AddLife — Interim / Quarterly Report 2017

Oct 27, 2016

INTERIM REPORT 1 APRIL 2016 - 30 SEPTEMBER 2016

"Continued strong organic growth"

1 JULI 2016 - 30 SEPTEMBER 2016 (3 MONTHS)

• Net sales in the second quarter rose by 10 percent to SEK 409.1 million (370.5), of which organic growth totalled 8 percent and acquired growth totalled 2 percent.
• EBITA rose by 25 percent to SEK 31.5 million (25.1) and EBITA-margin amounted to 7.7 percent (6.8).
• Profit after tax rose by 80 percent and amounted to SEK 17.5 million (9.7).

1 APRIL 2016 - 30 SEPTEMBER 2016 (6 MONTHS)

• Net sales during the interim period rose by 37 percent to SEK 874.1 million (637.6), of which organic growth totalled 9 percent and acquired growth totalled 29 percent.
• EBITA rose by 34 percent to SEK 77.9 million (58.0) and EBITA-margin amounted to 8.9 percent (9.1).
• Profit after tax rose by 38 percent and amounted to SEK 43.9 million (31.8).
• During the interim period the Company carried out a rights issue of SEK 300 million to existing shareholders; the issue was oversubscribed by about 70 percent.
• Two acquisitions have been carried out during the interim period, V-Tech AB and Esthe-Tech AB, with a combined annual sale of about SEK 50 million.
• After the end of the interim period Svan Care AB was acquired, with annual sales of approximately SEK 35 million.
• After the end of the interim period an agreement was signed with Medline to represent them in terms of sales and support throughout the Nordic region, adding annual sales of approximately SEK 40 million.

		3 months ending		6 months ending				12 months ending
SEKm	30 Sep 16	30 Sep 15	change	30 Sep 16	30 Sep 15	change	30 Sep 16	31 Mar 16	change
Net sales	409.1	370.5	10 %	874.1	637.6	37 %	1,798.9	1,562.4	15 %
EBITA	31.5	25.1	25 %	77.9	58.0	34 %	155.1	135.2	15 %
EBITA-margin, %	7.7	6.8		8.9	9.1		8.6	8.7
Profit before tax	21.8	15.6	40 %	56.5	45.0	26 %	111.7	100.2	11 %
Profit for the period	17.5	9.7	80 %	43.9	31.8	38 %	89.9	77.8	16 %
Earnings per share SEK	0.72	0.49	47 %	1.84	1.78	3 %	4.13	4.15	-0 %

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, mainly in the Nordic region. The Group is divided into two business areas: Labtech and Medtech. The Group comprises approximately 25 operating subsidiaries that provide equipment, instruments, medical devices and reagents, as well as advice and technical support to customers primarily in medicine, research and academia, along with the food and pharmaceutical industries. The Company is active in the Nordic countries and is also represented by smaller businesses on the European market in Germany, the Benelux countries, Estonia and Italy. AddLife is the market leader in the Nordic region in several well-defined niches in the market areas of diagnostics, medical devices, biomedical research and laboratory analysis.

Comments by the CEO

The business situation has generally been good during the summer quarter, with growth in all of our markets. Overall our sales grew during the quarter by 10 percent to SEK 409 million, with continued strong organic growth of 8 percent. EBITA further strengthened and increased in the quarter by 25 percent to SEK 32 million. The second quarter is usually our seasonally weakest quarter due to factors such as fewer surgical procedures, closed wards and laboratories during the holiday period.

In Sweden the focus on Life Science remains strong from both the private and public sectors. Private companies and foundations are sponsoring various research projects. The Government has also budgeted increased annual funding for research, and there is generally a political will with many initiatives to stimulate the development of the Life Science industry. Willingness to invest in health care in Sweden also remains strong regarding both diagnostics and medical devices. Our companies have been successful in the market, with interesting new transactions thanks to a strong customer offering. The number of tenders for which we submitted bids, primarily in medical devices, continues to increase compared to previous year.

The Danish market also continues to develop positively and demand has continued to be robust in our companies. The Government's savings programme has affected our customers in university research, and there is generally a cautious attitude regarding new investments in instruments. The pharma industry is the engine in Life Science in Denmark, with many companies performing well, which increases demand for our solutions. We do not believe that pharma industry cutbacks in Denmark will have any significant impact on our businesses in the long term.

Our businesses in Finland report a convincing performance and continue to defy the market by growing in both sales and earnings. The Finnish market remains challenging. The Government's cost-cutting program for universities is underway, which affects investment appetite in the research sector in particular. The number of investments in instruments has declined slightly, while sales of reagents have increased. At the same time measures to reform healthcare and social services are being implemented, along with changes in regional administrations, with the goal of saving the Government a total of EUR 3 billion over the next decade.

The Norwegian market remains stable with good demand and willingness to invest in health care and several deliveries of instruments have been made during the quarter. The primary health market segment performed well based on the joint purchasing reform implemented a few years ago when the municipalities were given more responsibility for health care. Initiatives in the Oslo Life Science Cluster research companies have increased demand for our products and services, especially in molecular biology.

Business outside the Nordic countries is developing well and we have a good growth in all markets where we operate. Our offering primarily concerns our own products in the Medtech range.

The integration of Leica Biosystems' operations in Sweden and Denmark has taken longer than we expected, but as of September, all operations have been transferred.

Our companies are actively working to address the trend towards larger contracts with public services in the Nordic countries, which entail both challenges and opportunities. We are constantly working to improve our selection by offering a wider product range with products on the cutting edge of technology with advanced services, all aimed at best meeting customer needs. For us it is important to be a responsible supplier to health care and social services. During the quarter, public discussions have addressed how the county councils in Sweden have conducted certain procurement processes with private operators. We welcome the transparency initiative currently underway.

Digitisation and e-Health are hot discussion topics in all of the countries and new technologies provide new opportunities both for us and for our customers. Digitisation allows us to offer solutions that streamline work for our customers and improve care for the patients. For example, several years ago we installed a comprehensive solution in Region Skåne where we have about 700 point-of-care analysers in primary care connected to a digital solution from which test results are automatically transferred directly to the patients' medical records. This enables patients to receive immediate answers from their doctor.

We are actively working to develop our existing companies and to attract new exciting businesses for our Group. On 3 October, after the end of the quarter, we acquired Svan Care AB, which joined the Medtech business area. The acquisition will contribute sales of approximately SEK 35 million on an annual basis and represents an expansion into the field of home care, an extremely interesting and growing market segment.

After the end of the quarter we also signed an agreement to represent Medline for all sales and support throughout the Nordic region as an integral part of existing operations within the Medtech business area. The business is expected to be transferred in November and will contribute sales of approximately SEK 40 million on an annual basis. Medline is a privately owned leading global provider of medical equipment and the addition further strengthens our market position.

Kristina Willgård President and CEO

Group development in the quarter

Net sales in the second quarter increased by 10 percent to SEK 409.1 million (370.5). For comparable units, organic growth totalled 8 percent and acquired growth totalled 2 percent. Exchange rate changes had a marginally positive effect on net sales, corresponding to SEK 1.8 million, and a positive effect on EBITA of 3 percent corresponding to SEK 0.6 million.

EBITA increased by 25 percent to SEK 31.5 million (25.1) and EBITA-margin amounted to 7.7 percent (6.8). The improved result is primarily due to increased sales but also an effect of cost efficiency in our companies.

Net financial items amounted to SEK 0.5 million (-1.0) and profit after financial items reached SEK 21.8 million (15.6). Profit after tax for the quarter increased by 80 percent to SEK 17.5 million (9.7) and the effective tax rate was 20 percent (38).

Group development during the interim period

During the interim period net sales increased by 37 percent to SEK 874.1 million (637.6). For comparable units, organic growth totalled 9 percent and acquired growth totalled 29 percent. Exchange rate changes had a negative effect on net sales of 1 percent, corresponding to SEK 4.1 million, and a negative effect on EBITA of 1 percent corresponding to SEK 0.5 million.

EBITA increased by 34 percent to SEK 77.9 million (58.0) and EBITA-margin amounted to 8.9 percent (9.1). The increased result is mainly an effect that the Mediplast Group has been part of the Group during the whole period.

Net financial items amounted to SEK -1.3 million (-1.5) and profit after financial items reached SEK 56.5 million (45.0). Profit after tax for the interim period increased by 38 percent to SEK 43.9 million (31.8) and the effective tax rate was 22 percent (29).

Development in the business areas

AddLife's subsidiaries are organised in two business areas; Labtech and Medtech.

Labtech

The Labtech business area consists of about 15 companies active in the market areas diagnostics, biomedical research and laboratory equipment.

	3 months ending			6 months ending			12 months ending
SEKm	30 Sep 16	30 Sep 15	change	30 Sep 16	30 Sep 15	change	30 Sep 16	31 Mar 16	change
Net sales	246.8	218.4	13 %	528.3	479.0	10 %	1,119.2	1,069.9	5 %
EBITA	21.2	15.7	35 %	56.1	47.3	19 %	125.8	117.0	8%
EBITA-margin, %	8.6	7.2		10.6	9.9		11.2	10.9

Labtechs sales increased in the second quarter by 13 percent to SEK 246.8 million (218.4), a solely organic growth. EBITA increased to by 35 percent to SEK 21.2 million (15.7), corresponding to an EBITA-margin of 8.6 percent (7.2). Sales increased during the interim period by 10 percent to SEK 528.3 million (479.0), a solely organic growth. EBITA increased by 19 percent to SEK 56.1 million (47.3), corresponding to an EBITA-margin of 10.6 percent (9.9).

During the quarter – and throughout the interim period – the businesses have continued to perform well. Demand was strong, especially in diagnostic equipment and reagents in healthcare, and we signed new contracts and delivered several instruments during the second quarter. Our companies promote a strong offering in the market in both the more traditional fields of clinical

chemistry and the newer technologies in molecular biology. Although it has taken longer than expected, as of September Leica Biosystems' operations are now fully integrated in both Sweden and Denmark. Our companies that sell instruments and consumables to research laboratories have also had good growth. Investments in instruments by privately funded research, including the pharma industry, have been robust, especially in Denmark, where demand for education is growing. Sales of advanced reagents, such as antibodies for cancer research, are also steadily growing throughout the Nordic countries. Savings initiatives implemented in university research in both Denmark and Finland have led to a cautious approach to instrument sales, but this trend was offset by higher consumables sales for both the quarter and the period.

Medtech

The Medtech business area consists of about 10 companies that provide medical device products within the medtech market, with a focus on surgery, thoracic medicine, neurology, wound care, anaesthesia, intensive care, ear, nose and throat, ostomies, and home healthcare.

		3 months ending		6 months ending			12 months ending
SEKm	30 Sep 16	30 Sep 15	change	30 Sep 16	30 Sep 15	change	30 Sep 16	31 Mar 16	change
Net sales	162.3	152.1	7 %	345.8	158.6	118 %	679.7	492.5	38 %
EBITA	11.8	8.0	48 %	25.5	8.6	197 %	49.3	32.4	52 %
EBITA-margin, %	7.3	5.3		7.4	5.4		7.3	6.6

In the second quarter Medtechs net sales increased to SEK 162.3 million (152.1) and EBITA reached SEK 11.8 million (8.0), corresponding to an EBITA-margin of 7.3 percent (5.3). Net sales increased during the interim period by 118 percent to SEK 345.8 million (158.6) of which organic growth totalled 117 percent. EBITA increased to SEK 25.5 million (8.6), corresponding to an EBITA-margin of 7.4 percent (5.4).

The business situation within Medtech has been stable during both the quarter and the period. Medtech is usually particularly sensitive to the holiday months since surgical procedures are cancelled and wards are closed for a few weeks to achieve healthcare savings. Nevertheless, demand from health care is growing, especially in Sweden, and the number of contracts on which we have bid, and even won, continues to increase compared with the previous year. The product mix has improved as a result of increased demand for our own ENT (ear, nose & throat), surgery, and thoracic surgery products. The changes implemented in Finland in terms of both product range and organisation have further improved margins. Sales in the COPD niche segment have also continued perform well. Operations outside the Nordic region continue to perform well with good profitability.

Financial position and cash flow

At the end of the period the equity ratio stood at 49.1 percent (22.1). Equity per share totalled SEK 26.92 (15.21), excluding noncontrolling interest. The return on equity at the end of the period was 19.5 percent (37.7). The decrease in return on equity relates primarily to the rights issue of SEK 300 million that was carried out during the first quarter. Return on working capital, P/WC (EBITA in relation to working capital) amounted to 54.7 percent (81.4). The change in return on working capital between the years is attributable to the fact that companies within the Medtech business area ties up more capital, primarily in inventory. The Medtech companies are now included for 12 months in the calculation.

The Group's interest-bearing net debt at the end of the period stood at SEK 313.8 million (662.4), including pension liabilities of SEK 70.0 million (72.9). The net debt/equity ratio, calculated on the basis of net debt including provisions for pensions, totalled 0.5, compared to 1.6 at the beginning of the interim period. The decrease in the net debt/equity ratio relates to the share issues that was carried out during the first quarter.

Cash and cash equivalents, consisting of cash and bank balances, together with approved but non-utilised credit facilities, totalled SEK 368.5 million on 30 September 2016.

Cash flow from operating activities reached SEK 21.2 million (40.3) during the interim period. The lower cash flow relates to increase in inventory and decrease in accounts payable. Acquisitions of companies amounted to SEK 38.6 million (233.9). Investments in non-current assets during the interim period amounted to SEK 14.8 million (11.7), which were primarily attributable to investments in a small production facility. Disposals of non-current assets totalled SEK 1.2 million (0.3).

Employees

At the end of the period, the number of employees was 453, compared to 427 at the beginning of the interim period. During the period, implemented acquisitions led to an increase of 11 in the number of employees. The average number of employees during the latest 12-month period was 434 (317).

Acquisitions and divestments

During the first quarter two company acquisitions took place:

On 1 April, all shares in V-Tech AB and Esthe-Tech AB were acquired to the business area Medtech. The companies have 11 employees and combined sales of approximately SEK 50 million. The acquisitions represent an expansion in, above all, the area of vascular and aesthetic surgery, strengthening AddLife's position in an attractive segment of the Nordic market.

The combined effect of the acquisitions on the AddLife Group's net sales was SEK 20.9 million, on EBITA SEK 1.0 million, on operating profit SEK -0.5 million and on profit after tax for the period SEK -0.4 million.

The fair value of not yet paid contingent consideration for acquisitions made during the interim period is calculated to SEK 12.2 million, which is approximately 60 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 were as follows:

	Fair value
Intangible non-current assets	29.9
Other non-current assets	0.2
Inventories	8.0
Other current assets	14.5
Deferred tax liability/tax asset	-7.6
Other liabilities	-12.4
Acquired net assets	32.6
Goodwill	16.0
Consideration 1)	48.6
Less: cash and cash equivalents in acquired businesses	-5.1
Contingent consideration not yet paid	-11.1
Effect on the Group's cash and cash equivalents	32.4
1) The consideration is stated excluding acquisition

expenses.

The goodwill resulting from the acquisitions is attributable to expectations that the Group's position in the market in question for each acquisition will grow stronger and to the knowledge accumulated in the companies acquired. Transaction costs for the acquisitions totalled SEK 0.5 million and are recognized as selling expenses.

During the interim period, SEK 0.4 million has been recognized as other operating income due to estimated contingent considerations, relating to previous acquisitions, deviated from the actual outcome.

Acquisitions as of the financial year 2015/2016 and 2016 are distributed among the Group's business areas as follows:

Acquisitions	Time	Net sales, SEKm*	Number of employees*	Business area
Mediplast AB, Sverige	July, 2015	465	120	Medtech
Fenno Medical Oy, Finland	July, 2015	185	35	Medtech
V-Tech AB och Esthe-Tech AB, Sverige	April, 2016	50	11	Medtech
Svan Care AB, Sverige	October, 2016	35	13	Medtech

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

Shares structure

The share capital at the end of the interim period stood at SEK 50.1 million.

Share class	Number of shares
Class A shares	1,011,766
Class B shares	23,605,327
Total number of shares before repurchases	24,617,093
Of which repurchased class B shares	-230,000
Total number of shares after repurchases	24,387,093

During the period, 230,000 treasury shares were bought back. The own holding of 230,000 Class B shares corresponds to 0.9 percent of the total number of shares and 0.7 percent of the votes. The repurchased shares cover the company's undertaking in outstanding call options programmes. The average purchase price for shares bought back amounts to SEK 143.93 per share. The average number of treasury shares held during the year was 15,083 (-). The share price at 30 September 2016 was SEK 136.75 and the most recent price paid for the AddLife share on 26 February 2016 was SEK 142.75.

In accordance with a resolution of the September 2016 AGM, 25 members of management were offered the opportunity to acquire 230,000 call options on repurchased shares. The programme was fully subscribed. If fully exercised, the number of B shares outstanding will increase by 230,000, equivalent to 0.9 percent of the total number of shares and 0.7 percent of the votes in the Company. The call options were transferred at a price of SEK 10.30 per option, equivalent to the market value of the options based on an independent valuation conducted in accordance with the Black-Scholes model. The redemption price of the call options is SEK 148.10, corresponding to 110 percent of the average share price during the measurement period 2 August – 15 September 2016. Each call option entitles the holder to acquire one bought-back class B share during the period from 17 September 2018 through 28 February 2019.

Call options issued on repurchased shares have not resulted in any dilution effect during the interim period.

Parent company

The Parent Company's net sales for the interim period amounted to SEK 11.8 million (-) and profit after financial items for the interim period amounted to SEK -3.8 million (-1.0). At the end of the interim period the Parent Company's net financial debt stood at SEK 567.9 million (472.8). The share capital at the end of the interim period was SEK 50.1 million (40.1).

Accounting policies

This interim report was prepared as per IFRSs 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 Entites, of the Swedish Financial Reporting Board. The accounting policies and basis for calculations applied in the 2015/2016 annual report for AddLife AB were also used here. For previous periods, the accounting policies and basis for calculations applied in the 2014/2015 annual report for Addtech AB have been used. The new and revised IFRS standards and IFRIC interpretations effective from financial year 2016, have not had any material effect on the consolidated financial statements.

The Group was formed on 22 June 2015 when AddLife AB acquired 20 companies that were part of Addtech AB's Life Science segment from Addtech Nordic AB, at carrying amount. Since the businesses did not historically comprise a Group under IFRS definitions, there are no consolidated financial statements for periods prior to 22 June 2015. The historical financial information for periods through 22 June 2015 have therefore been prepared as combined financial statements for the reporting entity comprising AddLife AB and the 20 subsidiaries. Net debt in the combined financial statements consists of historical indebtedness recognized for the reporting entity.

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 to be a replacement for measurements as defined under IFRS. This report provides information in greater detail regarding definitions of financial performance measures.

Nomination committee

The 2016 AGM authorised the Board Chairman to establish a nomination committee for upcoming elections to the Board, by appointing members from among representatives of the five shareholders who controlled the largest number of votes in the Company at 30 September 2016, to serve with the Chairman on the nomination committee. In accordance with the above, the Committee comprises these appointed members: Johan Sjö, (Chairman of the Board), Anders Börjesson, Tom Hedelius, Håkan Ros (appointed by RoosGruppen AB), Martin Wallin (appointed by Lannebo Fonder) and Johan Strandberg (appointed by SEB Investment Management). Information on how to contact the Nomination Committee is available on the AddLife website.

Transactions with related parties

No transactions with related parties that materially affected the Group's position and earnings took place during the interim period.

Events after the reporting period

On 3 October 2016 the acquisition of Svan Care AB was completed and the operation joined the Medtech business area. The company has 13 employees and sales of about SEK 35 million. The acquisition represents an expansion into the field of home care, an extremely interesting and growing market segment. The acquisition is expected to have a marginally positive effect on AddLife's earnings per share. The acquisition analysis is not yet complete and will be presented in the next year-end report.

After the end of the quarter AddLife also signed an agreement to represent Medline in relation to all sales and support throughout the Nordic region. The business will become an integral part of existing operations within the Mediplast Group, in the Medtech business area. Medline is a privately owned leading global provider of medical equipment. It has 14,000 employees and about USD 8 billion in sales. The Nordic business will be transferred in November 2016 and will contribute sales of approximately SEK 40 million on an annual basis. The operation will be built around the strong sales and support organisation currently in place in the Mediplast Group, within the Medtech business area. The takeover of the business is expected to have a marginally positive effect on AddLife's earnings per share.

No other events of significance to the Group occurred after the end of the reporting 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 management report (33-36), in AddLife's annual report 2015/2016. The Parent Company is indirectly affected by the above risks and uncertainties through its function in the Group.

Financial calendar

The year-end report for 1 April – 31 December 2016 will be published on 16 February 2017.

Teleconference

Investors, analysts and the media are invited to a teleconference at which CEO Kristina Willgård and CFO Martin Almgren will present the interim report. The presentation will be given in Swedish and take about 20 minutes, after which there will be an opportunity to ask questions.

The teleconference will be at 10:00 a.m. on 27 October 2016. The presentation will be available via the following link: https://5569958126.globalmeet.com/MartinAlmgren Please call on: +46 8 22 90 90 code: 113242

Affirmation

The Board of Directors and the President deem that the interim period on the first six months gives a true and fair picture of the Company's and the Group's operations, position and earnings, and describes the significant risks and uncertainty factors to which the Company and the Group are exposed.

Stockholm 27 October 2016

Johan Sjö Birgit Stattin Norinder Håkan Roos Chairman of the Board Director Director

Eva Nilsagård Fredrik Börjesson Stefan Hedelius Director Director Director

Kristina Willgård President and CEO

For more information, contact; Kristina Willgård, President and CEO, +46 70 510 12 23 Martin Almgren, CFO, +46 70 228 15 45

Review report

AddLife AB (publ.) Corp. id. 556995-8126

Introduction

We have reviewed the summary interim financial information (interim report) of AddLife AB (publ.) as of 30 September 2016 and the six-month period then ended. The Board of Directors and the Managing Director are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.

Scope of review

We conducted our review in accordance with International Standard on Review Engagements ISRE 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and other generally accepted auditing practices and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causesus to believe thatthe interim report is not prepared, in all material respects, for the Group in accordance with IAS 34 and the Annual Accounts Act, and for the Parent Company in accordance with the Annual Accounts Act.

Stockholm 27 October 2016

KPMG AB KPMG AB

George Pettersson Jonas Eriksson Authorized Public Accountant Auditor in charge

Authorized Public Accountant

Business areas

Net sales by business area	2016		2015/2016
Quarterly data, SEKm	Q2	Q 1	Q 4	Q 3	Q 2	Q 1
Labtech	246.8	281.5	288.1	302.8	218.4	260.6
Medtech	162.3	183.5	164.6	169.3	152.1	6.5
Parent Company and Group items	-	-	-	-	-	-
AddLife Group	409.1	465.0	452.7	472.1	370.5	267.1

EBITA by business area	2016			2015/2016
Quarterly data, SEKm	Q2	Q1	Q 4	Q 3	Q 2	Q 1
Labtech	21.2	34.9	31.7	38.0	15.7	31.6
Medtech	11.8	13.7	12.2	11.6	8.0	0.6
Parent Company and Group items	-1.5	-2.2	-8.8	-7.5	1.4	0.7
EBITA	31.5	46.4	35.1	42.1	25.1	32.9
Depreciation intangible assets	-10.2	-9.9	-8.9	-8.5	-8.5	-3.0
Operating profit	21.3	36.5	26.2	33.6	16.6	29.9
Finance income and expenses	0.5	-1.8	-2.1	-2.5	-1.0	-0.5
Profit after financial items	21.8	34.7	24.1	31.1	15.6	29.4

Net sales by business area
		3 months ending		6 months ending		12 months ending
SEKm	30 Sep 16	30 Sep 15	30 Sep 16	30 Sep 15	30 Sep 16	31 Mar 16
Labtech	246.8	218.4	528.3	479.0	1,119.2	1,069.9
Medtech	162.3	152.1	345.8	158.6	679.7	492.5
Parent Company and Group items	-	-	-	-	-	-
AddLife Group	409.1	370.5	874.1	637.6	1,798.9	1,562.4

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

			3 months ending			6 months ending				12 months ending
					30 Sep		30 Sep
SEKm	30 Sep 16	%	30 Sep 15	%	16	%	15	%	30 Sep 16	%	31 Mar 16	%
Labtech	21.2	8.6	15.7	7.2	56.1	10.6	47.3	9.9	125.8	11.2	117.0	10.9
Medtech	11.8	7.3	8.0	5.3	25.5	7.4	8.6	5.4	49.3	7.3	32.4	6.6
Moderbolag och	-1.5		1.4		-3.6		2.1		-20.0		-14.2
koncernposter
EBITA	31.5	7.7	25.1	6.8	77.9	8.9	58.0	9.1	155.1	8.6	135.2	8.7
Avskrivningar	-10.2		-8.5		-20.1		-11.5		-37.5		-28.9
immateriella
anläggningstillgångar
Rörelseresultat	21.3	5.2	16.6	4.5	57.8	6.6	46.5	7.3	117.6	6.5	106.3	6.8
Finansiella intäkter och	0.5		-1.0		-1.3		-1.5		-5.9		-6.1
kostnader
Resultat efter finansiella	21.8		15.6		56.5		45.0		111.7		100.2
poster

Group summary

Income statement	3 months ending		6 months ending			12 months ending
SEKm	30 Sep 16	30 Sep 15	30 Sep 16	30 Sep 15	30 Sep 16	31 Mar 16
Net sales	409.1	370.5	874.1	637.6	1,798.9	1,562.4
Cost of sales	-272.0	-246.2	-573.1	-411.1	-1,176.7	-1,014.7
Gross profit	137.1	124.3	301.0	226.5	622.2	547.7
Selling expenses	-95.3	-87.9	-196.2	-145.7	-394.7	-344.2
Administrative expenses	-22.2	-20.1	-49.8	-35.0	-118.0	-103.2
Other operating income and	1.7	0.3	2.8	0.7	8.1	6.0
expenses
Operating profit	21.3	16.6	57.8	46.5	117.6	106.3
Financial income and expenses	0.5	-1.0	-1.3	-1.5	-5.9	-6.1
Profit after financial items	21.8	15.6	56.5	45.0	111.7	100.2
Tax	-4.3	-5.9	-12.6	-13.2	-21.8	-22.4
Profit for the period	17.5	9.7	43.9	31.8	89.9	77.8
Attributable to:
Equity holders of the Parent Company	17.5	9.7	43.9	31.8	89.8	77.8
Non-controlling interest	-	0.0	-	-0.1	0.1	-
Earnings per share (EPS), SEK*	0.72	0.49	1.84	1.78	4.13	4.15
Diluted EPS, SEK*	0.72	-	1.84	-	4.13	-
Average number of shares '000s	24,587	19,694	23,847	17,803	21,770	18,749
Number of shares at end of the period,	24,387	19,694	24,387	19,694	24,387	19,694
'000
* Calculated based on equity holders'
portion of profit for the period
EBITA	31.5	25.1	77.9	58.0	155.1	135.2
Depreciations included in operating
expenses
– Property, plant and equipment	-4.6	-4.0	-9.0	-6.7	-16.9	-14.6
– intangible non-current assets from	-8.7	-7.8	-17.2	-10.7	-32.3	-25.8
acquisitions
- other intangible non-current assets	-1.5	-0.7	-2.9	-0.8	-5.2	-3.1

Statement of comprehensive income
	3 months ending		6 months ending			12 months ending
SEKm	30 Sep 16	30 Sep 15	30 Sep 16	30 Sep 15	30 Sep 16	31 Mar 16
Periodens resultat	17.5	9.7	43.9	31.8	89.9	77.8
Components that will be reclassified to profit for the year
Foreign currency translation differences for the period	5.7	-0.1	11.6	-2.5	10.3	-3.8
Components that will not be reclassified to profit for the year
Revaluations of defined benefit pension plans	-7.8	-	-6.4	-	3.3	9.7
Tax attributable to items not to be reversed in profit or loss	1.7	-	1.4	-	-0.8	-2.2
Other comprehensive income	-0.4	-0.1	6.6	-2.5	12.8	3.7
Total comprehensive income	17.1	9.6	50.5	29.3	102.7	81.5
Attributable to:
Equity holders of the Parent Company	17.1	9.6	50.5	29.4	102.6	81.5
Non-controlling interests	-	0.0	-	-0.1	0.1	-

Balance sheet, SEK,m	30 Sep 16	31 Mar 16	30 Sep 15
Goodwill	497.2	479.1	479.3
Other intangible non-current assets	268.6	255.8	256.3
Property, plant and equipment	67.0	59.4	60.6
Financial non-current assets	12.3	10.7	17.5
Total non-current assets	845.1	805.0	813.7
Inventories	243.2	212.9	208.5
Current receivables	250.7	247.6	271.7
Cash and cash equivalents	10.7	11.6	84.1
Total current assets	504.6	472.1	564.3
Total assets	1,349.7	1,277.1	1,378.0
Total equity	662.7	346.6	299.6
Interest-bearing provisions	70.0	63.3	72.9
Non-interest-bearing provisions	55.6	52.5	63.0
Non-current interest-bearing liabilities	157.8	301.1	107.9
Total non-current liabilities	283.4	416.9	243.8
Non-interest-bearing provisions	10.5	4.8	0.2
Current interest-bearing liabilities	96.7	185.1	565.7
Current non-interest-bearing liabilities	296.4	323.8	268.7
Total current liabilities	403.6	513.6	834.6
Total equity and liabilities	1,349.7	1,277.1	1,378.0

Statement of change in
Group equity, SEKm		1 Apr 16 – 30 Sep 16			1 Apr 15 − 31 Mar 16			1 Apr 15 − 30 Sep 15
	Equity excl. non control- ling interests	Non- control ling interests	Total equity	Equity excl. non- control ling interests	Non- control ling interests	Total equity	Equity excl. non- control ling interests	Non- control ling interests	Total equity
Amount at beginning of period	346.6	-	346.6	263.0	0.3	263.3	263.0	0.3	263.3
New share issue	-	-	-	67.2	-	67.2	67.2	-	67.2
Non-cash issue	-	-	-	234.3	-	234.3	234.3	-	234.3
Rights issue	300.0	-	300.0	-	-	-	-	-	-
Issue expenses	-1.3	-	-1.3	-	-	-	-	-	-
Repurchase of treasury shares	-33.1		-33.1	-	-	-	-	-	-
Dividend	-	-	-	-294.9	-0.1	-295.0	-294.4	-0.1	-294.5
Change non-controlling interests	-	-	-	-4.5	-0.2	-4.7	-	-	-
Total comprehensive income	50.5	-	50.5	81.5	-	81.5	29.4	-0.1	29.3
Amount at the end of the period	662.7	-	662.7	346.6	-	346.6	299.5	0.1	299.6

Cash flow statement	3 months ending			6 months ending		12 months ending
SEKm	30 Sep 16	30 Sep 15	30 Sep 16	30 Sep 15	30 Sep 16	31 Mar 16
Profit after financial items	21.8	15.6	56.5	45.0	111.7	100.2
Adjustment for items not included in	19.2	12.9	35.9	18.3	65.9	48.3
cash flow
Income tax paid	-12.5	-9.2	-13.9	-9.3	-41.0	-36.4
Changes in working capital	-0.8	8.8	-57.3	-13.7	-38.0	5.6
Cash flow from operating activities	27.7	28.1	21.2	40.3	98.6	117.7
Net investments in non-current assets	-4.9	-6.2	-13.6	-11.4	-42.9	-40.7
Acquisitions and disposals	-6.2	-233.9	-38.6	-233.9	-36.1	-231.4
Cash flow from investing activities	-11.1	-240.1	-52.2	-245.3	-79.0	-272.1
Dividend paid to shareholders	-	-0.3	-	-18.1	-276.8	-294.9
Rights issue	-	-	298.7	-	298.7	-
Repurchase of treasury shares	-33.1	-	-33.1	-	-33.1	-
Other financing activities	11.9	216.0	-240.6	225.6	-84.6	381.6
Cash flow from financing activities	-21.2	215.7	25.0	207.5	-95.8	86.7
Cash flow for the period	-4.6	3.7	-6.0	2.5	-76.2	-67.7
Cash and cash equivalents at beginning	13.1	80.6	11.6	82.5	84.1	82.5
of period
Exchange differences on cash and cash	2.2	-0.2	5.1	-0.9	2.8	-3.2
equivalents
Cash and cash equivalents at end of the	10.7	84.1	10.7	84.1	10.7	11.6
period

Fair values on financial instruments	30 Sep 16			31 Mar 16
	Carrying			Carrying
SEKm	amount	Level 2	Level 3	amount	Level 2	Level 3
Derivatives held for trading purposes	0.8	0.8	-	-	-	-
Total financial assets at fair value per level	0.8	0.8	-	-	-	-
Derivatives held for trading purposes	-	-	-	0.8	0.8	-
Contingent considerations	11.4	-	11.4	6.4	-	6.4
Total financial liabilities at fair value per level	11.4	-	11.4	7.2	0.8	6.4

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. For currency contracts and embedded derivatives, the fair value is determined on the basis of observable market data, level 2. For the Group's other financial assets and liabilities, fair value is estimated to be the same as the carrying amount.

	12 months ending	12 months ending
Contingent considerations	30 Sep 16	31 Mar 16
Carrying amount, opening balance	6.4	-
Acquisitions during the year	11.1	6.2
Consideration paid	-6.2	-
Reversed through profit or loss	-0.4	-
Interest expenses	0.5	0.2
Exchange differences	0.0	0.0
Carrying amount, closing balance	11.4	6.4

Key financial indicators	12 months ending
	30 Sep 16	31 Mar 16	30 Sep 15	31 Mar 15	31 Mar 14
Net sales, SEKm	1,798.9	1,562.4	1,224.1	1,056.8	983.5
EBITA, SEKm	155.1	135.2	129.4	119.6	115.6
EBITA margin, %	8.6	8.7	10.6	11.3	11.8
Profit growth, EBITA, %	19.8	12.9	1.9	3.5	5.5
Return on working capital (P/WC), %	54.7	64.0	81.4	94.0	97.5
Profit for the period, SEKm	89.9	77.8	87,1	80.4	78.3
Return on equity, %*	19.5	25.5	37.7	30.1	27.7
Financial net liabilities, SEKm	313.8	537.9	662.4	18.7	13.4
Financial net liabilities/EBITDA, multiple	1.8	3.6	5.1	0.1	0.1
Net debt/equity ratio, multiple*	0.5	1.6	2.2	0.1	0.0
Equity ratio, %*	49.1	27.1	22.1	40.9	44.3
Average number of employees	434	370	317	284	276
Number of employees at end of the period	453	427	423	286	280

* Key financial indicators are calculated based on equity that includes non-controlling interests. For definitions of key financial indicators, see below.

Key financial indicators per share	12 months ending
	30 Sep 16	31 Mar 16	30 Sep 15	31 Mar 15	31 Mar 14
Earnings per share (EPS), SEK	4.13	4.15	4.58	5.06	4.90
Diluted EPS, SEK	4.13	-	-	-	-
Cash flow per share, SEK	4.53	6.27	11.04	7.58	5.70
Shareholders' equity per share, SEK*	26.92	17,60	15,21	16,46	16,98
Average number of shares after repurchases, '000s	21,770	18,749	16,850	15,892	15,892
Average number of shares adjusted for repurchases and dilution, '000s	21,770	-	-	-	-
Number of shares outstanding at end of the period, '000s	24,387	19,694	19,694	15,892	15,892

* Calculations based on proportion of equity attributable to the equity holders.

In calculating the average number of shares outstanding it was assumed that the 500,000 shares at the time of AddLife AB's formation were present throughout the reporting periods. Subsequently, the bonus element of the bonus issue carried out in July 2015 was adjusted retroactively. Since there is no listed share price for AddLife during the historical financial years, the bonus issue element was calculated based on a value per share used in the time around the non-cash issue that occurred in connection with the acquisition of Mediplast. The non-cash issue itself, carried out after the three historical financial periods, is assumed in the calculation of earnings per share to have been made at fair value and therefore does not affect earnings per share for the three periods.

Parent company summary

Income statement	3 months ending		6 months ending			12 months ending
MSEK	30 Sep 16	30 Sep 15	30 Sep 16	30 Sep 15	30 Sep 16	31 Mar 16
Net sales	5.9	-	11.8	-	16.8	5.0
Administrative expenses	-6.5	0.0	-16.4	0.0	-37.6	-21.2
Operating profit/loss	-0.6	0.0	-4.6	0.0	-20.8	-16.2
Interest income and expenses and	1.3	-1.0	0.8	-1.0	-0.9	-2.7
similar items
Profit/loss after financial items	0.7	-1.0	-3.8	-1.0	-21.7	-18.9
Appropriations	-	-	-	-	34.6	34.6
Profit/loss before taxes Income tax expense	0.7 -0.2	-1.0 0.2	-3.8 0.8	-1.0 0.2	12.9 -2.9	15.7 -3.5
Profit/loss for the period	0.5	-0.8	-3.0	-0.8	10.0	12.2
Total comprehensive income	0.5	-1.0	-3.0	-1.0	10.0	12.2
Balance sheet, SEKm				30 Sep 16	31 Mar 16	30 Sep 15
Intangible non-current assets				0.3	0.4	-
Tangible non-current assets				0.2	0.2	-
Non-current financial assets				1,118.8	960.6	773.8
Total non-current assets				1,119.3	961.2	773.8
Current receivables				49.8	75.4	0.2
Cash and bank balances				-	-	-
Total current assets				49.8	75.4	0.2
Total assets				1,169.1	1,036.6	774.0
Equity				576.8	314.2	301.2
Untaxed reserves				5.2	5.2	-
Interest-bearing long-term liabilities				202.0	360.1	-
Total long-term liabilities				202.0	360.1	301.2
Interest-bearing short-term liabilities				366.9	322.6	472.7
Non-interest-bearing short-term liabilities				18.2	34.6	-
Total short-term liabilities				385.1	357.2	472.8
Total equity and liabilities				1,169.1	1,036.6	774.0
Pledged assets				-	-	-
Contingent liabilities				-	-	-

Definitions

Return on equity	Profit/loss after tax attributable to shareholders, as a percentage of shareholders' proportion of average equity.
Profit/loss for the period Average equity Return on equity	2016-09-30 89.8 462.5 85.4/462.4 = 19.5%	2016-03-31 77.8 304.9 77.8/304.9 = 25.5%	2015-09-30 87.1 231.8 91.7/231.8 = 37.7%
Return on working capital (P/WC)	EBITA in relation to average working capital.
Operating profit before amortization of intangible assets EBITA, P Average working capital (WC)	2016-09-30 155.1 283.5	2016-03-31 135.2 211.1	2015-09-30 129.4 159.0
P/WC EBITA	155.1/283.5 = 54.7% 135.2/211.1 = 64.0% 129.5/159.0 = 81.4% Operating profit before amortization of intangible assets.
Operating profit Depriciation of intangible assets Operating profit before amortization of intangible assets	2016-09-30 117.6 37.5 155.1	2016-03-31 106.3 28.9 135.2	2015-09-30 111.9 17.5 129.4
EBITA margin	EBITA in percentage of net sales.
Operating profit before amortization of intangible assets Net sales EBITA margin	2016-09-30 155.1 1,789.9.0 155.1/1,789.9 = 8.6%	2016-03-31 135.2 1,562.4 135.2/1,562.4 = 8.7%	2015-09-30 129.4 1,224.1 129.4/1,224.1 = 10.6%
EBITDA	Operating profit before depreciation and amortization of intangible assets and property, plant and equipment.
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 previous year's EBITA divided by previous year's EBITA.
Financial net liabilities	Interest-bearing liabilities and interest-bearing provisions, less cash and cash equivalents.
Financial net liabilities/EBITDA	Financial net liabilities divided by EBITDA.
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 and they are commented on pages 1- 4.

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 08:30 a.m. CET on October 27 2016.

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