Humana Inc. · NYSE:HUM
Humana — Q4 2023 Earnings Presentation
16 slides from Humana's earnings presentation, Feb 8, 2024
Slide 1: Interim Report Q4 2023
Everyone is entitled to a good life. Interim Report Q4 2023 February 8, 2024
Slide 2: Strong delivery from the Group in 2023
Strong delivery from the Group in 2023 Strong Group delivery Transitioning Positive impact Municipalities full year 2023 Personal Assistance from specialisation holding back strategy in Finland placements Streamlining the Keeping up the Clear progress of Swedish pace with the social outcome organisa
Slide 3: Growth development and Adj EBIT contribution Q4
Growth development and Adj EBIT contribution Q4 Performance Organic Growth & Adj. EBIT Q4 5,4% 5,4% 4,2% 4,2% 3,0% 3,0% 8,8% 8,8% -2,1% -2,1% - Interim Report Q4 2023 - 3
Slide 4: Strong Group performance for FY 2023
Strong Group performance for FY 2023 Key Takeaways Adj EBIT & Adj EBIT Margin 2023 5,4% • Organic growth excluding Personal assistance of 10,0% 4,2% • FY Adjusted operating profit increase +9% • Adjusted operating profit excluding Personal assistance increased 63% 3,0% • Price increases and occupanc
Slide 5: Individual & Family
Individual & Family Low occupancy offset by price increases Performance Key Takeaways • Organic growth and operating profit weaker due to decline in occupancy • Higher personnel costs partly compensated by price adjustments • Demand increased towards the end of the quarter • Five new LSS-units opene
Slide 6: Personal Assistance
Personal Assistance Transformation ongoing Performance Key Takeaways • Large transformation work ongoing • Net client outflow • Negative sales development of -20%, negative organic contribution of -20% • EBIT of 1.5% in Q4 • Increased staff costs due to new collective salary agreement • Adjustments
Slide 7: Elderly Care
Elderly Care Improvements in profitability Performance Key Takeaways • Organic growth of 6% • Profitability • Price and occupancy increases • Start-up costs for Täby • Accelerated change activities, including but not limited to; • Increased specialization in some units, • Increasing local support; a
Slide 8: Finland
Finland Positive impact from specialization strategy Performance Key Takeaways • Strong demand and high organic growth of 14% • Improved profitability • Price adjustments • Higher occupancy levels in Child and youth and Housing services for adult segments • Partly offset by increases in staff costs
Slide 9: Norway
Norway Strong organic growth and improved profitability Performance Key Takeaways • Continued good demand for our services with record high organic growth reaching 16 % • Higher share of clients with complex demands • Increase in clients within personal assistance • Profitability • Positively affect
Slide 10: Financial targets and development
Financial targets and development Organic Growth Profitability Capital Structure x x x x x x x G T T T x - Interim Report Q4 2023 - 10
Slide 11: Operating Cash Flow
Operating Cash Flow Strong cash collection in the quarter - Interim Report Q4 2023 - 11
Slide 12: Quality Management
Quality Management HQI trend remains positive despite challenges Own Controls Quality Management System Whistleblowing Quality Results Increased HQI in the quarter Internal Control Research & Development External Review - Interim Report Q4 2023 - 12
Slide 13: Social impact
Social impact Driving the future of welfare • H ’ care remains • Continued disclosure of social outcome measurements from Child and youth segments in Sweden and Norway – now also within Personal Assistance • HQI increases to 75 (74) • Increase in satisfaction among employees - Interim Report Q4 2023
Slide 14: Invest in the future of care in the Nordics
Invest in the future of care in the Nordics Low tied-up capital provides conditions for strong cash flow Competitive advantages are achieved through a unique contribution to the progress of the care sector A diversified portfolio Attractive Higher margins are possible creates a new level of stabilit
Slide 15: Summary
Summary Focus going forward A quarter with positive signals, bridging the profitability gap YoY and taking a major step forward in quality competition - Interim Report Q4 2023 - 15
Slide 16: Thanks!
Thanks! Financial Calendar Further Information Ewelina Pettersson Interim report Jan-Mar, Q1 2024 25 Apr 2024 Interim report Jan-Jun, Q2 2024 19 Jul 2024 IR manager +46 73 074 7912 ewelina.pettersson@humana.se - Interim Report Q4 2023 - 16