ADDvise Group AB: Year-end report 2024, January 1-December 31

October-December 2024

Net revenue for the period was SEK 441.6 million (397.0), an increase of 11.2%

On an organic basis, net revenue declined by 3.4%

Orders received for the period was SEK 504.3 million (389.9), an increase of 29.3%

On an organic basis, orders received decreased by 1.5%

EBITDA for the period was SEK 89.4 million (126.1)

Profit/loss for the period was SEK 5.5 million (29.9)

Basic earnings per share for the period amounted to SEK 0.03 (0.16)

Cash flow from Operations for the period was SEK 64.0 million (77.9)

January-December 2024

Net revenue for the year was SEK 1,670.7 million (1,373.0), an increase of 21.7%

On an organic basis, net revenue declined by 14.3%

Orders received for the year was SEK 1,866.1 million (1,409.5), an increase of 32.4%

On an organic basis, orders received decreased by 8.6%

EBITDA for the year was SEK 379.0 million (425.5)

Profit/loss for the year was SEK 90.0 million (103.5)

Basic earnings per share for the year amounted to SEK 0.46 (0.55)

Cash flow from Operations for the year was SEK 182.5 million (332.4)

Net debt to EBITDA for the year was 3.8 (2.3)

The Board of Directors proposes that no dividend be paid in respect of the year 2024

On February 7, 2025, the Board of Directors resolved on a rights issue of A and B shares, conditional upon an extraordinary general meeting approving amendments to the articles of association's limits for share capital and number of shares

CEO's comment

Strong finish of a challenging year

2024 was a year marked by both challenges and opportunities. Net revenue increased by 22% to SEK 1,671 million, mainly driven by acquisitions, while net revenue decreased by 14% on an organic basis. Two product categories - pharmaceuticals and rental of equipment for clinical trials - had particularly tough comparative figures from the previous year. We are now seeing a return to normalised levels in these areas, and we are optimistic about future growth.

Our business units are well positioned in the current geopolitical climate and uncertainty about potential trade barriers. We continue to see that we will benefit from the demographic development in our markets in the long term.

In the fourth quarter, net revenue amounted to SEK 442 million (397), an increase of 11.2% compared to the same period in 2023. On an organic basis, net revenue decreased by 3.4% in the quarter, but we see a clear turnaround - in December we achieved positive organic growth of 4.8%. EBITDA for the quarter amounted to SEK 89 million (126) with a margin of 20% (32%), where the lower margin is mainly explained by the product mix. Operating cash flow amounted to SEK 49 million (52), with an increase in working capital of SEK 5 million, mainly driven by a rise in trade receivables at the end of the year.

New long-term targets for sustainable and profitable growth

The Board of Directors has adopted new long-term financial targets, designed to ensure profitable growth, financial stability and long-term shareholder value. These targets aim for ADDvise to:

Achieve an average annual EBITA growth of 15%

Have an annual return on capital employed of 15%

Have a net interest-bearing debt of no more than 3.0 times EBITDA

Distribute up to 25% of the previous year's profit in shareholder dividend

In order to create the best conditions to achieve these targets, the Board of Directors has decided to carry out a rights issue of SEK 457 million, with associated warrants that can raise an additional SEK 172 million, subject to approval by the Extraordinary General Meeting. The issue has already been secured to 74.8% through subscription commitments and guarantee commitments from existing shareholders, the Board of Directors and management. The aim is to strengthen the company's financial position and reduce the current level of debt, which is above our long-term target. The proceeds from the issue will mainly be used to reduce total debt, reduce our financial costs and thereby lay the foundation for our continued acquisition journey.

ADDvise is well equipped for the future. With a clear strategy, new long-term financial targets and a capital structure that enables growth, we are ready to take the next step in our development. We continue to focus on what is at our core - saving, extending and improving people's lives.

In conclusion, I would like to extend a big thank you to all our employees for your commitment and hard work during the year. Your contribution has been key to the strong development we are seeing, and I look forward to continuing to build ADDvise forward together.

Staffan Torstensson, CEO

For further information, please contact:

Staffan Torstensson, CEO

+46(0)70-433 20 19

staffan.torstensson@addvisegroup.se

Johan Irwe, interim CFO

+46(0)73-731 26 11

johan.irwe@addvisegroup.se

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

ADDvise is an international life science group. Operating a decentralised ownership model, we develop and acquire high quality companies within the business areas Lab and Healthcare. The Group comprises more than 20 companies and generates annual revenues of close to SEK 1.7 billion. ADDvise is listed on Nasdaq First North Premier Growth Market. Mangold Fondkommission AB, +46 8 503 015 50, CA@mangold.se, is the company's Certified Adviser. More information is available at www.addvisegroup.com.