Falck A/S

Falck employs 33,000 highly skilled professionals, delivering more than 8 million emergency response and healthcare services every year. The Lundbeck Foundation owns 58% of Falck.

Falck delivered strong results in 2021 and, with a solid financial basis, good commercial traction and a new strategy in place, Falck is now well positioned for the future. The good results were, to a large extent, due to the extraordinary efforts made in connection with the COVID-19 antigen testing activities in Denmark. Falck performed more than 20 million tests in Denmark during 2021, and the testing service stands as one of the largest and most demanding undertakings in Falck’s history. It is also an example of good public-private cooperation, as Falck supported healthcare systems which were under pressure, and thereby helped maintain the infrastructure of society. Alongside this important contribution to the battle against COVID-19, Falck’s underlying business continued to deliver a stable performance, despite unpredictable, and often difficult, circumstances.

Falck has grouped its activities into two core business areas:

 Emergency Response comprises the segments Ambulance

Europe, Ambulance US and Fire Services.  Direct Healthcare comprises the segments Employee

Healthcare, Assistance and Community Healthcare.

In the Direct Healthcare business area, Employee Healthcare won several new B2B contracts, and in both Assistance and Community Healthcare, the number of healthcare subscriptions increased. In September, Falck announced the strategically important acquisition of Frisk Gruppen in Norway, which specialises in labour market services, occupational health services, and specialist healthcare. With this acquisition, Falck has strengthened its footprint as a significant player in employee healthcare in Scandinavia.

In the Emergency Response business area, Falck won several large, long-term ambulance contracts in Denmark and Sweden and, in the USA, Falck started up the large contract in San Diego at the end of the year. Falck also lost contracts in Denmark, following a decision by the Danish regions to insource. Falck’s Fire Services business won a number of contracts for large industrial corporations in Europe. LAUNCH OF NEW STRATEGY – CARE FOR MORE ‘25 At the beginning of 2021, Falck launched a new, five-year strategy: Care for more ʼ25. The strategy sharpens Falckʼs profile as an integrated healthcare services provider aiming to meet healthcare needs of people throughout their lifetime.

Across markets, Falck can see that people are increasingly demanding healthcare services of a higher quality, that are delivered when and where they need them, tailored to their individual needs, and seamlessly connected across multiple

A number of Falck’s non-core business entities are managed in the Portfolio business.

Managing these entities outside the scope of Falck’s core business allows Falck to optimise the portfolio for value independently of the new strategic direction of Falck.

In December 2021, the Portfolio business area announced the divestment of the Roadside Assistance business in Sweden, Norway, Finland, Estonia and Lithuania. The divestment was regulatory approved in March 2022.

Revenue (DKKm)

15,173

Operating profit (DKKm)

1,741

Net profit (DKKm) 1,229

Number of employees (FTEs) 20,862

types of care. At the same time, societies are under increasing pressure to deliver healthcare to an ageing and more demanding population, while keeping costs under control.

It is Falck’s ambition to serve as a supplement to the public system, by offering flexible resources that can respond to changing healthcare needs, bringing innovations and global learnings to the healthcare sector, and preventing accidents, sickness and work-related healthcare issues, thereby lowering the costs of treatment.

The new service offering, Falck Sundhedshjælp, is a direct outcome of the Care for more ’25 strategy and Falck’s ambition to operate as an integrated healthcare services company. All the new services build on Falck’s experience and reputation within healthcare services, and are the result of collaboration across Falck’s business segments.

FINANCIAL PERFORMANCE

SALES In 2021, revenue was DKK 15,173m (DKK 12,348m), and was positively impacted by COVID-19 antigen testing activities in Denmark amounting to DKK 3,456m. The divestment and discontinuation of operations in the Portfolio segment had a negative impact on revenue for the year, whereas revenue increased in the Core business in both the Emergency Response and Direct Healthcare business areas.

OPERATING PROFIT Cost of services (OPEX) increased to DKK 11,394m (DKK 9,640m), mainly driven by testing activities.

Sales and administrative (SG&A) expenses decreased to DKK 2,006m (DKK 2,087m) due to the discontinuation of businesses in the Portfolio segment. In the Core business, cost savings carried out in the second half of 2020 also reduced SG&A expenses.

EBITA increased to DKK 1,834m (DKK 675m), corresponding to an EBITA margin of 12.1% (5.5%). Excluding testing activities, EBITA was level with 2020 at DKK 605m (DKK 608m), as higher earnings from generally higher contract volumes and business activities, were offset by rampup costs for new contracts, as well as higher operating costs due to an increased use of patient transport services, combined with staff shortages in Emergency Response.

Operating profit (EBIT) was DKK 1,741m (DKK 394m) and was negatively impacted by amortisation of customer contracts of DKK 38m, and special items of DKK 55m.

NET PROFIT Losses related to the divestment of businesses amounted to DKK 107m (DKK 306m), and net financial expenses were DKK 46m (DKK 146m). Compared to 2020, net financial expenses were reduced as a consequence of lower interest expenses on loans, as well as foreign exchange gains. Income tax amounted to DKK 359m, corresponding to an average tax rate of 22.6%.

Profit for the year was DKK 1,229m (loss of DKK 178m).

Figures for 2020 are shown in brackets