Other Financial information

Profitability, financial position and cash flow

The return on equity at the end of the period was 29 percent (26), and return on capital employed was 22 percent (20). Return on working capital P/WC (EBITA in relation to working capital) amounted to 53 percent (50).

At the end of the period the equity ratio amounted to 36 percent (39). Equity per share, excluding non-controlling interest, totalled SEK 27.30 (23.65). The Group's net debt at the end of the period amounted to SEK 1,232 million (753), excluding pension liabilities of SEK 240 million (217). The net debt/equity ratio, calculated on the basis of net debt excluding provisions for pensions, amounted to 0.7 (0.5).

Cash and cash equivalents consisting of cash and bank equivalents and approved but non-utilised credit facilities amounted to SEK 528 million (950) at 31 December 2017.

Cash flow from operating activities amounted to SEK 388 million (391) during the period. Company acquisitions and disposals including settlement of contingent consideration regarding acquisitions implemented in previous years amounted to SEK 381 million (152). Investments in non-current assets totalled SEK 35 million (44) and disposal of non-current assets amounted to SEK 3 million (3). Dividend from associated company amounted to SEK 4 million (3). Repurchase of treasury shares amounted to SEK 31 million (40) and repurchase of call options amounted to SEK 5 million (6). Exercised and issued call options totalled SEK 33 million (7). Dividends paid to the shareholders of the Parent Company totalled SEK 235 million (218), corresponding to SEK 3.50 (3.25) per share. The dividend was paid out in the second quarter.


At the end of the period, the number of employees was 2,307, compared to 2,176 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 133. The average number of employees in the latest 12-month period was 2,238.

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 97,263,996 100 100.0
Of which repurchased class B shares 1,243,291   1.8 1.3
Total number of shares after repurchases 66,955,205      

Addtech has four outstanding call option programmes, see table below. Call options issued on repurchased shares entail a dilution effect of about 0.3 percent during the latest 12-month period. Addtech's own shareholdings are 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
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 350,000 430,500 0.6% 154.50 125.10 17 Sep 2018 - 3 Jun 2019
2014/2018 208,800 256,824 0.4% 116.70 94.50 17 Sep 2017 - 1 Jun 2018
Total 1,158,800 1,287,324        


Acquisitions and disposal

During the period 1 April to 30 September 2017, the following acquisitions have been completed; Dovitech A/S and Altitech A/S to become part of the Components business area and Craig & Derricott Holdings Ltd to become part of the Power Solutions business area. The Group has also sold Batteriunion i Järfälla AB, formerly part of the Power Solutions Business Area.

On 9 October 2017, The Mobile Control Systems Companies, Belgium, were acquired to become part of the Power Solutions business area. Mobile Control Systems develops and supplies electronic throttle- and transmission controls for on and off highway vehicle OEMs. The companies have sales of around EUR 5 million, and 17 employees.

On 1 November 2017, Ingenjörsfirma Pulsteknik AB, Sweden, was acquired to become part of the Components business area. Pulsteknik delivers products and solutions in the field of sensor, control and drives. The business is mainly focused on the Nordic OEM and automation market. The company has sales of around SEK 50 million, and ten employees.

On 7 November 2017, Sensor ECS A/S, Denmark, was acquired to become part of the Components business area. Sensor ECS delivers embedded industrial and medical computer systems. The business is mainly focused on the Nordic OEM industry and health care. The company has sales of around DKK 120 million, and nine employees.

On 1 December 2017, the assets of Fintronic OY, Finland, were acquired to become part of the Components business area and part of an existing company. The business has sales of around SEK 7 million and one employee.

On 1 December 2017, STIGAB Stig Ödlund AB, Sweden, was acquired to become part of the Components business area. STIGAB delivers products and solutions in the field of joysticks, sensors, switches and other electromechanical components. The business is mainly focused on the Nordic OEM market. The company has sales of around SEK 115 million, and twelve employees.

If all the acquisitions had been completed on 1 April 2017, their impact would have been an estimated SEK 450 million on Group net sales, about SEK 42 million on operating profit and about SEK 30 million on profit after tax for the period.

Acquisitions and disposals (information in parentheses) completed as of the 2016/2017 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
Sammet Dampers Oy, Finland April, 2016 45 12 Industrial Process
Poryan China Company Ltd, China April, 2016 50 22 Power Solutions
E.T.S. Portsmouth Ltd, Great Britain April, 2016 100 35 Energy
Elektro-Tukku Oy, Finland May, 2016 8 3 Components
Penlink AB, Sweden October, 2016 25 5 Components
Itek AS, Norway November, 2016 65 13 Industrial Process
Carmac Inc (assets and liabilities), USA December. 2016 10 2 Power Solutions
Sensor Companies, Sweden January, 2017 160 30 Components
Vallentin Elektronik  A/S, Denmark January, 2017 20 4 Components
EX-Tekniikka Oy, Finland March, 2017 20 3 Components
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
* Refers to assessed condition at the time of acquisition and disposal, respectively, on a full-year basis.

The amount of contingent consideration depends on future results achieved in the companies. The estimated outcome of the year's acquisitions amounts to SEK 146 million, which is due for payment within one to four years. The amounts are estimated to be able to reach a maximum total of SEK 178 million. Of the contingent consideration not yet paid for acquisitions during the period, the discounted value amounts to SEK 138 million.

Transaction costs for acquisitions that resulted in an ownership transfer during the period, amounted to SEK 6 million (7) and are reported under Selling expenses.

During the period contingent consideration was net revalued by SEK 8 million (5). 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:

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  Carrying amount at acquisition date Adjustment to fair value Fair value
Intangible non-current assets 0 300 300
Other non-current assets 9 - 9
Inventories 54 - 54
Other current assets 171 - 171
Deferred tax liability/tax asset -1 -65 -66
Other liabilities -148 -8 -156
Acquired net assets 85 227 312
Goodwill     292
Non-controlling interests     -
Consideration 1)     604
Less: cash and cash equivalents in acquired businesses     -41
Less: consideration not yet paid     -184
Effect on the Group’s cash and cash equivalents     379
1) The consideration is stated excluding acquisition expenses.

Parent Company

Parent Company net sales amounted to SEK 44 million (39) during the period and profit after financial items was SEK -13 million (-11). Net investments in non-current assets were SEK 0 million (0). The Parent Company's net financial debt was SEK 43 million (89) at the end of the period.

Other Disclosures

Accounting policies

This interim report was prepared as per International Financial Reporting Standards (IFRS) and IAS 34 Interim Financial Reporting. The accounting policies and basis for calculations applied in the latest annual report were also used here. The interim report for the parent company was prepared in accordance with the Swedish Annual Accounts Act and the Securities Market Act, in compliance with recommendation RFR 2 Accounting for Legal Entites, of the Swedish Financial Reporting Board. The new and revised IFRS standards and IFRIC interpretations that come into force as of the 2017/2018 financial year have had no material effect on the Group's financial reports. New IFRS standards will come into force in the 2018/2019 financial year. Work with the new standards introduced in 2018, IFRS 9 Financial Instruments and IFRS 15 Revenue from contracts with customers, is proceeding according to plan. Our conclusion is that these standards will not have any significant effects that affect the balance sheet and income statement. For more information, see Note 1 Accounting and valuation policies in the annual report for 2016/2017. Disclosure in accordance with IAS 34.16A is presented both in the financial statements and related notes, as well as in other parts of the interim report.

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 17.

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. Risk and uncertainty factors are the same as in previous periods, please see section Risks and uncertainties (page 22-25) in the annual report for 2016/2017 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 2017 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 2017, 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), Martin Wallin (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.

Significant events after the end of the period

On 2 January 2018, Finn-Jiit Oy, Finland, was acquired to become part of the Components business area. Finn-Jiit delivers customised subsystems in the field of machine components and flow technology. The business is mainly focused on the Nordic OEM market. The company has sales of around EUR 4 million, and ten employees.

On 2 January 2018, 2 Wave Systems AB, Sweden, was acquired to become part of the Components business area. 2 Wave Systems offers fibre and copper testing tools, and primarily has installation and telecom companies and network owners as customers. The company has sales of around SEK 16 million, and two employees. The operations will become part of an existing company.

On 3 January 2018, IPAS AS, Norway, was acquired to become part of the Energy business area. IPAS is a well established supplier of products and solutions within professional lighting to in Norway. The company is established in the segments industrial lighting, outdoor lighting and indoor lighting. The products are sold to installers, wholesalers, industry and municipalities. The company has sales of around NOK 40 million, and ten employees.

Stockholm 6 February 2018

Johan Sjö
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 6 February 2018.

Future information

2018-05-15    Year-end report 1 April 2017 - 31 March 2018
2018-07-13    Interim report 1 April - 30 June 2018
2018-08-30   Annual General Meeting 2018 will be held at IVA, Grev Turegatan 16, Stockholm at 16.00
The Group's annual report for 2017/2018 will be published on Addtech's website in July 2018

For further information, please contact:

Johan Sjö, CEO and President, +46 8 470 49 00
Christina Kassberg, CFO, +46 8 470 49 00

Latest updated: 2/6/2018 8:47:27 AM by alexander.paziraei@oxp.se