Slide 1: Interim report April - June, Q2, 2022
Everyone is entitled to a good life. Interim report April - June, Q2, 2022 Johanna Rastad and Andreas Westlund, 18 August 2022
Slide 2: Acquired growth and activities to improve margins
Acquired growth and activities to improve margins • High and stable demand and solid growth • Organic growth in Elderly Care (+29.2%), Norway (3.6%) and Finland (2.2%) • Slowly recovering occupancy in Individual & Family and Elderly Care • Continued staffing challenges negatively impacting both marg
Slide 3: Financial highlights Q2
Financial highlights Q2 Q1 2022 2022 Growth • Revenue: SEK 2,241m (2,058), +9% vs LY • Organic growth: 2.2% (4.2) Profitability • Operating profit: SEK 65m (107m), -39% • Operating margin: 2.9% (5.2) Cash flow & leverage • Operating cash flow: SEK 237m (251) • Net debt: SEK 4,384 (3,909), +SEK 475m
Slide 4: Quality development
Quality development • The HQI result marginally lower, mainly due to acquisitions • Positive quality developments in the quarter: • Increased number of employees to complete training through the Humana Academy • Reduced repeated deviations • Continued high activity from regulatory bodies, particular
Slide 5: Financial highlights Q2 2022
Financial highlights Q2 2022 • Performance in Q2 defined by shortage of staff and growth not yet contributing on margins • Satisfying total growth but profit below expectations • Increased personnel costs • Inflation • Cost related to opened units during the year • Market conditions created opportun
Slide 6: Operating revenue
Q2 Operating revenue +8,9% • An increase in revenues of 8.9% in Q2 • Organic growth 2.2% (4.2) in Q2 • Acquired operations accounted for SEK 140m in Q2 • Revenue growth attributable to acquisitions, Norway, and earlier opened units • EC, Norway and to some extent Finland contributed to organic growt
Slide 7: Profitability
Q2 Profitability -39,4% • Operating margin 2.9% (5.2) in Q2 • Operating profit was mainly affected by personnel supply challenges, driving personnel costs as well as inflation and cost related to opened units • Sick leave closing in on normal, although still relatively high in Finland and Elderly Ca
Slide 8: Solid performance and acquisition driving growth
Solid performance and acquisition driving growth • Solid performance continued in Q2 2022, in line with Q2 2021 • Acquisition of Assistans för dig, welcoming approx. 2000 new employees to Humana • Decrease in assistance hours partly offset by higher reimbursement • Recruitment and staffing increasin
Slide 9: Personal Assistance
Revenue +6,5% Personal Assistance • Revenue increased by 6.5% • Organic growth was -1.9% (3.2) • Higher reimbursement and fewer assistance hours due to personnel challenges 2020 2021 2022 • Assistans för dig operations contributed in June , Operating revenue, SEK m • Operating profit was SEK 34m (35
Slide 10: Recovery period and positive occupancy development
Recovery period and positive occupancy development • Recovery period after closing units in 2021 and effects of the pandemic • Occupancy improvement and positive trend in organic growth, gradually filling up newly started units • Growing in areas managing more complex clients • Opening two new units
Slide 11: Individual & Family
Lar Revenue +3,7% Individual & Family • Revenue increased by 3.7% • Acquisitions drive revenue growth • Organic growth flat y/y, recovering from Q1 2020 2021 2022 , Operating revenue, SEK m • Operating margin was 6.0% (8.7), gradually improving Profitability during the quarter • Performance negative
Slide 12: Strong organic growth, occupancy slowly improving
Strong organic growth, occupancy slowly improving • Continued growth and slight occupancy improvement • Negative contribution to operating profit due to slow ramp-up in new units, costs for launch of new contract and shortage of staff driving higher cost for temporary personnel • Procurement in Strä
Slide 13: Elderly Care
Revenue Elderly Care +29,2% • Revenue increased by 29.2% • Organic growth was 29.2% (0.4) • Five new elderly care homes under own management during 2021 2020 2021 2022 , Operating revenue, SEK m • Operating margin was -3.1% (-2.4) • Ramp-up of new elderly care homes and new Profitability contracts p
Slide 14: Challenging market conditions, focus on securing competence
Challenging market conditions, focus on securing competence Finland • Continued high sick leave affecting revenue and cost negatively • Shortage of staff on the market due to challenging regulations, staffing ratio and vaccination requirements • Positive organic growth, mainly in child welfare servi
Slide 15: Finland
Revenue +14,6% Finland • Revenue increase of 14.6% • Organic growth was 2.2% (1.0) • Organic growth is primarily driven by newly opened units in the child and youth segment 2020 2021 2022 • Acquisition of Debora Lapsiperhepalvelut within , Operating revenue, SEK m open care services Profitability •
Slide 16: Stable performance, adapting to educational requirements
Stable performance, adapting to educational requirements • Continues to perform well with organic growth in all divisions except in division Young • Adapting to new educational requirements in Young • Improving systems and tools to support our personal assistants • Strengthened administrational orga
Slide 17: Norway
Revenue +7,9% Norway • Revenue increase of 7.9% • Organic growth was 3.6% (15.7) • Increased number of clients 2020 2021 2022 , Operating revenue, SEK m • Operating profit was SEK 18m (22) Profitability • Operating margin for the quarter was 6.8% (9.3) • All segments contributing positively y/y to o
Slide 18: Financial position
Leverage, development Financial position • Interest-bearing net debt increased, year-on-year, by SEK 475m to SEK 4,384m (3,909) • Net debt increased due to acquisitions, lease liabilities related to investments in new units, and share buybacks • Leverage, interest-bearing net debt in relation to adj
Slide 19: Cash flow
Operating cash flow Cash flow • Operating cash flow in Q2 amounted to SEK 237m (251) • The lower cash flow is mainly due to decreased operating profit offset by improved working capital and lower SEK m Q2 2021 Q2 2022 investments in new units Operating profit 107 65 • Cash flow for the quarter SEK 7
Slide 20: Financial targets and development
Financial targets and development Revenue growth Profitability Capital structure 2020 2021 2022 Operating margin LTM, % Leverage, Interest-bearing net debt/ Growth, % adj EBITDA, times Financial target, operating margin, % Organic growth, % Financial target, leverage Operating profit, SEKm Financial
Slide 21: Summary
Summary • A quarter marked by strong growth and investments that with dedicated actions, over time should bear fruit in terms of improved profitability • Acquisitions of Assistans för dig, Vintergatan AB and Debora Lapsiperhepalvelut Oy • Focus going forward • Increase occupancy • Secure price incre
Slide 22: Thanks!
Thanks! Financial calendar Further information Interim report Jan-Sep, Q3 2022 10 Nov 2022 Ewelina Pettersson IR manager +46 73 074 7912, ewelina.pettersson@humana.se