Year-End Report January 1 – December 31, 2014

Growth, strong earnings and cash flow
Summary of the fourth quarter, October – December 2014

  · Net sales amounted to SEK 461.4 M (433.5), up 6 percent.
  · EBITA rose to SEK 63.4 M (57.6), an EBITA margin of 13.7 percent (13.3).1)
  · Operating profit increased to SEK 54.2 M (49.8), an operating margin of 11.7
percent (11.5).2)
  · After-tax profit increased to SEK 47.6 M (34.0).
  · Earnings per share after dilution rose to SEK 1.61 (1.15).
  · Cash flow from operating activities amounted to SEK 96.7 M (54.4).

1)       Excluding revaluation of conditional purchase considerations of SEK
34.3 M (0.0) and non-recurring costs of SEK 0.0 M (3.7) for organizational
changes.

2)       Excluding revaluation of conditional purchase considerations of SEK
34.3 M (0.0), non-recurring costs of SEK 0.0 M (3.7) for organizational changes
and SEK 30.0 M (0.0) for goodwill impairment.

Summary of the 12-month period, January – December 2014

  · Net sales amounted to SEK 1,598.6 M (1,443.5), up 11 percent.
  · EBITA rose to SEK 159.0 M (120.1), an EBITA margin of 9.9 percent (8.3).1)
  · Operating profit increased to SEK 124.2 M (95.3), an operating margin of 7.8
percent (6.6).2)
  · After-tax profit increased to SEK 100.2 M (62.9).
  · Earnings per share after dilution rose to SEK 3.38 (2.19).
  · Cash flow from operating activities amounted to SEK 152.5 M (118.8).

1)      Excluding revaluation of conditional purchase considerations of SEK 34.3
M (0.2) and non-recurring costs of SEK 0.0 M (9.2) for organizational changes.

2)      Excluding revaluation of conditional purchase considerations of SEK 34.3
M (0.2), non-recurring costs of SEK 0.0 M (9.2) for organizational changes and
SEK 30.0 M (0.0) for goodwill impairment.

Significant events during the fourth quarter of 2014

  · Renewed agreement with Statoil – order value of SEK 90 M over a three-year
period.
  · Acquisition of 37 percent of Kompanion – SaaS planning tool for home-help
service.
  · Addnode Group received award for best annual report.

Significant events after the end of the period

  · The Board of Directors proposes unchanged dividend of SEK 2.25 (2.25) per
share.
  · Addnode Group signed an acquisition loan facility for SEK 200 M.

CEO’s comments

Growth, healthy earnings and cash flow
There are many reasons to be enthusiastic about Addnode Group’s performance for
2014. We are generating new business, we are expanding, our earnings are
increasing and our cash flow is improving. This is due to the advancement of the
positions of all four of our business areas.

The Design Management business area is expanding and has strengthened its market
position as the largest and leading supplier of IT solutions for digital models
and drawings in the Nordic region. The PLM business area has risen to a new
level of profitability and expanded the offering to new customer segments. In
the Process Management business area, we launched new offerings and secured
several systems-development orders, while retaining healthy profitability.
During the year, Content Management significantly improved its results, although
we have not yet hit the target.

The stability and predictability of our operations have become more distinct
during the year. Recurring revenue from support and maintenance agreements, as
well as SaaS solutions have increased and accounted for a full 46 percent of net
sales in the fourth quarter.

In a turbulent business world with many changing conditions, we have confirmed
that Addnode Group has the ability to capture new business and expand with
improved profitability.

With a strong balance sheet and healthy cash flows, we have significant latitude
to develop the group, both organically and through acquisitions. The acquisition
loan facility of SEK 200 M means we have secured further capital, which will
provide us with the potential to continue the development of Addnode Group with
full vigor.

Staffan Hanstorp, CEO and President

The information in this Year-end 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 February 5,
2015 at 08:30.
For more information please contact:
Staffan Hanstorp
CEO and President
Phone: +46 733 772 430
E-mail: staffan.hanstorp@addnodegroup.com
Johan Andersson
CFO
Phone: +46 704 205 831
E-mail: johan.andersson@addnodegroup.com
About Addnode Group
Addnode Group offers operation-critical IT solutions to selected markets within
both private and public sectors. We acquire, build and develop companies that
deliver operation-critical IT solutions for specific needs from our customers.
Every day, 400,000 engineers use our systems to develop and maintain products,
buildings and installations. 100,000 salaried employees in the public sector use
our solutions for municipal and government management.
We have 950 employees in Sweden, Norway, Finland, Denmark, the UK, the US, India
and Serbia. Net sales in 2014 amounted to SEK 1,599 M. Addnode Group's Series B
share is listed on the NASDAQ OMX Nordic Small Cap.
For more information about Addnode Group, visit www.addnodegroup.com.