Interim Report Q1

partly offset by funding investments in new business, discontinuation of contracts and continued investments in new technology and processes enhancing...

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Interim Report Q1 - Q3 2019

Contents MANAGEMENT’S REVIEW Letter from the CEO Quarterly highlights Key figures Quarterly results Performance by business unit Management’s statement

FINANCIAL STATEMENTS 3 4 5 6 9 15

Primary statements 16 Sections 22

Numbers in brackets refer to same period 2018

Falck Interim Report Q1 - Q3 2019

2

Management’s review

Letter from the CEO

We have completed our financial turnaround With improved performance for six consecutive quarters, we complete the two-year financial turnaround at Falck. We move from a state of critical need for turning around our business financially to a phase where stabilising our business and winning new customers will take centre stage. In the third quarter, our efficiency and cost optimisation programme continued to contribute to the improved financial performance. Profitability was, however, partly offset by funding investments in new business, discontinuation of contracts and continued investments in new technology and processes enhancing our global operating models. Underlying EBITA margin ended at 4.9% (5.5%) for the quarter, while reported EBITA margin improved from 3.5% to 4.9%. Starting up new contracts puts short-term pressure on our underlying profitability but increases in importance as we focus on the mid to long term. In the third quarter, we entered into several new healthcare contracts, among others

Falck Interim Report Q1 - Q3 2019

with the Stockholm County Council, and were awarded contracts with Glasgow and Aberdeen Airports to provide firefighting services from December 2019. In July 2019, we went live with our largest US contract so far, providing 911 emergency services to the 1.6 million citizens of the County of Alameda, California. These new contracts are a vote of confidence in Falck and our offerings.

Meeting this ambition will be our guiding star in the years to come.

Jakob Riis President and CEO

Over the past two years, we have improved our reported EBITA margin from 0% in 2017 to 6.5% year-to-date in 2019. Free cash flow for the nine-month period is positive by DKK 488 million, and the debt level including lease liabilities has improved from DKK 5,421 million in 2017 to DKK 4,224 million. Although we are leaving the turnaround phase, we continue to push for ongoing efficiency and cost optimisation as we see significant potential to further increase our competitiveness. Our ambition is to lead our industry, as we aim to be our customers’ preferred emergency response and healthcare provider. We can only succeed in this if we are a great place to work for our current and future employees.

3

Management’s review

Quarterly highlights Revenue

EBITA

DKK million

DKK million

Key events in Q3 2019

4,000

3,488

3,403

3,403

3,491

3,000

200

191

2,000

100

1,000

50

0

0

Q3 2019 Q3 2018 Reported

166

166

150

123

Q3 2019 Q3 2018

Q3 2019 Q3 2018

Reported

Fixed currencies

Free cash flow

Economic profit

DKK million

DKK million

0

150 116 100

88

-150 -300

50

-450

0 Q3 2019 Q3 2018 Reported

Falck Interim Report Q1 - Q3 2019

(259) (382) Q3 2019 Q3 2018 Reported

Revenue at DKK 3,403 million • Revenue was DKK 3,403 million (DKK 3,488 million). In fixed currencies, revenue declined by 2.5% compared to Q3 2018. • New ambulance contracts in the US, Sweden and the UK contributed positively to revenue whereas divestments and contract pruning in Ambulance and lower activity in Healthcare had a negative impact.

Q3 2019 Q3 2018 Underlying

Profitability at DKK 166 million • Reported EBITA was DKK 166 million (DKK 123 million) with an underlying EBITA margin of 4.9% (5.5%). • Cost optimisation and efficiency initiatives contributed positively to EBITA but were partly offset by investments in technology and processes enhancing Falck’s global operating models as well as by costs related to start-up and discontinuation of contracts. Positive profit for the period and free cash flow, improved economic profit and net debt level • Profit for the period from continuing operations was positive at DKK 46 million (negative at DKK 53 million), primarily driven by improved EBITA and lower net financial items. • Free cash flow was DKK 116 million (DKK 88 million), impacted positively by IFRS 16 reclassifications, partly offset by start-up costs and working capital build-up related to new contracts in Ambulance. • Economic profit improved to negative DKK 259 million (negative at DKK 382 million) due to improved EBITA. • Net interest-bearing debt including lease liabilities was reduced from DKK 4,292 million end of Q2 2019 to DKK 4,224 million end of Q3 2019.

4

Management’s review

Key figures

DKK million

Q3 2019

Q3 20181)

Q1-Q3 2019

Q1-Q3 20181)

20181)

Income Statement Revenue

3,403

3,488

10,376

10,606

14,043

Operating profit before other items (EBITA)

166

123

675

291

275

Operating profit (EBIT)

124

70

339

113

(134)

(324)

(439)

Net financial items Profit for the period from continuing operations Profit for the period from discontinued operations

7

(106)

28

46

(53)

43

(206)

(517)

-

(428)

-

(398)

(398)

Balance sheet Total assets

13,268

12,378

13,268

12,378

12,337

Net operating assets

8,712

7,695

8,712

7,695

7,103

Total equity

4,532

2,510

4,532

2,510

2,207

-

2,164

-

2,164

2,220

4,224

5,239

4,224

5,239

4,961

Cash flows from operating activities

120

68

446

380

764

Free cash flow

116

88

488

257

645

Investments in intangible assets and property, plant and equipment

(31)

(44)

(424)

(259)

(365)

Subordinated shareholder loans Net interest-bearing debt Cash flows and investments

Key figures Economic profit

n/a

n/a

(259)

(382)

EBITA margin (%)

4.9

3.5

6.5

2.7

(252) 2.0

Cash conversion rate (%)

69.7

70.7

72.2

88.3

234.7

Equity ratio (%)2)

34.1

37.8

34.1

37.8

35.9 2.62

Net interest-bearing debt to EBITDA (factor)1)

n/a

n/a

1.95

3.12

EBITDA

331

260

1,151

725

937

23,919

25,977

23,919

25,977

25,583

FTEs

Falck Interim Report Q1 - Q3 2019

1) Excluding impact from the IFRS 16 reporting standards, cf. section 1. 2) Equity ratio includes subordinated shareholder loans, converted to equity in Q1 2019. In 2018, Falck Safety Services and Danish medical clinics were presented as discontinued operations and assets classified as held for sale. See section 3. In general, the financial and nonfinancial data are stated excluding discontinued operations.

5

Management’s review

Quarterly results In the third quarter of 2019, revenue was 2.5% lower than in Q3 2018, whereas reported EBITA ended at DKK 166 million. Profit for the period and free cash flow were positive, and economic profit and net debt level improved. Financial results Q3 2019

Operating profit

Revenue

Reported operating profit before other items (EBITA) was DKK 166 million (DKK 123 million).

Reported revenue amounted to DKK 3,403 million (DKK 3,488 million), resulting in a revenue decline of 2.5% in fixed currencies compared to Q3 2018. New contracts in Ambulance and effective price management in both Ambulance and Assistance contributed positively to revenue. Key drivers of the decline were divestments and contract pruning in Ambulance. In addition, lower activity in Healthcare impacted revenue negatively.

Cost of services Cost of services decreased to DKK 2,701 million (DKK 2,763 million) excluding nonrecurring costs.

Sales and administrative expenses Sales and administrative expenses decreased to DKK 551 million (DKK 611 million), driven by Falck’s efficiency and cost optimisation programme.

Underlying EBITA was DKK 166 million (DKK 191 million), yielding an underlying EBITA margin of 4.9% (5.5%). In Q3 2018, underlying EBITA was adjusted for non-recurring costs mainly related to changes in accounting estimates. The improvement in EBITA was driven by efficiency measures and effective price management across business units but was partly offset by investments in technology and processes enhancing Falck’s global operating models as well as by costs related to start-up and discontinuation of contracts.

Profit for the period Profit for the period from continuing operations was positive at DKK 46 million (negative at DKK 53 million), primarily driven by improved EBITA and lower net financial items due to reduced net interest-bearing debt and conversion of shareholder loans. Profit for the period from discontinued operations was DKK 0. In Q3 2018, profit

Falck Interim Report Q1 - Q3 2019

from discontinued operations was negative at DKK 428 million, mainly related to loss from divestment of Falck Safety Services and Danish medical clinics.

Free cash flow Free cash flow was DKK 116 million (DKK 88 million). Reclassifications from the IFRS 16 reporting standards had a positive effect of DKK 82 million as lease payments are now classified as financing activities. This was offset by primarily start-up costs and working capital build-up related to new contracts in Ambulance.

Economic profit Economic profit was negative at DKK 259 million (negative at DKK 382 million) including IFRS 16 implementation. The improvement was driven by improved EBITA. Implementation of the IFRS 16 reporting standards impacted economic profit negatively by DKK 161 million. Net operating assets increased to DKK 8,712 million (DKK 7,695 million), mainly driven by the implementation of IFRS 16 (DKK 1,683 million), which was partly offset by divestments and regular depreciations and amortisations.

Equity and loans Net interest-bearing debt including lease liabilities was DKK 4,224 million end of Q3 2019 compared to DKK 4,292 million end of Q2 2019. Equity ratio was 34.1% in Q3 2019 compared to 33.7% in Q2 2019.

Financial results Q1-Q3 2019 Year-to-date revenue was DKK 10,376 million (DKK 10,606 million), resulting in a 2.3% revenue decline in fixed currencies compared to Q1-Q3 2018. New contracts in Ambulance and effective price management in Ambulance and Assistance contributed positively to revenue and are expected to improve revenue further in Q4 2019. The decline in revenue was primarily driven by divestments and discontinuation of contracts in Ambulance. In addition, a lower subscription volume in Assistance had a negative impact on revenue. Reported operating profit before other items (EBITA) was DKK 675 million (DKK 291 million). Reported EBITA was positively impacted by a one-off gain of DKK 65 million from the sale of 6

Management’s review

office buildings in Denmark in Q1 2019 and by DKK 12 million due to changes in recognition of lease assets under the IFRS 16 reporting standards. Adjusted for the one-off gain and IFRS 16 standards implemented, underlying EBITA was DKK 598 million (DKK 494 million), yielding an underlying EBITA margin of 5.8% (4.7%). Improvements to the underlying profitability were primarily driven by efficiency measures and effective price management across business units, but partly offset by investments in technology and processes enhancing Falck’s global operating models as well as by costs related to start-up and discontinuation of contracts.

from discontinued operations was negative at DKK 398 million, mainly related to loss from divestment of Falck Safety Services and Danish medical clinics. Free cash flow amounted to DKK 488 million (DKK 257 million). The improvement was mainly driven by improved earnings in all business units and a lower level of investment in fixed assets. Sale of properties (DKK 89 millioin) and interest and amortisations on finance lease liabilities (DKK 269 million) had a positive impact, offset by settlement costs and legal fees following the ruling by the Danish Competition Council as well as by start-up costs related to new contracts.

of the survey will be communicated to the employees and acted upon during Q4 2019. Falck works diligently to build trust with customers, employees and society at large. In the quarter, the roll-out continued of the global Code of Conduct e-learning, which has now been launched in the US, Latin America, Germany and the Nordic and Baltic countries. Falck appointed two new members of the Executive Management team in the quarter. In August, Elisabeth Milton started as new SVP, Head of Global HR. Elisabeth has executive experience from the service industry, including 20 years with SAS, and has led major transformations. In September, Michala Fischer-Hansen joined as new EVP of Assistance. Michala has close to 20 years of commercial experience from Novo Nordisk.

Profit for the period from continuing operations was positive at DKK 43 million (negative at DKK 206 million), primarily driven by improved EBITA and lower net financial items due to reduced net interest-bearing debt and conversion of shareholder loans. This was partly offset by the negative impact from special items of DKK 193 million in Q2 2019, covering settlement costs, estimated fine and legal fees following a ruling by the Danish

Operational results In the quarter, Falck entered into a number of new contracts across business units. In Healthcare, these included a contract with the Stockholm County Council for psychological crisis support. In Industrial Fire Services, Falck was awarded a contract covering the outsourcing of the fire brigades of Glasgow

Global operating models

Competition Council and Falck’s self-cleaning programme. Income taxes for the period were impacted by non-deductible costs related to special items.

and Aberdeen Airports.

for a considerable period of time. The roll-out of global operating models encompasses both installing new processes and investing in technology and IT systems.

Profit for the period from discontinued operations was DKK 0. In Q1-Q3 2018, profit Falck Interim Report Q1 - Q3 2019

the entire organisation. In the quarter, IT focused on mapping the complex IT application landscape with a view to decommissioning applications, renegotiating contracts, simplifying and saving costs. The outsourcing of infrastructure and IT services progressed and is expected to be finalised within Q4 2019. In Ambulance, implementation continued of the global dispatch system and roll-out commenced of the global planning system. The global fleet management system, which also covers Assistance vehicles, is fully operational. Global models also continued to be implemented in Quality Management, in HR and in Finance, where the outsourcing of transactional finance processes progressed further in the US and Europe.

New contracts

People and trust In September, Falck launched its second global engagement survey. The survey and feedback will enable Falck to take action and create a great place to work for everyone. The results

In the quarter, Falck continued to roll-out global operating models, which will allow Falck to operate under one brand with shared values, processes and systems. However, the roll-out has proven more complex than originally estimated and is expected to run

Annualised EBITA effect of efficiency programme DKK million 600 400 200 0

The magnitude of Falck’s IT transformation influences the roll-out of global systems in

Q1 2018

Q2

Q3

Q4

Q1 2019

Q2

Q3

7

Management’s review

Efficiency programme

Outlook for 2019

Falck’s efficiency and cost optimisation programme was launched in 2017 with total targeted savings of yearly DKK 1 billion with full effect in 2020. The efficiency programme builds on three pillars: operational optimisation across business units, reduction of overhead costs and procurement initiatives.

Falck has adjusted its outlook and now expects a revenue decline of approximately 1% for the full year 2019, due to divestments, contract pruning and a lower subscription volume, partly offset by new contracts primarily in Ambulance.

In Q3 2019, focus was on restructuring the global organisations of HR, IT and Finance as well as increasing operational efficiencies primarily in Ambulance and Assistance. Within the procurement programme, emphasis was on installing strategic suppliers for Falck’s fleet, including financing, and on projects within marketing, legal and medical consumables. In the quarter, the efficiency programme had a positive impact on EBITA of DKK 60 million (Q1-Q3 2019: DKK 250 million), additional to the effects realised in 2018. Since its beginning in 2018, the programme has realised annual run-rate EBITA effects of DKK 560 million by the end of Q3 2019 . Exiting the quarter, the number of full-time employees (FTEs) was 23,919 (25,977). The reduction was caused by redundancies following cost optimisation, by divestments and by discontinuation of contracts.

Falck Interim Report Q1 - Q3 2019

Falck expects to improve its operating profit (EBITA) compared to 2018 (DKK 275 million). The continuing efficiency programme is expected to contribute significantly to improving profitability in 2019, with impact from operational optimisation, reduction of overhead costs as well as procurement initiatives. Costs related to Falck’s restructuring activities are expected to continue into Q4 2019. These include costs related to divestments, transformation costs and costs related to building global operating models. Profit for the year will be negatively impacted by settlement costs following a ruling by the Danish Competition Council as well as by an estimated fine from SØIK and legal fees in relation to the ruling and Falck’s self-cleaning programme, as announced in Q2 2019.

8

Management’s review

Performance by business unit

Ambulance Profitability improved driven by efficiency and cost optimisation initiatives but was impacted by one-off costs related to start-off and close-down of contracts. Revenue declined due to divestments and discontinuation of contracts, partly offset by new contracts. Financial performance Q3 2019 Revenue Reported revenue was DKK 1,974 million (DKK 1,985 million), resulting in a revenue decline of 1.1% in fixed currencies. New fixed-price and pay-on-use contracts mainly in the US, Stockholm and the UK contributed positively to revenue, whereas there was a negative impact from divestment of ambulance businesses in Finland and Switzerland and from discontinuation of Falck’s ambulance contract in Poland. Revenue is expected to increase in Q4 2019 through the new contracts.

In the US pay-on-use business, the number of services decreased by 9% mainly due to contract pruning, but revenue was positively impacted by the start-up of the Alameda contract on 1 July. The decrease in number of services was offset by effective price management and the introduction of a quality assurance fee programme in California. Revenue in the private subscription business in Latin America was on par with Q3 2018.

Operating profit Reported operating profit before other items (EBITA) increased to DKK 103 million (DKK 33 million) with an underlying EBITA margin

Key figures DKK million Revenue EBITA EBITA margin (%) Free cash flow Economic profit FTEs

Falck Interim Report Q1 - Q3 2019



Q3 2019

Q3 2018 Q1-Q3 2019 Q1-Q3 2018 2018

1,974

1,985

5,789

5,812

7,659

103

33

355

174

192

5.2

1.7

6.1

3.0

2.5

125

136

302

222

492

n/a

n/a

44

17,077

18,810

17,077

(162) 18,810

(66) 18,511

9

Management’s review

of 5.2% (4.7%). In Q3 2018, underlying EBITA was adjusted for non-recurring costs mainly related to changes in accounting estimates. The increase in EBITA was driven by efficiency and cost optimisation initiatives, effective price management and contract pruning, mainly in Denmark and the US. There was a positive impact from the quality assurance fee in California, whereas start-up costs for the new contract with Alameda County, California, had a negative impact on EBITA. Additionally, there was a negative impact from a provision related to the close-down of contracts in Slovakia at year end.

In Slovakia, Falck started negotiations concerning transfer agreements with the ambulance providers taking over Falck’s contracts when they expire during 2020.

Financial performance Q1-Q3 2019 Year-to-date reported revenue was DKK 5,789 million (DKK 5,812 million), resulting in a revenue decline of 1.1% in fixed currencies. The decline in revenue was driven by divestments and discontinuation of contracts

in non-core markets and partly offset by new contracts in core markets, which are expected to improve revenue further in Q4 2019. Reported operating profit before other items (EBITA) increased to DKK 355 million (DKK 174 million) with an underlying EBITA margin of 6.1% (4.6%). In Q1-Q3 2018, underlying EBITA was adjusted for non-recurring costs mainly related to changes in accounting estimates. The increase in EBITA was driven by efficiency and cost optimisation initiatives across the business, effective price management and contract pruning. EBITA was positively

impacted by new contracts but negatively impacted by divestments and discontinuation of contracts as well as by start-up costs related to new contracts. Free cash flow increased to DKK 302 million (DKK 222 million), mainly driven by improved earnings, improved cash collection in Denmark and lower investments, but negatively impacted by working capital build-up and start-up costs related to new contracts, mainly in the US and the UK.

Free cash flow Free cash flow was DKK 125 million (DKK 136 million). Free cash flow was positively impacted by improved performance and improved net working capital in Denmark, but negatively impacted by start-up costs and working capital build-up related to the Alameda contract.

Revenue by contract type Q1-Q3 2019 Private subscriptions*** 8%

approximately 30% of revenue in Ambulance, and the development is positive. In July 2019, Falck went live with its largest US contract so far, providing 911 emergency services to the 1.6 million citizens of the County of Alameda, California.

Falck Interim Report Q1 - Q3 2019

EBITA

DKK million

DKK million

2,000

1,996 1,974

1,985 100

Business update In the quarter, the US market constituted

Revenue

1,974

150

100

1,500

103

103

100

Pay-on-use contracts** 37%

Fixed contracts* 55%

94

1,000 50 33

500

0

0

* primarily in Denmark, Sweden, Spain and Slovakia ** primarily in the US, the UK and Germany *** in Colombia-based Group EMI

Q3 2019 Q3 2018

Q3 2019 Q3 2018

Q3 2019 Q3 2018

Q3 2019 Q3 2018

Reported

Fixed currencies

Reported

Underlying

10

Management’s review

Performance by business unit

Assistance Profitability improved driven by efficiency and cost optimisation initiatives. Revenue declined due to fewer subscriptions.

Financial performance Q3 2019 Revenue Reported revenue was DKK 690 million (DKK 715 million), resulting in a revenue decline of 3.1% in fixed currencies. Effective price management offset the decline in revenue, which was driven by fewer subscriptions in Denmark and Sweden. The number of trips in the pay-on-use business declined by 13% but revenue per trip increased.

Operating profit Reported operating profit before other items (EBITA) increased to DKK 122 million (DKK 114 million), yielding an EBITA margin of 17.6% (16.0%). The increase in EBITA was driven by efficiency and cost optimisation initiatives and effective price management, partly offset by decrease in subscriptions and pay-on-use activity. Efficiency initiatives carried out in 2018 continued to contribute to improving profitability as they materialised, including

Key figures DKK million



Q3 2019

Q3 2018 Q1-Q3 2019 Q1-Q3 2018 2018

Revenue

690

715

2,144

2,270

EBITA

122

114

392

318

415

EBITA margin (%)

17.6

16.0

18.3

14.0

13.9 282

Free cash flow Economic profit FTEs

Falck Interim Report Q1 - Q3 2019

49

(6)

2,993

396

200

n/a

n/a

112

30

37

1,531

1,872

1,531

1,872

1,728

11

Management’s review

increased use of franchisers and subcontractors, better utilisation of call centres and optimisation of the network of Falck stations in Denmark.

Free cash flow Free cash flow was DKK 49 million (negative at DKK 6 million). The improvement was driven by improved performance and a higher level of prepayments.

Financial performance Q1-Q3 2019 Year-to-date reported revenue was DKK 2,144 million (DKK 2,270 million), resulting in a decline of 5.2% in fixed currencies. Revenue was positively impacted by effective price management, but negatively impacted by fewer subscriptions in Denmark and Sweden and lower activity levels in the pay-on-use business due to mild weather conditions.

Reported operating profit before other items (EBITA) increased to DKK 392 million (DKK 318 million), yielding an EBITA margin of 18.3% (14.0%).

Free cash flow increased to DKK 396 million (DKK 200 million), mainly due to improved performance, a higher level of prepayments and lower investment in fixed assets.

The increase in EBITA was driven by efficiency and cost optimisation initiatives, effective price management and lower frequency in the subscription business due to continuing mild weather, which was partly offset by lower frequency of use in the pay-on-use business.

Business update In August, Falck Teknik (Falck Technical Services) signed a contract with the Danish Defence. Falck Teknik, which delivers fire equipment to public and private institutions, will provide fire extinguishers to the Danish Defence for the next four years. The tender process was completed for roadside assistance services for the insurance company Gjensidige in Norway, and Falck’s contract with Gjensidige will expire in Q1 2020. The roadside assistance centre in Denmark relocated to modern facilities in Vejle in order to create a new digitalised and centralised assistance centre to the benefit of both customers and employees. During August and September, Assistance launched a new pipeline of commercial initiatives to advance its marketing and customer-focused activities. Falck Interim Report Q1 - Q3 2019

Revenue by contract type Q1-Q3 2019

Revenue

EBITA

DKK million

DKK million

150

900

Fixed contracts*** 15%

690

Pay-on-use contracts** 24%

715

690

122

712

122 114

600

100

300

50

114

Private subscriptions* 61%

* primarily in Denmark and Sweden ** with insurance and automotive companies in the Nordics and Baltics *** long-term public firefighting contracts in Denmark

0

0

Q3 2019 Q3 2018

Q3 2019 Q3 2018

Q3 2019 Q3 2018

Q3 2019 Q3 2018

Reported

Fixed currencies

Reported

Underlying

12

Management’s review

Performance by business unit

Healthcare A decrease in profitability was driven by seasonality, while revenue declined due to termination of contracts and lower activity levels in the staffing business.

Financial performance Q3 2019

(DKK 0 million), yielding an EBITA margin of negative 1.8% (0.0%).

Revenue Reported revenue was DKK 507 million (DKK 547 million), resulting in a revenue decline of 6.3% in fixed currencies. Revenue was negatively impacted by the termination of contracts with insurance companies in Denmark as well as by lower activity levels in the staffing business in Denmark.

Operating profit Reported operating profit before other items (EBITA) decreased to negative DKK 9 million

The decrease in EBITA was caused by a higher impact of seasonality, where activity levels significantly decrease over the summer period, especially impacting Sweden.

Free cash flow Free cash flow was negative at DKK 74 million (negative at DKK 45 million) in line with business seasonality. Free cash flow was negatively impacted by repayment of deposit following the termination of an insurance company contract.

Business update In Q3, Falck entered into several new contracts with new customers. In Sweden, this included a contract with the Stockholm County Council, delivering psychological crisis support to 45,000 employees, as well as a contract for physical treatments to 65,000 policy holders for a major insurance company. In Denmark, Falck entered into contracts with the municipalities of Greve and Sønderborg, providing back-in-job services to citizens together with the job centres. In addition, Healthcare entered into two new contracts with Danish insurance and pension companies, providing interdisciplinary interventions with the aim of preventing long-term-absence.

Key figures DKK million Revenue EBITA



Q3 2019 507

547

1,814

2,466

56

(78)

(115)

(1.8)

(0.0)

3.1

(4.3)

(4.6)

Free cash flow

(74)

(45)

(27)

(106)

17

FTEs

Falck Interim Report Q1 - Q3 2019

-

1,764

EBITA margin (%) Economic profit

(9)

Q3 2018 Q1-Q3 2019 Q1-Q3 2018 2018

n/a

n/a

2,304

2,491

(52) 2,304

(79) 2,491

(101) 2,452

Throughout the quarter, Healthcare continued to optimise and commercialise the organisation in order to improve overall profitability. In Sweden, more customers began using Falck’s digital services, specifically within the stress treatment area.

Financial performance Q1-Q3 2019 Year-to-date reported revenue was DKK 1,764 million (DKK 1,814 million), resulting in a revenue decline of 1.3% in fixed currencies. Revenue was negatively impacted by decrease in pay-on-use volumes in Sweden and lower activity in the staffing business in Denmark but positively impacted by increased activity in Norway. Reported operating profit before other items (EBITA) increased to DKK 56 million (negative at DKK 78 million) with an underlying EBITA margin of 3.1% (0.6%). In Q1-Q3 2018, underlying EBITA was adjusted for non-recurring costs mainly related to changes in accounting estimates. The increase in EBITA was caused by efficiency and cost optimisation initiatives across the business. Free cash flow was negative at DKK 27 million (negative at DKK 106 million). Free cash flow was positively impacted by improved performance. 13

Management’s review

Performance by business unit

Portfolio Businesses Profitability improved driven by new business and efficiency and cost optimisation initiatives in both service areas, while revenue increased despite a major divestment.

Portfolio Businesses consist of the two service areas Industrial Fire Services and Global Assistance.

Financial performance Q3 2019

Operating profit Reported operating profit before other items (EBITA) was DKK 36 million (DKK 19 million) with an underlying EBITA margin of 11.9% (8.8%). In Q3 2018, underlying EBITA was adjusted for non-recurring costs mainly related to changes in accounting estimates.

Revenue Reported revenue was DKK 297 million (DKK 295 million), resulting in a flat revenue development of 0.3% in fixed currencies. Revenue was positively impacted by new contracts in Industrial Fire Services and increased activity in Global Assistance, and negatively by the divestment of Falck Fire Academy in the Netherlands in Q3 2018.

The increase in EBITA was driven by new business and efficiency and cost optimisation initiatives in both service areas, but partly offset by the divestment of Falck Fire Academy in the Netherlands in Q3 2018.

Free cash flow

Revenue EBITA EBITA margin (%) Free cash flow Economic profit FTEs

Falck Interim Report Q1 - Q3 2019



Q3 2019 297

Business update In the UK, Industrial Fire Services was awarded a major contract covering the outsourcing of the fire brigades of Glasgow and Aberdeen Airports. This contract is the first in the UK within the aviation segment, where Falck is already providing fire services in Brazil, Spain, France, Portugal and Norway. In the quarter, Global Assistance went live with a comprehensive duty-of-care membership with a new corporate customer providing medical, security and travel tracking services to their global workforce of 4,400 employees.

Free cash flow improved to DKK 43 million (DKK 22 million), mainly driven by improved

Key figures DKK million

performance and improved invoicing and cash collection in Global Assistance.

Q3 2018 Q1-Q3 2019 Q1-Q3 2018 2018 295

880

884

1,162

36

19

75

46

43

11.9

6.7

8.5

5.2

3.7

43

22

81

(41)

86

n/a

n/a

15

(40)

(12)

2,668

2,654

2,668

2,654

2,726

Financial performance Q1-Q3 2019

Revenue was positively impacted by new contracts in Industrial Fire Services and increased activity in Global Assistance, and negatively by the divestment of Falck Fire Academy in the Netherlands in Q3 2018. Reported operating profit before other items (EBITA) was DKK 75 million (DKK 46 million) with an underlying EBITA margin of 8.5% (5.9%). In Q1-Q3 2018, underlying EBITA was adjusted for non-recurring costs mainly related to changes in accounting estimates. The increase in EBITA was driven by new business and efficiency and cost optimisation initiatives in both service areas, but partly offset by the divestment of Falck Fire Academy in the Netherlands in Q3 2018. Free cash flow improved to DKK 81 million (negative at DKK 41 million), mainly driven by improved performance, lower investment in fixed assets and improved cash collection in both service areas.

Year-to-date reported revenue was DKK 880 million (DKK 884 million), resulting in a revenue decrease of 1.0% in fixed currencies. 14

Management’s review

Management’s statement The Board of Directors and the Executive Committee have today considered and approved the interim report of Falck A/S for the period 1 January 2019 – 30 September 2019. The interim report has not been audited or reviewed by the company’s independent auditors.

The interim report has been prepared in accordance with IAS 34 ”Interim Financial Reporting” as adopted by the EU and additional requirements under the Danish Financial Statements Act.

liabilities and financial position as at 30 September 2019 and of the results of the Group’s operations and cash flows for the financial period 1 January – 30 September 2019.

In our opinion, the interim financial statements give a true and fair view of the Group’s assets,

Furthermore, in our opinion, the Management’s review includes a fair review of developments in the operations and financial position of the

Tor Magne Lønnum CFO

Jakob Bomholt EVP, Ambulance

Peter Schütze Chairman

Lene Skole Deputy Chairman

Lars Frederiksen

Niels Smedegaard

Dorthe Mikkelsen

Søren Thorup Sørensen

Vagn Flink Møller Pedersen

Henrik Villsen Andersen

Allan Rensgaard

Group, the financial results for the period and the Group’s financial position. Besides what has been disclosed in the interim report, no changes in the Group’s most significant risks and uncertainties have occurred relative to the disclosures made in the 2018 Annual Report.

Copenhagen, 28 October 2019

Executive Committee:

Jakob Riis President and CEO

Board of Directors:

Falck Interim Report Q1 - Q3 2019

15

Financial statements

Income statement DKK million Revenue

Section 2

Cost of services Gross profit Sales and administrative expenses Other operating income and expenses, net Operating profit before other items (EBITA) Special items

Q3 2019

Q3 2018

Q1-Q3 2019

Q1-Q3 2018

3,403

3,488

10,376

10,606

14,043

(2,701)

(2,763)

(8,179)

(8,530)

(11,380)

2018

702

725

2,197

2,076

2,663

(551)

(611)

(1,631)

(1,836)

(2,473)

15

9

166

123

-

-

109

51

85 275

675

291

(193)

(11)

(14) (233)

Amortisation of customer contracts

(42)

(53)

(143)

(167)

Operating profit (EBIT)

124

70

339

113

28

Gains/losses from divestments of enterprises

(22)

(43)

2

(51)

(56)

(1)

3

(2)

1

10

27

29

34

Income after tax from associates and joint arrangements

-

Financial income

22

Financial expenses

(15)

Profit before tax

109

Income taxes

(63)

Profit for the period from continuing operations

(116)

(161)

(353)

(473)

(80)

210

(264)

(466)

27

(167)

58

(51)

46

(53)

43

(206)

(517)

-

(428)

-

(398)

(398)

46

(481)

43

(604)

(915)

Shareholders in Falck A/S

55

(474)

24

(594)

(888)

Non-controlling interests

(9)

(7)

19

(10)

(27)

Total

46

(481)

43

(604)

(915)

Profit for the period from discontinued operations Profit for the period

3

Profit for the period attributable to:

Falck Interim Report Q1 - Q3 2019

16

Financial statements

Statement of comprehensive income DKK million Profit for the period

Section

Q3 2019 46

Q3 2018 (481)

Q1-Q3 2019 43

Q1-Q3 2018 (604)

2018 (915)

Actuarial adjustment of pension provisions

-

-

-

1

1

Items that will not be reclassified to the income statement

-

-

-

1

1

Exchange rate adjustment

(18)

(7)

(12)

14

(24)

Value adjustment of currency hedging instruments

-

(5)

4

(3)

(3)

Value adjustment of interest hedging instruments

-

12

9

21

25

Tax on other comprehensive income

(13)

(9)

(13)

(10)

(17)

Items that may be reclassified to the income statement

(31)

(9)

(12)

22

(19)

Other comprehensive income

(31)

(9)

(12)

Total comprehensive income

15

(490)

31

(581)

(933)

­Shareholders in Falck A/S

24

(483)

12

(571)

(906)

Non-controlling interests

(9)

(7)

19

(10)

(27)

Total

15

(490)

31

(581)

(933)

23

(18)

Total comprehensive income attributable to:

Falck Interim Report Q1 - Q3 2019

17

Financial statements

Statement of cash flows DKK million

Section

Q3 2019

Q3 2018

Q1-Q3 2019

Q1-Q3 2018

2018

Operating profit (EBIT)

124

70

339

113

28

Depreciation, amortisation and impairment

165

137

476

434

662

Amortisation of customer contracts

42

143

167

233

(104)

(185)

(129)

117

(15)

(22)

(8)

(4)

(96)

(14)

(34)

Net interest paid

(27)

(51)

(90)

(105)

(120)

Income tax paid

(39)

(18)

(119)

(89)

(145)

Cash flows from operating activities

120

68

446

380

764

Purchase of property, plant and equipment

(24)

(155)

(257)

Change in net working capital

(137)

Transactions with associates

-

Reversal of profit from divestment of non-current assets, net

Sale of property, plant and equipment Purchase of intangible assets

53

(29)

(390)

-

12

376

(7)

(15)

(34)

30

23

126

(104)

(108)

(24)

(38)

Acquisition of subsidiaries and operations

-

(5)

Divestment of subsidiaries and operations

(7)

4

115

-

-

-

-

-

-

(8)

Investments in associates Cash flows from hedging of net investments

-

Cash flows from investing activities

(38)

Transactions with shareholders

-

Transactions with non-controlling interests

(22)

Interest-bearing debt raised

43

-

3

22

8

43

33

(11)

75

(210)

(252)

(1) -

1 (55) 163

(24) 10

(31) 39

Repayment of interest-bearing debt

(102)

(234)

(905)

(898)

(965)

Cash flows from financing activities

(81)

(235)

(796)

(912)

(957)

1

(178)

(275)

(742)

(445)

-

(376)

382

382

1

198

855

499

Cash flows from continuing operations Cash flows from discontinued operations Change in cash and cash equivalents Cash and cash equivalents at beginning of the period Exchange rate adjustment

3

(275) 1,138

(360) 1,077

(63) 1,077

2

(13)

(4)

(9)

Change in cash and cash equivalents

1

198

(275)

(360)

(63)

Cash and cash equivalents related to assets classified as held for sale

-

146

-

132

133

850

845

850

845

1,138

Cash and cash equivalents at the end of the period

Falck Interim Report Q1 - Q3 2019

(6)

-

18

Financial statements

Balance sheet DKK million

Section

30 September 30 September 2019 2018

31 December 2018

Assets Goodwill Other intangible assets Property, plant and equipment Right-of-use assets Investments in associates and joint ventures

Equity and liabilities Share capital

850

1,137

1,008

Other reserves

844

1,012

900

Retained earnings

4,408

2,414

2,182

1,903

222

198

Equity attributable to Falck A/S

4,142

2,173

1,876

54

64 170

42

81

50

10,181

9,153

8,814

27

35

24

453

611

479

1,419

1,393

1,489

29

29

29

Other receivables

309

312

364

Cash and cash equivalents

850

845

1,138

3,087

3,225

3,523

13,268

12,378

12,337

Inventories Contract assets Trade receivables Income tax receivable

Total current assets Total assets

Non-controlling interests Total equity Subordinated shareholder loans

133 (399)

81 (322)

81 (387)

390

337

331

4,532

2,510

2,207

-

2,164

2,220

Loans

3,185

3,682

3,662

Lease liabilities

1,448

109

94

226

225

230

87

46

99

2

10

10

4,948

6,236

6,315 65

Deferred tax Provisions Other payables Total non-current liabilities Loans

59

71

Lease liabilities

382

58

57

Trade payables

605

757

820

Income taxes

133

94

97

Provisions

204

266

244

Contract liabilities

1,092

1,158

1,204

Other payables

1,313

1,228

1,328

Total current liabilities

3,788

3,632

3,815

Total liabilities

8,736

9,868

10,130

13,268

12,378

12,337

Total equity and liabilities

Falck Interim Report Q1 - Q3 2019

31 December 2018

6,424

220

Total non-current assets

30 September 30 September 2019 2018

6,427

44

Other receivables

Section

6,364

134

Deferred tax assets

DKK million

19

Financial statements

Statement of changes in equity 2019 DKK million Equity at 1 January 2019 Change in accounting policies Adjusted equity at 1 January 2019

Share capital 81 81

Hedging reserve (10) (10)

Currency translation reserve

Total

Noncontrolling interests

Equity

2,182

1,876

331

2,207

-

-

-

-

(377)

2,182

1,876

331

2,207

(12)

-

(377) -

Retained earnings

Exchange rate adjustment

-

-

Value adjustment of currency hedging instruments

-

4

-

-

4

-

Value adjustment of interest hedging instruments

-

9

-

-

9

-

Tax on other comprehensive income

-

(3)

(10)

Other comprehensive income

-

10

(22)

Profit for the period

-

-

Total comprehensive income

-

10

Capital increase

(22)

(12)

-

(13)

-

(12)

-

(12) 4 9

-

(13)

-

(12)

24

24

19

43

24

12

19

31

-

2,270

52

-

-

2,218

2,270

Dividend

-

-

-

-

-

(6)

(6)

Change in non-controlling interests’ ownership share

-

-

-

(7)

(7)

46

39

Adjustment of provision for acquisition of non-controlling interests relating to acquisitions after 1 January 2010

-

-

-

(9)

(9)

-

52

-

-

52

10

133

-

Total transactions with owners Total equity movements in 2019 Total equity at 30 September 2019

Falck Interim Report Q1 - Q3 2019

2,202

2,254

(22)

2,226

(399)

4,408

(9)

40

2,294

2,266

59

2,325

4,142

390

4,532

20

Financial statements

Statement of changes in equity 2018 DKK million Equity at 1 January 2018 Change in accounting policies Adjusted equity at 1 January 2018

Share capital 81 81

Hedging reserve (27) (27)

Currency translation reserve (443) (443)

Retained earnings 3,091 (53)

(Continued)

Total

Noncontrolling interests

Equity

2,702

428

3,130

(53)

-

(53)

3,038

2,649

428

3,077 14

Exchange rate adjustment

-

-

14

-

14

-

Value adjustment of currency hedging instruments

-

(3)

-

-

(3)

-

(3)

Value adjustment of interest hedging instruments

-

21

-

-

21

-

21

Actuarial adjustment of pension provisions

-

-

-

1

1

-

Tax on other comprehensive income

-

(4)

(6)

-

(10)

-

(10)

Other comprehensive income

-

14

8

1

23

-

23

Profit for the period

-

-

-

(594)

(594

(10)

(604)

Total comprehensive income

-

14

32

(593)

(571)

(10)

(581)

Dividend

-

-

-

-

-

(12)

(12)

Change in non-controlling interests’ ownership share

-

-

-

20

20

(69)

(49)

Purchase and sale of treasury shares, warrants, etc.

-

-

-

(2)

(2)

Reclassification of exchange rate adjustment from divestment of discontinued operations

-

-

102

Adjustment of provision for acquisition of non-controlling interests relating to acquisitions after 1 January 2010

-

-

-

Total transactions with owners

-

-

102

(7)

Total equity movements in 2018

-

14

134

(600)

(13)

(309)

Total equity at 30 September 2018

Falck Interim Report Q1 - Q3 2019

81

(25)

2,438

-

1

(2)

102

-

102

(25)

-

(25)

95

(81)

14

(476)

(91)

(567)

2,173

337

2,510

21

Financial statements

Section 1

Accounting policies Falck A/S is a limited liability company domiciled in Denmark. The interim report includes the consolidated financial statements of Falck A/S and its subsidiaries (Falck). The interim report has been presented in accordance with IAS 34 “Interim Financial Reporting” as adopted by the EU and additional requirements in accordance with the Danish Financial Statements Act. The interim report does not contain all the information required for the annual report and should therefore be read in conjunction with the 2018 Annual Report. No interim report has been prepared for the parent company. Apart from the adoption of IFRS 16 “Leases”, the accounting policies are consistent with those applied in the 2018 Annual Report, to which reference is made. Key figures and ratios In 2019, the definitions of free cash flow, net operating assets and calculation of economic profit are revised. Other key figures and ratios are unchanged and definitions can be found in Section 1.4 of the 2018 Annual Report. Free cash flow Free cash flow has been revised to include income tax paid.

Falck Interim Report Q1 - Q3 2019

Free cash flow = cash flow from operating activities + net interest paid - purchase of property, plant and equipment - sale of property, plant and equipment - purchase of intangible assets. Net operating assets (NOA) In 2019, net operating assets has been revised to include all assets and liabilities except for investments in associates and joint ventures and net interest-bearing debt. Economic profit In 2019, economic profit is calculated applying average NOPAT and NOA on the Last Four Quarters basis (LFQ). Previously, the applied average NOPAT and NOA were based on the Last Twelve Months basis (LTM). Economic profit = NOPAT - (NOAxWACC) The required return to investors (WACC) is set at a simplified rate of 8% (2018: 8%). Change in presentation of the Income statement The classification in the Income statement is changed as of 1 January 2019 from a presentation by the “nature of expense” to a presentation by the “function of expense”. Falck has changed the classification to better reflect and support the way Falck is managed. Comparative figures are changed accordingly.

Implementation of new accounting standards, amendments and interpretations The following accounting standards, amendments (IAS and IFRS) and interpretations have been implemented from 1 January 2019: • IFRS 16 “Leases” • IFRIC 23 “Uncertainty over income tax treatments” • Amendment to IFRS 9 “Financial instruments” • Amendment to IAS 28 “Investments in Associates and Joint Ventures”. Apart from the impact from IFRS 16, the adoption of new standards, amendments and interpretations has not affected the interim report for 2019.

Falck has applied the modified retrospective approach and comparative figures for 2018 have not been restated. At the date of initial application, lease liabilities have been measured at the present value of the remaining lease payments using the incremental borrowing rate. Right-of-use assets have been measured at an amount equal to the lease liabilities adjusted for prepayments. The selected implementation approach has no impact on retained earnings as of 1 January 2019. In implementing IFRS 16, Falck has applied the following reliefs and expedients:

Right-of-use assets are depreciated over the term of the lease and payments are allocated

• Relied on the definition under IAS 17 and IFRIC 4 to determine whether contracts at the date of initial application contain a lease. • Not recognised right-of-use assets and lease liabilities related to low value and short-term leases and related to leases with a remaining contract period of 12 months or less at the date of initial application. • Applied a single discount rate to a portfolio of leases with reasonably similar characteristics. • Excluded initial direct costs from the recognition of right-of-use assets at the date

between amortisations on the lease liabilities and interest expenses. The term of the lease is determined based on the non-cancellable period of the lease and management judgement.

of initial application. • Relied on the assessment of whether a contract is onerous under IAS 37 at the date of initial application instead of performing an impairment review under IAS 36.

IFRS 16 Leases As of 1 January 2019, Falck has adopted IFRS 16 “Leases” which replaces IAS 17 “Leases”. The adoption of IFRS 16 has resulted in leased buildings and vehicles being recognised in the balance sheet as right-of-use assets with corresponding lease liabilities.

22

Financial statements

Section 1

Accounting policies (continued) 1 January 2019

30 September 2019

Previous accounting policies

IFRS 16 adjustment

New accounting policies

Cost of services

-

-

-

(8,190)

11

(8,179)

Gross profit

-

-

-

2,186

11

2,197

Sales and administrative expenses

-

-

-

(1,632)

Operating profit before other items (EBITA)

-

-

-

663

Net financial items

-

-

-

Profit before tax

-

-

-

Income taxes

-

-

-

(170)

Profit for the period from continuing operations

-

-

-

54

Right-of-use assets

198

2,225

2,423

192

1,711

1,903

Deferred tax assets

170

-

170

131

3

134

21

340

DKK million

Previous accounting policies

IFRS 16 adjustment

New accounting policies

Income statement

1

(1,631)

12

675

(108)

(26)

(134)

224

(14)

210

3 (11)

(167) 43

Assets

Other receivables, current Total assets

50

(29)

(31) 1,683

The impact of IFRS 16 At 1 January 2019, Falck recognised lease assets under Property, plant and equipment of DKK 2,423 million of which DKK 198 million was reclassified from Finance leased assets under IAS 17. DKK 29 million was reclassified from prepayments to leased assets as part of the transition to IFRS 16. A corresponding lease liability of DKK 2,347 million was recognised under loans of which DKK 151 million was reclassified from Finance leased liabilities under IAS 17. The impact on EBITA Q1-Q3 2019 was positive by DKK 12 million due to a reduction in operating cost of DKK 238 million off-set by depreciations of DKK 226 million. The impact from IFRS 16 on Profit before tax was negative by DKK 14 million Q1-Q3 2019.

309

12,337

2,196

14,533

11,585

13,268

2,207

-

2,207

4,543

Lease liabilities, non-current

94

1,707

1,801

79

1,369

1,448

Lease liabilities, current

57

489

546

57

325

382

12,337

2,196

14,533

11,585

1,683

13,268

Deferred tax assets increased by DKK 3 million in Q1-Q3 2019 related to IFRS 16.

Equity and liabilities Equity

Total equity and liabilities

Falck Interim Report Q1 - Q3 2019

(11)

4,532

23

Financial statements

Section 2

Segment and revenue information

Q1-Q3 2019 Business units

Ambulance

Assistance

Healthcare

Portfolio Businesses

5,789

2,144

1,764

880

Group and other activities/eliminations

Total

Income statement Revenue

(201)

10,376

Depreciation, amortisation and impairment

(165)

(48)

(9)

(14)

(240)

(476)

Operating profit before other items (EBITA)

355

392

56

75

(203)

675

4,848

3,323

1,822

1,101

2,174

13,268

128

11

4

4

277

424

Balance sheet Total assets Investments in intangible assets and property, plant and equipment Key ratios EBITA margin (%)

Q1-Q3 2018 Business units

6.1%

18.3%

3.1%

8.5%

Ambulance

Assistance

Healthcare

Portfolio Businesses

5,812

2,270

1,814

884

6.5%

Group and other activities/eliminations

Comments Management has defined Falck’s business segments based on the reporting presented to the Group Executive Management, and which forms the basis for the Management’s strategic decisions. The performance of the business segments is evaluated on the basis of operating profit before other items (EBITA). Group and other activities include Group staff functions not directly attributable to the business units, eliminations and adjustment for lease accounting (IFRS 16 Leases). The business units report according to the old leasing standard (IAS 17) and not according to IFRS 16.

Total

Income statement Revenue

(174) -

10,606

Depreciation, amortisation and impairment

(231)

(86)

(98)

(19)

Operating profit before other items (EBITA)

174

318

(78)

46

5,002

4,034

1,930

1,176

236

12,378

154

13

32

60

-

259

3.0%

14.0%

(4.3)%

5.2%

(169)

(434) 291

Balance sheet Total assets Investments in intangible assets and property, plant and equipment Key ratios EBITA margin (%)

Falck Interim Report Q1 - Q3 2019

2.7%

24

Financial statements

Section 3

Discontinued operations Profit for the period from discontinued operations DKK million



Q3 2019

Q3 2018 Q1-Q3 2019 Q1-Q3 2018 2018

Revenue

-

189

-

646

646

Cost of services

-

(126)

-

(427)

(427)

Gross Profit

-

63

-

219

219

Sales and administrative expenses

-

(54)

-

(163)

(163)

Other operating income and expenses, net

-

1

Operating profit before other items (EBITA)

-

Net financial items

-

-

2

2

10

-

58

58

(2)

-

(3)

(3)

Profit before tax

-

8

-

55

55

Income taxes

-

(4)

-

(21)

(21)

Profit for the period

-

4

-

34

34

Loss on divestment of discontinued operations

-

(432)

-

(432)

(432)

Profit for the period from discontinued operations

-

(428)

-

(398)

(398)

Cash flows from discontinued operations DKK million

Q3 2019

Q3 2018

Q1-Q3 2019

Cash flows from operating activities

-

37

-

20

20

Cash flows from investing activities

-

(9)

-

(47)

(47)

Cash flows from financing activities

-

(56)

-

5

5

Cash consideration from divestment of discontinued operations

-

404

-

404

404

Cash flows from discontinued operations

-

376

-

382

382

Q1-Q3 2018

2018

Comments In Q1 2019, Falck decided to keep the Healthcare staffing business as a part of the Healthcare business unit. As a result, the staffing business is no longer presented as discontinued operations and assets classified as held for sale. The comparative figures for 2018 for the income statement, statement of cash flows and balance sheet have been restated. In 2018, discontinued operations included Falck Safety Services and Danish medical clinics and associated businesses (Falck Lægehuse, Sirculus and Vikteam). In Q3 2018, Falck divested Falck Safety Services and its Danish medical clinics. A loss on the divestments of DKK 432 million was recognised in profit from discontinued operations. See section 4.3 of the 2018 Annual report.

Section 4

Events after the reporting date No events have occurred after the balance sheet date affecting Falck’s financial position at 30 September 2019.

Falck Interim Report Q1 - Q3 2019

25

Financial statements

Falck A/S Sydhavnsgade 18 2450 Copenhagen SV Denmark Tel.: +45 70 33 33 11 www.falck.com www.falck.dk CVR no. 33 59 70 45