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.

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