Market Drivers

GLOBALISATION AND TECHNOLOGICAL DEVELOPMENT

Addtech operates in the international technology trading market, where players buy, adapt and sell technical products and solutions. Our market is large and we have chosen to focus on carefully selected niches with a high technology and knowledge content. Addtech’s subsidiaries are key partners to industrial companies and to technology-intensive service operations in the private and public sectors in Northern Europe. The rapid development of technology makes it very important to constantly stay at the forefront of technological development. This is where we can make a difference for our manufacturers and customers.

THE NORTHERN EUROPEAN MARKET

Addtech is based in Nordic industry, but operates internationally. The emphasis of the business is in the Nordics, but the markets outside the Nordic countries have grown well and increased in significance. Besides having its own operations in 14 countries outside the Nordic region, Addtech also exports to a further 20 countries.

The subsidiaries find and represent market-leading manufacturers from all over the world. In addition to trading in standard products, specially tailored solutions and/or sub-systems, Addtech sells products under its own brands and runs some niche production operations. Many of Addtech’s products are incorporated into the end products of globally exporting customers. Addtech often continues to supply its parts to these customers when they relocate their manufacturing operations abroad.

DRIVING FORCES

The long-term growth and profitability of the technology trading market depend on the size and diversity of the industrial and service sectors. Northern Europe's relatively high costs have spurred the development of knowledge-intensive, automated and specialised industrial and service sectors. This has also contributed to differentiation of the value chain, increased trade and greater reliance on external partners for product development and component modifications as well as for maintenance and other aftermarket services. Addtech cooperates with manufacturers who, via their in-house product development, supply market-leading, high-quality products with an advanced technological content. Cooperation with our companies should be the most profitable way for suppliers to sell their products in the geographic markets where we operate.

Customers need a partner who helps them select the right supplier and technology from an increasingly complex supplier market. When we can provide a range of market-leading products, combined with our own technological and market knowledge alongside flexible customisation options, we become an attractive partner for customers. Our goal is to be a value-adding company, which means that we can always add value to our customers’ products and processes through our expertise, understanding and resources. In simple terms, you could say that we aim to add value to our customers in two ways: either by helping them to manufacture their products more efficiently, or by helping to make their products more competitive. Our range of products and services is aimed at both end users and OEM customers (Original Equipment Manufacturers, who integrate Addtech's products into their own products).

Growth and profitability

In the short term, growth and profitability are closely tied to the state of the economy in industry and the economic conditions prevailing in the Group's markets.

Addtech's focus on infrastructure, the public sector and narrow market niches reduces sensitivity to economic volatility. However, growth and profitability are highly dependent on the state of competition among our customers and their possibilities of performing well domestically and/or globally. Addtech therefore evaluates each of its markets on an ongoing basis to ensure that they offer the Group scope for reaching its financial targets.