Other Financial information

Profitability, financial position and cash flow

The return on equity at the end of the period was 29 percent (29), and return on capital employed was 21 percent (22). Return on working capital P/WC (EBITA in relation to working capital) amounted to 53 percent (53).

At the end of the period the equity ratio amounted to 35 percent (36). Equity per share, excluding non-controlling interest, totalled SEK 33.05 (27.30). The Group's net debt at the end of the period amounted to SEK 1,808 million (1,232), excluding pension liabilities of SEK 252 million (240). The net debt/equity ratio, calculated on the basis of net debt excluding provisions for pensions, amounted to 0.8 (0.7).

Cash and cash equivalents consisting of cash and bank equivalents and approved but non-utilised credit facilities amounted to SEK 477 million (528) at 31 December 2018.

Cash flow from operating activities amounted to SEK 320 million (388) during the period. Company acquisitions and disposals including settlement of contingent consideration regarding acquisitions implemented in previous years amounted to SEK 555 million (381). Investments in non-current assets totalled SEK 49 million (35) and disposal of non-current assets amounted to SEK 10 million (3). Dividend from associated company amounted to SEK 2 million (4). Repurchase of treasury shares amounted to SEK 38 million (31) and repurchase of call options amounted to SEK 11 million (5). Exercised and issued call options totalled SEK 27 million (33). Dividends paid to the shareholders of the Parent Company totalled SEK 269 million (235), corresponding to SEK 4.00 (3.50) per share. The dividend was paid out in the second quarter.


At the end of the period, the number of employees was 2,684 compared to 2,358 at the beginning of the financial year. During the period, completed acquisitions and disposal resulted in a net increase of the number of employees by 258. The average number of employees in the latest 12-month period was 2,501.

Ownership structure

At the end of the period the share capital amounted to SEK 51.1 million.

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Class of shares Number of shares Number of votes Percentage of capital Percentage of votes
Class A shares, 10 votes per share 3,229,500 32,295,000 4.7% 33.2%
Class B shares, 1 vote per share 64,968,996 64,968,996 95.3% 66.8%
Total number of shares before repurchases 68,198,496 97,263,996 100.0% 100.0%
Of which repurchased class B shares 1,189,972   1.7% 1.2%
Total number of shares after repurchases 67,008,524      

Addtech has four outstanding call option programmes, see table below. Call options issued on repurchased shares entail a dilution effect of about 0.2 percent during the latest 12-month period. Addtech's own shareholding is estimated to meet the needs of the outstanding call option programmes.

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Outstanding programme Number of options Corresponding number of shares Proportion of total shares Initial exercise price Adjusted exercise price Expiration period
2018/2022 300,000 300,000 0.4% 232.90 - 6 Sep 2021 - 3 Jun 2022
2017/2021 300,000 300,000 0.4% 178.50 - 14 Sep 2020 - 4 Jun 2021
2016/2020 300,000 300,000 0.4% 159.00 - 16 Sep 2019 - 5 Jun 2020
2015/2019 238,600 293,478 0.4% 154.50 125.10 17 Sep 2018 - 3 Jun 2019
Totat 1,138,600 1,193,478        


Acquisitions and disposal

During the period 1 April to 30 September 2018, the following acquisitions have been completed; Synthecs-group, Scanwill Fluid Power ApS and Willtech ApS, Fibersystem AB and Diamond Point International (Europe) Ltd to become part of the Components business area, Xi Instrument AB, Duelco A/S, Prisma Teknik AB and Prisma Light AB to become part of the Energy business area, KRV AS, TLS Energimätning AB and Nordautomation Oy to become part of the Industrial Process business area and Power Technic ApS to become part of the Power Solutions business area. The Group has also sold Solar Supply System AB, formerly part of the Power Solutions Business Area.

On 4 October, Wood Recycling Sweden AB, Sweden, was acquired to become part of  the Industrial Process business area. Wood Recycling designs, constructs and delivers wearing and spare parts for bark hoggers in the Swedish market. The company has sales of about SEK 7 million and 2 employees.

The purchase price allocation calculations for the acquisitions completed during the period 1 April – 31 December 2017 have now been finalised. No significant adjustments have been made to the calculations. Acquisitions completed as of the 2017/2018 financial year are distributed among the Group’s business areas as follows:

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Acquisitions (disposals) Closing Net sales, SEKm* Number of employees* Business Area  
Dovitech A/S, Denmark April, 2017 100 5 Components  
Craig & Derricott Holdings Ltd, Great Britain April, 2017 110 90 Power Solutions  
Altitech A/S, Denmark June, 2017 15 5 Components  
(Batteriunion i Järfälla AB, Sweden) (June, 2017) (140) (16) (Power Solutions)  
Mobile Control Systems Companies, Belgium October, 2017 50 17 Power Solutions  
Ingenjörsfirma Pulsteknik AB, Sweden November, 2017 50 10 Components  
Sensor ECS A/S, Denmark November, 2017 155 9 Components  
Fintronic Oy (assets and liabilities), Finland December, 2017 7 1 Components  
STIGAB Stig Ödlund AB, Sweden December, 2017 115 12 Components  
Finn-Jiit Oy, Finland January, 2018 40 10 Components  
2 Wave Systems AB, Sweden January, 2018 16 2 Components  
IPAS AS, Norway January, 2018 40 10 Energy  
Synthecs Group, Netherlands April, 2018 145 50 Components  
Xi Instrument AB, Sweden April, 2018 13 2 Energy  
KRV AS, Norway April, 2018 55 27 Industrial Process  
Scanwill Fluid Power ApS, & Willtech ApS, Denmark April, 2018 15 4 Components  
Duelco A/S, Denmark July, 2018 150 30 Energy  
Prisma Teknik AB and Prisma Light AB, Sweden July, 2018 70 27 Energy  
Fibersystem AB, Sweden July, 2018 140 12 Components  
TLS Energimätning AB, Sweden July, 2018 50 9 Industrial Process  
Diamond Point International (Europe) Ltd, Great Britain July, 2018 40 9 Components  
Power Technic ApS, Denmark July, 2018 50 6 Power Solutions  
(Solar Supply Sweden AB, Sweden) (August, 2018) (80) (5) (Power Solutions)  
Nordautomation Oy, Finland September, 2018 155 85 Industrial Process  
Wood Recycling Sweden AB, Sweden October, 2018 7 2 Industrial Process  
Nylund Industrial Electronics (assets and liabilities), Finland January, 2019 35 3 Components  
Birepo A/S, Denmark January, 2019 35 10 Components  
* Refers to assessed condition at the time of acquisition and disposal, respectively, on a full-year basis.  


If all the acquisitions had been completed on 1 April 2018, their impact would have been an estimated SEK 606 million on Group net sales, about SEK 37 million on operating profit and about SEK 26 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 72 million. The contingent purchase considerations fall due for payment within three years and the outcome is subject to a maximum of SEK 99 million. If the conditions are not fulfilled, the outcome may fall within the range of SEK 0-99 million.

Transaction costs for acquisitions that resulted in an ownership transfer during the period, amounted to SEK 6 million (6) and are reported under Selling expenses.

Revaluation of contingent consideration had a positive net effect of SEK 11 million (8) during the period. The impact on profits are reported under Other operating income and Other operating expenses, respectively.

According to the preliminary acquisition analyses, the assets and liabilities included in the acquisitions were as follows, during the period:

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  Carrying amount at acquisition date Adjustment to fair value Fair value
Intangible non-current assets 9 286 295
Other non-current assets 60 2 62
Inventories 59 - 59
Other current assets 262 - 262
Deferred tax liability/tax asset -4 -64 -68
Other liabilities -218 -14 -232
Acquired net assets 168 210 378
Goodwill     281
Non-controlling interests     -
Consideration 1)     659
Less: cash and cash equivalents in acquired businesses     -91
Less: consideration not yet paid     -70
Effect on the Group’s cash and cash equivalents     498
1) The consideration is stated excluding acquisition expenses.

Parent Company

Parent Company net sales amounted to SEK 45 million (44) during the period and profit after financial items was SEK -12 million (-13). Net investments in non-current assets were SEK 0 million (0). The Parent Company's net financial debt was SEK 150 million (43) at the end of the period.


Other Disclosures

Accounting policies

This interim report was prepared in accordance with IFRS and IAS 34 Interim Financial Reporting. Disclosures under IAS 34.16A are made not only in the financial statements, with associated notes, but also in other parts of the interim report. The interim report for the parent company was prepared in accordance with the Swedish Annual Accounts Act and the Swedish Securities Market Act, which complies with recommendation RFR 2 Accounting for Legal Entities, issued by the Swedish Financial Reporting Board. The same accounting policies and basis for calculations as in the latest annual report have been applied in this interim report, with the exception of the amended accounting policies described below.

IFRS 9, Financial Instruments, deals with classification, measurement and recognition of financial assets and liabilities and introduces new rules for hedge accounting. It has been applied with effect from 1 April 2018. IFRS 9 introduces, for example, a new model for recognition of impairment losses that is based on expected credit losses and that takes forward-looking information into account. 

During 2017/2018, Addtech analysed the impact, if any, on introduction of the new standard. The judgement is that the new impairment recognition model had no material impact on the Group’s financial position, based on historical information regarding bad debts. Because the Group does not use hedge accounting, the relevant parts of IFRS 9 do not affect Addtech's financial statements.

IFRS 15, Revenue from Contracts with Customers, introduces new requirements for recognition of revenue. The Group began to apply the standard as of 1 April 2018 with the forward-looking retroactive transition method under IFRS 15. An analysis of the impact of IFRS 15 in the Group was carried out in 2017/2018. The conclusion from the analysis was that IFRS 15 will not have any impact on accrual accounting of the Group’s revenue. IFRS 15 introduces increased disclosure requirements – see table Net sales by the subsidiaries geographical location, under the heading Disaggregation of revenue. This table presents a disaggregation of the Group’s income and included for the first time in the interim report for the first quarter of 2018/2019. 

At the end of the interim report period, the Group’s assessment is that no changes are necessary in the analysis relating to IFRS 9 and IFRS 15 for presentation in the 2017/2018 Annual Report.

IFRS 16 Leases will be applied as of 1 April 2019. Work on identifying and evaluating current leases and the impact of the new standard is in progress. When the standard enters into effect, Addtech will apply the modified retrospective transition method.         

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 of the performance measures that Addtech uses, please see page 18.

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 four operating subsidiaries within the UK as well as a few other subsidiaries doing business with the UK. The effects of Brexit are to this date unknown, but all affected subsidiaries are closely monitoring the developments. Addtech Group’s total exposure to possible negative effects from Brexit are not considered material. Beside this, risk and uncertainty factors are the same as in previous periods, please see section Risks and uncertainties (page 38-40) in the annual report for 2017/2018 for further details. The Parent Company is indirectly affected by the above risks and uncertainty factors due to its role in the organisation.


Transactions with related parties

No transactions between Addtech and related parties that have significantly affected the Group's position and earnings have taken place during the period.

Seasonal effects

Addtech's sales of high-tech products and solutions in the manufacturing industry and infrastructure are not subject to major seasonal variations. The number of production days and customers' demand and willingness to invest can vary over the quarters.

Nomination committee

The 2018 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 2018, to serve with the Chairman on the nomination committee. In accordance with the above, the committee comprises these appointed members: Anders Börjesson (Chairman of the Board), Tom Hedelius, Åsa Nisell (appointed by Swedbank Robur Fonder), Mats Gustafsson (appointed by Lannebo Fonder) and Johan Strandberg (appointed by SEB Investmant Management). Information on how to contact the committee is available on the Addtech website.

Events after the end of the period

On 2 January, the assets of Nylund Industrial Electronics, Finland, were acquired to become part of the Components business area and part of an existing company. The business has sales of about MEUR 3.4 million and 3 employees.

On 29 January, Birepo A/S, Denmark, was acquired to become part of the Components business area. Birepo develops and delivers customized locks and security solutions under its own brand. The business is mainly focused on industrial applications, infrastructure, energy and transportation. The company has sales of about DKK 25 million and 10 employees.

Preliminary purchase price allocations has not yet been completed. 


Stockholm 7 February 2019

Niklas Stenberg
CEO and President


This report has not been subject to review by the company's auditor.




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 7 February 2019.

Future information

2019-05-15    Year-end report 1 April 2018 - 31 March 2019
2019-07-12    Interim report 1 April - 30 June 2019
2019-08-29    Annual General Meeting 2019
                     will be held at Näringslivets hus, Storgatan 19, Stockholm at 2.00 p.m.

The Group's annual report for 2018/2019 will be published on Addtech's website in July 2019

For further information, please contact:

Niklas Stenberg, CEO and President, +46 702 679 499
Malin Enarson, CFO, +46 705 979 473

Latest updated: 2/6/2019 7:47:11 PM by eva.skoglund@addtech.com