Year-End report, January 1 – December 31, 2015: Strong growth driven by international expansion

STOCKHOLM, FEBRUARY 5, 2016
Summary of the fourth quarter, October – December 2015

  · Net sales amounted to SEK 614.4 M (461.4), an increase of 33 percent.
  · EBITA increased to SEK 69.5 M (63.4), an EBITA margin of 11.3 percent
(13.7).1)
  · Operating profit increased to SEK 58.0 M (54.2), an operating margin of 9.4
percent (11.7).2)
  · After-tax profit amounted to SEK 45.5 M (47.6).
  · Earnings per share after dilution amounted to SEK 1.50 (1.61).
  · Cash flow from operating activities amounted to SEK 98.0 M (96.7).

1) Excluding revaluation of conditional purchase considerations of SEK 0.00 M
(34.3).

2) Excluding revaluation of conditional purchase considerations of SEK 0.0 M
(34.3) and SEK 0.0 M (-30.0) for goodwill impairment.

Summary of the twelve month period, January – December 2015

  · Net sales increased to SEK 1,900.8 M (1,598.6), an increase of 19 percent.
  · EBITA increased to SEK 168.0 M (159.0), an EBITA margin of 8.8 percent
(9.9).1)
  · Operating profit increased to SEK 126.0 M (124.2), an operating margin of
6.6 percent (7.8).2)
  · After-tax profit increased to SEK 95.5 M (100.2).
  · Earnings per share after dilution rose to SEK 3.18 (3.38).
  · Cash flow from operating activities amounted to SEK 143.8 M (152.5).

1) Excluding revaluation of conditional purchase considerations of SEK 0.0 M
(34.3).

2) Excluding revaluation of conditional purchase considerations of SEK 0.0 M
(34.3) and SEK 0.0 M (-30.0) for goodwill impairment.

Significant events during the fourth quarter of 2015

  · Parts of Cad-Q’s business model are changing.
  · Extended agreement with the Swedish Transport Administration (Trafikverket),
order value of SEK 12 M.



Significant events after the end of the period

  · Renewed agreement with technical consultancy company, order value of SEK 31
M.
  · Renewed agreement with German car manufacturer, order value of approximately
SEK 75 M.
  · Acquisition of software company 5D System.
  · The Board of Directors proposes an unchanged dividend of SEK 2.25 (2.25) per
share.

CEO’s comments

Strong growth in a market with major opportunities

We ended 2015 with strong growth of 33 percent in the fourth quarter. Our
recurring revenue is continuously growing and amounted to 48 percent of net
sales during the quarter, and we improved EBITA by ten percent, all compared
with the year-earlier period.

   We are a leading supplier in Europe of systems for design and lifecycle
management of products and services via our two business areas - Design and
Product Lifecycle Management (PLM). Design Management has growth of ten percent,
mainly driven by positive developments in the Swedish construction and property
market. PLM is showing growth of a full 171 percent and greatly improved
earnings compared with the same quarter in the preceding year, which is mainly
an effect of the acquisition of the German company Transcat PLM. The acquisition
– which was completed July 1, 2015 and is our largest so far –  will have an
impact on the Group’s total EBITA margin as the company has a product mix with
lower margins than the Group as a whole. However, we are already noticing
synergy effects with our sister company, Technia, and major potential to
increase the margin and profitability in this business area over time.

The Process Management business area is continuing to show good profitability
and I am proud that our case management and management systems are contributing
to a better society through our deliveries of innovative IT solutions to
municipalities and authorities in Sweden and Norway. Over 90 percent of Sweden’s
municipalities use system solutions provided by us, which creates a good
platform and excellent opportunities to reach out with new offers to the public
sector.

Increased digitization leads to new business models

In 2016, we will continue to push for increased digitization of our customers’
daily lives and we will introduce new business models. This will create both
challenges and opportunities. As we summarize 2015 and look ahead, I note that
we have a strong system solutions offering in niched areas, which simplifies and
improves the daily lives of over half a million engineers and employees in the
public sector across the globe.

Staffan Hanstorp, President and CEO

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 February 5, 2016 at 08.30
a.m CET.
For more information, please contact:

Staffan Hanstorp, President and CEO Addnode Group AB
Tel: +46 (0) 733 77 24 30, e-mail: staffan.hanstorp@addnodegroup.com

Johan Andersson, CFO and Head of Investor Relations Addnode Group AB
Tel: +46 (0) 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 1,200 employees in
Sweden, Austria, Denmark, Finland, Germany, India, Norway, Slovakia, the UK and
the US and Serbia. Net sales in 2015 amounted to SEK 1,900 M. Addnode Group's
Series B share is listed on the Nasdaq Stockholm, Small Cap. For more
information, please visit www.addnodegroup.com