Slide 1: Year-end report January – December 2023
YEAR-END REPORT JANUARY – DECEMBER 2023 2 FEBRUARY 2024
Slide 2: Presentation of Addnode Group's year-end report
PRESENTATION OF ADDNODE GROUP’S Year-end report January – December 2023 JOHAN ANDERSSON KRISTINA E MACKINTOSH CEO CFO johan.andersson@addnodegroup.com kristina.mackintosh@addnodegroup.com +46 70 420 58 31 +46 70 633 89 90 2 YEAR-END REPORT JANUARY–DECEMBER 2023
Slide 3: Agenda
AGENDA Year-end report January – December 2023 1. Addnode Group in brief 2. 2023 3. Q4 2023 4. Sustainability 5. Q&A 6. Appendix a) Investment case b) Acquisitions 2023, 2022, 2021, 2020 c) Shareholders, December 31, 2023 d) Share performance, 1 year 3 YEAR-END REPORT JANUARY–DECEMBER 2023
Slide 4: This is Addnode Group
ADDNODE GROUP This is Addnode Group Breakdown of net sales by geography, Q4’23 International group providing digital solutions for sustainable design, product data Other Sweden 27% management, digital twins, efficient 15% management of real estate and facilities, and effective public administration.
Slide 5: Key financials 2023
KEY FINANCIALS 2023 Net sales (SEK M) Share of recurring revenue 7,412 70% (6,225) (68%) Cash flow from operating EBITA (SEK M) activities (SEK M) 640 485 (728) (714) 5 YEAR-END REPORT JANUARY–DECEMBER 2023
Slide 6: Q4 2023: Growth, Stable Earnings and Cash Flow
ADDNODE GROUP Q4 2023: Growth, Stable Earnings and Cash Flow Highlights Q4 Q4 Full-year • Net sales growth 16% 2023 2022 Change 2023 ◦ Currency adjusted organic growth -2% Net sales, SEK M 2,078 1,786 16% 7,412 ◦ Recurring revenue SEK 1,458 m (1,193) EBITA, SEK M 196 200 -2% 640 EBITA margin, % 9.4
Slide 7: Continued high share of recurring revenue, 70% of net sales in Q4'23
ADDNODE GROUP Continued high share of recurring revenue, 70% of net sales in Q4’23 Breakdown of net sales, SEK m Breakdown of net sales by Breakdown of net sales by Q4 2019–2023 category, Q4’23 geography, Q4’23 1,786 2,078 Other Sweden Services Licenses Other 1% 27% 24% 5% 15% 97 106 933 921 1,114 G
Slide 8: Three divisions
ADDNODE GROUP Three divisions Share of Net Sales* Share of EBITA* Q4 2023 Q4 2023 Process Design Process Management, Management, Management, Design 16% 60% 30% Management, 45% Product Lifecycle Management, 24% Product Lifecycle Management, 25% Addnode Group Net sales Q4 2023: SEK 2,078 m Addnode Gro
Slide 9: Design Management: Cost reductions and positive impact from TeamD3
DESIGN MANAGEMENT Cost reductions and positive impact from TeamD3 Highlights Q4 Q4 Full-year • Net sales growth 24%, currency adjusted organic 2023 2022 Change 2023 growth -6% Net sales, SEK M 1,246 1,004 24% 4,292 ◦ Demand in Europe stable, but US construction and real estate market still EBITA, SE
Slide 10: Design Management: New transaction model for Autodesk business announced
DESIGN MANAGEMENT New transaction model for Autodesk business announced Transition from existing VAR model to new transaction model is expected to happen over a two-year period (2024/2025) • Net sales and COGS will be reduced ◦ Symetri will get a commission on the order, of equal or similar size to
Slide 11: Design Management: New transaction model – higher margins 2025
DESIGN MANAGEMENT NEW TRANSACTION MODEL – HIGHER MARGINS 2025 Current New This is only an illustrative VAR MODEL AGENCY MODEL Change example of differences Autodesk subscription 850 213 -637 between VAR and AGENCY Other 3p software 50 50 0 MODEL. It illustrates only expected changes because Own tech
Slide 12: Product Lifecycle Management: Organic growth and positive impact of cost savings
PRODUCT LIFECYCLE MANAGEMENT Organic growth and positive impact of cost savings Highlights Q4 Q4 Full-year • Net sales increased by 10%, currency adjusted organic 2023 2022 Change 2023 growth 4% Net sales, SEK M 499 455 10% 1,884 ◦ Market conditions in UK, Germany and USA stable, while sales in Nord
Slide 13: Process Management: Solid performance in tougher market
PROCESS MANAGEMENT Solid performance in tougher market Highlights Q4 Q4 Full-year • Net sales increased by 3%, currency adjusted organic 2023 2022 Change 2023 growth 3% Net sales, SEK M 346 335 3% 1,281 ◦ The number of tenders are lower compared with the preceding year, but the EBITA, SEK M 67 60 12
Slide 14: Process Management: Merger of S-Group Solutions and Sokigo
PROCESS MANAGEMENT Merger of S-Group Solutions and Sokigo • The new company Sokigo will consist of almost 300 employees • Sokigo will now be able to offer Swedish municipalities strengthened competence in sustainable urban development and an uninterrupted digital urban development process • Joint ex
Slide 15: Process Management: Icebound
PROCESS MANAGEMENT Icebound • Based on the offering to the forest sector in the subsidiary Sokigo, a new company has been formed under the name Icebound • Based on its existing product portfolio, as well as its competence and experience in geographic information systems (GIS) and geodata, Icebound w
Slide 16: Process Management: Acquisition of Jetas Quality Systems
PROCESS MANAGEMENT Acquisition of Jetas Quality Systems • A well-reputed Swedish supplier of case management systems for issues and work orders within public transport and property management • Will be integrated into Forsler & Stjerna to strengthen its offer to Sweden's public transportation sector
Slide 17: Consolidated cash flow Q4 and full year 2023
CONSOLIDATED CASH FLOW Q4 and Full year 2023 Q4 Q4 Cash flow, SEK m 2023 2022 Change 2023 2022 Change Operating profit 135 149 -14 410 527 -117 Adjustments for non-cash items 97 84 13 361 294 67 Other -71 -45 -26 -198 -144 -54 Cash flow from operations before working capital changes 161 188 -27 573
Slide 18: Consolidated financial position December 31, 2023
CONSOLIDATED FINANCIAL POSITION December 31, 2023 Dec 31, Dec 31, Balance sheet, SEK m 2023 2022 Change Intangible non-current assets 3,949 3,409 540 Other non-current assets 417 276 141 Net working capital -543 -598 55 Total assets 3,823 3,087 737 Equity 2,116 2,005 111 Provisions, taxes and other
Slide 19: Sustainability agenda
SUSTAINABILITY AGENDA ❶ ❷ ❸ ❹ Digital solutions that Care for people and The way we work with Long-term financial contribute to the planet in our own our partners and viability sustainable operations suppliers development 5 Sustainability management and governance 19 YEAR-END REPORT JANUARY–DECEMBER
Slide 20: Sustainability cases Q4 2023
SUSTAINABILITY CASES Q4 2023 Full versions at https://www.addnodegroup.com/en/sustainability 3D Models and Digital Drawings Digital Twins of Vehicles for Digital Signalling System of Historic Buildings Last-Mile Deliveries Modernises Railways As part of an assignment for the Nordic Museum in TECHNIA
Slide 21: Addnode Group as an investment
ADDNODE GROUP AS AN INVESTMENT ❶ ❷ ❸ ❹ Sustainable digital solutions Organic and acquisition-led Attractive business model Diversification spreads risk • We provide digital solutions for growth • High share of recurring revenues. • We are active in numerous design, simulation, product data • Our str
Slide 22: Questions & Answers
QUESTIONS & ANSWERS 22 YEAR-END REPORT JANUARY–DECEMBER 2023
Slide 23: Appendix
APPENDIX 23 YEAR-END REPORT JANUARY–DECEMBER 2023
Slide 24: Organic and acquisition-led growth strategy
ADDNODE GROUP Organic and acquisition-led growth strategy ORGANIC ACQUISITIONS Decentralised Complementary responsibility and business or authority markets Strategic support Values based leadership Synergies and collaboration Attractive valuation OUR STRATEGY We create sustainable growth in value by
Slide 25: Acquisitions 2024 YTD
ACQUISITIONS 2024 YTD Efficture Jetas Quality Systems Efficture develops and offers Jetas develops and offers proprietary software for forest proprietary case management and timber management. Will systems for issues and work complement Icebound’s offer to orders within public transport the forest s
Slide 26: Acquisitions 2023
ACQUISITIONS 2023 FAST2 Key Performance Team D3 Leading Swedish supplier of Partner to Dassault Systèmes, One of the largest Autodesk business systems for real estate operating in North America and partners in the US, with a focus companies. Its proprietary Europe. Focused on Model- in the Manufactu
Slide 27: Acquisitions 2022
ACQUISITIONS 2022 Claytex Desys Microdesk Decisive Claytex specializes in advanced DESYS service offering is based Microdesk is a Platinum partner Rule-based decision simulation and virtual testing, on Dassault Systèmes’ platform, to Autodesk and provides con- management systems. Assists with focus
Slide 28: Acquisitions 2022, cont.
ACQUISITIONS 2022, cont. JBL JBL’s service offering is based on Dassault Systèmes’ platform, the team adds resources and competence within oil and gas, infrastructure and renewable energy. Division Product Lifecycle Management New employees 2 Annual sales 15 SEK M 28 YEAR-END REPORT JANUARY–DECEMBER
Slide 29: Acquisitions 2021
ACQUISITIONS 2021 S-Group Solutions Elpool Procad Budsoft Specialised in business- Develops digital solutions Autodesk partner and a Budsoft is a Poland related GIS solutions for that offers many features that trusted advisor to many of based, Dassault Systèmes municipalities, water and is used by p
Slide 30: Acquisitions 2020
ACQUISITIONS 2020 Excitech Unizite Netpublicator Scanscot Technology Largest Autodesk partner in UK Norwegian developer of a Develops digital services for Swedish Dassault Systèmes market and leading provider of mobile field tool that makes efficient document and meeting partner. Nordic leader in de
Slide 31: Shareholders December 31, 2023
SHAREHOLDERS December 31, 2023 Owner Shares class A Shares class B Share capital, % Voting rights, % Managements shareholdings Aretro Capital Group AB 2 501 328 4 738 496 5,4 17,5 Verg AB 1 446 668 1,1 8,5 • Johan Andersson, CEO, 400,000 shares and Lannebo Fonder 13 424 136 10 7,9 38,000 call option
Slide 32: Share price development 1 year
ADDNODE GROUP, SHARE PRICE DEVELOPMENT 1 YR (2023-01-31 – 2024-01-31) 23-01-31 24-01-31 Change, % Addnode Group 104.00 93.95 -9.7 Nasdaq Stockholm 843.33 888.52 5.4 • Average daily traded volume in Q4 2023 reached 194 thousand shares, down from 238 thousand in Q3 2023. • Total number of shareholders