Interim Report Q2 1 April - 30 September 2017

SECOND QUARTER (1 JULY - 30 SEPTEMBER 2017)

• Net sales increased by 14 percent and amounted to SEK 1,892 million (1,658).
• Operating profit before amortisation of intangible non-current assets (EBITA) increased by 17 percent and amounted to SEK 213 million (183) corresponding to an EBITA margin of 11.2 percent (11.0). 
• Operating profit increased by 16 percent and amounted to SEK 181 million (156) corresponding to an operating margin of 9.6 percent (9.4).
• Profit after tax increased by 12 percent and amounted to SEK 135 million (121) and earnings per share before dilution amounted to SEK 1.95 (1.80). 

PERIOD (1 APRIL - 30 SEPTEMBER 2017)

• Net sales increased by 13 percent and amounted to SEK 3,871 million (3,418).
• Operating profit before amortisation of intangible non-current assets (EBITA) increased by 18 percent and amounted to SEK 427 million (362) corresponding to an EBITA margin of 11.0 percent (10.6). The profit includes items affecting comparability amounting to a net total of SEK +12 million, and adjusted EBITA amounted to SEK 415 million (362), corresponding to an EBITA margin of 10.7 percent (10.6).
• Operating profit increased by 17 percent and amounted to SEK 362 million (309) corresponding to an operating margin of 9.4 percent (9.0).
• Profit after tax increased by 19 percent and amounted to SEK 278 million (234) and earnings per share before dilution amounted to SEK 4.05 (3.45).
• Return on working capital amounted to 53 percent (48) and return on equity amounted to 29 percent (24).
• The equity ratio amounted to 36 percent (38).
• Since the start of the financial year we have completed six acquisitions, of which three after the end of the period, with total annual sales of about SEK 480 million. 

CEO´S COMMENTS

Strong growth in positive markets
The market was very strong during the quarter and the Group had an organic increase in sales of 9 percent and an improved operating margin. Our Components and Industrial Process business areas improved their earnings and operating margins as a result of organic growth and acquisitions. The Energy and Power Solutions business areas also experienced growth and continue to provide high operating margins.

The overall demand for our products and solutions was at a high level in most of the markets in which our businesses operate. From a geographical perspective, the highest rate of growth was in Finland, while the business situation also improved from an already high level in both Denmark and Sweden. In Norway, demand was overall stable and business outside the Nordic region remained good. 

Sales of production components to manufacturing companies continued to increase, especially in customer segments such as special vehicles, wind power and shipping. Demand was also good from customers in the areas of machine manufacturing, medical technology and electronics, while it was slightly weaker in telecom and oil & gas. Demand for aftermarket products for the production and process industry was positive, with increased sales to the sawmill industry, paper & pulp and machine manufacturers.

Demand from Nordic electricity grid companies, in both electricity transmission and electricity distribution, remained stable at a high level. Sales of electricity-related products within building and installation developed positively.

Acquisitions
We continuously evaluate acquisitions of independent, profitable technology companies with market-leading niche positions and smaller bolt-on acquisitions that can strengthen the market positions of our existing companies. Since the beginning of the financial year, we have completed six acquisitions, three of which were made after the end of the quarter. The acquisitions together contribute annual sales of approximately SEK 480 million. We have good opportunities to make further acquisitions, not least in view of our strong balance sheet.

Stockholm, 26 October 2017

Johan Sjö
President and CEO

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 below, at 8.30 a.m CET on 26 October 2017.

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

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 2,200 employees in approximately 120 subsidiaries that operate under their own brands. The Group has annual sales of over SEK 7.5 billion. Addtech is listed on the Nasdaq Stockholm.