Medicover

Quarterly Report • Jul 23, 2021

INTERIM REPORT APRIL–JUNE 2021

Second quarter

• Revenue amounted to €348.9m (€198.8m), an increase of 75.5% with an organic growth of 79.0%.
• Operating profit (EBIT) was €46.2m (€-2.3m), representing an operating margin of 13.3% (-1.2%).
• Net profit amounted to €33.5m (€-8.5m), which represents a net profit margin of 9.6% (-4.3%).
• EBITDA was €71.8m (€25.3m), an increase by 183.9%. EBITDA margin was 20.6% (12.7%).
• EBITDAaL amounted to €58.2m (€12.4m), corresponding to an EBITDAaL margin of 16.7% (6.3%).
• Net cash flow from operating activities was €38.1m (€38.3m).
• Basic/diluted earnings per share were €0.203 (€-0.056).
• Covid-19-pandemic had a net positive impact on operating performance.

First half

• Revenue amounted to €666.1m (€437.6m), an increase of 52.2% with an organic growth of 56.4%.
• Operating profit (EBIT) was €87.8m (€4.1m), representing an operating margin of 13.2% (0.9%).
• Net profit amounted to €59.8m (€-11.0m), which represents a net profit margin of 9.0% (-2.5%).
• EBITDA was €137.3m (€54.3m), an increase by 152.7%. EBITDA margin was 20.6% (12.4%).
• EBITDAaL amounted to €111.1m (€29.2m), corresponding to an EBITDAaL margin of 16.7% (6.7%).
• Net cash flow from operating activities was €95.8m (€74.9m).
• Basic/diluted earnings per share were €0.377 (€-0.062).

REVENUE AND EARNINGS

€ millions (€m)	Q2 2021	Q2 2020	Growth	6M 2021	6M 2020	Growth	FY 2020
Revenue	348.9	198.8	76%	666.1	437.6	52%	997.8
Operating profit (EBIT)	46.2	-2.3	2,114%	87.8	4.1	2,043%	61.3
Operating profit margin	13.3%	-1.2%		13.2%	0.9%		6.1%
Net profit	33.5	-8.5	491%	59.8	-11.0	640%	27.3
Net profit margin	9.6%	-4.3%		9.0%	-2.5%		2.7%
Basic/diluted earnings/(loss) per share, €	0.203	-0.056	463%	0.377	-0.062	708%	0.182
EBITDA	71.8	25.3	184%	137.3	54.3	153%	157.5
EBITDA margin	20.6%	12.7%		20.6%	12.4%		15.8%
EBITDAaL	58.2	12.4	368%	111.1	29.2	280%	108.5
EBITDAaL margin	16.7%	6.3%		16.7%	6.7%		10.9%
EBITA	48.6	5.2	838%	92.7	14.1	559%	76.9
EBITA margin	13.9%	2.6%		13.9%	3.2%		7.7%

Definition and reconciliation of alternative performance measures are available at www.medicover.com/financial-information.

Medicover is a leading international healthcare and diagnostic services company and was founded in 1995. Medicover operates a large number of ambulatory clinics, hospitals, specialty-care facilities, laboratories and blood-drawing points and the largest markets are Poland and Germany. In 2020, Medicover had revenue of €998 million and more than 32,000 employees. For more information, go to www.medicover.com

CEO STATEMENT

The second quarter has been a very busy quarter and the most challenging quarter from a public health perspective. Above all, India was hit very hard with rampant levels of infections, has been busy with treating patients and has taken great responsibility in helping to vaccinate the population. We are now seeing a reduction in cases across our markets, however the Delta variants' progress across Europe is a concern for the future. We have seen strong resumed growth in our Polish integrated healthcare model, with strong member growth and an equally strong pick up in the Fee-For-Service growth, which is very encouraging.

We have continued to see a very strong performance in the second quarter and revenue grew with 75.5% to €348.9m (€198.8m), with an organic growth of 79.0%. Growth in the underlying business is healthy and grew by 40.7% and revenue amounted to €267.1m (€189.8m).

Fee-For-Service and other services (FFS) now represents 61 per cent of total revenue and increased by 123.2 per cent during the quarter.

EBITDA increased by a very strong 183.9% to €71.8m (€25.3m), representing an EBITDA margin of 20.6% (12.7%), a margin expansion of 786 bps. Besides Covid-19 services, increased efficiencies, additional volume and contribution from expansion investments contributed positively to the margin expansion. Margins in the underlying business for the quarter and year to date have increased strongly, both versus 2019 and 2020.

Healthcare Services revenue grew by 68.1% to €185.7m (€110.5m), with an organic growth of 69.5%. The division has 1.4 million members and grew by 9.7% year on year and by more than 35,000 members during the quarter. FFS grew 153.1 per cent in the quarter and represented 55 per cent of divisional revenue.

Healthcare Services EBITDA grew by 81.5% to €33.4m (€18.4m), an EBITDA margin of 18.0% (16.7%). Margin expansion was mainly supported by Covid-19 services.

Diagnostic Services revenue grew by 86.2%, with an organic growth of 92.1%, to €168.7m (€90.6m). The number of laboratory tests for the quarter increased by 58.3% to 32.5 million (20.5 million). 1.1 million Covid-19 tests were performed during the quarter. FFS grew by 102.9 per cent in the quarter and represented 69 per cent of divisional revenue.

Diagnostic Services EBITDA grew a very strong 350.1% to €43.4m (€9.7m), an EBITDA margin of 25.7% (10.6%). Increased demand in the underlying business, Covid-19 services and operational efficiency have contributed to the margin expansion.

We are well ahead of our three-year financial targets ending 2022 and the financial outlook going forward remains strong. There is still considerable uncertainty with the new Delta variants spreading over Europe and we expect to continue to see a demand for Covid-19 testing, genetic sequencing, and patient treatments however at lower levels than before.

Finally, I would like to express a sincere thank you to all our employees who tirelessly continue to provide care with the patient in focus in the best possible way. We have lived and worked under extraordinary circumstances for a long time now and the way we have handled the situation makes me proud.

Fredrik Rågmark CEO

REVENUE SECOND QUARTER 2021

Consolidated revenue amounted to €348.9m (€198.8m), up 75.5% with an organic growth of 79.0%, out of which 42.0% was from the underlying business and 37.0% from Covid-19 services.

Revenue from the underlying business was €267.1m (€189.8m) and grew by 40.7%. Revenue from Covid-19 services amounted to €81.8m (€9.0m).

Negative impacts due to Covid-19 are minor in some activities to almost 100% of activity for select smaller areas, such as Medicover Sport. In certain activities capacity has been partially or fully dedicated to supporting Covid-19 patients such as Medicover Hospitals India ('MHI') and is now transitioning back to normal business.

Due to the large swings in business activities in Q2 2020, comparison is very difficult, however looking at the trend over a longer period in the table below helps to illustrate the underlying situation in the current quarter.

It is not possible to give a reliable estimate of the negative revenue impact of Covid-19 on the underlying business in the current quarter. In the comparative quarter, the net reduction in revenue due to Covid-19 was reliably estimated to €53m.

€m	Q2 2021	Q2 2020	Q2 2019
Revenue underlying
business	267.1	189.8	202.9
Estimated reduction
due to Covid-19	-*	53	-
Total illustrative
underlying business	267.1	242.8	202.9
Year on year growth	10.0%	19.6%

* No estimate included due to inherent uncertainty.

Illustrative Euro year on year growth in the underlying business for Q2 2021 is shown as 10.0% despite the impact of negative exchange swings from the strength of the Euro. It is estimated to be at a minimum 15% and may even be higher as the negative revenue impacts of Covid-19 in the current quarter cannot be reliably quantified. Acquired revenue amounted to €8.0m, which contributed 3.3% and foreign currency negative impacts are estimated to be -4.3% of this illustrative underlying growth.

Despite now being 18 months into the pandemic with expectations of continuing challenges, underlying business growth is strong and robust.

Foreign exchange fluctuations overall had a negative impact of 7.5%, with the strength of the Euro impacting except for the Polish Zloty which was broadly flat over the quarter. The Romanian Lei weakened by 1.7%, the Indian Rupee by 6.6% and the Ukrainian Hryvna by 12.2% year on year.

Healthcare Services revenue reached €185.7m (€110.5m), up 68.1% with an organic growth of 69.5%, out of which 34.2% was from the underlying business and 35.3% from Covid-19 services.

Revenue from the underlying business was €147.8m (€109.4m) and grew by 35.1%. Revenue from Covid-19 services, mainly treating Covid-19 patients, amounted to €37.9m (€1.1m). Although the public starts to learn to live with Covid-19 restrictions, there was still lower demand for certain services principally elective surgeries due to repurposing of facilities and a reluctance to seek care for elective procedures still exists.

There are continuing negative impacts due to Covid-19, most notably in Medicover Sport, which only restarted activities in June and MHI which repurposed facilities for treating Covid-19.

Due to the large swings in business activities in Q2 2020, comparison is very difficult, however looking at the trend in the following table over a longer period helps to illustrate the underlying situation in the current quarter.

It is not possible to give a reliable estimate of the negative revenue impact of Covid-19 in the current quarter. In the comparative quarter, the net reduction in revenue due to Covid-19 was reliably estimated to €33m.

€m	Q2 2021	Q2 2020	Q2 2019
Revenue underlying
business	147.8	109.4	108.6
Estimated reduction
due to Covid-19	-*	33	-
Total illustrative
underlying business	147.8	142.4	108.6
Year on year growth	3.6%	31.4%
* No estimate included due to inherent uncertainty.

Illustrative Euro year on year growth in the underlying business for Q2 2021 is shown as 3.6%, despite the impact of negative exchange swings from the strength of the Euro. It is estimated to be at a minimum 12% and may even be higher as the negative revenue impacts of Covid-19 in the current quarter cannot be reliably quantified. Acquired revenue amounted to €6.1m, which contributed 4.3% and foreign currency negative impacts are estimated to be -3.6% of this illustrative underlying growth.

In European markets, general restrictions resulted in a more controlled environment with decreasing cases over the quarter. Despite these restrictions the employment and economic activity have not been impacted severely. Indeed in certain employment areas labour markets have tightened significantly and real wages increased.

Members increased by 9.7% to 1,419K (1,293K). Healthcare Services has demonstrated the robustness of its medical provision infrastructure, with its well-developed digital health delivery platforms, which have enabled continuing support for members' health needs through the pandemic. The utilisation of these channels has remained at a higher level than prior to the pandemic, particularly in services where digital delivery can match fully or better the in-person delivery. Utilisation overall has returned to normalised levels for the integrated healthcare model which is reassuring as contingent backlogs of illness and diagnosis are being cared for. In the comparative quarter, the employer paid services were impacted with a slight net reduction in membership, however demand recovered quickly.

Fee-For-Service (FFS) activities have managed to maintain good performance in some areas, with dental services in Poland performing well given the Covid-19 restrictions. Healthcare Services operates 278 (256 at year-end) dental chairs in Poland with a greenfield opening schedule and further

acquisitions expected during the year and into 2022. Fertility services were heavily impacted particularly in India with very low levels of activity in April and May only restarting in June on any scale. The Polish fertility business was supported reasonably well and the Ukrainian business was impacted to some degree.

The second/third wave of Covid-19 infections driven by the Delta variants initially in India and latterly more widely has been active throughout most of the quarter with a steep pick up of Covid-19 patients, initially in Maharashtra, followed by all Indian locations in a period of a few weeks. During the period Medicover acquired a hospital in Vizag with potential for up to 500 beds and immediately converted this location into a Covid-19 facility. At the height of the wave over 1,400 Covid-19 patients were being treated, with some hotel facilities also being used for more basic observation/treatment. During the quarter 11,592 inpatient cases were treated and Covid-19 related revenue was €25.9m. At the end of the quarter Healthcare Services operated 20 hospitals in India (16 at year-end), however 2 facilities are scheduled to close with activities transferred to adjacent newer facilities. MHI managed to secure supplies of all needed essential goods and services throughout this crisis, including oxygen supplies. From the latter half of June MHI has been providing vaccinations to the public. This activity is conducted at cost.

Medicover Sport activities restarted and the network of owned gyms consists of 32 facilities across Poland (25 at year-end). A strong interest in Medicover's offering is resuming.

Foreign exchange fluctuations overall had a negative impact of 6.9% year on year, with largest weakness for India and Romania, while the Polish Zloty was largely flat.

Diagnostic Services revenue increased to €168.7m (€90.6m), up 86.2%, with an organic growth of 92.1%, out of which 55.0% was from the underlying business and 37.1% from Covid-19 services.

Revenue from the underlying business was €124.8m (€82.7m) and grew by 50.8%. Revenue from Covid-19 services, mostly PCR and antibody/antigen testing, amounted to €43.9m (€7.9m). A large proportion of the Covid-19 testing is contracted with and funded by health ministries or public health funds hence public paid funding grew by 57.6%. Private pay funding grew by 102.9% compared to prior year quarter as the BDP network was most impacted by the Covid-19 restrictions.

Due to the large swings in business activities in Q2 2020, comparison is more difficult, however looking at the trend in the table below over a longer period helps to illustrate the underlying situation in the current quarter.

The negative impact due to Covid-19 in Q2 2021 is not estimated, however is expected not to be significant. In the comparative quarter, the net reduction in revenue due to Covid-19 was reliably estimated to €20m.

€m	Q2 2021	Q2 2020	Q2 2019
Revenue underlying
business	124.8	82.7	97.6
Estimated reduction
due to Covid-19	-*	20	-
Total illustrative
underlying business	124.8	102.7	97.6
Year on year growth	20.8%	5.8%

* No estimate included due to inherent uncertainty.

Illustrative Euro year on year growth in the underlying business for Q2 2021 is estimated up to a minimum 20.8% despite the impact of negative exchange swings from the strength of the Euro. Acquired revenue amounted to €1.9m, which contributed 1.9% and foreign currency negative impacts are estimated to be -5.3% of this illustrative underlying growth.

The laboratory test volume increased by 58.3% to 32.5 million (20.5 million) including 1.1 million Covid-19 tests. Demand levels have recovered and the underlying volume is up 54.6%, of which part is normalisation due to the reduction in demand in the second quarter 2020 as a consequence of the Covid-19 outbreak. Underlying test volume over the 2-year period is up 21.0%.

At the end of the quarter, Diagnostic Services operated 779 BDPs with 23 new BDPs. Investment in infrastructure continues, as well as specific facilities and machinery to support certain customers. A new central lab is being constructed in Frankfurt Oder (Germany) which will increase capacity and allow for more automation. Medicover Genetics continues to expand its offering with its hub in Munich (Germany) now servicing customers from Europe. Laboratory testing and support services for clinical research continue to see strong demand.

Covid-19 testing in all markets has dropped from its peaks in late April/early May. However the likely prevalence of the Delta variant(s) over the autumn will generate continuing demand for Covid-19 testing and the low levels of vaccination in some markets will likely generate strong future Covid-19 waves.

Foreign exchange fluctuations had a negative impact of 8.1% year on year, with largest weakness for Ukraine and Belarus, followed by Romania.

REVENUE FIRST HALF 2021

Consolidated revenue amounted to €666.1m (€437.6m), up 52.2% with an organic growth of 56.4% out of which 27.0% was from the underlying business and 29.4% from Covid-19 services.

Revenue from the underlying business was €531.4m (€427.6m) and grew by 24.3%. Revenue from Covid-19 services amounted to €134.7m (€10.0m).

Due to the large swings in business activities in H1 2020, comparison is more difficult, however looking at the trend in the table below over a longer period helps to illustrate the underlying situation in the current half.

In the comparative period, the net reduction in revenue due to Covid-19 was reliably estimated to €67m.

€m	6M 2021	6M 2020	6M 2019
Revenue underlying business	531.4	427.6	402.6
Estimated reduction due to Covid-19	-*	67	-
Total illustrative underlying business	531.4	494.6	402.6
Year on year growth	7.5%	22.8%

* No estimate included due to inherent uncertainty.

Illustrative Euro year on year growth in the underlying business for H1 2021 is shown as 7.5% despite the impact of negative exchange swings from the strength of the Euro. It is estimated to be at a minimum 11.5% and may even be higher as the negative revenue impacts of Covid-19 for the current H1 cannot be reliably quantified. Acquired revenue amounted to €9.6m, which contributed 1.9% and foreign currency negative impacts are estimated to be -4.3% of this illustrative underlying growth.

Growth has resumed and continuing investments and new capacity is contributing. The Indian hospital business was consolidated fully in 2020 and contributed to the underlying growth along with growth of employment and the FFS business.

Foreign exchange fluctuations had a negative impact of 6.4% year on year, with largest weakness for India and Ukraine, while the Polish Zloty was slightly weaker.

Healthcare Services revenue reached €343.0m (€244.3m), up 40.4%, with an organic growth of 43.0% out of which 22.6% was from the underlying business and 20.4% from Covid-19 services.

Revenue from the underlying business was €294.9m (€243.2m) and grew by 21.3%. Revenue from Covid-19 services amounted to €48.1m (€1.1m).

Due to the large swings in business activities in H1 2020, comparison is more difficult, however looking at the trend in the table below over a longer period helps to illustrate the underlying situation in the current half.

In the comparative period, the net reduction in revenue due to Covid-19 was reliably estimated to €40m.

€m	6M 2021	6M 2020	6M 2019
Revenue underlying business	294.9	243.2	211.5
Estimated reduction due to Covid-19	-*	40	-
Total illustrative underlying business	294.9	283.2	211.5
Year on year growth	4.0%	34.0%

* No estimate included due to inherent uncertainty.

Illustrative Euro year on year growth in the underlying business for H1 2021 is shown as 4.0% despite the impact of negative exchange swings from the strength of the Euro. It is estimated to be at a minimum 11.1% and may even be higher as the negative revenue impacts of Covid-19 for the current H1 cannot be reliably quantified. Acquired revenue amounted to €7.5m, which contributed 2.6% and foreign currency negative impacts are estimated to be -3.8% of this illustrative underlying growth.

Foreign exchange fluctuations had a negative impact of 5.6% year on year, with largest weakness for India, while the Polish Zloty was slightly weaker.

Diagnostic Services revenue increased to €334.2m (€198.7m), up 68.2%, with an organic growth of 74.2% out of which 34.9% was from the underlying business and 39.3% from Covid-19 services.

Revenue from the underlying business was €247.6m (€189.8m) and grew by 30.4%. Revenue from Covid-19 services amounted to €86.6m (€8.9m).

Due to the large swings in business activities in H1 2020, comparison is more difficult, however looking at the trend in the table below over a longer period helps to illustrate the underlying situation in the current half.

In the comparative period, the net reduction in revenue due to Covid-19 was reliably estimated to €27m.

€m	6M 2021	6M 2020	6M 2019
Revenue underlying business	247.6	189.8	197.8
Estimated reduction due to Covid-19	-*	27	-
Total illustrative underlying business	247.6	216.8	197.8
Year on year growth	13.7%	10.1%

* No estimate included due to inherent uncertainty.

Illustrative Euro year on year growth in the underlying business for H1 2021 is estimated at a minimum 13.7%, despite the impact of negative exchange swings from the strength of the Euro. Acquired revenue amounted to €2.1m, which contributed 1.0% and foreign currency negative impacts are estimated to be -4.9% of this illustrative underlying growth.

Foreign exchange fluctuations had a negative impact of 7.1% year on year, with largest weakness for Ukraine and Belarus.

Revenue from external customers, recognised over time as services are rendered, by division, by payer and by country is disclosed in the following table.

€m	Q2 2021	Q2 2020	Growth	6M 2021	% of 6M 2021	6M 2020	% of 6M 2020	Growth
Healthcare Services
Revenue	185.7	110.5		343.0		244.3
Inter-segment revenue	-0.2	-0.2		-0.5		-0.3
Revenue from external
customers	185.5	110.3	68.2%	342.5		244.0		40.4%
By payer:
Public	18.3	12.1	52.4%	36.1	10.5%	26.1	10.7%	38.6%
Private	167.2	98.2	70.1%	306.4	89.5%	217.9	89.3%	40.6%
Funded	64.5	57.7	11.8%	126.8	37.0%	117.8	48.3%	7.6%
Fee-For-Service (FFS)	96.2	37.4	156.7%	168.0	49.0%	90.2	37.0%	86.2%
Other services	6.5	3.1	111.7%	11.6	3.5%	9.9	4.0%	18.4%
By country:
Poland	111.7	77.3	44.4%	213.6	62.4%	169.8	69.6%	25.8%
India	43.6	12.6	247.0%	69.7	20.3%	30.3	12.4%	129.8%
Romania	21.0	13.0	61.4%	41.5	12.1%	28.1	11.5%	47.6%
Other countries	9.2	7.4	24.6%	17.7	5.2%	15.8	6.5%	13.0%
Diagnostic Services
Revenue	168.7	90.6		334.2		198.7
Inter-segment revenue	-5.4	-2.2		-10.8		-5.3
Revenue from external
customers	163.3	88.4	84.7%	323.4		193.4		67.2%
By payer:
Public	52.5	33.3	57.6%	107.8	33.3%	69.6	36.0%	54.9%
Private	110.8	55.1	101.1%	215.6	66.7%	123.8	64.0%	74.0%
Fee-For-Service (FFS)	102.4	53.5	91.5%	202.9	62.8%	120.3	62.2%	68.6%
Other services	8.4	1.6	422.5%	12.7	3.9%	3.5	1.8%	260.3%
By country:
Germany	79.2	51.1	55.1%	160.5	49.7%	104.1	53.8%	54.2%
Ukraine	26.5	12.3	116.3%	51.5	15.9%	29.9	15.4%	72.3%
Romania	21.4	11.2	89.9%	44.0	13.6%	26.4	13.7%	66.6%
Poland	16.5	6.9	138.5%	31.2	9.6%	15.9	8.2%	96.3%
Other countries	19.7	6.9	187.4%	36.2	11.2%	17.1	8.9%	110.8%

PROFIT DEVELOPMENT SECOND QUARTER 2021

Operating profit (EBIT) was €46.2m (€-2.3m), an operating margin of 13.3% (-1.2%), increased by the impact of Covid-19. EBIT for the underlying business was €16.0m (€-5.1m), an operating margin of 6.0% (-2.7%). The strong financial performance was a result of the resilient level of demand for Medicover's services. The contribution from Covid-19 revenue with certain facilities operating at high utilisation/occupancy in the quarter has resulted in higher margins. While the virus infection rates abate as it was the case in India during the month of June, some of those facilities are transitioning back to business as usual.

Net profit amounted to €33.5m (€-8.5m), which represented a margin of 9.6% (-4.3%). Net profit was impacted by a total financial result of €-1.3m (€-3.9m) of which €-4.1m (€-4.9m) was related to interest expense and commitment fees on the Group's debt and other discounted liabilities. Within the interest expense €-3.2m (€-2.5m) was related to lease liabilities. As the Group has expanded its activities, including its leased premises, the cost of interest allocated to lease liabilities has increased. Foreign exchange gains were €2.6m (€0.6m) of which €2.0m (€1.0m) was related to Euro denominated lease liabilities in Poland as the zloty strengthened over the quarter.

Basic/diluted earnings per share amounted to €0.203 (loss €-0.056).

Consolidated EBITDA was €71.8m (€25.3m), an EBITDA margin of 20.6% (12.7%).

EBITDA for the underlying business grew by 82.2% to €40.9m (€22.4m), a margin of 15.3% (11.8%). The EBITDA margin for the underlying business was 3.5pp higher reflecting an overall improvement driven by increased efficiencies, contribution flow through on incremental volume and contribution from expansion investments. Adjusted EBITDA was €74.1m (€26.1m) a margin of 21.2% (13.1%).

Adjusted EBITDAaL increased to €60.5m (€13.2m), a margin of 17.4% (6.6%) driving the strong cash flows over the quarter.

Items affecting comparability

The contribution from Covid-19 revenue was estimated at an average of 37.8% EBITDA margin, which increased the overall EBITDA margin by approximately 5.3pp, corresponding to €30.9m (€2.9m).

In Q2 2020, there was a significant negative impact on the Group's operating performance due to Covid-19. This increased the comparative growth of the underlying business. Given the marginal contribution dynamics of the Diagnostic Services business, the impact on profit was larger than for the Healthcare Services business, which was more insulated from the negative impact on profit. In Q2 2020, temporary salary reductions (voluntary, furlough and government support) were €12.0m, reductions in property lease costs were €1.2m and other cost actions amounted to €3.1m for a total of €16.3m.

A non-cash impairment charge of €-2.4m was incurred in Q2 2020.

Acquisition related expenses were €-0.9m (€-0.1m).

EBITDA for Healthcare Services was €33.4m (€18.4m), an EBITDA margin of 18.0% (16.7%).

EBITDA for the underlying business grew by 19.7% to €21.4m (€17.8m), an EBITDA margin of 14.5% (16.4%), 1.9pp lower. Due to the cost reduction actions in Q2 2020 it is difficult to make a comparison to the underlying business. Salary related reductions (voluntary, furlough and government support) in Q2 2020 were €5.8m and lease concessions were €0.6m corresponding to 5.9% of Q2 2020 margin, adjusting for this in the comparatives shows a 4.0pp improvement. This is

despite certain parts of the business still being affected negatively from Covid-19 restrictions in Q2 2021.

The contribution from Covid-19 services was estimated to €12.0m or 3.5pp of margin. EBITDAaL was €25.4m (€11.7m), a margin of 13.7% (10.6%).

Operating profit amounted to €18.6m (€2.2m), a margin of 10.0% (2.0%).

The employer paid services have performed consistently well throughout the period, with adoption of digital health being an ongoing feature in patient treatment selections.

The inpatient business in Europe has been providing Covid-19 admissions under government funding, however in some cases this squeezed out more profitable elective services, nevertheless was necessary to support society.

Maternity services continued largely uninterrupted however some women and children services, particularly outpatient were impacted.

Dental services in Poland have performed well, with a mixture of recovered general demand including some delayed treatment, employer paid benefit packages and an increase in number of facilities. The impact in the comparative quarter was characterised by many facilities operating at substantially lower levels or emergency only levels.

Fertility services were significantly negatively impacted in India with very low levels of service, with a recovery starting in June 2021, generating an overall loss in the quarter. In Poland and Ukraine activity continued, whereby Poland was the least impacted.

MHI was strongly supported by Covid-19 admissions with strong cash flows and profit contributions. During June this reversed as Covid-19 related admissions fell sharply and facilities were reorientated back to underlying business. Admissions were lower than on a normalised basis as this re-orientation process will take a period of time for patients to feed through and gain confidence to seek treatment. New facilities are concentrating on building their doctor staff and referral base.

Medicover Sport was impacted very negatively with losses or at best breakeven performance at unit level. With the lifting of restrictions in early June in Poland the performance started to pick up with resumption of services and a return of demand.

EBITDA for Diagnostic Services was €43.4m (€9.7m), an EBITDA margin of 25.7% (10.6%).

EBITDA for the underlying business grew by more than 3-fold to €24.5m (€7.4m), a margin of 19.6% (8.8%), 10.8pp higher, corresponding to €17.2m. This reflects the pickup in demand levels for underlying test volume, which increased by 54.6%. Salary related reductions (voluntary, furlough and government support) in Q2 2020 were €5.5m and lease concessions were €0.6m corresponding to 7.3% of Q2 2020 margin. The contribution from Covid-19 services in Q2 2021 was estimated to €18.9m or 6.1pp of margin. EBITDAaL was €37.9m (€3.6m), a margin of 22.5% (4.0%).

Operating profit was €33.0m (€-1.3m), a margin of 19.6% (-1.5%).

Demand for Covid-19 testing, both PCR and antigen, has been robust with a high-level during April into May; from the end of May and throughout June a progressive reduction in demand was observed following general reductions within infection levels in the population. The strongest performance of the major businesses was from the German entities.

Covid-19 testing is expected to continue for some time due to the increasing rates of prevalence and infection rates of the Delta variant(s). Covid-19 genetic sequencing to monitor variants is a new supplementary revenue source, as is airport/travel testing and specific services for sectors such as cruise liners.

In the beginning of the comparative Q2 2020, there was a fall-off in underlying business across all markets except Germany which impacted the comparative performance. The early negative impact in the pandemic was more weighted to markets focused on a BDP strategy.

PROFIT DEVELOPMENT FIRST HALF 2021

Operating profit (EBIT) was €87.8m (€4.1m) with an operating margin of 13.2% (0.9%), increased by the impact of Covid-19. EBIT for the underlying business was €41.4m (€1.0m), an operating margin of 7.8% (0.2%).

Net profit amounted to €59.8m (€-11.0m), a margin of 9.0% (-2.5%). Net profit was impacted by a total financial result of €-6.6m (€-13.8m) of which €-8.3m (€-10.5m) was related to interest expense and €1.4m (€-3.9m) to foreign exchange gains.

Basic/diluted earnings per share amounted to €0.377 (loss €-0.062).

Consolidated EBITDA was €137.3m (€54.3m) with an EBITDA margin of 20.6% (12.4%).

EBITDA for the underlying business amounted to €89.8m (€51.0m), a margin of 16.9% (12.0%), a 4.9pp higher margin corresponding to €38.8m. Adjusted EBITDA was €141.0m (€56.4m), a margin of 21.2% (12.9%). Adjusted EBITDAaL increased to €114.8m (€31.3m), a margin of 17.2% (7.2%).

Items affecting comparability

The contribution from Covid-19 revenue was estimated at an average of 35.3% EBITDA margin, which increased the overall EBITDA margin by approximately 3.7pp, corresponding to €47.5m (€3.3m).

In the first half 2020, there was a significant negative impact on the Group's operating performance due to Covid-19. This has increased the comparative growth of the underlying business. In H1 2020, temporary salary reductions (voluntary, furlough and government support) were €12.0m, reductions in property lease costs were €1.2m and other cost actions amounted to €3.1m for a total of €16.3m.

A non-cash impairment charge of €-4.9m was incurred in the comparative period.

Acquisition related expenses amounted to €-1.1m (€-0.7m).

EBITDA for Healthcare Services increased by 69.7% to €55.9m (€32.9m), an EBITDA margin of 16.3% (13.5%).

EBITDA for the underlying business grew by 31.2% to €42.5m (€32.3m), a margin of 14.4% (13.3%), a 1.1pp higher margin, corresponding to €10.2m. Salary related reductions (voluntary, furlough and government support) in H1 2020 were €5.8m and lease concessions were €0.6m corresponding to 2.6% of H1 2020 margin, adjusting for this in the comparatives shows a 3.7pp improvement. The contribution from Covid-19 services was estimated to €13.4m or 1.9pp of margin. EBITDAaL increased by 108.1% to €40.8m (€19.6m), a margin of 11.9% (8.0%).

Operating profit amounted to €27.4m (€3.5m), a margin of 8.0% (1.5%).

EBITDA for Diagnostic Services increased by 214.0% to €90.7m (€28.9m), an EBITDA margin of 27.1% (14.5%).

EBITDA for the underlying business grew by 115.6% to €56.6m (€26.2m), a margin of 22.8% (13.8%), a 9.0pp higher margin, corresponding to €30.4m. Salary related reductions (voluntary, furlough and government support) in H1 2020 were €5.5m and lease concessions were €0.6m corresponding to 3.2% of H1 2020 margin. The contribution from Covid-19 services in H1 2021 was estimated to €34.1m or 4.3pp of margin. EBITDAaL amounted to €79.8m (€17.3m), a margin of 23.9% (8.7%).

Operating profit amounted to €70.5m (€8.9m), a margin of 21.1% (4.5%).

KEY FINANCIAL DATA

Medicover, €m	Apr-Jun 2021	Apr-Jun 2020	Growth	Jan-Jun 2021	Jan-Jun 2020	Growth	FY 2020
Revenue	348.9	198.8	76%	666.1	437.6	52%	997.8
Operating profit (EBIT)	46.2	-2.3	2,114%	87.8	4.1	2,043%	61.3
Operating profit margin	13.3%	-1.2%		13.2%	0.9%		6.1%
Net profit	33.5	-8.5	491%	59.8	-11.0	640%	27.3
Net profit margin	9.6%	-4.3%		9.0%	-2.5%		2.7%
Basic/diluted earnings/(loss) per
share, €	0.203	-0.056	463%	0.377	-0.062	708%	0.182
EBITDA	71.8	25.3	184%	137.3	54.3	153%	157.5
EBITDA margin	20.6%	12.7%		20.6%	12.4%		15.8%
Adjusted EBITDA	74.1	26.1	185%	141.0	56.4	150%	164.1
Adjusted EBITDA margin	21.2%	13.1%		21.2%	12.9%		16.4%
EBITDAaL	58.2	12.4	368%	111.1	29.2	280%	108.5
EBITDAaL margin	16.7%	6.3%		16.7%	6.7%		10.9%
Adjusted EBITDAaL	60.5	13.2	359%	114.8	31.3	267%	115.1
Adjusted EBITDAaL margin	17.4%	6.6%		17.2%	7.2%		11.5%
EBITA	48.6	5.2	838%	92.7	14.1	559%	76.9
EBITA margin	13.9%	2.6%		13.9%	3.2%		7.7%
Adjusted EBITA	50.9	6.0	758%	96.4	16.2	497%	83.5
Adjusted EBITA margin	14.6%	3.0%		14.5%	3.7%		8.4%
EBITAaL	45.4	2.7	1,610%	86.7	9.1	858%	66.7
EBITAaL margin	13.0%	1.3%		13.0%	2.1%		6.7%
Adjusted EBITAaL	47.7	3.5	1,303%	90.4	11.2	713%	73.3
Adjusted EBITAaL margin	13.7%	1.7%		13.6%	2.5%		7.3%
	Apr-Jun	Apr-Jun		Jan-Jun	Jan-Jun		FY
Healthcare Services, €m	2021	2020	Growth	2021	2020	Growth	2020
Revenue	185.7	110.5	68%	343.0	244.3	40%	539.7
Operating profit (EBIT)	18.6	2.2	722%	27.4	3.5	667%	28.8
Operating profit margin	10.0%	2.0%		8.0%	1.5%		5.3%
EBITDA	33.4	18.4	81%	55.9	32.9	70%	84.1
EBITDA margin	18.0%	16.7%		16.3%	13.5%		15.6%
EBITDAaL	25.4	11.7	117%	40.8	19.6	108%	57.5
EBITDAaL margin	13.7%	10.6%		11.9%	8.0%		10.6%
EBITA	20.4	7.3	183%	31.2	10.5	198%	39.8
EBITA margin	11.0%	6.5%		9.1%	4.3%		7.4%
Members (period end) (000's)	1,419	1,293	10%	1,419	1,293	10%	1,353
	Apr-Jun	Apr-Jun		Jan-Jun	Jan-Jun		FY
Diagnostic Services, €m	2021	2020	Growth	2021	2020	Growth	2020
Revenue	168.7	90.6	86%	334.2	198.7	68%	473.4
Operating profit (EBIT)	33.0	-1.3	2,542%	70.5	8.9	692%	50.8
Operating profit margin	19.6%	-1.5%		21.1%	4.5%		10.7%
EBITDA	43.4	9.7	350%	90.7	28.9	214%	89.8
EBITDA margin	25.7%	10.6%		27.1%	14.5%		19.0%
EBITDAaL	37.9	3.6	958%	79.8	17.3	360%	67.8
EBITDAaL margin	22.5%	4.0%		23.9%	8.7%		14.3%
EBITA	33.5	1.2	2,720%	71.5	12.0	496%	55.4
EBITA margin	19.9%	1.3%		21.4%	6.0%		11.7%
Lab tests (period volume) (m)	32.5	20.5	58%	65.1	47.4	37%	103.9

COVID-19

	Q2	Q1	6M	Q4	Q3	Q2	Q1	FY
€m	2021	2021	2021	2020	2020	2020	2020	2020
Covid-19 revenue
Healthcare Services	37.9	10.2	48.1	11.2	16.0	1.1	0.0	28.3
Diagnostic Services	43.9	42.7	86.6	41.2	16.0	7.9	1.0	66.1
Total	81.8	52.9	134.7	52.4	32.0	9.0	1.0	94.4
EBITDA
Healthcare Services	12.0	1.4	13.4	1.9	6.4	0.6	0.0	8.9
Diagnostic Services	18.9	15.2	34.1	12.4	6.1	2.3	0.4	21.2
Total	30.9	16.6	47.5	14.3	12.5	2.9	0.4	30.1
EBITDA margin
Healthcare Services	31.7%	13.2%	27.8%	17.0%	40.1%	48.0%	-	31.3%
Diagnostic Services	43.0%	35.7%	39.4%	30.1%	38.2%	29.7%	32.0%	32.1%
Total	37.8%	31.4%	35.3%	27.3%	39.2%	31.9%	32.0%	31.8%

The following table presents Covid-19 revenue and estimated Covid-19 EBITDA and margin.

The pandemic that has swept the world has led to unprecedented restrictions and changes to normal life. Although vaccines are now being administered and currently restrictions are being removed, the effects are likely to continue for some time. As the Delta variant(s) become the major established strains across the world it is expected that testing demand will increase particularly in those markets with poor vaccine uptake. The Delta variants appear to be considerably more contagious, however they do not seem to have evaded the current vaccines.

Due to the Delta variants, there is an expectation that restrictions may be required again towards the autumn. This could have an adverse impact upon some of the Group's services and demand.

Healthcare demand has been impacted with patients deferring to seek diagnosis and treatment for fear of being infected. This is particularly so for the more vulnerable sections of the population, however this may be reducing as these people are targeted for vaccination. Medicover has been positioned to assist with testing for the virus, providing vaccinations and treating patients,

including the most severely impacted in its clinics, wards and ICU facilities. Medicover's Indian facilities have contracted for 1.2 million doses of vaccines to be administered to customers. This activity is not profit generating and is performed as a service to society and Medicover customers.

Medicover's staff has been highly supportive of patients and the Group throughout this crisis. They have continued to work on frontline positions, whilst being concerned for themselves and families. Vaccination of frontline staff has continued and all who want to have been vaccinated. MHI's experience in India has shown that vaccination is effective for the Delta variant with no deaths or serious illness among vaccinated staff.

Medicover has a strong degree of confidence in the continuing performance of the economies in its operating countries despite the effects of the pandemic. Medicover has invested to increase its ability to provide Covid-19 testing. The Group has been able for selected customers to provide bespoke testing capability for their industry from retail to cruise industry, airlines and airports.

CASH FLOW

Second quarter

Cash generated from operations before working capital changes and tax payments amounted to €73.9m (€27.3m), being 103.1% of EBITDA (108.2%). Net working capital increased by €29.4m (decreased by €13.6m). Income tax paid was €6.4m (€2.6m). Net cash from operating activities was a strong €38.1m (€38.3m). Covid-19 services have supported the strong cash flows.

Investments in property, plant and equipment and intangible assets amounted to €23.3m (€11.2m) with approximately 69% being growth capital investment and 31% being maintenance investment. Direct Covid-19 related investments amounted to €2.8m. Cash flow from acquisitions of subsidiaries amounted to €13.6m (€1.9m) relating to payments for earlier closed transactions and business combinations during the quarter.

A dividend of €10.4m (-) was distributed to shareholders. Net loans drawn amounted to €23.5m (net loans repaid €92.5m). Leases repaid were €8.6m (€6.9m). Interest paid amounted to €4.5m (€5.0m), of which €3.2m (€2.5m) related to lease liabilities.

Cash and cash equivalents increased by €11.8m to €77.9m.

First half

Cash generated from operations before working capital changes and tax payments amounted to €139.4m (€58.5m), being 101.6% of EBITDA (107.6%). Net working capital increased by €34.6m (decreased by €22.3m). Income tax paid was €9.0m (€5.9m). Net cash from operating activities was €95.8m (€74.9m).

Investments in property, plant and equipment and intangible assets amounted to €42.7m (€30.6m) with approximately 60% being growth capital investment and 40% being maintenance investment. Direct Covid-19 related investments amounted to €4.3m. Cash flow from acquisitions of subsidiaries and associates amounted to €16.1m (€2.9m) relating to payments for earlier closed transactions and business combinations for the first half.

Net loans drawn amounted to €17.1m (net loans repaid €68.5m). Leases repaid were €17.4m (€14.9m). Interest paid amounted to €7.8m (€8.5m), of which €6.0m (€5.0m) related to lease liabilities.

Cash and cash equivalents increased by €30.7m to €77.9m.

FINANCIAL POSITION

Consolidated equity as at 30 June 2021 amounted to €540.7m (€483.5m). The increase in equity includes a positive movement of €7.9m on translation reserves mostly relating to Poland, Ukraine and India as those currencies strengthened compared to year-end 2020.

Inventories amounted to €55.1m (€53.0m), of which approximately €10.2m (€11.2m) is related to Covid-19 services and contracts.

Loans payable amounted to €187.3m (€167.9m) and lease liabilities to €243.8m (€199.5m). The total financial debt was €431.1m (€367.4m). Loans payable net of cash and liquid short-term investments amounted to €84.3m (€81.1m)

reflecting the strong operating cash flows as well as acquisitions and capital investment. The ratio of loans payable net of cash and liquid short-term investments to adjusted EBITDAaL for the prior twelve months was 0.4x (0.7x level at year-end 2020).

The increase in lease liabilities by €44.3m reflected the expansion of facilities leased in Poland and India. The Group has undrawn committed credit facilities of €220m, liquid short-term investments and cash and cash equivalents, in total €323m (€307m) at the end of the quarter and is well positioned to support future organic and acquisition growth.

TAX

The Group has recognised an income tax charge of €-22.1m (€-1.3m) for the first half.

PARENT COMPANY

There was no significant revenue. The loss for the first half amounted to €-4.8m (€-4.0m). The parent company's assets consist of investments in

The effective tax rate is estimated at 27.0% (13.8%).

subsidiaries. Equity as at 30 June 2021 was €599.1m (€611.9m).

RISK FACTORS

The Group's business is exposed to risks that could impact its operations, performance or financial position. These comprise operational risks such as market risk, political risk, legislation and regulation risk, medical risk, insurance risk, reputational risk and technology risk. External risks consist of risks relating to a pandemic, availability to recruit and retain qualified and well-educated staff, dependence on information systems, risks relating to permits, property and acquisition execution. In addition the Group is exposed to financial risks, such as foreign currency risk, credit risk, interest rate risk, liquidity and financing risk. Management

of these risks is a key issue for Medicover to execute its strategy and reach financial targets. Medicover sets out to manage those risks that are controllable, through identification, assessment and controls and for those that are not controllable to monitor and mitigate as reasonable possible.

Risk factors and uncertainties of relevance to the Group including the current pandemic are described in the annual report 2020, section 'Risk and risk management' (pages 51-56). No additional risk factors have been identified during the first half 2021.

The board of directors and the CEO declare that the interim report for January-June 2021 gives a fair overview of the parent company´s and Group´s operations, financial position and results of operations and describes significant risks and uncertainties facing the parent company and companies included in the Group.

Stockholm on 23 July 2021

Fredrik Stenmo Chairman of the board

Peder af Jochnick Robert af Jochnick Arno Bohn Board member Board member Board member

Board member Board member Board member

Sonali Chandmal Michael Flemming Margareta Nordenvall

Fredrik Rågmark CEO and board member

This interim report has not been subject to review by the Company's auditor.

This is information that Medicover AB 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 below at 7.45 (CEST) on 23 July 2021. This interim report and other information about Medicover is available at medicover.com.

Financial Calendar Interim report July-September 2021 3 November 2021

For further information, please contact: Hanna Bjellquist, Head of Investor Relations Phone: +46 70 303 32 72

E-mail: hanna.bjellquist@medicover.com

Conference call: A conference call for analysts and investors will be held today at 09.30 CEST. To listen in please register here. To ask questions please dial in and use code: 2561816 SE: 08-566 184 67 DE: +49 (0) 305 200 2085 UK: +44 (0) 2071 928 338 US: +1 646 741 3167

Address

Org nr: 559073-9487 Medicover AB (publ) P.O. Box 5283, SE-102 46 Stockholm Visiting address: Riddargatan 12A, SE-114 35 Stockholm, Sweden Phone: +46 8 400 17 600

This report may contain certain forward-looking statements and opinions. Forward-looking statements are statements that do not relate to historical facts and events and such statements and opinions pertaining to the future. Forward-looking statements are based on current estimates and assumptions made according to the best of Medicover's knowledge. Such forward-looking statements are subject to risks, uncertainties, and other factors that could cause the actual results, including Medicover's cash flow, financial position and results of operations, to differ materially from the results, or fail to meet expectations expressly or implicitly assumed or described in those statements or to turn out to be less favourable than the results expressly or implicitly assumed or described in those statements.

In light of the risks, uncertainties and assumptions associated with forward-looking statements, it is possible that the future events mentioned in this presentation may not occur. Actual results, performance or events may differ materially from those in such statements due to, without limitation, changes in general economic conditions, in particular economic conditions in the markets on which Medicover operates, changes affecting interest rate levels, changes affecting currency exchange rates, changes in competition levels, changes in laws and regulations, and occurrence of accidents or environmental damages.

The information, opinions and forward-looking statements contained in this announcement speak only as at its date and are subject to change without notice.

CONDENSED FINANCIAL STATEMENTS

CONSOLIDATED INCOME STATEMENT

€m	Apr-Jun 2021	Apr-Jun 2020	Jan-Jun 2021	Jan-Jun 2020	Jan-Dec 2020
Revenue	348.9	198.8	666.1	437.6	997.8
Operating expenses
Medical provision costs	-245.4	-150.4	-465.9	-329.6	-734.3
Gross profit	103.5	48.4	200.2	108.0	263.5
Distribution, selling and marketing costs	-15.0	-8.5	-28.9	-21.3	-43.3
Administrative costs	-42.3	-42.2	-83.5	-82.6	-158.9
Operating profit (EBIT)	46.2	-2.3	87.8	4.1	61.3
Other income/(costs)	0.2	-0.1	0.1	-0.1	1.5
Interest income	0.2	0.4	0.3	0.6	0.9
Interest expense	-4.1	-4.9	-8.3	-10.5	-18.1
Other financial income/(expense)	2.6	0.6	1.4	-3.9	-8.4
Total financial result	-1.3	-3.9	-6.6	-13.8	-25.6
Share of profit of associates	0.3	0.1	0.6	0.1	0.1
Profit/(loss) before income tax	45.4	-6.2	81.9	-9.7	37.3
Income tax	-11.9	-2.3	-22.1	-1.3	-10.0
Profit/(loss) for the period	33.5	-8.5	59.8	-11.0	27.3
Profit/(loss) attributable to:
Owners of the parent	30.2	-7.6	56.0	-8.4	25.8
Non-controlling interests	3.3	-0.9	3.8	-2.6	1.5
Profit/(loss) for the period	33.5	-8.5	59.8	-11.0	27.3
Earnings/(loss) per share attributable to owners of the parent:
Basic/diluted, €	0.203	-0.056	0.377	-0.062	0.182

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

€m	Apr-Jun 2021	Apr-Jun 2020	Jan-Jun 2021	Jan-Jun 2020	Jan-Dec 2020
Profit/(loss) for the period	33.5	-8.5	59.8	-11.0	27.3
Other comprehensive income/(loss):
Items that may be reclassified subsequently to income statement:
Exchange differences on translating foreign
operations	4.6	3.1	7.9	-17.1	-40.5
Income tax relating to these items	-0.2	-0.3	-0.4	0.2	0.4
Other comprehensive income/(loss) for the
period, net of tax	4.4	2.8	7.5	-16.9	-40.1
Total comprehensive income/(loss) for the
period	37.9	-5.7	67.3	-27.9	-12.8
Total comprehensive income/(loss) attributable to:
Owners of the parent	35.8	-4.4	63.1	-24.3	-9.2
Non-controlling interests	2.1	-1.3	4.2	-3.6	-3.6
Total comprehensive income/(loss) for the
period	37.9	-5.7	67.3	-27.9	-12.8

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

€m	30 Jun 2021	30 Jun 2020	31 Dec 2020
ASSETS
Non-current assets
Goodwill	304.5	291.7	289.2
Other intangible assets	62.6	68.4	64.6
Property, plant and equipment	286.5	242.9	257.9
Right-of-use assets	223.8	170.3	180.4
Deferred tax assets	13.9	10.8	12.1
Investment in associates	8.2	0.7	7.6
Other financial assets	13.9	9.8	9.9
Total non-current assets	913.4	794.6	821.7
Current assets
Inventories	55.1	35.7	53.0
Other financial assets	0.0	0.0	0.0
Trade and other receivables	171.4	124.0	149.4
Short-term investments	25.1	50.0	40.1
Cash and cash equivalents	77.9	74.0	46.7
Total current assets	329.5	283.7	289.2
Total assets	1,242.9	1,078.3	1,110.9
EQUITY
Equity attributable to owners of the parent	500.9	435.9	448.0
Non-controlling interests	39.8	37.7	35.5
Total equity	540.7	473.6	483.5
LIABILITIES
Non–current liabilities
Loans payable	161.2	147.4	152.8
Lease liabilities	205.2	146.8	165.1
Deferred tax liabilities	33.5	30.5	30.0
Provisions	2.2	2.1	1.9
Other financial liabilities	47.4	39.2	45.9
Other liabilities	3.8	4.0	3.4
Total non-current liabilities	453.3	370.0	399.1
Current liabilities
Loans payable	26.1	54.7	15.1
Lease liabilities	38.6	39.7	34.4
Unearned premiums/deferred revenue	15.4	11.8	14.8
Corporate tax payable	20.6	3.6	7.8
Other financial liabilities	4.6	5.7	6.8
Trade and other payables	143.6	119.2	149.4
Total current liabilities	248.9	234.7	228.3
Total liabilities	702.2	604.7	627.4
Total equity and liabilities	1,242.9	1,078.3	1,110.9

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

								Total equity
	Share	Treasury	Share	Retained	Non-controlling interests put	Other	Translation	attributable to owners of	Non controlling	Total
€m	capital	shares	premium	earnings	option reserve	reserves	reserve	the parent	interests	equity
Opening balance as at 1 January 2020	27.1	-0.4	319.7	25.0	-38.1	4.3	-20.2	317.4	42.3	359.7
Profit/(loss) for the period	-	-	-	-8.4	-	-	-	-8.4	-2.6	-11.0
Other comprehensive income/(loss)	-	-	-	-	-	-	-15.9	-15.9	-1.0	-16.9
Total comprehensive income/(loss) for the period	-	-	-	-8.4	-	-	-15.9	-24.3	-3.6	-27.9
Transactions with owners in their capacity as owners:
Issue of ordinary shares	3.0	-	140.0	-	-	-	-	143.0	-	143.0
Transaction costs	-	-	-1.1	-	-	-	-	-1.1	-	-1.1
Changes in interest in subsidiaries	-	-	-	-0.1	-	-	-	-0.1	0.3	0.2
Changes in put option and liquidity obligation with non
controlling interests	-	-	-	-	-0.3	-	-	-0.3	-1.3	-1.6
Share-based payments	-	-	-	-	-	1.3	-	1.3	-	1.3
Total transactions with owners in their capacity as owners	3.0	-	138.9	-0.1	-0.3	1.3	-	142.8	-1.0	141.8
Closing balance as at 30 June 2020	30.1	-0.4	458.6	16.5	-38.4	5.6	-36.1	435.9	37.7	473.6
Opening balance as at 1 January 2021	30.1	-0.4	458.7	50.9	-45.1	8.9	-55.1	448.0	35.5	483.5
Profit for the period	-	-	-	56.0	-	-	-	56.0	3.8	59.8
Other comprehensive income/(loss)	-	-	-	-	-	-	7.1	7.1	0.4	7.5
Total comprehensive income/(loss) for the period	-	-	-	56.0	-	-	7.1	63.1	4.2	67.3
Transactions with owners in their capacity as owners:
Business combinations	-	-	-	-	-	-	-	-	0.1	0.1
Changes in interest in subsidiaries	-	-	-	-0.7	-	-	-	-0.7	0,0	-0.7
Share capital increase in non-controlling interests	-	-	-	-	-	-	-	-	1.7	1.7
Changes in put option and liquidity obligation with non controlling interests	-	-	-	-	-1.5	-	-	-1.5	-1.7	-3.2
Dividend	-	-	-	-10.4	-	-	-	-10.4	-	-10.4
Share-based payments	-	-	-	-	-	2.4	-	2.4	-	2.4
Total transactions with owners in their capacity as
owners	-	-	-	-11.1	-1.5	2.4	-	-10.2	0.1	-10.1
Closing balance as at 30 June 2021	30.1	-0.4	458.7	95.8	-46.6	11.3	-48.0	500.9	39.8	540.7

CONSOLIDATED CASH FLOW STATEMENT

€m	Apr-Jun 2021	Apr-Jun 2020	Jan-Jun 2021	Jan-Jun 2020	Jan-Dec 2020
Profit/(loss) before income tax	45.4	-6.2	81.9	-9.7	37.3
Adjustments for:
Depreciation, amortisation and impairment	25.6	27.6	49.5	50.2	96.2
Share-based payments	1.3	0.6	2.4	1.3	4.7
Net interest expense	3.8	4.5	7.9	9.9	17.2
Unrealised foreign exchange (gain)/loss	-2.8	-0.9	-1.9	3.5	7.0
Other non-cash transactions	0.6	1.7	-0.4	3.3	5.3
Cash generated from operations before working
capital changes and tax payments	73.9	27.3	139.4	58.5	167.7
Changes in operating assets and liabilities:
(Increase)/decrease in inventories	-2.1	3.2	-1.4	-0.7	-22.0
(Increase)/decrease in trade and other receivables	-8.2	-1.2	-20.0	7.3	-28.4
Increase/(decrease) in trade and other payables	-19.1	11.6	-13.2	15.7	49.7
Cash generated from operations before tax
payments	44.5	40.9	104.8	80.8	167.0
Income tax paid	-6.4	-2.6	-9.0	-5.9	-11.0
Net cash from operating activities	38.1	38.3	95.8	74.9	156.0
Investing activities:
Payment for acquisition of intangible assets and
property, plant and equipment	-23.3	-11.2	-42.7	-30.6	-72.5
Proceeds from disposal of intangible assets and property, plant and equipment	0.4	0.7	0.4	0.7	0.9
Payment for acquiring interest in associates	-	-	-	-	-1.4
Dividends received from associates	0.0	0.1	0.0	0.1	0.3
Payment for other financial assets	0.9	-	0.0	-0.1	-3.1
Payment for acquisition of subsidiaries, net of cash
acquired	-13.6	-1.9	-16.1	-2.9	-12.2
Repayment of loans granted	0.0	0.1	0.0	0.1	0.1
Payment of loans granted	-0.6	-	-0.6	-	-0.2
Payment for short-term investments	-	-50.0	-	-50.0	-50.0
Proceeds from short-term investments	10.0	-	15.0	-	10.9
Interest received	0.2	0.4	0.3	0.6	0.9
Net cash used in investing activities	-26.0	-61.8	-43.7	-82.1	-126.3
Financing activities:
Issue of shares, net of transaction costs	-	141.9	-	141.9	141.9
Acquisition of non-controlling interests	-0.6	-	-0.7	-	-1.2
Repayment of loans	-0.9	-122.5	-8.5	-225.9	-287.8
Proceeds from loans received	24.4	30.0	25.6	157.4	181.4
Repayment of leases	-8.6	-6.9	-17.4	-14.9	-31.4
Interest paid	-4.5	-5.0	-7.8	-8.5	-15.8
Dividend paid	-10.4	-	-10.4	-	-
Distribution to non-controlling interests	0.0	-0.3	-3.9	-0.7	-1.2
Proceeds from non-controlling interests	0.3	-	1.7	-	-
Net cash from/(used in) financing activities	-0.3	37.2	-21.4	49.3	-14.1
Total cash flow	11.8	13.7	30.7	42.1	15.6
Cash and cash equivalents
Cash balance as at beginning of the period	65.9	60.0	46.7	34.8	34.8
Net effects of exchange gain/(loss) on cash balances	0.2	0.3	0.5	-2.9	-3.7
Cash balance as at end of the period	77.9	74.0	77.9	74.0	46.7
Increase in cash and cash equivalents	11.8	13.7	30.7	42.1	15.6

PARENT COMPANY INCOME STATEMENT

€m	Apr-Jun 2021	Apr-Jun 2020	Jan-Jun 2021	Jan-Jun 2020	Jan-Dec 2020
Revenue	0.1	0.2	0.2	0.4	0.7
Operating expenses	-2.6	-2.3	-5.0	-4.0	-9.7
Operating loss	-2.5	-2.1	-4.8	-3.6	-9.0
Income from participation in group companies	-	-	-	-	11.5
Interest expense	0.0	-0.2	0.0	-0.4	-0.4
Profit/(loss) before income tax	-2.5	-2.3	-4.8	-4.0	2.1
Income tax	-	-	-	-	-
Profit/(loss) for the period	-2.5	-2.3	-4.8	-4.0	2.1

As the loss for the period corresponds with the amount in total comprehensive income, no separate statement of comprehensive income is presented.

PARENT COMPANY BALANCE SHEET

€m	30 Jun 2021	30 Jun 2020	31 Dec 2020
Property, plant and equipment	0.0	0.0	0.0
Investments in subsidiaries	434.8	434.8	434.8
Total non-current assets	434.8	434.8	434.8
Current receivables	166.3	204.0	179.3
Cash and bank	-	-	-
Total current assets	166.3	204.0	179.3
Total assets	601.1	638.8	614.1
Restricted equity	30.1	30.1	30.1
Non-restricted equity	569.0	572.4	581.8
Total equity	599.1	602.5	611.9
Current liabilities	2.0	36.3	2.2
Total liabilities	2.0	36.3	2.2
Total equity and liabilities	601.1	638.8	614.1

NOTES

1. Basis of preparation and accounting policies

Basis of preparation

Medicover AB (publ) ("the Company") together with its subsidiaries are referred to as "the Group". Medicover AB (publ) is a company domiciled in Sweden, with its head office in Stockholm. The functional currency of the Company and the Group's presentation currency is the Euro.

This interim report has been prepared in accordance with IAS 34 Interim Financial Reporting and should be read together with the Group's consolidated financial statements 2020.

The report does not include all disclosures that would otherwise be required in a complete set of financial statements.

Information on pages 1-18 is an integral part of this report.

Accounting policies, use of estimates and judgements

The Group applies the International Financial Reporting Standards (IFRS) as adopted by the European Union. The accounting policies and methods of computation applied in this report are the same as those applied by the Group in its consolidated financial statements 2020. Some amendments to existing standards became applicable as from 1 January 2021, however none of these have a material impact on the consolidated financial statements or accounting policies.

The Group obtained control over Medicover Hospitals India ('MHI') in December 2019. The purchase price allocation was completed at the end of 2020, this resulted in an additional deferred tax liability of €3.6m and goodwill of €3.6m due to timing differences relating to property, plant and equipment. The consolidated statement of financial position as at 30 June 2020 has been restated for these amounts.

In the interim report for January-June 2020, the total cash balance at the end of the period included €50.0m of liquid short-term investments. In this interim report, these have been restated and classified as short-term investments as at June 30 2020.

The preparation of interim reports requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Group's accounting policies. Refer to the Group's consolidated financial statements 2020 for further information on the use of estimates and judgements.

The parent company applies the Swedish Annual Accounts Act and the Financial Reporting Board's Recommendation RFR 2 Accounting for Legal Entities.

Alternative performance measures (APMs) are presented in this interim report since these are considered as important supplemental measures of the Company's performance. For definition and reconciliation of APMs, refer to

www.medicover.com/financial-information.

2. Segment information

		Apr-Jun 2021				Apr-Jun 2020
€m	Healthcare Services	Diagnostic Services	Central/ other	Group total	Healthcare Services	Diagnostic Services	Central/ other	Group total
Revenue	185.7	168.7	0.0		110.5	90.6	0.1
Inter-segment revenue	-0.2	-5.4	0.1		-0.2	-2.2	0.0
Revenue from external customers	185.5	163.3	0.1	348.9	110.3	88.4	0.1	198.8
By payer:
Private	167.2	110.8	0.1	278.1	98.2	55.1	0.1	153.4
Public	18.3	52.5	-	70.8	12.1	33.3	-	45.4
By country:
Poland	111.7	16.5	0.0	128.2	77.3	6.9	0.0	84.2
Germany	-	79.2	-	79.2	-	51.1	-	51.1
India	43.6	-	-	43.6	12.6	-	-	12.6
Romania	21.0	21.4	0.0	42.4	13.0	11.2	-	24.2
Ukraine	2.0	26.5	-	28.5	1.2	12.3	-	13.5
Other countries	7.2	19.7	0.1	27.0	6.2	6.9	0.1	13.2
Operating profit	18.6	33.0	-5.4	46.2	2.2	-1.3	-3.2	-2.3
Margin	10.0%	19.6%		13.3%	2.0%	-1.5%		-1.2%
Depreciation, amortisation and impairment	14.8	10.4	0.4	25.6	16.2	11.0	0.4	27.6
EBITDA	33.4	43.4	-5.0	71.8	18.4	9.7	-2.8	25.3
Margin	18.0%	25.7%		20.6%	16.7%	10.6%		12.7%
Right-of-use depreciation/impairment	-5.6	-4.7	-0.1	-10.4	-5.0	-5.3	-0.1	-10.4
Interest on lease liabilities	-2.4	-0.8	0.0	-3.2	-1.7	-0.8	0.0	-2.5
Segment result: EBITDAaL	25.4	37.9	-5.1	58.2	11.7	3.6	-2.9	12.4
Margin	13.7%	22.5%		16.7%	10.6%	4.0%		6.3%
Other income/(costs)				0.2				-0.1
Net interest expense				-3.9				-4.5
Other financial income/(expense)				2.6				0.6
Share of profit of associates				0.3				0.1
Income tax				-11.9				-2.3
Profit/(loss) for the period				33.5				-8.5

		Jan-Jun	2021		Jan-Jun 2020
€m	Healthcare Services	Diagnostic Services	Central/ other	Group total	Healthcare Services	Diagnostic Services	Central/ other	Group total
Revenue	343.0	334.2	0.1		244.3	198.7	0.2
Inter-segment revenue	-0.5	-10.8	0.1		-0.3	-5.3	0.0
Revenue from external customers	342.5	323.4	0.2	666.1	244.0	193.4	0.2	437.6
By payer:
Private	306.4	215.6	0.2	522.2	217.9	123.8	0.2	341.9
Public	36.1	107.8	-	143.9	26.1	69.6	-	95.7
By country:
Poland	213.6	31.2	0.0	244.8	169.8	15.9	0.0	185.7
Germany	-	160.5	-	160.5	-	104.1	-	104.1
India	69.7	-	-	69.7	30.3	-	-	30.3
Romania	41.5	44.0	0.0	85.5	28.1	26.4	-	54.5
Ukraine	3.7	51.5	-	55.2	3.1	29.9	-	33.0
Other countries	14.0	36.2	0.2	50.4	12.7	17.1	0.2	30.0
Operating profit	27.4	70.5	-10.1	87.8	3.5	8.9	-8.3	4.1
Margin	8.0%	21.1%		13.2%	1.5%	4.5%		0.9%
Depreciation, amortisation and impairment	28.5	20.2	0.8	49.5	29.4	20.0	0.8	50.2
EBITDA	55.9	90.7	-9.3	137.3	32.9	28.9	-7.5	54.3
Margin	16.3%	27.1%		20.6%	13.5%	14.5%		12.4%
Right-of-use depreciation/impairment	-10.7	-9.3	-0.2	-20.2	-9.9	-10.0	-0.2	-20.1
Interest on lease liabilities	-4.4	-1.6	0.0	-6.0	-3.4	-1.6	0.0	-5.0
Segment result: EBITDAaL	40.8	79.8	-9.5	111.1	19.6	17.3	-7.7	29.2
Margin	11.9%	23.9%		16.7%	8.0%	8.7%		6.7%
Other income/(costs)				0.1				-0.1
Net interest expense				-8.0				-9.9
Other financial income/(expense)				1.4				-3.9
Share of profit of associates				0.6				0.1
Income tax				-22.1				-1.3
Profit/(loss) for the period				59.8				-11.0

3. Share capital

Share capital as at 30 June 2021 was €30.1m (€30.1m) and corresponded to the following shares:

	Class A shares	Class B shares	Class C* shares	Total
1 January 2020	78,771,431	54,563,764	2,400,000	135,735,195
Issue of shares		15,000,000		15,000,000
Conversion of class C to class B shares		15,356	-15,356
Conversion of class A to class B shares	-20,000	20,000
30 June 2020	78,751,431	69,599,120	2,384,644	150,735,195
1 January 2021	78,551,881	69,798,670	2,384,644	150,735,195
Conversion of class A to class B shares	-610	610
30 June 2021	78,551,271	69,799,280	2,384,644	150,735,195
* held by the Company as treasury shares.

Celox Holding AB owned 47,157,365 shares and 55.0% of the voting rights (47,157,365 shares and 55.0% of the voting rights at year-end 2020).

(136,812,089) for the quarter and 148,350,551 (135,073,727) for the first half.

The number of shares used to calculate the basic and diluted earnings per share was 148,350,551

The quota value was €0.2 (€0.2) per share.

4. Business combinations

€m	Total
Cash and cash equivalents	0.7
Accounts receivable and inventories	5.8
Property, plant and equipment	9.2
Right-of-use assets	35.8
Goodwill	11.4
Other intangible assets:	0.9
Brand	0.7
Operating licenses	0.1
Other	0.1
Deferred tax	-0.7
Lease liabilities	-35.8
Corporate tax payable	-0.4
Accounts payable	-8.6
Loans payable	-2.4
Non-controlling interests	-0.1
Total purchase price	15.8
Less: cash and cash equivalents acquired	-0.7
Deferred and contingent consideration payable (discounted)	-2.8
Payment related to prior year's acquisitions	3.8
Total cash flow for acquisitions net of cash acquired	16.1

During the second quarter, the Group acquired 100% of the voting rights in AWO Gesundheitszentrum Calbe (Saale) GmbH, a hospital in Germany specialised in internal and geriatric medicine. It also acquired the Pradhama hospital in Vizag (India) and 100 % of the voting rights in the laboratory business ANV Güven Sağlık

Hizmetleri Ticaret A.Ş. in Turkey. Business combinations during the first quarter included a fitness club chain, a dental business and a network of medical centres in Poland. None of the acquisitions in 2021 are individually significant. Total payments net of cash acquired for these acquisitions amounted to €16.1m. Goodwill of

€11.4m was recognised, representing expected synergies with existing operations. Contingent consideration has been recognised and capped as part of the purchase price based on future performance. Included in the consolidated income statement 2021 was revenue of €7.0m and a net

5. Related party transactions

The Group has transactions with non-controlling interests in MHI. The purchase of material and services amounted to €-7.3m (€-2.9m) for the

loss of €0.8m. If these acquisitions had occurred on 1 January 2021, revenue would have been €5.1m higher and net profit would have been €2.9m lower.

The purchase price allocations are preliminary and subject to change in the twelve months from the acquisition date.

quarter and to €-13.3m (€-7.4m) for the first half. Trade payables were €8.9m (€6.9m) as at 30 June 2021.

6. Financial assets and liabilities

		30 Jun 2021		30 Jun 2020			31 Dec 2020
Note	€m	Non current	Current	Total	Non current	Current	Total	Non current	Current	Total
	Financial assets at fair value through profit or loss
	Short-term investments	-	25.1	25.1	-	50.0	50.0	-	40.1	40.1
	Foreign currency swaps	-	0.0	0.0	-	0.4	0.4	-	-	-
	Other financial assets	3.2	-	3.2	3.0	-	3.0	3.2	-	3.2
	Total	3.2	25.1	28.3	3.0	50.4	53.4	3.2	40.1	43.3
	Financial assets at amortised cost
	Other financial assets	10.7	0.0	10.7	6.8	0.0	6.8	6.7	0.0	6.7
	receivables1) Trade and other	-	147.3	147.3	-	105.7	105.7	-	129.3	129.3
	Total	10.7	147.3	158.0	6.8	105.7	112.5	6.7	129.3	136.0
	Cash and cash equivalents	-	77.9	77.9	-	74.0	74.0	-	46.7	46.7
	Total financial assets	13.9	250.3	264.2	9.8	230.1	239.9	9.9	216.1	226.0
	Financial liabilities at fair value through profit or loss
	Foreign currency swaps	-	-	-	-	-	-	-	0.3	0.3
a)	payable2) Contingent consideration	13.4	4.5	17.9	7.8	6.1	13.9	11.5	7.0	18.5
	Total	13.4	4.5	17.9	7.8	6.1	13.9	11.5	7.3	18.8
	Put option liquidity obligations with non-controlling
b)	interests (with movement through equity)	47.4	-	47.4	39.2	-	39.2	45.9	-	45.9
	Total financial liabilities at fair value	60.8	4.5	65.3	47.0	6.1	53.1	57.4	7.3	64.7
	Financial liabilities at amortised cost
	Borrowings2)	147.8	21.3	169.1	139.6	48.1	187.7	141.2	7.8	149.0
	Lease liabilities	205.2	38.6	243.8	146.8	39.7	186.5	165.1	34.4	199.5
	Other financial liabilities	-	4.6	4.6	-	5.7	5.7	-	6.8	6.8
	payables1) Trade and other	-	35.1	35.1	-	34.8	34.8	-	57.6	57.6
	payable2) Deferred consideration	-	0.3	0.3	-	0.5	0.5	0.1	0.3	0.4
	Total	353.0	99.9	452.9	286.4	128.8	415.2	306.4	106.9	413.3
	Total financial liabilities	413.8	104.4	518.2	333.4	134.9	468.3	363.8	114.2	478.0

1) Amount does not reconcile with amount in the statement of financial position due to non-financial items.

2) Contingent consideration payable, borrowings and deferred consideration payable are presented as loans payable in the statement of financial position.

Financial assets and liabilities carried at amortised cost are considered to have carrying amounts that materially correspond to their fair value.

Recognised fair value measurements - valuation technique and principal inputs

A breakdown of how fair value is determined is indicated in the following three levels:

Level 1: The Group has liquid short-term investments which consist of highly diversified Euro denominated bond funds where the valuation is based on level 1.

Level 2: The Group has foreign currency swaps where the valuation is based on level 2.

Level 3: The Group has the following financial assets and liabilities recurrently measured using level 3 fair value measurements.

a) The fair value of the contingent consideration payable, resulting from past business combinations, are based on the estimated outcome of future performance targets.

b) The Group is contractually obliged, at a future date, to acquire a non-controlling interest in one of the Group's German subsidiaries at market price determined at that future date. Fair value amounted to €18.7m (€18.9m). The valuation is based on management's estimate of the exercise date and

the expected valuation of the put option at that time. Due to contracted terms disadvantaging the holder, it is estimated that the put option will be exercised in 2023 at the earliest. In determining the fair value of the obligation, estimations of key variables are made, of which the most significant are the growth rate of the business to determine its profitability at the future date of exercise and the discount rate applied to the nominal value.

The put option liquidity obligation with noncontrolling interests in MHI amounted to €28.7m (€27.0m). Half of the put options can be exercised from March 2023 and the remaining half from March 2027. In determining the fair value of the put option liquidity obligation estimations of key variables were made, of which the most significant are the growth rate of the business to determine its profitability at the future date of exercise and the discount rate applied to the nominal value.

The following table summarises the quantitative information about the significant unobservable input used in the level 3 fair value measurements:

Fair Value (€m)				Inputs		Sensitivity
Description	30 Jun 2021	31 Dec 2020		30 Jun 2021	31 Dec 2020	Relationship of unobservable inputs to fair value (FV)
Put option (liquidity obligation with non-controlling	18.7	18.9	Earnings growth factor	5.5%	5.5%	Increase of 1% point in profit growth = increase in FV liability of €0.3m
interests in a German subsidiary)			Risk adjusted discount rate	0.9%	0.4%	Decrease of 1% point in discount rate = increase in FV liability of €0.5m
Put option (liability obligation with non-controlling interests in MHI)	28.7	27.0	6 year projected CAGR EBITDA	27.0%	27.0%	Increase of 10% in CAGR EBITDA = increase in FV liability of €3.4m
			Risk adjusted discount rate	11.4%	11.3%	Decrease of 1% point in discount rate = increase in FV liability of €1.1m
Contingent consideration payable	17.9	18.5	Risk adjusted discount rate	5.5%-17.7%	5.5%-8.7%	Decrease of 1% point in discount rate = increase in FV liability of €0.2m

No additional significant changes have been made to valuation techniques, inputs or assumptions in 2021.

No financial assets or liabilities have been reclassified between the different levels in the fair value hierarchy.

7. Net financial debt and other financial liabilities

€m	30 Jun 2021	30 Jun 2020	31 Dec 2020
Non-current loans payable	161.2	147.4	152.8
Current loans payable	26.1	54.7	15.1
Total loans payable	187.3	202.1	167.9
Less: short-term investments	-25.1	-50.0	-40.1
Less: cash and cash equivalents	-77.9	-74.0	-46.7
Loans payable net of cash and liquid short-term investments	84.3	78.1	81.1
Non-current lease liabilities	205.2	146.8	165.1
Current lease liabilities	38.6	39.7	34.4
Total lease liabilities	243.8	186.5	199.5
Financial debt	431.1	388.6	367.4
Less: short-term investments	-25.1	-50.0	-40.1
Less: cash and cash equivalents	-77.9	-74.0	-46.7
Net financial debt	328.1	264.6	280.6
	30 Jun	30 Jun	31 Dec
€m	2021	2020	2020

Other financial liabilities
Non-current	47.4	39.2	45.9
Current	4.6	5.7	6.8
Total	52.0	44.9	52.7