Interim / Quarterly Report • Jul 27, 2017
Interim / Quarterly Report
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| Jan–Jun | Jan–Jun | |||||
|---|---|---|---|---|---|---|
| SEKm | Q2 2017 | Q2 2016 | Change, % | 2017 | 2016 | Change, % |
| Net sales | 2,744 | 2,525 | 9 | 5,405 | 4,997 | 8 |
| Operating profit (EBITA) | 228 | 224 | 2 | 507 | 421 | 20 |
| Operating margin (EBITA), % | 8.3 | 8.9 | - | 9.4 | 8.4 | - |
| Profit for the period | 141 | 146 | -3 | 322 | 274 | 18 |
| Earnings per share diluted, SEK | 0.88 | 0.91 | -3 | 2.00 | 1.70 | 18 |
| Operating cash flow | 262 | 157 | 67 | 438 | 300 | 46 |
| Average number of employees | 15,204 | 14,304 | 6 | 15,167 | 14,183 | 7 |
Non-IFRS financial measures are reconciled to the most directly reconcilable line items in the financial statements at the end of this report
Attendo continued to invest for future growth in the second quarter of 2017, partly by increasing the number of beds under construction and partly through a number of acquisitions. The acquisition of Mikeva strengthens Attendo's Finnish operations in care for older people while establishing a leading position in social psychiatry.
Own operations showed continued stable growth in both nursing homes and homes for people with disabilities. Attendo opened eleven own homes during the quarter, nine in Finland and two in Sweden. In Finland, construction started of 17 new homes and in Sweden of three, and at the end of the second quarter Attendo had 2,378 beds under construction.
During the second quarter, the leading Finnish care company Mikeva was acquired. The acquisition strengthens Attendo's activities in social psychiatry and care for people with disabilities, and geographically complements Attendo's offering in care for older people. In 2016, Mikeva had sales of over EUR 100m and has around 2,800 beds in operation, all under own operations. Attendo also acquired the Swedish home care operations of Humana, which strengthens Attendo's position in several regions. Attendo also established itself in the Norwegian social psychiatry market through the acquisition of Nøstret.
Net sales in Outsourcing increased compared to the second quarter of 2016, mainly as a result of the two combination contracts that began in Finland in the first quarter of 2017. Net sales in Staffing were slightly lower in the quarter compared with the corresponding period in 2016. The markets for Outsourcing and Staffing are expected to remain challenging but stable.
Profit for the second quarter increased somewhat compared with the corresponding quarter of 2016, despite negative calendar effects. The gain in profit was primarily due to continuous improvement efforts with processes and planning, as well as contributions from acquisitions. Attendo will be opening a significantly higher number of care homes in 2017 than in previous years, which is expected to have a negative impact on earnings in coming quarters.
As part of the quality work, Attendo offers a wide range of activities for its customers. During the quarter, the focus of Attendo's nursing homes has been on outdoor activities, with the recurring Attendo Fitness Walk taking place at several locations in Scandinavia. This widely appreciated exercise jog is intended to highlight the need for movement, social co-existence and being outdoors.
In summary, Attendo showed a stable quarter with continued high rate of establishment of new homes and a high level of acquisition activity, which is in line with Attendo's strategy. The expansion of care beds supports society's needs for welfare services and gives individuals access to personalised care in comfortable care homes.
Net sales increased by 8.7 percent to SEK 2,744m (2,525) in the second quarter. Adjusted for currency effects, net sales increased by 6.5 percent. Adjusted for currency effects, net sales increased in all geographical markets.
The growth is explained by new units, acquisitions, higher occupancy in own homes which were under start-up during the comparable quarter, and contractual price increases.
Net sales increased by 11.3 percent in own operations and by 6.3 percent in outsourcing operations. In staffing operations, net sales decreased by 3.1 percent.
Operating profit (EBITA) increased by 1.8 percent to SEK 228m (224) and the operating margin amounted to 8.3 percent (8.9). The profit increase is explained by better planning and improved processes, including reduced administration, acquired units, and higher occupancy in own homes which were under start-up during the comparable quarter 2016.
Several new own homes have opened since the comparable quarter and the combined result from these was negative since the operations are under start-up. The loss of profit due to ended contracts in outsourcing and staffing operations was larger than profit from new units in these contract models. The operations in integration and home care had lower profit than in the comparable quarter.
Compared with the second quarter of 2016, calendar effects, particularly Easter, had a total negative effect of approximately SEK 25m on operating profit in the second quarter. Changes in currency exchange rates had a positive effect on operating profit of SEK 6m compared to 2016.
EBIT decreased to SEK 195m (207). Amortization on acquisition-related intangible assets was SEK 16m higher than in the second quarter of 2016.
At the end of the second quarter, Attendo had a total of 574 (512) units in operation, of which 425 own units. The number of beds in operation was 13,289 (12,649), of which 9,550 in own units. Own units and beds under construction were 64 and 2,378 respectively.
Net financial items amounted to SEK -16m (-21) in the quarter, of which net interest amounted to SEK -14m (-15). Net interest improved, mainly due to a lower interest margin.
Income tax for the quarter was SEK -38m (-40), corresponding to a tax rate of 21.2 percent (21.5).
Profit for the quarter was SEK 141m (146), representing an EPS basic and diluted of SEK 0.88 (0.91).
Net sales for the half-year increased by 8.2 percent to SEK 5,405m (4,997). Adjusted for currency effects, net sales increased by 6.5 percent. Adjusted for currency effects, net sales increased in all geographical markets.
The growth is explained by new units, acquisitions, higher occupancy in own homes which were under start-up during the comparable period, and contractual price increases.
Net sales increased by 10.2 percent in own operations and by 6.8 percent in outsourcing operations. In staffing operations, net sales decreased by 2.6 percent.
Operating profit (EBITA) increased by 20.4 percent to SEK 507m (421) and the operating margin increased to 9.4 percent (8.4). The profit increase is explained mainly by the same factors as during the second quarter.
Calendar effects had a small negative impact on profit for the period compared to 2016, which is explained by the leap day in 2016. Changes in currency exchange rates had an overall positive effect on operating profit of SEK 8m compared to 2016.
EBIT increased to SEK 443m (391). Amortization on acquisition-related intangible assets was SEK 34m higher than in the comparison period 2016.
Staffing
Net financial items amounted to SEK -33m (-42) in the period, of which net interest amounted to SEK -28m (-31). The change is explained by essentially the same items described in the section of the second quarter.
Income tax amounted to SEK -88m (-75), corresponding to a tax rate of 21.5 percent (21.5).
Profit for the period was SEK 322m (274), representing an EPS basic of SEK 2.02 (1.71) and EPS diluted of SEK 2.00 (1.70).
Operating cash flow amounted to SEK 262m (157) during the second quarter, of which changes in working capital amounted to SEK 93m (18). The positive change in working capital is mainly explained by an increase in employee related liabilities during the quarter.
Cash flow from net investments amounted to SEK -54m (-44) and cash flow from assets and liabilities held for sale was SEK -171m (-). Cash flow from acquisitions was SEK -89m (-78).
Cash flow from financing activities was SEK -26m (-274), mainly as a result a dividend payment amounting to SEK 195m and of an increase of utilized credit facilities amounting to SEK 175m.
Total cash flow for the second quarter was SEK -40m (-213).
During the period January-June total operating cash flow was SEK 438m (300) and total cash flow was SEK -20m (-292).
Consolidated equity as of June 30, 2017 amounted to SEK 4,962m (4,450), which represents a diluted equity per share of SEK 30.88 (27.61).
Net debt amounted to SEK 2,923m (2,788).
| SEKm | Jun 30, 2017 |
Jun 30, 2016 |
Dec 31, 2016 |
|---|---|---|---|
| Interest-bearing liabilities | 3,549 | 3,248 | 3,364 |
| Provisions for post-employment benefits | 27 | 44 | 28 |
| Cash and cash equivalents | -653 | -504 | -670 |
| Net debt | 2,923 | 2,788 | 2,722 |
Interest-bearing liabilities, excluding provisions for post-employment benefits, amounted to SEK 3,549m (3,248) as of June 30, 2017. Liquid funds as per June 30, 2017 amounted to SEK 653m (504) and unutilized committed credit facilities amounted to SEK 1,015m (843). Utilization of credit facilities has increased with SEK 175m during the quarter.
The total number of shares amounts to 160,000,000. Attendo's holding of treasury shares amounts to 196,725, which means that the number of shares outstanding at June 30, 2017 amounted to 159,803,275.
The average number of employees in the second quarter was 15,204 (14,304).
Net sales in own operations during the second quarter amounted to SEK 1,733m (1,557). The increase was 11.3 percent, of which acquired growth was 6.9 percentage points. The increase is mainly explained by acquisitions, new homes and higher occupancy in own homes that were under start-up during the same quarter last year.
During the quarter, Attendo opened eleven homes with in total approximately 400 beds; nine homes in Finland with approximately 300 beds and two nursing homes in Sweden with approximately 100 beds. Attendo also opened a daily activity centre with twelve places for people with disabilities and a home with ten beds in individual and family care in Sweden.
Attendo has, as one of two private providers, won a tender to operate home care services in Copenhagen. In a retender, Attendo was also awarded the continued confidence to operate home care in Helsingborg.
During the quarter, Attendo acquired several operations in Finland, Sweden and Norway. For more information see the section: Significant events in the quarter.
The number of beds under construction continued to increase during this quarter and amounted to 2,378 at the end of the quarter. Construction started of several new homes, mainly nursing homes, during the quarter; 17 homes in Finland with a total of 560 beds and three homes in Sweden with a total of 70 beds.
| Own units | Total | Sweden | Finland | Norway | Denmark |
|---|---|---|---|---|---|
| Units in operation* | 425 | 221 | 193 | 2 | 9 |
| Beds in operation** | 9,550 | 3,934 | 5,472 | 84 | 60 |
| Beds under construction*** | 2,378 | 535 | 1,843 | - | - |
| Home care customers | 11,880 | 9,200 | - | 130 | 2,550 |
* All own units - including nursing homes, care homes, home care units and other units.
** Own nursing homes (CoP) and own care homes (care for people with disabilities, social psychiatry and individuals and families).
*** Own nursing homes (CoP) and own care homes (care for people with disabilities and social psychiatry).
Net sales in outsourcing operations increased by 6.3 percent to SEK 824m (775) in the second quarter. The increase in net sales is explained by newly started operations, particularly two combination contracts in Finland.
During the quarter, Attendo won new, not yet started, contracts with estimated annual net sales of approximately SEK 110m, and lost on-going, not yet ended, contracts with annual net sales of approximately SEK 280m. Attendo also received continued confidence to operate a health centre in Finland.
| Outsourcing | Total | Sweden | Finland | Norway | Denmark |
|---|---|---|---|---|---|
| Units in operations* | 128 | 88 | 34 | 5 | 1 |
| Beds in operations** | 3,739 | 2,863 | 538 | 310 | 28 |
| Home care customers | 1,150 | 470 | 680 | - | - |
* All outsourced units including nursing homes, care homes and home care units and other units.
** Nursing homes (CoP) and care homes (care for people with disabilities, social psychiatry and individuals and families).
Net sales in staffing operations in the second quarter amounted to SEK 187m (193). The decrease in net sales is explained by ended contracts.
7%
Staffing operations
Outsourcing operations
30% of Net sales Operations in Sweden, Finland, Norway and Denmark
Attendo's quality work is conducted at multiple levels in the company, but the starting point is always to focus on the individual. This means that the work taking place in our units, closest to our customers, is our most important work. During the quarter, the focus of Attendo's nursing homes has been on outdoor activities, with the recurring Attendo Fitness Walk taking place at several locations in Scandinavia.
Falls among the elderly are a major social problem. Attendo works actively to analyse the risks of older people in different everyday environments. During the second quarter, Attendo's home care service in Scandinavia launched the "Safe and Secure at Home" project, which focuses specifically on identifying risks in the domestic environments of older people. Attendo offers a special safety review to all its home care customers to ensure that the most common causes of accidents are avoided as far as possible.
The dining experience is important for Attendo, and we continuously work on developing our meal concepts based on customer needs and wishes. In May, a new kitchen was opened at Attendo Nissabogatan in Halmstad, where food will be prepared locally for the elderly at the home and for home care customers and residents of Attendo's other nursing homes in the municipality. At the inauguration, residents and relatives were invited to a real feast signed off by one of Sweden's master chefs.
Attendo regularly recognises operations within its different business areas where employees have made particularly outstanding efforts. In May, Attendo Hammarby in Västerås was named Unit of the Year within Attendo Scandinavia Care for Older People, a nursing home with consistently good reviews that Attendo has operated and developed since 1993. The equivalent award within Attendo Scandinavia Care went to Attendo Rödakorsgatan, a home for people with neuropsychiatric disabilities in Tyringe, near Hässleholm.
Attendo's quality model rests on three pillars: satisfied customers, systematic improvements and best available knowledge. Ongoing development and monitoring of the necessary procedures, processes and documentation are of great importance for the quality of all health and social care. The work is conducted by local quality coordinators with the support of specialized quality functions. Recurring quality audits are conducted by Attendo, their customers and authorities.
As one of the leading social and health care companies, Attendo is a stable employer with collective agreements, contract insurance and good opportunities for personal development. Attendo values education and encourages higher education. At the same time other experiences and that the candidate shares our core values plays a big role in recruitment. To capture how satisfied the employees are with their work and their manager, regular employee surveys are conducted. The results provide important information about what works well and what needs to be improved.
Attendo's Quality reports are available on: http://www.attendo.com/aboutattendo/focus-on-quality
The demand for Attendo's own operations offering was good, with continued high interest from Swedish local authorities needing to expand the number of beds, mainly in care for older people.
Contracted volumes in the outsourcing market for care for older people were somewhat lower than in the first quarter. Contracted volumes in care continued to decrease in relation to the previous quarter and last year, mainly as a consequence of the reduced need for beds within integration.
The Swedish government has previously appointed a commission that presented the first part of its report in November 2016. The second part of the report was presented in May 2017. If the commission's proposals were implemented they would lead to reduced diversity and lower quality in health and social care. The commission has been strongly criticised and there is no majority in the Swedish parliament to implement the proposals.
Attendo's own operations offering experienced continued high demand in Finland during the quarter. In the outsourcing market in Finland, activity remained very low during the second quarter.
During the second quarter, the Finnish constitutional committee submitted its assessment of the Social and health care reform ("SOTE"). The SOTE reform means that health and social care will be organised into 18 regions with private and public providers competing on equal terms and with the introduction of freedom of choice for citizens. As a consequence of the committee's assessment, the reform will be implemented somewhat later than the original schedule. The new start date is set to January 1, 2020 against the earlier decision of January 1, 2019. Broadly speaking, the changes do not alter the view of the reform based on Attendo's perspective. Our assessment remains that the reform as a whole is positive for Attendo's opportunity to develop its operations in Finland, not least in the field of healthcare.
Activity in the Danish market remained low. However, Attendo has won a contract that enables Attendo to operate home care in Copenhagen.
The activity in the Norwegian market remained low. During the quarter a new contract came up for tender in Stavanger.
The Swedish social and health care system is decentralized with local authorities (290 LAs) responsible for social care and regional authorities (20 RAs) providing primary and specialist health care. Attendo's payors in Sweden are LAs responsible for providing care for older people, disabled care and social care. LAs are also responsible for the financing
The Finnish health care system is decentralized with local authorities (311 LAs) providing primary health care and social care and hospital districts (20) providing specialist care to several municipalities. Attendo's payors in Finland are LAs providing primary health care and social care, and some additional private customers in dental care and occupational health care. LAs are largely responsible for public health care financing.
Attendo reached an agreement to acquire Mikeva, (Mi-Hoiva OY), a leading provider of care in Finland. The acquisition strengthens Attendo's position in social psychiatry and care for people with disabilities and geographically complements Attendo's offering in care for older people in Finland.
Mikeva was founded in 1987 and currently has around 2,300 employees at 122 units throughout Finland. The company is active in social psychiatry, care for people with disabilities and care for older people. In 2016 Mikeva had sales of EUR 101m and EBITDA of EUR 5.3m. In recent years, the company has successfully focused on growth through acquisitions and by developing its own operations. Mikeva today has approximately 2,800 beds in operation, of which approximately 300 are under start-up. In addition, a further more than 100 beds are under construction.
The agreement to acquire Mikeva was reached between Attendo AB and G Square Capital, which has owned Mikeva since 2012. The enterprise value amounted to EUR 150m. The acquisition will be financed primarily through new credit facilities. The completion of the acquisition is dependent on approval from the authorities and other customary terms.
Attendo entered an agreement to acquire Humana's home care business with operations in some ten locations in Sweden. The operations have sales of approximately SEK 250m and have a marginal impact on Attendo's earnings. The acquisition will be completed as of September 1, 2017.
On 1 April, Treklövern i Falköping AB operating one social psychiatry care home was acquired.
On 1 April, Ab Tandklinik BG Dahlbacka Hammasklinikka Oy and Tandklinik Hammasklinikka Anders Virtanen Ab Oy were acquired through an asset deal.
On 1 May, Mikkelin Palvelukoti Oy operating social psychiatry in Mikkeli, Finland, was acquired.
On 1 June, Stradivarius HVB AB that provides care for young adults in Skellefteå, was acquired.
On 1 June, Lilla Ro-Hemmet AB that operates a care home in Parainen, Finland, was acquired.
On 26 June, Attendo entered an agreement to acquire Nøstret Bo og Omsorgssenter, and Nøstret Kroksund AB that provide social psychiatry care homes in Hole, Norway. The acquisition will be consolidated as of September 1, 2017.
On April 6, Attendo held its Annual General Meeting (AGM) in Danderyd. In accordance with the Board of Directors' proposal, the AGM resolved that dividend of SEK 1.22 shall be paid to the shareholders. The payment was made in the second quarter. The AGM elected Ulf Lundahl as Chairman of the Board and resolved, amongst other, to adopt a long-term incentive program (Attendo+ 2017) directed to a number of key employees.
Attendo has transactions with two related parties, which in all material aspects consist of Attendo leasing properties from companies in which these parties are shareholders. The transactions amounted to SEK 5m (4) during the six month period. All related party transactions took place on market terms.
For further details, please refer to page 67 of Attendo's annual report 2016.
Attendo AB's main operation is to provide management services to subsidiaries within the group and to manage shares in subsidiaries. Parent company expenses mainly refer to salaries to Attendo's Executive Management, fees to the Board of Directors, and external consultancy fees.
Net sales for the period were SEK 6m (7), all referring to management services to subsidiaries. Profit after financial items was SEK -14m (-19). At the end of the period, cash and cash equivalents amounted to SEK 0m (0), shares in subsidiaries was SEK 6,494m (6,494) and non-restricted equity amounted to SEK 6,215m (6,363).
Attendo's profitability is subject to seasonal variations, weekend and holiday effects. For Attendo, public holidays as well as weekends and other 'red' calendar days have negative effects on profitability mainly as an effect of wage compensation for inconvenient working hours. For example, profitability in the first and second quarters is affected by the Easter holiday, depending on in which quarter it occurs, and the fourth quarter is affected by Christmas holidays.
On July 20, 2017 the Swedish Competition Authority announced that Attendo's acquisition of Humana's Home Care will be approved. The acquisition will be completed as of September 1, 2017.
The Finnish Competition and Consumer Authority announced on July 21, 2017 that the investigation regarding Attendo's acquisition of Mikeva continues after the first phase. Decision is expected during the autumn 2017.
Attendo conducts care and health care operations in the Nordics and are exposed to a number of different risks. Attendo divides risks in external risks, operational risks and financial risks. External risks comprise risks regarding competition, political risk, legal risk and reputational risk. Operational risks refer to risks directly linked to Attendos operations e.g. pricing and acquisitions. Financial risks are, amongst others, related to currency, interest rates and liquidity.
Risk management, i.e. the work with identifying, managing and monitoring risks is an important part of Attendo's operations and well integrated in the daily work. The risks and a description of Attendo's risk management are presented in Attendo's annual report for 2016, page 21. Attendo's assessment is that no further risks have been added.
The group applies International Financial Reporting Standards (IFRS) as adopted by the European Union, the Swedish Annual Accounts Act and the Swedish Financial Reporting Board's standard RFR 1 Supplementary Accounting Rules for Groups.
This interim report has been prepared according to IAS 34 Interim Financial Reporting and the Swedish Annual Accounts Act and shall be read together with the annual report for 2016. As of the first quarter of 2017, assets and liabilities attributable to certain property holdings are recognized as held for sale in accordance with IFRS 5. Otherwise the accounting policies adopted are consistent with those applied in the annual report for 2016.The interim information on page 1-15 is an integrated part of this financial report.
The parent company applies the Swedish Annual Accounts Act and the Swedish Financial Reporting Board's recommendation RFR 2 Accounting for Legal Entities.
This report has not been reviewed by Attendo´s auditor.
Attendo does not report any forecast.
Attendo's Annual reports are available on www.attendo.com
This is a translation of the Swedish interim report. In the event of differences the Swedish interim report shall prevail.
The Board of Directors and the CEO certify that this half year report gives a fair view of the operation, profit and financial position of the parent company and the group, and that it describes all significant risks and uncertainties related to the parent company and group.
Danderyd, on July 27, 2017
Ulf Lundahl Chairman of the Board
Mona Boström Catarina Fagerholm Tobias Lönnevall Board member Board member Board member
Anssi Soila Anitra Steen Arja Pohjamäki Board member Board member Board member Union representative
Henrik Borelius CEO and Board member
| SEKm | Q2 2017 | Q2 2016 Jan-Jun 2017 Jan-Jun 2016 Jan-Dec 2016 | |||
|---|---|---|---|---|---|
| Net sales | 2,744 | 2,525 | 5,405 | 4,997 | 10,212 |
| Other operating income | 6 | 6 | 9 | 10 | 20 |
| Total revenue | 2,750 | 2,531 | 5,414 | 5,007 | 10,232 |
| Personnel costs | -1,759 | -1,629 | -3,429 | -3,260 | -6,533 |
| Other external costs | -726 | -645 | -1,406 | -1,262 | -2,564 |
| Amortization and depreciation of tangible and intangible assets | -37 | -33 | -72 | -64 | -133 |
| Operating profit (EBITA) | 228 | 224 | 507 | 421 | 1,002 |
| Operating margin (EBITA) % | 8.3 | 8.9 | 9.4 | 8.4 | 9.8 |
| Amortization of acquisition related intangible assets | -33 | -17 | -64 | -30 | -91 |
| Operating profit (EBIT) | 195 | 207 | 443 | 391 | 911 |
| Operating margin (EBIT), % | 7.1 | 8.2 | 8,2 | 7.8 | 8.9 |
| Net financial items | -16 | -21 | -33 | -42 | -83 |
| Profit before tax | 179 | 186 | 410 | 349 | 828 |
| Income tax | -38 | -40 | -88 | -75 | -179 |
| Profit for the period | 141 | 146 | 322 | 274 | 649 |
| Profit margin % | 5.1 | 5.8 | 6.0 | 5.5 | 6.4 |
| Profit for the period attributable to the parent company | |||||
| shareholders | 141 | 146 | 322 | 274 | 649 |
| Basic earnings per share, SEK | 0,88 | 0.91 | 2.02 | 1.71 | 4.06 |
| Diluted earnings per share, SEK | 0.88 | 0.91 | 2.00 | 1.70 | 4.05 |
| Average number of shares outstanding, basic, thousands | 159,801 | 160,000 | 159,800 | 160,000 | 159,956 |
| Average number of shares outstanding, diluted, thousands | 160,763 | 161,323 | 160,668 | 161,168 | 160,405 |
| SEKm | Q2 2017 | Q2 2016 Jan-Jun 2017 Jan-Jun 2016 Jan-Dec 2016 | |||
|---|---|---|---|---|---|
| Profit for the period | 141 | 146 | 322 | 274 | 649 |
| Other comprehensive income for the period | |||||
| Items that will not be reclassified to profit or loss | |||||
| Remeasurements of defined benefit pension plans, net of tax | - | -3 | - | -8 | -1 |
| Items that may be reclassified to profit or loss | |||||
| Exchange rate differences on translating foreign operations | 21 | 36 | 16 | 51 | 83 |
| Other comprehensive income for the period | 21 | 33 | 16 | 43 | 82 |
| Total comprehensive income for the period | 162 | 179 | 338 | 317 | 731 |
| Total comprehensive income attributable to the Parent | |||||
| company shareholders | 162 | 179 | 338 | 317 | 731 |
| SEKm | Jun 30, 2017 | Jun 30, 2016 | Dec 31, 2016 |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Goodwill | 7,008 | 6,601 | 6,872 |
| Other intangible assets | 554 | 544 | 591 |
| Equipment | 439 | 417 | 438 |
| Other non-current assets | 72 | 101 | 78 |
| Total non-current assets | 8,073 | 7,663 | 7,979 |
| Current assets | |||
| Trade receivables | 944 | 832 | 955 |
| Other current assets | 460 | 500 | 324 |
| Cash and cash equivalents | 653 | 504 | 670 |
| 2,057 | 1,836 | 1,949 | |
| Assets held for Sale | 277 | - | - |
| Total current assets | 2,334 | 1,836 | 1,949 |
| Total assets | 10,407 | 9,499 | 9,928 |
| EQUITY AND LIABILITIES Equity |
4,962 | 4,450 | 4,825 |
| Non-current liabilities | |||
| Liabilities to credit institutions | 3,479 | 3,216 | 3,302 |
| Provisions for post-employment benefits | 27 | 44 | 28 |
| Other provisions | 10 | 10 | 11 |
| Other non-current liabilities | 107 | 110 | 112 |
| Total non-current liabilities | 3,623 | 3,380 | 3,453 |
| Current liabilities | |||
| Liabilities to credit institutions | 70 | 32 | 62 |
| Trade payables | 150 | 148 | 186 |
| Other current liabilities | 1,582 | 1,489 | 1,402 |
| 1,802 | 1,669 | 1,650 | |
| Liabilities for sale | 20 | - | - |
| Total current liabilities | 1,822 | 1 669 | 1,650 |
| Total equity and liabilities | 10,407 | 9,499 | 9,928 |
| Jan-Jun | Jan-Jun | Jan-Dec | |||
|---|---|---|---|---|---|
| Operational cash flow, SEKm | Q2 2017 | Q2 2016 | 2017 | 2016 | 2016 |
| Operating profit (EBITA) | 228 | 224 | 507 | 421 | 1,002 |
| Depreciation and amortization of tangible and intangible assets | 37 | 33 | 72 | 64 | 133 |
| Changes in working capital | 93 | 18 | 53 | 10 | -18 |
| Paid income tax | -35 | -74 | -97 | -102 | -140 |
| Other non-cash items | -7 | 0 | -4 | -3 | -3 |
| Cash flow after changes in working capital | 316 | 201 | 531 | 390 | 974 |
| Investments in tangible and intangible assets | -66 | -46 | -116 | -99 | -197 |
| Divestment of tangible and intangible assets | 12 | 2 | 23 | 9 | 28 |
| Operating cash flow | 262 | 157 | 438 | 300 | 805 |
| Interest received/paid | -16 | -18 | -33 | -30 | -60 |
| Free cash flow | 246 | 139 | 405 | 270 | 745 |
| Net change in assets and liabilities held for sale | -171 | - | -213 | - | - |
| Acquisition of operations | -89 | -78 | -167 | -91 | -477 |
| Warrants | -13 | - | -13 | - | -4 |
| Repurchase of own shares | - | - | - | - | -16 |
| Dividends paid | -195 | -86 | -195 | -86 | -86 |
| Repayment of loans | 7 | -188 | -12 | -385 | -590 |
| New borrowings | 175 | - | 175 | - | 290 |
| Total cash flow | -40 | -213 | -20 | -292 | -138 |
| Cash and cash equivalents at the beginning of the period | 689 | 708 | 670 | 782 | 782 |
| Effect of exchange rate changes on cash | 4 | 9 | 3 | 14 | 26 |
| Cash and cash equivalents at the end of the period | 653 | 504 | 653 | 504 | 670 |
| Jan-Jun | Jan-Jun | Jan-Dec | |||
|---|---|---|---|---|---|
| Cash flow, SEKm | Q2 2017 | Q2 2016 | 2017 | 2016 | 2016 |
| Cash flow from operations | 300 | 183 | 498 | 360 | 914 |
| Cash flow from investing activities | -314 | -122 | -473 | -181 | -646 |
| Cash flow from financing activities | -26 | -274 | -45 | -471 | -406 |
| Total cash flow | -40 | -213 | -20 | -292 | -138 |
| Jan-Jun | Jan-Jun | Jan-Dec | |
|---|---|---|---|
| SEKm | 2017 | 2016 | 2016 |
| Opening balance | 4,825 | 4,219 | 4,219 |
| Total comprehensive income | 338 | 317 | 731 |
| Transactions with owners | |||
| Warrants | -7 | - | -24 |
| Repurchase of own shares | - | - | -16 |
| Share-savings plan | 1 | - | 1 |
| Dividend | -195 | -86 | -86 |
| Total transactions with owners | -201 | -86 | -125 |
| Closing balance | 4,962 | 4,450 | 4,825 |
| Q2 2017 | ||||
|---|---|---|---|---|
| 13 | 7 | 19 | 14 | 27 |
| 53 | 39 | 97 | 85 | 170 |
| -12 | -2 | -23 | -9 | -28 |
| 54 | 44 | 93 | 90 | 169 |
| 47 | 51 | 111 | 56 | 285 |
| 356 | ||||
| - | - | - | - | 9 |
| 62 | 296 | 141 | 315 | 650 |
| 15 | 245 | 30 | Q2 2016 Jan-Jun 2017 Jan-Jun 2016 Jan-Dec 2016 259 |
For further information regarding acquisitions, see page 13.
| SEKm | Level | Jun 30, 2017 | Jun 30, 2016 |
|---|---|---|---|
| ASSETS | |||
| Loans and receivables | |||
| Trade receivables | 944 | 832 | |
| Cash and cash equivalents | 653 | 504 | |
| Total financial assets | 1,597 | 1,336 | |
| LIABILITIES | |||
| Financial liabilities at fair value through profit or loss | |||
| Contingent considerations | 3 | 100 | 35 |
| Other financial liabilities | |||
| Borrowings/financial leasing | 3,549 | 3,248 | |
| Trade payables | 150 | 148 | |
| Total financial liabilities | 3,799 | 3,431 |
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, note 23.
Level 3: The fair value of contingent considerations is based on estimated outcome from the contractual clauses in the share purchase agreements.
| SEKm | Jun 30, 2017 | Jun 30, 2016 | Dec 31, 2016 |
|---|---|---|---|
| Assets pledged as collateral | 149 | 218 | 159 |
| Contingent liabilities | - | - | - |
| Q2 2017 | Q2 2016 Jan-Jun 2017 Jan-Jun 2016 Jan-Dec 2016 | |||||
|---|---|---|---|---|---|---|
| Net sales | SEKm | 2,744 | 2 525 | 5,405 | 4,997 | 10,212 |
| Organic growth | % | 2.2 | 3.7 | 2.8 | 3.3 | 1.7 |
| Acquired growth | % | 4.3 | 1.0 | 3.7 | 1.0 | 1.7 |
| Changes in currencies | % | 2.2 | -0.4 | 1.7 | -0.5 | 0.5 |
| Operating profit (EBITA) | SEKm | 228 | 224 | 507 | 421 | 1,002 |
| Operating margin (EBITA) | % | 8.3 | 8.9 | 9,4 | 8.4 | 9,8 |
| Profit for the period | SEKm | 141 | 146 | 322 | 274 | 649 |
| Profit margin | % | 5.1 | 5.8 | 6,0 | 5.5 | 6.4 |
| Working capital | SEKm | -328 | -305 | -328 | -305 | -309 |
| Return on capital employed | % | 11.8 | 12.1 | 11,8 | 12.1 | 11.4 |
| Net debt to equity ratio | times | 0.6 | 0.6 | 0,6 | 0.6 | 0.6 |
| Equity to asset ratio | % | 48 | 47 | 48 | 47 | 49 |
| Operating cash flow | SEKm | 262 | 157 | 438 | 300 | 805 |
| Net investments | SEKm | -54 | -44 | -93 | -90 | -169 |
| Average number of employees | 15,204 | 14,304 | 15,167 | 14,183 | 14,824 | |
| Key data per share | ||||||
| Earnings per share. basic | SEK | 0.88 | 0.91 | 2.02 | 1.71 | 4.06 |
| Earnings per share. diluted | SEK | 0.88 | 0.91 | 2.00 | 1.70 | 4.05 |
| Equity per share, basic | SEK | - | - | 31.05 | 27.81 | 30.19 |
| Equity per share, diluted | SEK | - | - | 30.88 | 27.61 | 30.10 |
| Average number of shares outstanding, basic | thousands | 159,801 | 160,000 | 159,800 | 160,000 | 159,956 |
| Average number of shares outstanding, diluted | thousands | 160,763 | 161,323 | 160,668 | 161,168 | 160,405 |
| Number of shares, end of period | thousands | 160,000 | 160,000 | 160,000 | 160,000 | 160,000 |
| Number of treasury shares, end of period | thousands | 197 | - | 197 | - | 200 |
| Number of shares outstanding, end of period | thousands | 159,803 | 160,000 | 159,803 | 160,000 | 159,800 |
| SEKm | Q3 2015 | Q4 2015 | Q1 2016 | Q2 2016 | Q3 2016 | Q4 2016 | Q1 2017 | Q2 2017 |
|---|---|---|---|---|---|---|---|---|
| Total net sales | 2,455 | 2,564 | 2,472 | 2,525 | 2,568 | 2,647 | 2,661 | 2,744 |
| - Net sales, own operations | 1,415 | 1,498 | 1,511 | 1,557 | 1,603 | 1,656 | 1,648 | 1,733 |
| - Net sales, outsourcing | 810 | 805 | 769 | 775 | 777 | 787 | 825 | 824 |
| - Net sales, staffing | 230 | 261 | 192 | 193 | 188 | 204 | 188 | 187 |
| SEKm | Q3 2015 | Q4 2015 | Q1 2016 | Q2 2016 | Q3 2016 | Q4 2016 | Q1 2017 | Q2 2017 |
|---|---|---|---|---|---|---|---|---|
| Total net sales | 2,455 | 2,564 | 2,472 | 2,525 | 2,568 | 2,647 | 2,661 | 2,744 |
| - Net sales Sweden | 1,282 | 1,339 | 1,332 | 1,369 | 1,392 | 1,388 | 1,376 | 1,419 |
| - Net sales Finland | 1,051 | 1,088 | 1,009 | 1,024 | 1,038 | 1,114 | 1,145 | 1,183 |
| - Net sales Norway | 65 | 78 | 77 | 78 | 82 | 86 | 85 | 84 |
| - Net sales Denmark | 57 | 59 | 54 | 54 | 56 | 59 | 55 | 58 |
| Operating profit (EBITA) | 345 | 215 | 197 | 224 | 340 | 241 | 279 | 228 |
| Operating margin (EBITA). % | 14.1 | 8.4 | 8.0 | 8.9 | 13.2 | 9.1 | 10.5 | 8.3 |
| Profit for the period | 182 | -9 | 128 | 146 | 224 | 151 | 181 | 141 |
| Profit margin. % | 7.4 | -0.4 | 5.2 | 5.8 | 8.7 | 5.7 | 6.8 | 5.1 |
| Earnings per share basic, SEK | 1.14 | -0.06 | 0.80 | 0.91 | 1.40 | 0.94 | 1.13 | 0.88 |
| Earnings per share diluted, SEK | 1.14 | -0.06 | 0.80 | 0.91 | 1.39 | 0.94 | 1.13 | 0.88 |
| Average number of employees | 15,294 | 14,285 | 14,061 | 14,304 | 15,781 | 14,602 | 15,130 | 15,204 |
| SEKm | Q2 2017 | Q2 2016 Jan-Jun 2017 Jan-Jun 2016 Jan-Dec 2016 | |||
|---|---|---|---|---|---|
| Net sales | 3 | 3 | 6 | 7 | 12 |
| Personnel costs | -6 | -4 | -13 | -10 | -21 |
| Other external costs | -5 | -11 | -6 | -15 | -26 |
| Operating profit | -8 | -12 | -13 | -18 | -35 |
| Finance net | -0 | -1 | -1 | -1 | -2 |
| Profit after financial items | -8 | -13 | -14 | -19 | -37 |
| Group contributions | 0 | - | 0 | - | 110 |
| Profit before tax | -8 | -13 | -14 | -19 | 73 |
| Income tax | 0 | 0 | 0 | 0 | -16 |
| Profit for the period | -8 | -13 | -14 | -19 | 57 |
| SEKm | Jun 30, 2017 | Jun 30, 2016 | Dec 31, 2016 |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Shares in subsidiaries | 6,494 | 6,494 | 6,494 |
| Deferred tax asset | - | 16 | - |
| Total non-current assets | 6,494 | 6,510 | 6,494 |
| Current assets | |||
| Receivables on group companies | 5 | 7 | 114 |
| Other receivables | 3 | 2 | 2 |
| Cash and cash equivalents | 0 | 0 | 0 |
| Total current assets | 8 | 9 | 116 |
| Total assets | 6,502 | 6,519 | 6,610 |
| EQUITY AND LIABILITIES | |||
| Equity | 6,216 | 6,364 | 6,424 |
| Current liabilities | |||
| Liabilities to group companies | 272 | 140 | 165 |
| Other liabilities | 14 | 15 | 21 |
| Total current liabilities | 286 | 155 | 186 |
| Total equity and liability | 6,502 | 6,519 | 6,610 |
Interim report January- September 10 November
A telephone conference will be held today, July 27 2017 at 10.00 (CET) with Attendo's CEO Henrik Borelius and CFO Tomas Björksiöö. For participation please dial in on the following number:
SE: +46 8 566 426 65 FI: +358 9 817 104 94 UK:+44 20 30 08 98 04
Henrik Borelius CEO Tel. +46 8 586 252 00
Tomas Björksiöö CFO Tel. +46 8 586 252 00
Andreas Koch Communications and IR Director Tel. +46 70 509 77 61
The information in this report is what Attendo is required to disclose under Sweden's Securities Market Act and/or the Financial Instruments Trading Act.
This report contains forward-looking information based on current expectations of the Attendo's management. Although management deems that the expectations presented by such forward-looking information are reasonable, no guarantee can be given that these expectations will prove correct. Accordingly, the actual future outcome could vary considerably compared to what is stated in the forward-looking information, due to such factors as changed market conditions for Attendo's services and more general conditions regarding business cycles, market and competition, changes in legal requirements and other political measures, and fluctuation in exchange rates.
Vendevägen 85A 182 91 Danderyd
Tel +46 8 586 251 00 Fax +46 8 586 250 01 www.attendo.com
Company number: 559026-7885
Attendo is the leading private provider of care services in the Nordics. The company has operations in Sweden, Finland, Norway and Denmark. Attendo is the largest private provider of care for older people in Sweden and Finland, and outsourced health care in Finland. Attendo is a locally based company and has more than 500 units in operation, in more than 200 municipalities. The company has more than 20,000 employees. With the vision of empowering the individual Attendo provides services within care for older people, care for people with disabilities, individual and families and health care.
Attendo provides care and health care through three contract models:
Local authorities (mainly municipalities) are Attendo's payors for a large majority of the service offerings, but contract types and duration of contracts vary depending on service model and service offering. Own operations are based on framework agreements and outsourcing operations are based on outsourcing contracts, following a tender process. The contract period is typically 2-5 years. Staffing operations are normally based on framework agreements or direct contracts with durations of up to 4 years.
| Acquired growth | Increase in net sales related to companies or operations acquired the last 12 months. | |||
|---|---|---|---|---|
| Capital employed | Total assets less non-interest bearing liabilities. | |||
| Earnings per share | Profit for the period in relation to the average number of shares. | |||
| Equity/asset ratio | Equity as a percentage of total assets. | |||
| Equity per share | Equity in relation to the average number of shares. | |||
| Liquid funds | Cash/cash equivalents, short term investments and derivatives with a positive fair value. | |||
| Net debt | Interest bearing liabilities and provisions for post-employment benefits less liquid funds. | |||
| Net debt to equity ratio | Net debt as a percentage of total equity. | |||
| Net investments | Net of investments and disposals of intangible and tangible assets excluding acquisition related assets. Investments and disposals of assets held for sale are not included in Net investments. |
|||
| Number of shares | In order to facilitate comparisons, all key measures in the comparable periods have been calculated based on the number of shares after the listing. |
|||
| Operating cash flow | Cash flow from operations adjusted for investments and divestments of intangible and tangible assets and paid and received interest. |
|||
| Operating margin (EBIT) | Operating profit (EBIT) as a percentage of net sales. | |||
| Operating margin (EBITA) | Operating profit (EBITA) as a percentage of net sales. | |||
| Operating profit (EBIT) | Profit before net financial items and income tax. | |||
| Operating profit (EBITA) | Profit before amortization of acquisition related intangible assets, net financial items and income tax. |
|||
| Organic growth | Increase of net sales excluding acquisitions and currency effects. | |||
| Profit for the period | Profit/loss for the period attributable to parent company shareholders. | |||
| Profit margin | Profit for the period as a percentage of net sales. | |||
| Return on equity | Profit for the period (LTM) in relation to average equity. | |||
| Return on capital employed | Operating profit (EBIT) as a percentage of average capital employed. | |||
| Working capital | Current assets excluding liquid funds and interest bearing assets, less non- interest bearing current liabilities and provisions. Assets and liabilities held for sale are excluded from the working capital. |
| New unit | Unit in operation <12 months. |
|---|---|
| Existing unit | Unit in operation >12 months. |
| LA | Local Authority |
| CoP | Care for Older People |
The financial reports of the Attendo Group are prepared according to IFRS. See further information regarding accounting policies on page 15 in this interim report. According to IFRS there are only a few financial measures that are defined. As from the second quarter 2016, Attendo has applied ESMA's (European Securities and Markets Authority) new guidelines for Alternative Performance Measures.
An Alternative Performance Measure is, in short, a financial measure of historical or future profit development, financial position or cash flow that are not defined or specified in IFRS. To support the Executive Managements' and other stakeholders analysis of the Groups development, Attendo presents some financial measures not defined in IFRS. This information is complementary information to IFRS and does not replace financial measures defined in IFRS. Attendo's definitions of financial measures not defined in IFRS can differ from other companies' definitions. All Attendo's definitions are included above. Calculation of all financial measures can be reconciled to items in the income statement and balance sheet, and information on page 21.
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