Slide 1: Interim Report January–June 2023
INTERIM REPORT JANUARY – JUNE 2023 14 JULY 2023
Slide 2: Interim Report January–June 2023
2 INTERIM REPORT JANUARY–JUNE 2023
Slide 3: Presentation of Addnode Group's Interim Report January–June 2023
PRESENTATION OF ADDNODE GROUP’S Interim report January – June 2023 JOHAN ANDERSSON LOTTA JARLERYD CEO CFO johan.andersson@addnodegroup.com lotta.jarleryd@addnodegroup.com +46 70 420 58 31 +46 72 247 92 01 3 INTERIM REPORT JANUARY–JUNE 2023
Slide 4: Agenda
AGENDA Interim report January – June 2023 1. Addnode Group in brief 2. Q2 2023 3. Sustainability 4. Q&A 5. Appendix a) Investment case b) Acquisitions 2023, 2022, 2021, 2020 c) Shareholders, June 30, 2023 d) Share performance, 1 year 4 INTERIM REPORT JANUARY–JUNE 2023
Slide 5: Addnode Group: Digital Solutions for a Sustainable Future
ADDNODE GROUP Digital Solutions for a Sustainable Future Addnode Group generate sustainable value growth by acquiring new businesses and actively support our R12 Q2 2023 Full year 2022 subsidiaries to drive organic growth. We are organised in three divisions: Net Sales EBITA • Design Management SEK
Slide 6: Q2 2023: Weaker earnings than previous year
ADDNODE GROUP Q2 2023: Weaker earnings than previous year. Acquisition strengthening the position in the USA. Highlights Q2 Q2 Rolling • Net sales increased by 4% to SEK 1,554 m 2023 2022 Change 12m ◦ Design Management division net sales experienced lower Net sales, SEK M 1,554 1,489 4% 3,526 sales
Slide 7: Continued high share of recurring revenue, 65% of net sales
ADDNODE GROUP Continued high share of recurring revenue, 65% of net sales in Q2’23 Breakdown of net sales, SEK m Breakdown of net sales by Breakdown of net sales by Q2 2019–2023 category, Q2’23 geography, Q2’23 1,489 1,554 Other 1% Licenses Other Sweden Services 94 6% 16% 33% 67 28% 864 846 1,002 Ge
Slide 8: Three divisions
ADDNODE GROUP Three divisions Share of Net Sales* Share of EBITA* Q2 2023 Q2 2023 Process Design Process Design Management, 20% Management, Management, Management, 50% 47% 38% Product Lifecycle Management, Product 30% Lifecycle Management, 15% Addnode Group Net sales Q2 2023: SEK 1,554 m Addnode Gro
Slide 9: Design Management: Challenging quarter
DESIGN MANAGEMENT Challenging quarter Highlights Q2 Q2 Rolling • Net sales decreased by 3% to SEK 778 m, currency 2023 2022 Change 12m adjusted organic growth -9% Net sales, SEK M 778 806 -3% 3,972 ◦ The Autodesk business slowed down and had tough comps. EBITA, SEK M 48 80 -40% 408 EBITA margin, % 6
Slide 10: Design Management Symetri: Acquisition of Team D3
DESIGN MANAGEMENT Symetri: Acquisition of Team D3 • Team D3 is an Autodesk Platinum Partner with net sales of 120 MUSD and 200 employees located in multiple sites across the US • Addnode Group’s company Symetri will together with Team D3 be the #1 Global Autodesk Partner ◦ Microdesk established Syme
Slide 11: Design Management Bimify: An early investment
DESIGN MANAGEMENT Bimify: An early investment to leverage market presence • Bimify is developing a digital platform for creation and maintenance of digital building models that is powered by machine learning and automated technologies • BIM models drive sustainability of the built environment, build
Slide 12: Product Lifecycle Management: Organic growth and restructuring measures
PRODUCT LIFECYCLE MANAGEMENT Organic growth and restructuring measures Highlights Q2 Q2 Rolling • Net sales increased by 19% to SEK 468 m, currency 2023 2022 Change 12m adjusted organic growth 6% Net sales, SEK M 468 394 19% 1,749 ◦ Market conditions in Germany, the UK and USA were stable in EBITA,
Slide 13: Process Management: Organic growth and increased EBITA
PROCESS MANAGEMENT Organic growth and increased EBITA Highlights Q2 Q2 Rolling • Net sales increased by 8% to SEK 320 m, organic 2023 2022 Change 12m growth 5% Net sales, SEK M 320 297 8% 1,252 ◦ Municipalities and public authorities showed some restraint in EBITA, SEK M 60 56 7% 234 terms of invest
Slide 14: Consolidated Cash Flow Q2 2023
CONSOLIDATED CASH FLOW Q2 2023 Q2 Q2 YTD Jun YTD Jun Cash flow, SEK m 2023 2022 Change 2023 2022 Change Operating profit 56 101 -45 205 235 -30 Adjustments for non-cash items 94 79 15 174 124 50 Other -48 -31 -17 -86 -61 -25 Cash flow from operations before working capital changes 102 149 -47 293 29
Slide 15: Consolidated Financial Position June 30, 2023
CONSOLIDATED FINANCIAL POSITION June 30, 2023 Jun 30, Jun 30, Dec 31, Balance sheet, SEK m 2023 2022 Change 2022 Change Intangible non-current assets 3,558 3,385 173 3,409 149 Other non-current assets 273 335 -62 276 -3 Net working capital -716 -620 -96 -598 -118 Total assets 3,115 3,100 15 3,087 29
Slide 16: 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 16 INTERIM REPORT JANUARY–JUNE 2023
Slide 17: Sustainability Cases Q2 2023
SUSTAINABILITY CASES Q2 2023 Full versions at https://www.addnodegroup.com/en/sustainability Digitalised product development with Electrification with shorter develop- Digital traffic planning for better reduced carbon footprint ment lead-times and lower cost public transport Symetri, in the Design
Slide 18: Organic and Acquisition-Led Growth Strategy
ORGANIC AND ACQUISITION-LED GROWTH STRATEGY Yearly average EBITA growth 2013-2022: 23% SEK m EBITA 800 728 ORGANIC ACQUISITIONS 700 Decentralised Complementary responsibility and business or 600 authority markets 500 461 Strategic support Values based leadership 400 356 Synergies and 327 298 collabo
Slide 19: Questions & Answers
QUESTIONS & ANSWERS 19 INTERIM REPORT JANUARY–JUNE 2023
Slide 20: Appendix
APPENDIX 20 INTERIM REPORT JANUARY–JUNE 2023
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: 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 23: Acquisitions 2023 YTD
ACQUISITIONS 2023 YTD 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 Manuf
Slide 24: 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 25: 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 25 INTERIM REPORT JANUARY–JUNE 2023
Slide 26: 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 27: 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 28: Shareholders June 30, 2023
SHAREHOLDERS June 30, 2023 Shares class A Shares class B Share capital, % Voting rights, % Managements shareholdings Aretro Capital Group AB* 2,041,328 5,198,496 5.4 15.1 • Johan Andersson, CEO, 393,912 shares and Verg AB 1,446,668 1.1 8.5 38,000 call options for 92,000 B-shares SEB Fonder 12,630,67
Slide 29: Addnode Group, Share Price Development 1 Year
ADDNODE GROUP, SHARE PRICE DEVELOPMENT 1 Year (2022-06-30 – 2023-07-07) SEK Volume ('000) 140 2 000 22-06-30 23-07-07 Change, % Addnode Group 83.40 82.80 -1 1 800 Nasdaq Stockholm 734.28 829.48 13 120 1 600 • Average daily traded volume in Q1 2023 100 1 400 reached 246 thousand shares, up from 150 t