Q3 July September 2017

Transcription

1 Q3 July September November 2017

2 Q3 financial highlights Revenue Operating revenue declined 4% to SEK 1,614m (1,676). Divesting the home care operation has impacted revenues in the quarter negatively. Organic decline in the quarter of 4.3% Operating profit Operating profit (EBIT) of SEK 110m (159), incl. capital loss from sale of home care operation of SEK 14m Operating margin 6.8% (9.5) Adjusted operating profit Adjusting for capital loss of SEK 14m (sale of home care operation) adjusted operating profit was SEK 125m (159) Adjusted operating margin at 7.7% (9.5) 2

3 Operational highlights in Q3 (I/IV) Individual & Family - Savings program paying off but lower market demand in certain areas Growth and profitability hampered by lower utilisation in children and youth area and delayed organic start-ups due to lengthy handling process at IVO (Health and Social Care Inspectorate) Market demand weakened within children & youth I&F improvement program well on track and expected to increase efficiency further Improving profitability trend in Q3 vs. past quarters We expect I&F to be back at an operating margin of 9-10% for the 2018 fiscal year Individual & Family 3

4 Personal Assistance Operational highlights in Q3 (II/IV) Personal Assistance - Enhanced visibility in a tough market Humana continues to gain market share in very tough market conditions Reimbursement level proposed to increase by 1.5% per hour from January 1, 2018 (earlier 1.0%) New collective bargaining agreement with salaries increasing with 2.2% from Oct 1 st 2017 implies continued margin squeeze, although slightly eased Q3 profitability impacted positively from absence of salary increase We continue to compensate well for margin squeeze due to high operational efficiency 4

5 Operational highlights in Q3 (III/IV) Elderly Care Full focus on start-ups Revenue development and profitability in the quarter negatively impacted by divesture of home care operation to Attendo Third own managed elderly care home in Åkersberga was successfully opened after the end of the quarter Ramping up of both Åkersberga and Växjö in line with plans but has impact on profitability Humana again comes out very well in the annual quality survey (öppna jämförelser) by the National Board of Health and Welfare Elderly Care 5

6 Other Nordics Operational highlights in Q3 (IV/IV) Other Nordics - Finland strong, Norway improving Focus on starting and ramping up new units in both Norway and Finland Improvement in Norway in Q3 but challenging market conditions in certain areas Improvement program on track and we expect 2018 operating margin for Norway to be higher than the 6% overall group target Continued strong development in Finland. Humana expands into the Finnish elderly care market as well as the market for LSS through acquisition of Nordic Senior Services Oy Small acquisition of Ryhmäkoti Raide Oy with residential care for children and youth in Tampere area Work on the SOTE reform continues and a new proposal on the freedom of choice model is expected in March

7 Operating revenue 1,676-4% +9% 1,614 Humana Q Operating revenue Comments Operating revenue decreased by 4% to SEK 1,614m impacted by divesture of home care operations organic decline of 4.3% explained by lower utilisation within children & youth area in Individual & Family and Norway Acquisitions contributed with SEK 31m to revenue Q Q

8 Operating profit (EBIT) % % % % 50 0 Q % Q EBIT EBIT-margin Adj. EBIT and Adj. EBIT-margin % % -21% % Humana Q Operating profit Comments Operating profit was SEK 110m (159). Including capital loss from divesture of home care operation of SEK 14m. Acquisitions contributed with SEK 6m. Adjusted operating profit was SEK 125m (159), an operating profit margin of 7.7% (9.5) Negative impact from: weakened demand for children and youth care in Individual & Family (I&F) and Norway resulting in a lower utilisation rate impact from start-ups in Other Nordics and Elderly Care 50 0 Q Q Adj. EBIT Adj. EBIT-margin 8

9 Operating revenue Humana 9M 2017 Operating revenue Comments 4,681 +6% 4,940 Operating revenue increased by 6% to SEK 4,940m driven by Other Nordics organic decline of 1.9% Acquisitions contributed with SEK 589m to revenue The revenue decline is explained by lower utilisation for children and youth care within Individual & Family and Norway 9M M

10 Operating profit (EBIT) % M M 2017 EBIT EBIT-margin Adj. EBIT and Adj. EBIT-margin % % % M M 2017 % % Humana 9M 2017 Operating profit Comments Operating profit was SEK 250m (256 incl. cost for IPO of SEK 40m). Including capital loss from sale of home care operation of SEK 14m and capital gain from sale and lease-back of SEK 14m. Acquisitions contributed with SEK 56m. Adjusted operating profit was SEK 250m (296) Operating profit margin of 5.1% (5.5), adjusted margin 5.1% (6.3) Negative impact from: lower utilisation for children and youth care within Individual & Family effects from the conversion of migration units in (I&F) with lower utilisation in those units impact from lower demand for migration related service in Norway and on-going conversion program Adj. EBIT Adj. EBIT-margin 10

11 Operating revenue 553-3% 537 Individual & Family Q Comments Operating revenue decreased by 3% Q Q Operating profit (EBIT) -11% % % % organic decline of -5.6% explained by lower utilisation for children and youth care area Operating profit declined compared with last year to SEK 70m (79), margin at 13.0% (14.3% in Q3 2016) lower occupancy in children and youth care area program to improve efficiency and lower costs continues according to earlier communication 0 Q Q EBIT EBIT-margin 0 Average Q Q /-% Clients 2,159 1, Employees 2,621 2,

12 Operating revenue Personal Assistance Q Comments Operating revenue decreased by 1% to SEK 667m explained by: fewer clients and hours compared with last year Q Q Operating profit (EBIT) +14% Q Q % tough market conditions Operating profit increased to SEK 49m (43), operating margin 7.4% (6.4) positive effect from lack of salary increases in the quarter (implemented as of 1st of October 2017) operational efficiency Average Q Q /-% EBIT EBIT-margin Clients 1,897 1, Employees 5,491 5,

13 Operating revenue Elderly Care Q % 128 Comments Q Q Operating profit (EBIT) 6-121% 4,4 % Operating revenue decreased by 12% in Q to SEK 128m but organic growth of 4%. The decline is due to: sale of home care operation, SEK 43m (64) in Q positive effect from own managed elderly care homes Operating profit SEK -1m (6) of which now divested operation was 0 (1) Margin 1.1% (4.4) profitability impacted from new openings in Växjö and Åkersberga Q Q ,1 Average Q Q /-% EBIT EBIT-margin Clients 2,935 1, Employees 1,329 1,

14 Operating revenue Other Nordics Q % 282 Comments Operating revenue declined 8% to SEK 282m (307), organic decline at constant currency of -12.0%. Acquisitions contributed with SEK 15m to revenue Q Q Operating profit decreased to SEK 26m (44), margin 9.3% (14.2) due to: - migration related services in Norway contributes less to profitability Operating profit (EBIT) 44-41% 26 % Conversion- and efficiency program in Norway develops according to plan Finland continues its solid development. Acquired Nordic Senior Services Oy in Q3 and Rymäkoti Raide Oy after end of period 14.2% 9.3% Q Q EBIT EBIT-margin Average Q Q /-% Clients 1,942 2, Employees 1,235 1,

15 Central costs/other Costs Q Q Underlying central costs Capital loss home care sale - 14 Cost of long term incentive plan - 2 Cost for acquisitions -0 2 Central overhead costs Comments Central costs in Q includes SEK 14m in capital loss from divesture of home care operation and SEK 2m in cost for long term incentive program Underlying central costs in Q SEK 15m vs SEK 13m in 2016 Costs 9M M 2017 Underlying central costs Sale-and-leaseback Capital loss home care sale - 14 Cost of long term incentive plan - 2 IPO (P&L impact) 40 - Central costs for the nine-month period amounts to SEK 56m (99) Underlying central costs for the period was SEK 52 m vs. SEK 44 m last year Cost for acquisitions 15 3 Central overhead costs

16 Cash flow key highlights Q Q Comments Operating cash flow before changes in working capital Changes in working capital Underline cash flow from operations 80 4 Financial items, net Income tax paid Cash flow from operating activities Acquisitions, net cash impact Divestments, net cash impact 0 9 Cash flow for the quarter was SEK - 31m vs. SEK 6m last year. The change is explained by: approx. SEK 10m in positive impact on working capital from changed payment terms in Personal Assistance higher investments, SEK 15m changes in working capital due to calendar effects Investments Cash flow from investing activities Cash flow from financing activities 0 0 Cash flow for the period

17 Q & A

18 Appendix

19 Financial targets Revenue growth Annual growth rate in the medium term of 8-10 percent, achieved through organic growth as well as bolt-on acquisitions Profitability EBIT margin in the medium term of approximately 6 percent Capital structure The net debt in relation to EBITDA is not to exceed 3.0x Leverage may however temporarily, for example in relation to acquisitions, exceed the target level Dividend policy 30 percent of net profits are to be distributed The dividend proposal shall take into account Humana s long-term development potential and its financial position 19

20 Consolidated income statement Jul$Sep Jul$Sep Jan$Sep Jan$Sep Oct$Sep Jan$Dec SEK0M Note / Net$revenue 1$614 1$676 4$926 4$681 6$607 6$362 Other$revenue Operating0revenue Other$external$costs :238 :246 :752 :691 :1$024 :963 Personnel$costs :1$233 :1$257 :3$876 :3$644 :5$196 :4$964 Depreciation :16 :14 :45 :35 :60 :50 Other$operating$costs :17 0 :17 :55 :19 :57 Operating0costs $10503 $10517 $40690 $40425 $60298 $60033 Operating0profit Financial$revenue Financial$costs :15 :19 :56 :108 :88 :140 Unrealised$changes$in$value$of$derivatives Profit0before0tax , Income$tax :26 :34 :46 :44 :60 :58 Net0profit0for0the0period Of0which,0attributable0to: Owners$of$the$Parent$Company Net0profit0for0the0period Earnings$per$ordinary$share,$SEK,$before$dilution 5 1,34 2,21 3,01 2,23 3,66 2,87 Earnings$per$ordinary$share,$SEK,$after$dilution 5 1,34 2,21 3,01 2,23 3,66 2,87 Average$number$of$ordinary$share,$thousands 53$140 53$140 53$140 50$968 53$140 51$514 20

21 Consolidated balance sheet 30 Sep 30 Sep 31 Dec Dec 31 SEK M Assets Non-current assets Goodwill Other intangible assets Property, plant and equipment Financial assets Total non-current assets Current assets Trade receivables Other current receivables Cash and cash equivalents Total current assets TOTAL ASSETS Equity and liabilities Equity Share capital Additional paid- in capital Retained earnings Equity attributable to owners of the parent company Non- current liabilities Interest- bearing liabilities Deferred tax liabilities Total non- current liabilities Current liabilities Interest- bearing liabilities Trade payables Other current liabilities Total current liabilities TOTAL EQUITY AND LIABILITIES

22 Consolidated cash flow statement Jul5Sep Jul5Sep Jan5Sep Jan5Sep Oct5Sep Jan5Dec SEK+M / Profit+before+tax Adjustment+for: Depreciation Financial+items,+net Cash+flow+from+operating+activities+before+ changes+in+working+capital Changes+in+working+capital >122 >93 >199 >97 >473 >371 Cash+flow+from+operating+activities Financial+items,+net >4 >22 >43 >76 >66 >99 Income+tax+paid 17 >10 >22 >63 >29 >70 Cash+flow+from+operating+activities,+net Acquisition+of+subsidiaries,+net+cash+impact >13 >13 >29 >455 >48 >474 Sales+of+subsidiaries,+net+cash+impact Investments+in+other+non>current+assets,+net >44 >29 >110 >84 >167 >143 Cash+flow+from+investing+activities Proceeds+from+new+borrowings Repayment+of+borrowings 0 0 >56 >1+678 >56 >1+678 Dividend 0 0 >27 0 >27 0 New+share+issue Cash+flow+from+financing+activities Cash+flow+for+the+period Cash+and+cash+equivalents+at+start+of+period Cash+flow+for+the+period >31 6 >41 > >44 Exchange+rate+difference+in+cash/cash+equivalents >4 >4 9 > Cash+and+cash+equivalents+at+end+of+period

23 Key ratios Jul - Sep Jul - Sep Jan- Sep Jan- Sep Oct- Sep Jan- Dec / Operating revenue EBIT, % 6,8% 9,5% 5,1% 5,5% 4,9% 5,2% Interest- bearing net debt, SEK M Return on capital employed, % 2,9% 4,8% 6,5% 7,8% 8,4% 8,9% Equity/assets ratio, % 37,1% 37,6% 37,1% 37,6% 37,1% 34,8% Operating cash flow Interest- bearing net debt/adjusted EBITDA 12 months, times 4,2x 3,3x 4,2x 3,3x 4,2x 3,9x Average number full- time employees Individual & Family Average number full- time employees Personal Assistance Average number full- time employees Elderly Care Average number full- time employees Other Nordic Average number full- time employees Central functions Total average number full- time employees Number of full- time employees on the closing date Average number of customers Individual & Family Average number of customers Personal Assistance Average number of customers Elderly Care Average number of customers Other Nordic Total average number of customers Average number of ordinary shares on the closing date, 000s Equity per ordinary share, SEK

24 Segments financials Operating revenue by business area Jul - Sep Jul - Sep Jan- Sep Jan- Sep Oct- Sep Jan- Dec SEK M % % 2016/ % Individual & Family % % % Personal Assistance % % % Elderly Care % % % Other Nordics % % % Other revenue 2) 0 0 n/a 14 0 n/a 14 0 n/a Total operating revenue % % % Organic growth by business area 1) Jul - Sep Jul - Sep Jan- Sep Jan- Sep Oct- Sep Jan- Dec % / Individual & Family - 5,6% 5,5% - 2,7% 6,8% - 2,7% 4,4% Personal Assistance - 0,6% - 2,5% - 1,3% - 1,1% - 1,6% - 1,6% Elderly Care 4,0% 1,0% 11,8% - 1,0% 13,1% - 1,0% Other Nordics, local currency - 12,0% 35,7% - 10,0% 9,8% - 6,1% 7,0% Total organic growth, constant currency rate - 4,3% 3,3% - 1,9% 2,3% - 1,6% 1,1% Operating profit per business area Jul - Sep Jul - Sep Jan- Sep Jan- Sep Oct- Sep Jan- Dec SEK M % % 2016/ % Individual & Family % % % Personal Assistance % % % Elderly Care % n/a n/a Other Nordics % % % Central costs/other2) 3) n/a n/a n/a Total operating profit % % % 24