Dedicare

Quarterly Report • Oct 24, 2024

Chief Executive Officer's statement

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Interim Report 1 January – 30 September 2024

Market still challenging in the third quarter

Third quarter 2024

• Net sales SEK 460.9 million (524.5)
• EBITA SEK 11.2 million (40.6), adjusted for nonrecurring items SEK 19.0 million (40.6)
• EBITA margin 2.4 percent (7.7), adjusted for nonrecurring items 4.1 percent (7.7)
• EBIT SEK 9.0 million (36.7), adjusted for nonrecurring items SEK 16.8 million (36.7)
• EBIT margin 2.0 percent (7.0), adjusted for nonrecurring items 3.6 percent (7.0)
• Profit after financial items SEK 8.9 million (37.2)
• Profit for the period SEK 6.9 million (29.2)
• Basic earnings per share SEK 0.72 (3.05)
• Diluted earnings per share SEK 0.71 (3.02)

The period January - September 2024

• Net sales SEK 1,330.7 million (1,506.5)
• EBITA SEK 49.8 million (120.2), adjusted for non-recurring items SEK 60.5 million (120.2)
• EBITA margin 3.7 percent (8.0), adjusted for non-recurring items 4.5 percent (8.0)
• EBIT SEK 43.0 million (109.1 ), adjusted for non-recurring items SEK 53.7 million (109.1)
• EBIT margin 3.2 percent (7.2), adjusted for non-recurring items 4.0 percent (7.2)
• Profit after financial items SEK 42.0 million (98.4)
• Profit for the period SEK 32.7 million (76.7)
• Basic earnings per share SEK 3.42 (8.02)
• Diluted earnings per share SEK 3.39 (7.94)

Performance measures

	Q3 2024	Q3 2023	Jan-Sep 2024	Jan-Sep 2023	Full-year 2023
Net sales, SEK million	460.9	524.5	1,330.7	1,506.5	1,970.7
Growth, %	-12.1%	16.5%	-11.7%	18.7%	11.5%
EBITDA, SEK million	16.5	43.7	61.2	128.7	172.8
EBITDA margin, %	3.6%	8.3%	4.6%	8.5%	8.8%
EBITA, SEK million	11.2	40.6	49.8	120.2	161.8
EBITA margin, %	2.4%	7.7%	3.7%	8.0%	8.2%
EBITA adjusted for non-recurring items, SEK million	19.0	40.6	60.5	120.2	161.8
EBITA margin adjusted for non-recurring items, %	4.1%	7.7%	4.5%	8.0%	8.2%
EBIT, SEK million	9.0	36.7	43.0	109.1	148.4
EBIT margin, %	2.0%	7.0%	3.2%	7.2%	7.5%
EBIT adjusted for non-recurring items, SEK million	16.8	36.7	53.7	109.1	148.4
EBIT margin adjusted for non-recurring items, %	3.6%	7.0%	4.0%	7.2%	7.5%
Net profit for the period, SEK million	6.9	29.2	32.7	76.7	110.4
Basic earnings per share, SEK	0.72	3.05	3.42	8.02	11.55
Diluted earnings per share, SEK	0.71	3.02	3.39	7.94	11.44
Cash flow from operating activities, SEK million	24.6	38.3	47.4	89.6	145.4
Equity per share, SEK	29.40	29.85	29.40	29.85	32.41

Chief Executive Officer's statement

"The market was still challenging in the third quarter"

The weaker market for contracted staff that we've encountered in recent quarters also persisted in the third quarter of the year. Net sales and EBITA fell sharply against a strong comparative quarter of the previous year, and our EBITA margin excluding non-recurring items was 4.1 percent. Our cost savings will have their full impact in the fourth quarter and work on improving our operational efficiency continues. In September, the group gained a new management, with me as CEO and Managing Director. It's something of a challenge to take this on in a market in sharp decline. But Dedicare has long-term experience of healthcare staffing, and we know the sector is cyclical. We're currently in a negative phase, and are used to adapting to the market's changing needs. I'm looking forward to managing positive progress for the group over the coming years.

The Dedicare group's net sales were SEK 460.9 million in the third quarter, a 12 percent decrease on the corresponding period of the previous year. EBITA fell sharply to SEK 19.0 million (40.6) excluding SEK 7.8 million of items affecting comparability; our EBITA margin excluding items affecting comparability was 4.1 percent (7.7). Mainly, the reduction is due to negative market progress in Sweden, and to some extent Norway, as well as a strong comparative quarter. The quarter's items affecting comparability relate to our change of Managing Director and continued restructuring of our business.

To adapt to a weaker market, over the past year, Dedicare has taken a series of actions, mainly in Sweden, and in the quarter, we also completed the cost savings programme initiated in May. This will have its full impact in the fourth quarter and means we have created better potential for next year through a lower cost base. Our ongoing and longterm work on increasing our operational efficiency continues.

Like last year, we got two excellent endorsements as an employer in the quarter: firstly, Dedicare placed on Allbright's Green List of Sweden's most gender-equal listed companies. And secondly, Dedicare Norway ranked in Great Place to Work's top 100 European workplaces again this year (7th place). I know that our great corporate culture, which unites hard work and having fun, lies behind these endorsements.

The third quarter presented differing challenges to our segments. In Norway, net sales were down by just over 7 percent to SEK 314.2 million, equivalent to a 2.1 percent reduction in local currency. EBITA fell sharply to SEK 19.2 million, equivalent to an EBITA margin of 6.1 percent (9.9). In the second quarter, NHO (the Confederation of Norwegian Enterprise) stated that Norway's healthcare staffing market had contracted by 10 percent, while competition had increased, with price pressure resulting. Acapedia, our preschool operation, continued to generate stable revenue and EBITA margin in the quarter.

Since September, Dedicare Norway has been headed up by Lene Langås Ødegård, who was Interim COO of our Norwegian operation for a period. We've been working together for many years, and I'm fully confident about following her leadership of our Norwegian operation.

In Sweden, net sales fell by 30 percent-plus to SEK 75.9 million, while EBITA was negative for the second consecutive quarter at SEK -1.8 million (6.7) excluding SEK 0.9 million of items affecting comparability. The Swedish healthcare staffing market has been hit hard by contracting limits, and SKR (the Swedish Association of Local Authorities and Regions) stated that overall, the contracting market was down by 30 percent in the first half of this year. We note that the whole sector is being adversely affected by the current situation.

In Denmark, net sales were SEK 59.7 million, a drop of some 7 percent. Profitability was stable, with the EBITA margin at 5.2 percent (5.0). Doctor staffing performed well in the year. However, contracting limits on nurses did cause a sales decrease. Because we had already restructured our business in late-2023, we can now address the current demand level in doctor staffing positively.

In the UK, net sales for the quarter were SEK 15.5 million, an increase of some 11 percent in the quarter. EBITA fell by SEK 0.4 million (1.5) due to upscaled initiatives in its organisation in the period. Because of a slow UK market for contracting, our main focus in the UK is on international recruitment, which progressed well, and where our actions include providing healthcare in the Falkland Islands and other non-European territories with British doctors and nurses.

Chief Executive Officer's statement

Finally, I'd like to say a few words looking ahead: I've become our CEO and MD at a time when there are challenges on all our markets. As yet, we see no clear signs of improvement on the Swedish healthcare staffing market, and we also expect the stiffer competition in Norway to persist. Meanwhile, we have now largely adapted our cost base and organisation to the current market conditions. Additionally, healthcare staffing remains a multi-billion kronor market where there's room to grow, even if the market is declining overall. Despite Dedicare being hard hit by a deteriorated market, we do enjoy the benefit of having the major nationwide framework agreements in both Sweden and Norway. We also have a big advantage in our long-term experience of healthcare staffing, in our size, conferring us with financial strength, and in our diversified business, which makes us less vulnerable than most other players in the staffing sector.

Going forward, we'll keep focusing on sales and improving operational efficiency. We'll also invest in growth by winning market shares on what is currently a declining market. The underlying trend of an aging population and greater need for healthcare is sustaining.

Accordingly, we know that the need for healthcare staff will grow through the coming years, which is where healthcare staffing providers serve a vital function—we help healthcare to overcome the challenge of skills supply, helping enable more equivalent healthcare. I'm looking forward to continuing this vital work alongside all Dedicare's staff and consultants.

Bård Kristiansen, CEO and Managing Director

Highlights of previous periods in 2024

• Dedicare adjusted its segment reporting, with shareholder-related expenses reported in the Groupwide segment. Previously, these expenses were allocated between all the group's segments.
• Dedicare updated its profitability target for 2024, with the Board of Directors deciding to change the profitability target to an EBITA margin of 7.0 percent over time. This enables profitability performance to be tracked without the effect of acquisition-related assets.
• For the second consecutive year, Great Place to Work made Dedicare Norway's Workplace of the Year 2024.
• Because of prevailing market conditions in Swedish healthcare staffing, and to some extent, intensified competition on the Norwegian market, Dedicare's Management and Board decided on a savings programme, which is expected to generate yearly savings of approx. SEK 15 million, with full effect from the fourth quarter 2024.
• Dedicare made a change to its management in Sweden, with Bård Kristiansen, CEO of Dedicare Norway since 2017, taking over as Interim CEO of Dedicare Sweden. Eva Brunnberg has left the company, and thus her position as CEO of Dedicare Sweden.
• Dedicare has been reappointed to provide doctors, specialist physicians, psychologists and other healthcare staff for all hospitals across all Norway's healthcare regions. Estimated yearly sales are SEK 80- 100 million, and this new deal has a two-year term with a further two-year extension option.

Highlights in the third quarter2024

• Bård Kristiansen appointed as new CEO & MD of Dedicare AB (publ) after Krister Widström voluntarily left his position.
• Lene Langås Ødegaard becomes Norway's new CEO and joins Group Management.
• Dedicare upscales its investment in life science when Anna-Lena Mann becomes CEO of Dedicare Life Science AB and its pan-Nordic business in August.
• Dedicare initiates a keynote partnership with Doctors without Borders, supporting and consolidating global initiatives in health & well-being.
• In the quarter, Dedicare makes Allbright's Green List of Sweden's most gender-equal listed companies.
• Dedicare Norway ranks 7th out of thousands of companies across Europe in Great Place to Work's listing of Europe's best workplaces.

Highlights after the end of the period

• No significant events have occurred after the end of the period.

(for more information go to: www.dedicaregroup.com)

Financial information—the group's progress

Net sales

Third quarter 2024

Consolidated net sales for the third quarter decreased by 12.1 percent to SEK 460.9 million (524.5) compared to a strong third quarter of the previous year. For more information on group segments, see note 1.

Net sales per operating segment Q3

In Sweden, continued limits on contracting in healthcare staff meant that net sales for the quarter were down by 30.5 percent against a strong comparative quarter, to SEK 75.9 million (109.2). SKR stated that Sweden's healthcare staffing market had contracted by a total of 30 percent in the first half-year 2024. The transition to Sweden's new nationwide agreement for Sweden's regions also contributed to customers placing their summer staffing orders late, and this had a negative impact on the third-quarter sales level.

NHO has reported that Norway's healthcare staffing market was down by 10 percent. Combined with price pressure and greater Nordic-wide competition, mainly in doctor staffing, this had an adverse impact on Dedicare. Acapedia's preschool operation continued its high growth in the third quarter. Quarterly net sales in Norway were down by 7.2 percent to SEK 314.2 million (338.4). The Norwegian krone appreciated in the quarter, and adjusted for currency effects, net sales were down by 2.1 percent, a NOK 6.8 million decrease.

Net sales for the quarter in Denmark fell by 6.9 percent to SEK 59.7 million (64.1). Adjusted for currency effects, net sales decreased by 3.9 percent, a DKK 1.6 million reduction relating to limits on nurses on long-term contract introduced in the second quarter of 2023, where deals expiring in the third quarter were not extended.

In the UK, net sales for the quarter were SEK 15.5 million (14.0), a 10.7 percent increase. Adjusted for currency effects, net sales increased by GBP 0.1 million, or 12.3 percent. International recruitment and staffing performed well, while UK doctor staffing decreased.

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The period January – September 2024

Consolidated net sales for the period Jan-Sep 2024 decreased by 11.7 percent to SEK 1,330.7 million (1,506.5). For most operations, the comparative period was strong. For more information on group segments, see note 1.

Net sales per operating segment January - September

In Sweden, continued limits on contracting staff resulted in net sales for the period decreasing by 30.4 percent compared to a very robust comparative quarter to SEK 257.4 million (369.7). The transition to the new nationwide agreement for Sweden's regions contributed to extra market hesitancy early in the year. This deal came into effect in January 2024, and the regions have signed up progressively. A healthcare strike and overtime ban in the period contributed to the market placing orders late, which made providing staff problematic.

The new deal for nurse staffing for all Norway's hospitals in fall 2023 triggered high demand for nurses in this operation. The corresponding tender for hospital doctor staffing was complete in the second quarter, and Dedicare was reappointed to provide doctors for all healthcare regions. This deal is scheduled to come into effect in the fourth quarter. Our preschool operation, Acapedia, continued its high growth in the period. Meanwhile, competition from new Nordic players has become noticeable in Norway in recent quarters, mainly in doctor staffing. Accordingly, net sales decreased by 4.4 percent in the period to SEK 863.5 million (903.4), compared to a very strong comparative period. The Norwegian krone has appreciated, and adjusted for currency effects, net sales decreased by 1.8 percent, equivalent to a NOK 16.3 million reduction.

In Denmark, net sales for the period fell by 12.6 percent to SEK 176.6 million (201.9). Adjusted for currency effects, net sales fell by 11.9 percent or DKK 15.7 million. The downturn relates to the limits on nurses on long-term contract introduced in spring 2023.

In the UK, net sales for the period were SEK 41.5 million (34.5), a 20.3 percent increase. Adjusted for currency effects, net sales increased by GBP 0.5 million, or 19.2 percent. This was another eventful period for the UK operation, when demand for international staffing and recruitment services for doctors progressed positively. However, a general demand downturn for doctors was apparent on the UK market.

Financial information—the group's progress

Net sales

	Q3	Q3	Jan-Sep	Jan-Sep	Full-year
Net sales per operating segment, SEK million	2024	20231	2024	20231	20231
Sweden	75.9	109.2	257.4	369.7	482.7
Norway	314.2	338.4	863.5	903.4	1,176.3
Denmark	59.7	64.1	176.6	201.9	266.0
UK	15.5	14.0	41.5	34.5	48.8
Group-wide sales	16.1	13.8	43.8	41.5	54.5
Intersegmental sales	-20,5	-15.0	-52.1	-44.5	-57.6
Total net sales	460.9	524.5	1,330.7	1,506.5	1,970.7

¹Comparative period 2023 recalculated, see note 1 for more information.

EBITA

Third quarter 2024

The group's EBITA for the third quarter was SEK 11.2 million (40.6), a 72.5 percent reduction. The EBITA margin reduced year on year, to 2.4 percent (7.7) in the quarter. Non-recurring items in the third quarter were SEK 7.8 million, with SEK 1.6 million of this relating to restructuring costs from the savings programme and SEK 6.2 million from the change of CEO & MD. Adjusted for these non-recurring items, EBITA was SEK 19.0 million (40.6), down 53.2 percent. Dedicare's EBITA margin adjusted for non-recurring items was 4.1 percent (7.7). The lower earnings mainly relate to prevailing market conditions in Sweden, as well as price pressure and higher salaries in Norway.

Sweden's EBITA for the quarter was SEK -2.7 million (6.7), with an EBITA margin of -3.6 percent (6.1). The segment was impacted by SEK 0.9 million of restructuring costs for the savings programme initiated in May, and adjusted for them, EBITA was SEK -1.8 million (6.7) and the EBITA margin was -2.4 percent (6.1). The reduced earnings are mainly due to continued downsizing of contracted staff across most regions. The savings programme initiated is expected to take full effect in the fourth quarter.

Norway's EBITA for the quarter stood at SEK 19.2 million (33.4). The EBITA margin was 6.1 percent (9.9), against an exceptionally strong comparative quarter. Otherwise, the margin contraction is due to generally increased cost levels, particularly payroll expenses, as well as price pressure. Acapedia's EBITA margin remained stable in the quarter.

Denmark's EBITA for the quarter amounted to SEK 5.2 million (5.0) with an EBITA margin of 8.7 percent (7.8). This segment has adapted its costs to the reduced volumes that the limits on nurses on long-term contract imply.

For the UK, EBITA for the quarter was SEK 0.4 million (1.5) with an EBITA margin of 2.6 percent (10.7). The decrease is due to investments in organisational resources, and the UK doctor staffing market facing challenges in greater competition with the resulting price pressure.

Group-wide expenses for the third quarter amounted to SEK -10.9 million (-6.0) at EBITA level. The year-on-year increase is due to the non-recurring item in the quarter arising from the change of CEO & MD; this item was SEK 6.2 million. Group-wide expenses consist of costs such as shareholderrelated expenses, the amortisation of surplus values from acquisitions and intra-group transactions. Intangible amortisation and impairment losses mainly consist of amortisation of surplus values from acquisitions. Financial items were SEK -0.1 million (0.5). The change relates mainly to reduced interest expenses on the group's external loans, due to a lower loan liability, and negative unrealised exchange rate changes related to financial items. The rate change in the third quarter is due to fluctuations of the Danish krone and UK sterling.

Profit for the quarter was SEK 6.9 million (29.2).

The period January - September 2024

Consolidated EBITA for the period was SEK 49.8 million (120.2). The EBITA margin reduced compared to a strong period of the previous year and was 3.7 percent in the period (8.0). Adjusted for non-recurring items of SEK 10.7 million, EBITA was SEK 60.5 million (120.2), giving an EBITA margin of 4.5 percent (8.0). The lower earnings are mainly due to deterioration of the Swedish market, plus price pressure and increased salaries limiting profitability in Norway.

Sweden's EBITA for the period was SEK -4.1 million (22.7), with an EBITA margin of -1.6 percent (6.1). The segment was impacted by SEK 3.8 million of restructuring costs for the savings programme initiated in May 2024, and adjusted for them, EBITA was SEK -0.3 million (22.7) and the EBITA margin was -0.1 percent (6.1). The reduced earnings are mainly due to continued downsizing of contracted staff across most regions. Implementation of the cost savings programme was initiated in May and is expected to have its full effect in the fourth quarter.

Norway's EBITA for the period was SEK 57.7 million (93.0). The EBITA margin was 6.7 percent (10.3), with an exceptionally strong comparative quarter. Otherwise, the margin contraction is due to generally increased cost levels, particularly payroll expenses, as well as price pressure.

Denmark's EBITA for the period was SEK 12.8 million (14.1) with an EBITA margin of 7.2 percent (7.0). The segment has adapted costs to the reduced volumes resulting from contracting limits on nurses on long-term contract.

For the UK, EBITA For the period was SEK 1.7 million (2.9) with an EBITA margin of 4.1 percent (8.4). Dedicare has invested in more sales, business development and recruitment staff, which had a negative impact on EBITA in the period.

Group-wide expenses for the period were SEK

-18.3 million (-12.5) at EBITA level. The cost increase is due to a SEK 6.2 million non-recurring item relating to the change of CEO & MD. Group-wide expenses primarily consist of costs such as shareholder-related expenses, as well as the amortisation of surplus values from acquisitions and intragroup transactions. Intangible amortisation and impairment losses mainly consist of amortisation of surplus values from acquisitions. Financial items were SEK -1.0 million (-10.7), mostly consisting of unrealised exchange gains related to financial items. The change on the corresponding period of the previous year is due to positive progress of the Norwegian krone. The group's external interest expenses reduced by SEK 1.1 million year on year, and interest income increased by SEK 2.1 million. The higher interest income is due to a stronger cash position and an improved interest rate level between periods.

Profit for the period was SEK 32.7 million (76.7).

EBITA

	Q3	Q3	Jan-Sep	Jan-Sep	Full-year
EBITA per operating segment, SEK million	2024	20231	2024	20231	20231
Sweden	-2.7	6.7	-4.1	22.7	29.1
Norway	19.2	33.4	57.7	93.0	119.1
Denmark	5.2	5.0	12.8	14.1	15.2
UK	0.4	1.5	1.7	2.9	4.3
Group-wide expenses	-10.9	-6.0	-18.3	-12.5	-5.9
EBITA	11.2	40.6	49.8	120.2	161.8
Amortisation and impairments of intangible assets	-2.2	-3.9	-6.8	-11.1	-13.4
EBIT	9.0	36.7	43.0	109.1	148.4
Financial items	-0.1	0.5	-1.0	-10.7	-8.5
Profit after financial items	8.9	37.2	42.0	98.4	139.9

EBITA margin per operating segment	Q3 2024	Q3 20231	Jan-Sep 2024	Jan-Sep 20231	Full-year 20231
Sweden	-3.6%	6.1%	-1.6%	6.1%	6.0%
Norway	6.1%	9.9%	6.7%	10.3%	10.1%
Denmark	8.7%	7.8%	7.2%	7.0%	5.7%
UK	2.6%	10.7%	4.1%	8.4%	8.8%
EBITA margin	2.4%	7.7%	3.7%	8.0%	8.2%

¹Comparative period 2023 recalculated, see note 1 for more information

Progress of the group's net sales and EBITA margin, Q3 2020 – Q3 2024

Progress of the group's net sales and EBITA margin, Q3 2020 – 2024

Financial position and liquidity

Cash and cash equivalents

The group's cash and cash equivalents were SEK 130.1 million (145.0) as of 30 September.

Equity

Equity at the end of the period was SEK 281.2 million (285.4), or SEK 29.40 (29.85) per share on the reporting date. The decrease in equity is mainly due to the operation's EBIT.

Equity/assets ratio

The equity/assets ratio on 30 September was SEK 44.6 percent (39.3).

Cash flow

Total cash flow for the third quarter was SEK -1.2 million (32.2).

Cash flow from operating activities for the third quarter was SEK 24.6 million (38.3). The decrease is due to lower earnings because of a persistent challenging market in the third quarter 2024 compared to the previous year.

Cash flow from investing activities amounted to SEK -19.3 million (-0.5) for the third quarter. The increase relates to an SEK 18.4 million contingent consideration paid for the acquisition of Dedicare Life Science AB (formerly H&P Search & Interim AB).

Investments in intangible assets were marginally higher in the third quarter 2024 than the corresponding quarter of 2023. This investment mainly relates to development work on the Dedicare app and the development of a new housing management system.

Cash flow from financing activities in the third quarter was SEK -6.5 million (-5.6), explained by the usual rent indexation between years.

Total cash flow in the Jan-Sep period was SEK -54.0 million (- 6.4).

Cash flow from operating activities in the Jan-Sep period was SEK 47.4 million (89.6). The Swedish market sharply deteriorated in the period as an effect of contracting limits on healthcare staff and the Norwegian market being impacted by price pressure and higher salaries due to increased competition.

For the Jan-Sep period, cash flow from investing activities was SEK -21.2 million (-8.3), with the main explanation for the difference being two items—an SEK 18.4 million contingent consideration paid in the third quarter 2024, and the definitively adjusted purchase consideration for the acquisition of Optimal Medical Ltd. The amount was SEK 5.1 million, charged to the first quarter of 2023.

Cash flow from financing activities for the Jan-Sep period was SEK -80.2 million (-74.9), with the increase mainly being due to an increase in the dividend pay between the years. The dividend was SEK 62.2 million (57.4), a SEK 4.8 million increase.

Investments

Investments in tangible and intangible assets in the third quarter were SEK -0.9 million (-0.5). Investments in the third quarter relate mainly to IT systems. For the Jan-Sep period, the corresponding investments were SEK -2.8 million (-3.2), and apart from IT systems, also consist of office equipment.

Employees

The average number of employees expressed as full-time equivalents for the third quarter was 1,196 (1,296) and for the Jan-Sep period, 1,265 (1,347). These numbers include 147 (189) subcontracting consultants in the third quarter, and 163 (203) in the Jan-Sep period.

	Q3	Q3	Jan-Sep	Jan-Sep	Full-year
Full-time employees per operating segment	2024	2023	2024	2023	2023
Sweden	221	284	249	334	326
Norway	844	859	881	853	842
Denmark	8 3	105	8 7	116	114
UK	4 8	4 8	4 8	4 4	4 5
Total full-time employees1	1,196	1,296	1,265	1,374	1,327

¹ The number of employees includes subcontracting consultants: 147 (189) in the third quarter and 163 (203) in the Jan-Sep period.

Sustainable development

Dedicare's mission is to make a responsible and sustainable contribution to human health, development and quality of life. Our vision is to be one of Europe's leading recruitment and staffing providers in healthcare, life science and social work.

group where we put our energy and focus to achieve our goals in the short and long term—Attractive Employer, Attractive Client, Market & Service Development, Operational Efficiency, and Customer & Social Benefit.

We follow up on our strategic goals quarterly.

We have five strategic focus areas to clarify to the whole

	Ambition	Strategic goal	Performance Q3 2024
Attractive Employer	Dedicare will be the best employer in recruitment and staffing by hiring, developing and retaining the best people.	1. eNPS >50 (scale -100 to 100) 2. Commitment index >4 (scale 1-5)	1. 43 2. 4.3
Attractive Client	Dedicare will be the first choice client for candidates and consultants in healthcare, life science and social work, by offering the broadest selection of assignments and competitive terms of employment.	1. Consultant satisfaction >9 (scale 1-10)	9.2
Market & Service Dev.	Dedicare will work proactively on starting up and developing businesses in new customer segments, geographical regions and job categories that contribute to human health, development and quality of life.	1. One new geographical market and/or new service segment per year	-
Operational Efficiency	Dedicare will have the sector's most efficient business processes for sales, staffing and recruitment by working proactively on innovative, cost-efficient and scalable digital solutions.	1. EBITA margin >7 percent	2.4 percent
Customer & Social Benefit	Dedicare will be a specialist and market leader in attracting and offering skills in healthcare, life science and social work to public and private sector customers, which helps create equivalent and sustainable healthcare.	1. Customer satisfaction >9 (scale 1-10)	9.3

Our market

Dedicare manages recruitment and staffing operations in four main markets, Sweden, Norway, Denmark and the UK. In Finland, we operate recruitment for our staffing operations in the rest of the Nordics.

We offer our customers skills in four segments, and our skills portfolio may differ between markets.

Our offering

Dedicare offers specialist services in recruitment and staffing in the following segments and markets:

Market progress

Sweden is the Nordic region's largest healthcare staffing market. The main customers are regional health authorities, municipalities and private healthcare providers. Regional healthcare authorities are the largest purchasers of healthcare staffing services, and according to the Swedish Association of Local Authorities and Regions (SKR), purchasing was SEK 2.0 billion (2.4) for doctors, and SEK 1.2 billion (2.1) for nurses in the first half-year 2024.¹ The cost of contracted staff was only 3.4 percent (4.9) of total healthcare personnel expenses. SKR reports that purchasing reduced, by 16 percent for doctors and 42 percent for nurses, compared to the first half-year 2023. Dedicare estimates that the demand for social worker staffing reduced by just over 10 percent in the first half-year 2024. The main customers are municipal social services.

There are no official statistics for the market for life science available for Sweden or the other Nordics.

Norway is the Nordic region's second largest market for healthcare staffing. The main customers are hospitals, municipalities and private healthcare providers. Estimated healthcare staff procurement in 2023² is approx. NOK 4.2 billion, based on statistics from the Confederation of Norwegian Enterprise (NHO). Providers that are not members of NHO, and providers from Denmark and Sweden not included in NHO statistics, are additional. We estimate that these providers achieved sales of approximately NOK 1.8 billion in 2023. Dedicare estimates that around 30 percent of sales are for doctor staffing, some 50 percent for nurses and about 20 percent is divided between other job categories. The healthcare staffing market declined by 3 percent in the first quarter 2024 compared to the corresponding quarter of 2023.

¹ SKR: 'Staffing trends for agency health and social care staff.' ² NHO: 'Staffing sector statistics.'

In preschool staff contracting, the market grew by 7 percent in the second quarter 2024 compared to the corresponding quarter of 2023.

Dedicare's preschool operation Acapedia grew by 35.6 percent, and this operation is continuing to increase its market share. Dedicare's healthcare staffing contracted by 5.2 percent, while the healthcare staffing market contracted by 9.6 percent.

Dedicare maintained it strong status as Norway's largest healthcare staffing specialist in the second quarter 2024.

In Denmark, there are no official statistics for the healthcare staffing market available. Dedicare's opinion is that the market for contracting doctors is at the same level as at year-end 2023. The market for contracting nurses has been subject to a nationwide moratorium since spring 2023, which has impacted all five regions of the country.

The total UK market spend for contracted staff in healthcare was £5.1 billion in 2023, an increase from £3.3 billion in 2020, i.e. a 55.8 percent increase. Most healthcare staffing is via the National Health Service (NHS) England. The NHS represented £3.5 billion of total spend in 2023, up from £2.4 billion in 2020 (45.5 percent). Together, Scotland, Wales and Northern Ireland represented £1.1 billion, up from £0,6 billion in 2020 (74.1 percent), with all three nations making a fairly even growth contribution. The use of locums has increased at the expense of contracted staff, especially in the UK nursing market.

Other information

Net sales breakdown Public/Private Q3, by category.

Net sales breakdown Public/Private full-year, by category

Net sales breakdown Public/Private, January – September period, by category.

The share

On 30 September 2024, share capital was SEK 4,781,321, divided between 9,562,642 shares, of which 2,011,907 class A shares (carrying one vote) and 7,550,735 class B shares (carrying 1/5 vote) with a quotient value of SEK 0.50.

Share-based incentive programme

The three-year share warrant programme expired in July. No new incentive programmes have been created.

		Class A	Class B
Dedicare AB´s largest shareholders 30 Sep 2024	No. of shares	Shares	Shares	Holdings, %	Votes, %
Jenny Pizzignacco	1,266,595	1,070,525	196,070	13.25	31.51
Rödgladan AB	1,860,527	319,805	1,540,722	19.46	17.83
Björn Örås	621,577	621,577	-	6.50	17.65
Försäkringsbolaget Avanza pension	489,929	-	489,929	5.12	2.78
UBS AG LONDON BRANCH, W8IMY	255,423	-	255,423	2.67	1.45
KBC Bank NV, W8IMY	193,843	-	193,843	2.03	1.10
Caroline Örås	177,000	-	177,000	1.85	1.01
Pareto Securities AS	160,708	-	160,708	1.68	0.91
SACO BANK A/S - DANISH CLIENT ASSET	133,071	-	133,071	1.39	0.76
UBS SWITZERLAND AG, W8IMY	129,134	-	129,134	1.35	0.73

Risks and uncertainties

Significant risks and uncertainties are reviewed below. For a more detailed description, please refer to pages 29- 33 of the Annual Report for 2023.

Regulated business/political risk

On those markets where Dedicare currently operates— Sweden Norway, Denmark and the UK—healthcare is largely publicly funded. Public funding means that downsizing, cost-cutting, rationalisations and similar measures at central, regional or local government level may have a significant negative impact on Dedicare's operations. Dedicare's operations may also be heavily affected by the political control of healthcare. The question of procuring staffing services in health and social care is, and has been, the subject of debate at times. In Sweden, Norway and Denmark, political actions are being conducted to reduce dependency on contracted healthcare staff.

Competition

Dedicare is active on a competitive market with substantial price pressure. The investments necessary to start up a staffing operation in healthcare, life science and social work are relatively low compared to many other sectors. Increased competition may have a negative impact on the group's sales, profitability and growth.

Contract dependency

Dedicare has a small number of customers that represent a high share of the company's total sales. Usually, staffing services are procured through a collective tendering process. These public tenders are strictly legislated,

and generally, a number of priority providers are selected on a roster, who then enter framework agreements.

These agreements usually have two-year terms, with maximum extensions of two years. On each occasion Dedicare was unable to win tenders with large individual customers, or moves down their roster, this could have a material temporary negative impact on the group's sales and profitability.

Dedicare works continuously on ensuring that the group has the skills and staffing necessary, so its tenders consistently maintain high quality.

The largest customer in Sweden, Region Stockholm, represented some 5.9 percent (7.3) of Dedicare Sweden's net sales in the third quarter 2024. In Norway, the largest customer, the Helse Sör Öst regional health authority, generated approximately 9.8 percent (9.5) of Dedicare Norway's total net sales in the third quarter 2024. The North Jutland regional health authority remained Dedicare Denmark's largest customer in the third quarter 2024, representing approximately 28.2 percent (31.8) of net sales. The largest customer in the UK for the third quarter 2024 was King Edward's Hospital, which represented approximately 66.8 percent (58.0) of net sales.

Skills shortages in consulting business

A shortage of resources is a potential obstacle to continued growth. Dedicare's core business consists of recruitment and staffing in jobs subject to shortage, which means that attracting as many potential candidates as possible regardless of gender, gender-fluid identity or expression, ethnic origin, sexual orientation, religion or other faith, disability or age, is mission-critical. Dedicare needs to keep staff turnover at a low level, so consultants remain with the company as long as possible. This is achieved by continuously developing and improving our offering to consultants, where Dedicare's goal is to be the market's best client in staffing healthcare, life, science, and social work.

IT security

Growing digitalisation means that Dedicare needs to manage risks associated with the information society. Its business is dependent on the availability of suitable digital systems, a highly functional IT environment and infrastructure. The capability to manage cyberthreats, business continuity and data security risks are additional. Delays in the rollout of key systems, unplanned outages, cybersecurity weaknesses, data infringement and losses are significant risks that need to be managed. The group has centralised IT management, and continuously reduces the risk of various types of attack by taking the necessary action, as well as proactively managing and investing in IT security.

Environmental and climate impact

Increased turnover means more travel for our consultants, and a greater environmental impact because many of our consultants work in different locations to those they live in. Dedicare's environmental policy encourages travel by train and other public transport where possible.

Transactions with related parties

No material transactions with related parties occurred in the third quarter 2024.

Financial goals and performance

Growth

Over time, Dedicare's objective is to grow by at least 10 percent yearly. Its growth goal includes further acquisitions. For the third quarter 2024, growth was -12.1 percent.

EBITA margin

Dedicare's target is for its EBITA margin to exceed 7.0 percent over time. For the third quarter 2024, its EBITA margin was 2.4 percent.

Equity/assets ratio

Dedicare should have a secure capital base and operations should mainly be financed with equity. The nature of operations implies a limited need for capital. Against this background, Dedicare's opinion is that its equity/assets ratio should be at least 30.0 percent. As of 30 September 2024, the equity/assets ratio was 44.6 percent.

Dividend policy

Dedicare's target is for its dividend to be at least 50.0 percent of net profit over a business cycle. For the financial year 2023, the proposed dividend is 56.3 percent (56.6) of net profit.

About Dedicare

Dedicare is the Nordic region's largest recruitment and staffing company in healthcare, life science and social work.

The company is listed on Nasdaq Stockholm, and has operations in Sweden, Norway, Denmark and the UK.

Dedicare has three offices in Sweden, two in Norway, two in Denmark, and two in the UK.

In Sweden, Dedicare is a member of the Employers' Organisation for the Swedish Service Sector (Almega Kompetensföretagen) and operates through collective bargaining agreements. In Norway, Dedicare is a member of the Confederation of Norwegian Enterprise (Næringslivets Hovedorganisasjon). In Denmark, Dedicare is a member of the Danish Chamber of Commerce (Dansk Erhverv). In the UK, Dedicare is a member of the REC (Recruitment & Employment Confederation).

Dedicare holds ISO 9001:2015 quality management certification, ISO 14001:2015 environmental management systems certification, and in Norway ISO 45001:2018 occupational health & safety certification.

Business concept

Dedicare will be the best at attracting and delivering skills in healthcare, life science and social work.

Business model

Based on social needs for healthcare and social work skills, we have formulated strategies and objectives to satisfy social needs and realise our vision.

By selling to the public and private sector, we secure assignments in recruitment and staffing to satisfy customer needs for resources in health and social care. Society's needs are changing continuously, and we constantly adapt our business to match these changes.

Financial statements, group

Condensed Consolidated Statement of Comprehensive Income

SEK million	note	Q3 2024	Q3 2023	Jan-Sep 2024	Jan-Sep 2023	Full-year 2023
Operating revenue
Net sales	1	460.9	524.5	1,330.7	1,506.5	1,970.7
Work performed by the company for its own use and capitalised		0.9	0.3	2.6	1.3	2.1
Other operating income1		3.6	0.5	5.6	9.8	21.3
Total operating revenue		465.4	525.3	1,338.9	1,517.6	1,994.1
Operating expenses
Purchased services		-69.8	-100.0	-221.4	-306.0	-396.8
Personnel expenses		-327.8	-333.8	-909.3	-930.7	-1,224.5
Other operating expenses		-51.3	-47.8	-147.0	-152.2	-200.0
Depreciation and impairments of tangible and intangible assets	2	-7.5	-7.0	-18.2	-19.6	-24.4
Operating profit2		9.0	36.7	43.0	109.1	148.4
Financial items		-0.1	0.5	-1.0	-10.7	-8.5
Profit after financial items		8.9	37.2	42.0	98.4	139.9
Income taxes		-2.0	-8.0	-9.3	-21.7	-29.5
Profit for the period		6.9	29.2	32.7	76.7	110.4
Other comprehensive income
Items that may be reclassified to profit
Exchange differences		-4.6	-3.3	0.8	3.6	-5.6
Total comprehensive income for the period		2.3	25.9	33.5	80.3	104.8
Of which attributable to:
Parent Company´s shareholders		2.3	25.9	33.5	80.3	104.8
Basic earnings per share (SEK)		0.72	3.05	3.42	8.02	11.55
Diluted earnings per share (SEK)		0.71	3.02	3.39	7.94	11.44

¹ Other operating income for the full year 2023 includes a revalued contingent consideration which had a SEK 10.9 million positive effect.

² EBIT for the period Jan-Sep 2023 includes acquisition costs of SEK 0.2 million.

Financial statements, group

Condensed Consolidated Statement of Financial Position

SEK million Note	30 Sep 2024	30 Sep 2023	Full-year 2023
Non-current assets
Intangible assets 2	163.9	170.1	165.2
Right-of-use assets	16.7	24.7	21.5
Other fixed assets	1.9	2.7	2.6
Deferred tax assets	6.7	10.9	0.4
Deposits paid	5.2	4.9	5.0
Total non-current assets	194.4	213.3	194.7
Current assets
Current receivables	306.4	368.7	345.5
Cash and cash equivalents	130.1	145.0	187.1
Total current assets	436.5	513.7	532.6
TOTAL ASSETS	630.9	727.0	727.3
Equity	281.2	285.4	309.9
Non-current liabilities
Provisions	3.1	4.8	3.1
Other non-current liabilities 3,4	4.8	64.3	30.6
Deferred tax liabilities	11.1	16.2	12.0
Total non-current liabilities	19.0	85.3	45.7
Current liabilities
Current tax liabilities	17.3	37.0	30.8
Other current liabilities 3,4	313.4	319.3	340.9
Total current liabilities	330.7	356.3	371.7
TOTAL EQUITY AND LIABILITIES	630.9	727.0	727.3

Financial statements, group

Condensed Consolidated Statement of Changes in Equity

SEK million	30 Sep 2024	30 Sep 2023	Full-year 2023
Equity at beginning of period	309.9	262.6	262.6
Profit for the period	32.7	76.7	110.4
Other comprehensive income
Items that may be reclassified to profit or loss
Exchange differences	0.8	3.6	-5.6
Transactions with shareholders
Transaction fees	-	-0.1	-0.1
Dividend	-62.2	-57.4	-57.4
Equity at end of period	281.2	285.4	309.9

Condensed Consolidated Statement of Cash Flows

SEK million	Q3 2024	Q3 2023	Jan-Sep 2024	Jan-Sep 2023	Full-year 2023
Operating activities
Cash flow from operating activities before changes in working capital	13.3	43.3	36.5	99.7	116.4
Changes in working capital	11.3	-5.0	10.9	-10.1	29.0
Cash flow from operating activities	24.6	38.3	47.4	89.6	145.4
Investing activities
Acquisition of subsidiaries	-	-	-	-5.1	-5.1
Acquisition of tangible and intangible fixed assets	-0.9	-0.5	-2.8	-3.2	-4.5
Sales value of tangible and intangible fixed assets	-	-	0.0	-	-
Paid contingent considerations	-18.4	-	-18.4	-	-
Cash flow from investing activies	-19.3	-0.5	-21.2	-8.3	-9.6
Financing activities
Transaction fees	-	-	-	-0.1	-0.1
Repayment of loans	-3.4	-3.5	-10.3	-10.3	-13.7
Repayment of of lease liability	-3.1	-2.1	-7.7	-7.0	-10.4
Cash deposits	-0.0	-	-0.0	-0.1	-0.2
Dividend paid	-	-	-62.2	-57.4	-57.4
Cash flow from financing activities	-6.5	-5.6	-80.2	-74.9	-81.8
Cash flow for the period	-1.2	32.2	-54.0	6.4	54.0
Cash and cash equivalents at beginning of period	136.2	112.1	187.1	142.8	142.8
Exchange differences in cash and cash eqivalents	-5.0	0.7	-3.1	-4.2	-9.7
Cash and cash equivalents at end of period	130.0	145.0	130.0	145.0	187.1

Notes

Accounting policies

Dedicare prepares its consolidated accounts in accordance with International Financial Reporting Standards (IFRS).

This Interim Report for the group has been prepared in accordance with IAS 34 Interim Financial Reporting, and for the parent company, in accordance with the Swedish Annual Accounts Act and the Swedish Financial Reporting Board's recommendation RFR 2 Accounting for Legal Entities.

The accounting policies and computation methods applied for the group and parent company are consistent

Note 1. Segment information

A division between segments has been determined, based on how Dedicare's Group Management monitors and manages operations to evaluate performance and allocate resources.

Effective 2024, Group Management monitors segment EBITA instead of EBIT as previously. For more information, see the press release at dedicaregroup.com.

Group Management monitors segment EBITA both including and excluding items affecting comparability.

The identified operating segments are Sweden, Norway, Denmark, UK (formerly New Markets) and Group-wide.

Dedicare has altered the allocation of costs in its segment structure. In the previous segment reporting, shareholderrelated expenses were allocated between all segments of the group, but from the first quarter of 2024, all these expenses have been reported in the Group-wide segment.

Segment reporting for 2023 has been recalculated and comparative figures updated in the segment-related tables presented on pages 4–7 of this Report to give a fair comparison between years. A summary for the full year is in this note.

The Sweden, Norway, Denmark and UK segments consist of business operations in recruitment and staffing in each country, as well as allocated central expenses for support functions such as.

with those accounting policies and computation methods applied when preparing the most recent annual accounts.

No other new or revised IFRS or interpretation statements from IFRIC that come into effect in 2024 or later had or will have any material impact on Dedicare's financial statements.

Group Management, Accounting, & Finance, Legal, Corporate Communication, Business Development, HR and IT management.

Allocation is pursuant to an allocation key based on the segments' sales or average number of employees. This also includes the segment's transition to IFRS 16.

The Group-wide segment consists of group-wide items such as shareholder-related expenses, amortisation of surplus values from acquisitions, amortisation related to business transfers, intra-group transactions, eliminations and the segment's transition to IFRS 16.

The accounting policies applied to segment reporting are consistent with those the group applies.

For more information on Dedicare's operating segments, please refer to pages 4-7 of this Interim Report: net sales by operating segment on p. 4-5 and EBITA by operating segment on p. 6-7.

Notes Cont. Note 1. Segment information

	Jan-Mar 2023		Jan-Jun 2023		Jan-Sep 2023		Jan-Dec 2023
	New Segment	Previous Segment	New Segment	Previous Segment	New Segment	Previous Segment	New Segment	Previous Segment
Net sales, SEK million	reporting	reporting	reporting	reporting	reporting	reporting	reporting	reporting
Sweden	138.7	138.6	260.5	260.4	369.7	369.0	482.7	482.3
Norway	284.6	284.8	565.0	563.8	903.4	902.1	1,176.3	1,175.1
Denmark	70.3	69.9	137.8	137.4	201.9	200.9	266.0	264.5
UK	9.9	9.9	20.5	20.5	34.5	34.5	48.8	48.8
Group-wide sales	14.6	-	27.7	-	41.5	-	54.5	-
Intersegmental sales	-14.9	-	-29.4	-	-44.5	-	-57.6	-
Total net sales	503.2	503.2	982.1	982.1	1506.5	1506.5	1,970.7	1,970.7
EBIT, MSEK
Sweden	10.0	8.7	16.0	13.3	22.7	17.4	29.1	21.1
Norway	29.6	26.1	59.4	54.5	92.9	84.8	119.1	109.5
Denmark	5.1	4.6	9.2	8.7	14.1	13.0	15.2	13.2
UK	0.5	0.6	1.4	1.7	2.9	3.3	4.3	4.5
Group-wide expenses	-7.2	-2.0	-13.6	-5.8	-23.5	-9.4	-19.3	0.1
EBIT	38.0	38.0	72.4	72.4	109.1	109.1	148.4	148.4
EBIT margin, %
Sweden	7.2%	6.3%	6.1%	5.1%	6.1%	4.7%	6.0%	4.4%
Norway	10.4%	9.2%	10.5%	9.7%	10.3%	9.4%	10.1%	9.3%
Denmark	7.2%	6.6%	6.7%	6.3%	7.0%	6.4%	5.7%	5.0%
UK	5.5%	6.1%	6.7%	8.3%	8.5%	9.5%	8.8%	9.2%
EBIT margin	7.6%	7.6%	7.4%	7.4%	7.2%	7.2%	7.5%	7.5%

Note 2. Intangible assets

					Other
		Customer			intangible
30 Sep 2024, SEK million	Goodwill	agreements	Database	Trademark	fixed assets	Total
Opening cost	116.9	54.4	15.4	1.6	13.0	201.3
Cost	-	-	-	-	2.6	2.6
Exchange differences	2.0	1.2	0.3	0.1	-	3.6
Closing cost	118.9	55.6	15.7	1.7	15.6	207.5
Opening accumulated amortisation and impairments	-	-23.8	-5.7	-1.6	-5.0	-36.1
Amortisation in the period	-	-2.9	-2.1	-	-1.8	-6.8
Exchange differences	-	-0.5	-0.1	-0.1	-	-0.7
Closing accumulated amortisation and impairments	-	-27.2	-7.9	-1.7	-6.8	-43.6
Closing carrying amount	118.9	28.4	7.8	-	8.8	163.9

		Customer			Other intangible
30 Sep 2023, SEK million	Goodwill	agreements	Database	Trademark	fixed assets	Total
Opening cost	112.3	54.3	15.4	1.6	10.5	194.1
Aquisitions	5.1	-	-	-	-	5.1
Cost	-	-	-	-	1.3	1.3
Exchange differences	2.6	1.3	0.3	0.1	-	4.3
Closing cost	120.0	55.6	15.7	1.7	11.8	204.8
Opening accumulated amortisation and impairments	-	-16.3	-3.0	-0.4	-3.3	-23.0
Amortisation in the period	-	-6.7	-2.1	-1.2	-1.0	-11.0
Impairment in the period	-	-	-	-0.1	-	-0.1
Exchange differences	-	-0.6	-	-	-	-0.6
Closing accumulated amortisation and impairments	-	-23.6	-5.1	-1.7	-4.3	-34.7
Closing carrying amount	120.0	32.0	10.6	-	7.5	170.1

Notes

Cont. Note 2. Intangible assets

					Other
		Customer			intangible
Full-year 2023, SEK million	Goodwill	agreements	Database	Trademark	fixed assets	Total
Opening cost	112.3	54.3	15.4	1.6	10.5	194.1
Aquisitions	5.1	-	-	-	-	5.1
Cost	-	-	-	-	2.5	2.5
Exchange differences	-0.5	0.1	-	-	-	-0.4
Closing purchase value	116.9	54.4	15.4	1.6	13.0	201.3
Opening accumulated amortisation and impairments	-	-16.3	-3.0	-0.4	-3.3	-23.0
Amortisation in the period	-	-7.8	-2.7	-1.1	-1.7	-13.3
Impairment in the period	-	-	-	-0.1	-	-0.1
Exchange differences	-	0.3	-	-	-	0.3
Closing accumulated amortisation and impairments	-	-23.8	-5.7	-1.6	-5.0	-36.1
Closing carrying amount	116.9	30.6	9.7	-	8.0	165.2

Note 3. Financial liabilities

	30 Sep	30 Sep	Full-year
SEK million	2024	2023	2023
Non-current
Liabilities to institutions	-	19.3	15.2
Contingent consideration liability	-	32.2	7.3
Lease liabilities	4.8	12.8	8.1
Total	4.8	64.3	30.6
Current
Liabilities to institutions	18.9	13.9	13.4
Contingent consideration liability	23.7	17.5	31.9
Lease liabilities	11.2	11.7	12.0
Total	53.8	43.1	57.3
Total financial liabilites	58.6	107.4	87.9

Note 4. Financial liabilities measured at fair value

	30 Sep	30 Sep	Full-year
Financial liabilities measured at fair value, SEK million	2024	2023	2023
Contingent considerations
Dedicare Life Science AB (formely H&P Search & Interim AB)	7.6	35.3	25.0
Optimal Medical Ltd.	16.1	14.4	14.2
Total	23.7	49.7	39.2

The first contingent consideration for Dedicare Life Science AB (formerly H&P Search & Interim AB), based on the company's earnings performance for two years from the acquisition date (1 April 2022), was due in July. The amount paid was SEK 18.4 million.

The second contingent consideration is due in July 2025 and based on the company's earnings performance over three years (1 April 2022 – 30 March 2025). This liability was revalued and adjusted downwards by SEK 10.9 million in the fourth quarter 2023. The total liability of SEK 7.6 million is classified as a current liability in the Consolidated Balance Sheet.

The contingent consideration for Optimal Medical Ltd., due for payment in November 2024, is based on the company's earnings performance two years from the acquisition date (1 October 2022). All this liability is classified as a current liability in the Consolidated Balance Sheet.

Performance measures

Quarterly summary

	Q3 2023	Q4 2023	Q1 2024	Q2 2024	Q3 2024
Net sales, SEK million	524.5	464.1	430.2	439.6	460.9
EBITDA, SEK million	43.7	44.1	20.5	24.2	16.5
EBITDA margin, %	8.3%	9.5%	4.8%	5.5%	3.6%
EBITA, SEK million	40.6	41.6	17.4	21.2	11.2
EBITA margin, %	7.7%	9.0%	4.0%	4.8%	2.4%
EBIT, SEK million	36.7	39.3	15.1	18.9	9.0
EBIT-margin, %	7.0%	8.5%	3.5%	4.3%	2.0%
Profit after financial items, SEK million	37.2	41.5	13.5	19.6	8.9
Profit margin, %	7.1%	8.7%	3.1%	4.4%	2.0%
Net profit for the period, SEK million	29.2	33.7	10.5	15.3	6.9
Net Debt, SEK million	-37.7	-99.1	-116.6	-55.6	-71.4
Equity/assets ratio, %	39.3%	42.6%	44.9%	42.1%	44.6%
Return on equity, %	10.7%	11.3%	3.3%	5.1%	2.5%
Cash flow from operating activities, SEK million	38.3	55.8	21.6	1.2	24.6
Number of employees, average1	1,296	1,263	1,275	1,325	1,196
Revenue per employee, SEK thousand	405	367	337	332	385
Share ratio
Share price at end of period, SEK	88.7	114.2	100.8	58.9	67.5
Basic earnings per share, SEK	3.05	3.53	1.09	1.60	0.72
Diluted earnings per share, SEK	3.02	3.50	1.08	1.59	0.71
Equity per share, SEK	29.85	32.41	34.10	29.13	29.40
Cash flow from currens operations per share, SEK	4.00	5.84	2.26	0.12	2.57
Number of shares before dilution	9,562,642	9,562,642	9,562,642	9,562,642	9,562,642
Number of shares after dilution	9,652,642	9,652,642	9,652,642	9,652,642	9,562,642
Number of outstanding shares	9,562,642	9,562,642	9,562,642	9,562,642	9,562,642

¹ The average number of employees includes subcontracting consultants, see page 8 for more information.

Reconciliation of alternative performance measures

Dedicare uses alternative performance measures (APMs). Dedicare's APMs are computed on financial statements prepared pursuant to applicable regulations governing financial reporting. The performance measures reviewed below are not consistent with IFRS, but intended to assist stakeholders in analysing Dedicare's earnings and financial structure.

	Q3	Q3	Q3	Jan-Sep	Jan-Sep	Jan-Sep	Full-year
Return on equity, SEK million	2024	2023		2024	2023		2023
Profit for the period	6.9	29.2	-22.3	32.7	76.7	-44,0	110.4
Average equity	279.9	272.5	7.4	298.9	273.1	25.8	280.5
Return on equity	2.5%	10.7%	-8.2%	10.9%	28.1%	-17.2%	39.4%
	Q3	Q3	Q3	Jan-Sep	Jan-Sep	Jan-Sep	Full-year
Return on total capital, SEK million	2024	2023		2024	2023		2023
Profit after financial items	8.8	37.2	-28.4	42.0	98.4	-56.4	139.9
Average total capital	646.5	716.2	-69.7	686.8	730.7	-43.9	730.4
Return on total capital	1.4%	5.2%	-3.8%	6.1%	13.5%	-7.4%	19.2%
	Q3	Q3	Q3	Jan-Sep	Jan-Sep	Jan-Sep	Full-year
EBITDA margin, SEK million	2024	2023		2024	2023		2023
EBITDA	16.5	43.7	-27.2	61.2	128.7	-67.5	172.8
Net Sales	460.9	524.5	-63.6	1,330.7	1,506.5	-175.8	1,970.7
EBITA margin	3.6%	8.3%	-4.7%	4.6%	8.5%	-3.9%	8.8%

Definitions on p. 24

Financial statements, parent company

Parent company

Support functions such as Group Management, Finance, Corporate Communication, HR and IT Management are conducted in the parent company.

Condensed Parent Company Income Statement

SEK million note	Q3 2024	Q3 2023	Jan-Sep 2024	Jan-Sep 2023	Full-year 2023
Operating revenue
Net sales	15.8	5.0	43.8	15.6	21.9
Work performed by the company for its own use and capitalised	0.9	0.3	2.6	1.3	2.1
Other operating revenue	0.1	0.1	0.7	3.0	3.1
Total operating revenue	16.8	5.4	47.1	19.9	27.1
Operating expenses
Personnel expenses	-14.6	-9.8	-28.8	-24.8	-31.1
Other external expenses	-13.2	-10.5	-36.8	-33.6	-45.6
Depreciation of tangible and intangible assets	-0.6	-0.4	-1.9	-1.2	-1.9
Operating profit	-11.6	-15.3	-20.4	-39.7	-51.5
Profit from financial items
Profit from participations in group companies	-	-	-	-	80.2
Other financial items	-1.1	-0.2	-5.4	-11.6	-10.5
Profit after financial items	-12.7	-15.5	-25.8	-51.2	18.2
Appropriations	-	-	-	-	56.5
Tax on profit for the period	2.8	3.2	5.4	10.5	-
Profit for the period	-9.9	-12.3	-20.4	-40.7	74.7

Financial statements, parent company

Condensed Parent Company Balance Sheet

SEK million Note	30 Sep 2024	30 Sep 2023	Full-year 2023
Non-current assets
Other fixed assets	9.0	7.8	8.3
Shares in subsidiaries	196.2	207.1	196.2
Deferred tax assets	5.3	10.5	-
Other financial assets	4.3	4.3	4.3
Total non-current assets	214.8	229.7	208.8
Current assets
Other current receivables	19.0	33.6	50.8
Cash and bank	94.8	102.1	152.4
Total current assets	113.8	135.7	203.2
TOTAL ASSETS	328.6	365.4	412.0
Equity	135.5	102.8	218.1
Untaxed reserves	13.0	27.3	13.0
Long-term liabilities
Other long-term liabilities	-	51.5	22.5
Total long-term liabilities	-	51.5	22.5
Current liabilities
Other current liabilities	180.1	183.8	158.4
Total current liabilities	180.1	183.8	158.4
TOTAL EQUITY AND LIABILITIES	328.6	365.4	412.0

Condensed Parent Company Statement of Changes in Equity

SEK million	30 Sep 2024	30 Sep 2023	Full-year 2023
Equity at beginning of period	218.1	200.9	200.9
Profit for the period	-20.4	-40.7	74.7
Transactions with shareholders
Transaction fees	-	-0.1	-0.1
Dividend	-62.2	-57.4	-57.4
Equity at end of period	135.5	102.7	218.1

Definitioner

Average equity

Average equity at quarter-end.

Average total capital

Average total capital at quarter-end.

Average number of employees (FTE)

Total hours worked in the period divided by the scheduled working-hours of a full-time employee. The number of employees includes subcontracting consultants.

Basic earnings per share

Profit for the period attributable to holders of ordinary shares of the parent company, divided by the weighted average number of outstanding ordinary shares in the period.

Cash flow from operating activities per share

Cash flow from operating activities divided by the average number of outstanding shares before dilution. Indicates the cash flow generated by operating activities.

Diluted earnings per share

Profit for the period after dilution attributable to holders of ordinary shares of the parent company, divided by the weighted average number of potential ordinary shares.

EBIT

(Earnings before interest and taxes) EBIT before financial income and expenses and tax.

EBIT margin EBIT divided by net sales.

EBITA

(Earnings before interest, taxes and amortisation) EBIT before financial income and expenses, tax, amortisation and impairment of intangible assets.

EBITA margin

EBITA divided by net sales.

EBITDA

(Earnings before interest, taxes, depreciation and amortisation) Operating profit before financial revenue and expenses, tax, depreciation and amortisation of tangible and intangible assets, as well as impairment.

EBITDA margin

EBITDA divided by net sales.

Equity/assets ratio

Equity divided by total capital.

Equity per share

Share of equity attributable to equity holders of the parent divided by number of outstanding shares at the end of the period. Illustrates shareholders' participation in the company's total equity per share.

Net debt/net cash

Interest-bearing liabilities less interest-bearing assets and cash and cash equivalents.

Non-recurring items

Financial effects related to major acquisitions and divestments or other major structural changes, and material non-recurring items relevant to understanding earnings for comparison between periods.

Profit after financial items

EBIT including financial revenue less financial expenses.

Profit margin

Profit after financial items divided by operating revenue.

Return on equity

Profit for the period divided by average equity.

Return on total capital

Profit after financial items divided by average total capital.

Revenue per employee

Net sales divided by the average number of employees.

Total capital

The total of the company's assets, i.e. total assets.

Calendar for financial information

February 2025 Year-end Report 1 January – 31 December 2024 March 2025 Annual & Sustainability Report 2024 April 2025 Interim Report 1 January – 31 March 2025 July 2025 Interim Report 1 January – 30 June 2025 October 2025 Interim Report 1 January – 30 September 2025 February 2026 Year-end Report 1 January – 31 December 2025

Stockholm, Sweden, 24 October 2024

Bård Kristiansen CEO & Managing Director

This Report has been signed by the CEO & Managing Director after authorisation by the Board of Directors.

Review

This Interim Report has not been subject to summary review by the company's auditors.

For more information, please contact:

Bård Kristiansen CEO & Managing Director +47 97 08 88 83

Dedicare AB (publ) Corp. ID no.: 556516-1501 Ringvägen 100, entrance E, 10th floor 118 60 Stockholm Sweden +46 (0)8 555 65600

Anette Sandsjö CFO +46 (0)73 343 4468

This information is mandatory for Dedicare AB (publ) to publish pursuant to the EU Market Abuse Regulation (MAR) and the Swedish Securities Markets Act. This information was submitted for publication through the agency of the above contact at 8 a.m. CET on 24 October 2024.