Thank you. Welcome to the presentation of our Q2 report for Addnode Group. With me, I also have our CFO, Lotta Jarleryd, who will be doing part of the presentation. I know it's a busy day for most of you and a lot of companies reporting, so let's get to it. If we start the presentation and move to the next slide. Go straight to the slide called Strategy for Profitable Growth. I just want to give you a quick update on the Addnode strategy, where we are. We are basically doing the same thing that we have been doing the last 10 years. We have an acquisition driven growth strategy, meaning that we do normally five acquisitions a year, and we support our companies with organic growth. We believe in a decentralized strategy, a lot of decision power close to our customers.
We support our companies, and we find synergies and collaboration where possible. This strategy has taken us from a net sales of SEK 1 billion in 2009, going to almost SEK 4 billion in net sales before COVID-19 here in 2019, and we have been able to improve our margins as well. If we move to the next slide describing our three divisions, called Software and Digital Solutions in three divisions. We are doing our operations in three divisions, Design, Product Lifecycle Management, and Process. The Design is basically we serve the needs of those who want needs to design, build, and manage. We do that both for the construction and facility management and also for the manufacturing side. We do that in three different companies. Here we are partnered to Autodesk, and we also have our own developed software in the company Symetri and Tribia, SaaS offerings.
If we move to the PLM division, here we are the world-leading partner to the French company Dassault, providing software and services with the need for digitalization. We are doing that on a more global basis. If you go to the third division Process, this is directly to the public sector in Sweden predominantly, providing software and services for the need of local and central government. With that as an introduction to Addnode Group, we'll move to the next slide because inside describing where we are at. Most of you are following us knows that we are predominantly operating in the northern part of Europe. We have been growing in the U.K. predominantly the last year. We serve customers on a global basis. With that as an introduction, I would like to move to the next slide with the agenda for today.
Lotta and I will be covering a summary of Q2, talk a few seconds about the acquisitions we have done in the quarter, and then move on to our group performance, and then we will finish up with the financial position. Going to Q2 2020 on the next slide seven. The second quarter was dominated by the COVID-19 pandemic, but our three divisions were impacted to various degrees. We have a situation where the majority of our employees are working from home, and with the help of video meetings and other digital tools, we are continuing to work closely with our customers. I am impressed and proud of our employees' loyalty and capacity to keep the business going. What we see is that demand from the public sector in Sweden remains stable, and in the Process Management division, we have been awarded contracts from state agencies, regions, and municipalities.
Later when we go through the figures, we will see that we have increased the profitability a lot. On the other hand, the COVID-19 pandemic has negatively impacted sales in the Design Management PLM divisions. We have actively reduced operating costs during the quarter through furloughs, voluntary sales cuts, and general cost-cutting, and we have delivered a strong result given the difficult market conditions. To realize synergies and adapt the organization in division PLM, we have launched a cost-cutting program there that will save costs for approximately SEK 50 million-SEK 60 million on a running basis. We'll come back later to that in the presentation. We've also done an acquisition in the quarter of a SaaS company called Netpublicator, who will strengthen our offerings into the public sector in Sweden.
Looking ahead already, we can see that the future, as you all know, is hard to predict, but we can also see the strength in our business model with a large share of recurring revenue are stabilizing the business and our financials. With that as an overall introduction to the quarter, I would like to hand over. Oh, sorry. Before that, the acquisitions on the next slide, Q2 2020. We acquired a company this quarter called Netpublicator. It's a pure SaaS company providing digital document and meeting management to public administration. We have been working closely with them the last couple of years, and they are already a part of our offerings. The company net sales is about SEK 60 million, good profitability.
The arrangement with the owners is that we acquire 50% of the company as now, and then we will acquire the rest in installments the next coming three years. It will be part of the Process Management division from 1st of July. With that, I would like to hand over to our CFO, Lotta Jarleryd, who will take you through the numbers for the Q2 on the next slide.
Thank you, Johan. Page nine, please. I would like to start with an overview of the consolidated financial performance. In the second quarter, which was dominated by the COVID-19 pandemic and its effects, we saw a decrease in revenue of 2%, SEK 846 million compared to SEK 864 million quarter-over-quarter. The acquired growth of 11% mainly pertained to Excitech in the U.K., which was acquired earlier this year. The currency-adjusted organic growth was minus 12%. Both Design Management and PLM divisions faced negative growth following lower new sales of third-party licenses and services caused by the challenging market conditions. Process Management, however, reported an organic growth of 3%. The demand for the division solutions remained good during the quarter. We are now trailing at a yearly rate of SEK 3.8 billion in net revenue.
EBITDA for the second quarter was SEK 56 million, which was 24% less than previous year. The EBITDA margin was pushed down to 6.6%. Please note that the reported EBITDA includes costs associated with the reduction of organization and cost structure in the Product Lifecycle Management division. Costs for conducting the measures are estimated to SEK 35 million in total, of which SEK 20 million were recognized in the second quarter. Annual savings are estimated to about SEK 50 million to SEK 60 million, with full effect from the first quarter 2021. EBIT adjusted for these restructuring costs was SEK 76 million and adjusted EBITA margin of 9.0%. During the second quarter, personnel costs were reduced by SEK 29 million through government support measures in several of the countries where we operate. The government-backed initiatives relate mainly to short-term furloughs and reduced Social Security costs. Next page, please.
With regard to the net revenue distribution, recurring revenue constituted 66% of total revenue in the second quarter 2020. The base of recurring revenue has continuously grown over the years. As Johan previously mentioned, the stable base of recurring revenue gives downside protection in times of lower demand. Even though we saw total net revenue go down by 2%, recurring revenue increased in the second quarter by 3% to about SEK 550 million. We have so far been able to keep the renewal rate on a stable level. Over to you, Johan, again.
Thank you, Lotta. With that, I would like to dive in a little bit more to the different divisions, starting off with division Design Management on slide 11. Looking at Design Management, net sales increased with 13% in Q2. Organic growth was still negative, meaning that we had an impact of the acquisition of Excitech that we did in the first quarter. Adjusted for currency effect, organic growth, was minus 13%. We could see a clear downfall in the net sales due to the COVID pandemic in this division, which was mainly reflected in lower new sales of Autodesk solutions. However, recurring revenue show continued stability with the renewal rate at the same level as before the onslaught of the pandemic.
The division's offering based on proprietary software surrounding BIM and collaboration portal for the construction and the infrastructure sector, as well as property management, show continued favorable development. The EBITDA was SEK 36 million compared to SEK 35 million last year, giving an EBITDA margin of 9.5% compared to 10.4%. Personnel costs were reduced through short-term furloughs, lower Social Security taxes, and voluntary salary cuts, had a good impact on the operating profit. Even though new sales were slow, we landed some new customers. For example, a facility management system to Region Gävleborg in Sweden, a design system, and competence-sharing systems to Transport for London, for example. We also passed a milestone for our Interaxo product portal for construction infrastructure projects when it exceeded 50,000 users during the second quarter.
Overall, the net sales down as expected as we sort of guided in the last quarter, but we have been very successful through hard work of the team in the division to mitigate that on the cost side. Moving on to the PLM division on the next slide. Net sales decreased to SEK 267 million during the second quarter. We had a negative growth of 20%, meaning that here we were more affected on net sales than Design. EBITDA was negative, SEK 9 million, but as Lotta mentioned before, in those SEK 9 million, you will find SEK 20 million related to restructuring costs. Before we go into more in detail why we are doing the restructuring, I would like to mention that the organization in Nordic was quite stable, and we were doing some good business with relation to where we are in the market with the pandemic.
It was tougher market conditions in Germany and U.K. We have been able to land some new deals as well on the 3DEXPERIENCE platform in Germany, for example, to a company called Trützschler, providing tools for spinning and the cotton industry. There are possibilities to do business even though it's tough. With regards to the restructuring, to give you some background on that, between the years 2000 and 2019, this division has grown by an average of 37%, 37, has been achieved both through organic and through acquisition. This has taken us to the position as a world-leading partner to Dassault Systèmes with our own unique add-on products and services.
To realize synergies and adapt organization and operating costs to lower volume, several measures have been taken during the quarter that will reduce the cost on a yearly basis with around SEK 50 million-SEK 60 million, with full effect from the first quarter in 2021. We will gradually see that during this year. Doing that means that we will take costs in this quarter, SEK 20 million to realize it, and SEK 15 million is expected in the third quarter, totaling to SEK 35 million. With that, I would like to move on to the next division, the division Process Management on the next slide. We are happy to see that we have an organic growth here.
As you all know, who have been following us, we are saying that if we are able to do 2%-3% organic growth in this division, it's a good statement, and we've been able to do that. What is most satisfying is that we've been able to increase the productivity in the organization significantly, moving the operating EBITDA margin from 11%-18% compared to last year. Here we also have some impact from the reduction of personal cost due to state efforts, but the majority of the efficiency improvement in the quarter is related to our own doing. The demand for the division solutions has been good during the quarter, and we have won several tenders. For example, for a new case management system for the Swedish National Board of Housing, Building and Planning.
We have also won several tenders for the more local government in Sweden with regards to case management system, and a part of that has been with the Netpublicator offering that we described earlier as an acquisition. Here we have had a good operation in the Q2, and it seems that we will be able to follow that through during the year. With that, I would like to hand over to our CFO again, who will guide you through the cash flow in the quarter.
Thank you, Johan. We usually start the year with a strong first quarter in terms of cash generation from operating activities. This is attributable to our business model with a large share of advanced payments for maintenance contracts in the beginning of the year. This year, we continued the good cash generation also in the second quarter. Cash flow from operating activities was SEK 188 million, more than SEK 200 million above previous year. Intensified work with cash collection procedures and temporarily improved payment terms from certain suppliers and customers have had a positive effect on cash flow over the quarter. With regard to cash flow from financing activities, it was also positive. No dividend for 2019 was paid to the shareholders, as decided by the AGM in May. We made no debt repayments during the quarter. Next slide, please.
We are operating in this uncertain environment supported by a strong balance sheet. We have a solid financial position. As just mentioned, we had a very strong operating cash flow during the first six months of 2020. This means that we, by the end of June 2020, had a cash position of SEK 675 million. This is almost half a billion more than in June previous year. In addition to that, we have unutilized credit facilities of another SEK 400 million. The equity ratio was 40%, and net debt amounted to SEK 117 million. Other larger changes in the balance sheet items mainly refer to the acquisitions of Excitech and Unizite in January this year. Over to you, Johan.
Thank you, Lotta. With that introduction to the second quarter, we would like to open up for Q&A and questions, and we are happy to answer any questions from you.
Thank you. If you do wish to ask a question, please press 01 on your telephone keypad now. If you wish to withdraw your question, you may do so by pressing 02 to cancel. Once again, it's 01 on your telephone keypad if you would like to register for a question. Our first question comes from the line of Daniel Thorsson from ABG. Please go ahead. Your line is now open.
Yes, perfect. Thank you very much. I start off with two questions regarding the cost program in PLM. What practically is it targeting, and where is it tilted geographically? That's the first one. Second one following on that. In terms of the potential EBITDA margin beyond 2021, is it possible to reach a margin that is higher than we have seen historically for the business unit?
Thank you. With regards to the cost structuring program, I understand practically where it’s targeting. Our main cost is personnel. That means that the majority of the cost structuring program is with regards to reducing the number of staff. That’s what will happen during this year. With that, there will follow some cost for offices that will of course be reduced, but that will be an effect of being less people delivering the services to our customers. If you look at geographically, we have in the last quarter reports, talked about that there are some things happening in Germany. There are in Germany and the rest of the program is sort of evenly spread through the division, but there’s a majority of the program that will happen in Germany.
If we talked about margin-wise, we still believe that we can do better, that we are doing, and that's one of the reason why we're doing this cost structuring program. There are room for efficiency.
Okay. Even if we compare it to a good year as we saw in 2019, I think you had the highest margin of slightly above 9%. It should have the potential to be better than that going forward.
We are aiming for that. It also has to do with regards, as we have an acquisition-driven strategy, sometimes we acquire company that have a lower margin, and then we aim to drive that up. Fundamentally, yes, we should be able to do better, but sometimes we hurt ourselves in a matter of speaking, by acquiring companies that has a lower operating margin, and then we try to drive that up. Fundamentally, yes, I'm not satisfied with it. We are not doing better.
Excellent. Then another one on the governmental support of SEK 29 million in the quarter. Could you split that up per business unit if possible? Also what's your forecast for support in Q3?
We can't split it up. We're not disclosing exactly where it is invested. The only thing we can get is say that, as we said, we have the net sales going down in division Design and PLM. You will find the majority there, sort of follows the business, but we're not disclosing exactly. With regards to where we're going forward, I think the projections are, We're not saying too much and say that we will see effect of it in Q3 as well, but then it will fade out going forward.
Okay. Is it reasonable to expect anything close to SEK 29 million in Q3 as well?
It will go down, but it will have an effect in the Q3.
Okay. That's good. I have a question on the recurring revenue. You said that they grew, reported 3% year-over-year in Q2. What was the development organically? I guess it was a decline, if you have that figure.
When you say the 3%, was that with the report, as we have reported out?
Yeah, reported recurring revenue growth year-over-year, 3% reported. I was thinking of the organic development. It was probably down.
No, you're true in your assumptions, yes. We will see it's definitely not an organic growth in it this quarter. No, that's true.
Okay. We'll leave it there. A final one, Autodesk, they held an investor day in June launching new financial targets where they reported a target at 16%-18% sales CAGR between 2020 and 2023. Given that you partly resell their products within Design Management, is it too aggressive to expect a similar organic growth rate for that division and that business unit for the next three to five years? Anything else that moves that picture from what Autodesk is saying?
You mentioned that they said that organic growth the next coming year should be like 23% or what was it?
16% to 18% per year up until 2023.
We will not deliver 16%-18% organic growth the next coming years in that business.
Is it anything that makes you deliver something lower than Autodesk because you're still selling their products? Is it because you have more own products, you have other services around it, et cetera, that are developing a bit slower than that? How should we think about that?
We have more services in our businesses, and we are probably in a more mature part of the world representing for them. Autodesk are a worldwide operation, probably means that they have part of the business in the world that probably has a higher growth rate as well. I think probably a mix of that, if I'm sort of guessing.
Yeah.
We are not planning for that high organic growth in this business.
Perfect. I stop there. Thank you very much.
Thank you. Our next question comes from the line of John Hiltner from Interfund. Please go ahead, your line is open.
Hi. My first question is on the organic sales drop. Can you say a little bit more about it? Is it from less new licenses, that is not as many new customers coming in, or did you see lower revenues from your customers perhaps laying off people, so less licenses due to less customers in that sense? Did you see a lot of existing customers leaving you, or could you just explain a little bit more where the drop came from?
Thank you for that question. It mainly relates to the businesses when we are talking about in design and the PLM business. Just first to answer your last question, we can't say that we are losing customers. What's happening now is that the customers are hesitant to do new investment due to the uncertainty. Things take longer. They are waiting. They are not starting new projects by themselves, so the services are affected. Also, as you mentioned, a lot of redundancies. Our customers, they are looking at cost. It means that they are not investing in new licenses. They are rather utilizing the license pool that they have in a better manner. We can't say that we are losing customers to others in the market. That's very important.
The sort of the activities from our customers are lower, and that is hurting both new sales licenses and services for new projects. The projects that are sort of already in motion, they are continuing. There's not a hard shutdown of that. At the same time, if you have customers in the automotive industries who are not running their plants right now, then that means that this quarter, they are not focusing on buying new licenses.
Given that the trend in, you mentioned auto seems to be still under pressure than the other industries who are picking up. Can you mention anything about the trend during the quarter? If you saw pickup in June versus May, perhaps?
I can't really say that we have seen any pickup in the figures, so to speak, month-to-month. At the same time, we can see the trend that in the market, we have a sort of belief that Q4 will be better than a major sort of pickup there. It may take longer time, but the drop will not be that bad, if you see where I'm coming at.
Yeah. Sort of. Coming to your cash flow, you had a pretty big working capital relief in the quarter. Can you explain that a little bit more, please?
Yes. As I said before, we have focused a lot on seeing to it that we get our invoices paid, as soon as possible, of course. We had a high new sales in the first quarter, where a lot of payments came in the second quarter. We also got from some of our suppliers, we got prolonged payment terms. That will don't go on forever, so we probably see a turn back on that in September. Also, some of the customers, especially in the public sector, they actually paid us before the invoices were due. We have been very active in working on our cash flow in the second quarter.
Just finally, if you look at your margin in Process Management, it increased a lot, giving a rather stable top-line trend. Is this mainly due to a lot of costs being lower in this quarter due to less travel and what have you? Did you get furlough in this segment, so you reduced costs in that sense? Different things.
You have a component of that, but most of it is the better efficient in organization, meaning that we are able to deliver more with our own people, reducing sub-consultants, and better project management. I think that's the main driver of the operating profit in the division this quarter compared to last year. Of course, we have some effect of such costs as well, but that's sort of minor compared to our own operational efficiency. Operational efficiency is the fact that we are able to manage projects better with our own people rather than sub-consultants.
This is a setup that you will keep going forward. You should have that efficiency going forward as well.
Yes, that's our ambition.
The final one on the cost savings. You talk about synergies. The savings that you take out, is it over that you've seen for a while and been planning for, that you now execute on?
Yes, it has to do with that. For the last couple of years, we have been acquiring the number one sole partner in Germany, U.K., Benelux, and several countries. Now we are coming together to create one Technia, that's the brand and division. That means that we have synergies both on the administration, the cost side, sales organization, and creating one company of that. Probably it takes a little bit longer in our setting, but now it's mature to do that, and then we realize it. It's in several areas. It means that overlaps, yes, that you sort of need less actually. Yes, it's overlap, but it's in several areas.
Good. Thank you very much.
Thank you.
Thank you. Our next question comes from the line of Erik Erlander from Handelsbanken. Please go ahead. Your line is open.
All right. Thank you very much, and thank you for a good presentation, both of you. First of all, regarding the cost structuring program that you have now initiated, why is it done right now, and/or why wasn't it done before? As you mentioned, it is mainly a consulting business, meaning that if you lose top line, you also lose profits. You don't have a lot of synergies. Is it that these kind of people didn't really do the projects that you think will be demand for post-COVID, or why hasn't this happened earlier?
Starting with that, I think we described it quite clearly in the Q4 and Q1 report, saying that we were aiming for a higher growth as we started this year. That's one of the reasons why the growth that we were hoping for were not materializing the market, and then we had made a bet early on saying that we would see growth in the company, so we were sort of front-loading the organization. That's one of the reasons we need to do that. Having said that, I think the majority is that sometimes you have to find the right time to realize the synergies from having the growth, meaning that you never know when's the right time.
Then you had the one question say, are there sort of a not just a cost restructuring, but rather that we can see that we will focus more on different type of offering within the division going forward. That's part of it as well. We can see that we are moving from some sort of old box moving, selling organization to more of a service and product organization. It's part of that as well. It's a little bit of all of the above, and you can always discuss the timing, but we felt that was the right time to do it.
Okay. It's actually, getting these people laid off from the organization doesn't really matter because you do not think that this offering that you have previously had that these people were doing will not be as large in demand as it has been historically.
No, I think that's not fair to put it. No, I think there are some part of that, but that's not the reason for what it is. We are not leaving an old offering. The restructuring program doesn't represent that we're leaving an old offering. It's more of us saying that we were actually, as we mentioned in the Q4 and Q1 report, we were sort of front-loading the organization for a growth in 2020, and we couldn't imagine that we would see the COVID pandemic. That's one of the reasons. We also had, as we have been growing by like 37% every year, the last five years, and we have done that through acquisitions.
We could see that now it was time to realize the synergies that we can go from going from a Nordic organization to a German organization, to U.K. organization, to the U.S., and the global organization, and there are synergies, and we need to do it. I wouldn't say that we are sort of leaving a part of the offering behind us. It doesn't represent this cost reduction program. It more realizes the synergies that we can see within the organization going forward, and that we are able to run a more efficient organization going forward.
Okay. Yeah, that's very clear. My second question is actually if you compare Design Management and PLM. At least my view of the Design Management division is that it's less cyclical than the PLM. Obviously, if you look at the organic growth numbers, it was -13% in Design and -20% in PLM. Having that said, it was still a large minus number in Design, and I know that you have an industry exposure there as well. Is it fair to say that the industry exposure within Design Management grew by -20% as well, organically, and the rest or a positive growth then within the BIM segment that you're also talking about in the Q2 report?
I wouldn't say that because you have to realize in the BIM segment as well, you have a lot of the consulting companies as customers. The technical consultants, for example. They are the one providing the design and the BIM projects for the construction companies. That means that they have been a little bit hesitant. For example, you will find customers like, in Sweden they are called ÅF, or AFRY . They are called Sweco, for example. They have also been hesitant with regards to consultants. There has been a drop there as well in that sector in this quarter.
Okay. Yeah. Rather it is about these companies doesn't hire new people, then they don't buy new software from you as well, because organic growth in those companies was around 1%, 2%, especially in Sweco and in Ramboll and so on.
They are to say that this quarter, everybody's a little bit very hesitant to do new investments. You utilize the things that you have even better. You get focused on cost and you don't order new things.
Sure.
Hopefully they might start doing it after the summer, just this quarter is heavily affected. I think every board has been telling every management in every company, do mind the cost, because we don't know what will happen the coming months. I think that's the effect that we see in our new sales of licenses and services.
All right. Perfect. Then also just to follow up on that one, how large a percentage is industry exposure within Design Management?
Hopefully I could give you that figure, but I really can't do that because it depends on how you sort of split it. Because we have a lot of what we probably would call AEC customers, but they are at the same time a manufacturing company providing their products to the end market of the AEC market. We can't really give any figures for that. Having said that, as you remember, there are three brands within the division. The division of the company Tribia and Service Works Global, with our own software. They are working with the construction and the facility management. The brand of Symetri, who are providing the Autodesk solutions, they are the one working with both the manufacturing and the AEC market.
We are predominantly in that division, more tilted to the AEC market as we did the acquisition of Excitech, as they have a much stronger sort of tilting towards the AEC market. If any, we have more of a exposure to the AEC market rather than the manufacturing market.
Okay. Great. My last question is, you have now taken out the SEK 20 million in restructuring costs in Q2 for PLM. Will the next SEK 15 million come in Q3 or later, or when will it come?
Q3. That's what we are planning for.
Okay, great. Thank you very much both of you. Have a fantastic summer.
Thank you.
Thank you. Our next question is a follow-up question from the line of Daniel Thorsson from ABG. Please go ahead. Your line is open.
Yes. Thank you. I have a question on the M&A contribution in Q2. If I'm right on numbers here, it looks like Excitech contributed with SEK 290 million in Q1, although it didn't contribute in the full quarter. Now in Q2, it only contributed with SEK 90 million. Is that correct? Is it a seasonal pattern or is it just a very weak development for Excitech in this quarter?
I think, first of all, they contributed fully from January 1st in Q1. Independent of the figure.
Okay
consolidated from January 1st.
Yeah.
Having said that, Q1 was the strongest quarter in sales ever for Excitech and Symetri. It was a very strong quarter in Q1. Then we moved to Q2, that was probably the one of the worst quarter. We have a very significant change there. You're correct in that. Having said so, and there's a seasonal pattern as well, that Q1 is always stronger, has been historically, and Q2 is weaker.
Okay.
It's a little bit of all of the above.
Okay. That's very helpful.
The comps are strong and the outcome is lower in Q2.
How does it look for the rest of the year? Q3, Q4, anything we should have in mind from last year?
Normally, the seasonal pattern, if you're looking before the COVID-19, is that Q1 for this part of the business is always stronger, and Q2 is a little bit weaker because there's a lot of sales activities rather than sales being done. You can see sort of Q3 and Q is sort of a normal, and Q4 a little bit stronger. This is a sales-driven organization, and you can find that the Autodesk quarter ends in January. The year ends in January. That means that Q1 for them ends in April, and Q2 in July, et cetera. With American sales-driven organization where the last month in the quarter generally generates some push in the sales there. That's an explanation as well.
Yeah. Understood. Thanks for that.
Thank you. We have another follow-up question from the line of John Hussmann from Enter Fonder. Please go ahead. Your line is open.
Thanks. Sorry if you mentioned this and I missed it, I am sorry. Did you say anything about how much of support you got from governments in terms of furlough or something else in the quarter?
Yes, SEK 29 million in total.
Okay, great. How does that look going into the second half of this year? Have you ended programs? I know some are ending in June at other companies. What's your plans?
Some programs will continue into Q3.
And you-
In the second quarter.
There will be roughly the same effect in the third quarter as in the second?
No, lower. Lower effect.
Lower effect?
Yes.
Okay. Thanks. That's all. Thank you.
Thank you. As we have no more questions registered, I now hand back to our speakers for any closing comments.
Yes. We have a question sent in by email here from Fredrik Nilsson at Redeye. EBITDA margin in Design Management decreased by only 1 percentage point despite -13% in organic growth, and Excitec with lower margins joining the numbers. Is it mainly due to support measures, or is there also mix effect or something else?
No. I think the main reason why we were able to uphold the result even though the net sales drops significantly is that we were quick with actions, meaning that where there are a lot of people in furlough, there are a lot of people voluntarily giving up some salaries and those kinds of cost-cutting measure. That's sort of the effect that we can see in the business where we are able to uphold the EBITDA margin. I think it's a lot of quick action and a response from the different management teams in the divisions that made us being able to uphold the EBITDA margin, even though the net sales dropped.
The second question is, best Q2 EBITDA margin Process Management since 2013. Could you give some quantification of effect from the support measures?
I think part of that we answered previously, saying that the majority of the efficiency in the Q2 Process Management is related to our own measures. We do have a couple of SEK million of that is support measures, the overall majority is actually that we are doing the business quite much better. As I mentioned, with regard to less sub-consultants that drive in the margin, cost-efficient measures. Of course, there are some with regards to not traveling as much, the majority is operating efficiency. Thank you. We have no further mailed questions. If there are no more questions, I would like to thank you for taking the time to listen in and ask a lot of good questions to us. Any more questions, or should we stop there?
There are no more questions registered over the audio.