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Addtech AB Interim / Quarterly Report 2024
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Interim / Quarterly Report
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ADDTECH
INTERIM REPORT 1 APRIL - 30 SEPTEMBER 2023
SECOND QUARTER (1 JULY - 30 SEPTEMBER 2023)
- Net sales increased by 10 percent and amounted to SEK 4,879 million (4,418).
- Operating profit before amortisation of intangible non-current assets (EBITA) increased by 25 percent and amounted to SEK 727 million (582) corresponding to an EBITA margin of 14.9 percent (13.2).
- Operating profit increased by 27 percent and amounted to SEK 618 million (489) corresponding to an operating margin of 12.7 percent (11.1).
- Profit after tax increased by 23 percent and amounted to SEK 447 million (362) and earnings per share before/after dilution amounted to SEK 1.60 (1.30).
PERIOD (1 APRIL - 30 SEPTEMBER 2023)
- Net sales increased by 13 percent and amounted to SEK 9,968 million (8,794).
- Operating profit before amortisation of intangible non-current assets (EBITA) increased by 23 percent and amounted to SEK 1,423 million (1,152) corresponding to an EBITA margin of 14.3 percent (13.1).
- Operating profit increased by 25 percent and amounted to SEK 1,213 million (971) corresponding to an operating margin of 12.2 percent (11.0).
- Profit after tax increased by 19 percent and amounted to SEK 839 million (706) and earnings per share before/after dilution amounted to SEK 3.00 (2.50). For the latest twelve month period earnings per share before dilution amounted to SEK 6.05 (4.65) and after dilution to SEK 6.05 (4.60).
- Return on working capital (P/WC) amounted to 67 percent (66).
- Return on equity amounted to 31 percent (31) and the equity ratio amounted to 36 percent (32).
- Cash flow from operating activities amounted to SEK 1,150 million (524). For the latest twelve month period, cash flow per share from operating activities amounted to SEK 9.40 (4.50).
- Since the start of the financial year six acquisitions have been completed, with total annual sales of about SEK 465 million. After the end of the period another acquisition agreement was signed.
| Group Summary | 3 months | 6 months | Rolling 12 months | |||||
|---|---|---|---|---|---|---|---|---|
| 30 Sep 2023 | 30 Sep 2022 | Δ | 30 Sep 2023 | 30 Sep 2022 | Δ | 30 Sep 2023 | 31 Mar 2023 | |
| Net sales | 4,879 | 4,418 | 10% | 9,968 | 8,794 | 13% | 19,888 | 18,714 |
| EBITA | 727 | 582 | 25% | 1,423 | 1,152 | 23% | 2,811 | 2,540 |
| EBITA-margin % | 14.9 | 13.2 | 14.3 | 13.1 | 14.1 | 13.6 | ||
| Profit after financial items | 579 | 464 | 25% | 1,088 | 902 | 21% | 2,191 | 2,005 |
| Profit for the period | 447 | 362 | 23% | 839 | 706 | 19% | 1,687 | 1,554 |
| Earnings per share before dilution, SEK | 1.60 | 1.30 | 3.00 | 2.50 | 6.05 | 5.55 | ||
| Earnings per share after dilution, SEK | 1.60 | 1.30 | 3.00 | 2.50 | 6.05 | 5.55 | ||
| Cash flow from operating activities per share, SEK | - | - | - | - | 9.40 | 7.10 | ||
| Return on equity, % | 31 | 31 | 31 | 31 | 31 | 32 | ||
| Equity ratio, % | 36 | 32 | 36 | 32 | 36 | 36 |
Comparisons in parentheses refer to the corresponding period of the previous year, unless stated otherwise.
ADDTECH AB (PUBL.) INTERIM REPORT 1 APRIL - 30 SEPTEMBER 2023
CEO'S COMMENTS
SECOND QUARTER - HIGH CUSTOMER ACTIVITY AND STRENGTHENED PROFITABILITY
Customer activity levels remained at a high level in our companies. All business areas contributed to a total increase in sales of 10 percent, of which 1 percentage point was organic, mainly related to lower organic sales growth for the quarter in the Energy business area. Higher added value, combined with a favourable product mix and good acquisition outcomes, gave growth in EBITA of 25 percent with a very strong EBITA margin of 14.9 percent (13.2). Given tough comparison figures and a challenging environment, it is satisfying that our decentralised business model, with its market proximity, again demonstrated its strength.
MARKET TREND
Overall, the business situation was stable in most of our key customer segments and geographies. The sales trend was favourable regarding components to manufacturing companies within the defence and process industries. Order intake for infrastructure products for national and regional grids remained strong while willingness to invest in major sawmill industry projects remained at low levels. The business situation in the electronics, medical and mechanical industry segments, as well as in special vehicles was stable, as was demand from customers in building and installation. From a geographical perspective, the market situation was stable in Sweden and Denmark, while it weakened in Finland but was strong in Norway. In our principal markets outside Nordic region, the business situation was stable for our companies operating in the Benelux and DACH regions, while it remained strong in the UK.
Thanks to high earnings growth, a good operating margin and measures to improve efficiency in our working capital, our cash flow from operating activities for the quarter was strong at SEK 603 million (243). P/WC strengthened from already high levels to 67 percent.
ACQUISITIONS
According to plan, we are continuing to acquire profitable and sustainable companies that complement and strengthen our niche strategies. Over the financial year to date, we have completed six acquisitions representing combined annual sales SEK 465 million and high profitability. After the end of the quarter, an agreement for an additional acquisition was signed – Norwegian Control Cutter AS, which provides leading technical solutions to the global market for the decommissioning of offshore oil and gas wells. This company provides a good example of how we are focusing on high-performing businesses offering considerable technical added value and high profitability. With a strong balance sheet and a generally positive view of the acquisitions market, we are actively working to fill and process our well-filled pipeline with attractive acquisition candidates in all business areas.
OUTLOOK
We currently see no general decline in customer activity. Over the quarter, however, the total order backlog decreased somewhat in volume, reflecting the gradual normalisation of customers' ordering but also the uncertain macro situation. Our confidence in the resilience of our strategic positions and the quality of our well-filled order books is unchanged.
We are monitoring the market situation closely and are modest with regard to its future impact. There is, however, no doubt as to the strength of our well-diversified portfolio of entrepreneurial and agile companies and its capacity to respond quickly to challenges, while also capturing future potential. Our main focus is always on creating stable and profitable growth in the long term in line with our target of doubling earnings every five years. Against this background, I would like to conclude by extending my sincere gratitude to all highly committed employees for another very well-executed quarter.
Niklas Stenberg
President and CEO
ADDTECH AB (PUBL.) INTERIM REPORT 1 APRIL - 30 SEPTEMBER 2023
GROUP DEVELOPMENT
Sales development
Net sales in the Addtech Group increased in the second quarter by 10 percent to SEK 4,879 million (4,418). The organic growth amounted to 1 percent and acquired growth amounted to 4 percent. Exchange rate changes affect net sales positively with 5 percent, corresponding to SEK 213 million.
Net sales in the Addtech Group during the period increased by 13 percent to SEK 9,968 million (8,794). The organic growth amounted to 4 percent and acquired growth amounted to 5 percent. Exchange rate changes affect net sales positively with 4 percent, corresponding to SEK 385 million.
Profit development
EBITA in the second quarter amounted to SEK 727 million (582), representing an increase of 25 percent. Operating profit increased during the quarter by 27 percent to SEK 618 million (489) and the operating margin amounted to 12.7 percent (11.1). Net financial items amounted to SEK -39 million (-25) and profit after financial items increased by 25 percent to SEK 579 million (464).
Profit after tax increased by 23 percent to SEK 447 million (362) corresponding to earnings per share before/after dilution of SEK 1.60 (1.30).
EBITA for the period amounted to SEK 1,423 million (1,152), representing an increase of 23 percent. Operating profit increased during the period by 25 percent to SEK 1,213 million (971) and the operating margin amounted to 12.2 percent (11.0). Net financial items were SEK -125 million (-69) and profit after financial items increased by 21 percent to SEK 1,088 million (902).
Profit after tax for the period increased by 19 percent to SEK 839 million (706) and the effective tax rate amounted to 23 percent (22). Earnings per share before/after dilution for the period amounted to SEK 3.00 (2.50). For the latest twelve month period, earnings per share before dilution amounted to SEK 6.05 (4.65) and after dilution to SEK 6.05 (4.60).
ADDTECH AB (PUBL.) INTERIM REPORT 1 APRIL - 30 SEPTEMBER 2023
DEVELOPMENT IN THE BUSINESS AREAS
AUTOMATION
Net sales in Automation increased in the second quarter by 6 percent to SEK 862 million (810) and EBITA increased by 9 percent to SEK 114 million (105). Net sales during the period increased by 12 percent to SEK 1,759 million (1,571) and EBITA increased by 14 percent to SEK 223 million (196).
Market
For the Automation business area as a whole, the business situation was stable in the second quarter. In medical technology, demand decreased against very tough comparison figures, while the market situation was strong in defence and stable at a high level in the process and mechanical industries. A favourable product mix resulted in a higher operating margin.
ELECTRIFICATION
Net sales in Electrification increased in the second quarter by 7 percent to SEK 1,029 million (958) and EBITA increased by 8 percent to SEK 137 million (126). Net sales during the period increased by 9 percent to SEK 2,053 million (1,887) and EBITA increased by 11 percent to SEK 267 million (240).
Market
The Electrification business area had a stable business situation in the second quarter with some variation in demand. The market situation was stable in wind power but diminished in data and telecom as well as in building and installation. Demand decreased in medical technology and electronics against tough comparison figures, while it was favourable for companies active in the defence and special vehicles segments, as well as for solutions in electronics production.
ENERGY
Net sales in Energy increased in the second quarter by 3 percent to SEK 1,297 million (1,256) and EBITA increased by 8 percent to SEK 172 million (159). Net sales during the period increased by 9 percent to SEK 2,725 million (2,507) and EBITA increased by 17 percent to SEK 370 million (315).
Market
The Energy business area enjoyed a favourable market position in its key customer segments during the quarter. Organic sales were affected negatively by a decline in volume business. Demand for infrastructure products for the conversion and expansion of national and regional grids was highly favourable in a continued strong market, while sales were stable at high levels. The business situation was positive for the units active in niche products for electric power distribution, in the manufacturing industry, as well as in building and installation, while it remained weak in wind power and the expansion of fiber optic networks. A favourable product mix brought a higher operating margin. The revaluation of contingent purchase considerations affected profit for the quarter negatively by about SEK 7 million.
INDUSTRIAL SOLUTIONS
Net sales in Industrial Solutions increased in the second quarter by 18 percent to SEK 835 million (709) and EBITA increased by 69 percent to SEK 194 million (115). Net sales during the period increased by 17 percent to SEK 1,758 million (1,497) and EBITA increased by 42 percent to SEK 351 million (247).
Market
The Industrial Solutions business area enjoyed a favourable business situation during the quarter. Sales were very good for the companies exposed to the forestry and sawmill industry and the completion of a large number of projects affected the operating margin positively. Demand for new projects remained weak. The market situation in special vehicles was variable but, in general, stable, as it was in the mechanical industry. The business area was affected positively by an unrealised exchange rate gain of about SEK 25 million over the quarter.
PROCESS TECHNOLOGY
Net sales in Process Technology increased in the second quarter by 25 percent to SEK 863 million (690) and EBITA increased by 37 percent to SEK 124 million (91). Net sales during the period increased by 26 percent to SEK 1,687 million (1,344) and EBITA increased by 33 percent to SEK 236 million (178).
Market
For the Process Technology business area in total, the business situation was favourable in the second quarter. The market situation was strong in medical technology and energy, as well as in the marine segment. In the mechanical industry, demand decreased from a high level, while it was stable in the forest and process industry, where demand in the chemical industry, as well as in after-market components, solutions and service, offset a decline in forest. The revaluation of contingent purchase considerations affected profit for the quarter positively by about SEK 5 million.
ADDTECH AB (PUBL.) INTERIM REPORT 1 APRIL - 30 SEPTEMBER 2023
OTHER FINANCIAL INFORMATION
Profitability, financial position and cash flow
The return on equity at the end of the period was 31 percent (31) and return on capital employed was 23 percent (21). Return on working capital P/WC (EBITA in relation to working capital) amounted to 67 percent (66).
At the end of the period the equity ratio amounted to 36 percent (32). Equity per share, excluding non-controlling interest, totalled SEK 20.35 (15.95). The Group's net debt at the end of the period amounted to SEK 4,714 million (5,011), excluding pension liabilities of SEK 199 million (224). The net debt/equity ratio, calculated on the basis of net debt excluding provisions for pensions amounted to 0.8 (1.1).
Cash and cash equivalents consisting of cash and bank equivalents and approved but non-utilised credit facilities amounted to SEK 1,569 million (1,277) at 30 September 2023.
Cash flow from operating activities amounted to SEK 1,150 million (524) during the period. Company acquisitions and disposals including settlement of contingent consideration regarding acquisitions implemented in previous years amounted to SEK 717 million (982). Investments in non-current assets totalled SEK 74 million (65) and disposal of non-current assets amounted to SEK 5 million (3). Repurchase of treasury shares amounted to SEK 0 million (31) and repurchase of call options amounted to SEK 32 million (58). Exercised and issued call options totalled SEK 1 million (11). During the second quarter, dividend of SEK 2.50 (1.80) per share was paid, totalling SEK 674 million (485).
Employees
At the end of the period, the number of employees was 4,155 compared to 3,911 at the beginning of the financial year. During the period, completed acquisitions resulted in an increase of the number of employees by 149. The average number of employees in the latest twelve month period was 3,966.
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 | -3,227,772 | 1.2% | 0.8% | |
| Total number of shares after repurchases | 269,566,212 |
In accordance with a resolution of the August 2023 AGM, about 100 members of management were offered the opportunity to acquire 1,000,000 call options on repurchased Class B shares. In total, 674,500 options were subscribed for. Addtech has four outstanding call option programmes for a total of 2,676,060 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 |
|---|---|---|---|---|---|---|
| 2023/2027 | 674,500 | 674,500 | 0.2% | 221.00 | 221.00 | 7 Sep 2026 - 9 Jun 2027 |
| 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 | 101,895 | 407,580 | 0.1% | 538.10 | 134.53 | 4 Sep 2023 - 5 Jun 2024 |
| Total | 2,370,375 | 2,676,060 |
ADDTECH AB (PUBL.) INTERIM REPORT 1 APRIL - 30 SEPTEMBER 2023
Acquisitions and disposals
During the period, 1 April to 30 June 2023 the following acquisitions were completed; Electrum Automation AB, Sweden, was acquired to become part of the Electrification business area. S. Tygesen Energi A/S, Denmark, was acquired to become part of the Energy business area. Feritech Global Ltd., Great Britain, and Darby Manufacturing Ltd., Canada, were acquired to become part of the Industrial Solutions business area. INDAG Maschinenbau GmbH, Germany, and Clyde Holding Ltd., Great Britain, were acquired to become part of the Process Technology business area.
During the second quarter, no company acquisitions took place.
The purchase price allocation calculations for the acquisitions completed during the period 1 April - 30 September 2022 have now been finalised. No significant adjustments have been made to the calculations. Acquisitions completed as of the 2022/2023 financial year are distributed among the Group's business areas as follows:
| 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 |
| Acquisitions 2023/2024 | Closing | Acquired share, % | Net sales, SEKm* | Number of employees* | Business Area |
| INDAG Maschinenbau GmbH, Germany | April, 2023 | 90 | 55 | 40 | Process Technology |
| Clyde Holding Ltd., Great Britain | April, 2023 | 100 | 150 | 49 | Process Technology |
| Feritech Global Ltd., Great Britain | May, 2023 | 90 | 55 | 21 | Industrial Solutions |
| Electrum Automation AB, Sweden | June, 2023 | 100 | 80 | 22 | Electrification |
| Darby Manufacturing Ltd., Canada | June, 2023 | 100 | 50 | 14 | Industrial Solutions |
| S. Tygesen Energi A/S, Denmark | June, 2023 | 100 | 75 | 3 | Energy |
- Refers to assessed condition at the time of acquisition on a full-year basis.
ADDTECH AB (PUBL.) INTERIM REPORT 1 APRIL - 30 SEPTEMBER 2023
If all acquisitions which have taken effect during the period had been completed on 1 April 2023, their impact would have been an estimated SEK 255 million on Group net sales, about SEK 35 million on operating profit and about SEK 25 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 financial year, the discounted value amounts to SEK 160 million. The contingent purchase considerations fall due for payment within four years and the outcome is subject to a maximum of SEK 202 million.
Transaction costs for acquisitions that resulted in an ownership transfer during the period, amounted to SEK 17 million (6) and are reported under Selling expenses.
Revaluation of contingent consideration had a marginally negative net effect of SEK 0 million (+4) during the period. The impact on profits is 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 | 30 Sep 2023 | 30 Sep 2022 |
| --- | --- | --- |
| Intangible non-current assets | 344 | 433 |
| Other non-current assets | 87 | 34 |
| Inventories | 88 | 141 |
| Other current assets | 266 | 303 |
| Deferred tax liability/tax asset | -93 | -100 |
| Other liabilities | -147 | -126 |
| Acquired net assets | 545 | 685 |
| Goodwill 1) | 347 | 425 |
| Non-controlling interests 2) | -37 | -28 |
| Consideration 3) | 855 | 1,082 |
| Less: cash and cash equivalents in acquired businesses | -113 | -113 |
| Less: consideration not yet paid | -152 | -130 |
| Effect on the Group’s cash and cash equivalents | 590 | 839 |
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 during the period amounted to SEK 47 million (41) and profit after financial items was SEK -1 million (-50). Net investments in non-current assets were SEK 0 million (0). The Parent Company's financial net debt was SEK 155 million (591) at the end of the period.
ADDTECH AB (PUBL.) INTERIM REPORT 1 APRIL - 30 SEPTEMBER 2023
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 2023/2024.
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 risk factors of greatest significance to Addtech are the economic situation, or other events affecting the economy, such as the worldwide COVID-19 pandemic, as well as geopolitical conflicts, such as Russia's invasion of Ukraine, in combination with structural changes and the competitive situation.
Please see section Risks and uncertainties (page 59-61) in the annual report for 2022/2023 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.
ADDTECH AB (PUBL.) INTERIM REPORT 1 APRIL - 30 SEPTEMBER 2023
ADDTECH AB (PUBL.) INTERIM REPORT 1 APRIL - 30 SEPTEMBER 2023
Events after the end of the period
On 20 October, an agreement was signed to acquire 89 percent of the shares in Control Cutter AS, Norway, to become part of the Industrial Solutions business area. Control Cutter provides leading technical solutions to the global offshore market for the decommissioning of oil and gas wells. Through its patented solutions the company offers efficient, safe and reliable conductor recovery and subsea cutting. The company has 18 employees and sales of around NOK 160 million. The closing is estimated to take effect in the end of October 2023.
A preliminary purchase price allocation has 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 26, 2023
| Kenth Eriksson | Henrik Hedelius | Ulf Mattsson |
|---|---|---|
| Charman of the Board | Director | Director |
| Malin Nordesjö | Annikki Schaeferdiek | Niklas Stenberg |
| Director | Director | 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 26 October 2023.
Future information
2024-02-07 Interim report 1 April - 31 December 2023
2024-05-16 Year-end report 1 April 2023 - 31 March 2024
2024-07-12 Interim report 1 April - 30 June 2024
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 | 2023/2024 | 2022/2023 | ||||
|---|---|---|---|---|---|---|
| Quarterly data, SEKm | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 |
| Automation | 862 | 897 | 962 | 877 | 810 | 761 |
| Electrification | 1,029 | 1,024 | 1,149 | 1,001 | 958 | 929 |
| Energy | 1,297 | 1,428 | 1,355 | 1,267 | 1,256 | 1,251 |
| Industrial Solutions | 835 | 923 | 937 | 802 | 709 | 788 |
| Process Technology | 863 | 824 | 875 | 713 | 690 | 654 |
| Group items | -7 | -7 | -11 | -7 | -5 | -7 |
| Addtech Group | 4,879 | 5,089 | 5,267 | 4,653 | 4,418 | 4,376 |
| EBITA by business area | 2023/2024 | 2022/2023 | ||||
| --- | --- | --- | --- | --- | --- | --- |
| Quarterly data, SEKm | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 |
| Automation | 114 | 109 | 126 | 105 | 105 | 91 |
| Electrification | 137 | 130 | 143 | 118 | 126 | 114 |
| Energy | 172 | 198 | 176 | 169 | 159 | 156 |
| Industrial Solutions | 194 | 157 | 190 | 148 | 115 | 132 |
| Process Technology | 124 | 112 | 125 | 94 | 91 | 87 |
| Group items | -14 | -10 | -2 | -4 | -14 | -10 |
| EBITA | 727 | 696 | 758 | 630 | 582 | 570 |
| Depr. of intangible non-current assets | -109 | -101 | -98 | -94 | -93 | -88 |
| - of which acquisitions | -101 | -96 | -91 | -88 | -87 | -84 |
| Operating profit | 618 | 595 | 660 | 536 | 489 | 482 |
| Net sales | 3 months | 6 months | Rolling 12 months | |||
| --- | --- | --- | --- | --- | --- | --- |
| SEKm | 30 Sep 2023 | 30 Sep 2022 | 30 Sep 2023 | 30 Sep 2022 | 30 Sep 2023 | 31 Mar 2023 |
| Automation | 862 | 810 | 1,759 | 1,571 | 3,598 | 3,410 |
| Electrification | 1,029 | 958 | 2,053 | 1,887 | 4,203 | 4,037 |
| Energy | 1,297 | 1,256 | 2,725 | 2,507 | 5,347 | 5,129 |
| Industrial Solutions | 835 | 709 | 1,758 | 1,497 | 3,497 | 3,236 |
| Process Technology | 863 | 690 | 1,687 | 1,344 | 3,275 | 2,932 |
| Group items | -7 | -5 | -14 | -12 | -32 | -30 |
| Addtech Group | 4,879 | 4,418 | 9,968 | 8,794 | 19,888 | 18,714 |
| EBITA and EBITA-margin | 3 months | 6 months | ||||
| --- | --- | --- | --- | --- | --- | --- |
| 30 Sep 2023 | 30 Sep 2022 | 30 Sep 2023 | ||||
| SEKm | % | SEKm | % | SEKm | % | |
| Automation | 114 | 13.2 | 105 | 12.9 | 223 | 12.7 |
| Electrification | 137 | 13.3 | 126 | 13.2 | 267 | 13.0 |
| Energy | 172 | 13.2 | 159 | 12.6 | 370 | 13.6 |
| Industrial Solutions | 194 | 23.3 | 115 | 16.2 | 351 | 20.0 |
| Process Technology | 124 | 14.4 | 91 | 13.1 | 236 | 14.0 |
| Group items | -14 | -14 | -24 | |||
| EBITA | 727 | 14.9 | 582 | 13.2 | 1,423 | 14.3 |
| Depr. of intangible non-current assets | -109 | -93 | -210 | |||
| - of which acquisitions | -101 | -87 | -197 | |||
| Operating profit | 618 | 12.7 | 489 | 11.1 | 1,213 | 12.2 |
ADDTECH AB (PUBL.) INTERIM REPORT 1 APRIL - 30 SEPTEMBER 2023
DISAGGREGATION OF REVENUE
| Net sales by the customers geographical location | 3 months | ||||||
|---|---|---|---|---|---|---|---|
| 30 Sep 2023 | |||||||
| SEKm | Automation | Electrification | Energy | Industrial Solutions | Process Technology | Group items | Addtech Group |
| Sweden | 207 | 262 | 312 | 245 | 175 | - | 1,201 |
| Denmark | 164 | 66 | 221 | 8 | 137 | 0 | 596 |
| Finland | 153 | 112 | 88 | 178 | 87 | - | 618 |
| Norway | 56 | 82 | 252 | 57 | 119 | - | 566 |
| Other Europe | 254 | 452 | 350 | 215 | 258 | - | 1,529 |
| Other countries | 27 | 54 | 73 | 131 | 84 | - | 369 |
| Group items | 1 | 1 | 1 | 1 | 3 | -7 | - |
| Total | 862 | 1,029 | 1,297 | 835 | 863 | -7 | 4,879 |
| Net sales by the customers geographical location | 6 months | ||||||
| --- | --- | --- | --- | --- | --- | --- | --- |
| 30 Sep 2023 | |||||||
| SEKm | Automation | Electrification | Energy | Industrial Solutions | Process Technology | Group items | Addtech Group |
| Sweden | 423 | 522 | 656 | 517 | 341 | - | 2,459 |
| Denmark | 336 | 132 | 464 | 17 | 268 | 0 | 1,217 |
| Finland | 311 | 223 | 185 | 375 | 170 | - | 1,264 |
| Norway | 114 | 164 | 530 | 119 | 232 | - | 1,159 |
| Other Europe | 518 | 902 | 735 | 452 | 506 | - | 3,113 |
| Other countries | 55 | 107 | 154 | 276 | 164 | - | 756 |
| Group items | 2 | 3 | 1 | 2 | 6 | -14 | - |
| Total | 1,759 | 2,053 | 2,725 | 1,758 | 1,687 | -14 | 9,968 |
| Net sales by the customers geographical location | 3 months | ||||||
| --- | --- | --- | --- | --- | --- | --- | --- |
| 30 Sep 2022 | |||||||
| SEKm | Automation | Electrification | Energy | Industrial Solutions | Process Technology | Group items | Addtech Group |
| Sweden | 184 | 257 | 330 | 250 | 157 | - | 1,178 |
| Denmark | 159 | 81 | 284 | 8 | 116 | 1 | 649 |
| Finland | 141 | 103 | 95 | 124 | 95 | 0 | 558 |
| Norway | 48 | 87 | 220 | 29 | 107 | - | 491 |
| Other Europe | 240 | 376 | 257 | 167 | 145 | - | 1,185 |
| Other countries | 36 | 53 | 70 | 130 | 68 | - | 357 |
| Group items | 2 | 1 | 0 | 1 | 2 | -6 | - |
| Total | 810 | 958 | 1,256 | 709 | 690 | -5 | 4,418 |
| Net sales by the customers geographical location | 6 months | ||||||
| --- | --- | --- | --- | --- | --- | --- | --- |
| 30 Sep 2022 | |||||||
| SEKm | Automation | Electrification | Energy | Industrial Solutions | Process Technology | Group items | Addtech Group |
| Sweden | 357 | 507 | 658 | 529 | 305 | - | 2,356 |
| Denmark | 309 | 159 | 566 | 16 | 226 | 1 | 1,277 |
| Finland | 272 | 203 | 191 | 262 | 184 | 0 | 1,112 |
| Norway | 94 | 170 | 439 | 62 | 208 | - | 973 |
| Other Europe | 465 | 741 | 513 | 352 | 283 | - | 2,354 |
| Other countries | 71 | 104 | 139 | 275 | 133 | - | 722 |
| Group items | 3 | 3 | 1 | 1 | 5 | -13 | - |
| Total | 1,571 | 1,887 | 2,507 | 1,497 | 1,344 | -12 | 8,794 |
ADDTECH AB (PUBL.) INTERIM REPORT 1 APRIL - 30 SEPTEMBER 2023
| Net sales per customers segment | 30 Sep 2023 | ||||||
|---|---|---|---|---|---|---|---|
| SEKm | Automation | Electrification | Energy | Industrial Solutions | Process Technology | Group items | Addtech Group |
| Building & Installation | 40 | 70 | 251 | 24 | 24 | - | 409 |
| Data & Telecommunications | 40 | 42 | 91 | 0 | 1 | - | 174 |
| Electronics | 59 | 259 | 54 | 3 | 4 | 0 | 379 |
| Energy | 43 | 154 | 602 | 7 | 147 | - | 953 |
| Vehicles | 57 | 166 | 13 | 295 | 47 | - | 578 |
| Medical technology | 145 | 118 | 7 | 4 | 51 | - | 325 |
| Mechanical industry | 225 | 89 | 73 | 84 | 111 | - | 582 |
| Forestry & Process | 89 | 15 | 23 | 274 | 288 | - | 689 |
| Transport | 37 | 19 | 131 | 53 | 140 | - | 380 |
| Other | 126 | 96 | 51 | 90 | 47 | - | 410 |
| Group items | 1 | 1 | 1 | 1 | 3 | -7 | - |
| Total | 862 | 1,029 | 1,297 | 835 | 863 | -7 | 4,879 |
| Net sales per customers segment | 30 Sep 2023 | ||||||
| --- | --- | --- | --- | --- | --- | --- | --- |
| SEKm | Automation | Electrification | Energy | Industrial Solutions | Process Technology | Group items | Addtech Group |
| Building & Installation | 82 | 139 | 529 | 50 | 47 | - | 847 |
| Data & Telecommunications | 81 | 83 | 191 | 0 | 2 | - | 357 |
| Electronics | 121 | 517 | 113 | 5 | 9 | 0 | 765 |
| Energy | 87 | 307 | 1,265 | 15 | 286 | - | 1,960 |
| Vehicles | 116 | 332 | 28 | 623 | 93 | - | 1,192 |
| Medical technology | 296 | 235 | 15 | 9 | 100 | - | 655 |
| Mechanical industry | 460 | 177 | 154 | 177 | 217 | - | 1,185 |
| Forestry & Process | 181 | 31 | 48 | 578 | 562 | - | 1,400 |
| Transport | 75 | 38 | 275 | 109 | 274 | - | 771 |
| Other | 258 | 191 | 106 | 190 | 91 | - | 836 |
| Group items | 2 | 3 | 1 | 2 | 6 | -14 | - |
| Total | 1,759 | 2,053 | 2,725 | 1,758 | 1,687 | -14 | 9,968 |
| Net sales per customers segment | 30 Sep 2022 | ||||||
| --- | --- | --- | --- | --- | --- | --- | --- |
| SEKm | Automation | Electrification | Energy | Industrial Solutions | Process Technology | Group items | Addtech Group |
| Building & Installation | 24 | 55 | 231 | 18 | 12 | - | 340 |
| Data & Telecommunications | 37 | 49 | 109 | 0 | 0 | - | 195 |
| Electronics | 60 | 186 | 59 | 3 | 7 | 1 | 316 |
| Energy | 58 | 141 | 589 | 5 | 88 | - | 881 |
| Vehicles | 49 | 148 | 14 | 258 | 44 | - | 513 |
| Medical technology | 133 | 165 | 14 | 4 | 49 | - | 365 |
| Mechanical industry | 235 | 83 | 74 | 72 | 105 | - | 569 |
| Forestry & Process | 85 | 11 | 37 | 221 | 220 | - | 574 |
| Transport | 33 | 17 | 103 | 54 | 115 | - | 322 |
| Other | 94 | 102 | 26 | 73 | 48 | 0 | 343 |
| Group items | 2 | 1 | 0 | 1 | 2 | -6 | - |
| Total | 810 | 958 | 1,256 | 709 | 690 | -5 | 4,418 |
| Net sales per customers segment | 30 Sep 2022 | ||||||
| --- | --- | --- | --- | --- | --- | --- | --- |
| SEKm | Automation | Electrification | Energy | Industrial Solutions | Process Technology | Group items | Addtech Group |
| Building & Installation | 47 | 108 | 462 | 38 | 23 | - | 678 |
| Data & Telecommunications | 72 | 97 | 216 | 1 | 0 | - | 386 |
| Electronics | 117 | 367 | 118 | 6 | 14 | 1 | 623 |
| Energy | 112 | 278 | 1,177 | 11 | 172 | - | 1,750 |
| Vehicles | 95 | 290 | 27 | 544 | 85 | - | 1,041 |
| Medical technology | 260 | 324 | 28 | 9 | 95 | - | 716 |
| Mechanical industry | 454 | 162 | 148 | 152 | 205 | - | 1,121 |
| Forestry & Process | 165 | 23 | 73 | 467 | 429 | - | 1,157 |
| Transport | 64 | 34 | 205 | 113 | 224 | - | 640 |
| Other | 182 | 201 | 52 | 155 | 92 | 0 | 682 |
| Group items | 3 | 3 | 1 | 1 | 5 | -13 | - |
| Total | 1,571 | 1,887 | 2,507 | 1,497 | 1,344 | -12 | 8,794 |
ADDTECH AB (PUBL.) INTERIM REPORT 1 APRIL - 30 SEPTEMBER 2023
CONSOLIDATED INCOME STATEMENT, CONDENSED
| 3 months | 6 months | Rolling 12 months | ||||
|---|---|---|---|---|---|---|
| 30 Sep 2023 | 30 Sep 2022 | 30 Sep 2023 | 30 Sep 2022 | 30 Sep 2023 | 31 Mar 2023 | |
| SEKm | ||||||
| Net sales | 4,879 | 4,418 | 9,968 | 8,794 | 19,888 | 18,714 |
| Cost of sales | -3,339 | -3,112 | -6,857 | -6,188 | -13,760 | -13,091 |
| Gross profit | 1,540 | 1,306 | 3,111 | 2,606 | 6,128 | 5,623 |
| Selling expenses | -699 | -607 | -1,412 | -1,220 | -2,785 | -2,593 |
| Administrative expenses | -235 | -204 | -484 | -419 | -987 | -922 |
| Other operating income and expenses | 12 | -6 | -2 | 4 | 53 | 59 |
| Operating profit | 618 | 489 | 1,213 | 971 | 2,409 | 2,167 |
| - as % of net sales | 12.7 | 11.1 | 12.2 | 11.0 | 12.1 | 11.6 |
| Financial income and expenses | -39 | -25 | -125 | -69 | -218 | -162 |
| Profit after financial items | 579 | 464 | 1,088 | 902 | 2,191 | 2,005 |
| - as % of net sales | 11.9 | 10.5 | 10.9 | 10.3 | 11.0 | 10.7 |
| Income tax expense | -132 | -102 | -249 | -196 | -504 | -451 |
| Profit for the period | 447 | 362 | 839 | 706 | 1,687 | 1,554 |
| Profit for the period attributable to: | ||||||
| Equity holders of the Parent Company | 434 | 350 | 812 | 679 | 1,628 | 1,495 |
| Non-controlling interests | 13 | 12 | 27 | 27 | 59 | 59 |
| Earnings per share before dilution, SEK | 1.60 | 1.30 | 3.00 | 2.50 | 6.05 | 5.55 |
| Earnings per share after dilution, SEK | 1.60 | 1.30 | 3.00 | 2.50 | 6.05 | 5.55 |
| Average number of shares after repurchases, '000s | 269,566 | 269,590 | 269,566 | 269,571 | 269,554 | 269,557 |
| Number of shares at end of the period, '000s | 269,566 | 269,426 | 269,566 | 269,426 | 269,566 | 269,565 |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME, CONDENSED
| 3 months | 6 months | Rolling 12 months | ||||
|---|---|---|---|---|---|---|
| 30 Sep 2023 | 30 Sep 2022 | 30 Sep 2023 | 30 Sep 2022 | 30 Sep 2023 | 31 Mar 2023 | |
| SEKm | ||||||
| Profit for the period | 447 | 362 | 839 | 706 | 1,687 | 1,554 |
| Components that will be reclassified to profit for the year | ||||||
| Cash flow hedges | -4 | -12 | 0 | -11 | 12 | 1 |
| Foreign currency translation differences for the period | -148 | 51 | 215 | 197 | 330 | 312 |
| Components that will not be reclassified to profit for the year | ||||||
| Actuarial effects of the net pension obligation | 16 | 21 | 16 | 76 | 22 | 82 |
| Other comprehensive income | -136 | 60 | 231 | 262 | 364 | 395 |
| Total comprehensive income | 311 | 422 | 1,070 | 968 | 2,051 | 1,949 |
| Total comprehensive income attributable to: | ||||||
| Equity holders of the Parent Company | 303 | 409 | 1,037 | 937 | 1,982 | 1,882 |
| Non-controlling interests | 8 | 13 | 33 | 31 | 69 | 67 |
ADDTECH AB (PUBL.) INTERIM REPORT 1 APRIL - 30 SEPTEMBER 2023
CONSOLIDATED BALANCE SHEET, CONDENSED
| SEKm | 30 Sep 2023 | 30 Sep 2022 | 31 Mar 2023 |
|---|---|---|---|
| Goodwill | 4,356 | 3,800 | 3,935 |
| Other intangible non-current assets | 2,578 | 2,381 | 2,377 |
| Property, plant and equipment | 1,275 | 1,151 | 1,179 |
| Other non-current assets | 79 | 77 | 80 |
| Total non-current assets | 8,288 | 7,409 | 7,571 |
| Inventories | 3,465 | 3,302 | 3,326 |
| Current receivables | 3,673 | 3,326 | 3,768 |
| Cash and cash equivalents | 867 | 572 | 606 |
| Total current assets | 8,005 | 7,200 | 7,700 |
| Total assets | 16,293 | 14,609 | 15,271 |
| Total equity | 5,900 | 4,650 | 5,573 |
| Interest-bearing provisions | 199 | 224 | 218 |
| Non-interest-bearing provisions | 702 | 588 | 633 |
| Non-current interest-bearing liabilities | 3,882 | 3,789 | 3,617 |
| Non-current non-interest-bearing liabilities | 20 | 9 | 18 |
| Total non-current liabilities | 4,803 | 4,610 | 4,486 |
| Non-interest-bearing provisions | 110 | 77 | 87 |
| Current interest-bearing liabilities | 1,699 | 1,794 | 1,096 |
| Current non-interest-bearing liabilities | 3,781 | 3,478 | 4,029 |
| Total current liabilities | 5,590 | 5,349 | 5,212 |
| Total equity and liabilities | 16,293 | 14,609 | 15,271 |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY, CONDENSED
| SEKm | 30 Sep 2023 | 30 Sep 2022 | 31 Mar 2023 |
|---|---|---|---|
| Opening balance | 5,573 | 4,259 | 4,259 |
| Exercised, issued and repurchased options | -31 | -47 | -17 |
| Repurchase of treasury shares | - | -31 | -31 |
| Dividend, ordinary | -674 | -485 | -485 |
| Dividend, non-controlling interests | -46 | -29 | -34 |
| Change, non-controlling interests | 37 | 28 | 28 |
| Option debt, acquisition | -29 | -13 | -96 |
| Total comprehensive income | 1,070 | 968 | 1,949 |
| Closing balance | 5,900 | 4,650 | 5,573 |
ADDTECH AB (PUBL.) INTERIM REPORT 1 APRIL - 30 SEPTEMBER 2023
CONSOLIDATED CASH FLOW STATEMENT, CONDENSED
| SEKm | 3 months | 6 months | Rolling 12 months | |||
|---|---|---|---|---|---|---|
| 30 Sep 2023 | 30 Sep 2022 | 30 Sep 2023 | 30 Sep 2022 | 30 Sep 2023 | 31 Mar 2023 | |
| Profit after financial items | 579 | 464 | 1,088 | 902 | 2,191 | 2,005 |
| Adjustment for items not included in cash flow | 160 | 182 | 433 | 366 | 774 | 707 |
| Income tax paid | -137 | -108 | -193 | -213 | -454 | -474 |
| Changes in working capital | 1 | -295 | -178 | -531 | 26 | -327 |
| Cash flow from operating activities | 603 | 243 | 1,150 | 524 | 2,537 | 1,911 |
| Net investments in non-current assets | -38 | -27 | -69 | -62 | -190 | -183 |
| Acquisitions and disposals | -183 | -204 | -717 | -982 | -939 | -1,204 |
| Cash flow from investing activities | -221 | -231 | -786 | -1,044 | -1,129 | -1,387 |
| Dividend paid to shareholders | -674 | -485 | -674 | -485 | -674 | -485 |
| Repurchase of own shares/change of options | -30 | -86 | -31 | -78 | -1 | -48 |
| Other financing activities | 328 | 597 | 584 | 1,208 | -462 | 162 |
| Cash flow from financing activities | -376 | 26 | -121 | 645 | -1,137 | -371 |
| Cash flow for the period | 6 | 38 | 243 | 125 | 271 | 153 |
| Cash and cash equivalents at beginning of period | 879 | 540 | 606 | 437 | 572 | 437 |
| Exchange differences on cash and cash equivalents | -18 | -6 | 18 | 10 | 24 | 16 |
| Cash and cash equivalents at end of period | 867 | 572 | 867 | 572 | 867 | 606 |
FAIR VALUES ON FINANCIAL INSTRUMENTS
| SEKm | 30 Sep 2023 | 31 Mar 2023 | ||||
|---|---|---|---|---|---|---|
| Carrying amount | Level 2 | Level 3 | Carrying amount | Level 2 | Level 3 | |
| Derivatives - fair value, hedge instruments | 9 | 9 | - | 9 | 9 | - |
| Derivatives - fair value through profit | 10 | 10 | - | 9 | 9 | - |
| Total financial assets at fair value per level | 19 | 19 | - | 18 | 18 | - |
| Derivatives - fair value, hedge instruments | 3 | 3 | - | 3 | 3 | - |
| Derivatives - fair value through profit | 27 | 27 | - | 38 | 38 | - |
| Contingent considerations - fair value through profit | 331 | - | 331 | 295 | - | 295 |
| Total financial liabilities at fair value per level | 361 | 30 | 331 | 336 | 41 | 295 |
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 2023 | 31 Mar 2023 |
|---|---|---|
| Opening balance | 295 | 349 |
| Acquisitions during the year | 152 | 150 |
| Reversed through profit or loss | 0 | -40 |
| Consideration paid | -139 | -192 |
| Interest expenses | 7 | 11 |
| Exchange differences | 16 | 17 |
| Closing balance | 331 | 295 |
ADDTECH AB (PUBL.) INTERIM REPORT 1 APRIL - 30 SEPTEMBER 2023
KEY FINANCIAL INDICATORS
| 12 months ending | |||||
|---|---|---|---|---|---|
| 30 Sep 2023 | 31 Mar 2023 | 30 Sep 2022 | 31 Mar 2022 | 31 Mar 2021 | |
| Net sales, SEKm | 19,888 | 18,714 | 16,296 | 14,038 | 11,336 |
| EBITDA, SEKm | 3,171 | 2,872 | 2,428 | 2,077 | 1,501 |
| EBITA, SEKm | 2,811 | 2,540 | 2,128 | 1,803 | 1,251 |
| EBITA-margin, % | 14.1 | 13.6 | 13.1 | 12.8 | 11.0 |
| Operating profit, SEKm | 2,409 | 2,167 | 1,789 | 1,501 | 989 |
| Operating margin, % | 12.1 | 11.6 | 11.0 | 10.7 | 8.7 |
| Profit after financial items, SEKm | 2,191 | 2,005 | 1,680 | 1,433 | 937 |
| Profit for the period, SEKm | 1,687 | 1,554 | 1,310 | 1,117 | 729 |
| Working capital | 4,183 | 3,855 | 3,213 | 2,618 | 2,416 |
| Return on working capital (P/WC), % | 67 | 66 | 66 | 69 | 52 |
| Return on equity, % | 31 | 32 | 31 | 30 | 23 |
| Return on capital employed, % | 23 | 22 | 21 | 20 | 15 |
| Equity ratio, % | 36 | 36 | 32 | 34 | 35 |
| Financial debt, SEKm | 4,913 | 4,325 | 5,235 | 4,061 | 3,134 |
| Debt / equity ratio, multiple | 0.8 | 0.8 | 1.1 | 1.0 | 0.9 |
| Financial debt / EBITDA, multiple | 1.5 | 1.5 | 2.2 | 2.0 | 2.1 |
| Net debt excl. pensions, SEKm | 4,714 | 4,107 | 5,011 | 3,747 | 2,798 |
| Net debt, excl. pensions / equity ratio, multiple | 0.8 | 0.7 | 1.1 | 0.9 | 0.8 |
| Interest coverage ratio, multiple | 10.6 | 13.7 | 18.5 | 22.4 | 15.8 |
| Average number of employees | 3,966 | 3,781 | 3,553 | 3,317 | 3,068 |
| Number of employees at end of the period | 4,155 | 3,911 | 3,805 | 3,556 | 3,133 |
KEY FINANCIAL INDICATORS PER SHARE
| SEK | 12 months ending | ||||
|---|---|---|---|---|---|
| 30 Sep 2023 | 31 Mar 2023 | 30 Sep 2022 | 31 Mar 2022 | 31 Mar 2021 | |
| Earnings per share before dilution | 6.05 | 5.55 | 4.65 | 4.00 | 2.60 |
| Earnings per share after dilution | 6.05 | 5.55 | 4.60 | 3.95 | 2.60 |
| Cash flow from operating activities per share | 9.40 | 7.10 | 4.50 | 4.15 | 5.60 |
| Shareholders' equity per share | 20.35 | 19.25 | 15.95 | 14.60 | 11.95 |
| Share price at the end of the period | 175.20 | 192.30 | 147.40 | 182.00 | 130.00 |
| Average number of shares after repurchases, '000s | 269,554 | 269,557 | 269,527 | 269,400 | 269,051 |
| Average number of shares adjusted for repurchases and dilution, '000s | 269,667 | 269,723 | 269,819 | 270,346 | 269,969 |
| Number of shares outstanding at end of the period, '000s | 269,566 | 269,565 | 269,426 | 269,528 | 269,275 |
For definitions of key financial indicators, see page 18-20.
ADDTECH AB (PUBL.) INTERIM REPORT 1 APRIL - 30 SEPTEMBER 2023
PARENT COMPANY INCOME STATEMENT, CONDENSED
| SEKm | 3 months | 6 months | Rolling 12 months | |||
|---|---|---|---|---|---|---|
| 30 Sep 2023 | 30 Sep 2022 | 30 Sep 2023 | 30 Sep 2022 | 30 Sep 2023 | 31 Mar 2023 | |
| Net sales | 23 | 21 | 47 | 41 | 89 | 83 |
| Administrative expenses | -35 | -28 | -71 | -56 | -131 | -116 |
| Operating profit/loss | -12 | -7 | -24 | -15 | -42 | -33 |
| Interest income and expenses and similar items | 49 | -5 | 23 | -35 | 767 | 709 |
| Profit after financial items | 37 | -12 | -1 | -50 | 725 | 676 |
| Appropriations | - | - | - | - | 338 | 338 |
| Profit before taxes | 37 | -12 | -1 | -50 | 1,063 | 1,014 |
| Income tax expense | -8 | 2 | -1 | 10 | -66 | -55 |
| Profit for the period | 29 | -10 | -2 | -40 | 997 | 959 |
| Total comprehensive income | 29 | -10 | -2 | -40 | 997 | 959 |
PARENT COMPANY BALANCE SHEET, CONDENSED
| SEKm | 30 Sep 2023 | 30 Sep 2022 | 31 Mar 2023 |
|---|---|---|---|
| Intangible non-current assets | 1 | 1 | 1 |
| Property, plant and equipment | 0 | 0 | 0 |
| Non-current financial assets | 5,810 | 4,524 | 5,503 |
| Total non-current assets | 5,811 | 4,525 | 5,504 |
| Current receivables | 1,261 | 1,488 | 1,698 |
| Cash and bank balances | 32 | 0 | - |
| Total current assets | 1,293 | 1,488 | 1,698 |
| Total assets | 7,104 | 6,013 | 7,202 |
| Restricted equity | 69 | 69 | 69 |
| Unrestricted equity | 394 | 72 | 1,100 |
| Total equity | 463 | 141 | 1,169 |
| Untaxed reserves | 391 | 302 | 391 |
| Provisions | 14 | 13 | 14 |
| Non-current liabilities | 3,518 | 3,286 | 3,410 |
| Current liabilities | 2,718 | 2,271 | 2,218 |
| Total equity and liabilities | 7,104 | 6,013 | 7,202 |
ADDTECH AB (PUBL.) INTERIM REPORT 1 APRIL - 30 SEPTEMBER 2023
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 - 30 SEPTEMBER 2023
ADDTECH AB (PUBL.) INTERIM REPORT 1 APRIL - 30 SEPTEMBER 2023
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.
19
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 - 30 SEPTEMBER 2023
RECONCILIATION TABLES ALTERNATIVE PERFORMANCE MEASURES
| EBITA and EBITDA | |||||
|---|---|---|---|---|---|
| 12 months ending | |||||
| Addtech Group, SEKm | 30 Sep 2023 | 31 Mar 2023 | 30 Sep 2022 | 31 Mar 2022 | 31 Mar 2021 |
| Operating profit according to Interim report | 2,409 | 2,167 | 1,789 | 1,501 | 989 |
| Amortization, intangible assets (+) | 402 | 373 | 339 | 302 | 262 |
| EBITA | 2,811 | 2,540 | 2,128 | 1,803 | 1,251 |
| Depreciation, tangible assets (+) | 360 | 332 | 300 | 274 | 250 |
| EBITDA | 3,171 | 2,872 | 2,428 | 2,077 | 1,501 |
| Working capital and return on working capital (P/WC) | |||||
| --- | --- | --- | --- | --- | --- |
| 12 months ending | |||||
| Addtech Group, SEKm | 30 Sep 2023 | 31 Mar 2023 | 30 Sep 2022 | 31 Mar 2022 | 31 Mar 2021 |
| EBITA (12 months rolling) | 2,811 | 2,540 | 2,128 | 1,803 | 1,251 |
| Inventory, yearly average (+) | 3,411 | 3,154 | 2,613 | 2,058 | 1,722 |
| Accounts receivables, yearly average (+) | 3,043 | 2,876 | 2,479 | 2,078 | 1,756 |
| Accounts payables, yearly average (-) | -2,271 | -2,175 | -1,879 | -1,518 | -1,062 |
| Working capital (average) | 4,183 | 3,855 | 3,213 | 2,618 | 2,416 |
| Return on working capital (P/WC) (%) | 67% | 66% | 66% | 69% | 52% |
| Acquired- and organic growth | |||||
| --- | --- | --- | --- | --- | --- |
| 3 months | 6 months | ||||
| 30 Sep | 30 Sep | 30 Sep | |||
| Addtech Group | 2023 | 2022 | 2023 | ||
| Acquired growth (SEKm,%) | 208 | (4%) | 422 | (13%) | 447 |
| Organic growth (SEKm,%) | 40 | (1%) | 605 | (19%) | 342 |
| Divestments (SEKm,%) | - | (-) | - | (-%) | - |
| Exchange rate effect (SEKm,%) | 213 | (5%) | 134 | (4%) | 385 |
| Total growth (SEKm,%) | 461 | (10%) | 1,161 | (36%) | 1,174 |
| Interest coverage ratio | 12 months ending | ||||
| Addtech Group | 30 Sep 2023 | 31 Mar 2023 | |||
| Profit after financial items, SEKm | 2,191 | 2,005 | |||
| Interest expenses and bank charges, SEKm (+) | 229 | 158 | |||
| Total | 2,420 | 2,163 | |||
| Interest coverage ratio, multiple | 10.6 | 13.7 | |||
| Net debt excl. pensions and net debt excl. pensions/equity ratio | |||||
| Addtech Group | 30 Sep 2023 | 31 Mar 2023 | |||
| Financial net debt, SEKm | 4,913 | 4,325 | |||
| Pensions, SEKm (-) | -199 | -218 | |||
| Net debt excluding pensions, SEKm | 4,714 | 4,107 | |||
| Equity, SEKm | 5,900 | 5,573 | |||
| Net debt to Equity ratio (excluding pensions), multiple | 0.8 | 0.7 | |||
| Capital employed and return on capital employed | 12 months ending | ||||
| Addtech Group, SEKm | 30 Sep 2023 | 31 Mar 2023 | |||
| Profit after financial items | 2,191 | 2,005 | |||
| Financial expenses (+) | 298 | 210 | |||
| Profit after financial items plus financial expenses | 2,489 | 2,215 | |||
| Total assets, yearly average (+) | 15,519 | 14,280 | |||
| Non-interest-bearing liabilities, yearly average (-) | -3,785 | -3,581 | |||
| Non-interest-bearing provisions, yearly average (-) | -734 | -655 | |||
| Capital employed | 11,000 | 10,044 | |||
| Return on capital employed, % | 23% | 22% |
ADDTECH AB (PUBL.) INTERIM REPORT 1 APRIL - 30 SEPTEMBER 2023
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 the manufacturing 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 150 companies in about 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 with added technical and financial value by being a skilled and professional partner for customers and manufacturers.
We build shareholder value through:
- our 150 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 2023