Attendo Ab · OMXSTO:ATT
Attendo Ab — Q2 2019 Earnings Presentation
15 slides from Attendo Ab's earnings presentation, Jul 19, 2019
Slide 1: Q2 report presentation
Q2 report presentation 19 July 2019 Q2 Highlights, Martin Tiveus, CEO Financial Summary, Fredrik Lagercrantz, CFO Q&A
Slide 2: Highlights second quarter 2019: Challenging situation in Finland
Highlights second quarter 2019: Challenging situation in Finland • Growth in own operations and by acquisitions. Loss of sales from outsourcing • Very weak profitability in Finland, pressured by costs for increased staffing and low sales growth from new units • Several actions to improve situation i
Slide 3: Group highlights
Group highlights Net Sales, growth1 EBITA-margin (reported) Leverage (adj ND/adj EBITDA) 8% 4.0% 3.3 Quality Index Total Occupancy 6.1% 84% 79% Adjusted EBITA, r12% Total # of beds in own Opened beds in own New beds under operation2 operation2 Q.I.2 construction 16,216 625 527 1) Excluding currency
Slide 4: Actions to restore trust and profitability in Finland
Actions to restore trust and profitability in Finland • Strengthened management team in Finland with new business area head Virpi Holmqvist – Virpi Holmqvist assigned new Business Areas Director of Attendo Finland • Actions for increased occupancy – Sharply reduced number of new establishments – Rec
Slide 5: Quality & employees in Q2
Quality & employees in Q2 • Ambition to further strengthen Attendo's quality position • Updated quality index • Strengthened support functions in Finland • A new self-control has been launched • Attendo received attention for successful work on animal therapy at nursing homes in the Oslo area • Atte
Slide 6: Beds in operation and under construction: Beds under construction in decline in Finland
Beds in operation and under construction: Beds under construction in decline in Finland No. of beds in operation1) 15,923 16,216 14,889 15,288 14,536 +12% 12,635 13,216 9,326 8,102 8,446 7,380 7,617 7,833 6,668 7,045 7,218 6,331 6,544 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2015 2016 2
Slide 7: Own operations growth pace: Continued high opening pace
Own operations growth pace: Continued high opening pace No. of opened beds in own operation1) , by quarter and rolling 12 months 2,000 3,000 Openings R12 Openings by quarter 2,500 1,500 2,000 1,155 1,752 1,000 1,500 718 625 1,000 539 500 473 404 396 412 336 319 291 500 227 212 201 192 122 136 60 0 0
Slide 8: Mature units: margin and net sales development
Mature units: margin and net sales development Group reported Mature* R12 adjusted EBITA margin development % 12 11.4% 11.3% 11.2% 11.1% 10.4% 10.3% 10.6% 10.7% 10.6% 10.6% 9.8% 10.0% 10.1% 9.7% 10 11.1% 10.8% 10.1% 10.1% 10.3% 10.5% 8.4% 9.4% 9.6% 9.9% 8 8.8% 7.8% 7.5% 6 6.5% 6.1% 4 5.2% 2 0 Q4 201
Slide 9: Occupancy development: vintage breakdown
Occupancy development: vintage breakdown 2016 and earlier 2017 2018 2019 Occupancy in own homes1 Mikeva Total occ. 100 95 91 90 90 88 85 85 85 82 82 81 81 79 79 80 75 70 65 60 55 50 45 40 35 30 25 20 okt-16 jan-17 apr-17 jul-17 okt-17 jan-18 apr-18 jul-18 okt-18 jan-19 apr-19 jul-19 1) Own nursing h
Slide 10: P&L: Growth from M&A and own operations
P&L: Growth from M&A and own operations Profitability hurt by higher costs and more empty beds SEKm Q2 2019 Q2 2018 Change (%) Net sales 2,990 2,743 9 Organic, % 1.4 2.9 - Acquired, % 6.2 18.8 - Currency, % 1.4 3.6 - Operating profit (EBITA) 121 199 -39 Operating margin (EBITA), % 4.0 7.3 - EBIT 86
Slide 11: New GAAP – IFRS 16 to be applied from 2019
New GAAP – IFRS 16 to be applied from 2019 Summary Balance sheet with effect from IFRS 16 Jun 30, 2019 Jun 30, 2018 IFRS 16 Excl. IFRS IFRS 16 Excl. IFRS SEKm Reported Adjustment 16-effect Reported Adjustment 16-effect Total Assets 20,065 -8,137 11,928 20,456 -6,974 13,482 Equity 5,804 461 6,265 5,1
Slide 12: Attendo Scandinavia Q2 2019
Attendo Scandinavia Q2 2019 STABLE IN OWN OPERATIONS BUT CONTINUED Net sales per service offering, Q2 2019 DROP IN OUTSOURCING Individual and family care 6% Own care homes* Top-line: Home care • Acquisitions and more sold beds in own homes 22% increased net sales 45% • Lost net sales from ended outs
Slide 13: Attendo Finland Q2 2019
Attendo Finland Q2 2019 SHARP DECLINE IN PROFITS Net sales per service offering, Q2 2019 Other Top line Own care homes - 2% • Growth due to sales in new own homes started (Disabled care and social psychiatry) 22% 2018 and 2019 as well as acquisitions Profits 76% • Higher cost from staffing requireme
Slide 14: Cash flow: Free cash flow down, mainly due to lower profit
Cash flow: Free cash flow down, mainly due to lower profit SEKm Q2 2019 Q2 2018* Operating profit (EBITA) 121 243 Change in working capital, paid tax, non cash items and depreciation 310 358 Cash flow after changes in working capital 431 601 Net investments in tangible and intangible assets -82 -67
Slide 15: Attendo
Attendo Care your way