Addnode Group (ANOD) investor relations material

Strategy and Business Model

• Pursues a 2x growth strategy through organic expansion and frequent acquisitions, focusing on mission-critical digital solutions in design, PLM, and process management for sectors like urban development, infrastructure, energy, government, and industry.

• Maintains a decentralized organization, empowering division CEOs with P&L responsibility, supported by group-level financial control, innovation programs, and a culture of simplicity and improvement.

• High recurring revenue (63%) and bundled offerings of own and third-party software and services ensure predictability, customer retention, and high switching costs.

• Prioritizes investments in own IP, internal efficiency, and price increases to drive margin expansion and differentiation.

• Global presence in 20 countries, with 2,700 employees and recent expansion into the U.S. and Brazil, aiming for further international growth.

Financial Performance and New Targets

• New financial targets: at least 15% annual EBITA/EBITDA growth, 17% EBITA/EBITDA margin, 30%-50% dividend payout, and net debt/EBITDA below 2.5x.

• EBITA margin improved from 9.6% in 2015 to 15.8% in 2025, with a target of 17%; EBITDA grew from SEK 170 million in 2015 to over SEK 900 million in 2025, with a 19% CAGR.

• Net sales reached SEK 7.8 billion in 2024, with a CAGR of 17% since 2003.

• Dividend policy remains, with SEK 960 million distributed over the past decade and 30-50% of profit after tax to be distributed, subject to sufficient net cash.

• Maintains a resilient balance sheet and strong cash generation, though recent contract payment term changes have temporarily impacted working capital.

Divisional Highlights and Growth Drivers

• Design Management: SEK 2.5 billion net sales, >20% margin, 65% recurring revenue, global leader in Autodesk solutions, and strong own IP portfolio.

• PLM (TECHNIA): SEK 1.8 billion net sales, 68-70% recurring revenue, world-leading partner to Dassault Systèmes, focus on 3DEXPERIENCE platform, and ongoing transformation for efficiency and margins.

• Process Management: SEK 1.3 billion net sales, nearly 20% margin, 48% recurring revenue, market leader in digital government solutions in Scandinavia, and high entry barriers.

• All divisions emphasize culture, operational excellence, and leveraging own IP for differentiation and customer stickiness.

• Global presence with 205 companies across continents; Sweden, USA, and UK are key markets.