first quarter 2016 presentation - cominvestors.attendo.com/sites/default/files/report/attendo... ·...
TRANSCRIPT
First Quarter 2016 – Presentation 12 May, 2016
Henrik Borelius, CEO Tomas Björksiöö, CFO
Financial summary: Stable development in net sales, operating profit and cash flow
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Net sales SEK 2.5bn (2.4), growth 3.4%, adjusted growth 7.4 %
- Strong performance in own operations
Operating profit (EBITA) of SEK 197m (187), Operating margin (EBITA) of 8.0% (7.8)
- High occupancy and improved planning and processes
compensated for seasonality
Operating cash flow of SEK 143m (57)
Business highlights: Strong growth in own operations Net sales by contract model
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-400
100
600
1 100
1 600
2 100
2 600
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Own operations Outsourcing Staffing Attendo
SEKm Q1 2016 Q1 2015 Chg (%)
Own operations 1,511 1,322 14.3
Outsourcing 769 818 -6.0
Staffing 192 251 (175*) -23.5 (9.7*)
SEKm
Highlights by contract model
Own operations
• Strong development of net sales, + 14.3%
• New openings: 4 new own homes for older people and
people with disabilities
• Construction of 4 new units started
• Total number of beds under construction: 737
• Attractive home care offering, growth of client base
Outsourcing operations
• Net sales decreased compared to previous year as a
result of contracts ended
• Won contracts with estimated annual sales of SEK 90m
balanced lost contracts of SEK 90m
• Two larger contracts won in quality tenders
Staffing operations
• Net sales increased 10%, adjusted for TT
deconsolidation, in a continued challenging market.
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TT deconsolidation
2013 2014 2015 2016
* Adjusted for subsidiary Terveyden Tuottajat deconsolidation, 31 december 2015
Own operations: Solid growth in beds in operation
650
780
595 611 654
887 922 855
918 827
861
755 737
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
Q313 Q114 Q314 Q213 Q115 Q315 Q413 Q214 Q414 Q215
No. of beds under construction1)
No. of beds in operation2)
New own units
4 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
Q415
Attendo Peiponhovi, Turku Finland
Open January 2016
Attendo Nissabogatan, Halmstad Sweden
Open February 2016
Attendo Kankaronmäki, Kouvola Finland
Open January 2016
Q113
Q313 Q114 Q314 Q213 Q115 Q315 Q413 Q214 Q414 Q215 Q415 Q113
Q116
Q116
Q1 2016
Market highlights: Continued strong interest in own units
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54% 41%
3% 2%
Sweden Finland Norway Denmark
Net sales by country Market highlights
Sweden
• Strong demand within own units
• Nursing home deficit leads to need from public sector
for new solutions
• Outsourcing market still challenging
• City of Stockholm proposes changes in its freedom of
choice model (LOV). Freedom of choice to remain,
quality requirements to be increased
Finland
• Strong demand within own units
• Outsourcing and staffing markets still challenging
• SOTE reform proceeds:
- announcement about a possible proposal of
temporary restriction for municipalities to sign
combination contracts
- proposal regarding how to increase the role of
private provision
SOTE aims to increase freedom of choice, quality and productivity in care and health care
• New regional structure from 1/1 2019 – Care and healthcare services transferred from 301 municipalities/
20 hospital districts to 18 self-governing SOTE-regions
– Demanding specialist care handled in 5 larger regions
– No right to taxation – all funding to come from the state
• Freedom of choice and multi-producer model – Clear split between payor and provider through corporatization
– Private entry is welcome in all regions – government sets overall goal for
private share of market
– Level playing field guaranteed by treating public and private equally
– Four models for freedom of choice in health centers have been presented,
with different levels of service integration
• Higher quality at lower cost – By increasing the role of private provision and integrating services, the
government expects savings of €3bn by 2030
– Regions responsible for measuring quality and efficiency
of all providers
– Client should have the right to choose the best provider
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SEKm Q1 2016 Q1 2015 Change (%)
Net sales 2,472 2,391 3.4*
Organic 3.1 4.6 -
Acquired 0.9 1.9 -
Currency -0.6 2.8 -
Operating profit (EBITA) 197 187 5.3
Operating margin (EBITA ) 8.0 7.8 -
EBIT 184 178 3.4
Financial net -21 -104 -
Income tax -35 -17 -
Profit for the period 128 57 -
Diluted earnings per share, SEK 0.80 0.36 -
Stable organic growth and operating margin (EBITA)
* Adjusted for deconsolidation of subsidiary Terveyden Tuottajat (TT) and currency effect, net sales increased 7.4%
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+ Improved occupancy in units that were under start-up during Q1 2015
+ Improved planning and processes
- Seasonal effect
- Outsourcing contracts ended
Net +10m
Continued improvement in operating profit (EBITA)
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Stable operating cash flow and significantly reduced net debt
SEKm Q1 2016 Q1 2015
Operating profit (EBITA) 197 187
Change in working capital and non cash items -8 -92
Cash flow after change in working capital 189 95 Net investments in tangible and intangible assets -46 -38
Operating cash flow 143 57
Interest received/paid -12 -75
Free cash flow 131 -18
Net of acquisitions / divestments -13 -79
Cash flow from financing -197 -8
Total cash flow -79 105
Net debt 2,732 4,233
Net debt/EBITDA 2.5x 4.3x
Attendo’s quality definition
Satisfied individuals
Systematic quality work based on
continuous improvement
Best available knowledge
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Solid progress on quality and employee development
Examples from first quarter 2016
Client
survey
Values Projects
Implementation
plan/methods
• Attendo’s Quality Report was published for the fifth
consecutive year
- good progress with improvements in all
services offerings
- internal quality thermometer on highest level ever
• Examples of new appreciated ways of working:
- New model of dialogue meetings engages people
with disabilities
- Digital planning system “Mobile care”
- Virtual behavioral therapy supporting weight loss
groups
• Employees recognised for good achievements, for
example Queen Silvia Nursing Award
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Client
survey
Values
External
inspections
Specific
events Internal
audit
Systematic
quality work
Risk
analysis
Projects
Implementation
plan/methods
Q&A
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