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Addtech AB Interim / Quarterly Report 2021
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Interim / Quarterly Report
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ADDTECH
INTERIM REPORT 1 APRIL - 30 SEPTEMBER 2020
SECOND QUARTER (1 JULY - 30 SEPTEMBER 2020)
- Net sales decreased by 7 percent and amounted to SEK 2,723 million (2,917). Covid-19 is estimated to have affected net sales negatively by approximately 8 percent.
- Operating profit before amortisation of intangible non-current assets (EBITA) decreased by 19 percent and amounted to SEK 306 million (380) corresponding to an EBITA margin of 11.2 percent (13.0).
- Operating profit decreased by 26 percent and amounted to SEK 242 million (329) corresponding to an operating margin of 8.9 percent (11.2).
- Profit after tax decreased by 24 percent and amounted to SEK 181 million (240) and earnings per share before dilution amounted to SEK 0.65 (0.85).
- The number of shares in the company has been increased by splitting each existing share, regardless of series, into four shares (what is referred to as 4:1 share split).
PERIOD (1 APRIL - 30 SEPTEMBER 2020)
- Net sales decreased by 6 percent and amounted to SEK 5,528 million (5,851). Covid-19 is estimated to have affected net sales negatively by approximately 7 percent.
- Operating profit before amortisation of intangible non-current assets (EBITA) decreased by 15 percent and amounted to SEK 612 million (721) corresponding to an EBITA margin of 11.1 percent (12.3).
- Operating profit decreased by 22 percent and amounted to SEK 485 million (621) corresponding to an operating margin of 8.8 percent (10.6).
- Profit after tax decreased by 22 percent and amounted to SEK 365 million (466) and earnings per share before dilution amounted to SEK 1.30 (1.70). For the latest twelve month period earnings per share before dilution amounted to SEK 2.80 (2.90).
- Return on working capital (P/WC) amounted to 51 percent (56).
- Return on equity amounted to 26 percent (33) and the equity ratio amounted to 32 percent (32).
- Cash flow from operating activities amounted to SEK 567 million (519). For the latest twelve month period, cash flow per share from operating activities amounted to SEK 4.35 (3.10).
- Since the start of the financial year nine acquisitions have been completed, of which two after the end of the period, with total annual sales of about SEK 775 million.
| GROUP SUMMARY | 3 months | 6 months | Rolling 12 months | |||||
|---|---|---|---|---|---|---|---|---|
| SEKm | 30 Sep 2020 | 30 Sep 2019 | Δ | 30 Sep 2020 | 30 Sep 2019 | Δ | 30 Sep 2020 | 31 Mar 2020 |
| Net sales | 2,723 | 2,917 | -7% | 5,528 | 5,851 | -6% | 11,412 | 11,735 |
| EBITA | 306 | 380 | -19% | 612 | 721 | -15% | 1,255 | 1,364 |
| EBITA-margin % | 11.2 | 13.0 | 11.1 | 12.3 | 11.0 | 11.6 | ||
| Profit after financial items | 227 | 307 | -26% | 460 | 593 | -22% | 972 | 1,105 |
| Profit for the period | 181 | 240 | -24% | 365 | 466 | -22% | 772 | 873 |
| Earnings per share before dilution, SEK | 0.65 | 0.85 | -24% | 1.30 | 1.70 | -24% | 2.80 | 3.20 |
| Earnings per share after dilution, SEK | 0.65 | 0.85 | -24% | 1.30 | 1.70 | -24% | 2.80 | 3.20 |
| Cash flow from operating activities per share, SEK | - | - | - | - | 4.35 | 4.15 | ||
| Return on equity, % | 26 | 33 | 26 | 33 | 26 | 32 | ||
| Equity ratio, % | 32 | 32 | 32 | 32 | 32 | 36 |
All calculations of key figures for SEK per share has been restated to take the share split (4:1) completed in September 2020 into account.
Comparisons in parentheses refer to the corresponding period of the previous year, unless stated otherwise.
ADDTECH AB (PUBL.) INTERIM REPORT 1 APRIL - 30 SEPTEMBER 2020
CEO'S COMMENTS
SECOND QUARTER – FOCUSING ON EFFICIENCY AND FINISHING STRONGLY
The second quarter outcome was somewhat better than we had feared, mainly attributable to the month of September being very strong. Sales fell by 7 percent, of which the organic decline was 10 percent compared with the corresponding period last year. Although Covid-19 affected several to us important market segments during the quarter, a significant part of the organic effect is related to the sale of solutions for scrubber installations. Sales within this area have decreased gradually since the fourth quarter of the previous financial year and have further strongly negatively been impacted by the Covid-19 pandemic. Our focused efforts to adjust our operating costs to lower business volumes in our companies within the affected market segments resulted in about 200 employees unfortunately being laid off during the first six months. These measures, combined with the effects of short-term cost reductions and favourable contributions from acquisitions, resulted in an EBITA margin of 11.2 percent, which was good given the tough comparison with a very strong quarter last year. Our liquidity remains favourable and the cash flow is stable.
The business situation varied between different geographical markets, customer segments and product niches. Sales of production components for the mechanical industry and special vehicles were weak and, although we experienced a recovery in demand at the end of the quarter, we are seeing caution among customers, resulting in weaker visibility than usual. The increased demand in medical technology that we experienced at the beginning of the pandemic abated over the quarter. The market situation was strong in the forest industry, wind power and infrastructure products for national and regional grids, and sales in the electronics and defence segments were stable.
In terms of our geographical presence, our recovery was strongest in the second quarter in Denmark and in other European countries outside the Nordic region, although the latter progressed from very low levels. The business situation developed stably in Sweden, while the trend in Finland and Norway was strongly negative, attributable largely to the decrease in scrubber business. The underlying sentiment is that the market situation in Finland was stable and in Norway it remained stagnant.
ACQUISITIONS
Acquisitions of successful and market-leading companies are an important element in our growth strategy and our ambition is to implement well-considered acquisitions, even during periods of greater difficulty. During the quarter, we completed four acquisitions and we completed two more in early October. Since the beginning of the financial year, we have acquired nine companies, whose combined annual sales are approximately SEK 775 million. We continue to have several projects in progress, at various phases and in different geographical markets.
OUTLOOK - CONTINUED ADAPTATION TO THE NEW NORMAL
The stabilising trend in demand that we experienced in September has continued into October but the pandemic's impact on demand trends will remain uncertain. Over the upcoming period, we also expect low activity levels to persist in the market for scrubber installations. We are monitoring developments closely and are continuing to implement our cost-adjustment programme while focusing on safeguarding our long-term profitable growth.
Our increased focus on sustainability, which we initiated during the preceding financial year, is continuing unabated. Our experiences from the cyber attack have been of great help in the transition towards increased digitalisation, which has been accelerated by the pandemic.
Overall, I have great confidence in our growth strategies, scalable business model and strong, entrepreneurial corporate culture. I would again like to take this opportunity to thank all Addtech employees for your amazing commitment and efforts.
Niklas Stenberg
President and CEO
ADDTECH AB (PUBL.) INTERIM REPORT 1 APRIL - 30 SEPTEMBER 2020
GROUP DEVELOPMENT
Sales development
Net sales in the Addtech Group decreased in the second quarter by 7 percent to SEK 2,723 million (2,917). The organic effect amounted to -10 percent, acquired growth amounted to 6 percent. Exchange rate changes had a negative effect of 3 percent on net sales, corresponding to SEK 80 million.
Net sales in the Addtech Group decreased during the period by 6 percent to SEK 5,528 million (5,851). The organic effect amounted to -9 percent, acquired growth amounted to 5 percent. Exchange rate changes had a negative effect of 2 percent on net sales, corresponding to SEK 126 million.
Profit development
Operating profit decreased during the quarter by 26 percent to SEK 242 million (329) and the operating margin amounted to 8.9 percent (11.2). Net financial items amounted to SEK -15 million (-22) and profit after financial items decreased by 26 percent to SEK 227 million (307).
Profit after tax decreased by 24 percent to SEK 181 million (240) corresponding to earnings per share before dilution of SEK 0.65 (0.85).
EBITA for the period amounted to SEK 612 million (721), representing a decrease of 15 percent. Operating profit decreased during the period by 22 percent to SEK 485 million (621) and the operating margin amounted to 8.8 percent (10.6). Net financial items were SEK -25 million (-28) and profit after financial items decreased by 22 percent to SEK 460 million (593).
Profit after tax for the period decreased by 22 percent to SEK 365 million (466) and the effective tax rate amounted to 21 percent (21). Earnings per share before dilution for the period amounted to SEK 1.30 (1.70). For the latest twelve month period, earnings per share before dilution amounted to SEK 2.80 (2.90).
ADDTECH AB (PUBL.) INTERIM REPORT 1 APRIL - 30 SEPTEMBER 2020
DEVELOPMENT IN THE BUSINESS AREAS
AUTOMATION
Net sales in Automation increased in the second quarter by 2 percent to SEK 562 million (552) and EBITA increased by 7 percent to SEK 60 million (57). Net sales during the period increased marginally to SEK 1,145 million (1,143) and EBITA decreased by 6 percent to SEK 110 million (117).
Market
Overall, the Automation business area was affected marginally negatively by COVID-19. The business situation was favourable in medical technology, the defence industry, as well as in data and telecom. The level of activity remained low among the companies exposed to the Nordic engineering industry, particularly larger OEM customers that have put new investments on hold, although some recovery was noted in September. The business situation among the companies operating in the markets outside the Nordic region remained affected by shutdowns and restrictions.
COMPONENTS
Net sales in Components decreased in the second quarter by 5 percent to SEK 487 million (511) and EBITA decreased by 15 percent to SEK 50 million (58). Net sales during the period decreased by 3 percent to SEK 983 million (1,015) and EBITA decreased by 11 percent to SEK 100 million (112).
Market
On the whole, the Components business area was affected moderately negatively by COVID-19. The business situation in Denmark was stable, while operations in Norway were negatively affected by both currency effects and low oil prices, with a resulting low rate of investment in the oil and gas market segment. The market situation in Finland and Sweden was negative, impacted primarily by the automotive and engineering industries, although there was some recovery late in the quarter.
ENERGY
Net sales in Energy increased in the second quarter by 7 percent to SEK 633 million (593) and EBITA increased by 5 percent to SEK 79 million (75). Net sales during the period increased by 9 percent to SEK 1,316 million (1,212) and EBITA increased by 12 percent to SEK 160 million (142).
Market
The business situation in the Energy business area remained highly favourable in the second quarter, affected only marginally negatively by COVID-19. Sales of infrastructure products for upgrading and building out national and regional grids and for wind power, maintained at high levels and the market situation remained stable throughout the quarter. The units that are active in sales of niche products for electrical power distribution and for building and installation continued to experience declining demand due to the pandemic.
INDUSTRIAL PROCESS
Net sales in Industrial Process decreased in the second quarter by 21 percent to SEK 680 million (865) and EBITA decreased by 42 percent to SEK 77 million (134). Net sales during the period decreased by 19 percent to SEK 1,349 million (1,672) and EBITA decreased by 37 percent to SEK 150 million (237).
Market
The Industrial Process business area was affected very negatively by the effects of COVID-19. The demand for solutions for scrubber installations remained low due to low oil prices and the prevailing pandemic, and this sales decreased by approximately 75 percent compared with the corresponding period last year. The market situation for the companies in special vehicles and the engineering industry continued to be perceived as weak in the second quarter, although there was some recovery late in the quarter. Demand was high for projects in the forest industry.
POWER SOLUTIONS
Net sales in Power Solutions decreased in the second quarter by 9 percent to SEK 365 million (402) and EBITA decreased by 25 percent to SEK 46 million (62). Net sales during the period decreased by 9 percent to SEK 746 million (819) and EBITA decreased by 24 percent to SEK 96 million (127).
Market
The Power Solutions business area was affected very negatively by the effects of COVID-19. The declining market for special vehicles continued to be what affected the business area the most as a whole, with sales decreasing by approximately 30 percent due to the prevailing situation although a clear recovery was noted in September. The market situation was stable for customized battery solutions and for the companies operating in power supply. The business situation in wind power and in data and telecom remained favourable over the quarter.
ADDTECH AB (PUBL.) INTERIM REPORT 1 APRIL - 30 SEPTEMBER 2020
OTHER FINANCIAL INFORMATION
Profitability, financial position and cash flow
The return on equity at the end of the period was 26 percent (33), and return on capital employed was 17 percent (22). Return on working capital P/WC (EBITA in relation to working capital) amounted to 51 percent (56).
At the end of the period the equity ratio amounted to 32 percent (32). Equity per share, excluding non-controlling interest, totalled SEK 10.40 (9.60). The Group's net debt at the end of the period amounted to SEK 3,148 million (2,543), excluding pension liabilities of SEK 359 million (374). The net debt/equity ratio, calculated on the basis of net debt excluding provisions for pensions amounted to 1.0 (1.0).
Cash and cash equivalents consisting of cash and bank equivalents and approved but non-utilised credit facilities amounted to SEK 1,676 million (773) at 30 September 2020.
Cash flow from operating activities amounted to SEK 567 million (519) during the period. Company acquisitions and disposals including settlement of contingent consideration regarding acquisitions implemented in previous years amounted to SEK 888 million (295). Investments in non-current assets totalled SEK 33 million (61) and disposal of non-current assets amounted to SEK 4 million (3). Repurchase of treasury shares amounted to SEK 0 million (42). Repurchase of call options amounted to SEK 22 million (23) and issued call options amounted to SEK 17 million (23). During the second quarter, dividend of SEK 1.00 (1.25) per share was paid, totalling SEK 269 million (336).
Employees
At the end of the period, the number of employees was 3,090 compared to 2,981 at the beginning of the financial year. During the period, completed acquisitions resulted in a increase of the number of employees by 187. The average number of employees in the latest 12-month period was 2,990.
Ownership structure
At the end of the period the share capital amounted to SEK 51.1 million.
| Class of shares | Number of shares | Number of votes | Percentage of capital | Percentage of votes |
|---|---|---|---|---|
| Class A shares, 10 votes per share | 12,885,744 | 128,857,440 | 4.7% | 33.1% |
| Class B shares, 1 vote per share | 259,908,240 | 259,908,240 | 95.3% | 66.9% |
| Total number of shares before repurchases | 272,793,984 | 388,765,680 | 100.0% | 100.0% |
| Repurchased class B shares | -3,771,672 | 1.4% | 1.0% | |
| Total number of shares after repurchases | 269,022,312 |
At the annual general meeting on August 28, 2020, it was resolved on splitting each share into four shares (what is referred to as 4:1 share split). After the split the total number of shares amounts to 272,793,984 of which 12,885,744 Class A shares and 259,908,240 Class B shares. The new shares were registered on the shareholder's accounts on September 17, 2020.
In accordance with a resolution of the August 2020 AGM, 25 members of management were offered the opportunity to acquire 250,000 call options on repurchased Class B shares. The programme was fully subscribed. Addtech has four outstanding call option programmes for a total of 3,842,400 shares. Call options issued on repurchased shares entail a dilution effect of about 0.2 percent during the latest 12-month period. During the quarter, no treasury shares were repurchased. Addtech's own shareholding is estimated to meet the needs of the outstanding call option programmes.
| Outstanding programme | Number of options | Corresponding number of shares | Proportion of total shares | Exercise price per option | Exercise price per share | Expiration period |
|---|---|---|---|---|---|---|
| 2020/2024 | 250,000 | 1,000,000 | 0.4% | 538.10 | 134.53 | 4 Sep 2023 - 5 Jun 2024 |
| 2019/2023 | 300,000 | 1,200,000 | 0.4% | 321.80 | 80.45 | 5 Sep 2022 - 2 Jun 2023 |
| 2018/2022 | 300,000 | 1,200,000 | 0.4% | 232.90 | 58.23 | 6 Sep 2021 - 3 Jun 2022 |
| 2017/2021 | 110,600 | 442,400 | 0.2% | 178.50 | 44.62 | 14 Sep 2020 - 4 Jun 2021 |
| Total | 960,600 | 3,842,400 |
ADDTECH AB (PUBL.) INTERIM REPORT 1 APRIL - 30 SEPTEMBER 2020
Acquisitions and disposals
During the period, 1 April to 30 June 2020 the following acquisitions were completed; Elkome Group Oy, Finland, was acquired to become part of the Automation business area. Peter Andersson AB, Sweden, was acquired to become part of the Energy business area. Valutec Group AB, Sweden, was acquired to become part of the Industrial Process business area.
During the second quarter, four acquisitions took place.
On 1 September Fluidcontrol Oy, Finland, was acquired to become part of the Components business area. Fluidcontrol develops, delivers and installs solutions of actuators and valves for applications primarily towards machine builders and the process industry. The company has a sales of about EUR 4 million and 20 employees.
On 1 September Kaptas Oy, Finland, was acquired to become part of the Automation business area. Kaptas develops and delivers automation systems primarily to customers in pharmaceutical industry, metal, plastic, electronics and food industry. The company has a sales of about EUR 4 million and 27 employees.
On 1 September Elsystem i Perstorp AB, Sweden, acquired to become part of the Automation business area. Elsystem delivers automation solutions primarily for industrial production, automated warehouses, process industry and heating plants. The company has a sales of about SEK 40 million and 18 employees.
On 7 September Martin Bruusgaard AS, Norway, acquired to become part of the Industrial Process business area. Bruusgaard delivers a unique turnkey portable gas detection solution, providing its customers in the marine industry increased safety and reduced cost and transportation through standardised instruments, routines, training and procurement. The company has a sales of about NOK 110 million and 30 employees.
The purchase price allocation calculations for the acquisitions completed during the period 1 April – 30 September 2019 have now been finalised. No significant adjustments have been made to the calculations. Acquisitions completed as of the 2019/2020 financial year are distributed among the Group's business areas as follows:
| Acquisitions (disposals) | Closing | Net sales, SEKm* | Number of employees* | Business Area |
|---|---|---|---|---|
| Omni Ray AG, Switzerland | April, 2019 | 330 | 65 | Automation |
| Thume Teknik AB, Sweden | April, 2019 | 100 | 19 | Industrial Process |
| AB N.O. Rönne, Sweden | April, 2019 | 8 | 4 | Industrial Process |
| Best Seating Systems Walter Tausch GmbH, Austria | May, 2019 | 23 | 5 | Power Solutions |
| Thiim A/S, Denmark | June, 2019 | 70 | 15 | Automation |
| Profelec Oy, Finland | July, 2019 | 6 | 2 | Energy |
| BKC Products Ltd., Great Britain | August, 2019 | 12 | 5 | Industrial Process |
| Promector Oy, Finland | August, 2019 | 24 | 20 | Automation |
| Wireco-NB Oy, Finland | February, 2020 | 23 | 6 | Energy |
| Caligo Industria Oy, Finland | February, 2020 | 70 | 9 | Industrial Process |
| DMC Digital Motor Control GmbH, Germany | March, 2020 | 30 | 10 | Power Solutions |
| Q-tronic B.V, Netherlands | March, 2020 | 45 | 10 | Power Solutions |
| Elkome Group Oy, Finland | April, 2020 | 85 | 38 | Automation |
| Peter Andersson AB, Sweden | April, 2020 | 30 | 9 | Energy |
| Valutec Group AB, Sweden | April, 2020 | 350 | 45 | Industrial Process |
| Fluidcontrol Oy, Finland | September, 2020 | 41 | 20 | Components |
| Kaptas Oy, Finland | September, 2020 | 41 | 27 | Automation |
| Elsystem i Perstorp AB, Sweden | September, 2020 | 40 | 18 | Automation |
| Martin Bruusgaard AS, Norway | September, 2020 | 108 | 30 | Industrial Process |
| Satco Komponent AB, Sweden | October, 2020 | 18 | 2 | Components |
| Skyltar & Märken Gruppen AB, Sweden | October, 2020 | 60 | 23 | Energy |
- Refers to assessed condition at the time of acquisition and disposal, respectively, on a full-year basis.
If all acquisitions which have taken effect during the period had been completed on 1 April 2020, their impact would have been an estimated SEK 320 million on Group net sales, about SEK 20 million on operating profit and about SEK 10 million on profit after tax for the period.
ADDTECH AB (PUBL.) INTERIM REPORT 1 APRIL - 30 SEPTEMBER 2020
Addtech normally employs an acquisition structure comprising basic purchase consideration and contingent consideration. The outcome of contingent purchase considerations is determined by the future earnings reached by the companies and is subject to a fixed maximum level. Of considerations not yet paid for acquisitions during the period, the discounted value amounts to SEK 127 million. The contingent purchase considerations fall due for payment within three years and the outcome is subject to a maximum of SEK 202 million.
Transaction costs for acquisitions that resulted in an ownership transfer during the period, amounted to SEK 5 million (3) and are reported under Selling expenses.
Revaluation of contingent consideration had a positive net effect of SEK 7 million (16) during the period. The impact on profits are reported under Other operating income and Other operating expenses, respectively.
According to the preliminary acquisitions analyses, the assets and liabilities included in the acquisitions were as follows, during the period:
| Carrying amount at acquisition date | Adjustment to fair value | Fair value | |
|---|---|---|---|
| Intangible non-current assets | 24 | 613 | 637 |
| Other non-current assets | 30 | - | 30 |
| Inventories | 88 | - | 88 |
| Other current assets | 229 | - | 229 |
| Deferred tax liability/tax asset | -3 | -131 | -134 |
| Other liabilities | -154 | - | -154 |
| Acquired net assets | 214 | 482 | 696 |
| Goodwill 1) | 607 | ||
| Non-controlling interests | -163 | ||
| Consideration 2) | 1,140 | ||
| Less: cash and cash equivalents in acquired businesses | -146 | ||
| Less: consideration not yet paid | -140 | ||
| Effect on the Group's cash and cash equivalents | 854 |
1) Goodwill is justified by expected future sales trend and profitability as well as the personnel included in the acquired companies.
2) The consideration is stated excluding acquisition expenses.
With the acquisition of Valutec Group AB comes a commitment to acquire the remaining 14 percent of the company and this commitment is valued to SEK 98 million. With the acquisition of Martin Bruusgaard AS comes a commitment to acquire the remaining 20 percent of the company and this commitment is valued to SEK 24 million. These commitments are reported as a non-current interest-bearing liability.
Parent Company
Parent Company net sales amounted to SEK 36 million (30) and profit after financial items was SEK -1 million (-15). Net investments in non-current assets were SEK 0 million (0). The Parent Company's financial net debt was SEK 654 million (310) at the end of the period.
ADDTECH AB (PUBL.) INTERIM REPORT 1 APRIL - 30 SEPTEMBER 2020
OTHER DISCLOSURES
Accounting policies
The interim report has been prepared in accordance with IFRS as adopted by the EU, with IAS 34 Interim Financial Reporting being applied. Apart from in the financial statements and their accompanying notes, disclosures in accordance with IAS 34.16A also appear in other parts of the interim report. The interim report for the Parent Company has been prepared in accordance with the Annual Accounts Act and the Securities Market Act, which is in accordance with the provisions of RFR 2 Accounting for Legal Entities.
In the interim report, the same accounting principles and bases of calculation have been applied as in the most recent annual report, with the exception of the amended accounting principles described below.
New and amended standards for the 2020/2021 financial year
Other new or amended IFRS are not expected to have any significant effects on the Addtech Group.
Governmental support measures
Those governmental support measures that have been received or will be received as an effect of the Covid-19 pandemic will be recognized in the income statement when it is reasonably certain that the conditions for receiving the support have been met or will be met.
Alternative performance measures
The Company presents certain financial measures in the interim report that are not defined according to IFRS. The Company believes that these measures provide valuable supplemental information to investors and the Company's management as they allow for evaluation of trends and the Company's performance. Since all companies do not calculate financial measures in the same way, they are not always comparable to measures used by other companies. These financial measures should therefore not be considered to be a replacement for measurements as defined under IFRS. For definitions and reconciliation tables of the performance measures that Addtech uses, please see page 17-20.
Risks and factors of uncertainty
Addtech's profit and financial position, as well as its strategic position, are affected by a number of internal factors under Addtech's control and by a number of external factors over which Addtech has limited influence. The most important risk factors for Addtech are the state of the economy, combined with structural change and the competitive situation.
The Covid-19 pandemic that erupted during the beginning of 2020 affects the entire world market and will also affect Addtech. Addtech continues to follow the recommendations of the relevant authorities and takes relevant health precautions to protect staff and reduce the spread of infection in society. There are challenges in the supply chain and uncertainties exist about our customers' ability to keep their businesses running at full capacity. We prepare and take measures on an ongoing basis to be able to act quickly and meet a decrease in sales. All companies in the Group have prepared action plans and cost-cutting programs ready to be executed to protect earnings, liquidity and cash flow.
Addtech has four operating subsidiaries within the UK as well as a few other subsidiaries doing business with the UK. The effects of Brexit are to this date unknown, but all affected subsidiaries are closely monitoring the developments. Addtech Group's total exposure to possible negative effects from Brexit are not considered material. Beside this, risks and uncertainty factors are the same as in previous periods, please see section Risks and uncertainties (page 41-43) in the annual report for 2019/2020 for further details.
The Parent Company is indirectly affected by the above risks and uncertainty factors due to its role in the organisation.
Effects of the covid-19 pandemic
After the outbreak of the Covid-19 pandemic the Swedish government has decided on a number of government support measures. The same has also been decided in other countries where the Addtech group operates. Addtech has analyzed the conditions for these support measures and has applied where the criterias are judged to be met.
At the end of the second quarter, approximately 200 of the Group's total approximately 3,000 employees have been notified of redundancy and a further 260 employees are affected by short-term lay-offs. For the group in total EBITA is affected positively by approximately SEK 35 million from governmental support measures.
Sales in the second quarter of 2020/2021 are estimated to have been negatively affected by approximately 8 percent compared to sales in the previous year due to the current pandemic. No significant write-downs have been done due to the current pandemic.
ADDTECH AB (PUBL.) INTERIM REPORT 1 APRIL - 30 SEPTEMBER 2020
ADDTECH AB (PUBL.) INTERIM REPORT 1 APRIL - 30 SEPTEMBER 2020
Transactions with related parties
No transactions between Addtech and related parties that have significantly affected the Group's position and earnings have taken place during the period.
Seasonal effects
Addtech's sales of high-tech products and solutions in the manufacturing industry and infrastructure are not subject to major seasonal variations. The number of production days and customers' demand and willingness to invest can vary over the quarters.
Events after the end of the period
On 1 October Satco Komponent AB, Sweden, was acquired to become part of the Components business area. Satco Komponent sells high-tech electronic components such as electro mechanical, RF and cooling components. Satco Komponent has two employees and annual sales of around SEK 18 million.
On 2 October, Skyltar & Märken Gruppen AB, Sweden, was acquired to become part of the Energy business area. Skyltar & Märken is a market leader in its niche providing innovative and customized signs and traffic safety solutions for the Swedish market. Skyltar & Märken has a broad knowledge and experience in the entire value chain from design and construction, to production and assembly of signs and displays as well as extensive, niche traffic safety projects. The Group has 23 employees and annual sales of around SEK 60 million.
Affirmation
The Board of Directors and the President deem that the interim report on the first six months gives a true and fair picture of the Company's and the Group's operations, position and earnings, and describes the significant risks and uncertainty factors to which the Company and the Group are exposed.
Stockholm October 23, 2020
| Johan Sjö
Chairman of the Board | Eva Elmstedt
Director | Kenth Eriksson
Director |
| --- | --- | --- |
| Henrik Hedelius
Director | Ulf Mattsson
Director | Malin Nordesjö
Director |
| Niklas Stenberg
Director and President | | |
This report has not been subject to review by the company's auditor.
FURTHER INFORMATION
Publication
This information is information that Addtech AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact persons set out below, at 8.15 a.m CET on 23 October 2020.
Future information
2021-02-04 Interim report 1 April - 31 December 2020
2021-05-18 Year-end report 1 April 2020 - 31 March 2021
2021-07-16 Interim report 1 April - 30 June 2021
For further information, please contact:
Niklas Stenberg, President and CEO, +46 8 470 49 00
Malin Enarson, CFO, +46 705 979 473
BUSINESS AREA
| Net sales by business area | 2020/2021 | 2019/2020 | ||||
|---|---|---|---|---|---|---|
| Quarterly data, SEKm | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 |
| Automation | 562 | 583 | 694 | 588 | 552 | 591 |
| Components | 487 | 496 | 578 | 489 | 511 | 504 |
| Energy | 633 | 683 | 604 | 596 | 593 | 619 |
| Industrial Process | 680 | 669 | 732 | 800 | 865 | 807 |
| Power Solutions | 365 | 381 | 434 | 377 | 402 | 417 |
| Group items | -4 | -7 | -4 | -4 | -6 | -4 |
| Addtech Group | 2,723 | 2,805 | 3,038 | 2,846 | 2,917 | 2,934 |
| EBITA by business area | 2020/2021 | 2019/2020 | ||||
| --- | --- | --- | --- | --- | --- | --- |
| Quarterly data, SEKm | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 |
| Automation | 60 | 50 | 99 | 51 | 57 | 60 |
| Components | 50 | 50 | 65 | 41 | 58 | 54 |
| Energy | 79 | 81 | 78 | 62 | 75 | 67 |
| Industrial Process | 77 | 73 | 113 | 95 | 134 | 103 |
| Power Solutions | 46 | 50 | 68 | 36 | 62 | 65 |
| Group items | -6 | 2 | -16 | -49 | -6 | -8 |
| EBITA | 306 | 306 | 407 | 236 | 380 | 341 |
| Depr. of intangible non-current assets | -64 | -63 | -55 | -48 | -51 | -49 |
| - of which acquisitions | -61 | -60 | -49 | -47 | -49 | -47 |
| Operating profit | 242 | 243 | 352 | 188 | 329 | 292 |
| Net sales | 3 months | 6 months | Rolling 12 months | |||
| --- | --- | --- | --- | --- | --- | --- |
| 30 Sep | 30 Sep | 30 Sep | 30 Sep | 30 Sep | 31 Mar | |
| SEKm | 2020 | 2019 | 2020 | 2019 | 2020 | 2020 |
| Automation | 562 | 552 | 1,145 | 1,143 | 2,427 | 2,425 |
| Components | 487 | 511 | 983 | 1,015 | 2,050 | 2,082 |
| Energy | 633 | 593 | 1,316 | 1,212 | 2,516 | 2,412 |
| Industrial Process | 680 | 865 | 1,349 | 1,672 | 2,881 | 3,204 |
| Power Solutions | 365 | 402 | 746 | 819 | 1,557 | 1,630 |
| Group items | -4 | -6 | -11 | -10 | -19 | -18 |
| Addtech Group | 2,723 | 2,917 | 5,528 | 5,851 | 11,412 | 11,735 |
| EBITA and EBITA-margin | 3 months | 6 months | ||||
| --- | --- | --- | --- | --- | --- | --- |
| 30 Sep 2020 | 30 Sep 2019 | 30 Sep 2020 | ||||
| SEKm | % | SEKm | % | SEKm | % | |
| Automation | 60 | 10.8 | 57 | 10.3 | 110 | 9.6 |
| Components | 50 | 10.2 | 58 | 11.4 | 100 | 10.2 |
| Energy | 79 | 12.4 | 75 | 12.6 | 160 | 12.1 |
| Industrial Process | 77 | 11.4 | 134 | 15.4 | 150 | 11.1 |
| Power Solutions | 46 | 12.6 | 62 | 15.3 | 96 | 12.9 |
| Group items | -6 | -6 | -4 | |||
| EBITA | 306 | 11.2 | 380 | 13.0 | 612 | 11.1 |
| Depr. of intangible non-current assets | -64 | -51 | -127 | |||
| - of which acquisitions | -61 | -49 | -121 | |||
| Operating profit | 242 | 8.9 | 329 | 11.2 | 485 | 8.8 |
ADDTECH AB (PUBL.) INTERIM REPORT 1 APRIL - 30 SEPTEMBER 2020
DISAGGREGATION OF REVENUE
| Net sales by the subsidiaries geographical location | 3 months 30 Sep 2020 | ||||||
|---|---|---|---|---|---|---|---|
| SEKm | Automation | Components | Energy | Industrial Process | Power Solutions | Group items | Addtech Group |
| Sweden | 148 | 181 | 228 | 223 | 218 | -2 | 996 |
| Denmark | 147 | 136 | 138 | 102 | 22 | -1 | 544 |
| Finland | 94 | 110 | 48 | 147 | 38 | -1 | 436 |
| Norway | 55 | 50 | 133 | 119 | 20 | - | 377 |
| Europe | 111 | 4 | 74 | 55 | 49 | 0 | 293 |
| Other countries | 7 | 6 | 12 | 34 | 18 | 0 | 77 |
| Total | 562 | 487 | 633 | 680 | 365 | -4 | 2,723 |
| Net sales by the subsidiaries geographical location | 6 months | ||||||
| --- | --- | --- | --- | --- | --- | --- | --- |
| 30 Sep 2020 | |||||||
| SEKm | Automation | Components | Energy | Industrial Process | Power Solutions | Group items | Addtech Group |
| Sweden | 306 | 382 | 465 | 455 | 456 | -6 | 2,058 |
| Denmark | 288 | 266 | 285 | 221 | 45 | -4 | 1,101 |
| Finland | 187 | 216 | 111 | 287 | 67 | -1 | 867 |
| Norway | 118 | 98 | 302 | 219 | 46 | 0 | 783 |
| Europe | 232 | 9 | 130 | 99 | 99 | 0 | 569 |
| Other countries | 14 | 12 | 23 | 68 | 33 | 0 | 150 |
| Total | 1,145 | 983 | 1,316 | 1,349 | 746 | -11 | 5,528 |
| Net sales by the subsidiaries geographical location | 3 months | ||||||
| --- | --- | --- | --- | --- | --- | --- | --- |
| 30 Sep 2019 | |||||||
| SEKm | Automation | Components | Energy | Industrial Process | Power Solutions | Group items | Addtech Group |
| Sweden | 148 | 194 | 205 | 196 | 242 | -2 | 983 |
| Denmark | 142 | 133 | 139 | 146 | 25 | -2 | 583 |
| Finland | 64 | 126 | 46 | 186 | 30 | -1 | 451 |
| Norway | 61 | 56 | 133 | 199 | 25 | -1 | 473 |
| Europe | 135 | 2 | 70 | 67 | 55 | 0 | 329 |
| Other countries | 2 | 0 | 0 | 71 | 25 | 0 | 98 |
| Total | 552 | 511 | 593 | 865 | 402 | -6 | 2,917 |
| Net sales by the subsidiaries geographical location | 6 months | ||||||
| --- | --- | --- | --- | --- | --- | --- | --- |
| 30 Sep 2019 | |||||||
| SEKm | Automation | Components | Energy | Industrial Process | Power Solutions | Group items | Addtech Group |
| Sweden | 320 | 410 | 398 | 407 | 507 | -3 | 2,039 |
| Denmark | 269 | 272 | 284 | 313 | 48 | -5 | 1,181 |
| Finland | 164 | 222 | 94 | 332 | 58 | -1 | 869 |
| Norway | 118 | 107 | 293 | 364 | 52 | -1 | 933 |
| Europe | 268 | 4 | 142 | 129 | 104 | - | 647 |
| Other countries | 4 | 0 | 1 | 127 | 50 | 0 | 182 |
| Total | 1,143 | 1,015 | 1,212 | 1,672 | 819 | -10 | 5,851 |
ADDTECH AB (PUBL.) INTERIM REPORT 1 APRIL - 30 SEPTEMBER 2020
CONSOLIDATED INCOME STATEMENT, CONDENSED
| SEKm | 3 months | 6 months | Rolling 12 months | |||
|---|---|---|---|---|---|---|
| 30 Sep 2020 | 30 Sep 2019 | 30 Sep 2020 | 30 Sep 2019 | 30 Sep 2020 | 31 Mar 2020 | |
| Net sales | 2,723 | 2,917 | 5,528 | 5,851 | 11,412 | 11,735 |
| Cost of sales | -1,904 | -1,993 | -3,863 | -4,022 | -7,929 | -8,088 |
| Gross profit | 819 | 924 | 1,665 | 1,829 | 3,483 | 3,647 |
| Selling expenses | -421 | -447 | -868 | -906 | -1,831 | -1,869 |
| Administrative expenses | -154 | -161 | -304 | -332 | -679 | -707 |
| Other operating income and expenses | -2 | 13 | -8 | 30 | 52 | 90 |
| Operating profit | 242 | 329 | 485 | 621 | 1,025 | 1,161 |
| - as % of net sales | 8.9 | 11.2 | 8.8 | 10.6 | 9.0 | 9.9 |
| Financial income and expenses | -15 | -22 | -25 | -28 | -53 | -56 |
| Profit after financial items | 227 | 307 | 460 | 593 | 972 | 1,105 |
| - as % of net sales | 8.3 | 10.5 | 8.3 | 10.1 | 8.5 | 9.4 |
| Income tax expense | -46 | -67 | -95 | -127 | -200 | -232 |
| Profit for the period | 181 | 240 | 365 | 466 | 772 | 873 |
| Profit for the period attributable to: | ||||||
| Equity holders of the Parent Company | 176 | 237 | 355 | 461 | 756 | 862 |
| Non-controlling interests | 5 | 3 | 10 | 5 | 16 | 11 |
| Earnings per share before dilution, SEK | 0.65 | 0.85 | 1.30 | 1.70 | 2.80 | 3.20 |
| Earnings per share after dilution, SEK | 0.65 | 0.85 | 1.30 | 1.70 | 2.80 | 3.20 |
| Average number of shares after repurchases, '000s | 269,022 | 268,740 | 268,906 | 268,594 | 268,649 | 268,493 |
| Number of shares at end of the period, '000s | 269,022 | 268,344 | 269,022 | 268,344 | 269,022 | 268,594 |
The number of shares has been restated to take the share split (4:1) completed in September 2020 into account, and has been used in all calculations of key figures for SEK per share.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
| SEKm | 3 months | 6 months | Rolling 12 months | |||
|---|---|---|---|---|---|---|
| 30 Sep 2020 | 30 Sep 2019 | 30 Sep 2020 | 30 Sep 2019 | 30 Sep 2020 | 31 Mar 2020 | |
| Profit for the period | 181 | 240 | 365 | 466 | 772 | 873 |
| Items that may be reclassified to profit or loss | ||||||
| Cash flow hedges | -1 | 1 | -2 | 2 | -3 | 1 |
| Foreign currency translation differences for the period | 5 | 40 | -153 | 66 | -160 | 59 |
| Items that will not be reclassified to profit or loss | ||||||
| Actuarial effects of the net pension obligation | -24 | -46 | -24 | -46 | 13 | -9 |
| Other comprehensive income | -20 | -5 | -179 | 22 | -150 | 51 |
| Total comprehensive income | 161 | 235 | 186 | 488 | 622 | 924 |
| Total comprehensive income attributable to: | ||||||
| Equity holders of the Parent Company | 157 | 231 | 180 | 481 | 609 | 910 |
| Non-controlling interests | 4 | 4 | 6 | 7 | 13 | 14 |
ADDTECH AB (PUBL.) INTERIM REPORT 1 APRIL - 30 SEPTEMBER 2020
CONSOLIDATED BALANCE SHEET, CONDENSED
| SEKm | 30 Sep 2020 | 30 Sep 2019 | 31 Mar 2020 |
|---|---|---|---|
| Goodwill | 2,553 | 1,917 | 1,997 |
| Other intangible non-current assets | 1,725 | 1,246 | 1,243 |
| Property, plant and equipment | 883 | 873 | 936 |
| Financial non-current assets | 66 | 62 | 64 |
| Total non-current assets | 5,227 | 4,098 | 4,240 |
| Inventories | 1,810 | 1,632 | 1,642 |
| Current receivables | 2,053 | 2,150 | 2,261 |
| Cash and cash equivalents | 467 | 258 | 363 |
| Total current assets | 4,330 | 4,040 | 4,266 |
| Total assets | 9,557 | 8,138 | 8,506 |
| Total equity | 3,028 | 2,627 | 3,076 |
| Interest-bearing provisions | 359 | 374 | 332 |
| Non-interest-bearing provisions | 375 | 340 | 284 |
| Non-current interest-bearing liabilities | 2,326 | 1,411 | 2,154 |
| Non-current non-interest-bearing liabilities | 2 | 6 | 2 |
| Total non-current liabilities | 3,062 | 2,131 | 2,772 |
| Non-interest-bearing provisions | 64 | 47 | 46 |
| Current interest-bearing liabilities | 1,289 | 1,390 | 462 |
| Current non-interest-bearing liabilities | 2,114 | 1,943 | 2,150 |
| Total current liabilities | 3,467 | 3,380 | 2,658 |
| Total equity and liabilities | 9,557 | 8,138 | 8,506 |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY, CONDENSED
| SEKm | 30 Sep 2020 | 30 Sep 2019 | 31 Mar 2020 |
|---|---|---|---|
| Opening balance | 3,076 | 2,520 | 2,520 |
| Exercised, issued and repurchased options | -5 | 0 | 16 |
| Repurchase of treasury shares | - | -42 | -42 |
| Dividend, ordinary | -269 | -336 | -336 |
| Dividend, non-controlling interests | -1 | -7 | -10 |
| Change non-controlling interests | 163 | 4 | 4 |
| Option debt, acquisition | -122 | - | - |
| Total comprehensive income | 186 | 488 | 924 |
| Closing balance | 3,028 | 2,627 | 3,076 |
ADDTECH AB (PUBL.) INTERIM REPORT 1 APRIL - 30 SEPTEMBER 2020
CONSOLIDATED CASH FLOW STATEMENT, CONDENSED
| SEKm | 3 months | 6 months | Rolling 12 months | |||
|---|---|---|---|---|---|---|
| 30 Sep 2020 | 30 Sep 2019 | 30 Sep 2020 | 30 Sep 2019 | 30 Sep 2020 | 31 Mar 2020 | |
| Profit after financial items | 227 | 307 | 460 | 593 | 972 | 1,105 |
| Adjustment for items not included in cash flow | 138 | 111 | 267 | 185 | 436 | 354 |
| Income tax paid | -79 | -71 | -139 | -116 | -296 | -273 |
| Changes in working capital | -43 | -81 | -21 | -143 | 53 | -69 |
| Cash flow from operating activities | 243 | 266 | 567 | 519 | 1,165 | 1,117 |
| Net investments in non-current assets | -14 | -26 | -29 | -57 | -74 | -102 |
| Acquisitions and disposals | -158 | -46 | -888 | -295 | -1,023 | -430 |
| Cash flow from investing activities | -172 | -72 | -917 | -352 | -1,097 | -532 |
| Dividend paid to shareholders | -269 | -336 | -269 | -336 | -269 | -336 |
| Repurchase of own shares/change of options | -22 | -48 | -5 | -42 | 11 | -26 |
| Other financing activities | 236 | 207 | 749 | 167 | 437 | -145 |
| Cash flow from financing activities | -55 | -177 | 475 | -211 | 179 | -507 |
| Cash flow for the period | 16 | 17 | 125 | -44 | 247 | 78 |
| Cash and cash equivalents at beginning of period | 453 | 233 | 363 | 295 | 258 | 295 |
| Exchange differences on cash and cash equivalents | -2 | 8 | -21 | 7 | -38 | -10 |
| Cash and cash equivalents at end of period | 467 | 258 | 467 | 258 | 467 | 363 |
FAIR VALUES ON FINANCIAL INSTRUMENTS
| SEKm | 30 Sep 2020 | 31 Mar 2020 | ||||
|---|---|---|---|---|---|---|
| Carrying amount | Level 2 | Level 3 | Carrying amount | Level 2 | Level 3 | |
| Derivatives - fair value, hedge instruments | 1 | 1 | - | 6 | 6 | - |
| Derivatives - fair value through profit | 2 | 2 | - | 5 | 5 | - |
| Total financial assets at fair value per level | 3 | 3 | - | 11 | 11 | - |
| Derivatives - fair value, hedge instruments | 1 | 1 | - | 1 | 1 | - |
| Derivatives - fair value through profit | 3 | 3 | - | 4 | 4 | - |
| Contingent considerations - fair value through profit | 245 | - | 245 | 151 | - | 151 |
| Total financial liabilities at fair value per level | 249 | 4 | 245 | 156 | 5 | 151 |
The fair value and carrying amount are recognised in the balance sheet as shown in the table above.
For quoted securities, the fair value is determined on the basis of the asset's quoted price in an active market, level 1.
As at the reporting date the Group had no items in this category.
For currency contracts and embedded derivatives, the fair value is determined on the basis of observable market data, level 2.
For contingent considerations, a cash-flow-based valuation is performed, which is not based on observable market data, level 3.
For the Group's other financial assets and liabilities, fair value is estimated to be the same as the carrying amount.
| Contingent considerations | 30 Sep 2020 | 31 Mar 2020 |
|---|---|---|
| Opening balance | 151 | 198 |
| Acquisitions during the year | 125 | 63 |
| Reversed through profit or loss | -7 | -52 |
| Consideration paid | -23 | -65 |
| Interest expenses | 5 | 3 |
| Exchange differences | -6 | 4 |
| Closing balance | 245 | 151 |
ADDTECH AB (PUBL.) INTERIM REPORT 1 APRIL - 30 SEPTEMBER 2020
KEY FINANCIAL INDICATORS
| 12 months ending | |||||
|---|---|---|---|---|---|
| 30 Sep 2020 | 31 Mar 2020 | 30 Sep 2019* | 31 Mar 2019 | 31 Mar 2018 | |
| Net sales, SEKm | 11,412 | 11,735 | 11,266 | 10,148 | 8,022 |
| EBITDA, SEKm | 1,489 | 1,579 | 1,329 | 1,137 | 881 |
| EBITA, SEKm | 1,255 | 1,364 | 1,274 | 1,085 | 838 |
| EBITA-margin, % | 11.0 | 11.6 | 11.3 | 10.7 | 10.5 |
| Operating profit, SEKm | 1,025 | 1,161 | 1,082 | 910 | 701 |
| Operating margin, % | 9.0 | 9.9 | 9.6 | 9.0 | 8.7 |
| Profit after financial items, SEKm | 972 | 1,105 | 1,034 | 865 | 665 |
| Profit for the period, SEKm | 772 | 873 | 804 | 672 | 526 |
| Working capital | 2,468 | 2,415 | 2,267 | 2,029 | 1,591 |
| Return on working capital (P/WC), % | 51 | 56 | 56 | 53 | 53 |
| Return on equity, % | 26 | 32 | 33 | 29 | 28 |
| Return on capital employed, % | 17 | 21 | 22 | 21 | 22 |
| Equity ratio, % | 32 | 36 | 32 | 36 | 39 |
| Financial net debt, SEKm | 3,507 | 2,585 | 2,917 | 1,960 | 1,405 |
| Debt / equity ratio, multiple | 1.2 | 0.8 | 1.1 | 0.8 | 0.7 |
| Financial net debt / EBITDA, multiple | 2.4 | 1.6 | 2.2 | 1.7 | 1.6 |
| Net debt excl. pensions, SEKm | 3,148 | 2,253 | 2,543 | 1,700 | 1,176 |
| Net debt, excl pensions / equity ratio, multiple | 1.0 | 0.7 | 1.0 | 0.7 | 0.6 |
| Interest coverage ratio, multiple | 16.9 | 20.5 | 24.5 | 22.1 | 22.7 |
| Average number of employees | 2,990 | 2,913 | 2,790 | 2,590 | 2,283 |
| Number of employees at end of the period | 3,090 | 2,981 | 2,941 | 2,759 | 2,358 |
KEY FINANCIAL INDICATORS PER SHARE
| SEK | 12 months ending | ||||
|---|---|---|---|---|---|
| 30 Sep 2020 | 31 Mar 2020 | 30 Sep 2019* | 31 Mar 2019 | 31 Mar 2018 | |
| Earnings per share before dilution | 2.80 | 3.20 | 2.90 | 2.45 | 1.90 |
| Earnings per share after dilution | 2.80 | 3.20 | 2.90 | 2.45 | 1.90 |
| Cash flow from operating activities per share | 4.35 | 4.15 | 3.10 | 1.95 | 2.00 |
| Shareholders' equity per share | 10.40 | 11.25 | 9.60 | 9.20 | 7.80 |
| Share price at the end of the period | 117.60 | 61.13 | 64.00 | 48.25 | 42.00 |
| Average number of shares after repurchases, '000s | 268,649 | 268,493 | 268,321 | 268,187 | 267,799 |
| Average number of shares adjusted for repurchases and dilution, '000s | 269,184 | 269,200 | 268,721 | 268,755 | 268,710 |
| Number of shares outstanding at end of the period, '000s | 269,022 | 268,594 | 268,344 | 268,228 | 267,969 |
The number of shares has been restated to take the share split (4:1) completed in September 2020 into account, and has been used in all calculations of key figures for SEK per share.
*Performance based figures for rolling 12 months in the income statement exclude the effect of IFRS 16.
For definitions of key financial indicators, see page 17-19
ADDTECH AB (PUBL.) INTERIM REPORT 1 APRIL - 30 SEPTEMBER 2020
PARENT COMPANY INCOME STATEMENT
| SEKm | 3 months | 6 months | Rolling 12 months | |||
|---|---|---|---|---|---|---|
| 30 Sep 2020 | 30 Sep 2019 | 30 Sep 2020 | 30 Sep 2019 | 30 Sep 2020 | 31 Mar 2020 | |
| Net sales | 18 | 15 | 36 | 30 | 77 | 71 |
| Administrative expenses | -18 | -21 | -34 | -45 | -97 | -108 |
| Operating profit/loss | 0 | -6 | 2 | -15 | -20 | -37 |
| Interest income and expenses and similar items | -5 | -6 | -3 | 0 | -7 | -4 |
| Profit after financial items | -5 | -12 | -1 | -15 | -27 | -41 |
| Appropriations | - | - | - | - | 310 | 310 |
| Profit before taxes | -5 | -12 | -1 | -15 | 283 | 269 |
| Income tax expense | 1 | 3 | 0 | 3 | -63 | -60 |
| Profit for the period | -4 | -9 | -1 | -12 | 220 | 209 |
| Total comprehensive income | -4 | -9 | -1 | -12 | 220 | 209 |
PARENT COMPANY BALANCE SHEET
| SEKm | 30 Sep 2020 | 30 Sep 2019 | 31 Mar 2020 |
|---|---|---|---|
| Intangible non-current assets | 1 | - | 1 |
| Property, plant and equipment | 0 | 1 | 0 |
| Non-current financial assets | 3,677 | 2,643 | 2,808 |
| Total non-current assets | 3,678 | 2,644 | 2,809 |
| Current receivables | 441 | 690 | 563 |
| Cash and bank balances | - | - | - |
| Total current assets | 441 | 690 | 563 |
| Total assets | 4,119 | 3,334 | 3,372 |
| Equity | 230 | 269 | 506 |
| Untaxed reserves | 131 | 447 | 131 |
| Provisions | 14 | 14 | 15 |
| Non-current liabilities | 1,919 | 996 | 1,727 |
| Current liabilities | 1,825 | 1,608 | 993 |
| Total equity and liabilities | 4,119 | 3,334 | 3,372 |
ADDTECH AB (PUBL.) INTERIM REPORT 1 APRIL - 30 SEPTEMBER 2020
DEFINITIONS
Return on equity²
Earnings after tax divided by equity. The components are calculated as the average of the last 12 months.
Return on equity measures the return generated on owners' invested capital.
Return on working capital (P/WC)¹
EBITA divided by working capital.
P/WC is used to analyse profitability and is a measure that encourages high EBITA and low working capital requirements.
Return on capital employed¹
Profit after financial items plus financial expenses as a percentage of capital employed. The components are calculated as the average of the last 12 months.
Return on capital employed shows the Group's profitability in relation to externally financed capital and equity, see the reconciliation table on page 20.
EBITA¹
Operating profit before amortisation of intangible assets.
EBITA is used to analyse the profitability generated by operating activities, see reconciliation table on page 20.
EBITA-margin¹
EBITA as a percentage of net sales.
EBITA margin is used to the show the degree of profitability in operating activities.
EBITDA¹
Operating profit before depreciation and amortisation.
EBITDA is used to analyse the profitability generated by operating activities, see reconciliation table on page 20.
Equity per share¹
Equity divided by number of shares outstanding at the reporting period's end.
This measures how much equity is attributable to each share and is published to make it easier for investors to conduct analyses and make decisions.
Financial net debt¹
The net of interest-bearing debt and provisions minus cash and cash equivalents.
Net debt is used to monitor changes in debt, analyse the Group indebtedness and its ability to repay its debts using liquid funds generated from the Group's operating activities if all debt fell due for repayment today and any necessary refinancing.
Financial net debt/EBITDA¹
Net financial debt divided by EBITDA.
Net financial debt compared with EBITDA provides a performance measure for net debt in relation to cash-generating earnings in the business, i.e. it gives an indication of the business' ability to repay its debts. This measure is generally used by financial institutions to measure creditworthiness.
Financial items¹
Finance income minus finance costs.
Used to describe changes in the Group's financial activities.
Acquired growth¹
Changes in net sales attributable to business acquisitions compared with the same period last year.
Acquired growth is used as a component to describe the change in consolidated net sales in which acquired growth is distinguished from organic growth, divestments and exchange rate effects, see reconciliation table on page 20.
ADDTECH AB (PUBL.) INTERIM REPORT 1 APRIL - 30 SEPTEMBER 2020
ADDTECH AB (PUBL.) INTERIM REPORT 1 APRIL - 30 SEPTEMBER 2020
Cash flow from operating activities per share¹
Cash flow from operating activities, divided by the average number of outstanding shares after repurchase.
This measure is used so investors can easily analyse the size of the surplus generated per share from operating activities.
Net investments in non-current assets¹
Investments in non-current assets minus sales of non-current assets.
This measure is used to analyse the Group's investments in renewing and developing property, plant and equipment.
Net debt excluding pensions¹
The net of interest-bearing debt and provisions excluding pensions minus cash and cash equivalents.
A measure used to analyse financial risk, see reconciliation table on page 20.
Net debt excluding pensions/ equity ratio¹ ²
Net debt excluding pensions divided by shareholders' equity.
A measure used to analyse financial risk, see reconciliation table on page 20.
Organic growth¹
Changes in net sales excluding currency effects, acquisitions and divestments compared with the same period last year.
Organic growth is used to analyse underlying sales growth driven a change in volumes, product range and price for similar products between different periods, see reconciliation table on page 20.
Profit after financial items¹
Profit/loss for the period before tax.
Used to analyse the business' profitability including financial activities.
Earnings per share (EPS)
Shareholders' share of profit for the period after tax, divided by the weighted average number of shares during the period.
Earnings per share (EPS), diluted
Shareholders' share of profit for the period after tax, divided by the weighted average number of shares during the period, adjusted for the additional number of shares in the event of outstanding options being used.
Interest coverage ratio¹
Earnings after net financial items plus interest expense and bank charges divided by interest expense and bank charges.
This performance indicator measures the Group's capacity through its business operations and finance income to generate a sufficiently large surplus to cover its finance costs, see reconciliation table on page 20.
Working capital¹
Working capital (WC) is measured through an annual average defined as inventories plus accounts receivable less accounts payable.
Working capital is used to analyse how much working capital is tied up in the business, see reconciliation table on page 20.
Operating margin¹
Operating profit as a percentage of net sales.
This measure is used to specify the percentage of sales that is left to cover interest and tax, and to provide a profit, after the company's costs have been paid.
Operating profit¹
Operating income minus operating expenses.
Used to describe the Group's earnings before interest and tax.
18
Debt/equity ratio¹²
Financial net liabilities divided by equity.
A measure used to analyse financial risk.
Equity ratio¹²
Equity as a percentage of total assets.
The equity/assets ratio is used to analyse financial risk and show the percentage of assets that are funded with equity.
Capital employed¹
Total assets minus non-interest-bearing liabilities and provisions.
Capital employed shows the size of the company's assets that have been lent to the company's owners or that have been lent out by lenders, see reconciliation table on page 20.
Outstanding shares
Total number of shares less treasury shares repurchased by the Company.
¹The performance measure is an alternative performance measure according to ESMA's guidelines.
²Minority interest is included in equity when the performance measures are calculated.
ADDTECH AB (PUBL.) INTERIM REPORT 1 APRIL - 30 SEPTEMBER 2020
RECONCILIATION TABLES ALTERNATIVE PERFORMANCE MEASURES
| EBITA and EBITDA | 12 months ending | |||||
|---|---|---|---|---|---|---|
| Addtech Group, SEKm | 30 Sep 2020 | 31 Mar 2020 | 30 Sep 2019* | 31 Mar 2019 | 31 Mar 2018 | |
| Operating profit according to Interim report | 1,025 | 1,161 | 1,082 | 910 | 701 | |
| Amortization, intangible assets (+) | 230 | 203 | 192 | 175 | 137 | |
| EBITA | 1,255 | 1,364 | 1,274 | 1,085 | 838 | |
| Depreciation, tangible assets (+) | 234 | 215 | 55 | 52 | 43 | |
| EBITDA | 1,489 | 1,579 | 1,329 | 1,137 | 881 | |
| Working capital and return on working capital (P/WC) | 12 months ending | |||||
| --- | --- | --- | --- | --- | --- | --- |
| Addtech Group, SEKm | 30 Sep 2020 | 31 Mar 2020 | 30 Sep 2019* | 31 Mar 2019 | 31 Mar 2018 | |
| EBITA (12 months rolling) | 1,255 | 1,364 | 1,274 | 1,085 | 838 | |
| Inventory, yearly average (+) | 1,681 | 1,594 | 1,482 | 1,304 | 1,037 | |
| Accounts receivables, yearly average (+) | 1,819 | 1,854 | 1,725 | 1,542 | 1,231 | |
| Accounts payables, yearly average (-) | 1,032 | 1,033 | 940 | 817 | 677 | |
| Working capital (average) | 2,468 | 2,415 | 2,267 | 2,029 | 1,591 | |
| Return on working capital (R/RK) (%) | 51% | 56% | 56% | 53% | 53% | |
| Acquired- and organic growth | ||||||
| --- | --- | --- | --- | --- | --- | --- |
| 3 months | 6 months | |||||
| Addtech Group | 30 Sep 2020 | 30 Sep 2019 | 30 Sep 2020 | 30 Sep 2019 | ||
| Acquired growth (SEKm,%) | 173 (6%) | 182 (8%) | 303 (5%) | 438 (9%) | ||
| Organic growth (SEKm,%) | -286 (-10%) | 389 (17%) | -498 (-9%) | 672 (14%) | ||
| Divestments (SEKm,%) | -1 (0%) | -20 (-1%) | -2 (0%) | -57 (-1%) | ||
| Exchange rate effect (SEKm,%) | -80 (-3%) | 28 (1%) | -126 (-2%) | 65 (2%) | ||
| Total growth (SEKm,%) | -194 (-7%) | 579 (25%) | -323 (-6%) | 1,118 (24%) | ||
| Interest coverage ratio | 12 months ending | |||||
| Addtech Group | 30 Sep 2020 | 31 Mar 2020 | 30 Sep 2019* | |||
| Profit after financial items, SEKm | 972 | 1,105 | 1,034 | |||
| Interest expenses and bank charges (+), SEKm | 61 | 57 | 44 | |||
| Total | 1,033 | 1,162 | 1,078 | |||
| Interest coverage ratio, multiple | 16.9 | 20.5 | 24.5 | |||
| Net debt excl. pensions and net debt, excl pensions/equity ratio | ||||||
| Addtech Group | 30 Sep 2020 | 31 Mar 2020 | 30 Sep 2019* | 31 Mar 2019 | ||
| Financial net debt, SEKm | 3,507 | 2,585 | 2,917 | 1,960 | ||
| Pensions (-), SEKm | -359 | -332 | -374 | -260 | ||
| Net debt excluding pensions | 3,148 | 2,253 | 2,543 | 1,700 | ||
| Equity, SEKm | 3,028 | 3,076 | 2,627 | 2,520 | ||
| Net debt to Equity ratio (excluding pensions), multiple | 1.0 | 0.7 | 1.0 | 0.7 | ||
| Capital employed and return on capital employed | ||||||
| Addtech Group, SEKm | 30 Sep 2020 | 31 Mar 2020 | 30 Sep 2019* | 31 Mar 2019 | ||
| Profit after financial items | 972 | 1,105 | 1,034 | 865 | ||
| Financial expenses (+) | 85 | 79 | 66 | 62 | ||
| Profit after financial items plus financial expenses | 1,057 | 1,184 | 1,100 | 927 | ||
| Total assets, yearly average (+) | 8,709 | 7,926 | 7,233 | 6,324 | ||
| Non-interest-bearing liabilities, yearly average (-) | -2,039 | -1,947 | -1,771 | -1,604 | ||
| Non-interest-bearing provisions, yearly average (-) | -390 | -379 | -393 | -378 | ||
| Capital employed | 6,280 | 5,600 | 5,069 | 4,342 | ||
| Return on capital employed, % | 17% | 21% | 22% | 21% |
*Performance based figures for rolling 12 months in the income statement exclude the effect of IFRS 16.
ADDTECH AB (PUBL.) INTERIM REPORT 1 APRIL - 30 SEPTEMBER 2020
This is Addtech
Addtech is a Swedish, listed technology trading group that combines the flexibility and speed of a small company with the resources of a large company. We acquire, own and develop independent subsidiaries that sell various high-tech products and solutions to customers, primarily within industry and infrastructure. With in-depth expertise in a number of different niches, our subsidiaries generate added technical, financial and sustainable value for customers and suppliers alike, thus helping increase the efficiency and competitiveness of all involved. We currently own some 130 companies in 20 countries, and have a long history of sustainable, profitable growth.
Our vision
We are to be a leader in value-adding technology trading, perceived as the most skilled and long-term partner of our customers, suppliers and employees.
Business concept in brief
Addtech offers high-tech products and solutions for companies in the manufacturing and infrastructure sectors. Addtech contributes added technical and financial value by being a skilled and professional partner for customers and manufacturers.
We build shareholder value through:
- our 130 subsidiaries and their capacity to generate earnings growth
- corporate governance that ensures the companies achieve even better results and development
- acquisitions that bring in new employees, customers and suppliers
ADDTECH AB (PUBL.) Org.nr: 556302-9726, Box 5112, 102 43 Stockholm, Visiting address: Birger Jarlsgatan 43 Tel: +46 8 470 49 00, [email protected]
ADDTECH AB (PUBL.) INTERIM REPORT 1 APRIL - 30 SEPTEMBER 2020