AddLife — Interim / Quarterly Report 2020

Apr 28, 2020

INTERIM REPORT 1 JANUARY – 31 MARCH 2020

" High demand and strong profit growth!"

1 JANUARY – 31 MARCH 2020 (3 MONTHS)

• Net sales increased by 25 percent to SEK 1,053 million (845), of which organic growth amounted to 12 percent and acquired growth amounted to 13 percent.
• EBITA increased by 51 percent to SEK 106 million (70), corresponding to an EBITA-margin of 10.0 percent (8.3).
• Profit after tax increased by 54 percent to SEK 54 million (35).
• Earnings per share amounted to SEK 1.92 (1.32). Earnings per share for the last 12 months amounted to 5.73 SEK (5.12).
• Cash flow from operating activities amounted to SEK 80 million (99).
• The equity ratio was 42 percent (45).
• Return on working capital (P/WC) amounted to 54 percent (51).
• On 8th of January all shares in Italian EuroClone S.p.A were acquired for the Labtech business area. The company has annual sales of about SEK 280 million.
• New credit arrangements were signed with Handelsbanken and Danske Bank, which has increased available credits with additional SEK 200 million.

		3 months ending	12 months ending
SEKm	31 Mar 20	31 Mar 19	change	31 Mar 20	31 Dec 19
Net sales	1,053	845	25%	3,687	3,479
EBITA	106	70	51%	341	305
EBITA-margin, %	10.0	8.3		9.2	8.8
Profit before tax	69	43	60%	208	182
Profit for the period	54	35	54%	161	142
Earnings per share before dilution, SEK	1.92	1.32	52%	5.73	5.12
Earnings per share after dilution, SEK	1.91	1.32	52%	5.71	5.11

AddLife in brief

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

Comments by the CEO

The Covid-19 pandemic spreading around the world during the quarter has led to major, sudden changes in society. How we live, work and socialise is challenged at the core when communities are locked down and citizens are quarantined. We have seen war-like conditions in hospitals and severe lack of medical supplies, personal protective equipment and diagnostic tests.

As a supplier of crucial medical supplies to the healthcare sector, we at AddLife have had first-hand experience of the effects of the corona crisis. Despite many challenges, we have successfully delivered large volumes of high-demand products to healthcare whose personnel have been on the frontline caring for seriously ill patients. I am humble and incredibly proud of the commitment and loyalty my colleagues have shown to customers and how they have struggled to resolve the issues in this extreme situation.

Alongside the acute crisis in healthcare, researchers are intensively searching for new cures and vaccines, while more and more countries are

beginning to think about how they will return to a more normal life. The experiences from the pandemic will change the demands for tomorrow's healthcare, home care and research in Life Science and we can expect increased demands for self-sufficiency and preparedness in many countries.

The first quarter was strong and demand for our products increased sharply as Covid-19 spread around the world. Sales rose 25 percent in the first quarter to SEK 1,053m, including organic growth of 12 percent. EBITA increased 51 percent to SEK 106 million and EBITA margin strengthened to 10.0 percent.

For most of our companies, operations changed radically as the Covid-19 outbreak hit Europe. From mid-March, demand increased sharply with higher orders from particularly health services and diagnostic laboratories. Several of our companies achieved their best-ever results in March. At the same time, it has been difficult to obtain products from various manufacturers and to get distribution to work in response to the exceptional increase in demand for similar products simultaneously, all over the world. We have worked intensively to ensure that all products meet regulatory requirements and the quality standard that healthcare expects. So far, our companies have found various innovative solutions in effort to help customers with deliveries of critical products. During the quarter, our subsidiary Mediplast received orders that were outside normal agreements from both Swedish and Norwegian customers, corresponding to about SEK 100 million, for personal protective equipment to be delivered over the next two quarters. In many countries, direct procurements are now used for Covid-19-related products to public customers.

The business situation in research varies by market. Demand from several pharmaceutical companies remains stable, while we see an increased demand from Covid-19-related research projects which received additional funding. In contrast, our academic research customers in several markets cut back on purchasing since many countries temporarily closed their colleges and universities. Demand for welfare technology in Norway and other assistive devices for home care in the Nordic markets has been high during the quarter. The trend related to the need for increased care in the home is becoming increasingly apparent.

Once again, our decentralised business model shows tremendous strength. With closeness to the market and decentralised responsibility, the companies can rapidly adjust, finding business opportunities and new solutions to best meet the current needs of the customers. A short-term focus is necessary in times of crisis but limits the potential to offer new solutions for the long-term and several procurement processes have been delayed on the market. A majority of the employees work from home and meet customers digitally, but we are limited with respect to physical meetings and providing maintenance and installation services. It is extremely rewarding to see the commitment and initiative revealed to meet the needs of customers.

Acquisitions

In January we completed the acquisition of EuroClone S.p.A in the Labtech business. The company has 58 employees and is expected to contribute annual sales of SEK 280 million. The Italian EuroClone is a leading supplier of instruments and consumables in the field of cell and molecular biology. The acquisition represents the entry into the Italian market in a segment where AddLife is already an established supplier in the Nordic market through the BioNordika companies.

AddLife is constantly searching for interesting new acquisition candidates and suppliers with Nordic and European potential, companies that drive the market in our areas Labtech and Medtech.

Kristina Willgård President and CEO

Group development in the quarter

Net sales in the quarter increased by 25 percent to SEK 1,053 million (845). Organic growth was 12 percent and acquired growth totalled 13 percent. Exchange rate changes had a marginal positive impact on net sales, corresponding to SEK 2.5 million. EBITA increased by 51 percent to SEK 106 million (70) and EBITA-margin amounted to 10.0 percent (8.3). Exchange rate changes had a positive effect on EBITA of 0.2 percent, corresponding to SEK 0.1 million. Net financial items amounted to SEK -5 million (-2) and profit after financial items amounted to SEK 69 million (43). Profit after tax for the quarter increased with 54 percent amounting to SEK 54 million (35) and the effective tax rate was 22 percent (19).

Development in the business areas

Labtech

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

		3 months ending		12 months ending
SEKm	31 Mar 20	31 Mar 19	change	31 Mar 20	31 Dec 19
Net sales	611	504	21%	2,088	1,981
EBITA	72	52	39%	222	202
EBITA-margin, %	11.8	10.3		10.6	10.2

Labtech's net sales increased by 21 percent in the first quarter to SEK 611 million (504), of which organic growth increased by 5 percent, acquired growth totalled 16 percent and exchange rate changes had a marginal positive effect. EBITA increased by 39 percent to SEK 72 million (52), corresponding to an EBITA-margin of 11.7 percent (10.3).

The trend in the Labtech business area continues to be favourable. We had strong organic growth in the diagnostics businesses, while growth in the research companies was weaker.

Demand was high in several segments within Diagnostics. Growth was primarily driven by the Covid-19 pandemic, where patient treatment requires an array of tests in addition to the Covid-19 tests that we offer the market. Hospital ICU departments in particular have increased their consumption of various tests. Our traditional segment Blood Gas Analysis, which provides important information about pulmonary function, saw strong growth in sales of new instruments, but especially in reagent consumption during the quarter. Demand for all diagnostic tests is greater than the supply from manufacturers and the delivery situation is challenging in many cases. During the quarter, reagents accounted for a higher than normal total proportion of the product mix. Growth was strongest in the diagnostics businesses in Denmark, Finland, Norway, Poland and Austria during the quarter.

Demand from research companies was robust until the Covid-19 outbreak, at which time the market radically changed. Several academic customers at universities have reduced their activity and, in several countries, the universities were closed completely. In contrast, demand from pharmaceutical companies continued to be robust, while demand from research groups working on projects related to Covid-19 increased. Demand related to food testing has also been high in several markets. For our subsidiary that delivers its own advanced instruments on an international market, the lockdown of China in February resulted in lower sales. Sales to Chinese customers account for about 30% of sales in the company. Newly acquired EuroClone has delivered according to expectations, but the situation in Italy is exactly the same as in other markets: challenging and difficult to assess moving forward. Growth in the quarter has been strongest in the research companies in Denmark and Sweden.

Medtech

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

		3 months ending		12 months ending
SEKm	31 Mar 20	31 Mar 19	change	31 Mar 20	31 Dec 19
Net sales	442	341	30%	1,599	1,498
EBITA	37	22	68%	131	116
EBITA-margin, %	8.3	6.5		8.1	7.7

For the quarter, Medtech's net sales increased by 30 percent to SEK 442 million (341), including organic growth of 22 percent and acquired growth of 8 percent, while exchange rate fluctuations had a marginally positive effect. EBITA rose by 68 percent to SEK 37 million (22) and EBITA margin amounted to 8.3 percent (6.5).

Medtech operations had a strong performance during the quarter in the Nordic region and in several of the markets in Central and Eastern Europe. The Covid-19 pandemic that struck in March has of course had a major impact on the quarter, and health services in all countries have ordered huge volumes of medical technology products and especially personal protective equipment for healthcare personnel. Thanks to our strong long-term supplier relationships, we have been able to offer our contract customers deliveries under both existing agreements as well as extra orders. In addition, we have identified new suppliers in Asia where our own quality procedures have ensured that the products meet regulatory requirements and maintain the quality standard that health services expect. The challenges are great since enormous quantities of the same type of products are in great demand all over the world. For some product groups, weekly consumption equates normal consumption for a full year. Several new participants have entered the market and the price picture changes from day to day for the products that are in greatest demand. The situation entails not only a shortage of production capacity, but also great challenges finding logistics solutions to get the products to Europe. Our subsidiary Mediplast delivered an extra order of 1 million face masks to Norway. The company also received extra orders for personal protective equipment corresponding to approximately SEK 100 million outside the usual framework agreements from Swedish customers in Region Skåne, Stockholm and Västra Götaland, as well as from Sykehusinnkjöp in Norway, to be delivered over the next two quarters. In addition to personal protective equipment, demand is strong in several other product areas during the quarter. However, we have seen a slowdown in sales of products for nonemergency surgery over the past month, as all hospital resources were dedicated to emergency and intensive care because of the pandemic. Standard surgical procedures are expected to begin in several countries at some point during the second quarter.

During the quarter, product ownership regarding the entire product portfolio from Wellspect, which was acquired in 2019, was finally registered and the product line is now approved for sale with our CE mark.

Demand and sales growth for various types of assistive equipment for use in home care were strong, completely in line with expected trends related to the increased need for eldercare. Based on the pandemic, we see orders placed earlier than expected regarding both various technical aids and welfare technology. During the quarter, we received several new Norwegian municipal contracts for our welfare technology solution. Our new Norwegian home care company, Funksjonsutstyr, had a strong start to the new year with several installations of bathroom solutions. In the Swedish market we had major deliveries of bathroom solutions that origins from our Finnish company. We see clear sales synergies between various home care companies. Our Finnish home care company continued to have a more challenging market because of delays in new construction projects for assisted living facilities in Finland.

Financial position and cash flow

At the end of the interim period the equity ratio stood at 42 percent (45). Equity per share totaled SEK 53.69 (52.27) and the return on equity at the end of the financial year was 11 percent (10). Return on working capital, P/WC (EBITA in relation to working capital) amounted to 54 percent (51).

The Group's interest-bearing net debt at the end of the interim period totalled SEK 1,102 million (902), including pension liabilities of SEK 80 million (80) and leasing liabilities of SEK 235 million (215). The net debt/equity ratio, calculated on the basis of net debt including provisions for pensions and leasing liability, totalled 0.7, compared to 0.6 at the beginning of the interim period.

Cash and cash equivalents, consisting of cash and bank balances, together with approved but non-utilised credit facilities, totalled SEK 565 (439) million on 31 March 2020. The increase in cash and cash equivalents was due to AddLife signing new credit arrangements with Handelsbanken and Danske Bank and therefore increased available credits with additional SEK 200 million.

Cash flow from operating activities reached SEK 80 million (99) during the interim period. The reduced cash flow relates to tied up working capital in inventory and trade receivables, in addition to supplier advances related to the greater deliveries of personal protective equipment due to Covid-19. Acquisitions of companies amounted to SEK 66 million (0). Investments in non-current assets during the interim period amounted to SEK 23 million (17). Disposals of non-current assets amounted SEK 2 million (1). Repurchase of treasury shares amounted to SEK 31 million (0). Exercised and issued call options amounted to SEK 0 million (8).

Employees

At the end of the interim period, the number of employees was 1,003, compared to 932 at the beginning of the financial year. During the period, implemented acquisitions led to an increase of 58 employees. The average number of employees for the last 12-month period was 927 (903).

Acquisitions

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

Acquisitions	Time	Net sales,	Number of	Business area
		SEKm*	employees*
Business from Wellspect HealthCare, Sweden	April, 2019	170	14	Medtech
Lab-Vent Controls A/S and Koldt & Ryø El A/S, Denmark	August, 2019	52	20	Labtech
Fysionord i Sollefteå, Sweden	September, 2019	6	2	Medtech
Funksjonsutstyr AS, Norway	December, 2019	50	7	Medtech
EuroClone S.p.A, Italy	January, 2020	280	58	Labtech

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

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

The effect of the acquisition on the AddLife Group's net sales was SEK 68 million, on EBITA SEK 6 million, on operating profit SEK 4 million and on profit after tax for the financial year SEK 3 million.

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

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

	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.

Shares structure

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

Share class	Number of shares
Class A shares	1,156,304
Class B shares	27,468,269
Total number of shares before repurchases	28,624,573
Of which repurchased class B shares	-690,250
Total number of shares after repurchases	27,934,323

The total number of shares in AddLife were unchanged during the interim period. Repurchase of own shares during the period amounted to 125,000 B shares with a purchase price of SEK 248.00 per share. Thereafter own holdings amount to 690,250 Class B shares corresponds to 2.4 percent of the total number of shares and 1.8 percent of the votes. The average purchase price for shares held in treasury amounts to SEK 208.48 per share. The average number of treasury shares held during the financial year was 583,107 (513,129). The share price at 31 March 2020 was SEK 287.00 and the most recent price paid for the AddLife share on 27 April 2020 was SEK 319.00.

AddLife has three outstanding call option programmes totalling 619,250 Class B shares. Issued call options for treasury shares have resulted in a calculated dilution effect based on average share price for the year of approximately 0.3 percent (0.1).

Outstanding programme	Number of options	Corresponding number of	Proportion of total shares	Exercise price	Initial exercise	Expiration period
		shares			price
2019/2023	215,000	215,000	0.8%	306.20	-	20 Jun 2022 – 28 Feb 2023
2018/2022	170,000	178,500	0.6%	224.10	234.40	16 Jun 2021 – 28 Feb 2022
2017/2021	215,000	225,750	0.8%	212.70	222.50	16 Jun 2020 – 28 Feb 2021
Total	600,000	619,250

Parent company

The Parent Company's net sales for the interim period amounted to SEK 11 million (8) and profit after financial items amounted to SEK -1 million (-2). At the end of the interim period, the Parent Company's net financial debt amounted to SEK 726 million (660). The share capital at the end of the interim period was SEK 58 million (58).

Accounting policies

This interim report was prepared in accordance with IFRS and IAS 34 Interim Financial Reporting. Information in accordance with IAS 34.16A exist, except in the financial statements and the related notes also in other parts of the interim report. The interim report for the parent company was prepared in accordance with the Swedish Annual Accounts Act (1995:1554) and the Securities Market Act (2007:528) in compliance with recommendation RFR 2 Accounting for Legal Entities of the Swedish Financial Reporting Board. The accounting policies and basis for calculations applied in the 2019 annual report for AddLife AB were also used in the interim report except for the revised accounting policies described below. The amendments to IFRSs applicable from January 1, 2020 have no effects to Addlife's financial reports for the three-month period ended March 31, 2020.

Alternative performance measures

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

Transactions with related parties

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

Events after the end of the interim period

The Board of Directors has decided to withdraw the dividend of SEK 2.40 per share and instead propose that no dividend is paid at the time for the annual general meeting. The Board sees an opportunity to call for an extraordinary general meeting later this year for deciding on a dividend for 2019.

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

Risks and uncertainties

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

Stockholm, 28 April 2020

Kristina Willgård President and CEO

Conference call

Investors, analysts and the media are invited to a conference call where CEO Kristina Willgård and CFO Martin Almgren will present the interim report. The presentation will be held in English and takes about 20 minutes, after which there will be an opportunity to ask questions.

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

The presentation will be available via the following link: https://5569958126.globalmeet.com/MartinAlmgren2 Please call on: +46 8 22 90 90 code: 327497

Financial calendar

The Annual General Meeting (AGM) of AddLife AB (publ.) will be held on 7 May 2020, Stockholm. The interim report for the period 1 January – 30 June 2020 will be published on 17 July 2020. The interim report for the period 1 January – 30 September 2020 will be published on 22 October 2020. The Year-end report for the period 1 January – 31 December 2020 will be published on 3 February 2021.

Business areas

Net sales by business area	2020				2019
Quarterly data, SEKm	Q1	Q4	Q3	Q2	Q1
Labtech	611	568	445	464	504
Medtech	442	420	357	380	341
Parent Company and Group items	-	-	-	-	-
AddLife Group	1,053	988	802	844	845
EBITA by business area	2020				2019
Quarterly data, SEKm	Q1	Q4	Q3	Q2	Q1
Labtech	72	70	41	39	52
Medtech	37	37	26	31	22
Parent Company and Group items	-3	-5	-2	-2	-4
EBITA	106	102	65	68	70
Depreciation intangible assets	-32	-29	-29	-26	-25
Operating profit	74	73	36	42	45
Finance income and expenses	-5	-6	-2	-4	-2
Profit after financial items	69	67	34	38	43

Net sales by revenue type		3 months ending 31 Mar 20		3 months ending31 Mar 19
SEKm	Labtech	Medtech	The Group	Labtech	Medtech	The Group
Products	459	384	843	363	300	663
Instruments	103	48	151	96	35	131
Service	49	10	59	45	6	51
Net Sales	611	442	1,053	504	341	845

Net sales by revenue type		12 months ending 31 Mar 20		12 months ending 31 Dec 19
SEKm	Labtech	Medtech	The Group	Labtech	Medtech	The Group
Products	1,464	1,394	2,858	1,368	1,310	2,678
Instruments	438	170	608	431	157	588
Service	186	35	221	182	31	213
Net Sales	2,088	1,599	3,687	1,981	1,498	3,479

Net sales by business area		3 months ending	12 months ending
SEKm	31 Mar 20	%	31 Mar 19	31 Mar 20	%	31 Dec 19
Labtech	611	21	504	2,088	5	1,981
Medtech	442	30	341	1,599	7	1,498
Parent Company and Group items	-		-	-		-
AddLife Group	1,053	25	845	3,687	6	3,479

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

	3 months ending					12 months ending
SEKm	31 Mar 20	%	31 Mar 19	%	31 Mar 20	%	31 Dec 19	%
Labtech	72	11.8	52	10.3	222	10.6	202	10.2
Medtech	37	8.3	22	6.5	131	8.1	116	7.7
Parent Company and Group items	-3		-4		-12		-13
EBITA	106	10.0	70	8.3	341	9.2	305	8.8
Depreciations of	-32		-25		-116		-109
intangible non-current assets
Operating profit	74	7.0	45	5.4	225	6.1	196	5.6
Financial income and expenses	-5		-2		-17		-14
Profit after financial items	69		43		208		182

Consolidated income statement, condensed

Income statement	3 months ending			12 months ending
SEKm	31 Mar 20	31 Mar 19	31 mar 20	31 Dec 19
Net sales	1,053	845	3,687	3,479
Cost of sales	-684	-557	-2,409	-2,281
Gross profit	369	288	1,279	1,198
Selling expenses	-228	-189	-816	-777
Administrative expenses	-60	-56	-237	-233
Research and Development	-6	-6	-24	-24
Other operating income and expenses	-1	8	-23	32
Operating profit	74	45	225	196
Financial income and expenses	-5	-2	-17	-14
Profit after financial items	69	43	208	182
Tax	-15	-8	-47	-40
Profit for the period	54	35	161	142
Attributable to:
Equity holders of the Parent Company	54	35	160	141
Non-controlling interests	0	0	1	1
Earnings per share (EPS) before dilution, SEK	1.92	1.32	5.73	5.12
Earnings per share (EPS) after dilution, SEK	1.91	1.32	5.71	5.11
Average number of shares after repurchases '000s	28,041	26,673	28,108	27,771
Number of shares at end of the period, '000	27,934	28,219	27,934	28,059
EBITA	106	70	341	305
Depreciations included in operating expenses
– property, plant and equipment	-35	-29	-130	-124
– intangible non-current assets from acquisitions	-27	-20	-99	-92
– other intangible non-current assets	-5	-5	-17	-17

Statement of comprehensive income	3 months ending		12 months ending
SEKm	31 Mar 20	31 Mar 19	31 Mar 20	31 Dec 19
Profit for the period	54	35	161	142
Components that may be reclassified to profit for the
period
Foreign currency translation differences for the
period	10	26	4	20
Components that will not be reclassified to profit for
the period
Revaluations of defined benefit pension plans	-	-	-12	-12
Tax attributable to items not to be reversed in profit
or loss	-	-	3	3
Other comprehensive income	10	26	-5	11
Total comprehensive income	64	61	156	153
Attributable to:
Equity holders of the Parent Company	63	61	155	152
Non-controlling interests	1	0	1	1

Consolidated Balance sheet, Condensed,	31 Mar 20	31 Dec 19	31 Mar 19
SEKm
Goodwill	1,025	972	831
Other intangible non-current assets	841	789	631
Property, plant and equipment	383	353	359
Financial non-current assets	25	24	31
Total non-current assets	2,274	2,138	1,852
Inventories	520	452	401
Current receivables	738	585	545
Cash and cash equivalents	90	99	62
Total current assets	1,348	1,136	1,008
Total assets	3,622	3,274	2,860
Total equity	1,509	1,476	1,492
Interest-bearing provisions	109	104	97
Non-interest-bearing provisions	134	127	90
Non-current interest-bearing liabilities	190	150	165
Non-current non-interest-bearing liabilities	1	1	4
Total non-current liabilities	434	382	356
Non-interest-bearing provisions	7	3	4
Current interest-bearing liabilities	893	747	427
Current non-interest-bearing liabilities	779	666	581
Total current liabilities	1,679	1,416	1,012
Total equity and liabilities	3,622	3,274	2,860

Statement of change in Group		1 Jan 20 – 31 Mar 20			1 Jan 19 – 31 Dec 19
equity, SEKm SEKm	Equity excl. non controlling interests	Non-controlling interests	Total equity	Equity excl. non controlling interests	Non-controlling interests	Total equity
Amount at beginning of period	1,467	9	1,476	931	1	932
Right Issue	-	-	-	490	-	490
Exercised and issued call options	-	-	-	12	-	12
Repurchase of treasury shares	-31	-	-31	-43	-	-43
Dividend	-	-	-	-62	-2	-64
Non-controlling interests	-	-	-	-13	9	-4
Total comprehensive income	63	1	64	152	1	153
Amount at the end of the period	1,499	10	1,509	1,467	9	1,476

Cash flow statement, condensed	3 months ending			12 months ending
SEKm	31 Mar 20	31 Mar 19	31 mar 20	31 Dec 19
Profit after financial items	69	43	208	182
Adjustment for items not included in cash flow	68	49	258	239
Income tax paid	-20	-11	-61	-52
Changes in working capital	-37	18	-24	31
Cash flow from operating activities	80	99	381	400
Net investments in non-current assets	-21	-16	-87	-82
Acquisitions and disposals	-66	-	-391	-325
Cash flow from investing activities	-87	-16	-478	-407
Dividend paid to shareholders	-	-	-62	-62
Exercised and issued call options	-	8	4	12
Right Issue	-	490	-	490
Repurchase of treasury shares	-31	-	-74	-43
Other financing activities	26	-584	255	-355
Cash flow from financing activities	-5	-86	123	42
Cash flow for the period	-12	-3	26	35
Cash and cash equivalents at beginning of period	99	61	62	61
Exchange differences on cash and cash equivalents	3	4	2	3
Cash and cash equivalents at end of the period	90	62	90	99

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

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

For quoted securities, the fair value is determined on the basis of the asset's quoted price in an active market, level 1. As at the reporting date the Group had no items in this category.

For currency contracts and embedded derivatives, the fair value is determined on the basis of observable market data, level 2. For contingent considerations, a cash-flow-based valuation is performed, which is not based on observable market data, level 3. For the Group's other financial assets and liabilities, fair value is estimated to be the same as the carrying amount.

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

Key financial indicators	12 months ending
	31 Mar 20	31 Dec 19	31 Mar 19	31 Dec 18	31 Dec 17
Net sales, SEKm	3,687	3,479	2.730	2,482	2,333
EBITA, SEKm	341	305	257	245	234
EBITA margin, %	9.2	8.8	9.4	9.9	10.0
Profit growth, EBITA, %	32	25	8	5	24
Return on working capital (P/WC), %	54	51	58	62	63
Profit for the period, SEKm	161	142	138	129	120
Return on equity, %	11	10	14	16	17
Financial net liabilities, SEKm	1,102	902	627	882	588
Financial net liabilities/EBITDA, multiple	2.3	2.1	2.2	3.3	2.3
Net debt/equity ratio, multiple	0.7	0.6	0.4	0.9	0.8
Equity ratio, %	42	45	52	35	40
Average number of employees	927	903	686	620	579
Number of employees at end of the period	1,003	932	888	873	592

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

Key financial indicators per share	12 months ending
	31 Mar 20	31 Dec 19	31 mar 19	31 Dec 18	31 Dec 17
Earnings per share (EPS), SEK	5.73	5.12	5.42	5.15	4.76
Diluted EPS, SEK	5.71	5.11	5.42	5.14	4.76
Cash flow per share from operating activities, SEK	13.56	14.40	8.51	7.05	8.21
Shareholders' equity per share, SEK	53.69	52.27	52.87	36.30	29.72
Average number of shares after repurchases, '000s	28,108	27,771	25,485	25,115	25,326
Average number of shares adjusted for repurchases and dilution, '000s	28,188	27,824	25,485	25,134	25,326
Number of shares outstanding at end of the period, '000s	27,934	28,059	28,219	25,647	25,326

The number of shares from a historical perspective has been restated to take the bonus issue into account (i.e. the value of the subscription right) in the completed new share issue, and has been used in all calculations of metrics for SEK per share. The conversion factor is 1.041.

Parent company summary

Income statement	3 months ending			12 months ending
SEKm	31 Mar 20	31 Mar 19	31 Mar 20	31 Dec 19
Net sales	11	8	44	41
Administrative expenses	-13	-12	-50	-49
Operating profit/loss	-2	-4	-6	-8
Interest income/expenses and similar items	1	2	1	2
Profit/loss after financial items	-1	-2	-5	-6
Appropriations	-	-	48	48
Profit/loss before taxes	-1	-2	43	42
Income tax expense	0	0	-6	-6
Profit/loss for the period	1	-2	43	36

Balance sheet
SEKm	31 Mar 20	31 Dec 19	31 Mar 19
Intangible non-current assets	0	0	0
Tangible non-current assets	0	0	0
Non-current financial assets	2,146	2,084	1,905
Total non-current assets	2,146	2,084	1,905
Current receivables	126	110	22
Total current assets	126	110	22
Total assets	2,272	2,194	1,927
Equity	1,123	1,152	1,216
Untaxed reserves	56	56	47
Interest-bearing long-term liabilities	45	48	56
Non-interest-bearing long-term liabilities	2	1	2
Total long-term liabilities	47	49	58
Interest-bearing short-term liabilities	1,029	899	586
Non-interest-bearing short-term liabilities	17	38	20
Total short-term liabilities	1,046	937	606
Total equity and liabilities	2,272	2,194	1,927

Pledged assets and contingent liabilities in the Group

SEKm	31 Mar 20	31 Dec 19	31 Mar 19
Contingent liabilities	43	42	42

Definitions

Return on equity	Profit/loss after tax attributable to shareholders, as a percentage of shareholders' proportion of average equity.
	2020-03-31	2019-12-31	2019-03-31
Profit/loss for the period (roll 12 months)	161	142	138
Average equity	1,480	1,362	962
Return on equity	161/1,480=11%	142/1,362=10%	138/962 = 14%
Return on working capital (P/WC)	EBITA in relation to average working capital.
	2020-03-31	2019-12-31	2019-03-31
EBITA	341	305	257
Average working capital (WC)	632	598	443
P/WC	341/632=54%	305/598=51%	257/443 = 58%
EBITA		Operating profit before amortization of intangible assets.
	2020-03-31	2019-12-31	2019-03-31
Operating profit (12 months rolling)	225	196	173
Amortization of intangible assets	116	109	84
EBITA	341	305	257
EBITA margin	EBITA in percentage of net sales.
	2020-03-31	2019-12-31	2019-03-31
EBITA	341	305	257
Net sales	3,687	3,479	2,730
EBITA margin	341/3,687=9.2%	305/3,479=8.8%	257/2,730 = 9,4%
EBITA	Operating profit before amortization of intangible assets.
EBITDA		Operating profit before depreciation and amortization.
Equity per share		Shareholders' proportion of equity divided by the number of shares outstanding at the end of the reporting period.
Cash flow per share	Cash flow from operating activities, divided by the average number of shares.
Net debt/equity ratio	Financial net liabilities in relation to shareholders' equity.
Earnings per share (EPS)	number of shares outstanding.	Shareholders' proportion of profit/loss for the year in relation to the average
Profit growth EBITA	This year's EBITA decreased by last year's EBITA divided by last year's EBITA.
Financial net liabilities	equivalents.	Interest-bearing liabilities and interest-bearing provisions, less cash and cash
Equity ratio	Equity as a percentage of total assets.

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

The comparison figures for income and expense items relate to values for the period January–March 2019 and for balance sheet items as at 31 December 2019.

This information is information that AddLife AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 8:00 a.m. CET on April 28, 2020.

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