Profitability, financial position and cash flow
The return on equity at the end of the period was 31 percent (29), and return on capital employed was 20 percent (21). Return on working capital P/WC (EBITA in relation to working capital) amounted to 54 percent (53).

At the end of the period the equity ratio amounted to 34 percent (35). The implementation of IFRS 16 had a negative effect and increased the balance sheet total by SEK 527 million. Equity per share, excluding non-controlling interest, totalled SEK 39.60 (33.05). The Group's net debt at the end of the period amounted to SEK 2,389 million (1,808), excluding pension liabilities of SEK 373 million (252), including leasing liabilities from IFRS 16 totallingSEK 529 million. The net debt/equity ratio, calculated on the basis of net debt excluding provisions for pensionsbut including leasing liabilities according to IFRS 16, amounted to 0.9 (0.8).

Cash and cash equivalents consisting of cash and bank equivalents and approved but non-utilised credit facilities amounted to SEK 861 million (477) at 31 December 2019.

Cash flow from operating activities amounted to SEK 667 million (320) during the period. The implementation of IFRS 16 has increased cash flow from operating activities by SEK 112 million and decreased cash flow from financing activities by the corresponding amount, on account of the fact that the amortization portion of lease payments is recognized as payments in the financing activities. Company acquisitions and disposals including settlement of contingent consideration regarding acquisitions implemented in previous years amounted toSEK 310 million (555). Investments in noncurrent assets totalled SEK 78 million (49) and disposal of non-current assets amounted to SEK 4 million (10). Dividend from associated companies amounted to SEK 1 million (2). Repurchase of treasury shares amounted to SEK 42 million (38) and repurchase of call options amounted to SEK 23 million (11). Exercised and issued call options totalled SEK 31 million (27). Dividends paid to the shareholders of the Parent Company totalled SEK 336 million (269), corresponding to SEK 5.00 (4.00) per share. The dividend was paid out in the second quarter.

At the end of the period, the number of employees was 2,931, compared to 2,759 at the beginning of the financial year. During the period, completed acquisitions and disposals resulted in a net increase of the number of employees by 135. The average number of employees in the latest 12-month period was 2,849.

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

Class of shares Number of shares Number of votes Percentage of capital Percentage of votes
Class A shares, 10 votes per share 3,229,500 32,295,000 4.7% 33.2%
Class B shares, 1 vote per share 64,968,996 64,968,996 95.3% 66.8%
Total number of shares before repurchases 68,198,496 97,263,996 100.0% 100.0%
Repurchased class B shares -1,104,918 1.6% 1.1%
Total number of shares after repurchases 67,093,578

Addtech has four outstanding call option programmes for a total of 1,062,000 shares. Call options issued on repurchased shares entail a dilution effect of about 0.2 percent during the latest 12-month period. Addtech's own shareholdings fully meet the needs of the outstanding call option programmes.

Outstanding programme Number of options Corresponding number of shares Proportion of total shares Exercise price Expiration period
2019/2023 300,000 300,000 0.4% 321.80 5 Sep 2022 -2 Jun 2023
2018/2022 300,000 300,000 0.4% 232.90 6 Sep 2021 - 3 Jun 2022
2017/2021 300,000 300,000 0.4% 178.50 14 Sep 2020 - 4 Jun 2021
2016/2020 162,000 162,000 0.2% 159.00 16 Sep 2019 - 5 Jun 2020
Total 1,062,000 1,062,000

Acquisitions and disposals
During the period, 1 April to 30 September 2019 the following acquisitions were completed; Omni Ray AG, Thiim A/S and Promector Oy to become part of the Automation business area, Thurne Teknik AB, AB N.O. Rönne and BKC Products Ltd. to become part of the Industrial Process business area, Best Seating Systems Walter Tausch GmbH to become part of the Power Solutions business area and Profelec Oy to become part of the Energy business area.

During the third quarter, no company acquisitions took place.

The purchase price allocation calculations for the acquisitions completed during the period 1 April – 31 December 2018 have now been finalised. No significant adjustments have been made to the calculations. Acquisitions completed as of the 2018/2019 financial year are distributed among the Group’s business areas as follows:

Acquisitions (disposals) Closing Net sales,
Number of employees* Business Area
Synthecs Group, Netherlands** April, 2018 145 50 Automation
Xi Instrument AB, Sweden April, 2018 13 2 Energy
KRV AS, Norway April, 2018 55 27 Industrial Process
Scanwill Fluid Power ApS, & Willtech ApS, Denmark April, 2018 15 4 Components
Duelco A/S, Denmark July, 2018 150 30 Energy
Prisma Teknik AB and Prisma Light AB, Sweden July, 2018 70 27 Energy
Fibersystem AB, Sweden** July, 2018 140 12 Automation
TLS Energimätning AB, Sweden July, 2018 50 9 Industrial Process
Diamond Point International (Europe) Ltd, Great Britain** July, 2018 40 9 Automation
Power Technic ApS, Denmark July, 2018 50 6 Power Solutions
(Solar Supply Sweden AB, Sweden) (August, 2018) (80) (5) (Power Solutions)
Nordautomation Oy, Finland September, 2018 155 85 Industrial Process
Wood Recycling Sweden AB, Sweden October, 2018 7 2 Industrial Process
Nylund Industrial Electronics (assets and liabilities), Finland January, 2019 35 3 Components
Birepo A/S, Denmark January, 2019 35 10 Components
Omni Ray AG, Switzerland April, 2019 330 65 Automation
Thurne Teknik AB, Sweden April, 2019 100 19 Industrial Process
AB N.O. Rönne, Sweden April, 2019 8 4 Industrial Process
Best Seating Systems Walter Tausch GmbH, Austria May, 2019 23 5 Power Solutions
Thiim A/S, Denmark June, 2019 70 15 Automation
Profelec Oy, Finland July, 2019 6 2 Energy
BKC Products Ltd., Great Britain August, 2019 12 5 Industrial Process
Promector Oy, Finland August, 2019 24 20 Automation
Wireco-NB Oy, Finland February, 2020 23 6 Energy
* Refers to assessed condition at the time of acquisition and disposal, respectively, on a full-year basis.
**Previous to April 1, 2019, the company belonged to the Components business area.

If all acquisitions which have taken effect during the period had been completed on 1 April 2019, their impact would have been an estimated SEK 390 million on Group net sales, about SEK 10 million on operating profit and about SEK 7 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 period, the discounted value amounts to SEK 31 million. The contingent purchase considerations fall due for payment within three years and the outcome is subject to a maximum of SEK 43 million. 

Transaction costs for acquisitions that resulted in an ownership transfer during the period, amounted to SEK 3 million (6) and are reported under Selling expenses.

Revaluation of contingent consideration had a positive net effect of SEK 22 million (11) during the period. 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 period:

Carrying amount at acquisition date Adjustment to fair value Fair value
Intangible non-current assets 0 132 132
Other non-current assets 10 - 10
Inventories 68 - 68
Other current assets 127 - 127
Deferred tax liability/tax asset 0 -17 -17
Other liabilities -87 -52 -139
Acquired net assets 118 63 181
Goodwill 129
Non-controlling interests -3
Consideration 1) 307
Less: cash and cash equivalents in acquired businesses -31
Less: consideration not yet paid -40
Effect on the Group’s cash and cash equivalents 236
1) The consideration is stated excluding acquisition expenses.

Parent Company

Parent Company net sales amounted to SEK 47 million (45) and profit after financial items was SEK -41 million (-12). Net investments in non-current assets were SEK 0 million (0). The Parent Company's financial net debt was SEK 328 million (150) at the end of the period.