2/2/2024

speaker
Johan Andersson
CEO

to the presentation of our Q4 report for 2023. I'm CEO, Johan Andersson, and with me I have our new CFO, so Christina Elstrom-McIntosh, that I would like to introduce. So maybe let's start with Christina, who is new on the company. Maybe a short introduction before we move on with the Q4 report.

speaker
Christina Elstrom-McIntosh
CFO

Yes, thank you, Johan. I've joined Adnode in December, so I've been there almost two months. Christina Elstrom-McIntosh. I'm not new to this type of roles. I've had over 20 years experience as CFO for listed, non-listed companies, scale up, startup, etc. And I came recently from Charge Amps, which is one of the Swedish leader manufacturer of EV chargers, both software and hardware. And just before that, I was CFO for Lagercans. And I have also a background as a charter accountant. A little bit private. I got three kids that just left the house. I got a husband and a dog that is still with me in the house. So that's short from myself.

speaker
Johan Andersson
CEO

Thank you, Kristina. And hopefully you will be able to meet Kristina more going forward. So without an introduction, let's move on to our Q4 report. And as today, we'll talk about Anna Group in brief, talk a little bit short about 2023 before we move into Q4, reminding ourselves what we're doing within sustainability, and then we will open up for questions. So what is Anna Group for you who are new to us? We are an international group. We are providing digital solutions for sustainable design, product data management, digital twins, also for efficient management of real estate and facilities, and effective public administration. We are a highly decentralized structure with 2,700 employees and 20 specialized companies. Our business is supported by global trends such as digitalization, automation, urbanization, and sustainability, driving the demand for our digital solutions. Looking at our geography, big regions for us are Sweden, USA, UK, Germany and then we are also active in some in totality some 20 countries predominantly in Northern Europe and US is where you will find us. So looking at 2023, we continue to invest in new companies, software and employees. We implemented cost-efficient measures and we merged operations. At the same time, we noticed some major changes in the world around us that we had to handle. Looking at net sales, it increased with 19% to 7.4 billion. We continued to increase our recurring revenues, which amounted to 70% of net sales. Adno Group became an even more global company with acquisition on Team D3. And USA is now our biggest geography compared to net sales. We started 2023 strong, but Q2 and Q3 was tougher. So looking at Q4, annual group ended year with growth, stable earnings, and cash flow. Net sales increased by 16%, of which minus 1% was organic. Currency adjusted organic growth was minus 2%. EBITDA amounted to $196 million. Cash flow from operating activities amounted to $228 million. The product lifecycle reported growth of 10%. Restructuring program initiated in Q2 has had an intended effect, and the EBITDA margin has improved. reverse adjusted organic growth of 3% and an improved EBITDA margin. The design management division reported growth of 24%, with currency adjusted organic growth amounting to minus 6%. The acquisition of TMD3 has had a positive impact on earnings. While demand in Europe was stable, demand from the construction and real estate market in the USA remained weak in the quarter. To respond to this week in the monster, productions have been implemented in the USA, which has had a positive effect. And with that, I would like to hand over to our CFO, Kristina Elström-Aktinsson.

Disclaimer

This conference call transcript was computer generated and almost certianly contains errors. This transcript is provided for information purposes only.EarningsCall, LLC makes no representation about the accuracy of the aforementioned transcript, and you are cautioned not to place undue reliance on the information provided by the transcript.

-

-

Investor presentation