Q2 April June 216 19 August 216
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
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
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
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
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 http://www.humana.se/om-oss/kvalitet/kvalitetsredovisning/ 6
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 Q2 216 7
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
Humana Q2 - Operating profit Operating profit (EBIT) Comments 6 4 2 24 1.7% 56 3.7% % 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 6 4 2 56 58 4.1% 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 Q2 216 9
Humana six-month period - Operating profit Operating profit (EBIT) Comments 12 4.% 18 3.3% % 4 Operating profit increased to SEK 98m (18 incl. Villa Skaar) Acquisitions contributed with SEK 27m 1 8 98 6M 215 6M 216 2 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 15 1 5 142 137 4.6% 1 6M 215 6M 216 4 2 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
Individual & Family Q2 Operating revenue Comments 6 5 4 415 +23% 511 Operating revenue increased by 23% driven by 24% more clients organic growth of 6.2% 3 2 1 Q2 215 Q2 216 Operating profit was in line with last year at SEK 43m (43) Operating profit 5 1.4% 43 43 4 8.4% 3 2 1 Q2 215 Q2 216 12 1 8 6 4 2 % 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 Q2 216 +/-% Clients 1,587 1,969 +24.1 Employees 1,743 2,123 +21.8 6M 216 Operating revenues 6M 1,19m (821), +24% Operating profit 6M SEK 98m (9), +9%, operating margin 8.4% (1.4) 11
Personal Assistance Q2 Operating revenue Comments 8 6 671 656-2% Operating revenue decreased by 2% explained by: fewer clients compared with last year 4 tougher market conditions 2 4 3 Q2 215 Q2 216 Operating profit 35 5.4% 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 Q2 216 +/-% Q2 215 Q2 216 6M 216 Operating revenues 6M 1,323m (1,328), +/-% Clients 1,95 1,99-2.1 Employees 5,198 5,113-1.6 Operating profit 6M SEK 74m (81), -1%, operating margin 5.6% (6.1) 12
Elderly Care Q2 Operating revenue Comments 183 +2% 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 Q2 216-2 -4 Operating profit Q2 215 Q2 216-5 %, -1, -2, EBIT Operating profit SEK -5m (-8) Margin -2.9% (-4.4) impacted by higher social security costs -6-8 -8-2.9% -3, -4, EBIT-margin Average Q2 215 Q2 216 +/-% -1-4.4% -5, Clients 3,436 3,112-9.4 Employees 1,587 1,58-5. 6M 216 Operating revenues 6M 369m (367), +/-% Operating profit 6M SEK -11m (-9), operating margin -3.% (-2.3) 13
Other Nordics Q2 Operating revenue Comments 11 +65% 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 Q2 216 4 2-2 -4 Operating profit 9.7% 18 Q2 215 Q2 216-28 -25.2% % 12 1 8 6 4 2 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 Q2 216 +/-% Clients 21 829 +294.8 Employees 378 697 +84.4 6M 216 Operating revenues 6M 294m (214), +38% Operating profit 6M SEK 22m (-23), operating margin 7.5% (-1.8) 14
Central costs/other Costs Q2 215 Q2 216 Total other costs 16 34 IPO (P&L impact) - 2 Central overhead costs Breakdown of central costs/other 16 17 Cost for acquisitions - 15 Costs 6M 215 6M 216 Total other costs 32 86 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 Q2 216. 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
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
Q & A
Appendix
Consolidated income statement Apr-Jun Apr-Jun Jan-Jun Jan-Jun Jul-JunJan-Dec SEK M 216 215 216 215 215/16 215 Net revenue 1 534 1 379 3 5 2 73 5 868 5 593 Other revenue 62 62 Operating revenue 1 534 1 379 3 5 2 73 5 93 5 655 Other external costs -233-189 -445-372 -867-794 Personnel costs -1 216-1 121-2 387-2 195-4 622-4 43 Depreciation -11-12 -21-23 -44-46 Impairment of goodwill -36-36 Other operating costs -17-32 -55-32 -59-37 Operating costs -1 478-1 355-2 98-2 622-5 628-5 342 Operating profit 56 24 98 18 32 312 Financial revenue 2 6 6 1 Financial costs -16-28 -87-55 -24-172 Unrealised changes in value of derivatives 7 3 14 1 2 7 Profit before tax 5-1 3 54 125 149 Income tax -15-5 -1-19 -27-35 Net profit for the period 36-7 2 36 98 114 Of which, attributable to: Owners of the Parent Company 36-7 2 36 98 114 Net profit for the period 36-7 2 36 98 114 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 53 14 45 882 49 87 45 882 47 865 45 882 19
Key ratios Apr-Jun Apr-Jun Jan-Jun Jan-Jun Jul-Jun Jan-Dec 216 215 216 215 215/16 215 Operating revenue 1 534 1 379 3 5 2 73 5 93 5 655 EBIT, % 3,7% 1,7% 3,2% 4,% 5,1% 5,5% Interest-bearing net debt, SEK M 1 314 1 434 1 314 1 434 1 314 1 174 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 29 85 59 16 288 389 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 2 123 1 743 2 18 1 694 2 2 1 795 Average number full-time employees Personal Assistance 5 113 5 198 5 152 5 148 5 315 5 313 Average number full-time employees Elderly Care 1 58 1 587 1 564 1 589 1 627 1 64 Average number full-time employees Other Nordic 697 378 577 367 498 393 Average number full-time employees Central functions 18 14 18 13 16 14 Total average number full-time employees 9 459 8 921 9 419 8 811 9 458 9 154 Number of full-time employees on the closing date 9 965 9 3 9 965 9 231 9 965 9 231 Average number of customers Individual & Family 1 969 1 587 1 98 1 584 1 857 1 659 Average number of customers Personal Assistance 1 99 1 95 1 918 1 943 1 94 1 952 Average number of customers Elderly Care 3 112 3 436 3 224 3 424 3 349 3 449 Average number of customers Other Nordic 829 21 535 22 368 22 Total average number of customers 7 818 7 183 7 656 7 153 7 514 7 262 Average number of common shares on the closing date, s 53 14 45 882 49 87 45 882 47 865 45 882 Equity per common share, SEK 31 6 31 6 33 8 2
Consolidated balance sheet Jun 3 Jun 3 Dec 31 SEK M 216 215 215 Assets Non-current assets Goodwill 3 38 2 543 2 584 Other intangible assets 15 11 9 Property, plant and equipment 329 34 2 Financial assets 1 3 4 Total non-current assets 3 393 2 862 2 797 Current assets Trade receivables 53 47 44 Other current receivables 151 179 1 Cash and cash equivalents 393 27 51 Total current assets 1 73 792 1 4 TOTAL ASSETS 4 466 3 654 3 838 Equity and liabilities Equity Share capital 1 1 1 Additional paid-in capital 1 91 642 642 Retained earnings 476 38 45 Equity attributable to owners of the parent company 1 567 1 23 1 93 Non-current liabilities Deferred tax liabilities 7 56 66 Interest-bearing liabilities 1 392 1 558 1 55 Total non-current liabilities 1 462 1 614 1 616 Current liabilities Interest-bearing liabilities 315 83 125 Trade payables 1 56 79 Other current liabilities 1 22 879 925 Total current liabilities 1 437 1 17 1 129 TOTAL EQUITY AND LIABILITIES 4 466 3 654 3 838 21
Consolidated cash flow statement Apr-Jun Apr-Jun Jan-Jun Jan-Jun Jul-Jun Jan-Dec SEK M 216 215 216 215 215/16 215 Profit before tax 5-1 3 54 125 149 Adjustment for: Depreciation and impairment 11 12 21 23 8 82 Financial items, net 6 25 68 54 177 163 Other non-cash items 3-3 -27 Cash flow from operating activities before changes in working capital 68 36 119 134 352 367 Changes in working capital 55-5 42-9 38 Cash flow from operating activities 68 91 114 176 343 45 Financial items, net -1-23 -54-49 -15-1 Income tax paid -27-8 -52-49 -34-31 Cash flow from operating activities, net 31 6 7 78 24 274 Acquisition of operations, net cash impact -425-25 -442-25 -558-141 Sales of operations, net cash impact 11 11 25 261 Investments in other non-current assets, net -38-6 -55-13 -85-43 Cash flow from investing activities -463-2 -497-27 -393 77 Proceeds from new borrowings 232 27 1 619 27 3 231 1 639 Repayment of borrowings -37-13 -1 678-115 -3 295-1 732 New share issue 442 442 Cash flow from financing activities 195-76 383-88 378-93 Cash flow for the period -237-36 -16-36 189 258 Cash and cash equivalents at start of period 631 244 51 244 27 244 Cash flow for the period -237-36 -16-36 189 258 Exchange rate difference in cash/cash equivalents -2-2 -2-1 -3-2 Cash and cash equivalents at end of period 393 27 393 27 393 51 22
Segment financials Operating revenue by business area Apr-Jun Apr-Jun Jan-Jun Jan-Jun Jul-Jun Jan-Dec SEK M 216 215 % 216 215 % 215/16 215 % Individual & Family 511 415 23% 1 19 821 24% 1 948 1 75 11% Personal Assistance 656 671-2% 1 323 1 328 % 2 684 2 689 % Elderly Care 186 183 2% 369 367 % 739 738 % Other Nordics 182 11 65% 294 214 38% 497 416 19% Total operating revenue 1 534 1 379 11% 3 5 2 73 1% 5 868 5 593 5% Organic revenue growth by business area 1) Apr-Jun Apr-Jun Jan-Jun Jan-Jun Jul-Jun Jan-Dec % 216 215 216 215 215/16 215 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 216 215 % 216 215 % 215/16 215 % Individual & Family 43 43-1% 98 9 9% 225 217 4% Personal Assistance 35 33 7% 74 81-1% 175 182-4% Elderly Care 4) -5-8 n/a -11-9 n/a -56-53 n/a Other Nordics 5) 18-28 n/a 22-23 n/a 32-13 n/a Central costs/other 6) -34-16 n/a -86-32 n/a -74-2 n/a Total Operating profit 56 24 137% 98 18-1% 32 312-3% 23