Attendo Ab · OMXSTO:ATT
Attendo Ab — Q4 2019 Earnings Presentation
15 slides from Attendo Ab's earnings presentation, Feb 13, 2020
Slide 1: Q4 report presentation
Q4 report presentation February 13, 2020 Q4 Highlights, Martin Tiveus, CEO Financial Summary, Fredrik Lagercrantz, CFO Q&A
Slide 2: Highlights fourth quarter 2019: Stable performance in Scandinavia and actions to turn-around Finland ongoing
Highlights fourth 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 – Stabilized situation in outsourcing on a low level • Turn-ar
Slide 3: Group highlights in Q4
Group highlights in Q4 Net Sales, growth1 EBITA-margin (reported) Leverage (adj ND/adj EBITDA) 7% 4.6% 3.6x Quality Index Total Occupancy 6.1% 83% 80% Adjusted EBITA, r12% Total # of beds in own Opened beds in own New beds under operation2 operation2 Q.I.2 construction 16,618 479 1,980 1) Excluding
Slide 4: Turn-around program in Finland
Turn-around program in Finland • Further strengthened management team and organisation – 24 new area mangers will decrease workload for the regional directors – Newly appointed team leaders will reduce workload for local managers and assist with local operational development • Price negotiations – P
Slide 5: Quality & employees: Improved operative model with several ongoing initiatives
Quality & employees: Improved operative model with several ongoing initiatives • The launch of mobile service planning at nursing homes in Sweden completed • Strengthened central dementia competence team • Improved food concept • High focus on values work locally 5
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) 16,618 15,923 16,216 16,470 15,288 +9% 14,536 14,889 12,635 13,216 9,326 12,290 12,574 12,868 12,929 7,833 8,102 8,446 10,933 11,286 11,652 7,045 7,218 7,380 7,617 9,304 9,890 6,331 6,5
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 1,950 2,000 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 80 80 79 79 80 75 70 65 60 55 50 45 40 35 30 25 20 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17 Ja
Slide 10: P&L: Growth from more beds occupied and M&A
P&L: Growth from more beds occupied and M&A Lower profit due to higher costs and high number of openings in Finland SEKm Q4 2019 Q4 2018 Change (%) Net sales 3,054 2,818 8 Organic, % 3.6 4.5 - Acquired, % 3.2 7.2 - Currency, % 1.6 3.0 - Operating profit (EBITA) 139 176 -21 Operating margin (EBITA),
Slide 11: Attendo Scandinavia Q4 2019
Attendo Scandinavia Q4 2019 OVERALL STABLE PERFORMANCE Net sales per service offering, Q4 2019 Net sales Individual and family care • Acquisitions and more sold beds in own care homes increased 5% Own care homes* Home care net sales 22% • Lost net sales from ended outsourcing contracts, ended units
Slide 12: Attendo Finland Q4 2019
Attendo Finland Q4 2019 TURN-AROUND PROGRAM ONGOING Net sales per service offering, Q4 2019 Other Net sales Own care homes - 1% • Growth due to sales in new own homes started (Disabled care and 22% social psychiatry) 2018 and 2019 Profits • Higher cost from sharper staffing requirements and 77% acti
Slide 13: Cash flow: Higher free cash flow in spite of lower profit
Cash flow: Higher free cash flow in spite of lower profit SEKm Q4 2019 Q4 2018* Operating profit (EBITA) 139 215 Change in working capital, paid tax, non cash items and depreciation 467 296 Cash flow after changes in working capital 606 511 Net investments in tangible and intangible assets -109 -65
Slide 14: FY 2019: A year heavily impacted by situation in Finland
FY 2019: A year heavily impacted by situation in Finland • Net sales of SEK 11.9 bn (11.0), growth of 8.6% • Operating profit (EBITA) amounted to SEK 812m (1,008), margin of 6.8% (9.2) • The year was marked by the situation in Finland - higher costs from shaper requirements and many opening of new u
Slide 15: Attendo
Attendo Care your way