AI Terminal
Attendo
Earnings Release • Feb 10, 2022
3003_10-k_2022-02-10_df1c3d15-a894-4ef7-a288-222fab98d800.pdf
Earnings Release
Open in ViewerOpens in native device viewer
YEAR-END REPORT JANUARY-DECEMBER 2021
Summary of the fourth quarter
- Net sales amounted to SEK 3,338m (3,065). Organic growth was 5.4 percent.
- Lease adjusted operating profit (EBITA) 1 , i.e. EBITA according to the previous accounting standard, amounted to SEK 65m (87), corresponding to a lease adjusted operating margin of 2.0 percent (2.8). The effects of the pandemic are estimated to have affected profits by a net of just above SEK -40m (0).
- Operating profit (EBITA)1 amounted to SEK 172m (193), corresponding to an operating margin of 5.2 percent (6.3).
- The loss for the period amounted to SEK -8m (4). Diluted earnings per share were SEK -0.06 (0.02). Adjusted diluted earnings per share2 were SEK 0.21 (0.31).
- Free cash flow amounted to SEK 153m (132).
- There were 21,093 (20,349) beds in Attendo's homes3 at the end of the period. Occupancy in homes3 was 84 percent (81).
- High sick leave due to Omicron, and shortage of staff are expected to affect first quarter profits, primarily in Attendo Finland.
Summary of the January-December period
- Net sales amounted to SEK 12,867m (12,288). Organic growth was 4.4 percent.
- Lease adjusted operating profit (EBITA) 1 , i.e. EBITA according to the previous accounting standard, amounted to SEK 400m (375), corresponding to a lease adjusted operating margin of 3.1 percent (3.1). The effects of the pandemic are estimated to have affected profits by a net of about SEK -80m (-120). In comparison with 2020, profit in 2021 is negatively affected by SEK 96 million regarding non-recurring effects (excluding pandemic effects).
- Operating profit (EBITA)1 amounted to SEK 836m (797), corresponding to an operating margin of 6.5 percent (6.5).
- Profit for the period amounted to SEK 59m (-904). Diluted earnings per share were SEK 0.35 (-5.63). Adjusted diluted earnings per share2 were SEK 1.48 (1.43).
- Free cash flow amounted to SEK 249m (428).
- The Board of Directors is proposing no dividend for the 2021 financial year.
Group key figures
| Q4 | Jan-Dec | |||||
|---|---|---|---|---|---|---|
| SEKm | 2021 | 2020 | Δ% | 2021 | 2020 | Δ% |
| Net sales | 3,338 | 3,065 | 9% | 12,867 | 12,288 | 5% |
| Lease adjusted operating profit (EBITA) ¹ | 65 | 87 | -25% | 400 | 375 | 7% |
| Lease adjusted operating margin (EBITA)¹, % | 2.0 | 2.8 | - | 3.1 | 3.1 | - |
| Operating profit (EBITA)¹ | 172 | 193 | -11% | 836 | 797 | 5% |
| Operating margin (EBITA)¹, % | 5.2 | 6.3 | - | 6.5 | 6.5 | - |
| Profit for the period | -8 | 4 | - | 59 | -904 | - |
| Earning per share diluted, SEK | -0.06 | 0.02 | - | 0.35 | -5.63 | - |
| Adjusted earnings per share diluted¹' ², SEK | 0.21 | 0.31 | -31% | 1.48 | 1.43 | 4% |
| Free cash flow | 153 | 132 | 16% | 249 | 428 | -42% |
1) Note that unless otherwise stated, EBITA and lease adjusted EBITA in this report refer to EBITA/lease adjusted EBITA excluding items affecting comparability. See also definitions of key data and alternative performance measures on pages 30-31.
2) Profit for the period attributable to parent company shareholders excluding the effects of amortisation of acquisition-related intangible assets, IFRS 16 and items affecting comparability and related tax effects divided by the average number of shares outstanding after dilution.
3) From the first quarter of 2021, Attendo reports beds and occupancy for all Attendo homes in own operations and outsourcing and in all service offerings. Historical periods have been restated.
CEO's statement INCREASED OCCUPANCY IN CHALLENGING PERIOD
With vaccination programmes completed in all of our markets, residents in our nursing homes have been significantly better protected than during the second wave of the pandemic and we have seen very few cases of serious illness among our customers. Short term however, the quick transmission of Omicron has led to a sharp increase in sick leave, which creates challenges in operations and clearly pressured profits in the fourth quarter. At the same time, we are pleased to see continued strong inflow of new customers to our nursing homes in Sweden, and higher prices in Finland from 2022.
Scandinavia: Continued good customer inflow to nursing homes
During the quarter, we opened 100 new beds in own operations, and are consequently closing the year with a total of 600 new beds. During the autumn, we have seen a gradual normalisation of demand for nursing home placements and, despite openings, we managed to increase total occupancy with one percentage point to 80 percent in the quarter. There is still a long journey back to a satisfying occupancy level. Since the start of the pandemic, occupancy rate in our nursing homes has decreased significantly, driven by lower customer inflow as well as more openings. Regaining a total occupancy rate of around 90 percent is one of our key focus areas in 2022 and 2023. The way to achieve this is through customer focus, high quality of care, and a good cooperation with our payors.
Net sales in Attendo Scandinavia increased by around 7 percent to SEK 1,584 million due to a combination of more sold beds and acquisitions. Lease adjusted EBITA amounted to SEK 105 million, down about 6 percent compared to the preceding year. The decrease is explained by lower public support combined with higher costs to replace employees on sick leave.
Finland: Profits pressured by high personnel costs combined with lower public compensation
Demand for care beds in Finland remains strong. We managed to improve occupancy during 2021, although staff shortage affected our ability to accept new customers in certain geographies.
Martin Tivéus, President and CEO
"Regaining a total occupancy rate of around 90 percent is one of our key focus areas in 2022 and 2023. The way to achieve this is through customer focus, high quality of care, and a good cooperation with our payors."
As a consequence of the rapid transmission and national quarantine regulations, sick leave reached record high levels during the end of the quarter. In an already strained labour market, this led to increased costs for overtime and external staffing. During the same period, we have had to increase staffing as new legal requirements came into force at the turn of the year. In total, these factors affected the result negatively.
Lease adjusted EBITA amounted to SEK -24 million in the fourth quarter, down by SEK 9 million compared to the preceding year. Attendo Finland's net sales in local currency increased by roughly 12 percent to SEK 1,754 million, primarily due to more sold beds and higher prices.
Sick leave has continued to rise in early 2022 in line with the rapid spread of Omicron. With the current record high sick leave levels, we expect a negative effect on profits of SEK 15-20 million per month in Attendo Finland. We anticipate sick leave to remain on a high level during the first two months of 2022 before it gradually decreases and normalizes.
Our main focus for Attendo Finland in 2022 is to achieve sustainable business terms and to be able to secure staff to comply with increasing staff requirements. During the fourth quarter of 2021, we renegotiated parts of our framework contracts in Finland. We achieved an average price adjustment for these contracts of about 12 percent. Combined with other index-related price increases, this will result in positive price effects of about 5 percent of total net sales in 2022 for Attendo Finland. Underlying cost inflation as well as costs related to the new staffing law is expected to amount to just over 4 percent on a fullyear basis. We still believe that the price level is structurally too low in Finland, where private operators are providing care at prices far below the municipalities' costs to produce care under public management. We will therefore continue to pursue a comprehensive effort to secure compensation for upcoming staff increases in 2023 and to bring about sustainable conditions for the industry as a whole.
Group: Good organic growth
Organic growth amounted to 5 percent, driven mainly by higher customer inflow in Finland and Sweden. Lease adjusted EBITA was SEK 65 million in the fourth quarter, down by SEK 22 million compared to the preceding year. The decline in profit is primarily attributable to lower public compensation and unusually high personnel costs. As mentioned, Attendo is still experiencing negative financial impact from the Covid pandemic. For the fourth quarter isolated, profits were negatively affected by net of just above SEK 40 million. The effects of the pandemic are expected to subside during the second quarter 2022 as sick leave returns to more normal levels and occupancy increases.
Value creation and financial targets
In early 2021, Attendo introduced new financial targets for 2023, including a profit target for adjusted earnings per share of at least SEK 4 by 2023. The target was based primarily on the following factors: an expected recovery after the pandemic, higher occupancy in all markets, higher price levels in Finland and operational improvements.
The target of SEK 4 per share can be compared to SEK 1.5 per share in 2021 (1.4). The profit improvement in 2021 in relation to 2020 was constrained by significant negative pandemic effects and high personnel costs in Finland. Our plan to achieve at least SEK 4 per share in 2023 still applies. In order to obtain this target, we need to continue to increase occupancy in our two main markets and reach satisfactory price levels in Finland also 2023.
We still have significant potential to improve our methods in all segments, and possibilities for value creating acquisitions. We expect the pandemic to affect profit in 2022 but to a lesser extent than in 2021 and anticipate very limited impact in 2023.
Martin Tivéus President and CEO
Group
October–December 2021
Net sales and operating profit
Net sales increased by 8.9 percent to SEK 3,338m (3,065) during the quarter. Adjusted for currency effects, net sales increased by 9.8 percent. Organic growth accounted for 5.4 percent and the net change due to acquisitions and divestments was 4.5 percent. Organic growth is attributable mainly to higher net sales in Attendo Finland, particularly in care for older people. The negative impact of the pandemic on occupancy in Attendo Scandinavia persisted.
Lease adjusted operating profit (EBITA)1 amounted to SEK 65m (87). The leaseadjusted operating margin (EBITA)1 was 2.0 percent (2.8). Financial effects of the pandemic affected profits with an estimated net of just over SEK -40m (0). Excluding these effects, lease adjusted EBITA increased in both business areas, particularly in Attendo Finland.
Effects on operating profit (EBITA)1 related to IFRS 16 amounted to SEK 107m (106). The increase is attributable to rental contracts in new homes.
Operating profit (EBITA)1 amounted to SEK 172m (193) and the operating margin was 5.2 percent (6.3). Currency effects had no impact on the operating profit.
The total number of beds in operation in all homes was 21,093 (20,349) at the end of the quarter, an increase by 4 percent. Occupancy in all homes was 84 percent (81) at the end of the quarter. Mature units showed a lease adjusted operating margin (EBITA)1 on a rolling 12-month basis (r12) of 6.7 percent including a proportional share of Attendo's administrative expenses but excluding capital gains. This is a minor decrease compared to the preceding quarter arising from increased negative Covid effects. The number of beds under construction in own operations was 433 across 8 homes.
Operating profit (EBIT) excluding items affecting comparability amounted to SEK 159m (162), corresponding to an operating margin (EBIT) excluding items affecting comparability of 4.8 percent (5.3). The change is attributable to the same factors as described above, as well as lower amortisation of acquisition-related intangible assets.
Items affecting comparability during the comparison quarter refer to currency effects related to the impairment of goodwill and right-of-use assets in the Finnish operations recognised in the second quarter of 2020.
Operating profit (EBIT) amounted to SEK 159m (168), corresponding to an operating margin (EBIT) of 4.8 percent (5.5).
1) Excluding items affecting comparability
Net sales per business area, Q4 2021 (SEKm)
Lease adjusted operating profit (EBITA)1 per business area, Q4 2021 (SEKm)
Financial net
Net financial items amounted to SEK -159m (-164) in the quarter, including net interest expense of SEK -7m (-13). Interest expense related to the lease liability for real estate in accordance with IFRS 16 amounted to SEK -146m (-141).
Income tax
Income tax for the period amounted to SEK -8m (0). Tax for the period was affected by low operating results and temporary differences in profit.
Profit and earnings per share for the period
The loss for the period was SEK -8m (4), corresponding to basic and diluted earnings per share for shareholders in the parent company of SEK -0.06 (0.02). Adjusted diluted earnings per share were SEK 0.21 (0.31).
January–December 2021
Net sales and operating profit
Net sales for the period increased by 4.7 percent to SEK 12,867m (12,288). Adjusted for currency effects, net sales increased by 6.6 percent. Organic growth accounted for 4.4 percent and the net change due to acquisitions and divestments was 2.2 percent. Organic growth is attributable mainly to higher net sales in Attendo Finland, particularly in care for older people. The pandemic has had significant negative impact on Attendo Scandinavia's business.
Lease adjusted operating profit (EBITA)1 amounted to SEK 400m (375). The lease adjusted operating margin (EBITA)1 was 3.1 percent (3.1). Attendo Finland's profit increased overall and in all service offerings, while Attendo Scandinavia's profit decreased. The net effects of the pandemic on profits are estimated to SEK -80 million (-120). Increased costs and negative profit impact due to loss of revenue were partially offset by SEK 81 million in public compensation that Attendo received during the period for additional costs due to the Covid pandemic attributable to 2020. In relation to the comparison period, profits were negatively affected by a total of SEK 96m consequent upon a number of effects of a non-recurring nature: additional recovery days in 2021, SEK 15m; compensation to property owners in 2021, SEK 20m; the leap day in 2020, SEK 20m; and a capital gain in 2020, SEK 41m.
Effects on operating profit (EBITA)1 related to IFRS 16 amounted to SEK 436m (422). The increase is attributable to rental contracts in new homes.
Operating profit (EBITA)1 amounted to SEK 836m (797) and the operating margin was 6.5 percent (6.5). Adjusted for currency effects, operating profit (EBITA)1 was SEK 846m.
Operating profit (EBIT) excluding items affecting comparability amounted to SEK 755m (673), corresponding to an operating margin (EBIT) excluding items affecting comparability of 5.9 percent (5.5). The change is attributable to the same factors as described above, as well as lower amortisation of acquisition-related intangible assets.
Items affecting comparability refers to the impairment of goodwill and right-of-use assets related to operations in Finland. Impairment losses were taken in Q2 2020 on goodwill and right-of-use assets, which reduced profit for the period by SEK -955m.
Operating profit (EBIT) amounted to SEK 755m (-282), corresponding to an operating margin (EBIT) of 5.9 percent (-2.3).
Financial net
Net financial items amounted to SEK -652m (-644) for the period, including net interest expense of SEK -36m (-57). Interest expense related to the lease liability for real estate in accordance with IFRS 16 amounted to SEK -581m (-559).
Income tax
Income tax for the period amounted to SEK -44m (22), corresponding to a tax rate of 42.7 percent (20.9) adjusted for the impairment of goodwill in the comparison period.
Profit and earnings per share for the period
Profit for the period was SEK 59m (-904), corresponding to basic and diluted earnings per share for shareholders in the parent company of SEK 0.35 (-5.63). Adjusted diluted earnings per share were SEK 1.48 (1.43).
Continued improvement in customer inflow
| Q4 | Jan-Dec | |||||
|---|---|---|---|---|---|---|
| SEKm | 2021 | 2020 | 2021 | 2020 | ||
| Net sales | 1,584 | 1,475 | 6,037 | 6,027 | ||
| Lease adjusted EBITA | 105 | 112 | 428 | 481 | ||
| Lease adjusted EBITA margin, % | 6.7 | 7.6 | 7.1 | 8.0 | ||
| Operating profit (EBITA) | 151 | 155 | 611 | 658 | ||
| Operating margin (EBITA), % | 9.6 | 10.5 | 10.1 | 10.9 |
Share of net sales, Q4 2021
47%
October–December 2021
Net sales in Attendo Scandinavia amounted to SEK 1,584m (1,475), corresponding to growth of 7.4 percent before and after currency effects. The increase is attributable mainly to higher net sales in nursing homes, as well as acquisitions, primarily in home care. Organic growth was affected by ended outsourcing contracts in disabled care. Occupancy in homes was in line with the comparison quarter but increased compared to Q3 2021. Occupancy is still constrained by the pandemic.
Lease adjusted EBITA amounted to SEK 105m (112), corresponding to a lease adjusted operating margin of 6.7 percent (7.6). The profit impact of the pandemic in the quarter is estimated to a net of just over SEK -30m (-20). The net effects in the comparison quarter were relatively limited because in that quarter Attendo received SEK 30m in compensation for certain additional costs attributable to earlier quarters 2020. Sick leave, which was higher than in a normal year during the quarter, increased significantly towards the end of the quarter. The number of sold beds was higher than in the comparison quarter, but the occupancy in homes was in line with the comparison quarter. Occupancy generally remains too low for efficient operations.
Effects on operating profit related to IFRS 16 amounted to SEK 46m (43). The increase is attributable to rental contracts in new nursing homes.
Operating profit (EBITA) amounted to SEK 151m (155), corresponding to an operating margin (EBITA) of 9.6 percent (10.5).
One nursing home with a total of 99 beds was opened during the quarter. The number of beds opened in own operations in the last twelve months was 594, a historically high level for Scandinavia. A high percentage of new units has negative impact on the average occupancy rate. Attendo started four outsourcing operations in care for older people during the quarter and ended a number of contracts, primarily in care for people with disabilities.
At the end of the quarter, there were 220 beds under construction in own operations. Since the comparison quarter, Attendo has discontinued home care operations in several municipalities, including in Denmark, and executed a number of acquisitions. Attendo won one outsourcing contract during the quarter, which has not yet started,
Net sales per service offering, Q4 2021
Business area:
ATTENDO FINLAND
with estimated annual sales of SEK 4m. Attendo lost two outsourcing contracts, which have not yet ended, with annual net sales of roughly SEK 90m.
Key data per quarter
| Attendo Scandinavia | Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 | ||||
|---|---|---|---|---|---|
| Number of beds in homes in operation¹ | 6,645 | 6,677 | 6,772 | 6,779 | 7,051 |
| Occupancy in homes¹, % | 80 | 77 | 77 | 78 | 80 |
| Number of opened beds in own homes (r12)² | 548 | 497 | 518 | 603 | 594 |
| Number of beds in own homes under construction² | 796 | 592 | 386 | 319 | 220 |
| Number of home care customers | 10,327 | 9,868 | 10,391 | 10,585 | 10,528 |
1) All homes.
2) Own homes.
January–December 2021
Net sales in Attendo Scandinavia amounted to SEK 6,037m (6,027), corresponding to a change of 0.2 percent. The divestment of the Norwegian operations in Q3 2020 reduced net sales by about SEK 190m. Adjusted for the divestment and currency effects, the change was 3.4 percent. Organic growth was negatively affected by the pandemic, ended outsourcing contracts and home care operations. Occupancy in homes was lower in 2021 than in 2020.
Lease adjusted EBITA amounted to SEK 428m (481), corresponding to a lease adjusted operating margin of 7.1 percent (8.0). Effects of the pandemic had an estimated net impact on profit of just over SEK -80m (-120) during the period, which includes SEK 62m in compensation for certain additional costs attributable to the Covid pandemic in 2020. The profit was negatively affected by costs of nursing homes opened in 2020 and 2021, as occupancy is initially low. A historically high number of homes were opened in 2021 and 2020. In relation to the comparison period, profit was negatively affected by non-recurring items of SEK 86m in total, comprised of additional recovery days in Q2 2021, SEK 15m; compensation to property owners in Q1 2021, SEK 20m; the leap day in Q1 2020, SEK 10m; and a capital gain in Q2 2020, SEK 41m. Profit in home care operations improved compared to the comparison period.
Effects on operating profit related to IFRS 16 amounted to SEK 183m (176). The increase is attributable to rental contracts in new nursing homes.
Operating profit (EBITA) amounted to SEK 611m (658), corresponding to an operating margin (EBITA) of 10.1 percent (10.9). The decrease is attributable to the same factors as described above for lease adjust
Profits impacted by high sick leave
| Q4 | Jan-Dec | ||||
|---|---|---|---|---|---|
| SEKm | 2021 | 2020 | 2021 | 2020 | |
| Net sales | 1,754 | 1,590 | 6,830 | 6,261 | |
| Lease adjusted EBITA¹ | -24 | -15 | 43 | -45 | |
| Lease adjusted EBITA margin¹, % | -1.4 | -0.9 | 0.6 | -0.7 | |
| Operating profit (EBITA)¹ | 37 | 48 | 296 | 200 | |
| Operating margin (EBITA)¹, % | 2.1 | 3.0 | 4.3 | 3.2 |
1) Excluding items affecting comparability
October–December 2021
Net sales in Attendo Finland amounted to SEK 1,754m (1,590) corresponding to growth of 10.3 percent. Adjusted for currency effects, net sales increased by 12.1 percent. The growth is attributable mainly to higher net sales in care for older people as a result of acquisitions, more sold beds and price increases. The total price increases correspond to just over 3 percent of total net sales. Occupancy in homes continued to improve and was up compared to both Q3 2021 and the comparison quarter. Attendo Finland has closed a number of homes since the comparison quarter. Staff shortages caused by higher sick leave due to the worsened Covid situation during the quarter and the industry's adjustments to new staffing requirements have constrained customer inflow to a certain extent because the staff requirements for accepting new customers could not be met in several regions. Above all, the staff shortages have entailed increased costs for overtime and external staffing.
Lease adjusted EBITA1 amounted to SEK -24m (-15) and the lease adjusted EBITA margin1 was -1.4 percent (-0.9). The profit impact of the pandemic in the quarter is estimated to a net of SEK -10 (20), including compensation of SEK 10m from local authorities. The negative effects have increased in the current quarter in pace with the worsening Covid situation, while overall effects in the comparison quarter were positive because Attendo received SEK 20m in that quarter in compensation for certain additional costs incurred in previous quarters in 2020. Sick leave, which was higher than in a normal year during the quarter, increased significantly towards the end of the quarter. Adjusted for Covid effects, profit rose in all service offerings, particularly in care for older people and care for people with disabilities. The increase in profit is attributable mainly to higher occupancy and price effects. Price increases in care for older people were partially offset by higher operating costs arising from the new law that came into force in 2020, annual wage and cost inflation as well as higher personnel costs due to staff shortage.
Share of net sales, Q4 2021
Net sales per service offering, Q4 2021
Effects on operating profit (EBITA)1 related to IFRS 16 amounted to SEK 61m (63). The increase is attributable to rental contracts in new homes.
Operating profit (EBITA)1 excluding items affecting comparability amounted to SEK 37m (48) and the operating margin (EBITA)1 decreased to 2.1 percent (3.0). Currency effects had no impact on profits.
In total, 238 beds were opened in the past twelve months. During the quarter, 78 beds were closed. Construction of one nursing home with a total of 83 beds began during the quarter, bringing the total number of beds under construction in own operations at the end of the quarter to 213.
As of 1 January 2022, the staff index in care for older people increases from 0.55 to 0.60 in accordance with the new staffing law. Several Finnish municipalities in which Attendo operates already apply a staff index of 0.60.
Key data per quarter
| Attendo Finland | Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 | ||||
|---|---|---|---|---|---|
| Number of beds in homes in operation¹ | 13,704 | 14,175 | 14,086 | 14,156 | 14,042 |
| Occupancy in homes¹, % | 82 | 83 | 85 | 85 | 86 |
| Number of opened beds in own homes (r12)² | 801 | 458 | 192 | 328 | 238 |
| Number of beds in own homes under construction² | 240 | 190 | 222 | 130 | 213 |
| Number of home care customers | 674 | 675 | 655 | 581 | 595 |
1) All homes.
2) Own homes.
January–December 2021
Net sales in Attendo Finland amounted to SEK 6,830m (6,261) corresponding to growth of 9.1 percent. Adjusted for currency effects, net sales increased by 12.8 percent. The growth is attributable mainly to higher net sales in care for older people due to an increase in more sold beds, acquisitions and price increases. The total price increases correspond to just over 3 percent of total net sales. Occupancy in homes was higher than in the comparison period. Attendo Finland has closed several homes since the comparison period.
Lease adjusted EBITA1 amounted to SEK 43m (-45) and the lease adjusted EBITA margin1 was 0.6 percent (-0.7). The profit increase is due to improved profit in care for older people and care for people with disabilities arising from more sold beds and price effects. Price increases in care for older people were partially offset by higher operating costs arising from the new law that came into force in 2020, annual wage and cost inflation and higher personnel costs in the second half due to staff shortage. In relation to the comparison period, profit was negatively affected by SEK 10m due to the leap day in 2020.
Net Covid-related effects on profit are estimated to be marginal for the full years 2021 and 2020, but profit fell sharply in the latter half of Q4 2021 due to higher sick leave. Lease adjusted operating profit increased in Attendo Finland in all service offerings.
Effects on operating profit related to IFRS 16 amounted to SEK 253m (245). The increase is attributable to rental contracts in new homes.
Operating profit (EBITA)1 increased to SEK 296m (200) and the operating margin (EBITA)1 rose to 4.3 percent (3.2). The increase is attributable to the same factors as described above for lease adjusted EBITA1 and effects related to IFRS 16. Currency effects amounted to SEK -10m.
Cash flow
October–December 2021
Free cash flow was SEK 153m (132) in the quarter, of which changes in working capital amounted to SEK 98m (47).
Cash flow from operating activities was SEK 450m (397). Cash used for net investments in non-current assets was SEK -48m (-40). Cash flow from investing activities thus amounted to SEK -48m (-43).
Cash flow from financing activities was SEK -149m (-403). New bank loans of SEK 100m (72) were raised during the quarter. Total cash flow amounted to SEK 253m (-49).
January–December 2021
Free cash flow was SEK 249m (428) for the period, of which changes in working capital amounted to SEK -72m (246).
Cash flow from operating activities was SEK 1,378m (1,645). Cash used for net investments in non-current assets was SEK -151m (-319) and cash flow from assets and liabilities held for sale amounted to SEK 2m (196). Business acquisitions reduced cash flow by SEK -263m (-114). Divestment of subsidiaries reduced cash flow by SEK -1m (-22). Cash flow from investing activities thus amounted to SEK -413m (-259).
Cash flow from financing activities was SEK -1,176m (-1,172). Bank loans of SEK -300m (-475) were repaid during the quarter. Total cash flow amounted to SEK - 211m (214).
Financial position
Equity attributable to shareholders in the parent company amounted to SEK 4,932m (4,849) as of 31 December 2021, representing diluted equity per share attributable to shareholders in the parent company of SEK 30.65 (30.13). Net debt amounted to SEK 13,366m (12,268). Lease adjusted net debt, excluding lease liability real estate, amounted to SEK 1,590m (1,573).
Interest-bearing liabilities as of 31 December 2021 amounted to SEK 13,877m (12,976). Attendo had cash and cash equivalents as of 31 December 2021 of SEK 513m (716) and SEK 1,665m (1,800) in unutilised credit facilities.
Net debt / EBITDA amounted to 6.2 (6.0). Lease adjusted net debt / lease adjusted EBITDA was 2.6 (2.6).
An option was exercised in the fourth quarter to extend the due date for existing loan agreements from 25 November 2022 to 25 November 2024.
Attendo has during the year performed a test of potential impairment of reported goodwill. The impairment test concluded that there is no need for impairment.
| 31 Dec | |||
|---|---|---|---|
| SEKm | 2021 | 2020 | |
| Interest-bearing liabilities | 13,877 | 12,976 | |
| Provisions for post-employment benefits | 2 | 8 | |
| Cash and cash equivalents | -513 | -716 | |
| Net debt | 13,366 | 12,268 | |
| Lease liability real estate | -11,776 | -10,695 | |
| Lease adjusted net debt | 1,590 | 1,573 |
| 31 Dec | |||
|---|---|---|---|
| SEKm | 2021 | 2020 | |
| Net debt / EBITDA | 6.2 | 6.0 | |
| Lease adjusted net debt / Lease adjusted | |||
| EBITDA | 2.6 | 2.6 |
Quality and employees
Following a relatively quiet period, the Covid transmission rate rose dramatically in the fourth quarter. Thanks to the implemented vaccination programme that covered all care recipients in all of our markets and the application of lessons learnt in earlier phases of the pandemic, Attendo has remained well-equipped to protect our customers.
In December a vaccination requirement was implemented for new employments and the effort to encourage more employees to get vaccinated will remain a high priority going forward. In Finland, there is a regulatory requirement for care staff to get vaccinated.
Attendo recognises Care Heroes every year in order to highlight one of the most important occupations in our society. Care Heroes are people who make a difference in care, people who are passionate about their jobs and exceed expectations. The Attendo Care Hero 2021 in Scandinavia was recognised during the quarter. The award went to Ahmed Idris Omar who is working as a cleaner at one of Attendo's nursing homes in Sweden since 2018.
During the year, we also worked to raise the base of our quality work, which is reflected in Attendo's quality index AQ, which increased during the year. During Q4 2021, the quality index was at 89, clearly above the target of at least 85. It was also a clear improvement from Q4 2020 when the quality index was at 86. The improvement in the quality index reflect that during the year we have strengthened and developed some of the measured quality parameters, such as self-inspection, documentation review, outcome in external audits, the proportion of completed quality protocols and serious incidents that resulted in a Lex Sarah or Lex Maria.
In 2021, we have also worked to strengthen the processes for self-control. The result is that the proportion of units approved in this year's internal audit increased by 13 percentage points to 92 percent from 2020 to 2021.
As part of the initiative to strengthen quality work in Attendo, a pilot project was initiated during the quarter in a number of nursing homes throughout Sweden, where Attendo is testing a tool and ways of working for measuring and improving the quality of life for our customers. By focusing on individual discussions about quality of life, we are able to ensure a customer centric care and health care, but also pursue our values and our mission to empower the individual.
The initiative to strengthen communicative leadership within Attendo started in the quarter. Communicative leadership involves how leaders communicate and interact with their employees and other stakeholders. The work of strengthening communicative leadership will continue in 2022 with the goal of improving managers' ability to engage employees through increased dialogue, feedback and greater involvement in decision-making.
Significant events in the fourth quarter
Acquisitions and divestments
A couple of small home care operations were acquired in Sweden during the quarter.
Other information
Ulf Mattsson nominated as new Chairman
Attendo's Nomination Committee has decided to nominate Ulf Mattsson to succeed Ulf Lundahl as Chairman of the Board of Attendo at the Annual General Meeting on 26 April 2022. Ulf Lundahl has notified the Nomination Committee that he declines re-election.
Ulf Mattsson is currently the Chairman of the Board of VaccinDirekt, Eltel and Prima Vård and Board Member of Addtech. He has previously served as Chairman of the Board of Securitas Direct and AcadeMedia and as CEO of Capio, Gambro and Mölnlycke Health Care. His previous board assignments include experience as Chairman of the Board of Evidensia and Musti Group.
Number of shares
The total number of shares is 161,386,592. Attendo's holding of treasury shares amounts to 473,744, which means the number of shares outstanding at 31 December 2021 was 160,912,848.
Number of employees
The average number of employees was 19,303 (17,523) in the fourth quarter and 19,041 (18,178) for the period of January–December.
Transactions with related parties
Transactions with related parties are described in the annual report. Related-party transactions take place on market terms. There were no significant transactions with related parties during the period.
Parent company, Attendo AB (publ)
The business of the parent company is to provide services to the subsidiaries and manage shares in subsidiaries. The company's expenses relate mainly to executive salaries, directors' fees and costs for external consultants.
Net sales for the period were SEK 15m (13) and were entirely related to services provided to subsidiaries. Profit for the period after net financial items was SEK 523m (15). Attendo AB received dividends of SEK 510m from
subsidiaries during the period. At the end of the fourth quarter, cash and cash equivalents amounted to SEK 0 (0), shares in subsidiaries to SEK 6,494m (6,494), and nonrestricted equity to SEK 6,534m (6,010).
Seasonal and calendar effects
Attendo's profitability is affected by factors including seasonal fluctuation, weekends and national public holidays. For Attendo, public holidays and weekends have a negative effect on profitability mainly due to wage compensation for unsocial working hours. For example, profitability is affected by Easter in either the first or second quarter, depending on the quarter in which Easter falls, while the first and fourth quarters are affected by the Christmas and New Year's holidays. The leap day positively affects net sales and profit because the majority of net sales and profits are based on days while the majority of costs are based on monthly periods.
Rounding
Note that roundings occur in text, charts and tables.
Significant events after the closing date
Annual General Meeting
The Annual General Meeting of shareholders in Attendo AB will be held 26 April 2022. Further information about the AGM will be published on Attendo's website. The annual report will be available at Attendo's head office and on the website at the latest by week 12, 2022.
Dividend 2021
Dividends shall be carefully considered with regard to the objectives, scope and risks of the business, including investment opportunities and the company's financial position. In both financial and operational terms, 2021 was a challenging year for Attendo that was characterized by the Covid pandemic. In the light of these circumstances, the Board of Directors is therefore proposing to the 2022 Annual General Meeting that no dividend should be distributed for the 2021 financial year.
Risks and uncertainties
All business requires companies to take risks in various forms and to various extents. Risk management, defined as the work involved in identifying, managing and monitoring risks, is a key component of Attendo's strategy and operations. Attendo takes a structured approach to managing risks based on a framework that covers industry and market risks, operational risks and financial risks. External risks related to the conditions for private companies to operate care businesses, political risks, regulatory risks and reputational risks. Operational risks refer to risks directly linked to Attendo's operations, such as occupancy, pricing and access to skilled employees. Financial risks are related to factors including access to capital, exchange rates, interest rates and liquidity. The risks and how Attendo manages them are described in greater detail in Attendo's annual report (see the "Risks and risk management" section in the 2021 annual report, pages 24-27).
Current risks and risk management
In the drive to further develop Attendo, external risks, operational risks and financial risks are assessed in the light of Attendo's strategy and financial targets.
The Covid pandemic remains a significant risk for Attendo, with serious impact on Attendo's business and financial performance. The most significant effects of the pandemic are decreased occupancy and increased personnel costs due to high sick leave among employees.
A comprehensive care reform is ongoing in Finland. One of the aspects of the reform is that staff requirements have been increased in several steps and are planned to increase further in 2023. Higher staff requirements entail higher costs for all providers. Private providers must negotiate with each local authority or county on price compensation for staffing changes, which entails an uncertainty. Costs also arise before each stage (staff requirements) comes into force and there is consequently a lag before compensation is received.
Staff provision in Finnish care for older people is generally strained and the shortage of care workers has been exacerbated by the reform and the effects of the pandemic.
Accounting policies
The group applies International Financial Reporting Standards (IFRS) and interpretations from IFRIC, as adopted by the European Union, the Swedish Financial Reporting Board's standard RFR 1 Supplementary Accounting Rules for Groups and related interpretations and the Swedish Annual Accounts Act.
This interim report has been prepared according to IAS 34 Interim Financial Reporting and the Swedish Annual Accounts Act and should be read together with the annual report for 2020. The most significant accounting policies under IFRS, the reporting norm applied in preparing this interim report, are set forth in Note C1 on pages 61-65 of the annual report for 2020, which were applied to the preparation of this interim report.
The interim information on pages 1-14 is an integrated part of this financial report. The parent company's financial statements are prepared in accordance with the Swedish Annual Accounts Act and the Swedish Financial Reporting Board's recommendation, RFR 2 Accounting for Legal Entities.
The interim report has not been reviewed by the company's auditors. This English report is an unofficial translation. In case of any discrepancy between the English version and the Swedish version, the Swedish text shall prevail.
Outlook
Attendo does not publish forecasts.
Danderyd, on February 10, 2022
Martin Tivéus
President and CEO
Financial reports
Consolidated Income Statement
| Q4 | Jan-Dec | |||
|---|---|---|---|---|
| SEKm | 2021 | 2020 | 2021 | 2020 |
| Net sales | 3,338 | 3,065 | 12,867 | 12,288 |
| Other operating income | 5 | 8 | 24 | 73 |
| Total revenue | 3,343 | 3,073 | 12,891 | 12,361 |
| Personnel costs | -2,294 | -2,052 | -8,709 | -8,285 |
| Other external costs | -538 | -512 | -2,016 | -2,023 |
| Operating profit before amortization and depreciations (EBITDA)¹ | 511 | 509 | 2,166 | 2,053 |
| Amortization and depreciation of tangible and intangible assets | -339 | -316 | -1,330 | -1,256 |
| Operating profit after depreciation (EBITA)¹ | 172 | 193 | 836 | 797 |
| Operating margin (EBITA)¹, % | 5.2 | 6.3 | 6.5 | 6.5 |
| Amortization of acquisition related intangible assets | -13 | -31 | -81 | -124 |
| Operating profit (EBIT), excluding items affecting comparability | 159 | 162 | 755 | 673 |
| Operating margin (EBIT), excluding items affecting comparability, % | 4.8 | 5.3 | 5.9 | 5.5 |
| Items affecting comparability | - | 6 | - | -955 |
| Operating profit (EBIT) | 159 | 168 | 755 | -282 |
| Operating margin (EBIT), % | 4.8 | 5.5 | 5.9 | -2.3 |
| Net financial items | -159 | -164 | -652 | -644 |
| Profit before tax | - | 4 | 103 | -926 |
| Income tax | -8 | - | -44 | 22 |
| Profit for the period | -8 | 4 | 59 | -904 |
| Profit margin, % | -0.2 | 0.1 | 0.5 | -7.4 |
| Profit for the period attributable to the parent company shareholders | -9 | 3 | 56 | -906 |
| Profit for the period attributable to non-controlling interest | 1 | 1 | 3 | 2 |
| Basic earnings per share, SEK | -0.06 | 0.02 | 0.35 | -5.63 |
| Diluted earnings per share, SEK | -0.06 | 0.02 | 0.35 | -5.63 |
| Average number of shares outstanding, basic, thousands | 160,913 | 160,913 | 160,913 | 160,904 |
| Average number of shares outstanding, diluted, thousands | 160,929 | 160,924 | 160,930 | 160,920 |
Consolidated Statement of Comprehensive Income
| Q4 | Jan-Dec | ||||
|---|---|---|---|---|---|
| SEKm | 2021 | 2020 | 2021 | 2020 | |
| Profit for the period | -8 | 4 | 59 | -904 | |
| Other comprehensive income for the period | |||||
| Items that will not be reclassified to profit or loss | |||||
| Remeasurements of defines benefit pension plans, net of tax | 11 | 2 | 5 | -8 | |
| Items that may be reclassified to profit or loss | |||||
| Exchange rate differences on translating foreign operations attributable to the | |||||
| parent company shareholders | 4 | -69 | 26 | -56 | |
| Other comprehensive income for the period | 15 | -67 | 31 | -64 | |
| Total comprehensive income for the period | 7 | -63 | 90 | -968 | |
| Total comprehensive income attributable to the parent company shareholders | 6 | -64 | 87 | -970 | |
| Total comprehensive income attributable to non-controlling interest | 1 | 1 | 3 | 2 |
Consolidated Balance Sheet
| SEKm | 31 Dec 2021 | 31 Dec 2020 |
|---|---|---|
| ASSETS | ||
| Non-current assets | ||
| Goodwill | 6,878 | 6,644 |
| Other intangible assets | 478 | 493 |
| Equipment | 538 | 562 |
| Right-of-use assets | 10,535 | 9,709 |
| Financial assets | 434 | 410 |
| Total non-current assets | 18,863 | 17,818 |
| Current assets | ||
| Trade receivables | 1,312 | 1,039 |
| Other current assets | 370 | 481 |
| Cash and cash equivalents | 513 | 716 |
| 2,195 | 2,236 | |
| Assets held for sale | 18 | 18 |
| Total current assets | 2,213 | 2,254 |
| Total assets | 21,076 | 20,072 |
| EQUITY and LIABILITIES | ||
| Equity | ||
| Equity attributable to the parent company shareholders | 4,932 | 4,849 |
| Non-controlling interest | 25 | 22 |
| Total equity | 4,957 | 4,871 |
| Non-current liabilities | ||
| Liabilities to credit institutions | 2,069 | 2,246 |
| Long-term lease liabilities¹ | 10,739 | 9,811 |
| Provisions for post-employment benefits | 2 | 8 |
| Other provisions | 70 | 64 |
| Other non-current liabilities | 106 | 120 |
| Total non-current liabilities | 12,986 | 12,249 |
| Current liabilities | ||
| Liabilities to credit institutions | 1 | 0 |
| Short-term lease liabilities² | 1,068 | 919 |
| Trade payables | 425 | 358 |
| Short-term provisions | 53 | 117 |
| Other current liabilities | 1,582 | 1,554 |
| 3,129 | 2,948 | |
| Liabilities held for sale | 4 | 4 |
| Total current liabilities | 3,133 | 2,952 |
| Total equity and liabilities | 21,076 | 20,072 |
1) Long-term lease liabilities include car leases amounting to SEK 11m (16m).
2) Short-term lease liabilities include car leases amounting to SEK 20m (19m).
| Consolidated Cash Flow Statement | ||
|---|---|---|
| ---------------------------------- | -- | -- |
| Q4 | Jan-Dec | |||
|---|---|---|---|---|
| Operational cash flow (alternative performance measure), SEKm | 2021 | 2020 | 2021 | 2020 |
| Operating profit (EBITA)¹ | 172 | 193 | 836 | 797 |
| Depreciation and amortization of tangible and intangible assets | 339 | 316 | 1,330 | 1,256 |
| Changes in working capital | 98 | 47 | -72 | 246 |
| Paid income tax | -1 | 16 | -58 | -37 |
| Other non-cash items | - | -10 | -26 | 15 |
| Cash flow after changes in working capital | 608 | 562 | 2,010 | 2,277 |
| Investments on tangible and intangible assets | -42 | -50 | -170 | -345 |
| Divestments of tangible and intangible assets | -6 | 10 | 19 | 26 |
| Operating cash flow | 560 | 522 | 1,859 | 1,958 |
| Interest received/paid | -12 | -24 | -51 | -73 |
| Interest expense for lease liabilities of real estate | -146 | -141 | -581 | -559 |
| Repayment of lease liabilities | -249 | -225 | -978 | -898 |
| Free cash flow | 153 | 132 | 249 | 428 |
| Net change in assets and liabilities held for sale | - | - | 2 | 196 |
| Acquisition of operations | - | 6 | -263 | -114 |
| Divestment of subsidiaries | - | -9 | -1 | -22 |
| Warrants | - | - | 2 | 2 |
| Repayment of loans | - | -250 | -300 | -475 |
| New borrowings | 100 | 72 | 100 | 199 |
| Total cash flow | 253 | -49 | -211 | 214 |
| Cash and cash equivalents at the beginning of the period | 258 | 784 | 716 | 523 |
| Effect of exchange rate changes on cash | 2 | -19 | 8 | -21 |
| Cash and cash equivalents at the end of the period | 513 | 716 | 513 | 716 |
| Q4 | Jan-Dec | ||||
|---|---|---|---|---|---|
| Cash flow according to IFRS, SEKm | 2021 | 2020 | 2021 | 2020 | |
| Cash flow from operations | 450 | 397 | 1,378 | 1,645 | |
| Cash flow from investing activities | -48 | -43 | -413 | -259 | |
| Cash flow from financing activities | -149 | -403 | -1,176 | -1,172 | |
| Total cash flow | 253 | -49 | -211 | 214 |
1) Excluding items affecting comparability
Consolidated Statement of Changes in Equity
| SEKm | 31 Dec 2021 | 31 Dec 2020 |
|---|---|---|
| Opening balance | 4,871 | 5,831 |
| Total comprehensive income attributable to: | ||
| The parent company shareholders | 87 | -970 |
| Non-controlling interest | 3 | 2 |
| Transactions with owners | ||
| Warrants | 2 | 2 |
| Share-savings plan | 1 | - |
| Total transactions with owners | 3 | 2 |
| Transactions with non-controlling interest | -7 | -14 |
| Equity attributable to the parent company shareholders | 4,932 | 4,849 |
| Non-controlling interests | 25 | 22 |
| Closing balance | 4,957 | 4,871 |
Segment in Summary
| Other and | ||||||||
|---|---|---|---|---|---|---|---|---|
| Scandinavia Finland |
eliminations | Group | ||||||
| Q4 | Q4 | Q4 | Q4 | Q4 | Q4 | Q4 | Q4 | |
| SEKm | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 |
| Net sales | 1,584 | 1,475 | 1,754 | 1,590 | - | - | 3,338 | 3,065 |
| - Net sales, own operations | 1,218 | 1,115 | 1,739 | 1,553 | - | - | 2,957 | 2,668 |
| - Net sales, outsourcing | 366 | 360 | 15 | 37 | - | - | 381 | 397 |
| Lease adjusted EBITA¹ | 105 | 112 | -24 | -15 | -16 | -10 | 65 | 87 |
| Lease adjusted operating margin (EBITA), % | 6.7 | 7.6 | -1.4 | -0.9 | - | - | 2.0 | 2.8 |
| Operating profit (EBITA)¹ | 151 | 155 | 37 | 48 | -16 | -10 | 172 | 193 |
| Operating margin (EBITA)¹, % | 9.6 | 10.5 | 2.1 | 3.0 | - | - | 5.2 | 6.3 |
1) Excluding items affecting comparability.
| Other and | ||||||||
|---|---|---|---|---|---|---|---|---|
| Scandinavia | Finland | eliminations | Group | |||||
| SEKm | Jan-Dec 2021 |
Jan-Dec 2020 |
Jan-Dec 2021 |
Jan-Dec 2020 |
Jan-Dec 2021 |
Jan-Dec 2020 |
Jan-Dec 2021 |
Jan-Dec 2020 |
| Net sales | 6,037 | 6,027 | 6,830 | 6,261 | - | - | 12,867 | 12,288 |
| - Net sales, own operations | 4,632 | 4,425 | 6,772 | 6,102 | - | - | 11,404 | 10,527 |
| - Net sales, outsourcing | 1,405 | 1,602 | 58 | 159 | - | - | 1,463 | 1,761 |
| Lease adjusted EBITA¹ Lease adjusted operating margin (EBITA)¹, % |
428 7.1 |
481 8.0 |
43 0.6 |
-45 -0.7 |
-70 - |
-61 - |
400 3.1 |
375 3.1 |
| Operating profit (EBITA)¹ Operating margin (EBITA)¹, % |
611 10.1 |
658 10.9 |
296 4.3 |
200 3.2 |
-70 - |
-61 - |
836 6.5 |
797 6.5 |
1) Excluding items affecting comparability.
Net Financial Items
| Q4 | Jan-Dec | ||||
|---|---|---|---|---|---|
| SEKm | 2021 | 2020 | 2021 | 2020 | |
| Net interest expense (excluding lease liabilities for real estate) | -7 | -13 | -36 | -57 | |
| Interest expense, lease liabilities for real estate | -146 | -141 | -581 | -559 | |
| Other | -6 | -10 | -35 | -28 | |
| Net financial items | -159 | -164 | -652 | -644 |
Investments
| Q4 | Jan-Dec | ||||
|---|---|---|---|---|---|
| SEKm | 2021 | 2020 | 2021 | 2020 | |
| Investments | |||||
| Investments in intangible assets | 4 | 5 | 28 | 13 | |
| Investments in tangible assets | 38 | 46 | 142 | 333 | |
| Divestments of tangible and intangible assets | 6 | -11 | -19 | -27 | |
| Total net investments | 48 | 40 | 151 | 319 | |
| Intangible assets acquired through business combination | |||||
| Goodwill | 4 | 32 | 208 | 129 | |
| Customer relations | - | 25 | 47 | 82 | |
| Other | - | 0 | - | 0 | |
| Total intangible assets acquired through business combination | 4 | 57 | 255 | 211 | |
| Financial Assets and Liabilities | |||||
| SEKm | 31 Dec 2021 | 31 Dec 2020 |
Financial Assets and Liabilities
| ASSETS | ||
|---|---|---|
| Financial assets measured at fair value | ||
| Trade receivables | 1,312 | 1,039 |
| Cash and cash equivalents | 513 | 716 |
| Total financial assets | 1,825 | 1,755 |
| LIABILITIES Financial liabilities at fair value through profit or loss |
||
| 0 | ||
| Contingent considerations | - | |
| Köpoption från innehav utan bestämmande inflytande | 21 | 14 |
| Financial liabilities measured at amortised cost | ||
| Borrowings | 2,070 | 2,246 |
| Lease liabilities | 11,807 | 10,730 |
| Trade payables | 425 | 358 |
| Total financial liabilities | 14,323 | 13,348 |
The table shows the Group's significant financial assets and liabilities. Assets and liabilities recognized as loans and receivables, and other financial liabilities are valued at amortized cost. Fair value for all financial assets and liabilities are equal to the carrying value. For complete table and further information see Attendo's Annual report 2020, note C26.
Valuation technique
Level 3: The fair value of contingent considerations is based on estimated outcome from the contractual clauses in the share purchase agreements
Pledged Assets and Contingent Liabilities
| SEKm | 31 Dec 2021 | 31 Dec 2020 |
|---|---|---|
| Assets pledged as collateral | 66 | 64 |
| Contingent liabilities¹ | 2,877 | 4,615 |
1) Leases of assets not yet in use are reported in contingent liabilities. Contingent liabilities also include a potential outflow of resources to complete acquisitions of real estate and operations from a few local authorities in Finland.
Adjusted Earnings and Adjusted Earnings per Share Q4 2021
| SEKm | Reported | Acq.¹ IFRS 16² Items affecting comparability³ |
Total adj. | Adjusted earnings |
||
|---|---|---|---|---|---|---|
| Net sales | 3,338 | - | - | - | - | 3,338 |
| Other operating income | 5 | - | 1 | - | 1 | 7 |
| Operating profit before amortization and | ||||||
| depreciation (EBITDA) | 511 | - | -394 | - | -394 | 118 |
| Amortization and depreciation of tangible and | ||||||
| intangible assets | -339 | - | 287 | - | 287 | -52 |
| Operating profit (EBITA) | 172 | - | -107 | - | -107 | 65 |
| Amortization of acquisition related intangible assets | -13 | 13 | - | - | 13 | - |
| Operating profit excluding items affecting | ||||||
| comparability (EBIT) | 159 | 13 | -107 | - | -94 | 65 |
| Items affecting comparability | - | - | - | - | - | - |
| Operating profit (EBIT) | 159 | 13 | -107 | - | -94 | 65 |
| Net financial items | -159 | - | 146 | - | 146 | -13 |
| Profit before tax (EBT) | - | 13 | 38 | - | 52 | 52 |
| Income tax | -8 | -3 | -7 | - | -10 | -18 |
| Profit for the period | -8 | 11 | 31 | - | 42 | 34 |
| Profit for the period attributable to: | ||||||
| The parent company shareholders | -9 | 11 | 31 | - | 42 | 33 |
| Non-controlling interests | 1 | - | - | - | - | 1 |
| Average number of shares outstanding, diluted, | ||||||
| thousands | 160,929 | 160,929 | 160,929 | 160,929 | 160,929 | 160,929 |
| Earnings per share diluted, SEK | -0.06 | 0.07 | 0.19 | - | 0.26 | 0.21 |
Adjusted Earnings and Adjusted Earnings per Share Q4 2020
| Reported | Acq.¹ IFRS 16² Items affecting | Total adj. | Adjusted | |||
|---|---|---|---|---|---|---|
| SEKm | comparability³ | earnings | ||||
| Net sales | 3,065 | - | - | - | - | 3,065 |
| Other operating income | 8 | - | -1 | - | -1 | 7 |
| Operating profit before amortization and | ||||||
| depreciation (EBITDA) | 509 | - | -367 | - | -367 | 142 |
| Amortization and depreciation of tangible and | ||||||
| intangible assets | -316 | - | 261 | - | 261 | -55 |
| Operating profit (EBITA) | 193 | - | -106 | - | -106 | 87 |
| Amortization of acquisition related intangible assets | -31 | 31 | - | - | 31 | - |
| Operating profit excluding items affecting | ||||||
| comparability (EBIT) | 162 | 31 | -106 | - | -75 | 87 |
| Items affecting comparability | 6 | - | -1 | -5 | -6 | - |
| Operating profit (EBIT) | 168 | 31 | -107 | -5 | -81 | 87 |
| Net financial items | -164 | - | 141 | - | 141 | -23 |
| Profit before tax (EBT) | 4 | 31 | 34 | -5 | 60 | 64 |
| Income tax | - | -6 | -6 | - | -12 | -12 |
| Profit for the period | 4 | 25 | 28 | -5 | 48 | 52 |
| Profit for the period attributable to: | ||||||
| The parent company shareholders | 3 | 25 | 28 | -5 | 48 | 51 |
| Non-controlling interests | 1 | - | - | - | - | 1 |
| Average number of shares outstanding, diluted, | ||||||
| thousands | 160,924 | 160,924 | 160,924 | 160,924 | 160,924 | 160,924 |
| Earnings per share diluted, SEK | 0.02 | 0.16 | 0.17 | -0.03 | 0.29 | 0.31 |
Adjusted Earnings and Adjusted Earnings per Share Jan-Dec 2021
| Reported | Acq.¹ IFRS 16² Items affecting | Total adj. | Adjusted | |||
|---|---|---|---|---|---|---|
| SEKm | comparability³ | earnings | ||||
| Net sales | 12,867 | - | - | - | - | 12,867 |
| Other operating income | 24 | - | - | - | - | 24 |
| Operating profit before amortization and | ||||||
| depreciation (EBITDA) | 2,166 | - | -1,558 | - | -1,558 | 608 |
| Amortization and depreciation of tangible and | ||||||
| intangible assets | -1,330 | - | 1,124 | - | 1,124 | -207 |
| Operating profit (EBITA) | 836 | - | -436 | - | -436 | 400 |
| Amortization of acquisition related intangible assets | -81 | 81 | - | - | 81 | - |
| Operating profit excluding items affecting | ||||||
| comparability (EBIT) | 755 | 81 | -436 | - | -355 | 400 |
| Items affecting comparability | - | - | - | - | - | - |
| Operating profit (EBIT) | 755 | 81 | -436 | - | -355 | 400 |
| Net financial items | -652 | - | 581 | - | 581 | -71 |
| Profit before tax (EBT) | 103 | 81 | 145 | - | 226 | 329 |
| Income tax | -44 | -16 | -28 | - | -44 | -88 |
| Profit for the period | 59 | 65 | 117 | - | 182 | 241 |
| Profit for the period attributable to: | ||||||
| The parent company shareholders | 56 | 65 | 117 | - | 182 | 238 |
| Non-controlling interests | 3 | - | - | - | - | 3 |
| Average number of shares outstanding, diluted, | ||||||
| thousands | 160,930 | 160,930 | 160,930 | 160,930 | 160,930 | 160,930 |
| Earnings per share diluted, SEK | 0.35 | 0.40 | 0.73 | - | 1.13 | 1.48 |
Adjusted Earnings and Adjusted Earnings per Share Jan-Dec 2020
| Reported | Acq.¹ IFRS 16² Items affecting | Total adj. | Adjusted | |||
|---|---|---|---|---|---|---|
| SEKm | comparability³ | earnings | ||||
| Net sales | 12,288 | - | - | - | - | 12,288 |
| Other operating income | 73 | - | - | - | - | 73 |
| Operating profit before amortization and | ||||||
| depreciation (EBITDA) | 2,053 | - | -1,454 | - | -1,454 | 599 |
| Amortization and depreciation of tangible and | ||||||
| intangible assets | -1,256 | - | 1,032 | - | 1,032 | -224 |
| Operating profit (EBITA) | 797 | - | -422 | - | -422 | 375 |
| Amortization of acquisition related intangible assets | -124 | 124 | - | - | 124 | - |
| Operating profit excluding items affecting | ||||||
| comparability (EBIT) | 673 | 124 | -422 | - | -298 | 375 |
| Items affecting comparability | -955 | - | 134 | 821 | 955 | - |
| Operating profit (EBIT) | -282 | 124 | -288 | 821 | 657 | 375 |
| Net financial items | -644 | - | 559 | - | 559 | -85 |
| Profit before tax (EBT) | -926 | 124 | 271 | 821 | 1,216 | 290 |
| Income tax | 22 | -25 | -54 | - | -79 | -57 |
| Profit for the period | -904 | 99 | 217 | 821 | 1,137 | 233 |
| Profit for the period attributable to: | ||||||
| The parent company shareholders | -906 | 99 | 217 | 821 | 1,137 | 231 |
| Non-controlling interests | 2 | - | - | - | - | 2 |
| Average number of shares outstanding, diluted, | ||||||
| thousands | 160,920 | 160,920 | 160,920 | 160,920 | 160,920 | 160,920 |
| Earnings per share diluted, SEK | -5.63 | 0.61 | 1.35 | 5.10 | 7.06 | 1.43 |
Key Data
| Q4 | Jan-Dec | ||||
|---|---|---|---|---|---|
| 2021 | 2020 | 2021 | 2020 | ||
| Organic growth | % | 5.4 | 4.8 | 4.4 | 4.4 |
| Acquired growth | % | 4.5 | -2.5 | 2.2 | -0.7 |
| Change in currencies | % | -0.9 | -1.9 | -1.9 | -0.7 |
| Operating margin (EBITA margin) r12¹ | % | - | - | 6.5 | 6.5 |
| Lease adjusted operating margin (lease adjusted EBITA margin) r12¹ | % | - | - | 3.1 | 3.1 |
| Working capital | SEKm | - | - | -379 | -508 |
| Return on capital employed | % | - | - | 4.1 | 3.7 |
| Net debt to equity ratio | times | - | - | 2.7 | 2.5 |
| Equity to asset ratio | % | - | - | 24 | 24 |
| Net debt/EBITDA r12¹ | times | - | - | 6.2 | 6.0 |
| Lease adjusted net debt / Lease adjusted EBITDA r12¹ | times | - | - | 2.6 | 2.6 |
| Free cash flow | SEKm | 153 | 132 | 249 | 428 |
| Net investments | SEKm | -48 | -40 | -151 | -319 |
| Average number of employees | 19,303 | 17,523 | 19,041 | 18,178 | |
| Key data per share | |||||
| Earnings per share, basic | SEK | -0.06 | 0.02 | 0.35 | -5.63 |
| Earnigns per share, diluted | SEK | -0.06 | 0.02 | 0.35 | -5.63 |
| Adjusted earnings per share, diluted | SEK | 0.21 | 0.31 | 1.48 | 1.43 |
| Equity per share, basic | SEK | - | - | 30.65 | 30.14 |
| Equity per share, diluted | SEK | - | - | 30.65 | 30.13 |
| Average number of shares outstanding, basic | thousands | 160,913 | 160,913 | 160,913 | 160,904 |
| Average number of shares outstanding, diluted | thousands | 160,929 | 160,924 | 160,930 | 160,920 |
| Number of shares, end of period | thousands | 161,387 | 161,387 | 161,387 | 161,387 |
| Number of treasury shares, end of period | thousands | 474 | 474 | 474 | 474 |
| Number of shares outstanding, end of period | thousands | 160,913 | 160,913 | 160,913 | 160,913 |
Quarterly Data
| SEKm | Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 | |||||||
|---|---|---|---|---|---|---|---|---|
| Total net sales | 3,128 | 3,112 | 2,983 | 3,065 | 3,062 | 3,207 | 3,260 | 3,338 |
| - Net sales, own operations | 2,628 | 2,627 | 2,604 | 2,668 | 2,700 | 2,849 | 2,897 | 2,957 |
| - Net sales, outsourcing | 500 | 485 | 379 | 397 | 362 | 358 | 362 | 381 |
| Total net sales | 3,128 | 3,112 | 2,983 | 3,065 | 3,062 | 3,207 | 3,260 | 3,338 |
| - Net sales, Scandinavia | 1,594 | 1,548 | 1,410 | 1,475 | 1,447 | 1,489 | 1,516 | 1,584 |
| - Net sales, Finland | 1,534 | 1,564 | 1,573 | 1,590 | 1,615 | 1,718 | 1,744 | 1,754 |
| Lease adjusted operating profit (EBITDA) Lease adjusted operating margin (EBITDA |
141 | 98 | 218 | 142 | 125 | 104 | 261 | 118 |
| margin), % | 4.5 | 3.2 | 7.3 | 4.6 | 4.1 | 3.2 | 8.0 | 3.5 |
| Lease adjusted operating profit (EBITA) Lease adjusted operating margin (EBITA |
84 | 42 | 162 | 87 | 75 | 53 | 208 | 65 |
| margin), % | 2.7 | 1.4 | 5.4 | 2.8 | 2.4 | 1.7 | 6.4 | 2.0 |
| Operating profit (EBITDA) | 492 | 471 | 581 | 509 | 502 | 496 | 657 | 511 |
| Operating margin (EBITDA margin), % | 15.7 | 15.1 | 19.5 | 16.6 | 16.4 | 15.5 | 20.2 | 15.3 |
| Operating profit (EBITA) | 182 | 153 | 269 | 193 | 183 | 162 | 319 | 172 |
| Operating margin (EBITA margin), % | 5.8 | 4.9 | 9.0 | 6.3 | 6.0 | 5.1 | 9.8 | 5.2 |
| Profit for the period | 3 | -975 | 64 | 4 | -9 | -19 | 95 | -8 |
| Profit margin, % | 0.1 | -31.3 | 2.1 | 0.1 | -0.3 | -0.6 | 2.9 | -0.2 |
| Earnings per share basic, SEK | 0.02 | -6.06 | 0.40 | 0.02 | -0.06 | -0.12 | 0.58 | -0.06 |
| Earnings per share diluted, SEK | 0.02 | -6.06 | 0.40 | 0.02 | -0.06 | -0.12 | 0.58 | -0.06 |
| Adjusted earnings per share diluted, SEK | 0.37 | 0.11 | 0.64 | 0.32 | 0.26 | 0.19 | 0.83 | 0.21 |
| Average number of employees | 17,950 | 18,659 | 18,514 | 17,523 | 18,012 | 18,518 | 20,104 | 19,303 |
| Operational data | ||||||||
| Number of units in operation¹ | 706 | 709 | 700 | 707 | 716 | 716 | 716 | 710 |
| Number of beds in homes² | 20,391 | 20,708 | 20,107 | 20,349 | 20,852 | 20,858 | 20,935 | 21,093 |
| Occupancy in homes, %² | 82 | 80 | 81 | 81 | 81 | 83 | 83 | 84 |
| Number of beds under construction³ | 1,423 | 1,110 | 1,228 | 1,036 | 782 | 608 | 449 | 433 |
| Number of opened beds (r12)³ | 2,186 | 2,042 | 1,630 | 1,349 | 955 | 710 | 931 | 832 |
1) All units in all contract models and segments.
2) All homes.
3) Own homes.
Parent Company Income Statement
| Q4 | Jan-Dec | ||||
|---|---|---|---|---|---|
| SEKm | 2021 | 2020 | 2021 | 2020 | |
| Net sales | 4 | 3 | 15 | 13 | |
| Personnel costs | -8 | -6 | -29 | -28 | |
| Other external costs | -3 | -3 | -11 | -10 | |
| Operating profit | -7 | -6 | -25 | -25 | |
| Net financial items | 508 | -2 | 502 | -9 | |
| Profit after financial items | 501 | -8 | 477 | -34 | |
| Group contributions | 50 | 54 | 50 | 54 | |
| Profit before tax | 551 | 46 | 527 | 20 | |
| Income tax | -4 | -5 | -4 | -5 | |
| Profit for the period | 547 | 41 | 523 | 15 | |
| Profit for the period corresponds to total comprehensive income. | |||||
| Parent Company Balance Sheet | |||||
| SEKm | 31 Dec 2021 | 31 Dec 2020 |
Parent Company Balance Sheet
| ASSETS | ||
|---|---|---|
| Non-current assets | ||
| Shares in subsidiaries | 6,494 | 6,494 |
| Total non-current assets | 6,494 | 6,494 |
| Current assets | ||
| Receivables to group companies | 50 | 54 |
| Other receivables | 2 | 1 |
| Cash and cash equivalents | 0 | 0 |
| Total current assets | 52 | 55 |
| Total assets | 6,546 | 6,549 |
| EQUITY AND LIABILITIES | ||
| Equity | 6,535 | 6,011 |
| Current liabilities | ||
| Liabilities to group companies | - | 525 |
| Other liabilities | 11 | 13 |
| Total current liabilities | 11 | 538 |
| Total equity and liabilities | 6,546 | 6,549 |
Attendo's operations
Attendo is the leading private provider of care services in the Nordics. The company has operations in Sweden, Finland and Denmark. Attendo is the largest private care provider in Sweden and Finland. Attendo is a locally based company and has more than 700 units in operation in about 300 municipalities. The company has about 27,000 employees. With the vision of empowering the individual, Attendo provides services within care for older people, care for people with disabilities, social psychiatry and care for individuals and relatives.
Attendo provides services through two business areas, Attendo Scandinavia and Attendo Finland.
Attendo provides care services through two contract models:
- Own operations, where Attendo provides services in own controlled units/premises or provides home care in customer choice models. Attendo has own units within care for older people, people with disabilities, social psychiatry and care for individuals and relatives.
- Outsourcing operations, where Attendo provides services in publicly controlled units/premises or provides home care services based on outsourcing contracts. Attendo has outsourced units for care for older people, care for people with disabilities and care for individuals and relatives.
Local authorities (mainly municipalities) are usually the contracting authorities for a large majority of Attendo's service offerings, but contract types and duration of contracts vary depending on the contract model and service offering. Own operations are normally based on framework agreements and outsourcing operations are based on outsourcing contracts, following a tender process. The contract period is typically 2-5 years.
Definitions of key data and alternative performance measures (APM)
Explanations of financial measures
| Acquired growth (APM) | The net between the increase in the company's net sales from businesses and operations acquired during the past 12 months and loss of net sales from businesses and operations divested during the past 12 months. |
|---|---|
| Adjusted earnings per share (APM) | Profit or loss for the period attributable to the parent company shareholders excluding effects from amortization of acquisition-related intangible assets as well effects from the implementation of IFRS 16 and items affecting comparability and related tax items divided by the number of outstanding shares after dilution. |
| Lease adjusted EBITA (APM) | See the definition of operating profit (EBITA) below. Lease adjusted operating profit (EBITA) is operating profit according to the previous reporting standard IAS 17, i.e. excluding the effects of the implementation of IFRS 16. Car leases were reported as finance leases under the previous standard. Consequently, it is the effects of leases of real estate under IFRS 16 that differentiate operating profit from lease adjusted operating profit. See the tables adjusted earnings and adjusted earnings per share for more information. |
| Lease adjusted EBITDA (APM) | See the definition of operating profit (EBITDA) below. Lease adjusted operating profit (EBITDA) is operating profit according to the previous accounting standard IAS 17, i.e., excluding the effects of the implementation of IFRS 16. Car leases were reported as finance leases under the previous standard. Consequently, it is the effects of leases of real estate under IFRS 16 that differentiate operating profit from lease adjusted operating profit. See the tables adjusted earnings and adjusted earnings per share for more information. |
| Lease adjusted net debt (APM) | See the definition of net debt below. Lease adjusted net debt is net debt according to the previous reporting standard IAS 17, i.e., excluding the IFRS 16 effect on lease liabilities attributable to right of-use assets for real estate. See the table showing net debt calculation for more information. |
| Lease adjusted net debt / lease adjusted EBITDA |
Lease adjusted net debt in relation to lease adjusted EBITDA r12. |
| Lease adjusted operating margin (EBITA) (APM) |
Lease adjusted operating profit (EBITA) divided by net sales. |
| Lease adjusted operating margin (EBITDA) (APM) |
Lease adjusted operating profit (EBITDA) divided by net sales. |
| Capital employed | Equity plus interest-bearing liabilities and provisions for post-employment benefits. |
| Cash and cash equivalents | Cash and bank balances, short term investments and derivatives with a positive fair value. |
| Earnings per share | Profit or loss for the period attributable to the parent company shareholders divided by average shares outstanding. |
| Equity/assets ratio | Equity divided by total assets. |
| Equity per share | Equity attributable to the parent company shareholders divided by average shares outstanding. |
| Free cash flow (APM) | Free cash flow is a measure of the cash and cash equivalents the group generates in operating activities and investing activities. The performance measure is defined as operational cash flow after changes in working capital, cash flow from investments in and divestments of tangible and intangible assets, as well as received/paid interest, interest expense for lease liabilities of real estate and repayment of lease liabilities according to IFRS 16. See the Consolidated cash flow table for reconciliation. |
| Items affecting comparability | Items whose effects on profit are important to pay attention to when profit for the period is compared with earlier periods, such as significant impairment losses and other significant, non recurring costs or income. |
| Net debt (APM) | Net debt is a way of describing the group's indebtedness and its ability to repay its debt with cash and cash equivalents if all debts were to be due for payment today. Net debt is defined as interest-bearing liabilities plus provisions for post-employment benefits minus cash and cash equivalents. Net debt is presented both including and excluding lease liabilities attributable to right-of-use assets for real estate. See the section Financial position in this report for a reconciliation of net debt. |
| Net debt / EBITDA | Net debt divided by EBITDA r12. |
| Net debt to equity ratio | Net debt divided by equity. |
|---|---|
| Net investments | The net of investments in and divestments of tangible and intangible assets, excluding acquisitions and divestment of operations as well as investments in and divestments of assets held for sale. |
| Organic growth (APM) | Attendo reports organic growth as a performance measure to show underlying sales development excluding acquisitions and currency effects. The performance measure is calculated as sales growth excluding acquisitions and changes in exchange rates. See Note C35 in the 2020 annual report for a reconciliation of the performance measure on a full year basis. |
| Operating margin (EBIT margin) | Operating profit or loss (EBIT) divided by net sales. Operating margin (EBIT margin) is presented including and excluding items affecting comparability. |
| Operating margin (EBITA margin) | Operating profit (EBITA) divided by net sales. |
| Operating profit (EBIT) (APM) | Attendo reports operating profit (EBIT) as a performance measure because it shows the development of operating activities independent of financing. Operating profit (EBIT) refers to profit before financial items and tax. Operating profit (EBIT) is presented including and excluding items affecting comparability. See the Consolidated income statement for a reconciliation of EBIT. |
| Operating profit (EBITA) (APM) | Operating profit (EBITA) is used as a performance measure because it shows the development of operating activities without the effect of amortization and impairments of intangible assets from acquired companies and independently of financing. Operating profit (EBITA) refers to profit before amortization of acquisition-related intangible assets, financial items and tax. Operating profit (EBITA) is excluding items affecting comparability. See the Consolidated income statement for a reconciliation of EBITA. |
| Operating profit (EBITDA) (APM) | Attendo reports operating profit (EBITDA) as a performance measure because it shows the development of operating activities independent of financing and investments. Operating profit (EBITDA) refers to profit or loss before depreciation, amortization and impairments. Operating profit (EBITDA) is excluding items affecting comparability. See the Consolidated income statement for a reconciliation of EBITDA. |
| Profit (-loss) for the period | Profit or loss for the period attributable to parent company shareholders and non-controlling interest. |
| Profit margin | Profit or loss for the period divided by net sales. |
| r12 "rolling 12 months" | The sum of the period's past 12 months. |
| Return on capital employed (APM) | Attendo reports return on capital employed because it shows profits in relation to the capital used in operations. The definition of return on capital employed is operating profit (EBIT) excluding items affecting comparability for the past 12 months divided by average capital employed. |
| Working capital (APM) | Working capital is a key performance measurement for optimising cash generation. The performance measure is defined as current assets excluding cash and cash equivalents and current interest-bearing assets minus current non-interest-bearing liabilities and provisions. Assets and liabilities held for sale are not included in working capital. See Note C35 in the 2020 annual report for a reconciliation of the performance measure on a full year basis. |
Explanations of operating measures
| CoP | Care for older people |
|---|---|
| Mature unit | Own home in care for older people, care for people with disabilities and social psychiatry opened during the calendar year of 2017 or earlier, and units in other contract models and segments in operation for more than 12 months. |
| Occupancy | The number of occupied beds divided by the number of available beds. Occupancy is a weighted average in the last month of each reporting period. |
INFORMATION TO SHAREHOLDERS AND ANALYSTS
Financial Calendar
Annual General Meeting 26 April 2022 Interim report January-March 2022 6 May 2022 Interim report January-June 2022 21 July 2022 Interim report January-September 2022 26 October 2022
Telephone conference
A telephone conference will be held on 10 February 2022 at 10.00 (CET) with Attendo's CEO Martin Tivéus and CFO Fredrik Lagercrantz. For participation please dial in on the following number:
| SE: | +46 8 505 583 74 |
|---|---|
| FI: | +358 981 710 520 |
| UK: | +44 333 300 92 67 |
You can follow the presentation and the conference on the following page: https://tv.streamfabriken.com/attendo-q4-2021 For further information please contact:
| Fredrik Lagercrantz | Andreas Koch |
|---|---|
| CFO | Communications and IR Director |
| Phone +46 8 586 252 00 | Phone +46 70 509 77 61 |
This is information that Attendo AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above on 10 February 2022 at 08.00 CET.
Forward-looking information
This report contains forward-looking information that reflects Attendo management's current assessments and expectations on certain future circumstances and possible outcome. This type of forward-looking information involves risks and uncertainties that may significantly impact future outcome. The information is based on certain assumptions, including such attributable to general economic conditions in the company's markets and demand for the company's services.
Company number : 559026-7885
