Slide 1: Q4 October – December 2017
Q4 October – December 2017 21 February 2017
Slide 2: Q4 financial highlights
Q4 financial highlights Revenue • Operating revenue decreased 4% to SEK 1,616m (1,681). The majority of the decrease is attributable to the divesture of the home care operations • Organic decrease in the quarter of 1.7% Operating profit • Operating profit (EBIT) of SEK 66m (73) • Operating margin 4.
Slide 3: Operational highlights in Q4 (I/IV) Individual & Family
Operational highlights in Q4 (I/IV) Individual & Family - “Improvements and savings program paying off” • I&F improvement program finalized with expected cost savings, improved operational efficiency and structure • We see a clear improvement in earnings in the fourth quarter due to implemented meas
Slide 4: Operational highlights in Q4 (II/IV) Personal Assistance
Operational highlights in Q4 (II/IV) Personal Assistance Personal Assistance - “Strong performance in a challenging market” • Humana continues to gain market share in tough market conditions • Number of individuals entitled to personal assistance in the market declined with 5.1% during 2017, the low
Slide 5: Operational highlights in Q4 (III/IV) Elderly Care
Operational highlights in Q4 (III/IV) Elderly Care – “Full focus on start-ups” • Revenue development in the quarter negatively impacted by divesture of home care operation • However solid organic growth of 13% driven by newly started OwM units • Ramping up of both Åkersberga and Växjö has had a nega
Slide 6: Operational highlights in Q4 (IV/IV) Other Nordics
Operational highlights Other in Q4 (IV/IV) Nordics Other Nordics - “Finland strong, Norway weak” • Weak development in Norway and continued challenging market conditions in certain areas • Weak market development in Q4 resulting in low capacity utilisation • Costs for start-up of new units • Efforts
Slide 7: Humana Q4 2017 - Operating revenue
Operating revenue Humana Q4 2017 - SEK million Operating revenue Comments -4% 1,681 • Operating revenue decreased by 4% to SEK 1,616m. The majority of the 1,616 decrease of SEK 65m is explained by the divesture of home care operations +9% – organic decline of 1.7% explained by slightly lower utilisa
Slide 8: Humana Q4 2017 - Operating profit
Operating profit (EBIT) Humana Q4 2017 - Operating profit SEK million % Comments Operating profit was SEK 66m (73). Positive impact from: 100 15 – efficiency program in Individual & +9% Family and Personal Assistance 73 -10% 66 10 Negative impact from: – weak development in the 50 Norwegian operatio
Slide 9: Humana FY 2017 – Operating revenue
Operating revenue Humana FY 2017 – SEK million Operating revenue +3% 6,557 Comments 6,362 • Operating revenue increased by 3% to SEK 6,557m – organic decline of 1.3% • The revenue development has been hampered by lower utilisation for children and youth care within Individual & Family and weak devel
Slide 10: Humana FY 2017 – Operating profit
Operating profit (EBIT) SEK million Humana FY 2017 – -4% % Operating profit 400 10 329 316 300 8 5.2% 4.8% 6 200 Comments 4 • Operating profit was SEK 316m (329 100 2 incl. cost for IPO of SEK 40m). Including capital loss from sale of home 0 0 care operation of SEK 14m and capital 2016 2017 gain fro
Slide 11: Individual & Family – Q4 2017
Operating revenue Individual & Family SEK million – Q4 2017 560 -1% 553 Comments • Operating revenue decreased by 1% – organic decline of -2.9% explained by lower utilisation for children and youth care area • Operating profit increased by 27% Q4 2016 Q4 2017 compared with last year to SEK 44m Opera
Slide 12: Personal Assistance – Q4 2017
Operating revenue Personal Assistance SEK million 651 0% 653 – Q4 2017 Comments • Operating revenue marginally higher than same period last year at SEK 653m. • Operating profit increased to SEK 46m (34), operating margin 7.0% (5.2) Q4 2016 Q4 2017 – positive effect from operational Operating profit
Slide 13: Elderly Care – Q4 2017
Operating revenue SEK million Elderly Care – Q4 2017 147 -38% 92 Comments • Operating revenue decreased by 38% in Q4 2017 to SEK 92m but organic growth of 13.2%. The decrease is mainly explained by sale of home care operation – positive effect from own managed Q4 2016 Q4 2017 elderly care homes Oper
Slide 14: Other Nordics – Q4 2017
Operating revenue Other Nordics SEK million – Q4 2017 -1% 322 319 Comments • Operating revenue declined 1% to SEK 319m (322), organic decline at constant currency of -7.4%. • Operating profit decreased to SEK 7m (23), margin 2.2% (7.3). The weak development is explained by the Norwegian operations:
Slide 15: Cash flow – key highlights
Cash flow – key highlights SEK million Q4 2016 Q4 2017 Comments Operating cash flow before changes in 88 81 • Cash flow from operating working capital activities for the quarter was SEK Changes in working capital -278 157 210m vs. SEK -217m last year. Underline cash flow from operations -190 238 The
Slide 16: Q&A
Q&A
Slide 17: Appendix
Appendix
Slide 18: 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 19: Consolidated income statement
Consolidated income statement Oct$Dec Oct$Dec Jan$Dec Jan$Dec SEK-M Note 2017 2016 2017 2016 Net$revenue 1$616 1$681 6$542 6$362 Other$revenue 0 0 14 0 Operating-revenue 3 1-616 1-681 6-557 6-362 Other$external$costs 9264 9272 91$016 9963 Personnel$costs 91$269 91$320 95$145 94$964 Depreciation 915
Slide 20: Consolidated balance sheet
Consolidated balance sheet 31#Dec 31#Dec SEK#M Note 2017 2016 Assets Non(current,assets Goodwill 4 3)104 3)089 Other)intangible)assets 10 13 Property,)plant)and)equipment 413 405 Financial)assets 14 6 Total,non(current,assets 3#541 3#514 Current,assets Trade)receivables 489 523 Other)current)receiva
Slide 21: Consolidated cash flow statement
Consolidated cash flow statement Oct$Dec Oct$Dec Jan$Dec Jan$Dec SEK-M 2017 2016 2017 2016 Profit-before-tax 44 48 250 228 Adjustment-for: Depreciation+ 15 15 60 50 Financial+items,+net 22 25 66 101 Cash-flow-from-operating-activities-before- changes-in-working-capital 81 88 376 379 Changes+in+worki
Slide 22: Key ratios
Key ratios Oct$Dec Oct$Dec Jan$Dec Jan$Dec 2017 2016 2017 2016 Operating*revenue 1*616 1*681 6*557 6*362 EBIT,*% 4,1% 4,3% 4,8% 5,2% Interest<bearing*net*debt,*SEK*M 1*440 1*628 1*440 1*628 Return*on*capital*employed,*% 1,7% 2,0% 8,2% 8,9% Equity/assets*ratio,*% 37,3% 34,8% 37,3% 34,8% Operating*cas
Slide 23: Segments financials
Segments financials Operating*revenue*by*business*area Oct1Dec Oct1Dec Jan1Dec Jan1Dec SEK*M 2017 2016 % 2017 2016 % Individual)&)Family 553 560 21% 2)212 2)214 0% Personal)Assistance 653 651 0% 2)621 2)645 21% Elderly)Care 92 147 238% 521 580 210% Other)Nordics 319 322 21% 1)188 924 29% Other)reven
Slide 24: Central costs/other
Central costs/other SEK million Costs Q4 2016 Q4 2017 Comments Underlying central costs 15 21 • Underlying central costs in Q4 2017 Cost of long term incentive plan - 1 SEK 21m vs SEK 15m in 2016 Cost for acquisitions 1 1 • Increased central costs due to higher cost of personnel and costs Central ov