Attendo

Quarterly Report • Oct 23, 2020

Interim report January–September 2020

Still photo from a Swedish TV series "Four-Year-Olds at the Nursing Home", filmed at Attendo Maria Winkvist in Norrtälje in the autumn of 2019 and shown on TV4 in September-October 2020. Photograph: Jakob Dahlström/TV4

Attendo AB (publ) Interim Report, January- September 2020

Summary of the third quarter 2020

• Net sales decreased by 1 percent to SEK 2,983m (3,013). Adjusted for currency effects, net sales increased by 1 percent. The divestment of the Norwegian operations has reduced sales by approximately SEK 100m. Organic growth amounted to 3%.
• Operating profit (EBITA)* amounted to SEK 269m (294), corresponding to an operating margin of 9.0 percent (9.8). The financial impact of the coronavirus pandemic during the quarter is estimated to SEK -40m. A capital gain of SEK 31m on the sale of properties in the Attendo Scandinavia business area had a positive impact on the comparison quarter.
• Adjusted EBITA, i.e. EBITA according to the previous IAS 17 accounting standard, was SEK 162m (204), corresponding to an adjusted operating margin of 5.4 percent (6.8). See the income statement on pages 25-26 for more information about the effects of IFRS 16.
• Profit for the period amounted to SEK 64m (94). Diluted earnings per share were SEK 0.40 (0.58). Adjusted earnings per share* after dilution were SEK 0.64 (0.90).
• Free cash flow amounted to SEK -128m (51).
• The total number of beds in operation in Attendo's own homes was 17,485 (16,470), an increase by 6 percent. Occupancy in own homes was 79 percent (80).
• The Attendo Scandinavia business area will continue to be affected by the corona situation during the fourth quarter as concerns about the pandemic has led to low demand for beds. Attendo's assessment is that this profit effect amounts to approximately SEK -20m per month for the remainder of the year. Given the uncertainty about how the corona pandemic will develop, there is significant uncertainty about the estimate.

Summary of the period January–September 2020

• Net sales increased by 4 percent, before and after currency effects, to SEK 9,223m (8,881).
• Operating profit (EBITA)* amounted to SEK 604m (673), corresponding to an operating margin of 6.5 percent (7.6). The financial impact of the pandemic is estimated to SEK -120m. In relation to the comparison period, capital gains on the sale of real estate had a net positive effect on profit of SEK 10m.
• Adjusted EBITA*, i.e. EBITA according to the previous IAS 17 accounting standard, was SEK 288m (406), corresponding to an adjusted operating margin of 3.1 percent (4.6).
• Attendo is reporting a loss of SEK -908m (121) for the period. Impairment losses were taken in the second quarter on goodwill and on right-of-use assets, which reduced profit for the period by SEK -961m. Diluted earnings per share were SEK -5.65 (0.75). Adjusted earnings per share* after dilution were SEK 1.12 (1.66).

			Change	Jan-Sep	Jan-Sep	Change
SEKm	Q3 2020	Q3 2019	(%)	2020	2019	(%)
Net sales	2,983	3,013	-1	9,223	8,881	4
Operating profit (EBITA)*	269	294	-9	604	673	-10
Operating margin (EBITA)*, %	9.0	9.8	-	6.5	7.6	-
Adjusted operating profit (EBITA)*	162	204	-21	288	406	-29
Adjusted operating margin (EBITA)*, %	5.4	6.8	-	3.1	4.6	-
Profit for the period	64	94	-32	-908	121	-850
Earnings per share diluted, SEK	0.40	0.58	-32	-5.65	0.75	-
Adjusted earnings per share diluted, SEK	0.64	0.90	-29	1.12	1.66	-33
Free cash flow	-128	51	-	296	55	-

Free cash flow amounted to SEK 296m (55).

*Note that unless otherwise stated, EBITA as well as adjusted EBITA in this report refers to EBITA / adjusted EBITA excluding items affecting comparability. As of Q1 2020, Attendo also reports also reports Adjusted earnings per share after dilution to improve comparability. See also definitions of key figures and *Note that unless otherwise stated, EBITA and adjusted EBITA in this report refer to EBITA/adjusted EBITA excluding items affecting comparability. As of the first quarter of 2020, Attendo also reports adjusted earnings per share after dilution in order to improve comparability. See also definitions of key data and alternative performance measures on pages 32-33.

President and CEO Martin Tivéus comments on the report

Positive development in Finland but low demand in Scandinavia linked to concerns related to the pandemic

The action programme we launched for the Finnish operations in mid-2019 shows favourable progress. After mid-year, we lowered the rate of opening of new units, as planned, while gradually adjusting prices following the sharper staffing requirements. Since the ban on nursing home visits was lifted in Finland in early summer, the inflow of new customers has also resumed, as evident in the results of operations. Our Scandinavian operations were clearly still impacted by the ongoing pandemic. Although that our nursing homes, with a few exceptions, have been free of infection since the beginning of the third quarter, concerns about the pandemic have clearly lowered the demand for nursing home beds on the Swedish market.

Action programme in Finland proceeding as planned

We see continued positive effects of the action programme in Finland during the third quarter. We are seeing positive effects of the negotiations ahead of 2020, which partly compensated for costs related to previously stricter staffing requirements.

A low opening pace, in combination with a normalisation of customer inflow and the fact that we closed down a number of beds, led to an improvement in the occupancy rate of three percentage points versus third quarter last year. We have continued to strengthen management and quality work at both central and local level in Finland.

Net sales in Attendo Finland rose by about 10 percent in the third quarter compared to the comparison quarter in 2019. Compared to 2019, EBITA doubled to SEK 121 million, linked to more sold beds and positive price effects.

Demand in Sweden slowed by covid-19

From a Nordic perspective, Sweden has been hit the hardest by the pandemic, particularly in the capital area of Stockholm, where 37 nursing homes and 17 home care districts generate a significant share of our Scandinavian revenues. The ban on nursing home visits that was in effect in Sweden for the entire quarter, combined with worry about the pandemic, markedly slowed demand during the quarter, as many local authorities have available capacity and many older people who have been granted beds have chosen not to move in. The low demand in combination with a high number of opened units have reduced occupancy by as much as 13 percentage points compared with the previous year.

Net sales in Scandinavia decreased by 11 percent as a consequence of the sale of the Norwegian business and the low occupancy. EBITA was down 26 percent compared to the third quarter of 2019 (excluding the capital gain in the comparison quarter), primarily due to low occupancy in mature units, but also an increase in the number of beds in the start-up phase as we have opened several new care units in Sweden during the year. Towards the end of the third quarter and at the beginning of the fourth, we have seen a stabilization of occupancy, even though the inflow of new customers has continued to be lower than normal.

"We see continued effects of the action programme in Finland during the third quarter. In addition, the customer inflow has normalized and the occupancy has improved with three percentage points versus last year."

Stable results for the Attendo Group overall

In spite of the ongoing pandemic and weak customer inflow in Scandinavia, we managed to deliver stable results overall. Organic growth was 3 percent during the quarter, driven by higher occupancy in Finland and positive price effects. Although organic growth was good, total sales decreased by 1 percent, a consequence of divesting the Norwegian operations and negative currency effects.

EBITA amounted to SEK 269 million for the third quarter, a slight improvement compared to last year (excluding the capital gain in the comparison quarter). Profit rose in Finland due to higher occupancy and price adjustments, while we reported lower profit in Scandinavia due to low customer inflow, resulting in more vacant beds.

The effects of the corona pandemic reduced operating profit by about SEK 40 million, entirely attributable to Scandinavia. Although it is difficult to predict the continued development of the pandemic and its impact on the rate of new customers moving in, occupancy in our Swedish operations is significantly lower as we move into the fourth quarter. Attendo's assessment is that this effect on profits amounts to approximately SEK -20 million per month for the remainder of the year.

Attendo has applied for compensation from the Swedish state for certain direct costs related to the pandemic during the period up to August, but it is still uncertain when and to what extent compensation will be provided.

Continuing the effort towards better care

Our entire organisation has devoted huge effort during the ongoing pandemic to protect our customers, many of whom are in the high-risk group for covid-19. As the situation has unfolded, we have gathered data and experiences from the pandemic that we are now using to be prepared in the event that infection increases in the community again. This entails ongoing preparedness with strict procedures for preventing the entry of infection, which includes the wearing of masks when providing care services.

As the largest Nordic provider, we consider it our social responsibility to share our experiences with public authorities and politicians and have held several meetings during the summer and early autumn.

We are also continuing our efforts to further develop Attendo in the wake of the pandemic. We launched our new "Nära" ("Close") app for relatives of our residents at nursing homes during the quarter, aimed at improving and simplifying contacts and involvement with their relatives and providing greater peace of mind to our residents and their relatives.

I would like to conclude by expressing heartfelt thanks to all of our incredible employees, who have made life-and-death contributions in extremely challenging circumstances since the outbreak of the pandemic.

Martin Tivéus, President and CEO

Group

July-September 2020

Net sales and operating profit

Net sales decreased by 1.0 percent to SEK 2,983m (3,013) during the quarter. Adjusted for currency effects, net sales increased by 0.6 percent. Organic growth accounted for 3.0 percent and the net change due to acquisitions and divestments was -2.4 percent. The latter is mainly attributable to the sale of Attendo's operations in Norway. Own homes demonstrated sustained strong growth, driven primarily by homes opened in Finland in 2019 and 2020. Price increases, particularly in Attendo Finland, had positive effect on organic growth. The Corona situation has had a negative effect on organic growth. Attendo is working actively to shut down operations where the conditions for quality and profitability are lacking. Since the comparison quarter, Attendo has shut down several own homes and home care operations, which has constrained organic growth.

The own operations contract model accounted for 87 percent of total consolidated net sales during the quarter and the outsourcing contract model accounted for 13 percent.

Operating profit (EBITA)* amounted to SEK 269m (294) and the operating margin was 9.0 percent (9.8). Profits decreased in Attendo Scandinavia, but increased in Attendo Finland. Currency effects had marginal impact on profits.

Underlying EBITA adjusted for capital gains and the effects of the pandemic increased. Operating profit was positively affected by price effects and higher occupancy in own homes that opened in 2019 and 2018. EBITA was negatively affected by new own homes opened in 2020, as occupancy is initially low in new units. The sales loss due to the pandemic is estimated to have reduced operating profits by about SEK 40m. EBITA in the comparison quarter was positively affected by a capital gain of SEK 31m related to sale of real estate in Attendo Scandinavia.

Adjusted EBITA*, i.e. EBITA according to the previous IAS 17 accounting standard, was SEK 162m (204). The adjusted operating margin (EBITA) was 5.4 percent (6.8).

The total number of beds in operation in own homes was 17,485 (16,470), an increase by 6 percent. Occupancy in these homes was 79 percent (80). Mature units – those opened in 2017 or earlier, excluding Mikeva units – had an occupancy rate of about 87 percent (90) and showed an adjusted operating margin (EBITA)* of 5.5 percent on a rolling 12 months' basis (r12), including all of Attendo's administrative expenses but excluding capital gains. The number of beds under construction in own operations increased to 1,228 across 19 homes.

* Excluding items affecting comparability, ie write-downs of intangible assets.

people with disabilities and social psychiatry

Operating profit (EBIT) excluding items affecting comparability amounted to SEK 239m (260), corresponding to an operating margin (EBIT) excluding items affecting comparability of 8.0 percent (8.6). The change is explained mainly by the change in operating profit (EBITA), as commented upon above.

Items affecting comparability during the quarter refer to currency effects related to the impairment of goodwill and right-of-use assets in the Finnish operations recognised in the second quarter of 2020.

Operating profit (EBIT) amounted to SEK 249m (260), corresponding to an operating margin EBIT) of 8.3 percent (8.6).

Financial net

Net financial items amounted to SEK -166m (-137) for the quarter, including net interest expense of SEK -14m (-13). Interest expense related to the lease liability for land and buildings in accordance with IFRS 16 amounted to SEK -138m (-120).

Income tax

Income tax for the period amounted to SEK -19m (-29), corresponding to a tax rate of 22.9 percent (23.6).

Profit and earnings per share for the period

Profit for the period amounted to SEK 64m (94), corresponding to basic and diluted earnings per share for shareholders in the parent company of SEK 0.40 (0.58). Adjusted earnings per share after dilution and excluding items affecting comparability were SEK 0.64 (0.90).

January–September 2020

Net sales and operating profit

Net sales increased by 3.9 percent to SEK 9,223m (8,881) during the period. Adjusted for currency effects, net sales increased by 4.1 percent. Organic growth accounted for 4.3 percent and acquired growth for -0.2 percent. Own homes demonstrated sustained strong growth, driven primarily by homes opened in Finland in 2019 and 2020. Price increases, particularly in Attendo Finland, and the leap day in 2020 had positive effect on organic growth. The Corona situation has had a negative effect on organic growth. Attendo is working actively to shut down operations where the conditions for quality and profitability are lacking. Since the comparison period, Attendo has shut down several own homes and home care operations, which has constrained organic growth.

Operating profit (EBITA)* amounted to SEK 604m (673) and the operating margin was 6.5 percent (7.6). Profit decreased in both Attendo Scandinavia and Attendo Finland. Currency effects had marginal impact on profits.

In relation to the comparison period, EBITA was negatively affected by higher costs due to increased staffing requirements and other related costs that partially affected to the comparison quarter in the Attendo Finland business area. In addition, EBITA was negatively affected by new homes in own operations opened in 2020, as occupancy is initially low in new units.

Attendo is investing in strengthening the organisation and has expanded managerial and support functions centrally and regionally, which has entailed increased costs, primarily in Attendo Finland. The pandemic has reduced profit by an estimated SEK -120m due to the profit impact of the sales loss and cost increases.

Price effects, better financial performance in outsourcing and home care operations and higher occupancy in homes in own operations opened in 2018 and 2017 had positive impact on operating profit. In relation to the comparison period, there was a net positive effect on profit of SEK 10m from capital gains on the sale of real estate.

Adjusted EBITA*, i.e. EBITA according to the previous IAS 17 accounting standard, was SEK 288m (406). The adjusted operating margin (EBITA)* was 3.1 percent (4.6).

Operating profit (EBIT) excluding items affecting comparability amounted to SEK 511m (568), corresponding to an operating margin (EBIT) excluding items affecting comparability of 5.5 percent (6.4). The change is explained mainly by the change in operating profit (EBITA), as commented upon above.

Items affecting comparability refer to the impairment of goodwill and right-ofuse assets related to operations in Finland. Impairment losses were taken in the second quarter on goodwill and right-of-use assets, which reduced profit for the period by SEK -961m.

The operating loss (EBIT) amounted to SEK -450m (568), corresponding to an operating margin (EBIT) of -4.9 percent (6.4).

Financial net

Net financial items amounted to SEK -480m (-409) for the period, including net interest expense of SEK -44m (-44). Interest expense related to the lease liability for land and buildings in accordance with IFRS 16 amounted to SEK -418m (-346).

Income tax

Tax expense for the period amounted to SEK 22m (-38), corresponding to a tax rate of 21.3 percent (24.0), adjusted for the impairment of goodwill during the period.

Profit and earnings per share for the period

The loss for the period amounted to SEK -908m (121), corresponding to basic and diluted earnings per share for shareholders in the parent company of SEK -5.65 (0.75). Adjusted earnings per share after dilution and excluding items affecting comparability were SEK 1.12 (1.66).

*Excluding items affecting comparability

Business Area: Attendo Scandinavia

			Sep 30,	Sep 30,	Jan-Dec
SEKm	Q3 2020	Q3 2019	2020	2019	2019
Net sales	1,410	1,584	4,552	4,709	6,305
Operating profit (EBITA)	163	252	503	543	715
Operating margin (EBITA), %	11.6	15.9	11.1	11.5	11.3
Adjusted EBITA	118	210	369	430	555
Adjusted EBITA margin, %	8.4	13.3	8.1	9.1	8.8

July–September 2020

Net sales in Attendo Scandinavia amounted to SEK 1,410m (1,584), corresponding to a change of -11.0 percent. Adjusted for currency effects, the decrease in sales was 10.8 percent. The decline in sales is attributable mainly to the divestment of the operations in Norway (SEK ~100m), lower sales due to the pandemic, and discontinued operations within home care. Total occupancy and occupancy in mature units in own operations have decreased due to the pandemic.

Operating profit (EBITA) amounted to SEK 163m (252), corresponding to an operating margin (EBITA) of 11.6 percent (15.9). Currency effects had marginal impact on profits.

The estimated profit impact of the pandemic is SEK -45m primarily due to the profit impact of the sales loss. EBITA in the comparison quarter was positively affected by the capital gain of SEK 31m on the sale of real estate. Attendo Scandinavia has opened several own homes since the beginning of the year, which significantly reduced profits because initial occupancy is low.

Adjusted EBITA, i.e. EBITA according to the previous IAS 17 accounting standard, was SEK 118m (210), corresponding to an adjusted operating margin of 8.4 percent (13.3).

The number of beds opened in the last twelve months amounts to 614, a historically high level. A high percentage of new units has negative effect on the average occupancy rate. At the end of the quarter, there were 898 beds under construction. Attendo lost two not yet ended contracts with estimated annual revenue of SEK 61m. Attendo sold its operations in Norway and discontinued one home care operation.

Attendo has applied for compensation for increased costs related to the corona pandemic from the state, channelled through local authorities. The outcome of the application and when any compensation would be paid is unclear.

Net sales per service offering, Q3 2020

January-September 2020

Net sales in Attendo Scandinavia amounted to SEK 4,552m (4,709), corresponding to a change of -3.3 percent. Adjusted for currency effects, the change was -3.0 percent. The decline in sales is attributable mainly to lower sales due to the pandemic, divestment of the Norwegian operations and discontinued operations within home care.

Operating profit (EBITA) amounted to SEK 503m (543), corresponding to an operating margin (EBITA) of 11.1 percent (11.5). Currency effects had marginal impact on profits.

Underlying EBITA excluding the effects of the coronavirus pandemic and capital gains improved due to better financial performance in outsourcing and home care operations through improved planning and processes and discontinued operations in Denmark, as well as improved occupancy in homes in own operations opened in 2018. Attendo Scandinavia has opened several own homes since the beginning of the year, which significantly reduced profits because initial occupancy is low. The estimated profit impact of the pandemic was SEK -100m in a combined effect on profits due to sales loss and cost increases. In relation to the comparison period, there was a total net effect on EBITA of SEK +10m from capital gains on the sale of real estate (SEK 41m in the second quarter 2020 and SEK 31m in the third quarter 2019.

Adjusted EBITA, i.e. EBITA according to the previous IAS 17 accounting standard,was SEK 369m (430), corresponding to an operating margin of 8.1 percent (9.1).

Attendo Scandinavia	Q3 2019	Q4 2019	Q1 2020	Q2 2020	Q3 2020
Number of beds in operation in own homes	3,602	3,689	3,940	4,121	4,025
Number of opened beds in own homes (r12)	210	330	525	626	614
Occupancy in own homes, %	87	86	83	75	74
Number of beds in own homes under construction	1,146	1,110	965	898	898
Number of beds in operation in outsourcing	2,546	2,557	2,579	2,508	2,185
Net outsourcing contracts won/lost, SEKm	45	-44	29	-10	-61
Home care customers	12,428	11,889	11,250	10,289	10,110

Key data per quarter

Beds refer to nursing homes for older people, homes for people with disabilities and social psychiatry.

Business Area: Attendo Finland

			Sep 30,	Sep 30,	Jan-Dec
SEKm	Q3 2020	Q3 2019	2020	2019	2019
Net sales	1,573	1,429	4,671	4,172	5,630
Operating profit (EBITA)*	121	60	152	183	163
Operating margin (EBITA)*, %	7.7	4.2	3.3	4.4	2.9
Adjusted EBITA*	59	11	-30	28	-48
Adjusted EBITA margin*, %	3.8	0.8	-0.6	0.7	-0.9

*Excluding items affecting comparability.

July–September 2020

Net sales in Attendo Finland amounted to SEK 1,573m (1,429) corresponding to growth of 10.1 percent. Adjusted for currency affects, net sales increased by 13.3 percent. The growth is primarily attributable to new own homes opened in 2019 and 2020, price increases and acquisitions. The price increases correspond to about 3 percent of total net sales. Since the comparison quarter, Attendo Finland has discontinued several own homes, and most residents have been transferred to newly built and modern Attendo homes, although a few units were discontinued entirely.

Operating profit (EBITA)* increased to SEK 121m (60) and the operating margin (EBITA) increased to 7.7 percent (4.2). Currency effects had marginal impact.

The increase in EBITA is attributable to price increases and higher occupancy in own homes opened in 2019 and 2018. EBITA was negatively affected by new own homes that opened this year, for which occupancy is initially low, and by higher operating costs in local units in relation to the comparison quarter. The reduction of social insurance payments during the quarter has compensated for the profit impact of lost revenues and the costs of materials due to the corona situation.

Adjusted EBITA amounted to SEK 59m (11) and the adjusted EBITA margin was 3.8 percent (0.8).

One own home with 22 beds was opened during the quarter, bringing the number of beds opened in the last twelve months to 1,016. About 120 beds were discontinued during the quarter and the majority of the residents were moved to other Attendo homes. Construction began on three own homes with a total of 140 beds during the quarter; the homes will replace old municipal homes. At the end of the quarter, there were 330 beds under construction. One home operated under the outsourcing contract model was converted to own operations and two home care operations were discontinued during the quarter. At the end of the quarter, Attendo Finland had fewer unsold beds than in the comparison quarter.

*Excluding items affecting comparability.

Net sales per service offering Q3 2020

January-September 2020

Net sales in Attendo Finland during the period amounted to SEK 4,671m (4,172) corresponding to growth of 12.0 percent. Adjusted for currency effects, net sales increased by 12.1 percent. The growth is primarily attributable to new own homes opened in 2019 and 2020, price increases and acquisitions. The price increases correspond to about 3 percent of total net sales. Since the comparison quarter, Attendo Finland has discontinued several own homes, and most residents have been transferred to newly built and modern Attendo homes, although a few units were discontinued entirely. The leap day in 2020 had positive impact on growth.

Operating profit (EBITA)* amounted to SEK 152m (183) and the operating margin (EBITA)* was 3.3 percent (4.4). Currency effects had insignificant impact. The estimated profit impact of the pandemic is SEK -20m. Following the increased staffing requirements imposed by public authorities, Attendo Finland has since the comparison period increased staffing which has entailed significantly higher costs in relation to the comparison period. Profit in relation to the comparison period was therefore negatively affected by increased staffing, but also by new own homes, where occupancy is initially low. Attendo's investments in strengthening managerial and support functions centrally and regionally have entailed increased costs. Price effects and higher occupancy in homes in own operations that opened in 2018 and 2017 had positive impact on EBITA.

Adjusted EBITA amounted to SEK -30m (28) and the adjusted EBITA margin was -0.6 percent (0.7).

	Q3	Q4	Q1	Q2	Q3
Attendo Finland	2019	2019	2020	2020	2020
Number of beds in operation in own homes	12,868	12,929	13,320	13,529	13,460
Number of opened beds in own homes (r12)	1,657	1,620	1,661	1,416	1,016
Occupancy in own homes, %	78	79	80	79	81
Number of beds in own homes under construction	948	870	458	212	330
Number of beds in operation in outsourcing	262	244	244	244	161
Home care customers	620	596	584	835	677

Key data per quarter

Beds refer to nursing homes for older people, homes for people with disabilities and social psychiatry.

*Excluding items affecting comparability

Cash flow

July–September 2020

Free cash flow was SEK-128m (51) during the quarter, whereof changes in working capital amounted to SEK -249m (-217). The negative change in working capital is primarily attributable to annual leave pay that was paid during the quarter.

Cash flow from operating activities was SEK 143m (241). Cash used for net investments in non-current assets was SEK -47m (13) and cash flow from assets and liabilities held for sale amounted to SEK 0m (242). Business acquisitions reduced cash flow by SEK -6m (-13). Sales of subsidiaries reduced cash flow during the quarter by SEK -13m (-). Cash used for investing activities thus amounted to SEK -66m (242).

Cash used in financing activities was SEK -165m (-490). Total cash used amounted to SEK -88m (-7).

January–September 2020

Free cash flow during the period was SEK 296m (55), whereof changes in working capital amounted to SEK 199m (-189).

Cash flow from operating activities was SEK 1,248m (771). Cash used for net investments in non-current assets was SEK -279m (-132) and cash flow from assets and liabilities held for sale amounted to SEK 196m (312). Business acquisitions reduced cash flow by SEK -120m (-200). Sales of subsidiaries reduced cash flow by SEK -13m (87). Cash used for investing activities thus amounted to SEK -216m (67). Cash used in financing activities was SEK -769m (-3,017). Financing activities include loan repayments of SEK -225m (-2,337) and new borrowings of SEK 127m (-). Total cash flow amounted to SEK 263m (-2,179).

Financial position

Equity as of 30 September 2020 amounted to SEK 4,914m (5,936), which represents diluted equity per share attributable to shareholders in the parent of SEK 30.54 (36.89). Net debt amounted to SEK 12,909m (11,277). Adjusted net debt, excluding lease liability for land and buildings, amounted to SEK 2,052m (2,375).

SEKm	Sep 30, 2020*	Sep 30, 2019	Dec 31, 2019
Interest-bearing liabilities	13,683	11,989	12,339
Provisions for post-employment benefits	10	33	15
Cash and cash equivalents	-784	-745	-523
Net debt	12,909	11,277	11,831
Lease liability real estate	-10,857	- 8,902	-9,471
Adjusted net debt	2,052	2,375	2,360

*Excluding assets in operations held for sale.

Interest-bearing liabilities amounted to SEK 13,683m (11,989) on 30 September 2020. Cash and cash equivalents as of 30 September 2020 amounted to SEK 784m (745) and Attendo had SEK 1,800m (1,689) in unutilised committed credit facilities.

Net debt/EBITDA* was 6.5 (5.8). Net debt/Adjusted EBITDA* was 3.8 (3.3).

SEKm	Sep 30, 2020*	Sep 30, 2019	Dec 31, 2019
Net debt / EBITDA*	6.5	5.8	6.1
Adjusted net debt / adjusted EBITDA	3.8	3.3	3.6

*Excluding items affecting comparability.

Quality and employees

Focus during the third quarter remained on managing the ongoing pandemic. Community transmission declined radically at the beginning of the third quarter, but is now increasing somewhat, from a low level. This requires sustained response capacity for all Attendo units, where our strict procedures to prevent transmission still apply.

The national ban on nursing home visits in Sweden was lifted during the quarter, and relatives are able to see their loved ones again. In parallel with recommendations issued by the Public Health Agency of Sweden, Attendo has designed and implemented its own procedures for ensuring that people can meet safely. Meetings take place in the resident's apartment and are combined with rigorous hygiene procedures, including that Attendo provides masks to visiting relatives.

The Swedish National Board of Health and Welfare published its annual user survey in September. People who are receiving home care services or who live in a nursing home answered a survey to discover their opinions about care for older people. The survey shows that Attendo's units received a higher aggregate satisfaction score compared to 2019.

Efforts to improve interaction with relatives intensified during the quarter. The "Attendo Nära" ("Attendo Close") app was developed and will increase involvement and peace of mind for residents and their relatives. Via the app, Attendo will be able to offer family members various types of information, such as current menus, activities, updates from day-to-day operations and interaction with residents, managers and employees.

TV4 broadcast a programme during the third quarter called "Four-Year-Olds at the Nursing Home", which was filmed at Attendo Maria Winkvist in Norrtälje in 2019. Over four episodes, viewers followed along with everyday life at a nursing home and watched thought-provoking meetings with children at a local preschool. In parallel, several experts contributed various interesting perspectives on ageing. The programme depicted what happens when older people and children and young people encounter each other regularly, how this affects the health of older people and what the children learn. The results show that encounters across generational lines improve the health of older people.

The young and the old have always come together in Attendo homes. There are already cooperative programmes with preschools ongoing at several Attendo units, where the children are invited to come and socialise with the residents. This work will continue in the future and has been reinforced by the results of the study.

Attendo's quality work

Attendo's quality model rests on three pillars: satisfied customers, systematic improvements and best available knowledge. On-going development and monitoring of the necessary procedures, processes and documentation are of great importance for the quality of all health and social care. The work is conducted by local quality coordinators with the support of specialized quality functions. Recurring quality audits are conducted by Attendo, payors and authorities.

Read more about Attendo's quality work at www.attendo.com

Significant events in the third quarter

Acquisitions and divestments

Attendo has divested its operations in Norway

Effective 1 July 2020, Attendo divested its Norwegian operations to the nonprofit organisation Lovisenberg Omsorg. In total, the Norwegian operations generated about SEK 370m in annual revenue and made a marginal contribution to Attendo's profits. The operations were deconsolidated in the third quarter of 2020.

Other information

Number of shares

The total number of shares is 161,386,592. Attendo holds 473,750 treasury shares and the total number of shares outstanding as of 30 September 2020 was thus 160,912,842.

Number of employees

The average number of employees was 18,514 (16,984) in the third quarter and 18,374 (16,640) for the period of January–September.

Transactions with related parties

Transactions with related parties had a value of SEK 0m (0) during the period. All related-party transactions take place on market terms.

For further details, please refer to page 69 of Attendo's 2019 annual report.

Parent company, Attendo AB (publ)

The business of the parent company is to provide services to the subsidiaries and manage shares in subsidiaries. The company's expenses relate mainly to executive salaries, directors' fees and costs for external consultants.

Net sales for the period were SEK 10m (10), and were entirely related to services provided to subsidiaries. The loss for the year after net financial items was SEK -26m (-24). At the end of the quarter, cash and cash equivalents amounted to SEK 0m (0), shares in subsidiaries to SEK 6,494m (6,494), and non-restricted equity to SEK 5,969m (5,954).

Seasonal and calendar effects

Attendo's profitability is affected by factors including seasonal variations, weekends and national public holidays. For Attendo, public holidays and weekends have a negative effect on profitability mainly due to wage compensation for unsocial working hours. For example, profitability is affected by Easter in either the first or second quarter, depending on the quarter in which Easter falls, while the first and fourth quarters are affected by the Christmas and New Year's holidays.

Risks and uncertainties

Attendo conducts care and health care operations in the Nordics and is exposed to a number of different risks. Risk management, i.e. the work with identifying, managing and monitoring risks, is an important part of Attendo's operations and well-integrated in Attendo's day-to-day work.

Attendo divides identified risks into external risks, operational risks and financial risks. External risks related to the conditions for private companies to operate care businesses, political risks, regulatory risks and reputational risks. Operational risks refer to risks directly linked to Attendo's operations, such as occupancy, pricing and access to skilled employees. Financial risks are related to factors including access to capital, exchange rates, interest rates and liquidity.

The risks and a description of Attendo's risk management are presented in Attendo's annual report for 2019 on pages 24-27.

The corona situation presents serious challenges to Attendo's operations. The primary risks that are actualised, such as occupancy in our units and ensuring that we have enough employees capable of providing care in line with our high quality standards, are the same, however. We are working actively to manage these risks, and especially now in the highly unusual prevailing circumstances. At present, lower occupancy is the risk that is having the most short-term financial impact on the business. Due to the rapid development that has characterised both the spread of the Covid-19 virus and the measures that can and must be taken by Attendo and other social actors, there is significant uncertainty associated with all types of estimates of the operational or financial impact of the pandemic.

Accounting policies

The group applies International Financial Reporting Standards (IFRS) and interpretations from IFRIC, as adopted by the European Union, the Swedish Financial Reporting Board's standard RFR 1 Supplementary Accounting Rules for Groups and related interpretations and the Swedish Annual Accounts Act.

This interim report has been prepared according to IAS 34 Interim Financial Reporting and the Swedish Annual Accounts Act and should be read together with the annual report for 2019. The most significant accounting policies under IFRS, the reporting norm applied in preparing this interim report, are set forth in Note C1 on pages 49-53 of the annual report for 2019, which were applied to the preparation of this interim report.

As of the second quarter of 2020, Attendo has added "Items affecting comparability" as a line item on the income statement. Items classified as items affecting comparability are those where it is important to observe the effects on profit when profit for the period is compared with earlier periods, such as significant impairment losses and other significant, non-recurrent costs or income. Tax on items affecting comparability and tax items that are specifically classified as items affecting comparability are reported under "Tax" on the consolidated income statement. Items accounted for as items affecting comparability in a period are accounted for consistently in future periods by also reporting any reversals of these items as items affecting comparability. Segment reporting is presented before items affecting comparability, but items affecting comparability are allocated to the segments to which they refer in the notes to the financial statements.

Related to Covid-19, Attendo has received government support as compensation for the increased sickness absence through sick pay compensation. In the financial reporting, this is reported in accordance with IAS 20 Accounting for Government grants and information on state aid. All support and grants are reported in the income statement as cost reductions in the same period as the corresponding underlying cost.

Other and eliminations in the segment tables refers to costs for the head office and group eliminations.

The interim information on pages 1-14 is an integrated part of this financial report. The parent company's financial statements are prepared in accordance with the Swedish Annual Accounts Act and the Swedish Financial Reporting Board's recommendation, RFR 2 Accounting for Legal Entities.

Outlook

Attendo does not publish forecasts.

Danderyd, October 23, 2020

Martin Tivéus

CEO

Attendo's Annual reports are available on www.attendo.com

Auditor's limited review report

(translation of the Swedish original)

Attendo AB. reg. no. 559026-7885

Introduction

We have reviewed the condensed interim financial information (interim report) of Attendo AB as of 30 September 2020 and the nine-month period then ended. The board of directors and the CEO are responsible for the preparation and presentation of the interim financial information in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.

Scope of Review

We conducted our review in accordance with the International Standard on Review Engagements ISRE 2410, Review of Interim Report 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 is substantially less in scope than an audit conducted in accordance with International Standards on Auditing, ISA, and other generally accepted auditing standards in Sweden. 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. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act, regarding the Group, and with the Swedish Annual Accounts Act, regarding the Parent Company.

Stockholm, 23 October 2020

PricewaterhouseCoopers AB

Patrik Adolfson

Authorized public accountant

Financial reports

Consolidated Income Statement

			Jan-Sep	Jan-Sep	Jan-Dec
SEKm	Q3 2020	Q3 2019	2020	2019	2019
Net sales	2,983	3,013	9,223	8,881	11,935
Other operating income	6	47	65	90	110
Total revenue	2,989	3,060	9,288	8,971	12,045
Personnel costs	-1,941	-1,968	-6,233	-6,006	-8,133
Other external costs	-467	-508	-1,511	-1,460	-1,972
Operating profit before amortization and depreciations
(EBITDA)*	581	584	1,544	1,505	1,940
Amortization and depreciation of tangible and intangible
assets	-312	-290	-940	-832	-1 128
Operating profit after depreciation (EBITA)*	269	294	604	673	812
Operating margin (EBITA)*, %	9.0	9.8	6.5	7.6	6.8
Amortization of acquisition related intangible assets	-30	-34	-93	-105	-140
Operating profit (EBIT), excluding items affecting
comparability	239	260	511	568	672
Operating margin (EBIT), excluding items affecting
comparability %	8.0	8.6	5.5	6.4	5.6
Items affecting comparability	10	-	-961	-	-
Operating profit (EBIT)	249	260	-450	568	672
Operating margin (EBIT), %	8.3	8.6	-4.9	6.4	5.6
Net financial items	-166	-137	-480	-409	-565
Profit before tax	83	123	-930	159	107
Income tax	-19	-29	22	-38	-26
Profit for the period	64	94	-908	121	81
Profit margin, %	2.1	3.1	-9.8	1.4	0.7
Profit for the period attributable to:
The parent company shareholders	64	94	-909	121	81
Non-controlling interests	0	-	1	-	-
Basic earnings per share, SEK	0.40	0.58	-5.65	0.75	0.51
Diluted earnings per share, SEK	0.40	0.58	-5.65	0.75	0.51
Average number of shares outstanding, basic, thousands	160,908	160,879	160,875	160,875	160,877
Average number of shares outstanding, diluted, thousands	160,923	160,910	160,910	160,910	160,899

*Excluding items affecting comparability.

Consolidated Statement of Comprehensive Income

			Jan-Sep	Jan-Sep
SEKm	Q3 2020	Q3 2019	2020		2019 Jan-Dec 2019
Profit for the period	64	94	-908	121	81
Other comprehensive income for the period
Items that will not be reclassified to profit or loss
Remeasurements of defined benefit pension plans, net of tax	2	-1	-10	-10	-3
Items that may be reclassified to profit or loss Exchange rate differences on translating foreign operations
attributable to the parent company shareholders	-4	38	13	119	47
Other comprehensive income for the period	-2	37	3	109	44
Total comprehensive income for the period	62	131	-905	230	125
Total comprehensive income attributable to:
The Parent company shareholders	62	131	-906	230	125
Non-controlling interests	-	-	1	-	-

Consolidated Balance Sheet

SEKm	Sep 30, 2020	Sep 30, 2019	Dec 31, 2019
ASSETS
Non-current assets
Goodwill	6,720	7,470	7,446
Other intangible assets	525	556	564
Equipment	1,094	771	874
Right of use assets	9,950	8,280	8,856
Financial assets	403	282	331
Total non-current assets	18,692	17,359	18,071
Current assets
Trade receivables	1,004	1,036	1,090
Other current assets	446	532	400
Cash and cash equivalents	784	745	523
	2,234	2,313	2,013
Assets held for sale	19	121	186
Total current assets	2,253	2,434	2,199
Total assets	20,945	19,793	20,270
EQUITY AND LIABILITIES
Equity
Equity attributable to the Parent company shareholders	4,914	5,936	5,831
Non-controlling interests	23	-	-
Total equity	4,937	5,936	5,831
Non-current liabilities
Liabilities to credit institutions	2,790	3,017	2,836
Long-term lease liabilities*	9,979	8,097	8,640
Provisions for post-employment benefits	10	33	15
Other provisions	152	93	142
Other non-current liabilities	151	124	151
Total non-current liabilities	13,082	11,364	11,784
Current liabilities
Liabilities to credit institutions	4	37	2
Short-term lease liabilities**	910	838	862
Trade payables	489	166	256
Short-term provisions	119	62	85
Other current liabilities	1,400	1,386	1,431
	2,922	2,489	2,636
Liabilities held for sale	4	4	19
Total current liabilities	2,926	2,493	2,655
Total equity and liabilities	20,945	19,793	20,270

* Long-term lease liabilities include car leases amounting to SEK 11m (9m) and SEK 12m for the full year 2019.

** Short-term lease liabilities include car leases amounting to SEK 22m (23m) and SEK 19m for the full year 2019.

Consolidated Cash Flow Statement

Operational cash flow (alternative performance measure),			Jan-Sep	Jan-Sep	Jan-Dec
SEKm	Q3 2020**	Q2 2019	2020**	2019	2019
Operating profit (EBITA)*	269	294	604	673	812
Depreciation and amortization of tangible and intangible assets	312	290	940	832	1,128
Changes in working capital	-249	-217	199	-189	-60
Paid income tax	-26	12	-53	-132	-88
Other non-cash items	2	8	25	10	8
Cash flow after changes in working capital	308	387	1,715	1,194	1,800
Investments in tangible and intangible assets	-55	-77	-295	-232	-345
Divestment of tangible and intangible assets	8	90	16	100	104
Operating cash flow	261	400	1,436	1,062	1,559
Interest received/paid	-27	-26	-49	-77	-100
Interest expense for lease liabilities of real estate	-138	-120	-418	-346	-473
Repayment of lease liabilities	-224	-203	-673	-584	-790
Free cash flow	-128	51	296	55	196
Net change in assets and liabilities held for sale	0	242	196	312	260
Acquisition of operations	-6	-13	-120	-200	-239
Divestment of subsidiaries	-13	-	-13	87	87
Warrants	-	-	2	-	-
Dividends paid	-	-	-	-96	-96
Repayment of loans	-	-287	-225	-2,337	-5,388
New borrowings	59	-	127	-	2,789
Total cash flow	-88	-7	263	-2,179	-2,391
Cash and cash equivalents at the beginning of the period	867	746	523	2,896	2,896
Effect of exchange rate changes on cash	5	6	-2	28	18
Cash and cash equivalents at the end of the period	784	745	784	745	523

			Jan-Sep	Jan-Sep	Jan-Dec
Cash flow according to IFRS, SEKm	Q3 2020**	Q2 2019	2020**	2019	2019
Cash flow from operations	143	241	1,248	771	1,227
Cash flow from investing activities	-66	242	-216	67	-133
Cash flow from financing activities	-165	-490	-769	-3,017	-3,485
Total cash flow	-88	-7	263	-2,179	-2,391

*Excluding items affecting comparability.

**Including the Norwegian operations to be divested.

Consolidated Statement of Changes in Equity

SEKm	Jan-Sep 2020	Jan-Sep 2019	Jan-Dec 2019
Opening balance	5,831	5,801	5,801
Total comprehensive income attributable to: The Parent company shareholders Non-controlling interests	-906 1	230 -	125 -
Transactions with owners
Vested shares	1	-	2
Transactions with non-controlling interest	-15	-	-
Warrants	2	-	-
Share-savings plan	-	1	-1
Dividend	-	-96	-96
Total transactions with owners	-12	-95	-95
Non-controlling interests	23	-	-
Closing balance	4,937	5,936	5,831

Segment in summary

SEKm		Attendo Scandinavia		Attendo Finland		Other and eliminations		Consolidated
		Q3 2020 Q3 2019		Q3 2020 Q3 2019	Q3 2020 Q3 2019		Q3 2020 Q3 2019
Net sales	1,410	1,584	1,573	1,429	-	-	2,983	3,013
Own operations	1,060	1,132	1,544	1,389	-	-	2,604	2,521
Outsourcing	350	452	29	40	-	-	379	492
Operating profit
(EBITA)*	163	252	121	60	-15	-17	269	294
Operating margin
(EBITA)*, %	11.6	15.9	7.7	4.2	-	-	9.0	9.8
Adjusted EBITA*	118	210	59	11	-15	-17	162	204
Adjusted operating
margin (EBITA)*, %	8.4	13.3	3.8	0.8	-	-	5.4	6.8

SEKm		Attendo Scandinavia			Attendo Finland			Other and eliminations			Consolidated
	Jan Sep 2020	Jan Sep	2019 FY 2019	Jan Sep 2020	Jan Sep	2019 FY 2019	Jan Sep 2020	Jan Sep	2019 FY 2019	Jan Sep 2020	Jan Sep	2019 FY 2019
Net sales	4,552	4,709	6,305	4,671	4,172	5,630	-	-	-	9,223	8,881	11,935
Own operations	3,310	3,361	4,497	4,549	4,041	5,460	-	-	-	7,859	7,402	9,957
Outsourcing	1,242	1,348	1,808	122	131	170	-	-	-	1,364	1,479	1,978
Operating profit
(EBITA)*	503	543	715	152	183	163	-51	-52	-66	604	673	812
Operating margin
(EBITA)*, %	11.1	11.5	11.3	3.3	4.4	2.9	-	-	-	6.5	7.6	6.8
Adjusted EBITA*	369	430	555	-30	28	-48	-51	-52	-66	288	406	441
Adjusted operating
margin (EBITA)*, %	8.1	9.1	8.8	-0.6	0.7	-0.9	-	-	-	3.1	4.6	3.7

*Excluding items affecting comparability of SEK -961m.

Net financial items

			Jan-Sep	Jan-Sep,	Jan-Dec
SEKm	Q3 2020	Q3 2019	2020	2019	2019
Net interest expense (excluding lease liabilities for real estate)	-14	-13	-44	-44	-57
Interest expense, lease liabilities for real estate	-138	-120	-418	-346	-473
Other	-14	-4	-18	-19	-35
Net financial items	-166	-137	-480	-409	-565

Investments

			Jan-Sep,	Jan-Sep	Jan-Dec
SEKm	Q3 2020	Q3 2019	2020	2019	2019
Investments
Investments in intangible assets	2	6	8	12	18
Investments in tangible assets	53	71	287	220	327
Divestments of tangible and intangible assets	-8	-90	-16	-100	-104
Total net investments	47	-13	279	132	241
Intangible assets acquired through business combination
Goodwill	5	-5	97	93	148
Customer relations	5	2	57	31	87
Other	0	0	0	0	0
Total intangible assets acquired through business
combination	10	-3	154	124	235

Financial assets and liabilities

SEKm	Level	Sep 30, 2020	Sep 30, 2019	Dec 31, 2019
ASSETS
Financial assets measured at fair value
Trade receivables		1,004	1,036	1,090
Cash and cash equivalents		784	745	523
Total financial assets		1,788	1,781	1,613
LIABILITIES
Financial liabilities at fair value through profit or loss
Contingent considerations	3	0	22	0
Financial liabilities measured at amortised cost
Borrowings		2,794	3,054	2,838
Lease liabilities		10,889	8,935	9,502
Trade payables		489	166	256
Total financial liabilities		14,172	12,177	12,596

The table shows the Group's significant financial assets and liabilities. Assets and liabilities recognized as loans and receivables, and other financial liabilities are valued at amortized cost. Fair value for all financial assets and liabilities are equal to the carrying value. For complete table and further information see Attendo's Annual report 2019, note C24.

Valuation technique

Level 3: The fair value of contingent considerations is based on estimated outcome from the contractual clauses in

the share purchase agreements.

Pledged assets and contingent liabilities

SEKm	Sep 30, 2020	Sep 30, 2019	Dec 31, 2019
Assets pledged as collateral	66	71	73
Contingent liabilities*	4,554	5,317	5,040

* Leases of assets not yet in use are reported in contingent liabilities. Contingent liabilities also include a potential outflow of resources to complete

acquisitions of real estate and operations from a few local authorities in Finland.

Income Statement with IFRS16 impacts

The effects of the implementation of IFRS 16 leases on the income statement are shown below.

		Q3, 2020			Q3, 2019			Jan-Dec, 2019
		IFRS 16	Excl. IFRS		IFRS 16	Excl. IFRS		IFRS 16	Excl. IFRS
SEKm	Reported	effect	16-effect**	Reported	effect	16-effect**	Reported	effect	16-effect**
Net sales	2,983		2,983	3,013		3,013	11,935	-	11,935
Other operating income	6	-1	5	47	-3	44	110	-21	89
Total revenue	2,989	-1	2,988	3,060	-3	3,057	12,045	-21	12,024
Personnel costs	-1,941		-1,941	-1,968		-1,968	-8,133		-8,133
Other external costs	-467	-362	-829	-508	-322	-830	-1,972	-1,263	-3,236
Operating profit before amortization and
depreciation (EBITDA)*	581	-363	218	584	-325	259	1,940	-1,284	655
Amortization and depreciation of tangible and
intangible assets	-312	256	-56	-290	235	-55	-1,128	913	-215
Operating profit (EBITA)*	269	-107	162	294	-90	204	812	-371	441
Operating margin (EBITA)* %	9.0		5.4	9.8		6.8	6.8		3.7
Amortization of acquisition
related intangible assets	-30		-30	-34	-	-34	-140	-	-140
Operating profit,
excluding items affecting
comparability (EBIT)	239	-107	132	260	-90	170	672	-371	301
Operating margin (EBIT),
excluding items affecting
comparability %	8.0		4.4	8.6		5.6	5.6		2.5
Items affecting comparability	10	-2	8	-	-	-	-	-	-
Operating profit (EBIT)	249	-109	140	260	-90	170	672	-371	301
Operating margin (EBIT) %	8.3		4.7	8.6		5.6	5.6		2.5
Net financial items	-166	138	-28	-137	120	-17	-565	473	-92
Profit before tax	83	29	112	123	30	153	107	102	209
Income tax	-19	-7	-26	-29	-6	-35	-26	-20	-46
Profit for the period from
continuing operations	64	22	86	94	24	118	81	82	163
Profit margin %	2.1		2.9	3.1		3.9	0.7		1.4

* Excluding items affecting comparability.

** This column shows adjusted EBITDA and adjusted EBITA.

		Jan-Sep, 2020			Jan-Sep, 2019
SEKm	Reported	IFRS 16 effect	Excl. IFRS 16- effect**	Reported	IFRS 16 effect	Excl. IFRS 16- effect**
Net sales	9,223		9,223	8,881		8,881
Other operating income	65	-1	64	90	-9	81
Total revenue	9,288	-1	9,287	8,971	-9	8,962
Personnel costs	-6,233		-6,233	-6,006		-6,006
Other external costs	-1,511	-1 086	-2,597	-1,460	-930	-2,390
Operating profit before amortization and depreciation (EBITDA)*	1,544	-1 087	457	1,505	-939	566
Amortization and depreciation of tangible and intangible assets	-940	771	-169	-832	672	-160
Operating profit (EBITA)*	604	-316	288	673	-267	406
Operating margin (EBITA)* %	6.5		3.1	7.6		4.6
Amortization of acquisition related intangible
assets	-93		-93	-105		-105
Operating profit, excluding items affecting
comparability (EBIT)	511	-316	195	568	-267	301
Operating margin (EBIT), excluding items
affecting comparability %	5.5		2.1	6.4		3.4
Items affecting comparability	-961	135	-826	-	-	-
Operating profit (EBIT)	-450	-181	-631	568	-267	301
Operating margin (EBIT) %	-4.9			6.4		3.4
Net financial items	-480	418	-62	-409	346	-63
Profit before tax	-930	237	-693	159	79	238
Income tax	22	-48	-26	-38	-16	-54
Profit for the period	-908	189	-719	121	63	184
Profit margin %	-9.8		-7.8	1.4		2.1

* Excluding items affecting comparability.

** This column shows adjusted EBITDA and adjusted EBITA.

Key Data

		Q3 2020	Q3 2019	Jan-Sep 2020	Jan-Sep 2019	Jan-Dec 2019
Organic growth	%	3.0	1.6	4.3	1.6	2.1
Acquired growth	%	-2.4	4.6	-0.2	5.4	4.8
Changes in currencies	%	-1.6	1.3	-0.2	1.7	1.7
Operating margin (EBITA margin) r12 *	%	-	-	6.1	7.3	6.8
Adjusted operating margin (EBITA margin) r12 *	%	-	-	2.6	4.3	3.7
Working capital**	SEKm	-	-	-558	-45	-283
Return on capital employed , *	%	-	-	3.4	3.9	3.6
Net debt to equity ratio**	times	-	-	2.6	1.9	2.0
Equity to asset ratio **	%	-	-	24	30	29
Net debt / EBITDA r12 , *	times	-	-	6.5	5.8	6.1
Adjusted net debt / adjusted EBITDA r12 , *	times	-		3.8	3.3	3.6
Free cash flow	SEKm	-128	51	296	55	196
Net investments	SEKm	-47	13	-279	-132	-241
Average number of employees		18,514	16,984	18,374	16,640	16,499
Key data per share
Earnings per share, basic	SEK	0.40	0.58	-5.65	0.75	0.51
Earnings per share, diluted	SEK	0.40	0.58	-5.65	0.75	0.51
Adjusted earnings per share, diluted	SEK	0.64	0.90	1.12	1.66	1.71
Equity per share, basic	SEK	-	-	30.54	36.90	36.24
Equity per share, diluted	SEK	-	-	30.54	36.89	36.24
Average number of shares outstanding, basic	thousands	160,908	160,879	160,875	160,875	160,877
Average number of shares outstanding, diluted	thousands	160,923	160,910	160,910	160,910	160,899
Number of shares, end of period	thousands	161,387	161,386	161,387	161,386	161,387
Number of treasury shares, end of period	thousands	474	507	474	507	496
Number of shares outstanding, end of period	thousands	160,913	160,879	160,913	160,879	160,890

* Excluding items affecting comparability

** Including the divested Norwegian operations

Quarterly Data

SEKm	Q4 2018	Q1 2019	Q2 2019	Q3 2019	Q4 2019	Q1 2020	Q2 2020	Q3 2020
Total net sales	2,818	2,878	2,990	3,013	3,054	3,128	3,112	2,983
– Net sales, own operations	2,302	2,382	2,499	2,521	2,555	2,628	2,627	2,604
– Net sales, outsourcing	516	496	491	492	499	500	485	379

SEKm	Q4 2018	Q1 2019	Q2 2019	Q3 2019	Q4 2019	Q1 2020	Q2 2020	Q3 2020
Total net sales	2,818	2,878	2,990	3,013	3,054	3,128	3,112	2,983
– Net sales Scandinavia	1,563	1,537	1,588	1,584	1,596	1,594	1,548	1,410
– Net sales Finland	1,255	1,341	1,402	1,429	1,458	1,534	1,564	1,573
Operating profit (EBITDA) * Operating margin (EBITDA margin),%	433	526	395	584	435	492	471	581
*	15.4	18.3	13.2	19.4	14.2	15.7	15.1	19.5
Operating profit (EBITA) *	176	258	121	294	139	182	153	269
Operating margin (EBITA margin),% *	6.3	9.0	4.0	9.8	4.6	5.8	4.9	9.0
Profit for the period	-4	66	-39	94	-40	3	-975	64
Profit margin, %	-0.1	2.3	-1.3	3.1	-1.3	0.1	-31.3	2.1
Earnings per share basic, SEK	-0.02	0.41	-0.24	0.58	-0.25	0.02	-6.06	0.40
Earnings per share diluted, SEK	-0.02	0.41	-0.24	0.58	-0.25	0.02	-6.06	0.40
Adjusted operating profit (EBITDA) * Adjusted operating margin (EBITDA	147	210	97	259	90	141	98	218
margin),% *	5.2	7.3	3.2	8.6	2.9	4.5	3.1	7.3
Adjusted operating profit (EBITA) * Adjusted operating margin (EBITA	98	160	42	204	35	84	42	162
margin),% *	3.5	5.5	1.4	6.8	1.1	2.7	1.3	5.4
Average number of employees	15,789	16,370	16,566	16,984	16,163	17,950	18,659	18,514
Own operations
Number of units in operation**	585	598	599	604	604	610	619	613
Number of beds in operation***	15,288	15,923	16,216	16,470	16,618	17,260	17,650	17,485
Number of beds under construction***	2,462	2,401	2,335	2,094	1,980	1,423	1,110	1,228
Number of opened beds (r12)***	2,409	2,282	1,752	1,867	1,950	2,186	2,042	1,630
Occupancy in own homes,%***	82	81	79	80	80	80	78	79

* Excluding items affecting comparability

** Refers to all units in Own operations.

*** Nursing homes for older people, homes for people with disabilities and social psychiatry.

Parent Company Income Statement

SEKm	Q3 2020			Q3 2019 Jan-Sep 2020 Jan-Sep 2019 Jan-Dec 2019
Net sales	4	3	10	10	13
Personnel costs	-8	-6	-22	-20	-26
Other external costs	-2	-3	-7	-8	-9
Operating profit	-6	-6	-19	-18	-22
Net financial items	-2	-2	-7	-6	-9
Profit after financial items	-8	-8	-26	-24	-31
Group contributions	-	-	-	-	48
Profit before tax	-8	-8	-26	-24	17
Income tax	-	-	-	-	-4
Profit for the period	-8	-8	-26	-24	13

Profit for the period corresponds to total comprehensive income.

Parent Company Balance Sheet

SEKm	Sep 30, 2020	Sep 30, 2019	Dec 31, 2019
ASSETS
Non-current assets
Shares in subsidiaries	6,494	6,494	6,494
Total non-current assets	6,494	6,494	6,494
Current assets
Receivables to group companies	-	5	49
Other receivables	5	4	1
Cash and cash equivalents	0	0	0
Total current assets	5	9	50
Total assets	6,499	6,503	6,544
EQUITY AND LIABILITIES
Equity	5,970	5,955	5,993
Current liabilities
Liabilities to group companies Other liabilities	516 13	533 15	538 13
Total current liabilities	529	548	551
Total equity and liabilities	6,499	6,503	6,544

Information to shareholders and analysts

Financial Calendar

Year-end report January-December 2020 10 February 2021 Annual Report 2020 week 11, 2021 Interim report January-March 2021 6 May Interim report January-June 2021 22 July Interim report January-September 2021 26 October

Telephone conference

A telephone conference will be held on 23 October 2020 at 10.00 (CET) with Attendo's CEO Martin Tivéus and CFO Fredrik Lagercrantz. For participation please dial in on the following number:

SE:	+46 8 505 58 353
FI:	+358 9 817 105 21
UK:	+44 333 300 90 34

Link to webcast

For further information please contact:

Fredrik Lagercrantz CFO Tel. +46 8 586 252 00

Andreas Koch Communications and IR Director Tel. +46 70 509 77 61

This is information that Attendo AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above at 08.00 CET on 23 October 2020.

Forward-looking information

This report contains forward-looking information based on current expectations of the Attendo's management. Although management deems that the expectations presented by such forward-looking information are reasonable, no guarantee can be given that these expectations will prove correct. Accordingly, the actual future outcome could vary considerably compared to what is stated in the forward-looking information, due to such factors as changed market conditions for Attendo's services and more general conditions regarding business cycles, market and competition, changes in legal requirements and other political measures, and fluctuation in exchange rates.

Attendo AB (publ) Vendevägen 85B 182 91 Danderyd

Tel +46 8 586 251 00 Fax +46 8 586 250 01 www.attendo.com

Company number: 559026-7885

Attendo's operations

Attendo is the leading private provider of care services in the Nordics. The company has operations in Sweden, Finland and Denmark. Attendo is the largest private care provider in Sweden and Finland. Attendo is a locally based company and has more than 700 units in operation in about 300 municipalities. The company has about 25,000 employees. With the vision of empowering the individual, Attendo provides services within care for older people, care for people with disabilities, social psychiatry and care for individuals and families.

Attendo provides services through two business areas, Attendo Scandinavia and Attendo Finland.

Attendo provides care services under two contract models:

• Own operations, where Attendo provides services in own controlled units/premises or provides home care in customer choice models. Attendo has own units within care for older people, people with disabilities, social psychiatry and care for individuals and families.
• Outsourcing operations, where Attendo provides services in publicly controlled units/premises or provides home care services based on outsourcing contracts. Attendo has outsourced units for care for older people, care for people with disabilities and care for individuals and families.

Local authorities (mainly municipalities) are usually the contracting authorities for a large majority of Attendo's service offerings, but contract types and duration of contracts vary depending on the contract model and service offering. Own operations are normally based on framework agreements and outsourcing operations are based on outsourcing contracts, following a tender process. The contract period is typically 2-5 years.

Definitions of key data and alternative performance measures (APM)

Explanations of financial measures

Acquired growth (APM)	The net between the increase in the company's net sales from businesses and operations acquired during the past 12 months and loss of net sales from businesses and operations divested during the past 12 months.
	Adjusted earnings per share (APM) Profit or loss for the period attributable to the parent company shareholders excluding effects from amortization of acquisition-related intangible assets as well effects from the implementation of IFRS 16 and items affecting comparability and related tax items divided by the number of outstanding shares after dilution.
Adjusted EBITA (APM)	See the definition of operating profit (EBITA) below. Adjusted operating profit (EBITA) is operating profit according to the previous reporting standard IAS 17, i.e. excluding the effects of the implementation of IFRS 16. Car leases were reported as finance leases under the previous standard. Consequently, it is the effects of leases of real estate under IFRS 16 that differentiate operating profit from adjusted operating profit. See the income statement including effects of IFRS 16 for more information.
Adjusted EBITDA (APM)	See the definition of operating profit (EBITDA) below. Adjusted operating profit (EBITDA) is operating profit according to the previous accounting standard IAS 17, i.e., excluding the effects of the implementation of IFRS 16. Car leases were reported as finance leases under the previous standard. Consequently, it is the effects of leases of real estate under IFRS 16 that differentiate operating profit from adjusted operating profit. See the income statement including effects of IFRS 16 for more information.
Adjusted net debt (APM)	See the definition of net debt below. Adjusted net debt is net debt according to the previous reporting standard IAS 17, i.e., excluding the IFRS 16 effect on lease liabilities attributable to right-of-use assets for real estate. See the table showing net debt calculation for more information.
Adjusted operating margin (EBITA) (APM)	Adjusted operating profit (EBITA) divided by net sales.
Adjusted operating margin (EBITDA) (APM)	Adjusted operating profit (EBITDA) divided by net sales.
Capital employed	Equity plus interest-bearing liabilities and provisions for post-employment benefits.
Cash and cash equivalents	Cash and bank balances, short term investments and derivatives with a positive fair value.
Earnings per share	Profit or loss for the period attributable to the parent company shareholders divided by average shares outstanding.
Equity/assets ratio	Equity divided by total assets.
Equity per share	Equity attributable to the parent company shareholders divided by average shares outstanding.
Free cash flow (APM)	Free cash flow is a measure of the cash and cash equivalents the group generates in operating activities and investing activities. The performance measure is defined as operational cash flow after changes in working capital, cash flow from investments in and divestments of tangible and intangible assets, as well as received/paid interest, interest expense for lease liabilities of real estate and repayment of lease liabilities according to IFRS 16. See the Consolidated cash flow table for reconciliation.
Items affecting comparability	Items whose effects on profit are important to pay attention to when profit for the period is compared with earlier periods, such as significant impairment losses and other significant, non recurring costs or income.
Net debt (APM)	Net debt is a way of describing the group's indebtedness and its ability to repay its debt with cash and cash equivalents if all debts were to be due for payment today. Net debt is defined as interest bearing liabilities plus provisions for post-employment benefits minus cash and cash equivalents. Net debt is presented both including and excluding lease liabilities attributable to right-of-use

	assets for real estate. See the section Financial position in this report for a reconciliation of net debt.
Net debt to equity ratio	Net debt divided by equity.
Net investments	The net of investments in and divestments of tangible and intangible assets, excluding acquisitions and divestment of operations as well as investments in and divestments of assets held for sale.
Organic growth (APM)	Attendo reports organic growth as a performance measure to show underlying sales development excluding acquisitions and currency effects. The performance measure is calculated as sales growth excluding acquisitions and changes in exchange rates. See Note C33 in the 2019 annual report for a reconciliation of the performance measure on a full year basis.
Operating margin (EBIT margin)	Operating profit or loss (EBIT) divided by net sales. Operating margin (EBIT margin) is presented including and excluding items affecting comparability.
	Operating margin (EBITA margin) Operating profit (EBITA) divided by net sales.
Operating profit (EBIT) (APM)	Attendo reports operating profit (EBIT) as a performance measure because it shows the development of operating activities independent of financing. Operating profit (EBIT) refers to profit before financial items and tax. Operating profit (EBIT) is presented including and excluding items affecting comparability. See the Consolidated income statement for a reconciliation of EBIT.
Operating profit (EBITA) (APM)	Operating profit (EBITA) is used as a performance measure because it shows the development of operating activities without the effect of amortisation and impairments of intangible assets from acquired companies and independently of financing. Operating profit (EBITA) refers to profit before amortisation of acquisition-related intangible assets, financial items and tax. Operating profit (EBITA) is excluding items affecting comparability. See the Consolidated income statement for a reconciliation of EBITA.
	Operating profit (EBITDA) (APM) Attendo reports operating profit (EBITDA) as a performance measure because it shows the development of operating activities independent of financing and investments. Operating profit (EBITDA) refers to profit or loss before depreciation, amortisation and impairments. Operating profit (EBITDA) is excluding items affecting comparability. See the Consolidated income statement for a reconciliation of EBITDA.
Profit (-loss) for the period	Profit or loss for the period attributable to parent company shareholders and non-controlling interest.
Profit margin	Profit or loss for the period divided by net sales.
r12 "rolling 12 months"	The sum of the period's past 12 months.
	Return on capital employed (APM) Attendo reports return on capital employed because it shows profits in relation to the capital used in operations. The definition of return on capital employed is operating profit (EBIT) excluding items affecting comparability for the past 12 months divided by average capital employed.
Working capital (APM)	Working capital is a key performance measurement for optimising cash generation. The performance measure is defined as current assets excluding cash and cash equivalents and current interest-bearing assets minus current non-interest-bearing liabilities and provisions. Assets and liabilities held for sale are not included in working capital. See Note C33 in the 2019 annual report for a reconciliation of the performance measure on a full year basis.

Explanations of operating measures

Mature unit	Unit opened during the calendar year of 2017 or earlier, excluding units from the acquisition of Mikeva.
Occupancy	The number of occupied beds divided by the number of available beds. Occupancy is a weighted average in the last month of each reporting period.

Attendo AB (publ) Vendevägen 85B 182 91 Danderyd

Tel +46 8 586 251 00 Fax +46 8 586 250 01 www.attendo.com

Company number: 559026-7885