Addnode Group Annual Report 2015 | Page 18

ADDNODE GROUP Business area: Product Lifecycle Management PRODUCT LIFECYCLE  MANAGEMENT The Product Lifecycle Management (PLM) business area is Europe’s leading supplier of software and systems for product data information. For 20 years the business area has provided system solutions that help companies compile data from product development, production and customers to optimise efficiency in various areas and processes. The business area had sales of SEK 513 m in 2015. The IT solutions provided by the business area are based primarily on Dassault Systèmes’ software and our proprietary system applications. OFFERING During the lifetime of a product, facility or service, a vast amount of information is created which, compiled in a single system, can reduce costs, shorten lead times and improve quality. Addnode Group’s offering spans the entire value chain from feasibility studies, implementation and application management to outsourcing of a complete PLM environment. A PLM system offers advantages across a company’s entire organisation, including: > Analysis and simulation of design and construction for product developers and designers > Resource management, cost control and governance for ­project managers > Vendor development and support in strategic purchasing for buyers > Providing quality engineers with tools for meeting ­environmental and safety requirements > Product information and analysis of outcomes for sales representatives, marketing staff and product planners > Export of product information for use in e-commerce portals, and of marketing and communication material for editors > Participation of partners in development and production processes. CUSTOMERS Our customers are in traditional industries such as telecom, manufacturing, automotive, construction and civil engineering, pharmaceuticals, medical technology and energy. A growing ­number of clothing, retail and service companies have been embracing the PLM concept in pace with rising demands for rapid innovation and customer-unique product development. Examples of customers include Autoliv, FACC, EDAG, Elekta, Elomatic, Ericsson, Ford, GE Healthcare, Jula, Metabo, Microsoft Mobile and Under Armour. COMPETITIVE SCENARIO Our competitive advantages are our ability to customise and provide service in several countries. Competitors consist of PLM software companies with their own sales organisations, such as Siemens and PTC, as well as of system integrators such as Tata and Accenture. PRODUCT LIFECYCLE MANAGEMENT IN BRIEF Subsidiaries: Infuseit and TechniaTranscat. Operations: Sweden, Finland, Norway, Germany, Austria, Slovakia, USA and India. Employees: In 2015 we completed the acquisition of Transcat PLM, and at year-end the business area had approximately 440 employees. MARKET The Nordic countries and Germany are our home market, but we are growing in the rest of Europe and in the USA. In 2015 we expanded into Germany through the acquisition of Transcat PLM. KEY FIGURES NET SALES BY MARKET 2015 49+27+879M NET SALES BY TYPE OF REVENUE 2015 49% Germany 27% Sweden 8% Finland 7% USA 9% Other SEK M 42+36+202M 42% Support and maintenance 36% Services 20% Software 2% Other Net sales EBITA EBITA margin, % Operating profit Operating margin, % Average number of employees 2015 2014 2013 512.6 52.7 10.3 263.6 41.4 15.7 248.7 26.2 10.5 46.3 9.0 38.2 14.5 23.3 9.4 281 163 161 18 01-32+88_Addnode_2015_EN.indd 18 2016-05-12 08:52:26