Dedicare : Interim report January – September 2021

Interim report

1 January - 30 September 2021

"Very strong and profitable growth during third quarter"

Period 1 July - 30 September

• Operating revenue SEK 330.7 million (250.9)
• Operating profit SEK 22.9 million (15.6)
• Operating margin 6-9 percent (6.2)
• Profit after financial items SEK 25.0 million (18.0)
• Profit for the period SEK 20.0 MSEK (14.0)
• EBITDA SEK 26.0 million (19.4)
• Cash flow from current operations SEK 13.7 million (6.7)
• Cash flow from current operations per share SEK 1.46 (0.71)
• Earnings per share SEK 2.13 (1.49)
• Equity per share SEK 17.01 (13.54)
• Return on equity 13.3 percent (11.5)

Period 1 January - 30 September

• Operating revenue SEK 895.6 million (638.0)
• Operating profit SEK 61.7 million (31.3)
• Operating margin 6.9 percent (4.9)
• Profit after financial items SEK 62.5 million (32.9)
• Profit for the period SEK 49.0 million (24.4)
• EBITDA SEK 70.8 million (39.0)
• Cash flow from current operations SEK 48.4 million (34.1)
• Cash flow from current operations per share SEK 5.15 (3.63)
• Earnings per share SEK 5.21 (2.60)
• Equity per share SEK 17.01 (13.54)
• Return on equity 33.0 percent (22.8)

The Group President's statement

Third quarters revenue of SEK 330.7 million (250.9), an increase of 31.8 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 22.9 million (15,6) and the operating margin improved to 6,9 percent (6.2). In the Nordic region, restrictions regarding Covid-19 have begun to repeal, and a return to a more normal situation is expected in the future. How this will affect Dedicare in the future is difficult to assess. However, we can state that the accrued care debt, as a result of the pandemic, needs to be handled.

Sweden

Revenue in Sweden increased by 18.1 percent during the third quarter compared to the same period last year. High demand for staffing of nurses and social workers is the primary explanation to the growth, but even the demand for doctors have returned to more normal levels during the third quarter. Operating profit remained negative during the third quarter but increased compared to the same period last year

as a result of the strong increase in revenue. In August, Eva Brunnberg acceded as our new CEO in Sweden.

We have taken a clear position in the media for good working conditions, where we demand collective agreements and occupational pensions for all employees in the industry. For Dedicare, this is a matter of course. In The Swedish Municipalities and Regions (SKR) future national procurement, we hope and expect this to be considered. The national procurement process will start during the fourth quarter.

Norway

The Norwegian operations continues to growth strongly even during third quarter, both regarding revenue and operating profit. The revenue in Norway increased by 52,4 percent compared to the same period last year. All areas have had high demand and growth. During the quarter, travel restrictions have eased, and quarantine rules were abolished for people who are considered fully vaccinated against Covid-19. This has a positive impact on the business.

Denmark

In Denmark, the revenue and operating profit decreased slightly during the third quarter compared to the same period last year. Our Danish acquisition has been a total success, and the operations moved to a larger head office during the third quarter. In parallel, a successful internal reorganization has been carried out that better equips the business for future growth. During the quarter, Denmark has completely abolished all restrictions linked to Covid-19, which facilitates the operations.

We have a stable base in our operations and a strong belief in our ability to develop it further. I am proud and happy about the great results the business has delivered so far this year!

Krister Widström

Group President

Financial information

July - September 2021

Revenue

The Group's revenue for the period increased by

31.8 percent to SEK 330.7 million (250.9). 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 114.6 million (97.0). The increased revenue for the Swedish business is attributed to all areas, as the demand has increased as vaccination against Covid-19 has continued.
   In Norway the revenue increased for the period by

1. percent to SEK 183.6 million (120.5). All service areas show growth. During the period, travel restrictions and quarantine rules were abolished, which had a positive effect on the operations.
   In Denmark the revenue decreased for the period by

1. percent to SEK 32.5 million (33.4). The decrease is primary attributed to staffing of doctors. In Denmark, all restrictions have been abolished during the period and society has begun to return to a more normal situation again.

Profit

The Group's operating profit for the period amounted to SEK 22.9 million (15.6), with an operating margin of

1. percent (6.2). The increased operating profit is primary attributed to the Norwegian business.
   Sweden's operating profit for the period amounted to SEK -1.2 million (-3.8), with an operating margin of -

1. percent (-3.9). The increased operating profit is mainly attributed to increase in revenue in all areas.
   Norway's operating profit for the period amounted to
   SEK 22.2 million (17.0), with an operating margin of

1. percent (14.1). The improved profit is mainly attributed to the business growth in all areas.

Denmark's operating profit for the period amounted to SEK 1.9 million (2.5), with an operating margin of 5.8 percent (7.4).

The profit for the period amounted to SEK 20.0 million (14.0).

REVENUE AND OPERATING MARGIN PER QUARTER 2017-2021

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

350
							14%
300
							12%
250
							10%
200	8,5%						8,6%
							8%
150	6,7%	7,0%	6,7%				6,9%
6,0%		6,2%	5,8%		6,2%	6%
			4,5%		4,7%	5,1%	5,0%
100
					4%
			3,3%	3,3%	3,2%
50							2%
0							0%
			Gross sales	Operating margin

REVENUE AND OPERATING MARGIN FOR THE THIRD QUARTER 2017-2021

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

350
				14%
300
				12%
250
				10%
200	8,5%			8%
150	6,7%			6,9%
	6,2%
	5,8%	6%
100				4%
50				2%
0				0%
	Gross sales	Operating margin

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January - September 2021

Revenue

The Group's revenue for the period increased by 40.4 percent to SEK 895.6 million (638.0). The increase is primary attributed to the acquisition of Dedicare A/S and 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 326.3 million (293.9). The increased revenue for the Swedish business is primarily attributed to staffing of nurses and social workers. High sick leave rates within staffing of nurses had a negative impact on the business but have stabilized during the latter part of the period. Staffing of doctors has had challenges with cancellations when planned care has been postponed to the future during the pandemic but has begun to return to more normal levels as the vaccination against Covid-19 continued.
   In Norway the revenue increased for the period by

1. percent to SEK 463.2 million (282.0). The revenue in Norway increased in all service areas. The travel restrictions and quarantine rules that earlier created challenges were abolished during the latter part of the period.
   In Denmark the revenue increased for the period but

1. percent to SEK 106.1 million (62.1). The increase is primary attributed to the acquisition of Dedicare A/S.

Profit

The Group's operating profit for the period amounted to SEK 61.7 million (31.3), with an operating margin of

1. percent (4.9). The increased operating profit is primary attributed to the Norwegian och Danish business.
   Sweden's operating profit for the period amounted to
   SEK -8.5 million (.3.6), with an operating margin of -

1. percent (-1.2). The increased operating profit is mainly attributed to amortization of intangible assets in the Group related to the acquisition of Dedicare A/S. However, the underlying business shows an improvement compared with the same period last year.
   Norway's operating profit for the period amounted to SEK 62.1 million (31.2), with an operating margin of

1. percent (11.1). The increased profit is primary attributed to the business growth and improved margins in business.
   Denmark's operating profit for the period amounted to SEK 8.1 million (3.7), with an operating margin of

1. percent (5.9). The increase is primary attributed to the acquisition of Dedicare A/S.
   The profit for the period amounted to SEK 49.0 million (24.4).

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