Second quarter 2017 - Presentation - 27 July, 2017 - Cision
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Second quarter 2017 – Presentation
27 July, 2017
Henrik Borelius, CEO Tomas Björksiöö, CFO
Financial summary of Q2: Stable growth in line with targets
• Net sales SEK 2,744m (2,525), adjusted
growth 7%
• Operating profit (EBITA) of SEK 228m (224),
including calendar effects SEK -25m
• Operating margin (EBITA) of 8.3% (8.9)
• Earnings per share SEK 0.88 (0.91)
• Operating cash flow of SEK 262m (157)
• Increased number of beds under construction:
2,378
• High activity level in M&A
2
Business highlights: Stable growth in own operations
Highlights by contract model Net sales by contract model
Own operations SEKm Q2 2017 Q2 2016 Chg (%)
• Stable growth development of net sales, +11%
Own operations 1,733 1,557 11
• 11 new own homes opened, ~400 beds
Outsourcing 824 775 6
• Construction of 20 new units started, ~630 beds
Staffing 187 193 -3
• Increased number of beds under construction: 2,378
• High M&A activity SEKm
2 800
Outsourcing operations
2 300
• Net sales increased by 6% compared to Q2 2016,
mainly due to the start of combination contracts in Q1
1 800
• Contracts won with estimated annual sales of
SEK 110m, lost contract volumes of SEK 280m
1 300
Staffing operations
800
• Net sales decreased slightly compared to previous
year due to ended contracts
300
-200 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2014 2015 2016 2017
Own operations Outsourcing Staffing Total
3
Acquisitions that strengthen Attendo’s own operations
• Mikeva is a leading Finish care provider Mikeva’s operations
– Strengthens Attendo’s operations in social psychiatry and
care for people with disabilities
– Geographically complements Attendo’s offering in care for
older people in Finland
– Turnover of EUR ~100m (2016), ~2,800 beds (of which 300
beds under start-up) in operation and 100 beds under
construction
• Nøstret is Attendo’s first entry to Norwegian
market for social psychiatry
– Provides care to customers with severe mental illness
– Located outside of Oslo, ~80 beds
• Humana’s home care complements Attendo’s
existing home care
– ~10 locations in Sweden, ~2,000 customers
– Operations in several of Attendo’s current regions
4
Own operations: Increased number of beds under construction
No. of beds under construction1) New own units
2 378
2 159
1 935
1 716
1 469
887 922 855 918 861
827 755 737
654
Attendo Rauha, Uusikaupunki Finland
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2014 2015 2016 2017
No. of beds in operation2)
9 280 9 249 9 550
8 807 8 932 9 012
8 612 Attendo Nissabogatan, Halmstad Sweden
7 509 7 745 7 751
7 084 7 348
6 493 6 709
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2014 2015 2016 2017 Attendo Mejerigatan, Vellinge Sweden
1) Own nursing homes (CoP) and own care homes (care for people with disabilities and social psychiatry).
2) Own nursing homes (CoP) and own care homes (care for people with disabilities, social psychiatry and individuals and families).
5
Market highlights: Continued strong demand for new nursing
homes, while outsourcing market is more challenging
Sweden Finland
• Solid demand for own operations solutions • Strong demand for own operations solutions
• Outsourcing contract volumes declined • Continued low activity in outsourcing market
slightly • Staffing stable but challenging
• In May 2017, the Swedish government • SOTE reform moves forward
presented the second part of the • Constitutional committee demanded delayed
commission on how to restrict freedom of implementation to 1 January 2020
choice in welfare services • A modified proposal to congress will be
• Strong criticism from authorities and local worked out in H2 2017
authorities as well as experts and companies
6
P&L: Stable profit development
SEKm Q2 2017 Q2 2016 Change (%)
Net sales 2,744 2,525 9
Organic 2.2 3.7 -
Acquired 4.3 1.0 -
Currency 2.2 -0.4 -
Operating profit (EBITA) 228 224 2
Operating margin (EBITA), % 8.3 8.9 -
EBIT 195 207 -6
Financial net -16 -21 -
Income tax -38 -40 -
Profit for the period 141 146 -3
Diluted earnings per share, SEK 0.88 0.91 -3
7
EBITA change: Positive impact from improved planning and
processes
Q2 2017 vs. Q2 2016:
+ Improved planning and processes
+ Acquisitions
+ Improved occupancy in units that were under
Net +4m start-up during Q2 2016
- Calendar effect
- Integration solutions and home care
- Own unit start-ups and net change outsourcing
portfolio
8
Cash flow: Stable operating cash flow generation in Q2
SEKm Q2 2017 Q2 2016
Operating profit (EBITA) 228 224
Change in working capital, paid tax and non cash items 88 -23
Cash flow after changes in working capital 316 201
Net investments in tangible and intangible assets -54 -44
Operating cash flow 262 157
Interest received/paid -16 -18
Free cash flow 246 139
Net change in assets and liabilities held for sale -171 -
Net of acquisitions/divestments -89 -78
Cash flow from financing -26 -274
Total cash flow -40 -213
Net debt 2,923 2,788
Net debt/EBITDA 2.4 2.5
9
Quality & employees: Focus on outdoor activities and indoor
safety
Examples from second quarter 2017
• Focus on older peoples need for movement and
outdoor activities. The annual fitness walk,
“Attendolunken”, was carried out at many units
Implementation Client
• In Q2, Attendo’s home care operation
plan/methods survey started the
project “Safety Indoors”, focusing on identifying risks
Projects Values
in the home environment in order to prevent
accidents
• Several new units had special opening ceremonies:
at Attendo Nissabogatan, one of Sweden’s master
chefs arranged a lunch for the residents
10Disclaimer
This presentation has been prepared by Attendo AB (publ) (the “Company”) solely for use at this presentation and is furnished to you
solely for your information and may not be reproduced or redistributed, in whole or in part, to any other person. The presentation
does not constitute an invitation or offer to acquire, purchase or subscribe for securities. By attending the meeting where this
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This presentation is not for presentation or transmission into the United States or to any U.S. person, as that term is defined under
Regulation S promulgated under the Securities Act of 1933, as amended.
This presentation contains various forward-looking statements that reflect management’s current views with respect to future events
and financial and operational performance. The words “believe,” “expect,” “anticipate,” “intend,” “may,” “plan,” “estimate,” “should,”
“could,” “aim,” “target,” “might,” or, in each case, their negative, or similar expressions identify certain of these forward-looking
statements. Others can be identified from the context in which the statements are made. These forward-looking statements involve
known and unknown risks, uncertainties and other factors, which are in some cases beyond the Company’s control and may cause
actual results or performance to differ materially from those expressed or implied from such forward-looking statements. These risks
include but are not limited to the Company’s ability to operate profitably, maintain its competitive position, to promote and improve its
reputation and the awareness of the brands in its portfolio, to successfully operate its growth strategy and the impact of changes in
pricing policies, political and regulatory developments in the markets in which the Company operates, and other risks.
The information and opinions contained in this document are provided as at the date of this presentation and are subject to change
without notice.
No representation or warranty (expressed or implied) is made as to, and no reliance should be placed on, the fairness, accuracy or
completeness of the information contained herein. Accordingly, none of the Company, or any of its principal shareholders or
subsidiary undertakings or any of such person’s officers or employees accepts any liability whatsoever arising directly or indirectly
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