Lna Sante Sa · EURONEXT:LNA
Lna Sante Sa — FY2016 Earnings Presentation
52 slides from Lna Sante Sa's earnings presentation, March 2017
Slide 1: Financial presentation
Financial presentation March 2017
Slide 2: 2016 annual results and outlook
2016 annual results and outlook March 2017
Slide 3: Contents
Contents 1. Le Noble Age Group 2. Continuous transformation to achieve targeted development 3. 2016 Results 4. Outlook
Slide 4: LNA, treating and providing care
LNA, TREATING AND PROVIDING CARE A major player at 31 December 2016 providing care for 28% dependent people Aftercare and rehab 68 61% of revenue 39% of revenue authorized establishments from medium-term from long-term care care 5,000 ALF and specialized aftercare and rehabilitation clinics, psychia
Slide 5: A medium-sized family-owned company with a long-term vision
A medium-sized family-owned company with a long-term vision ► Families who joined forces 25 years ago to support an entrepreneur with an innovative project ► Shareholder-managers who are physical persons, working daily within the Group ► 81 managers/executives (NOBILISE) have signed the shareholders
Slide 6: Contents
Contents 1. Le Noble Age Group 2. Continuous transformation, targeted development 3. 2016 Results 4. Outlook
Slide 7: A clear vision, major challenges
A clear vision, major challenges Medical desertification Growth in the number of seniors A known environment Ambulatory Sequentia l care Patients become Budgetary players constraints Growth in chronic Innovative diseases services LNA, an offering that is continuously being transformed 7 2 Continuous
Slide 8: A clear solution closely adapted to changes in society
A clear solution closely adapted to changes in society Confort & élégance ranges Ambulatory hospital care at home Territorial foothold An increasingly innovative and responsible position Telemedici ne, IoT etc. Special fields: cardiology, cancer treatment 8 2 Continuous transformation, targeted deve
Slide 9: High added value specialities: cancer treatment
High added value specialities Cancer treatment: convincing first steps Recognition of “associated facilities for cancer treatment*” Serris and Ennery ► Intermediate link between acute care and ambulatory follow-up ► Prepare for the return home ► Examples: chemotherapy, monitoring of treatment, conse
Slide 10: High added value specialities: chronic diseases
High added value specialities Chronic diseases: proven know-how Institut de Diabétologie et Nutrition du Centre (IDNC): specialised in diabetes/obesity ► Multidisciplinary team: doctors, nurses, dieticians, psychologists, social workers, physical activity teachers etc. ► Expertise focussed on health
Slide 11: High added value specialities: technical support center
High added value specialities A comprehensive and efficient technical support center 11 2 Continuous transformation, targeted development
Slide 12: Bordeaux: successful re-engineering of four facilities
Ability to transform and enhance the offering Bordeaux : successful re-engineering of four facilities Takeover of four facilities 2018 • Le Bourgailh • Le Bourgailh 77 beds + 6 ADL places 77 beds + 6 ADL places • Les jardins de Leysotte • Le Château Lamothe 110 beds + 6 ADL places • 58 beds + 6 ADL
Slide 13: Pôle de Serris: a wider range of services
Ability to transform and enhance the offering Pôle de Serris (Seine-et-Marne): a wider range of services thanks to various partnerships 21 April 2016 25 May 2016 19 Dec. 2016 Conversion Hospital care Cancer of multi- at home treatment, (15 purpose beds (100 places) beds) Nov. 2013 6 Sept. 2013 July
Slide 14: Pôle de Serris: a wider range of services
Ability to transform and enhance the offering Pôle de Serris: a wider range of services thanks to various partnerships Cancer treatment, (15 Aftercare and beds) rehab: 59 multi- purpose beds 2006 2020 • ALF: 92 beds 2020 • Aftercare and rehab: 90 beds - Multi-purpose - Geriatrics 2006-2020: - Cancer
Slide 15: Landerneau: new site with ELSAN
Partnerships to transform the offering Landerneau (Finistère): opening of a new site in partnership with a private healthcare player, ELSAN September 2013 June 2016 2018 • Takeover of the Kerlena clinic • Geriatrics aftercare and rehab • 160 beds and 35 day hospital places • 127 beds managed day hos
Slide 16: Achères: new site with a local authority
Partnerships to transform the offering Achères (Yvelines): opening of a new site in partnership with a local authority Takeover in September 2013 2014 2015 2019 • Geriatrics aftercare • Neurology aftercare and rehab • Medical healthcare • Clinique de Bazincourt centre and rehab day hospital day hosp
Slide 17: Transformation of the facilities & beds in progress
Transformation of the facilities & beds in progress 31 December 2016 31% 69% in RS in RC ALF/BRH Aftercare and rehab/PSY 6,975 beds 4,796 beds Beds in EF* Beds undergoing restructuring Beds in EF* Beds undergoing restructuring 1,024 655 3,697 1,184 Hospital care at home Beds in EF* Beds undergoing r
Slide 18: Contents
CONTENTS 1. Le Noble Age Group 2. Continuous transformation to achieve targeted development 3. 2016 Results 4. Outlook
Slide 19: 2016 in figures
2016 in figures 2016 2016 Actual Targets Revenue from Operations €385m €393.8m I.e. + 9% +11.2% Organic growth of 4% 6.3% EBITDA margin of 12% 13.1% for established facilities Leverage < 3.5 1.70 All of the targets set for 2016 were exceeded 19 3. 2016 Results
Slide 20: Strong past performance
Strong past performance Consolidated revenue Revenue & EBITDA margin from operations In millions of euros In millions of euros + 83% 475 425 356 324 259 2012 2013 2014 2015 2016 Net financial debt from Operations and leverage Number of beds in operation In millions of euros 66 67 68 59 47 6,805 6,97
Slide 21: 2016 financial summary
2016 financial summary Regular growth in business ► Internal and external growth Revenue from Operations: + 11.2% ► Dynamics of the business lines increase in revenue of over 10% for long-term and medium-term care ► Balanced and stable business mix ALF/Healthcare revenue ratio of 61%:39% Stron
Slide 22: 2016 financial summary
2016 financial summary A controlled capital structure ► Cost of debt < 2.0% ► Leverage of 1.7 (net debt from Operations/EBITDA from Operations) compared with 3.0 at the end of 2015 ► Strengthening of the capital with the arrival of two long-term investors A resilient model site by site ► Cash flow f
Slide 23: 2016 Group key figures
2016 Group key figures Strong growth in earnings and organic reduction in debt In millions of euros + 15% 31/12/2015 31/12/2016 Real estate Operations + 15% 255 52,3 225 45,5 40,2 + 46% 144 35,0 147 11% Revenue 10.7% x 2.96* Revenue 8.5% 8.2% Revenue 15,5 x 1.70* Revenue 111 78 10,6 3.26% 2.5% Reven
Slide 24: 2016 acceleration in real estate sales
2016 acceleration in real estate sales ► Sustained dynamics for marketing in 2016 ► Operating margin including adjustments in asset values ► Real estate loss maintaining the interest of long-term Operations ► Preparation of about twenty deliveries over the period 2017-2020 In millions of euros Conti
Slide 25: 2016 Operations key figures
2016 Operations key figures Big improvement in operational performance In millions of euros + 23.4% 393,8 + 38.4% 354,1 + 34.4% 301,9 46,1 37,2 37,4 33,3 28,1 24,4 15, 10.5% 11.7% 9.5% 3 revenue 11, 11.0% 7.9% Revenue Revenue 8.1% reven 4 Revenue Revenue ue 4.3% 2.9% Revenue Revenue 2014 2015 2016 2
Slide 26: Revenue from Operations
Revenue from Operations Sustained increase in activity for all businesses Revenue 2016 2015 Breakdown of Total Organic Organic By activity In €m % In €m % Variation Growth Growth revenue revenue Long-term care France 214.3 54% 192.3 55% +11.5% +7.6% 4.1% Long-term care Belgium 27.0 7% 26.5 7% +1.6%
Slide 27: Analysis of EBITDA margin from Operations
EBITDAR Analysis of EBITDA from margin per sector Operations From revenue to EBITDA from Operations, controlled charges Variation In millions of euros 31/12/2016 31/12/2015 (%) Revenue 393.8 354.1 11.2% External purchases and expenses -129.6 -123.0 +5.3% Including rent -53.9 -50.9 +6.0% Payroll expe
Slide 28: Analysis of the EBITDA from Operations
Analysis of the EBITDA from Operations (excluding holding company) Improvement in the EBITDA margin in each sector ► ALFs at maturity, supporting the margin for established facilities at 13.1% ► Improvement in restructuring performance at 5.9% which brings the overall margin to 10.9% Established fac
Slide 29: Focus on Established facilities
Focus on “Established facilities” Established facilities Other facilities Facilities & beds 31/12/2016 31/12/2015 31/12/2016 31/12/2015 Number of facilities/Total 46/68 42/67 22/68 25/67 Number of beds 4,796 4,293 2,179 2,512 Revenue from Operations 277.6 251.2 115.8 102.3 EBITDA/Revenue 13.1% 13.2%
Slide 30: Operations profit and loss account
Operations profit and loss account Stable growth in earnings Variation In millions of euros 2016 2015 (%) Revenue 393.8 354.1 + 11.2% EBITDA 46.1 37.4 + 23.3% EBITDA margin (%) 11.7% 10.5% + 114 bps Operating income before tax and extraordinary 37.2 28.1 + 32.4% items Current operating margin (%) 9.
Slide 31: Diversified debt, according to project cycles
Diversified debt, according to project cycles Debt structure and maturity Consolidated net debt 300 4 Gross debt 251 255 327.3 3,4x 3,5 250 225 3,0x 3 NEU CP 82 (0,4 an) 200 138 144 2,5 Crédit- Net debt 150 146 2 syndiqué 70 224.8 (4,5 ans) 1,7x 1,5 100 Amortissable 62,9 (6,3 1 ans) 112 111 50 78 0,
Slide 32: Optimized capital structure
Optimized capital structure Decline in the cost of debt Highly flexible capital structure 4,5% Leverage Authorize 4,0% d ceilings 4.50 3,5% 3,0% 3,0% 2,5% €129m 2,0% 2,0% 1,5% 1.70 1,0% €183m 0,7% 0,5% 2011 2012 2013 2014 2015 2016 0.37 1,25 Gearing Expl. Immo. Global 32 3. 2016 Results
Slide 33: Continuation of the road map
Continuation of the road map ► Organic growth of 4% linked to transformation of the facilities ► EBITDA for established facilities of 12% of revenue ► Controlled leverage < 2.5 ► A total of 1,850 beds under preparation in established facilities ► Growth in earnings making it possible to continue the
Slide 34: Contents
CONTENTS 1. Le Noble Age Group 2. Continuous transformation to achieve targeted development 3. 2016 in figures 4. Outlook
Slide 35: Outlook
Outlook A business base showing steady growth, offering increased visibility Development of innovative services in the target territories Growing Together 2018/2022: a solution to the challenges facing society 35 4. Outlook
Slide 36: Controlled growth areas
Controlled growth areas Transformation of the existing facilities & beds into “established facilities”, excluding new developments 2016 2017 2018 2019 2020 2021 100% 97% 95% 89% 7,300 beds 6,900 beds 79% 6,600 beds 69% 6,200 beds Established facilities & beds 5,500 beds + 52%* between 2016 and 4,796
Slide 37: Visibility regarding the transformation of the facilities & beds
Visibility regarding the transformation of the facilities & beds Established 4 796 facilities 4 293 Nb lits 3 675 3 421 3 191 69% 3 064 2 790 68% % en croisière du parc exploité 2 290 76% 71% 64% 69% 74% Cash flow 27,1 27,5 29,1 70% 22 16,3 16,4 13,4 8,1 14,1% % EBITDA / CA 13,4% 13,2% 13,1% 11,3% 1
Slide 38: Increasing our influence
Increasing our influence 2006 2016 2021 1,544 beds 6,975 beds 128 beds/1 aftercare and 1,679 beds/13 aftercare and rehab facility rehab facilities 10,500 beds 1 Health Centre 1,416 beds/16 ALFs/BRHs 4,881 beds/48 ALFs/BRHs > 7,000 employees 415 places/7 hospital care at home facilities 1,000 employe
Slide 39: Development of innovative services in the target territories
Development of innovative services in the target territories A “known” health environment An upgradeable and innovative offering Unifying know-how and attractiveness Since 2008, 1,252 beds taken over from public players and associations (11 facilities) A surgical and innovative development approach
Slide 40: Growing Together
Growing Together An inclusive and unifying approach for assessing the Growing Together plan: ► Business work groups ► Appraisal interviews on different sites ► Specific work groups for the ExCom and Liaison Committee ► Electronic consulting of all employees Topics for reflection: ► Medical offering
Slide 41: High-quality performance and profitable growth
High-quality performance and profitable growth ► A total of 10,500 beds with 3,000 beds from targeted external growth in our health territories ► A territorial foothold with segmented and specialised offerings ► Organic growth of almost 4% over the period 2016-2021 with constant prices ► Target of 7
Slide 42: Thank you for your attention
Thank you for your attention
Slide 43: Appendices
APPENDICES
Slide 44: Size of the sites synonymous with efficiency
Size of the sites synonymous with efficiency Change in the average size Established 103 145 174 120 facilities in 2020 variation 5% 4% 23% 12% 03/2017 98 139 142 107 All sectors ALF BRH Aftercare and rehab Average Sector < 80 < 80 < 70 A major choice 44 Appendices
Slide 45: Glossary
Glossary ARS Net financial debt Regional healthcare agency Gross financial debt after deducting cash and CRAM cash equivalents Regional health insurance office Net financial debt from Operations Organic Growth gross financial debt from Operations after corresponds to the variation in revenue
Slide 46: Glossary
Glossary EBITDA Facilities undergoing restructuring or being opened Earnings before Interest, Taxes, Facilities taken over or opened within the last Depreciation, and Amortization year or so EBITDAR Renovation and/or extension work in progress Implementation of the Group’s standards Earnin
Slide 47: Glossary
Glossary GMP PMP Groupe Iso Ressource weighted average (assessment of dependence) PATHOS weighted average (assessment of the technical care required) HAD Hospital care at home PRM Person with reduced mobility Financial leverage (Net debt from Operations/EBITDA from PUI Operations) measures
Slide 48: Glossary
Glossary Operating ROCE Total treatment price Return On Capital Employed In ALF, this refers to inclusion in the ALF measured by the ratio between the budget of the fees of external private operating result (before or after practitioners, such as GPs, physiotherapists tax)/capital employed (shar
Slide 49: Simplified cash flow statement and cash
Simplified cash flow statement and cash Variation In millions of euros 2016 2015 in value Cash at start of previous year 68.8 35.5 33.3 OPERATING ACTIVITIES 32.1 20.2 11.9 Restated cash flow from operating activities 45.5 42.4 3.1 Including Operations 44.7 34.5 10.2 Variation in the working capital
Slide 50: Operations + Real Estate balance sheet
Operations + Real Estate balance sheet 31/12/2016 31/12/2015 Goodwill Goodwill 87,1 Sharehold 87,7 Sharehol 123,8 ders’ 163,7 ers’ equity equity 17,6 Provisions Intangible assets 17,9 Provisions 46,8 Net deferred taxes 219,5 39,9 Net deferred taxes Intangible 216,8 assets 36,2 WCR (negative) 24,8 WC
Slide 51: Optimized debt structure
Optimized debt structure Reference rate 31/12/2016 31/12/2015 3 month Euribor rate (12 month period) -0.26% -0.02% 5-year mid-swap rate 0.08% 0.33% Group Debt 31/12/2016 31/12/2015 1 - Gross cost of debt 1.9% 2.3% SFAF 30/03/17 31/12/2016 SFAF 07/04/2016 31/12/2015 2 – Disintermediated component * 6
Slide 52: Financing structure
Financing structure 5-year RCF of €149.4m (extended by one year: 07/2020 to 07/2021) ► Purpose: replace the bilateral bank liquidity lines that are not very liquid, and provide a backup for the short- term negotiable securities programme (e.g. commercial papers) ► Assets financed: operating licences