Full year report January December 2016

Transcription

1 Full year report January December 2016 Telephone conference February 10, 2017 Thomas Berglund, CEO Olof Bengtsson, CFO

2 Continued positive development in Nordic and Germany France compensated for the main part of the price reduction Highlights January December 2016 Solid development: 3.3% organic sales growth 8.8% EBITA growth Capio AB (publ) % EPS growth and proposed dividend of SEK x financial leverage. Net debt at MSEK 2,872 Continued strong result growth in Nordic and Germany driven by organic sales growth and productivity improvements Strong volume growth and productivity improvements compensated for the main part of the French price reduction in Lower final yearly price reimbursement than expected and some minor strike effects impacted the fourth quarter Increased acquisition activity new entry into Denmark and acquisition of 11 primary care centers in the West of Sweden adding yearly sales of MSEK >700 Increased acquisition activity

3 Group financial development Capio Group OCT - DEC JAN - DEC , % , % Net sales 3, ,069 13, Organic sales growth, % Operating result (EBITDA) ,061 1, Margin, % Operating result (EBITA) Margin, % Adj. profit for the period Adj. EPS after dilution, SEK Net capital expenditures In % of net sales Net debt 2,872 2,936 2,872 2,936 Financial leverage Organic sales growth from volume growth and a higher case mix as overall price increases were limited Continued result and margin improvement in Nordic and Germany driven by productivity improvements. France compensated for the main part of price reduction in Slightly lower full year margin than expected in France on the lower final yearly price reimbursement and some minor strike effects in the fourth quarter Adj. profit improved from the higher operating result, improved finance net and a lower effective income tax rate 12% for the full year Net capex in 2016 at 3.3%, impacted by timing of expansion projects and divestments Capio AB (publ) 3

4 Implementation of the Modern Medicine strategy resulting in improved AVLOS OCT - DEC FULL YEAR AVLOS by segment, Days % % 2014 % 2013 % Capio Nordic Capio Nordic excl. geriatrics Capio France Capio Germany Capio Group Capio Group excl. geriatrics Full year AVLOS (Average Length Of Stay) improvement in all segments The positive AVLOS trend continued in France driven by improvements in many specialties AVLOS in Q4 impacted by a higher case mix and growth of treatments with longer stays excluding geriatrics, the AVLOS reduction for the Group was -0.2% (-3.4% for the full year) Nordic impacted by an earlier and heavier flu than last year in the fourth quarter Continued AVLOS reduction in 2016 Capio AB (publ) 4

5 France Modern Medicine and Rapid Recovery reducing AVLOS Capio France hip and knee prosthesis surgery Number of in- and outpatients % 7,000 6, ,305 6,000 5,949 5,529 5, ,000 4, ,066 4, ,000 2,000 1,000 0 Provided in day care: Number Discharged, % <= 4 days AVLOS development hip and knee replacements Number of procedures Days , % 11-15, % 11-16, % Capio France The French market Capio Sweden The Swedish market Capio growth of hip and knee replacements well above market growth Continued significant AVLOS reduction for hip and knee replacements also in % more patients discharged within four days in 2016 compared with 2015 Total AVLOS reduction from 2011 to 2016 was -45% for Capio France Steady growth in the number of procedures performed in day care Source: French market data; Scansanté (ATIH), Swedish market data; Socialstyrelsen Capio AB (publ) 5 Rapid Recovery strategy continues to deliver

6 ehealth is a growing part of the future I need help! Patient medical story Digital documentation of medical story. Supported by questions/algorithms Triage Different time Same time Same time Self care Different place Different place Same place Acute hospital/ Specialist DIGIPHYSICAL HEALTHCARE Agreement with Doctrin, a Swedish provider of e-health solutions. Capio has acquired a minority share to support further development Capio AB (publ) 6

7 Segment Capio Nordic Capio Nordic OCT - DEC JAN - DEC , % , % Net sales 2,009 1, ,584 7, Organic sales growth, % Operating result (EBITDA) Margin, % Operating result (EBITA) Margin, % Net capital expenditures In % of net sales Improved performance in Proximity Care, positively impacted by the ongoing productivity program Strong organic sales growth in S:t Göran new increased A&E and transfer of patients from the down-sized New Karolinska Hospital and also in the geriatric business in Stockholm Acquisitions in Norway Q contributed positively Focus on Modern Management to drive patient time and productivity Net capex in 2016 impacted by the new A&E at Capio S:t Göran Solid net sales and result growth Capio AB (publ) 7

8 Nordic Acquisition of CFR Hospitaler and Backa Läkarhus Denmark added to our Nordic platform (Net sales of MDKK 288) - Same demographic drivers as in the rest of Europe - Increased pressure on publicly produced healthcare - Increasing waiting times Capio s focus is on expanding work for the public sector Backa Läkarhus added to Capio Proximity Care in Sweden (Net sales of MSEK 370) - 11 primary care centers (incl. nine rehabilitation centers) and one light A&E center added to the west of Sweden strengthens market leadership - now a total of more than 750,000 listed patients in Sweden Strong base for digitalization Acquisitions will contribute positively to group margin development Continued focus on acquisition activity Capio AB (publ) 8

9 Segment Capio France Capio France OCT - DEC JAN - DEC , % , % Net sales 1,394 1, ,313 5, Organic sales growth, % Operating result (EBITDA) Margin, % Operating result (EBITA) Margin, % Net capital expenditures In % of net sales Capio AB (publ) 9 Continued good volume development in all seven regions with a total patient growth of 6.5% in 2016 Organic sales growth and result was impacted by a price effect of MSEK -87 in 2016 of which the main part was compensated for by volume growth and productivity improvements. Lower than expected final yearly price reimbursements in 2016 and some minor strike effects impacted the fourth quarter Actions related to FTE reorganizations (productivity), business development combined with efficient procurement continue Net capex impacted by expansion projects and divestments Continuing development of Modern medicine and Rapid Recovery

10 Segment Capio Germany Capio Germany OCT - DEC JAN - DEC , % , % Net sales ,172 1, Organic sales growth, % Operating result (EBITDA) Margin, % Operating result (EBITA) Margin, % Net capital expenditures In % of net sales Outpatient growth, driven by the introduction of new medical specialties, and pricing support organic sales growth in 2016 Total sales growth impacted by the divestment in Q Result driven by volume growth and productivity improvements Net capex in 2016 and 2015 impacted by the ongoing construction project at one of the general hospitals estimated to be fully completed during Q Capio AB (publ) 10 Increased focus on Modern Medicine drives AVLOS reduction

11 Cash flow OCT - DEC JAN - DEC Capio Group Net debt opening -3,149-3,231-2,936-3,440 Operating result (EBITA) Capital expenditure Divestments of fixed assets Net capital expenditure In % of net sales Add-back depreciation Net investments Change in working capital Operating cash flow Cash conversion, % Free cash flow after financial items and tax Cash conversion, % Net capex at 3.3% in 2016 impacted by investments related to the new A&E at Capio S:t Göran and expansion projects in France. Some planned divestments of non-core assets in 2016 delayed until 2017, whilst 2015 included divestments of non-core assets (MSEK 41) Working capital impacted by higher net customer receivables in December 2016 compared to 2015 (higher sales). Cash flow was impacted by a change in timing of payments of social security charges in France (from monthly to quarterly payments) Financial items positively impacted by lower net debt and interest rates whilst higher tax installments in France impact the opposite way Cash flow impacted by timing effects Capio AB (publ) 11

12 Capital employed & financing Capio Group 31 Dec 31 Dec Operating capital employed 1,554 1,388 In % of net sales Other capital employed 6,790 6,549 Capital employed 8,344 7,937 Return on capital employed, % Net debt 2,872 2,936 Financial leverage Equity 5,472 5,001 Financing 8,344 7,937 Net debt and financial leverage MSEK 4,000 3,500 3,000 2,500 2,000 Q4 Q1 Q2 Q3 Q Net debt Financial leverage x Capio AB (publ) 12 Operating capital employed above year-end 2015, mainly due to higher net capex in 2016 and higher net sales in December 2016 (impacting change in net customer receivables) and a change in the payment pattern of social contributions in France Changes in exchange rates increased capital employed and net debt compared with year-end 2015 ROCE impacted by the increased EBITA in 2016 Financial leverage at 2.7x impacted by positive net cash flow (including dividend paid of MSEK 71) and the improved EBITDA in 2016 Solid financial position ready for more acquisitions

13 Financial targets Net sales and organic sales growth (RTM) Operating result (EBITDA) and margin (RTM) Net capital expenditure and in % of sales (RTM) MSEK % 15,000 5 MSEK % 1,100 9 MSEK % , , , , , ,000 Q4 Q1 Q2 Q3 Q Q4 Q1 Q2 Q3 Q4 4 0 Q4 Q1 Q2 Q3 Q Net sales Organic sales growth, % Operating result (EBITDA) Operating margin (EBITDA), % Net capital expenditure In % of sales Net sales growth The target is to grow organically at least in line with the market and add acquisition growth at least at a similar rate over time Operating result (EBITDA) The target is to grow operating result at a higher rate than sales growth through increased productivity and operational leverage Net capital expenditure The target with present business mix is to keep net capex around 3% of net sales per year including Modern Medicine and expansion related capex Organic sales growth above or in line with market growth limited acquisition growth in Two acquisitions recently announced increasing the speed of growth in 2017 Operational leverage from volume and productivity improvements increase margins Net capex in 2016 well in line with target considering timing of divestments Capio AB (publ) 13

14 Earnings per share and proposed dividend Dividend policy Capio targets annual dividends that over time reflect a payout ratio of ~30 percent of the Group s earnings after tax per year, allowing for a meaningful reinvestment in the business. Decisions relating to dividend proposals take into account Capio s future revenue, financial position, capital requirements, business opportunities and the situation for the Group in general. Capio Group JAN - DEC , % Earnings per share after dilution 1, SEK Proposed dividend per share, SEK PROPOSED DIVIDEND SEK Attributable to parent company shareholders. EPS increase from the improved operating result and finance net combined with a lower effective income tax rate The proposed dividend is corresponding to 31% of earnings after tax For 2017, Capio estimates the effective income tax rate to be in the range of 15-20% Capio AB (publ) 14

15 Financial calendar Capio annual report 2016 available in April 2017 Interim report January March 2017 due May 3, 2017 Annual General Meeting 2017 on May 3, 2017 at 16:00 CET (Chalmers Kårhus, Gothenburg, Sweden) Capio AB (publ) 15

16 Questions and Answers Capio AB (publ) 16

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