Slide 1: Q3 July – September 2016
Q3 July – September 2016 18 November 2016
Slide 2: Underlying market and current trends
Underlying market and current trends Business area Market outlook per segment • New figures from the Swedish Association of Local Authorities and Regions (SKL) show that municipalities and county councils continue to increase usage of private providers (both in General market absolute numbers and as
Slide 3: Politics in Sweden – The Swedish Welfare Investigation
Politics in Sweden – The Swedish Welfare Investigation • March 5th 2015 – The Government mandates Ilmar Reepalu to conduct an investigation with the aim to present material on which proposals for a new regulatory framework for public financing of private welfare services – The main purpose of the in
Slide 4: Politics in Finland – the SOTE-reform
Politics in Finland – the SOTE-reform Key highlights “The freedom of choice model” New reform • One of the biggest reform packages ever in Finland • Aim is to transfer organization of health- and social services and other regional Background services from municipalities to the new 18 counties as of
Slide 5: Q3 and nine-month period financial highlights
Q3 and nine-month period financial highlights Key highlights Q3 • Operating revenue grew 19% to SEK 1,676m (1,404) • Organic growth in the quarter 3.3% Revenue Nine-month period • Operating revenue grew 13% to SEK 4,681m (4,134) • Organic growth in the period 2.3% Q3 • Operating profit (EBIT) of SEK
Slide 6: Q3 business and operational highlights (I/II)
Q3 business and operational highlights (I/II) Individual & Family - Personal Assistance - “Continued strong growth” “Continued challenging market conditions” • Growing with 17%, of which organic 5.5% • Previously communicated increase in the state reimbursement by 1.4% (4 SEK) has been lowered • Mor
Slide 7: Q3 business and operational highlights (II/II)
Q3 business and operational highlights (II/II) Elderly Care - Other Nordics - “Focus on organic growth” “Very strong development” • Currently two units under construction and a • Continued strong demand in Other Nordics except healthy pipeline for 2018 onwards for migration related services • Humana
Slide 8: Humana Q3 - Operating revenue
Humana Q3 - Operating revenue Operating revenue Comments • Operating revenue increased by SEK million 19% to SEK 1,676m, an 1,676 increase of SEK 272m, driven by +19% Individual & Family and Other Nordics – above our growth target 1,404 – organic growth of 3.3% • Acquisitions contributed with SEK 23
Slide 9: Humana nine-month period - Operating revenue
Humana nine-month period - Operating revenue Operating revenue Comments • Operating revenue increased by SEK million 13% to SEK 4,681m, an 4,681 increase of SEK 547m, driven by +13% Individual & Family and Other Nordics 4,134 – organic growth of 2.3% • Acquisitions contributed with SEK 478m to reven
Slide 10: Humana Q3 - Operating profit
Humana Q3 - Operating profit Operating profit (EBIT) Comments SEK million % • Operating profit increased to SEK 159m (126). Acquisitions contributed with SEK 38m. 200 15 +26% • Operating profit margin of 9.5% 159 (9.0) Negative impact from: 150 9.5% 126 9.0% – higher social security costs 10 for you
Slide 11: Humana nine-month period - Operating profit
Humana nine-month period - Operating profit Operating profit (EBIT) Comments SEK million % • Operating profit increased to 300 10 SEK 256m (234) Acquisitions 256 234 contributed with SEK 68m 250 8 200 5.7% • Operating profit margin of 5.5% 5.5% 6 150 EBIT (5.7) 4 Impact from: 100 EBIT-margin – cost
Slide 12: Individual & Family Q3
Individual & Family Q3 Operating revenue Comments SEK million • Operating revenue increased by 17% driven by 16% more clients % 553 +17 – organic growth of 5.5% 472 Q3 2015 Q3 2016 • Operating profit was in line with last year at SEK 79m (79) Operating profit • Margin decreased from 16.8% in Q3 2015
Slide 13: Personal Assistance Q3
Personal Assistance Q3 Operating revenue Comments SEK million • Operating revenue decreased by 688 2% explained by: 671 -2% – fewer clients and hours compared with last year – tougher market conditions • Operating profit decreased to SEK 43m (56), operating margin Q3 2015 Q3 2016 declined to 6.4% (8
Slide 14: Elderly Care Q3
Elderly Care Q3 Operating revenue Comments SEK million • Operating revenue increased by 1% in Q3 2016 144 +1% 145 – positive effect from opening our elderly care home in Gävle Q3 2015 Q3 2016 Operating profit • Operating profit SEK 6m (3) SEK million • Margin 4.4% (1.8) % 8 5 – Improved due to trans
Slide 15: Other Nordics Q3
Other Nordics Q3 Operating revenue Comments SEK million • Operating revenue increased 307 208% to SEK 307m (100), primarily driven by acquisition of +208% KOA and Arjessa in Finland • Organic growth at constant 100 currency of 35.7% – High occupancy as well as good development within personal Q3 201
Slide 16: Central costs/other
Central costs/other Breakdown of central costs/other Comments SEK million • Central costs/other decreased from SEK 19m in Q3 2015 to Costs Q3 2015 Q3 2016 SEK 13m in Q3 2016. Total other costs 19 13 – Q3 2015 included SEK 8m in advisory costs for Advisory costs for refinancing 8 - financing Central
Slide 17: Financial targets
Financial targets Revenue growth • Annual growth rate in the medium term of 8-10 percent, achieved through organic growth as well as bolt-on acquisitions Profitability • EBIT margin in the medium term of approximately 6 percent Capital structure • The net debt in relation to EBITDA is not to exceed
Slide 18: Q&A
Q&A
Slide 19: Appendix
Appendix
Slide 20: Consolidated income statement
Consolidated income statement Jul-‐Sep Jul-‐Sep Jan-‐Sep Jan-‐Sep Oct-‐Sep Jan-‐Dec SEK M 2016 2015 2016 2015 2015/16 2015 Net revenue 1 676 1 404 4 681 4 134 6 140 5 593 Other revenue 0 0 0 0 62 62 Opera9ng revenue 1 676 1 404 4 681 4 134 6 202 5 655 Other external costs -‐246 -‐188 -‐691
Slide 21: Key ratios
Key ratios Jul-‐Sep Jul-‐Sep Jan-‐Sep Jan-‐Sep Oct-‐Sep Jan-‐Dec 2016 2015 2016 2015 2015/16 2015 Opera@ng revenue 1 676 1 404 4 681 4 134 6 202 5 655 EBIT, % 9,5% 9,0% 5,5% 5,7% 5,4% 5,5% Interest-‐bearing net debt, SEK M 1 330 1 474 1 330 1 474 1 330 1 174 Return on capital employed, % 4,8%
Slide 22: Consolidated balance sheet
Consolidated balance sheet Sep 30 Sep 30 Dec 31 SEK M 2016 2015 2015 Assets Non-current assets Goodwill 3 073 2 550 2 584 Other intangible assets 15 9 9 Property, plant and equipment 358 328 200 Financial assets 11 3 4 Total non-current assets 3 456 2 892 2 797 Current assets Trade receivables 524 4
Slide 23: Consolidated cash flow statement
Consolidated cash flow statement Jul-‐Sep Jul-‐Sep Jan-‐Sep Jan-‐Sep Oct-‐Sep Jan-‐Dec SEK M 2016 2015 2016 2015 2015/16 2015 Profit before tax 152 45 182 99 232 149 Adjustment for: Deprecia@on and impairment 14 12 35 35 83 82 Financial items, net 6 81 74 136 102 163 Other non-‐cash items 0 0
Slide 24: Segment financials
Segment financials Opera9ng revenue by business area Jul-‐Sep Jul-‐Sep Jan-‐Sep Jan-‐Sep Oct-‐Sep Jan-‐Dec SEK M 2016 2015 % 2016 2015 % 2015/16 2015 % Individual & Family 553 472 17% 1 654 1 368 21% 2 188 1 902 15% Personal Assistance 671 688 -‐2% 1 994 2 016 -‐1% 2 667 2 689 -‐1% Elderly