OTHER FINANCIAL INFORMATION
Profitability, financial position and cash flow
The return on equity at the end of the period was 26 percent (26), and return on capital employed was 17 percent (17). Return on working capital P/WC (EBITA in relation to working capital) amounted to 61 percent (51).
At the end of the period the equity ratio amounted to 32 percent (32). Equity per share, excluding non-controlling interest, totalled SEK 12.30 (10.40). The Group's net debt at the end of the period amounted to SEK 3,480 million (3,148), excluding pension liabilities of SEK 336 million (359). The net debt/equity ratio, calculated on the basis of net debt excluding provisions for pensions amounted to 1.0 (1.0).
Cash and cash equivalents consisting of cash and bank equivalents and approved but non-utilised credit facilities amounted to SEK 1,450 million (1,676) at 30 September 2021.
Cash flow from operating activities amounted to SEK 435 million (567) during the period. Company acquisitions and disposals including settlement of contingent consideration regarding acquisitions implemented in previous years amounted to SEK 592 million (888). Investments in non-current assets totalled SEK 36 million (33) and disposal of non-current assets amounted to SEK 6 million (4). Repurchase of call options amounted to SEK 36 million (22) and exercised call options totalled SEK 7 million (17). During the second quarter, dividend of SEK 1.20 (1.00) per share was paid, totalling SEK 323 million (269).
At the end of the period, the number of employees was 3,319 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 198. The average number of employees in the latest 12-month period was 3,174.
At the end of the period the share capital amounted to SEK 51.1 million.
|Class of shares||Number of shares||Number of votes||Percentage of capital||Percentage of votes|
|Class A shares, 10 votes per share||12,885,744||128,857,440||4.7%||33.1%|
|Class B shares, 1 vote per share||259,908,240||259,908,240||95.3%||66.9%|
|Total number of shares before repurchases||272,793,984||388,765,680||100.0%||100.0%|
|Repurchased class B shares||-3,451,272||1.3%||0.9%|
|Total number of shares after repurchases||269,342,712|
In accordance with a resolution of the August 2021 AGM, 100 members of management were offered the opportunity to acquire 1,000,000 call options on repurchased Class B shares. In total, 768,070 options were subscribed for. Addtech has four outstanding call option programmes for a total of 3,315,070 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.
|Outstanding programme||Number of options||Corresponding number of shares||Proportion of total shares||Exercise price per option||Exercise price per share||Expiration period|
|2021/2025||768,070||768,070||0.3%||214.40||214.40||9 Sep 2024 - 11 Jun 2025|
|2020/2024||250,000||1,000,000||0.4%||538.10||134.53||4 Sep 2023 - 5 Jun 2024|
|2019/2023||300,000||1,200,000||0.4%||321.80||80.45||5 Sep 2022 - 2 Jun 2023|
|2018/2022||86,750||347,000||0.1%||232.90||58.23||6 Sep 2021 - 3 Jun 2022|
Acquisitions and disposals
During the period, 1 April to 30 June 2021 the following acquisitions were completed; ESi Controls Ltd., Great Britain, was acquired to become part of the Power Solutions business area. Hydro-Material Oy, Finland, was acquired to become part of the Components business area. IETV Elektroteknik AB, Sweden, was acquired to become part of the Energy business area. AVT Industriteknik AB, Sweden, was acquired to become part of the Automation business area.
During the second quarter, five acquisitions took place:
On 1 July, EK Power Solutions AB, Sweden, was acquired to become part of the Components business area. EK Power has a leading position in the development of power electronics and electric motor control. The company has 25 employees and sales of approximately SEK 40 million.
On 1 July, KZ moder AB (“KZ Group“), Sweden, was acquired to become part of the Industrial Process business area. KZ Group is a leading supplier of components, equipment and solutions for the water grid as well as treatment of water and wastewater. KZ Group has 29 employees and sales of around SEK 100 million.
On 5 July, Finnchain Oy, Finland, was acquired to become part of the Industrial Process business area. Finnchain is a market leader in the design, manufacture and delivery of chain-driven sludge conveyor systems that optimize the cleaning of wastewater and desalination of seawater. Finnchain has 20 employees and sales of approximately EUR 7 million.
On 3 August, Tritech Solutions AB, Sweden, was acquired to become part of the Automation business area. Tritech Solutions delivers customized embedded computer systems, primarily to OEM-customers within industrial automation, medical technology, telecommunication and transportation. The company has 8 employees and sales of around SEK 60 million.
On 1 September, Systerra Computer GmbH (”Systerra”), Germany, was acquired to become part of the Automation business area. Systerra delivers high-end standard, customized and own products within embedded computer systems and network solutions. The company has 16 employees and sales of around EUR 9,5 million.
The purchase price allocation calculations for the acquisitions completed during the period 1 April – 30 September 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:
Net sales, |
|Elkome Group Oy, Finland||April, 2020||85||38||Automation|
|Peter Andersson AB, Sweden||April, 2020||30||9||Energy|
|Valutec Group AB, Sweden||April, 2020||350||45||Industrial Process|
|Fluidcontrol Oy, Finland||September, 2020||41||20||Components|
|Kaptas Oy, Finland||September, 2020||41||27||Automation|
|Elsystem i Perstorp AB, Sweden||September, 2020||40||18||Automation|
|Martin Bruusgaard AS, Norway||September, 2020||108||30||Industrial Process|
|Satco Komponent AB, Sweden||October, 2020||18||2||Components|
|Skyltar & Märken Gruppen AB, Sweden||October, 2020||60||23||Energy|
|OF-Beteiligungs AG, Switzerland||December, 2020||170||35||Power Solutions|
|Powernor AS, Norway||January, 2021||35||6||Power Solutions|
|Synective Labs AB, Sweden||January, 2021||30||27||Automation|
|Impact Air Systems Ltd. and Impact Technical Services Ltd., Great Britain||January, 2021||95||33||Industrial Process|
|Fairfield Trading Company Ltd., Great Britain||March, 2021||37||8||Power Solutions|
Net sales, |
|ESi Controls Ltd., Great Britain||April, 2021||95||15||Power Solutions|
|Hydro-Material Oy, Finland||April, 2021||50||5||Components|
|IETV Elektroteknik AB, Sweden||May, 2021||80||38||Energy|
|AVT Industriteknik AB, Sweden||May, 2021||70||42||Automation|
|EK Power Solutions AB, Sweden||July, 2021||40||25||Components|
|KZ moder AB, Sweden||July, 2021||100||29||Industrial Process|
|Finnchain Oy, Finland||July, 2021||70||20||Industrial Process|
|Tritech Solutions AB, Sweden||August, 2021||60||8||Automation|
|Systerra Computer GmbH, Germany||September, 2021||95||16||Automation|
|ABH Stromschienen GmbH, Germany||October, 2021||100||22||
|Ko Hartog Verkeerstechniek B.V., Netherlands||October, 2021||80||18||Energy|
* Refers to assessed condition at the time of acquisition on a full-year basis.
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 330 million on Group net sales, about SEK 40 million on operating profit and about SEK 30 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 97 million. The contingent purchase considerations fall due for payment within three years and the outcome is subject to a maximum of SEK 116 million.
Transaction costs for acquisitions that resulted in an ownership transfer during the period, amounted to SEK 6 million (5) and are reported under Selling expenses.
Revaluation of contingent consideration had a negative net effect of SEK 4 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:
|SEKm||Carrying amount at acquisition date||Adjustment to fair value||Fair value|
|Intangible non-current assets||2||293||295|
|Other non-current assets||16||16|
|Other current assets||257||257|
|Deferred tax liability/tax asset||-3||-63||-66|
|Acquired net assets||225||230||455|
|Non-controlling interests 2)||-10|
|Less: cash and cash equivalents in acquired businesses||-125|
|Less: consideration not yet paid||-111|
|Effect on the Group’s cash and cash equivalents||502|
|1) Goodwill is justified by expected future sales trend and profitability as well as the personnel included in the acquired companies.|
|2) Non-controlling interests have been measured at fair value, which entails that goodwill is also reported for non-controlling interests.|
|3) The consideration is stated excluding acquisition expenses.|