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)
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Business highlights: Solid 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
Own operations Outsourcing Staffing Attendo
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*)
SEKm
Highlights 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
• 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
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TT deconsolidation
2013 2014 2015 2016
* Adjusted for subsidiary Terveyden Tuottajat deconsolidation, 31 December 2015
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
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Own operations: All-time high growth of beds under construction
650
780
595 611 654
887 922 855 918 827 861 755
737
1 469
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
Q3 Q1 Q3 Q2 Q1 Q3 Q4 Q2 Q4 Q2
No. of beds under construction1)
No. of beds in operation2)
New own units
5 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
Q4 Q1 Q1 Q2
2013 2014 2015 2016
Q3 Q1 Q3 Q2 Q1 Q3 Q4 Q2 Q4 Q2 Q4 Q1 Q1 Q2
2013 2014 2015 2016
Attendo Sandstuguvägen, Botkyrka Sweden
Open April 2016
Attendo Honkalinna, Kankaanpää Finland
Open June 2016
Attendo Holstinpuisto, Jyväskylä Finland Open May 2016
Q2 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 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
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
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 -
Stable organic growth and operating margin (EBITA)
* Adjusted for deconsolidation of subsidiary Terveyden Tuottajat (TT) and currency effect, net sales increased 7.9%
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+ Improved occupancy in units that were under start-up during Q2 2015
+ Improved planning and processes
+ Seasonal effect
- Outsourcing contracts ended
Net +38m
Continued improvement in operating profit (EBITA)
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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
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Attendo’s quality definition
Satisfied individuals
Systematic quality work based on
continuous improvement
Best available knowledge
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3
1
Continued focus on quality and employee development
Examples from second quarter 2016
Client
survey
Values Projects
Implementation
plan/methods
• Attendo’s structured quality work continues
- new contract wins on quality/digitalization
- good progress in Attendo’s internal quality audit
• Keeping Attendo’s values and vision alive
- 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
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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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