STOCKHOLM, 26 OCTOBER 2016 – CEO succession from AGM 2017. Staffan Hanstorp
proposed as new Chairman of the Board.
Third quarter summary, July – September 2016

  · Net sales amounted to SEK 467.1 m (467.3)
  · EBITA was SEK 39.6 m (42.2), corresponding to an EBITA margin of 8.5 per
cent (9.0)
  · Operating profit was SEK 24.6 m (30.8), corresponding to an operating margin
of 5.3 per cent (6.6)
  · Profit after tax was SEK 17.2 m (21.7)
  · Earnings per share after dilution were SEK 0.57 (0.71)
  · Cash flow from operating activities was SEK -37.2 m (-18.0)

Nine-month summary, January – September 2016


  · Net sales amounted to SEK 1,536.3 m (1,286.4), up 19%
  · EBITA increased to SEK 107.2 m (98.5), corresponding to an EBITA margin of
7.0 per cent (7.7)
  · Operating profit was SEK 66.1 m (68.0), corresponding to an operating margin
of 4.3 per cent (5.3)
  · Profit after tax was SEK 45.5 m (50.0)
  · Earnings per share after dilution were SEK 1.50 (1.67)
  · Cash flow from operating activities was SEK 84.8 m (45.8)

Significant events during the third quarter, July – September 2016

  · Acquisition of software companies EssVision and Stamford
  · Establishment of new software company specialising in e-health and pharmacy
solutions
  · Clearance obtained to sign agreement with the City of Gothenburg after
appeal for review was denied, order
  · value of approximately SEK 35 m
  · Agreement signed with a major government agency in the area of defence and
security, order value of approximately SEK 5 m

Significant events after the end of the reporting period

  · Agreement with world-leading train manufacturer
  · Additional acquisition credit facility of SEK 200 m secured
  · Johan Andersson appointed new President and CEO from AGM 2017 and Staffan
Hanstorp proposed as new Chairman of the Board

CEO comment’s



New CEO and I am proposed as Chairman of the Board

Size and offering leading to new business

Through our expansion in recent years we have attained a strong position in the
Nordic countries as well as internationally. The acquisition of the British
company Symetri in 2014 and the German company Transcat PLM in 2015 have given
us a solid European base for our continued growth in industrial IT. This broader
geographical spread is unleashing new potential for business’ and collaborations
with major international customers. A prime example is the contract we signed
after the end of the quarter with Stadler, the Swiss train manufacturer. In the
public sector, too, we are winning new deals that are a testimony to both our
quality and prestige. During the quarter we obtained clearance following an
appeal process to sign an agreement with the City of Gothenburg for a new
planning system for the city’s home care operations. We also secured a deal with
a major government agency in the defense and security sector, where we will
implement our case management software.

Change in design management business model taking hold

We achieved growth of 19 per cent for the nine-month period, driven by organic
growth as well as acquisitions. Both net sales and EBITA for the third quarter
were level with the corresponding period a year ago. As previously communicated,
we have shifted to a new business model in our subsidiary Symetri from a licence
-based sales model to one that is now entirely subscription-based. In the near
term this transition is affecting both sales and earnings, however, over time
the change will provide us with a higher share of recurring revenue and greater
stability in our business. Taking these factors into account we had a good
quarter.

Acquisition of two software companies

We are seeing steady growth in revenue from our proprietary products, and during
the third quarter we acquired another two software companies that strengthen us
in the area of case management. Every day we evaluate acquisition candidates,
and to ensure that we can take advantage of every opportunity, we have secured
an additional acquisition credit facility worth SEK 200 m. By successively
evaluating, acquiring and developing companies in our two core businesses, we
are moving forward at a steady pace.

Change of leadership by AGM 2017

For 23 years I have been active within the company. In 1994 I paved the ground
to Addnode Group’s largest business of today and the last ten years I have been
the President and CEO for a Nasdaq listed company. We have built a solid and
profitable Group with a turnover of more than two billion SEK. Timing and place
feels right to change leadership and for me to step into a new position. Current
CFO in the Group, Johan Andersson, will overtake my responsibilities as
President and CEO from AGM 2017 and I am proposed to the position as Chairman of
the Board of Directors. I will continue to be a driving force in overall
strategic questions and remain an active part in acquisition processes -
becauase we are far from finished building the Group.

Staffan Hanstorp, President and CEO

The information in this press release is such that Addnode Group AB (publ) must
disclose in accordance with the Swedish Securities Market Act. The information
was released on 26 October 2016, at 08:30 AM CET.
For more information, please contact:
Staffan Hanstorp, President and CEO Addnode Group AB
Tel: +46 (0) 73 377 24 30, e-mail: staffan.hanstorp@addnodegroup.com
Johan Andersson, CFO Addnode Group AB
Tel: +46 (0) 704 205 831, e-mail: johan.andersson@addnodegroup.com
About Addnode Group
Addnode Group acquires, operates and develops entrepreneur-driven companies that
supply software and services to markets in which we have or can achieve a
leading position. We are one of Europe’s leading suppliers of software and
services for design, construction and product data information, and a leading
supplier of document and case management systems to public sector clients in
Sweden and Norway. More than 600,000 engineers and officials use our system
solutions on a daily basis.
We are 1,200 employees in Sweden, Austria, Denmark, Finland, Germany, India,
Norway, Slovakia, UK, US and Serbia. Net sales in 2015 amounted to SEK 1,900 M.
Addnode Group's Series B share is listed on Nasdaq Stockholm. For more
information, please visit www.addnodegroup.com