ADDNODE GROUP
Risks
A STRATEGY AND BUSINESS
MODEL THAT OFFER GOOD
RISK DIVERSIFICATION
All business activities involve risk-taking. Systematic and structured risk
management is a prerequisite for long-term value creation. Addnode Group’s
strategy and business model, combined with conscious risk management,
enable the Group to focus on growth and profitability.
CONTINUOUS RISK MANAGEMENT
SENSITIVITY ANALYSIS
Risk is managed at various levels within Addnode Group. With
input from the President and Group Management, the Board
of Directors analyses the risks and opportunities that must be
managed by the Group. An evaluation of risk management
is performed at least once a year. The President and Group
Management are responsible for adopting policies and rules,
and for ensuring that systems are in place to monitor risks in the
business. Group Management is responsible for the continuing
risk management activities in each area of responsibility. Business
area and subsidiary presidents are responsible for managing their
respective opportunities and risks, for ensuring that routines are
in place in accordance with the Group’s policies and rules, and for
monitoring compliance with these policies and rules.
The following table shows impact on earnings of changes of
various factors.
Impact
Changes, %
Impact on
earnings*, SEK
Net sales
+/– 1
0.40 (0.37)
Gross margin
+/– 1
0.63 (0.54)
Payroll expenses
+/– 1
0.26 (0.24)
Other operating expenses
+/– 1
0.11 (0.09)
*All else being equal, profit before tax per share
for the financial year 2015 (2014).
RISK ANALYSIS OVERVIEW
5
SANNOLIKHET
LIKELIHOOD
BUSINESS
RISKS
VERKSAMHETSRISKER
Business cycle
andomvärldsrisker
external risks.
A Konjunkturoch
B Produkter
Products, technology
and partners.
B
och teknologi
Probable
4
C Konkurrens
Competition.
C
D
D Customer structure.
A
Likely
Kundstruktur
3
C
Possible
2
H
I E
Not likely
E Revenue structure.
E Intäktsstruktur
F Organisation, competence
F Organisation,
succession andkompetens
managing growth.
B
försörjning och växtvärk
FINANCIAL RISKS
FINANSIELLA RISKER
G
G
H
H
I
I
J
J
D
C F
1
J G
Improbable
PÅVERKAN
IMPACT
1
Insignificant
2
Small
3
Medium
4
5
Very
large
Large
Credit risk.
Kreditrisk
Exchange rate risk.
Valutakursrisk
Interest rate risk.
Ränterisk
Liquidity risk.
Likviditetsrisk
CHANGES SINCE 2014
C
In
2015 Germany became our secondlargest geographical market through
the acquisition of Transcat PLM. This has
given us access to a considerably larger
market and potentially entails a higher
level of competition.
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