ANNUAL REPORT Board of Directors ’ report
Design Management business area The Design Management business area is one of the largest providers of services for design , construction and product data information in the Nordic region and the UK . Through close customer relationships we deliver IT solutions that shorten lead times , lower costs and support operations . Solutions are based on Autodesk software as well as proprietary products and applications . The business area ’ s operations are conducted via the companies Cad-Q , Joint Collaboration and Symetri , and as from February 2016 , 5D Systemkonsult .
Net sales in Design Management amounted to SEK 827.7 m ( 780.5 ). EBITA was SEK 65.8 m ( 70.3 ), corresponding to an EBITA margin of 7.9 per cent ( 9.0 ). The increase in net sales is mainly attributable to positive development in the Swedish construction and real estate sectors , and acquisitions in the UK in 2014 . The business area won several orders in which our expertise , geographical coverage and ability to meet major customers ’ needs were decisive factors . Earnings in the Norwegian operation were stable , despite the effects on the market of the negative trend in oil prices . A weaker market in the UK , Finland and Denmark had a negative effect on the business area ’ s earnings .
Product Lifecycle Management business area The Product Lifecycle Management business area is one of Europe ’ s leading suppliers of PLM systems , with operations in the Nordic countries , Germany , Austria and the USA . Solutions are based primarily on Dassault Systèmes software and proprietary products . The business area ’ s operations are conducted via the subsidiary TechniaTranscat .
Net sales in Product Lifecycle Management amounted to SEK 512.6 m ( 263.6 ). EBITA was SEK 52.7 m ( 41.4 ), corresponding to an EBITA margin of 10.3 per cent ( 15.7 ). Growth and the earnings improvement are attributable to the acquisition of Transcat in July 2015 . The integration of Technia and Transcat has proceeded well , and synergies are already being achieved on the customer side , as evidenced by a greater number of spontaneous inquiries in the international market . The lower margin in 2015 is explained by a larger share of licence sales for the business area in 2014 with high margins and by the fact that the additional sales from the acquired Transcat operation have a product mix with lower margins .
Process Management business area The Process Management business area offers systems and software for case management , municipal administration , e-archives and geographical IT systems primarily for the public sector . Solutions are based on proprietary systems , applications and complementary products . The business area ’ s operations are conducted in Sweden and Norway via the subsidiaries Abou , Arkiva , Decerno , Ida Infront , Kartena , Mittbygge , Prosilia , Tekis and Cartesia .
Net sales in Process Management amounted to SEK 440.3 m ( 432.6 ). EBITA was SEK 70.0 m ( 70.9 ), corresponding to an EBITA margin of 15.9 per cent ( 16.4 ). The business area had continued favourable demand for information and case management systems and has won several tenders in the Swedish public sector . Favourable capacity utilisation primarily in case management projects for government authorities and large development and administrative projects contributed to stable profitability .
Content Management business area The Content Management business area offers IT solutions in the form of public websites , collaboration solutions , interactive voice response services , telecom and intranet solutions , and e-commerce systems . The business area ’ s operations are conducted via the subsidiaries Mogul and Voice Provider . Net sales in Content Management amounted to SEK 139.9 m ( 142.0 ). EBITA was SEK 8.6 m ( 1.8 ), corresponding to an EBITA margin of 6.1 per cent ( 1.3 ). The business area improved its EBITA margin , primarily through efficiency improvements and better capacity utilisation resulting from a clearer market offering .
ACQUISITIONS IN 2015 On 1 July 2015 an agreement was signed to acquire all of the shares in the German company Transcat GmbH , with possession taking place the same day . The company ’ s operations are conducted primarily in Germany , as well as in Austria and Slovakia via subsidiaries . The acquired operations had net sales in 2014 of approximately SEK 450 m and EBITA of approximately SEK 23 m . The companies have approximately 200 employees , based on full-time equivalents . Transcat is one of Europe ’ s leading providers of IT solutions for product information ( PLM solutions ) based on Dassault Systèmes ’ brands , complemented by a portfolio of proprietary products . In addition , Transcat offers consulting services , advice on project design , training and user support .
Prior to this acquisition Addnode Group ’ s Product Lifecycle Management business area was already the largest provider of customised PLM systems in the Nordic region and one of the largest in Europe . The business area ’ s operations are conducted primarily via the subsidiary Technia . Transcat has been included in the business area since the date of possession and complements Technia both strategically and operationally . The acquisition is in line with Addnode Group ’ s strategy to be a leading European supplier of design and PLM products and related services . The combined TechniaTranscat is a market leader in the European PLM market . The acquisition gives Addnode Group expanded expertise and synergy opportunities , and marks the Group ’ s establishment of operations in Germany .
EVENTS AFTER THE END OF THE FINANCIAL YEAR On 1 February 2016 an agreement was signed to acquire all of the shares in 5D Systemkonsult AB , with possession taking place the same day . During the financial year May 2014 – April 2015 the company had net sales of SEK 22 m and an operating profit of SEK 4 m . 5D Systemkonsult is a Swedish software company that offers property management systems to public and private sector customers . The company has 20 employees and will be part of the Design Management business area , which has since previously had a strong offering of systems for the construction and property sectors . The acquisition further complements and strengthens this offering .
In January 2016 an additional SEK 29.5 m was utilised of the credit facility of up to SEK 200 m that was secured in January 2015 .
In other respects , no significant events have taken place after the balance sheet date .
LIQUIDITY , CASH FLOW AND FINANCIAL POSITION The Group ’ s cash and cash equivalents totalled SEK 102.9 m ( 72.4 ) on 31 December 2015 . Cash flow from operating activities amounted to SEK 143.8 m ( 152.5 ) in 2015 . Cash flow from investing activities in 2015 included SEK 8.4 m in payments of contracted and previously expensed consideration for company acquisitions carried out in previous years , and SEK 43.2 m ( 29.9 ) in payments for proprietary software .
During the second quarter , a share dividend of SEK 66.6 m was paid out . In late June / early July a new bank loan of SEK 94.0 m was raised in connection with the acquisition of Transcat GmbH in early July . The Group ’ s interest-bearing liabilities as at 31 December 2015 amounted to SEK 126.6 m ( 40.4 ), and the net sum of interest-bearing assets and liabilities was SEK – 23.2 m ( 33.2 ). The equity / assets ratio on 31 December 2015 was 48 per cent ( 56 ). The Parent Company has an existing bank overdraft facility of SEK 100 m . In addition , in January 2015 the Parent Company signed an agreement for a credit facility of up to SEK 200 m to finance future acquisitions . The facility has a term of four years and can be drawn successively . Of the credit facility , SEK 94.0 m was drawn in June and early July 2015 , of which SEK 43.4 m had a term of six months and SEK 50.6 m a term of 12 months ; however , the debt amount can thereafter be re-borrowed in its entirety within the framework of the credit facility ’ s total amount . In early January 2016 the bank loan with a term of six months was re-borrowed at an unchanged amount with a new term of six months .
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