Medicover

Earnings Release • Feb 12, 2021

YEAR-END REPORT JANUARY–DECEMBER 2020

Fourth quarter

• Revenue amounted to €297.7m (€229.7m), an increase of 29.6% with an organic growth of 26.6%.
• Operating profit (EBIT) was €29.9m (€10.8m), representing an operating margin of 10.1% (4.7%).
• Net profit amounted to €18.8m (€6.6m), which represents a net profit margin of 6.3% (2.9%).
• EBITDA was €53.1m (€33.4m), an increase of 59.1%. EBITDA margin was 17.8% (14.5%).
• EBITDAaL amounted to €41.2m (€22.3m), corresponding to an EBITDAaL margin of 13.9% (9.7%).
• Net cash flow from operating activities was €40.4m (€25.0m).
• Basic/diluted earnings per share were €0.123 (€0.048).
• Covid-19 had a positive financial impact on operating performance.

Full year

• Revenue amounted to €997.8m (€844.4m), an increase of 18.2% with an organic growth of 11.3%.
• Operating profit (EBIT) was €61.3m (€46.5m), an increase of 32.1%, representing an operating margin of 6.1% (5.5%).
• Net profit amounted to €27.3m (€24.7m), which represents a net profit margin of 2.7% (2.9%).
• EBITDA was €157.5m (€120.7m), an increase of 30.6%. EBITDA margin was 15.8% (14.3%).
• EBITDAaL amounted to €108.5m (€80.6m), an increase of 34.7% corresponding to an EBITDAaL margin of 10.9% (9.5%).
• Net cash flow from operating activities was €156.0m (€87.3m).
• Basic/diluted earnings per share were €0.182 (€0.168).
• Directed share issue of 15 million shares completed in June 2020, net proceeds of €141.9m.
• The board of directors proposes a dividend for 2020 of €0.07 per share.

REVENUE AND EARNINGS

€ millions (€m)	Q4 2020	Q4 2019	Growth	FY 2020	FY 2019	Growth
Revenue	297.7	229.7	30%	997.8	844.4	18%
Operating profit (EBIT)	29.9	10.8	178%	61.3	46.5	32%
Operating profit margin	10.1%	4.7%		6.1%	5.5%
Net profit	18.8	6.6	185%	27.3	24.7	11%
Net profit margin	6.3%	2.9%		2.7%	2.9%
Basic/diluted earnings per share, €	0.123	0.048	156%	0.182	0.168	8%
EBITDA	53.1	33.4	59%	157.5	120.7	31%
EBITDA margin	17.8%	14.5%		15.8%	14.3%
EBITDAaL	41.2	22.3	85%	108.5	80.6	35%
EBITDAaL margin	13.9%	9.7%		10.9%	9.5%
EBITA	32.7	13.9	135%	76.9	53.7	43%
EBITA margin	11.0%	6.0%		7.7%	6.4%

Definition and reconciliation of alternative performance measures are available at www.medicover.com/financial-information.

Medicover is a leading international healthcare and diagnostic services company and was founded in 1995. Medicover operates a large number of ambulatory clinics, hospitals, specialty-care facilities and laboratories and the largest markets are Poland and Germany. In 2019, Medicover had revenue around €844 million and 28,800 employees. For more information, go to www.medicover.com

CEO STATEMENT

2020 has been a very challenging year and the coronavirus pandemic has in many different ways impacted the world and our business. Not least our people in the frontline, who tirelessly and in an outstanding way continue to fight against the virus. It is impressive to see how challenges have been tackled and taken care of with tremendous professionalism, dedication and care. We have contributed to high national Covid-19 testing capacity in our markets and treatment of Covid-19 patients in our hospitals. I am very proud of how we have supported the common cause of preserving health and life in a historically difficult year, and I want to express a profound thank you to all our staff for their unprecedented efforts.

Medicover's growth journey has, despite the pandemic, continued during the year. Revenue for the final quarter grew a strong 29.6% to €297.7m (€229.7m) with organic growth of 26.6%. Revenue for the year grew 18.2% to €997.8m (€844.4m) of which 11.3% was organic growth. It will soon be 4 years since

our listing in May 2017, and we have over these 4 years more than doubled our revenue, representing compound revenue growth of 19.8% per annum.

FFS and other services (FFS) increased by 40.0% during the quarter, now representing 58% of total revenue. Full year revenue growth was 24.0% now representing 54% of total revenue.

EBITDA for the quarter increased by a strong 59.1% to €53.1m (€33.4m) and increased by 30.6% for the year to €157.5m (€120.7m). Margin expansion was driven by additional Covid-19 services, the resilient level of demand for Medicover's essential services and continuing impact of cost optimisation. EBITDA margin for the quarter expanded by 330bps to 17.8% (14.5%) and by 150bps to 15.8% (14.3%) for the year. Adjusted EBITDA-margin for the year came in at 16.4%, just at the top end of the target range set for 2022.

Healthcare Services quarterly revenue grew by 19.4% to €149.0m (€124.8m), with organic growth of 10.9%. Revenue growth for the year was 20.1% with organic growth of 5.2%, reflecting the dips of Q2 lock-downs, reaching €539.7m (€449.3m). At the end of the year the division had 1.4 million members, growing 36,000 members in the final quarter, up 4.1% compared to the same period last year. After the second quarter 2020, which was only the second quarter in our 25-year history with negative member growth, it is encouraging to see the second half of 2020 having member growth of 59,000 people, which was 2.7x growth in the same period 2019, evidencing the bounce-back and resilience in our business. FFS grew 37.9% in the quarter and represented 49% of divisional revenue, full year FFS revenue growth was 36.4%.

Healthcare Services EBITDA grew by 21.1% to €21.5m (€17.8m) in the quarter, an EBITDA margin of 14.4% (14.2%). EBITDA for the year grew by a strong 37.8% to €84.1m (€61.0m) corresponding to a margin of 15.6% (13.6%). Margin expansion was mainly supported by Covid-19 services in our Indian hospitals, but also by cost management and by supporting our members through digital health platforms.

Diagnostic Services performed very well in the quarter supported by Covid-19 services, mostly PCR and antigen/antibody testing. Revenue for the quarter grew by a strong 42.4%, with organic growth of 45.8%, to €154.6m (€108.6m). Revenue for the year grew by 15.9% to €473.4m (€408.7m) with organic growth of 18.0%. The number of laboratory tests for the quarter increased by 8.1% to 29.1 million (26.8 million). The number of tests for the full year reached 103.9 million and decreased with 2.7%. During the quarter 1.2 million Covid-19 tests were performed, which was more than double the third quarter, illustrating the significant upscaling in capacity. FFS grew by 42.7% for the quarter and represented 68% of divisional revenue, full year FFS revenue growth was 15.3%.

Diagnostic Services EBITDA grew a very strong 99.2% to €37.4m (€18.7m), an EBITDA margin of 24.2% (17.3%) in the quarter, boosted by Covid-19 services. EBITDA for the year increased 18.5% to €89.8m (€75.7m), an EBITDA margin of 19.0% (18.5%).

The pandemic has many consequences, one of them being a leap frog jump in the consumer adoption of digital services in our industry which we have seen throughout our business, illustrated by the following examples. In our core Polish employer paid business, our virtual care has grown exponentially during the year to service our customer demands and expectations, reaching more than 1.4 million virtual visits for the

year, 4.5x the prior year level, with the year-end month at 6.5x last year's level. Consumer response has been very positive with Net Promoter Scores (NPS) in the 40's. Looking at our main e-commerce site, the value of paid FFS orders for the year doubled versus the prior year, and finally, looking at one of our largest diagnostic geographies, the number of test orders that were placed digitally in advance grew more than 70% versus the prior year to represent 33% of total FFS test orders for the year, up from 22% the prior year. I think these three examples bring home both the message as to how important it has been during the pandemic year 2020 to be able to increase remote and digital service levels to our customers and secondly, how important and strategic our historic focus on investments into digital technology and services now has proven to be.

Despite the historic challenges in the pandemic year 2020, we have traded at the upper end of our 3-year 2022 margin target, and despite the severe dip in Q2. We remain confident on achieving or exceeding our financial targets, despite the current impact on the economy and broader impact likely to materialise through 2021 from additional protective measures and the ongoing impact.

Sustainability is fundamental to the well-being of the planet and mankind, and we all, individuals and organisations, have a responsibility to share this task. I am proud of our mission "to improve and sustain health and well-being" which illustrates our important contribution to a better and more inclusive healthcare system in the markets where we operate. I invite you to study our new Sustainability reporting, included in the upcoming annual report, which details steps taken to support our long-term mission.

Our top priority as long as the pandemic continues remains to care for and protect our employees and help our customers and patients stay healthy. We are proud that already a significant proportion of our staff have received the first vaccination dose, enabling them to safely continue to provide care. Our good result comes from great teamwork and it would not have been possible without the professionalism and dedication from all our employees. Again, I would like to express a sincere gratitude to all our staff across our markets – thank you.

Fredrik Rågmark CEO

REVENUE FOURTH QUARTER 2020

Consolidated revenue amounted to €297.7m (€229.7m), an increase of 29.6% with an organic growth of 26.6%, supported by Covid-19 services and resilience of demand for underlying services.

Revenue from Covid-19 services, such as diagnostics or treating patients for Covid-19 was €52.4m. This was offset by lower demand for certain services, such as elective surgeries and continuing customer reluctance to access diagnostics or healthcare. The negative impact on revenue due to Covid-19 is uncertain, however it is estimated to be in the range of €17-27m, resulting in a net positive impact ranging between €25-35m.

Business combinations made within the last twelve months contributed €15.8m to revenue and predominantly represented Medicover Hospitals India (MHI) for the two months of October and November.

Foreign exchange fluctuations had a negative impact of 3.9% with weakness for all non-euro markets.

Healthcare Services revenue reached €149.0m (€124.8m), up 19.4%, supported by acquisitions, with an organic growth of 10.9%.

Revenue from Covid-19 services, mainly treating Covid-19 patients was €11.2m. This was offset by lower demand for certain services principally elective surgeries due to customer continuing reluctance to seek diagnosis and treatment for conditions, as well as the negative effects on employment and economic activity. The negative impact on revenue due to Covid-19 is uncertain, however it is estimated to be in the range of €14-20m, some of which may be deferred, resulting in a net negative impact ranging between €3-9m.

Members grew by 4.1% to 1,353K (1,300K) year on year and by 36K compared to Q3 2020, which although weaker than prior to the pandemic, is encouraging. The integrated healthcare model has shown strong resilience as seen in previous economic downturns and government support actions for employment provided further support. Medicover has demonstrated the robustness of its medical provision infrastructure, with its welldeveloped digital health delivery platforms, which have enabled continuing support for members' health needs through the pandemic and in the last quarter in particular, now that new restrictions have been imposed. The utilisation of these channels has remained at a higher level than prior to the pandemic, particularly in services where digital delivery can match fully or better the in-person delivery. Utilisation overall is returning to normalised levels for the integrated healthcare model which is reassuring as contingent backlogs of illness and diagnosis are being cared for.

Fee-For-Services (FFS) activities, including inpatient admissions, were more variable over the quarter with some business lines showing organic growth and others showing lower or flat activity. The investment in the Pelican hospital increasing services in Romania has been supportive of organic growth. Activity levels have varied as restrictions have been progressively tightened over the quarter in all markets except India.

The fitness membership business is still heavily impacted from the pandemic and likely to continue to be impacted with the current resurgence of cases and restrictions. The pandemic presented an opportunity to acquire a gym chain in Poland with 19 gyms, which will be supportive for the business when restrictions are lifted.

During the quarter, Medicover also acquired three dental businesses in Poland with 28 chairs for a combined consideration of €11.9m.

Revenue from business combinations made within the last twelve months amounted to €15.6m, out of which €15.1m relates to MHI. Covid-19 services

represented almost 25% of the revenue for MHI, with 1,821 admissions. Elective services are still lower than normal levels as patients defer seeking treatment for conditions. All MHI Covid-19 admissions are funded by commercial insurance or FFS, with fees regulated by state authorities. The outlook remains uncertain, however at the time of writing this report, India in contrast to Europe is observing the lowest level of active infections in seven months and has started a wide scale vaccination programme.

Foreign exchange fluctuations had a negative impact of 4.0%, driven mainly by weakness for Poland.

Diagnostic Services revenue increased to €154.6m (€108.6m), up 42.4%, with an organic growth of 45.8%.

Revenue from Covid-19 services, mostly PCR and antibody/antigen testing, was €41.2m. A large proportion of the Covid-19 testing is contracted with and funded by health ministries or public health funds hence public paid funding increased by 41.8% and private pay funding by 42.7% compared to prior year quarter.

The negative impact on revenue due to Covid-19 is uncertain, however it is estimated to be in the range of €3-7m, a smaller part of which may be deferred, resulting in a net positive impact ranging between €34-38m.

The laboratory test volume increased by 8.1% to 29.1 million (26.8 million) and by 1.7 million compared to the prior quarter. Although demand levels have recovered sequentially, non-Covid-19 testing is still estimated to be weaker than normalised levels, reflecting some level of reluctance by the public to seek health treatment. 1.2 million Covid-19 tests were performed, supply chain issues continued in the quarter and impacted negatively the volume of tests performed. The concerns around Covid-19 variants' demand for genetic sequencing testing of positive samples is expected to increase.

There was a reduction in traffic in blood-drawing points (BDPs). This has been compensated by the organic growth of the number of BDPs. At the end of the quarter, the Group operated 733 BDPs with 28 new BDPs and 1 closed. The Group continues to invest in infrastructure, as well as specific Covid-19 facilities and machinery.

Foreign exchange fluctuations had a negative impact of 3.6% with weakness for all non-euro markets.

REVENUE FULL YEAR 2020

Consolidated revenue increased by 18.2% to €997.8m (€844.4m) with an organic growth of 11.3%.

January and February were unimpacted by Covid-19 with restrictions affecting services from the second half of March. Revenue was impacted severely for the second half of March and all of April in business lines exposed to FFS or where customers physically come to locations for services. Revenue started to recover in May, with Germany recovering to prior year levels by mid-May and other markets by the end of May or early June, supported by Covid-19 testing. Some smaller business units took to the end of June to recover to prior year levels. In the third quarter a strong rebound in revenue was recorded across almost all business units heavily supported by Covid-19 related testing, which continued through Q4 with an impact of new restrictions towards the end of the year. The negative impact on revenue due to Covid-19 is uncertain, however it is estimated to be

in the range of €117-136m. Revenue from Covid-19 services was €94.4m, resulting in an estimated net negative impact ranging between €23-42m.

Revenue from business combinations made within the last twelve months was €85.9m. This includes MHI for 11 months, Neomedic and dental/medical clinics.

Foreign exchange fluctuations had a negative impact of 3.3% with weakness for all non-euro markets.

Healthcare Services revenue grew by 20.1% to €539.7m (€449.3m) with an organic growth of 5.2%.

January and February showed good organic growth benefiting from strong underlying economic growth and expansion of Medicover services. The Covid-19 restrictions in late March, through April and early May had the largest impact on the FFS business lines, with fertility, elective services and dental impacted either from restrictions imposed by governments or patients deferring visits/procedures. The employer paid medical services have been resilient as seen in previous economic cycles.

From the latter half of Q2, a return to more normalised trading started and during Q3 activity returned to prior year levels in most business lines, supplemented by Covid-19 services most notably in MHI. Some areas such as fertility and dental have experienced deferred demand while other business lines still observe patients deferring treatment and diagnosis to some degree. The pickup in demand for elective services dropped again in Q4 due to new restrictions being progressively applied. Most business areas have however continued to operate, in comparison with Q2 when these were closed. The employer paid services have been supported by Medicover's extensive and well-developed digital platforms. Support for employment from government schemes resulted in lower retrenchment and low levels of net

disenrollment through the second quarter and a return to growth in the second half.

Medicover's employer paid services do not have a large direct exposure to the sectors most impacted economically by Covid-19. A favourable employment market prior to the crisis is likely to assist reabsorption of the unemployment that has and is likely to arise from the crisis in 2021. The broader economy will be negatively impacted through 2021 and Medicover expects growth levels and demand to be impacted over the year.

The negative impact on revenue due to Covid-19 is uncertain, however it is estimated to be in the range of €70-81m. Revenue from Covid-19 services was €28.3m, resulting in an estimated net negative impact ranging between €42-53m.

Revenue from business combinations made within the last twelve months amounted to €83.3m, out of which €72.1m related to MHI, consolidated in December 2019. The largest other component was Neomedic. MHI has been strongly supported by revenue from Covid-19 services, having admitted close to 7,100 Covid-19 patients. The total number of hospitals in MHI has increased from 11 at the start of 2020 to 16 at year-end with operationalised beds well in excess of 2,000. MHI is capable of expanding to 3,000 beds with the current infrastructure.

Foreign exchange fluctuations had a negative impact of 3.6%, driven mainly by weakness for Poland.

Diagnostic Services revenue grew by 15.9% to €473.4m (€408.7m) with an organic growth of 18.0%.

The revenue trend at the start of the year was strong with good underlying organic growth in all major markets. The impact of Covid-19 was apparent starting from the second half of March into April and May with restrictions imposed on activities and the public's access to services compounded with individuals deciding to defer diagnosis and treatment. From the end of May and

through June recovery of demand was recognised in all markets, with some faster than others. The second half has been characterised by strong demand for Covid-19 testing and reasonable to good levels of underlying testing with a drop off at the end of Q4 due to new restrictions in most markets.

The German market was the least impacted with reductions through April and in the beginning of May. By mid-May it had largely recovered to prior year levels supported by Covid-19 testing. Recovery was the strongest for private paid tests and assisted significantly by additional Covid-19 testing. Having the largest part of the Group's laboratory infrastructure in Germany lead to a swift increase in Covid-19 capacity.

Romania, Ukraine and Poland, the other major markets, were impacted by their dependence on patients coming to BDPs and contracts to service medical providers such as clinics or hospitals. Patients did not access services either due to restrictions or decisions to defer diagnosis and treatment. The individual BDP services recovered mostly from mid-May with good recovery by the end of May and through June and strong to reasonable underlying demand for the second half of the year. Contracts serving clinics and hospitals recovered more slowly, however by the end of June most were approaching or at prior year levels. There is still a visible negative impact due to Covid-19 with patients deferring diagnosis and treatment for conditions or not following chronic conditions as closely as before the pandemic. A rebound in this reluctance strengthened with new restrictions and higher levels of infection at the end of the year. This is to be expected due to risk of the severity of Covid-19. Some of this demand may be deferred, however certainly a large part related to ongoing monitoring of conditions is forgone.

Romania, with a large laboratory infrastructure and capacity, quickly started to provide Covid-19 testing for the health ministry. The Romanian Covid-19 test volume was held back due to supply chain issues. In Ukraine, capacity was commissioned only in the third quarter due to health ministry ambivalence on supporting private testing.

The negative impact on revenue due to Covid-19 is uncertain, however it is estimated to be in the range of €47-55m. Revenue from Covid-19 services was €66.1m, resulting in an estimated net positive impact ranging between €11-19m.

The laboratory test volume decreased by 2.7% to 103.9 million (106.7 million). 1.9 million Covid-19 tests have been performed.

Total BDPs at the end of the year amounted to 733, an increase of 63 over the year. The investments that were halted or delayed in Q2, were restarted and completed in the second half.

Foreign exchange fluctuations had a negative impact of 2.7% with weakness for all non-euro markets.

Revenue from external customers, recognised over time as services are rendered, by division, by payer and by country is disclosed in the following table.

€m	Q4 2020	Q4 2019	Growth	FY 2020	% of FY 2020	FY 2019	% of FY 2019	Growth
Healthcare Services
Revenue	149.0	124.8		539.7		449.3
Inter-segment revenue	-1.1	-0.2		-1.6		-0.7
Revenue from external
customers	147.9	124.6	18.7%	538.1		448.6		19.9%
By payer:
Public	15.3	12.7	20.7%	55.8	10.4%	40.0	8.9%	39.5%
Private	132.6	111.9	18.5%	482.3	89.6%	408.6	91.1%	18.0%
Funded	61.1	59.4	2.8%	237.8	44.2%	228.8	51.0%	3.9%
Fee-For-Service (FFS)	63.9	44.8	42.5%	221.3	41.1%	156.5	34.9%	41.4%
Other services	7.6	7.7	-0.1%	23.2	4.3%	23.3	5.2%	-0.4%
By country:
Poland	97.6	94.3	3.5%	358.4	66.6%	345.1	76.9%	3.8%
Romania	18.9	15.5	21.6%	64.6	12.0%	59.6	13.3%	8.3%
India	23.3	7.3	N/M	82.5	15.3%	9.9	2.2%	N/M
Other countries	8.1	7.5	9.7%	32.6	6.1%	34.0	7.6%	-3.8%
Diagnostic Services
Revenue	154.6	108.6		473.4		408.7
Inter-segment revenue	-5.0	-3.6		-14.1		-13.2
Revenue from external
customers	149.6	105.0	42.5%	459.3		395.5		16.1%
By payer:
Public	49.9	35.2	41.8%	161.0	35.1%	137.6	34.8%	17.0%
Private	99.7	69.8	42.8%	298.3	64.9%	257.9	65.2%	15.7%
Fee-For-Service (FFS)	95.4	67.3	41.8%	287.8	62.7%	250.4	63.3%	14.9%
Other services	4.3	2.5	70.1%	10.5	2.2%	7.5	1.9%	40.2%
By country:
Germany	76.6	51.2	49.7%	242.4	52.8%	196.6	49.7%	23.3%
Romania	18.7	14.6	28.5%	63.4	13.8%	59.5	15.0%	6.6%
Ukraine	26.8	18.8	42.6%	73.1	15.9%	64.8	16.4%	12.8%
Poland	12.6	9.5	31.7%	39.0	8.5%	36.4	9.2%	7.2%
Other countries	14.9	10.9	36.4%	41.4	9.0%	38.2	9.7%	8.5%

PROFIT DEVELOPMENT FOURTH QUARTER 2020

Operating profit (EBIT) was €29.9m (€10.8m) with an operating margin of 10.1% (4.7%), increased by the impact of Covid-19. The strong financial performance was a result of the resilient level of demand for Medicover's services combined with the continuing impact of cost optimisation. The contribution from Covid-19 revenue with certain facilities operating at high utilisation/occupancy has resulted in higher margins. When the virus infection rates eventually abate, these facilities will normalise their utilisation levels or return to previous service focus.

Net profit amounted to €18.8m (€6.6m), which represented a margin of 6.3% (2.9%). Net profit was impacted by a total financial result of €-6.0m (€-2.5m) of which €-3.8m (€-3.8m) was related to interest expense and commitment fees on the Group's debt and other discounted liabilities. Within the interest expense €-2.7m (€-2.1m) was related to lease liabilities. As the Group has expanded its activities, including its leased premises, the cost of interest allocated to lease liabilities has increased. Interest income on cash balances amounted to €0.0m (€0.4m). Foreign exchange losses were

€-2.2m (€0.9m) of which €-1.1m was related to Euro denominated lease liabilities due to weaker currencies, particularly for Poland.

Basic/diluted earnings per share amounted to €0.123 (€0.048).

Consolidated EBITDA was €53.1m (€33.4m), increased by 59.1%, an EBITDA margin of 17.8% (14.5%). Adjusted EBITDA was €55.7m (€34.4m), a growth of 62.0%, a margin of 18.7% (15.0%). Adjusted EBITDAaL increased to €43.8m (€23.3m), a margin of 14.7% (10.1%).

Items affecting comparability

Additional contribution from Covid-19 revenue was estimated at an average of 27.3% EBITDA margin, which increased the overall EBITDA margin by approximately 2.0pp and represented €14.3m. Adjusting for the Covid-19 revenue and profit, the underlying EBITDA margin was overall 1.3pp higher reflecting an improvement overall for the non-Covid-19 business.

In 2019, the Group recognised a share of loss of associates mainly relating to MHI of €-1.1m.

€1.3m (-) was recognised in other income/(cost) resulting from a revaluation of a financial investment. During the quarter additional shares were acquired and the investment was reclassified from other non-current financial assets to an investment in an associate in December 2020.

Acquisition related expenses were €-0.8m (€-0.4m).

EBITDA for Healthcare Services was €21.5m (€17.8m), an EBITDA margin of 14.4% (14.2%). The contribution estimated from Covid-19 services was €1.9m or 0.2pp of margin. Adjusting for the Covid-19 revenue and profit, EBITDA margin was in line with prior year despite negative Covid-19 impacts persisting. EBITDAaL was €14.9m (€12.2m), a margin of 10.0% (9.7%).

Operating profit amounted to €8.6m (€4.7m), a margin of 5.8% (3.7%).

All business units except for retail pharmacies had to mid-November recovered from the reduction in business of the second quarter and were performing well. However units more exposed to elective demand and the fitness benefits/gyms were impacted due to new restrictions imposed and concerns on Covid-19 resurgence. Retail pharmacies continue to experience weaker demand levels and fitness membership, although substantially recovered at the start of the quarter, were all closed at the end of the quarter and at the date of this report. Performance levels are ranging from:

• businesses performing as expected, near to normal levels, however general economic conditions may be weighing on growth rates, such as the employer paid healthcare business,
• businesses which are still negatively impacted observe that the mix of services or new services have compensated margins to a degree such as Pelican and Warsaw hospitals. Some patients are however still deferring treatment and dedication of facilities for Covid-19 patients, or other Covid-19 restrictions have impacted volume in the second half of the quarter, and
• higher revenue than anticipated which improved operating margins, driven by delayed demand being fulfilled or previous investments increasing supply, such as in fertility services, however demand levels impacted in the second half of the quarter due to new restrictions.

In addition, Covid-19 services such as testing and inpatient treatment have compensated for shortfalls in other areas. MHI has had 1,821 admissions for Covid-19 inpatient care, considerably down compared to prior quarter.

EBITDA for Diagnostic Services doubled to €37.4m (€18.7m), an EBITDA margin of 24.2%

(17.3%). The contribution estimated from Covid-19 services was €12.4m, or 2.2pp of margin. Adjusting for the Covid-19 revenue and profit, EBITDA margin was overall 4.7pp higher reflecting the underlying pickup in demand levels for non-Covid-19 testing. EBITDAaL was €32.2m (€13.3m), a margin of 20.8% (12.3%).

Operating profit was €27.7m (€9.4m), a margin of 17.9% (8.8%).

Demand for Covid-19 testing, both PCR and antigen, has been robust. The strongest

PROFIT DEVELOPMENT FULL YEAR 2020

Operating profit (EBIT) was €61.3m (€46.5m) with an operating margin of 6.1% (5.5%), impacted both positively and negatively by Covid-19. Within the operating profit was an impairment charge of €-5.2m (€-0.8m) for non-current assets. Underlying conservative actions to adjust the cost base as the pandemic impacted Q2 with temporary short time working hours, salary reductions and other steps dampened the immediate negative impact. Towards the end of Q2 and through the second half the return of business towards more normalised levels and increasing Covid-19 revenue supported profitability. The financial performance was supported by €3.9m related to government employment grants and assistance from commercial partners such as landlords, recognised as a reduction of cost.

Net profit amounted to €27.3m (€24.7m), which represented a margin of 2.7% (2.9%). Net profit was impacted by a total financial result of €-25.6m (€-12.3m) of which €-18.1m (€-13.7m) was related to interest expense and commitment fees on the Group's debt and other discounted liabilities. Within the interest expense €-10.2m (€-7.2m) was related to lease liabilities and €-1.2m to the release of the balance of unamortised arrangement fees due to early repayment of MHI's external debt. This debt was refinanced to make use of lower cost Group funding. Interest income on cash balances

performance of the major businesses was from the German entities, with smaller drops in volume. Clinical services in Germany have however been negatively affected, with patients deferring medical visits. The Polish business has also been active in providing Covid-19 services, funded by the public, whilst non-Covid-19 testing is only in line with prior year levels. The Romanian business has since early in the pandemic been providing public funded Covid-19 testing having the best equipped laboratory in Central Southern Europe. However supply restrictions to that market by a major supplier restricted volume in the quarter. Supply chain issues were felt in all markets but were most pronounced in Romania.

In Belarus Covid-19 PCR testing has been largely curtailed in the quarter.

Demand has remained high for Covid-19 testing in Q1 2021 and is expected to continue for some time however restrictions have had a negative impact on non-Covid-19 demand. Demand for Covid-19 genetic sequencing to monitor variants has recently picked up significantly and is expected to continue in coming months.

amounted to €0.9m (€1.8m). Foreign exchange losses were €-8.4m (€-0.4m) with €-5.5m related to Euro denominated lease liabilities mainly in Poland and Belarus.

Basic/diluted earnings per share amounted to €0.182 (€0.168).

Consolidated EBITDA was €157.5m (€120.7m), increased by 30.6%, an EBITDA margin of 15.8% (14.3%). Adjusted EBITDA was €164.1m (€125.0m), increased by 31.3%, with a margin of 16.4% (14.8%). Adjusted EBITDAaL amounted to €115.1m (€84.9m), a growth of 35.6%, a margin of 11.5% (10.1%).

Items affecting comparability

Additional contribution from Covid-19 revenue was estimated at an average of 31.8% EBITDA margin, which increased the overall EBITDA margin by approximately 1.7pp and represented €30.1m. Government grants for employment support recognised as a reduction of costs amounted to €2.4m, representing 0.2pp of margin.

A non-cash impairment charge of €-5.2m (€-0.8m) was incurred for non-current assets related to operations where profitability was less likely to be realised, particularly in a more uncertain economic outlook.

€1.3m (-) was recognised in other income/(cost) resulting from a revaluation of a financial investment. During the year, additional shares were acquired and in December 2020, the investment was reclassified from other non-current financial assets to an investment in an associate.

In 2019, the Group recognised a share of loss of associates mainly relating to MHI of €-1.9m.

Acquisition related expenses amounted to €-1.5m (€-2.4m).

EBITDA for Healthcare Services increased by 37.8% to €84.1m (€61.0m), an EBITDA margin of 15.6% (13.6%). EBITDAaL increased by 40.1% to €57.5m (€41.0m), a margin of 10.6% (9.1%). The swift actions to adjust the cost base and most of all support from staff in combination with support from governments and commercial partners such as landlords enabled management of the downturn in Q2 and the return of demand levels from the end of Q2. Profitability was supported by the contribution from Covid-19 services particularly in MHI. Government grants for employment were €0.8m recognised as a reduction in costs.

Operating profit amounted to €28.8m (€20.1m), an increase of 43.2%, a margin of 5.3% (4.5%), impacted by an impairment charge of €-2.9m (€-0.8m).

EBITDA for Diagnostic Services increased by 18.5% to €89.8m (€75.7m), an EBITDA margin of 19.0% (18.5%). EBITDAaL increased by 20.9% to €67.8m (€56.0m), a margin of 14.3% (13.7%). This reflected the steep fall in volume from mid-March through into May and resulting loss of contribution offset by the large pickup in Covid-19 testing and subsequent return to a more normalised volume of non-Covid-19 demand. Government support and assistance from commercial partners such as landlords and most of all support from staff helped to mitigate the initial negative impact. Covid-19 testing has been particularly strong in the second half of the year. Government grants for employment were €1.6m recognised as a reduction in costs.

Operating profit followed a similar trend with an increase of 17.0% to €50.8m (€43.3m), a margin of 10.7% (10.6%), impacted by an impairment charge of €-2.3m (-).

KEY FINANCIAL DATA

Medicover, €m	Oct-Dec 2020	Oct-Dec 2019	Growth	FY 2020	FY 2019	Growth
Revenue	297.7	229.7	30%	997.8	844.4	18%
Operating profit (EBIT)	29.9	10.8	178%	61.3	46.5	32%
Operating profit margin	10.1%	4.7%		6.1%	5.5%
Net profit	18.8	6.6	185%	27.3	24.7	11%
Net profit margin	6.3%	2.9%		2.7%	2.9%
Basic/diluted earnings per share, €	0.123	0.048	156%	0.182	0.168	8%
EBITDA	53.1	33.4	59%	157.5	120.7	31%
EBITDA margin	17.8%	14.5%		15.8%	14.3%
Adjusted EBITDA	55.7	34.4	62%	164.1	125.0	31%
Adjusted EBITDA margin	18.7%	15.0%		16.4%	14.8%
EBITDAaL	41.2	22.3	85%	108.5	80.6	35%
EBITDAaL margin	13.9%	9.7%		10.9%	9.5%
Adjusted EBITDAaL	43.8	23.3	88%	115.1	84.9	36%
Adjusted EBITDAaL margin	14.7%	10.1%		11.5%	10.1%
EBITA	32.7	13.9	135%	76.9	53.7	43%
EBITA margin	11.0%	6.0%		7.7%	6.4%
Adjusted EBITA	35.3	14.9	137%	83.5	58.0	44%
Adjusted EBITA margin	11.9%	6.5%		8.4%	6.9%
	Oct-Dec	Oct-Dec
Healthcare Services, €m	2020	2019	Growth	FY 2020	FY 2019	Growth
Revenue	149.0	124.8	19%	539.7	449.3	20%
Operating profit (EBIT)	8.6	4.7	86%	28.8	20.1	43%
Operating profit margin	5.8%	3.7%		5.3%	4.5%
EBITDA	21.5	17.8	21%	84.1	61.0	38%
EBITDA margin	14.4%	14.2%		15.6%	13.6%
EBITDAaL	14.9	12.2	23%	57.5	41.0	40%
EBITDAaL margin	10.0%	9.7%		10.6%	9.1%
EBITA	11.0	7.0	56%	39.8	25.5	56%
EBITA margin	7.3%	5.6%		7.4%	5.7%
Members (period end) (000's)	1,353	1,300	4%	1,353	1,300	4%

Diagnostic Services, €m	Oct-Dec 2020	Oct-Dec 2019	Growth	FY 2020	FY 2019	Growth
Revenue	154.6	108.6	42%	473.4	408.7	16%
Operating profit (EBIT)	27.7	9.4	189%	50.8	43.3	17%
Operating profit margin	17.9%	8.8%		10.7%	10.6%
EBITDA	37.4	18.7	99%	89.8	75.7	19%
EBITDA margin	24.2%	17.3%		19.0%	18.5%
EBITDAaL	32.2	13.3	140%	67.8	56.0	21%
EBITDAaL margin	20.8%	12.3%		14.3%	13.7%
EBITA	28.1	10.2	173%	55.4	45.1	23%
EBITA margin	18.2%	9.5%		11.7%	11.0%
Lab tests (period volume) (m)	29.1	26.8	8%	103.9	106.7	-3%

COVID-19

The following table presents the estimated financial impact of Covid-19 revenue and EBITDA. The Group's negative impact on revenue and EBITDA due to Covid-19 is not included below, refer to revenue and profit sections for additional information.

€m	Q4 2020	Q3 2020	Q2 2020	Q1 2020	FY 2020
Covid-19 revenue
Healthcare Services	11.2	16.0	1.1	0.0	28.3
Diagnostic Services	41.2	16.0	7.9	1.0	66.1
Total	52.4	32.0	9.0	1.0	94.4
EBITDA
Healthcare Services	1.9	6.4	0.6	0.0	8.9
Diagnostic Services	12.4	6.1	2.3	0.4	21.2
Total	14.3	12.5	2.9	0.4	30.1
EBITDA margin
Healthcare Services	17.0%	40.1%	48.0%	-	31.3%
Diagnostic Services	30.1%	38.2%	29.7%	32.0%	32.1%
Total	27.3%	39.2%	31.9%	32.0%	31.8%

The pandemic that has swept the world over 2020 has led to unprecedented restrictions and changes to normal life in. From the initial confinements in the spring to the relative normalisation over the summer and early autumn to the re-confinement and new restrictions at the end of the year. The second wave in Europe has seen less harsh restrictions, with an awareness to try to maintain economic activity, however European infection rates continue to be high.

Although vaccines are now being administered it is still early in the campaign and restrictions are likely to continue for some time. There are good expectations that towards the summer the level of vaccinations in the community will be large enough to enable removal of restrictions and return to a normalised situation. New concerns are however rising as variants of the virus start to circulate, which may be more contagious or even have a certain level of resistance to the vaccines.

As expected, there is a considerable degree of uncertainty as to how long the current restrictions will be applied and how effective they will be. Further or longer restrictions may be required which could have an adverse impact upon the Group's services and demand.

Healthcare demand has been impacted with patients deferring to seek diagnosis and treatment for fear of being infected. This is particularly so for the more vulnerable sections of the population.

Medicover has been positioned to assist with testing for the virus and treating patients in its facilities.

Medicover's staff has been highly supportive of patients and the Group throughout this crisis. They have continued to work on frontline positions, whilst being concerned for themselves and families.

In June, Medicover completed a directed share issue raising net proceeds of €141.9m and renegotiated and increased its indebtedness covenant levels for its €220m revolving credit facility to ensure increased financial flexibility. This has positioned the Group to pass through the crisis so that Medicover can continue to invest and support its patients and members.

There is a high degree of likelihood that economic weakness will persist in 2021 despite government stimulus and support measures, however the strong commitment of institutions to support demand is reassuring.

Medicover has shown strong ability to operate and support its customers over the last three quarters and it will continue going forward. This extends to supporting health services and the public. Medicover has invested to increase its ability to provide Covid-19 testing and is currently expanding its sequencing capabilities for tracking Covid-19 variants.

CASH FLOW

Fourth quarter

Cash generated from operations before working capital changes and tax payments amounted to €56.4m (€34.8m), being 106.1% of EBITDA (104.2%). Net working capital increased by €12.6m (€6.4m) reflecting increased receivables, higher inventories and an increase in trade and other payables. Income tax paid was €3.4m (€3.4m). Net cash from operating activities was a strong €40.4m (€25.0m).

Investments in property, plant and equipment and intangible assets amounted to €31.4m (€25.2m) with approximately 61% being growth capital investment and 39% being maintenance investment. Direct Covid-19 related investments amounted to €4.4m. The expansion of operational units in MHI was the largest area of investment in the quarter with €13.6m, in premises fit out and equipment. Investments during the quarter picked up as demand has recovered and the balance sheet has been considerably strengthened. Cash flow from acquisitions of subsidiaries and associates amounted to €10.2m (€9.9m) relating to payments for earlier closed transactions, several dental clinics and a gym chain. Interest received on cash balances was €0.1m (€0.3m).

Net loans repaid amounted to €6.5m (net loans drawn €8.4m). Leases repaid were €7.7m (€8.2m). Interest paid amounted to €4.3m (€4.3m), of which €2.7m (€2.1m) related to lease liabilities.

Cash and cash equivalents decreased by €17.4m to €46.7m.

Full year

Cash generated from operations before working capital changes and tax payments amounted to

€167.7m (€124.3m), being 106.5% of EBITDA (103.0%). Net working capital increased by €0.7m (€23.5m) reflecting increased receivables, higher inventories and an increase in trade and other payables. Income tax paid was €11.0m (€13.5m). Net cash from operating activities was €156.0m (€87.3m).

Investments in property, plant and equipment and intangible assets amounted to €72.5m (€63.2m) with approximately 61% being growth capital investment and 39% being maintenance investment. Investments were continuing at a full pace in the first quarter with the completion of the Pelican new wing and greenfield expansion of dental clinics and gyms. Due to Covid-19, investments in the second quarter were curtailed, however resumed in the third quarter and continued into the last quarter as demand has recovered and new capital has been raised. Direct Covid-19 related investments amounted to €5.0m. Cash flow from acquisitions of subsidiaries and associates amounted to €13.6m (€82.7m) relating to payments for earlier closed transactions and business combinations for the year. Interest received on cash balances was €0.9m (€1.7m).

Net proceeds from the directed share issue in June amounted to €141.9m. The Group acquired an additional 1.6% interest in the share capital of MHI for €1.2m. Total ownership in MHI as at 31 December 2020 was 56.0% (54.4%). Net loans repaid amounted to €106.4m (net loans drawn €97.4m). Leases repaid were €31.4m (€29.9m). Interest paid amounted to €15.8m (€14.0m), of which €10.2m (€7.2m) related to lease liabilities reflecting the increase in the scale of the business.

Cash and cash equivalents increased by €15.6m to €46.7m.

FINANCIAL POSITION

Consolidated equity as at 31 December 2020 amounted to €483.5m (€359.7m). The major component of the increase came from a directed share issue of 15 million new class B shares resulting in an increase in share capital and share premium in June with net proceeds of €141.9m. The share issue strengthened the balance sheet and increased the financial flexibility to further support the Group's growth strategy. The increase in equity was reduced by a negative movement of €40.5m on translation reserves with 88% relating to Poland, Ukraine and India as the currencies weakened and the euro which has strengthened

against the dollar also contributing to the movement.

Inventories amounted to €53.0m (€37.1m) at yearend, approximately €11.2m of the increase is related to Covid-19 services and contracts.

Loans payable amounted to €167.9m (€275.3m) and lease liabilities to €199.5m (€176.2m). The total financial debt was €367.4m (€451.5m). Loans payable net of cash and liquid short-term investments amounted to €81.1m (€240.5m) reflecting the strong operating cash flows and the

capital increase. The ratio of loans payable net of cash and liquid short-term investments to adjusted EBITDAaL for the prior twelve months was 0.7x (2.8x level at year-end 2019).

Lease liabilities increased by €23.3m over the year reflecting the expansion of facilities leased by the

TAX

The Group has recognised a tax charge of €-10.0m (€-8.6m) for the year. Income tax paid was €11.0m (€13.5m). The effective tax rate for the year is

Group in Poland and in India. The Group has undrawn committed credit facilities, liquid shortterm investments and cash and cash equivalents of over €307m at the end of the quarter and is well positioned to support future organic and acquisition growth.

26.7% (25.9%), a slight increase due to an increase in weighting of profit to German entities, with a higher effective tax rate.

PARENT COMPANY

There was no significant revenue. The profit for the quarter amounted to €8.8m (€9.7m) impacted by Group contributions and dividends received of €11.5m (€12.0m) from subsidiaries. The parent company's assets consist of investments in

subsidiaries. The net proceeds of the directed share issue in June 2020 have increased equity by €141.9m. Equity as at 31 December 2020 was €611.9m (€463.1m).

DIVIDEND

The board of directors proposes to the annual general meeting that a dividend of €0.07 per share is distributed for the financial year 2020. The decision is subject to the shareholders' approval at the annual general meeting on 29 April 2021.

The proposed dividend is 40.2% of the net profit attributable to shareholders, in line with the dividend policy, corresponding to a total of €10.4m. If the proposal is accepted, the expected record date for the dividend will be 3 May and the dividend is expected to be paid out by Euroclear from 6 May.

RISK FACTORS

Operating risks faced by Medicover include risk relating to access to sufficient qualified employees and the related payroll expense to fulfil growth and customer service expectations, risk relating to medical quality or service deficiencies and medical malpractice. External risks include risk relating to a pandemic, the regulatory environment and the general economy, political risk and change in public government funding policies. Medicover is also exposed to various financial risks, such as credit risk, interest rate risk, liquidity risk and foreign currency risk. Financial risks are managed by the central finance department. These risks are further described in the 'Risk and risk management' section of the management report in the annual report 2019 (pages 45-48).

Risk and uncertainties for the reporting period

There is a considerable degree of uncertainty as to how long the current restrictions related to the

Covid-19 pandemic will be applied and how effective they will be. Further or longer restrictions may be required which may lead to any of the following implications:

• a more severe reduction in demand for elective services within the Group,
• an extended period of close-down of businesses,
• customers having financial issues leading to difficulties and/or delays in making payments, termination or non-renewal of agreements,
• impairment of goodwill and other assets, and
• further disruptions in the financial market.

Any of these factors, individually or in aggregate, could have a negative impact on the Group's operating performance, future development and growth expectations.

The board of directors and CEO declare that the year-end report for January-December 2020 gives a fair overview of the parent company´s and Group´s operations, financial position and results of operations and describes significant risks and uncertainties facing the parent company and companies included in the Group.

Stockholm on 12 February 2021

Fredrik Stenmo Chairman of the board

Peder af Jochnick Robert af Jochnick Arno Bohn Board member Board member Board member

Board member Board member Board member

Sonali Chandmal Michael Flemming Margareta Nordenvall

Fredrik Rågmark CEO and board member

This report has not been subject to review by the Company's auditor.

This is information that Medicover AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication through the agency of the contact person set out below at 7.45 (CET) on 12 February 2021. This year-end report and other information about Medicover is available at medicover.com.

Financial Calendar

Annual report week 13 2021 Interim report January-March 2021 29 April 2021 Annual general meeting 29 April 2021 Interim report April-June 2021 23 July 2021 Interim report July-September 2021 3 November 2021

For further information, please contact:

Hanna Bjellquist, Head of Investor Relations Phone: +46 70 303 32 72 E-mail: hanna.bjellquist@medicover.com

Conference call: A conference call for analysts and investors will be held today at 09.30 CET. To listen in please register here. To ask questions please dial in and use code: 4585621 SE: 08-566 184 67 DE: +49 (0) 305 200 2085 UK: +44 (0) 2071 928 338 US: +1 646 741 3167

Address

Org nr: 559073-9487 Medicover AB (publ) P.O. Box 5283, SE-102 46 Stockholm Visiting address: Riddargatan 12A, SE-114 35 Stockholm, Sweden Phone: +46 8-400 17 600

This report may contain certain forward-looking statements and opinions. Forward-looking statements are statements that do not relate to historical facts and events and such statements and opinions pertaining to the future. Forward-looking statements are based on current estimates and assumptions made according to the best of Medicover's knowledge. Such forward-looking statements are subject to risks, uncertainties, and other factors that could cause the actual results, including Medicover's cash flow, financial condition and results of operations, to differ materially from the results, or fail to meet expectations expressly or implicitly assumed or described in those statements or to turn out to be less favourable than the results expressly or implicitly assumed or described in those statements.

In light of the risks, uncertainties and assumptions associated with forward-looking statements, it is possible that the future events mentioned in this presentation may not occur. Actual results, performance or events may differ materially from those in such statements due to, without limitation, changes in general economic conditions, in particular economic conditions in the markets on which Medicover operates, changes affecting interest rate levels, changes affecting currency exchange rates, changes in competition levels, changes in laws and regulations, and occurrence of accidents or environmental damages.

The information, opinions and forward-looking statements contained in this announcement speak only as at its date and are subject to change without notice.

CONDENSED FINANCIAL STATEMENTS

CONSOLIDATED INCOME STATEMENT

Note	€m	Oct-Dec 2020	Oct-Dec 2019	Jan-Dec 2020	Jan-Dec 2019
	Revenue	297.7	229.7	997.8	844.4
	Operating expenses
	Medical provision costs	-218.1	-175.9	-734.3	-637.6
	Gross profit	79.6	53.8	263.5	206.8
	Distribution, selling and marketing costs	-12.7	-13.4	-43.3	-45.0
	Administrative costs	-37.0	-29.6	-158.9	-115.3
	Operating profit (EBIT)	29.9	10.8	61.3	46.5
	Other income/(costs)	1.5	1.2	1.5	1.0
	Interest income	0.0	0.4	0.9	1.8
	Interest expense	-3.8	-3.8	-18.1	-13.7
	Other financial income/(expense)	-2.2	0.9	-8.4	-0.4
	Total financial result	-6.0	-2.5	-25.6	-12.3
	Share of profit/(loss) of associates	0.0	-1.1	0.1	-1.9
	Profit before income tax	25.4	8.4	37.3	33.3
	Income tax	-6.6	-1.8	-10.0	-8.6
	Profit for the period	18.8	6.6	27.3	24.7
	Profit attributable to:
	Owners of the parent	18.2	6.5	25.8	22.5
	Non-controlling interests	0.6	0.1	1.5	2.2
	Profit for the period	18.8	6.6	27.3	24.7
	Earnings per share attributable to owners of the parent:
	Basic/diluted, €	0.123	0.048	0.182	0.168

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

Note	€m	Oct-Dec 2020	Oct-Dec 2019	Jan-Dec 2020	Jan-Dec 2019
	Profit for the period	18.8	6.6	27.3	24.7
	Other comprehensive income/(loss): Items that may be reclassified subsequently to income statement:
	Exchange differences on translating foreign operations	-9.2	6.5	-40.5	7.8
	Income tax relating to these items	0.0	-0.1	0.4	-0.6
	Other comprehensive income/(loss) for
	the period, net of tax	-9.2	6.4	-40.1	7.2
	Total comprehensive income/(loss) for the period	9.6	13.0	-12.8	31.9
	Total comprehensive income/(loss) attributable to:
	Owners of the parent	10.2	13.2	-9.2	30.0
	Non-controlling interests	-0.6	-0.2	-3.6	1.9
	Total comprehensive income/(loss) for the period	9.6	13.0	-12.8	31.9

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

Note	€m	31 Dec 2020	31 Dec 2019
	ASSETS
	Non-current assets
	Goodwill	289.2	296.7
	Other intangible assets	64.6	74.6
	Property, plant and equipment	257.9	252.7
	Right-of-use assets	180.4	166.0
	Deferred tax assets	12.1	9.1
	Investment in associates	7.6	0.7
	Other financial assets	9.9	7.5
	Total non-current assets	821.7	807.3
	Current assets
	Inventories	53.0	37.1
	Other financial assets	0.0	1.6
	Trade and other receivables	149.4	142.3
	Short-term investments	40.1	-
	Cash and cash equivalents	46.7	34.8
	Total current assets	289.2	215.8
	Total assets	1,110.9	1,023.1
	SHAREHOLDERS' EQUITY
	Equity attributable to owners of the parent	448.0	317.4
	Non-controlling interests	35.5	42.3
	Total shareholders' equity	483.5	359.7
	LIABILITIES
	Non–current liabilities
	Loans payable	152.8	163.8
	Lease liabilities	165.1	142.0
	Deferred tax liabilities	30.0	31.1
	Provisions	1.9	2.2
	Other financial liabilities	45.9	38.9
	Other liabilities	3.4	3.7
	Total non-current liabilities	399.1	381.7
	Current liabilities
	Loans payable	15.1	111.5
	Lease liabilities	34.4	34.2
	Unearned premiums/deferred revenue	14.8	11.4
	Corporate tax payable	7.8	4.8
	Other financial liabilities	6.8	5.2
	Trade and other payables	149.4	114.6
	Total current liabilities	228.3	281.7
	Total liabilities	627.4	663.4
	Total shareholders' equity and liabilities	1,110.9	1,023.1

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Non-controlling attributable to Non Share Treasury Share Retained interests put Other Translation owners of controlling Total capital shares premium earnings option reserve reserves reserve the parent interests equity 27.1 -0.4 319.7 4.8 -14.9 2.6 -27.7 311.2 4.4 315.6 for the period - - - 22.5 - - - 22.5 2.2 24.7 comprehensive income - - - - - - 7.5 7.5 -0.3 7.2 - - - 22.5 - - 7.5 30.0 1.9 31.9 Changes in interests in subsidiaries - - - -2.3 - - - -2.3 - -2.3 Changes in put option liquidity obligation with non controlling interests - - - - -23.2 - - -23.2 -2.4 -25.6 Non-controlling interests on business combinations - - - - - - - - 38.4 38.4 Share-based payments - - - - - 1.7 - 1.7 - 1.7 Total transactions with owners in their capacity as owners - - - -2.3 -23.2 1.7 - -23.8 36.0 12.2 Closing balance as at 31 December 2019 27.1 -0.4 319.7 25.0 -38.1 4.3 -20.2 317.4 42.3 359.7 27.1 -0.4 319.7 25.0 -38.1 4.3 -20.2 317.4 42.3 359.7 for the period - - - 25.8 - - - 25.8 1.5 27.3 comprehensive income - - - - - -0.1 -34.9 -35.0 -5.1 -40.1 - - - 25.8 - -0.1 -34.9 -9.2 -3.6 -12.8 Issue of ordinary shares 3.0 - 140.0 - - - - 143.0 - 143.0 Transaction costs - - -1.1 - - - - -1.1 - -1.1 Changes in interests in subsidiaries - - - 0.1 - - - 0.1 -0.3 -0.2 Changes in put option liquidity obligation with non controlling interests - - - - -7.0 - - -7.0 -2.9 -9.9 Share-based payments - - - - - 4.7 - 4.7 - 4.7 Issue of treasury shares to employees - 0.0 0.1 - - - - 0.1 - 0.1 Total transactions with owners in their capacity as owners 3.0 0.0 139.0 0.1 -7.0 4.7 - 139.8 -3.2 136.6 Closing balance as at 31 December 2020 30.1 -0.4 458.7 50.9 -45.1 8.9 -55.1 448.0 35.5 483.5					Total equity
	€m
	Opening balance as at 1 January 2019
	Profit
	Other
	Total comprehensive income for the period
	Transactions with owners in their capacity as owners:
	Opening balance as at 1 January 2020
	Profit
	Other
	Total comprehensive income for the period
	Transactions with owners in their capacity as owners:

CONSOLIDATED CASH FLOW STATEMENT

		Oct-Dec	Oct-Dec	Jan-Dec	Jan-Dec
Note	€m	2020	2019	2020	2019
	Profit before income tax	25.4	8.4	37.3	33.3
	Adjustments for:
	Depreciation, amortisation and impairment	23.2	22.6	96.2	74.2
	Share-based payments	1.7	0.5	4.7	1.7
	Net interest expense	3.8	3.4	17.2	11.9
	Unrealised foreign exchange (gain)/loss	1.4	-1.0	7.0	-1.1
	Other non-cash transactions	0.9	0.9	5.3	4.3
	Cash generated from operations before working
	capital changes and tax payments	56.4	34.8	167.7	124.3
	Changes in operating assets and liabilities: Increase in inventories	-16.2	-0.7	-22.0	-1.7
	Increase in trade and other receivables	-21.6	-2.6	-28.4	-23.4
	Increase/(decrease) in trade and other payables	25.2	-3.1	49.7	1.6
	Cash generated from operations before tax
	payments	43.8	28.4	167.0	100.8
	Income tax paid	-3.4	-3.4	-11.0	-13.5
	Net cash from operating activities	40.4	25.0	156.0	87.3
	Investing activities:
	Payment for acquisition of intangible assets and
	property, plant and equipment	-31.4	-25.2	-72.5	-63.2
	Proceeds from disposal of intangible assets and property, plant and equipment	0.0	0.1	0.9	0.3
	Payment for acquiring interest in associates	-1.4	-	-1.4	-
	Dividends received from associates	0.2	-	0.3	-
	Payment for other financial assets	-3.1	-	-3.1	-
	Payment for acquisition of subsidiaries, net of cash
	acquired	-8.8	-9.9	-12.2	-82.7
	Proceeds from disposal of subsidiaries, net of cash sold	-	0.1	-	0.1
	Repayment of loans granted	0.1	1.1	0.1	2.0
	Payment of loans granted	0.0	-	-0.2	-
	Payment for short-term investments	-	-	-50.0	-
	Proceeds from short-term investments	5.0	-	10.9	-
	Interest received	0.1	0.3	0.9	1.7
	Net cash used in investing activities	-39.3	-33.5	-126.3	-141.8
	Financing activities:
	Issue of shares, net of transaction costs	-	-	141.9	-
	Acquisition of non-controlling interests	-	-	-1.2	-2.7
	Repayment of loans	-25.8	-219.5	-287.8	-479.9
	Proceeds from loans received	19.3	227.9	181.4	577.3
	Repayment of leases	-7.7	-8.2	-31.4	-29.9
	Interest paid	-4.3	-4.3	-15.8	-14.0
	Distribution to non-controlling interests	-	-0.9	-1.2	-2.0
	Net cash from/(used in) financing activities	-18.5	-5.0	-14.1	48.8
	Total cash flow	-17.4	-13.5	15.6	-5.7
	Cash and cash equivalents
	Cash balance as at beginning of the period	63.3	47.1	34.8	38.4
	Net effects of exchange gain/(loss) on cash balances	0.8	1.2	-3.7	2.1
	Cash balance as at end of the period	46.7	34.8	46.7	34.8
	Increase/(decrease) in cash and cash equivalents	-17.4	-13.5	15.6	-5.7

PARENT COMPANY INCOME STATEMENT

Note	€m	Oct-Dec 2020	Oct-Dec 2019	Jan-Dec 2020	Jan-Dec 2019
	Revenue	0.2	0.3	0.7	1.0
	Operating expenses	-2.9	-2.4	-9.7	-8.2
	Operating loss Income from participation in Group companies	-2.7 11.5	-2.1 12.0	-9.0 11.5	-7.2 12.0
	Interest income from Group companies	-	0.0	-	0.1
	Interest expense	0.0	-0.2	-0.4	-0.5
	Profit before income tax	8.8	9.7	2.1	4.4
	Income tax	-	-	-	-
	Profit for the period	8.8	9.7	2.1	4.4

As the profit for the period corresponds with the amount in total comprehensive income, no separate statement of comprehensive income is presented.

PARENT COMPANY BALANCE SHEET

Note	€m	31 Dec 2020	31 Dec 2019
	Property, plant and equipment	0.0	0.0
	Investments in subsidiaries	434.8	434.8
	Total non-current assets	434.8	434.8
	Current receivables	179.3	109.7
	Cash and bank	-	-
	Total current assets	179.3	109.7
	Total assets	614.1	544.5
	Restricted equity	30.1	27.1
	Non-restricted equity	581.8	436.0
	Total equity	611.9	463.1
	Current liabilities	2.2	81.4
	Total liabilities	2.2	81.4
	Total equity and liabilities	614.1	544.5

NOTES

1. Basis of preparation and accounting policies

Basis of preparation

Medicover AB (publ) ("the Company") together with its subsidiaries are referred to as "the Group". Medicover AB (publ) is a company domiciled in Sweden, with its head office in Stockholm. The reporting and functional currency of the Company is the Euro.

This year-end report has been prepared in accordance with IAS 34 Interim Financial Reporting and should be read together with the Group's consolidated financial statements for the year ended 31 December 2019.

The report does not include all disclosures that would otherwise be required in a complete set of financial statements.

Information on pages 1-17 is an integral part of this report.

Accounting policies, use of estimates and judgements

The Group applies the International Financial Reporting Standards (IFRS) as adopted by the European Union. The accounting policies and methods of computation applied in this year-end report are the same as those applied by the Group in its consolidated financial statements for the year ended 31 December 2019 except for an early application of the amendment to IFRS 16 Leases regarding Covid-19 Rent related concessions. The amendment allows an entity, if certain criteria are met, to recognise the change in lease payments from a rent concession, occurring as a direct consequence of Covid-19, in the income statement. The Group has applied this amendment and recognised reduced rental expenses of €1.5m in the income statement 2020. No other amendments to existing standards that became applicable as from 1 January 2020 or that will become applicable as from 1 January 2021 have had/will have a

material impact on the consolidated financial statements or accounting policies when applied for the first time.

In December 2019, the Group obtained control over MHI. The purchase price allocation was completed in Q4 2020, this resulted in an additional deferred tax liability of €3.6m and goodwill of €3.6m due to timing differences relating to property, plant and equipment. In this year-end report, the statement of financial position as at 31 December 2019 has been restated for these amounts.

In the interim report for January-September 2020, the total cash balance at end of the period included €45.0m of liquid short-term investments. In this year-end report 2020, these are classified as shortterm investments.

The preparation of interim reports requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Group's accounting policies. Refer to the Group's consolidated financial statements 2019 for further information on the use of estimates and judgements. As at 31 December 2020, the effects of Covid-19 have been considered in estimates of expected credit loss assessment attributable to trade receivables, goodwill impairment testing and fair value measurement of financial instruments (level 3).

The parent company applies the Swedish Annual Accounts Act and the Swedish Financial Reporting Board's Recommendation RFR 2 Accounting for Legal Entities.

Alternative performance measures (APMs) are presented in this year-end report since these are considered as important supplemental measures of the Group's performance. For definition and reconciliation of APMs, refer to www.medicover.com/financial-information.

2. Segment information

		Oct-Dec	2020
€m	Healthcare Services	Diagnostic Services	Central/ other	Group total	Healthcare Services	Diagnostic Services	Central/ other	Group total
Revenue	149.0	154.6	0.2		124.8	108.6	0.1
Inter-segment revenue	-1.1	-5.0	0.0		-0.2	-3.6	0.0
Revenue from external customers	147.9	149.6	0.2	297.7	124.6	105.0	0.1	229.7
By payer:
Private	132.6	99.7	0.2	232.5	111.9	69.8	0.1	181.8
Public	15.3	49.9	-	65.2	12.7	35.2	-	47.9
By country:
Poland	97.6	12.6	0.1	110.3	94.3	9.5	0.0	103.8
Germany	-	76.6	-	76.6	-	51.2	-	51.2
Romania	18.9	18.7	0.0	37.6	15.5	14.6	0.0	30.1
Ukraine	2.0	26.8	-	28.8	1.0	18.8	-	19.8
India	23.3	-	-	23.3	7.3	-	-	7.3
Other countries	6.1	14.9	0.1	21.1	6.5	10.9	0.1	17.5
Operating profit	8.6	27.7	-6.4	29.9	4.7	9.4	-3.3	10.8
Margin	5.8%	17.9%		10.1%	3.7%	8.8%		4.7%
Depreciation, amortisation and impairment	12.9	9.7	0.6	23.2	13.1	9.3	0.2	22.6
EBITDA	21.5	37.4	-5.8	53.1	17.8	18.7	-3.1	33.4
Margin	14.4%	24.2%		17.8%	14.2%	17.3%		14.5%
Right-of-use depreciation/impairment	-4.7	-4.4	-0.1	-9.2	-4.3	-4.6	-0.1	-9.0
Interests on lease liabilities	-1.9	-0.8	0.0	-2.7	-1.3	-0.8	0.0	-2.1
Segment result: EBITDAaL	14.9	32.2	-5.9	41.2	12.2	13.3	-3.2	22.3
Margin	10.0%	20.8%		13.9%	9.7%	12.3%		9.7%
Other income/(costs)				1.5				1.2
Net interest expense				-3.8				-3.4
Other financial income/(expense)				-2.2				0.9
Share of loss of associates				0.0				-1.1
Income tax				-6.6				-1.8
Profit for the period				18.8				6.6

		Jan-Dec	2020
€m	Healthcare Services	Diagnostic Services	Central/ other	Group total	Healthcare Services	Diagnostic Services	Central/ other	Group total
Revenue	539.7	473.4	0.7		449.3	408.7	0.4
Inter-segment revenue	-1.6	-14.1	-0.3		-0.7	-13.2	-0.1
Revenue from external customers	538.1	459.3	0.4	997.8	448.6	395.5	0.3	844.4
By payer:
Private	482.3	298.3	0.4	781.0	408.6	257.9	0.3	666.8
Public	55.8	161.0	-	216.8	40.0	137.6	-	177.6
By country:
Poland	358.4	39.0	0.1	397.5	345.1	36.4	0.0	381.5
Germany	-	242.4	-	242.4	-	196.6	-	196.6
Romania	64.6	63.4	0.0	128.0	59.6	59.5	0.0	119.1
Ukraine	7.6	73.1	-	80.7	8.2	64.8	-	73.0
India	82.5	-	-	82.5	9.9	-	-	9.9
Other countries	25.0	41.4	0.3	66.7	25.8	38.2	0.3	64.3
Operating profit	28.8	50.8	-18.3	61.3	20.1	43.3	-16.9	46.5
Margin	5.3%	10.7%		6.1%	4.5%	10.6%		5.5%
Depreciation, amortisation and impairment	55.3	39.0	1.9	96.2	40.9	32.4	0.9	74.2
EBITDA	84.1	89.8	-16.4	157.5	61.0	75.7	-16.0	120.7
Margin	15.6%	19.0%		15.8%	13.6%	18.5%		14.3%
Right-of-use depreciation/impairment	-19.6	-18.8	-0.4	-38.8	-15.8	-16.7	-0.4	-32.9
Interests on lease	-7.0	-3.2	0.0	-10.2	-4.2	-3.0	0.0	-7.2
Segment result: EBITDAaL	57.5	67.8	-16.8	108.5	41.0	56.0	-16.4	80.6
Margin	10.6%	14.3%		10.9%	9.1%	13.7%		9.5%
Other income/(costs)				1.5				1.0
Net interest expense				-17.2				-11.9
Other financial income/(expense)				-8.4				-0.4
Share of profit/(loss) of associates				0.1				-1.9
Income tax				-10.0				-8.6
Profit for the period				27.3				24.7

3. Share capital

Share capital as at 31 December 2020 was €30.1m (€27.1m) and corresponded to the following shares:

	Class A shares	Class B shares	Class C* shares	Total
1 January 2019	79,204,796	54,130,399	2,400,000	135,735,195
Conversion of class A to class B shares	-433,365	433,365
31 December 2019	78,771,431	54,563,764	2,400,000	135,735,195
Issue of shares		15,000,000		15,000,000
Conversion of class C to class B shares		15,356	-15,356
Conversion of class A to class B shares	-219,550	219,550
31 December 2020	78,551,881	69,798,670	2,384,644	150,735,195

* held by the Company as treasury shares.

In June 2020, the board of directors has, based on the authorisation granted by the annual general meeting on 30 April 2020, resolved on a directed share issue of 15 million new class B shares at a subscription price of SEK 100 per share. This resulted in an increase in share capital of €3.0m and in share premium of €138.9m, net of transaction costs.

The quota value was €0.2 (€0.2) per share. Celox Holding AB owned 47,157,365 (47,157,365) shares and 55.0% (55.8%) of the voting rights.

The number of shares used to calculate the basic and diluted earnings per share was 148,350,551 (133,335,195) for the quarter and 141,748,414 (133,335,195) for the year.

4. Business combinations

€m	2020
Cash and cash equivalents	0.2
Accounts receivable and inventories	0.9
Property, plant and equipment	4.7
Right-of-use assets	6.5
Goodwill	9.2
Other intangible assets	2.1
Deferred tax	0.5
Lease liabilities
Accounts payable
Other payable	-0.1
Total purchase price	15.1
Less: cash and cash equivalents acquired	-0.2
Deferred and contingent consideration payable (discounted)	-5.3
Payment related to prior year's acquisitions
Release from escrow account
Total cash flow for acquisitions of subsidiaries net of cash
acquired	12.2

During 2020, the Group has acquired three dental businesses in Poland, an endocrinology clinic in Germany and 100% of the voting shares in Fitness World Sp. z o.o., a gym operator in Poland. None of the acquisitions are individually significant. Goodwill which amounted to €9.2m represents knowledge of transferred professionals and expected synergies with existing operations. Goodwill is deductible for tax purposes. Contingent consideration has been recognised and capped as part of the purchase price based on future

performance. Included in the consolidated income statement 2020 is revenue of €1.1m and net result of €0.0m related to the acquisitions. If these had been acquired on 1 January 2020, the Group's revenue would have been approximately €7.5m higher and net profit would have been approximately €0.1m lower. The purchase price allocations are preliminary and subject to change in the 12 months from the acquisition date.

5. Related party transactions

The Group has transactions with non-controlling interests in MHI. The purchase of material and services amounted to €-4.4m (€-1.5m) for the

quarter and to €-17.1m (€-1.5m) for the year. Trade payables were €7.2m (€6.4m) as at 31 December.

6. Financial assets and liabilities

		31 Dec 2020			31 Dec 2019
		Non			Non
Note	€m	current	Current	Total	current	Current	Total
	Financial assets at fair value through profit or loss
	Short-term investments	-	40.1	40.1	-	-	-
	Foreign currency swaps	-	-	-	-	1.5	1.5
a)	Other financial assets	3.2	-	3.2	2.8	-	2.8
	Total	3.2	40.1	43.3	2.8	1.5	4.3
	Financial assets at amortised cost
	Other financial assets	6.7	0.0	6.7	4.7	1.6	6.3
	Trade and other receivables1)	-	129.3	129.3	-	124.7	124.7
	Total	6.7	129.3	136.0	4.7	126.3	131.0
	Cash and cash equivalents	-	46.7	46.7	-	34.8	34.8
	Total financial assets	9.9	216.1	226.0	7.5	162.6	170.1
	Financial liabilities at fair value through profit or loss
	Foreign currency swaps	-	0.3	0.3	-	-	-
b)	Contingent consideration payable2)	11.5	7.0	18.5	10.4	4.1	14.5
	Total Put option liquidity obligations with non-controlling interests (with	11.5	7.3	18.8	10.4	4.1	14.5
c)	movement through equity)	45.9	-	45.9	38.9	-	38.9
	Total financial liabilities at fair
	value	57.4	7.3	64.7	49.3	4.1	53.4
	Financial liabilities at amortised cost
	Borrowings2)	141.2	7.8	149.0	152.4	105.1	257.5
	Lease liabilities	165.1	34.4	199.5	142.0	34.2	176.2
	Other financial liabilities	-	6.8	6.8	-	5.2	5.2
	Trade and other payables1)	-	57.6	57.6	-	49.1	49.1
	Deferred consideration payable2)	0.1	0.3	0.4	1.0	2.3	3.3
	Total	306.4	106.9	413.3	295.4	195.9	491.3
	Total financial liabilities	363.8	114.2	478.0	344.7	200.0	544.7

1) Amount does not reconcile with amount in the statement of financial position due to non-financial items.

2) In the statement of financial position, contingent consideration payable, borrowings and deferred consideration payable are presented as Loans payable.

Financial assets and liabilities carried at amortised cost are considered to have carrying amounts that materially correspond to their fair value.

Recognised fair value measurements - valuation technique and principal inputs

A breakdown of how fair value is determined is indicated in the following three levels:

denominated bond funds where the valuation is based on level 1.

Level 1: The Group has liquid short-term investments which consist of highly diversified euro Level 2: The Group has foreign currency swaps where the valuation is based on level 2.

Level 3: The Group has the following financial assets and liabilities recurrently measured using level 3 fair value measurements.

a) At year-end 2020, other financial assets measured at fair value include 14% of the voting shares in a dialysis clinic in Germany. The investment was made in December 2020. The prior year includes 11.2% of the voting shares in a biotechnology company, which was reclassified to an investment in an associate in December 2020.

b) The fair value of the contingent consideration payable, resulting from past business combinations, are based on the estimated outcome of future performance targets.

c) The Group is contractually obliged, at a future date, to acquire a non-controlling interest in one of the Group's German subsidiaries at market price determined at that future date. Fair value amounted to €18.9m (€17.2m). The valuation is based on management's estimate of the exercise date and the expected valuation of the put option at that

time. Due to contracted terms disadvantaging the holder, it is estimated that the put option will be exercised in 2023 at the earliest. In determining the fair value of the obligation, estimations of key variables are made, of which the most significant are the growth rate of the business to determine its profitability at the future date of exercise and the discount rate applied to the nominal value.

The put option liquidity obligation with noncontrolling interests in MHI amounted to €27.0m (€21.7m). Half of the put options can be exercised from March 2023 and the remaining half from March 2027. In determining the fair value of the put option liquidity obligation estimations of key variables were made, of which the most significant are the growth rate of the business to determine its profitability at the future date of exercise and the discount rate applied to the nominal value.

The following table summarises the quantitative information about the significant unobservable inputs used in level 3 fair value measurements:

	Fair Value (€m)		Inputs		Sensitivity
Description	31 Dec 2020	31 Dec 2019		31 Dec 2020	31 Dec 2019	Relationship of unobservable inputs to fair value (FV)
Put option (liquidity obligation with non-controlling	18.9	17.2	Earnings growth factor	5.5%	5.5%	Increase of 1% point in profit growth = increase in FV liability of €0.3m
interests in a German subsidiary)			Risk adjusted discount rate	0.4%	0.8%	Decrease of 1% point in discount rate = increase in FV liability of €0.6m
Put option (liability obligation with non-controlling	27.0	21.7	6 year projected CAGR EBITDA	27.0%	20.6%	Increase of 10% in CAGR EBITDA = increase in FV liability of €3.2m
interests in MHI)			Risk adjusted discount rate	11.3%	12.2%	Decrease of 1% point in discount rate = increase in FV liability of €1.2m
Contingent consideration payable	18.5	14.5	Risk adjusted discount rate	5.5%-8.7%	5.5%-8.7%	Decrease of 1% point in discount rate = increase in FV liability of €0.2m

No additional significant changes have been made to valuation techniques, inputs or assumptions in 2020.

No financial assets or liabilities have been reclassified between the different levels in the fair value hierarchy.

7. Net financial debt and other financial liabilities

€m	31 Dec 2020	31 Dec 2019
Non-current loans payable	152.8	163.8
Current loans payable	15.1	111.5
Total loans payable	167.9	275.3
Less: short-term investments	-40.1	-
Less: cash and cash equivalents	-46.7	-34.8
Loans payable net of cash and liquid short-term investments	81.1	240.5
Non-current lease liabilities	165.1	142.0
Current lease liabilities	34.4	34.2
Total lease liabilities	199.5	176.2
Financial debt	367.4	451.5
Less: short-term investments	-40.1	-
Less: cash and cash equivalents	-46.7	-34.8
Net financial debt	280.6	416.7
€m	31 Dec 2020	31 Dec 2019
Other financial liabilities
Non-current	45.9	38.9
Current	6.8	5.2
Total	52.7	44.1