INTERIM REPORT 1 JANUARY 31 MARCH 2020 · 3 AddLife Interim report 1 January – 31 March 2020 Group development in the quarter Net sales in the quarter increased by 25 percent to

1 AddLife Interim report 1 January – 31 March 2020

INTERIM REPORT 1 JANUARY – 31 MARCH 2020

” High demand and strong profit growth!”

1 JANUARY – 31 MARCH 2020 (3 MONTHS)

• Net sales increased by 25 percent to SEK 1,053 million (845), of which organic growth amounted to

12 percent and acquired growth amounted to 13 percent.

• EBITA increased by 51 percent to SEK 106 million (70), corresponding to an EBITA-margin of

10.0 percent (8.3).

• Profit after tax increased by 54 percent to SEK 54 million (35).

• Earnings per share amounted to SEK 1.92 (1.32). Earnings per share for the last 12 months amounted

to 5.73 SEK (5.12).

• Cash flow from operating activities amounted to SEK 80 million (99).

• The equity ratio was 42 percent (45).

• Return on working capital (P/WC) amounted to 54 percent (51).

• On 8th of January all shares in Italian EuroClone S.p.A were acquired for the Labtech business area.

The company has annual sales of about SEK 280 million.

• New credit arrangements were signed with Handelsbanken and Danske Bank, which has increased

available credits with additional SEK 200 million.

3 months ending 12 months ending

SEKm 31 Mar 20 31 Mar 19 change 31 Mar 20 31 Dec 19

Net sales 1,053 845 25% 3,687 3,479

EBITA 106 70 51% 341 305

EBITA-margin, % 10.0 8.3 9.2 8.8

Profit before tax 69 43 60% 208 182

Profit for the period 54 35 54% 161 142

Earnings per share before dilution, SEK 1.92 1.32 52% 5.73 5.12

Earnings per share after dilution, SEK 1.91 1.32 52% 5.71 5.11

AddLife in brief

AddLife is an independent provider in Life Science that offers high-quality products, services and advice to both the private and public sector in

Europe. The Group is divided into two business areas: Labtech and Medtech. The Group comprises some 45 operating subsidiaries that provide

equipment, instruments, medical devices and reagents, as well as advice and technical support to customers primarily in healthcare, research

and academia, along with the food and pharmaceutical industries.


Comments by the CEO The Covid-19 pandemic spreading around the world during the quarter has

led to major, sudden changes in society. How we live, work and socialise is

challenged at the core when communities are locked down and citizens are

quarantined. We have seen war-like conditions in hospitals and severe lack

of medical supplies, personal protective equipment and diagnostic tests.

As a supplier of crucial medical supplies to the healthcare sector, we at

AddLife have had first-hand experience of the effects of the corona crisis.

Despite many challenges, we have successfully delivered large volumes of

high-demand products to healthcare whose personnel have been on the

frontline caring for seriously ill patients. I am humble and incredibly proud

of the commitment and loyalty my colleagues have shown to customers and

how they have struggled to resolve the issues in this extreme situation.

Alongside the acute crisis in healthcare, researchers are intensively

searching for new cures and vaccines, while more and more countries are

beginning to think about how they will return to a more normal life. The experiences from the pandemic will change the

demands for tomorrow’s healthcare, home care and research in Life Science and we can expect increased demands for

self-sufficiency and preparedness in many countries.

The first quarter was strong and demand for our products increased sharply as Covid-19 spread around the world.

Sales rose 25 percent in the first quarter to SEK 1,053m, including organic growth of 12 percent. EBITA increased 51

percent to SEK 106 million and EBITA margin strengthened to 10.0 percent.

For most of our companies, operations changed radically as the Covid-19 outbreak hit Europe. From mid-March,

demand increased sharply with higher orders from particularly health services and diagnostic laboratories. Several of our

companies achieved their best-ever results in March. At the same time, it has been difficult to obtain products from

various manufacturers and to get distribution to work in response to the exceptional increase in demand for similar

products simultaneously, all over the world. We have worked intensively to ensure that all products meet regulatory

requirements and the quality standard that healthcare expects. So far, our companies have found various innovative

solutions in effort to help customers with deliveries of critical products. During the quarter, our subsidiary Mediplast

received orders that were outside normal agreements from both Swedish and Norwegian customers, corresponding to

about SEK 100 million, for personal protective equipment to be delivered over the next two quarters. In many countries,

direct procurements are now used for Covid-19-related products to public customers.

The business situation in research varies by market. Demand from several pharmaceutical companies remains stable,

while we see an increased demand from Covid-19-related research projects which received additional funding. In

contrast, our academic research customers in several markets cut back on purchasing since many countries temporarily

closed their colleges and universities. Demand for welfare technology in Norway and other assistive devices for home

care in the Nordic markets has been high during the quarter. The trend related to the need for increased care in the

home is becoming increasingly apparent.

Once again, our decentralised business model shows tremendous strength. With closeness to the market and

decentralised responsibility, the companies can rapidly adjust, finding business opportunities and new solutions to best

meet the current needs of the customers. A short-term focus is necessary in times of crisis but limits the potential to

offer new solutions for the long-term and several procurement processes have been delayed on the market. A majority

of the employees work from home and meet customers digitally, but we are limited with respect to physical meetings

and providing maintenance and installation services. It is extremely rewarding to see the commitment and initiative

revealed to meet the needs of customers.

Acquisitions

In January we completed the acquisition of EuroClone S.p.A in the Labtech business. The company has 58 employees

and is expected to contribute annual sales of SEK 280 million. The Italian EuroClone is a leading supplier of instruments

and consumables in the field of cell and molecular biology. The acquisition represents the entry into the Italian market in

a segment where AddLife is already an established supplier in the Nordic market through the BioNordika companies.

AddLife is constantly searching for interesting new acquisition candidates and suppliers with Nordic and European

potential, companies that drive the market in our areas Labtech and Medtech.

Kristina Willgård

President and CEO


Group development in the quarter Net sales in the quarter increased by 25 percent to SEK 1,053 million (845). Organic growth was 12 percent and

acquired growth totalled 13 percent. Exchange rate changes had a marginal positive impact on net sales, corresponding

to SEK 2.5 million. EBITA increased by 51 percent to SEK 106 million (70) and EBITA-margin amounted to 10.0 percent

(8.3). Exchange rate changes had a positive effect on EBITA of 0.2 percent, corresponding to SEK 0.1 million. Net

financial items amounted to SEK -5 million (-2) and profit after financial items amounted to SEK 69 million (43). Profit

after tax for the quarter increased with 54 percent amounting to SEK 54 million (35) and the effective tax rate was 22

percent (19).

Development in the business areas

Labtech

Companies in the Labtech business are active in the market areas diagnostics, biomedical research and laboratory

equipment.



Net sales 611 504 21% 2,088 1,981

EBITA 72 52 39% 222 202

EBITA-margin, % 11.8 10.3 10.6 10.2

Labtech’s net sales increased by 21 percent in the first quarter to SEK 611 million (504), of which organic growth

increased by 5 percent, acquired growth totalled 16 percent and exchange rate changes had a marginal positive effect.

EBITA increased by 39 percent to SEK 72 million (52), corresponding to an EBITA-margin of 11.7 percent (10.3).

The trend in the Labtech business area continues to be favourable. We had strong organic growth in the diagnostics

businesses, while growth in the research companies was weaker.

Demand was high in several segments within Diagnostics. Growth was primarily driven by the Covid-19 pandemic,

where patient treatment requires an array of tests in addition to the Covid-19 tests that we offer the market. Hospital

ICU departments in particular have increased their consumption of various tests. Our traditional segment Blood Gas

Analysis, which provides important information about pulmonary function, saw strong growth in sales of new

instruments, but especially in reagent consumption during the quarter. Demand for all diagnostic tests is greater than

the supply from manufacturers and the delivery situation is challenging in many cases. During the quarter, reagents

accounted for a higher than normal total proportion of the product mix. Growth was strongest in the diagnostics

businesses in Denmark, Finland, Norway, Poland and Austria during the quarter.

Demand from research companies was robust until the Covid-19 outbreak, at which time the market radically

changed. Several academic customers at universities have reduced their activity and, in several countries, the universities

were closed completely. In contrast, demand from pharmaceutical companies continued to be robust, while demand

from research groups working on projects related to Covid-19 increased. Demand related to food testing has also been

high in several markets. For our subsidiary that delivers its own advanced instruments on an international market, the

lockdown of China in February resulted in lower sales. Sales to Chinese customers account for about 30% of sales in the

company. Newly acquired EuroClone has delivered according to expectations, but the situation in Italy is exactly the

same as in other markets: challenging and difficult to assess moving forward. Growth in the quarter has been strongest

in the research companies in Denmark and Sweden.


Medtech

Companies in the Medtech business provides medical device products within the medtech market and assistive

equipment within home healthcare.



Net sales 442 341 30% 1,599 1,498

EBITA 37 22 68% 131 116

EBITA-margin, % 8.3 6.5 8.1 7.7

For the quarter, Medtech’s net sales increased by 30 percent to SEK 442 million (341), including organic growth of

22 percent and acquired growth of 8 percent, while exchange rate fluctuations had a marginally positive effect. EBITA

rose by 68 percent to SEK 37 million (22) and EBITA margin amounted to 8.3 percent (6.5).

Medtech operations had a strong performance during the quarter in the Nordic region and in several of the markets

in Central and Eastern Europe. The Covid-19 pandemic that struck in March has of course had a major impact on the

quarter, and health services in all countries have ordered huge volumes of medical technology products and especially

personal protective equipment for healthcare personnel. Thanks to our strong long-term supplier relationships, we have

been able to offer our contract customers deliveries under both existing agreements as well as extra orders. In addition,

we have identified new suppliers in Asia where our own quality procedures have ensured that the products meet

regulatory requirements and maintain the quality standard that health services expect. The challenges are great since

enormous quantities of the same type of products are in great demand all over the world. For some product groups,

weekly consumption equates normal consumption for a full year. Several new participants have entered the market and

the price picture changes from day to day for the products that are in greatest demand. The situation entails not only a

shortage of production capacity, but also great challenges finding logistics solutions to get the products to Europe. Our

subsidiary Mediplast delivered an extra order of 1 million face masks to Norway. The company also received extra

orders for personal protective equipment corresponding to approximately SEK 100 million outside the usual framework

agreements from Swedish customers in Region Skåne, Stockholm and Västra Götaland, as well as from Sykehusinnkjöp

in Norway, to be delivered over the next two quarters. In addition to personal protective equipment, demand is strong

in several other product areas during the quarter. However, we have seen a slowdown in sales of products for non-

emergency surgery over the past month, as all hospital resources were dedicated to emergency and intensive care

because of the pandemic. Standard surgical procedures are expected to begin in several countries at some point during

the second quarter.

During the quarter, product ownership regarding the entire product portfolio from Wellspect, which was acquired in

2019, was finally registered and the product line is now approved for sale with our CE mark.

Demand and sales growth for various types of assistive equipment for use in home care were strong, completely in

line with expected trends related to the increased need for eldercare. Based on the pandemic, we see orders placed

earlier than expected regarding both various technical aids and welfare technology. During the quarter, we received

several new Norwegian municipal contracts for our welfare technology solution. Our new Norwegian home care

company, Funksjonsutstyr, had a strong start to the new year with several installations of bathroom solutions. In the

Swedish market we had major deliveries of bathroom solutions that origins from our Finnish company. We see clear

sales synergies between various home care companies. Our Finnish home care company continued to have a more

challenging market because of delays in new construction projects for assisted living facilities in Finland.


Financial position and cash flow

At the end of the interim period the equity ratio stood at 42 percent (45). Equity per share totaled SEK 53.69 (52.27) and

the return on equity at the end of the financial year was 11 percent (10). Return on working capital, P/WC (EBITA in

relation to working capital) amounted to 54 percent (51).

The Group’s interest-bearing net debt at the end of the interim period totalled SEK 1,102 million (902), including

pension liabilities of SEK 80 million (80) and leasing liabilities of SEK 235 million (215). The net debt/equity ratio,

calculated on the basis of net debt including provisions for pensions and leasing liability, totalled 0.7, compared to 0.6 at

the beginning of the interim period.

Cash and cash equivalents, consisting of cash and bank balances, together with approved but non-utilised credit

facilities, totalled SEK 565 (439) million on 31 March 2020. The increase in cash and cash equivalents was due to AddLife

signing new credit arrangements with Handelsbanken and Danske Bank and therefore increased available credits with

additional SEK 200 million.

Cash flow from operating activities reached SEK 80 million (99) during the interim period. The reduced cash flow

relates to tied up working capital in inventory and trade receivables, in addition to supplier advances related to the

greater deliveries of personal protective equipment due to Covid-19. Acquisitions of companies amounted to SEK 66

million (0). Investments in non-current assets during the interim period amounted to SEK 23 million (17). Disposals of

non-current assets amounted SEK 2 million (1). Repurchase of treasury shares amounted to SEK 31 million (0). Exercised

and issued call options amounted to SEK 0 million (8).

Employees

At the end of the interim period, the number of employees was 1,003, compared to 932 at the beginning of the financial

year. During the period, implemented acquisitions led to an increase of 58 employees. The average number of

employees for the last 12-month period was 927 (903).

Acquisitions

Acquisitions completed from the 2019 financial year are distributed among the Group’s business areas as follows:

Acquisitions Time Net sales,

SEKm*

Number of

employees*

Business area

Business from Wellspect HealthCare, Sweden April, 2019 170 14 Medtech

Lab-Vent Controls A/S and Koldt & Ryø El A/S, Denmark August, 2019 52 20 Labtech

Fysionord i Sollefteå, Sweden September, 2019 6 2 Medtech

Funksjonsutstyr AS, Norway December, 2019 50 7 Medtech

EuroClone S.p.A, Italy January, 2020 280 58 Labtech

* Refers to conditions at the time of acquisition on a full-year basis.

On 28 November 2019 AddLife signed an agreement on the acquisition of 100 percent of the shares in EuroClone S.p.A,

the acquisition became effective a of 8 January 2020. The company is expected to contribute about SEK 280 million to

annual sales. The Italian EuroClone is a leading supplier of instruments and consumables in the field of cell and

molecular biology in Italy. The acquisition represents AddLife’s entry into the Italian market in a segment in which the

company is already an established supplier in the Nordic market.

The effect of the acquisition on the AddLife Group's net sales was SEK 68 million, on EBITA SEK 6 million, on operating

profit SEK 4 million and on profit after tax for the financial year SEK 3 million.

The fair value of not yet paid contingent consideration for acquisitions made during the financial year is calculated to

SEK 14 million, which is approximately 84 percent of the maximum outcome. The outcome depends on the results

achieved in the companies and has a set maximum level.


According to the preliminary acquisition analyses, the assets and liabilities included in the acquisitions carried out during

the interim period 2020 were as follows:

Transaction costs for the acquisitions totalled SEK 3 million and are recognized as selling expenses.

Shares structure

The share capital at the end of the interim period stood at SEK 58 million.

Share class Number of shares

Class A shares 1,156,304

Class B shares 27,468,269

Total number of shares before repurchases 28,624,573

Of which repurchased class B shares -690,250

Total number of shares after repurchases 27,934,323

The total number of shares in AddLife were unchanged during the interim period. Repurchase of own shares during the

period amounted to 125,000 B shares with a purchase price of SEK 248.00 per share. Thereafter own holdings amount to

690,250 Class B shares corresponds to 2.4 percent of the total number of shares and 1.8 percent of the votes. The

average purchase price for shares held in treasury amounts to SEK 208.48 per share. The average number of treasury

shares held during the financial year was 583,107 (513,129). The share price at 31 March 2020 was SEK 287.00 and the

most recent price paid for the AddLife share on 27 April 2020 was SEK 319.00.

AddLife has three outstanding call option programmes totalling 619,250 Class B shares. Issued call options for treasury

shares have resulted in a calculated dilution effect based on average share price for the year of approximately 0.3

percent (0.1).

Outstanding

programme

Number of

options

Corresponding

number of

shares

Proportion of

total shares

Exercise

price

Initial

exercise

price

Expiration period

2019/2023 215,000 215,000 0.8% 306.20 - 20 Jun 2022 – 28 Feb 2023

2018/2022 170,000 178,500 0.6% 224.10 234.40 16 Jun 2021 – 28 Feb 2022

2017/2021 215,000 225,750 0.8% 212.70 222.50 16 Jun 2020 – 28 Feb 2021

Total 600,000 619,250

Fair value

Intangible non-current assets 72

Other non-current assets 13

Inventories 33

Other current assets 99

Deferred tax liability/tax asset -19

Other liabilities -147

Acquired net assets 51

Goodwill 44

Consideration 1) 95

Less cash and cash equivalents in acquired businesses -15

Contingent consideration not yet paid -14

Effect on the Group’s cash and cash equivalents 66

1) The consideration is stated excluding acquisition expenses.


Parent company The Parent Company’s net sales for the interim period amounted to SEK 11 million (8) and profit after financial items

amounted to SEK -1 million (-2). At the end of the interim period, the Parent Company's net financial debt amounted to

SEK 726 million (660). The share capital at the end of the interim period was SEK 58 million (58).

Accounting policies

This interim report was prepared in accordance with IFRS and IAS 34 Interim Financial Reporting. Information in

accordance with IAS 34.16A exist, except in the financial statements and the related notes also in other parts of the

interim report. The interim report for the parent company was prepared in accordance with the Swedish Annual

Accounts Act (1995:1554) and the Securities Market Act (2007:528) in compliance with recommendation RFR 2

Accounting for Legal Entities of the Swedish Financial Reporting Board. The accounting policies and basis for

calculations applied in the 2019 annual report for AddLife AB were also used in the interim report except for the revised

accounting policies described below. The amendments to IFRSs applicable from January 1, 2020 have no effects to

Addlife's financial reports for the three-month period ended March 31, 2020.

Alternative performance measures AddLife presents certain financial measures in the interim report that are not defined according to IFRS. The Company

believes that these measures provide valuable supplemental information to investors and the Company's management

as they allow for evaluation of trends and the Company’s performance. Since all companies do not calculate financial

measures in the same way these are not always comparable to measures used by other companies. These financial

measures should therefore not be considered as a replacement for measurements as defined under IFRS. This report

provides information in greater detail regarding definitions of financial performance measures.

Transactions with related parties No transactions with related parties that materially affected the Group’s position and earnings took place during the

financial year.

Events after the end of the interim period The Board of Directors has decided to withdraw the dividend of SEK 2.40 per share and instead propose that no

dividend is paid at the time for the annual general meeting. The Board sees an opportunity to call for an extraordinary

general meeting later this year for deciding on a dividend for 2019.

No other events of significance to the Group occurred after the end of the interim period.

Risks and uncertainties AddLife’s earnings and financial position, as well as its strategic position, are affected by various internal factors within

AddLife’s control and various external factors over which AddLife has limited influence. AddLife’s most significant

external risks are the state of the economy and market trends combined with public sector contracts and policy

decisions, as well as competition. The risks and uncertainties are the same as in previous periods. For more information,

see the section “Risks and uncertainties” in the administration report (page 32-36), in AddLife’s annual report 2019.

The Parent Company is indirectly affected by the above risks and uncertainties through its function in the Group.

Stockholm, 28 April 2020

Kristina Willgård

President and CEO


Conference call

Investors, analysts and the media are invited to a conference call where CEO Kristina Willgård and

CFO Martin Almgren will present the interim report. The presentation will be held in English and takes about

20 minutes, after which there will be an opportunity to ask questions.

The teleconference will be at 10:00 a.m. on 28 April 2020.

The presentation will be available via the following link: https://5569958126.globalmeet.com/MartinAlmgren2

Please call on: +46 8 22 90 90 code: 327497

Financial calendar

The Annual General Meeting (AGM) of AddLife AB (publ.) will be held on 7 May 2020, Stockholm.

The interim report for the period 1 January – 30 June 2020 will be published on 17 July 2020.

The interim report for the period 1 January – 30 September 2020 will be published on 22 October 2020.

The Year-end report for the period 1 January – 31 December 2020 will be published on 3 February 2021.


Business areas

Net sales by business area 2020 2019

Quarterly data, SEKm Q1 Q4 Q3 Q2 Q1

Labtech 611 568 445 464 504

Medtech 442 420 357 380 341

Parent Company and Group items - - - - -

AddLife Group 1,053 988 802 844 845

EBITA by business area 2020 2019

Quarterly data, SEKm Q1 Q4 Q3 Q2 Q1

Labtech 72

70 41 39 52

Medtech 37

37 26 31 22

Parent Company and Group items -3

-5 -2 -2 -4

EBITA 106

102 65 68 70

Depreciation intangible assets -32

-29 -29 -26 -25

Operating profit 74

73 36 42 45

Finance income and expenses -5 -6 -2 -4 -2

Profit after financial items 69

67 34 38 43

Net sales by revenue type 3 months ending 31 Mar 20 3 months ending31 Mar 19

SEKm Labtech Medtech The Group Labtech Medtech The Group

Products 459 384 843 363 300 663

Instruments 103 48 151 96 35 131

Service 49 10 59 45 6 51

Net Sales 611 442 1,053 504 341 845

Net sales by revenue type 12 months ending 31 Mar 20 12 months ending 31 Dec 19

SEKm Labtech Medtech The Group Labtech Medtech The Group

Products 1,464 1,394 2,858 1,368 1,310 2,678

Instruments 438 170 608 431 157 588

Service 186 35 221 182 31 213

Net Sales 2,088 1,599 3,687 1,981 1,498 3,479

Net sales by business area 3 months ending 12 months ending

SEKm 31 Mar 20 % 31 Mar 19 31 Mar 20 % 31 Dec 19

Labtech 611 21 504 2,088 5 1,981

Medtech 442 30 341 1,599 7 1,498

Parent Company and Group items - - - -

AddLife Group 1,053 25 845 3,687 6 3,479

EBITA and EBITA-margin by business area and operating profit for the Group


SEKm 31 Mar 20 % 31 Mar 19 % 31 Mar 20 % 31 Dec 19 %

Labtech 72 11.8 52 10.3 222 10.6 202 10.2

Medtech 37 8.3 22 6.5 131 8.1 116 7.7

Parent Company and Group items -3 -4 -12 -13

EBITA 106 10.0 70 8.3 341 9.2 305 8.8

Depreciations of

intangible non-current assets

-32 -25 -116 -109

Operating profit 74 7.0 45 5.4 225 6.1 196 5.6

Financial income and expenses -5 -2 -17 -14

Profit after financial items 69 43 208 182


Consolidated income statement, condensed

Income statement 3 months ending 12 months ending

SEKm 31 Mar 20 31 Mar 19 31 mar 20 31 Dec 19

Net sales 1,053 845 3,687 3,479

Cost of sales -684 -557 -2,409 -2,281

Gross profit 369 288 1,279 1,198

Selling expenses -228 -189 -816 -777

Administrative expenses -60 -56 -237 -233

Research and Development -6 -6 -24 -24

Other operating income and expenses -1 8 -23 32

Operating profit 74 45 225 196

Financial income and expenses -5 -2 -17 -14


Tax -15 -8 -47 -40

Profit for the period 54 35 161 142

Attributable to:

Equity holders of the Parent Company 54 35 160 141

Non-controlling interests 0 0 1 1

Earnings per share (EPS) before dilution, SEK 1.92 1.32 5.73 5.12

Earnings per share (EPS) after dilution, SEK 1.91 1.32 5.71 5.11

Average number of shares after repurchases ’000s 28,041 26,673 28,108 27,771

Number of shares at end of the period, ’000 27,934 28,219 27,934 28,059

EBITA 106 70 341 305

Depreciations included in operating expenses

– property, plant and equipment -35 -29 -130 -124

– intangible non-current assets from acquisitions -27 -20 -99 -92

– other intangible non-current assets -5 -5 -17 -17

Statement of comprehensive income 3 months ending 12 months ending

SEKm 31 Mar 20 31 Mar 19 31 Mar 20 31 Dec 19

Profit for the period 54 35 161 142

Components that may be reclassified to profit for the

period

Foreign currency translation differences for the

period 10

26 4 20

Components that will not be reclassified to profit for

the period

Revaluations of defined benefit pension plans - - -12 -12

Tax attributable to items not to be reversed in profit

or loss - - 3 3

Other comprehensive income 10 26 -5 11

Total comprehensive income 64 61 156 153

Attributable to:

Equity holders of the Parent Company 63 61 155 152

Non-controlling interests 1 0 1 1


Consolidated Balance sheet, Condensed,

SEKm

31 Mar 20 31 Dec 19 31 Mar 19

Goodwill 1,025 972 831

Other intangible non-current assets 841 789 631

Property, plant and equipment 383 353 359

Financial non-current assets 25 24 31

Total non-current assets 2,274 2,138 1,852

Inventories 520 452 401

Current receivables 738 585 545

Cash and cash equivalents 90 99 62

Total current assets 1,348 1,136 1,008

Total assets 3,622 3,274 2,860

Total equity 1,509 1,476 1,492

Interest-bearing provisions 109 104 97

Non-interest-bearing provisions 134 127 90

Non-current interest-bearing liabilities 190 150 165

Non-current non-interest-bearing liabilities 1 1 4

Total non-current liabilities 434 382 356

Non-interest-bearing provisions 7 3 4

Current interest-bearing liabilities 893 747 427

Current non-interest-bearing liabilities 779 666 581

Total current liabilities 1,679 1,416 1,012

Total equity and liabilities 3,622 3,274 2,860

Statement of change in Group

equity, SEKm

1 Jan 20 – 31 Mar 20 1 Jan 19 – 31 Dec 19

SEKm

Equity excl. non-

controlling

interests

Non-controlling

interests

Total

equity

Equity excl. non-

controlling

interests

Non-controlling

interests

Total

equity

Amount at beginning of period 1,467 9 1,476 931 1 932

Right Issue - - - 490 - 490

Exercised and issued call options - - - 12 - 12

Repurchase of treasury shares -31 - -31 -43 - -43

Dividend - - - -62 -2 -64

Non-controlling interests - - - -13 9 -4

Total comprehensive income 63 1 64 152 1 153

Amount at the end of the period 1,499 10 1,509 1,467 9 1,476


Cash flow statement, condensed 3 months ending 12 months ending

SEKm 31 Mar 20 31 Mar 19 31 mar 20 31 Dec 19


Adjustment for items not included in cash flow 68 49 258 239

Income tax paid -20 -11 -61 -52

Changes in working capital -37 18 -24 31

Cash flow from operating activities 80 99 381 400

Net investments in non-current assets -21 -16 -87 -82

Acquisitions and disposals -66 - -391 -325

Cash flow from investing activities -87 -16 -478 -407

Dividend paid to shareholders - - -62 -62

Exercised and issued call options - 8 4 12

Right Issue - 490 - 490

Repurchase of treasury shares -31 - -74 -43

Other financing activities 26 -584 255 -355

Cash flow from financing activities -5 -86 123 42

Cash flow for the period -12 -3 26 35

Cash and cash equivalents at beginning of period 99 61 62 61

Exchange differences on cash and cash equivalents 3 4 2 3

Cash and cash equivalents at end of the period 90 62 90 99

Fair values on financial instruments 31 Mar 20 31 Dec 19

SEKm

Carrying

amount Level 2 Level 3

Carrying

amount Level 2 Level 3

Derivatives measured at fair value through profit or loss 2 2 0 0 0 -

Total financial assets at fair value per level 2 2 0 0 0 -

Derivatives measured at fair value through profit or loss 0 0 0 1 1 -

Contingent considerations 31 - 31 18 - 18

Total financial liabilities at fair value per level 31 - 31 19 1 18

The fair value and carrying amount are recognized in the balance sheet as shown in the table above.

For quoted securities, the fair value is determined on the basis of the asset’s quoted price in an active market, level 1. As at the

reporting date the Group had no items in this category.

For currency contracts and embedded derivatives, the fair value is determined on the basis of observable market data, level 2.

For contingent considerations, a cash-flow-based valuation is performed, which is not based on observable market data,

level 3. For the Group’s other financial assets and liabilities, fair value is estimated to be the same as the carrying amount.

Contingent considerations, 3 months ending 12 months ending


Carrying amount, opening

balance 18 9 9 9

Acquisitions during the period 14 - 32 18

Consideration paid - - - -

Reversed through profit or loss - -2 -9 -9

Interest expenses - 0 - 0

Exchange differences -1 1 -1 0

Carrying amount, closing balance 31 8 31 18


Key financial indicators 12 months ending

31 Mar 20 31 Dec 19 31 Mar 19 31 Dec 18 31 Dec 17

Net sales, SEKm 3,687 3,479 2.730 2,482 2,333

EBITA, SEKm 341 305 257 245 234

EBITA margin, % 9.2 8.8 9.4 9.9 10.0

Profit growth, EBITA, % 32 25 8 5 24

Return on working capital (P/WC), % 54 51 58 62 63

Profit for the period, SEKm 161 142 138 129 120

Return on equity, % 11 10 14 16 17

Financial net liabilities, SEKm 1,102 902 627 882 588

Financial net liabilities/EBITDA, multiple 2.3 2.1 2.2 3.3 2.3

Net debt/equity ratio, multiple 0.7 0.6 0.4 0.9 0.8

Equity ratio, % 42 45 52 35 40

Average number of employees 927 903 686 620 579

Number of employees at end of the period 1,003 932 888 873 592

Key indicators include IFRS 16 from 2019, comparative figures have not been restated.

For definitions of key financial indicators, see page 17.

Key financial indicators per share 12 months ending

31 Mar 20 31 Dec 19 31 mar 19 31 Dec 18 31 Dec 17

Earnings per share (EPS), SEK 5.73 5.12 5.42 5.15 4.76

Diluted EPS, SEK 5.71 5.11 5.42 5.14 4.76

Cash flow per share from operating activities, SEK 13.56 14.40 8.51 7.05 8.21

Shareholders’ equity per share, SEK 53.69 52.27 52.87 36.30 29.72

Average number of shares after repurchases, ’000s 28,108 27,771 25,485 25,115 25,326

Average number of shares adjusted for repurchases

and dilution, ’000s

28,188 27,824 25,485 25,134 25,326

Number of shares outstanding at end of the period,

’000s

27,934 28,059 28,219 25,647 25,326

The number of shares from a historical perspective has been restated to take the bonus issue into account (i.e. the value of the subscription right)

in the completed new share issue, and has been used in all calculations of metrics for SEK per share. The conversion factor is 1.041.


Parent company summary

Income statement 3 months ending 12 months ending


Net sales 11 8 44 41

Administrative expenses -13 -12 -50 -49

Operating profit/loss -2 -4 -6 -8

Interest income/expenses and similar items 1 2 1 2

Profit/loss after financial items -1 -2 -5 -6

Appropriations - - 48 48

Profit/loss before taxes -1 -2 43 42

Income tax expense 0 0 -6 -6

Profit/loss for the period 1 -2 43 36

Balance sheet

SEKm 31 Mar 20 31 Dec 19 31 Mar 19

Intangible non-current assets 0 0 0

Tangible non-current assets 0 0 0

Non-current financial assets 2,146 2,084 1,905

Total non-current assets 2,146 2,084 1,905

Current receivables 126 110 22

Total current assets 126 110 22

Total assets 2,272 2,194 1,927

Equity 1,123 1,152 1,216

Untaxed reserves 56 56 47

Interest-bearing long-term liabilities 45 48 56

Non-interest-bearing long-term liabilities 2 1 2

Total long-term liabilities 47 49 58

Interest-bearing short-term liabilities 1,029 899 586

Non-interest-bearing short-term liabilities 17 38 20

Total short-term liabilities 1,046 937 606

Total equity and liabilities 2,272 2,194 1,927

Pledged assets and contingent liabilities in the Group

SEKm 31 Mar 20 31 Dec 19 31 Mar 19

Contingent liabilities 43 42 42


Definitions

Return on equity Profit/loss after tax attributable to shareholders, as a percentage of shareholders'

proportion of average equity.

2020-03-31 2019-12-31 2019-03-31

Profit/loss for the period (roll 12 months) 161 142 138

Average equity 1,480 1,362 962

Return on equity 161/1,480=11% 142/1,362=10% 138/962 = 14%

Return on working capital (P/WC) EBITA in relation to average working capital.

2020-03-31 2019-12-31 2019-03-31

EBITA 341 305 257

Average working capital (WC) 632 598 443

P/WC 341/632=54% 305/598=51% 257/443 = 58%

EBITA Operating profit before amortization of intangible assets.

2020-03-31 2019-12-31 2019-03-31

Operating profit (12 months rolling) 225 196 173

Amortization of intangible assets 116 109 84

EBITA 341 305 257

EBITA margin EBITA in percentage of net sales.

2020-03-31 2019-12-31 2019-03-31

EBITA 341 305 257

Net sales 3,687 3,479 2,730

EBITA margin 341/3,687=9.2% 305/3,479=8.8% 257/2,730 = 9,4%

EBITA Operating profit before amortization of intangible assets.

EBITDA Operating profit before depreciation and amortization.

Equity per share Shareholders' proportion of equity divided by the number of shares outstanding

at the end of the reporting period.

Cash flow per share Cash flow from operating activities, divided by the average number of shares.

Net debt/equity ratio Financial net liabilities in relation to shareholders’ equity.

Earnings per share (EPS) Shareholders' proportion of profit/loss for the year in relation to the average

number of shares outstanding.

Profit growth EBITA This year’s EBITA decreased by last year’s EBITA divided by last year’s EBITA.

Financial net liabilities Interest-bearing liabilities and interest-bearing provisions, less cash and cash

equivalents.

Equity ratio Equity as a percentage of total assets.

The key figures presented above are central in order to understand and evaluate AddLifes business and financial position. The

key figures are presented in the “Key financial indicators” table on page 14 and they are commented on pages 1-5.

The comparison figures for income and expense items relate to values for the period January–March 2019 and for balance

sheet items as at 31 December 2019.


This information is information that AddLife AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation

and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set

out above, at 8:00 a.m. CET on April 28, 2020.

AddLife AB (publ), Box 3145, Birger Jarlsgatan 43, SE-103 62 Stockholm. [email protected], www.add.life, org.nr. 556995-8126

Documents

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