Interim Report, 1 January – 30 June 2015

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.
For more information please contact:
Staffan Hanstorp
CEO and President
Phone: +46 733 772 430
E-mail: staffan.hanstorp@addnodegroup.com
Johan Andersson
CFO & IR
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, 500,000 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 1,150 employees in Austria, Denmark, Finland, Germany, India, Norway,
Slovakia, Sweden, the UK and the US 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. For more information, please visit www.addnodegroup.com.