Addnode Group AB (publ)

Now I will hand the conference over to the speakers. Please go ahead.

Hello, everyone, and welcome. I'm the CEO of Adam Group, Johan Andersson. And with me, I also have Kristina Elström-Mackintosh, the CFO of Adam Group. Together, we will introduce you to our interim report for Q2, and we will also end with a Q&A. For those of you who are new to Anigroup, I would like to inform you that our reporting currency is Swedish crowns. As you can see, the agenda for today. Before we start with the interim report, I would like to remind us of what Anno Group is all about. Our purpose is all about digitalization for a better society. Through innovation and continuous development in close collaboration with our customers, we create digital solutions for specific needs. The software and digital solution that we provide helps to design buildings, infrastructure and cities, and also the products that we all use every day, like cars and all the way to life science instruments. When things have been designed and built, it needs to be maintained with a lifecycle perspective. And the public sector has a responsibility for rules and regulations. Our digital solutions make all this possible. I would like to start by presenting the Q2 result on the higher altitude. All Admin Group had a good performance in the second quarter of 2025 and EBITDA improved compared with the year earlier period. From a group perspective, the market trend was stable in the Nordic countries, the UK and the US, while the German market remains weaker. EBITDA improved significantly to 238 million compared to 162 million last year, corresponding to an EBITDA margin of 16% compared to 8% last year. The increase in underlying earnings was partly strengthened by early renewals of three-year agreements in the design management division. EBITDA was positively impacted in an amount of 70 million as customers chose to renew their Autodesk agreements earlier. These agreements would otherwise have been renewed in the third quarter. A cost-saving program has offset the weaker German market in the PLM division, and the process management division strengthened its EBITDA margins. A stronger SEC had a negative FX impact of approximately 17 million on EBITDA in the quarter. If we adjust for the FX impact and early contract renewals, EBITDA would amount to 184 million, corresponding to an adjusted EBITDA growth of approximately 14%. Customers' early renewals of three-year agreements in Q2 are not expected to impact full-year earnings, meaning that all else being equal, EBITDA for the third quarter will be impacted with an amount corresponding to, say, 70 million. We have completed three new acquisitions, GNS in Norway and two asset deals in the US. All three acquisitions will be consolidated from July, meaning that they are not consolidated in Q2. GNS to the left provides a no-code platform for business critical solutions for customers within banking, insurance and public sector. It is mainly used to manage complex processes where documentation, regulatory compliance and internal governance are key requirements. The unit has a net sales of 765 million with a strong EBITDA margin. It will be consolidated as part of division design management. Symmetry and division design management have done two asset deals in the US that will strengthen our market position Thanks to our strong financial position, Anna Group can continue executing on its long-term value-creating acquisition strategy. We still have several active acquisition processes underway, and acquisitions are an important part of our growth strategy. We are operating our business in three divisions, design management, product lifecycle management, and process management. Looking at the three divisions and their performance during Q2 for net sales, gross profit, and EBITDA, at the pie chart to the left, you can see that design management was accounting for approximately 46% of net sales in the quarter, PLM 30%, and process 24%. In the middle chart, you can see the share of gross profit where the sign had 54%, PLM 20% and process management 26%. Looking at our EBITDA divided by divisions to the right, you can see that the sign accounts for 64%, PLM 12% and process management 24%. With that, I would like to go over the three different divisions and the outcome for Q2. Design management. The design management division's strong improvement in EBITDA was attributable to favorable sales in the US and therefore mentioned of three-year Autodesk agreements. EBITDA increased by 99% to 171 million and the EBITDA margin increased to 25.6% compared to 7.1% last year. EBITDA was positively impacted in the amount of 670 million as customers choose, for business reasons, to renew their Autodesk agreements early. These agreements would otherwise have been renewed in the third quarter of 2025. The other two companies in the divisions, SWG and Trivia, delivered a stable performance compared with the year earlier period. Reported net sales decreased by 45% to 669 million. Compared with the year-early period, the transition to Autodesk's new transaction model and change to the classification of third-party agreements also impacted the comparative figures. If the same comparison had instead been based on the previous Autodesk reseller model and before reclassification of third party agreements, currency adjusted organic growth would have been positive and amounted to approximately 53%. We can also see that the integration carries on in the division. Symmetry carried out its first acquisition in the US, Microdesk, in 2022, followed by the acquisition of Team D3 in 2023. Two companies are now merging to form Symmetry US, thereby becoming even more competitive in the US market. Division Product Lifecycle Management. The PLM division noticed a stable market trend in the Nordic countries, the UK and the US, while the German market remained challenging. Sales to the strategically important aviation and defense segment increased during the quarter. Before reclassification of third-party agreements, the division's current adjusted organic growth amounted to 1%. However, reported net sales were impacted by reclassification of third-party agreements. As of the fourth quarter of 2024, sales of certain third-party agreements have been reclassified in accordance with this agent model. If this reclassification had not been implemented, the current suggested growth would have been positive by approximately 2%. EBITDA decreased to 33 million and the EBITDA margin narrowed to 7.4%. As previously communicated, measures have been initiated in the first quarter to add organization and cost to current market conditions. These measures have progressed according to plan. The restructuring cost of approximately say 24 million that were charged earnings in the first quarter are deemed to generate yearly cost savings of approximately 45 million. Process management. The process management division delivered yet another strong quarter with growth and an improved EBITDA margin. The division's net sales increased by 5% and EBITDA by 10%. This marked the fourth consecutive quarter in which the division's EBITDA margin improved year on year. EBITDA was positively impacted by price adjustments, increased operational efficiency and contributions from acquired companies. EBITDA increased by 10% to 65 million and the EBITDA margin increased to 18.5%. The market for the division remained unchanged with stable demand for case management and geographic information systems for the public sector. And with that, I would like to hand over to our CFO, Christina McIntosh.

Thank you, Johan. Yes, I'm going to take you through the consolidated cash flow for the quarter. And starting out from cash flow from operating activities in the first quarter, it was 33 million SEK compared to 178 the previous year. And as you can see above, it was mainly impacted by the changes in working capital. And that is mainly related to the division design management. And the changes were mainly related to change in payment terms for out-of-desk three-year contracts. And we have already communicated that earlier and also highlighted that in last quarter. that the change in payment terms, which began in 2023, meant that the three year contracts are not paid annually during the contract term. And before 2023, they were paid upfront in advance for all the three years. And over time, the cash flow will align with the earnings much better. And also like to pay attention to this, the change in payment trends should not be confused with the changes of Autodesk transaction model. Going down and looking for cash flow from investment activities amounted to minus 62. And that is mainly related to our investment in proprietary products and also acquisitions made during the quarter. Going down, cash flow from financing activities, 148 million. That includes a dividend that was paid of 154 million SEK in May, and also new loan of 437 million that was drawn in Q2 for acquisitions, for the acquisitions that we made and completed after year quarter end, and also earn out payment after the period. And we also had a small proceeds for the shares in accordance with the incentive program of 5 million. And we also amortized loans in foreign currency of 139 million SEK. And then I would like to draw your attention to the consolidated financial position here. Notice that this is the operational balance sheet and not the balance sheet that we present in the report. And we continue to operate supported by a resilient balance sheet, which is important for us for our continued growth, both organically and through acquisitions. And the decrease in the balance sheet from the beginning of the year is primarily driven by the currency effects. And you can also see that our business model enable us to operate with a negative net working capital, and we continue to do so. It's minus 328 million SEK. And in the line item, provision taxes and other debts includes future earn-out payments, depending on the financial performance of the acquired companies. And as of 30th of June 2025, total earn-out and other liability sellers amount to 458 million SEK. And the majority is for the Microdesk and TMD3 acquisitions in previous years. Net debt amounted to 1.1 billion SEK. And we can also see going down the line that the return on capital increased to 90% from 15% in the previous years. And we also have a cash position of approximately 730 million SEK compared to 674 as of end of December 2024. And of the total available facilities and the revolving credit facilities of 1.6 billion, approximately 0.7 billion remains unutilized as of June 30, 2025. And over to you, Johan.