Q2 2020 Presentation

17 July 2020Johan Ek, President and CEO

Pernilla Lindén, CFO

Trading Update

• Revenues decreased organically in the quarter, due to impact of Covid-19- Revenue decline for all segments, gradual sequential monthly improvement into June and further

improvements expected in July

• Cost reduction measures implemented, and governmental support received

• Adjusted EBITA margin declined vs last year due to Covid-19

• Leverage of 2.2x (excluding IFRS 16), and significant liquidity, remains comfortable

Strategic Update

• Divestment of Patient Handling Europe closed in May

• New President Patient Handling North America, Randi Binstock, from 1 July 2020

• Launch of the Lift Up Program – progress ahead of plan

• Decision to establish a local stairlift production site in the United States during 2021

Outlook

• Operational leverage in place as trading conditions continue to improve

• Fundamental macro / thematic drivers support our plan

• Repositioned Handicare geared to reach medium-term objectives

Summary Q2 2020 – Good progress despite heavy disruption

2

Significant Covid-19 impact – mitigated by cost-down initiatives

3

• Q2: 31.6% organic Group revenue decline versus last year

• In Quarter Q2 trading

• ~35% organic Group revenue decline April-May versus last year

• ~25% organic Group revenue decline June versus last year

• Disruption in sales processes due to lockdowns

• Delay of certain projects

Focused measures to mitigate impact – very active managementQ2 impact on the business

• Furlough and short-term layoffs

• External spend reduction and general spend and investment freezes of non-critical items / investments

• Virtual sales processes introduced

• Training and best practice sharing for partners to win

• Health and safety measures, e.g.;• Social distancing, fogging units, cleaning kits

Reducing costs short term

Initiatives to protect the top

line and prepare for a bounce back

Lift Up program –Phase 1

• 90% of savings implemented by July

LTM Full yearMEUR 2020 2019 ∆% 2020 2019 ∆% 2019/20 2019

Revenue 39.0 62.9 -38.0 % 92.5 123.2 -24.9 % 214.1 244.9Organic revenue growth -31.6 % -17.7 %Gross margin 40.1 % 41.2 % 40.9 % 40.8 % 40.3 % 40.3 %Adjusted EBITA 0.9 5.3 -82.8 % 3.2 9.2 -65.2 % 10.8 16.8Adjusted EBITA margin 2.4 % 8.5 % 3.5 % 7.5 % 5.1 % 6.9 %

Adj. EBITA (ex. Veh Acc DK) 0.9 5.3 -82.7 % 3.2 9.0 -64.5 % 10.8 16.6Adjusted EBITA margin (ex. Veh Acc DK) 2.4 % 9.2 % 3.5 % 8.0 % 5.2 % 7.3 %

April - June January - June

Financial highlights – Group EBITA profitability maintained

4

Revenue Q2: organic decline -31.6%• Significant impact from Covid-19, but gradual improvement during the quarter from -35% in Apr-May to -25% in June.

EBITA Q2: adjusted margin 2.4% (8.5%)• Gross margin decreased to 40.1% (41.2%). Margin held up despite the significant revenue decline through capacity

adjustments and strong efficiency, but is lower than last year, mainly due to higher costs for freight and unfavourable product mix.

• Operating expenses -5.6 MEUR vs LY, driven mainly by cost reduction activities and the Lift Up Program. • Group-wide expenses 2.6 MEUR (2.9 MEUR).• Government subsidies of 1.6 MEUR impacting EBITA positively.

OCF Q2: 2.0 MEUR (0.9 MEUR)• Operating cash conversion: 73%.• Leverage 2.2x (excluding IFRS 16).

PH Europe divestment: Capital loss of 13.9 MEUR, including transaction costs.

Adjusted EBITA bridge

Note: All P&L numbers in this report exclude the divested businesses Puls and Patient Handling Europe. No change to the balance sheet. Note: Numbers include Vehicle Accessibility Denmark for the period prior the divestment December 2019Note: Organic revenue growth exclude Vehicle Accessibility Denmark

Q2-19 Margin

-9.8

Sales Q2-20

5.6

Opex

0.3

Depreciation

5.3

0.9

-0.4

LTM Full yearMEUR 2020 2019 ∆% 2020 2019 ∆% 2019/20 2019

Revenue 26.0 39.6 -34.4 % 65.0 78.4 -17.0 % 143.9 157.3Organic revenue growth -33.9 % -17.0 %Adjusted EBITA 2.7 6.6 -59.4 % 8.8 12.9 -31.8 % 20.7 24.8Adjusted EBITA margin 10.3 % 16.7 % 13.5 % 16.5 % 14.4 % 15.8 %

April - June January - June

Accessibility – Significant cost-down measures

5

Revenue Q2: organic decline -33.9%• Significant impact of Covid-19, gradual improvement in June

• 40% organic revenue decline April-May versus last year• 23% organic revenue decline June versus last year

• Countries such as Germany and Netherlands have performed better than the average of Accessibility, while countries such as Italy, France, the UK and the US have performed worse than the average of the business unit.

EBITA Q2: adjusted margin 10.3% (16.7)• Adjusted EBITA margin decreased with 6.4ppts. Capacity adjustments and general cost reductions

could not cover for the revenue decline due to Covid-19. Gross Margin was slightly down mainly due to increased freight costs and unfavourable product mix.

Revenue and Organic growth vs previous year (%)* – Stairlifts NA

*e.g. Q2 2020 vs Q2 2019

Q-vs LY %*

Q1-20 Q2-20Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19

Revenue(MEUR)

15% 16% 6% 6% 9% 24% 22% -37%

Patient Handling – Better cost structure in place

6

Revenue Q2: organic decline -30.0%• Significant impact of Covid-19

• 31% organic revenue decline April-May versus last year• 30% organic revenue decline June versus last year

EBITA Q2: adjusted margin 6.0% (8.0%)• Adjusted EBITA margin decreased with 2.0ppts. Positive impact from substantial capacity adjustments

and cost reductions could not cover for the revenue decline due to Covid-19. Gross Margin was down mainly due unfavourable product mix.

• Operating expenses (excl costs of goods sold) significantly reduced in the period both in absolute terms and in relation to revenue.

LTM Full yearMEUR 2020 2019 ∆% 2020 2019 ∆% 2019/20 2019

Revenue 8.9 12.8 -30.0 % 19.2 24.9 -22.6 % 44.1 49.7Organic revenue growth -30.0 % -23.2 %Adjusted EBITA 0.5 1.0 -47.8 % -0.8 0.9 n/a -0.4 1.2Adjusted EBITA margin 6.0 % 8.0 % -3.9 % 3.7 % -1.0 % 2.5 %

April - June January - June

LTM Full yearMEUR 2020 2019 ∆% 2020 2019 ∆% 2019/20 2019

Revenue 4.1 5.5 -26.5 % 8.2 9.9 -17.1 % 18.2 19.9Organic revenue growth -17.1 % -8.1 %Adjusted EBITA 0.3 0.6 -52.2 % 0.5 0.9 -44.2 % 1.1 1.6Adjusted EBITA margin 6.5 % 10.0 % 6.4 % 9.5 % 6.3 % 7.8 %

April - June January - June

Vehicle Accessibility

7

Revenue Q2: organic growth -17.1%• Organic decline driven by decreased sales due to Covid-19 but also due to lower ambulance

conversion compared with last year

EBITA Q2: adjusted margin 6.5% (10.0)• Gross margin in line with last year, but negatively impacted by unfavourable FX rate fluctuations

(weaker NOK against the EUR). • Operating expenses (excl costs of goods sold) significantly reduced in the period in absolute terms but

increased in relation to revenue

Robust Cash & Capital Structure

8

Net debt, (MEUR)Leverage improvement from cash generation and divestments Strong cash conversion development

0.0%

2020 2021 20232022

100.0%

0.0% 0.0%

Borrowing maturity schedule, (%)

Net debt / adj. EBITDA excl. IFRS 16

3.0 3.1

2.6

20192017 2020 Q2

2018 2020 Q1

2.4 2.2Target 2.5x

70%

111%

73%

0

20

40

60

80

100

120

2020 Q2

39%

20192017 2018 2020 Q1

64%

Adj. OCF / adj. EBITDA

Loan repayment of 10 MEUR in the quarter

7763 54

29

30 Jun 202031 Dec 2019 31 Mar 202030 Jun 2019

55 MEUR of cash and ~37 MEUR of unutilized back-up facilities gives a liquidity of 92 MEUR

The Lift Up ProgramBuild a focused Accessibility company poised for growth

Profitability GrowthFocus & Simplify

Half of EBITA impact already in 2020 with full run-rate impact end of year

10

Full adj EBITA impact

2020 adj EBITA impact

2021 adj EBITA impact One–time costs Cash payback

8 MEUR 3-4 MEUR 8 MEUR 8 MEURCash: 6.5 MEUR

Non-cash: 1.5 MEUR

1 year

• Establish a more focused and agile organization• Create a Group that reflects our focus on Stairlifts

• Optimize processes and avoid duplication of efforts

• Simplify structures and streamline cost base – best fit for purpose

• Increase profitability, strengthen margins and drive for growth• Improve margins by better procurement processes and

pricing mechanisms

• Expand market presence

• Strengthen product portfolio

• Drive focused M&A agenda

• Patient Handling North America under review• Take actions to ensure profitable growth

• Assessment of options to follow

The Lift Up Program in summary

11

Build a focused Accessibility company poised for growth

Summary Q2 2020 and Outlook

12

Summary

• Handicare response to pandemic – swift and effective

• Structural improvements in place – stronger & more focused Handicare

• Evidence that trading trends continue to improve into July

Outlook

• Fundamental macro / thematic drivers support our plan – perhaps intensified

• Operational leverage in place as trading conditions continue to improve• Underpins our conviction we will deliver medium-term objectives

Q&A

Forward-looking statements

14

To the extent this report contains forward-looking statements, these statements are based on the current expectations of Handicare’s Group management. Although management considers the expectations expressed in such forward-looking statements to be reasonable, there is no guarantee that these expectations will prove correct. Accordingly, actual future outcomes may differ significantly from those expressed in the forward-looking statements due to such factors as changed economic, market and competitive conditions, changes in regulatory requirements and other policy measures, and fluctuations in exchange rates.

Appendices

16 *The pay-out decision will be based on Handicare’s financial position, investment needs, acquisition opportunities and liquidity position.

An annual dividend corresponding to 30-50 percent of the net profit for the period*

An average annual growth of 10 percent, of which 4-6 percent organically, in the medium-term

Leverage of approximately 2.5 times net debt/LTM (last 12 months) adjusted EBITDA (excl IFRS16), with flexibility for strategic activities*

An adjusted EBITA margin exceeding 12 percent in the medium-term

FINANCIAL TARGETS

LTM 2020 organic:-13%

LTM 2020: 5.1%

30 June 2020: 2.2x

Dividend 2019: postponed dividend proposal for 2019

Q2 revenue and adjusted EBITA bridges

17

-1.1ppts 3.7ppts -1.3ppt

Q2 Adjusted EBITA bridge by SBUQ2 Adjusted EBITA bridge by component

Q2 Revenue bridge by SBU

MEU

R

MEU

R-9.8

Q2-19 Sales-0.4

Margin

5.6

Opex

0.3

Depreciation Q2-20

5.3

0.9

Veh. Acc. DK Q2-19

Veh. AccPH

-5.0

-0.8

62.9

-0.9

0.0

Q2-19 FX

39.0

Q2-19 FX Adj Q2-20 organic

-13.4

Other

-3.8

Acc

57.1-31.6%

8.5% 2.4%

Margin-0.5

Q2-19 PH

-3.9

Acc-0.3

Veh. Acc

0.3

Other Q2-20

5.3

0.9

-59%Growth -48% n/a -83%-52%

Cash flow

18

Adjusted OCF: 2.0 MEUR (0.9)• Other specified items paid in Q2-20: 1.9 MEUR• Increased operating cash flow due to improved net working capital• Q2-20 capex of 1.0 MEUR (2.5% of revenue)

Net debt / adjusted EBITDA 2.2x (excl IFRS 16)• Strong cash flow position, cash balance end of the period 54.6 (76.6), in addition

an RCF of 40 MEUR, of which c. 37 MEUR undrawn at quarter end• Following strong cash position, 10 MEUR repayment of long-term debt made in

the quarter.• Unpaid other specified items: 7.8 MEUR at 30 Jun 2020.

LTM Full yearMEUR 2020 2019 2020 2019 2019/20 2019

Adjusted EBITDA 2.7 7.4 6.9 13.3 18.6 25.1

Inventory 4.3 1.7 1.0 -0.4 1.9 0.5 Accounts receivable 4.8 -0.4 9.3 -0.0 9.1 -0.2 Accounts payable -9.9 -6.8 -7.6 -6.3 -5.7 -4.4 Other receivables/liabilities 1.1 -0.0 -0.9 -3.6 1.1 -1.7 Change in NWC 0.2 -5.5 1.8 -10.4 6.3 -5.8

Tangible assets -0.2 -0.3 -0.5 -0.7 -1.8 -2.1 Intangible assets -0.7 -0.7 -1.4 -1.2 -3.1 -2.9 Total capex -1.0 -1.0 -1.8 -2.0 -4.9 -5.0

Adjusted operating cash flow 2.0 0.9 6.8 1.0 20.0 14.2

KPI:sPaid tax -0.1 -0.2 -0.2 -0.3 -0.2 -0.3Adjusted OCF / Adjusted EBITDA 73% 12% 99% 7% 108% 57%Net debt (excl IFRS 16) 29.0 76.6 29.0 76.6 29.0 62.5Net debt / Adjusted LTM EBITDA (excl IFRS 16) 2.2 3.2 2.2 3.2 2.2 2.6

April - June January - June

Group* 30 Jun 30 Jun 31 DecMEUR 2020 2019 2019

Goodwi l l 101.2 164.4 159.3Other intangible assets 39.0 47.4 46.3Property, plant and equipment 4.9 8.4 7.9Right-of-use assets 16.4 27.6 22.5Deferred tax assets 1.3 7.3 3.2Other non-current assets 0.0 0.2 0.1Total non-current assets 162.9 255.3 239.2

Inventory 22.5 32.8 27.7Accounts receivable 26.0 42.1 40.4Tax receivables 0.1 0.2 0.3Other current assets 2.9 3.6 2.8Cash and cash equiva lents 54.6 29.1 33.8Total current assets 106.2 107.9 105.0

Total assets 269.1 363.1 344.2

Total equity 121.2 179.9 173.4

Provis ions for pens ions 0.5 0.2 0.6Deferred tax l iabi l i ties 6.3 8.0 6.0Advance payments 2.3 2.4 2.4Other l iabi l i ties 0.9 0.4 0.8Lease l iabi l i ties 13.7 22.6 18.2Interest-bearing loans 82.6 104.7 95.1Total long-term liabilities 106.3 138.3 123.1

Interest-bearing loans - 0.0 -Lease l iabi l i ties 3.7 4.9 4.4Accounts payable 12.8 23.5 23.1Other current l iabi l i ties and provis ions 25.0 16.5 20.2Total current liabilities 41.6 45.0 47.7

Total shareholders' equity and liabilities 269.1 363.1 344.2

Balance Sheet

19

Patient Handling EU/ROW Q1 Q2 Q3 Q4 Full year Q1 Q2MEUR 2019 2019 2019 2019 2019 2020 2020

Revenue 6.9 6.5 5.9 6.9 26.1 7.5 2.6Adjusted EBITA (incl IFRS16) 1.3 1.2 1.0 1.2 4.7 1.5 0.7Adjusted EBITA margin 19.4 % 18.9 % 16.2 % 17.3 % 18.0 % 19.7 % 25.8 %

Divestment of PH EU/ROW

20

Background:• In 2019, PH EU accounted for 11% of Group sales • An important step in focusing Handicare on its core businesses• The divestment creates additional capacity for growth (both organic and

through M&A) and expansion of the core businesses of Handicare• Divested to Direct Healthcare Group• Signed 9 April, closed 4 May 2020 after finalised carve-out

Financial impact:• Enterprise Value: 29.7 MEUR• Capital loss of approx. 13.9 MEUR, including transaction costs. • EV / adjusted EBITDA: approx. 8x