Slide 1: Interim report January-September and Q3 2020
Everyone is entitled to a good life. Interim report January-September and Q3 2020 Rasmus Nerman, Noora Jayasekara, 6 November 2020
Slide 2: Q3 2020: A stable quarter with good news for PA
Q3 2020: A stable quarter with good news for PA • Continuously heavy focus on managing the pandemic • Important confirmations of our quality • Humana Quality Index • Customer survey Personal Assistance • National board of Health & Welfare on elderly care homes • Humana, once again, distinguished for
Slide 3: Financial highlights in Q3
Financial highlights in Q3 Growth • Revenue: SEK 1,931m (1,928), 0% vs LY • Organic growth: 2.2% (3.2) Profitability • Operating profit: SEK 172m (176m), -3% • Adjusted operating profit: SEK 172m (172m), 0% • Operating margin: 8.9% (9.1%) Cash flow & leverage • Operating cash flow: SEK 146m (206) •
Slide 4: Strong quality results during Covid-19 pandemic
Strong quality results during Covid-19 pandemic • Continued heavy focus on routines and risk analysis • Continuously strong compliance (>95%) with basic hygiene routines, which is a key factor in combatting Covid-19 • Education and training prioritised • Humana Quality Index improved from 94 to 95,
Slide 5: Strong quarter with positive news on allowance
Strong quarter with positive news on allowance Personal Assistance • Continuously strong performance • Annual customer survey showed that satisfaction among Humana customers is increasing from already high levels • Net Promotor Score (customer loyalty measure) at +45 • Increase of the assistance all
Slide 6: Stable development in Individual & Family
Stable development in Individual & Family • The Covid-19 situation continues do dampen overall demand • Stable development during the quarter due to good operational efficiency • Weaknesses in youth segment compensated by strong performance in adult and LSS segments • Efforts to improve operations h
Slide 7: Challenges due to Covid-19 remain
Challenges due to Covid-19 remain • Focus on handling the Covid-19 situation where safety for clients and staff is priority • Elderly Care most affected of our five business areas by the pandemic – both operationally as well as financially • The ban on visitors has been challenging for clients and t
Slide 8: Underlying improvements in Finland
Underlying improvements Finland in Finland • In Finland we continue to fend off the negative effects of the pandemic whilst improving underlying operations • Our I&F segments continue to do well with an increasing focus on organic growth initiatives • Efforts to improve profitability in acquired ope
Slide 9: Strong development in Norway
Strong development in Norway • Our Norwegian operations continued to be stable with strong organic growth • Humana wins large quality tender within BPA in Norway • 6 years and 16 municipalities • Humana wins and in total four eligible providers • During the quarter and year we have also made investm
Slide 10: CFO highlights Q3 2020
CFO highlights Q3 2020 • Main objective to increase predictability and stability • A lot of work is being done with digitalisation and automation, work that will continue in coming periods • Refining our real estate portfolio also a focus area • Financial focus during the quarter has been on improvi
Slide 11: Operating revenue
Q3 Interim period Operating revenue • Third quarter in line with previous year +5% • Organic growth 2.2% (3.2) 5 849 5 554 • Currency effects reduced revenues • The Covid-19 pandemic had a negative effect on revenue; through 0% lower occupancy and through a 1 928 1 931 negative impact on hours perfo
Slide 12: Profitability
Q3 Interim period Profitability • Operating margin 8.9% (9.1) in Q3 and +24% 6.3% (5.4) in the interim period 370 • Adjusted operating profit in the quarter in 353 line with the previous year 298 294 • The pandemic has affected profit from -3% several aspects: 176 172 172 172 • Lower occupancy • Inc
Slide 13: Personal Assistance
Revenue Profitability Personal Assistance • The revenue increased by 4% +4% • Organic growth was 3.9% (1.3) 736 • More performed assistance hours, 708 despite a somewhat negative impact 9% on performed hours from the 60 57 12 52 pandemic 50 10 • A higher assistance allowance 40 8 • The operating pro
Slide 14: Individual & Family
Profitability Individual & Family Revenue • Revenue decreased by 1% -1% • Organic growth of -1.3% (-1.7) 529 522 • All in all more stable occupancy; with lower occupancy in the children and -4% adolescents segment and increased 80 14 72 70 occupancy in the adult segment 70 12 • The Covid-19 pandemic
Slide 15: Elderly Care
Revenue Profitability Elderly Care • Weaker revenue growth in the quarter +3% • The 3% increase in revenue is organic 146 150 • The new unit in Kungsängen -40% contributing 8 8 12 • Lower occupancy due to the Covid-19 7 10 pandemic 6 • Withheld contracted price indexing 5 8 5 pending the wage negoti
Slide 16: Finland
Revenue Profitability Finland • Revenue decrease of 6% -6% • Organic growth was -1.3% (9.6) 336 • The decrease is due to the exit of 318 27% unprofitable contracts 25 24 12 • The opening of new units during the year had a positive impact on 20 19 10 revenue 8 15 • Operating profit increased by 27% 6
Slide 17: Norway
Revenue Profitability Norway • Revenue increase of 3% +3% • Currency effects, a weaker 194 200 Norwegian krona, had a negative impact on the revenue 1% • Organic growth was 11.9% (2.1) 25 12 21 21 • Openings of new units and more 20 10 customers behind organic growth 8 15 • Operating profit in line
Slide 18: Central costs
Q3 Interim period Central costs • Underlying central costs stable Q3 Q3 Jan-Sep Jan-Sep SEK m 2019 2020 2019 2020 • Positive effects of IFRS 16 of SEK 15m on central costs (and Underlying central costs 18 20 68 80 operating profit) in the quarter Acquisition related costs 0 0 28 0 • Capital gain fro
Slide 19: Financial position
Financial position Leverage, development • Interest-bearing net debt decreased by SEK 305m to SEK 3,549m (3,854) • The leverage, interest-bearing net debt 8 7,1 in relation to EBITDA, decreased to 7 6,0 5,7 5,4 4.5x (6.0) 6 5,2 5 4,6 4,5 • Improved leverage is due to higher 4 3 profit and available
Slide 20: Cash flow
Cash flow Operating cash flow • Operating cash flow in Q3 amounted to SEK 146m (206). • The decrease is mostly due to an increase in working capital SEK m Q3 2019 Q3 2020 Operating profit 176 172 • Cash flow for the period amounted to SEK 30m (213) where Depreciation 90 94 • net cash flow from opera
Slide 21: Financial targets and development
Financial targets and development Revenue growth Profitability Capital structure 200 10 12 8 7,1 10 160 8 7 6,0 8 6 5,7 120 6 5,4 5,2 6 5 4,6 4,5 176 172 4,2 80 4 4 3,4 3,4 4 2,8 2,6 2,2 2,0 98 100 40 77 71 2 2 3 45 0 0 0 2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2019 2020 201
Slide 22: Summary
Summary ✓ Successful management of the Covid-19 pandemic ✓ Stable operational and financial performance ✓ Positive news for Personal Assistance ✓ Weak financial development in Elderly Care due to the pandemic but also building for the future Priorities going forward CEO ▪ Continue to handle the pand
Slide 23: Thanks!
Financial calendar Thanks! Full year report Jan-Dec and Q4 2020 11 Feb 2021 Interim report Jan-Mar 2021 7 May 2021 AGM 11 May 2021 Interim report Jan-Jun and Q2 2021 20 Aug 2021 Interim report Jan-Sep and Q3 2021 11 Nov 2021 Further information Anna Sönne, Head of IR, +46 70 601 4853 anna.sonne@huma