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Second Quarter 2016 Presentationinvestors.attendo.com/sites/default/files/report/... · 7/28/2016...

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Second Quarter 2016 Presentation 28 July, 2016 Henrik Borelius, CEO Tomas Björksiöö, CFO
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Page 1: Second Quarter 2016 Presentationinvestors.attendo.com/sites/default/files/report/... · 7/28/2016  · Second Quarter 2016 – Presentation 28 July, 2016 Henrik Borelius, CEO Tomas

Second Quarter 2016 – Presentation 28 July, 2016

Henrik Borelius, CEO Tomas Björksiöö, CFO

Page 2: Second Quarter 2016 Presentationinvestors.attendo.com/sites/default/files/report/... · 7/28/2016  · Second Quarter 2016 – Presentation 28 July, 2016 Henrik Borelius, CEO Tomas

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

Page 3: Second Quarter 2016 Presentationinvestors.attendo.com/sites/default/files/report/... · 7/28/2016  · Second Quarter 2016 – Presentation 28 July, 2016 Henrik Borelius, CEO Tomas

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

3

TT deconsolidation

2013 2014 2015 2016

* Adjusted for subsidiary Terveyden Tuottajat deconsolidation, 31 December 2015

Page 4: Second Quarter 2016 Presentationinvestors.attendo.com/sites/default/files/report/... · 7/28/2016  · Second Quarter 2016 – Presentation 28 July, 2016 Henrik Borelius, CEO Tomas

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

Page 5: Second Quarter 2016 Presentationinvestors.attendo.com/sites/default/files/report/... · 7/28/2016  · Second Quarter 2016 – Presentation 28 July, 2016 Henrik Borelius, CEO Tomas

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

Page 6: Second Quarter 2016 Presentationinvestors.attendo.com/sites/default/files/report/... · 7/28/2016  · Second Quarter 2016 – Presentation 28 July, 2016 Henrik Borelius, CEO Tomas

Q2 2016

Market highlights: Continued strong interest in own units

6

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

Page 7: Second Quarter 2016 Presentationinvestors.attendo.com/sites/default/files/report/... · 7/28/2016  · Second Quarter 2016 – Presentation 28 July, 2016 Henrik Borelius, CEO Tomas

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%

7

Page 8: Second Quarter 2016 Presentationinvestors.attendo.com/sites/default/files/report/... · 7/28/2016  · Second Quarter 2016 – Presentation 28 July, 2016 Henrik Borelius, CEO Tomas

+ 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)

8

Page 9: Second Quarter 2016 Presentationinvestors.attendo.com/sites/default/files/report/... · 7/28/2016  · Second Quarter 2016 – Presentation 28 July, 2016 Henrik Borelius, CEO Tomas

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

Page 10: Second Quarter 2016 Presentationinvestors.attendo.com/sites/default/files/report/... · 7/28/2016  · Second Quarter 2016 – Presentation 28 July, 2016 Henrik Borelius, CEO Tomas

Attendo’s quality definition

Satisfied individuals

Systematic quality work based on

continuous improvement

Best available knowledge

2

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

10

Client

survey

Values

External

inspections

Specific

events Internal

audit

Systematic

quality work

Risk

analysis

Projects

Implementation

plan/methods

Page 11: Second Quarter 2016 Presentationinvestors.attendo.com/sites/default/files/report/... · 7/28/2016  · Second Quarter 2016 – Presentation 28 July, 2016 Henrik Borelius, CEO Tomas

Q&A

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Page 12: Second Quarter 2016 Presentationinvestors.attendo.com/sites/default/files/report/... · 7/28/2016  · Second Quarter 2016 – Presentation 28 July, 2016 Henrik Borelius, CEO Tomas
Page 13: Second Quarter 2016 Presentationinvestors.attendo.com/sites/default/files/report/... · 7/28/2016  · Second Quarter 2016 – Presentation 28 July, 2016 Henrik Borelius, CEO Tomas

Disclaimer

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

presentation is made, or by reading the presentation slides, you agree to be bound by the following limitations.

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

from the use of this document.

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