Ambea Ab · OMXSTO:AMBEA
Ambea Ab — Q2 2024 Earnings Presentation
26 slides from Ambea Ab's earnings presentation, Aug 16, 2024
Slide 1: Second Quarter 2024 Presentation
Second 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 13 769 Nytida 4 109 Vardaga 4 852 Staffing and competency 2% Stendi 3 291 Altiden 1 266 Social care 24% 29% 431 Klara Social care EBITA and EBITA-margin (R12), MSEK >13 700 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 our primary concern
Care quality our primary concern Care quality, our “license to operate” Selected quality KPI’s Q2 2024 Target Quality index 7,72 >7,50 (Scale 1-10) Record willingness to recommend Self-assessment – one of our tools Internal control 1,86 >1,85 us as an employer to ensure high quality operations (Scal
Slide 5: Sustainability, an integrated part of our strategy
Sustainability, an integrated part of our strategy We continue to lead the care sector with initiatives across the full ESG agenda European Diversity Month and Pride Great commitment to the joy of Continued support for Ukraine movement We have had an extra focus on diversity Ambea supports and finan
Slide 6: Organic growth
Organic growth Growing pipeline to meet future demand • Own management beds/care places in pipeline amounts to a total of 1 272 in the quarter. Own management beds/care places & pipeline • Vardaga opened two new nursing homes with a total of 160 new beds and signed two new nursing homes with 9 956 2
Slide 7: Acquired growth
Acquired growth New acquisitions in 2024 • In 2022 acquired Ambea five companies with total annual net sales of 263 MSEK. Acquired annual net sales per year*, MSEK • No acquisitions were made in 2023. • Nytida acquired two companies during the second quarter 263 2024 with total annual net sales of 6
Slide 8: Revenue growth
Revenue growth Good organic growth continues 10,2% 9,5% 7,9% 7,7% 5,6% 5,3% 5,1% 6,3% 4,9% 7,5% 7,6% 6,0% 6,4% 5,9% 5,3% 5,7% 4,2% 4,6% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2022 Q2 2023 Q3 2024 Q4 Organic Acquired/divested Currency effect 8
Slide 9: Highlights of Q2 2024
Highlights of Q2 2024 Strong earnings and increased free cash flow leads to financial flexibility • Net sales increased by 6 per cent, driven by organic growth. • EBITA for the group increased 42 per cent, and margin improved to 7,7 (5,8) per cent. • Free cash flow increased 24 per cent and amounts
Slide 10: Financial summary
Financial summary Benno Eliasson CFO 10
Slide 11: Net sales
Net sales Organic growth in Vardaga, Stendi and Nytida 3% 12% 10% -5% -10% et sales yti a ar a a ten i lti en lara li et sales Net sales growth per business area 11
Slide 12: EBITA
EBITA Strong EBITA increase driven by Vardaga and Stendi 5,8% -1,3pp 2,3pp 4,8pp 1,3pp -6,4pp 7,7% yti a ar a a ten i lti en lara t er Total EBITA margin and margin development per business area 12
Slide 13: Operating cash flow
Operating cash flow Increased operating cash flow and high cash conversion 99,2% 99,1% 100,3% 100,2% 95,6% 94,3% 94,9% 91,8% 85,3% 743 712 605 580 542 545 291 500 341 356 372 344 353 302 328 327 421 301 322 402 240 217 236 252 173 55 50 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2022 2023 2024 Operating cash flow,
Slide 14: Free cash flow R12 excl. IFRS16
Free cash flow R12 excl. IFRS16 High free cash flow generation R12 n s s a C tio ca p lo cia on Ca cl s p re r e ca e e t e re st re e nte 14
Slide 15: Utilization of free cash flow R12
Utilization of free cash flow R12 Free cash flow used for dividend pay-out, acquisitions, buyback of shares and reduced debt ree cas lo i i en cquisitions are uy ac ot er C an e in net e t 15
Slide 16: Business overview
Business overview Benno Eliasson CFO 16
Slide 17: Nytida: Bolt-on acquisitions for future growth
Bolt-on acquisitions for future growth • Net sales increased by 3 per cent. MSEK Q2 2024 Q2 2023 Change, % • Nytida increased the own management pipeline during Net sales 1 044 1 017 3% EBITA 124 134 -7% the quarter. EBITA, % 11,9 13,2 -1,3pts • Own management sales represent 81 (81) per cent of Own
Slide 18: Vardaga: Strong earnings
Strong earnings • Net sales increased by 12 per cent, mainly driven by MSEK Q2 2024 Q2 2023 Change, % higher occupancy, new contracts and higher prices. Net sales 1 262 1 131 12% • Vardaga opened two new nursing homes with 160 EBITA EBITA, % 105 8,3% 68 6,0% 54% 2,3pts beds during the quarter. Two n
Slide 19: Stendi: The positive trend continues
The positive trend continues • Net sales increased by 10 per cent; due to a stable and MSEK Q2 2024 Q2 2023 Change, % high occupancy and better price mix. In local Net sales 840 765 10% currency net sales increased by 9 per cent. EBITA 61 19 221% • Stendi opened two new assisted living facilities wi
Slide 20: Altiden: Year-on-year earnings improvement
Year-on-year earnings improvement • Net sales decreased by 5 per cent. MSEK Q2 2024 Q2 2023 Change, % • Altiden opened one new assisted living facility with a Net sales 311 329 -5% EBITA -13 -18 - total of five beds. EBITA, % -4,2% -5,5% 1,3pts • Own management sales represents 71 (67) per cent of O
Slide 21: Klara: Weak market for staffing services
Weak market for staffing services • Net sales decreased by 10 per cent due to a general MSEK* Q2 2024 Q2 2023 Change, % weak demand for staffing services. Net sales 104 116 -10% • EBITA decreased by 62 per cent and amounted to 5 EBITA EBITA, % 4,8% 5 13 11,2% -62% -6,4pts (13) MSEK. • EBITA-margin a
Slide 22: Concluding remarks
Concluding remarks Mark Jensen CEO 22
Slide 23: Our financial targets
Our financial targets Good organic growth, increased profitability and leverage well below target 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) 13 769 8,9% 6% * 13 312 8,4%
Slide 24: Outlook post Q2 2024
Outlook post Q2 2024 Expecting the good trends to continue • Steady organic growth expected due to higher demand and increased occupancy. • Planned openings of new units in Nytida and Stendi during the remaining part of 2024. • Further qualitative bolt-on acquisitions are expected. Ongoing discussio
Slide 25: Q&A
Q&A 25
Slide 26: 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 26