfisk Field Service
Technicians and an additional 300 authorized
third-party technicians work within Nilfisk Service
Solutions to deliver the desired customer outcomes.
Third-party technicians are certified by Nilfisk to
ensure consistent service quality across our global
network.
E-commerce
Our web-based platform gives dealers the ability
to do business in a convenient way, allowing for a
faster buying process and enhanced flexibility. In
2022, we continued the global roll-out of the new
global e-commerce platform in North America.
The goal is to ensure improved online customer
experiences while simplifying and globalizing the
digital sales process.
NILFISK ANNUAL REPORT 202225
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Channels
Nilfisk’s manufacturing setup is based on
assembling components purchased from external
suppliers or made in-house. Assembly is done in
Nilfisk’s nine manufacturing sites located across
three continents. These nine sites cover the full
Operations setup
Ongoing supply chain constraints
Cost-effective sourcing of components as well
as efficient manufacturing and distribution are
important value creation factors for our operations.
Mitigating the effects of the global supply chain
constraints that arose in 2021 was a major theme
for Nilfisk in 2022. So was the significant increase in
the cost of energy and materials.
Limitations in material and component supply as
well as transportation capacity continued during
2022. In the second half of the year, we recognized
a gradual improvement of the cost and availability
of transportation capacity. We stayed focused on
actions we began in 2021 to mitigate constraints
on material and components. Global supply chain
challenges continued to limit growth, but to a lesser
extent in the second half of 2022. Challenges were
limited to fewer products and production sites.
Despite continued COVID-19 challenges in China, we
managed to keep manufacturing and distribution
functioning in China throughout the year.
To mitigate the ongoing supply constraints, we
continued to support our suppliers and optimized
transportation capacity as needed to reduce
cost and lead time. In addition, we implemented
alternative supply sources for components to
enhance our supplier network and worked with
adapting product specifications where relevant to
enable a broader base of supply.
Transportation capacity improved during 2022 and
rates on sea freight steadily declined. Rates on road
transportation to end customers remained high. An
initiative to lower costs for freight was initiated in
Q4 2021 and freight costs improved further during
the second half of 2022.
Finally, capacity expansion investments were made
in the Brooklyn Park facility during 2022. These
investments will improve output capacity in 2023
and onwards.
Tornado destroying our USDC
A natural catastrophe occurred at the end of March
2022 when a tornado hit our US distribution center
in Springdale, Arkansas and destroyed it completely.
Operations were quickly resumed in a new location
with a close-to-normalized level of machine
supply in June 2022. However, parts recovery was
challenged in the second half of 2022 and only
normalized towards end-2022.
Moving towards a more regional structure
During 2022, we reorganized the Operations
organization, moving towards a more regional
structure. Three regional Operations (Europe,
Americas and APAC & MEA) were charged with
serving our respective customers end-to-end in
the markets. Global teams within functions such
as planning, sourcing, quality, and operational
excellence continue to ensure direction and
consistency of our operations.
The outcome is a more customer-focused
Operations organization. It works in close
connection with customers and our sales
organizations, allowing for fast decision-making as
close to the market as possible.
Digitally-enabled Ways of Working
During 2022, we initiated a SAP implementation
project in Mexico as part of our digitally-enabled
new Ways of Working. We will continue expanding
the implementation of SAP in 2023 and beyond.
9 manufacturing sites
• Brooklyn Park (MN, US)
• Fort Pierce (US)
• Redlands (US)
• Querétaro (Mexico)
• Sziget (Hungary)
• Nagykanizsa (Hungary)
• Aalborg (Food, Denmark)
• Zocca (IVS, Italy)
• Dongguan (China)
Nilfisk’s manufacturing, R&D and distribution locations
8 R&D facilities
• Brooklyn Park (US)
• Querétaro (Mexico)
• Sziget (Hungary)
• Hadsund (Denmark)
• Aalborg (Food, Denmark)
• Zocca (IVS, Italy)
• Dongguan (China)
• Suzhou (China)
8 distribution centers
• Springdale (US)
• Morgantown (IVS, US)
• Penrith (UK)
• Ghent (Belgium)
• Tarragona (Spain)
• Trollhättan (Sweden)
• Horsens (Denmark)
• Shanghai (China)
1 ecommerce platform
range of products. Most products are only produced
at one specific site worldwide. The majority
of Nilfisk’s product range is shipped from the
Distribution Centers (DC’s), but an increasing share
is shipped directly from factories.
NILFISK ANNUAL REPORT 202226
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Operations
On March 30, a tornado swept through
Springdale, Arkansas.
In a three-mile path, it hit private homes, schools,
and businesses. Nilfisk’s 190,000 square foot
distribution center was destroyed completely.
Fortunately, nobody was injured. But inventory
and 85% of all parts and machinery were erased.
But from here on, a truly impressive and
determined team effort was initiated by the Nilfisk
employees. Determined to get the business up
and running, they struggled day and night to
resume activities.
As soon as the second day after the tornado had
hit, the first order was shipped from a local post
office. After just three weeks, our colleagues
in Springdale were able to begin service for
customers and distribute parts and materials,
although at a small scale compared to prior
levels.
One of the first steps was to secure another
location and map out facilities and IT
infrastructure. Internet, computers, racking, power
equipment, handheld units for processing and
Vertical Lift Modules were among the things that
had to be re-established.
Everyone contributed – around the clock in the
first days and weeks – and a two-shift workday
was implemented to increase capacity. Nilfisk
workers helped setup the new location and get
it operational. Others contributed to manual
processes to receive and ship out products.
Dedicated employees enabled a fast recovery
and helped lead the way back to some form
of normality. Capacity, facilities, and Ways of
Working remain less than perfect, but at year-
end 2022, the distribution center in Springdale
was servicing domestic parts orders within 36
hours. And equally important, IT infrastructure,
equipment, digital and storage tools were all 95%
operational.
The tornado event impacted daily operations
for months and added a significant amount of
additional costs towards resuming operations
in the new distribution center. Despite this, we
achieved a double digit organic revenue growth in
the US in 2022. This great result was only made
possible by the cross-functional collaboration and
determination of our people.
Tornado destroyed Nilfisk
US Distribution Center
I said several times
during my visits in
Springdale during the
recovery that these
people had so much
Nilfisk in their hearts that
I was sure that they also
had Nilfisk tattoos.
Peter Tanzer
SVP, Global Operations in Nilfisk
Parts supply out of US distribution center
Machine supply out of US distribution center
Week 52, 2022Week 10, 2022 Week 30, 2022
NILFISK ANNUAL REPORT 202227
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Operations
Study confirms increased perception of value of clean
During 2022 Nilfisk surveyed more than 400
floorcare machine purchase decision makers. The
study showed continued structural demand for
cleaning as well as increased perception of the
value of clean.
This has led to changed cleaning behaviors and
more focus on health and safety in the wake of the
COVID pandemic.
The findings in the study support the foundation
for Business Plan 2026, which sees professional
cleaning as a growth market driven by long-term
structural demand.
The study shows that
the increased standards
of cleaning, we saw
during the height of the
pandemic, remains. Over
nine in ten organizations
reported an increase in
the expected standard of
cleaning compared with
before COVID-19.
Martin Troelsgaard
Global Head of Insights
Over
90% of respondents report an increase in
the expected standard of cleaning compared with
before 2020
Nearly
of respondents expect this change
to be long term
Nearly
of respondents are monitoring
cleaning more frequently. Especially increased
inspections and documentation of processes and
task completion
Nearly
of respondents reporting increased
monitoring of cleaning see this as a long term
change
of respondents report increased focus on
the health and safety of their cleaning staff
Almost
of respondents are challenged by
the increased cost of cleaning.
NILFISK ANNUAL REPORT 202228
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Our governanceFinancial StatementsManagement Review Our resultsOur businessOur strategy2022 in brief
Structural changes in cleaning-trends
Financial StatementsManagement Review
NILFISK ANNUAL REPORT 202229
Our governanceOur businessOur strategy2022 in brief Our results
Our results
In 2022, Nilfisk continued
the growth trajectory and
delivered a solid set of results.
Demand for our products and
services remained fundamentally
strong and the company made good
progress on the execution of our
strategy Business Plan 2026. For the
year, we realized total revenue of 1,069.5
mEUR and organic growth of 4.9%, driven
by branded professional across all regions.
Growth in Americas remained very strong and
above market growth. EBITDA before special
items amounted to 140.8 mEUR corresponding to
an EBITDA margin before special items of 13.2%.
EBITDA amounted to 133.3 mEUR, corresponding to
an EBITDA margin of 12.5%.
Business performance
Revenue
2022 in brief
Revenue and organic growth by operating segments
Total revenue of 1,069.5
mEUR, corresponding to
reported growth of 7.5%
Organic growth for the total
business was 4.9%, driven by
branded professional across
all regions and particularly in
Americas, while Consumer and
Private label declined in line
with their respective markets
EBITDA amounted to 133.5
mEUR, corresponding to an
EBITDA margin of 12.5%
EBITDA before special items
amounted to 140.8 mEUR,
corresponding to an EBITDA
margin before special items of
13.2%
Special items amounted to 9.9
mEUR, and were mainly related
to the liquidation of Nilfisk Russia
and restructuring in connection
with the implementation of
Business Plan 2026
Operating profit amounted to
69.6 mEUR, corresponding to an
operating profit margin of 6.5%
Working capital amounted to
202.1 mEUR, corresponding to
a working capital ratio of 21.6%
measured on a rolling 12 months
basis
Operating cash flow reached
82.0 mEUR, up by 7.3 mEUR
compared to the prior year. Free
cash flow came to 54.5 mEUR,
a decline of 4.0 mEUR due to
higher investments
9% 6%
7%
Con-
sumer
5%
Private
label &
other
47%
45%
Europe
8%
8%
APAC
30%
35%
Americas
2021
2022
EUR million Revenue 2022 Revenue 2021
Organic
growth 2022 Other
Impact of foreign
exchange rates Total growth
Europe 481.0 466.0 6.7% -1.7% -1.8% 3.2%
Americas 372.2 296.3 12.5% - 13.1% 25.6%
APAC 86.8 79.2 4.6% - 5.0% 9.6%
Nilfisk branded professional
business 940.0 841.5 8.6% -1.0% 4.1% 11.7%
Consumer 72.7 86.0 -15.2% 0.3% -0.6% -15.5%
Private label and other 56.8 67.4 -15.7% - - -15.7%
Total 1.069.5 994.9 4.9% -0.8% 3.4% 7.5%
NILFISK ANNUAL REPORT 202230
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Business performance
Sales by product – Europe
mEUR
mEUR
Revenue
Share of total revenue
EBITDA margin bsi
EBITDA before special items Organic growth
Gross margin
Key markets: Germany, France, UK, Denmark, Sweden
Europe
11%
38%
Aftermarket
37%
34%
Floorcare
19%
10%
High-
pressure
washers
33%
18%
Vacuum
cleaners
2021
2022
In 2022, Europe achieved growth across many
markets, supported by strong pricing execution.
Although there has been a slowing of the economy
in connection with the war in Ukraine and
subsequent energy crisis and high inflation levels,
Europe continued to grow revenue through 2022.
Revenue came to 481.0 mEUR compared to 466.0
mEUR in 2021 corresponding to reported growth of
3.2%. The effect from foreign exchange rates was
-1.8% and the organic growth for the full year came
to 6.7%. The Europe South region saw the largest
growth year over year, expanding our significant
market share in France, while continuing to expand
in other markets like Spain and Turkey. Europe North
and Europe Central regions saw the first signs of
an economic slowdown, while key markets such as
Denmark and the UK performed well.
Gross profit for Europe amounted to 213.5 mEUR
in 2022, an increase of 3.0 mEUR from 2021. This
corresponded to a gross margin of 44.4% compared
to 45.2% in 2021. The gross margin was negatively
impacted by high inflation in raw material costs
and lower capacity utilization in our manufacturing
facilities. However, the negative impact from raw
materials was offset to a large extent by two price
increases executed during the year.
Overhead costs landed at 103.3 mEUR in the year.
The cost increase was driven by a mixture of sales
activity-related costs and costs impacted by the
inflation increases, such as fuel and energy. Despite
the challenge on overhead cost and gross margin,
the overhead cost to sales ratio improved slightly
year over year to 21.5%, 0.1 percentage point lower
than 21.6% in 2021.
As a result, the EBITDA before special items came
to 125.2 mEUR, 0.2 mEUR lower than 2021, leading
to an EBITDA margin before special items of 26.0%,
compared to 26.9% in 2021.
Financial highlights
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Europe
Key markets: US, Canada
Sales by product – Americas
The Americas again provided the highest growth
of our regions. The strategic priority in Business
Plan 2026 to ‘Grow in large-scale markets’
remained focused on the US and delivered a strong
performance in 2022. We saw solid market demand,
determined pricing execution, and an increasing
market share. This was in spite of the destruction of
the US Distribution Center by a tornado end-March
2022, which affected supply of all products primarily
during Q2 and Q3. It also led to a lower share of
delivery of parts, accessories, and consumables for
the last nine months of 2022.
Total revenue in Americas amounted to 372.2
mEUR in 2022 compared to 296.3 mEUR in 2021,
corresponding to reported growth of 25.6%. The
effect of foreign exchange rates was 13.1%,
implying an underlying organic growth for the full
year of 12.5%. All areas in the region delivered
double-digit organic growth. Latin America delivered
the highest growth through the dealer business and
in rental sales.
The US continued its growth based on strategic
initiatives within Business Plan 2026, including
an increasing share of direct sales to strategic
accounts. Canada grew primarily driven by the
continued development of our dealer business.
Gross profit for Americas amounted to 136.6 mEUR
in 2022, up from 115.6 mEUR in 2021. The gross
margin was 36.7%, 2.3 percentage points lower
than the level of 39.0% in 2021, driven mainly by
higher costs relating to higher raw material prices
and freight costs. The revenue mix also contributed
negatively to the gross profit margin, due to a lower
share of parts, accessories, and consumables
revenue, and some dilution from orders from the
backlog, which still had old prices. A large deal
within strategic accounts also impacted the gross
profit margin negatively, while overall contributing
substantially to EBITDA. The gross margin decrease
was partly offset by two price increases executed
during the year.
Overhead costs grew due to increased sales activity
and inflationary pressures. However overhead costs
grew less than revenue because of continued strong
cost management. EBITDA before special items
came to 65.5 mEUR, 9.4 mEUR higher than in 2021.
The EBITDA margin before special items at 17.6%,
was 1.3 percentage points lower than the level in
2021 as the lower overhead cost ratio did not fully
compensate for the decrease in gross margin.
Americas
mEUR
mEUR
Revenue
Share of total revenue
EBITDA before special itemsOrganic growth
Gross margin
12%
24%
Aftermarket
26%
55%
Floorcare
10%
11%
High-
pressure
washers
52%
10%
Vacuum
cleaners
2021
2022
Financial highlights
EBITDA margin bsi
NILFISK ANNUAL REPORT 202232
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Americas
Total revenue amounted to 86.8 mEUR, 7.6 mEUR
higher than 2021, corresponding to reported growth
of 9.6%. Foreign exchange rates positively impacted
the result by 5.0%, leading to an underlying organic
growth of 4.6%. The southeast Asian markets
delivered strong organic growth due to increasing
post-COVID economic activity, especially in the
hospitality segment. China experienced negative
growth due to continuous COVID-19 lockdowns until
early December. Organic growth in the Pacific region
was driven by Australia.
Gross profit amounted to 35.6 mEUR in 2022, up
from 32.6 mEUR in 2021. The gross margin was
41.0% compared to 41.2% in 2021. The negative
impact of higher costs was offset by pricing efforts.
Overhead costs grew only slightly because of
continued strong cost management. EBITDA before
special items came to 12.9 mEUR compared to 10.1
mEUR in 2021, driven by the positive development
in gross profit and limited overhead cost increase.
The EBITDA margin before special items increased
to 14.9% compared to 12.8% in 2021 due to the
decrease in the overhead cost ratio.
APAC
Key markets: Australia, China, Singapore, Thailand
Sales by product – APAC
Financial highlights
mEUR
mEUR
Revenue
Share of total revenue
EBITDA before special itemsOrganic growth
Gross margin
10%
31%
Aftermarket
32%
35%
Floorcare
24%
10%
High-
pressure
washers
34%
24%
Vacuum
cleaners
2021
2022
EBITDA margin bsi
NILFISK ANNUAL REPORT 202233
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APAC
The Consumer business was impacted by reduced
consumer confidence throughout 2022. The impact
was larger in the second half. As a consequence
of high inflation and energy price increases,
end-consumers displayed a reluctance to buy
outdoor and household equipment. In addition,
our distribution partners in retail markets reduced
their inventory levels, which impacted our sell-in
volume. Despite these challenges, the Consumer
business saw market share gains in Germany and
France. These share gains were realized through
the acquisition of new customers alongside
the successful launch of two new products, the
Core150 and Premium200.
The Consumer business posted revenue of 72.7
mEUR, compared to 86.0 mEUR in 2021, resulting
in reported growth of -15.5%. Underlying organic
growth amounted to -15.2% and was driven by a
slowdown in most markets, predominantly UK,
Sweden, and France.
Gross profit decreased by 4.7 mEUR to 24.5 mEUR
in 2022, while the gross margin declined slightly by
0.3 percentage point to 33.7% in 2022, from 34.0%
in 2021. The margin continued to be impacted by
higher freight rates, almost fully offset by price
increases executed during the year.
Revenue in the Private label business amounted
to 56.8 mEUR compared to 67.4 mEUR in 2021,
resulting in reported growth of -15.7%. The foreign
exchange effect was 0.0% and, consequently,
organic growth was -15.7%. The decrease in
revenue throughout the year was due to a decline in
demand from key customers.
Gross profit decreased by 3.0 mEUR due to a
decline of demand from our key customers in the
Building & Construction segment and came to
11.8 mEUR. The gross margin decreased by 1.2
percentage points to 20.8%, driven by increased
raw material costs only partly mitigated by price
increases.
Consumer
Private label and other
NILFISK ANNUAL REPORT 202234
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Private label and otherConsumer
Financial review for the total business
performance in all the regions, while the organic
growth in Consumer and Private label businesses
was -15.2% and -15.7%, respectively.
Gross profit
Gross profit for the total business amounted to
422.0 mEUR in 2022 compared to 402.7 mEUR in
2021. The gross margin was 39.5%, 1.0 percentage
point lower than in 2021. The decline was primarily
due to the continuing increase in raw material
costs, and to a lesser extent due to lower capacity
utilization at our manufacturing facilities. Alongside
this, freight costs increased in the first six months
of 2022. The two price increases executed during
the year, partly offset the negative effects.
Overhead costs and ratio
Overhead costs came to 342.5 mEUR, an increase
of 23.9 mEUR compared to 2021, of which foreign
exchange rate effects contributed 9.6 mEUR. The
remaining increase was due to higher activity,
inflationary pressure, as well as investments in
our growth platforms in line with Business Plan
2026. The overhead cost ratio was stable at
32.0%, reflecting continued focus on strict cost
management relative to the increased business
activity while still enabling investments into
Business Plan 2026 growth initiatives.
EUR million 2022 2021
Revenue 1,069.5 994.9
Gross Profit 422.0 402.7
Overhead costs 342.5 318.6
EBITDA before special items 140.8 144.3
Profit for the period 40.6 51.0
Financial ratios:
Organic growth
4.9% 20.7%
Gross margin 39.5% 40.5%
EBITDA margin before special
items 13.2% 14.5%
Overhead costs ratio 32.0% 32.0%
CAPEX ratio 2.5% 1.8%
Revenue
In 2022, total revenue for Nilfisk amounted to
1,069.5 mEUR compared with 994.9 mEUR in 2021,
corresponding to a reported growth of 7.5%. Foreign
exchange rates had a positive impact of 3.4%, with
USD as the main driver. This was partly offset by
impact from other of -0.8% predominantly driven
by the liquidation of Nilfisk Russia. Consequently,
organic growth reached 4.9%, and was within the
revised outlook for organic revenue growth of
between 4.5% and 6.5% given on October 26, 2022.
Organic growth in Nilfisk’s branded professional
business was 8.6%, positively impacted by
gross margin, and an unchanged overhead cost
ratio, led to a decline of the EBITDA margin before
special items of 1.3 percentage points.
EBITDA amounted to 133.3 mEUR, down from 139.9
mEUR in 2021. The EBITDA margin declined by 1.6
percentage points to 12.5%, driven by higher special
items.
Operating profit before special items and operating
profit
Operating profit before special items amounted to
79.5 mEUR compared to 84.1 mEUR in 2021. This
corresponds to an operating profit margin before
special items of 7.4% compared to 8.5% in 2021.
Operating profit came to 69.6 mEUR compared
to 79.7 mEUR in 2021. As a consequence, the
operating profit margin declined to 6.5% from 8.0%
in 2021. The decrease was driven by the lower
operating profit, as well as higher special items
compared to 2021.
Special items
Special items amounted to 9.9 mEUR compared
to 4.4 mEUR in 2021. Special items for 2022 were
mainly related to the decision to liquidate Nilfisk
Russia, leading to a write down of assets in Nilfisk
Russia and additional costs for redundancies.
Special items were also impacted by restructuring
costs in connection with the implementation of
Business Plan 2026. Special items in 2021 were
impacted by redundancy costs in connection with
changes in the executive Management Board.
Details on special items are described in Note 2.4 -
Special items.
Total R&D spend increased by 5.2 mEUR compared
to 2021 and amounted to 30.8 mEUR, equivalent
to 2.9% of total revenue in 2022. The increase was
driven by investments into modular platforms and
software development as part of the strategic
priority ‘Lead with sustainable products’ within
Business Plan 2026. Out of the total spend of 30.8
mEUR, 18.4 mEUR was recognized as an expense
in the income statement compared to 15.9 mEUR in
2021, while 12.4 mEUR was capitalized compared
to 9.7 mEUR in 2021. In addition to expensed costs,
total reported R&D costs for 2022 of 31.2 mEUR
(2021: 29.1 mEUR) also include amortization,
depreciation, and impairment of 12.8 mEUR,
compared to 13.2 mEUR in 2021.
Sales and distribution costs increased by 15.9
mEUR and amounted to 243.5 mEUR. Foreign
exchange rates contributed 8.7 mEUR, while the
remaining increase was driven by increased activity
and cost inflation within staff costs, freight to
customers, marketing costs and travel costs.
Administration costs rose to 70.1 mEUR compared
to 63.8 mEUR in 2021. Foreign exchange rates
contributed 1.2 mEUR, while the remaining increase
was driven by cost inflation and investments in
Business Plan 2026.
Other operating income/expenses was a net income
of 2.3 mEUR compared to a net income of 1.9
mEUR in 2021.
EBITDA before special items and EBITDA
EBITDA before special items amounted to 140.8
mEUR in 2022, corresponding to an EBITDA margin
before special items of 13.2% compared to 14.5% in
2021. The EBITDA margin before special items was
in line with the revised 2022 outlook of an EBITDA
margin before special items of around 13% provided
on October 26, 2022. The impact from the lower
EUR million 2022 2021
Total R&D spend 30.8 25.6
Capitalized 12.4 9.7
Expensed in the P&L 18.4 15.9
R&D ratio (% of revenue) 2.9% 2.6%
Expensed R&D spend 18.4 15.9
Amortization. depreciation and
impairment 12.8 13.2
Total R&D expenses
1
31.2 29.1
1
Excluding special items.
Total growth
7.5%
Revenue growth
994.9
mEUR
2021 Organic
growth
2022
4.9%
3.4%
-0.8
1,069.5
mEUR
Other
Foreign
exchange rates
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Share of profit from associates
Share of profit from associates amounted to 2.0
mEUR compared to 0.6 mEUR in 2021. The increase
was driven primarily by higher earnings in the
company M2H S.A.
Financial items
Financial items, net amounted to a cost of 17.0
mEUR in 2022 compared to a cost of 11.6 mEUR
in 2021. The increase in financial expenses was
primarily due to an increase in foreign exchange
losses as well as higher costs related to the new
loan facilities established in 2022.
Tax on profit for the year
Tax on profit for the year was a cost of 14.0 mEUR
compared to 17.7 mEUR in 2021. Tax on profit for
the year 2022 was related primarily to current tax on
profit of 23.4 mEUR partly offset by adjustment of
deferred tax of 3.4 mEUR. In 2021, tax on profit for
the year related was related primarily to current tax
on profit of 13.9 mEUR and adjustment of deferred
tax of 3.5 mEUR.
The effective tax rate for 2022 was 25.6 %
compared to 25.8% in 2021.
Profit for the year
Profit for the year amounted to 40.6 mEUR
compared to a profit of 51.0 mEUR in 2021.
Working capital
At the end of 2022, working capital was 202.1
mEUR, up by 26.4 mEUR compared to 2021.
Inventories amounted to 220.2 mEUR, unchanged
from end of 2021, but down from the levels
seen in prior quarters of 2022. Inventory was
in 2022 impacted by cost inflation and supply
chain constraints causing difficulty in sourcing
certain components and impacting lead times in
production. Despite this, inventories have been
brought down to the level end of 2021. In the main
production sites and distribution centers, inventory
levels were reduced with exception of the Americas
region adapting to the higher activity levels.
Inventory days decreased compared to 2021.
Trade receivables were 7.2 mEUR lower than same
time last year and amounted to 166.7 mEUR at
the end of 2022. The decrease was a combination
of higher sales activity, especially in Europe and
Americas, offset by a non-recourse factoring
program during the second half of 2022, with a total
volume of 21.1 mEUR. Days sales outstanding were
notably reduced compared to 2021 across several
markets.
Trade payables decreased by 22.7 mEUR and came
to 113.2 mEUR in correlation with the inventory
development as described above.
Other receivables increased by 7.3 mEUR of
which approximately 5 mEUR was related to a
remaining insurance recovery receivable for the
estimated damaged inventory and other damaged
assets in the US Distribution Center. During 2022
approximately 21 mEUR has been received in
insurance recovery. Please also see Note 8.4
contingent liabilities, securities and contractual
obligations.
Other current liabilities decreased by 5.3 mEUR
primarily related to repayments of government
COVID relief packages during 2022 and lower
employee related payables.
The 12-month average working capital ratio came
to 21.6% at the end of 2022. The increase of 6.2
percentage points compared to 2021 was driven by
the higher average inventory level, only partly offset
by higher revenue.
Capital employed and RoCE
As of December 31, 2022, capital employed
amounted to 585.4 mEUR, an increase of 39.2
mEUR compared to 2021. The increase in capital
employed was to a significant extent driven by the
above-mentioned development in working capital.
The return on capital employed was 13.4%, 2.4
percentage points lower than 2021 driven by the
decrease in operating profit.
Cash flow
Cash flow from operating activities before financial
items and income taxes amounted to 103.6 mEUR,
12.3 mEUR higher than in 2021. The development
was driven by a combination of lower operating
profit offset by cash inflow from changes in working
capital, which was positively impacted by the non-
recourse factoring program. Net financial expenses
and income tax paid amounted to a net outflow
of 21.6 mEUR, 5.0 mEUR higher than 2021, mainly
influenced by higher taxes paid. Overall, total cash
flow from operating activities in 2022 was 7.3 mEUR
higher than in 2021 and came to 82.0 mEUR.
Cash flow from investing activities for 2022
amounted to a net cash outflow of 27.5 mEUR,
corresponding to an increase of 11.3 mEUR
compared to 2021. The increase was due to
investments for the US Distribution Center facility
rebuild, as well as strategic R&D investments and
the acquisition of additional 5% financial asset from
company M2H S.A.
Free cash flow decreased by 4.0 mEUR compared to
2021 and amounted to 54.5 mEUR.
Equity
Equity was 260.7 mEUR at the end of 2022 against
207.7 mEUR at the end of 2021. The increase came
primarily from profit for the year. Foreign exchange
rate effects and hedge value adjustments also had a
positive impact.
Net interest-bearing debt
At the end of 2022, total net interest-bearing debt
was 324.7 mEUR, down by 13.8 mEUR compared to
2021. The reduction was a result of a solid operating
profit, starting a non-recourse factoring program
and partly offset by increased working capital.
The financial gearing at the end of the year was 2.3
unchanged from the end of 2021.
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Financial review
Performance in Q4 2022
In Q4 2022, revenue amounted to 270.3 mEUR
corresponding to reported growth of 3.7% compared
to revenue in Q4 2021 of 260.6 mEUR. Organic
growth was 2.3%, with a positive foreign exchange
effect of 2.5%. The negative impact on reported
growth was driven by discontinued activities,
predominantly the liquidation of Nilfisk Russia. The
positive demand seen in previous quarters for our
professional products continued through to the
year-end seeing a strong finish to 2022.
In Europe, organic growth was 5.5%, driven by a
strong performance within branded professional
in Europe South and continued good demand in
Europe North. Europe Central saw a softening of
demand alongside supply constraints impacting
revenue. In Americas, organic growth was 9.4%,
driven by growth across all markets with the
strongest performance in Canada and LATAM. In
APAC, organic growth was 11.9%, supported across
all regions except for China, where we continued to
see negative impacts from COVID actions.
The branded professional business delivered
organic growth of 7.5% compared to Q4 2021, with
growth across all product segments except for
pressure washers.
The Consumer business recorded organic growth
of -23.1%, driven by the reduced consumer demand.
For The Private label business, organic growth
declined by 41.4% following decreased demand
from key customers.
Gross profit was 108.1 mEUR in 2022, an increase
of 6.9 mEUR from 2021. The gross margin was
40.0%, 1.2 percentage points higher than in Q4
2021. The increase in margin was driven by the
executed price increases offsetting the raw material
increases, alongside freight rates starting to reduce
versus the prior year.
Overhead costs decreased by 1.0 mEUR compared
to Q4 2021 and amounted to 84.7 mEUR,
corresponding to an overhead cost ratio of 31.3%,
1.6 percentage points lower than Q4 2021. The cost
development was supported by continued cost
management.
EBITDA before special items came to 39.5 mEUR,
which was 8.0 mEUR higher than Q4 2021. The
increase was due to higher revenue and gross
margin, as well as strong cost management. As a
result, the EBITDA margin before special items was
14.6%.
EBITDA came to 38.7 mEUR, corresponding to an
EBITDA margin of 14.3%.
EUR million Q4 2022 Q4 2021
Revenue 270.3 260.6
Gross Profit 108.1 101.2
Overhead costs 84.7 85.7
EBITDA before special items 39.5 31.5
Profit for the period 11.8 11.5
Financial ratios:
Organic growth
2.3% 16.7%
Gross margin 40.0% 38.8%
EBITDA margin before special
items 14.6% 12.1%
Overhead costs ratio 31.3% 32.9%
CAPEX ratio 3.3% 2.5%
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Q4 Performance
Quarterly
financial
highlights
Please find definitions in note 8.6.
EUR million Q4 2022 Q3 2022 Q2 2022 Q1 2022 Q4 2021
Income statement
Revenue
270.3 263.0 272.0 264.2 260.6
EBITDA before special items
39.5 29.2 34.5 37.6 31.5
EBITDA
38.7 26.3 33.3 35.0 31.5
Operating profit before special items
23.4 13.8 19.8 22.5 15.5
Operating profit
22.5 10.8 18.6 17.7 15.5
Special items, net
-0.9 -3.0 -1.2 -4.8 -
Financial items, net
-7.4 -0.9 -5.5 -3.2 -3.2
Profit for the period
11.8 7.6 10.4 10.8 11.5
Cash flow
Cash flow from operating activities
57.1 24.8 18.4 -18.3 20.9
Cash flow from investing activities
-8.7 -7.1 -7.3 -4.4 -5.4
— hereof investments in property, plant and equipment
-3.9 -2.2 -2.9 -1.5 -2.2
— hereof investments in intangible assets
-5.1 -3.6 -3.5 -3.7 -4.2
Free cash flow excluding acquisitions and divestments
48.4 17.7 11.1 -22.7 15.5
Statement of financial position
Total assets
863.4 922.2 910.8 896.1 841.2
Group equity
260.7 266.8 245.4 224.8 207.7
Working capital
202.1 250.4 244.1 226.6 175.7
Net interest-bearing debt
324.7 365.1 367.5 372.4 338.5
Capital employed
585.4 631.9 612.9 597.2 546.2
Financial ratios and employees
Organic growth 2.3% 5.4% 2.8% 9.3% 16.7%
Organic growth Nilfisk branded professional business
7.5% 10.8% 5.2% 11.2% 16.6%
Gross margin
40.0% 39.1% 38.8% 40.0% 38.8%
EBITDA margin before special items
14.6% 11.1% 12.7% 14.2% 12.1%
EBITDA margin
14.3% 10.0% 12.2% 13.2% 12.1%
Operating profit margin before special items
8.7% 5.2% 7.3% 8.5% 5.9%
Operating profit margin
8.3% 4.1% 6.8% 6.7% 5.9%
Financial gearing
2.3 2.7 2.7 2.6 2.3
Overhead costs ratio
31.3% 33.9% 31.5% 31.5% 32.9%
CAPEX ratio
3.3% 2.2% 2.4% 2.0% 2.5%
Working capital ratio
21.6% 20.4% 18.6% 16.7% 15.4%
Return on Capital Employed (RoCE)
13.4% 12.2% 13.8% 15.5% 15.8%
Basic earnings per share (EUR)
0.44 0.28 0.38 0.40 0.42
Diluted earnings per share (EUR)
0.44 0.28 0.38 0.40 0.42
Number of full-time equivalents, end of period
4,655 4,737 4,799 4,930 4,887
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Quarterly financial highlights
ESG performance
Climate and
Environment
Data indicator Unit Assured
1
2022 2021 2020 2019 Comments GRI guidance
Environmental data
GHG emissions
Scope 1 tons CO
2
eq 15,608 14,756 13,353 14,231 Total absolute scope 1 and 2 GHG emissions decreased by 10% compared to base year 2019. Fleet
emissions increased due to additional vehicles and increased mileage in 2022, while site emissions
decreased driven by energy efficiency activities, Energy Attribute Certificates (EACs), and reduced
production output. Changes from 2021: the list of sites included in the updated calculations has been updated
based on a revised materiality assessment. Fleet emissions have been recalculated based on additional
data quality checks identifying outliers as well as improved estimation of missing data. The scope 1 and 2
emissions reported in Nilfisk’s CSR Report 2021 (24,081 tons CO
2
eq in 2019, 18,349 tons CO
2
eq in 2020 and
22,626 tons CO
2
eq in 2021) have been restated.
GRI 305:
Emissions
Fleet tons CO
2
eq 10,839 9,030 9,172 9,360
Natural gas tons CO
2
eq 4,414 5,330 3,823 4,291
Other fuels tons CO
2
eq 355 396 358 580
Scope 2 tons CO
2
eq 4,708 7,548 7,014 8,405
Electric power tons CO
2
eq 4,575 7,402 6,731 7,963
District heating tons CO
2
eq 133 146 283 442
Total scope 1 and 2 tons CO
2
eq 20,316 22,304 20,367 22,636
Scope 3 – Use of sold products kg CO
2
eq/
EUR gross
profit
4.57 5.11 - - Absolute GHG emissions decreased while gross profit increased in 2022. This resulted in a reduction in
scope 3 emission intensity by 11% compared to base year 2021. Changes from 2021: emission factors have
been changed to account for life cycle emissions of energy sources. Extrapolation of data has been reduced
from 20% of product portfolio to 2.6% of product portfolio based on revenue following data collection on
product-specific technical data. The unit used in Nilfisk’s CSR Report 2021 has been corrected. The 2021 value
of the indicator has been restated from 4.4 to 5.11 kg CO
2
eq/EUR gross profit.
Energy consumption
Total amount of energy MWh 92,816 93,085 87,867 93,232 Total energy consumption decreased in 2022 driven by energy efficiency projects, implemented since 2021,
in addition to reduced production output.
GRI 302:
Energy
Natural gas MWh 24,177 29,095 20,787 23,337
Other fuels (incl. fleet) MWh 53,967 46,543 48,044 47,971
District heating MWh 2,104 2,387 5,060 5,738
Electricity MWh 12,569 15,060 13,976 16,186
Renewable electricity from Energy Attribute
Certificates
% 28% 0% 0% 0% 28% of Nilfisk’s total electricity consumption was covered by EACs in 2022.
Waste
Total waste generated tons 1,559 1,733 - - Non-hazardous waste reduced by 10% mainly driven by reductions at Nilfisk’s largest manufacturing site in
Hungary. Hazardous waste increased, driven by extraordinary waste clean-up after several years of storage.
Changes from 2021: Waste volumes have been recalculated due to correction of errors in data units as well as
new waste data added from the largest manufacturing facility in the US. Total 2021 waste volumes have been
restated from 1,218,982 tons to 1,733 tons.
GRI 306:
Waste
Total non-hazardous waste tons 1,543 1,722 - -
Total hazardous waste tons 16 12 - -
Water
Water consumption m
3
79,773 91,671 109,942 124,936 Water consumption decreased in 2022 mainly driven by Nilfisk’s manufacturing site in China consuming less
water for plastic molding. Changes from 2021: Because of new sites materiality assessment water consump-
tion has been recalculated to reflect the water usage of the updated sites’ list. Reported water consumption
volumes in Nilfisk’s CSR Report 2021 were 122,909 m
3
in 2019, 108,465 m
3
in 2020 and 106,400 m
3
in 2021.
GRI 303:
Water and
Effluents
Water recycled m
3
12,926 12,235 17,995 36,575 Recycled water remained at 2021 level.
ISO certifications
Number ISO 14001-certified sites number 9 7 7 7 Two new sites were ISO 14001-certified, a Swedish sales office and a US manufacturing site, in addition to
recertification of 7 sites.
Number ISO 9001-certified sites number 13 11 11 12 Two new sites were ISO 9001-certified, a Swedish sales office and a workshop in Belgium, in addition to
recertification of 11 sites.
1
The data indicator has been subject for limited assurance, covering the columns ‘unit’ and ‘2022’. Information presented in
columns ‘2021’, ‘2020’, ‘2019’, ‘Comments’ and ‘GRI guidance’ was not included in the scope of the limited assurance.
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ESG performance
Workplace
Society
Data indicator Unit Assured
1
2022 2021 2020 2019 Comments GRI guidance
Social data
Number of employees (FTEs) number 4,655 4,887 4,339 4,886 Total number of full-time equivalents (FTEs) end of period decreased by 5%.
Blue collar workers % FTE 27% 30% 28% 29% Number of white collar workers increased due to additional hires while the number of blue collar workers
decreased due to lower production output at the manufacturing facilities.
White collar workers % FTE 73% 70% 72% 71%
Employee turnover
(based on headcount)
% 23% 21% 20% 24% Increase in employee turnover was driven by general labor market conditions. GRI 401:
Employment
Gender diversity in the company
(% women, based on headcount)
% 29% 29% 27% 27% The share of women in the company remained stable, while the share of women in senior management
positions increased to 19%. One additional female EVP joined Nilfisk Leadership Team in 2022, increasing
the share of women to 20%.
GRI 405:
Diversity
and Equal
Opportunity
Gender diversity in senior management
(% women, based on headcount)
%
19% 14% - -
Gender diversity in Nilfisk Leadership Team
(% women, based on headcount)
% 20% 12.5% 25% 17%
Gender diversity in the Board of Directors
(% women, based on headcount)
% 14% 14% 12% 14% No changes in the Board of Directors’ gender ratio. The 2024 gender diversity target for the Board is 25%.
Unadjusted gender pay gap (headcount) % 19% - - - 2022 is the first year Nilfisk discloses the unadjusted gender pay gap.
CEO pay ratio
(based on FTE)
ratio 36.4 38.6 - - CEO pay ratio decreased, driven by an increase in average salary per employee.
Engagement survey participation rate % 88% 90% 92% 92% There was a decrease in employee survey participation although it remained above industry benchmark.
Employee engagement score score 8.1/10 8.1/10 8.0/10 7.8/10 Employee engagement score remained stable.
Fatalities (headcount) number 0 0 0 0 There were no fatal accidents in 2022. Significant improvement in lost time injury frequency rate was
driven by a 47% decrease in the number of lost time injuries. The improvement was due to successful
implementation of preventive actions. Change from 2021: the lost time injury frequency rate replaces the
injury frequency rate reported in the past years.
GRI 403:
Occupational
Health and
Safety
Lost time injury (LTI) frequency rate rate 5.1 9.6 - -
Lost time injury (LTI) severity rate rate 0.06 - - -
Data indicator Unit Assured
1
2022 2021 2020 2019 Comments GRI guidance
Governance data
EcoVadis rating rate Gold Silver Nilfisk obtained the Gold rating by raising its score by 3 points. The improvement is mainly driven by
environmental efforts.
EcoVadis score score
68/100 65/100
Share of supplier spend who align with the
UNGC 10 principles
% 83% 86% 93% 93% Share of suppliers’ spend who align with the UNGC principles decreased, mainly driven by a change in
spend distribution among suppliers in APAC. Change from 2021: Correction of wrongly titled ‘Number of
suppliers signed the UNGC’.
GRI 2:
General
Disclosure
Number of audits of suppliers number 25 34 63 10 Number of supplier audits decreased due to COVID-19 related travel restrictions. In the meantime, online
audits were conducted of some high-risk entities.
Cumulative number of suppliers covered by
CSR assessments*
number 156 129 14 - Number of suppliers covered by CSR assessments continued to increase. Changes from 2021: Correction
of identified error. Reported numbers in Nilfisk’s CSR Report 2021 were 18 in 2020 and 153 in 2021.
Number of whistleblower cases submitted
through whistleblower function
number 1 2 6 9 Number of whistleblower cases submitted through the whistleblower system decreased, driven by Nilfisk
employees using other channels. In 2022, 9 reports were received through internal channels.
Whistleblower cases admissible number 1 2 2 1
Whistleblower cases resolved number 0 2 6 9
1
The data indicator has been subject for limited assurance, covering the columns ‘unit’ and ‘2022’. Information presented
in columns ‘2021’, ‘2020’, ‘2019’, ‘Comments’ and ‘GRI guidance’ was not included in the scope of the limited assurance.
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ESG performance
Financial StatementsManagement Review
NILFISK ANNUAL REPORT 202241
Our resultsOur businessOur strategy2022 in brief Our governance
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
Corporate governance
Nilfisk’s governance structure consists of its
Shareholders, the Board of Directors, and the Nilfisk
Leadership Team.
Shareholders
The shareholders of Nilfisk Holding A/S exercise
their decision-making rights at general meetings.
At the Annual General Meeting, shareholders elect
board members and the independent auditor, and
they approve the Annual Report including company
financial results, remuneration of the Board of
Directors, discharge of liability for Management
and the Board of Directors, as well as any dividend
proposal or amendment to Nilfisk Holding A/S’
Articles of Association. Shareholders may include
additional topics on the agenda of the Annual
General Meeting in accordance with the company’s
articles of Association and the Danish Companies
Act.
The general meeting adopts decisions in
accordance with the general rules set out in the
Danish Companies Act.
The Board of Directors
The Board of Directors holds overall responsibility
for the management of Nilfisk and the company’s
strategic direction.
The Board of Directors consists of a total of eleven
members, seven members are elected by the
shareholders and four members are elected by the
employees.
All shareholder-elected members are up for election
every year at the Annual General Meeting. The
employee-elected members serve four-year terms.
The current employee-elects were elected in March
2022, and their terms will expire in 2026.
Among the shareholder-elected members are
one woman and six men. The employee-elected
members include one woman and three men.
Of the seven shareholder-elected members, two
live in Denmark, one lives in Sweden, one lives
in Norway, one lives in the US, one lives in Italy,
and one lives in Luxembourg. Four members are
considered independent and three are considered
non-independent.
The Board of Directors includes people with strong
international business experience in the areas of
industry, energy, high technology, finance, business
management and development. They are deemed
to possess the required expertise and seniority.
See pages 46-47 for particulars of Nilfisk’s Board of
Directors.
The Board of Directors has adopted an annual plan
ensuring that all relevant matters are addressed
throughout the year. A minimum of six ordinary
Board meetings are held annually.
Part of the Board’s responsibility is to ensure that
the company has a capital and share structure that
matches its strategic direction and the long-term
creation of value for the benefit of its shareholders.
Considerations on capital and share structure are
undertaken annually by the Board of Directors,
and in 2022 Nilfisk renewed its credit facility and
linked the new credit facility directly to Nilfisk’s
sustainability targets for scope 1, 2 and 3 CO
2
emissions, as validated by the Science Based
Targets initiative, EcoVadis rating as well as targets
for increased gender diversity. These targets will
in turn support the delivery of Business Plan 2026
and the company’s strategy towards long-term
sustainable growth, where a strong sustainability
focus is anchored in both Nilfisk’s value proposition
and strategic priorities. With this new credit facility
it was affirmed that Nilfisk’s capital and share
Audit Committee
Jutta af Rosenborg
(Chair)
Are Dragesund
Nomination Committee
René Svendsen-Tune
(Chair)
Peter Nilsson
Franck Falezan
Remuneration Committee
Peter Nilsson
(Chair)
Thomas Lau Schleicher
structure are appropriate for and supportive of the
company’s current strategic direction and initiatives.
Under the company’s Articles of Association, the
Board of Directors holds authorizations granted
by the shareholders to issue new shares and
convertible loans. The maximum aggregate
nominal share capital increase allowed under these
authorizations is 200 mDKK. However, in no event
can the issuance of new shares without preemptive
rights for existing shareholders exceed an aggregate
nominal share capital amount of 100 mDKK. These
authorizations are valid until March 24, 2027.
The Board of Directors also holds an authorization
from the shareholders to acquire treasury shares
up until and including March 22, 2023, up to an
aggregate nominal amount of 54,252,720 DKK,
corresponding to almost 10% of the company’s
current share capital. The company’s holding of
treasury shares at any time may not exceed 10% of
the company’s issued share capital. The purchase
price for the relevant shares may not deviate by
more than 10% from the price quoted on Nasdaq
Nordic at the time of purchase.
Board Committees
The Board of Directors has appointed three standing
committees: an Audit Committee, a Nomination
Committee, and a Remuneration Committee.
Additionally, the Chairmanship meets regularly with
the Executive Management of Nilfisk to discuss
relevant topics in between Board meetings.
All board committees report to the Board of
Directors, and senior representatives from Nilfisk
act as secretariat for the committees. The Audit
Committee and the Remuneration Committee
each has two members, whereas the Nomination
Committee has three members. The Board of
Directors considers this composition appropriate
Nilfisk Board
of Directors
Committees
NILFISK ANNUAL REPORT 202242
Shareholder information
Risk managementNilfisk Leadership TeamBoard of Directors
Our governanceFinancial Statements
Management Review Our resultsOur businessOur strategy2022 in brief
Corporate governance
to ensure efficient and focused committee work,
reporting, and decision-making within the Board of
Directors.
Audit Committee
In 2022, the Audit Committee consisted of two
members. The Audit Committee is appointed
for one year at a time. All members possess the
relevant financial expertise, and the chair of the
committee qualifies as being independent.
The principal duties are:
• To monitor the financial reporting process and
compliance with existing legislation, standards
and other regulations for listed companies relating
to presentation and publication of financial
reporting
• To monitor whether the company’s internal control
and risk management systems function efficiently
• To monitor the statutory audit of the annual
financial statements
• To monitor the independence of auditors and their
supply of non-audit services to the Nilfisk Group
• To make recommendations to the Board of
Directors concerning the election of auditors
The work of the Audit Committee is described
in its charter available online at Nilfisk’s Investor
Relations site and is formalized in an annual plan
approved by the Board of Directors.
Internal control and risk management related to the
financial reporting process
Nilfisk has several policies and procedures in
specific areas of financial reporting, including the
Finance Manual, the Risk Management Policy, the
IT Security Policy, the Treasury Policy, the Insurance
Policy, the Tax Policy, and the Integrity Policy &
Business Code of Conduct. These policies and
procedures apply for all subsidiaries.
The internal control and risk management systems
for financial reporting are designed to ensure that
the financial reporting presents a true and fair view
of Nilfisk’s result and financial position and is in
compliance with applicable financial legislation
and accounting standards. The control and risk
management systems are designed to mitigate the
risks identified in the financial reporting process.
Internal controls related to the financial reporting
process are established to detect, mitigate, and
correct material misstatements in the financial
statements.
Risk assessment
The risks related to each accounting process and
line item in the financial statement are assessed
based on quantitative and qualitative factors.
The associated risks are identified based on the
evaluation of the likelihood of occurring and the
potential impact. The financial reporting control
framework covers all material subsidiaries. Please
refer to the Risk Management section on page 50.
Control activities
Nilfisk has implemented a formalized financial
reporting process for the strategy process, budget
and forecast process as well as for the monthly
reporting on actual performance. Financial
information reported is reviewed both by controllers
with regional or functional knowledge of the
individual companies/functions and by technical
accounting specialists.
The financial reporting is dependent on IT systems.
Any weaknesses in the system controls or IT
environment are compensated for by manual
controls to mitigate any significant risk related to
the financial reporting to an acceptable level.
A central controlling function conducts financial
compliance reviews throughout the organization
based on a defined review strategy and risk
assessment. The key controls implemented
based on the financial reporting framework are
systematically monitored and tested in conjunction
with controller visits performed by Nilfisk Group
Controlling. Key controls, including general IT
controls for subsidiaries considered relevant from a
risk or/and risk perspective, are tested at least once
every three years.
Remuneration Committee
The overall responsibility of the Remuneration
Committee is to oversee the remuneration of the
Board of Directors, the Executive Management
Board, and other members of the Nilfisk Leadership
Team to ensure that the company’s remuneration
practice is appropriate, balanced, and effective
to achieve growth, profitability, and shareholder
value. This responsibility includes establishing the
Remuneration Policy for the Board of Directors
and the Executive Management Board, making
proposals on changes to the Remuneration Policy,
and obtaining the approval of the Board of Directors
prior to seeking shareholders’ approval at the
Annual General Meeting.
The Remuneration Committee also oversees the
company’s short-term and long-term incentive
programs, including awards, target-setting, and
a review of target achievements every year. The
Remuneration Committee reports to the Board of
Directors at all regular board meetings to ensure
efficient decision-making.
Main activities in 2022
In 2022 the main activities of the Remuneration
Committee have been:
• Redefining the annual bonus plan for the year to
make it more focused and simpler
• Setting targets for the performance share
program this year
• Evaluating and adjusting the current performance
share program to align with market practice and
shareholder value creation
• Reviewing achievement against targets under
the company’s annual bonus plan and the
performance share program
• Conducting a benchmark survey of the pay levels
among the wider workforce of Nilfisk
• Completing a review of the Remuneration Policy
to ensure it continues to support the realization
of Nilfisk’s strategy as well as recognizes the
changes in the governance environment in
accordance with the Danish Companies Act and
the amended EU Directive on the encouragement
of long-term shareholder engagement
• Preparing, drafting, and approving a new
Remuneration Policy, which was adopted at
the 2022 Annual General Meeting, to align
with international practices on the terms and
conditions for indemnity of the Board of Directors
and Executive Management Board in relation to
situations where the Directors & Officers (D&O)
insurance coverage would be insufficient
Nomination Committee
The purpose of the Nomination Committee is to
define and assess the qualifications required of the
Board of Directors, the Group CEO, and the Group
CFO, to initiate an annual self-assessment within
the Board of Directors, and to exercise grandfather
rights with respect to members of the Nilfisk
Leadership Team.
Self-assessments
The purpose of the annual self-assessment is to
evaluate the performance and expertise required
within the Board of Directors, and to identify future
areas of focus.
NILFISK ANNUAL REPORT 202243
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Corporate governance
Every third year the Board of Directors utilizes
a professional consultant to assist with this
assessment. The next self-assessment with an
external consultant support is planned for 2023.
Conclusions from the 2022 board self-assessment
conducted in the last quarter of 2022 were that the
Board has the necessary and relevant competencies
and experience but could benefit from additional
industrial competencies. Board meetings could be
scheduled further ahead to ensure participation,
and the length of Board meetings should also
be considered when scheduling Board meetings
to facilitate deep discussions and deepening
the common understanding of the business, so
discussions are based on the same starting point.
The Board of Directors also performs an annual
assessment of the Group CEO and Group CFO
covering two main areas: the interaction between
these executives and the Board of Directors, and
the expertise of these executives. The assessment
takes the form of a general discussion by the Board
of Directors, after which the assessment findings
are communicated by the Chair to the Group CEO
and Group CFO.
The Chair will share the key messages from the
Board of Directors’ self-assessment at the Annual
General Meeting.
The Nilfisk Leadership Team
The day-to-day responsibility for Nilfisk’s
management lies with the Nilfisk Leadership Team,
consisting of eight members counting the Group
CEO and seven direct reports. The Nilfisk Leadership
Team is responsible for the conduct of business,
all operational matters, organization, allocation of
resources, establishing and implementing strategies
and policies, direction-setting, and timely reporting
of information to the Board of Directors. See pages
48-49 for particulars of the Nilfisk Leadership Team.
Target figure for the under-represented gender
Nilfisk seeks to provide equal opportunities for all
genders, and gender is in focus when assessing
qualifications and experience of Board candidates.
While Nilfisk believes the current Board of Directors
has an optimal composition based on qualifications,
the target figure of the under-represented gender,
guided by section 99b of the Danish Financial
Statements Act, is consistently monitored to ensure
it is realistic and ambitious. A new Nilfisk target
figure for the under-represented gender among
shareholder-elected Board members of minimum
25% was set in 2021 to be achieved by no later than
2024.
Nilfisk’s focus on diversity and inclusion is
described in our CSR Report, which includes the
UN Global Compact Communication on Progress
report and can be found at Nilfisk’s website:
https://www.nilfisk.com/global/about-nilfisk/
corporate-social-responsibility/
Corporate governance recommendations
As a listed company on Nasdaq Nordic, Nilfisk is
subject to Nasdaq Nordic’s rules governing share
issuers, and by that also the corporate governance
recommendations issued by the Danish Committee
on Corporate Governance which can be found at
https://corporategovernance.dk.
Nilfisk fulfils its obligations with respect to the
corporate governance recommendations by
complying with all recommendations. More details
can be found in Nilfisk’s annual reporting on the
corporate governance recommendations available
at Nilfisk’s Investor Relations site https://nilfisk.
NILFISK ANNUAL REPORT 202244
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Risk managementNilfisk Leadership TeamBoard of Directors
Our governanceFinancial Statements
Management Review Our resultsOur businessOur strategy2022 in brief
Corporate governance
Board of Directors - 2022 Attendance overview
Board of Directors meetings Audit Committee Remuneration Committee Nomination Committee
Number of meetings
9 5 4 4
Peter Nilsson
1
René Svendsen-Tune
Jens Due Olsen
2
Richard Bisson
Are Dragesund
Franck Falezan
Jutta af Rosenborg
3
Thomas Lau Schleicher
Gerner Raj Andersen
Claus Dalmose
4
Nadia Roya Damiri
4
Marcus Faber Kappendrup
4
Yvonne Markussen
5
Thorkil Vinum
5
1
Elected for the Board of Directors on March 25, 2022. Chair of the Remuneration Committee and member of the Nomination Committee since March 25, 2022.
2
Member and Chair of the Board of Directors until March 25, 2022.
3
Member and Chair of the Remuneration Committee until March 25, 2022.
4
Member of the Board of Directors since March 25, 2022.
5
Member of the Board of Directors until March 25, 2022.
NILFISK ANNUAL REPORT 202245
Shareholder information
Risk managementNilfisk Leadership TeamBoard of Directors
Our governanceFinancial Statements
Management Review Our resultsOur businessOur strategy2022 in brief
Corporate governance
Board of Directors
Peter Nilsson
Chair, Born 1962
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 March 2022 October 2017 March 2019 June 2020 June 2020 October 2017
Expiry of current term March 2023 March 2023 March 2023 March 2023 March 2023 March 2023
Core competencies • Executive management
• Management of listed companies
• Application of business models and
value chains, including service and
aftermarket
• International management
• Management of listed companies
• Leading 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 • Nomination Committee
• Remuneration Committee
• Nomination Committee • N/A • Audit Committee • Nomination Committee • Audit Committee
Selected positions and
directorships
• Chair of the board of directors of
Lindab Group
• Deputy chair of Creaspac AB
• Deputy chairman of the board of
directors of NKT A/S
• Chairman of the board of directors
of Stokke A/S
• Managing Partner of RBI Holdings • Co-Head Ferd Capital, Ferd AS
• Member of the board of directors
of Mestergruppen A/S, Norkart AS
and Brav AS
• Founder and Managing Partner at
PrimeStone
• Member of the board of directors
of JPMorgan European Growth
& Income plc, BBGI Global
Infrastructure S.A., RIT Capital
Partners plc
Education • MSc in Business and 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 2022
(end of 2021 in brackets)
27,104 (19,104) 4,000 (4,000) 0 (0) 0 (0) 0 (0) 0 (0)
NILFISK ANNUAL REPORT 202246
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Risk managementNilfisk Leadership TeamCorporate governance
Our governanceFinancial Statements
Management Review Our resultsOur businessOur strategy2022 in brief
Board of Directors
Thomas Lau Schleicher
Member, Born 1973
Non-independent
Gerner Raj Andersen
Employee representative
Born 1966
Claus Dalmose
Employee representative
Born 1967
Nadia Roya Damiri
Employee representative
Born 1978
Marcus Faber Kappendrup
Employee representative
Born 1976
First elected in March 2019 First elected in March 2018 March 2022 March 2022 March 2022
Expiry of current term March 2023 Expiry of current term March 2026 March 2026 March 2026 March 2026
Core competencies • Executive management. financial
reporting, risk
• Management, capital markets
expertise, strategy and M&A
Position at Nilfisk • Customer Care Representative
• Joined Nilfisk in 1990
• Director, Architecture &
Technology
• Joined Nilfisk in 2012
• Lead of Strategy & Transformation
Project Management in Group
Supply Chain
• Joined Nilfisk in 2015
• Enterprise Architect
• Joined Nilfisk in 1999
Committees • Remuneration Committee Committees N/A N/A N/A N/A
Selected positions and
directorships
• Member of the board of directors
of Adapture Renewables Inc, Falck
A/S, Topsøe Holding A/S, 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
• Daily Manager of the Occupational,
Health & Safety team at Nilfisk HQ
• Board Member in the staff
association at Nilfisk
• Voluntarily Team Leader in Save
the Children Denmark
• Board Member in the staff
association at Nilfisk
Education • MSc in Finance and Accounting Education • Secondary program • MSc in Electrical Engineering • MSc in Supply Chain Management,
with a minor in IT-based
modeling of Supply Chains and
implementation
• Degree in Business administration
Nilfisk shares end of 2022
(end of 2021 in brackets)
2,600 (2,600) Nilfisk shares end of 2022 (end
of 2021 in brackets)
210 (210) 30 (0) 145 (0) 32 (32)
Board of Directors
NILFISK ANNUAL REPORT 202247
Shareholder information
Risk managementNilfisk Leadership TeamCorporate governance
Our governanceFinancial Statements
Management Review Our resultsOur businessOur strategy2022 in brief
Board of Directors
Nilfisk Leadership Team
Torsten Türling
CEO
Member of the Executive Management Board
Reinhard Mayer
CFO
Member of the Executive Management Board
Siam Schmidt
Executive Vice President
HR
Anupam Bhargava
Executive Vice President
Innovation, Service & Customer Experience
Joined Nilfisk 2021 2021 2022 2022
Core competencies • International CEO experience in
both B2B and B2C markets
• International Finance
• IT
• Legal and Compliance
• Supply Chain
• M&A
• People, Organization and Culture development
• DE&I
• Environment, Health, and Safety (EHS)
• Mergers & Acquisitions
• Scaling service businesses
• Commercializing sustainable technology
• Business development and international
collaborations
• Change leadership and DE&I
Positions and directorships N/A N/A N/A • Member of the board of directors of Aquaporin
A/S
Previous positions • Linde Group
• Carrier Corporation
• Franke Group
• Frigoglass
• Ideal Standard
• Getinge AB
• Hansgrohe SE
• Novo Nordisk
• Leo Pharma A/S
• Royal Unibrew
• Grundfos
Education • MSc 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
• MSc of Arts in Communications and
Organizational Development from Aalborg
University
• BS in Mechanical Engineering from Syracuse
University and an MBA from Yale University
Nilfisk shares end of 2022
(end of 2021 in brackets)
16,980 (16,980) 13,869 (13,869) 2,000 (0) 6,000 (0)
NILFISK ANNUAL REPORT 202248
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Risk managementBoard of Directors Corporate governance
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Management Review Our resultsOur businessOur strategy2022 in brief
Nilfisk Leadership Team
Nilfisk Leadership Team
Hans Flemming Jensen
Executive Vice President
Specialty Business & Corporate Affairs
Petros Kapelles
Executive Vice President
COO
Camilla Ramby
Executive Vice President
Marketing, CSR & Consumer
Jamie O’Neill
Executive Vice President & General Manager
Americas region
Joined Nilfisk 2017 2023 2018 2012
Core competencies • General management & International business
leadership
• Business development, M&A, partnerships &
ventures
• Negotiation and international commercial
relationships
• Global corporate and commercial legal matters
• International experience in global operations
• E2E supply chain improvements, global
procurement development
• International Marketing, Sustainability & ESG
• International B2C Sales and business
development
• Global sales
• Commercial & Strategic Account development
• Customer relationship management & Enhanced
Customer experience
• Company culture
Positions and directorships • Board member, Thoro.ai (US) N/A N/A N/A
Previous positions • Kromann Reumert
• NKT Holding A/S
• Ideal Standard International
• Frigoglass
• Franke Kitchen Systems Group
• Danske Bank A/S
• TDC A/S
• Codan A/S
• Hilti
Education • Master of Laws, University
of Copenhagen
• MSc in Business Administration and a PDG in
Management from Nottingham Trent University
• MSc in International marketing & Management
• BA in Business
Nilfisk shares end of 2022
(end of 2021 in brackets)
735 (735) 0 (0) 1,155 (1,155) 0 (0)
NILFISK ANNUAL REPORT 202249
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Risk managementBoard of Directors Corporate governance
Our governanceFinancial Statements
Management Review Our resultsOur businessOur strategy2022 in brief
Nilfisk Leadership Team
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.
Commoditization and
competition
Economic and political
instability
Cost inflation, production
and supply chain risk
Cyber and IT security
Failure to innovate
Risk management
Risk areas
The following five 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):
NILFISK ANNUAL REPORT 202250
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Risk management
Risks Risk description Risk mitigation
Commoditization
and competition
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 resistant 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. If we fail to
adapt to changes in customer behavior and development of our products and services, our ability to
execute on our growth strategy will be impaired and the long-term financial results of the Group will be
impacted.
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.
Economic and
political instability
Adverse and instability in economic conditions including a risk of global economic conflicts may
negatively impact our financial position, increasing costs and decreasing demand for Nilfisk products,
affecting sales in a downward direction. At the same time, major social or political instability and changes
may disrupt the cleaning industry and our business.
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 establishing a certain degree
of flexible “plant-in-plant” production footprint.
Cost inflation,
production and
supply chain risk
Failures or delays may occur throughout 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 the 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. Increasing commodity prices negatively affect
the prices of raw materials, salary, and other inputs, thereby affecting the competitiveness of the business
and the delivery of results.
We focus on creating an optimal production and distribution footprint including several production
facilities and distribution centers, dual sourcing initiatives, optimization of supply chain processes
and modularization strategy with the aim of increasing scale advantages and reduction of production
complexity. We continuously monitor functionality of utilities and compliance with applicable regulations.
Global purchasing programs include fixed-price contracts and purchase orders and pricing agreements.
Price increases to customers. We continuously monitor development and react promptly as deemed
necessary and we evaluate opportunities to hedge raw materials which contain commodity components.
Cyber and IT
security
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. Further, Nilfisk is faced with the threat of security breaches (viruses, ransomware, etc.)
such as attempts of hacking our information technology systems.
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,
enhance IT service, and recovery business continuity plans.
Failure to
innovate
Technological developments and improvements are key to stay competitive in the markets. If one or more
of the Nilfisk competitors are able to develop and gain exclusive access to groundbreaking technologies,
this could make it difficult or increasingly costly for the Nilfisk Group to compete effectively on the
markets.
As a part of our strategy, we established a clear vision of making our customers’ businesses smarter and
more productive through intelligent cleaning solutions adding focus on opportunities within digitalization
and autonomy. We consistently monitor customer trends against preferred technologies and cooperate
with leading technology partners and Universities.
Description of the five risk areas identified as high-impact risks and related risk mitigation.
For further information of risks related to currency, interest rate, credit and liquidity, please refer to Note 6.3.
Nilfisk’s high-impact risk areas
NILFISK ANNUAL REPORT 202251
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Nilfisk Leadership TeamBoard of Directors Corporate governance
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Management Review Our resultsOur businessOur strategy2022 in brief
Risk management
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, 2021 215.00 DKK
Closing price at December 30, 2022 146.60 DKK
Change during the financial year -31.8%
Ownership structure
The company has approximately 12,000 registered
shareholders, who together hold 96.6% 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,
2022
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 4,598,860 17.0%
Institutional investors, Denmark 3,372,506 12.4%
Institutional investors. International 4,892,383 18.0%
Private investors 2,475,008 9.1%
Non-registered 885,135 3.3%
Dividend policy and dividend for 2022
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
payout 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
23, 2023, the Board of Directors will propose not to
distribute dividends for the financial year of 2022
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, corporate
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 2022, Nilfisk Holding A/S is covered by
four equity analysts. For a full list of analysts, please
visit https://investor.nilfisk.com.
Corporate calendar 2023
February 23 Annual Report 2023
March 23 Annual General Meeting
May 17 Q1 Interim Report 2023
August 18 Q2 Interim Report 2023
November 16 Q3 Interim Report 2023
NILFISK ANNUAL REPORT 202252
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Shareholder information
Consolidated financial statements 2022
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
2
2.1
2.2
2.3
2.4
2.5
2.6
2.7
3
3.1
3.2
3.3
Basis for reporting 59
Basis for preparation 59
Key accounting estimates and judgments 60
Implementation of new or changed accounting standards and 61
interpretations
Profit for the year 62
Segment information 64
Revenue 65
Research and development costs 66
Special items 67
Amortization, depreciation, and impairment 68
Financial items 68
Tax 69
Remuneration 71
Staff costs 72
Remuneration to the Board of Directors and the 72
Nilfisk Leadership Team
Long-term incentive programs 73
Capital employed 75
Capital employed 76
Impairment test 76
Intangible assets 79
Property, plant, and equipment 81
Right-of-use assets 83
Pension liabilities 85
Provisions 87
Working capital 88
Working capital 89
Inventories 90
Trade receivables 91
Capital structure 92
Net interest-bearing debt 93
Investments in associates 94
Financial risks and financial instruments 95
Share capital 102
Cash flow 103
Other non-cash adjustments 103
Other notes 104
Fees to auditors elected at the annual general meeting 104
Events after the balance sheet date 104
Related parties 104
Contingent liabilities, securities, and contractual 104
obligations
Group companies 105
Definitions 106
4
4.1
4.2
4.3
4.4
4.5
4.6
4.7
5
5.1
5.2
5.3
6
6.1
6.2
6.3
6.4
7
7.1
8
8.1
8.2
8.3
8.4
8.5
8.6
Income statement 55
Statement of comprehensive income 55
Statement of financial position 56
Cash flow statement 57
Statement of changes in equity 58
Financial Statements
Independent auditor’s report
NILFISK ANNUAL REPORT 202254
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 2022 2021
Revenue
2.1, 2.2 1,069.5 994.9
Cost of sales
2.5, 3 -647.5 -592.2
Gross profit
Research and development costs
2.3, 2.5, 3 -31.2 -29.1
Sales and distribution costs
2.5, 3 -243.5 -227.6
Administrative costs
2.5, 3 -70.1 -63.8
Other operating income 4.5 3.4
Other operating expenses -2.2 -1.5
Operating profit before special items
Special items, net
2.4, 2.5 -9.9 -4.4
Operating profit
Share of profit from associates
6.2 2.0 0.6
Financial income
2.6 0.5 1.6
Financial expenses
2.6 -17.5 -13.2
Profit before income taxes
Tax on profit for the year
2.7 -14.0 -17.7
Profit for the year
To be distributed as follows:
Profit attributable to shareholders of Nilfisk Holding A/S 40.6 51.0
Total
Earnings per share (based on 27,126,369 shares issued)
Basic earnings per share (EUR)
6.4 1.50 1.88
Diluted earnings per share (EUR)
EUR million Note 2022 2021
Profit for the year 40.6 51.0
Other comprehensive income
Items that may be reclassified to the income statement:
Exchange rate adjustments of subsidiaries 6.2 14.2
Value adjustment of hedging instruments:
6.3 12.3 5.6
6.3 -5.0 0.7
6.3 -0.5 -
Tax on value adjustment of hedging instruments
2.7 -1.5 -1.4
Items that may not be reclassified to the income statement:
Actuarial gains on defined benefit plans
4.6 0.8 1.9
Tax on actuarial gains on defined benefit plans
2.7 -0.1 -0.3
Total comprehensive income for the year
To be distributed as follows:
Comprehensive income attributable to shareholders of Nilfisk Holding A/S 52.8 71.7
Total
Financial Statements
Independent auditor’s report
NILFISK ANNUAL REPORT 202255
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 2022 2021
Assets
Goodwill 170.4 169.1
Trademarks 6.1 7.3
Customer related assets 3.8 5.2
Development projects completed 24.9 25.8
Software, know-how, patents, and competition clauses 18.6 23.5
Development projects, and software in progress 20.5 18.6
Total intangible assets
4.2, 4.3 244.3 249.5
Land and buildings 6.9 8.3
Plant and machinery 4.9 4.0
Tools and equipment 29.3 28.5
Assets under construction incl. prepayments 4.3 3.1
Right-of-use assets
4.5 57.4 56.2
Total property, plant, and equipment
4.2, 4.4
Investments in associates
6.2 33.2 29.0
Interest-bearing receivables
6.1 2.0 2.0
Other investments and receivables 12.0 3.3
Deferred tax
2.7 20.6 15.7
Total other non-current assets
Total non-current assets
4.1
Inventories
5.1, 5.2 220.2 220.1
Trade receivables
5.1, 5.3, 6.3 166.7 173.9
Interest-bearing receivables
6.1, 6.3 0.4 0.6
Income tax receivable
5.1 3.8 4.6
Other receivables
5.1, 6.3 34.7 27.4
Cash and cash equivalents 22.7 15.0
Total current assets
Total assets
EUR million Note 2022 2021
Equity and liabilities
Share capital
6.4 72.9 72.9
Reserves 14.8 3.3
Retained earnings 173.0 131.5
Total equity
Deferred tax
2.7, 4.1 7.3 5.9
Pension liabilities
4.1, 4.6 4.4 5.1
Provisions
4.1, 4.7 5.8 2.3
Interest-bearing loans and borrowings
6.1, 6.3 288.2 292.7
Lease liabilities
6.1, 6.3 36.9 35.3
Other liabilities
6.3 3.1 5.4
Total non-current liabilities
Interest-bearing loans and borrowings
6.1, 6.3 1.7 5.8
Lease liabilities
6.1, 6.3 23.0 22.3
Trade payables
5.1, 6.3 113.2 135.9
Income tax payable
5.1 10.8 7.5
Other liabilities
5.1, 6.3 96.2 101.5
Provisions
4.1, 4.7 12.1 13.8
Total current liabilities
Total liabilities 602.7
Total equity and liabilities
Financial Statements
Independent auditor’s report
NILFISK ANNUAL REPORT 202256
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 flow statement
for the years ended December 31
EUR million Note 2022 2021
Operating profit 69.6 79.7
Depreciation, amortization, and impairment
2.5 63.7 60.2
Other non-cash adjustments
7.1 -0.5 -6.0
Changes in working capital
5.1 -29.2 -42.6
Cash flow from operations before financial items and income taxes 103.6 91.3
Financial income received 6.4 2.3
Financial expenses paid -13.1 -10.0
Income tax paid -14.9 -8.9
Cash flow from operating activities
Purchase of property, plant, and equipment
4.4 -10.5 -5.8
Sale/disposal of property, plant, and equipment 0.5 0.1
Purchase of intangible assets
4.3 -15.9 -11.7
Purchase of financial assets -3.5 -0.1
Disposal of financial assets 0.6 -
Dividends received from associates
6.2 1.3 1.3
Cash flow from investing activities
-27.5 -16.2
Free cash flow 54.5 58.5
Changes in current interest-bearing receivables 0.1 1.0
Changes in current interest-bearing loans and borrowings -5.2 -102.1
Changes in non-current interest-bearing loans and borrowings -16.1 69.1
Payment of lease liabilities -25.2 -24.4
Cash flow from financing activities
6.1 -46.4 -56.4
Net cash flow for the year 8.1 2.1
Cash and cash equivalents, January 1 15.0 13.1
Exchange rate adjustments -0.4 -0.2
Net cash flow for the year 8.1 2.1
Cash and cash equivalents, December 31
Financial Statements
Independent auditor’s report
NILFISK ANNUAL REPORT 202257
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
2022 2021
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
Other comprehensive income
Exchange rate adjustments - 6.2 - - 6.2 - 14.2 - - 14.2
Value adjustment of hedging instruments:
Value adjustment for the year - - 12.3 - 12.3 - - 5.6 - 5.6
Transferred to cost of sales - - -5.0 - -5.0 - - 0.7 - 0.7
Transferred to inventory - - -0.5 - -0.5 - - - - -
Actuarial gains on defined benefit plans - - - 0.8 0.8 - - - 1.9 1.9
Tax on actuarial gains on defined benefit plans - - - -0.1 -0.1 - - - -0.3 -0.3
Tax on value adjustment of hedging instruments - - -1.5 - -1.5 - - -1.4 - -1.4
Total other comprehensive income - 6.2 5.3 0.7 12.2 - 14.2 4.9 1.6 20.7
Profit for the year - - - 40.6 40.6 - - - 51.0 51.0
Comprehensive income for the year
Share option program - - - 0.2 0.2 - - - 1.2 1.2
Total changes in equity
Equity, December 31
Statement of changes in equity
for the years ended December 31
Financial Statements
Independent auditor’s report
NILFISK ANNUAL REPORT 202258
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
NILFISK ANNUAL REPORT 202259
Consolidated financial statements Parent financial statements Management’s statement 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
Financial Statements
Management Review
1. Basis for reporting
2. Profit for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Cash flow
8. Other notes
Note Key accounting estimates and judgments
Estimate/
judgment
Impact of accounting
estimates and
judgments
2.4 Special items Determine the classification of special items Judgment Medium
2.7 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 defined benefit plans based on actuarial assumptions Estimate Low
4.7 Provisions Estimate the value of provisions Estimate Low
5.2 Inventories Determine the allocation of production overhead costs Judgment Low
Inventories Estimate the value of expected write-down Estimate Low
5.3 Trade receivables Estimate the value of expected credit losses Estimate Low
Key accounting estimates and judgments
1.1 Basis for preparation – continued
NILFISK ANNUAL REPORT 202260
Consolidated financial statements Parent financial statements Management’s statement 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
Financial Statements
Management Review
1. Basis for reporting
2. Profit for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Cash flow
8. Other notes
1.2 Key accounting estimates and
judgments – continued
NILFISK ANNUAL REPORT 202261
Consolidated financial statements Parent financial statements Management’s statement 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
Financial Statements
Management Review
1. Basis for reporting
2. Profit for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Cash flow
8. Other notes
NILFISK ANNUAL REPORT 202262
Consolidated financial statements Parent financial statements Management’s statement 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
Financial Statements
Management Review
1. Basis for reporting
2. Profit for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Cash flow
8. Other notes
2. Profit for the year – continued
NILFISK ANNUAL REPORT 202263
Consolidated financial statements Parent financial statements Management’s statement 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
Financial Statements
Management Review
1. Basis for reporting
2. Profit for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Cash flow
8. Other notes
NILFISK ANNUAL REPORT 202264
Consolidated financial statements Parent financial statements Management’s statement 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
Financial Statements
Management Review
1. Basis for reporting
2. Profit for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Cash flow
8. Other notes
Floorcare
1
NILFISK ANNUAL REPORT 202265
Consolidated financial statements Parent financial statements Management’s statement 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
Financial Statements
Management Review
1. Basis for reporting
2. Profit for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Cash flow
8. Other notes
2.2 Revenue – continued
NILFISK ANNUAL REPORT 202266
Consolidated financial statements Parent financial statements Management’s statement 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
Financial Statements
Management Review
1. Basis for reporting
2. Profit for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Cash flow
8. Other notes
NILFISK ANNUAL REPORT 202267
Consolidated financial statements Parent financial statements Management’s statement 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
Financial Statements
Management Review
1. Basis for reporting
2. Profit for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Cash flow
8. Other notes
NILFISK ANNUAL REPORT 202268
Consolidated financial statements Parent financial statements Management’s statement 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
Financial Statements
Management Review
1. Basis for reporting
2. Profit for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Cash flow
8. Other notes
NILFISK ANNUAL REPORT 202269
Consolidated financial statements Parent financial statements Management’s statement 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
Financial Statements
Management Review
1. Basis for reporting
2. Profit for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Cash flow
8. Other notes
2.7 Tax – continued
NILFISK ANNUAL REPORT 202270
Consolidated financial statements Parent financial statements Management’s statement 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
Financial Statements
Management Review
1. Basis for reporting
2. Profit for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Cash flow
8. Other notes
NILFISK ANNUAL REPORT 202271
Consolidated financial statements Parent financial statements Management’s statement 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
Financial Statements
Management Review
1. Basis for reporting
2. Profit for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Cash flow
8. Other notes
NILFISK ANNUAL REPORT 202272
Consolidated financial statements Parent financial statements Management’s statement 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
Financial Statements
Management Review
1. Basis for reporting
2. Profit for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Cash flow
8. Other notes
NILFISK ANNUAL REPORT 202273
Consolidated financial statements Parent financial statements Management’s statement 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
Financial Statements
Management Review
1. Basis for reporting
2. Profit for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Cash flow
8. Other notes
3.3 Long-term incentive programs – continued
NILFISK ANNUAL REPORT 202274
Consolidated financial statements Parent financial statements Management’s statement 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
Financial Statements
Management Review
1. Basis for reporting
2. Profit for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Cash flow
8. Other notes
NILFISK ANNUAL REPORT 202275
Consolidated financial statements Parent financial statements Management’s statement 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
Financial Statements
Management Review
1. Basis for reporting
2. Profit for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Cash flow
8. Other notes
NILFISK ANNUAL REPORT 202276
Consolidated financial statements Parent financial statements Management’s statement 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
Financial Statements
Management Review
1. Basis for reporting
2. Profit for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Cash flow
8. Other notes
4.2 Impairment test - continued
NILFISK ANNUAL REPORT 202277
Consolidated financial statements Parent financial statements Management’s statement 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
Financial Statements
Management Review
1. Basis for reporting
2. Profit for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Cash flow
8. Other notes
4.2 Impairment test - continued
NILFISK ANNUAL REPORT 202278
Consolidated financial statements Parent financial statements Management’s statement 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
Financial Statements
Management Review
1. Basis for reporting
2. Profit for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Cash flow
8. Other notes
1
NILFISK ANNUAL REPORT 202279
Consolidated financial statements Parent financial statements Management’s statement 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
Financial Statements
Management Review
1. Basis for reporting
2. Profit for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Cash flow
8. Other notes
4.3 Intangible assets – continued
NILFISK ANNUAL REPORT 202280
Consolidated financial statements Parent financial statements Management’s statement 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
Financial Statements
Management Review
1. Basis for reporting
2. Profit for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Cash flow
8. Other notes
NILFISK ANNUAL REPORT 202281
Consolidated financial statements Parent financial statements Management’s statement 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
Financial Statements
Management Review
1. Basis for reporting
2. Profit for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Cash flow
8. Other notes
4.4 Property, plant, and equipment – continued
NILFISK ANNUAL REPORT 202282
Consolidated financial statements Parent financial statements Management’s statement 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
Financial Statements
Management Review
1. Basis for reporting
2. Profit for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Cash flow
8. Other notes
NILFISK ANNUAL REPORT 202283
Consolidated financial statements Parent financial statements Management’s statement 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
Financial Statements
Management Review
1. Basis for reporting
2. Profit for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Cash flow
8. Other notes
4.5 Right-of-use assets – continued
NILFISK ANNUAL REPORT 202284
Consolidated financial statements Parent financial statements Management’s statement 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
Financial Statements
Management Review
1. Basis for reporting
2. Profit for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Cash flow
8. Other notes
NILFISK ANNUAL REPORT 202285
Consolidated financial statements Parent financial statements Management’s statement 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
Financial Statements
Management Review
1. Basis for reporting
2. Profit for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Cash flow
8. Other notes
4.6 Pension liabilities – continued
NILFISK ANNUAL REPORT 202286
Consolidated financial statements Parent financial statements Management’s statement 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
Financial Statements
Management Review
1. Basis for reporting
2. Profit for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Cash flow
8. Other notes
NILFISK ANNUAL REPORT 202287
Consolidated financial statements Parent financial statements Management’s statement 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
Financial Statements
Management Review
1. Basis for reporting
2. Profit for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Cash flow
8. Other notes
NILFISK ANNUAL REPORT 202288
Consolidated financial statements Parent financial statements Management’s statement 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
Financial Statements
Management Review
1. Basis for reporting
2. Profit for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Cash flow
8. Other notes
NILFISK ANNUAL REPORT 202289
Consolidated financial statements Parent financial statements Management’s statement 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
Financial Statements
Management Review
1. Basis for reporting
2. Profit for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Cash flow
8. Other notes
NILFISK ANNUAL REPORT 202290
Consolidated financial statements Parent financial statements Management’s statement 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
Financial Statements
Management Review
1. Basis for reporting
2. Profit for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Cash flow
8. Other notes
NILFISK ANNUAL REPORT 202291
Consolidated financial statements Parent financial statements Management’s statement 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
Financial Statements
Management Review
1. Basis for reporting
2. Profit for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Cash flow
8. Other notes
NILFISK ANNUAL REPORT 202292
Consolidated financial statements Parent financial statements Management’s statement 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
Financial Statements
Management Review
1. Basis for reporting
2. Profit for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Cash flow
8. Other notes
NILFISK ANNUAL REPORT 202293
Consolidated financial statements Parent financial statements Management’s statement 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
Financial Statements
Management Review
1. Basis for reporting
2. Profit for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Cash flow
8. Other notes
NILFISK ANNUAL REPORT 202294
Consolidated financial statements Parent financial statements Management’s statement 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
Financial Statements
Management Review
1. Basis for reporting
2. Profit for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Cash flow
8. Other notes
NILFISK ANNUAL REPORT 202295
Consolidated financial statements Parent financial statements Management’s statement 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
Financial Statements
Management Review
1. Basis for reporting
2. Profit for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Cash flow
8. Other notes
6.3 Financial risks and financial instruments – continued
NILFISK ANNUAL REPORT 202296
Consolidated financial statements Parent financial statements Management’s statement 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
Financial Statements
Management Review
1. Basis for reporting
2. Profit for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Cash flow
8. Other notes
The Chinese yuan traded offshore (CNH) is used as a proxy when hedging the CNY
6.3 Financial risks and financial instruments – continued
NILFISK ANNUAL REPORT 202297
Consolidated financial statements Parent financial statements Management’s statement 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
Financial Statements
Management Review
1. Basis for reporting
2. Profit for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Cash flow
8. Other notes
6.3 Financial risks and financial instruments – continued
NILFISK ANNUAL REPORT 202298
Consolidated financial statements Parent financial statements Management’s statement 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
Financial Statements
Management Review
1. Basis for reporting
2. Profit for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Cash flow
8. Other notes
6.3 Financial risks and financial instruments – continued
NILFISK ANNUAL REPORT 202299
Consolidated financial statements Parent financial statements Management’s statement 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
Financial Statements
Management Review
1. Basis for reporting
2. Profit for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Cash flow
8. Other notes
6.3 Financial risks and financial instruments – continued
NILFISK ANNUAL REPORT 2022100
Consolidated financial statements Parent financial statements Management’s statement 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
Financial Statements
Management Review
1. Basis for reporting
2. Profit for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Cash flow
8. Other notes
6.3 Financial risks and financial instruments – continued
NILFISK ANNUAL REPORT 2022101
Consolidated financial statements Parent financial statements Management’s statement 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
Financial Statements
Management Review
1. Basis for reporting
2. Profit for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Cash flow
8. Other notes
NILFISK ANNUAL REPORT 2022102
Consolidated financial statements Parent financial statements Management’s statement 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
Financial Statements
Management Review
1. Basis for reporting
2. Profit for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Cash flow
8. Other notes
NILFISK ANNUAL REPORT 2022103
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Financial Statements
Management Review
1. Basis for reporting
2. Profit for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Cash flow
8. Other notes
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Financial Statements
Management Review
1. Basis for reporting
2. Profit for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Cash flow
8. Other notes
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Financial Statements
Management Review
1. Basis for reporting
2. Profit for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Cash flow
8. Other notes
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Financial Statements
Management Review
1. Basis for reporting
2. Profit for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Cash flow
8. Other notes
8.6 Definitions – continued
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Financial Statements
Management Review
1. Basis for reporting
2. Profit for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Cash flow
8. Other notes
Parent company financial
statements 2022
1
2
3
4
5
6
7
8
9
10
11
12
Other income 111
Administrative costs 111
Fees to auditors elected at the annual general meeting 111
Financial items 111
Tax 111
Proposed distribution of loss for the year 111
Investments in subsidiaries 111
Prepayments 111
Related parties 112
Major shareholders 112
Contingent liabilities, securities, and contractual obligations 112
Events after the balance sheet date 112
Income statement 109
Balance sheet 109
Statement of changes in equity 110
Notes
Accounting policies 113
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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 2022 2021
Other income
1 3.7 3.4
Administrative costs
2, 3 -6.2 -9.0
Operating loss -2.5 -5.6
Financial expenses
4 -1.2 -1.1
Loss before income taxes -3.7 -6.7
Income taxes
5 1.4 1.5
Loss for the year -2.3 -5.2
To be distributed as follows:
Loss attributable to shareholders of Nilfisk Holding A/S
6 -2.3 -5.2
Total -2.3 -5.2
EUR million Note 2022 2021
Assets
Investments in subsidiaries
7 216.5 216.5
Deferred tax
5 1.6 1.5
Total non-current assets
218.1 218.0
Prepayments
8 0.6 1.0
Income tax receivable 0.3 0.4
Receivables from Group companies
9 18.5 11.9
Total current assets
19.4 13.3
Total assets
237.5 231.3
Equity and liabilities
Share capital 72.9 72.9
Retained earnings 12.0 14.4
Total equity 84.9 87.3
Interest-bearing loans and borrowings 32.8 20.3
Loans from Group companies
9 117.3 117.3
Other liabilities 0.1 0.4
Total non-current liabilities 150.2 138.0
Trade payables and other liabilities 2.4 6.0
Total current liabilities 2.4 6.0
Total liabilities
152.6
144.0
Total equity and liabilities
237.5
231.3
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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
2022
Equity, January 1 72.9 14.4 87.3
Loss for the year - -2.3 -2.3
Share option program - -0.1 -0.1
Total changes in equity - -2.4 -2.4
Equity, December 31 72.9 12.0 84.9
2021
Equity, January 1 72.9 19.0 91.9
Exchange rate adjustments -
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
The total number of shares is 27,126,369 with a nominal value of 20 DKK each. The share capital is unchanged
from 2021. All shares have been fully paid up and no shares carry special rights. Nilfisk Holding A/S’ Articles of
Association specifies no limits in respect of ownership or voting rights, and the Executive Management Board
is unaware of any agreements in this regard.
See Section 3 to the consolidated financial statements for a description of the share option programs to the
Executive Management Board. Changes in equity in 2022 are comprised of loss for the year. No dividends are
proposed for 2022.
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Note 1-8
Nilfisk Holding A/S is the parent company of the Nilfisk Group.
The parent company holds transactions related to holding of the
subsidiaries, please refer to the Management review.
1. Other income
Other income comprise management fee of 3.7 mEUR (2021: 3.4 mEUR)
received by Nilfisk Holding A/S.
2. Administrative costs
EUR million 2022 2021
Wages and salaries 2.5 6.6
Bonus 1.0 1.3
Long-term incentive programs¹ -0.1 0.6
Total staff costs 3.4 8.5
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 3.3 2.4
Remuneration to former members
of the Executive Management Board¹ -0.5 5.5
Other administrative costs 2.8 0.5
Total administrative costs 6.2 9.0
¹Includes reversal of the 2019 performance share program for former member of the Executive
Management Board in accordance with IFRS 2.
The Executive Management Board are granted short-term bonus
agreements contingent upon the fulfilment of the prerequisites, goals
and conditions defined in a bonus agreement and long-term incentive
programs. See Section 3 Remuneration of the consolidated financial
statements.
3. Fees to auditors elected
at the annual general meeting
EUR million 2022 2021
Deloitte:
Statutory audit 0.1 0.1
Other assurance services 0.1 -
Total 0.2 0.1
4. Financial items
EUR million 2022 2021
Interest to Group companies -1.2 -1.1
Total -1.2 -1.1
5. Tax
Tax recognized in the income statement
EUR million 2022 2021
Deferred tax 0.1 -1.5
Adjustment, prior years -1.5 -
Total -1.4 -1.5
Reported tax rate 38.0% 22.0%
Reconciliation of tax:
Calculated tax of 22.0% (2021: 22.0%)
on loss before income taxes -0.8 -1.5
Tax effect of:
Non-taxable income/non-deductible expenses 0.6 -
Tax assets valuation allowances -1.2 -
Total -1.4 -1.5
Deferred tax assets
EUR million 2022 2021
Deferred tax assets, January 1 1.5 0.1
Exchange rate adjustments - -0.1
Deferred tax recognized in the income statement 0.1 1.5
Deferred tax assets, December 31 1.6 1.5
6. Proposed distribution of loss for the year
EUR million 2022 2021
Suggested distribution of loss for the year:
Loss attributable to shareholders of Nilfisk Holding A/S -2.3 -5.2
Total -2.3 -5.2
7. Investments in subsidiaries
EUR million 2022 2021
Carrying amount, January 1 216.5 216.4
Exchange rate adjustments - 0.1
Carrying amount, December 31 216.5 216.5
8. Prepayments
EUR million 2022 2021
Prepayments 0.6 1.0
Total 0.6 1.0
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Management Review
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9. Related parties
Transactions with affiliated undertakings comprise the following:
EUR million 2022 2021
Non-current interest-bearing loan from Nilfisk A/S 117.3 117.3
Receivables from Group companies 18.5 11.9
Management fee of 3.7 mEUR is included in the 18.5 mEUR as a net
receivable (2021: 3.4 mEUR).
Other matters of interest in relation to related parties are disclosed in
Section 8 Other notes of the consolidated financial statements.
10. 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 4,598,860 17.0%
Note 9-12
11. Contingent liabilities, securities,
and contractual obligations
EUR million 2022 2021
Rental guarantees 6.5 6.7
Nilfisk Holding A/S has issued rental guarantees relating to rental
contracts in subsidiaries.
Nilfisk Holding A/S and all its Danish subsidiaries are subject to
mandatory joint taxation. As the ultimate parent company in the Nilfisk
Group, Nilfisk 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 profit. Tax payable and tax
receivable are stated under current assets/liabilities.
Nilfisk 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 Nilfisk Holding
A/S and NKT A/S respectively cannot exceed an amount corresponding
to the net value of the assets and liabilities. Nilfisk Holding A/S has
entered into an indemnification agreement with NKT A/S, under which
each party has a defined right of recourse with respect to any liabilities a
party may incur in respect of the other party under the joint and several
liability.
12. Events after the balance sheet date
No events have occurred in the period from the balance sheet date until
the presentation of the financial statements that materially affect the
assessment of the financial statements of Nilfisk Holding A/S.
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Accounting policies
The financial statements for the parent company are included in
this Annual Report in pursuance of the requirements of the Danish
Financial Statements Act.
The financial statements for the parent company are prepared in
accordance with the Danish Financial Statements Act for accounting
class D companies.
The financial 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 Nilfisk Group’s
main business activities are EUR denominated
Description of accounting policies
In relation to the accounting policies described for the financial
statements of the Nilfisk Group (see Note 1.1 to the consolidated
financial 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
Nilfisk Holding A/S and all its Danish subsidiaries are subject
to mandatory joint taxation. As the ultimate parent company in
the Nilfisk Group, Nilfisk 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 profit. 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 flow statement
The parent company has in accordance with the Danish Financial
Statements Act, Section 86 (4) not prepared separate cash flow
statements. Please refer to the consolidated cash flow statements.
For the following notes, see information in the consolidated financial
statements:
• Remuneration – see Section 3 Remuneration
• Share capital – see Note 6.4 Share Capital
Accounting policy
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Management Review
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Management’s statement
Executive Management Board
Board of Directors
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Financial Statements
Management Review
Opinion
Basis for opinion
Independent auditor’s report
Key audit matters
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Financial Statements
Management Review
Statement on the management review
Management’s responsibilities for the consolidated financial
Auditor’s responsibilities for the audit of the consolidated financial
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Financial Statements
Management Review
Report on compliance with the ESEF Regulation
Business Registration No 33 96 35 56
Identification No mne21358
Identification No mne45854
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Nilfisk’s Annual Report 2022 was published on February 23, 2023.
The report is also available at www.nilfisk.com .
Company reg. No. 38 99 88 70
Investor Relations contact IR@nilfisk.com