Humana Inc. · NYSE:HUM
Humana — Q1 2021 Earnings Presentation
24 slides from Humana's earnings presentation, May 6, 2021
Slide 1: Interim report January-March, Q1, 2021
Everyone is entitled to a good life. Interim report January-March, Q1, 2021 Rasmus Nerman, Noora Jayasekara, 6 May 2021
Slide 2: Continued good progress in Q1 2021
Continued good progress in Q1 2021 • Main focus still on handling the pandemic • Situation improved following vaccinations of both residents and staff • Occupancy still dampened • Steady performance continuing • Humana Group continues to grow organically CEO • Acquisition of Team J-son (I&F) _______
Slide 3: Financial highlights Q1 2021
Financial highlights Q1 2021 Growth • Revenue: SEK 1,986m (1,938), +2% vs LY • Organic growth: 2.4% (3.8) Profitability • Operating profit: SEK 112m (98m), +14% • Operating margin: 5.7% (5.1%) Cash flow & leverage • Operating cash flow: SEK 197m (95) • Net debt: SEK 3,688 (3,798), SEK -110m • Net de
Slide 4: Covid-19 still the main focus
Covid-19 still the main focus • Continued low transmission of Covid-19 due to hard work • Good effect from vaccination programmes • Humana Quality Index, HQI, slightly down in Q1, after two quarters on a record level • The employee survey reflected a challenging year for many employees • 3 Lex Sarah
Slide 5: Accelerated sustainability work
Accelerated sustainability work • ESG contributions 2020: • Strong quality (HQI increased) • Saved Nordic taxpayers SEK 1bn • 163 entry level jobs created • Work on equal opportunities • Carbon index implemented. Reduced emissions in 2020 • Code of Conduct for suppliers • More on our work in the Ann
Slide 6: Another stable quarter in Personal Assistance
Another stable quarter in Personal Personal Assistance Assistance • Steady performance • Growth of 5%, of which organic growth was 2.5% • Continued strong momentum as a result of organisational changes and digitalisation • High grades in our internal quality measurements due to good results in both
Slide 7: Steady performance in Individual & Family
Steady performance in Individual & Family • Steady performance continues due to • Positive organisational momentum • Stable demand in all segments • Improved organic growth • New operations in LSS and the adult segment contributing • In February, acquisition of Team J-son • Revenue of approximately
Slide 8: Focus on the pandemic - and on new units
Focus on the pandemic - and on new units • Main focus continuously on handling the Covid-19 situation • Customers and employees have had vaccinations. We see a clear positive effect • Occupancy still negatively impacted although picking up • New own managed unit in Falkenberg successfully opened in
Slide 9: Finland: Heading in the right direction but facing financial challenges
fjsökdfösjsdfs Heading in the right direction Finland but facing financial challenges • Operationally the business area headed in the right direction • The pandemic continues to have a negative effect on revenue due to lower occupancy • I&F segments performing well although negatively impacted by ne
Slide 10: Strong development in Norway
Strong development in Norway • Strong organic growth of 11.2 percent • The new agreement in the assistance operations has led to strong customer inflow • The segment for disabled care is also growing • The Hagen report on private welfare providers, published in December, contributing with important
Slide 11: CFO highlights Q1 2021
CFO highlights Q1 2021 • From a financial perspective our main objectives remain: to increase predictability and stability • Continued progress within digitalisation • In February and March, further repurchases of shares in accordance with the authorisation from AGM 2020 – now holding 5,017,059 shar
Slide 12: Operating revenue
Q1 Year Operating revenue +1% • An increase in revenues by 2% 7 797 7 845 • Organic growth 2.4% (3.8) • Improved organic growth in +2% Individual & Family and Norway 1 938 1 986 • Decrease in organic growth in Finland • Adjusted for leap day, organic growth was 3.5% (2.7) in Q1 • Acquired operations
Slide 13: Profitability
Q1 Year Profitability • Operating margin 5.7% (5.1) in Q1 +3% 485 • Operating profit increase of 14% 471 467 453 • All business areas contributing to the increase except for Finland • Covid-19 affected the profit from several +14% aspects 98 98 112 112 • Lower occupancy • Increased sickness absences
Slide 14: Personal Assistance
Revenue Profitability Personal Assistance • Revenue increased by 5% +5% • Organic growth was 2.5% (2.9). 719 751 23% • Higher reimbursement 50 • Acquired operations contributed 50 12 40 10 • Operating profit increased by 23% 40 8 • Operating margin was 6.6% (5.6) 30 • More efficient cost management
Slide 15: Individual & Family
Profitability Individual & Family Revenue • Revenue increased by 6% +6% • Organic growth of 3.6% (1.4). 553 519 • Stable occupancy in Children and 24% youth 45 12 41 • Increased occupancy in Adult 40 10 35 33 • New units and acquisitions 30 8 contributed 25 6 • Operating profit increased by 24% 20 1
Slide 16: Elderly Care
Revenue Profitability Elderly Care • Revenue growth of 3% +3% • The increase in revenue is organic 146 151 • The increase is due entirely to contracted operations 5 5 12 • Lower occupancy due to Covid-19 10 4 • Operating margin was 3.6% (-0.3) 8 3 • Improvements in new units 6 4 • The pandemic affec
Slide 17: Finland
Revenue Profitability Finland • Revenue decrease of 10% -10% • Organic growth was -4.6% (10.2) 350 316 • Terminated some contracts -32% • Negative impact on occupancy 18 17 12 from Covid-19 in elderly care and 16 14 10 outpatient care 12 11 8 • New unit openings contributed 10 6 • Operating profit d
Slide 18: Norway
Revenue Profitability Norway • Revenue increase of 8% +8% • Organic growth was 11.2% (4.6) 210 194 • Increase in customers in personal 28% assistance and the care home 18 17 12 segment 16 10 14 13 • Operating profit increased by 28% 12 8 10 • Operating margin for the quarter 8 6 was 7.9% (6.7) 6 4 •
Slide 19: Central costs
Q1 Central costs Q1 Q1 • Underlying central costs at same SEK m 2020 2021 level as in Q1 previous year Underlying central costs 27 27 • Positive effects of IFRS 16 of Acquisition related costs 0 0 SEK 15m on central costs (and operating profit) in the quarter Effects of IFRS 16 -16 -15 Sales of real
Slide 20: Financial position
Financial position Leverage, development • Interest-bearing net debt decreased, year-on-year, by SEK 110m to SEK 3,688m (3,798) • The decrease mainly 8 7,1 attributable to an increased 7 6 5,7 6,0 5,4 operating cash flow offset by 5,2 5 4,6 4,5 4,3 4,4 buyback of shares 4 3 • Leverage, interest-bear
Slide 21: Cash flow
Operating cash flow Cash flow • Operating cash flow SEK 197m (95) • Improved profit, decreased working capital and fewer SEK m Q1 2020 Q1 2021 investments behind the increase Operating profit 98 112 Depreciation 88 91 • Cash flow for the quarter SEK -196m (-58), where Changes in working capital -41
Slide 22: Financial targets and development
Financial targets and development Revenue growth Profitability Capital structure 200 10 11 8 10 7,1 160 8 7 9 8 6,0 6 5,7 7 120 6 5,4 5,2 6 5 4,6 4,5 5 4,2 80 176 172 4 4,3 4,4 4,1 4 3,4 3,4 4 2,9 3 2,8 2,2 2,0 2,6 98 100 101 112 40 77 71 2 2 3 45 1 0 0 0 2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1
Slide 23: Summary
Summary ✓ Q1 2021- a stable quarter ✓ The vaccinations improved our operational situation ✓ Humana continued to grow organically ✓ Improved operating profit in four out of five business areas ✓ Strong cash flow Priorities going forward ▪ Handle the pandemic in a good way CEO __________ ▪ Continued f
Slide 24: Thanks!
Thanks! Financial calendar Further information AGM 11 May 2021 Anna Sönne, Head of IR and Sustainability, Half-year report Jan-Jun and Q2 2021 20 Aug 2021 Interim report Jan-Sep and Q3 2021 11 Nov 2021 +46 70 601 4853 anna.sonne@humana.se