Attendo Ab · OMXSTO:ATT
Attendo Ab — Q4 2022 Earnings Presentation
15 slides from Attendo Ab's earnings presentation, Feb 10, 2023
Slide 1: Q4 Report Presentation
Q4 REPORT PRESENTATION Martin Tivéus CEO / Fredrik Lagercrantz CFO 10 February 2023
Slide 2: Favourable conditions for turnaround in 2023
Q4 highlights: Favourable conditions for turnaround in 2023 • Profits pressured in Finland and Scandinavia due to high personnel costs and high inflation • Continued good organic growth • Stable customer inflow to nursing homes in Sweden and stable development in Finland • Price increases in Finland
Slide 3: Group highlights in Q4 2022
Group highlights in Q4 2022 Net Sales, growth1 Lease adjusted EBITA, SEKm Adjusted Earnings Per Share, SEK 9% (6%org.) 8 (0.2%) -0.07 Q3/22: 10% Q4/21: 10% Q3/22: 171 (4.6%) Q4/21: 65 (2.0%) Q3/22: 0.80 Q4/21: 0.21 Quality Index Leverage (Lease adj ND/Lease adj EBITDA) 89% 4.4x Q3/22: 89% Q4/21: 89%
Slide 4: Quality framework: examples of progress in 2022
Quality framework: examples of progress in 2022 CUSTOMER HEALTH & QUALITY PROCESS QUALITY EXPERIENCE OF LIFE Q4 NPS Group Quality of life Customer NPS = 36 methods: Quality Index Relative NPS 29 RAI* implemented AQ 89% in Finland (out of 100 / ASCOT** piloted in Scandinavia) Sweden -100 +100 *Reside
Slide 5: Prices Finland: local authorities around 30 percent more expensive in 2021
Prices Finland: External studies show that local authorities were already around 30 percent more expensive in 2021 – larger gap today Cost for intensive elderly care (24/7) in 2021; EUR per care day Public production Average private prices* +36% +50% +28% +36% +13% +49% +40% +29% 173 177 +31% 171 +2
Slide 6: Update price negotiations in Finland
Update price negotiations in Finland • On January 25, the parliament in Finland voted for an amendment to the staffing law - hence staffing requirement will increase from 0.60 to 0.65 care workers per resident from April 1 (instead of 0.7) • At this point, about a third of contracts have been finali
Slide 7: Low number of openings supporting occupancy
Own operations: openings of new homes Low number of openings supporting occupancy 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) Openings by quarter Attendo Scandinavia (left axis) 2,500 1,
Slide 8: Strong top-line growth but margin pressure remains
Margin and net sales development Strong top-line growth but margin pressure remains R12 Net sales, SEK Billion 14.0 14.5 15 13.6 12.9 13.3 12.2 12.3 12.3 12.3 12.2 12.3 12.6 11.5 11.7 11.9 11.0 11.2 10 7.6 7.9 6.8 7.1 7.3 6.4 6.3 6.3 6.3 6.3 6.4 6.3 6.1 6.5 6.7 6.3 6.3 5 6.1 6.2 6.3 6.5 6.6 5.6 5.8
Slide 9: Occupancy development by business area
Occupancy development by business area Occupancy in all homes1 Total Attendo Scandinavia Attendo Finland Occupancy 95 development Finland: • Shortage of personnel • On-going contract re- 90 negotiations Occupancy 85 development Sweden: 85 84 84 85 83 83 82 83 83 84 84 84 • Good demand 82 82 82 82 81
Slide 10: P&L: High organic growth but weaker operating profit
P&L: High organic growth but weaker operating profit SEKm Q4 2022 Q4 2021 Change (%) Net sales 3,789 3,338 14 Organic, % 5.7 5.4 - Acquired, % 3.1 4.5 - Currency, % 4.7 -0.9 - Lease adjusted operating profit (EBITA) 8 65 -88 Lease adjusted operating margin (EBITA), % 0.2 2.0 - IFRS16 adjustment 123
Slide 11: High growth due to more sold nursing home beds
Attendo Scandinavia Q4 2022 High growth due to more sold nursing home beds Net sales per service offering, Q4 2022 Stable customer inflow to nursing homes • Good organic growth due to strong customer inflow Individual and family care Social psychiatry 6% • Total occupancy of 85% Disabled care 14% 2%
Slide 12: High growth, but challenging staffing situation
Attendo Finland Q4 2022 High growth, but challenging staffing situation High organic growth Net sales per service offering, Q4 2022 • High organic growth due to past price increases Other 10% Disabled care 10% Continued pressure on profit Social psychiatry 11% • The result is affected by high person
Slide 13: Cash flow: Decrease in operating profit affects cash flow
Cash flow: Decrease in operating profit affects cash flow SEKm Q4 2022 Q4 2021 Operating profit (EBITA) 131 172 Change in working capital, paid tax, non cash items and depreciation 492 436 Cash flow after changes in working capital 623 608 Net investments in tangible and intangible assets -45 -48 Op
Slide 14: Summary
Summary • High organic growth driven by stable customer inflow in Scandinavia and higher prices in Finland • Profit pressured by high personnel costs and impact of high inflation • Positive outlook for a turnaround in 2023 – Positive effect from price negotiations in Finland – Uncovered cost develop
Slide 15: Thank you
Thank you