Ambea's year-end report January - December 2024

Strong end to a successful year

CEO comments:

Ambea ended the year with higher earnings and a positive trend in most business areas. In the fourth quarter, we passed a milestone by reaching a capacity of more than 10,000 beds and care places under own management, distributed across nearly 1,000 units. We also secured our future capacity by signing contracts for new care homes in both Sweden and Norway.

Vardaga had a successful quarter and is working actively to initiate more dialogues with municipalities to meet the growing demand for nursing homes.

Nytida's operations were stable during the quarter. During the period, we signed a contract for six new beds, and completed the acquisition of Friab, a care provider with operations in foster homes, HVB homes (for care or residence) and assisted living. The acquisition comprises 16 units with 232 beds and care places.

Stendi continued to have a stable and high occupancy rate in care for children and young people, and delivered continued strong earnings. During the period, we signed contracts for six new residential facilities with a total of 42 beds.

The positive trend continued for Altiden, which means that our efforts to deliver positive earnings for both the quarter and the full-year have been successful. The Danish operations are now standing on more stable ground, where our quality and profitability can help solve our clients' need for care.

Margin improvement and strong financial position

Net sales rose 7 per cent during the quarter to SEK 3,637 million (3,412). The increase was due to good organic growth of 5 per cent. EBITA was SEK 344 million (286) and the operating margin was 9.5 per cent (8.4). Due to the strong trend during the quarter, we achieved an operating margin of 9.7 per cent (8.1) for the full-year.

Free cash flow totalled SEK 708 million (592). Due to the company's strong financial position and reduced indebtedness, the Board decided to implement a share buyback. The programme comprises a maximum of 2 million shares. The conditions surrounding the buyback have been communicated separately. A dividend of SEK 2.20 (1.50) per share has been proposed for 2024, in line with the Group's dividend policy.

Fourth quarter October-December

• Net sales rose 7 per cent to SEK 3,637 million (3,412). Organic growth was 5 per cent and acquired/divested growth was 2 per cent.
• EBITA was SEK 344 million (286), representing a margin of 9.5 per cent (8.4).
• Operating profit (EBIT) totalled SEK 318 million (264), representing a margin of 8.7 per cent (7.7).
• Profit for the period totalled SEK 147 million (133).
• Earnings per share were SEK 1.76 (1.48) before dilution and SEK 1.75 (1.48) after dilution.
• Cash conversion was 132.1 per cent (125.7).
• Free cash flow totalled SEK 708 million (592).

Webcast/telephone conference

In connection to the announcement, Ambea will host a telephone conference today at 10:00 (CET). The presentation will be held in English and available as webcast on www.ambea.com or direct link: https://edge.media-server.com/mmc/p/uroohfa6

Telephone conference
To participate the conference call, register before the call using the link below. Upon registration you will receive a dial-in number and a unique personal PIN code. To ensure that the connection to the conference call is working, please call ten minutes before the conference call is due to start.

Registration:
https://register.vevent.com/register/BIe341c406aae444789489518ab57577a6

The quarterly earnings report and related presentation will be available on ambea.com/investor-relations/reports/reports-and-presentations