AddLife — Interim / Quarterly Report 2022

Apr 28, 2022

Interim report 1 January – 31 March 2022

A successful quarter!

1 JANUARY – 31 MARCH 2022 (3 MONTHS)

• Net sales increased by 49 percent to SEK 2,579m (1,736), of which acquired growth amounted to 51 percent. The organic growth, excluding net sales related to COVID-19, was 5 percent. The COVID-19 related net sales decreased by 25 percent.
• EBITA increased by 34 percent to SEK 435m (326), corresponding to an EBITAmargin of 16.9 percent (18.8).
• Profit after tax decreased by 0.9 percent to SEK 225m (226).
• Earnings per share amounted to SEK 1.85 (2.01). Earnings per share for the last 12 months amounted to SEK 5.91 (6.16).
• Cash flow from operating activities amounted to SEK 332m (184).
• The equity ratio was 37 percent (40).
• Return on working capital (P/WC) amounted to 86 percent (95).
• During the quarter, the previously announced acquisitions of MBA Incorporado S.L and Telia Health Monitoring were completed and after the end of the quarter, two more acquisitions, BioCat GmBh and O'Flynn Medical Ltd, were completed. In total, these acquisitions are estimated to contribute with annual net sales of approximately SEK 830m and approximately 350 employees.
• From 3 January 2022, AddLife AB's share has been moved to the Large Cap segment on Nasdaq Stockholm's market.
• AddLife's president and CEO Kristina Willgård has announced her resignation and after the end of the quarter, Fredrik Dalborg was appointed new President and CEO. Fredrik starts during the fourth quarter.

		3 months ending			12 months ending
SEKm	31 Mar 22	31 Mar 21 change		31 Mar 22	31 Dec 21
Net sales	2,579	1,736	49%	8,836	7,993
EBITA	435	326	34%	1,382	1,273
EBITA-margin, %	16.9%	18.8%		15.7%	15.9%
Profit before tax	289	287	1%	929	927
Profit for the period	225	226	0%	720	721
Earnings per share before dilution, SEK	1.85	2.01	-8%	5.91	6.03
Earnings per share after dilution, SEK	1.84	2.00	-8%	5.88	6.01

NET SALES (SEKM)

EBITA (SEKM)

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 85 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.

CONFERENCE CALL

Investors, analysts and the media are invited to a conference call where CEO Kristina Willgård 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. It will be recorded and made available online. If this is your first time using Teams, you will be asked to download an app.

The teleconference will be at 10:00 a.m. on April 28th, 2022

If you wish to participate via teleconference, please follow this link>> Or call in (only sound) +46 8 505 376 58 Conferens-ID: 862 373 160#

The presentation is also available on AddLife YouTube >>

Comments by the CEO

We start 2022 with a strong first quarter, where sales increased by 49 percent to SEK 2,579 million and EBITA increased by 34 percent to SEK 435 million, resulting in an EBITA margin of 16.9 percent. This growth comes mainly from recent years' acquisitions and the strong expansion in Europe. Over the past year, we have strategically reinvested a part of our revenue from COVID-19-related sales into new acquisitions and created a robust European platform to enhance our ability to deliver growth in the coming years. The acquisitions increased net sales in the quarter by SEK 893 million and strengthened the EBITA margin.

It is now about two years since the start of the COVID-19 pandemic and the spread of infection continues to affect our communities and the ability of our businesses to operate in the market, generating both positive and negative effects. Organic growth excluding COVID-19 related sales totalled 5 percent, while COVID-19-related sales decreased by 25 percent to SEK 459 million. With the expected decrease of COVID-19 sales, the total organic growth decreased by 6 percent in the quarter.

At the beginning of the quarter, the surge of the omicron variant continued to drive high sales of PCR tests. Omicron led to high infection rates among hospital staff, which limited the possibility of various treatments and fewer planned surgical procedures could be performed. Surgery queues therefore continued to grow in many countries.

By the end of the quarter, case rates had decreased again in many countries and we saw a return to a more normal market. Future sales of COVID-19-related products will be entirely dependent on how the pandemic evolves. Our expectation is that the pandemic will subside over the course of the year and that growth will instead come from the product segments that have been weaker over the past few years. The speed of recovery largely depends on how well health services can cope with the hospital staff shortage.

Global supply chain challenges are affecting several of our companies. Shortages of raw materials and components, as well as increased shipping costs, have caused disruptions and lead times are generally longer. In some companies, we have therefore increased our stocks in order to continue to provide customers with a high level of service. So far, our companies have been able to manage the increased costs and secure margins by compensating with price adjustments in both existing and new customer contracts.

The Labtech business area had good growth in the quarter and underlying organic growth excluding COVID-19 was 8 percent. Our Nordic diagnostics companies delivered high volumes of PCR tests at the beginning of the quarter, which slowed down towards the end of the quarter. Testing is now largely limited to patients requiring hospital care and hospital staff. Sales of non-COVID products increased again at the end of the quarter, both to diagnostic laboratories and to our research customers.

The strong growth in Medtech comes from our acquisitions, which have developed as expected. Organic growth excluding COVID-19 was 1 percent. Sales of elective surgery products were relatively weak in most companies at the beginning of the quarter, but increased as case rates dropped. Sales growth for other medical device products was robust throughout the quarter. In the end of the quarter our home care companies also saw an increased demand.

Continued acquisition activity

During the first quarter, we completed the acquisitions of MBA Incorporado and Telia Health Monitoring. MBA Incorporado is a leading Spanish player in orthopaedic and emergency surgery with business operations in Spain, Italy and Portugal. The company has sales of approximately SEK 670 million and 285 employees. Telia Health Monitoring develops and delivers a digital platform solution that enables self-monitoring for patients with chronic diseases such as heart failure, hypertension, COPD, diabetes and chroncial inflammatory bowle desease (IBD). The business, with its seven employees, has been integrated into Camanio.

After the end of the quarter, on 1 April, we acquired O'Flynn Medical, a specialist distributor that sells and leases products and technical services to the hospital sector, private customers and care homes in Ireland. O'Flynn has sales of approximately SEK 64 million and 36 employees. The company will become part of Healthcare 21, which the Medtech business area acquired in 2021.

On 1 April, the German company BioCat was also acquired, which has sales of around SEK 90 million and 20 employees. BioCat markets and sells a broad portfolio of instruments and reagents in the fast-growing fields of genomics, proteomics and cell biology to research-focused customers. The acquisition strengthens AddLife's presence in Germany and opens up opportunities for collaboration with our other companies operating in the same product segment.

In conclusion, we sum up another successful quarter for AddLife. We are currently working hard to integrate our acquisitions and ensure that our new employees learn about our vision and corporate philosophy through the AddLife Academy. We are also working to build networks between our companies so that we can share all of our expertise to further develop our businesses in their respective niches.

At the time of publication, the tragic war in Ukraine has been going on for more than two months. We have no personnel of our own or other direct exposure to Russia or Ukraine and the economic impact of the war is limited. On a compassionate level, we feel great sorrow and sympathy for those affected and we have donated medical equipment to Ukraine, worth around SEK 7 million, for emergency and intensive care this quarter. Several of our subsidiaries in Eastern Europe are also running initiatives to help refugees from Ukraine with housing, food and supplies.

Kristina Willgård President and CEO

Group development in the quarter

Net sales in the quarter increased by 49 percent to SEK 2,579m (1,736). The organic sales decreased by 6 percent and acquired growth totalled 51 percent. Exchange rate changes had a positive impact of 4 percent on net sales in the quarter.

NET SALES 3 MONTHS

Net sales related to COVID-19 accounted for SEK 459m (620) and organic growth, excluding COVID-19 amounted to 5 percent. EBITA increased by 34 percent to SEK 435m (326) and EBITA-margin amounted to 16.9 percent (18.8). Exchange rate changes had a positive effect on EBITA, corresponding to SEK 12m.

COVID-19 RELATED SALES

Throughout the COVID-19 pandemic, AddLife has supplied large volumes of products to the healthcare sector for treatment of COVID-19. Sales since the first quarter of 2020 have varied based on the spread of infection and restrictions in our societies.

Net financial items amounted to SEK -49m (-4) and profit after financial items amounted to SEK 289m (287). The increased negative net financial items is due to interest costs related to the acquisitions and exchange rate fluctuations. Profit after tax

NET SALES PER MARKET 2022

Sales in the Nordic markets amounted to 36 percent of total net sales compared to 49 percent last year (full year 2021). The change in geographical markets is due to the acquisitions in Europe during 2021-2022.

The war in Ukraine has not had a significant economic impact on the financial reports, but it can not be ruled out that this will happen in the future. We follow market developments closely, where we notice rising inflation, higher raw material and shipping costs and greater uncertainty about interest rate developments.

Financial position and cash flow

At the end of the quarter, the equity ratio stood at 37 percent (40). Equity per share totalled SEK 37,35 (35,14) and the return on equity at the end of the quarter was 19 percent (22). Return on working capital, P/WC (EBITA in relation to working capital) amounted to 86 percent (95). The slight decrease is mainly due to a relatively higher working capital, due to acquisitions.

The Group's interest-bearing net debt at the end of the quarter totalled SEK 4,983m (3,870), including pension liabilities of SEK 81m (82) and leasing liabilities of SEK 372m (339). The net debt/equity ratio, calculated on the basis of net debt including provisions for pensions and leasing liability, totalled 1.0 compared to 0.9 at the beginning of the interim period. In connection with the accession of MBA Incorporado S.L, new loans of EUR 98.5m were taken out, whereof EUR 39.5m were used for debt settlement. The credit agreement runs for 12 months with an extension option of up to a further 24 months.

Cash and cash equivalents, consisting of cash and bank balances, together with approved but non-utilised credit facilities, totalled SEK 844m (674) on 31 March 2022.

Cash flow from operating activities reached SEK 332m (184) during the quarter. The change is mainly due to an improved result adjusted for depreciation and amortisation and reduced capital tied up in working capital compared with previous year. Acquisitions of companies amounted to SEK 501m (6). Investments in non-current assets during the quarter amounted to SEK 60m (24). The increase is attributable to investments in instruments for rental to customers. Disposals of non-current assets amounted to SEK 3m (1). Repurchase of treasury shares amounted to SEK 49m (0). Exercised, issued and repurchased call options amounted to SEK 0m (5).

Acquisitions

Acquisitions completed from the 2021 financial year are distributed among the Group's business areas as follows:

		Net Sales,	Number of	Business
Acquisitions	Time	SEKm*	employees*	area
AddVision, Germany	April, 2021	700	190	Medtech
Healthcare 21 Group, Ireland	April, 2021	1,700	450	Medtech
Bio-Connect Group, Netherlands	September, 2021	140	31	Labtech
Fischer Medical ApS, Denmark	November, 2021	60	12	Medtech
Camanio AB, Sweden	December, 2021	13	18	Medtech
MBA Incorporado S.L, Spain	January, 2022	670	285	Medtech
Business from Telia Health Monitoring, Sweden	March, 2022	4	8	Medtech
		3,287	994

Acquisitions after the end of the interim period	Time	Net Sales, SEKm*	Number of employees*	Business area
O'Flynn Medical Ltd, Ireland	April, 2022	64	36	Medtech
BioCat GmbH, Germany	April, 2022	90	20	Labtech
		154	56

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

Two acquisitions were completed during the quarter:

On December 20, 2021, an agreement was signed to acquire the operations from Telia Health Monitoring to the Medtech business area. Telia Health Monitoring develop and provides a digital platform solution that enables self-monitoring by patients with chronic diseases. Access took place on March 1, 2022 and the business, with sales of SEK 4m, and its 8 employees, have been integrated into Camanio.

On December 22, 2021, an agreement was signed to acquire all the shares in MBA Incorporade S.L, a leading Spanish orthopaedic and trauma surgery business. MBA is acquired from Atlanta Private Equity, which owns approximately 75 percent, and a number of minority shareholders, which own 25 percent. The final purchase price amounts to a total of EUR 59 million after debt settlement and is financed through extended credit facilities. MBA will operate as a separate subgroup and will be part of the Medtech business area. The acquisition was completed and the shares accessed on January 20, 2022. MBA has annual net sales of approximately SEK 670m and 285 employees.

The effect of the acquisitions completed during the quarter on the AddLife Group's net sales was SEK 195m, on EBITA SEK 39m, on operating profit SEK 29m and on profit after tax for the interim period SEK 20m.

According to the preliminary acquisition analyses, the assets and liabilities included in the acquisitions carried out during the financial year 2022 were as follows:

Fair value	Total
Intangible non-current assets	450
Other non-current assets	418
Inventories	261
Other current assets	397
Deferred tax liability/tax asset	-101
Other liabilities	-1,053
Acquired net assets	372
Goodwill	275
Consideration¹	647
Less: cash and cash equivalents in acquired businesses	-175
Contingent consideration not yet paid	–
Effect on the Group's cash and cash equivalents	472

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 4m and are recognised as selling expenses. Revaluation of liabilities for contingent consideration added costs of SEK 4m during the quarter, which is recognised as other operating costs. An additional contingent consideration of SEK 31m has been paid during the quarter regarding the acquisition of Euroclone and Ropox during year 2020.

Employees

At the end of the quarter, the number of employees was 2,119, compared to 1,802 at the beginning of the financial year. During the quarter, the completed acquisitions have led to an increase of 293 employees. The average number of employees for the last 12-month period was 1,772 (1,548).

Labtech

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

	3 months ending			12 months ending
MSEK	31 Mar 22	31 Mar 21 change		31 Mar 22	31 Dec 21
Net sales	1,280	1,225	4%	4,428	4,373
EBITA	296	276	7%	997	977
EBITA-margin, %	23.2%	22.6%		22.5%	22.3%

Labtech's net sales increased by 4 percent in the first quarter to SEK 1,280m (1,225), where of organic sales, excluding COVID-19 related sales, amounted to 8 percent and acquired growth was 4 percent. Exchange rate changes had positive impact of 3 percent on net sales. Net sales related to COVID-19 decreased by 15 percent and accounted for SEK 459m (540). EBITA increased by 7 percent to SEK 296m (276), corresponding to an EBITA-margin of 23.2 percent (22.6).

NET SALES 3 MONTHS

NET SALES PER MARKET 2022

Denmark (15%) Italy (14%) Germany (14%) Norway (13%) Sweden (11%) Finland (9%) Austria (3%) Netherlands (2%) Poland (2%) Czech Republic (2%) Rest of Europe (13%) Rest of the world (2%)

Sales on the Nordic markets amounted to 48 percent of net sales in the first quarter 2022, compared to 58 percent last year (full year 2021). The change is due to the acquisitions made in Europe during the past year.

The Labtech business has had a strong start to the new year. The Omicron variant initially led to increased testing, but as expected, sales of COVID-19 products generally decreased compared with the corresponding quarter last year. However, sales of non-COVID products increased. In diagnostics, we have solid growth in areas such as blood gas analysis, pathology and microbiology with increased sample volumes on existing instruments. COVID-19 testing is now limited to patients requiring hospital care and hospital staff, as well as private customers, including off-shore and airports. Future COVID-19 test sales in our diagnostics companies are entirely dependent on how the pandemic evolves, new mutations and different testing requirements in society.

In most countries, lifted restrictions have brought back opportunities for customer visits to demonstrate and discuss new products and solutions. This quarter, the number of procurements of more routine products has picked up again.

Our research companies had good sales growth at the end of the quarter as research laboratories reopened. Sales of non-COVID-related products are increasing most, but several companies continue to sell products for COVID-19, including mutation sequencing and wastewater testing. Demand is generally increasing for laboratory reagents used for gene sequencing, cell therapy and cancer immunology, as well as for certain instruments. The sales trend for our own advanced instruments was also robust, especially in Europe and China.

NET SALES (SEKM)

EBITA (SEKM)

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
MSEK	31 Mar 22	31 Mar 21 change		31 Mar 22	31 Dec 21
Net sales	1,301	512	154%	4,414	3,625
EBITA	144	50	190%	404	310
EBITA-margin, %	11.1%	9.7%		9.2%	8.6%

For the quarter, Medtech's net sales increased by 154 percent to SEK 1,301m (512), of which organic growth, excluding COVID-19 related sales, amounted to 1 percent and acquired growth was 166 percent. Exchange rate fluctuations had a positive impact of 3 percent on net sales. Net sales related to COVID-19 accounted for SEK 0m (80). EBITA increased by 190 percent to SEK 144m (50) and EBITA margin amounted to 11.1 percent (9.7).

NET SALES 3 MONTHS

NET SALES PER MARKET 2022

Sales in the Nordic markets amounted to 25 percent of net sales in the first quarter 2022, compared to 32 percent last year (full year 2021). The shift from mainly the Nordic countries to an increasing share of sales in Europe is due to the major acquisitions made in the business area during 2021- 2022.

The strong sales and EBITA growth in the Medtech business area is driven by the acquisitions made over the past year. All acquisitions have performed well and in line with our expectations. The business situation for our largest acquisitions from 2021, Healthcare 21 and AddVision, has been relatively unchanged compared with last year because of continued reduced levels of elective surgery. AddVision also started up operations in Sweden through its own company in the quarter.

The market situation has been highly volatile during the quarter, entirely due to the evolution of the pandemic. High infection rates among health workers have led to fewer surgical procedures as queues for surgery continue to grow. Overall, the number of planned procedures in the quarter has been at a lower level than before the pandemic, but with a clear increase in the month of March. Several initiatives are underway in all countries from both political and private sources to increase healthcare capacity and reduce healthcare debt.

In the new procurements from the Nordic countries, the trend is clear that the focus on sustainability is growing. In Norway, for example, the new "Åpenhetsloven" (Transparency Act) has led to an increased focus on ethical business and traceability of materials in procurement.

For home care companies, the market situation was also volatile, but as case rates slowed towards the end of the quarter, society finally reopened for customer visits and product trials. We continue to see strong market demand for both our digital solutions and other assistive technology. In the quarter, the newly acquired Camanio both integrated the operations of Telia Health Monitoring and installed an interesting digital pilot project in a Swedish municipality.

NET SALES (SEKM)

EBITA (SEKM)

Net sales by business area

	2022				2021
Quarterly data, SEKm	Q1	Q4	Q3	Q2	Q1
Labtech	1,280	1,089	890	1,169	1,225
Medtech	1,301	1,043	962	1,108	512
Group items	-2	-1	-2	-1	-1
AddLife Group	2,579	2,131	1,850	2,276	1,736

EBITA by business area

	2022				2021
Quarterly data, SEKm	Q1	Q4	Q3	Q2	Q1
Labtech	296	227	194	280	276
Medtech	144	108	95	57	50
Parent Company and Group items	-5	-6	-3	-5	0
EBITA	435	329	286	332	326
Depreciation intangible assets	-97	-84	-79	-79	-35
Operating profit	338	245	207	253	291
Finance income and expenses	-49	-22	-27	-16	-4
Profit after financial items	289	223	180	237	287

Net sales by business area

	3 months ending			12 months ending
SEKm	31 Mar 22	%	31 Mar 21	31 Mar 22	31 Dec 21
Labtech	1,280	4	1,225	4,428	4,373
Medtech	1,301 154		512	4,414	3,625
Group items	-2		-1	-6	-5
AddLife Group	2,579	49	1,736	8,836	7,993

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

	3 months ending						12 months ending
SEKm	31 Mar 22	%	31 Mar 21	%	31 Mar 22	%	31 Dec 21	%
Labtech	296	23.2	276	22.6	997	22.5	977	22.3
Medtech	144	11.1	50	9.7	404	9.2	310	8.6
Parent Company and Group items	-5		0		-19		-14
EBITA		435 16.9		326 18.8	1,382 15.7		1,273 15.9
Depreciation intangible assets	-97		-35		-339		-277
Operating profit		338 13.1		291 16.8	1,043 11.8			996 12.5
Finance income and expenses	-49		-4		-114		-69
Profit after financial items	289		287		929		927

Net sales by revenue type

	3 months ending			12 months ending
SEKm	31 Mar 22	31 Mar 21	31 Mar 22	31 Dec 21
Products
Labtech	1,045	1,006	3,557	3,518
Medtech	1,085	473	3,660	3,048
Group items	-2	-1	-6	-5
The Group	2,128	1,478	7,211	6,561
Instruments
Labtech	156	172	657	673
Medtech	113	38	421	346
The Group	269	210	1,078	1,019
Service
Labtech	79	47	214	182
Medtech	103	1	333	231
The Group	182	48	547	413
Total	2,579	1,736	8,836	7,993

Income statement	3 months ending		12 months ending
SEKm	31 Mar 22	31 Mar 21	31 Mar 22	31 Dec 21
Net sales	2,579	1,736	8,836	7,993
Cost of sales	-1,578	-1,113	-5,601	-5,136
Gross profit	1,001	623	3,235	2,857
Selling expenses	-512	-263	-1,735	-1,486
Administrative expenses	-132	-69	-451	-388
Research and Development	-17	-8	-43	-34
Other operating income and expenses	-2	8	37	47
Operating profit	338	291	1,043	996
Financial income and expenses	-49	-4	-114	-69
Profit after financial items	289	287	929	927
Tax	-64	-61	-209	-206
Profit for the period	225	226	720	721
Attributable to:
Equity holders of the Parent Company	225	226	718	719
Non-controlling interests	0	0	2	2
Earnings per share (EPS) before dilution, SEK	1.85	2.01	5.91	6.03
Earnings per share (EPS) after dilution, SEK	1.84	2.00	5.88	6.01
Average number of shares after repurchases '000s	121,803	112,490	121,714	119,418
Number of shares at end of the period, '000	121,703	112,491	121,703	121,953
EBITA	435	326	1,382	1,273
Depreciations included in operating expenses
- property, plant and equipment	-74	-38	-237	-201
- intangible non-current assets from acquisitions	-89	-30	-309	-250
- other intangible non-current assets	-8	-5	-30	-27

Consolidated income statement, condensed

Statement of comprehensive income

		3 months ending	12 months ending
SEKm	31 Mar 22	31 Mar 21	31 Mar 22	31 Dec 21
Profit for the period	225	226	720	721
Components that may be reclassified to profit for the period
Foreign currency translation differences for the period	84	51	105	72
Components that can not be reclassified to profit for the period
Revaluations of defined benefit pension plans	–	–	0	0
Tax attributable to items not to be reversed in profit	–	–	0	0
or loss
Other comprehensive income	84	51	105	72
Total comprehensive income	309	277	825	793
Attributable to:
Equity holders of the Parent Company	309	276	823	790
Non-controlling interests	0	1	2	3

Consolidated balance sheet, condensed

SEKm	31 Mar 22	31 Dec 21	31 Mar 21
Goodwill	4,852	4,528	1,113
Other intangible non-current assets	3,062	2,663	895
Property, plant and equipment	843	627	424
Financial non-current assets	148	27	23
Total non-current assets	8,905	7,845	2,455
Inventories	1,487	1,189	707
Current receivables	1,505	1,217	982
Cash and cash equivalents	475	345	364
Total current assets	3,467	2,751	2,053
Total assets	12,372	10,596	4,508
Total equity	4,551	4,291	2,162
Interest-bearing provisions	207	114	112
Non-interest-bearing provisions	487	489	154
Non-current interest-bearing liabilities	810	788	224
Non-current non-interest-bearing liabilities	10	2	1
Total non-current liabilities	1,514	1,393	491
Non-interest-bearing provisions	12	10	10
Current interest-bearing liabilities	4,441	3,314	576
Current non-interest-bearing liabilities	1,854	1,588	1,269
Total current liabilities	6,307	4,912	1,855
Total equity and liabilities	12,372	10,596	4,508

	1 Jan 22 – 31 Mar 22			1 Jan 21 – 31 Dec 21
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	4,285	6	4,291	1,882	8	1,890
Non-cash issue	–	–	–	1,524	–	1,524
Exercised and issued call options	–	–	–	-9	–	-9
Repurchase of treasury shares	-49	–	-49	–	–	–
Disposal of treasury shares	–	–	–	281	–	281
Dividend	–	–	–	-183	-5	-188
Total comprehensive income	309	0	309	790	3	793
Amount at the end of the period	4,545	6	4,551	4,285	6	4,291

Statement of change in Group equity

Cash flow statement, condensed

Cash flow statement, condensed	3 months ending			12 months ending
SEKm	31 Mar 22	31 Mar 21	31 Mar 22	31 Dec 21
Profit after financial items	289	287	929	927
Adjustment for items not included in cash flow	215	103	561	449
Income tax paid	-71	-36	-287	-252
Changes in working capital	-101	-170	-45	-114
Cash flow from operating activities	332	184	1,158	1,010
Net investments in non-current assets	-57	-24	-167	-134
Acquisitions and disposals	-501	-6	-3,338	-2,843
Cash flow from investing activities	-558	-30	-3,505	-2,977
Dividend paid to shareholders	–	–	-183	-183
Exercised and issued call options	–	-5	-4	-9
Repurchase of treasury shares	-49	–	-49	–
Borrowings	982	13	3,618	2,649
Repayments on loans	-562	-8	-814	-260
Other financing activities	-37	-24	-140	-127
Cash flow from financing activities	334	-24	2,428	2,070
Cash flow for the period	108	130	81	103
Cash and cash equivalents at beginning of period	345	216	364	216
Exchange differences on cash and cash equivalents	22	18	30	26
Cash and cash equivalents at end of the period	475	364	475	345

Key financial indicators

	12 months up until
	31 Mar 22	31 Dec 21	31 Mar 21	31 Dec 20	31 Dec 19
Net sales, SEKm	8,836	7,993	5,956	5,273	3,479
EBITA, SEKm	1,382	1,273	1,022	802	305
EBITA margin, %	15.7%	15.9%	17.2%	15.2%	8.8%
Profit growth, EBITA, %	35%	59%	200%	163%	25%
Return on working capital (P/WC), %	86%	95%	122%	103%	51%
Profit for the period, SEKm	720	721	692	520	142
Return on equity, %	19%	22%	39%	31%	10%
Financial net liabilities, SEKm	4,983	3,870	548	700	902
Financial net liabilities/EBITDA, multiple	3.2	2.6	0.5	0.7	2.1
Net debt/equity ratio, multiple	1.0	0.9	0.2	0.4	0.6
Equity ratio, %	37%	40%	48%	46%	45%
Average number of employees	1,772	1,548	1,045	1,004	903
Number of employees at end of the period	2,119	1,802	1,128	1,112	932

Key ratio definitions can be found here.

Key financial indicators per share

	12 months up until
	31 Mar 22	31 Dec 21	31 Mar 21	31 Dec 20	31 Dec 19
Earnings per share (EPS), SEK	5.91	6.03	6.16	4.63	1.28
Diluted EPS, SEK	5.88	6.01	6.14	4.61	1.28
Cash flow per share from operating activities, SEK	9.51	8.46	9.40	8.47	3.61
Shareholders' equity per share, SEK	37.35	35.14	19.14	16.73	13.07
Average number of shares after repurchases, '000s	121,714	119,418	112,207	112,127	111,083
Average number of shares adjusted for repurchases and dilution, '000s	122,282	119,966	112,670	112,652	111,297
Number of shares outstanding at end of the period, '000s	121,703	121,953	112,491	112,487	112,237
Number of shares outstanding at end of the period after dilution, '000s	122,270	122,501	112,954	113,012	112,451

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.

Parent company

The Parent Company's net sales for the interim period amounted to SEK 16m (14) and profit after financial items amounted to SEK -37m (1). At the end of the interim period, the Parent Company's net financial debt amounted to SEK 4,085m (3,122). The share capital at the end of the interim period was SEK 62m (62).

Income statement

	3 months ending			12 months ending
SEKm	31 Mar 22	31 Mar 21	31 Mar 22	31 Dec 21
Net sales	16	14	53	51
Administrative expenses	-21	-15	-74	-68
Operating profit/loss	-5	-1	-21	-17
Interest income/expenses and similar items	-32	2	-35	-1
Profit/loss after financial items	-37	1	-56	-18
Appropriations	–	–	99	99
Profit/loss before taxes	-37	1	43	81
Income tax expense	7	0	-8	-15
Profit/loss for the period	-30	1	35	66

Balance sheet

Balance sheet, SEKm	31 Mar 22	31 Dec 21	31 Mar 21
Intangible non-current assets	0	0	0
Tangible non-current assets	0	0	0
Non-current financial assets	7,813	6,978	2,017
Total non-current assets	7,813	6,978	2,017
Current receivables	245	407	359
Total current assets	245	407	359
Total assets	8,058	7,385	2,376
Restricted equity	62	62	58
Unrestricted equity	2,771	2,850	1,172
Total equity	2,833	2,912	1,230
Untaxed reserves	120	120	96
Interest-bearing long-term liabilities	86	235	55
Non-interest-bearing long-term liabilities	1	1	1
Total long-term liabilities	87	236	56
Interest-bearing short-term liabilities	4,983	3,946	946
Non-interest-bearing short-term liabilities	35	171	48
Total short-term liabilities	5,018	4,117	994
Total equity and liabilities	8,058	7,385	2,376

	31 Mar 22			31 Dec 21
	Carrying			Carrying
SEKm	amount	Level 2	Level 3	amount	Level 2	Level 3
Derivatives measured at fair value through profit or loss	0	0	–	0	0	–
Total financial assets at fair value per level	0	0	–	0	0	–
Derivatives measured at fair value through profit or loss	0	0	–	0	0	–
Contingent considerations	328	–	328	349	–	349
Total financial liabilities at fair value per level	328	0	328	349	0	349

Fair values on financial instruments

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 essentially correspond to the carrying amount.

Contingent considerations

	3 months ending		12 months ending
SEKm	31 Mar 22	31 Mar 21	31 Mar 22	31 dec 21
Carrying amount, opening balance	349	86	83	86
Acquisitions during the period	-	–	251	251
Consideration paid	-31	-6	-31	-6
Revaluation through profit or loss	4	–	10	6
Reversed through profit or loss	–	–	–	–
Interest expenses	2	1	10	9
Exchange differences	4	2	5	3
Carrying amount, closing balance	328	83	328	349

Pledged assets and contingent liabilities in the Group

SEKm	31 Mar 22	31 Dec 21	31 Mar 21
Contingent liabilities	47	41	41

Reconciliation key ratios

	Profit/loss after tax attributable to shareholders, as a percentage of
Return on equity	shareholders' proportion of average equity.
	31 Mar 22	31 Dec 21	31 Mar 21
Profit/loss for the period (roll 12 months)	720	721	692
Average equity	3,795	3,263	1,779
Return on equity	720/3,795=19%	721/3,263=22%	692/1,779=39%
Return on working capital (P/WC)	EBITA in relation to average working capital.
	31 Mar 22	31 Dec 21	31 Mar 21
EBITA	1,382	1,273	1,022
Average working capital (WC)	1,606	1,347	836
P/WC	1,382/1,606=86%	1,273/1,347=95%	1,022/836=122%
EBITA		Operating profit before amortization of intangible assets.
	31 Mar 22	31 Dec 21	31 Mar 21
Operating profit (12 months rolling)	1,043	996	889
Amortization of intangible assets	339	277	133
EBITA	1,382	1,273	1,022
EBITA margin	EBITA in relation to net sales
	31 Mar 22	31 Dec 21	31 Mar 21
EBITA	1,382	1,273	1,022
Net sales (12 months rolling)	8,836	7,993	5,956
EBITA margin	1,382/8,836=15,7%	1,273/7,993=15.9%	1,022/5,956=17.2%
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	EBITA.	This year's EBITA decreased by last year's EBITA divided by last year's
Financial net liabilities	and cash equivalents.	Interest-bearing liabilities and interest-bearing provisions, less cash
Equity ratio	Equity as a percentage of total assets.
COVID-19 related sales	Big orders of PPE and COVID-19 tests

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 in other parts of interim report. For additional information regarding choosen key ratios, please refer to AddLife's annual report 2021. The comparison figures for income and expense items relate to values for the period January–March 2021 and for balance sheet items as at 31 December 2021 if nothing else is stated.

The share

The share capital at the end of the quarter amounted to SEK 62 million (62).

The number of repurchased own shares amounts to 747,489 Class B, corresponding to 0.6 percent of the total number of shares and 0.5 percent of the votes. The average purchase price for shares held in treasury amounts to SEK 99.87 per share. The average number of treasury shares held during the quarter was 647,011 (2,007,970). The share price at 31 March 2022 was SEK 263.20 and the most recent price paid for the AddLife share on 27 April 2022 was SEK 232.00.

SHARE DEVELOPMENT IN ADDLIFE

	Jan-Mar
Turnover and trading	2022
Lowest price, SEK	192.00
Highest price, SEK	371.00
Average daily turnover, SEK	84,914,880
Number of traded shares, no	22,479,885
Number of transactions, no	164,626

AddLife has three outstanding call option programmes totalling 2,110,000 Class B shares. Issued call options on repurchased shares have resulted in a calculated dilution effect based on average share price for the quarter of approximately 0.5 percent (0.5).

Outstanding	Number of	Corresponding number of	Percentage of total number of	Exercise
programmes	warrants	shares	shares	price	Exercise period
2021/2025	250,000	250,000	0.2%	259.00	10 Jun 2024 - 28 Feb 2025
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
Total	715,000	2,110,000

On 31 March 2022, the number of shareholders amounted to 14,780, where of 65 percent are Swedish owners with respect to capital share. The 10 biggest shareholders controlled 56 percent of number of capital and 65 percent of votes.

			Share in %
Shareholders 2022-03-31	Class A-shares	Class B-shares	of capital	of votes
Roosgruppen AB	2,165,644	2,824,727	4.08	14.93
Tom Hedelius	2,066,572	23,140	1.71	12.62
SEB Fonder	0	11,537,537	9.43	7.04
State Street Bank & Trust Company	0	10,425,095	8.52	6.35
AMF - Försäkring och Fonder	0	9,174,976	7.49	5.59
Swedbank Fonder	0	8,418,769	6.88	5.13
Verdipapirfond Odin	0	6,829,206	5.58	4.16
Handelsbanken fonder	0	5,333,836	4.36	3.25
BNY Mellon NA (Former Mellon)	0	5,243,471	4.28	3.20
AP-fonden	0	5,068,296	4.14	3.09
Total the 10 biggest shareholders	4,232,216	64,879,053	56.47	65.36
Other shareholders	382,920	52,208,572	42.93	34.14
Total outstanding shares	4,615,136	117,087,625	99.40	99.50
Repurchased own shares Class B	-	747,489	0.60	0.50
Total registered shares	4,615,136	117,835,114	100.00	100.00

Source: Euroclear

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 2021 annual report for AddLife AB were also used in the interim report. The amendments to IFRSs applicable from 1 January, 2022 have no effects to AddLife's financial reports for the interim period ended 31 March, 2022.

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. For additional information regarding choosen key ratios, please refer to AddLife's annual report 2021. 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

On 1 April 2022, AddLife acquired all shares in the Irish company O'Flynn Medical Ltd. O'Flynn Medical is an independent distributor offering product sales, rental and technical services to the hospital sector, private customers and nursing homes in Ireland. The company will become part of the Healthcare 21 Group, which AddLife acquired to the business area Medtech in 2021. O'Flynn has sales of approximately EUR 6.4 million and 36 employees.

On 1 April 2022, AddLife acquired all shares in the German company BioCat GmbH in the Labtech business area. BioCat is a specialized distributor of products and services to the life science research market with annual revenues of EUR 9 million and has 20 employees. The company is located in Germany but also has sales in Austria and Switzerland.

The Board of Directors of AddLife AB (publ) has on 21 April 2022 appointed Fredrik Dalborg as the new President and CEO of AddLife. Fredrik Dalborg succeeds Kristina Willgård, who previously announced her decision to resign no later than during the fourth quarter of 2022, when Fredrik Dalborg is expected to take over.

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, in AddLife's annual report 2021. The Parent Company is indirectly affected by the above risks and uncertainties through its function in the Group.

Conference call

Investors, analysts and the media are invited to a conference call where CEO Kristina Willgård 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. It will be recorded and made available online. If this is your first time using Teams, you will be asked to download an app.

The teleconference will be at 10:00 a.m. on April 28th 2022

If you wish to participate via teleconference, please follow this link>> Or call in (only sound) +46 8 505 376 58 Conferens-ID: 862 373 160#

The presentation is also available on AddLife YouTube >>

Financial calendar

• The annual general meeting (AGM) of AddLife AB (publ) will be held on 5 May 2022, 4 PM, World Trade Center, Stockholm
• The interim report for 1 January 30 June 2022 will be published on 15 July 2022
• The interim report for 1 January 30 September 2022 will be published on 27 October 2022
• The Year-end report for 1 January 31 December 2022 will be published on 2 February 2023

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

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 7:45 a.m. CET on April 28th, 2022.

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