Elos Medtech — Interim / Quarterly Report 2021

Apr 28, 2021

Q1 ²⁰²¹ INTERIM REPORT

SEK 171.2 million The Group's net sales increased to SEK 171.2 (158.9) million in the first quarter of 2021

SEK 25.0 million The Group's operating profit increased to SEK 25.0 (11.9 ) million in the first quarter of 2021

Q1 ²⁰²¹ INTERIM REPORT

A POSITIVE START TO THE YEAR

January - March 2021

• Net sales for the first quarter amounted to SEK 171.2 (158.9) million, an increase of 7.7 percent compared to the same quarter last year. Net sales in local currencies increased by 14.2 percent.
• Operating profit increased to SEK 25.0 (11.9) million, corresponding to an operating margin of 14.6 (7.5) percent.
• Profit after net financial items increased to SEK 27.1 (6.6) million. Exchange rate differences and revaluation of interest rate swaps had a positive impact on net financial items of SEK 2.8 (2.2) million and SEK 2.1 (-4.3) million, respectively, resulting in a net financial gain of SEK 2.1 (-5.3) million.
• Profit after tax amounted to SEK 20.0 (5.4) million.
• Earnings per share amounted to SEK 2.48 (0.67).
• Cash flow from operating activities was SEK 24.3 (9.0) million, amounting to SEK -11.5 (2.8) million after investments.

Key performance indicators	Jan- March 2021	Jan- March 2020	April March 2020/21	Jan-Dec 2020
Net sales, SEK million	171.2	158.9	592.3	580.0
Growth, %	7.7	-16.3	-10.0	-15.9
Profit before depreciation and amortization (EBITDA), SEK million	38.3	28.0	133.9	123.6
Profit before depreciation and amortization (EBITDA), %	22.4	17.6	22.6	21.3
Operating profit (EBIT), SEK million	25.0	11.9	76.7	63.6
Operating profit (EBIT), %	14.6	7.5	12.9	11.0
Profit after financial items, SEK million	27.1	6.6	63.7	43.2
Undiluted and diluted earnings per share, SEK	2.48	0.67	6.28	4.47
Cash flow from operating activities, SEK million	24.3	9.0	141.1	125.5
Net debt, SEK million	267.7	346.0		248.4

In local currencies, growth was 14.2%.

CEO JAN WAHLSTRÖM COMMENTS ON Q1

What a great start to the new year! We are once again a fully functioning business despite the ongoing pandemic. Net sales grew in the quarter and were up by 7.7 percent. In local currencies the growth was up by 14 percent.

In addition, earnings were also strong with an operating margin of 14.6 percent, which is a year-on-year increase of 110 percent. All business areas improved their profitability, partly thanks to a well balanced product mix and partly thanks to successful margin improvement measures.

The strongest growth was in Orthopedics, which grew 25 percent in the quarter. As predicted, our new robotic-assisted surgery businesses have given us a good foundation for 2021. Robotic surgery is a fast growing area and is on the agenda of all major orthopedic companies. This, and our results, show clearly that we have made the right strategic choice.

In Dental, net sales increased by nearly SEK 3 million on the previous quarter. The comparative period in 2020 was the best quarter in the company's history and this has an impact on year-on-year growth, which came in at -3 percent. Sales of our proprietary products are positive. Net sales of proprietary products grew 5.4 percent in the first quarter, despite a strong comparative period in 2020. Proprietary products still account for 14 percent of the Group's total net sales, which is above our long-term strategic goal for the second quarter in a row. Sales are mainly driven by our digital product range, Elos Accurate®.

Life Science reported growth of 6 percent. Here our focus has been on our new diagnostics business that we gained last fall and the new products that will go into production this year.

To ensure that we are able to grow with our partners, we are investing in our Skara site and in new machinery in Memphis. The expansion of our Skara site is proceeding at a good pace and we expect to be able to keep the timetable and take the new premises into use in the summer. We realize, however, that the relocation of machinery will be a complex operation that may result in brief shutdowns of production. In Memphis, our first new machines are being installed and validated, and our focus in the near future will therefore be on increasing staff levels.

A challenge that we face now in April is that it still uncertain what course the pandemic will take. Vaccine availability and vaccination rates will probably be crucial in stopping the pandemic, but until then the situation remains hard to predict. We attach great importance to ensuring access to raw materials to avoid disruptions in production, as the pandemic has created certain logistical challenges in the global market.

We got a positive start in 2021 – an important year dominated by two major investments that will be launched in both Skara and Memphis. It is challenging from several perspectives, but I look forward to the future with confidence.

THIS IS ELOS MEDTECH

General information about the business

Elos Medtech specializes in medical technology and has extensive expertise in development and design, along with contract manufacturing of medical devices. Customers are primarily global medical technology companies. Operations are conducted at facilities in Sweden, Denmark, China and the US with Groupwide functions for strategic marketing and IT support, production and quality management, risk management, financing and financial control in Gothenburg. The Group runs operations in the following three business areas: Dental, Orthopedics and Life Science.

Vision

To transform medical technology and advance quality of life worldwide.

Mission

In partnership with our customers, we provide sustainable and innovative products and supply solutions for the global medical device market. Building profitable, long-term partnerships and striving for excellence in everything we do, our goal is to help people to live rich, active and fulfilling lives.

Targets

Elos Medtech's long-term financial targets are: an average annual growth rate of more than 10 percent, average operating margin (EBIT) of over 13 percent and for proprietary products to account for at least 13 percent.

Value-creating business model

Elos Medtech's business model is based on extensive experience and expertise that it has acquired in the development and contract manufacturing of medical devices and components. Customers are offered quality, expertise and innovation in a partner-based overall solution – Complete PerformanceTM. The cornerstones of Elos Medtech's value creation are higher efficiency, improved profitability and high-quality products in partnership with its customers.

Strategy

Elos Medtech's strategy is based on a sharper focus on selected market segments and in both metals and polymer. The strategy also includes a higher level of specialization and expertise in design, development, manufacturing and logistics with the highest quality assurance. With a stronger offering, it will be easier to achieve the strategic targets of more distinct positioning and continued growth.

Sustainable focus

Elos Medtech has a sustainable focus and responsibility that extends beyond just delivering high-quality products. The company applies a long-term approach to economic, social and environmental responsibility for how its operations impact its stakeholders. Elos Medtech has specified certain strategic targets to ensure that there is continual improvement in these areas. For more information, please see:

elosmedtech.com/whoweare/sustainability.

VALUE CREATION FOR THE COMPANY AND OUR STAKEHOLDERS

VISION • MISSION • VALUE-BASED CULTURE • SUSTAINABLE FOCUS

THE GROUP'S PERFORMANCE

Development during the quarter

Net sales for the first quarter of the year were strong, at SEK 171.2 million, which represents a growth of 7.7 percent. The strongest growth was in the Orthopedics business area, which saw an increase of 25 percent, and with a strong develoment in robotic-assisted surgery products. Growth in the Dental business area was negative, -3 percent, but was compared with a very strong first quarter in 2020. Sales of proprietary products in Dental remained strong and were up by 5.4 percent. Proprietary products accounted for 14 percent of the Group's total net sales. Life Science grew 6 percent in the first quarter, driven by the polymer business and Elos Medtech's business in China.

The Group's total overheads in the first quarter were down by around 6 percent on the same quarter the year before, which meant that the sales increase had a significant impact on the Group's reported operating profit. Depreciation and amortization charges amounted to approximately 8 percent of net sales, which is around SEK 3 million less than in the same quarter last year. The reduced charges were partly due to the completion of depreciation and amortization in selling expenses attributable to previous acquisition of just over SEK 1 million and partly to a lower investment rate in production in autumn 2019 and 2020. Investments in new production facilities, mainly at our Memphis site, made at the end of the previous quarter and the beginning of this quarter, are expected to be taken into use in the second quarter of this year.

The increase in sales coupled with flat overheads resulted in a strong quarterly operating profit with an operating margin of 14.6 percent and an operating profit of SEK 25.0 million. All business areas contributed to the improvement in earnings.

Net sales January-March 2021

The Group's total net sales for the quarter increased to SEK 171.2 (158.9) million. The increase of 7.7 percent on the first quarter of

last year was driven by Orthopedics, which grew 25.4 percent, and Life Science, which grew 5.9 percent, while Dental contracted by 3.5 percent. Net sales of proprietary products in the Dental business area grew 5.4 percent and accounted for 14.1 (14.0) percent of the Group's total net sales. In local currencies, the Group's total net sales increased by 14.2 percent.

Earnings January-March 2021

Operating profit for the first quarter amounted to SEK 25.0 (11.9) million, corresponding to an operating margin of 14.6 (7.5) percent. Profit after financial items amounted to SEK 27.1 (6.6) million and profit after tax amounted to SEK 20.0 (5.4) million.

Net financial items

Net financial items amounted to SEK 2.1 (-5.3) million. Interest expenses for the quarter, including interest on lease liabilities in accordance with IFRS 16, totaled SEK -2.6 (-3.2) million. Exchange rate differences and the revaluation of interest rate swaps both had a positive impact on the Group's net financial items, of SEK 2.8 (2.2) million and SEK 2.1 (-4.3) million, respectively.

Earnings per share

Undiluted and diluted earnings per share for the quarter amounted to SEK 2.48 (0.67).

Financial position and liquidity

Consolidated total assets increased during the period to SEK 1,069.5 (1,100.5) million. Equity increased by SEK 40 million over the period with translation of foreign subsidiaries accounting for SEK 22 million of the increase. In total, equity amounted to SEK 580.3 (576.9) million. Equity per share, calculated on 8,068,000 shares, amounted to SEK 71.93 (71.50). At the end of the quarter, risk-bearing capital amounted to SEK 603.6 (599.6) million, corresponding to 56.4 (54.5) percent of total capital. The Group's equity ratio was 54.2 (52.4) percent.

Net sales, SEK million Operating profit, SEK million

The Group's net debt increased during the period, to SEK 268 (346.0) million. Cash and cash equivalents including an unutilized bank overdraft facility amounted to SEK 144.2 (118.1) million.

Investments

The Group's investments during the first quarter amounted to SEK 35.9 (6.3) million and mainly relate to the expansion of the Skara site and new machinery in our orthopedic business.

Cash flow

The Group's cash flow from operating activities during the quarter amounted to SEK 24.3 (9.0) million, driven mainly by strong earnings. The change in the working capital was negative, SEK -10.3 (-13.2) million, primarily due to an increase in trade receivables. Cash flow from investing activities in the first quarter amounted to SEK -35.8 (-6.2) million and refers mainly to continued investments in machinery in Memphis but also to the continued construction of the production hall in Skara. New borrowings during the quarter totaled SEK 9.1 (5.3) million while repayments on existing borrowings were made in the amount of SEK -12.8 (-15.8) million. Cash flow for the quarter amounted to SEK -15.2 (-8.6) million and the Group's cash and cash equivalents amounted to SEK 76.7 (48.4) million.

Personnel

The average number of employees in the Group in the first quarter was 531, a decrease of 1 percent from 537 in the previous year. At the end of the period, the number of employees in the Group was 528 (538).

Events after the end of the quarter

No events after the balance sheet date have occurred that materially affect the assessment of the financial information contained in this report.

OUR THREE BUSINESS AREAS

DENTAL

Elos Medtech is a qualified partner to globally leading dental companies. Our offer covers design, development, serial production and global distribution. We are specialized in dental implants.

The offer also includes proprietary products in digital dental care and instruments, either on an OEM basis or under our own brand, Elos Accurate®.

ORTHOPEDICS

Elos Medtech is a focused partner for everything from design and prototypes to serial production and global distribution. We have opted to specialize in the following markets: spine, trauma and reconstruction. We collaborate with the world's leading orthopedic companies.

LIFE SCIENCE

Elos Medtech is a specialized global partner for injection molding of high-tech polymer and cutting techniques for primarily steel and brass. We also offer tool design and combination products made from polymer and aluminum, for example. The markets we focus on our diagnostics, hearing aids, diabetes, cardiovascular and neurosurgery.

BUSINESS AREA OVERVIEW

	Growth
SEK million Net sales by business area	Jan-March 2021	Jan-March 2020	Jan-March 2021	April March 2020/21	Jan-Dec 2020
Dental	63.7	66.0	-3.5%	210.1	212.4
Orthopedics	58.7	46.8	25.4%	191.4	179.5
Life Science	48.8	46.1	5.9%	190.8	188.1
Total net sales	171.2	158.9	7.7%	592.3	580.0

There are no sales between the business areas.

		Operat ing margin		Operat ing margin
SEK million	Jan March	Jan March	Jan March	Jan March	April March	Jan-Dec
Operating profit by business area	2021	2021	2020	2020	2020/21	2020
Dental	11.6	18.2%	4.4	6.6%	25.4	18.2
Orthopedics	6.1	10.4%	0.2	0.3%	26.9	21.0
Life Science	8.5	17.4%	8.2	17.7%	29.6	29.3
Unallocated Group expenses	-1.2		-0.8		-5.3	–4.9
Total operating profit	25.0	14.6%	11.9	7.5%	76.6	63.6

There are no sales between the business areas.

Net sales by business area (SEK million) Operating profit by business area (SEK million)

BUSINESS AREA DENTAL

NET SALES SEK 63.7 million EBITDA SEK 16.2 million (25.5%) EBIT SEK 11.6 million (18.2%)

Key events in the business area during the quarter

• Net sales increased by nearly SEK 3 million from the previous quarter to SEK 63.7 million. However, the comparative period in 2020 was the best quarter in the company's history, which affects the percentage growth rate. We are pleased to note that the market is now back at its pre-pandemic level.
• A sharp improvement in profitability and an operating margin of SEK 11.6 million – the best result in the business area's history – were mainly due to the product mix.
• Net sales of proprietary products continued to increase, to SEK 24.2 (22.3) million, and accounted for 14.1 percent of the Group's total net sales.

• Received 510(k) clearance from the US Food and Drug Administration (FDA) for expanded use of Elos Accurate® Hybrid Base, a product in the digital workflow.

Growth

-3%

• Customer activity is picking up in Asia and the Middle East to supply the growing market with dental implants.
• The business area is strengthened as Søren Olesen switches fully to his role as Global Business Director Dental with a continued focus on growth, product development and strategic business development. The planned transfer of leadership at Elos Medtech's Danish site was completed successfully as Tina Friis-Poulsen, formerly Quality Manager, took over at the helm.

Dental Net sales and operating profit (SEK million)

BUSINESS AREA ORTHOPEDICS

NET SALES SEK 58.7 million EBITDA SEK 10.6 million (18.1%) EBIT SEK 6.1 million (10.4%)

Key events in the business area during the quarter

• Strong growth in the quarter as net sales increased to SEK 58.7 million.
• With hospital and OEM feedback remaining increasingly positive and first quarter procedure volumes increasing, we see good demand for the products we manufacture.
• Strong demand for robotic-assisted surgery products, which is a growth engine, and a growing share of sales in the business area.
• Activity at Elos Medtech's US site remained high in the first quarter to ensure capacity for the growing demand for robotic-assisted surgery products.

Growth

25%

• Ongoing activity with customers regarding business development projects and the transfer of products between the company's sites in order to provide critical capacity and thus meet the growing demand through a global offering.

Orthopedics Net sales and operating profit (SEK million)

BUSINESS AREA LIFE SCIENCE

NET SALES SEK 48.8 million

EBITDA SEK 12.7 million (26.1%) EBIT SEK 8.5 million (17.4%)

Key events in the business area during the quarter

• Net sales for the quarter amounted to SEK 48.8 million, which was a slight increase compared with the previous quarter as well as with the comparative period in 2020.
• Elos Medtech's polymer business and Chinese business both saw strong growth in the quarter.
• The polymer business saw increased demand for production in a cleanroom environment from both new and existing customers.
• The business area comprises several different markets where some markets have been more impacted by Covid-19, both positively and negatively. This trend continued into

the first quarter of 2021, resulting in a mixed performance for the business area.

Growth

6%

• A change of leading position in Elos Medtech Skara will take place. Managing Director Mathias Andersson has decided to leave the company. As an interim solution, Anders Björklund, Group QA Director, will take over the reins from June 1.
• Due to the current market situation marked by a shortage of raw materials, Elos Medtech is monitoring developments closely to minimize any risks and ensure a stable supply chain.

Life Science Net sales and operating profit (SEK million)

OTHER INFORMATION

Accounting policies

This condensed interim report for the Group has been prepared in accordance with IAS 34 Interim Reporting and the relevant provisions in the Annual Accounts Act. The interim report for the Parent Company has been prepared in accordance with Chapter 9 of the Annual Accounts Act, Interim Report. The same accounting principles and bases of calculation as applied in the most recent annual report have been used for the Group and the Parent Company.

In addition to in the financial statements, disclosures in accordance with IAS 34.16A are also presented in parts of the interimreport.

Segment reporting

The internal financial follow-up by business area is adapted to the Group's different customer segments and uses operating profit as a measure to assess segment performance. Directly attributable items and items that can reasonably be allocated by segment have been included in the segment's operating profit .

Unallocated Group items mainly refer to note-related costs.

Government grants

Reported government grants by function	Jan March 2021	Jan March 2020	Jan-Dec 2020
Cost of goods sold	-	0.7	35.0
Selling expenses	-	0.1	2.2
Administrative expenses	-	-	4.3
Development costs	-	-	1.9
Financial expenses	-	-	1.6
Total government grants
received	-	0.8	45.0

Financial instruments at fair value

For its property loans in the US, the Group swaps its variable interest rate for a fixed rate through interest rate swaps. These interest rate swaps are recognized at fair value via the income statement. Unrealized gains and losses arising from fluctuations in the fair values of the financial instruments are recognized in net financial items in the consolidated income statement. For interest rate swaps, fair value is determined based on market prices. If such prices are not available, fair value is determined by discounting the difference between the contractual interest rate and the interest rate that can be obtained at the balance sheet date for the remaining contract term. Any premiums paid for the swap contract are recognized as interest over the term of the contract. As Elos Medtech intends to hold these derivatives to maturity, mark-to-market accounting of the derivatives over time will not affect earnings or cash flow.

Fair value measurement of interest rate derivatives had a positive impact on quarterly earnings of SEK 2.1 (-4.3) million.

Significant risks and uncertainties

The Group's principal risks and uncertainties include operational and financial risks. Among operational risks, Elos Medtech is primarily affected by risks associated with customers and markets, but also other external factors such as price risks for materials and supplies. The Group also faces financial risks associated with changes in exchange rates and credit. A detailed description of the Group's risks and uncertainties, along with how it manages them, is provided in the Directors' Report and in Note 42 and Note 44 in the 2020 Annual Report.

Covid-19 has led to a major disruption in economies worldwide, which has affected several of the markets in which Elos Medtech operates. The spread of the virus in waves and the vaccination rate remain difficult to assess and it is therefore not possible to predict for how long the pandemic will continue to affect the company. The impact on the Group in the first quarter of 2021 was minor.

No additional risks have been identified that may affect the Group's financial results and position as of March 31, 2021.

Related party transactions

The company had no transactions with related parties during the reporting period.

Parent Company

In addition to the administration of central management issues, the parent company also provide Group-wide support in IT and marketing, quality management, risk management, financing and financial control.

The Parent Company's net sales in the first quarter amounted to SEK 6.5 (6.3) million. Profit after financial items amounted to SEK 8.0 (11.9) million, where SEK 9.9 (11.6) million constitutes exchange rate differences mainly related to the translation of loans to subsidiaries. The Parent Company's profit after tax was SEK 6.3 (9.3) million. The percentage of risk-bearing capital was 84.7 (78.4) percent. The equity ratio was 84.6 (78.1) percent.

Future-oriented information

The company does not make forecasts.

Future-oriented information in this report is based on management's expectations at the time of the report. Although the Board of Directors and management feel that these expectations are reasonable, it is no guarantee that the expectations are, or will prove to be, correct. Consequently, future outcomes mayvary significantly compared to the future-oriented informationdue to such things as changes in the market conditions for the Group's services or changes in the overall situation concerningthe economy, market and competition, changes in legal requirements and other policy measures as well as fluctuations inexchange rates. The company does not undertake to update or correct any future-oriented information except as stipulated by law.

Examination by the auditors

This report has not been subject to a review by the company's auditors.

Gothenburg, 28 April 2021

Elos Medtech AB (publ)

The Board of Directors

CONDENSED CONSOLIDATED INCOME STATEMENT AND STATEMENT OF COMPREHENSIVE INCOME

SEK million		Jan March	Jan March	April March	Jan-Dec
Income statement		2021	2020	2020/21	2020
Net sales		171.2	158.9	592.3	580.0
Cost of goods sold		-112.0	-110.8	-393.4	-392.2
Gross profit		59.2	48.1	198.9	187.8
Selling expenses		-8.2	-9.9	-27.1	-28.8
Administrative expenses		-21.2	-22.1	-79.3	-80.2
Development costs		-4.4	-5.2	-14.7	-15.5
Other operating income/expenses		-0.4	1.0	-1.1	0.3
Operating profit		25.0	11.9	76.7	63.6
Financial income		4.9	2.2	3.0	0.3
Financial expenses		-2.8	-7.5	-16.0	-20.7
Profit after financial items		27.1	6.6	63.7	43.2
Tax expense		-7.1	-1.2	-13.1	-7.2
Profit after tax		20.0	5.4	50.6	36.0
Attributable to Parent Company shareholders		20.0	5.4	50.6	36.0
Undiluted and diluted earnings per share, SEK*		2.48	0.67	6.28	4.47
Statement of comprehensive income
Profit after tax		20.0	5.4	50.6	36.0
Other comprehensive income
Items that will not be reclassified to profit or loss
Actuarial gains and losses		-	-	-0.1	-0.1
Tax		-	-	-0.3	-0.3
		0.0	-	-0.4	-0.4
Items that may be reclassified to profit or loss
Translation differences for the period		21.6	33.8	-51.1	-38.9
Tax		-1.6	-2.2	4.0	3.4
		20.0	31.6	-47.1	-35.5
Other comprehensive income, net		20.0	31.6	-47.5	-35.9
Comprehensive income for the year		40.0	37.0	3.1	0.1
Attributable to Parent Company shareholders		40.0	37.0	3.1	0.1
Operating profit before depreciation and amortization (EBITDA)	%	22.4	17.6	22.6	21.3
Operating profit (EBIT)	%	14.6	7.5	12.9	11.0
	SEK
Depreciation and amortization charged to earnings	million	13.3	16.1	57.2	60.0

* Attributable to Parent Company shareholders' share of profit after tax.

CONDENSED CONSOLIDATED STATE-MENT OF FINANCIAL POSITION

SEK million
Balance sheet	31 Mar 2021	31 Mar 2020	31 Dec 2020
Assets
Intangible assets	266.6	303.7	253.8
Property, plant and equipment	450.2	457.7	412.2
Financial assets	1.5	0.3	1.4
Current assets	274.5	290.4	246.1
Cash and cash equivalents	76.7	48.4	88.5
Total assets	1,069.5	1,100.5	1,002.0
Equity and liabilities
Equity	580.3	576.9	540.3
Non-current liabilities	316.0	363.3	305.3
Current liabilities	173.2	160.3	156.4
Total equity and liabilities	1,069.5	1,100.5	1,002.0

CONDENSED CONSOLIDATED CASH FLOWS STATEMENT

SEK million Cash flow	Jan-March 2021	Jan-March 2020	April-March 2020/21	Jan-Dec 2020
Profit after financial items	27.1	6.6	63.7	43.2
Reversal of depreciation and amortization	13.3	16.1	57.2	60.0
Adjustment for non-cash items	-2.6	1.9	6.8	11.3
Tax paid	-3.2	-2.4	-11.4	-10.6
Change in working capital	-10.3	-13.2	24.5	21.6
Cash flow from operating activities	24.3	9.0	140.8	125.5
Investments in fixed assets	-35.9	-6.3	-86.1	-56.5
Sale of fixed assets	0.1	0.1	0.2	0.2
Cash flow from investing activities	-35.8	-6.2	-85.9	-56.3
Operating cash flow	-11.5	2.8	54.9	69.2
Change in overdraft facilities	-	-0.9	0.1	-0.8
Borrowings	9.1	5.3	46.7	42.9
Repayment of borrowings	-12.8	-15.8	-70.4	-73.4
Cash flow from financing activities	-3.7	-11.4	-23.6	-31.3
Cash flow for the period	-15.2	-8.6	31.3	37.9
Cash and cash equivalents at the beginning of the period	88.5	55.2	48.4	55.2
Exchange rate difference in cash and cash equivalents	3.4	1.8	-3.1	-4.7
Cash and cash equivalents at the end of the period	76.7	48.4	76.6	88.5

CONDENSED CONSOLIDATED STATE-MENT OF CHANGES IN EQUITY

SEK million	31 Mar 2021	31 Mar 2020	31 Dec 2020
Opening balance	540.3	539.9	539.9
Effect of changed tax rate	-	-	0.3
Total comprehensive income	40.0	37.0	0.1
Closing equity	580.3	540.3	540.3

KEY PERFORMANCE INDICATORS, GROUP

		Jan-March	Jan-March	Jan-Dec
		2021	2020	2020
Return on operating capital	%	8.8	5.3	7.6
Return on equity	%	13.9	3.9	6.7
Share of risk-bearing capital	%	56.4	54.5	55.9
Equity ratio	%	54.2	52.4	53.9
Net debt/EBITDA *	times	2.0	2.9	2.0
Investments, not including acquisitions	SEK million	35.9	6.3	56.5
Average number of employees	number	531	537	522

* R12

DATA PER SHARE

		Jan-March	Jan-March	Jan-Dec
		2021	2020	2020
Undiluted and diluted earnings per share, SEK*	SEK million	2.48	0.67	4.47
Average number of shares	thousands	8,068	8,068	8,068
Number of shares at the end of the period	thousands	8,068	8,068	8,068
Equity per share	SEK	71.93	71.50	66.97
Share price at the end of the period	SEK	133.5	69.8	108.0
Dividend **	SEK			1.50

* Attributable to Parent Company shareholders' share of profit after tax

** Proposed

BUSINESS AREA INFORMATION

Jan-March 2021	Jan-March 2020	Jan-March 2021	April March 2020/21	Jan-Dec 2020
63.7	66.0	-3.5%	210.1	212.4
58.7	46.8	25.4%	191.4	179.5
48.8	46.1	5.9%	190.8	188.1
171.2	158.9	7.7%	592.3	580.0

There are no sales between the business areas.

SEK million	Jan-March	Jan-March	April March	Jan-Dec
EBITDA by business area	2021	2020	2020/21	2020
Dental	16.2	8.8	44.3	36.9
Orthopedics	10.6	6.4	47.3	43.1
Life Science	12.7	13.6	47.6	48.5
Unallocated Group expenses	-1.2	-0.8	-5.3	–4.9
Total profit before depreciation and amortiza
tion	38.3	28.0	133.9	123.6
Depreciation and amortization by business area
Dental	-4.6	-4.4	-18.9	-18.7
Orthopedics	-4.5	-6.2	-20.4	-22.1
Life Science	-4.2	-5.4	-18.0	-19.2
Total depreciation and amortization	-13.3	-16.1	-57.3	-60.0
Operating profit by business area
Dental	11.6	4.4	25.4	18.2
Orthopedics	6.1	0.2	26.9	21.0
Life Science	8.5	8.2	29.6	29.3
Unallocated Group expenses	-1.2	-0.8	-5.3	–4.9
Total operating profit	25.0	11.9	76.6	63.6

QUARTERLY RESULTS FOR THE GROUP

SEK million	Q1	Q4	Q3	Q2	Q1	Q4	Q3	Q2
Quarterly results	2021	2020	2020	2020	2020	2019	2019	2019
Net sales	171.2	154.8	147.9	118.3	158.9	158.3	157.1	184.1
Cost of goods sold	-112.0	-102.6	-100.4	-78.3	-110.8	-108.8	-109.3	-128.0
Gross profit	59.2	52.2	47.5	40.0	48.1	49.5	47.8	56.1
Sales, admin and development costs	-33.8	-32.2	-30.3	-24.8	-37.2	-35.5	-34.3	-41.1
Other operating income and
expenses	-0.4	-1.1	0.7	-0.3	1.0	0.1	0.7	0.6
Operating profit	25.0	18.9	17.9	14.9	11.9	14.1	14.2	15.6
Financial income	4.9	-	-	0.1	2.2	2.3	-	-
Financial expenses	-2.8	-5.6	-3.7	–5.9	-7.5	-6.4	-2.8	-7.0
Profit after financial items	27.1	13.3	14.2	9.1	6.6	10.0	11.4	8.6
Tax expense	-7.1	-2.2	-1.6	-2.2	-1.2	-2.4	-2.4	-2.0
Profit after tax	20.0	11.1	12.6	6.9	5.4	7.6	9.0	6.6

PARENT COMPANY INCOME STATEMENT

SEK million	Jan-March	Jan-March	April-March	Jan-Dec
Income statement	2021	2020	2020/21	2020
Net sales	6.5	6.3	20.1	19.9
Selling expenses	-2.2	-1.9	-7.0	-6.8
Administrative expenses	-6.7	-5.7	-23.1	-22.3
Other operating income/expenses	0.0	0.2	-0.5	0.0
Operating profit	-2.4	-1.1	10.5	-9.2
Income from investments in Group companies	-	-	37.3	37.3
Interest income, Group companies	1.1	2.1	6.8	7.8
Other interest income and similar income	9.9	11.6	-1.4	0.3
Other interest expense and similar charges	-0.6	-0.7	-24.7	-24.8
Profit after financial items	8.0	11.9	7.5	11.4
Appropriations	-	-	1.6	1.6
Tax on profit for the year	-1.7	-2.6	1.4	0.5
Profit after tax	6.3	9.3	10.5	13.5

* Profit after tax is the same as comprehensive income for the year.

CONDENSED PARENT COMPANY BALANCE SHEET

SEK million
Balance sheet	31 Mar 2021	31 Mar 2020	31 Dec 2020
Assets
Intangible assets	4.0	3.7	3.9
Property, plant and equipment	0.3	0.4	0.3
Financial assets	406.5	413.1	397.1
Current assets	35.6	36.2	54.9
Cash and cash equivalents	20.2	32.1	23.9
Total assets	466.6	485.5	480.1
Equity and liabilities
Equity	391.2	380.7	385.0
Untaxed reserves	4.1	5.8	4.1
Provisions for pensions	7.5	6.7	7.3
Non-current liabilities	24.8	42.4	25.8
Current liabilities	39.0	49.9	57.9
Total equity and liabilities	466.6	485.5	480.1

RECONCILIATION BASIS FOR ALTERNATIVE PERFORMANCE MEASURES

The interim report presents certain financial performance measures of earnings trend, financial position and cash flow that are not defined in accordance with IFRS. These performance measures are intended to serve as important supplementary performance indicators of the Group's performance and financial position and the purpose is to provide a better understanding of the business. Elos Medtech's definitions of these measures may differ from other companies' definitions of the same concepts. The alternative performance measures presented in the interim reports should not be regarded as a replacement to terms and concepts in accordance with IFRS. They are instead intended as a supplement.

Calculations of non-IFRS performance measures that are not mentioned elsewhere in the interim report are presented below. For complete information regarding the calculation and reasons for using alternative performance measures, please see: www.elosmedtech.com.

SEK million	Jan-March	Jan-March	April March	Jan-Dec
Growth	2021	2020	2020/21	2020
Reported net sales	171.2	158.9	592.3	580.0
Net sales for the same period last year	158.9	189.9	658.4	689.4
Change in net sales	12.3	-31.0	-66.1	-109.4
Growth, %	7.7	-16.3	-10.0	-15.9
Net sales adjusted for currency translation
Exchange rate changes	-9.0	4.8	-24.5	-10.7
Net sales for the same period last year adjusted for
currency translation	149.9	194.7	633.9	678.7
Growth adjusted for currency translation, %	14.2	-18.4	-6.6	-14.5

	Jan-March	Jan-March	April March	Jan-Dec
EBITDA	2021	2020	2020/21	2020
Reported operating profit	25.0	11.9	76.7	63.6
Depreciation and amortization	13.3	16.1	57.2	60.0
EBITDA	38.3	28.0	133.9	123.6

Risk-bearing capital	31 Mar 2021	31 Mar 2020	31 Dec 2020
Equity	580.3	576.9	540.3
Deferred tax liability	23.3	22.7	19.7
Risk-bearing capital	603.6	599.6	560.0

Net debt	31 Mar 2021	31 Mar 2020	31 Dec 2020
Non-current interest-bearing provisions for pensions	64.4	59.8	63.5
Non-current interest-bearing liabilities	228.3	280.8	222.1
Current interest-bearing liabilities	51.7	53.8	51.3
Total liabilities	344.4	394.4	336.9
Cash and cash equivalents	-76.7	-48.4	-88.5
Net debt	267.7	346.0	248.4

Liquidity reserve	31 Mar 2021	31 Mar 2020	31 Dec 2020
Cash and cash equivalents	76.7	48.4	88.5
Bank overdraft facilities granted	67.5	69.7	67.0
Liquidity reserve	144.2	118.1	155.5

Financial calendar

Activity	Date
Annual General Meeting 2021	May 3
Interim report January-June	July 16
Interim report January-September	October 20
Year-end report 2021	February 24 2022

Publication

This information in this report is information that Elos Medtech AB (publ) is required to publish under the EU Market Abuse Regulation. The information was submitted (by the contact person specified below) for publication on April 28 at 08:00 a.m. (CET).

Elos Medtech AB (publ) is a Swedish limited liability company, whose B shares are listed on Small Cap, NASDAQ Stockholm AB. Elos Medtech's corporate governance is based on Swedish legislation and the listing agreement with NASDAQ Stockholm AB.

This is a translation of the Swedish version of the Interim report January to March. When in doubt, the Swedish wording prevails.

For questions about the report, please contact:

Jan Wahlström President and CEO Mob: +46 70 212 18 89 Email: jan.wahlstrom@elosmedtech.com

Ewa Linsäter CFO Mob: +46 76 633 32 33 Email: ewa.linsater@elosmedtech.com

FIND US HERE

Elos Medtech AB (publ)

Torsgatan 5B SE-411 04 Gothenburg SWEDEN Ph: +46 10 171 20 00 Reg. No: 556021-9650 info@elosmedtech.com www.elosmedtech.com