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Interim Report Q2 1 April - 30 September 2016

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Second quarter (1 July - 30 September 2016)

  • Net sales increased by 12 percent and amounted to SEK 1,658 million (1,482).
  • Operating profit before amortisation of intangible non-current assets (EBITA) increased by 24 percent and amounted to SEK 183 million (147) corresponding to an EBITA-margin of 11.0 percent (9.9).
  • Operating profit increased by 24 percent and amounted to SEK 156 million (125) corresponding to an operating margin of 9.4 percent (8.5).
  • Profit after tax increased by 30 percent and amounted to SEK 121 million (94).
  • Earnings per share totalled SEK 1.80 (1.40). For the most recent 12-month period, earnings per share amounted to SEK 5.70 (5.50).
  • Cash flow from operating activities amounted to SEK 110 million (77). For the most recent 12-month period, cash flow per share amounted to SEK 8.20 (7.70).

The period (1 April - 30 September 2016)

  • Net sales increased by 16 percent and amounted to SEK 3,418 million (2,954).
  • Operating profit before amortisation of intangible non-current assets (EBITA) increased by 31 percent and amounted to SEK 362 million (277) corresponding to an EBITA-margin of 10.6 percent (9.4).
  • Operating profit increased by 32 percent and amounted to SEK 309 million (234) corresponding to an operating margin of 9.0 percent (7.9).
  • Profit after tax increased by 33 percent and amounted to SEK 234 million (177).
  • Earnings per share totalled SEK 3.45 (2.60).
  • Return on working capital amounted to 48 percent and return on equity amounted to 24 percent (27).
  • The equity ratio amounted to 38 percent (35).
  • Since the start of the financial year we have completed five acquisitions, of which one after the end of the period, with total annual sales of about SEK 230 million.

CEO's Comments

Continued good earnings growth during the second quarter
Addtech continued to develop very well in the second quarter. Despite the challenging state of the market, we continue to grow. Compared to the corresponding quarter of the previous year, which was relatively strong, sales increased by 12 percent and EBITA increased by 24 percent. As a result our operating margin was further strengthened. The increase in earnings is equal parts attributable to acquisitions as to organic growth with good cost control. The selective cost reductions that have been implemented are now having a positive effect on earnings.

Overall, the underlying demand was stable for the Group during the quarter, but the market situation varies depending on geography and customer segment. Demand for production components from Nordic manufacturing companies remained stable at a high level in most customer segments, such as machinery manufacturers, the engineering industry and medical technology. Business from customers within special vehicles, transport and wind power improved. Demand for products in telecom fell considerably, and investments in oil and gas in Norway remained at a low, yet stable, level. However, demand is growing in other areas in the Norwegian market, such as infrastructure and the food industry. Demand from industrial aftermarket customers generally remained unchanged. Customers in electricity transmission have increased their investments, while demand from customers in electricity distribution remained at a high and stable level. The market for electricity-related products in building and installation developed well.

Since the start of the financial year we have completed five acquisitions, of which one after the end of the period, with total annual sales of about SEK 230 million and 77 employees. With a robust cash flow and a strong balance sheet our ambition is to continue growing and acquiring profitable technology companies with market-leading niche positions.

Stockholm 27 October, 2016

Johan Sjö
President and CEO

The interim report for the period 1 April – 31 December, 2016 will be published on 2 February, 2017.

For further information, please contact:
Johan Sjö, CEO and President, +46 8 470 49 00
Christina Kassberg, CFO, +46 8 470 49 00

This information is information that Addtech AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact persons set out above, at 8.00 a.m CET on 27 October, 2016.

Addtech in brief
Addtech is a technology trading group that provides technological and economic value added in the link between manufacturers and customers. Addtech operates in selected niches in the market for advanced technology products and solutions. Its customers primarily operate in the manufacturing industry and infrastructure. Addtech has about 2 000 employees in approximately 120 subsidiaries that operate under their own brands. The Group has annual sales of about SEK 6.5 billion. Addtech is listed on the Nasdaq Stockholm.

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