INTERIM REPORT 1/1 30/9, 2017 AINO HEALTH AB

Transcription

1 Q3 INTERIM REPORT 1/1 30/9, 2017 AINO HEALTH AB

2 Third quarter 2017 THREE IMPORTANT EVENTS NEW AGREEMENT SIGNED WITH FINNISH CONSTRUCTION COMPANY HARTELA. AINO HEALTH S FIRST AGREEMENT WITHIN THE CONSTRUCTION INDUSTRY. A NEW BUSINESS MODEL IS LAUNCHED THROUGH ASSOCIATED COMPANY MARESAN OY, OF WHICH AINO HEALTH IS A CO-FOUNDER. NEW SERVICE INTRODUCED BUSINESS HEALTH INDEX. JANUARY SEPTEMBER 2017 TURNOVER TSEK 13,505 EARNINGS AFTER FINANCIAL ITEMS TSEK -23,127 CASH FLOW TSEK -22,914 EARNINGS PER SHARE, SEK -4.3 JULY SEPTEMBER 2017 TURNOVER TSEK 4,352 EARNINGS AFTER FINANCIAL ITEMS TSEK -9,220 CASH FLOW TSEK -9,714 EARNINGS PER SHARE, SEK -1.7 AINO HEALTH AB Q3 QUARTERLY REPORT

3 Content Message from the CEO 4 About Aino Health 5 Operations during the quarter 6 Business Health index 8 Development for the Group during Q3 2017, in figures 8 Summary consolidated income statement 11 Summary consolidated balance sheet 11 Summary change in consolidated equity 12 Summary consolidated cash flow statement 12 Summary Parent Company income statement 12 Summary Parent Company balance sheet 13 Summary Parent Company change in equity 13 Summary Parent Company cash flow statement 14 Development of share capital 14 AINO HEALTH AB Q3 QUARTERLY REPORT

4 Message from the CEO We have now completed our first nine months as a listed company, and this has been a period of development for us. Through the many rewarding customer meetings we have conducted, we are approaching the major players we want to collaborate with. The signals we are receiving from the market are very positive, and external events indicate that we are getting closer to a breakthrough. From my perspective, the key to taking the next step in our development is to reach out to the management teams of the major companies we want to have as customers by building credibility. By credibility, I mean that we have an in-depth understanding of the customer s world and the challenges they face. We have made great progress with this during the quarter, which is exactly why our pipeline in Sweden and Germany is growing with an increasing number of industrial and service companies and actors within the public sector. The customers we work with today have understood the importance of putting the best interests of both the company and the individual in focus and the connection between the two. We have made our services and solutions easier to grasp, by clearly showing what they will provide in terms of increased productivity and reduced expenses. We can also assess employee satisfaction with measurable targets. We have been able to back these up with facts and figures linked to the company s own accounts. We are seeing more and more reports from companies, most recently McKinsey*, for example, showing that healthy companies have returns five times higher than those which are not healthoriented. In other words, what was previously not perceived as a determining success factor is now measurable and even more strategically important for business executives because healthy people build healthy businesses that deliver strong results. Through the activities and contacts with customers we have had during the third quarter, I am convinced we are on the right track. During the quarter, we have made significant progress, in accordance with our plan, by entering into agreements with the Finnish construction company Hartela Aino Health s first agreement within the construction industry and the infrastructure company Destia, which will utilise our combined Corporate Health Management offering. In addition, an agreement has been entered into with a Finnish subsidiary of a European player in metal production. During the period, we also introduced the innovative Business Health index (BHi) tool, initially in the Finnish market, where agreements for the offering have already been entered into with Stora Enso and Evira. The BHi intiative is further described later in this report. During the fourth quarter, we will build on the positive trend we have set in the third quarter with implemented sales activities and a three-fold increased pipeline with potential customers. When we later summarise the year, we will be able to show that our unique services deliver expected results for our customers, and the investments we have made during the year in technology development and personnel have been the right decision. More importantly, we have achieved sustainable growth, showing potential customers that Aino has a solutions portfolio, comprising knowledge and a digital platform, which will continue to grow and be a good investment for investors and customers alike. We are getting increasingly closer to the breakthrough where our current sales efforts will yield the anticipated results. The companies we are in discussions with today are major, well-known and respected brands. I am convinced that when we sign our first major contract, growth will quickly follow. Jyrki Eklund CEO Aino Health AB * McKinsey Quarterly, April 2014: The hidden value of organizational health - and how to capture it. By Aaron De Smet, Bill Schaninger, and Matthew Smith. AINO HEALTH AB Q3 QUARTERLY REPORT

5 About Aino Health The individual s health in focus through preventive health care A good work environment today is top priority for corporate executives worldwide, as it enables a company to become more competitive, achieve its business objectives and retain or attract new employees. Many management teams find this to be a great challenge. Aino Health offers futureproof solutions and services built to achieve these objectives, with measurable results. At the same time, the services improve business performance by creating increased productivity and increased involvement among the organisation s employees as health, well-being and safety become an integral part of everyday work. Aino Health is the leading supplier of Corporate Health Management solutions. We are to private and public organisations what doctors are to people. Aino Health has worked with the management teams of 150 organisations to integrate fully digitalised healthcare services into daily work. Measurable results show that employees have become healthier, more motivated and profitdriven which, in turn, generates significant savings for the companies. Corporate Health Management creates added value The Company s digitalised solutions are designed to determine the underlying causes of sickness absence so that related causes can be identified early and handled, which quickly contributes to improved results in daily activities through a focus on employee health, well-being and safety. Aino Health s solutions fit all industries and can be customised to the respective company following an analysis, agreed objectives and needs assessment. Aino Health AB (publ) is listed on NASDAQ First North (Ticker: AINO) with Erik Penser Bank as Certified Adviser. Aino Health s services contribute to improving customers health and working capability by: Reducing short and long-term sickness absence and reducing expenses Providing management with effective tools for preventing illness Improving occupational safety and health Providing preventive interventions that improve employee working conditions Measurable results based on company references: Short-term sickness absence has decreased by up to 50 percent Visits to occupational health services have decreased by 19 percent In employee surveys, Aino HealthDesk received a score of 4.5 (scale of 0 to 5) Group structure Aino Health AB is the Parent Company of a group that also includes the wholly-owned Swedish subsidiary Aino Health Sweden AB and the wholly-owned Finnish subsidiary Aino Health Management Oy. In turn, Aino Health Management Oy owns the wholly-owned Finish subsidiary Aino Active Oy. There is thus a sub-group in Finland with Aino Health Management as the Parent Company. AINO HEALTH AB Q3 QUARTERLY REPORT

6 Operations during the quarter Significant events during the period New agreement signed with Finnish construction company Hartela. Aino Health s first agreement within the construction industry. A new business model is launched through associated company Maresan Oy, of which Aino Health is a co-founder. New service introduced Business Health index. Collaboration with BARMER A collaboration with German health insurance provider BARMER, well-known for its work and coordination on sustainable Corporate Health Management solutions to improve employee health and well-being and prevent work-related health risks, has been launched during the quarter as planned. The result will be evaluated in the first quarter of next year. Prior to launch of Maresan Oy Preparations and planning to launch the company Maresan Oy have progressed according to plan. From the first quarter of 2018, the target is for at least 3,000 people to have access to Maresan s modern digital occupational healthcare services. The occupational healthcare company Maresan Oy was formed during the second quarter, of which Aino Health s subsidiary in Finland is a co-founder, together with several major players in the Finnish seafaring industry. New Finnish customers In Finland, Aino Health continues to gain new ground in Corporate Health Management. During the quarter, two Business Health index projects were started together with Stora Enso and Evira. An agreement has also been entered into with a Finnish subsidiary of a European metal manufacturing company, regarding Aino HealthManager services. Business Health index is introduced The Business Health index (BHi) is a consultative service that provides organisations with quick insight into what their comparable status is and what it takes to improve quality, productivity, and employee satisfaction when employee health and well-being are given the same focus as that of the company. BHi has initially been introduced, initially in the Finnish market, and over 100 companies signed up to participate in the launch of the new Business Health index (BHi) service on 24 October. Organisational change in Swedish operations CEO Jyrki Eklund took over responsibility for Aino Health Sweden AB as Managing Director. The reason for the change is to strengthen consultative sales in Sweden and to build a winning strategy towards customer target groups and potential partners. AINO HEALTH AB Q3 QUARTERLY REPORT

7 Intensive work in new markets Sweden and Germany continue to be new strategic markets, and here efforts have intensified to establish the Company and increase its visibility to major companies. Aino Health has conducted meetings with over 50 companies in the services sector, industrial companies and municipalities, county councils and regions, and we see that our offering is gaining interest and leads to continued dialogue on cooperation and potential business. Comprehensive quality measures implemented ISO 9001 certification was implemented in Finland during the quarter, which will contribute to a more efficient organisation and streamlined sales in several markets. Efforts are ongoing to implement the same certification in the Company s other markets. GDPR compliance has been implemented in all the Company s markets during the period, which means that the Company now complies with the general data protection regulation, the purpose of which is to strengthen the protection for natural persons in the processing of personal data within the EU. New processes and sales methods During the period, a plan has been defined for how technology and service development processes will be developed for customers in the future. Processes have been documented for efficiently linking the Company s HealthManager with future customers own payroll and employee-absence systems. Based on the Company s defined development processes, a new sales model and method have also been developed at the Group level, where a sales team has been trained to cultivate the Company s market. The production environment for all processes has been moved during the period to Amazon. Significant events after the period On 17 October, Aino Health participated in the 600 Minutes Human Resources event in Munich. In addition to the fact that Jyrki Eklund was asked to make a keynote presentation with the theme Health as a business case, we had 18 meetings with companies seeking a more thorough insight into what Aino can provide for them. The interest was significant, and follow-up meetings with in-depth dialogue with companies are continuing in the fourth quarter. The new service Business Health index (BHi) service has been introduced, initially on the Finnish market. BHi is a computer-driven tool for HR to drive systematic and continuous change for increasing productivity. Other information The Company has capitalised TSEK 695 in product development expenses. The Finnish subsidiary accounted for the Aino Group s entire reported turnover during the period. The Company or Aino Health refers to Aino Health AB, corporate registration number AINO HEALTH AB Q3 QUARTERLY REPORT

8 Business Health index a new tool for increasing business productivity Aino Health s new service, Business Health index (BHi), is a computer-driven tool for HR to drive systematic and continuous change in employee commitment, productivity and profitability. BHi has been introduced, initially on the Finnish market, and was launched there on 24 October. BHi has been developed to, through strategic methods, gauge the pulse of an organisation to assess its health and well-being so that HR work generates measurable results and presents solutions to problems. In addition to being able to compare businesses and industry partners, BHi also provides HR and a strategic roadmap that describes improvement areas that directly affect the organisation and its productivity. Corporate Health Management is not a project it is a long-term strategic effort for the process of change whereby the results are measurable based on data and business intelligence. Corporate Health Management is today the most effective and fastest growing area in organisations for increasing productivity. BHi is the first product on the market that contains all aspects regarding the well-being of employees, sickness absence and potential risks for long-term absence: BHi presents an overall picture of the organisation s management regarding health and analyses strengths and weaknesses as well as how Corporate Health Management can be tailored to business goals. Illustrates the organisation s level of productivity and provides guidance for best practices in the industry Provides structure and indicates necessary measures, which shows which priorities provide systematic improvement in productivity Estimates the financial benefits through structured Corporate Health Management work in the company/organisation, which is a prerequisite for making well-informed decisions Aino s Business Health index also covers leadership issues and methods for employee well-being and commitment: Well-being at the organisational and employee level Tools for Corporate Health Management, management of policies and processes Management of stakeholders Work environment matters Absence Mental illness Early retirement AINO HEALTH AB Q3 QUARTERLY REPORT

9 Development for the Group during Q3 2017, in figures About the report This Interim Report covers the period from 1 January to 30 September. Accounting principles The Company applies the Swedish Annual Reports Act and the Swedish Accounting Standards Board s general guideline BFNAR 2012:1 (K3) in preparing its financial reports. The Company has capitalised TSEK 695 in product development expenses. Other expenses for product development do not meet the criteria for capitalisation and have thus been expensed. Principles for preparing the report The Interim Report has not been reviewed by the Company s auditors. Turnover Consolidated net turnover in the third quarter amounted to TSEK 4,352. All net turnover came from Finland. Sales during the quarter were affected by a normal seasonal variation, resulting in slightly lower income during the period. Profit/loss The Group s profit/loss during the second quarter amounted to TSEK -9,186. Profit/loss was affected by organizational changes in Sweden and lower turnover. Equity ratio The Group s equity ratio calculated as equity s share of the balance sheet total amounted to 77.9 percent as of 30 September Cash flow and investments Cash flow amounted to TSEK -9,714 for the third quarter. Operating activities had an effect of TSEK -7,037 on cash flow. Cash flow for operating activities was at approximately the same level as in the second quarter. Investment in Maresan Oy s equity and product development had a total effect of TSEK -2,707 on cash flow for investing activities. The share Aino Health s share is listed on the NASDAQ First North, ticker AINO. The total number of shares at the beginning of the period, 1 July 2017, was 5,422,770 and the number of shares at the end of the period, 30 September 2017, was 5,422,770. Dilution of the share has not occurred during the period. Options Aino Health AB and its direct and indirect subsidiaries have issued no options. Related-party transactions In addition to salaries and other remuneration to the management as well as Board fees, as resolved at the Annual General Meeting, no transactions have been made with the Board that concern related parties. AINO HEALTH AB Q3 QUARTERLY REPORT

10 The ten largest shareholders as of 30 September 2017 Eklund Jyrki 1,306, % The Orange Company Oy 496, % Saxelin Jochen 319, % Rahikainen Hannu 240, % 4P Holdings Limited 182, % Wexito 4 AB 182, % MyVision Oy 78, % Berger Gunvald 77, % Frame Invest 75, % Fahlin Johan 73, % Other 2,389, % Total Source: Euroclear 29 September 2017 Certified Adviser Erik Penser Bank AB Future reports 2017 Year-end report 23 February 2018 Annual Accounts 10 April ,422, % Risks and uncertainty factors The Board of Aino Health considers the most significant risks to be connected with the Company s relatively new services. This entails that it could take time to gain customers acceptance and make a breakthrough in the market. Aino Health may need to acquire further capital in future. There is a risk that the Company might not be able to acquire further capital or enter into partnerships or other co-financing. The loss of key personnel could have negative consequences. There are also a number of risks that are not dependent on Aino Health. The Board s assurance The Board of Directors and the CEO certify that this Interim Report gives a true and fair view of the Company s operations, position and results and describes the material risks and uncertainties facing the Company. Stockholm, 10 November 2017 Aino Health AB The Board Liselotte Engstam, Chairman Jyrki Eklund, CEO and Board member Per-Olof Schroeder, Board member Liselotte Bergmark, Board member AINO HEALTH AB Q3 QUARTERLY REPORT

11 The current group was formed on 19 September The comparison period covers only 10 days. For this reason, we estimate that comparative data relating to the consolidated income statement is of insignificant nature. Summary consolidated income statement Amounts in KSEK 1 July - 30 Sept 1 Jan - 30 Sept Net sales 4,352 13,505 Other operating income Operating expenses Consulting services purchased ,429 Other external expenses -3,030-10,646 Personnel expenses -9,686-21,972 Depreciation/amortisation of tangible and intangible assets ,419 Other operating expenses Operating earnings -9,221-23,083 Net interest income 1-44 Earnings after financial items -9,220-23,127 Appropriations 0 0 Taxes 34 0 Profit/loss for the period -9,186-23,127 Summary consolidated balance sheet Amounts in KSEK 30 Sep 30 Sep 31 Dec ASSETS Fixed assets Intangible fixed assets 15,967 16,944 16,544 Tangible fixed assets Financial fixed assets 1, Total fixed assets 18,327 17,482 17,039 Current assets Inventories etc Current receivables 3,696 4,250 7,078 Cash and bank balances 15,974 1,708 38,887 Total current assets 20,014 6,481 46,309 TOTAL ASSETS 38,341 23,963 63,348 EQUITY AND LIABILITIES Shareholders equity Share capital 13,557 9,057 13,557 Other capital contributions 45,814 7,907 45,810 Other equity, including profit/loss for the year -29, ,037 Total shareholders equity 29,876 16,231 53,330 Liabilities Non-current liabilities 1, Current liabilities 7,456 5,868 9,429 Total liabilities 8,465 7,732 10,018 TOTAL EQUITY AND LIABILITIES 38,341 23,963 63,348 AINO HEALTH AB Q3 QUARTERLY REPORT

12 Summary change in consolidated equity July - 30 Sept 1 Jan - 30 Sept 1 July - 30 Sept 19 May - 30 Sept Amount at start of period 39,064 53, New formation Non-cash issue ,964 16,964 Translation difference Redemption Adjusted acquisition analysis Profit/loss for the period -9,186-23, Amount at end of period 29,876 29,876 16,231 16,231 Summary consolidated cash flow statement Amounts in KSEK 1 July - 30 Sept 1 Jan - 30 Sept 1 July - 30 Sept Cash flow from operating activities -7,037-19, Cash flow from investing activities -2,707-2, Cash flow from financing activities ,864 Cash flow for the period -9,714-22,914 1,708 Cash and cash equivalents at start of period 25,705 38,887 0 Exchange rate difference in cash and cash equivalents Cash and cash equivalents at end of period 15,974 15,974 1,708 The company was founded in May 2016 Summary Parent Company income statement Amounts in KSEK 1 July - 30 Sept 1 Jan - 30 Sept 1 July - 30 Sept 19 May - 30 Sept Net sales Other operating income Operating expenses Consulting services purchased -1,872-10, Other external expenses -1,306-3, Personnel expenses -1,851-4, Other operating expenses Operating earnings -5,049-18, Net interest income Earnings after financial items -5,049-18, Taxes Profit/loss for the period -5,049-18, AINO HEALTH AB Q3 QUARTERLY REPORT

13 Summary Parent Company balance sheet Amounts in KSEK 30 Sep 30 Sep 31 Dec ASSETS Fixed assets Intangible fixed assets Financial fixed assets 18,404 18,164 18,164 Total fixed assets 19,099 18,164 18,164 Current assets Current receivables 6, ,475 Cash and bank balances 15, ,891 Total current assets 21, ,366 TOTAL ASSETS 40,456 18,164 57,530 EQUITY AND LIABILITIES Shareholders equity Restricted equity Share capital 13,557 9,057 13,557 Development expenditure fund Non-restricted equity Share premium reserve 45,810 7,907 45,810 Profit/loss brought forward including profit/ loss for the year -22, ,895 Total shareholders equity 37,320 16,237 56,472 Current liabilities 3,136 1,927 1,058 Total liabilities 3,136 1,927 1,058 TOTAL EQUITY AND LIABILITIES 40,456 18,164 57,530 Summary Parent Company change in equity July - 30 Sept 1 Jan - 30 Sept 1 July - 30 Sept 19 May - 30 Sept Amount at start of period 42,369 56, Formation Reduction of share capital, for payment Non-cash issue ,964 16,964 Adjusted acquisition analysis Profit/loss for the period -5,049-18, Amount at end of period 37,320 37,320 16,237 16,237 AINO HEALTH AB Q3 QUARTERLY REPORT

14 Summary Parent Company cash flow statement Amounts in KSEK 1 July - 30 Sept 1 Jan - 30 Sept 1 July - 30 Sept 1 Jan - 30 Sept Cash flow from operating activities -6,529-21,572 1,200 1,200 Cash flow from investing activities Cash flow from financing activities ,150-1,150 Cash flow for the period -7,464-22, Cash and cash equivalents at start of period 22,553 37, Cash and cash equivalents at end of period 15,089 15, Development of share capital number of shares share capital quotient year event change total change total value 2016 Establishment ,000 50, Share split 4:1 1,500 2,000-50, Non-cash issue 362, ,277 9,056,925 9,106, Redemption -2, ,277-50,000 9,056, Share split 10:1 3,260,493 3,622,770-9,056, New issue 1,800,000 5,422,770 4,500,000 13,556, Key figures Amounts in KSEK 1 July - 30 Sept 1 Jan - 30 Sept Financial key figures Net sales 4,352 13,505 Earnings after financial items -9,220-23,127 Return on equity (%) -30.9% -77.4% Shareholders equity per share, SEK Equity ratio, % 77.9% 77.9% Number of shares at end of the period 5,422,770 5,422,770 Weighted number of shares during the period 5,422,770 5,422,770 Earnings per share after dilution, SEK Earnings per share before dilution, SEK AINO HEALTH AB Q3 QUARTERLY REPORT

15 AINO HEALTH AB Q3 QUARTERLY REPORT

16 Aino Health AB (publ) Skeppargatan Stockholm Phone ainohealth.com info@ainohealth.com