Slide 1: Fourth Quarter 2024 Presentation
Fourth Quarter 2024 Presentation Mark Jensen Benno Eliasson CEO CFO
Slide 2: This is Ambea
This is Ambea Market leader in Sweden, Norway and Denmark Net sales (R12), MSEK Ambea 14 195 Nytida 4 249 Staffing and Vardaga 5 087 Social and competency elderly care 2% Stendi 3 352 9% Altiden 1 273 30% Social care Klara 409 23% EBITA and EBITA-margin (R12), MSEK ~14 200 MSEK sales Social care 450
Slide 3: Care quality our primary concern
Care quality our primary concern Care quality, our “license to operate” High level of care receiver Creativity in focus with Lars Lerin’s Strong results for Nytida and satisfaction Swedish TV series Vardaga in national Unit Survey During Q4 we saw strong results within Residents at Vardaga Villa Orr
Slide 4: Sustainability, an integrated part of our strategy
Sustainability, an integrated part of our strategy We continue to lead the care sector with initiatives across the full ESG agenda Further increase in employee Net Empowering Ukrainian employees Ready for the Corporate Sustain- Promoter Score (eNPS) to +25 through education ability Reporting Directi
Slide 5: Organic growth
Organic growth Robust own management pipeline • The pipeline for own management beds/care places totals 1 308 for the quarter. Own management beds/care places & pipeline • Milestone achieved – capacity of over 10 000 beds/care places in own management. 9 991 10 241 9 956 • Nytida signed one new assi
Slide 6: Acquired growth
Acquired growth Fourth bolt-on acquisition within Nytida in 2024 • In the beginning of the quarter, Nytida acquired a major part of Friab with total annual net sales of 180 MSEK. Acquired annual net sales per year*, MSEK • Earlier, in the second and third quarter of 2024, Nytida acquired three compa
Slide 7: Revenue growth
Revenue growth Consistent good organic growth 7,9% 7,7% 5,7% 6,0% 6,6% 1,8% 5,3% 5,3% 6,3% 1,5% 5,0% 1,9% 7,7% 7,6% 7,2% 6,4% 5,9% 5,9% 5,3% 4,2% 4,7% Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2022 Q2 2023 Q3 2024 Q4 Q3 Organic growth Acquired/divested growth Currency & calender effect 7
Slide 8: Highlights of Q4 2024
Highlights of Q4 2024 Strong end to a successful year • Net sales increased by 7 per cent, driven by 5 per cent organic growth. • EBITA for the group increased by 20 per cent, and margin improved to 9,5 (8,4) per cent. • Altiden continues its performance improvement with another quarter of positive
Slide 9: Financial summary
Financial summary Benno Eliasson CFO 9
Slide 10: Net sales
Net sales Growth in all business areas except for Klara 9% 9% 3% 4% -9% 26 12 1 3 637 106 - 10 90 3 412 Net sales Nytida Vardaga Stendi Altiden Klara Elim. Net sales Q4 2023 Q4 2024 Net sales growth per business area 10
Slide 11: EBITA
EBITA Significant EBITA-margin improvements in Altiden and Vardaga 8,4% -1,9pp 2,0pp 2,5pp 7,4pp -1,7pp 9,5% 24 23 344 -3 -11 34 286 -9 EBITA Nytida Vardaga Stendi Altiden Klara Other EBITA Q4 2023 Q4 2024 Total EBITA margin and margin development per business area 11
Slide 12: Operating cash flow
Operating cash flow Increased operating cash flow with strong cash conversion 100,3% 100,2% 95,6% 97,9% 94,3% 94,9% 95,6% 91,8% 85,3% 876 743 355 605 580 542 545 527 500 341 372 353 302 344 328 327 356 521 322 402 240 217 236 252 173 171 50 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2022 2023 2024 Operating cash fl
Slide 13: Free cash flow R12 excl. IFRS16
Free cash flow R12 excl. IFRS16 High free cash flow generation in 2024 1 273 1 372 1 237 -1 408 - 76 - 100 101 875 - 149 - 138 13
Slide 14: Utilization of free cash flow R12
Utilization of free cash flow R12 Free cash flow used for dividend payout, acquisitions, buyback of shares and reduced debt 875 - 130 - 253 58 - 431 -4 Free cash flow Dividend Acquisitions Share buyback FX & other Change in net debt 14
Slide 15: Strong development in EPS & DPS
Strong development in EPS & DPS Consistent dividend payout in line with our policy 7,20 17%* 5,07 3,80 3,89 2,51 2,20 1,25 1,50 EPS (Earnings Per share), SEK 1,15 1,15 DPS (Dividend Per Share), SEK 2020 2021 2022 2023 2024 *EPS CAGR, % 2020 – 2024 15
Slide 16: Business overview
Business overview Benno Eliasson CFO 16
Slide 17: Nytida: New acquisition
New acquisition • Net sales increased by 9 per cent, due to the newly MSEK Q4 2024 Q4 2023 Change, % acquired- and start-up units. Net sales 1 108 1 018 9% • Own management sales represent 81 (81) per cent of EBITA EBITA, % 121 10,9% 130 12,8% -7% -1,9 pts total net sales in the quarter. Contract ma
Slide 18: Vardaga: Continued strong earnings growth
Continued strong earnings growth • Net sales increased by 9 per cent, driven by MSEK Q4 2024 Q4 2023 Change, % continued higher occupancy in both new and Net sales 1 306 1 200 9% established facilities. EBITA 122 88 39% EBITA, % 9,3% 7,3% 2,0pts • Own management sales represents 69 (69) per EBITA ma
Slide 19: Stendi: Stable underlying earnings
Stable underlying earnings • Net sales increased by 3 per cent, due to a better MSEK Q4 2024 Q4 2023 Change, % service and price mix. In local currency net sales Net sales 834 808 3% increased by 4 per cent. EBITA 93 70 33% EBITA, % 11,2% 8,7% 2,5pts • Six new residential facilities were signed, wit
Slide 20: Altiden: Clear improvement
Clear improvement • Net sales increased by 4 per cent, driven by increased MSEK Q4 2024 Q4 2023 Change, % occupancy in both elderly and social care. Net sales 329 317 4% EBITA 10 -14 - • Own management sales represents 72 (68) per cent of EBITA, % 3,0% -4,4% 7,4pts total net sales. Own management, %
Slide 21: Klara: Cautious market
Cautious market • Net sales decreased by 9 per cent due to a generally MSEK Q4 2024 Q4 2023 Change, % continued weak demand for staffing services. Net sales 106 116 -9% • EBITA decreased by 21 per cent and amounted to 11 EBITA EBITA, % 10,4% 11 12,1% 14 -21% -1,7pts (14) MSEK. • EBITA-margin at 10,4
Slide 22: Concluding remarks
Concluding remarks Mark Jensen CEO 22
Slide 23: Our financial targets
Our financial targets Profitability target achieved, leverage well below target and continued organic growth Growth Profitability Leverage FINANCIAL TARGET: FINANCIAL TARGET: FINANCIAL TARGET: <3.25X NET DEBT / ADJ. 8-10% ANNUAL GROWTH 9,5% ADJ. EBITA MARGIN EBITDA (EXCL. IFRS 16) 14 195 9,7% 6% * 9
Slide 24: Outlook post Q4 2024
Outlook post Q4 2024 Solid profitability from organic growth • Continued strong demand for care placements and increased occupancy expected. • Planned openings of new units in Nytida and Stendi during the first quarter of 2025. • Discussions with potential acquisition targets are ongoing. • Further
Slide 25: Q&A
Q&A 25
Slide 26: We make the world a better place, one person at a time
We make the world a better place, one person at a time ambea.com 26