Accounting policies

This year-end report was prepared in accordance with IFRS and IAS 34 Interim Financial Reporting. Information in accordance with IAS 34.16A exist, except in the financial statements and the related notes also in other parts of the year end report. The year-end report for the parent company was prepared in accordance with the Swedish Annual Accounts Act (1995:1554) and the Securities Market Act (2007:528) in compliance with recommendation RFR 2 Accounting for Legal Entities of the Swedish Financial Reporting Board. The accounting policies and basis for calculations applied in the 2020 annual report for AddLife AB were also used in the interim report. The amendments to IFRSs applicable from 1 January, 2021 have no effects to AddLife's financial reports for the financial year ended 31 December, 2021.

Alternative performance measures

AddLife presents certain financial measures in the year-end report that are not defined according to IFRS. The Company believes that these measures provide valuable supplemental information to investors and the Company's management as they allow for evaluation of trends and the Company’s performance. For additional information regarding choosen key ratios, please refer to AddLife's annual report 2020. Since all companies do not calculate financial measures in the same way these are not always comparable to measures used by other companies. These financial measures should therefore not be considered as a replacement for measurements as defined under IFRS. This report provides information in greater detail regarding definitions of financial performance measures.

Transactions with related parties

No transactions with related parties that materially affected the Group’s financial position and earnings took place during the financial year.


Events after the end of the financial year

On December 22, 2021, AddLife signed an agreement to acquire all the shares in the Spanish company MBA Incorporado S.L. The agreement was signed with the majority owner and on January 20, 2022, the acquisition was completed and all shares were accessed. MBA is a leading independent orthopaedic surgery distributor with operations in Spain, Italy and Portugal. The company has a turnover of approximately EUR 67m and around 285 employees. The agreed purchase price for 100 percent of the equity amounts to EUR 111m cash. A preliminary purchase price allocation has been established: 

Download Excel

Fair value MBA Incorporado S.L
Intangible non-current assets 423
Other non-current assets 173
Inventories 270
Other current assets 304
Deferred tax liability/tax asset 18
Other liabilities -326
Acquired net assets 862
Goodwill 286
Consideration¹ 1,148
Less: cash and cash equivalents in acquired businesses -115
Effect on the Group’s cash and cash equivalents 1,033
¹ The consideration is stated excluding acquisition expenses.  

In connection to the acquisition, additional credits of EUR 98.5m have been raised with Handelsbanken. The credit agreement runs for twelve months with an extension option of up to a further 24 months.

Kristina Willgård has on February 3, 2022, informed AddLife AB:s Board of Directors that she plans to step down as CEO. The transition will take place when succession has been completed or during the latter part of 2022 at the latest.

No other events of significance to the Group occurred after the end of the financial year. 

Risks and uncertainties

AddLife’s earnings and financial position, as well as its strategic position, are affected by various internal factors within AddLife’s control and various external factors over which AddLife has limited influence. AddLife’s most significant external risks are the state of the economy and market trends combined with public sector contracts and policy decisions, as well as competition. The risks and uncertainties are the same as in previous periods. For more information, see the section “Risks and uncertainties” in the administration report, in AddLife’s annual report 2020. The Parent Company is indirectly affected by the above risks and uncertainties through its function in the Group.

Latest updated: 2/3/2022 6:09:08 PM by