Slide 1: Third Quarter 2024 Presentation
Third Quarter 2024 Presentation Mark Jensen Benno Eliasson CEO CFO
Slide 2: This is Ambea
This is Ambea Market leader in Sweden, Norway and Denmark Net sales (R12), MSEK Ambea 13 969 Nytida 4 159 Staffing and Vardaga 4 981 Social and competency elderly care 2% Stendi 3 326 9% Altiden 1 260 29% 419 Social care Klara 24% EBITA and EBITA-margin (R12), MSEK >13 900 MSEK sales Social care 450
Slide 3: Invest in Scandinavia's leading competency-based care company
Invest in Scandinavia’s leading competency- based care company • Growing need: Need for care will increase, driven by a growing and ageing population. • Market leader: In all three Scandinavian countries. • Quality and competency: Continuous investments in quality and leadership. Advantage through u
Slide 4: Care quality our primary concern
Care quality our primary concern Care quality, our “license to operate” Selected quality KPI’s Q3 2024 Target Quality index 7,50 >7,50 (Scale 1-10) Vardaga's residents remain Ambea joins the Science Based satisfied with the care they receive Targets initiative The Swedish National Board of During th
Slide 5: Sustainability, an integrated part of our strategy
Sustainability, an integrated part of our strategy We continue to lead the care sector with initiatives across the full ESG agenda Ambea one of Sweden's best A Gender-Equal Company Recruitment campaign attracted employers many qualified candidates Ambea has once again been listed on Ambea achieved i
Slide 6: Organic growth
Organic growth Openings and new capacity signed to meet future demand • Own management beds/care places in pipeline amounts to a total of 1 283 in the quarter. Own management beds/care places & pipeline • Nytida signed one new assisted living facility with a total of 20 beds. 9 991 9 956 • Nytida op
Slide 7: Acquired growth
Acquired growth New acquisitions in Nytida • During the third quarter of 2024, Nytida acquired one company with a total annual net sales of 22 MSEK. • Sorbus Vårdboende AB (1 July) Acquired annual net sales per year*, MSEK • After the quarter ended, one additional acquisition was 87 completed with a
Slide 8: Revenue growth
Revenue growth Sustained good organic growth 9,5% 7,9% 7,7% 5,7% 6,0% 5,3% 5,3% 6,3% 5,0% 7,7% 7,6% 7,2% 6,4% 5,9% 5,9% 5,3% 4,7% 4,2% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2022 Q2 2023 Q3 2024 Q4 Q3 Organic growth Acquired/divested growth Currency & calender effect 8
Slide 9: Highlights of Q3 2024
Highlights of Q3 2024 Improved profitability for the group and positive earnings in Altiden • Net sales increased by 6 per cent, driven by 7 per cent organic growth. • The group’s EBITA rose by 25 per cent, and margin improved to 13,4 (11,4) per cent. Positive earnings in Altiden. • Completed share
Slide 10: Financial summary
Financial summary Benno Eliasson CFO 10
Slide 11: Net sales
Net sales Total growth of 6 percent, driven by organic growth in Vardaga, Stendi and Nytida 5% 11% 4% -2% -11% 35 3 3 555 129 -6 - 12 51 3 355 Net sales Nytida Vardaga Stendi Altiden Klara Elim. Net sales Q3 2023 Q3 2024 Net sales growth per business area 11
Slide 12: EBITA
EBITA Continued EBITA and EBITA-margin increases driven by Vardaga, Stendi and Altiden 11,4% -0,8pp 1,9pp 3,5pp 8,4pp -2,6pp 13,4% 27 1 478 33 -4 38 383 0 EBITA Nytida Vardaga Stendi Altiden Klara Other EBITA Q3 2023 Q3 2024 Total EBITA margin and margin development per business area 12
Slide 13: Operating cash flow
Operating cash flow Stable operating cash flow and cash conversion 99,1% 100,3% 100,2% 95,6% 94,3% 94,9% 95,6% 91,8% 85,3% 743 605 580 542 545 527 500 341 356 372 353 302 344 328 327 356 301 322 402 240 217 236 252 173 171 55 50 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2022 2023 2024 Operating cash flow, excl. gr
Slide 14: Free cash flow R12 excl. IFRS16
Free cash flow R12 excl. IFRS16 High free cash flow generation R12 1 256 1 315 1 178 -1 393 - 11 - 67 - 155 - 112 776 - 57 ITA ns 6 6 sh x S x tio S1 S1 ca pE IFR Ta WC hf low EB ia IFR R n Ca l. ΔN s rec . IF No exc ca De p ex he r st e A Ot re Fre ITD Inte EB 14
Slide 15: Utilization of free cash flow R12
Utilization of free cash flow R12 Free cash flow used for dividend pay-out, acquisitions, buyback of shares and reduced debt 776 - 130 - 90 36 161 - 431 Free cash flow Dividend Acquisitions Share buyback FX & other Change in net debt 15
Slide 16: Business overview
Business overview Benno Eliasson CFO 16
Slide 17: Nytida: Further bolt-on acquisitions
Further bolt-on acquisitions • Net sales increased by 5 per cent. MSEK Q3 2024 Q3 2023 Change, % • Own management sales represent 80 (80) per cent of Net sales 1 056 1 005 5% EBITA 168 168 0% total net sales in the quarter. Contract management EBITA, % 15,9 16,7 -0,8 pts sales increased by 4 per cen
Slide 18: Vardaga: Continued earnings growth
Continued earnings growth • Net sales increased by 11 per cent, driven by higher MSEK Q3 2024 Q3 2023 Change, % occupancy in both new and established facilities. Net sales 1 288 1 159 11% • Own management sales represents 68 (69) per EBITA EBITA, % 161 12,5% 123 10,6% 31% 1,9pts cent of total net sa
Slide 19: Stendi: Strong earnings improvement
Strong earnings improvement • Net sales increased by 4 per cent; due to a better MSEK Q3 2024 Q3 2023 Change, % service and price mix. In local currency net sales Net sales 841 806 4% increased by 11 per cent. EBITA 121 88 38% EBITA, % 14,4% 10,9% 3,5pts • Focus on occupancy and optimization of serv
Slide 20: Altiden: Positive earnings
Positive earnings • Net sales decreased by 2 per cent. In local MSEK Q3 2024 Q3 2023 Change, % currency net sales increased by 1 per cent. Net sales 320 326 -2% • The increase in local currency is driven by occupancy EBITA 25 -2 - improvements within elderly care. EBITA, % 7,8% -0,6% 8,4pts Own mana
Slide 21: Klara: Continued weak demand
Continued weak demand • Net sales decreased by 11 per cent due to a general MSEK* Q3 2024 Q3 2023 Change, % weak demand for staffing services. Net sales 94 106 -11% • EBITA decreased by 29 per cent and amounted to 10 EBITA EBITA, % 10,6% 10 14 13,2% -29% -2,6pts (14) MSEK. • EBITA-margin at 10,6 (13
Slide 22: Concluding remarks
Concluding remarks Mark Jensen CEO 22
Slide 23: Our financial targets
Our financial targets Continued good organic growth and increased profitability close to target. Leverage below target Growth Profitability Leverage FINANCIAL TARGET: FINANCIAL TARGET: FINANCIAL TARGET: <3.25X NET DEBT / ADJ. 8-10% ANNUAL GROWTH 9,5% ADJ. EBITA MARGIN EBITDA (EXCL. IFRS 16) 13 969 4
Slide 24: Outlook post Q3 2024
Outlook post Q3 2024 Higher future demand provides good growth opportunities • Continued organic growth expected due to higher demand and increased occupancy. • Planned openings of new units in Nytida and Stendi during the remaining part of 2024. • Ongoing discussions with potential acquisition targ
Slide 25: Q&A
Q&A 25
Slide 26: We make the world a better place, one person at a time
We make the world a better place, one person at a time ambea.com 26