Addnode Group Annual Report 2015 | Page 8

ADDNODE GROUP Business concept and targets

FOCUSED GROWTH STRATEGY

Addnode Group has great experience in growing through acquisitions . We believe in decentralised decision-making close to the customers . Our companies operate independently under a joint brand platform in accordance with the Group ’ s strategies , core values and leadership principles .
BUSINESS CONCEPT
Addnode Group acquires , operates and develops entrepreneurdriven IT companies that supply software and services to markets in which we have or can achieve a market-leading position . We have more than 4,500 customers in 30 countries . Through local market knowledge and depth of industrial knowledge we create stable growth and profitability to provide our customers , employees and shareholders favourable development and high returns .
FOCUS ON TWO CORE BUSINESSES
We focus on a handful of selected sectors and competency areas in which we have – or can achieve – a leading position and thereby contribute to driving ourselves and societal development forward . > We are a leading European supplier of software and services for design , construction and product data information .
> We are a market-leading supplier of document and case management systems to public sector clients in Sweden and Norway .
ENTREPRENEURSHIP WITH SHARED VALUES
Addnode Group is characterised by entrepreneurship with short decision-making channels in which business-critical decisions are made as close to customers and end users as possible . The Group ’ s subsidiaries are organised in business areas and operate independently under a joint brand platform in accordance with the Group ’ s strategies , core values and leadership principles . Addnode Group ’ s CEO , CFO and central functions work closely with the business area presidents and subsidiaries in order to contribute to strategic direction , financial monitoring and expertise surrounding business models , brands , acquisitions and communication .
ACQUISITION-DRIVEN GROWTH
Addnode Group is pursuing growth organically as well as through acquisitions . The software and services that we create together with our customers form the foundation for organic growth . Acquisitions of businesses , technology and solutions strengthen our position and expertise , and enable faster expansion into new markets . We value triedand-tested business models , competent employees and recurring revenue .
BUSINESS MODELS WITH LARGE SHARE OF RECURRING REVENUE
Our business models combine sales of services and software with recurring revenue from SaaS ( Software as a Service ) solutions , and support and maintenance contracts . We take long-term responsibility for the IT solutions we deliver , which creates value and stability for our customers and profitability for the Group even in a weaker economic climate . In 2015 , recurring revenue accounted for 49 per cent of net sales .

12 % 4,500

AVERAGE GROWTH DURING THE LAST FIVE-YEAR PERIOD
CUSTOMERS IN MORE THAN 30 COUNTRIES
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