Ambea — Earnings Release 2020

May 13, 2020

A strong quarter in a challenging time

First quarter January–March

• Net sales rose 12 per cent to SEK 2,811 million (2,516). Acquired growth was 13 per cent, the exchange rate effect had a -1 per cent impact on organic growth and organic growth was 0 per cent
• Operating profit (EBIT) was SEK 144 million (62)
• EBITA increased 92 per cent to SEK 173 million (90), corresponding to a margin of 6.2 per cent (3.6)
• Adjusted EBITA, excluding items affecting comparability, increased 28 per cent to SEK 187 million (147). The adjusted EBITA margin was 6.7 per cent (5.8)
• Profit for the period totalled SEK 62 million (9)
• Earnings per share were SEK 0.65 (0.12) before and SEK 0.65 (0.12) after dilution
• Cash conversion was 79.2 per cent (68.2)
• Free cash flow totalled SEK 148 million (34).

Significant events

• Ambea assesses that net sales and EBITA were impacted to a limited extent by COVID-19 during the quarter. During the second quarter, COVID-19 is expected to have a greater impact due to higher costs for personal protective equipment (PPE) and higher sickness absence rate. Combined with the lower rate of occupancy in elderly care in particular, COVID-19 is expected to have an adverse impact on sales of about 3 per cent and on earnings of approximately SEK 40–60 million during the second quarter
• In view of the growing uncertainty caused by the spread of COVID-19 and the subsequent economic impact, the Board of Ambea has decided to withdraw its proposal to the AGM for a dividend payment
• During the quarter, a restructuring programme was initiated in Norway. The expected savings effect on a full-year basis is SEK 30 million, gradually increasing from the second quarter of 2020. Items affecting comparability of SEK 14 million were charged to the quarter. Read more on page 7
• During the quarter, the acquisition of Vivamus A/S was completed. Read more on page 23
• After the end of the quarter, Benno Eliasson became new CFO.

Consolidated key figures

SEK million	2020 Jan–Mar	2019 Jan–Mar	∆ %	R12	2019 Jan–Dec
Net sales	2,811	2,516	12	11,335	11,040
EBITA*	173	90	92	734	650
Operating margin, EBITA (%)*	6.2	3.6		6.5	5.9
Adjusted EBITA*	187	147	28	830	788
Operating margin, adjusted EBITA (%)*	6.7	5.8		7.3	7.1
Operating profit, EBIT	144	62	132	607	525
Operating margin, EBIT (%)*	5.1	2.5		5.4	4.8
Profit after tax	62	9	589	267	215
Earnings per share before dilution, SEK	0.65	0.12	442	2.96	2.52
Earnings per share after dilution, SEK	0.65	0.12	442	2.96	2.51
Cash conversion (%)*	79.2	68.2		96.5	94.8
Free cash flow*	148	34	335	986	872

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

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

Comments from Fredrik Gren, President and CEO

A strong quarter in a challenging time

The fight against COVID-19 marked the latter part of the first quarter and the whole organisation has made a tremendous contribution to contain the spread. A challenging time, but Ambea was able to capitalise on the overall competence of our Scandinavian organisation. In our activities related to COVID-19, we have strived to stay one step ahead and used preventive measures to keep the virus out of our facilities and to limit its spread. The early introduction of visiting restrictions, support in routines and intensive work to ensure the supply of PPE were all important initiatives. But I would like to highlight the untiring commitment and skills of all of our employees who have been our greatest resource in combating this pandemic.

The financial impact of COVID-19 was limited during the quarter. Profitability was stronger year-on-year and we continue to prioritise measures to strengthen margins in the operations that were previously Aleris Omsorg and the opening of new Vardaga residential facilities.

In the first quarter, net sales amounted to SEK 2,811 million (2,516). Adjusted EBITA rose 28 per cent year-on-year to SEK 187 million (147).

During the quarter, net sales rose SEK 295 million, corresponding to 12 per cent, mainly attributable to the acquisition of Aleris Omsorg, which was finalised in the middle of January 2019. Organic growth was 0 per cent.

Adjusted EBITA rose 28 per cent to SEK 187 million, mainly attributable to acquisitions and synergy realisations. Over the past 12 months, Vardaga has opened 521 beds under own management, which impacts earnings in the short term but in the longer term offers both organic growth and higher profitability. Work progressed as planned during the quarter to strengthen margins by adopting Vardaga's business concept into the acquired Aleris Omsorg operations. Nytida's margin strengthened year-on-year due to synergy realisation and the effects of the structure programme that was completed in 2019 to phase out overlapping operations following the acquisition of Aleris Omsorg. Altiden was impacted by higher costs to strengthen the organisation ahead of future growth. During the quarter, Klara reported rising margins year-on-year, primarily driven by continued positive demand for subscription services for ambulatory care nurses.

In Stendi, work continued with the previously announced restructuring programme to strengthen margins by significantly reducing the number of local offices and strengthening central functions. The programme is progressing as planned and costs affecting comparability of SEK 14 million were charged to earnings in the quarter. This work will continue during the seasonally weak second quarter while we continue to focus on implementing our operative management model in Norway to ensure favourable long-term profitability. Our earlier assessment of restructuring costs totalling SEK 45 million stands firm together with estimated annual savings of SEK 30 million, expected towards the end of 2020.

During the quarter, Vardaga, opened two nursing homes with a total of 116 beds, and Nytida opened one group home with six beds. At the end of the quarter, the number of beds and placements in the pipeline was 2,181, corresponding to 25 per cent of the total number of beds and placements under own management.

The acquisition of Vivamus in Denmark was completed during the quarter. Vivamus provides residential care for people with disabilities and developed as planned during the first few months in the Group.

During the quarter, our net profit for management contracts amounted to annual sales of SEK 157 million, while no new announcements were made by municipalities to retake contracts.

We are carefully monitoring the status of COVID-19 and will continue to take measures to protect our care receivers and employees. Our assessment is that COVID-19 will have an adverse impact on sales in the second quarter of about 3 per cent and on earnings of approximately SEK 40–60 million. If we look beyond the next few quarters, our assessment is that demand for our services remains favourable.

Finally, I would like to thank all of our employees for the incredible work being carried out in this difficult situation. Together, we are performing a duty that is more important than ever – to offer people who need our support the best life possible.

Fredrik Gren

Group

First quarter

Net sales

Net sales rose 12 per cent to SEK 2,811 million (2,516). Acquired growth was 13 per cent, the exchange rate effect had a negative -1 per cent impact on organic growth and organic growth was 0 per cent year-on-year. Sales in the quarter were positively impacted by the leap year.

Net sales in Own Management amounted to SEK 2,085 million (1,803), up 16 per cent compared with the year-earlier period, due to acquisitions and start-up units.

Net sales in Contract Management amounted to SEK 666 million (634). The yearon-year sales growth was positively impacted by the start-up of previously won contracts. Excluding additional Contract Management operations, the acquisition of Aleris Omsorg increased sales in Contract Management by 10 per cent, corresponding to SEK 36 million year-on-year.

Net sales in Staffing declined 24 per cent to SEK 60 million (79).

Earnings

EBIT rose 132 per cent to SEK 144 million (62), representing a margin of 5.1 per cent (2.5).

EBITA rose 92 per cent to SEK 173 million (90). The EBITA margin was 6.2 per cent (3.6). EBITA for the quarter was impacted by items affecting comparability of SEK -14 million (-57), attributable to costs for the previously announced restructuring programme in Norway.

Adjusted EBITA for the quarter rose 28 per cent to SEK 187 million (147). Completed acquisitions and synergy realisations from acquisitions had a positive impact on earnings, while ongoing new-starts had a negative impact. The leap year had a positive impact on earnings. The effect of the spread of COVID-19 had a limited impact on earnings for the first quarter. The adjusted EBITA margin was 6.7 per cent (5.8).

Net financial items

During the quarter, net financial items amounted to SEK -64 million (-50). Net interest income was negatively impacted by currency effects of SEK 12 million and increased impact from IFRS 16 of SEK 6 million, but positively impacted by a decrease in interest expense of SEK 5 million. As a result of the coronavirus situation, demand for commercial papers has decreased and the company can see that commercial papers outstanding will be replaced by greater use of existing committed credit facilities, which will lead to higher financing costs.

Income tax

Tax expense for the period was SEK -18 million (-3), corresponding to an effective tax rate of 22 per cent (22).

Profit for the period

Profit for the period totalled SEK 62 million (9), corresponding to earnings per share of SEK 0.65 (0.12) before dilution and SEK 0.65 (0.12) after dilution.

Net sales by segment Jan–Mar 2020

Net sales by contract model Jan–Mar 2020

Cash flow

SEK million	2020 Jan–Mar	2019 Jan–Mar	R12	2019 Jan–Dec
Adjusted EBITDA	377	313	1,571	1,508
Adjustment for non-cash items	-8	17	-61	-35
Changes in working capital	-56	-105	64	15
Cash flow from investments in fixed assets	-27	-20	-118	-110
Operating cash flow, including investments increased capacity	285	205	1,457	1,377
Net financial items	-62	-47	-261	-248
Tax paid	-62	-67	-114	-119
Reversal of items affecting comparability	-14	-57	-96	-138
Free cash flow	148	34	986	872
Acquisition/disposal of shares and participations	-103	-2,592	-125	-2,614
Cash flow from financing activities	-5	2,805	-1,071	1,739
Other	1	-7	-6	-14
Cash flow during the period	38	241	-208	-6

Free cash flow for the period amounted to SEK 148 million (34). The year-on-year increase in free cash flow was due to stronger earnings and reduced tied-up working capital, partly due to calendar effects.

The year-on-year cash flow for the period decreased, impacted by the acquisition last year of Aleris Omsorg and related borrowing.

Financial position

	31 Mar 2020	31 Mar 2020 excl.	31 Mar 2019	31 Mar 2019 excl.	31 Dec 2019	31 Dec 2019 excl.
SEK million		IFRS 16		IFRS 16		IFRS 16
Net interest-bearing debt*	8,217	3,284	8,970	4,714	7,916	3,212
Rolling 12 months adjusted EBITDA*	1,571	831	795	636	1,508	796
Net debt/Rolling 12 months adjusted EBITDA	5.2	4.0	11.3	7.4	5.3	4.0

At 31 March 2020, net interest-bearing debt amounted to SEK 8,217 million (8,970) or 5.2 times 12 months adjusted EBITDA. The decrease in net debt was due to the repayment of part of the loan raised for the acquisition of Aleris Omsorg following the completion of the new share issue in the second quarter of 2019.

* Alternative performance measures. For reconciliation with IFRS financial statements, purpose and definition,

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

Vardaga

At Vardaga's just over 100 residential care facilities across Sweden, we provide elderly care where every day is as meaningful as the next. Every one of our nursing homes, short-term accommodation units, 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.

Quarter

Vardaga's net sales rose 14 per cent year-on-year to SEK 909 million (796).

Net sales in Own Management amounted to SEK 561 million (457), up 23 per cent due to the acquisition of Aleris Omsorg and to newly opened units.

Net sales in Contract Management amounted to SEK 348 million (339). The 3 per cent increase was due to a positive contribution from the start-up of new contracts. During the quarter, Vardaga's net profit on the allocation of new contacts amounted to SEK 157 million, while no new announcements were made by municipalities to retake contracts.

Adjusted EBITA declined 8 per cent to SEK 48 million (52). Costs for new start-ups had a negative impact. Efforts that are ongoing to close the margin gap in the acquired Aleris Omsorg had a positive impact.

The adjusted EBITA margin was 5.3 per cent (6.5). The margin decline was attributable to a higher number of start-ups under Own Management and to the acquisition of Aleris Omsorg.

EBITA margin for mature units decreased 0.6 percentage points, mainly attributable to the inclusion of previously acquired units from Aleris Omsorg in the population from the first quarter.

During the quarter, one home-care operation in Nacka was divested as part of a strategic review of the home-care segment. The divestment is not deemed to have any material impact on earnings.

Vardaga adjusted EBITA margin RTM** %

Mature units

SEK million	2020 Jan–Mar	2019 Jan–Mar	∆ %	R12	2019 Full-year
Net sales	909	796	14	3,606	3,494
Adjusted EBITA*	48	52	-8	203	207
Operating margin, adjusted EBITA (%)*	5.3	6.5		5.6	5.9
Operating margin, adjusted EBITA mature units (%)	9.8	10.4		11.4	12.4

* Alternative performance measures.

** Includes effects of IFRS 16 as of Q1 2019. For purpose and definition, see ambea.com/investor-relations/reports-and-presentations

Nytida

Nytida provides support and care for children, young people and adults with lifelong disabilities and psychosocial problems. We provide 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.

Quarter

Net sales rose 4 per cent to SEK 912 million (873).

Net sales in Own Management amounted to SEK 781 million (755), up 3 per cent. This growth was attributable to the acquisition of Aleris Omsorg and to start-up units.

Net sales in Contract Management amounted to SEK 131 million (118). The 11 per cent increase was due to a positive contribution from the start-up of previously won contracts.

Adjusted EBITA rose 25 per cent to SEK 129 million (103). Earnings were positively impacted by the effects of synergy-realisation and the programme implemented in 2019 aimed at optimising overlapping capacity resulting from the acquisition of Aleris Omsorg. During the quarter, the trend for mature units in Individual and Family made a positive contribution year-on-year.

The adjusted EBITA margin was 14.1 per cent (11.8).

SEK million	2020 Jan–Mar	2019 Jan–Mar	∆ %	R12	2019 Full-year
Net sales	912	873	4	3,703	3,664
Adjusted EBITA*	129	103	25	538	512
Operating margin, adjusted EBITA (%)*	14.1	11.8		14.5	14.0

* Alternative performance measures.

** Includes effects of IFRS 16 as of Q1 2019.

Stendi

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 provide personal assistance, elderly care and home care. We have about 5,000 employees and more than 400 units across Norway.

Quarter

Net sales rose 13 per cent to SEK 761 million (671). The increase was largely due to the acquisition of Aleris Omsorg. The currency effect on sales in comparable units had a negative impact of 4 per cent year-on-year.

Net sales in Own Management amounted to SEK 686 million (579), up 18 per cent. This growth was attributable to the acquisition of Aleris Omsorg.

Net sales in Contract Management amounted to SEK 75 million (92), where the lower sales were a result of contracts previously handed back in elderly care.

Adjusted EBITA amounted to SEK 13 million (-12). The improved performance was mainly the result of lower costs for temporary staff and higher staffing efficiency arising from ongoing work to introduce Ambea's operative management model.

During the quarter, work with the previously announced restructuring programme in Norway progressed as planned. The aim of the programme is to centralise support functions and strengthen local leadership. The programme is expected to achieve annual savings of about SEK 30 million, which will be realised gradually as of the second quarter of 2020. Items affecting comparability of SEK 14 million were charged to the quarter and total items affecting comparability are estimated at about SEK 45 million. The programme is expected to have full effect by the end of 2020.

The adjusted EBITA margin was 1.7 per cent (-1.8).

SEK million	2020 Jan–Mar	2019 Jan–Mar	∆ %	R12	2019 Full-year
Net sales	761	671	13	3,197	3,106
Adjusted EBITA*	13	-12	n.a.	106	80
Operating margin, adjusted EBITA (%)*	1.7	-1.8		3.3	2.6

* Alternative performance measures.

** Includes effects of IFRS 16 as of Q1 2019.

Altiden

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

Quarter

Net sales rose 74 per cent to SEK 169 million (97). The increase is attributable to acquisitions. The currency effect on sales in comparable units had a negative impact of 1 per cent year-on-year.

Net sales in Own Management amounted to SEK 57 million (12). The sales growth was attributable to acquisitions and higher rates of occupancy in new units.

Net sales in Contract Management amounted to SEK 112 million (85), with the increase attributable to the acquisition of Aleris Omsorg, which was finalised in the middle of January 2019.

Adjusted EBITA amounted to SEK -3 million (3). Adjusted EBITA was negatively impacted by higher costs to strengthen the organisation and a weak performance in home care services. Acquired units (Casablanca Bo & Ehrverv ApS and Vivamus A/S) developed as planned and had a positive impact on earnings.

The adjusted EBITA margin was -1.6 per cent (3.0).

During the quarter, the acquisition was completed of Vivamus A/S, which provides residential care for people with disabilities in the Copenhagen region.

	2020	2019	∆		2019
SEK million	Jan–Mar	Jan–Mar	%	R12	Full-year
Net sales	169	97	74	556	484
Adjusted EBITA*	-3	3	-194	-12	-8
Operating margin, adjusted EBITA (%)*	-1.6	3.0		-2.2	-1.6

* Alternative performance measures.

Klara

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 nurses and temporary doctors, nurses and other care workers, in Sweden.

Quarter

Net sales declined 24 per cent to SEK 60 million (79). The decrease was attributable to a negative trend in temporary staffing services to the private customer segment due to the introduction of VAT liability for sales in July 2019. The decline was partly offset by increased sales in Klara Team, which offers qualified on-call services on a subscription basis.

Adjusted EBITA was SEK 6 million (5), representing a margin of 10.0 per cent (6.3). The performance was positively impacted by Klara Team and the effects of previously undertaken efficiency measures.

Klara adjusted EBITA margin RTM**, %

SEK million	2020 Jan–Mar	2019 Jan–Mar	∆ %	R12	2019 Full-year
Net sales	60	79	-24	274	292
Adjusted EBITA*	6	5	20	26	25
Operating margin, adjusted EBITA (%)*	10.0	6.3		9.5	8.6

* Alternative performance measures.

** Includes effects of IFRS 16 as of Q1 2019.

Operational key figures

SEK million	2019 Q1	2019 Q2	2019 Q3	2019 Q4	2020 Q1
Ambea
Number of beds and placements operated under own management, on the
closing date	8,220	8,441	8,490	8,637	8,832
Number of beds and placements under own management (RTM)	249	424	490	562	600
Number of beds and placements under own management under construction, on the closing date	2,234	2,167	2,252	2,309	2,181
Net won/lost management contracts, annual volume SEK million*	7	5	-120	-28	157
Vardaga
Number of beds operated under own management, on the closing date	2,139	2,313	2,433	2,545	2,661
Number of beds under own management (RTM)	153	300	420	477	521
Number of beds under own management under construction, on the closing date	1,964	1,910	1,934	1,983	1,867
Net won/lost management contracts, annual volume SEK million*	107	0	-189	-36	157
Nytida
Number of beds and placements operated under own management, on the closing date	5,170	5,170	5,117	5,138	5,150
Number of beds and placements under own management (RTM)	93	114	62	77	71
Number of beds and placements under own management under construction, on the closing date	190	180	241	249	237
Net won/lost management contracts, annual volume SEK million*	1	5	69	8	0
Stendi
Number of beds operated under own management, on the closing date	881	923	905	868	871
Number of beds under own management (RTM)	3	5	3	3	3
Number of placements under own management under construction, on the closing date	3	0	0	0	0
Net won/lost management contracts, annual volume SEK million*	-101	0	0	0	0
Altiden
Number of beds and placements operated under own management, on the closing date	30	35	35	86	150
Number of beds under own management (RTM)	0	5	5	5	5
Number of beds and placements under own management under construction, on the closing date	77	77	77	77	77
Net won/lost management contracts, annual volume SEK million*	0	0	0	0	0

* Includes management contracts to be retaken.

Other events

Legal proceeding regarding social security costs for temporary staff in Norway

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

In the third quarter of 2019, the District Court pronounced its decision. Of the 24 parties involved in the legal proceeding, two were considered entitled to social security benefits for previously delivered services. Both the defendant and Ambea have appealed the judgement to the Court of Appeal.

Tax audit in Norway

The Norwegian Tax Administration had previously initiated an audit of Aleris Omsorg's operations' reporting of tax for temporary staff. During the quarter, the Tax Administration announced that the review had been concluded without any follow-up actions.

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). The reassessment was mainly related to input VAT on costs arising from the IPO in 2017. The company has appealed the Swedish Tax Agency's preliminary decision and is awaiting further assessment in the Administrative Court, which is why no provision has been made for the cost.

Legal dispute in Norway

During 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.

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

After the end of the quarter, the impact of the spread of COVID-19 has continued to affect the company's operations. During the second quarter, COVID-19 is expected to have a greater impact due to higher costs for personal protective equipment (PPE) and higher sickness absence rate. Combined with the lower rate of occupancy in elderly care in particular, COVID-19 is expected to have an adverse impact on sales of about 3 per cent and on earnings of approximately SEK 40–60 million during the second 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 certain years, Easter may fall in the first quarter and then impacts its profitability. Christmas and New Year affect the first and fourth quarters.

The company's personnel costs are similarly affected 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

The average number of full-time employees (FTEs) during the quarter was 14,161 (13,214), with the increase mainly due to acquisitions.

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 central to the annual strategy process, where specific risks in relation to the company's ability to achieve its financial targets and strategic ambitions are 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 48–49 of the 2019 Annual Report.

Key judgements and estimates

For information about key judgements and estimates in this interim report, refer to Note G32 in the company's 2019 Annual Report.

Other information

The company's auditors have not reviewed this report.

The Board of Directors' assurance

The Board of Directors and Chief Executive Officer 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, 12 May 2020

Lena Hofsberger Chair of the Board

Daniel Björklund	Anders Borg	Lars Gatenbeck
Liselott Kilaas	Gunilla Rudebjer	Mikael Stöhr
Patricia Briceño Employee representative	Charalampos Kalpakas Employee representative	Magnus Sällström Employee representative

Fredrik Gren President and CEO

Presentation of the first quarter of 2020

Ambea will hold a presentation for the financial market, with the possibility to participate by teleconference, at 10:00 a.m. CEST on Wednesday, 13 May 2020. 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 five minutes before the conference call's start time to register, or use the code: 1190474.

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

Jacob Persson, Head of Group Business Control & Investor Relations Telephone +46 (0)708 64 07 52

Forthcoming report occasions

Annual General Meeting	15 May 2020
Q2 interim report for 2020	19 August 2020
Q3 interim report for 2020	5 November 2020

Ambea is the leading private care company in Sweden, Norway and Denmark, with more than 900 units and approximately 26,000 employees. Within our group of companies, we provide residential facilities, support, education and social care staffing. 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. The company was founded in 1996, is headquartered in Solna and listed on Nasdaq Stockholm. www.ambea.se

Consolidated earnings in summary

SEK million	2020 Jan–Mar	2019 Jan–Mar	R12	2019 Jan–Dec
Operating income
Net sales	2,811	2,516	11,335	11,040
Other operating income	21	17	103	99
Total operating income	2,832	2,533	11,439	11,139
Operating expenses Consumables	-92	-92	-383	-383
Other external costs	-316	-375	-1,474	-1,532
Personnel costs	-2,062	-1,809	-8,103	-7,851
Depreciation, amortisation and impairment of fixed assets	-218	-195	-868	-845
Other operating expenses	-0	-0	-3	-3
Operating expenses	-2,688	-2,471	-10,832	-10,614
Operating profit	144	62	607	525
Financial income	0	11	1	12
Financial expenses	-64	-61	-264	-261
Net financial items	-64	-50	-262	-249
Profit after net financial items	80	12	345	276
Profit before tax	80	12	345	276
Tax on profit for the period	-18	-3	-77	-61
Profit for the period	62	9	267	215
Profit for the period attributable to shareholders of the Parent Company	62	9	267	215
Earnings per share before dilution, SEK	0.65	0.12	2.96	2.52
Earnings per share after dilution, SEK	0.65	0.12	2.96	2.51

Consolidated statement of comprehensive income in summary

SEK million	2020 Jan–Mar	2019 Jan–Mar	R12	2019 Jan–Dec
Profit for the period after tax	62	9	267	215
Other comprehensive income, items not transferable to profit or loss
Remeasurement of defined-benefit pension plans	–	–	-9	-9
Tax related to remeasurement of defined-benefit pension plans	–	–	2	2
Total items not transferable to profit or loss	–	–	-7	-7
Other comprehensive income, items transferable to profit or loss
Translation differences	-78	15	-106	-13
Hedging of net investments in foreign operations	44	-11	48	-7
Cash flow hedges	-9	0	-7	2
Hedging cost reserve	0	-1	-3	-4
Tax	-9	2	-9	2
Total items transferable to profit or loss	-52	5	-77	-19
Total other comprehensive income	-52	5	-84	-25
Total comprehensive income for the period	10	14	183	190
Comprehensive income for the period attributable to shareholders of the Parent Company	10	14	183	190

Earnings per share

	2020 Jan–Mar	2019 Jan–Mar	R12	2019 Jan–Dec
Profit for the period attributable to shareholders of the Parent Company, SEK million	62	9	267	215
Earnings per share before dilution Average number of shares, thousands Earnings per share before dilution, SEK	94,437 0.65	74,748 0.12	90,593 2.96	85,727 2.52
Earnings per share after dilution Average number of shares, thousands Earnings per share after dilution, SEK	94,599 0.65	74,928 0.12	90,733 2.96	85,837 2.51

Consolidated balance sheet in summary

SEK million	31 Mar 2020	31 Mar 2019	31 Dec 2019
Assets
Fixed assets
Goodwill	6,540	6,511	6,532
Customer contracts and customer relationships	572	668	607
Other intangible assets	24	23	24
Right-of-use assets	4,905	4,321	4,698
Tangible assets	263	226	251
Derivative instruments	0	3	3
Deferred tax assets	52	66	54
Non-current receivables	101	96	101
Total fixed assets	12,457	11,914	12,270
Current assets
Inventories	0	0	0
Accounts receivable	1,035	1,145	1,078
Other receivables	113	98	67
Prepaid expenses and accrued income	274	294	261
Cash and cash equivalents	88	297	52
Total current assets excluding assets held for sale	1,511	1,834	1,458
Assets held for sale	81	82	82
Total current assets	1,592	1,917	1,540
Total assets	14,048	13,831	13,810

Consolidated balance sheet in summary – continuation

SEK million	31 Mar 2020	31 Mar 2019	31 Dec 2019
Equity and liabilities
Equity
Share capital	2	2	2
Other capital contributions	6,165	4,965	6,165
Reserves	-69	8	-17
Retained earnings including profit or loss for the period	-2,052	-2,235	-2,114
Total equity attributable to shareholders of the Parent Company	4,046	2,739	4,036
Non-controlling interests	–	–	–
Total equity	4,046	2,739	4,036
Non-current liabilities
Non-current interest-bearing liabilities	1,442	2,193	961
Lease liabilities	4,374	3,665	4,170
Pension provisions	33	33	39
Other provisions	33	69	48
Deferred tax liabilities	167	173	173
Total non-current liabilities	6,050	6,133	5,390
Current liabilities
Current interest-bearing liabilities	–	1,200	–
Commercial papers	1,867	1,537	2,228
Lease liabilities	622	672	610
Accounts payable	237	260	266
Tax liabilities	23	56	53
Other non-interest-bearing liabilities	170	145	200
Accrued expenses and deferred income	1,034	1,089	1,027
Total current liabilities	3,953	4,959	4,384
Total equity and liabilities	14,048	13,831	13,810

Consolidated statement of changes in equity in summary

SEK million	2020 Jan–Mar	2019 Jan–Mar	2019 Jan–Dec
Opening balance	4,036	2,725	2,725
Comprehensive income	10	14	190
Transactions with shareholders Warrants issued	–	–	2
Share buybacks	–	–	-5
New share issue	–	–	1,215
Issue expenses	–	–	-15
Dividends	–	–	-74
Closing balance	4,046	2,739	4,036

Consolidated cash flow statement in summary

SEK million	2020 Jan–Mar	2019 Jan–Mar	R12	2019 Jan–Dec
Operating activities
Profit before tax	80	12	345	276
Adjustment for non-cash items	214	215	809	810
Cash flow from operating activities before working capital and tax	294	226	1,154	1,087
Tax paid	-62	-67	-114	-119
Cash flow from operating activities before changes in working capital	231	159	1,040	968
Cash flow from changes in working capital Change in operating receivables	-31	-69	108	70
Change in operating liabilities	-26	-37	-44	-55
Cash flow from operating activities	175	54	1,104	982
Investing activities
Investment in intangible assets	-2	-4	-5	-7
Investment in tangible assets	-25	-27	-113	-115
Divestment of tangible assets	0	11	1	11
Free cash flow	148	34	986	872
Acquisition and disposal of shares and participations	-103	-2,592	-125	-2,614
Other financial assets	-1	-6	1	-4
Cash flow from investing activities	-131	-2,619	-241	-2,729
Cash flow after investing activities	44	-2,565	863	-1,746
Financing activities New loans/Loans raised	720	4,936	4,696	8,911
Repayment of loan liabilities	-801	-1,105	-5,964	-6,221
Repayment of lease liability	-158	-135	-558	-581
Change in revolving credit facility	234	-891	-367	-1,492
New share issue	–	–	1,200	1,200
Premiums for warrants	–	–	0	2
Share buybacks	–	–	-5	-5
Dividends paid	–	–	-74	-74
Cash flow from financing activities	-5	2,805	-1,071	1,739
Cash flow during the period	38	240	-208	-6
Cash and cash equivalents on the opening date	52	62	297	62
Exchange rate differences in cash and cash equivalents	-2	-4	-1	-4
Cash and cash equivalents on the closing date	88	297	88	52

Parent Company income statement in summary

SEK million	2020 Jan–Mar	2019 Jan–Mar	R12	2019 Jan–Dec
Income Net sales	1	6	12	17
Total income	1	6	12	17
Operating expenses Other external costs	-2	-6	-12	-15
Personnel costs	-3	-5	-15	-16
Amortisation of intangible assets	-0	-0	-0	-0
Operating expenses	-6	-11	-27	-32
Operating loss	-5	-5	-15	-15
Financial items	-6	-24	-41	-59
Loss after financial items	-11	-29	-56	-74
Appropriations	–	–	199	199
Profit/loss before tax	-11	-29	143	124
Tax on profit for the period	–	–	-27	-27
Profit/loss for the period	-11	-29	116	98

Parent Company balance sheet in summary

SEK million	31 Mar 2020	31 Mar 2019	31 Dec 2019
Assets
Intangible assets
Software	1	1	1
Financial assets
Participations in Group companies	7,209	7,210	7,208
Derivative assets	3	5	3
Total fixed assets	7,213	7,216	7,213
Current assets
Receivables from Group companies	3,588	2,162	2,555
Other receivables	17	17	12
Prepaid expenses and accrued income	15	9	11
Cash and bank balances	0	0	0
Total current assets	3,620	2,188	2,579
Total assets	10,833	9,404	9,792
Equity and liabilities Share capital	2	2	2
Statutory reserve	0	0	0
Total restricted equity	3	2	2
Share premium reserve	1,404	201	1,403
Retained earnings	1,869	1,851	1,771
Profit/loss for the period	-11	-29	98
Total non-restricted equity	3,262	2,022	3,272
Total equity	3,264	2,024	3,274
Untaxed reserves	33	–	33
Non-current liabilities
Liabilities to credit institutions*	1,480	2,189	965
Total non-current liabilities	1,480	2,189	965
Current liabilities
Commercial papers	1,867	2,737	2,228
Accounts payable	1	1	1
Tax liabilities	21	0	20
Liabilities to Group companies*	4,156	2,440	3,253
Other liabilities	0	0	0
Accrued expenses and deferred income	11	11	17
Total current liabilities	6,057	5,191	5,520
Total equity and liabilities	10,833	9,404	9,792

* From the fourth quarter of 2019, the entire cash pool has been recognised as liability in the Parent Company. The Group's indebtedness has not been impacted. The comparative figures have been restated for comparability.

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.

New or revised IFRS standards from 2020

None of the new or revised standards or interpretations, which were applicable from 1 January 2020, had any material impact on the financial statements of the Group or the Parent Company. No new or revised standards were applied in advance.

Adjustment of value of participations in tenant-owner associations

Participations in tenant-owner associations were previously measured at cost. As of the fourth quarter of 2019, participations in tenant-owner associations have been measured at estimated fair value, for more information see the 2019 Annual Report. The comparative figures for the quarter were restated and impacted as follows: goodwill declined SEK 33 million, non-current receivables increased SEK 65 million, retained earnings increased SEK 18 million and deferred tax increased SEK 13 million.

Alternative performance measures

Last year, alternative performance measures were presented adjusted for the effects of the introduction of IFRS 16, to facilitate a comparison with 2018. As comparability exists between 2020 and 2019, no such adjusted measures are now presented, apart from Net debt/Rolling 12 months adjusted EBITDA, which pertains to the covenant for the revolving credit facility and the Group's EBITA and EBITDA.

As of the first quarter of 2020, disclosures are no longer provided for EBITDA margin, adjusted EBITDA margin, equity/assets ratio and return on equity. These alternative performance measures have been excluded as management does not use the measures in its follow-up and governance of operations. Management monitors operations at adjusted EBITA level, and for this reason items affecting comparability have been allocated, to the extent they can be derived from a specific division and operating segment. The comparative year has been restated.

NOTE 2 Segment information

Ambea's operations consist of the following segments:

Vardaga	Comprises elderly care in Sweden.
Nytida	Comprises care for people with functional disabilities in Sweden.
Stendi	Comprises support for children and youth, 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 nurses and temporary doctors and nurses in Sweden.

Note 2 Segment information – continuation

January–March 2020

						Unallocated	Group
SEK million	Vardaga	Nytida	Stendi	Altiden	Klara	items*	adjustments	Group
Operating income
Net sales	909	912	761	169	60	0	0	2,811
Other operating income	8	6	3	0	17	4	-17	21
Internal transactions	0	0	0	0	-17	0	17	0
Total income from external customers	917	917	764	169	60	4	0	2,832
EBITA	48	129	-1	-3	6	-6	0	173
EBITA margin, %	5.3	14.1	-0.1	-1.8	10.0	–	–	6.2
Items affecting comparability	–	–	14	–	–	0	–	14
Adjusted EBITA	48	129	13	-3	6	-6	0	187
Adjusted EBITA margin, %	5.3	14.1	1.8	-1.8	10.0	–	–	6.7
Amortisation of intangible assets								-29
Operating profit (EBIT)								144
Net financial items								-64
Profit after net financial items								80
Profit before tax								80
Tax on profit for the period								-18
Profit for the period								62
Assets	5,471	5,829	1,895	479	180	194	0	14,048

January–March 2019

						Unallocated	Group
SEK million	Vardaga	Nytida	Stendi	Altiden	Klara	items*	adjustments	Group
Operating income
Net sales	796	873	671	97	79	0	0	2,516
Other operating income	3	3	6	0	10	4	-10	16
Internal transactions	0	0	0	0	-10	0	10	0
Total income from external customers	800	876	677	97	79	4	0	2,533
EBITA	52	103	-19	1	5	-51	0	90
EBITA margin, %	6.5	11.8	-2.8	1.0	6.3	–	–	3.6
Items affecting comparability	–	–	7	2	–	48	–	57
Adjusted EBITA	52	103	-12	3	5	-3	0	147
Adjusted EBITA margin, %	6.5	11.8	-1.8	3.0	6.3	–	–	5.8
Amortisation of intangible assets								-29
Operating profit (EBIT)								62
Net financial items								-50
Profit after net financial items								12
Profit before tax								12
Tax on profit for the period								-3
Profit for the period								9
Assets	4,738	6,261	2034	183	181	434	0	13,831

* The column "Unallocated items" consists of centrally approved costs for general central administration, restructuring measures, acquisitions.

Note 3 Revenue from contracts with customers

Type of service delivery (January–March)

	Vardaga		Nytida		Stendi			Altiden		Klara		Group
SEK million	2020	2019	2020	2019	2020	2019	2020	2019	2020	2019	2020	2019
Own Management	561	457	781	755	686	579	57	12	–	–	2,085	1,803
Contract Management	348	339	131	118	75	92	112	85	–	–	666	634
Staffing	–	–	–	–	–	–	–	–	60	79	60	79
Total	909	796	912	873	761	671	169	97	60	79	2,811	2,516

NOTE 4 Items affecting comparability

SEK million	2020 Jan–Mar	2019 Jan–Mar	R12	2019 Jan–Dec
Restructuring and acquisition-related items	-14	-57	-96	-138
Total items affecting comparability	-14	-57	-96	-138

Items affecting comparability in 2020 relate to the restructuring programme in Norway as announced in the year-end report for 2019. Items affecting comparability in 2019 related to integration and synergy-realisation costs in connection with the acquisition of Aleris Omsorg, and to the restructuring of Nytida

Note 5 Business combinations

During the year, Ambea completed the acquisition of Vivamus A/S. The consideration (purchase price) transferred for the acquisition comprised cash in the amount of SEK 148 million. This acquisition generated goodwill of SEK 115 million, corresponding to the difference between the consideration transferred and the acquired net assets identified. The goodwill mainly relates to a stronger market position and operative and

Effect on financial position

SEK million	2019
Identified intangible assets	–
Identified net assets excl. intangible assets	33
Group goodwill	115
Total purchase consideration (price of shares)	148
Net impact on cash	101

administrative synergies. The acquisition analysis is preliminary. Since the acquisition date, Vivamus has contributed SEK 28 million to net sales, and SEK 6 million to profit before tax. If the acquisition had taken place on 1 January 2020, the company would have contributed SEK 30 million to net sales and SEK 6 million to profit before tax.

Distribution of net assets on the date of acquisition

SEK million	2020
Fixed assets	3
Right-of-use assets	57
Accounts receivable and other receivables	11
Cash and cash equivalents	47
Non-current liabilities and provisions	–
Lease liabilities	57
Accounts payable and other liabilities	29
Identified net assets	33

Note 5 Business combinations – continuation

Acquisitions and divestments during the year
Date	Acquisitions	Divestments	Operations	Segments	Annual sales
8 Jan 2020	Vivamus AS		Residential care for people with disabilities.	Altiden	DKK 80 million
1 Feb 2020		Nacka Hemtjänst	Home-care operations in Nacka (transfer of operations)	Vardaga	SEK 25 million

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

				Classification in the fair value hierarchy
				1			2			3
SEK million	31 Mar 2020	31 Mar 2019	31 Dec 2019	31 Mar 2020	31 Mar 2019	31 Dec 2019	31 Mar 2020	31 Mar 2019	31 Dec 2019	31 Mar 2020	31 Mar 2019	31 Dec 2019
Assets Interest-rate derivatives	0	3	3	–	–	–	0	3	3	–	–	–
Liabilities Interest-rate derivatives Earn-out	9 –	– –	– 1	– –	– –	– –	9 –	– –	– –	– –	– –	– 1

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 under 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.

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 maturities of three years. In total, 60 per cent of the company's interest-rate risk is hedged through interest-rate derivatives on 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 is recognised in other comprehensive income and SEK 9 million was charged against other comprehensive income for the quarter. Ambea uses the standard report of issuing banks for the market valuation of purchased interest-rate caps and interest-rate swaps. The measurement is based on the bank's standard pricing model and method. The measurement is based on the bank's average price.

NOTE 7 Pledged assets and contingent liabilities

SEK million	31 Mar 2020	31 Mar 2019	31 Dec 2019
Leased assets	60	84	66
Chattel mortgages	7	10	7
Real estate mortgages	9	9	9
Total pledged assets	76	103	82

* For distribution by line in profit or loss, see ambea.com/investor-relations/reports-and-presentations

NOTE 8 Reconciliation with financial statements

SEK million	2020 Jan–Mar	2019 Jan–Mar	R12	2019 Jan–Dec
Growth/Acquired growth
Growth in net sales (%)	12	72	3	82
Of which acquired growth (%)	13	70	3	81
Of which currency effect (%)	-1	0	-1	0
Of which organic growth (%)	0	2	-0	1
Operating margin (EBIT) Net sales	2,811	2,516	11,335	11,040
Operating profit (EBIT)	144	62	607	525
Operating margin, EBIT (%)	5.1	2.5	5.4	4.8
EBITA and adjusted EBITA Operating profit (EBIT)	144	62	607	525
Amortisation and impairment of intangible assets	29	28	127	125
EBITA	173	90	734	650
Items affecting comparability	14	57	96	138
Adjusted EBITA	187	147	830	788
Net sales	2,811	2,516	11,335	11,040
EBITA margin (%) Adjusted EBITA margin (%)	6.2 6.7	3.6 5.8	6.5 7.3	5.9 7.1
EBITDA and adjusted EBITDA
Operating profit (EBIT)	144	62	607	525
Depreciation, amortisation and impairment of tangible and intangible assets	218	195	868	845
EBITDA	362	257	1,475	1,370
Items affecting comparability	14	57	96	138
Adjusted EBITDA	376	314	1,571	1,508
EBITDA and adjusted EBITDA excluding IFRS 16
Operating profit (EBIT)	144	62	607	525
Depreciation, amortisation and impairment of tangible and intangible assets	218	195	868	845
Additional: Rental expenses	-188	-159	-740	-711
Net effects of IFRS 16 on EBITDA EBITDA excluding effects of IFRS 16	-188 174	-159 98	-740 735	-711 659
Items affecting comparability	14	57	96	138
Adjusted EBITDA excl. IFRS 16	188	154	831	796
EBITA and adjusted EBITA excluding IFRS 16
Operating profit (EBIT)	144	62	607	525
Amortisation and impairment of intangible assets EBITA	29 173	28 90	127 734	125 650
Less, amortisation IFRS 16	163	140	641	-618
Additional: Rental expenses	-188	-159	-740	711
Net effects of IFRS 16 on EBITA	-25	-19	-99	-94
EBITA excluding effects of IFRS 16	148	71	634	556
Items affecting comparability	14	57	96	138
Adjusted EBITA excluding IFRS 16	162	128	731	694
EBITA margin excluding IFRS 16 Adjusted EBITA margin excluding IFRS 16	5.3 5.8	2.8 5.1	5.6 6.4	5 6.3

NOTE 8 Reconciliation with financial statements – continuation

SEK million	2020 Jan–Mar	2019 Jan–Mar	R12	2019 Jan–Dec
Operating cash flow
Adjusted EBITDA	376	314	1,571	1,508
Adjustment for non-cash items	-8	17	-61	-36
Cash flow from investing activities excl. acquisitions and divestments of subsidiaries	-27	-20	-118	-110
Adjustment for cash flow from investing activities related to increased capacity/growth	14	8	60	54
Changes in working capital	-56	-105	64	15
Operating cash flow	298	214	1,517	1,430
Cash conversion (%) Operating cash flow	298	214	1,517	1,430
Adjusted EBITDA	376	314	1,571	1,508
Cash conversion (%)	79.2	68.2	96.5	94.8
Items affecting comparability
Reversal of restructuring and acquisition-related costs
– of which costs included in the line item of other external costs	1	33	51	81
– of which costs included in the line item of personnel costs	13	22	41	52
– of which costs included in the line item of depreciation, amortisation and impairment	0	1	4	4
Total restructuring and acquisition-related costs	14	57	96	138
Total items affecting comparability	14	57	96	138

SEK million	31 Mar 2020	31 Mar 2019	31 Dec 2019
Net debt, Net debt/Adjusted EBITDA, RTM
Non-current interest-bearing liabilities	5,817	5,858	5,131
Current interest-bearing liabilities	2,489	3,409	2,838
Less: cash and cash equivalents	-88	-297	-52
Net debt	8,217	8,970	7,917
Adjusted EBITDA RTM	1,571	795	1,508
Net debt/Adjusted EBITDA, RTM (times)	5.2	11.3	5.3
Net debt, Net debt/Adjusted EBITDA, RTM excl. effects of IFRS 16 Non-current interest-bearing liabilities	5,817	5,858	5,131
Less: non-current lease liabilities pertaining to properties recognised on the lease liability line	-4,346	-3,629	-4,134
Current interest-bearing liabilities	2,489	3,409	2,838
Less: current lease liabilities pertaining to properties recognised on the lease liability line	-588	-626	-571
Less: cash and cash equivalents	-88	-297	-52
Net debt excluding effects of IFRS 16	3,284	4,715	3,213
Adjusted EBITDA RTM excluding effects of IFRS 16	831	636	796
Net debt/Adjusted EBITDA, RTM (times) excluding effects of IFRS 16	4.0	7.4	4.0

Quality management in the fourth quarter of 2020

Actions linked to the COVID-19 pandemic

Our society has been marked by COVID-19 and Ambea's role and important contribution to society has become increasingly clear during the pandemic. The aim of our work has always been stay one step ahead and introduce preventive measures. Adopt clear and established procedures for how employees should handle various situations and a close and solution-oriented dialogue with our clients and authorities.

• Ambea set up a central crisis management team already at the end of February. Through our contacts with care companies across Europe and the US we received an early insight into the challenges facing us, which enabled us to take action.
• Work was based on the recommendations of the authorities, but in several instances Ambea acted before the authorities and clients had time to present their guidelines.
• One example is the ban on visits which Ambea introduced on 11 March at all nursing homes and other facilities with risk groups. In Sweden, the government introduced a national ban on visits to nursing homes on 1 April. In Norway on 13 March and in Denmark on 18 March.
• Ambea's facilities are used to working with hygiene practices, handling gastric and seasonal influenza or working with palliative care. So we have used the basic skills within the organisation and developed these work processes and procedures.
• Communication and leadership have been key factors in creating a sense of security for care receivers, relatives and employees. We quickly established a routine to contact all relatives if a residential facility reported a confirmed case.
• We have benefited from our size and geographic spread in sharing knowledge, as countries and regions are in different stages of the pandemic. Several times a week, business managers and medical employees have taken part in webinars to learn the latest information and to meet experts for advice

* The Quality and HR Flash is Ambea's tool for monitoring the Group's quality and human resources management. It is sent out to all operations every month.

and knowledge transfer. Ambea's intranet has been a knowledge hub and the channel is accessible to all employees.

• A particular focus was on PPE and our established partnerships and contact network has enabled us to continuously provide prioritised operations with adequate PPE.

Quality and HR Flash

• In the first quarter, Ambea's Quality and HR Flash score* fell from 6.94 to 6.86 in Vardaga, while increasing slightly from 6.94 to 6.97 in Nytida (max. 10). The key figures for HR were given a greater value in the Q1 calculation, which meant the index value was negatively impacted by short sickness absence that increased during the period due to COVID-19.
• Quality and HR Flash was also carried out in Stendi and Altiden for the second time according to Ambea's structure, at both operational and division level. Stendi's index fell from 6.25 in the fourth quarter to 6.17 in the first quarter. Altiden's index also fell, from 7.6 to 7.0 in the first quarter. Altiden has adjusted the target scale used in the index calculation, which led to lower results. Like Sweden, the rise in sickness absence due to COVID-19 had a negative impact on Stendi's and Altiden's index.

Awards and distinctions

Most Nytida operations in Skåne were LGBT certified during the quarter by the Swedish Federation for Lesbian, Gay, Bisexual, Transgender, Queer and Intersex rights (RFSL) The certification means Nyt-

ida now has a number of operations with excellence in this field and that employees gained new tools and knowledge to ensure good interaction with young people in our operations.

During the quarter, Vardaga received a quality award from the Municipality of Täby. The award aims to stimulate and reward work focused on quality in relation to the elderly in Täby. This is the fourth consecutive year that Vardaga's operations have received the award.

The quarter in figures

• The share of serious deviations in the first quarter (grade 4) in Vardaga and Nytida was 0.07 per cent, which is unchanged compared with the fourth quarter of 2019 (0.08). No serious deviations were reported in the first quarter for Stendi and Altiden.
• Five Lex Sarah reports were lodged, four by Nytida and one by Vardaga. The IVO has issued two decisions and the cases were closed without any remarks. The IVO has not issued any decisions on the other cases. In Vardaga, three Lex Maria reports were lodged, one was closed without any remarks and no decisions have been issued for the other two cases. In the preceding quarter, five Lex Sarah reports were submitted and two Lex Maria reports, all decisions have been issued without any remarks.
• Individual complaints investigated by the IVO: Four individual complaints were registered in relation to Vardaga's opera-

tions, but the IVO has not yet made a decision on any of the cases. One complaint was registered in regard to Nytida's operations, but no decisions have been issued. Five different complaints were lodged in the preceding quarter, but no decisions have been issued.

• Inspections: The IVO conducted 29 inspections of Nytida's operations, decisions have been issued in 11 cases with remarks from IVO in two of these. For Vardaga, seven inspections were conducted during the quarter, decisions have been issued in two of these without any remarks.
• In Stendi, the authorities conducted five inspections in children care with minor remarks in two of these. In Altiden, one inspection was conducted by the patient safety board, which resulted in neither remarks nor observations.