ADDvise

Interim report January 1–June 30, 2022

April–June 2022

Orders received for the period was SEK 260.9 million (122.8), an increase of 112.5 %. Organic growth was 22.3 %.
Net revenue for the period was SEK 231.9 million (117.6), an increase of 97.1 %. Organic growth was 3.1 %.
Adjusted EBITDA for the period was SEK 31.8 million (15.5)
EBITDA for the period was SEK 34.3 million (15.8)
Profit/loss for the period was SEK 19.1 million (0.1)
Basic earnings per share for the period amounted to SEK 0.11 (0.00)
Cash flow from Operations¹ for the period was SEK 20.3 million

January–June 2022

Orders received for the period was SEK 391.7 million (220.3), an increase of 77.8 %. Organic growth was 6.0 %.
Net revenue for the period was SEK 394.3 million (205.4), an increase of 92.0 %. Organic growth was 3.5 %.
Adjusted EBITDA for the period was SEK 53.1 million (23.5)
EBITDA for the period was SEK 55.5 million (24.6)
Profit/loss for the period was SEK 19.1 million (2.6)
Basic earnings per share for the period amounted to SEK 0.11 (0.02)
Cash flow from Operations¹ for the period was SEK 22.1 million

SEK THOUSANDS	2022 Apr–Jun²	2021 Apr–Jun³	2022 Jan–Jun²	2021 Jan–Jun³	Rolling 12 months Jul 2021–Jun 2022²,³	2021 Jan–Dec³	Change	Pro forma rolling 12 months Jul 2021–Jun 2022⁴,⁵
Net revenue	231,903	117,645	394,300	205,382	654,871	465,953	40.5%	927,525
EBITDA	34,304	15,766	55,531	24,630	88,162	57,261	54.0%	151,636
EBITDA margin, %	14.8%	13.4%	14.1%	12.0%	13.5%	12.3%	1.2 pp	16.3%
Adjusted EBITDA	31,766	15,543	53,060	23,516	86,602	57,058	51.8%	150,077
Adjusted EBITDA margin, %	13.7%	13.2%	13.5%	11.4%	13.2%	12.2%	1.0 pp	16.2%
EBITA	30,121	13,298	47,683	20,245	74,235	46,797	58.6%	134,148
EBITA margin, %	13.0%	11.3%	12.1%	9.9%	11.3%	10.0%	1.3 pp	14.5%
Profit/loss before tax (EBT)	19,957	778	20,533	4,227	23,965	7,658	212.9%	83,778
Profit/loss for the period	19,050	76	19,120	2,591	19,334	2,805	589.2%	77,647
Adjusted profit/loss for the period	20,821	4,298	26,571	5,922	33,388	12,739	162.1%	91,701
Basic earnings per share (SEK)⁶	0.11	0.00	0.11	0.02	0.12	0.02		0.43
Net debt-to-EBITDA⁷	5.1	4.0	5.1	4.0	5.1	4.0		3.1

The ADDvise Group in brief

ADDvise Group AB (publ) is a leading supplier of equipment to healthcare and research facilities. The Group consists of two business areas, Lab and Healthcare. Sales are global. The Group has a clear acquisition strategy with the aim of raising shareholder value and expanding the business – both geographically and product-wise.

ADDvise Group AB (publ), company reg. no. 556363-2115, Grev Turegatan 30, SE-114 38 Stockholm, Sweden

Telephone +46 (0)8 128 766 00, e-mail: [email protected], website www.addvisegroup.com

CEO'S COMMENTS

ADDvise

CEO's comments

A strong quarter of continued growth

Demand in Q2 was an improvement on Q1, with orders received amounting to SEK 260.9 million (122.8), an increase of 112.5% on Q2 2021. We saw a strong level of organic growth, amounting to 22.3%. Net revenue also increased during the quarter and amounted to SEK 231.9 million (117.6), an increase of 97.1% on the same period last year. In organic terms, the increase was 3.1%.

We have systematically worked on improving our margins. Despite a challenging environment characterized by inflation and price increases, we have been able to strengthen our gross margin. The Group's gross margin during the quarter increased to 60.3% (44.5). This was partly thanks to operational improvements, but also a result of us consolidating acquisitions with a higher gross margin.

The final figure for adjusted EBITDA margin was a strong 13.7% (13.2), and as mentioned in the previous report, we will see a gradual improvement in the EBITDA margin during the course of 2022.

The Group's annual turnover on a rolling 12 month pro forma net revenue basis is SEK 927.5 million in with an adjusted EBITDA margin of SEK 150.1 million, which means an adjusted EBITDA margin of 16.2%. The annual turnover is based on all acquired companies being included on a pro forma rolling 12-month basis in Q2 2022.

Our growth brings improved profitability. Thanks to a combination of organic and acquired growth, we continued to grow in Q2, and I firmly believe that we will keep doing so for the rest of the year. We had some currency tailwind during the quarter.

Both the disruption to our supply chains that we saw at the beginning of the year as well as sick leave in our own production units and at our subcontractors that resulted in us having to maintain higher inventory safety margins was reduced somewhat during Q2. The Group's factoring limit was phased out during the year, reducing current liabilities, but this has also had some negative impact on cash flow. Cash flows started to normalize during Q2 and will continue to improve once the effects of Omicron and restrictions have completely subsided. Our cash flows are currently affected by interest expenses for loans intended for acquisitions that have not yet been converted to EBITDA and generating cash flows. Once our acquisition loan financing is fully employed, we will see clear improvements in our cash flows.

The acquisition of Surplus Diabetics and Seebreath means that we achieved pro forma EBITDA of SEK 150 million in Q2, which was one of our previous financial targets. The financial targets recently updated and adopted by the Board mean that we now have a goal of achieving pro forma net revenue of SEK 1 billion in 2022 with an adjusted EBITDA margin of SEK 200 million, both pro forma rolling 12 months.

Healthcare business unit

Despite continued disruption to the supply chains, net revenue for the Healthcare business unit was SEK 170.0 million, an increase of 229.4% on Q2 2021, when it was SEK 51.6 million. Gross margin amounted to 66.0% (50.2). EBITDA was SEK 33.9 million, an increase on Q2 2021, when it was SEK 8.3 million. Growth in the quarter has to some extent been held back by postponed sales in patient management, particularly in the US, alongside continued challenges with material availability and logistics.

Interim report Jan-Jun 2022

CEO'S COMMENTS

ADDvise

Lab business unit

The Lab business area's gross margin was 45.0% compared with Q2 2021 (40.4).

Net revenue amounted to SEK 62.0 million (66.1), while EBITDA amounted to SEK 6.1 million (8.2). There was a good level of demand for the Lab segment's products during the quarter, but the development in net revenue and EBITDA was affected in part by increasing variation between companies and geographies, and in part due to strong comparative figures. The market demand remains at a good level, and my view is that growth will gradually increase during the last two quarters of the year.

Acquisitions

In April, we completed our largest acquisition to date, Surplus Diabetics, which has an excellent platform on the US diabetes market—a market where needs are great and growing. In May, we acquired Seebreath, a leading supplier of carbon dioxide indicators for intubation in emergency healthcare. Although it is a smaller acquisition, it has a strong market position and great margins.

We are continuing to work with our disciplined acquisition strategy, only evaluating companies in the lab and healthcare segment. In addition, all companies we evaluate should have exposure toward structural demographic changes, an approach that makes our underlying business insensitive to the economic cycle and market fluctuations. The purpose of our companies' mission is to save and extend people's lives, and we are very proud of this.

Despite increased market uncertainty, we expect the M&A potential during the rest of 2022 to remain positive. The pricing of companies in the segments and geographies we look at remains attractive. This means that we have good opportunities to continue our growth journey as long as there is a functioning capital market. We have a high level of activity in our acquisition pipeline and work continuously to increase our capacity, giving us a framework for continued, value-creating acquisitions.

Outlook

We operate in a very large and growing market, and we have a strong offering. We have continued to work hard in 2022 with both existing and new companies within the Group, while having a promising acquisition pipeline. Supply chains disruption and rising inflation are contributing to a higher business risk going forward, but the strong second quarter added comfort to sales and earnings trends in the short term.

Our mission is to improve, prolong and in the end, save human lives and doing so in a profitable, sustainable way. As part of this work, the board recently adopted 2030 sustainability goals which together with our financial goals steer the company towards a long-term profitable and sustainable growth.

ADDvise's long-term revenue growth is driven mainly by demographic changes, such as a growing and aging population, increased prevalence of chronic illnesses, and greater investment in health and healthcare as well as in research and development. Our business model has historically shown good resilience, and the senior management of our subsidiaries are skilled at navigating challenging market conditions. The Group's decentralized structure with fast and flexible companies, together with a strong order book, constitutes a stable platform for continued sustainable and profitable growth in the longer term.

Rikard Akhtarzand,
CEO, ADDvise Group AB (publ)

www.industrydocuments.ucsf.edu/docs/kkx0226

About ADDvise

Adduke G. G. Smith

ADDvise Group AB (publ) is an expansive group that supplies integrated solutions in the form of products and services to healthcare and research facilities. The ADDvise Group serves customers in both the private and public sectors. Sales are global.

ADDvise's operations are divided into two business units, Lab and Healthcare, with a highly decentralized organization. Each company operates as a distinctly separate unit and is run independently in order to maintain its own inventiveness and entrepreneurial flair.

Diversified customer base and product portfolio

Although healthcare is an area where there is constant demand for more care at lower cost, sales of medtech products remain relatively stable and non-cyclical. Most sales are to the public sector, where the demand for care is steadily increasing and equipment is required in order to provide the care required.

ADDvise's diversified product portfolio provides us with a broad customer base that includes private healthcare providers that deliver publicly funded care, private clinics that are funded through insurance and, of course, research facilities and other players within life science. In a world of ever-growing requirements for quality, precision and cleanliness, ADDvise has products to meet every requirement within life science and healthcare.

Lab business unit

Within Lab, ADDvise is a turnkey supplier of laboratory furnishings and apparatus to research facilities in both the public and private sectors.

Healthcare business unit

ADDvise supplies equipment and consumable materials to healthcare units in Sweden, Europe and North America. Our complete range includes products and customers throughout the healthcare chain, from self-care and home healthcare to surgery and acute, intensive and emergency medical service care.

Our acquisition strategy

Acquisition is one of the most important components of the ADDvise Group's growth strategy. The purpose of the acquisitions is to create critical mass in the different industries in which the Group does business. The critical mass and industrial logic underlying the acquisitions strengthens existing operations and allows new market share to be gained.

The industrial logic in the acquisitions will create long-term value for the company's shareholders. Focus is directed at companies within the life science sector, which constitutes the core of the ADDvise Group. Under this strategy, the attitude toward acquisitions is rather opportunistic.

The ADDvise Group's Board of Directors and executive management have worked with acquisitions over a long period. This means that the competence necessary to identify a good acquisition and then integrate the company is available internally. We are strong with regard to readiness to take on board acquired assets, companies and company structures.

The payment structure applied by the ADDvise Group consists mainly of a mix of cash, shares and a supplementary purchase price. We use this payment model partly to create an incentive for the seller to continue assuming responsibility for the development of the company after the sale has taken place, but also to meet the price expectations of the seller.

The companies that ADDvise primarily focuses on are mature companies with a history of good cash flows in more-or-less mature industries. The level of risk in the company must be relatively low. The size of the candidates may vary.

Share and bond

The company's class A share is listed at the S SME trading venue, on the Nasdaq First North Premier Growth Market Sweden. The stock short name is ADDV A and the share's ISIN code is SE0001306119. One (1) class A share equals one (1) vote.

The company's class B share is listed at the S SME trading venue, on the Nasdaq First North Premier Growth Market Sweden. The stock short name is ADDV B and the share's ISIN code is SE0007464862. One (1) class B share equals one-tenth (1/10) of a vote.

The company's bonds are registered for trading on the Corporate Bond List on Nasdaq Stockholm. The bonds' short name is ADDV02 with ISIN code SE0015222088.

Employees and operational organization

The number of employees at the end of the reporting period was 348 (235).

The ADDvise Group has a shared organization with an executive management consisting of:CEO, Rikard AkhtarzandCFO, Sebastian RobsonGeneral Counsel, Hanna MyhrmanCOO, Fredrik Mella

Legal structure

The parent company ADDvise Group AB (publ), company registration number 556363-2115, was registered on July 6, 1989, and has its registered office in Stockholm. At the end of the reporting period, ADDvise had 28 subsidiaries. Operations are conducted at the parent company and all subsidiaries.

The Group's development

Group income and performance

April--June 2022

Orders received for the period totaled SEK 260.9 million (122.8), an increase of 112.5 % compared with the same period of the previous year^{8}. Organic growth was 22.3 %.

Net revenue for the period was SEK 231.9 million (117.6), an increase of 97.1 % compared with the same period of the previous year. Organic growth was 3.1 %.

EBITDA for the period was SEK 34.3 million (15.8). Adjusted EBITDA for the period was SEK 31.8 million (15.5). Acquisition costs for completed acquisitions had a negative impact on EBITDA during the period of SEK 1.0 million (0.6). EBITDA for the period was positively impacted by state subsidies and similar items related to Covid-19 by SEK 3.5 million (0.9).

EBITA for the period was SEK 30.1 million (13.3). Operating profit/loss for the period was SEK 28.5 million (12.4). Profit/loss after tax was SEK 19.1 million (0.1). Adjusted profit/loss after tax for the period amounted to SEK 20.8 million (4.3). Acquisition costs for completed acquisitions had a negative impact on profit/loss after tax during the period of SEK 5.3 million (2.5), with SEK 1.0 million (0.6) reported in the item Other external expenses and SEK 4.3 million (1.9) reported in the item Net financial items. Profit/loss after tax was positively impacted by state subsidies and similar items related to Covid-19 by SEK 3.5 million (0.9). Basic earnings per share amounted to SEK 0.11 (0.00) for the period.

January--June 2022

Orders received for the period totaled SEK 391.7 million (220.3), an increase of 77.8 % compared with the same period of the previous year^{8}. Organic growth was 6.0 %.

Net revenue for the period was SEK 394.3 million (205.4), an increase of 92.0 % compared with the same period of the previous year. Organic growth was 3.5 %.

EBITDA for the period was SEK 55.5 million (24.6). Adjusted EBITDA for the period was SEK 53.1 million (23.5). Acquisition costs for completed acquisitions had a negative impact on EBITDA during the period of SEK 1.2 million (0.6). EBITDA for the period was positively impacted by state subsidies and similar items related to Covid-19 by SEK 3.7 million (1.8).

EBITA for the period was SEK 47.7 million (20.2). Operating profit/loss for the period was SEK 45.0 million (18.4). Profit/loss after tax was SEK 19.1 million (2.6). Adjusted profit/loss after tax for the period amounted to SEK 26.6 million (5.9). Acquisition costs for completed acquisitions had a negative impact on profit/loss after tax during the period of SEK 11.1 million (2.5), with SEK 1.2 million (0.6) reported in the item Other external expenses and SEK 9.9 million (1.9) reported in the item Net financial items. Profit/loss after tax was positively impacted by state subsidies and similar items related to Covid-19 by SEK 3.7 million (1.8). Basic earnings per share amounted to SEK 0.11 (0.02) for the period.

THE GROUP'S DEVELOPMENT

ADDvise

ADDvise Group
EBITDA SEK million and EBITDA margin rolling 12-month period
SEK million
100
80
50
20
10
0
2016
2017
2018
2019
2020
2021
2022
EBITDA SEK million rolling 12-month period — EBITDA margin % rolling 12-month period

ADDvise Group
Orders received SEK million per quarter and rolling 12-month period
SEK million
300
50
20
10
0
2016
2017
2018
2019
2020
2021
2022
Orders received SEK million per quarter
— Orders received SEK million rolling 12-month period

ADDvise Group
Net revenue SEK million per quarter and rolling 12-month period
SEK million
300
50
20
10
0
2016
2017
2018
2019
2020
2021
2022
Net revenue by geographic market 2022
SEK million per share
50%
20%
10%
12%
14%
16%
18%
19%
20%
Net revenue SEK million rolling 12-month period

ADDvise Group
Net revenue by geographic market 2022
Asia 10.6%
50%
20%
10%
12%
14%
16%
18%
19%
20%
Europe excl
Sweden 16.2%
North America 51.2%
Europe excl
Sweden 16.2%
North America 51.2%

Interim report Jan-Jun 2022

THE GROUP'S DEVELOPMENT

ADDvise

Lab business unit net revenue and profit/loss

April-June 2022

Net revenue for the business unit Lab for the period was SEK 62.0 million (66.1), a decrease of 6.2 % compared with the same period of the previous year. Gross margin for the business unit for the period was 45.0 % (40.4 %). EBITDA⁹ for the business unit for the period was SEK 6.1 million (8.2).

January-June 2022

Net revenue for the business unit Lab for the period was SEK 127.4 million (104.0), an increase of 22.6 % compared with the same period of the previous year. Gross margin for the business unit for the period was 43.2 % (39.7 %). EBITDA⁹ for the business unit for the period was SEK 12.3 million (12.8).

Interim report Jan-Jun 2022

THE GROUP'S DEVELOPMENT

ADDvise

Healthcare business unit net revenue and profit/loss

The Healthcare business unit was expanded in 2022 with the acquisitions of JTECH Medical, Poly Pharma, Seebreath and Surplus Diabetics. See Acquisitions 2022 and Note 5 Business combinations.

April-June 2022

Net revenue for the business unit Healthcare for the period was SEK 169.9 million (51.6), an increase of 229.4 % compared with the same period of the previous year. Gross margin for the business unit for the period was 66.0 % (50.2 %). EBITDA⁹ for the business unit for the period was SEK 33.9 million (8.3).

January-June 2022

Net revenue for the business unit Healthcare for the period was SEK 266.9 million (101.4), an increase of 163.2 % compared with the same period of the previous year. Gross margin for the business unit for the period was 63.7 % (47.6 %). EBITDA⁹ for the business unit was SEK 49.5 million (12.9).

Interim report Jan-Jun 2022

Financial position

Cash and cash equivalents

Cash and cash equivalents at the end of the period totaled SEK 105.0 million (115.5). At the end of the period, the Group had an overdraft facility of SEK 33.3 million (18.1), which was utilized in the amount of SEK 3.8 million (6.7).

Short-term investments

Short-term investments totaled SEK 0.0 million (0.0) at the end of the period.

Net debt

Net debt at the end of the period totaled SEK 450.7 million (200.6). The ratio of interest-bearing net debt to EBITDA at the end of the period was 5.1 (4.0). This ratio was calculated as at June 30, 2022, using the rolling 12-month EBITDA, from July 2021 up to and including June 2022.

One of the Group's long-term financial targets is for the ratio of interest-bearing net debt to EBITDA not to exceed 3.

EBITDA according to the Group's definition of net debt in relation to EBITDA is not calculated pro forma. This means that the key ratio as of the end of the period is affected by the fact that most of the year's acquisitions and the previous year's acquisitions have not contributed EBITDA throughout the full 12 month period, which means that net debt in relation to EBITDA is increased. Pro forma EBITDA for 12 months, from July 2021 up to and including June 2022 amounted to SEK 151.6 million, but the key ratio uses EBITDA SEK 88.2 million.

At the end of the period, loans and other interest-bearing liabilities due for repayment within one year totaled SEK 28.2 million (47.0). Loans and other interest-bearing liabilities due for repayment within one year include a bank loan of SEK 12.0 million (11.7), pledged trade receivables of SEK 0.0 million (20.0), utilized overdraft facilities of SEK 3.8 million (6.7) and lease liabilities of SEK 12.4 million (6.6). At the end of the comparison period, liabilities relating to deferred payment of tax as a result of Covid-19 was SEK 1.9 million. Pledged trade receivables and overdraft facilities are classified as short-term borrowing, but this portion of short-term borrowing is continuously refinanced.

At the end of the period, loans due for repayment after one year or more totaled SEK 527.5 million (269.0). Loans due for repayment after one year or more include the Group's bond loan of SEK 486.7 million (242.8), a bank loan of SEK 1.1 million (1.6) and lease liabilities of SEK 39.8 million (24.6). The increase in lease liabilities is partly attributable to recently acquired subsidiaries.

Bond term sheet net debt

The bond loan issued by ADDvise in May 2021 is subject to conditions linked to indebtedness. A calculation is made of net debt in relation to EBITDA. The definition of net debt and EBITDA in the bond term sheet is different from the Group's key performance indicators. In the table on page 1, the net debt/EBITDA ratio in the pro forma column for rolling 12-months from July 2021--June 2022 is calculated in accordance with the terms of the bond. For the calculation of net debt and EBITDA in accordance with the terms of the bond, please refer to Definition of key performance indicators.

Cash flow April--June 2022

Operating cash flow for the period was SEK 12.9 million (-6.9). During the comparison period, ADDvise paid off liabilities of SEK 5.8 million relating to deferred payment of tax as a result of Covid-19. The effect of the payment of this deferral is reported in the consolidated statement of cash flows under operating cash flow.

Cash flow from Operations for the period amounted to SEK 20.3 million. Comparative figures have not been calculated, as 2020 and 2021 have been affected by the covid-19 pandemic to a greater extent than 2022. A comparison would therefore reflect the effects of the pandemic and not only developments in business operations.

As of the interim report for January--March 2022, cash flow from Operations is presented, which is cash flow from the Group's business operations, and where items attributable to acquisition activities having an impact on cash flow have been eliminated. For the calculation of cash flow from Operations, see Definition of key performance indicators.

Cash flow for the period totaled SEK -169.7 million (56.3). The acquisitions of Seebreath and Surplus Diabetics were completed during the period. Injections of cash and cash equivalents from the acquired companies at the time of consolidation of the new acquisitions in the Group totaled SEK 1.0 million (10.9) during the period. For further information, see Note 5 Business combinations.

Cash flow January--June 2022

Operating cash flow for the period was SEK -0.2 million (-8.2). During the comparison period, ADDvise paid off liabilities of SEK 10.7 million relating to deferred payment of tax as a result of Covid-19. The effect of the payment of this deferral is reported in the consolidated statement of cash flows under operating cash flow.

Cash flow from Operations for the period amounted to SEK 22.1 million. Comparative figures have not been calculated, as 2020 and 2021 have been affected by the covid-19 pandemic to a greater extent than 2022. A

THE GROUP'S DEVELOPMENT

ADDvise

comparison would therefore reflect the effects of the pandemic and not only developments in business operations.

Cash flow for the period totaled SEK -223.4 million (75.1). The acquisitions of JTECH Medical, Poly Pharma, Seebreath and Surplus Diabetics were completed during the period. Injections of cash and cash equivalents from the acquired companies at the time of consolidation of the new acquisitions in the Group totaled SEK 4.4 million (10.9) during the period. For further information, see Note 5 Business combinations. During the period, ADDvise received SEK 100.0 million before issue costs in connection with the issue of new class B shares. For further information, see Significant events during the reporting period.

Equity

Equity at the end of the period totaled SEK 393.1 million (118.8), equating to SEK 2.18 (0.85) per share outstanding at the end of the period.

At the end of the reporting period, the company's equity was entirely attributable to the shareholders of the parent company.

Equity ratio

The equity ratio at the end of the period was 27.3% (21.7%).

Acquisitions 2022

Poly Pharmaceuticals Inc

On February 12, 2022, ADDvise entered into a share purchase agreement with the shareholders of Poly Pharmaceuticals Inc (Poly Pharma) relating to the acquisition of 100% of the shares in Poly Pharma. This acquisition was completed on February 18, 2022. The company is consolidated in the ADDvise Group from February 12, 2022.

Poly Pharma is an American pharmaceutical company specializing in the development, production and marketing of over-the-counter generic pharmaceuticals for treatment of coughs, colds, allergies and sinusitis, and for urological health and pain relief. Sales are mainly to pharmacies and general practitioners. The company markets and sells 20 proprietary pharmaceuticals in the U.S. market, including Folite, Deconex, Poly Tussin, Alahist and Poly Hist.

Poly Pharma's revenue for the last 12 months (LTM) per September 30, 2021, amounted to approximately USD 8.3 million, with an EBITDA of approximately USD 2.0 million, corresponding to an EBITDA margin of approximately 24.4 percent.

The purchase price for Poly Pharma amounts to a total of USD 13.0 million, divided into an initial payment of USD 7.0 million, and two potential earn-outs that at the time of acquisition are estimated to be USD 1.0 million each, given that the sellers achieve certain predetermined targets. The purchase price also includes a holdback amount of USD 4.0 million with 24 months maturity.

The financing of the acquisition was made through own funds. ADDvise assesses that the acquisition will have a positive impact on ADDvise earnings per share during the financial year 2022.

For further information about the acquisition, see Note 5 Business combinations.

JTECH Medical

On March 3, 2022, ADDvise entered into a share purchase agreement with the shareholder of JTECH Medical (JTECH) regarding the acquisition of 100 percent of the shares in JTECH. This acquisition was completed on March 3, 2022. The company is consolidated in the ADDvise Group from March 3, 2022.

JTECH is an American medtech company specializing in developing software and instruments to quantify patients' mobility, pain and strength in muscles in the rehabilitation of muscular ailments. The company's products are mainly used by chiropractors, doctors and physiotherapists. The products are sold globally.

JTECH is based in Salt Lake City, Utah, USA. JTECH's revenue for 2021 amounted to approximately USD 3.2 million, with an EBITDA of approximately USD 1.1 million, corresponding to an EBITDA margin of approximately 34.3 percent. The company's revenue consists partly of license revenue from the software and partly of revenue from the sale of associated instruments.

The purchase price for JTECH amounts to USD 7.3 million, divided into an initial purchase price of USD 4.5 million and two possible earn-outs of a maximum of USD 1.0 million and USD 1.2 million respectively, provided that the seller achieves predetermined targets. The purchase price also includes an interest-free promissory note of USD 0.6 million with a maturity of 24 months.

Interim report Jan-Jun 2022

THE GROUP'S DEVELOPMENT

ADDvise

The financing of the acquisition was made through own funds. ADDvise assesses that the acquisition will have a positive impact on ADDvise earnings per share during the financial year 2022.

For further information about the acquisition, see Note 5 Business combinations.

Surplus Diabetics Inc

On April 19, 2022, ADDvise entered into a share purchase agreement with the owners of Surplus Diabetics Inc (Surplus Diabetics) regarding the acquisition of all the outstanding shares of Surplus Diabetics. This acquisition was completed on April 19, 2022. The company is consolidated in the ADDvise Group from April 19, 2022.

Surplus Diabetics is an American medtech company, specialized in supplying the U.S. market with diabetes products, such as glucose monitors, insulin and test stripes. Sales are made to pharmacies, wholesalers and directly to consumers. Surplus Diabetics is based in Deerfield Beach, Florida.

Surplus Diabetics' revenue for the last twelve months as of November 30, 2021, amounted to USD 18.1 million, with an adjusted EBITDA of USD 3.2 million, corresponding to an adjusted EBITDA margin of 17.7 percent.

The purchase price amounts to a total of USD 19.5 million, divided into an initial purchase price of USD 16.0 consisting of USD 15.5 million in cash and an interest-free promissory note of USD 0.5 million. In addition, two potential earn-outs of maximum USD 1.6 million and USD 1.9 million respectively, given that Surplus Diabetics achieves certain predetermined targets based on materially higher financial targets than the company's revenue for the last twelve months as of November 30, 2021.

The financing of the acquisition was made through own funds. ADDvise assesses that the acquisition will have a positive impact on ADDvise earnings per share during the financial year 2022.

For further information about the acquisition, see Note 5 Business combinations.

Seebreath AB

On May 16, 2022, ADDvise entered into a share purchase agreement with the owners of Seebreath AB (Seebreath) regarding the acquisition of all the outstanding shares of Seebreath. This acquisition was completed on May 16, 2022. The company is consolidated in the ADDvise Group from May 16, 2022.

Seebreath is a Swedish medtech company developing and producing colorimetric CO2-indicating products used in respiratory care. The company's products are FDA approved and sold on the American market through distributors.

Seebreath's revenue for the financial year 2021, amounted to SEK 12.0 million, with an adjusted EBITDA of SEK 8.0 million, corresponding to an adjusted EBITDA margin of 66.7 percent.

The purchase price is divided into an initial purchase price of SEK 29.0 million and three potential earn-outs given that the company achieves certain predetermined targets. The targets are set higher than the company's financial performance 2021. The maximum amount of the first and second earn-out is SEK 4.25 million respectively. The third earn-out is not fixed, and is based on that the company's revenue for the financial years 2022 and 2023 combined is higher than the sellers' financial forecasts.

The financing of the acquisition was made through own funds. ADDvise assesses that the acquisition will have a positive impact on ADDvise earnings per share during the financial year 2022.

For further information about the acquisition, see Note 5 Business combinations.

Intangible non-current assets April-June 2022

The change in goodwill during the period was SEK 159.7 million (14.8). The change in trademarks during the period was SEK 122.0 million (10.7). For information about goodwill and trademarks attributable to acquisitions during this year, see Note 5 Business combinations.

Intangible non-current assets other than goodwill and trademarks account for the majority of capitalized expenditure for development work and similar activities. Investments in capitalized expenditure for development work and similar activities during the period totaled SEK 1.2 million (0.4).

Investments in intangible non-current assets other than goodwill, trademarks and capitalized expenditure for development work and similar activities during the period totaled SEK 0.3 million (0.3).

Intangible non-current assets January-June 2022

The change in goodwill during the period was SEK 283.7 million (17.2). The change in trademarks during the period was SEK 188.4 million (10.8). For information about goodwill and trademarks attributable to acquisitions during this year, see Note 5 Business combinations.

Investments in intangible non-current assets other than goodwill, trademarks and capitalized expenditure for development work and similar activities during the period totaled SEK 0.3 million (0.3).

Interim report Jan-Jun 2022

THE GROUP'S DEVELOPMENT

ADDvise

Property, plant and equipment April-June 2022

Investments in property, plant and equipment during the period totaled SEK 1.3 million (8.4). Investments in property, plant and equipment include leased non-current assets in accordance with IFRS 16 Leases.

Property, plant and equipment January-June 2022

Investments in property, plant and equipment during the period totaled SEK 5.0 million (11.8). Investments in property, plant and equipment include leased non-current assets in accordance with IFRS 16 Leases.

Parent company

April-June 2022

Net revenue at the parent company for the period totaled SEK 4.8 million (5.0). Operating profit/loss for the period was SEK -4.3 million (-0.7). The net profit/loss for the period was SEK -8.8 million (-9.4).

January-June 2022

Net revenue at the parent company for the period totaled SEK 12.1 million (10.2). Operating profit/loss for the period was SEK -4.4 million (-1.1). The net profit/loss for the period was SEK -19.2 million (-12.4).

Equity

The balance sheet total was SEK 900.9 million (435.7), of which equity constituted SEK 299.4 million (94.1).

Significant events during the reporting period

ADDvise completes a directed new share issue of approximately SEK 100 million

On March 14, 2022, ADDvise carried out a directed new share issue of 15,384,616 shares of series B, corresponding to approximately SEK 100 million. The subscription price in the directed new share issue was SEK 6.50. A large number of Swedish and international institutional investors participated in the directed new share issue which was oversubscribed.

The subscription price was determined through an accelerated bookbuilding procedure carried out by the Company's financial advisor Pareto Securities AB. It was therefore the board of directors' assessment that the terms for the directed new share issue and the subscription price were in accordance with current market conditions. The subscription price per share of series B in the directed new share issue constituted a discount of approximately 5.9 percent compared to the closing price on Nasdaq First North Premier Growth Market on March 14, 2022 and a premium of approximately 0.9 percent to the VWAP during the last five trading days. Through the directed new share issue ADDvise received approximately SEK 100 million before issue costs.

The reason for the deviation from the shareholders' preferential rights was to perform a capital raise in a time and cost-effective manner and to raise capital at favourable conditions for the Company's continued growth, as well as to diversify the shareholder base with Swedish and international institutional investors. The Board of Directors carefully considered the possibility to carry out a rights issue and concluded that a directed issue was most favourable for the Company and its shareholders in this case due to the reasons set out above.

Through the directed new share issue, the number of outstanding shares increased by 15,384,616 shares, from 165,107,273 shares to 180,491,889 shares. The share capital increased by SEK 1,538,461.6, from SEK 16,510,727.3 to SEK 18,049,188.9. The directed new share issue entailed a dilution of approximately 8.5 percent of the number of shares and 6.2 percent of the number of votes in the company based on the number of shares and votes following the directed new share issue.

In connection with the directed new share issue, the company has undertaken, subject to customary exceptions, not to issue additional shares for a period of 6 months after the announcement of the outcome of the directed new share issue. Shareholding board members, shareholding senior executives and the principal shareholder Per-Arne Åhlgren have undertaken, subject to customary exceptions, not to sell any shares in ADDvise for a period of 90 calendar days after the announcement of the outcome of the directed new share issue.

Bondholders approve amendment to bond terms and conditions

In January 2022, ADDvise successfully conducted the written procedure initiated on December 16, 2021 regarding the Company's up to SEK 500 million senior covered bond loan with ISIN SE0015222088. The company asked for bondholders' approval for certain changes to bond terms.

A sufficient number of bondholders participated in the written procedure in order to form a quorum, and a requisite majority of the bondholders voted in favour to approve the proposal.

Each bondholder received a consent fee in an amount equal to 0.75 per cent of the nominal amount of each bond held by the relevant bondholder on the consent fee record date (as defined in the written procedure) which was January 21, 2022. Settlement of the consent fee occurred on January 28, 2022.

The conditions for payment of the consent fee are specified in detail in the formal and detailed notice of the

Interim report Jan-Jun 2022

THE GROUP'S DEVELOPMENT

ADDvise

Written Procedure and are available on the Company's website, www.addvisegroup.com.

ADDvise acquires JTECH Medical, Poly Pharmaceuticals Inc, Seebreath AB and Surplus Diabetics Inc

In February 2022, ADDvise entered into a share purchase agreement with the shareholders of Poly Pharmaceuticals Inc relating to the acquisition of 100% of the shares in Poly Pharmaceuticals Inc. The acquisition was completed on February 18, 2022.

In March 2022, ADDvise entered into a share purchase agreement with the shareholder of JTECH Medical relating to the acquisition of 100% of the shares in JTECH Medical. The acquisition was completed on March 3, 2022.

In January 2022, ADDvise signed a Letter of Intent regarding an acquisition of Surplus Diabetics Inc, and in April 2022, ADDvise entered into a share purchase agreement with the shareholders of Surplus Diabetics Inc relating to the acquisition of 100% of the shares in Surplus Diabetics Inc. The acquisition was completed on April 19, 2022.

In February 2022, ADDvise signed a Letter of Intent regarding an acquisition of Seebreath AB, and in May 2022, ADDvise entered into a share purchase agreement with the shareholders of Seebreath AB relating to the acquisition of 100% of the shares in Seebreath AB. The acquisition was completed on May 16, 2022.

For further information, see Acquisitions 2022 and Note 5 Business combinations.

Major customer contracts and orders during the reporting period

Order from Design Infinity LCC, a Dubai based pharmaceutical industry interior design contractor, for design and installation of a cleanroom facility for the Himalaya Drug Company based in United Arab Emirates. Order value USD 1.1 million. Delivery is scheduled for 2022.
Allocation decision from Region Stockholm-Gotland for delivery of blood specimen collection equipment during a four-year period starting in 2022. Total value SEK 44.0 million.
Order from Signature Healthcare Consulting Services, LLC, a group providing personalized medical services in primary care, specialty care and hospital care, for systems for vital signs monitoring, in 110 nursing homes. Order value USD 2.0 million. Delivery is scheduled for 2022.
Order from Cadwell Industries, a company specialized in electrodes, consumables, supplies, and accessories for neurology, for wires for electrodiagnostic supplies. Order value USD 1.7 million. Delivery is scheduled for 2022 and 2023.

Major shareholder issues call options to board members, senior executives and certain other employees in ADDvise Group

On January 10, 2022, the ADDvise board of directors was informed that one of ADDvise's major shareholders, Per Åhlgren through GoMobile nu Aktiebolag, has issued call options in ADDvise to board members, senior executives and certain other employees in ADDvise Group. In total, 3,696,666 call options have been issued to eleven persons.

Each call option has been issued at a price of SEK 0.45, which corresponds to the market value based on a Black & Scholes valuation, and gives the holder the right to during the period October 9, 2022 – January 9, 2023 acquire one share of series B in ADDvise at a price of SEK 9.55.

ADDvise has not participated in the issuance of these call options and will not incur any costs as a result of such issuance.

Significant events after the reporting period

Major customer contracts and orders after the reporting period

Allocation decision from Helsinki University Hospital in Finland regarding digital x-ray equipment. Order value EUR 2.4 million. Delivery is scheduled for 2022 and 2023. In accordance with Finnish procurement law the allocation decision can be appealed directly to the procuring unit within two weeks from the date of the allocation decision.

Financial targets

The Board of ADDvise has adopted short-term and long-term financial targets. ADDvise's financial targets must not be mistaken for a forecast.

Short-term financial targets

In the light of the company's continued progress, the Board of Directors of ADDvise have decided to raise the 2022 EBITDA target from the previous target communicated on 23 September 2021. The target was raised on April 7, 2022. For the financial year 2022, rolling 12 months pro forma basis, ADDvise expects to reach an EBITDA of at least SEK 200 million before acquisition costs (adjusted EBITDA).

The previous EBITDA target was at least SEK 150 million on a pro forma basis for 2022. The earlier communicated revenue target of SEK 1 billion in net sales on a pro forma basis before the end of 2022 remains unchanged.

Interim report Jan-Jun 2022

THE GROUP'S DEVELOPMENT

ADDvise

Long-term financial targets

The targets are a level of ambition to be achieved over several years. These targets will be achieved through a combination of organic growth and acquisitions. The targets are divided into four areas: growth, profitability, capital structure and dividend.

Growth

ADDvise must have annual revenue growth of at least 25%. Growth will be achieved organically as well as through acquisitions.

Profitability

ADDvise will aim to achieve an EBITDA margin of 20%.

Capital structure

ADDvise's ratio of interest-bearing net debt to EBITDA must not exceed 3.0.

Dividend

25% of the preceding year's profit, excluding the revaluation of additional purchase considerations, will be distributed to the shareholders.

Sustainability

ADDvise's business concept is to improve, extend and save people's lives. It is a social responsibility that contributes to a more sustainable society. But sustainability for us is more than that. It’s about taking responsibility and make a difference at all levels. When we talk about sustainability, we mean sustainable for the environment, sustainable from a social perspective and sustainable from a business perspective. Together with our subsidiaries, we can do great good.

Sustainability is becoming increasingly fundamental in our pursuit of better business results. In 2022, we will continue to work on developing and improving our sustainability work.

ADDvise has been reporting sustainability-related information to Nasdaq since 2021 and is certified as a Nasdaq ESG Transparency partner. We strive to increase the amount of reported data and improve our impact. ESG stands for Environment, Social, and Governance and is a long-term effort to reduce negative impacts and increase positive impacts in areas.

Sustainability goals by 2030

ADDvise's long-term sustainability goals have a clear connection to the company's vision of contributing to a sustainable society through products and services that improve, prolong and save people's lives.

The sustainability goals, in combination with the financial goals, will ensure that the company steers towards long-term profitable and sustainable growth.

Environment

Reduce the carbon dioxide intensity by 50 %.

Finance / Governance

All companies within the Group must have incentives linked to sustainability-related goals.
100% of the acquisitions must contribute to the UN's sustainability goal no. 3 good health and well-being and meet the requirements of ADDvise policy for sustainable investments.
1.5% of net sales will be set aside for product development of products that improve, prolong, and save people's lives.

Social

Achieve gender equality of people on the board and in senior positions (male and female are represented in the range 40–60%).
All companies within the Group must comply with a code of conduct.
Sick leave max 5%.
Our vision is to work towards Zero workplace accidents.

Interim report Jan-Jun 2022

THE GROUP'S DEVELOPMENT

ADDvise

Notes

Note 1

Cash flow from Operations is now presented in interim reports, from the interim report for January–March 2022. Comparative figures have not been calculated, as 2020 and 2021 have been affected by the covid-19 pandemic to a greater extent than 2022. A comparison would therefore reflect the effects of the pandemic and not only developments in business operations. For the calculation of cash flow from Operations, see Definition of key performance indicators.

Note 2

Companies acquired in 2022 are consolidated in the ADDvise Group from:

Poly Pharmaceuticals Inc February 12, 2022
JTECH Medical March 3, 2022
Surplus Diabetics Inc April 19, 2022
Seebreath AB May 16, 2022

Note 3

Companies acquired in 2021 are consolidated in the ADDvise Group from:

MRC Systems FZE March 28, 2021
MediSuite LLC August 4, 2021
Graham Medical Technologies LLC September 15, 2021
Southern Life Systems Inc November 24, 2021

Note 4

The numbers are pro forma numbers and have not been reviewed by the company's auditor. The numbers are for July 2021 – June 2022 including all acquisitions in the period after July 1, 2021, until the publication of this report.

Note 5

In the pro forma column, the net debt/EBITDA ratio is calculated in accordance with the term sheet for the bond, which is different from the Group's key performance indicators net debt and EBITDA. The calculation of the key performance indicator is described in the Definition of key performance indicators.

Note 6

Earnings per share were adjusted to take into account the outcome of warrants in series 2019/2021 in February 2021, the directed share issue in September 2021 and the directed share issue in March 2022.

Note 7

EBITDA in the key performance indicator Net debt-to-EBITDA is based on a rolling 12-month period.

Note 8

Orders received for 2021 have been recalculated as a result of the one-off order of SEK 50.0 million received in the first quarter of 2020 for the years 2020–2022, instead of being seen as an order received in 2020, now being allocated over 3 years.

Note 9

As of the interim report for January–March 2022, acquisition costs and other acquisition-related items are no longer allocated to the business units. Comparative figures have been restated for comparison periods in 2021 and for the full year 2020. The charts showing the business units' development do not include the restated comparative figures. Also, see Note 4 Segment Reporting.

Interim report Jan–Jun 2022

THE SHARE

ADDvise

Share price trend during the reporting period

Class A share closing price trend 12-month period from Jul 1, 2021 until Jun 30, 2022

Class B share closing price trend 12-month period from Jul 1, 2021 until Jun 30, 2022

Interim report Jan-Jun 2022

FINANCIAL STATEMENTS

ADDvise

Condensed consolidated statement of comprehensive income

SEK thousands	2022 Apr-Jun^{1}	2021 Apr-Jun^{2}	2022 Jan-Jun^{1}	2021 Jan-Jun^{2}	2021 Jan-Dec^{3}	2020 Jan-Dec
Net revenue	231,903	117,645	394,300	205,382	465,953	358,487
Capitalized work on own account	1,177	379	3,892	1,817	2,659	769
Other operating income	746	70	798	122	498	7,712
	233,826	118,094	398,990	207,320	469,110	366,968
Cost of materials	-91,973	-65,328	-169,783	-116,410	-252,047	-221,154
Other external expenses	-54,908	-10,487	-75,073	-18,756	-47,334	-27,060
Personnel costs	-53,346	-26,227	-98,933	-47,329	-112,468	-70,929
Depreciation and amortization	-5,805	-3,416	-10,580	-6,256	-13,716	-11,967
Other operating expenses	704	-285	329	-196	0	-1,600
	-205,328	-105,744	-354,039	-188,946	-425,564	-332,711
Operating profit/loss (EBIT)	28,498	12,350	44,951	18,374	43,546	34,257
Net financial items	-8,541	-11,572	-24,418	-14,148	-35,888	-16,400
Profit/loss before tax (EBT)	19,957	778	20,533	4,227	7,658	17,857
Tax	-907	-701	-1,413	-1,636	-4,853	-3,219
Profit/loss for the period	19,050	76	19,120	2,591	2,805	14,637
Profit/loss attributable to:
Shareholders of the parent company	19,050	76	19,120	2,592	2,805	14,638
Non-controlling interests	-	0	-	-1	-	-1
	19,050	76	19,120	2,591	2,805	14,637
Other comprehensive income
Foreign exchange differences on the translation of foreign operations for the period	29,960	-1,897	31,248	1,830	12,783	-7,729
Change in value of financial assets measured at fair value through other comprehensive income for the period	0	-144	0	-122	-122	122
Comprehensive income for the period	49,011	-1,965	50,368	4,299	15,466	7,030
Comprehensive income attributable to:
Shareholders of the parent company	49,011	-1,960	50,368	4,301	15,466	7,028
Non-controlling interests	-	-6	-	-2	-	2
	49,011	-1,965	50,368	4,299	15,466	7,030
Basic earnings per share, SEK^{5}	0.11	0.00	0.11	0.02	0.02	0.12
Diluted earnings per share, SEK^{5}	0.11	0.00	0.11	0.02	0.02	0.10

Note 1: Companies acquired in 2022 are consolidated in the ADDvise Group from: Poly Pharmaceuticals Inc February 12, 2022. JTECH Medical March 3, 2022. Surplus Diabetics Inc April 19, 2022. Seebreath AB May 16, 2022.
Note 2: Companies acquired in 2021 are consolidated in the ADDvise Group from: MRC Systems FZE March 28, 2021. MediSuite LLC August 4, 2021. Graham Medical Technologies LLC September 15, 2021. Southern Life Systems Inc November 24, 2021.
Note 3: Earnings per share were adjusted to take into account the outcome of warrants in series 2019/2021 in February 2021, the directed share issue in September 2021 and the directed share issue in March 2022.

Interim report Jan-Jun 2022

FINANCIAL STATEMENTS

ADDvise

Condensed consolidated statement of financial position

| SEK thousands | 2022
Jun 30 | 2021
Jun 30 | 2021
Dec 31 | 2020
Dec 31 |
| --- | --- | --- | --- | --- |
| ASSETS | | | | |
| Non-current assets | | | | |
| Goodwill | 572,274 | 173,511 | 288,559 | 156,319 |
| Trademarks | 316,182 | 33,427 | 127,767 | 22,594 |
| Other intangible non-current assets | 44,791 | 19,835 | 24,615 | 19,491 |
| Property, plant and equipment | 74,488 | 49,664 | 65,072 | 15,944 |
| Non-current financial assets | 339 | 198 | 232 | 134 |
| Contract assets | 14,644 | - | 14,119 | - |
| Deferred tax assets | 0 | 6,461 | 0 | 7,122 |
| Total non-current assets | 1,022,718 | 283,096 | 520,364 | 221,604 |
| Current assets | | | | |
| Inventories | 96,528 | 43,166 | 66,543 | 33,422 |
| Contract assets | 74,417 | 44,087 | 48,367 | 727 |
| Trade receivables | 119,444 | 52,082 | 96,808 | 44,930 |
| Other current receivables | 21,880 | 9,806 | 11,625 | 5,454 |
| Short-term investments¹ | 0 | 0 | 0 | 0 |
| Cash and cash equivalents | 104,997 | 115,495 | 325,735 | 39,606 |
| Total current assets | 417,266 | 264,636 | 549,078 | 124,140 |
| TOTAL ASSETS | 1,439,984 | 547,731 | 1,069,442 | 345,743 |
| EQUITY AND LIABILITIES | | | | |
| Equity | 393,059 | 118,774 | 247,275 | 91,049 |
| Equity attributable to: | | | | |
| Shareholders of the parent company | 393,059 | 118,705 | 247,275 | 90,966 |
| Non-controlling interests | - | 68 | - | 83 |
| | 393,059 | 118,774 | 247,275 | 91,049 |
| Non-current liabilities | | | | |
| Interest-bearing liabilities¹ | 527,512 | 269,017 | 525,145 | 142,442 |
| Deferred tax liabilities | 75,352 | 0 | 14,702 | 0 |
| Other non-current liabilities | 172,678 | 18,935 | 108,023 | 0 |
| Total non-current liabilities | 775,542 | 287,952 | 647,870 | 142,442 |
| Current liabilities | | | | |
| Interest-bearing liabilities | 28,215 | 47,029 | 29,044 | 50,930 |
| Current tax liabilities | 10,070 | 2,195 | 9,797 | 2,145 |
| Contract liabilities | 17,666 | 8,887 | 13,610 | 1,303 |
| Trade payables | 70,762 | 40,487 | 60,329 | 29,073 |
| Other current liabilities | 144,669 | 42,408 | 61,516 | 28,801 |
| Total current liabilities | 271,383 | 141,006 | 174,296 | 112,252 |
| TOTAL EQUITY AND LIABILITIES | 1,439,984 | 547,731 | 1,069,442 | 345,743 |

Note 1 As at December 31, 2020, the nominal value of the holding of own bonds was SEK 1,110 thousand and the fair value was SEK 1,088 thousand. The holding has been offset against the liability for the bond loan, which is recognized at a net amount that reflects ADDvise's expected cash flow upon settlement of the financial instrument, since the asset and liability were to be settled simultaneously. The financial instruments were settled in June 2021.

Interim report Jan-Jun 2022

FINANCIAL STATEMENTS

ADDvise

Condensed consolidated statement of changes in equity

SEK thousands	2022 Apr–Jun	2021 Apr–Jun	2022 Jan–Jun	2021 Jan–Jun	2021 Jan–Dec	2020 Jan–Dec
Opening equity	344,383	123,782	247,275	91,049	91,049	84,142
Profit/loss for the period	19,050	76	19,120	2,591	2,805	14,637
Other comprehensive income for the period	29,960	-2,042	31,248	1,708	12,661	-7,607
Comprehensive income for the period	49,011	-1,965	50,368	4,299	15,466	7,030
New share issue	-334	-249	95,416	26,219	143,449	-123
Dividends	0	-2,794	0	-2,794	-2,794	0
Change in non-controlling interests	0	0	0	0	104	0
Translation reserve	0	0	0	0	0	0
Closing equity	393,059	118,774	393,059	118,774	247,275	91,049

Attributable to:

Shareholders of the parent company	393,059	118,705	393,059	118,705	247,275	90,966
Non-controlling interests	-	68	-	68	-	83
Total equity	393,059	118,774	393,059	118,774	247,275	91,049

Condensed consolidated statement of cash flows

SEK thousands	2022 Apr–Jun	2021 Apr–Jun^{1}	2022 Jan–Jun	2021 Jan–Jun^{1}	2021 Jan–Dec^{1}	2020 Jan–Dec^{2}
Operating activities
Profit/loss before tax	19,957	778	20,533	4,227	7,658	17,857
Adjustments for non-cash items	-4,010	3,653	-1,444	5,275	9,469	3,778
Income tax paid	20	-539	-1,545	-539	-85	-2,259
Operating cash flow before changes in working capital	15,967	3,891	17,544	8,962	17,042	19,375
Operating cash flow	12,886	-6,883	-216	-8,213	10,186	57,438
Investing cash flow^{3}	-190,708	-32,396	-352,696	-34,267	-201,662	-7,214
Financing cash flow	8,112	95,596	129,534	117,610	473,975	-23,314
Cash flow for the period	-169,710	56,317	-223,378	75,131	282,499	26,910
Cash and cash equivalents at start of period	274,016	60,137	325,735	39,606	39,606	13,259
Foreign exchange differences in cash and cash equivalents	691	-959	2,641	758	3,629	-562
Cash and cash equivalents at end of period	104,997	115,495	104,997	115,495	325,735	39,606

Note 1 During the period April-June 2021, ADDvise paid liabilities of SEK 5.8 million relating to deferred payment of taxes and charges as a result of the Covid-19 situation. During the period January-June 2021, ADDvise paid liabilities of SEK 10.7 million relating to deferred payment of taxes and charges as a result of the Covid-19 situation. During the period January-December 2021, ADDvise paid liabilities of SEK 12.6 million relating to deferred payment of taxes and charges as a result of the Covid-19 situation. The effect of payment of this deferral is reported in the consolidated statement of cash flows under operating cash flow for April-June 2021, January-June 2021 and January-December 2021.
Note 2 During the period April-December 2020, deferred payment of taxes and charges of SEK 12.6 million was granted because of the Covid-19 situation. The liability for deferred payment at the end of 2020 was SEK 12.6 million. The effect of this deferral is reported in the consolidated statement of cash flows under operating cash flow for January-December 2020.
Note 3 For details on the reporting of the net outflow of cash and cash equivalents relating to acquisitions, see Note 5 Business combinations.

Interim report Jan-Jun 2022

FINANCIAL STATEMENTS

ADDvise

Consolidated income statement for five quarters

SEK thousands	2022 Apr–Jun	2022 Jan–Mar	2021 Oct–Dec	2021 Jul–Sep	2021 Apr–Jun
Net revenue	231,903	162,397	155,014	105,557	117,645
Capitalized work on own account	1,177	2,715	768	74	379
Other operating income	746	52	295	81	70
	233,826	165,163	156,078	105,712	118,094
Cost of materials	-91,973	-77,810	-84,448	-51,190	-65,328
Other external expenses	-54,908	-20,165	-17,115	-11,463	-10,487
Personnel costs	-53,346	-45,587	-35,349	-29,790	-26,227
Other operating expenses	704	-375	193	3	-285
	-199,523	-143,937	-136,718	-92,440	-102,327
EBITDA	34,304	21,227	19,360	13,272	15,766
EBITDA margin, %	14.8%	13.1%	12.5%	12.6%	13.4%
Depreciation and amortization	-5,805	-4,774	-3,740	-3,720	-3,416
Operating profit/loss (EBIT)	28,498	16,452	15,620	9,552	12,350
Operating margin, %	12.3%	10.1%	10.1%	9.0%	10.5%
Net financial items	-8,541	-15,876	-11,527	-10,213	-11,572
Profit/loss before tax (EBT)	19,957	576	4,092	-661	778
Tax	-907	-506	-2,314	-903	-701
Profit/loss for the period	19,050	70	1,778	-1,564	76
Profit/loss attributable to:
Shareholders of the parent company	19,050	70	1,778	-1,564	76
Non-controlling interests	-	-	-	-	0
	19,050	70	1,778	-1,564	76

Interim report Jan-Jun 2022

KEY PERFORMANCE INDICATORS

ADDvise

Key performance indicators

SEK thousands	2022 Apr–Jun^{1}	2021 Apr–Jun^{2}	2022 Jan–Jun^{1}	2021 Jan–Jun^{2}	2021 Jan–Dec^{3}	2020 Jan–Dec
Net revenue	231,903	117,645	394,300	205,382	465,953	358,487
Gross margin, %	60.3%	44.5%	56.9%	43.3%	45.9%	38.3%
EBITDA	34,304	15,766	55,531	24,630	57,261	46,224
EBITDA margin, %	14.8%	13.4%	14.1%	12.0%	12.3%	12.9%
Adjusted EBITDA	31,766	15,543	53,060	23,516	57,058	33,315
Adjusted EBITDA margin, %	13.7%	13.2%	13.5%	11.4%	12.2%	9.3%
EBITA	30,121	13,298	47,683	20,245	46,797	38,147
EBITA margin, %	13.0%	11.3%	12.1%	9.9%	10.0%	10.6%
Operating profit/loss (EBIT)	28,498	12,350	44,951	18,374	43,546	34,257
Operating margin, %	12.3%	10.5%	11.4%	8.9%	9.3%	9.6%
Profit/loss before tax (EBT)	19,957	778	20,533	4,227	7,658	17,857
Net margin, %	8.6%	0.7%	5.2%	2.1%	1.6%	5.0%
Profit/loss for the period	19,050	76	19,120	2,591	2,805	14,637
Adjusted profit/loss for the period	20,821	4,298	26,571	5,922	12,739	1,894
Equity ratio, %	27.3%	21.7%	27.3%	21.7%	23.1%	26.3%
Net debt	-450,730	-200,550	-450,730	-200,550	-228,455	-153,766
Net debt-to-EBITDA	5.1	4.0	5.1	4.0	4.0	3.3
Number of employees at end of period	348	235	348	235	285	108
Equity per share in SEK	2.18	0.85	2.18	0.85	1.50	0.94
Basic earnings per share in SEK^{1}	0.11	0.00	0.11	0.02	0.02	0.12
Diluted earnings per share in SEK^{1}	0.11	0.00	0.11	0.02	0.02	0.10
Number of shares at end of period	180,491,889	139,700,768	180,491,889	139,700,768	165,107,273	96,913,631
Average number of shares before dilution	180,491,889	139,700,768	174,372,042	130,481,440	143,133,781	96,913,631
Average number of shares after dilution	180,491,889	139,700,768	174,372,042	130,481,440	143,133,781	113,133,907

Interim report Jan-Jun 2022

DEFINITION OF KEY PERFORMANCE INDICATORS

ADDvise

Definition of key performance indicators

In its financial reports, ADDvise uses alternative performance measures, in other words financial measures that are not defined by IFRS. The company management uses these performance measures to assess the Group's financial development as a complement to the performance indicators that represent generally accepted accounting practice. Described below are financial measures not defined by IFRS. Unless otherwise stated in the respective key performance indicator definition, the Group's definition of the key performance indicator is unchanged from previous periods.

Adjusted EBITDA

Operating profit/loss before depreciation and amortization, acquisition costs and non-recurring items.

SEK thousands	2022 Apr-Jun	2021 Apr-Jun	2022 Jan-Jun	2021 Jan-Jun	2021 Jan-Dec	2020 Jan-Dec
Operating profit/loss, see below	28,498	12,350	44,951	18,374	43,546	34,257
Plus reversal of depreciation and amortization	5,805	3,416	10,580	6,256	13,716	11,967
Plus reversal of acquisition costs	1,007	644	1,192	644	2,837	196
Plus reversal of restructuring costs	0	0	0	0	0	0
Minus reversal of state subsidies and similar items relating to Covid-19	-3,545	-868	-3,663	-1,758	-3,040	-6,547
Minus reversal of revaluation of estimated additional purchase consideration for completed acquisitions	0	0	0	0	0	-6,558
= Adjusted EBITDA	31,766	15,543	53,060	23,516	57,058	33,315

Adjusted EBITDA margin

Operating profit/loss before depreciation and amortization, acquisition costs and non-recurring items as a percentage of net revenue.

SEK thousands	2022 Apr-Jun	2021 Apr-Jun	2022 Jan-Jun	2021 Jan-Jun	2021 Jan-Dec	2020 Jan-Dec
Operating profit/loss, see below	28,498	12,350	44,951	18,374	43,546	34,257
Plus reversal of depreciation and amortization	5,805	3,416	10,580	6,256	13,716	11,967
Plus reversal of acquisition costs	1,007	644	1,192	644	2,837	196
Plus reversal of restructuring costs	0	0	0	0	0	0
Minus reversal of state subsidies and similar items relating to Covid-19	-3,545	-868	-3,663	-1,758	-3,040	-6,547
Minus reversal of revaluation of estimated additional purchase consideration for completed acquisitions	0	0	0	0	0	-6,558
= Adjusted EBITDA	31,766	15,543	53,060	23,516	57,058	33,315
Divided by net revenue	231,903	117,645	394,300	205,382	465,953	358,487
= Adjusted EBITDA margin as a %	13.7%	13.2%	13.5%	11.4%	12.2%	9.3%

Adjusted profit/loss for the period

Profit/loss for the period before acquisition costs and non-recurring items.

SEK thousands	2022 Apr-Jun	2021 Apr-Jun	2022 Jan-Jun	2021 Jan-Jun	2021 Jan-Dec	2020 Jan-Dec
Profit/loss for the period	19,050	76	19,120	2,591	2,805	14,637
Plus reversal of acquisition costs	1,007	644	1,192	644	2,837	196
Plus reversal of restructuring costs	0	0	0	0	0	0
Plus reversal of financial expenses for liabilities relating to deferred payment of taxes and charges as a result of Covid-19	0	0	0	0	0	166
Plus reversal of financial expenses related to acquisitions and other non-recurring financial expenses	4,308	4,445	9,922	4,445	10,136	0
Minus reversal of state subsidies and similar items relating to Covid-19	-3,545	-868	-3,663	-1,758	-3,040	-6,547
Minus reversal of revaluation of estimated additional purchase consideration for completed acquisitions	0	0	0	0	0	-6,558
= Adjusted profit/loss for the period	20,821	4,298	26,571	5,922	12,739	1,894

Average number of shares after dilution

Weighted average of the number of shares outstanding during the period in the event that issued warrants are exercised. This performance indicator is as defined by IFRS, but is described here for information purposes.

Average number of shares before dilution

Weighted average of the number of shares outstanding during the period without taking into account issued warrants. This performance indicator is as defined by IFRS, but is described here for information purposes.

Basic earnings per share

Profit/loss for the period attributable to the parent company's shareholders as a proportion of the average number of shares before dilution, with earnings per share adjusted to take into account new share issues at a discount (the subscription price is lower than the current closing price). This performance indicator is as defined by IFRS, but is described here for information purposes.

SEK thousands	2022 Apr-Jun	2021 Apr-Jun	2022 Jan-Jun	2021 Jan-Jun	2021 Jan-Dec	2020 Jan-Dec
Profit/loss for the period attributable to the parent company's shareholders	19,050	76	19,120	2,592	2,805	14,638
Divided by average number of shares before dilution	180,491,889	139,700,768	174,372,042	130,481,440	143,133,781	96,913,631
= Basic earnings per share in SEK	0.11	0.00	0.11	0.02	0.02	0.12

Interim report Jan-Jun 2022

DEFINITION OF KEY PERFORMANCE INDICATORS

ADDvise

Cash flow from Operations

As of the interim report for January–March 2022, cash flow from Operations is presented, which is cash flow from the Group's business operations, and where items attributable to acquisition activities having an impact on cash flow have been eliminated. The Group is presenting this key performance indicator as it has been requested by investors. Comparative figures have not been calculated, as 2020 and 2021 have been affected by the covid-19 pandemic to a greater extent than 2022. A comparison would therefore reflect the effects of the pandemic and not only developments in business operations. The Group's definition has changed from the previous period by using the finance net attributable to Operations in the calculation.

SEK thousands	2022 Apr–Jun	2022 Jan–Jun
Operating profit/loss (EBIT)	28,498	44,951
Income taxes paid	-20	1,545
Changes in working capital	-10,222	-24,900
Finance net attributable to Operations	831	271
Depreciation and amortization attributable to Operations	5,368	10,143
Acquisition of intangible and tangible non-current assets and payments made in relation to amortization of loans attributable to leases, attributable to Operations	-5,162	-11,098
Items attributable to acquisition activities	1,007	1,192
= Cash flow from Operations	20,301	22,104

Diluted earnings per share

Profit/loss for the year attributable to the parent company's shareholders as a proportion of the average number of shares after dilution, with earnings per share adjusted to take into account new share issues at a discount (the subscription price is lower than the current closing price). This performance indicator is as defined by IFRS, but is described here for information purposes.

SEK thousands	2022 Apr–Jun	2021 Apr–Jun	2022 Jan–Jun	2021 Jan–Jun	2021 Jan–Dec	2020 Jan–Dec
Profit/loss for the period attributable to the parent company's shareholders	19,050	76	19,120	2,592	2,805	14,638
Divided by average number of shares after dilution	180,491,889	139,700,768	174,372,042	130,481,440	143,133,781	113,133,907
= Diluted earnings per share in SEK	0.11	0.00	0.11	0.02	0.02	0.10

EBITA

Operating profit/loss before amortization of intangible assets but after depreciation of property, plant and equipment. EBITA is a measure that the Group considers relevant for an investor wishing to understand profit generation before investments in intangible assets. The Group defines Earnings Before Interest, Tax and Amortization (EBITA) as operating profit/loss from continuing operations excluding amortization relating to intangible assets.

SEK thousands	2022 Apr–Jun	2021 Apr–Jun	2022 Jan–Jun	2021 Jan–Jun	2021 Jan–Dec	2020 Jan–Dec
Operating profit/loss, see below	28,498	12,350	44,951	18,374	43,546	34,257
Plus reversal of amortization of intangible assets	1,623	948	2,732	1,871	3,251	3,890
= EBITA	30,121	13,298	47,683	20,245	46,797	38,147

EBITA margin

Operating profit/loss before amortization of intangible assets but after depreciation of property, plant and equipment as a percentage of net revenue.

SEK thousands	2022 Apr–Jun	2021 Apr–Jun	2022 Jan–Jun	2021 Jan–Jun	2021 Jan–Dec	2020 Jan–Dec
Operating profit/loss, see below	28,498	12,350	44,951	18,374	43,546	34,257
Plus reversal of amortization of intangible assets	1,623	948	2,732	1,871	3,251	3,890
= EBITA	30,121	13,298	47,683	20,245	46,797	38,147
Divided by net revenue	231,903	117,645	394,300	205,382	465,953	358,487
= EBITA margin as a %	13.0%	11.3%	12.1%	9.9%	10.0%	10.6%

EBITDA

Operating profit/loss before depreciation and amortization. EBITDA is a measure that the Group considers relevant for an investor wishing to understand profit generation before investments in non-current assets. The Group defines Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) as operating profit/loss from continuing operations excluding depreciation and amortization relating to tangible and intangible assets.

SEK thousands	2022 Apr–Jun	2021 Apr–Jun	2022 Jan–Jun	2021 Jan–Jun	2021 Jan–Dec	2020 Jan–Dec
Operating profit/loss, see below	28,498	12,350	44,951	18,374	43,546	34,257
Plus reversal of depreciation and amortization	5,805	3,416	10,580	6,256	13,716	11,967
= EBITDA	34,304	15,766	55,531	24,630	57,261	46,224

EBITDA margin

Operating profit/loss before depreciation and amortization as a percentage of net revenue.

SEK thousands	2022 Apr–Jun	2021 Apr–Jun	2022 Jan–Jun	2021 Jan–Jun	2021 Jan–Dec	2020 Jan–Dec
Operating profit/loss, see below	28,498	12,350	44,951	18,374	43,546	34,257
Plus reversal of depreciation and amortization	5,805	3,416	10,580	6,256	13,716	11,967
= EBITDA	34,304	15,766	55,531	24,630	57,261	46,224
Divided by net revenue	231,903	117,645	394,300	205,382	465,953	358,487
= EBITDA margin as a %	14.8%	13.4%	14.1%	12.0%	12.3%	12.9%

Equity per share

Equity at the end of the period attributable to the parent company's shareholders divided by the number of shares at the end of the period.

SEK thousands	2022 Jun 30	2021 Jun 30	2021 Dec 31	2020 Dec 31
Equity attributable to the parent company's shareholders	393,059	118,705	247,275	90,966
Divided by number of shares at end of period	180,491,889	139,700,768	165,107,273	96,913,631
= Equity per share in SEK	2.18	0.85	1.50	0.94

Interim report Jan-Jun 2022

DEFINITION OF KEY PERFORMANCE INDICATORS

ADDvise

Equity ratio

Adjusted equity as a percentage of total assets.

SEK thousands	2022 Jun 30	2021 Jun 30	2021 Dec 31	2020 Dec 31
Equity	393,059	118,774	247,275	91,049
Divided by total assets	1,439,984	547,731	1,069,442	345,743
× Equity ratio as a %	27.3%	21.7%	23.1%	26.3%

Gross margin

Net revenue minus cost of materials as a percentage of net revenue. This performance indicator is presented in the interim report but not in the annual report. This is to facilitate comparison in quarterly follow-up.

SEK thousands	2022 Apr-Jun	2021 Apr-Jun	2022 Jan-Jun	2021 Jan-Jun	2021 Jan-Dec	2020 Jan-Dec
Net revenue	231,903	117,645	394,300	205,382	465,953	358,487
Minus cost of materials	-91,973	-65,328	-169,783	-116,410	-252,047	-221,154
	139,930	52,317	224,517	88,972	213,906	137,333
Divided by net revenue	231,903	117,645	394,300	205,382	465,953	358,487
× Gross margin as a %	60.3%	44.5%	56.9%	43.3%	45.9%	38.3%

Net debt

The Group defines net debt as the net sum of cash and cash equivalents, plus short-term investments and interest-bearing liabilities. The Group monitors this performance indicator since it shows the level of debt and is part of one of the long-term financial targets adopted by the Board of Directors.

SEK thousands	2022 Jun 30	2021 Jun 30	2021 Dec 31	2020 Dec 31
Cash and cash equivalents	104,997	115,495	325,735	39,606
Short-term investments	0	0	0	0
Loans due for repayment within one year	-28,215	-45,104	-29,044	-38,304
Other interest-bearing liabilities due for repayment within one year	0	0	0	0
Liabilities due for repayment within one year as a result of the deferral of payment of taxes and charges because of Covid-19	0	-1,924	0	-12,626
Loans due for repayment after one year or more	-527,512	-269,017	-525,145	-142,442
× Net debt	-450,730	-200,550	-228,455	-153,766

Net debt-to-EBITDA

The Group defines net debt-to-EBITDA as the net sum of cash and cash equivalents plus short-term investments and interest-bearing liabilities divided by EBITDA on a rolling 12-month basis. The Group monitors this performance indicator since it shows the level of debt and is one of the financial targets adopted by the Board of Directors. For the definition of EBITDA, see above.

SEK thousands	2022 Jun 30	2021 Jun 30	2021 Dec 31	2020 Dec 31
Cash and cash equivalents	104,997	115,495	325,735	39,606
Short-term investments	0	0	0	0
Loans due for repayment within one year	-28,215	-45,104	-29,044	-38,304
Other interest-bearing liabilities due for repayment within one year	0	0	0	0
Liabilities due for repayment within one year as a result of the deferral of payment of taxes and charges because of Covid-19	0	-1,924	0	-12,626
Loans due for repayment after one year or more	-527,512	-269,017	-525,145	-142,442
× Net debt	-450,730	-200,550	-228,455	-153,766
Divided by EBITDA, rolling 12 months	88,162	50,336	57,261	46,224
× Net debt-to-EBITDA	5.1	4.0	4.0	3.3

Net debt-to-EBITDA according to bond term sheet

The Group defines net debt according to the bond term sheet as the net sum of cash and cash equivalents, plus short-term investments and liabilities to be included in net debt according to the bond term sheet. The calculation of net debt-to-EBITDA according to the bond term sheet is different from the Group's net debt/EBITDA key performance indicator, which is one of the Group's financial targets. The Group follows the net debt-to-EBITDA according to the bond term sheet key performance indicator as it constitutes the terms of the Group's bond to do so. The key performance indicator is not calculated retroactively, so comparative figures are not presented for periods before the bond loan was issued, in May 2021.

SEK thousands	2022 Jun 30	2021 Jun 30	2021 Dec 31
Cash and cash equivalents	104,997	115,495	325,735
Excluding cash from bond loan deposited in escrow account	0	0	-168,274
Excluding purchase price paid in cash for acquisitions after the end of the reporting period net with acquired cash and cash equivalents	0	0	-65,917
Loans due for repayment within one year	-28,215	-45,104	-29,044
Loans due for repayment after one year or more	-527,512	-269,017	-525,145
Excluding bond loan related to cash from bond loan deposited in escrow account	0	0	168,274
Excluding loans for leases classified as non-financial leases according to Swedish tax law	42,862	23,363	37,011
Acquisition-related liabilities due for payment within one year	-12,230	0	0
Acquisition-related liabilities due for payment after one year or more	-66,119	-4,255	-21,253
Acquisition-related liabilities for acquisitions after the end of the reporting period due for payment after one year or more	0	0	-37,159
× Net debt according to bond term sheet	-486,218	-179,518	-315,772
EBITDA rolling 12-month period	88,162	50,336	57,261
Plus reversal of acquisition costs rolling 12-month period	3,385	804	2,837
Minus reversal of revaluation of estimated earn-outs for completed acquisitions rolling 12-month period	0	-4,838	0
Plus pro forma EBITDA from new acquisitions	63,475	8,550	22,929
Plus pro forma EBITDA from new acquisitions after the end of the reporting period	0	0	17,126
× EBITDA rolling 12-month period according to bond term sheet	155,022	54,852	100,154
× Net debt-to-EBITDA according to bond term sheet	3.1	3.3	3.2

Loans for leases classified as non-financial leases according to Swedish tax law are mainly referring to contracts for rented premises and similar lease contracts.

Net margin

Profit/loss after net financial items as a percentage of net revenue.

SEK thousands	2022 Apr-Jun	2021 Apr-Jun	2022 Jan-Jun	2021 Jan-Jun	2021 Jan-Dec	2020 Jan-Dec
Profit/loss for the period	19,050	76	19,120	2,591	2,805	14,637
Plus reversal of tax on profit/ loss for the year	907	701	1,413	1,636	4,853	3,219
× Profit/loss after net financial items	19,957	778	20,533	4,227	7,658	17,857
Divided by net revenue	231,903	117,645	394,300	205,382	465,953	358,487
× Net margin as a %	8.6%	0.7%	5.2%	2.1%	1.6%	5.0%

Number of employees

The number of employees working at the end of the period.

Interim report Jan-Jun 2022

DEFINITION OF KEY PERFORMANCE INDICATORS

ADDvise

Operating margin

Operating profit/loss as a percentage of net revenue.

SEK thousands	2022 Apr-Jun	2021 Apr-Jun	2022 Jan-Jun	2021 Jan-Jun	2021 Jan-Dec	2020 Jan-Dec
Profit/loss for the period	19,050	76	19,120	2,591	2,805	14,637
Plus reversal of tax on profit/loss for the period	907	701	1,413	1,636	4,853	3,219
Plus reversal of financial expenses	9,362	11,769	25,969	14,386	37,423	16,610
Minus reversal of financial income	-820	-197	-1,551	-238	-1,535	-210
= Operating profit/loss (EBIT)	28,498	12,350	44,951	18,374	43,546	34,257
Divided by net revenue	231,903	117,645	394,300	205,382	465,953	358,487
= Operating margin as a %	12.3%	10.5%	11.4%	8.9%	9.3%	9.6%

Operating profit/loss (EBIT)

Profit/loss before financial items and tax.

SEK thousands	2022 Apr-Jun	2021 Apr-Jun	2022 Jan-Jun	2021 Jan-Jun	2021 Jan-Dec	2020 Jan-Dec
Profit/loss for the period	19,050	76	19,120	2,591	2,805	14,637
Plus reversal of tax on profit/loss for the period	907	701	1,413	1,636	4,853	3,219
Plus reversal of financial expenses	9,362	11,769	25,969	14,386	37,423	16,610
Minus reversal of financial income	-820	-197	-1,551	-238	-1,535	-210
= Operating profit/loss (EBIT)	28,498	12,350	44,951	18,374	43,546	34,257

OPEX

The Group defines OPEX (operating expenses) as the sum of other external expenses, personnel costs and other operating expenses. The Group monitors this performance indicator since it shows the effectiveness of cost-saving initiatives and cost control.

SEK thousands	2022 Apr-Jun	2021 Apr-Jun	2022 Jan-Jun	2021 Jan-Jun	2021 Jan-Dec	2020 Jan-Dec
Other external expenses	-54,908	-10,487	-75,073	-18,756	-47,334	-27,060
Personnel costs	-53,346	-26,227	-98,933	-47,329	-112,468	-70,929
Other operating expenses	704	-285	329	-196	0	-1,600
= OPEX	-107,550	-36,999	-173,677	-66,281	-159,802	-99,589

Orders received

New customer orders received during the period, plus additions and deductions for changes to customer orders received earlier in the current financial year. Additions and deductions are made for changes to larger customer orders with delivery schedules spread across several financial years even if the customer order was received in a previous year.

Profit/loss before tax (EBT)

Profit/loss after net financial items.

SEK thousands	2022 Apr-Jun	2021 Apr-Jun	2022 Jan-Jun	2021 Jan-Jun	2021 Jan-Dec	2020 Jan-Dec
Profit/loss for the period	19,050	76	19,120	2,591	2,805	14,637
Plus reversal of tax on profit/loss for the period	907	701	1,413	1,636	4,853	3,219
= Profit/loss before tax (EBT)	19,957	778	20,533	4,227	7,658	17,857

Interim report Jan-Jun 2022

FINANCIAL STATEMENTS

ADDvise

Condensed parent company income statement

SEK thousands	2022 Apr–Jun	2021 Apr–Jun	2022 Jan–Jun	2021 Jan–Jun	2021 Jan–Dec	2020 Jan–Dec
Net revenue	4,789	4,990	12,120	10,198	24,814	19,448
Capitalized work on own account	0	0	0	0	0	0
Other operating income	0	0	0	0	0	0
	4,789	4,990	12,120	10,198	24,814	19,448
Cost of materials	0	0	0	0	0	0
Other external expenses	-3,484	-2,040	-6,932	-3,937	-8,479	-5,932
Personnel costs	-5,517	-3,560	-9,488	-7,232	-14,601	-11,850
Depreciation and amortization	-56	-45	-111	-82	-181	-306
Other operating expenses	0	0	0	0	-9	-1
	-9,058	-5,645	-16,531	-11,251	-23,271	-18,090
Operating profit/loss (EBIT)	-4,269	-655	-4,410	-1,053	1,543	1,358
Net financial items	-4,563	-8,758	-14,753	-11,395	-21,933	1,164
Profit/loss after financial items (EBT)	-8,832	-9,413	-19,163	-12,448	-20,390	2,522
Appropriations	0	0	0	0	21,550	11,330
Tax	0	0	7	0	-1,807	-1,829
Profit/loss for the period	-8,832	-9,413	-19,156	-12,448	-647	12,024
Parent company statement of comprehensive income
Profit/loss for the period	-8,832	-9,413	-19,156	-12,448	-647	12,024
Other comprehensive income for the period	0	0	0	0	0	0
Comprehensive income for the period	-8,832	-9,413	-19,156	-12,448	-647	12,024

Interim report Jan-Jun 2022

FINANCIAL STATEMENTS

ADDvise

Condensed parent company balance sheet

| SEK thousands | 2022
Jun 30 | 2021
Jun 30 | 2021
Dec 31 | 2020
Dec 31 |
| --- | --- | --- | --- | --- |
| ASSETS | | | | |
| Non-current assets | | | | |
| Intangible non-current assets | 302 | 282 | 323 | 181 |
| Property, plant and equipment | 320 | 197 | 281 | 154 |
| Non-current financial assets | 413,538 | 283,551 | 379,734 | 212,971 |
| Deferred tax assets | 10,522 | 12,329 | 10,522 | 12,329 |
| Total non-current assets | 424,682 | 296,359 | 390,860 | 225,636 |
| Current assets | | | | |
| Other current receivables | 432,674 | 47,410 | 141,549 | 40,767 |
| Short-term investments¹ | 0 | 0 | 0 | 0 |
| Cash and bank balances | 43,516 | 91,893 | 286,161 | 11,484 |
| Total current assets | 476,190 | 139,303 | 427,710 | 52,251 |
| TOTAL ASSETS | 900,872 | 435,663 | 818,570 | 277,887 |
| EQUITY AND LIABILITIES | | | | |
| Equity | 299,361 | 94,070 | 223,101 | 83,093 |
| Non-current liabilities | | | | |
| Interest-bearing liabilities¹ | 486,662 | 242,757 | 487,146 | 135,337 |
| Other non-current liabilities | 42,573 | 18,935 | 54,488 | 0 |
| Total non-current liabilities | 529,235 | 261,693 | 541,634 | 135,337 |
| Current liabilities | | | | |
| Interest-bearing liabilities | 0 | 0 | 0 | 11,500 |
| Current tax liabilities | 489 | 851 | 865 | 850 |
| Trade payables | 1,450 | 2,368 | 4,473 | 1,555 |
| Other current liabilities | 70,337 | 76,681 | 48,496 | 45,552 |
| Total current liabilities | 72,276 | 79,900 | 53,834 | 59,457 |
| TOTAL EQUITY AND LIABILITIES | 900,872 | 435,663 | 818,570 | 277,887 |

Interim report Jan-Jun 2022

NOTES

ADDvise

Notes

Note 1 Information about the company

ADDvise Group AB (publ), company registration number 556363-2115, with its registered office in Stockholm, Sweden.

In this report, ADDvise Group AB (publ) is referred to either using its full name or as the "parent company", while the ADDvise Group is referred to as "ADDvise" or the "Group." All amounts are expressed in thousands of Swedish kronor (SEK thousands) unless otherwise indicated.

Note 2 Accounting policies

The report was prepared in accordance with IAS 34 Interim financial reporting and the relevant sections of the Swedish Annual Accounts Act. The accounting policies and bases of calculation applied are the same as in the most recent annual report.

The parent company's report was prepared in accordance with Chapter 9 of the Swedish Annual Accounts Act. The accounting policies and bases of calculation applied are the same as in the most recent annual report.

Note 3 Related party transactions

There has been no related party transactions during the period.

Note 4 Segment reporting

ADDvise's segment information is presented from the company management's perspective, with operating segments identified based on internal reporting to the company's chief operating decision maker. The CEO is ADDvise's chief operating decision maker.

ADDvise's operating segments comprise two business units: Lab and Healthcare. This classification reflects the company's internal organization and reporting system. Internal pricing is on market terms. Intra-Group profits are eliminated.

Lab business unit

The Lab business unit creates modern research environments by providing laboratory furnishings, safety ventilation, climate rooms, clean rooms, and laboratory apparatus to the pharmaceutical and life science research industries.

ADDvise delivers turnkey solutions to all types of research facilities. Customers are found both within the public and private sectors. Other important customers are found in the education sector, from primary schools to universities.

Healthcare business unit

The Healthcare business unit manufactures and distributes medical equipment and consumables, both advanced and conventional. It is one of the market leaders in delivering medical technology products and consumables - everything from defibrillators to advanced chairs for urology and gynecology.

Customers are found within ambulance and emergency care, surgery, and general medical care. The business includes the manufacturing and sale of proprietary products, as well as the distribution of well-known brands within medical technology and consumables for healthcare.

SEK thousands	2022 Apr-Jun	2021 Apr-Jun	2022 Jan-Jun	2021 Jan-Jun	2021 Jan-Dec	2020 Jan-Dec
Lab business unit	61,994	66,057	127,431	103,972	217,162	151,043
Healthcare business unit	169,909	51,588	266,869	101,410	248,791	207,444
Total external net revenue	231,903	117,645	394,300	205,382	465,953	358,487
Lab business unit	62	293	435	580	1,255	1,292
Healthcare business unit	43	0	169	1	746	596
Total internal income	105	293	604	581	2,001	1,888
Lab business unit	6,103	8,166	12,294	12,769	26,275	17,278
Healthcare business unit	33,860	8,301	49,482	12,896	32,034	20,794
Total operating profit/loss before depreciation and amortization (EBITDA)	39,963	16,467	61,776	25,664	58,309	38,072
Acquisition costs in Other external expenses	-1,007	-644	-1,192	-644	-2,798	-196
Unallocated Group income	0	0	0	0	0	7,429
Unallocated Group expenses	-4,652	-57	-5,054	-391	1,751	919
Depreciation and amortization	-5,805	-3,416	-10,580	-6,256	-13,716	-11,967
Net financial items	-8,541	-11,572	-24,418	-14,148	-35,888	-16,400
Consolidated profit/loss before tax (EBT)	19,957	778	20,533	4,227	7,658	17,857

As of the interim report for January–March 2022 and going forward, acquisition costs and other items attributable to acquisitions are no longer allocated to the business units. This means that the segment's EBITDA is recognized excluding acquisition costs and other items attributable to acquisitions. In the table above, acquisition costs are reported on the line Acquisition costs in Other external expenses. Other items attributable to acquisitions, such as revaluations of liabilities for contingent earn-outs for completed acquisitions, are recognized on the lines Unallocated Group income and Unallocated Group expenses. Comparative figures have been restated for comparative periods in 2021 and for the full year 2020.

Unallocated Group expenses include, for example, costs for parent company functions. These costs are offset here against the management fees and service fees received by the parent company, which means that the net figure can be positive.

Interim report Jan-Jun 2022

NOTES

ADDvise

Note 5 Business combinations

During the reporting period January-June, 2022, four acquisitions were completed: JTECH Medical (JTECH), Poly Pharmaceuticals Inc (Poly Pharma), Seebreath AB (Seebreath) and Surplus Diabetics Inc (Surplus Diabetics).

On February 18, 2022, ADDvise completed the acquisition of Poly Pharmaceuticals Inc (Poly Pharma). ADDvise acquired 100 percent of the shares in Poly Pharma. The closing date was February 18, 2022. Poly Pharma is consolidated in the ADDvise Group from February 12, 2022. Poly Pharma is an American pharmaceutical company specializing in developing, manufacturing and marketing over-the-counter generic pharmaceuticals for the treatment of cough, cold, allergy and sinusitis, as well as for urological health and pain relief. Sales are mainly to pharmacies and general practitioners. The company markets and sells 20 proprietary pharmaceuticals in the U.S. market, including Folite, Deconex, Poly Tussin, Alahist and Poly Hist. Poly Pharma is based in Huntsville, Alabama.

On March 3, 2022, ADDvise completed the acquisition of JTECH Medical (JTECH). ADDvise acquired 100 percent of the shares in JTECH. The closing date was March 3, 2022. JTECH is consolidated in the ADDvise Group from March 3, 2022. JTECH is an American medtech company specializing in developing software and instruments to quantify patients' range of motion, pain, and strength in muscles during rehabilitation of muscle disorders. The company's products are primarily used by chiropractors, physicians and physiotherapists. The products are sold globally. JTECH is based in Salt Lake City, Utah. The company's revenue consists partly of license revenue from the software, partly of revenue from the sale of corresponding instruments.

On April 19, 2022, ADDvise completed the acquisition of Surplus Diabetics Inc (Surplus Diabetics). ADDvise acquired 100 percent of the shares in Surplus Diabetics. The closing date was April 19, 2022. The company is consolidated in the ADDvise Group from April 19, 2022. Surplus Diabetics is an American medtech company, specialized in supplying the U.S. market with diabetes products, such as glucose monitors, insulin and test stripes. Sales are made to pharmacies, wholesalers and directly to consumers. Surplus Diabetics is based in Deerfield Beach, Florida.

On May 16, 2022, ADDvise completed the acquisition of Seebreath AB (Seebreath). ADDvise acquired 100 percent of the shares in Seebreath. The closing date was May 16, 2022. The company is consolidated in the ADDvise Group from May 16, 2022. Seebreath is a Swedish medtech company developing and producing colorimetric CO2-indicating products used in respiratory care. The company's products are FDA approved and sold on the American market through distributors.

Purchase prices

SEK thousands	JTECH Medical	Poly Pharmaceuticals Inc	Surplus Diabetics Inc	Seebreath AB	Total
Cash	43,174	69,168	146,205	30,970	289,518
Holdback amount	2,427	33,164	2,394	1,500	39,485
Interest-free promissory note	5,824	0	4,789	0	10,612
Earn-outs	21,353	18,579	33,520	8,500	81,952
Total purchase price	72,777	120,912	186,908	40,970	421,567

Preliminary purchase price allocations

The fair value of the acquired assets has not yet been assessed with certainty. The purchase price allocations presented in this interim report are preliminary only. Finalized purchase price allocations will be determined in time for the 2022 annual report.

SEK thousands	JTECH Medical	Poly Pharmaceuticals Inc	Surplus Diabetics Inc	Seebreath AB	Total
Trademarks	20,440	44,431	125,742	0	190,613
Other intangible non-current assets	0	3	0	17,663	17,666
Property, plant and equipment	686	4,287	1,460	0	6,434
Non-current financial assets	44	6	0	85	135
Deferred tax assets	0	0	0	0	0
Inventories	4,125	4,524	1,961	0	10,610
Contract assets	3,667	0	0	0	3,667
Trade receivables	1,572	15,434	6,218	4,919	28,142
Short-term investments	0	0	0	0	0
Other current receivables	1,237	734	0	404	2,376
Cash and cash equivalents	2,198	1,217	791	180	4,387
Deferred tax liabilities	-7,572	-12,219	-37,345	-3,612	-60,747
Other non-current liabilities	0	0	-1,032	0	-1,032
Interest-bearing liabilities	0	-4,587	-1,460	0	-6,048
Current tax liabilities	0	0	0	0	0
Contract liabilities	0	0	0	0	0
Trade payables	-750	-1,404	0	-1,381	-3,535
Other current liabilities	-3,175	-7,835	-11,614	-9	-22,634
Acquired identifiable net assets	22,473	44,592	84,721	18,248	170,034
Goodwill	50,304	76,320	102,187	22,722	251,533
Acquired net assets	72,777	120,912	186,908	40,970	421,567

Revenue and profit from acquisitions

The newly acquired subsidiaries contributed revenues of SEK 92.5 million and a net profit of SEK 25.5 million to the ADDvise Group for the period from the first date of consolidation until June 30, 2022. If the acquisition dates had been at the beginning of the financial year, the newly acquired subsidiaries would have contributed revenues of SEK 167.5 million and a net profit of SEK 46.3 million to the Group for the period January 1–June 30, 2022.

Transaction costs

Transaction costs related to the acquisitions of SEK 11.1 million are recognized during the period January–June 2022 as costs in the consolidated statement of comprehensive income. SEK 1.2 million is reported in Other external expenses and SEK 9.9 million is reported in Net financial items.

continuation of Note 5; see next page

Interim report Jan-Jun 2022

NOTES

ADDvise

Net outflow of cash and cash equivalents – investing activities

Cash outflow for the acquisition of subsidiaries, after deduction of cash and cash equivalents acquired:

SEK thousands	2022	2021	2022	2021	2021	2020
	Apr-Jun	Apr-Jun	Jan-Jun	Jan-Jun	Jan-Dec	Jan-Dec
Cash purchase consideration	179,465	38,278	302,515	38,278	193,218	4,956
Holdback amounts and interest-free promissory notes	10,512	4,253	50,097	4,253	21,330	0
Cash and cash equivalents acquired	972	10,926	4,387	10,926	17,302	0
Net outflow of cash and cash equivalents	189,005	31,605	348,225	31,605	197,247	4,956

The cash purchase consideration for the period April-June 2022 comprises payments to the former owners of Seebreath AB and Surplus Diabetics Inc, and payments and adjustments of purchase considerations to the former owners of ADDvise's other subsidiaries acquired in 2021 and 2022.

The cash purchase consideration for the period January-June 2022 comprises payments to the former owners of JTECH Medical, Poly Pharmaceuticals Inc, Seebreath AB and Surplus Diabetics Inc, and payments and adjustments of purchase considerations to the former owners of ADDvise's subsidiaries acquired before 2022.

The cash purchase consideration for the period April-June 2021 and January-June 2021 comprises payments to the former owners of MRC Systems FZE.

The cash purchase consideration for the period January-December 2021 comprises payments to the former owners of MRC Systems FZE, MediSuite LLC, Graham Medical Technologies LLC and Southern Life Systems Inc.

The cash purchase consideration for the period January-December 2020 comprises payments of additional purchase considerations to the former owners of ADDvise's subsidiaries.

Note 6 Contract assets and contract liabilities

SEK thousands	2022 Jun 30	2021 Jun 30	2021 Dec 31	2020 Dec 31
Assets
Long-term lease receivables	14,644	-	14,119	-
Total non-current contract assets	14,644	-	14,119	-
Current lease receivables	21,609	-	15,076	-
Accrued income	52,808	44,087	33,291	727
Total current contract assets	74,417	44,087	48,367	727
Trade receivables	119,444	52,082	96,808	44,930
Total assets	208,506	96,169	159,294	45,657
Contract liabilities
Advances from customers	8,796	194	2,925	473
Deferred income	8,870	8,693	10,685	830
Total contract liabilities	17,666	8,887	13,610	1,303
Total liabilities	17,666	8,887	13,610	1,303

Note 7 Allocation of income

In accordance with IFRS 15 Revenue from Contracts with Customers, income is recognized and allocated to primary geographic markets, principal goods and services and the time of revenue recognition. Geographical allocation of income is also presented based on the domicile of the operations.

Primary geographic markets by segment based on customer domicile

SEK thousands	2022 Apr-Jun			2021 Apr-Jun
	Lab	Health-care	Total	Lab	Health-care	Total
Sweden	34,797	4,801	39,598	41,158	7,588	48,746
Europe, excluding Sweden	10,111	28,591	38,702	7,540	21,142	28,682
North America	3,674	135,039	138,714	0	20,939	20,939
Africa	-40	-2	-42	11,027	6	11,033
Asia	13,452	1,505	14,957	6,331	1,826	8,157
Other	0	-26	-26	0	87	87
Total	61,994	169,909	231,903	66,057	51,588	117,645
SEK thousands	2022 Jan-Jun			2021 Jan-Jun
---	---	---	---	---	---	---
	Lab	Health-care	Total	Lab	Health-care	Total
Sweden	71,561	13,104	84,664	79,048	19,411	98,460
Europe, excluding Sweden	12,303	51,553	63,856	7,565	39,905	47,470
North America	3,674	198,017	201,691	0	39,980	39,980
Africa	2,100	0	2,100	11,027	6	11,033
Asia	37,793	4,195	41,988	6,331	2,021	8,352
Other	0	0	0	0	87	87
Total	127,431	266,869	394,300	103,972	101,410	205,382
SEK thousands	2021 Jan-Dec			2020 Jan-Dec
---	---	---	---	---	---	---
	Lab	Health-care	Total	Lab	Health-care	Total
Sweden	149,867	34,779	184,646	149,855	49,035	198,890
Europe, excluding Sweden	28,426	104,832	133,258	1,188	82,517	83,704
North America	1,308	104,360	105,667	0	70,296	70,296
Africa	14,821	6	14,827	0	0	0
Asia	22,740	4,717	27,457	0	5,463	5,463
Other	0	97	97	0	134	134
Total	217,162	248,791	465,953	151,043	207,444	358,487

Geographic allocation by segment based on domicile of operations

SEK thousands	2022 Apr-Jun			2021 Apr-Jun
	Lab	Health-care	Total	Lab	Health-care	Total
Sweden	35,158	23,415	58,573	41,558	22,243	63,800
Europe, excluding Sweden	1,190	18,571	19,761	6,823	13,075	19,898
North America	0	127,923	127,923	0	16,270	16,270
Africa	0	0	0	0	0	0
Asia	25,646	0	25,646	17,676	0	17,676
Other	0	0	0	0	0	0
Total	61,994	169,909	231,903	66,057	51,588	117,645

continuation of Note 7; see next page

Interim report Jan-Jun 2022

NOTES

ADDvise

SEK thousands	2022 Jan-Jun			2021 Jan-Jun
	Lab	Health-care	Total	Lab	Health-care	Total
Sweden	72,095	48,216	120,311	79,472	42,305	121,778
Europe, excluding Sweden	2,941	31,905	34,846	6,823	29,540	36,363
North America	0	186,748	186,748	0	29,564	29,564
Africa	0	0	0	0	0	0
Asia	52,395	0	52,395	17,676	0	17,676
Other	0	0	0	0	0	0
Total	127,431	266,869	394,300	103,972	101,410	205,382
SEK thousands	2021 Jan-Dec			2020 Jan-Dec
---	---	---	---	---	---	---
	Lab	Health-care	Total	Lab	Health-care	Total
Sweden	151,252	85,003	236,255	151,043	82,105	233,148
Europe, excluding Sweden	22,320	76,871	99,191	0	66,144	66,144
North America	0	86,917	86,917	0	59,195	59,195
Africa	0	0	0	0	0	0
Asia	43,590	0	43,590	0	0	0
Other	0	0	0	0	0	0
Total	217,162	248,791	465,953	151,043	207,444	358,487

Principal goods/services April-June 2022

SEK thousands	Lab	Healthcare	Total
Sale of goods: furnishings, safety equipment and consumable materials for laboratories and healthcare	26,627	69,719	96,347
Sale of goods: treatment tables/chairs for healthcare	0	21,452	21,452
Sale of goods under construction contracts	33,113	0	33,113
Sale of pharmaceuticals	0	75,113	75,113
Services	2,254	3,625	5,879
Total	61,994	169,909	231,903

Principal goods/services April-June 2021

SEK thousands	Lab	Healthcare	Total
Sale of goods: furnishings, safety equipment and consumable materials for laboratories and healthcare	25,734	32,912	58,646
Sale of goods: treatment tables/chairs for healthcare	0	15,365	15,365
Sale of goods under construction contracts	37,591	0	37,591
Sale of pharmaceuticals	-	-	-
Services	2,732	3,311	6,044
Total	66,057	51,588	117,645

Principal goods/services January-June 2022

SEK thousands	Lab	Healthcare	Total
Sale of goods: furnishings, safety equipment and consumable materials for laboratories and healthcare	56,545	128,696	185,241
Sale of goods: treatment tables/chairs for healthcare	0	39,843	39,843
Sale of goods under construction contracts	66,652	0	66,652
Sale of pharmaceuticals	0	91,842	91,842
Services	4,234	6,487	10,721
Total	127,431	266,869	394,300

Principal goods/services January-June 2021

SEK thousands	Lab	Healthcare	Total
Sale of goods: furnishings, safety equipment and consumable materials for laboratories and healthcare	54,133	66,841	120,974
Sale of goods: treatment tables/chairs for healthcare	0	29,083	29,083
Sale of goods under construction contracts	44,014	0	44,014
Sale of pharmaceuticals	-	-	-
Services	5,824	5,486	11,310
Total	103,972	101,410	205,382

Principal goods/services January-December 2021

SEK thousands	Lab	Healthcare	Total
Sale of goods: furnishings, safety equipment and consumable materials for laboratories and healthcare	102,586	168,738	271,324
Sale of goods: treatment tables/chairs for healthcare	0	58,230	58,230
Sale of goods under construction contracts	103,508	0	103,508
Sale of pharmaceuticals	0	7,352	7,352
Services	11,067	14,471	25,538
Total	217,162	248,791	465,953

Principal goods/services January-December 2020

SEK thousands	Lab	Healthcare	Total
Sale of goods: furnishings, safety equipment and consumable materials for laboratories and healthcare	122,743	142,561	265,304
Sale of goods: treatment tables/chairs for healthcare	0	47,900	47,900
Sale of goods under construction contracts	17,037	4,612	21,648
Sale of pharmaceuticals	-	-	-
Services	11,263	12,372	23,635
Total	151,043	207,444	358,487

continuation of Note 7; see next page

Interim report Jan-Jun 2022

NOTES

ADDvise

Time of revenue recognition April-June 2022

SEK thousands	Lab	Healthcare	Total
Goods and services transferred to customers at a specific point in time	28,881	167,381	196,262
Goods and services transferred to customers over a period of time	33,113	2,528	35,641
Total	61,994	169,909	231,903

Time of revenue recognition April-June 2021

SEK thousands	Lab	Healthcare	Total
Goods and services transferred to customers at a specific point in time	28,466	47,451	75,917
Goods and services transferred to customers over a period of time	37,591	4,137	41,728
Total	66,057	51,588	117,645

Time of revenue recognition January-June 2022

SEK thousands	Lab	Healthcare	Total
Goods and services transferred to customers at a specific point in time	60,779	259,325	320,104
Goods and services transferred to customers over a period of time	66,652	7,544	74,196
Total	127,431	266,869	394,300

Time of revenue recognition January-June 2021

SEK thousands	Lab	Healthcare	Total
Goods and services transferred to customers at a specific point in time	59,958	92,769	152,726
Goods and services transferred to customers over a period of time	44,014	8,641	52,655
Total	103,972	101,410	205,382

Time of revenue recognition January-December 2021

SEK thousands	Lab	Healthcare	Total
Goods and services transferred to customers at a specific point in time	113,653	234,056	347,709
Goods and services transferred to customers over a period of time	103,508	14,735	118,244
Total	217,162	248,791	465,953

Time of revenue recognition January-December 2020

SEK thousands	Lab	Healthcare	Total
Goods and services transferred to customers at a specific point in time	134,006	181,093	315,099
Goods and services transferred to customers over a period of time	17,037	26,351	43,388
Total	151,043	207,444	358,487

Note 8 Fair value disclosures

The table below lists financial instruments measured at fair value, based on the classification in the fair value hierarchy. The different levels are defined as follows:

> Level 1 – Quoted prices (unadjusted) in active markets
> Level 2 – Inputs other than quoted market prices included within Level 1 that are observable for the asset or liability, either directly or indirectly
> Level 3 – Unobservable inputs for the asset or liability

June 30, 2022
SEK thousands	Level 1	Level 2	Level 3
Short-term investments	0
Contingent purchase consideration			232,254
Total	0	0	232,254
June 30, 2021
---	---	---	---
SEK thousands	Level 1	Level 2	Level 3
Short-term investments'	0
Contingent purchase consideration			25,531
Total	0	0	25,531

Note 1

As at June 30, 2021, the nominal value of the holding of own bonds was SEK 0 thousand. The bond loan 2017/2022 was redeemed in full in June 2021.

December 31, 2021
SEK thousands	Level 1	Level 2	Level 3
Short-term investments'	0
Contingent purchase consideration			96,768
Total	0	0	96,768

Note 1

As at December 31, 2021, the nominal value of the holding of own bonds was SEK 0 thousand. The bond loan 2017/2022 was redeemed in full in June 2021.

December 31, 2020
SEK thousands	Level 1	Level 2	Level 3
Short-term investments'	0
Contingent purchase consideration
Total	0	0	0

Note 1

As at December 31, 2020, the nominal value of the holding of own bonds was SEK 1,110 thousand and the fair value was SEK 1,088 thousand. The holding has been offset against the liability for the bond loan in the condensed consolidated statement of financial position and on the parent company's condensed balance sheet. The holding of own bonds and the bond loan are recognized at a net amount that reflects ADDvise's expected cash flow upon settlement of the financial instrument, since the asset and liability were to be settled simultaneously. The financial instruments were settled in June 2021.

Fair value description

Short-term investments

Short-term investments, which comprise shares and bonds, are traded on an active market, with the fair value calculated on the basis of the last buy price quoted on the balance sheet date.

Contingent purchase consideration

Contingent purchase consideration refers to the estimated contingent additional purchase consideration for completed acquisitions.

In those cases where the amount is specified in the share purchase agreement, an estimate is made of how likely it is that the condition will be met. If it is considered likely, the purchase consideration is valued at 100% of the agreed amount. If it is considered unlikely, the purchase consideration is valued at 0% of the agreed amount.

In those cases where the amount is not specified in the share purchase agreement, but is calculated on the basis of performance, an estimate is made firstly of the amount and secondly of how likely it is that the condition will be met.

The fair value of contingent purchase considerations can be affected to an extent by currency risk. At the end of the reporting period, the fair value of contingent purchase considerations can be affected by changes in the SEK versus USD currency exchange

continuation of Note 8; see next page

Interim report Jan-Jun 2022

NOTES

ADDvise

rate. A change in the currency exchange rate for USD of 5% would have an effect of SEK 11.2 million on the valuation of contingent purchase considerations and SEK 2.6 million on profit/loss before tax.

Note 9 Financial risks

ADDvise is exposed to a number of different financial risks through its activities, such as market risk, credit risk, currency risk and liquidity risk. The Group management and the Board of Directors take active steps to minimize these risks.

The Group's operations also involve a liquidity risk, since large orders tie up significant capital. To minimize the amount of capital tied up, the Group has payment terms with the Group's customers that require a portion of the order value to be paid in advance on the signing of the order. The Group also has factoring agreements in place.

Since the Group's strategy is to make complementary acquisitions, the Group's level of debt may change over time. The Board of Directors always makes an overall assessment of the risk that an acquisition loan represents to the Group.

Note 10 Number of shares

	2022 Apr-Jun	2021 Apr-Jun	2022 Jan-Jun	2021 Jan-Jun	2021 Jan-Dec	2020 Jan-Dec
Weighted average number of shares before dilution	180,491,889	139,700,768	174,372,042	130,481,440	143,133,781	96,913,631
Adjustment on the calculation of basic earnings per share:
Warrants	-	-	-	-	-	16,220,276
Weighted average number of shares after dilution	180,491,889	139,700,768	174,372,042	130,481,440	143,133,781	113,133,907

At the time of publication of this interim report, there were no warrants issued by the Group.

43,042,288 warrants in series 2019/2021 were issued outside the Group and listed for trading on Nasdaq First North. The subscription price for subscribing to class B shares on the basis of the warrant was SEK 0.65 per share. The exercise period ran from January 25, 2021, to February 8, 2021. Holders of warrants in series 2019/2021 exercised 42,787,137 warrants, corresponding to 99.41% of the number of outstanding warrants, for the subscription of 42,787,137 class B shares at the exercise price of SEK 0.65. The exercising of these warrants brought in SEK 27,811,639 for ADDvise before issue costs in February 2021.

Note 11 State subsidies and similar Covid-19-related items

During the Covid-19 pandemic, ADDvise has been applying for and receiving various kinds of state subsidies. Details are provided below of the state subsidies and similar Covid-19-related items that are recognized in the consolidated financial statements in this interim report.

State subsidies that are intended to compensate the company for costs relating to short-time working and similar personnel costs are recognized in profit and loss in the same period as the costs for which the subsidies are intended to compensate. The subsidies are recognized on the same rows as the costs in the consolidated statement of comprehensive income. During the Covid-19 pandemic, ADDvise has received subsidies for sick pay costs and subsidies for personnel costs in Sweden, as well as subsidies for personnel costs in the USA.

Reductions in charges are recognized in profit and loss in the periods to which the reduced charges relate. The reductions are recognized on the same rows as the charges. During 2020, ADDvise made use of the general reduction in employer's contribution offered by the Swedish Parliament as a result of Covid-19.

Some state subsidies relating to Covid-19 have been paid as advances and recognized in profit and loss when it is considered, with reasonable assurance, that the reporting of the utilization of the subsidy will be approved in accordance with the prevailing rules. The portion of the advance not yet utilized at the end of the reporting period, and therefore not yet recognized in profit and loss, is recognized in the consolidated statement of financial position on the row for Other current liabilities.

Items relating to state subsidies and similar Covid-19-related items that are recognized in profit and loss

SEK thousands	2022 Apr-Jun	2021 Apr-Jun	2022 Jan-Jun	2021 Jan-Jun	2021 Jan-Dec	2020 Jan-Dec
State subsidies relating to short-time working and similar subsidies for personnel costs	3,516	845	3,586	1,711	2,997	5,203
State subsidies relating to sick pay costs	29	23	77	47	43	106
Temporarily reduced employer's contributions	0	0	0	0	0	1,238
Total	3,545	868	3,663	1,758	3,040	6,547

Items relating to state subsidies and similar Covid-19-related items that are recognized in the consolidated statement of financial position

SEK thousands	2022 Jun 30	2021 Jun 30	2021 Dec 31	2020 Dec 31
Other current liabilities relating to the payment of subsidies not yet recognized in profit and loss	0	309	0	306
Total	0	309	0	306

Liabilities relating to the payment of subsidies in advance result in a contingent liability to repay portions of the subsidy in the event that the reporting is not approved. At the end of the reporting period, this contingent liability amounted to SEK 0 thousand (2,464).

Note 12 Russia's invasion of Ukraine

As a result of the Russian invasion of Ukraine, we have stopped all business with companies in Russia and Belarus. We condemn Russia's actions and our thoughts go out to all those affected.

ADDvise has no subsidiaries or employees in Russia, Ukraine or Belarus and the direct business exposure is very limited. The indirect exposure and the total effect on net sales during the second quarter are also marginal overall.

Interim report Jan-Jun 2022

OTHER INFORMATION

ADDvise

Other information

Publication dates for financial information

Interim report Jan-Sep 2022
October 28, 2022

Year-end report 2022
March 3, 2023

This information is information that ADDvise is obliged to publish under the Swedish Securities Market Act. The information was submitted for publication on July 22, 2022 at 08.45 CEST.

This report, as well as further information, is available on ADDvise's website, www.addvisegroup.com

For further information, please contact:

Rikard Akhtarzand, CEO
+46(0)8 128 766 08
[email protected]

Sebastian Robson, CFO
+46 (0)70-441 84 48
[email protected]

ADDvise Group AB (publ)
Grev Turegatan 30, SE-114 38 Stockholm
Sweden

Certified Adviser

Mangold Fondkommission AB, +46(0)8 503 015 50, is the company's Certified Adviser and liquidity guarantor.

Review of interim report

This interim report was not reviewed by the company's auditor.

Declaration

The undersigned declare that the interim report presents fairly the business, financial position and performance of the parent company and the Group and describes the significant risks and uncertainties faced by the parent company and the constituent companies of the Group.

Stockholm, July 22, 2022

Staffan Torstensson
Chairman of the Board

Johanne Louise
Brændgaard
Board Member

Fredrik Celsing
Board Member

Anna Ljung
Board Member

Erland Pontusson
Board Member

Interim report Jan-Jun 2022

AI assistant

ADDvise Group B — Interim / Quarterly Report 2022

8222_ir_2022-07-22_4408f20d-499e-40a1-84c2-bb841677aec8.pdf

Interim report January 1–June 30, 2022

April–June 2022

January–June 2022

The ADDvise Group in brief

CEO's comments

A strong quarter of continued growth

Healthcare business unit

Lab business unit

Acquisitions

Outlook

About ADDvise

Diversified customer base and product portfolio

Lab business unit

Healthcare business unit

Our acquisition strategy

Share and bond

Employees and operational organization

Legal structure

The Group's development

Group income and performance

April--June 2022

January--June 2022

Lab business unit net revenue and profit/loss

April-June 2022

January-June 2022

Healthcare business unit net revenue and profit/loss

April-June 2022

January-June 2022

Financial position

Cash and cash equivalents

Short-term investments

Net debt

Bond term sheet net debt

Cash flow April--June 2022

Cash flow January--June 2022

Equity

Equity ratio

Acquisitions 2022

Poly Pharmaceuticals Inc

JTECH Medical

Surplus Diabetics Inc

Seebreath AB

Intangible non-current assets April-June 2022

Intangible non-current assets January-June 2022

ADDvise acquires JTECH Medical, Poly Pharmaceuticals Inc, Seebreath AB and Surplus Diabetics Inc

Major customer contracts and orders during the reporting period

Major shareholder issues call options to board members, senior executives and certain other employees in ADDvise Group

Significant events after the reporting period

Major customer contracts and orders after the reporting period

Financial targets

Short-term financial targets

Long-term financial targets

Growth

Profitability

Capital structure

Dividend

Sustainability

Sustainability goals by 2030

Environment

Finance / Governance

Social

Notes

Note 1

Note 2

Note 3

Note 4

Note 5

Note 6

Note 7

Note 8

Note 9

Share price trend during the reporting period

Condensed consolidated statement of financial position

Condensed consolidated statement of changes in equity

Condensed consolidated statement of cash flows

Consolidated income statement for five quarters

Key performance indicators

ADDvise Group B Interim / Quarterly Report 2022