Norlandia Health & Care Group AS Q3 Interim Report 2017

Transcription

1 Norlandia Health & Care Group AS Q3 Interim Report 2017

2 CONTENT CONTENT... 2 KEY FIGURES... 3 Q HIGHLIGHTS... 3 NORLANDIA HEALTH & CARE GROUP AS... 5 GROUP ACTIVITIES... 5 FINANCIALS... 6 GROUP FINANCIAL STATEMENT...14 FINANCIAL STATEMENT FOR THE PARENT COMPANY...23 GROUP WEB PAGES...26

3 KEY FIGURES NOK million Q3 17 Q2 17 YTD 17 Q3 16 Q2 16 YTD Total revenues 1, , , , , , ,154.1 EBITDA EBITDA (%) 6.8 % 4.5 % 5.7 % 11.4 % 11.4 % 9.5 % 8.0 % EBIT EBIT (%) 5.1 % 2.8 % 4.0 % 9.7 % 9.7 % 7.8 % 6.2 % EBT EBT (%) 4.8 % -1.7 % 1.0 % 0.7 % 7.2 % 5.8 % 4.3 % Q HIGHLIGHTS Q3 17 revenues of NOK 1,195.3 million and EBIT of NOK 61.0 million (5.1%) Property gains of NOK 25.5 million related to Preschools in Norway and Finland Signed contract for one new project within Real Estate New subsidiary (Norlandia Sjøflyhavna AS) in the Preschools segment acquired in September 2017 Entered new markets within Preschools Revenue per quarter (NOKM): Segment distribution Q3 17 (%): NORLANDIA HEALTH & CARE GROUP AS Page 3

4 EBIT per quarter (NOKM): EBIT distribution Q3 17 (NOKM): NORLANDIA HEALTH & CARE GROUP AS Page 4

5 NORLANDIA HEALTH & CARE GROUP AS Norlandia Health & Care Group AS (NHC) was established in December The transfer of the shares to the newly established company was a common control transaction outside the scope of IFRS 3 Business Combinations. Book values have been used to account for all restructuring transactions as if the reorganization occurred at the beginning of the first period presented. NHC is a leading Nordic provider of care services and operates in the following segments; Preschools, Care, Integration Services, Individual & Family and Real Estate. Below is a simplified overview of the Group s reporting structure and the operating companies within each segment. This should not be regarded as a legal structure for the Group. For further information on each segment, we refer to the 2016 Annual Report and the respective subsidiaries web pages. NORLANDIA HEALTH & CARE GROUP PRESCHOOLS CARE INTEGRATION SERVICES INDIVIDUAL & FAMILY REAL ESTATE NORLANDIA PRESCHOOLS NORLANDIA CARE HERO GROUP ABERIA HEALTHCARE CARE PROPERTIES KIDSA BARNEHAGER GROUP ACTIVITIES The third quarter of 2017 has been characterized by focus on improvement of operations, organic growth as well as investments in two smaller companies which will form the platform for our growth in new geographies within Preschools. The management continues to work with the process of integrating all operating groups into one united organization. This includes a joint strategy process aiming for a set of common strategic goals for the Group as well as individually tailored operating strategies for each subsidiary. NORLANDIA HEALTH & CARE GROUP AS Page 5

6 FINANCIALS Consolidated Income Statement per 30 September 2017 (unaudited) The Group reported consolidated operating revenue of NOK 1,195.3 million in Q3 17 compared to NOK 1,187.7 million in Q2 17 and NOK 1,283.9 million in Q3 16. The topline is in line with Q2 17 levels, however, with a solid margin improvement. Revenues are lower than Q3 16 which represented a peak level within Integration Services. The Care segment has also seen a decline since Q3 16, however with a positive revenue development over the past two quarters. High activity within the Preschool segment is positively affecting the topline. EBIT for Q3 17 ended at NOK 61.0 million (5.1%) compared to NOK 33.2 million (2.8%) in Q2 17 and NOK million (9.7%) in Q3 16. The margin improvement compared to Q2 17 can be explained by higher profitability within the Care segment in addition to realized profits within Real Estate. The Preschool segment is experiencing a temporary drop in margins due to seasonal reduction in occupancy. Personnel expense in Q3 17 was NOK million, representing 69.6% of revenues. The decline in personnel expense compared to Q2 17 relates to seasonal change, reduced downscaling cost within Integration Services as well as low sick leave. Total Operating expense ended at NOK 1,114.5 million in Q3 17. Consolidated Balance Sheet Statement per 30 September 2017 (unaudited) Total assets ended at NOK 3,690.4 million per end of Q3 17 compared to NOK 3,684.4 million at end of Q2 17 and NOK 4,239.3 million at end of Q4 16. Total debt decreased by NOK 26 million during Q3 17, mainly due to currency effects. Total equity per 30 September 2017 ended at NOK million compared to NOK million at end of Q2 17. The increase is related to profit for the period despite a negative currency translation effects from foreign operations of NOK during Q3 17. The cash position of the Group per 30 September 2017 ended at NOK million compared to NOK million per 30 June The reduction in cash is mainly due to cash consideration for acquisitions within the Preschool segment and a lower level of prepayments from customers. NORLANDIA HEALTH & CARE GROUP AS Page 6

7 Business Segments PRESCHOOLS Revenue per quarter (NOKM): EBIT per quarter (NOKM): The revenue for the Preschool segment in Q3 17 ended at NOK million compared to NOK million in Q2 17 and NOK million in Q3 16. EBIT in Q3 17 was NOK 26.2 million (5.6%) compared to NOK 40.8 (8.4%) million in Q2 17 and NOK 19.5 (5.8%) million in Q3 16. The significant revenue increase from Q3'16 to Q3'17 is driven by the consolidation of Kidsa Preschools at year end 2016 (accounting for approximately 50% of the growth) as well as establishment of new units. Q3'17 is affected by an expected seasonal reduction in occupancy in July and August, explaining the decrease in revenue from Q2'17. The number of preschools increased with 14 units during Q3 17, which will have a full revenue effect from Q4'17. Over the same period, two smaller units closed down in Finland, bringing the total number of units to 229 per end of Q3'17. Anticipated start-up costs and initially lower occupancy rate for the newly established preschools have had a negative effect on the Q3'17 profit, which is expected to normalize going forward. The Group invested in preschool operations in both Poland and Germany in Q3 17. Whilst these operations are still relatively small scale, growth in these markets is expected going forward. A slight increase in occupancy in Q4 17 together with reduced start-up cost is expected to have a positive impact on the profitability during Q4 17. Overall, the segment is expected to continue its stable growth with a further upside potential on margins as new units reach their full capacity. NORLANDIA HEALTH & CARE GROUP AS Page 7

8 CARE Revenue per quarter (NOKM): EBIT per quarter (NOKM): The revenue in the Care segment in Q3'17 ended at NOK million compared to NOK million in Q2 17 and NOK million in Q3'16. EBIT in Q3'17 ended at NOK 12.6 million (3.2%) compared to NOK -4.1 million (-1.1%) in Q2 17 and NOK 20.9 (5.0%) million in Q3'16. The Care segment is showing a stable top-line with an increased margin compared to Q2'17. The EBIT in Q3 17 was significantly lower than in Q3 16. The main reason for the reduction is the termination of two large contracts in Sweden which is impacting both revenue and profit. EBIT increased in Q3 17 compared to Q2'17 due to seasonality and improvements within the home care segment. Furthermore, reduced one-off cost related to overhead has contributed positively. The Group secured one medium sized tender for elderly care in Sweden during Q3 17 which will commence in Q2'18. The Group has also received a notice of prolongation of the contract for the patient hotel in Trondheim with one more year, resulting in a total of nine new or extended contracts year to date. Furthermore, the Group secured a major contract for establishing a new own management unit in Sweden. The unit will open in 2019 with a contract length of 15 years. The market for tenders is still highly competitive and the Group aims to diversify its contract portfolio by adding more care units operated under own management. The market for home care is expected to grow significantly in the future and profitability will continue to be dependent on scale and efficiency in operations as well as increase in tariffs. NORLANDIA HEALTH & CARE GROUP AS Page 8

9 INTEGRATION SERVICES Revenue per quarter (NOKM): EBIT per quarter (NOKM): The revenue for Integration Services in Q3 17 ended at NOK million compared to NOK million in Q2'17 and NOK million in Q3 16. The EBIT in Q3 17 was NOK -5.4 million (-3.5%) compared to NOK -5.7 million (-3.2%) in Q2'17 and NOK 35.6 million (10.6%) in Q3 16. The negative development in both revenue and EBIT is driven by the close-down of reception centers in Norway and Sweden. As described in the Q2'17 report, Hero Group lost an arbitration process regarding a dispute with the two former owners of Hero Tolk AB in Sweden. The Q3'17 numbers include a one-off legal cost of NOK 6 million related to the conclusion of the dispute. Adjusted for this extraordinary cost, Hero Group reported a positive EBIT in Q3'17. Compared to 2016, the numbers in 2017 have shown a negative development on both revenue and EBIT. The negative development within reception centers seen since Q3 16 has continued through Q3 17 and will continue through Q4 17. The downscaling of reception centers continues to have a negative effect on margins. All costs related to cancelled contracts known per the reporting date will be booked in Q3 17 and Q4 17, resulting in a more normalized However, there is still a risk of further cancellations if the current activity level prevails. The operations in Germany are developing according to plan and the third German reception center commenced operation in Berlin during Q3'17. At the end of Q3'17, Hero had nearly a thousand residents in the new German centers. The operation is moving away from a pure project team to a stronger and more stable local organization to secure stable growth going forward. The business areas for interpretation and education continue to deliver positive margins, however, lower demand from the reception centers is affecting both volumes and margins. On the other hand, tender activity is high and future growth is expected. We expect the demand for interpretation- and education services to continue to develop favorably over the coming quarters due to increased municipality integration. The education division has already won new tenders and we expect further growth in this area in several countries. NORLANDIA HEALTH & CARE GROUP AS Page 9

10 INDIVIDUAL & FAMILY Revenue per quarter (NOKM): EBIT per quarter (NOKM): The revenue within the Individual & family segment ended at NOK million in Q3 17 compared to NOK million in Q2 17 and NOK million in Q3 16. The increase in revenue compared to Q2 17 is mainly due to an increase in respite care in Norway and a full quarter effect from the Q2'17 acquisitions. Q3 is traditionally a good quarter for respite care due to an increased level of summer activities, however, partly offset by lower demand in the child care segment which have high activity levels during Q4 and Q1. The EBIT for the segment was NOK 2.9 million (1.8 %) for Q3 17 compared to NOK 2.8 million (1.9 %) in Q2 17 and NOK 8.2 million (5.3%) in Q3 16. The positive development related to child care in Norway continued during Q3'17. Both the Norwegian and Swedish assisted living operations delivered positive margins in Q3 17, while the Swedish child care market delivered a negative margin. Furthermore, the Group won six large tenders during Q3 17 that will materialize in Q4 17. The Individual & Family segment continue to experience strong underlying demand for its services. In Norway, demand is developing favorably but competition remains high which is putting pressure on margins. In Sweden, we are still experiencing low demand in the child care market. We have during Q3'17 reorganized some contracts in the segment and we expect an increased margin in Q4'17. The Swedish assisted living segment is experiencing stable margins with a solid underlying demand. We expect the stable revenue development to continue throughout the year, and in 2018 we expect to see a gradual increase in margins. NORLANDIA HEALTH & CARE GROUP AS Page 10

11 REAL ESTATE Revenue per quarter (NOKM): EBIT per quarter (NOKM): The activity within the Real Estate segment has been high during Q3 17, with three Preschool properties sold. One new contract has been signed related to the building of a new preschool unit in Finland, expected to be completed in Q3'18. Furthermore, Norlandia is building a solid pipeline of new preschool property projects to be finalized in 2018 and This includes units in Norway, Sweden, Finland and Poland. Within in the Individual & Family segment, Norlandia has signed three new projects, of which the first unit is expected to be finalized during first half Outlook and main risk factors The Group has operations in Norway, Sweden, Finland, the Netherlands Poland and Germany. Currency fluctuations may have a negative effect on the Group s financial conditions and results of operations. The Group is predominantly exposed to the SEKNOK exchange rate as the financial statements are presented in NOK and around 40% of revenues are generated in SEK. However, the Group has a corresponding share of costs in SEK and about 58% of its bond debt is denominated in SEK, both representing natural hedges to the operations. The Group has a small but growing exposure to the EURNOK exchange rate as operations in the Netherlands and Finland are growing and operations in Germany are being established. The Group is monitoring the exposure and will consider hedging this exposure in the future. The regulatory framework has a significant influence for the Group and our ability to deliver services with high quality. Political risk is therefore present as major shifts may have a significant impact in the way we deliver our services. The uncertainty in the near term is mainly related to cap on profitability or dividends, and de-privatization of care services. The discussions and positions are as they have been for the last years, but with expected and increased intensity in Norway due to the election. In general, these discussions mainly relate to Norway and Sweden. The Group follows closely the political discussions and will adapt to any political shifts in order to deliver the best quality for our customers. For the Preschools segment in Norway there is a consultation draft that may result in requirement in a minimum number of employees per child in the Preschool, starting in 1 August If the draft is implemented, we will seek to make necessary changes in our operation in order to limit any unfavorable effects. NORLANDIA HEALTH & CARE GROUP AS Page 11

12 For the Integration Services segment, we have experienced an extraordinary market situation in 2015 and 2016, with high number of asylum seekers. Today the number of asylum seekers to the Nordic region is at a historical low, and still there are no indications that the situation will change in the near future. There is still a high number of refugees in the southern parts of Europe and close to European borders; however, the agreement between EU and Turkey is so far preventing the refugees to enter European countries. Use of Alternative Performance Measures (APM) Alternative Performance Measures (APM) is understood as a financial measure of historical or future financial performance, financial position, or cash flows, other than a financial measure defined or specified in the applicable financial reporting framework. Norlandia Health & Care Group reports the financial measure EBITDA and EBIT in its quarterly reports, which are not financial measures as defined in IFRS. The reported numbers are included in the financial statements and can be directly reconciled with official IFRS line items. The APMs are used consistently over time and accompanied by comparatives for the corresponding previous periods. Statement from the Board of Directors The interim financial statements are, to the best of our knowledge and based on our best opinion, presented in accordance with International Financial Reporting Standards and the information provided in the financial statements give a true and fair view of the Company s and Group s assets, liabilities, financial position and result for the period. The financial report provides an accurate view of the development, performance and financial position of the Company and the Group, and includes a description of the key risks and uncertainties the Group is faced with. Oslo, 8 November 2017 Board of Directors of Norlandia Health & Care Group AS Kristian A. Adolfsen Roger Adolfsen Åge Danielsen Ingvild Myhre Chairman of the Board Member of the Board Member of the Board Member of the Board Yngvar Tov Herbjørnssønn CEO NORLANDIA HEALTH & CARE GROUP AS Page 12

13 For more information: Kristoffer Lorck CFO Ticker codes: Norlandia Health & Care Group AS has issued two bond loans listed on Oslo Stock Exchange ( with the following names and ticker codes: Norlandia Health & Care Group AS 16/21 FRN C Ticker: NHC01 Norlandia Health & Care Group AS 16/21 FRN SEK C Ticker: NHC02 This report was released for publication on 8 November The report is available on NORLANDIA HEALTH & CARE GROUP AS Page 13

14 GROUP FINANCIAL STATEMENT CONSOLIDATED INCOME STATEMENT (Unaudited) All figures in NOK million Notes Q3 17 YTD 17 Q3 16 FY 16 OPERATING INCOME Revenue 1, , , ,062.7 Other operating revenue Total operating revenue 3 1, , , ,177.5 OPERATING EXPENSES Cost of goods sold Personnel expenses , ,352.9 Other operating expenses ,217.0 EBITDA Depreciation and Amortisation Operating profit (EBIT) FINANCE Net finance Share of post-tax profits of associates Profit before income tax Income tax Profit for the period NORLANDIA HEALTH & CARE GROUP AS Page 14

15 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Unaudited) All figures in NOK million Notes Q3 17 YTD 17 Q3 16 FY 16 OTHER COMPREHENSIVE INCOME Profit for the period Changes in pension liabilities Deferred tax relatin to these items Total items not reclassified Currency translation differences Items that will be reclassified Other comprehensive income, net of tax Total compr. income for the period ATTRIBUTABLE TO Equity holders of the parent company Non-controlling interest Total compr. income for the period ATTR. TO EQUITY HOLDERS, ARISING FROM Continuing operations Discontinuing operations Equity holders of the parent company NORLANDIA HEALTH & CARE GROUP AS Page 15

16 CONSOLIDATED BALANCE SHEET STATEMENT (Unaudited) ASSETS All figures in NOK million Notes NON-CURRENT ASSETS Deferred tax assets Intangible assets 7 2, , ,121.4 Property, plant & equipment Investments in associated companies Other investments Other long term receivables Total non-current assets 2, , ,728.6 CURRENT ASSETS Inventories Accounts receivables Other short-term receivables Cash and cash equivalents ,060.2 Total current assets ,510.7 Total assets 3, , ,239.3 NORLANDIA HEALTH & CARE GROUP AS Page 16

17 CONSOLIDATED BALANCE SHEET STATEMENT (Unaudited) EQUITY & LIABILITIES All figures in NOK million Notes EQUITY Share capital Share premium Other equity Equity attributable to owners of the parent Non-controlling interests Total equity , LIABILITIES Pension liabilities Deferred tax liability Bond loans 8 1, ,772.0 Interest bearing debt to credit institutions Derivative financial liabilities Other non-current liabilities Total non-current liabilities 2, , ,350.6 Accounts payable Short term interest bearing debt Taxes payable Other current liabilities Total current liabilities , ,406.8 Total liabilities 3, , ,757.4 Total equity & liabilities 3, , ,239.3 NORLANDIA HEALTH & CARE GROUP AS Page 17

18 CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) All figures in NOK million Notes Q3 17 YTD 17 FY 16 CASH FLOW FROM OPERATING ACTIVITIES EBITDA Taxes paid Gain on sale of assets Change in net working capital Changes to other time restricted items Net cash flow from operating activities CASH FLOW FROM INVESTING ACTIVITIES Proceeds from sale of assets Net investment in property, plant and equipment Net investment in shares in subsidiaries Net investment in shares in other companies Interest received Net change in financial receivables Net cash flow from investing activities CASH FLOW FROM FINANCING ACTIVITES Issuance of interest-bearing debt - - 1,546.4 Repayment of interest-bearing debt Payment to non-controlling interest Net interest paid and other financial items Dividends paid Purchase of shares from non-controlling interest Net cash flow from financing activities CHANGES IN CASH AND CASH EQUIVALENTS Net change in cash and cash equivalents Effects of changes in exchange rates on cash Cash and cash equivalents at the beginning of period , Cash and cash equivalents at end of period ,060.2 NORLANDIA HEALTH & CARE GROUP AS Page 18

19 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Unaudited) All figures in NOK million Notes Share capital Share premium Retained earnings Transation difference Total equity to holders of Non-cont. the parent interest Total equity Balance as at 31 December ,249.5 Profit Other comprehensive income Total comprehensive income Incorporaton Capital Increase Capitalization issue Non-controlling interest aquired in business combination Acqusition of non-controlling interest Hospitality Invest Distribution to owners Acqusition of shares from non-controlling interest Consideration for shares in subsidiaries Total contributions and distributions Balance as at 31 December Balance as at 31 December Profit Other comprehensive income Total comprehensive income Payment of dividends Non-controlling interest aquired in business combination Own shares Other Total contributions and distributions Balance as at 30 September Oslo, 8 November 2017 The Board of Directors of Norlandia Health & Care Group AS Kristian A. Adolfsen Roger Adolfsen Åge Danielsen Ingvild Myhre Chairman of the Board Member of the Board Member of the Board Chairman of the Board Yngvar Tov Herbjørnssønn CEO NORLANDIA HEALTH & CARE GROUP AS Page 19

20 NOTES Note 1 - General The consolidated financial statements of Norlandia Health & Care Group AS comprise the company and its subsidiaries, collectively referred to as the Group. The Group operates within markets that involve certain operational risk factors. The Group is further exposed to risk that arise from its use of financial instruments. The various companies within the Group are systematically working to mitigate and manage risk on all levels. The annual report for 2016 offers additional description of the Group s objectives, policies and processes for managing those risk elements and the methods used to measure them. Note 2 Basis for preparation The interim financial statements for the Group have been prepared in accordance with International Financial Reporting Standards (IFRS) as approved by the European Union and their interpretations adopted by the International Accounting Standards Board (IASB). The interim report does not include all the information required for complete annual consolidated financial statements and should be read in conjunction with the financial statements of the Group for The accounting policies are the same as those described in the annual report for The interim financial report has been prepared based on the principles of IAS 34 Interim Financial Reporting. The interim financial statements are unaudited. Note 3 Revenue, EBITDA and EBIT by segment The Group has identified operation segments in accordance with the reporting requirement in IFRS 8. Based on the legal structure and the internal reporting the reportable segments are; Preschool, Care, Integration Services, Individual & Family and Real Estate. The segment Other includes both Group eliminations as well as Other operating revenue not related to the identified segments. As per end of Q3 17, LTM pro-forma EBITDA was NOK million. NOK million Q3 17 Q2 17 YTD 17 Q3 16 Q2 16 YTD Revenue by segment Preschools , , ,397.1 Care , , ,694.7 Integration Services , ,535.2 Individual & Family Real Estate Other/Elim Total 1, , , , ,177.0 NOK million Q3 17 Q2 17 YTD 17 Q3 16 Q2 16 YTD EBITDA by segment Preschools Care Integration Services Individual & Family Real Estate Other/Elim Total NORLANDIA HEALTH & CARE GROUP AS Page 20

21 NOK million Q3 17 Q2 17 YTD 17 Q3 16 Q2 16 YTD EBIT by segment Preschools Care Integration Services Individual & Family Real Estate Other/Elim Total Note 4 - Amortization Primarily relates to amortization of excess values in Norlandia Care Group AS and investments in subsidiaries within the Care segment. Note 5 Net finance The finance income and loss is presented as a net amount in the profit and loss statement whereas the split is shown in the table below. The currency effect is presented as a net amount and mainly relates to the bond issued in SEK. NOK million Q3 17 Q2 17 YTD 17 Net Finance Interest income Interest expenses Non-realized currency effects Other finance income Other finance cost Total Note 6 Tax calculations The Income tax for the quarter is based on preliminary tax calculations for the year. These may become subject to change in the annual statements. Note 7 Intangible assets Intangible assets were NOK 2,176.2 million at 30 September 2017 compared to NOK 2,155.2 million at 30 June 2017 and NOK 2,121.4 million at 31 December This primarily relates to goodwill, excess value on customer contracts and trademark, generated through the various acquisitions within the Group. Note 8 Bond Loans in the Group The Group has bond loans issued in the market per Q3 17 divided in two tranches shown in the table below. NORLANDIA HEALTH & CARE GROUP AS Page 21

22 Bond Loans Maturity Currency Amount (million) Norlandia Health & Care Group AS 12/2021 NOK 750 Norlandia Health & Care Group AS 12/2021 SEK 1,100 Total net debt as defined in the bond agreement was NOK 1,577.7 million per end of Q3 17. Note 9 Events after balance sheet date The Group as acquired a new company with one unit within Preschools in Norway including a property which is integrated in November NORLANDIA HEALTH & CARE GROUP AS Page 22

23 FINANCIAL STATEMENT FOR THE PARENT COMPANY INCOME STATEMENT (Unaudited) All figures in NOK '000 Notes Q3 17 YTD 17 FY 16 OPERATING INCOME Revenue Other operating revenue Total operating revenue OPERATING EXPENSES - Cost of goods sold Personnel expenses Other operating expenses ,771-1,479 EBITDA ,340-1,479 - Depreciation - - Amortization - - Operating profit (EBIT) ,340-1,479 - FINANCE - Finance income 12,360 31,788 5,132 Finance costs 1-4, ,681-28,270 Share of post-tax profits of associates Profit before income tax 7,412-74,233-24,617 - Income tax - - 5,908 Profit for the period 7,412-74,233-18,709 NORLANDIA HEALTH & CARE GROUP AS Page 23

24 BALANCE SHEET STATEMENT (Unaudited) ASSETS All figures in NOK '000 Notes NON-CURRENT ASSETS Deferred tax assets 5,908 5,908 Shares in subsidiaries 1,281,535 1,231,535 Loans to group companies 761, ,550 Bond and other receivables - 141,000 Total non-current assets 2,049,390 1,576,993 CURRENT ASSETS Other short-term receivables 16, Cash and cash equivalents 27, ,740 Total current assets 44, ,931 Total assets 2,093,955 2,265,924 NORLANDIA HEALTH & CARE GROUP AS Page 24

25 EQUITY AND LIABILITIES All figures in NOK '000 Notes EQUITY Share capital 300, ,000 Other paid-in capital 47,594 47,594 Retained earnings -74,233 - Total equity 273, ,594 LIABILITIES Group liabilities - 144,316 Bond loans 1 1,798,036 1,771,992 Total non-current liabilities 1,798,036 1,916,308 Accounts payable Short term interest bearing debt 1 22,728 - Other current liabilities 57 1,200 Total current liabilities 22,558 2,022 Total liabilities 1,820,594 1,918,330 Total equity & liabilities 2,093,955 2,265,924 NOTES: NOTE 1 Finance Costs Finance Costs in Q3 17 includes NOK 22.6 million in interest expense related to the bond loan. Net currency movement for the period was NOK 19.2 million for the third quarter and -23 million YTD. NORLANDIA HEALTH & CARE GROUP AS Page 25

26 GROUP WEB PAGES Parent & subsidiaries Norlandia Care Group AS Hero Group AS Kidsa Drift AS Aberia Healthcare AS NORLANDIA HEALTH & CARE GROUP AS Page 26

27 NORLANDIA HEALTH & CARE GROUP AS Head Office Øvre Vollgate OSLO NORWAY NORLANDIA HEALTH & CARE GROUP AS Page 27