Slide 1: Q4 October – December 2016
Q4 October – December 2016 23 February 2017
Slide 2: An eventful 2016 characterised by growth and development
An eventful 2016 characterised by growth and development Summary of the year Growth and SOTE reform consolidation in Norway Acquisition of PHM Dec Nov Acquisition of Platea Drop in Challenging demand for market for migration- Personal Okt related Assistance services Reorganisation of LSS operations
Slide 3: Politics & markets for private welfare in the Nordics
Politics & markets for private welfare in the Nordics Market Key highlights Political discussion not reflected in underlying demand • Reepalu investigation continues to meet very hard criticism (now also from Sweden leading Social democrats), currently in consultation process • Overall strong demand
Slide 4: 2016 - revenue growth and profitability in line with financial targets, but a weaker fourth quarter
2016 - revenue growth and profitability in line with financial targets, but a weaker fourth quarter Key highlights Q4 • Operating revenue grew 11% to SEK 1,681m (1,521) • Organic decline in the quarter of -0.5% Revenue Full-year 2016 • Operating revenue grew 13% to SEK 6,362m (5,655) • Organic growt
Slide 5: Operational highlights in Q4 and for the full year (I/II)
Operational highlights in Q4 and for the full year (I/II) Individual & Family - Personal Assistance - “A good year, but a disappointing quarter” “All negatives in the cards now” • Growing with 16%, of which organic 4.4% • 2016 a year characterised by very challenging market conditions (financial eff
Slide 6: Operational highlights in Q4 and for the full year (II/II)
Operational highlights in Q4 and for the full year (II/II) Elderly Care - Other Nordics - “Improving and attractive pipeline” “Continued strong development” • Opening of the first own managed elderly care • Finland and Norway attractive markets for Humana, home and further three units under providin
Slide 7: Humana Q4 - Operating revenue
Humana Q4 - Operating revenue Operating revenue Comments • Operating revenue (excluding SEK million capital gain from sale and leaseback last year) increased by 15% to SEK 1,681m driven by Other Nordics 1,681 – above our growth target +15% – Organic decline of 0.5% • Acquisitions contributed with SE
Slide 8: Humana full-year 2016 - Operating revenue
Humana full-year 2016 - Operating revenue Operating revenue Comments • Operating revenue (excluding SEK million capital gain) increased by 14% to SEK 6,362m, an increase of SEK 767m, driven by Individual & Family and Other Nordics – organic growth of 1.1% 6,362 • Acquisitions contributed with +14% S
Slide 9: Humana Q4 - Operating profit
Humana Q4 - Operating profit Operating profit (EBIT) Comments SEK million % • Operating profit was SEK 73m 100 15 (78). Acquisitions contributed 78 73 with SEK 21m. 10 • Adjusted operating profit was 50 5.3% SEK 73m (60) 4.3% 5 • Operating profit margin of 4.3% 0 0 (5.3), adjusted margin 4.3% Q4 201
Slide 10: Humana full-year 2016 - Operating profit
Humana full-year 2016 - Operating profit Operating profit (EBIT) Comments SEK million % • Operating profit increased to 340 8 SEK 329m (312) Acquisitions contributed with SEK 91m 329 6 5.6% • Operating profit margin of 5.2% 5.2% EBIT (5.6) 320 4 312 Impact from: EBIT-margin 2 – cost of IPO SEK 40m –
Slide 11: Specification of items affecting comparability
Specification of items affecting comparability Oct-Dec Oct-Dec Jan-Dec Jan-Dec SEK M 2016 2015 2016 2015 Operating profit 73 78 329 312 Capital gains from sales of properties - 62 - 62 Cost in conjunction with CEO succession - -6 - -6 Goodwill impairment in home care - -36 - -36 Consulting fees for
Slide 12: Individual & Family Q4
Individual & Family Q4 Operating revenue Comments SEK million • Operating revenue increased by 560 5% +5% – Organic decline of 2.5% 535 mainly explained by conversion of units and lower occupancy • Operating profit decreased compared with last year to SEK Q4 2015 Q4 2016 34m (51) • Margin decreased
Slide 13: Personal Assistance Q4
Personal Assistance Q4 Operating revenue Comments SEK million • Operating revenue decreased by 3% to SEK 651m explained by: 800 673 651 – fewer clients and hours -3% 600 compared with last year – tough market conditions 400 • Operating profit decreased to 200 SEK 34m (45), operating margin 0 decline
Slide 14: Elderly Care Q4
Elderly Care Q4 Operating revenue Comments SEK million • Operating revenue decreased by 1% in Q4 2016 to SEK 147m 148 -1% 147 – positive effect from opening our elderly care home in Gävle – negative comparison due to divesture last year (SEK 13m) • Operating profit SEK -2m (-51 Q4 2015 Q4 2016 incl.
Slide 15: Other Nordics Q4
Other Nordics Q4 Operating revenue Comments SEK million 322 • Operating revenue increased 213% to SEK 322m (103), +213% primarily driven by acquisition of KOA and Arjessa in Finland • Organic growth at constant 103 currency of 27.4% • Acquisitions contributed with SEK 187m to revenue increase Q4 201
Slide 16: Central costs/other
Central costs/other Breakdown of central costs/other Comments SEK million • Central costs/other last year Costs Q4 2015 Q4 2016 included many one offs. Underline central costs were in Total other costs +30 -16 line between the quarters at Capital gain +62 - SEK 15m. Costs for change of CEO -6 - Cost
Slide 17: Cash flow lowered due to changed payment terms in Personal Assistance
Cash flow lowered due to changed payment terms in Personal Assistance Breakdown of cash flow Comments SEK million 2015 2016 • Cash flow for the year SEK -44m vs. SEK 258m last year. The Operating cash flow before changes decline is explained by: 367 379 in working capital – approx. SEK 300m impact C
Slide 18: Financial targets
Financial targets Revenue growth • Annual growth rate in the medium term of 8-10 percent, achieved through organic growth as well as bolt-on acquisitions Profitability • EBIT margin in the medium term of approximately 6 percent Capital structure • The net debt in relation to EBITDA is not to exceed
Slide 19: Humana position today and future
Humana position today and future A complete Nordic care offering…. …with clear target areas for future VISION A COMPLETE NORDIC SERVICE OFFERING Everyone is entitled to a good life • In 2016 Humana changed from being a Swedish care provider with presence in MISSION Norway to a pan-Nordic care provid
Slide 20: Q&A
Q&A
Slide 21: Appendix
Appendix
Slide 22: Consolidated income statement
Consolidated income statement Oct-‐Dec Oct-‐Dec Jan-‐Dec Jan-‐Dec SEK M 2016 2015 2016 2015 Net revenue 1 681 1 459 6 362 5 593 Other revenue 0 62 0 62 Opera6ng revenue 1 681 1 521 6 362 5 655 Other external costs -‐272 -‐234 -‐963 -‐794 Personnel costs -‐1 320 -‐1 157 -‐4 964 -‐4 430 De
Slide 23: Consolidated balance sheet
Consolidated balance sheet Dec 31 Dec 31 SEK M 2016 2015 Assets Non-current assets Goodwill 3 089 2 584 Other intangible assets 13 9 Property, plant and equipment 405 200 Financial assets 6 4 Total non-current assets 3 514 2 797 Current assets Trade receivables 523 440 Other current receivables 459
Slide 24: Key ratios
Key ratios Oct-‐Dec Oct-‐Dec Jan-‐Dec Jan-‐Dec 2016 2015 2016 2015 Opera@ng revenue 1 681 1 521 6 362 5 655 EBIT, % 4,3% 5,1% 5,2% 5,5% Interest-‐bearing net debt, SEK M 1 628 1 174 1 628 1 174 Return on capital employed, % 2,0% 2,8% 8,9% 11,3% Equity/assets ra@o, % 34,8% 28,5% 34,8% 28,5% Oper
Slide 25: Consolidated cash flow statement
Consolidated cash flow statement Oct-‐Dec Oct-‐Dec Jan-‐Dec Jan-‐Dec SEK M 2016 2015 2016 2015 Profit before tax 48 50 228 149 Adjustment for: Deprecia@on and impairment 15 47 50 82 Financial items, net 25 28 101 163 Other non-‐cash items 0 -‐27 0 -‐27 Cash flow from opera6ng ac6vi6es before ch
Slide 26: Segment financials
Segment financials Opera6ng revenue by business area Oct-‐Dec Oct-‐Dec Jan-‐Dec Jan-‐Dec SEK M 2016 2015 % 2016 2015 % Individual & Family 560 535 5% 2 214 1 902 16% Personal Assistance 651 673 -‐3% 2 645 2 689 -‐2% Elderly Care 147 148 -‐1% 580 585 -‐1% Other Nordics 322 103 213% 924 416 12