Ambea — Interim / Quarterly Report 2019

Nov 8, 2019

Continued earnings growth and improvements in Norway

Third quarter July-September

• Net sales rose 84 per cent to SEK 2,843 million (1,541). Acquired growth was 83 per cent and organic growth was 1.5 per cent
• Operating profit (EBIT) rose 47 per cent to SEK 270 million (184)
• EBITA increased 45 per cent to SEK 297 million (205), corresponding to a margin of 10.4 per cent (13.3)
• Adjusted EBITA, excluding items affecting comparability, increased 52 per cent to SEK 312 million (205). The adjusted EBITA margin was 11.0 per cent (13.3)
• During the quarter, items affecting comparability amounted to SEK -15 million (0), attributable to integration and synergyrealisation costs in connection with the acquisition of Aleris Omsorg
• Profit for the period totalled SEK 157 million (128)
• Earnings per share were SEK 1.66 (1.71) before and SEK 1.66 (1.71) after dilution
• Operating cash flow was SEK 318 million (79)
• Free cash flow totalled SEK 190 million (54)

First nine months January-September

• Net sales rose 82 per cent to SEK 8,237 million (4,526). Acquired growth was 81 per cent and organic growth was 1 per cent

• Operating profit (EBIT) rose 14 per cent to SEK 415 million (365)
• EBITA increased 19 per cent to SEK 505 million (423), corresponding to a margin of 6.1 per cent (9.3)
• Adjusted EBITA, excluding items affecting comparability, increased 49 per cent to SEK 634 million (427). The adjusted EBITA margin was 7.7 per cent (9.4)
• Items affecting comparability amounted to SEK -129 million (-4), attributable to integration and synergy-realisation costs in connection with the acquisition of Aleris Omsorg, and to the restructure of overlapping capacity in Nytida
• Profit for the period totalled SEK 179 million (263)
• Earnings per share were SEK 2.16 (3.51) before and SEK 2.16 (3.51) after dilution
• Operating cash flow was SEK 869 million (447)
• Free cash flow totalled SEK 401 million (357)

Significant events

During the quarter, the company announced that Daniel Warnholtz, CFO and Deputy CEO, had decided to leave Ambea. Ingvild Kristiansen was appointed Business Area Manager of Stendi during the quarter, and is therefore a member of Group management. After the end of the quarter, Ambea announced that Group management had been expanded. As of 25 October, Group management consists of 12 people, of whom seven are women and five men.

SEK million	2019 Jul-Sep	2019 Jul-Sep1 excl. IFRS 16	2018 Jul-Sep	∆2 %	2019 Jan-Sep	2018 Jan-Sep	∆2 %	2018/2019 Rolling 12 months3	2018 Jan-Dec	∆ %
Net sales	2,843	2,843	1,541	84	8,237	4,526	82	9,787	6,076	61
EBITA	297	270	205	45	505	423	19	590	508	16
Operating margin, EBITA (%)	10.4	9.5	13.3		6.1	9.3		6.0	8.4
Adjusted EBITA	312	285	205	52	634	427	49	754	547	38
Operating margin, adjusted EBITA (%)	11.0	10.0	13.3		7.7	9.4		7.7	9.0
Operating profit, EBIT	270	243	184	47	415	365	14	479	429	12
Operating margin, EBIT (%)	9.5	8.5	11.9		5.0	8.1		4.9	7.1
Profit/loss after tax	157	172	128	23	179	263	-32	211	295	-28
Earnings/loss per share before dilution, SEK	1.66	1.82	1.71	-3	2.16	3.51	-38	2.62	3.95	-34
Earnings/loss per share after dilution, SEK	1.66	1.82	1.71	-3	2.16	3.51	-39	2.61	3.94	-34
Operating cash flow	318	118	79	303	869	447	94	1,070	648	65
Free cash flow	190	39	54	252	401	357	12	550	506	9

Consolidated key figures

For definitions of key figures, see Note 9

1 Alternative performance measures.

2 Related to the change between July-September 2018 and July-September 2019 with account for IFRS 16.

Comments from Fredrik Gren, President and CEO

Continued earnings growth and improvements in Norway

In the third quarter, Ambea continued to deliver sales growth and improved earnings year-on-year. The transition in Norway proceeded as planned and Stendi's earnings improved compared with the preceding quarters of this year. The integration of Aleris Omsorg is now complete and we can focus on efficiency improvements.

In the third quarter, net sales amounted to SEK 2,843 million (1,541). Own Management accounted for 73 per cent (69) of net sales. Adjusted EBITA rose 52 per cent year-on-year to SEK 312 million (205). Excluding the effect of IFRS 16, adjusted EBITA rose 39 per cent to SEK 285 million.

During the quarter, net sales rose SEK 1,302 million, corresponding to 84 per cent, mainly attributable to the acquisition of Aleris Omsorg. Organic net sales increased by 1.5 per cent. In Own Management, net sales rose from SEK 1,065 million to SEK 2,080 million, positively impacted by the acquisition of Aleris and new unit start-ups.

Adjusted EBITA rose 52 per cent to SEK 312 million, mainly attributable to high rates of occupancy in existing units, a changed contract mix and acquisitions with synergy realisations. IFRS 16 had a positive impact of SEK 27 million on earnings. We are excited about the high number of new start-ups in Vardaga and can see some negative effects on the earnings, but this was partly offset by a positive impact from existing units with continued high rates of occupancy and cost efficiency. In the coming quarters, we are expecting continued pressure on profitability due to several new start-ups of Vardaga units. Nytida reported higher profitability due to a stable LSS trend, improved occupancy in children and youth and continued effects from a previously implemented programme to optimise overlapping capacity. During the quarter, Altiden was negatively impacted by a provision for onerous contracts in home care. Klara's profitability increased due to a positive trend in subscription services for nursing staff.

We noted further results from the restructuring programme in Stendi during the quarter. Excluding the quarter's holiday effects of SEK 40-45 million, our Norwegian business area showed a positive underlying profit trend compared with the preceding quarters of this year. However, the transition process will need to continue in coming quarters to ensure quality and economic stability based on Ambea's management model. Margin growth will be the highest priority, with a focus on Own Management operations and the gradual closure of Contract Management operations in elderly care with low profitability.

The integration of Aleris Omsorg was completed during the quarter and we can now focus on closing the margin gap in comparable units with existing Ambea units due to the combined experience and knowledge in our operational management model. We achieved the SEK 90 million in annual synergies that were communicated when the acquisition was announced, but expect that additional costs of approximately

SEK 10 million will be charged to the fourth quarter before the integration programme is fully implemented, bringing the total cost to SEK 110 million.

During the quarter, Vardaga, opened two nursing homes with a total of 120 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 2,252, corresponding to 27 per cent of the total number of beds and placements under own management.

During the quarter, we secured management contracts corresponding to annual sales of SEK 73 million, but lost contracts corresponding to SEK 127 million.

Our quality management was recognised in the third quarter when Vardaga received Hagdahlsakademiens Äldrematpris 2020 (the Hagdahl Academy's Senior Food Prize 2020) for the best food for senior citizens in Östergötland. Our diversity and equality management was also recognised when the Allbright Foundation ranked Ambea as one of Nasdaq Stockholm's top seven gender-equality companies, which is best in our industry. In the recently published Care Receiver Survey from the Swedish National Board of Health and Welfare, it was gratifying to see how the positive results for Vardaga's operations had also continued this year.

As we now close the third quarter, we can conclude that Ambea's units continued to show a positive trend and that our integration of Aleris Omsorg was completed ahead of schedule. Going forward, our focus will be on efficiency improvements.

Fredrik Gren

Group

Third quarter

Net sales

Net sales rose 84 per cent to SEK 2,843 million (1,541). Organic sales growth was 1.5 per cent year-on-year.

Net sales in Own Management amounted to SEK 2,080 million (1,065), up 95 per cent compared with the year-earlier period, due to the acquisition of Aleris Omsorg and to start-up units.

Net sales in Contract Management amounted to SEK 695 million (399). The year-onyear sales growth was due to the acquisition of Aleris Omsorg, but was offset by contracts terminated in 2018. Excluding the acquisition, sales in Contract Management declined SEK 4 million compared with the year-earlier period.

Net sales in Staffing declined 12 per cent to SEK 68 million (77).

Earnings

EBIT rose 47 per cent to SEK 270 million (184), representing a margin of 9.5 per cent (11.9).

EBITA rose 45 per cent to SEK 297 million (205). The EBITA margin was 10.4 per cent (13.3). EBITA for the quarter was impacted by items affecting comparability of SEK -15 million (0), attributable to integration and synergy-realisation costs for the acquisition of Aleris Omsorg.

Adjusted EBITA for the quarter rose 52 per cent to SEK 312 million (205). Completed acquisitions, synergy realisations from acquisitions and start-up units had a positive impact on earnings. New-starts had a negative impact on earnings. The adjusted EBITA margin was 11.0 per cent (13.3). Excluding the effect of IFRS 16, the adjusted EBITA margin was 10.0 per cent (13.3). IFRS 16 had a positive impact of SEK 27 million on EBITA for the quarter.

Net financial items

During the quarter, net financial items amounted to SEK -69 million (-16). The change was due to an amount of SEK 46 million from the effects of IFRS 16 and increased interest expense associated with financing the acquisition of Aleris Omsorg.

Income tax

Tax expense for the period was SEK 44 million (40), corresponding to an effective tax rate of 22 per cent (24).

Profit for the period

Profit for the period was SEK 157 million (128), corresponding to earnings per share of SEK 1.66 (1.71) before dilution and SEK 1.66 (1.71) after dilution.

Net sales by segment July-September 2019

Net sales by contract model July-September 2019

Distribution of net sales

Net sales by segment	2019 Jul-Sep	2018 Jul-Sep
Vardaga	32%	36%
Nytida	33%	50%
Stendi	29%	9%
Altiden	4%	–
Klara	2%	5%
Total	100%	100%

Net sales by contract model	2019 Jul-Sep	2018 Jul-Sep
Own Management	73%	68%
Contract Management	24%	27%
Staffing	3%	5%
Total	100%	100%

Distribution of net sales

	Own Management			Contract Management				Staffing			Total
SEK million	2019 Jul-Sep	2018 Jul-Sep	%	2019 Jul-Sep	2018 Jul-Sep	%	2019 Jul-Sep	2018 Jul-Sep	%	2019 Jul-Sep	2018 Jul-Sep	%
Vardaga	533	282	89	371	275	35	–	–	–	904	557	62
Nytida	809	641	25	123	124	-1	–	–	–	932	765	22
Stendi	725	142	409	87	–	–	–	–	–	812	142	473
Altiden	13	–	–	114	–	–	–	–	–	127	–	–
Klara	–	–	–	–	–	–	68	77	-12	68	77	-12
Group	2,080	1,065	95	695	399	74	68	77	-12	2,843	1,541	84

Own Management – total in operation, including acquisitions

	OB		Change		CB
SEK million	Units	Beds/ Placements	Units	Beds/ Placements	Units	Beds/ Placements
Vardaga – beds	44	2,313	2	120	46	2,433
Vardaga – home-care customers	–	2,312	–	-42	–	2,270
Nytida – beds	222	2,444	-2	-531	220	2,391
Nytida – placements	91	2,726	–	–	91	2,726
Stendi – beds	434	923	-13	-18	421	905
Stendi – home-care customers	–	19	–	–	–	19
Altiden – beds	3	35	–	–	3	35
Altiden – home-care customers	–	1,969	–	77	–	2,046
Total beds and placements	794	8,441	-13	49	781	8,490
Total home-care customers	–	4,300	–	35	–	4,335

Own Management – pipeline

		Quarterly change
SEK million	OB	Opened during the quarter	New during the quarter2	CB
Vardaga	1,910	120	144	1,934
Nytida – beds	180	6	27	201
Nytida – placements	–	–	40	40
Stendi	–	–	–	–
Altiden	77	–	–	77
Total	2,167	126	211	2,252

Contract Management – pipeline

		Allocation decisions during the quarter3
SEK million	Units	Beds	Annual revenue	ed during the quarter Annual revenue4
Won	15	95	73	61
Renewed confidence	6	57	29	16
Lost	7	233	127	63
Handed back to municipal management	2	139	66	29

1 The change in the number of units and beds includes the closure of two operations as part of the previously announced programme to optimise overlapping capacity.

2 New refers to the total sum of signed contracts and units under construction. For more information about expected opening dates, refer to Own Management – pipeline under ambea.com/investor-relations/

3 Allocation decisions during the quarter mean that Ambea received decisions during the quarter about contracts that are to be handed back or started up. The period of time between allocation and handback/start-up ranges from a couple of months to one year. About 9-12 months for Vardaga, and 6-9 months for Nytida.

4 Shows the contracts started up or handed back during the quarter and their annual revenue.

Group

January-September

Net sales

Net sales rose 82 per cent to SEK 8,237 million (4,526). Organic sales growth was 1 per cent year-on-year.

Net sales in Own Management amounted to SEK 5,979 million (3,085), up 94 per cent compared with the year-earlier period, mainly due to the acquisition of Aleris Omsorg and to start-up units.

Net sales in Contract Management amounted to SEK 2,035 million (1,203), an increase of 69 per cent. The year-on-year sales growth was due to the acquisition of Aleris Omsorg, but was offset by contracts terminated in 2018.

Net sales in Staffing declined 6 per cent to SEK 223 million (238).

Earnings

Operating profit (EBIT) rose 14 per cent to SEK 415 million (365), representing a margin of 5.0 per cent (8.1).

EBITA rose 19 per cent to SEK 505 million (423). The EBITA margin was 6.1 per cent (9.3). EBITA for the period was impacted by items affecting comparability of SEK -129 million (-4), attributable to integration and synergy-realisation costs for the acquisition of Aleris Omsorg and to the restructure of overlapping capacity in Nytida.

Adjusted EBITA for the period rose 48 per cent to SEK 634 million (427). Completed acquisitions and start-up units had a positive impact on earnings. Units acquired from Aleris Omsorg and new-starts had a negative impact on earnings. The adjusted EBITA margin was 7.7 per cent (9.4). Excluding the effect of IFRS 16, the adjusted EBITA margin was 6.9 per cent. IFRS 16 had a positive impact of SEK 69 million on EBITA for the period.

Net financial items

Net financial items amounted to SEK -186 million (-28) for the period. The change was due to an amount of SEK 119 million from the effects of IFRS 16 and increased interest expense associated with financing the acquisition of Aleris Omsorg.

Income tax

Tax expense for the period was SEK 50 million (74), corresponding to a tax rate of 22 per cent (22).

Profit for the period

Profit for the period was SEK 179 million (263), corresponding to earnings per share of SEK 2.16 (3.51) before dilution and SEK 2.16 (3.51) after dilution.

Net sales by segment January-September 2019

Net sales by contract model January-September 2019

Distribution of net sales

Net sales by segment	2019 Jan-Sep	2018 Jan-Sep
Vardaga	31%	3%
Nytida	33%	49%
Stendi	29%	9%
Altiden	4%	–
Klara	3%	5%
Total	100%	100%

Net sales by contract model	2019 Jan-Sep	2018 Jan-Sep
Own Management	72%	68%
Contract Management	25%	27%
Staffing	3%	5%
Total	100%	100%

Distribution of net sales

Own Management				Contract Management				Staffing			Total
SEK million	2019 Jan-Sep	2018 Jan-Sep	%	2019 Jan-Sep	2018 Jan-Sep	%	2019 Jan-Sep	2018 Jan-Sep	%	2019 Jan-Sep	2018 Jan-Sep	%
Vardaga	1,506	832	81	1,073	832	29	–	–	–	2,578	1,664	55
Nytida	2,388	1,858	29	358	371	-4	–	–	–	2,747	2,229	23
Stendi	2,046	395	418	290	–	–	–	–	–	2,336	395	491
Altiden	39	–	–	314	–	–	–	–	–	353	–	–
Klara	–	–	–	–	–	–	223	238	-6	223	238	-6
Group	5,979	3,085	94	2,035	1,203	69	223	238	-6	8,237	4,526	82

Cash flow

SEK million	2019 Jul-Sep	2018 Jul-Sep	2019 Jan-Sep	2018 Jan-Sep	2018/2019 Rolling 12 months1	2018 Jan-Dec
Cash flow from operating activities before changes in working capital	416	191	746	388	780	465
Cash flow from changes in working capital	-200	-137	-258	-15	-127	74
From operating activities	216	54	488	373	653	538
Cash flow from investing activities (excluding acquisitions/divest ments and investments in financial assets)	-25	0	-86	-16	-103	-32
Free cash flow	190	54	401	357	550	506

Free cash flow for the quarter amounted to SEK 190 million (54). The increased free cash flow compared with the year-earlier period was largely due to the effects of IFRS 16. During the period, the higher proportion of Own Management operations had a negative impact on tied-up working capital, entailing an increase in prepaid rents. In addition, acquired operations from Aleris Care in home care services affected working capital negatively during the period.

The adoption of IFRS 16 had a positive impact of SEK 154 million on cash flow from operating activities year-on-year. For the January-September period, the effect of IFRS 16 amounted to SEK 410 million year-on-year.

Financial position

SEK million	30 Sep 2019	30 Sep 20192 excl. IFRS 16	30 Sep 2018	31 Dec 2018
Net interest-bearing debt	8,387	3,543	2,153	1,993
Equity/assets ratio (%)	28.0	42.7	45.8	46.7
Net debt/Rolling 12 months adjusted EBITDA	6.4	4.6	3.7	3.3

For definitions of key figures, see Note 9

At 30 September 2019, net debt amounted to SEK 8,387 million (2,153), or 6.4 times 12-months adjusted EBITDA. The increase in net debt was attributable to higher borrowing within existing credit frameworks due to the acquisition of Aleris's care operations and to a lease liability recognised in accordance with IFRS 16.

At the balance-sheet date, equity amounted to SEK 4,000 million, compared with SEK 2,707 million at 31 December 2018. The adoption of IFRS 16 had a positive impact of SEK 39 million on equity.

1 Includes nine months according to IFRS 16, and three months according to previous accounting policies. 2 Alternative performance measures.

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 62 per cent year-on-year to SEK 904 million (557).

Net sales in Own Management amounted to SEK 533 million (282), up 89 per cent due to the acquisition of Aleris Omsorg and to newly opened units.

Net sales in Contract Management amounted to SEK 371 million (275). The 35 per cent increase was due to a positive impact from the acquisition of Aleris Omsorg, reduced by lost contracts in existing operations. During the quarter, Vardaga lost contract allotments with annual revenue of SEK 123 million and municipalities announced that contracts corresponding to annual revenue of SEK 66 million would be retaken, with effect in 2020. During the quarter, new contracts corresponding to annual revenue of SEK 50 million were started, while contracts corresponding to annual revenue of SEK 70 million were handed back to the municipality.

EBITA rose 44 per cent to SEK 82 million (57). The acquisition of Aleris Omsorg and high rates of occupancy in units already started-up under Own Management had a positive impact on EBITA, while costs for new start-ups were charged to earnings.

The EBITA margin was 9.1 per cent (10.2). Excluding the effect of IFRS 16, the margin declined 3.1 percentage points to 7.1 per cent. The margin decline was attributable to a higher number of start-ups under Own Management and to the acquisition of Aleris Omsorg. The EBITA margin for comparable units rose 2.7 percentage points excluding the effect of IFRS 16, mainly attributable to a growing proportion of Own Management operations and high rates of occupancy.

After the end of the quarter, one home care contract in Norrköping was divested as part of the strategic review of the home care operations.

January-September period

Vardaga's net sales rose 55 per cent year-on-year to SEK 2,578 million (1,664).

Net sales in Own Management amounted to SEK 1506 million (832), up 81 per cent due to the acquisition of Aleris Omsorg and to newly opened units.

Net sales in Contract Management amounted to SEK 1,073 million (832). The 29 per cent increase was due to a positive impact from the acquisition of Aleris Omsorg, reduced by lost contracts in existing operations.

EBITA rose 34 per cent to SEK 168 million (125). The acquisition of Aleris Omsorg and higher rates of occupancy in newly opened units under start-up made a positive contribution, while ongoing start-ups of new operations had a negative impact.

The EBITA margin was 6.5 per cent (7.5). The reduced margin was mainly attributable to the acquisition of Aleris Omsorg combined with new unit start-ups. Excluding the effect of IFRS 16, the EBITA margin was 4.9 per cent.

SEK million	2019 Jul-Sep	2019 Jul-Sep1 excl. IFRS 16	2018 Jul-Sep	∆2 %	2019 Jan-Sep	2018 Jan-Sep	∆ %	2018/2019 Rolling 12 months3	2018 Full-year	∆ %
Net sales	904	904	557	62	2,578	1,664	55	3,138	2,224	41
EBITA	82	64	57	44	168	125	34	202	159	27
Operating margin, EBITA (%)	9.1	7.1	10.2		6.5	7.5		6.4	7.1
Operating margin EBITA comparable units (%)	15.5	13.5	10.8		12.0	8.1		10.6	7.6

1 Alternative performance measures.

2 Related to the change between July-September 2018 and July-September2019 with account for IFRS 16.

3 Includes nine months according to IFRS 16, and three months according to previous accounting policies.

Vardaga's operating margin (EBITA) RTM3 %

Own Management – total in operation

	OB			Quarterly change	CB
	Units	Beds	Units	Beds	Units	Beds
Beds	44	2,313	2	120	46	2,433
Home-care customers	–	2,312	–	-42	–	2,270

Own Management – pipeline

		Quarterly change
	OB	Opened during the quarter	New during the quarter1	CB
Beds	1,910	120	144	1,934

Contract Management – pipeline

		Allocation decisions during the quarter2	Started-up/terminated during the quarter 3
	Units	Beds	Annual revenue	Annual revenue
Won	–		– –	50
Renewed confidence	1	23	11	16
Lost	6	228	123	54
Handed back to municipal management	2	139	66	16

1 New refers to the total sum of signed contracts and units under construction. For more information about expected opening dates, refer to Own Management – pipeline under ambea.com/investor-relations/

2 Allocation decisions during the quarter mean that Ambea has received decisions during the quarter about contracts that are to be handed back or started up. The period of time between allocation and handback/start-up varies, but generally amounts to about 9-12 months for Vardaga.

3 Shows the contracts started up or handed back during the quarter and their annual revenue.

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 22 per cent to SEK 932 million (765).

Net sales in Own Management amounted to SEK 809 million (641), up 25 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 123 million (124). The decline in sales was due to contracts terminated in 2018. During the quarter, Nytida secured new contracts corresponding to an annual volume of SEK 73 million, while contracts corresponding to annual revenue of SEK 4 million were lost. During the quarter, contracts corresponding to annual sales of SEK 9 million were terminated, while the effect of newly secured start-up contracts amounted to annual revenue of SEK 11 million. Nytida continued to win quality-based tenders during the quarter.

EBITA rose 36 per cent to SEK 174 million (128). The acquisition of Aleris Omsorg and high rates of occupancy in established units under own management made a positive contribution to earnings. The trend in social care for children & youth had a positive impact on the quarter year-on-year.

In the third quarter, the implementation of activities linked to the previously announced programme to optimise overlapping capacity continued. The positive earnings effect of the action programme was strengthened, compared with the second quarter.

The EBITA margin was 18.6 per cent (16.7). Excluding the effect of IFRS 16, the EBITA margin rose 1.2 percentage points to 17.9 per cent.

Pusselbiten school, a special educational needs school in Skåne, was acquired at the beginning of the quarter. For more information, see Note 5. After the end of the quarter, a residential treatment centre for alcohol and drug addiction was divested.

January-September period

Net sales rose 23 per cent to SEK 2,747 million (2,229).

Net sales in Own Management amounted to SEK 2,388 million (1,858), up 29 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 358 million (371), a decline of 4 per cent due to previously terminated contracts.

EBITA rose 38 per cent to SEK 392 million (284). The acquisition of Aleris Omsorg made a positive contribution. An action programme to reduce overlapping operations due to the acquisition of Aleris commenced in the first quarter. The annual effect of the action programme is an estimated SEK 24 million. The earnings effect is expected to be gradual, starting in the second quarter and reaching full effect in 2020.

The EBITA margin was 14.3 per cent (12.7).

SEK million	2019 Jul-Sep	2019 Jul-Sep1 excl. IFRS 16	2018 Jul-Sep	∆2 %	2019 Jan-Sep	2018 Jan-Sep	∆ %	2018/2019 Rolling 12 months3	2018 Full-year	∆ %
Net sales	932	932	765	22	2,747	2,229	23	3,499	2,982	17
EBITA	174	167	128	36	392	284	38	477	369	29
Operating margin, EBITA (%)	18.6	17.9	16.7		14.3	12.7		13.6	12.3

1 Alternative performance measures.2 Related to the change between July-September 2018 and July-September 2019

with account for IFRS 16. 3 Includes nine months according to IFRS 16, and three months according to previous accounting policies.

Nytida's operating margin (EBITA) RTM3 %

Own Management – total in operation

	Units	OB Beds/ Placements	Units	Quarterly change1 Beds/ Placements	Units	CB Beds/ Placements
Beds	222	2,444	-2	-53	220	2,391
Placements	91	2,726	–	–	91	2,726

Own Management – pipeline

			Quarterly change
	OB		Opened during the quarter	New during the quarter2	CB
Beds		180	6	27	201
Placements		–	–	40	40

Contract Management – pipeline

		Allocation decisions during the quarter3	Started-up/terminated during the quarter
	Units	Beds	Annual revenue	Annual revenue 4
Won	15	95	73	11
Renewed confidence	5	34	18	–
Lost	1	5	4	9
Handed back to municipal management	–	–	–	–

1 The change in the number of units and beds in Nytida includes the closure of two operations as part of the previously announced programme to optimise overlapping capacity.

2 New refers to the total sum of signed contracts and units under construction. For more information about expected opening dates, refer to Own Management – pipeline under ambea.com/investor-relations/

3 Allocation decisions during the quarter mean that Ambea received decisions during the quarter about contracts that are to be handed back or started up. The period of time between allocation and handback/start-up varies, but generally amounts to about 6-9 months for Nytida.

4 Shows the contracts started up or handed back during the quarter and their annual revenue.

Stendi

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

Quarter

Net sales rose 473 per cent to SEK 812 million (142). The increase was largely due to the acquisition of Aleris Omsorg. During the quarter, acquired units with low rates of occupancy were closed down in line with previously communicated decisions, which had a negative impact on sales. The Norwegian Directorate for Children, Youth and Family Affairs has announced cost savings and a dialogue has been initiated to understand the consequences. The currency effect on sales in comparable, existing units had a positive impact of SEK 2 million year-on-year.

Net sales in Own Management amounted to SEK 725 million (142), up 411 per cent. This growth was attributable to the acquisition of Aleris Omsorg.

Net sales in Contract Management amounted to SEK 87 million (0), and the entire increase was attributable to the acquisition of Aleris's care operations.

EBITA rose 181 per cent to SEK 59 million (21). The increase was largely due to the acquisition of Aleris Omsorg. Adjusted for holiday effects of SEK 40-45 million, Stendi showed an underlying profit growth trend compared with the preceding quarters of 2019. In the first quarter, a major restructuring programme was launched in Stendi to implement Ambea's operational model. The positive effects of the programme continued in the third quarter and earnings improved sequentially compared with the preceding quarters of this year.

The EBITA margin was 7.3 per cent (14.8).

January-September period

Net sales amounted to SEK 2,336 million (395). The increase was largely due to the acquisition of Aleris Omsorg. The currency effect on sales in comparable, existing units had a positive impact of SEK 5 million year-on-year.

Net sales in Own Management amounted to SEK 2,046 million (395), up 418 per cent. This growth was attributable to the acquisition of Aleris Omsorg.

Net sales in Contract Management amounted to SEK 290 million (0), and the entire increase was attributable to the acquisition of Aleris's care operations. During the period, one contract was terminated.

EBITA was SEK 50 million (29). In the first quarter, a major restructuring programme was launched to address the negative earnings trend that started in the acquired Aleris Omsorg's operations in November 2018. Ambea's management model, with a high proportion of own employees, was introduced to ensure quality and economic stability. During the period, available capacity related to acquired units was closed down, and the costs were charged to the opening balance for Aleris's care operations. For more information, refer to Note 5. The annual effect of the programme is an estimated SEK 8 million with a gradual start in the second quarter.

The EBITA margin was 2.1 per cent (7.3).

SEK million	2019 Jul-Sep	2019 Jul-Sep1 excl. IFRS 16	2018 Jul-Sep	∆2 %	2019 Jan-Sep	2018 Jan-Sep	∆ %	2018/2019 Rolling 12 months3	2018 Full-year	∆ %
Net sales	812	812	142	473	2,336	395	491	2,490	548	354
EBITA	59	57	21	181	50	29	72	54	33	64
Operating margin, EBITA (%)	7.3	6.6	14.8		2.1	7.3		2.2	6.0

1 Alternative performance measures.

2 Related to the change between July-September 2018 and July-September 2019 with account for IFRS 16.

3 Includes 9 months according to IFRS 16 and three months according to previous accounting policies.

Stendi's operating margin (EBITA) RTM3 %

Own Management – total in operation

	Units	OB Beds/ Placements	Units	Quarterly change Beds/ Placements	CB Units	Beds/ Placements
Beds	434	923	-13	-18	421	905
Home-care customers	–	19	–	–	–	19

Own Management – pipeline

			Quarterly change
	OB	Opened during the quarter	New during the quarter1	CB
Beds		– –	–	–

Contract Management – pipeline

		Allocation decisions during the quarter2	Started-up/terminated during the quarter
	Units	Beds	Annual revenue	Annual revenue 3
Won	–		– –	–
Renewed confidence	–		– –	–
Lost	–		– –	–
Handed back to municipal management	–		– –	13

1 New refers to the total sum of signed contracts and units under construction. For more information about expected opening dates, refer to Own Management – pipeline under ambea.com/investor-relations/

2 Allocation decisions during the quarter mean that Ambea has received decisions during the quarter about contracts

that are to be handed back or started up. The period of time between allocation and handback/start-up varies.

3 Shows the contracts started up or handed back during the quarter and their annual revenue.

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 amounted to SEK 127 million (0). All of Altiden's operations comprise units from the acquisition of Aleris Omsorg.

Net sales in Own Management amounted to SEK 13 million (0). During the quarter, the occupancy trend for previously opened residential care services in disability care was positive, compared with the plan.

Net sales in Contract Management amounted to SEK 114 million (0). No new allocation decisions were announced during the quarter. No management contracts were started up or terminated during the quarter.

EBITA was SEK -8 million (0). EBITA was negatively impacted by a onerous contract reserve of SEK 5 million as the counterparty used the extension option in a contract. The contract also contains another one-year extension option.

The EBITA margin was -6.3 per cent (0).

January-September period

Net sales amounted to SEK 353 million (0). All of Altiden's operations comprise units from the acquisition of Aleris Omsorg.

Net sales in Own Management amounted to SEK 39 million (0). During the period, the start-up of opened operations developed better than planned due to an improved occupancy trend.

Net sales in Contract Management amounted to SEK 314 million (0). No new allocation decisions were announced during the period. No management contracts were started up or terminated during the quarter.

EBITA was SEK -12 million (0). EBITA was negatively impacted by higher costs for building up a separate organisation in Altiden and strengthening the organisation for future growth. A onerous contract reserve for a management contract also had a negative impact on earnings.

The EBITA margin was -3.4 per cent (0).

SEK million	2019 Jul-Sep	2019 Jul-Sep1 excl. IFRS 16	2018 Jul-Sep	∆2 %	2019 Jan-Sep	2018 Jan-Sep	∆ %	2018/2019 Rolling 12 months3	2018 Full-year	∆ %
Net sales	127	127	–	–	353	–	–	353	–	–
EBITA	-8	-8	–	–	-12	–	–	-12	–	–
Operating margin, EBITA (%)	-6.3	-6.3	–		-3.4	–		-3.4	–

1 Alternative performance measures.

2 Related to the change between July-September 2018 and July-September 2019 with account for IFRS 16.

Own Management – total in operation

	Units	OB Beds/ Placements	Units	Quarterly change Beds/ Placements	Units	CB Beds/ Placements
Beds		3 35		– –		3 35
Home-care customers		– 1,969		– 77		– 2,046

Own Management – pipeline

			Quarterly change
	OB	Opened during the quarter	New during thequarter1	CB
Beds		77 –		– 77

Contract Management – pipeline

		Allocation decisions during the quarter2	Started-up/terminated during the quarter
	Units	Beds	Annual revenue	Annual revenue3
Won	–	–	–	–
Renewed confidence	–	–	–	–
Lost	–	–	–	–
Handed back to municipal management	–	–	–	–

1 New refers to the total sum of signed contracts and units under construction. For more information about expected opening dates, refer to Own Management – pipeline under ambea.com/investor-relations/

2 Allocation decisions during the quarter mean that Ambea has received decisions during the quarter about contracts

that are to be handed back or started up. The period of time between allocation and handback/start-up varies.

3 Shows the contracts started up or handed back during the quarter and their annual revenue.

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 mediate thousands of assignments every year and conduct operations throughout Sweden.

Quarter

Net sales declined 12 per cent to SEK 68 million (77). Two thirds of sales comprise revenue from customers in the public sector. The decrease was attributable to a negative trend in temporary staffing services and to the private customer segment. The decline was partly offset by increased sales in Klara Team, which offers qualified on-call services on a subscription basis.

EBITA was SEK 7 million (5), representing a margin of 10.3 per cent (6.5). The performance of Klara Team and effects of the completed adaptation of administrative costs continued to make a positive contribution.

The third quarter was the first quarter in which the provision of temporary care staff is subject to VAT. The change led to lower demand from private customers and thus lower sales. The impact on earnings is considered marginal.

January-September period

Net sales declined 6 per cent to SEK 223 million (238). Two thirds of sales comprise revenue from customers in the public sector. The decline was the result of a negative trend, primarily in the supply of temporary doctors and nurses. The lower sales were partly offset by increased sales in Klara Team, which offers qualified on-call services on a subscription basis.

EBITA was SEK 18 million (12), representing a margin of 8.1 per cent (5.1). The performance of Klara Team and effects of the completed adaptation of administrative costs made a positive contribution.

In June 2018, the Supreme Administrative Court issued a decision regarding VAT liability for staffing agencies supplying temporary care staff. For Klara, these new guidelines from the Swedish Tax Agency entail that, as of 1 July 2019, the supply of temporary care staff to municipalities, counties and private social care companies are now classified as sales liable to VAT. Some of the administrative cost-savings programme implemented in 2018 specifically addressed the need to adapt the cost mass in the staffing operations.

SEK million	2019 Jul-Sep	2019 Jul-Sep1 excl. IFRS 16	2018 Jul-Sep	∆2 %	2019 Jan-Sep	2018 Jan-Sep	∆ %	2018/2019 Rolling 12 months3	2018 Full-year	∆ %
Net sales	68	68	77	-12	223	238	-6	306	321	-5
EBITA	7	7	5	40	18	12	50	22	16	-13
Operating margin, EBITA (%)	10.3	10.3	6.5		8.1	5.0		7.2	5.0

1 Alternative performance measures.

2 Related to the change between July-September 2018 and July-September 2019 with account for IFRS 16.

Other events

New share issue

Following authorisation at the Annual General Meeting (AGM) on 16 May, Ambea conducted a rights issue of 27,001,440 shares with the aim of repaying part of the financing of the acquisition of Aleris's care operations in Sweden, Norway and Denmark. The rights issue increased the number of shares in Ambea, which amounted to 94,617,996 on the last trading day of the quarter (30 September). Ambea generated proceeds of approximately SEK 1,200 million from the rights issue, and recognised issue expenses of SEK 17 million.

Incentive programmes

The AGM on 16 May 2019 resolved to adopt two new long-term incentive programmes: (i) a warrants programme for Group management and (ii) a matching share plan for certain employees in the Ambea Group. Both programmes correspond essentially to the programmes adopted in 2017 and 2018. For further information about the programmes, see information from the AGM at ambea.com/investor-relations/corporate-governance/shareholders-meeting/annual-general-meeting-2019/

Legal proceeding regarding social security costs for temporary staff in Norway Since the first quarter, through the acquisition of Aleris's care operations, Ambea has been involved in an ongoing legal proceeding in Norway regarding social security 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, the District Court pronounced its decision. Of the 24 parties involved in the legal proceeding, two were considered entitled to social security costs 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's care operations' reporting of tax for temporary staff. The audit continued during the quarter and Ambea is waiting for feedback on the Tax Administration's assessment.

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.

Acquisition of Pusselbiten school

On 1 July, Ambea's business area Nytida acquired Pusselbiten School, which provides special-needs education, after-school activities and short-term supervision in Skåne in southern Sweden.

Changes in Group management

During the quarter, Ambea announced that Daniel Warnholtz, CFO and Deputy CEO, had decided to leave Ambea after eight years of service. The process of appointing his successor has begun and Daniel Warnholtz will continue in his role as CFO until a new person has been appointed. During the quarter, Ingvild Kristiansen was appointed Business Area Manager of Stendi and is therefore a member of Group management. Ingvild has served as Stendi's interim business area manager since April.

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

On 25 October, Ambea announced that Group management would be expanded. As of 25 October, Group management has consisted of 12 people, of whom seven are women and five men. The following people have now joined Group management: Anders Westerholm (HR), Erik Sörensson, (Business Development), Malin Appelgren (Growth), Maria Green-Gadelius (Quality & Sustainability) and Nanna Wedar (Communication & Market). The Head of Operational Excellence & IT will also be a member of Group management, but this position is currently vacant.

After the end of the quarter, the company divested one home care contract in Norrköping as part of its strategic review of the home care operations, and one residential treatment centre for alcohol and drug addiction. The divestments are not deemed to have any major impact on the Group's income and earnings.

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. The first or second quarter is affected by Easter, depending on which quarter the Easter holiday falls, while the first and fourth quarter are affected by Christmas and New Year holidays. In the fourth quarter of 2019, the company expects a somewhat greater seasonal effect year-on-year.

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

During the quarter, the average number of full-time employees (FTEs) was 12,830 (7,456), and the increase was mainly due to acquisitions.

Parent Company

The Parent Company's earnings pertain to Group-wide costs. During the quarter, Parent Company net sales amounted to SEK 4 million (8). The quarterly loss totalled SEK -12 million (-6).

The weaker earnings were mainly attributable to increased interest expense due to the acquisition of Aleris's care operations.

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 45-47 of the 2018 Annual 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, 7 November 2019

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 third quarter of 2019

Ambea will hold a presentation for the financial market, with the possibility to participate by teleconference, at 10:00 a.m. CET, on Friday, 8 November 2019. The presentation will be held in English, and be available as a webcast at www.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 starts to register, or use the code: 9857527.

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 & IR, telephone +46 (0)708 64 07 52

Forthcoming report occasions

Q4 interim report and year-end report for 2019	14 February 2020
Annual Report	9 April 2020
Q1 interim report for 2020	13 May 2020
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. ambea.se

Auditor's review

Ambea AB (publ), Corp. Reg. No. 556468-4354

Introduction

We have conducted a limited review of the interim financial information (interim report) for Ambea AB (publ) at 30 September 2019 and for the nine-month period that ended on this date. The Board of Directors and Chief Executive Officer are responsible for preparing and presenting this interim report in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express an opinion on this interim report based on our review.

Focus and scope of the review

We have conducted our review in accordance with International Standard on Review Engagements (ISRE) 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity." A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review has another focus and considerably less scope than the focus and scope of an audit in accordance with International Standards on Auditing and generally accepted auditing standards.

The procedures performed in a review do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. The opinion expressed based on a review does not therefore have the same level of assurance as an opinion expressed on the basis of an audit.

Opinion

Based on our review, no circumstances have arisen that give us any reason to believe that this interim report has not, in all material respects, been prepared for the Group in accordance with IAS 34 and the Swedish Annual Accounts Act, and for the Parent Company in accordance with the Swedish Annual Accounts Act.

Stockholm, 7 November 2019

Ernst & Young AB

Staffan Landén Authorised Public Accountant

Consolidated income statement in summary

SEK million	2019 Jul-Sep	2018 Jul-Sep	2019 Jan-Sep	2018 Jan-Sep	2018/2019 Rolling 12 months1	2018 Jan-Dec
OPERATING INCOME
Net sales	2,843	1,541	8,237	4,526	9,787	6,076
Other operating income	21	18	62	45	87	70
Total operating income	2,864	1,559	8,299	4,571	9,874	6,146
OPERATING EXPENSES
Consumables	-99	-46	-312	-135	-360	-184
Other external costs	-351	-292	-1,135	-897	-1,490	-1,252
Personnel costs	-1,913	-1,002	-5,809	-3,067	-6,883	-4,142
Depreciation, amortisation and impairment of tangible and intan gible assets	-232	-36	-626	-102	-660	-135
Profit/loss from participations in Group companies	–	–	–	-4	0	-4
Other operating expenses	0	–	-2	0	-3	-1
Operating expenses	-2,594	-1,375	-7,884	-4,206	-9,395	-5,717
OPERATING PROFIT	270	184	415	365	479	429
Financial income	2	3	11	5	10	2
Financial expenses	-71	-19	-197	-33	-207	-40
Net financial items	-69	-16	-186	-28	-196	-38
PROFIT AFTER NET FINANCIAL ITEMS	201	168	229	337	283	391
PROFIT BEFORE TAX	201	168	229	337	283	391
Tax on profit for the period	-44	-40	-50	-74	-72	-96
PROFIT FOR THE PERIOD	157	128	179	263	211	295
Profit for the period attributable to shareholders of the Parent Company	157	128	179	263	211	295
Earnings per share before dilution, SEK	1.66	1.71	2.16	3.51	2.62	3.95
Earnings per share after dilution, SEK	1.66	1.71	2.16	3.51	2.61	3.94

Consolidated statement of comprehensive income in summary

SEK million	2019 Jul-Sep	2018 Jul-Sep	2019 Jan-Sep	2018 Jan-Sep	2018/2019 Rolling 12 months1	2018 Jan-Dec
PROFIT FOR THE PERIOD AFTER TAX	157	128	179	263	211	295
OTHER COMPREHENSIVE INCOME, ITEMS NOT TRANSFERABLE TO PROFIT OR LOSS
Remeasurement of defined-benefit pension plans	-12	–	-12	–	-12	–
Tax related to remeasurement of defined-benefit pension plans	–	–	–	–	–	–
Total items not transferable to profit or loss	-12	–	-12	–	-12	–
OTHER COMPREHENSIVE INCOME, ITEMS TRANSFERABLE TO PROFIT OR LOSS
Translation differences	6	-3	12	20	10	5
Hedging of net investments in foreign operations	2	3	-12	-18	1	-5
Cash flow hedges	0	–	1	–	–	–
Hedging cost reserve	0	–	-4	–	-3	–
Tax	-1	-1	3	4	–	1
Total items transferable to profit or loss	7	-1	-1	6	8	1
Total other comprehensive income	-5	-1	-13	6	-4	1
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD	152	127	166	269	207	296
Comprehensive income for the period attributable to sharehold ers of the Parent Company	152	127	166	269	207	296

Earnings per share

SEK million	2019 Jul-Sep	2018 Jul-Sep	2019 Jan-Sep	2018 Jan-Sep	2018/2019 Rolling 12 months1	2018 Jan-Dec
Profit for the period attributable to shareholders of the Parent Company, SEK million	157	128	179	263	211	295
Earnings per share before dilution
Average number of shares, thousands	94,505	74,873	82,781	74,873	80,756	74,798
Earnings per share before dilution, SEK	1.66	1.71	2.16	3.51	2.62	3.95
Earnings per share after dilution
Average number of shares, thousands	94,599	74,920	82,874	74,909	80,852	74,835
Earnings per share after dilution, SEK	1.66	1.71	2.16	3.51	2.61	3.94

Consolidated balance sheet in summary

SEK million	30 Sep 2019	30 Sep 2018	31 Dec 2018
ASSETS
Fixed assets
Goodwill	6,586	4,086	4,058
Customer contracts and customer relationships	642	468	446
Other intangible assets	11	19	22
Right-of-use assets1	4,859	–	–
Tangible assets	254	205	211
Derivative instruments	1	0	0
Deferred tax assets	71	42	35
Non-current receivables	35	27	27
Total fixed assets	12,459	4,847	4,799
Current assets
Inventories	0	0	0
Accounts receivable	1,156	647	622
Other receivables	80	58	68
Prepaid expenses and accrued income	265	164	167
Cash and cash equivalents	215	80	62
Total current assets excluding assets held for sale	1,716	949	919
Assets held for sale	88	69	74
Total current assets	1,804	1,018	993
TOTAL ASSETS	14,263	5,865	5,792

1 In the previous period, right-of-use assets relating to leased cars were recognised as tangible assets.

Consolidated balance sheet in summary – continuation

SEK million	30 Sep 2019	30 Sep 2018	31 Dec 2018
EQUITY AND LIABILITIES
Equity
Share capital	2	2	2
Other capital contributions	6,165	4,965	4,965
Reserves	16	6	1
Retained earnings including profit or loss for the period	-2,183	-2,289	-2,261
Total equity attributable to shareholders of the Parent Company	4,000	2,684	2,707
Non-controlling interests	–	–	–
Total equity	4,000	2,684	2,707
Non-current liabilities
Non-current interest-bearing liabilities	1,616	465	614
Lease liabilities1	4,316	–	–
Other non-interest-bearing liabilities	0	0	0
Pension provisions	41	7	4
Other provisions	69	0	0
Deferred tax liabilities	155	118	114
Total non-current liabilities	6,197	590	732
Current liabilities
Current interest-bearing liabilities	0	35	37
Commercial papers	2,061	1,733	1,404
Lease liabilities2	609	–	–
Accounts payable	202	137	198
Current tax liabilities	71	84	93
Other non-interest-bearing liabilities	185	78	74
Accrued expenses and deferred income	937	524	547
Total current liabilities	4,066	2,591	2,353
TOTAL EQUITY AND LIABILITIES	14,263	5,865	5,792

Consolidated statement of changes in equity in summary

SEK million	2019 Jan-Sep	2018 Jan-Sep	2018 Jan-Dec
Opening balance	2,707	2,480	2,480
Total comprehensive income	166	269	296
Transactions with shareholders
Warrants issued	–	2	3
Share buybacks	–	–	-4
New share issue	1,215	–	–
Issue expenses	-15	–	–
Dividends	-74	-68	-68
Closing balance	4,000	2,684	2,707

1 In the previous period, lease liabilities relating to leased cars were recognised as non-current interest-bearing liabilities.

2 In the previous period, lease liabilities relating to leased cars were recognised as current interest-bearing liabilities.

Consolidated cash flow statement in summary

SEK million	2019 Jul-Sep	2018 Jul-Sep	2019 Jan-Sep	2018 Jan-Sep	2018/2019 Rolling 12 months1	2018 Jan-Dec
OPERATING ACTIVITIES
Profit before tax	201	168	229	337	283	391
Adjustment for non-cash items	230	32	630	102	660	134
Cash flow from operating activities before working capital and tax	430	200	858	439	943	525
Tax paid	-15	-8	-112	-51	-120	-60
Cash flow from operating activities before changes in work ing capital	416	191	746	388	824	465
CASH FLOW FROM CHANGES IN WORKING CAPITAL
Change in operating receivables	112	-14	-21	31	-16	36
Change in operating liabilities	-312	-123	-238	-46	-154	37
Cash flow from operating activities	216	54	488	373	653	538
INVESTING ACTIVITIES
Investment in intangible assets	-1	0	-6	-2	-5	-1
Investment in tangible assets	-25	-2	-92	-20	-110	-38
Divestment of tangible assets	1	3	11	7	12	7
Free cash flow	190	54	401	357	550	506
Acquisition and disposal of shares and participations	-33	-18	-2,619	-368	-2,620	-368
Other financial assets	-1	0	-4	0	-3	0
Cash flow from investing activities	-60	-18	-2,710	-383	-2,726	-400
Cash flow after investing activities	156	36	-2,222	-10	-2,073	139
FINANCING ACTIVITIES
New loans/Loans raised	1,722	118	8,079	380	8,050	1,399
Repayment of loan liabilities	-1,159	-9	-4,801	-37	-5,119	-1,405
Repayment of lease liability	-165	–	-433	–	-433	–
Change in revolving credit facility	-577	-147	-1,594	-265	-1,418	-89
New share issue	-2	–	1,200	–	1,201	1
Premiums for warrants	–	–	–	2	–	2
Share buybacks	–	–	–	–	-4	-4
Dividends paid	–	–	-74	-68	-74	-68
Cash flow from financing activities	-180	-38	2,378	12	2,202	-164
CASH FLOW DURING THE PERIOD	-24	-2	156	2	129	-25
Cash and cash equivalents on the opening date	238	80	62	87	80	87
Exchange rate differences in cash and cash equivalents	0	3	-4	-9	5	0
Cash and cash equivalents on the closing date	215	80	215	80	215	62

Parent Company income statement in summary

SEK million	2019 Jul-Sep	2018 Jul-Sep	2019 Jan-Sep	2018 Jan-Sep	2018/2019 Rolling 12 months1	2018 Jan-Dec
INCOME
Net sales	4	8	14	19	23	29
Total income	4	8	14	19	23	29
OPERATING EXPENSES
Other external costs	-4	-2	-12	-13	-20	-22
Personnel costs	-4	-8	-14	-19	-20	-25
Amortisation of intangible assets	0	0	0	0	0	0
Operating expenses	-8	-10	-26	-32	-40	-47
OPERATING PROFIT/LOSS	-4	-2	-12	-13	-18	-18
Financial items	-9	-4	-58	2	-58	2
LOSS AFTER FINANCIAL ITEMS	-12	-6	-70	-11	-75	-16
Appropriations	–	–	–	–	15	15
LOSS BEFORE TAX	-12	-6	-70	-11	-60	-1
Tax on profit for the period	–	–	–	–	–	–
LOSS FOR THE PERIOD	-12	-6	-70	-11	-60	-1

Parent Company balance sheet in summary

SEK million	30 Sep 2019	30 Sep 2018	31 Dec 2018
ASSETS
Intangible assets
Software	1	2	1
Financial assets
Participations in Group companies	7,208	4,128	4,129
Other financial assets	–	–	32
Derivative assets	4	–	–
Total fixed assets	7,213	4,130	4,162
Current assets
Receivables from Group companies	2	23	23
Other receivables	16	0	16
Tax assets	6	2	2
Prepaid expenses and accrued income	9	4	4
Cash and bank balances	0	10	0
Total current assets	33	39	45
TOTAL ASSETS	7,246	4,169	4,207
EQUITY AND LIABILITIES
Share capital	2	2	2
Statutory reserve	0	0	0
Total restricted equity	2	2	2
Share premium reserve	1,402	200	200
Retained earnings	1,776	1,856	1,852
Loss for the period	-70	-11	-1
Total non-restricted equity	3,108	2,045	2,051
TOTAL EQUITY	3,111	2,047	2,053
Non-current liabilities
Liabilities to credit institutions	2,056	369	713
Current liabilities
Commercial papers	2,061	1,733	1,404
Accounts payable	1	2	7
Other liabilities	1	1	2
Accrued expenses and deferred income	16	17	28
Total current liabilities	2,080	1,753	1,441
TOTAL EQUITY AND LIABILITIES	7,246	4,169	4,207

Key financial figures

SEK million	2019 Jul-Sep	2019 Jul-Sep excl. IFRS 16	2018 Jul-Sep	%	2019 Jan-Sep	2018 Jan-Sep	%	2018/2019 Rolling 12 months1	2018 Jan-Dec	%
Net sales	2,843	2,843	1,541	84	8,237	4,526	82	9,787	6,076	61
Growth in net sales (%)	84	84	4		82	4		61	4
EBITDA	502	302	220	128	1,041	467	123	1,138	564	102
Operating margin, EBITDA (%)	17.7	10.6	14.3		12.6	10.3		11.6	9.3
Items affecting comparability	15	15	0		129	-4		164	39
Adjusted EBITDA	517	317	220	135	1,170	471	148	1,303	603	116
Operating margin, adjusted EBITDA (%)	18.2	11.1	14.3		14.2	10.4		13.3	9.9
EBITA	297	270	205	45	505	423	19	590	508	16
Operating margin, EBITA (%)	10.4	9.5	13.3		6.1	9.3		6.0	8.4
Adjusted EBITA	312	285	205	52	634	427	49	754	547	38
Operating margin, adjusted EBITA (%)	11.0	10.0	13.3		7.7	9.4		7.7	9.0
Operating profit, EBIT	270	243	184	47	415	365	14	479	429	12
Operating margin, EBIT (%)	9.5	8.5	11.9		5.0	8.1		4.9	7.1
Profit/loss before tax	201	220	168	20	229	337	-32	283	391	-29
Profit/loss after tax	157	172	128	23	179	263	-32	211	295	-28
Earnings/loss per share before dilution, SEK	1.66	1.82	1.71	-3	2.16	3.51	-38	2.62	3.95	-34
Earnings/loss per share after dilution, SEK	1.66	1.82	1.71	-3	2.16	3.51	-39	2.61	3.94	-34
Return on equity (%)	4.0	4.3	4.9		5.3	10.2		6.3	11.4
Operating cash flow	318	118	79	303	869	447	94	1,070	648	65
Free cash flow	190	39	54	252	401	357	12	550	506	9
Cash conversion (%)	61.5	37.2	35.9		74.3	94.9		82.1	101

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, except for hedge accounting. Hedge accounting in accordance with IFRS 9 was applied to the hedge agreements signed in March 2019. Hedge accounting in accordance with IFRS 9 is applied as of 1 January 2019. Existing hedge relationships in line with IAS 39 meet the criteria for continued hedge accounting in accordance with IFRS 9, and no effects arose as a result of the transition.

New or revised IFRS standards

IFRS 16 Leases took effect on 1 January 2019 and supersedes the previous IFRS related to lease accounting. For a more detailed description of accounting policies, refer to Note G1 in the 2018 Annual Report.

Choice of method and exceptions

Ambea has chosen to apply the simplified transitional approach, which requires a restatement on the transition date by adjusting the opening balance at 1 January 2019. Ambea has

also elected to apply the transition relief that allows entities to exclude short-term assets and low-value assets.

Discounting

For contracts with terms of less than three years, an incremental borrowing rate of 1.75 per cent is used. For contracts with terms of three years or more, Ambea has assumed a risk-free interest rate corresponding to STIBOR and the equivalent for Norway, and added a margin of 1.75 per cent.

Transition effects, IFRS 16

Given that the transition to IFRS 16 will have a material impact on the financial statements, Ambea has elected to recognise a reconciliation between its commitments for operating leases at the end of 2018 and its lease liability at the start of 2019.

In Note G1 in the 2018 Annual Report and in this interim report, selected key figures are presented without the effect of IFRS 16. For definitions, refer to Note 9, and for reconciliation with IFRS financial statements, refer to Note 8.

Earnings per share

Due to the completed new share issue, the comparative figures for earnings per share were restated to reflect the bonus issue element.

Reconciliation of operating lease capitalisation

SEK million	Group
Obligations for operating leases excl. extension options at 1 January 2019	3,730
Extension options	142
Liabilities for finance leases at 1 January 2019	39
Discounting with the Group's weighted average incremental borrowing rate	-671
Short-term leases	-36
Right-of-use assets recognised at 1 January 2019	3,204

Note 2 Key judgements and estimates

For information about key judgements and estimates in this interim report, refer to Note G32 in the company's 2018 Annual Report.

Note 3 Segment information

Due to the acquisition of Aleris's care operations, a segment comprising the Danish operations has been added. The name of the Norwegian operations has now been changed from Heimta to Stendi, and also includes the operations acquired from Aleris.

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 staffing solutions, such as the supply of temporary doctors, nurses and other care workers, in Sweden.

Segments

July-September 2019 SEK million	Vardaga	Nytida	Stendi	Altiden	Klara	Unallocated items1	Group adjust ments	Group
OPERATING INCOME
Net sales	904	932	812	127	68	–	–	2,843
Other operating income	4	3	10	1	14	3	-14	21
Internal transactions	–	–	–	–	-14	–	14	–
Total income from external customers	908	936	823	127	68	3	–	2,864
EBITA	82	174	59	-8	7	-18	–	297
EBITA margin, %	9.1	18.7	7.3	-6.3	10.3	–	–	10.4
Items affecting comparability	–	–	–	–	–	15	–	15
Adjusted EBITA	82	174	59	-8	7	-3	–	312
Adjusted EBITA margin, %	9.1	18.7	7.3	-6.3	10.3	–	–	11.0
Amortisation of intangible assets								-27
Operating profit (EBIT)								270
Net financial items								-69
Profit after net financial items								201
Profit before tax								201
Tax on profit for the period								-44
PROFIT FOR THE PERIOD								157
ASSETS	5,352	5,949	2,220	230	182	330	–	14,263

July-September 2018 SEK million	Vardaga	Nytida	Stendi	Altiden	Klara	Unallocated items1	Group adjust ments	Group
OPERATING INCOME
Net sales	557	765	142	–	77	–	–	1,541
Other operating income	5	3	6	–	9	4	-9	18
Internal transactions	–	–	–	–	-9	–	9	–
Total income from external customers	562	768	148	–	77	4	–	1,559
EBITA	57	128	21	–	5	-6	–	205
EBITA margin, %	10.2	16.7	14.8	–	6.5	–	–	13.3
Items affecting comparability	–	–	–	–	–	–	–	–
Adjusted EBITA	57	128	21	–	5	-6	–	205
Adjusted EBITA margin, %	10.2	16.7	14.8	–	6.5	–	–	13.3
Amortisation of intangible assets							–	-21
Operating profit (EBIT)							–	184
Net financial items							–	-16
Profit after net financial items							–	168
Profit before tax							–	168
Tax on profit for the period							–	-40
PROFIT FOR THE PERIOD							–	128
ASSETS	1,376	3,646	538	–	180	125	–	5,865

1 The "Unallocated items" column consists of centrally approved costs for general cen-

tral administration, restructures, acquisitions and IPO costs.

Segments

January-September 2019 SEK million	Vardaga	Nytida	Stendi	Altiden	Klara	Unallocated items1	Group adjust ments	Group
OPERATING INCOME
Net sales	2,578	2,747	2,336	353	223	–	–	8,237
Other operating income	13	11	27	1	34	10	-34	62
Internal transactions	–	–	–	–	-34	–	34	–
Total income from external customers	2,591	2,757	2,364	353	223	11	–	8,299
EBITA	168	392	50	-12	18	-111	–	505
EBITA margin, %	6.5	14.3	2.1	-3.4	8.1	–	–	6.1
Items affecting comparability	–	–	–	–	–	129	–	129
Adjusted EBITA	168	392	50	-12	18	18	–	634
Adjusted EBITA margin, %	6.5	14.3	2.1	-3.4	8.1	–	–	7.7
Amortisation of intangible assets								-91
Operating profit (EBIT)								415
Net financial items								-186
Profit after net financial items								229
Profit before tax								229
Tax on profit for the period								-50
PROFIT FOR THE PERIOD								179
ASSETS	5,352	5,949	2,220	230	182	330	–	14,263

January-September 2018							Group
SEK million	Vardaga	Nytida	Stendi	Altiden	Klara	Unallocated items1	adjust ments	Group
OPERATING INCOME
Net sales	1,664	2,229	395	–	238	1	–	4,526
Other operating income	16	10	9	–	26	9	-26	45
Internal transactions	–	–	–	–	-26	–	26	–
Total income from external customers	1,680	2,239	403	–	238	10	–	4,571
EBITA	125	284	29	–	12	-28	–	423
EBITA margin, %	7.5	12.7	7.3	–	5.0	–	–	9.3
Items affecting comparability	–	–	–	–	–	4	–	4
Adjusted EBITA	125	284	29	–	12	-24	–	427
Adjusted EBITA margin, %	7.5	12.7	7.3	–	5.0	–	–	9.4
Amortisation of intangible assets							–	-58
Operating profit (EBIT)							–	365
Net financial items							–	-28
Profit after net financial items							–	337
Profit before tax							–	337
Tax on profit for the period							–	-74
PROFIT FOR THE PERIOD							–	263
ASSETS	1,376	3,646	538	–	180	125	–	5,865

1 The "Unallocated items" column consists of centrally approved costs for general cen-

tral administration, restructures, acquisitions and IPO costs.

Note 4 Income

Jan-Sep	Vardaga		Nytida		Stendi		Altiden			Klara	Group
SEK million	2019	2018	2019	2018	2019	2018	2019	2018	2019	2018	2019	2018
Own Management	1,506	832	2,388	1,858	2,046	395	39	–	–	–	5,979	3,085
Contract Management	1,073	832	358	371	290	–	314	–	–	–	2,035	1,203
Staffing	–	–		–	–	–	–	–	223	238	223	238
Total	2,578	1,664	2,747	2,229	2,336	395	353	–	223	238	8,237	4,526

Note 5 Business combinations

Aleris's care operations

On 16 October 2018, it was announced that Ambea had agreed to acquire Aleris Omsorg. Aleris Omsorg conducts care operations in Sweden, Norway and Denmark. Ambea acquired 100 per cent of the shares in the Parent Company, Aleris Care AB, on 21 January 2019, following approval from the relevant competition authorities, for a purchase price of approximately SEK 2,600 million on a debt-free, cash-free basis at the transfer date. The acquisition makes Ambea the largest care services provider in Scandinavia. The acquisition of Aleris Omsorg creates a stable platform for future organic growth and significant potential for both direct cost synergies and operational improvements. In addition to direct cost synergies of SEK 90 million and identified operational improvements of SEK 30 million, Ambea expects that additional efficiencies can be realised over the next two to three years.

The acquisition was recognised using the acquisition method, and Aleris's Care Operations have been included in the financial statements for the Ambea Group since 21 January 2019.

Acquired receivables mainly comprise accounts receivable. As these are expected to be paid, in all material respects, the fair value is consistent with the carrying amount. Aleris's customers are predominantly municipalities, whereby credit risk is deemed low.

In the acquisition cost calculation, the provisions line item was adjusted, since additional reserve requirements were identified for acquired units, most of which pertain to disputes related to the legal proceeding regarding social security costs for temporary staff in Norway.

Acquired lease liabilities have been measured at the present value of the remaining lease payments (as defined in IFRS 16) as if the acquired lease was new at the acquisition date. Calculations have been made using the same methodology and assumptions as when the effects of IFRS 16 were estimated for Ambea, and are presented in Note G6 in the 2018 Annual Report. At the acquisition date, right-of-use assets have been measured at the same amount as lease liabilities.

Goodwill arising is primarily attributable to human capital, the Own Management pipeline, a stronger market position and expected synergies. The expected direct cost synergies amount to a total of SEK 90 million per year, of which half will be realised in 2019 and the remaining amount in 2020. Identified operational improvements are expected to amount to SEK 30 million annually, and realised in 2020. Integration costs related to the acquisition are an estimated SEK 110 million, most of which are expected to be recognised in 2019.

Since the acquisition date, Aleris Omsorg has contributed SEK 3,570 million to net sales, and SEK 82 million to profit before tax. If the acquisition had taken place on 1 January 2019, Aleris Omsorg would have contributed SEK 3,852 million to net sales, and SEK 85 million to profit before tax.

Impact of the acquisition of Aleris Omsorg

SEK million	Q1	Q2	Q3	2019 Jan-Sep
Net sales	981	1,320	1,269	3,570
Profit/loss before tax	-1	26	57	82

In June 2019, negotiations on the transfer balance were settled with Aleris, whereby Aleris paid compensation of SEK 5.6 million plus interest to Ambea. The acquisition analysis was completed in the third quarter. Compared with previously published information, the identification of additional reserve requirements led to a higher amount for the provisions line item, and a minor adjustment to the value of customer contracts. The amortisation period of customer contracts is based on the average remaining term of acquired units, and has been determined as six years. Goodwill arising is allocated between the Vardaga, Nytida, Stendi and Altiden segments.

Pusselbiten

On 1 July, Ambea's Nytida business area acquired En bit Extra AB and its subsidiaries (Pusselbiten schools). Pusselbiten provides compulsory comprehensive school education for students with and without special needs, specialising in individuals with an autism spectrum disorder or an intellectual disability. The operations comprise two schools, after-school activities, shortterm supervision and short-term accommodation in accordance with the Swedish Act concerning Support and Service for Persons with Certain Functional Impairments (LSS).

Since the acquisition date, Pusselbiten has contributed SEK 8 million to net sales, and SEK 2 million to profit before tax. About the acquisition had taken place on 1 January 2019, Pusselbiten would have contributed SEK 26 million to net sales, and SEK 4 million to profit before tax.

Net assets of acquired units on the acquisition date

			Fair value recognised
SEK million	Aleris Aleris	Pusselbiten	in the Group
Tangible assets	100	1	101
Intangible assets	277	–	277
Financial assets	40	–	40
Right-of-use assets	1,412	11	1,423
Accounts receivable and other receivables	605	10	615
Cash and cash equivalents	455	6	461
Non-current interest-bearing liabilities	2	–	2
Deferred tax liability	59	–	59
Pension provisions	26	–	26
Other provisions	94	1	95
Lease liabilities	1,412	11	1,423
Accounts payable and other liabilities	735	5	740
Net identifiable assets and liabilities	561	11	572
Group goodwill	2,479	27	2,506
Price of shares	3,041	39	3,080
Cash (acquired)	455	6	461
Purchase consideration (net cash outflow)	2,586	33	2,619
Change in the Group's goodwill
Opening balance, 1 January 2019			4,058
Acquisitions for the year			2,506
Translation difference			22
Closing cumulative cost			6,586

Note 6 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, 55 per cent of the company's interest-rate risk is hedged through interest-rate derivatives.

Derivatives are classified as Level 2 assets in the fair value hierarchy. The change in fair value of the interest rate cap is recognised in other comprehensive income and SEK 0 million was charged against other comprehensive income for the quarter. At 30 September 2019, the value of the derivative was SEK 1 million. Ambea uses the standard report of issuing banks for the market valuation of purchased interest-rate caps. The measurement is based on the bank's standard pricing model and method. The measurement is based on the bank's average price.

Consolidated assets and liabilities measured at fair value

SEK million	30 Sep 2019	30 Sep 2018	31 Dec 2018
Interest rate derivatives	1	0	0
Contingent consideration	1	–	–

Note 7 Pledged assets and contingent liabilities

SEK million	30 Sep 2019	30 Sep 2018	31 Dec 2018
Leased assets	78	79	80
Chattel mortgages	7	14	10
Real estate mortgages	9	25	9
Factoring	2	2	2
Total pledged assets	96	120	101

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	2019 Jul-Sep	2018 Jul-Sep	2019 Jan-Sep	2018 Jan-Sep	2018/2019 Rolling 12 months1	2018 Jan-Dec
Growth/Acquired growth
Growth in net sales (%)	84	4	82	4	61	4
Of which acquired growth (%)	83	6	81	7	42	5
Of which currency effect (%)	0	0	0	0	0	0
Of which organic growth (%)	1	-2	1	-3	1	-1
Operating margin (EBIT)
Net sales	2,843	1,541	8,237	4,526	9,787	6,076
Operating profit (EBIT)	270	184	415	365	479	429
Operating margin, EBIT (%)	9.5	11.9	5.0	8.1	4.9	7.1
EBITA and adjusted EBITA
Operating profit (EBIT)	270	184	415	365	479	429
Amortisation and impairment of intangible assets	27	21	90	58	111	79
EBITA	297	205	505	423	590	508
Items affecting comparability	15	0	129	4	164	39
Adjusted EBITA	312	205	634	427	754	547
Net sales	2,843	1,541	8,237	4,526	9,787	6,076
EBITA margin (%)	10.4	13.3	6.1	9.3	6.0	8.4
Adjusted EBITA margin (%)	11.0	13.3	7.7	9.4	7.7	9.0
EBITDA and adjusted EBITDA
Operating profit (EBIT)	270	184	415	365	479	429
Depreciation, amortisation and impairment of tangible and intangible assets	232	36	626	102	660	135
EBITDA	502	220	1,041	467	1,139	564
Items affecting comparability	15	0	129	4	164	39
Adjusted EBITDA	517	220	1,170	471	1,303	603
Net sales	2,843	1,541	8,237	4,526	9,787	6,076
EBITDA margin	17.7 18.2	14.3 14.3	12.6 14.2	10.3 10.4	11.6 13.3	9.3 9.9
Adjusted EBITDA margin
EBITDA and adjusted EBITDA excluding IFRS 16
Operating profit (EBIT)	270	n/a	415	n/a	479	n/a
Depreciation, amortisation and impairment of tangible and intangible assets	232	n/a	626	n/a	660	n/a
Additional: Rental expenses	-200	n/a	-529	n/a	-529	n/a
Net effect of IFRS 16 on EBITDA	-200	n/a	-529	n/a	-529	n/a
EBITDA excluding effect of IFRS 16	302	n/a	512	n/a	610	n/a
Items affecting comparability	15	n/a	129	n/a	164	n/a
Adjusted EBITDA excluding IFRS 16	317	n/a	641	n/a	774	n/a

SEK million	2019 Jul-Sep	2018 Jul-Sep	2019 Jan-Sep	2018 Jan-Sep	2018/2019 Rolling 12 months1	2018 Jan-Dec
Operating cash flow
Adjusted EBITDA	517	220	1,170	471	1,303	603
Adjustment for non-cash items	4	-5	2	-2	-1	-5
Cash flow from investing activities excl. acquisitions and divestments of subsidiaries	-26	0	-86	-16	-103	-32
Adjustment for cash flow from investing activities related to in creased capacity/growth	23	1	42	9	42	9
Changes in working capital	-200	-137	-258	-15	-170	73
Operating cash flow	318	79	869	447	1,070	648
Cash conversion (%)
Operating cash flow	318	79	869	477	1,070	648
Adjusted EBITDA	517	220	1,170	471	1,303	603
Cash conversion (%)	61.5	35.9	74.3	94.9	82.1	108
Items affecting comparability
Reversal of restructuring and acquisition-related costs	15	–	129	–	164	35
– of which costs included in the line item of consumables	-2	–	0	–	0	–
– of which costs included in the line item of other external costs	9	–	71	–	105	34
– of which costs included in the line item of personnel costs	3	–	53	–	54	1
– of which costs included in the line item of depreciation, amorti sation and impairment	4		4		4
Reversal of income and costs for discontinuation of entire segments	–	–	–	4	–	4
Personal assistance
– of which, income	–	–	–	–	–	–
– of which costs included in the line item of other external costs	–	–	–	–	–	–
– of which costs included in the line item of personnel costs	–	–	–	–	–	–
– of which, profit or loss from participations in Group companies	–	–	–	4	–	4
Total items affecting comparability	15	–	129	4	164	39

Debt/equity ratio SEK million	30 Sep 2019	30 Sep 2018	31 Dec 2018
Non-current interest-bearing liabilities	5,932	465	614
Current interest-bearing liabilities	2,670	1,768	1,441
Total interest-bearing liabilities	8,602	2,233	2,055
Total equity	4,000	2,684	2,707
Debt/equity ratio	2.2	0.8	0.8

Net debt, net debt/Adjusted EBITDA, RTM SEK million	30 Sep 2019	30 Sep 2018	31 Dec 2018
Non-current interest-bearing liabilities	5,932	465	614
Current interest-bearing liabilities	2,670	1,768	1,441
Less: cash and cash equivalents	-215	-80	-62
Net debt	8,387	2,153	1,993
Adjusted EBITDA, RTM	1,303	579	603
Net debt/Adjusted EBITDA, RTM	6.4	3.7	3.3

Equity/assets ratio SEK million	30 Sep 2019	30 Sep 2018	31 Dec 2018
Total equity	4,000	2,684	2,707
Total assets	14,263	5,865	5,762
Equity/assets ratio (%)	28.0	45.8	46.7

Return on equity SEK million	2019 Jul-Sep	2018 Jul-Sep	2019 Jan-Sep	2018 Jan-Sep	2018/2019 Rolling 12 months1	2018 Jan-Dec
Opening equity attributable to shareholders of the Parent Company	3,864	2,556	2,707	2,480	2,684	2,480
Closing equity attributable to shareholders of the Parent Com pany	4,000	2,684	4,000	2,684	4,000	2,707
Average equity attributable to shareholders of the Parent Company	3,932	2,620	3,354	2,582	3,342	2,594
Profit after tax	157	128	179	263	211	295
Return on equity (%)	4.0	4.9	5.3	10.2	6.3	11.4

Profit before and after tax excluding effect of IFRS 16	2019	2019
SEK million	Jul-Sep	Jan-Sep
Profit before tax	201	229
Net effect of IFRS 16 on EBIT	-27	-69
Less: IFRS 16 effect included in the line item of Financial expenses	46	119
Net effect of IFRS 16 on profit before tax	19	50
Profit before tax excluding effect of IFRS 16	220	278
Tax on profit for the period	-44	-50
Less: Effect of IFRS 16 on Deferred tax	-4	-11
Profit after tax excluding effect of IFRS 16		218
Earnings per share before dilution, excluding effect of IFRS 16
Number of shares (000s)	94,505	82,781
Earnings per share before dilution, excluding effect of IFRS 16	1.82	2.63
Earnings per share after dilution, excluding effect of IFRS 16
Number of shares (000s)	94,599	82,874
Earnings per share before dilution, excluding effect of IFRS 16	1.82	2.63

Operating cash flow excluding IFRS 16 SEK million	2019 Jul-Sep	2019 Jan-Sep
Operating cash flow	318	869
Less: Effect of IFRS 16 on EBITDA	-200	-529
Operating cash flow excluding IFRS 16	118	340
Net sales	2,843	8,237
EBITDA margin excluding effect of IFRS 16	10.6	6.2
Adjusted EBITDA margin excluding effect of IFRS 16 (%)	11.1	7.8

Operating profit (EBIT) excluding effect of IFRS 16 SEK million	2019 Jul-Sep	2019 Jan-Sep
Operating profit (EBIT)	270	415
Less: Effect of IFRS 16 included in the line item of depreciation, amortisation and impairment of tangible and intangible assets	173	460
Additional: Rental expenses	-200	-529
Net effect of IFRS 16 on EBIT	-27	-69
EBIT excluding effect of IFRS 16	243	346
EBITA and adjusted EBITA excluding effect of IFRS 16
Operating profit (EBIT)	270	415
Amortisation and impairment of intangible assets	27	90
Less: Effect of IFRS 16 included in the line item of depreciation, amortisation and impairment of tangible and intangible assets	173	460
Additional: Rental expenses	-200	-529
Net effect of IFRS 16 on EBITA	-27	-69
EBITA excluding effect of IFRS 16	270	436
Items affecting comparability	15	129
Adjusted EBITA excluding effect of IFRS 16	285	565
Net sales	2,843	8,237
EBITA margin excluding effect of IFRS 16 (%)	9.5	5.3
Adjusted EBITA margin excluding effect of IFRS 16 (%)	10.0	6.9

Cash conversion excluding IFRS 16 SEK million	2019 Jul-Sep	2019 Jan-Sep
Operating cash flow excluding effect of IFRS 16		340
Adjusted EBITDA excluding effect of IFRS 16	317	641
Cash conversion (%) excluding IFRS 16	37.2	53.0

Free cash flow excluding effect of IFRS 16 SEK million	2019 Jul-Sep	2019 Jan-Sep
Free cash flow	190	401
Less: Effect of IFRS 16 on EBITDA	-200	-529
Change in prepaid rents recognised on the line item of change in operating receivables	2	1
Additional: Interest payments	46	119
Free cash flow excluding effect of IFRS 16	39	-8

Return on equity, excluding effect of IFRS 16	2019	2019
SEK million	Jul-Sep	Jan-Sep
Opening equity attributable to shareholders of the Parent Company	3,864	2,707
Net effect of IFRS 16 on opening equity	24
Opening equity attributable to shareholders of the Parent Company, excluding effect of IFRS 16	3,888	2,707
Closing equity attributable to shareholders of the Parent Company		4,000
Net effect of IFRS 16 on profit after tax		39
Of which cumulative effect in previous quarters
Closing equity attributable to shareholders of the Parent Company, excluding effect of IFRS 16		4,039
Average equity attributable to shareholders of the Parent Company, excluding effect of IFRS 16		3,373
Profit after tax, excluding effect of IFRS 16		218
Return on equity, excluding effect of IFRS 16 (%)		6.5

Net debt, Net debt/Adjusted EBITDA, RTM excluding effect of IFRS 16 SEK million	2019 30 Sep
Non-current interest-bearing liabilities	5,932
Less: non-current lease liabilities pertaining to properties recognised on the Lease liability line	-4,273
Current interest-bearing liabilities	2,670
Less: current lease liabilities pertaining to properties recognised on the Lease liability line	-571
Less: cash and cash equivalents	-215
Net debt excluding effect of IFRS 16	3,543
Adjusted EBITDA, RTM, adjusted for IFRS 16	774
Net debt/Adjusted EBITDA, RTM, excluding effects of IFRS 16	4.6

Equity/assets ratio excluding effects of IFRS 16 SEK million	2019 30 Sep
Total equity, excluding effect of IFRS 16	4,039
Total assets	14,263
Less: right-of-use assets attributable to property	-4,795
Less: Effect of IFRS 16 on deferred tax is recognised on the Deferred tax assets line	-11
Less: Effect of IFRS 16 on prepaid rents is recognised on the Prepaid expenses and accrued income line	1
Total assets excluding effects of IFRS 16	9,458
Equity/assets ratio (%)	42.7

Note 9 Definitions and purpose

The definition of operating cash flow has been changed. As of the interim report for the first quarter of 2019, calculations have been based on Adjusted EBITDA, and cash flows related to increased capacity/growth have been excluded to create better visibility of the underlying cash flows for the growing proportion of Own Management, and for better comparability of the cash conversion rate. The comparative figures have been restated.

The definition of organic growth has changed to also include adjustment for currency. The comparative figures have been restated.

In 2019, alternative performance measures are presented where the effect of IFRS 16 is eliminated to facilitate analysis with the comparative year.

Key financial figures	Definition and calculation	Purpose
Growth (%)	Growth consists of the increase in sales in relation to the comparative period.	This key figure is used to follow up the com pany's sales increase
	The period's increase in net sales/Net sales in the period of comparison
Acquired growth (%)	The period's net sales growth from acquisitions/the comparative period's net sales	The key figure used to monitor the proportion of the company's sales growth generated through acquisitions
Currency effect on growth (%)	The increase in net sales for the period at tributable to change in exchange rates/Net sales in the comparative period	The key figure used to monitor the proportion of the company's sales growth generated through exchange-rate fluctuations
Organic growth (%)	The increase in net sales for the period adjusted for acquisitions, divestments and currency/Net sales in the comparative period	This key figure is used when analysing un derlying sales growth driven by comparable units between different periods
Operating profit (EBIT)	Profit for the period before financial items and tax	The key figure used to monitor the company's profit generated by operating activities.
	Total operating income – Operating expenses	This key figure enables comparisons of profitability between companies/industries
EBITA	Operating profit before amortisation and impairment of intangible assets	This key figure is used to follow up the com pany's profit generated by operating activi
	Operating profit (EBIT) + Amortisation and impairment of intangible assets	ties. This key figure enables comparisons of profitability between companies/industries
Items affecting comparability	Items related to events in the company's operations that impact comparability with profit during other periods. Include:	The key figure of Items affecting compara bility is used to achieve a fair comparison of the underlying development of business
	- Transaction costs attributable to major acquisitions	operations
	- Major re-organisations
Adjusted EBITA	Operating profit before amortisation and impairment of intangible assets adjusted for items from events in the company's oper ations 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. This key figure enables compar
	EBITA + Items affecting comparability	isons of profitability between companies/ industries

Key financial figures	Definition and calculation	Purpose
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. This key figure enables comparisons of profit
	Operating profit (EBIT) + Depreciation, am ortisation and impairment of tangible and intangible assets	ability between companies/industries
Adjusted EBITDA	Operating profit before depreciation/amor tisation and impairment of intangible and tangible assets adjusted for items from such events in the company's operations that affect comparisons with profit from other periods	This key figure is used to follow up the com pany's profit generated by operating activi ties with a fair comparison of the underlying development of the business operations. The key figure enables comparisons of profitabili ty between companies/industries
	EBITDA + Items affecting comparability
Operating cash flow	Total cash flow from operating activities excluding tax, net financial items and items affecting comparability, as well as cash flow from investing activities excluding acquisi tions and divestments of operations	This key figure shows the cash flow from the company's operations, excluding busi ness combinations, company divestments, financing, tax and items affecting compa rability and is used to follow up whether the
	Adjusted EBITDA + Changes in working capi tal + Cash flow from investing activities excl. acquisitions and divestments of subsidiaries + adjustments for cash flow from investing activities related to increased capacity/ growth	company is 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 op erating activities including cash flow from investing activities excluding acquisitions
	Cash flow from operating activities + Cash flow from investing activities excluding ac quisitions 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 adjusted EBITDA	The key figure used as an efficiency measure of the proportion of a company's profit that is converted to cash
	Operating cash flow/Adjusted EBITDA
Net debt	The Group's interest-bearing liabilities ex cluding 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 /Adjusted EBITDA, RTM	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/Adjusted EBITDA, RTM
Return on equity (%)	Return on equity shows the company's return on the capital provided by its owners	This key figure is used to show the returns generated on the capital that shareholders
	Profit for the period/Equity (average equity at the beginning and end of the period)	have invested in the company
Operating profit (EBIT) excluding effect of IFRS 16	Profit for the period before financial items and tax, adjusted for the effect of IFRS 16 EBIT + net effect of IFRS 16 on EBIT	This key figure is used to facilitate a com parison with the preceding period, since IFRS 16 is only applied to the period's financial statements

Key financial figures	Definition and calculation	Purpose
Operating margin (%)	Operating profit as a percentage of net sales.	This 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
Adjusted EBITA excluding effect of IFRS 16	Operating profit before amortisation and impairment of intangible assets adjusted for items from such events in the company's op erations that affect comparisons with profit from other periods, adjusted for the effect of IFRS 16 Adjusted EBITA + net effect of IFRS 16 on EBITA	This key figure is used to facilitate a com parison with the preceding period, since IFRS 16 is only applied to the period's financial statements
EBITDA excluding effect of IFRS 16	Operating profit before depreciation, amor tisation and impairment of intangible and tangible assets, adjusted for the effect of IFRS 16	This key figure is used to facilitate a com parison with the preceding period, since IFRS 16 is only applied to the period's financial statements
Adjusted EBITDA excluding effect of IFRS 16	Operating profit before amortisation and impairment of intangible assets adjusted for items from such events in the company's op erations that affect comparisons with profit from other periods, adjusted for the effect of IFRS 16 Adjusted EBITDA + net effect of IFRS 16 on EBITA	This key figure is used to facilitate a com parison with the preceding period, since IFRS 16 is only applied to the period's financial statements
Operating cash flow excluding effect of IFRS 16	Total cash flow, adjusted for the effects of IFRS 16, from operating activities excluding tax, net financial items and items affecting comparability as well as cash flow from in vesting activities excluding acquisitions and disposal of units Adjusted EBITDA + Changes in working capi tal + Cash flow from investing activities excl. acquisitions and divestments of subsidiaries + adjustments for cash flow from investing activities related to increased capacity/ growth	This key figure is used to facilitate a com parison with the preceding period, since IFRS 16 is only applied to the period's financial statements
Cash Conversion (%) excluding effect of IFRS 16	Cash conversion as a percentage is defined as operating cash flow divided by Adjusted EBITDA, adjusted for the effect of IFRS 16 Operating cash flow excluding the effect of IFRS 16/EBITDA excluding the effect of IFRS 16	This key figure is used to facilitate a com parison with the preceding period, since IFRS 16 is only applied to the period's financial statements
Free cash flow excluding effects of IFRS 16	Total cash flow from operating activities as well as cash flow from investing activities excluding acquisitions and divestments of operations, adjusted for the effects of IFRS 16 Free cash flow – net effect of IFRS 16 on EBITDA – Change in operating receivables/ liabilities attributable to IFRS 16 + interest payments attributable to IFRS 16	This key figure is used to facilitate a com parison with the preceding period, since IFRS 16 is only applied to the period's financial statements
Net debt excluding effect of IFRS 16	The Group's interest-bearing liabilities ex cluding pension provisions adjusted for cash and cash equivalents Net debt – lease liabilities related to proper ties	This key figure is used to facilitate a com parison with the preceding period, since IFRS 16 is only applied to the period's financial statements

Key financial figures	Definition and calculation	Purpose
Net debt / Adjusted EBITDA, RTM ex cluding effects of IFRS 16	Net debt/Adjusted EBITDA excluding the ef fects of IFRS 16 is a measure of the debt/eq uity ratio defined as the closing balance for net debt, adjusted for the effects of IFRS, in relation to rolling adjusted EBITDA, adjusted for the effects of IFRS 16 Net debt excluding the effect of IFRS 16/ Adjusted EBITA excluding the effect of IFRS 16 RTM	This key figure is used to facilitate a com parison with the preceding period, since IFRS 16 is only applied to the period's financial statements
Profit before tax excluding effect of IFRS 16	Profit before tax, adjusted for the effects of IFRS 16	This key figure is used to facilitate a com parison with the preceding period, since IFRS
	Profit before tax + net effect of IFRS 16 on profit before tax	16 is only applied to the period's financial statements
Profit after tax excluding effect of IFRS 16	Profit after tax, adjusted for the effects of IFRS 16	This key figure is used to facilitate a com parison with the preceding period, since IFRS
	Profit before tax excluding the effect of IFRS 16 + effect of IFRS 16 on deferred tax	16 is only applied to the period's financial statements
Earnings per share before dilution, excluding effect of IFRS 16	Earnings per share before dilution, excluding the effect of IFRS 16 on profit for the year	This key figure is used to facilitate a com parison with the preceding period, since IFRS
	Profit after tax excluding the effect of IFRS 16 /Average number of shares before dilution	16 is only applied to the period's financial statements
Earnings per share after dilution, ex cluding effect of IFRS 16	Earnings per share before dilution, excluding the effect of IFRS 16 on profit for the year and equity	This key figure is used to facilitate a com parison with the preceding period, since IFRS 16 is only applied to the period's financial
	Profit after tax excluding the effect of IFRS 16 /Average number of shares after dilution	statements
Return on equity, excluding effect of IFRS 16	Profit after tax excluding the effect of IFRS 16 /Average equity attributable to shareholders of the Parent Company, excluding the effect of IFRS 16	This key figure is used to facilitate a com parison with the preceding period, since IFRS 16 is only applied to the period's financial statements
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 total assets financed with equity and enables an analysis of the company's long-term finan
	Equity/Total assets	cial strength and ability to withstand losses
Comparable units	Comparable units include units that have been in Ambea's operation for at least 13 months.	This key figure is used to show the EBITA margin in units with a stable status to com pare with the total EBITA margin, which also includes start-up units.

Quality management in the third quarter of 2019

• The quarter was characterised by the implementation of Vardaga's and Nytida's procedures and concepts in former Aleris operations. The aim is to achieve the same high quality with a similar cost structure in all operations. The process is on track and expected to continue until the end of the year.
• In the third quarter, Ambea's Quality and HR Flash score¹ rose from 5.9 to 7.2 in Vardaga and from 6.2 to 6.7 in Nytida (max. 10). The increase was partly due to adjustment of the index to exclude new operations in their first six months of operations.
• In Vardaga's residential facilities, which are considered highrisk in terms of quality, related-party surveys were carried out. More than half of the respondents stated that they appreciated the approach of the employees, while just over one quarter thought that the level of activity in the facilities could be developed. The questions were open-ended and the respondents were asked to comment on what they thought was positive, as well as what could be improved.
• At Nytida's HVB homes for children and youth, the new treatment model Step by step has now been introduced. The intervention is a cognitive behavioural therapy (CBT) technique based on presence, transparency and measurement. Step by step follows a clear process with specific methodological steps.
• In Stendi, the new central quality department has continued it work with the integration of Ambea's quality standards and management system.
• Of Altiden's latest Care Receiver Survey in nursing homes, 98.2 per cent say that they would recommend Altiden to other people, compared with 97.3 per cent in the survey in the second quarter. A self-assessment in Altiden achieved an overall score of 1.67 of a possible 2.0. Vardaga, Nytida and Stendi will conduct self-assessments in the fourth quarter.

1 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 in Nytida and Vardaga every month.

Awards and distinctions

• • High-quality meals in Vardaga: For the third consecutive year, Vardaga's nursing home in Täby, Silverpark, was awarded Senior Mealtime of the Year by the White Guide. In addition, Hagdahlsakademien (the Hagdahl Academy) in Östergötland awarded its Äldrematpris (Senior Food Prize) 2020 to Vardaga's Gröna gården facility in Linköping for the best food for senior citizens in the county.
• • Gender-equality step forward: Ambea is one of the stock exchange's top seven gender-equality companies according to the Allbright Foundation's latest ranking for 2019. Listed companies are ranked according to the proportion of women in their Group management team, in line positions and on the Board. In 2018, Ambea was ranked 29th, and has therefore taken a giant step forward to become the best care company on the list.

Vardaga has once again been recognised for its highquality meals.

The quarter in figures

• The share of serious deviations in the third quarter (grade 4) was 0.09 per cent, compared with 0.17 per cent in the second quarter. In both Stendi and Altiden, one (1) grade-4 deviation was reported.
• No Lex Sarah reports were lodged. Three Lex Maria reports were lodged by Vardaga. The IVO has not yet issued a decision. One Lex Maria report was lodged by Nytida, but has now been closed without any remarks. Two Lex Sarah reports were lodged in the preceding quarter by Vardaga, and one Lex Maria report was lodged by Nytida. All decisions have been received and the cases have been closed without any remarks.

• Individual complaints investigated by the IVO: Six different complaints were submitted in relation to Vardaga's operations. The IVO has issued a decision for one of these complaints and closed the case with some remarks. The IVO has not yet issued a decision for the other five complaints. No complaints were submitted to the IVO in regard to Nytida's operations. Five different complaints were lodged in the preceding quarter.

• Supervisions/inspections:

• The IVO conducted 20 inspections/inspections of Nytida's operations during the quarter. To date this year, a total of 48 supervisions have taken place and 34 decisions have been received. 28 cases were closed without any remarks and six were closed with some comments.
• In Vardaga, three supervisions/inspections were carried out, but no decisions have yet been received. To date this year, the IVO has carried our six inspections and decisions have been received for three of these cases, two with remarks and one without any remarks.
• In Stendi various operational areas, a total of 26 inspections were carried out by authorities during the period. Decisions have been received for 16 cases, of which 15 are without any remarks and one with remarks.
• In Altiden, authorities conducted nine inspections, all with satisfactory results and only minor deviations.