Fourth Quarter 2016 Presentation. 15 February, 2017

Transcription

1 Fourth Quarter 2016 Presentation 15 February, 2017 Henrik Borelius, CEO Tomas Björksiöö, CFO

2 2 Financial summary of Q4: Continued stable development Net sales SEK 2,647m (2,564), adjusted growth 4% Operating profit (EBITA) of SEK 241m (215) Operating margin (EBITA) of 9.1% (8.4) Operating cash flow of SEK 404m (324) High number of beds under construction: 1,935 Proposed dividends: 1.22 (0.54)

3 Business highlights: Stable growth in own operations Highlights by contract model Net sales by contract model Own operations Stable growth development of net sales, +11% 8 new own homes opened, 210 beds Construction of 11 new units started, 420 beds Increased number of beds under construction: 1,935 Outsourcing operations Net sales decreased slightly compared to previous year Contracts won with estimated annual sales of SEK 100m, lost contract volumes of SEK 70m YTD, won contracts exceed lost contracts SEKm Q Q Chg (%) Own operations 1,656 1, Outsourcing Staffing (183*) -22 (11*) SEKm Staffing operations Net sales increased adjusted for deconsolidation of subsidiary* TT deconsolidation Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q Own operations Outsourcing Staffing Attendo * Adjusted for subsidiary Terveyden Tuottajat deconsolidation, 31 December

4 Own operations: Increased number of beds under construction No. of beds under construction 1) New own units Attendo Koskipuisto hoivakoti, Jämsä Finland Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q No. of beds in operation 2) Attendo Kaisla, Sysmä Finland Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q Attendo Onnentäyttymys, Pornainen Finland 1) Own nursing homes (CoP) and own care homes (care for people with disabilities and social psychiatry). 2) Own nursing homes (CoP) and own care homes (care for people with disabilities, social psychiatry and individuals and families). 4

5 5 Market highlights: Continued strong demand for new nursing homes, SOTE reform in Finland move forward Market highlights Counties in SOTE reform Sweden Good demand for own operations solutions Tendered outsourcing contract volumes continued to increase slightly In November 2016, the Swedish government presented an investigation on how to restrict freedom of choice in schools, healthcare and care - The consultation process is ongoing and the investigation has been met with harsh criticism Finland Strong demand for own operations solutions Low activity in outsourcing market Staffing stable but challenging SOTE reform move forward - Freedom of choice model in health care - The SOTE counties need to corporatize their services - Service vouchers will be more important in social care 12

6 6 Strong margin development SEKm Q Q Change (%) Net sales 2,647 2, Organic Acquired Currency Operating profit (EBITA) Operating margin (EBITA ) EBIT Financial net Income tax Profit for the period Diluted earnings per share, SEK ) Organic growth 1.6 %, adjusted for deconsolidation of subsidiary Terveyden Tuottajat (TT) 2) Adjusted for deconsolidation of subsidiary Terveyden Tuottajat (TT) and currency effect, net sales increased 4%

7 7 Higher operating profit due to higher occupancy in new units and improved planning and processes Q vs. Q4 2015: Net +26m + Improved occupancy in units that were under start-up during Q Improved planning and processes + Acquisitions - Lower contribution from home care - Net new / ended outsourcing and staffing contracts

8 8 Strong cash generation in Q4 SEKm Q Q Operating profit (EBITA) Change in working capital, paid tax and non cash items Cash flow after change in working capital Net investments in tangible and intangible assets Operating cash flow Interest received/paid Free cash flow Net of acquisitions / divestments Cash flow from financing Total cash flow Net debt 2,722 2,827 Net debt/ebitda 2.4x 2.6x

9 9 Quality & employees: good results from customer surveys Attendo s quality definition Examples from fourth quarter 2016 Implementation plan/methods Client survey Continued solid quality results throughout the organization. Attendo s quality thermometer for 2016 Implementation Client amounted to 85% plan/methods survey Projects Risk analysis Systematic quality work Internal audit Satisfied individuals Systematic quality work based on continuous improvement Best available knowledge Specific events Values External inspections Attendo s home Projects care in Sweden got higher Values customer satisfaction than LA and other private, according to The National Board of Health and Welfare Attendo s life style nursing homes scored high in the same survey - Attendo got 85%, vs 82% average Ongoing projects to take on around 400 people with an immigrant background as interns in Sweden Successful project to ensure access to competence: Philippine nurses are currently working and trained in Sweden

10 10 Summary Full Year 2016 Solid development in line with long term targets Continued strong demand for new own homes. 20 new own homes were opened with 770 beds. Increased pace of beds under construction, 1,935 by end of the year Net sales of SEK 10.2bn (9.8), growth of 7% adjusted for currency and deconsolidation Operating profit (EBITA) of SEK 1,002m (933) Operating margin (EBITA) of 9.8% (9,5) Operating cash flow of SEK 805m (765) The Board of Directors proposes a dividend of SEK 1.22 per share in line with Attendo s policy Net sales by service offering 19% 19% Net sales by contract model 30% 8% 62% 62% Care for older people Care Healthcare Own operations Outsourcing Staffing

11 2011A 2012A 2013A 2014A 2015A 2016A Strong market fundamentals ~ new beds required ( ) Thousands; beds 8,0 7,5 7,0 6,5 6,0 Demand for new beds per year SWE and FIN Nursing homes, Share of new beds % 22% 5,5 5,0 4,5 4,0 3,5 3,0 2,5 2,0 1,5 1,0 0,5 3,4 2,3 1,1 2,8 1,8 1,0 3,1 2,1 1,0 4,3 3,0 1,3 4,0 2,6 1,4 4,9 3,3 1,6 Finland Sweden 17% 62% 38% 40% Attendo Other private Local authority 0,0 Sweden Finland 1) Driven by demography, stricter care need evaluation, replacement of old capacity, private penetration, financing. Source: SCB, Socialstyrelsen, Attendo 11

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13 13 Disclaimer This presentation has been prepared by Attendo AB (publ) (the Company ) solely for use at this presentation and is furnished to you solely for your information and may not be reproduced or redistributed, in whole or in part, to any other person. The presentation does not constitute an invitation or offer to acquire, purchase or subscribe for securities. By attending the meeting where this presentation is made, or by reading the presentation slides, you agree to be bound by the following limitations. This presentation is not for presentation or transmission into the United States or to any U.S. person, as that term is defined under Regulation S promulgated under the Securities Act of 1933, as amended. This presentation contains various forward-looking statements that reflect management s current views with respect to future events and financial and operational performance. The words believe, expect, anticipate, intend, may, plan, estimate, should, could, aim, target, might, or, in each case, their negative, or similar expressions identify certain of these forward-looking statements. Others can be identified from the context in which the statements are made. These forward-looking statements involve known and unknown risks, uncertainties and other factors, which are in some cases beyond the Company s control and may cause actual results or performance to differ materially from those expressed or implied from such forward-looking statements. These risks include but are not limited to the Company s ability to operate profitably, maintain its competitive position, to promote and improve its reputation and the awareness of the brands in its portfolio, to successfully operate its growth strategy and the impact of changes in pricing policies, political and regulatory developments in the markets in which the Company operates, and other risks. The information and opinions contained in this document are provided as at the date of this presentation and are subject to change without notice. No representation or warranty (expressed or implied) is made as to, and no reliance should be placed on, the fairness, accuracy or completeness of the information contained herein. Accordingly, none of the Company, or any of its principal shareholders or subsidiary undertakings or any of such person s officers or employees accepts any liability whatsoever arising directly or indirectly from the use of this document.