Humana Inc. · NYSE:HUM
Humana — Q2 2021 Earnings Presentation
23 slides from Humana's earnings presentation, Aug 20, 2021
Slide 1: Interim report April-June, Q2, 2021
Everyone is entitled to a good life. Interim report April-June, Q2, 2021 Rasmus Nerman, Noora Jayasekara, 20 August 2021
Slide 2: Continued steady progress in the second quarter
Continued steady progress in the second quarter • Good overall progress in Group • Operationally, ramp up of four OwM units in Elderly Care in focus • Pandemic well under control but still a focus • Situation improved following vaccinations of both residents and staff • Occupancy still dampened CEO
Slide 3: Financial highlights Q2 2021
Financial highlights Q2 2021 Growth • Revenue: SEK 2,058m (1,980), +4% vs LY • Organic growth: 3.4% (3.4) Profitability • Operating profit: SEK 107m (100m), +7% • Adj. operating profit: SEK 107m (83m), +28% • Operating margin: 5.2% (5.1%) Cash flow & leverage • Operating cash flow: SEK 251m (221) •
Slide 4: Quality: Intense quarter
Quality: Intense quarter • Most of customers, clients and employees have received Covid-19 vaccine • Situation well under control but we continue to apply strict procedures for all care operations • Humana Quality Index, HQI, stable a 94 in Q2 • Customer satisfaction index at 85% • Number of serious
Slide 5: Stable path for personal assistance
Personal Stable path for personal Assistance assistance • Solid performance continues • Growth of 3%, of which organic growth was 1.1% • An investigation on the right to personal assistance was presented during the quarter. If proposals are realised, it would be positive for individuals with functio
Slide 6: Stable progress in turbulent quarter
Stable progress in turbulent quarter • Steady performance continues with stable demand in all segments • Tragic incident in one of our care homes (Platea) • Thorough investigation conducted • Platea’s residential care homes immediately closed • Actions taken to further develop systematic quality con
Slide 7: An intense quarter with four new units opened
An intense quarter with four new units opened • The ramp up of new units under own management is proceeding according to plan • Four new units with a total 260 apartments opened; Norrtälje, Vallentuna, Ängelholm and Falkenberg • Another unit to be opened in Norrtälje in Q3 • The pandemic continues t
Slide 8: Finland: Improvement efforts paying off
fjsökdfösjsdfs Improvement efforts paying Finland off • Improvement efforts in Finland moving in the right direction • Occupancy improving • The pandemic continues to have a negative effect on revenue due to lower occupancy • Organic growth of 1% after two quarters with negative growth • Additional
Slide 9: Momentum in Norway continues
Momentum in Norway continues • Operations in Norway continue to develop well • Strong organic growth of 15.7 percent mainly driven by • Net customer intake in assistance (BPA) and disabled care (HOT) • Stable occupancy in I&F segments • During the end of the quarter Humana also won several smaller t
Slide 10: CFO highlights Q2 2021
CFO highlights Q2 2021 • Financially another stable quarter – leverage in line with target and strong operative cash flow • Continued progress within digitalisation • A new financing agreement signed ensuring our long-term financing. Improved terms compared to previously. CFO __________ Noora Jayase
Slide 11: Operating revenue
Q2 Half-year Operating revenue +3% • An increase in revenues by 4% 4 044 3 918 • Individual & Family, Personal Assistance and Norway contributing +4% 1 980 2 058 • Organic growth 3.4% (3.4) • Acquired operations accounted for SEK 40m • Somewhat negative impact from Covid- 19 • Lower occupancy in eld
Slide 12: Profitability
Q2 Half-year Profitability • Operating margin 5.2% (5.1) in Q2 • Operating profit increased by 7%, adjusted operating profit by 28% • All business areas contributing to +11% the increase except for Elderly Care 219 219 198 +7% 181 • Covid-19 affected the profit marginally 100 107 107 • Lower occupan
Slide 13: Personal Assistance
Revenue Profitability Personal Assistance • Revenue increased by 3% +3% • Organic growth was 1.1% (5.4) 733 756 • Higher reimbursement, partly offset 22% by fewer assistance hours 40 12 35 • Acquired operations contributed 35 10 30 29 • Operating profit increased by 22% 8 25 • Operating margin was 4
Slide 14: Individual & Family
Profitability Individual & Family Revenue • Revenue increased by 9% +9% • Organic growth of 4.2% (-0.7). 578 532 2% • Stable occupancy in several segments 49 50 50 12 • New units and acquisitions 40 10 contributed 8 30 • Operating profit increased by 2% 6 • Operating margin was 8.7% (9.3) 20 4 • Sta
Slide 15: Elderly Care
Revenue Profitability Elderly Care • No revenue growth 0% • Lower occupancy due to Covid-19 155 155 • New units 1 1 12 • Operating profit was negative, SEK -4m 0 10 • Operating margin was -2.4%(0.7) 8 -1 • Lower occupancy due to Covid-19 6 affected the profit -2 4 • Costs for starting up the new -3
Slide 16: Finland
Revenue Profitability Finland • Revenue decrease of 4% -4% • Organic growth was 1.0% (0.0) 338 325 • The organic growth in the second 42% quarter is due to increased 16 16 12 occupancy 14 10 12 11 • Operating profit increased by 42% 8 10 • Operating margin was 4.8% (3.2) 8 6 • Increased occupancy an
Slide 17: Norway
Revenue Profitability Norway • Revenue increase of 20% +20% • Organic growth was 15.7% (9.5) 240 • Increase in customers in personal 201 39% assistance and the care home 25 12 22 segment 20 10 • Operating profit increased by 39% 16 8 15 • Operating margin for the quarter 6 was 9.3% (7.9) 10 4 • The
Slide 18: Central costs
Q2 Central costs Q2 Q2 • Underlying central costs slightly SEK m 2020 2021 below previous year Underlying central costs 33 29 • Capital gain from sale of real estate Acquisition related costs 0 0 decreased central costs Q2 last year Effects of IFRS 16 -9 -16 • Positive effects of IFRS 16 of Sales of
Slide 19: Financial position
Financial position Leverage, development • Interest-bearing net debt increased, year-on-year, by SEK 318m to SEK 3,909m (3,591) • Debt increased due to 8 7,1 investments in new elderly care 7 6 5,7 6,0 5,4 homes but was more than 5,2 5 4,6 4,5 4,3 4,4 4,5 compensated for by higher 4 profit 3 2 • Lev
Slide 20: Cash flow
Operating cash flow Cash flow • Operating cash flow SEK 251m (221) • The higher cash flow is mainly due to improved profit SEK m Q2 2020 Q2 2021 Operating profit 100 107 • Cash flow for the quarter SEK 133m (185), where Depreciation 93 102 • Net cash flow from operating Changes in working capital 61
Slide 21: 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 4,5 5 4,2 80 176 172 4 4,3 4,4 4,1 4 3,4 3,4 3,4 4 2,9 3 2,8 2,2 2,0 2,6 98 100 101 112 107 40 77 71 2 2 3 45 1 0 0 0 2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Slide 22: Summary
Summary ✓ Q2 2021- another stable quarter ✓ Humana continued to grow organically, four new elderly care homes opened in the quarter ✓ Remained focus on the pandemic ✓ Improved operating profit ✓ Strong cash flow ✓ New agreement ensures long-term financing Priorities going forward ▪ Continued focus o
Slide 23: Thanks!
Thanks! Financial calendar Further information Anna Sönne, Head of IR and Sustainability, Interim report Jan-Sep and Q3 2021 11 Nov 2021 Year-end report Jan-Dec and Q4 2021 10 Feb 2022 +46 70 601 4853 anna.sonne@humana.se