OTHER FINANCIAL INFORMATION

Profitability, financial position and cash flow
The return on equity at the end of the period was 28 percent (27), and return on capital employed was 19 percent (17). Return on working capital P/WC (EBITA in relation to working capital) amounted to 66 percent (54).

At the end of the period the equity ratio amounted to 35 percent (33). Equity per share, excluding non-controlling interest, totalled SEK 13.65 (10.60). The Group's net debt at the end of the period amounted to SEK 3,299 million (2,976), excluding pension liabilities of SEK 344 million (387). The net debt/equity ratio, calculated on the basis of net debt excluding provisions for pensions amounted to 0.8 (1.0).

Cash and cash equivalents consisting of cash and bank equivalents and approved but non-utilised credit facilities amounted to SEK 1,654 million (1,893) at 31 December 2021.

Cash flow from operating activities amounted to SEK 805 million (1,050) during the period. Company acquisitions and disposals including settlement of contingent consideration regarding acquisitions implemented in previous years amounted to SEK 711 million (1,054). Investments in non-current assets totalled SEK 72 million (51) and disposal of non-current assets amounted to SEK 7 million (6). Repurchase of call options amounted to SEK 37 million (23) and exercised and issued call options totalled SEK 40 million (43). Dividend paid to the shareholders of the Parent Company totalled SEK 323 million (269), corresponding to SEK 1.20 (1.00) per share. The dividend was paid out in the second quarter.

Employees
At the end of the period, the number of employees was 3,381 compared to 3,133 at the beginning of the financial year. During the period, completed acquisitions resulted in an increase of the number of employees by 239. The average number of employees in the latest 12-month period was 3,240.

Ownership structure
At the end of the period the share capital amounted to SEK 51.1 million.

Addtech has four outstanding call option programmes for a total of 3,184,070 shares. Call options issued on repurchased shares entail a dilution effect of about 0.3 percent during the latest 12-month period. Addtech's own shareholdings fully meet the needs of the outstanding call option programmes.

Acquisitions and disposals
During the period, 1 April to 30 September 2021 the following acquisitions were completed; AVT Industriteknik AB, Sweden, Tritech Solutions AB, Sweden, and Systerra Computer GmbH, Germany, was acquired to become part of the Automation business area. EK Power Solutions AB, Sweden, was acquired to become part of the Electrification business area. ESi Controls Ltd., Great Britain, and IETV Elektroteknik AB, Sweden, was acquired to become part of the Energy business area. Hydro-Material Oy, Finland, was acquired to become part of the Industrial Solutions business area. KZ moder AB, Sweden, och Finnchain Oy, Finland, was acquired to become part of the Process Technology business area.

During the third quarter, three acquisitions took place:

On 1 October, ABH Stromschienen GmbH (“ABH”), Germany, was acquired to become part of the Electrification business area. ABH develops, specifies, and delivers power distribution systems for applications for data centers, industry and e-mobility. The company has 22 employees and sales of approximately EUR 10 million.

On 1 October, Ko Hartog Verkeerstechniek B.V., Netherlands, was acquired to become part of the Energy business area. Ko Hartog Verkeerstechniek B.V. develops, produces and sells traffic signal systems and other traffic safety equipment and offers assembling, installation, service and maintenance of the products. The company has 18 employees and sales of approximately EUR 8 million.

On 1 November, Jolex AB, Sweden, was acquired to become part of the Electrification business area. Jolex delivers shielding and heat-conducting products to applications in military, medical, data and telecom. The company has 1 employee and sales of approximately SEK 20 million.

The purchase price allocation calculations for the acquisitions completed during the period 1 April – 31 December 2020 have now been finalised. No significant adjustments have been made to the calculations. Acquisitions completed as of the 2020/2021 financial year are distributed among the Group’s business areas as follows:

If all acquisitions which have taken effect during the period had been completed on 1 April 2021, their impact would have been an estimated SEK 670 million on Group net sales, about SEK 75 million on operating profit and about SEK 55 million on profit after tax for the period.

Addtech normally employs an acquisition structure comprising basic purchase consideration and contingent consideration. The outcome of contingent purchase considerations is determined by the future earnings reached by the companies and is subject to a fixed maximum level. Of considerations not yet paid for acquisitions during the period, the discounted value amounts to SEK 128 million. The contingent purchase considerations fall due for payment within three years and the outcome is subject to a maximum of SEK 153 million. 

Transaction costs for acquisitions that resulted in an ownership transfer during the period, amounted to SEK 9 million (8) and are reported under Selling expenses.

Revaluation of contingent consideration had a positive net effect of SEK 5 million (7) during the period. The impact on profits are reported under Other operating income and Other operating expenses, respectively.

According to the preliminary acquisitions analyses, the assets and liabilities included in the acquisitions were as follows, during the period:

Parent Company

Parent Company net sales amounted to SEK 48 million (47) and profit after financial items was SEK -21 million (-11). Net investments in non-current assets were SEK 1 million (0). The Parent Company's financial net debt was SEK 323 million (653) at the end of the period.