Addnode Group (ANOD) CMD 2025 summary

Strategy and Business Model

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

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

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

• Global presence in 20 countries and 205 companies, with recent expansion into the U.S. and Brazil, and ambitions for further international growth.

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

Financial Targets and Performance

• 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/EBITDA margin improved from 8%-9% in 2015 to 15.8% in 2025, with a target of 17%.

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

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

• Return on capital employed increased from 13.5% in 2015 to 18%-19% in recent years.

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 efficiency transformation.

• 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 margin expansion.

• Structural growth supported by digitalization, AI, smart cities, and sustainability trends.