Addnode as an investment
Addnode Group’s class B share is listed on Nasdaq Stockholm and included in the Large Cap segment. In the most recent five-year period (2019-2023), the share price has increased by 233 %, which can be set against the broad OMX Stockholm index, which has increased by 70 % in the same period. The OMX Stockholm Technology sector index, which Addnode Group’s share is part of, rose by 72 % in the same period.
1. Sustainable digital solutions
Addnode Group provides digital solutions for design, simulation, product data information and case management. Global trends like digitalisation, automation, urbanisation and sustainability are driving the demand for our solutions. The regulatory environment is also setting more stringent transparency and traceability standards. Customers are mainly in the construction and real estate sectors, the manufacturing and automotive industries, life science and within the public sector.
Digital twin of a living heart
2. Organic and acquisition-driven growth
Addnode Group’s strategy is to generate sustainable value growth by continuously acquiring new operations, then managing them with a focus on organic growth and profitability. We have executed over 70 acquisitions since the company started, which means we have accumulated substantial experience and refined our acquisition process over time. We have demonstrated that we can grow with good profitability. Yearly average net sales and EBITA growth over the last five years (2019–2023) were 21 and 18 per cent respectively. In 2023, the EBITA margin was 8.6 per cent.
Profitable growth, 2019-2023
3. Attractive business model
Addnode Group’s business model implies that a high share of the Group’s net sales are recurring revenue. Our services usually relate directly to the digital solutions we offer, which means that our customers frequently return to us for advice on their enhancement and integration with other systems. We have strong cash flow generation thanks to a high share of advance payments at the beginning of the year and a low investment requirement towards product development.
Distribution of revenue by revenue stream 2019-2023
4. Diversification spreads risk
Addnode Group’s operations and offering are diversified in several respects, reducing business risk. Our solutions are in demand by private and public sector customers, across a wide variety of industries and in many different geographical markets. The Group consists of around 20 companies and we have our own representation in 19 countries. We are not dependent on individual customers but have built many long-term customer relationships.
