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Interim Report Q1 - Q2 2019

Contents

FINANCIAL STATEMENTS

Primary statements 17Sections 23

MANAGEMENT’S REVIEW

Letter from the CEO 3Quarterly highlights 4Key figures 5Quarterly results 6Performance by business unit 10Management’s statement 16

Numbers in brackets

refer to same period 2018

Falck Interim Report Q1 - Q2 2019 2

For the fifth quarter in a row, Falck improves profitability, regaining strength while making up for past conduct.

Our financial, strategic and cultural turnaround continues to show results, with profitability improving across all four business units and debt levels reduced, new business being generated through organic growth and good progress on initiatives that enable today’s Falck to operate in an ethical and transparent manner building trust with customers and communities.

Over the recent quarter, Falck continued its efficiency and cost optimisation programme, which now has a positive impact of more than DKK 500 million compared with 2017. Operational optimisation and reduced overhead costs have played key roles in the ongoing improvement while global procurement initiatives account for an increasing share of efficiency gains. During the quarter, Falck selected strategic suppliers for emergency vehicles in Europe and the US.

We divested medical clinics in Poland during the quarter. Focusing Falck’s business platform contributes to profitability and ensures high professional standards in the communities where we operate. Over the past year, Falck has divested operations in non-core markets

with an annual revenue value of more than DKK 1 billion. This includes the divestment of safety services globally, medical clinics in Denmark and Poland as well as ambulance businesses in non-core markets such as Malaysia, Switzerland and Finland.

Being more focused enables Falck to win new contracts in open tenders as we benefit from delivering premium emergency response and healthcare services in cost-efficient offerings. Going forward, we will focus on providing service excellence in roadside assistance and healthcare in the Nordics as well as best-in-class ambulance services in the US, Europe and Colombia.

In the second quarter, we went live with the Imperial College Healthcare contract to provide an estimated annual 300,000 patient journeys to Londoners. In addition, the ramp-up for the Alameda County ambulance contract prepared the company to deliver 911 services to 1.6 million Californians.

Falck builds on trust with employees, customers and communities where we operate. This trust was compromised by the actions dating back to 2014-15 which led to the ruling of the Danish Competition Council in January 2019 that Falck had violated the competition rules.

Falck improves profitability across all business units while making up for past conduct

Jakob RiisPresident and CEO

In the quarter, we took important steps in making up for past conduct.

In June, Falck reached a settlement agreement and compensated losses resulting from the actions in 2014-15, and the parties waived all claims and withdrew all litigation.

We introduced annual Code of Conduct training for all employees. In Denmark, all desk workers and most frontline employees completed the training, which will be rolled out globally. In addition, campaigns were run to ensure awareness and trust in the whistleblower system, Falck Alert.

We carried out an internal review by external parties. Most issues reviewed have been dealt with as part of our turnaround and the clean-up process initiated in 2017. Others have been or are being dealt with following the internal review process.

The internal review has given us a finite list of issues to address and actions to be completed. We continue to work diligently to complete the identified actions required to restore the trust from customers, employees and society at large.

I am pleased with our continued progress. Falck regained strength financially,

Letter from the CEO

strategically and culturally for the fifth quarter in a row. While making up for past conduct, we are building a Falck for the future.


Management’s review

4,000

3,000

2,000

1,000

0

Reported

3,441 3,530

Fixed currencies

3,5433,441

Q2 2019 Q2 2018 Q2 2019 Q2 2018

200

150

100

50

0

182

(19)

116

182

Reported Underlying

Q2 2019 Q2 2018 Q2 2019 Q2 2018

(110)

(261)

Q2 2019 Q2 2018

-400

-300

-200

-100

0

Reported

Settlement costs

(108)

(495)

(270)

Q2 2019 Q2 2018

-600

-450

-300

-150

0

Reported

Quarterly highlights

RevenueDKK million

EBITADKK million

Free cash flowDKK million

Economic profitDKK million

Revenue declined due to divestments and contract pruning• Revenue declined to DKK 3,441 million (DKK 3,530 million) primarily due to

divestments and contract pruning in Ambulance as well as lower subscription volume in Assistance.

• The revenue decline of 2.9% in fixed currencies is expected to be partly offset by new contracts in Ambulance in the second half of 2019.

Underlying profitability increased across all business units• Reported EBITA increased to DKK 182 million (negative at DKK 19 million), yielding

an underlying EBITA margin of 5.3% (3.3%). Improved EBITA was driven by continuing efficiency measures.

• Underlying EBITA margins improved across all business units with Ambulance at 5.8% (3.8%), Assistance at 17.7% (12.2%), Healthcare at 3.6% (negative at 2.4%) and Portfolio Businesses at 7.2% (3.6%).

• Special items of DKK 193 million were recognised in the income statement below EBITA, covering settlement costs, estimated fine and legal fees following ruling by the Danish Competition Council and Falck’s self-cleaning programme.1

Free cash flow was flat, while economic profit and net debt level improved• Adjusted for settlement costs of DKK 153 million, free cash flow was negative

at DKK 108 million (negative at DKK 110 million). Free cash flow was negatively impacted by start-up costs related to new contracts, offset by interest and amortisations on finance lease liabilities.

• Economic profit improved to negative DKK 270 million (negative at DKK 495 million) due to increased underlying EBITA.

• Net interest-bearing debt (including lease liabilities) was reduced from DKK 4,369 million end of Q1 2019 to DKK 4,292 million end of Q2 2019.

Outlook for 2019 is maintained but profit for the year will be impacted by costs related to competition case• For the full-year 2019, Falck expects to improve its underlying operating profit

(EBITA) compared to DKK 275 million in 2018, on a flat revenue.• Profit for the year will be negatively impacted by costs related to competition case.

Key events in Q2 2019

1) ’Self-cleaning’ is the language used by the Danish Public Procurement Act.Falck Interim Report Q1 - Q2 2019


4

Key figures

1) Excluding impact from the IFRS 16 reporting standards, cf. section 1.

2) Q2 2019 includes settlement costs of DKK 153 million.

3) Equity ratio includes subordinated shareholder loans.

In 2018, Falck Safety Services and Danish medical clinics were presented as discontinued operations and assets classified as held for sale. See section 3 and 4.

In general, the financial and non-financial data are stated excluding discontinued operations.

DKK million Q2 2019 Q2 20181) Q1-Q2 2019 Q1-Q2 20181) 20181)

Income Statement

Revenue 3,441 3,530 6,973 7,118 14,043

Operating profit before other items (EBITA) 182 (19) 509 168 275

Operating profit (EBIT) (59) (75) 215 43 28

Net financial items (13) (112) (141) (218) (439)

Profit for the year from continuing operations (90) (155) (3) (153) (517)

Profit for the year from discontinued operations - 24 - 30 (398)

Balance sheet

Total assets 13,461 13,616 13,461 13,616 12,337

Net operating assets 8,784 7,693 8,784 7,693 7,104

Total equity 4,539 2,953 4,539 2,953 2,207

Subordinated shareholder loans - 2,111 - 2,111 2,220

Net interest-bearing debt 4,292 5,554 4,292 5,554 4,961

Cash flows and investments

Cash flows from operating activities (206) (27) 326 312 764

Free cash flow2) (261) (110) 372 169 645

Investments in intangible assets and property, plant and equipment (71) (91) (393) (215) (365)

Key figures

Economic profit n/a n/a (270) (495) (263)

EBITA margin (%) 5.3 (0.6) 7.3 2.4 2.0

Cash conversion rate (%) (143.1) 578.9 73.1 100.6 234.7

Equity ratio (%)3) n/a n/a 33.7 37.2 35.9

Net interest-bearing debt to EBITDA (factor)1) n/a n/a 1.92 3.32 2.62

EBITDA 313 163 820 465 937

FTEs 23,508 27,182 23,508 27,182 25,583



Quarterly results

Financial results Q2 2019

RevenueReported revenue amounted to DKK 3,441 million (DKK 3,530 million), resulting in a revenue decline of 2.9% in fixed currencies compared to Q2 2018.

The decline in revenue was expected with divestments and contract pruning in Ambulance as key drivers. In addition, a lower subscription volume in Assistance impacted revenue negatively. New contracts in Ambulance and effective price management in both Ambulance and Assistance partly offset the decline.

Cost of servicesCost of services decreased by DKK 165 million compared to Q2 2018 excluding non-recurring costs, resulting in a gross profit improvement of 12.5% compared to Q2 2018. Sales and administrative costs decreased by DKK 127 million, driven by Falck’s efficiency and cost optimisation programme.

In the second quarter of 2019, underlying profitability increased despite a declining revenue. Economic profit and net debt level improved while free cash flow was flat.

Operating profit Reported operating profit before other items (EBITA) was DKK 182 million (negative at DKK 19 million).

Underlying EBITA was DKK 182 million (DKK 116 million), yielding an underlying EBITA margin of 5.3% (3.3%) when adjusted for non-recurring costs in Q2 2018 mainly related to impairment of assets. The improvement in underlying EBITA was driven by efficiency measures and effective price management across business units, but partly offset by the establishment of global operating models in Finance and IT.

Profit for the periodProfit for the period was negative at DKK 90 million (negative at DKK 131 million), due to the negative impact from special items of DKK 193 million, covering settlement costs, estimated fine and legal fees following a ruling by the Danish Competition Council and Falck’s self-cleaning programme. This was partly offset by improved underlying EBITA. In Q2 2019, Falck divested its Polish medical clinics and other minor businesses, recognising a gain of DKK 34 million.

Net financial items improved by DKK 99 million, primarily due to reduced net interest-bearing debt and conversion of shareholder loans.

Income taxes for the period were impacted by non-deductible costs related to special items.

Free cash flowFree cash flow was negative at DKK 261 million (negative at DKK 110 million). Adjusted for settlement costs of DKK 153 million, free cash flow was flat at negative DKK 108 million. Improved EBITA did not make up for the negative impact from start-up costs related to new contracts in Ambulance. However, reclassifications from the IFRS 16 reporting standards had a positive effect of DKK 43 million as lease payments are now classified as a financing activity.

Economic profitEconomic profit improved in Q2 2018 but was still negative at DKK 270 million (negative at DKK 495 million) including IFRS 16 implementation. The improvement was due to the increase in underlying EBITA. Implementation of the IFRS 16 reporting

standards impacted economic profit negatively by DKK 161 million.The increase in net operating assets of DKK 1,091 million was mainly driven by the implementation of IFRS 16, which was partly offset by divestments and regular depreciations and amortisations.

Equity and loansNet interest-bearing debt was reduced from DKK 4,369 million end of Q1 2019 to DKK 4,292 million end of Q2 2019. Net interest-bearing debt was negatively impacted by DKK 153 million from payment of settlement costs, offset by a positive remeasurement of lease liabilities of DKK 329 million related to the implementation of the IFRS 16 reporting standards. Equity ratio was 33.7% compared to 31.7% in Q1 2019.

Financial results Q1-Q2 2019

Year-to-date revenue was DKK 6,973 million (DKK 7,118 million), resulting in a 2.2% revenue decline in fixed currencies compared to Q1-Q2 2018. The decline in revenue was primarily driven by divestments and discontinuation of contracts in Ambulance. In addition, a lower subscription



Q1 Q2 Q3 Q4 Q1 Q2

DKK million

0

200

400

600

2018 2019

Annualised EBITA effect of efficiencyprogramme

volume in Assistance had a negative impact on revenue. The decline was partly offset by new contracts in Ambulance and effective price management in Ambulance and Assistance, which are expected to improve revenue further in Q3 2019.

Reported operating profit before other items (EBITA) was DKK 509 million (DKK 168 million). Reported EBITA was positively impacted by a one-off gain of DKK 65 million from the sale of office buildings in Denmark and by DKK 9 million due to changes in recognition of lease assets under the IFRS 16 reporting standards. Adjusted for one-off gain and IFRS 16 standards implemented, underlying EBITA was DKK 435 million (DKK 303 million), yielding an underlying EBITA margin of 6.2% (4.3%). Improvements to the underlying profitability were primarily driven by efficiency measures and effective price management across business units, but partly offset by the establishment of global operating models in Finance and IT.

Profit for the period was negative at DKK 3 million (negative at DKK 123 million), due to the negative impact from special items of DKK 193 million, partly offset by improved underlying EBITA. Divestments resulted in a net gain of DKK 24 million. Net financial items improved by DKK 77 million, primarily due to reduced net interest-bearing debt caused by conversion of shareholder loans. Income

taxes for the period were impacted by non-deductible costs related to special items.

Free cash flow amounted to DKK 372 million (DKK 169 million). Adjusted for settlement costs of DKK 153 million, free cash flow was DKK 525 million. The improvement was mainly driven by improved earnings in all business units and a lower level of investment in fixed assets, but negatively impacted by start-up costs related to new contracts. Interest and amortisations on finance lease liabilities had a positive impact of DKK 187 million.

Operational results

Operational milestones in Q2 2019 included the preparation and initiation of a large contract for patient transport services with Imperial College Healthcare in London, which went live on 1 June 2019, and the continuing preparation for a large contract for emergency services in Alameda, California, which went live on 1 July 2019.

Global operating modelsFalck is transitioning towards operating as one company with shared values and business models. The implementation of global operating models is still in progress and continued in the quarter.

In IT, the transformation process is comprehensive due to the complexity of

Efficiency programmeFalck’s efficiency and cost optimisation programme was launched in 2017 with total targeted savings of DKK 1 billion with full effect in 2020.

In Q2 2019, initiatives carried out in 2018 continued to contribute to improving profitability, and the efficiency programme had a positive impact on EBITA of DKK 62 million (Q1-Q2 2019: DKK 192 million). In total, the programme had improved EBITA by DKK 504 million exiting Q2 2019.

New efficiency initiatives were planned and initiated across business units as well as global functions during Q1 and Q2 2019, and Falck expects to see effects from the 2019 initiatives materialising in the beginning of Q3 2019.

Falck’s business. An important focus area has been to create operational stability and consolidate support processes. This project has now been 85% completed and any remaining activities will be run as separate initiatives. The magnitude of the IT transformation influences the roll-out of global operating models in the entire organisation, as many of these are linked to global IT systems.

This also applies to the continuing roll-out of global operational systems in Ambulance within fleet management, dispatch and planning. At present, the fleet management system covers all vehicles in Ambulance and Assistance, the dispatch system has reached over half of frontline employees and the planning system is in the planning phase as the task is more complex than anticipated.

In the quarter, Falck’s global Business Quality and Risk Management function continued the roll-out of its centralised governance model and methodology. Global audits were conducted, and the roll-out of Falck’s global enterprise management system progressed. Within Finance, roll-out of the global finance operating model was initiated in the US, and a centralisation of the global finance organisation was announced. An organisational change was also announced in global HR, aiming at improved transparency with clear accountability in cooperation with global, local and business functions.



The efficiency programme builds on three pillars: Operational optimisation across business units, reduction of overhead costs and procurement initiatives. The procurement programme has the three overall goals of lowering external costs to suppliers, establishing better control of spend and ensuring the quality of purchased products and services. In Q2 2019, focus was on the fleet, i.e. vehicle sourcing, vehicle financing, fuel and fuel cards. First step was selecting strategic suppliers for emergency vehicles in Europe and the US, with large potential savings.

Exiting the quarter, the number of full-time employees (FTEs) was 23,508 (27,182). The reduction was caused by redundancies following cost optimisation, by divestments and by discontinuation of contracts. However, this was partly offset by hires for new contracts in Ambulance.

Outlook for 2019

Falck maintains its overall outlook for 2019. For the full year 2019, Falck expects to improve its operating profit (EBITA) compared to DKK 275 million in 2018, on a flat revenue.

The company will continue to prune its portfolio of unprofitable contracts and services and to ensure effective price management across its business, while new contracts are expected to partly offset the revenue decline.

Falck expects its continuing efficiency programme 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 the second half of 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 the ruling by the Danish Competition Council as well as by an estimated fine from SØIK and legal fees related to the ruling and Falck’s self-cleaning programme.

Falck settled with all parties in case from 2014-15

On 24 June 2019, Falck reached a settlement agreement regarding payment of compensation for losses resulting from the acts which had led to the ruling of the Danish Competition Council on 30 January 2019 against Falck for violation of the competition rules in 2014-15.

The settlement was made between Falck,the Region of Southern Denmark, theDutch owners of BIOS and the bankruptcyestate of BIOS in Denmark. Falck agreedto compensate the parties with a totalamount of DKK 152.5 million.

Falck made separate agreements forcompensation with the Region of Southern Denmark, the Dutch owners of BIOS and Rabobank. In addition, around 500 minor creditors will receive payment from the bankruptcy estate.

With the settlement agreement, theparties waived any further claims, andall litigations between the parties werewithdrawn.

The settlement agreement is an important milestone in Falck’s self-cleaning process following the competition case.

‘Self-cleaning’ is the language used by the Danish Public Procurement Act to refer to the changes and actions that a company in Falck’s situation may implement to become a clean company and show this to authorities, customers, employees and society at large. Falck must show that it:• will never again violate competition law,• has paid compensation to those

parties who suffered a loss from Falck’s anticompetitive behaviour in 2014-15, and

• has adopted other organisational and operational measures to eradicate the wrong behaviour.

SØIK (the Danish State Prosecutor for Serious Economic and International Crime) is still working to determine the fine that Falck may need to pay in connection with the competition case.



In 2017, Falck initiated a financial, strategic and cultural turnaround. The turnaround aims at building a market-leading and financially sound emergency response and healthcare provider that delivers quality care with high levels of management control, transparency and compliance allowing Falck to operate under one brand.

Consequently, Falck changed its strategic approach:• from focusing on acquisitional growth to

profitable growth • from business built through local

partnerships to full ownership • from local autonomy to integration of

Falck’s businesses into global operating models.

The changed strategic approach has led to significant changes aiming at building a stronger, transparent and compliant Falck.

• Falck has improved its financial results and strengthened its business.

• Falck has obtained full ownership of its

Internal review concluded as part of Falck’s turnaround

entities in Latin America, Slovakia and Australia as well as divested a significant number of local entities.

• Falck has established a new executive management team and has onboarded almost every top 30 executive since 2017.

• Falck has integrated its operating model so that local sales and operations are supported by global functions and clearer processes within finance, IT, legal and HR.

• Falck has established a global compliance function, reintroduced its Code of Conduct and its Falck Alert whistleblower system as well as conducted training in the Code of Conduct and in competition law.

• A zero-tolerance approach has been adopted towards breaches of the company’s Code of Conduct.

In the spring and summer of 2019, Falck carried out an internal review of its business. Clean-up activities have been going on for a significant period of time, but this work was formalised and external experts appointed following the ruling in the Danish competition case from 2014-15. The review

aimed at identifying and dealing with any past and present violations of Falck’s Code of Conduct that Falck’s management has not been aware of. The internal review covers the years 2004-2019.

Based on reporting from the Falck Alert whistleblower system, business assurance visits, risk reporting, ethics and compliance reporting as well as input from the new management in Falck and other stakeholders, potential topics of concern were identified. This led to a fact-finding exercise including 3.8 million documents from e-mail accounts and personal network drives of current and former employees as well as interviews with employees and other stakeholders. More than 60,000 of these documents were reviewed.

The review has uncovered issues related to partnerships, conflicts of interest and local management not acting in the best interest of the company. In a limited number of instances, unclear and non-transparent relations between Falck and its partners,

employees and other stakeholders have potentially exposed Falck to risks towards which the company today has a zero-tolerance approach.

The internal review has given Falck a finite list of issues to address and actions to be completed. Most issues reviewed have been dealt with as part of the turnaround and the clean-up process initiated in 2017. Others have been or are being dealt with following the internal review process and involve employees and other stakeholders such as customers, partners and authorities.

The actions taken include disciplinary actions such as re-training, reprimands and dismissal of employees as well as changes in the ownership structure and governance of entities.

Falck works diligently to complete the identified actions required to restore trust from customers, employees and society at large.



Ambulance

Key figures

DKK million Q2 2019 Q2 2018 Q1-Q2 2019 Q1-Q2 2018 2018

Revenue 1,893 1,907 3,815 3,827 7,659

EBITA 109 41 252 141 192

EBITA margin (%) 5.8 2.1 6.6 3.7 2.5

Free cash flow (26) 88 177 86 492

Economic profit n/a n/a 21 (267) (66)

FTEs 16,649 19,817 16,649 19,817 18,511

Financial performance Q2 2019

RevenueReported revenue was DKK 1,893 million (DKK 1,907 million), resulting in a revenue decline of 1.6% in fixed currencies.

New fixed-price and pay-on-use contracts mainly in Stockholm, Germany 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 due to government insourcing. Revenue is expected

to improve in the second half of 2019 through new contracts.

In the US pay-on-use business, the number of services decreased by 21% mainly due to contract pruning, offset by effective price management and the introduction of a quality assurance fee programme in California.

Revenue in the private subscription business was on par with Q2 2018.

Operating profitOperating profit before other items (EBITA) increased to DKK 109 million (DKK 73 million).

Performance by business unit

Profitability improved driven by efficiency and cost optimisation initiatives. Revenue declined due to divestments and contract pruning.



2,000

1,500

1,000

500

0

1,893

100

Reported Fixed currenciesQ2 2019 Q2 2018 Q2 2019 Q2 2018

1,893

100

1,9241,907

150

100

50

0

109

Reported UnderlyingQ2 2019 Q2 2018 Q2 2019 Q2 2018

109

73

41

Free cash flow increased to DKK 177 million (DKK 86 million) mainly driven by improved earnings but negatively impacted by start-up costs related to new contracts in the UK and US.

Divestment of Falck’s medical clinics in Poland was effectuated in the quarter. Falck’s ambulance contract in Poland expired at the end of Q1 2019 and was not prolonged as the Polish government decided to insource all ambulance business.

Financial performance Q1-Q2 2019

Year-to-date reported revenue was DKK 3,815 million (DKK 3,827 million), resulting in a revenue decline of 1.2% 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 Q3 2019.

Operating profit before other items (EBITA) increased to DKK 252 million (DKK 141 million), yielding an underlying EBITA margin of 6.6% (4.5%) when adjusted for non-recurring costs in Q1-Q2 2018.

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 partly offset by divestments and discontinuation of contracts as well as start-up costs related to new contracts.

Adjusted for non-recurring costs in Q2 2018, the underlying EBITA margin improved to 5.8% (3.8%).

The increase in EBITA was driven by efficiency and cost optimisation initiatives, effective price management and contract pruning, mainly in Denmark and the US.

New fixed contracts for ambulance services in Stockholm and patient transport services in the Capital Region of Denmark had a positive impact on EBITA, whereas divestments and discontinuation of the ambulance contract in Poland as well as start-up costs in the UK had a negative impact.

Free cash flowFree cash flow was negative at DKK 26 million (positive at DKK 88 million), primarily due to start-up costs related to new contracts in the UK and US and prepaid taxes in California related to the quality assurance fee programme.

Business update

In Q2 2019, a large contract for patient transport services went live with Imperial College Healthcare in London, and preparations continued for a large ambulance contract in Alameda, California, which went live on 1 July 2019. In addition, a number of minor contracts were won or extended in Germany and the US.

Fixed contracts* 52%

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

Pay-on-use contracts** 38%

Other 2%

Private subscriptions***8%

Revenue by contract type Q1-Q2 2019EBITADKK million

RevenueDKK million



Assistance

Key figures


RevenueReported revenue was DKK 710 million (DKK 756 million), resulting in a revenue decline of 6.0% in fixed currencies.

The decline was primarily driven by fewer subscriptions in Denmark and Sweden as well as by lower activity levels in the pay-on-use business due to mild weather conditions.

The decline in the subscription business was partly offset by effective price management.

The number of trips in the pay-on-use business declined by 9% but revenue per trip increased.

Operating profitOperating profit before other items (EBITA) increased to DKK 126 million (DKK 93 million), yielding an underlying EBITA margin of 17.7% (12.2%). The increase in EBITA was driven by efficiency and cost optimisation initiatives and effective price management.

Efficiency initiatives carried out in 2018 continued to contribute significantly to


Revenue 710 756 1,454 1,555 2,993

EBITA 126 93 270 204 415

EBITA margin (%) 17.7 12.2 18.6 13.1 13.9

Free cash flow (16) (53) 347 206 282

Economic profit n/a n/a 95 13 37

FTEs 1,600 1,922 1,600 1,922 1,728


Profitability improved driven by efficiency and cost optimisation initiatives. Revenue declined due to fewer subscriptions and lower activity levels in the pay-on-use business.



900

600

300

0

710

Reported Fixed currenciesQ2 2019 Q2 2018 Q2 2019 Q2 2018

710755756

150

100

50

0

126

Reported UnderlyingQ2 2019 Q2 2018 Q2 2019 Q2 2018

126

9393

country managers are being appointed. The commercial organisation was also restructured with responsibilities split between direct portfolios and partnerships. In Norway, Falck won an award for best customer service within roadside assistance for the fifth time.

In the Danish public firefighting business, a contract with Beredskab Øst was prolonged till the end of 2020.


Year-to-date reported revenue was DKK 1,454 million (DKK 1,555 million), resulting in a decline of 6.2% in fixed currencies.

The decline in revenue was driven by fewer subscriptions in Denmark and Sweden and lower activity levels in the pay-on-use business due to continuing mild weather conditions. This was partly offset by effective price management.

Operating profit before other items (EBITA) increased to DKK 270 million (DKK 204 million), yielding an EBITA margin of 18.6% (13.1%).

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.

Free cash flow increased to DKK 347 million (DKK 206 million) mainly due to improved underlying performance and lower investment in fixed assets.

Pay-on-use contracts**23%

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

Private subscriptions* 63%

Fixed contracts***14%

Revenue by contract type Q1-Q2 2019EBITADKK million

RevenueDKK million

improving profitability as they materialised, including increased use of franchisers and sub-contractors, better utilisation of call centres and optimisation of the network of Falck stations in Denmark.

Mild weather causing lower frequency of use had a positive impact on EBITA in the subscription business, but a negative impact in the pay-on-use business.

Free cash flow Free cash flow was negative at DKK 16 million (negative at DKK 53 million). The improvement was driven by improved underlying performance and lower investment in fixed assets.

Business update

In the quarter, Assistance launched a new portfolio of healthcare and patient transportation products to the private subscription market, which will provide consumers with quick and easy access to private health packages and patient transportation services. The new products are the result of a close collaboration between the Healthcare, Ambulance and Assistance business units in Denmark.

A reorganisation in the quarter brought together operations and assistance centre functions in each country, and



Healthcare

Key figures



Revenue was negatively impacted by lower volumes in the pay-on-use business in Sweden.

Operating profitOperating profit before other items (EBITA) increased to DKK 23 million (negative at DKK 103 million), yielding an underlying EBITA

margin of 3.6% (negative at 2.4%) when adjusted for non-recurring costs in Q2 2018.

The increase in EBITA was caused by efficiency and cost optimisation initiatives implemented across the business from 2018. These include contract pruning and standardisation of contracts, elimination of redundant work and rightsizing of back-office functions, improved utilisation of call centres and the Healthcare network and digitisation of processes.

Free cash flowFree cash flow increased to DKK 28 million (negative at DKK 58 million). Cash flow


Revenue 618 625 1,257 1,267 2,466

EBITA 23 (103) 65 (78) (115)

EBITA margin (%) 3.6 (16.4) 5.1 (6.1) (4.6)

Free cash flow 28 (58) 47 (61) 17

Economic profit n/a n/a (51) (83) (101)

FTEs 2,298 2,553 2,298 2,553 2,452


was positively impacted by the improved underlying performance.

Business update

In Q2 2019, Healthcare initiated its contract for occupational healthcare of Volvo’s employees in Sweden and took over Volvo’s internal occupational healthcare service, whose 60 employees transferred to Falck (Previa). The five-year contract covers approximately 20,000 employees.

The quarter also marked the termination of Falck’s contract with a large insurance company in Denmark.

Healthcare reorganised its Danish organisation, strengthening its commercial functions and merging several units into one joint network organisation, enabling standardised resource planning, increased professional development and better treatment management and impact measurement.


Year-to-date reported revenue was DKK 1,257 million (DKK 1,267 million), resulting in a revenue increase of 0.8% in fixed currencies.

The development in revenue was positively impacted by increased activity in Denmark and Norway but offset by a decrease in pay-on-use volumes in Sweden.

Operating profit before other items (EBITA) increased to DKK 65 million (negative at DKK 78 million), yielding an underlying EBITA margin of 5.1% (0.8%) when adjusted for non-recurring costs.

The increase in EBITA was caused by efficiency and cost optimisation initiatives across the business.

Free cash flow was DKK 47 million (negative at DKK 61 million). The increase was mainly due to improved underlying performance.

Profitability increased on a flat revenue due to efficiency and cost optimisation initiatives implemented across the business.



Portfolio Businesses

Key figures

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



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.

Operating profitOperating profit before other items (EBITA) was DKK 21 million (DKK 11 million), yielding an underlying EBITA margin of 7.2% (3.6%).

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 flowFree cash flow improved to DKK 24 million (negative at DKK 32 million), mainly driven by lower investment in fixed assets and improved cash collection in Industrial Fire Services.


Revenue 292 299 583 589 1,162

EBITA 21 11 39 27 43

EBITA margin (%) 7.2 3.6 6.7 4.5 3.7

Free cash flow 24 (32) 38 (63) 86

Economic profit n/a n/a 6 (50) (12)

FTEs 2,662 2,737 2,662 2,737 2,726


Profitability improved driven by new business and efficiency and cost optimisation initiatives in both service areas, while revenue declined due to a major divestment.

Business update

In the quarter, Global Assistance went live with contracts for security and medical travel services for two large, Danish corporate customers.

Industrial Fire Services continued the focus on implementing standardised procedures across the business.


Year-to-date reported revenue was DKK 583 million (DKK 589 million), resulting in a revenue decline of 1.7% 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.

Operating profit before other items (EBITA) was DKK 39 million (DKK 27 million), yielding an underlying EBITA margin of 6.7% (4.5%).

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 38 million (negative at DKK 63 million), mainly driven by lower investment in fixed assets and improved cash collection in both service areas.



Management’s statement

Copenhagen, 15 August 2019

Executive Committee:

Jakob Riis Tor Magne Lønnum Jakob BomholtPresident and CEO CFO EVP, Ambulance

Board of Directors:

Peter Schütze Lene Skole Lars Frederiksen Chairman Deputy Chairman

Niels Smedegaard Dorthe Mikkelsen Søren Thorup Sørensen

Vagn Flink Møller Pedersen Henrik Villsen Andersen Allan Rensgaard

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 June 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.

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

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

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

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.



Income statementDKK million Section Q2 2019 Q2 2018 Q1-Q2 2019 Q1-Q2 2018 2018

Revenue 2 3,441 3,530 6,973 7,118 14,043

Cost of services (2,757) (2,922) (5,478) (5,767) (11,380)

Gross profit 684 608 1,495 1,351 2,663

Sales and administrative expenses (517) (644) (1,080) (1,225) (2,473)

Other operating income and expenses, net 15 17 94 42 85

Operating profit before other items (EBITA) 182 (19) 509 168 275

Special items (193) - (193) (11) (14)

Amortisation of customer contracts (48) (56) (101) (114) (233)


Gains/losses from divestments of enterprises 34 (6) 24 (8) (56)

Income after tax from associates and joint arrangements 3 (1) 3 (1) 1

Financial income 3 12 5 19 34

Financial expenses (16) (124) (146) (237) (473)

Profit before tax (35) (194) 101 (184) (466)

Income taxes (55) 39 (104) 31 (51)

Profit for the period from continuing operations (90) (155) (3) (153) (517)

Profit for the period from discontinued operations 3 - 24 - 30 (398)

Profit for the period (90) (131) (3) (123) (915)

Profit for the period attributable to:

Shareholders in Falck A/S (104) (125) (31) (120) (888)

Non-controlling interests 14 (6) 28 (3) (27)

Total (90) (131) (3) (123) (915)


Financial statements

Statement of comprehensive incomeDKK million Section Q2 2019 Q2 2018 Q1-Q2 2019 Q1-Q2 2018 2018

Profit for the period (90) (131) (3) (123) (915)

Actuarial adjustment of pension provisions - - - 1 1

Items that will not be reclassified to the income statement - - - 1 1

Exchange rate adjustment (45) 42 6 21 (24)

Value adjustment of currency hedging instruments 13 (1) 4 2 (3)

Value adjustment of interest hedging instruments 5 4 9 9 25

Tax on other comprehensive income 7 (20) - (1) (17)

Items that may be reclassified to the income statement (20) 25 19 31 (19)

Other comprehensive income (20) 25 19 32 (18)

Total comprehensive income (110) (106) 16 (91) (933)

Total comprehensive income attributable to:

Shareholders in Falck A/S (124) (100) (12) (88) (906)

Non-controlling interests 14 (6) 28 (3) (27)

Total (110) (106) 16 (91) (933)



Statement of cash flowsDKK million Section Q2 2019 Q2 2018 Q1-Q2 2019 Q1-Q2 2018 2018


Depreciation, amortisation and impairment 132 182 311 297 662

Amortisation of customer contracts 48 56 101 114 233

Change in net working capital (271) (158) (48) (25) 117

Transactions with associates (8) 15 (22) 18 23

Reversal of profit from divestment of non-current assets, net (10) (5) (88) (10) (34)

Net interest paid (8) 1 (63) (54) (120)

Income tax paid (30) (43) (80) (71) (145)

Cash flows from operating activities (206) (27) 326 312 764

Purchase of property, plant and equipment (54) (68) (366) (126) (257)

Sale of property, plant and equipment 8 9 376 18 126

Purchase of intangible assets (17) (23) (27) (89) (108)

Acquisition of subsidiaries, non-controlling interests and operations (27) (19) (27) (28) (55)

Divestment of subsidiaries, non-controlling interests and operations 117 (2) 122 (4) -

Investments in associates - - - - (8)

Cash flows from hedging of net investments (1) 6 8 21 33

Cash flows from investing activities 26 (97) 86 (208) (269)

Transactions with shareholders - - 1 - -

Transactions with non-controlling interests (6) (10) (6) (14) (15)

Interest-bearing debt raised 96 10 120 10 -

Repayment of interest-bearing debt (269) (216) (803) (664) (756)

Cash flows from financing activities (179) (216) (688) (668) (771)

Cash flows from continuing operations (359) (340) (276) (564) (276)

Cash flows from discontinued operations 3 - 3 - 6 213

Change in cash and cash equivalents (359) (337) (276) (558) (63)

Cash and cash equivalents at 1 January 1,224 844 1,138 1,077 1,077

Exchange rate adjustment (10) - (7) (6) (9)

Change in cash and cash equivalents (359) (337) (276) (558) (63)

Cash and cash equivalents related to assets classified as held for sale - (8) - (14) 133

Cash and cash equivalents at the end of the period 855 499 855 499 1,138



Balance sheet

DKK million Section30 June

201930 June

201831 December

2018

Assets

Goodwill 6,356 6,474 6,424

Other intangible assets 899 1,209 1,008

Property, plant and equipment 2,849 1,396 1,098

Investments in associates and joint ventures 47 54 64

Deferred tax assets 135 209 170

Other receivables 42 42 50

Total non-current assets 10,328 9,384 8,814

Inventories 27 71 24

Contract assets 453 598 479

Trade receivables 1,435 1,498 1,489

Income tax receivable 48 26 29

Other receivables 315 306 364

Cash and cash equivalents 855 499 1,138

Total current assets 3,133 2,998 3,523

Assets classified as held for sale 4 - 1,234 -

Total assets 13,461 13,616 12,337

DKK million Section30 June

201930 June

201831 December

2018

Equity and liabilities

Share capital 133 81 81

Other reserves (368) (439) (387)

Retained earnings 4,372 2,909 2,182

Equity attributable to Falck A/S 4,137 2,551 1,876

Non-controlling interests 402 402 331

Total equity 4,539 2,953 2,207

Subordinated shareholder loans - 2,111 2,220

Loans 4,566 3,944 3,756

Deferred tax 204 232 230

Provisions 91 143 99

Other payables 3 10 10

Total non-current liabilities 4,864 6,440 6,315

Loans 581 117 123

Trade payables 670 801 820

Income taxes 138 107 97

Provisions 193 213 244

Contract liabilities 1,225 1,356 1,204

Other payables 1,251 1,274 1,327

Total current liabilities 4,058 3,868 3,815

Total liabilities 8,922 10,308 10,130

Liabilities relating to assets classified as held for sale 4 - 355 -

Total equity and liabilities 13,461 13,616 12,337



Statement of changes in equity

2019 DKK millionShare

capitalHedging

reserve

Currency translation

reserveRetained earnings Total

Non- controlling

interests Equity

Equity at 1 January 2019 81 (10) (377) 2,182 1,876 331 2,207

Change in accounting policies - - - - - - -

Adjusted equity at 1 January 2019 81 (10) (377) 2,182 1,876 331 2,207

Exchange rate adjustment - - 6 - 6 - 6

Value adjustment of currency hedging instruments - 4 - - 4 - 4

Value adjustment of interest hedging instruments - 9 - - 9 - 9

Tax on other comprehensive income - (3) 3 - - - -

Other comprehensive income - 10 9 - 19 - 19

Profit for the period - - - (31) (31) 28 (3)

Total comprehensive income - 10 9 (31) (12) 28 16

Capital increase 52 - - 2,218 2,270 - 2,270

Dividend - - - - - (6) (6)

Change in non-controlling interests’ ownership share - - - 12 12 49 61

Adjustment of provision for acquisition of non-controlling interests relating to acquisitions after 1 January 2010 - - - (9) (9) - (9)

Total transactions with owners 52 - - 2,221 2,273 43 2,316

Total equity movements in 2019 52 10 9 2,190 2,261 71 2,332

Total equity at 30 June 2019 133 - (368) 4,372 4,137 402 4,539



2018 DKK millionShare

capitalHedging

reserve

Currency translation

reserveRetained earnings Total

Non- controlling

interests Equity

Equity at 1 January 2018 81 (27) (443) 3,091 2,702 428 3,130

Change in accounting policies - - - (53) (53) - (53)

Adjusted equity at 1 January 2018 81 (27) (443) 3,038 2,649 428 3,077

Exchange rate adjustment - - 21 - 21 - 21

Value adjustment of currency hedging instruments - 2 - - 2 - 2

Value adjustment of interest hedging instruments - 9 - - 9 - 9

Acturial adjustment of pension provisions - - - 1 1 - 1

Tax on other comprehensive income - (2) 1 - (1) - (1)

Other comprehensive income - 9 22 1 32 - 32

Profit for the period - - - (120) (120) (3) (123)

Total comprehensive income - 9 22 (119) (88) (3) (91)

Dividend - - - - - (11) (11)

Change in non-controlling interests’ ownership share - - - 12 12 (12) -

Purchase and sale of treasury shares, warrants, etc. - - - (1) (1) - (1)

Adjustment of provision for acquisition of non-controlling interests relating to acquisitions after 1 January 2010 - - - (21) (21) - (21)

Total transactions with owners - - - (10) (10) (23) (33)

Total equity movements in 2018 - 9 22 (129) (98) (26) (124)

Total equity at 30 June 2018 81 (18) (421) 2,909 2,551 402 2,953

(Continued)Statement of changes in equity



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 ratiosIn 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 flowFree cash flow has been revised to include income tax paid.

Section 1Accounting policies

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 profitIn 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 statementThe 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 interpretationsThe following accounting standards, amend-ments (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.

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.

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

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:

• 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 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.



Section 1Accounting policies (continued)

1 January 2019 30 June 2019

DKK million

Previousaccounting

policiesIFRS 16

adjustment

Newaccounting

policies

Previousaccounting

policiesIFRS 16

adjustment

Newaccounting

policies

Income statement

Cost of services - - - (5,486) 8 (5,478)

Gross profit - - - 1,487 8 1,495

Sales and administrative expenses - - - (1,081) 1 (1,080)

Operating profit before other items (EBITA) - - - 500 9 509

Net financial items - - - (123) (18) (141)

Profit before tax - - - 110 (9) 101

Income taxes - - - (106) 2 (104)

Profit for the period from continuing operations - - - 4 (7) (3)

Assets

Property, plant and equipment 1,098 2,225 3,323 1,047 1,802 2,849

Deferred tax assets 170 - 170 133 2 135

Other receivables, current 50 (29) 21 346 (31) 315

Total assets 12,337 2,196 14,533 11,688 1,773 13,461

Equity and liabilities

Equity 2,207 - 2,207 4,546 (7) 4,539

Loans, non-current 3,756 1,707 5,463 3,107 1,459 4,566

Loans, current 123 489 612 260 321 581

Total equity and liabilities 12,337 2,196 14,533 11,688 1,773 13,461

The impact of IFRS 16At 1 January 2019, Falck recognised lease assets under Property, plant and equipment of DKK 2,383 million of which DKK 158 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 2,313 million was recognised under loans of which DKK 117 million was reclassified from Finance leased liabilities under IAS 17.

The impact on EBITA Q1-Q2 2019 was positive by DKK 9 million due to a reduction in operating cost of DKK 156 million off-set by depreciations of DKK 147 million. The impact from IFRS 16 on Profit before tax was negative by DKK 9 million Q1-Q2 2019.

Deferred tax assets increased by DKK 2 million in Q1-Q2 2019 related to IFRS 16.



Section 2Segment and revenue information

Q1-Q2 2019 Business units Ambulance Assistance Healthcare Portfolio BusinessesGroup and other

activities/eliminations Total

Income statement

Revenue 3,815 1,454 1,257 583 (136) 6,973

Depreciation, amortisation and impairment (104) (38) (6) (11) (152) (311)

Operating profit before other items (EBITA) 252 270 65 39 (117) 509

Balance sheet

Total assets 4,640 3,788 1,990 1,123 1,920 13,461

Investments in intangible assets and property, plant and equipment 117 8 4 4 260 393

Key ratios

EBITA margin (%) 6.6% 18.6% 5.1% 6.7% 7.3%

Q1-Q2 2018 Business units Ambulance Assistance Healthcare Portfolio BusinessesGroup and other

activities/eliminations Total

Income statement

Revenue 3,827 1,555 1,267 589 (120) 7,118

Depreciation, amortisation and impairment (137) (59) (91) (10) - (297)

Operating profit before other items (EBITA) 141 204 (78) 27 (126) 168

Balance sheet

Total assets 5,135 4,074 1,918 1,268 1,221 13,616

Investments in intangible assets and property, plant and equipment 121 12 27 55 - 215

Key ratios

EBITA margin (%) 3.7% 13.1% (6.1)% 4.5% - 2.4%

CommentsManagement 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.



Section 3Discontinued operations

Profit for the period from discontinued operations


Revenue - 241 - 464 653

Cost of services - (159) - (308) (434)

Gross Profit - 82 - 156 219

Sales and administrative expenses - (55) - (109) (163)

Other operating income and expenses, net - - - 1 2

Operating profit before other items (EBITA) - 27 - 48 58

Net financial items - 14 - (1) (3)

Profit before tax - 41 - 47 55

Income taxes - (17) - (17) (21)

Profit for the period - 24 - 30 34

Loss on divestment of discontinued operations - - - - (432)

Profit for the period from discontinued operations - 24 - 30 (398)

Cash flows from discontinued operationsDKK million Q2 2019 Q2 2018 Q1-Q2 2019 Q1-Q2 2018 2018

Cash flows from operating activities - (7) - (17) 21

Cash flows from investing activities - (18) - (38) (144)

Cash flows from financing activities - 28 - 61 (68)

Cash consideration from divestment of discontinued operations - - - - 404

Cash flows from discontinued operations - 3 - 6 213

CommentsIn 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.

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 4Assets classified as held for sale

Assets classified as held for sale

DKK million30 June

201930 June

201831 December

2018

Intangible assets - 443 -

Property, plant and equipment - 330 -

Deferred tax assets - 60 -

Inventories - 2 -

Contract assets - 36 -

Trade receivables - 155 -

Income tax receivable - 8 -

Other receivables - 54 -

Cash and cash equivalents - 146 -

Assets classified as held for sale - 1,234 -

Deferred tax - 25 -

Loans - 26 -

Trade payables - 73 -

Income taxes - 17 -

Provisions - 124 -

Contract liabilities - 9 -

Other payables - 81 -

Liabilities relating to assets classified as held for sale - 355 -

Net assets classified as held for sale - 879 -

CommentsAssets and liabilities classified as held for sale relate to Falck Safety Services and Danish medical clinics and associated businesses (Falck Lægehuse, Sirculus and Vikteam), which are disclosed as discontinued operations.

In Q3 2018, Falck divested Falck Safety Services and its Danish medical clinics and associated businesses (Falck Lægehuse, Sirculus and Vikteam). See section 3.

Section 5Events after the reporting date

No events have occurred after the balance sheet date affecting Falck’s financialposition at 30 June 2019.



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


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