Lna Sante Sa · EURONEXT:LNA
Lna Sante Sa — H1 2017 Earnings Presentation
45 slides from Lna Sante Sa's earnings presentation, September 2017
Slide 1: Financial presentation
Financial presentation Half-year results – September 2017
Slide 2: Results for the first half of 2017 and outlook
Results for the first half of 2017 and outlook September 2017
Slide 3: Contents
Contents 1. Le Noble Age Groupe becomes LNA SANTÉ 2. Moving toward a new strategic plan 3. 2017 half-year results and economic outlook
Slide 4: Le Noble Age Groupe becomes LNA SANTÉ
Le Noble Age Groupe becomes LNA SANTÉ 2016: creation of the LNA SANTÉ brand ▶ A name that reflects the group’s scope of activity ▶ A strong, representative brand that speaks to everyone ▶ Emblem of a strategic commitment to development Natural evolution for a mature business model 4
Slide 5: LNA SANTÉ
LNA SANTÉ 2017: communications campaign underway ► Deployment of name on sites and media ► Approval of the Group’s name change by the fourth-quarter General Shareholders’ Meeting A new dimension, a larger footprint 5
Slide 6: LNA Santé, caring and taking care
LNA SANTE, CARING AND TAKING CARE Major player 28% as at 30 June 2017 in the care of weakened individuals SSR 67 39% of turnover authorized establishments from Medium-Term 61% of turnover 6 000 from Long-Term Clinics for follow-up and re- adaptation care (SSR), partners EHPAD and MRS psychiatry and
Slide 7: Inventory in the process of transformation
Inventory in the process of transformation as at 30 June 2017 EHPAD / MRB* 78% 22% SSR / PSY est. rest. 1 516 beds 7 009 5 493 beds beds 4 796 lits Established beds Beds undergoing Established beds Beds undergoing 1 024 restructuring 4 394 restructuring 678 498 HAD Established beds Beds undergoing *
Slide 8: A family SME/mid-tier company with a long-term vision
A family SME/mid-tier company with a long-term vision ► Partnering families and individual shareholders who are managers and have jobs working every day within the Group Nobinvest Nobel 10.3 Mérieux Développement 2,1 4.4 Nobilise 4.1 43.3 Floating capital Longstanding 35,8 shareholders As % of votin
Slide 9: Expanded and engaged management
Expanded and engaged management From left to right: Christine Lioret, Flavie Lorre, Michel Ballereau, Damien Billard, Robert Dardanne, Alexandre Tremblin, Maud Roux, Philippe Quelennec, Sophie Breton, Patricia Rosiod, Jérôme Fournier, Jean-Paul Siret, Philippe De Verdalle, Pascal Marchandon, Antony
Slide 10: Contents
Contents 1. Le Noble Age Groupe becomes LNA SANTÉ 2. Moving toward a new strategic plan 3. 2017 half-year results and economic outlook
Slide 11: Review of strategic plan (Grow Together 2013 – 2017)
Review of strategic plan (Grow Together 2013 – 2017) ▶ Reminder of goals and multi-pronged approach PLATFORM 1 PLATFORM 2 PLATFORM 3 PLATFORM 4 PLATFORM 5 Improve Design and deploy Involve employees Develop the group’s Innovate and performance by our service offers and strengthen skills presence in
Slide 12: Review of strategic plan (Grow Together 2013 – 2017)
Review of strategic plan (Grow Together 2013 – 2017) PLATFORM 1 Improve performance by implementing corporate plan Turnover from operations Number of established beds Current operating income 2013 2017* 2013 2017 2013 2017* goal: 360 goal: 35 252.6 €M 407.5 €M 3 421 5 493 beds 20.4 €M 43.6 €M beds +
Slide 13: Review of strategic plan (Grow Together 2013 – 2017)
Review of strategic plan (Grow Together 2013 – 2017) PLATFORM 3 Involve employees and strengthen skills Nobilise Training school 4 074 81 trainees representing managers/executives, party to the shareholders’ 70 680 agreement hours of training 13 from 2013 to 2016
Slide 14: Review of strategic plan (Grow Together 2013 – 2017)
Review of strategic plan (Grow Together 2013 – 2017) PLATFORM 4 Develop the group’s presence in its existing territories 2013 2017 Medicalized retirement home (EHPAD) Rest home for the elderly (MRPA), Nursing home (MRS) Follow-up and re-adaptation care (SSR) Hospital-at-home (HAD) Psychiatric clinic
Slide 15: Review of strategic plan (Grow Together 2013 - 2017)
Review of strategic plan (Grow Together 2013 - 2017) PLATFORM 5 Innovate and promote the group’s actions LNA Santé 17 EHPAD a strong brand, Equipped with visible, accessible to the telemedicine systems to general public, liaise with hospitals unifying and meaningful 15
Slide 16: Grow Together – in short
Grow Together – in short A strategy aligning both our Human resources is at the core organization and our projects of the corporate plan and strong development of LNA Training A corporate plan that continues to be implemented despite the change in scope A unique, clear and visible brand Rapid growth
Slide 17: Moving toward a new strategic plan
Moving toward a new strategic plan ► Schedule REVIEW PROSPECTIVE DIAGNOSIS PROJECTION PRESENTATION March April-September October-December 2018 Grow Together Strategic Synthesis and Strategic vision Validation/prioritiz Internal/external Review diagnosis of completion of 2022 ation of strategic deplo
Slide 18: Contents
Contents 1. Le Noble Age Groupe becomes LNA SANTÉ 2. Toward a new strategic plan 3. 2017 half-year results and economic outlook
Slide 19: The first half of 2017 in figures
The first half of 2017 in figures €203.7M +5.0% 12.3% Leverage* < 1.4 Turnover* + 5.2% Solid organic EBITDA margin for Growth in activity growth established throughout our facilities* An optimized and business lines flexible financial structure Growth underway with 1,500 beds to become established b
Slide 20: HY1 2017: Overview of LNA Santé (Operations + Real estate)
HY1 2017: Overview of LNA Santé (Operations + Real estate) +9.9% ► Solid performances and steady growth 30 June 2016 242.2 30 June 2017 220.5 In millions of € +14.2% +21.3% +13.7% 27,9 24,5 21,8 11.5 19,9 +27.4% %T 18,0 17,5 11.1% 9.0% 8.2% T T T 8.2% 10,3 T 8.0% T -17.4% 8,1 4.3% 3.7% T T -4,0 -3,3
Slide 21: HY1 2017: status of real-estate sales
HY1 2017: status of real-estate sales ► Real-estate activity of €38.6M compared with €26.9M in HY1 2016 ► Sales of furnished professional rentals continue to be buoyant via 10 active programs ► Operating income and monitoring of programs under control ► Optimized financial expenses ► A limited resul
Slide 22: HY1 2017: Overview of Operations
HY1 2017: Overview of Operations ▶ Strong improvement in operating margin over 2 years to 10% of turnover In millions of € 203.7 +17.1% 193.6 +37.5% +49.3% 24.2 21.8 20.3 173.9 17.6 16.7 13.6 11.3% 11.9% T 4,7 4,6 T 10.0% 10.1% 8.6% T T 7.8% T 4,4 T 2.4% 2.3% 2.5% T T T 06/2015 06/2016 06/2017 06/20
Slide 23: Turnover from Operations
Turnover from Operations ▶ Activity growth for all business lines Turnover HY1 2017 HY1 2016 Total Organic Breakdown of Variation growth organic growth By activity In M€ %T In M€ %T Long-Term France 110.6 54% 105.1 54% +5.2% +5.2% +2.9% Long-Term Belgium 13.5 7% 13.8 7% -2.5% +3.4% +0.2% Medium-Term
Slide 24: Analysis of EBITDA from Operations
Analysis of EBITDA from Operations Long-Term Long-Term Medium-Term HY1 2017 (in M€) Operations Holding France Belgium France EBITDA 24.2 1.3 14.9 0.7 7.2 EBITDA margin 11.9% N/S 13.5% 5.1% 9.1% Variation in margin 2017 - 2016 + 61 bp N/S + 153 bp - + 64 bp No. of beds in operation as at 30 June 17 7
Slide 25: HY1 2017: a win-win model
HY1 2017: a win-win model Established facilities Other facilities Inventory 30 June 2017 30 June 2016 30 June 2017 30 June 2016 Number of facilities / Total 52/67 46/66 15/67 20/66 Number of beds 5 493 4 791 1 516 2 056 Turnover from Operations 159.2 137.4 44.1 56.2 EBITDAR / Turnover 27.7% 27.9% 14
Slide 26: HY1 2017: analysis of EBITDA from Operations
HY1 2017: analysis of EBITDA from Operations ▶ From Turnover to EBITDA from Operations In millions of euros 30 June 2017 30 June 2016 Turnover 203.7 193.6 External purchases and expenses -66.0 -62.2 - rent -28.5 -27.0 Personnel expenses -107.9 -104.3 Taxes and duties -7.3 -6.9 Other income and expen
Slide 27: Operations: harmonious growth of indicators
Operations: harmonious growth of indicators In millions of euros HY1 2017 HY1 2016 Variation (%) EBITDA 24.2 21.8 +10.9% Current operating income 20.3 16.7 +21.3% Operating income 18.9 16.5 +14.7% Financial income -2.2 -2.8 -22.7% Pre-tax income 16.8 13.7 +22.4% Income tax expense -6.3 -5.4 +18.5% C
Slide 28: An optimized financial structure
An optimized financial structure Drop in cost of debt Very flexible financial structure 4,5% Leverage Authorized 4,0% ceilings 4.50 3,5% 2.9% 3,0% 2,5% €129M 2,0% 2.0% 1,5% 1.40 1,0% €183M 0.7% 0,5% 2011 2012 2013 2014 2015 2016 0.31 1.25 Gearing Expl. Immo. Global ► An investment capacity that serv
Slide 29: Quantitative and qualitative goals confirmed
Quantitative and qualitative goals confirmed ► Organic growth of 4% ► EBITDA for established facilities of 12% of turnover ► Operating leverage under control < 2.5 ► 1 500 beds being prepared to become established beds ► And, looking to 2021, an inventory of 10 500 beds offering stratified and speci
Slide 30: Thank you for your time
Thank you for your time
Slide 31: Annexes
Annexes
Slide 32: Moving toward a stronger presence
Moving toward a stronger presence 2006 HY1 2017 2021 1 544 beds 7 009 beds 128 beds / 1 SSR 1 702 beds / 12 SSR/PSY 10 500 beds 2 Healthcare Centers 1 416 beds / 16 4 892 beds / 48 EHPAD/MRB EHPAD/MRB > 8 000 partners 415 spots / 7 HAD 1 000 partners 6 000 partners 32
Slide 33: Scheduled growth
Scheduled growth Transformation of existing inventory to “established beds,” excluding new developments 2016 2017 2018 2019 2020 2021 100% 94% 89% 7 300 beds 85% 6 900 beds 78% 6 500 beds 69% 6 100 beds 5 493 beds 4 796 beds Established inventory *% of “established” beds +52%* 2016 - 2021 (no. of es
Slide 34: Solid and continued performance of mature inventory
Solid and continued performance of mature inventory 5 493 Established beds 4 796 4 293 Nb lits 78% 3 675 3 421 3 191 3 064 69% % en croisière 2 790 68% du parc exploité 71% 64% 69% 76% 74% 32 Cash flow 27,1 27,5 29,1 22 16,3 16,4 13,4 13.4% 14.1% 13.2% 13.1% > 12% % EBITDA / CA 12.2% 11.7% 11.3% 201
Slide 35: Solid past performance
Solid past performance Consolidated turnover Turnover & EBITDA margin: Operations In millions of euros In millions of euros 11,7% 11,5% 11,0% + 86% 10,5% 10,5% 412 394 354 475 482 425 302 356 253 324 259 + 63% 2012 2013 2014 2015 2016 2017 E 2013 2014 2015 2016 2017 E Net financial debt from Operati
Slide 36: A view of sites synonymous of efficiency
A view of sites synonymous of efficiency Evolution of the average inventory Engaged 103 145 172 120 2022 variation 4% 4% 19% 8% 09/2017 99 139 144 111 variation 16% 31% 24% 19% 04/2013 85 106 116 93 EHPAD MRB SSR All sectors Average sector < 80 < 80 < 70 36 A major choice Annexes
Slide 37: Optimized financial structure as at 30 June 17
Optimized financial structure as at 30 June 17 300 Debt structure and maturity Consolidated net debt Gross debt 348.6 255 Exploitation Immobilier Levier 6,3 250 225 207 NEU CP 120 5,3 (0.3 year) 200 144 146 Net debt 207.0 4,3 150 139 RCF 55 (4.0 years) 3,3 100 Redeemable 3.0x 57.3 (6.0 years) 50 78
Slide 38: Operations + Real estate balance sheet
Operations + Real estate balance sheet 30 JUNE 2017 31 DECEMBER 2016 Goodwill Goodwill 87,1 87,1 Shareholders’ Shareholders’ 171,5 equity 163,7 equity Intangible assets 17,8 Provisions 17,9 Provisions 218,0 Intangible assets 39,1 Net deferred taxes 219,5 39,9 Net deferred taxes 28,1 WCR (negative) 2
Slide 39: Simplified cash-flow statement and cash
Simplified cash-flow statement and cash HY1 2017 HY1 2017 HY1 2017 In millions of euros Oper. RE Total Cash at start of period 98.1 4.4 102.6 OPERATING ACTIVITIES 20.5 4.8 25.2 Restated cash flow from operating activities 24.1 1.6 25.6 Variation in the working capital requirement including payment o
Slide 40: Composition of management (as at September 2017)
Composition of management (as at September 2017) BOARD MEMBERS Jean-Paul SIRET Robert DARDANNE Chairman and CEO Chairman of the strategic committee Member of the strategic committee Member of the audit committee Member of the remuneration and appointments committee Willy SIRET Managing D
Slide 41: Composition of management (as at September 2017)
Composition of management (as at September 2017) NON-VOTING BOARD MEMBERS SIPAREX – Alexandre TREMBLIN Member of the strategic committee SODERO GESTION – Philippe QUELENNEC Member of the strategic committee UNEXO – Antony LEMARCHAND Member of the strategic committee 41 Annexes
Slide 42: Glossary
Glossary ARS Net financial debt Agence Régionale de Santé – Regional Healthcare Agency Financial debt less cash and cash equivalents CRAM Net financial debt from Operations Caisse Régionale d’Assurance Maladie – Represents gross financial debt from Operations less regional social-security of
Slide 43: Glossary
Glossary EBITDA Facilities being restructured or opened Earnings before interest, taxes, Facilities taken on or opened in the past year or depreciation and amortization so Renovation and/or expansion work underway EBITDAR Implementation of the Group’s standards Earnings before interest, ta
Slide 44: Glossary
Glossary GMP MRPA Groupe iso-ressource Moyen Pondéré Retirement home for the elderly (evaluation of dependency) ORNANE HAD Convertible bonds with repayment option in Hospital-at-home cash and/or new shares and/or existing shares Financial leverage PMP (Net Debt Oper / EBITDA Oper) measures
Slide 45: Glossary
Glossary RFP SSIAD Rentabilité des fonds propres – Services de Soins Infirmiers A Domicile – Home nursing care Profitability of equity, measured as net income/equity. It is equal to economic SSR profitability plus leverage. Soins de Suite et Réadaptation – Follow-up and re-adaptation care ROCE