INTERIM REPORT 1 APRIL – 30 JUNE 2019Niklas Stenberg, President and CEO, and Malin Enarson, CFO

FIRST QUARTER HIGHLIGHTS

Net Sales

SEK m 2,934, +22%

EBITA margin

11.6%Increase from 10.9%

A good start to the new financial year, also takingstrong comparisonfigures into account

Good organic growth, 12%

Clearer variation in circumstances betweencustomer segments

Five acquisitions

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COMPONENTS ENERGY INDUSTRIAL PROCESS POWER SOLUTIONSAUTOMATION

SEK m 1,946 / 10.0%Intelligent solutions, subsystems and components for industrial automation and infrastructure, for example: Robotics Control systems Sensors Industrial networks Communication networks

Mechanical Industry (30%), Medical Technology (10%), Forest & Process (10%), Electronics, Energy

79% Nordics

Components and subsystems within:Mechanics Electro-mechanics Hydraulics Electronics

Mechanical Industry (17%), Electronics (22%), Vehicles (18%), Energy, Medical Technology

77% Nordics

SEK m 1,960 / 11.2%Products for transmission and distribution of electricity.

Products within: Safety Installation Connection technology

Energy (45%), Building & Installation (25%), Mechanical Industry, Electronics, Forest & Process

77% Nordics

SEK m 2,357 / 10.4%MRO machine/

components, packing and seals Chain solutions Electrical engines,

switches, steering Process and analysis

equipment

Mechanical Industry (22%), Forest & Process (25%), Transportation (18%), Energy, Vehicles

71% Nordics

SEK m 2,305 / 9.5% Battery solutions Power Supply HMI & ergonomy

products

Vehicles (32%), electronics (14%), Energy (12%), Building & Installation, telecom

57% Nordics

SEK m 1,597 / 14.0%

Pro forma from April 1, 2019

BUSINESS AREAS IN BRIEF AS PER MARCH 31, 2019

QUARTER 1: NET SALES

NET SALES INCREASED TO SEK m 2,934 (2,395), 22%

Good demand with favourable business climate in most customer segments and geographies

Organic growth of 12 percent, and acquiredgrowth of 11 percent

Good positions in segments with continuously very good growth, for example the marine segment that accounts for just over half of the organic growth

The strong tailwind has abated in some areas

Good market positions in Norway and Finland, stable sales in Sweden and Denmark, and continued good development in operations outside the Nordic region

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7%

ORGANIC GROWTH

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5%

11%

QUARTER 1: EBITA DEVELOPMENT

EBITA INCREASED TO SEK m 341 (260), 31% EBITA margin amounted to 11.6% (10.9).

Improvement was driven mainly by the goodorganic growth

Operating profit increased by 32% toSEK m 292 (221), and operating margin was 10.0% (9.2)

All business areas surpassed 10% EBITA margin

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Acquisitions (divestments) Business Area Access Net Sales, SEK m* Number ofemployees*

Omni Ray AG Automation April, 2019 330 65

Thurne Teknik AB Industrial Process April, 2019 100 19

AB N.O. Rönne Industrial Process April, 2019 8 4

Best Seating Systems Walter TauschGmbH Power Solutions May, 2019 23 5

Thiim A/S Automation June, 2019 70 15

Profelec Oy Energy July, 2019 6 2

ACQUISITIONS

FIVE ACQUISITIONS DURING FIRST QUARTER

SEK M 531 total annual net sales

108new employees

1additional acquisitionafter end of quarter

*Refers to assessed condition at the time of acquisition and fisposal, respectively, on a full-year basis7

AUTOMATION

AUTOMATION

FIBER-OPTIC COMMUNICATION

INDUSTRIAL IT & SENSORS

MOTION & DRIVES

Quarter 1:

Net sales increased by 25% to SEK m 591 (472)

EBITA increased by 23% to SEK m 60 (49)

The Automation business area experienced a declining growth rate in underlying demand

Several acquisitions have contributed to volumes, while margins were affected somewhat negatively

For the business area’s largest segments, mechanical industry and medical technology, involving deliveries of production components and automation solutions, the market situation remained favourable, although demand evened out at a high level

The data and telecommunication segment, with demand for fibre-optic components for communication networks in particular, was favourable

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3 months ending 12 months ending

30 Jun 19 30 Jun 18 change 30 Jun 19 31 Mar 19

Net Sales, SEK m 591 472 25% 2,065 1,946

EBITA, SEK m 60 49 23% 205 194

EBITA-margin, % 10.2 10.3 – 9.9 10.0

COMPONENTSQuarter 1:

Net sales increased by 6% to SEK m 504 (474)

EBITA amounted to SEK m 54 (58)

The market for production components remained at a stable level despite strong comparative figures from the preceding year

A reduction in the issue of long delivery times was reflected in somewhat lower demand in the first quarter, particularly in Sweden and Denmark

In Norway and Finland, the market situation remained favourable

Demand in mechanical industry and vehicles was stable, with a somewhat lower rate of growth than previously

The business situation was good in the electronics industry, as well as in energy (predominantly wind power), although this has been a period of fierce competition and pressured margins

COMPONENTS

NORWAY

FINLAND

DENMARK

SWEDEN

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3 months ending 12 months ending

30 Jun 19 30 Jun 18 change 30 Jun 19 31 Mar 19

Net Sales, SEK m 504 474 6% 1,990 1,960

EBITA, SEK m 54 58 -7% 215 220

EBITA-margin, % 10.7 12.3 – 10.8 11.2

ENERGYQuarter 1:

Net sales increased by 16% to SEK m 619 (535)

EBITA increased by 20% to SEK m 67 (56)

In the business area’s most important market segments, the business situation remained positive over the quarter

In the Nordic countries, demand for infrastructure products for national and regional grids remained high

Efforts to achieve a clearer customer focus and to enhance efficiency are continuing.

The market situation for niche products in electricity distribution has been stable, although with somewhat slower growth

Cabling products for the manufacturing industry, as well as products for construction and installation, especially in public construction and industrial properties, experienced favourable demand

ENERGY

ENERGY SUPPLY

ENERGY PRODUCTS

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3 months ending 12 months ending

30 Jun 19 30 Jun 18 change 30 Jun 19 31 Mar 19

Net Sales, SEK m 619 535 16% 2,441 2,357

EBITA, SEK m 67 56 20% 255 244

EBITA-margin, % 10.9 10.4 – 10.5 10.4

INDUSTRIAL PROCESSQuarter 1:

Net sales increased by 62% to SEK m 807 (498)

EBITA increased by 107% to SEK m 103 (50)

The business situation remained exceptionally strong in the marine segment with very strong demand for our products and services to environmental improvement solutions

Good leverage on organic growth had a positive impact on margins

The market situation in the manufacturing industry was favourable and there was good demand for products in the forest and process industry in all geographical markets INDUSTRIAL

PROCESS

PROCESS TECHNOLOGY

INDUSTRIAL SOLUTIONS

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3 months ending 12 months ending

30 Jun 19 30 Jun 18 change 30 Jun 19 31 Mar 19

Net Sales, SEK m 807 498 62% 2,614 2,305

EBITA, SEK m 103 50 107% 272 219

EBITA-margin, % 12.8 10.0 – 10.4 9.5

POWER SOLUTIONSQuarter 1:

Net sales amounted to SEK m 417 (419)

EBITA increased by 14% to SEK m 65 (57)

The business situation varied between different customer and product segments, although demand was generally stable compared with the first quarter last year

The companies in the business area’s largest customer segment, special vehicles, experienced a slightly declining growth rate, at a very high level, in demand for control and ergonomic products

The market situation was favourable for customisedbatteries and wind power, and demand for products in power supply was stable

POWER SOLUTIONS

ENERGY STORAGE

CUSTOMISED SOLUTIONS

POWER SUPPLY SYSTEMS

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3 months ending 12 months ending

30 Jun 19 30 Jun 18 change 30 Jun 19 31 Mar 19

Net Sales, SEK m 417 419 0% 1,595 1,597

EBITA, SEK m 65 57 14% 231 223

EBITA-margin, % 15.7 13.7 – 14.5 14.0

FINANCIAL POSITION

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INCOME STATEMENT, CONDENSED

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3 months ending 12 months ending

(SEK m) 30 Jun 19 30 Jun 18 30 Jun 19 31 Mar 19

Net Sales 2,934 2,395 10,687 10,148

Cost of sales & op. expenses -2,659 -2,178 -9,749 -9,267

Other operating items 17 4 42 29

Operating profit 292 221 980 910

Financial income & expenses -6 -16 -33 -45

Profit after financial items 286 205 947 865

Income tax expense -60 -43 -210 -193

Net profit 226 162 737 672

Earnings per share, SEK 3.35 2.35 10.85 9.85

EBIT margin, % 10.0 9.2 9.2 9.0

EBITA margin, % 11.6 10.9 10.9 10.7

CASH FLOW STATEMENT, CONDENSED

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3 months ending 12 months ending

(SEK m) 30 Jun 19 30 Jun 18 30 Jun 19 31 Mar 19

Profit after financial items 286 205 947 865

Adj. for non cash items 74 69 199 229

Income tax paid -45 -27 -248 -230

Changes in working capital -62 -195 -207 -340

Cash flow from operating activities 253 52 691 524

Net investment in non-current assets -31 -10 -101 -80

Acquisitions and disposals -249 -140 -754 -645

Dividend paid - - -269 -269

Repurchase of own shares/options 6 7 -17 -16

Other financing activities -40 112 461 579

Period’s cash flow -61 21 11 93

BALANCE SHEET, CONDENSED

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(SEK m) 30 Jun 19 30 Jun 19* 30 Jun 18 31 Mar 19

Goodwill 1,896 1,896 1,540 1,767

Other intangible non-current assets 1,272 1,272 1,052 1,186

Property, plant and equipment 816 286 210 270

Non-current financial assets 57 57 33 45

Inventories 1,580 1,580 1,214 1,417

Current receivables 2,058 2,058 1,713 2,065

Cash and cash equivalents 233 233 223 295

Total assets 7,912 7,382 5,985 7,045

Total equity 2,782 2,783 2,349 2,520

Interest-bearing provisions & liabilities 2,828 2,297 1,698 2,256

Non-interest-bearing prov. & liabilities 2,302 2,302 1,938 2,269

Total equity & liabilities 7,912 7,382 5,985 7,045

*The figures in the balance sheet exclude the effect of IFRS 16 in order to provide a fair picture in relation to the comparative period

KEY FINANCIAL INDICATORS

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(SEK m) 30 Jun 19* 30 Jun 19** 31 Mar 19 30 Mar 18

Total equity (SEKm) 2,782 2,783 2,520 2,349

Equity per share, SEK 40.60 40.60 36.80 34.25

Equity ratio, % 35 38 36 39

Return on working capital (P/WC), % 54 54 53 53

Return on equity, % 31 31 29 27

Return on capital employed, % 21 22 21 22

Financial net debt (SEKm) 2,595 2,064 1,960 1,475

- of which pension liability 313 313 260 229

- of which other liabilites 2,282 1,751 1,700 1,246

Financial net debt / EBITDA 2.1 1.7 1.7 1.6

Net debt / equity ratio, times 0.8 0.6 0.7 0.5

Interest coverage ratio, times 23 23 22 23

Average number of employees 2,697 2,697 2,590 2,332

Number of employees at end of period 2,896 2,896 2,759 2,449

**Performance based figures for rolling 12 months as well as the figures in the balance sheet exclude the effect of IFRS 16 in order to provide a fair picture in relation to the comparative period

*Performance based figures for rolling 12 months exclude the effect of IFRS 16 in order to provide a fair picture in relation to the comparative period

VALUE-ADDING BUSINESS MODEL

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Addtech is a (technologyand niche market) network

where people and companies grow

NETWORK FOR GROWTH

Passion for people, technology and entrepreneurship

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