The Year-End
Report 2021

Key highlights• Order intake increased by 4% y/y to SEK 4 101m
(3 948m)• Revenue increased by 3% to SEK 4 062m
(3 944m), organic growth of 8% (-9%)• EBITDA amounted to SEK 782m (826m),
corresponding to a margin of 19% (21%)• Operating profit at SEK 438m (466m),
corresponding to a margin of 11% (12%)

Head office
Permobil AB
Box 120861 23 Timrå
SWEDEN
Visiting address
Per Uddéns väg 20
Tel: +46 60 - 59 59 00
Fax: +46 60 - 57 52 50
www.permobil.com

The Year-End Report 2021
Table of contents
Key highlights

02

Letter from the CEO

04

This is Permobil

05

Group summary

06

Consolidated income statement

09

Consolidated statement of comprehensive income

10

Consolidated balance sheet

12Consolidated statement of changes in equity

12

Explanatory notes

14-18

Letter from the CEO
2021 was another year faced with the challenges of varying and ever-changing
government measures against COVID-19 coupled with serious global logistics
challenges. Despite this backdrop, Permobil continued to deliver for its users
and invest in the future.
We found innovative solutions to shortening lead times through intelligent sourcing
and stock management and revisiting the design of some products to mitigate theimpact of the global supply crisis.
Credit must go to all of my Permobil colleagues who continued to show their passion for
the work by ensuring delivery of our products to those who need them.
We invested in the acquisition of Progeo, our first active manual wheelchair
manufacturer in Europe. We also entered into agreement with another European-basedmanual wheelchair company – Panthera (completed in early January 2022). Alongside
the TiLite range, we now have a full, strong and complementary manual chair portfolio
offering in EMEA. We also entered into a partnership agreement with Karma Medical in
the Asia Pacific region and with LUCI to provide smart power wheelchair technology toveterans in the United States.
The acquisition of Treviso-based Progeo also establishes a Permobil Italy country office.
In addition, we opened our own sales operations in Spain together with an innovative
customer experience center in Madrid, the first of its kind for Permobil.
Our world is connected, and so have Permobil power wheelchairs since 2018. In 2021
we reached 10 000 Permobil wheelchair users worldwide who have chosen to activate alive internet connection to their power chair. We launched further connected services
in 2021: the new Voice Assistant on the MyPermobil app provides hands-free, real-time
power wheelchair insights to our users.
We are delighted that our innovation is recognized outside the sector as well. The
Explorer Mini, our mobility device for young children, was included in TIME's top 100
innovations of 2021.
It should be noted that Permobil has no ongoing sales or sourcing from Russia nor
Ukraine. Historically, Progeo had a limited number of orders to a dealer based in Russia
but following their acquisition these have ceased.
In events after the reporting period, the direct impact of the Russia-Ukraine war isdeemed to be low but there is a risk of indirect impact through costs on the supplierside. Currently, Permobil is supporting various disability organizations working with
Ukrainian refugees in Europe. In addition, in March the Group received a shareholder
contribution of SEK 251m.
In 2021, Permobil’s commitment to sustainability remained undiminished despite thepandemic. We continued to develop our future strategy and sustainability KPIs andtargets. Permobil has committed to reducing Scope 1 and 2 CO2 emissions by 70% by
2030 and Scope 3 by 20%.
The time was right to define new core values for Permobil – User First, Trusted, Leading
and Passionate – that reflect who we are today and who we want to be tomorrow.

Bengt Thorsson, CEO
04 The Year-End Report 2021

This is Permobil
Permobil is the global leader in advanced rehabilitation
technology for people with disabilities, with sales in over
70 countries worldwide.
Permobil makes some of the most technicallyadvanced wheelchairs, seating and positioning
solutions available. Yet, the company’s mission is
to innovate for individuals and to celebrate humanachievements. Headquartered in Timrå, Sweden,
Permobil is a global leader in advanced healthcare
solutions, focusing on the development andmanufacturing of our complementary set of productand service offerings: advanced power wheelchairs;
manual wheelchairs; seating and positioning
solutions; power-assist devices and software solutions.
WAY TO THE MARKET
Permobil has the most comprehensive range ofadvanced rehab solutions for users around theworld. In Scandinavia, Permobil’s products are
publicly provided through Functional Aids Centers(“Hjälpmedelscentralen”). In most other geographies
the products are distributed by Durable Medical
Equipment (“DME”) dealers and paid by thegovernment and/or private insurance companies.
For this reason, the sales process can be complex,
typically involving a therapist, dealer, and a Permobil
representative to evaluate the needs of that specificuser and specify the requirements of the tailor-madeproduct offered.
OUR HISTORY
Permobil was founded in 1967 in Sweden, in thebasement workshop of an inventor, entrepreneur
and doctor, Per Uddén. Dr. Per Uddén, was driven bya passion to find new solutions to the problems heencountered in his work as a doctor. With a uniquefocus on the users, he and his team combined

creativity with technology and mechanical ingenuity
to write the first chapter in the Permobil story.
The stories behind all the companies in the Permobil
family are similar. The commitment of our founders
to pursue their dreams of providing a better life for thephysically challenged has led to best-in-class products.
It now drives us to push the boundaries of design andtechnology in pursuit of innovations that help improve
the quality of life for our users.
Permobil’s headquarters is located in Sweden.
Permobil has 1 661 employees in 18 countries.
Production sites are located in China, Italy, theNetherlands, Sweden and USA. Since 2013, thecompany has been wholly owned by Patricia
Industries, a subsidiary of Investor.
PERMOBIL’S BUSINESS STRATEGY
Permobil’s strategy is built on the following tenets:• putting the end-user at the center of everything
we do• developing the best advanced rehab technologies
across all product segments• developing the market and our relationships withthe most clinically competent sales and marketingorganization• being an excellent partner to our customers,
reliable and easy to deal with• continuing to develop the competence within ourcompany and attract new talent• providing outstanding customer service before,
during and after product sales• advocating for the user’s right to get the producthe/she needs.

For 2021

PRODUCTION SITES 2021Timrå, Sweden
Kunshan, China
Treviso, Italy
Oisterwijk, Netherlands
Nashville, TN, USA
Belleville, IL, USA
Milwaukee, WN, USA
Pasco, WA, USA

Permobil Sales offices
Permobil products sold via distributors

Group summary
Financial details in the following summary relate to theyear 2021 are compared to the financial statements forthe year 2020.

Revenue by region

5 000

64%

ORDERS
Order intake in 2021 increased 4% (-11%) to SEK 4 101m
(3 948m).

4 500
4 000
3 500

REVENUES
Revenues in 2021 increased 3% (-11%) to SEK 4 062m
(3 944m), corresponding to an organic growth of 8%(-9%).

9%

2 500

27%

Europe, Middle East and Africa
Revenue in EMEA increased by 11% to SEK 1 083m
(973m) indicating a recovery from 2020 when all
segments except for the services business were
impacted by the COVID-19 pandemic. 2021 figures
include revenues from Progeo - an acquired productcompany in the manual wheelchair segment in Italy.
Americas
Revenue in the Americas increased64%
by 3% to SEK 2620m (2 544m), indicating a recovery from 2020 whenthe market was impacted by the COVID-19 pandemic.
Asia Pacific9%
Revenues in Asia Pacific decreased by -16% to SEK
359m (426m) driven primarily by negative growth
27%segment. The
in relation to the power and manualmain reason being lock-down in Australia due to the
COVID-19 pandemic.

3 000

2 000
1 500
1 000

AMR

EMEA

APAC

500
0
2013

Revenue – Full year
Million SEK
5 000

10

4 500

9

4 000

8

3 500

7

3 000

6

2 500

5

2 000

4

1 500

3

1 000

2

500
0

EARNINGS
Gross profit amounted to SEK 2 280m (2 282m),
corresponding to a margin of 56% (58%).
Earnings before interest, tax, depreciation andamortization (EBITDA) amounted to SEK 782m
(826m),
corresponding to a margin of 19% (21%).
5 000
EBITDA includes non-recurring items of SEK -63m
4 500
mainly driven M&A costs (-59m). Comparable EBITDA
4 000
adjusted for above mentioned expenses was SEK 845m
3 500
(885m).

2013

2014

2015

2016

2017

2018

2019

2020

EBITDA and margin – Full year
Million SEK

1 000

25%

900
800

20%

700

3 000

600

2 500

500

2 000

400

1 500

300

1 000

200

500

100

15%

10%

5%

0

0
2013

2014

2015

2016

06 The Year-End Report 2021

2017

2018

2019

2020

2021

2021

2013

2014

2015

2016

2017

2018

2019

2020

2021

Operating profit amounted to SEK 438m (466m),
corresponding to a margin of 11% (12%). Changes inexchange rates affected the operating profit of SEK -3m(-6m).
Net result for the period totaled SEK 151m (236m),
the result was positively impacted by tax cost forprevious years with SEK 23m (49m) due to a tax
dispute in Sweden related to a shareholder loan withrelated parties, where a final verdict was announced in
Permobil’s favor.

The Group’s cash position at end of December was SEK
962m (1 021m).
Employees
On December 31, the number of employees was 1 661(1 571).
Important events after the end of the period
In January 2022 Permobil closed the acquisition ofPanthera. No other material subsequent events havetaken place after the end of the period.

INVESTMENTS
Net investments in fixed assets amounted to SEK
71m (69m). Capitalized costs for intangible assets
amounted to SEK 104m (50m) driven by investments
in a new ERP system.
Depreciation of tangible and intangible assets
amounted to SEK 343m (363m).
Financing structure
Net debt at the end of December amounted to SEK
2 845m (2 859m) based on the definition in the bankagreement (i.e. loans valued to average FX rates overthe last twelve months). The net debt/EBITDA ratio
was 3.6 (3.5).

Financial summary

Full Year

SEK million

Jan - Dec 2021

Jan - Dec 2020

Change (%)

Order intake

4 101

3 948

4%

Revenue

4 062

3 944

3%

Gross profit

2 280

2 282

0%

56%

58%

-1 498-1 456

37%

37%

782

826

% of Revenue

19%

21%

Operating profit

438

466

% of Revenue

11%

12%

151

236

4%

6%

% of Revenue
OPEX% of Revenue
EBITDANet income% of Revenue

-5%

-6%

08 The Year-End Report 2021

From TIME ©2021 TIME USA LLC. All rights reserved. Used under license:
https://time.com/collection/best-inventions-2021/6112517/permobil-explorer-mini/Income statement

Condensed consolidated

2021

2020

Revenue

4 062

3 944

Revenue

4 062

3 944

Cost of goods sold-1 783-1 662Other operating cost

-540

-522

Personnel cost

-958

-935

Depreciation and amortisation of intangible and tangible assets

-343

-360

-3 624-3 478438

466

Financial income

059

Financial expenses

-221

-275

Financial net

-220

-216

Profit before tax

218

250

Taxes

-67

-14

Net income

151

236

151

236

-

-

151

236

SEK million

Revenue

Operating costs

Total operating costs

Operating profit

Profit and loss from fInancial items

Attributable to:Equity holders of the parent company
Non-controlling interests

Net income

Statement of othercomprehensive income

Condensed consolidated

2021

2020

151

236

Exchange rate differences

33

-26

Extended investment in foreign operations

0

0

Total comprehensive income that may be reclassified subsequently to profit or loss

33

-26

Total comprehensive income

184

210

184

210

Non-controlling interests--

Total comprehensive income

184

210

SEK million

Profit for the period

Comprehensive income that may be reclassified subsequently to profit or loss

Attributable to:Equity holders of the Parent company

10 The Year-End Report 2021

Lilmix.Para is an e-sports team made up of five young
men who all happen to use Permobil power chairs.

9Balance sheet

Condensed consolidated

2021

2020

Intangible non-current assets

7 199

6 846

Tangible non-current assets

595

510

Financial non-current assets

30

44

Inventories

714

437

Current receivables

926

653

Cash and cash equivalents

962

1 021

Total assets

10 426

9 512

Total equity

1 368

1 184

8 262

7 561

796

767

10 4269 512

SEK million

Non-current assets

Current assets

Non-current liabilities
Current liabilities
Total equity and liabilities

Statement of changes in equity
SEK million

consolidated

2021

2020

1 184

974

184

210

1 368

1 184

1 368

1 184

-

-

Attributable to equity holders of the parent company
Opening balance
Total comprehensive income
Closing balance

Attributable to:Equity holders of the parent company
Non-controlling interests

12 The Year-End Report 2021

Steve Gleason, together with his wife Michel, founded 11
Team Gleason, an advocacy group for ALS in the US.

Explanatory notes
SUMMARY OF KEY ACCOUNTING PRINCIPLES
Investor AB acquired Permobil Holding AB withclosing date May 14, 2013. After the acquisition,
Instoria Sweden AB (556930-2606) became the newparent company for the new Group and holds 100% of
the shares in Permobil Holding AB (556630-2054) withsubsidiaries (the Group). Investor AB (556013-8298)
is the ultimate parent and prepares full consolidated
financial statements.
Essential accounting principles applied at the
preparation of the financial information included in
the year-end report are stated below. The principles
have been applied to all financial years presented,
unless otherwise stated.
Basis for preparation
The financial information included in the yearend report comprise the condensed consolidated
income statement, consolidated statement of othercomprehensive income, condensed consolidatedbalance sheet and consolidated statement of changes
in equity (“the financial information”).
The Group applies International Financial ReportingStandards (IFRS), as adopted by the EU for its financial
reporting. In the year-end report the Group applies themeasurement and valuation principles in accordancewith IFRS. The explanatory notes are included for theconvenience of the reader.
Permobil’s consolidated financial statements are basedon historical acquisition values. All amounts are in
SEK millions (SEK m), unless otherwise stated.
Consolidated financial statements
All intra-group receivables or liabilities, income
and expenses, profit or losses incurred in entities
encompassed by the consolidated financial statement
are eliminated in their entirety.
Translation of foreign operations
A foreign operation is an operation carried out in an
economic environment with a currency different fromthat (the functional currency) of the Group’s reporting
value, which is SEK. Assets, including goodwill andother surplus values in such operations, are translated
to the reporting value at the balance sheet date rate.
The income statements of foreign operations aretranslated at the weighted average of exchange rates
for the year. Exchange rate differences arising fromthe translation are recognized in Equity via Other
Comprehensive Income. In case of divesting

14 The Year-End Report 2021

a foreign independent operation, the accumulated
exchange difference is recognized in the income
statement included in the profit or loss arising fromthe divestment.
IncomeIncome is recognized at the actual value of payment
received or expected to be received for products andservices sold in the ordinary course of business of thecompany. Income is recognized upon completion ofdelivery to the customer in accordance with applicablesales conditions. Income is recognized net, excluding
value added tax and after discounts.
Cost of goods soldCost of goods sold in the consolidated financial
statements relates to all production costs includingchange in inventory, direct personnel costs and othercosts directly associated with the production facility.
Tangible and intangible non-current assets
Tangible and intangible non-current assets withlimited useful life are recognized at cost lessaccumulated depreciation and write-downs, whereappropriate. Depreciation is made on a straight-line
basis over the useful life at the estimated residual
value. Land is not subject to depreciation. Intangible
non-current assets with indefinite useful life arerecognized at cost less any accumulated write-down.
They are tested for impairment on an annual basis.
Product development
Expenditures for product development are recognized
as an intangible asset only when the following
criteria are met: a well-defined development projectwith concrete plans as to how and when the assets
will be used in the operation exists, expenses canbe reliably estimated, and the asset is assumed togenerate future economic benefits; implementationof the project is deemed technically feasible, and theGroup is assessed to have the resources required tocomplete the development. The acquisition value ofthe intangible asset includes, in addition to personnel
costs and direct purchases, the share of indirect costs
attributable to the asset. Other development expenses
are expensed as they arise.
Inventories
Inventories are valued at the lower of acquisition costand net realizable value. As regards manufactured
products the acquisition cost is the cost of
manufacturing the product. Net realizable value is theestimated sales price in the normal course of business,less expenses attributable to the sale. Acquisition costis calculated according to the first-in, first-out method,measuring that the inventory items in stock at yearend are assumed to be those most recently purchased.
Financial liabilities
Interest-bearing and non-interest-bearing financial
liabilities not held for trade are recognized as Other
financial liabilities. The basis of valuation is theaccrued acquisition value.
The maturity date of long-term liabilities is more than
one year, whereas liabilities with shorter maturity
dates are recognized as current liabilities. The
expected maturity date of trade liabilities is short, andthey are therefore valued at their nominal amounts,
without discount.
Borrowing costs
Expenses associated with raising of loans arerecognized as a deduction in loan liabilities. Expenses
are released over the term of the loan and are classified
as interest expenses in the income statement.
Income tax
Income tax comprises current tax and deferred tax.
Income tax is recognized in the income statement
when it relates to items in the income statement, andUser First
Leading
TrustedPassionate

in other comprehensive income, or directly in equity,when the underlying transaction is recognized in othercomprehensive income or directly in equity.
Current tax is a tax liability or a tax asset for the current
year, with tax rates which are presently applicable or
expected to become applicable at the balance sheet
date. Where appropriate, adjustments of current tax
relating to previous periods are also included.
Deferred tax is recognized using the balance sheet
method, entailing that deferred tax is estimated on all
identified temporary differences on the balance sheet
date, i.e. the fiscal value of the assets or liabilities on
the one hand, and their recognized values on the otherhand. Deferred tax assets are recognized in the balance
sheet, including non-utilized loss carry-forwards.
However, deferred tax liability on temporary
differences concerning goodwill is not recognized in
the balance sheet; neither is deferred tax recognized
where the temporary difference is associated withinvestments in subsidiaries and associated companies,
where the Group has a controlling influence as to whenreversal of the temporary difference shall be made, andthere is a probability that the temporary difference will
not be reversed in the foreseeable future.
Deferred tax assets are recognized only to the extent
that there is a probability that future taxable profits
will arise, against which temporary differences or
unutilized loss carryforwards will be offset. The valueof deferred tax assets is tested for impairment oneach balance sheet date, and a reduction is made in
the event that it is no longer probable that a sufficientamount of taxable profit is available to utilize all or a
portion of deferred tax assets.
Deferred tax assets and liabilities are estimated using
the tax rates expected to be applied for the period inwhich assets are utilized or liabilities settled, basedon the tax rates (and tax legislation) applicable or
expected to be applicable on the balance sheet date.
Deferred tax assets and liabilities are recognized net in
the balance sheet, provided that payment of tax will bemade in the net amount.
CRITICAL ESTIMATES AND ASSUMPTIONSThe Group makes estimates and assumptions
concerning the future. The estimates made foraccounting purposes may deviate from actual
outcome. Estimates and assumptions that may
constitute a risk of essential adjustments of recognizedvalues appear from the following.
Estimation of value and useful life for intangible fixed
assets
The intangible assets in Permobil include goodwill,trademarks, concessions, patents and capitalized

16 The Year-End Report 2021

expenditures for research and development. The
estimation of remaining useful life is done on a yearlybasis. Impairment testing is done if indications of achange in value or remaining useful life occur.
Impairment testing of intangible fixed assets withindefinite useful life
The Group is testing intangible assets with indefinite
useful life for impairment annually in accordance withthe accounting principle described above. Several
estimations need to be done in the testing process,primarily related to:• Forecasts, including operating margins and sales
growth• Discount rates• Growth rates used to extrapolate cash flow beyond
the forecast period
Capitalization of expenditures for research anddevelopment
The Group invests significant amounts in researchand development, of which some are reported as
intangible fixed assets. The reporting of development
expenditures as asset requires estimations that the
product will be useful, technical and commercial, andthat future financial benefits are likely. Amortizationof capitalized development expenditures is done overan estimated remaining useful life of maximal 6 years.
The estimated sales volume and remaining useful life
can be revaluated which can lead to a need for writedown.
Inventory
The Group is performing physical stocktaking of
inventory in the production units at a minimumof four times per year in connection with thequarterly closings. At the stocktaking, estimations ofobsolescence are done based on revised sales forecasts
and product lifecycles.
Warranty provisions
The Group is making provisions for warranty costs
expecting to occur after balance sheet date andrelating to products sold before the balance sheet
date. Existing commitments and current warranty
costs are parameters affecting the calculated warranty
provision.
RISK AND RISK MANAGEMENT
Currency rate risk
The Group is exposed to currency risks through its
operations in foreign subsidiaries and the structure of
its loan financing. Primary risks are associated with thefollowing currencies: EUR, USD, NOK, AUD and CAD.
The Group's hedging policy states that the Groupshall no longer enter forward currency contracts.

market conditions, the Group could have difficulties inentering new bank loan agreements and be required touse a larger part of its cash flow for interest and debt
repayment.
EXCHANGE RATE EXPOSURE
The average year rates for the major currencies were as
follows:

The Group's opinion is that currency exposures areminimized through an even distribution of production(outflow) and sales (inflow) in the, for the Group,material currencies SEK, USD, EUR, CAD and NOK.
Interest rate risk
The interest risk of the Group is associated with shortand long-term borrowing. Borrowings at floatinginterest rates constitute a risk in cash flow. This risk
is partly mitigated by cash funds at floating interest
rates. Borrowings at fixed interest rates constitute a fairvalue risk.
Liquidity risk
The Group is exposed to liquidity risks, defined as therisk of not having sufficient liquid funds at a given
point in time to meet its commitments, or not being
able to pursue operations in the most effective manner.
Permobil is managing that risk through follow-ups ofliquidity, forecasts, and currently retaining sufficientliquid funds to meet the requirements of the current
operations, in the short term as in the long term.
Credit risk
The Group’s credit risk relates to the risk for acounterpart not being able to fulfill its obligations
towards the Group, which could result in recognitionof a loss from bad debt. The credit risk varies between
markets, due to different local market conditions andsales channels. Each subsidiary is responsible foranalyzing and follow-up on the credit risk for eachcustomer, and if necessary, take action.
Financing risk
The Group is financing its operations partiallywith bank loans. Some loan agreements containfinancial undertakings including generally accepted
restrictions (covenants). This debt result in certain
risk exposure, for instance in case of heavily changed

Currencies

Rate

SEK / USD

8,58

SEK / EUR

10,14

SEK / CAD

6,85

SEK / AUD

6,44

SEK / NOK

1,00

The majority of Permobil’s revenue is in US Dollar
and Euro. Significant shifts in the SEK/USD and SEK/EUR rates will therefore have a substantial impact
on revenue for the Group. The table below shows theimpact on revenue from a +/- 10% change in the SEK
against the major currencies based on the last twelve
months’ trading.
SEK million-10%

Actual

+10%

US

2 110

2 345

2 579

Euro zone

426

474

521

Australia

179

199

219

Canada

268

298

328

Norway

171

189

209

Group

3 712

4 062

4 413

RELATED PARTY TRANSACTIONS
Related parties are Instoria Holding AB (556919-2783),
Stiftelsen Permobil MSPV (802478-3907), Instoria
MSPV 2018 AB (559163-0818), Instoria 2019 AB (5591839153), Instoria 2020 AB (559226-7669), Instoria 2021
AB (559248-2193) and Stiftelsen Permobil MSPV II(802480-8555). Related party transactions refer tointerest expense, long-term loan and accrued interest
expense with Instoria Holding AB.
The Group had SEK 0 m (1) revenue from relatedparties in 2021. Expenses to related parties’ totals to
SEK 106 m (159m) for the year.
The Group had per the balance sheet date SEK 3 059 m(2 956m) of non-current liabilities and SEK 63 m (61m)of current liabilities to related parties.

SEK million

Note

2021

2020

Inventory

714

437

Accounts receivable

750

580

Accounts payable

-325

-252

Total net working capital

1 139

766

% of net Sales

28%

19%

Net working capital

Cash conversion cycle
Days of inventory held

(1)

188

149

Days of sales outstanding

(2)

60

64

Days of payables outstanding

(3)

-94

-90

153

123

Conversion cycle

1. DIH represents inventory (average balance LTM) divided by direct material (LTM) x 365
2. DSO represents account receivables (average balance LTM) divided by external revenue (LTM) x 365
3. DPO represents account payables (average balance LTM) divided by direct material (LTM) x 365

18 The Year-End Report 2021

Anders Andrae inspired a group of wheelchair users to make a 90
km off-road journey (Den långa vandringen) in northern Sweden.

For further information, please contact:groupfinance@permobil.com

The Year-End Report 2021