Attendo Ab · OMXSTO:ATT
Attendo Ab — Q4 2020 Earnings Presentation
23 slides from Attendo Ab's earnings presentation, Feb 10, 2021
Slide 1: Q4 Report Presentation
Q4 REPORT PRESENTATION Martin Tiveus CEO / Fredrik Lagercrantz CFO 10 February 2021
Slide 2: Q4 highlights: Continued positive development in Finland; new financial targets for 2023
Q4 highlights: Continued positive development in Finland. Attendo presents new financial targets for 2023 • Continued good organic growth and improved result due to turnaround in Finland • Corona-compensation from previous quarters in 2020 came in Q4 P&L • Finland turn-around according to plan – Hig
Slide 3: Group highlights in Q4
Group highlights in Q4 Net Sales, growth1 EBITA2, SEKm EBITA2 margin 2% (5%org) 193 6.3% Q3/20: 1% Q4/19: 7% Q3/20: 269 Q4/19: 139 Q3/20: 9.0% Q4/19: 4.6% Quality Index Leverage (adj ND/adj EBITDA2) 86% 2.6x Q3/20: 85% Q4/19: 84% Q3/20: 3.8x Q4/19: 3.6x Total Occupancy3 Opened beds in own operation3
Slide 4: Towards a more balanced opening pace
Own operations: openings of new beds Towards a more balanced opening pace No. of opened beds in own operation1 , by quarter and rolling 12 months 2,000 3,000 Openings R12 (right axis) Openings by quarter Attendo Finland (left axis) 2,500 Openings by quarter Attendo Scandinavia (left axis) 1,500 2,00
Slide 5: Balanced portfolio of new projects with bias on Scandinavia
Beds in operation and under construction Balanced portfolio of new projects with bias on Scandinavia No. of beds in operation1 17,260 17,650 17,485 17,668 16,216 16,470 16,618 +6% 15,288 15,923 14,536 14,889 12,635 13,216 13,320 13,529 13,460 13,535 9,326 12,290 12,574 12,868 12,929 7,833 8,102 8,44
Slide 6: Positive development in spite of negative effects from the pandemic
Occupancy development: vintage breakdown Positive development in spite of negative effects from the pandemic Occupancy in own homes1 100 95 90 90 88 2016 and earlier 85 85 85 2017 82 82 81 81 80 80 80 80 79 79 80 78 79 2018 2019 75 2020 70 Mikeva 65 Total occ. 60 55 50 45 40 35 30 25 20 jan-17 apr-1
Slide 7: Mature margin increased in Q4
Mature units: margin and net sales development Mature margin increased in Q4 Group reported R12 adjusted EBITA margin development % Group (excl. corona & capital gains) 1 12 11.4% 11.3% 11.2% 11.1% Mature 2 10.4% 10.3% 10.6% 10.7% 10.6% 10.6% 10.0% 10.1% 9.7% 10 11.1% 10.8% 10.1% 10.1% 10.3% 10.5% 8
Slide 8: P&L: Positive organic growth and higher EBITA
P&L: Positive organic growth and higher EBITA SEKm Q4 2020 Q4 2019 Change (%) Net sales 3,065 3,054 0 Organic, % 4.8 3.6 - Acquired, % -2.5 3.2 - Currency, % -1.9 1.6 - Operating profit (EBITA)1 193 139 39 Operating margin (EBITA)1, % 6.3 4.6 - Amortization -31 -35 - Operating profit (EBIT)1 162 104
Slide 9: Attendo Scandinavia Q4 2020
Attendo Scandinavia Q4 2020 Stable underlying result adjusted for corona impact Net sales Net sales per service offering, Q4 2020 • Sales negatively impacted by divestments of Norwegian operations Individual and family care • Lower occupancy vs last year but higher versus Q3 Own care homes 1 Home ca
Slide 10: Attendo Finland Q4 2020
Attendo Finland Q4 2020 Positive effect of turn-around program continues Net sales Net sales per service offering, Q4 2020 • Growth due to sales in new own homes as well as price increases Own care homes - Other (Disabled care and 6% Profits social psychiatry) • Higher number of occupied beds due to
Slide 11: Cash flow: Stable free cash flow. Reduced net debt
Cash flow: Stable free cash flow. Reduced net debt SEKm Q4 2020 Q4 2019 Operating profit (EBITA)1 193 139 Change in working capital, paid tax, non cash items and depreciation 369 467 Cash flow after changes in working capital 562 606 Net investments in tangible and intangible assets -40 -109 Operati
Slide 12: Summary
Summary • Positive year over year development with a clear improvement in Finland • Continued progress with the turn-around program expected for Finland in 2021 • Scandinavia starts the year with a low occupancy • Good progress vaccinations – gradual normalization
Slide 13: Attendo – The Nordic leader in care services
ATTENDO – THE NORDIC LEADER IN CARE SERVICES Introduction to Attendo’s value creation potential and new financial targets February 2021
Slide 14: A pioneer in the Nordic care industry
A pioneer in the Nordic care industry – More than 35 years of care services, innovations and growth Net sales (BSEK) No. own beds 14 20,000 12.3 11.9 12 11.2 11.0 16,000 10.2 9.8 10 +13% 9.0 8.5 7.9 12,000 8 7.3 6.7 6.3 6 8,000 5.1 4 3.5 2.7 2.9 4,000 1.9 2 1.2 1.2 1.3 1.4 0.6 0.7 0.8 0.8 0.7 0.1 0.
Slide 15: Attendo's purpose – Create value for customers, relatives & society
Attendo’s purpose – Create value for customers, relatives & society I II % Quality: Value for customers, Customer experience & Wellbeing + Operational efficiency = relatives and society Highest customer Helping more people for satisfaction in every the tax money spent on location we operate care Mea
Slide 16: Strategy for growth
Strategy for growth Strategic growth focus Opportunistic growth Expansion of Attendo Own Units Acquisitions Managing outsourced units No of own beds1 • Bolt-on acquisitions key part of the • Nursing home and Disabled care 18,000 17,668 In operations 16,618 Attendo model to date market with share of
Slide 17: The Attendo care model drives resilient margins in mature units
The Attendo care model drives resilient margins in mature units1 Units optimize performance based on a joint care model Stable margins in Attendo mature units EBITA %, mature units in Attendo Sweden1 Customer-centric 12 Attendo care model values & culture 10% 10% 11% 10% 10% 10% 8 Operational excell
Slide 18: A strong core model over time – but margins impacted by three key factors
A strong core model over time – but Attendo overall margins impacted negatively by three key factors in recent time Stable margins over time – recent negative pressure Key factors driving margin pressure EBITA %, adjusted 10 9.8% 9.7% 9.5% 9.2% 9.1% 9.1% 9.5% i. Rapid expansion diluting 8 occupancy
Slide 19: Summary – Attendo focus areas for value creation
Summary – Attendo focus areas for value creation 1 • Drive growth and profit levels via ongoing turn-around and Covid recovery Execute on turn-around • Finland: Improve occupancy and continue price renegotiations of all contracts & recover Covid impact • Sweden: Accelerate ’catch-up’ of occupancy le
Slide 20: New financial targets to 2023
New financial targets to 2023 Strategy for a better Attendo Key objectives ahead Financial ambition (old GAAP / IAS17) Customer Operational Attendo is in a Mid-term 2023 Adjusted EPS experience efficiency turn-around & Wellbeing situation targets > 4 SEK/share 2023 (based on organic growth) Highest
Slide 21: Adjusted EPS 2020
Adjusted EPS 2020 Items affecting Total Adjusted SEKm Reported Acquisitions IFRS16 comparability adjustments earnings Net sales 12,288 12,288 Operating profit before amortizations 2,053 -1,454 -1,454 599 and depreciations (EBITDA)1 Depreciation -1,256 1,032 1,032 -224 Operating profit (EBITA)1 797 -
Slide 22: Elderly boom in the Nordics taking off beyond 2023
Elderly boom in the Nordics taking off beyond 2023 – Attendo ready to drive growth short-term and on back of demographic wave Rapid increase of 85+ population from 2023 onwards No. of 85+ years (k) +39% Attendo expansion pipeline 400 391 will grow to time the +6% increased demand 2024- +29% 263 280
Slide 23: Thank you
Thank you