Q2 April June August 2016

Transcription

1 Q2 April June August 216

2 Underlying market and current trends Business area Market outlook per segment Individual & Family Underlying market growth and demand continuously strong in I&F segments Number of asylum seekers (including unaccompanied minors) down significantly in Sweden and the Nordics Personal Assistance Maintained assessment of continued challenging market conditions Emerging consolidation potential Elderly Care Many municipalities struggle with meeting demand for elderly care services Increasing demand for own managed elderly care homes Other Nordics Strong demand in most segments (own managed services) in Finland and Norway Continued strong momentum in personal assistance in Norway Politics Continued uncertainty regarding the Swedish welfare (Reepalu-) investigation. Results to be presented in November Work on the SOTE reform continues and our assessment is that the reform will be positive for private providers in Finland 2

3 Q2 and six-month period financial highlights Key highlights Revenue Q2 Operating revenue grew 11% to SEK 1,534m (1,379) Organic growth in the quarter 1.5% (4.4), in constant currency 2.% (4.3) Six-month period Operating revenue grew 1% to SEK 3,5m (2,73) Organic growth in the period 2.3% (1.4) in constant currency 2.9% (1.4) Operating profit Q2 Operating profit (EBIT) of SEK 56m (24) Operating margin 3.7% (1.7) Six-month period Operating profit (EBIT) of SEK 98m (18) Operating margin 3.3% (4.) Adjusted operating profit Q2 Adjusted for non-recurring IPO costs of SEK 2m, EBIT of SEK 58m (56) Adjusted operating margin at 3.8% (4.1) Six-month period Adjusted for non-recurring IPO costs of SEK 4m, EBIT of SEK 137m (142) Adjusted operating margin at 4.6% (5.2) 3

4 Q2 business highlights Strong revenue growth due to both acquisitions and organic growth Mainly driven by Individual & Family growing with 23% and Other Nordics reporting a growth of 65% Humana enters into Finland and strengthens position in Norway through two acquisitions, Arjessa in Finland and KOA in Norway The acquisitions contribute to revenue and profit during the month of June Strong revenue and profitability development for the business area Other Nordics Investments for future growth High M&A activities in the quarter results in increased acquisition costs of SEK 15m Continued challenging market conditions within Personal Assistance An increase in the standard state allowance by 1.4%, however larger increase in salary costs Higher social security costs for <25 yr of age now fully implemented Continued harsher assessment from the Swedish Social Insurance Agency (Försäkringskassan) Positive effects from efficiency program compensates for a substantial part of cost increase Increased revenue in Elderly Care Revenue increased despite divesture of three Home care operations to Attendo Two additional full responsibility elderly homes contracted and continued good momentum 4

5 Humana enters Finland and strengthens position in Norway Enters into Finland through the acquisition of Arjessa, a leading provider of full responsibility psychosocial care! In line with Humana s strategy to widen and expand its market leading position within the care market throughout the Nordic region! An excellent platform for continued expansion in Finland! Operating in one of Humana s core segments full responsibility Individual & Family care! Good fit both from an operational as well as cultural perspective management that shares Humana s core values and wants to stay and develop operations together with Humana Strengthens its position in Norway through acquisition of KOA Group! A stronger geographical presence in Norway! An extended offer, primarily in special housing services (HOT) and adult psychiatry! Expertise in migration-related services The acquisitions will have a positive contribution on revenues and earnings per share during 216 5

6 Continued focus on operations and competence development Launch of the Humana Academy The Humana Academy will lead the Groups efforts within education/training as well as R&D Ambition: to strengthen industry competence development qualified education both internally and externally to be an active partner in various research projects >1 different trainings offered, >3, trainings completed in 215, ongoing research projects together with the Universities of Lund, Gothenburg and Örebro and the Simon Frazer University in Canada Humana Quality Report for 215 Describes our services, how we work with quality, continuous improvements and comparisons Ambition: to contribute to a positive development of quality work in the industry Where national comparisons are possible Humana shows consistently good results 6

7 Humana Q2 - Operating revenue 1,379 Operating revenue +11% 1,534 Comments Operating revenue increased by 11% to SEK 1,534m, an increase of SEK 155m, driven by Individual & Family and Other Nordics organic growth of 1.5% organic growth at constant currency of 2.% Acquisitions contributed with SEK 144m to revenue Villa Skaar (now divested) included with SEK 8m in Q2 215 Organic contribution to net sales of 2m Q2 215 Q

8 Humana six-month period - Operating revenue Operating revenue Comments 2,73 +1% 3,5 Operating revenue increased by 1% to SEK 3,5m, an increase of SEK 275m, driven by Individual & Family and Other Nordics organic growth of 2.3% organic growth at constant currency of 2.9% Acquisitions contributed with SEK 232m to revenue Villa Skaar (now divested) included with SEK 2m in Q2 215 Organic contribution to revenue of 64m 6M 215 6M 216 8

9 Humana Q2 - Operating profit Operating profit (EBIT) Comments % % % 4 2 EBIT EBIT-margin Operating profit increased to SEK 56m (24 incl. SEK 32m from divesture of Villa Skaar). Acquisitions contributed with SEK 17m. Operating profit margin of 3.7% (1.7) Impact from: 8 Q2 215 Q2 216 Adj. EBIT and Adj. EBIT-margin % 6 cost of acquisitions SEK 15m higher social security costs for young employees <25 yr of age, SEK 19m higher rental costs (sale and lease back) SEK 5m % 3.8% 4 2 Adj. EBIT Adj. EBIT-margin Adj. EBIT SEK 58m (56), an adj. EBIT-margin of 3.8% (4.1), SEK 2m in additional IPO costs included (32m in capital loss from sale of Villa Skaar). 1 Q2 215 Q

10 Humana six-month period - Operating profit Operating profit (EBIT) Comments 12 4.% % % 4 Operating profit increased to SEK 98m (18 incl. Villa Skaar) Acquisitions contributed with SEK 27m M 215 6M EBIT EBIT-margin Operating profit margin of 3.3% (4.) Impact from: cost of IPO SEK 4m cost of acquisitions SEK 15m 2 Adj. EBIT and Adj. EBIT-margin % 6 5.2% higher social security costs for young employees <25 yr of age, SEK 3m higher rental costs (sale and lease back) SEK 9m % 1 6M 215 6M Adj. EBIT Adj. EBIT-margin Adj. EBIT SEK 137m (142), an adj. EBIT-margin of 4.6% (5.2), SEK 4m in IPO costs in 6M 216 (SEK 32m in capital loss from sale of Villa Skaar and SEK 2m in cost of financing) 1

11 Individual & Family Q2 Operating revenue Comments % 511 Operating revenue increased by 23% driven by 24% more clients organic growth of 6.2% Q2 215 Q2 216 Operating profit was in line with last year at SEK 43m (43) Operating profit 5 1.4% % Q2 215 Q % EBIT EBIT-margin Margin decreased from 1.4% in Q2 215 to 8.4% in Q2 216 Average high expansion higher rental costs of SEK 4m Q2 215 Q /-% Clients 1,587 1, Employees 1,743 2, M 216 Operating revenues 6M 1,19m (821), +24% Operating profit 6M SEK 98m (9), +9%, operating margin 8.4% (1.4) 11

12 Personal Assistance Q2 Operating revenue Comments % Operating revenue decreased by 2% explained by: fewer clients compared with last year 4 tougher market conditions Q2 215 Q2 216 Operating profit % 4.9% 33 % 6 4 Operating profit increased to SEK 35m (33), operating margin improved to 5.4% (4.9) primarily due to positive effects from ongoing efficiency program higher costs for increased social security costs SEK 15m higher cost increases in personnel cost than reimbursement levels 2 EBIT 1 2 EBIT-margin Average Q2 215 Q /-% Q2 215 Q M 216 Operating revenues 6M 1,323m (1,328), +/-% Clients 1,95 1, Employees 5,198 5, Operating profit 6M SEK 74m (81), -1%, operating margin 5.6% (6.1) 12

13 Elderly Care Q2 Operating revenue Comments % 186 Operating revenue increased by 2% in Q2 216 positive effect from opening for elderly care home in Gävle negatively impacted by transfer of three home care units impacting SEK 16m to revenues Q2 215 Q Operating profit Q2 215 Q %, -1, -2, EBIT Operating profit SEK -5m (-8) Margin -2.9% (-4.4) impacted by higher social security costs % -3, -4, EBIT-margin Average Q2 215 Q /-% % -5, Clients 3,436 3, Employees 1,587 1, M 216 Operating revenues 6M 369m (367), +/-% Operating profit 6M SEK -11m (-9), operating margin -3.% (-2.3) 13

14 Other Nordics Q2 Operating revenue Comments % 182 Operating revenue increased 65% to SEK 182m (11), primarily driven by acquisition of KOA and Arjessa in Finland Organic growth at constant currency of 12.8% Q2 215 Q Operating profit 9.7% 18 Q2 215 Q % % EBIT EBIT-margin Operating profit SEK 18m (-28 includes a capital loss from sale of Villa Skaar of SEK 32m) Margin increased to 9.7% (-25.2) Average Q2 215 Q /-% Clients Employees M 216 Operating revenues 6M 294m (214), +38% Operating profit 6M SEK 22m (-23), operating margin 7.5% (-1.8) 14

15 Central costs/other Costs Q2 215 Q2 216 Total other costs IPO (P&L impact) - 2 Central overhead costs Breakdown of central costs/other Cost for acquisitions - 15 Costs 6M 215 6M 216 Total other costs IPO (P&L impact) - 4 Central overhead costs 3 31 Cost for acquisitions - 15 Cost for refinancing 2 - Comments Central costs/other increased from SEK 16m in Q2 215 to SEK 34m in Q SEK 2m in costs in conjunction with IPO underlying central overhead costs Q2 216 SEK 17m (16), an increase of 6% Costs in conjunctions with acquisitions made in Q2 216 of SEK 15m () 15

16 Financial targets Revenue growth Annual growth rate in the medium term of 8-1 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.x Leverage may however temporarily, for example in relation to acquisitions, exceed the target level Dividend policy 3 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 16

17 Q & A

18 Appendix

19 Consolidated income statement Apr-Jun Apr-Jun Jan-Jun Jan-Jun Jul-JunJan-Dec SEK M / Net revenue Other revenue Operating revenue Other external costs Personnel costs Depreciation Impairment of goodwill Other operating costs Operating costs Operating profit Financial revenue Financial costs Unrealised changes in value of derivatives Profit before tax Income tax Net profit for the period Of which, attributable to: Owners of the Parent Company Net profit for the period Earnings per common share, SEK, before dilution,67-1,8 -,4 -,15,7,61 Earnings per common share, SEK, after dilution,67-1,8 -,4 -,15,7,61 Average number of common shares, thousands

20 Key ratios Apr-Jun Apr-Jun Jan-Jun Jan-Jun Jul-Jun Jan-Dec / Operating revenue EBIT, % 3,7% 1,7% 3,2% 4,% 5,1% 5,5% Interest-bearing net debt, SEK M Return on capital employed, % 1,8%,9% 3,2% 4,1% 9,4% 11,3% Equity/assets ratio, % 35,1% 28,% 35,1% 28,% 35,1% 28,5% Operating cash flow Interest-bearing net debt/adjusted EBITDA 12 months, times 3,1x 4,x 3,1x 4,x 3,1x 3,x 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 common shares on the closing date, s Equity per common share, SEK

21 Consolidated balance sheet Jun 3 Jun 3 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 Deferred tax liabilities Interest-bearing 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 Apr-Jun Apr-Jun Jan-Jun Jan-Jun Jul-Jun Jan-Dec SEK M / Profit before tax Adjustment for: Depreciation and impairment Financial items, net Other non-cash items Cash flow from operating activities before changes in working capital Changes in working capital Cash flow from operating activities Financial items, net Income tax paid Cash flow from operating activities, net Acquisition of operations, net cash impact Sales of operations, net cash impact Investments in other non-current assets, net Cash flow from investing activities Proceeds from new borrowings Repayment of borrowings 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 Exchange rate difference in cash/cash equivalents Cash and cash equivalents at end of period

23 Segment financials Operating revenue by business area Apr-Jun Apr-Jun Jan-Jun Jan-Jun Jul-Jun Jan-Dec SEK M % % 215/ % Individual & Family % % % Personal Assistance % % % Elderly Care % % % Other Nordics % % % Total operating revenue % % % Organic revenue growth by business area 1) Apr-Jun Apr-Jun Jan-Jun Jan-Jun Jul-Jun Jan-Dec % / Individual & Family 6,2% 16,4% 7,3% 4,5% 9,9% 3,5% Personal Assistance -2,3% 4,% -,4% 3,6% 1,1% 3,1% Elderly Care 2) 3) 1,8% -13,5%,4% -1,4% -5,7% -1,7% Other Nordics 6,3% -6,% 3,7% n/a 9,% n/a Total organic growth, group currency 1,5% 4,4% 2,3% 1,4% 3,2%,8% Other Nordics, local currency 12,8% -6,% 11,7% n/a 12,2% n/a Total organic growth, constant currency rate 2,% 4,3% 2,9% 1,4% 3,5%,8% Operating profit per business area Apr-Jun Apr-Jun Jan-Jun Jan-Jun Jul-Jun Jan-Dec SEK M % % 215/ % Individual & Family % % % Personal Assistance % % % Elderly Care 4) -5-8 n/a n/a n/a Other Nordics 5) n/a n/a n/a Central costs/other 6) n/a n/a n/a Total Operating profit % % % 23