OTHER FINANCIAL INFORMATION
Profitability, financial position and cash flow
The return on equity at the end of the period was 31 percent (28), and return on capital employed was 21 percent (19). Return on working capital P/WC (EBITA in relation to working capital) amounted to 65 percent (66).
At the end of the period the equity ratio amounted to 35 percent (35). Equity per share, excluding non-controlling interest, totalled SEK 17.70 (13.65). The Group's net debt at the end of the period amounted to SEK 4,586 million (3,299), excluding pension liabilities of SEK 264 million (344). The net debt/equity ratio, calculated on the basis of net debt excluding provisions for pensions amounted to 0.9 (0.8).
Cash and cash equivalents consisting of cash and bank equivalents and approved but non-utilised credit facilities amounted to SEK 1,622 million (1,654) at 31 December 2022.
Cash flow from operating activities amounted to SEK 1,100 million (805) during the period. Company acquisitions and disposals including settlement of contingent consideration regarding acquisitions implemented in previous years amounted to SEK 1,135 million (711). Investments in non-current assets totalled SEK 100 million (72) and disposal of non-current assets amounted to SEK 5 million (7). Repurchase of treasury shares amounted to SEK 31 million (0) and repurchase of call options amounted to SEK 58 million (37). Exercised and issued call options totalled SEK 41 million (40). Dividend paid to the shareholders of the Parent Company totalled SEK 485 million (323), corresponding to SEK 1.80 (1.20) per share. The dividend was paid out in the second quarter.
Employees
At the end of the period, the number of employees was 3,861 compared to 3,556 at the beginning of the financial year. During the period, completed acquisitions resulted in an increase of the number of employees by 224. The average number of employees in the latest twelve month period was 3,663.
Ownership structure
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 | -3,229,272 | 1.2% | 0.8% | |
| Total number of shares after repurchases | 269,564,712 |
Addtech has four outstanding call option programmes for a total of 2,610,980 shares. Call options issued on repurchased shares entail a dilution effect of about 0.1 percent during the latest twelve 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 |
| 2022/2026 | 825,910 | 825,910 | 0.3% | 180.10 | 180.10 | 8 Sep 2025 - 10 Jun 2026 |
| 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 | 4,250 | 17,000 | 0.0% | 321.80 | 80.45 | 5 Sep 2022 - 2 Jun 2023 |
| Total | 1,848,230 | 2,610,980 |
Acquisitions and disposals
During the period, 1 April to 30 September 2022 the following acquisitions were completed; Intertrafo Oy, Finland, Arruti Group, Spain, and Allied Insulators Ltd., Great Britain, was acquired to become part of the Energy business area. Electric Control Systems Automation AS, Norway, C.K. Environment A/S, Denmark, and Gotapack International AB, Sweden, was acquired to become part of the Process Technology business area. Impulseradar Sweden AB, Sweden, was acquired to become part of the Industrial Solutions business area.
On 1 December, Advanced Valve Solutions B.V., Netherlands, was acquired to become part of the Process Technology business area. AVS is a niche provider of engineered high-end valves, steam attemperators and valve systems mainly to the power generation industry. The company has 27 employees and sales of around EUR 13 million.
The purchase price allocation calculations for the acquisitions completed during the period 1 April - 31 December 2021 have now been finalised. No significant adjustments have been made to the calculations. Acquisitions completed as of the 2021/2022 financial year are distributed among the Group’s business areas as follows:
| Acquisitions 2021/2022 | Closing | Acquired share, % | Net sales, SEKm* | Number of employees* | Business Area |
| ESi Controls Ltd., Great Britain | April, 2021 | 100 | 95 | 15 | Energy |
| Hydro-Material Oy, Finland | April, 2021 | 100 | 50 | 5 | Industrial Solutions |
| IETV Elektroteknik AB, Sweden | May, 2021 | 100 | 80 | 38 | Energy |
| AVT Industriteknik AB, Sweden | May, 2021 | 100 | 70 | 42 | Automation |
| EK Power Solutions AB, Sweden | July, 2021 | 100 | 40 | 25 | Electrification |
| KZ moder AB, Sweden | July, 2021 | 100 | 100 | 29 | Process Technology |
| Finnchain Oy, Finland | July, 2021 | 90 | 70 | 20 | Process Technology |
| Tritech Solutions AB, Sweden | August, 2021 | 100 | 60 | 8 | Automation |
| Systerra Computer GmbH, Germany | September, 2021 | 100 | 95 | 16 | Automation |
| ABH Stromschienen GmbH, Germany | October, 2021 | 100 | 100 | 22 | Electrification |
| Ko Hartog Verkeerstechniek B.V., Netherlands | October, 2021 | 100 | 80 | 18 | Energy |
| Jolex AB, Sweden | November, 2021 | 100 | 20 | 1 | Electrification |
| Fey Elektronik GmbH, Germany | March, 2022 | 90 | 570 | 160 | Electrification |
| Acquisitions 2022/2023 | Closing | Acquired share, % | Net sales, SEKm* | Number of employees* | Business Area |
| Intertrafo Oy, Finland | April, 2022 | 100 | 30 | 15 | Energy |
| Electric Control Systems Automation AS, Norway | April, 2022 | 100 | 75 | 31 | Process Technology |
| Impulseradar Sweden AB, Sweden | April, 2022 | 88 | 80 | 27 | Industrial Solutions |
| C.K. Environment A/S, Denmark | May, 2022 | 100 | 40 | 14 | Process Technology |
| Arruti Group, Spain | June, 2022 | 100 | 280 | 90 | Energy |
| Gotapack International AB, Sweden | July, 2022 | 100 | 25 | 5 | Process Technology |
| Allied Insulators Ltd., Great Britain | August, 2022 | 100 | 75 | 15 | Energy |
| Advanced Valve Solutions B.V., Netherlands | December, 2022 | 100 | 140 | 27 | Process Technology |
| MCS Europe Group B.V., Netherlands | January, 2023 | 100 | 75 | 19 | Automation |
| Drivhuset AB, Sweden | January, 2023 | 100 | 35 | 7 | Industrial Solutions |
* 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 2022, their impact would have been an estimated SEK 640 million on Group net sales, about SEK 75 million on operating profit and about SEK 54 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 140 million. The contingent purchase considerations fall due for payment within three years and the outcome is subject to a maximum of SEK 175 million.
Transaction costs for acquisitions that resulted in an ownership transfer during the period, amounted to SEK 8 million (9) and are reported under Selling expenses.
Revaluation of contingent consideration had a positive net effect of SEK 23 million (5) 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:
|
Fair value SEKm | 31 Dec 2022 | 31 Dec 2021 |
| Intangible non-current assets | 491 | 367 |
| Other non-current assets | 36 | 18 |
| Inventories | 143 | 139 |
| Other current assets | 342 | 301 |
| Deferred tax liability/tax asset | -111 | -84 |
| Other liabilities | -148 | -203 |
| Acquired net assets | 753 | 538 |
| Goodwill 1) | 485 | 363 |
| Non-controlling interests 2) | -28 | -10 |
| Consideration 3) | 1,210 | 891 |
| Less: cash and cash equivalents in acquired businesses | -128 | -138 |
| Less: consideration not yet paid | -140 | -125 |
| Effect on the Group’s cash and cash equivalents | 942 | 628 |
| 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 transaction costs for the acquisitions. | ||