Attendo Ab · OMXSTO:ATT
Attendo Ab — Q3 2019 Earnings Presentation
14 slides from Attendo Ab's earnings presentation, Oct 24, 2019
Slide 1: Q3 report presentation
Q3 report presentation October 24th, 2019 Q3 Highlights, Martin Tiveus, CEO Financial Summary, Fredrik Lagercrantz, CFO Q&A
Slide 2: Highlights third quarter 2019: Stable performance in Scandinavia and actions to turn-around Finland ongoing
Highlights third quarter 2019: Stable performance in Scandinavia and actions to turn-around Finland ongoing • Overall stable development in Scandinavia – Stable performance in Own Care Homes – Continued positive development in Home Care – Continued challenging situation in Outsourcing • Turn-around
Slide 3: Group highlights
Group highlights Net Sales, growth1 EBITA-margin (reported)3 Leverage (adj ND/adj EBITDA) 6% 8.7% 3.3 Quality Index Total Occupancy 6.1% 81% 80% Adjusted EBITA, r12% Total # of beds in own Opened beds in own New beds under operation2 operation2 Q.I.2 construction 16 470 434 2 094 1) Excluding curren
Slide 4: Turn-around programme in Finland
Turn-around programme in Finland • Strengthened management team and organisation – Virpi Holmqvist started as new Business Areas Director of Attendo Finland on October 7 – Henna Plit started as new Finance Director for Attendo Finland on October 14 – Strengthened regional organisation – less units p
Slide 5: Quality & employees in Q3
Quality & employees in Q3 • Ambition to further strengthen Attendo's quality position • Roll out of Attendo’s food 2.0 concept • Digital solutions for improved food handling • Focus on values-work and safe work environment • Investments in recruitment processes and resources • In Finland, Attendo’s
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 16,470 15,288 14,536 14,889 +11% 12,635 13,216 9,326 12,290 12,574 12,868 8,102 8,446 10,933 11,286 11,652 7,380 7,617 7,833 6,668 7,045 7,218 9,304 9,890 6,331 6,544 6,13
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 Attendo Finland Openings by quarter Attendo Scandinavia 2,500 1,500 2,000 1,867 1,155 1,000 1,500 718 954 625 1,000 539 500 47
Slide 8: Mature units: margin and net sales development
Mature units: margin and net sales development Group reported Sharpened staffing regulations in Finland pressures margins 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
Slide 9: Occupancy development: vintage breakdown
Occupancy development: vintage breakdown 2016 and earlier Stable in mature, steadily improving in 2017-18 vintages 2017 2018 2019 Occupancy in own homes1 Mikeva Total occ. 100 95 91 90 90 88 85 85 85 82 82 81 81 79 80 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-1
Slide 10: P&L: Growth from M&A and own operations
P&L: Growth from M&A and own operations Lower profit due to higher costs and more empty beds in Finland SEKm Q3 2019 Q3 2018 Change (%) Net sales 3,013 2,802 8 Organic, % 1.6 4.1 - Acquired, % 4.6 17.3 - Currency, % 1.3 4.8 - Operating profit (EBITA) 294 375 -22 Operating margin (EBITA), % 9.8 13.4
Slide 11: Attendo Scandinavia Q3 2019
Attendo Scandinavia Q3 2019 OVERALL STABLE PERFORMANCE Net sales per service offering, Q3 2019 Individual and family care Net sales Own care homes* 6% • Acquisitions and more sold beds in own care homes Home care increased net sales 22% • Lost net sales from ended outsoursing contracts, 45% ended un
Slide 12: Attendo Finland Q3 2019
Attendo Finland Q3 2019 TURN-AROUND PROGRAM INITIATED Net sales per service offering, Q3 2019 Other Net sales 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 req
Slide 13: Cash flow: Lower free cash flow mainly due to lower profit
Cash flow: Lower free cash flow mainly due to lower profit SEKm Q3 2019 Q3 2018* Operating profit (EBITA) 294 428 Change in working capital, paid tax, non cash items and depreciation 93 88 Cash flow after changes in working capital 387 516 Net investments in tangible and intangible assets 13 -44 Ope
Slide 14: Attendo
Attendo Care your way