Second Quarter 2016 Presentation 28 July, 2016 Henrik Borelius, CEO Tomas Björksiöö, CFO
Financial summary: Stable development in net sales and operating profit Net sales SEK 2.5bn (2.4), growth 4.3%, adjusted growth 7.9% - Continued strong performance in own operations Operating profit (EBITA) of SEK 224m (186), Operating margin (EBITA) of 8.9% (7.7) - High occupancy and improved planning and processes Operating cash flow of SEK 157m (178) 2
Business highlights: Solid growth in own operations Highlights by contract model Net sales by contract model Own operations Strong development of net sales, + 15.0% 3 new own homes opened, 130 beds Construction of 11 new units started, 480 beds SEKm Q2 2016 Q2 2015 Chg (%) Own operations 1,557 1,354 15.0 Outsourcing 775 803-3.5 Staffing 193 264 (191*) -26.9 (1.0*) Acquisitions adding 80 beds in operation and an additional 370 beds under construction Record high number of beds under construction: 1,469 Increased number of home care clients, organic and acquired Outsourcing operations Net sales decreased compared to previous year as a result of contracts ended Contracts won with estimated annual sales of SEK 210m, lost contract volumes of SEK 20m Staffing operations Stable development of net sales, adjusted for TT SEKm 2 600 2 100 1 600 1 100 600 100-400 TT deconsolidation Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2013 2014 2015 2016 Own operations Outsourcing Staffing Attendo * Adjusted for subsidiary Terveyden Tuottajat deconsolidation, 31 December 2015 3
Acquisitions in line with Attendo strategy 247 Hoivakodit Oy and Onnentäyttymys Oy, Finland Increasing the capacity within Care for older people Adding a large number of own operations in line with Attendo focus 80 beds in operation and 370 beds under construction strengthening present and future capacity. In addition, the rights to three upcoming construction projects. Samsa AB, Sweden (closing 1 July 2016, just after Q2): Increasing the capacity within Care, with homes for persons with disabilities (LSS), residential care homes (HVB) and a school for children with special needs 107 beds in operation in LSS and HVB homes and 5 beds under construction strengthening the capacity within highly specialized care. All in all an addition of 562 beds 4
Own operations: All-time high growth of beds under construction No. of beds under construction 1) New own units 1 469 650 780 595 611 654 887 922 855 918 827 861 755 737 Attendo Sandstuguvägen, Botkyrka Sweden Open April 2016 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2013 2014 2015 2016 No. of beds in operation 2) 5 646 5 609 6 233 6 385 6 493 6 709 7 084 7 348 7 509 7 745 7 751 8 612 8 807 8 932 Attendo Holstinpuisto, Jyväskylä Finland Open May 2016 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2013 2014 2015 2016 Attendo Honkalinna, Kankaanpää Finland Open June 2016 1) Own nursing homes (care for older people) and own care homes (care for people with disabilities and social psychiatry), end of quarter 2) Own nursing homes (care for older people) and own care homes (care for people with disabilities, social psychiatry and individuals and families), end of quarter 5
Market highlights: Continued strong interest in own units Market highlights Net sales by country Sweden Strong demand for own operations solutions Continued reporting of nursing home deficit and need from public sector Increased time to fill new homes Tendered outsourcing contract volumes increased, continued challenging market 41% Q2 2016 3% 2% 54% Finland Strong demand for own operations solutions Increased time to fill new homes Outsourcing still challenging Staffing market stabilized SOTE reform proposal for new legislation: - new regional structure - definition of service content for private providers - freedom of choice model Social contract signed to reduce unit labour cost Sweden Finland Norway Denmark 6
Stable organic growth and operating margin (EBITA) SEKm Q2 2016 Q2 2015 Change (%) Net sales 2,525 2,421 4.3* Organic 3.7 3.6 - Acquired 1.0 2.1 - Currency -0.4 1.3 - Operating profit (EBITA) 224 186 20.4 Operating margin (EBITA ) 8.9 7.7 - EBIT 207 175 18.3 Financial net -21-104 - Income tax -40-15 - Profit for the period 146 56 - Diluted earnings per share, SEK 0.91 0.35 - * Adjusted for deconsolidation of subsidiary Terveyden Tuottajat (TT) and currency effect, net sales increased 7.9% 7
Continued improvement in operating profit (EBITA) Net +38m + Improved occupancy in units that were under start-up during Q2 2015 + Improved planning and processes + Seasonal effect - Outsourcing contracts ended 8
Stable operating cash flow and significantly reduced net debt SEKm Q2 2016 Q2 2015 Operating profit (EBITA) 224 186 Change in working capital, paid tax and non cash items -23 48 Cash flow after change in working capital 201 234 Net investments in tangible and intangible assets -44-56 Operating cash flow 157 178 Interest received/paid -18-69 Free cash flow 139 109 Net of acquisitions / divestments -78-14 Cash flow from financing -274-201 Total cash flow -213-106 Net debt 2,788 4,151 Net debt/ebitda 2.5x 4.3x 9
Continued focus on quality and employee development Attendo s quality definition Examples from second quarter 2016 1 2 3 Projects Risk analysis Implementation plan/methods Systematic quality work Internal audit Satisfied individuals Client survey Systematic quality work based on continuous improvement Best available knowledge Specific events Values External inspections Attendo s structured quality work continues - new contract wins on quality/digitalization - good progress in Attendo s internal quality audit Implementation plan/methods Client survey Keeping Attendo s values and vision alive Projects Values - values week in the units, supported by Attendo s value coaches Annual quality report published by Attendo Finland. Scandinavian reports were published during Q1 Project to ensure access to competence: Philippine nurses successfully trained and employed in Finland followed by a similar project in Sweden 10
Q&A 11
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