AddLife — Interim / Quarterly Report 2020

Jul 17, 2020

Interim Report 1 January – 30 June 2020

All time high quarter with strong results

1 APRIL – 30 JUNE 2020 (3 MONTHS)

• Net sales increased by 48 percent to SEK 1,248 million (844), of which organic growth amounted to 39 percent and acquired growth amounted to 13 percent.
• EBITA increased by 167 percent to SEK 181 million (68), corresponding to an EBITAmargin of 14.5 percent (8.1).
• Profit after tax increased by 284 percent to SEK 120 million (31).
• Earnings per share amounted to SEK 1.07 (0.28).
• Cash flow from operating activities amounted to SEK 128 million (65).

1 JANUARY – 30 JUNE 2020 (6 MONTHS)

• Net sales increased by 36 percent to SEK 2,301 million (1,689), of which organic growth amounted to 25 percent and acquired growth amounted to 13 percent.
• EBITA increased by 108 percent to SEK 287 million (138), corresponding to an EBITAmargin of 12.5 percent (8.2).
• Profit after tax increased by 162 percent to SEK 174 million (66).
• Earnings per share amounted to SEK 1.55 (0.60). Earnings per share for the last 12 months amounted to 2.23 SEK (1.28).
• Cash flow from operating activities amounted to SEK 208 million (164).
• The equity ratio was 45 percent (47).
• Return on working capital (P/WC) amounted to 67 percent (53).

167 % EBITA GROWTH Q2 2020

287SEKm EBITA 6m 2020 (+108%)

	3 months ending		6 months ending			12 months ending
SEKm		30-Jun-20 30-Jun-19		change 30-Jun-20 30-Jun-19				change 30-Jun-20 31-Dec-19
Net sales	1,248	844	48%	2,301	1,689	36%	4,091	3,479
EBITA	181	68	167%	287	138	108%	454	305
EBITA-margin, %	14.5%	8.1%		12.5%	8.2%		11.1%	8.8%
Profit before tax	149	38	296%	218	81	169%	319	182
Profit for the period	120	31	284%	174	66	162%	250	142
Earnings per share before dilution, SEK	1.07	0.28	282%	1.55	0.60	158%	2.23	1.28
Earnings per share after dilution, SEK	1.06	0.28	279%	1.55	0.60	158%	2.22	1.28

AddLife in brief

AddLife is an independent provider in Life Science that offers high-quality products, services and advice to both the private and public sector in Europe. The Group is divided into two business areas: Labtech and Medtech. The Group comprises some 45 operating subsidiaries that provide equipment, instruments, medical devices and reagents, as well as advice and technical support to customers primarily in healthcare, research and academia, along with the food and pharmaceutical industries.

Comments by the CEO

AddLife has a strong offering and an attractive product portfolio, and our work to achieve the vision of improving people's lives by being a leading value-adding player within Life Science feels extremely meaningful in light of the COVID-19 pandemic. The outbreak in Europe in mid-March caused skyrocketing demand, with increased orders especially from health services and diagnostic laboratories. Demand remained high throughout the quarter both in the Nordic markets and in Central and Eastern Europe. Our companies continued to do a fantastic job and in the second quarter we see an incredible return on earnings through greatly increased volumes and restrained expenses. Sales rose 48 percent in the second quarter to SEK 1,248 million, including organic growth of 39 percent. EBITA rose 167 percent to SEK 181 million and EBITA margin strengthened to 14.5 percent. Accumulated for the entire period, sales increased by 36 percent to SEK 2,301 million and EBITA rose by 108 percent to SEK 287 million.

The pandemic had a major impact on the business situation during the quarter and initially, it was extremely challenging to provide health services and the diagnostic laboratories with all of the products they demanded to be able to provide good safe care to COVID-19 patients. There have been many alarming reports with media coverage about the personal protective equipment shortage, but demand has been at least as strong for our various diagnostic instruments and tests, as well as other medical devices.

Many countries responded to the huge global shortage of equipment by changing proven procedures and approved suppliers to instead purchase through direct procurement in hopes of gaining quick access to critical COVID-19-related products. Several new opportunistic players saw an opportunity and offered their services to the market. The exceptional demand drove up prices, and in several cases requirements for CE marking and high product quality were disregarded. Unfortunately, we can all now read about the problems that have arisen in the aftermath of this trend.

Our companies have determinedly worked to help customers as best they could with deliveries of critical products. We have also continued to pursue the important work of ensuring that our products meet high quality and regulatory standards. Given our vision and values, high quality obviously takes precedence over high quantity, while contracts take precedence over short-term maximisation of profits. I am convinced that during the quarter we strengthened our position as a long-term reliable player. At the end of the quarter, the acute crisis stabilised somewhat as the number of seriously ill COVID-19 patients decreased in most of our markets, and the supply of products has increased. Health services have also built up some inventory and we see a return to a more normal situation. The lessons learned so far during the pandemic show that in the long run we expect some changes in purchasing patterns, as well as increased demand for selfsufficiency and preparedness in several countries.

In all countries, the pandemic has resulted in longer waiting times for non-emergency surgeries, since all healthcare resources have been dedicated to emergency and intensive care. For example, in Sweden approximately 70,000 and in Italy approximately 600,000 planned surgeries have been cancelled. Several of our companies therefore had significantly lower sales of products for elective surgery

during the quarter. In June, we saw that some countries have started to permit these procedures, which will hopefully return to more normal levels after the summer.

In the middle of the quarter, several countries opened universities and colleges, and sales to academic research customers resumed. Researchers and pharmaceutical companies all over the world are intensively working on various cures and vaccines against the virus, and demand has been strong for COVID-19-related products from pharmaceutical companies, research projects and institutes that have received increased funding.

The trend regarding the need for more safe in-home care is strong and demand for welfare technology and other aids for care of the elderly at home has continued to develop favourably. However, since the opportunity for physical meetings with customers and on-site installations was limited, the final delivery of various projects was delayed during the quarter.

So far, 2020 has been an exceptional time with major changes in society. Looking ahead, we see that health services will demand tests and other medical devices relating to COVID-19 for some time to come. Meanwhile, elective surgeries will need to accelerate to reduce queues. The pandemic has undeniably strengthened awareness of the vulnerability of the global supply chain and the need for increased preparedness, as well as sustainable and more efficient health care.

A majority of our employees continue to work from home and meet customers and business partners digitally. Many of our employees have had an extremely hectic period and have done an outstanding job. I am incredibly proud of the commitment and loyalty all of my colleagues have shown to customers and AddLife.

Acquisitions

AddLife is constantly searching for interesting new acquisition candidates and suppliers with Nordic and European potential, companies that drive the market in our areas Labtech and Medtech. As a result of the COVID-19 crisis, acquisition efforts have focused on searching for and analysing interesting acquisition target to add to our pipeline in the future.

Kristina Willgård President and CEO

Group development in the quarter

Net sales in the quarter increased by 48 percent to SEK 1,248 million (844). Organic growth was 39 percent and acquired growth totalled 13 percent. Exchange rate changes had a negative impact on net sales of 4 percent, corresponding to SEK 30 million. EBITA increased by 167 percent to SEK 181 million (68) and EBITA-margin amounted to

14.5 percent (8.1). The higher margin is due increased volumes and restrained costs. The Group's EBITA has not been impacted by governmental support or other contributions related to Covid-19 pandemic. Exchange rate changes had a negative effect on EBITA, corresponding to SEK 4 million. Net financial items amounted to SEK -2 million (-4) and profit after financial items amounted to SEK 149 million (38). Profit after tax for the quarter increased with 284 percent amounting to SEK 120 million (31) and the effective tax rate was 21 percent (16). The difference in effective is due non-taxable income last year.

Group development in the interim period

Net sales in the interim period increased by 36 percent to SEK 2,301 million (1,689). Organic sales increased by 25 percent and acquired growth totalled 13 percent. Exchange rate changes had a negative effect on net sales of 2 percent, corresponding to SEK 27 million. EBITA increased by 108 percent to SEK 287 million (138) and EBITA-margin amounted to 12.5 percent (8.2). The higher margin is due to increased volumes and restrained costs. The Group's EBITA has not been impacted by governmental support or other contributions related to Covid-19 pandemic. Exchange rate changes had a negative effect on EBITA of 3 percent, corresponding to SEK 4 million. Net financial items amounted to SEK -7 million (-6) and profit after financial items increased by 169 percent to SEK 2016 2017 2018 2019 2020

218 million (81). Profit after tax for the period increased by 162 percent to SEK 174 million (66) and the effective tax rate was 20 percent (18). The difference in effective tax is due to last year's non-taxable income and revaluation of deferred tax in Norway.

2,301SEKm

NET SALES

6m 2020 (+36%)

Development in the business areas

Labtech

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

	3 months ending				6 months ending		12 months ending
MSEK	30-Jun-20	30-Jun-19	change	30-Jun-20	30-Jun-19	change	30-Jun-20	31-Dec-19
Net sales	718	464	55%	1,329	968	37%	2,342	1,981
EBITA	109	39	180%	181	91	99%	292	202
EBITA-margin, %	15.1%	8.3%		13.6%	9.4%		12.5%	10.2%

Labtech's net sales increased by 55 percent in the second quarter to SEK 718 million (464), of which organic growth increased by 37 percent, acquired growth totalled 20 percent and exchange rate changes had a negative effect of 2 percent. EBITA increased by 180 percent to SEK 109 million (39), corresponding to an EBITA-margin of 15.1 percent (8.3).

Labtech's net sales increased by 37 percent in the interim period to SEK 1,329 million (968), of which organic growth increased by 20 percent, acquired growth totalled 18 percent and exchange rate changes had a negative effect of 1 percent, corresponding to SEK 7 million. EBITA increased by 99 percent to SEK 181 million (91), corresponding to an EBITA-margin of 13.6 percent (9.4).

The Labtech business area has shown strong growth for both the quarter and the period on all geographic markets. Demand was extremely high in several segments within Diagnostics. Growth was primarily driven by the COVID-19 pandemic, since hospitalisation for other causes was reduced to a minimum. In hospital ICU departments where COVID-19 patients received treatment, consumption of various tests was extremely high to obtain information related to the condition of the patients. Our Blood Gas Analysis product area, which provides important information about pulmonary function, continued to have strong growth in sales of new instruments, but especially in reagent consumption during the second quarter. Meanwhile, most countries are conducting extensive testing of the population for COVID-19 and we have been able to offer health services large volumes of certified tests from several different manufacturers. Growth in Diagnostics was strongest in Denmark, Finland, Poland, Romania, Sweden and Austria during the quarter.

Demand from research companies was initially weaker during the quarter because colleges and universities in many countries were closed as a result of quarantine rules. When academic customers reopened in the middle of the quarter, orders quickly picked up. Since then we have had strong demand in our niche research companies in Sweden, Norway and Denmark for both instruments and products used in various research projects related to COVID-19. However, the business situation has been much weaker from academic customers in China and the US in particular with respect to our advanced instruments for material analysis. Sales to the pharmaceutical companies have continued to be robust, while demand from the food industry was weaker. Italian EuroClone, which we took over at the beginning of the year, has delivered as expected throughout the period, despite the challenging market situation in Italy.

Medtech

Companies in the Medtech business provides medical device products within the medtech market and assistive equipment within home healthcare.

	3 months ending				6 months ending		12 months ending
MSEK	30-Jun-20	30-Jun-19	change	30-Jun-20	30-Jun-19	change	30-Jun-20	31-Dec-19
Net sales	530	380	40%	972	721	35%	1,749	1,498
EBITA	76	31	148%	113	53	112%	176	116
EBITA-margin, %	14.4%	8.1%		11.6%	7.4%		10.0%	7.7%

For the quarter, Medtech's net sales increased by 40 percent to SEK 530 million (380), including organic growth of 39 percent and acquired growth of 5 percent, while exchange rate fluctuations had a negative effect of 4 percent. EBITA rose 148 percent to SEK 76 million (31) and EBITA margin amounted to 14.4 percent (8.1).

For the interim period, Medtech's net sales increased by 35 percent to SEK 972 million (721), including organic growth of 31 percent and acquired growth of 6 percent, while exchange rate fluctuations had a negative effect of 2 percent. EBITA rose 112 percent to SEK 113 million (53) and EBITA margin amounted to 11.6 percent (7.4).

Medtech operations had an extremely strong performance during the quarter both in the Nordic region and in several of the markets in Central and Eastern Europe. Because of needs related to COVID-19 this quarter we delivered huge volumes of medical supplies, especially protective equipment for staff. Thanks to long-term strong supplier relationships and new suppliers in Asia, where our own quality assurance procedures ensure that the products met high quality standards and the regulatory requirements of the Medical Device Directive, we have been able to support health services in this challenging situation.

At the beginning of the quarter, the situation was critical as the entire world simultaneously demanded the same type of products in vast quantity. A large part of the challenge involved finding viable logistics solutions, since several countries had closed their borders to transports. The situation has gradually improved over the course of the quarter as health services have built up inventory and the number of new COVID-19 cases has declined in most of our markets. The most acute phase appears to be over, though there are some concerns about a second wave. Discussions are now underway in most markets with various players regarding how health services should achieve greater preparedness for the future. Our subsidiaries Mediplast and Biomedica have both received extra orders during the quarter that are completely outside of normal framework agreements for personal protective equipment for health services. During the quarter, the extra order of about SEK 100 million for personal protective equipment to Sweden and Norway, which we reported last quarter, was delivered in full from Mediplast.

Sales of products for elective surgery have been substantially lower than normal on all markets, for which reason the percentage of proprietary products in the sales mix is unusually low. Since hospitals have dedicated all resources to emergency and intensive care related to COVID-19, queues for elective procedures have grown exponentially during the spring. In June we saw that elective surgeries resumed in more countries and should return to more normal levels after the summer. Patients have also begun to seek care again for problems other than COVID-19, but with such a large backlog prior to the summer holidays, it will take time to catch up.

Demand for welfare technology and other assistive devices for home care of the elderly in the Nordic markets continued to strengthen during the quarter. Our subsidiary Hepro received a large order during the quarter from 62 Norwegian municipalities for medicine dispensers to be used in eldercare. The trend relating to the need for increased, safe in-home care is strong, but several of our companies saw delays in projects during the quarter since opportunities for physical meetings with customers and on-site installations have been limited during the pandemic.

Financial position and cash flow

At the end of the interim period the equity ratio stood at 45 percent (45). Equity per share totaled SEK 14.34 (13.07) and the return on equity at the end of the financial year was 17 percent (10). Return on working capital, P/WC (EBITA in relation to working capital) amounted to 67 percent (51).

The Group's interest-bearing net debt at the end of the interim period totalled SEK 963 million (902), including pension liabilities of SEK 80 million (80) and leasing liabilities of SEK 229 million (215). The net debt/equity ratio, calculated on the basis of net debt including provisions for pensions and leasing liability, totalled 0.6, which is unchanged compared to the beginning of the interim period.

Cash and cash equivalents, consisting of cash and bank balances, together with approved but non-utilised credit facilities, totalled SEK 687 (439) million on 30 June 2020. The increase in cash and cash equivalents was due to AddLife signing new credit arrangements with Handelsbanken and Danske Bank and therefore increased available credits with additional SEK 200 million to a total of SEK 1,200 million.

Cash flow from operating activities reached SEK 208 million (164) during the interim period. The cash flow has been effected by tied up capital in advances to suppliers for bigger delivieries of personel protective equipment related to Covid-19. Furthermore, the increased sales has led to tied up captial in trade receivables and inventories to guarantee future deliveries. Acquisitions of companies amounted to SEK 66 million (167). Investments in non-current assets during the interim period amounted to SEK 39 million (35). Disposals of non-current assets amounted to

SEK 4 million (2). Repurchase of treasury shares amounted to SEK 31 million (0). Exercised and issued call options amounted to SEK 32 million (8) and paid dividend was SEK 0 million (62).

Acquisitions

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

			Business
Time	SEKm*	employees*	area
	170	14	Medtech
Augusti, 2019	52	20	Labtech
	6	2	Medtech
December, 2019	50	7	Medtech
Januari, 2020	280	58	Labtech
	April, 2019 September, 2019	Net Sales,	Number of

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

On 28 November 2019 AddLife signed an agreement on the acquisition of 100 percent of the shares in EuroClone S.p.A, the acquisition became effective a of 8 January 2020. The company is expected to contribute about SEK 280 million to annual sales. The Italian EuroClone is a leading supplier of instruments and consumables in the field of cell and molecular biology in Italy. The acquisition represents AddLife's entry into the Italian market in a segment in which the company is already an established supplier in the Nordic market.

The effect of the acquisition on the AddLife Group's net sales was SEK 148 million, on EBITA SEK 13 million, on operating profit SEK 8 million and on profit after tax for the financial year SEK 4 million.

The fair value of not yet paid contingent consideration for acquisitions made during the financial year is calculated to SEK 14 million, which is approximately 84 percent of the maximum outcome. The outcome depends on the results achieved in the companies and has a set maximum level.

According to the preliminary acquisition analyses, the assets and liabilities included in the acquisitions carried out during the interim period 2020 were as follows:

	Fair value
Intangible non-current assets	72
Other non-current assets	13
Inventories	33
Other current assets	99
Deferred tax liability/tax asset	-19
Other liabilities	-147
Acquired net assets	51
Goodwill	44
Consideration 1)	95
Less cash and cash equivalents in acquired businesses	-15
Contingent consideration not yet paid	-14
Effect on the Group's cash and cash equivalents	66

1) The consideration is stated excluding acquisition expenses.

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

The Share

The share capital at the end of the interim period amounted to SEK 58 million (58).

At the annual general meeting on May 7, 2020, it was resolved on a share split 4:1. After the split the total number of shares amounts to 114,498,292 of which 4,625,216 Class A shares and 109,873,076 Class B shares. The new shares were registered on the shareholder's accounts on May 29, 2020.

The number of repurchased own shares amounts to 2,374,600 Class B, corresponding to

2.1 percent of the total number of shares and 1.5 percent of the votes. The average purchase price for shares held in treasury amounts to SEK 52.12 per share. The average number of treasury shares held during the interim period was 2,533,007 (1,666,560). The share price at 30 June 2020 was SEK 98.50 and the most recent price paid for the AddLife share on 16 July 2020 was SEK 118.00.

Turnover and trading	Jan-Jun 2020
Lowest price, SEK	59.75
Highest price, SEK	98.50
Average daily turnover, SEK	4,802,102
Number of traded shares, no	7,680,833
Number of transactions, no	23,690

AddLife has three outstanding call option programmes totalling 3,090,600 Class B shares. Issued call options for treasury shares have resulted in a calculated dilution effect based on average share price for the year of approximately 0.5 percent (0.1). 92,000 options out of 215,000 options from the 2017/2021 program have been exercised during the quarter, corresponding to 386,400 Bshares.

		Corresponding
Outstanding	Number of	number of	Proportion of total	Exercise
program	options	B-shares	shares	price	Expiration period
2020/2024	250,000	1,000,000	0.9%	98.40	19 jun 2023 - 28 feb 2024
2019/2023	215,000	860,000	0.8%	76.60	20 Jun 2022 – 28 Feb 2023
2018/2022	170,000	714,000	0.6%	56.00	16 Jun 2021 – 28 Feb 2022
2017/2021	123,000	516,600	0.5%	53.20	16 Jun 2020 – 28 Feb 2021
Totalt	758,000	3,090,600

On 30 June 2020 the number of share holdes amounted to 4,831, where of 52 percent are Swedish owners with respect to capital share. The 10 biggest shareholders controlled 58 percent of number of capital and 67 percent of votes.

			Share in %
Shareholders 2020-06-30	Class A-shares	Class B-shares	of capital	of votes
Roosgruppen AB	2,156,572	7,090,564	8.08	18.36
Tom Hedelius	2,066,572	23,140	1.83	13.25
Verdipapirfond Odin	0	11,037,084	9.64	7.07
SEB Fonder	0	9,707,448	8.48	6.22
State Street Bank & Trust Company	0	8,616,832	7.53	5.52
Swedbank Fonder	0	7,847,167	6.85	5.03
NTC Fidelity Funds Northern Trust	0	6,478,044	5.66	4.15
J.P. Morgan Chase & Co	0	4,595,236	4.01	2.94
Lannebo Fonder	0	3,453,195	3.02	2.21
HSBC Trinkhaus and Burkhardt AG	0	2,867,368	2.50	1.84
Total the 10 biggest shareholders	4,223,144	61,716,078	57.59	66.59
Other shareholders	402,588	45,782,398	40.34	31.89
Total outstanding shares	4,625,732	107,498,476	97.93	98.48
Repurchased own shares Class B	-	2,374,600	2.07	1.52
Total registered shares	4,625,732	109,873,076	100.00	100.00

Source: Euroclear

Employees

At the end of the interim period, the number of employees was 985, compared to 932 at the beginning of the financial year. During the period, the acquisition of EuroClone led to an increase of 58 employees. The average number of employees for the last 12 month period was 949 (903).

Parent company

The Parent Company's net sales for the interim period amounted to SEK 21 million (18) and profit after financial items amounted to SEK -1 million (-3). At the end of the interim period, the Parent Company's net financial debt amounted to SEK 575 million (660). The share capital at the end of the interim period was SEK 58 million (58).

Accounting policies

This interim report was prepared in accordance with IFRS and IAS 34 Interim Financial Reporting. Information in accordance with IAS 34.16A exist, except in the financial statements and the related notes also in other parts of the interim report. The interim report for the parent company was prepared in accordance with the Swedish Annual Accounts Act (1995:1554) and the Securities Market Act (2007:528) in compliance with recommendation RFR 2 Accounting for Legal Entities of the Swedish Financial Reporting Board. The accounting policies and basis for calculations applied in the 2019 annual report for AddLife AB were also used in the interim report except for the revised accounting policies described below. The amendments to IFRSs applicable from January 1, 2020 have no effects to Addlife's financial reports for the interim period ended June 30, 2020.

Alternative performance measures

AddLife presents certain financial measures in the interim report that are not defined according to IFRS. The Company believes that these measures provide valuable supplemental information to investors and the Company's management as they allow for evaluation of trends and the Company's performance. Since all companies do not calculate financial measures in the same way these are not always comparable to measures used by other companies. These financial measures should therefore not be considered as a replacement for measurements as defined under IFRS. This report provides information in greater detail regarding definitions of financial performance measures.

Transactions with related parties

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

Events after the end of the interim period

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

Risks and uncertainties

AddLife's earnings and financial position, as well as its strategic position, are affected by various internal factors within AddLife's control and various external factors over which AddLife has limited influence. AddLife's most significant external risks are the state of the economy and market trends combined with public sector contracts and policy decisions, as well as competition. The risks and uncertainties are the same as in previous periods. For more information, see the section "Risks and uncertainties" in the administration report (page 32-36), in AddLife's annual report 2019. The Parent Company is indirectly affected by the above risks and uncertainties through its function in the Group.

Stockholm 17 July 2020

Kristina Willgård President and CEO

Conference call

The teleconference will be at 10:00 a.m. on 17 July 2020. The presentation will be available via the following link: https://5569958126.globalmeet.com/MartinAlmgren2 Please call on: +46 8 22 90 90 code: 327497 The presentation is also available on AddLife's YouTube channel, see link: Addlife YouTube Investors, analysts and the media are invited to a conference call where CEO Kristina Willgård and CFO

Financial calendar

The interim report for the period 1 January - 30 September 2020 will be published on 21 October 2020. The Year-end report for the period 1 January - 31 December 2020 will be published on 3 February 2021.

Affirmation

The Board of Directors and the President deem that the interim report gives a true and fair picture of the Company's and

Stockholm 17 July 2020

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

Eva Nilsagård Andreas Göthberg Stefan Hedelius Director Director Director

Kristina Willgård President and CEO

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

Business areas

Net sales by business area		2020				2019
Quarterly data, SEKm	Q2	Q1	Q4	Q3	Q2	Q1
Labtech	718	611	568	445	464	504
Medtech	530	442	420	357	380	341
Parent Company and Group items	-	-	-	-	-	-
AddLife Group	1,248	1,053	988	802	844	845

EBITA by business area		2020				2019
Quarterly data, SEKm	Q2	Q1	Q4	Q3	Q2	Q1
Labtech	109	72	70	41	39	52
Medtech	76	37	37	26	31	22
Parent Company and Group items	-4	-3	-5	-2	-2	-4
EBITA	181	106	102	65	68	70
Depreciation intangible assets	-30	-32	-29	-29	-26	-25
Operating profit	151	74	73	36	42	45
Finance income and expenses	-2	-5	-6	-2	-4	-2
Profit after financial items	149	69	67	34	38	43

Net sales by revenue type	3 months ending		6 months ending		12 months ending
SEKm	30-Jun-20	30-Jun-19		30-Jun-19	30-Jun-20	31-Dec-19
Products
Labtech	539	340	998	703	1,663	1,368
Medtech	465	334	849	634	1,525	1,310
The Group	1,004	674	1,847	1,337	3,188	2,678
Instruments
Labtech	138	93	241	189	483	431
Medtech	64	41	111	76	192	157
The Group	202	134	352	265	675	588
Service
Labtech	41	31	90	76	196	182
Medtech	1	5	12	11	32	31
The Group	42	36	102	87	228	213
Total	1,248	844	2,301	1,689	4,091	3,479

Net sales by business area	3 months ending		6 months ending			12 months ending
SEKm	30-Jun-20		% 30-Jun-19	30-Jun-20		% 30-Jun-19	30-Jun-20		% 31-Dec-19
Labtech	718	55	464	1,329	37	968	2,342	37	1,981
Medtech	530	40	380	972	35	721	1,749	40	1,498
Parent Company and Group items	-		-	-		-	-		-
AddLife Group	1,248	48	844	2,301	36	1,689	4,091	39	3,479

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

	3 months ending			6 months ending				12 months ending
SEKm	30-Jun-20		% 30-Jun-19		% 30-Jun-20		% 30-Jun-19		% 30-Jun-20		% 31-Dec-19	%
Labtech	109	15.1		39 8.3	181	13.6		91 9.4	292	12.5		202 10.2
Medtech	76	14.4		31 8.1	113	11.6		53 7.4	176	10.0	116	7.7
Parent Company and Group items	-4		-2		-7		-6		-14		-13
EBITA	181	14.5		68 8.1	287	12.5	138 8.2		454	11.1	305	8.8
Depreciations of intangible non-current assets	-30		-26		-62		-51		-120		-109
Operating profit	151	12.1		42 4.9	225	9.8		87 5.2	334	8.2	196	5.6
Financial income and expenses	-2		-4		-7		-6		-15		-14
Profit after financial items	149		38		218		81		319		182

Consolidated income statement, condensed

Income statement	3 months ending		6 months ending		12 months ending
MSEK		30-Jun-20 30-Jun-19 30-Jun-20 30-Jun-19 30-Jun-20 31-Dec-19 sss
Net sales	1,248	844	2,301	1,689	4,091	3,479
Cost of sales	-836	-553	-1,520	-1,110	-2,691	-2,281
Gross profit	412	291	781	579	1,400	1,198
Selling expenses	-209	-193	-437	-382	-832	-777
Administrative expenses	-60	-60	-120	-116	-237	-233
Research and Development	-5	-6	-11	-12	-23	-24
Other operating income and expenses	13	10	12	18	26	32
Operating profit	151	42	225	87	334	196
Financial income and expenses	-2	-4	-7	-6	-15	-14
Profit after financial items	149	38	218	81	319	182
Tax	-29	-7	-44	-15	-69	-40
Profit for the period	120	31	174	66	250	142
Attributable to:
Equity holders of the Parent Company	119	31	173	66	248	141
Non-controlling interests	1	0	1	0	2	1
Earnings per share (EPS) before dilution, SEK	1.07	0.28	1.55	0.60	2.23	1.28
Earnings per share (EPS) after dilution, SEK	1.06	0.28	1.55	0.60	2.22	1.28
Average number of shares after repurchases '000s	111,765	112,878	111,965	109,803	112,154	111,083
Number of shares at end of the period, '000	112,124	112,878	112,124	109,803	112,124	111,297
EBITA	181	68	287	138	454	305
Depreciations included in operating expenses - property, plant and equipment - intangible non-current assets from acquisitions - other intangible non-current assets	-36 -27 -3	-31 -22 -4	-71 -54 -8	-60 -42 -9	-135 -104 -16	-124 -92 -17

Statement of comprehensive income	3 months ending		6 months ending		12 months ending
SEKm		30-Jun-20 30-Jun-19 30-Jun-20 30-Jun-19 30-Jun-20 31-Dec-19
Profit for the period	120	31	174	66	250	142
Components that may be reclassified to profit for the period
Foreign currency translation differences for the period	-40	14	-30	40	-50	20
Components that will not be reclassified to profit for the period
Revaluations of defined benefit pension plans	-	-	-	-	-12	-12
Tax attributable to items not to be reversed in profit or loss	-	-	-	-	3	3
Other comprehensive income	-40	14	-30	40	-59	11
Total comprehensive income	80	45	144	106	191	153
Attributable to:
Equity holders of the Parent Company	80	45	143	106	189	152
Non-controlling interests	0	0	1	0	2	1

Consolidated Balance sheet, Condensed, SEKm	30-Jun-20	31-Dec-19	30-Jun-19
Goodwill	1,007	972	910
Other intangible non-current assets	800	789	726
Property, plant and equipment	370	353	354
Financial non-current assets	24	24	34
Total non-current assets	2,201	2,138	2,024
Inventories	563	452	440
Current receivables	779	585	576
Cash and cash equivalents	54	99	69
Total current assets	1,396	1,136	1,085
Total assets	3,597	3,274	3,109
Total equity	1,619	1,476	1,475
Interest-bearing provisions	106	104	98
Non-interest-bearing provisions	123	127	108
Non-current interest-bearing liabilities	188	150	151
Non-current non-interest-bearing liabilities	1	1	1
Total non-current liabilities	418	382	358
Non-interest-bearing provisions	7	3	2
Current interest-bearing liabilities	723	747	664
Current non-interest-bearing liabilities	830	666	610
Total current liabilities	1,560	1,416	1,276
Total equity and liabilities	3,597	3,274	3,109

		1 Jan 20 – 30 Jun 20		1 Jan 19 – 31 Dec 19
Statement of change in Group equity, SEKm	Equity excl. non controlling interests	Non controlling interests	Total equity	Equity excl. non controlling interests	Non controlling interests	Total equity
Amount at beginning of period	1,467	9	1,476	931	1	932
Right Issue	-	-	-	490	-	490
Exercised and issued call options	32	-	32	12	-	12
Repurchase of treasury shares	-31	-	-31	-43	-	-43
Dividend	-	-2	-2	-62	-2	-64
Non-controlling interests	-2	2	-	-13	9	-4
Total comprehensive income	143	1	144	152	1	153
Amount at the end of the period	1,609	10	1,619	1,467	9	1,476

Cash flow statement, condensed	3 months ending		6 months ending		12 months ending
SEKm			30-Jun-20 30-Jun-19 30-Jun-20 30-Jun-19 30-Jun-20 31-Dec-19
Profit after financial items	149	38	218	81	319	182
Adjustment for items not included in cash flow	80	58	148	107	280	239
Income tax paid	-12	-18	-32	-29	-55	-52
Changes in working capital	-89	-13	-126	5	-100	31
Cash flow from operating activities	128	65	208	164	444	400
Net investments in non-current assets	-14	-17	-35	-33	-84	-82
Acquisitions and disposals	0	-167	-66	-167	-224	-325
Cash flow from investing activities	-14	-184	-101	-200	-308	-407
Dividend paid to shareholders	-	-62	-	-62	-	-62
Exercised and issued call options	32	-	32	8	36	12
Right Issue	-	-	-	491	-1	490
Repurchase of treasury shares	-	-	-31	-	-74	-43
Other financing activities	-173	186	-147	-399	-103	-355
Cash flow from financing activities	-141	124	-146	38	-142	42
Cash flow for the period	-27	5	-39	2	-6	35
Cash and cash equivalents at beginning of period	90	62	99	61	69	61
Exchange differences on cash and cash equivalents	-9	2	-6	6	-9	3
Cash and cash equivalents at end of the period	54	69	54	69	54	99

Fair values on financial instruments	30-Jun-20	31-Dec-19
SEKm	Carrying amount	Level 2	Level 3	Carrying amount	Level 2	Level 3
Derivatives measured at fair value through profit or loss	1	1	0	0	0	-
Total financial assets at fair value per level	1	1	0	0	0	-
Derivatives measured at fair value through profit or loss	0	0	0	1	1	-
Contingent considerations	31	-	31	18	-	18
Total financial liabilities at fair value per level	31	0	31	19	1	18

The fair value and carrying amount are recognized in the balance sheet as shown in the table above. For quoted securities, the fair value is determined on the basis of the asset's quoted price in an active market, level 1. As at the reporting date the Group had no items in this category.

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

For contingent considerations, a cash-flow-based valuation is performed, which is not based on observable market data, level 3. For the Group's other financial assets and liabilities, fair value is estimated to be the same as the carrying amount.

Contingent considerations,	6 months ending 3 months ending			12 months ending
SEKm			30-Jun-20 30-Jun-19 30-Jun-20 30-Jun-19 30-Jun-20 31-Dec-19
Carrying amount, opening balance	18	8	18	9	9	9
Acquisitions during the period	14	-	14	-	32	18
Consideration paid	-	-	-	-	-	-
Reversed through profit or loss	-	-	-	-2	-9	-9
Interest expenses	-	-	-	0	-	0
Exchange differences	-1	-	-1	1	-1	0
Carrying amount, closing balance	31	8	31	8	31	18

	12 months ending
Key financial indicators		30-Jun-20 31-Dec-19			30-Jun-19 31-Dec-18 31-Dec-17 31-Dec-16
Net sales, SEKm	4,091	3,479	2,952	2,482	2,333	1,938
EBITA, SEKm	454	305	262	245	234	189
EBITA margin, %	11.1%	8.8%	8.9%	9.9%	10.0%	9.7%
Profit growth, EBITA, %	73%	25%	8%	5%	24%	47%
Return on working capital (P/WC), %	67%	51%	53%	62%	63%	62%
Profit for the period, SEKm	250	142	135	129	120	112
Return on equity, %	17%	10%	12%	16%	17%	21%
Financial net liabilities, SEKm	963	902	844	882	588	366
Financial net liabilities/EBITDA, multiple	1.6	2.1	2.9	3.3	2.3	1.8
Net debt/equity ratio, multiple	0.6	0.6	0.6	0.9	0.8	0.5
Equity ratio, %	45%	45%	47%	35%	40%	45%
Average number of employees	949	903	754	620	579	452
Number of employees at end of the period	985	932	908	873	592	545

Key indicators include IFRS 16 from 2019, comparative figures have not been restated. For definitions of key financial indicators, see page 17.

	12 months ending
Key financial indicators per share		30-Jun-20 31-Dec-19			30-Jun-19 31-Dec-18 31-Dec-17 31-Dec-16
Earnings per share (EPS), SEK	2.23	1.28	1.28	1.29	1.19	1.22
Diluted EPS, SEK	2.22	1.28	1.28	1.29	1.19	1.22
Cash flow per share from operating activities, SEK	3.96	3.61	2.21	1.76	2.05	1.39
Shareholders' equity per share, SEK	14.34	13.07	14.04	9.08	7.43	7.06
Average number of shares after repurchases, '000s	112,154	111,083	104,981	100,458	101,302	97,729
Average number of shares adjusted for repurchases and dilution, '000s	112,441	111,297	104,981	100,458	101,302	97,729
Number of shares outstanding at end of the period, '000s	112,124	112,237	112,877	102,586	100,682	101,577

The number of shares from a historical perspective has been restated to take the bonus issue into account (i.e. the value of the subscription right) in the completed new share issue in 2019, as well as the share split (1:4) completed in May 2020 and has been used in all calculations of metrics for SEK per share. The conversion factor is 4.041.

Pledged assets and contingent liabilities in the Group, SEKm	30-Jun-20	31-Dec-19	30-Jun-19
Contingent liabilities	43	42	42

Reconciliation key ratios

Return on equity	Profit/loss after tax attributable to shareholders, as a percentage of shareholders' proportion of average equity.
		30-Jun-20	31-Dec-19	30-Jun-19
Profit/loss for the period (roll 12 months)		250	142	135
Average equity		1,547	1,362	1,096
Return on equity		250/1,547=17%	142/1,362=10%	135/1,096= 12%
Return on working capital (P/WC) EBITA in relation to average working capital. 30-Jun-20 31-Dec-19 30-Jun-19
EBITA		454	305	262
Average working capital (WC)		680	598	495
P/WC		454/680=67%	305/598=51%	262/495= 53%
EBITA Operating profit before amortization of intangible assets. 30-Jun-20 31-Dec-19 30-Jun-19
Operating profit (12 months rolling)		334	196	172
Amortization of intangible assets		120	109	90
EBITA		454	305	262

EBITA marginal	EBITA in percentage of net sales.
	30-Jun-20	31-Dec-19	30-Jun-19
EBITA	454	305	262
Net sales	4,091	3,479	2,952
EBITA margin	454/4,091= 11.1%	305/3,479= 8.8%	262/2,952= 8.9%

Definitions

EBITA	Operating profit before amortization of intangible assets.
EBITDA	Operating profit before depreciation and amortization
Equity per share	Shareholders' proportion of equity divided by the number of shares outstanding at the end of the reporting period
Cash flow per share	Cash flow from operating activities, divided by the average number of shares.
Net debt/equity ratio	Financial net liabilities in relation to shareholders' equity
Earnings per share (EPS)	Shareholders' proportion of profit/loss for the year in relation to the average number of shares outstanding
Profit growth EBITA	This year's EBITA decreased by last year's EBITA divided by last year's EBITA.
Financial net liabilities	Interest-bearing liabilities and interest-bearing provisions, less cash and cash equivalents.
Equity ratio	Equity as a percentage of total assets.

The key figures presented above are central in order to understand and evaluate AddLifes business and financial position. The key figures are presented in the "Key financial indicators" table on page 14 and they are commented on pages 1-5.

The comparison figures for income and expense items relate to values for the period January–June 2019 and for balance sheet items as at 31 December 2019 if nothing else is stated.

Parent company summary

Income statement	3 months ending		6 months ending		12 months ending
SEKm			30-Jun-20 30-Jun-19 30-Jun-20 30-Jun-19 30-Jun-20 31-Dec-19
Net sales	10	10	21	18	44	41
Administrative expenses	-15	-13	-28	-25	-50	-49
Operating profit/loss	-5	-3	-7	-7	-6	-8
Interest income/expenses and similar items	5	2	6	4	1	2
Profit/loss after financial items	0	-1	-1	-3	-5	-6
Appropriations	-	-	-	-	48	48
Profit/loss before taxes	0	-1	-1	-3	43	42
Income tax expense	0	1	0	1	-6	-6
Profit/loss for the period	0	0	-1	-2	43	36

Balance sheet, SEKm	30-Jun-20	31-Dec-19	30-Jun-19
Intangible non-current assets	0	0	0
Tangible non-current assets	0	0	0
Non-current financial assets	2,026	2,084	1,963
Total non-current assets	2,026	2,084	1,963
Current receivables	134	110	36
Total current assets	134	110	36
Total assets	2,160	2,194	1,999
Equity	1,144	1,152	1,152
Untaxed reserves	56	56	47
Interest-bearing long-term liabilities	65	48	49
Non-interest-bearing long-term liabilities	4	1	2
Total long-term liabilities	69	49	51
Interest-bearing short-term liabilities	874	899	734
Non-interest-bearing short-term liabilities	17	38	15
Total short-term liabilities	891	937	749
Total equity and liabilities	2,160	2,194	1,999

This information is information that AddLife AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 8:00 a.m. CET on July 17, 2020.

AddLife AB (publ), Box 3145, Brunkebergstorg 5, SE-103 62 Stockholm. info@add.life, www.add.life, org.nr. 556995-8126