Addnode Group

Interim / Quarterly Report • Jul 12, 2024

Interim Report January 1–June 30 2024

This is a translation of the Swedish original of Addnode Group's Interim Report for the period 1 January–30 June 2024.

Second quarter April 1–June 30, 2024

• Net sales increased by 29 percent to SEK 2,005 m (1,554), of which 12 percent was organic. Currency-adjusted organic growth was 11 percent.

In the event of inconsistency between the two, the original Swedish version shall apply.

• Gross profit increased to SEK 1,003 m (859), and the gross margin was 50.0 percent (55.3).
• EBITA increased to SEK 162 m (110), and the EBITA margin was 8.1 percent (7.1).
• Operating profit increased to SEK 96 m (56), and the operating margin amounted to 4.8 percent (3.6).
• Net profit for the period increased to SEK 54 m (34).
• Earnings per share increased to SEK 0.41 (0.25).
• Cash flow from operating activities increased to SEK 178 m (127).
• Acquisition of GPS Timber software.
• Jonas Gejer, VP of Business Development, stepped down from his position.

Events after the end of the reporting period

• Acquisition of Addoceo AB.
• Acquisition of Prime Aerostructures in Austria.

29 72 8.1 % % % ⁺

Net sales growth Q2 2024 compared with Q2 2023

Share of recurring revenue Q2 2024 EBITA margin Q2 2024

Key figures	Second quarter		6 months		Rolling 12 mos	Full year
	2024 Apr–Jun	2023 Apr–Jun	2024 Jan–Jun	2023 Jan–Jun	Jul 2023– Jun 2024	2023
Net sales, SEK m	2,005	1,554	4,414	3,526	8,300	7,412
Gross profit, SEK m	1,003	859	2,104	1,799	4,008	3,703
Gross margin, %	50.0	55.3	47.7	51.0	48.3	50.0
EBITA, SEK m	162	1101)	415	3121)	7431)	6402)
EBITA margin, %	8.1	7.11)	9.4	8.81)	9.01)	8.62)
Operating profit, SEK m	96	561)	283	2051)	4881)	4102)
Operating margin, %	4.8	3.61)	6.4	5.81)	5.91)	5.52)
Net profit for the period, SEK m	54	341)	174	1381)	3151)	2792)
Earnings per share, SEK	0.41	0.251)	1.31	1.031)	2.361)	2.092)
Cash flow from operating activities, SEK m	178	127	559	396	648	485
Return on capital employed3)	15.3	15.4	15.3	15.4	15.3	13.8
Return on equity3)	14.8	17.9	14.8	17.9	14.8	13.5
Equity/assets ratio, %	27	32	27	32	27	29
Debt/equity ratio, %	38	24	38	24	38	47

1) EBITA was impacted by restructuring costs of SEK -10 m.

2) EBITA was impacted by restructuring costs of SEK -20 m. 3) Key figures have been adjusted to reflect annualized return.

All amounts are presented in millions of Swedish kronor (SEK m) unless indicated otherwise. Rounding differences of SEK +/-1 m may occur in totals. In cases where an underlying figure is SEK 0 m when rounded, it is presented as 0.

Growth and robust earnings improvement

"The second quarter of 2024 was strong for Addnode Group, with organic and acquired growth and a robust improvement in earnings. Net sales increased by 29 percent and earnings per share improved by 64 percent. Strong growth for Symetri, the acquisition of Team D3 and cost efficiencies in the Product Lifecycle Management division contributed to this positive development."

Second quarter 2024

In the second quarter, we continued to grow and noted a significant improvement in operating profit. I am proud of our employees' ability to both pursue daily improvements and invest in new digital solutions and carry out acquisitions—all with the customer in focus. Net sales increased by 29 percent, of which 11 percent was currency-adjusted organic growth. EBITA increased by 47 percent to SEK 162 m and earnings per share improved by 64 percent. Cash flow from operating activities increased to SEK 178 m (127).

Net sales growth in the Design Management division amounted to 56 percent, of which currency-adjusted organic growth accounted for 22 percent. Improved sales in both Europe and the USA, the acquisition of Team D3 and a product mix with a higher share of revenue from Autodesk's three-year agreements contributed to the significant EBITA-improvement in the division.

Net sales in the Product Lifecycle Management division were unchanged and currency-adjusted organic growth was negative at -2 percent. While there is clear demand for the design, simulation and lifecycle solutions offered by the division, customer investment decisions are taking longer as a result of the economic situation, particularly in the automotive industry. The cost efficiencies implemented in 2023 meant that the EBITA margin improved from 4.3 percent to 7.9 percent, despite negative organic growth.

Growth in the Process Management division amounted to 5 percent, of which currency-adjusted organic growth accounted for 4 percent. Demand for case management and geographic information systems in the public sector remained stable. The public sector offers many opportunities for upselling digital solutions to existing customers.

Digital solutions for a sustainable society

In a rapidly changing world, responsible and efficient use of resources is crucial when it comes to building a long-term sustainable society. In this quarterly report, we present three concrete examples of how we are working with our customers to develop digital solutions for efficient resource use and a more sustainable society:

• circular and recyclable packaging to increase recycling rates,
• proactive maintenance strategies for healthcare facilities, and
• more efficient simulations of energy use in buildings to reduce carbon emissions.

With the help of digital solutions and more efficient processes, we are contributing to creating a more sustainable society, together with our customers.

Acquisitions

After the end of the quarter, Addnode Group announced two smaller acquisitions: Prime Aerostructures in the Product Lifecycle Management division and Addoceo in the Process Management division. I would like to welcome both companies to Addnode Group. We have completed six acquisitions so far in 2024 and I continue to see many opportunities for further acquisitions. Thanks to good cash generation and a strong financial position with low debt, we can continue to execute on our strategy for profitable and sustainable growth.

Future outlook

The economic situation remains uncertain. Although customers are reluctant to make major investments in new projects, there are many opportunities for upselling to existing customers. The strength and capability of our companies to deliver digital solutions for a sustainable society, our healthy financial position and our acquisition capacity provide a solid foundation for continued value creation.

Johan Andersson President and CEO

Significant events

In the second quarter of 2024

Acquisition of GPS Timber software

In May 2024, Icebound (within Process Management) acquired the remaining 50 percent share of the GPS Timber software. GPS Timber quality ensures the management of raw materials and timber at sawmills and pulp mills. GPS Timber was previously owned at 50 percent.

Jonas Gejer, VP of Business Development, steps down from his position

Jonas Gejer, VP of Business Development, has left his operational role as of June 30, 2024. Jonas is one of the founders and former CEO of Technia. Jonas will continue to contribute to Addnode Group's business development projects.

New transaction model in the Design Management division

Autodesk's transition to a new transaction model was announced in the fourth quarter of 2023, and the new transaction model was implemented in the USA on June 10, 2024. The model will be introduced in Europe in September 2024. The transition is expected to be completed in 2025.

Under the new transaction model, Autodesk will transition from its current reseller model to an agent model. Addnode Group's company Symetri will continue to work with customers to identify the solution that best suits their business, implement the solution and provide support. Autodesk will invoice customers directly for its own software and pay Symetri commission for the work performed.

Half of Symetri's gross profit already comes from own software and services.

With the new transaction model, net sales and purchases of goods and services will decrease, while gross profit and EBITA are expected to remain unchanged. This means that the EBITA margin (%) will increase. Cash flow is expected to remain unchanged compared with the current reseller model.

After the end of the reporting period

Acquisition of Addoceo

In July 2024, Addoceo AB was acquired in the Process Management division. The company supplies case management systems for transportation services and IT solutions for retail businesses and manufacturing industries. The case management system is used, for example, by numerous Swedish municipalities and regions. The company has net sales of approximately SEK 15 m.

Acquisition of Prime Aerostructures in Austria

In July 2024, Technia, part of the Product Lifecycle Management division, acquired Prime Aerostructures. Prime Aerostructures is a leading Dassault Systèmes Partner based in Austria and a simulation leader in the aerospace engineering industry. The company also has a strong presence as a partner to many aerospace companies. Prime Aerostructures employs technologies and services to design lightweight, high-performance components, thereby improving aircraft efficiency and safety. Its services cover the entire product lifecycle, from concept to production and certification. The company has net sales of approximately SEK 45 m.

October 24, 2024 Interim Report for the third quarter of 2024

April 25, 2025 Interim Report for the first quarter of 2025

January 31, 2025 Year-end Report

for 2024

About Addnode Group

Strategy

Addnode Group acquires, operates and develops cutting-edge businesses that digitalize society. We create sustainable value growth over time by continuously acquiring new businesses and actively supporting our subsidiaries to drive organic earnings growth.

Three divisions

Addnode Group's subsidiaries are organized into three divisions: Design Management, Product Lifecycle Management and Process Management. A decentralized governance model means that business-critical decisions are made close to customers and markets.

Financial targets

• Annual net sales growth of at least 10 percent.
• Operating margin before amortization and impairment of intangible assets (EBITA margin) shall be at least 10 percent.
• 30-50 percent of the Group's profit after tax to be distributed to shareholders, providing its liquidity and financial position are sufficient to operate and develop the business.

Market position

Addnode Group consists of approximately 20 companies, active in 19 countries across four continents. The employee headcount is approximately 2,700.

The Group has a market-leading position in Europe and the USA as a provider of software and services for design, construction and manufacturing. In Europe, the Group also has a strong market position in digital solutions for product data, project collaboration and facility management. In Swedish public administration, Addnode Group is a leading provider of document and case management systems.

Sustainability agenda

The digital solutions we develop in close partnership with our customers help create a more sustainable society. Our solutions are used for sustainable and resource-efficient design and product lifecycle management, simulations that benefit the environment and health, and better engagement and dialogue with citizens.

Addnode Group's sustainability agenda defines five focus areas that are the foundation of the Group's collective commitment to sustainability. We have defined key indicators for each focus area that we monitor and report each year in Addnode Group's Annual Report.

STRATEGY FOR PROFITABLE AND SUSTAINABLE GROWTH SUSTAINABILITY AGENDA WITH FIVE FOCUS AREAS

1 4 Digital solutions

that contribute to sustainable development

Care for people and the planet in our own operations

2 3 Our work with partners and suppliers

Long-term financial viability

7 41

16 %

2

5 Sustainability management and governance

UN SUSTAINABLE DEVELOPMENT GOALS (SDGS) WITH THE CLEAREST CONNECTION

TO ADDNODE GROUP'S SUSTAINABILITY AGENDA:

8 % 2 942 3 434 9 % -6 % 17 % 2 % 3 807 4 077 5 % 6 225 36 % 3 % 17 %

Net sales, SEK m Organic growth, % Acquired growth, % Acquired companies, no.

ORGANIC AND ACQUIRED GROWTH,

2018–2023

2018 2019 2020 2021 2022 2023

+3 +4 +4 +5 +3

Digitalization for a Better Society

Proactive maintenance strategy saves time and money

Addnode Group's subsidiary SWG, part of the Design Management division, delivers digital solutions for facility management to Kettering General Hospital NHS Foundation Trust (Kettering NHS). Older healthcare facilities like Kettering NHS require effective information systems and maintenance procedures to ensure optimal patient care. Ensuring that the facility's equipment meets the extensive requirements of the healthcare sector at all times, for example in terms of the functionality of lighting, air conditioning and radiators, is difficult and time consuming. Maintenance and repairs can in turn create challenges when it comes to patient relocation and reducing the number of available beds.

Kettering NHS uses the QFM and QFM Space systems from SWG to collect information, including drawings, equipment and transportation data. The solutions help to reduce the total time the units in the facility are taken out of service for maintenance. Planned care and clinic services can be carried out at the scheduled time and location to a greater extent than in the past.

Improved data and reporting facilitates compliance, prevents delays in clinic services and enables a more proactive maintenance strategy. This results in a safer environment for patients and hospital staff alike and saves approximately GBP 4,000 per week by reducing emergency maintenance.

More efficient simulation cuts building carbon emissions

Addnode Group's subsidiary Technia, part of the Product Lifecycle Management division, has supported Energy Systems Catapult (Catapult) in developing a more efficient simulation tool for its product Home Energy Dynamics. Catapult is a team of technical consultants who work with companies whose products and services are designed to contribute to the climate transition.

Home Energy Dynamics is used to simulate energy use in buildings and assess the performance of low-carbon heating systems. While the tool provides highly accurate results, the simulations used to take a very long time. This meant there was a major need for faster simulations with the same accurate results. To achieve this, a comprehensive test library was created for a building's various energy-consuming systems: heating, ventilation and air conditioning. The test library was then used to improve the simulation performance of the models in Home Energy Dynamics, reducing the simulation time by about 50 percent. To further increase the speed, the system was supplemented with Technia's product Claytex MultiRun, which enabled up to ten simulations to be run in the same time it previously took to run one.

Catapult can now offer faster evaluation, selection and implementation of technologies to reduce carbon emissions from a building's heating and cooling systems.

Platform for circular and recyclable packaging

Addnode Group's subsidiary Decerno, part of the Process Management division, has developed a new business and logistics platform on behalf of the producer responsibility organization Näringslivets Producentansvar (NPA). In 2024, new producer responsibility legislation was introduced in Sweden with the aim of increasing recycling. To comply with these new rules and promote the use of circular and recyclable packaging, NPA was established through a collaboration between five trade associations and an approved producer responsibility organization.

NPA was looking for a business and logistics platform to help its member packaging producers transition to circular packaging, comply with legislation and meet Sweden's packaging recycling targets. Decerno has developed a business platform for logistics planning, tracking and reporting, with built-in fees, reimbursements and case management. The system is designed to handle the thousands of shipments and large volumes of material that this extensive operation requires.

The new business platform enables consumers, businesses and municipalities to achieve higher recycling rates, and NPA also works with manufacturers and recycling facilities to design packaging based on data that contributes to circular packaging design.

Consolidated net sales, earnings and cash flow

Second quarter, April–June 2024

Net sales for the second quarter of 2024 increased by 29 percent to SEK 2,005 m (1,554). Organic growth was 12 percent, while currency-adjusted organic growth was 11 percent. Last year's comparative figures were impacted by weak sales in the Design Management division, mainly in the USA. Earnings for the preceding year were also affected by restructuring costs in the Product Lifecycle Management division.

The Design Management division reported an increase in net sales attributable both to the acquisition of Team D3 and to healthy organic growth. Currency-adjusted organic growth was 22 percent, and net sales increased due to a higher share of three-year agreements compared with the same period last year. EBITA Divisioner Q2

Currency-adjusted organic growth in the Product Lifecycle Management division was negative at -2 percent. Demand for PLM systems and associated services was good in the Nordic countries. By contrast, sales were slightly weaker in Germany, the UK and the USA due to a decline in license sales in the automotive industry.

Currency-adjusted organic growth in the Process Management division amounted to 4 percent. Demand was stable, although continued restraint and delayed procurements and investments were noted among municipalities and public authorities.

License revenue (non-recurring) amounted to SEK 41 m (94), recurring revenue increased to SEK 1,442 m (1,004), service revenue increased to SEK 498 m (432) and other revenue amounted to SEK 24 m (24). The recurring revenue share increased to 72 percent (65). GP Divisioner Q2

EBITA amounted to SEK 162 m (110), and the EBITA margin was 8.1 percent (7.1). Restructuring measures were carried out last year in the Product Lifecycle Management division in order to adapt the organization and cost structure. Restructuring costs amounted to approximately SEK 10 m in the second quarter of 2023. These measures have had the intended effect and contributed positively to the division's earnings. The cost reductions implemented in the US operations in the third quarter of 2023 (Design Management division) also continued to have a positive impact on earnings.

Net financial items amounted to SEK -24 m (-12) and related to discounts on contingent considerations, increased borrowing in connection with acquisitions and higher interest rates. NEJ

Addnode Group, R12

Nettoomsättning EBITA

Net profit for the period increased by 59 percent to SEK 54 m (34). Earnings per share increased to SEK 0.41 (0.25).

Cash flow from operating activities amounted to SEK 178 m (127) and was impacted by higher operating profit and changes in working capital.

First half-year, January–June 2024

Net sales amounted to SEK 4,414 m (3,526), representing growth of 25 percent, of which 6 percent was organic. Currency-adjusted organic growth was 5 percent.

License revenue decreased to SEK 114 m (174), recurring revenue increased to SEK 3,275 m (2,432), service revenue increased to SEK 978 m (865), and revenue from other was SEK 47 m (55).

EBITA increased to SEK 415 m (312), and the EBITA margin was 9.4 percent (8.8). EBITA included restructuring costs of SEK - m (10) in the Product Lifecycle Management division. EBITA was charged with acquisition costs of SEK -5 m (-1).

Net financial items amounted to SEK -55 m (-25), mainly related to higher interest discounts on contingent considerations, increased borrowing and higher interest rates. The reported tax on profit for the period was SEK -54 m (-42). Net profit for the period increased to SEK 174 m (138). Earnings per share increased to SEK 1.31 (1.03).

Cash flow from operating activities increased to SEK 559 m (396).

TREND IN NET SALES AND EBITA 2020–2024, SEK M REVENUE BREAKDOWN, Q2 2024 0 2020 2021 2022 2023 2024

(Geography based on subsidiary domicile)

Performance by division

Net sales, Gross profit and EBITA, Q2

		Net sales		Gross profit			EBITA
SEK m	2024 Q2	2023 Q2	Change %	2024 Q2	2023 Q2	Change %	2024 Q2	2023 Q2	Change %
Design Management	1,214	778	56	507	388	31	86	48	79
Product Lifecycle Management	468	468	0	230	217	6	37	201)	85
Process Management	335	320	5	272	260	5	59	60	-2
Eliminations/central costs	-12	-12		-6	-6		-20	-18
Addnode Group	2,005	1,554	29	1,003	859	17	162	1101)	47

1) EBITA was impacted by restructuring costs of SEK -10 m.

Net sales, Gross profit and EBITA, YTD

		Net sales Gross profit			EBITA
SEK m	2024 Jan–Jun	2023 Jan–Jun	Change %	2024 Jan–Jun	2023 Jan–Jun	Change %	2024 Jan–Jun	2023 Jan–Jun	Change %
Design Management	2,838	1,991	43	1,116	862	29	254	179	42
Product Lifecycle Management	922	901	2	454	425	7	78	462)	70
Process Management	677	655	3	546	524	4	124	124	0
Eliminations/central costs	-23	-21		-12	-12		-41	-37
Addnode Group	4,414	3,526	25	2,104	1,799	17	415	3122)	33

2) EBITA was impacted by restructuring costs of SEK -10 m. EBITA Divisioner Q2

GP Divisioner Q2

0 2000

8000 10000

INTÄKTSFÖRDELNING Divisioner Q2

Design Management 60%

Product Lifecycle Management 23% 4000 6000

Process Management 17%

NET SALES1) Q2 2024 EBITA3) GROSS PROFIT Q2 2024 2) Q2 2024

Design Management 50% 600 800 Addnode Group, R12

Product Lifecycle Management 23% 400

Process Management 27% 0 200

2020 2021 2022 2023 2024

2020 2021 2022 2023 2024

Nettoomsättning EBITA

Addnode Group, R12

Nettoomsättning EBITA

1) Before eliminations 2) Before eliminations/central costs 3) Before eliminations/central costs

EBITA Divisioner Q2

GP Divisioner Q2

Design Management 47%

Product Lifecycle Management 20%

Process Management 33%

2020 2021 2022 2023 2024

2020 2021 2022 2023 2024

Nettoomsättning EBITA

Addnode Group, R12

Nettoomsättning EBITA

Addnode Group, R12

Design Management division

Design Management is a leading global provider of digital solutions and services for design, building information modeling (BIM) and product data for architects and engineers in the construction and manufacturing industries. The division also has a strong digital offering for project collaboration and facility management in the Nordic countries and the UK.

Progress in the quarter

In the second quarter, net sales increased by 56 percent to SEK 1,214 m (778). Organic growth was 23 percent. Adjusted for currency, organic growth was 22 percent. The previous year saw weak sales, particularly in the USA, and the comparative figures are therefore weak. EBITA increased to SEK 86 m (48), and the EBITA margin increased to 7.1 percent (6.2).

The division's operation within digital solutions for design, BIM and product data, which are conducted by Symetri, experienced increased demand and strong sales during the quarter, with a sales mix with a larger share of three-year Autodesk agreements compared with the corresponding period last year. Sales in the UK were strong to both the construction and manufacturing industries. In the USA, we noted stronger sales to architects and technical consultants compared with the preceding year.

Autodesk's transition to a new transaction model was implemented in the USA on June 10, 2024. Commission-based net sales under the new model were limited during the quarter.

The cost reductions implemented in the US operations in 2023 continued to contribute to earnings in the second quarter. Moreover, the acquisition of Team D3, which was completed in July 2023, contributed positively to net sales and earnings.

Service Works Global, which provides digital solutions for facility management, and Tribia, which provides collaborative solutions for the construction and infrastructure sector, displayed stable growth.

Acquisitions

No acquisitions were carried out during the quarter.

In June 2023, Addnode Group signed an agreement to acquire all the shares of D3 Technical Services LLC (Team D3) in the USA. The acquisition was completed in early July 2023, and the company is part of Symetri. At the time of acquisition, Team D3 had annual net sales of USD 120 m (approximately SEK 1,300 m) and 200 employees. Team D3 is an Autodesk Platinum Partner and has a strong position in the manufacturing and process industry segments as well as the AEC segment. The company is mainly active in central USA.

Market

Operations in the division are conducted by the companies Symetri, Team D3, Service Works Global and Tribia. These companies offer digital solutions and services for design, BIM and product data for architects and engineers in the manufacturing and construction industries. The division also has a strong digital offering for project collaboration and facility management in the Nordic countries and the UK. Customers' willingness to invest in digital solutions is driven by urbanization and the need to build and manage efficiently and sustainably. Regulatory authorities are also demanding digital solutions based on BIM.

56

Net sales growth Q2 2024 compared with Q2 2023

TREND IN NET SALES AND EBITA 2020–2024, SEK M Key figures

Product Lifecycle Management, R12

2020 2021 2022 2023 2024

Process Management, R12

2020 2021 2022 2023 2024

Nettoomsättning EBITA

Nettoomsättning EBITA

Design Management, R12

79 % % ^{+ +}

EBITA growth Q2 2024 compared with Q2 2023

SEK m	Q2 2024	Q2 2023	Change %
Net sales	1,214	778	56
Gross profit	507	388	31
Gross margin, %	41.8	49.8
EBITA	86	48	79
EBITA margin, %	7.1	6.2
Operating profit	51	25	104
Operating margin, %	4.2	3.2
Average number of employees	1,096	933	17

Product Lifecycle Management division

Product Lifecycle Management is a global provider of solutions for digitalizing a product's or facility's complete lifecycle—from idea, design, simulation and construction to sale, aftermarket and recycling. For our customers, this means shorter lead-times, more innovation, increased efficiency, and traceability.

Progress in the quarter

In the second quarter of 2024, net sales were unchanged at SEK 468 m (468). Organic growth was -2 percent. Adjusted for currency effects, organic growth was -2 percent. EBITA increased to SEK 37 m (20), and the EBITA margin increased to 7.9 percent (4.3). Earnings for the previous year were affected by restructuring costs of SEK 10 million in the second quarter of 2023.

Demand for PLM systems and associated services was good in the Nordic countries. Sales were slightly weaker in Germany, the UK and the USA due to a decline in license sales in the automotive industry. The economic situation and interest rates have affected customer decision-making processes concerning new and larger system projects and investments, leading to more frequent postponements during the year. Service revenue was somewhat higher than in the previous year.

The trend of customers increasingly preferring to rent licenses on a fixed-term basis, rather than purchasing licenses with perpetual right of use continued as before.

The restructuring measures implemented in 2023 have had the planned impact, and the cost level has been reduced.

Acquisitions

In February 2024, Optimec Consultants (Optimec), Canada, was acquired. The company is a reputable Dassault Systèmes Partner based in Québec. Optimec has about 20 employees and net sales of approximately SEK 40 m. The company provides digital solutions for Computer Aided Engineering (CAE). Optimec will add strategic expertise and further reach for the division's international customer base.

After the end of the reporting period

In July 2024, Technia acquired the company Prime Aerostructures. Prime Aerostructures is a leading Dassault Systèmes Partner based in Austria and a simulation leader in the aerospace engineering industry. Prime Aerostructures employs technologies and services to design lightweight, high-performance components, thereby improving aircraft efficiency and safety. Its services cover the entire product lifecycle, from concept to production and certification. The company has about ten employees and net sales of approximately SEK 45 m.

Market

The operations of the Product Lifecycle Management division are conducted by the subsidiary Technia, a global provider of solutions for digitalizing a product's or facility's complete lifecycle—from idea, design, simulation and construction to sale, aftermarket and recycling. For our customers, this means shorter lead-times, more innovation, increased efficiency, and traceability. Customers' willingness to invest is driven by the need to develop and design products, to maintain product information throughout complete lifecycles and to comply with regulatory standards.

0 2 000 3 000 4 000 5 000 6 000 Design Management, R12

0

Net sales growth Q2 2024 compared with Q2 2023 1 000

Process Management, R12

2020 2021 2022 2023 2024

Nettoomsättning EBITA

2020 2021 2022 2023 2024

EBITA growth Q2 2024 compared with Q2 2023

SEK m	Q2 2024	Q2 2023	Change %
Net sales	468	468	0
Gross profit	230	217	6
Gross margin, %	49.1	46.4
EBITA	37	20	85
EBITA margin, %	7.9	4.3
Operating profit	22	3	633
Operating margin, %	4.7	0.6
Average number of employees	725	744	-3

Process Management division

Process Management is a leading provider of digital solutions to the public sector in Sweden. These solutions help to streamline case management, simplify administration and quality-assure processes in contacts between authorities and citizens.

Progress in the quarter

In the second quarter of 2024, net sales increased by 5 percent to SEK 335 m (320). Adjusted for currency effects, organic growth was 4 percent. EBITA amounted to SEK 59 m (60), and the EBITA margin was 17.6 percent (18.8).

Municipalities and public authorities showed continued restraint in terms of investments in major projects, and there were fewer tenders than in the previous year. Sales remained stable, and the division's good and well-established relationships with a large public sector customer base frequently present opportunities for recurring sales, or the expansion of current assignments.

The division is continuing to invest in future products and solutions and is enhancing its customer offerings. The division's businesses are well positioned in public sector tenders owing to their attractive digital solutions, in-depth experience and good references.

Acquisitions

0

In January 2024, Efficture was acquired by the newly established company Icebound. Efficture has proprietary software for forest and timber management. The company has net sales of approximately SEK 2 m. With this acquisition, Icebound strengthened its offering and market position as a player in digital solutions for the forest sector and other primary industries.

In February 2024, all the shares of Jetas Quality Systems were acquired. The company is a supplier of case management systems for fault reports and work orders within public transport and property management, and has collaborated with the Group company Forsler & Stjerna for several years. The company has net sales of approximately SEK 6 m. 300 400 500 600 3 000 4 000 5 000 6 000 Design Management, R12

2020 2021 2022 2023 2024

Nettoomsättning EBITA

In May 2024, Icebound acquired the remaining 50 percent share of the GPS Timber software. GPS Timber is a product that was previously owned at 50 percent. The company has net sales of approximately SEK 8 m.

After the end of the reporting period

Addoceo AB (Addoceo), a supplier of case management systems for transportation services and IT solutions for retail businesses and manufacturing industries, was acquired in July 2024. The company has revenue of approximately SEK 15 m and about ten employees. The acquisition was completed on July 1, 2024.

Market

Process Management, whose operations are conducted by 13 subsidiaries, is a leading provider of digital solutions for the public sector. The division has operations in Sweden and Norway. These solutions help to streamline case management, simplify administration and quality-assure processes in contacts between authorities and citizens.

Our customers' willingness to invest is driven by automation, simplified administration and more effective communication with citizens. A growing base of public authorities and municipalities are seeking to partner for the long term in their efforts to develop innovative operations compliant with regulatory requirements.

5 % % ⁺ – 1 000 1 500 2 000 Product Lifecycle Management, R12

Net sales growth Q2 2024 compared with Q2 2023 500

TREND IN NET SALES AND EBITA 2020–2024, SEK M 2020 2021 2022 2023 2024 Nettoomsättning EBITA

EBITA growth Q2 2024 compared with Q2 2023

Key figures

0 100 200

		SEK m	Q2 2024	Q2 2023	Change %
	300	Net sales	335	320	5
	240	Gross profit	272	260	5
	180	Gross margin, %	81.2	81.2
		EBITA	59	60	-2
	120	EBITA margin, %	17.6	18.8
	60	Operating profit	44	46	-4
	0	Operating margin, %	13.1	14.4
R12		Average number of employees	731	675	8

Disclosures on acquisitions

Acquisitions completed in 2024

During the January–June 2024 period, Addnode Group acquired all the shares of three businesses: Efficture AB (Efficture), Jetas Quality Systems AB (Jetas) and Optimec Consultants Inc. (Optimec). During the period, these acquisitions contributed net sales of SEK 18 m and EBITA of SEK 2 m. If the acquisitions had been completed as of January 1, 2024, the Group's net sales in 2024 would have been approximately SEK 4,418 m and EBITA approximately SEK 416 m. Expenses of SEK -5 m (-1) for completing the acquisitions are included in the Group's other external costs.

Efficture, which was acquired in January, is a complementary acquisition within Icebound that delivers digital solutions to the forest sector and other primary industries. Efficture was consolidated into the Process Management division effective January 2024.

The acquisition of Jetas was completed in February 2024. The company is a supplier of case management systems for fault reports and work orders within public transport and property management, and has collaborated with the Group company Forsler & Stjerna for several years. The operations were consolidated into the Process Management division effective February 2024.

Optimec, acquired in February 2024, is a Dassault Systèmes Partner specializing in CAE. Optimec has operations in Canada, about 20 employees and net sales of approximately SEK 40 m. The operations were consolidated with Technia in the Product Lifecycle Management division effective February 2024.

After the end of the reporting period

On July 1, 2024, Addoceo AB was acquired in the Process Management division. The company supplies case management systems for transportation services and IT solutions for retail businesses and manufacturing industries. The acquisition was completed on July 1, 2024 and will be consolidated effective July 2024 in the Process Management division.

In July 2024, Prime Aerostructures was acquired. The company is a leading Dassault Systèmes Partner and a simulation leader in the aerospace engineering industry. Prime Aerostructures has operations in Austria, about ten employees and net sales of approximately SEK 45 m. The operations were consolidated with Technia in the Product Lifecycle Management division effective July 2024.

Acquisition analyses

The following acquisition analyses were prepared for the acquisitions. The calculations are preliminary as the companies are recently acquired, and include the companies Efficture, Jetas and Optimec.

Acquisition analysis Efficture, Jetas and Optimec (SEK m)

Acquired companies' net assets at acquisition date	Carrying amount in companies	Fair value adjustment	Fair value, Group
Intangible non-current assets1)	–	35	35
Other non-current assets	2	–	2
Current assets	31	–	31
Cash and cash equivalents	5	–	5
Other liabilities	-25	-8	-34
Net identifiable assets/liabilities	13	27	40
Goodwill	–	–	68
Calculated purchase consideration2)			108

1) Intangible assets refer to technology and customer relationships.

2) Non-current contingent considerations of a maximum of SEK 9 m and CAD 2.25 m (approx. SEK 18 m) may be payable for the acquisitions of Efficture, Jetas and Optimec, of which approximately SEK 9 m and CAD 2.20 m (approx. SEK 18 m) has been entered as a liability. The acquisition of Optimec includes current contingent consideration liabilities of CAD 0.75 m (approx. SEK 6 m).

Consolidated balance sheet and cash flow

Liquidity and financial position

Cash and cash equivalents held by the Group amounted to SEK 770 m (1,188) as of June 30, 2024.

In June 2023, Addnode Group agreed to increase its existing credit line with a term loan of SEK 1,000 m with Nordea and SEB. This loan was utilized to refinance existing loans in different currencies and for general corporate purposes. The term loan has a three-year term, with a 1+1 year extension option. Most of the loans drawn from the revolving credit facility were transferred to this loan, which created available scope in the revolving credit facility.

In June 2024, Addnode Group exercised its option to extend the term loan by one year to June 2027, with other terms and conditions unchanged.

SEK 465 m (504) of the credit facility had been utilized as of June 30, 2024, which meant that available credit amounted to SEK 1,135 m (1,096). The utilized portion of the credit facility is classified under non-current liabilities.

SEK 272 m (173) of the interest-bearing liabilities in addition to the utilized portion of the credit facility of SEK 465 m (943) related to leases. There were no interest-bearing liabilities related to completed acquisitions. Consequently, the Group's total interest-bearing liabilities were SEK 1,596 m (1,679), and the Group's net debt was SEK 825 m (488). The equity/assets ratio was 27 percent (35). The Group's total liabilities related to completed acquisitions amounted to SEK 583 m (380), of which non-interest-bearing liabilities amounted to SEK 29 m (7) and estimated contingent considerations amounted to SEK 554 m (373).

Cash flow

Cash flow from operating activities for the January–June 2024 period increased to SEK 559 m (396). The increase was mainly attributable to stronger operating profit and changes in working capital. Cash flow from investing activities includes payments for proprietary software of SEK 83 m (72). Investments in subsidiaries and operations generated a negative cash flow of SEK 96 m (137). Financing activities were negatively affected by a SEK 51 m (50) repayment of a lease liability and by a SEK 133 m (133) payment of share dividends in May 2024. In connection with the settlement of debt for acquisitions, bank loans of SEK 45 m (64) were raised. Bank loans of SEK 143 m (8) were repaid in the January– June 2024 period.

Investments and divestments

Investments of SEK 130 m (118) were made in intangible assets and property, plant and equipment, of which SEK 83 m (72) related to proprietary software.

Goodwill and other intangible assets

The Group's carrying amount of goodwill was SEK 3,131 m (2,800) on June 30, 2024. Other intangible assets amounted to SEK 1,005 m (758), and mainly comprised customer contracts, trademarks and software.

Deferred tax assets

Deferred tax assets amounted to SEK 35 m (20) as of June 30, 2024, of which SEK 6 m (6) pertained to tax loss carry-forwards. As of June 30, 2024, the Group's total loss carry-forwards were approximately SEK 72 m (70).

Equity

Equity as of June 30, 2024 was SEK 2,199 m (2,060), equivalent to SEK 16.49 (15.43) per share outstanding.

Share capital and incentive programs

Share capital was SEK 404 m at the end of the period. The quotient value per share was SEK 3.00. The division by share class as of June 30, 2024 was as follows:

Share class	No. of shares outstanding
Class A shares	3,948,696
Class B shares	130,579,536
Repurchased class B shares	-1,210,000
Total	133,318,232

Addnode Group AB's holding of treasury shares as of June 30, 2024 amounted to 1,210,000 class B shares, corresponding to 0.9 percent of the number of shares and 0.7 percent of the number of votes.

After a resolution by Addnode Group's 2024 AGM, an additional long-term incentive programme was launched for managers and senior executives. The program comprises the allotment of 130,500 share rights for the same number of class B shares to around 120 participants. Provided that the terms and conditions are fulfilled, any allotment of class B shares in Addnode Group with the support of share rights will take place after the publication of Addnode Group's Interim Report for the January 1–March 31, 2027 period.

As of June 30, 2024, there were three call option programs and one share rights program outstanding, as follows:

		Corre sponds to
Incentive program	No. of options/share rights outstanding	no. of shares	Exercise price
Stock option program
LTIP 2021	195,8001)	783,200	93.73
LTIP 2022	56,9501)	227,800	115.80
LTIP 2023	201,000	201,000	157.50
Total stock option program	453,750	1,212,000
Share rights program
LTIP 2024	130,500	130,500	–
Total	584,250	1,342,500

1) Each option carries entitlement to purchase four class B shares. For more information on LTIP 2021, LTIP 2022 and LTIP 2023, see note 4 on pages 96–97 of the Annual Report for 2023. For more information on LTIP 2024, see page 14.

Other disclosures

Employees

The average number of employees of the Group increased to 2,561 (2,360). As of June 30, 2024, there were 2,664 employees (2,654 as of December 31, 2023). Essentially, this increase was from acquired operations.

Related party transactions

For the January–June 2024 period, Chairman Staffan Hanstorp invoiced the Parent Company SEK 1.4 m (1.4) in fees for consulting services related to acquisition opportunities, financing matters and other strategic issues via a company.

Seasonality

The first and fourth quarters are today the strongest in terms of net sales, as a significant portion of contract renewals occurs during these quarters.

Parent Company

Net sales were SEK 19 m (16) in the January–June 2024 period, mainly invoicing to subsidiaries for premises rent and services rendered. Profit after financial items was SEK 24 m (-21) including SEK 117 m (44) in dividends from subsidiaries. Cash and cash equivalents amounted to SEK 379 m (576) as of June 30, 2024. Investments in shares in subsidiaries were SEK 36 m (63). There were no significant investments in intangible assets or property, plant and equipment.

Accounting policies

General

This Interim Report has been prepared in accordance with IAS 34 Interim Financial Reporting. The consolidated accounts have been prepared in accordance with IFRS as endorsed by the EU, and the Swedish Annual Accounts Act. The Parent Company's accounts have been prepared in accordance with the Annual Accounts Act, and RFR 2 Accounting for Legal Entities. Amendments and interpretations of existing standards first effective in 2024 had no impact on the Group's financial position or financial statements. The accounting policies and calculation methods are unchanged since the Annual Report for 2023.

Disclosures on financial instruments

Estimated contingent considerations for the acquisitions of Team D3 and Microdesk have been discounted. Measurement of financial assets and liabilities shows no significant difference between carrying amounts and fair value. The Group had no forward exchange contracts outstanding on June 30, 2024.

Stock option programs and share rights

The Group has two different types of incentive programs. The incentive programs from 2021, 2022 and 2023 enable senior executives to acquire class B shares by investing in call options. Call option premiums received, measured at market value at the acquisition date, are recognized in equity as transactions with owners.

The incentive program approved by the 2024 AGM pertains to performance-based share rights that may entitle the holder to class B shares. After the vesting period, shares are allotted to participants free of charge, provided that the performance condition is met and the total return on the company's shares during the period was positive.

2024 Annual General Meeting

Board of Directors and dividend

The Annual General Meeting (AGM) on May 7, 2024 re-elected Jan Andersson, Kristofer Arwin, Johanna Frelin, Staffan Hanstorp, Thord Wilkne, Kristina Willgård and Petra Ålund as Board members. Staffan Hanstorp was re-elected Chairman of the Board.

The Meeting approved a dividend of SEK 1.00 per share (1.00), unchanged from the previous year. The dividend totaled SEK 133 m (133) and was paid to shareholders on May 15, 2024.

Authorizations

The Meeting authorized the Board of Directors to decide on a new issue of class B shares on one or more occasions in the period until the following AGM, with or without departing from shareholders' preferential rights. The total maximum number of class B shares that could be issued with support from this authorization is 10 percent of the class B shares outstanding in the company at the time of the first exercise of the authorization. This authorization should also include entitlement to decide on the new issue of class B shares with provisions on payment in kind, or shares to be subscribed with right of offset or other terms and conditions stated in Chapter 13, Section 7 of the Swedish Companies Act.

The AGM also decided to authorize the Board of Directors to decide on the purchase and transfer of the company's own shares on one or more occasions in the period until the following AGM. The company may purchase a maximum number of class B shares in the company so that the company's holding following such purchase would be an aggregate maximum of 10 percent of the total number of shares in the company at any given time.

Other disclosures, cont.

Long-term incentive program

The AGM resolved to adopt a long-term performance share-based incentive program ("LTIP 2024") for managers of Addnode Group. The participants are allotted performance-based share rights that may entitle the holder to class B shares. After the vesting period, the participants will be allotted class B shares in Addnode Group free of charge, provided that the performance condition is met and the employee remains employed at the Group. The performance target that must be achieved or exceeded relates to average annual growth of the company's earnings per share during the 2024–2026 financial years (the "Measurement Period"). The minimum level for allotment is average annual growth of the company's earnings per share during the Measurement Period of 2 percent, and the maximum level for allotment is average annual growth during the Measurement Period of 12 percent. The allotment of class B shares also requires that the total return on the company's class B share has been positive during the term of the program. The maximum number of class B shares in Addnode Group that can be allotted under LTIP 2024 is to be limited to 138,000, corresponding to approximately 0.1 percent of all shares outstanding in Addnode Group. Any allotment of class B shares in Addnode Group with the support of share rights is normally to take place within ten working days after the publication of Addnode Group's Interim Report for the January 1–March 31, 2027 period. The vesting period commenced on May 30, 2024 and expires in conjunction with the publication of Addnode Group's Interim Report for the January 1–March 31, 2027 period.

Significant risks and uncertainties

Addnode Group's significant risks and uncertainties are stated on pages 30–32 and 38 of the Annual Report for 2023, under "Risks and uncertainties" on pages 74–75, as well as notes 36 and 37 on pages 115–118. These risks and uncertainties are unchanged.

The Group's operations are diversified over offerings, customer segments and geography, which implies risk diversification. This is a proven strength in challenging times like the Covid-19 pandemic.

Future outlook

The Board of Directors has not altered its assessment of Addnode Group's long-term outlook since the preceding quarter. In the First-quarter Interim Report for 2024, the Board of Directors stated the following outlook: In the long-term, Addnode Group regards the segments where it is active to have strong underlying potential. Addnode Group's growth strategy is to grow organically and by acquiring new businesses in the aim of adding new, complementary offerings and additional expertise.

The Russian invasion of Ukraine has had impacts on the global economy including increased oil and energy prices, higher interest rates and turmoil in global stock markets. The outbreak of war in the Gaza Strip, which followed Hamas' terrorist attack on Israel, has also contributed to growing turmoil. Because it is not possible to predict the duration or scope of this unrest or its impact on the global economy and general security, the Board of Directors notes a risk that Addnode Group may be impacted financially in 2024. Addnode Group is retaining its decision not to issue a forecast.

Certification

The Board of Directors and CEO certify that this Interim Report gives a true and fair view of the Parent Company's and Group's operations, financial position and results of operations, and describes significant risks and uncertainties facing the Parent Company and the companies in the Group.

Stockholm, Sweden, July 12, 2024

Staffan Hanstorp Chairman of the Board

Jan Andersson Board member

Kristofer Arwin Board member Johanna Frelin Board member

Thord Wilkne Board member

Kristina Willgård Board member

Petra Ålund Board member

Johan Andersson CEO

This Half-year Interim Report has not been reviewed by the company's auditors.

Condensed consolidated financial statements

Consolidated Income Statement

SEK m	Apr–Jun 2024	Apr–Jun 2023	Jan–Jun 2024	Jan–Jun 2023	Rolling 12 mos Jul–Jun 2023/2024	Full year 2023
Net sales	2,005	1,554	4,414	3,526	8,300	7,412
Purchases of goods and services	-1,002	-695	-2,310	-1,727	-4,292	-3,709
Gross profit/loss	1,003	859	2,104	1,799	4,008	3,703
Other external costs	-141	-135	-277	-260	-553	-536
Personnel costs	-711	-624	-1,432	-1,242	-2,749	-2,559
Capitalized work performed by the company for its own use	42	38	83	72	163	152
Depreciation/amortisation and impairment of
– property, plant and equipment	-31	-28	-63	-57	-126	-120
– intangible non-current assets	-66	-54	-132	-107	-255	-230
Operating profit	96	56	283	205	488	410
Financial income	25	11	42	15	73	46
Financial expenses	-49	-23	-97	-40	-167	-110
Revaluation of contingent considerations	0	–	0	–	16	16
Profit before tax	72	44	228	180	410	362
Current tax	-22	-14	-63	-51	-129	-117
Deferred tax	4	4	9	9	34	34
Net profit for the period	54	34	174	138	315	279
Attributable to:
Owners of the Parent Company	54	34	174	138	315	279
Share data
Earnings per share before and after dilution, SEK	0.41	0.25	1.31	1.03	2.36	2.09
Average number of shares outstanding:
Before dilution	133,318,232	133,498,232	133,318,232	133,498,232	133,343,683	133,433,183
After dilution	133,523,922	133,703,817	133,448,530	133,670,894	133,354,558	133,454,966

					Rolling 12 mos
SEK m	Apr–Jun 2024	Apr–Jun 2023	Jan–Jun 2024	Jan–Jun 2023	Jul–Jun 2023/2024	Full year 2023
Net profit for the period	54	34	174	138	315	279
Other comprehensive income, items that will not be reclassified to profit or loss:
Actuarial gains and losses on pension obligations	–	–	–	–	0	0
Other comprehensive income, items that may be reclassified to profit or loss:
Exchange rate difference on translation of foreign operations	-12	100	70	100	-46	-16
Hedge of net investments in foreign operations	5	-44	-29	-54	15	-9
Tax attributable to items that may be reclassified	1	–	1	–	1	–
Total other comprehensive income after tax for the period	-6	56	42	46	-30	-25
Comprehensive income for the period	48	90	216	184	285	254
Attributable to:
Owners of the Parent Company	48	90	216	184	285	254

Consolidated Statement of Comprehensive Income

Consolidated Balance Sheet

SEK m	2024 Jun 30	2023 Jun 30	2023 Dec 31
Assets
Goodwill	3,131	2,800	2,977
Other intangible non-current assets	1,005	758	972
Property, plant and equipment	326	219	346
Financial assets	76	57	73
Total non-current assets	4,538	3,834	4,368
Inventories	1	1	1
Other current assets	2,780	1,456	2,161
Cash and cash equivalents	770	1,188	667
Total current assets	3,551	2,645	2,829
Total assets	8,089	6,479	7,197
Equity and liabilities
Equity	2,199	2,060	2,116
Non-current liabilities	2,118	2,043	2,212
Current liabilities	3,772	2,376	2,869
Total equity and liabilities	8,089	6,479	7,197
Interest-bearing receivables amount to	–	3	3
Interest-bearing liabilities amount to	1,596	1,679	1,669
Pledged assets	15	11	9
Contingent liabilities	43	23	55

Equity and number of shares

	2024	2023	2023
Specification of changes in equity, SEK m	Jun 30	Jun 30	Dec 31
Equity, opening balance	2,116	2,005	2,005
Dividend	-133	-133	-133
Call options issued	–	4	4
Repurchase of the company's shares	–	–	-14
Comprehensive income for the period	216	184	254
Equity, closing balance	2,199	2,060	2,116
Equity attributable to:
Owners of the Parent Company	2,199	2,060	2,116
Number of shares outstanding, opening balance	133,318,232	133,498,232	133,498,232
Repurchase of the company's shares	–	–	-180,000
Number of shares outstanding, closing balance	133,318,232	133,498,232	133,318,232

Addnode Group held 1,210,000 (1,030,000) class B treasury shares on June 30, 2024.

Consolidated Statement of Cash Flows

					Rolling 12 mos
	Apr–Jun	Apr–Jun	Jan–Jun	Jan–Jun	Jul–Jun	Full year
SEK m	2024	2023	2024	2023	2023/2024	2023
Operating activities
Operating profit	96	56	283	205	488	410
Adjustment for non-cash items	84	94	177	174	364	361
Total	180	150	460	379	852	771
Net financial items	-44	-19	-56	-32	-87	-63
Tax paid	-35	-29	-78	-54	-159	-135
Cash flow from operating activities before changes in working capital	101	102	326	293	606	573
Total change in working capital	77	25	233	103	42	-88
Cash flow from operating activities	178	127	559	396	648	485
Investing activities
Purchases and sales of intangible assets and property, plant and equipment	-62	-53	-110	-95	-217	-202
Acquisitions of financial assets	0	-5	0	-5	-1	-6
Acquisitions of subsidiaries and operations	-2	-24	-101	-142	-488	-529
Cash and cash equivalents in acquired subsidiaries	0	–	5	5	65	65
Cash flow from investing activities	-64	-82	-206	-237	-641	-672
Financing activities
Dividend paid	-133	-133	-133	-133	-133	-133
Call options issued	–	4	–	4	–	4
Repurchase of the company's shares	–	–	–	–	-14	-14
Borrowings	0	505	45	569	45	569
Repayment of loans	-168	-24	-194	-58	-286	-150
Cash flow from financing activities	-301	352	-282	382	-388	276
Change in cash and cash equivalents	-187	397	71	541	-381	89
Cash and cash equivalents at start of period	968	746	667	600	1,188	600
Exchange rate difference in cash and cash equivalents	-11	45	32	47	-37	-22
Cash and cash equivalents at end of period	770	1,188	770	1,188	770	667

Parent Company financial statements

Parent Company Income Statement

					Rolling 12 mos
SEK m	Apr–Jun 2024	Apr–Jun 2023	Jan–Jun 2024	Jan–Jun 2023	Jul–Jun 2023/2024	Full year 2023
Net sales	14	13	19	16	36	32
Operating expenses	-31	-29	-58	-55	-109	-105
Operating loss	-17	-16	-39	-39	-73	-73
Profit from participations in Group companies	117	44	117	44	421	348
Other financial income	15	10	26	15	53	41
Financial expenses	-50	-24	-80	-41	-151	-112
Profit/loss after financial items	65	14	24	-21	250	204
Change in tax allocation reserve	–	–	–	–	1	1
Profit/loss before tax	65	14	24	-21	251	205
Tax	–	–	–	–	-13	-13
Net profit/loss for the period	65	14	24	-21	238	192

Parent Company Balance Sheet

	2024	2023	2023
SEK m	Jun 30	Jun 30	Dec 31
Assets
Property, plant and equipment	10	3	9
Financial assets	2,992	3,001	2,949
Current receivables	70	91	85
Cash and cash equivalents	379	576	404
Total assets	3,451	3,671	3,447
Equity and liabilities
Equity	1,372	1,282	1,481
Untaxed reserves	162	163	162
Provisions	62	85	58
Non-current liabilities	543	704	670
Current liabilities	1,312	1,437	1,076
Total equity and liabilities	3,451	3,671	3,447

Operating segments

The following figures pertain to the first half-year of each year.

Revenue, gross profit and profit

	Design		PLM		Process		Central		Eliminations		Addnode Group
SEK m	2024	2023	2024	2023	2024	2023	2024	2023	2024	2023	2024	2023
Revenue
External sales	2,835	1,988	908	889	671	649	–	–	–	–	4,414	3,526
Transactions between segments	3	3	14	12	6	6	12	9	-35	-30	0	0
Total revenue	2,838	1,991	922	901	677	655	12	9	-35	-30	4,414	3,526
Gross profit	1,116	861	454	425	546	524	12	9	-24	-20	2,104	1,799
Gross margin, %	39.3	43.2	49.2	47.2	80.6	80.0	–	–	–	–	47.7	51.0
EBITA	254	179	78	46	124	124	-41	-37	–	–	415	312
EBITA margin, %	8.9	9.0	8.5	5.1	18.3	18.9	–	–	–	–	9.4	8.8
Operating profit	186	132	46	14	93	96	-42	-37	–	–	283	205
Operating margin, %	6.6	6.6	5.0	1.6	13.7	14.7	–	–	–	–	6.4	5.8
Total net operating assets	1,922	1,480	751	681	1,000	926	83	29	–	–	3,756	3,116
Average number of employees	1,094	925	728	750	725	673	14	12	–	–	2,561	2,360

Revenue breakdown

	Design		PLM		Process		Central		Eliminations		Addnode Group
SEK m	2024	2023	2024	2023	2024	2023	2024	2023	2024	2023	2024	2023
Licenses	28	35	67	114	20	25	–	–	–	–	114	174
Recurring revenue	2,379	1,604	588	545	309	283	–	–	–	–	3,275	2,432
Services	409	325	252	228	326	322	–	–	-9	-10	978	865
Other	22	27	15	14	22	25	12	9	-24	-20	47	55
Total revenue	2,838	1,991	922	901	677	655	12	9	-35	-30	4,414	3,526

Addnode Group operates through three divisions: Design Management, Product Lifecycle Management and Process Management. The Group's decentralized governance model means mission-critical decisions are taken close to the customer and market. Companies develop their businesses in accordance with strategies, guidelines and Group-wide values. The divisions are the operating segments that Addnode Group uses to monitor the performance and development of its business. There has been no change to the operating segments since the most recent Annual Report.

The difference between the total of the segments' operating profit and consolidated profit before tax consists of financial income of SEK 42 m (15) and financial expenses of SEK -97 m (-40).

Acquisitions completed in the January–June 2024 period meant that net operating assets in segments increased to only a limited extent compared with the disclosures in the Annual Report for 2023: PLM by SEK 79 m and Process Management by SEK 19 m. Net operating assets are defined as the total of goodwill and other intangible non-current assets, property, plant and equipment, financial assets, trade receivables and other operating assets, less trade payables and other operating liabilities.

Key figures

			Rolling 12 mos	Full year
	Jan–Jun 2024	Jan–Jun 2023	Jul–Jun 2023/2024	2023	2022	2021	2020
Net sales, SEK m	4,414	3,526	8,300	7,412	6,225	4,077	3,807
Design Management	2,838	1,991	5,139	4,292	3,494	1,852	1,860
Product Lifecycle Management	922	901	1,905	1,884	1,580	1,227	1,141
Process Management	677	655	1,303	1,281	1,182	1,020	827
Gross profit, SEK m	2,104	1,799	4,008	3,703	3,234	2,309	2,092
Design Management	1,116	862	2,076	1,821	1,517	858	821
Product Lifecycle Management	454	425	912	883	788	636	589
Process Management	546	524	1,043	1,021	942	826	694
Gross margin, %	47.7	51.0	48.3	50.0	51.9	56.6	55.0
Design Management	39.3	43.3	40.4	42.4	43.4	46.3	44.1
Product Lifecycle Management	49.2	47.2	47.9	46.9	49.9	51.8	51.6
Process Management	80.6	80.0	80.1	79.7	79.7	81.0	83.9
EBITA, SEK m	415	3121)	7432)	6403)	7284)	461	356
Design Management	254	179	409	334	398	204	190
Product Lifecycle Management	78	461)	1752)	1433)	158	117	57
Process Management	124	124	244	244	226	195	151
EBITA margin, %	8.1	8.81)	9.02)	8.63)	11.7	11.3	9.4
Design Management	8.9	9.0	8.0	7.8	11.4	11.0	10.3
Product Lifecycle Management	8.5	5.11)	9.22)	7.63)	10.0	9.5	5.0
Process Management	18.3	18.9	18.7	19.0	19.1	19.1	18.3
Average number of employees	2,561	2,360	-	2,455	2,137	1,776	1,758
Design Management	1,094	925	-	1,016	793	560	565
Product Lifecycle Management	728	750	-	740	687	613	654
Process Management	725	673	-	686	648	595	532

1) EBITA has been charged with restructuring costs of SEK 10 m. Addnode Group's EBITA adjusted for restructuring costs was SEK 322 m, and the adjusted EBITA margin amounted to 9.1 percent.

2) EBITA has been charged with restructuring costs of SEK 10 m. Addnode Group's EBITA adjusted for restructuring costs was SEK 753 m, and the adjusted EBITA margin amounted to 9.1 percent.

3) EBITA has been charged with restructuring costs of SEK 20 m. Addnode Group's EBITA adjusted for restructuring costs was SEK 660 m, and the adjusted EBITA margin amounted to 8.9 percent.

4) In the results, there was a capital gain of SEK 24 m from the disposal of an office property in the United Kingdom.

Key figures, cont.

			Rolling 12 mos	Full year
	Jan–Jun 2024	Jan–Jun 2023	Jul–Jun 2023/2024	2023	2022	2021	2020
Cash flow from operating activities, SEK m	178	396	269	487	714	437	579
Change in net sales, %	25	24	-	19	53	7	11
Operating margin, %	6.4	5.8	5.9	5.5	8.5	7.5	6.0
Return on capital employed, %1)	15.3	15.4	15.3	13.8	19.6	13.0	10.6
Return on equity, %1)	14.8	17.9	14.8	13.5	20.7	13.9	11.2
Equity/assets ratio, %	27	32	27	29	32.3	39.2	39.6
Equity, SEK m	2,198	2,060	2,198	2,116	2,005	1,693	1,512
Net debt, SEK m	825	488	825	999	463	368	182
Debt/equity ratio, %	38	24	38	47	23	22	12

1) Key figures have been adjusted to reflect annualized return.

Share data1)		Rolling 12 mos Full year
	Jan–Jun 2024	Jan–Jun 2023	Jul–Jun 2023/2024	2023	2022	2021	2020
Average number of shares outstanding before and after dilution, m	133.3	133.5	133.3	133.4	133.6	134.2	133.6
Total number of shares outstanding, m	133.3	133.5	133.3	133.3	133.5	133.7	133.7
Earnings per share before and after dilution, SEK	1.31	1.03	2.36	2.09	2.86	1.66	1.22
Cash flow from operating activities per share, SEK	4.19	2.19	4.86	3.63	5.34	3.27	4.33
Equity per share, SEK	16.49	15.43	16.49	15.9	15.0	12.7	11.3
Share price at end of period, SEK	121.90	83.50	121.90	85.3	98.4	107.3	71.5
Share price/equity	7.39	5.41	7.39	5.37	6.55	8.47	6.32

1) Due to the 4:1 share split executed in May 2022, historical key financial ratios based on the number of shares have been recalculated.

Key figures (quarter information)

		2024		2023	2022
	Q2	Q1	Q4	Q3	Q2	Q1	Q4	Q3
Net sales, SEK m	2,005	2,409	2,078	1,808	1,554	1,972	1,786	1,624
Design Management	1,214	1,624	1,246	1,055	778	1,213	1,004	977
Product Lifecycle Management	468	454	499	484	468	433	455	393
Process Management	335	342	346	280	320	335	335	262
Gross profit, SEK m	1,003	1,101	1,010	893	859	940	902	822
Design Management	507	609	512	448	388	474	425	418
Product Lifecycle Management	230	224	232	226	217	208	219	198
Process Management	272	274	273	224	260	264	262	209
Gross margin, %	50.0	45.7	48.6	49.4	55.3	47.7	50.5	50.6
Design Management	41.8	37.5	41.1	42.5	49.8	39.0	42.3	42.8
Product Lifecycle Management	49.1	49.3	46.5	46.7	46.4	48.0	48.1	50.5
Process Management	81.2	80.1	78.9	80.1	81.2	78.8	78.3	79.8
EBITA, SEK m	162	253	1961)	1322)	1103)	202	200	194
Design Management	86	168	98	57	48	131	111	118
Product Lifecycle Management	37	41	541)	432)	203)	26	44	45
Process Management	59	65	67	53	60	64	60	50
EBITA margin, %	8.1	10.5	9.41)	7.32)	7.13)	10.2	11.2	11.9
Design Management	7.1	10.3	7.9	5.4	6.2	10.8	11.1	12.1
Product Lifecycle Management	7.9	9.0	10.81)	8.92)	4.33)	6.0	9.7	11.5
Process Management	17.6	19.0	19.4	18.9	18.8	19.1	17.9	19.1
Average number of employees	2,566	2,549	2,552	2,553	2,364	2,334	2,252	2,201
Design Management	1,096	1,091	1,098	1,115	933	916	857	840
Product Lifecycle Management	725	724	728	734	744	736	712	691
Process Management	731	720	712	690	675	671	673	661

1) EBITA has been charged with restructuring costs of SEK 5 m (-). Addnode Group's EBITA adjusted for restructuring costs was SEK 201 m (200), and the adjusted EBITA margin amounted to 9.7 percent (11.2).

2) EBITA has been charged with restructuring costs of SEK 5 m (-). Addnode Group's EBITA adjusted for restructuring costs was SEK 137 m (194), and the adjusted EBITA margin amounted to 7.6 percent (11.9).

3) EBITA has been charged with restructuring costs of SEK 10 m (-). Addnode Group's EBITA adjusted for restructuring costs was SEK 120 m (154), and the adjusted EBITA margin amounted to 7.7 percent (10.3).

Key figures, cont.

	2024		2023				2022
	Q2	Q1	Q4	Q3	Q2	Q1	Q4	Q3
Cash flow from operating activities, SEK m	178	381	228	-139	127	269	261	89
Change in net sales, %	2	22	16	11	4	49	60	75
Operating margin, %	4.8	7.8	6.5	3.9	3.6	7.6	8.3	8.8
Return on capital employed, %1)	15.3	14.3	13.8	13.4	15.4	18.0	19.6	18.1
Return on equity, %1)	14.8	13.5	13.5	14.0	17.9	19.4	20.7	20.2
Equity/assets ratio, %	27	28	29	31	32	35	32	34
Equity, SEK m	2,198	2,284	2,116	2,056	2,060	2,099	2,005	1,890
Net debt, SEK m	825	816	999	1,103	488	381	463	659
Debt/equity ratio, %	38	36	47	54	24	18	23	35

1) Key figures have been adjusted to reflect annualized return.

Share data1)

	2024			2023	2022
	Q2	Q1	Q4	Q3	Q2	Q1	Q4	Q3
Average number of shares outstanding before and after dilution, m	133.3	133.3	133.3	133.4	133.5	133.5	133.5	133.6
Total number of shares outstanding, m	133.3	133.3	133.3	133.3	133.5	133.5	133.5	133.5
Earnings per share before and after dilution, SEK	0.41	0.90	0.80	0.26	0.25	0.78	0.77	0.77
Cash flow from operating activities per share, SEK	1.34	2.87	1.71	-1.04	0.95	2.02	1.96	0.67
Equity per share, SEK	16.49	17.13	15.87	15.42	15.43	15.72	15.02	14.16
Share price at end of period, SEK	121.90	114.40	85.30	66.75	83.50	124.70	98.40	77.45
Share price/equity	7.39	6.68	5.37	4.33	5.41	7.93	6.55	5.47

1) Due to the 4:1 share split executed in May 2022, historical key financial ratios based on the number of shares have been recalculated.

Alternative performance measures, use and reconciliation

The European Securities and Markets Authority (ESMA) has issued guidelines for disclosures on Alternative Performance Measures (APMs) for companies with securities listed on a regulated market in the EU, which apply to Alternative Performance Measures in published mandatory information. Alternative Performance Measures are financial metrics on historical or future performance of earnings, financial position, financial results or cash flows that are not defined or stated in the applicable rules for financial reporting. Certain performance metrics are used in this Interim Report that are not defined in IFRS, with the intention of offering investors, financial analysts and other stakeholders clear and relevant information on the company's operations and performance. The use of these performance metrics and reconciliation with the financial statements are presented below.

EBITA

EBITA is a metric the Group considers relevant to investors, financial analysts and other stakeholders to understand earnings generation before investments in intangible non-current assets. This measure is an expression of operating profit before the amortization and impairment of intangible non-current assets.

Net debt

The Group considers this key figure useful to the readers of financial statements as a complement in evaluating dividend potential, making strategic investments and assessing the Group's potential to satisfy financial obligations. This key figure is an expression of the level of financial borrowing in absolute terms after deducting cash and cash equivalents.

Reconciliation of EBITA

Definitions on page 27.

	Apr–Jun 2024	Apr–Jun 2023	Jan–Jun 2024	Jan–Jun 2023	Rolling 12 mos Jul–Jun 2023/2024	Full year 2023
Operating profit	96	56	283	205	488	410
Amortization and impairment of intangible non-current assets	66	54	132	107	255	230
EBITA	162	110	415	312	743	640

Reconciliation of net debt

	2024	2023	2023
	Jun 30	Jun 30	Dec 31
Non-current liabilities	2,118	2,043	2,212
Current liabilities	3,772	2,376	2,869
Non-interest-bearing non-current and current liabilities	-4,294	-2,740	-3,412
Total interest-bearing liabilities	1,596	1,679	1,669
Cash and cash equivalents	-770	-1,188	-667
Other interest-bearing receivables	–	-3	-3
Net debt (+)/receivable (–)	825	488	999

Definitions

Return on equity

Profit after tax as a percentage of average equity. Based on profit for the last 12 months and the average of the opening and closing balances of equity.

Return on capital employed

Profit before tax plus financial expenses as a percentage of average capital employed. It is based on profit for the last 12 months and the average of the opening and closing balance of capital employed.

Share price/equity

Share price in relation to equity per share.

Gross profit

Net sales less purchases of goods and services.

Gross margin

Gross profit as a percentage of net sales.

EBITA

Earnings before amortization and impairment of intangible assets.

EBITA margin

EBITA as a percentage of net sales.

Equity

Reported equity plus untaxed reserves less deferred tax at the current tax rate.

Equity per share

Equity divided by the total number of shares outstanding.

Cash flow per share

Cash flow from operating activities divided by the average number of shares outstanding.

Average number of employees

Average number of employees in the period (full-time equivalents).

Net debt

Interest-bearing liabilities less cash and cash equivalents and other interest-bearing receivables. According to this definition, negative net debt means that cash and cash equivalents and other interest-bearing financial assets exceed interest-bearing liabilities.

Net sales per employee

Net sales divided by the average number of employees (full-time equivalents).

Organic growth

Change in net sales excluding acquired entities in the most recent 12-month period.

Earnings per share

Profit after tax divided by the average number of shares outstanding.

Operating margin

Operating profit as a percentage of net sales.

Debt/equity ratio

Net debt in relation to equity (including equity attributable to non-controlling interests).

Equity/assets ratio

Equity (including equity attributable to non-controlling interests) as a percentage of total assets.

Capital employed

Total assets less non-interest-bearing liabilities and non-interest-bearing provisions including deferred tax liabilities.

Currency-adjusted organic growth

Change in net sales, restated using the preceding year's exchange rates, excluding acquired entities in the most recent 12-month period.

Recurring revenue

Revenue of an annually recurring character such as revenue from support and maintenance agreements and revenue from subscription agreements, lease contracts and SaaS solutions.

Design Management division Product Lifecycle Management division

Process Management division

ADDNODE GROUP AB (publ) Norra Stationsgatan 93A, SE-113 64 Stockholm

Corporate identity number: 556291-3185 +46 (0)8 630 70 70 info@addnodegroup.com addnodegroup.com

For more information, please contact: Johan Andersson, President and CEO, johan.andersson@addnodegroup.com +46 (0)70 420 58 31

Kristina Elfström Mackintosh, CFO, kristina.mackintosh@addnodegroup.com +46 (0)70 633 89 90