Lna Sante Sa · EURONEXT:LNA
Lna Sante Sa — H1 2016 Earnings Presentation
42 slides from Lna Sante Sa's earnings presentation, September 2016
Slide 1: Financial presentation
Financial presentation September 2016
Slide 2: Results for the first half of 2016 and future prospects
Results for the first half of 2016 and future prospects September 2016
Slide 3: Contents
Contents 1. The Noble Age Group 2. A global and innovative player 3. Results for the first half of the year 4. Future prospects
Slide 4: LNA, providing care and taking care
LNA, PROVIDING CARE AND TAKING CARE Major player as at June 30, 2016 in the care of 28% weakened individuals SSR 68 61% of turnover 39% of turnover Authorized from Long-Term from Medium-Term establishments Clinics for follow-up and re- EHPAD and MRS 5 000 adaptation care (SSR), psychiatry and hospit
Slide 5: A family SME/mid-tier company with a long-term vision
A family SME/mid-tier company with a long-term vision ► Families that partnered 25 years ago in support of an entrepreneur with an innovative project ► Individual shareholders who are managers and have jobs working every day within the Group ► 40 managers/executives (NOBILISE), among the shareholder
Slide 6: A solid business model
A solid business model A high-visibility sector Solvent demand • Increasing health-care needs (rise in chronic illnesses) • EHPAD / SSR: multiple funders • Aging population • Solid financial capacity (assets + revenue) of seniors • Restructuring of services offered Clear competitive advantages A suc
Slide 7: Contents
Contents 1. The Noble Age Group 2. A global and innovative player 3. Results for the first half of the year 4. Future prospects
Slide 8: A global and innovative player
A global and innovative player… A mature group A more fine-tuned and adapted offer An approach of positive treatment and personalized service inseparable from the group’s values A social network for residents and families A common and shared identity server LNA Santé works with the Académie du Servi
Slide 9: 1st half of 2016 bed inventory
1st half of 2016 EHPAD / MRB* SSR/PSY 70% 30% est. 6 847 rest. bed beds s Established beds Beds undergoing Established beds Beds undergoing 1 024 restructuring 3 692 restructuring 655 1 121 HAD Established beds Beds undergoing restructuring 75 280 Significant numbers, with strong growth potential *
Slide 10: LNA Santé brand embodying the Group's development
1st half of 2016 LNA SANTÉ, a brand that fully embodies the Group’s development in response to healthcare and societal issues. ► A new dimension, presented to the public authorities (ministries and regional healthcare agencies). ► A diversified offer throughout the territory and highly medicalized f
Slide 11: Innovation serving healthcare: Famileo social network
1st half of 2016 Innovation serving healthcare. ► EHPAD launch of a secure social network adapted for seniors, in partnership with the Famileo app. Family LNA residents (Sends messages) (Distribution of gazette) Preserve, strengthen family ties 11 2. A global and innovative player
Slide 12: Innovation in care: shared identity server
1st half of 2016 Innovation serving the course of care and treatment. ► A new common and shared identity server. Decentralized identity information service Common host server for identity monitoring Secure, harmonize and facilitate the sharing of information during the 12 course of care and treatmen
Slide 13: Opening of a 1st Healthcare Center
1st half of 2016 Opening of a 1st Healthcare Center. ► A structure for medical consultations that provides a range of salaried practitioners: ► dentists, general practitioners (sector I), specialists, etc. ► auxiliary health workers (registered nurses, physios, midwives) ► A shared back office ► tec
Slide 14: Innovation in customized service
1st half of 2016 Innovation in customized service: an LNA Santé commitment. ► Rollout of a services repository and hotel practices. ► Undertaken as a partnership between LNA Formation and the “Académie du service.” ► Teams formed in order to improve our service offers and segment our Comfort/Eleganc
Slide 15: Contents
CONTENTS 1. The Noble Age Group 2. A global and innovative player 3. Results of the first half of the year 4. Future prospects
Slide 16: The 1st half of the year in figures
The 1st half of the year in figures Growth in activity throughout our business A optimized and flexible lines financial structure Lever* < 2.5 Turnover* €193.6M +11.3% Solid organic growth Improved results and margins +6.1% EBITDA* +24% Growth underway with 2,500 beds to become established beds *fro
Slide 17: Status of real-estate sales
Status of real-estate sales ► Activity of €27M compared with €49M in HY1 2015 ► Operating margin and program follow-up under control ► Preparations for about 15 deliveries during the period from 2016 through 2019 ► Real-estate loss controlled in the interest of Operations In millions of € 6/30/2015
Slide 18: Overview of Operations
Overview of Operations Strong improvement in current operating performance In millions of € *Restated figures pursuant to retrospective application of IFRIC 21 +31.3% **Maintenance investments 193,6 173,9 147,5 +44.3% 21,8 +55.0% 17,6 16,7 15,1 13,6 10,8 11.3% 10.1% Turn. 8.6% 4,9 4,5 10.2% Turn. 7.
Slide 19: Turnover from Operations
Turnover from Operations Steady growth for all business lines Turnover HY1 2016 HY1 2015 Total Breakdown Organic Variation of organic % % growth By activity In M€ In M€ growth Turn. Turn. Long-Term France 105.1 54.3% 93.0 53.5% 13.0% 8.7% 4.7% Long-Term Belgium 13.8 7.1% 13.3 7.7% 3.9% 3.9% 0.3% Med
Slide 20: Analysis of EBITDA from Operations
Analysis of EBITDA from Operations From the turnover to the EBITDA from Operations, dynamic flows were generated Variation In millions of euros 6/30/2016 6/30/2015 (%) Turnover 193.6 173.9 +11.3% External purchases and expenses (62.2) (59.4) +4.7% Personnel expenses (104.3) (92.5) +12.8% Taxes and d
Slide 21: Operations: balanced growth of results
Operations: balanced growth of results From EBITDA to Net income, solid performances In millions of euros HY1 2016 HY1 2015 Variation (%) +x% Turnover 193.6 173.9 +11.3% EBITDAR 48.8 42.8 +14.1% EBITDA 21.8 17.6 +23.8% Current operating income 16.7 13.6 +23.0% Operating income 16.5 13.0 +27.2% Resta
Slide 22: Spotlight on established facilities
Spotlight on “established facilities” Established facilities Other facilities Inventory 6/30/2016 6/30/2015 6/30/2016 6/30/2015 Number of facilities / Total 46/66 42/65 20/66 23/65 Number of beds 4 791 4 287 2 056 2 098 Turnover from Operations 137.4 124.3 56.2 49.4 EBITDAR / Turnover 27.9% 27.3% 13
Slide 23: Effectively managed financial structure
Effectively managed financial structure A flexible financial structure Drop in cost of debt Lever 4,5% Authorized 5.25 4,0% ceilings 4.50* 3,5% 3.0% 3,0% 2,5% 2,2% 2,0% 2.48 1,5% Operating debt hedged at 98% at a fixed rate 1,2% 1,0% 0,5% 2011 2012 2013 2014 2015 30/06/2016 Expl. Immo. Global 0.61 1
Slide 24: Financing strategy
Financing strategy RCF of €149.4M at 5 years (extended by 1 year: 07/20 to 07/21)Average outstanding balance HY1 2016: €79M ► Goal: replace illiquid bilateral credit facilities and act as backup to the commercial-paper program Integration ► Financed assets: authorizations to operate while in the res
Slide 25: Contents
CONTENTS 1. The Noble Age Group 2. A global and innovative player 3. The first half of 2016 in figures 4. Future prospects
Slide 26: Future prospects
Future prospects Performances combined with an ever-stronger presence. Controlled growth spurts. Increased visibility on markets with high growth potential. Capacity for development remains intact in an increasingly open environment 26 4. Future prospects
Slide 27: Towards a stronger presence
Towards a stronger presence 2006 2016 2020 1 544 beds 6 847 beds 128 beds / 1 SSR 1 674 beds / 13 SSR 10 000 beds 1 Healthcare Center 1 416 beds / 16 4 818 beds / 48 EHPAD/MRB EHPAD/MRB 7 500 partners 355 spots / 5 HAD 1 000 partners 5 000 partners 27 3. Résultats du 1er semestre
Slide 28: Controlled growth spurts
Controlled growth spurts Transformation of HY1 2016 existing inventory of “established facilities” excluding new developments 2016 2017 2018 2019 2020 95% 93% 89% 6 800 beds 6 600 beds 80% 6 200 beds 70% 5 500 beds Established 4 791 beds inventory +42%* AAGR: +/- 10% * % of “established” beds (no. o
Slide 29: Controlled growth spurts: established facilities
Controlled growth spurts Established 2016/06 Other facilities 2016/06 Diff. EBITDA / Turnover 12.8% 3.0% + 10 pt Established 27.5 Nb lits 27,1 4 791 22,0 4 293 % EBITDA / CA 16,3 16,4 3 675 13,4 3 421 3 191 68% 70% Cash flows 2 290 3 064 75% 69% 2 790 8,1 81% 79% 14.1% 78% 13.4% 13.2% 12.8% % establ
Slide 30: Increased visibility on markets with high growth potential
Increased visibility on markets with high growth potential Medicalized retirement home, Retirement home for the elderly (MRPA), Rest and care home (MRS) A “known” healthcare environment. Medical and/or geriatric activity An evolving and innovative offer. Unifying skills and allure. Since, 1 252 beds
Slide 31: EHPAD: a growing presence to be strengthened
Increased visibility on markets with high growth potential EHPAD: a growing presence to be strengthened. Associative EHPAD 27% Aging and increasing obsolescence of facilities. Public EHPAD [VALUE] Towards a reconfiguration of the services offered. Commercial private EHPAD 20% Number of beds / sp
Slide 32: SSR: anticipation of changes in healthcare needs
Increased visibility on markets with high growth potential SSR: anticipation in line with the changes in healthcare needs. Associative SSR 31% Development of out-patient care (day hospitals). Public Financing reform focused on relevance, SSR Commercial [VALUE] efficiency and effectiveness of int
Slide 33: HAD: a pioneering approach
Increased visibility on markets with high growth potential HAD: a “pioneering” approach. Associative HAD 59% Objective: double the activity in 4-5 years from the Ministry. Commercial Public private HAD HAD 13% [VALUE] Number of beds / spots: 12 387 Number of facilities: 302 3rd-ranked national HAD
Slide 34: 2016: annual objectives confirmed
2016: annual objectives confirmed Objectives Achieved 2016 HY1 2016 Turnover from Operations €385M €193.6M i.e., +9% +11.3% Organic growth of 4% 6.1% EBITDA margin for established 12.8% facilities of 12 % Leverage < 3.5 2.48 A high reserve of 2 500 beds close to transitioning into “establish
Slide 35: Thank you for your time
Thank you for your time
Slide 36: Annexes
ANNEXES
Slide 37: Analysis of EBITDA – Operations
Analysis of EBITDA – Operations Medium- Long-term Long-term HY1 2016, in M€ Operations term France Belgium France EBITDA 21.8 12.6 0.7 6.3 Margin 11.3% 12.0% 5.1% 8.5% Variation in margin 2016 - 2015 +113 bp +125 bp +126 bp -132 bp No. of beds in operation as at 30/16/16 6 847 4 263 555 2 029 Establ
Slide 38: A view of sites synonymous of efficiency
A view of sites synonymous of efficiency Evolution of the average inventory Engaged 103 145 160 118 2020 variation 6% 4% 24% 11% 09/2016 97 139 129 106 EHPAD MRB SSR All sectors Average Sector < 80 < 80 < 70 A major choice 38 Annexes
Slide 39: Glossary
Glossary ARS Net financial debt Agence Régionale de Santé – Regional Financial debt less cash and cash equivalents Healthcare Agency Net financial debt from operations CRAM Represents gross financial debt from Operations Caisse Régionale d’Assurance Maladie – less cash and cash equivalents a
Slide 40: Glossary
Glossary EBITDA Facilities being restructured or opened Earnings before interest, taxes, Facilities taken on or opened in the past year depreciation and amortization or so Renovation and/or expansion work underway EBITDAR Implementation of the Group’s standards Earnings before interest, ta
Slide 41: Glossary
Glossary GMP PMP Groupe iso-ressource Moyen Pondéré Pathos Moyen Pondéré (evaluation of (evaluation of dependency) technical care required) HAD Hospital-at-home PMR Personne à Mobilité Réduite – Person with reduced mobility Financial leverage (Net Debt Oper / EBITDA Oper) PUI measures the
Slide 42: Glossary
Glossary ROCE – Operations Tarif Soin Global - General-Care Rate Return On Capital Employed or return For EHPADs, this is the cost covered by the on capital invested, measured based EHPAD’s budget for the fees of outside on operating income (before or after independent medical professionals: gen