Humana Inc. · NYSE:HUM
Humana — Q1 2022 Earnings Presentation
23 slides from Humana's earnings presentation, May 5, 2022
Slide 1: Interim report January–March, Q1, 2022
Everyone is entitled to a good life. Interim report January –March, Q1, 2022 Johanna Rastad, Noora Jayasekara, 5 May 2022
Slide 2: Growth despite challenging external environment defining the first quarter
Growth despite challenging external environment defining the first quarter • A quarter challenged by omicron and global instability • The pandemic situation improves end of the quarter • Majority of restrictions removed; total absence rates and sick leave improving • Despite the challenging situatio
Slide 3: Financial highlights Q1 2022
Financial highlights Q1 2022 Growth • Revenue: SEK 2,147m (1,986), +8% vs LY • Organic growth: 1.8% (2.4) Profitability • Operating profit: SEK 77m (112m), -32% • Operating margin: 3.6% (5.7) Cash flow & leverage • Operating cash flow: SEK 115m (197) • Net debt: SEK 4,408 (3,688), +SEK 720m • Net de
Slide 4: Satisfied employees and new HQI
Satisfied employees and new HQI • Yearly employee survey show satisfied employees and progress in several already strong KPIs • Satisfaction despite extremely high sick leave and absence rates in the beginning of the quarter • Employee net promotor score (eNPS) increasing from 15 to 19, important fo
Slide 5: Well managed quarter
Well managed quarter Personal Assistance • Solid performance continued in Q1 2022, in line with Q1 2021 • Higher reimbursement partly offset by decrease in assistance hours • Recruitment and staffing increasingly a challenge, the pandemic adding pressure • Digital signing to Insurance Board launched
Slide 6: Focus on closing the gap
Lar Focus on closing the gap • Weak operating profit partly due to pressure from external factors; omicron and high energy costs • Four new units opened, but still not compensating for previously closed units • Adaptation work in division Young completed • Occupancy levels and personnel costs challe
Slide 7: Strong organic growth, pandemic affecting operations
Strong organic growth, pandemic affecting operations • Highly affected by external factors, primarily impacting staffing and utilisation • Utilisation developing in positive direction towards the end of quarter • Ramp-up of the five new elderly care homes under own management is still cost bearing •
Slide 8: Omicron slowed down development in Finland
fjsökdfösjsdfs Omicron slowed down development in Finland Finland • Record high sick leave affecting revenue and cost negatively • Performance in Child Welfare services and Housing services showing signs of recovery • Two new units in child welfare service opened • Individual and family company Kall
Slide 9: Strong organic growth in Norway
Strong organic growth in Norway • Continues to develop well with organic growth • Growth in assistance (BPA) and improved efficiency in Children and Youth • Higher educational requirements for new recruitments as of 1 January 2022 • Focus on ensuring employer attractiveness Norway Interim Report Q1
Slide 10: CFO highlights Q1 2022
Ändra bild på mig till en utan bakrund, alt ändra Johannas till en med bakgrund Ngn måste läsa rapport och prez med “tempus”-glasögon Förslag -> Stable performance in CFO highlights Q1 2022 PA and NO (varken no eller pa kommer att kunna outperforma I kommande kvartal som det ser ut nu) • The challen
Slide 11: Operating revenue
Q1 Operating revenue +8,1% • An increase in revenues by 8.1% in Q1 • Organic growth 1.8% (2.4) in Q1 • Acquired operations accounted for SEK 99m in Q1 • Negative impact from omicron • Occupancy within elderly care, outpatient care and other operations were affected • Fewer assistance hours in Person
Slide 12: Profitability
Q1 Profitability -31,9% • Operating margin 3.6% (5.7) in Q1 • Operating profit declined by -31.9% in the quarter • The pandemic has had a negative effect on the group, across all segments affecting profitability with approx. SEK 15m • Total effect on the group of external factors approx. 20m • Close
Slide 13: Personal Assistance
Revenue +1,2% Personal Assistance • Revenue increased by 1.2% • Organic growth was 0.1% (2.5) • Higher reimbursement • Offset by fewer assistance hours 2020 2021 2022 , Operating revenue, SEK m • Acquired operations contributed • Operating profit was SEK 50m (50) Profitability • Operating margin of
Slide 14: Individual & Family
Lar Revenue +4,5% Individual & Family • Revenue increased by 4.5% • Acquisitions drive revenue increase • Organic growth of -7.1% (3.6) mainly due to closed units within child and youth segment 2020 2021 2022 , Operating revenue, SEK m • Operating profit decreased by 43.7% • Operating margin was 4.0
Slide 15: Elderly Care
Revenue Elderly Care +30,1% • Revenue increased by 30.1% • Organic growth was 30.2% (3.1) • Five new elderly care homes under own management 2020 2021 2022 , Operating revenue, SEK m • Operating margin was -1.8% (3.6) • Ramp-up costs for the new elderly care homes Profitability • High level of sick
Slide 16: Finland
Revenue +13,9% Finland • Revenue increase of 13.9% • Organic growth was 1.7% (-4.6) • Organic growth is primarily driven by newly opened units in the child and youth segment 2020 2021 2022 • Revenue increase driven by acquisition in the , Operating revenue, SEK m quarter Profitability • Operating pr
Slide 17: Norway
Revenue +17,7% Norway • Revenue increase of 17.7% • Organic growth was 10.8% (11.2) • Increased number of personal assistance customers • Changes in pricing in special service 2020 2021 2022 accommodation , Operating revenue, SEK m Profitability • Operating profit increased by 8.7% • Operating margi
Slide 18: Central costs
Underlying central costs Central costs • Underlying central costs slightly above last year SEK m Q1 2021 Q1 2022 • Positive effects of IFRS 16 of SEK 17m Underlying central costs 27 29 on central costs (and operating profit) in the quarter Acquisition related costs 0 0 Effects of IFRS16 -15 -17 Sale
Slide 19: Financial position
Leverage, development Financial position • Interest-bearing net debt increased, year-on-year, by SEK 720m to SEK 4,408m (3,688) • Net debt increased due to lease liabilities related to investments in new units, acquisitions and share buybacks • Leverage, interest-bearing net debt in relation to adj.
Slide 20: Cash flow
Operating cash flow Cash flow • Operating cash flow in Q1 amounted to SEK 115m (197) • The lower cash flow is mainly due to changes in working capital related to delayed payments for assistance SEK m Q1 2021 Q1 2022 operations in Sweden Operating profit 112 77 • Cash flow for the quarter SEK -123m D
Slide 21: Financial targets and development
Financial targets and development Revenue growth Profitability Capital structure 2020 2021 2022 Operating margin LTM, % Leverage, Interest-bearing net debt/ Growth, % adj EBITDA, times Financial target, operating margin, % Organic growth, % Financial target, leverage Operating profit, SEKm Financial
Slide 22: Summary
Summary • Maintained growth and recovering operations • Weak result, explained both by external and to some extent internal factors • Acquisition of individual & family company in Finland • Opened two new units in Finland and four in Individual & Family • Strong and improved employee KPIs • New Qual
Slide 23: Thanks!
Thanks! Financial calendar Further information 2022 Annual General Meeting 10 May 2022 Ewelina Pettersson Interim report Jan-Jun, Q2 2022 18 Aug 2022 IR manager Interim report Jan-Sep, Q3 2022 10 Nov 2022 +46 73 074 7912, ewelina.pettersson@humana.se