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Addtech AB Interim / Quarterly Report 2022
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Interim / Quarterly Report
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ADDTECH
INTERIM REPORT 1 APRIL - 30 SEPTEMBER 2021
SECOND QUARTER (1 JULY - 30 SEPTEMBER 2021)
- Net sales increased by 20 percent and amounted to SEK 3,257 million (2,723).
- Operating profit before amortisation of intangible non-current assets (EBITA) increased by 39 percent and amounted to SEK 425 million (306) corresponding to an EBITA margin of 13.1 percent (11.2).
- Operating profit increased by 45 percent and amounted to SEK 351 million (242) corresponding to an operating margin of 10.8 percent (8.9).
- Profit after tax increased by 45 percent and amounted to SEK 263 million (181) and earnings per share before/after dilution amounted to SEK 0.95 (0.65).
PERIOD (1 APRIL - 30 SEPTEMBER 2021)
- Net sales increased by 18 percent and amounted to SEK 6,536 million (5,528).
- Operating profit before amortisation of intangible non-current assets (EBITA) increased by 35 percent and amounted to SEK 827 million (612) corresponding to an EBITA margin of 12.7 percent (11.1).
- Operating profit increased by 41 percent and amounted to SEK 683 million (485) corresponding to an operating margin of 10.4 percent (8.8).
- Profit after tax increased by 40 percent and amounted to SEK 513 million (365) and earnings per share before/after dilution amounted to SEK 1.85 (1.30). For the latest twelve month period earnings per share before/after dilution amounted to SEK 3.15 (2.80).
- Return on working capital (P/WC) amounted to 61 percent (51).
- Return on equity amounted to 26 percent (26) and the equity ratio amounted to 32 percent (32).
- Cash flow from operating activities amounted to SEK 435 million (567). For the latest twelve month period, cash flow per share from operating activities amounted to SEK 5.10 (4.35).
- Since the start of the financial year eleven acquisitions have been completed, of which two after the end of the period, with total annual sales of about SEK 840 million.
| GROUP SUMMARY | 3 months | 6 months | Rolling 12 months | |||||
|---|---|---|---|---|---|---|---|---|
| 30 Sep 2021 | 30 Sep 2020 | Δ | 30 Sep 2021 | 30 Sep 2020 | Δ | 30 Sep 2021 | 31 Mar 2021 | |
| Net sales | 3,257 | 2,723 | 20% | 6,536 | 5,528 | 18% | 12,344 | 11,336 |
| EBITA | 425 | 306 | 39% | 827 | 612 | 35% | 1,466 | 1,251 |
| EBITA-margin % | 13.1 | 11.2 | 12.7 | 11.1 | 11.9 | 11.0 | ||
| Profit after financial items | 337 | 227 | 48% | 655 | 460 | 42% | 1,132 | 937 |
| Profit for the period | 263 | 181 | 45% | 513 | 365 | 40% | 877 | 729 |
| Earnings per share before dilution, SEK | 0.95 | 0.65 | 46% | 1.85 | 1.30 | 42% | 3.15 | 2.60 |
| Earnings per share after dilution, SEK | 0.95 | 0.65 | 46% | 1.85 | 1.30 | 42% | 3.15 | 2.60 |
| Cash flow from operating activities per share, SEK | - | - | - | - | 5.10 | 5.60 | ||
| Return on equity, % | 26 | 26 | 26 | 26 | 26 | 23 | ||
| Equity ratio, % | 32 | 32 | 32 | 32 | 32 | 35 |
Comparisons in parentheses refer to the corresponding period of the previous year, unless stated otherwise.
ADDTECH AB (PUBL.) INTERIM REPORT 1 APRIL - 30 SEPTEMBER 2021
CEO'S COMMENTS
SECOND QUARTER – STRONG QUARTER WITH HIGH DEMAND
We experienced very strong underlying demand in the second quarter, with good growth in all business areas resulting in an organic increase in sales of 10 percent. The shortage of components has been handled in exemplary manner by our companies and is judged to have had only a limited impact on the Group's overall capacity to deliver to customers during the period. The market situation, combined with continued good cost control and well-handled price increases from suppliers gave record high margins and gave an EBITA growth of 39 percent for the quarter. It is very satisfying to see our business model demonstrate its strength. Our entrepreneurial companies, which operate in close proximity to the market and maintain strong relationships with suppliers, have again shown their resilience, continuing to foster optimum conditions for sustained profitable growth.
MARKET TREND
Most key customer segments and geographies showed heightened demand, partly intensified by the prevailing shortages of components and prolonged lead times, causing stockpiling for contingencies. Sales of input components to manufacturing companies in special vehicles and the mechanical industry were fundamentally strong, even when taking the less challenging comparison figures into account. The market situation was also highly favourable in the forest and sawmill industry, wind power and electronics, while infrastructure products for rebuilding and expanding national and regional grids, as well as medical technology products, were stable at attractive levels. The marine sector remained weak, while sales of electricity-related products to construction and installation customers developed positively.
From a geographical perspective, the market situation was strongest in Sweden and Finland, stable at a high level in Denmark, while the pace of business was slightly lower in Norway, although the sequential trend was positive. For our companies operating outside the Nordic region, market conditions improved further during the quarter.
ACQUISITIONS
Acquisition activity remains at a high level in all business areas. Five acquisitions were made in the second quarter, with two more being completed after the end of the period. Since the beginning of the financial year, a total of 11 companies have been acquired, adding total annual sales of approximately SEK 840 million and bringing some 240 new employees into the Group. Several of the acquisitions have a clear sustainability profile and we continue to expand outside the Nordic region, in line with our acquisition strategy. With our financial strength and attractive acquisition pipeline, we perceive favourable opportunities for maintaining a good acquisition rate. Many privately owned companies want to sell to Addtech to maintain their decentralised responsibility while receiving development support from an active, long-term owner and gaining access to relevant networks.
OUTLOOK
During the quarter, our order backlog was further strengthened. We expect continued strong underlying demand to stabilise at high levels as supply chains normalise. We also estimate that our cost base will increase in the upcoming quarters as our companies' sales promotion activities increase. Looking ahead, it is also uncertain how any further supply chain disruptions may affect our companies.
As of 1 October, we have sharpened our organisation. By adapting the operations and further strengthening the network between the companies, we generate conditions to derive optimum benefit from future growth opportunities. Recent years' increased focus on sustainable technological solutions, combined with a high acquisition rate, has afforded us a strong position with major growth opportunities, both in the Nordic region and internationally. Although the new organisation still comprises five business areas, their niche strategies have been sharpened to enhance clarity, both internally as well as towards the acquisition and capital markets, and to seize future growth potential more effectively, both organically and through acquisitions.
Niklas Stenberg
President and CEO
ADDTECH AB (PUBL.) INTERIM REPORT 1 APRIL - 30 SEPTEMBER 2021
GROUP DEVELOPMENT
Sales development
Net sales in the Addtech Group increased in the second quarter by 20 percent to SEK 3,257 million (2,723). The organic growth amounted to 10 percent and acquired growth amounted to 10 percent. Exchange rate changes affect net sales marginally negatively, corresponding to SEK 11 million.
Net sales in the Addtech Group during the period increased by 18 percent to SEK 6,536 million (5,528). The organic growth amounted to 11 percent and acquired growth amounted to 9 percent. Exchange rate changes had a negative effect of 2 percent on net sales, corresponding to SEK 72 million.
Profit development
EBITA in the second quarter amounted to SEK 425 million (306), representing an increase of 39 percent. Operating profit increased during the quarter by 45 percent to SEK 351 million (242) and the operating margin amounted to 10.8 percent (8.9). Net financial items amounted to SEK -14 million (-15) and profit after financial items increased by 48 percent to SEK 337 million (227).
Profit after tax increased by 45 percent to SEK 263 million (181) corresponding to earnings per share before/after dilution of SEK 0.95 (0.65).
EBITA for the period amounted to SEK 827 million (612), representing an increase of 35 percent. Operating profit increased during the period by 41 percent to SEK 683 million (485) and the operating margin amounted to 10.4 percent (8.8). Net financial items were SEK -28 million (-25) and profit after financial items increased by 42 percent to SEK 655 million (460).
Profit after tax for the period increased by 40 percent to SEK 513 million (365) and the effective tax rate amounted to 22 percent (21). Earnings per share before/after dilution for the period amounted to SEK 1.85 (1.30). For the latest twelve month period, earnings per share before/after dilution amounted to SEK 3.15 (2.80).
ADDTECH AB (PUBL.) INTERIM REPORT 1 APRIL - 30 SEPTEMBER 2021
DEVELOPMENT IN THE BUSINESS AREAS
AUTOMATION
Net sales in Automation increased in the second quarter by 17 percent to SEK 657 million (562) and EBITA increased by 35 percent to SEK 81 million (60). Net sales during the period increased by 15 percent to SEK 1,314 million (1,145) and EBITA increased by 36 percent to SEK 150 million (110).
Market
Both demand and sales were highly favourable in all segments of significance to the business area, such as the engineering industry, medical technology, the defence industry, as well as data and telecom. The market situation was positive in all geographies, with the recovery remaining strongest in the units outside the Nordic region. Combined with low costs, the increased volumes had a positive effect on margins for the quarter.
COMPONENTS
Net sales in Components increased in the second quarter by 17 percent to SEK 572 million (487) and EBITA increased by 47 percent to SEK 73 million (50). Net sales during the period increased by 17 percent to SEK 1,146 million (983) and EBITA increased by 39 percent to SEK 139 million (100).
Market
The market for input components remained at a very high level and demand was strong throughout the quarter in key market segments, including the engineering industry, special vehicles, medical technology, wind power and electronics. The market situation was highly favourable in Finland and Sweden, remained good in Denmark and was stable in Norway. Implemented efficiency measures and continued low overheads resulted in good margins for the quarter.
ENERGY
Net sales in Energy increased in the second quarter by 6 percent to SEK 674 million (633) and EBITA increased by 15 percent to SEK 90 million (79). Net sales during the period increased by 4 percent to SEK 1,374 million (1,316) and EBITA increased by 13 percent to SEK 180 million (160).
Market
The business situation remained favourable for niche products for electricity distribution, for the expansion of fibre-optic networks and for construction and installation, and the market situation in wind power was strong. Demand for infrastructure products for national and regional grids was good, while sales were stable as expected. Good cost control combined with increased volumes had favourable effects on operating margins.
INDUSTRIAL PROCESS
Net sales in Industrial Process increased in the second quarter by 26 percent to SEK 855 million (680) and EBITA increased by 57 percent to SEK 121 million (77). Net sales during the period increased by 24 percent to SEK 1,678 million (1,349) and EBITA increased by 56 percent to SEK 235 million (150).
Market
For the business area's companies exposed to the engineering industry, special vehicles and the process industry, both demand and sales developed very well in the Nordic region and the rest of Europe alike. The market situation for projects in the forest and sawmill industry was very strong while activity remained low for the companies exposed to the marine segment.
POWER SOLUTIONS
Net sales in Power Solutions increased in the second quarter by 39 percent to SEK 507 million (365) and EBITA increased by 49 percent to SEK 69 million (46). Net sales during the period increased by 39 percent to SEK 1,036 million (746) and EBITA increased by 50 percent to SEK 144 million (96).
Market
Growth was very good among the companies operating in control and ergonomics products for special vehicles, even when adjusted for last year's pandemic effects. The market situation was favourable for the companies operating in components and systems for electrification projects, while it was stable in wind power. Although the cost level remained low, profit was impacted negatively by non-recurring costs of about SEK 6 million.
ADDTECH AB (PUBL.) INTERIM REPORT 1 APRIL - 30 SEPTEMBER 2021
OTHER FINANCIAL INFORMATION
Profitability, financial position and cash flow
The return on equity at the end of the period was 26 percent (26), and return on capital employed was 17 percent (17). Return on working capital P/WC (EBITA in relation to working capital) amounted to 61 percent (51).
At the end of the period the equity ratio amounted to 32 percent (32). Equity per share, excluding non-controlling interest, totalled SEK 12.30 (10.40). The Group's net debt at the end of the period amounted to SEK 3,480 million (3,148), excluding pension liabilities of SEK 336 million (359). 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 1,450 million (1,676) at 30 September 2021.
Cash flow from operating activities amounted to SEK 435 million (567) during the period. Company acquisitions and disposals including settlement of contingent consideration regarding acquisitions implemented in previous years amounted to SEK 592 million (888). Investments in non-current assets totalled SEK 36 million (33) and disposal of non-current assets amounted to SEK 6 million (4). Repurchase of call options amounted to SEK 36 million (22) and exercised call options totalled SEK 7 million (17). During the second quarter, dividend of SEK 1.20 (1.00) per share was paid, totalling SEK 323 million (269).
Employees
At the end of the period, the number of employees was 3,319 compared to 3,133 at the beginning of the financial year. During the period, completed acquisitions resulted in an increase of the number of employees by 198. The average number of employees in the latest 12-month period was 3,174.
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 | -3,451,272 | 1.3% | 0.9% | |
| Total number of shares after repurchases | 269,342,712 |
In accordance with a resolution of the August 2021 AGM, 100 members of management were offered the opportunity to acquire 1,000,000 call options on repurchased Class B shares. In total, 768,070 options were subscribed for. Addtech has four outstanding call option programmes for a total of 3,315,070 shares. Call options issued on repurchased shares entail a dilution effect of about 0.3 percent during the latest 12-month period. Addtech's own shareholdings fully 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 |
|---|---|---|---|---|---|---|
| 2021/2025 | 768,070 | 768,070 | 0.3% | 214.40 | 214.40 | 9 Sep 2024 - 11 Jun 2025 |
| 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 | 86,750 | 347,000 | 0.1% | 232.90 | 58.23 | 6 Sep 2021 - 3 Jun 2022 |
| Total | 1,404,820 | 3,315,070 |
ADDTECH AB (PUBL.) INTERIM REPORT 1 APRIL - 30 SEPTEMBER 2021
Acquisitions and disposals
During the period, 1 April to 30 June 2021 the following acquisitions were completed; ESi Controls Ltd., Great Britain, was acquired to become part of the Power Solutions business area. Hydro-Material Oy, Finland, was acquired to become part of the Components business area. IETV Elektroteknik AB, Sweden, was acquired to become part of the Energy business area. AVT Industriteknik AB, Sweden, was acquired to become part of the Automation business area.
During the second quarter, five acquisitions took place:
On 1 July, EK Power Solutions AB, Sweden, was acquired to become part of the Components business area. EK Power has a leading position in the development of power electronics and electric motor control. The company has 25 employees and sales of approximately SEK 40 million.
On 1 July, KZ moder AB ("KZ Group"), Sweden, was acquired to become part of the Industrial Process business area. KZ Group is a leading supplier of components, equipment and solutions for the water grid as well as treatment of water and wastewater. KZ Group has 29 employees and sales of around SEK 100 million.
On 5 July, Finnchain Oy, Finland, was acquired to become part of the Industrial Process business area. Finnchain is a market leader in the design, manufacture and delivery of chain-driven sludge conveyor systems that optimize the cleaning of wastewater and desalination of seawater. Finnchain has 20 employees and sales of approximately EUR 7 million.
On 3 August, Tritech Solutions AB, Sweden, was acquired to become part of the Automation business area. Tritech Solutions delivers customized embedded computer systems, primarily to OEM-customers within industrial automation, medical technology, telecommunication and transportation. The company has 8 employees and sales of around SEK 60 million.
On 1 September, Systerra Computer GmbH ("Systerra"), Germany, was acquired to become part of the Automation business area. Systerra delivers high-end standard, customized and own products within embedded computer systems and network solutions. The company has 16 employees and sales of around EUR 9,5 million.
The purchase price allocation calculations for the acquisitions completed during the period 1 April – 30 September 2020 have now been finalised. No significant adjustments have been made to the calculations. Acquisitions completed as of the 2020/2021 financial year are distributed among the Group's business areas as follows:
| Acquisitions 2020/2021 | Closing | Net sales, SEKm* | Number of employees* | Business Area |
|---|---|---|---|---|
| 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 |
| OF-Beteiligungs AG, Switzerland | December, 2020 | 170 | 35 | Power Solutions |
| Powernor AS, Norway | January, 2021 | 35 | 6 | Power Solutions |
| Synective Labs AB, Sweden | January, 2021 | 30 | 27 | Automation |
| Impact Air Systems Ltd. and Impact Technical Services Ltd., Great Britain | January, 2021 | 95 | 33 | Industrial Process |
| Fairfield Trading Company Ltd., Great Britain | March, 2021 | 37 | 8 | Power Solutions |
| Acquisitions 2021/2022 | Closing | Net sales, SEKm* | Number of employees* | Business Area |
| --- | --- | --- | --- | --- |
| ESi Controls Ltd., Great Britain | April, 2021 | 95 | 15 | Power Solutions |
| Hydro-Material Oy, Finland | April, 2021 | 50 | 5 | Components |
| IETV Elektroteknik AB, Sweden | May, 2021 | 80 | 38 | Energy |
| AVT Industriteknik AB, Sweden | May, 2021 | 70 | 42 | Automation |
| EK Power Solutions AB, Sweden | July, 2021 | 40 | 25 | Components |
| KZ moder AB, Sweden | July, 2021 | 100 | 29 | Industrial Process |
| Finnchain Oy, Finland | July, 2021 | 70 | 20 | Industrial Process |
| Tritech Solutions AB, Sweden | August, 2021 | 60 | 8 | Automation |
| Systerra Computer GmbH, Germany | September, 2021 | 95 | 16 | Automation |
| ABH Stromschienen GmbH, Germany | October, 2021 | 100 | 22 | Electrification (Power Solutions) |
| Ko Hartog Verkeerstechniek B.V., Netherlands | October, 2021 | 80 | 18 | Energy |
- Refers to assessed condition at the time of acquisition on a full-year basis.
ADDTECH AB (PUBL.) INTERIM REPORT 1 APRIL - 30 SEPTEMBER 2021
If all acquisitions which have taken effect during the period had been completed on 1 April 2021, their impact would have been an estimated SEK 330 million on Group net sales, about SEK 40 million on operating profit and about SEK 30 million on profit after tax for the period.
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 97 million. The contingent purchase considerations fall due for payment within three years and the outcome is subject to a maximum of SEK 116 million.
Transaction costs for acquisitions that resulted in an ownership transfer during the period, amounted to SEK 6 million (5) and are reported under Selling expenses.
Revaluation of contingent consideration had a negative net effect of SEK 4 million (7) 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:
| SEKm | Carrying amount at acquisition date | Adjustment to fair value | Fair value |
|---|---|---|---|
| Intangible non-current assets | 2 | 293 | 295 |
| Other non-current assets | 16 | 16 | |
| Inventories | 101 | 101 | |
| Other current assets | 257 | 257 | |
| Deferred tax liability/tax asset | -3 | -63 | -66 |
| Other liabilities | -148 | -148 | |
| Acquired net assets | 225 | 230 | 455 |
| Goodwill 1) | 293 | ||
| Non-controlling interests 2) | -10 | ||
| Consideration 3) | 738 | ||
| Less: cash and cash equivalents in acquired businesses | -125 | ||
| Less: consideration not yet paid | -111 | ||
| Effect on the Group’s cash and cash equivalents | 502 |
1) Goodwill is justified by expected future sales trend and profitability as well as the personnel included in the acquired companies.
2) Non-controlling interests have been measured at fair value, which entails that goodwill is also reported for non-controlling interests.
3) The consideration is stated excluding acquisition expenses.
Parent Company
Parent Company net sales amounted to SEK 32 million (36) and profit after financial items was SEK -11 million (-1). Net investments in non-current assets were SEK 0 million (0). The Parent Company's financial net debt was SEK 315 million (654) at the end of the period.
ADDTECH AB (PUBL.) INTERIM REPORT 1 APRIL - 30 SEPTEMBER 2021
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. The new and revised IFRS standards and IFRIC statements that come into force as of the 2021/2022 financial year have had no material effect on the Group's financial reports.
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. These grants are recognised under other operating income or as a reduction in personnel expenses.
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.
Please see section Risks and uncertainties (page 58-60) in the annual report for 2020/2021 for further details.
The Parent Company is indirectly affected by the above risks and uncertainty factors due to its role in the organisation.
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.
ADDTECH AB (PUBL.) INTERIM REPORT 1 APRIL - 30 SEPTEMBER 2021
ADDTECH AB (PUBL.) INTERIM REPORT 1 APRIL - 30 SEPTEMBER 2021
Events after the end of the period
On 1 October, a reorganisation was implemented to adapt the operations and further strengthen the network between the companies. The new organisation still comprises five business areas with clear niche strategies. The first interim report according to the new structure and with changed comparative figures will be for the third quarter.
On 1 October, ABH Stromschienen GmbH ("ABH"), Germany, was acquired to become part of the Electrification (Power Solutions) business area. ABH develops, specifies, and delivers power distribution systems for applications for data centers, industry and e-mobility. The company has 22 employees and sales of approximately EUR 10 million.
On 1 October, Ko Hartog Verkeerstechniek B.V., Netherlands, was acquired to become part of the Energy business area. Ko Hartog Verkeerstechniek B.V. develop, produce and sell traffic signal systems and other traffic safety equipment and offers assembling, installation, service and maintenance of the products. The company has 18 employees and sales of around EUR 8 million.
Preliminary purchase price allocations have not yet been completed.
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 28, 2021
| Kenth Eriksson
Chairman of the Board | Henrik Hedelius
Director | Ulf Mattsson
Director |
| --- | --- | --- |
| Malin Nordesjö
Director | Annikki Schaeferdiek
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 28 October 2021.
Future information
2022-02-08 Interim report 1 April - 31 December 2021
2022-05-17 Year-end report 1 April 2021 - 31 March 2022
2022-07-15 Interim report 1 April - 30 June 2022
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 | 2021/2022 | 2020/2021 | ||||
|---|---|---|---|---|---|---|
| Quarterly data, SEKm | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 |
| Automation | 657 | 657 | 614 | 625 | 562 | 583 |
| Components | 572 | 574 | 534 | 498 | 487 | 496 |
| Energy | 674 | 700 | 593 | 657 | 633 | 683 |
| Industrial Process | 855 | 823 | 729 | 707 | 680 | 669 |
| Power Solutions | 507 | 529 | 462 | 398 | 365 | 381 |
| Group items | -8 | -4 | -5 | -4 | -4 | -7 |
| Addtech Group | 3,257 | 3,279 | 2,927 | 2,881 | 2,723 | 2,805 |
| EBITA by business area | 2021/2022 | 2020/2021 | ||||
| --- | --- | --- | --- | --- | --- | --- |
| Quarterly data, SEKm | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 |
| Automation | 81 | 69 | 77 | 58 | 60 | 50 |
| Components | 73 | 66 | 59 | 37 | 50 | 50 |
| Energy | 90 | 90 | 82 | 87 | 79 | 81 |
| Industrial Process | 121 | 114 | 52 | 86 | 77 | 73 |
| Power Solutions | 69 | 75 | 63 | 50 | 46 | 50 |
| Group items | -9 | -12 | 2 | -14 | -6 | 2 |
| EBITA | 425 | 402 | 335 | 304 | 306 | 306 |
| Depr. of intangible non-current assets | -74 | -70 | -69 | -66 | -64 | -63 |
| - of which acquisitions | -70 | -67 | -64 | -62 | -61 | -60 |
| Operating profit | 351 | 332 | 266 | 238 | 242 | 243 |
| Net sales | 3 months | 6 months | Rolling 12 months | |||
| --- | --- | --- | --- | --- | --- | --- |
| 30 Sep | 30 Sep | 30 Sep | 30 Sep | 30 Sep | 31 Mar | |
| SEKm | 2021 | 2020 | 2021 | 2020 | 2021 | 2021 |
| Automation | 657 | 562 | 1,314 | 1,145 | 2,553 | 2,384 |
| Components | 572 | 487 | 1,146 | 983 | 2,178 | 2,015 |
| Energy | 674 | 633 | 1,374 | 1,316 | 2,624 | 2,566 |
| Industrial Process | 855 | 680 | 1,678 | 1,349 | 3,114 | 2,785 |
| Power Solutions | 507 | 365 | 1,036 | 746 | 1,896 | 1,606 |
| Group items | -8 | -4 | -12 | -11 | -21 | -20 |
| Addtech Group | 3,257 | 2,723 | 6,536 | 5,528 | 12,344 | 11,336 |
| EBITA and EBITA-margin | 3 months | 6 months | ||||
| --- | --- | --- | --- | --- | --- | --- |
| 30 Sep 2021 | 30 Sep 2020 | 30 Sep 2021 | ||||
| SEKm | % | SEKm | % | SEKm | % | |
| Automation | 81 | 12.4 | 60 | 10.8 | 150 | 11.4 |
| Components | 73 | 12.7 | 50 | 10.2 | 139 | 12.1 |
| Energy | 90 | 13.4 | 79 | 12.4 | 180 | 13.1 |
| Industrial Process | 121 | 14.2 | 77 | 11.4 | 235 | 14.0 |
| Power Solutions | 69 | 13.6 | 46 | 12.6 | 144 | 13.9 |
| Group items | -9 | -6 | -21 | |||
| EBITA | 425 | 13.1 | 306 | 11.2 | 827 | 12.7 |
| Depr. of intangible non-current assets | -74 | -64 | -144 | |||
| - of which acquisitions | -70 | -61 | -137 | |||
| Operating profit | 351 | 10.8 | 242 | 8.9 | 683 | 10.4 |
ADDTECH AB (PUBL.) INTERIM REPORT 1 APRIL - 30 SEPTEMBER 2021
DISAGGREGATION OF REVENUE
| Net sales by the subsidiaries | 3 months | ||||||
|---|---|---|---|---|---|---|---|
| geographical location | 30 Sep 2021 | ||||||
| SEKm | Automation | Components | Energy | Industrial Process | Power Solutions | Group items | Addtech Group |
| Sweden | 193 | 221 | 219 | 342 | 244 | -2 | 1,217 |
| Denmark | 157 | 149 | 161 | 108 | 28 | -4 | 599 |
| Finland | 107 | 146 | 62 | 170 | 35 | -1 | 519 |
| Norway | 52 | 46 | 143 | 107 | 33 | -1 | 380 |
| Other Europe | 141 | 6 | 80 | 100 | 134 | 0 | 461 |
| Other countries | 7 | 4 | 9 | 28 | 33 | 0 | 81 |
| Total | 657 | 572 | 674 | 855 | 507 | -8 | 3,257 |
| Net sales by the subsidiaries | 6 months | ||||||
| --- | --- | --- | --- | --- | --- | --- | --- |
| geographical location | 30 Sep 2021 | ||||||
| SEKm | Automation | Components | Energy | Industrial Process | Power Solutions | Group items | Addtech Group |
| Sweden | 397 | 439 | 455 | 651 | 514 | -3 | 2,453 |
| Denmark | 311 | 305 | 336 | 210 | 58 | -6 | 1,214 |
| Finland | 211 | 281 | 119 | 317 | 68 | -1 | 995 |
| Norway | 106 | 99 | 292 | 235 | 62 | -2 | 792 |
| Other Europe | 275 | 13 | 153 | 213 | 271 | 0 | 925 |
| Other countries | 14 | 9 | 19 | 52 | 63 | 0 | 157 |
| Total | 1,314 | 1,146 | 1,374 | 1,678 | 1,036 | -12 | 6,536 |
| Net sales by the subsidiaries | 3 months | ||||||
| --- | --- | --- | --- | --- | --- | --- | --- |
| geographical location | 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 |
| Other 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 | 6 months | ||||||
| --- | --- | --- | --- | --- | --- | --- | --- |
| geographical location | 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 |
| Other 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 |
ADDTECH AB (PUBL.) INTERIM REPORT 1 APRIL - 30 SEPTEMBER 2021
CONSOLIDATED INCOME STATEMENT, CONDENSED
| SEKm | 3 months | 6 months | Rolling 12 months | |||
|---|---|---|---|---|---|---|
| 30 Sep 2021 | 30 Sep 2020 | 30 Sep 2021 | 30 Sep 2020 | 30 Sep 2021 | 31 Mar 2021 | |
| Net sales | 3,257 | 2,723 | 6,536 | 5,528 | 12,344 | 11,336 |
| Cost of sales | -2,238 | -1,904 | -4,513 | -3,863 | -8,513 | -7,863 |
| Gross profit | 1,019 | 819 | 2,023 | 1,665 | 3,831 | 3,473 |
| Selling expenses | -489 | -421 | -990 | -868 | -1,965 | -1,843 |
| Administrative expenses | -188 | -154 | -363 | -304 | -696 | -637 |
| Other operating income and expenses | 9 | -2 | 13 | -8 | 17 | -4 |
| Operating profit | 351 | 242 | 683 | 485 | 1,187 | 989 |
| - as % of net sales | 10.8 | 8.9 | 10.4 | 8.8 | 9.6 | 8.7 |
| Financial income and expenses | -14 | -15 | -28 | -25 | -55 | -52 |
| Profit after financial items | 337 | 227 | 655 | 460 | 1,132 | 937 |
| - as % of net sales | 10.3 | 8.3 | 10.0 | 8.3 | 9.2 | 8.3 |
| Income tax expense | -74 | -46 | -142 | -95 | -255 | -208 |
| Profit for the period | 263 | 181 | 513 | 365 | 877 | 729 |
| Profit for the period attributable to: | ||||||
| Equity holders of the Parent Company | 253 | 176 | 496 | 355 | 847 | 706 |
| Non-controlling interests | 10 | 5 | 17 | 10 | 30 | 23 |
| Earnings per share before dilution, SEK | 0.95 | 0.65 | 1.85 | 1.30 | 3.15 | 2.60 |
| Earnings per share after dilution, SEK | 0.95 | 0.65 | 1.85 | 1.30 | 3.15 | 2.60 |
| Average number of shares after repurchases, '000s | 269,343 | 269,022 | 269,317 | 268,906 | 269,257 | 269,051 |
| Number of shares at end of the period, '000s | 269,343 | 269,022 | 269,343 | 269,022 | 269,343 | 269,275 |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME, CONDENSED
| SEKm | 3 months | 6 months | Rolling 12 months | |||
|---|---|---|---|---|---|---|
| 30 Sep 2021 | 30 Sep 2020 | 30 Sep 2021 | 30 Sep 2020 | 30 Sep 2021 | 31 Mar 2021 | |
| Profit for the period | 263 | 181 | 513 | 365 | 877 | 729 |
| Items that may be reclassified to profit or loss | ||||||
| Cash flow hedges | 3 | -1 | 1 | -2 | 0 | -3 |
| Foreign currency translation differences for the period | 24 | 5 | -50 | -153 | -39 | -142 |
| Items that will not be reclassified to profit or loss | ||||||
| Actuarial effects of the net pension obligation | - | -24 | - | -24 | 39 | 15 |
| Other comprehensive income | 27 | -20 | -49 | -179 | 0 | -130 |
| Total comprehensive income | 290 | 161 | 464 | 186 | 877 | 599 |
| Total comprehensive income attributable to: | ||||||
| Equity holders of the Parent Company | 280 | 157 | 448 | 180 | 848 | 580 |
| Non-controlling interests | 10 | 4 | 16 | 6 | 29 | 19 |
ADDTECH AB (PUBL.) INTERIM REPORT 1 APRIL - 30 SEPTEMBER 2021
CONSOLIDATED BALANCE SHEET, CONDENSED
| SEKm | 30 Sep 2021 | 30 Sep 2020 | 31 Mar 2021 |
|---|---|---|---|
| Goodwill | 3,008 | 2,553 | 2,727 |
| Other intangible non-current assets | 1,915 | 1,725 | 1,769 |
| Property, plant and equipment | 978 | 883 | 1,008 |
| Other non-current assets | 64 | 66 | 60 |
| Total non-current assets | 5,965 | 5,227 | 5,564 |
| Inventories | 2,046 | 1,810 | 1,661 |
| Current receivables | 2,524 | 2,053 | 2,161 |
| Cash and cash equivalents | 479 | 467 | 420 |
| Total current assets | 5,049 | 4,330 | 4,242 |
| Total assets | 11,014 | 9,557 | 9,806 |
| Total equity | 3,563 | 3,028 | 3,450 |
| Interest-bearing provisions | 336 | 359 | 336 |
| Non-interest-bearing provisions | 421 | 375 | 388 |
| Non-current interest-bearing liabilities | 2,560 | 2,326 | 2,056 |
| Non-current non-interest-bearing liabilities | 9 | 2 | 9 |
| Total non-current liabilities | 3,326 | 3,062 | 2,789 |
| Non-interest-bearing provisions | 56 | 64 | 56 |
| Current interest-bearing liabilities | 1,399 | 1,289 | 1,162 |
| Current non-interest-bearing liabilities | 2,670 | 2,114 | 2,349 |
| Total current liabilities | 4,125 | 3,467 | 3,567 |
| Total equity and liabilities | 11,014 | 9,557 | 9,806 |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY, CONDENSED
| SEKm | 30 Sep 2021 | 30 Sep 2020 | 31 Mar 2021 |
|---|---|---|---|
| Opening balance | 3,450 | 3,076 | 3,076 |
| Exercised, issued and repurchased options | -29 | -5 | 25 |
| Dividend, ordinary | -323 | -269 | -269 |
| Dividend, non-controlling interests | -11 | -1 | -4 |
| Change non-controlling interests | 12 | 163 | 158 |
| Option debt, acquisition | - | -122 | -135 |
| Total comprehensive income | 464 | 186 | 599 |
| Closing balance | 3,563 | 3,028 | 3,450 |
ADDTECH AB (PUBL.) INTERIM REPORT 1 APRIL - 30 SEPTEMBER 2021
CONSOLIDATED CASH FLOW STATEMENT, CONDENSED
| SEKm | 3 months | 6 months | Rolling 12 months | |||
|---|---|---|---|---|---|---|
| 30 Sep 2021 | 30 Sep 2020 | 30 Sep 2021 | 30 Sep 2020 | 30 Sep 2021 | 31 Mar 2021 | |
| Profit after financial items | 337 | 227 | 655 | 460 | 1,132 | 937 |
| Adjustment for items not included in cash flow | 142 | 138 | 273 | 267 | 557 | 551 |
| Income tax paid | -88 | -79 | -165 | -139 | -346 | -320 |
| Changes in working capital | -164 | -43 | -328 | -21 | 28 | 335 |
| Cash flow from operating activities | 227 | 243 | 435 | 567 | 1,371 | 1,503 |
| Net investments in non-current assets | -19 | -14 | -30 | -29 | -80 | -79 |
| Acquisitions and disposals | -331 | -158 | -592 | -888 | -923 | -1,219 |
| Cash flow from investing activities | -350 | -172 | -622 | -917 | -1,003 | -1,298 |
| Dividend paid to shareholders | -323 | -269 | -323 | -269 | -323 | -269 |
| Repurchase of own shares/change of options | -33 | -22 | -29 | -5 | 1 | 25 |
| Other financing activities | 435 | 236 | 613 | 749 | -30 | 106 |
| Cash flow from financing activities | 79 | -55 | 261 | 475 | -352 | -138 |
| Cash flow for the period | -44 | 16 | 74 | 125 | 16 | 67 |
| Cash and cash equivalents at beginning of period | 524 | 453 | 420 | 363 | 467 | 363 |
| Exchange differences on cash and cash equivalents | -1 | -2 | -15 | -21 | -4 | -10 |
| Cash and cash equivalents at end of period | 479 | 467 | 479 | 467 | 479 | 420 |
FAIR VALUES ON FINANCIAL INSTRUMENTS
| SEKm | 30 Sep 2021 | 31 Mar 2021 | ||||
|---|---|---|---|---|---|---|
| Carrying amount | Level 2 | Level 3 | Carrying amount | Level 2 | Level 3 | |
| Derivatives - fair value, hedge instruments | 2 | 2 | - | 2 | 2 | - |
| Derivatives - fair value through profit | 2 | 2 | - | 2 | 2 | - |
| Total financial assets at fair value per level | 4 | 4 | - | 4 | 4 | - |
| Derivatives - fair value, hedge instruments | 1 | 1 | - | 3 | 3 | - |
| Derivatives - fair value through profit | 4 | 4 | - | 4 | 4 | - |
| Contingent considerations - fair value through profit | 310 | - | 310 | 267 | - | 267 |
| Total financial liabilities at fair value per level | 315 | 5 | 310 | 274 | 7 | 267 |
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 2021 | 31 Mar 2021 |
|---|---|---|
| Opening balance | 267 | 151 |
| Acquisitions during the year | 96 | 170 |
| Reversed through profit or loss | 4 | 9 |
| Consideration paid | -60 | -64 |
| Interest expenses | 5 | 9 |
| Exchange differences | -2 | -8 |
| Closing balance | 310 | 267 |
ADDTECH AB (PUBL.) INTERIM REPORT 1 APRIL - 30 SEPTEMBER 2021
KEY FINANCIAL INDICATORS
| 12 months ending | |||||
|---|---|---|---|---|---|
| 30 Sep 2021 | 31 Mar 2021 | 30 Sep 2020 | 31 Mar 2020 | 31 Mar 2019 | |
| Net sales, SEKm | 12,344 | 11,336 | 11,412 | 11,735 | 10,148 |
| EBITDA, SEKm | 1,727 | 1,501 | 1,489 | 1,579 | 1,137 |
| EBITA, SEKm | 1,466 | 1,251 | 1,255 | 1,364 | 1,085 |
| EBITA-margin, % | 11.9 | 11.0 | 11.0 | 11.6 | 10.7 |
| Operating profit, SEKm | 1,187 | 989 | 1,025 | 1,161 | 910 |
| Operating margin, % | 9.6 | 8.7 | 9.0 | 9.9 | 9.0 |
| Profit after financial items, SEKm | 1,132 | 937 | 972 | 1,105 | 865 |
| Profit for the period, SEKm | 877 | 729 | 772 | 873 | 672 |
| Working capital | 2,415 | 2,416 | 2,468 | 2,415 | 2,029 |
| Return on working capital (P/WC), % | 61 | 52 | 51 | 56 | 53 |
| Return on equity, % | 26 | 23 | 26 | 32 | 29 |
| Return on capital employed, % | 17 | 15 | 17 | 21 | 21 |
| Equity ratio, % | 32 | 35 | 32 | 36 | 36 |
| Financial net debt, SEKm | 3,816 | 3,134 | 3,507 | 2,585 | 1,960 |
| Debt / equity ratio, multiple | 1.1 | 0.9 | 1.2 | 0.8 | 0.8 |
| Financial net debt / EBITDA, multiple | 2.2 | 2.1 | 2.4 | 1.6 | 1.7 |
| Net debt excl. pensions, SEKm | 3,480 | 2,798 | 3,148 | 2,253 | 1,700 |
| Net debt, excl pensions / equity ratio, multiple | 1.0 | 0.8 | 1.0 | 0.7 | 0.7 |
| Interest coverage ratio, multiple | 18.5 | 15.8 | 16.9 | 20.5 | 22.1 |
| Average number of employees | 3,174 | 3,068 | 2,990 | 2,913 | 2,590 |
| Number of employees at end of the period | 3,319 | 3,133 | 3,090 | 2,981 | 2,759 |
KEY FINANCIAL INDICATORS PER SHARE
| SEK | 12 months ending | ||||
|---|---|---|---|---|---|
| 30 Sep 2021 | 31 Mar 2021 | 30 Sep 2020 | 31 Mar 2020 | 31 Mar 2019 | |
| Earnings per share before dilution | 3.15 | 2.60 | 2.80 | 3.20 | 2.45 |
| Earnings per share after dilution | 3.15 | 2.60 | 2.80 | 3.20 | 2.45 |
| Cash flow from operating activities per share | 5.10 | 5.60 | 4.35 | 4.15 | 1.95 |
| Shareholders' equity per share | 12.30 | 11.95 | 10.40 | 11.25 | 9.20 |
| Share price at the end of the period | 156.00 | 130.00 | 117.60 | 61.13 | 48.25 |
| Average number of shares after repurchases, '000s | 269,257 | 269,051 | 268,649 | 268,493 | 268,187 |
| Average number of shares adjusted for repurchases and dilution, '000s | 269,970 | 269,969 | 269,184 | 269,200 | 268,755 |
| Number of shares outstanding at end of the period, '000s | 269,343 | 269,275 | 269,022 | 268,594 | 268,228 |
For definitions of key financial indicators, see page 17-19
ADDTECH AB (PUBL.) INTERIM REPORT 1 APRIL - 30 SEPTEMBER 2021
PARENT COMPANY INCOME STATEMENT
| SEKm | 3 months | 6 months | Rolling 12 months | |||
|---|---|---|---|---|---|---|
| 30 Sep 2021 | 30 Sep 2020 | 30 Sep 2021 | 30 Sep 2020 | 30 Sep 2021 | 31 Mar 2021 | |
| Net sales | 16 | 18 | 32 | 36 | 54 | 58 |
| Administrative expenses | -23 | -18 | -46 | -34 | -85 | -73 |
| Operating profit/loss | -7 | 0 | -14 | 2 | -31 | -15 |
| Interest income and expenses and similar items | 1 | -5 | 3 | -3 | 399 | 393 |
| Profit after financial items | -6 | -5 | -11 | -1 | 368 | 378 |
| Appropriations | - | - | - | - | 260 | 260 |
| Profit before taxes | -6 | -5 | -11 | -1 | 628 | 638 |
| Income tax expense | 1 | 1 | 2 | 0 | -50 | -52 |
| Profit for the period | -5 | -4 | -9 | -1 | 578 | 586 |
| Total comprehensive income | -5 | -4 | -9 | -1 | 578 | 586 |
PARENT COMPANY BALANCE SHEET
| SEKm | 30 Sep 2021 | 30 Sep 2020 | 31 Mar 2021 |
|---|---|---|---|
| Intangible non-current assets | 1 | 1 | 1 |
| Property, plant and equipment | 0 | 0 | 0 |
| Non-current financial assets | 4,786 | 3,677 | 4,243 |
| Total non-current assets | 4,787 | 3,678 | 4,244 |
| Current receivables | 890 | 441 | 819 |
| Cash and bank balances | 9 | - | - |
| Total current assets | 899 | 441 | 819 |
| Total assets | 5,686 | 4,119 | 5,063 |
| Restricted equity | 69 | 69 | 69 |
| Unrestricted equity | 417 | 161 | 779 |
| Total equity | 486 | 230 | 848 |
| Untaxed reserves | 211 | 131 | 211 |
| Provisions | 13 | 14 | 14 |
| Non-current liabilities | 2,089 | 1,919 | 1,618 |
| Current liabilities | 2,887 | 1,825 | 2,372 |
| Total equity and liabilities | 5,686 | 4,119 | 5,063 |
ADDTECH AB (PUBL.) INTERIM REPORT 1 APRIL - 30 SEPTEMBER 2021
DEFINITIONS
Return on equity¹²
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, see the reconciliation table on page 20.
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
Financial income minus financial 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 2021
ADDTECH AB (PUBL.) INTERIM REPORT 1 APRIL - 30 SEPTEMBER 2021
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 ratio¹²
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 by 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 expenses and bank charges divided by interest expenses and bank charges.
This performance indicator measures the Group's capacity through its business operations and financial income to generate a sufficiently large surplus to cover its financial 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 out by 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 2021
RECONCILIATION TABLES ALTERNATIVE PERFORMANCE MEASURES
| EBITA and EBITDA | 12 months ending | ||||
|---|---|---|---|---|---|
| Addtech Group, SEKm | 30 Sep 2021 | 31 Mar 2021 | 30 Sep 2020 | 31 Mar 2020 | 31 Mar 2019 |
| Operating profit according to Interim report | 1,187 | 989 | 1,025 | 1,161 | 910 |
| Amortization, intangible assets (+) | 279 | 262 | 230 | 203 | 175 |
| EBITA | 1,466 | 1,251 | 1,255 | 1,364 | 1,085 |
| Depreciation, tangible assets (+) | 261 | 250 | 234 | 215 | 52 |
| EBITDA | 1,727 | 1,501 | 1,489 | 1,579 | 1,137 |
| Working capital and return on working capital (P/WC) | 12 months ending | ||||
| --- | --- | --- | --- | --- | --- |
| Addtech Group, SEKm | 30 Sep 2021 | 31 Mar 2021 | 30 Sep 2020 | 31 Mar 2020 | 31 Mar 2019 |
| EBITA (12 months rolling) | 1,466 | 1,251 | 1,255 | 1,364 | 1,085 |
| Inventory, yearly average (+) | 1,797 | 1,722 | 1,681 | 1,594 | 1,304 |
| Accounts receivables, yearly average (+) | 1,843 | 1,756 | 1,819 | 1,854 | 1,542 |
| Accounts payables, yearly average (-) | 1,225 | 1,062 | 1,032 | 1,033 | 817 |
| Working capital (average) | 2,415 | 2,416 | 2,468 | 2,415 | 2,029 |
| Return on working capital (R/RK) (%) | 61% | 52% | 51% | 56% | 53% |
| Acquired- and organic growth | |||||
| --- | --- | --- | --- | --- | --- |
| 3 months | 6 months | ||||
| Addtech Group | 30 Sep 2021 | 30 Sep 2020 | 30 Sep 2021 | 30 Sep 2020 | |
| Acquired growth (SEKm,%) | 264 | (10%) | 173 | (6%) | 489 |
| Organic growth (SEKm,%) | 284 | (10%) | -286 | (-10%) | 597 |
| Divestments (SEKm,%) | -3 | (0%) | -1 | (0%) | -6 |
| Exchange rate effect (SEKm,%) | -11 | (0%) | -80 | (-3%) | -72 |
| Total growth (SEKm,%) | 534 | (20%) | -194 | (-7%) | 1,008 |
| Interest coverage ratio | 12 months ending | ||||
| --- | --- | --- | --- | --- | --- |
| Addtech Group | 30 Sep 2021 | 31 Mar 2021 | 30 Sep 2020 | 31 Mar 2020 | 31 Mar 2019 |
| Profit after financial items, SEKm | 1,132 | 937 | 972 | 1,105 | 865 |
| Interest expenses and bank charges (+), SEKm | 65 | 63 | 61 | 57 | 41 |
| Total | 1,197 | 1,000 | 1,033 | 1,162 | 906 |
| Interest coverage ratio, multiple | 18.5 | 15.8 | 16.9 | 20.5 | 22.1 |
| Net debt excl. pensions and net debt, excl pensions/equity ratio | |||||
| --- | --- | --- | --- | --- | --- |
| 12 months ending | |||||
| Addtech Group | 30 Sep 2021 | 31 Mar 2021 | 30 Sep 2020 | 31 Mar 2020 | 31 Mar 2019 |
| Financial net debt, SEKm | 3,816 | 3,134 | 3,507 | 2,585 | 1,960 |
| Pensions (-), SEKm | -336 | -336 | -359 | -332 | -260 |
| Net debt excluding pensions | 3,480 | 2,798 | 3,148 | 2,253 | 1,700 |
| Equity, SEKm | 3,563 | 3,450 | 3,028 | 3,076 | 2,520 |
| Net debt to Equity ratio (excluding pensions), multiple | 1.0 | 0.8 | 1.0 | 0.7 | 0.7 |
| Capital employed and return on capital employed | 12 months ending | ||||
| --- | --- | --- | --- | --- | --- |
| Addtech Group, SEKm | 30 Sep 2021 | 31 Mar 2021 | 30 Sep 2020 | 31 Mar 2020 | 31 Mar 2019 |
| Profit after financial items | 1,132 | 937 | 972 | 1,105 | 865 |
| Financial expenses (+) | 111 | 93 | 85 | 79 | 62 |
| Profit after financial items plus financial expenses | 1,243 | 1,030 | 1,057 | 1,184 | 927 |
| Total assets, yearly average (+) | 10,036 | 9,309 | 8,709 | 7,926 | 6,324 |
| Non-interest-bearing liabilities, yearly average (-) | -2,362 | -2,153 | -2,039 | -1,947 | -1,604 |
| Non-interest-bearing provisions, yearly average (-) | -448 | -413 | -390 | -379 | -378 |
| Capital employed | 7,226 | 6,743 | 6,280 | 5,600 | 4,342 |
| Return on capital employed, % | 17% | 15% | 17% | 21% | 21% |
ADDTECH AB (PUBL.) INTERIM REPORT 1 APRIL - 30 SEPTEMBER 2021
Leading technical solutions for a sustainable future
This is Addtech
Addtech is a Swedish, listed technical solutions 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 140 companies in 20 countries, and have a long history of sustainable, profitable growth.
Our vision
We are to be the leader in value-creating technical solutions for a sustainable tomorrow, 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 140 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
ADDTECH AB (PUBL.) INTERIM REPORT 1 APRIL - 30 SEPTEMBER 2021