Ambea — Earnings Release 2018

May 17, 2018

Continued increase in share of Own Management and stable profitability

First quarter January–March

• Net sales rose 3 per cent to SEK 1,467 million (1,422)
• Operating profit (EBIT) increased to SEK 86 million (73)
• EBITA increased 22 per cent to SEK 105 million (86) corresponding to a margin of 7.2 per cent (6.1)
• Adjusted EBITA, excluding items affecting comparability, decreased 1 per cent to SEK 109 million (110). The adjusted EBITA margin was 7.4 per cent (7.7)
• Items affecting comparability in the quarter amounted to SEK -4 million (-24), attributable to the divestment of personal assistance operations that was completed in the fourth quarter of 2017.
• Profit for the period was SEK 60 million (33)
• Earnings per share amounted to SEK 0.88 (0.52) before and SEK 0.87 (0.52) after dilution
• Operating cash flow amounted to SEK 111 million (87)
• Free cash flow totalled SEK 66 million (24)
• Norway (Heimta) and Staffing Solutions (Klara) are reported as separate segments as of the first quarter

Significant events during the quarter

There were no significant events during the quarter.

Consolidated key figures

	2018	2017	Change	2017/2018	2017	Change
SEK million	Jan–March	Jan–March	%	Rolling 12 months	Jan–Dec	%
Net sales	1,467	1,422	3	5,861	5,816	1
EBITA	105	86	22	480	461	4
Operating margin, EBITA (%)	7.2	6.1		8.2	7.9
Adjusted EBITA	109	110	-1	497	498	0
Operating margin, adjusted EBITA (%)	7.4	7.7		8.5	8.6
Operating profit, EBIT	86	73	18	416	402	3
Operating margin, EBIT (%)	5.9	5.1		7.1	6.9
Profit after tax	60	33	82	252	226	12
Earnings per share before dilution, SEK	0.88	0.52	69	3.73	3.37	11
Earnings per share after dilution, SEK	0.87	0.52	67	3.88	3.37	15
Operating cash flow	111	87	28	483	459	5
Free cash flow	66	24	175	374	332	13

For definitions of key figures, see Note 9

Comments from Fredrik Gren, President and CEO

Continued increase in share of Own Management contracts and stable profitability

The year has started well with continued favourable growth in Own Management and many beds in ramp-up phase. Together with start-up units, our acquisitions made a positive contribution to sales and profitability. However, as previously announced, volume reductions in Contract Management operations had an adverse impact on performance. During the quarter, we launched our new brands: Klara for staffing solutions and Heimta for operations in Norway, which both now report as separate segments.

Net sales in the first quarter amounted to SEK 1,467 million (1,422). Own Management accounted for 67 per cent (62) of net sales. Adjusted EBITA, excluding items affecting comparability, was in line with the previous year at SEK 109 million (110).

Net sales in the quarter rose 3 per cent and were positively impacted by acquisitions and start-ups. The divestment of personal assistance operations in 2017, last year's lost Vitale contracts, and lower volumes in Contract Management had a negative impact on sales. In staffing, our subscription services continued to grow and were positively impacted by our new acquisition Elevhälsan, though this did not fully offset the reduction in sales related to hiring out of temporary care professionals.

Adjusted EBITA was in line with the previous year. While margins in elderly care strengthened in the quarter due to favourable occupancy and low ramp-up costs, profitability in Nytida and Heimta decreased. Nytida was negatively impacted by the occupancy rate in activities related to children and young people, while we can note a good start-up rate for the previously closed supported housing units. LSS operations continue to progress very well. In Norway, where we continue to expand our operations, we had a total of 34 beds in the ramp-up phase by the end of the quarter, which lays the foundation for healthy organic growth in the future, though it impacts margins in the short term.

During the quarter, we opened one nursing home, Villa Basilika, with 63 beds that quickly reached full capacity. In disability care, we opened an LSS group home with six beds and a day services unit with 40 placements. In Norway, we opened a record 19 beds during the quarter. At the end of the quarter, the total number of beds/placements under construction, or for which leases has been signed, was 871.

As part of work improving profitability and also retaining competitiveness in the future, Ambea decided during the quarter to adapt the Group's administrative costs. The adjustments include efficiency improvements by digitising and automating administrative procedures. The measures will have a limited impact on earnings in 2018, while we expect the full effect of savings in 2019, amounting to about SEK 30 million.

Again this quarter, Ambea is welcoming new companies to the Group, with the acquisitions of Arona Omsorger and the staffing services company Elevhälsan. Arona Omsorger provides residential care and support for adults in autism spectrum disorders. Elevhälsan is specialised in staffing solutions for school health services in elementary and high schools and complements and extends Ambea's existing range of staffing solutions.

In the quarter, Ambea was one of the finalists in the HBI Business Model Innovation Awards for the Best Use of HR in our integration project, where new residents are offered a traineeship, and in the Best Use of Digital Health category for our Virtual Reality project, which was started in 2017 in Vardaga.

We continue to deliver on our strategy with an increased share of Own Management contracts and growth through acquisitions. Despite lower volumes in Contract Management operations and many beds in the ramp-up phase, we have successfully retained healthy profitability.

Fredrik Gren

Group

First quarter

Net sales Net sales rose 3 per cent to SEK 1,467 million (1,422).

Net sales in Own Management amounted to SEK 986 million (889) up 11 per cent compared with the year-earlier period, due to acquisitions and start-up units. Personal assistance operations, which were divested in November 2017, contributed SEK 18 million in the first quarter of the previous year.

Net sales in Contract Management amounted to SEK 403 million (452). This decrease in sales compared with the year-earlier period was due to contract terminations in 2017.

Net sales in staffing services decreased 4 per cent to SEK 78 million (81).

Earnings

EBIT rose 18 per cent to SEK 86 million (73) corresponding to a margin of 5.9 per cent (5.1).

EBITA rose 22 per cent to SEK 105 million (86). The EBITA margin was 7.2 per cent (6.1). EBITA for the quarter was impacted by items affecting comparability of SEK -4 million (-24). attributable to the divestment of personal assistance operations that was com-pleted in the fourth quarter of 2017.

Adjusted EBITA for the quarter decreased 1 per cent to SEK 109 million (110). Acquired companies and start-up units had a positive impact on earnings. The development of Contract Management, lower occupancy and higher start-up costs had an adverse effect on earnings. Calendar effects had a marginal negative impact on earnings. Whilst Easter had a negative impact of approximately SEK 4.5 million in the quarter, this was partly offset by lower costs in January. The adjusted EBITA margin was 7.4 per cent (7.7).

Net financial items

Net financial items for the quarter amounted to SEK -9 million (-28). The change was due to improved terms on the refinancing completed in the second quarter of 2017 and the new commercial paper program that was established in december 2017.

Income tax

Tax expense for the period was SEK 17 million (11) corresponding to a tax rate of 22 per cent (25).

Profit for the period

Net profit for the period amounted to SEK 60 million (33) corresponding to earnings per share of SEK 0.88 (0.52) before dilution and SEK 0.87 (0.52) after dilution.

Distribution of net sales

Net sales by segment	2018	2017 Jan–March Jan–March
Vardaga	38%	40%
Nytida	49%	49%
Heimta	8%	5%
Klara	5%	6%
Total	100%	100%

Net sales by contract model	2018	2017 Jan–March Jan–March
Own Management	67%	62%
Contract Management	28%	32%
Staffing	5%	6%
Total	100%	100%

Net sales by segment Jan–Mar 2018

Distribution of net sales

		Vardaga			Nytida			Heimta			Klara		items	Unallocated		Group
SEK million	2018	2017 jan–mar jan–mar	Change %	2018	2017 jan–mar jan–mar	Change %	2018	2017 jan–mar jan–mar	Change %	2018	2017 jan–mar jan–mar	Change %	2018	2017	2018 jan–mar jan–mar jan–mar jan–mar	2017	Change %
Own Mana gement	270	246	10	595	556	7	121	87	39	–	–	–	–	–	986	889	11
Contract Manage ment	281	318	-12	122	134	-9	–	–	–	–	–	–	–	–	403	452	-11
Staffing	–	–	–	–	–	–	–	–	–	78	81	-4	–	–	78	81	-4
Total	551	564	-2	717	690	4	121	87	39	78	81	-4	–	–	1,467	1,422	3

Own Management – total in operation, including acquisitions

	OB		Change		CB
SEK million	Units	Beds/ Placements	Units	Beds/ Placements	Units	Beds/ Placements
Vardaga	26	1,253	1	63	27	1,316
Nytida – beds	178	1,804	–	-221	178	1,782
Nytida – placements	74	2,139	–	30	74	2,169
Norway	59	173	-2	14	57	187
Total	337	5,369	-1	85	336	5,454

Own Management – pipeline

	Quarterly change
SEK million	OB	Opened during the quarter	New during the quarter2	CB
Vardaga	777	63	14	728
Nytida – beds	80	6	–	74
Nytida – placements	1053	40	–	65
Norway	22	19	1	4
Total	984	128	15	871

Contract Management – pipeline

		Allocation decisions during the quarter4
SEK million	Units	Beds	Annual revenue	during the quarter Annual revenue5
Won	5	77	55	–
Renewed confidence	–	–	–	–
Lost	5	84	48	–
Contracts retaken to be run under municipal auspices	4	102	56	–

¹ An operation with 21 beds closed until further notice.

² New is the sum total of signed contracts and units under construction. For more information about expected openings, refer to Own Management – pipeline under ambea.se/investerare

³ Opening balance adjusted for six beds previously leased but that will not be utilised in the future.

⁵ Shows which contracts were started up or handed back during the quarter and their annual revenue.

⁴ Allocation decisions during the quarter entail that Ambea received decisions during the quarter about contracts that have to be handed back or started up. The time from allocation to handback or start-up varies from a couple of months to a year. For Vardaga, it is nine to 12 months and for Nytida it is six to nine months.

Cash flow

SEK million	2018	2017	2017/2018 Jan–March Jan–March Rolling 12 months	2017 Jan–Dec
Cash flow from operating activities before changes in working capital	77	35	425	383
Cash flow from changes in working capital	-6	-4	-43	-42
From operating activities	71	31	382	342
Cash flow from investing activities (excluding acquisitions/divestments and
investments in financial assets)	-5	-7	-8	-10
Free cash flow	66	24	374	332

Free cash flow for the quarter amounted to SEK 66 million (24). The increase in free cash flow compared with the year-earlier period is mainly attributable to improved operating profit.

Financial position

SEK million	31 March 2018	31 March 2017	31 Dec 2017
Net interest-bearing debt	2,046	1,999	2,015
Equity/assets ratio (%)	45.4	38.1	44.5
Net debt/Rolling 12 months adjusted EBITDA	3.7	3.7	3.7

For definitions of key figures, see Note 9

At 31 March 2018, net debt amounted to SEK 2,046 million (1,999) or 3.7 times rolling 12 months adjusted EBITDA. The increase in net debt is attributable to financing of acquisitions.

On the balance-sheet date, equity amounted to SEK 2,544 million, compared with SEK 2,480 million on 31 December 2017.

Vardaga

Vardaga offers individual-focused healthcare and care services in special residential nursing homes for the elderly. Vardaga is one of Sweden's largest private providers of elderly care services with approximately 75 nursing homes throughout Sweden, where 6,500 employees work with a focus on safeguarding the quality of life and security of every individual.

Quarter

Vardaga's net sales decreased 2 per cent year-on-year to SEK 551 million (564).

Net sales in Own Management amounted to SEK 270 million (246) an increase of 10 per cent attributable to higher occupancy in established units and to start-up units.

Net sales in Contract Management amounted to SEK 281 million (318). The decline of 12 per cent was due to contracts terminated during the past year. During the fourth quarter of 2017, one of the largest contracts was handed back, Hemmet för Gamla, which contributed revenues of SEK 22 million in the first quarter of 2017.

EBITA rose 9 per cent to SEK 36 million (33). Start-up Own Management units with favourable occupancy and thereby lower start-up costs in the quarter had a positive impact on EBITA. Contract Management had a negative effect compared with the year-earlier period. The calendar effect had a marginal impact on profit. The EBITA margin was 6.5 per cent (5.8).

Vardaga's operating margin (EBITA). RTM %

SEK million	2018	2017 Jan–March Jan–March	Change %	2017/2018 Rolling 12 months	2017 Full-year	Change %
Net sales	551	564	-2	2,247	2,260	-1
EBITA	36	33	9	157	154	2
Operating margin, EBITA (%)	6.5	5.8		7.0	6.8

Own Management – total in operation

	OB		Quarterly change		CB
	Units	Beds	Units	Beds	Units	Beds
Beds	26	1,253	1	63	27	1,316

Own Management – pipeline

			Quarterly change
	OB		Opened during the quarter	New during the quarter6	CB
Beds		777	63	14	728

Contract Management – pipeline

		Allocation decisions during the quarter7	Start-up/terminated during the quarter
	Units	Beds	Annual revenue	Annual revenue 8
Won	1	50	38	–
Renewed confidence	–	–	–	–
Lost	1	60	31	–
Contracts retaken to be run under municipal auspices	3	102	52	–

6 New is the sum total of signed contracts and units under construction. For more information about expected openings, refer to Own Management – pipeline under ambea.se/investerare.

7 Allocation decisions during the quarter entail that Ambea received decisions during the quarter about contracts that have to be handed back or started up. The time from allocation to handback or start-up varies. For Vardaga, it is nine to 12 months and for Nytida it is six to nine months.

8 Shows which contracts were started up or handed back during the quarter and their annual revenue.

Nytida

Nytida provides support and care to children, young people and adults for satisfying disability care and psychosocial problems throughout the clients' lives. Nytida offer residential care, day-care activities, and individual, family and school support at approximately 350 units throughout Sweden. Using tried-and-proved models and in-depth knowledge, our 7,000 employees work to strengthen the individual's ability to live an independent life.

Quarter

Net sales rose 4 per cent to SEK 717 million (690).

Net sales under Own Management amounted to SEK 595 million (556) an increase of 7 per cent. Growth was attributable to acquisitions and start-up units while lower occupancy in supported housing units for children and young people had a negative impact. Personal assistance operations, which were divested in the previous year, contributed SEK 18 million in the first quarter of 2017.

Net sales in Contract Management amounted to SEK 122 million (134). This decrease in sales was due to the termination of several major contracts in 2017.

EBITA was in line with the previous year at SEK 77 million (77). While acquisitions had a positive impact on earnings, lower occupancy had a negative impact. The lower occupancy pertains to supported housing units for children and young people, in part due to the units closed at the end of the first quarter of 2017 and that are now in the start-up phase.

The calendar effect had a marginal impact on profit.

The EBITA margin was 10.7 per cent (11.2).

In February, Arona Omsorger was acquired and consists of an LSS group home and day services.

Nytida's operating margin (EBITA). RTM %

SEK million	2018 Jan–March Jan–March	2017	Change %	2017/2018 Rolling 12 months	2017 Full-year	Change %
Net sales	717	690	4	2,891	2,864	1
EBITA	77	77	0	350	350	0
Operating margin, EBITA (%)	10.7	11.2		12.1	12.2

Nytida

Own Management – total in operation

	OB		Quarterly change			CB
		Beds/		Beds/		Beds/
	Units	Placements	Units	Placements	Units	Placements
Beds	178	1,804	–	-229	178	1,782
Placements	74	2,139	–	30	74	2,169

Own Management – pipeline

	Quarterly change
	OB	Opened during the quarter	New during the quarter10	CB
Beds	80	6	–	74
Placements	10511	40	–	65

Contract Management – pipeline

	Allocation decisions during the quarter12	Start-up/terminated during the quarter
	Units	Beds	Annual revenue	13 Annual revenue
Won	4	27	17	–
Renewed confidence	–	–	–	–
Lost	4	24	17	–
Contracts retaken to be run under municipal auspices	1	–	4	–

⁹ An operation with 21 beds closed until further notice.

¹⁰ New is the sum total of signed contracts and units under construction. For more information about expected openings,

refer to Own Management – pipeline under www.ambea.se/investerare.

¹¹ Opening balance adjusted for six beds previously leased but that will not be utilised in the future.

¹² Allocation decisions during the quarter entail that Ambea received decisions during the quarter about contracts that have to be handed back or started up. The time from allocation to handback or start-up varies. For Vardaga, it is nine to 12 months and for Nytida it is six to nine months.

¹³ Shows which contracts were started up or handed back during the quarter and their annual revenue.

Heimta

Heimta consists of support and residential care services in the fields of disabled care and psychiatric care in Norway. The operations have about 450 employees and offer residential care, user-guided personal assistance, rehabilitation services, temporary relief for relatives and investigatory services in large parts of Norway.

Quarter

Net sales rose 39 per cent to SEK 121 million (87) due to acquisitions. At the end of the second quarter of 2017, a number of contracts in Vitale were terminated, which had an adverse effect of SEK 14 million year-on-year in the quarter.

EBITA was SEK 3 million (3) representing a margin of 2.5 per cent (3.4). Start-up costs due to new Own Management units were charged against profit in the quarter, while acquisitions had a positive impact.

From March 2018, all operations are conducted under the Heimta brand.

SEK million	2018 Jan–March Jan–March	2017	Change %	2017/2018 Rolling 12 months	2017 Full-year	Change %
Net sales	121	87	3914	404	369	9
EBITA	3	3	015	19	19	0
Operating margin, EBITA (%)	2.5	3.4		4.7	5,1

Own Management – total in operation

	OB		Change		CB
	Units	Beds	Units	Beds	Units	Beds
Total in operation	59	173	-2	14	57	187

Own Management – pipeline

			Quarterly change
	OB	Opened during the quarter	New during the quarter16	CB
Beds		22 19	1	4

¹⁴ Adjusted for currency effects (SEK 3 million), the increase was 43 per cent year-on-year.

¹⁵ Adjusted for currency effects (SEK 0 million), the increase was 6 per cent year-on-year.

¹⁶ New is the sum total of signed contracts and units under construction. For more information about expected

openings, refer to Own Management – pipeline under www.ambea.se/investerare.

Klara

Klara is one of Sweden's leading providers of staffing services for healthcare and care services. Klara is an authorised staffing company and are ISO certified. Based on personal service and long-standing experience of the industry, Klara assists both public and private contracting authorities by providing superior staffing solutions. Klara mediate thousands of assignments every year and conduct operations throughout Sweden.

Quarter

Net sales declined 4 per cent to SEK 78 million (81). Weaker performance for Rent a Doctor/Rent a Nurse was partly offset by acquisitions, which contributed net sales of SEK 7 million in the first quarter of 2018.

EBITA was SEK 2 million (1) representing a margin of 2.6 per cent (1.2). Acquisitions and a positive trend in Klara Team, which provides qualified on-call services on a subscription basis, made positive contributions. Rent a Doctor/Rent a Nurse operations made a negative contribution.

On 4 January, Ambea acquired Elevhälsan, which is specialised in staffing solutions for school health services in elementary and high schools.

In the first quarter of 2018, Ambea's staffing solutions changed name to Klara.

SEK million	2018 Jan–March Jan–March	2017	Change %	2017/2018 Rolling 12 months	2017 Full-year	Change %
Net sales	78	81	-4	319	322	-1
EBITA	2	1	100	13	12	8
Operating margin, EBITA (%)	2,6	1,2		4,1	3,7

Related party transactions

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

Events after the end of the quarter

After the end of the quarter, Ambea's Nytida business area acquired Stöd och Resurs (Curation Holding AB) with operations in residential care, day services and shortterm accommodation for children and adults with neuropsychiatric disabilities.

After the end of the quarter, the company has increased the Revolving Credit Facility with 500 million, total 3 000 million, with unchanged terms and conditions.

Seasonal variations

Ambea's results of operations are 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. The first or second quarter is affected by Easter, depending on which quarter the Easter holiday occurs, while the first and fourth quarter are affected by Christmas and New Year holidays.

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

Employees

The average number of full-time employees (FTEs) during the quarter was 7,849 (7,656), with the increase mainly due to acquisi-tions.

Parent Company

The Parent Company's earnings pertain to Group-wide costs. During the quarter, the Parent Company's net sales amounted to SEK 6 million (6). Loss for the period was SEK -5 million (-19)

The main reason for the improved earnings was that the preceding year was charged with legal and consultancy fees connected to the IPO process.

Risks and uncertainties

Ambea's operations and development are impacted by demographic, economic and political factors, as well as by the general development in the market for care services. Changes in these factors may lead to a reduction in demand for Ambea's care services, which could have a negative impact on the company. Ambea works continuously on following up, analysing and taking actions to mitigate risks. Risk management is based on developed systems, division of responsibilities and procedures that are well secured in the or-ganisation.

Demand for Ambea's care services is impacted to a great extent by legislation and political decisions, since municipalities are customers and the procuring party. Accordingly, Ambea's development depends on the orientation of the various municipalities in terms of the provision of healthcare and care services. Risks associated with freedom of choice can include Ambea being be unable to perform the specific service at the set price, or that not enough care recipients choose the company's residential care units or locations. There is also a risk that during public procurement, the company will not have its existing contracts extended or will not win new contracts.

Restrictions in the possibility to provide private care services for profit and stricter rules and regulations as regards permits and su-pervision can lead to restrictions of Ambea's business model. Ambea is thus affected by, and must comply with, changes and interpretations of new and current legislation, ordinances, regulations and practices. Infringements or shortcomings in the fulfilment of these could result in the company being subject to fees, fines, penalties or other sanctions. Such factors can also lead to adaptation actions and costs.

The quality of our operations is Ambea's principal priority. In addition to rigorous and systematic internal follow-ups of quality, comprehensive follow-ups and quality checks are performed by authorities, and permits are required for conducting operations. Should the company be unable to fulfil the contractual requirements and quality standards, the company could become subject to penalties, damages, contractual penalties, or ultimately lose the customer contracts and/or permits which the company needs to conduct business. Since Ambea's operations are also dependent on permits, the loss of, or delays in receiving, permits could adversely affect Ambea's operations, earnings and financial position.

Ambea is also exposed to financial risks, whereby changes in the credit and capital market could affect Ambea's financial position.

Risks associated with the performance of care services are managed by the management of the various companies at different levels, taking into account the procedures and governance principles applied in the Group. Follow-up of the operations occurs in part in co-operation with contracting authorities and customers and in part in the form of internal quality checks. The design of contracts has a material impact on the risks associated with individual assignments. Financial risks are managed by the finance department.

The Board of Directors' assurance

The Board of Directors and President hereby provide their assurance that this interim report provides a true and fair overview 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, 16 May 2018

Lena Andersson Hofsberger Chairman of the Board
Daniel Björklund	Anders Borg	Thomas Hofvenstam
Ingrid Jonasson Blank	Hans Fredrik Årstad	Gunilla Rudebjer
Patricia Briceño Employee representative	Haralampos Kalpakas Employee representative	Magnus Sällström Employee representative

Fredrik Gren President and CEO

Presentation of first quarter of 2018

Ambea will hold a presentation for the financial market, including the possibility to participate in a teleconference, at 10:00 a.m. CET on Thursday 17 May 2018. The presentation will be held in English and will also be available as a webcast on ambea.se.

Call-up information

To make sure that the hook-up to the conference call works, please call a few minutes before the conference call starts to register.

Phone numbers:
Sweden:	+46 8 5033 6574
	United Kingdom: +44 330 336 9105
USA:	+1323 794 2094

Contact

Louise Tjeder, IR and Strategy Manager, telephone +46 73 143 17 68

Forthcoming report occasions

Q2 interim report	21 August
Q3 interim report	13 November

Ambea, which is active in healthcare and care services, has approximately 15,000 employees. We offer services in disabled care, individual and family care, and care of the elderly with a focus on residential care and Own Management. We aim to be the quality leader in all that we do and our vision is to make the world a better place, one person at a time. Total revenue and adjusted EBITA for the 2017 financial year amounted to SEK 5,816 million and SEK 498 million, respectively. The company was founded in 1996, is headquartered in Solna and listed on Nasdaq Stockholm.

Consolidated income statement in summary

SEK million	2018	2017	2017/2018 Jan–March Jan–March Rolling 12 months	2017 Jan–Dec
OPERATING INCOME
Net sales	1,467	1,422	5,861	5,816
Other operating income	10	11	82	83
Total operating income	1,477	1,434	5,943	5,899
OPERATING EXPENSES
Consumables	-44	-45	-180	-182
Other external costs	-297	-293	-1,144	-1,139
Personnel costs	-1,014	-997	-4,049	-4,033
Depreciation, amortisation and impairment of tangible and intangible assets	-32	-25	-117	-110
Profit/loss from participations in Group companies	-4	0	-27	-23
Other operating expenses	0	-1	-10	-10
Operating expenses	-1,391	-1,361	-5,527	-5,497
OPERATING PROFIT	86	73	416	402
Financial income	1	1	8	7
Financial expenses	-10	-29	-104	-121
Net financial items	-9	-28	-96	-114
PROFIT AFTER NET FINANCIAL ITEMS	77	45	320	288
PROFIT BEFORE TAX	77	45	320	288
Tax on profit for the period	-17	-11	-68	-62
PROFIT FOR THE PERIOD	60	33	252	226
Profit for the period attributable to:
Shareholders of the Parent Company	60	33	252	226
Non-controlling interests	–	0	–	–
	60	33	252	226
Earnings per share before dilution (SEK)	0.88	0.52	3.73	3.37
Earnings per share after dilution (SEK)	0.87	0.52	3.88	3.37

Consolidated statement of comprehensive income in summary

SEK million	2018 Jan–March	2017 Jan–March	2017/2018 Rolling 12 months	2017 Jan–Dec
PROFIT FOR THE PERIOD AFTER TAX	60	33	252	226
OTHER COMPREHENSIVE INCOME, ITEMS NOT TRANSFERABLE TO PROFIT OR LOSS
Remeasurement of defined-benefit pension plans	–	–	-2	-2
Tax related to remeasurement of defined-benefit pension plans	–	–	0	0
Total items that are not transferable to profit or loss	–	–	-2	-2
OTHER COMPREHENSIVE INCOME, ITEMS TRANSFERABLE TO PROFIT OR LOSS
Translation differences	14	-2	4	-12
Hedging of net investments in foreign operations	-13	3	-4	12
Tax related to net investments in foreign operations	3	-1	1	-3
Other	–	1	-1	–
Total items transferable to profit or loss	4	1	–	-3
Total other comprehensive income	4	1	-2	-5
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD	64	34	250	221
Comprehensive income for the period attributable to:
Shareholders of the Parent Company	64	34	250	221
Non-controlling interests	–	–	–	–

Earnings per share

Recalculation of average number of shares

Earnings per share have been recalculated retroactively because the company implemented a four-for-one share split, a share con-version and a bonus issue in the first quarter of 2017. For

more information, see Note K12 in the company's 2017 Annual Report.

	2018 Jan–March	2017 Jan–March	2017/2018 Rolling 12 months	2017 Jan–Dec
Profit for the period attributable to shareholders of the Parent Company, SEK million	60	33	252	226
Earnings per share before dilution
Average number of shares, thousands	67,617	64,950	67,595	66,937
Earnings per share before dilution, SEK	0.88	0.52	3.73	3.37
Earnings per share after dilution
Average number of shares, thousands	69,137	64,950	64,951	66,950
Earnings per share after dilution, SEK	0.87	0.52	3.88	3.37

Consolidated balance sheet in summary

SEK million	31 March 2018	31 March 2017	31 Dec 2017
ASSETS
Fixed assets
Goodwill	3,817	3,517	3,774
Customer contracts and customer relations	452	423	466
Other intangible assets	17	14	19
Tangible assets	212	173	201
Non-current receivables from Group companies	–	1	0
Derivative instruments	–	1	0
Deferred tax assets	68	94	76
Non-current receivables	27	22	26
Total fixed assets	4,593	4,245	4,562
Current assets
Inventories	0	0	0
Accounts receivable	646	563	624
Current receivables from Group companies	-	4	-
Other receivables	66	22	94
Prepaid expenses and accrued income	178	178	157
Cash and cash equivalents	77	427	87
	967	1,194	962
Assets held for sale	50	77	43
Total current assets	1,016	1,271	1,005
TOTAL ASSETS	5,609	5,516	5,567

Consolidated balance sheet in summary – continuation

SEK million	31 March 2018	31 March 2017	31 Dec 2017
EQUITY AND LIABILITIES
Equity
Share capital	2	2	2
Other capital contributions	4,965	4,772	4,965
Reserves	4	3	0
Retained earnings, including profit for the year	-2,427	-2,675	-2,487
Total equity attributable to shareholders of the Parent Company	2,544	2,101	2,480
Non-controlling interests	–	–	–
Total equity	2,544	2,101	2,480
Non-current liabilities
Non-current interest-bearing liabilities	367	2,141	710
Other non-interest-bearing liabilities	0	71	4
Pension provisions	6	6	6
Other provisions	0	18	0
Deferred tax liabilities	119	109	124
Total non-current liabilities	492	2,345	844
Current liabilities
Current interest-bearing liabilities	41	286	43
Commercial papers	1,715	–	1,349
Accounts payable	150	114	194
Tax liabilities	49	34	73
Other non-interest-bearing liabilities	71	70	96
Accrued expenses and deferred income	547	567	488
Total current liabilities	2,573	1,070	2,243
TOTAL EQUITY AND LIABILITIES	5,609	5,516	5,567

Consolidated statement of changes in equity in summary

SEK million	2018	2017 Jan–March Jan–March	2017 Jan–Dec
Opening balance	2,480	2,067	2,067
Total comprehensive income	64	34	221
Transactions with shareholders
New share issue	–	–	200
Issue expenses	–	–	-7
Warrants issued	–	–	2
Share buybacks	–	–	-5
Closing balance	2,544	2,101	2,480

Consolidated cash flow statement in summary

SEK million	2018 Jan–March	2017 Jan–March	2017/2018 Rolling 12 months	2017 Jan–Dec
OPERATING ACTIVITIES
Profit before tax	77	45	320	288
Adjustment for non-cash items	37	20	162	145
	114	65	482	433
Tax paid	-37	-30	-57	-50
Cash flow from operating activities before changes in working capital	77	35	425	383
CASH FLOW FROM CHANGES IN WORKING CAPITAL
Change in operating receivables	-10	-3	-40	-33
Change in operating liabilities	3	-1	-4	-8
Cash flow from operating activities	71	31	382	342
INVESTING ACTIVITIES
Investment in intangible assets	0	-1	-3	-4
Investment in tangible assets	-9	-9	-66	-66
Divestment of tangible assets	4	3	61	60
Free cash flow	66	24	374	332
Acquisition and disposal of shares and participations	-53	-18	-473	-438
Other financial assets	0	-1	2	1
Cash flow from investing activities	-58	-25	-479	-447
Cash flow after investing activities	13	5	-97	-105
FINANCING ACTIVITIES
New loans/Loans raised	367	132	3,871	3,636
Repayment of loan liabilities	-20	-29	-3,948	-3,957
Change in revolving credit facility	-363	–	-363	–
New share issue	–	–	196	196
Share buybacks	–	–	-5	-5
Cash flow from financing activities	-16	103	-249	-130
CASH FLOW DURING THE PERIOD	-3	109	-346	-235
Cash and cash equivalents on the opening date	87	318	427	318
Exchange rate differences in cash and cash equivalents	-7	1	-5	3
Cash and cash equivalents on the closing date	77	427	77	87

Parent company income statement in summary

SEK million	2018 Jan–March	2017 Jan–March	2017/2018 Rolling 12 months	2017 Full-year
INCOME
Net sales	6	6	25	25
	6	6	25	25
OPERATING EXPENSES
Other external costs	-7	-24	-23	-40
Personnel costs	-5	-1	-16	-12
Amortisation of intangible assets	0	–	0	–
Operating expenses	-12	-25	-39	-52
OPERATING PROFIT	-6	-19	-14	-27
Financial items	1	–	-30	-31
LOSS AFTER FINANCIAL ITEMS	-5	-19	-44	-58
Appropriations	–	–	57	57
LOSS BEFORE TAX	-5	-19	-13	-1
Tax on profit for the period	–	–	–	–
LOSS FOR THE PERIOD	-5	-19	-13	-1

Parent Company balance sheet in summary

SEK million	31 March 2018	31 March 2017	31 Dec 2017
ASSETS
Subscribed not paid in capital	–	200	–
Intangible assets
Software	0	–	0
Financial non-current assets
Participations in Group companies	4,128	1,935	4,127
Total fixed assets	4,128	1,935	4,127
Current assets
Receivables from Group companies	11	–	9
Other receivables	4	2	2
Tax assets	2	2	2
Prepaid expenses and accrued income	4	–	3
Cash and bank balances	8	15	9
Total current assets	29	19	25
TOTAL ASSETS	4,157	2,154	4,152
EQUITY AND LIABILITIES
Share capital	2	2	2
Statutory reserve	0	0	0
Total restricted equity	2	2	2
Share premium reserve	199	198	199
Retained earnings	1,924	1,929	1,925
Loss for the period	-5	-19	-1
Total non-restricted equity	2,118	2,109	2,123
TOTAL EQUITY	2,120	2,111	2,125
Non-current liabilities
Liabilities to credit institutions	306	–	659
Current liabilities
Commercial papers	1,715	–	1,349
Accounts payable	6	0	9
Liabilities to Group companies	–	7	–
Other liabilities	1	0	2
Accrued expenses	9	36	8
Total current liabilities	1,731	43	1,368
TOTAL EQUITY AND LIABILITIES	4,157	2,154	4,152

Key financial figures

SEK million	2018 Jan–March	2017 Jan–March	Change %	2017/2018 Rolling 12 months	2017 Jan–Dec	Change %
Net sales	1,467	1,422	3	5,861	5,816	1
Growth in net sales (%)	3	19		1	9
EBITDA	118	98	20	533	512	4
Operating margin, EBITDA (%)	8.0	6.9		9.1	8.8
Adjusted EBITDA	122	122	0	551	550	0
Operating margin, adjusted EBITDA (%)	8.3	8.6		9.4	9.5
EBITA	105	86	22	480	461	4
Operating margin, EBITA (%)	7.2	6.1		8.2	7.9
Adjusted EBITA	109	110	-1	497	498	0
Operating margin, adjusted EBITA (%)	7.4	7.7		8.5	8.6
Operating profit, EBIT	86	73	18	416	402	3
Operating profit, EBIT (%)	5.9	5.1		7.1	6.9
Profit before tax	77	45	74	320	288	11
Profit after tax	60	33	82	252	226	11
Earnings per share before dilution, SEK	0.88	0.52	69	3.73	3.37	11
Earnings per share after dilution, SEK	0.87	0.52	67	3.88	3.37	15
Return on equity (%)	2.4	1.6		10.9	9.9
Operating cash flow	111	87	28	483	459	5
Free cash flow	66	24	175	374	332	13
Cash conversion (%)	98.3	88.7	11	92.9	90.8	2

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 applied accounting policies comply with the accounting policies used when preparing the latest annual accounts.

IFRS 9 Financial Instruments, which entered into force on 1 January 2018, has no impact on Ambea's accounting.

IFRS 15 Revenue from Contracts with Customers entered into force on 1 January 2018 and replaces previous IFRSs related to revenue recognition. IFRS 15 is based on revenue being recognised once control of the good or service is transferred to the customer and entails new methods of determining how revenue is recognised.

The new standard will not result in a material difference in relation to the former standard. An accrual effect was identified relating to educational allowances, and as of 2018 these will not be recognised during school summer holidays. IFRS 15 contains expanded disclosure requirements in respect of revenue, see Note 4, page 25.

New and amended IFRS standards not yet applied

IFRS 16 Leases will become effective on 1 January 2019. The new standard is expected to have a material effect on the income statement and balance sheet (but not the cash flow). Detailed monetary calculations of the effect of IFRS 16 and the choice of transitional methods have not yet been carried out. The information provided for operating leases in the 2016 Annual Report gives an indi-cation of the nature and scope of the leases that currently exist. The company estimates that the new standard will increase the net debt/rolling adjusted EBIT-DA ratio by approximately 1.7 to 2.0.

Changes in segment reporting

The interim report for the first quarter of 2017 recognised the reversal of fees and depreciation on leasing of cars under unallocated items while these will be recognised under each segment in 2018. To improve comparability between years, the preceding year was restated and expenses were allocated to each segment based on the segment's share of costs in 2018. The adjustment influences Other external costs and Depreciation and impairment of tangible assets

Note 2 Key judgements and estimates

For information on key estimates and judgments in the interim report, reference is made to Note K33 in the company's 2017 Annual Report.

Note 3 Segment information

During the period, the Norwegian operations changed name to Heimta and staffing operations changed name to Klara.

In 2017, Heimta and Klara were reported together in the segment Other: Norway and Staffing Solutions. As of 2018, they report separately.

Vardaga Consists of elderly care

• Nytida Consists of care for people with functional disabilities
• Heimta Mainly comprises psychiatric support in residential care and outpatient care and residential care for people with life-long disabilities in Norway.
• Klara Consists of staffing solutions and hiring of doctors, nurses and other care professionals.

Net sales and EBITA by quarter in 2017 for Heimta and Klara

Since Klara and Heimta did not report separately in 2017, net sales and EBITA are summarised by quarter for the segments.

SEK million	Jan–March 2017	Apr–Jun 2017	Jul–Sep 2017	Okt–Dec 2017
Heimta
Net sales	87	91	97	94
EBITA	3	8	8	0
Klara
Net sales	81	81	81	79
EBITA	1	3	6	2

Segments

Jan–March	Vardaga		Nytida			Heimta		Klara		Unallocated items17	adjustments	Group	Group
SEK million	2018	2017	2018	2017	2018	2017	2018	2017	2018	2017	2018	2017	2018	2017
OPERATING INCOME
Net sales	551	564	717	690	121	87	78	81	0	0	0	0	1,467	1,422
Other operating income	4	5	2	3	2	0	0	0	2	3	0	0	10	11
Internal transactions	0	0	0	0	0	0	8	7	0	0	-8	-7	–	–
Total income from external custo mers	555	569	719	692	123	87	86	88	3	3	-8	-7	1,477	1,434
OPERATING EXPENSES
Consumables	-22	-23	-19	-21	-2	-1	0	0	-1	-1	0	0	-44	-45
Other external costs*	-111	-106	-148	-124	-46	-44	-34	-35	33	10	8	7	-297	-293
Personnel costs	-383	-404	-467	-464	-72	-39	-50	-52	-42	-38	0	0	-1,014	-997
Profit/loss from participations in Group companies	0	–	–	–	–	–	–	–	-4	–	–	–	-4	–
Other operating expenses	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Depreciation and impairment of tangible assets*	-4	-4	-8	-6	0	0	0	0	-1	-1	0	0	-14	-12
EBITA	36	33	77	77	3	3	2	1	-13	-27	0	0	105	86
EBITA margin, %	6.5	5.8	10.7	11.2	2.5	3.4	2.6	1.2					7.2	6.1
Items affecting comparability	–	–	–	–	–	–	–	–	4	24	–	–	4	24
Adjusted EBITA	36	33	77	77	3	3	2	1	-9	-3	0	0	109	110
Adjusted EBITA margin %	6.5	5.8	10.7	11.2	2.5	3.4	2.6	1.2					7.4	7.7
Amortisation of intangible fixed assets and customer contracts													-19	-14
Operating profit (EBIT)													86	73
Financial income													1	1
Financial expenses													-10	-29
Net financial items													-9	-28
Profit after net financial items													77	45
Profit before tax													77	45
Tax on profit for the period													-17	-11
LOSS FOR THE PERIOD													60	33
ASSETS	1,389	1,382	3,350	3,101	530	313	197	194	151	526	–	–	5,617	5,516

¹⁷ The column "Unallocated items" consists of centrally approved costs for general central administration, restructuring measures, acquisitions and costs for the IPO.

* Reversal of costs and depreciation on leasing of cars was adjusted for the comparative year and is recognised in this report under each segment instead of under unallocated items. See "Changes in segment reporting" under accounting policies for more information.

Note 4 Income

Jan–March	Vardaga		Nytida		Heimta		Klara		Group
SEK million	2018	2017	2018	2017	2018	2017	2018	2017	2018	2017
Own Management	270	246	595	556	121	87	0	0	986	889
Contract Management	281	318	122	134	0	0	0	0	403	452
Staffing	0	0	0	0	0	0	78	81	78	81
Total	551	564	717	690	121	87	78	81	1,467	1,422

Note 5 Acquisitions

Ambea concluded the following acquisitions during the quarter:

• PR Vård AB
• Arona Omsorger

The transferred consideration (purchase price) for the other acquisitions consisted of cash and estimated contingent consideration and amounted to SEK 37 million. The acquisitions gave rise to goodwill of SEK 24 million in the form of a difference between the consideration transferred and the fair value of the acquired net assets.The goodwill relates mainly to synergy effects in the form of cooperation gains within administration. The goodwill is not expected to be tax deductible. In the period up to 31 March 2018, the acquired companies contributed SEK 8 million to consolidated net sales and SEK 1 million to consolidated EBITA.

Brief disclosures concerning other acquisitions are provided below:

PR Vård AB

On 2 January, Ambea's Klara business area acquired PR Vård AB (Elevhälsan). The business area is specialised in staffing solu-tions for school health services in elementary and high schools. The company conducts operations throughout Sweden, with a strong position in Stockholm, Uppsala and Östergötland. In 2016, sales were about SEK 22 million. The acquisition was consolidated in Ambea's accounts as of 2 January 2018.

Arona Omsorger

On 28 February, Ambea's Nytida business area acquired Arona Omsorger, which consists of two legal entities, Trollglim och Vittergull AB and R.A.L. Fastighetsförvaltning AB. Arona Omsorger comprises a group home with a total of seven beds and day services for 12 people focusing on animal care and operations are based around Trosa and Vagnhärad in Sweden. In 2016, sales amounted to about SEK 12 million. The acquisition was consolidated in Ambea's accounts as of 28 January 2018.

Net assets of acquired companies on the date of acquisition

SEK million	Acquisitions	Fair value recognised in the Group
Tangible assets	8	8
Intangible assets	–	1
Accounts receivable and other receivables	4	4
Cash and cash equivalents	10	10
Non-current interest-bearing liabilities	-4	-4
Deferred tax liability	0	-1
Accounts payable and other liabilities	-5	-5
Net identifiable assets and liabilities	13	13
Group goodwill		24
Total consideration		37
Cash (acquired)		-10
Net cash outflow		27
Earn-out paid in respect of previous years' acquisitions		26
Total acquisitions		53

Note 6 Fair value of financial instruments in the measurement hierarchy

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

Level 1 – Listed prices (unadjusted) on active markets for identical assets or liabilities. This level includes eligible treasury bills, bonds and other interest-bearing securities. Re-measurement is recognised in Financial items.

Level 2 – Other 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 net current assets or Other current liabilities.

Level 3 – Data for assets or liabilities that are not based on observable market data.

Derivative instruments are measured in accordance with level 2 of the measurement hierarchy. Ambea has hedged 66 per cent of its interest-rate exposure to financing by purchasing interest-rate caps. The interest-rate caps are recognised at fair value and the impact on profit/loss is recognised in net financial items. The hedges were entered into in February 2016 and expire in January 2019. The change in fair value applying to the interest-rate caps is recognised in profit or loss and SEK 0 million was charged against net financial items for the quarter. The value of the derivatives amounted to SEK 0 million as per 31 March 2018. Ambea uses the standard report of issuing banks for the market valuation of purchased interest-rate caps. The valuation is based on the bank's standard pricing model and method. The valuation is based on the bank's average price.

Contingent considerations are measured in accordance with level 3 of the measurement hierarchy. Material non-observable input data consists primarily of forecast sales.

Consolidated assets and liabilities measured at fair value

SEK million	31 March 2018	31 March 2017	31 Dec 2017
Interest rate derivatives	0	1	0
Contingent consideration	-4	-73	-29

The change in contingent consideration of SEK 25 million in relation to 31 December 2017 consists of regulation related to TBO, which was acquired in 2017, and currency effects.

Note 7 Pledged assets and contingent liabilities

SEK million	31 March 2018	31 March 2017	31 Dec 2017
Pledged shares	–	0	–
Leased assets	85	66	74
Chattel mortgages	13	37	13
Real estate mortgages	23	14	23
Factoring	2	2	2
Total pledged assets	123	119	112

Contingent liabilities

The Group is sometimes involved in lawsuits and legal proceedings that are related to day-to-day business activities. The claims relate to, but are not limited to, the Group's business practices, personnel matters and tax issues. With respect to matters that do not require any provisions, the Group, based on information that is currently available, is of the opinion that these will not result in any significantly negative effects on the Group's financial results.

Note 8 Reconciliation with IFRS financial statements

SEK million	2018	2017 Jan–March Jan–March Rolling 12 months	2017/2018	2017 Jan–Dec
Growth/Acquired growth
Growth in net sales (%)	3	19	1	9
Acquired growth (%)	8	18	7	10
Of which, organic growth (%)	-5	1	-6	0
Operating margin (EBIT)
Net sales	1,467	1,422	5,861	5,816
Operating profit (EBIT)	86	73	416	402
Operating margin, EBIT (%)	5.9	5.1	7.1	6.9
EBITA and adjusted EBITA
Operating profit (EBIT)	86	73	416	402
Amortisation and impairment of intangible assets	19	14	64	59
EBITA	105	86	480	461
Items affecting comparability	4	24	18	38
Adjusted EBITA	109	110	497	498
Net sales	1,467	1,422	5,861	5,816
EBITA margin (%)	7.2	6.1	8.2	7.9
Adjusted EBITA margin (%)	7.4	7.7	8.5	8.6
EBITDA and adjusted EBITDA
Operating profit (EBIT)	86	73	416	402
Depreciation, amortisation and impairment of tangible and intangible assets	32	25	117	110
EBITDA	118	98	533	512
Items affecting comparability	4	24	18	38
Adjusted EBITDA	122	122	551	550
Net sales	1,467	1,422	5,861	5,816
EBITDA margin	8.0	6.9	9.1	8.8
Adjusted EBITDA margin	8.3	8.6	9.4	9.5

Note 8 Reconciliation with IFRS financial statements – continuation

SEK million	2018 Jan–March	2017 Jan–March	2017/2018 Rolling 12 months	2017 Jan–Dec
Items affecting comparability
Reversal of received damages Norway	–	–	-17	-17
– of which compensation included in other operating income	–	–	-17	-17
Reversal of restructuring and acquisition-related costs	–	1	–	1
– of which, costs included in the profit/loss row other external costs	–	1	–	1
– of which, costs included in the profit/loss row personnel costs	–	0	–	0
Reversal of income and costs for discontinuation of an entire segment	4	-2	28	22
EKB
– of which income	–	0	0	0
– of which, costs included in the profit/loss row other external costs	–	-2	-1	-3
– of which, costs included in the profit/loss row personnel costs	–	0	0	0
– of which, costs included in the profit/loss row depreciation, amortisation and impairment of tangible and intangible assets	–	0	0	0
– of which, costs included in the profit/loss row other operating expenses	–	0	0	0
	–	-2	-1	-3
Personal assistance
– of which income	–	0	-66	-66
– of which, costs included in the profit/loss row other external costs	–	0	5	5
– of which, costs included in the profit/loss row personnel costs	–	0	63	63
– of which, profit or loss from participations in Group companies	4	0	27	23
	4	0	29	25
Reversal of costs attributable to IPO	–	25	7	32
– of which, costs included in the profit/loss row other external costs	–	25	4	32
– of which, costs included in the profit/loss row personnel costs	–	0	2	0
– of which, costs included in the profit/loss row depreciation, amortisation and impairment of tangible and intangible assets	–	0	–	0
Items affecting comparability	4	24	18	38
Operating cash flow
EBITDA	118	98	533	512
Adjustment for non-cash items	4	–	2	-2
Cash flow from investing activities excl. acquisition and sales of subsidiaries	-5	-7	-8	-10
Operating cash flow before changes in working capital	117	91	526	500
Change in working capital	-6	-4	-43	-41
Operating cash flow after changes in working capital	111	87	483	459

Note 8 Reconciliation with IFRS financial statements – continuation

SEK million	2018	2017 Jan–March Jan–March Rolling 12 months	2017/2018	2017 Jan–Dec
Cash conversion (%)
Operating cash flow after changes in working capital	111	87	483	459
Adjustment for cash flow from investing activities related to increased capacity/growth	5	–	12	7
Operating cash flow excluding cash flow from investments in increased capacity/growth	116	87	495	465
EBITDA	118	98	533	512
Cash conversion (%)	98.3	88.7	92.9	90.8

SEK million	31 March 2018	31 March 2017	31 Dec 2017
Net debt, Net debt/Adjusted EBITDA, RTM
Non-current interest-bearing liabilities	367	2,141	710
Current interest-bearing liabilities	1,756	286	1,392
Less cash and cash equivalents	-77	-427	-87
Net debt	2,046	1,999	2,015
Rolling adjusted EBITDA	551	541	551
Net debt/Rolling adjusted EBITDA (ratio)	3.7	3.7	3.7
Debt/equity ratio
Non-current interest-bearing liabilities	367	2,141	710
Current interest-bearing liabilities	1,756	286	1,392
Total interest-bearing liabilities	2,123	2,426	2,102
Total equity	2,544	2,095	2,480
Debt/equity ratio	0.8	1.2	0.8
Equity/assets ratio
Total equity	2,544	2,101	2,480
Total assets	5,609	5,516	5,567
Equity/assets ratio (%)	45.4	38.1	44.5

Return on equity	2018	2017	2017/2018	2017
SEK million	Jan–March		Jan–March Rolling 12 months	Jan–Dec
Opening equity attributable to shareholders of the Parent Company	2,480	2,067	2,101	2,067
Closing equity attributable to shareholders of the Parent Company	2,544	2,101	2,544	2,480
Average equity attributable to shareholders of the Parent Company	2,512	2,084	2,323	2,274
Profit after tax	60	33	252	226
Return on equity (%)	2.4	1.6	10.9	9.9

Note 9 Definitions and purpose

Growth (%)	Growth consists of the increase in sales in relation to the period of comparison	This key figure is used to follow up the compa ny's sales increase
	The period's increase in net sales/Net sales in the period of comparison
Acquired growth (%)	The period's increase in net sales from acqui sitions/Net sales in the period of comparison	This key figure is used to follow up the propor tion of the company's sales increase that was generated through acquisitions
Organic growth (%)	The period's increase in net sales excluding acquisitions/Net sales in the period of com parison	This key figure is used when analysing under lying sales growth driven by comparable units between different periods
Operating profit (EBIT)	Profit for the period before financial items and taxes Total operating income – Operating expenses	This key figure is used to follow up the compa ny's profit generated by operating activities. The key figure enables comparisons of profita
EBITA	Operating profit before amortisation and impairment of intangible assets	bility between companies/industries The key figure used to follow up the compa ny's profit generated by operating activities. The figure enables comparisons of profitability
	Operating profit (EBIT) + Amortisation and impairment of intangible assets	between companies/industries
Adjustments	Items related to events in the company's operations that impact comparability with profit during other periods. Includes:	The key figure Adjustments of items affec ting comparability is used to achieve a fair comparison of the underlying development of
	- Transaction expenses attributable to major acquisitions	business operations
	- Major reorganisations
	- Costs for preparing the company for the IPO
Adjusted EBITA	Operating profit before amortisation and impairment of intangible assets adjusted for items from events in the company's ope rations that affect comparisons with profit during other periods	The key figure is used to follow up the company's profit generated by operating activities in order to obtain a fair comparison of the underlying development of business operations. The key figure enables compa
	EBITA + Adjustments	risons of profitability between companies/ industries
EBITDA	Operating profit before depreciation, amor tisation and impairment of intangible and tangible assets	The key figure used to follow up the compa ny's profit generated by operating activities. The key figure enables comparisons of profi
	Operating profit (EBIT) + Depreciation, amor tisation and impairment of intangible and tangible assets	tability between companies/industries
Adjusted EBITDA	Operating profit before depreciation/amor tisation and impairment of intangible and tangible assets adjusted for items from events in the company's operations that affect comparisons with profit during other periods	The key figure used to follow up the compa ny's profit generated by operating activities with a fair comparison of the underlying development of the business operations. The key figure enables comparisons of profitabili ty between companies/industries
	EBITDA + Adjustments
Operating margin (%)	Operating profit as a percentage of net sales.	The key figure is used to follow up the per
	Operating profit (EBIT)/Net sales	centage of net sales from operations that remains to cover interest payments and tax and to generate a profit after the company's costs have been paid

Nyckeltal	Definition och beräkning	Syfte
Operating cash flow	Total cash flow from operating activities ex-cluding tax, net financial items and items affecting comparability, as well as cash flow from investing activities excluding acquisi tions and divestments of operations	The key figure shows cash flow from the company's operations, excluding company acquisitions, company divestments, funding, tax and items affecting comparability and is used to follow up whether the company is
	Adjusted EBITDA + Changes in working capi tal + Cash flow from investing activities excl. acquisitions and divestments of subsidiaries	able to generate a sufficiently positive cash flow to maintain and expand its operations
Free cash flow	Total cash flow from operating activities and cash flow from investing activities excluding acquisitions and divestments of operations	This key figure shows cash flow from ope rating activities including cash flow from investing activities excluding acquisitions
	Cash flow from operating activities + Cash flow from investing activities excluding ac quisition and sales of subsidiaries	and divestments of operations and is used because it is a relevant measure for investors to be able to understand the Group's cash flow from operating activities
Cash conversion (%)	Cash conversion as a percentage is defined as operating cash flow divided by EBITDA	The key figure used as an efficiency measure of the proportion of a company's profit that is
	Operating cash flow/EBITDA	converted to cash
Net debt	The Group's interest-bearing liabilities exclu ding pension provisions adjusted for cash and cash equivalents	This key figure is a measure of the company's debt/equity ratio and is used by the company to assess its capacity to meet its financial
	Interest-bearing liabilities – cash and cash equivalents	commitments
Net debt/Rolling adjusted EBITDA	Net debt/Adjusted EBITDA is a measure of the debt/equity ratio defined as the closing balance for net debt in relation to rolling adjusted EBITDA.	The key figure used to monitor the level of the company's indebtedness to ensure that financial covenants are met
	Net debt/Rolling adjusted EBITDA
Debt/equity ratio	The debt/equity ratio shows a company's financial capacity	The key figure is used to monitor the propor tion of equity and debt that is used to finan
	Interest-bearing liabilities/Equity	ce various parts of a company's operations
Equity/assets ratio (%)	The equity/assets ratio is used to show the proportion of assets that is financed by equity	This key figure shows the percentage of the balance sheet total has been financed with equity and enables an analysis of the
	Equity/Balance sheet total	company's long-term financial strength and ability to withstand losses
Return on equity (%)	The return on equity shows the company's return on the capital provided by the owners	The key figure used to show the returns gene rated on the capital that shareholders have
	Profit for the period/Equity (average equity at the beginning and end of the period)	invested in the company

Summary report on quality in the first quarter 2018

• Ambea nominated for HBI Business Model Innovation Awards for Ambea's integration project and VR project.
• Ambeas Chair appointed best Swedish and Nordic Chair of the Year
• Nytida Ingelstad receives Top-class Care award.
• Lower percentage of serious non-compliances compared with the preceding quarter: degree of seriousness 3–0.46 per cent compared with 0.57 per cent for the fourth quarter. Degree of seriousness 4–0.02 per cent compared with 0.09 per cent for the fourth quar-ter.
• One Lex Maria report for Nytida and one Lex Maria report for Vardaga.
• One report for an individual complaint in Nytida.
• The Swedish Health and Social Care Inspectorate (IVO) completed 14 supervisions/ inspections of Nytida operations for children and young people.

General information: ambea.com/quality-sustainability