Slide 1: Interim report Q2, April-June 2019
Everyone is entitled to a good life. Interim report Q2, April-June 2019 Rasmus Nerman, Ulf Bonnevier, 16 August 2019
Slide 2: Financial highlights Q2
Financial highlights Q2 Revenue and growth • Operating revenue increased 13% to SEK 1,918m (1,696) • The organic growth was 2.5% (3.4) Operating profit • Operating profit decreased by 42% to SEK 45m (78). Excluding the effects of IFRS 16 and acquisition related costs operating profit decreased 12% t
Slide 3: Operational highlights Q2
Operational highlights Q2 Acquisitions • Acquisition of Finnish care company Coronaria Hoiva Oy completed in April • Acquisition of assistance company Assistans på Gotland AB Building for organic growth • Four new contracts for elderly housing units under own management, two during Q2 and two after
Slide 4: Improvement in Individual & Family
Operational highlights Q2 2019 – Individual & Family Improvement in Individual & Family • After two quarters with lower and somewhat changed demand, the development improved in the second quarter • Although stabilised we still experience a weaker demand in the children and adolescents segment • An i
Slide 5: Personal Assistance: Stable performance and high customer satisfaction
Operational highlights Q2 2019 - Personal Assistance Stable performance and Personal high customer satisfaction Assistance • Acquisition of assistance company Assistans på Gotland AB, with annual revenues of approx. SEK 56m and approx. 115 employees • Stable revenues and stable profitability • Very
Slide 6: Elderly Care: Focus on growth - four new OwM contracts
Operational highlights Q2 2019 - Elderly Care Focus on growth - four new OwM contracts • Good market demand with high occupancy in all units under own management • Ramp up of new unit in Staffanstorp quickly reaching a high occupancy • Two new agreements on housing units under own management in Falk
Slide 7: Other Nordics: Strong development in Norway
Operational highlights Q2 2019 – Other Nordics Strong development in Norway – focus on improvement in Finland • Strong performance and organic growth in Norway • Acquisition of Coronaria Hoiva, with approx. SEK 560m in revenues and 1,100 employees, completed in April making Humana a complete care pr
Slide 8: Quality development continuously in focus
Humana Quality Index, HQI 100 92 94 94 89 80 60 40 20 0 2017 2019 Q1 2018 2019 Q2 Quality development Guarding the children’s …and the disabled’s Launch of Socialenkanalen continuously in focus perspective in annual survey perspective since 2009 • Launch of a competence hub • Humana Quality Index •
Slide 9: Operating revenue
Financial summary Q2 2019 Operating revenue 13% • The revenue growth was primarily acquisition driven. Acquired operations contributed SEK 1 918 187m to revenues in the quarter, of which SEK 1 696 Q2, 2018 148m relates to revenues from Coronaria Hoiva Q2, 2019 in Finland • Organic growth was 2.5% (3
Slide 10: Organic growth
Financial summary Q2 2019 Organic growth (%) 4,8 5 4,4 4 3,4 • The slower organic growth is due to weak 3 2,5 demand in the Individual & Family business 2,3 2 1,5 area, especially in the segment children and 1 0,4 adolescents 0 -0,4 -1 -1,7 -2 -2,4 -2,6 -2,9 -3 -3,6 -4 -4,3 -5 -5,6 -6 -7,0 -7 Q3 Q4
Slide 11: Profitability
Financial summary Q2 2019 -42% -55% -12% Profitability 78 78 74 Q2 2018 • Operating profit margin was 2.3% (4.6) and 65 Q2 2019 3.4% (4.4) when excluding the effects of IFRS 16 and acquisition related costs 45 35 • The effect of IFRS 16 amounted to SEK 10m (-), due to lower rental costs of SEK 74m a
Slide 12: Profitability – 6 months
Financial summary Q2 2019 -23% -34% -12% Profitability – 6 months 159 159 155 6 mo. 2018 137 • The effects of IFRS 16 was SEK 17m (-) 122 6 mo. 2019 105 • Acquisition expenses and revenues amounted to SEK -28m (4), largely related to the acquisition of Coronaria Hoiva. Integration costs for Coronari
Slide 13: Individual & Family
Financial summary Q2 2019 -4% Individual & Family 555 535 Operating revenue, SEK m • The revenue decrease is due to lower demand for solutions for children and adolescents • Demand improved, helped by more focus on sales activities, but still remained weak with negative organic growth -3.6% (-2.4) Q
Slide 14: Personal Assistance
Financial summary Q2 2019 4% Personal Assistance 659 685 Operating revenue, SEK m • Acquisitions account for most of the increase in revenues • The organic growth of -0.1 % (1.0) is due to lower number of performed assistance hours • Operating profit increased by 2 % to SEK 26m Q2 2018 Q2 2019 (25).
Slide 15: Elderly Care
Financial summary Q2 2019 31% 142 Elderly Care Operating revenue, SEK m 108 • Good occupancy in our own managed housing units and two new (in Q4) tendered elderly housing units contributing • The new unit under own management in Staffanstorp, which opened in March, Q2 2018 Q2 2019 contributing to re
Slide 16: Other Nordics
Financial summary Q2 2019 54% 556 Other Nordics Operating revenue, SEK m 362 • The acquisition of Coronaria Hoiva contributed SEK 148m to revenues • Organic growth still strong at 8.1% (11.4). The opening of new units and more customers contributes in both Finland and Norway Q2 2018 Q2 2019 • Operat
Slide 17: Central costs
Costs, SEK M Q1 2019 Q1 2018 Underlying central costs Financial summary Q2 2019 23 Central costs 18 Acquisition related costs 2 - Effects of IFRS 16 -7 Central costs, SEK m Q2 2019 Q2 2018 2019 2018 - • Underlying central costs was up SEK 4m. The increase is Central overhead costs Underlying central
Slide 18: Cash flow
SEK M Q1 2019 Q1 2018 Financial summary Q2 2019 Cash flow from operating activities before changes in working capital 144 97 Changes in working capital Cash flow -50 -114 Cash flow from operating activities 95 Q2 2019 -17 Q2 2019 Q2 2018 excl IFRS 16 • Stable cash flow and normal Financial items, ne
Slide 19: Financial position
Financial summary Q2 2019 Net debt/EBITDA Financial position 8 7,1 7 Leverage • Net debt increased to SEK 3,882m Leverage excl IFRS 16 (1,417) in Q2 6 5,7 • With the IFRS 16 effects excluded 5 4,8 net debt increased to 1,969m 4,2 (1,417) 4 3,8 3,8 3,4 • Acquisition of Coronaria Hoiva 3,2 3,2 3 3,0 i
Slide 20: Sale and lease back-transaction in July
Sale and lease back- transaction in July • 37 commercial properties in Finland, Sweden and Norway sold to Samhällsbyggnadsbolaget i Norden in July • Value of the property portfolio SEK 468m • Deposit of EUR 20m received in June, prior to the sale and leaseback transaction • The average contractual d
Slide 21: Thank you!
Thank you! For further information, please contact: Ulf Bonnevier, CFO and Vice President, +46 70-164 73 17, ulf.Bonnevier@humana.se Anna Sönne, Head of Investor Relations +46 70-601 48 53, anna.sonne@humana.se
Slide 22: Appendix
Humana Appendix
Slide 23: Market leading positions in three countries
Market leading positions in three countries Clear focus on full responsibility Revenue split 2019, Q2 Outsourcing 7% Individual and family 1 2 2 Personal assistance 1 2 Elderly care 93% Full responsibility and customer choice Operations in four segments Critical actor in the Nordic welfare R
Slide 24: Consolidated income statement
Consolidated income statement Apr-Jun Apr-Jun Jan-Jun Jan-Jun Jul-Jun Jan-Dec SEK m Note 2019 2018 2019 2018 2018/19 2018 Net revenue 1,918 1,685 3,626 3,333 7,003 6,714 Other revenue 0 11 0 11 0 11 Operating revenue 3 1,918 1,696 3,626 3,344 7,003 6,725 Other external costs 8 -253 -265 -469 -528 -9
Slide 25: Income statement excluding effects of IFRS 16
Income statement excluding effects of IFRS 16 Apr- IFRS 16 Excl Apr- IFRS 16 Excl Jun effect IFRS 16 Jun Jan-Jun effect IFRS 16 Jan-Jun Apr-Jun Apr-Jun Jan-Jun Jan-Jun SEK m 2019 2019 2019 2018 2019 2019 2019 2018 Operating revenue 1,918 - 1,918 1,696 3,626 - 3,626 3,344 Other external costs -253 74
Slide 26: Consolidated balance sheet
Consolidated balance sheet 26
Slide 27: Consolidated cash flow statement
Consolidated cash flow statement Apr-Jun Apr-Jun Jan-Jun Jan-Jun Jul-Jun Jan-Dec SEK m Note 2019 2018 2019 2018 2018/19 2018 Profit before tax 8 5 61 61 119 259 317 Adjustment for: Depreciation 8 84 16 152 31 190 70 Financial items, net 8 40 17 61 40 95 74 Other non-cash items 1 0 0 0 0 0 Cash flow
Slide 28: Cash flow excluding effects of IFRS 16
Cash flow excluding effects of IFRS 16 Apr- IFRS 16 Excl Apr- IFRS 16 Excl IFRS Jun effect IFRS 16 Jun Jan-Jun effect 16 Jan-Jun Apr-Jun Apr-Jun Jan-Jun Jan-Jun SEK m 2019 2019 2019 2018 2019 2019 2019 2018 Profit before tax 5 8 12 61 61 14 75 119 Adjustment for: Depreciation 84 -63 20 16 152 -114 3
Slide 29: Key ratios
Key ratios Apr-Jun Apr-Jun Jan-Jun Jan-Jun Jul-Jun Jan-Dec 2019 2018 2019 2018 2018/19 2018 Operating revenue 1 918 1 696 3 626 3 344 7 003 6 725 EBIT, % 2,3% 4,6% 3,4% 4,8% 5,1% 5,8% Interest-bearing net debt, SEK M 3 882 1 417 3 882 1 417 3 882 1 378 Return on capital employed, % 0,7% 2,0% 1,9% 4,
Slide 30: Key ratios, cont'd
Key ratios, cont’d Apr-Jun Apr-Jun Jan-Jun Jan-Jun Jul-Jun Jan-Dec 2019 2018 2019 2018 2018/19 2018 Average number full-time employees Individual & Family 2 225 2 381 2 237 2 415 2 326 2 396 Average number full-time employees Personal Assistance 5 063 5 024 5 048 5 085 5 106 5 068 Average number ful
Slide 31: Segments financials
Segments financials Operating revenue by business area Apr-Jun Apr-Jun Jan-Jun Jan-Jun Jul-Jun Jan-Dec SEK M 2019 2018 % 2019 2018 % 2018/19 2018 % Individual & Family 535 555 -4% 1 047 1 106 -5% 2 126 2 188 -3% Personal Assistance 685 659 4% 1 369 1 312 4% 2 724 2 668 2% Elderly Care 142 108 31% 27
Slide 32: Segments financials, cont'd
Segments financials, cont’d Operating profit per business area Apr-Jun Apr-Jun Jan-Jun Jan-Jun Jul-Jun Jan-Dec SEK M 2019 2018 % 2019 2018 % 2018/19 2018 % Individual & Family 41 40 2% 69 87 -21% 177 196 -9% Personal Assistance 26 25 2% 65 60 8% 156 151 3% Elderly Care 0 1 -61% 4 0 n/a 13 9 49% Othe
Slide 33: Financial targets
Financial targets* • Revenue growth 8-10% Annual growth rate in the medium term of 8-10%, achieved through organic growth as well as bolt-on acquisitions • Profitability 6% EBIT margin in the medium term of approximately 6% • Capital structure 3x The net debt in relation to EBITDA is not to exceed 3
Slide 34: Financial calendar
Financial calendar Interim report Jul-Sep 2019 8 Nov 2019 Interim report Oct-Dec 2019 13 Feb 2020 Interim report Jan-Mar 2020 7 May 2020 AGM 2020 7 May 2020 Interim report Apr-Jun 2020 20 Aug 2020 34