Profitability, financial position and cash flow
The return on equity at the end of the financial year was 32 percent (30), and return on capital employed was 22 percent (20). Return on working capital P/WC (EBITA in relation to working capital) amounted to 66 percent (69).

At the end of the financial year the equity ratio amounted to 36 percent (34). Equity per share, excluding non-controlling interest, totalled SEK 19.25 (14.60). The Group's net debt at the end of the financial year amounted to SEK 4,107 million (3,747), excluding pension liabilities of SEK 218 million (314). The net debt/equity ratio, calculated on the basis of net debt excluding provisions for pensions amounted to 0.7 (0.9).

Cash and cash equivalents consisting of cash and bank equivalents and approved but non-utilised credit facilities amounted to SEK 2,113 million (1,452) at 31 March 2023.

Cash flow from operating activities amounted to SEK 1,911 million (1,121) during the financial year. Company acquisitions and disposals including settlement of contingent consideration regarding acquisitions implemented in previous years amounted to SEK 1,204 million (1,139). Investments in non-current assets totalled SEK 192 million (125) and disposal of non-current assets amounted to SEK 9 million (9). Repurchase of treasury shares amounted to SEK 31 million (0) and repurchase of call options amounted to SEK 58 million (37). Exercised and issued call options totalled SEK 41 million (47). Dividend paid to the shareholders of the Parent Company totalled SEK 485 million (323), corresponding to SEK 1.80 (1.20) per share. The dividend was paid out in the second quarter.

Employees
At the end of the financial year, the number of employees was 3,911 compared to 3,556 at the beginning of the financial year. During the period, completed acquisitions resulted in an increase of the number of employees by 250. The average number of employees in the latest 12-month period was 3,781.

Ownership structure
At the end of the period the share capital amounted to SEK 51.1 million.

Addtech has four outstanding call option programmes for a total of 2,610,980 shares. Call options issued on repurchased shares entail a dilution effect of about 0.1 percent during the latest 12-month period. Addtech's own shareholdings fully meet the needs of the outstanding call option programmes.

Acquisitions and disposals

During the period, 1 April to 31 December 2022 the following acquisitions were completed; Intertrafo Oy, Finland, Arruti Group, Spain, and Allied Insulators Ltd., Great Britain, to become part of the Energy business area. Electric Control Systems Automation AS, Norway, C.K. Environment A/S, Denmark, Gotapack International AB, Sweden, and Advanced Valve Solutions B.V., Netherlands, to become part of the Process Technology business area. Impulseradar Sweden AB, Sweden, to become part of the Industrial Solutions business area.

On 2 January, MCS Europe Group B.V., Netherlands, was acquired to become part of the Automation business area. MCS is a leading supplier of products and services for Industrial mobile networks and Industrial IoT in the Netherlands and Belgium. The company has 19 employees and sales of around EUR 7 million.

On 10 January, Drivhuset AB, Sverige, was acquired to become part of the Industrial Solutions business area. Drivhuset is a leading supplier of frequency converters on the Swedish market. The company also offers other critical components for electric drive systems such as motor controls and soft starters. The company has 7 employees and sales of around SEK 35 million.

The purchase price allocation calculations for the acquisitions completed during the period 1 April 2021 - 31 March 2022 have now been finalised. No significant adjustments have been made to the calculations. Acquisitions completed as of the 2021/2022 financial year are distributed among the Group’s business areas as follows:

If all acquisitions which have taken effect during the financial year had been completed on 1 April 2022, their impact would have been an estimated SEK 995 million on Group net sales, about SEK 125 million on operating profit and about SEK 90 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 financial year, the discounted value amounts to SEK 140 million. The contingent purchase considerations fall due for payment within three years and the outcome is subject to a maximum of SEK 189 million. 

Transaction costs for acquisitions that resulted in an ownership transfer during the financial year, amounted to SEK 10 million (10) and are reported under Selling expenses.

Revaluation of contingent consideration had a positive net effect of SEK 40 million (8) during the financial year. 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 year:

Parent Company
Parent Company net sales during the financial year amounted to SEK 83 million (64) and profit after financial items was SEK 676 million (-31). Net investments in non-current assets were SEK 0 million (0). The Parent Company's financial net assets was SEK 124 million (-350) at the end of the financial year.