Slide 1: First Quarter 2024 Presentation
First 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 13 561 Nytida 4 081 Vardaga 4 721 Staffing and competency 2% Stendi 3 216 Altiden 1 285 Social care 24% 30% Klara 443 Social care EBITA and EBITA-margin (R12), MSEK >13 500 MSEK sales 450 municipal clients Ambea 1
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 is a constant top of mind
Care quality is a constant top of mind Further progress in care quality, our “license to operate” Selected quality KPI’s Q1 2024 Target Ambea quality index 7,58 >7.50 (Scale 1-10) Improvement index 7.61 >7.50 The winners of Ambea's Quality New digital workplace successfully (Scale 1-10) Award launch
Slide 5: Continued focus on sustainability
Continued focus on sustainability We continue to lead the care sector with initiatives across the full ESG agenda LEADERSHIP INDEX 78 Selected sustainability KPI’s Q1 2024 Target Leadership index 78 >80 Scale 1–100 (Scale 0–100) Employee feedback shows improved Employee satisfaction 73 >75 Positive
Slide 6: Organic growth
Organic growth Stable pipeline to meet future demand • Own management beds/placements in pipeline amounts to a total of 1 233 in the quarter. Own management beds/placements & pipeline • Vardaga signed a new nursing home during the quarter with 80 beds that is planned to open in 9 550 9 575 9 633 9 6
Slide 7: Revenue growth
Revenue growth Strong organic growth continues 13% 2% 10% 1% 9% 5% 8% 8% 2% 3% 6% 2% 5% 5% 2% 5% 2% 8% 7% 6% 6% 6% 6% 5% 5% 4% Q1 Q2 Q3 Q4 Q1 -1% -… Q2 -1% Q3 -1% Q4 Q1 2022 Q2 2023 Q3 Q4 2024 Organic Acquired/divested Currency effect 7
Slide 8: Highlights of Q1 2024
Highlights of Q1 2024 Continued strong profitability improvement • Net sales increased by 8 per cent, driven by organic growth of 8 per cent. • EBITA for the group increased 29 per cent, and margin improved to 8,0 (6,7) per cent. • Free cash flow increased 70 per cent due to the strong earnings and
Slide 9: Financial summary
Financial summary Benno Eliasson CFO 9
Slide 10: Net sales
Net sales Organic growth in Vardaga, Stendi and Nytida 5% 13% 10% -2% -9% Net sales growth per business area 10
Slide 11: EBITA
EBITA Strong EBITA increase driven by Vardaga and Stendi 6,7% 0,0pp 2,4pp 2,2pp 0,6pp -2,6pp 8,0% Total EBITA margin and margin development per business area 11
Slide 12: Operating cash flow
Operating cash flow Further increased cash flow and cash conversion 99,2% 99,1% 100,3% 94,4% 95,6% 94,3% 94,9% 91,8% 85,3% 743 712 580 542 545 291 500 341 356 372 342 302 344 328 327 281 421 301 322 402 240 217 236 173 61 55 50 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2022 2023 2024 Operating cash flow, excl. gro
Slide 13: Free cash flow R12 excl. IFRS16
Free cash flow R12 excl. IFRS16 High free cash flow R12 13
Slide 14: Utilization of free cash flow R12
Utilization of free cash flow R12 Free cash flow used for dividend pay-out, buyback of shares and reduced debt 14
Slide 15: Business overview
Business overview Benno Eliasson CFO 15
Slide 16: Nytida: Stable EBITA and EBITA-margin
Stable EBITA and EBITA-margin • Net sales increased by 5 per cent compared to last MSEK Q1 2024 Q1 2023 Change, % year. Net sales 1 041 991 5% • Nytida increased own management pipeline with 35 EBITA EBITA, % 125 12,0% 119 12,0% 5% 0,0pts beds and 30 placements during the quarter. Own management, %
Slide 17: Vardaga: Continued strong development
Continued strong development • Net sales increased by 13 per cent, mainly driven by MSEK Q1 2024 Q1 2023 Change, % higher occupancy, new contracts and higher prices. Net sales 1 231 1 092 13% • Contract management sales amounted to 387 (317) EBITA EBITA, % 103 8,4% 6,0% 66 56% 2,4pts MSEK, an increa
Slide 18: Stendi: Continued strong margin increase
Continued strong margin increase • Net sales increased by 10 per cent; in local MSEK Q1 2024 Q1 2023 Change, % currency net sales increased by 13 per cent due to Net sales 837 763 10% increased occupancy and higher prices. EBITA 59 37 59% EBITA, % 7,0% 4,8% 2,1pts • Stendi opened six new assisted li
Slide 19: Altiden: Improvement measures on track
Improvement measures on track • Net sales decreased by 2 per cent compared to last MSEK Q1 2024 Q1 2023 Change, % year. Net sales 313 318 -2% • Own management sales represents 70 (65) per cent of EBITA EBITA, % -2,9% -9 -11 -3,5% 0,6pts - total net sales in the quarter. Own management, % 70% 65% 5,0
Slide 20: Klara: Weaker demand affected net sales and EBITA
Weaker demand affected net sales and EBITA • Net sales decreased by 9 per cent due to weaker MSEK* Q1 2024 Q1 2023 Change, % demand for staffing services. Stable demand within Net sales 105 116 -9% mobile teams and student health services. EBITA 9 13 -31% EBITA, % 8,6% 11,2% -2,6pts • EBITA decrease
Slide 21: Concluding remarks
Concluding remarks Mark Jensen CEO 21
Slide 22: Our financial targets
Our financial targets Strong organic growth, increased profitability and reduced debt 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) 13 561 6% * 13 312 8,4% 3,3x 3,3x 8,1% 8,
Slide 23: Outlook post Q1 2024
Outlook post Q1 2024 Accelerating sustainable growth • Organic growth will continue due to high demand and planned openings during 2024. • Qualitative bolt-on M&A opportunities expected. Ongoing discussions with potential acquisition targets. • Positive underlying profitability development expected.
Slide 24: Q&A
Q&A 24
Slide 25: 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 25