ANNUAL REPORT 2023
Steady progress on
strategic priorities
Nilfisk Holding A/S
Marmorvej 8
2100 Copenhagen Ø, Denmark
Company reg, No. 38 99 88 70
8%
35%
30%
4%
6%
14%
10%
6%
6%
59%
29%
57%
100+
Countries
Our products and services
are sold in more than 100
countries across the globe.
Founded in 1906
It was in 1906 that Peder Andersen Fisker
established Nilfisk, inspired by his love of
knowledge and ambition to build a company that
made the best electrical engines. Since then, we
have been committed to delivering innovative
cleaning solutions and growing our business to
lead the industry.
40+
Sales companies
We have sales companies
in more than 40 countries
around the world.
9
Manufacturing sites
Nilfisk relies on asset-light
assembly-focused production.
The main manufacturing
facilities are located in the US,
Mexico, Hungary, Italy, and
China.
5
R&D facilities
Product development for
most products is managed
from three competence
centers, one in each region.
7
Distribution facilities
Our distribution facilities are
located in Americas, Europe,
and Asia. We also provide
direct shipment from selected
manufacturing sites.
Global
presence
We are a
world-leading
global
provider of
professional
cleaning
products and
services
Share of revenue 2023 Share of revenue 2023 Share of revenue 2023
Revenue Regions Key markets
USA
Germany
France
Denmark
12.8%
EBITDA margin before special items
EBITDA margin before special items
realized in line with the latest outlook
announced on November 16, 2023.
4,700
Employees
Approximate number of FTEs
1,033.6 mEUR
Total revenue 2023
AT A GLANCE
United
Kingdom
Professional Business
Service Business
Specialty Business
Consumer Business
EMEA region
Americas region
APAC region
NILFISK ANNUAL REPORT 20232
Financial StatementsManagement Review
Consumer
37% 20% 11% 32%
Automotive
Healthcare
EducationAgriculture Contract
cleaners
Building &
Construction
Food & Beverage
Manufacturing Pharma
Warehousing &
Logistics
Offices & Public
buildings
Iron & Metal Retail Hospitality
Our solutions
With a product portfolio spanning from advanced
industrial vacuum solutions to high-pressure
washers and floorcare equipment, Nilfisk has
unique range in terms of breadth and depth.
The customers we serve
The need for cleaning is universal, and the effect
of clean is valuable to our customers everywhere.
Nilfisk serves customers around the world, targeting
strategic customer segments and key applications.
Revenue by products
and services
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 consumer market.
Professional pressure
washers that use hot/
cold water, stationary
pressure washers,
petrol/diesel driven
pressure washers, high-
pressure washers for
consumer market.
Service, parts, accessories,
and consumables
across all four business
segments.
AT A GLANCE
NILFISK ANNUAL REPORT 20233
Financial StatementsManagement Review
Management Review Financial Statements
At a glance
2023 in brief
Letter from the Chair and the CEO
Financial highlights 2023
5-year consolidated financial highlights
Sustainability highlights
ESG performance
Outlook for 2024
Financial targets and capital allocation
Our strategy
Business Plan 2026
Strategic priorities
Optimization opportunities
Our business
Business model
Our customers
Solutions
Channels
R&D and Operations
Our results
Business performance
Professional
Service
Specialty
Consumer
Regions
Financial review
Q4 performance
Quarterly overview
Our governance
Corporate governance
Board of Directors
Nilfisk Leadership Team
Risk management
Shareholder information
Consolidated financial statements
Income statement and statement of
comprehensive income
Statement of financial position
Cash flow statement
Statement of changes in equity
Notes to the consolidated
financial statements
Parent company financial
statements
Management’s statement
Independent auditor’s report
2
5
5
7
8
9
11
16
17
18
19
21
27
32
33
34
35
37
38
40
41
46
48
49
50
51
54
58
60
62
63
65
66
67
68
69
119
125
126
NILFISK ANNUAL REPORT 20234
Financial StatementsManagement Review
We adapted the
business to the
challenging cir-
cumstances with
concrete actions.
Consequently,
we have deliv-
ered largely in
line with our
plans.
Peter Nilsson
Chair
In 2023, we dedicated our focus to developing
Nilfisk according to our Business Plan 2026, which
we launched in 2022. We invested in our growth
platforms and laid the foundations for future
success. We targeted the elements that will place
us in the right position to create stable long-term
growth. Most of our financial business metrics
showed solid progress during the year. All in all, we
are coming out of 2023 with a stronger platform.
However, 2023 was also another year impacted
by conflicts, natural disasters, and inflationary
pressures affecting people, governments, and
businesses all over the world. The challenges have
required all of us to find new ways of navigating
changed circumstances. In this environment we
pursued pockets of growth across regions and
customer segments. Consequently, we have
delivered largely in line with our plans.
We end the year with organic growth of -0.3% in
2023, in line with the latest outlook announced on
November 16, 2023. Market dynamics affected
parts of our business in different ways. Organic
growth in the professional segment excluding
Private Label was flattish, as price management
was able to offset declining volumes. The effects
of the economic slowdown affected demand in
EMEA in the first half of 2023, while Americas saw
declining demand in the second half. Growth in
APAC has been solid throughout the year.
The Service Business grew, benefitting from our
strategic focus and solid demand. However the
progress is not fully according to our expectations.
A year with steady progress delivering
on strategic priorities
5-year consolidated financial highlights Sustainability highlights Outlook Financial targets and capital allocationFinancial highlights ESG performance
Financial StatementsManagement Review
NILFISK ANNUAL REPORT 2023
5
Our governanceOur resultsOur businessOur strategy2023 in brief
Letter from the Chair and the CEO
Our Specialty Business was impacted by declining
demand across Americas and EMEA, leading
to negative organic growth. Revenue from the
Consumer Business declined organically for the full
year, but growth returned in the second half of 2023.
Business Plan 2026 in its second year:
A foundation for growth
We took important steps during the year to build
a strong foundation that will act as a catalyst for
the acceleration of Business Plan 2026 in the years
ahead.
For example, in spring 2022 we changed the
Americas from being a sales-only region to become
a full P&L region. The new setup has proven to
promote collaboration and alignment across all
functions while improving customer service.
In 2023 we have followed this up and created
EMEA and APAC as regions with a similar setup.
The regions have a clear mandate to move
closer to our customers, strengthening our value
creation potential. We have taken major steps in
professionalizing and scaling our service offering.
As a result of our initiatives, we are seeing a shift
from ad hoc services to more structured services
including planned maintenance. Another strategic
priority in our Business Plan 2026 is to lead with
sustainable products. The year 2023 was a step
forward-year in terms of product vitality.
Alongside the work with new product lines and
platforms, we upgraded our existing products,
introducing new features in both our professional
and consumer ranges. The year has also been
formative in developing new products that will be
launched in 2024.
We continued to enhance our supply chain
robustness in accordance with our business plan.
Though our business in Americas was to some
extent affected by longer-lasting supply chain
constraints, manufacturing output in our US
production facility improved gradually over the year.
We invested in capacity expansion for our large
Floorcare equipment, increased dual sourcing of
key components, and enhanced production line
efficiencies.
Considering the macroeconomic environment and
Nilfisk’s current momentum, Nilfisk expects organic
growth for 2024 to be between 3% and 6% and an
EBITDA margin before special items to be between
13% and 15%.
Adopting sustainability broadly in the organization
In 2023, our sustainability efforts have become even
more engrained in our core business. Our internal
processes direct our teams to act in a sustainable
manner. We have rolled out a new fleet policy,
In 2023, we invested in
growth platforms and
laid the foundations
for future success.
René Svendsen-Tune
CEO
Nilfisk. This will benefit Nilfisk in both the medium
and long term.
Thank you for the support
We would like to thank our customers for their
continued loyalty and belief in Nilfisk. We have
benefitted immensely from the feedback we have
received during the year of working even closer
together.
We would also like to extend a thank you to our
shareholders for their continued support. We
appreciate your dedication to us and our solutions
to navigating through an unpredictable economic
climate. Finally, a special thanks goes to our
dedicated employees worldwide who continue to
strive for excellence in everything we do. The unique
Nilfisk spirit that we all feel is created by every
single one of you bringing your professional skills
and your dynamic personalities with you to work
every day.
On behalf of Nilfisk
Peter Nilsson
Chair
René Svendsen-Tune
President & CEO
continuing the transition towards electric vehicles
and we are installing solar panels on the roofs of
our buildings.
In 2023, Nilfisk was awarded a Silver Medal
by EcoVadis. This result put Nilfisk in the 86th
percentile among all companies reporting into
EcoVadis, scoring 20 points above the industry
average. We upheld our strong carbon disclosure
score from CDP for the 4th consecutive year
receiving a score of A-.
In our Business Plan 2026, we have set a near-
term target to increase the equal representation
of the underrepresented gender in senior
management positions. In 2023, we reached 30%,
bringing us close to our target to have 34% of the
underrepresented gender in top management by
2026, while pursuing equal representation by 2030.
In 2023, we again donated cleaning machines to a
hospital in a conflict zone in Ukraine.
Changes to the executive management
Torsten Türling stepped down as CEO of Nilfisk
on August 17, 2023, due to family reasons. The
Board of Directors appointed Deputy Chair René
Svendsen-Tune as interim CEO of Nilfisk as of
August 18, 2023. After conducting a thorough
search process, the Board of Directors at Nilfisk
announced the appointment of Jon Sintorn as new
CEO on December 17, 2023. René Svendsen-Tune
will stay on as Interim CEO of Nilfisk until Jon
Sintorn assumes the role, which will be no later than
July 1, 2024.
The work continued to strengthen Nilfisk
management by adding new competencies both to
the board and to Nilfisk Leadership Team. We are
entering 2024 with stronger management, with new
board members bringing increased international
experience and industry-relevant competencies to
5-year consolidated financial highlights Sustainability highlights Outlook Financial targets and capital allocationFinancial highlights ESG performance
Financial StatementsManagement Review
NILFISK ANNUAL REPORT 2023
6
Our governanceOur resultsOur businessOur strategy2023 in brief
Letter from the Chair and the CEO
994.9
mEUR
2021
144.3
mEUR
1,069.5
mEUR
2022
1,033.6
mEUR
2023
140.8
mEUR
132.4
mEUR
2023
25
20
15
10
5
0
-5
-10
-15
20222021
4.9%
-0.3%
20.7%
202320222021
Financial
highlights
2023
Nilfisk delivered an acceptable set of
results with solid progress on a number
of financial business metrics. Organic
revenue growth and EBITDA margin
before special items were in line with
the latest outlook announced on
November 16, 2023.
12.8% 115.2 mEUR
14.5%
2021
51.0 mEUR
2021
58.5 mEUR
2021
338.5 mEUR
2021
12.8%
2023
35.3 mEUR
2023
115.2 mEUR
2023
252.2 mEUR
2023
35.3 mEUR
1,033.6 mEUR 132.4 mEUR
-0.3%
252.2
mEUR
EBITDA margin
before special items (bsi)
The EBITDA margin bsi came to 12.8%, a decline
of 0.4 percentage point. The tailwind from the solid
increase in gross margin only partly offset the
impact from the decline in revenue and the higher
overhead cost.
Free cash flow
Free cash flow grew by 60.7 mEUR. Operating
cash flow grew by 61.0 mEUR during 2023. Cash
flow benefitted from changes in working capital,
including an increased contribution from the non-
recourse factoring program of 12.6 mEUR.
Profit for the year
Profit for the year amounted to 35.3 mEUR, a
decline of 5.3 mEUR. The lower EBITDA bsi drove
the decline, partly offset by lower financial items,
while special items remained at the same level as
in 2022.
Revenue
Total revenue was 3.4% lower than in 2022, driven
by muted demand for products across categories.
Demand for services remained strong and price
management across the business supported
revenue.
Organic growth
Organic growth (OG) for the total business was
-0.3%. Service delivered strong OG of 5.5%.
Professional and Specialty declined despite strong
growth in APAC. Consumer declined, negatively
impacting overall OG, but grew in the second half of
2023.
EBITDA before special items (bsi)
EBITDA bsi was lower by 8.4 mEUR. The gross
margin improvement was driven by strong price
management to actively mitigate cost inflation on
raw materials and labor rate increases. A favorable
product mix and lower freight costs also benefited
EBITDA bsi, but did not fully offset lower volumes
and higher overhead costs.
Net interest-bearing debt (NIBD)
NIBD reached 252.2 mEUR, a decline of 72.5 mEUR,
driven by initiatives to lower working capital. The
gearing declined to 1.9x and is now within the
Business Plan 2026 target range of 1.5-2.0x.
324.7 mEUR
2022
54.5 mEUR
2022
40.6 mEUR
2022
13.2%
2022
5-year consolidated financial highlights Sustainability highlights Outlook Financial targets and capital allocationLetter from the Chair and the CEO ESG performance
Financial StatementsManagement Review
NILFISK ANNUAL REPORT 2023
7
Our governanceOur resultsOur businessOur strategy2023 in brief
Financial highlights
5-year
consolidated
financial
highlights
1
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.
Please find definitions in note 8.6
EUR million 2023 2022 2021 2020 2019
Income statement
Revenue
1,033.6 1,069.5 994.9 832.9 966.5
EBITDA before special items
1
132.4 140.8 144.3 100.5 117.7
EBITDA
1
123.1 133.3 139.9 90.6 95.0
Operating profit before special items
1
71.1 79.5 84.1 32.9 49.8
Operating profit
1
61.2 69.6 79.7 22.1 25.9
Special items, net
-9.9 -9.9 -4.4 -10.8 -23.9
Financial items, net
-14.7 -17.0 -11.6 -14.7 -14.0
Profit (loss) for the year
35.3 40.6 51.0 -2.6 8.7
Cash flow
Cash flow from operating activities
143.0 82.0 74.7 89.5 76.1
Cash flow from investing activities
-27.8 -27.5 -16.2 -16.0 -40.8
— hereof investments in property, plant and equipment
-8.6 -10.5 -5.8 -5.4 -10.4
— hereof investments in intangible assets
-22.4 -15.9 -11.7 -11.6 -33.0
Free cash flow excluding acquisitions and divestments
115.2 54.5 58.5 73.5 35.3
Statement of financial position
Total assets
814.0 863.4 841.2 763.5 840.1
Group equity
275.0 260.7 207.7 134.8 158.0
Working capital
139.6 202.1 175.7 131.6 157.9
Net interest-bearing debt
252.2 324.7 338.5 382.0 414.1
Capital employed
527.2 585.4 546.2 516.8 572.1
Financial ratios and employees
Organic growth -0.3% 4.9% 20.7% -11.5% -4.1%
Gross margin
1
40.9% 39.5% 40.5% 41.6% 42.1%
EBITDA margin before special items
1
12.8% 13.2% 14.5% 12.1% 12.2%
EBITDA margin
1
11.9% 12.5% 14.1% 10.9% 9.8%
Operating profit margin before special items
1
6.9% 7.4% 8.5% 4.0% 5.2%
Operating profit margin
1
5.9% 6.5% 8.0% 2.7% 2.7%
Financial gearing
1
1.9 2.3 2.3 3.8 3.5
Overhead costs ratio
1
34.0% 32.0% 32.0% 37.7% 37.0%
CAPEX ratio
3.0% 2.5% 1.8% 2.0% 4.5%
Working capital ratio
1
17.8% 21.6% 15.4% 18.8% 20.6%
Return on Capital Employed (RoCE)
1
12.7% 13.4% 15.8% 5.9% 8.5%
Basic earnings per share (EUR)
1.30 1.50 1.88 -0.10 0.32
Diluted earnings per share (EUR)
1.30 1.50 1.88 -0.10 0.32
Number of full-time equivalents, end of period
4,698 4,655 4,887 4,339 4,886
Sustainability highlights Outlook Financial targets and capital allocationFinancial highlightsLetter from the Chair and the CEO ESG performance
Financial StatementsManagement Review
NILFISK ANNUAL REPORT 2023
8
Our governanceOur resultsOur businessOur strategy2023 in brief
5-year consolidated financial highlights
Member
2023
2022
2021
2023
2023
2030
2026
40%30%26% 65/100 65/10068/10034%
2019
2022
2022
2022
2023
2030
35%16%10% 11%
2021
2023
2030
48%25%
16% 65/10025% 30%
Sustainability highlights
reduction in Scope 1 and 2
greenhouse gas emissions
Target of 35% emissions reduction by 2030, from
2019 base year. 16% emissions reduction achieved
in 2023.
reduction in Scope 3 greenhouse gas
emission intensity
Target of 48% emission intensity reduction by 2030,
from 2021 base year. 25% emission intensity reduc-
tion achieved in 2023.
women in top management
In 2023, Nilfisk had a representation of 30% women
in top management comprising Nilfisk Leadership
Team and its direct reports. The target is to have
34% of the underrepresented gender in top
management by 2026 and equal representation by
2030 (minimum 40/60).
Scope 1 emissions are directly created by owned or
controlled sources, including facilities and vehicle
fleet.
Scope 3 emissions are all other indirect upstream and
downstream emissions that occur in the value chain.
Nilfisk’s Scope 3 target aims at reducing greenhouse
gas emissions from the use of sold products.
Scope 2 emissions are from purchased sources
such as electricity, steam, and heating.
Other ESG frameworks
Upholds strong CDP score
In 2023, Nilfisk was included in CDP’s leadership
category for the 4th consecutive year receiving a
score of A-. This reflects how Nilfisk upholds high
standards in climate and environmental actions
and continues to implement best practices.
points by EcoVadis
In 2023, Nilfisk was awarded a Silver Medal, scoring
65 out of 100 points, demonstrating an advanced
environmental management system.
A Silver Medal for Nilfisk
In 2023, Nilfisk was awarded an EcoVadis Silver Medal,
scoring a total of 65 out of 100 points, which is a 3-point
decrease compared to last year. While Nilfisk’s target is
to continuously improve its scoring to obtain and sustain
a Gold Medal rating, Nilfisk is still in the 86th percentile
among all companies reporting into EcoVadis and
scores 20 points above the average in our industry.
ESG ratings and frameworks
Nilfisk favors transparent methodology and
feedback. We share our data and proudly
disclose ratings for all stakeholders to use.
5-year consolidated financial highlights Outlook Financial targets and capital allocationFinancial highlightsLetter from the Chair and the CEO ESG performance
Financial StatementsManagement Review
NILFISK ANNUAL REPORT 2023
9
Our governanceOur resultsOur businessOur strategy2023 in brief
Sustainability highlights
5-year consolidated financial highlights Outlook Financial targets and capital allocationFinancial highlightsLetter from the Chair and the CEO ESG performance
Financial StatementsManagement Review
NILFISK ANNUAL REPORT 2023
10
Our governanceOur resultsOur businessOur strategy2023 in brief
Sustainability highlights
ESG performance
Environment
Data indicator Unit Assured* 2023 2022 2021 2020 2019 Comments ESRS**
Environmental data
GHG emissions
Scope 1 and 2
Total scope 1 and 2 - market based tons CO
2
eq 19,013 20,143 22,997 20,034 22,718
Total market-based scope 1 and 2 GHG emissions decreased by 6% compared to 2022,
and 16% compared to base year 2019. Fleet emissions increased due to additional vehicles
and increased mileage in 2023, while site emissions decreased driven by energy efficiency
activities, Energy Attribute Certificates (EACs), and reduced production output.
Changes from 2022: the scope of reporting has been extended to cover 100% of Nilfisk sites
with employees. The sites excluded in 2022 represented around 3% of Nilfisk market-based
scope 1 and 2 emissions. Additionally, the fleet emissions calculation has been improved to
account more accurately for mileage resulting in a decrease of fleet emissions throughout the
years. The market-based scope 1 and 2 emissions reported in Nilfisk’s Sustainability report
2022 (22,636 tons CO2 eq in 2019, 20,367 tons CO2 eq in 2020, 22,304 tons CO2 eq in 2021 and
20,316 tons CO2 eq in 2022) have been restated.
Total scope 1 and 2 - location based tons CO
2
eq 20,769 20,783 22,193 19,730 22,045
Total location-based scope 1 and 2 GHG emissions decreased by 6% compared to base year
2019. Emissions increased by 2% compared to 2022 driven by fleet emissions increasing.
Changes from 2022: 2023 is the first year for which location-based emissions are reported.
Scope 1 tons CO
2
eq 15,158 14,925 14,923 12,558 13,736
Scope 1 emissions increased by 2% driven by additional vehicles and increased mileage
increasing fleet emissions in 2023.
Changes from 2022: scope 1 emissions reported in 2022 (14,231 tons CO2 eq in 2019, 13,353
tons CO2 eq in 2020, 14,756 tons CO2 eq in 2021 and 15,609 tons CO2 eq in 2022) have been
restated following the change of methodology to account more accurately for mileage, and the
extension of Nilfisk sites covered in scope 1 and 2 calculation.
E1-6 48(a)
Scope 2 - location-based tons CO
2
eq 5,611 5,859 7,270 7,172 8,309
Scope 2 location-based emissions decreased by 4% in 2023 as a result of increased
investments in energy efficiency initiatives as well as reduced production output.
E1-6 49(a)
Scope 2 - market-based tons CO
2
eq 3,856 5,218 8,074 7,476 8,981
Scope 2 market-based emissions decreased by 26% in 2023 due to the increased investment
in EACs and in energy efficiency initiatives, as well as reduced production output.
Changes from 2022: scope 2 market-based emissions reported in 2022 (8,405 tons CO2 eq in
2019, 7,014 tons CO2 eq in 2020, 7,548 tons CO2 eq in 2021 and 4,708 tons CO2 eq in 2022)
have been restated mainly due to the extension of Nilfisk sites covered in scope 1 and 2
calculation.
E1-6 49(b)
Scope 1 and 2 market-based emissions per
relevant breakdown
Manufacturing sites tons CO
2
eq 4,423 6,285 9,639 7,701 8,992
Manufacturing sites emissions decreased by 30% in 2023 as a result of increased
investments in EACs and in energy efficiency initiatives, as well as reduced production output.
E1-6 48 and
49 referring
to AR 41
Non-manufacturing sites tons CO
2
eq 3,808 3,834 4,334 4,105 5,003
Emissions from non-manufacturing sites remained stable in 2023.
Fleet tons CO
2
eq 10,782 10,024 9,024 8,229 8,722
Fleet emissions increased by 8% due to additional vehicles and increased mileage in 2023.
Changes from 2022: fleet emissions reported in Nilfisk’s Sustainability report 2022 (9,360 tons
CO2 eq in 2019, 9,172 tons CO2 eq in 2020, 9,030 tons CO2 eq in 2021 and 10,839 tons CO2 eq
in 2022) have been restated due to the change of methodology to account more accurately for
mileage driven by vehicles.
Scope 3 - significant scope 3 GHG emissions
‘Purchased goods and services’ is a significant scope 3 emission category for Nilfisk and will
be reported in 2024.
Scope 3 - use of sold products tons CO
2
eq 1,612,672 1,929,831 2,059,437 - -
Absolute scope 3 emissions from use of sold products decreased by 16% between 2022
and 2023 and by 22% compared to base year 2021 driven by a combination of lower sales
volumes and a change in the mix of sold products away from high emitting products.
Changes from 2022: it is the first year that Nilfisk reports absolute scope 3 - use of sold
products emissions.
E1-6 51
Scope 3 - use of sold products intensity metric kg CO
2
eq/
EUR gross profit
3.82 4.57 5.11 - -
Absolute GHG emissions decreased while gross profit increased in 2023. This resulted in a
reduction in scope 3 emission intensity by 25% compared to base year 2021.
5-year consolidated financial highlights Sustainability highlights Outlook Financial targets and capital allocationFinancial highlightsLetter from the Chair and the CEO
Financial StatementsManagement Review
NILFISK ANNUAL REPORT 2023
11
Our governanceOur resultsOur businessOur strategy2023 in brief
ESG performance
Environment
Data indicator Unit Assured* 2023 2022 2021 2020 2019 Comments ESRS**
Environmental data
Energy consumption
Total amount of energy MWh
91,370 91,109 95,616 85,254 95,514
Total energy consumption increased in 2023, due to increase in fuel consumption from the
fleet.
Changes from 2022: total energy consumption reported in 2022 (93,232 MWh in 2019, 87,867
MWh in 2020, 93,085 MWh in 2021 and 92,816 MWh in 2022) have been restated following the
change of methodology to account more accurately for mileage, and the extension of Nilfisk
sites covered in scope 1 and 2 calculation. Most of the disaggregated indicators reported under
‘Energy consumption’ are being reported for the first year.
E1-5 37
Fossil energy MWh
85,667 86,986 94,653 84,136 94,014 E1-5 37(a)
Fuel from coal and coal products MWh
- - - - - E1-5 38(a)
Fuel from crude oil and petroleum products MWh
52,912 49,992 46,438 42,732 46,948
Consumption of fuel from crude oil and petroleum products increased due to increase in
number of vehicles and mileage.
Changes from 2022: this indicator corresponds to the indicator ‘Other fuels’ in Nilfisk’s
Sustainability Report 2022. Values reported in the 2022 report (47,971 MWh in 2019, 48,044
MWh in 2020, 46,543 MWh in 2021 and 53,967 MWh in 2022) have been restated following the
change of methodology to account more accurately for mileage, and the extension of Nilfisk
sites covered in scope 1 and 2 calculation.
E1-5 38(b)
Fuel from natural gas MWh
22,516 24,177 29,095 20,787 23,337
Natural gas consumption decreased as a result of investments in energy efficiency and
reduced production output.
E1-5 38(c)
Fuel from other fossil MWh
- - - - - E1-5 38(d)
Purchased or acquired electricity, heat, steam
and cooling from fossil sources
MWh
10,239 12,817 19,120 20,617 23,729
Electricity purchased from fossil sources decreased as a result of investments in EACs and in
energy efficiency, as well as lower production output.
E1-5 38(e)
Share of fossil energy in total energy consumption %
93.8% 95.5% 99.0% 98.7% 98.4%
Share of fossil energy in total energy consumption decreased by 1.7 pp predominately as a
result of investments in EACs.
Energy from nuclear sources MWh - - - - - E1-5 37(b)
Share of energy from nuclear sources in total
energy consumption
%
- - - - -
Renewable energy MWh
5,703 4,123 964 1,118 1,500 E1-5 37(c)
Fuel from renewable sources MWh
224 556 964 1,118 1,500
Consumption of fuel from renewable sources decreased as a result of lower usage of
vehicles driving on biodiesel.
E1-5 37(c)i
Purchased or acquired electricity, heat, steam
and cooling from renewable sources
MWh
5,268 3,567 - - -
Consumption of purchased electricity from renewable sources increased by 34% due to
higher investments in EACs.
E1-5 37(c)ii
Self-generated non-fuel renewable energy MWh
212 - - - -
For the first year, Nilfisk produced self-generated solar electricity from solar panels installed
at its production plant in Dongguan, China.
E1-5 37(c)iii
Share of renewable sources %
6.2% 4.5% 1.0% 1.3% 1.6%
Share of renewable sources increased by 1.7 pp as a result of increased investments in EACs.
Waste
Total waste generated tons 1,549 1,559 1,733 - -
In2023, the total amount of waste generated remained flat compared to 2022. This result
was driven by an increase in Americas and in APAC offset by a decrease in EMEA.
Total non-hazardous waste tons 1,531 1,543 1,722 - -
Total hazardous waste tons 18 16 12 - -
The increase in hazardous waste was driven by site cleaning initiatives at Nilfisk’s
manufacturing sites.
Water
Water consumption m³ 80,409 79,773 91,671 109,942 124,936
Water consumption remained at 2022 level.
Water recycled m³ 8,955 12,926 12,235 17,995 36,575
The volume of recycled water decreased due to fewer tests needed at the R&D site in
Denmark, and a lower rotomolding activity level at the manufacturing site in China.
ISO certifications
Number ISO 14001-certified sites Number 9 9 7 7 7
Number ISO 9001-certified sites Number 13 13 11 11 12
Number ISO 45001-certified sites Number 1 1 - - -
5-year consolidated financial highlights Sustainability highlights Outlook Financial targets and capital allocationFinancial highlightsLetter from the Chair and the CEO
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ESG performance
Social
Data indicator Unit Assured* 2023 2022 2021 2020 2019 Comments ESRS**
Social data
Total employee headcount Number 4,676 4,617 4,678 4,374 4,797
Total employee headcount increased by 1%.
S1-6 50(a)
Headcount per country
Hungary Number
799 796 879 745 794
Hungary, the US and China each represent more than 10% of the Nilfisk workforce. The employee
headcount in the US increased by 7% while employee headcount in China decreased by 3%.
S1-6 50(a)
US Number
749 699 612 588 671
China Number
605 621 668 579 623
Rest of the world Number
2,523 2,501 2,519 2,462 2,709
Headcount per gender
Male Number
3,345 3,294 3,316 3,148 3,426
Male employees made up the largest part of the workforce and the number of male employees
increased by 1.5%.
S1-6 50(a)
Female Number
1,287 1,302 1,344 1,223 1,326
Non-binary Number
3 2 - - -
Not declared Number
41 19 18 3 45
Headcount of permanent employees Number
4,213 4,159
- - -
Male Number
3,061 3,005
- - -
The number of permanent employees increased by 1%.
S1-6 50(b)i
Female Number
1,148 1,151
- - -
Non-binary Number
3 2
- - -
Not declared Number
1 1
- - -
Headcount of temporary employees Number
462 458 - - -
Male Number
283 289 - - -
The number of temporary employees increased by 1%.
S1-6 50(b)i
Female Number
139 151 - - -
Non-binary Number
- - - - -
Not declared Number
40 18 - - -
Headcount of non-guaranteed hours employees Number
1 - - - -
Male Number
1 - - - - S1-6 50(b)iii
Female Number
- - - - -
Non-binary Number
- - - - -
Not declared Number
- - - - -
Total number of employees who have left the company Number
833 1,023 - - -
Employee turnover - all employees %
18% 23% 21% 20% 24%
Employee turnover decreased by 5 pp driven by a decrease in voluntary turnover.
S1-6 50 (c)
Employee turnover - permanent employees %
16% 19% - - -
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ESG performance
Social
Data indicator Unit Assured* 2023 2022 2021 2020 2019 Comments ESRS**
Social data
Gender distribution at top management levels
Male Number
44 48 - - -
Share of women in the Nilfisk Leadership Team and its direct reports (women in top management)
increased by 4 pp.
S1-9 66(a)
Female Number
19 17 - - -
Non-binary Number - - - - -
Not declared Number
- - - - -
Male %
70% 74% - - -
Female %
30% 26% - - -
Non-binary % - - - - -
Not declared %
- - - - -
Distribution of employees by age group - - -
Under 30 years old %
11% 11% - - -
Age composition remained the same as in the previous year.
S1-9 66(b)
30-50 years old %
62% 62% - - -
Over 50 years old %
27% 27% - - -
Gender pay gap %
21% 24% - - -
Gender pay gap decreased by 3 pp.
Changes from 2022: The methodology of calculation has been updated to cover all geographies. The
unadjusted gender pay gap reported in 2022 (19%) has been restated. This indicator has been renamed
from “unadjusted gender pay gap” to “gender pay gap” to align with ESRS.
S1-16 97(a)
Annual total remuneration ratio Ratio
62:1 62:1 69:1 66:1 65:1
No changes to the annual total remuneration ratio (CEO pay ratio).
Changes from 2022: The methodology of calculation has changed from a cost accounting approach
to a Total Cash Compensation one. The CEO pay ratio reported in 2022 (38.6 in 2021 and 36.4 in 2022)
has been restated. This indicator has been renamed from “CEO pay ratio” to “annual total remuneration
ratio” to align with ESRS.
S1-16 97(b)
Gender distribution in Board of Directors
(% women, based on headcount)
% 25% 14% 14% 12% 14%
One additional female board member was elected during the year, increasing gender diversity by 11
pp.
ESRS 2 DR
GOV-1 21(d)
Gender diversity in senior management
(% women, based on headcount)
%
21% 19% 14% - -
The share of female vice presidents and above (women in senior management) increased
by 2 pp.
Gender diversity in Nilfisk Leadership Team
(% women, based on headcount)
% 22% 20% 13% 25% 17%
Nilfisk Leadership Team decreased by one male member, increasing the share of women by 2 pp.
Engagement survey participation rate % 90% 88% 90% 92% 92%
The participation rate of the employee engagement survey increased by 2 pp.
Employee engagement score Score 8.1/10 8.1/10 8.1/10 8.0/10 7.8/10
The employee engagement score remained stable and stayed above the industry benchmark.
Fatalities (headcount) Number - - - - -
There were no fatal accidents in 2023.
S1-14 88(b)
Lost time injury (LTI) frequency rate Rate 5.6 5.1 9.6 - -
Lost time injury frequency rate increased by 9.8%.
Lost time injury (LTI) severity rate Rate 0.24 0.06 - - -
Lost time severity rate increased by 75% due to two accidents resulting in longer recovery times.
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ESG performance
Governance
Data indicator Unit Assured* 2023 2022 2021 2020 2019 Comments ESRS**
Governance data
EcoVadis score Score 65 68 65 - -
EcoVadis rating Rate
Silver Gold Silver - -
Share of supplier spend align with the UNGC 10
principles
% 87% 83% 86% 93% 93%
Share of supplier spend which aligns with the UNGC principles increased to 87%, above target of
min 80%. The increase is primarily coming from Europe where 94% of all suppliers are aligned with
the UNGC principles.
Number of audits of suppliers Number 40 25 34 63 10
Number of supplier audits increased in 2023 compared to the two previous years influenced by
COVID-19. Online audits were introduced during the pandemic, and are now a standard part of
auditing.
Cumulative number of suppliers covered by CSR
assessment
Number 294 156 129 14 -
Number of suppliers covered by CSR assessment increased by 138.
Changes from 2022: the scope for data collection has been extended to material indirect suppliers,
while until 2022 the assessment was only conducted on direct suppliers.
Number of whistleblower cases submitted through
whistleblower-function
Number 2 1 2 6 9
In 2023 Nilfisk updated its Business Code of Conduct and Whistleblower Policy which has
facilitated the reporting of sustainability matters.
Whistleblower cases admissible Number 1 1 2 2 1
Whistleblower cases resolved Number 1 0 2 6 9
*
The data indicator has been subject to limited assurance, covering the columns ‘data
indicator’, ‘unit’, and ‘2023’. Information presented in columns ‘2022’, ‘2021’, ‘2020’, ‘2019’,
‘Comments’ was not included in the scope of the limited assurance provided in 2023.
In 2022, limited assurance was provided for the following indicators: “Total scope 1 and 2 -
market based”, “Scope 1”, “Scope 2 - market based”, “Fleet”, “Scope 3 - use of sold products
intensity metric”, “Gender diversity in senior management” and “Ecovadis score and rating”.
The data indicators “Total Scope 1 and 2 - market based”, “Scope 1”, “Scope 2 - market
based” and “Fleet” have been restated, see comment column for more information.
** In 2023, Nilfisk has for the first time aligned its ESG performance table to the European
Sustainability Reporting Standards (ESRS) on selected indicators.
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ESG performance
We expect that both demand and output will pick up
in 2024, leading to volume growth across products
and services. The muted demand in North America
that affected the second half of 2023 leads to some
uncertainty.
The range for organic revenue growth is expected
to be 3% to 6%, mainly supported by demand,
increased output, a solid order book end-2023, and
minor effects of pricing actions.
The range for EBITDA margin before special
items is expected to be 13% to 15%. The EBITDA
margin is expected to be supported by increased
revenue, gross margin expansion, and the structural
efficiency improvements realized in 2023.
CAPEX spend is expected around 4% of revenue
with more than half directed towards product
investments.
Special items are expected in the range from low to
mid-single digit mEUR.
Given our ongoing initiatives and investments in
structurally improving the business, our financial
targets for 2026 are confirmed, see page 17.
EBITDA margin before special items
13% 15%
Outlook for 2024
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.
Organic revenue growth
3% 6%
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Outlook
Capital allocation towards 2026
Our capital structure is constructed to ensure the
financial flexibility required 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 or share buy-backs are
expected at around one third of adjusted profit after tax.
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 enhance 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.
EBITDA margin before special
items in 2026
Gearing measured as net interest-
bearing debt to EBITDA before
special items in 2026
Financial targets for 2026
Revenue in 2026 (bnEUR)
1.2 1.3
1.5x 2.0x
Above 16%
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Financial targets and capital allocation
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.
Our
strategy
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Our governanceOur resultsOur business2023 in brief Our strategy
At the beginning of 2022, Nilfisk
launched Business Plan 2026. That
makes 2023 year two 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.
Nilfisk value proposition
Our strategy is focused on long-term sustainable
growth, and our value creation proposition is based
on three fundamental pillars: Lifecycle services
optimizing customer value creation; Customer-
centric innovation ensuring technology-enabled
value creation; and our Sustainability commitment
creating value for all stakeholders.
Strategy elements
Business Plan 2026 is centered around three
strategic priorities and three optimization
opportunities to ensure long-term sustainable
growth.
Year two of Business Plan 2026
Three strategic priorities were identified as critical
to securing long-term growth: Develop service-as-
a-business; Grow in large-scale markets; and Lead
with sustainable products. In addition, three existing
growth platforms were identified as optimization
opportunities: Expand EMEA leadership position;
Enhance supply chain robustness; and Unleash
growth of Specialty Business. Both the strategic
priorities and the optimization opportunities
provides prospects to strengthen our leading
position in the professional cleaning equipment
industry to ensure higher value creation. Finally, with
the implementation of new Ways of Working, people
are mobilized throughout the organization.
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Optimization opportunitiesStrategic priorities
Business 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
Expand
EMEA 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
• Strategy deployment and
managing projects
• Nilfisk Operating System
• IT backbone
• Digital applications and
customer interface
• Mobilizing the organization
• Growth mindset
Business Plan 2026
Focus on long-term sustainable growth
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Optimization opportunitiesStrategic priorities
Business Plan 2026
2022 2023 2026
1
294
302
350-390
Service Business revenue, mEUR
1
Target in Business Plan 2026.
2021 actual
2022 actual
2023 actual
2026 target
271
2021
Contract attachment rate
40%
7%
10%
12%
Service Business share of revenue
28% 29%27% 35%
Develop service-as-a-business
Strategic priorities
Progress report
Service-as-a-business is a cornerstone for
Nilfisk. It’s a new business unit and an important
contribution to Nilfisk’s sustainability commitment.
Instead of a traditional product-centric model based
on reactive repair service, Nilfisk is moving towards
a proactively-managed total service solution to
deliver better value to customers. The target is
a closer customer relationship, stable recurring
revenues, enhanced profitability, and a sustainable
product lifecycle.
In 2023, progress continued towards developing a
service organization focused on customer-centric
innovation and life-cycle services to deliver on the
Nilfisk customer value proposition. This year Nilfisk
put customers at the center with a stronger regional
and digital focus.
Investments in digital solutions
The development of digital solutions was
accelerated through investments and co-created
with customers to improve the service offering
from Nilfisk and drive service contract attachment
rates. Investments were made to develop the
Nilfisk connectivity portal. Here co-operation
with strategically-selected customers ensured
improvements to uptime and productivity, and to
test and further develop the digital system.
A setup designed for faster execution
Progress was also made on the operating model.
As part of the model, Nilfisk is adopting an
implementation strategy that brings the Service
Business and operations leaders closer to the
regions to accelerate the pace of implementation.
By co-integrating the Service Business and
the operations leaders with the regions, any
geographical distance between frontline and
backline organizations has been eliminated,
improving real-time interaction.
In 2023, the ‘Service Excellence Journey’ was
developed to sell service agreements and build long-
term partnerships with customers. This customer-
centric approach guides the Nilfisk decision-making
processes and ensures that services are tailored
to the specific demands of each customer in the
regions.
Measuring progress towards 2026
Progress on service-as-a-business was measured
by a set of KPIs. They are organic revenue growth,
the service agreement attachment rate, and revenue
from the Service Business as a share of total
revenue. Despite unfavorable market dynamics,
revenue from the Service Business grew 2.7%
compared to 2022, while its share of total revenue
increased to 29% from 28% in 2022.
From ad hoc to planned maintenance
In 2023, the efficiency of service improved, while the
contract attachment rate on new products increased
to 12%, up from 10% in 2022. During 2023, the
transition from ad hoc to planned maintenance
began. From an operational perspective, this
shift allows for more optimal resource allocation,
including the planning and allocation of service
technician resources, reducing the need for
reactive responses to sudden equipment failures
and minimizing downtime. Consequently, internal
processes can be further streamlined.
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Optimization opportunitiesBusiness Plan 2026
Strategic priorities
As a result, during 2023 the share of total structured
services including planned maintenance rose
compared with 2022, while ad hoc service work
orders declined.
New segment reporting
From 2023, the Service Business became a
separate business segment. As the ongoing work
to further develop the Service Business continues,
the segment reporting provides transparency on
financial progress.
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Strategic priorities
What is PAC?
Nilfisk offers Parts, Accessories, and
Consumables (PAC) for all product
groups. For our customers, professional
cleaning equipment, maintenance, service,
and access to parts, accessories, and
consumables are key to ensuring a smooth
experience and solid cleaning outcomes.
Reliable equipment is essential, and the use
of genuine spare parts, accessories, and
consumables reduces the risk of unplanned
breakdowns and the negative impact this
can have on the operation of our customer’s
business. Nilfisk PAC are easily available
either through our sales and service teams
directly or through our wide distribution
network of dealer partners across all
geographies. We believe that closeness
to our customers is a key strength to
securing continued operation of equipment
to maximize uptime, productivity, and
customer satisfaction.
Progress report
During 2023, the focus has been on speed of
execution towards 2026. Consequently, a global PAC
program was established. The program focuses
on ensuring the identification and execution of key
initiatives across the value chain to deliver growth
and profitability. It emphasizes cooperation between
global functions and regions around optimizing
PAC product offerings and go-to-market strategy,
driving end-to-end optimization and execution of
PAC activities, including commercial activation in
the regions.
The focus areas during the year was on sourcing,
logistics, products, and commercial execution.
As a result, Nilfisk improved PAC availability and
achieved an improved delivery performance
throughout the year. This improvement is the result
of concrete initiatives, supported by a general
stabilization of the global supply chain.
The key initiatives include:
• Re-establishment of a new Distribution Center in
Arkansas USA following tornado destruction in
Q1 2022.
• Organizational optimization including dedicated
planners and buyers for PAC in the EMEA and
Americas regions, supporting a more focused and
responsive approach to PAC operations.
• Implementation of a new PAC backend
organization that provides robust support
throughout the PAC value chain. This involves
clear ownership and dedicated support for PAC
availability throughout the product life cycle,
spanning new product introduction, growth, and
end-of-life phases.
The strategic role of PAC
PAC is part of the Service Business and accounts
for more than half of Nilfisk service revenue. As part
of Business Plan 2026, the plan is to increase the
revenue share from PAC and boost its profitability
towards 2026.
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Strategic priorities
CASE
During 2023 Nilfisk initiated a closer
co-operation with Laurenty, a facility
service business and long-term
customer of Nilfisk. The catalyst
was a renewed service agreement
between Laurenty and Nilfisk to
increase operational efficiency, prevent
unforeseen costs, and ensure proper
training on use of equipment.
Laurenty, a key player in the facility services industry
in Belgium, oversees a fleet of more than 1,000
Nilfisk machines. Being one of the largest facility
service businesses in its country with over 4,800
employees, managing a substantial fleet of cleaning
equipment in heavy use daily, Laurenty requires
a reliable partner that not only provides quality
equipment but also ensures that maintenance and
service is available every day - all year around.
Before entering the partnership, they faced hurdles
that included maintenance demands to cost
management and training of their workforce.
Tailored services catalyst for transformative
operational changes
The renewed agreement ensures better fleet
management, more frequent service, and faster
response to maximize equipment uptime, while
making sure that Laurenty harvests the benefits
of personalized technical support, expert advice,
and customized solutions that match its needs for
smooth operations.
For Laurenty, effective planning and management
of maintenance schedules was a major logistical
challenge. Balancing the availability of machines
for cleaning operations is key to success as delays
in maintenance directly impact productivity of
Laurenty’s operations.
Additionally, managing equipment maintenance
costs, spare part and unforeseen repairs requires a
service partner with thorough cleaning equipment
training for operators.
Nilfisk’s tailored service agreement became
the catalyst for a transformative change within
Laurenty’s operations. Understanding the
comprehensive needs of their business, Nilfisk
devised a comprehensive service package, including
maintenance, repair and replacement of parts, and
consumables.
A dedicated single point of contact, a locally
based Nilfisk Key Account Manager, has ensured
personalized support, while monthly service
analysis added a layer of reliability for Laurenty’s
day-to-day functioning.
Service-as-a-business is a strategic priority for us
and one of the growth platforms of Business Plan
2026. Moving from a product-centric model to a
customer-oriented mindset enables us to provide
extensive customer value through lifecycle service
solutions around our products. As in the case with
Laurenty, providing a proactive service solution is
essential to increasing both customer satisfaction
and establishing long-term partnerships that are
reliable and will continue to be profitable for both
parties in many years to come.
Nilfisk’s SC50 wrapped in Laurenty’s brand colors.
Tailoring solutions for successful service:
A partnership with Laurenty in Belgium
At Nilfisk, our
goal is not just to
provide equipment
but to build endur -
ing partnerships
that drive opera-
tional excellence
for the customer.
Laurent Heremans
Key Account Manager at Nilfisk
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Optimization opportunitiesBusiness Plan 2026
Strategic priorities
A strategic priority identified in Business Plan
2026 is to grow in large-scale markets. Nilfisk has
opportunities to strengthen its position in several
large-scale markets. The initial focus is the US
market, which by far is the largest single market
for professional cleaning equipment, representing
approximately 35% of the global market. During
2021 and 2022, a substantial and growing market
presence has been seen in the US, significantly
strengthening the market position. The year 2023
was a challenging year for Nilfisk after several years
with strong growth. The ambition towards 2026
remains unchanged.
During 2023, work was done within several focus
areas to drive growth in the large-scale US market.
The roll-out of the commercial strategy continued,
focusing primarily on partnering with dealers
including leveraging lead generation. Focus was
also widened to new customer segments, as work
was done to enhance focus on large customers,
as well as developing and investing in our Service
Business. Also, measures were taken to enhance
supply chain robustness.
During the year, there was a continued focus on
serving large customers to drive growth in this
region. In 2021, Nilfisk won a substantial contract
with United Rentals, the largest equipment rental
company in the world. The collaboration was
expanded in 2022 and in 2023 the agreement
continued to create value for Nilfisk.
Throughout 2023, the focus, in terms of types of
customers, was widened. This means lower risk
through a diversification of the customer base, while
ensuring a new baseline to grow.
Investments in service and operations
In 2023, developments and strategic investments
were made to the Service Business and these
investments have begun to bear fruit. The service
growth was driven by investments in front-line
technicians as well as streamlined processes and
upgraded systems. Inventory availability for PAC
was stabilized, which resulted in an improved
customer experience.
Also in 2023, measures were taken to enhance
supply chain robustness in the Americas. Nilfisk’s
operations in the Americas region experienced
some impact from prolonged supply chain
constraints. While manufacturing output gradually
improved throughout the year, the order book at the
end of Q4 2023 remained elevated but at a lower
level than in Q4 2022.
Notably, in the second half of 2023, manufacturing
output in Brooklyn Park continued to improve, with
a reduction in component shortages and optimizing
throughput in production playing a significant role.
The commitment to invest in capacity expansion
for large Floorcare equipment has been fulfilled,
alongside implementing dual sourcing for key
components and improving production line
efficiencies.
During 2023, improvements have been made to
ensure a stronger foundation for volume growth
in the years ahead. Nilfisk is in a good place to
leverage our strong position, given the widened
focus on customers and partners, continued
focus on our dealers, and optimized supply chain
robustness.
Grow in large-scale markets
Progress report
2022 2023 2026
1
313
306
340-380
Revenue in the US, mEUR
1
Target in Business Plan 2026.
253
2021
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Strategic priorities
48% reduction*
by 2030
20302021
>25%
Emission reduction target
with each new platform
Energy/Resource efficiency
Optimized for
lifecycle service
Differentiated by
customer-centric
innovation
Leading
sustainability
commitment
Modularity
Connectivity & customer interface
Commitment to reduce Scope 3
As outlined in Business Plan 2026, Nilfisk aims to
lead its industry with sustainable products, including
machines, solutions and services.
To reach this target, investments have been made
to provide upgrades to Nilfisk’s current product
offering alongside developing new products towards
2026.
The upgrades will introduce new technologies,
features, and digital functionalities, leveraging
existing products.
New products and new product platforms are
designed to be significantly more energy and
resource efficient than previous versions. Nilfisk is
also introducing a modularity concept to broaden
the product range and improve serviceability,
while reducing complexity and costs. This will
allow for resource-optimized, scalable growth
that contributes to our enhanced sustainability
commitments.
Nilfisk´s value proposition that is part of Business
Plan 2026 has provided the guiding principles for
our product innovation:
new products based on modular architecture.
Implementing modularity across the product range
will ensure a faster response to market changes
in comparison to the more traditional approach of
developing standalone products. Additionally, modular
principles can enhance product sustainability through
re-usable materials and by reducing the number of
parts required, while contributing to scale in operations
and reduced complexity.
Delivering sustainable products
Nilfisk remains committed to the Scope 3 target with
48% reduction by 2030. During 2023, the focus was on
developing products with a smaller carbon footprint
by reducing energy consumption and resource usage.
Significant Scope 3 reductions are targeted through
new products delivering 25% energy efficiency savings,
with product launches planned towards 2026 and
onwards.
The year 2023, the second year of Business Plan
2026, was also year two of strategically-increased
investments in R&D. Consequently, Nilfisk
introduced both new and upgraded products
during the year and several innovation projects
were commenced. Investments were concentrated
around sustainable solutions, technology, software,
modularity, and innovation, building the pipeline
to deliver on Nilfisk sustainability ambitions and
customer expectations.
The new S1 cordless stick vacuum, targeted at the
consumer segment, was launched in the second
half of 2023. Upgrades were made to improve some
bestselling products with new battery technology
to give the products fast-charging capability and
modular-scalable capacity.
On the technology front, user interface and
connectivity features were improved for some
products, increasing the number of connectable
machines. Through upgrades in the autonomous
portfolio with various intelligent features, this
business has been prepared for further scalability.
As planned, the pace of product launches is set to
increase towards 2026.
Towards modular architecture
In 2023, progress was made towards developing
Lead with sustainable products
Progress report
* Per unit of gross profit of carbon emissions linked to Use of
Sold Products Scope 3 (Category 11) in 2030.
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Strategic priorities
Revenue in EMEA, mEUR
2026
1
20232022
2021
623
616
586
700-750
1
Target in Business Plan 2026.
EMEA is the largest and most profitable region and
has been identified as an optimization opportunity
in Business Plan 2026. The implementation of a
segmented go-to-market approach is enabling
broader and more efficient market coverage. The
goal is to optimize customer value creation while
increasing commercial efficiency.
During 2023, the groundwork for profitable growth
in the years ahead was laid and the focus remained
firmly on commercial activities and strategy
deployment. One of the areas to expand EMEA
is to execute through two channels: direct sales
to customers and indirect sales to dealers. Both
channels are increasingly focused on high potential
customer segments including Contract Cleaners,
Industry, and Institutions.
In particular, the Institutions business was a key
priority and consequently saw positive momentum
within key retail chains in large markets such as the
UK, Germany, and Türkiye.
Given the challenging economic climate, we saw
declining market demand in the first half of the year,
which stabilized in the second half of the year. As a
consequence, shipped and invoiced volume declined
in 2023 compared with 2022.
Our continued focus on dealers, combined with an
increase in our direct customer channel, will enable
us to leverage our strong position towards 2026.
Alongside the channel focus, the work to grow
service-as-a-business continued as described on
page 21-22.
In 2022, we announced that we would continue
the roll-out of the integrated business model
throughout Europe. This work continued during
2023, ensuring a strong platform to further expand
the leadership position by driving growth and
profitability, particularly within target segments. The
work included establishing the EMEA region, moving
closer to the customer, and empowering local
decision making.
At year-end 2023, the EMEA operating model was
finalized. The model introduces a new market
structure with six similar scaled markets and
clusters leading all commercial activities including
service operations.
This will support growth towards 2026 by
accelerating our service-led development within key
segments such as Contract Cleaners, alongside the
ongoing focus on nurturing our strong relationship
with dealers.
Expand EMEA leadership position
Optimization opportunities
Progress report
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Optimization opportunities
2022 2023 2024 2025 2026
Support growth of large industrials
Line expansion in Brooklyn Park, US plant
Support growth, quality and insource critical production
Expand plastic rotomolding technology across plants
Support regionalization and customer demand
Expand manufacturing for dual production
Support growth and customer demand
Add automation in Hungary
Global supply challenges have over the past two
years stress tested the robustness of our supply
chain. As part of Business Plan 2026, we identified
optimization opportunities that positively impact
cost competitiveness, capacity for growth, as well
as the overall robustness of our supply chain. In
addition, they create the foundation for targeted
volume growth with moderate investments.
The challenges seen in recent years in the global
supply chain and the geopolitical development
have confirmed a need for better risk management
and development of Nilfisk’s supply chain. During
2023, Nilfisk has been working on a series of
initiatives set out in Business Plan 2026. The scope
of the initiatives is to ensure capacity for growth,
strengthen Nilfisk supply chain, and to lower risk.
In 2023, we progressed according to our plans and
focused on capacity growth through extending our
production capacity in our plants in Brooklyn Park,
US, Querétaro, Mexico, and Dongguan, China.
Three initiatives ensure capacity for growth
In Brooklyn Park, US we finalized the line expansion
that was initiated in 2022 to expand production of
large industrials. This has extended our production
capabilities and reduced lead time and backlog at
an overall level improved our delivery performance.
In the long-term, it has put us in the right place for to
ensure capacity for growth.
As part of our efforts to insource critical production
and boost capacity, we installed a third plastic
rotomolding machine at the Querétaro site capable
of producing the plastic exteriors of our products.
The increased capacity reduces the sensitivity to
supply chain disruptions while ensuring high-quality
standards and at the same time cuts costs.
A normalized supply situation globally
The year 2023 saw the realization of several long-
term investments to improve our supply chain
robustness and add to financial performance
towards 2026. There were tangible improvements
to the transportation situation. The global supply
chain constraints eased further and returned to a
pre-pandemic normalized level. Material supply,
which has been a key challenge in recent years, also
saw relief with component availability improving
throughout the year. This led to a full recovery at all
In 2023 the dual production strategy was
implemented with new production lines
incorporated in Querétaro, Mexico and Dongguan,
China to reduce lead-time. Two industrial machines
in high demand – the SC6500 walk-behind and
CS7010 combination machines – are now also
produced in both Mexico and China. The machines
were previously only produced at the Brooklyn Park
site in the US, which could not keep up with the
demand. Consequently, we will continue to bring
down the order backlog.
Enhance supply chain robustness
Progress report
Enhance supply chain robustness plan is well under way towards delivery:
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Optimization opportunities
production sites except for our industrial production
facility in Brooklyn Park, which ended the year with
an elevated order book.
In 2023, Nilfisk also optimized its transportation
setup, yielding improvements for customers
while also ensuring progress within some key
sustainability areas:
• Increased share of direct shipments
• Lead time improved
• Reduction in inventory levels
• Reductions of transportation costs
• Lower emissions from transportation.
Enhancing supply robustness through dual sourcing
In 2023, Nilfisk continued working with the strategy
for dual sourcing to further improve delivery
performance, optimize robustness in production
output, and reduce overall risk. During the year,
Nilfisk made good progress in establishing dual
sourcing for most critical components. With a
number of alternative suppliers, the opportunity for
substitution increases and allows more flexibility.
That means reducing freight dependency and
ensuring that disruptions, whether at macro or micro
level, are less likely to affect the supply chain. The
effort is ongoing and will in the long run reduce
sensitivities to supply chain disruptions and shorten
lead times.
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Optimization opportunities
CASE
A new rotomolding machine has
expanded Nilfisk’s manufacturing
capabilities in Querétaro, Mexico.
Global supply challenges have stress-tested our
supply chain in recent years. To address this, we
invested in optimizing our production capabilities
during 2023 to accommodate our targeted volume
growth towards 2026.
In the fourth quarter of 2023, our manufacturing site
in Querétaro, Mexico, added two new large floorcare
machines to its production lines: the SC650
walk-behind and the CS7010 ride on-machines
that Nilfisk has experienced increasing demand
for. Nilfisk has now established dual production in
the Americas region with this added rotomolding
machine.
As part of the efforts to boost capacity at the
Querétaro site, Nilfisk installed a new rotomolding
machine capable of producing the plastic exteriors
of our products. This increased capacity was initiated
to reduce reliance on external suppliers, ensuring
high-quality standards while reducing costs.
Expanding the manufacturing capabilities by
producing machine components in Querétaro
amplified supply chain robustness. It allowed
Nilfisk to lessen dependence on external suppliers,
resulting in better control and enhanced quality
without relying on third-party sources.
Looking towards the future, the facility in Querétaro
will become an important supplier of rotomolded
components to the Brooklyn Park site. This
streamlined approach aligns with the objectives
outlined in Business Plan 2026, empowering Nilfisk
to respond swiftly and effectively to evolving market
dynamics while enhancing supply chain robustness.
Increased capacity in Querétaro
What is rotomolding?
Rotomolding (rotational molding) is a 4-stage
production process to form hollow parts of
limitless size. The process makes it possible
to produce components of any size or shape.
Rotomolding is done by heating plastic
resins in a mold chamber while rotating
the chamber vertically and horizontally
simultaneously. When the fluid plastic resin
has covered the entire mold chamber, the
plastic component is cooled and demolded.
Nilfisk manufacturing sites in Querétaro,
Mexico, and Dongguan, China, have installed
rotomolders.
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Optimization opportunities
Revenue in Specialty Business, mEUR
1
Target in Business Plan 2026.
2026
1
84-94
20232022
2021
60
66
63
Another of the optimization opportunities identified
in Business Plan 2026 is to unleash the growth of
the Specialty Business. Nilfisk Specialty Business
covers two different areas: Food and Industrial
Vacuum Solutions (IVS).
During 2023, the IVS business was rebuilt as an
individual business unit ready to grow and deliver
specialized knowledge for customized offerings,
training, and support. The focus has been on
product innovation, establishing a product pipeline,
and improving our time to market.
Rebuilding IVS
During 2023, the support structure for IVS was
rebuilt in a stronger IVS Center of Excellence. This
was done to enable Nilfisk to customize products
for highly regulated workplaces such as food
and pharma, while providing delivery times in line
with market standards. In addition, the structure
enables a more extensive service offering to both
internal and external customers. To ensure market
leading innovation within this niche, Nilfisk focused
on investments in product development, product
management, and R&D. The increased focus on
product innovation resulted in a strong pipeline of
product launches at the end of 2023, supporting
growth towards 2026.
Solid progress during year two of executing on IVS
strategy
During 2023, investments were made into a
salesforce specialized within IVS in North America
and the groundwork for focus on new customer
segments as part of Business Plan 2026 was laid.
The new setup enables increased opportunity
creation, and consequently both the number of
leads and bids rose during 2023. The ability to
provide on-time response to the markets from sales
support and the increased ability to customize
equipment via a reduced R&D response time both
serve as strong proof points for the value of a
stronger IVS Center of Excellence.
Unleash growth of Specialty Business
Progress report
What is Food and IVS?
Food is a niche business within the food and beverage segment, offering products that protect
production. The quality of a food-production environment is the basis for guaranteeing workplace
hygiene, employee safety, and product quality. Nilfisk provides solutions with the power of high
performance that ensure safer, healthier, and more efficient manufacturing environments.
IVS is a market leader in a specialized niche within professional vacuum cleaning equipment.
Products are often customized and used in highly-regulated workplaces exposed to dangerous or
combustible dust. Nilfisk stands out as a world-leading manufacturer and service supplier in IVS,
with deep insights and know-how from decades-long experience with products and applications. Key
customer segments for IVS include manufacturing environments within pharma, food, iron, metal,
and construction. The ambition for IVS is 40% revenue growth by 2026 compared to 2021. This is
enabled by leveraging a broad product offering with deep customer understanding and application
know-how.
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Optimization opportunities
Our
business
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Resource inflow
Nilfisk purchases raw materials, components for
machines, parts, accessories, and consumables.
Through good governance practices, Nilfisk seeks to
mitigate negative social and environmental impact.
Customer touchpoints
Touchpoints include Customer Care and Field
Service technicians.
Service and takeback
Nilfisk offers customers comprehensive lifecycle
service solutions to prolong product lifetime by
increasing serviceability. Once the products have
reached the end of life, Nilfisk offers select takeback.
Professional customers
Professional customers range from large global
companies buying fleets to smaller businesses
buying single products.
Business activities
Grounded in science-based sustainability principles,
Nilfisk transforms end-user needs into solutions,
leading to customer-centric innovation and design.
Sales channels
Channels across more than 100 countries include
direct sales, indirect sales through dealers and
retailers, and e-commerce platforms.
Consumers
Consumers are served with a range of vacuum
cleaners and high-pressure washers.
How Nilfisk operates
Through sustainable cleaning solutions that put
people first, Nilfisk enables cleaner environments.
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R&D and OperationsChannelsSolutionsOur customers
Business model
Consumer
Education HealthcareOffices & Public
buildings
Retail Hospitality
AutomotiveAgriculture
Manufacturing PharmaWarehousing
& Logistics
Iron & Metal
Building &
Construction
EducationManufacturingContract cleaners Warehousing
& Logistics
Retail
Food & Beverage
Contract
cleaners
From fleet to
single machine
customers
Our customers range from large
global customers buying fleets of
machines across the product range
to smaller businesses to consumers
that buy a single machine. We work
with our professional customers in
four business verticals covering 14
application segments.
Contract Cleaners and Institutions
This vertical covers Contract Cleaners and Institutions, including
Education, Office & Public Buildings, Retail, Healthcare, and Hospitality.
Optimizing cleaning task efficiency is key as customers in these
segments are facing severe labor shortages alongside increasing
requirements for high-quality cleaning results in public-facing
environments.
Industry
The Industry vertical covers areas like Manufacturing, Warehouse and
Logistics, Food & Beverage, Iron & Metal, Pharma. For customers in
these industries, cleaning is a key element in ensuring efficient and safe
production workflows, proper maintenance of production equipment,
and compliance with quality standards and regulations.
Agriculture, Building & Construction, Automotive
Robust and high-performing cleaning solutions play an important role in
securing safe work conditions in dirty, dusty, and harsh environments.
In addition, it is key to these customers that their essential equipment is
maintained regularly for optimal efficiency.
Consumer
In addition to our professional customer base, Nilfisk also offers
consumers a range of high-pressure washers and vacuum cleaners.
Five focus segments in Business Plan 2026
Business Plan 2026 identified five focus segments with above-
market growth and where Nilfisk is well positioned to gain share.
These segments are Contract Cleaners, Warehouse & Logistics,
Manufacturing, Education, and Retail.
The five focus segments cover about two-thirds of the global market
for professional cleaning equipment.
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Our customers
Providing a wide range of
customer-centric solutions
Nilfisk develops, manufactures, and
sells a comprehensive portfolio of
cleaning solutions and services
targeting the premium and mid-
market for professional cleaning,
complemented by cleaning solutions
tailored to households.
At Nilfisk, innovation and product development
starts with our value proposition 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 (EMEA, Americas, and APAC).
R&D is spread across a total of five locations in
Denmark, Italy, US, and China. In 2023, 3.2% of total
revenue was spent on Research & Development, an
increase from the average level of 2.8% for the years
2020 to 2022.
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
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Solutions
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.
Floorcare
Our largest product line is floorcare, spanning
a wide range of scrubber dryers from small
walk-behinds 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 and a safe environment for end-users
such as employees, students, 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
cannisters and 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.
Service
Easy and quick access to professional service is a
key value proposition for our customers, especially
when they are looking for productivity gains. With
the help of our service technicians, customers
can maximize the efficiency of their cleaning
operations across the entire equipment lifecycle.
Nilfisk offers a comprehensive range of service
solutions. With our strategic focus on building
service-as-a-business, both existing and new
customers are offered service contracts when
relevant for the chosen equipment. The service
contracts provide a combination of preventive
maintenance, needed repairs including parts
and labor, and consumables to ensure optimal
performance.
About 500 Nilfisk Field Service Technicians and an
additional 300 authorized third-party technicians
work within Nilfisk Service Solutions to deliver
service, maintenance and advice. Third-party
technicians are certified by Nilfisk to ensure
consistent service quality across our global
network. Nilfisk Service Business has the largest
coverage in EMEA regions via own Field Service
Technicians, while more third party technicians
are used in Americas and APAC.
In addition to our range of service solutions, Nilfisk
offers spare parts, accessories, and consumables
(PAC) for all product groups.
Nilfisk is also developing new customer-centric
and scalable service solutions in collaboration
with customers where relevant. For example,
Nilfisk Connectivity Portal offers selected
customers an option to monitor and track their
fleet remotely while also providing data to monitor
and enhance productivity.
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 on this
page.
What we do
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Solutions
1,500
40+
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:
EMEA, Americas, and APAC. These employees
support both direct sales to customers and indirect
sales via dealers.
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 including inside
sales 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
account for around 50% of revenue in the EMEA
region.
Indirect sales
Some geographies and customer types are
served by handpicked and validated distributors.
Through an extensive network of dealers, retailers,
and selected distributors, Nilfisk’s products and
Serving our customers through
various channels and touch points
solutions are sold in more than 100 countries.
Indirect sale range from large national exclusive
dealers to smaller vendors selling a variety of
cleaning products and brands. These selected
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 the Americas region, where it
accounts for more than 75% of revenue.
Strategic accounts
Nilfisk takes a strategic partnership approach
to our largest accounts, offering internationally-
coordinated key account management. We offer
individually selected packages of equipment and
autonomous solutions as well as financial solutions
and we take pride in our installation and training
services.
Customer Care
Nilfisk Customer Care teams are in contact with
customers all over the world every day, helping
customers with solutions to problems related to
cleaning equipment or processes. Leveraging the
latest technologies within voice, mail, and digital
communication, Nilfisk Customer Care teams
focus on delivering the highest level of customer
satisfaction and ensuring that doing business
with Nilfisk is as simple as possible. Customer
satisfaction (measured by Relationship Net
Promoter Score (RNPS)) rose in 2023. Customers
reported that satisfaction with delivery performance
improved and that the professionalism of our
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.
salespeople, Customer Care teams, and service
technicians is highly appreciated.
During 2024, Nilfisk further enhanced the experience
for our customers by driving simplification of
processes, enabling our front-line teams to provide
a more proactive and personalized experience for
our customers.
E-commerce
Nilfisk serves customers directly via several
e-commerce platforms, providing enhanced
flexibility for customers to order whenever it suits
them. Within the Professional Business, sales are
focused on the dealer channel and during 2023,
these platforms rose as a share of sales. In 2023,
Nilfisk launched webshops in nine markets with
consumer products selling directly to end-users in
addition to introducing sales via nine marketplaces.
The goal is to ensure an improved online customer
experience while simplifying and globalizing the
digital sales process.
full-time employees
work in our Nilfisk sales force and
sales support function across more
than 40 countries
countries in three regions
Our three regions are: EMEA, Americas,
and APAC region
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Channels
R&D
Nilfisk has concentrated R&D resources and
capabilities in five competence centers strategically
positioned across our regions. The collective
strength of engineers is rooted in their deep insights
into specialized domains, enabling the centers to
serve as the bedrock for the development of both
mechanical and autonomous cleaning machines
as well as new solutions. R&D efforts cover the full
range of applications such as floorcare, vacuum
cleaners, pressure washers, industrial vacuum
solutions, and consumer products. Beyond tangible
products, R&D also actively contributes to the
development of enterprise modules, modular
software, and architectures, enriching our product
ecosystem and shaping the innovation roadmap.
The competence centers provide the R&D teams
with best-in-class facilities comprised of effective
test labs, essential equipment, practical tools,
and design software, aiding the innovation of
R&D and Operations
sustainable products while also serving as hubs for
customer engagement, providing dedicated training
spaces for our sales and service teams.
Operations and manufacturing
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. As part our Business
Plan 2026 optimization, efforts to enhance
supply chain robustness have resulted in the
manufacturing setup changing towards a more
local-for-local setup. This entails sourcing of parts
and components closer to manufacturing sites,
limiting transportation time, as well as reducing
Scope 1 and 2 emissions. Cost-effective sourcing
of components, alongside a comprehensive sales
and operations planning process leading to efficient
manufacturing and distribution, are important value
creation factors for Nilfisk. This enables timely
decisions, scalability, proactive shaping of demand,
and financial predictability, all enhancing supply
chain robustness.
Distribution
The majority of Nilfisk’s product range is shipped
from Nilfisk’s seven Distribution Centers (DC’s), but
an increasing share of products are shipped directly
from the manufacturing sites to our customers.
This is a result of the ongoing focus on improving
the customer experience, reducing carbon emission
and lead-time, and continuously driving for better
solutions and lower costs.
Nilfisk uses sea freight for intercontinental logistics
and trucks for road logistics, seeking to choose the
Innovation is deeply rooted in
Nilfisk’s legacy and instrumental
for the future. Our R&D setup
transforms specialized insights
into roadmaps for products and
solutions. Operations drive planning,
sourcing, logistics, manufacturing,
and quality to ensure that the regions
are supported with finished products
and parts.
more sustainable logistics solution. Consequently,
airfreight has been reduced to less than 1% of total
freight.
As a result of increased complexity in the
international trade landscape, trade compliance
capabilities have been strengthening during 2023
in relation to applicable legal requirements. In
addition, the focus on worker-centric supply chains
and sustainability continued to impact compliance
procedures and priorities.
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ChannelsSolutionsOur customersBusiness model
R&D and Operations
9 5 7
New regional structure ensuring customer
proximity
After establishing Americas as a region in 2022,
Nilfisk established both EMEA and APAC as regions
in 2023. The purpose of the regional structure is to
ensure that decision-making is anchored close to
customers, enabling responsiveness and customer
centricity.
The regional leaders are accountable for the
regional P&L and coordinate the day-to-day activities
across marketing, sales, and service. Operations are
responsible for planning, sourcing, manufacturing,
logistics, and Environmental, Health and Safety
matters to ensure that the regions are supported
with finished products and parts.
Manufacturing sites
R&D facilities
Brooklyn Park (MN, US)
Fort Pierce (FL, US)
Redlands (CA, US)
Querétaro (Mexico)
Sziget (Hungary)
Nagykanizsa (Hungary)
Aalborg (Denmark)
Zocca (Italy)
Dongguan (China)
Brooklyn Park (MN, US)
Hadsund (Denmark)
Zocca (Italy)
Dongguan (China)
Suzhou (China)
Springdale (AR, US)
Morgantown (PA, US)
Ghent (Belgium)
Tarragona (Spain)
Trollhättan (Sweden)
Horsens (Denmark)
Shanghai (China)
Distribution facilities
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ChannelsSolutionsOur customersBusiness model
R&D and Operations
Our
results
For 2023, Nilfisk delivered an acceptable set of results. Demand for
our products was muted in Americas and EMEA, while APAC grew.
The company made good progress executing our strategic Business
Plan 2026, with solid improvements across several financial metrics
including gross margin, cash flow, net interest-bearing debt, and
gearing. For the year, we realized total revenue of 1,033.6 mEUR
and an organic growth of -0.3%, driven positively by growth in the
Service Business which remained strong. EBITDA before special
items amounted to 132.4 mEUR corresponding to an EBITDA margin
before special items of 12.8%. EBITDA amounted to 123.1 mEUR,
corresponding to an EBITDA margin of 11.9%.
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Our governanceOur businessOur strategy2023 in brief Our results
2022
2023
7%
6%
Consumer
59%
6%
6%
Specialty
28%
59%
Professional
29%
Service
Business performance
Revenue
2023 in brief
1,033.6 mEUR -0.3%
Revenue
Total revenue declined -3.4%, driven
by muted demand for products
across categories. Demand for
services remained solid, while price
management across the business
supported revenue.
Organic growth
Service delivered growth. Professional
and Specialty declined. Consumer
declined for the year, but grew in the
second half of 2023.
123.1 mEUR
EBITDA
corresponding to an EBITDA margin
of 11.9%.
132.4 mEUR
EBITDA before special items
corresponding to an EBITDA margin
before special items of 12.8%.
61.2 mEUR9.9 mEUR
Special items
mainly related to structural efficiency
measures and restructuring in
connection with the implementation
of Business Plan 2026.
Operating profit
corresponding to an operating profit
margin of 5.9%.
139.6 mEUR
Working capital
corresponding to a working capital
ratio of 17.8% measured on a rolling 12
months basis.
143.0 mEUR
Operating cash flow
up by 61.0 mEUR compared to the prior
year. Free cash flow came to 115.2
mEUR, an increase of 60.7 mEUR from
lower working capital.
EUR million Revenue 2023 Revenue 2022
Organic
growth 2023 Other
Impact of foreign
exchange rates Total growth
Professional 603.6 636.7 -1.8% -0.3% -3.1% -5.2%
Service 302.4 294.4 5.5% -0.2% -2.6% 2.7%
Specialty 62.6 65.7 -2.6% -0.1% -2.0% -4.7%
Consumer 65.0 72.7 -8.9% - -1.7% -10.6%
Total 1,033.6 1,069.5 -0.3% -0.2% -2.9% -3.4%
Revenue and organic growth by operating segments
New segments
From Q1 2023, Nilfisk has been operating with a new financial reporting structure, providing revenue, gross profit, and EBITDA by segment.
The segmentation supports the strategic direction by reporting on segments that are growth platforms in Business Plan 2026.
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Financial review Q4 Performance Quarterly overview
Business performance
Floorcare Vacuum
cleaners
High-
pressure
washers
Private
Label
64% 16% 13%
7%
Floorcare Vacuum
cleaners
High-
pressure
washers
Private
Label
62% 16%
8%
14%
Professional Business
In 2023, the Professional Business faced headwinds
in EMEA and Americas as the continued slowing
of the economy and market dynamics negatively
impacted underlying demand. Meanwhile, APAC
delivered solid growth compared to 2022.
Total revenue amounted to 603.6 mEUR compared
to 636.7 mEUR in 2022 corresponding to
reported growth of -5.2%. The effect of foreign
exchange rates was -3.1% while other was -0.3%
predominantly driven by the liquidation of our
business in Russia. Consequently, organic growth
for the full year came to -1.8%.
Excluding Private Label, which declined 17.3%, the
organic growth was flattish year over year at -0.4%.
The floorcare and vacuum product categories
performed stronger, while the high-pressure washer
and Private Label products negatively impacted
organic growth for the professional business.
The negative organic growth was related to the
general economic slowdown in EMEA, however
there were still some countries delivering positive
organic growth including the UK, Türkiye, and
Portugal. Market conditions impacted North
America negatively in the second half of 2023. This
was partly offset by growth in APAC and LATAM,
supported by price management across all the three
regions.
Gross profit for the Professional Business amounted
to 232.0 mEUR, equal to an increase of 2.7 mEUR
from 2022. This corresponded to a solid expansion
of the gross margin to 38.4% compared to 36.0% in
2022. The gross margin improvement was driven by
strong price management to actively mitigate cost
inflation on raw materials and labor rate increases,
alongside the lower volumes. A favorable mix of
higher floorcare sales and lower freight costs also
benefited the margin.
Overhead costs were 201.7 mEUR in 2023. The
cost decrease of 2.5 mEUR was driven primarily
by FX effects partially offset by a mixture of sales
activity-related costs and merit increases across
the organization. Strict cost management mitigated
the negative organic growth leading to a stable
overhead cost ratio year over year of 33.4%, 1.3
percentage point higher than 32.1% in 2022.
As a result, the EBITDA before special items came
to 69.1 mEUR, 5.8 mEUR higher than 2022, leading
to an EBITDA margin before special items of 11.4%,
compared to 9.9% in 2022.
Financial highlights
603.6 mEUR 69.1 mEUR-1.8%
Revenue EBITDA before special itemsOrganic growth
59% 38.4% 11.4%
Share of total revenue Gross margin EBITDA margin bsi
The Professional Business covers all
professional machines (floorcare, vacuum
cleaners and high-pressure washers)
including Private Label.
Revenue share by product category 2023
Revenue share by product category 2022
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Financial review Q4 Performance Quarterly overview
Business performance
41% 59%
Field Service
PAC
40% 60%
Field Service
PAC
Financial highlightsService Business
302.4 mEUR 72.9 mEUR5.5%
Revenue EBITDA before special itemsOrganic growth
29% 44.4% 24.1%
Share of total revenue Gross margin EBITDA margin bsi
Following the same trend as in 2022, the Service
Business provided the highest growth across
our business segments. The strategic priority
in Business Plan 2026 to ‘Develop service-as-
a-business’ remained a key focus area and
consequently, the Service Business continued to
deliver a solid performance in 2023.
Revenue amounted to 302.4 mEUR in 2023
compared to 294.4 mEUR in 2022, corresponding
to a reported growth of 2.7%. The effect of foreign
exchange rates was -2.6% while Other was -0.2%,
leading to an underlying organic growth for the full
year of 5.5%. The Service Business growth was
driven by price management, solid market demand
and the execution of our strategic initiatives within
Business Plan 2026. Field Service drove growth
in the Service business, while revenue from parts,
accessories, and consumables declined in line with
the lower demand for professional products.
Gross profit for the Service Business amounted
to 134.4 mEUR in 2023, up from 133.4 mEUR
in 2022. The gross margin came to 44.4%, 0.9
percentage point lower than the level of 45.3% in
2022. Price management supported gross profit,
but unfavorable business mix and cost inflation
on labor and raw materials caused a gross profit
margin decline.
Overhead costs were 78.9 mEUR, an increase of
6.2 mEUR compared to 2022. The increase was
primarily driven by investments into Business Plan
2026 initiatives combined with merit increases,
which increased the overhead cost ratio to 26.1%,
1.4 percentage point higher than 24.7% in 2022.
The EBITDA before special items came to 72.9
mEUR, 5.5 mEUR lower than in 2022. The EBITDA
margin before special items landed at 24.1%, 2.5
percentage points lower than the level in 2022.
Revenue share by service category 2023
The Service Business contains a
comprehensive range of service solutions
throughout the lifecycle of our professional
cleaning equipment. It captures field service
offerings, including managed service
packages and Parts, Accessories and
Consumables (PAC) for the Professional
Business and IVS.
Revenue share by service category 2022
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Financial review Q4 Performance Quarterly overview
Business performance
Specialty Business Consumer Business
In 2023, the Specialty Business faced headwinds
in EMEA and North America, while APAC delivered
very strong growth. The continued slowing of the
economy in EMEA and market dynamics in North
America resulted in a decline in demand for large
and specialized cleaning solutions. The very strong
growth in APAC was driven by Australia, Thailand,
and China.
Total revenue amounted to 62.6 mEUR, 3.1 mEUR
lower than 2022, corresponding to reported
growth of -4.7%. Foreign exchange rates negatively
impacted the result by -2.0% while Other affected
by -0.1%, leading to an underlying organic growth of
-2.6%.
Gross profit amounted to 33.2 mEUR in 2023, down
from 34.8 mEUR in 2022 corresponding to a gross
margin of 53.0%, unchanged compared to 2022. The
strong pricing management was able to mitigate the
The Consumer Business was impacted by weak
consumer sentiment in the first half of 2023. This
was driven by high inflation and declining consumer
confidence. In the second half of the year, the
Consumer Business returned to growth, driven by a
low baseline from 2022 and a return of consumer
spending in the market.
Revenue from the Consumer Business was 65.0
mEUR, compared to 72.7 mEUR in 2022, resulting
in reported growth of -10.6%. Organic growth
amounted to -8.9% and was driven by a slowdown
in most markets across EMEA, with the UK,
France, and the Nordics seeing the larger impacts.
In addition, Nilfisk distribution partners in retail
markets generally reduced inventory levels, which
negatively impacted the sell-in volume.
Gross profit was lower by 1.6 mEUR from 24.5
mEUR in 2022 to 22.9 mEUR in 2023. Gross margin
cost inflation seen in labor rate increases, alongside
the lower volumes.
Overhead costs were 15.2 mEUR, a moderate
decline of 0.2 mEUR compared to last year. Prudent
cost management offset merit increases. EBITDA
before special items came to 20.2 mEUR compared
to 21.3 mEUR in 2022, driven by the negative organic
growth. The EBITDA margin before special items
remained flat to last year at 32.3% compared to
32.4% in 2022.
increased by 1.5 percentage point to 35.2% in 2023,
from 33.7% in 2022, driven mainly by lower freight
costs.
Overhead cost was 21.2 mEUR in 2023, 2.5 mEUR
lower than in 2022. The reduction was primarily
driven by strong cost management coupled with
lower activity levels, including lower warehousing
costs. EBITDA before special items was flat to last
year at 4.5 mEUR with the EBITDA margin improving
to 6.9% of revenue compared to 5.9% in 2022.
The Specialty Business covers IVS and
Nilfisk Food. Service and PAC are included
for Nilfisk Food.
The Consumer Business covers consumer
machines, service, and PAC related to
consumer products.
Financial highlights
62.6 mEUR 20.2 mEUR-2.6%
Revenue EBITDA bsiOrganic growth
Financial highlights
65.0 mEUR 4.5 mEUR-8.9%
Revenue EBITDA bsiOrganic growth
6% 32.3%53.0%
Share of total revenue EBITDA margin bsi
6% 6.9%35.2%
Share of total revenue EBITDA margin bsi Gross margin Gross margin
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Financial review Q4 Performance Quarterly overview
Business performance
EMEA region
Americas region
APAC region
8%
57%
35%
Regions
EMEA
Revenue in the EMEA region amounted to 585.6
mEUR, a decline from 616.1 mEUR in 2022, as
there was muted demand across the region. This
corresponded to negative organic growth of 2.5%
in 2023. Central and northern Europe saw volume
decline while south remained relatively flat. Across
EMEA, price management mitigated part of the
negative volume growth.
Americas
Revenue in the Americas region amounted to 365.9
mEUR, a decrease of 7.3 mEUR from 373.2 mEUR
in 2022, corresponding to organic growth of 1.4%
in 2023. Growth was driven by LATAM, which saw
strong performance throughout the year, driven
by both higher volumes and price management.
North America saw negative organic growth as
demand weakened in the second half of the year
from market dynamics, resulting in negative volume
growth.
APAC
Revenue from the APAC region amounted to 82.1
mEUR in 2023, an increase from 80.2 mEUR in
2022. Organic growth was strong at 8.3% in 2023,
driven by continued strong demand in Australia and
New Zealand. In addition to growth in the Pacific,
China also contributed significantly to the growth
as the country benefited from the re-opening after
COVID-19 related lockdowns affecting 2022.
Share of revenue 2023
Regions
Revenue (mEUR) and organic growth (%) by region
EUR million Revenue 2023 Revenue 2022 Organic growth 2023
EMEA 585.6 616.1 -2.5%
Americas 365.9 373.2 1.4%
APAC 82.1 80.2 8.3%
Total 1,033.6 1,069.5 -0.3%
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Financial review Q4 Performance Quarterly overview
Business performance
Total growth
-3.4%
1,069.5
mEUR
2022 Organic
growth
2023
-0.3% -0.2%
-2.9%
1,033.6
mEUR
Foreign
exchange
Other
Financial
review for the
total business
Revenue
In 2023, total revenue for Nilfisk amounted to
1,033.6 mEUR compared with 1,069.5 mEUR in
2022, corresponding to a reported growth of -3.4%.
Foreign exchange rates had a negative impact of
2.9%, driven mainly by movements in USD. Other
had a negative impact of 0.2%, predominantly
driven by the liquidation of our business in Russia.
Consequently, organic growth for 2023 was
-0.3%, in line with the narrowed outlook for an
organic revenue growth of around 0% provided on
November 16, 2023.
The Service Business delivered strong organic
growth of 5.5%, while the Professional, Specialty
and Consumer Businesses declined organically by
1.8%, 2.6% and 8.9% respectively.
Gross profit
Gross profit for the total business amounted to
422.5 mEUR in 2023 compared to 422.0 mEUR in
2022. The gross margin increased to 40.9%, 1.4
percentage point higher than in 2022, where it
was 39.5%. The gross margin improvement was
driven by strong price management mitigating cost
inflation on raw materials and labor, alongside the
lower volumes. A favorable product mix and lower
freight costs also benefited the margin.
Overhead costs and ratio
Overhead costs landed at 351.4 mEUR, an increase
of 8.9 mEUR compared to 2022. The increase was
due to merit increases, selected investments in our
growth platforms in line with Business Plan 2026,
and general inflationary pressures. The increase
was partially offset by the effects of structural
efficiency measures implemented in Q2 2023.
The overhead cost ratio increased to 34.0%, also
reflecting the revenue decline.
EUR million 2023 2022
Revenue 1,033.6 1,069.5
Gross profit 422.5 422.0
Overhead costs 351.4 342.5
EBITDA before special items 132.4 140.8
Profit for the period 35.3 40.6
Financial ratios:
Organic growth
-0.3% 4.9%
Gross margin 40.9% 39.5%
EBITDA margin before special
items 12.8% 13.2%
Overhead costs ratio 34.0% 32.0%
CAPEX ratio 3.0% 2.5%
Total R&D spend increased by 2.3 mEUR compared
to 2022 to 33.1 mEUR, equivalent to 3.2% of
total revenue in 2023. The increase was driven
by investments in modular platforms and a new
product pipeline. These are all related to the
strategic priority ‘Lead with sustainable products’
within Business Plan 2026.
Out of the total R&D spend, 16.2 mEUR was
recognized as an expense in the income statement
compared to 18.4 mEUR in 2022, while 16.9 mEUR
was capitalized compared to 12.4 mEUR in 2022.
In addition to expensed costs, total reported R&D
costs for 2023 were 27.5 mEUR, compared to
31.2 mEUR in 2022. This included amortization,
depreciation, and impairment of 11.3 mEUR,
compared to 12.8 mEUR in 2022.
Sales and distribution costs increased by 8.2 mEUR
to 251.7 mEUR driven by increased staff costs
from general merit increases, travel costs, and
increased facility expenses as activity levels in the
US Distribution Center returned to normal following
the tornado incident in 2022.
Administration costs rose to 74.6 EUR compared to
70.1 mEUR in 2022, driven primarily by increased
staff costs in Hungary and Mexico due to merit
increases, inflationary pressures, and investments in
Business Plan 2026.
Other operating income/expenses was a net income
of 2.4 mEUR compared to a net income of 2.3
mEUR in 2022.
EBITDA before special items and EBITDA
EBITDA before special items amounted to 132.4
mEUR in 2023, corresponding to an EBITDA margin
before special items of 12.8% compared to 13.2%
in 2022. The EBITDA margin before special items
was in line with the narrowed outlook for 2023 of an
EBITDA margin before special items of around 13%
provided on November 16, 2023. The impact of the
revenue decline in Q4 2023 coupled with a strong
gross margin and cost control management led to
a small decline in the EBITDA margin before special
items of 0.4 percentage point from 2022.
EBITDA amounted to 123.1 mEUR, down from 133.3
mEUR in 2022. The EBITDA margin declined by
0.6 percentage point to 11.9%, driven by the lower
revenue.
Operating profit before special items and
operating profit
Operating profit before special items amounted to
71.1 mEUR compared to 79.5 mEUR in 2022. This
corresponds to an operating profit margin before
special items of 6.9% compared to 7.4% in 2022.
Operating profit came to 61.2 mEUR compared to
69.6 mEUR in 2022. Consequently, the operating
profit margin declined to 5.9% from 6.5% in 2022.
The decrease was driven by lower operating profit
and lower revenue compared to 2022.
Special items
Special items net amounted to 9.9 mEUR in
line with 2022. Special items for 2023 were
mainly redundancy and advisory costs incurred
in connection with the continued execution of
Business Plan 2026 alongside the implementation
of structural efficiency measures initiated at the
end of the first half of 2023. Special items in 2022
EUR million 2023 2022
Total R&D spend 33.1 30.8
Expensed in the P&L 16.2 18.4
Capitalized 16.9 12.4
R&D ratio (% of revenue) 3.2% 2.9%
Expensed R&D spend 16.2 18.4
Amortization, depreciation and
impairment 11.3 12.8
Total R&D expenses
1
27.5 31.2
1
Excluding special items.
Revenue growth
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Q4 Performance Quarterly overviewBusiness performance
Financial review
Operating profit
mEUR
Profit for the year
mEUR
2022
61.2
35.3
69.6
40.6
2023 20232022
of 9.9 mEUR were mainly related to the liquidation
of Nilfisk Russia as well as restructuring costs in
connection with the implementation of Business
Plan 2026.
Details on special items are described in Note 2.4 -
Special items.
Financial items
Net financial items amounted to an expense of
14.7 mEUR in 2023 compared to an expense of
17.0 mEUR in 2022. The decrease in net financial
expenses was a combination of higher interest
expenses and foreign exchange losses mainly from
South American currencies from a depreciating
USD rate, offset by income of 9.6 mEUR from the
realization of a 2-year interest cap instrument.
Tax on profit for the year
Tax on profit for the year was a cost of 12.0 mEUR
compared to 14.0 mEUR in 2022. Tax on profit for
the year 2023 was related primarily to current tax
on profit of 17.2 mEUR partly offset by adjustment
of current and prior years’ deferred tax of -5.2
mEUR. In 2022, tax on profit for the year was related
primarily to current tax on profit of 23.4 mEUR and
adjustment of current and prior years’ deferred tax
of -9.4 mEUR.
The effective tax rate for 2023 was 25.4% compared
to 25.6% in 2022.
Nilfisk has early adopted the EU Directive’s
requirement for Country-by-Country reporting, which
can be found in the Sustainability report.
Profit for the year
Profit for the year amounted to 35.3 mEUR
compared to a profit of 40.6 mEUR in 2022.
Working capital
At the end of 2023, working capital was 139.6
mEUR, a reduction of 62.5 mEUR compared to 2022.
The decrease was driven mainly by a reduction
in operating working capital primarily from lower
inventories and trade receivables.
Inventories amounted to 200.5 mEUR, a decrease
of 19.7 mEUR from 2022 driven by inventory
management and bringing down safety stock
levels to a more normalized level. Inventory days
increased slightly compared to 2022.
Trade receivables were 28.0 mEUR lower than same
time last year and amounted to 138.7 mEUR at the
end of 2023. The decrease was a combination of
lower sales activity, especially in North America, and
the non-recourse factoring program of 33.7 mEUR
at the end of 2023 compared to 21.1 mEUR at the
end of 2022. Days sales outstanding were notably
reduced compared to 2022 across several markets.
Trade payables increased by 10.3 mEUR and came
to 123.5 mEUR related to timing in payments.
Other current receivables decreased by 5.8 mEUR
mainly from 2022 being impacted by insurance
receivables for the US Distribution Center. Please
also see Note 8.3 contingent liabilities, securities
and contractual obligations.
Other current liabilities decreased by 1.0 mEUR
primarily related to a decrease in freight payables
from lower freight rates.
The 12-month average working capital ratio came
to 17.8% at the end of 2023. The decrease of 3.8
percentage points compared to 2022 was driven by
the reduction in operating working capital.
Capital employed and RoCE
As of December 31, 2023, capital employed
amounted to 527.2 mEUR, a decrease of 58.2
mEUR compared to 2022. The decrease in capital
employed was significantly driven by the above-
mentioned development in working capital.
The return on capital employed was 12.7%, 0.7
percentage point lower than for 2022 due to the
decrease in operating profit.
Cash flow
Cash flow from operating activities amounted to a
net inflow of 143.0 mEUR compared to a net inflow
of 82.0 mEUR in 2022. The development was driven
primarily by inflow from changes in working capital,
including an increased contribution from factoring
of 12.6 mEUR. Higher net outflow from financial
items and tax impacted negatively.
Cash flow from investing activities for 2023
amounted to a net cash outflow of 27.8 mEUR,
corresponding to an increase of 0.3 mEUR
compared to 2022. The increase was a combination
of investments into strategic R&D projects and
investments and profit from sale of a building.
Free cash flow increased by 60.7 mEUR compared
to 2022 and amounted to 115.2 mEUR.
Equity
Equity was 275.0 mEUR at the end of 2023
against 260.7 mEUR at the end of 2022. Equity
was positively impacted by the reported profit for
the year, partly offset by other adjustments. Other
adjustments were driven by foreign exchange rate
loss adjustments, value adjustments from hedging,
and a share option program decrease deriving from
realization of the 2020 performance share program.
Net interest-bearing debt
At the end of 2023, total net interest-bearing
debt stood at 252.2 mEUR, down by 72.5 mEUR
compared to end of 2022, mainly driven by the
decrease in working capital.
The financial gearing at the end of the year was 1.9x
versus 2.3x at the end of 2022.
Events after the balance sheet date
On January 26, 2024, the Court ruled in favor of
Nilfisk in relation to the lawsuit filed against Nilfisk
with respect to the insurance payout for the tornado
destruction of the US Distribution Center. For further
information, please refer to Note 8.3 Contingent
liabilities, securities, and contractual obligations.
Other than as set out above, we are not aware
of events subsequent to December 31, 2023
that materially affect the assessment of the
consolidated financial statements.
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Q4 Performance Quarterly overviewBusiness performance
Financial review
Total growth
-6.4%
270.3
mEUR
2022 Organic
growth
2023
-2.9% 0.0% -3.5%
252.9
mEUR
Foreign
exchange
Other
Q4 performance
Revenue
In Q4 2023, total revenue amounted to 252.9
mEUR corresponding to a reported decline of -6.4%
compared to revenue of 270.3 mEUR in Q4 2022.
Organic growth was -2.9%, with a negative foreign
exchange effect of -3.5%. The negative impact
on reported growth was predominantly driven by
market headwinds in the US and Canada. This
was partially offset by growth in APAC while EMEA
delivered flattish growth.
In the Professional Business, organic growth was
negative at 6.1%, impacted by muted demand in
North America and EMEA, partially offset by price
management across the regions. APAC delivered
solid organic growth of 3.2% in the Professional
Business, primarily driven by demand in China,
Japan and Australia.
Revenue from the Service Business grew 1.0%
organically compared to Q4 2022. Growth was
driven by price management and the increased
focus on growing Field Service, which was partially
offset by lower PAC sales impacted by lower
demand for equipment.
In the Specialty Business, organic growth was 0.7%
in Q4 2023, supported by overall price management.
This was partially offset by muted demand across
regions, particularly Americas.
The Consumer Business delivered very strong
organic growth of 11.8%, driven by a continued
return of consumer demand combined with price
management. The organic growth was visible
across EMEA with Denmark and Germany as the
strongest contributors.
EUR million Q4 2023 Q4 2022
Revenue 252.9 270.3
Gross profit 105.6 108.1
Overhead costs 86.3 84.7
EBITDA before special items 35.1 39.5
Profit for the period 7.6 11.8
Financial ratios:
Organic growth
-2.9% 2.3%
Gross margin 41.8% 40.0%
EBITDA margin before special
items 13.9% 14.6%
Overhead costs ratio 34.1% 31.3%
CAPEX ratio 4.3% 3.3%
-2.9%
252.9
Revenue in Q4 2023, mEUR
Organic growth
Gross profit
Gross profit was 105.6 mEUR in 2023, a decrease of
2.5 mEUR from 2022. The gross margin was 41.8%,
1.8 percentage points higher than in Q4 2022. The
increase in margin was driven by price management
offsetting raw material and labor cost increases.
Lower freight rates versus the prior year also
benefited the gross margin.
Overhead costs and ratio
Overhead costs increased by 1.6 mEUR compared
to Q4 2022 and amounted to 86.3 mEUR,
corresponding to an overhead cost ratio of 34.1%,
2.8 percentage points higher than in Q4 2022. The
increase was driven by merit increases combined
with investments in Business Plan 2026 initiatives,
partially offset by the effects of structural cost
efficiency measures initiated in the second quarter
of 2023.
EBITDA before special items and EBITDA
EBITDA before special items came to 35.1 mEUR,
4.4 mEUR lower than Q4 2022. The decrease was
due to the muted demand, predominantly in North
America. As a result, the EBITDA margin before
special items was 13.9%. EBITDA came to 32.8
mEUR, corresponding to an EBITDA margin of 13%.
Revenue growth
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Financial review Quarterly overviewBusiness performance
Q4 Performance
Quarterly
overview
EUR million Q4 2023 Q3 2023 Q2 2023 Q1 2023 Q4 2022
Income statement
Revenue
252.9 247.8 276.5 256.4 270.3
EBITDA before special items
35.1 31.2 38.0 28.1 39.5
EBITDA
32.8 30.1 34.1 26.1 38.7
Operating profit before special items
19.3 15.7 22.9 13.2 23.4
Operating profit
16.9 14.4 18.9 11.0 22.5
Special items, net
-2.4 -1.3 -4.0 -2.2 -0.9
Financial items, net
-6.6 -6.7 3.7 -5.1 -7.4
Profit for the period
7.6 5.8 17.3 4.6 11.8
Cash flow
Cash flow from operating activities
43.0 36.0 43.6 20.4 57.1
Cash flow from investing activities
-10.8 -6.2 -3.5 -7.3 -8.7
— hereof investments in property, plant and equipment
-2.8 -2.0 -1.6 -2.2 -3.9
— hereof investments in intangible assets
-8.0 -5.8 -4.2 -4.4 -5.1
Free cash flow excluding acquisitions and divestments
32.2 29.8 40.1 13.1 48.4
Statement of financial position
Total assets
814.0 826.8 843.4 855.0 863.4
Group equity
275.0 275.6 265.1 260.8 260.7
Working capital
139.6 165.6 179.6 197.5 202.1
Net interest-bearing debt
252.2 271.1 291.5 317.9 324.7
Capital employed
527.2 546.7 556.5 578.7 585.4
Financial ratios and employees
Organic growth -2.9% -0.7% 4.3% -2.0% 2.3%
Gross margin
41.8% 41.2% 40.4% 40.2% 40.0%
EBITDA margin before special items
13.9% 12.6% 13.7% 11.0% 14.6%
EBITDA margin
13.0% 12.1% 12.3% 10.2% 14.3%
Operating profit margin before special items
7.6% 6.3% 8.3% 5.1% 8.7%
Operating profit margin
6.7% 5.8% 6.8% 4.3% 8.3%
Financial gearing
1.9 2.0 2.2 2.4 2.3
Overhead costs ratio
34.1% 34.9% 32.1% 35.1% 31.3%
CAPEX ratio
4.3% 3.1% 2.1% 2.6% 3.3%
Working capital ratio
17.8% 19.4% 20.9% 21.9% 21.6%
Return on Capital Employed (RoCE)
12.7% 13.0% 12.4% 11.7% 13.4%
Basic earnings per share (EUR)
0.28 0.21 0.64 0.17 0.44
Diluted earnings per share (EUR)
0.28 0.21 0.64 0.17 0.44
Number of full-time equivalents, end of period
4,698 4,681 4,697 4,684 4,655
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Financial review Q4 PerformanceBusiness performance
Quarterly overview
Our governanceOur results
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.
Our
governance
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Board of Directors Nilfisk Leadership Team Risk management Shareholder information
Corporate governance
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Board of Directors Nilfisk Leadership Team Risk management Shareholder information
Corporate governance
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Board of Directors Nilfisk Leadership Team Risk management Shareholder information
Corporate governance
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Nilfisk Leadership Team Risk management Shareholder information
Board of DirectorsCorporate governance
Board of Directors
Peter Nilsson
Chair, Born 1962
Independent
Bengt Thorsson
Deputy Chair, Born 1964
Independent
René Svendsen-Tune
Member, Born 1955
Non-independent
Jutta af Rosenborg
Member, Born 1958
Independent
First elected in March 2022 March 2023 October 2017 October 2017
Expiry of current term March 2024 March 2024 March 2024 March 2024
Core competencies • Executive management
• Management of listed companies
• Application of business models and value chains,
including service and aftermarket
• International management
• Business and service transformation
• Mergers and Acquisitions
• International management
• Management of listed companies
• Service businesses
• Large account sales
• International management
• Management of listed companies
• Finance and business optimization
Committees • Nomination Committee
• Remuneration Committee
N/A • Nomination Committee • Audit Committee
Selected positions and directorships • Chair of the board of directors of Lindab Group
• Deputy chair of Creaspac AB
• Member of the board of directors of Cavotec SA
• CEO and President of Permobil Group
• Chair of the board of directors of GoodSolutions AB
• Deputy chairman of the board of directors of NKT
A/S
• Chair of the board of directors of Stokke A/S and
Asetek A/S
• CEO of Nilfisk Holding A/S
• Member of the board of directors and chair of the
Audit Committee of JPMorgan European Growth
& Income plc, BBGI Global Infrastructure S.A., RIT
Capital Partners plc
Education • MSc in Business and Economics • BSc in Business Administration • BSc Eng. (hon.) • MSc in Business Economics and Auditing
Nilfisk shares end of 2023
1
40,104 (27,104) 0 (0) 11,501 (4,000) 8,000 (0)
1
End of 2022 in parenthesis.
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Nilfisk Leadership Team Risk management Shareholder informationCorporate governance
Board of Directors
Board of Directors
Are Dragesund
Member, Born 1975
Non-independent
Franck Falezan
Member, Born 1971
Non-independent
Ole Kristian Jødahl
Member, Born 1971
Independent
Viveka Ekberg
Member, Born 1962
Independent
First elected in June 2020 June 2020 March 2023 March 2023
Expiry of current term March 2024 March 2024 March 2024 March 2024
Core competencies • M&A and capital markets
• Restructuring and profit improvement
• Strategy and organization
• Strategy,
• Restructuring
• Finance
• Executive management, strategic and operational
• Management of leading global industrial companies
• Acquisitions, integrations, distribution and service
business
• Strategy development, change management and
profit improvement across multiple industries
• Leading audit committees; financial and risk
management, reporting and control
• Capital markets, financial analysis and investments
Committees • Remuneration Committee • Nomination Committee N/A Audit Committee
Selected positions and directorships • Co-Head Ferd Capital, Ferd AS
• Member of the board of directors of
Mestergruppen A/S, Leroy Seafood Group ASA and
Brav AS
• Founder and Managing Partner at PrimeStone • President and CEO of Alimak Group AB
• Member of the board of directors of Alimak
Group AB
• Member of the board and chair of the audit
committee of AutoStore Holdings Ltd, Lindab
International AB, and Dellner Couplers Group AB
Education • MsC Economics and Business Administration • Master in Business Administration • Economics studies at NHH, Norwegian School
of Economics
• MSc in Accounting & Finance and International
Business
Nilfisk shares end of 2023
1
0 (0) 0 (0) 4,000 (0) 9,500 (0)
1
End of 2022 in parenthesis.
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Nilfisk Leadership Team Risk management Shareholder informationCorporate governance
Board of Directors
Board of Directors
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 2018 March 2022 March 2022 March 2022
Expiry of current term March 2026 March 2026 March 2026 March 2026
Position at Nilfisk • Customer Care Representative
• Joined Nilfisk in 1990
• Director, Architecture & Technology
• Joined Nilfisk in 2012
• Director, Operations Strategy & Program
Management Office
• Joined Nilfisk in 2015
• Enterprise Architect
• Joined Nilfisk in 1999
Committees N/A N/A N/A N/A
Selected positions
and directorships
• Owner of Mågaard I/S
• Member of the board of Sem Vandværk
N/A • Daily Manager of the Occupational, Health & Safety
team at Nilfisk head office sites, board member in
the staff association at Nilfisk, and member of the
European Works Council (representing Denmark)
• Voluntarily board member in Save the Children
Denmark (Capital Region)
• Board Member in the staff association at Nilfisk
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 2023
1
210 (210) 130 (30) 145 (145) 32 (32)
1
End of 2022 in parenthesis.
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Nilfisk Leadership Team Risk management Shareholder informationCorporate governance
Board of Directors
Nilfisk Leadership Team
René Svendsen-Tune
President & CEO
Member of the Executive Management Board
Reinhard Mayer
Executive Vice President & CFO
Member of the Executive Management Board
Siam Schmidt
Executive Vice President
People, Organization & Culture
Hans Flemming Jensen
Executive Vice President
Strategy & Specialty Business
Joined Nilfisk 2017 (Board of Directors) / 2023 (CEO) 2021 2022 2017
Core competencies • International management
• Management of listed companies
• Service businesses
• Large account sales
• International finance
• IT
• Legal and compliance
• Supply chain
• M&A
• Development of people, organization and culture
• Diversity, equity & inclusion (DE&I)
• Environment, health, and safety (EHS)
• M&A
• Transformations
• Organizational leadership
• Transformations
• Business strategy design and execution
• M&A, business development, partnerships, and
corporate ventures
Positions and directorships • Deputy chair of the board of directors of NKT A/S
• Chair of the board of directors of Stokke A/S,
Asetek A/S and GN Foundation
• Member of the board of directors of Nilfisk
Holding A/S
N/A N/A • Board member, Thoro.ai (US)
Previous positions • GN Store Nord
• Nokia
• Getinge AB
• Hansgrohe SE
• Novo Nordisk
• Leo Pharma A/S
• Kromann Reumert
• NKT Holding A/S
Education • BSc Eng. (hon.) • BSc in Business Engineering from Karlsruhe
University of Applied Sciences
• MSc of Arts in Communications and Organizational
Development from Aalborg University
• Master of Laws, University of Copenhagen
Nilfisk shares end of 2023
1
11,501(4,000) 25,569 (13,869) 4,250 (2,000) 5,082 (735)
1
End of 2022 in parenthesis.
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Board of Directors Risk management Shareholder informationCorporate governance
Nilfisk Leadership Team
Nilfisk Leadership Team
Camilla Ramby
Executive Vice President
Marketing, CSR & Consumer Business
Jamie O’Neill
Executive Vice President
Americas Region
Christopher Riau
Executive Vice President
EMEA Region & Service Business
Thomas Dragø Nielsen
Executive Vice President
APAC Region
Peter Szabo
Executive Vice President
Operations
Joined Nilfisk 2018 2012 2007 1995 2023
Core competencies • International marketing, sustainability &
ESG
• International B2C sales and business
development
• Global sales
• Commercial & strategic account
development
• Customer relationship management &
enhanced customer experience
• Company culture
• Service businesses
• Commercial management
• International sales
• Industrial engineering
• General management & business
leadership
• Commercial activation and execution
• Task oriented and result driven
• International business leadership
• R&D and global operations management
• Manufacturing
• Business transformations, lean
transformations, and sustainable growth
development
Positions and directorships N/A N/A N/A N/A N/A
Previous positions • Danske Bank A/S
• TDC A/S
• Codan A/S
• Hilti • Elis
• Robert Bosch
• Mercedes-Benz
• Nilfisk Pty. Ltd. (Australia)
• Nilfisk Ltd. (UK)
• ISS A/S
• Carrier (United Technologies Corporation)
• Ford Motor Co.
Education • MSc in International Marketing &
Management
• BA in Business • General Management Program from
Harvard Business School
• MSc Industrial Engineering from
CentraleSupélec ECP Engineering School
• BSc Business and Production
Management from Reutlingen-EMLV
University
• MSc International Business Economics • MSc in Mechanical Engineering with
specialization in Transportation & Process
Engineering from Budapest University of
Technology and Economics, Hungary
Nilfisk shares end of 2023
1
4,861 (1,155) 846 (0) 2,100 (0) 802 (52) 0 (0)
1
End of 2022 in parenthesis.
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Nilfisk Leadership Team
competition, Economic & political instability, Cost
inflation, production & supply chain risk, Cyber & IT
security, and Failure to innovate.
Risk management
Risk is a natural part of doing business. At Nilfisk
we have a structured, consistent, and continuous
approach to ensure that our risk exposure is
assessed, minimized, and managed to the extend
possible.
The overall objective of risk management is to
support the realization of Nilfisk’s strategy and
support our operational and financial objectives,
ensuring that risks are properly identified and
mitigated. We use an integrated risk management
framework to identify, assess, manage, monitor, and
communicate risks across the company.
The Board of Directors has oversight responsibility
for risk management. One of the Board’s
responsibilities is overseeing and interacting
with the Nilfisk Leadership Team with respect to
key aspects of Nilfisk’s business, including risk
assessment and mitigation of key risks. Evaluation
of key risks is carried out by the Board and risks are
monitored on an ongoing basis.
The Nilfisk Leadership Team is responsible for
the identification, assessment, prioritization, and
mitigation of strategic, financial, operating, CSR,
compliance, safety, and reputational risks as well
as risks related to other areas. Risks are assessed
according to a two-dimensional heat map rating
system estimating the likelihood and business
impact.
Risk areas
The following 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): Commoditization &
Commoditization and
competition
Economic and political
instability
Cost inflation, production,
and supply chain risk
Cyber and IT security
Failure to innovate
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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 paying
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 Business Plan 2026 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 lifecycle services, customer-centric innovation, and
our sustainability commitment. With our value proposition and strategic priority to lead with sustainable
products, we add value beyond the machine and deliver cleaning solutions that blend into operations
while integrating digital services, collectively increasing the value of clean. We leverage strengths from our
quality-focused brand, and our wide product portfolio range with our broad customer access. We scale
benefits due to our size and geographical coverage.
Economic and
political instability
Adverse and unstable economic conditions including risks of global geopolitical conflicts may negatively
impact our financial position by increasing cost and decreasing demand for Nilfisk products affecting
sales negatively. Meanwhile, major social and political instability and changes may disrupt both the
cleaning industry and our business.
We closely monitor activity 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
Throughout the entire supply chain the risk of failures or delays may arise. The risk includes 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 have an ongoing focus on optimizing our production and distribution footprint covering several
production facilities and distribution centers. Initiatives include dual sourcing, optimization of supply
chain processes, and modularization strategy, with the aim of increasing scale advantages and reducing
production complexity. We continuously monitor functionality of utilities and compliance with applicable
regulations. Global purchasing programs include fixed-price contracts, purchase orders, and pricing
agreements. We pass on the risk of inflation through price increases to customers. We continuously
monitor developments 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
inadequate 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 the necessary availability
of 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 services, and ensure recovery business continuity plans.
Failure to
innovate
Technological developments and improvements are key to remaining 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 Business Plan 2026, we established a strong value proposition linked to strategic priorities
and optimization opportunities, among other things focused on customer-centric innovation and leading
with sustainable products, optimizing customer value while also ensuring technology enabled value
creation. 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
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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, 2022 146.60 DKK
Closing price at December 29, 2023 118.20 DKK
Change during the financial year -19.4%
Ownership structure
The company has approximately 11,500 registered
shareholders, who together hold 96.7% 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,
2023
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 4,618,112 17.0%
Institutional investors, Denmark 3,739,262 13.8%
Institutional investors, International 4,140,977 15.3%
Private investors 2,827,658 10.4%
Non-registered 897,883 3.3%
Dividend policy and dividend for 2023
The Board of Directors have adopted a dividend
policy with a target pay-out ratio of approximately
one third of the reported, consolidated profit for
the year. The payment of dividends, if any, will in
general be determined with a view to balancing the
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
21, 2024, the Board of Directors will propose not to
distribute dividends for the financial year of 2023.
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, corporate calendar etc. are
provided via https://investor.nilfisk.com.
Investor relations
Nilfisk works 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 2023, Nilfisk Holding A/S is covered by
four equity analysts. For a full list of analysts, please
visit https://investor.nilfisk.com.
Corporate calendar 2024
February 15 Annual Report 2023
March 21 Annual General Meeting
May 16 Q1 Interim Report 2024
August 15 Q2 Interim Report 2024
November 15 Q3 Interim Report 2024
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Shareholder information
Consolidated financial statements 2023
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 69
Basis for preparation 69
Key accounting estimates and judgments 71
Implementation of new or changed accounting standards 71
and interpretations
Profit for the year 72
Segment information 74
Revenue 75
Research and development costs 76
Special items 77
Amortization, depreciation, and impairment 78
Financial items 78
Tax 79
Remuneration 82
Staff costs 83
Remuneration to the Board of Directors and the 83
Nilfisk Leadership Team
Long-term incentive programs 84
Capital employed 86
Capital employed 87
Impairment test 87
Intangible assets 90
Property, plant, and equipment 92
Right-of-use assets 94
Pension liabilities 96
Provisions 98
Working capital 99
Working capital 100
Inventories 101
Trade receivables 102
Capital structure 103
Net interest-bearing debt 104
Investments in associates 105
Financial risks and financial instruments 106
Share capital 113
Cash flow 114
Other non-cash adjustments 114
Other notes 115
Fees to auditors elected at the annual general meeting 115
Related parties 115
Contingent liabilities, securities, and contractual 115
obligations
Events after balance sheet date 116
Group companies 116
Definitions 117
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 65
Statement of comprehensive income 65
Statement of financial position 66
Cash flow statement 67
Statement of changes in equity 68
Independent auditor’s report
NILFISK ANNUAL REPORT 202364
Parent financial statements Management’s statement
Financial StatementsManagement Review
Consolidated financial statements
Income
statement
for the years ended December 31
Statement of
comprehensive income
for the years ended December 31
EUR million Note 2023 2022
Revenue
2.1, 2.2 1,033.6 1,069.5
Cost of sales
2.5, 3 -611.1 -647.5
Gross profit
Research and development costs
2.3, 2.5, 3 -27.5 -31.2
Sales and distribution costs
2.5, 3 -251.7 -243.5
Administrative costs
2.5, 3 -74.6 -70.1
Other operating income 4.7 4.5
Other operating expenses -2.3 -2.2
Operating profit before special items
Special items, net
2.4, 2.5 -9.9 -9.9
Operating profit
Share of profit from associates
6.2 0.8 2.0
Financial income
2.6 10.4 0.5
Financial expenses
2.6 -25.1 -17.5
Profit before income taxes
Tax on profit for the year
2.7 -12.0 -14.0
Profit for the year
To be distributed as follows:
Profit attributable to shareholders of Nilfisk Holding A/S 35.3 40.6
Total
Earnings per share (based on 27,126,369 shares issued)
Basic earnings per share (EUR)
6.4 1.30 1.50
Diluted earnings per share (EUR)
EUR million Note 2023 2022
Profit for the year 35.3 40.6
Other comprehensive income
Items that may be reclassified to the income statement:
Exchange rate adjustments of subsidiaries -9.0 6.2
Value adjustment of hedging instruments:
Value adjustment for the year
6.3 -3.0 12.3
Transferred to cost of sales
6.3 -0.7 -5.0
Transferred to financial income and expenses
6.3 -9.6 -
Tax on value adjustment of hedging instruments
2.7 3.1 -1.5
Items that may not be reclassified to the income statement:
Transferred to inventory
6.3 -0.6 -0.5
Actuarial gains on defined benefit plans
4.6 - 0.8
Tax on actuarial gains on defined benefit plans
2.7 - -0.1
Total comprehensive income for the year
To be distributed as follows:
Comprehensive income attributable to shareholders of Nilfisk Holding A/S 15.5 52.8
Total
Independent auditor’s report
NILFISK ANNUAL REPORT 202365
Parent financial statements Management’s statement
Financial StatementsManagement Review
Notes to the consolidated financial statementsStatement of financial positionIncome statement and statement of comprehensive income Cash flow statement Statement of changes in equity
Consolidated financial statements
Statement of financial position
as of December 31
EUR million Note 2023 2022
Assets
Goodwill 168.7 170.4
Trademarks 4.7 6.1
Customer related assets 2.5 3.8
Development projects completed 32.1 24.9
Software, know-how, patents, and competition clauses 15.5 18.6
Development projects and software in progress 19.9 20.5
Total intangible assets
4.2, 4.3 243.4 244.3
Land and buildings 6.3 6.9
Plant and machinery 4.6 4.9
Tools and equipment 29.9 29.3
Assets under construction incl. prepayments 5.4 4.3
Right-of-use assets
4.5 66.6 57.4
Total property, plant, and equipment
4.2, 4.4
Investments in associates
6.2 34.9 33.2
Interest-bearing receivables
6.1 1.3 2.0
Other investments and receivables 2.8 12.0
Deferred tax
2.7 23.4 20.6
Total other non-current assets
Total non-current assets
4.1
Inventories
5.1, 5.2 200.5 220.2
Trade receivables
5.1, 5.3, 6.3 138.7 166.7
Interest-bearing receivables
6.1, 6.3 0.5 0.4
Income tax receivables
5.1 3.5 3.8
Other receivables
5.1, 6.3 28.9 34.7
Cash and cash equivalents 23.3 22.7
Total current assets
Total assets
EUR million Note 2023 2022
Equity and liabilities
Share capital
6.4 72.9 72.9
Reserves -5.0 14.8
Retained earnings 207.1 173.0
Total equity
Deferred tax
2.7, 4.1 6.9 7.3
Pension liabilities
4.1, 4.6 3.8 4.4
Provisions
4.1, 4.7 4.9 5.8
Interest-bearing loans and borrowings
6.1, 6.3 205.9 288.2
Lease liabilities
6.1, 6.3 44.7 36.9
Other liabilities
6.3 3.5 3.1
Total non-current liabilities
Interest-bearing loans and borrowings
6.1, 6.3 2.1 1.7
Lease liabilities
6.1, 6.3 24.6 23.0
Trade payables
5.1, 6.3 123.5 113.2
Income tax payables
5.1 7.8 10.8
Other liabilities
5.1, 6.3 97.2 96.2
Provisions
4.1, 4.7 14.1 12.1
Total current liabilities
Total liabilities 539.0 602.7
Total equity and liabilities
Independent auditor’s report
NILFISK ANNUAL REPORT 202366
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Financial StatementsManagement Review
Notes to the consolidated financial statementsStatement of financial positionIncome statement and statement of comprehensive income Cash flow statement Statement of changes in equity
Consolidated financial statements
Cash flow statement
for the years ended December 31
EUR million Note 2023 2022
Operating profit 61.2 69.6
Depreciation, amortization, and impairment
2.5 61.9 63.7
Other non-cash adjustments
7.1 -1.0 -0.5
Changes in working capital
5.1 46.8 -29.2
Cash flow from operations before financial items and income taxes 168.9 103.6
Financial income received 11.8 6.4
Financial expenses paid -22.6 -13.1
Income tax paid -15.1 -14.9
Cash flow from operating activities
Purchase of property, plant, and equipment
4.4 -8.6 -10.5
Sale/disposal of property, plant, and equipment 2.8 0.5
Purchase of intangible assets
4.3 -22.4 -15.9
Purchase of financial assets -1.7 -3.5
Disposal of financial assets 0.6 0.6
Dividends received from associates
6.2 1.5 1.3
Cash flow from investing activities
-27.8 -27.5
Free cash flow 115.2 54.5
Changes in current interest-bearing receivables - 0.1
Changes in current interest-bearing loans and borrowings 1.7 -5.2
Changes in non-current interest-bearing loans and borrowings -85.1 -16.1
Payment of lease liabilities -26.4 -25.2
Cash flow from financing activities
6.1 -109.8 -46.4
Net cash flow for the year 5.4 8.1
Cash and cash equivalents, January 1 22.7 15.0
Exchange rate adjustments -4.8 -0.4
Net cash flow for the year 5.4 8.1
Cash and cash equivalents, December 31
Independent auditor’s report
NILFISK ANNUAL REPORT 202367
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Notes to the consolidated financial statementsStatement of financial positionIncome statement and statement of comprehensive income Cash flow statement Statement of changes in equity
Consolidated financial statements
2023 2022
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 - -9.0 - - -9.0 - 6.2 - - 6.2
Value adjustment of hedging instruments:
Value adjustment for the year - - -3.0 - -3.0 - - 12.3 - 12.3
Transferred to cost of sales - - -0.7 - -0.7 - - -5.0 - -5.0
Transferred to financial income and expenses - - -9.6 - -9.6 - - - - -
Transferred to inventory - - -0.6 - -0.6 - - -0.5 - -0.5
Actuarial gains on defined benefit plans - - - - - - - - 0.8 0.8
Tax on actuarial gains on defined benefit plans - - - - - - - - -0.1 -0.1
Tax on value adjustment of hedging instruments - - 3.1 - 3.1 - - -1.5 - -1.5
Total other comprehensive income - -9.0 -10.8 - -19.8 - 6.2 5.3 0.7 12.2
Profit for the year - - - 35.3 35.3 - - - 40.6 40.6
Comprehensive income for the year
Share option program - - - -1.2 -1.2 - - - 0.2 0.2
Total changes in equity
Equity, December 31
Statement of changes in equity
for the years ended December 31
Independent auditor’s report
NILFISK ANNUAL REPORT 202368
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Consolidated financial statements
69
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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
1.1 Basis for preparation – continued
70
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2. Profit for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Cash flow
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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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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
73
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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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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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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
76
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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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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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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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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
80
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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
81
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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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2. Profit for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
7. Cash flow
8. Other notes
83
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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
84
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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
85
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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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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
87
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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
88
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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
Key accounting estimates - continued
4.2 Impairment test - continued
89
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NILFISK ANNUAL REPORT 2023
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
90
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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
91
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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
92
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Independent auditor’s reportConsolidated financial statements Parent financial statements Management’s statement
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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
93
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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
94
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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
95
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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
96
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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
97
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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
98
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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
99
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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
100
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Independent auditor’s reportConsolidated financial statements Parent financial statements Management’s statement
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NILFISK ANNUAL REPORT 2023
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
101
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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
102
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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
103
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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
104
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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
105
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1. Basis for reporting
2. Profit for the year
3. Remuneration
4. Capital employed
5. Working capital
6. Capital structure
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106
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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
107
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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
Forward exchange contracts with positive notional values are purchases of the
The Chinese yuan traded offshore (CNH) is used as a proxy when hedging the CNY
6.3 Financial risks and financial instruments – continued
108
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1. Basis for reporting
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3. Remuneration
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6. Capital structure
7. Cash flow
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6.3 Financial risks and financial instruments – continued
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1. Basis for reporting
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3. Remuneration
4. Capital employed
5. Working capital
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7. Cash flow
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6.3 Financial risks and financial instruments – continued
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1. Basis for reporting
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3. Remuneration
4. Capital employed
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6.3 Financial risks and financial instruments – continued
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6.3 Financial risks and financial instruments – continued
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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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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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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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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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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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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
118
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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 2023
1
2
3
4
5
6
7
8
9
10
11
12
Other income 122
Administrative costs 122
Fees to auditors elected at the Annual General Meeting 122
Financial items 122
Tax 122
Proposed distribution of loss for the year 122
Investments in subsidiaries 122
Prepayments 122
Related parties 123
Major shareholders 123
Contingent liabilities, securities, and contractual obligations 123
Events after the balance sheet date 123
Income statement 120
Balance sheet 120
Statement of changes in equity 121
Notes to the parent financial statements
Accounting policies 124
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Income statement
for the period January 1 to December 31
Balance sheet
as of December 31
EUR million Note 2023 2022
Other income
1 3.0 3.7
Administrative costs
2, 3 -5.2 -6.2
Operating loss -2.2 -2.5
Financial expenses
4 -4.0 -1.2
Loss before income taxes -6.2 -3.7
Income taxes
5 -0.2 1.4
Loss for the year -6.4 -2.3
To be distributed as follows:
Loss attributable to shareholders of Nilfisk Holding A/S
6 -6.4 -2.3
Total -6.4 -2.3
EUR million Note 2023 2022
Assets
Investments in subsidiaries
7 216.0 216.5
Deferred tax
5 1.4 1.6
Total non-current assets
217.4 218.1
Prepayments
8 0.3 0.6
Income tax receivable 0.3 0.3
Receivables from Group companies
9 3.8 18.5
Total current assets
4.4 19.4
Total assets
221.8 237.5
Equity and liabilities
Share capital 72.9 72.9
Retained earnings 4.7 12.0
Total equity 77.6 84.9
Interest-bearing loans and borrowings 42.6 32.8
Loans from Group companies
9 100.0 117.3
Other liabilities - 0.1
Total non-current liabilities 142.6 150.2
Trade payables and other liabilities 1.6 2.4
Total current liabilities 1.6 2.4
Total liabilities
144.2 152.6
Total equity and liabilities
221.8 237.5
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Statement of changes in equity
for the years ended at December 31
EUR million Share capital Retained earnings Total equity
2023
Equity, January 1 72.9 12.0 84.9
Loss for the year - -6.4 -6.4
Exchange rate adjustments - -0.2 -0.2
Share option program - -0.7 -0.7
Total changes in equity - -7.3 -7.3
Equity, December 31 72.9 4.7 77.6
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
The total number of shares is 27,126,369 with a nominal value of 20 DKK each. The share capital is unchanged
from 2022. All shares have been fully paid up and no shares carry special rights. Nilfisk Holding A/S’ Articles
of Association specifies no limits with respect to ownership or voting rights, and the Executive Management
Board is unaware of any agreements in this regard.
See Section 3 of the consolidated financial statements for a description of the share option programs to the
Executive Management Board. Changes in equity in 2023 are comprised of loss for the year, foreign exchange
rate adjustment, and changes to the share option program. No dividends are proposed for 2023.
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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 3.0 mEUR (2022: 3.7 mEUR)
received by Nilfisk Holding A/S.
2. Administrative costs
EUR million 2023 2022
Wages and salaries¹ 3.4 2.5
Bonus 0.5 1.0
Long-term incentive programs -0.2 -0.1
Total staff costs 3.7 3.4
Number of full-time employees, average 2 2
Number of full time employees, year-end 2 2
Remuneration to Board of Directors 0.7 0.6
Remuneration to the Executive Management Board 3.0 3.3
Remuneration to former members
of the Executive Management Board¹ - -0.5
Other administrative costs 2.0 2.8
Total administrative costs 5.2 6.2
¹Includes salary and redundancy costs to former members of the Executive Management Board.
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 2023 2022
Deloitte:
Statutory audit 0.2 0.1
Other assurance services - 0.1
Total 0.2 0.2
4. Financial items
EUR million 2023 2022
Foreign exchange losses -0.2 -
Interest to Group companies -3.8 -1.2
Total -4.0 -1.2
5. Tax
Tax recognized in the income statement
EUR million 2023 2022
Deferred tax 0.2 0.1
Adjustment, prior years - -1.5
Total 0.2 -1.4
Reported tax rate -3.4% 38.0%
Reconciliation of tax:
Calculated tax of 22.0% (2022: 22%) on loss before
income taxes -1.4 -0.8
Tax effect of:
Non-taxable income/non-deductible expenses 1.4 0.6
Tax assets valuation allowances 0.2 -1.2
Total 0.2 -1.4
Deferred tax assets
EUR million 2023 2022
Deferred tax assets, January 1 1.6 1.5
Exchange rate adjustments - -
Deferred tax recognized in the income statement -0.2 0.1
Deferred tax assets, December 31 1.4 1.6
6. Proposed distribution of loss for the year
EUR million 2023 2022
Suggested distribution of loss for the year:
Loss attributable to shareholders of Nilfisk Holding A/S -6.4 -2.3
Total -6.4 -2.3
7. Investments in subsidiaries
EUR million 2023 2022
Carrying amount, January 1 216.5 216.5
Exchange rate adjustments -0.5 -
Carrying amount, December 31 216.0 216.5
8. Prepayments
EUR million 2023 2022
Prepayments 0.3 0.6
Total 0.3 0.6
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9. Related parties
Transactions with affiliated undertakings comprise the following:
EUR million 2023 2022
Non-current interest-bearing loan from Nilfisk A/S 100.0 117.3
Receivables from Group companies 3.8 18.5
Management fee of 3.0 mEUR is included in the 3.8 mEUR as a net
receivable (2022: 3.7 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 4,618,112 17.0%
Note 9-12
11. Contingent liabilities, securities,
and contractual obligations
EUR million 2023 2022
Rental guarantees 6.3 6.5
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 time of demerger in
2017, which is not expected to materially impact the Group’s financial
position.
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’s statement
Executive Management Board
Board of Directors
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Report on the consolidated financial statements and the parent
financial statements
Independent auditor’s report
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Business Registration No 33 96 35 56
Identification No (MNE) mne21358
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Nilfisk’s Annual Report 2023 was published on February 15, 2024.
The report is also available at www.nilfisk.com.
Company reg. No. 38 99 88 70
Investor Relations contact IR@nilfisk.com