Dedicare : Interim report January – December 2021

Year-end Report

1 January - 31 December 2021

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"Very strong growth during the year with good profitability"

Period 1 October - 31 December

• Operating revenue SEK 354.3 million (247.1)
• Operating profit SEK 26.1 million (12.5)
• Operating margin 7.4 percent (5.1)
• Profit after financial items SEK 24.6 million (14.7)
• Profit for the period SEK 16.6 million (11.7)
• EBITDA SEK 30,5 million (16.3)
• Cash flow from current operations SEK 21.1 million (6.1)
• Cash flow from current operations per share SEK 2.25 (0.65)
• Earnings per share SEK 1.77 (1.25)
• Equity per share SEK 19.00 (14.41)
• Return on equity 10.4 percent (9.6)

Period 1 January - 31 December

• Operating revenue SEK 1,249.9 million (885.2)
• Operating profit SEK 87.8 million (43.9)
• Operating margin 7.0 percent (5.0)
• Profit after financial items SEK 87,1 million (47.6)
• Profit for the period SEK 65.6 million (36.1)
• EBITDA SEK 101.2 million (55.4)
• Cash flow from current operations SEK 69.6 million (40.1)
• Cash flow from current operations per share SEK 7.41 (4.27)
• Earnings per share SEK 6.98 (3.85)
• Equity per share SEK 19.00 (14.41)
• Return on equity 42.4 percent (32.0)

DIVIDEND

The board of Dedicare has proposed a dividend of SEK 4.00 per share (2.50), corresponding to SEK 37.6 million (23.5) regarding the 2021 financial year. The Group's distribution policy is for the yearly dividend to amount at least 50 percent of the net profit. Proposed dividend corresponds to 57 percent (86) of the year's net profit. Dedicare's equity/assets ratio amounts after proposed dividend to 30.6 percent (32.9), which is in line with the Group's long-term goal of at least 30.0 percent.

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The Group President's statement

The Group

The fourth quarter's revenue of SEK 354.3 million (247.1), an increase of 43,4 percent compared to the same period last year, is Dedicare's highest increase of all time for a single quarter. The operating profit amounted to SEK 26.1 million (12.5) and the operating margin improved to 7.4 percent (5.1). Towards the end of the fourth quarter, restrictions regarding Covid-19 was once again tightened in Scandinavia. The restrictions has not affected Dedicare's operations since the organization earlier on adapted to the conditions that the pandemic has entailed.

Sweden

Revenue in Sweden increased by 33.5 percent during the fourth quarter compared to the same period last year. High demand for staffing of nurses and social workers is the primary explanation to the growth. In addition, the demand for doctors have returned to more normal levels during the fourth quarter.

Social sustainability is of high priority to Dedicare and during the year we have taken a clear position for good working conditions through demanding collective agreements and occupational pensions for all employees in healthcare staffing industry in Sweden. Today, only one in three companies in care staffing has a collective agreement, which among other things can lead to insecurities for employees in their declining years. In The Swedish Municipalities and Regions' (SKR) national procurement of care staffing services, good employment conditions such as occupational pensions is included in the requirements, which is very gratifying.

Norway

The Norwegian operations continued to grow considerably during the fourth quarter of the year. Revenues in Norway increased by 61.0 percent compared with the same period last year. All areas have had high demand and growth.

In September, parliamentary elections were held in Norway and the newly elected government has presented a proposal for imposing restrictions on staffing activities in Norway. The proposal's two main points are to prohibit staffing in the construction sector in Oslo and that only organizations with collective agreements (tariffavtale in Norwegian) are allowed to hire staff. As most of Dedicare's customers have collective agreements, our assessment is that these proposals will have no impact on Dedicare's operations.

Denmark

In Denmark, revenues increased by 13.9 percent during the fourth quarter compared with the same period last year. The operations in Denmark have developed according to plan and delivers in a stable manner.

Additional information

During the year, we have concluded that the Finnish market for healthcare staffing is not sufficiently developed. During the past year, operations in Finland have therefore shifted their focus to recruiting staff for the rest of the Nordic region. At present, there is no plan to increase our presence at the Finnish market, but we regularly evaluate the opportunities ahead.

During the quarter, we carried out a large branding campaign that went by the name "Working Life". The message was to highlight the opportunities we are able to offer employees within helathcare and social work to improve work-life balance as a consultant. The outcome was very successful with high impact.

Overall, I am very proud of how well the organization has performed in 2021 - despite a challenging year marked by the pandemic - and would like to thank all employees and consultants for their fantastic commitment and hard work!

Krister Widström

CEO and Group President

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Financial information

October - December 2021

Revenue

The Group's revenue for the period increased by

43.4 percent to SEK 354.3 million (247.1). The increase is mainly attributed to growth in the Norwegian operation. For more information, see note 1 Segment information and information about categories of revenue.

In Sweden the revenue increased for the period by

1. percent to SEK 126.8 million (95.0). The increase in revenues for the Swedish business are attributable to all areas. During the fourth quarter, the spread of infection increased once again with high sick leave rates as a result, which had a negative effect on primarily the nursing staffing.
   In Norway the revenues increased for the period by

1. percent to SEK 185.6 million (115.3). The increase in revenues are attributable to all areas and demand has continued to be high in the nursing and doctor staffing.
   In Denmark the revenues increased by 13.9 percent to SEK 41.9 million (36.8). The increase is primarily attributed the doctor staffing.

Profit

The Group's operating profit for the period amounted to SEK 26.1 million (12.5) with an operating margin of

7.4 percent (5.1). The increased operating profit is primary attributed to the Norwegian business.

Sweden's operating profit for the period amounted to SEK -5.0 million (-4.9) with an operating margin of -

1. percent (-5.2). The decrease in operating profit is primarily attributed to squeezed margins. Amortization of intangible assets in the Group related to the acquisition of Dedicare A/S is also reported in the Swedish segment, which has a negative effect on operating profit
   Norway's operating profit for the period amounted to
   SEK 28.7 million (14.6), with an operating margin of

1. percent (12.7). The improved profit is mainly attributed to the business growth. During the period, adjustments were made regarding employer contributions for the current year, which had a positive effect on operating profit for the fourth quarter of approximately SEK 5.8 million. As the correction refers to the current year, the figures

presented accumulated for the period January - December 2021 give a accurate and fair picture. The late correction is due to a delay in the developement and adaption of system support by an external supplier.

Denmark's operating profit for the period amounted to SEK 2.3 million (2.8), with an operating margin of

5.5 procent (7.6). The decrease in operating profit is mainly attributable to increased operating costs.

The profit for the period amounted to SEK 16.6 million (11.7).

DEVELOPMENT IN REVENUES AND OPERATING MARGIN PER QUARTER 2017-2021

The bars show the Group's revenue, and the line shows the Group's operating margin.

400	16%
350	14%
300	12%
250	10%
200	8%
150	6%
100	4%
50	2%
0	0%
Gross sales	Operating margin

DEVELOPMENT IN REVENUES AND OPERATING MARGIN FOR THE FOURTH QUARTER 2017- 2021

The bars show the Group's revenue, and the line shows the Group's operating margin

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January-December 2021

Revenue

The Group's revenue for the period increased by 41.2

percent to SEK 1,249.9 million (885.2). The increase is primarily attributed to the Norwegian operations and the acquisition of Dedicare A/S. For more information, see note 1 Segment information and information about categories of revenue.

In Sweden the revenue increased for the period by

1. percent to SEK 453.1 million (388.9). The increased revenue for the Swedish business is primarily attributed to staffing of nurses and social workers. The staffing of doctors has been negatively affected by the postponed planned healthcare due to Covid-19, but has gradually returned to more normal levels.
   In Norway the revenue increased for the period by

1. percent to SEK 648.9 million (397.4). The revenues in Norway increased in all service areas. During the period, the Norwegian operations have had challenges with travel restrictions and quarantine rules within the Nordic region, but have managed to adapt the operations well to new conditions.
   In Denmark, revenues for the period increased by

1. percent to SEK 147.9 million (98.9), which is attributable to the acquisition of Dedicare A/S and the staffing of doctors.

Profit

The Group's operating profit for the period amounted to SEK 87.8 million (43.9) with an operating margin of 7.0 percent (5.0). The increased operating profit is primarily attributed to the Norwegian business.

Sweden's operating profit for the period amounted to SEK -13.4 million (-8.4) with an operating margin of -

1. percent (-2.2). The decreased operating profit is mainly attributed to impaired margins and to amortization of intangible assets in the Group related to the acquisition of Dedicare A/S.
   Norway's operating profit for the period amounted to
   SEK 90.8 million (45.8), with an operating margin of

1. percent (11.5). The increased profit is primarily attributed to the business growth.
   Denmark's operating profit for the period amounted to SEK 10.4 million (6.4), with an operating margin of

1. percent (6.5). The increase is primarily attributed to the acquisition of Dedicare A/S as well as business growth.

The profit for the period amounted to SEK 65.6 million (36.1).

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