Slide 1: Q3 July – September 2017
Q3 July – September 2017 16 November 2017
Slide 2: Q3 financial highlights
Q3 financial highlights Revenue • Operating revenue declined 4% to SEK 1,614m (1,676). Divesting the home care operation has impacted revenues in the quarter negatively. • Organic decline in the quarter of 4.3% Operating profit • Operating profit (EBIT) of SEK 110m (159), incl. capital loss from sal
Slide 3: Operational highlights in Q3 (I/IV) Individual & Family
Operational highlights in Q3 (I/IV) Individual & Family - “Savings program paying off but lower market demand in certain areas” • Growth and profitability hampered by lower utilisation in children and youth area and delayed organic start-ups due to lengthy handling process at IVO (Health and Social
Slide 4: Operational highlights in Q3 (II/IV) Personal Assistance
Operational highlights in Q3 (II/IV) Personal Assistance Personal Assistance - “Enhanced visibility in a tough market” • Humana continues to gain market share in very tough market conditions • Reimbursement level proposed to increase by 1.5% per hour from January 1, 2018 (earlier 1.0%) • New collect
Slide 5: Operational highlights in Q3 (III/IV) Elderly Care
Operational highlights in Q3 (III/IV) Elderly Care – “Full focus on start-ups” • Revenue development and profitability in the quarter negatively impacted by divesture of home care operation to Attendo • Third own managed elderly care home in Åkersberga was successfully opened after the end of the qu
Slide 6: Operational highlights in Q3 (IV/IV) Other Nordics
Operational highlights Other in Q3 (IV/IV) Nordics Other Nordics - “Finland strong, Norway improving” • Focus on starting and ramping up new units in both Norway and Finland • Improvement in Norway in Q3 but challenging market conditions in certain areas • Improvement program on track and we expect
Slide 7: Humana Q3 2017 - Operating revenue
Operating revenue Humana Q3 2017 - SEK million Operating revenue 1,676 -4% 1,614 Comments • Operating revenue decreased by 4% to SEK 1,614m impacted by divesture of home care operations – organic decline of 4.3% explained by +9% lower utilisation within children & youth area in Individual & Family a
Slide 8: Humana Q3 2017 - Operating profit
Operating profit (EBIT) Humana Q3 2017 - SEK million % 200 -31% 15 Operating profit 159 150 9.5% 110 10 100 6.8% Comments 5 • Operating profit was SEK 110m (159). 50 Including capital loss from divesture of home care operation of SEK 14m. 0 0 Acquisitions contributed with SEK 6m. Q3 2016 +9% Q3 2017
Slide 9: Humana 9M 2017 – Operating revenue
Operating revenue Humana 9M 2017 – SEK million Operating revenue Comments 4,940 • Operating revenue increased by 6% to +6% SEK 4,940m driven by Other Nordics 4,681 – organic decline of 1.9% • Acquisitions contributed with SEK 589m to revenue • The revenue decline is explained by lower utilisation fo
Slide 10: Humana 9M 2017 – Operating profit
Operating profit (EBIT) % Humana 9M 2017 – SEK million 300 256 -2% 250 10 Operating profit 250 8 200 5.5 5.1 6 150 Comments 4 100 • Operating profit was SEK 250m (256 incl. 50 2 cost for IPO of SEK 40m). Including capital loss from sale of home care 0 0 operation of SEK 14m and capital gain 9M 2016
Slide 11: Individual & Family – Q3 2017
Operating revenue Individual & Family 553 SEK million -3% 537 – Q3 2017 Comments • Operating revenue decreased by 3% – organic decline of -5.6% explained by lower utilisation for children and youth care area Q3 2016 Q3 2017 • Operating profit declined compared with last year to SEK 70m (79), margin
Slide 12: Personal Assistance – Q3 2017
Operating revenue Personal Assistance SEK million 671 667 – Q3 2017 Comments • Operating revenue decreased by 1% to SEK 667m explained by: – fewer clients and hours compared with last year – tough market conditions Q3 2016 Q3 2017 • Operating profit increased to SEK 49m Operating profit (EBIT) (43),
Slide 13: Elderly Care – Q3 2017
Operating revenue Elderly Care SEK million – Q3 2017 145 -12% 128 Comments • Operating revenue decreased by 12% in Q3 2017 to SEK 128m but organic growth of 4%. The decline is due to: – sale of home care operation, SEK 43m (64) in Q3 2017 Q3 2016 Q3 2017 – positive effect from own managed elderly ca
Slide 14: Other Nordics – Q3 2017
Operating revenue Other Nordics SEK million – Q3 2017 307 -8% 282 Comments • Operating revenue declined 8% to SEK 282m (307), organic decline at constant currency of -12.0%. Acquisitions contributed with SEK 15m to revenue • Operating profit decreased to SEK 26m (44), margin 9.3% (14.2) due to: - mi
Slide 15: Central costs/other
Central costs/other SEK million Costs Q3 2016 Q3 2017 Comments Underlying central costs 13 15 • Central costs in Q3 2017 includes Capital loss home care sale - 14 SEK 14m in capital loss from divesture of home care operation Cost of long term incentive plan - 2 and SEK 2m in cost for long term Cost
Slide 16: Cash flow – key highlights
Cash flow – key highlights SEK million Q3 2016 Q3 2017 Comments Operating cash flow before changes in 173 126 • Cash flow for the quarter was SEK - working capital 31m vs. SEK 6m last year. The Changes in working capital -93 -122 change is explained by: Underline cash flow from operations 80 4 – app
Slide 17: Q&A
Q&A
Slide 18: Appendix
Appendix
Slide 19: Financial targets
Financial targets Revenue growth Profitability • Annual growth rate • EBIT margin in the in the medium term medium term of of 8-10 percent, approximately 6 achieved through percent organic growth as well as bolt-on acquisitions Capital structure Dividend policy • The net debt in • 30 percent of net
Slide 20: Consolidated income statement
Consolidated income statement Consolidated0income0statement Jul$Sep Jul$Sep Jan$Sep Jan$Sep Oct$Sep Jan$Dec SEK0M Note 2017 2016 2017 2016 2016/17 2016 Net$revenue 1$614 1$676 4$926 4$681 6$607 6$362 Other$revenue 0 0 14 0 14 0 Operating0revenue 3 10614 10676 40940 40681 60621 60362 Other$external$c
Slide 21: Consolidated balance sheet
Consolidated balance sheet 30 Sep 30 Sep 31 Dec Dec 31 SEK M 2017 2016 2016 2015 Assets Non-current assets Goodwill 3 089 3 073 3 089 2 584 Other intangible assets 13 15 13 9 Property, plant and equipment 394 358 405 200 Financial assets 8 11 6 4 Total non-current assets 3 504 3 456 3 514 2 997 Cu
Slide 22: Consolidated cash flow statement
Consolidated cash flow statement Consolidated+statement+of+cash+flows+in+summary Jul5Sep Jul5Sep Jan5Sep Jan5Sep Oct5Sep Jan5Dec SEK+M 2017 2016 2017 2016 2016/17 2016 Profit+before+tax 97 152 206 179 254 228 Adjustment+for: Depreciation+ 16 14 45 35 60 50 Financial+items,+net 14 6 44 77 69 101 Cash
Slide 23: Key ratios
Key ratios Jul -‐ Sep Jul -‐ Sep Jan-‐Sep Jan-‐Sep Oct-‐Sep Jan-‐Dec 2017 2016 2017 2016 2016/17 2016 Operating revenue 1 614 1 676 4 940 4 681 6 621 6 362 EBIT, % 6,8% 9,5% 5,1% 5,5% 4,9% 5,2% Interest-‐bearing net debt, SEK M 1 590 1 330 1 590 1 330 1 590 1 628 Return on capital employed, %
Slide 24: Segments financials
Segments financials Operating revenue by business area Jul -‐ Sep Jul -‐ Sep Jan-‐Sep Jan-‐Sep Oct-‐Sep Jan-‐Dec SEK M 2017 2016 % 2017 2016 % 2016/17 2016 % Individual & Family 537 553 -‐3% 1 659 1 654 0% 2 220 2 214 0% Personal Assistance 667 671 -‐1% 1 968 1 994 -‐1% 2 619 2 645 -‐1% El