Addnode Group (ANOD) CMD 2025 summary

Strategy and Business Model

• Pursues a 2X growth strategy driven by organic expansion and frequent acquisitions, targeting sectors like urban development, infrastructure, energy, government, and industry, with a focus on mission-critical digital solutions and high customer retention.

• Decentralized governance empowers division CEOs with P&L responsibility, fostering a culture of simplicity, innovation, and constant improvement, supported by group-wide initiatives in technology, cybersecurity, and talent.

• High recurring revenue (63% in 2025), with bundled offerings of own and partner software plus services, ensuring predictability and strong customer retention.

• International presence in 20 countries and 205 companies, with recent expansion into the US and Brazil, and plans for further geographic growth through acquisitions.

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

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.

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

• Margin improvement driven by organic efficiencies, new technology, and a shift to an agency model for partner software, raising margins and comparability.

• Strong cash generation and resilient balance sheet, with capital allocation focused on organic investment, strategic M&A, and consistent dividends.

Division 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 focus.

• PLM (TECHNIA): SEK 1.8 billion net sales, 68–70% recurring revenue, global leader in Dassault Systèmes solutions, focus on operational efficiency and 3DEXPERIENCE platform.

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

• All divisions emphasize market leadership, own IP development, and targeted M&A to strengthen positions and expand offerings.

• Continued expansion in Europe and the Americas, with a focus on growing technology and services portfolios.