Interim report, January 1 – March 31, 2015

Growth and stable earnings
Summary of the first quarter, January – March 2015

  · Net sales amounted to SEK 431.8 M (411.4), up 5 percent.
  · EBITA totaled SEK 33.7 M (34.3), an EBITA margin of 7.8 percent (8.3).
  · Operating profit amounted to SEK 24.4 M (26.4) MSEK, and operating margin of
5.7 percent (6.4).
  · After-tax profit increased to SEK 19.6 M (19.2).
  · Earnings per share after dilution rose to SEK 0.66 (0.65).
  · Cash flow from operating activities amounted to SEK 40.5 M (71.8).

Significant events during the first quarter, January–March 2015

  · Joint venture formed for development of Internet of Things applications
  · Contract-award decision received for planning and monitoring system valued
at approximately SEK 35 M, which was subsequently appealed
  · Framework agreement signed with the Swedish National Heritage Board valued
at approximately SEK 15 M
  · Strategic order secured – PLM partnership with Jula.

  · 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 and solid results

Our growth rate is now at 5 percent for the first quarter of 2015 and we
reported stable earnings compared with the year-earlier period. We are landing
new projects and customers in the private sector and securing new agreements and
contract-award decisions from customers in the public sector. We have numerous
exciting projects in place for both the short and long term.
The Design Management business area displayed favorable growth driven by
acquisitions. However, earnings for the quarter were impacted by the decline of
the Norwegian economy. The PLM business area is now delivering stable results
after establishing a higher earnings capacity in the preceding year. The Process
Management business area displayed unchanged demand and we secured new orders.
The trend for the Content Management business area remained positive, with
improved margins.
We are currently one of the largest suppliers of operation-critical support
systems for design and engineering operations in the Nordic region and we have a
strong foothold in the UK. During the quarter, we formed a joint venture with
the German company Transcat PLM under the management of the former President of
one of the Dassault Systèmes companies. This new joint venture will focus on
designing and building innovative industrial applications based on big data,
allowing us to meet customer needs for applications that create business value
through direct communication with products and machines in what is known as the
Internet of Things.
We will continue to boost the content of products and software-as-a-service
(SaaS) in our customer deliveries. Going forward, we will continue to expand
both organically and through acquisitions, having identified both major and
minor supplementary operations with excellent potential to further strengthen
our already leading market positions.
Staffan Hanstorp, CEO and President
Staffan Hanstorp
CEO and President
Phone: +46 733 772 430
E-mail: staffan.hanstorp@addnodegroup.com
Johan Andersson
CFO and IR
Phone: +46 704 205 831
E-mail: johan.andersson@addnodegroup.com
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 April 28,
2015 at 11:00 a.m.
About Addnode Group AB
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 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 Stockholm, Small Cap. More information about
Addnode Group on www.addnodegroup.com.