Parent Company balance sheet
Note 14
Intangible non-current assets
| 2019/2020 | ||||||||
| Intangible assets acquired | Intangible assets developed in the Group | |||||||
| Group | Goodwill | Supplier relationships, customer relationships and technology | Trademarks | Capitalised R&D expenses | Leases (rental) and similar rights | Software | Software | Total |
| Accumulated cost | ||||||||
| Opening balance | 1,767 | 1,970 | 22 | 41 | 0 | 83 | 4 | 3,887 |
| Acquisition of companies | 211 | 216 | 0 | 0 | – | 1 | – | 428 |
| Investments | – | 0 | 0 | 9 | 1 | 10 | – | 20 |
| Disposals and retirement of assets | – | – | – | – | – | – | – | – |
| Reclassifications | – | – | – | 1 | – | – | – | 1 |
| Translation effect for the year | 19 | 18 | – | 1 | 0 | 1 | – | 39 |
| Closing balance | 1,997 | 2,204 | 22 | 52 | 1 | 95 | 4 | 4,375 |
| Accumulated amortisation | ||||||||
| Opening balance | – | -826 | 0 | -32 | 0 | -72 | -4 | -934 |
| Acquisition of companies | – | – | – | – | – | -1 | – | -1 |
| Amortisation | – | -193 | 0 | -5 | 0 | -5 | – | -203 |
| Disposals and retirement of assets | – | – | – | – | – | – | – | – |
| Translation effect for the year | – | 4 | – | 0 | 0 | -1 | – | 3 |
| Closing balance | – | -1,015 | 0 | -37 | 0 | -79 | -4 | -1,135 |
| Carrying amount at year-end | 1,997 | 1,189 | 22 | 15 | 1 | 16 | 0 | 3,240 |
| Carrying amount at start of year | 1,767 | 1,144 | 22 | 9 | 0 | 11 | 0 | 2,953 |
| 2018/2019 | ||||||||
| Intangible assets acquired | Intangible assets developed in the Group | |||||||
| Group | Goodwill | Supplier relationships, customer relationships and technology | Trademarks | Capitalised R&D expenses | Leases (rental) and similar rights | Software | Software | Total |
| Accumulated cost | ||||||||
| Opening balance | 1,456 | 1,633 | 22 | 19 | 0 | 70 | 4 | 3,204 |
| Acquisition of companies | 305 | 311 | – | 21 | – | 7 | – | 644 |
| Investments | – | 18 | – | 1 | – | 4 | – | 23 |
| Disposals and retirement of assets | -6 | -7 | – | – | – | 0 | – | -13 |
| Reclassifications | – | – | – | – | – | 2 | – | 2 |
| Translation effect for the year | 12 | 15 | – | 0 | 0 | 0 | – | 27 |
| Closing balance | 1,767 | 1,970 | 22 | 41 | 0 | 83 | 4 | 3,887 |
| Accumulated amortisation | ||||||||
| Opening balance | – | -656 | 0 | -16 | 0 | -65 | -4 | -741 |
| Acquisition of companies | – | – | – | -14 | – | -4 | – | -18 |
| Amortisation | – | -168 | – | -2 | 0 | -3 | – | -173 |
| Disposals and retirement of assets | – | 3 | – | – | – | 0 | – | 3 |
| Translation effect for the year | – | -5 | – | 0 | 0 | 0 | – | -5 |
| Closing balance | – | -826 | 0 | -32 | 0 | -72 | -4 | -934 |
| Carrying amount at year-end | 1,767 | 1,144 | 22 | 9 | 0 | 11 | 0 | 2,953 |
| Carrying amount at start of year | 1,456 | |||||||
| 2020-03-31 | 2019-03-31 | |||
| Parent Company | Software | Total | Software | Total |
| Accumulated cost | ||||
| Opening balance | 2.8 | 2.8 | 2.8 | 2.8 |
| Investments | 0.9 | 0.9 | – | – |
| Closing balance | 3.7 | 3.7 | 2.8 | 2.8 |
| Accumulated amortisation | ||||
| Opening balance | -2.8 | -2.8 | -2.8 | -2.8 |
| Amortisation | -0.2 | -0.2 | – | – |
| Closing balance | -3.0 | -3.0 | -2.8 | -2.8 |
| Carrying amount at year-end | 0.7 | 0.7 | 0.0 | 0.0 |
| Carrying amount at start of year | 0.0 | 0.0 | 0.0 | 0.0 |
| Group | Koncernen | |||
| Goodwill distributed by business area | 2020-03-31 | 2019-03-31 | ||
| Automation | 531 | 450 | ||
| Components | 337 | 331 | ||
| Energy | 478 | 472 | ||
| Industrial Process | 335 | 235 | ||
| Power Solutions | 316 | 279 | ||
| Total | 1,997 | 1,767 | ||
TESTING OF GOODWILL
The Group’s recognised goodwill amounts to SEK 1,997 million (1,767), allocated as above to the units where impairment testing is performed. Goodwill is not monitored internally at a level lower than the business areas, and impairment testing is therefore performed at that level. The business areas coincide with the Group’s operating segments. Impairment testing took place most recently in March 2020.
The recoverable amount was based on value in use, calculated from a current estimate of cash flows over the year ahead. Forecast earnings and investments in working capital and non-current assets for the next financial year, 2020/2021, are based on previous outcomes and experiences. The forecast is produced on the basis of a relatively detailed budgeting process for the various parts of Group. The major components of the cash flow are sales, the various operating costs and investments in working capital and non-current assets.
The sales forecast is based on judgements taking into account factors such as order bookings, the general economy and the market situation. The forecast for operating costs is based on current pay agreements and previous years’ levels of gross margins and overheads, adapted to expectations for the year ahead taking into account factors as referred to for the sales forecast. Anticipated investments in working capital and non-current assets are linked to the growth in sales.
Since the operations are deemed to be in a phase that is representative of the long-term perspective, the cash flow from the first forecast year is extrapolated by a long-term growth rate of 2 percent (2) per year for all business areas. Cash flows were discounted applying a weighted cost of capital corresponding to roughly 11 percent (10) before tax. The key assumptions that have the greatest effect on the recoverable amount are gross margin, discount rate and long-term growth rate, where gross margin is most important. Neither a 1-percent increase in the discount rate, a 1-percentage point decrease in long-term growth, nor a 1-percent decrease in the margin shows a need for impairment. These calculations show that value in use significantly exceeds the carrying amount. Consequently, impairment testing indicated no impairment. The margin for impairment is considerable for all business areas and it is not judged that any possible changes in important assumptions that may reasonably expected to lead to impairment.
OTHER IMPAIRMENT TESTING
Each year, trademarks are tested for impairment, applying the same policies as for goodwill. No events or changed circumstances have been identified motivating impairment testing of other intangible assets currently being amortised.
Note 15
Property, plant and equipment
| 2020-03-31 | ||||||
| Group | Buildings and land | Leasehold improvements | Machinery | Equipment | Construction in progress | Total |
| Accumulated cost | ||||||
| Opening balance | 181 | 37 | 332 | 378 | 7 | 935 |
| Acquisition of companies | - | 2 | 3 | 34 | - | 39 |
| Investments | 6 | 2 | 21 | 41 | 15 | 85 |
| Disposals and retirement of assets | 0 | 0 | -3 | -7 | - | -10 |
| Reclassifications | 4 | 1 | 4 | -1 | -10 | -2 |
| Translation effect for the year | 6 | 1 | 8 | 6 | 1 | 22 |
| Closing balance | 197 | 43 | 365 | 451 | 13 | 1,069 |
| Accumulated depreciation and impairment losses | ||||||
| Opening balance | -85 | -26 | -247 | -306 | -1 | -665 |
| Acquisition of companies | - | -1 | -2 | -26 | – | -29 |
| Depreciation | -7 | -3 | -17 | -31 | – | -58 |
| Disposals and retirement of assets | 0 | 0 | 2 | 4 | – | 6 |
| Reclassifications | 0 | 0 | 0 | 0 | 0 | 0 |
| Translation effect for the year | -3 | -1 | -6 | -3 | 0 | -13 |
| Closing balance | -95 | -31 | -270 | -362 | -1 | -759 |
| Carrying amount at year-end | 102 | 12 | 95 | 89 | 12 | 310 |
| Carrying amount at start of year | 96 | 11 | 85 | 72 | 6 | 270 |
| 2019-03-31 | ||||||
| Group | Buildings and land | Leasehold improvements | Machinery | Equipment | Construction in progress | Total |
| Accumulated cost | ||||||
| Opening balance | 143 | 32 | 283 | 332 | 2 | 792 |
| Acquisition of companies | 23 | 4 | 29 | 27 | 4 | 87 |
| Investments | 12 | 2 | 18 | 33 | 5 | 70 |
| Disposals and retirement of assets | – | -2 | -1 | -16 | 0 | -19 |
| Reclassifications | 3 | – | 1 | -1 | -5 | -2 |
| Translation effect for the year | 0 | 1 | 2 | 3 | 1 | 7 |
| Closing balance | 181 | 37 | 332 | 378 | 7 | 935 |
| Accumulated depreciation and impairment losses | ||||||
| Opening balance | -75 | -24 | -216 | -269 | -1 | -585 |
| Acquisition of companies | -4 | -1 | -14 | -20 | – | -39 |
| Depreciation | -6 | -3 | -17 | -27 | – | -53 |
| Disposals and retirement of assets | – | 2 | 2 | 12 | – | 16 |
| Reclassifications | – | – | – | – | – | – |
| Translation effect for the year | 0 | 0 | -2 | -2 | 0 | -4 |
| Closing balance | -85 | -26 | -247 | -306 | -1 | -665 |
| Carrying amount at year-end | 96 | 11 | 85 | 72 | 6 | 270 |
| Carrying amount at start of year | 68 | |||||
| 2020-03-31 | 2019-03-31 | |||||
| Parent Company | Leasehold improvements | Equipment | Total | Leasehold improvments | Equipment | Total |
| Accumulated cost | ||||||
| Opening balance | 4 | 3 | 7 | 4 | 3 | 7 |
| Investments | – | – | - | – | – | - |
| Disposals and retirement of assets | – | – | – | – | – | – |
| Closing balance | 4 | 3 | 7 | 4 | 3 | 7 |
| Accumulated depreciation according to plan | ||||||
| Opening balance | -4 | -2 | -6 | -3 | -2 | -5 |
| Depreciation | 0 | -1 | -1 | -1 | 0 | -1 |
| Disposals and retirement of assets | – | – | – | – | – | – |
| Closing balance | -4 | -3 | -7 | -4 | -2 | -6 |
| Carrying amount at year-end | 0 | 0 | 0 | 0 | 1 | 1 |
| Carrying amount at start of year | 0 | 1 | 1 | 1 | 1 | 2 |
Note 17
Financial assets and liabilities
| Parent Company | ||||||
| Receivables from Group companies | 2020-03-31 | 2019-03-31 | ||||
| Opening balance | 1,984 | 1,692 | ||||
| Increase during the year | 40 | 584 | ||||
| Decrease during the year | -220 | -292 | ||||
| Carrying amount at year-end | 1,804 | 1,984 | ||||
| | ||||||
| Parent Company | ||||||
| Specification of interests in Group companies | Country | Number of shares | Quotient value | Holding % |
Carrying amount 2020-03-31 |
Carrying amount 2019-03-31 |
| Addtech Nordic AB, 556236-3076, Stockholm | Sweden | 1,750 | 100 | 100 | 1,004 | 1,004 |
| Total | 1,004 | 1,004 | ||||
| A complete statutory specification is included as an annex to the annual accounts submitted to the Swedish Companies Registration Office. The specification can be obtained from Addtech AB. | ||||||
| Parent Company | ||
| Interests in Group companies | 2020-03-31 | 2019-03-31 |
| Accumulated cost | ||
| Opening balance | 1,119 | 1,119 |
| Closing balance | 1,119 | 1,119 |
| Accumulated impairment losses | ||
| Opening balance | -115 | -115 |
| Closing balance | -115 | -115 |
| Carrying amount at year-end | 1,004 | 1,004 |
| Carrying amount at start of year | 1,004 | 1,004 |
| Carrying amounts and financial instruments are recognised in the balance sheet according to the following tables. | ||||
| 2020-03-31 | ||||
| Group | Measured at fair value through profit | Unlisted equity instruments reported at cost | Accounts receivable and loan receivables | Total carrying amount |
| Other financial assets | – | 4 | – | 4 |
| Non-current receivables | – | – | 19 | 19 |
| Accounts receivable | – | – | 2,003 | 2,003 |
| Other receivables | 11 | - | 117 | 128 |
| Cash and cash equivalents | – | – | 363 | 363 |
| Non-current interest-bearing liabilities | 46 | – | 2,108 | 2,154 |
| Current interest-bearing liabilities | 105 | – | 357 | 462 |
| Accounts payable | – | – | 1,028 | 1,028 |
| Other liabilities | 5 | - | – | 5 |
| 2019-03-31 | ||||
| Group | Measured at fair value through profit | Unlisted equity instruments reported at cost | Accounts receivable and loan receivables | Total carrying amount |
| Other financial assets | – | 4 | – | 4 |
| Non-current receivables | – | – | 12 | 12 |
| Accounts receivable | – | – | 1,887 | 1,887 |
| Other receivables | 3 | – | 77 | 80 |
| Cash and cash equivalents | – | – | 295 | 295 |
| Non-current interest-bearing liabilities | 75 | – | 644 | 719 |
| Current interest-bearing liabilities | 123 | – | 1,154 | 1,277 |
| Accounts payable | – | – | 955 | 955 |
| Other liabilities | 2 | – | – | 2 |
| Current and non-current loans are carried at amortised cost. The difference between carrying amount and fair value is marginal for these items. The same applies to other financial instrument for larger amounts, since maturity is short. | ||||
| Financial instruments, SEKm | 31 March 2020 | 31 March 2019 | ||||
| Verkligt värde på finansiella instrument | Carrying amount | Level 2 | Level 3 | Carrying amount | Level 2 | Level 3 |
| Derivatives -fair value, hedge instruments | 6 | 6 | – | 2 | 2 | – |
| Derivatives - fair value through profit | 5 | 5 | – | 1 | 1 | – |
| Total financial assets at fair value per level | 11 | 11 | – | 3 | 3 | – |
| Derivatives -fair value, hedge instruments | 1 | 1 | – | 0 | 0 | – |
| Derivatives - fair value through profit | 4 | 4 | – | 2 | 2 | – |
| Contingent considerations- fair value though profit | 151 | – | 151 | 198 | – | 198 |
| Total financial liabilities at fair value per level | 156 | 5 | 151 | 200 | 2 | 198 |
|
Fair value and carrying amount are recognised in the balance sheet according to the table above. Level 1 refers to when fair value is determined based on quoted prices in an active market. At the end of the reporting period, the Group had no items in this category. Level 2 refers to when fair value is determined based on either directly or indirectly observable market data not included in level 1. This is done for foreign currency accounts and embedded derivatives. Level 3 is not observable in the market. A cash flow-based valuation is carried out for the Group's contingent considerations. For the Group’s other financial assets and liabilities, fair value is estimated to be equal to the carrying amount. | ||||||
| Contingent considerations | 2019/2020 | 2018/2019 |
| Carrying amount, opening balance | 198 | 215 |
| Acquisitions during the year | 63 | 84 |
| Reversed through profit or loss | -52 | -8 |
| Consideration paid | -65 | -105 |
| Interest expenses | 3 | 10 |
| Exchange differences | 4 | 2 |
| Carrying amount, closing balance | 151 | 198 |
| Impact of financial instruments on net earnings | 2019/2020 | 2018/2019 |
| Assets and liabilities measured at fair value through profit or loss | -5 | -9 |
| Derivatives used in hedge accounting | 0 | 0 |
| Accounts receivable and loan receivables | -35 | -20 |
| Total | -40 | -29 |
Note 19
Prepaid expenses and accrued income
| Group | Parent company | |||
| 2020-03-31 | 2019-03-31 | 2020-03-31 | 2019-03-31 | |
| Rent | 19 | 21 | 2 | 2 |
| Insurance premiums | 9 | 8 | 3 | 3 |
| Pension costs | 3 | 3 | 1 | 1 |
| Lease payments | 4 | 4 | 0 | 0 |
| Other prepaid expenses | 45 | 41 | 5 | 5 |
| Other accrued income | 48 | 19 | 0 | 0 |
| Total | 128 | 96 | 11 | 11 |
Note 20
Equity
GROUP
Other contributed capital
Refers to equity contributed by shareholders.
| Group | ||
| Reserves 1) | 2019/2020 | 2018/2019 |
| Foreign currency translation reserve | ||
| Opening translation reserve | 123 | 87 |
| Translation effect for the year | 56 | 36 |
| Closing translation reserve | 179 | 123 |
| Hedging reserve 2) | 0 | 0 |
| Opening hedging reserve | 9 | 0 |
| Revaluations recognised via other comprehensive income | -7 | 0 |
| Recognised in profit or loss upon disposal (other operating income/expenses) | -2 | 0 |
| Taxes attributable to the year’s revaluations | 1 | 0 |
| Taxes attributable to disposals | 1 | 0 |
| Total reserves | 180 | 123 |
| 1) Refers to reserves attributable to equity holders of the Parent Company. | ||
| 2) Relates to cash flow hedges, consisting of currency clauses in customer contacts. | ||
TRANSLATION RESERVE
The translation reserve includes all exchange differences arising on the translation of the financial reports of foreign operations prepared in a currency other than the Group’s presentation currency for financial reports. The Parent Company and Group present their financial reports in Swedish kronor (SEK).
HEDGING RESERVE
The hedging reserve includes the effective portion of the accumulated net change in fair value for a cash-flow hedging instrument attributable to hedge transactions that have not yet occurred.
RETAINED EARNINGS, INCLUDING PROFIT FOR THE YEAR
Retained earnings including profit for the year include earnings in the Parent Company and its subsidiaries. Prior provisions to the legal reserve are included in this equity item.
REPURCHASED SHARES
Repurchased shares includes the cost of treasury shares held by the Parent Company. At the end of the reporting period, the Group’s holding of treasury shares was 1,049,918 (1,141,387).
DIVIDEND
After the reporting period, the Board of Directors proposed a dividend of SEK 4.00 per share. The dividend is subject to approval by the Annual General Meeting on 28 August 2020.
| Proposed allocation of earnings 2019/2020 | |
| Retained earnings | SEK 228 million |
| Profit for the year | SEK 209 million |
| TOTAL | SEK 437 million |
| The Board of Directors and the CEO propose that the funds available be allocated as follows: | |
| That a dividend of SEK 4.00 per share be paid to shareholders* | SEK 269 million |
| To be carried forward | SEK 168 million |
| TOTAL | SEK 437 million |
PARENT COMPANY
RESTRICTED RESERVES
The purpose of the statutory reserve is to save a portion of net profit that will not be used to cover a loss carried forward.
STATUTORY RESERVE
The purpose of the statutory reserve is to save a portion of net profit that will not be used to cover a loss carried forward.
RETAINED EARNINGS
Retained earnings comprises the previous year’s unrestricted equity, less any dividend paid. Together with profit for the year and any fair value reserve, retained earnings constitute the sum of unrestricted equity, that is, the amount available to be paid as dividends to shareholders.
NUMBER OF SHARES
The number of shares at 31 March 2020 consisted of 3,229,500 Class A shares, entitling the holders to 10 votes per share, and 64,968,996 Class B shares, entitling the holders to one vote per share. The quotient value of the share is SEK 0.75.The Company has repurchased 1,049,918 Class B shares within the framework of the Company’s ongoing repurchasing programme. After subtracting repurchased shares, the number of Class B shares is 63,919,078.
| Number of shares outstanding | Class A shares | Class B shares | All share classes |
| At start of year | 3,229,500 | 63,827,609 | 67,057,109 |
| Exercised call options | – | 241,469 | 241,469 |
| Repurchase of treasury shares | – | -150,000 | -150,000 |
| Conversion of Class A shares to Class B shares | – | – | – |
| At year-end | 3,229,500 | 63,919,078 | 67,148,578 |
| 2019-03-31 | |||
| Number of shares outstanding | Class A shares | Class B shares | All share classes |
| At start of year | 3,229,500 | 63,762,851 | 66,992,351 |
| Exercised call options | – | 264,758 | 264,758 |
| Repurchase of treasury shares | – | -200,000 | -200,000 |
| Conversion of Class A shares to Class B shares | – | – | – |
| At year-end | 3,229,500 | 63,827,609 | 67,057,109 |
Note 21
Untaxed reserves
| Parent Company | 2020-03-31 | 2019-03-31 |
| Tax allocation reserve, 2013/2014 | - | 67 |
| Tax allocation reserve, 2014/2015 | - | 75 |
| Tax allocation reserve, 2015/2016 | - | 55 |
| Tax allocation reserve, 2016/2017 | - | 91 |
| Tax allocation reserve, 2017/2018 | 47 | 75 |
| Tax allocation reserve, 2018/2019 | 84 | 84 |
| Tax allocation reserve, 2019/2020 | - | - |
| Accumulated excess depreciation/amortisation | 0 | 0 |
| Closing balance | 131 | 447 |
|
SEK 101 million of the Parent Company’s total untaxed reserves of SEK 470 million represent deferred tax included in the deferred tax line item in the consolidated balance sheet. | ||
Note 22
Provisions for pensions and similar obligations
Addtech has defined-contribution and defined-benefit pension plans in Sweden, Switzerland and the UK. The plans cover a large number of employees. Subsidiaries in other countries have mainly defined-contribution pension plans. The Parent Company’s data on pensions are reported in accordance with the Swedish Act on Safeguarding Pension Obligations.
DEFINED-CONTRIBUTION PLANS
These plans are mainly retirement pension plans, disability pensions and family pensions. Premiums are paid on an ongoing basis during the year by each Group company and the size of the premium is based on the salary. The pension cost for the period is included in profit or loss.
Obligations for retirement pensions and family pensions for salaried employees in Sweden are secured by insurance in Alecta. According to statement UFR 3 of the Swedish Financial Reporting Board, this is a defined-benefit plan covering multiple employers. For the 2019/2020 financial year, the Company did not have access to information enabling it to report this plan as a defined-benefit plan. Thus the pension plan according to ITP2 and secured by insurance in Alecta is recognised as a defined-contribution plan. The year’s fees for pension insurance with Alecta totalled SEK 31 million (30). Fees for the next financial year are considered to be in line with those for the year reported. The collective consolidation level for Alecta was 133 percent (144) in March 2020. The pension plan according to ITP1 is recognised as a defined-contribution plan.
DEFINED-BENEFIT PLANS
These pension plans primarily comprise retirement pensions. Each employer generally has an obligation to pay a lifelong pension and vesting is based on the number of years of employment. The employee must subscribe to the plan for a certain number of years to be fully entitled to retirement benefits. Each year increases the employee’s entitlement to retirement benefits, which is recognised as pension earned during the period and as an increase in pension obligations. Both funded and unfunded pension plans apply in Sweden, Switzerland and the UK. The funded pension obligations are secured by plan assets that are managed by insurance companies. The Group estimates that SEK 4 million (1) will be paid in 2020/2021 to the funded defined-benefit plans. The total number of commitments of 963 (902) included in the obligation consists of 132 active (71), 488 paid-up policy holders (518) and 343 pensioners (313).
| Group | Parent Company | |||||||
| Pension liability as per balance sheet | 2020-03-31 | 2019-03-31 | 2020-03-31 | 2019-03-31 | ||||
| Pension liability PRI | 270 | 250 | 15 | 15 | ||||
| Other pension obligations | 62 | 10 | – | – | ||||
| Total cost of defined benefit plans | 332 | 260 | 15 | 15 | ||||
| Group | Parent Company | |||||||
| Obligations for defined benefits and the value of plan assets | 2020-03-31 | 2019-03-31 | 2020-03-31 | 2019-03-31 | ||||
| Funded obligations: | ||||||||
| Present value of funded defined benefit obligations | 255 | 53 | – | – | ||||
| Fair value of plan assets | -193 | -43 | – | – | ||||
| Net debt, funded obligations | 62 | 10 | – | – | ||||
| Present value of unfunded defined benefit obligations | 270 | 250 | 15 | 15 | ||||
| Net amount in the balance sheet (obligation +, asset –) | 332 | 260 | 15 | 15 | ||||
| Pension obligations and plan assets per country: | ||||||||
| Sweden | ||||||||
| Pension obligations | 303 | 281 | 15 | 15 | ||||
| Plan assets | -25 | -23 | – | – | ||||
| Net amount in Sweden | 278 | 258 | 15 | 15 | ||||
| Switzerland | ||||||||
| Pension obligations | 200 | – | – | – | ||||
| Plan assets | -149 | – | – | – | ||||
| Net amount in Switzerland | 51 | – | – | – | ||||
| Great Britain | ||||||||
| Pension obligations | 22 | 22 | – | – | ||||
| Plan assets | -19 | -20 | – | – | ||||
| Net amount in Great Britain | 3 | 2 | – | – | ||||
| Net amount in the balance sheet (obligation +, asset –) | 332 | 260 | 15 | 15 | ||||
| Group | Parent Company | |||||||
| Reconciliation of net amount for pensions in the balance sheet | 2019/2020 | 2018/2019 | 2019/2020 | 2018/2019 | ||||
| Opening balance | 260 | 229 | 15 | 15 | ||||
| Cost defined benefit plans | 13 | 8 | 1 | 1 | ||||
| Payment of pension benefits | -7 | -7 | -1 | -1 | ||||
| Funds contributed by employer | -4 | -1 | – | – | ||||
| Acquisition of companies | 12 | 31 | – | – | ||||
| Translation effects | 54 | – | – | – | ||||
| Revaluations | 4 | 0 | – | – | ||||
| Gains and losses from settlements | 0 | 0 | – | – | ||||
| Net amount in balance sheet (obligation +, asset -) | 332 | 260 | 15 | 15 | ||||
| Group | ||||||||
| Changes in the obligation for defined benefit plans recognised in the balance sheet | 2019/2020 | 2018/2019 | ||||||
| Opening balance | 303 | 273 | ||||||
| Pensions earned during the period | 7 | 2 | ||||||
| Pensions earned prior periods, vested | – | 0 | ||||||
| Interest on obligations | 7 | 7 | ||||||
| Benefits paid | -5 | -8 | ||||||
| Funds contributed by employee | 3 | – | ||||||
| Revaluations: | ||||||||
| Gain (-)/loss (+) resulting from demographic assumptions | – | – | ||||||
| Gain (-)/loss (+) resulting from financial assumptions | 20 | 25 | ||||||
| Experienced-based gains (-)/losses (+) | -14 | 5 | ||||||
| Acquisition of companies | 189 | – | ||||||
| Translation effects | 15 | 1 | ||||||
| Gains and losses from settlements | – | -2 | ||||||
| PRESENT VALUE OF PENSIONS OBLIGATIONS | 525 | 303 | ||||||
| Group | ||||||||
| Changes in plan assets | 2019/2020 | 2018/2019 | ||||||
| Opening balance | 43 | 44 | ||||||
| Funds contributed by employer | 4 | 1 | ||||||
| Funds contributed by employee | 3 | – | ||||||
| Benefits paid | 2 | -1 | ||||||
| Interest income recognised in profit or loss | 1 | 1 | ||||||
| Return on plan assets, excluding interest income | -6 | -1 | ||||||
| Acquisition of companies | 135 | – | ||||||
| Translation effects | 11 | 1 | ||||||
| Gains and losses from settlements | – | -2 | ||||||
| Fair value of plan assets | 193 | 43 | ||||||
| Group | Parent Company | |||||||
| Pension costs | 2019/2020 | 2018/2019 | 2019/2020 | 2018/2019 | ||||
| Defined-benefit pension plans | ||||||||
| Cost for pensions earned during the year | 7 | 2 | 1 | – | ||||
| Revenue for pensions earned in prior periods | 0 | – | – | |||||
| Interest on obligations | 7 | 7 | 0 | 1 | ||||
| Interest income recognised in profit or loss | -1 | -1 | – | – | ||||
| Total cost of defined benefit plans | 13 | 8 | 1 | 1 | ||||
| Total cost of defined contribution plans | 157 | 139 | 7 | 7 | ||||
| Social security costs on pension costs | 19 | 17 | 1 | 1 | ||||
| Total cost of benefits after termination of employment | 189 | 164 | 9 | 9 | ||||
| Group | ||||||||
| Allocation of pension costs in the income statement | 2019/2020 | 2018/2019 | ||||||
| Cost of sales | 37 | 32 | ||||||
| Selling and administrative expenses | 146 | 126 | ||||||
| Net financial items | 6 | 6 | ||||||
| Total pension costs | 189 | 164 | ||||||
| 2019/2020 | 2018/2019 | |||||||
| Actuarial assumptions | Sweden | Switzerland | Great Britain | Sweden | Switzerland | Great Britain | ||
| The following material actuarial assumptions were applied in calculating obligations: | ||||||||
| Discount rate, 1 April, % | 2.10 | – | 2.86 | 2.55 | – | 3.08 | ||
| Discount rate, 31 March, % | 1.30 | 0.45 | 2.81 | 2.10 | – | 2.86 | ||
| Future salary increases, % | 2.25 | 1.00 | – | 2.75 | – | – | ||
| Future increases in pensions (change in income base amount), % | 1.20 | 0.00 | 2.61 | 1.80 | – | 3.08 | ||
| Employee turnover, % | 10.0 | – | – | 10.0 | – | – | ||
| Expected ‘G regulation’, % | – | – | – | – | – | – | ||
| Mortality table | DUS14 | BVG 2015 GT | S3PMA/S3PFA | DUS14 | – | S2PMA/S2PFA | ||
| Sensitivity of pension obligations to changes in assumptions | Sweden | Switzerland | Great Britain | Total | ||||
| Defined benefit pension obligations at 31 March 2020 | 303 | 200 | 22 | 525 | ||||
| The discount rate increases by 0.5% | -30 | -18 | -2 | -50 | ||||
| The discount rate decreases by 0.5% | 35 | 19 | 2 | 56 | ||||
| Expected life expectancy increases by 1 year | 15 | – | 1 | 16 | ||||
| Expected life expectancy decreases by 1 year | -15 | – | -1 | -16 | ||||
The discount rate used is equivalent to the interest rate on high-quality corporate bonds or mortgage bonds with a maturity equivalent to the average maturity of the obligation and currency.
For Swedish pension liabilities, the interest rate for Swedish housing bonds is used as a basis and for pension liabilities in Switzerland and the UK, the interest rate for corporate bonds is used. The weighted average maturity for the commitment is around 18 years (18), which is used as a basis on which to determine the discount rate. Future increases in pensions are based on inflation assumptions. In Sweden, the remaining period of employment (life expectancy) is based on DUS 14, statistical tables prepared by Insurance Sweden and Försäkringssällskapet (the Insurance Society), in Switzerland on BVG 2015, and in the UK on S3PA, CMI 2019.
The sensitivity analyses are based on a change in an assumption, while all other assumptions are held constant. The same method, the projected unit credit method, is used to calculate the sensitivity in the defined-benefit obligation as to calculate the pension obligation recognised in the balance sheet.
Note 24
Non-current interest-bearing liabilities
| Group | ||||
| 2020-03-31 | 2019-03-31 | |||
| Liabilities to credit institutions: | ||||
| Maturing within 2 years | 917 | 201 | ||
| Maturing within 3-5 years | 710 | 418 | ||
| Maturing in five years or later | 0 | 1 | ||
| Total non-current liabilities to credit institutions | 1,627 | 620 | ||
| Lease liability: | ||||
| Maturing within 2 years | 141 | - | ||
| Maturing within 3-5 years | 251 | - | ||
| Maturing in five years or later | 66 | - | ||
| Total lease liability | 458 | - | ||
| Other interest-bearing liabilities: | ||||
| Maturing within 2 years | 48 | 84 | ||
| Maturing within 3 years | 17 | 11 | ||
| Maturing within 4-5 years | 4 | – | ||
| Maturing in five years or later | – | 4 | ||
| Total other non-current interest-bearing liabilities | 69 | 99 | ||
| Total | 2,154 | 719 | ||
| The non-current interest-bearing liabilities in the Parent Company at 31 March 2020 was 1,600 (600). Other interest-bearing liabilities largely consist of additional contingent considerations with estimated interest of 5.0 percent. | ||||
| The Addtech Group’s non-current liabilities to credit institutions are divided among currencies as follows: | ||||
| 2020-03-31 | 2019-03-31 | |||
| Currency | Local currency | SEKm | Local currency | SEKm |
| SEK | 1,600 | 1,600 | 600 | 600 |
| Other | 3 | 27 | 0 | 0 |
| Total | 1,627 | 600 | ||
| Parent Company | ||||
| 2020-03-31 | 2019-03-31 | |||
| Liabilities to credit institutions: | ||||
| Maturing within 2 years | 900 | 200 | ||
| Maturing within 3-5 years | 700 | 400 | ||
| Maturing in five years or later | – | – | ||
| Total non-current liabilities to credit institutions | 1,600 | 600 | ||
| Liabilities to Group companies | 127 | 264 | ||
| TOTAL | 1,727 | 864 | ||
| The Parent Company's liabilities to Group companies have no fixed maturity dates. | ||||
Note 25
Current interest-bearing liabilities
| Group | Parent Company | |||
| 2020-03-31 | 2019-03-31 | 2020-03-31 | 2019-03-31 | |
| Credit facilities | ||||
| Approved overdraft facility | 1,300 | 1,301 | 1,300 | 1,300 |
| Approved other liabilities to credit institutions | 1,201 | 400 | 1,200 | 400 |
| Reclassifications | -300 | -400 | -300 | -400 |
| Unutilised portion | -2,044 | -270 | -2,044 | -270 |
| Credit amount utilised | 157 | 1,031 | 156 | 1,030 |
| Other liabilities to credit institutions | 22 | 119 | 0 | 100 |
| Lease liability | 169 | – | – | – |
| Other interest-bearing liabilities | 114 | 127 | – | – |
| Total | 462 | 1,277 | 156 | 1,130 |
| Other interest-bearing liabilities largely consist of additional contingent considerations with estimated interest of 5.0 percent. | ||||
| The Addtech Group’s current liabilities to credit institutions are divided among currencies as follows: | ||||
| 2020-03-31 | 2019-03-31 | |||
| Currency | Local currency | SEKm | Local currency | SEKm |
| SEK | – | – | 100 | 100 |
| CNY | 10 | 15 | 8 | 11 |
| EUR | 1 | 7 | 1 | 8 |
| Total | 22 | 119 | ||
| The Group’s financing is primarily managed by the Parent Company Addtech AB. | ||||
Note 26
Accrued expenses and prepaid income
| Group | Parent Company | |||
| 2020-03-31 | 2019-03-31 | 2020-03-31 | 2019-03-31 | |
| Other deferred income | 1 | 1 | 0 | – |
| Salaries and holiday pay | 331 | 286 | 14 | 14 |
| Social security costs and pensions | 99 | 95 | 8 | 6 |
| Other accrued expenses 1) | 97 | 76 | 8 | 3 |
| Total | 528 | 458 | 30 | 23 |
| 1) Other accrued expenses mainly consist of overhead accruals. | ||||
| SEKm | Notes | 2019/2020 | 2018/2019 |
| ASSETS | |||
| NON-CURRENT ASSETS | |||
| Intangible non-current assets | 14 | 1 | – |
| Property, plant and equipment | 15 | 0 | 1 |
| Non-current financial assets | |||
| Interests in Group companies | 17 | 1,004 | 1,004 |
| Receivables from Group companies | 17 | 1,804 | 1,984 |
| Total non-current financial assets | 2,808 | 2,988 | |
| TOTAL NON-CURRENT ASSETS | 2,809 | 2,989 | |
| CURRENT ASSETS | |||
| Receivables from Group companies | 536 | 808 | |
| Other receivables | 16 | 2 | |
| Prepaid expenses and accrued income | 19 | 11 | 11 |
| Total current receivables | 563 | 821 | |
| Cash and bank balances | - | 0 | |
| TOTAL CURRENT ASSETS | 563 | 821 | |
| TOTAL ASSETS | 3,372 | 3,810 | |
| EQUITY AND LIABILITIES | 20 | ||
| SHAREHOLDERS’ EQUITY | |||
| Restricted equity | |||
| Share capital | 51 | 51 | |
| Legal reserve | 18 | 18 | |
| Unrestricted equity | |||
| Retained earnings | 228 | 387 | |
| Profit for the year | 209 | 203 | |
| TOTAL SHAREHOLDERS’ EQUITY | 506 | 659 | |
| UNTAXED RESERVES | 21 | 131 | 447 |
| PROVISIONS | |||
| Provisions for pensions and similar obligations | 22 | 15 | 15 |
| LIABILITIES | |||
| Liabilities to Group companies | 24 | 127 | 264 |
| Liabilities to credit institutions | 24 | 1,600 | 600 |
| Total non-current liabilities | 1,727 | 864 | |
| Liabilities to credit institutions | 25 | 156 | 1,130 |
| Accounts payable | 3 | 5 | |
| Liabilities to Group companies | 791 | 665 | |
| Tax liabilities | 0 | 0 | |
| Other liabilities | 13 | 2 | |
| Accrued expenses and deferred income | 26 | 30 | 23 |
| Total current liabilities | 993 | 1,825 | |
| TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES | 3,372 | 3,810 |