Strategic acquisition creates leading PLM supplier in Europe

Summary of the second quarter, April – June 2015

Net sales amounted to SEK 387.3 M (371.3), up 4 percent.
EBITA amounted to SEK 25.0 M (28.3), an EBITA margin of 6.5 percent (7.6). 1)
Operating profit amounted to SEK 15.2 M (19.5), an operating margin of 3.9 percent (5.3). 1)
Profit after tax amounted to SEK 8.7 M (14.4).
Earnings per share after dilution amounted to SEK 0.29 (0.49).
Cash flow from operating activities amounted to SEK 23.3 M (13.9).
The Swedish Social Insurance Inspectorate selected e-service from Ida Infront.
New Business Area Manager for the business area Process Management.

Summary of the first six months of the year, January – June 2015

Net sales amounted to SEK 819.1 M (782.7), up 5 percent.
EBITA totaled SEK 58.7 M (62.6), an EBITA margin of 7.2 percent (8.0). 1)
Operating profit amounted to SEK 39.6 M (45.9), an operating margin of 4.8 percent (5.9). 1)
Profit after tax amounted to SEK 28.3 M (33.6).
Earnings per share after dilution amounted to SEK 0.96 (1.13).
Cash flow from operating activities amounted to SEK 63.8 M (85.7).

Significant events after the end of the period

Addnode Group acquired on July 1, 2015 Transcat PLM- a German software supplier with annual net sales of SEK 450 M.

1) Excluding external acquisition costs of 2.4 (1.0) million.

CEO's comments
The second quarter characterized by strategic acquisition
We have growth of 4 percent in the second quarter of 2015, compared with the year-earlier period. However, earnings in general did not develop as expected. The business area Design Management business area displayed favorable growth for the quarter and earnings improved. The business area PLM did not achieve the same strong results as in the year-earlier period and the outcome was partially impacted by the effort to land our largest acquisition ever – Transcat PLM. Demand and earnings in the business area Process Management were stable. The business area Content Management improved earnings through consistent marketing activities and cost savings implemented in 2014 that have now reached full effect.
Acquisition generates a leading PLM supplier in Europe
We have per July 1, 2015 acquired Transcat PLM. This means that we now have a leading position in the European PLM sector and have more than doubled net sales and the number of employees in the PLM business area. Following the acquisition, the combined TechniaTranscat has more than 400 employees and sales of SEK more than 700 M (net sales pro forma for the 2014 fiscal year). We have a long-standing partnership with Transcat PLM and recognize the clear synergies and advantages for our customers that will be generated by a merger of the two companies. Both companies are leading in their geographic areas, sectors and technology areas. Together, we will now build a unique force in the European PLM market. The acquisition of Transcat PLM is yet another example of how we establish operations through acquisition in a new geographic market with an existing offering.
Staffan Hanstorp, CEO and President
The information in this interim report is such that the Addnode Group must publish under the Securities Market Act and/or the Financial Instruments Trading Act. The information was released for publication on July 21, at 11.30 a.m.