Future prospects and events after the reporting period

Future prospects

Business conditions have gradually become more stable over the financial year, although demand for production components from Nordic manufacturers remains cautious. We generally expect a more modest growth rate in the coming year as recovery is progressing slowly in a number of areas of the industry. The market remains mixed, with variations between our various niches and between different geographic markets and customer segments. In the hope of somewhat better market conditions we are now focussing on further improving growth in the Group. We need to raise the bar and be even better at enhancing what we are already good at.

During the year, the Group has conducted activities to adjust the cost and working capital situation in some of its operations, and we have also deployed additional resources in other companies. These measures have resulted in strong cash flow, which combined with a strong financial position offers good future opportunities. The Group stands well-equipped ahead of the opportunities that may arise with respect to both organic growth and acquisitions. The Group's goal is earnings growth of at least 15 percent per year over a business cycle, combined with profitability.

Events after the reporting period

Three companies have been acquired after the reporting period:

On 1 April GigaCom AB and GigaCom AS were acquired, becoming part of the Addtech Components business area. The GigaCom companies are technology trading companies supplying fibre-optic components and systems on the Swedish and Norwegian markets. The companies have six employees and sales of around SEK 30 million.

On 5 May Solar Supply Sweden AB was acquired for the Addtech Energy business area. Solar Supply is a technology trading company marketing and installing solar PV systems and related components on the Swedish market. Solar Supply has three employees and sales of about SEK 15 million.

On 17 June an agreement was signed to acquire 90 percent of shares outstanding in Hans Følsgaard A/S to become part of business areas Addtech Components and Addtech Energy. Hans Følsgaard is a technology trading company that delivers components and systems to OEM customers and larger end users within the manufacturing industry and also products within infrastracture and power transmissions to e.g. electric producers and wind power manufacturers. Hans Følsgaard has 65 employees and sales of about DKK 300 million. The closing is estimated to take place in the beginning of July 2014.

Proposed allocation of earnings

See "Financial Statements" for details.