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Addtech AB Interim / Quarterly Report 2023
7327_10-q_2023-02-02_139a3452-82ac-442e-ae44-93c3bb8835d0.pdf
Interim / Quarterly Report
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ADDTECH
INTERIM REPORT 1 APRIL - 31 DECEMBER 2022
THIRD QUARTER (1 OCTOBER - 31 DECEMBER 2022)
- Net sales increased by 30 percent and amounted to SEK 4,653 million (3,586).
- Operating profit before amortisation of intangible non-current assets (EBITA) increased by 37 percent and amounted to SEK 630 million (459) corresponding to an EBITA margin of 13.5 percent (12.8).
- Operating profit increased by 40 percent and amounted to SEK 536 million (382) corresponding to an operating margin of 11.5 percent (10.7).
- Profit after tax increased by 39 percent and amounted to SEK 387 million (279) and earnings per share before/after dilution amounted to SEK 1.40 (0.95).
PERIOD (1 APRIL - 31 DECEMBER 2022)
- Net sales increased by 33 percent and amounted to SEK 13,447 million (10,122).
- Operating profit before amortisation of intangible non-current assets (EBITA) increased by 39 percent and amounted to SEK 1,782 million (1,286) corresponding to an EBITA margin of 13.3 percent (12.7).
- Operating profit increased by 41 percent and amounted to SEK 1,507 million (1,065) corresponding to an operating margin of 11.2 percent (10.5).
- Profit after tax increased by 38 percent and amounted to SEK 1,093 million (792) and earnings per share before/after dilution amounted to SEK 3.90 (2.80). For the latest twelve month period earnings per share before dilution amounted to SEK 5.10 (3.45) and after dilution to SEK 5.05 (3.45).
- Return on working capital (P/WC) amounted to 65 percent (66).
- Return on equity amounted to 31 percent (28) and the equity ratio amounted to 35 percent (35).
- Cash flow from operating activities amounted to SEK 1,100 million (805). For the latest twelve month period, cash flow per share from operating activities amounted to SEK 5.25 (4.65).
- Since the start of the financial year ten acquisitions have been completed, of which two after the end of the period, with total annual sales of about SEK 850 million.
| Group Summary | 3 months | 9 months | Rolling 12 months | |||||
|---|---|---|---|---|---|---|---|---|
| SEKm | 31 Dec 2022 | 31 Dec 2021 | Δ | 31 Dec 2022 | 31 Dec 2021 | Δ | 31 Dec 2022 | 31 Mar 2022 |
| Net sales | 4,653 | 3,586 | 30% | 13,447 | 10,122 | 33% | 17,363 | 14,038 |
| EBITA | 630 | 459 | 37% | 1,782 | 1,286 | 39% | 2,299 | 1,803 |
| EBITA-margin % | 13.5 | 12.8 | 13.3 | 12.7 | 13.2 | 12.8 | ||
| Profit after financial items | 492 | 364 | 35% | 1,394 | 1,019 | 37% | 1,808 | 1,433 |
| Profit for the period | 387 | 279 | 39% | 1,093 | 792 | 38% | 1,418 | 1,117 |
| Earnings per share before dilution, SEK | 1.40 | 0.95 | 3.90 | 2.80 | 5.10 | 4.00 | ||
| Earnings per share after dilution, SEK | 1.40 | 0.95 | 3.90 | 2.80 | 5.05 | 3.95 | ||
| Cash flow from operating activities per share, SEK | - | - | - | - | 5.25 | 4.15 | ||
| Return on equity, % | 31 | 28 | 31 | 28 | 31 | 30 | ||
| Equity ratio, % | 35 | 35 | 35 | 35 | 35 | 34 |
Comparisons in parentheses refer to the corresponding period of the previous year, unless stated otherwise.
ADDTECH AB (PUBL.) INTERIM REPORT 1 APRIL - 31 DECEMBER 2022
CEO'S COMMENTS
THIRD QUARTER – STRONG BUSINESS SITUATION ACROSS THE BOARD
Our strong position in strategically selected segments continued to generate strong growth in the quarter. With a high level of customer activity and a favourable order situation in all business areas, sales increased by 30 percent against tough comparisons, of which 14 percent organic. Despite continued high inflationary pressure, we defended our margins in the quarter. EBITA increased by 37 percent with an EBITA margin of 13.5 percent.
MARKET TREND
In most segments and geographies, the business situation remained strong in the third quarter. The willingness to invest in infrastructure products for national and regional grids continued to strengthen from already high levels. The market situation for input components for manufacturing companies of special vehicles and in the medical- and mechanical industries was favourable, while demand for larger new projects in the forest industry decreased. Demand for electricity-related products for building and installation customers, as well as for products and solutions for the defence industry increased during the quarter. From a geographical perspective, the underlying market situation was positive in all of the Nordic countries, with our units in Norway experiencing the strongest development. Even for our companies operating in our principal markets outside the Nordic region, DACH and the UK, the business situation was strong during the quarter in general terms.
Cash flow from operating activities strengthened over the quarter as a result of continued earnings growth. Our long-term financial target, P/WC, remains at high levels, although inventory increased over the quarter, primarily driven by the continued high demand.
ACQUISITIONS
Our international expansion continues. During the third quarter, AVS was acquired in the Netherlands – a niche supplier of engineered high-end valves, steam attemperators and valve systems, primarily for the power generation industry. Two further acquisitions were completed after the end of the quarter – MCS in the Netherlands, which offers cutting-edge expertise in the rapidly growing segment of industrial IoT wireless connectivity, and Drivhuset, a leading supplier of frequency converters, primarily in the Swedish market. To date during the financial year, a total of ten acquisitions have been completed, representing total annual sales of about SEK 850 million and adding some 250 new employees.
The acquisitions market remains highly active and our pipeline of high-performing acquisition candidates, both in the Nordics and selected geographic markets, remains well-filled. Addtech's relationship-based acquisition process, combined with our financial strength, means that we will be able to continue generating growth through carefully selected acquisitions.
OUTLOOK
The strong demand continued in the quarter and we currently see very few signs of a slowdown in customer activities. We have a substantial order backlog of favourable quality and this was further strengthened during the quarter. We nonetheless remain humble in the face of external uncertainties and are monitoring developments very closely.
Our well-proven business model, with entrepreneur-led and strictly decentralised companies accustomed to quickly adapting to challenges while capturing opportunities, has equipped us well for the future. Combined with strong positions in segments with underlying structural growth, where the driving forces are generally linked to global mega-trends, this means we enjoy favourable conditions to continue generating value.
To further clarify our ambitious sustainability aims, and increase the focus on reducing our climate impact, we signed the Science Based Targets initiative at the end of the third quarter. I am convinced that this commitment will further strengthen our operations, adding significant value for our customers and other stakeholders.
I would like to extend my heartfelt thanks to all of my colleagues for their fantastic efforts over the past quarter.
Niklas Stenberg
President and CEO
ADDTECH AB (PUBL.) INTERIM REPORT 1 APRIL – 31 DECEMBER 2022
GROUP DEVELOPMENT
Sales development
Net sales in the Addtech Group increased in the third quarter by 30 percent to SEK 4,653 million (3,586). The organic growth amounted to 14 percent and acquired growth amounted to 11 percent. Exchange rate changes affect net sales positively with 5 percent, corresponding to SEK 175 million.
Net sales in the Addtech Group during the period increased by 33 percent to SEK 13,447 million (10,122). The organic growth amounted to 17 percent and acquired growth amounted to 12 percent. Exchange rate changes affect net sales positively with 4 percent, corresponding to SEK 408 million.
Profit development
EBITA in the third quarter amounted to SEK 630 million (459), representing an increase of 37 percent. Operating profit increased during the quarter by 40 percent to SEK 536 million (382) and the operating margin amounted to 11.5 percent (10.7). Net financial items amounted to SEK -44 million (-18) and profit after financial items increased by 35 percent to SEK 492 million (364).
Profit after tax increased by 39 percent to SEK 387 million (279) corresponding to earnings per share before/after dilution of SEK 1.40 (0.95).
EBITA for the period amounted to SEK 1,782 million (1,286), representing an increase of 39 percent. Operating profit increased during the period by 41 percent to SEK 1,507 million (1,065) and the operating margin amounted to 11.2 percent (10.5). Net financial items were SEK -113 million (-46) and profit after financial items increased by 37 percent to SEK 1,394 million (1,019).
Profit after tax for the period increased by 38 percent to SEK 1,093 million (792) and the effective tax rate amounted to 22 percent (22). Earnings per share before/after dilution for the period amounted to SEK 3.90 (2.80). For the latest twelve month period, earnings per share before dilution amounted to SEK 5.10 (3.45) and after dilution to SEK 5.05 (3.45).
ADDTECH AB (PUBL.) INTERIM REPORT 1 APRIL - 31 DECEMBER 2022
DEVELOPMENT IN THE BUSINESS AREAS
AUTOMATION
Net sales in Automation increased in the third quarter by 27 percent to SEK 877 million (691) and EBITA increased by 38 percent to SEK 105 million (76). Net sales during the period increased by 30 percent to SEK 2,448 million (1,888) and EBITA increased by 47 percent to SEK 301 million (205).
Market
The business situation was highly favourable for the Automation business area as a whole in the third quarter and demand was stable. The sales trend was favourable in all segments of importance for the business area, such as the process industry, mechanical industry and medical technology, and demand increased for the companies operating in the defence industry. The revaluation of contingent purchase considerations affected profit for the quarter positively by about SEK 4 million.
ELECTRIFICATION
Net sales in Electrification increased in the third quarter by 48 percent to SEK 1,001 million (677) and EBITA increased by 61 percent to SEK 118 million (73). Net sales during the period increased by 52 percent to SEK 2,888 million (1,897) and EBITA increased by 56 percent to SEK 358 million (229).
Market
The Electrification business area experienced a strong third quarter with stable demand and a favourable business position. The companies operating in electronics, special vehicles and defence experienced the strongest development, and the market situation was stable in medical technology, energy, telecoms, as well as for specially adapted battery modules.
ENERGY
Net sales in Energy increased in the third quarter by 38 percent to SEK 1,267 million (918) and EBITA increased by 49 percent to SEK 169 million (114). Net sales during the period increased by 37 percent to SEK 3,774 million (2,750) and EBITA increased by 42 percent to SEK 484 million (342).
Market
The business situation for the Energy business area was highly favourable in the third quarter. Demand for, and sales of, infrastructure products for rebuilding and expanding national and regional grids was very good. The market situation was very strong for the units active in building and installation, as well as in the expansion of fiber optic networks and the manufacturing industry, while sales of niche products for electric power distribution were good and sales in wind power were somewhat weaker. The revaluation of contingent purchase considerations affected profit for the quarter positively by about SEK 12 million.
INDUSTRIAL SOLUTIONS
Net sales in Industrial Solutions increased in the third quarter by 11 percent to SEK 802 million (722) and EBITA increased by 12 percent to SEK 148 million (133). Net sales during the period increased by 18 percent to SEK 2,299 million (1,949) and EBITA increased by 21 percent to SEK 395 million (327).
Market
For the Industrial Solutions business area as a whole, the business position was favourable given very demanding comparison figures. For the companies exposed to the forestry and sawmill industry, sales were stable at a high level. Demand for larger projects decreased during the quarter, while the order backlog remains at a very good level. The market situation was stable for companies active in special vehicles and the mechanical industry, while it developed positively in waste and recycling. The revaluation of contingent purchase considerations affected profit for the quarter positively by about SEK 3 million.
PROCESS TECHNOLOGY
Net sales in Process Technology increased in the third quarter by 22 percent to SEK 713 million (585) and EBITA increased by 27 percent to SEK 94 million (74). Net sales during the period increased by 24 percent to SEK 2,057 million (1,657) and EBITA increased by 26 percent to SEK 272 million (215).
Market
For the Process Technology business area as a whole, the market situation was favourable in the third quarter. The business situation was particularly favourable for the companies active in the marine, special vehicles and energy segments. Demand was stable for components for aftermarket and service, as well as for the medical technology segment, the mechanical industry and the forest and process industry.
ADDTECH AB (PUBL.) INTERIM REPORT 1 APRIL - 31 DECEMBER 2022
OTHER FINANCIAL INFORMATION
Profitability, financial position and cash flow
The return on equity at the end of the period was 31 percent (28), and return on capital employed was 21 percent (19). Return on working capital P/WC (EBITA in relation to working capital) amounted to 65 percent (66).
At the end of the period the equity ratio amounted to 35 percent (35). Equity per share, excluding non-controlling interest, totalled SEK 17.70 (13.65). The Group's net debt at the end of the period amounted to SEK 4,586 million (3,299), excluding pension liabilities of SEK 264 million (344). The net debt/equity ratio, calculated on the basis of net debt excluding provisions for pensions amounted to 0.9 (0.8).
Cash and cash equivalents consisting of cash and bank equivalents and approved but non-utilised credit facilities amounted to SEK 1,622 million (1,654) at 31 December 2022.
Cash flow from operating activities amounted to SEK 1,100 million (805) during the period. Company acquisitions and disposals including settlement of contingent consideration regarding acquisitions implemented in previous years amounted to SEK 1,135 million (711). Investments in non-current assets totalled SEK 100 million (72) and disposal of non-current assets amounted to SEK 5 million (7). Repurchase of treasury shares amounted to SEK 31 million (0) and repurchase of call options amounted to SEK 58 million (37). Exercised and issued call options totalled SEK 41 million (40). Dividend paid to the shareholders of the Parent Company totalled SEK 485 million (323), corresponding to SEK 1.80 (1.20) per share. The dividend was paid out in the second quarter.
Employees
At the end of the period, the number of employees was 3,861 compared to 3,556 at the beginning of the financial year. During the period, completed acquisitions resulted in an increase of the number of employees by 224. The average number of employees in the latest twelve month period was 3,663.
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 | -3,229,272 | 1.2% | 0.8% | |
| Total number of shares after repurchases | 269,564,712 |
Addtech has four outstanding call option programmes for a total of 2,610,980 shares. Call options issued on repurchased shares entail a dilution effect of about 0.1 percent during the latest twelve 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 |
|---|---|---|---|---|---|---|
| 2022/2026 | 825,910 | 825,910 | 0.3% | 180.10 | 180.10 | 8 Sep 2025 - 10 Jun 2026 |
| 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 | 4,250 | 17,000 | 0.0% | 321.80 | 80.45 | 5 Sep 2022 - 2 Jun 2023 |
| Total | 1,848,230 | 2,610,980 |
ADDTECH AB (PUBL.) INTERIM REPORT 1 APRIL - 31 DECEMBER 2022
Acquisitions and disposals
During the period, 1 April to 30 September 2022 the following acquisitions were completed; Intertrafo Oy, Finland, Arruti Group, Spain, and Allied Insulators Ltd., Great Britain, was acquired to become part of the Energy business area. Electric Control Systems Automation AS, Norway, C.K. Environment A/S, Denmark, and Gotapack International AB, Sweden, was acquired to become part of the Process Technology business area. Impulseradar Sweden AB, Sweden, was acquired to become part of the Industrial Solutions business area.
On 1 December, Advanced Valve Solutions B.V., Netherlands, was acquired to become part of the Process Technology business area. AVS is a niche provider of engineered high-end valves, steam attemperators and valve systems mainly to the power generation industry. The company has 27 employees and sales of around EUR 13 million.
The purchase price allocation calculations for the acquisitions completed during the period 1 April - 31 December 2021 have now been finalised. No significant adjustments have been made to the calculations. Acquisitions completed as of the 2021/2022 financial year are distributed among the Group's business areas as follows:
| Acquisitions 2021/2022 | Closing | Acquired share, % | Net sales, SEKm* | Number of employees* | Business Area |
|---|---|---|---|---|---|
| ESi Controls Ltd., Great Britain | April, 2021 | 100 | 95 | 15 | Energy |
| Hydro-Material Oy, Finland | April, 2021 | 100 | 50 | 5 | Industrial Solutions |
| IETV Elektroteknik AB, Sweden | May, 2021 | 100 | 80 | 38 | Energy |
| AVT Industriteknik AB, Sweden | May, 2021 | 100 | 70 | 42 | Automation |
| EK Power Solutions AB, Sweden | July, 2021 | 100 | 40 | 25 | Electrification |
| KZ moder AB, Sweden | July, 2021 | 100 | 100 | 29 | Process Technology |
| Finnchain Oy, Finland | July, 2021 | 90 | 70 | 20 | Process Technology |
| Tritech Solutions AB, Sweden | August, 2021 | 100 | 60 | 8 | Automation |
| Systerra Computer GmbH, Germany | September, 2021 | 100 | 95 | 16 | Automation |
| ABH Stromschienen GmbH, Germany | October, 2021 | 100 | 100 | 22 | Electrification |
| Ko Hartog Verkeerstechniek B.V., Netherlands | October, 2021 | 100 | 80 | 18 | Energy |
| Jolex AB, Sweden | November, 2021 | 100 | 20 | 1 | Electrification |
| Fey Elektronik GmbH, Germany | March, 2022 | 90 | 570 | 160 | Electrification |
| Acquisitions 2022/2023 | Closing | Acquired share, % | Net sales, SEKm* | Number of employees* | Business Area |
| --- | --- | --- | --- | --- | --- |
| Intertrafo Oy, Finland | April, 2022 | 100 | 30 | 15 | Energy |
| Electric Control Systems Automation AS, Norway | April, 2022 | 100 | 75 | 31 | Process Technology |
| Impulseradar Sweden AB, Sweden | April, 2022 | 88 | 80 | 27 | Industrial Solutions |
| C.K. Environment A/S, Denmark | May, 2022 | 100 | 40 | 14 | Process Technology |
| Arruti Group, Spain | June, 2022 | 100 | 280 | 90 | Energy |
| Gotapack International AB, Sweden | July, 2022 | 100 | 25 | 5 | Process Technology |
| Allied Insulators Ltd., Great Britain | August, 2022 | 100 | 75 | 15 | Energy |
| Advanced Valve Solutions B.V., Netherlands | December, 2022 | 100 | 140 | 27 | Process Technology |
| MCS Europe Group B.V., Netherlands | January, 2023 | 100 | 75 | 19 | Automation |
| Drivhuset AB, Sweden | January, 2023 | 100 | 35 | 7 | Industrial Solutions |
- Refers to assessed condition at the time of acquisition on a full-year basis.
ADDTECH AB (PUBL.) INTERIM REPORT 1 APRIL - 31 DECEMBER 2022
If all acquisitions which have taken effect during the period had been completed on 1 April 2022, their impact would have been an estimated SEK 640 million on Group net sales, about SEK 75 million on operating profit and about SEK 54 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 140 million. The contingent purchase considerations fall due for payment within three years and the outcome is subject to a maximum of SEK 175 million.
Transaction costs for acquisitions that resulted in an ownership transfer during the period, amounted to SEK 8 million (9) and are reported under Selling expenses.
Revaluation of contingent consideration had a positive net effect of SEK 23 million (5) 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:
| Fair value
SEKm | 31 Dec 2022 | 31 Dec 2021 |
| --- | --- | --- |
| Intangible non-current assets | 491 | 367 |
| Other non-current assets | 36 | 18 |
| Inventories | 143 | 139 |
| Other current assets | 342 | 301 |
| Deferred tax liability/tax asset | -111 | -84 |
| Other liabilities | -148 | -203 |
| Acquired net assets | 753 | 538 |
| Goodwill 1) | 485 | 363 |
| Non-controlling interests 2) | -28 | -10 |
| Consideration 3) | 1,210 | 891 |
| Less: cash and cash equivalents in acquired businesses | -128 | -138 |
| Less: consideration not yet paid | -140 | -125 |
| Effect on the Group’s cash and cash equivalents | 942 | 628 |
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 transaction costs for the acquisitions.
Parent Company
Parent Company net sales amounted to SEK 62 million (48) and profit after financial items was SEK -64 million (-21). Net investments in non-current assets were SEK 0 million (1). The Parent Company's financial net debt was SEK 595 million (323) at the end of the period.
ADDTECH AB (PUBL.) INTERIM REPORT 1 APRIL - 31 DECEMBER 2022
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. There are no new IFRS or IFRIC pronouncements endorsed by the EU that are applicable for Addtech or that have a significant impact on the Group's result of operations and position in 2022/2023.
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 18-21.
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.
Addtech has limited direct exposure to the countries involved in the conflict in Ukraine. One of our subsidiaries has a minor business in Russia where work is currently underway according to an orderly decommissioning plan. Addtech assess also the indirect effects as limited for the time being. Addtech is closely monitoring developments in the conflict and currently finds it difficult to assess the future effect of sanctions against Russia and the implications that the conflict could have on the economic situation in Europe.
Please see section Risks and uncertainties (page 56-58) in the annual report for 2021/2022 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 or the parent company's position and its 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.
Nomination committee
The 2022 Annual General Meeting authorised the Board Chairman to establish a nomination committee for upcoming elections to the Board, by appointing members among representatives of the five shareholders who controlled the largest number of votes in the Company at 31 December 2022, to serve on the nomination committee. In accordance with the above, the committee comprises these appointed members: Anders Börjesson (appointed by Tisenhult Invest AB), Henrik Hedelius (appointed by Tom Hedelius), Marianne Nilsson (appointed by Swedbank Robur Fonder), Leif Almhorn (appointed by SEB Investment Management) and Per Trygg (appointed by Lannebo Fonder). Information on how to contact the committee is available on the Addtech website.
ADDTECH AB (PUBL.) INTERIM REPORT 1 APRIL - 31 DECEMBER 2022
ADDTECH AB (PUBL.) INTERIM REPORT 1 APRIL – 31 DECEMBER 2022
Events after the end of the period
On 2 January, MCS Europe Group B.V., Netherlands, was acquired to become part of the Automation business area. MCS is a leading supplier of products and services for Industrial mobile networks and Industrial IoT in the Netherlands and Belgium. The company has 19 employees and sales of around EUR 7 million.
On 10 January, Drivhuset AB, Sweden, was acquired to become part of the Industrial Solutions business area. Drivhuset is a leading supplier of frequency converters on the Swedish market. The company also offers other critical components for electric drive systems such as motor controls and soft starters. The company has 7 employees and sales of around SEK 35 million.
Stockholm February 2, 2023
Niklas Stenberg
President and CEO
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. The information was submitted for publication, through the agency of the contact persons set out below, at 8.15 a.m CET on 2 February 2023.
Future information
2023-05-17 Year-end report 1 April 2022 - 31 March 2023
2023-07-14 Interim report 1 April - 30 June 2023
2023-08-23 Annual General Meeting 2023 will be held at IVA, Grev Turegatan 16, Stockholm at 2.00 p.m
The Group's annual report for 2022/2023 will be published on Addtech's website in July 2023.
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 Quarterly data, SEKm | 2022/2023 | 2021/2022 | |||||
|---|---|---|---|---|---|---|---|
| Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |
| Automation | 877 | 810 | 761 | 828 | 691 | 604 | 593 |
| Electrification | 1,001 | 958 | 929 | 732 | 677 | 618 | 602 |
| Energy | 1,267 | 1,256 | 1,251 | 992 | 918 | 895 | 937 |
| Industrial Solutions | 802 | 709 | 788 | 720 | 722 | 602 | 625 |
| Process Technology | 713 | 690 | 654 | 649 | 585 | 545 | 527 |
| Group items | -7 | -5 | -7 | -5 | -7 | -7 | -5 |
| Addtech Group | 4,653 | 4,418 | 4,376 | 3,916 | 3,586 | 3,257 | 3,279 |
| EBITA by business area Quarterly data, SEKm | 2022/2023 | 2021/2022 | |||||
| --- | --- | --- | --- | --- | --- | --- | --- |
| Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |
| Automation | 105 | 105 | 91 | 103 | 76 | 73 | 56 |
| Electrification | 118 | 126 | 114 | 89 | 73 | 83 | 73 |
| Energy | 169 | 159 | 156 | 125 | 114 | 112 | 116 |
| Industrial Solutions | 148 | 115 | 132 | 125 | 133 | 102 | 92 |
| Process Technology | 94 | 91 | 87 | 84 | 74 | 64 | 77 |
| Group items | -4 | -14 | -10 | -9 | -11 | -9 | -12 |
| EBITA | 630 | 582 | 570 | 517 | 459 | 425 | 402 |
| Depr. of intangible non-current assets | -94 | -93 | -88 | -81 | -77 | -74 | -70 |
| - of which acquisitions | -88 | -87 | -84 | -74 | -73 | -70 | -67 |
| Operating profit | 536 | 489 | 482 | 436 | 382 | 351 | 332 |
| Net sales SEKm | 3 months | 9 months | Rolling 12 months | ||||
| --- | --- | --- | --- | --- | --- | --- | |
| 31 Dec 2022 | 31 Dec 2021 | 31 Dec 2022 | 31 Dec 2021 | 31 Dec 2022 | 31 Mar 2022 | ||
| Automation | 877 | 691 | 2,448 | 1,888 | 3,276 | 2,716 | |
| Electrification | 1,001 | 677 | 2,888 | 1,897 | 3,620 | 2,629 | |
| Energy | 1,267 | 918 | 3,774 | 2,750 | 4,766 | 3,742 | |
| Industrial Solutions | 802 | 722 | 2,299 | 1,949 | 3,019 | 2,669 | |
| Process Technology | 713 | 585 | 2,057 | 1,657 | 2,706 | 2,306 | |
| Group items | -7 | -7 | -19 | -19 | -24 | -24 | |
| Addtech Group | 4,653 | 3,586 | 13,447 | 10,122 | 17,363 | 14,038 | |
| EBITA and EBITA-margin | 3 months | 9 months | |||||
| --- | --- | --- | --- | --- | --- | --- | --- |
| 31 Dec 2022 | 31 Dec 2021 | 31 Dec 2022 | 31 Dec 2021 | ||||
| SEKm | % | SEKm | % | SEKm | % | SEKm | |
| Automation | 105 | 12.0 | 76 | 11.0 | 301 | 12.3 | 205 |
| Electrification | 118 | 11.7 | 73 | 10.7 | 358 | 12.4 | 229 |
| Energy | 169 | 13.4 | 114 | 12.4 | 484 | 12.8 | 342 |
| Industrial Solutions | 148 | 18.5 | 133 | 18.4 | 395 | 17.2 | 327 |
| Process Technology | 94 | 13.2 | 74 | 12.7 | 272 | 13.2 | 215 |
| Group items | -4 | -11 | -28 | -32 | |||
| EBITA | 630 | 13.5 | 459 | 12.8 | 1,782 | 13.3 | 1,286 |
| Depr. of intangible non-current assets | -94 | -77 | -275 | -221 | |||
| - of which acquisitions | -88 | -73 | -259 | -210 | |||
| Operating profit | 536 | 11.5 | 382 | 10.7 | 1,507 | 11.2 | 1,065 |
ADDTECH AB (PUBL.) INTERIM REPORT 1 APRIL - 31 DECEMBER 2022
DISAGGREGATION OF REVENUE
| Net sales by the customers geographical location | 3 months | ||||||
|---|---|---|---|---|---|---|---|
| 31 Dec 2022 | |||||||
| SEKm | Automation | Electrification | Energy | Industrial Solutions | Process Technology | Group items | Addtech Group |
| Sweden | 199 | 269 | 332 | 284 | 161 | - | 1,245 |
| Denmark | 173 | 84 | 286 | 9 | 120 | 0 | 672 |
| Finland | 152 | 107 | 96 | 140 | 98 | 0 | 593 |
| Norway | 53 | 91 | 222 | 33 | 110 | - | 509 |
| Other Europe | 259 | 393 | 260 | 189 | 150 | - | 1,251 |
| Other countries | 40 | 55 | 70 | 147 | 71 | - | 383 |
| Group items | 1 | 2 | 1 | 0 | 3 | -7 | - |
| Total | 877 | 1,001 | 1,267 | 802 | 713 | -7 | 4,653 |
| Net sales by the customers geographical location | 9 months | ||||||
| --- | --- | --- | --- | --- | --- | --- | --- |
| 31 Dec 2022 | |||||||
| SEKm | Automation | Electrification | Energy | Industrial Solutions | Process Technology | Group items | Addtech Group |
| Sweden | 556 | 776 | 990 | 813 | 466 | - | 3,601 |
| Denmark | 483 | 244 | 852 | 25 | 346 | 1 | 1,951 |
| Finland | 424 | 310 | 287 | 402 | 282 | 0 | 1,705 |
| Norway | 146 | 261 | 661 | 95 | 317 | - | 1,480 |
| Other Europe | 724 | 1,133 | 773 | 541 | 434 | - | 3,605 |
| Other countries | 111 | 159 | 209 | 422 | 204 | - | 1,105 |
| Group items | 4 | 5 | 2 | 1 | 8 | -20 | - |
| Total | 2,448 | 2,888 | 3,774 | 2,299 | 2,057 | -19 | 13,447 |
| Net sales by the customers geographical location | 3 months | ||||||
| --- | --- | --- | --- | --- | --- | --- | --- |
| 31 Dec 2021 | |||||||
| SEKm | Automation | Electrification | Energy | Industrial Solutions | Process Technology | Group items | Addtech Group |
| Sweden | 174 | 225 | 227 | 262 | 134 | 0 | 1,022 |
| Denmark | 136 | 77 | 229 | 8 | 88 | 0 | 538 |
| Finland | 116 | 90 | 59 | 123 | 103 | 0 | 491 |
| Norway | 49 | 73 | 177 | 29 | 82 | - | 410 |
| Other Europe | 188 | 166 | 169 | 183 | 129 | 0 | 835 |
| Other countries | 27 | 44 | 56 | 116 | 47 | 0 | 290 |
| Group items | 1 | 2 | 1 | 1 | 2 | -7 | - |
| Total | 691 | 677 | 918 | 722 | 585 | -7 | 3,586 |
| Net sales by the customers geographical location | 9 months | ||||||
| --- | --- | --- | --- | --- | --- | --- | --- |
| 31 Dec 2021 | |||||||
| SEKm | Automation | Electrification | Energy | Industrial Solutions | Process Technology | Group items | Addtech Group |
| Sweden | 475 | 630 | 681 | 706 | 379 | 0 | 2,871 |
| Denmark | 372 | 216 | 686 | 22 | 249 | 1 | 1,546 |
| Finland | 318 | 254 | 176 | 331 | 291 | 0 | 1,370 |
| Norway | 133 | 204 | 529 | 79 | 233 | - | 1,178 |
| Other Europe | 512 | 465 | 507 | 495 | 364 | 0 | 2,343 |
| Other countries | 75 | 123 | 169 | 314 | 133 | 0 | 814 |
| Group items | 3 | 5 | 2 | 2 | 8 | -20 | - |
| Total | 1,888 | 1,897 | 2,750 | 1,949 | 1,657 | -19 | 10,122 |
ADDTECH AB (PUBL.) INTERIM REPORT 1 APRIL - 31 DECEMBER 2022
Net sales per customers segment
3 months
| SEKm | Automation | Electrification | Energy | 31 Dec 2022 | |||
|---|---|---|---|---|---|---|---|
| Industrial Solutions | Process Technology | Group items | Addtech Group | ||||
| Vehicles | 53 | 154 | 14 | 292 | 45 | - | 558 |
| Mechanical industry | 254 | 86 | 74 | 81 | 109 | - | 604 |
| Data & telecommunications | 40 | 51 | 109 | 0 | 0 | - | 200 |
| Medical technology | 145 | 172 | 14 | 5 | 50 | - | 386 |
| Electronics | 65 | 195 | 60 | 3 | 8 | 0 | 331 |
| Energy | 63 | 147 | 595 | 6 | 91 | - | 902 |
| Forestry & process | 92 | 12 | 37 | 250 | 228 | - | 619 |
| Building & installation | 26 | 57 | 233 | 21 | 12 | - | 349 |
| Transport | 36 | 18 | 104 | 61 | 119 | - | 338 |
| Other | 102 | 107 | 26 | 83 | 48 | 0 | 366 |
| Group items | 1 | 2 | 1 | 0 | 3 | -7 | - |
| Total | 877 | 1,001 | 1,267 | 802 | 713 | -7 | 4,653 |
Net sales per customers segment
9 months
| SEKm | Automation | Electrification | Energy | 31 Dec 2022 | |||
|---|---|---|---|---|---|---|---|
| Industrial Solutions | Process Technology | Group items | Addtech Group | ||||
| Vehicles | 149 | 444 | 41 | 836 | 130 | - | 1,600 |
| Mechanical industry | 708 | 248 | 221 | 233 | 313 | - | 1,723 |
| Data & telecommunications | 112 | 148 | 325 | 1 | 1 | - | 587 |
| Medical technology | 405 | 496 | 43 | 15 | 145 | - | 1,104 |
| Electronics | 182 | 562 | 178 | 10 | 22 | 1 | 955 |
| Energy | 174 | 426 | 1,772 | 16 | 263 | - | 2,651 |
| Forestry & process | 257 | 34 | 110 | 717 | 657 | - | 1,775 |
| Building & installation | 74 | 165 | 695 | 59 | 35 | - | 1,028 |
| Transport | 99 | 52 | 309 | 173 | 343 | - | 976 |
| Other | 284 | 308 | 78 | 238 | 140 | 0 | 1,048 |
| Group items | 4 | 5 | 2 | 1 | 8 | -20 | - |
| Total | 2,448 | 2,888 | 3,774 | 2,299 | 2,057 | -19 | 13,447 |
Net sales per customers segment
3 months
| SEKm | Automation | Electrification | Energy | 31 Dec 2021 | |||
|---|---|---|---|---|---|---|---|
| Industrial Solutions | Process Technology | Group items | Addtech Group | ||||
| Vehicles | 46 | 103 | 15 | 245 | 33 | - | 442 |
| Mechanical industry | 190 | 73 | 64 | 70 | 99 | - | 496 |
| Data & telecommunications | 23 | 48 | 87 | 0 | 0 | - | 158 |
| Medical technology | 119 | 62 | 10 | 3 | 36 | - | 230 |
| Electronics | 52 | 146 | 45 | 3 | 5 | 0 | 251 |
| Energy | 45 | 101 | 362 | 6 | 88 | - | 602 |
| Forestry & process | 81 | 6 | 27 | 256 | 171 | - | 541 |
| Building & installation | 25 | 49 | 211 | 19 | 31 | - | 335 |
| Transport | 27 | 12 | 61 | 54 | 93 | - | 247 |
| Other | 82 | 75 | 35 | 65 | 27 | 0 | 284 |
| Group items | 1 | 2 | 1 | 1 | 2 | -7 | - |
| Total | 691 | 677 | 918 | 722 | 585 | -7 | 3,586 |
Net sales per customers segment
9 months
| SEKm | Automation | Electrification | Energy | 31 Dec 2021 | |||
|---|---|---|---|---|---|---|---|
| Industrial Solutions | Process Technology | Group items | Addtech Group | ||||
| Vehicles | 125 | 290 | 45 | 662 | 92 | - | 1,214 |
| Mechanical industry | 518 | 203 | 193 | 189 | 279 | - | 1,382 |
| Data & telecommunications | 64 | 133 | 259 | 0 | 0 | - | 456 |
| Medical technology | 324 | 173 | 30 | 9 | 102 | - | 638 |
| Electronics | 143 | 410 | 134 | 8 | 15 | 1 | 711 |
| Energy | 124 | 284 | 1,085 | 16 | 250 | - | 1,759 |
| Forestry & process | 221 | 18 | 83 | 691 | 484 | - | 1,497 |
| Building & installation | 69 | 138 | 632 | 51 | 86 | - | 976 |
| Transport | 72 | 33 | 182 | 145 | 264 | - | 696 |
| Other | 225 | 210 | 105 | 176 | 77 | 0 | 793 |
| Group items | 3 | 5 | 2 | 2 | 8 | -20 | - |
| Total | 1,888 | 1,897 | 2,750 | 1,949 | 1,657 | -19 | 10,122 |
ADDTECH AB (PUBL.) INTERIM REPORT 1 APRIL - 31 DECEMBER 2022
CONSOLIDATED INCOME STATEMENT, CONDENSED
| SEKm | 3 months | 9 months | Rolling 12 months | |||
|---|---|---|---|---|---|---|
| 31 Dec 2022 | 31 Dec 2021 | 31 Dec 2022 | 31 Dec 2021 | 31 Dec 2022 | 31 Mar 2022 | |
| Net sales | 4,653 | 3,586 | 13,447 | 10,122 | 17,363 | 14,038 |
| Cost of sales | -3,238 | -2,497 | -9,426 | -7,010 | -12,133 | -9,717 |
| Gross profit | 1,415 | 1,089 | 4,021 | 3,112 | 5,230 | 4,321 |
| Selling expenses | -671 | -538 | -1,891 | -1,528 | -2,487 | -2,124 |
| Administrative expenses | -233 | -190 | -652 | -553 | -852 | -753 |
| Other operating income and expenses | 25 | 21 | 29 | 34 | 52 | 57 |
| Operating profit | 536 | 382 | 1,507 | 1,065 | 1,943 | 1,501 |
| - as % of net sales | 11.5 | 10.7 | 11.2 | 10.5 | 11.2 | 10.7 |
| Financial income and expenses | -44 | -18 | -113 | -46 | -135 | -68 |
| Profit after financial items | 492 | 364 | 1,394 | 1,019 | 1,808 | 1,433 |
| - as % of net sales | 10.6 | 10.1 | 10.4 | 10.1 | 10.4 | 10.2 |
| Income tax expense | -105 | -85 | -301 | -227 | -390 | -316 |
| Profit for the period | 387 | 279 | 1,093 | 792 | 1,418 | 1,117 |
| Profit for the period attributable to: | ||||||
| Equity holders of the Parent Company | 374 | 265 | 1,053 | 761 | 1,366 | 1,074 |
| Non-controlling interests | 13 | 14 | 40 | 31 | 52 | 43 |
| Earnings per share before dilution, SEK | 1.40 | 0.95 | 3.90 | 2.80 | 5.10 | 4.00 |
| Earnings per share after dilution, SEK | 1.40 | 0.95 | 3.90 | 2.80 | 5.05 | 3.95 |
| Average number of shares after repurchases, '000s | 269,521 | 269,456 | 269,554 | 269,363 | 269,543 | 269,400 |
| Number of shares at end of the period, '000s | 269,565 | 269,474 | 269,565 | 269,474 | 269,565 | 269,528 |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME, CONDENSED
| SEKm | 3 months | 9 months | Rolling 12 months | |||
|---|---|---|---|---|---|---|
| 31 Dec 2022 | 31 Dec 2021 | 31 Dec 2022 | 31 Dec 2021 | 31 Dec 2022 | 31 Mar 2022 | |
| Profit for the period | 387 | 279 | 1,093 | 792 | 1,418 | 1,117 |
| Components that will be reclassified to profit for the year | ||||||
| Cash flow hedges | 13 | 1 | 2 | 2 | 2 | 2 |
| Foreign currency translation differences for the period | 105 | 85 | 302 | 35 | 366 | 99 |
| Components that will not be reclassified to profit for the year | ||||||
| Actuarial effects of the net pension obligation | -32 | -5 | 44 | -5 | 67 | 18 |
| Other comprehensive income | 86 | 81 | 348 | 32 | 435 | 119 |
| Total comprehensive income | 473 | 360 | 1,441 | 824 | 1,853 | 1,236 |
| Total comprehensive income attributable to: | ||||||
| Equity holders of the Parent Company | 456 | 344 | 1,393 | 792 | 1,791 | 1,190 |
| Non-controlling interests | 17 | 16 | 48 | 32 | 62 | 46 |
ADDTECH AB (PUBL.) INTERIM REPORT 1 APRIL - 31 DECEMBER 2022
CONSOLIDATED BALANCE SHEET, CONDENSED
| SEKm | 31 Dec 2022 | 31 Dec 2021 | 31 Mar 2022 |
|---|---|---|---|
| Goodwill | 3,900 | 3,109 | 3,306 |
| Other intangible non-current assets | 2,378 | 1,938 | 2,062 |
| Property, plant and equipment | 1,130 | 991 | 1,057 |
| Other non-current assets | 69 | 65 | 65 |
| Total non-current assets | 7,477 | 6,103 | 6,490 |
| Inventories | 3,385 | 2,266 | 2,569 |
| Current receivables | 3,409 | 2,474 | 2,931 |
| Cash and cash equivalents | 587 | 478 | 437 |
| Total current assets | 7,381 | 5,218 | 5,937 |
| Total assets | 14,858 | 11,321 | 12,427 |
| Total equity | 5,148 | 3,952 | 4,259 |
| Interest-bearing provisions | 264 | 344 | 314 |
| Non-interest-bearing provisions | 582 | 426 | 500 |
| Non-current interest-bearing liabilities | 3,648 | 2,359 | 2,136 |
| Non-current non-interest-bearing liabilities | 9 | 10 | 9 |
| Total non-current liabilities | 4,503 | 3,139 | 2,959 |
| Non-interest-bearing provisions | 73 | 56 | 72 |
| Current interest-bearing liabilities | 1,525 | 1,418 | 2,048 |
| Current non-interest-bearing liabilities | 3,609 | 2,756 | 3,089 |
| Total current liabilities | 5,207 | 4,230 | 5,209 |
| Total equity and liabilities | 14,858 | 11,321 | 12,427 |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY, CONDENSED
| SEKm | 31 Dec 2022 | 31 Dec 2021 | 31 Mar 2022 |
|---|---|---|---|
| Opening balance | 4,259 | 3,450 | 3,450 |
| Exercised, issued and repurchased options | -17 | 3 | 10 |
| Repurchase of treasury shares | -31 | - | - |
| Dividend, ordinary | -485 | -323 | -323 |
| Dividend, non-controlling interests | -34 | -14 | -15 |
| Change, non-controlling interests | 28 | 12 | 58 |
| Option debt, acquisition | -13 | - | -157 |
| Total comprehensive income | 1,441 | 824 | 1,236 |
| Closing balance | 5,148 | 3,952 | 4,259 |
ADDTECH AB (PUBL.) INTERIM REPORT 1 APRIL - 31 DECEMBER 2022
CONSOLIDATED CASH FLOW STATEMENT, CONDENSED
| SEKm | 3 months | 9 months | Rolling 12 months | |||
|---|---|---|---|---|---|---|
| 31 Dec 2022 | 31 Dec 2021 | 31 Dec 2022 | 31 Dec 2021 | 31 Dec 2022 | 31 Mar 2022 | |
| Profit after financial items | 492 | 364 | 1,394 | 1,019 | 1,808 | 1,433 |
| Adjustment for items not included in cash flow | 156 | 147 | 522 | 420 | 696 | 594 |
| Income tax paid | -122 | -149 | -335 | -314 | -437 | -416 |
| Changes in working capital | 50 | 8 | -481 | -320 | -651 | -490 |
| Cash flow from operating activities | 576 | 370 | 1,100 | 805 | 1,416 | 1,121 |
| Net investments in non-current assets | -33 | -35 | -95 | -65 | -146 | -116 |
| Acquisitions and disposals | -153 | -119 | -1,135 | -711 | -1,563 | -1,139 |
| Cash flow from investing activities | -186 | -154 | -1,230 | -776 | -1,709 | -1,255 |
| Dividend paid to shareholders | - | - | -485 | -323 | -485 | -323 |
| Repurchase of own shares/change of options | 30 | 32 | -48 | 3 | -41 | 10 |
| Other financing activities | -409 | -259 | 799 | 354 | 905 | 460 |
| Cash flow from financing activities | -379 | -227 | 266 | 34 | 379 | 147 |
| Cash flow for the period | 11 | -11 | 136 | 63 | 86 | 13 |
| Cash and cash equivalents at beginning of period | 572 | 479 | 437 | 420 | 478 | 420 |
| Exchange differences on cash and cash equivalents | 4 | 10 | 14 | -5 | 23 | 4 |
| Cash and cash equivalents at end of period | 587 | 478 | 587 | 478 | 587 | 437 |
FAIR VALUES ON FINANCIAL INSTRUMENTS
| SEKm | 31 Dec 2022 | 31 Mar 2022 | ||||
|---|---|---|---|---|---|---|
| Carrying amount | Level 2 | Level 3 | Carrying amount | Level 2 | Level 3 | |
| Derivatives - fair value, hedge instruments | 12 | 12 | - | 6 | 6 | - |
| Derivatives - fair value through profit | 9 | 9 | - | 4 | 4 | - |
| Total financial assets at fair value per level | 21 | 21 | - | 10 | 10 | - |
| Derivatives - fair value, hedge instruments | 5 | 5 | - | 3 | 3 | - |
| Derivatives - fair value through profit | 38 | 38 | - | 12 | 12 | - |
| Contingent considerations - fair value through profit | 314 | - | 314 | 349 | - | 349 |
| Total financial liabilities at fair value per level | 357 | 43 | 314 | 364 | 15 | 349 |
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 | 31 Dec 2022 | 31 Mar 2022 |
|---|---|---|
| Opening balance | 349 | 267 |
| Acquisitions during the year | 138 | 170 |
| Reversed through profit or loss | -23 | -8 |
| Consideration paid | -173 | -96 |
| Interest expenses | 9 | 12 |
| Exchange differences | 14 | 4 |
| Closing balance | 314 | 349 |
ADDTECH AB (PUBL.) INTERIM REPORT 1 APRIL - 31 DECEMBER 2022
KEY FINANCIAL INDICATORS
| 12 months ending | |||||
|---|---|---|---|---|---|
| 31 Dec 2022 | 31 Mar 2022 | 31 Dec 2021 | 31 Mar 2021 | 31 Mar 2020 | |
| Net sales, SEKm | 17,363 | 14,038 | 13,049 | 11,336 | 11,735 |
| EBITDA, SEKm | 2,616 | 2,077 | 1,888 | 1,501 | 1,579 |
| EBITA, SEKm | 2,299 | 1,803 | 1,621 | 1,251 | 1,364 |
| EBITA-margin, % | 13.2 | 12.8 | 12.4 | 11.0 | 11.6 |
| Operating profit, SEKm | 1,943 | 1,501 | 1,331 | 989 | 1,161 |
| Operating margin, % | 11.2 | 10.7 | 10.2 | 8.7 | 9.9 |
| Profit after financial items, SEKm | 1,808 | 1,433 | 1,270 | 937 | 1,105 |
| Profit for the period, SEKm | 1,418 | 1,117 | 982 | 729 | 873 |
| Working capital | 3,543 | 2,618 | 2,463 | 2,416 | 2,415 |
| Return on working capital (P/WC), % | 65 | 69 | 66 | 52 | 56 |
| Return on equity, % | 31 | 30 | 28 | 23 | 32 |
| Return on capital employed, % | 21 | 20 | 19 | 15 | 21 |
| Equity ratio, % | 35 | 34 | 35 | 35 | 36 |
| Financial debt, SEKm | 4,850 | 4,061 | 3,643 | 3,134 | 2,585 |
| Debt / equity ratio, multiple | 0.9 | 1.0 | 0.9 | 0.9 | 0.8 |
| Financial debt / EBITDA, multiple | 1.9 | 2.0 | 1.9 | 2.1 | 1.6 |
| Net debt excl. pensions, SEKm | 4,586 | 3,747 | 3,299 | 2,798 | 2,253 |
| Net debt, excl pensions / equity ratio, multiple | 0.9 | 0.9 | 0.8 | 0.8 | 0.7 |
| Interest coverage ratio, multiple | 15.8 | 22.4 | 20.8 | 15.8 | 20.5 |
| Average number of employees | 3,663 | 3,317 | 3,240 | 3,068 | 2,913 |
| Number of employees at end of the period | 3,861 | 3,556 | 3,381 | 3,133 | 2,981 |
KEY FINANCIAL INDICATORS PER SHARE
| SEK | 12 months ending | ||||
|---|---|---|---|---|---|
| 31 Dec 2022 | 31 Mar 2022 | 31 Dec 2021 | 31 Mar 2021 | 31 Mar 2020 | |
| Earnings per share before dilution | 5.10 | 4.00 | 3.45 | 2.60 | 3.20 |
| Earnings per share after dilution | 5.05 | 3.95 | 3.45 | 2.60 | 3.20 |
| Cash flow from operating activities per share | 5.25 | 4.15 | 4.65 | 5.60 | 4.15 |
| Shareholders' equity per share | 17.70 | 14.60 | 13.65 | 11.95 | 11.25 |
| Share price at the end of the period | 148.70 | 182.00 | 216.00 | 130.00 | 61.13 |
| Average number of shares after repurchases, '000s | 269,543 | 269,400 | 269,331 | 269,051 | 268,493 |
| Average number of shares adjusted for repurchases and dilution, '000s | 269,698 | 270,346 | 270,209 | 269,969 | 269,200 |
| Number of shares outstanding at end of the period, '000s | 269,565 | 269,528 | 269,474 | 269,275 | 268,594 |
For definitions of key financial indicators, see page 18-20.
ADDTECH AB (PUBL.) INTERIM REPORT 1 APRIL - 31 DECEMBER 2022
PARENT COMPANY INCOME STATEMENT, CONDENSED
| SEKm | 3 months | 9 months | Rolling 12 months | |||
|---|---|---|---|---|---|---|
| 31 Dec 2022 | 31 Dec 2021 | 31 Dec 2022 | 31 Dec 2021 | 31 Dec 2022 | 31 Mar 2022 | |
| Net sales | 21 | 16 | 62 | 48 | 78 | 64 |
| Administrative expenses | -32 | -25 | -88 | -71 | -113 | -96 |
| Operating profit/loss | -11 | -9 | -26 | -23 | -35 | -32 |
| Interest income and expenses and similar items | -3 | -1 | -38 | 2 | -39 | 1 |
| Profit after financial items | -14 | -10 | -64 | -21 | -74 | -31 |
| Appropriations | - | - | - | - | 295 | 295 |
| Profit before taxes | -14 | -10 | -64 | -21 | 221 | 264 |
| Income tax expense | 2 | 2 | 12 | 4 | -47 | -55 |
| Profit for the period | -12 | -8 | -52 | -17 | 174 | 209 |
| Total comprehensive income | -12 | -8 | -52 | -17 | 174 | 209 |
PARENT COMPANY BALANCE SHEET, CONDENSED
| SEKm | 31 Dec 2022 | 31 Dec 2021 | 31 Mar 2022 |
|---|---|---|---|
| Intangible non-current assets | 1 | 1 | 1 |
| Property, plant and equipment | 0 | 1 | 0 |
| Non-current financial assets | 4,794 | 4,635 | 4,646 |
| Total non-current assets | 4,795 | 4,637 | 4,647 |
| Current receivables | 1,452 | 811 | 1,050 |
| Cash and bank balances | 0 | - | - |
| Total current assets | 1,452 | 811 | 1,050 |
| Total assets | 6,247 | 5,448 | 5,697 |
| Restricted equity | 69 | 69 | 69 |
| Unrestricted equity | 90 | 442 | 675 |
| Total equity | 159 | 511 | 744 |
| Untaxed reserves | 302 | 211 | 302 |
| Provisions | 13 | 13 | 13 |
| Non-current liabilities | 3,300 | 1,850 | 1,684 |
| Current liabilities | 2,473 | 2,863 | 2,954 |
| Total equity and liabilities | 6,247 | 5,448 | 5,697 |
ADDTECH AB (PUBL.) INTERIM REPORT 1 APRIL - 31 DECEMBER 2022
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 21.
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 21.
EBITA¹
Operating profit before amortisation of intangible assets.
EBITA is used to analyse the profitability generated by operating activities, see reconciliation table on page 21.
EBITA-margin¹
EBITA as a percentage of net sales.
EBITA-margin is used to 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 21.
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 21.
ADDTECH AB (PUBL.) INTERIM REPORT 1 APRIL – 31 DECEMBER 2022
ADDTECH AB (PUBL.) INTERIM REPORT 1 APRIL – 31 DECEMBER 2022
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 21.
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 21.
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 21.
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 21.
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 21.
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.
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 21.
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 – 31 DECEMBER 2022
20
RECONCILIATION TABLES ALTERNATIVE PERFORMANCE MEASURES
| EBITA and EBITDA | 12 months ending | ||||
|---|---|---|---|---|---|
| Addtech Group, SEKm | 31 Dec 2022 | 31 Mar 2022 | 31 Dec 2021 | 31 Mar 2021 | 31 Mar 2020 |
| Operating profit according to Interim report | 1,943 | 1,501 | 1,331 | 989 | 1,161 |
| Amortization, intangible assets (+) | 356 | 302 | 290 | 262 | 203 |
| EBITA | 2,299 | 1,803 | 1,621 | 1,251 | 1,364 |
| Depreciation, tangible assets (+) | 317 | 274 | 267 | 250 | 215 |
| EBITDA | 2,616 | 2,077 | 1,888 | 1,501 | 1,579 |
| Working capital and return on working capital (P/WC) | |||||
| --- | --- | --- | --- | --- | --- |
| 12 months ending | |||||
| Addtech Group, SEKm | 31 Dec 2022 | 31 Mar 2022 | 31 Dec 2021 | 31 Mar 2021 | 31 Mar 2020 |
| EBITA (12 months rolling) | 2,299 | 1,803 | 1,621 | 1,251 | 1,364 |
| Inventory, yearly average (+) | 2,907 | 2,058 | 1,893 | 1,722 | 1,594 |
| Accounts receivables, yearly average (+) | 2,660 | 2,078 | 1,930 | 1,756 | 1,854 |
| Accounts payables, yearly average (-) | 2,024 | 1,518 | 1,360 | 1,062 | 1,033 |
| Working capital (average) | 3,543 | 2,618 | 2,463 | 2,416 | 2,415 |
| Return on working capital (P/WC) (%) | 65% | 69% | 66% | 52% | 56% |
| Acquired- and organic growth | |||||
| --- | --- | --- | --- | --- | --- |
| 3 months | 9 months | ||||
| 31 Dec | 31 Dec | 31 Dec | |||
| Addtech Group | 2022 | 2021 | 2022 | ||
| Acquired growth (SEKm,%) | 385 | (11%) | 315 | (11%) | 1,243 |
| Organic growth (SEKm,%) | 507 | (14%) | 380 | (13%) | 1,674 |
| Divestments (SEKm,%) | - | (-%) | -5 | (0%) | - |
| Exchange rate effect (SEKm,%) | 175 | (5%) | 15 | (0%) | 408 |
| Total growth (SEKm,%) | 1,067 | (30%) | 705 | (24%) | 3,325 |
| Interest coverage ratio | 12 months ending | ||||
| Addtech Group | 31 Dec 2022 | 31 Mar 2022 | 31 Dec 2021 | ||
| Profit after financial items, SEKm | 1,808 | 1,433 | 1,270 | ||
| Interest expenses and bank charges, SEKm (+) | 122 | 67 | 64 | ||
| Total | 1,930 | 1,500 | 1,334 | ||
| Interest coverage ratio, multiple | 15.8 | 22.4 | 20.8 | ||
| Net debt excl. pensions and net debt excl pensions/equity ratio | 12 months ending | ||||
| Addtech Group | 31 Dec 2022 | 31 Mar 2022 | 31 Dec 2021 | 31 Mar 2021 | |
| Financial net debt, SEKm | 4,850 | 4,061 | 3,643 | 3,134 | |
| Pensions, SEKm (-) | -264 | -314 | -344 | -336 | |
| Net debt excluding pensions, SEKm | 4,586 | 3,747 | 3,299 | 2,798 | |
| Equity, SEKm | 5,148 | 4,259 | 3,952 | 3,450 | |
| Net debt to Equity ratio (excluding pensions), multiple | 0.9 | 0.9 | 0.8 | 0.8 | |
| Capital employed and return on capital employed | 12 months ending | ||||
| Addtech Group, SEKm | 31 Dec 2022 | 31 Mar 2022 | 31 Dec 2021 | 31 Mar 2021 | |
| Profit after financial items | 1,808 | 1,433 | 1,270 | 937 | |
| Financial expenses (+) | 206 | 152 | 130 | 93 | |
| Profit after financial items plus financial expenses | 2,014 | 1,585 | 1,400 | 1,030 | |
| Total assets, yearly average (+) | 13,490 | 11,001 | 10,389 | 9,309 | |
| Non-interest-bearing liabilities, yearly average (-) | -3,325 | -2,705 | -2,492 | -2,153 | |
| Non-interest-bearing provisions, yearly average (-) | -607 | -485 | -457 | -413 | |
| Capital employed | 9,558 | 7,811 | 7,440 | 6,743 | |
| Return on capital employed, % | 21% | 20% | 19% | 15% |
ADDTECH AB (PUBL.) INTERIM REPORT 1 APRIL - 31 DECEMBER 2022
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 more than 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 - 31 DECEMBER 2022