Fourth Quarter 2016 – Presentation 15 February, 2017 Henrik Borelius, CEO Tomas Björksiöö, CFO
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Fourth Quarter 2016 – Presentation 15 February, 2017
Henrik Borelius, CEO Tomas Björksiöö, CFO
Financial summary of Q4: Continued stable development
Net sales SEK 2,647m (2,564), adjusted growth 4%
Operating profit (EBITA) of SEK 241m (215)
Operating margin (EBITA) of 9.1% (8.4)
Operating cash flow of SEK 404m (324)
High number of beds under construction: 1,935
Proposed dividends: 1.22 (0.54)
2
Business highlights: Stable growth in own operations
Net sales by contract model
3
-400
100
600
1 100
1 600
2 100
2 600
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Own operations Outsourcing Staffing Attendo
SEKm Q4 2016 Q4 2015 Chg (%)
Own operations 1,656 1,498 11
Outsourcing 787 805 -2
Staffing 204 261(183*) -22 (11*)
SEKm
Highlights by contract model
Own operations
• Stable growth development of net sales, +11%
• 8 new own homes opened, 210 beds
• Construction of 11 new units started, 420 beds
• Increased number of beds under construction: 1,935
Outsourcing operations
• Net sales decreased slightly compared to previous
year
• Contracts won with estimated annual sales of
SEK 100m, lost contract volumes of SEK 70m
• YTD, won contracts exceed lost contracts
Staffing operations
• Net sales increased adjusted for deconsolidation of
subsidiary*
TT deconsolidation
2013 2014 2015 2016
* Adjusted for subsidiary Terveyden Tuottajat deconsolidation, 31 December 2015 3
Own operations: Increased number of beds under construction
No. of beds under construction1)
No. of beds in operation2)
New own units
2013 2014 2015 2016
Attendo Kaisla, Sysmä Finland
Attendo Onnentäyttymys, Pornainen Finland
4
1 716
1 469
737755861827
918855922887
654611595
780650
1 935
Q2 Q1 Q4 Q3 Q3 Q2 Q1 Q4 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1
9 2809 0128 9328 8078 612
7 7457 5097 3487 0846 7096 4936 3856 2335 6095 646
7 751
Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q2 Q3 Q4 Q1
2013 2014 2015 2016
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).
Attendo Koskipuisto hoivakoti, Jämsä Finland
Market highlights: Continued strong demand for new nursing homes,
SOTE reform in Finland move forward Counties in SOTE reform Market highlights
Sweden
• Good demand for own operations solutions
• Tendered outsourcing contract volumes continued to
increase slightly
• In November 2016, the Swedish government presented
an investigation on how to restrict freedom of choice in
schools, healthcare and care
- The consultation process is ongoing and the
investigation has been met with harsh criticism
Finland
• Strong demand for own operations solutions
• Low activity in outsourcing market
• Staffing stable but challenging
• SOTE reform move forward
- Freedom of choice model in health care
- The SOTE counties need to corporatize their services
- Service vouchers will be more important in social care
5
12
SEKm Q4 2016 Q4 2015 Change (%)
Net sales 2,647 2,564 32
Organic -1.51 8.8 -
Acquired 2.4 1.9 -
Currency 2.3 0.0 -
Operating profit (EBITA) 241 215 12
Operating margin (EBITA ) 9.1 8.4 -
EBIT 210 201 4
Financial net -16 -231 -
Income tax -43 21 -
Profit for the period 151 -9 -
Diluted earnings per share, SEK 0.94 -0.06 -
Strong margin development
1) Organic growth 1.6 %, adjusted for deconsolidation of subsidiary Terveyden Tuottajat (TT)
2) Adjusted for deconsolidation of subsidiary Terveyden Tuottajat (TT) and currency effect, net sales increased 4%
6
Q4 2016 vs. Q4 2015:
+ Improved occupancy in units that were under start-up during Q4 2015
+ Improved planning and processes
+ Acquisitions
- Lower contribution from home care
- Net new / ended outsourcing and staffing contracts
Net +26m
Higher operating profit due to higher occupancy in new units and
improved planning and processes
7
Strong cash generation in Q4
SEKm Q4 2016 Q4 2015
Operating profit (EBITA) 241 215
Change in working capital, paid tax and non cash items 217 155
Cash flow after change in working capital 458 370 Net investments in tangible and intangible assets -54 -46
Operating cash flow 404 324
Interest received/paid -16 -74
Free cash flow 388 250
Net of acquisitions / divestments -79 -148
Cash flow from financing -148 -282
Total cash flow 161 -180
Net debt 2,722 2,827
Net debt/EBITDA 2.4x 2.6x
8
Attendo’s quality definition
Satisfied individuals
Systematic quality work based on
continuous improvement
Best available knowledge
2
3
1
Examples from fourth quarter 2016
Client
survey
Values Projects
Implementation
plan/methods
• Continued solid quality results throughout the
organization.
• Attendo’s quality thermometer for 2016
amounted to 85%
• Attendo’s home care in Sweden got higher customer
satisfaction than LA and other private, according to
The National Board of Health and Welfare
• Attendo’s life style nursing homes scored high in the
same survey - Attendo got 85%, vs 82% average
• Ongoing projects to take on around 400 people with
an immigrant background as interns in Sweden
• Successful project to ensure access to competence:
Philippine nurses are currently working and trained in
Sweden
Client
survey
Values
External
inspections
Specific
events Internal
audit
Systematic
quality work
Risk
analysis
Projects
Implementation
plan/methods
Quality & employees: good results from customer surveys
9
Summary – Full Year 2016
10
Solid development in line with long term targets
Continued strong demand for new own homes. 20 new own
homes were opened with 770 beds. Increased pace of beds
under construction, 1,935 by end of the year
Net sales of SEK 10.2bn (9.8), growth of 7% adjusted for currency and
deconsolidation
Operating profit (EBITA) of SEK 1,002m (933)
Operating margin (EBITA) of 9.8% (9,5)
Operating cash flow of SEK 805m (765)
The Board of Directors proposes a dividend of SEK 1.22 per share in
line with Attendo’s policy
62%
30%
8%
Net sales by contract model
Own operations
Outsourcing
Staffing
62% 19%
19%
Net sales by service offering
Care for olderpeople
Care
Healthcare
Strong market fundamentals ~80.000 new beds required (2016-2030)
11
Demand for new beds per year – SWE and FIN
Nursing homes, 2011-2030
5,5
6,0
6,5
7,0
3,0
3,5
4,0
5,0
4,5
0,5
1,0
1,5
2,5
2,0
7,5
8,0
0,0
1,3
3,4
1,1
2,3
1,8
2011A
2,8
1,0
2013A
1,0
2012A
2,1
3,1
3,0
2029
2030
Finland
Sweden
2025
2026
2028
2027
2022
3,3
2015A
4,9
4,0
1,6
2024
2023
2016A
2018
2021
2019
2014A
4,3
2,6
1,4
2017
2020
1) Driven by demography, stricter care need evaluation, replacement of old capacity, private penetration, financing.
Source: SCB, Socialstyrelsen, Attendo
62%
40%
17%
38%
21% 22%
Finland Sweden
Local authority
Other private
Attendo
Share of new
beds 2012-2016
Thousands;
beds
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