Ambea — Interim / Quarterly Report 2022

May 4, 2022

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

Interim report January-March 2022

Strong quarter with favourable growth

First quarter January-March

• Net sales rose 13 per cent to SEK 3,080 million (2,727). Organic growth was 6 per cent, acquired growth was 5 per cent and the exchange rate effect was 2 per cent.
• Operating profit (EBIT) totalled SEK 167 million (125).
• EBITA rose 28 per cent to SEK 195 million (152), representing a margin of 6.3 per cent (5.6).
• Profit for the period totalled SEK 66 million (46).
• Earnings per share were SEK 0.70 (0.49) before and after dilution.
• Cash conversion was 75.8 per cent (77.5).
• Free cash flow totalled SEK 193 million (172).

Significant events

• Nytida acquired control of Christinagården i Lindesberg and its subsidiary, Yxe Herrgård, on 1 February. Vardaga acquired control of Hannas Hemtjänst on 1 March. Read more on pages 9 and 10.
• During the quarter, Vardaga opened three new residential facilities with a total of 247 beds.
• After the end of the quarter, Nytida acquired the Alternatus Familia foster care service provider, and Klara completed the acquisition of SkolPool. Control of both companies was acquired in the second quarter of 2022. Read more about the acquisitions on pages 9 and 13.

Consolidated key figures

	2022	2021			2021
SEK million	Jan-Mar	Jan-Mar	∆%	R12	Jan-Dec
Net sales	3,080	2,727	13	11,832	11,478
EBITA*	195	152	28	754	712
Operating margin, EBITA (%)*	6.3	5.6		6.4	6.2
Adjusted EBITA*	195	152	28	899	857
Operating margin, adjusted EBITA (%)*	6.3	5.6		7.6	7.5
Operating profit, EBIT	167	125	34	640	598
Operating margin, EBIT (%)*	5.4	4.6		5.4	5.2
Profit after tax	66	46	43	256	237
Earnings per share before dilution, SEK	0.70	0.49	43	2.71	2.51
Earnings per share after dilution, SEK	0.70	0.49	43	2.71	2.51
Cash conversion (%)*	75.8	77.5		95.4	95.7
Free cash flow*	193	172	12	1,160	1,139

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

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

Strong quarter with favourable growth

Despite troubling international events, demand for our services remains favourable and our employees continue to deliver high-quality care to our care receivers. During the first quarter of the year, the focus was on growth and we completed several acquisitions, opened new residential facilities and started large management contracts.

Occupancy continues to increase in our nursing homes and we opened three new units in Vardaga during the quarter, two of which were dormant during the pandemic. Both Nytida and Altiden also started new managementcontracts. During the period, both Nytida and Vardaga completed acquisitions that strengthen and complement their operations, and after the end of the quarter, we made additional acquisitions in Nytida and Klara. Overall, we delivered a strong quarter, which is contributing to the company's growth target and is a trend that will enable us to increase investments in the development of our employees.

Organic and acquired growth

In the first quarter, net sales rose 13 per cent to SEK 3,080 million (2,727). EBITA rose 28 per cent to SEK 195 million (152).

Demand for Nytida's services remains stable. During the quarter, we acquired control of Christinagården and Yxe Herrgård, which provide LSS and rehabilitation services for about 100 care receivers. After the end of the period, Nytida acquired Alternatus Familia with capacity for about 35 foster care placements. At the beginning of the year, Nytida also started up a large management contract in Stockholm and opened three new residential LSS facilities with capacity for 18 care receivers.

Demand for elderly care remains favourable in Sweden. Vardaga opened three residential facilities during the quarter – two in Gothenburg, and one in Täby. Vardaga also expanded its home-care operations in Stockholm by acquiring Hannas Hemtjänst with approximately 200 customers.

Altiden succeeded in winning tenders and new management contracts. During the quarter, Altiden took over the management of Lindehaven, a newly opened nursing home in Frederiksberg Municipality with beds for 125 care receivers. We can also report that our first residential facility under own management in Holte, north of Copenhagen, is now fully occupied. We are looking forward to opening our second residential facility under own management in early 2023, which is currently under construction in Greve, south of Copenhagen.

"During the period, both Nytida and Vardaga completed acquisitions that strengthen and complement their operations"

Stendi continued its efforts to strengthen profitability, which included capacity adjustments and staffing cutbacks. During the quarter, the units were impacted by strict quarantine rules and high levels of sickness absence due to the ongoing pandemic, which means that the earnings effect of the programme will be gradually visible from the second half of 2022.

After the end of the quarter, our Klara division alsocompleted a strategic acquisition of the leading provider of student health services, SkolPool. The company provides staffing solutions and student health services with care provider responsibility so that schools can focus on education. Klara, which has previously provided similar services, will now take a leading position in the growing market for student health services.

Innovation to meet new needs

Scandinavian countries are facing the challenge of handling a growing share of older people while the number of working age people is falling. This means that fewer people will be supporting our welfare system. In Sweden, the government estimated in 2019 that municipalities and regions would accumulate a deficit of SEK 90 billion by 2026 if welfare services were to maintain the same quality as today, with the current tax rate and level of public spending. The use of digitisation and welfare technology that could improve the efficiency of care is still limited, and there are too many conflicting regulatory requirements that are hindering innovation. To meet the growing needs and expectations of care receivers and their family members, however, this development needs to go faster. Ambea is pursuing several innovation and digitisation initiatives with the aim of improving the quality of care and reducing administration. We will continue to work actively and invest to drive efficiencies forward, and to improve health and safety for our employees.

Enough care for everyone

It has been an intense start to the year with a continued pandemic and high sick leave rates, but also many start-ups and acquisitions. Due to the hard work of our employees,

their focus on our care receivers and the company's strong operative leadership, we were able to meet the challenges. Moreover, we are all distressed and concerned about the war in Ukraine. Ambea will do whatever we can to reduce the human suffering, to take responsibility by redirecting our purchasing and by helping the authorities and municipalities to deal with the influx of refugees to the extent our services and support may be needed.

The macroeconomic impacts of the pandemic and now the war are also affecting Ambea. We expect increased costs in a number of areas that are not fully, or as yet, offset by our index-linked agreements with municipalities. This will have some degree of negative impact on earnings, despite ongoing efforts to mitigate the effects.

Despite troubling international events, we are looking forward to the rest of the year with confidence and to creating enough secure and sustainable care for everyone together with our clients.

Mark Jensen

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

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

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

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

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

Gothenburg. During the quarter, we opened two new nursing home in Gothenburg – Villa Kviberg and Villa Höjden. The properties have been furnished in accordance with Vardaga's award-winning residential concept. The décor combines function with Nordic design. The colours and fixtures are adapted for the ageing eye – based on research and evidence-based practice – and also designed to facilitate wayfinding for people with dementia.

Sustainability and quality management in the first quarter

Support for Ukraine

We are all distressed and concerned about the war in Ukraine. To reduce the human suffering, both Ambea and our employees have made donations to The Red Cross, SOS Barnbyar and UNHCR, which have operations across Ukraine and in neighbouring countries. We have also reviewed our purchasing processes and suspended all purchases from around ten suppliers of goods and services that have chosen to remain active in Russia. To provide safe and secure housing for refugees, Ambea has been in contact with the authorities in all of our countries and offered the use of units that have not yet been deployed as temporary accommodation. No authority or municipality has had

such a need as yet, but we are ready should the need arise. Ambea also has good experience from the previous wave of refugees when it comes to creating work experience placements and workplace training that make integration easier and support entry into the labour market, and we will scale up these efforts again as soon as the regulatory frameworks are in place for Ukrainian refugees.

More green fuel and electric cars

To reduce our environmental impact, we have transitioned to Hydrotreated Vegetable Oil (HVO) fuel in our operations, which reduces CO2 emissions by approximately 90 per cent compared with fossil diesel. This applies to vehicles with diesel engines where the vehicle manufacturer has approved the use of this fuel in their cars. While HVO is more expensive than diesel, Ambea has prioritised this transition to reduce our emissions and fossil-fuel dependency. We have also adopted a new policy that makes the transition to fully electric cars an explicit first choice. The process of installing charging points at our residential facilities and procuring a suitable electric car scheme has commenced, with implementation from the fourth quarter of this year. We are planning to replace about 60 per cent of our car fleet between Q4 2022-Q4 2023, but also want to be finished before then.

Reports and quality inspections during the quarter

SWEDEN

IVO inspections: The IVO performed 26 inspections in the first quarter. The IVO performed four inspections in Vardaga. One case was closed without any remarks. Decisions are pending for the remaining cases. The IVO completed 22 inspections in Nytida during the quarter. Decisions have been issued for eight of these cases and three were closed with remarks. Decisions are still pending for the IVO's inspections of other units in Nytida. The Swedish Schools Inspectorate also issued decisions following three inspections in Nytida, and all cases were closed without any remarks.

Lex Sarah: Seven Lex Sarah cases were lodged, five by Nytida and two by Vardaga. Decisions have been issued for three of the cases lodged by Nytida, which were closed without any need for further action. Decisions are pending for the remaining cases.

Lex Maria: One Lex Maria case was lodged by Vardaga. A decision has been issued and the case was closed without any remarks.

Individual complaints:Four individual complaints are under investigation by the IVO, all in Vardaga. Decisions are pending for all cases.

NORWAY

Regulatory inspections based on quality management: 39 inspections of Stendi's children's units were carried out and three resulted in demands for measures.

DENMARK

Regulatory inspections based on quality management: Two regulatory inspections were carried out in Altiden during the quarter. One unit received remarks with demands for measures, and a decision is pending for the other inspection.

Ambea's key figures for social sustainability

	TARGET	OUTCOME Q1 2022	COMMENTS
Ambea's Quality Index An aggregated index of six quality and HR metrics for the entire group. Scale of 1–10	>7.50	7.33	Slightly higher outcome in Q1 compared with Q4 2021 (7.29).
PARTIAL REPORT OF AMBEA'S QUALITY INDEX
1) Perceived care The care receiver's view of our care and service. Scale of 1–100	>85%	89.5	No new care receiver survey was conducted in Q1. The results are from the preceding quarter.
2) Employee satisfaction Employee satisfaction surveys are carried out on a regular basis during the year to measure satisfac tion and engagement. Scale of 0–100	>75	72	The outcome for the quarter remains unchanged.
3) Leadership Index The employee's view of leadership in Ambea. Scale of 0–100	>80	72	The Leadership Index survey is conducted twice annu ally with an in-depth questionnaire, where employees evaluate their line manager based on Ambea's priori tised leadership qualities. The Q1 outcome was slightly higher than the previous measurement (71) for Q4.
4) Recommendation of Ambea Whether the employee would recommend Ambea as an employer. eNPS scale -100 – +100	>+20	+18	The survey is carried out twice annually. The last survey was in Q4. New survey in Q2.
5) Internal control Control and follow-up of a unit's compliance with the quality management system. Scale of 0–2	>1.85	1.86	Unchanged value in Q1 compared with Q4 2021. No new survey was carried out during the quarter, except in Altiden. New survey in May for the other divisions.
6) Improvement Index Improvements implemented and documented in the units. Scale of 0–10	>7.50	8.18	Higher outcome in Q1 compared with Q4 2021 (7.56).

We prioritise five of the UN Sustainable Development Goals

Good Health and Well-being

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

Quality Education

Our training organisation Lära, provides continuous training for employees of today and tomorrow.

Affordable and Clean Energy

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

Decent work and economic growth

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

Responsible Consumption and Production Ambea creates modern residential facilities with lower environmental impacts. By keeping our stocks down, we only consume as much as we need.

READ MORE about our Sustainable Development Goals in the Annual Report.

Group

First quarter

Net sales

Net sales rose 13 per cent to SEK 3,080 million (2,727). Organic growth was 6 per cent, acquired growth was 5 per cent and the exchange rate effect was 2 per cent.

Net sales in Own Management amounted to SEK 2,337 million (2,052). The yearon-year sales growth was due to completed acquisitions, higher rates of occupancy and start-up units.

Net sales in Contract Management amounted to SEK 666 million (608). The year-on-year sales growth was attributable to start-ups of previously won contracts in Vardaga, Nytida and Altiden.

Net sales in Staffing rose 13 per cent to SEK 76 million (67).

Earnings

EBIT rose 34 per cent to SEK 167 million (125), representing a margin of 5.4 per cent (4.6).

EBITA rose 28 per cent to SEK 195 million (152). The EBITA margin was 6.3 per cent (5.6). The year-on-year increase was due to higher occupancy in Vardaga and completed structural changes in Altiden.

Net financial items

Net financial expense was SEK -84 million (-67) for the quarter. Of this amount, SEK -65 million (-53) pertained to interest on a lease liability, SEK -16 million (-16) to interest and financial expenses/income, and SEK -3 million (2) to exchange rate fluctuations.

Income tax

Tax expense for the period was SEK 17 million (12), corresponding to an effective tax rate of 21 per cent (20).

Profit for the period

Profit for the period totalled SEK 66 million (46), corresponding to earnings per share of SEK 0.70 (0.49) before dilution and SEK 0.70 (0.49) after dilution.

Net sales by contract model January-March 2022

Earnings and margin trend

Cash flow

SEK million	2022 Jan-Mar	2021 Jan-Mar	R12	2021 Jan-Dec
EBITDA	451	357	1,744	1,650
Adjustment for non-cash items	-8	-3	126	131
Change in working capital	-86	-71	-166	-152
Cash flow from investments in fixed assets	-27	-11	-87	-70
Operating cash flow, including investments to increase capacity	330	272	1,617	1,559
Net interest paid	-85	-65	-316	-296
Tax paid	-53	-37	-141	-125
Free cash flow	193	171	1,160	1,139
Acquisition/disposal of shares and participations	-89	-64	-213	-189
Cash flow from financing activities	-138	-85	-934	-882
Other	–	–	–	–
Cash flow for the period	-34	22	13	68
Operating cash flow, excluding effect of IFRS 16	49	47	546	544
Free cash flow, excluding effect of IFRS 16	-24	-2	337	359

Free cash flow for the quarter was SEK 193 million (171). The year-on-year increase in free cash flow was mainly due to improved earnings in the units.

Financial position

	2022	2022	2021	2021	2021	2021
	31 Mar	31 Mar	31 Mar	31 Mar	31 Dec	31 Dec
SEK million		excl. IFRS 16		excl. IFRS 16		excl. IFRS 16
Net interest-bearing debt*	10,648	2,706	8,845	2,660	9,821	2,547
Rolling 12 months adjusted EBITDA*	1,889	815	1,644	813	1,794	773
Net debt/Rolling 12 months adjusted EBITDA	5.6	3.3	5.4	3.3	5.5	3.3

At 31 March 2022, net interest-bearing debt amounted to SEK 10,648 million (8,845). Excluding the effect of IFRS 16, indebtedness amounted to SEK 2,706 million (2,660), or 3.3 times (3.3) 12-months adjusted EBITDA.

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

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

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

The quarter

Net sales rose 5 per cent year-on-year to SEK 963 million (919).

Net sales in Own Management amounted to SEK 785 million (764). Sales were positively impacted by start-up units.

Net sales in Contract Management amounted to SEK 178 million (155). The 15-per cent increase was due to the net effect between start-ups and the termination of previous contracts.

Adjusted EBITA rose 4 per cent to SEK 119 million (114). Earnings were positively impacted by new management contracts.

The adjusted EBITA margin was 12.4 per cent (12.4).

During the quarter, Nytida acquired control of Christinagården and Yxe Herrgård. The acquisition comprises two psychiatric residential treatment facilities, including halfway and transitional living apartments, four residential LSS facilities and one day services unit. The units have capacity for 116 care placements and just over 100 employees in Lindesberg and Nora, with sales of SEK 100 million. Control was transferred on 1 February 2022.

After the end of the quarter, Nytida acquired Alternatus Familia, which provides foster care services in Sweden. The acquisition comprises capacity for 35 foster care placements and sales for the 2020/2021 financial year amounted to SEK 24 million. Control was transferred on 2 May 2022.

Adjusted EBITA margin RTM %

SEK million	2022 Jan-Mar	2021 Jan-Mar	∆%	R12	2021 Full-year
Net sales	963	919	5	3,768	3,723
Adjusted EBITA*	119	114	4	534	529
Operating margin, adjusted EBITA (%)*	12.4	12.4		14.2	14.2

* Alternative performance measures.

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

The quarter

Vardaga's net sales rose 15 per cent year-on-year to SEK 992 million (859).

Net sales in Own Management amounted to SEK 664 million (554), up 20 per cent due to a higher rate of occupancy and newly opened units.

Net sales in Contract Management amounted to SEK 328 million (305). The 8-per cent increase was due to start-ups of previously won contracts. During the period, Vardaga's net difference between gains and losses on the allocation of new contracts was SEK -15 million.

Adjusted EBITA rose 96 per cent to SEK 49 million (25). A higher rate of occupancy had a positive impact on earnings.

The adjusted EBITA margin was 4.9 per cent (2.9). The EBITA margin for mature units increased 0.8 percentage points, which was mainly attributable to higher rates of occupancy.

During the quarter, Vardaga acquired control of Hannas Hemtjänst, which offers home care in central Stockholm and has about 50 employees. In 2021, sales amounted to SEK 33 million. Control was transferred on 1 March 2022.

Adjusted EBITA margin RTM %

Mature units (opened before 2021)**

SEK million	2022 Jan-Mar	2021 Jan-Mar	∆%	R12	2021 Full-year
Net sales	992	859	15	3,797	3,664
Adjusted EBITA*	49	25	96	223	198
Operating margin, adjusted EBITA (%)*	4.9	2.9		5.9	5.4
Operating margin, adjusted EBITA mature units (%)*	8.0	7.2		9.8	9.7

* Alternative performance measures.

** As of Q1 2022, all units except for residential facilities under own management that opened after 2020 are defined as mature. Previously, residential facilities under own management and management contracts that opened between 2019–2021 were excluded.

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

The quarter

Net sales rose 5 per cent to SEK 765 million (731). Sales declined 2 per cent in local currency.

Net sales in Own Management amounted to SEK 702 million (674). Sales declined 3 per cent in local currency. The decrease in local currency was due to terminated units and a lower rate of occupancy.

Net sales in Contract Management amounted to SEK 63 million (57). Sales rose 3 per cent in local currency due to indexed contracts.

Adjusted EBITA was SEK 12 million (15). Earnings was negatively impacted by high sick leave, and lower staffing efficiency due to lower rates of occupancy. Continued capacity adjustments were completed during the quarter.

The adjusted EBITA margin was 1.6 per cent (2.1).

2022 2021 2021 SEK million Jan-Mar Jan-Mar ∆% R12 Full-year Net sales 765 731 5 2,973 2,939 Adjusted EBITA* 12 15 -20 108 112 Operating margin, adjusted EBITA (%)* 1.6 2.1 3.6 3.8

* Alternative performance measures.

Adjusted EBITA margin RTM %

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

The quarter

Net sales rose 87 per cent to SEK 283 million (151). Sales rose 81 per cent in local currency.

Net sales in Own Management amounted to SEK 186 million (60). The sales growth was attributable to acquisitions and new residential start-ups.

Net sales in Contract Management amounted to SEK 97 million (91), where the increase was attributable to new elderly care contracts, but offset by terminated home care contracts.

Adjusted EBITA was SEK 14 million (1). Adjusted EBITA was positively impacted by completed acquisitions and an earn-out revaluation of SEK 7 million.

The adjusted EBITA margin was 4.9 per cent (0.7).

SEK million	2022 Jan-Mar	2021 Jan-Mar	∆%	R12	2021 Full-year
Net sales	283	151	87	1,014	882
Adjusted EBITA*	14	1		25	13
Operating margin, adjusted EBITA (%)*	4.9	0.7		2.5	1.5

* Alternative performance measures.

Adjusted EBITA margin RTM %

Klara is one of the leading providers of staffing solutions for social care in Sweden. We are an authorised staffing company and ISO certified. With personal service and long experience in the industry, we provide staffing and sustainable solutions that create value for both public and private clients. We offer ambulatory care teams, student health services with care provider responsibility and other care staff in Sweden.

The quarter

Net sales rose 19 per cent to SEK 106 million (89). The increase was due to a positive trend in all of Klara's business units, but most of all in nurse staffing, rehabilitation services and ambulatory care teams. Sales were driven by more initiatives year-on-year.

Adjusted EBITA was SEK 8 million (6), representing a margin of 7.5 per cent (6.7). Positive trend for all of Klara's business segments. The increase in demand enabled higher staff efficiency with stronger margins.

After the end of the quarter, Klara acquired the SkolPool company in Sweden. SkolPool was founded in 2009 and provides both staffing services and total solutions with care provider responsibility for municipal and independent schools. The service offering includes nurses, school doctors, psychologists, counsellors, career advisors and special education teachers. SkolPool currently holds a strong position in the student health market and can be found all over Sweden. For the 2020/2021 financial year, SkolPool Sverige AB's sales amounted to SEK 68 million. Control was transferred on 2 May 2022.

Adjusted EBITA margin RTM %

SEK million	2022 Jan-Mar	2021 Jan-Mar	∆%	R12	2021 Full-year
Net sales	106	89	19	384	368
Adjusted EBITA*	8	6	33	29	27
Operating margin, adjusted EBITA (%)*	7.5	6.7		7.6	7.3

* Alternative performance measures.

Operational key figures

SEK million	2021 Q1	2021 Q2	2021 Q3	2021 Q4	2022 Q1
Ambea
Number of beds and placements in operation under own management on the closing date	9,170	9,464	9,489	9,523	9,888
Number of beds and placements opened under own management (RTM)	531	454	416	316	565
Number of beds and placements under own management under construction	1,916	1,706	1,736	1,516	1,287
Net won/lost management contracts, SEK million*	165	45	-91	-57	-20
Nytida
Number of beds in operation under own management	5,280	5,260	5,284	5,290	5,427
Number of beds opened under own management (RTM)	123	71	101	53	66
Number of beds and placements under own management under construction	140	122	92	92	86
Net won/lost management contracts, SEK million*	2	61	–	2	-5
Vardaga
Number of beds and placements in operation under own management	2,884	2,998	3,004	3,064	3,311
Number of beds and placements opened under own management (RTM)	395	298	238	180	427
Number of beds under own management under construction	1,629	1,509	1,569	1,355	1,108
Net won/lost management contracts, SEK million*	–	-16	–	-59	-15
Stendi
Number of beds in operation under own management	843	807	802	765	746
Number of beds opened under own management (RTM)	–	–	–	–	–
Number of placements under own management under construction	–	–	–	–	–
Net won/lost management contracts, SEK million*	–	–	-91	–	–
Altiden
Number of beds and placements in operation under own management	163	399	399	404	404
Number of beds opened under own management (RTM)	13	85	77	77	72
Number of beds and placements under own management under construction	147	75	75	75	93
Net won/lost management contracts, SEK million**	163	–	–	–	–
Announced home care contracts to be retaken	-88	–	–	-39	–

* Includes management contracts to be retaken.

** Excluding announced home care contracts to be retaken.

Other events

Legal proceeding about costs for temporary staff in Norway

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

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

Legal dispute in Norway

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

Dispute with the Swedish Tax Agency

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

Related-party transactions

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

Events after the end of the quarter

After the end of the quarter, Nytida acquired the Alternatus Familia company, which provides foster care services in Sweden. In addition, Klara acquired the SkolPool company, which provides staffing services and is a market leader in student health services. Control of both companies has now been acquired. Read more about the acquisitions on pages 9 and 13.

Seasonal variations

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

Weekends and public holidays reduce Ambea's profitability due to higher personnel costs for inconvenient working hours. Most of the public holidays in countries where the company operates normally fall in the second quarter. In some years,

Easter may fall in the first quarter and then affect its profitability. Christmas and New Year affect the first and fourth quarters.

The company's personnel costs are affected in a similar manner when employees take out their holidays. For example, the company is most profitable in the third quarter, as employees usually take their holidays during July and August and therefore receive holiday pay that is continuously accrued throughout the year. Costs also tend to be lower in the summer months 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 13,955 (13,117), and the increase was mainly due to acquisitions.

Risks and uncertainties

Ambea is exposed to a variety of risks and attaches great importance to continuously analysing, minimising and managing these risks. The risk assessment is also a key element of the annual strategy process, where risks in relation to the company's ability to achieve its financial targets and strategic ambitions are specifically evaluated. Ambea has identified the following risks: brand risks, industry and market risks, compliance and legal risks, operational risks and financial risks. For a description of these risks and how they are managed, refer to pages 50–51 of the 2021 Annual Report.

Key judgements and estimates

For information about key judgements and estimates in this interim report, refer to Note K32 in the company's 2021 Annual Report.

Other information

This report has not been audited.

The Board of Director's assurance

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

Stockholm, 3 May 2022

Lena Hofsberger Chair of the Board

Daniel Björklund Liselott Kilaas Board member Board member

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

Employee representative Employee representative Employee representative

Patricia Briceño Charalampos Kalpakas Magnus Sällström

Mark Jensen President and CEO

Presentation of the first quarter of 2022

Ambea will hold a presentation for the financial market, with the possibility to participate by teleconference, at 10:00 a.m. CET on Wednesday, 4 May 2022. The presentation will be held in English, and be available as a webcast at ambea.se

Call-up information

To make sure that the hook-up to the conference call works, please call at least ten minutes before the conference call's start time to register, or use the code: 1689025.

Phone numbers

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

Contact

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

Forthcoming report occasions

Annual General Meeting	12 May 2022
Q2 interim report for 2022	18 August 2022
Q3 interim report for 2022	3 November 2022

Consolidated earnings in summary

SEK million	2022 Jan-Mar	2021 Jan-Mar	R12	2021 Jan-Dec
Operating income
Net sales	3,080	2,727	11,832	11,478
Other operating income	43	48	190	195
Total operating income	3,123	2,775	12,022	11,673
Operating expenses Consumables	-101	-83	-437	-419
Other external costs	-351	-303	-1,454	-1,405
Personnel costs	-2,219	-2,030	-8,387	-8,199
Depreciation, amortisation and impairment of fixed assets	-284	-232	-1,104	-1,052
Other operating expenses	-1	-1	0	0
Operating expenses	-2,956	-2,650	-11,382	-11,075
Operating profit	167	125	640	598
Financial income	0	1	0	1
Financial expenses	-84	-67	-319	-302
Net financial items	-84	-67	-319	-301
Profit after net financial items	83	59	321	297
Profit before tax	83	59	321	297
Tax on profit for the period	-17	-12	-65	-60
Profit for the period	66	46	256	237
Profit for the period attributable to shareholders of the Parent Company	66	46	256	237
Earnings per share before dilution, SEK	0.70	0.49	2.71	2.51
Earnings per share after dilution, SEK	0.70	0.49	2.71	2.51

Consolidated statement of comprehensive income in summary

SEK million	2022 Jan-Mar	2021 Jan-Mar	R12	2021 Jan-Dec
Profit for the period after tax	66	46	256	237
Other comprehensive income, items not transferable to profit or loss
Remeasurement of defined-benefit pension plans	–	–	24	24
Tax related to remeasurement of defined-benefit pension plans	–	–	-5	-5
Total items not transferable to profit or loss	–	–	19	19
Other comprehensive income, items transferable to profit or loss
Translation differences	47	68	43	63
Hedging of net investments in foreign operations	-22	-31	-24	-32
Cash flow hedges	6	-4	0	7
Cash flow hedge reserve	19	-2	21	1
Incentive programmes	0	1	2	2
Remeasurement of tenant-owned apartments	0	0	8	8
Tax	-1	7	-2	6
Total items transferable to profit or loss	49	39	48	55
Total other comprehensive income	49	39	67	74
Total comprehensive income for the period	115	86	323	311
Comprehensive income for the period attributable to shareholders of the Parent Company	115	86	323	311

Earnings per share

	2022 Jan-Mar	2021 Jan-Mar	R12	2021 Jan-Dec
Profit for the period attributable to shareholders of the Parent Company, SEK million	66	46	256	237
Earnings per share before dilution Average number of shares, thousands	94,533	94,484	94,527	94,515
Earnings per share before dilution, SEK	0.70	0.49	2.71	2.51
Earnings per share after dilution
Average number of shares, thousands	94,563	94,557	94,556	94,552
Earnings per share after dilution, SEK	0.70	0.49	2.71	2.51

Consolidated balance sheet in summary

SEK million	2022 31 Mar	2021 31 Mar	2021 31 Dec
Assets
Fixed assets
Goodwill	6,934	6,624	6,817
Customer contracts and customer relationships	428	483	441
Other intangible assets	27	26	27
Right-of-use assets	7,712	6,026	7,057
Tangible assets	323	303	319
Derivative instruments	29	0	3
Deferred tax assets	121	90	116
Non-current receivables	115	101	117
Total fixed assets	15,689	13,653	14,897
Current assets
Accounts receivable	1,087	1,044	1,180
Other receivables	157	114	117
Prepaid expenses and accrued income	367	334	334
Cash and cash equivalents	43	39	86
Total current assets excluding assets held for sale	1,654	1,531	1,717
Assets held for sale	107	75	60
Total current assets	1,761	1,606	1,777
Total assets	17,450	15,259	16,674

Consolidated balance sheet in summary – continued

SEK million	2022 31 Mar	2021 31 Mar	2021 31 Dec
Equity and liabilities Equity
Share capital	2	2	2
Other capital contributions	6,170	6,167	6,170
Reserves	15	-42	-34
Retained earnings, including profit for the year	-1,543	-1,715	-1,608
Total equity attributable to shareholders of the Parent Company	4,644	4,411	4,530
Total equity	4,644	4,411	4,530
Non-current liabilities
Non-current interest-bearing liabilities	1,520	915	993
Lease liabilities	7,067	5,500	6,496
Derivative instruments	–	10	–
Pension provisions	22	46	16
Other provisions	116	36	116
Deferred tax liabilities	191	199	196
Total non-current liabilities	8,916	6,705	7,817
Current liabilities
Commercial papers	1,229	1,783	1,639
Lease liabilities	875	685	779
Accounts payable	252	236	341
Other provisions	76	–	76
Tax liabilities	38	55	61
Other non-interest-bearing liabilities	169	137	238
Accrued expenses and deferred income	1,251	1,247	1,193
Total current liabilities	3,890	4,143	4,327
Total equity and liabilities	17,450	15,259	16,674

Consolidated statement of changes in equity in summary

SEK million	2022 Jan-Mar	2021 Jan-Mar	2021 Jan-Dec
Opening balance	4,530	4,326	4,326
Comprehensive income	115	86	311
Warrants issued	–	–	3
Dividends	–	–	-109
Closing balance	4,644	4,411	4,530

Consolidated cash flow statement in summary

SEK million	2022 Jan-Mar	2021 Jan-Mar	R12	2021 Jan-Dec
Operating activities Profit before financial items	167	125	640	597
Depreciation, amortisation and impairment losses	284	232	1,104	1,052
Capital gains/losses	0	0	-10	-10
Changes in provisions	-8	-3	136	141
Total non-cash items	276	229	1,230	1,183
Net interest paid	-85	-65	-316	-296
Tax paid	-53	-37	-141	-125
Cash flow from operating activities before changes in working capital	305	253	1,413	1,359
Cash flow from changes in working capital Decrease/increase in receivables	52	1	-82	-132
Decrease/increase in current liabilities	-137	-72	-84	-19
Cash flow from operating activities	220	182	1,247	1,208
Investing activities Acquisition of tangible assets	-25	-17	-98	-90
Acquisition of intangible assets	-2	-1	-11	-10
Sale of fixed assets	0	8	22	31
Free cash flow	193	172	1,160	1,139
Acquisition of subsidiaries	-89	-64	-214	-189
Acquisition of financial assets	0	-1	1	–
Cash flow from investing activities	-116	-75	-300	-258
Cash flow after investments	104	107	947	950
Financing activities Loans raised	1,228	1,534	5,243	5,549
Repayment of debt	-1,639	-1,564	-5,798	-5,723
Repayment of lease liability	-217	-172	-824	-779
Net change in checking account	490	122	551	182
Cost of loans raised	–	-5	0	-5
Premiums for warrants	–	–	3	3
Dividends paid	–	–	-109	-109
Cash flow from financing activities	-138	-85	-934	-882
Cash flow for the period	-34	22	13	68
Cash and cash equivalents on the opening date	86	25	39	25
Exchange rate differences in cash and cash equivalents	-9	-8	-9	-8
Cash and cash equivalents on the closing date	43	39	43	86

Parent Company income statement in summary

SEK million	2022 Jan-Mar	2021 Jan-Mar	R12	2021 Jan-Dec
Income Net sales	2	1	9	8
Total income	2	1	9	8
Operating expenses Other external costs	-4	-3	-13	-12
Personnel costs	-4	-2	-16	-13
Amortisation of intangible assets	0	0	0	0
Operating expenses	-8	-5	-29	-25
Operating profit	-6	-4	-20	-17
Financial items	-4	-3	-19	-19
Loss after financial items	-10	-7	-39	-36
Appropriations	–	–	68	68
Profit before tax	-10	-7	29	32
Tax on profit for the period	–	–	-7	-7
Profit for the period	-10	-7	22	25

Parent Company balance sheet in summary

SEK million	2022 31 Mar	2021 31 Mar	2021 31 Dec
Assets
Intangible assets Software	1	1	0
Financial assets Participations in Group companies	7,212	7,211	7,212
Derivative instruments	2	3	2
Total fixed assets	7,214	7,215	7,215
Current assets Receivables from Group companies	3,492	3,346	3,370
Other receivables	13	13	14
Prepaid expenses and accrued income	10	8	7
Total current assets	3,515	3,368	3,392
Total assets	10,729	10,583	10,607
Equity and liabilities
Share capital	2	2	2
Statutory reserve	0	0	0
Total restricted equity	2	2	2
Share premium reserve	1,406	1,406	1,407
Retained earnings	1,825	1,909	1,800
Profit/loss for the period	-9	-7	25
Total non-restricted equity	3,222	3,307	3,232
Total equity	3,224	3,310	3,234
Untaxed reserves	61	50	61
Non-current liabilities
Liabilities to credit institutions	1,499	933	1,003
Total non-current liabilities	1,499	933	1,003
Current liabilities
Commercial papers	1,229	1,783	1,639
Accounts payable	1	0	4
Tax liabilities	7	11	19
Liabilities to Group companies	4,696	4,482	4,634
Other liabilities	1	1	0
Accrued expenses and deferred income	11	12	13
Total current liabilities	5,945	6,290	6,309
Total equity and liabilities	10,729	10,583	10,607

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. Since all amounts are rounded, rounding differences can occur.

New or revised IFRSs as of 2022

None of the new or revised standards or interpretations effective from 1 January 2022 had any material impact on the financial statements of the Group or the Parent Company. No new or revised standards have been adopted in advance.

Alternative performance measures

In prior years, the calculation of operating cash flow was based on adjusted EBITDA and cash conversion was defined as operating cash flow relative to adjusted EBITDA. As of reporting for full-year 2021, the calculation of operating cash flow is now based on EBITDA and cash conversion is defined as operating cash flow relative to EBITDA.

Previously, the reconciliation of some performance measures excluding the effect of IFRS 16 only excluded the effect of IFRS 16 on leased premises. As of reporting for full-year 2021, we also exclude the effect of IFRS 16 on

leased vehicles. This affects the following performance measures: operating cash flow excluding the effect of IFRS 16, EBITDA and adjusted EBITDA excluding the effect of IFRS 16, EBITA and adjusted EBITA excluding the effect of IFRS 16 and net debt excluding the effect of IFRS 16.

Comparative figures have also been restated to reflect these changes, which is why they deviate from the figures reported in previous years.

NOTE 2 Segment information

Ambea's operations consist of the following segments:

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

Quarterly overview

SEK million	2020 Q1	2020 Q2	2020 Q3	2020 Q4	2021 Q1	2021 Q2	2021 Q3	2021 Q4	2022 Q1
Net sales Nytida	912	928	915	946	919	932	924	949	963
Vardaga	909	862	860	867	859	895	940	970	992
Stendi	761	756	733	726	731	748	723	737	765
Altiden	169	170	166	158	151	211	261	259	283
Klara	76	80	82	89	89	90	89	100	106
Group adjustments	-16	-20	-23	-22	-23	-23	-25	-28	-29
Ambea	2,811	2,776	2,732	2,764	2,727	2,851	2,912	2,988	3,080
Adjusted EBITA
Nytida	129	138	177	159	114	113	174	128	119
Vardaga	48	15	50	42	25	25	89	59	49
Stendi	13	31	79	15	15	4	64	28	12
Altiden	-3	-7	11	-16	1	-4	15	1	14
Klara	6	5	8	7	6	6	8	8	8
Unallocated items	-6	-8	-7	-7	-10	2	-6	-9	-7
Ambea	187	174	319	200	152	146	344	214	195

January-March 2022

						Unallocated	Group
SEK million	Nytida	Vardaga	Stendi	Altiden	Klara	items*	adjustments	Group
Operating income
Net sales	963	992	765	283	106	–	-29	3,080
Other operating income	6	12	2	18	–	6	0	43
Total income	969	1,004	766	301	106	6	-29	3,123
EBITA	119	49	12	14	8	-7	–	195
EBITA margin, %	12.4	4.9	1.6	4.9	7.5	–	–	6.3
Items affecting comparability	–	–	–	–	–	–	–	–
Adjusted EBITA	119	49	12	14	8	-7	–	195
Adjusted EBITA margin %	12.4	4.9	1.6	4.9	7.5	–	–	6.3
Amortisation of intangible assets								-27
Operating profit (EBIT)								167
Net financial items								-84
Profit after net financial items								83
Profit before tax								83
Tax on profit for the period								-17
Profit for the period								66
Assets	7,531	6,246	2,178	1,114	181	199	–	17,450

January-March 2021

						Unallocated	Group
SEK million	Nytida	Vardaga	Stendi	Altiden	Klara	items*	adjustments	Group
Operating income
Net sales	919	859	731	151	89	–	-23	2,727
Other operating income	7	28	3	4	–	7	–	48
Total income	927	886	734	155	89	7	-23	2,775
EBITA	114	25	15	1	6	-10	–	151
EBITA margin, %	12.4	2.9	2.1	0.7	6.7	–	–	5.6
Items affecting comparability	–	–	–	–	–	–	–	–
Adjusted EBITA	114	25	15	1	6	-10	–	151
Adjusted EBITA margin %	12.4	2.9	2.1	0.7	6.7	–	–	5.6
Amortisation of intangible assets								-27
Operating profit (EBIT)								125
Net financial items								-67
Profit after net financial items								59
Profit before tax								59
Tax on profit for the period								-12
Profit for the period								46
Assets	5,836	6,639	1,975	444	179	186	–	15,259

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

NOTE 3 Revenue from Contracts with Customers

												Group
		Nytida		Vardaga		Stendi		Altiden		Klara		eliminations		Group
SEK million	2022	2021	2022	2021	2022	2021	2022	2021	2022	2021	2022	2021	2022	2021
Own Management	785	764	664	554	702	674	186	60	–	–	–	–	2,337	2,052
Contract Manage ment	178	155	328	305	63	57	97	91	–	–	–	–	666	608
Staffing	–	–	–	–	–	–	–	–	106	89	-29	-23	77	67
Total	963	919	992	859	765	731	283	151	106	89	-29	-23	3,080	2,727

Type of service delivery (January-March)

NOTE 4 Items affecting comparability

SEK million	2022 Jan-Mar	2021 Jan-Mar	R12	2021 Jan-Dec
Provision, legal proceeding in Norway	–	–	-145	-145
Total items affecting comparability	–	–	-145	-145

No items affecting comparability were recognised in 2022. Items affecting comparability in 2021 refer to provision in Stendi in connection with a legal proceeding in Norway related to costs for temporary staff.

Note 5 Business combinations

During the quarter, Hannas Hemtjänst was acquired, which offers home care in central Stockholm. Control of the company was acquired on 1 March 2022 for a consideration of about SEK 12 million. The acquisition analysis is preliminary. Transaction costs for the acquisition amounted to SEK 0.1 million. Since the acquisition date, Hannas Hemtjänst has contributed SEK 3 million to net sales and SEK 0.1 million to profit before tax. If the acquisition had taken place on 1 January 2022, the company would have contributed SEK 8 million to net sales and SEK 0.1 million to profit before tax.

Control of Christinagården and Yxe Herrgård was acquired on 1 February 2022 for a consideration of about SEK 94 mil-

Effect on financial position

SEK million	Hannas Hemtjänst	Christina gården and Yxe Herrgård	Total
Net identifiable assets excl.
intangible assets	1	43	44
Intangible assets	–	10	10
Group goodwill	11	41	52
Total consideration (price of shares)	12	94	106
Less: earn-out	–	–	–
Less: cash and cash equivalents	-2	-15	-17
Net change in cash	10	79	89

lion. The acquisition analysis is preliminary. Transaction costs for the acquisition amounted to SEK 1 million. Since the acquisition date, Christinagården and Yxe Herrgård have contributed SEK 16 million to net sales and SEK 2 million to profit before tax. If the acquisition had taken place on 1 January 2022, the company would have contributed SEK 25 million to net sales and SEK 3 million to profit before tax.

After the end of the quarter, Nytida acquired the Alternatus Familia company, which provides foster care services in Sweden. In addition, Klara acquired the SkolPool company, which provides staffing services and is a market leader in student health services.

Distribution of net assets on the acquisition date

	Hannas	Christina gården and
SEK million	Hemtjänst	Yxe Herrgård	Total
Fixed assets	–	48	48
Right-of-use assets	–	–	–
Accounts receivable and other receivables	3	10	13
Cash and cash equivalents	2	15	17
Non-current liabilities and provisions	–	-15	-15
Lease liabilities	–	–	–
Accounts payable and other liabilities	-4	-15	-19
Net identifiable assets	1	43	44

Date	Acquisitions	Divestments	Operations	Segments	Annual sales
1 Feb 2022	Christinagården and Yxe Herrgård	–	Psychiatric residential treatment facilities, residential LSS facilities and a day services unit	Nytida	SEK 100 million
1 Mar 2022	Hannas Hemtjänst	–	Home care	Vardaga	SEK 32 million

Acquisitions and divestments during the year

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

			Classification in the fair value hierarchy
			1		2		3
SEK million	2022 31 Mar	2021 31 Mar	2022 31 Mar	2021 31 Mar	2022 31 Mar	2021 31 Mar	2022 31 Mar	2021 31 Mar
Assets Interest-rate derivatives	29	–	–	–	29	0		–
Investments in housing cooperative associ ations	97	89	–	–	–	–	97	89
Liabilities Interest-rate derivatives	–	10	–	–	–	10	–	–

Fair value of financial instruments in the fair value hierarchy

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

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

Level 2 – Observable data for assets or liabilities other than quoted prices included in Level 1, either directly (i.e. as price quotations) or indirectly (i.e. derived from price quotations). This level includes derivative instruments that are recognised under Other current assets or Other current liabilities.

Level 3 – Data for assets or liabilities not based on observable market data. Participations in tenant-owner associations are measured using the price trend for tenant-owned apartments in the area, with adjustments for the specific conditions that apply to Ambea's apartments. Earn-out liabilities measured at fair value based on management's best estimate of possible outcome.

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

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

NOTE 7 Pledged assets and contingent liabilities

SEK million	2022 31 Mar	2021 31 Mar	2021 31 Dec
Leased assets	129	115	128
Real estate mortgages	3	–	–
Total pledged assets	132	115	128

NOTE 8 Reconciliation of financial statements

SEK million	2022 Jan-Mar	2021 Jan-Mar	R12	2021 Jan-Dec
Growth/Acquired growth
Net sales growth (%)	13	-3	3	4
Of which acquired growth (%)	5	0	3	2
Of which currency effect (%)	2	-1	-2	0
Of which organic growth (%)	6	-2	2	2
Operating margin (EBIT)
Net sales	3,080	2,727	11,832	11,478
Operating profit (EBIT)	167	125	640	598
Operating margin, EBIT (%)	5.4	4.6	5.4	5.2
EBITA and adjusted EBITA Operating profit (EBIT)	167	125	640	598
Amortisation and impairment of intangible assets	27	27	114	114
EBITA	195	152	754	712
Items affecting comparability	–	–	145	145
Adjusted EBITA	195	152	899	857
Net sales	3,080	2,727	11,832	11,478
EBITA margin (%)	6.3	5.6	6.4	6.2
Adjusted EBITA margin (%)	6.3	5.6	7.6	7.5
EBITDA and adjusted EBITDA Operating profit (EBIT)	167	125	640	598
Depreciation, amortisation and impairment of assets	284	232	1,104	1,052
EBITDA	451	357	1,744	1,650
Items affecting comparability	–	–	145	145
Adjusted EBITDA	451	357	1,889	1,794
EBITDA and adjusted EBITDA excl. IFRS 16 Operating profit (EBIT)	167	125	640	598
Depreciation, amortisation and impairment of assets	284	232	1,104	1,052
Additional: Rental payments Properties	-272	-221	-1,037	-985
Additional: Rental payments Vehicles	-9	-9	-36	-36
Additional: Capital gain/loss from terminated agreements	–	–	-1	-1
Net effect of IFRS 16 on EBITDA	-281	-230	-1,074	-1,022
EBITDA excl. IFRS 16	170	127	670	628
Items affecting comparability	–	–	145	145
Adjusted EBITDA excl. IFRS 16	170	127	815	773
EBITA and adjusted EBITA excl. IFRS 16 Operating profit (EBIT)	167	125	640	598
Amortisation and impairment of intangible assets	27	27	114	114
EBITA	195	152	754	712
Less, amortisation IFRS 16	233	186	889	842
Additional: Rental payments Properties	-272	-221	-1,037	-985
Additional: Rental payments Vehicles	-9	-9	-36	-36
Additional: Capital gain/loss from terminated agreements	–	–	-1	-1
Net effect of IFRS 16 on EBITA	-48	-44	-185	-180
EBITA excl. IFRS 16	147	109	569	532
Items affecting comparability	–	–	145	145
Adjusted EBITA excl. IFRS 16	147	109	714	677
EBITA margin excl. IFRS 16	4.8	4.0	4.8	4.6
Adjusted EBITA margin excl. IFRS 16	4.8	4.0	6.0	5.9

NOTE 8 Reconciliation of financial statements – continued

SEK million	2022 Jan-Mar	2021 Jan-Mar	R12	2021 Jan-Dec
Operating cash flow
EBITDA	451	357	1,744	1,650
Adjustment for non-cash items	-8	-3	126	131
Cash flow from investing activities excl. acquisition and divestment of subsidiaries	-27	-10	-87	-70
Adjustment for cash flow from investing activities related to increased capacity/growth	12	3	29	20
Change in working capital	-86	-71	-166	-152
Operating cash flow	342	276	1,646	1,579
Cash conversion (%)
Operating cash flow	342	276	1,646	1,579
EBITDA	451	357	1,742	1,650
Cash conversion (%)	75.8	77.5	94.5	95.7
Items affecting comparability
Reversal of provision related to legal proceeding in Norway
– of which costs included in the line item of other external costs	–	–	145	145
Total provision related to legal proceeding in Norway	–	–	145	145
Total items affecting comparability	–	–	145	145

SEK million	2022 31 Mar	2021 31 Mar	2021 31 Dec
Net debt, Net debt/Adjusted EBITDA, RTM
Non-current interest-bearing liabilities	8,587	6,415	7,489
Current interest-bearing liabilities	2,104	2,469	2,418
Less: cash and cash equivalents	-43	-39	-86
Net debt	10,648	8,845	9,821
Adjusted EBITDA RTM	1,889	1,644	1,794
Net debt/Adjusted EBITDA, RTM (times)	5.6	5.4	5.5
Net debt, Net debt/Adjusted EBITDA, RTM excl. effect of IFRS 16
Non-current interest-bearing liabilities	8,587	6,415	7,489
Less: non-current lease liabilities pertaining to properties recognised on the lease liability line	-6,943	-5,393	-6,375
Less: non-current lease liabilities pertaining to vehicles, recognised on the Lease liability line	-124	-107	-121
Current interest-bearing liabilities	2,104	2,469	2,418
Less: current lease liabilities pertaining to properties recognised on the lease liability line	-838	-645	-741
Less: current lease liabilities pertaining to vehicles, recognised on the lease liability line	-37	-40	-38
Less: cash and cash equivalents	-43	-39	-86
Net debt excl. IFRS 16	2,706	2,660	2,547
Adjusted EBITDA RTM	815	813	773
Net debt/Adjusted EBITDA, RTM (times)	3.3	3.3	3.3