Humana Inc. · NYSE:HUM
Humana — Q1 2018 Earnings Presentation
23 slides from Humana's earnings presentation, May 16, 2018
Slide 1: Q1 January – March 2018
Q1 January – March 2018 16 May 2018
Slide 2: Q1 financial highlights
Q1 financial highlights Revenue • Operating revenue was flat at SEK 1,648m (1,649). The home care operations now divested contributed with SEK 67m to revenue the corresponding quarter last year. • Organic increase in the quarter of 2.3% Operating profit • Operating profit (EBIT) of SEK 81m (66), an
Slide 3: Operational highlights in Q1 (I/IV): Individual & Family
Operational highlights in Q1 (I/IV) Individual & Family - “Profit growth from improved efficiency” • The positive trend for I&F continues in the quarter • We continue to see a clear improvement in profits in the first quarter due to implemented measures • Operating profit increased with 29% compared
Slide 4: Operational highlights in Q1 (II/IV): Personal Assistance
Operational highlights in Q1 (II/IV) Personal Assistance Personal Assistance - “Humana continues to gain market share” • Number of individuals entitled to personal assistance in the market continued to decline in the first quarter • The temporary stop to two-year reviews was implemented as of April
Slide 5: Operational highlights in Q1 (III/IV): Elderly Care
Operational highlights in Q1 (III/IV) Elderly Care – “Improving utilisation in recent start-ups” • Revenue development in the quarter impacted by last years divesture of home care operation (SEK 67m contribution to revenue in Q1 last year) • The solid organic growth continues, 25% driven by newly st
Slide 6: Operational highlights in Q1 (IV/IV): Other Nordics
Operational highlights Other in Q1 (IV/IV) Nordics Other Nordics - “Clear improvements in Norway and solid performance in Finland with focus on growth” • The Norwegian operations showed improvements in the quarter as a result of: • Cost efficiency program starting to materialise • Improved processes
Slide 7: Development of Group organic revenue growth & profit growth (%)
Development of Group organic revenue growth & profit growth (%) (%) 30 24,0 20 +9% 10 2,3 -1,7 0 -4,3 -10,0 -10 -20 Organic Revenue Development -30,0 Growth Operating Profit -30 -40 Q3 2017 Q4 2017 Q1 2018 7
Slide 8: Organic revenue development per quarter per segment (%)
Organic revenue development per quarter per segment (%) (%) 30 25 20 +9% 15 10 5 0 -5 -10 -15 Q3 2017 Q4 2017 Q1 2018 Individual & Family Elderly Care Personal Assistance Other Nordics 8
Slide 9: Humana Q1 2018 - Operating revenue
Operating revenue Humana Q1 2018 - SEK million Operating revenue Comments 0% • Operating revenue was flat at SEK 1,648m. The now divested home care 1,649 1,648 operations contributed with SEK 67m in Q1 2017 +9% – organic increase of 2.3% explained by: • strong organic growth within Elderly Care • po
Slide 10: Humana Q1 2018 - Operating profit
Operating profit (EBIT) Humana Q1 2018 - Operating profit SEK million % Comments Operating profit was SEK 81m (66), an 100 15 increase of 24%. +24% Positive impact from: +9% 81 – lowered costs in Individual & Family and Norway 66 – some improvements in utilisation 10 in the Norwegian operations Howe
Slide 11: Individual & Family – Q1 2018
Operating revenue Individual & Family SEK million 0% – Q1 2018 553 551 Comments • Operating revenue was flat at SEK 551m – organic decrease of -0.4% explained by lower utilisation within some areas Q1 2017 Q1 2018 • Operating profit increased by 29% Operating profit (EBIT) compared with last year to
Slide 12: Personal Assistance – Q1 2018
Operating revenue SEK million Personal Assistance 1% 653 – Q1 2018 648 Comments • Operating revenue marginally higher than same period last year at SEK 653m. • Operating profit decreased somewhat to SEK 35m (36), operating margin 5.3% Q1 2017 Q1 2018 (5.6) Operating profit (EBIT) SEK million % 40 -4
Slide 13: Elderly Care – Q1 2018
Operating revenue SEK million Elderly Care – Q1 2018 154 -30% 108 Comments • Operating revenue decreased by 30% in Q1 2018 to SEK 108m but organic growth of 24.9% from own managed elderly care homes. The revenue decrease is explained by the sale of home care operations. Q1 2017 Q1 2018 Operating pro
Slide 14: Other Nordics – Q1 2018
Operating revenue SEK million Other Nordics 15% 336 – Q1 2018 293 Comments • Operating revenue increased 15% to SEK 336m (293), driven by organic expansion in Finland. Organic increase at constant currency of 4.2%. • Operating profit increased to SEK 18m (13), margin 5.3% (4.4). The increase is expl
Slide 15: Cash flow – key highlights
Cash flow – key highlights SEK million Q1 2017 Q1 2018 Comments Operating cash flow before changes in 80 97 • Cash flow from operating working capital activities for the quarter was SEK Changes in working capital -57 -114 -17m vs. SEK 23m last year. Underline cash flow from operations 23 -17 • Inves
Slide 16: Q&A
Q&A
Slide 17: Appendix
Appendix
Slide 18: Financial targets
Financial targets Revenue growth Profitability • Annual growth rate • EBIT margin in the in the medium term medium term of of 8-10 percent, approximately 6 achieved through percent organic growth as well as bolt-on acquisitions Capital structure Dividend policy • The net debt in • 30 percent of net
Slide 19: Consolidated income statement
Consolidated income statement Jan$Mar Jan$Mar Apr$Mar Jan$Dec SEK/M 2018 2017 2017/18 2017 Net$revenue 1$648 1$649 6$541 6$542 Other$revenue 0 0 14 14 Operating/revenue 1/648 1/649 6/556 6/557 Other$external$costs 9262 9256 91$022 91$016 Personnel$costs 91$288 91$312 95$121 95$145 Depreciation 915 9
Slide 20: Consolidated balance sheet
Consolidated balance sheet 31#Mar 31#Mar 31#Dec SEK#M 2018 2017 2017 Assets Non7current#assets Goodwill 3(142 3(092 3(104 Other(intangible(assets 9 12 10 Property,(plant(and(equipment 421 450 413 Financial(assets 9 8 8 Total#non7current#assets 3#581 3#563 3#535 Current#assets Trade(receivables(and(o
Slide 21: Consolidated cash flow statement
Consolidated cash flow statement Jan$Mar Jan$Mar Apr$Mar Jan$Dec SEK/M 2018 2017 2017/18 2017 Profit/before/tax 58 52 257 250 Adjustment/for: Depreciation+ 15 14 61 60 Financial+items,+net 24 14 75 66 Cash/flow/from/operating/activities/before/changes/in/ working/capital 97 80 393 376 Changes+in+wor
Slide 22: Key ratios
Key ratios Jan$Mar Jan$Mar Apr$Mar Jan$Dec 2018 2017 2017/18 2017 Operating*revenue 1*648 1*649 6*556 6*557 EBIT,*% 4,9% 4,0% 5,1% 4,8% Interest<bearing*net*debt,*SEK*M 1*496 1*685 1*496 1*440 Return*on*capital*employed,*% 2,1% 1,8% 8,4% 8,2% Equity/assets*ratio,*% 38,3% 35,5% 38,3% 37,4% Operating*
Slide 23: Segments financials
Segments financials Operating*revenue*by*business*area Jan1Mar Jan1Mar Apr1Mar Jan1Dec SEK*M 2018 2017 % 2017/18 2017 % Individual)&)Family 551 553 0% 2)209 2)212 0% Personal)Assistance 653 648 1% 2)625 2)621 0% Elderly)Care 108 154 B30% 476 521 B9% Other)Nordics 336 293 15% 1)231 1)188 4% Other)rev