Administration Report

January 1 – December 31, 2025
The Board of Directors and CEO of AddLife AB (publ), company registration number 556995-8126, hereby submit the annual report and consolidated financial statements for the financial year 2025. The Corporate Governance report and the sustainability report are part of the administration report and are presented on pages 89–97 and 44–88, respectively.

Operations
AddLife is a Swedish-listed medical technology company operating mainly in the European market and consisting of approximately 85 operating subsidiaries in the Labtech and Medtech business areas. The Group has 2,295 employees in 30 countries and offers high-quality, cost-effective solutions and products. The product portfolio consists partly of self-manufactured products and partly of products that are made by other manufacturers. The service portfolio includes, among other things, advice, service and training.

AddLife’s business model is decentralised and our entrepreneur-driven subsidiaries are responsible for the operational business within the framework of the Group’s financial targets. Through a combination of organic growth and selective acquisitions in chosen niches within Life Science, AddLife creates long-term, profitable value.

Its customers are primarily active in the healthcare sector, from research to medical care. AddLife currently has a presence in 30 countries, mainly in the Nordic region, Western, Central and Eastern Europe, as well as China and Australia. The AddLife share has been listed on Nasdaq Stockholm since March 2016.

Key events during the year
The activity in healthcare remained high throughout the year in the markets where AddLife’s companies operate. Waiting times for medical care are still significant in large parts of Europe, while staff shortages and limited investment budgets continue to characterise healthcare systems. The need for solutions that enable more treatments with existing resources – through more efficient workflows, advanced diagnostics and better clinical outcomes – increased further during the year. In this environment, the companies within AddLife continued to perform well, driven by stable demand, strong customer relationships and long-term, structured improvement efforts with a focus on profitability and cash flow.

The Group’s priorities – earnings improvements, organic growth, cash flow and acquisitions – continued to guide operations during the year. Structured work on price and mix optimisation, cost control and tied up capital generated clear results in the form of improved margins, stronger cash flow and significantly lower indebtedness. Net debt in relation to EBITDA amounted to 2.2, which means that at the end of 2025 AddLife had a significantly more robust balance sheet and thereby an enhanced capacity to again increase the pace of acquisitions.

During the year, three acquisitions were completed in line with AddLife’s strategy to acquire small and medium-sized entrepreneur-driven companies in defined, fast-growing and profitable niches. Within Medtech, Edge Medical was acquired in the United Kingdom, a leading distributor in orthopaedic surgery, spinal surgery and neurology with operations in England and Ireland, as well as Opitek, a Danish niche manufacturer within patient positioning that complements the offering in advanced surgery. Within Labtech, Pharmacold was acquired in Denmark, specialised in refrigeration technology and service for the pharmaceutical and healthcare sectors. Together, these acquisitions strengthen AddLife’s position in selected geographies and within prioritised segments.

As AddLife continues to develop and improve its operations, the Group is well positioned for the future. The stable, positive underlying market development, combined with strengthened profitability, improved cash flow and a lower debt ratio, supports the ambition to combine continued organic growth with a gradually increasing level of acquisition activity.

Intangible key resources and value creation
AddLife’s business model is highly dependent on intangible key resources that are not visible in the balance sheet but are critical to the Group’s long-term value creation. These include employees’ specialist expertise, the entrepreneurial corporate culture, strong customer and supplier relationships, as well as established processes and systems for quality, regulatory compliance and business development within the Labtech and Medtech business areas.

The decentralised Group structure, with clear responsibility in the subsidiaries and close customer relationships in local markets, creates the conditions for customer focus, rapid decision-making and effective knowledge sharing. This reduces dependence on individual customers or suppliers and strengthens the Group’s ability to create differentiated offerings.

Employees are AddLife’s most important resource. Through AddLife Academy, skills, leadership and a common corporate culture are developed, which contributes to high motivation and long-term commitment. In addition, there are intangible rights such as trademarks and licences, as well as established processes, methods and IT support linked, for example, to public procurement, sales and supplier management.