AddLife — Interim / Quarterly Report 2024

Apr 24, 2024

Interim report 1 January – 31 March 2024

Positive profitability trend driven by Medtech

During the quarter, profitability strengthened in line with our priorities and organic sales increased by 4%. Labtech's sales performance was temporarily weaker, but the companies were largely able to defend their margins. Medtech delivered strong growth and it is gratifying to see a gradual improvement in profitability, driven in part by implemented improvement actions.

Fredrik Dalborg, President and CEO

1 JANUARY – 31 MARCH 2024 (3 MONTHS)

• Net sales increased by 5% to SEK 2,570 m (2,457). The organic growth, excluding exchange rate changes, was 4%.
• EBITA decreased by 20% to SEK 291 m (366), corresponding to an EBITAmargin of 11.3% (14.9). EBITA previous year included reversed contingent considerations of SEK 83 m. Adjusted for this EBITA increased by 3% and the EBITA margin previous year amounted to 11.5%.
• Profitfor the period amounted to SEK 63 m (174).
• Earnings per share amounted to SEK 0.52 (1.43). Earnings per share for the last 12 months amounted to SEK 0.65 (3.54)
• Cash flow from operating activities amounted to SEK 97 m (105).
• The equity ratio was 39% (39).
• Return on working capital (P/WC) amounted to 46% (50).

	3 months ending			12 months ending
SEKm	31 Mar 24	31 Mar 23 change		31 Mar 24	31 Dec 23
Net sales	2,570	2,457	5%	9,798	9,685
EBITA	291	366	-20%	1,060	1,135
EBITA-margin	11.3%	14.9%		10.8%	11.7%
Profit before tax	100	206	-51%	233	339
Profit for the period	63	174	-64%	81	192
Earnings per share before dilution, SEK	0.52	1.43	-64%	0.65	1.56
Earnings per share after dilution, SEK	0.52	1.42	-63%	0.65	1.56

NET SALES (SEKM)

EBITA (SEKM)

	3 months ending
One-off costs, SEKm	31 Mar 24	31 Mar 23
Restructuring reserve Camanio Health	-6	–
Reversed contingent consideration	–	83
Total one-off costs	-6	83

	3 months ending
Classification in income statement, SEKm	31 Mar 24	31 Mar 23
Cost of sales	–	–
Selling expenses	-1	–
Administrative expenses	-2	–
Research and Development	-3	–
Other operating income and expenses	–	83
Total one-off costs in the income statement	-6	83

COMMENTS BY THE CEO

Healthcare activity in Europe remains high

Activity remains high in the markets where AddLife's companies operate. Healthcare waiting times remain significant and the number of elective surgery procedures is increasing in most countries, a trend that is expected to continue.

Several major product companies continue to modify their commercial strategies. This creates opportunities for AddLife's companies to broaden their offerings, take on new product portfolios and grow their market shares.

Long-term positive trends in the market, such as efforts to reduce waiting lists in healthcare, investments in research, and the necessity for effective management of growing healthcare needs, persist.

In the quarter, the combination of a solid sales

performance and relentless efficiency improvement efforts led to positive margin development. Margin improvements in AddVision have materialized faster than expected. Continued improvements in profitability remain the top priority.

Somewhat weaker demand in Labtech

Demand in Labtech was stable at the beginning of the quarter. Following a temporary decline in March, demand began to rise again at the start of April. Customers in diagnostics and academic research displayed somewhat cautious behaviour during the quarter. Uncertainty regarding publicly funded budgets was the key reason for this behaviour. This trend primarily affects larger investment projects, but has also delayed some of the instrument sales by AddLife companies. These deferred instrument sales are expected to be completed later in the year. In pharmaceutical research, a key customer segment, demand remains strong. The AddLife companies constantly focus on defending and improving profitability, and therefor the weaker sales did not have a significant impact on EBITA margin.

Growth and improved margins in Medtech

The number of surgical procedures performed continued to rise over the quarter, leading to strong growth in Medtech. This was the case even though many clinics were closed during Easter, which occurred in March this year. Most of the Medtech companies saw their margins improve during the quarter. Sales of both instruments and disposable products were particularly robust in the UK and Ireland.

In eye surgery, the combination of stable sales and reduced costs resulted in a clear and fast improvement in profitability. The organisation has stabilised and the product portfolio has been updated and is now competitive. The companies in Poland and Switzerland are experiencing strong profitability. The dedicated efforts to improve profitability continue, while the companies remain fully focused on implementing their commercial plans.

Cost efficiency efforts are also underway in Homecare. The closure of Camanio is progressing according to plan and the Camanio team is actively working to help existing customers migrate to alternative solutions. A restructuring cost of SEK 6 million was recognised in the quarter. The cost savings will be realised in the coming quarters and the decommissioning is expected to be completed by the end of the third quarter of 2024.

Summary

Long-term market trends support demand in AddLife's companies. In the quarter, the combination of a solid sales performance and relentless efficiency improvement efforts led to positive margin development. Continued improvements in profitability remain the top priority. Profitability in Labtech was steady, even with a slowdown in sales, while profitability trended positively in Medtech. The improvement in Medtech was fuelled by robust sales and margin growth for most of the companies, coupled with a clear improvement in eye surgery.

Efforts to improve cash flow efficiency remain a top priority. Cash flow from operating activities totalled SEK 97 million in the quarter. The long-term efforts to improve working capital efficiency, streamline inventory management and renegotiate supplier agreements continue to produce results by reducing inventory levels. Our ambition is to reduce net debt through internally generated cash flow and gradually resume an increased pace of acquisitions.

Our companies maintain strong customer relationships and do an outstanding job of handling both challenges and opportunities. AddLife is off to a good start in 2024.

Fredrik Dalborg President and CEO

Group Performance in the quarter

Net sales in the quarter increased by 5 percent to SEK 2,570 m (2,457). Organic growth, excluding exchange rate changes, amounted to 4 percent. Exchange rate changes had a positive impact of 1 percent on net sales in the quarter, corresponding to SEK 24 m.

NET SALES 3 MONTHS

The quarterly result has been charged with restructuring costs of SEK 6 m related to winding down of Homecare's digital development project and thus closure of the subsidiary Camanio.

EBITA decreased by 20 percent to SEK 291 m (366) and the EBITA margin amounted to 11.3 percent (14.9). EBITA previous year included reversal of contingent consideration of SEK 83 m. Adjusted for this EBITA increased by 3 percent and the EBITA margin in the previous year amounted to 11.5%. Exchange rate changes had a positive impact on EBITA, corresponding to SEK 3 m.

EBITA 3 MONTHS

Net financial items amounted to SEK -86 m (-52) and profit after financial items amounted to SEK 100 m (206). Net financial items mainly include interest costs related to financing of previous acquisitions and exchange rate fluctuations. Net interest amounted to SEK -74 m (-54) and exchange rate losses to SEK -9 m (6). Exchange rate changes are linked to recalculation of loans and contingent considerations in foreign currency. The profit after tax for the quarter amounted to SEK 63 m (174) and the effective tax rate was 37 percent (16). The higher effective tax rate is attributable to the effect of non-deductible interest costs.

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 costs, component costs, shipping costs, energy costs and greater uncertainty about interest rate developments. We follow the development in the Middle East but, at this point in time, our assessment is that this does not have a significant impact on the group.

Financial position and cash flow

At the end of the period, the equity ratio stood at 39 percent (39). Equity per share totalled SEK 42.38 (40.69) and the return on equity at the end of the quarter was 2 percent (4). Return on working capital, P/WC (EBITA in relation to working capital) amounted to 46 percent (50).

The group's interest-bearing net debt at the end of the period amounted to SEK 5,437 m (5,192), including pension liabilities of SEK 64 m (64), leasing liabilities of SEK 583 m (498) and contingent considerations corresponding to SEK 82 m (87). Outstanding bank loans at the end of the quarter amounted to SEK 4,872 m (4,698), whereof short-term bank loans amounted to SEK 2,299 m (2,212).

The group has a good margin in the covenants applicable under the banking agreements, which stipulate an interest coverage ratio of at least 4.0 times and an equity ratio exceeding 25 percent. As of the end of the period, the interest coverage ratio amounted to 5.3 times, as defined in the bank agreements.

The net debt/equity ratio totalled 1.1 compared to 1.0 at the beginning of the interim period. The intention is to reduce debt through self-generated cash flow.

Cash and cash equivalents, consisting of cash and bank balances, together with approved but non-utilised credit facilities, totalled SEK 992 m (1,013) on March 31, 2024.

The cash flow from current operations during the quarter amounted to SEK 97 m (105), mainly attributable to a lower result after financial items. Paid out contingent consideration related to acquisitions of companies in previous years amounted to SEK 7 m (16). Net investments in non-current assets during the quarter amounted to SEK 61 m (65) and are mainly attributable to investments in instruments for rental to customers. Exercised, issued and repurchased call options amounted to SEK -12 m (-17).

6

Acquisitions

Acquisitions completed from the 2023 financial year are distributed among the group's business areas as follows:

Acquisitions	Time	Net Sales, SEKm*	Number of employees*	Business area
Emmat Medical Ltd, Great Britain	September, 2023	28	4	Medtech
		28	4

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

Contingent consideration amounting to SEK 7 m has been paid during the quarter regarding BioConnect, which was acquired in 2021.

Employees

At the end of the quarter, the number of employees was 2,289, compared to 2,301 at the beginning of the financial year. The average number of employees for the last 12-month period was 2,297 (2,214).

BUSINESS AREA

Labtech

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

	3 months ending			12 months ending
SEKM	31 Mar 24	31 Mar 23 change		31 Mar 24	31 Dec 23
Net sales	863	905	-5%	3,612	3,654
Organic growth, %	-5%	10%			10%
EBITA	99	115	-14%	457	473
EBITA-margin	11.5%	12.7%		12.6%	12.9%

Labtech's net sales decreased by 5 percent in the first quarter to SEK 863 m (905). The organic sales growth amounted to -5 percent. Exchange rate changes had a marginally positive impact on net sales. EBITA decreased by 14 percent to SEK 99 m (115), corresponding to an EBITA-margin of 11.5 percent (12.7).

NET SALES 3 MONTHS

Sales growth in Labtech was weak in the quarter, especially in March. This weakening in demand deemed to be temporary. Some uncertainty about tax-financed budgets was noted in the Nordic countries and some instrument investments have been delayed. Following a robust finish to the previous year in the Eastern European markets, the first quarter of 2024 saw a slight downturn.

Several Labtech companies are also experiencing delayed deliveries from suppliers, which has affected sales in the quarter. The ongoing effort to update product portfolios and add and commercialise new advanced products continues.

The companies within Labtech have done a good job with the gross margin, maintained good cost control, and have been able to defend their margins despite the decrease in volume.

In Diagnostics, although some instrument sales projects have been postponed, none have been abandoned and they are projected to finish later in the year. Staff shortages in laboratories and in purchasing departments may contribute to delays in purchases, but could also boost interest in the automated solutions offered by AddLife's companies. Major competitors are downsizing their local staff in their country organizations, which may lead to new distribution agreements for AddLife's companies or weakened competition, creating opportunity to expand market share and opportunity to recruit key personnel.

In Biomedical & Research, demand was weak in March, especially for instruments, while sales of consumables performed well. Sales to industrial research customers remained strong, as did sales of proprietary products.

NET SALES PER MARKET 2024

EBITA (SEKM)

NET SALES (SEKM)

EBITA MARGIN (%)

Rolling 12 months, %

BUSINESS AREA

Medtech

Companies in the Medtech business area provide medical device products within the medtech market and assistive equipment within Homecare.

	3 months ending			12 months ending
MSEK	31 Mar 24	31 Mar 23 change		31 Mar 24	31 Dec 23
Net sales	1,708	1,554	10%	6,196	6,042
Organic growth, %	9%	13%			9%
EBITA	198	256	-23%	626	684
EBITA-margin	11.6%	16.5%		10.1%	11.3%

The companies within Medtech had a good first quarter and net sales increased by 10 percent to SEK 1,708 m (1,554), of which organic growth was 9 percent and exchange rate changes positively affected net sales by 1 percent. EBITA decreased by 23 percent to SEK 198 m (256), corresponding to an EBITA-margin of 11.6 percent (16.5). EBITA in the previous year was positively affected by the reversal of contingent considerations of SEK 83 million. Adjusted for this EBITA increased by 15 percent and the EBITA margin in the previous year amounted to 11.1%. Camanio has had a negative impact on the result with SEK 21 million, of which SEK 6 million refers to a restructuring reserve related to the successive closure of the company.

NET SALES 3 MONTHS

Sales growth in Hospital was strong, especially in the UK and Ireland. Efforts to sell proprietary products in several of AddLife's companies are progressing well. Most companies showed improved profitability.

In eye surgery, the cost-cutting measures are yielding quick and clear results. The companies in Poland and Switzerland achieved a good level of profitability during the quarter. The companies have competitive product portfolios that were updated during the first quarter and efforts to improve profitability are ongoing.

In Homecare, demand for renovation and new construction projects remains weak. Long-term underlying positive factors, such as an aging population and technological advances, remain unchanged. The closure of Camanio is progressing according to plan and customers are being supported as they transition to alternative suppliers. Restructuring costs of SEK 6 million were recognised during the quarter. The cost savings will be realised in the coming quarters and the decommissioning is expected to be completed by the end of the third quarter of 2024

NET SALES (SEKM)

NET SALES PER MARKET 2024

EBITA (SEKM)

EBITA MARGIN (%)

Net sales by business area

	2024				2023
Quarterly data, SEKm	Q1	Q4	Q3	Q2	Q1
Labtech	863	1,050	827	872	905
Medtech	1,708	1,498	1,494	1,496	1,554
Group items	-1	-4	-2	-3	-2
AddLife Group	2,570	2,544	2,319	2,365	2,457

EBITA by business area

	2024				2023
Quarterly data, SEKm	Q1	Q4	Q3	Q2	Q1
Labtech	99	152	99	107	115
Medtech	198	133	150	145	256
Parent Company and Group items	-6	-7	-5	-5	-5
EBITA	291	278	244	247	366
Depreciation and write-down intangible assets	-105	-219	-112	-111	-108
Operating profit	186	59	132	136	258
Finance income and expenses	-86	-57	-71	-66	-52
Profit after financial items	100	2	61	70	206

EBITA by business area excluding items affecting comparability

	2024				2023
Quarterly data, SEKm	Q1	Q4	Q3	Q2	Q1
Labtech	99	152	84	107	115
Medtech	204	114	148	145	173
Parent Company and Group items	-6	-7	-5	-5	-5
EBITA	297	259	227	247	283
Depreciation and write-down intangible assets	-105	-113	-112	-111	-108
Operating profit	192	146	115	136	175
Finance income and expenses	-86	-57	-71	-66	-52
Profit after financial items	106	89	44	70	123

Net sales by business area

			3 months ending	12 months ending
SEKm	31 Mar 24	%	31 Mar 23	31 Mar 24	31 Dec 23
Labtech	863	-5	905	3,612	3,654
Medtech	1,708 10		1,554	6,196	6,042
Group items	-1		-2	-10	-11
AddLife Group	2,570	5	2,457	9,798	9,685

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

			3 months ending 12 months ending
SEKm	31 Mar 24	%	31 Mar 23	%	31 Mar 24	%	31 Dec 23	%
Labtech	99	11.5	115	12.7	457	12.6	473	12.9
Medtech	198	11.6	256	16.5	626	10.1	684	11.3
Parent Company and Group items	-6		-5		-23		-22
EBITA		291 11.3		366 14.9	1,060 10.8		1,135 11.7
Depreciation and write down intangible assets	-105		-108		-547		-550
Operating profit	186	7.3		258 10.5	513	5.2	585	6.0
Finance income and	-86		-52		-280		-246
expenses
Profit after financial items	100		206		233		339

Net sales by revenue type

	3 months ending		12 months ending
SEKm	31 Mar 24	31 Mar 23	31 Mar 24	31 Dec 23
Products	620	653	2,515	2,548
Instruments	164	181	787	804
Service	79	71	310	302
Labtech	863	905	3,612	3,654
Products	1,299	1,265	4,946	4,912
Instruments	242	157	590	505
Service	167	132	660	625
Medtech	1,708	1,554	6,196	6,042
Group items	-1	-2	-10	-11
Total	2,570	2,457	9,798	9,685

Sales per country

	3 months ending		12 months ending
	31 Mar 24	31 Mar 23	31 Mar 24	31 Dec 23
UK	400	299	1,287	1,186
Ireland	342	305	1,151	1,114
Sweden	276	298	1,078	1,100
Spain	232	213	845	826
Denmark	161	173	781	793
Norway	200	208	776	784
Italy	157	157	662	662
Finland	131	145	563	577
Rest of Europe	567	587	2,331	2,351
Rest of the world	104	72	324	292
Total	2,570	2,457	9,798	9,685

Consolidated income statement, condensed

Income statement	3 months ending			12 months ending
SEKm	31 Mar 24	31 Mar 23	31 Mar 24	31 Dec 23
Net sales	2,570	2,457	9,798	9,685
Cost of sales	-1,602	-1,531	-6,157	-6,086
Gross profit	968	926	3,641	3,599
Selling expenses	-615	-597	-2,496	-2,478
Administrative expenses	-150	-145	-593	-588
Research and Development	-23	-24	-166	-167
Other operating income and expenses	6	98	127	219
Operating profit	186	258	513	585
Financial income and expenses	-86	-52	-280	-246
Profit after financial items	100	206	233	339
Tax	-37	-32	-152	-147
Profit for the period	63	174	81	192
Attributable to:
Equity holders of the Parent Company	62	174	78	190
Non-controlling interests	1	0	3	2
Earnings per share (EPS) before dilution, SEK	0.52	1.43	0.65	1.56
Earnings per share (EPS) after dilution, SEK	0.52	1.42	0.65	1.56
Average number of shares after repurchases '000s	121,857	121,855	121,857	121,856
Number of shares at end of the period, '000	121,857	121,857	121,857	121,857
EBITA	291	366	1,060	1,135
Depreciations and write-down included in operating
expenses
- property, plant and equipment	-93	-82	-380	-369
- intangible non-current assets from acquisitions	-97	-99	-448	-450
- other intangible non-current assets	-8	-9	-99	-100

Statement of comprehensive income

	3 months ending		12 months ending
SEKm	31 Mar 24	31 Mar 23	31 Mar 24	31 Dec 23
Profit for the period	63	174	81	192
Components that may be reclassified to profit for the period
Foreign currency translation differences for the period	156	44	71	-41
Components that can not be reclassified to profit for the period
Revaluations of defined benefit pension plans	–	–	-4	-4
Tax attributable to items not to be reversed in profit	–	–	1	1
or loss
Other comprehensive income	156	44	68	-44
Total comprehensive income	219	218	149	148
Attributable to:
Equity holders of the Parent Company	218	218	145	145
Non-controlling interests	1	0	4	3

Consolidated balance sheet, condensed

SEKm	31 Mar 24	31 Dec 23	31 Mar 23
Goodwill	5,476	5,303	5,366
Other intangible non-current assets	2,658	2,662	3,064
Property, plant and equipment	1,147	1,051	909
Financial non-current assets	157	121	159
Total non-current assets	9,438	9,137	9,498
Inventories	1,674	1,653	1,724
Current receivables	1,870	1,683	1,675
Cash and cash equivalents	280	272	346
Total current assets	3,824	3,608	3,745
Total assets	13,262	12,745	13,243
Total equity	5,167	4,960	5,172
Interest-bearing provisions	180	174	202
Non-interest-bearing provisions	417	415	443
Non-current interest-bearing liabilities	2,993	2,886	2,841
Non-current non-interest-bearing liabilities	5	5	8
Total non-current liabilities	3,595	3,480	3,494
Non-interest-bearing provisions	47	46	49
Current interest-bearing liabilities	2,544	2,403	2,705
Current non-interest-bearing liabilities	1,909	1,856	1,823
Total current liabilities	4,500	4,305	4,577
Total equity and liabilities	13,262	12,745	13,243

Statement of change in Group equity

	1 Jan 24 – 31 Mar 24			1 Jan 23 – 31 Dec 23
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	4,958	2	4,960	4,968	3	4,971
Exercised and issued call options	-12	–	-12	-9	–	-9
Dividend	–	–	–	-146	-4	-150
Total comprehensive income	218	1	219	145	3	148
Amount at the end of the period	5,164	3	5,167	4,958	2	4,960

Cash flow statement, condensed

Cash flow statement, condensed	3 months ending		12 months ending
SEKm	31 Mar 24	31 Mar 23	31 Mar 24	31 Dec 23
Profit after financial items	100	206	233	339
Adjustment for items not included in cash flow	161	102	767	708
Income tax paid	-29	-52	-187	-210
Changes in working capital	-135	-151	-48	-64
Cash flow from operating activities	97	105	765	773
Net investments in non-current assets	-61	-65	-282	-286
Acquisitions and disposals	-7	-16	-22	-31
Cash flow from investing activities	-68	-81	-304	-317
Dividend paid to shareholders	–	–	-146	-146
Dividend paid to non-controlling interests	–	–	-4	-4
Exercised and issued call options	-12	-17	-4	-9
Borrowings	25	23	176	174
Repayments on loans	-19	-21	-405	-407
Other financing activities	-44	-39	-167	-162
Cash flow from financing activities	-50	-54	-550	-554
Cash flow for the period	-21	-30	-89	-98
Cash and cash equivalents at beginning of period	272	376	346	376
Exchange differences on cash and cash equivalents	29	0	23	-6
Cash and cash equivalents at end of the period	280	346	280	272

Key financial indicators

12 months up until
31 Mar 24	31 Dec 23	31 Mar 23	31 Dec 22	31 Dec 21
9,798	9,685	8,962	9,084	7,993
1,440	1,504	1,469	1,530	1,474
1,060	1,135	1,152	1,221	1,273
10.8%	11.7%	12.9%	13.4%	15.9%
-8%	-7%	-17%	-4%	59%
46%	50%	55%	61%	95%
81	192	432	483	721
2%	4%	9%	10%	22%
5,437	5,192	5,402	5,410	3,870
3.8	3.5	3.7	3.5	2.6
1.1	1.0	1.0	1.1	0.9
39%	39%	39%	38%	40%
2,297	2,284	2,214	2,157	1,548
2,289	2,301	2,277	2,219	1,802

Key ratio definitions can be found here.

Key financial indicators per share

	12 months up until
	31 Mar 24	31 Dec 23	31 Mar 23	31 Dec 22	31 Dec 21
Earnings per share (EPS), SEK	0.65	1.56	3.54	3.96	6.03
Diluted EPS, SEK	0.65	1.56	3.54	3.95	6.01
Cash flow per share from operating activities, SEK	6.28	6.35	5.60	7.46	8.46
Shareholders' equity per share, SEK	42.38	40.69	42.40	40.76	35.14
Average number of shares after repurchases, '000s	121,857	121,856	121,792	121,779	119,418
Average number of shares adjusted for repurchases and dilution, '000s	121,857	121,861	122,086	122,254	119,966
Number of shares outstanding at end of the period, '000s	121,857	121,857	121,857	121,836	121,953
Number of shares outstanding at end of the period after dilution, '000s	121,857	121,857	122,151	122,312	122,501

Parent company

The Parent Company's net sales for the interim period amounted to SEK 19 m (15) and profit after financial items amounted to SEK -94 m (-20). At the end of the interim period the Parent Company's net financial debt amounted to SEK 4,773 m (4,591). The share capital at the end of the interim period was SEK 62 m (62).

Income statement

	3 months ending			12 months ending
SEKm	31 Mar 24	31 Mar 23	31 Mar 24	31 Dec 23
Net sales	19	15	68	64
Administrative expenses	-22	-19	-87	-84
Operating profit/loss	-3	-4	-19	-20
Interest income/expenses and similar items	-91	-16	116	191
Profit/loss after financial items	-94	-20	97	171
Appropriations	–	-1	79	78
Profit/loss before taxes	-94	-21	176	249
Income tax expense	–	4	-18	-14
Profit/loss for the period	-94	-17	158	235

Balance sheet

Balance sheet, SEKm	31 Mar 24	31 Dec 23	31 Mar 23
Intangible non-current assets	0	0	0
Tangible non-current assets	0	0	0
Non-current financial assets	7,873	7,804	7,981
Total non-current assets	7,873	7,804	7,981
Current receivables	406	593	495
Total current assets	406	593	495
Total assets	8,279	8,397	8,476
Restricted equity	62	62	62
Unrestricted equity	2,543	2,642	2,528
Total equity	2,605	2,704	2,590
Interest-bearing long-term liabilities	2,655	2,560	2,589
Non-interest-bearing long-term liabilities	2	2	2
Total long-term liabilities	2,657	2,562	2,591
Interest-bearing short-term liabilities	2,974	2,994	3,264
Non-interest-bearing short-term liabilities	43	137	31
Total short-term liabilities	3,017	3,131	3,295
Total equity and liabilities	8,279	8,397	8,476

Fair values on financial instruments

		31 Mar 24 31 Dec 23
	Carrying			Carrying
SEKm	amount	Level 2	Level 3	amount	Level 2	Level 3
Derivatives measured at fair value through profit or loss	1	1	–	0	0	–
Total financial assets at fair value per level	1	1	–	0	0	–
Derivatives measured at fair value through profit or loss	0	0	–	4	4	–
Contingent considerations	82	–	82	87	–	87
Total financial liabilities at fair value per level	82	0	82	91	4	87

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. 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 24	31 Mar 23	31 Mar 24	31 Dec 23
Carrying amount, opening balance	87	266	156	266
Acquisitions during the period	–	–	5	5
Consideration paid	-7	-16	-7	-16
Revaluation through profit or loss	–	–	2	2
Reversed through profit or loss	–	-83	-64	-147
Interest expenses	0	-4	-4	-8
Exchange differences	2	-7	-6	-15
Carrying amount, closing balance	82	156	82	87

Pledged assets and contingent liabilities in the Group

SEKm	31 Mar 24	31 Dec 23	31 Mar 23
Contingent liabilities	54	51	52

Reconciliation key ratios

	Profit/loss after tax attributable to shareholders, as a percentage of
Return on equity	shareholders' proportion of average equity.
	31 Mar 24	31 Dec 23	31 Mar 23
Profit/loss for the period (roll 12 months)	81	192	429
Average equity	5,158	5,117	4,803
Return on equity	81/5,158=2%	192/5,117=4%	429/4,803=9%
Return on working capital (P/WC)	EBITA in relation to average working capital.
	31 Mar 24	31 Dec 23	31 Mar 23
EBITA	1,060	1,135	1,152
Average working capital (WC)	2,320	2,290	2,086
P/WC	1,060/2,320=46%	1,135/2,290=50%	1,152/2,086=55%
EBITDA	Operating profit before depreciation, amortization and write down.
	31 Mar 24	31 Dec 23	31 Mar 23
Operating profit (12 months rolling)	513	585	728
Depreciation, amortization and write-down	927	919	741
EBITDA	1	1,504	1,469
EBITA	Operating profit before amortization and write-down of intangible assets.
	31 Mar 24	31 Dec 23	31 Mar 23
Operating profit (12 months rolling)	513	585	728
Amortization and write-down of intangible	547	550	424
assets EBITA	1	1,135	1,152
EBITA margin	EBITA in relation to net sales
	31 Mar 24	31 Dec 23	31 Mar 23
EBITA	1,060	1,135	1,152
Net sales (12 months rolling)	9,798	9,685	8,962
EBITA margin	1,060/9,798=10.8%	1,135/9,685=11.7%	1,152/8,962=12.9%
Definitions
		Operating profit before amortization and write-down of
EBITA	intangible assets.
EBITDA	Operating profit before depreciation, amortization and write
	down
	Shareholders' proportion of equity divided by the number of
Equity per share	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
	Shareholders' proportion of profit/loss for the year in relation to the
Earnings per share (EPS)	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
Equity ratio	and cash equivalents. Equity as a percentage of total assets.

The key figures presented above are central in order to understand and evaluate AddLifes business and financial position. The key figures are presented in the "Key financial indicators" table and they are commented on in other parts of the interim report. For additional information regarding chosen key ratios, please refer to AddLife's annual report 2023. The comparison figures for income and expense items relate to values for the period January–March 2023 and for balance sheet items as at 31 December 2023 if nothing else is stated.

The share

The share capital at the end of the interim period amounted to SEK 62 m (62).

The number of repurchased own shares amounts to 586,189 Class B, corresponding to 0.5 percent of the total number of shares and 0.4 percent of the votes. The average purchase price for shares held in treasury amounts to SEK 100.56 per share. The average number of treasury shares held during the interim period was 590,025 (595,500). The share price at March 31, 2024 was SEK 112.00.

SHARE DEVELOPMENT IN ADDLIFE

Jan-Mar 2024
94.85
116.90
17,992,772
10,629,918
45,328

AddLife has three outstanding call option programmes corresponding to a total of 605,800 Class B shares. Issued call options on repurchased shares have resulted in a calculated dilution effect based on average share price for the interim period of approximately 0.0 percent (0.1). During the interim period 1,750 options in the 2020/2024 program have been redeemed, corresponding to 7,000 B shares and 243,450 options that were outstanding have been repurchased at a price corresponding to market value.

Outstanding programmes	Number of warrants	Corresponding number of shares	Percentage of total number of shares	Exercise price	Exercise period
2023/2027	205,800	205,800	0.2%	155.99	1 Jun 2026 - 26 Feb 2027
2022/2026	150,000	150,000	0.1%	250.07	9 Jun 2025 - 27 Feb 2026
2021/2025	250,000	250,000	0.2%	259.00	10 Jun 2024 - 28 Feb 2025
Total	605,800	605,800

			Share in %
Shareholders 2024-03-31	Class A-shares	Class B-shares	of capital	of votes
Roosgruppen AB	2,252,376	3,547,339	4.7	15.9
Tom Hedelius	2,066,572	23,140	1.7	12.6
SEB Fonder	0	9,185,004	7.3	5.6
Verdipapirfond Odin	0	8,930,008	7.3	5.5
AMF - Försäkring och Fonder	0	8,819,988	7.2	5.4
Första AP-fonden	0	6,074,667	5.0	3.7
State Street Bank & Trust Company	0	5,828,852	4.8	3.6
Cliens Fonder	0	5,466,446	4.5	3.3
JP Morgan Chase Bank	0	3,102,572	2.5	1.9
Fjärde AP-fonden	0	3,037,537	2.5	1.9
Total the 10 biggest shareholders	4,318,948	54,015,553	47.5	59.4
Other shareholders	296,188	63,233,372	52.0	40.2
Total outstanding shares	4,615,136	117,248,925	99.5	99.6
Repurchased own shares Class B	-	586,189	0.5	0.4
Total registered shares	4,615,136	117,835,114	100.0	100.0

On March 31 2024, the number of shareholders amounted to 12,228, where of 64.3 percent are Swedish owners with respect to capital share. The 10 largest shareholders controlled 47.5 percent of number of capital and 59.4 percent of votes.

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 annual report 2023 for AddLife AB were also used in the interim report. The amendments to IFRSs applicable from 1 January, 2024 have no effects to AddLife's financial reports for the interim period ended March 31, 2024.

Information on Global Minimum Tax

The group is covered by the OECD's model rules for Pillar II. Legislation on Pillar II has been adopted in Sweden, where AddLife AB is based, and entered into force on 1 January 2024. The Group applies the exemption for reporting and providing information on deferred tax assets and liabilities related to income taxes from Pillar II, which is specified in the amendments to IAS 12 issued in May 2023.

The group's exposure to legislation within Pillar II has been calculated and analyzed. The company assesses that the effect is not material in the first quarter of 2024.

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 chosen key ratios, please refer to AddLife's annual report 2023. 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 significant events for the group have 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 2023. The parent company is indirectly affected by the above risks and uncertainties through its function in the group.

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, shipping costs, energy costs and greater uncertainty about interest rate developments. We follow the development in the Middle East but, at this point in time, our assessment is that this doesn't have a significant impact on the group.

Stockholm April 24, 2024

Fredrik Dalborg President and CEO

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

Video conference

Investors, analysts and the media are invited to a video conference where CEO Fredrik Dalborg and CFO Christina Rubenhag 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.

The video conference will be held at 9:00 a.m. on April 24, 2024

If you wish to participate via video conference, please follow this link>>

The presentation is also available on AddLife YouTube >>

Financial calendar

• The Annual General Meeting (AGM) of AddLife AB (publ) will be held on 8 May 2024, 4 PM, Stockholm
• The interim report for 1 January 30 June 2024 will be published on 15 July 2024
• The interim report for 1 January 30 September 2024 will be published on 23 October 2024
• The year-end report for 1 January 31 December 2024 will be published on 5 February 2025

For further information, please contact: Fredrik Dalborg, President and CEO, +46 70 516 09 01 Christina Rubenhag, CFO, +46 70 546 72 22

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.

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 24, 2024.

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