Interim Report, January 1 – September 30, 2014

Strong results and 18 percent growth in the third quarter
Summary of the third quarter, July – September 2014

•  Net sales amounted to SEK 354.5 M (301.4), up 18 percent.
•  EBITA rose to SEK 34.0 M (14.4), an EBITA margin of 9.6 percent (4.8).1)
•  Operating profit increased to SEK 25.1 M (8.3), an operating margin of 7.1
percent (2.8).1)
•  After-tax profit increased to SEK 19.0 M (0.9).
•  Earnings per share after dilution rose to SEK 0.64 (0.03).
•  Cash flow from operating activities amounted to a negative SEK 29.9 M (neg:
1.4).

Summary of the nine-month period, January – September 2014

• Net sales amounted to SEK 1,137 M (1,010), up 13 percent.
• EBITA rose to SEK 95.6 M (62.5), an EBITA margin of 8.4 percent (6.2).1)
• Operating profit increased to SEK 70.0 M (45.5), an operating margin of 6.2
percent (4.5).1)
• After-tax profit increased to SEK 52.6 M (28.9).
• Earnings per share after dilution rose to SEK 1.78 (1.01).
• Cash flow from operating activities amounted to SEK 55.8 M (64.4).

1) Excluding non-recurring costs of SEK 0.0 M (5.5) for organizational changes
and costs for the revaluation of conditional purchase considerations of SEK 0.0
M (0.2).

Significant events after the end of the period

• Renewed agreement with Statoil – order value of SEK 90 M over a three-year
period.
• Acquired 37% of the company Kompanion – SaaS planning tool for home-help
service.

CEO’s comments

Strong results and 18 percent growth
Thanks to our long-term customer relationships and niche expertise, we were able
to generate good business in a difficult market. The Design and PLM Management
business areas reported a highly favorable trend and we secured several new
orders. For example, Joint extended its contract with Statoil for the
collaboration and project tool for planning and implementation of all
development projects. The agreement is worth approximately SEK 90 M and extends
over a three-year period. Our UK acquisition, Symetri, also had a positive
impact on earnings for the period.
We have a strong offering for technical administration in Sweden’s
municipalities. With investment in the company behind Kompanion, we will also
gain a firm foothold in the “soft” sector. Kompanion is an Internet-based tool
for planning and organizing home-help service. With our experience in the public
sector and our expertise in geographic information systems, service optimization
and case management systems, we will be able to help Kompanion to continue to
grow and develop.
We have 18 percent growth in the third quarter, of which 6 percentage points
comprised organic growth and an improved EBITA margin of 9.6 percent. We are
continuously increasing recurring revenue from support and maintenance
agreements, as well as SaaS solutions. This gives us a more stable and uniform
earnings trend over the year. During the third quarter, a full 49 percent of net
sales derived from recurring revenue. The market is stable in most areas.
However, the prevailing macroeconomic climate and geopolitical situation has
resulted in some caution in the willingness to invest by our customers active in
more capital-intensive industries. This is most obvious in Finland and among our
customers in the oil and gas industry, as well as the maritime industry in
Norway and the UK. From this perspective, I feel that the outcome in the third
quarter is a sign of strength from the Group.
Staffan Hanstorp, President and CEO

The information in this interim report is such that Addnode Group must disclose
in accordance with the Swedish Securities and Clearing Operations Act and/or the
Financial Instruments Trading Act. The information was released on October 24,
2014, 08.30 a.m.
For more information, please contact:
Staffan Hanstorp
CEO and President
Tel: +46 733 772 430, e-post: staffan.hanstorp@addnodegroup.com
Johan Andersson
CFO and Head of IR
Tel: +46 704 205 831, e-post: johan.andersson@addnodegroup.com
About Addnode Group
Addnode Group provides mission-critical IT solutions to selected markets in both
private and public sectors. We acquire, build and manage companies that deliver
IT solutions for the specific needs of our clients.
Every day, 250,000 engineers use our systems to develop and maintain products,
buildings and facilities. 100,000 civil servants in the public sector use our
solutions for municipal and state administration.
We are 950 employees in Sweden, Norway, Finland, Denmark, UK, USA, India and
Serbia. In 2013 net sales totaled SEK 1 444 M. Addnode's Series B share is
listed on the OMX Nordic List, Small Cap.
For more information, please visit www.addnodegroup.com.