ANNUAL REPORT Board of Directors ’ report
ANNUAL REPORT 2015
The Board of Directors and President of Addnode Group AB ( publ ), with its registered office in Stockholm and Corporate Identity Number 556291-3185 , hereby submit the Annual Report for the 2015 financial year for the Parent Company and the Group . The Annual Report covers pages 33 – 71 , and the Corporate Governance Report and Auditors ’ Report cover pages 73 – 82 . The results of the year ’ s operations as well as the Parent Company ’ s and the Group ’ s financial position are presented in the Board of Directors ’ Report along with the accompanying income statements and balance sheets , statements of comprehensive income , statements of cash flows , specifications of changes in shareholders ’ equity and supplementary disclosures and notes , which comprise the comprehensive annual report .
Board of Directors ’ Report
BUSINESS FOCUS Our business concept is to acquire , operate and develop entrepreneurdriven companies that supply software and services to markets in which we have or can achieve a leading position . We are one of Europe ’ s leading suppliers of software and services for design , construction and product data information , and a leading supplier of document and case management systems to public sector clients in Sweden and Norway .
Operations are organised in four business areas : > Design Management – IT solutions for design and construction > Product Lifecycle Management – IT solutions for product data information > Process Management – IT solutions for document and case management systems for municipal administrations and authorities > Content Management – IT solutions for public websites , collaboration solutions and customer service .
Consolidated net sales in 2015 amounted to SEK 1,900.8 m ( 1,598.6 ), an increase of 19 per cent . The increase is mainly attributable to the acquisitions carried out in 2014 and 2015 . For like-for-like units , net sales were level with the preceding year . The Group ’ s revenue from support and maintenance agreements increased by 25 per cent from 2014 to 2015 .
EBITA amounted to SEK 168.0 m ( 193.3 ), corresponding to an EBITA margin of 8.8 per cent ( 12.1 ). Earnings for 2014 included revenue of SEK 34.3 m from the revaluation of contingent consideration . Excluding this revaluation , EBITA for 2014 was SEK 159.0 m , corresponding to an EBITA margin of 9.9 per cent . Scheduled amortisation of intangible non-current assets amounted to SEK 42.1 m ( 34.8 ), and impairment of goodwill amounted to SEK 0.0 m ( 30.0 ). Operating profit was SEK 126.0 m ( 128.5 ), corresponding to an operating margin of 6.6 per cent ( 8.0 ). Through business development and acquisitions , the share of proprietary software and applications increased in the IT solutions that the Group offers its customers . In 2015 , investments in proprietary software and applications were capitalised in the amount of SEK 43.2 m ( 29.9 ).
Net sales for the Design Management business area increased , while EBITA was slightly lower than in 2014 . For Product Lifecycle Management , net sales rose sharply , and EBITA improved compared with the preceding year , mainly owing to acquisitions in 2015 . For the Process Management business area , net sales and EBITA were level with the preceding year . For Content Management , net sales were level with the preceding year , while EBITA improved .
Net financial items for the Group amounted to SEK – 1.4 m ( 1.3 ). Tax on profit for the year was SEK – 29.1 m (– 29.5 ). Profit after tax was SEK 95.5 m ( 100.2 ).
BUSINESS AREA PERFORMANCE Addnode Group ’ s operations are organised in four business areas : Design Management , Product Lifecycle Management , Process Management and Content Management .
KEY FIGURES BY BUSINESS AREA |
Net sales |
EBITA |
Operating profit |
Average number of employees |
2015 |
2014 |
2015 |
2014 |
2015 |
2014 |
2015 |
2014 |
Design Management |
827.7 |
780.5 |
65.8 |
70.3 |
47.0 |
53.6 |
317 |
306 |
Product Lifecycle Management |
512.6 |
263.6 |
52.7 |
41.4 |
46.3 |
38.2 |
281 |
163 |
Process Management |
440.3 |
432.6 |
70.0 |
70.9 |
54.4 |
57.5 |
275 |
275 |
Content Management |
139.9 |
142.0 |
8.6 |
1.8 |
7.4 |
0.3 |
125 |
138 |
Central functions |
10.7 |
9.4 |
– 29.1 |
– 25.4 |
– 29.1 |
– 25.4 |
7 |
8 |
Eliminations / other |
– 30.4 |
– 29.5 |
— |
34.3 , 1 ) |
— |
4.3 , 2 ) |
— |
— |
Addnode Group 1,900.8 1,598.6 168.0 193.3 126.0 128.5 1,005 890
1 )
Amount pertains to the earnings effect , SEK 34.3 m , of a revaluation of contingent consideration for acquired companies .
2 )
Amount pertains to the earnings effect , SEK 34.3 m , of a revaluation of contingent consideration for acquired companies , and goodwill impairment of SEK – 30.0 m .
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