Economic value added

Economic stability and strength are fundamental requirements for investing in sustainable business development. In an ever-changing world, we must constantly develop our business. Addtech’s overarching vision is to be a leader in value-adding technology trading by being the most competent and long-term partner to our customers and suppliers. This creates requirements that can be summarised in terms of profitability, growth and development.

AN IMPORTANT COMPETITIVE ADVANTAGE

Global and local demand for lower emissions and greater sustainability in society is making sustainable products and solutions into a competitive asset in the technology trading market We aim to be a better choice than our competitors and focus actively on meeting this demand.

With a structured sustainability programme, we are developing the business to make it both stronger and more sustainable, for example by highlighting the potential for savings and improvements, as well as the risks. We are also meeting this demand by ensuring that our companies are committed to developing and offering solutions that increase customers’ energy efficiency and reduce their environmental impact. By continuing to develop sustainable solutions for our customers, we increase our competitiveness while helping to bring about a sustainable society.

Long-term profitable growth

Growth is the basis of long-term profitability and enables development of operations. Therefore, growth is a primary fundamental requirement for securing our survival in the long term.

Growth is measured as earnings growth, or the earnings expansion target. This is a long-term target measured over a business cycle, in which period average annual earnings growth shall be 15 percent. Growth is achieved through strategic efforts to focus on expansive markets, concentrated on leading suppliers and a constant customer focus.

The profitability target for each subsidiary is a minimum of 45 percent, measured using the relationship between operating profit (P) and working capital (WC). The P/WC model encourages high operating profit and low levels of tied-up capital, which combined with the growth target of 15 percent, enables self-funded long‐term profitable growth. Constant development is required to generate earnings growth and high profitability.

The Addtech share

Addtech shares are listed on Nasdaq Stockholm. Being a listed company places rigorous demands on transparency, value growth and a long term approach. Since their listing in September 2001 until 31 April 2017, the total return on the shares until 31 March 2017 has averaged 18 percent per year. The OMX Stockholm index on the Nasdaq OMX Stockholm Exchange increased by 6 percent in the corresponding period. In addition to the growth in the share’s value, we also deliver an annual return to our shareholders in the form of a dividend.