Slide 1: Q3 July–September 2018
Q3 July–September 2018 16 November 2018
Slide 2: Q3 financial highlights
Q3 financial highlights Revenue • Operating revenue increased 6.8% to SEK 1,677m (1,613) when excluding for the home care operations divested last year (when included operating revenue increased by 4,0%). • The organic growth in the quarter was 4.4%. Operating profit • Operating profit (EBIT) of SEK
Slide 3: Operational highlights in Q3: Individual & Family
Operational highlights in Q3 Focus on organic growth projects in Individual & Family • We continue to see positive effects on profitability from implemented operational improvement measures • Stabilisation of demand across I&F. Overall development of revenues still weak, but with better demand in so
Slide 4: Operational highlights in Q3: Personal Assistance
Operational highlights in Q3 Personal Assistance Increased confidence in the future for Personal Assistance • We continue to see a stabilisation in the market Development regarding fewer hours, due to the withdrawal of decisions by Försäkringskassan, has slowed down Number of individuals entitle
Slide 5: Operational highlights in Q3: Elderly Care
Operational highlights in Q3 High quality showcased in Elderly Care • Humana, again, receives very high quality grades from the 2018 National Board of Health and Welfare’s annual quality survey (Öppna jämförelser) Well ahead of national averages for both private and public providers Our unit in
Slide 6: Operational highlights in Q3: Other Nordics
Operational highlights in Q3 Strong momentum in Finland and Norway - and expansion into Denmark • Strong momentum with high demand for our services in the operations in Finland Focus on growth to meet current demand for Humana services • Operations in Norway are seeing good effects of the implemen
Slide 7: Humana Q3 2018 - Operating revenue
Operating revenue Humana Q3 2018 - SEK million Operating revenue 1,677 Comments 6.8% • Operating revenue grew 6.8% to SEK 1,677m excl. for the divested home 1,570 care operation. +9% • Organic increase of 4.4% explained by strong organic growth within Elderly Care (improved occupancy) and Other Nord
Slide 8: Humana 9M 2018 - Operating revenue
Operating revenue Humana 9M 2018 - SEK million Operating revenue 5,022 5.5%* 4,762 Comments • Operating revenue increased 5.5% to SEK 5,022m excl. for the now divested home care operations. +9% • Organic increase of 2.9% explained by strong organic growth within Elderly Care and Other Nordics, and s
Slide 9: Humana Q3 2018 – Adj operating profit
Adjusted operating profit Humana Q3 2018 – SEK million % Adj operating profit 200 9.0% 10,0 7.7% 151 Comments 150 +21% 125 • Adjusted operating profit was SEK 151m (125), an increase of 21%. 100 5,0 • Positive impact from revenue increase +9% and lowered costs in Norway and 50 turning from loss to p
Slide 10: Humana 9M 2018 - Adj operating profit
Adjusted operating profit Humana 9M 2018 - Adj operating profit SEK million % Comments • Adjusted operating profit was SEK 350 8 310m (250), an increase of 24%. 310 +24% 300 • Positive impact from: 250 250 +9% 6 – lowered costs in Individual & 6.2% Family and Norway 200 5.1% 4 – improvements in util
Slide 11: Individual & Family – Q3 2018
Operating revenue Individual & Family SEK million 537 538 – Q3 2018 Comments • Operating revenue of SEK 538m, in line with last year. • Organic growth of 0.4% (-5.6). • Operating profit for the quarter Q3 2017 Q3 2018 increased by 3% compared with last year to SEK 72 M (70) and operating Operating p
Slide 12: Personal Assistance – Q3 2018
Operating revenue Personal Assistance SEK million 667 0% 666 – Q3 2018 Comments • Operating revenue of SEK 666m, in line with last year. • Organic growth of -1.0% (-0.6). • Operating profit increased by 3% to SEK 51m (49) and operating margin Q3 2017 Q3 2018 was 7.6% (7.4) Operating profit (EBIT) •
Slide 13: Elderly Care – Q3 2018
Operating revenue SEK million Elderly Care – Q3 2018 112 32% 85 Comments • Operating revenue increased organically by 32% when the home care service, sold in 2017, is excluded. Including the home care service (SEK 43m) the Q3 2017* Q3 2018 revenue decreased by 12% to SEK *The divested home care serv
Slide 14: Other Nordics – Q3 2018
Operating revenue SEK million Other Nordics 361 – Q3 2018 282 Comments • Operating revenue increased 28% to SEK 361m (282). Acquisitions contributed SEK 20m to revenue in the quarter. • Organic growth of 17% (-12) for the quarter. Q3 2017 Q3 2018 • Operating profit increased to SEK 40m (26) correspo
Slide 15: Cash flow – key highlights
Cash flow – key highlights SEK million Q3 2017 Q3 2018 Comments Cash flow from operating activities 126 168 • Cash flow from operating before changes in working capital activities for the quarter was SEK Changes in working capital -122 -81 67m vs. SEK 17m last year. Cash flow from operating activiti
Slide 16: Central costs/other
Central costs/other Comments SEK million • Underlying central costs in Q3 Costs Q3 2017 Q3 2018 2018 SEK 16m vs SEK 17m in Q3 Underlying central costs 17 16 2017. Cost for acquisitions 2 1 • Underlying central costs for the 9M period was SEK 57 m vs. SEK Sale and lease back - - 54m for the 9M period
Slide 17: Q&A
Q&A
Slide 18: Appendix
Appendix
Slide 19: 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 20: Consolidated income statement
Consolidated income statement Jul-Sep Jul-Sep Jan-Sep Jan-Sep Oct-Sep Jan-Dec SEK M 2018 2017 2018 2017 2017/18 2017 Net revenue 1 677 1 614 5 010 4 926 6 627 6 542 Other revenue 0 -1 11 14 11 14 Operating revenue 1 677 1 613 5 022 4 940 6 638 6 556 Other external costs -251 -238 -779 -752 -1 043 -1
Slide 21: Consolidated balance sheet
Consolidated balance sheet 30 Sep 30 Sep 31 Dec Dec 31 SEK M 2018 2017 2017 2016 Assets Non-current assets Goodwi l l 3 166 3 089 3 104 3 089 Other i ntangi bl e a s s ets 9 13 10 13 Property, pl a nt a nd equi pment 490 394 413 405 Fi na nci a l a s s ets 15 8 8 6 Total non-current assets 3 680 3 5
Slide 22: Consolidated cash flow statement
Consolidated cash flow statement Jul-Sep Jul-Sep Jan-Sep Jan-Sep Oct-Sep Jan-Dec SEK M 2018 2017 2018 2017 2017/18 2017 Profit before tax 132 97 251 206 295 250 Adjustment for: Depreciation 18 16 49 45 64 60 Financial items, net 19 13 59 44 80 66 Cash flow from operating activities before changes in
Slide 23: Key ratios
Key ratios Jul-Sep Jul-Sep Jan-Sep Jan-Sep Oct-Sep Jan-Dec 2018 2017 2018 2017 2017/18 2017 Operating revenue 1 677 1 613 5 022 4 940 6 638 6 556 EBIT, % 9,0% 6,8% 6,2% 5,1% 5,7% 4,8% Interest-bearing net debt, SEK M 1 405 1 590 1 405 1 590 1 405 1 440 Return on capital employed, % 3,8% 2,9% 7,7% 6,
Slide 24: Segments financials
Segments financials Operating revenue by business area Jul-Sep Jul-Sep Jan-Sep Jan-Sep Oct-Sep Jan-Dec SEK M 2018 2017 % 2018 2017 % 2017/18 2017 % Individual & Family 538 537 0% 1 645 1 659 -1% 2 197 2 212 -1% Personal Assistance 666 667 0% 1 978 1 968 1% 2 631 2 621 0% Elderly Care 112 128 -12% 32