Quarterly Report • Apr 27, 2016
Quarterly Report
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This is a translation of the Swedish version of Addnode Groups interim report for the first quarter 2016
PROPORTION OF 52%
RECURRING REVENUE
+25%
GROWTH COMPARED WITH THE YEAR-EARLIER PERIOD
600 000
TOTAL NUMBER OF USERS OF OUR SOFTWARE
For more information, please contact: Staffan Hanstorp, President and CEO [email protected] +46 (0) 733 77 24 30
Johan Andersson, CFO [email protected] +46 (0) 704 20 58 31
Contact Address Addnode Group AB (publ.) Hudiksvallsgatan 4B SE-113 30 STOCKHOLM
Corporate identity 556291-3185
Telephone number +46 8 506 66 210
Website
www.addnodegroup.com
The information in this interim report is such that Addnode Group must disclose in accordance with the Swedish Securities and Clearing Operations Act and/or the Financial Instruments Trading Act. The information was released on April 27, 2016, at 10:00 a.m.
"Our business concept, which involves a large proportion of prepaid support and maintenance agreements, generated a highly robust cash flow during the period.
We are starting the year by reporting strong first-quarter growth of 25 percent compared with the year-earlier period. The main underlying reason is our July 2015 acquisition of Transcat PLM. Our cash flow is very robust during the period and our recurring revenue from support and maintenance accounted for 52 percent of net sales. This is the highest share on record for a first quarter. The result is affected by the transition of our Autodesk business and that we have not been able to gain full leverage in some our units.
Over the past number of years, we have gradually transformed Cad-Q in the Design Management business area from a dedicated CAD supplier to a broad-based strategic business partner offering software and services for design, construction and product data information. To highlight the transformation that has occurred, Cad-Q has been renamed Symetri and its profile and organization – with 300 employees in the Nordic region and the UK – has been more clearly defined. We have also strengthened and supplemented our current facility management offering through our acquisition in February of the software company 5D System.
In the Product Lifecycle Management business area, TechniaTranscat's transformation is ongoing, taking it from a Nordic organization with about 160 employees to a European international organization with more than 400 employees. In parallel with our integration efforts, we are now securing major agreements with customers in the Nordic region, Germany and the US; an achievement that would not have been possible if the companies had continued to act independently, thus demonstrating the strength of the combined company and offering.
The Process Management business area reported a stable start to the year with several new customer agreements and there is positive momentum throughout the organization. For example, we received a letter of allotment from the City of Gothenburg valued at more than SEK 35 M, which was appealed after the close of the period and we are awaiting the decision of the Administrative Court of Appeal. I believe there is major potential moving forward to further advance the business area's offering to target public authorities, municipalities and sectors such as schools and health and care services, where our systems can have major societal benefit.
We are one of the leading suppliers in Europe of software and services for design, construction and product data information in an international market where we are continuing to secure customer agreements. In parallel, we contribute to the welfare of society through digitalization of the Swedish public sector by providing IT solutions that can process large volumes of documents and cases. We constantly evaluate acquisitions to strengthen our offering and continue our profitable journey of growth. Together with our customers, we simplify and improve everyday life for the more than 600,000 engineers and administrators across the globe who use one of our software or systems solutions on a daily basis.
Staffan Hanstorp, President and CEO
Recurring revenue pertains to support and maintenance, which also includes revenues from SaaS solutions.
Cad-Q (under name change to Symetri), a company in the Design Management business area, signed an agreement with a leading Swedish engineering consultancy company with operations in over 30 countries. The agreement includes Autodesk's software platform and the purchase of software, license management, training and consulting services. The agreement, which is an extension of the existing agreement, has an order value of SEK 31 M and extends over three years.
TechniaTranscat, a company in the Product Lifecycle Management business area, renewed and extended the existing agreement with a German car manufacturer. The agreement, which includes the development and management of existing product data systems and support services, has an estimated order value of approximately SEK 75 M over three years.
5D System (5D Systemkonsult AB) is a Swedish software company that provides facility management systems to the private and public sectors. The company reported sales of SEK 22 M in its split 2014/15 fiscal year, with operating profit of SEK 4 M and an operating margin of 19 percent. The company is included in the Design Management business area and transfer of the operation occurred on February 1, 2016. The acquisition was paid in cash and is expected to have a marginally positive impact on Addnode Group's earnings per share.
The Board of Directors proposes an unchanged dividend of SEK 2.25 (2.25) per share. The assessment is that the company will have sufficient funds after the proposed dividend to be able to achieve its financial targets.
Kartena, a company in the Process Management business area, received a letter of allotment for a planning and monitoring system for the City of Gothenburg. The order value is approximately SEK 35 M over four years with an option to extend of one plus one year. A request for appeal has been filed with the Administrative Court of Appeal and we are awaiting its decision.
Tekis and Cartesia, two subsidiaries in the Process Management business area, are being merged with the aim of strengthening their customer offering. The combined company will offer effective and user-friendly business support to customers in the private and public sectors. The merged company has a total of 120 employees.
Cad-Q started in 1989 as a CAD supplier. Since then, the company has gradually transitioned to become a strategic commercial partner offering software and services for design, construction and product data information. As a step in this transformation process, the company is now being renamed Symetri. Symetri has about 300 employees and is part of the Design Management business area.
Decerno, a company in the Process Management business area, has signed a framework agreement with Inera regarding e-health application management. The agreement spans a period of four years and has an annual estimated potential contract volume of SEK 80-120 M. A second round of competition will take place among the 12 companies that have signed the framework agreement.
Net sales rose 25 percent to SEK 540.8 M (431.8). Software revenue rose to SEK 75 M (59), revenue from support and maintenance agreements increased to SEK 280 M (214), revenue from services rose to SEK 167 M (149) and revenue from others increased to SEK 18 M (10). EBITA amounted to SEK 30.6 M (33.7), corresponding to an EBITA margin of 5.7 percent (7.8).
The Design Management business area reported stable earnings despite a challenging market, the impact of lower license sales and the change of Autodesk's business model. There was a major internal focus during the quarter on the transition to a new organization and the transformation to the Symetri brand. While the Product Lifecycle Management business area posted sharp growth attributable to the acquisition of Transcat PLM, the margin did not achieve the corresponding rate of increase, due to lower margins for Transcat PLM's product mix than
Net sales, quarterly trend, SEK M
The Addnode Group's operations are seasonal. The fourth quarter normally has the highest net sales and EBITA.
Quarterly LTM
for the Group in general and not been able to gain full leverage in the Nordic organization. The Process Management business area reported a stable start to the year in a healthy market. The Content Management business area did not have a sufficiently high degree of utilization during the period, which impacted earnings.
Net financial items were an expense of SEK 1.4 M (income: 1.2). Tax recognized for the period amounted to an expense of SEK 4.1 M (expense: 6.0) and profit after tax amounted to SEK 12.7 M (19.6). Earnings per share after dilution amounted to SEK 0.42 (0.66).
Cash flow from operating activities totaled SEK 150.2 M (40.5) during the quarter, of which the majority was related to advance payments for support and maintenance agreements (it is common for customers to prepay for one year ahead). This annual pattern in cash flow has been accentuated with the acquisition of Transcat PLM.
1) Excluding the revaluation of conditional purchase considerations and non-recurring costs for organizational changes.
2) Before elimination of invoicing between the business areas and central costs.
Addnode Group has two core businesses and is organized in four business areas. For more information about each business area, please visit to www.addnodegroup.com
IT solutions for design and construction.
In the first quarter, net sales amounted to SEK 225.8 M (228.5). EBITA amounted to SEK 14.8 M (17.0), corresponding to an EBITA margin of 6.6 percent (7.4). The business area posted stable earnings despite a challenging market. The quarter was characterized by the
transition to a new organization and the transformation to the Symetri brand. The downturn in license sales as a result of the change-over of Autodesk's business model is now clear, and license sales of third-party products are declining. Construction in Sweden is showing stable development and Norway is continuing to perform relatively strongly in a soft market. The project tools offering has trended positively and we added new customers and increased the number of users of our systems. During the period, we completed an acquisition of the software company 5D System, which will reinforce our offering in the facility management sector.
The business area secured agreements with such customers as Akademiska Hus, ATOS IT Services, Kone, Midroc Automation, Powell, SCA, Skanska, SKF, Statoil, the Norwegian Public Roads Administration and Valmet Technologies.
IT solutions for document and case management.
In the first quarter, net sales amounted to SEK 110.8 M (111.2) and EBITA was SEK 14.4 M (15.5), corresponding to a margin of 13.0 percent (13.9). The business area reported a stable beginning to the year, with projectrelated operations that specialize in case
management systems having a particularly positive start. During the quarter, the business area received a letter of allotment for a planning and monitoring system in the City of Gothenburg valued at about SEK 35 M. However, a request for appeal has subsequently been filed. The subsidiaries Tekis and Cartesia were merged under the name Sokigo to form an organization with 120 employees. Sokigo is a leader in the Swedish market for GIS and municipal engineering systems with a strong product portfolio and broad service offering.
The business area secured agreements from such customers as Alfa Laval, the Swedish Social Insurance Administration, the Legal, Financial and Administrative Services Agency, the City of Malmö, Norsk Reiselivsforum, the Swedish Police, the Swedish National Heritage Board, Swedish Tax Agency, Swedbank and the Swedish Prosecution Authority.
IT solutions for product data information.
In the first quarter, net sales rose to SEK 176.4 M (59.2) and EBITA increased to SEK 8.8 M (5.6), corresponding to an EBITA margin of 5.0 percent (9.5). The robust growth was attributable to the acquisition of Transcat PLM in July 2015. The integration of Transcat
PLM and Technia is progressing according to plan and the new combined company has secured new customer agreements; an achievement that would not have been possible if the companies had continued to act independently. A number of large contracts were signed with customers which, for competitive reasons, we cannot name. The US trended positively during the period, while it was not possible to gain full leverage in ongoing projects in the Nordic region. The market in Germany was favourable with stable capacity utilization and sales of software.
The business area secured agreements with such customers as 3CON Anlagenbau, EDag Engineering, FACC Operations, H&M, Husqvarna, Karl Fazer AB, OKG, Parker Hannifin, Seco Tools and ÖoB.
IT solutions for web and e-commerce, telecom as well as voice-driven and customer services.
In the first quarter, net sales amounted to SEK 33.5 M (37.2) and EBITA was negative SEK 0.4 M (pos: 2.5), corresponding to a negative margin of 1.2 percent (pos: 6.7). The business area's sales and degree of utilization were insufficient during the quarter, which
impacted earnings. The market is positive and the business area is receiving a good response from customers, who appreciate its offering as a digital transformation partner.
The business area secured agreements from such customers as AB Trav och Galopp, Atlas Copco, Blocket, Eventum, SAS, SJ, Sodexo, TDC Sverige, Viasat and World Lottery Association.
| Net sales, SEK M | 2014 Q2 |
2014 Q3 |
2014 Q4 |
2015 Q1 |
2015 Q2 |
2015 Q3 |
2015 Q4 |
2016 Q1 |
LTM April 2015 March 2016 |
Full Year 2015 |
|---|---|---|---|---|---|---|---|---|---|---|
| Design Management | 165.2 | 180.4 | 230.2 | 228.5 | 184.0 | 161.7 | 253.5 | 225.8 | 825.0 | 827.7 |
| Product Lifecycle Management | 68.6 | 57.1 | 75.4 | 59.2 | 62.2 | 186.6 | 204.6 | 176.4 | 629.8 | 512.6 |
| Process Management | 107.1 | 90.0 | 125.0 | 111.2 | 109.0 | 92.5 | 127.6 | 110.8 | 439.9 | 440.3 |
| Content Management | 37.3 | 31.1 | 35.9 | 37.2 | 37.3 | 29.4 | 36.0 | 33.5 | 136.2 | 139.9 |
| Elim/central | -6.9 | -4.1 | -5.1 | -4.3 | -5.2 | -2.9 | -7.3 | -5.7 | -21.1 | -19.7 |
| Addnode Group | 371.3 | 354.5 | 461.4 | 431.8 | 387.3 | 467.3 | 614.4 | 540.8 | 2,009.8 | 1,900.8 |
| EBITA, SEK M | 2014 Q2 |
2014 Q3 |
2014 Q4 |
2015 Q1 |
2015 Q2 |
2015 Q3 |
2015 Q4 |
2016 Q1 |
LTM April 2015 March 2016 |
Full Year 2015 |
|---|---|---|---|---|---|---|---|---|---|---|
| Design Management | 8.2 | 15.9 | 27.0 | 17.0 | 10.6 | 13.1 | 25.1 | 14.8 | 63.6 | 65.8 |
| Product Lifecycle Management | 9.4 | 7.2 | 17.9 | 5.6 | 3.5 | 15.9 | 27.7 | 8.8 | 55.9 | 52.7 |
| Process Management | 15.4 | 15.4 | 24.2 | 15.5 | 15.0 | 18.2 | 21.3 | 14.4 | 68.9 | 70.0 |
| Content Management | 0.2 | 0.9 | 0.3 | 2.5 | 2.3 | 1.5 | 2.3 | -0.4 | 5.7 | 8.6 |
| Elim/central | -5.9 | -5.4 | -6.0 | -6.9 | -8.8 | -6.5 | -6.9 | -7.0 | -29.2 | -29.1 |
| Addnode Group | 27.3 | 34.0 | 63.4 | 33.7 | 22.6 | 42.2 | 69.5 | 30.6 | 164.9 | 168.0 |
| LTM April 2015 |
||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| EBITA-margins, % | 2014 Q2 |
2014 Q3 |
2014 Q4 |
2015 Q1 |
2015 Q2 |
2015 Q3 |
2015 Q4 |
2016 Q1 |
March 2016 |
Full Year 2015 |
| Design Management | 5.0% | 8.8% | 11.7% | 7.4% | 5.8% | 8.1% | 9.9% | 6.6% | 7.7% | 7.9% |
| Product Lifecycle Management | 13.7% | 12.6% | 23.7% | 9.5% | 5.6% | 8.5% | 13.5% | 5.0% | 8.9% | 10.3% |
| Process Management | 14.4% | 17.1% | 19.4% | 13.9% 13.8% | 19.7% | 16.7% | 13.0% | 15.7% | 15.9% | |
| Content Management | 0.5% | 2.9% | 0.8% | 6.7% | 6.2% | 5.1% | 6.4% | -1.2% | 4.2% | 6.1% |
| Addnode Group | 7.4% | 9.6% | 13.7% | 7.8% | 5.8% | 9.0% | 11.3% | 5.7% | 8.2% | 8,8% |
| 2014 | 2014 | 2014 | 2015 | 2015 | 2015 | 2015 | 2016 | Full Year | |
|---|---|---|---|---|---|---|---|---|---|
| Average number of employees | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | 2015 |
| Design Management | 298 | 314 | 316 | 317 | 321 | 316 | 314 | 314 | 317 |
| Product Lifecycle Management | 162 | 165 | 161 | 160 | 160 | 385 | 408 | 406 | 281 |
| Process Management | 276 | 273 | 272 | 277 | 271 | 271 | 281 | 274 | 275 |
| Content Management | 142 | 137 | 128 | 124 | 124 | 130 | 122 | 116 | 125 |
| Central | 8 | 7 | 8 | 8 | 8 | 7 | 7 | 7 | 7 |
| Addnode Group | 886 | 896 | 885 | 886 | 884 | 1,109 | 1,132 | 1,117 | 1,005 |
*EBITA and the EBITA margin in this section are recognized excluding the revaluation of conditional
purchase considerations.
Addnode Group's operations are seasonal. The fourth quarter normally has the highest net sales and EBITA.
The Group's cash and cash equivalents totaled SEK 241.6 M on March 31, 2016 (102.9 on December 31, 2015). Cash flow from operating activities amounted to SEK 150.2 M (40.5) in the first quarter of 2016. The healthy cash flow was largely attributable to advance payments from customers for support and maintenance agreements. Cash flow from investing activities for 2016 includes payments for proprietary software in the amount of SEK 11.8 M (9.6). A new bank loan of SEK 29.5 M was raised at the end of January 2016. On March 31, 2016, the Group's interest-bearing liabilities amounted to SEK 149.0 M (126.6 on December 31, 2015) and net interestbearing assets and liabilities amounted to SEK 93.1 M (neg: 23.2). The equity/assets ratio was 48 percent (48) on March 31, 2016. The proposed dividend is anticipated to entail a payment of SEK 68.5 M in May 2016. The Parent Company has an existing agreement for a credit facility amounting to SEK 100 M. Since January 2015, the Parent Company also has an agreement covering a credit facility of up to SEK 200 M to finance future acquisitions, of which SEK 123 M had been drawn upon up until the date of publication of this interim report.
Investments in intangible and tangible fixed assets amounted to SEK 17.4 M (14.9), of which SEK 11.8 M (9.6) related to proprietary software and SEK 4.9 M (5.3) to equipment.
On March 31, 2016, the consolidated carrying amount of goodwill amounted to SEK 916.2 M (889.2 on December 31, 2015). The carrying amount of brands totaled SEK 12.2 M (12.1). Other intangible assets amounted to SEK 170.0 M (159.9) and pertained primarily to customer agreements and software.
On March 31, 2016, total recognized deferred tax assets amounted to SEK 10.9 M, of which SEK 6.5 M was attributable to tax loss carryforwards. The Group's accumulated tax loss carryforwards totaled approximately SEK 44 M on March 31, 2016. The deferred tax assets attributable to tax loss carryforwards are recognized as assets insofar as it is probable that the tax loss carryforwards will be deductible against surpluses in future taxation.
On March 31, 2016, shareholders' equity amounted to SEK 936.8 M (916.6), corresponding to SEK 30.79 (30.12) per share outstanding. The changes in the number of shares outstanding and shareholders' equity are presented on page 11. The Board of Directors proposes that the Annual General Meeting on April 28, 2016 resolves to pay a dividend totaling SEK 68.5 M. On March 31, 2016, there were no outstanding share-savings, options or convertibles programs.
Provisions, which in the consolidated balance sheet are included among long-term and current liabilities, amounted to SEK 54.5 M on March 31, 2016, of which SEK 46.2 M pertained to estimated conditional purchase considerations for implemented company acquisitions. During the second quarter of 2016, it is anticipated that payments of conditional purchase considerations will amount to approximately SEK 9 M.
During the first quarter of 2016, the average number of employees in the Group was 1,117 (886). At the end of the period, the number of employees was 1,216 (1,202 on December 31, 2015).
On February 1, 2016, an agreement was signed to acquire all shares in 5D Systemkonsult AB, with transfer on the same date. For the fiscal year of May 2014 - April 2015, the company reported net sales of SEK 22 M and operating profit of SEK 4 M. It is a Swedish software company that provides facility management systems to customers in both the private and public sectors. 5D Systemkonsult has 20 employees and will, as of the date of transfer, become part of the Design Management business area, which has a strong offerings history in terms of providing systems to the construction and facility management sectors. The acquisition will supplement and strengthen these offerings further.
According to the preliminary acquisition assessment, goodwill and other acquisition-related intangible assets arising through the acquisition are estimated to amount to about SEK 31 M, which gives rise to a deferred tax liability of approximately SEK 2 M. Other acquired assets and liabilities pertain primarily to accounts receivable, cash and cash equivalents and deferred income. During the first quarter of 2016, the acquisition did not have any significant impact on consolidated net sales and profit after tax. If the acquisition had been implemented on January 1, 2016, consolidated net sales for the first quarter of 2016 would have amounted to approximately SEK 543 M and profit after tax to about SEK 12 M. Costs totaling SEK 0.1 M for implementing the acquisition are included in Addnode Group's other external costs for 2016.
The Group's risk exposure in respect of financial instruments is relatively limited. No financial assets or liabilities are recognized at a value that considerably deviates from the fair value. More detailed information is available in Note 19 of the 2015 Annual Report. In 2016, there were no significant changes in holdings or the valuation of financial instruments attributable to Level 3 of the fair-value hierarchy under IFRS 13 and there were no transfers between the levels in the valuation hierarchy. On March 31, 2016, the Group had no outstanding foreign exchange forward contracts.
Net sales amounted to SEK 0.0 M (0.1) in the first quarter of 2016. A loss before tax totaling SEK 8.9 M (loss: 5.4) was reported. Cash and cash equivalents totaled SEK 166.0 M on March 31, 2016 (80.3 on December 31, 2015). Investments in shares in subsidiaries amounted to SEK 32.3 M and transfers of shares in subsidiaries to other Group companies amounted to SEK 21.2 M. No significant investments were made in intangible or tangible fixed assets. The proposed dividend is anticipated to entail a payment of SEK 68.5 M in May 2016. During the second quarter of 2016, it is anticipated that payments of conditional purchase considerations will amount to approximately SEK 9 M. The Parent Company has an existing agreement for a credit facility amounting to SEK 100 M. The Parent Company also has an agreement covering a credit facility of up to SEK 200 M to finance future acquisitions, of which SEK 123 M had been drawn upon up until the date of publication of this interim report.
This interim report has been prepared in accordance with IAS 34 Interim Financial Reporting. The consolidated accounts have been prepared in compliance with the International Financial Reporting Standards, IFRS, as adopted by the EU, and with the Swedish Annual Accounts Act. The Parent Company's accounts have been prepared in accordance with the Annual Accounts Act and recommendation RFR 2 Accounting for Legal Entities. The new standards, amendments and interpretations of existing standards that gained legal force in 2016 had no impact on Addnode Group's financial position or financial reports. The accounting policies and calculation methods are unchanged compared with the description in the 2015 Annual Report.
Addnode Group's significant risks and uncertainties are described in the 2015 Annual Report on pages 10-11 and in the section "Risks and uncertainties" on page 36, as well as in notes 37 and 38 on pages 67-69. No significant changes have subsequently occurred.
The Board has not changed its assessment of the future outlook compared with the previous quarter. In the year-end report for 2015, the Board submitted the following future outlook: In the long-term, the areas in which the Addnode Group is active are deemed to have a strong underlying potential. The Addnode Group's growth strategy is for organic growth and to contribute new supplementary offerings and additional expertise through the acquisition of new operations. The policy of not issuing a forecast stands firm.
Stockholm, April 27, 2016
Board of Directors
This interim report has not been audited.
| Shareholders | Capital, % | Votes, % |
|---|---|---|
| Vidinova AB1) | 24.4 | 26.8 |
| Aretro Capital Group AB2) | 12.4 | 23.6 |
| Swedbank Robur Fonder | 9.6 | 7.3 |
| Lannebo Fonder | 8.0 | 6.1 |
| Handelsbanken Fonder AB | 5.2 | 3.9 |
| Försäkringsbolaget Avanza Pension | 3.5 | 2.7 |
| Didner & Gerge Fonder | 3.3 | 2.5 |
| Fjärde AP-fonden | 2.7 | 2.0 |
| Multiple Choice Företagsservice | 0.2 | 1.7 |
| E Öhman Jr Fonder AB | 2.0 | 1.5 |
| Other shareholders | 28.7 | 21.9 |
| Total | 100.0 | 100.0 |
1) Board member Dick Hasselström is the principal owner of Vidinova AB. 2) Aretro Capital Group AB is jointly owned by Staffan Hanstorp, Addnode Group's President and CEO, and Jonas Gejer, the Business Area Manager of Product Lifecycle Management.
Addnode Group acquires, operates and develops entrepreneur-driven companies that supply software and services to markets in which we have or can achieve a leading position. We are one of Europe's leading suppliers of software and services for design, construction and product data information, and a leading supplier of document and case management systems to public sector clients in Sweden and Norway. In 2015, we reported a growth rate of 19 percent and net sales totaled SEK 1,901 M.
TWO CORE
IT solutions for design, construction and product data information. IT solutions for documentand case management.
BUSINESSES ENTREPRENEURSHIP ACQUISITIONS
We are distinguished by a spirit of entrepreneurship, with short decision-making paths, and business-critical decision are made as close as possible to the customer and end user.
We have completed more than 40 acquisitions since 2003 and are constantly seeking companies than can strengthen or complement one of our two core businesses.
A large portion of our revenue is recurring in the form of support and maintenance agreements, as well as SaaS services.
| Jan - March | Full-year | ||
|---|---|---|---|
| (SEK M) | 2016 | 2015 | 2015 |
| Net sales | 540.8 | 431.8 | 1,900.8 |
| Operating costs: | |||
| Purchases of goods and services | -220.9 | -157.7 | -708.0 |
| Other external costs | -64.0 | -52.6 | -236.7 |
| Personnel costs | -233.6 | -194.5 | -817.6 |
| Capitalized work performed by the company for its own use | 11.8 | 9.6 | 43.2 |
| Depreciation and write-downs of | |||
| - tangible fixed assets | -3.5 | -2.9 | -13.7 |
| - intangible fixed assets | -12.4 | -9.3 | -42.0 |
| Total operating costs | -522.6 | -407.4 | -1,774.8 |
| Operating profit | 18.2 | 24.4 | 126.0 |
| Financial income | 0.8 | 2.0 | 2.5 |
| Financial expenses | -2.2 | -0.8 | -3.9 |
| Profit before taxes | 16.8 | 25.6 | 124.6 |
| Current tax | -2.9 | -3.2 | -18.8 |
| Deferred tax | -1.2 | -2.8 | -10.3 |
| NET PROFIT FOR THE PERIOD | 12.7 | 19.6 | 95.5 |
| Attributable to: | |||
| Shareholders of the Parent company | 12.7 | 19.6 | 95.5 |
| Minority share | 0.0 | 0.0 | 0.0 |
| Earnings per share before dilution, SEK | 0.42 | 0.66 | 3.18 |
| Earnings per share after dilution, SEK | 0.42 | 0.66 | 3.18 |
| Average number of outstanding shares: | |||
| Before dilution, millions | 30.4 | 29.6 | 30.0 |
| After dilution, millions | 30.4 | 29.6 | 30.0 |
| Jan - March | Full-year | |||
|---|---|---|---|---|
| (SEK M) | 2016 | 2015 | 2015 | |
| Net profit for the period | 12.7 | 19.6 | 95.5 | |
| Other comprehensive income, items which will not be | ||||
| reclassified to the consolidated income statement: | ||||
| Actuarial gains and losses regarding pension commitments | -0.2 | |||
| Other comprehensive income, items which may be | ||||
| reclassified to the consolidated income statement: | ||||
| Translation differences on consolidation | 8.1 | 2.3 | -27.9 | |
| Hedges of net investments in foreign subsidiaries | -0.6 | 0.8 | ||
| Total other comprehensive income after tax for the period | 7.5 | 2.3 | -27.3 | |
| COMPREHENSIVE INCOME FOR THE PERIOD | 20.2 | 21.9 | 68.2 | |
| Attributable to: | ||||
| Shareholders of the Parent company | 20.2 | 21.9 | 68.2 | |
| Minority share | 0.0 | 0.0 | 0.0 |
| March 31, | March 31, | Dec 31, | |
|---|---|---|---|
| (SEK M) | 2016 | 2015 | 2015 |
| Goodwill | 916.2 | 741.4 | 889.2 |
| Trademarks | 12.2 | 12.5 | 12.1 |
| Other intangible fixed assets | 170.0 | 125.0 | 159.9 |
| Tangible fixed assets | 35.4 | 29.0 | 34.6 |
| Financial fixed assets | 28.1 | 33.3 | 29.6 |
| Inventories | 1.6 | 1.2 | 1.2 |
| Current receivables | 562.3 | 474.7 | 661.6 |
| Cash and cash equivalents | 241.6 | 85.5 | 102.9 |
| TOTAL ASSETS | 1,967.4 | 1,502.6 | 1,891.1 |
| Shareholders' equity | 936.8 | 894.6 | 916.6 |
| Long-term liabilities | 104.1 | 48.5 | 102.2 |
| Current liabilities | 926.5 | 559.5 | 872.3 |
| TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES | 1,967.4 | 1,502.6 | 1,891.1 |
| Interest-bearing receivables amount to | 0.5 | 1.1 | 0.5 |
| Interest-bearing liabilities amount to | 149.0 | 31.0 | 126.6 |
| Pledged assets | 13.4 | 12.6 | 12.8 |
| Contingent liabilities | 1.3 | 2.3 | 1.8 |
| Q | Jan - March | |||||
|---|---|---|---|---|---|---|
| Specification of changes in shareholders' equity | 2016 | 2015 | 2015 | |||
| Shareholders' equity, opening balance | 916.6 | 872.7 | 872.7 | |||
| New share issue | 17.6 | |||||
| Issue expenses | -0.1 | |||||
| Dividend | -66.6 | |||||
| Transfer of own shares | 24.8 | |||||
| Comprehensive income for the period | 20.2 | 21.9 | 68.2 | |||
| Shareholders' equity, closing balance | 936.8 | 894.6 | 916.6 | |||
| Shareholders' equity attributable to: | ||||||
| Shareholders of the Parent company | 936.8 | 894.6 | 916.6 | |||
| Minority interest | 0.0 | 0.0 | 0.0 | |||
| Specification of number of shares outstandning, millions | ||||||
| Number of outstanding shares, opening balance | 30.4 | 29.6 | 29.6 | |||
| New share issue | 0.3 | |||||
| Transfer of own shares | 0.5 | |||||
| Number of outstanding shares, closing balance | 30.4 | 29.6 | 30.4 |
The number of registered shares was 30,427,256 on both December 31, 2015 and March 31, 2016. Addnode Group had no holdings of own shares on December 31, 2015 or March 31, 2016. The number of outstanding shares was 30,427,256 on both December 31, 2015 and March 31, 2016.
| Jan - March | Full-year | ||
|---|---|---|---|
| (SEK M) | 2016 | 2015 | 2015 |
| Current operations | |||
| Operating profit | 18.2 | 24.4 | 126.0 |
| Adjustment for items not included in cash flow | 17.5 | 9.6 | 56.8 |
| Total | 35.7 | 34.0 | 182.8 |
| Net financial items | -0.2 | -0.6 | -3.8 |
| Tax paid, etc. | -6.1 | -8.8 | -20.8 |
| Cash flow from current operations | |||
| before changes in working capital | 29.4 | 24.6 | 158.2 |
| Total changes in working capital | 120.8 | 15.9 | -14.4 |
| Cash flow from current operations | 150.2 | 40.5 | 143.8 |
| Cash flow from investing activities1) | -35.2 | -23.3 | -115.1 |
| Cash flow from financing activities2) | 23.4 | -5.2 | 6.7 |
| Change in cash and cash equivalents | 138.4 | 12.0 | 35.4 |
| Cash and cash equivalents, opening balance | 102.9 | 72.4 | 72.4 |
| Exchange-rate difference in cash and cash equivalents | 0.3 | 1.1 | -4.9 |
| Cash and cash equivalents, closing balance | 241.6 | 85.5 | 102.9 |
| 1) Specification of investing activities: | |||
| Acquisition and sales of intangible and tangible | |||
| fixed assets | -16.6 | -14.1 | -58.6 |
| Acquisition of financial fixed assets | -1.9 | -3.4 | |
| Acquisition of subsidiaries and operations | -28.3 | -7.6 | -80.3 |
| Cash and cash equivalents in acquired companies | 9.7 | 0.3 | 27.2 |
| Total | -35.2 | -23.3 | -115.1 |
| 2) Specification of financing activities: | |||
| Paid dividend | -66.6 | ||
| Borrowings | 29.5 | 94.0 | |
| Repayment of debts Total |
-6.1 23.4 |
-5.2 -5.2 |
-20.7 6.7 |
| Jan - March | Full-year | ||
|---|---|---|---|
| 2016 | 2015 | 2015 | |
| Net sales, SEK M | 540.8 | 431.8 | 1,900.8 |
| Average number of employees | 1,117 | 886 | 1,005 |
| Net sales per employee, SEK 000s | 484 | 487 | 1,891 |
| Change in net sales, % | 25 | 5 | 19 |
| EBITA margin, % | 5.7 | 7.8 | 8.8 |
| Operating margin, % | 3.4 | 5.7 | 6.6 |
| Profit margin, % | 3.1 | 5.9 | 6.6 |
| Equity/assets ratio, % | 48 | 60 | 48 |
| Acid-test ratio, % | 87 | 100 | 88 |
| Shareholders' equity, SEK M | 936.8 | 894.6 | 916.6 |
| Return on shareholders' equity,% * | 1.4 | 2.2 | 10.8 |
| Return on capital employed, % * | 1.8 | 2.9 | 13.5 |
| Net liabilities, SEK M | -93.1 | -55.6 | 23.2 |
| Debt/equity ratio, multiple | 0.21 | 0.08 | 0.19 |
| Interest coverage ratio, multiple | 23.2 | 78.0 | 49.9 |
| Percentage of risk-bearing capital, % | 48 | 60 | 49 |
| Investments in equipment, SEK M | 4.9 | 5.3 | 17.2 |
* Key figures for the various interim periods have not been adjusted to return on an annual basis.
| Jan - March | Full-year | ||
|---|---|---|---|
| 2016 | 2015 | 2015 | |
| Average number of outstanding shares after | |||
| dilution, millions | 30.4 | 29.6 | 30.0 |
| Total number of outstanding shares, millions | 30.4 | 29.6 | 30.4 |
| Total number of registered shares, millions | 30.4 | 30.1 | 30.4 |
| Earnings per share after dilution, SEK | 0.42 | 0.66 | 3.18 |
| Shareholders' equity per share, SEK | 30.79 | 30.21 | 30.12 |
| Dividend per share, SEK | - | - | 2.25 1) |
| Stock-market price at end of period, SEK | 54.50 | 51.00 | 61.25 |
| P/E ratio | - | - | 19 |
| Share price/shareholders' equity | 1.77 | 1.69 | 2.03 |
1) According to proposal from the board.
The figures below refer to the first quarter of each full-year.
| ELIM / | ADDNODE | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (SEK M) | DESIGN MGT | PLM MGT | PROCESS MGT CONTENT MGT | CENTRAL | OTHER | GROUP | ||||||||
| 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | |
| REVENUE | ||||||||||||||
| External sales | 224.8 | 227.3 | 176.4 | 59.2 | 109.9 | 111.0 | 29.5 | 34.1 | 0.2 | 0.2 | 540.8 | 431.8 | ||
| Transactions between | ||||||||||||||
| segments | 1.0 | 1.2 | 0.9 | 0.2 | 4.0 | 3.1 | 0.8 | 0.7 | -6.7 | -5.2 | 0.0 | 0.0 | ||
| Total revenue | 225.8 | 228.5 | 176.4 | 59.2 | 110.8 | 111.2 | 33.5 | 37.2 | 1.0 | 0.9 | -6.7 | -5.2 | 540.8 | 431.8 |
| EBITA | 14.8 | 17.0 | 8.8 | 5.6 | 14.4 | 15.5 | -0.4 | 2.5 | -7.0 | -6.9 | 30.6 | 33.7 | ||
| EBITA margin | 6.6% | 7.4% | 5.0% | 9.5% | 13.0% | 13.9% | -1.2% | 6.7% | 5.7% | 7.8% | ||||
| Operating profit | 9.7 | 12.4 | 6.1 | 4.7 | 10.1 | 11.9 | -0.7 | 2.3 | -7.0 | -6.9 | 18.2 | 24.4 | ||
| Operating margin | 4.3% | 5.4% | 3.5% | 7.9% | 9.1% | 10.7% | -2.1% | 6.2% | 3.4% | 5.7% | ||||
| Average number of employees | 314 | 317 | 406 | 160 | 274 | 277 | 116 | 124 | 7 | 8 | 1,117 | 886 |
Addnode Group's operations are organized and managed based on the business areas Design Management, Product Lifecycle Management (PLM), Process Management and Content Management, which are the Group's operating segments. There have been no changes in the segment division or calculation of segment results since the most recently published Annual Report. Segments are reported according to the same accounting principles as the Group. The difference between the sum of the segments' operating income and consolidated income before tax is attributable to financial income of SEK 0.8 M (2.0) and financial expenses of SEK -2.2 M (-0.8). There have been no significant changes in the segments' assets compared to the information in the most recent annual report.
| (SEK M) | 2016 | 2015 | 2014 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Q1 | Total | Q4 | Q3 | Q2 | Q1 | Total | Q4 | Q3 | Q2 | Q1 | |
| Net sales | 540.8 1,900.8 | 614.4 467.3 387.3 431.8 1,598.6 | 461.4 354.5 371.3 411.4 | ||||||||
| EBITA | 30.6 | 168.0 | 69.5 | 42.2 | 22.6 | 33.7 | 193.3 | 97.7 | 34.0 | 27.3 | 34.3 |
| Operating profit | 18.2 | 126.0 | 58.0 | 30.8 | 12.8 | 24.4 | 128.5 | 58.5 | 25.1 | 18.5 | 26.4 |
| Profit before taxes | 16.8 | 124.6 | 57.2 | 29.6 | 12.2 | 25.6 | 129.8 | 60.2 | 25.0 | 19.2 | 25.4 |
| Profit after taxes | 12.7 | 95.5 | 45.5 | 21.7 | 8.7 | 19.6 | 100.2 | 47.6 | 19.0 | 14.4 | 19.2 |
| EBITA margin | 5.7% | 8.8% 11.3% | 9.0% | 5.8% | 7.8% | 12.1% 21.2% | 9.6% | 7.4% | 8.3% | ||
| Operating margin | 3.4% | 6.6% | 9.4% | 6.6% | 3.3% | 5.7% | 8.0% 12.7% | 7.1% | 5.0% | 6.4% | |
| Cash flow from current operations | 150.2 | 143.8 | 98.0 | -18.0 | 23.3 | 40.5 | 152.5 | 96.7 | -29.9 | 13.9 | 71.8 |
| Average number of employees | 1,117 | 1,005 | 1,132 1,109 | 884 | 886 | 890 | 885 | 896 | 886 | 892 |
| (SEK M) | Jan - March | Full-year | |
|---|---|---|---|
| 2016 | 2015 | 2015 | |
| Net sales | 0.0 | 0.1 | 7.3 |
| Operating expenses | -8.1 | -7.2 | -25.7 |
| Operating result | -8.1 | -7.1 | -18.4 |
| Financial income | 0.4 | 2.4 | 105.8 |
| Financial expenses | -1.2 | -0.7 | -3.3 |
| Profit before taxes | -8.9 | -5.4 | 84.1 |
| Tax | 0.0 | 0.0 | -11.7 |
| NET PROFIT FOR THE PERIOD | -8.9 | -5.4 | 72.4 |
| (SEK M) | March 31, | March 31, 2015 |
Dec 31, 2015 |
|---|---|---|---|
| 2016 | |||
| Tangible fixed assets | 0.0 | 0.0 | 0.0 |
| Financial fixed assets | 1,154.2 | 1,013.8 | 1,143.1 |
| Current receivables | 71.0 | 103.5 | 102.4 |
| Cash and cash equivalents | 166.0 | 4.4 | 80.3 |
| TOTAL ASSETS | 1,391.2 | 1,121.7 | 1,325.8 |
| Shareholders' equity | 856.2 | 811.5 | 865.1 |
| Provisions | 46.7 | 1.6 | 46.7 |
| Long-term liabilities | 5.1 | 10.3 | 5.1 |
| Current liabilities | 483.2 | 298.3 | 408.9 |
| TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES | 1,391.2 | 1,121.7 | 1,325.8 |
Average number of full-time employees during the period.
Reported shareholders' equity plus untaxed reserves less deferred tax at current tax rate.
Total assets less non-interest-bearing liabilities and non-interest-bearing provisions including deferred tax liabilities.
Net sales divided by the average number of full-time employees.
Profit before depreciation/amortization and impairment of intangible assets.
EBITA margin EBITA as a %-age of net sales.
Operating margin Operating profit as a %-age of net sales.
Profit margin Profit before tax as a %-age of net sales.
Net profit for the period attributable to the parent company's shareholders' as a %-age of the average shareholders' equity.
Profit before tax plus financial expenses as a %-age of the average capital employed.
Shareholders' equity (including shareholder's equity related to non-controlling interest) as a %-age of total assets.
Current assets excluding inventory as a %-age of current liabilities.
Interest-bearing liabilities less cash and cash equivalents and other interest-bearing receivables.
A negative net liability, according to this definition, means that cash and cash equivalents and other interest-bearing financial assets exceed interest bearing liabilities.
Total amount of interest-bearing long-term and current liabilities and deferred tax liability in relation to shareholders' equity.
Profit before tax plus interest expenses as a % -age of interest expense.
Reported shareholders' equity (including shareholder's equity related to non-controlling interest) and deferred tax liability in untaxed reserves as a %-age of total assets.
Net profit for the period attributable to the parent company's shareholders' divided by the average number of shares outstanding.
Shareholders' equity attributable to the parent company's shareholders' divided by the number of shares outstanding.
Share price in relation to profit per share.
Share price in relation to shareholders' equity per share.
Outcome for the latest twelve-month period
– PART OF CAD-Q
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