OTHER FINANCIAL INFORMATION
Profitability, financial position and cash flow
The return on equity at the end of the period was 29 percent (31), and return on capital employed was 19 percent (21). Return on working capital P/WC (EBITA in relation to working capital) amounted to 54 percent (54).
At the end of the period the equity ratio amounted to 34 percent (35). Equity per share, excluding non-controlling interest, totalled SEK 44.00 (40.60). The Group's net debt at the end of the period amounted to SEK 2,855 million (2,282) excluding pension liabilities of SEK 328 million (313). 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 1,949 million (1,000) at 30 June 2020.
Cash flow from operating activities amounted to SEK 324 million (253) during the period. Company acquisitions and disposals including settlement of contingent consideration regarding acquisitions implemented in previous years amounted to SEK 730 million (249). Investments in noncurrent assets totalled SEK 16 million (33) and disposal of non-current assets amounted to SEK 1 million (2). Repurchase of call options amounted to SEK 0 million (12) and issued call options amounted to SEK 17 million (18).
At the end of the period, the number of employees was 3,022, compared to 2,981 at the beginning of the financial year. During the period, completed acquisitions and disposals resulted in a net increase of the number of employees by 92. The average number of employees in the latest 12-month period was 2,959.
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||3,229,500||32,295,000||4.7%||33.2%|
|Class B shares, 1 vote per share||64,968,996||64,968,996||95.3%||66.8%|
|Total number of shares before repurchases||68,198,496||97,263,996||100.0%||100.0%|
|Repurchased class B shares||-942,918||1.4%||1.0%|
|Total number of shares after repurchases||67,255,578|
Addtech has three outstanding call option programmes for a total of 900,000 shares. Call options issued on repurchased shares entail a dilution effect of about 0.2 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||Expiration period|
|2019/2023||300,000||300,000||0.4%||321.80||5 Sep 2022 - 2 Jun 2023|
|2018/2022||300,000||300,000||0.4%||232.90||6 Sep 2021 - 3 Jun 2022|
|2017/2021||300,000||300,000||0.4%||178.50||14 Sep 2020 - 4 Jun 2021|
Acquisitions and disposals
On 1 April, Elkome Group Oy, Finland, was acquired to become part of the Automation business area. Elkome develops, integrates and delivers solutions for applications in industrial IoT primarily for industrial production, smart cities and infrastructure. The offering includes customized computer systems, test systems, info kiosks, software, sensors and industrial communication. The company has sales of about EUR 8 million and 38 employees.
On 2 April Peter Andersson AB, Sweden, was acquired to become part of the Energy business area. Andersson System supplies both trading products and own products within electrical accessories for office and kitchen environments, to the Swedish and Norwegian markets.The products are sold through retailers of office furniture, office interiors, AV equipment, computer accessories and kitchen furnishings. The company has sales of about SEK 30 million and 9 employees.
On 8 April Valutec Group AB, Sweden, was acquired to become part of the Industrial Process business area. Valutec is one of the world’s leading manufacturers of timber kilns to the forest industry. The company has sales of about SEK 350 million and 45 employees.
Acquisitions completed as of the 2019/2020 financial year are distributed among the Group’s business areas as follows:
|Acquisitions (disposals)||Closing|| Net sales, |
|Number of employees*||Business Area|
|Omni Ray AG, Switzerland||April, 2019||330||65||Automation|
|Thurne Teknik AB, Sweden||April, 2019||100||19||Industrial Process|
|AB N.O. Rönne, Sweden||April, 2019||8||4||Industrial Process|
|Best Seating Systems Walter Tausch GmbH, Austria||May, 2019||23||5||Power Solutions|
|Thiim A/S, Denmark||June, 2019||70||15||Automation|
|Profelec Oy, Finland||July, 2019||6||2||Energy|
|BKC Products Ltd., Great Britain||August, 2019||12||5||Industrial Process|
|Promector Oy, Finland||August, 2019||24||20||Automation|
|Wireco-NB Oy, Finland||February, 2020||23||6||Energy|
|Caligo Industria Oy, Finland||February, 2020||70||9||Industrial Process|
|DMC Digital Motor Control GmbH, Germany||March, 2020||30||10||Power Solutions|
|Q-tronic B.V, Netherlands||March, 2020||45||10||Power Solutions|
|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|
* Refers to assessed condition at the time of acquisition and disposal, respectively, on a full-year basis.
Acquisitions completed during the period have had an effect of SEK 87 million on Group net sales, SEK 0 million on operating profit and SEK -2 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 99 million. The contingent purchase considerations fall due for payment within three years and the outcome is subject to a maximum of SEK 169 million.
Transaction costs for acquisitions that resulted in an ownership transfer during the period, amounted to SEK 3 million (2) and are reported under Selling expenses.
Revaluation of contingent consideration had a net effect of SEK 0 million (12) 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||22||504||526|
|Other non-current assets||23||-||23|
|Other current assets||159||-||159|
|Deferred tax liability/tax asset||-2||-107||-109|
|Acquired net assets||158||397||555|
|Less: cash and cash equivalents in acquired businesses||-107|
|Less: consideration not yet paid||-99|
|Effect on the Group’s cash and cash equivalents||716|
|1) Goodwill is justified by expected future sales trend and profitability as well as the personnel included in the acquired companies.|
|2) The consideration is stated excluding acquisition expenses.|
With the acquisition of Valutec Group AB comes a commitment to acquire the remaining 14 percent of the company. This commitment is valued to SEK 98 million and is reported as a non-current interest-bearing liability.