Year-end report 2022, January 1-December 31

October–December 2022

Net revenue for the period was SEK 320.3 million (155.0), an increase of 106.6 %. Organic growth was 5.5 %.

Orders received for the period was SEK 517.7 million (177.6), an increase of 191.5 %. Organic growth was 7.7 %.

Adjusted EBITDA for the period was SEK 85.8 million (19.0)

EBITDA for the period was SEK 90.4 million (19.4)

Profit/loss for the period was SEK 28.1 million (1.8)

Earnings per share for the period amounted to SEK 0.16 (0.01)

Cash flow from Operations for the period was SEK 77.8 million

January–December 2022

Net revenue for the year was SEK 951.5 million (466.0), an increase of 104.2 %. Organic growth was 9.5 %.

Orders received for the year was SEK 1,177.8 million (505.0), an increase of 133.2 %. Organic growth was 9.6 %.

Adjusted EBITDA for the year was SEK 174.9 million (57.1)

EBITDA for the year was SEK 185.1 million (57.3)

Profit/loss for the year was SEK 81.1 million (2.8)

Earnings per share for the year amounted to SEK 0.46 (0.02)

Cash flow from Operations for the year was SEK 120.7 million

CEO’s comments

A record profit and robust cash flows

The fourth quarter ended a record year for the Group with higher revenue and profit. The volume of orders received was strong during the quarter and increased by 192 %; organically the increase was 7.7 %. The organic net revenue growth during the quarter amounted to 5.5 %.

When we sum up 2022, we can safely say that we met our target. The adjusted EBITDA was SEK 232 million, and net revenue was SEK 1,100 million, both on a pro forma basis. We updated our financial targets for 2022 in April last year. The target was set to achieve an adjusted EBITDA of over SEK 200 million and revenue of SEK 1,000 million by the end of 2022 on a rolling 12-month pro forma basis.

We have continued to work systematically to improve our margins, and despite a challenging environment of inflation and price increases, we have been able to strengthen our EBITDA margin through an active price strategy. Acquisitions and above all the Healthcare segment have contributed to the margin improvement, and the Group’s total adjusted EBITDA margin is 28.2 % (12.5) for the quarter and 18.4 % (12.2) for the full year 2022.

The Group’s growth during the quarter was largely driven by increased demand within the Healthcare segment, where orders received increased 260 % and net revenue 189 % compared to the same period last year, due to both acquired and organic growth. One contributing factor to the strong growth was strong demand within our pharmaceutical companies in the US. Although the Healthcare segment has been exceptionally strong during the fourth quarter and we are seeing good demand at the start of 2023, we are humble in the face of the coming quarters.

During the quarter, the Lab segment increased its orders received by 129 %. However, net revenue decreased by 12.4 % during the quarter. We have worked strategically to improve margins, choose more profitable projects and focus on a higher-margin product mix, all of which has improved the EBITDA margin, which amounted to 17.1 % (10.9) and an EBITDA of SEK 9.4 million (6.9), while revenue growth decreased slightly. We are now well placed to return to growth within the Lab segment, with a stronger platform and product mix.

The Group’s operating cash flow is strong, and our net interest-bearing debt is below our long-term target of 3.0 times EBITDA. At the end of the fourth quarter, this amounted to 2.8 times pro forma EBITDA compared to 2.8 times pro forma EBITDA at the end of Q3. This is despite the fact that during the fourth quarter we increased gross debt in order to make our largest acquisition to date, the Dutch company CliniChain. Our financial position remains good, which means that we are well equipped to make acquisitions in priority markets with a focus on high-quality research and healthcare.

The start of 2023 has been good, and the Group’s order book is at historically high levels. This, combined with good organic growth in orders received, means that we have good visibility with an expectation of strong development ahead. Sustainability continues to be a focus area, and during the quarter we have taken important steps and started mapping the Group’s so-called Scope 3 emissions as well as continuing our work to achieve our sustainability goals published earlier in 2022.

For 2023, ADDvise’s goal is to reach an EBITDA of SEK 330 million with a net revenue of SEK 1.6 billion before the end of 2023 on a pro forma rolling 12-month basis.

Our overall goal is to extend, improve and save people’s lives by developing and providing products and services for healthcare and research. The fourth quarter showed that we can do this while increasing profit through both organic growth and acquisitions, and we have good hopes to continue on the same trajectory during 2023.

Rikard Akhtarzand, CEO, ADDvise Group AB (publ)

For further information, please contact:

Rikard Akhtarzand, CEO

+46 (0)8-128 766 08

rikard.akhtarzand@addvisegroup.se

Sebastian Robson, CFO

+46 (0)70-441 84 48

sebastian.robson@addvisegroup.se

ADDvise Group AB (publ), Grev Turegatan 30, SE-114 38 Stockholm, Sweden

Important information:

This information is information that ADDvise Group AB is required to disclose under the EU Market Abuse Regulation. The information was submitted for publication on February 23, 2023 at 07:45 CET.

ADDvise’s financial reports are available on ADDvise’s website,

https://www.addvisegroup.com/investor-relations/financial-and-annual-reports/

The year-end report is published in Swedish and English. The Swedish version represents the original.

About ADDvise Group

ADDvise Group AB (publ) is a leading supplier of equipment to healthcare and research facilities. The Group consists of two business areas, Lab and Healthcare. Sales are global. The Group has a clear acquisition strategy with the aim of raising shareholder value and expanding the business – both geographically and product-wise. ADDvise Group’s shares are listed on Nasdaq First North Premier Growth Market and Mangold Fondkommission AB, +46 8 503 015 50, CA@mangold.se, is the Company's Certified Adviser. Additional information is available at www.addvisegroup.com.