Attendo Ab · OMXSTO:ATT
Attendo Ab — Q1 2024 Earnings Presentation
19 slides from Attendo Ab's earnings presentation, Apr 24, 2024
Slide 1: Q1 Report Presentation
Q1 REPORT PRESENTATION Martin Tivéus CEO / Mikael Malmgren CFO 24 April 2024
Slide 2: Finland drives overall improvement
Net sales and EBITA (SEKm) Q1 2024 highlights: Q1 2023 Q1 2024 Finland drives overall improvement +8% +45 4,386 161 4,044 116 • Sales SEK 4.4 bn - growth of 8.5%, whereof organic growth 8% • Lease adjusted EBITA SEK 161m (116) Net sales Lease adjusted EBITA • Finland: continued positive effect from
Slide 3: Improving quality of life for residents
Sustainability Improving quality of life for residents • Attendo’s work with quality of life aims to improve health and well-being for each individual in our care • Since 2021, Attendo has implemented methods to measure quality of life − ASCOT (Adult Social Care Outcome Toolkit) used in Sweden − RAI
Slide 4: Stable occupancy development in Q1
Occupancy development Stable occupancy development in Q1 Occupancy in all homes1,% Total Attendo Scandinavia Attendo Finland 100 95 90 86 86 86 85 86 86 85 84 84 85 83 83 83 84 83 83 84 84 82 82 82 82 81 81 81 80 80 75 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2018
Slide 5: Margin recovery driven by Finland
Margin and net sales development Margin recovery driven by Finland. Positive development Scandinavia own operations offset by ended outsourcing contracts and losses in Denmark R12 Net sales, SEK Billion 17.3 17.6 18 16.7 15.8 16 14.5 15.1 13.6 14.0 14 12.9 13.3 12.3 12.6 12 10.5 10.8 9.8 10 9.1 7.9
Slide 6: High organic growth mainly due to improved terms in Finland
Sales development High organic growth mainly due to improved terms in Finland Net sales; SEK million 8% 4,386 20 343 4,044 -20 Q1 2023 AS - organic AF - organic Acquisitions Currency Q1 2024 AS = Attendo Scandinavia; AF = Attendo Finland 6
Slide 7: Turnaround in Finland drives improvement
EBITA development Turnaround in Finland drives improvement EBITA, SEK million +51 1 292 -2 6 241 64 -18 131 125 +45 161 116 Q1 2023 AS - lease AF - lease Other IFRS16 effect Currency Q1 2024 adjusted adjusted IFRS16 effect Lease adjusted 7
Slide 8: Attendo Finland Q1 2024: Continued progress
Attendo Finland Q1 2024 Continued progress High organic growth Net sales per service offering, Q1 2024 • High organic growth due to new terms Q2 2023 Other • Stable occupancy versus last year Individual and family care 7% and social psychiatry 12% Continued positive profit development Disabled care
Slide 9: Attendo Scandinavia Q1 2024: Improved result from own operations
Attendo Scandinavia Q1 2024 Improved result from own operations Net sales per service offering, Q1 2024 Slight improvement in occupancy Individual and family care • Slightly higher occupancy y/y offset by ended outsourcing and social psychiatry Other contracts Disabled care 13% 0% 7% • Net sales inc
Slide 10: Cash flow impacted by improved profit, offset by working capital
Cash flow impacted by improved profit, partially offset by working capital Easter end of quarter close and buy back of shares SEKm Q1 2024 Q1 2023 R12 Operating profit (EBITA) 292 241 1,384 Change in, paid tax, non cash items and depreciation 431 400 1,712 Cash flow before changes in working capital
Slide 11: Improved EPS and low net debt to EBITDA ratio
Key financial metrics Improved EPS and low net debt to EBITDA ratio EPS bridge; Q1 2024 vs Q1 2023; SEK Lease adjusted EBITA margin, % (R12) Adjusted EPS Q1 2023 0.43 5 4.5% 4.3% Changes in lease adjusted EBITA 0.28 4 3.7% 2.8% 3 Changes in financial items -0.05 1.9% 2 Changes in income tax -0.08 1
Slide 12: Summary Q1
Summary Q1 • Continued effect from turnaround in Finland drives improvement in financial performance • Strong financial position • Team Olivia part of Attendo from Q2 • Current goal to achieve adjusted EPS of SEK 4 in 2024 remains • We are entering a new value creation phase, with forward-looking ta
Slide 13: Attendo financial targets and value drivers ahead
Attendo financial targets and value drivers ahead 13
Slide 14: Focus 2021-2023 has been on restoring profitability
Focus 2021-2023 has been on restoring profitability while improving operations Focus 2021-2023: ✓ Strengthened leadership and • Employee, customer and relative operational capabilities satisfaction at all time high ✓ Turn-around Finland after new staffing regulations • Unit manager retention signifi
Slide 15: Attendo entering a new growth phase
Attendo entering a new growth phase – scaling for the future and driving profitable growth 2020-23 Focus on restoring Focus 2024-2026: profitability & improving operations ✓ Strengthened leadership and ▪ Further restore and grow profit operational capabilities level in existing markets ✓ Turn-around
Slide 16: Target earnings growth towards adj. EPS > 5.50 SEK 2026
Attendo target earnings growth towards adj. EPS > 5.50 SEK 2026 Indicative adjusted earnings per share 2022-2026, SEK >+80% 1 • >100 units added, expected to further 3 >5.5 drive economies of scale and efficiency 2 • Impact on adjusted EPS > SEK 0.50, including synergies 1 2 • Balanced organic growt
Slide 17: Stable EBITA growth: balanced organic growth and bolt-on M&A
Stable EBITA growth: Balanced organic growth, supported by selective bolt- on M&A´s in strategic segments Value drivers 2 • New capacity: expansion via new own homes 2% (net new beds adding average +2% of growth p.a. ) • Price: compensating annual cost inflation 2% • Occupancy: improve in existing c
Slide 18: Financial targets
Financial targets Adjusted EPS > 5.50 SEK 2026 (based on organic and inorganic growth, and other capital allocation measures) Financial leverage 1.5-2.5x (adj. net debt / adj. EBITDA) (Leverage can temporarily exceed 2.5x e.g., in relation to an acquisition) Earnings distribution Dividend 30% of adj
Slide 19: our Me ut
our Me ut INTO IT