Ambea — Interim / Quarterly Report 2021

Feb 9, 2022

We make the world a better place, one person at a time.

Year-end report January-December 2021

Sales growth and continued favourable demand for elderly care

Fourth quarter October-December

• Net sales rose 8 per cent to SEK 2,988 million (2,764). Acquired growth was 4 per cent, exchange rates had a positive impact of 2 per cent on growth, and organic growth was 2 per cent.
• Operating profit (EBIT) totalled SEK 37 million (174).
• EBITA declined 66 per cent to SEK 69 million (200), representing a margin of 2.3 per cent (7.3).
• Adjusted EBITA, which excluded items affecting comparability of SEK -145 million, rose 7 per cent to SEK 214 million (200). The adjusted EBITA margin was 7.2 per cent (7.3).
• Loss for the period totalled SEK -37 million (profit: 93)
• Loss per share was SEK -0.39 (earnings: 0.98) before and after dilution.
• Cash conversion was 148.1 per cent (141.4).
• Free cash flow totalled SEK 410 million (466).

Full-year January-December

• Net sales rose 4 per cent to SEK 11,478 million (11,083). Acquired growth was 2 per cent and organic growth 2 per cent.
• Operating profit (EBIT) totalled SEK 598 million (717).

• EBITA declined 14 per cent to SEK 712 million (829), representing a margin of 6.2 per cent (7.5).

• Adjusted EBITA, which excluded items affecting comparability of SEK -145 million (-50), declined 3 per cent to SEK 857 million (879). The adjusted EBITA margin was 7.5 per cent (7.9).

• Profit for the period totalled SEK 237 million (359).
• Earnings per share were SEK 2.51 (3.80) before and after dilution.
• Cash conversion was 95.7 per cent (103.3).
• Free cash flow totalled SEK 1,139 million (1,270).
• The Board proposes a dividend of SEK 1.15 (1.15) per share for 2021

Significant events

• Ambea's subsidiary Stendi has been party to legal proceedings in Norway related to costs for temporary staff. The final judgement was pronounced during the quarter and Ambea subsequently reserved a further SEK 145 million during the quarter to cover similar expected claims. Of this amount, SEK 70 million has previously been announced. The amount has been recognised as an item affecting comparability. Read more on page 16.
• After the end of the quarter, the acquisition of Christinagården and Yxe Herrgård was completed. Read more on page 10.

2021	2020		2021	2020
					∆%
2,988	2,764	8	11,478	11,083	4
69	200	-66	712	829	-14
2.3	7.3		6.2	7.5
214	200	7	857	879	-3
7.2	7.3		7.5	7.9
37	174	-79	598	717	-17
1.2	6.3		5.2	6.5
-37	93	-140	237	359	-34
-0.39	0.98	-140	2.51	3.80	-34
-0.39	0.98	-140	2.51	3.80	-34
148.1	141.4		95.7	103.3
410	466	-12	1,139	1,270	-10
	Oct-Dec	Oct-Dec	∆%	Jan-Dec	Jan-Dec

Consolidated key figures

* Alternative performance measures. For reconciliation of financial statements to IFRS, see Note 8, for purpose and definition,

see ambea.com/investor-relations/reports-and-presentations/interim-reports

Sales growth and continued favourable demand for elderly care

During the year, Ambea achieved its best sales ever, despite these unique times for us and society. This result was made possible by the skills and commitment of our employees and the trust we have gained from our clients. In the fourth quarter, demand for elderly care also continued to grow, a trend that lasted for most of the year.

Care receivers' experience of Ambea is a key measure of how we have succeeded with our business. In the fourth quarter, all divisions conducted Care Receiver Surveys. The results were consistently high, with clear increases in overall satisfaction for Vardaga, Altiden and Stendi and a stable high score for Nytida. Stendi stood out in particular, with an increase in overall satisfaction from 83 per cent to 92 per cent.

Growing demand for elderly care

Toward the end of the year, the impact of the ongoing pandemic once again increased. Despite the high level of community transmission, I can safely say that the incidence of severe illness in our units is very rare. In elderly care, all care receivers have been offered a third vaccine dose in good time, which has effectively reduced the risk of severe outcomes. This is obviously gratifying, because it provides security for our care receivers, their loved ones and our employees. Demand for elderly care placements in Sweden also rose in the fourth quarter, a trend that lasted for most of the year. The coronavirus will probably continue to affect society for some time to come and in Ambea, we consider this one of several risks that we, as an organisation, must continue to manage and learn lessons from.

Increased net sales

In the fourth quarter, net sales rose 8 per cent to SEK 2,988 million (2,764). Adjusted EBITA was SEK 214 million (200).

Nytida, our disability care operations, opened a new LSS-residential facility in Skara. During the quarter, Nytida acquired Christinagården and Yxe Herrgård in Lindesberg and Nora. The units have 116 care placements and we are now welcoming more than 100 employees to Ambea. The units were acquired after the end of the quarter. The fourth quarter is a weaker quarter seasonally, while last year's comparative figures were affected by coronavirus-related grant income.

Both demand and occupancy increased in Vardaga, which had a positive impact on earnings during the quarter. In November, Villa Fridsbo opened in Löddeköpinge with 60 apartments. As we see continued long-term demand for nursing homes, we have several new residential facilities under construction and our portfolio of new residential facilities is constantly evolving.

"Demand for elderly care placements also rose in the fourth quarter, a trend that lasted for most of the year."

During the quarter, Stendi was informed that the Supreme Court of Norway will not hear the case related to costs for temporary staff. Ambea became party to this legal proceeding through the acquisition of Aleris Omsorg. The ruling thereby establishes a precedent for similar legal cases and Ambea subsequently reserved an additional SEK 145 million, which was charged to the fourth quarter. Of this amount, SEK 70 million has previously been announced. Otherwise, Stendi has continued its efforts to strengthen profitability by reviewing capacity, and we expect to see results in the first six months of the year.

In Denmark and Altiden, the strategic focus on social care and nursing homes has continued, while we are terminating home

care contracts. We are continuing to develop our business to create a strong platform for further growth through both acquisitions and organic development.

One of the top employers in Sweden

During the quarter, Ambea was named one of the top employers in Sweden in a survey conducted by Universum. Ambea was ranked 33 and was the only social care company among the fifty top ranked companies. This contrasts with commonly held views of the care industry. The result is particularly gratifying because our employees took part in the survey. The survey measures how satisfied employees are with their employer and career opportunities, and whether they would recommend their employer to a friend. In addition, we were also included on the Allbright Foundation's report of companies listed on the Stockholm exchange with gender-equal representation on boards and in management teams.

One of our strategic focus areas is to develop the best employees in the industry, and I see both of these placements as proof that our investments in leadership, regular employee surveys and skills development are yielding results.

Skills supply a key issue

Skills supply will be a major challenge for the entire welfare sector in the coming years. An ageing population increases the need for care which means, in turn, that many new social care workers will be needed.

According to the Swedish Association of Local Authorities and Regions (SKR), the recruitment need during the 2019–2029 period will be nearly half a million employees. According to the National Association of Local Authorities in Denmark, 70 per cent of municipalities lack qualified elderly care employees,

and approximately 50 per cent of municipalities are experiencing social care-related challenges. In a situation like this, a recognised and established brand with proud and committed employees is a major asset for attracting new employees.

At the same time, we are building a well-functioning structure in the Group with clear concepts, educational frameworks and our own training organisation Lära, which means we are wellequipped to develop the skills of our current employees and attract new employees. This also means that we can help our clients with competence-raising initiatives, which is a service that is continuously evolving.

We are working together to create enough safe and secure care for everyone

In 2022, our efforts to improve margins will continue, while also seeking complementary acquisitions and opening new residential facilities. Finally, I would like to address all of the care receivers, loved ones and clients who have been in contact with Ambea's units during the ongoing pandemic: We thank you for your trust and we will continue to move towards the realisation of our vision: We make the world a better place, one person at a time.

Mark Jensen

The Ambea Group is a market leader in social care in all three countries. We offer a wide range of services and treatment methods for children, young people and adults.

We are working together to create enough safe and secure care for everyone

Ambea is the leading care provider in Scandinavia. We work with the elderly, and people with disabilities or a need for psychosocial support. Our mission is to ensure quality of life for every person in Ambea's 900 units. Seeing and hearing them is the heart of our company.

But we also look up and see the world through the eyes of our clients – municipalities. Will they have enough resources in the years ahead? As the need for care grows sharply, financial pressures intensify and the shortage of care workers increases, smart solutions, partnerships and innovative solutions will be crucial. Ambea has a key role to play here.

We are a company that dares to test new ideas, strives for continuous improvement and continuously develops our units and our employees. We are big enough to make a difference and want to be a role model that works together with municipalities to create as much safe and secure care as possible from every valuable tax krona.

Always in the best interests of our care receivers. Always guided by our vision: We make the world a better place, one person at a time.

It's not a job for everyone. During the quarter, Stendi launched a campaign to increase the number of foster homes. A warm and honest campaign about the challenges, but also the rewards, for families that offer their home to a child in need. Traffic to the website increased by more than 100 per cent.

Sustainability and quality management in the fourth quarter

One of the top employers in Sweden

Ambea was ranked 33 on Universum's list of top employers in Sweden, and was the only care company among the top 50 companies.

The Top Employers in Sweden survey for employees in Swedish companies and organisations is carried out every year. The survey measures how satisfied employees are with their employers, based on criteria including loyalty and career opportunities, and whether they would recommend their employer to a friend. During the year, Ambea participated in the survey for the first time and for a few weeks over the summer, all employees were asked to respond to the survey.

High scores in all Care Receiver Surveys

Care receivers' experience of Ambea is a key measure of how we have succeeded with our business.

In the fourth quarter, Altiden, Stendi and Vardaga conducted their own Care Receiver Surveys, while Nytida took part in the SKR's national Care Receiver Survey.

The results were consistently high, with clear increases in overall satisfaction for Vardaga, Altiden and Stendi and a stable high score for Nytida.

Stendi stood out in particular, with an increase in overall satisfaction among care receivers from 83 per cent in 2020, to 92 per cent in 2021.

Reports and quality inspections during the quarter

SWEDEN

IVO inspections: The IVO performed twenty (20) inspections in the fourth quarter. The IVO performed six (6) inspections in Vardaga. Four (4) cases were closed without any remarks, one (1) case was closed with some remarks. One (1) case is still open pending a decision. The IVO performed fourteen (14) inspections in Nytida during the quarter. Decisions have been issued for six (6) of these cases and two (2) were closed with remarks. Decisions are still pending for the IVO's inspections of other units in Nytida.

Lex Sarah: Five (5) Lex Sarah cases were lodged, four (4) by Nytida and one (1) by Vardaga. Decisions have been issued for three (3) of the cases from Nytida, which were closed without any need for further action, and decisions are pending for the remaining two (2) cases.

Lex Maria: Three (3) Lex Maria cases were lodged by Vardaga. A decision is pending.

Individual complaints: Eight (8) individual complaints are under investigation by the IVO, four (4) from Vardaga and four (4) from Nytida, decisions are pending for all of these cases.

NORWAY

Regulatory inspections based on quality management: Two (2) inspections of Stendi's care services were carried out and both resulted in demands for measures, which were taken during the quarter. In the children's units, fifty-three (53) inspections were carried out in Q4, of which four resulted in demands for measures, and these were taken during the quarter.

DENMARK

Regulatory inspections based on quality management: Six (6) regulatory inspections were carried out in Altiden during the quarter, all with no remarks.

Ambea's key figures for social sustainability

	TARGET	OUT COME Q4 2021	COMMENTS
Care Receiver Survey Positive response rate to the question about overall satisfaction with our care and service.	>85.0%	89.5%	All divisions conducted customer surveys in Q4, representing an increase for all divisions. Stendi accounted for the largest increase, from 83 per cent in 2020 to 92 per cent in 2021.
Team Barometer Index (TBI) The Group's employee satisfaction survey in the form of regular pulse surveys conducted during the year. Scale of 0–100.	>75	72	The index score remained unchanged quarter-on-quarter. Based on the TBI score, all of Ambea's divisions identify objec tives and focus areas at central level, alongside of active and continuous improvements in each individual unit.
QHR Index Function of eight selected quality and HR met rics that indicate the status of the operations in a relevant way. Scale of 0–10.	>7.50	7.29	A slightly higher outcome for Q4 compared with Q3 (7.28). Efforts with units that have a low QHR Index score continue, with frequent monitoring of action plans and assistance from the relevant support functions.
Leadership Index (LI) The Group's employee satisfaction survey related to leadership. Scale of 0–100.	>80	74	The Leadership Index survey is conducted twice annually with an in-depth questionnaire, where employees evaluate their line manager based on Ambea's prioritised leadership qual ities. The Q4 outcome was slightly higher than the previous measurement (73) for Q2.
Improvement Index A unit's management of reported non-conformances and documented system atic quality management. Scale of 0–10.	>7.50	7.56	A lower improvement index score than in the preceding quar ter (7.84). Altiden had a negative impact on the result due to the inclusion of several start-up units in the calculation.
eNPS The Group's survey of employee loyalty. Scale of -100 – +100.	>+20	+18	The eNPS is a measure of the likelihood that our employees would recommend us as an employer. New survey in Q4 with unchanged result (18). The last survey was conducted in Q2.
Self-assessment A unit's control of conformance with about 200 requirements in the quality management system. Scale of 0–2.	>1.85	1.86	All divisions completed the Self-assessment in Q4, and the outcome was slightly higher quarter-on-quarter (1.85).

All divisions identified objectives and focus areas at both central and local levels, alongside of active and continuous improvements in each individual unit.

We prioritise five of the UN Sustainable Development Goals

Good Health and Well-being

Ambea offers high-quality social care for our care receivers and security for their loved ones.

Quality Education

We use Lära, our internal and external educational platform, to train the employees of today and tomorrow.

Affordable and Clean Energy

By ensuring that Ambea's Own Management operations always use renewable energy, we are helping to increase overall market demand for fossil-free energy.

READ MORE about our global goals in the Annual Report.

Decent work and economic growth

Ambea's operations begin with caring for our employees – when they are happy and healthy, they can do more for our care receivers.

Responsible Consumption and Production

Ambea creates modern residential facilities with lower CO₂ emissions. By keeping our stocks down, we only consume as much as we need.

Group

Fourth quarter

Net sales

Net sales rose 8 per cent to SEK 2,988 million (2,764). Acquired growth was 4 per cent, exchange rate effects had an impact of 2 per cent on growth and organic growth was 2 per cent year-on-year.

Net sales in Own Management amounted to SEK 2,277 million (2,062), up 10 per cent year-on-year, and attributable to acquisitions and newly opened units.

Net sales in Contract Management amounted to SEK 639 million (634). The year-onyear increase in sales was attributable to exchange rate fluctuations in Stendi and previously won contracts in Vardaga, but offset by terminated home care contracts in Altiden.

Net sales in Staffing rose 7 per cent to SEK 72 million (67). The increase was attributable to Klara, which conducts staffing operations in Sweden.

Earnings

EBIT declined 79 per cent to SEK 37 million (174), representing a margin of 1.2 per cent (6.3).

EBITA declined 66 per cent to SEK 69 million (200). The EBITA margin was 2.3 per cent (7.3). EBITA was adversely impacted by an increase to SEK 145 million in the provision linked to a legal proceeding in Norway related to costs for temporary staff.

Adjusted EBITA rose 7 per cent to SEK 214 million (200). The adjusted EBITA margin was 7.2 per cent (7.3).

Net financial items

Net financial expense was SEK -86 million (-67) for the quarter. Of this amount, SEK -68 million (-48) pertained to interest on a lease liability and SEK -18 million (-19) to interest and financial expenses/income.

Income tax

The tax effect for the period was SEK 12 million (-14), corresponding to an effective tax rate of 24 per cent (13).

Loss for the period

Loss for the period totalled SEK -37 million (profit: 93), corresponding to loss per share of SEK -0.39 (earnings: 0.98) before dilution and SEK -0.39 (earnings: 0.98) after dilution.

Net sales by segment October-December 2021

Group

January-December

Net sales

Net sales amounted to SEK 11,478 million (11,083). Acquired growth was 2 per cent and organic growth was 2 per cent year-on-year.

Net sales in Own Management amounted to SEK 8,702 million (8,235), up 6 per cent year-on-year, and attributable to acquisitions and start-up units.

Net sales in Contract Management amounted to SEK 2,512 million (2,602). Sales were negatively impacted by terminated elderly care contracts in Altiden, Vardaga and Stendi, as well as terminated home care contracts in Altiden.

Net sales in Staffing rose 8 per cent to SEK 265 million (246).

Earnings

EBIT declined 17 per cent to SEK 598 million (717), representing a margin of 5.2 per cent (6.5).

EBITA declined 14 per cent to SEK 712 million (829). The EBITA margin was 6.2 per cent (7.5). EBITA was negatively impacted by items affecting comparability of SEK -145 million (-50), attributable to the increased provision in connection with a legal proceeding in Norway related to temporary staff.

Adjusted EBITA declined 3 per cent to SEK 857 million (879). The decrease was mainly due to lower earnings in Nytida, where the preceding year was positively impacted by government grants. The adjusted EBITA margin was 7.5 per cent (7.9).

Net financial items

Net financial expense for the period was SEK -301 million (-260). Of this amount, SEK -236 million (-179) pertained to interest on a lease liability, SEK -67 million (-79) to interest and financial expenses/income, and SEK 2 million (-2) to exchange rate fluctuations.

Income tax

The tax effect for the period was SEK -60 million (-97), corresponding to an effective tax rate of 20 per cent (21).

Profit for the period

Profit for the period totalled SEK 237 million (359), corresponding to earnings per share of SEK 2.51 (3.80) before dilution and SEK 2.51 (3.80) after dilution.

Net sales by segment January-December 2021

Cash flow

SEK million	2021 Oct-Dec	2020 Oct-Dec	2021 Jan-Dec	2020 Jan-Dec
EBITDA	347	402	1,650	1,613
Adjustment for non-cash items	128	0	131	13
Change in working capital	55	183	-152	103
Cash flow from investments in fixed assets	-22	-28	-70	-122
Operating cash flow, including investments to increase capacity	508	556	1,559	1,607
Net interest paid	-84	-67	-296	-253
Tax paid	-14	-25	-125	-83
Free cash flow	410	466	1,139	1,270
Acquisition/disposal of shares and participations	–	–	-189	-105
Cash flow from financing activities	-399	-486	-882	-1,178
Other	–	–	–	1
Cash flow for the period	11	-20	68	-11
Operating cash flow, excluding effect of IFRS 16	217	349	544	832
Free cash flow, excluding effect of IFRS 16	186	307	359	622

Free cash flow for the quarter was SEK 410 million (466). The year-on-year decline in free cash flow was largely attributable to a decrease in working capital tied-up in 2020 due to temporary government grants.

Free cash flow for the period was SEK 1,139 million (1,270). The decline was largely attributable to a decrease in working capital tied-up in 2020 due to temporary government grants.

Financial position

	31 Dec	31 Dec	31 Dec	31 Dec
	2021	2021	2020	2020
SEK million		excl. IFRS 16		excl. IFRS 16
Net interest-bearing debt*	9,821	2,547	8,375	2,553
Rolling 12 months adjusted EBITDA*	1,794	773	1,663	836
Net debt/Rolling 12 months adjusted EBITDA	5.5	3.3	5.0	3.1

At 31 December 2021, net interest-bearing debt amounted to SEK 9,821 million (8,375). Excluding the effect of IFRS 16, indebtedness amounted to SEK 2,547 million, or 3.3 (3.1) times 12-months adjusted EBITDA.

* Alternative performance measures. For reconciliation of financial statements to IFRS, purpose and definition, seeambea.com/investor-relations/re-

Nytida provides support and care for children, young people and adults with lifelong disabilities and psychosocial problems. We offer residential care, day services, support for individuals and families, and schools in approximately 400 units across Sweden. Using proven models and in-depth knowledge, our 8,500 employees help to strengthen the ability of individuals to live an independent life.

The quarter

Net sales amounted to SEK 949 million (946).

Net sales in Own Management amounted to SEK 786 million (786).

Net sales in Contract Management amounted to SEK 163 million (160). The 2 per cent increase was due to the net effect between start-ups and the termination of previously won contracts.

Adjusted EBITA declined 19 per cent to SEK 128 million (159). Retroactive government grants due to the COVID-19 situation had a positive impact on the comparative period.

The adjusted EBITA margin was 13.5 per cent (16.8).

During the quarter, Christinagården and Yxe Herrgård were acquired. The acquisition comprises two psychiatric residential treatment facilities, including halfway and transitional living apartments, four residential LSS facilities and one day services unit. The units comprise 116 care placements and just over 100 employees in Lindesberg and Nora. Sales amounted to SEK 96 million for the 2020 financial year. The transfer date was 1 February 2022.

January-December period

Net sales rose 1 per cent to SEK 3,723 million (3,701).

Net sales in Own Management amounted to SEK 3,087 million (3,100). Lower occupancy in the Individual and family segment had a negative impact on sales.

Net sales in Contract Management amounted to SEK 636 million (601), up 6 per cent due to the start-up of previously won contracts.

Adjusted EBITA declined 12 per cent to SEK 529 million (604). Earnings were negatively impacted by lower occupancy in the Individual and family segment. Government grants due to the COVID-19 situation had a positive impact on the comparative year.

The adjusted EBITA margin was 14.2 per cent (16.3).

Adjusted EBITA margin RTM %

SEK million	2021 Oct-Dec	2020 Oct-Dec	∆%	2021 Jan-Dec	2020 Jan-Dec	∆%
Net sales	949	946	0	3,723	3,701	1
Adjusted EBITA*	128	159	-19	529	604	-12
Operating margin, adjusted EBITA (%)*	13.5	16.8		14.2	16.3

At Vardaga's just over 100 residential care facilities across Sweden, we offer elderly care where every day is as meaningful as the next. Every one of our nursing homes, shortterm residential facilities, home care and day services offers a high level of expertise and a safe environment. Our employees ensure quality of life and safety for every care receiver.

The quarter

Net sales rose 12 per cent year-on-year to SEK 970 million (867).

Net sales in Own Management amounted to SEK 638 million (548), up 16 per cent due to a higher rate of occupancy and newly opened units.

Net sales in Contract Management amounted to SEK 333 million (319). The 4 per cent increase was due to previously won management contracts. During the period, municipalities announced that contracts amounting to SEK 59 million in annual revenue would be retaken.

Adjusted EBITA rose 40 per cent to SEK 59 million (42). A higher rate of occupancy had a positive impact on earnings.

The adjusted EBITA margin was 6.1 per cent (4.8).

January-December period

Net sales rose 5 per cent year-on-year to SEK 3,664 million (3,497).

Net sales in Own Management amounted to SEK 2,377 million (2,184), up 9 per cent due to increased occupancy as well as newly opened units.

Net sales in Contract Management amounted to SEK 1,287 million (1,313). The 2 per cent decline was due to terminated contracts.

Adjusted EBITA rose 29 per cent to SEK 198 million (154). The year-on-year increase was due to the higher occupancy rate.

The adjusted EBITA margin was 5.4 per cent (4.4).

Adjusted EBITA margin RTM %

Mature units (opened before 2019)

SEK million	2021 Oct-Dec	2020 Oct-Dec	∆%	2021 Jan-Dec	2020 Jan-Dec	∆%
Net sales	970	867	12	3,664	3,497	5
Adjusted EBITA*	59	42	40	198	154	29
Operating margin, adjusted EBITA (%)*	6.1	4.8		5.4	4.4
Operating margin, adjusted EBITA mature units (%)*	9.3	10.7		9.7	9.1

Stendi is the largest care provider in Norway and runs nationwide operations in support and residential care for adults, children and young people. We also offer personal assistance, elderly care and home care. We have about 5,000 employees and more than 400 units across Norway.

The quarter

Net sales rose 2 per cent to SEK 737 million (726). Sales declined 5 per cent in local currency.

Net sales in Own Management amounted to SEK 678 million (672). Sales declined 5 per cent in local currency. The decrease in local currency was due to a terminated agreement and a lower rate of occupancy.

Net sales in Contract Management amounted to SEK 59 million (53), where the higher sales were attributable to exchange rate fluctuations.

Adjusted EBITA was SEK 28 million (15). Earnings were positively impacted by lower personnel costs. Personnel costs were positively impacted by retroactive final settlement for the pay revision in 2020 and 2021. Underlying earnings are in line with the preceding year.

The adjusted EBITA margin was 3.8 per cent (2.0).

January-December period

Net sales declined 1 per cent to SEK 2,939 million (2,975). Growth was -3 per cent in local currency.

Net sales in Own Management amounted to SEK 2,709 million (2,726), down 1 per cent. Growth was -3 per cent in local currency.

Net sales in Contract Management amounted to SEK 230 million (249). The decline in sales was attributable to terminated contracts in elderly care.

Adjusted EBITA was SEK 112 million (137). The decrease was attributable to lower occupancy, which led to lower staffing efficiency. The preceding year's earnings were

positively impacted by government grants due to the COVID-19 situation.

The adjusted EBITA margin was 3.8 per cent (4.6).

Adjusted EBITA margin RTM %

SEK million	2021 Oct-Dec	2020 Oct-Dec	∆%	2021 Jan-Dec	2020 Jan-Dec	∆%
Net sales	737	726	2	2,939	2,975	-1
Adjusted EBITA*	28	15	91	112	137	-18
Operating margin, adjusted EBITA (%)*	3.8	2.0		3.8	4.6

Altiden is the largest private care provider in Denmark, with operations comprising elderly care, home care, rehabilitation, disability care and social care. All over Denmark, we provide skilled care services based on respect. Approximately 1,000 employees ensure quality of life and a secure environment with a focus on development.

The quarter

Net sales rose 64 per cent to SEK 259 million (158). Sales rose 66 per cent in local currency.

• Net sales in Own Management amounted to SEK 175 million (56). The increase in sales was attributable to acquisitions and new residential facility start-ups.
• Net sales in Contract Management amounted to SEK 84 million (102), where the decrease was due to terminated contracts in elderly care and home care.

Adjusted EBITA was SEK 1 million (-16). Adjusted EBITA was positively impacted by completed acquisitions and an earn-out revaluation of SEK 7 million.

The adjusted EBITA margin was 0.4 per cent (-10.1).

January-December period

Net sales rose 33 per cent to SEK 882 million (663). Sales rose 37 per cent in local currency.

Net sales in Own Management amounted to SEK 526 million (225). The increase was largely attributable to the acquisition of EKKOfondens omsorgsverksamhet.

Net sales in Contract Management amounted to SEK 356 million (438). The decrease was attributable to terminated contracts in elderly care and home care.

Adjusted EBITA was SEK 13 million (-14). The positive change was attributable to the above acquisitions and earn-out revaluation.

The adjusted EBITA margin was 1.5 per cent (-2.1).

Adjusted EBITA margin RTM %

SEK million	2021 Oct-Dec	2020 Oct-Dec	∆%	2021 Jan-Dec	2020 Jan-Dec	∆%
Net sales	259	158	64	882	663	33
Adjusted EBITA*	1	-16		13	-14
Operating margin, adjusted EBITA (%)*	0.4	-10.1		1.5	-2.1

Klara is one of Sweden's leading providers of staffing services for social care. We are an authorised staffing company and are ISO certified. With personal service and long experience in the industry, Klara provides the best staffing solutions for both public and private clients. We offer ambulatory care teams and temporary doctors, nurses and other care workers, in Sweden.

The quarter

Net sales rose 12 per cent to SEK 100 million (89). The increase was attributable to a positive trend for Klara Team, which offers ambulatory care teams.

Adjusted EBITA was SEK 8 million (7), representing a margin of 8.0 per cent (7.9). The trend was positively impacted by higher volumes from temporary nursing staff.

January-December period

Net sales rose 12 per cent to SEK 368 million (329). The increase was largely attributable to newly started care teams in Klara Team and a positive trend for temporary nursing staff.

Adjusted EBITA was SEK 27 million (26), representing a margin of 7.3 per cent (7.9). Earnings were positively impacted by an increase in temporary staffing. The margin was impacted by newly started care teams in Klara Team. 4

Adjusted EBITA margin RTM %

SEK million	2021 Oct-Dec	2020 Oct-Dec	∆%	2021 Jan-Dec	2020 Jan-Dec	∆%
Net sales	100	89	12	368	329	12
Adjusted EBITA*	8	7	14	27	26	4
Operating margin, adjusted EBITA (%)*	8.0	7.9		7.3	7.9

Operational key figures

SEK million	2020 Q4	2021 Q1	2021 Q2	2021 Q3	2021 Q4
Ambea
Number of beds and placements in operation under own management on the closing date	9,160	9,170	9,464	9,489	9,523
Number of beds and placements opened under own management (RTM)	643	531	454	416	316
Number of beds and placements under own management under construction	1,931	1,916	1,706	1,736	1,516
Net won/lost management contracts, SEK million*	33	165	45	-91	-57
Nytida
Number of beds and placements in operation under own management	5,275	5,280	5,260	5,284	5,290
Number of beds and placements opened under own management (RTM)	124	123	71	101	59
Number of beds and placements under own management under construction	151	140	122	92	86
Net won/lost management contracts, SEK million*	33	2	61	0	2
Vardaga
Number of beds in operation under own management	2,885	2,884	2,998	3,004	3,064
Number of beds opened under own management (RTM)	511	395	298	238	180
Number of beds under own management under construction	1,628	1,629	1,509	1,569	1,355
Net won/lost management contracts, SEK million*	-	-	-16	0	-59
Stendi
Number of beds in operation under own management	842	843	807	802	765
Number of beds opened under own management (RTM)	-	-	-	-	-
Number of placements under own management under construction	-	-	-	-	-
Net won/lost management contracts, SEK million*	-	-	-	-91	-
Altiden
Number of beds and placements in operation under own management	158	163	399	399	404
Number of beds opened under own management (RTM)	8	13	85	77	77
Number of beds and placements under own management under construction	152	147	75	75	75
Net won/lost management contracts, SEK million**	-	163	-	-	-
Announced home care contracts to be retaken	-	-88	-	-	-39

* Includes management contracts to be retaken.

** Excluding announced home care contracts to be retaken.

Other events

Legal proceeding about costs for temporary staff in Norway

Since the first quarter of 2019, through the acquisition of the Aleris Omsorg operations, Ambea has been party to an ongoing legal proceeding in Norway regarding costs for temporary staff. Ambea's exposure associated with the proceeding is limited to NOK 30 million, which has been reserved as a provision in the combined companies' balance sheet. Ambea has been working actively to increase the proportion of permanent employees in the Norwegian operations.

The case was heard in the court of first instance in the third quarter of 2019. Both parties appealed the ruling. The court of second instance, Borgarting Lagmannsrett, handed down a decision in the second quarter of 2021. In contrast to the court of first instance, the opposing party was considered entitled to social security benefits for previously delivered services in all cases. Ambea appealed the decision to the Supreme Court. In the fourth quarter of 2021, the Supreme Court announced its decision that the Lagmannsrett's ruling would not be reviewed. This means that the judgement is final and also establishes a precedent for other similar legal cases related to Ambea's Norwegian operations. Ambea subsequently elected to reserve a further NOK 145 million to cover estimated additional claims and legal costs.

Legal dispute in Norway

In the fourth quarter of 2019, lawsuits were filed against Ambea citing the previously communicated irregularities in Norway, which are described in the Q1 report for 2019. The dispute concerns circumstances that existed prior to the acquisition of Aleris Omsorg's operations in Norway, and estimated costs associated with the case have already been reserved in the combined companies' balance sheet.

Tax audit in Sweden

In 2018, Ambea received a reassessment notice from the Swedish Tax Agency regarding VAT of SEK 12 million, including tax surcharges, for prior years in Ambea AB (publ). No provision was made for these costs during the period. The reassessment was mainly related to input VAT on costs arising from the IPO in 2017. The company appealed the Tax Agency's decision and received a judgement from the Administrative Court after the end of the quarter, which supports the Tax Agency's decision. Ambea appealed the ruling to a higher court in the third quarter of 2021.

Related-party transactions

During the quarter, no transactions took place between Ambea and its related parties that had any material impact on the company's position and earnings. The nature and volume of transactions remained unchanged during the period compared with the preceding year.

Events after the end of the quarter

As a result of the final ruling related to temporary staff in Ambea's Norwegian operations, more claimants came forward than previously expected after the end of the quarter. The previously announced provision of SEK 70 million for estimated additional claims has therefore been reassessed. The total provision for estimated additional claims is SEK 145 million. Provision for this amount was made in the fourth quarter.

Seasonal variations

Ambea's operating profit is affected by seasonal variations, weekends and public holidays.

Weekends and public holidays reduce Ambea's profitability due to higher personnel costs for inconvenient working hours. Most of the public holidays in countries where the company operates normally fall in the second quarter. In some years, Easter may fall in the first quarter and then affect its profitability. Christmas and New Year affect the first and fourth quarters.

The company's personnel costs are affected in a similar manner when employees take out their holidays. For example, the company is most profitable in the third quarter, as employees usually take their holidays during July and August and therefore receive holiday pay that is continuously accrued throughout the year. Costs during the summer months are also generally lower due to a reduced schedule for central activities, such as mandatory training programmes and central initiatives, during this period.

Employees

During the period, the average number of full-time employees (FTEs) was 14,292 (13,794), and the increase was mainly due to acquisitions and start-up units.

Risks and uncertainties

Ambea is exposed to a variety of risks and attaches great importance to continuously analysing, minimising and managing these risks. The risk assessment is also a key element of the annual strategy process, where risks in relation to the company's ability to achieve its financial targets and strategic ambitions are specifically evaluated. Ambea has identified the following risks: brand risks, industry and market risks, compliance and legal risks, operational risks and financial risks. For a description of these risks and how they are managed, refer to pages 49–50 of the 2020 Annual Report.

Key judgements and estimates

For information about the key judgements and estimates in this year-end report, refer to Note G32 in the company's 2020 Annual Report.

Other information

This report has not been audited.

The Board of Directors' assurance

The Board of Directors and Chief Executive Officer hereby provide their assurance that this year-end report provides a true and fair view of the operations, position and earnings of the Parent Company and the Group, and describes the material risks and uncertainties facing the Parent Company and the companies in the Group.

Stockholm, 8 February 2022

Lena Hofsberger Chair of the Board

Daniel Björklund Liselott Kilaas Board member Board member

Yrjö Närhinen Gunilla Rudebjer Samuel Skott Board member Board member Board member

Employee representative Employee representative Employee representative

Patricia Briceño Charalampos Kalpakas Magnus Sällström

Mark Jensen President and CEO

Presentation of the fourth quarter of 2021

Ambea will hold a presentation for the financial market, including the possibility to participate in a teleconference, at 10:00 a.m. CET on Wednesday, 9 February 2022. The presentation will be held in English, and be available as a webcast at ambea.se

Call-up information

To make sure that the hook-up to the conference call works, please call at least ten minutes before the conference call's start time to register, or use the code: 4285508.

Phone numbers

Sweden: +46 (0)8 506 921 80 UK: +44 (0)20 71 92 80 00 US: +1 63 15 10 74 95

Contact

Benno Eliasson, CFO & Investor Relations Telephone: +46 (0)73 343 45 00

Forthcoming report occasions

2021 Annual Report	30 March 2022
Q1 interim report for 2022	4 May 2022
Annual General Meeting	12 May 2022
Q2 interim report for 2022	18 August 2022
Q3 interim report for 2022	3 November 2022

Consolidated earnings in summary

SEK million	2021 Oct-Dec	2020 Oct-Dec	2021 Jan-Dec	2020 Jan-Dec
Operating income
Net sales	2,988	2,764	11,478	11,083
Other operating income	70	70	195	122
Total operating income	3,058	2,834	11,673	11,205
Operating expenses Consumables	-123	-99	-419	-358
Other external costs	-458	-320	-1,405	-1,260
Personnel costs	-2,131	-2,012	-8,199	-7,973
Depreciation, amortisation and impairment of fixed assets	-310	-228	-1,052	-896
Other operating expenses	1	-2	0	-1
Operating expenses	-3,021	-2,660	-11,075	-10,488
Operating profit	37	174	598	717
Financial income	0	0	1	1
Financial expenses	-86	-67	-302	-261
Net financial items	-86	-67	-301	-260
Profit/loss after net financial items	-49	107	297	457
Profit/loss before tax	-49	107	297	457
Tax on profit for the period	12	-14	-60	-97
Profit/loss for the period	-37	93	237	359
Profit/loss for the period attributable to shareholders of the Parent Company	-37	93	237	359
Earnings/loss per share before dilution, SEK	-0.39	0.98	2.51	3.80
Earnings/loss per share after dilution, SEK	-0.39	0.98	2.51	3.80

Consolidated statement of comprehensive income in summary

SEK million	2021 Oct-Dec	2020 Oct-Dec	2021 Jan-Dec	2020 Jan-Dec
Profit/loss for the period after tax	-37	93	237	359
Other comprehensive income, items not transferable to profit or loss
Remeasurements of defined-benefit pension plans	28	3	24	-6
Tax related to remeasurement of defined-benefit pension plans	-6	-1	-5	1
Total items not transferable to profit or loss	22	2	19	-5
Other comprehensive income, items transferable to profit or loss Translation differences	14	-4	63	-95
Hedging of net investments in foreign operations	-11	-1	-32	46
Cash flow hedges	7	4	7	-9
Cash flow hedge reserve	–	–	1	1
Incentive programmes	–	–	2	–
Remeasurement of tenant-owned apartments	8	–	8	–
Tax	1	–	6	-8
Total items transferable to profit or loss	19	-2	55	-65
Total other comprehensive income	41	-0	74	-69
Total comprehensive income for the period	4	93	311	290
Comprehensive income for the period attributable to shareholders of the Parent Company	4	93	311	290

Earnings per share

	2021 Oct-Dec	2020 Oct-Dec	2021 Jan-Dec	2020 Jan-Dec
Profit/loss for the period attributable to shareholders of the Parent Company, SEK million	-37	93	237	359
Earnings per share before dilution Average number of shares, thousands	94,533	94,484	94,515	94,466
Earnings/loss per share before dilution, SEK	-0.39	0.98	2.51	3.80
Earnings per share after dilution Average number of shares, thousands	94,571	94,548	94,552	94,531
Earnings/loss per share after dilution, SEK	-0.39	0.98	2.51	3.80

Consolidated balance sheet in summary

SEK million	2021 31 Dec	2020 31 Dec
Assets
Fixed assets
Goodwill	6,817	6,508
Customer contracts and customer relationships	441	496
Other intangible assets	27	27
Right-of-use assets	7,057	5,675
Tangible assets	319	270
Derivative instruments	3	2
Deferred tax assets	116	72
Non-current receivables	117	99
Total fixed assets	14,897	13,148
Current assets
Accounts receivable	1,180	1,078
Other receivables	117	93
Prepaid expenses and accrued income	334	291
Cash and cash equivalents	86	25
Total current assets excluding assets held for sale	1,717	1,487
Assets held for sale	60	83
Total current assets	1,777	1,570
Total assets	16,674	14,718

Consolidated balance sheet in summary – continued

SEK million	2021 31 Dec	2020 31 Dec
Equity and liabilities Equity
Share capital	2	2
Other capital contributions	6,170	6,167
Reserves	-37	-82
Retained earnings, including profit for the year	-1,605	-1,762
Total equity attributable to shareholders of the Parent Company	4,530	4,326
Non-controlling interests	–	–
Total equity	4,530	4,326
Non-current liabilities
Non-current interest-bearing liabilities	993	766
Lease liabilities	6,496	5,167
Derivative instruments	–	7
Pension provisions	16	38
Other provisions	192	38
Deferred tax liabilities	196	186
Total non-current liabilities	7,893	6,203
Current liabilities
Commercial papers	1,639	1,813
Lease liabilities	779	655
Accounts payable	341	311
Tax liabilities	61	80
Other non-interest-bearing liabilities	238	182
Accrued expenses and deferred income	1,193	1,149
Total current liabilities	4,251	4,190
Total equity and liabilities	16,674	14,718

Consolidated statement of changes in equity in summary

	2021	2020
SEK million	Jan-Dec	Jan-Dec
Opening balance	4,326	4,036
Comprehensive income	311	290
Warrants issued	3	–
Dividends	-109	–
Closing balance	4,530	4,326

Consolidated cash flow statement in summary

SEK million	2021 Oct-Dec	2020 Oct-Dec	2021 Jan-Dec	2020 Jan-Dec
Operating activities
Profit before financial items	37	174	597	717
Depreciation, amortisation and impairment losses	310	228	1,052	896
Capital gains/losses	-1	1	-10	–
Changes in provisions	129	1	141	14
Total non-cash items	438	230	1,183	909
Net interest paid	-84	-66	-296	-253
Tax paid	-14	-25	-125	-83
Cash flow from operating activities before changes in working capital	377	312	1,359	1,289
Cash flow from changes in working capital
Decrease/increase in receivables	-131	-2	-132	-70
Decrease/increase in current liabilities	187	185	-19	173
Cash flow from operating activities	433	494	1,208	1,392
Investing activities
Acquisition of tangible assets	-20	-26	-90	-112
Acquisition of intangible assets	-3	-2	-10	-12
Sale of fixed assets	–	0	31	3
Free cash flow	410	466	1,139	1,270
Acquisition of subsidiaries	–	–	-189	-105
Acquisition of financial assets	1	0	–	0
Cash flow from investing activities Cash flow after investments	-22 411	-28 466	-258 950	-226 1,166
Financing activities Loans raised	1,150	1,889	5,549	6,037
Repayment of debt	-1,240	-1,712	-5,723	-6,189
Repayment of lease liability	-223	-154	-779	-623
Net change in checking account	-87	-509	182	-403
Cost of loans raised	–	–	-5	–
Premiums for warrants	–	–	3	–
Dividends paid	–	–	-109	–
Cash flow from financing activities	-399	-486	-882	-1,178
Cash flow for the period	11	-20	68	-13
Cash and cash equivalents on the opening date	77	52	25	52
Exchange rate differences in cash and cash equivalents	-2	-7	-8	-14
Cash and cash equivalents on the closing date	86	25	86	25

Parent Company income statement in summary

SEK million	2021 Oct-Dec	2020 Oct-Dec	2021 Jan-Dec	2020 Jan-Dec
Income Net sales	2	2	8	8
Total income	2	2	8	8
Operating expenses
Other external costs Personnel costs	-3 -3	-2 -4	-12 -13	-9 -14
Amortisation of intangible assets	0	0	0	0
Operating expenses	-6	-5	-25	-23
Operating profit/loss	-4	-4	-17	-15
Financial items	-4	-6	-19	-29
Loss after financial items	-8	-10	-36	-44
Appropriations	68	96	68	96
Profit before tax	60	86	32	51
Tax on profit for the period	-7	-11	-7	-11
Profit for the period	53	74	25	40

Parent Company balance sheet in summary

SEK million	2021 31 Dec	2020 31 Dec
Assets
Intangible assets Software	0	1
Financial assets Participations in Group companies	7,212	7,210
Derivative instruments	2	4
Total fixed assets	7,215	7,215
Current assets Receivables from Group companies	3,370	3,156
Other receivables	14	16
Prepaid expenses and accrued income Total current assets	7 3,392	8 3,180
Total assets	10,607	10,394
Equity and liabilities Share capital	2	2
Statutory reserve	0	0
Total restricted equity	2	3
Share premium reserve	1,407	1,404
Retained earnings	1,800	1,869
Profit for the period	25	40
Total non-restricted equity	3,232	3,313
Total equity	3,234	3,316
Untaxed reserves	61	50
Non-current liabilities
Liabilities to credit institutions	1,003	814
Total non-current liabilities	1,003	814
Current liabilities
Commercial papers	1,639	1,813
Accounts payable	4	4
Tax liabilities	19	32
Liabilities to Group companies	4,634	4,352
Other liabilities	0	0
Accrued expenses and deferred income	13	12
Total current liabilities	6,309	6,214
Total equity and liabilities	10,607	10,394

Notes

NOTE 1 Accounting policies

This interim report has been prepared in accordance with IAS 34 Interim Financial Reporting and the Swedish Annual Accounts Act, as well as the Swedish Financial Reporting Board's RFR 1, Supplementary Accounting Rules for Groups, and RFR 2 Accounting for Legal Entities. The accounting policies applied are consistent with those applied in the preparation of the most recent annual report, with exception for the reclassification of Klara's income, which is described below.

Reclassification of Klara's income

In 2021, the Klara segment's income was reclassified. Income attributable to intra-Group sales previously classified as other income is now classified as net sales, since it is considered income earned from the segment's core business activities. To facilitate comparability with earlier periods, these figures have been adjusted, where appropriate, using the same methodology. Intra-Group sales are eliminated on the consolidated income statement.

New or revised IFRSs as of 2021

None of the new or revised standards or interpretations that were applicable from 1 January 2021 had any material impact on the financial statements of the Group or the Parent Company. No new or revised standards have been adopted in advance.

Alternative performance measures

In 2019, alternative performance measures were presented that were adjusted for the effects of the implementation of IFRS 16 to enable a comparison with 2018. As comparability exists between 2021 and 2020, no such adjusted measures are now presented, except for Net debt/Rolling 12 months adjusted EBITDA, which pertains to covenants for the revolving credit facility and the Group's EBITA and EBITDA results.

Change in the calculation of the average number of employees (FTE)

As of the interim report for the first quarter of 2021, an improved methodology has been used to calculate the average number of employees. To facilitate comparability with earlier periods, these figures have been restated, where applicable, using the same methodology.

NOTE 2 Segment information

Ambea's operations consist of the following segments:

• Nytida Comprises residential facilities, day services, support for individuals and families, and schools for children, young people and adults with disabilities or psychosocial problems in Sweden.
• Vardaga Comprises nursing homes, short-term residential facilities, home care and day services for the elderly in Sweden.
• Stendi Comprises support for children, young people and adults by offering personal assistance, residential care, elderly care and home care in Norway.
• Altiden Comprises operations in elderly care, home care, social care and disability care in Denmark.
• Klara Comprises subscription services for ambulatory care teams and supply of temporary doctors and nurses in Sweden.

Quarterly overview

SEK million	2019 Q4	2020 Q1	2020 Q2	2020 Q3	2020 Q4	2021 Q1	2021 Q2	2021 Q3	2021 Q4
Net sales
Nytida	919	912	928	915	946	919	932	924	949
Vardaga	915	909	862	860	867	859	895	940	970
Stendi	770	761	756	733	726	731	748	723	737
Altiden	131	169	170	166	158	151	211	261	259
Klara	85	76	80	82	89	89	90	89	100
Group adjustments	-16	-16	-20	-23	-22	-23	-23	-25	-28
Ambea	2,804	2,811	2,776	2,732	2,764	2,727	2,851	2,912	2,988
Adjusted EBITA
Nytida	120	129	138	177	159	114	113	174	128
Vardaga	39	48	15	50	42	25	25	89	59
Stendi	-2	13	31	79	15	15	4	64	28
Altiden	0	-3	-7	11	-16	1	-4	15	1
Klara	7	6	5	8	7	6	6	8	8
Unallocated items	-10	-6	-8	-7	-7	-10	2	-6	-9
Ambea	154	187	174	319	200	152	146	344	214

October-December 2021

						Unallocated	Group
SEK million	Nytida	Vardaga	Stendi	Altiden	Klara	items*	adjustments	Group
Operating income
Net sales	949	970	737	259	100	–	-28	2,988
Other operating income	7	42	2	11	–	7	–	70
Total income	957	1,012	739	270	100	7	-28	3,058
EBITA	128	59	-117	1	8	-9	–	69
EBITA margin, %	13.5	6.1	-15.9	0.4	8.0	–	–	2.3
Items affecting comparability	–	–	145	–	–	–	–	145
Adjusted EBITA	128	59	28	1	8	-9	–	214
Adjusted EBITA margin, %	13.5	6.1	3.8	0.4	8.0	–	–	7.2
Amortisation of intangible assets								-32
Operating profit (EBIT)								37
Net financial items								-86
Loss after net financial items								-49
Loss before tax								-49
Tax on profit for the period								12
Loss for the period								-37
Assets	6,050	7,096	2,000	1,138	179	212	0	16,674

October-December 2020

						Unallocated	Group
SEK million	Nytida	Vardaga	Stendi	Altiden	Klara	items*	adjustments	Group
Operating income Net sales	946	867	726	158	89	–	-22	2,764
Other operating income	20	38	4	1	–	7	–	70
Total income	966	904	730	159	89	7	-22	2,834
EBITA	159	42	15	-16	7	-7	–	200
EBITA margin, %	16.8	4.8	2.1	-10.1	7.9	–	–	7.3
Items affecting comparability	–	–	–	–	–	–	–	–
Adjusted EBITA	159	42	15	-16	7	-7	–	200
Adjusted EBITA margin, %	16.8	4.8	2.0	-10.1	7.9	–	–	7.3
Amortisation of intangible assets								-27
Operating profit (EBIT)								174
Net financial items								-67
Profit after net financial items								107
Profit before tax								107
Tax on profit for the period								-14
Profit for the period								93
Assets	5,729	6,405	1,836	452	178	118	–	14,718

* The 'Unallocated items' column consists of centrally approved costs for general central administration, restructures and acquisitions.

January-December 2021

						Unallocated	Group
SEK million	Nytida	Vardaga	Stendi	Altiden	Klara	items*	adjustments	Group
Operating income
Net sales	3,723	3,664	2,939	882	368	–	-99	11,478
Other operating income	26	110	7	21	–	30	–	195
Total income	3,750	3,774	2,946	903	368	30	-99	11,673
EBITA	529	198	-33	13	27	-23	–	712
EBITA margin, %	14.2	5.4	-1.1	1.5	7.4	–	–	6.2
Items affecting comparability	–	–	145	–	–	–	–	145
Adjusted EBITA	529	198	112	13	27	-23	–	857
Adjusted EBITA margin, %	14.2	5.4	3.8	1.5	7.4	–	–	7.5
Amortisation of intangible assets								-114
Operating profit (EBIT)								598
Net financial items								-301
Profit after net financial items								297
Profit before tax								297
Tax on profit for the period								-60
Profit for the period								237
Assets	6,050	7,096	2,000	1,138	179	212	0	16,674

January-December 2020

						Unallocated	Group
SEK million	Nytida	Vardaga	Stendi	Altiden	Klara	items*	adjustments	Group
Operating income
Net sales	3,701	3,497	2,975	663	329	–	-83	11,083
Other operating income	37	55	11	2	–	15	–	122
Total income	3,738	3,552	2,986	666	329	15	-83	11,205
EBITA	604	154	86	-14	26	-28	–	829
EBITA margin, %	16.3	4.4	2.9	-2.1	7.9	–	–	7.5
Items affecting comparability	–	–	–	–	–	–	–	50
Adjusted EBITA	604	154	137	-14	26	-28	–	879
Adjusted EBITA margin, %	16.3	4.4	4.6	-2.1	7.9	–	–	7.9
Amortisation of intangible assets								-112
Operating profit (EBIT)								717
Net financial items								-260
Profit after net financial items								457
Profit before tax								457
Tax on profit for the period								-97
Profit for the period								359
Assets	5,729	6,405	1,836	452	178	118	–	14,718

* The 'Unallocated items' column consists of centrally approved costs for general central administration, restructures and acquisitions.

NOTE 3 Revenue from Contracts with Customers

												Group
	Nytida		Vardaga		Stendi		Altiden		Klara			eliminations	Group
SEK million	2021	2020	2021	2020	2021	2020	2021	2020	2021	2020	2021	2020	2021	2020
Own Management	786	786	638	548	678	672	175	56	–	–	–	–	2,277	2,062
Contract Manage	163	160	333	319	59	53	84	102	–	–	–	–	639	634
ment
Staffing	–	–	–	–	–	–	–	–	100	89	-28	-22	72	67
Total	949	946	970	867	737	726	259	158	100	89	-28	-23	2,988	2,764

Type of service delivery (October-December)

Type of service delivery (January-December)

										Group
	Nytida		Vardaga		Stendi		Altiden		Klara			eliminations	Group
SEK million	2021	2020	2021	2020	2021	2020	2021	2020	2021	2020	2021	2020	2021	2020
Own Management	3,087	3,100	2,377	2,184	2,709	2,726	526	225	–	–	0	–	8,702	8,235
Contract Manage	636	601	1,287	1,313	230	249	356	438	–	–	0	–	2,512	2,602
ment
Staffing	–	–	–	–	–	–	–	–	368	329	-99	-83	265	246
Total	3,723	3,701	3,664	3,497	2,939	2,975	882	663	368	329	-99	-83	11,478	11,083

NOTE 4 Items affecting comparability

SEK million	2021 Oct-Dec	2020 Oct-Dec	2021 Jan-Dec	2020 Jan-Dec
Provision, legal proceeding in Norway	-145	-	-145	-
Restructuring-related items	-	-	-	-50
Total items affecting comparability	-145	-	-145	-50

Items affecting comparability in 2021 refer to further provision in Stendi in connection with a legal proceeding in Norway related to costs for temporary staff. Items affecting comparability

Note 5 Business combinations

EKKOfondens omsorgsverksamhet, which offers residential facilities for adults with disabilities across Denmark, was acquired on 30 April 2021. The consideration transferred for the acquisition comprises cash of SEK 222 million, including contingent consideration of SEK 58 million. At 31 December, the contingent consideration was valued at SEK 53 million, and the total consideration amounted to SEK 222 million. The change was recognised in profit/loss. The acquisition generated goodwill of SEK 192 million, corresponding to the difference between the consideration transferred and the net identifiable assets acquired. The goodwill mainly relates to a stronger market position and operative and administrative synergies. The acquisition analysis is preliminary, since intangible assets are undergoing valuation. Since the acquisition date, EKKOfonden has contributed SEK 256 million to net sales, and SEK 13 million to profit before tax. If the acquisition had taken place on 1

in 2020 relate to the restructuring programme in Norway, which was announced in the year-end report for 2019.

January 2021, the company would have contributed SEK 379 million to net sales and SEK 17 million to profit before tax.

The acquisition of LSS Omsorgen was completed on 1 February 2021 for a consideration of SEK 65 million. The acquisition generated goodwill of SEK 23 million, corresponding to the difference between the consideration transferred and the net identifiable assets acquired. The acquisition analysis is preliminary, since intangible assets are undergoing valuation. Since the acquisition date, LSS Omsorgen has contributed SEK 53 million to net sales, and SEK 5 million to profit before tax. If the acquisition had taken place on 1 January 2021, the company would have contributed SEK 58 million to net sales and SEK 6 million to profit before tax.

During the quarter, Christinagården i Lindesberg AB was acquired. An acquisition analysis has not yet been prepared, as the date of transfer was 1 February 2022.

Effect on financial position

SEK million	EKKO LSS Omsorgen
Net identifiable assets excl. intangible assets	–	34	34
Intangible assets	35	8	43
Group goodwill	192	23	215
Earn-out revaluation	-5	–	-5
Total consideration (price of shares)	222	65	287
Less: earn-out	-53	–	-53
Less: cash and cash equivalents	-43	-2	-45
Net change in cash	126	63	189

Allocation of net assets on the acquisition date

SEK million		EKKO LSS Omsorgen	Total
Fixed assets	14	32	46
Right-of-use assets	–	71	71
Accounts receivable and other receivables	11	8	19
Cash and cash equivalents	43	2	45
Non-current liabilities and provisions	-21	–	-21
Lease liabilities	–	-71	-71
Accounts payable and other liabilities	-47	-7	-54
Net identifiable assets	0	34	34

Date	Acquisitions	Divestments	Operations	Segments	Annual sales
1 Feb 2021	LSS Omsorgen	-	Residential services for people with disabilities	Nytida	SEK 58 million
29 Apr 2021	EKKOfondens om sorgsverksamhet	-	Social care for young people and adults	Altiden	DKK 270 million

Acquisitions and divestments during the year

NOTE 6 Fair value of financial instruments in the fair value hierarchy

			Classification in the fair value hierarchy
			1		2		3
SEK million	2021 31 Dec	2020 31 Dec	2021 31 Dec	2020 31 Dec	2021 31 Dec	2020 31 Dec	2021 31 Dec	2020 31 Dec
Assets
Interest-rate derivatives	3	2	–	–	3	2	–	–
Investments in housing cooperative associations	97	89	–	–	–	–	97	89
Liabilities Interest-rate derivatives	–	7	–	–	–	7	–	–

Fair value of financial instruments in the fair value hierarchy

Ambea applies the following hierarchy for the fair value measurement of financial instruments:

Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities This level includes Eligible treasury bills, Bonds and Other interest-bearing securities. Remeasurement is recognised in Net financial items.

Level 2 – Observable data for assets or liabilities other than quoted prices included in Level 1, either directly (i.e. as price quotations) or indirectly (i.e. derived from price quotations). This level includes derivative instruments that are recognised under Other current assets or Other current liabilities. Level 3 –Data for assets or liabilities not based on observable market data. Participations in tenant-owner associations are measured using the price trend for tenant-owned apartments in the area, with adjustments for the specific conditions that apply to Ambea's apartments. Earn-out liabilities measured at fair value based on management's best estimate of possible outcome.

Ambea has loans denominated in both SEK and NOK and is thereby exposed to interest-rate risk. According to the company's financial policy, at least 50 per cent of the interest-rate risk should be hedged. To reduce the company's interest-rate risk, the company purchased an interest-rate swap and an interest rate cap in March 2019, both with three-year maturities. In the second quarter, these were extended to four years and will mature in 2024. In total, 60 per cent of the interest-rate risk was hedged with interest-rate derivatives at the balance-sheet date.

Derivatives are classified as Level 2 assets in the fair value hierarchy. The change in fair value of the interest-rate cap and interest-rate swap was recognised in other comprehensive income. Ambea uses standard bank pricing models for the valuation of purchased interest-rate caps and interest-rate swaps. The valuation is based on the bank's standard pricing model and methodology. The valuation is based on the bank's average price.

Note 7 Pledged assets and contingent liabilities

SEK million	2021 31 Dec	2020 31 Dec
Leased assets	128	115
Chattel mortgages	–	1
Total pledged assets	128	116

NOTE 8 Reconciliation of financial statements

SEK million	2021 Oct-Dec	2020 Oct-Dec	2021 Jan-Dec	2020 Jan-Dec
Growth/Acquired growth
Net sales growth (%)	8	-1	4	0
Of which acquired growth (%)	4	2	2	4
Of which currency effect (%)	2	-3	0	-3
Of which organic growth (%)	2	0	2	-1
Operating margin (EBIT)
Net sales	2,988	2,764	11,478	11,083
Operating profit (EBIT)	37	174	598	717
Operating margin, EBIT (%)	1.2	6.3	5.2	6.5
EBITA and adjusted EBITA Operating profit (EBIT)	37	174	598	717
Amortisation and impairment of intangible assets	32	27	114	112
EBITA	69	200	712	829
Items affecting comparability	145	–	145	50
Adjusted EBITA	214	200	857	879
Net sales	2,988	2,764	11,478	11,083
EBITA margin (%)	2.3	7.3	6.2	7.5
Adjusted EBITA margin (%)	7.2	7.3	7.5	7.9
EBITDA and adjusted EBITDA
Operating profit (EBIT)	37	174	598	717
Depreciation, amortisation and impairment of assets	310	228	1,052	896
EBITDA	347	402	1,650	1,613
Items affecting comparability	145	–	145	50
Adjusted EBITDA	492	402	1,794	1,663
EBITDA and adjusted EBITDA excluding IFRS 16
Operating profit (EBIT)	37	174	598	717
Depreciation, amortisation and impairment of assets	310	228	1,052	896
Additional: Rental payments Properties	-289	-207	-985	-798
Additional: Rental payments Vehicles	-9	-6	-36	-25
Additional: Capital loss from terminated agreements	-1	–	-1	-3
Net effect of IFRS 16 on EBITDA EBITDA excluding effect of IFRS 16	-299 48	-213 188	-1,022 628	-827 786
Items affecting comparability	145	–	145	50
Adjusted EBITDA excluding IFRS 16	193	188	773	836
EBITA and adjusted EBITA excluding IFRS 16
Operating profit (EBIT)	37	174	598	717
Amortisation and impairment of intangible assets	32	27	114	112
EBITA	69	201	712	829
Less, amortisation IFRS 16	245	181	842	708
Additional: Rental payments Properties	-289	-207	-985	-798
Additional: Rental payments Vehicles	-9	-6	-36	-25
Additional: Capital loss from terminated agreements	-1	–	-1	-3
Net effect of IFRS 16 on EBITA	-54	-32	-180	-119
EBITA excluding effect of IFRS 16	15	168	532	710
Items affecting comparability	145	–	145	50
Adjusted EBITA excluding IFRS 16	160	168	677	760
EBITA margin, excluding IFRS 16	0.5	6.1	4.6	6.4
Adjusted EBITA margin, excluding IFRS 16	5.4	6.1	5.9	6.9

Note 8 Reconciliation of financial statements – continued

SEK million	2021 Oct-Dec	2020 Oct-Dec	2021 Jan-Dec	2020 Jan-Dec
Operating cash flow
EBITDA	347	402	1,650	1,613
Adjustment for non-cash items	128	0	131	13
Cash flow from investing activities excl. acquisition and divestment of subsidiaries	-22	-28	-70	-122
Adjustment for cash flow from investing activities related to increased capacity/growth	6	11	20	60
Change in working capital	55	183	-152	103
Operating cash flow	514	568	1,579	1,667
Cash conversion (%) Operating cash flow	514	568	1,579	1,667
EBITDA	347	402	1,650	1,613
Cash conversion (%)	148.1	141.4	95.7	103.3
Items affecting comparability
Reversal of restructuring and acquisition-related costs
– of which costs included in the line item of other external costs	145	3	145	32
– of which costs included in the line item of personnel costs	-	-3	-	18
Total restructuring and acquisition-related costs	-	-	-	50
Total items affecting comparability	145	-	145	50

SEK million	2021 31 Dec	2020 31 Dec
Net debt, Net debt/Adjusted EBITDA, RTM
Non-current interest-bearing liabilities	7,489	5,933
Current interest-bearing liabilities	2,418	2,468
Less: cash and cash equivalents	-86	-25
Net debt	9,821	8,375
Adjusted EBITDA RTM	1,794	1,663
Net debt/Adjusted EBITDA, RTM (times)	5.5	5.0
Net debt, Net debt/Adjusted EBITDA, RTM excl. effect of IFRS 16 Non-current interest-bearing liabilities	7,489	5,933
Less: non-current lease liabilities pertaining to properties recognised on the lease liability line	-6,375	-5,080
Less: non-current lease liabilities pertaining to vehicles, recognised on the lease liability line	-121	-87
Current interest-bearing liabilities	2,418	2,468
Less: current lease liabilities pertaining to properties recognised on the lease liability line	-741	-623
Less: current lease liabilities pertaining to vehicles, recognised on the lease liability line	-38	-32
Less: cash and cash equivalents	-86	-25
Net debt excluding effect of IFRS 16	2,547	2,553
Adjusted EBITDA RTM	773	836
Net debt/Adjusted EBITDA, RTM (times)	3.3	3.1